EXHIBIT 99
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FROM: Xxxxxxxx Xxxxxxxxx Investments
Corporate Communications: Xxxx Xxxxxxxx (000) 000-0000
Investor Relations: Xxxx Xxxxxxxx (000) 000-0000
xxxxxxxxxxxxxxxxx.xxx
IBM
Media Relations: Xxxxx Xxxxxx (000) 000-0000
Xxxxxxx@xx.xxx.xxx
FOR IMMEDIATE RELEASE
FRANKLIN XXXXXXXXX INVESTMENTS AND IBM SIGN 10-YEAR
TECHNOLOGY SERVICES AGREEMENT
SAN MATEO, CA and XXXXXX, NY, February 28, 2001 - Franklin Resources, Inc.
(Franklin Xxxxxxxxx Investments) (NYSE: BEN) and IBM today announced a
10-year technology services agreement whereby IBM Global Services will
provide information technology services to Franklin Xxxxxxxxx Technologies,
the information processing division of Franklin Xxxxxxxxx Investments.
IBM will assume the management of Xxxxxxxx Xxxxxxxxx'x 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 Xxxxxxxx Xxxxxxxxx'x business
and technology needs evolve.
The service agreement, valued at approximately $480 million, will also
involve the transfer of 149 Franklin Xxxxxxxxx Technology employees to IBM
Global Services. IBM will assume the costs related to the transferred
Franklin Xxxxxxxxx Technology employees, as well as certain other costs and
obligations.
"This alliance is part of our ongoing efforts to enhance Xxxxxxxx Xxxxxxxxx'x
technology platform and refocus internal resources on other strategic
initiatives such as eBusiness, business integration and systems development,"
said Xxxxx X. Xxxx, Xx., member of the Office of the President and chief
information officer of Xxxxxxxx Xxxxxxxxx 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 Xxx Xxxxxx, general manager, Financial Services Sector,
IBM Global Services. "We will work with Xxxxxxxx Xxxxxxxxx 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 Xxxxxxxxx Investments. Through its subsidiaries, Franklin Xxxxxxxxx
Investments provides global and domestic investment, shareholder and
distribution services to the Franklin, Xxxxxxxxx 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 xxxxxxxxxxxxxxxxx.xxx or call 1-800/DIAL
BEN(R).
FORWARD-LOOKING STATEMENTS:
Statements in this presentation 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 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. Such risks, uncertainties and other important
factors include the following:
* We face strong competition from numerous and sometimes larger companies.
* Competing securities dealers and banks could restrict sales of our funds.
* Changes in the distribution channels on which we depend could reduce our
revenues and hinder our growth.
* New share classes that we have introduced yield lower revenues and have
reduced operating margins.
* If our asset mix shifts to predominantly fixed-income products, our
revenues could decline.
* We have become subject to an increased risk of asset volatility from
changes in the global equity markets.
* The levels of our assets under management are subject to significant
fluctuations.
* We face risks associated with conducting operations in numerous foreign
countries.
* General economic and securities markets fluctuations may reduce our sales
and market share.
* Our inability to meet cash needs could have a negative effect on our
financial condition and business operations.
* We face increased competition in hiring and retaining qualified
employees.
* Our emerging markets portfolios and related revenues are vulnerable to
political and economic risks associated with emerging markets.
For a discussion of such risks and uncertainties which could cause actual
results to differ from those contained in the forward-looking statements, see
"Risk Factors" in Franklin Resources' Annual Report, Form 10-K for the most
recently ended fiscal year as well as other documents filed by the company
with the Securities and Exchange Commission.
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