]> Press Release--Closed-End Funds, ("TDF") Announces Commencement of Tender Offer
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Templeton Dragon Fund Announces Commencement of Tender Offer

From: Franklin Templeton Investments
Contact: Lisa Gallegos
Telephone:(650) 312-3395

Ft. Lauderdale, Florida, April 24, 2003.  Templeton Dragon Fund, Inc. (NYSE: TDF) (the “Fund”), a closed-end management investment company, today announced that it has commenced a tender offer to purchase up to 6,656,425 shares, or 15% of its outstanding common stock, for cash, at a price per share equal to 92.5% of the net asset value per share as of the date the offer expires.  The offer begins today and will expire at 12:00 midnight, Eastern time on May 22, 2003, unless the offer is extended.  In the event that the shares tendered exceed 6,656,425, the number of shares purchased will be pro-rated in accordance with the number of shares tendered by each shareholder.  On April 23, 2003, the Fund’s net asset value per share was $9.98.  The net asset value per share as of the date the offer expires may be higher or lower than the net asset value per share on April 23, 2003. 

Although the Fund’s Board of Directors has approved this tender offer, neither the Fund, its Board of Directors nor its investment manager is making any recommendation to shareholders as to whether to tender or refrain from tendering their shares.  Shareholders are urged to evaluate carefully all information regarding the tender offer and consult their own investment and tax advisors before making their decision as to whether to tender their shares and, if so, how many shares to tender.

This press release is for informational purposes only and is not an offer to purchase or a solicitation of an offer to sell shares of the Fund.  The tender offer will be made and shareholders will be notified in accordance with the requirements of the Securities and Exchange Act of 1934, as amended, and the Investment Company Act of 1940, as amended. The Offer to Purchase, the Letter of Transmittal and certain other materials are being mailed to shareholders today.  In addition, the Fund is also filing today with the SEC on Schedule TO, the Offer to Purchase, the Letter of Transmittal and other materials.   Holders of the Fund’s shares should read the Offer to Purchase and the related Letter of Transmittal and the other materials filed with the SEC on Schedule TO, as well as any amendments or supplements to the Schedule when they become available, because they contain important information.  Documents filed with the SEC will be available to investors for free at the website of the SEC (www.sec.gov).  Questions and requests for assistance or for copies of the Offer to Purchase, Letter of Transmittal and related documents should be directed to the Information Agent, Mellon Investor Services LLC, 85 Challenger Road, 2nd Floor, Ridgefield Park, NJ 07660, or by calling toll-free 1-888-788-1635.  Requests for current net asset value information may be directed to the Information Agent or Franklin Templeton Fund Information at 1-800 DIAL BEN (1-800-342-5236).

The Fund's investment manager is Templeton Asset Management Ltd., an indirect wholly owned subsidiary of Franklin Resources, Inc. (NYSE: BEN), a global investment organization operating as Franklin Templeton Investments.  Franklin Templeton Investments 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 more than $252 billion in assets under management as of March 31, 2003.  For more information, please call 1-800-DIAL BEN® (1-800-342-5236).