Nuveen Preferred and Convertible Income Funds Raise Monthly Distribution, Adopt New Investment Policy and Managed Distribution Policy

Business Wire, May 1, 2006

CHICAGO -- Nuveen Investments, a leading provider of diversified investment services, today announced an increase of $0.01 and $0.011 per common share, respectively, in the regular monthly distribution for Nuveen Preferred and Convertible Income Fund (NYSE:JPC) and Nuveen Preferred and Convertible Income Fund 2 (NYSE:JQC), to $0.095 per common share for each Fund, for the distribution payable June 1, 2006. These distribution increases reflect each Fund's adoption of a new investment policy and a managed distribution policy, each as described below. These new distribution levels represent annualized rates of 9.41% and 9.42% for JPC and JQC, respectively, based on the closing market price of each Fund's common shares as of April 28, 2006.

Each of the Funds adopted an expanded investment policy for the portion (up to 20%) of each Fund's managed assets currently managed by Symphony Asset Management. Under this new policy, Symphony may diversify its debt investments to include high yield bonds, senior loans, and convertible securities, and may also invest up to 10% of each Fund's managed assets directly in equity securities. The equity securities will be managed by Symphony's equity investment team, with Igor Lotsvin serving as lead portfolio manager This new policy is intended to enhance each Fund's ability to meet its existing investment objective of high current income and total return.

Effective with the distribution payable June 1, 2006, the Funds are also implementing a Managed Distribution Policy, as described in the prospectuses for their respective common share initial public offerings in 2003. Under this policy, the Funds will make monthly distributions of a stated dollar amount per common share, comprised of net investment income, realized capital gains and/or, if necessary, non-taxable distributions (which generally are expected to represent unrealized capital appreciation).

The Funds presently estimate that, at the increased level, the Funds' distribution will be comprised of approximately 80% ordinary income and approximately 20% net realized capital gains and/or, if necessary, a non-taxable distribution. The final determination of the source and tax characteristics of all distributions will be made after December 31, 2006 and reported to shareholders early in 2007. There is no guarantee that the Funds will generate net realized capital gains or net unrealized capital appreciation in the future. As of March 31st, 2006, the Funds had net realized capital gains per common share of $.0547 and $.1086 for JPC and JQC, respectively.

For more information regarding JPC, see http://www.nuveen.com/ETF/products/fqf.aspx?fundid=JPC

For more information regarding JQC, see http://www.nuveen.com/ETF/products/fqf.aspx?fundid=JQC

For more information about Nuveen's family of income-oriented closed-end funds, see http://www.nuveen.com/cef

About Nuveen Investments, Inc.

Nuveen Investments provides high-quality investment services designed to help secure the long-term goals of institutions and high-net-worth investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets its highly specialized investment teams, each with its own brand name and area of expertise: NWQ, specializing in value-style equities; Nuveen, managing fixed-income investments; Santa Barbara, committed to growth equities; Tradewinds NWQ, specializing in global value equities; Rittenhouse, focused on "blue-chip" growth equities; and Symphony, with expertise in alternative investments as well as equity and income portfolios. In total, the Company manages approximately $145 billion in assets. Nuveen Investments is listed on The New York Stock Exchange and trades under the symbol "JNC."