Allianz Global Investors Closed-End Funds Reject Demand Letters Relating to Auction Rate Preferred Shares

NEW YORK--(BUSINESS WIRE)-- The Boards of Trustees of each of the funds (the “Funds”) named below announced today that the independent Trustees of each Board have rejected the demands contained in letters from a law firm on behalf of certain purported common shareholders of the Funds.

The named Funds are:

PIMCO Corporate Income Fund (NYSE:PCN)
PIMCO Corporate Opportunity Fund (NYSE:PTY)
PIMCO High Income Fund (NYSE:PHK)
PIMCO Income Strategy Fund
(formerly, PIMCO Floating Rate Income Fund) (NYSE:PFL)
PIMCO Income Strategy Fund II (NYSE:PFN)
(formerly, PIMCO Floating Rate Strategy Fund)
PIMCO Municipal Income Fund II (NYSE:PML)
AGIC Convertible & Income Fund (NYSE:NCV)
(formerly, Nicholas-Applegate Convertible & Income Fund)
AGIC Convertible & Income Fund II (NYSE:NCZ)
(formerly, Nicholas-Applegate Convertible & Income Fund II)

As previously announced in press releases dated July 2, 2010 and July 8, 2010, each Fund received one or more demand letters that alleged that Allianz Global Investors Fund Management LLC (“AGIFM”), investment manager to each Fund, and certain officers and Trustees of the Funds, breached their fiduciary duties in connection with the redemption of a portion of the Funds’ auction rate preferred shares (“ARPS”) in 2008 and 2009. The letters demanded that the Boards of Trustees take certain action to remedy those alleged breaches. After conducting an extensive investigation, the independent Trustees of the Funds rejected the demands made in the demand letters.

AGIFM, an indirect, wholly-owned subsidiary of Allianz Global Investors of America L.P., serves as the Funds' investment manager and is a member of Munich-based Allianz Group. Pacific Investment Management Company LLC (“PIMCO”) and Allianz Global Investors Capital LLC (“AGIC”), AGIFM affiliates, serve as the Funds’ sub-advisers. Effective August 25, 2010, AGIC became the investment sub-adviser for NCV and NCZ. The Funds' New York Stock Exchange closing prices, net asset values per share, as well as other information, including updated portfolio statistics and performance, are available at http://www.allianzinvestors.com or by calling the Funds' shareholder servicing agent at (800) 254-5197.

Statements made in this release that look forward in time involve risks and uncertainties and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such risks and uncertainties include, without limitation, the adverse effect from further declines in the securities markets and in the Funds’ performance, a general downturn in the economy, competition from other companies, changes in government policy or regulation, inability to attract or retain key employees, inability to implement their operating strategy and/or acquisition strategy, and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations. Each Fund’s ability to pay dividends to common shareholders is subject to the restrictions in its registration statement and other governing documents as well as the Investment Company Act of 1940.