PIMCO Dynamic Income Fund Declares Initial Monthly Dividend Of 17.7 Cents Per Common Share

The Board of Trustees of the PIMCO Dynamic Income Fund (the "Fund") (NYSE:PDI) announced today that it has declared the Fund's initial monthly dividend of $0.177 per common share. At the Fund's initial offering price of $25.00 per share, this monthly dividend rate represents an annualized distribution yield of approximately 8.50%.

The dividend will be payable on August 1, 2012 to shareholders of record on July 12, 2012 with an ex-dividend date of July 10, 2012. Based on projections through the payable date, it is expected that this distribution will be comprised of net investment income.

Going forward, it is anticipated that the Fund will declare monthly dividends on the first business day of each month with a payment date on the first business day of the following month. The next monthly dividend is expected to be declared on or about August 1, 2012 and be payable on or about September 4, 2012.

Although it does not currently intend to do so, as portfolio and market conditions change, the dividend rate and the Fund's policy to declare dividends monthly could be changed by the Board of Trustees.

The Fund is a registered closed-end investment company. The Fund seeks current income as a primary objective and capital appreciation as a secondary objective. There can be no assurance that the Fund will meet its stated objectives.

Allianz Global Investors Fund Management LLC (“AGIFM”), an indirect, wholly-owned subsidiary of Allianz Asset Management of America L.P., serves as the Fund’s investment manager and is a member of Munich-based Allianz Group. Pacific Investment Management Company LLC (“PIMCO”), an AGIFM affiliate, serves as the Fund’s sub-adviser.

The Fund’s daily New York Stock Exchange closing prices, net asset values per share, as well as other information, are available at www.allianzinvestors.com or by calling the Fund’s shareholder servicing agent at (800) 254-5197.

This material may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates and information about possible or future results related to the Fund, market or regulatory developments. The views expressed herein are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed herein are subject to change at any time based upon economic, market, or other conditions and the Fund undertakes no obligation to update the views expressed herein. While we have gathered this information from sources believed to be reliable, the Fund cannot guarantee the accuracy of the information provided. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed herein (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Fund’s trading intent. Information included herein is not an indication of the Fund’s future portfolio composition. The Fund’s ability to pay dividends to common shareholders is subject to restrictions in its registration statement, by-laws and other governing documents, as well as the Investment Company Act of 1940.

The actual composition and character of the distribution described above and future distributions of the Fund may be materially different from the composition or character of such distributions that existed at the time of this press release. Such factors include the varied nature of the Fund's investments and the performance of those investments, and that the ultimate characterization of the Fund's distributions cannot finally be determined until the end of the Fund's fiscal year, resulting in the possibility of a return of capital if the Fund makes total distributions during a fiscal year in an amount that exceeds the Fund's net investment income and net realized capital gains for the fiscal year. As a result of the foregoing and other factors, no assurance can be given as to the actual composition or character of Fund distributions at the time of this press release by the Fund, AGIFM, PIMCO, nor any of their trustees, members, officers or employees.

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