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

From: Franklin Resources, Inc.
Contact: Lisa Gallegos
Telephone:(650) 312-3395

San Mateo, CA, October 26, 2006 - Franklin Resources, Inc. (Franklin Templeton Investments) (NYSE: BEN) today announced net income of $381.7 million, or $1.49 per share diluted, on revenues of $1,297.2 million for the quarter ended September 30, 2006. In the quarter ended June 30, 2006, net income was $371.4 million, or $1.41 per share diluted, on revenues of $1,317.3 million. For the quarter ended September 30, 2005, net income was $334.5 million, or $1.28 per share diluted, on revenues of $1,163.2 million.

Operating income for the quarter ended September 30, 2006 was $427.1 million, as compared to $452.0 million for the prior quarter and $368.5 million for the quarter ended September 30, 2005. The company's non-operating income for the quarter ended September 30, 2006 included $57.8 million of investment and other income, net, as compared to $52.3 million in the prior quarter and $49.6 million for the quarter ended September 30, 2005.

Assets under management by the company's subsidiaries were $511.3 billion at September 30, 2006, as compared to $490.1 billion at June 30, 2006 and $453.1 billion at September 30, 2005. Simple monthly average assets under management during the quarter ended September 30, 2006 were $500.4 billion compared to $494.6 billion in the preceding quarter and $440.5 billion in the same quarter a year ago. Equity assets comprised 59% of total assets under management at September 30, 2006, as compared to 60% for the previous quarter and 58% at September 30, 2005. Fixed-income assets comprised 22% of total assets under management at September 30, 2006 and June 30, 2006, as compared to 23% at September 30, 2005. Hybrid assets accounted for 18% of total assets under management at September 30, 2006, as compared to 17% at June 30, 2006 and September 30, 2005. Sales exceeded redemptions by $2.4 billion for the quarter ended September 30, 2006, as compared to $1.3 billion for the prior quarter and $8.0 billion for the comparable quarter a year ago.

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