WEA Western Asset Premier Bond Fund

Western Asset Premier Bond Fund (NYSE:WEA) today announced actions that would restructure the Fund�s leverage and provide liquidity to holders of its auction rate preferred shares (�ARPS�) on terms and conditions management and the Board of the Fund believe are in the best interests of both the common and preferred shareholders of the Fund. This transaction, if consummated, would provide liquidity for the $72 million of ARPS issued by the Fund. Western Asset Premier Bond Fund intends to redeem all of its currently outstanding $72 million in ARPS using a combination of borrowings under a new $68 million, 364-day credit facility to be entered into with a major domestic bank, reverse repurchase agreements, cash currently in the Fund�s portfolio, and/or the proceeds of sales of portfolio securities. Any use of cash currently in the Fund�s portfolio or use of proceeds from the sale of portfolio securities could result in a moderate decrease in the Fund�s leverage. The ARPS would be redeemed at the required liquidation preference of $25,000 per share plus accrued and unpaid dividends thereon. The new credit facility, which was recommended by Fund management and approved by the Fund�s Board of Trustees, is expected to lower the current cost of leverage for the Fund. The new financings also allow Western Asset Premier Bond Fund to change its primary method of leverage from ARPS to bank borrowings through the credit facility. Bank borrowings provide the Fund greater flexibility than ARPS to increase or decrease leverage in response to market conditions although regulatory requirements and requirements under the credit facility reduce the overall amount of leverage that can be employed using borrowings; however, the Fund may also use other investment techniques, such as reverse repurchase agreements, to increase or decrease leverage, as permitted by applicable law and the terms of the credit facility. It is also possible that the credit facility may become more expensive or unavailable in the future. On balance, however, management and the Board of the Fund believe that the potential benefits of the restructured financing will outweigh these risks. Western Asset Premier Bond Fund is in negotiations to obtain the credit facility. While management of the Fund expects to reach definitive agreement with the bank to secure this loan shortly, there can be no assurance that the Fund will enter into a definitive credit facility or that the ARPS will be redeemed. It is anticipated that Western Asset Premier Bond Fund will begin redeeming its ARPS in full beginning in the third quarter of this year. Additional information on the redemption will be issued subsequently via press release under the Fund�s ticker, which can be accessed at www.westernasset.com. Contact Western Asset Premier Bond Fund at 1-877-844-8800 or consult the Fund�s web site at www.westernasset.com. Western Asset Premier Bond Fund is a closed-end management investment company that invests primarily in a diversified portfolio of debt securities. It has been advised by Western Asset Management Company and sub-advised by Western Asset Management Company Limited, both subsidiaries of Legg Mason, Inc., since the Fund�s inception in 2002. THIS PRESS RELEASE IS NOT AN OFFER TO PURCHASE NOR A SOLICITATION OF AN OFFER TO SELL SHARES OF THE FUNDS. THIS PRESS RELEASE MAY CONTAIN STATEMENTS REGARDING PLANS AND EXPECTATIONS FOR THE FUTURE THAT CONSTITUTE FORWARD-LOOKING STATEMENTS WITHIN THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. ALL STATEMENTS OTHER THAN STATEMENTS OF HISTORICAL FACT ARE FORWARD-LOOKING AND CAN BE IDENTIFIED BY THE USE OF WORDS SUCH AS �MAY,� �WILL,� �EXPECT,� �ANTICIPATE,� �ESTIMATE,� �BELIEVE,� �CONTINUE� OR OTHER SIMILAR WORDS. SUCH FORWARD-LOOKING STATEMENTS ARE BASED ON EACH FUND�S CURRENT PLANS AND EXPECTATIONS, AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD-LOOKING STATEMENTS. ADDITIONAL INFORMATION CONCERNING SUCH RISKS AND UNCERTAINTIES ARE CONTAINED IN EACH FUND�S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.