Aberdeen Australia Equity Fund, Inc. (the “Fund”) (NYSE AMEX: IAF), a closed-end equity fund, announced today its performance data and portfolio composition as of December 31, 2010.

The Fund’s total returns for various periods through December 31, 2010 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)
    782.8   9.1     787.9   9.1
10-years     317.2   15.4     414.0   17.8
5-years     72.4   11.5     59.6   9.8
3-years     0.8   0.3     -4.1   -1.4
1-year     12.4     8.2

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 December 31, 2010, the Fund’s net assets amounted to US$259.4 million and the Fund’s NAV per share was $11.91.

As of December 31, 2010, the portfolio was invested as follows:
    Portfolio Composition    

Percent of Net Assets
Consumer Discretionary     6.7
Consumer Staples     10.1
Energy     2.9
Finance     30.4
Health Care     3.7
Industrials     1.6
Information Technology     3.1
Materials     24.2
Other     1.6
Property Trusts     5.2
Telecommunications     3.4
Utilities     7.1

The Fund's ten largest equity holdings as of December 31, 2010, representing 61.7% of total assets, were:

Percent of Total Assets
BHP Billiton Limited     12.9
QBE Insurance Group Limited     7.5
Rio Tinto Limited     6.7
Commonwealth Bank of Australia Limited     6.5
Woolworths Limited     5.7
Westpac Banking Corporation Limited     5.2
Australia & New Zealand Banking Group Limited     4.8
AGL Energy Limited     4.5
Westfield Group     4.1
ASX Limited     3.8

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. Aberdeen is a U.S. registered service mark of Aberdeen Asset Management PLC.

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. Holdings are subject to change and are provided for informational purposes only and should not be deemed as a recommendation to buy or sell the securities shown. Inception date December 12, 1985.

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

Copyright Business Wire 2010