Franklin Resources, Inc. Announces Month-End Assets Under Management

Franklin Resources, Inc. (Franklin Templeton Investments) (NYSE: BEN) today reported preliminary month-end assets under management by the company’s subsidiaries of $669.3 billion for the month ended October 31, 2007, compared to $645.9 billion in the preceding month and $526.8 billion in the same month a year ago. ASSETS UNDER MANAGEMENT       Preliminary     (In billions)   Oct-07   Sep-07   Jun-07   Mar-07   Oct-06 Franklin Templeton Investments:   Equity:   Global/international $302.1 $286.7 $274.4 $248.7 $224.4 Domestic (U.S.) 102.3   100.5   101.6   95.1   87.7 Total Equity 404.4   387.2   376.0   343.8   312.1   Hybrid 120.2 117.2 112.7 105.0 94.0   Fixed-Income: Tax-free 59.3 59.0 58.2 57.3 56.1 Taxable: Domestic (U.S.) 31.8 31.8 32.8 33.0 32.4 Global/international 45.9   43.0   37.8   31.0   25.6 Total Fixed-Income 137.0   133.8   128.8   121.3   114.1   Money Market 7.7   7.7   6.5   5.9   6.6   Total $669.3   $645.9   $624.0   $576.0   $526.8 Franklin Templeton Investments provides global and domestic investment management solutions managed by its Franklin, Templeton, Mutual Series and Fiduciary Trust investment teams. Additional information about the company’s Canadian open-end mutual fund assets and net inflows and outflows will be available on the Investment Funds Institute of Canada web site (ific.ca) on approximately the 15th of each month as part of a Canadian industry-wide release of monthly statistics. The San Mateo, CA-based company has 60 years of investment experience. For more information, please visit franklintempleton.com or call 1-800/DIAL BEN®. Forward-Looking Statements: The financial results in this press release are preliminary. Statements in this press release regarding Franklin Resources, Inc., which are not historical facts, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors, some of which are listed below, that could cause the actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements. These and other risks, uncertainties and other important factors are described in more detail in Franklin's recent filings with the U.S. Securities and Exchange Commission, including, without limitation, in Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operations in Franklin's Annual Report on Form 10-K for the fiscal year ended September 30, 2006, and Franklin’s subsequent Form 10-Q filings. We are subject to extensive and often complex, overlapping and frequently changing regulation domestically and abroad. Regulatory and legislative actions and reforms have made the regulatory environment in which we operate more costly and future actions and reforms could adversely impact our assets under management, increase costs and negatively impact our profitability and future financial results. Our ability to maintain the beneficial tax treatment we anticipate with respect to foreign earnings we have repatriated is based on current interpretations of the American Jobs Creation Act of 2004 (the "Jobs Act”) and timely and permitted use of such amounts in accordance with our domestic reinvestment plan and the Jobs Act. Any significant limitation or failure of our software applications and other technology systems that are critical to our operations could constrain our operations. We face risks, and corresponding potential costs and expenses, associated with conducting operations and growing our business in numerous foreign countries. We depend on key personnel and our financial performance could be negatively affected by the loss of their services. Strong competition from numerous and sometimes larger companies with competing offerings and products could limit or reduce sales of our products, potentially resulting in a decline in our market share, revenues and net income. Changes in the distribution channels on which we depend could reduce our revenues and hinder our growth. The amount and mix of our assets under management are subject to significant fluctuations and could negatively impact our revenues and income. Our increasing focus on international markets as a source of investments and sales of investment products subjects us to increased exchange rate and other risks in connection with earnings and income generated overseas. Poor investment performance of our products could affect our sales or reduce the level of assets under management, potentially negatively impacting our revenues and income. We could suffer losses in earnings or revenue if our reputation is harmed. Our future results are dependent upon maintaining an appropriate level of expenses, which is subject to fluctuation. Our ability to successfully integrate widely varied business lines can be impeded by systems and other technological limitations. Our inability to successfully recover should we experience a disaster or other business continuity problem could cause material financial loss, loss of human capital, regulatory actions, reputational harm or legal liability. Certain of the portfolios we manage, including our emerging market portfolios, are vulnerable to market-specific political, economic or other risks, any of which may negatively impact our revenues and income. Our revenues, earnings and income could be adversely affected if the terms of our management agreements are significantly altered or these agreements are terminated by the funds we advise. Diverse and strong competition limits the interest rates that we can charge on consumer loans. Civil litigation arising out of or relating to previously settled governmental investigations or other matters, governmental or regulatory investigations and/or examinations and the legal risks associated with our business could adversely impact our assets under management, increase costs and negatively impact our profitability and/or our future financial results. Our ability to meet cash needs depends upon certain factors, including our asset value, credit worthiness and the market value of our stock.