Franklin Templeton Investments Takes Full Control of Bradesco Templeton Asset Management.

SAO PAULO, Brazil -- Franklin Resources, Inc. (Franklin Templeton Investments) announces that as of July 31, 2006, it has taken full control of Bradesco Templeton Asset Management Ltda (BTAM), which will now be known as Franklin Templeton Investimentos (Brasil) Ltda. The joint venture relationship which created BTAM, a Brazilian asset management company, was originally established in 1997 as a joint venture between subsidiaries of Banco Bradesco (which had 50.1% control) and Franklin Templeton Investments (49.9% control). BTAM was focused on managing funds on behalf of Brazilian institutional investors, investing purely in Brazilian assets.

"Full acquisition of BTAM will better equip Franklin Templeton Investimentos (Brasil) to take advantage of the exciting opportunities that present themselves in Latin America's largest economy, especially as the Brazilian markets and regulations are further integrated into the global economy," said William Pingleton, Managing Director of international retail sales at Franklin Templeton Investments.

Pingleton underlined a number of important milestones that the Bradesco-Franklin Templeton joint venture had achieved since its launch. "We are proud to have participated in the revamp of the Brazilian capital markets," he said. "BTAM has actively supported the Novo Mercado since its creation, persuading the companies in which it invests to join early." (The Novo Mercado, or new market, is a part of Brazil's main Bovespa stockmarket that admits companies that issue only voting shares). In addition, Pingleton continued, "BTAM's management team regularly engaged with the companies in which it invested to improve their corporate governance and investor-relation practices, with excellent results."

Pingleton said the excellent performance of BTAM's corporate governance fund added to its institutional impact. "BTAM's investment strategy provided above-average returns, with very low correlation to broader market indicators and with low volatility," he said. "As a result, the company was recently able to secure a significant mandate from one of the largest pension funds in Brazil. In fact, this was the first equity separate account this pension fund had outsourced in many years."

Franklin Templeton continues to have an excellent relationship with Bradesco, according to Pingleton. "We were very happy to work with such a dynamic partner," he said. "Our partnership over the past nine years has been very rewarding, and we hope to find new opportunities to work together again with Bradesco in the future."

Franklin Templeton Investimentos (Brasil) Ltda incorporates the entire investment team of BTAM. This team averages 10 years of market experience, and four years with BTAM. According to Franklin Templeton Investimentos' chief investment officer Mauro Rodrigues da Cunha, "Franklin Templeton has shown a long-term commitment to Brazil, and this transaction reinforces this commitment. Our team is very excited about becoming full members of the Franklin Templeton family, and about the opportunities to leverage the work we have been doing up until now -- expanding our product offerings while maintaining a focused and disciplined approach to investing."

Franklin Resources, Inc. (NYSE:BEN) is 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 $490 billion in assets under management at June 30, 2006. For more information, please call 1-800/DIAL BEN(R) or visit franklintempleton.com.