San Mateo, CA, October 28, 2004 - Franklin Resources, Inc. (Franklin Templeton Investments) (NYSE: BEN) today reported net income of $199.9 million, or $0.79 per share diluted on revenues of $881.7 million for the quarter ended September 30, 2004.  In the quarter ended June 30, 2004, net income was $173.9 million, or $0.69 per share diluted, on revenues of $867.8 million.  For the quarter ended September 30, 2003, net income was $152.1 million, or $0.61 per share diluted on revenues of $724.6 million.  Operating income increased 8% this quarter over the prior quarter and increased 30% over the same quarter in the prior year.

Net income for the year ended September 30, 2004, was $718.9 million, or $2.85 per share diluted, on revenues of $3,438.2 million as compared to net income of $502.8 million, or $1.97 per share diluted, on revenues of $2,632.1 million for the year ended September 30, 2003.  Operating income increased 46% as compared to the prior year reflecting a 26% increase in simple monthly average assets under management.   Results for the year ended September 30, 2004 include an $86.5 million ($68.4 million, net of taxes) provision for governmental investigations, proceedings and actions. 

As of September 30, 2004, assets under management by the company's subsidiaries were $361.9 billion, as compared to $350.8 billion last quarter and $301.9 billion at this time last year.  Simple monthly average assets under management during the current quarter were $353.3 billion compared to $347.8 billion in the preceding quarter and $294.0 billion in the same quarter a year ago.  Equity assets now comprise 55% of total assets under management as compared to 56% last quarter and 51% at September 30, 2003.  Fixed-income assets now comprise 27% of total assets under management as compared to 27% last quarter and 32% at the same time last year.  As of September 30, 2004, hybrid assets account for 16% of total assets under management as compared to 16% last quarter and 15% at September 30, 2003.  Sales exceeded redemptions by $6.6 billion for the current quarter compared to $2.0 billion for the prior quarter and $4.9 billion for the comparable quarter a year ago.

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Update to 4th Quarter Earnings
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