Franklin Resources (BEN) 8-K Results of Operations and Financial Condition

EXHIBIT 99.1

One Franklin Parkway San Mateo, CA 94403-1906 tel    (650) 312-2000 franklinresources.com

FROM:	Franklin Resources, Inc.
	Corporate Communications: Matt Walsh (650) 312-2245
	Investor Relations: Brian Sevilla (650) 312-4091
	franklinresources.com

FOR IMMEDIATE RELEASE

Franklin Resources, Inc. to Announce First Quarter Results on January 27, 2011 and

Introduce New Income Statement Presentation

San Mateo, CA, January 11, 2011 - On Thursday, January 27, 2011, Franklin Resources, Inc. (the company) [NYSE:BEN] will release its first fiscal quarter 2011 operating results at approximately 8:30 a.m. Eastern Time. Pre-recorded audio commentary on the results from President and Chief Executive Officer Greg Johnson and Executive Vice President and Chief Financial Officer Ken Lewis will be available at approximately 8:30 a.m. Eastern Time. They will also lead a live teleconference later that day to answer questions though analysts and investors are encouraged to contact Investor Relations for any clarifications or questions on the contents of the earnings release.

Access to the pre-recorded audio commentary and accompanying slides will be available via franklinresources.com. The pre-recorded audio commentary can also be accessed by dialing (888) 843-7419 in the U.S. and Canada or (630) 652-3042 internationally using access code 28808142, any time through 11:59 p.m. Eastern Time on February 10, 2011.

The live conference call will be held at 4:30 p.m. Eastern Time to answer questions. Access to the teleconference will be available via franklinresources.com or by dialing (800) 446-2782 in the U.S. and Canada or (847) 413-3235 internationally. A replay of the call can also be accessed by calling (888) 843-7419 in the U.S. and Canada or (630) 652-3042 internationally using access code 28808145, after 7:00 p.m. Eastern Time on January 27, 2011 through 11:59 p.m. Eastern Time on February 10, 2011.

Beginning with the first fiscal quarter 2011 results announcement, the company will introduce a new consolidated statement of income presentation. Today’s release includes quarterly and annual operating results for fiscal years 2009 and 2010 in the new presentation.

Summary of Changes

• Within operating revenues, underwriting and distribution fees is renamed sales and distribution fees

• Amortization of deferred sales commissions, previously presented as a separate line, and certain distribution-related expenses, previously included in advertising and promotion expenses, are combined with underwriting and distribution expense in a new line named sales, distribution and marketing

• Occupancy expense, previously combined with information systems and technology, is now a separate line

• Advertising and promotion expense not reclassified to sales, distribution and marketing is now included with other expense in a new line named general, administrative and other

• Net income (loss) attributable to noncontrolling interests is now presented separately for nonredeemable and redeemable noncontrolling interests

These changes are intended to provide investors with improved disclosure of total sales, distribution and marketing expenses and greater transparency of information systems, technology and occupancy expenses. In addition, the change to net income (loss) attributable to noncontrolling interests provides for consistency between the amounts in the statement of income and the changes in stockholders’ equity. The presentation change does not represent a restatement of any previously published financial results.

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Franklin Resources, Inc.

Preliminary Condensed Consolidated Income Statements

Unaudited

(in thousands, except per share data)

	Three months ended												Twelve  months ended 30-Sep-10
	30-Sep-10			30-Jun-10			31-Mar-10			31-Dec-09
Operating Revenues
Investment management fees	$	919,367		$	915,866		$	836,077		$	806,664		$	3,477,974
Sales and distribution fees		529,563			529,313			496,781			488,053			2,043,710
Shareholder servicing fees		69,981			72,976			71,376			69,543			283,876
Other, net		9,493			15,916			8,879			13,151			47,439
Total operating revenues		1,528,404			1,534,071			1,413,113			1,377,411			5,852,999
Operating Expenses
Sales, distribution and marketing		599,028			590,876			557,398			535,593			2,282,895
Compensation and benefits		275,300			280,333			271,041			254,312			1,080,986
Information systems and technology		47,629			40,156			39,809			38,003			165,597
Occupancy		33,699			35,862			29,799			30,607			129,967
General, administrative and other		63,744			65,280			53,931			51,919			234,874
Total operating expenses		1,019,400			1,012,507			951,978			910,434			3,894,319
Operating Income		509,004			521,564			461,135			466,977			1,958,680
Other Income (Expenses)
Consolidated sponsored investment products gains (losses), net		2,426			(14,670	)		5,669			15,072			8,497
Investment and other income (losses), net		50,933			(7,262	)		42,488			32,978			119,137
Interest expense		(9,992	)		(4,836	)		(936	)		(742	)		(16,506	)
Other income (expenses), net		43,367			(26,768	)		47,221			47,308			111,128
Income before taxes		552,371			494,796			508,356			514,285			2,069,808
Taxes on income		176,517			135,113			149,946			156,736			618,312
Net income		375,854			359,683			358,410			357,549			1,451,496
Less: net income (loss) attributable to:
Nonredeemable noncontrolling interests		98			180			204			216			698
Redeemable noncontrolling interests		2,850			(992	)		1,521			1,730			5,109
Net Income Attributable to Franklin Resources, Inc.	$	372,906		$	360,495		$	356,685		$	355,603		$	1,445,689
Earnings per Share1
Basic	$	1.66		$	1.59		$	1.56		$	1.55		$	6.36
Diluted		1.65			1.58			1.55			1.54			6.33
Dividends per Share	$	0.22		$	0.22		$	0.22		$	3.22		$	3.88

1 The computation of earnings per share pursuant to the two-class method excludes from net income attributable to Franklin Resources, Inc. the earnings allocated to participating securities, which consist of nonvested stock and stock unit awards that contain nonforfeitable rights to dividends or dividend equivalents. Earnings allocated to participating securities were $1.4 million, $2.0 million, $2.0 million and $3.3 million for the three months ended September 30, 2010, June 30, 2010, March 31, 2010 and December 31, 2009, and $7.6 million for the twelve months ended September 30, 2010.

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Franklin Resources, Inc.

Preliminary Condensed Consolidated Income Statements

Unaudited

(in thousands, except per share data)

	Three months ended												Twelve  months ended 30-Sep-09
	30-Sep-09			30-Jun-09			31-Mar-09			31-Dec-08
Operating Revenues
Investment management fees	$	724,953		$	625,025		$	552,936		$	600,274		$	2,503,188
Sales and distribution fees		433,361			365,217			304,655			304,929			1,408,162
Shareholder servicing fees		67,381			67,113			66,514			66,342			267,350
Other, net		13,232			16,203			(11,833	)		(2,215	)		15,387
Total operating revenues		1,238,927			1,073,558			912,272			969,330			4,194,087
Operating Expenses
Sales, distribution and marketing		475,265			398,218			343,113			336,323			1,552,919
Compensation and benefits		246,773			230,943			236,732			244,063			958,511
Information systems and technology		40,614			38,346			37,776			40,114			156,850
Occupancy		31,385			29,857			27,622			28,484			117,348
General, administrative and other		60,168			50,008			43,707			51,982			205,865
Total operating expenses		854,205			747,372			688,950			700,966			2,991,493
Operating Income		384,722			326,186			223,322			268,364			1,202,594
Other Income (Expenses)
Consolidated sponsored investment products gains (losses), net		42,830			44,503			(11,106	)		(47,442	)		28,785
Investment and other income (losses), net		87,338			52,574			(33,893	)		(45,022	)		60,997
Interest expense		(268	)		(211	)		(2,092	)		(1,200	)		(3,771	)
Other income (expenses), net		129,900			96,866			(47,091	)		(93,664	)		86,011
Income before taxes		514,622			423,052			176,231			174,700			1,288,605
Taxes on income		136,180			116,204			67,159			64,771			384,314
Net income		378,442			306,848			109,072			109,929			904,291
Less: net income (loss) attributable to:
Nonredeemable noncontrolling interests		122			289			36			(3,922	)		(3,475	)
Redeemable noncontrolling interests		10,964			8,843			(1,770	)		(7,049	)		10,988
Net Income Attributable to Franklin Resources, Inc.	$	367,356		$	297,716		$	110,806		$	120,900		$	896,778
Earnings per Share1
Basic	$	1.60		$	1.28		$	0.48		$	0.52		$	3.87
Diluted		1.59			1.28			0.47			0.52			3.85
Dividends per Share	$	0.21		$	0.21		$	0.21		$	0.21		$	0.84

1 The computation of earnings per share pursuant to the two-class method excludes from net income attributable to Franklin Resources, Inc. the earnings allocated to participating securities, which consist of nonvested stock and stock unit awards that contain nonforfeitable rights to dividends or dividend equivalents. Earnings allocated to participating securities were $2.2 million, $2.4 million, $0.9 million and $0.9 million for the three months ended September 30, 2009, June 30, 2009, March 31, 2009, and December 31, 2008, and $6.4 million for the twelve months ended September 30, 2009.

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Franklin Resources, Inc. 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, Fiduciary Trust, Darby and Bissett investment teams. The San Mateo, CA-based company has more than 60 years of investment experience and over $670 billion in assets under management as of December 31, 2010. For more information, please visit franklinresources.com.

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