Franklin Templeton Limited Duration Income Trust Reports Asset Allocation

SAN MATEO, CA -- (Marketwire) -- 02/06/13 -- Franklin Templeton Limited Duration Income Trust (NYSE MKT: FTF), a closed-end investment company managed by Franklin Advisers, Inc., today reported its portfolio composition, certain portfolio characteristics and NYSE MKT closing price as of December 31, 2012.

Franklin Advisers, Inc., is a wholly owned subsidiary 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, Fiduciary Trust, Darby and Bissett investment teams. The San Mateo, CA-based company has 65 years of investment experience and over $781 billion in assets under management as of December 31, 2012. For more information, please call 1-800/DIAL BEN® or visit franklintempleton.com.

FRANKLIN TEMPLETON LIMITED DURATION INCOME TRUST ASSET ALLOCATION at
 December 31, 2012
===========================================================================

                                      MARKET                    PERCENTAGE
                                      VALUE
SECTOR ALLOCATION                     (Millions)                OF FUND (1)
                                      ------------              -----------
High Yield Corporate Bonds &
 Preferred Securities                        183.4                     33.1%
Investment Grade Corporate
 Bonds                                         0.0                      0.0%
Floating Rate Loans                          195.1                     35.2%
Mortgage-Backed Securities                   131.4                     23.7%
Other Asset-Backed Securities
 (2)                                          28.8                      5.2%
International Government Bonds
 (US$ & non-US$)                               6.9                      1.2%
Common Stock & Warrants                        0.6                      0.1%
Cash & Other Net Assets (3)                    8.8                      1.6%
                                      ------------              -----------
Total Assets (4)                      $      554.9                    100.0%
                                      ============              ===========

                                      MARKET                    PERCENTAGE
                                      VALUE
TOP 10 INDUSTRIES (5)                 (Millions)                OF FUND (1)
                                      ------------              -----------
Healthcare Services                           45.6                      8.2%
Energy                                        33.0                      6.0%
Automotive                                    26.7                      4.8%
Info/Technology                               22.6                      4.1%
Industrials                                   21.8                      3.9%
Financial Services                            21.5                      3.9%
Retail                                        20.5                      3.7%
Gaming/Leisure                                19.0                      3.4%
Chemicals                                     19.0                      3.4%
Metals & Mining                               18.1                      3.3%
                                      ------------              -----------
Total (4)                             $      247.9                     44.7%
                                      ============              ===========
                                      MARKET                    PERCENTAGE
                                      VALUE
10 LARGEST HOLDINGS BY ISSUER         (Millions)                OF FUND (1)
                                      ------------              -----------
Fannie Mae                                   107.0                     19.3%
Freddie Mac                                   23.0                      4.1%
Intelsat                                       6.6                      1.2%
Caesars Entertainment                          6.1                      1.1%
ADS Waste                                      5.5                      1.0%
Calpine                                        5.2                      0.9%
FMG Resources                                  5.2                      0.9%
Reynolds Group Holdings Inc.                   4.8                      0.9%
Visant Corp.                                   4.7                      0.8%
Del Monte Foods                                4.7                      0.8%
                                      ------------              -----------
Total (4)                             $      172.8                     31.1%
                                      ============              ===========
Number of positions                                         422
NAV per share                                      $      14.17
Market price per share                             $      14.37
Number of shares outstanding                         26,819,357
Total net assets                                   $379,984,083

Weighted average duration
 (including leverage) (6)     3 years
Fund leverage percentage (7)  32%

(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) May include collateralized loan obligations ("CLOs").
(3)Includes currency forward contracts.
(4)Total figures may not represent exact sum of items as a result of
 rounding.
(5)Top 10 industries for corporate bonds and floating rate loans.
(6)Duration calculated using internal methodologies. Rounded to the nearest
 year.
(7) Preferred shares issued by the Fund and mortgage dollar rolls used for
 leverage divided by total assets of the Fund.

You may request a copy of the Fund's current Report to Shareholders by contacting Franklin Templeton's Fund Information Department at 1-800/DIAL BEN® (1-800-342-5236) or by visiting franklintempleton.com. All investments involve risks, including possible loss of principal. Interest rate movements and mortgage prepayments will affect the Fund's share price and yield. Bond prices generally move in the opposite direction of interest rates. As the prices of bonds in a fund adjust to a rise in interest rates, the fund's share price may decline. Investments in lower-rated bonds include higher risk of default and loss of principal. The Fund is actively managed but there is no guarantee that the manager's investment decisions will produce the desired results. This press release contains statistical data regarding the Fund's portfolio. The Fund's complete portfolio holdings are publicly available on a quarterly basis on Form N-Q, as well as in the Fund's Annual and Semi-Annual Reports to Shareholders filed with the U.S. Securities and Exchange Commission. These documents may be found at sec.gov. For portfolio management discussions, including information regarding the Fund's investment strategies, please view the most recent Annual or Semi-Annual Report to Shareholders which can be found at franklintempleton.com or sec.gov.