Aberdeen Australia Equity Fund, Inc. Announces Quarterly Distribution of $.27

Aberdeen Australia Equity Fund, Inc. (NYSE: IAF), a closed-end equity fund, announced today that it will pay a quarterly distribution of US 27 cents per share on October 15, 2010 to all shareholders of record as of September 30, 2010. The Fund has a managed distribution policy of paying quarterly distributions at an annual rate, set once a year, that is a percentage of the rolling average of the Fund's prior four quarter-end net asset values. In March 2010, the Board of Directors determined that the rolling distribution rate would be 10% for the 12 months commencing with the distribution payable in April 2010.