San Mateo, CA, July 22, 2004 - Franklin Resources, Inc. (Franklin Templeton Investments) (NYSE: BEN) today reported net income of $173.9 million, or $0.69 per share diluted on revenues of $862.8 million for the quarter ended June 30, 2004.  The results for the quarter ended June 30, 2004 include a charge to income of $21.5 million ($17.3 million, net of taxes), which represents the costs that can be currently estimated relating to anticipated settlement of governmental investigations concerning payments to securities dealers who sell fund shares, a matter that has been previously disclosed in the company's public announcements.  This $21.5 million charge is in addition to the $60.0 million charge to income taken by the company in the quarter ended March 31, 2004 primarily for ongoing governmental investigations, proceedings and actions related to market timing allegations.

In the quarter ended March 31, 2004, net income was $172.8 million, or $0.68 per share diluted, on revenues of $874.6 million.  The results for the quarter ended March 31, 2004 also included an insurance recovery of $30.3 million ($18.3 million, net of taxes) related to the September 11, 2001 terrorist attacks.  For the quarter ended June 30, 2003, net income was $131.4 million, or $0.52 per share diluted on revenues of $683.9 million.  Operating income increased 7% this quarter over the prior quarter and increased 42% over the same quarter in the prior year.

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