Aberdeen Australia Equity Fund, Inc. Announces Payment of Quarterly Distribution

PHILADELPHIA, July 10 /PRNewswire-FirstCall/ -- Aberdeen Australia Equity
Fund, Inc. (NYSE Amex: IAF) (the "Fund"), a closed-end equity fund, today
announced that it paid on July 10, 2009, a quarterly distribution of US $0.23
per share to all shareholders of record as of June 30, 2009. For the 12
months to June 30, 2009, the Fund has paid total distributions amounting to US
$1.42 per share.

The policy of the Board of Directors is to provide investors with a stable
distribution rate. Each quarterly distribution will be paid out of current
income, supplemented by realized capital gains and, to the extent necessary,
paid-in capital.

The Fund is subject to U.S. corporate, tax and securities laws. Under U.S.
tax accounting rules, the amount of distributable income for each fiscal
period depends on the actual exchange rates during the entire year between the
U.S. dollar and the currencies in which Fund assets are denominated and on the
aggregate gains and losses realized by the Fund during the entire year.
Therefore the exact amount of distributable income for each fiscal year can
only be determined as of the end of the Fund's fiscal year, October 31.
However, under the Investment Company Act of 1940, the Fund may be required to
indicate the sources of certain distributions to shareholders.

The Fund estimates that the distributions for the fiscal year commencing
November 1, 2008, including the distributions paid on July 10, 2009, are
comprised of 18% net investment income and 82% return of paid-in-capital.
This estimated distribution composition may vary from quarter to quarter
because it may be materially impacted by future realized gains and losses on
securities and fluctuations in the value of the currencies in which Fund
assets are denominated.

In January 2010, a Form 1099-DIV will be sent to shareholders, which will
state the amount and composition of distributions and provide information with
respect to their appropriate tax treatment for the 2009 calendar year.

The Fund is managed by Aberdeen Asset Management Asia Limited and advised by
Aberdeen Asset Management Limited. The Fund's shares trade on the NYSE AMEX
under the symbol "IAF".

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

www.aberdeeniaf.com

Aberdeen Asset Management Asia Limited and Aberdeen Asset Management Limited
are registered investment advisers under the Investment Advisers Act of 1940.

SOURCE Aberdeen Australia Equity Fund, Inc.

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