Legg Mason Partners Launches 130/30 U.S. Large Cap Equity Fund

NEW YORK, Jan. 22 /PRNewswire-FirstCall/ -- Legg Mason, Inc., a leading global asset manager, today announced that it has entered the 130/30 retail and institutional funds marketplace by launching the Legg Mason Partners 130/30 U.S. Large Cap Equity Fund. The fund is subadvised by Batterymarch Financial Management, Inc., which in 2007 introduced a 130/30 U.S. Large Cap separate-account strategy for institutional investors. The new fund will be an important product focus for Legg Mason's funds distribution arm, directed at individual investors as well as 401K and other defined contribution programs.

The Legg Mason Partners 130/30 U.S. Large Cap Equity Fund, which began trading on November 8, 2007, may be appropriate for retail investors who seek additional return from active managers, want to diversify their portfolios and understand the risks and rewards associated with shorting. It is also a vehicle for institutions that are interested in adding potential alpha-seeking strategies to their overall asset allocation but do not have prime brokerage relationships.

"After seeing much demand for the 130/30 product among institutional investors, we are excited to roll out a vehicle for retail and smaller institutional investors," stated Brian Chiappinelli, Manager and Product Specialist for Batterymarch Financial Management.

Batterymarch is a leading quantitative equity manager with over 40 years of experience in the business, including a decade managing long/short portfolios. Like all Batterymarch investment products, the firm's 130/30 strategy incorporates multiple risk control measures including minimum liquidity requirements, broad diversification and rules-based investment decisions. In addition, the investment team has extensive experience working with prime brokers to execute short-side trades. For more information on the 130/30 U.S. Large Cap Equity Fund, please access: http://www.leggmason.com/individualinvestors/.

About Legg Mason

Legg Mason, Inc. is a global asset management firm, with over $1 trillion in assets under management as of September 30, 2007. The Company provides active asset management in many major investment centers throughout the world. Legg Mason is headquartered in Baltimore, Maryland and its common stock is listed on the New York Stock Exchange (NYSE: LM) .

About Batterymarch

Batterymarch, a wholly owned, independently operated subsidiary of Legg Mason, Inc., manages U.S., international, emerging markets, global and hedged equity assets for institutional investors and subadvisory clients. One of the pioneers of quantitative investing, Batterymarch is an SEC-registered investment advisor and the sole quantitative manager among Legg Mason's subsidiaries. As of December 31, 2007, Batterymarch has $29.8 billion in total assets under management, representing clients based in North America, Europe and Asia. For more information, visit http://www.batterymarch.com.

Investors should consider the Fund's investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the Fund. To obtain a free prospectus, please call your financial professional or visit www.leggmason.com/individualinvestors. Please read the prospectus carefully before investing.

Investment Risks -- All investments involve risk including the possible loss of principal. The Fund may suffer significant losses on assets that it sells short. Unlike the possible loss on a security that is purchased, there is no limit on the amount of loss on an appreciating security that is sold short. By using the cash proceeds from short sales to purchase additional securities the Fund expects to use leverage, which involves special risks. The use of leverage may make any change in the Fund's net asset value even greater and cause increased volatility of returns. The Fund cannot guarantee that its leveraging strategy will be successful. The Fund may engage in active and frequent trading, resulting in higher portfolio turnover and transaction costs. This may lead to the distribution of higher capital gains to shareholders, increasing their tax liability. The Fund may use derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses, and have a potentially large impact on Fund performance. Legg Mason Investor Services, LLC. and Batterymarch Financial Management, Inc. are subsidiaries of Legg Mason, Inc.