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 July 31, 2011.

The Fund’s total returns for various periods through July 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

(December 1985)
  771.0   8.8   829.2   9.1
10-years   334.5   15.8   418.1   17.9
5-years   56.8   9.4   59.4   9.8
3-years   14.1   4.5   18.1   5.7
1-year   19.6   26.2

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 July 31, 2011, the Fund’s net assets amounted to US$249.0 million and the Fund’s NAV per share was $11.22.

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

Percent of

Net Assets
Biotechnology   1.5
Consumer Discretionary   5.8
Consumer Staples   10.3
Energy   2.8
Financials   30.1
Health Care   1.0
Industrials   3.2
Information Technology   2.9
Materials   24.7
Other Assets in Excess of Liabilities   2.5
Property Trusts   4.2
Telecommunications   3.8
Utilities   7.2

The Fund's ten largest equity holdings as of July 31, 2011, representing 62.0% of total assets, were:
Stock   Percent of
    Total Assets
BHP Billiton Limited   11.0
QBE Insurance Group Limited   7.7
Woolworths Limited   7.3
Commonwealth Bank of Australia Limited   6.7
Rio Tinto Limited   6.6
Australia & New Zealand Banking Group Limited   6.1
AGL Energy Limited   4.7
Westpac Banking Corporation Limited   4.5
Singapore Telecommunications Limited   3.9
ASX Limited   3.5

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.

Closed-end funds have a one-time initial public offering and then are subsequently traded on the secondary market through one of the stock exchanges. The investment return and principal value will fluctuate so that an investor’s shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the net asset value (NAV) of the fund’s portfolio. There is no assurance that a fund will achieve its investment objective. Past performance does not guarantee future results.

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

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