RNS Number:1274Z
Franklin Resources Inc
25 July 2002


          Franklin Resources, Inc. Announces Third Quarter Results

San Mateo, CA, July 25, 2002 -- Franklin Resources, Inc. (Franklin Templeton
Investments) (NYSE: BEN) today reported net income of $125.7 million, or $0.48
per share diluted, on revenues of $666.1 million for the quarter ended June 30,
2002, compared with net income of $120.0 million, or $0.46 per share diluted, on
revenues of $626.0 million in the preceding quarter and net income of $119.7
million, or $0.46 per share diluted, on revenues of $609.5 million in the
comparable quarter a year ago. Operating income increased 4% this quarter over
the prior quarter, 23% over the same quarter in the prior year, and by 6% for
the nine months ended June 30, 2002 over the same period in the prior year. 

As of June 30, 2002, assets under management by the company's subsidiaries were
$270.4 billion, as compared to $274.5 billion last quarter and $267.9 billion at
this time last year. Simple monthly average assets under management during the
current quarter were $274.8 billion compared to $267.9 billion in the preceding
quarter and $255.9 billion in the same quarter a year ago. Equity assets now
comprise 53% of total assets under management as compared to 54% last quarter
and 55% at June 30, 2001. Fixed-income assets now comprise 31% of total assets
under management, as compared to 30% last quarter and 29% at the same time last
year. As of June 30, 2002 and March 31, 2002, hybrid assets account for 15% of
total assets under management, as compared to 14% at June 30, 2001. Sales and
reinvested dividends exceeded redemptions ("net inflows") for the seventh
consecutive quarter. Complex-wide net inflows were $5.6 billion for the current
quarter compared to $5.0 billion for the prior quarter and $2.7 billion for the
comparable quarter a year ago. 


Fiscal Third Quarter 2002 Highlights 

Performance and Products(1,2)
(See important footnotes in "Supplemental Information" section at the end of the 
release.) 

•  Over 79% of Franklin Templeton's long-term U.S. retail mutual fund assets 
   were in funds ranked in the top two quartiles of their respective Lipper peer 
   groups for the one-, three-, five- and 10-year periods ended June 30, 2002.
   (3,4)
 
•  In Lipper's mutual fund evaluation tool, Lipper Leaders, Franklin Templeton 
   Investments garnered more awards than any other mutual fund company under the 
   consistent return and preservation categories combined as of June 30, 2002.
   (5) 

•  Over 90% of Templeton equity mutual fund assets were in funds ranked in the 
   top two quartiles of their respective Lipper peer groups for the one-, 
   three-, five- and 10-year periods ended June 30, 2002. Templeton Foreign Fund 
   and Templeton Growth Fund ranked in the top quintile of their respective 
   Lipper peer groups for the one-, three-, five- and 10-year periods ended June 
   30, 2002, and outpaced their respective benchmark indices, the MSCI EAFE 
   Index and MSCI World Index, for the same time periods.(3,6) 

•  Templeton Growth Fund was rated 5 stars overall by Morningstar as of June 30, 
   2002. Templeton Foreign Fund and Templeton World Fund were rated 4 stars 
   overall by Morningstar as of June 30, 2002.(7,8)

•  All six Mutual Series funds were ranked in the top two quartiles of their 
   respective Lipper peer groups for the one-, three-, five- and 10-year periods 
   ended June 30, 2002.(3,9) 

•  Announced that Franklin California Growth Fund will be renamed Franklin Flex 
   Cap Growth Fund effective September 1, 2002. The fund was rated 4 stars 
   overall by Morningstar as of June 30, 2002, and ranked in the top quintile of 
   its Lipper peer group for the one-, three-, five- and 10-year periods ended 
   June 30, 2002.3,7,10,11 

•  Franklin Templeton Investments Corp. (Canada) successfully launched the 
   Series T group of funds designed for Canadians looking for a tax efficient 
   withdrawal plan from their investments. 


Global Business Developments 

•  Franklin Templeton Investments was recognized as Worth magazine's Editor's 
   Choice for "Favorite Mutual Fund Family." 

•  CEO Charles B. Johnson was recognized by Forbes.com as one of 12 chief 
   executives who have successfully led their respective companies for over a 25 
   year period. 

•  New assignments for FTI Institutional include a Franklin U.S. multi-cap 
   equity mandate for CalPERS, the first combined Templeton-Fiduciary global 
   core strategy mandate for Conference of Seventh Day Adventists and a Franklin 
   small-cap equity strategy for the New Mexico Educational Retirement Board. 

•  Franklin Templeton Private Client Group's new global equity all cap multiple 
   discipline strategy, which pairs the investment expertise of Templeton and 
   Fiduciary, was added to Salomon Smith Barney's Consulting Group's Diversified 
   Strategic Portfolios product. 

•  Defined Contribution Services received the 2002 achievement award from the 
   Association of Graphic Communicators for the "The Path to Your Retirement 
   Future" enrollment book. 


Consolidated Income Statements
 
(Dollar amounts in thousands 
except assets under management                           Three Months Ended              Nine Months Ended
and per share data) 
                                                               June 30                        June 30
                                                      2002       2001          %          2002         2001         % 
                                                                          Change                               Change 
Operating revenues
Investment management fees                        $384,840    $362,543        6%    $1,107,416    $1,048,464       6% 
Underwriting and distribution fees                 213,300     180,757       18%       602,844       523,284      15% 
Shareholder servicing fees                          48,832      53,723      (9)%       144,197       153,907     (6)% 
Other, net                                          19,078      12,450       53%        55,768        25,305     120% 
Total operating revenues                           666,050     609,473        9%     1,910,225     1,750,960       9% 
  
Operating expenses 
Underwriting and distribution                      191,586     162,977       18%       541,180       470,795      15% 
Compensation and benefits                          167,570     167,643         -       487,477       449,576       8% 
Information systems, technology and occupancy       75,573      70,576        7%       223,364       187,106      19% 
Advertising and promotion                           29,268      27,314        7%        81,174        73,873      10% 
Amortization of deferred sales commissions          17,677      16,361        8%        51,467        52,176     (1)% 
Amortization of intangible assets                    4,238      16,672     (75)%        12,871        36,688    (65)% 
Other, net                                          26,286      23,234       13%        67,956        62,599       9% 
Total operating expenses                           512,198     484,777        6%     1,465,489     1,332,813      10% 
  
Operating income                                   153,852     124,696       23%       444,736       418,147       6% 
  
Other income (expense) 
Investment and other income                         18,017      34,698     (48)%        51,128       116,708    (56)% 
Interest expense                                    (3,158)     (1,889)      67%        (9,134)       (7,418)     23% 
Other income (expense), net                         14,859      32,809     (55)%        41,994       109,290    (62)% 
  
Income before taxes on income                      168,711     157,505        7%       486,730       527,437     (8)% 
Taxes on income                                     43,021      37,802       14%       122,525       126,585     (3)% 
  
Net income                                        $125,690    $119,703        5%      $364,205      $400,852     (9)% 
  
Earnings per share 
   Basic                                             $0.48       $0.46        4%         $1.39         $1.61    (14)% 
   Diluted                                           $0.48       $0.46        4%         $1.39         $1.60    (13)% 
  
Dividends per share                                  $0.07      $0.065        8%         $0.21        $0.195       8% 
  
Average shares outstanding (in thousands) 
   Basic                                           261,952     260,815         -       261,507       249,591       5% 
   Diluted                                         263,087     262,174         -       262,401       250,622       5% 
  
EBITDA Margin((1))                                     30%         32%                     30%           35%  
Operating Margin((2))                                  23%         20%                     23%           24%  
  
Assets under management (in millions) 
Beginning of Period                               $274,474    $215,716       27%       246,385      $229,923       7% 
   Sales                                            18,606      15,416       21%        56,288        43,725      29% 
   Reinvested Dividends                              1,113       2,179     (49)%         4,216         8,399    (50)% 
   Redemptions                                     (14,128)    (14,873)     (5)%       (43,930)      (45,025)    (2)% 
   Acquisitions                                          -      45,838    (100)%             -        49,546   (100)% 
   (Depreciation)/appreciation                      (9,632)      3,652       N/A         7,474       (18,640)     N/A 
End of period                                     $270,433    $267,928        1%      $270,433      $267,928       1% 
Simple monthly average for period                 $274,816    $255,929        7%      $265,578      $238,692      11% 


((1))EBITDA Margin: Earnings before interest, taxes on income, depreciation and 
     the amortization of intangibles divided by total revenues.

((2))Operating Margin: Operating income divided by total operating revenues. 



Consolidated Income Statements
 (Dollar amounts in thousands 
except per share data, 
Employees and billable                                                    Three Months Ended    
shareholder accounts) 
                                                30-Jun-02   31-Mar-02         %     31-Dec-01     30-Sep-01   30-Jun-01 
                                                                         Change 
Operating revenues  
Investment management fees                       $384,840    $365,778        5%      $356,798      $358,738    $362,543 
Underwriting and distribution fees                213,300     197,537        8%       192,007       186,192     180,757 
Shareholder servicing fees                         48,832      48,024        2%        47,341        45,618      53,723 
Other, net                                         19,078      14,629       30%        22,061        13,335      12,450 
Total operating revenues                          666,050     625,968        6%       618,207       603,883     609,473 
  
Operating expenses 
Underwriting and distribution                     191,586     177,327        8%       172,267       166,073     162,977 
Compensation and benefits                         167,570     159,764        5%       160,143       165,705     167,643 
Information systems, technology and occupancy      75,573      73,197        3%        74,594        76,191      70,576 
Advertising and promotion                          29,268      25,481       15%        26,425        32,388      27,314 
Amortization of deferred sales commissions         17,677      17,047        4%        16,743        16,801      16,361 
Amortization of intangible assets                   4,238       4,258         -         4,375        19,902      16,672 
Other, net                                         26,286      20,875       26%        20,795        25,326      23,234 
September 11, 2001 net expense                          -           -         -             -         7,649           - 
Total operating expenses                          512,198     477,949        7%       475,342       510,035     484,777 
  
Operating income                                  153,852     148,019        4%       142,865        93,848     124,696 
  
Other income (expense)
 
Investment and other income                        18,017      14,782       22%        18,329        19,643      34,698 
Interest expense                                   (3,158)     (2,808)      12%        (3,168)       (3,138)     (1,889)
Other income (expense), net                        14,859      11,974       24%        15,161        16,505      32,809 
  
Income before taxes on income                     168,711     159,993        5%       158,026       110,353     157,505 
Taxes on income                                    43,021      39,997        8%        39,507        26,484      37,802 
  
Net income                                       $125,690    $119,996        5%      $118,519       $83,869    $119,703 
  
Earnings per share 
   Basic                                            $0.48       $0.46        4%         $0.45         $0.32       $0.46 
   Diluted                                          $0.48       $0.46        4%         $0.45         $0.32       $0.46 
  
Dividends per share                                $0.070      $0.070         -        $0.070        $0.065      $0.065 
Average shares outstanding (in thousands) 
   Basic                                          261,952     261,596         -       260,981       261,639     260,815 
   Diluted                                        263,087     262,111         -       261,636       263,005     262,174 
  
EBITDA Margin((1))                                    30%         30%                     30%           26%         32% 
Operating Margin((2))                                 23%         24%                     23%           16%         20% 
  
Employees                                           6,457       6,444         -         6,603         6,868       7,101 
Billable Shareholder Accounts (in millions)           9.7         9.5        2%           8.9           8.4        10.1 



((1))EBITDA Margin: Earnings before interest taxes on income, depreciation and 
     the amortization of intangibles divided by total revenues. 

((2))Operating Margin: Operating income divided by total operating revenues. 



Preliminary Summary Balance Sheet
(Dollar amounts in thousands)
                                                 Preliminary 
                                                    June 30,      September 30, 
                                                        2002               2001 
Assets 
Current assets                                    $2,533,545         $1,930,276 
Banking/Finance assets                             1,078,042          1,229,244 
Other assets                                       2,837,177          3,106,130 
Total assets                                      $6,448,764         $6,265,650 
  
Liabilities and stockholders' equity 
Current liabilities                                 $480,212           $457,433 
Banking/Finance liabilities                          880,318          1,070,661 
Other liabilities                                    771,953            759,660 
Total liabilities                                  2,132,483          2,287,754 
Total stockholders' equity                         4,316,281          3,977,896 
Total liabilities and stockholders' equity        $6,448,764         $6,265,650 
  
Ending shares of common stock outstanding            262,001            260,798 



ASSETS UNDER MANAGEMENT BY INVESTMENT OBJECTIVE
(in billions)                                           30-Jun-02   31-Mar-02   31-Dec-01   30-Sep-01   30-Jun-01 
  Equity 
                Global/international                        $93.6       $93.9       $89.4       $80.2       $93.4 
                Domestic                                     48.5        53.2        51.7        44.5        53.3 
                Total Equity                                142.1       147.1       141.1       124.7       146.7 

  Hybrid                                                     39.6        40.8        38.6        36.1        38.3 
  
  Fixed income 
                Tax-free                                     50.2        48.7        48.3        48.4        46.9 
                Taxable: 
                  Domestic                                   24.7        24.6        25.1        24.4        23.4 
                  Global/international                        8.4         7.7         7.4         7.2         7.2 
                Total Fixed Income                           83.3        81.0        80.8        80.0        77.5 
  
  Money                                                       5.4         5.6         5.8         5.6         5.4 
  
Total Ending Assets                                        $270.4      $274.5      $266.3      $246.4      $267.9 
  
Simple Monthly Average Assets                              $274.8      $267.9      $256.4      $261.3      $255.9 


ASSETS UNDER MANAGEMENT & FLOWS
(in billions) 
                                                                              Three Months Ended 
                                                        30-Jun-02   31-Mar-02    % Change   30-Jun-01    % Change 

Beginning Assets Under Management                          $274.5      $266.3          3%      $215.7         27% 
   U.S. retail Assets   
        Beginning Assets                                   $172.8      $167.9          3%      $161.6          7% 
        Sales                                                11.4        11.3          1%        10.9          5% 
        Reinvested dividends                                  1.1         0.5        120%         2.0       (45)% 
        Redemptions                                          (8.8)       (8.7)         1%       (10.5)      (16)% 
        Acquisitions                                            -           -           -           -           - 
        (Depreciation)/appreciation                          (6.6)        1.8         N/A         6.8         N/A 
        Ending Assets                                       169.9       172.8        (2)%       170.8        (1)% 
  
   Other Assets, including International and Institutional 
        Beginning Assets                                   $101.7       $98.4          3%        54.1         88% 
        Sales                                                 7.2         7.5        (4)%         4.5         60% 
        Reinvested Dividends                                    -           -           -         0.2      (100)% 
        Redemptions                                          (5.3)       (5.6)       (5)%        (4.4)        20% 
        Acquisitions                                            -           -           -        45.8           - 
        (Depreciation)/appreciation                          (3.1)        1.4         N/A        (3.1)          - 
        Ending Assets                                       100.5       101.7        (1)%        97.1          4% 
Ending Assets Under Management                             $270.4      $274.5        (1)%      $267.9          1% 
  
Total Assets Under Management 
        Beginning Assets                                   $274.5      $266.3          3%      $215.7         27% 
        Sales                                                18.6        18.8        (1)%        15.4         21% 
        Reinvested Dividends                                  1.1         0.5        120%         2.2       (50)% 
        Redemptions                                         (14.1)      (14.3)       (1)%       (14.9)       (5)% 
        Acquisitions                                            -           -           -        45.8      (100)% 
        Appreciation/(Depreciation)                          (9.7)        3.2         N/A         3.7         N/A 
        Ending Assets                                      $270.4      $274.5        (1)%      $267.9          1% 


Note: Institutional assets totaling approximately $17.2 billion are invested in
U.S. Retail fund and annuity products and are disclosed in U.S. Retail assets in
the above table. Total institutional and high net-worth assets at June 30, 2002
were approximately $92.3 billion, of which high net-worth assets comprised $10.8
billion. 



ASSETS UNDER MANAGEMENT & FLOWS BY INVESTMENT OBJECTIVE
(in billions) 
                                                     Three Months Ended 
                                            30-Jun-02    31-Mar-02    30-Jun-01 
Global/international equity 
       Beginning assets                         $93.9        $89.4        $87.6 
       Sales                                      7.0          6.9          5.3 
       Reinvested dividends                       0.1            -          0.7 
       Redemptions                               (4.7)        (5.1)        (5.8) 
       Acquisitions                                 -            -          3.2 
       (Depreciation)/appreciation               (2.7)         2.7          2.4 
       Ending assets                             93.6         93.9         93.4 
  
Domestic equity 
       Beginning assets                          53.2         51.7         45.5 
       Sales                                      3.6          3.8          3.1 
       Reinvested dividends                       0.3            -          0.7 
       Redemptions                               (2.6)        (2.2)        (2.2) 
       Acquisitions                                 -            -          3.7 
       (Depreciation)/appreciation               (6.0)        (0.1)         2.5 
       Ending assets                             48.5         53.2         53.3 
  
Hybrid 
       Beginning assets                          40.8         38.6          9.8 
       Sales                                      1.2          1.6          0.6 
       Reinvested dividends                       0.2          0.1          0.2 
       Redemptions                               (0.6)        (0.4)        (0.5) 
       Acquisitions                                 -            -         29.1 
       (Depreciation)/appreciation               (2.0)         0.9         (0.9) 
       Ending assets                             39.6         40.8         38.3 
  
Tax-free income 
       Beginning assets                          48.7         48.3         45.8 
       Sales                                      1.8          1.7          1.6 
       Reinvested dividends                       0.3          0.3          0.3 
       Redemptions                               (1.4)        (1.2)        (1.2) 
       Acquisitions                                 -            -          0.1 
       Appreciation/(depreciation)                0.8         (0.4)         0.3 
       Ending assets                             50.2         48.7         46.9 
  
Taxable fixed-income 
       Beginning assets                          32.3         32.5         21.1 
       Sales                                      2.7          2.4          1.9 
       Reinvested dividends                       0.2          0.1          0.2 
       Redemptions                               (2.3)        (2.7)        (1.8) 
       Acquisitions                                 -            -          9.7 
       Appreciation/(depreciation)                0.2            -         (0.5) 
       Ending assets                             33.1         32.3         30.6 
  
Money 
       Beginning assets                           5.6          5.8          5.9 
       Sales                                      2.3          2.4          2.9 
       Reinvested dividends                         -            -          0.1 
       Redemptions                               (2.5)        (2.7)        (3.4) 
       Acquisitions                                 -            -            - 
       Appreciation/(depreciation)                  -          0.1         (0.1) 
       Ending assets                              5.4          5.6          5.4 
Ending Assets Under Management                 $270.4       $274.5       $267.9 



Conference Call Information 

As previously announced, members of the investment community and general public
are invited to listen to the earnings conference call today, Thursday, July 25,
2002 at 1:30 p.m. Pacific Time. Access to the teleconference will be available
via franklintempleton.com 10 minutes before the start of the call or by dialing
(877) 260-8900 in the U.S. or (612) 288-0337 internationally. 

A replay of the call will be archived on franklintempleton.com through August 2,
2002. The replay can also be accessed by calling (800) 475-6701 in the U.S. or
(320) 365-3844 internationally and using access code #642738, after 5:00 p.m.
Pacific Time on July 25 through 11:59 p.m. Pacific Time on August 2. 

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. For more information, please visit franklintempleton.com
or call 1-800/DIAL BEN(R). 


Supplemental Information 

(1) Nothing in this section shall be considered a solicitation to buy or an 
offer  to sell a security to any person in any jurisdiction where such offer,   
solicitation, purchase or sale would be unlawful under the securities laws of   
such jurisdiction. For more information on any U.S. Franklin Templeton fund,   
investors should request a prospectus containing more complete information,   
including sales charges, expenses and risks, from securities dealers or by   
calling Franklin Templeton Distributors, Inc. at 1-800/DIAL BEN(R) (1-
800/342-5236). Investors should read the prospectus carefully before   
investing or sending money. Franklin Templeton Distributors, Inc., One   
Franklin Parkway, San Mateo, CA, is the funds' principal distributor and a   
wholly owned subsidiary of Franklin Resources, Inc.

(2) Past performance does not guarantee future results. Morningstar ratings are 
based on Class A shares. Lipper rankings are based on Class A shares, with the
exception of those for Mutual Series, which are based on Class Z shares, which 
are offered to qualified investors only and have no sales charges nor Rule 12b-1
fees. All asset data is based on 05/31/02 figures. Indices are unmanaged and one 
cannot invest directly in them. Unless otherwise noted, fund returns quoted 
reflect Class A shares. Performance returns, ratings and rankings for other 
classes may vary. Investment return and principal value will fluctuate with 
market conditions and an investor may experience a gain or loss when they sell 
their shares.

(3) Lipper calculates averages by taking all the funds in a peer group and
averaging their total returns for the periods indicated. Lipper tracks 128 peer
groups of long-term U.S. retail mutual funds, and the groups vary in size from 6
to 885. Lipper total return calculations include reinvested dividends and
capital gains, but do not include sales charges or expense subsidization by the
manager. Results may have been different if these or other factors had been
considered.

(4) Source: Lipper(R) Inc., 6/30/02. Of the eligible Franklin Templeton non-
money market funds tracked by Lipper, 35, 40, 34 and 19 funds ranked in the top
quartile and 24, 25, 22 and 19 funds ranked in the second quartile, for the 
one-, three-, five- and 10-year periods, respectively, for their respective 
Lipper peer groups.

(5) Source: Lipper(R) Inc., 6/30/02. Franklin Templeton funds received 87 Lipper
Leader designations for Preservation and 47 Lipper Leader designations for
Consistent Return. Lipper Leader for Consistent Return ratings reflect the
degree of a fund's historical success in achieving superior risk-adjusted
returns, adjusted for volatility, relative to peers. Lipper Leader for
Preservation ratings reflect the degree of a fund's historical success in
avoiding periods of losses relative to other funds within the same asset class.
Preservation ratings are relative, rather than absolute, measures, and funds
named Lipper Leaders for Preservation may still experience losses periodically;
those losses may by larger for equity and mixed equity funds than for fixed-
income funds. Twenty percent of funds analyzed in each category are named Lipper
Leaders. Lipper Leaders measure past fund performance, and past performance does
not guarantee future results. Lipper Leader status does not necessarily imply
that a fund had the best performance within its category. Lipper Leader status
is based on returns for a 3-year period and is calculated monthly using data
available at the time of the calculation; Lipper undertakes no responsibility
for updating the calculations more frequently than monthly to incorporate more
current data. 

(6) Source: Lipper(R) Inc., 6/30/02. 10 out of 11 eligible Templeton equity
funds ranked in the top two Lipper quartiles for the one-year period, 9 of 11
for the three-year period, 5 of 11 for the five-year period and 6 of 8 for the
10-year period for their respective Lipper peer groups. Templeton Growth Fund
Class A ranked 16 in a universe of 317 funds in Lipper's "Global Funds" group
for the one-year period, 18 of 211 for the three-year period, 19 of 136 for the
five-year period and 5 of 27 for the 10-year period. Templeton Foreign Fund
Class A ranked 55 in a universe of 784 funds in Lipper's "International Funds"
group for the one-year period, 52 of 563 for the three-year period, 52 of 381
for the five-year period and 15 of 81 for the 10-year period. Source for MSCI
returns: Standard & Poor's Micropal.

(7) Source: (Morningstar)(C) 6/30/02. For each fund with at least a three-year
history, Morningstar calculates a Morningstar Rating(TM) based on a Morningstar
Risk-Adjusted Return measure that accounts for variation in a fund's monthly
performance (including the effects of sales charges, loads and redemption fees),
placing more emphasis on downward variations and rewarding consistent
performance. The top 10% of funds in each category receive 5 stars, the next
22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2
stars and the bottom 10% receive 1 star. (Each share class is counted as a
fraction of one fund within this scale and rated separately, which may cause
slight variations in the distribution percentages.) The Overall Morningstar
Rating for a fund is derived from a weighted-average of the performance figures
associated with its three-, five- and 10-year (if applicable) Morningstar Rating
metrics.

(8) Source: (Morningstar)(C) 6/30/02. Based on Class A shares, Templeton Growth
Fund was rated against the following numbers of U.S. domiciled "World Stock"
funds over the following time period: 241 funds in the last three years, 164 in
the last five years and 33 in the last 10 years. With respect to these "World
Stock" funds, the fund received a Morningstar Rating of 4 stars, 4 stars and 5
stars for the three-, five-, 10-year periods, respectively. Based on Class A
shares, Templeton Foreign Fund was rated against the following numbers of U.S.
domiciled "Foreign Stock" funds over the following time period: 621 funds in the
last three years, 420 in the last five years and 84 in the last 10 years. With
respect to these "Foreign Stock" funds, the fund received a Morningstar Rating
of 4 stars, 4 stars and 4 stars for the three-, five-, 10-year periods,
respectively. Based on Class A shares, Templeton World Fund was rated against
the following numbers of U.S. domiciled "World Stock" funds over the following
time period: 241 funds in the last three years, 164 in the last five years and
33 in the last 10 years. With respect to these "World Stock" funds, the fund
received a Morningstar Rating of 4 stars, 4 stars and 4 stars for the three-,
five-, 10-year periods, respectively. 

(9) Source: Lipper(R) Inc., 6/30/02. 6 out of 6 eligible Mutual Series equity
funds ranked in the top two Lipper quartiles for the one-year period, 6 of 6 for
the three-year period, 5 of 5 for the five-year period and 3 of 3 for the 10-
year period for their respective Lipper peer groups.

(10) Source: (Morningstar)(C) 6/30/02. Based on Class A shares, Franklin
California Growth Fund was rated against the following numbers of U.S. domiciled
"Mid-Cap Growth" funds over the following time periods: 475 funds in the last
three years, 322 in the last five years and 79 in the last 10 years. With
respect to these "Mid-Cap Growth" funds, the fund received a Morningstar Rating
of 3 stars, 3 stars and 5 stars for the three-, five-, 10-year periods,
respectively. 

(11) Source: Lipper(R) Inc., 6/30/02. Franklin California Growth Fund Class A
ranked 77 in a universe of 406 funds in Lipper's "Multi-Cap Growth Funds" group
for the one-year period, 13 of 233 for the three-year period, 12 of 154 for the
five-year period and 1 of 45 for the 10-year period. 


Forward-Looking Statements 

Statements in this press release regarding Franklin Resources, Inc.'s business
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 risks, uncertainties and other important
factors 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 risks, uncertainties and other important factors are described
in more detail in the "Risk Factors" section in Franklin's recent filings with
the U.S. Securities and Exchange Commission, including, without limitation, the
"Risk Factors" section of the 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, 2001. 

•  The levels of our assets under management are subject to significant 
   fluctuations. 

•  We face strong competition from numerous and sometimes larger companies.

•  Changes in the distribution channels on which we depend could reduce our 
   revenues or hinder our growth.
 
•  Previously announced revenue and cost synergies from the acquisition of 
   Fiduciary Trust Company International may not be fully realized and may take 
   longer to realize than originally anticipated. 

•  For the next several years, insurance costs may increase materially and we 
   may not be able to obtain the same types or amounts of coverage. 

•  We may not recover all losses on insurance claims for property damage and 
   business interruptions arising out of the terrorist attacks on September 11, 
   2001. 

                      This information is provided by RNS
            The company news service from the London Stock Exchange