By Un-tethering from Benchmark, Fund Combines Traditional Characteristics of Core Bond Fund with Potential for Higher Returns

Contact:
Steven Vames, PIMCO Marketing Communications
Email: Steven.Vames@PIMCO.com
Phone: +1 212.739.3598

Newport Beach, California (July 8, 2008) – PIMCO, a leading investment management firm, announced today that it has launched the PIMCO Unconstrained Bond Fund (UBF), which puts the firm’s proven investment process to work for clients in a fund that is not tethered to benchmark-specific guidelines. The UBF is managed by PIMCO Managing Director and Portfolio Manager Chris Dialynas.

“The underlying strategy of the UBF provides greater scope to adjust duration exposure, allocate across sectors, express our active views and tap into our global fixed income toolkit beyond what is possible with benchmark-oriented funds. Our approach to the UBF will be governed by PIMCO’s investment philosophy and disciplined secular process, and we believe the UBF will benefit from the depth of the firm’s expertise as well as our rigorous focus on risk management,” said Mr. Dialynas.

Key features of the UBF include:

• Offer traditional characteristics of a core bond fund such as limited downside risk, low correlation with equities, liquidity and diversification 
• Potential to outperform traditional active fixed-income management approaches where the manager may be expected to limit tracking error relative to a benchmark
• May invest in derivative instruments such as options, futures contracts or swap agreements 
• May invest in mortgage and asset-backed securities 
• May invest in securities denominated in foreign currencies 
• Up to 50% of assets of the UBF can be invested in securities and instruments economically tied to emerging market countries 
• Up to 40% of assets of the UBF can be invested in high yield corporate bonds

The launch of the unconstrained bond fund is another natural extension of PIMCO’s proven track record in active fixed income management. Like all PIMCO products, the fund is guided by PIMCO’s unique secular investment process, which focuses on long-term economic, social and political trends that may have lasting impacts on investment returns. Moreover, over shorter cyclical time frames, the unconstrained nature of the fund allows PIMCO to take on more risk when PIMCO identifies tactical opportunities, and it allows for reduction and diversification of risk at times when the outlook may be challenging for traditional fixed income benchmarks.

The ticker symbol for the PIMCO Unconstrained Bond Fund is PFIUX.

About PIMCO
PIMCO, founded in 1971, is a global asset management firm serving a full range of institutional and retail investors worldwide. Our reputation as one of the world’s top asset managers rests on our combination of a long-term investment approach, superior client servicing and cutting edge technology. With offices in nine countries in North America, Europe and Asia, we manage investments across a full spectrum of global financial markets. Our success is built on our goal of consistently providing attractive returns while maintaining a strong culture of risk management and long-term discipline. PIMCO is owned by Allianz Global Investors, a subsidiary of the Munich-based Allianz Group, a leading global insurance company.

Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing.  This and other information are contained in the fund’s prospectus, which may be obtained by contacting your PIMCO representative.  Please read the prospectus carefully before you invest or send money.

Past performance is not a guarantee or a reliable indicator of future results. Investing in the bond market is subject to certain risks including market, interest-rate, issuer, credit, and inflation risk; investments may be worth more or less than the original cost when redeemed. Investing in foreign denominated and/or domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. Mortgage and asset-backed securities may be sensitive to changes in interest rates, subject to early repayment risk, and their value may fluctuate in response to the market’s perception of issuer creditworthiness; while generally supported by some form of government or private guarantee there is no assurance that private guarantors will meet their obligations. High-yield, lower-rated, securities involve greater risk than higher-rated securities. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested.  Diversification does not insure against loss.

Except for the historical information and discussions contained herein, statements contained in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the performance of financial markets, the investment performance of PIMCO's sponsored investment products and separately managed accounts, general economic conditions, future acquisitions, competitive conditions and government regulations, including changes in tax laws. Readers should carefully consider such factors. Further, such forward-looking statements speak only on the date at which such statements are made. PIMCO undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.

This press release has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Pacific Investment Management Company LLC. ©2008, PIMCO.

PIMCO Funds are distributed by Allianz Global Investors Distributors LLC, 840 Newport Center Drive, Newport Beach, CA 92660.