Fitch Affirms Nicholas-Applegate Convertible & Income Fund II's Pfd Shares.

NEW YORK -- Fitch Ratings affirms the ratings on the following Nicholas-Applegate Convertible & Income Fund II auction preferred shares,

-- Auction Preferred Shares 4,040 shares series A, 'AAA';

-- Auction Preferred Shares 4,040 shares series B, 'AAA';

-- Auction Preferred Shares 4,040 shares series C, 'AAA';

-- Auction Preferred Shares 4,040 shares series D, 'AAA';

-- Auction Preferred Shares 4,040 shares series E, 'AAA'.

The affirmation is based on the fund's consistent compliance with asset coverage and preferred share basic maintenance amount tests, as well as the quality and experience of the asset manager.

Nicholas-Applegate Convertible & Income Fund II (NYSE:NCZ) is a closed-end management investment company, which invests principally in convertible securities and high-yield debt. The fund is registered under the Investment Company Act of 1940, which permits closed-end funds to borrow funds through the issuance of debt and preferred stock. Under the 1940 Act, closed-end funds may borrow up to 50% of the fund's value through the issuance of preferred shares and debt. The fund's current preferred share issuance equates to roughly 37% of its net asset value and the fund has no outstanding debt.

PA Fund Management LLC, an indirect, wholly-owned subsidiary of Allianz Dresdner Asset Management 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 (NACM) serves as the Fund's sub-adviser and is responsible for managing the fund's portfolio investments. Founded in 1984, NACM currently manages discretionary assets for numerous clients, including investment companies, employee benefit plans, corporations, public retirement systems and unions, university endowments, foundations, and other institutional investors and individuals.

Fitch will continue to monitor and review this transaction for future rating adjustments. Additional deal information and historical data are available on the Fitch Ratings web site at www.fitchratings.com.