Franklin Resources, Inc
Franklin Resources, Inc.
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Franklin Resources, Inc. Announces Second Quarter Results

From: Franklin Resources, Inc.
Contact: Holly Gibson Brady
Telephone:(650) 312-4701

San Mateo, CA, April 28, 2005 - Franklin Resources, Inc. (Franklin Templeton Investments) (NYSE: BEN) today reported net income of $221.3 million, or $0.85 per share diluted on revenues of $1,051.2 million for the quarter ended March 31, 2005.  The results for the quarter ended March 31, 2005, include a charge to income of $42.0 million ($26.5 million, net of taxes), representing the previously announced settlement with the Ontario Securities Commission concerning market timing activity.  In the quarter ended December 31, 2004, net income was $240.0 million, or $0.92 per share diluted, on revenues of $986.0 million.  For the quarter ended March 31, 2004, net income was $172.8 million, or $0.67 per share diluted on revenues of $879.0 million.  Operating income decreased 9% this quarter over the prior quarter and increased 21% over the same quarter in the prior year.

As of March 31, 2005, assets under management by the company's subsidiaries were $412.1 billion, as compared to $402.2 billion last quarter and $351.6 billion at this time last year.  Simple monthly average assets under management during the current quarter were $407.4 billion compared to $381.0 billion in the preceding quarter and $345.7 billion in the same quarter a year ago.  Equity assets now comprise 57% of total assets under management as compared to 57% last quarter and 55% at March 31, 2004.  Fixed-income assets now comprise 24% of total assets under management as compared to 25% last quarter and 28% at the same time last year.  As of March 31, 2005, hybrid assets account for 17% of total assets under management as compared to 17% last quarter and 15% at March 31, 2004.  Sales exceeded redemptions by $11.5 billion for the current quarter compared to $8.8 billion for the prior quarter and $6.5 billion for the comparable quarter a year ago.

On March 15, 2005, our Board of Directors declared a regular quarterly cash dividend of $0.10 per share and a special cash dividend of $2.00 per share, each payable on April 15, 2005 to stockholders of record on March 31, 2005.  The quarterly dividend of $0.10 is equivalent to the dividend paid for the prior quarter and represents an 18% increase over the dividend paid for the same quarter last year.  The special dividend is an extra dividend intended to return additional value to our stockholders.

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