First Australia Prime Income Investment Company Limited Company Performance Highlighted.

TORONTO--(BUSINESS WIRE)--Sept. 26, 1997-- First Australia Prime (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 (TSE - FAP), announced the Company's cumulative total return from inception to August 31, 1997 was 358.39 percent, with an annualized total return of 14.54 percent. In comparison, the cumulative performance of the Salomon Brothers 7- 10 year Canadian Government Bond Index, for the same time period, was 218.30 percent and the annualized total return was 10.93 percent. The Company's total return for various periods from its inception in June 1986 to August 31, 1997 are provided below. (All figures are based on distributions reinvested, including long-term capital gains):

          Period         Calculation         NAV Return
          ------         -----------         ----------
          5-year         Cumulative          93.91 percent
          5-year         Annualized          14.16 percent
          3-year         Cumulative          42.16 percent
          3-year         Annualized          12.44 percent
          1-year         Cumulative           5.90 percent

The Company continues to provide shareholders with a high level of income. Its dividend yield for the 12-month period ended August 31, 1997 was 7.6 percent, based on an ordinary share price of C$14.40.

As of August 31, 1997, the average maturity of the portfolio was 5.73 years. The breakdown of the maturity of the portfolio as of August 31, 1997 is as follows: 10+ years, 13.9 percent; 5-10 years, 42.5 percent; 1-5 years, 36.7 percent; less than one year, 6.9 percent.

The Company currently has share purchase warrants outstanding which expire on December 31, 1997. As of August 31, 1997, 7,411,925 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.

CONTACT: First Australia Prime Income Investment Co. Ltd.

Brian Sherman, 011/612-9950-2888

or

EquitiLink USA

Richard Strickler, 800/992-6341

or

Dewe Rogerson Inc.

Marissa Moretti, 212/688-6840

800/323-9995

or

Dewe Rogerson Inc.

Judy Inosanto, 212/688-6840

800/323-9995