Western Asset Income Fund (“PAI”) Sets New Rate and Announces Distributions for the Months of December 2012, January & February 2013

Western Asset Income Fund, which is listed on the New York Stock Exchange under the symbol “PAI”, announced today a monthly distribution rate of $0.0575 per common share for the months of December 2012, January and February 2013. The Fund has decreased its distributions to a level that better approximates the current level of net investment income generated by its investment portfolio. As the Fund reinvests principal and income, it reinvests at lower levels relative to current distribution rates as interest rates remain low. The Fund had previously paid a monthly distribution rate of $0.0600 per common share.

The distribution schedule appears below:

This press release is not for tax reporting purposes but is being provided to announce the amount of the Fund's distributions that have been declared by the Board of Trustees. In early 2013 and early 2014, after definitive information is available, the Fund will send shareholders a Form 1099-DIV, if applicable, specifying how the distributions paid by the Fund during the prior calendar year should be characterized for purposes of reporting the distributions on your tax return (e.g., ordinary income, long-term capital gain or return of capital).

The 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 Fund Investor Services at (888) 777-0102.

For shareholder-related questions please contact American Stock Transfer and Trust Company at (888) 888-0151.

All data and commentary provided within this press release is for informational purposes only. Legg Mason, Inc. and its affiliates do not engage in selling any of the shares of the Fund.