Complaint Filed By Minority Shareholders Of Franklin Advantage Real Estate Income Fund.

SAN MATEO, Calif.--(BUSINESS WIRE)--Dec. 11, 1996--On December 2, 1996, Adrien H. Vigneau, Trustee of the San Ysidro Development Retirement Co. Trust, and Edward A. Vigneau, on behalf of themselves and certain other minority shareholders of Franklin Advantage Real Estate Income Fund ("Advantage"), filed a complaint in the California Superior Court for San Mateo County against Advantage, its directors, the Fund's advisor, Franklin Properties, Inc., Franklin Resources, Inc. and the Massachusetts State Teachers' and Employees' Retirement Systems Trust ("MASTERS").

The complaint alleges that defendants breached fiduciary duties to plaintiffs and other minority shareholders in connection with the purchase by Franklin Resources, Inc. in August 1994 of MASTER's 46.6% interest in Advantage and in connection with the merger of Advantage into Franklin Select Realty Trust in May 1996.

Plaintiffs also allege that defendants misstated certain material facts or omitted to state material facts in connection with these transactions. Plaintiffs seek damages in an unspecified amount and certain equitable relief. The defendants deny any wrongdoing in these matters and intend to vigorously defend the action.

CONTACT: Franklin Properties, Inc.

David Goss, 415/312-5824

Internet: http://www.frk.com/properties