Nicholas-Applegate Convertible & Income Fund II Reports Results for the Fiscal Quarter and Nine Months Ended November 30, 2008


NEW YORK, Feb. 9, 2009 (GLOBE NEWSWIRE) -- Nicholas-Applegate Convertible & Income Fund II (the "Fund") (NYSE:NCZ), a closed-end management investment company which seeks to provide total return through a combination of capital appreciation and high current income, today announced its results for the fiscal quarter and nine months ended November 30, 2008.


                                            At November 30,
                                            ---------------           
                                       2008                  2007
                                       ----                  ----
 Net Assets (a)                   $620,171,569        $1,345,204,601
 Common Shares Outstanding          59,587,332            59,308,389
 Net Asset Value ("NAV")                 $4.70                $14.17
 Market Price                            $3.20                $13.02
 Discount to NAV                        (31.91)%               (8.12)%
                           
                                       Quarter ended November 30,
                                       --------------------------
                                       2008                  2007
                                       ----                  ----
 Net Investment Income (b)         $20,596,622           $24,964,878
 Per Common Share  (b)                   $0.34                 $0.42
 Net Realized and Change in                         
  Unrealized Loss (b)            $(376,745,746)          $(5,501,557)
 Per Common Share (b)                   $(6.32)               $(0.10)
 Undistributed Net Investment                       
  Income Per Common Share (c)          $0.1795               $0.3634
                                                  
                                     Nine Months ended November 30,
                                     ------------------------------
                                       2008                  2007
                                       ----                  ----
 Net Investment Income (b)         $74,785,439           $79,726,318
 Per Common Share (b)                    $1.25                 $1.34
 Net Realized and Change in                        
  Unrealized Loss (b)            $(464,207,243)         $(41,258,071)
 Per Common Share (b)                   $(7.79)               $(0.70)

 (a) Net assets are inclusive of market value of Preferred Shares of
     $340 million. The Fund redeemed $66 million of Preferred Shares
     from December 26, 2008 through December 31, 2008.

 (b) Net Investment Income for the fiscal quarter and nine months
     ended November 30, 2008 includes amortization of market premium
     of $3,154,148 ($0.05 per common share) and $4,146,673 ($0.07 per
     common share), respectively. Net Investment Income for the 
     fiscal quarter and nine months ended November 30, 2007 includes
     amortization of market premium of $967,716 ($0.02 per common
     share) and $3,576,775 ($0.06 per common share), respectively. 
     For tax purposes, the Fund has elected not to amortize market 
     premium on corporate bonds.

     The information provided is in accordance with generally accepted
     accounting principles ("GAAP"), which requires the Fund to treat
     amounts received under interest rate cap agreements as net
     realized gain (loss). However, these amounts are treated as net
     income (loss) for federal income tax purposes. By using GAAP, Net
     Investment Income for the fiscal quarter and nine months ended
     November 30, 2007 was $3,199,316 ($0.05 per common share) and
     $9,089,860 ($0.15 per common share) lower, respectively (and Net 
     Realized and Change in Unrealized Loss correspondingly lower) 
     than those figures would have been if payments received from 
     interest rate cap agreements were treated as net income in 
     accordance with federal income tax treatment. The Fund did not 
     engage in interest rate cap agreement transactions during the 
     fiscal period ended November 30, 2008.

 (c) Calculated using the accumulated balance at November 30, 2008 and
     November 30, 2007, respectively.

 (d) 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 over-earn or
     under-earn its monthly dividend, which would have the effect of 
     adding to or subtracting from the Fund's undistributed 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 net investment income balance will remain constant.
     These figures are inclusive of amounts received under interest 
     rate cap agreements, in accordance with federal income tax 
     treatment and excludes the amortization of market premium on 
     corporate bonds.

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). Nicholas-Applegate Capital Management 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. There can be no assurance that the Fund will meet its objective. The Fund's 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 any investment decision, individuals should utilize other information sources and the advice of their own professional adviser.


            

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