First Australia Prime Income Investment Company Limited Announces Dividend.

TORONTO--(BUSINESS WIRE)--June 12, 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 Fund.

First Australia Prime Income Investment Company Limited, a closed-end investment company trading on The Toronto Stock Exchange, announced today it will pay a monthly dividend of CAN 8 cents per share (equivalent to approximately US 5.59 cents per share) on July 15, 1998, to all shareholders of record as of June 30, 1998.

The policy of the Company's Board of Directors is to continue to pay a stable monthly dividend out of net investment income, supplemented by realized capital gains as required. It is the Board's intention that the monthly dividend be maintained at the current level, subject to regular review at the Board's quarterly meetings, with the next review to take place in September 1998.

Shareholders with registered addresses in Canada will receive dividends in Canadian dollars unless they have elected otherwise. Shareholders receiving their dividend payments in U.S. dollars will receive the U.S. dollar equivalent based upon the exchange rate in effect on the record date.

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 or Laurence Freedman,

011/612-9950-2888

http://www.equitilink.com.au

or

EquitiLink USA

Richard Strickler, 800/992-6341

or

Dewe Rogerson Inc.

Robin Brassner or Patty Baronowski,

212/688-6840 or [phone]