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 May 31, 2011.

The Fund’s total returns for various periods through May 31, 2011 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   802.2   9.0   850.7   9.3
(December 1985)                
10-years   340.9   16.0   433.3   18.2
5-years   65.0   10.5   65.8   10.6
3-years   4.5   1.5   4.8   1.6
1-year   33.0   39.2

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 May 31, 2011, the Fund’s net assets amounted to US$261.1 million and the Fund’s NAV per share was $11.90.

As of May 31, 2011, the portfolio was invested as follows:
Portfolio Composition  

Percent of

Net Assets
Consumer Discretionary   5.8
Consumer Staples   10.2
Energy   3.2
Financials   29.3
Health Care   2.1
Industrials   2.9
Information Technology   3.1
Materials   23.6
Other   3.5
Property Trusts   5.2
Telecommunications   3.7
Utilities   7.4

The Fund's ten largest equity holdings as of May 31, 2011, representing 63.3% of total assets, were:
Stock   Percent of
    Total Assets
BHP Billiton Limited   12.6
QBE Insurance Group Limited   7.8
Woolworths Limited   7.0
Rio Tinto Limited   6.8
Commonwealth Bank of Australia Limited   6.6
Westpac Banking Corporation Limited   5.2
AGL Energy Limited   4.7
Australia & New Zealand Banking Group Limited   4.7
Westfield Group   4.2
Singapore Telecommunications Limited   3.7

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.

Investors should consider a fund's investment objectives, risks, charges and expenses carefully before investing. A copy of the prospectus for Aberdeen Australia Equity Fund, Inc. that contains this and other information about the fund may be obtained by calling 866-839-5205. Please read the prospectus carefully before investing. Investing in funds involves risk, including possible loss of principal.

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