PIMCO Creates Next-Generation Retirement Solutions for Defined Contribution Plans

NEWPORT BEACH, CA--(Marketwire - April 2, 2008) - With the U.S. retirement system undergoing fundamental changes, individuals increasingly face the task of asset allocation in their retirement portfolios. PIMCO, a leading investment management firm and provider of retirement solutions, announced today that it is launching PIMCO RealRetirement™ Funds, a series of funds that are intended to help retirees stay ahead of inflation by maximizing their purchasing power.

PIMCO RealRetirement™ Funds are "target date" funds, which automatically rebalance portfolios as they move toward the investor's expected retirement date. These funds are becoming a key component of most defined contribution (DC) plans, such as 401(k)s, because they give investors the option to have their asset allocation professionally managed.

"Unlike many of the target date products in the market today, PIMCO's retirement solutions focus on facilitating adequate retirement purchasing power, which is the primary success factor of many plan sponsors," said Stacy Schaus, senior vice president and PIMCO's Defined Contribution Practice Leader. "An additional important element to PIMCO's approach is reducing volatility by incorporating a broader range of asset classes, especially as the fund moves closer to its target date."

PIMCO's retirement solutions differ from many older and less diversified types of target date funds, which have been highly concentrated in equities even as they approach the retirement date, when investors are less tolerant to the risk and volatility inherent in many equity strategies. In contrast, PIMCO's RealRetirement™ Funds incorporate real assets -- Treasury Inflation-Protected Securities ("TIPS"), commodities, and real estate -- which seek to help investors grow their wealth while maintaining purchasing power.

Recent weakness in equities, which historically have not reliably outpaced inflation and can be volatile, has provided a potent stress test for many equity-focused target date funds, and has highlighted the importance of understanding the differences between investment managers and their respective investment philosophies.

The approach in the PIMCO RealRetirement Funds™ incorporates PIMCO's rigorous risk management strategies as well as a retirement "glide path," PIMCO's allocation process that adjusts the risk profile of the portfolio over time. The glide path approach aims to maximize real return and capital preservation during the accumulation years and to produce reliable income during the retirement years.

The five PIMCO RealRetirement™ Fund are differentiated by target retirement dates for 2010, 2020, 2030, 2040, and 2050. Each fund of funds contains allocations of various PIMCO Funds that include or have exposure to domestic and international securities as well as real assets such as TIPS, real estate and commodities.

Meeting the Objectives of DC Plans and Participants

The PIMCO RealRetirement™ Funds are designed to help defined contribution plan sponsors assist their participants in addressing a number of key issues, including:

--  Meeting their retirement income goals,
--  Reducing volatility along the way, and
--  Protecting them from inflation.
    

"PIMCO's RealRetirement Funds differ from products in the market today because of our focus on reducing risk, particularly from inflation," Ms. Schaus added. "We believe PIMCO's RealRetirement Funds are attractive for sponsors of defined contribution retirement plans who focus on retirement income replacement."

About PIMCO

With more than $746 billion assets under management, PIMCO is one of the world's leading fund-management companies. Founded in 1971 and based in Newport Beach, California, the company is owned by Allianz Global Investors, a subsidiary of the Munich-based Allianz Group, a leading global insurance company with nearly $1.5 trillion in assets and represented in 70 countries around the globe.

Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the funds 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. The funds invest in other PIMCO funds and performance is subject to underlying investment weightings, which will vary. 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. The cost of investing in the Funds will generally be higher than the cost of investing in a fund that invests directly in individual stocks and bonds. The Funds are non-diversified, which means that they may concentrate their assets in a smaller number of issuers than a diversified fund.

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-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.

Contact Information: Contact: Steven Vames PIMCO Marketing Communications Email: Phone: +1 212.739.3598