First Australia Prime Income Investment Company Limited -- Company Performance Highlighted.

TORONTO--(BUSINESS WIRE)--June 26, 1998--First Australia Prim(TSE:FAP.)

NOTE TO THE EDITORS: First Australia Prime Income Investment Company Limited, a Toronto Stock Exchange listed Company, is traded separately from The First Australia Prime Income Fund, an American Stock Exchange listed Company.

First Australia Prime Income Investment Company Limited, a closed-end investment company trading on The Toronto Stock Exchange, announced the Company's cumulative total return from inception to May 31, 1998 was 321.0 percent, with an annualized total return of 12.8 percent. In comparison, the cumulative performance of the Salomon Brothers 7-10 year Canadian Government Bond Index, for the same time period, was 244.5 percent and the annualized total return was 10.9 percent. The Company's total return for various periods to May 31, 1998 are provided below. (All figures are based on distributions reinvested, including long-term capital gains):

     Period            Calculation        NAV Return
Since Inception         Cumulative        321.0 percent
Since Inception         Annualized         12.8 percent
    10-year             Cumulative        197.7 percent
    10-year             Annualized         11.5 percent
     5-year             Cumulative         55.2 percent
     5-year             Annualized          9.2 percent
     3-year             Cumulative         24.6 percent
     3-year             Annualized          7.6 percent
     1-year                                -7.0 percent

The Company continues to provide shareholders with a high level of income. Its dividend yield for the 12-month period ended May 31, 1998 was 10 percent, based on an ordinary share price of C$10.25. NAV as of May 31, 1998 was C$11.93.

As of May 31, 1998, the average maturity of the portfolio was 5.7 years. The breakdown of the maturity of the portfolio as of May 31, 1998 was as follows: 10+ years, 6 percent; 5-10 years, 46 percent; 1-5 years, 37 percent; less than one year, 11 percent. Credit quality breakdown as of May 31, 1998 was as follows: 77 percent; AAA, 22 percent; AA, and 1 percent; A.

First Australia Prime Income Investment Company Limited, at the time of its offering in June 1986, was the first closed-end investment company listed on The Toronto Stock Exchange to invest in the securities of Australia and New Zealand. The Company is managed by EquitiLink International Management Limited and is advised by EquitiLink Australia Limited.

    CONTACT:  First Australia Prime Income Investment Company Limited
               Brian Sherman, 011/612-9950-2888
                  or
               EquitiLink USA
               Richard Strickler, 800/992-6341
                  or
               Dewe Rogerson Inc.
               Robin Brassner or Patty Baronowski
               212/688-6840 or 800/323-9995