Franklin Templeton Limited Duration Income Trust Reports Asset Allocation

• Press Release
• Source: Franklin Templeton
• On 8:05 pm EDT, Wednesday July 1, 2009

SAN MATEO, CA--(Marketwire - 07/01/09) - Franklin Templeton Limited Duration Income Trust (AMEX:FTF - News), a closed-end investment company managed by Franklin Advisers, Inc., today reported its portfolio composition, certain portfolio characteristics and NYSE Amex closing price as of May 31, 2009.

Franklin Advisers, Inc. is a wholly owned subsidiary of Franklin Resources, Inc. (NYSE:BEN - News), 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, Fiduciary Trust, Darby and Bissett investment teams. The San Mateo, CA-based company has more than 60 years of investment experience and over $448 billion in assets under management as of May 31, 2009. For more information, please call 1-800/DIAL BEN� or visit franklintempleton.com.

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FRANKLIN TEMPLETON LIMITED DURATION INCOME TRUST ASSET ALLOCATION at
May 31, 2009
==========================================================================
                                 MARKET                         PERCENTAGE
SECTOR ALLOCATION                VALUE (Millions)               OF FUND (1)
------------------------------   ----------------               ----------
High Yield Corporate Bonds &
 Preferred                                  147.9                     32.7%
Floating Rate Loans                         147.8                     32.6%
Mortgage-Backed Securities                   93.0                     20.5%
Other Asset Backed Securities                24.4                      5.4%
Government Agency                             0.0                      0.0%
International Government Bonds
 (US$ and non-US$)                            3.0                      0.7%
Investment Grade Corporate
 Bonds & Preferred                           32.3                      7.1%
Cash & Other Net Assets                       4.4                      1.0%
                                 ----------------               ----------
Total Assets (2)                 $          452.8                    100.0%
==========================================================================
                                 MARKET                         PERCENTAGE
TOP 10 INDUSTRIES (3)            VALUE (Millions)               OF FUND (1)
------------------------------   ----------------               ----------
Healthcare Services                          41.0                      9.1%
Utilities                                    24.2                      5.3%
Energy                                       22.1                      4.9%
Financial Services                           21.6                      4.8%
Media                                        21.0                      4.6%
Chemicals                                    20.7                      4.6%
Pay TV                                       20.4                      4.5%
Food & Beverage                              19.6                      4.4%
Info/Technology                              18.7                      4.3%
Industrials                                  17.9                      4.1%
                                 ----------------               ----------
Total (2)                        $          227.2                     50.6%
==========================================================================
                                 MARKET                         PERCENTAGE
10 LARGEST HOLDINGS BY ISSUER    VALUE (Millions)               OF FUND (1)
------------------------------   ----------------               ----------
Freddie Mac                                  44.9                      9.9%
Fannie Mae                                   39.5                      8.7%
Govt National Mtg Assn.                       8.6                      1.9%
Intelsat Corp.                                6.5                      1.4%
Aramark Corp.                                 6.2                      1.4%
Sungard Data Systems                          6.1                      1.3%
HCA Inc.                                      6.1                      1.3%
LB-UBS Commercial Mortgage                    5.7                      1.3%
NRG Energy Inc.                               5.1                      1.1%
VML US Finance LLC                            4.9                      1.1%
                                 ----------------               ----------
Total (2)                        $          133.5                     29.5%
==========================================================================
Number of positions                                         314
NAV per share                                     $       11.42
Market price per share                            $       10.06
Number of shares outstanding                         26,773,772
Total net assets                                  $ 305,709,404

Weighted average duration
 (including leverage) (4)    3 years
Weighted average credit
 quality (5)                    Baa3
Fund leverage percentage (6)     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.
    Does not include last day portfolio and shareholder trades.
(2) Total figures may not represent exact sum of items as a result of
    rounding.
(3) Top 10 industries for corporate bonds and floating rate loans.
(4) Duration calculated using internal methodologies. Rounded to the
    nearest year.
(5) For securities with multiple ratings, highest rating is used.
(6) Preferred shares issued by the Fund and mortgage dollar rolls used for
    leverage divided by total assets of the Fund.

 
Contact:
Franklin Templeton Investments
Shareholders/Financial Advisors:
(800) 342-5236
Media:
(650) 312-2245