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

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

San Mateo, CA, January 25, 2007  - Franklin Resources, Inc. (Franklin Templeton Investments) (NYSE: BEN) today announced net income of $426.8 million, or $1.67 per share diluted, on revenues of $1,427.8 million for the quarter ended December 31, 2006.   In the quarter ended September 30, 2006, net income was $381.7 million, or $1.49 per share diluted, on revenues of $1,297.2 million.  For the quarter ended December 31, 2005, net income was $318.0 million, or $1.21 per share diluted, on revenues of $1,181.5 million. 

Operating income for the quarter ended December 31, 2006 was $508.1 million, as compared to $427.1 million for the prior quarter and $404.6 million for the quarter ended December 31, 2005.   The company’s non-operating income for the quarter ended December 31, 2006 included $71.1 million of investment and other income, net, as compared to $57.8 million in the prior quarter and $32.4 million for the quarter ended December 31, 2005.

Assets under management by the company’s subsidiaries were $552.9 billion at December 31, 2006, as compared to $511.3 billion at September 30, 2006 and $464.8 billion at December 31, 2005.   Simple monthly average assets under management during the quarter ended December 31, 2006 were $533.1 billion compared to $500.4 billion in the preceding quarter and $453.3 billion in the same quarter a year ago.  Equity assets comprised 60% of total assets under management at December 31, 2006, as compared to 59% at September 30, 2006 and December 31, 2005.  Fixed-income assets comprised 21% of total assets under management at December 31, 2006, as compared to 22% at September 30, 2006 and 23% at December 31, 2005.   Hybrid assets accounted for 18% of total assets under management at December 31, 2006 and September 30, 2006, as compared to 17% at December 31, 2005.  Sales exceeded redemptions by $10.0 billion for the quarter ended December 31, 2006, as compared to $2.4 billion for the prior quarter and $5.8 billion for the comparable quarter a year ago.

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