PIMCO Advisors Fund Management LLC:

-0- *T

PIMCO MUNICIPAL INCOME FUND, PIMCO CALIFORNIA MUNICIPAL INCOME

FUND, PIMCO NEW YORK MUNICIPAL INCOME FUND, PIMCO MUNICIPAL INCOME

FUND II, PIMCO CALIFORNIA MUNICIPAL INCOME FUND II, PIMCO NEW YORK

MUNICIPAL INCOME FUND II, PIMCO MUNICIPAL INCOME FUND III, PIMCO

CALIFORNIA MUNICIPAL INCOME FUND III, PIMCO NEW YORK MUNICIPAL INCOME

FUND III, PIMCO CORPORATE INCOME FUND, PIMCO CORPORATE OPPORTUNITY

FUND, PIMCO HIGH INCOME FUND, PIMCO FLOATING RATE INCOME FUND,

NICHOLAS-APPLEGATE CONVERTIBLE & INCOME FUND, NICHOLAS-APPLEGATE

CONVERTIBLE & INCOME FUND II, MUNICIPAL ADVANTAGE FUND INC. *T

¶ On February 12, 2004, the staff of the Securities and Exchange Commission (the “Commission”) informed PIMCO Advisors Fund Management LLC (“PAFM”), the investment manager of each of the closed-end funds listed above (the “Funds”), that it intended to recommend that the Commission bring civil and administrative actions against PAFM and an affiliate of PAFM seeking a permanent injunction against violations of certain provisions of the federal securities laws, disgorgement plus prejudgment interest and civil penalties in connection with the Commission staff’s investigation of “market timing” and related trading activities involving certain open-end investment companies advised by PAFM. There is a substantial likelihood that the Commission will bring these actions. On February 17, 2004, the Attorney General of the State of New Jersey filed a complaint alleging, among other things, that Pacific Investment Management Company LLC (“PIMCO”), the sub-adviser to the “PIMCO” Funds listed above, and certain affiliates of PIMCO, had failed to disclose that they improperly allowed certain hedge funds to engage in “market timing” in certain open-end investment companies advised by PIMCO and the affiliated companies. On February 20, 2004, PAFM, PIMCO, Nicholas-Applegate Capital Management LLC (“NACM”), the sub-adviser to the “Nicholas-Applegate” Funds listed above, Oppenheimer Capital LLC (“OpCap”), the parent company of the sub-adviser to Municipal Advantage Fund (“MAF”), the Funds (with the exception of MAF) and certain of their affiliates have also been named as defendants in a putative class action lawsuit filed in the U.S. District Court, District of New Jersey, relating to the same circumstances that are the subject of these regulatory proceedings. The lawsuit seeks unspecified compensatory damages. ¶ In November 2003, the Commission settled an enforcement action against an unaffiliated broker-dealer relating to the undisclosed receipt of fees from certain mutual fund companies in return for preferred marketing of their funds and announced that it would be investigating mutual funds and their distributors generally with respect to compensation arrangements relating to the sale of mutual fund shares. In that connection, PAFM, PIMCO, NACM and certain of their affiliates are under investigation by the Commission relating to directed brokerage and revenue-sharing arrangements involving open-end investment companies they advise. These entities and certain of their affiliates have also been named as defendants in a putative class action lawsuit that challenges the brokerage arrangements of open-end investment companies advised by these entities, including revenue sharing arrangements. The complaint, filed in U.S. District Court, District of Connecticut, on February 17, 2004, generally alleges that the investment adviser inappropriately used assets of these open-end investment companies to pay brokers to promote the investment companies by directing brokerage transactions to such brokers, and did not fully disclose such arrangements to shareholders. The lawsuit seeks unspecified compensatory damages. In addition, the Attorney General of the State of California has publicly announced an investigation into the matters referenced above. ¶ Neither the market timing nor revenue sharing investigations and regulatory proceedings described above involve or directly relate to the Funds or trading in their shares. ¶ Although it is not possible to predict what, if any, effect the foregoing will have on the market for shares of the Funds, PAFM, PIMCO, NACM and OpCap have notified the Funds that they do not believe that these developments will have a material adverse effect on their ability to perform their respective advisory services to the Funds. ¶ The Funds daily New York Stock Exchange closing prices, net asset values per share as well as other information is available at www.pimcoadvisors.com or by calling 1-800-331-1710.

¶ Certain statements in this release constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Funds to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. As a result of the foregoing and other factors, no assurance can be given as to such future results, levels of activity or achievements, and neither the Funds, PAFM, PIMCO, NACM and OpCap nor any other person assumes responsibility for the accuracy and completeness of such statements.