Interim Results

Aberdeen Asian Income Fund Limited
31 July 2006


ABERDEEN ASIAN INCOME FUND LIMITED
UNAUDITED INTERIM RESULTS
FOR THE SIX MONTHS ENDED 7 MAY 2006


CHAIRMAN'S STATEMENT

Background

I am pleased to report that your Company got off to a satisfactory start for the
first six months of its existence. During the period, which included the fund
raising exercise and the subsequent investment of the proceeds, the net asset
value increased 5.6% from 100.6p at close of business on 21 December 2005 (the
initial net asset value of the Company following launch) to 106.2p on 7 May
2006, the period end. The benchmark MSCI Asia Pacific ex-Japan Index rose 12.8%
over the same period. The Company's underperformance was largely attributable to
poor stock selection, particularly in Australasia where the holding in Telecom
New Zealand suffered from harsh proposed regulatory changes and that in Qantas
fell sharply due to continued high jet-fuel prices. Nonetheless, both companies
have maintained their dividend policies thus far and your Manager remains
comfortable with their valuations. Since the end of the period under review,
stock markets have fallen sharply, and, at the time of writing (27 July 2006),
the Company's unaudited net asset value is 94.26p.

During the period HKD137.6 million (£9.5 million) and USD12.2 million (£6.6
million) was drawn down under the Company's credit facility with Barclays Bank.
The funds were borrowed at all-in interest rates of 4.7 per cent. and 5.3 per
cent. respectively and fixed for an initial period to 18 July 2006 - subsequent
to that period the gearing was rolled for two and three month periods
respectively. There is approximately £14 million remaining available for
drawdown under the credit facility and the Board will consider further
utilisations subject to market conditions and on advice from the Manager.

Income generation from the portfolio in the first six months has been in-line
with expectations. In accordance with the timetable set out in the launch
Prospectus, on 20 July 2006 the Company declared a first interim dividend of
2.0p per Ordinary share which will be payable on 18 August 2006 to Ordinary
shareholders on the register on 28 July 2006 (xd 26 July 2006). Going forward
your Company expects to be in a position to announce a second interim dividend
in January 2007 which will be payable in February 2007, equating to the
annualised 4.5 per cent. yield stated in the launch Prospectus - this remains
subject to unforeseen circumstances and is not a profit forecast.

Overview

The past six months have been positive for Asia: many stock markets rose
strongly, while economic growth continued to outpace much of the developed
world, led by the burgeoning economies of China and India.

Clearly, the region's structural health has improved vastly since the financial
crisis of 1997/98. On the economic front, governments have been adroit in
maintaining stricter monetary and fiscal prudence. The resultant large surpluses
in many countries have, in turn, afforded Asian policymakers more leverage in
implementing stimulus measures and the economic benefits have been forthcoming,
spurring higher growth and an improved outlook in a number of countries.

Underpinned by this supportive foundation and strong inflows of foreign
liquidity, several stock markets made new highs, notably in Australia, India and
Indonesia, while both Hong Kong and the Philippines performed well too. In
contrast, Taiwan and Thailand were the worst-performing markets: Taiwan has been
beset by political infighting, and increasing concerns over the build-up in
credit card misuse and its impact on consumer consumption; while Thailand
continues to be weighed down by uncertainty surrounding prime minister Thaksin
Shinawatra's leadership, following the annulment of April's elections. Although
Thaksin has returned to office after a self-imposed absence, ostensibly to
tackle pressing national issues, such as continued violence in the south and a
slowing economy, the government remains in limbo until the fresh polls which are
scheduled for October.

At the corporate level, companies have made encouraging progress. Not only has
the quality of earnings improved, but substantial progress has been made in
strengthening balance sheets and raising the standard of governance. In
addition, the resultant surge in corporate cash flow is no longer being directed
towards non-productive investments or diversification, but is being paid out to
shareholders in the form of increased dividend distributions. Certainly
dividends announced so far this year on your Company's investments have matched
or exceeded forecasts. This bodes well for investor sentiment and, for those
able to take a long term view, should place the region in good stead to weather
future storms.

Outlook

Although the backdrop for the Asian region itself is benign, global factors are
more concerning and we have seen these impact both Asian and global markets
since May. Inflationary pressures have been building worldwide for some time
now, exacerbated by the steep rise in the price of oil and other commodities.
Central banks across the world have been raising interest rates to attempt to
contain this and it remains to be seen how long it takes for these inflationary
pressures to subside.

Meanwhile, the recent sharp correction in stock markets suggests further
volatility ahead, at least in the short term. Much depends on the direction of
US interest rates and new Federal Reserve governor Ben Bernanke will need to
settle in to the position rapidly. Investors have also turned acutely sensitive
to the risks to growth. The steady rise in input costs, in particular the price
of oil, remains a source of vulnerability and general levels of risk aversion
have increased worldwide.

Notwithstanding these risks, your Manager does not anticipate a prolonged flight
of liquidity that has thus far supported Asian markets. Instead, it is likely
that investors will become more discriminating in their choice of investments:
individual stocks will be more sensitive to newsflow and companies that miss
their earnings guidance will be more susceptible to downward pressures on their
share prices.

The Company's portfolio of investments is trading, at the time of writing, on a
price/earnings multiple of 14.3 times for calendar year 2006 and 13.8 times for
calendar year 2007, according to your Manager's estimates, with a low debt/
equity ratio of 28% and a gross dividend yield (before expenses) of more than
5%.

Looking ahead, your Board remains confident that the Company is well positioned
to take advantage of market trends, given your Manager's conservative investment
style.

Future reporting

The Company's first accounting reference period will end on 31 December 2006 and
it is anticipated that the Annual Report in respect of this period will be
posted to shareholders during March and the first Annual General Meeting of the
Company will be held in Jersey in April 2007. In the meantime shareholders can
find regular monthly updates from the Manager, more up to date NAV and share
price information and copies of Stock Exchange announcements on the Company's
website www.asian-income.co.uk. The Company participates in the Aberdeen
Investment Trust Share Plan and ISA (the 'Plans') and shareholders should
contact 0500 00 00 40 for further information on the regular investment and
dividend reinvestment schemes that are available.



Peter Arthur
Chairman
31 July 2006



Aberdeen Asian Income Fund Limited
 Income Statement (unaudited)

                                                                    Period from 8 November 2005
                                                                           to 7 May 2006
                                                                    Revenue    Capital      Total
                                                                     £'000      £'000       £'000
 Investment income
 Dividend income                                                     2,877          -        2,877
 Interest income                                                       355          -          355
                                                                       
 Total revenue                                                       3,232          -        3,232

 Gains on financial assets at fair value through the profit or           -       3,516       3,516
 loss                                                                                       
 Currency gains                                                          -        220          220
                                                                     3,232      3,736        6,968

 Expenses
 Management fees                                                     (169)      (254)        (423)
 Other operating expenses                                            (240)          -        (240)
 Set up costs                                                         (75)          -         (75)
 Profit before finance costs and tax                                 2,748      3,482        6,230

 Finance costs                                                        (87)      (132)        (219)
                                                                                         
 Profit for the period attributable to equity Shareholders           2,661      3,350        6,011


 Earnings per Ordinary share (pence)                                  2.42       3.05         5.47


The total column of this statement represents the total returns of the Company,
prepared in accordance with IFRS.  The revenue and capital columns are
supplementary to this and are prepared under guidance published by the
Association of Investment Trust Companies. All items in the above statement
derive from continuing operations.

All income is attributable to the equity holders of Aberdeen Asian Income Fund
Limited. There are no minority interests.



Balance Sheet (unaudited) 
                                                                           As at
                                                                      7 May 2006
                                                                           £'000
Non-current assets
Investments at fair value through profit and loss                        130,453

Current assets
Other receivables                                                          1,547
Cash and cash equivalents                                                  1,445
                                                                           2,992

Current liabilities
Other payables                                                             (525)
Bank loan                                                               (16,128)
                                                                        (16,653)
Net current liabilities                                                 (13,661)
Net assets                                                               116,792


Capital and reserves
Ordinary share capital                                                   110,000
Warrant reserve                                                            2,200
Capital reserve                                                            1,931
Retained earnings                                                          2,661
Equity Shareholders' funds                                               116,792


Net asset value per Ordinary share (pence):
Basic                                                                     106.17





Statement of Changes in Equity (unaudited)
 Period from 8 November 2005 to 7 May 2006

                                                         Share     Warrant      Capital    Retained
                                                       capital     reserve      reserve    earnings       Total
                                                         £'000       £'000        £'000       £'000       £'000
 Opening balance                                             -           -            -           -           -

 Issue of shares                                       110,000           -            -           -     110,000
 Issue of Warrants                                           -       2,200            -           -       2,200
 Share issue costs                                           -           -      (1,419)           -     (1,419)

 Profit for the period                                       -           -            -       6,011       6,011
 Transferred from retained earnings to capital               -           -        3,350     (3,350)           -
  reserve *                                                                                       
 Balance at 7 May 2006                                 110,000       2,200        1,931       2,661     116,792



* Represents the capital profit attributable to equity Shareholders per
Income Statement.



Cash Flow Statement (unaudited)
                                                                                  Period from 8 November 2005
                                                                                         to 7 May 2006
                                                                                      £'000            £'000
Operating activities
Profit for the period                                                                                  6,011
Add back interest payable                                                                                219
Gains on financial assets at fair value through the profit or loss                                   (3,516)
Net gains on foreign exchange                                                                          (220)
Net purchases of financial assets at fair value through the profit or loss                         (126,937)
Increase in amounts due from brokers                                                                   (231)
Increase in other receivables                                                                        (1,314)
Increase in loan arrangement fee amortised                                                                28
Increase in other payables                                                                               525
Net cash outflow from operating activities before and after interest and taxation                  (125,435)

Financing activities
Net proceeds of share issue                                                         110,780
Draw-down of borrowings                                                              17,091
Net cash inflow from financing activities                                                            127,871
Net increase in cash and cash equivalents                                                              2,436

Effect of foreign exchange rate changes                                                                (991)
Cash and cash equivalents at the end of the period                                                     1,445




Notes to the Financial Statements

For the period 8 November 2005 to 7 May 2006

1.   Principal activity
     The Company is a closed-end investment company incorporated in Jersey, with its shares being listed on the
     London Stock Exchange.

2.   Accounting policies
     The financial statements have been prepared in accordance with International Financial Reporting Standards
     (IFRS) 34 - 'Interim Financial Reporting', as adopted by the International Accounting Standards Board
     (IASB), and interpretations issued by the International Reporting Interpretations Committee of the IASB
     (IFRIC). The principal accounting policies are set out below.

     (a) Basis of preparation
         The financial statements are prepared on a fair value basis for derivative financial instruments and
         financial assets and liabilities at fair value through the profit or loss. Other financial assets and
         liabilities are stated at historical cost.

         The accounting policies which follow set out those policies which apply in preparing the financial
         statements for the period from 8 November March 2005 to 7 May 2006.

         The financial statements have been prepared in accordance with the guidance set out in the Statement of
         Recommended Practice ('SORP') for investment trusts issued by the Association of Investment Trust
         Companies ('AITC') and revised in December 2005.

     (b) Segmental reporting
         The Directors are of the opinion that the Company is engaged in a single segment of business being
         investment business.

     (c) Income
         Dividends receivable on equity shares are brought into account on the ex-dividend date. Dividends
         receivable on equity shares where no ex-dividend date is quoted are brought into account when the
         Company's right to receive payment is established. Where a company has elected to receive dividends in
         the form of additional shares rather than in cash, the amount of the cash dividend is recognised as
         income.  Interest receivable from cash and short-term deposits is accrued to the end of the financial
         period.

     (d) Expenses and interest payable
         All expenses, with the exception of interest expenses which are recognised using the effective interest
         method, are accounted for on an accruals basis. Expenses are charged through the Revenue Account except
         as follows:
         - expenses which are incidental to the acquisition or disposal of an investment are treated as capital;
         - expenses are treated as capital where a connection with the maintenance or enhancement of the value of
         the investments can be demonstrated; and
         - the Company charges 60% of investment management fees and finance costs to capital, in accordance with
         the Board's expected long term return in the form of capital gains and income respectively from the
         investment portfolio of the Company.

     (e) Taxation
         The Company has been granted exempt status for Jersey income tax purposes and thus pays only the flat
         rate exempt company charge of £600 per annum.

     (f) Investments designated as held at fair value through profit or loss
         Purchases of investments are recognised on a trade date basis and designated upon initial recognition
         as at fair value through the profit or loss. Sales of assets are also recognised on a trade date
         basis. Proceeds are measured at fair value, which are regarded as the proceeds of sale less any
         transaction costs.

         The fair value of the financial instruments is based on their quoted bid price at the balance sheet
         date, without deduction for any estimated future selling costs.

         Changes in the value of investments held at fair value through profit or loss and gains and losses on
         disposal are recognised in the Income Statement as 'Gains on investments held at fair value through
         profit and loss'. Also included within this caption are transaction costs in relation to the purchase
         or sale of investments, including the difference between the purchase price of an investment and its
         bid price at the date of purchase.

     (g) Other receivables and payables
         Other receivables do not carry any interest and are short-term in nature and are accordingly stated
         at their nominal value. Other payables are non interest bearing and are stated at their nominal
         value.

     (h) Dividends payable
         Dividends will be paid twice a year (the Company does not intend to pay final dividends). The first
         interim dividend will be paid on 18 August 2006 and the second interim dividend is expected to be
         paid in February

         2007, both in respect of the period from Admission to 31 December 2006. Under IFRS dividends are
         reflected in the financial statements in the period in which they are paid.

         In future, the Company expects to pay, in respect of each financial year, a first interim dividend in
         August and a second interim in February.

     (i) Foreign currency
         Overseas monetary assets and liabilities are converted into Sterling at the rate of exchange ruling
         at the balance sheet date. Transactions during the period involving foreign currencies are converted
         at the rate of exchange ruling at the transaction date. Any gain or loss arising from a change in
         exchange rates subsequent to the date of the transaction is included as an exchange gain or loss and
         recognised in the Income Statement.
     (j) Borrowings
         Monies borrowed to finance the investment objectives of the Company are stated at the amount of the
         net proceeds immediately after issue plus cumulative finance costs less cumulative payments made in
         respect of the debt. The finance costs of such borrowings are allocated to years over the term of the
         debt at a constant rate on the carrying amount and are charged 40 per cent to revenue and 60 per cent
         to capital reserves to reflect the Company's investment policy and prospective income and capital
         growth.

3.   Earnings per share
     The earnings per Ordinary share is based on the net income after taxation of £6,011,000 and on 110,000,000
     Ordinary shares, being the weighted average number of Ordinary shares in issue during the period.

     The earnings per Ordinary share detailed above can be further analysed between revenue and capital as
     follows:

                                                                              Period from 8 November 2005
                                                                                     to 7 May 2006
                                                                             Revenue         Capital         Total
    Net profit (£'000)                                                         2,661           3,350         6,011
    Weighted average number of Ordinary shares in issue                  110,000,000     110,000,000   110,000,000
    Return per Ordinary share (p)                                               2.42            3.05          5.47


4.   Net asset value per share
     The basic net asset value per Ordinary share is based on a net asset value of £116,792,000 and on 110,000,000
     Ordinary shares, being the number of Ordinary shares in issue at the period end.

5.   On 20 December 2005 the Company issued 110,000,000 Ordinary shares and 22,000,000 Warrants pursuant
     to the Enlarged Placing and Offer Issue, incurring £1,494,000 of Issue expenses.  The Warrantholders
     are entitled to subscribe in cash for one Ordinary share at 120p on the subscription date, which is
     the twentieth business day after the dispatch to Ordinary Shareholders of the Company's Annual
     Report and Accounts or half-yearly report for each year, commencing with the twentieth business day
     after the dispatch to Ordinary Shareholders of the Company's Annual Report and Accounts for the year
     ending 31 December 2009 and ending on the twentieth business day after the dispatch to Ordinary
     Shareholders of the Company's Annual Report and Accounts for the year ending 31 December 2012.

6.   The Interim Report for the six months to 7 May 2006 will be posted to Shareholders shortly.  Copies
     will be available from the registered office of the Company at No. 1 Seaton Place, St. Helier,
     Jersey JE4 8YJ in due course.



Aberdeen Private Wealth Management Limited
Secretaries
31 July 2006



Independent Review Report to the Members of Aberdeen Asian Income Fund Limited

Introduction

We have been instructed by the company to review the financial information for
the six months ended 7 May 2006 which comprises the Income Statement, Balance
Sheet, Statement of Changes in Equity, Cash Flow Statement, and the related
notes 1 to 6.  We have read the other information contained in the interim
report and considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.

This report is made solely to the company in accordance with guidance contained
in Bulletin 1999/4 'Review of interim financial information' issued by the
Auditing Practices Board. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the company, for our work,
for this report, or for the conclusions we have formed.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors.  The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the forthcoming annual accounts except where any
changes, and the reasons for them, are disclosed.

Review Work Performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4
'Review of interim financial information' issued by the Auditing Practices Board
for use in the United Kingdom.  A review consists principally of making
enquiries of management and applying analytical procedures to the financial
information and underlying financial data, and based thereon, assessing whether
the accounting policies and presentation have been consistently applied, unless
otherwise disclosed.  A review excludes audit procedures such as tests of
controls and verification of assets, liabilities and transactions.  It is
substantially less in scope than an audit performed in accordance with
International Standards on Auditing (UK and Ireland) and therefore provides a
lower level of assurance than an audit.  Accordingly we do not express an audit
opinion on the financial information.

Review Conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 7 May 2006.


                                                               Ernst & Young LLP
                                                                          Jersey
31 July 2006                                                     Channel Islands




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