PIMCO California Municipal Income Fund III and PIMCO New York Municipal Income Fund III Report Results for the Fiscal Quarter Ended December 31, 2008

NEW YORK, March 10, 2009 (GLOBE NEWSWIRE) -- PIMCO California Municipal Income Fund III (NYSE:PZC) and PIMCO New York Municipal Income Fund III (NYSE:PYN) (the "Funds") today announced their results for the fiscal quarter ended December 31, 2008. The Funds' are closed-end management investment companies. The investment objective of each Fund is to provide current income exempt from federal income tax. California Municipal Income Fund III also seeks to provide current income exempt from California state income taxes. New York Municipal Income Fund III also seeks to provide current income exempt from New York state and city income taxes.

                    California Municipal         New York Municipal
                         Income III                  Income III
                         ----------                  ----------
                       At December 31,             At December 31,
                       ---------------             ---------------
                     2008          2007          2008          2007
                     ----          ----          ----          ----
  Net
   Assets (a)    $334,811,008  $486,060,315   $86,352,978  $124,681,797
  Common Shares
   Outstanding     21,604,723    21,541,693     5,517,633     5,517,633
  Net Asset
   Value ("NAV")        $6.93        $13.98         $7.13        $14.08
  Market Price          $6.17        $13.29         $6.08        $12.85
  Discount
   to NAV            (10.97)%       (4.94)%      (14.73)%       (8.74)%
 
 
                 Quarter ended December 31,  Quarter ended December 31,
                 --------------------------  --------------------------
                    2008          2007          2008          2007
                    ----          ----          ----          ----
  Net Investment
   Income (b)      $5,458,655    $6,685,663    $1,204,281    $1,566,955
  Per Common
   Share (b)            $0.25         $0.31         $0.22         $0.28
  Net Realized
   and Change in
   Unrealized
   Loss (b)      $(92,085,030) $(12,104,066) $(24,039,473)  $(3,000,213)
  Per Common
   Share (b)           $(4.26)       $(0.56)       $(4.36)       $(0.54)
 
  Undistributed
   Net Investment
    Income Per
    Common Share
    (c)(d)            $0.1414       $0.0560       $0.1645       $0.0480
 
 
 

(a) Net assets are inclusive of market value of Preferred Shares of $185 million and $47 million for California Municipal Income III and New York Municipal Income III, respectively. California Municipal Income III redeemed $60 million of its Preferred Shares beginning January 7, 2009 and concluding January 9, 2009. New York Municipal Income III redeemed $15 million of its Preferred Shares on January 6, 2009.

(b) The information provided is in accordance with generally accepted accounting principles ("GAAP"), which requires the Funds to treat amounts accrued under swap agreements as net realized and unrealized gain (loss). However, these amounts are treated as net income (loss) for federal income tax purposes. By using GAAP, for the fiscal quarter ended December 31, 2008, Net Investment Income for California Municipal Income III was $10,299 ($0.0005 per common share) higher (and Net Realized and Change in Unrealized Loss correspondingly higher) than those figures would have been if swap amounts were treated as net income in accordance with federal income tax treatment. By using GAAP, for the fiscal quarter ended December 31, 2008, Net Investment Income for New York Municipal Income III was $3,172 ($0.0006 per common share) higher (and Net Realized and Change in Unrealized Loss correspondingly higher) than those figures would have been if swap amounts were treated as net income in accordance with federal income tax treatment.

(c) Note that generally there is a close correlation between what the Funds earn (net of expenses) and what they pay in monthly dividends. However, since net earning rates fluctuate from month to month while monthly dividends have remained relatively stable, there will be periods when the Funds may over-earn or under-earn their monthly dividend which would have the effect of adding to or subtracting from the Funds' undistributed net investment income balances. The Funds' management analyzes current and projected net earning rates prior to recommending dividend amounts to the Funds' Board of Trustees for declaration. There can be no assurance that the current dividend rates or the undistributed net investment income balances will remain constant.

(d) Calculated using the accumulated balance at December 31, 2008 and December 31, 2007, respectively.

Allianz Global Investors Fund Management LLC, 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 (NYSE:AZ). Pacific Investment Management Company LLC, an Allianz Global Investors Fund Management affiliate, serves as the Funds' sub-adviser.

The Funds' daily New York Stock Exchange closing prices, net asset values per share, as well as other information, is available at http://www.allianzinvestors.com/closedendfunds or by calling the Funds' shareholder servicing agent at (800) 331-1710.

The financial information contained herein is solely based upon the data available at the time of publication of this press release, and there is no assurance that any future results will be the same or similar to the results reported herein. Information that was obtained from third party sources we believe to be reliable is not guaranteed as to its accuracy or completeness. This press release contains no recommendations to buy or sell any specific securities and should not be considered investment advice of any kind. Past performance is no guarantee of future results and the investment returns generated by the Funds' will fluctuate. There can be no assurance that the Funds will meet their objectives. The Funds' ability to pay dividends to common shareholders is subject to the restrictions in their registration statements, by-laws and other governing documents as well as the Investment Company Act of 1940. In making an investment decision, individuals should utilize other information sources and the advice of their own professional adviser.

CONTACT: PIMCO Closed-End Funds

Financial Advisors: (800) 628-1237

Shareholders: (800) 285-4086

Media Relations: (212) 739-3501