Franklin Templeton Investments Corp. is calling a special meeting for unitholders of Templeton International Balanced Fund and Templeton Canadian Bond Fund to consider merging the funds into Templeton Global Balanced Fund and Bissett Bond Fund, respectively. Subject to unitholder and regulatory approval, the mergers are expected to take place in September 2001.

Under the terms of the merger proposal, holders of each of the merging funds will be able to exchange their units on a tax deferred basis for units of Templeton Global Balanced Fund and Bissett Bond Fund, equivalent in value to the underlying net assets of the merging funds. The new units received will be the same series – A, F, I or O – as originally held by unitholders of the merging funds.

The proposed mergers will consolidate the two smaller funds into larger funds, while ensuring unitholders remain in funds with similar investmentmandates.

The merger proposal will be put forward at the special meeting of unitholders on or around August 31, 2001, and will require approval by a majority of the votes cast in person or by proxy at that meeting. Additional details will be set out in a management information circular to be distributed to unitholders — as of record date July 19, 2001 — prior to the special meeting.