Allianz Global Investors Fund Management LLC Announces Change to Investment Policy of PIMCO High Income Fund

NEW YORK--(BUSINESS WIRE)-- Allianz Global Investors Fund Management LLC (“AGIFM”), investment manager to PIMCO High Income Fund (NYSE:PHK) (the “Fund”), announced today that effective November 13, 2009, the Fund’s non-fundamental investment policy regarding minimum investment in below investment grade securities will be revised. Under its new non-fundamental policy, under normal market conditions, the Fund will seek to achieve its investment objectives by investing at least 50% of its net assets in debt securities that are, at the time of purchase, rated below investment grade (below Baa by Moody's Investors Service, Inc., below BBB by either Standard & Poor's or Fitch, Inc., or unrated but judged by the Fund’s portfolio manager, Pacific Investment Management Company LLC (“PIMCO”), to be of comparable quality (together, “High Yield Securities”), which may be represented by forward contracts or derivatives such as options, futures contracts or swap agreements. The Fund will continue to be permitted to invest without limitation in High Yield Securities.

The Board of Trustees approved the change based on the recommendation from AGIFM and PIMCO that replacing its 80% minimum investment policy with respect to High Yield Securities with a less restrictive 50% policy is in the best interests of the Fund and the Fund’s shareholders. The use of the term “high income” in the Fund’s name is intended to suggest the Fund’s primary objective of seeking high current income and is not intended to suggest any particular type of security or other investment. Under the Fund’s new non-fundamental investment policy, the Fund would still have substantial exposure to High Yield Securities. However, the Fund would also have the flexibility to pursue its investment objective by investing a substantial portion of its assets in securities and instruments other than High Yield Securities that PIMCO believes will produce relatively high levels of current income, including investment grade debt securities, preferred stocks and other investments permitted under the Fund’s investment guidelines.

The Fund’s primary investment objective is to seek high current income. Capital appreciation is a secondary objective. There can be no assurance that the Fund will achieve its stated objectives.

AGIFM, an indirect, wholly-owned subsidiary of Allianz Global Investors of America L.P., serves as the Fund’s investment manager and is a member of Munich-based Allianz Group (NYSE:AZ). PIMCO, an Allianz Global Investors Fund Management affiliate, serves as the Fund’s sub-adviser.

The Fund’s daily New York Stock Exchange closing prices and net asset values per share are available by calling the Fund’s shareholder servicing agent at (800) 254-5197. This information, as well as updated portfolio statistics and performance, is available at http://www.allianzinvestors.com.

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 Fund’s performance, a general downturn in the economy, inability to obtain leverage to replace ARPS that have been redeemed, competition from other companies, changes in government policy or regulation, inability to attract or retain key employees, inability to implement its operating strategy and/or acquisition strategy, and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations. The Fund’s ability to maintain leverage and to pay dividends to common shareholders is subject to the restrictions in its registration statements, By-laws and other governing documents as well as the Investment Company Act of 1940.

Contacts

For information on PIMCO Closed-End Funds:

Financial Advisors: 800-628-1237

Shareholders: 800-285-4086

Media Relations: 212-739-3501