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Aberdeen Australia Equity Fund, Inc.
(AMEX: IAF)

INVESTMENT OBJECTIVE

The principal investment objective of the Fund is long-term capital appreciation through investment primarily in equity securities of Australian companies listed on the Australian Stock Exchange Limited. Its secondary objective is current income, which is expected to be derived primarily from dividends and interest on Australian corporate and governmental securities.

INVESTMENT POLICIES

The Fund normally invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in equity securities, consisting of common stock, preferred stock and convertible stock, of Australian companies listed on the Australian Stock Exchange Limited. For these purposes, "Australian companies" means companies that are tied economically to Australia.

The information contained above provides only a brief summary description of the Fund's investment objectives and investment policies. Please click here for a more complete description of the Fund's investment objectives, investment policies and investment restrictions. Please contact Aberdeen Investor Relations should you wish to receive more detailed information regarding the Fund.

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For more information on the Aberdeen Asia-Pacific
Income Fund, Inc., click here.

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