Legg Mason Announces Completion of Exchange Offer for Its Equity Units




    BALTIMORE, Aug. 17 /CNW/ -- Legg Mason, Inc. (NYSE:   LM) announced today
that it completed its offer to exchange up to 21,850,000, or 95%, of its
Equity Units in the form of Corporate Units (the "Units").  The exchange offer
for the units expired at 12:01 a.m., New York City time, on August 12, 2009.

    Of the 23,000,000 Units outstanding prior to the exchange offer,
20,939,212 Units, representing about 91.04 percent of the original issue, were
validly tendered in exchange for 0.8881 of a share of Legg Mason's common
stock and $6.25 in cash per Unit, all of which were accepted for exchange by
Legg Mason.  In accordance with the terms of the offer, Legg Mason exchanged
18,596,054 million shares of its common stock and approximately $131 million
of cash, including cash paid in lieu of fractional shares, for the tendered
Units.

    Mark R. Fetting, Chairman and CEO of Legg Mason, said, "We are very
pleased with the success of the exchange offer.  This transaction meaningfully
strengthens and simplifies our balance sheet and enhances financial
flexibility.  As a result of this transaction, approximately $1 billion of
debt will effectively be converted to shareholder equity (less cash offered in
exchange) and our coverage ratios will significantly improve.  The transaction
will also be accretive to reported earnings per share in fiscal 2010 and 2011,
excluding related transaction expenses."

    Citi acted as lead dealer manager and structuring agent.  BofA Merrill
Lynch and J.P. Morgan acted as co-managers, and MacKenzie Partners, Inc. acted
as the information and exchange agent for the exchange offer.

    This news release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of Legg Mason
common stock in any state or other jurisdiction in which such an offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such state or other jurisdiction.
    

    About Legg Mason
    
    Legg Mason is a global asset management firm, with $657 billion in assets
under management as of June 30, 2009.  The Company provides active asset
management in many major investment centers throughout the world.  Legg Mason
is headquartered in Baltimore, Maryland.  Its common stock and the Corporate
Units are listed on the New York Stock Exchange under the symbols "LM" and
"LMI," respectively.
    



    




For further information:

For further information: Investor Relations, Alan Magleby,
+1-410-454-5246, or Media, Mary Athridge, +1-212-805-6035, both of Legg Mason,
Inc. Web Site: http://www.leggmason.com

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LEGG MASON, INC.

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