]> Press Releases--Closed-End Funds, Templeton Releases Portfolio Allocation Update
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Templeton Releases Closed-End Fund Portfolio Allocation Updates

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

Fort Lauderdale, Florida, November 2, 2004.  The Templeton closed-end Funds referenced below, which trade on the New York Stock Exchange, today released portfolio allocation updates containing the following information as of September 30, 2004:

  • Asset Allocation
  • Ten Largest Positions/Portfolio Characteristics
  • International Allocation/Net Currency Distribution
  • Industry Allocation/Country Distribution

To obtain a copy of the updates, please contact Fund Information at 1-800-342-5236.

Templeton closed-end Funds:

  • Templeton Dragon Fund, Inc. (NYSE: TDF)
  • Templeton Global Income Fund (NYSE: GIM)            
  • Templeton Russia and East European Fund, Inc. (NYSE: TRF)

The Funds' investment advisers are subsidiaries 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 $361 billion in assets under management as of September 30, 2004. For more information, please call 1-800/DIAL BEN® (1-800-342-5236) or visit franklintempleton.com.

TEMPLETON DRAGON FUND, INC.
AS OF SEPTEMBER 30, 2004
TOTAL ASSETS: $674,318,397
NET ASSET VALUE PER SHARE: $17.85

ASSET
ALLOCATION
PERCENT OF TOTAL NET ASSETS TEN LARGEST POSITIONS PERCENT OF TOTAL NET ASSETS
CASH & OTHER 4.0% DAIRY FARM INTERNATIONAL HOLDINGS LTD 14.9%
EQUITY* 96.0%
=========
CHINA PETROLEUM & CHEMICAL CORP 6.6%
100.0% CHINA MOBILE (HONG KONG) LTD 5.7%
HANG LUNG GROUP LTD 4.5%
CHEUNG KONG INFRASTRUCTURE HOLDINGS LTD 4.2%
CHEUNG KONG HLDS LTD 3.3%
HSBC HOLDINGS PLC 3.2%
DATANG INTERNATIONAL POWER GENERATION CO LTD 3.2%
CITIC PACIFIC LTD 2.7%
MEGA FINANCIAL HOLDINGS CO LTD 2.5%

========

50.8%


INTERNATIONAL ALLOCATION PERCENT OF TOTAL NET ASSETS INDUSTRY ALLOCATION PERCENT OF TOTAL NET ASSETS
ASIA 96.6% CONSUMER DISCRETIONARY 11.4%
CHINA 35.4% AUTOMOBILES & COMPONENTS 1.8%
HONG KONG 35.2% CONSUMER DURABLES & APPAREL 4.2%
SOUTH KOREA 0.7% HOTELS RESTAURANTS & LEISURE 2.4%
TAIWAN 25.4% RETAILING 3.0%
EUROPE 3.4% CONSUMER STAPLES 16.8%
UNITED KINGDOM 3.4% FOOD BEVERAGE & TOBACCO 1.3%
TOTAL NET ASSETS 100.0% FOOD & STAPLES RETAILING 15.5%
ENERGY 9.4%
FINANCIALS 20.9%
BANKS 8.8%
DIVERSIFIED FINANCIALS 1.2%
REAL ESTATE 10.9%
INDUSTRIALS 11.0%
CAPITAL GOODS 7.8%
TRANSPORTATION 3.2%
INFORMATION TECHNOLOGY 13.7%
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 4.2%
SOFTWARE & SERVICES 0.4%
TECHNOLOGY HARDWARE & EQUIPMENT 9.1%
MATERIALS 0.4%
TELECOMMUNICATION SERVICES 7.7%
UTILITIES 8.8%
TOTAL EQUITY* 100.0%

You may request a copy of the Fund's current Report to Shareholders by contacting Fund Information at 1-800-DIAL BEN® (1-800-342-5236). Sincemarkets can go down as well as up, investment return and principal value will fluctuate with market conditions, currency volatility, and the economic,social and political climates of countries where the Fund invests. Emerging markets involve heightened risks related to the same factors, in addition tothose associated with their relatively small size and lesser liquidity. You may have a gain or loss when you sell your shares. The industry allocation uses MSCI's industry definitions for the convenience of comparison. The information provided is as of the date shown.  The Fund's portfolio is activelymanaged and investment allocations can be expected to change.

* EQUITY INCLUDES CONVERTIBLE AND PREFERRED SECURITIES.

TEMPLETON GLOBAL INCOME FUND
AS OF SEPTEMBER 30, 2004
TOTAL NET ASSETS: $1,163,536,765
NET ASSET VALUE PER SHARE: $8.97

ASSET
ALLOCATION
PERCENT OF TOTAL NET ASSETS PORTFOLIO CHARACTERISTICS
CASH & OTHER 4.2% WEIGHTED AVG. CREDIT QUALITY A+
FIXED INCOME 95.8% WEIGHTED AVG. MATURITY 4 yrs.
EQUITY* 0.0%
========
WEIGHTED AVG. DURATION 3.68 yrs.
100.0% WEIGHTED AVG. COUPON 6.810%


NET CURRENCY DISTRIBUTION PERCENT OF TOTAL NET ASSETS COUNTRY DISTRIBUTION PERCENT OF TOTAL NET ASSETS
ASIA 23.6% ASIA 25.4%
INDO RUPIAH 5.7% INDONESIA 5.7%
SOUTH KOREA WON 12.1% PHILIPPINES 1.7%
THAILAND BAHT 5.9% SOUTH KOREA 12.1%
AUSTRALIA/NEW ZELAND 13.7% THAILAND 5.9%
AUSTRALIAN DLR 6.0% AUSTRALIA/NEW ZEALAND 13.7%
N ZEAL DOLLAR 7.8% AUSTRALIA 6.0%
EUROPE 47.2% NEW ZEALAND 7.8%
BRITISH POUND 0.3% EUROPE 49.5%
DANISH KRONE 1.7% AUSTRIA 2.4%
EURO MON UNIT 25.0% BELGIUM 2.9%
HUNGARY FORINT 1.5% DENMARK 1.7%
NORWEGIAN KRONE 3.9% FINLAND 2.7%
POLAND ZLOTY 5.6% FRANCE 2.3%
SWEDISH KRONA 9.3% GERMANY 3.5%
NORTH AMERICA 15.4% GREECE 0.5%
CANADIAN DOLLAR 2.0% HUNGARY 1.5%
US DOLLAR 13.4% IRISH REPUBLIC 1.3%
======== ITALY 2.3%
TOTAL 100.0% NETHERLANDS 2.3%
NORWAY 3.9%
POLAND 5.6%
RUSSIA 2.0%
SPAIN 2.3%
SWEDEN 9.3%
UKRAINE 2.8%
UNITED KINGDOM 0.3%
LATIN AMERICA 5.9%
BRAZIL 0.7%
COLOMBIA 0.5%
MEXICO 1.1%
PERU 0.2%
VENEZUELA 3.5%
MID-EAST/AFRICA 0.2%
SOUTH AFRICA 0.2%
NORTH AMERICA 5.2%
CANADA 2.0%
UNITED STATES 3.3%
TOTAL 100.0%

You may request a copy of the Fund's current Report to Shareholders by contacting Fund Information at 1-800/DIAL BEN® (1-800-342-5236).Since markets can go down as well as up, investment return and principal value will fluctuate with market conditions, currency volatility, and theeconomic, social and political climates of countries where the Fund invests. Emerging markets involve heightened risks related to the same factors, in addition to those associated with their relatively small size and lesser liquidity. You may have a gain or loss when you sell your shares. Theinformation provided is as of the date shown.  The Fund's portfolio is actively managed and investment allocations can be expected to change.

* EQUITY INCLUDES CONVERTIBLE AND PREFERRED SECURITIES.

TEMPLETON RUSSIA AND EAST EUROPEAN FUND, INC.
AS OF SEPTEMBER 30, 2004
TOTAL ASSETS: $203,823,299
NET ASSET VALUE PER SHARE: $37.93

ASSET
ALLOCATION
PERCENT OF TOTAL NET ASSETS TEN LARGEST POSITIONS PERCENT OF TOTAL NET ASSETS
SHORT TERM & OTHER 13.6% SBERBANK RF 14.7%
FIXED INCOME 0.0% CHEREPOVETS MK SEVERSTAL 8.2%
EQUITY* 86.4%
=========
VIMPEL COMMUNICATIONS 7.7%
100% LUKOIL HOLDINGS 7.1%
JSC MINING & SMELTING CO NORILSK NICKEL 7.0%
VOLGATELECOM 6.4%
UNIFIED ENERGY SYSTEMS 5.0%
MOL MAGYAR OLAJ-ES GAZIPARI RT 4.3%
PLIVA D D 4.1%
EGIS RT 3.5%

========

67.9%


INTERNATIONAL ALLOCATION PERCENT OF TOTAL NET ASSETS INDUSTRY ALLOCATION PERCENT OF TOTAL NET ASSETS
EUROPE 100.0% CONSUMER DISCRETIONARY 3.7%
CROATIA 4.4% AUTOMOBILES & COMPONENTS 3.7%
HUNGARY 8.4% CONSUMER STAPLES 0.1%
POLAND 3.8% HOUSEHOLD & PERSONAL PRODUCTS 0.1%
RUSSIA 83.4% ENERGY 16.8%
TOTAL EQUITY 100.0% FINANCIALS 15.8%
BANKS 15.8%
HEALTH CARE 8.2%
PHARMACEUTICALS & BIOTECHNOLOGY 8.2%
INDUSTRIALS 1.1%
CAPITAL GOODS 0.6%
TRANSPORTATION 0.5%
INFORMATION TECHNOLOGY 1.0%
SOFTWARE & SERVICES 1.0%
MATERIALS 16.8%
TELECOMMUNICATION SERVICES 29.5%
UTILITIES 7.0%
TOTAL EQUITY* 100.0%

You may request a copy of the Fund's current Report to Shareholders by contacting Fund Information at 1-800-DIAL BEN® (1-800-342-5236). Since markets can go down as well as up, investment return and principal value will fluctuate with market conditions, currency volatility, and the economic, social and political climates of countries where the Fund invests. Emerging markets involve heightened risks related to the same factors, in addition to those associated with their relatively small size and lesser liquidity. You may have a gain or loss when you sell your shares. The industry allocation uses MSCI's industry definitions for the convenience of comparison. The information provided is as of the date shown.  The Fund's portfolio is actively managed and investment allocations can be expected to change.

* EQUITY INCLUDES CONVERTIBLE AND PREFERRED SECURITIES.