2008-10-14 00:31:09 -

- Western Asset Income Fund (the "Fund") (NYSE: PAI) today announced non-fundamental investment policy changes, to be effective as of October 24, 2008 relating to the Fund's ability to invest in interest rate futures contracts and options on debt securities.

Under the Fund's amended policies, which were recommended by Fund management and approved on September 9, 2008 by the

Fund's Board of Directors (the "Board"), the Fund will now be able to enter into and hold interest rate futures contracts, and the Fund will also be able to write listed covered call options and buy and sell put and call options on debt securities.

These new policies are intended to broaden the Fund's investment opportunities and to provide the Fund's investment adviser, Western Asset Management Company, with additional flexibility to address market developments. Western does not expect that dramatic changes in the Fund's portfolio composition or investment approach will result.

Additional Information about interest rate futures contracts, options on debt securities, and related risks

The Fund may engage in a variety of transactions using "derivatives", such as futures and options. Derivatives are financial instruments whose value depends upon, or is derived from, the value of something else, such as one or more underlying investments, indexes or currencies. Derivatives may be traded on organized exchanges, or in individually negotiated transactions with other parties (these are known as "over-the-counter" derivatives). The Fund may use derivatives both for hedging and non-hedging purposes, including for purposes of enhancing returns. Although the Fund's investment adviser has the flexibility to make use of certain derivatives, it may choose not to for a variety of reasons, even under very volatile market conditions. Derivatives involve special risks and costs and may result in losses to the Fund. The successful use of derivatives requires sophisticated management, and, to the extent that derivatives are used, the Fund will depend on the Adviser's ability to analyze and manage derivatives transactions. The prices of derivatives may move in unexpected ways, especially in abnormal market conditions. Some derivatives are "leveraged" and therefore may magnify or otherwise increase investment losses to the Fund. The Fund's use of derivatives may also increase the amount of taxes payable by shareholders. Other risks arise from the potential inability to terminate or sell derivatives positions. A liquid secondary market may not always exist for the Fund's derivatives positions at any time. In fact, many over-the-counter derivative instruments will not have liquidity beyond the counterparty to the instrument. Over-the-counter derivative instruments also involve the risk that the other party will not meet its obligations to the Fund.

The existing policies of the Fund put certain restrictions on the Fund's ability to engage in these transactions. For example, the Fund may write listed covered call options and buy and sell put and call options on debt securities in an amount not to exceed 15% of the value of its total assets. Additionally, the Fund only enter into and hold interest rate futures contracts, if, immediately thereafter, the sum of (a) the then aggregate futures market prices of financial instruments required to be delivered under open futures contracts sales of the Fund and (b) the aggregate purchase prices under open futures contract purchases of the Fund, would not exceed 30% of the total assets of the Fund, at market value.

The Western Asset Income Fund is a closed-end investment company that invests predominantly in a diversified portfolio of debt securities. Its investment adviser is Western Asset Management Company; a subsidiary of Legg Mason, Inc. Western Asset Management Company has managed the Fund since its inception in March 1973.

For Fund related questions, please contact Western Asset Management Company at (877) 844-8800.

For shareholder related questions please contact Computershare Investor Services, at (866) 290-4386.

Legg Mason & Co. LLC
Brenda Grandell, 212-857-8087
Director, Closed-End Funds