Annual growth exceeding 100% puts PIMCO funds among nation's top 30, managing $26.3 billion on tenth anniversary.

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--May 12, 1997--PIMCO Funds is celebrating its tenth birthday this week as one of its founders is releasing a new book to help investors profit in "tomorrow's post-bull markets."

"We started with two bond funds and $16 million," says Brent R. Harris, chairman of the funds. "Today, we manage $26.3 billion, an annual increase of nearly 110%, offer 37 bond and stock funds and are among the 30 largest fund families in the U.S."

Institutional investors such as pension plans make up nearly 80% of the funds' assets, but a consolidation with two affiliated fund families earlier this year made the funds available to retail investors with a minimum investment of $1,000 through A, B and C class shares. Institutional investors make substantially higher initial investments and pay lower expenses.

"Because of our institutional heritage, our funds are among the industry's largest in assets per investor," Harris added. "More than 80% of our institutional fixed-income funds are ranked among the top 20% for the past 12 months compared to funds with the same investment objectives, according to data from Lipper Analytical Services."

The family's biggest fund, the PIMCO Total Return Fund, is the nation's largest bond fund with assets of more than $13 billion on March 31 this year. That compares with $1.8 billion five years ago and $7.2 billion just two years ago.

Manager of the fund is William H. Gross, known as "the Peter Lynch of bonds," whose just-published book, "Everything You've Heard about Investing is Wrong!" (Times Business/Random House) offers advice for investing in what he calls "the coming era of six percent." Gross is a founder and managing director of Pacific Investment Management Company, which launched the PIMCO Funds and manages its bond funds.

Harris said the family has grown by five bond funds and a balanced fund the past year, including the nation's first inflation-indexed bond fund, the PIMCO Real Return Fund.

The PIMCO Funds are affiliated with PIMCO Advisors L.P. (NYSE:PA), a leading investment management firm with more than $111 billion in assets under management. Its six affiliated investment management firms are widely recognized for providing consistent performance and high quality service for many of the nation's corporate and public pension funds, endowments and foundations. -0- NOTE TO EDITORS: For information on retail funds, please call Phil Neugebauer at 203/352-4986. To receive a review copy of Bill Gross' book or schedule an interview this week in New York, please contact Will Weisser, Times Business/Random House, at 212/572-2872.

CONTACT: Walker & Sanson Communications Group

Mike Walker or Dave Sanson

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