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

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

PHILADELPHIA, July 31 /PRNewswire-FirstCall/ -- Aberdeen Australia Equity
Fund, Inc. (the "Fund") (Amex: IAF), a closed-end equity fund, announced today
its performance data and portfolio composition as of June 30, 2008.
The Fund's total returns for various periods through June 30, 2008 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) 709.9 9.7 753.1 10.0
10-years 334.3 15.8 480.6 19.2
5-years 187.5 23.5 248.4 28.4
3-years 76.1 20.8 74.5 20.4
1-year 2.8 -0.3

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 June 30, 2008, the Fund's net assets amounted to US$280.9 million and
the Fund's NAV per share was $14.62.
As of June 30, 2008, the portfolio was invested as follows:

Portfolio Composition Percent of
Net Assets
Consumer Discretionary 8.3
Consumer Staples 15.2
Energy 4.8
Finance 25.6
HealthCare 0.9
Industrials 5.3
Materials 26.0
Other 3.1
Property 3.5
Technology 1.2
Telecommunications 1.2
Utilities 4.9

The Fund's ten largest equity holdings as June 30, 2008, representing
60.2% of net assets, were:

Stock Percent of
Net Assets
BHP Billiton Limited 13.1
Rio Tinto Limited 8.8
QBE Insurance Group Limited 7.0
Australia & New Zealand Banking Group Limited 5.1
Westpac Banking Corporation Limited 5.1
Woodside Petroleum Limited 4.8
Commonwealth Bank of Australia 4.3
Woolworths Limited 4.3
Wesfarmers Limited 4.2
Westfield Group Limited 3.5

Important Information
Aberdeen Asset Management Inc., the Fund's 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 Administrator,
Aberdeen Asset Management Asia Limited (the Investment Manager), Aberdeen
Asset Management Limited (the Investment Adviser), nor any other person
guarantees their accuracy. Investors should seek their own professional
advice and should consider the investment objectives, risks, charges and
expenses before acting on this information.
Total return figures with distributions reinvested at the dividend
reinvestment price are stated net-of-fees and represents past performance.
Past performance is not indicative of future results, current performance may
be higher or lower. Inception date December 12, 1985.
If you wish to receive this information electronically, please contact:
InvestorRelations@aberdeen-asset.com
SOURCE Aberdeen Australia Equity Fund, Inc.

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