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FIRST AUSTRALIA PRIME INCOME FUND ANNOUNCES FINAL TERMS OF ITS RIGHTS OFFERING

 NEW YORK, Aug. 31 /PRNewswire/ -- The First Australia Prime Income Fund, Inc. (AMEX: FAX) today announced the final terms of its rights offering, entitling shareholders to subscribe for an aggregate of up to 17,285,744 shares of common stock of the fund.
 The fund will issue 1/6 of a non-transferable right for each full share of common stock owned of record on Sept. 17, 1993 (the "record date"). The rights entitle the shareholder to acquire one share for each full right held.
 In addition, shareholders who exercise all rights issued to them (other than those rights which cannot be exercised because they represent the right to acquire less than one share) are entitled to subscribe for shares which are not otherwise subscribed for by others in the primary subscription. If sufficient shares are not available to honor all over-subscriptions, the fund may, at its discretion, issue up to an additional 25 percent of the shares available pursuant to the offer in order to honor such over-subscriptions.
 The rights may be exercised at any time during the period from Friday, Sept. 17, 1993 to Friday, Oct. 22, 1993 at 5 p.m., New York City time (the "subscription period").
 The subscription price per share will be 95 percent of the lower of (a) an average of last reported sales prices of the fund's common stock on the American Stock Exchange on Oct. 22, 1993 (the "pricing date") and the four preceding business days or (b) the net asset value of a share of common stock on the pricing date.
 Rights are non-transferable and will not be admitted for trading on the American Stock Exchange. The rights offering described above will be made only by means of a prospectus which, along with an exercise form, is expected to be mailed to shareholders on or about Sept. 20, 1993.
 The First Australia Prime Income Fund is a non-diversified, closed- end management company whose investment objective is current income through investment primarily in Australian debt securities. The fund may also achieve incidental capital appreciation.
 The dealer managers for the fund's offering are Prudential Securities Incorporated and Merrill Lynch, Pierce Fenner & Smith Incorporated. The fund's investment manger is EquitiLink International Management Limited and its investment advisor is EquitiLink Australia Limited.
 A registration statement relating to these securities has been filed with the Securities and Exchange Commission and has been declared effective.
 -0- 8/31/93
 /CONTACT: Dick Strickler of EquitiLink USA, 800-522-5465, or Marissa Moretti, or Doug Myers, both of Dewe Rogerson, 212-688-6840/
 (FAX)


CO: First Australia Prime Income Fund ST: New York IN: FIN SU: OFR

LD-WB -- NY064 -- 7686 08/31/93 17:45 EDT
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Publication:PR Newswire
Date:Aug 31, 1993
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