Franklin Templeton Limited Duration Income Trust Reports Asset Allocat

    Business Editors

    SAN MATEO, Calif.--(BUSINESS WIRE)--Jan. 31, 2005--Franklin Templeton Limited Duration Income Trust (AMEX:FTF), a closed-end investment company managed by Franklin Advisers, Inc., today reported its portfolio composition, certain portfolio characteristics and AMEX closing price as of December 31, 2004.
    Franklin Advisers, Inc., is a wholly owned subsidiary of Franklin Resources, Inc. (NYSE:BEN), 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 and Fiduciary Trust investment teams. The San Mateo, CA-based company has more than 50 years of investment experience and over $402 billion in assets under management as of December 31, 2004. For more information, please call 1-800/DIAL BEN(R) or visit franklintempleton.com.

FRANKLIN TEMPLETON LIMITED DURATION INCOME TRUST ASSET ALLOCATION at December 31, 2004 ====================================================================== MARKET PERCENTAGE SECTOR ALLOCATION VALUE (Millions) OF FUND(1) ---------------------------------------------------------------------- High Yield Corporate Bonds $231.6 39.7% Floating Rate Loans $160.2 27.4% Mortgage-Backed Securities $128.1 22.0% Other Asset Backed Securities $40.7 7.0% International Government Bonds (non-US$) $11.4 1.9% Investment Grade Corporate Bonds $4.6 0.8% Cash & Other Net Assets $7.1 1.2% ---------------------------------------------------------------------- Total Assets(6) $583.8 100.0% ======================================================================

MARKET PERCENTAGE TOP 10 INDUSTRIES(2) VALUE (Millions) OF FUND(1) ---------------------------------------------------------------------- Media $47.2 8.1% Pay Television $30.8 5.3% Utilities $30.5 5.2% Telecommunications $29.0 5.0% Healthcare $25.5 4.4% Industrial $24.2 4.2% Gaming/Leisure $23.5 4.0% Wireless Communications $21.3 3.7% Transportation $20.2 3.5% Chemicals $17.3 3.0% ---------------------------------------------------------------------- Total(6) $269.6 46.2%

====================================================================== MARKET VALUE PERCENTAGE 10 LARGEST HOLDINGS BY ISSUER (Millions) OF FUND(1) ------------------------------------------ ------------ ----------- Freddie Mac $53.7 9.2% Fannie Mae $38.6 6.6% Government National Mortgage Association $35.9 6.1% Dex Media $7.9 1.4% Allied Waste Industries $7.3 1.2% TRW Automotive $7.1 1.2% CSC Holdings Inc/Rainbow Media $6.9 1.2% Inmarsat/Grapeclose $6.8 1.2% Morgan Stanley ABS Capital $6.6 1.1% Laidlaw International Inc. $6.6 1.1% ------------------------------------------ ------------ ----------- Total (6) $177.4 30.4% ====================================================================== Number of positions 241 NAV per share $14.75 Market price per share $14.62 Number of shares outstanding 26,698,705 Total net assets $393,778,724

Weighted average duration (including leverage)(3) 3 years Weighted average credit quality(4) Baa3 Fund leverage percentage(5) 33%

(1) Percentage of total investments of the Fund. Total investments of the Fund include long-term and short-term investments and other net assets, excluding preferred stock issued. (2) Top 10 industries for corporate bonds and floating rate loans. (3) Duration calculated using internal methodologies. (4) For securities with multiple ratings, highest rating is used. (5) Preferred shares issued by the Fund divided by total assets of the Fund. (6) Total figures may not add up correctly due to rounding.

--30--EB/sf*

CONTACT: Franklin Advisers, Inc. Matt Walsh, 650-312-2245 franklintempleton.com

KEYWORD: CALIFORNIA INDUSTRY KEYWORD: BANKING SOURCE: Franklin Resources, Inc.

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