The First Australia Prime Income Fund, Inc. Announces Monthly Distribution

Apr 16, 2001, 01:00 ET from The First Australia Prime Income Fund, Inc.

    NEW YORK, April 16 /PRNewswire/ -- The First Australia Prime Income Fund,
 Inc., a closed-end bond fund (Amex:   FAX; PCX: FAX), announced today that it
 will pay a monthly distribution of US 4.5 cents per share on May 11, 2001 to
 all shareholders of record as of April 30, 2001 (ex-dividend date
 April 26, 2001).
     For the 12 months to March 31, 2001 the Fund has paid total distributions
 amounting to US 54 cents per share.  Based on the share price of US$3.92 on
 March 31, 2001, this represents an annual cash distribution rate of 13.8%.
     The Board's policy is to provide investors with a stable monthly
 distribution out of current income, supplemented by realized capital gains
 and, to the extent necessary, paid-in capital.  The Board of Directors intends
 to review the distribution policy and current monthly distribution rate of US
 4.5 cents per share at its next regularly scheduled quarterly meeting in June
 2001, unless market conditions require an earlier evaluation.  The Investment
 Manager will provide the Board with an analysis and recommendation to consider
 as a part of the Board's review of the policy.
     The Fund is subject to U.S. corporate, tax and securities laws.  Under
 U.S. tax accounting rules, the amount of distributable income for each fiscal
 period depends on the actual exchange rates during the entire year between the
 U.S. dollar and the currencies in which Fund assets are denominated and on the
 aggregate gains and losses realized by the Fund during the entire year.
     Therefore the exact amount of distributable income for each fiscal year
 can only be determined as of the end of the Fund's fiscal year, October 31.
     However, under the U.S. Investment Company Act of 1940, the Fund is
 required to indicate the source of each distribution to shareholders.
     The Fund estimates that distributions for the fiscal year commencing
 November 1, 2000, including the distribution paid on April 12, 2001, are
 comprised of 34% net investment income and 66% return of paid-in capital.
     This estimated distribution composition may vary from month to month
 because it may be materially impacted by future realized gains and losses on
 securities and fluctuations in the value of the currencies in which Fund
 assets are denominated.
     In January 2002, a Form 1099 DIV will be sent to shareholders, which will
 state the amount and composition of distributions and provide information with
 respect to their appropriate tax treatment.
     Qualifying U.S. taxpayers are generally entitled to a foreign withholding
 tax credit on distributions received.  Shareholders will be informed as to the
 exact amount of the tax credit shortly after the end of the tax year.
     Following the acquisition of the Fund's investment manager and investment
 adviser by Aberdeen Asset Management, PLC, and to comply with the new SEC
 regulation regarding fund names, the Board has approved a change to the Fund's
 name to Aberdeen Asia-Pacific Income Fund, Inc.  The fund is managed by
 Aberdeen Asset Managers (C.I.) Limited and advised by Aberdeen Asset
 Management Limited.  The Fund's shares will continue to trade on the American
 Stock Exchange under the symbol "FAX."
 
     QUALITY OF PORTFOLIO: Approximately 70.1% of the Fund's assets are
 invested in securities rated "AAA/AA" by Standard & Poor's Corporation or
 "Aaa/Aa" by Moody's Investors Service Inc. or, if unrated, judged by the
 Investment Manager to be of equivalent quality.
 
 

SOURCE The First Australia Prime Income Fund, Inc.
    NEW YORK, April 16 /PRNewswire/ -- The First Australia Prime Income Fund,
 Inc., a closed-end bond fund (Amex:   FAX; PCX: FAX), announced today that it
 will pay a monthly distribution of US 4.5 cents per share on May 11, 2001 to
 all shareholders of record as of April 30, 2001 (ex-dividend date
 April 26, 2001).
     For the 12 months to March 31, 2001 the Fund has paid total distributions
 amounting to US 54 cents per share.  Based on the share price of US$3.92 on
 March 31, 2001, this represents an annual cash distribution rate of 13.8%.
     The Board's policy is to provide investors with a stable monthly
 distribution out of current income, supplemented by realized capital gains
 and, to the extent necessary, paid-in capital.  The Board of Directors intends
 to review the distribution policy and current monthly distribution rate of US
 4.5 cents per share at its next regularly scheduled quarterly meeting in June
 2001, unless market conditions require an earlier evaluation.  The Investment
 Manager will provide the Board with an analysis and recommendation to consider
 as a part of the Board's review of the policy.
     The Fund is subject to U.S. corporate, tax and securities laws.  Under
 U.S. tax accounting rules, the amount of distributable income for each fiscal
 period depends on the actual exchange rates during the entire year between the
 U.S. dollar and the currencies in which Fund assets are denominated and on the
 aggregate gains and losses realized by the Fund during the entire year.
     Therefore the exact amount of distributable income for each fiscal year
 can only be determined as of the end of the Fund's fiscal year, October 31.
     However, under the U.S. Investment Company Act of 1940, the Fund is
 required to indicate the source of each distribution to shareholders.
     The Fund estimates that distributions for the fiscal year commencing
 November 1, 2000, including the distribution paid on April 12, 2001, are
 comprised of 34% net investment income and 66% return of paid-in capital.
     This estimated distribution composition may vary from month to month
 because it may be materially impacted by future realized gains and losses on
 securities and fluctuations in the value of the currencies in which Fund
 assets are denominated.
     In January 2002, a Form 1099 DIV will be sent to shareholders, which will
 state the amount and composition of distributions and provide information with
 respect to their appropriate tax treatment.
     Qualifying U.S. taxpayers are generally entitled to a foreign withholding
 tax credit on distributions received.  Shareholders will be informed as to the
 exact amount of the tax credit shortly after the end of the tax year.
     Following the acquisition of the Fund's investment manager and investment
 adviser by Aberdeen Asset Management, PLC, and to comply with the new SEC
 regulation regarding fund names, the Board has approved a change to the Fund's
 name to Aberdeen Asia-Pacific Income Fund, Inc.  The fund is managed by
 Aberdeen Asset Managers (C.I.) Limited and advised by Aberdeen Asset
 Management Limited.  The Fund's shares will continue to trade on the American
 Stock Exchange under the symbol "FAX."
 
     QUALITY OF PORTFOLIO: Approximately 70.1% of the Fund's assets are
 invested in securities rated "AAA/AA" by Standard & Poor's Corporation or
 "Aaa/Aa" by Moody's Investors Service Inc. or, if unrated, judged by the
 Investment Manager to be of equivalent quality.
 
 SOURCE  The First Australia Prime Income Fund, Inc.