SOURCE: PIMCO

November 09, 2007 13:10 ET

PCM Fund, Inc. Quality Calculation Methodology Change

NEWPORT BEACH, CA--(Marketwire - November 9, 2007) - PCM Fund, Inc., (NYSE: PCM) (the "Fund"), a closed-end investment company investing primarily in commercial mortgage-backed securities, announced today that it has refined its quality calculation methodology for the Fund's statistics as of September 30, 2007.

There are several different methods that can be used to calculate the Fund's Quality Breakdown and Average Quality. In an on-going effort to present information that best represents the composition and risks of the portfolio, the Fund has elected to refine its Quality statistics to better capture the use of derivatives contracts. As a result, the Fund will now report the Quality Breakdown based upon the value of total securities held, plus the unrealized gain or loss on swaps held. The unrealized gain or loss on swaps reflects the contribution of swaps to the default risk profile of the Fund. Average Quality will be based upon the value of total securities held, plus swaps and futures contracts at notional value, plus the unrealized gain or loss on swaps and futures contracts held. The notional value of swaps and futures contracts has been added to more fully reflect the impact of these instruments on the potential volatility of the Fund.

Based on this refinement, the monthly Quality statistics for the Fund since 3/31/07 are as follows:

                                                             Less   Average
Date           AAA     AA       A      BBB     BB       B   Than B  Quality

3/31/2007      -5%      9%     21%     43%     13%     14%      5%     BA+
4/30/2007      -5%      9%     21%     43%     13%     14%      5%     BA+
5/31/2007      -2%     11%     17%     42%     13%     14%      5%     BA+
6/30/2007      -4%     10%     17%     45%     13%     14%      5%     BA+
7/31/2007      -4%     10%     17%     45%     13%     14%      5%      BA
8/31/2007      -5%     11%     16%     46%     13%     14%      5%     BA-
9/30/2007      -1%     10%     14%     45%     13%     14%      5%     BA+

Pacific Investment Management Company LLC ("PIMCO"), an investment adviser with approximately $720 billion of assets under management as of September 30, 2007, is responsible for managing the Fund's investment portfolio.

For further information, please contact Mick Willemsen, PCM Fund, Inc., at (949) 720-4734.

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