SAN MATEO, CA -- (Marketwire) -- 07/29/10 -- Franklin Resources, Inc. (Franklin Templeton Investments) (NYSE: BEN) today announced net income(1) of $360.5 million, or $1.58 per share diluted, on revenues of $1,534.1 million for the quarter ended June 30, 2010. For the quarter ended March 31, 2010, net income(1) was $356.7 million, or $1.55 per share diluted, on revenues of $1,413.1 million. For the quarter ended June 30, 2009, net income(1) was $297.7 million, or $1.28 per share diluted, on revenues of $1,073.6 million.

Operating income for the quarter ended June 30, 2010 was $521.6 million, as compared to $461.1 million for the prior quarter and $326.2 million for the quarter ended June 30, 2009. The company's non-operating income (expenses) for the quarter ended June 30, 2010 included $(7.3) million of investment and other (losses) income, net, as compared to $42.5 million for the prior quarter and $52.6 million for the quarter ended June 30, 2009.

Total assets under management by the company's subsidiaries were $570.5 billion at June 30, 2010, as compared to $586.8 billion at March 31, 2010 and $451.2 billion at June 30, 2009. Simple monthly average assets under management during the quarter ended June 30, 2010 were $583.1 billion, as compared to $561.2 billion in the prior quarter and $428.0 billion in the same quarter a year ago. Equity assets comprised 41% of total assets under management at June 30, 2010, as compared to 45% at March 31, 2010 and 46% at June 30, 2009. Fixed-income assets comprised 40% of total assets under management at June 30, 2010, as compared to 36% at March 31, 2010 and 33% at June 30, 2009. Hybrid and other assets accounted for 19% of total assets under management at June 30, 2010 and March 31, 2010, as compared to 21% at June 30, 2009. Net new flows for the quarter ended June 30, 2010 were $18.8 billion, as compared to $17.4 billion for the prior quarter and $6.0 billion for the same quarter a year ago.

Cash and cash equivalents and investments were $6.6 billion at June 30, 2010, as compared to $5.8 billion at September 30, 2009. Total stockholders' equity was $7.4 billion at June 30, 2010, as compared to $7.6 billion at September 30, 2009. The company had 225.4 million shares of common stock outstanding at June 30, 2010, as compared to 229.3 million shares outstanding at September 30, 2009. During the quarter ended June 30, 2010, the company repurchased 2.1 million shares of its common stock for a total cost of $212.3 million and had a net increase in debt outstanding of $828.7 million.

Lipper Performance Rankings of Franklin Templeton's U.S.-Registered
Long-Term Mutual Funds(2),(3),(4):

                                            Period Ended June 30, 2010
                                        ----------------------------------
                                           Percent of Assets in Top Two
                                                    Quartiles
                                        ----------------------------------
                                        1-Year   3-Year   5-Year   10-Year
                                        -------  -------  -------  -------

Franklin Templeton(5)                        65%      83%      87%      91%
Franklin Templeton Equity(6)                 77%      82%      89%      91%
Franklin Templeton Fixed-Income(7)           51%      84%      86%      91%
Franklin Equity(8)                           89%      85%      86%      88%
Templeton Equity(9)                          74%      65%      88%      92%
Mutual Series Equity(10)                     38%     100%     100%     100%
Franklin Templeton Taxable
 Fixed-Income(11)                            55%      69%      72%      74%
Franklin Templeton Tax-Free
 Fixed-Income(12)                            49%      92%      94%     100%

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

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® (1-800/342-5236). Please read the prospectus carefully before investing.

Franklin Resources, Inc.
Preliminary Condensed Consolidated Income Statements(13)
Unaudited
(in thousands, except per share data and assets under management)

                   Three months ended             Nine months ended
             ----------------------------  ------------------------------
                        June 30,                       June 30,
             ----------------------------  ------------------------------
                                     %                               %
               2010       2009     Change     2010        2009     Change
             ---------  ---------  ------  ----------  ----------  ------
Operating
 Revenues
Investment
 management
 fees        $ 915,866  $ 625,025      47% $2,558,607  $1,778,235      44%
Underwriting
 and
 distribution
 fees          529,313    365,217      45%  1,514,147     974,801      55%
Shareholder
 servicing
 fees           72,976     67,113       9%    213,895     199,969       7%
Consolidated
 sponsored
 investment
 products
 income, net     1,457      2,908     (50%)     2,445       6,555     (63%)
Other, net      14,459     13,295       9%     35,501      (4,400)     NM
             ---------  ---------  ------  ----------  ----------  ------
  Total
   operating
   revenues  1,534,071  1,073,558      43%  4,324,595   2,955,160      46%
             ---------  ---------  ------  ----------  ----------  ------
Operating
 Expenses
Underwriting
 and
 distribution  519,607    350,675      48%  1,473,657     933,738      58%
Compensation
 and
 benefits      280,333    230,943      21%    805,686     711,738      13%
Information
 systems,
 technology
 and
 occupancy      76,018     68,203      11%    214,236     202,199       6%
Advertising
 and
 promotion      37,976     27,888      36%    110,945      78,815      41%
Amortization
 of deferred
 sales
 commissions    50,121     32,865      53%    142,949     103,231      38%
Other           48,452     36,798      32%    127,446     107,567      18%
             ---------  ---------  ------  ----------  ----------  ------
  Total
   operating
   expenses  1,012,507    747,372      35%  2,874,919   2,137,288      35%
             ---------  ---------  ------  ----------  ----------  ------
Operating
 Income        521,564    326,186      60%  1,449,676     817,872      77%
             ---------  ---------  ------  ----------  ----------  ------
Other Income
 (Expenses)
Consolidated
 sponsored
 investment
 products
 (losses)
 gains, net    (14,670)    44,503      NM       6,071     (14,045)     NM
Investment
 and other
 (losses)
 income, net    (7,262)    52,574      NM      68,204     (26,341)     NM
Interest
 expense        (4,836)      (211)     NM      (6,514)     (3,503)     86%
             ---------  ---------  ------  ----------  ----------  ------
  Other
   (expenses)
   income,
   net         (26,768)    96,866      NM      67,761     (43,889)     NM
             ---------  ---------  ------  ----------  ----------  ------
Income
 before
 taxes         494,796    423,052      17%  1,517,437     773,983      96%
Taxes on
 income        135,113    116,204      16%    441,795     248,134      78%
             ---------  ---------  ------  ----------  ----------  ------
Net Income     359,683    306,848      17%  1,075,642     525,849     105%
  Less: Net
   (loss)
   income
   attributable
   to noncon-
   trolling
   interests      (812)     9,132      NM       2,859      (3,573)     NM
             =========  =========  ======  ==========  ==========  ======
Net Income
 attributable
 to Franklin
 Resources,
 Inc.        $ 360,495  $ 297,716      21% $1,072,783  $  529,422     103%
             =========  =========  ======  ==========  ==========  ======

Earnings per
 Share(14)
  Basic      $    1.59  $    1.28      24% $     4.70  $     2.28     106%
  Diluted         1.58       1.28      23%       4.68        2.27     106%
Dividends
 per Share   $    0.22  $    0.21       5% $     3.66  $     0.63     481%
Average
 Shares
 Outstanding(14)
 (in thousands)
  Basic        225,626    229,804      (2%)   226,858     230,871    (2%)
  Diluted      226,806    230,819      (2%)   228,140     231,831    (2%)
Operating
 Margin(15)         34%        30%                 34%         28%

Assets Under
 Management(16)
 (in billions)
Beginning of
 period      $   586.8  $   391.1      50% $    523.4  $    507.3       3%
  Long-term
   sales          51.0       27.9      83%      139.6        75.5      85%
  Long-term
   redemptions   (33.6)     (22.4)     50%      (91.1)      (92.3)     (1%)
  Net cash
   management      1.4        0.5     180%        2.0        (0.9)     NM
             ---------  ---------  ------  ----------  ----------  ------
    Net new
     flows        18.8        6.0     213%       50.5       (17.7)     NM
  Reinvested
   distributions   3.1        2.7      15%        8.9        11.7    (24%)
             ---------  ---------  ------  ----------  ----------  ------
    Net flows     21.9        8.7     152%       59.4        (6.0)     NM
  Distributions   (3.7)      (3.3)     12%      (10.9)      (14.8)    (26%)
  (Depreciation)
   appreciation
   and other     (34.5)      54.7      NM        (1.4)      (35.3)    (96%)
             ---------  ---------  ------  ----------  ----------  ------
End of
 period      $   570.5  $   451.2      26% $    570.5  $    451.2      26%
             =========  =========  ======  ==========  ==========  ======
Simple
 Monthly
 Average for
 Period      $   583.1  $   428.0      36% $    557.6  $    424.6      31%





Franklin Resources, Inc.
Preliminary Condensed Consolidated Income Statements(13)
Unaudited
(in thousands, except per share data, employees and billable shareholder
 accounts)
                                  Three months ended
             -------------------------------------------------------------
                                     %
             30-Jun-10  31-Mar-10  Change  31-Dec-09  30-Sep-09  30-Jun-09
             ---------  ---------  ------  ---------  ---------  ---------
Operating
 Revenues
Investment
 management
 fees        $ 915,866  $ 836,077      10% $ 806,664  $ 724,953  $ 625,025
Underwriting
 and
 distribution
 fees          529,313    496,781       7%   488,053    433,361    365,217
Shareholder
 servicing
 fees           72,976     71,376       2%    69,543     67,381     67,113
Consolidated
 sponsored
 investment
 products
 income, net     1,457        540     170%       448      1,640      2,908
Other, net      14,459      8,339      73%    12,703     11,592     13,295
             ---------  ---------  ------  ---------  ---------  ---------
  Total
   operating
   revenues  1,534,071  1,413,113       9% 1,377,411  1,238,927  1,073,558
             ---------  ---------  ------  ---------  ---------  ---------
Operating
 Expenses
Underwriting
 and
 distribution  519,607    487,023       7%   467,027    418,284    350,675
Compensation
 and
 benefits      280,333    271,041       3%   254,312    246,773    230,943
Information
 systems,
 technology
 and
 occupancy      76,018     69,608       9%    68,610     71,999     68,203
Advertising
 and
 promotion      37,976     38,121       0%    34,848     37,314     27,888
Amortization
 of deferred
 sales
 commissions    50,121     46,282       8%    46,546     39,747     32,865
Other           48,452     39,903      21%    39,091     40,088     36,798
             ---------  ---------  ------  ---------  ---------  ---------
  Total
   operating
   expenses  1,012,507    951,978       6%   910,434    854,205    747,372
             ---------  ---------  ------  ---------  ---------  ---------
Operating
 Income        521,564    461,135      13%   466,977    384,722    326,186
             ---------  ---------  ------  ---------  ---------  ---------
Other Income
 (Expenses)
Consolidated
 sponsored
 investment
 products
 (losses)
 gains, net    (14,670)     5,669      NM     15,072     42,830     44,503
Investment
 and other
 (losses)
 income, net    (7,262)    42,488      NM     32,978     87,338     52,574
Interest
 expense        (4,836)      (936)    417%      (742)      (268)      (211)
             ---------  ---------  ------  ---------  ---------  ---------
  Other
   (expenses)
   income,
   net         (26,768)    47,221      NM     47,308    129,900     96,866
             ---------  ---------  ------  ---------  ---------  ---------
Income
 before
 taxes         494,796    508,356      (3%)  514,285    514,622    423,052
Taxes on
 income        135,113    149,946     (10%)  156,736    136,180    116,204
             ---------  ---------  ------  ---------  ---------  ---------
Net Income     359,683    358,410       0%   357,549    378,442    306,848
  Less: Net
   (loss)
   income
   attributable
   to noncon-
   trolling
   interests      (812)     1,725      NM      1,946     11,086      9,132
             ---------  ---------  ------  ---------  ---------  ---------
Net Income
 attributable
 to Franklin
 Resources,
 Inc.        $ 360,495  $ 356,685       1% $ 355,603  $ 367,356  $ 297,716
             =========  =========  ======  =========  =========  =========

Earnings per
 Share(14)
  Basic      $    1.59  $    1.56       2% $    1.55  $    1.60  $    1.28
  Diluted         1.58       1.55       2%      1.54       1.59       1.28
Dividends
 per Share   $    0.22  $    0.22       0% $    3.22  $    0.21  $    0.21
Average
 Shares
 Outstanding(14)
 (in thousands)
  Basic        225,626    227,046      (1%)  227,892    228,741    229,804
  Diluted      226,806    228,300      (1%)  229,251    230,061    230,819

Operating
 Margin(15)         34%        33%                34%        31%        30%

Employees        7,869      7,758       1%     7,752      7,745      7,847

Billable
 Shareholder
 Accounts
 (in millions)    23.3       22.7       3%      22.2       21.4       22.4



ASSETS UNDER MANAGEMENT BY INVESTMENT OBJECTIVE
(in billions)                      Three months ended
               ------------------------------------------------------------
               30-Jun-10 31-Mar-10 % Change   31-Dec-09 30-Sep-09 30-Jun-09
               --------- --------- --------   --------- --------- ---------
  Equity
    Global/
     interna-
     tional    $   172.9 $   193.2      (11%) $   189.5 $   183.1 $   153.1
    Domestic
     (U.S.)         63.2      69.8       (9%)      66.3      63.9      56.7
               --------- --------- --------   --------- --------- ---------
    Total
     equity        236.1     263.0      (10%)     255.8     247.0     209.8
               --------- --------- --------   --------- --------- ---------

  Hybrid           101.6     107.3       (5%)     104.0      98.2      85.8

  Fixed-
   Income
    Tax-free        73.8      71.8        3%       69.7      69.6      62.4
    Taxable:
      Global/
       interna-
       tional      109.4      97.0       13%       77.5      63.3      50.2
      Domestic
       (U.S.)       43.3      41.9        3%       40.4      38.4      35.5
               --------- --------- --------   --------- --------- ---------
    Total
     fixed-
     income        226.5     210.7        7%      187.6     171.3     148.1

  Cash
   Management(17)    6.3       5.8        9%        6.1       6.9       7.5
               --------- --------- --------   --------- --------- ---------
Total Ending
 Assets Under
 Management    $   570.5 $   586.8       (3%) $   553.5 $   523.4 $   451.2
               ========= ========= ========   ========= ========= =========

Simple Monthly
 Average
 Assets Under
 Management    $   583.1 $   561.2        4%  $   534.9 $   488.3 $   428.0




ASSETS UNDER MANAGEMENT AND FLOWS - UNITED STATES AND INTERNATIONAL
(in billions)
                              As of and for the three months ended
                      ----------------------------------------------------
                                 % of              % of              % of
                      30-Jun-10  Total  31-Mar-10  Total  30-Jun-09  Total
                      ---------  -----  ---------  -----  ---------  -----
Long-Term Sales
  United States       $    25.0     49% $    24.4     53% $    18.1     65%
  International            26.0     51%      22.0     47%       9.8     35%
                      ---------  -----  ---------  -----  ---------  -----
  Total Long-Term
   Sales              $    51.0    100% $    46.4    100% $    27.9    100%
                      =========  =====  =========  =====  =========  =====

Long-Term Redemptions
  United States       $   (18.3)    54% $   (16.1)    55% $   (12.7)    57%
  International           (15.3)    46%     (13.2)    45%      (9.7)    43%
                      ---------  -----  ---------  -----  ---------  -----
  Total Long-Term
   Redemptions        $   (33.6)   100% $   (29.3)   100% $   (22.4)   100%
                      =========  =====  =========  =====  =========  =====

Assets Under Management
  United States       $   409.9     72% $   425.2     72% $   339.2     75%
  International           160.6     28%     161.6     28%     112.0     25%
                      ---------  -----  ---------  -----  ---------  -----
  Total Assets Under
   Management         $   570.5    100% $   586.8    100% $   451.2    100%
                      =========  =====  =========  =====  =========  =====





ASSETS UNDER MANAGEMENT AND FLOWS BY INVESTMENT OBJECTIVE
(in billions)                                    Three months ended
                                           -------------------------------
                                           30-Jun-10  31-Mar-10  30-Jun-09
                                           ---------  ---------  ---------
Global/international equity
   Beginning assets                        $   193.2  $   189.5  $   124.7
   Long-term sales                              11.7       11.7        8.5
   Long-term redemptions                       (11.6)     (11.9)      (8.5)
   Net exchanges                                (0.3)      (0.1)       0.3
                                           ---------  ---------  ---------
     Net new flows                              (0.2)      (0.3)       0.3
   Reinvested distributions                      0.1        0.2        0.1
                                           ---------  ---------  ---------
     Net flows                                  (0.1)      (0.1)       0.4
   Distributions                                (0.1)      (0.1)      (0.2)
   (Depreciation) appreciation and other       (20.1)       3.9       28.2
                                           ---------  ---------  ---------
   Ending assets                               172.9      193.2      153.1
                                           ---------  ---------  ---------
Domestic (U.S.) equity
   Beginning assets                             69.8       66.3       48.5
   Long-term sales                               4.3        3.0        2.6
   Long-term redemptions                        (4.0)      (3.2)      (2.3)
   Net exchanges                                  --         --         --
                                           ---------  ---------  ---------
     Net new flows                               0.3       (0.2)       0.3
   Reinvested distributions                      0.1         --        0.1
                                           ---------  ---------  ---------
     Net flows                                   0.4       (0.2)       0.4
   Distributions                                (0.1)        --       (0.1)
   (Depreciation) appreciation and other        (6.9)       3.7        7.9
                                           ---------  ---------  ---------
   Ending assets                                63.2       69.8       56.7
                                           ---------  ---------  ---------
Hybrid
   Beginning assets                            107.3      104.0       75.0
   Long-term sales                               4.2        4.1        2.9
   Long-term redemptions                        (4.0)      (3.1)      (2.7)
   Net exchanges                                (0.1)        --        0.1
                                           ---------  ---------  ---------
     Net new flows                               0.1        1.0        0.3
   Reinvested distributions                      1.4        0.7        1.2
                                           ---------  ---------  ---------
     Net flows                                   1.5        1.7        1.5
   Distributions                                (1.6)      (1.0)      (1.4)
   (Depreciation) appreciation and other        (5.6)       2.6       10.7
                                           ---------  ---------  ---------
   Ending assets                               101.6      107.3       85.8
                                           ---------  ---------  ---------
Tax-free fixed-income
   Beginning assets                             71.8       69.7       59.3
   Long-term sales                               3.3        3.6        3.3
   Long-term redemptions                        (2.4)      (2.3)      (1.9)
   Net exchanges                                  --         --         --
                                           ---------  ---------  ---------
     Net new flows                               0.9        1.3        1.4
   Reinvested distributions                      0.5        0.5        0.5
                                           ---------  ---------  ---------
     Net flows                                   1.4        1.8        1.9
   Distributions                                (0.8)      (0.8)      (0.7)
   Appreciation and other                        1.4        1.1        1.9
                                           ---------  ---------  ---------
   Ending assets                           $    73.8  $    71.8  $    62.4
                                           ---------  ---------  ---------

Global/international taxable fixed-income
   Beginning assets                        $    97.0  $    77.5  $    43.0
   Long-term sales                              24.0       20.3        6.8
   Long-term redemptions                        (8.9)      (5.9)      (4.7)
   Net exchanges                                 1.0        0.8        0.8
                                           ---------  ---------  ---------
     Net new flows                              16.1       15.2        2.9
   Reinvested distributions                      0.6        0.5        0.4
                                           ---------  ---------  ---------
     Net flows                                  16.7       15.7        3.3
   Distributions                                (0.6)      (0.5)      (0.5)
   (Depreciation) appreciation and other        (3.7)       4.3        4.4
                                           ---------  ---------  ---------
   Ending assets                               109.4       97.0       50.2
                                           ---------  ---------  ---------
Domestic (U.S.) taxable fixed-income
   Beginning assets                             41.9       40.4       32.5
   Long-term sales                               3.5        3.7        3.8
   Long-term redemptions                        (2.7)      (2.9)      (2.3)
   Net exchanges                                 0.2         --       (0.1)
                                           ---------  ---------  ---------
     Net new flows                               1.0        0.8        1.4
   Reinvested distributions                      0.4        0.2        0.4
                                           ---------  ---------  ---------
     Net flows                                   1.4        1.0        1.8
   Distributions                                (0.5)      (0.3)      (0.4)
   Appreciation and other                        0.5        0.8        1.6
                                           ---------  ---------  ---------
   Ending assets                                43.3       41.9       35.5
                                           ---------  ---------  ---------
Cash management
   Beginning assets                              5.8        6.1        8.1
   Net cash management                           1.4        0.3        0.5
   Net exchanges                                (0.8)      (0.7)      (1.1)
                                           ---------  ---------  ---------
     Net new flows                               0.6       (0.4)      (0.6)
   Reinvested distributions                       --         --         --
                                           ---------  ---------  ---------
     Net flows                                   0.6       (0.4)      (0.6)
   Distributions                                  --         --         --
   (Depreciation) appreciation and other        (0.1)       0.1         --
                                           ---------  ---------  ---------
   Ending assets                                 6.3        5.8        7.5
                                           ---------  ---------  ---------
Total
   Beginning assets                            586.8      553.5      391.1
   Long-term sales                              51.0       46.4       27.9
   Long-term redemptions                       (33.6)     (29.3)     (22.4)
   Long-term net exchanges                       0.8        0.7        1.1
   Net cash management                           1.4        0.3        0.5
   Cash management net exchanges                (0.8)      (0.7)      (1.1)
                                           ---------  ---------  ---------
     Net new flows                              18.8       17.4        6.0
   Reinvested distributions                      3.1        2.1        2.7
                                           ---------  ---------  ---------
     Net flows                                  21.9       19.5        8.7
   Distributions                                (3.7)      (2.7)      (3.3)
   (Depreciation) appreciation and other       (34.5)      16.5       54.7
                                           ---------  ---------  ---------
Ending Assets Under Management             $   570.5  $   586.8  $   451.2
                                           =========  =========  =========

Conference Call Information

Pre-recorded audio commentary on the third quarter results from Franklin Resources, Inc.'s President and Chief Executive Officer, Greg Johnson, and Executive Vice President and Chief Financial Officer, Ken Lewis, will be available today at approximately 9:15 a.m. Eastern Time. They will also lead a live teleconference today at 4:30 p.m. Eastern Time to answer questions.

Access to the pre-recorded audio commentary and accompanying slides will be available at franklinresources.com. The pre-recorded audio commentary will also be available by dialing (800) 642-1687 in the U.S. and Canada or (706) 645-9291 internationally, using access code 83772434, anytime through 11:59 p.m. Eastern Time on August 12, 2010.

Access to the live teleconference will be available at franklinresources.com 10 minutes before the start of the call or by dialing (877) 480-6346 in the U.S. and Canada or (706) 902-1906 internationally. A replay of the call can also be accessed by calling (800) 642-1687 in the U.S. and Canada or (706) 645-9291 internationally, using access code 83772101, after 5:30 p.m. Eastern Time today through 11:59 p.m. Eastern Time on August 12, 2010.

Questions regarding the pre-recorded audio commentary or live teleconference should be directed to Franklin Resources, Inc., Investor Relations at (650) 312-4091 or Corporate Communications at (650) 525-7458.

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, Fiduciary Trust, Darby and Bissett investment teams. The San Mateo, CA-based company has more than 60 years of investment experience and over $570 billion in assets under management as of June 30, 2010. For more information, please visit franklinresources.com.

Notes

 1. Net income represents net income attributable to Franklin Resources,
    Inc.
 2. Nothing in this section 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 funds' principal
    distributor and a wholly-owned subsidiary of Franklin Resources, Inc.
 3. Lipper rankings for Franklin Templeton U.S.-registered mutual funds are
    based on Class A shares. Franklin Templeton funds are compared against
    a universe of all share classes. Performance rankings for other share
    classes may differ.
 4. Lipper calculates averages by taking all the funds and share classes in
    a peer group and averaging their total returns for the periods
    indicated. Lipper tracks 147 peer groups of U.S. retail mutual funds,
    and the groups vary in size from 8 to 1,027 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.
 5. Source: Lipper® Inc., 6/30/10. Of the eligible Franklin Templeton
    long-term mutual funds tracked by Lipper, 33, 37, 35 and 46 funds
    ranked in the top quartile and 31, 35, 33 and 18 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® Inc., 6/30/10. Of the eligible Franklin Templeton
    equity mutual funds tracked by Lipper, 21, 20, 13 and 17 funds ranked
    in the top quartile and 17, 17, 17 and 10 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® Inc., 6/30/10. Of the eligible Franklin Templeton
    non-money market fixed-income mutual funds tracked by Lipper, 12, 17,
    22 and 29 funds ranked in the top quartile and 14, 18, 16 and 8 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® Inc., 6/30/10. Of the eligible Franklin equity mutual
    funds tracked by Lipper, 15, 14, 10 and 10 funds ranked in the top
    quartile and 12, 11, 9 and 5 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® Inc., 6/30/10. Of the eligible Templeton equity
    mutual funds tracked by Lipper, 4, 3, 0 and 4 funds ranked in the top
    quartile and 3, 3, 5 and 2 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® Inc., 6/30/10. Of the eligible Mutual Series equity
    mutual funds tracked by Lipper, 2, 3, 3 and 3 funds ranked in the top
    quartile and 2, 3, 3 and 3 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® Inc., 6/30/10. Of the eligible Franklin Templeton
    non-money market taxable fixed-income mutual funds tracked by Lipper,
    2, 5, 4 and 4 funds ranked in the top quartile and 4, 2, 4 and 1 funds
    ranked in the second quartile, for the one-, three-, five- and 10-year
    periods, respectively, for their respective Lipper peer groups.
12. Source: Lipper® Inc., 6/30/10. Of the eligible Franklin Templeton
    non-money market tax-free fixed-income mutual funds tracked by Lipper,
    10, 12, 18 and 25 funds ranked in the top quartile and 10, 16, 12 and 7
    funds ranked in the second quartile, for the one-, three-, five- and
    10-year periods, respectively, for their respective Lipper peer groups.
13. Effective October 1, 2009, the company adopted a new accounting
    standard that modifies the presentation of consolidated net income to
    include the amount attributable to noncontrolling interests for all
    periods presented.
14. Effective October 1, 2009, the company retrospectively adopted a new
    accounting standard that modifies the earnings per share calculations
    to recognize its nonvested stock awards and nonvested stock unit awards
    that contain nonforfeitable rights to dividends or dividend equivalents
    as if they were a separate class of stock.
15. Defined as operating income divided by operating revenues.
16. Assets under management include assets for which the company provides
    various investment management services as described in Item I
    "Business" in Part I of its Form 10-K for the fiscal year ended
    September 30, 2009.
17. Cash management includes both U.S.-registered money market funds and
    non-U.S. registered funds with similar investment objectives.

Forward-Looking Statements

The financial results in this press release are preliminary. Statements in this press release regarding Franklin Resources, Inc. ("Franklin") and its subsidiaries, which are not historical facts, are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. When used in this press release, words or phrases generally written in the future tense and/or preceded by words such as "will", "may", "could", "expect", "believe", "anticipate", "intend", "plan", "seek", "estimate" or other similar words are forward-looking statements.

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 actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. We caution you therefore against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance.

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, 2009 and Franklin's subsequent Quarterly Reports on Form 10-Q:

--  Volatility and disruption of the capital and credit markets, and
    adverse changes in the global economy, may significantly affect our
    results of operations and may put pressure on our financial results.
--  The amount and mix of our assets under management are subject to
    significant fluctuations.
--  We are subject to extensive and complex, overlapping and frequently
    changing rules, regulations and legal interpretations.
--  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.
--  Changes in tax laws or exposure to additional income tax liabilities
    could have a material impact on our financial condition, results of
    operations and liquidity.
--  Any significant limitation or failure of our software applications,
    technology or other systems that are critical to our operations could
    constrain our operations.
--  Our investment management business operations are complex and a failure
    to properly perform operational tasks or the misrepresentation of our
    products and services could have an adverse effect on our revenues and
    income.
--  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 third-party distribution and sales channels on which we
    depend could reduce our revenues and hinder our growth.
--  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 significant 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 and other sponsored investment
    products we advise.
--  Regulatory and governmental examinations and/or investigations, civil
    litigation relating to previously-settled regulatory and governmental
    investigations, 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
    the market value of our assets, operating cash flows and our perceived
    credit worthiness.
--  Diverse and strong competition limits the interest rates that we can
    charge on consumer loans.
--  Our business could be negatively affected if we or our banking
    subsidiaries fail to remain well capitalized, and liquidity needs could
    affect our banking business.
--  We are dependent on the earnings of our subsidiaries.

Any forward-looking statement made by us in this press release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.