Alleghany Asset Management to Purchase Blairlogie Capital Management.

CHICAGO and NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Oct. 26, 1998--Alleghany Asset Management, Inc. and PIMCO Advisors Holdings L.P. (NYSE: PA) announced today that they have reached a definitive agreement for the sale of Blairlogie Capital Management to Alleghany Asset Management. The sale is contingent on a number of regulatory and other standard conditions, including the approval of Blairlogie's clients. PIMCO Advisors and Alleghany Asset Management plan to complete the transaction by the end of the first quarter 1999.

Blairlogie is an Edinburgh, Scotland-based investment manager which currently manages approximately $800 million in assets, principally in non-U.S. equities. Alleghany Asset Management is a wholly-owned subsidiary of Alleghany Corporation (NYSE:Y).

Stuart Bilton, President of Alleghany Asset Management stated, "We are very pleased to add Blairlogie to our family of money managers. Together with Chicago Trust and Montag and Caldwell, we have a first class group of diversified asset managers. Blairlogie makes a wonderful addition, and we look forward to working with Gavin Dobson, James Smith and the rest of the Blairlogie team."

The transaction represents the successful result of initiatives introduced by Blairlogie management in response to PIMCO Advisors' increasing size and scale, particularly following PIMCO Advisors' acquisition of Oppenheimer Capital last year. Gavin Dobson, Managing Director of Blairlogie commented, "After the Oppenheimer Capital transaction, we approached PIMCO management with our desire to find an environment where we felt we could increase our effectiveness and where distribution could be more focused on Blairlogie products."

PIMCO Advisors' Chief Executive William D. Cvengros added, "This transaction makes sense for everyone - Blairlogie constitutes less than 0.5% of PIMCO Advisors' assets under management and does not fit into PIMCO Advisors' development plans. We wish them well."

As part of the agreement, PIMCO Advisors will recommend to the trustees of PIMCO Funds: Multi-Manager Series that they approve and present to shareholders for approval reorganizations of the PIMCO International Developed Fund and the PIMCO Emerging Markets Fund. These reorganizations would result in the transfer of such funds into newly formed funds in the Alleghany Fund family, with Blairlogie continuing to manage the investment portfolios. PIMCO Advisors will continue as adviser to the PIMCO International Fund, and it is anticipated that it will directly manage that fund following the closing.

Alleghany Corporation is engaged, through its subsidiaries Alleghany Asset Management, Inc., World Minerals Inc. and Underwriters Reinsurance Company in the businesses of investment management, industrial minerals and global insurance and reinsurance. Alleghany Asset Management, through its investment advisory units Montag and Caldwell and Chicago Trust, manages approximately $30 billion in assets for institutional and private clients. Montag and Caldwell and Chicago Trust also advise eight mutual funds for the Alleghany Family of Funds.

PIMCO Advisors is one of the largest investment management companies in the United States with more than $218 billion of assets under management. Its investment advisory units, led by Pacific Investment Management Company and Oppenheimer Capital, are widely recognized for providing consistent performance and high quality service to more than 1,600 institutional clients worldwide, including one-third of the nation's largest 200 corporations. In addition, PIMCO Advisors manages a family of 48 stock and bond mutual funds available to both retail and institutional investors and PIMCO Global, with offices in London, Tokyo, Singapore and Sidney.

This release may contain certain forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual events or results may differ from each Company's expectations.

Past performance is no guarantee of future results. Call or write for a current PIMCO Funds prospectus containing more complete information, including management fees and expenses. Please read it carefully before you invest or send money. PIMCO Funds are distributed buy PIMCO Funds Distributors LLC, member NASD, 2187 Atlantic Street, Stamford, CT 06902, 800-927-4648. The Alleghany Funds are distributed by First Data Distributors, Inc., member NASD, 4400 Computer Drive Westboro, MA 01581. Please call 800-992-8151 for a prospectus with complete information, including fees and expenses.