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

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

Fort Lauderdale, Florida, January 31, 2005--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 December 31, 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 management 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 $402 billion in assets under management as of December 31, 2004. For more information, please call 1-800/DIAL BEN® (1-800-342-5236) or visit franklintempleton.com.

TEMPLETON DRAGON FUND, INC.
AS OF DECEMBER 31, 2004
TOTAL ASSETS: $706,101,162
NET ASSET VALUE PER SHARE: $18.69

ASSET
ALLOCATION
PERCENT OF TOTAL NET ASSETS TEN LARGEST POSITIONS PERCENT OF TOTAL NET ASSETS
CASH & OTHER 2.5% DAIRY FARM INTERNATIONAL HOLDINGS LTD 13.7%
EQUITY* 97.5%
=========
CHINA MOBILE (HONG KONG) LTD 6.0%
100.0% CHINA PETROLEUM & CHEMICAL CORP 6.0%
HANG LUNG GROUP LTD 5.2%
CHEUNG KONG INFRASTRUCTURE HOLDINGS LTD 4.5%
CHEUNG KONG HLDS LTD 3.6%
HSBC HOLDINGS PLC 3.3%
DELTA ELECTRONICS INC 2.9%
PETROCHINA CO LTD 2.9%
ACER INC 2.9%
========
51.0%


INTERNATIONAL ALLOCATION PERCENT OF TOTAL NET ASSETS INDUSTRY ALLOCATION PERCENT OF TOTAL NET ASSETS
ASIA 96.6% CONSUMER DISCRETIONARY 10.7%
CHINA 33.9% AUTOMOBILES & COMPONENTS 1.7%
HONG KONG 22.0% CONSUMER DURABLES & APPAREL 2.8%
SINGAPORE 14.0% HOTELS RESTAURANTS & LEISURE 2.8%
SOUTH KOREA 0.7% RETAILING 3.3%
TAIWAN 26.0% CONSUMER STAPLES 15.2%
EUROPE 3.4% FOOD BEVERAGE & TOBACCO 1.2%
UNITED KINGDOM 3.4% FOOD & STAPLES RETAILING 14.0%
TOTAL NET ASSETS 100.0% ENERGY 9.1%
FINANCIALS 21.2%
BANKS 7.8%
DIVERSIFIED FINANCIALS 1.3%
REAL ESTATE 12.1%
INDUSTRIALS 11.1%
CAPITAL GOODS 8.0%
TRANSPORTATION 3.1%
INFORMATION TECHNOLOGY 15.4%
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT
5.2%
SOFTWARE & SERVICES 0.3%
TECHNOLOGY HARDWARE & EQUIPMENT
9.9%
MATERIALS 0.3%
TELECOMMUNICATION SERVICES 8.1%
UTILITIES 8.8%
TOTAL NET ASSETS 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 DECEMBER 31, 2004
TOTAL NET ASSETS: $1,250,622,866
NET ASSET VALUE PER SHARE: $9.64

ASSET
ALLOCATION
PERCENT OF TOTAL NET ASSETS PORTFOLIO CHARACTERISTICS
CASH & OTHER 3.8% WEIGHTED AVG. CREDIT QUALITY A+
FIXED INCOME 96.2% WEIGHTED AVG. MATURITY 4 yrs.
EQUITY* 0.0%
========
WEIGHTED AVG. DURATION 3.57 yrs.
100.0% WEIGHTED AVG. COUPON 6.554%


NET CURRENCY DISTRIBUTION PERCENT OF TOTAL NET ASSETS COUNTRY DISTRIBUTION PERCENT OF TOTAL NET ASSETS
ASIA 24.4% ASIA 26.2%
INDO RUPIAH 5.5% INDONESIA 5.5%
SOUTH KOREA WON 12.6% PHILIPPINES 1.7%
SINGAPORE DOLLAR 0.6% SINGAPORE 0.6%
THAILAND BAHT 5.7% SOUTH KOREA 12.6%
AUSTRALIA/NEW ZEALAND 13.7% THAILAND 5.7%
AUSTRALIAN DLR 6.0% AUSTRALIA/NEW ZEALAND 13.7%
N ZEAL DOLLAR 7.7% AUSTRALIA 6.0%
EUROPE 45.5% NEW ZEALAND 7.7%
BRITISH POUND 0.1% EUROPE 47.7%
DANISH KRONE 1.7% AUSTRIA 2.4%
EURO MON UNIT 19.1% BELGIUM 2.9%
HUNGARY FORINT 1.6% DENMARK 1.7%
NORWEGIAN KRONE 4.0% FINLAND 2.7%
POLAND ZLOTY 6.1% FRANCE 1.8%
SLOVAK KORUNA 3.3% GERMANY 1.0%
SWEDISH KRONA 9.6% GREECE 0.5%
NORTH AMERICA 16.3% HUNGARY 1.6%
CANADIAN DOLLAR 4.5% IRISH REPUBLIC 1.3%
US DOLLAR 11.9% NETHERLANDS 1.6%
======== NORWAY 4.0%
TOTAL 100.0% POLAND 6.1%
RUSSIA 2.0%
SLOVAK REPUBLIC 3.3%
SPAIN 2.1%
SWEDEN 9.6%
UKRAINE 2.8%
UNITED KINGDOM 0.1%
LATIN AMERICA 5.9%
BRAZIL 0.6%
COLOMBIA 0.5%
MEXICO 1.1%
PERU 0.2%
VENEZUELA 3.4%
MID-EAST/AFRICA 0.2%
SOUTH AFRICA 0.2%
NORTH AMERICA 6.4%
CANADA 4.5%
UNITED STATES 1.9%
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 DECEMBER 31, 2004
TOTAL ASSETS: $192,933,334
NET ASSET VALUE PER SHARE: $35.91

ASSET
ALLOCATION
PERCENT OF TOTAL NET ASSETS TEN LARGEST POSITIONS PERCENT OF TOTAL NET ASSETS
SHORT TERM & OTHER 20.8% SBERBANK RF 17.4%
FIXED INCOME 0.0% LUKOIL HOLDINGS 7.3%
EQUITY* 79.2%
=========
CHEREPOVETS MK SEVERSTAL 6.8%
100% MOL MAGYAR OLAJ-ES GAZIPARI RT 6.4%
VOLGATELECOM 6.3%
TELEKOMUNIKACA POLSKA SA 5.6%
UNIFIED ENERGY SYSTEMS 5.1%
EGIS RT 4.5%
SIBIRTELECOM 3.8%
PLIVA D D 3.6%
========
66.8%


INTERNATIONAL ALLOCATION PERCENT OF TOTAL NET ASSETS INDUSTRY ALLOCATION PERCENT OF TOTAL NET ASSETS
EUROPE 100.0% CONSUMER DISCRETIONARY 4.2%
CROATIA 4.1% AUTOMOBILES & COMPONENTS 4.2%
HUNGARY 14.3% CONSUMER STAPLES 0.1%
POLAND 6.4% HOUSEHOLD & PERSONAL PRODUCTS
0.1%
RUSSIA 75.2% ENERGY 20.8%
TOTAL EQUITY 100.0% FINANCIALS 19.8%
BANKS 19.8%
HEALTH CARE 9.2%
PHARMACEUTICALS & BIOTECHNOLOGY 9.2%
INDUSTRIALS 0.7%
CAPITAL GOODS 0.7%
INFORMATION TECHNOLOGY 1.5%
SOFTWARE & SERVICES 1.5%
MATERIALS 10.2%
TELECOMMUNICATION SERVICES 26.1%
UTILITIES 7.5%
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.

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