NEW YORK, July 31 /PRNewswire-FirstCall/ -- Aberdeen Australia Equity Fund, Inc. (AMEX:IAF) (PSE:IAF), a closed-end equity fund, announced today its performance data and portfolio composition as of June 30, 2006. The Fund's total returns for various periods through June 30, 2006 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) 442.8 8.6 474.6 8.9 10-years 154.5 9.8 218.4 12.3 5-years 156.3 20.7 197.9 24.4 3-years 92.7 24.4 134.6 32.9 1-year 18.0 17.5 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, 2006, 81.1% of the Fund's portfolio was held in industrial equities, which includes the financial sector, 17.8% was held in resource equities and 1.1% was held in cash. The quality of the portfolio remains high, with 81.2% of the Fund's stocks being included in the Australian Stock Exchange's Fifty Leaders Index. As of June 30, 2006, the Fund's net assets amounted to US$204.3 million and the Fund's NAV per share was $12.14 per share. The Fund's ten largest equity holdings as of June 30, 2006, representing 63.1% of total assets, were: Stock Percent of Total Assets BHP Billiton Limited 9.6% Rio Tinto Limited 8.2% Australia & New Zealand Banking Group Limited 7.1% QBE Insurance Group Limited 7.1% Westpac Banking Corporation 6.6% Woolworths Limited 5.9% Westfield Group 5.0% Woodside Petroleum Limited 4.9% TABCORP Holdings Limited 4.6% Commonwealth Bank of Australia 4.1% 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 20, 1985. If you wish to receive this information electronically, please contact: DATASOURCE: Aberdeen Australia Equity Fund, Inc. CONTACT: Investor Relations of Aberdeen Asset Management Inc., 1-866- 839-5205, Web site: http://www.aberdeen-asset.com/

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