San Mateo, CA, April 26, 2001 -- Franklin Resources, Inc. (Franklin Templeton Investments) (NYSE: BEN) today reported net income of $131.7 million, or $0.54 per share diluted, on revenues of $577.4 million for the quarter ended March 31, 2001, compared with net income of $149.5 million, or $0.61 ($0.56 excluding specific net realized gains) per share diluted, on revenues of $564.1 million in the preceding quarter and net income of $143.4 million, or $0.58 per share diluted, on revenues of $612.5 million in the comparable quarter a year ago. Operating revenues for this quarter increased 2% from the quarter ended December 31, 2000, primarily due to the increase in sales activity, which caused an increase in underwriting and distribution fee revenue, while investment management fees decreased due to a decline in average assets under management for the period. The company's operating expenses were up this quarter as compared to last quarter principally due to the increase in underwriting and distribution expenses related to the increased sales activity, increased advertising and promotional expenses and increased technology costs related to the company's continuing investment in this segment of the business. Net income for the six months ended March 31, 2001, was $281.1 million, or $1.15 per share diluted, on revenues of $1,141.5 million as compared to net income of $280.9 million, or $1.13 per share diluted, on revenues of $1,178.2 million a year ago. This quarter included pre-tax $8.2 million of non-operating income related to the $32.8 million gain on the sale of the company's headquarters in July 2000. The gain will be recognized through the third fiscal quarter of 2001.

As of March 31, 2001, assets under management by the company's subsidiaries were $215.7 billion, as compared to $226.9 billion last quarter and $233.4 billion at this time last year. Simple monthly average assets under management during the current quarter were $224.9 billion compared to $226.5 billion in the preceding quarter and $231.0 billion in the same quarter a year ago. Equity assets now comprise 62% of total assets under management as compared to 67% at March 31, 2000. Fixed income assets now comprise 31% of total assets under management, as compared to 27% at the same time last year. For the quarter ended March 31, 2001, sales and reinvested dividends exceeded redemptions ("net inflows") complex-wide by $1.8 billion, and in the quarter ended December 31, 2000 net inflows were $2.6 billion. In the quarter ended March 31, 2000, redemptions exceeded sales and reinvested dividends ("net outflows") by $2.1 billion.

Franklin Resources, Inc.'s acquisition of Fiduciary Trust Company International was completed on April 10, 2001. The pro-forma combined entity had approximately $260.8 billion in assets under management worldwide as of March 31, 2001, approximately $45.1 billion of which were Fiduciary Trust Company International assets and are not included in this quarter's results. "We are very excited about building a solid future with Fiduciary Trust Company International," said Charles B. Johnson, chief executive officer of Franklin Resources, Inc. "Our investment management styles are complementary in almost every category, and our combined organization is better positioned for market leadership in the fastest-growing segments of the investment management industry such as the institutional and high net worth markets. Together we will focus exclusively on meeting the investment management and service needs of financial advisors, private clients and institutions worldwide."

Second Quarter 2001 Highlights

• Performance and Products
• For the 3- and 12-month periods ended March 31, 2001, over 70% of Franklin Templeton U.S. retail equity assets placed in the top quartile for their respective Lipper categories.
• Over 98% of Templeton Class A assets ranked in the top quartile of their Lipper categories for one-year performance as of March 31, 2001.
• Ninety-eight percent of Franklin tax-free income Class A assets were rated four- or five-star by Morningstar. More than 85% of such assets ranked in the top half of their Lipper categories for 12-month yield for the period ended March 31, 2001.
• Three-fourths of Franklin taxable fixed income Class A assets ranked in the top quartile of their Lipper categories for 12-month yield, while over 97% of such assets ranked in the top half of their categories for one-year performance for the period ended March 31, 2001.
• Barron's "The Best of the Mutual Fund Families" survey ranked Franklin Templeton Investments #8 for 2000 overall performance out of 84 fund families, up from #39 in 1999.
• More than 80% of Mutual Series assets placed in the top quartile of their respective Lipper categories for the one-year period ended March 31, 2001, and in the top decile for the three-month period ended March 31, 2001.
• Franklin MicroCap Value Fund secured the #1 spot in Lipper's small-cap value category for the three months ended March 31, 2001, while Franklin Value Fund and Franklin Large Cap Value Fund ranked in the top decile of their respective categories for the same period.
• Franklin Income Fund and Mutual Discovery Fund ranked #1 in their Lipper categories for the one-year period ended March 31, 2001.
• Standard & Poor's Micropal named Franklin Templeton India as "India's Best Performing Mutual Fund House" for the year 2000.
• Templeton Canadian Stock Fund returned 14.6% and Bissett Canadian Equity Fund returned 7.5% for the year ended March 31, 2001, outperforming their benchmark TSE 300 Total Return Index's return of negative 18.6%.
• The following equity funds ranked in the top 10% of their respective Lipper categories, based on Class A share performance for the one-year period ended March 31, 2001: Templeton Growth Fund, Franklin Growth Fund, Mutual Discovery Fund, Templeton Foreign Fund, Mutual European Fund, Templeton International Fund, Franklin Income Fund, Mutual Financial Services Fund, Franklin Utilities Fund, Franklin U.S. Long-Short Fund, Franklin Convertible Securities Fund, Franklin Dynatech Fund.

• Global Business Developments
• Signed a 10-year technology service agreement with IBM to provide technology services, principally data center management and distributed server operations.
• Received license to establish representative office in Beijing.
• Franklin Templeton Investments Japan launched Japan Open Fund and Nihon-kabu Open Fund in the Japanese market.
• Introduced two new commingled funds for qualified retirement plans to strengthen presence in non-U.S. institutional markets.
• Franklin Templeton Private Client Group's municipal fixed income portfolio was selected to be offered in the Goldman Sachs Private Money Manager and Merrill Lynch Consults programs.
• Franklin Templeton Investments Corp. was selected as a winner for the "Canada's Top Employers of Youth Awards" by The Conference Board of Canada.

• Global Service and Distribution Enhancements
• More than 10,000 investment representatives attended workshops in 44 states on growing their retirement plan business.
• Announced partnership with three major financial services firms to launch an industry-wide Internet portal that will provide access to consolidated views of clients' holdings.
• Added a self-directed brokerage account feature to the business retirement plan division's qualified plan product line-up.
• Introduced portfolio manager video commentaries to franklintempleton.com's shareholder and financial professional sites, and added a monthly Web-based newsletter for shareholders.
• Dalbar rated franklintempleton.com #3 among financial professional Web sites.
• Launched a new Web site in Japan and enhanced capabilities on sites in the Netherlands, Luxembourg and Germany.

1 EBITDA Margin: Earnings before interest, taxes on income, depreciation and the amortization of intangibles divided by total revenues.
2 Operating Margin: Operating income divided by total operating revenues.

1 EBITDA Margin: Earnings before interest taxes on income, depreciation and the amortization of intangibles divided by total revenues.
2 Operating Margin: Operating income divided by total operating revenues.

Note: A significant number of institutional assets are invested in U.S. Retail funds and are disclosed in that category in the above table. Total institutional assets at March 31, 2001 were over $45 billion.

FIDUCIARY TRUST COMPANY INTERNATIONAL

Acquisition Details

• Acquisition closed on April 10, 2001.
• Each share of Fiduciary Trust Company International common stock was exchanged for 2.7744 shares of Franklin Resources, Inc. common stock, resulting in the issuance in the aggregate of approximately 20,187,000 shares of Franklin Resources, Inc. common stock.
• Valuation of the shares issued in exchange for Fiduciary Trust Company International shares is approximately $775 million.
• Excess purchase price over fair value of assets acquired (goodwill) estimated at $580 million, will be amortized over 40 years. Intangible assets acquired are estimated at $240 million, and will be amortized over 15 years. Final valuation for accounting purposes is still in progress.
• Expenses of $33.7 million are estimated for the year ended April 2002 relating to the employee retention pool agreed to in the acquisition.

Integration Update

• Anne Tatlock joined Franklin Resources Inc.'s Office of the Chairman and Board of Directors.
• Introduced Franklin Global Growth Fund and Franklin Global Aggressive Growth Fund in the U.S., Franklin Global Growth Fund in Canada, and Franklin European Growth Fund and Franklin Global Growth Fund in Luxembourg. Fiduciary Trust Company International is advising these funds.
• Approximately $46 million in synergies, estimated at the time the deal was announced, are expected to be realized by the second anniversary of the transaction's close.