Legg Mason's Scholars Choice® College Savings Program Continues To Earn Prominent Performance Ranking From Savingforcollege.com

BALTIMORE, Aug. 22, 2011 /PRNewswire/ -- Legg Mason, Inc. (NYSE: LM) reported today that its Scholars Choice® College Savings Program was again recognized as one of the two best advisor-sold 529 plans by Savingforcollege.com.  Scholars Choice was the # 2-ranked advisor-sold 529 plan for the one-year period ended June 30, 2011, based on investment performance, including the impact of fees. This is the seventh consecutive quarter the Plan has earned top-2 honors, and was the number one-ranked plan for five of the six previous quarterly one-year periods.

Matt Schiffman, Head of Global Marketing for Legg Mason, remarked, "For Scholars Choice to be singled out among the top two plans for the seventh straight quarterly one-year period represents a great achievement. Combined with our reputation for low fees, it highlights our dedication to making it easier for families to pay for college."

Joseph Hurley, founder and CEO of Savingforcollege.com, noted, "The need for quality investment options remains paramount, particularly during volatile market periods. Our rankings give financial advisors critical information as they help clients navigate the college savings process."

An independent informational website owned by JFH Innovative LLC, Savingforcollege.com is widely recognized as one of the leading experts on college savings. Scholars Choice is managed by Legg Mason's independent investment firm, Legg Mason Global Asset Allocation, and distributed by Legg Mason Investor Services for the State of Colorado.

Ranking Methodology

The Savingforcollege.com Plan Composite Rankings, which rank Class A Unit portfolio performance for a universe of 36 advisor-sold 529 plans, apply to the rolling one-year period through the end of each calendar quarter.

Savingforcollege.com derives the rankings using each plan's relevant portfolio performance in seven unique asset allocation categories: 100% Equity, 80% Equity, 60% Equity, 40% Equity, 20% Equity, 100% Fixed and 100% Short Term. The plan's composite ranking is determined by the average of its percentile ranking in these categories. Within each category, portfolios are compared and ranked based on published investment returns. Separate rankings are produced for one-, three- and five-year periods. In addition, two versions of rankings for each performance period are produced: one based on performance without sales charges and the other based on performance with maximum sales charges. Please visit www.savingforcollege.com for more information about the ranking.

Additional unit classes may exist for each plan ranked. Please refer to each plan's program disclosure statement for more information regarding its performance, fees and expenses. For Scholars Choice's program disclosure statement, please visit www.scholars-choice.com.

About Legg Mason

Legg Mason is a global asset management firm with $663 billion in assets under management as of June 30, 2011. Through its diversified group of independent investment affiliates, it provides specialized active asset management in major investment centers globally. Legg Mason is headquartered in Baltimore, Maryland, and its common stock is listed on the New York Stock Exchange (symbol: LM).

About Scholars Choice

The Scholars Choice College Savings Program is the advisor-sold College Savings Program for the State of Colorado and is also used by investors and financial advisors throughout the U.S. It is one of the largest advisor-sold 529 college savings plans(1), with assets of over $2.7 billion as of June 30, 2011. Scholars Choice is managed by Legg Mason Global Asset Allocation, LLC and primarily distributed by Legg Mason Investors Services, LLC. It is one of the lowest-cost advisor-sold 529 college savings plans(2).

Scholars Choice offers seven Age-Based Portfolios, five Years-to-Enrollment portfolios, six Static Portfolios and three U.S. Treasury Zero-Coupon Bond Target Maturity Portfolios. Investment options encompass a wide range of carefully constructed portfolios consisting of funds managed by Legg Mason affiliates including Batterymarch Financial Management, Brandywine Global Investment Management, ClearBridge Advisors, Legg Mason Capital Management, Royce & Associates and Western Asset Management; and one unaffiliated fund managed by Thornburg Investment Management.

Important Information

The ranking is based on short-term performance (i.e., rolling one-year period). The performance and ranking discussed are inherently limited and not indicative of longer-term performance. This information should not be the sole basis for any investment decision. Market volatility, interest-rate changes and economic events, among other factors, can affect an investment's short-term returns.