Aberdeen Australia Equity Fund, Inc. Announces Performance Data and Portfolio Composition

Aberdeen Australia Equity Fund, Inc. Announces Performance Data and Portfolio Composition

NEW YORK, Sept. 2 /PRNewswire/ -- Aberdeen Australia Equity Fund, Inc. (AMEX:IAF)(AMEX:/)(AMEX:PSE:)(AMEX:IAF), a closed-end equity fund, announced today its performance data and portfolio composition as of July 31, 2005.

The Fund's total returns for various periods through July 31, 2005 are provided below. (All figures are based on distributions reinvested at the dividend reinvestment price and are stated net-of-fees):

Period NAV Total Return % Market Price Total Return %
Cumulative Annualized Cumulative Annualized

Since inception
(December 1985) 369.7 8.2 385.4 8.4
10-years 155.5 9.8 214.1 12.1
5-years 107.4 15.7 167.1 21.7
3-years 112.2 28.5 159.8 37.5
1-year 34.5 54.1

The Fund's returns, which are denominated in U.S. dollars, are affected by the performance of the U.S. dollar against the Australian dollar.

On July 31, 2005, 82.0% of the Fund's portfolio was held in industrial equities, which includes the financial sector, 15.0% was held in resource equities and 3.0% was held in cash. The quality of the portfolio remains high, with 78.1% of the Fund's stocks being included in the Australian Stock Exchange's Fifty Leaders Index. As of July 31, 2005, the Fund's net assets amounted to US$196.3 million and the Fund's NAV per share was $11.69 per share.

The Fund's ten largest equity holdings as of July 31, 2005, representing 59.9% of total assets, were:

Stock Percent of
Total Assets
Rio Tinto Limited 7.6
BHP Billiton Limited 7.4
QBE Insurance Group Limited 7.0
Australia & New Zealand Banking Group Limited 6.9
Westpac Banking Corporation Limited 6.6
Woolworths Limited 5.5
Westfield Group 5.0
TABCORP Holdings Limited 4.9
Telecom Corporation of New Zealand Limited 4.6
Telstra Corp Limited 4.4

Aberdeen Australia Equity Fund, Inc. is managed by Aberdeen Asset Management Asia Limited ("Investment Manager") and advised by Aberdeen Asset Management Limited ("Investment Adviser"). Aberdeen Asset Management Inc. ("Administrator") has prepared this report based on information sources believed to be accurate and reliable. However, the figures are unaudited and neither the Fund, the Investment Manager, the Investment Adviser, the Administrator, nor any other person, guarantees their accuracy. Investors should seek their own professional advice before acting on this information.

Past performance does not guarantee future results.

If you wish to receive this information electronically, please contact: InvestorRelations@aberdeen-asset.com

Source: Aberdeen Australia Equity Fund, Inc.

CONTACT: Investor Relations of Aberdeen Asset Management Inc.,
+1-866-839-5205, InvestorRelations@aberdeen-asset.com

Web site: http://www.aberdeen-asset.com/

-------
Profile: jene26