Franklin Templeton Investments and IBM Sign 10-Year Technology Services Agreement

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SAN MATEO, CA & SOMERS, NY - 28 Feb 2001: - Franklin Resources, Inc. (Franklin Templeton Investments) (NYSE: BEN) and IBM today announced a 10-year technology services agreement whereby IBM Global Services will provide information technology services to Franklin Templeton Technologies, the information processing division of Franklin Templeton Investments.

IBM will assume the management of Franklin Templeton's data center and distributed server operations. IBM will automate current operations by implementing new enterprise systems management architecture, and will continue to modify and update these systems as Franklin Templeton's business and technology needs evolve.

The service agreement, valued at approximately $480 million, will also involve the transfer of 149 Franklin Templeton Technology employees to IBM Global Services. IBM will assume the costs related to the transferred Franklin Templeton Technology employees, as well as certain other costs and obligations.

"This alliance is part of our ongoing efforts to enhance Franklin Templeton's technology platform and refocus internal resources on other strategic initiatives such as eBusiness, business integration and systems development," said Allen J. Gula, Jr., member of the Office of the President and chief information officer of Franklin Templeton Investments. "We are doing this to gain operational efficiency, to improve our customer service and to leverage the global expertise and economies of scale that IBM offers in the area of technology support service."

"IBM has world class experience servicing the IT needs of leading financial institutions," said Bob Zapfel, general manager, Financial Services Sector, IBM Global Services. "We will work with Franklin Templeton to deliver a high level of performance from its technology infrastructure."

IBM Global Services is the world's largest information technology services provider, with 2000 revenues of more than $33 billion. In addition to consulting, IBM Global Services is the world leader in IT outsourcing, hosting and systems services. IBM Global Services employs more than 150,000 professionals serving customers in 160 countries. IBM Corporation is the world's largest information technology company, with 80 years of leadership in helping businesses deploy technology for business advantage.

Franklin Resources, Inc. is a global investment organization operating as Franklin Templeton Investments. Through its subsidiaries, Franklin Templeton Investments provides global and domestic investment, shareholder 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 approximately $232 billion in assets under management as of January 31, 2001. For more information, please visit or call 1-800/DIAL BEN®.

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