First Australia Prime Income Investment Company Limited Company Performance Highlighted.

TORONTO--(BUSINESS WIRE)--Aug. 25, 1997--(TSE:FAP) First Australia Prime Income Investment Company Limited, a closed-end investment company trading on The Toronto Stock Exchange (TSE:FAP), announced the Company's cumulative total return from inception to July 31, 1997 was 283.71 percent, with an annualized total return of 12.84 percent. In comparison, the cumulative performance of the Salomon Brothers 7-10 year Canadian Government Bond Index, for the same time period, was 221.04 percent and the annualized total return was 11.10 percent. The Company's total return for various periods from its inception in June 1986 to July 31, 1997 are provided below. (All figures are based on dividends reinvested, including long-term capital gains): -0-

    Period             Calculation            NAV Return
    ------             -----------            ----------
    5-year              Cumulative           55.61 percent
    5-year              Annualized            9.25 percent
    3-year              Cumulative           45.21 percent
    3-year              Annualized           13.24 percent
    1-year              Cumulative           15.48 percent

The Company continues to provide shareholders with a high level of income. Its dividend yield for the 12-month period ended July 31, 1997 was 7.5 percent, based on an ordinary share price of C$14.70.

As of July 31, 1997, the average maturity of the portfolio was 5.5 years. The breakdown of the maturity of the portfolio as of July 31, 1997 is as follows: 8+ years, 24.7 percent; 5-8 years, 28.9 percent; 1-5 years, 38 percent; less than one year, 8.4 percent.

The Company currently has share purchase warrants outstanding which expire on December 31, 1997. As of July 31, 1997, 7,276,979 warrants were exercised, out of the approximately 9,085,000 warrants issued by the Company.

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. -0-

Note to 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.

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.

Marissa Moretti, 212/688-6840

or

Judy Inosanto, 800/323-9995