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FIRST AUSTRALIA PRIME INCOME FUND RIGHTS OFFERING IS 100 PERCENT SUBSCRIBED

 NEW YORK, Nov. 1 /PRNewswire/ -- The First Australia Prime Income Fund, Inc. (AMEX: FAX), a closed-end bond fund, today announced that virtually 100 percent of the 17,311,869 shares offered during its non-transferable rights offering were subscribed for, at a price of $9.48 per share.
 The offering, which expired at 5 p.m. on Friday, Oct. 22, 1993, resulted in proceeds to the fund of approximately $163,593,990. To date, the fund's rights offering has been one of the largest of any closed-end fund in the United States.
 Brian Sherman, president of the fund, offered the following: "We are extremely pleased with the outcome of this offering. With the subscription price set at $9.48, we believe the offering provided those shareholders who exercised their rights with outstanding value."
 For every full share of common stock owned on Sept. 17, 1993 (the "record date"), a shareholder was issued one-sixth of a non-transferable right. For each full right held, the shareholder was entitled to subscribe for one share at a price equivalent to 95 percent of the lower of (a) the average of the last reported sale prices of a share 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 per share as of the pricing date.
 On the pricing date, the fund's net asset value was $10.22 while the average of the last reported sale prices of the fund's shares on the pricing date and four preceding business days was $9.98. The subscription price was therefore calculated at 95 percent of $9.98, providing subscribers with the benefit of the lower price.
 Laurence Freedman, vice president of the fund, said, "The Australian bond market continues to offer U.S. investors higher real yields, compared with those found on U.S. fixed-income securities."
 Confirmations to participants were sent out today, Nov. 1, 1993, and the final payment by registered shareholders for the new shares will be due on Nov. 12, 1993. The net proceeds of the offering will be included in the calculation of the fund's net asset value per share on Nov. 12, 1993. Stock certificates are also expected to be mailed out by the latter date.
 The fund's policy is to invest at least 65 percent of its portfolio in Australian issuers or debt securities rated AA or better. The primary listing for The First Australia Prime Income Fund is on the American Stock Exchange.
 The fund is advised by EquitiLink Australia Limited and managed by EquitiLink International Management Limited. The dealer-managers for the fund's offering were Prudential Securities Incorporated and Merrill Lynch, Pierce, Fenner & Smith Incorporated.
 -0- 11/1/93
 /CONTACT: Brian Sherman of The First Australia Prime Income Fund, Inc., 011-612-258-8222, or Marissa Moretti or Doug Myers of Dewe Rogerson, 1-800-626-0993 or 212-688-6840, for The First Australia Prime Income Fund/
 (FAX) CO: The First Australia Prime Income Fund, Inc. ST: IN: FIN SU: OFR


GK-JS -- NY062 -- 9212 11/01/93 14:04 EST
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Publication:PR Newswire
Date:Nov 1, 1993
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