PIMCO Commercial Mortgage Securities Trust, Inc. Fourth Quarter investment performance results and statistical portfolio information

Newport Beach, California, UNITED STATES

NEWPORT BEACH, Calif., Jan. 23, 2004 (PRIMEZONE) -- PIMCO Commercial Mortgage Securities Trust, Inc. (NYSE:PCM) today released its investment-performance results and statistical portfolio information for the period October 1, 2003 through December 31, 2003 (fourth quarter).

PIMCO Commercial Mortgage Securities Trust, Inc. ("PCM" or 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 $373 billion of assets under management as of December 31, 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 12/31/03

                        3      6      1       3       5        10
                       Mos    Mos    Year  Years(1) Years(1)  Years(1)
 PCM Based on
  Net Asset Value (%)  2.60   2.91   7.03   9.55      8.27    8.69

 PCM Based on
  NYSE Share Price (%) 3.84   6.45   9.76  15.01     11.13    10.49

 Lehman Aggregate
  Index (%)            0.32   0.17   4.10   7.57      6.62    6.95

 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
 ------------              ----------------           ---------------
  12/31/2003                     $14.53                     $12.53
   9/30/2003                     $14.27                     $12.49
  12/31/2002                     $14.32                     $12.80

    Date                        Premium/(Discount) to Net Asset Value
    ----                        -------------------------------------
 12/31/2003                                     15.96%
  9/30/2003                                     14.25%
 12/31/2002                                     11.88%

                         Dividend Information

 Regular monthly dividend per share:                         $0.09375
 Total dividends declared in the quarter:                    $0.28125
 Total dividends declared for calendar 2003:        $1.1250 (see Note)
 Annualized dividend yield at 12/31/03
  based on NYSE share price:                                    7.74%
 Annualized dividend yield at 12/31/03
  based on net asset value:                                     8.98%
 Note: The Fund did not declare a special dividend in 2003.

                         Portfolio Statistics

  The Fund's investment portfolio had the following characteristics
  as of December 31, 2003:

 Net Assets:             $139.8 million
 Average Duration:       4.4 years
 Average Maturity:       5.3 years
 Quality Ratings:        49% AAA, 6% AA, 8% A, 20% BBB, 14% BB,
                         2% B, 1% less than B
 Average Quality:        A-
 Sector Weightings:      34.9% Multi-Family (apartment buildings),
                         1.9% Healthcare (hospitals and nursing
                         care facilities), 6.9% Hospitality (hotels
                         and motels), 37.2% Multi-Class (a mix of
                         all commercial property types, including
                         office buildings and industrial
                         properties), 9.8% Real Estate ABS, 3.5%
                         Commercial Paper, 5.8% Other, 0% Corporate
 % Leverage (12/31/03):  33% (The Fund's use of leverage is subject
                         to change at any time.)

Market Commentary

During the fourth quarter, the Fund's portfolio of commercial mortgage-backed securities ("CMBS") posted a 2.60% return based on net asset value and a 3.84% 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 0.32% for the same period. The Fund maintained an uninterrupted and constant dividend throughout 2003, holding the monthly per share rate steady at $0.09375. These dividend payouts equate to an annualized dividend yield of 7.74% based on the Fund's NYSE trading price as of December 31, 2003. The Fund did not declare a special dividend in 2003.

Most bonds posted positive returns in the fourth quarter, capping a year in which fixed income assets gained ground despite volatile interest rates. The Lehman Brothers Aggregate Bond Index returned 0.32% for the quarter and 4.10% for the year.

Although Treasury yields rose only 0.20% to 0.50% for the year, bond markets were far from calm. For instance, yields moved lower through the first half of the year as deflation risks dominated the news and the market's view of future Federal Reserve policy. The Fed cut the federal funds rate to 1% in June and the 10-year Treasury yield plunged to a 45-year low near 3%. Rates then reversed course dramatically, jumping more than 1.3% during June and July, and ending July 0.89% higher.

This reversal was prompted by technical factors in the Treasury market, and also by investors' growing confidence that growth would accelerate. Economic performance in the second half of the year met investors' expectations. Business investment revived, while massive fiscal stimulus and the lagged impact of the mortgage refinancing boom sustained consumption, which led to an 8.2% annualized growth in the third quarter, which was the fastest pace in almost two decades. The 10-year Treasury yield finished the year at 4.25%, up 0.43% for the whole year.

Commodity prices surged in 2003 as growth revived, while the dollar plunged against most major currencies amid concern about the U.S. trade deficit. Despite these trends, inflation was well behaved overall, which limited the rise in interest rates. In a global economy where human resources and innovation are more important than ever for boosting output, slack labor markets and gains in labor productivity allowed companies to absorb higher prices of physical inputs without raising prices.

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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