Aberdeen Asia-Pacific Income Investment Company Limited announces a reduced monthly distribution of 5.0 cents per share equivalent to 9.2% distribution yield per annum(1)

    TORONTO, Dec. 13 /CNW/ - Aberdeen Asia-Pacific Income Investment Company
Limited (TSX: FAP) (the "Company"), a closed-end investment company trading on
The Toronto Stock Exchange, announced today, that it has reduced its monthly
distribution from CAD 6.0 cents per ordinary share to CAD 5.0 cents per
ordinary share, commencing with the distribution payable on January 11, 2008,
to all ordinary shareholders of record as of December 31, 2007
(ex-distribution date December 27, 2007). It is the Board's intention that the
monthly distribution rate of CAD 5.0 cents per ordinary share be maintained
for 12 months, beginning with the January 11, 2008 distribution payment. This
policy is subject to regular review at the Board's quarterly meetings. The
next review is scheduled to take place in March 2008.
    The investment objective of the Company is to obtain current income and
achieve incidental capital appreciation. As previously reported, the Company
has experienced pressure on its earnings capability for some time. One of the
most significant factors has been the appreciation of the Canadian Dollar
against the currencies in which the Company invests which has inhibited the
ability of the Company to fully earn its distribution at recent levels.
Aberdeen Asset Management Limited, the investment advisor, has considered the
available investment opportunities and has realigned the portfolio as
appropriate while maintaining an average investment grade credit rating.
    Given the expected earnings of the portfolio, it is believed that the
reduced distribution of CAD 5.0 cents per share per month, equivalent to 9.2%
distribution yield per annum(1), is more consistent with the sustainable
earnings of the Company.
    For the 12 months to November 30, 2007, the Company has paid total
distributions amounting to CAD 72.0 cents per ordinary share.
    The policy of the Company's Board of Directors is to maintain a stable
monthly distribution out of net investment income, supplemented by available
realized capital gains and paid-in capital as required.
    Shareholders with registered addresses in Canada will receive
distributions in Canadian Dollars unless they have elected otherwise. The
distribution constitutes a dividend for Canadian income tax purposes.

    The Company is managed by Aberdeen Asset Management Asia Limited and
advised by Aberdeen Asset Management Limited.

    Information in this press release that is not current or historical
factual information may constitute forward-looking information within the
meaning of securities laws. Implicit in this information, particularly in
respect of future financial performance and condition of the Company, are
factors and assumptions which, although considered reasonable by the Company
at the time of preparation, may prove to be incorrect. Shareholders are
cautioned that actual results are subject to a number of risks and
uncertainties, including general economic and market factors, including
credit, currency, political and interest-rate risks and could differ
materially from what is currently expected. The Company has no specific
intention of updating any forward-looking information whether as a result of
new information, future events or otherwise.

    If you wish to receive this information electronically, please contact


    (1) Based on the closing share price of $6.53 on December 11, 2007.

For further information:

For further information: Aberdeen Asset Management Inc., Investor
Relations, 1-800-992-6341, InvestorRelations@aberdeen-asset.com

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