PHILADELPHIA, Dec. 11 /PRNewswire-FirstCall/ -- Aberdeen Australia Equity Fund, Inc. (NYSE Alternext US: IAF) ("the "Fund"), a closed-end equity fund, announced today that it will pay a quarterly distribution of US 33 cents per share on January 16, 2009 to all shareholders of record as of December 31, 2008 (ex-dividend date December 29, 2008). The Fund has a managed distribution policy of paying quarterly distributions at an annual rate, set once a year, that is a percentage of the rolling average of the Fund's prior four quarter-end net asset values. In March 2008, the Board of Directors determined that the rolling distribution rate would be 10% for the 12 months commencing with the distribution payable in April 2008. This policy will be subject to regular review by the Fund's Board of Directors. The distributions will be made from current income, supplemented by realized capital gains and, to the extent necessary, paid-in capital. For the 12 months to November 30, 2008, the Fund has paid total distributions amounting to US $1.84 per share. The composition of distributions paid by the Fund since the beginning of the Fund's fiscal year, November 1, 2008, will be estimated through the payment date, and announced at the time of payment of the distribution. The Fund is managed by Aberdeen Asset Management Asia Limited and advised by Aberdeen Asset Management Limited. The Fund's shares trade on the New York Stock Exchange Alternext US under the symbol "IAF". If you wish to receive this information electronically, please contact www.aberdeeninvestments.com Aberdeen Asset Management Asia Limited and Aberdeen Asset Management Limited are registered investment advisers under the Investment Advisers Act of 1940. DATASOURCE: Aberdeen Australia Equity Fund, Inc. CONTACT: Aberdeen Asset Management Inc. Investor Relations, +1-866-839-5205, or Web Site: http://www.aberdeeninvestments.com/

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