TDF Templeton Dragon Fund

The Templeton closed-end Funds referenced above, which trade on the New York Stock Exchange, announced today that each Fund's Board has approved a modification to the Funds' existing open-market share repurchase programs to authorize each Fund to repurchase up to 10% of a Fund's outstanding shares in open-market transactions, at the discretion of management. Under the Funds' previously announced open-market share repurchase programs, no specific amount of the Funds' outstanding shares was authorized for repurchase.

The Boards' recent action provides greater flexibility by enabling each Fund to engage in open-market repurchases under a continuing authorization for up to 10% of a Fund's outstanding shares, at the discretion of Fund management. Subject to the 10% limitation, the timing and amount of repurchases would continue to be in the discretion of the investment manager. In exercising its discretion consistent with its portfolio management responsibilities, the investment manager will take into account various other factors, including, but not limited to, the level of the discount, a Fund's performance, portfolio holdings, dividend history, market conditions, cash on hand, the availability of other attractive investments and whether the sale of certain portfolio securities would be undesirable because of liquidity concerns or because the sale might subject a Fund to adverse tax consequences. Any repurchases would be made on a national securities exchange at the prevailing market price, subject to exchange requirements, Federal securities laws and rules that restrict repurchases, and the terms of any outstanding leverage or borrowing of the Fund. If and when a Fund's 10% threshold is reached, no further repurchases could be completed until authorized by the Board. Until the 10% threshold is reached, Fund management will have the flexibility to rapidly commence share repurchases if and when it is determined to be appropriate in light of prevailing circumstances. As with the current share repurchase programs, the modified share repurchase programs are intended to benefit shareholders by enabling a Fund to repurchase shares at a discount to net asset value, thereby increasing the proportionate interest of each remaining shareholder in the Fund.

The Funds' investment managers are subsidiaries 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, Bissett, Fiduciary Trust, Darby, Balanced Equity Management and K2 investment teams. The San Mateo, CA-based company has more than 65 years of investment experience and over $809 billion in assets under management as of January 31, 2013. For more information, please call 1-800/DIAL BEN® or visit franklintempleton.com.

Templeton Dragon Fund, Inc. (NYSE: TDF) Templeton Russia and East European Fund, Inc. (NYSE: TRF) Templeton Emerging Markets Fund (NYSE: EMF)

For more information, please contact: Franklin Templeton Investments 1-800-342-5236