Franklin Federal Tax-Free Income Fund/A

Fund started: October 7, 1983

Min. initial investment: $1,000

Load (front-end): 4.25%

12(b)-1 fee: 0.09%

Net assets: $6.6 billion

P/E ratio: NA

P/B ratio: NA

Median market cap: NA

Expense ratio: 0.61%

Turnover: 13.18%

3-year alpha: 0.04%

3-year beta: 0.74%

3-year r-squared: 0.80%

3-year stand. deviation: 4.30%

Returns

• 2003: 5.84%
• 2002: 7.19%
• 2001: 4.63%
• 12-month (annualized): 7.10%
• 3-year (annualized): 6.26%
• 5-year (annualized): 5.24%

Top Five Holdings*

• 1. New York City G.O.3.47%
• 2. NC Eastern Muni Power2.44%
• 3. California St. G.O.2.15%
• 4. New York City Mun. Water Fin. Authority2.12%
• 5. Tobacco Settlement Asset-Backed Bonds1.46%

Source: Standard & Poor's and Franklin Templeton as of February 29, 2004