1. 1 Batterymarch Brandywine Global ClearBridge Advisors Legg Mason Capital Management Legg Mason Global Equities Group Permal Private Capital Management Royce & Associates Western Asset Management Matt Schiffman Legg Mason Head of Retail - Americas

2. 2 Legg Mason — A History of Innovation Headquartered in Baltimore, MD with 33 offices around the world Serving individual and institutional investors in over 190 countries, for over a century Continuous evolution through manager acquisition for over four decades Leading, diversified global asset manager − 3rd largest SMA provider 1 − 5th largest closed-end fund manager in the U.S. 2 − 8th largest advisor-sold fund complex 2 − 8th largest manager of institutional assets worldwide 3 − 11th largest manager of worldwide assets 3 1 MMI, Dover Financial Research, 2nd Quarter 2009 Edition, data as of 3/31/2009 2 Simfund (Strategic Insight), as of 6/30/2009 3 Pension & Investments, 5/2009 based on 12/31/2008 worldwide assets under management

3. 3 Our Unique Multi-Manager Franchise Our model allows us to attract and retain renowned investment talent, enabling us to provide specialized investment solutions for our clients. One of the world’s largest managers of fixed income assets with over 100 products, managed globally, in 17 countries Value investment boutique offering equity, fixed income and balanced portfolios that invest in U.S., international and global markets One of the oldest and largest hedge fund-of-fund managers in the world with over 30 years of experience Our largest equity manager covering small cap value to large cap growth featuring high conviction, low turn-over portfolios Over 30 years of experience investing in small-cap companies through bottom- up, value oriented research Established in 1969, the firm is a pioneer in global quantitative equity management Specializes in long-term, valuation-based equity management using bottom-up stock selection International and global investment boutique focused on institutional clients, sub- advisory relationships, and fulfilling the investment needs of high net worth individuals All investment managers are subsidiaries of Legg Mason, Inc. Legg Mason Investor Services, LLC is a subsidiary of Legg Mason, Inc.

4. 4 “ Growth Through Focus” Strategy

5. 5 Best Practices Are Emerging In Retail Sales & Distribution Segmentation based on simplistic channel structures Limited differentiation in the frequency and quality of contacts with intermediaries to achieve strategic objectives Determine priority firms and provide deep coverage, with on-going, disciplined prioritization based on rigorous analytics Communicate client priorities clearly across organization to ensure different levels of service Key accounts 2 Client segmentation 1 Consultant relations 3 Sales effectiveness 4 Servicing independents 5 Some relationships with senior executives at major intermediaries Role primarily focus on negotiating revenue-sharing agreements Expand role of key accounts to forge deeper, consultative relationships with senior client executives at focus firms Staff with senior business leaders with sophisticated knowledge of market, client, and products Typically informal function filled by key account managers Establish formal group focused on servicing the analytical requirements of due diligence/manager selection groups Relationship-driven sales techniques with minimal product knowledge Service mostly reactive to client requests and handle day-to-day tasks Dramatically upgrade investment sophistication of wholesalers by leveraging product experts, use of specialists (e.g., retirement), and invest in training Adopt consultative sales approach; focus and tier efforts based on rigorous adviser segmentation Success due to existing presence, word-of-mouth referrals Develop strategic, marketing-based techniques for targeting independents, including data analysis to profile like-minded advisers, conferences, and word- of-mouth referrals FROMTO

6. 6 Technology That Enables A True Client-centric Approach Evolution of customer relationship management (CRM) strategy Continued development of customized financial advisor portal views −NBD – firm specific −IAD – generic view plus target firms offered firm specific views Robust email platform including: −Weekly Legg Mason Flash (investment themes) −Product focused campaigns −Client servicing with up-to-date commentary/data Addition of online subscription service © 2009 Legg Mason Investor Services, LLC. Member FINRA, SIPC