Legg Mason released its fourth quarter and fiscal year 2007 results on Wednesday, reporting a net income of $172.5 million. Assets under management reached $968.5 billion, a $100.9 billion increase over the previous year, and revenues hit a record $1.14 billion.

Baltimore, Maryland � May 9, 2007 � Legg Mason, Inc. (NYSE: LM) today reported net income of $172.5 million, or $1.19 per diluted share, on revenues of $1.14 billion for the fourth quarter of fiscal 2007, which ended March 31, 2007. Assets under management ended the quarter at $968.5 billion, up $100.9 billion from a year ago and up $23.7 billion since December 31, 2006.

Raymond A. �Chip� Mason, chairman and chief executive officer said, �We are pleased with the fourth fiscal quarter results and we believe it indicates a continuing improvement in many of our businesses.

�The fiscal year 2007 results reflect our first full year as a global asset manager with a more diverse set of clients and investment capabilities. Over 95% of our fiscal year revenues were recurring, and while there may be quarter-to-quarter variances in performance fees, as occurred this quarter, overall we have a more stable base of revenues. Earnings per share increased 16% year over year, excluding the one-time gain from the sale of the Company�s brokerage business from the results of the prior fiscal year.

�Several of our managers were strong contributors during the quarter and the fiscal year, posting a significant increase in assets under management as a result of positive net client cash flows and market appreciation. During the fiscal year, Brandywine Global Investment Management grew assets under management 39%, the Permal Group increased 33%, Western Asset Management grew 16%, and Royce & Associates ended the year up 13%.

�Equity flow and performance continues to be an issue with certain of our equity managers. We believe that in most cases this will be self-correcting, as the market becomes more favorable to their style of investing.

�We have completed the previously announced U.S. mutual fund realignment, and now have a more streamlined set of products, utilizing our best investment management capabilities. In April, the Company completed the consolidation of the Dublin-domiciled funds it inherited from the Citigroup Asset Management acquisition with Legg Mason Global Funds, our flagship cross- border fund family. These funds are sold throughout Europe, Asia, and the Americas and were recently approved for distribution in Hong Kong, Singapore, and Taiwan. Currently, eight of our largest investment managers are sub-advisers for our cross-border funds.

�Our non-U.S. clients� assets are one-third of our total assets under management, and we have employees located in 35 cities in 17 countries around the world, including on-the-ground investment staff in 10 countries, including the U.S. We begin the new fiscal year well positioned for long-term growth opportunities.

�As previously announced, Jim Hirschmann has decided not to continue as President of Legg Mason. He will retain his role as Chairman and CEO of our largest subsidiary, Western Asset Management. Wherever Jim is in the Company, he adds important knowledge and management skills."

Read more at www.leggmason.com

Edited by: Neil Anderson, Managing Editor

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