Janus Capital Group Announces Fourth Quarter and Year-End 2003 Results

Company Release - 2/4/2004 8:00 AM ET

DENVER--(BUSINESS WIRE)--Feb. 4, 2004--

Improved Fund Performance, Strengthened Balance Sheet and Diversified

Product Line Mark Accomplishments in First Year as a Public Company

Janus Capital Group Inc. (NYSE:JNS) today reported fourth quarter net income of $812.9 million, or $3.52 per diluted share. The fourth quarter 2003 results include the financial impact of the exchange transaction with DST Systems, Inc. (DST) of $807.7 million, a charge of $62.8 million to account for costs related to the investigation into mutual fund trading, a write-down of certain intangible assets of $9.3 million, and an after-tax gain from discontinued operations of $1.7 million.

Janus management analyzes historical results after adjusting for certain items that are not ongoing or are non-operational in nature. The company believes the exclusion of these items is useful to both management and investors as it provides a more comparable basis for the evaluation of Janus' operating results and financial performance over time. See reconciliation of such items on page 6 of this release. Excluding the previously mentioned items, fourth quarter adjusted net income totaled $54.5 million, or $0.23 per diluted share, compared with fourth quarter 2002 net income of $45.1 million, or $0.20 per diluted share. Adjusted operating income increased to $96.0 million during the fourth quarter of 2003 compared with $77.1 million in the fourth quarter of 2002. The increase in adjusted operating and net income resulted from higher average assets under management and flat operating expenses.

For the full year 2003, net income totaled $949.9 million, or $4.14 per diluted share. The 2003 results include a charge of $71.8 million relating to the mutual fund investigation, final restructuring costs and intangible asset write-downs of $11.9 million, an $807.7 million gain from the DST exchange transaction, and an after-tax loss of $5.9 million from discontinued operations. For the full year 2002, net income totaled $84.7 million, or $0.38 per diluted share, which included a charge of $59.4 million relating to the corporate restructuring, a deferred income tax charge relating to DST shares of $107.8 million, and an after-tax loss of $9.8 million from discontinued operations.

Excluding these items, adjusted net income for 2003 totaled $206.6 million, or $0.91 per diluted share, compared with adjusted net income of $239.4 million, or $1.08 per diluted share, for the same period in 2002. Adjusted operating income totaled $328.3 million for the full year 2003, a decrease of $40.1 million from 2002.

"We're encouraged that our assets and revenues stabilized during the last half of 2003 as market conditions and fund performance improved," said Janus CEO Mark Whiston. "We're also pleased that we made significant progress in addressing our 2003 strategic priorities. We streamlined our corporate structure, strengthened our balance sheet and introduced several value and risk-managed products from our subsidiaries and partners.

"Although some of our accomplishments have been overshadowed by regulatory issues," Whiston said, "the fact is we're delivering strong fund performance and taking significant steps to restore Janus' reputation as a firm committed to putting its shareholders first."

    Fourth Quarter 2003 Developments

    Mutual Fund Investigation

On December 19, 2003, the Independent Trustees of the domestic Janus funds and Janus announced the company's intention to make a restoration payment of approximately $31.5 million related to the discretionary frequent trading arrangements, $6.0 million of which was accrued for in the third quarter. The fourth quarter charge of $62.8 million includes the remaining $25.5 million in restoration costs and an additional $37.3 million charge, which includes the company's current estimate of the costs of the regulatory investigations, current period legal fees and shareholder communications. Since Janus has not yet resolved the regulatory investigations, the company cannot state that the above-mentioned charge will be sufficient to cover the ultimate cost. In contrast to the regulatory issues, Janus has not recorded any liability for civil actions because an estimate of this potential contingency cannot be determined.

DST Systems, Inc.

On December 1, 2003, Janus completed the previously announced share exchange with DST. Janus exchanged 32.3 million common shares of DST for Capital Group Partners, a corporation which includes a printing and graphics design business, with a value of $115.0 million and approximately $999.0 million in cash. The share disposition resulted in a $631.3 million book gain and a reversal of previously recorded income taxes of $176.4 million based on opinions of independent tax advisors that the transaction should qualify as a tax-free exchange under Section 355 of the Internal Revenue Code. This treatment remains subject to IRS review. Equity earnings in DST are no longer being recorded and Janus' remaining DST ownership (approximately 9%) is recorded at market value. For the 11 months ended November 30, 2003 (prior to the exchange transaction), equity earnings from DST totaled $64.5 million, or $0.17 per diluted share.

Write-down of Intangible Assets

In the fourth quarter 2003, a write-down of certain intangible assets totaling $9.3 million was recorded, primarily associated with the termination of Bay Isle's subadvised contract with the Undiscovered Managers REIT Fund (which was sold to an unrelated third party), combined with the loss of other smaller institutional accounts.

Financial Results - Fourth Quarter 2003 vs. Fourth Quarter 2002

Fourth quarter 2003 average assets under management were $149.2 billion, compared with $141.5 billion for the comparable quarter in 2002, a 5.4% increase. The increase in average assets under management resulted in a 4.6% increase in asset management-related revenue, from $243.1 million to $254.2 million. Janus' ownership of Capital Group Partners for the month of December generated the remaining $7.2 million of revenue recorded in the current quarter. Operating expenses in the fourth quarter of 2003 (excluding the $62.8 million investigation-related charge and the $9.3 million write-down of intangible assets) remained consistent at $165.4 million from $166.0 million in the fourth quarter 2002 due to the following factors:

    --  Employee compensation and benefits increased $7.3 million, or
        16.0%, principally due to the fourth quarter 2002 reversal of
        approximately $6.0 million of the annual incentive bonus
        accrual. Higher incentive-based compensation during the
        current quarter (from increased average assets under
        management and improved relative fund performance) was almost
        entirely offset by a decline in base salaries as a result of
        headcount reductions from the 2002 corporate restructuring.

    --  Cost of printing and fulfillment of $6.5 million represents
        the total direct operating expenses of Capital Group Partners.

    --  Offsetting these increases in operating expenses were
        reductions in restricted stock compensation ($6.4 million)
        from forfeitures, and lower marketing and distribution
        expenses ($4.3 million).

    Financial Results - 2003 vs. 2002

Average assets under management for 2003 totaled $144.1 billion compared with $162.8 billion for 2002, an 11.5% decrease. As a result, revenue declined 11.4% from $1,123.2 million to $994.7 million. Operating expenses in 2003, excluding charges related to the mutual fund investigation, corporate restructuring and intangible asset impairment, decreased $88.4 million from the same period in 2002. The decline was primarily due to lower employee compensation and benefits from reduced headcount and decreased marketing and distribution expenses due to the decrease in average assets and less firmwide advertising.

In the third quarter 2002, Janus announced a plan to reorganize its operations with the goal of eliminating redundant management teams, investment capabilities and infrastructure. As a result of this plan, Janus recorded a corporate restructuring charge of $59.4 million, which also included certain investment impairments. In the third quarter of 2003, the final estimate of the costs necessary to shut down the Berger and Stilwell offices and receive shareholder approval to merge the Berger Growth Funds with the comparable Janus funds was recorded, resulting in an additional charge of $2.6 million.

2004 Outlook

Janus is anticipating certain events to occur in 2004 that may adversely affect our future earnings and operating margins. The items that we are monitoring closely include the elimination of soft dollar payments for third party products and services, the cost of hiring a Chief Investment Officer and expenses resulting from disclosed amendments to certain employment contracts. We are also expecting increases in compliance-related expenses and incentive-based compensation for portfolio management personnel, given the improving relative fund performance. Management intends to continue aggressively managing its expense base to contain the impact of these increases.

Personnel Changes

Tom Early, Senior Vice President, General Counsel and a member of Janus' Management Committee, has announced his intention to retire. To ensure a smooth transition of his responsibilities, Early is expected to remain as general counsel until at least mid-May 2004. Janus anticipates a charge of approximately $7.6 million, or $0.02 per share, during the first quarter of 2004, reflecting the cost of Early's exercise of contractual rights in connection with his retirement.

"During the past six years, Tom has been a strong member of our management team and we appreciate his significant contributions to Janus," Whiston said.

Fourth-Quarter and 2003 Year-end Results

Janus Capital Group will discuss its results during a conference call February 4 at 11 a.m. Eastern Standard Time. The call-in number will be 877-301-7574. (Anyone outside the U.S. or Canada should call 706-643-3623.) The slides are available in the Investor Relations section of the Janus Capital Group Web site (www.janus.com). For those unable to join the conference call at the scheduled time, a replay will be available on www.janus.com.

About Janus Capital Group Inc.

Based in Denver, Colorado, Janus Capital Group Inc. is a leading asset manager offering individual investors and institutional clients complementary asset management disciplines through the firm's global distribution network. Janus Capital Group consists of Janus Capital Management LLC, Enhanced Investment Technologies, LLC (INTECH), Bay Isle Financial LLC and Capital Group Partners. Janus Capital Group owns 30% of Perkins, Wolf, McDonnell and Company, LLC and approximately 9% of DST Systems, Inc.

This press release includes statements concerning potential future events involving Janus Capital Group Inc. that could differ materially from the events that actually occur. The differences could be caused by a number of factors including those factors identified in Janus' Annual Report on Form 10-K for the year ended December 31, 2002, on file with the Securities and Exchange Commission (Commission file no. 001-15253). Janus will not update any forward-looking statement made in this press release to reflect future events or developments.

Call 1-800-525-3713 or visit janus.com for a prospectus containing more information, including charges, risks and expenses. Read the prospectus carefully before you invest or send money.

Past performance is no guarantee of future results.

JANUS CAPITAL GROUP INC.
                       Non-GAAP Reconciliation
             (dollars in millions, except per share data)

 Janus management analyzes historical results adjusted for certain
 items that are not ongoing or are non-operational in nature.
 Management believes the exclusion of these items is useful to
 investors because it provides a more comparable basis for evaluating
 the operating results and performance of the company.  Internally,
 these adjusted results are used to evaluate the performance of the
 Company.

                                    Three Months Ended
                     -------------------------------------------------
                        December 31, 2003December 31, 2002
                     ------------------------ ------------------------
                    Operating   Net   Diluted Operating  Net   Diluted
                      Income  Income   EPS     Income   Income   EPS
                     -------- ------ ------- ---------  ------ -------
As Reported            $23.9  $812.9   $3.52    $77.1   $45.0   $0.20
Adjustments
 Discontinued
  operations               -    (1.7)  (0.01)       -     0.1       -
 Mutual fund
  investigation         62.8    44.1    0.19        -       -       -
 Restructuring and
  impairments            9.3     6.9    0.03        -       -       -
 Gain on DST
  exchange
  (including income
  taxes)                   -  (807.7)  (3.50)       -       -       -
                     -------- ------- ------- -------- ------- -------
Adjusted               $96.0   $54.5   $0.23    $77.1   $45.1   $0.20
                     ======== ======= ======= ======== ======= =======

                                        Year Ended
                     -------------------------------------------------
                        December 31, 2003December 31, 2002
                     ------------------------ ------------------------
                    Operating   Net    Diluted Operating Net   Diluted
                       Income  Income   EPS    Income   Income   EPS
                     -------- ------- ------- -------- ------- -------
As Reported           $244.6  $949.9   $4.14   $309.0   $84.7   $0.38
Adjustments
 Discontinued
  operations               -     5.9    0.03        -     9.8    0.05
 Mutual fund
  investigation         71.8    49.7    0.21        -       -       -
 Restructuring and
  impairments           11.9     8.8    0.04     59.4    37.1    0.17
 Gain on DST
  exchange
  (including income
  taxes)                      (807.7)  (3.51)       -       -       -
 Deferred income
  taxes for DST            -       -       -        -   107.8    0.48
                     -------- ------- ------- -------- ------- -------
Adjusted              $328.3  $206.6   $0.91   $368.4  $239.4   $1.08
                     ======== ======= ======= ======== ======= =======



                       JANUS CAPITAL GROUP INC.
             UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
             (dollars in millions, except per share data)

                          Three Months Ended          Year Ended
                    ------------------------------------------------
                    December  September  December  December  December
                        31,       30,       31,        31,      31,
                       2003      2003      2002       2003     2002
                     --------- --------- ---------- --------- --------
Revenues:
 Investment
  management fees   $   203.4 $   203.0 $    195.0 $   781.5 $  917.7
 Shareowner
  servicing fees and
  other                  50.8      53.6       48.1     206.0    205.5
 Printing and
  fulfillment             7.2         -          -       7.2        -
                     --------- --------- ---------- --------- --------
Total                   261.4     256.6      243.1     994.7  1,123.2
                     --------- --------- ---------- --------- --------
Operating expenses:
Employee
 compensation and
 benefits                53.0      56.7       45.7     227.3    241.6
Restricted stock
 compensation            18.1      18.6       24.5      78.7     99.2
Marketing and
 distribution            40.1      41.1       44.4     164.7    216.2
Depreciation and
 amortization            16.3      16.5       17.9      67.6     71.0
General,
 administrative and
 occupancy               31.4      31.8       33.5     121.6    126.8
Cost of printing and
 fulfillment              6.5         -          -       6.5        -
Restructuring and
 impairments              9.3       2.6          -      11.9     59.4
Provision for mutual
 fund investigation      62.8       9.0          -      71.8        -
                     --------- --------- ---------- --------- --------
Total                   237.5     176.3      166.0     750.1    814.2
                     --------- --------- ---------- --------- --------
Operating Income         23.9      80.3       77.1     244.6    309.0
Equity in earnings
 of unconsolidated
 affiliates              12.5      19.5       15.0      67.8     69.1
Gain on DST exchange    631.3         -          -     631.3        -
Interest expense        (15.0)    (14.8)     (16.6)    (60.5)   (57.5)
Other, net                4.1       3.1        1.6      11.4      8.7
                     --------- --------- ---------- --------- --------
Income before taxes
 and minority
 interest               656.8      88.1       77.1     894.6    329.3
Income tax provision
 (benefit)             (155.9)     32.1       30.4     (65.4)   231.8
Minority interest in
 consolidated
 earnings                 1.5       1.1        1.6       4.2      3.0
                     --------- --------- ---------- --------- --------
Income from
 continuing
 operations             811.2      54.9       45.1     955.8     94.5
                     --------- --------- ---------- --------- --------
Loss from operations
 of Nelson                  -      (0.1)      (0.1)     (3.7)    (9.8)
Gain (loss) on
 disposal of Nelson       1.7      (3.9)         -      (2.2)       -
                     --------- --------- ---------- --------- --------
Gain (loss) from
 discontinued
 operations               1.7      (4.0)      (0.1)     (5.9)    (9.8)
                     --------- --------- ---------- --------- --------
Net income          $   812.9 $    50.9 $     45.0 $   949.9 $   84.7
                     ========= ========= ========== ========= ========
Basic earnings per
 share
Weighted average
 common shares
 outstanding (in
 millions)              229.3     229.2      222.5     227.8    222.4
Income from
 continuing
 operations         $    3.54 $    0.24 $     0.20 $    4.20 $   0.43
Gain (loss) from
 discontinuing
 operations              0.01     (0.02)         -     (0.03)   (0.05)
                     --------- --------- ---------- --------- --------
Net income          $    3.55 $    0.22 $     0.20 $    4.17 $   0.38
                     --------- --------- ---------- --------- --------
Diluted earnings per
 share
Weighted average
 diluted common
 shares outstanding
 (in millions)          231.0     231.7      223.8     229.5    224.2
Income from
 continuing
 operations         $    3.51 $    0.24 $     0.20 $    4.17 $   0.43
Gain (loss) from
 discontinuing
 operations              0.01     (0.02)         -     (0.03)   (0.05)
                     --------- --------- ---------- --------- --------
Net income          $    3.52 $    0.22 $     0.20 $    4.14 $   0.38
                     --------- --------- ---------- --------- --------



        UNAUDITED CONDENSED CONSOLIDATED CASH FLOW INFORMATION
                        (dollars in millions)

                          Three Months Ended          Year Ended
                      --------------------------- ------------------
                      December  September December December  December
                          31,       30,      31,       31,      31,
Cash provided by         2003      2003     2002      2003      2002
 (used in)            ---------  --------  -------  --------  --------

 Operating
  activities          $   92.0  $  109.6  $  63.3  $  260.2  $  280.7
 Investing
  activities           1,007.9     (30.0)    26.5     837.1     (71.2)
 Financing
  activities              (0.2)    (10.4)   (20.0)    (27.0)   (287.2)
                       --------  --------  -------  --------  --------
Net change during
 period               $1,099.7  $   69.2  $  69.8  $1,070.3  $  (77.7)
                       ========  ========  =======  ========  ========


                       JANUS CAPITAL GROUP INC.
           UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                        (dollars in millions)

                                                  December   December
                                                     31,        31,
                                                    2003       2002
                                                 ---------- ----------
Assets
Cash and cash equivalents                         $1,222.8     $152.5
Other current assets                                 243.4      217.8
Investments and other assets                         386.2      517.5
Property and equipment, net                           58.7       65.7
Intangibles and goodwill, net                      2,421.1    2,368.2
                                                 ---------- ----------
Total Assets                                      $4,332.2   $3,321.7
                                                 ========== ==========

Liabilities and Stockholders' Equity
Debt                                                $852.6     $856.0
Other liabilities                                    254.1      228.6
Deferred income taxes                                564.3      729.1
Stockholders' equity                               2,661.2    1,508.0
                                                 ---------- ----------
Total Liabilities and Stockholders' Equity        $4,332.2   $3,321.7
                                                 ========== ==========


            AVERAGE MANAGED ASSETS BY DISTRIBUTION SEGMENT
                        (dollars in billions)

                                              Three Months Ended
                                         -----------------------------
                                         December  September December
                                            31,       30,       31,
                                           2003      2003      2002
                                          --------  --------  --------
TPA/Adviser-assisted                     $   73.6  $   76.3  $   73.9
Direct no-load                               37.4      37.3      37.7
Offshore/International                        6.0       6.0       4.8
Private/Subadvised                           32.2      29.6      25.1
                                          --------  --------  --------
Total average assets                     $  149.2  $  149.2  $  141.5
                                          ========  ========  ========


                  ASSETS UNDER MANAGEMENT BY MANAGER
                        (dollars in billions)

                                         December  September December
                                            31,       30,       31,
                                           2003      2003      2002
                                          --------  --------  --------
Janus Capital Management LLC             $  128.8  $  128.2  $  125.0
Bay Isle Financial LLC                        1.2       1.2       1.1
Enhanced Investment Technologies, LLC        14.3      11.1       7.3
Perkins, Wolf, McDonnell and Company          7.2       6.0       5.0
                                          --------  --------  --------
Total assets                             $  151.5  $  146.5  $  138.4
                                          ========  ========  ========


                       JANUS CAPITAL GROUP INC.
                 ASSET FLOWS BY INVESTMENT DISCIPLINE
                         (dollars in billions)

                               Three Months Ended      Year Ended
                                  December 31,        December 31,
                               ------------------- -------------------
                                 2003      2002      2003      2002
                               --------- --------- --------- ---------
Growth Equity
Beginning of period assets     $   83.6  $   85.7  $   81.5  $  140.3
  Dispositions                     (1.5)        -      (1.5)        -
  Sales                             2.9       7.2      20.5      33.2
  Redemptions                     (10.0)    (13.0)    (36.8)    (54.2)
                                --------  --------  --------  --------
  Net sales (redemptions)          (7.1)     (5.8)    (16.3)    (21.0)
  Market appreciation
   (depreciation)                   9.9       1.6      21.2     (37.8)
                                --------  --------  --------  --------
End of period assets           $   84.9  $   81.5  $   84.9  $   81.5
                                ========  ========  ========  ========

Mathematical / Quantitative
Beginning of period assets     $   11.1  $    5.8  $    7.3  $      -
  Acquisitions                        -         -         -       6.0
  Sales                             2.0       1.3       5.3       2.7
  Redemptions                      (0.2)     (0.1)     (0.9)     (0.3)
                                --------  --------  --------  --------
  Net sales (redemptions)           1.8       1.2       4.4       2.4
  Market appreciation
   (depreciation)                   1.4       0.3       2.6      (1.1)
                                --------  --------  --------  --------
End of period assets           $   14.3  $    7.3  $   14.3  $    7.3
                                ========  ========  ========  ========

Fixed Income
Beginning of period assets     $    8.0  $    6.0  $    6.8  $    4.4
  Sales                             0.5       1.4       4.8       4.4
  Redemptions                      (1.4)     (1.1)     (5.1)     (3.0)
                                --------  --------  --------  --------
  Net sales (redemptions)          (0.9)      0.3      (0.3)      1.4
  Market appreciation
   (depreciation)                   0.2       0.5       0.8       1.0
                                --------  --------  --------  --------
End of period assets           $    7.3  $    6.8  $    7.3  $    6.8
                                ========  ========  ========  ========

Core / Blend
Beginning of period assets     $   20.5  $   18.4  $   18.9  $   22.4
  Sales                             0.7       1.1       4.2       5.7
  Redemptions                      (2.4)     (1.5)     (6.4)     (6.6)
                                --------  --------  --------  --------
  Net sales (redemptions)          (1.7)     (0.4)     (2.2)     (0.9)
  Market appreciation
   (depreciation)                   2.0       0.9       4.1      (2.6)
                                --------  --------  --------  --------
End of period assets           $   20.8  $   18.9  $   20.8  $   18.9
                                ========  ========  ========  ========

Value
Beginning of period assets     $    7.3  $    6.0  $    6.4  $    6.3
  Sales                             0.8       0.8       2.4       4.5
  Redemptions                      (0.8)     (0.5)     (2.4)     (2.5)
                                --------  --------  --------  --------
  Net sales (redemptions)             -       0.3         -       2.0
  Market appreciation
   (depreciation)                   1.1       0.1       2.0      (1.9)
                                --------  --------  --------  --------
End of period assets           $    8.4  $    6.4  $    8.4  $    6.4
                                ========  ========  ========  ========

Money Market
Beginning of period assets     $   16.0  $   17.9  $   17.5  $   19.1
  Sales                            30.2      60.2     171.3     315.9
  Redemptions                     (30.4)    (60.7)   (173.1)   (318.1)
                                --------  --------  --------  --------
  Net sales (redemptions)          (0.2)     (0.5)     (1.8)     (2.2)
  Market appreciation
   (depreciation)                     -       0.1       0.1       0.6
                                --------  --------  --------  --------
End of period assets           $   15.8  $   17.5  $   15.8  $   17.5
                                ========  ========  ========  ========

Complex-Wide
Beginning of period assets     $  146.5  $  139.8  $  138.4  $  192.5
  Acquisitions                        -         -         -       6.0
  Dispositions                     (1.5)        -      (1.5)        -
  Sales                            37.1      72.0     208.5     366.4
  Redemptions                     (45.2)    (76.9)   (224.7)   (384.7)
                                --------  --------  --------  --------
  Net sales (redemptions)          (8.1)     (4.9)    (16.2)    (18.3)
  Market appreciation
   (depreciation)                  14.6       3.5      30.8     (41.8)
                                --------  --------  --------  --------
End of period assets           $  151.5  $  138.4  $  151.5  $  138.4
                                ========  ========  ========  ========



     AVERAGE ANNUAL TOTAL RETURNS (%)(1) ENDING DECEMBER 31, 2003
                                          ONE    FIVE   TEN    SINCE
Janus Retail Funds                        YEAR  YEARS  YEARS INCEPTION
Growth (Inception Date)
Janus Fund (2/70)                         31.71  (2.47)  8.70   14.40
Janus Enterprise Fund(5) (9/92)           35.82  (2.04)  7.54   10.51
Janus Growth and Income Fund(23)(5/91)    24.65   2.33  12.79   13.83
Janus Mercury Fund(5,13) (5/93)           32.11  (0.03) 12.36   13.46
Janus Olympus Fund(13) (12/95)            31.65   0.15      -   11.78
Janus Orion Fund(5) (6/00)                43.81      -      -  (13.33)
Janus Twenty Fund(2,22 )(4/85)            25.31  (5.56) 10.62   13.16
Janus Venture Fund(2,3,5,13) (4/85)       55.75   5.43  10.04   13.70

International/Global (Inception Date)
Janus Global Life Sciences Fund(4)
 (12/98)                                  27.44   9.39      -    9.39
Janus Global Opportunities Fund(4,5,14,20)
 (6/01)                                   38.41      -      -    9.26
Janus Global Technology Fund(4,5) (12/98) 47.14   1.52      -    1.52
Janus International Equity
 Fund(4,17,18,19) (7/90)                  30.58  (0.43)  3.82    5.44
Janus Overseas Fund(4,21) (5/94)          36.79   3.94      -   10.52
Janus Worldwide Fund(4) (5/91)            24.23  (0.64)  8.90   11.75

Core (Inception Date)
Janus Balanced Fund (9/92)                13.74   4.05  11.09   11.86
Janus Core Equity Fund (6/96)             23.27   2.70      -   12.51
Janus Risk-Managed Stock Fund(4,6,12)
 (2/03)                                       -      -      -   31.67
Janus Special Equity Fund(5,13) (2/00)    53.26      -      -    2.81

Value (Inception Date)
Janus Mid Cap Value Fund - Investor
 Shares(15) (8/98)                        39.33  17.70      -   19.28
Janus Mid Cap Value Fund - Institutional
 Shares(2,15) (8/98)                      39.77  17.81      -   19.38
Janus Small Cap Value Fund - Investor
 Shares(2,16) (10/87)                     36.78  14.98  16.74   14.98
Janus Small Cap Value Fund -
 Institutional Shares(2,16 )(10/87)       37.18  15.32  17.00   15.14
Janus US Value Fund(17,18) (3/90)         24.35   7.72  14.13   13.55

Income (Inception Date)
Janus Federal Tax-Exempt Fund(7,8,9)
 (5/93)                                    3.76   4.04   4.58    5.02
Janus Flexible Income Fund(9,10 )(7/87)    6.37   5.73   7.25    8.27
Janus High-Yield Fund(4,9,10,24) (12/95)  16.04   6.13      -    8.67
Janus Short-Term Bond Fund(7,9) (9/92)     3.91   4.98   5.26    5.22

Money Market (Inception Date)
Janus Money Market Fund(11) (2/95)         0.71   3.32      -    4.16
Janus Government Money Market Fund(11)
 (2/95)                                    0.65   3.24      -    4.07


   (1)All figures unaudited. (2)Closed to new investors. (3)This Fund
has been significantly impacted, either positively or negatively, by
investing in initial public offerings (IPOs). (4)Effective 3/1/04,
this fund's redemption fee, that may be imposed on shares held for 3
months or less, will be changing from 1% to 2% on shares purchased
after that date. (5)Returns have sustained significant gains and
losses due to market volatility in the consumer discretionary sector.
(6)Adviser is currently waiving management fees for the Fund. Without
such waivers total returns would have been lower. (7)Adviser has
agreed to waive a portion of the Fund's expenses. Without such
waivers, Janus Federal Tax-Exempt Fund and Janus Short-Term Bond
Fund's yields would have been 2.91% and 1.94%, respectively and total
returns would have been lower. (8)Income may be subject to state or
local taxes and to a limited extent certain federal tax. Capital gains
are subject to federal, state and local taxes. (9)As of December 31,
2003, 30-day SEC Yield was 3.21% on Janus Federal Tax-Exempt Fund,
3.69% on Janus Flexible Income Fund, 6.44% on Janus High-Yield Fund
and 2.27% on Janus Short-Term Bond Fund. (10)Adviser has agreed to
waive a portion of the Fund's expenses if they exceed the designated
cap. If during the periods shown, the Fund's actual expenses exceeded
the cap, its total return would have been lower. There were no waivers
in effect for the most recent period presented. (11)An investment in
the Fund is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Although the Fund seeks to
preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in the Fund. The yield more
closely reflects the current earnings of the Money Market Fund than
the total return. (12)A fund's performance for very short time periods
may not be indicative of future performance. (13)Returns have
sustained significant gains and losses due to market volatility in the
information technology sector. (14)Effective 12/5/03, Janus Global
Value Fund changed its name to Janus Global Opportunities Fund.
(15)Returns shown for Janus Mid Cap Value Fund prior to 4/21/03 are
those of Berger Mid Cap Value Fund. (16)Returns shown for Janus Small
Cap Value Fund prior to 4/21/03 are those of Berger Small Cap Value
Fund. (17)Returns shown for US Value Fund and International Equity
Fund for periods prior to 10/13/03 are derived from the historical
performance of Class A Shares of Vontobel US Value Fund and Vontobel
International Equity Fund, respectively. Returns are restated to
reflect the higher expected fees and expenses of US Value Fund and
International Equity Fund. Janus Capital has contractually agreed to
waive each Fund's total operating expenses to the levels indicated in
the prospectus until at least September 30, 2005. (18)Vontobel Asset
Management, Inc. is the subadviser to the US Value and International
Equity Funds. (19)Since inception returns reflect Vontobel
International Equity Fund's performance from July 6, 1990, when
Vontobel Asset Management, Inc. became the Fund's investment adviser.
Previous periods during which the Fund was advised by other investment
advisers are not shown. (20)Returns have sustained significant gains
and losses due to market volatility in the industrials sector.
(21)Returns have sustained significant gains and losses due to market
volatility in the financials sector. (22)Returns have sustained
significant gains and losses due to market volatility in the
healthcare sector. (23)Effective 1/1/04, David Corkins is no longer
the portfolio manager of Janus Growth and Income Fund, and Minyoung
Sohn is now the Fund Manager. (24)Effective 12/5/03, Michael Buchanan
is no longer the portfolio manager of Janus High-Yield Fund, and
Gibson Smith is now the Fund Manager.



     AVERAGE ANNUAL TOTAL RETURNS (%)(1) ENDING DECEMBER 31, 2003
                                          ONE    FIVE   TEN      SINCE
Janus Adviser Funds - I Shares           YEAR   YEARS YEARS  INCEPTION

Growth (Inception Date of Predecessor
 Fund)
Capital Appreciation Fund(2) (5/97)     18.92   1.69      -     12.24
Growth Fund(2) (9/93)                   30.18  (1.65)  8.94      8.92
Growth and Income Fund(15) (5/98)       23.94   4.98      -      7.70
Mid Cap Growth Fund(2,5 )(9/93)         34.41  (2.29)  7.70      9.10
Risk-Managed Large Cap Growth
 Fund(2,3,16 )(1/03)                        -      -      -     25.00

International/Global (Inception Date of
 Predecessor Fund)
Foreign Stock Fund(2,4,5,6,16) (5/01)   30.66      -      -      4.56
International Equity Fund(7,8,16)
 (7/90)                                 30.47  (0.57)  3.68      5.31
International Growth Fund(2,9,16)
 (5/94)                                 34.78   4.07      -     10.48
Worldwide Fund(2,16) (9/93)             22.83   0.04   9.85     11.30

Core (Inception Date of Predecessor
 Fund)
Balanced Fund(2) (9/93)                 14.01   4.58  11.34     11.60
Core Equity Fund(2) (5/97)              23.62   2.68      -     12.77
Risk-Managed Core Fund(2,10,16) (1/03)      -      -      -     24.67


Value (Inception Date of Predecessor
 Fund)
Mid Cap Value Fund(2) (12/02)           35.61      -      -     35.61
Small Company Value Fund(2,11,12)
 (3/03)                                 43.20      -      -     12.18
US Value Fund(7) (3/90)                 24.26   7.58  13.98     13.42

Income (Inception Date of Predecessor
 Fund)
Flexible Income Fund(13) (9/93)          6.01   5.94   7.81      7.62

Money Market (Inception Date of
 Predecessor Fund)
Money Market Fund(14) (5/95)             0.44   2.99      -      3.56


   Class I Shares of the Funds (except Foreign Stock, Mid Cap Value,
Small Company Value, Risk-Managed Core, Risk-Managed Growth, US Value
and International Equity Funds) commenced operations on August 1,
2000, after the reorganization of the Retirement Shares of Janus Aspen
Portfolios into the Funds. The returns for the reorganized Funds
reflect the performance of the Retirement Shares of Janus Aspen
Portfolios prior to the reorganization. (The performance of the
Retirement Shares prior to May 1, 1997 reflects the performance of a
different class of Janus Aspen Portfolios, restated to reflect the
fees and expenses of the Retirement Shares on May 1, 1997, ignoring
any fee and expense limitations.)

   (1)All figures unaudited. (2)Janus Capital has contractually
agreed to waive the Fund's total operating expenses to the levels
indicated in the prospectus until at least December 1, 2004. Without
such waivers, yields and total returns would have been lower.
(3)Effective November 28, 2003, Janus Adviser Risk-Managed Large Cap
Growth Fund changed its name to Janus Adviser Risk-Managed Growth Fund
and eliminated its policy to invest at least 80% of its net assets in
large capitalization securities. No change is anticipated in the
fund's day-to-day management as a result of the elimination of this
policy.(4)Effective November 28, 2003, Janus Adviser International
Value Fund changed its name to Janus Adviser Foreign Stock Fund and
adopted a policy to invest at least 80% of its net assets in foreign
stocks, as defined in the prospectus. (5)Returns have sustained
significant gains and losses due to market volatility in the consumer
discretionary sector. (6)Returns have sustained significant gains and
losses due to market volatility in the industrials sector. (7)Returns
shown for US Value Fund and International Equity Fund for periods
prior to October 13, 2003 are derived from the historical performance
of Class A Shares of Vontobel US Value Fund and Vontobel International
Equity Fund, respectively. Returns are restated to reflect the higher
expected fees and expenses of US Value Fund and International Equity
Fund. Janus Capital has contractually agreed to waive the Funds' total
operating expenses by the amounts indicated in the prospectus until at
least September 30, 2005. (8)Since inception returns reflect Vontobel
International Equity Fund's performance from July 6, 1990, when
Vontobel Asset Management, Inc. became the Fund's investment adviser.
Previous periods during which the Fund was advised by other investment
advisers are not shown. (9)Returns have sustained significant gains
and losses due to market volatility in the financials sector.
(10)Effective November 28, 2003, Janus Adviser Risk-Managed Large Cap
Core Fund changed its name to Janus Adviser Risk-Managed Core Fund and
eliminated its policy to invest at least 80% of its net assets in
large capitalization securities. No change is anticipated in the
fund's day-to-day management as a result of the elimination of this
policy. (11)Returns shown for Janus Adviser Small Company Value Fund -
I Shares for periods prior to April 17, 2003 are derived from the
historical performance of Berger Small Cap Value Fund II.
(12)Effective November 28, 2003, Janus Adviser Small Cap Value Fund
changed its name to Janus Adviser Small Company Value Fund. (13)As of
December 31, 2003, 30-day SEC Yield was 3.32% for Flexible Income
Fund. Janus Capital has contractually agreed to waive the Fund's total
operating expenses to the levels indicated in the prospectus until at
least December 1, 2004. Without such waivers, Flexible Income Fund's
yield would have been 3.21%, and total return would have been lower.
(14)An investment in the Fund is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency.
Although the Fund seeks to preserve the value of your investment at
$1.00 per share, it is possible to lose money by investing in the
Fund. The yield more closely reflects the current earnings of the
Money Market Fund than the total return. (15)Effective January 1,
2004, David Corkins is no longer the portfolio manager of Janus
Adviser Growth and Income Fund, and Minyoung Sohn is now the Fund
manager. (16)Effective 3/1/04, this fund's redemption fee, that may be
imposed on shares held for 3 months or less, will be changing from 1%
to 2% on shares purchased after that date.



     AVERAGE ANNUAL TOTAL RETURNS (%)(1) ENDING DECEMBER 31, 2003
                                        ONE    FIVE   TEN    SINCE
Janus Aspen Portfolios                  YEAR   YEARS  YEARS  INCEPTION
 - Institutional Shares

Growth (Portfolio Inception)
Capital Appreciation Portfolio (5/97)   20.54  1.70   -      12.38
Growth Portfolio (9/93)                 31.73  (2.16) 8.99   9.08
Growth and Income Portfolio(2) (5/98)   23.69  4.68   -      7.49
Mid Cap Growth Portfolio(3) (9/93)      35.10  (1.95) 8.17   9.68

International/Global (Portfolio
 Inception)
Global Life Sciences Portfolio (1/00)   26.23  -      -      (8.78)
Global Technology Portfolio(3) (1/00)   46.75  -      -      (22.73)
International Growth Portfolio(4)
 (5/94)                                 34.91  3.38   -      10.59
Worldwide Growth Portfolio (9/93)       23.99  (0.13) 10.07  11.65

Core (Portfolio Inception)
Balanced Portfolio (9/93)               14.05  4.73   11.69  12.09
Core Equity Portfolio (5/97)            23.10  2.94   -      13.13

Value (Portfolio Inception)
Mid Cap Value Portfolio(5) (12/02)      36.14  -      -      36.14

Income (Portfolio Inception)
Flexible Income Portfolio(6) (9/93)     6.39   6.45   8.37   8.19


   (1)All figures unaudited. (2)Effective January 1, 2004, David
Corkins is no longer the portfolio manager of Janus Aspen Growth and
Income Portfolio, and Minyoung Sohn is now the portfolio manager.
(3)Returns have sustained significant gains and losses due to market
volatility in the consumer discretionary sector. (4)Returns have
sustained significant gains and losses due to market volatility in the
financials sector. (5)Returns shown for Janus Aspen Mid Cap Value
Portfolio - Institutional Shares for periods prior to May 1, 2003 are
derived from the historical performance of its Service Shares. (6)As
of December 31, 2003, 30-day SEC Yield was 3.85% for Flexible Income
Portfolio. This material should not be shown or given to a current
policy holder or prospective purchaser. The above returns do not
represent actual returns since they do not include insurance charges.
Incorporation of any of these figures into your printed material must
be reviewed and approved by Janus.

   Due to market volatility, current performance may be higher or
lower than the figures shown. Call 1-800-525-1068 or visit janus.com
for current performance and a prospectus containing more information,
including charges, risks and expenses. Read the prospectus carefully
before you invest or send money. Past performance is no guarantee of
future results and investment results and principal value will
fluctuate so that shares, when redeemed, may be worth more or less
than their original cost. Total return includes reinvestment of
dividends and capital gains. A fund's performance may be affected by
risks that include those associated with non-diversification,
investments in foreign securities, non-investment grade debt
securities, undervalued companies, or companies with a relatively
small market capitalization. Please see a Janus prospectus for more
detailed information. Due to recent market volatility, certain funds
may have an increased position in cash for temporary defensive
purposes. All performance figures shown in this report are net of
management fees. Due to recent market volatility, certain portfolios
may have an increased position in cash for temporary defensive
purposes. A portfolio's performance for very short time periods may
not be indicative of future performance.

   Janus funds are distributed by Janus Distributors LLC. (2/04)
    CONTACT: Janus Capital Group Inc.
             Investor Relations Contact:
             Steve Belgrad, 303-394-7706
             Media Contacts:
             Jane Ingalls, 303-394-7311
             Blair Johnson, 720-210-1439

    SOURCE: Janus Capital Group Inc.