Franklin Templeton Investments Announces Realignment at Mutual Series.

Business Editors

SAN MATEO, Calif.--(BUSINESS WIRE)--July 12, 2001

Franklin Templeton Investments today announced a realignment of Mutual Series management. Michael Price will step down as Chairman and Director of Franklin Mutual Advisers, LLC and as Chair and Director of the Mutual Series fund boards. Peter Langerman, CEO, will assume these roles beginning at the end of October. David Winters, currently Senior Vice President and Director of Research, will become President and Chief Investment Officer of Mutual Series.

Mutual Series also announced the following promotions: Susan Potto and Jeff Diamond have been named portfolio managers, and Timothy Rankin, Deborah Turner and Joshua Ross have been named assistant portfolio managers. In addition, Mutual Series has hired Matthew Haynes, who was a co-portfolio manager of the four-star Global Dividend Growth Securities Fund, Michael Embler, a bankruptcy and distressed securities specialist and John Wimsatt, a financial institutions analyst. Larry Sondike will continue as a member of the Mutual Series investment team, eventually transitioning from day-to-day management of the funds to developing alternative investment products for the firm.

In making the announcement, Charles B. Johnson, Chairman and CEO of Franklin Resources, Inc. said, "We perceive this transition as a natural evolution of the business. The funds have had very solid performance during these past five years and we expect that to continue under the leadership of David Winters and Peter Langerman." Mr. Johnson added, "We will miss Michael Price, who has worked with us to ensure a smooth integration of our businesses. We are appreciative of his leadership and innumerable contributions."

Michael Price stated, "I am very confident that the strong team managing the various Mutual Series funds will continue the kind of value investing our shareholders have come to enjoy since Max Heine's days with Mutual starting back in 1949. I fully expect that Mutual Series will continue to do what it does best: to provide shareholders with solid returns over the long term through its proven value approach."

David Winters has been with Mutual Series for fourteen years. "Winters is passionate about the kind of value investing and shareholder activism established by Max Heine and Michael Price, and he is the natural choice for these leadership positions," commented Peter Langerman. "As Director of Research, David has guided and developed a strong team of analysts who are dedicated to the unique Mutual Series approach to value investing."

The company also announced that Raymond Garea and Robert Friedman will be leaving at the completion of their contracts on September 30, 2001 to pursue other interests. "Ray and Rob have both made significant contributions to the firm over the years," said Mr. Winters. "Their contributions in mentoring the portfolio management and research staff during that time will go a long way to ensuring continuity in our investment discipline."

Mutual Series' value strategy focuses on three types of investment opportunities: stocks trading at a discount to asset value; companies in the midst of change such as mergers, restructurings or spinoffs; and securities that are distressed or even in bankruptcy. All of the Mutual Series funds are ranked in the top quartile of their respective Lipper categories for the year-to-date period ended June 30, 2001.

      The portfolio managers for the Mutual Series Funds, effective
August 1, 2001, will be:

Mutual Shares Fund:        David Winters, Co-Portfolio Manager
                           Larry Sondike, Co-Portfolio Manager
                           Timothy Rankin, Assistant Portfolio Manager
                           Deborah Turner, Assistant Portfolio Manager

Mutual Qualified Fund:     Jeff Diamond, Co-Portfolio Manager
                           Susan Potto, Co-Portfolio Manager

Mutual Beacon Fund:        David Winters, Co-Portfolio Manager
                           Matthew Haynes, Co-Portfolio Manager

Mutual Discovery Fund:     David Winters, Portfolio Manager
                           Timothy Rankin, Assistant Portfolio Manager

Mutual European Fund:      David Winters, Co-Portfolio Manager
                           Matthew Haynes, Co-Portfolio Manager

Mutual Financial Services: Ray Garea, Portfolio Manager
Fund                       Joshua Ross, Assistant Portfolio Manager
                           Jeff Diamond, Assistant Portfolio Manager

Franklin Resources, Inc. (NYSE:BEN) is a global investment organization operating as Franklin Templeton Investments. Through its subsidiaries, Franklin Templeton provides global and domestic investment, shareholder, custody and distribution services to the Franklin, Templeton and Mutual Series funds and institutional accounts, as well as separate account management services. The San Mateo, CA-based company has over 50 years of investment experience and in April 2001, acquired Fiduciary Trust Company International. Fiduciary, founded in 1931, is one of the world's oldest global investment firms specializing in managing assets for institutional and high net worth investors worldwide. The combined entity had approximately $268 billion in assets under management as of June 30, 2001. For more information, please visit franklintempleton.com.