PIMCO Floating Rate Strategy Fund Pfd Shares Rated 'AAA' by Fitch.

NEW YORK -- The PIMCO Floating Rate Strategy Fund's Auction Market Preferred Shares, series M, T, W, TH and F are rated 'AAA' by Fitch Ratings. The ratings are based on asset coverage and preferred share basic maintenance amount tests, as well as the quality and experience of the asset manager.

The PIMCO Floating Rate Strategy Fund (NYSE: PFN) is a closed-end management investment company, which invests principally in floating rate debt or securities with a duration of one year or less. 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 preferred share issuance. The fund's total leverage from the issuance of preferred shares is approximately 38% of its total assets and it has no outstanding debt.

PA Fund Management LLC (PAFM), formerly PIMCO Funds Advisors LLC, an indirect, majority-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). Allianz is a leading global financial services company. The sub-adviser to the fund, Pacific Investment Management Company LLC (PIMCO), a subsidiary of PAFM is responsible for managing the Fund's portfolio investments on a daily basis. As of September 30, 2004, Allianz Global Investors of America L.P. and its subsidiaries, including PIMCO, had approximately $502 billion in assets under management.

The preferred shares issued on Dec. 20, 2004 are comprised of 3,840 shares of each series, raising an additional $480,000,000 for the fund (before payment of sales load and estimated offering costs).