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Franklin Resources, Inc. Announces First Quarter Results

January 24, 2008

SAN MATEO, Calif.--(BUSINESS WIRE)--Jan. 24, 2008--Franklin Resources, Inc. (Franklin Templeton Investments) (NYSE:BEN) today announced net income of $518.3 million, or $2.12 per share diluted, on revenues of $1,685.6 million for the quarter ended December 31, 2007. In the quarter ended September 30, 2007, net income was $436.9 million, or $1.76 per share diluted, on revenues of $1,629.1 million. For the quarter ended December 31, 2006, net income was $426.8 million, or $1.67 per share diluted, on revenues of $1,427.8 million.

Operating income for the quarter ended December 31, 2007 was $635.7 million, as compared to $541.4 million for the prior quarter and $508.1 million for the quarter ended December 31, 2006. The company's non-operating income for the quarter ended December 31, 2007 included $80.8 million of investment and other income, net, as compared to $86.0 million in the prior quarter and $71.1 million for the quarter ended December 31, 2006.

Total assets under management by the company's subsidiaries were $643.7 billion at December 31, 2007, as compared to $645.9 billion at September 30, 2007 and $552.9 billion at December 31, 2006. Simple monthly average assets under management during the quarter ended December 31, 2007 were $651.5 billion, as compared to $627.3 billion in the preceding quarter and $533.1 billion in the same quarter a year ago. Equity assets comprised 59% of total assets under management at December 31, 2007, as compared to 60% of total assets under management at September 30, 2007 and December 31, 2006. Fixed-income assets comprised 22% of total assets under management at December 31, 2007, as compared to 21% of total assets under management at September 30, 2007 and December 31, 2006. Hybrid assets accounted for 18% of total assets under management at December 31, 2007, September 30, 2007 and December 31, 2006. Sales exceeded redemptions by $4.9 billion for the quarter ended December 31, 2007, as compared to $9.8 billion for the prior quarter and $10.0 billion for the comparable quarter a year ago.

Cash and cash equivalents were $2.9 billion at December 31, 2007, as compared to $3.6 billion at September 30, 2007. Stockholders' equity was $7.0 billion at December 31, 2007, as compared to $7.3 billion at September 30, 2007. The company had 239.7 million shares of common stock outstanding at December 31, 2007, as compared to 245.5 million shares outstanding at September 30, 2007. During the quarter ended December 31, 2007, the company repurchased 6.5 million shares of its common stock for a total cost of $780.5 million.

On January 24, 2008, the company's Board of Directors authorized the company to purchase, from time to time, up to an aggregate of 10.0 million shares of its common stock in either open market or off-market transactions. The size and timing of these purchases will depend on price, market and business conditions and other factors. The stock repurchase program is not subject to an expiration date. The new board authorization is in addition to the existing authorization, of which 1,371,118 shares remained available for repurchase at January 15, 2008. The company repurchased an aggregate of 7.9 million shares during the period October 1, 2007 to January 15, 2008. Shares repurchased under the program are retired.

    Fiscal First Quarter 2008 Highlights

    Global Business Developments(1)

(See important footnotes in "Supplemental Information" section at the end of this release.)

    --  Franklin Resources, Inc. announced a 33.3% increase in its
        quarterly dividend over the dividend paid the prior quarter
        and the same quarter last year. The company has increased its
        annual dividend rate every year since 1981.

    --  The Industrial and Commercial Bank of China, China's largest
        commercial bank, selected Franklin Templeton Investments to
        manage its newest Qualified Domestic Institutional Investor
        fund for domestic Chinese retail and institutional investors.

    --  The NJBEST college savings program, comprised of NJBEST 529
        College Savings Plan - New Jersey and Franklin Templeton 529
        College Savings Plan, offered by the State of New Jersey
        Higher Education Student Assistance Authority and managed and
        distributed by Franklin/Templeton Distributors, Inc., reported
        that collective assets in the plans surpassed $2 billion.

    --  Franklin Templeton Investments introduced U.S.-registered
        Franklin Focused Core Equity Fund and Templeton International
        Bond Fund.

    --  Franklin Templeton Investments launched Templeton Emerging
        Markets Smaller Companies Fund, a new SICAV (Societes
        d'Investissement a Capital Variable) fund.

    --  Franklin Templeton Investments (India) launched Franklin Asian
        Equity Fund, a new open-end equity fund that leverages the
        expertise of local asset management teams in India, Korea and
        China.

    --  In Germany, Templeton Asian Growth Fund and Templeton Global
        Bond Fund received the Feri Fund Award 2008 in their
        respective categories of Equities Asia ex Japan and Bonds
        Global Currencies.

    --  In Austria, Geld magazine awarded the Austrian Fund of Funds
        Award to Franklin Templeton Strategic Income Fund for the Best
        Balanced Fund of Funds/Bonds-Oriented 2007 for the one-year
        period.

    --  In Canada, DALBAR ranked Franklin Templeton Investments #1
        among broker-distributed firms for English and French call
        center services.

    --  Franklin Templeton Institutional expanded its U.S. Consultant
        Relations Team to provide enhanced regional coverage and
        capitalize on the increased recognition of FT Institutional's
        capabilities among investment consultants.

    --  Mutual Fund Education Alliance awarded Franklin Templeton
        Investments its STAR Award for Educational Brochure in the
        Large Company category.

Lipper Performance Rankings of Franklin Templeton's U.S.-Registered Long-Term Mutual Funds(1,2)

FRANKLIN TEMPLETON(3,4)

 Lipper Quartile             Period Ended December 31, 2007
                  ----------------------------------------------------
                     1-Year       3-Year       5-Year       10-Year
                   Assets (%)   Assets (%)   Assets (%)   Assets (%)
                  ------------ ------------ ------------ -------------
    1st & 2nd         49%          66%          79%           92%
----------------------------------------------------------------------
    3rd & 4th         51%          34%          21%           8%
----------------------------------------------------------------------

FRANKLIN TEMPLETON EQUITY(3,5)

 Lipper Quartile             Period Ended December 31, 2007
                  ----------------------------------------------------
                     1-Year       3-Year       5-Year       10-Year
                   Assets (%)   Assets (%)   Assets (%)   Assets (%)
                  ------------ ------------ ------------ -------------
    1st & 2nd         29%          51%          70%           88%
----------------------------------------------------------------------
    3rd & 4th         71%          49%          30%           12%
----------------------------------------------------------------------

FRANKLIN TEMPLETON FIXED INCOME(3,6)

 Lipper Quartile             Period Ended December 31, 2007
                  ----------------------------------------------------
                     1-Year       3-Year       5-Year       10-Year
                   Assets (%)   Assets (%)   Assets (%)   Assets (%)
                  ------------ ------------ ------------ -------------
    1st & 2nd         95%          99%          98%           99%
----------------------------------------------------------------------
    3rd & 4th          5%           1%           2%           1%
----------------------------------------------------------------------

FRANKLIN EQUITY(3,7)

 Lipper Quartile             Period Ended December 31, 2007
                  ----------------------------------------------------
                     1-Year       3-Year       5-Year       10-Year
                   Assets (%)   Assets (%)   Assets (%)   Assets (%)
                  ------------ ------------ ------------ -------------
    1st & 2nd         12%          73%          73%           84%
----------------------------------------------------------------------
    3rd & 4th         88%          27%          27%           16%
----------------------------------------------------------------------

TEMPLETON EQUITY(3,8)

 Lipper Quartile             Period Ended December 31, 2007
                  ----------------------------------------------------
                     1-Year       3-Year       5-Year       10-Year
                   Assets (%)   Assets (%)   Assets (%)   Assets (%)
                  ------------ ------------ ------------ -------------
    1st & 2nd         40%          19%          71%           89%
----------------------------------------------------------------------
    3rd & 4th         60%          81%          29%           11%
----------------------------------------------------------------------

MUTUAL SERIES EQUITY(3,9)

 Lipper Quartile             Period Ended December 31, 2007
                  ----------------------------------------------------
                     1-Year       3-Year       5-Year       10-Year
                   Assets (%)   Assets (%)   Assets (%)   Assets (%)
                  ------------ ------------ ------------ -------------
    1st & 2nd         50%          62%          62%          100%
----------------------------------------------------------------------
    3rd & 4th         50%          38%          38%           0%
----------------------------------------------------------------------

FRANKLIN TEMPLETON TAXABLE FIXED INCOME(3,10)

 Lipper Quartile             Period Ended December 31, 2007
                  ----------------------------------------------------
                     1-Year       3-Year       5-Year       10-Year
                   Assets (%)   Assets (%)   Assets (%)   Assets (%)
                  ------------ ------------ ------------ -------------
    1st & 2nd         94%          98%          92%           98%
----------------------------------------------------------------------
    3rd & 4th          6%           2%           8%           2%
----------------------------------------------------------------------

FRANKLIN TEMPLETON TAX-FREE FIXED INCOME(3,11)

 Lipper Quartile             Period Ended December 31, 2007
                  ----------------------------------------------------
                     1-Year       3-Year       5-Year       10-Year
                   Assets (%)   Assets (%)   Assets (%)   Assets (%)
                  ------------ ------------ ------------ -------------
    1st & 2nd         95%          100%         100%         100%
----------------------------------------------------------------------
    3rd & 4th          5%           0%           0%           0%
----------------------------------------------------------------------

Performance quoted above represents past performance, which cannot predict or guarantee future results.

Franklin Resources, Inc.
Preliminary Condensed Consolidated Income Statements
Unaudited

(in thousands, except per share data        Three months ended
 and assets under management)                   December 31
                                      --------------------------------
                                         2007        2006     % Change
                                      ----------- ----------- --------
Operating Revenues
Investment management fees            $1,020,315  $  831,890      23%
Underwriting and distribution fees       573,796     509,773      13%
Shareholder servicing fees                73,175      67,565       8%
Consolidated sponsored investment
 products income, net                      2,904         837     247%
Other, net                                15,401      17,750     (13%)
                                      --------------------------------
 Total operating revenues              1,685,591   1,427,815      18%
                                      --------------------------------
Operating Expenses
Underwriting and distribution            552,590     478,051      16%
Compensation and benefits                280,290     251,016      12%
Information systems, technology and
 occupancy                                79,617      75,063       6%
Advertising and promotion                 46,644      34,861      34%
Amortization of deferred sales
 commissions                              44,551      33,747      32%
Other                                     46,170      47,007      (2%)
                                      --------------------------------
 Total operating expenses              1,049,862     919,745      14%
                                      --------------------------------
 Operating income                        635,729     508,070      25%
                                      --------------------------------
Other Income (Expenses)
Consolidated sponsored investment
 products (losses) gains, net               (977)     30,286     N/A
Investment and other income, net          80,773      71,109      14%
Interest expense                          (6,045)     (6,122)     (1%)
                                      --------------------------------
 Other income, net                        73,751      95,273     (23%)
                                      --------------------------------
Income before taxes on income            709,480     603,343      18%
Taxes on income                          191,164     176,543       8%
                                      --------------------------------
 Net income                           $  518,316  $  426,800      21%
                                      ================================

Earnings per Share
   Basic                              $     2.15  $     1.69      27%
   Diluted                                  2.12        1.67      27%

Dividends per share                   $     0.20  $     0.15      33%

Average Shares Outstanding (in
 thousands)
   Basic                                 241,585     252,400      (4%)
   Diluted                               244,147     255,547      (4%)

Operating Margin(1)                           38%         36%

Assets Under Management (in millions)
Beginning of period                   $  645,889  $  511,330      26%
   Sales                                  50,615      37,611      35%
   Reinvested distributions               19,476      12,864      51%
   Redemptions                           (45,661)    (27,661)     65%
   Distributions                         (23,074)    (15,554)     48%
   Dispositions(2)                            --      (1,968)   (100%)
   (Depreciation) appreciation            (3,500)     36,283     N/A
                                      --------------------------------
End of period                         $  643,745  $  552,905      16%
                                      ================================
Simple Monthly Average for Period     $  651,478  $  533,138      22%

(1) Operating margin: Operating income divided by total operating revenues.

(2) The quarter ended December 31, 2006 includes the divestiture of assets under management of a former subsidiary at October 1, 2006.

Franklin Resources, Inc.
Preliminary Condensed Consolidated Income Statements
Unaudited


(in thousands, except per share
 data, employees and billable
 shareholder accounts)                     Three months ended
                                   -----------------------------------
                                    31-Dec-07   30-Sep-07   % Change
                                   ----------- ------------ --------
Operating Revenues
Investment management fees         $1,020,315  $   963,316       6%
Underwriting and distribution fees    573,796      577,762      (1%)
Shareholder servicing fees             73,175       71,035       3%
Consolidated sponsored investment
 products income, net                   2,904        2,506      16%
Other, net                             15,401       14,518       6%
                                   -----------------------------------
 Total operating revenues           1,685,591    1,629,137       3%
                                   -----------------------------------
Operating Expenses
Underwriting and distribution         552,590      552,729      --%
Compensation and benefits             280,290      285,631      (2%)
Information systems, technology
 and occupancy                         79,617       89,187     (11%)
Advertising and promotion              46,644       56,128     (17%)
Amortization of deferred sales
 commissions                           44,551       45,935      (3%)
Other                                  46,170       58,139     (21%)
                                   -----------------------------------
 Total operating expenses           1,049,862    1,087,749      (3%)
                                   -----------------------------------
 Operating income                     635,729      541,388      17%
                                   -----------------------------------
Other Income (Expenses)
Consolidated sponsored investment
 products (losses) gains, net            (977)      (2,719)    (64%)
Investment and other income, net       80,773       86,034      (6%)
Interest expense                       (6,045)      (4,971)     22%
                                   -----------------------------------
 Other income, net                     73,751       78,344      (6%)
                                   -----------------------------------
Income before taxes on income         709,480      619,732      14%
Taxes on income                       191,164      182,824       5%
                                   -----------------------------------
 Net income                        $  518,316  $   436,908      19%
                                   ===================================

Earnings per Share
   Basic                           $     2.15  $      1.78      21%
   Diluted                               2.12         1.76      20%

Dividends per share                $     0.20  $      0.15      33%

Average Shares Outstanding (in
 thousands)
   Basic                              241,585      244,807      (1%)
   Diluted                            244,147      247,869      (2%)

Operating Margin(1)                        38%          33%

Employees                               8,875        8,699       2%
Billable Shareholder Accounts (in
 millions)                               21.2         20.4       4%


(in thousands, except per share
 data, employees and billable
 shareholder accounts)                     Three months ended
                                  ------------------------------------
                                    30-Jun-07   31-Mar-07   31-Dec-06
                                   ----------- ----------- -----------
Operating Revenues
Investment management fees         $  927,843  $  850,796  $  831,890
Underwriting and distribution
 fees                                 619,315     570,848     509,773
Shareholder servicing fees             70,126      68,333      67,565
Consolidated sponsored investment
 products income, net                   3,134       1,327         837
Other, net                             19,393      17,702      17,750
                                  ------------------------------------
 Total operating revenues           1,639,811   1,509,006   1,427,815
                                  ------------------------------------
Operating Expenses
Underwriting and distribution         595,905     533,946     478,051
Compensation and benefits             275,516     268,471     251,016
Information systems, technology
 and occupancy                         79,735      73,953      75,063
Advertising and promotion              52,358      46,035      34,861
Amortization of deferred sales
 commissions                           40,817      37,615      33,747
Other                                  76,474      49,903      47,007
                                  ------------------------------------
 Total operating expenses           1,120,805   1,009,923     919,745
                                  ------------------------------------
 Operating income                     519,006     499,083     508,070
                                  ------------------------------------
Other Income (Expenses)
Consolidated sponsored investment
 products (losses) gains, net          16,348      13,755      30,286
Investment and other income, net      105,304     100,857      71,109
Interest expense                       (6,137)     (5,990)     (6,122)
                                  ------------------------------------
 Other income, net                    115,515     108,622      95,273
                                  ------------------------------------
Income before taxes on income         634,521     607,705     603,343
Taxes on income                       166,157     166,839     176,543
                                  ------------------------------------
 Net income                        $  468,364  $  440,866  $  426,800
                                  ====================================

Earnings per Share
   Basic                           $     1.89  $     1.75  $     1.69
   Diluted                               1.86        1.73        1.67

Dividends per share                $     0.15  $     0.15  $     0.15

Average Shares Outstanding (in
 thousands)
   Basic                              247,858     251,763     252,400
   Diluted                            251,305     255,160     255,547

Operating Margin(1)                        32%         33%         36%

Employees                               8,665       8,337       8,211
Billable Shareholder Accounts (in
 millions)                               21.0        20.5        19.5

(1) Operating margin: Operating income divided by total operating revenues.

ASSETS UNDER MANAGEMENT BY INVESTMENT OBJECTIVE
(in billions)                          Three months ended
                           -------------------------------------------
                            31-    30-             30-    31-    31-
                            Dec-   Sep-            Jun-   Mar-   Dec-
                             07     07   % Change   07     07     06
                           -------------------------------------------
 Equity
     Global/international  $286.1 $286.7     --%  $274.4 $248.7 $240.6
     Domestic (U.S.)         95.8  100.5     (5%)  101.6   95.1   91.0
                           -------------------------------------------
     Total equity           381.9  387.2     (1%)  376.0  343.8  331.6
                           -------------------------------------------

 Hybrid                     116.4  117.2     (1%)  112.7  105.0   98.7

 Fixed-Income
     Tax-free                59.3   59.0      1%    58.2   57.3   56.6
     Taxable:
      Global/international   47.2   43.0     10%    37.8   31.0   27.3
      Domestic (U.S.)        31.5   31.8     (1%)   32.8   33.0   32.4
                           -------------------------------------------
     Total fixed-income     138.0  133.8      3%   128.8  121.3  116.3
                           -------------------------------------------

 Money Market                 7.4    7.7     (4%)    6.5    5.9    6.3
                           -------------------------------------------
Total Ending Assets        $643.7 $645.9     --%  $624.0 $576.0 $552.9
                           ===========================================

Simple Monthly Average
 Assets                    $651.5 $627.3      4%  $605.5 $563.7 $533.1
ASSETS UNDER MANAGEMENT AND FLOWS
(in billions)                        Three months ended
                       -----------------------------------------------
                       31-Dec-07 30-Sep-07 % Change 31-Dec-06 % Change
                       --------- --------- -------- --------- --------
Beginning Assets Under
 Management              $645.9    $624.0       4%    $511.3      26%
 U.S. retail assets(1)
   Beginning assets      $369.7    $366.5       1%    $307.2      20%
   -------------------------------------------------------------------
   Sales                   15.8      17.8     (11%)     17.8     (11%)
   Reinvested
    distributions          16.7       1.2      --       11.5      45%
   Redemptions            (15.6)    (16.0)     (3%)    (11.5)     36%
   Distributions          (21.6)     (1.9)     --      (14.0)     54%
   (Depreciation)
    appreciation           (2.9)      2.1     N/A       19.9     N/A
   -------------------------------------------------------------------
   Ending assets         $362.1    $369.7      (2%)   $330.9       9%
   -------------------------------------------------------------------
Other assets, including international and
 institutional
   Beginning assets      $276.2    $257.5       7%    $204.1      35%
   -------------------------------------------------------------------
   Sales                   34.8      34.8      --%      19.8      76%
   Reinvested
    distributions           2.8       0.4     600%       1.4     100%
   Redemptions            (30.1)    (26.8)     12%     (16.1)     87%
   Distributions           (1.5)     (0.4)    275%      (1.6)     (6%)
   Dispositions(2)           --        --     N/A       (2.0)   (100%)
   (Depreciation)
    appreciation           (0.6)     10.7     N/A       16.4     N/A
   -------------------------------------------------------------------
   Ending assets         $281.6    $276.2       2%    $222.0      27%
   -------------------------------------------------------------------
   Total Ending Assets   $643.7    $645.9      --%    $552.9      16%
   ===================================================================
Total Assets Under Management
   Beginning assets      $645.9    $624.0       4%    $511.3      26%
   -------------------------------------------------------------------
   Sales                   50.6      52.6      (4%)     37.6      35%
   Reinvested
    distributions          19.5       1.6      --       12.9      51%
   Redemptions            (45.7)    (42.8)      7%     (27.6)     66%
   Distributions          (23.1)     (2.3)    904%     (15.6)     48%
   Dispositions(2)           --        --     N/A       (2.0)   (100%)
   (Depreciation)
    appreciation           (3.5)     12.8     N/A       36.3     N/A
   -------------------------------------------------------------------
   Ending assets         $643.7    $645.9      --%    $552.9      16%
   ===================================================================

(1) U.S. retail assets include institutional assets totaling approximately $39.1 billion that are invested in U.S. retail fund and annuity products. Total institutional and high net-worth assets at December 31, 2007 were approximately $202.5 billion, of which high net-worth assets comprised $11.5 billion.

(2) The quarter ended December 31, 2006 includes the divestiture of assets under management of a former subsidiary at October 1, 2006.

ASSETS UNDER MANAGEMENT AND FLOWS BY INVESTMENT OBJECTIVE
(in billions)                                 Three months ended
                                         -----------------------------
                                         31-Dec-07 30-Sep-07 31-Dec-06
                                         --------- --------- ---------
Global/international equity
    Beginning assets                       $286.7    $274.4    $217.6
    ------------------------------------------------------------------
    Sales                                    20.8      21.9      15.2
    Reinvested distributions                 11.3       0.1       7.1
    Redemptions                             (19.4)    (17.8)    (11.9)
    Distributions                           (12.3)     (0.1)     (8.1)
    Dispositions(1)                            --        --      (2.0)
    (Depreciation) appreciation              (1.0)      8.2      22.7
    ------------------------------------------------------------------
    Ending assets                           286.1     286.7     240.6
    ------------------------------------------------------------------
Domestic (U.S.) equity
    Beginning assets                        100.5     101.6      84.4
    ------------------------------------------------------------------
    Sales                                     4.0       4.7       4.4
    Reinvested distributions                  5.0        --       3.9
    Redemptions                              (4.8)     (4.4)     (3.6)
    Distributions                            (5.6)     (0.1)     (4.3)
    (Depreciation) appreciation              (3.3)     (1.3)      6.2
    ------------------------------------------------------------------
    Ending assets                            95.8     100.5      91.0
    ------------------------------------------------------------------
Hybrid
    Beginning assets                        117.2     112.7      90.6
    ------------------------------------------------------------------
    Sales                                     3.9       4.7       5.7
    Reinvested distributions                  2.0       0.6       1.1
    Redemptions                              (2.9)     (2.9)     (2.2)
    Distributions                            (2.9)     (0.9)     (1.5)
    (Depreciation) appreciation              (0.9)      3.0       5.0
    ------------------------------------------------------------------
    Ending assets                           116.4     117.2      98.7
    ------------------------------------------------------------------
Tax-free income
    Beginning assets                         59.0      58.2      55.6
    ------------------------------------------------------------------
    Sales                                     2.2       2.2       1.9
    Reinvested distributions                  0.4       0.4       0.4
    Redemptions                              (1.8)     (1.8)     (1.4)
    Distributions                            (0.7)     (0.6)     (0.6)
    Appreciation                              0.2       0.6       0.7
    ------------------------------------------------------------------
    Ending assets                            59.3      59.0      56.6
    ------------------------------------------------------------------
Taxable fixed-income
    Beginning assets                         74.8      70.6      56.8
    ------------------------------------------------------------------
    Sales                                    10.5      10.3       6.8
    Reinvested distributions                  0.7       0.4       0.3
    Redemptions                              (7.9)     (8.5)     (4.9)
    Distributions                            (1.5)     (0.5)     (1.0)
    Appreciation                              2.1       2.5       1.7
    ------------------------------------------------------------------
    Ending assets                            78.7      74.8      59.7
    ------------------------------------------------------------------
Money market
    Beginning assets                          7.7       6.5       6.3
    ------------------------------------------------------------------
    Sales                                     9.2       8.8       3.6
    Reinvested distributions                  0.1       0.1       0.1
    Redemptions                              (8.9)     (7.4)     (3.6)
    Distributions                            (0.1)     (0.1)     (0.1)
    Depreciation                             (0.6)     (0.2)       --
    ------------------------------------------------------------------
    Ending assets                             7.4       7.7       6.3
    ------------------------------------------------------------------
Ending Assets Under Management             $643.7    $645.9    $552.9
======================================================================

(1) The quarter ended December 31, 2006 includes the divestiture of assets under management of a former subsidiary at October 1, 2006.

Conference Call Information

President and Chief Executive Officer of Franklin Resources, Inc., Greg Johnson, and Executive Vice President and Chief Financial Officer, Ken Lewis, will lead a live conference call on Thursday, January 24, 2008 at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss Franklin Resources' fiscal first quarter 2008 financial results and answer analysts' questions.

Access to the teleconference will be available via franklintempleton.com 10 minutes before the start of the call or by dialing (877) 480-6346 in the U.S. or (706) 902-1906 internationally.

A replay of the call will be archived on the "Our Company" page of franklintempleton.com through February 8, 2008. The replay can also be accessed by calling (800) 642-1687 in the U.S. or (706) 645-9291 internationally using access code 30100275, after 5:30 p.m. Eastern Time on January 24, 2008, through 11:59 p.m. Eastern Time on February 8, 2008.

Questions regarding the teleconference call should be directed to Franklin Resources, Inc., Investor Relations at (650) 312-4091 or Corporate Communications at (650) 312-2245.

Franklin Resources, Inc. (NYSE:BEN) is a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management solutions managed by its Franklin, Templeton, Mutual Series and Fiduciary Trust investment teams. The San Mateo, CA-based company has 60 years of investment experience and over $643 billion in assets under management as of December 31, 2007. For more information, please call 1-800/DIAL BEN(R) or visit franklintempleton.com.

Supplemental Information

Investors should carefully consider a fund's investment goals, risks, charges and expenses before investing. To obtain a prospectus, which contains this and other information, for any U.S.-registered Franklin Templeton fund, investors should talk to their financial advisors or call Franklin/Templeton Distributors, Inc. at 1-800/DIAL BEN(R) (1-800/342-5236). Please read the prospectus carefully before investing.

1. Nothing in this press release shall be considered a solicitation to buy or an offer to sell a security to any person in any jurisdiction where such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. Franklin/Templeton Distributors, Inc., One Franklin Parkway, San Mateo, CA, is the U.S.-registered funds' principal distributor and a wholly owned subsidiary of Franklin Resources, Inc. The information on Global Business Developments is being provided for information purposes only.

2. Lipper rankings for Franklin Templeton U.S.-registered mutual funds are based on Class A shares. Performance returns, ratings and rankings for other classes may vary. Franklin Templeton mutual funds are compared against a universe of all share classes.

3. Lipper calculates averages by taking all of the funds and share classes in a peer group and averaging their total returns for the periods indicated. Lipper tracks 146 peer groups of U.S. retail mutual funds, and the groups vary in size from 2 to 943 funds. Lipper total return calculations include reinvested dividends and capital gains, but do not include sales charges or expense subsidization by the manager. Results may have been different if these or other factors had been considered.

4. Source: Lipper(R) Inc., 12/31/07. Of the eligible Franklin Templeton long-term mutual funds tracked by Lipper, 42, 47, 48 and 49 funds ranked in the top quartile and 29, 20, 18 and 15 funds ranked in the second quartile, for the one-, three-, five- and 10-year periods, respectively, for their respective Lipper peer groups.

5. Source: Lipper(R) Inc., 12/31/07. Of the eligible Franklin Templeton equity mutual funds tracked by Lipper, 18, 14, 11 and 15 funds ranked in the top quartile and 12, 10, 13 and 9 funds ranked in the second quartile, for the one-, three-, five- and 10-year periods, respectively, for their respective Lipper peer groups.

6. Source: Lipper(R) Inc., 12/31/07. Of the eligible Franklin Templeton non-money market fixed income mutual funds tracked by Lipper, 24, 33, 37 and 34 funds ranked in the top quartile and 17, 10, 5 and 6 funds ranked in the second quartile, for the one-, three-, five- and 10-year periods, respectively, for their respective Lipper peer groups.

7. Source: Lipper(R) Inc., 12/31/07. Of the eligible Franklin equity mutual funds tracked by Lipper, 12, 9, 6 and 7 funds ranked in the top quartile and 7, 6, 9 and 7 funds ranked in the second quartile, for the one-, three-, five- and 10-year periods, respectively, for their respective Lipper peer groups.

8. Source: Lipper(R) Inc., 12/31/07. Of the eligible Templeton equity mutual funds tracked by Lipper, 5, 2, 3 and 3 funds ranked in the top quartile and 2, 1, 1 and 1 funds ranked in the second quartile, for the one-, three-, five- and 10-year periods, respectively, for their respective Lipper peer groups.

9. Source: Lipper(R) Inc., 12/31/07. Of the eligible Mutual Series equity mutual funds tracked by Lipper, 1, 3, 2 and 5 funds ranked in the top quartile and 3, 3, 3 and 1 funds ranked in the second quartile, for the one-, three-, five- and 10-year periods, respectively, for their respective Lipper peer groups.

10. Source: Lipper(R) Inc., 12/31/07. Of the eligible Franklin Templeton non-money market taxable fixed income mutual funds tracked by Lipper, 7, 4, 5 and 3 funds ranked in the top quartile and 2, 6, 4 and 4 funds ranked in the second quartile, for the one-, three-, five- and 10-year periods, respectively, for their respective Lipper peer groups.

11. Source: Lipper(R) Inc., 12/31/07. Of the eligible Franklin Templeton non-money market tax-free fixed income mutual funds tracked by Lipper, 17, 29, 32 and 31 funds ranked in the top quartile and 15, 4, 1 and 2 funds ranked in the second quartile, for the one-, three-, five- and 10-year periods, respectively, for their respective Lipper peer groups.

Forward-Looking Statements:

The financial results in this press release are preliminary. Statements in this press release regarding Franklin Resources, Inc., which are not historical facts, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors, some of which are listed below, that could cause the actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements. These and other risks, uncertainties and other important factors are described in more detail in Franklin's recent filings with the U.S. Securities and Exchange Commission, including, without limitation, in Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operations in Franklin's Annual Report on Form 10-K for the fiscal year ended September 30, 2007.

    --  We are subject to extensive and often complex, overlapping and
        frequently changing rules, regulations and legal
        interpretations in the United States and abroad.

    --  Regulatory and legislative actions and reforms have made the
        regulatory environment in which we operate more costly and
        future actions and reforms could adversely impact our assets
        under management, increase costs and negatively impact our
        profitability and future financial results.

    --  Our ability to maintain the beneficial tax treatment we
        anticipate with respect to non-U.S. earnings we have
        repatriated is based on current interpretations of the
        American Jobs Creation Act of 2004 (the "Jobs Act") and timely
        and permitted use of such amounts in accordance with our
        domestic reinvestment plan and the Jobs Act.

    --  Any significant limitation or failure of our software
        applications and other technology systems that are critical to
        our operations could constrain our operations.

    --  We face risks, and corresponding potential costs and expenses,
        associated with conducting operations and growing our business
        in numerous countries.

    --  We depend on key personnel and our financial performance could
        be negatively affected by the loss of their services.

    --  Strong competition from numerous and sometimes larger
        companies with competing offerings and products could limit or
        reduce sales of our products, potentially resulting in a
        decline in our market share, revenues and net income.

    --  Changes in the distribution channels on which we depend could
        reduce our revenues and hinder our growth.

    --  The amount or mix of our assets under management are subject
        to significant fluctuations and could negatively impact our
        revenues and income.

    --  Our increasing focus on international markets as a source of
        investments and sales of investment products subjects us to
        increased exchange rate and other risks in connection with
        earnings and income generated overseas.

    --  Poor investment performance of our products could affect our
        sales or reduce the level of assets under management,
        potentially negatively impacting our revenues and income.

    --  We could suffer losses in earnings or revenue if our
        reputation is harmed.

    --  Our future results are dependent upon maintaining an
        appropriate level of expenses, which is subject to
        fluctuation.

    --  Our ability to successfully integrate widely varied business
        lines can be impeded by systems and other technological
        limitations.

    --  Our inability to successfully recover should we experience a
        disaster or other business continuity problem could cause
        material financial loss, loss of human capital, regulatory
        actions, reputational harm or legal liability.

    --  Certain of the portfolios we manage, including our emerging
        market portfolios, are vulnerable to market-specific
        political, economic or other risks, any of which may
        negatively impact our revenues and income.

    --  Our revenues, earnings and income could be adversely affected
        if the terms of our management agreements are significantly
        altered or these agreements are terminated by the funds we
        advise.

    --  Diverse and strong competition limits the interest rates that
        we can charge on consumer loans.

    --  Civil litigation arising out of or relating to previously
        settled governmental investigations or other matters,
        governmental or regulatory investigations and/or examinations
        and the legal risks associated with our business could
        adversely impact our assets under management, increase costs
        and negatively impact our profitability and/or our future
        financial results.

    --  Our ability to meet cash needs depends upon certain factors,
        including our asset value, credit worthiness and the market
        value of our stock.



    CONTACT: Franklin Resources, Inc.
             Investor Relations:
             Brian Sevilla, 650-312-4091
             or
             Corporate Communications:
             Lisa Gallegos, 650-312-3395
             franklintempleton.com

    SOURCE: Franklin Resources, Inc.