PIMCO Commercial Mortgage Securities Trust, Inc.; Second Quarter Investment Performance Results and Statistical Portfolio Information

Newport Beach, California, UNITED STATES


NEWPORT BEACH, Calif., July 31, 2003 (PRIMEZONE) -- PIMCO Commercial Mortgage Securities Trust, Inc. (NYSE:PCM) today released its investment performance results and statistical portfolio information for the period April 1, 2003 through June 30, 2003 (second quarter).

PIMCO Commercial Mortgage Securities Trust, Inc. (the "Fund") is a closed-end bond fund that invests principally in commercial mortgage-backed securities ("CMBS"). The primary investment objective of the Fund is to achieve high current income, with capital gain from the disposition of investments as a secondary objective. Pacific Investment Management Company LLC ("PIMCO"), an investment adviser with more than $348 billion of assets under management as of June 30, 2003, is responsible for managing the Fund's investment portfolio.



      Investment Performance, Price and Dividend Information

     The Fund's valuation and investment performance information
                        are as follows:

 Performance for the periods
  ended 06/30/03
                                    3      6      1       3       5
                                   Mos    Mos    Year   Years1  Years1
 PCM Based on Net Asset Value (%)  1.98   4.00   9.38   10.86    8.02

 Based on NYSE Share Price (%)     3.13   3.10   8.02   16.32   11.23

 Lehman Aggregate Index (%)        2.50   3.93  10.40   10.08    7.55

 1 Annualized

The Fund's total return investment performance is net of all fees and expenses and assumes the reinvestment of dividends.



                                            Price Information
       Pricing Date                NYSE Share Price   Net Asset Value
       ------------                ----------------   ---------------
        06/30/2003                      $14.20            $12.74
        03/31/2003                      $14.32            $12.80
        06/30/2002                      $14.49            $12.98

            Date                 Premium/(Discount) to Net Asset Value
            ----                 -------------------------------------
         06/30/2003                           11.46%
         03/31/2003                           11.88%
         06/30/2002                           11.63%

                                   Dividend Information
                                   --------------------
      Regular monthly dividend
        per share:                                           $0.09375
      Total dividends declared
        in the quarter:                                      $0.28125
      Annualized dividend yield
        at 6/30/03 based on NYSE
        share price:                                          7.92%
      Annualized dividend yield
        at 6/30/03 based on net
        asset value:                                          8.83%

                        Portfolio Statistics
        The Fund's investment portfolio had the following
                  characteristics as of June 30, 2003:

 Net Assets:        $144.6 million
 Average Duration:  4.41 years
 Average Maturity:  5.66 years
 Quality Ratings:   44% AAA, 10% AA, 7% A, 20% BBB, 16% BB,
                     3% B, 0% less than B
 Average Quality:   A
 Sector Weightings: 28.6% Multi-Family (apartment buildings),
                    7.6% Healthcare (hospitals and nursing
                    care facilities), 9.1% Hospitality (hotels
                    and motels), 38.1% Multi-Class (a mix of
                    all commercial property types, including
                    office buildings and industrial
                    properties), 7.4% Real Estate ABS, 0.4%
                    Commercial Paper, 8.7% Other, 0.1% Corporate

                          Market Commentary

Financial assets gained during the first half of 2003 amid a revival of risk appetites as anxiety about the war in Iraq faded. Assets that generally benefit from economic growth, such as stocks, corporate bonds and emerging-market debt, fared the best for the quarter and year-to-date as investors returned to these sectors in anticipation of a recovery in the second half of 2003.

Reflationary forces that investors expected to fuel a rebound included federal tax cuts and a weak dollar, as well as low borrowing rates that eased the burden of high personal and corporate indebtedness. Low mortgage rates kept refinancings booming in the second quarter and put money in consumers' pockets. Corporate bond yields were so low that well-known companies such as General Electric and Wal-Mart could borrow for five years at less than 3%.

Treasuries lagged their riskier counterparts but still enjoyed a modest rally. Yields fell to levels not seen in 45 years early in the quarter before bouncing off their lows in June as hopes for recovery increased. The yield on the benchmark 10-year Treasury closed the quarter 0.28% lower at 3.52%, after nearing 3% earlier in the period. Buyers were encouraged that inflation would remain tame amid low capacity utilization and weak employment growth. Asian central banks bought Treasuries to limit the rise in their currencies versus the dollar in an effort to protect their export industries.

Late in the quarter, the Federal Reserve cut the federal funds rate by 0.25% to 1%, its 13th easing since 2001, in an effort to boost the economy and ward off deflation. Although the cut was less than markets expected, the central bank suggested that rates would stay low until deflation risks abated.

The Fund's portfolio of commercial mortgage backed securities ("CMBS") posted a 1.98% return for the second quarter based on net asset value and a 3.13% return based on its NYSE share price. In comparison, the Lehman Brothers Aggregate Bond Index (which includes Treasury, investment-grade corporate and residential mortgage-backed securities) returned 2.50% for the same period. The Fund maintained an uninterrupted and constant dividend throughout the quarter, holding the monthly per share rate steady at $0.09375. These dividend payouts equate to an annualized dividend yield of 7.92% based on the Fund's NYSE trading price as of June 30, 2003.

For further information, please contact Jeff Sargent, PIMCO Commercial Mortgage Securities Trust, Inc., at (949) 720-4712.

Past performance is no guarantee of future results. Investment return, dividend rate and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost.



        

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