PHILADELPHIA, Jan. 17, 2014 /PRNewswire/ -- Aberdeen Israel Fund, Inc. (NYSE MKT: ISL) (the "Fund"), a closed-end equity fund, today announced that it paid on January 17, 2014, a distribution of US $0.25757 per share to all shareholders of record as of December 31, 2013.

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Under U.S. tax rules applicable to the Fund, the amount and character of distributable income for each fiscal year can be finally determined only as of the end of the Fund's fiscal year. However, under Section 19 of the Investment Company Act of 1940, as amended (the "1940 Act") and related Rules, the Fund may be required to indicate to shareholders the source of certain distributions to shareholders.

The following table sets forth the estimated amounts of the sources of the distribution for purposes of Section 19 of the 1940 Act and the Rules adopted thereunder. The table has been computed based on generally accepted accounting principles. The table includes estimated amounts and percentages for this distribution and for the cumulative distributions paid relating to fiscal year to date (01/01/2013 - 12/31/2013), from the following sources: net investment income; net realized short-term capital gains; net realized long-term capital gains; and return of capital. 



                Estimated              Estimated          Estimated                   Estimated
                Amounts of             Amounts of         Amounts of Fiscal           Amounts of Fiscal
                Current                Current            Year to Date                Year to Date
                Distribution           Distribution       Cumulative                  Cumulative
                per share ($)          per share (%)     Distributions               Distributions
                                                          per share ($)               per share (%)
                                                          ------------                ------------

    Net
     Investment
     Income                   $0.23503                91%                   $0.23503                     91%
    -----------               --------               ---                    --------                    ---

    Net
     Realized
     Short-
     Term
     Capital
     Gains
    ---------

    Net
     Realized
     Long-
     Term
     Capital
     Gains                    $0.02254                 9%                   $0.02254                      9%
    ---------                 --------               ---                    --------                    ---

    Return
     of
     Capital
    --------

    Total
     (per
     common
     share)                   $0.25757               100%                   $0.25757                    100%
    -------                   --------               ---                    --------                    ---

The amounts and sources of distributions reported are only estimates and are not being provided for tax reporting purposes. The final determination of the source of all distributions in 2013 will be made after year-end. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of the fiscal year and may be subject to change based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.

Closed-end funds are traded on the secondary market through one of the stock exchanges. The Fund's investment return and principal value will fluctuate so that an investor's shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the net asset value (NAV) of the fund's portfolio. There is no assurance that the Fund will achieve its investment objective. Past performance does not guarantee future results.

Circular 230 disclosure: To ensure compliance with requirements imposed by the U.S Treasury, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

If you wish to receive this information electronically, please contact InvestorRelations@aberdeen-asset.com

www.aberdeenisl.com

SOURCE Aberdeen Israel Fund, Inc.