NEW YORK, Feb. 26, 2009 (GLOBE NEWSWIRE) -- Nicholas-Applegate Convertible & Income Fund (NYSE:NCV) and Nicholas-Applegate Convertible & Income Fund II (NYSE:NCZ) (the "Funds") may be required to delay the payment of previously declared dividends on the Funds' common shares, as well as the declaration of their next scheduled common share dividends.

The Funds are not permitted to pay or declare common share dividends unless the Funds' auction rate preferred shares ("ARPS") have asset coverage of at least 200% ("200% Level") after the payment or the declaration of the common share dividend, in accordance with the Funds' By-laws and the Investment Company Act of 1940, as amended. Continued severe market disruptions have caused the value of the Funds' portfolio securities to decline, and as a result the Funds' asset coverage ratios have fallen below the 200% Level.

If a Fund does not have asset coverage of at least the 200% Level on March 2, 2009, that Fund will have to postpone the payment of its previously declared February 2009 common share dividend and the declaration of its March 2009 dividend until the Fund's asset coverage ratio is at or above the 200% Level. Depending on market conditions, these coverage ratios may increase or decrease further. An announcement regarding actual dividend payment and declaration dates will be made at a future date.

The Funds' investment objective is to provide total return through a combination of capital appreciation and high current income. There can be no assurance that the Funds will achieve their stated objectives.

Allianz Global Investors Fund Management LLC, an indirect, wholly-owned subsidiary of Allianz Global Investors of America L.P., serves as the Funds' 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 Funds' sub-adviser.

The Funds' daily New York Stock Exchange closing prices and net asset values per share are available by calling the Funds' shareholder servicing agent at (800) 331-1710. This information, as well as updated portfolio statistics and performance, is available at http://www.allianzinvestors.com.

Statements made in this release that look forward in time involve risks and uncertainties and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such risks and uncertainties include, without limitation, the adverse effect from further declines in the securities markets and in the Funds' performance, a general downturn in the economy, competition from other companies, changes in government policy or regulation, inability to attract or retain key employees, inability to implement its operating strategy and/or acquisition strategy, and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations. The Funds' ability to maintain leverage and to declare and pay dividends to common shareholders is subject to the restrictions in their registration statements, By-laws and other governing documents.