DR. MARK MOBIUS OF FRANKLIN TEMPLETON INVESTMENTS COMMENTS ON ASIAN EMERGING MARKETS

DR. MARK MOBIUS OF FRANKLIN TEMPLETON INVESTMENTS COMMENTS ON ASIAN EMERGING MARKETS Dr. J Mark Mobius, President, Templeton Emerging Markets Fund Inc. assesses the prospects for Asian markets. "The South Korean market continues to benefit as a result of strengthening macroeconomic fundamentals while Taiwan should be able to continue its long-term growth trend on the back of improving trade and a stable political climate, albeit with some short-term corrections along the way as a result of tensions between the island and mainland China," commented Mark Mobius. "In addition, progressive political changes leading to efficient and strong central governments could in turn attract foreign investment. This has certainly proven to be the case in countries such as Thailand and Indonesia." "We consider that most Asian markets are better equipped now than they were in 1997/8 to weather slowing growth in the US and, for that matter, globally, as many have abandoned their pegged exchange rates, decreased short-term debt and built up large current account surpluses and foreign exchange reserves," said Mark Mobius. "We expect the recovery taking place in Asia to progress on to its next phase where the trade-led recovery becomes one driven by increased domestic demand. Low interest rates, higher levels of liquidity as a result of greater confidence in emerging markets and improving corporate governance standards all continue to support the performance of Asian stock markets." Growth rates in Asian markets remain generally twice that of developed countries or are decelerating at slower rates than developed countries. "Countries such as China and India will continue to grow at significantly higher growth rates than developed countries such as the U.S., Japan and the United Kingdom. Within a decade, these countries could evolve into global economic powers and we expect stock prices in these countries to reflect this growth as we move forward," commented Mark Mobius. "Improving economic performances, low interest rates and an improvement in investor sentiment towards emerging market investing should allow emerging markets to perform better," said Mark Mobius. "Moreover, with corporate governance gaining recognition in more and more emerging markets, companies/markets, which recognise the importance of respecting and protecting minority shareholders, could find greater inflows of funds coming their way. Overall, we believe that the discipline imposed by our ground-up, value orientation has guided us well and we expect this strategy to bring long-term benefits to our investors." -Ends- For further information, please contact: Laura Cronin David Masters Lansons Communications Lansons Communications Tel. (020) 7294 3607 [direct] Tel. (020) 7294 3685 Fax. (020) 7490 5460 Fax. (020) 7490 5460 E-mail: laurac@lansons.com E-mail: davidm@lansons.com Switchboard: (020) 7490 8828 Switchboard: (020) 7490 8828 Jamie Hammond Alastair Barclay Sales & Marketing Director Marketing Manager Franklin Templeton Franklin Templeton Investments Investments Tel. (020) 7925 7139 Tel. (0131) 242 4000 E-mail: E-mail: jhammond@franklintempleton.co abarclay@franklintempleton.co .uk .uk See below for Franklin Templeton Investments' roundup on Emerging Markets Notes to editors 1. Emerging Markets Roundup Asia Tensions between mainland China and Taiwan rose again in August as Taiwanese President Chen Shui-bian commented that "each side of the Taiwan Strait is a country" and urged for consideration for a referendum to decide Taiwan's future. The US once again stressed its support for "One China". The island's recovery has been much faster than expected with second quarter GDP growing 4.0% y-o-y compared to a revised 1.2% in the first quarter. Strengthening exports and manufacturing output were key contributors. In South Korea, parliamentary elections took place in August 2002 where the main opposition party, the Grand National Party (GNP) won a landslide victory. Attention has now shifted to the upcoming presidential elections in December 2002. Talks between North and South Korea were revived during the month after a nine-month break, as both sides agreed to continue discussions in the future. On economics, second quarter GDP rose 6.3% y-o-y mainly due to growing exports and capital investment. Africa The South African government's inquiry into the rapid devaluation of the Rand in the last quarter of 2001 was concluded with no significant explanations. After the collapse of Enron in the US and two local banks, the central bank established a four-member committee to review the corporate governance practices of the country's five largest banks and boost confidence in the banking sector. Ending a period of uncertainty, the government also announced that it would not nationalise the mining industry. Latin America Mexico's second quarter GDP grew 2.1% y-o-y, after contracting 2.0% in the previous quarter. A 2.5% growth in the industrial sector supported Mexico's economic growth. While the recovery is expected to continue in the second half of the year, slowing growth in the US does not bode well for Mexico's exports. Brazil's record US$30 billion stand-by arrangement with the IMF failed to alleviate concerns over the performance of its financial markets. We expect volatility to continue as the country gears up for the elections in October. Aimed at diffusing the financial crisis, the central bank announced a set of measures including the purchase of domestic debt and an increase in bank reserve requirements. Southern Europe In Turkey, Economy Minister Kemal Dervis resigned from his post early this month and later joined the centre-left Republican People's Party (CHP), ahead of the elections in November. In line with EU requirements, Turkey's parliament voted to in favour of abolishing the death penalty, despite opposition from the Nationalist Action party. Accession talks are expected to commence in December this year. 2. Franklin Templeton Investments Franklin Templeton Investments, which is the trading name of Franklin Resources, Inc. (NYSE: BEN), is one of the world's largest independent fund managers and has over GBP 173 billion under management (as at 30.06.2002) for more than 9 million investors worldwide. Franklin Templeton Investments is a unique offering. It has four distinct investment platforms available to clients following a number of acquisitions over the last decade. As the integrity of each Company's investment process has been maintained, Franklin Templeton Investments clients have access to four distinct investment platforms, each with a different investment style, through one point of contact. Each fund platform has over 50 years experience managing assets in its distinct style. Franklin acquired Templeton Investment Management in 1992; in 1996 it acquired New Jersey-based Mutual Series; and in 2001 it bought Fiduciary Trust. Utilising the four fund platforms, Franklin Templeton Investments have avoided the problems commonly associated with manager mergers - such as fund manager departures and periods of choppy performance as products are realigned to the new house style. Each of the four platforms is subject its own management controls and, because of the existence of the others, managers do not come under pressure to shift away from their proven management style. This benefits long-term performance. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/09/13/20020913BIT00240/wkr0001.doc http://www.waymaker.net/bitonline/2002/09/13/20020913BIT00240/wkr0002.pdf