San Mateo, CA, April 25, 2002 -- Franklin Resources, Inc. (Franklin Templeton Investments) (NYSE: BEN) today reported net income of $120.0 million, or $0.46 per share diluted, on revenues of $626.0 million for the quarter ended March 31, 2002, compared with net income of $118.5 million, or $0.45 per share diluted, on revenues of $618.2 million in the preceding quarter and net income of $131.7 million, or $0.54 per share diluted, on revenues of $577.4 million in the comparable quarter a year ago.

Operating income increased 4% this quarter over the prior quarter. Operating revenues were up this quarter as compared to last quarter as a result of higher investment management and underwriting and distribution fees, while operating expenses were slightly higher this quarter as compared to last quarter, principally as a result of higher underwriting and distribution expenses.

As of March 31, 2002, assets under management by the company's subsidiaries were $274.5 billion, as compared to $266.3 billion last quarter and $215.7 billion at this time last year. Simple monthly average assets under management during the current quarter were $267.9 billion compared to $256.4 billion in the preceding quarter and $224.9 billion in the same quarter a year ago. Equity assets now comprise 54% of total assets under management as compared to 53% last quarter and 62% at March 31, 2001. Fixed income assets now comprise 30% of total assets under management, as compared to 30% last quarter and 31% at the same time last year. Hybrid assets now account for 15% of total assets under management, as compared to 14% last quarter and 5% at the same time last year. For the quarters ended March 31, 2002 and December 31, 2001, sales and reinvested dividends exceeded redemptions ("net inflows") complex-wide by $5.0 billion and $6.0 billion respectively.

Second Quarter 2002 Highlights

• Performance and Products^1,2
  (See important footnotes in "Supplemental Information" section at the end of the release.)
• Over 75% of Franklin Templeton's long-term U.S. retail mutual fund assets were in funds ranked in the top two quartiles of their respective Lipper peer groups for the one-, three-, five- and 10-year periods ended March 31, 2002.^3,4
• Over 90% of Templeton equity mutual fund assets were in funds ranked in the top two quartiles of their respective Lipper peer groups for the one-, three-, five- and 10-year periods ended March 31, 2002. Templeton Foreign Fund and Templeton Growth Fund ranked in the top quartile of their respective Lipper peer groups for the one-, three-, five- and 10-year periods ended March 31, 2002 and outpaced their respective benchmark indices, the MSCI EAFE Index and MSCI World Index, for the same time periods.^3,5
• All six Mutual Series funds were rated 4 or 5 stars overall by Morningstar as of March 31, 2002.^6,7
• Over 95% of Franklin's tax-free income fund assets were in funds rated 4 or 5 stars overall by Morningstar as of March 31, 2002.^6,8 With over $47 billion in assets under management, Franklin is the largest tax-free fund manager in the mutual fund industry.
• Over 91% of Franklin Templeton Investment Corp.'s Canadian retail mutual fund assets were in funds rated 4 or 5 stars overall by Morningstar as of March 31, 2002.⁹
• Merged four Fiduciary retail funds into Franklin funds.
• Launched new equity and fixed income products for the Korean, Indian, Japanese and European markets.
• Launched offshore versions of U.S. hedge fund-of-fund strategies.
• Introduced Fiduciary Trust institutional investment strategies to Franklin Templeton Private Client Group's distribution effort including the new Templeton-Fiduciary Trust Global Equity All-Cap Portfolio.
• Launched first joint institutional strategy, FTI Institutional Core International Equity, which combines Templeton's international value equity strategy with Fiduciary Trust's growth-oriented capability.

• Global Business Developments
• Awarded special recognition for outstanding achievement for 9/11 response and ongoing communications with clients by Global Investor Magazine (UK).
• Introduced A, B and C share classes, raised the maximum contribution limit and added an Automatic Investment Plan to the 529 GIFT college savings plan.
• Completed the integration of Fiduciary Trust operations with Franklin Templeton Services in Florida.
• Held first FTI Institutional Consultant Conference representing 40 institutional investment management consultant firms.
• Introduced a new retirement R share class effective January 1, 2002 for Franklin Templeton's retirement business.
• FTIInstitutional.com introduced account statements for separate account clients. FTCI.com added account access for high net worth managed accounts. Introduced enhancements to timetoinvest.com web site features for plan participants, plan sponsors and brokers.
• Chief Web Officer Jennifer Bolt was named "E-Commerce Executive of the Year" by Fund Action. The publication recognized her critical role in AdvisorCentral.Com and her team's response to the 9/11 tragedy.

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: Institutional assets totaling approximately $16 billion are invested in U.S. Retail fund and annuity products and are disclosed in U.S. Retail assets in the above table. Total institutional and high net-worth assets at March 31, 2002 were approximately $94 billion, of which high net-worth assets comprised $11.1 billion.

Conference Call Information

As previously announced, members of the investment community and general public are invited to listen to the earnings conference call today, Thursday, April 25, 2002 at 1:30 p.m. Pacific Time. Access to the teleconference will be available via franklintempleton.com 10 minutes before the start of the call or by dialing (800) 230-1074 in the U.S. or (612) 288-0337 internationally.

A replay of the call will be archived on franklintempleton.com through May 2, 2002. The replay can also be accessed by calling (800) 475-6701 in the U.S. or (320) 365-3844 internationally and using access code #634228, after 5:00 p.m. Pacific Time on April 25 through 11:59 p.m. Pacific Time on May 2.

Franklin Templeton Investments provides global and domestic investment management services through its Franklin, Templeton, Mutual Series and Fiduciary Trust subsidiaries. The San Mateo, CA-based company has over 50 years of investment experience. For more information, please visit franklintempleton.com or call 1-800/DIAL BEN®.

Supplemental Information

1. 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. For more information on any U.S. Franklin Templeton fund, investors should request a prospectus containing more complete information, including sales charges, expenses and risks, from securities dealers or by calling Franklin Templeton Distributors, Inc. at 1-800/DIAL BEN® (1-800/342-5236). Investors should read the prospectus carefully before investing or sending money. Franklin Templeton Distributors, Inc., One Franklin Parkway, San Mateo, CA, is the funds' principal distributor and a wholly owned subsidiary of Franklin Resources, Inc.
2. Past performance does not guarantee future results. Morningstar ratings are based on Class A shares. Lipper rankings are based on Class A shares, with the exception of those for Mutual Series, which are based on Class Z shares, which are offered to qualified investors only and have no sales charges nor Rule 12b-1 fees. All asset data is based on 2/28/02 figures. Indices are unmanaged and one cannot invest directly in them. Unless otherwise noted, fund returns quoted reflect Class A shares. Performance returns, ratings and rankings for other classes may vary. Investment return and principal value will fluctuate with market conditions and an investor may experience a gain or loss when they sell their shares.
3. Lipper calculates averages by taking all the funds in a peer group and averaging their total returns for the periods indicated. Lipper total return calculations do not include sales charges or expense subsidization by the manager. Results may have been different if these factors had been considered.
4. Source: Lipper® Inc., 3/31/02. Of the eligible Franklin Templeton non-money market funds tracked by Lipper, 49, 45, 29 and 14 funds ranked in the top quartile and 22, 22, 24 and 24 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® Inc., 3/31/02. 10 out of 11 eligible Templeton equity funds ranked in the top two Lipper quartiles for the one-year period, 9 of 11 for the three-year period, 5 of 11 for the five-year period and 6 of 8 for the 10-year period, for their respective Lipper peer groups. Templeton Growth Fund Class A ranked 19 in a universe of 315 "Global Funds" for the one-year period, 23 of 215 for the three-year period, 29 of 134 for the five-year period and 4 of 27 for the 10-year period. Templeton Foreign Fund Class A ranked 27 in a universe of 776 "International Funds" for the one-year period, 33 of 564 for the three-year period, 70 of 375 for the five-year period and 12 of 71 for the 10-year period. Source for MSCI returns: Standard & Poor's Micropal.
6. Source: [Morningstar]© 3/31/02. Morningstar proprietary ratings reflect historical risk-adjusted performance as of 3/31/02. The ratings are subject to change every month. Past performance does not guarantee future results. Morningstar ratings are calculated from a fund's three-, five-, and 10-year average annual returns, if applicable, in excess of 90-day Treasury bill returns with appropriate fee adjustments, and a risk factor that reflects fund performance below 90-day T-bill returns. The top 10% of the funds in a broad asset class receive five stars, the next 22.5% receive four stars, and the next 35% receive three stars. Morningstar does not guarantee the accuracy of the information.
7. Source: [Morningstar]© 3/31/02. Based on Class A shares, 3 funds received four stars, and 3 received five stars.
8. Source: [Morningstar]© 3/31/02. Twenty Franklin tax-free income funds received four stars, and 7 received five stars.
9. Source: [Morningstar]© 3/31/02. Of the eligible Canadian funds rated by Morningstar, 5 received five stars and 10 received four stars.

Forward-Looking Statements

Statements in this press release regarding Franklin Resources, Inc.'s business which are not historical facts and or that speculate about future events are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to a number of risks, uncertainties and other important factors that could cause the actual results and outcomes to differ materially from those reflected in such forward-looking statements. These risks, uncertainties and other important factors are set forth below or are described in more detail in the "Risk Factors" section in Franklin's recent filings with the U.S. Securities and Exchange Commission, including the "Risk Factors" section of the 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, 2001.

• The levels of our assets under management are subject to significant fluctuations.
• We face strong competition from numerous and sometimes larger companies.
• Changes in the distribution channels on which we depend could reduce our revenues or hinder our growth.
• Previously announced revenue and cost synergies from the acquisition of Fiduciary Trust Company International may not be fully realized and may take longer to realize than originally anticipated.
• For the next several years, insurance costs may increase materially and we may not be able to obtain the same types or amounts of coverage.
• We may not recover all losses on insurance claims for property damage and business interruptions arising out of the terrorist attacks on September 11, 2001.