Aberdeen Australia Equity Fund, Inc. Announces Determination not to Proceed With Proposed In-Kind Tender Offer NEW YORK, Nov. 19 /PRNewswire-FirstCall/ -- On February 19, 2003, Aberdeen Australia Equity Fund, Inc. , a closed-end equity fund, announced its intention to conduct an in-kind tender offer to repurchase up to 40% of the Fund's outstanding shares at a price of 90% of the Fund's net asset value per share. In this announcement, the Fund indicated that Bankgesellschaft Berlin AG (the "Bank"), a beneficial owner of 5% or more of the Fund's outstanding voting securities, would be unable to participate in the proposed in-kind tender offer without first obtaining exemptive relief from the Securities and Exchange Commission (the "Commission"). In an amendment to the Bank's report on Schedule 13D with respect to the Fund, filed by the Bank with the Commission on September 10, 2003, the Bank reported that "the staff of the Commission has advised the Bank that the staff will not support the Bank's application for exemptive relief. As a consequence of this development, the Bank has determined to withdraw its request for exemptive relief." In light of the foregoing, the Board of Directors of the Fund has determined that it is not in the best interests of the Fund and its stockholders to conduct the proposed in-kind tender offer if 32% of the Fund's shares would be unable to participate. Accordingly, the Board has determined not to proceed with the proposed in-kind tender offer. Would you like to receive this information electronically? Contact: . DATASOURCE: Aberdeen Australia Equity Fund, Inc. CONTACT: Investor Relations of Aberdeen Asset Management, 1-800-522-5465, Web site: http://www.aberdeen-asset.com/

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