Janus Announces First Quarter 2005 Financial Results

Company Release - 4/20/2005 8:09 AM ET
    DENVER--(BUSINESS WIRE)--April 20, 2005--

    First Quarter GAAP Earnings of $0.09 per Diluted Share or $0.11
                             Adjusted EPS

      Net Flows of Janus-Managed Products Highest Since June 2003

     More than Three-Fourths of Janus-Managed JIF Equity Funds in
        Top Two Lipper Quartiles on a One- and Three-Year Basis

   Significantly Increased Pace of Share Repurchases to $100 Million
                              in Quarter

Janus Capital Group (NYSE:JNS) today reported first quarter GAAP net income of $19.6 million, or $0.09 per diluted share, versus a net loss of $22.1 million, or $0.10 per diluted share, in the first quarter of 2004. To provide a more comparable basis for evaluating Janus' operating results and financial performance over time, Janus management analyzes historical results after adjusting for certain items that are neither ongoing nor operational in nature. (Please refer to the reconciliation of GAAP to adjusted financials on pages 12-13 of this release.) Excluding these items, first quarter 2005 adjusted net income stood at $24.1 million, or $0.11 per diluted share, compared with $41.5 million, or $0.18 per diluted share, in the first quarter of 2004. Investment Management margins on a GAAP and adjusted basis for the first quarter of 2005 were 20.6% and 21.6%, respectively, compared with 1.6% and 33.9%, respectively, in the first quarter of 2004.

Financial Highlights for the Quarter ended March 31, 2005

Average AUM ($Bns)                                 $133.8
Ending AUM ($Bns)                                  $132.2
Long-term net outflows ($Bns)                        $1.9
Long-term net outflows ex-INTECH ($Bns)              $3.9

GAAP Investment Management operating margin          20.6%
Adjusted Investment Management operating margin      21.6%
GAAP Diluted earnings per share ($)                 $0.09
Adjusted Diluted earnings per share                 $0.11
$ (millions) Amount of shares repurchased          $100.0
Common shares repurchased (mms)                       7.0

In reviewing the company's performance, Chairman and CEO Steve Scheid commented: "During a challenging market environment, we're encouraged by the progress we've made stabilizing flows and increasing gross sales. We're investing prudently in our business, particularly in our investment and distribution initiatives, while carefully managing our expenses. We still have work to do, but we're confident in our approach and long-term strategy, which is why we've increased the pace of our stock repurchases."

Flows and Assets Under Management (AUM)

Average assets under management in the first quarter were $133.8 billion versus $134.9 billion in the fourth quarter of 2004 and $148.4 billion in the first quarter 2004. At March 31, 2005, assets under management (AUM) were $132.2 billion compared with $139.0 billion at December 31, 2004, and $145.0 billion at March 31, 2004. The decline in assets between December 2004 and March 2005 reflects long-term net outflows of $1.9 billion, market depreciation of $2.6 billion, and money market net outflows of $2.3 billion during the quarter.

Long-term net outflows of $1.9 billion represented an improvement compared with $2.6 billion of net outflows in the fourth quarter of 2004 and $7.7 billion in the first quarter of 2004. (The fourth quarter 2004 net outflow figure included a previously disclosed $1.8 billion redemption by ING). Long-term net outflows of Janus-branded product (excluding INTECH and the fourth quarter 2004 ING withdrawal) were $3.9 billion for the current quarter compared with $4.7 billion for the prior quarter and $8.2 billion for the comparable quarter a year ago. Approximately 30% of Janus Investment Fund (JIF) equity products generated positive net flows in the first quarter versus 15% posting positive flows in the previous quarter. The main catalyst for improvement in net flows was Janus' growth and blend equity products, which generated $2.2 billion in gross sales during the first quarter, up from $1.5 billion in the fourth quarter.

Results for the first quarter do not reflect the second portion of a previously disclosed redemption by ING that had been expected to occur in March. This redemption will now occur in April and is expected to total approximately $2.2 billion. (A breakdown of flows by discipline can be found on page 15. A history of flows by category is available on www.ir.janus.com.)

    Business Unit Review

    Investment Management

Investment management performance was strong in the first quarter. As of March 31, 2005, approximately 68% of the funds in the company's primary retail fund family, JIF, were in the top half of their Lipper categories on a three-year total return basis. More than 65% of the JIF funds were in the top half of their Lipper categories on a one-year total return basis. Detailed Lipper rankings and performance data for all JIF funds can be found beginning on page 16 of this release.

Key highlights of investment performance as of quarter-end included:

    --  81% and 75% of Janus-managed JIF equity products were in the
        top half of their respective Lipper categories on a one- and
        three-year total return basis, respectively.

    --  Over the past 10 years, 83% of the Janus-managed JIF retail
        funds and 89% of the Janus-managed JIF equity products were in
        the top half of their respective Lipper categories.

"The excellent performance of Janus' equity funds for the one- and three-year periods has positioned us well for a return of growth-style investing," said Janus President and Chief Investment Officer Gary Black. "We're also encouraged by the improved investment performance of our flagship product, Janus Fund, which has produced first and second quartile performance on a one- and three-year Lipper total return basis as of March 31, 2005."

Retail Channel and Marketing

Net outflows of assets in the quarter were $1.2 billion compared with $1.5 billion in the fourth quarter 2004 and $2.0 billion in the first quarter 2004. Assets under management in the Retail Channel were $44.6 billion at March 31, 2005.

In the first quarter of 2005, Janus launched its new TV advertising campaign, highlighting the firm's research-based approach to investing. The company spent a total of $7.6 million on advertising during the first quarter and expects to spend approximately $23 million overall on advertising in 2005.

    Key retail channel highlights for the quarter included:

    --  Strong investment performance and lead generation initiatives
        in the first quarter 2005 generated a 19% increase in gross
        sales from the previous quarter.

    --  Janus launched two new funds -- Janus Research Fund and Janus
        Triton Fund -- in February.

    Global Advisors Channel

Net outflows of assets in the quarter were $2.6 billion compared with net outflows of $2.8 billion in the fourth quarter (excluding ING) and net outflows of $5.5 billion in the first quarter 2004. Assets under management within the Global Advisors channel were $52.6 billion at March 31, 2005. Flows continue to be challenged by slower momentum in the insurance segment of the business, which represents approximately half of the Global Advisors channel assets.

    Key Global Advisors channel highlights for the quarter included:

    --  After four reinstatements in the first quarter, Janus products
        are now available on 23 of the 25 largest retirement
        record-keeping platforms.

    --  Janus separate account products are represented on two of the
        leading separately managed account (SMA) platforms, which
        represent approximately 60% of the SMA market.

    --  Global Advisors won $215 million in international separate
        account mandates, predominantly in Germany and Japan.

    --  Selling agreements are in place with 14 of the 25 largest
        broker dealer networks.

    --  Janus now has 25 domestic wholesalers in the field, up from 16
        wholesalers in the first quarter of 2004.

    Institutional Channel

Net inflows of long-term assets in the quarter were $1.9 billion compared with $3.4 billion in the fourth quarter and long-term net outflows of $0.5 billion in the first quarter 2004. Assets under management in the Institutional Channel were $35.0 billion at March 31, 2005, with $28.4 billion in Separate Account assets and $6.6 billion in Institutional Money Market assets.

    Key highlights for the quarter included:

    --  INTECH growth of $2.2 billion to $28 billion in assets.

    --  Hired a director of consultant relations and expanded Janus'
        institutional sales force.
Financial Discussion - First Quarter 2005 vs. First Quarter 2004

Financial Highlights
(dollars in millions, except per share data)

                               GAAP Results        Adjusted Results
                            Three Months Ended    Three Months Ended
                            -------------------   -------------------
                            March 31,  March 31,  March 31,  March 31,
                              2005       2004       2005       2004
                            ---------  ---------  ---------  ---------
Investment Management
 Segment

Average Assets               $133.8     $148.4     $133.8     $148.4
Revenues                     $216.0     $249.9     $216.0     $249.9
Operating Expenses            171.6      245.9      169.4      165.1
Operating Income               44.4        4.0       46.6       84.8
Operating Margin               20.6%       1.6%      21.6%      33.9%

Consolidated Net income
 (loss)                        19.6      (22.1)      24.1       41.5
Diluted earnings (loss) per
 share                        $0.09     $(0.10)     $0.11      $0.18
Consolidated operating
 margin                        17.3%       0.5%      18.2%      30.0%

Adjusted Investment Management Segment

Revenue declined $33.9 million from $249.9 million in the first quarter of 2004 to $216.0 million in the first quarter of 2005. The 13.6% revenue decrease is consistent with the 9.8% decrease in average assets under management combined with approximately $5 million of management fee reductions that occurred as part of Janus' settlement with regulators, effective July 1, 2004. The decline in management fee revenue was partially offset by a $6.4 million increase in INTECH performance fees to $7.2 million.

Adjusted operating expenses increased $4.3 million, principally due to increases in employee compensation and marketing offset by decreases in distribution and depreciation expenses. The increase in employee compensation was due in part to incentive compensation directly linked to improved relative investment performance. The $5.6 million increase in total marketing expenditures was due to the TV and print advertising campaigns that occurred in the first quarter of 2005, as well as the launch of two new retail funds. In the first quarter of 2004 there was no advertising spending. Distribution expense declined due to a decrease in assets on which distribution fees are paid. Depreciation and Amortization declined 27.1% from $14.0 million in the first quarter of 2004 to $10.2 million in the current quarter due to lower levels of capital investment in recent years. General and Administrative expenses were generally flat year over year.

Interest expense declined over the same quarter one year ago due to lower interest payments as a result of approximately $474 million of debt retirement during the second quarter 2004. Other income increased from the beneficial impact of rising interest rates on Janus' cash balances and investments.

Printing and Fulfillment Segment

Results in the company's Printing and Fulfillment business, Rapid Solutions Group, were comparable to the same quarter one year ago, reflecting the first quarter seasonal increases from the printing of year-end statements for financial services firms. From the fourth quarter of 2004 to the first quarter of 2005, the adjusted operating loss improved from $6.1 million to $3.1 million, primarily as a result of significant reductions in operating expenses.

Capital and Liquidity

At March 31, 2005, the company had stockholders' equity of $2.7 billion, cash and investments of $876 million and $377 million of debt outstanding. As part of the company's active management of its capital and liquidity position, Janus repurchased $100 million of its common shares in the first quarter (7.0 million shares) at an average price of $14.25 per share. Since July 2004, when the current $500 million share repurchase plan was authorized by the Board of Directors, Janus has repurchased $184 million (or 12.6 million shares) in the public markets at an average price of $14.55.

2005 Earnings Update

In its year-end earnings presentation on January 26, 2005, (available on www.janus.com in the investor relations tab), the company provided earnings guidance for full year 2005 of $0.55-$0.60 of Adjusted EPS. This guidance assumed 6% equity market appreciation in 2005 based on ending 2004 AUM of $139 billion, and company long-term net flows of $0-$5 billion. If current market conditions continue, the guidance range previously provided will not be achieved.

First Quarter 2005 Earnings Call Information

Janus Capital Group will discuss its results during a conference call Wednesday, April 20, at 10:00 a.m. Eastern Daylight Time. The call-in number will be 877-301-7574 (anyone outside the U.S. or Canada should call 706-643-3623). The slides used during the presentation will be available in the investor relations section of the Janus Capital Group Web site (www.janus.com) approximately one hour prior to the call. For those unable to join the conference call at the scheduled time, an audio 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), and Capital Group Partners, Inc. In addition, Janus Capital Group owns 30% of Perkins, Wolf, McDonnell and Company, LLC.

Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus containing this and other information, please call Janus at 800-525-3713 or download the file from www.janus.com. Read it carefully before you invest or send money.

Data presented reflects past performance, which is no guarantee of future results.

Funds distributed by Janus Distributors LLC (4/05).

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, 2004, on file with the Securities and Exchange Commission (Commission file no. 001-15253). Many of these factors are beyond the control of the Company and its management. Any forward-looking statements contained in this release are as of the date on which such statements were made. The Company assumes no duty to update them, even if experience, unexpected events, or future changes make it clear that any projected results expressed or implied therein will not be realized.

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

                                        Three Months Ended
                            ------------------------------------------
                            March   December September  JuneMarch
                              31,      31,      30,      30,     31,
                             2005     2004     2004     2004    2004
                            ------- -------- --------- ------- -------
Investment Management
 Revenues:
Investment management fees  $173.1   $176.5    $170.2  $187.9  $199.2
Shareowner servicing fees
 and other                    42.9     45.0      45.0    47.3    50.7
                            ------- -------- --------- ------- -------
Total                        216.0    221.5     215.2   235.2   249.9
                            ------- -------- --------- ------- -------

Investment Management
 Operating Expenses:
Employee compensation and
 benefits                     71.3     61.4      56.7    70.7    60.5
Long-term incentive
 compensation                 19.0     37.1      22.0    25.4    26.0
Marketing and fulfillment      9.7      9.2       6.5     8.8     4.1
Distribution                  27.1     29.5      29.2    31.6    34.8
Depreciation and
 amortization                 10.2     11.1      11.5    12.3    14.0
General, administrative and
 occupancy                    32.1     39.1      31.8    35.2    33.3
Restructuring and
 impairments                   5.5        -      10.2       -    14.2
Provision for mutual fund
 investigation                (3.3)       -         -     6.0    59.0
                            ------- -------- --------- ------- -------
Total                        171.6    187.4     167.9   190.0   245.9
                            ------- -------- --------- ------- -------

Investment Management
 Operating Income             44.4     34.1      47.3    45.2     4.0

Printing and Fulfillment
 Revenue                      23.0     18.3      22.6    23.6    24.5
Printing and Fulfillment
 Operating Expenses           24.2     24.7      25.0    25.3    25.1
Printing and Fulfillment
 Intangibles Amortization      1.9      1.9       1.9     1.9     1.9
                            ------- -------- --------- ------- -------
Printing and Fulfillment
 Operating Loss               (3.1)    (8.3)     (4.3)   (3.6)   (2.5)

Interest expense              (7.2)    (7.2)     (4.8)  (11.6)  (14.8)
Gain on disposition of DST
 common shares                   -        -         -   228.0       -
Loss on early
 extinguishment of debt          -        -         -   (55.5)      -
Other, net                     9.3      8.6       4.9     2.9     3.2
Income tax provision
 benefit (provision)         (21.4)    (7.7)      5.5   (78.7)  (11.3)
Equity in earnings of
 unconsolidated affiliates     1.7      1.8       1.6     1.6     1.1
Minority interest in
 consolidated earnings        (4.1)    (3.1)     (2.9)   (2.2)   (1.8)
                            ------- -------- --------- ------- -------

Net Income (Loss)            $19.6    $18.2     $47.3  $126.1  $(22.1)
                            ======= ======== ========= ======= =======

----------------------------------------------------------------------
Basic earnings per share
Weighted average common
 shares outstanding (in
 millions)                   226.0    228.7     231.8   232.2   230.4
Basic earnings (loss) per
 share                       $0.09    $0.08     $0.20   $0.54  $(0.10)

Diluted earnings per share
Weighted average diluted
 common shares outstanding
 (in millions)               227.1    229.9     233.0   234.0   230.4
Diluted earnings (loss) per
 share                       $0.09    $0.08     $0.20   $0.54  $(0.10)
----------------------------------------------------------------------
JANUS CAPITAL GROUP INC.
             UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
                            ADJUSTED BASIS
             (dollars in millions, except per share data)

                                        Three Months Ended
                            ------------------------------------------
                            March   December September  JuneMarch
                              31,      31,      30,      30,     31,
                             2005     2004     2004     2004    2004
                            ------- -------- --------- ------- -------
Investment Management
 Revenues:
Investment management fees  $173.1   $176.5    $170.2  $187.9  $199.2
Shareowner servicing fees
 and other                    42.9     45.0      45.0    47.3    50.7
                            ------- -------- --------- ------- -------
Total                        216.0    221.5     215.2   235.2   249.9
                            ------- -------- --------- ------- -------

Investment Management
 Operating Expenses:
Employee compensation and
 benefits                     71.3     61.4      54.1    52.5    56.5
Long-term incentive
 compensation                 19.0     22.1      22.0    22.0    22.4
Marketing and fulfillment      9.7      9.2       6.5     8.8     4.1
Distribution                  27.1     29.5      29.2    31.6    34.8
Depreciation and
 amortization                 10.2     11.1      11.5    12.3    14.0
General, administrative and
 occupancy                    32.1     39.1      31.8    35.2    33.3
                            ------- -------- --------- ------- -------
Total                        169.4    172.4     155.1   162.4   165.1
                            ------- -------- --------- ------- -------

Investment Management
 Operating Income             46.6     49.1      60.1    72.8    84.8

Printing and Fulfillment
 Revenue                      23.0     18.3      22.6    23.6    24.5
Printing and Fulfillment
 Operating Expenses           24.2     22.5      25.0    25.3    25.1
Printing and Fulfillment
 Intangibles Amortization      1.9      1.9       1.9     1.9     1.9
                            ------- -------- --------- ------- -------
Printing and Fulfillment
 Operating Loss               (3.1)    (6.1)     (4.3)   (3.6)   (2.5)

Interest expense              (7.2)    (7.2)     (7.3)  (11.6)  (14.8)
Other, net                     5.2      8.6       4.9     2.9     3.2
Income tax provision         (15.0)   (14.3)    (21.8)  (23.5)  (28.5)
Equity in earnings of
 unconsolidated affiliates     1.7      1.8       1.6     1.6     1.1
Minority interest in
 consolidated earnings        (4.1)    (3.1)     (2.9)   (2.2)   (1.8)
                            ------- -------- --------- ------- -------

Net Income                   $24.1    $28.8     $30.3   $36.4   $41.5
                            ======= ======== ========= ======= =======

----------------------------------------------------------------------
Basic earnings per share
Weighted average common
 shares outstanding (in
 millions)                   226.0    228.7     231.8   232.2   230.4
Basic earnings per share     $0.11    $0.13     $0.13   $0.16   $0.18

Diluted earnings per share
Weighted average diluted
 common shares outstanding
 (in millions)               227.1    229.9     233.0   234.0   232.4
Diluted earnings per share   $0.11    $0.13     $0.13   $0.16   $0.18
----------------------------------------------------------------------
JANUS CAPITAL GROUP INC.
                       Non-GAAP Reconciliations
             (dollars in millions, except per share data)

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


                           Three Months Ended March 31, 2005
                 -----------------------------------------------------
                             Non-
                             GAAP      Investment  Printing
                 Investment Adjust-    Management     and     Adjusted
                 Management  ments      Adjusted  Fulfillment  Total
                 ---------- -------    ---------- ----------- --------
Revenues            $216.0      $-        $216.0       $23.0   $239.0

Operating
 expenses            169.4       -         169.4        26.1    195.5
Restructuring
 and impairments       5.5    (5.5)(1)         -           -        -
Provision for
 mutual fund
 investigation        (3.3)    3.3 (2)         -           -        -
                 ---------- -------    ---------- ----------- --------
    Total            171.6    (2.2)        169.4        26.1    195.5
                 ---------- -------    ---------- ----------- --------

Operating Income
 (Loss)               44.4     2.2          46.6        (3.1)    43.5
Operating Margin      20.6%                 21.6%      -13.5%    18.2%

Interest expense      (7.2)      -          (7.2)          -     (7.2)
Other income
 (expense)             9.0    (4.1)(3)       4.9         0.3      5.2
Income tax
 benefit
 (provision)         (22.4)    6.4 (4)     (16.0)        1.0    (15.0)
Equity earnings
 in
 unconsolidated
 affiliates            1.7       -           1.7           -      1.7
Minority
 interest in
 consolidated
 earnings             (4.1)      -          (4.1)          -     (4.1)
                 ---------- -------    ---------- ----------- --------
Net Income
 (Loss)              $21.4    $4.5         $25.9       $(1.8)   $24.1
                 ========== =======    ========== =========== ========

Diluted Earnings
 (Loss) per
 Share               $0.09   $0.02         $0.11      $(0.01)   $0.11

Average Assets
 Under
 Management
 (Billions)         $133.8

                             Three Months Ended December 31, 2004
                         ---------------------------------------------
                                                Investment  Printing
                         Investment  Non-GAAP   Management     and
                         Management Adjustments  Adjusted  Fulfillment
                         ---------- ----------- ---------- -----------
Revenues                    $221.5       $-        $221.5       $18.3

Operating expenses           150.3        -         150.3        24.4
Long-term incentive
 compensation                 37.1    (15.0)(5)      22.1           -
Restructuring and
 impairments                     -        -             -         2.2
                         ---------- --------    ---------- -----------
    Total                    187.4    (15.0)        172.4        26.6
                         ---------- --------    ---------- -----------

Operating Income (Loss)       34.1     15.0          49.1        (8.3)
Operating Margin              15.4%                  22.2%      -45.4%

Other income (expense)           -        -             -         0.1
Income tax benefit
 (provision)                 (11.1)    (5.7)(4)     (16.8)        3.4
                         ---------- --------    ---------- -----------
Net Income (Loss)            $23.0     $9.3         $32.3       $(4.8)
                         ========== ========    ========== ===========

Diluted Earnings (Loss)
 per Share                   $0.10    $0.04         $0.14      $(0.02)

Average Assets Under
 Management (Billions)      $134.9

                                  Three Months Ended December 31, 2004
                                  ------------------------------------
                                                 Printing and
                                     Non-GAAP     Fulfillment Adjusted
                                   Adjustments     Adjusted    Total
                                  -------------- ------------ --------
Revenues                                 $-            $18.3   $239.8

Operating expenses                        -             24.4    174.7
Long-term incentive compensation          -                -     22.1
Restructuring and impairments          (2.2)(12)           -        -
                                  ----------     ------------ --------
    Total                              (2.2)            24.4    196.8
                                  ----------     ------------ --------

Operating Income (Loss)                 2.2             (6.1)    43.0
Operating Margin                                       -33.3%    17.9%

Other income (expense)                    -              0.1      0.1
Income tax benefit (provision)         (0.9)             2.5    (14.3)
                                  ----------     ------------ --------
Net Income (Loss)                      $1.3            $(3.5)   $28.8
                                  ==========     ============ ========

Diluted Earnings (Loss) per Share     $0.01           $(0.01)   $0.13

Average Assets Under Management
 (Billions)

                         Three Months Ended September 30, 2004
                 -----------------------------------------------------
                             Non-
                             GAAP      Investment  Printing
                 Investment Adjust-    Management     and     Adjusted
                 Management  ments      Adjusted  Fulfillment  Total
                 ---------- -------    ---------- ----------- --------
Revenues            $215.2      $-        $215.2       $22.6   $237.8

Operating
 expenses            101.0       -         101.0        26.9    127.9
Employee
 compensation and
 benefits             56.7    (2.6)(6)      54.1           -     54.1
Restructuring and
 impairments          10.2   (10.2)(7)         -           -        -
                 ---------- -------    ---------- ----------- --------
    Total            167.9   (12.8)        155.1        26.9    182.0
                 ---------- -------    ---------- ----------- --------

Operating Income
 (Loss)               47.3    12.8          60.1        (4.3)    55.8
Operating Margin      22.0%                 27.9%      -19.0%    23.5%

Interest expense      (4.8)   (2.5)(4)      (7.3)          -     (7.3)
Other income
 (expense)             4.7       -           4.7         0.2      4.9
Income tax
 benefit
 (provision)           3.8   (27.3)(4)     (23.5)        1.7    (21.8)
Equity earnings
 in
 unconsolidated
 affiliates            1.6       -           1.6           -      1.6
Minority interest
 in consolidated
 earnings             (2.9)      -          (2.9)          -     (2.9)
                 ---------- -------    ---------- ----------- --------
Net Income (Loss)    $49.7  $(17.0)        $32.7       $(2.4)   $30.3
                 ========== =======    ========== =========== ========

Diluted Earnings
 (Loss) per Share    $0.21  $(0.07)        $0.14      $(0.01)   $0.13

Average Assets
 Under Management
 (Billions)         $129.2
JANUS CAPITAL GROUP INC.
                 Non-GAAP Reconciliations (continued)
             (dollars in millions, except per share data)

                           Three Months Ended June 30, 2004
                ------------------------------------------------------
                            Non-
                            GAAP       Investment  Printing
                Investment Adjust-     Management     and     Adjusted
                Management  ments       Adjusted  Fulfillment  Total
                ---------- -------     ---------- ----------- --------
Revenues           $235.2      $-         $235.2       $23.6   $258.8

Operating
 expenses            94.5       -           94.5        25.4    119.9
Employee
 compensation
 and benefits        70.7   (18.2)(6)       52.5         1.8     54.3
Long-term
 incentive
 compensation        18.8    (3.4)(6)       15.4           -     15.4
Provision for
 mutual fund
 investigation        6.0    (6.0)(8)          -           -        -
                ---------- -------     ---------- ----------- --------
        Total       190.0   (27.6)         162.4        27.2    189.6
                ---------- -------     ---------- ----------- --------

Operating
 Income (Loss)       45.2    27.6           72.8        (3.6)    69.2
Operating
 Margin              19.2%                  31.0%      -15.3%    26.7%

Interest
 expense            (11.6)      -          (11.6)          -    (11.6)
Gain on the
 disposal of
 DST common
 shares             228.0  (228.0) (9)         -           -        -
Loss on early
 extinguish-
ment of debt        (55.5)   55.5 (10)         -           -        -
Other income
 (expense)            2.5       -            2.5         0.4      2.9
Income tax
 benefit
 (provision)        (79.7)   55.2  (4)     (24.5)        1.0    (23.5)
Equity earnings
 in
 unconsolidated
 affiliates           1.6       -            1.6           -      1.6
Minority
 interest in
 consolidated
 earnings            (2.2)      -           (2.2)          -     (2.2)
                ---------- -------     ---------- ----------- --------
Net Income
 (Loss)            $128.3  $(89.7)         $38.6       $(2.2)   $36.4
                ========== =======     ========== =========== ========

Diluted
 Earnings
 (Loss) per
 Share              $0.55  $(0.38)         $0.16      $(0.01)   $0.16

Average Assets
 Under
 Management
 (Billions)        $138.6

                          Three Months Ended March 31, 2004
                ------------------------------------------------------
                            Non-
                            GAAP       Investment  Printing
                Investment Adjust-     Management     and     Adjusted
                Management  ments       Adjusted  Fulfillment  Total
                ---------- -------     ---------- ----------- --------
Revenues           $249.9      $-         $249.9       $24.5   $274.4

Operating
 expenses            86.2       -           86.2        25.4    111.6
Employee
 compensation
 and benefits        60.5    (4.0) (6)      56.5         1.6     58.1
Long-term
 incentive
 compensation        26.0    (3.6) (6)      22.4           -     22.4
Restructuring
 and
 impairments         14.2   (14.2)(11)         -           -        -
Provision for
 mutual fund
 investigation       59.0   (59.0) (8)         -           -        -
                ---------- -------     ---------- ----------- --------
         Total      245.9   (80.8)         165.1        27.0    192.1
                ---------- -------     ---------- ----------- --------

Operating
 Income (Loss)        4.0    80.8           84.8        (2.5)    82.3
Operating
 Margin               1.6%                  33.9%      -10.2%    30.0%

Other income
 (expense)          (12.3)      -          (12.3)          -    (12.3)
Income tax
 provision
 (expense)          (12.4)  (17.2) (4)     (29.6)        1.1    (28.5)
                ---------- -------     ---------- ----------- --------
Net Income
 (Loss)            $(20.7)  $63.6          $42.9       $(1.4)   $41.5
                ========== =======     ========== =========== ========

Diluted
 Earnings
 (Loss) per
 Share             $(0.09)  $0.27          $0.18      $(0.01)   $0.18

Average Assets
 Under
 Management
 (Billions)        $148.4

(1) Charges related to the closure of the Bay Isle Financial LLC
    facility in Oakland, California, severance of a Bay Isle portfolio
    manager and impairment of intangibles associated with the loss of
    institutional accounts.

(2) Insurance recovery of $6.0 million for legal expenses incurred
    related to the mutual fund investigation, net of first quarter
    2005 legal fees and other expenses.

(3) Realized gain on the sale of investments. In the first quarter of
    2005, the Company reduced its seed capital investments in advised
    funds by $22.8 million. This reduction in seed capital produced
    gains of $2.5 million on an after-tax basis.

(4) Includes tax effect of adjustments. Also, on March 31, 2005, 1.3
    million shares of Janus common stock granted in 2002 vested at a
    price significantly below the grant price of approximately $26 per
    share. This vesting resulted in a permanent book-tax difference,
    which directly increased income tax expense. 3Q04 includes the
    reversal of a $22.5 million tax contingency and related accrued
    interest of $2.5 million.

(5) Equity awards granted on a vested basis in 2004.

(6) Charges related to severance payments and the accelerated vesting
    of restricted stock as a result of executive level departures
    including Janus' former CEO during 2Q04.

(7) Charge of $8.2 million related to the closure of Janus' Austin,
    Texas, facility in 2001 and the pretax loss of $2.0 million from
    the sale of Bay Isle Financial LLC's Private Client Asset
    Management Division.

(8) Charges related to the mutual fund investigation, including civil
    penalties, restoration, legal and other administrative costs.

(9) Pretax gain of $228.0 million from the sale of 7.4 million shares
    of DST to an unrelated third party.

(10) Loss of $55.5 million primarily related to the premium paid to
    exchange old for new notes with lower interest rates.

(11) An impairment charge of $14.2 million was recorded associated
    with the termination notices received in the first quarter of 2004
    from certain subadvised accounts.

(12) Charges related to the closure of a non-strategic facility.
JANUS CAPITAL GROUP INC.
           UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                        (dollars in millions)

                                              March 31,   December 31,
                                                 2005         2004
                                             ------------ ------------
Assets
Cash and cash equivalents                         $454.8       $527.1
Other current assets                               405.3        538.2
Investments and other assets                       324.0        240.9
Property and equipment, net                         58.8         62.0
Intangibles and goodwill, net                    2,392.0      2,399.4
                                             ------------ ------------
Total Assets                                    $3,634.9     $3,767.6
                                             ============ ============

Liabilities and Stockholders' Equity
Debt                                              $377.2       $377.5
Other liabilities                                  198.7        219.8
Deferred income taxes                              405.0        435.8
Stockholders' equity                             2,654.0      2,734.5
                                             ------------ ------------
Total Liabilities and Stockholders' Equity      $3,634.9     $3,767.6
                                             ============ ============
                   UNAUDITED CONDENSED CONSOLIDATED
                        CASH FLOW INFORMATION
                        (dollars in millions)

                                         Three Months Ended
                               ---------------------------------------
                                 March 31,   December 31,  March 31,
 Cash provided by (used in)        2005         2004         2004
                               ------------- ------------ ------------
  Operating activities                $43.8        $44.3        $78.3
  Investing activities                 (5.8)      (327.9)       (20.7)
  Financing activities               (110.3)       (45.4)        (1.9)
                               ------------- ------------ ------------
 Net change during period            $(72.3)     $(329.0)       $55.7
                               ============= ============ ============
                  ASSETS UNDER MANAGEMENT BY MANAGER
                        (dollars in billions)

                                             Three Months Ended
                                      --------------------------------
                                      March 31, December 31, March 31,
                                        2005       2004        2004
                                      --------- ------------ ---------
 Janus Capital Management LLC            $94.6       $103.2    $120.4
 Bay Isle Financial LLC                      -          0.5       1.2
 Enhanced Investment Technologies,
  LLC                                     28.0         25.8      15.5
 Perkins, Wolf, McDonnell and Company      9.6          9.5       7.9
                                      --------- ------------ ---------
        Total assets                    $132.2       $139.0    $145.0
                                      ========= ============ =========
JANUS CAPITAL GROUP INC.
               ASSETS & FLOWS BY INVESTMENT DISCIPLINE
                        (dollars in billions)

                                        Three Months Ended
                            ------------------------------------------
                            March    June   September DecemberMarch
                              31,     30,      30,      31,      31,
                              2004    2004    2004      2004     2005
                            ------- ------- --------- -------- -------
Growth / Blend
   Beginning of period
    assets                   $83.1   $78.9     $74.3    $68.2   $71.4
   Sales                       2.4     1.8       1.1      1.5     2.2
   Redemptions                (8.1)   (8.1)     (4.4)    (6.1)   (4.8)
                            ------- ------- --------- -------- -------
   Net Sales (redemptions)    (5.7)   (6.3)     (3.3)    (4.6)   (2.6)
   Market appreciation         1.6     1.6      (2.8)     7.8    (2.5)
                            ------- ------- --------- -------- -------
   End of period assets      $78.9   $74.3     $68.2    $71.4   $66.3
                            ======= ======= ========= ======== =======

Global / International
   Beginning of period
    assets                   $22.6   $21.7     $16.9    $15.1   $14.6
   Sales                       0.8     0.5       0.3      0.3     0.4
   Redemptions                (2.9)   (3.4)     (1.9)    (2.5)   (1.5)
                            ------- ------- --------- -------- -------
   Net Sales (redemptions)    (2.1)   (2.9)     (1.6)    (2.2)   (1.2)
   Market appreciation         1.2    (1.8)     (0.2)     1.8    (0.1)
                            ------- ------- --------- -------- -------
   End of period assets      $21.7   $16.9     $15.1    $14.6   $13.4
                            ======= ======= ========= ======== =======

Mathematical/Quantitative
   Beginning of period
    assets                   $14.3   $15.5     $17.5    $20.1   $25.8
   Sales                       1.3     2.0       3.0      4.1     2.4
   Redemptions                (0.8)   (0.6)     (0.2)    (0.2)   (0.4)
                            ------- ------- --------- -------- -------
   Net Sales (redemptions)     0.5     1.4       2.8      3.9     2.0
   Market appreciation         0.7     0.6      (0.1)     1.8     0.2
                            ------- ------- --------- -------- -------
   End of period assets      $15.5   $17.5     $20.1    $25.8   $28.0
                            ======= ======= ========= ======== =======

Value
   Beginning of period
    assets                    $8.5    $9.2      $9.6     $9.1   $10.2
   Acquisitions
    (dispositions)               -       -      (0.6)       -       -
   Sales                       1.1     0.9       0.8      1.0     1.0
   Redemptions                (0.9)   (0.6)     (0.6)    (0.8)   (1.0)
                            ------- ------- --------- -------- -------
   Net Sales (redemptions)     0.2     0.3       0.2      0.2       -
   Market appreciation         0.4     0.1         -      0.8    (0.1)
                            ------- ------- --------- -------- -------
   End of period assets       $9.2    $9.6      $9.1    $10.2   $10.2
                            ======= ======= ========= ======== =======

Fixed Income
   Beginning of period
    assets                    $7.3    $6.7      $6.0     $5.8    $6.2
   Sales                       0.6     0.3       0.3      0.6     0.4
   Redemptions                (1.0)   (0.8)     (0.6)    (0.5)   (0.5)
                            ------- ------- --------- -------- -------
   Net Sales (redemptions)    (0.4)   (0.5)     (0.3)     0.1    (0.2)
   Market appreciation        (0.2)   (0.2)      0.2      0.2    (0.1)
                            ------- ------- --------- -------- -------
   End of period assets       $6.7    $6.0      $5.8     $6.2    $5.9
                            ======= ======= ========= ======== =======

Money Market
   Beginning of period
    assets                   $15.8   $13.0     $11.1    $11.8   $10.8
   Sales                      26.2    21.5      20.0     19.5    12.3
   Redemptions               (29.0)  (23.4)    (19.4)   (20.5)  (14.6)
                            ------- ------- --------- -------- -------
   Net Sales (redemptions)    (2.8)   (1.9)      0.6     (1.0)   (2.3)
   Market appreciation           -       -         -        -       -
                            ------- ------- --------- -------- -------
   End of period assets      $13.0   $11.1     $11.8    $10.8    $8.5
                            ======= ======= ========= ======== =======

Total
   Beginning of period
    assets                  $151.5  $145.0    $135.4   $130.2  $139.0
   Acquisitions
    (dispositions)               -       -      (0.6)       -       -
   Sales                      32.4    27.1      25.5     27.1    18.6
   Redemptions               (42.9)  (37.0)    (27.1)   (30.6)  (22.8)
                            ------- ------- --------- -------- -------
   Net Sales (redemptions)   (10.5)   (9.9)     (1.6)    (3.5)   (4.2)
   Market appreciation         4.0     0.3      (3.0)    12.3    (2.6)
                            ------- ------- --------- -------- -------
   End of period assets     $145.0  $135.4    $130.2   $139.0  $132.2
                            ======= ======= ========= ======== =======

Total Excluding Money
 Markets
   Beginning of period
    assets                  $135.7  $132.0    $124.3   $118.4  $128.2
   Acquisitions
    (dispositions)               -       -      (0.6)       -       -
   Sales                       6.2     5.6       5.5      7.5     6.3
   Redemptions               (13.9)  (13.6)     (7.7)   (10.1)   (8.2)
                            ------- ------- --------- -------- -------
   Net Sales (redemptions)    (7.7)   (8.0)     (2.2)    (2.6)   (1.9)
   Market appreciation         4.0     0.3      (3.0)    12.4    (2.6)
                            ------- ------- --------- -------- -------
   End of period assets     $132.0  $124.3    $118.4   $128.2  $123.7
                            ======= ======= ========= ======== =======


Total Excluding Mathematical/Quantitative & Money Markets
   Beginning of period
    assets                  $121.4  $116.5    $106.8    $98.3  $102.4
   Acquisitions
    (dispositions)               -       -      (0.6)       -       -
   Sales                       4.9     3.6       2.5      3.4     3.9
   Redemptions               (13.1)  (13.0)     (7.5)    (9.9)   (7.8)
                            ------- ------- --------- -------- -------
   Net Sales (redemptions)    (8.2)   (9.4)     (5.0)    (6.5)   (3.9)
   Market appreciation         3.3    (0.3)     (2.9)    10.6    (2.7)
                            ------- ------- --------- -------- -------
   End of period assets     $116.5  $106.8     $98.3   $102.4   $95.7
                            ======= ======= ========= ======== =======

Each line has been rounded on the schedule individually to increase
the accuracy of the amounts presented. Therefore totals and subtotals
may not foot.

Janus Investment Fund                 Lipper Rankings Based
                                  on Total Returns as of 3/31/05
                           -------------------------------------------
                                  1-Year                3-Year
                           --------------------- ---------------------
                                        Rank /                Rank /
                 Lipper    Percentile   Total    Percentile   Total
                 Category   Rank (%)    Funds     Rank (%)     Funds
              --------------------------------------------------------
Growth Funds
----------------------------------------------------------------------
Janus         Mid-Cap
Enterprise    Growth
Fund          Funds               12   59 / 530          8   33 / 426
Janus Fund    Large-Cap
              Growth
              Funds               14   86 / 652         42  226 / 547
Janus         Large-Cap
Mercury       Growth
Fund          Funds               18  114 / 652         13   66 / 547
Janus         Multi-Cap
Olympus       Growth
Fund          Funds               41  177 / 432         74  271 / 368
Janus         Multi-Cap
Orion         Growth
Fund          Funds                9   36 / 432         13   47 / 368
Janus         Large-Cap
Twenty        Growth
Fund(1)       Funds                2   10 / 652          3   11 / 547
Janus Venture Small-Cap
 Fund(1)      Growth
              Funds               16   77 / 512         13   54 / 427
----------------------------------------------------------------------
Core Funds
----------------------------------------------------------------------
Janus         Balanced
Balanced      Funds
Fund                              40  235 / 594         49  216 / 446
Janus         Large-Cap
Core          Core Funds
Equity
Fund                               4   35 / 908         15  109 / 774
Janus         Large-Cap
Growth and    Core Funds
Income Fund                        8   71 / 908         21  156 / 774
Janus         Multi-Cap
Risk-Managed  Core Funds
Stock Fund                         4   24 / 728          -          -
Janus         Multi-Cap
Contrarian    Core Funds
Fund                               3   15 / 728          4   20 / 523
----------------------------------------------------------------------
Income Funds
----------------------------------------------------------------------
Janus         General
Federal       Muni Debt
Tax-Exempt    Funds
Fund                              92  261 / 284         75  194 / 261
Janus         Intermediate
Flexible      Inv Grade
Bond Fund(2)  Debt Funds          74  340 / 459         14   51 / 389
Janus         High Current
High-Yield    Yield Funds
Fund                              56  230 / 415         82  287 / 350
Janus         Short
Short-Term    Investment
Bond Fund     Grade Debt
              Funds               42   85 / 206         45   62 / 139
----------------------------------------------------------------------
International/
Global Funds
----------------------------------------------------------------------
Janus Global  Health/
Life Sciences Biotechnology
Fund          Funds               24   43 / 179         41   63 / 155
Janus         Global
Global        Funds
Opportunities
Fund                              48  149 / 315         32   82 / 259
Janus         Science &
Global        Technology
Technology    Funds
Fund                              53  156 / 294         59  162 / 276
Janus         International
Overseas      Funds
Fund                              91  765 / 845         67  472 / 708
Janus         Global
Worldwide     Funds
Fund                              95  298 / 315         99  255 / 259
----------------------------------------------------------------------
Value Funds
----------------------------------------------------------------------
Janus         Mid-Cap
Mid Cap       Value
Value Fund -  Funds
Inv(3)                            56  126 / 228         42   73 / 177
Janus         Small-Cap
Small Cap     Core
Value Fund -  Funds
 Inv.(1,3)                        52  293 / 572         72  337 / 472
----------------------------------------------------------------------


Janus Investment Fund                Lipper Rankings Based
                                 on Total Returns as of 3/31/05
                          --------------------------------------------
                                  5-Year                10-Year
                           --------------------- ---------------------
                                        Rank /                Rank /
                Lipper     Percentile   Total    Percentile   Total
                Category    Rank (%)     Funds    Rank (%)     Funds
              --------------------------------------------------------
Growth Funds
----------------------------------------------------------------------
Janus         Mid-Cap
Enterprise    Growth
Fund          Funds               92  264 / 288         59   65 / 110
Janus         Large-Cap
Fund          Growth
              Funds               64  270 / 426         38   52 / 138
Janus         Large-Cap
Mercury       Growth
Fund          Funds               82  347 / 426          3    4 / 138
Janus         Multi-Cap
Olympus       Growth
Fund          Funds               73  179 / 245          -          -
Janus         Multi-Cap
Orion         Growth
Fund          Funds                -          -          -          -
Janus         Large-Cap
Twenty        Growth
Fund(1)       Funds               79  334 / 426          1    1 / 138
Janus         Small-Cap
Venture       Growth
Fund(1)       Funds               71  224 / 316         37    31 / 83
----------------------------------------------------------------------
Core Funds
----------------------------------------------------------------------
Janus         Balanced
Balanced      Funds
Fund                              63  229 / 364          8   12 / 166
Janus         Large-Cap
Core          Core Funds
Equity
Fund                              30  176 / 596          -          -
Janus         Large-Cap
Growth and    Core Funds
Income
Fund                              65  386 / 596          3    5 / 229
Janus         Multi-Cap
Risk-         Core Funds
Managed
Stock Fund                         -          -          -          -
Janus         Multi-Cap
Contrarian    Core Funds
Fund                              20   70 / 360          -          -
----------------------------------------------------------------------
Income Funds
----------------------------------------------------------------------
Janus         General
Federal       Muni Debt
Tax-Exempt    Funds
Fund                              89  203 / 228         76  109 / 144
Janus         Intermediate
Flexible      Inv Grade
Bond          Debt Funds
Fund(2)                           63  168 / 267          8   10 / 136
Janus         High
High-Yield    Current
Fund          Yield
              Funds               38  108 / 284          -          -
Janus         Short
Short-Term    Investment
Bond Fund     Grade Debt
              Funds               57   60 / 105         32    18 / 56
----------------------------------------------------------------------
International/
Global Funds
----------------------------------------------------------------------
Janus         Health/
Global Life   Bio-
Sciences      technology
Fund          Funds               88    67 / 76          -          -
Janus         Global Funds
Global
Opportunities
Fund                               -          -          -          -
Janus         Science &
Global        Technology
Technology    Funds
Fund                              58   82 / 141          -          -
Janus         Inter-
Overseas      national
Fund          Funds               83  425 / 512          5    8 / 171
Janus         Global Funds
Worldwide
Fund                              92  176 / 192         33    20 / 61
----------------------------------------------------------------------
Value
Funds
----------------------------------------------------------------------
Janus         Mid-Cap
Mid Cap       Value Funds
Value Fund  -
Inv(3)                            26   26 / 100          -          -
Janus         Small-Cap
Small Cap     Core Funds
Value Fund -
 Inv.(1,3)                        18   57 / 323          -          -
----------------------------------------------------------------------

               Percent of JIF Funds per Lipper Quartile based on Total
                                       Returns
               -------------------------------------------------------
                   1-Year        3-Year        5-Year       10-Year
-------------- -------------- ------------- ------------- ------------
1st Quartile            47.9%         40.9%         10.0%        50.0%
2nd Quartile            17.4          27.3          15.0         33.4
3rd Quartile            21.7          22.7          40.0          8.3
4th Quartile            13.0           9.1          35.0          8.3
-------------- -------------- ------------- ------------- ------------

Lipper Inc. -- A Reuters Company, is a nationally recognized
organization that ranks the performance of mutual funds within a
universe of funds that have similar investment objectives. Rankings
are historical with capital gains and dividends reinvested.

1. Closed to new investors.
2. Effective 02/25/05, Sharon Pichler is no longer the portfolio
   manager of Janus Federal Tax-Exempt Fund, and Doug Nelson is now
   the Fund manager.
3. Effective February 28, 2005, Janus Flexible Income Fund changed its
   name to Janus Flexible Bond Fund and added to its investment
   policy to state that at least 80% of its net assets (plus
   borrowings for investment purposes) will be invested in bonds.
4. Rating is for the investor share class only; other classes may have
   different performance characteristics.
Janus Investment Fund ("JIF")

         Average Annual Total Returns (%) for Periods Ended 3/31/05(1)
         -------------------------------------------------------------
                          Inception
                            Date     1 Year  3 Year  5 Year  10 Year
                          ---------  ------  ------  ------  -------
Growth Funds
----------------------------------------------------------------------
Janus Fund                  2/70      4.41   (0.94)  (11.18)   8.29
Janus Twenty Fund(2,7)      4/85      8.96    5.11   (13.07)  12.21
Janus Mercury Fund          5/93      3.84    1.81   (13.64)  10.90
Janus Olympus Fund         12/95      3.84   (0.47)  (13.84)     --
Janus Enterprise Fund       9/92     11.61    8.00   (15.60)   8.30
Janus Venture Fund(2,3)     4/85      7.39    8.52    (9.53)  10.22
Janus Orion Fund(4)         6/00      9.45    5.85       --      --
----------------------------------------------------------------------
Core Funds
----------------------------------------------------------------------
Janus Growth and Income
 Fund                       5/91      8.60    2.65    (5.57)  13.81
Janus Balanced Fund         9/92      4.87    4.05     0.29   11.13
Janus Contrarian Fund(4)    2/00     14.22    9.91     4.14      --
Janus Core Equity Fund      6/96      9.83    3.09    (2.73)     --
Janus Risk-Managed Stock
 Fund(5,6)                  2/03     13.03      --       --      --
----------------------------------------------------------------------
International/Global Funds
----------------------------------------------------------------------
Janus Worldwide Fund(5)     5/91     (0.61)  (0.92)  (11.18)   9.15
Janus Overseas Fund(4,5)    5/94      7.04    7.56    (7.50)  12.20
Janus Global Life Sciences
 Fund(5)                   12/98      2.19    1.45    (1.84)     --
Janus Global Technology
 Fund(3,4,5)               12/98     (7.33)  (4.17)  (22.76)     --
Janus Global Opportunities
 Fund(5)                    6/01      8.73    7.11       --      --
----------------------------------------------------------------------
Value Funds
----------------------------------------------------------------------
Janus Small Cap Value
 Fund - Inv.(2,8)          10/87      8.27    6.92    13.94   16.35
Janus Mid Cap Value
 Fund  - Inv.(12)           8/98     12.66   10.82    15.07      --
----------------------------------------------------------------------
Income Funds
----------------------------------------------------------------------
Janus Flexible Income
 Fund(9,10,11)              7/87      0.25    6.45     6.01    7.45
Janus High-Yield
 Fund(5,9,10,11)           12/95      6.01    7.78     6.16      --
Janus Short-Term
 Bond Fund(9,10,13)         9/92      0.21    2.93     4.32    5.23
----------------------------------------------------------------------

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)  This Fund may have significant exposure to emerging markets which
    may lead to greater price volatility.
5)  A 2% redemption fee may be imposed on shares held for 3 months or
    less. Performance shown does not reflect this redemption fee and,
    if reflected, performance would have been lower.
6)  The voluntary waiver of the Fund's management fee terminated on
    June 25, 2004. Without such waivers total returns from inception
    to June 24, 2004 would have been lower.
7)  Returns have sustained significant gains and losses due to market
    volatility in the consumer discretionary sector.
8)  Returns shown for Janus Small Cap Value Fund prior to April 21,
    2003, are those of Berger Small Cap Value Fund.
9)  Bond funds have the same interest rate, inflation, and credit
    risks that are associated with the underlying bonds owned by the
    Fund. Unlike owning individual bonds, there are ongoing fees and
    expenses associated with owning shares of bonds funds. The return
    of principal is not guaranteed due to net asset value fluctuation
    that is caused by changes in the price of specific bonds held in
    the Fund and selling of bonds within the fund by the Portfolio
    Manager.
10) As of March 31, 2005, the 30-day SEC Yield was 3.17% on Janus
    Federal Tax-Exempt Fund, 4.10% on Janus Flexible Income Fund,
    5.71% on Janus High-Yield Fund and 3.08% on Janus Short-Term Bond
    Fund.
11) 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.
12) Returns shown for Janus Mid Cap Value Fund prior to April 21,
    2003, are those of Berger Mid Cap Value Fund.
13) Janus Capital has contractually agreed to waive Janus Short-Term
    Bond Fund and Janus Federal Tax-Exempt Fund's total operating
    expenses to the levels indicated in the prospectus until at least
    March 1, 2006. Without such waivers, Janus Short-Term Bond Fund
    and Janus Federal Tax-Exempt Fund's yield would have been 2.46%
    and 2.40%, respectively and total returns would have been lower.
14) 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.

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.
    CONTACT: Janus Capital Group Inc.
             Investor Relations Contacts:
             Steve Belgrad, 303-394-7706
             Tamar Gerber, 303-336-4092
                or
             Media Contacts:
             Jane Ingalls, 303-394-7311
             Shelley Peterson, 303-316-5625

    SOURCE: Janus Capital Group Inc.