EXHIBIT 99.1
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One Franklin Parkway
San Mateo, CA 94403-1906
tel 650/312.2000
franklintempleton.com
[LOGO OMITTED]
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FROM: Franklin Resources, Inc.
Corporate Communications: Lisa Gallegos (650) 312-3395
Investor Relations: Greta Gahl (650) 312-4091
franklintempleton.com
FOR IMMEDIATE RELEASE
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FRANKLIN RESOURCES, INC., ANNOUNCES SETTLEMENT AGREEMENT BY SUBSIDIARY WITH
CALIFORNIA ATTORNEY GENERAL'S OFFICE
San Mateo, CA, November 17, 2004 - Franklin Resources, Inc. (Franklin Templeton
Investments) (NYSE: BEN) (the "Company") announced today that Franklin Templeton
Distributors, Inc. ("FTDI") reached an agreement with the California Attorney
General's Office ("CAGO"), resolving the issues resulting from the CAGO's
investigation concerning marketing support payments to securities dealers who
sell fund shares. The Company continues to be in discussions towards resolving
the Securities and Exchange Commission's (SEC) investigation related to this
matter. The investigations were previously disclosed by the Company earlier this
year in SEC filings and press releases.
The Company believes that the settlement of this matter is in the best interest
of the Company and its fund shareholders. Under the terms of the settlement with
the CAGO, FTDI neither admits nor denies allegations in the complaint and has
agreed to pay $2 million as a civil penalty, $14 million to Franklin Templeton
funds and $2 million to the CAGO.
The CAGO settlement recognized certain voluntary measures and undertakings of
the Company concerning marketing support payments to securities dealers who sell
fund shares including the fact that Franklin Templeton had eliminated the
practice of using brokerage commissions to recognize funds sales in November
2003.
As a result of the CAGO settlement, the previously announced results for the
quarter and fiscal year ended September 30, 2004 will be adjusted to include an
additional charge to income of $18.5 million ($12.2 million net of tax), which
is in addition to amounts accrued for ongoing governmental investigations,
proceedings and actions in quarters through June 30, 2004.
Franklin Resources, Inc. [NYSE:BEN], is a global investment 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
$371 billion in assets under management as of October 31, 2004. For more
information, please call 1-800/DIAL BEN(R) or visit franklintempleton.com.
FORWARD-LOOKING STATEMENTS
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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, some of which are listed below, 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 and other risks,
uncertainties and other important factors are described in more detail 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,
2003, and Franklin's most recent quarterly report on Form 10-Q.
* Governmental investigations, settlements of such investigations, ongoing
and proposed governmental actions, and regulatory examinations of the
company and its business activities as described in more detail in the
company's press releases and regulatory filings as well as civil litigation
arising out of or related to such matters could adversely impact our assets
under management, increase costs and negatively impact the profitability of
the company and future financial results.
* Regulatory or legislative actions and reforms, particularly those
specifically focused on the mutual fund industry, could adversely impact
our assets under management, increase costs and negatively impact the
profitability of the company and future financial results.
* Volatility in the equity markets may cause the levels of our assets under
management to fluctuate significantly.
* Weak market conditions may lower our assets under management and reduce our
revenues and income.
* 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.
* We face risks associated with conducting operations in numerous foreign
countries.
* Certain of the portfolios we manage, including our emerging market
portfolios and related revenues, are vulnerable to market-specific
political or economic risks.
* Our ability to meet cash needs depends upon certain factors, including our
asset value, credit worthiness and the market value of our stock.
* Technology and operating risk and limitations could constrain our
operations.
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