]> Press Releases--Closed-End Funds, FTI Introduces New Closed-End Fund, FTF

Franklin Templeton Investments Introduces Franklin Templeton Limited Duration Income Trust [Symbol:FTF]

From: Franklin Templeton Investments
Contact: Diana Walery
Telephone:(650) 525-7298

San Mateo, CA, July 29, 2003 – Franklin Advisers, Inc. today introduced Franklin Templeton Limited Duration Income Trust [FTF], a newly organized closed-end investment management company.  The Fund’s primary investment objective is to seek high current income.  Its secondary objective is to seek capital appreciation to the extent it is possible and consistent with the Fund’s primary objective. 

Under normal market conditions, the Fund will invest primarily in three distinct fixed income asset classes: mortgage-backed securities, floating rate bank loans and high-yield corporate bonds.  The Fund expects to maintain an estimated average duration of two to five years in an effort to reduce interest rate sensitivity.  In addition, the Fund expects to maintain a minimum weighted average portfolio credit quality of investment grade (BBB-/Baa3), and intends to use leverage to seek a higher return for shareholders. 

“Franklin Templeton Limited Duration Income Trust may be a compelling option for investors in today’s market, offering a diversified fixed income asset mix in a single portfolio,” said Christopher Molumphy, chief investment officer of Franklin Templeton’s fixed income group and portfolio manager of the Fund.  “This Fund draws on the strength and experience of Franklin Templeton’s dedicated mortgage-backed securities, floating rate bank loan and high-yield debt research teams.”

Franklin Templeton Limited Duration Income Trust is the latest offering from one of the largest and most respected fixed income managers in the industry.  Along with Molumphy, the Fund will be managed by Roger Bayston, Richard D’Addario and Eric

Takaha, with combined industry experience of 68 years.  Franklin Templeton has been managing fixed income funds for over 30 years and currently has over 100 fixed income portfolio managers, research analysts and traders, specifically including: 9 in the mortgage-backed securities group, 10 in the floating rate bank loan group and 15 in the high-yield debt group that will support this Fund. 

Franklin Templeton Limited Duration Income Trust’s offering period begins today, July 29, 2003, and ends August 26, 2003.  The initial public offering price is $15, with a required minimum purchase of 100 shares. 

Investors interested in Franklin Templeton Limited Duration Income Trust may obtain a preliminary prospectus containing more complete information, including sales charges and expenses, from securities dealers or by calling Franklin Templeton at 1-800/DIAL BEN®.  Investors should read the prospectus carefully before investing or sending money.

It should be noted that special risks are associated with the use of financial leverage.  Additionally, as with other mutual funds, share prices will fluctuate with market conditions.  Shares of closed-end exchange-traded funds frequently trade at a discount to their net asset value. 

            Franklin Resources, Inc. is a global investment organization operating as Franklin Templeton Investments. Franklin Templeton provides global and domestic investment management services through its Franklin, Templeton, Mutual Series and Fiduciary Trust subsidiaries. The San Mateo, CA-based company has over 50 years of investment experience and approximately $287 billion in assets under management as of June 30, 2003. For more information, please call 1-800/DIAL BEN® or visit franklintempleton.com.