PIMCO Municipal Income Fund III Reports Results for the Fiscal Quarter and Six Months Ended March 31, 2006


NEW YORK, May 31, 2006 (PRIMEZONE) -- PIMCO Municipal Income Fund III (the "Fund") (NYSE:PMX), a closed-end management investment company that seeks to provide current income exempt from federal income tax, today announced its results for the fiscal quarter and six months ended March 31, 2006.



                                               At March 31,
                                         2006              2005
                                         ----              ----
 Net Assets (a)                      $728,764,920      $724,829,161
 Common Shares Outstanding             31,251,831        31,070,025
 Net Asset Value ("NAV")                   $14.68            $14.64
 Market Price                              $14.73            $14.30
 Premium (Discount) to NAV                  0.34%             (2.32)%

                                            Quarter ended March 31,
                                         2006               2005
                                         ----               ----
 Net Investment Income                 $8,866,111        $8,879,948
 Per Common Share                           $0.28             $0.29
 Net Realized and Change
  in Unrealized Gain                   $3,347,653        $2,566,345
 Per Common Share                           $0.11             $0.08
 3 Month Average Undistributed
  (Overdistributed) Net
   Investment Income Per
   Common Share (b)                      $(0.0506)          $0.0263

 (a) Net assets are inclusive of market value of Preferred Shares
     issuance of $270 million.

 (b) Calculated using the month-end balances for the three months
     ended March 31, 2006. Please note that generally there is a close
     correlation between what the Fund earns (net of expenses) and
     what it pays 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 Fund
     may modestly over-earn or under-earn its monthly dividend, which
     would have the effect of adding to or subtracting from the Fund's
     undistributed (overdistributed) net investment income balance.
     Fund management analyzes the Fund's current and projected net
     earning rates prior to recommending dividend amounts to the
     Fund's Board of Trustees for declaration. There can be no
     assurance that the current dividend rate or the undistributed
     (overdistributed) net investment income balance will remain
     constant.

                                        Six Months ended March 31,

                                           2006                2005
                                          -----                ----
 Net Investment Income                $17,614,494       $17,867,034
 Per Common Share                           $0.56             $0.58
 Net Realized and Change
  in Unrealized Gain                     $833,890        $8,594,506
 Per Common Share                           $0.03             $0.27


                             Top 5 State positions at March 31, 2006
                                  (as a % of total investments)
                                  -----------------------------

 Texas                                     %   12.3
 Michigan                                       8.9
 Illinois                                       8.5
 New York                                       8.2
 California                                     7.9

Allianz Global Investors Fund Management LLC, 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). Pacific Investment Management Company LLC, an Allianz Global Investors Fund Management affiliate, serves as the Fund's sub-adviser.

The Fund's daily New York Stock Exchange closing price, net asset value per share, as well as other information, is available at http://www.allianzinvestors.com/closedendfunds or by calling the Fund's 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 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 Fund will fluctuate. In making an investment decision, individuals should utilize other information sources and the advice of their own professional adviser.



            

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