]> Press Releases--Closed-End Funds, TDF Announces Re-Implementation of Repurchase Program

Templeton Dragon Fund, Inc. ("TDF") Announces Re-Implementation of Open-Market Share Repurchase Program

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

Fort Lauderdale, Florida, December 10, 2004--Templeton Dragon Fund, Inc. (NYSE: TDF) (the "Fund"), a closed-end management investment company, announced today that the Board of Directors of the Fund has authorized management to re-implement the Fund's open-market share repurchase program.  Originally implemented in October 1997, the Fund’s Board of Directors had discontinued the open-market share repurchase program in May 2002, in connection with the Fund’s previously conducted tender offers.  Under the program, the Fund may purchase, from time to time, shares of the Fund's common stock in open-market transactions, at the discretion of the Fund's investment manager.

The Board's recent action provides management with flexibility to engage in a share repurchase program in efforts to address the Fund’s discount to net asset value.  The amount and timing of repurchases will be in the discretion of the Fund’s investment manager, taking into account various factors, including market conditions, cash on hand and the availability of other attractive investments.  Any repurchases made under this program would be made on a national securities exchange at the prevailing market price, subject to exchange requirements and volume, timing and other limitations under Federal securities laws.

The Fund is designed for investors seeking long-term capital appreciation.  Under normal market conditions, the Fund invests at least 45% of its total assets in the equity securities of "China companies."  In addition, the Fund may also invest in "Japan companies" and "Asia Pacific companies."  The Fund currently has total assets in excess of $713 million.

The Fund's investment manager, Templeton Asset Management Ltd., is 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 solutions managed by its Franklin, Templeton, Mutual Series and Fiduciary Trust investment teams. The San Mateo, CA-based company has more than 50 years of investment experience and over $388 billion in assets under management as of November 30, 2004. For more information, please call 1-800/DIAL BEN® (1-800/342-5236) or visit franklintempleton.com.