Janus Announces Third Quarter 2005 Financial Results

Company Release - 10/26/2005 7:55 AM ET

DENVER--(BUSINESS WIRE)--Oct. 26, 2005--Janus Capital Group Inc. (NYSE:JNS):

    --  Third Quarter GAAP Earnings of $0.15 Per Diluted Share and
        Adjusted Earnings of $0.14 Per Diluted Share

    --  Long-Term Net Inflows of $1.7 Billion for Quarter; Highest
        Level in Five Years

    --  Strong Investment Performance Continues

    --  Board Announces CEO Succession Plan

Janus Capital Group Inc. (NYSE:JNS) today reported third quarter GAAP net income of $31.7 million, or $0.15 per diluted share, compared with GAAP net income of $25.7 million, or $0.12 per diluted share, in the second quarter 2005.

To provide a more comparable basis for evaluating Janus' operating results and financial performance over time, Janus management analyzes 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 10 and 11.)

Excluding these items, third quarter 2005 adjusted net income was $31.0 million, or $0.14 per diluted share, compared with $24.7 million, or $0.11 per diluted share, in the second quarter 2005.

Investment Management operating margins on a GAAP basis for the third quarter 2005 were 22.7% compared with 21.0% in the second quarter 2005. On an adjusted basis, Investment Management operating margins for the third quarter 2005 were 25.8% compared with 23.0% in the second quarter 2005. Janus expects its 2006 operating expenses to be $20 million to $25 million lower due to expense-reduction efforts during the third quarter 2005.

Flows and Assets Under Management

Average assets under management in the third quarter were $135.0 billion versus $129.3 billion in the second quarter 2005, a 4.4% increase. At September 30, 2005, assets under management totaled $139.4 billion compared with $130.3 billion at June 30, 2005. The higher assets in the third quarter reflect long-term net inflows of $1.7 billion, money market net inflows of $0.4 billion and market appreciation of $7.0 billion. This quarter's long-term net inflows of $1.7 billion represent Janus' highest level in five years and the company's first quarter with positive flows since the second quarter 2003.

Janus' INTECH subsidiary continued to deliver strong performance in the mathematical discipline, with record net sales of $5.1 billion in the third quarter compared with $3.8 billion in the second quarter. INTECH assets under management at September 30, 2005, were $38.2 billion compared with $31.7 billion at the end of the second quarter of this year. Janus' third-quarter long-term net outflows of $3.4 billion improved by $0.5 billion from the second quarter, excluding INTECH and the previously announced ING redemption of $2.0 billion. Janus' net flows now have improved for five of the last six quarters.

"This was our best quarter of flows in five years," said CEO Steve Scheid. "Our positive flows -- combined with strong market conditions during the quarter -- led to improvements in our earnings per share and operating margins. These results reflect significant strides in our financial performance."

A breakdown of flows by channel can be found on page 12 and details on flows by discipline can be found on page 13.

CEO Succession

The board of directors of Janus Capital Group announced today that President and Chief Investment Officer Gary Black will become chief executive officer on January 3, 2006. Black, who will be CEO and CIO, will succeed Chairman and CEO Steve Scheid. Scheid will remain chairman of the board.

Paul Balser, the board's lead independent director, said it's the right time to make the transition because Janus is a stronger and more stable company.

"The board owes Steve Scheid a huge debt of gratitude," Balser said. "We asked Steve to be Janus' CEO and he did exactly what we needed him to do: resolve the regulatory issues, stabilize Janus, strengthen the management team and position the firm for growth. Now it's time for Gary to build on that foundation."

Balser called the succession plan "a natural evolution of a productive partnership."

"Steve and Gary made every key decision together and they've put all the right pieces in place for Janus to deliver shareholder value," Balser said.

Scheid said he and the board believe Janus needs a seasoned investment professional back in the driver's seat. "Given our research heritage and investment-focused culture, Gary has the ideal background to lead Janus," Scheid said. "Gary's vision, intelligence and passion for our business make him the right person for the job."

Black, 45, joined Janus April 26, 2004, as president and chief investment officer after serving as CIO for Goldman Sachs Asset Management's Global Equities business. Before working at Goldman, Black was a number-one-rated analyst on Institutional Investor magazine's "All-America Research Team" for six consecutive years while at Alliance Bernstein.

"I appreciate the board's vote of confidence," said Black. "As we move forward, the management team and I will stay focused on three priorities: delivering consistently strong performance, improving our flows and expanding our presence in the institutional and intermediary markets. We also remain committed to returning excess capital to our shareholders by continuing to repurchase shares."

Investment Management

Investment Management performance remained strong in the third quarter. As of September 30, 2005, approximately 65% of the funds in the company's primary retail fund family, Janus Investment Fund (JIF), were in the top half of their Lipper categories on a one-year total return basis. More than 59% of the JIF funds were in the top half of their Lipper categories on a three-year total return basis. (Detailed Lipper rankings and performance data for all JIF funds are on page 14.)

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

    --  88% and 63% of Janus-managed JIF equity funds are in the top
        half of their Lipper categories on a one-year and three-year
        total-return basis, respectively.

    --  90% of JIF funds rank in the top half of their Lipper
        categories on a total return basis since portfolio manager
        inception.

    --  Seven Janus products rank in the top 2% of their respective
        Lipper categories on a one-year total-return basis: Janus
        Twenty; Janus Adviser Forty; Janus Orion; Janus Growth and
        Income; Janus Contrarian; Janus Core Equity; and Janus
        Overseas.

    --  The Wall Street Journal cited eight Janus products as
        "Category Kings" in its Mutual Funds Quarterly Review for the
        third quarter 2005.

Black said he's encouraged that the marketplace is noticing the good investment returns the company's been delivering.

"Perception has lagged reality for some time, so it's good to see that our strong, consistent performance is translating into better flows," Black said.

Financial Discussion -- Third Quarter 2005 vs. Second Quarter 2005

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

                                 GAAP Results      Adjusted Results
                              Three Months Ended  Three Months Ended
                              ------------------  ------------------
                              Sept. 30, June 30,  Sept. 30, June 30,
                                2005      2005      2005      2005
                              --------- --------  --------- --------
Investment Management Segment
-----------------------------
Average Assets ($ bn)         $135.0    $129.3    $135.0    $129.3
Ending AUM ($ bn)             $139.4    $130.3    $139.4    $130.3
Revenues                      $218.4    $208.7    $218.4    $208.7
Operating Expenses            $168.9    $164.8    $162.0    $160.6
Operating Income               $49.5     $43.9     $56.4     $48.1
Operating Margin                22.7%     21.0%     25.8%     23.0%

Consolidated Net Income        $31.7     $25.7     $31.0     $24.7
Diluted Earnings Per Share     $0.15     $0.12     $0.14     $0.11
Common Stock Repurchases
 (shares mm)                     7.1       3.8       7.1       3.8
Shares Repurchased            $101.9     $55.3    $101.9     $55.3

Adjusted Investment Management Segment

Third quarter 2005 adjusted operating margins improved to 25.8% from 23.0% in the second quarter, reflecting increased revenues of $9.7 million and a slight rise in adjusted operating expenses. Third quarter revenues increased to $218.4 million from $208.7 million in the previous quarter based on the higher average assets under management this quarter. The $1.4 million increase in adjusted operating expenses was driven by higher compensation costs offset by lower advertising expenses as Janus shifted its advertising focus from mass market television to select print publications. The increase in employee compensation was caused by higher investment-performance-driven incentive compensation. During the third quarter, Janus implemented certain expense-reduction efforts that are expected to reduce operating expenses by $20 million to $25 million in 2006, net of continued investments in the business.

Printing and Fulfillment Segment

Janus' Printing and Fulfillment business, Rapid Solutions Group, had an operating loss of $4.7 million in the third quarter 2005 compared with a $4.1 million loss in the second quarter of 2005. As with the second quarter, the current quarter loss was primarily driven by expected lower seasonal volumes.

Capital and Liquidity

At September 30, 2005, Janus had stockholders' equity of $2.6 billion, cash and investments of $849.3 million and $376.6 million of debt outstanding. As part of the company's active management of its capital and liquidity position, Janus repurchased 7.1 million shares of its common shares in the third quarter at an average price of $14.42 per share, for a total of $101.9 million. Since July 2004, when the Board of Directors authorized the current $500 million share repurchase plan, Janus has repurchased 23.5 million shares totaling $340.9 million, reducing outstanding shares by 9%.

Third Quarter 2005 Earnings Call Information

Janus Capital Group will discuss its results during a conference call on Wednesday, October 26, 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/ir.

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. Rankings referenced exclude money markets.

Funds distributed by Janus Distributors LLC (10/05).

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), including those that appear under headings such as "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." 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
                         ---------------------------------------------
                         September  June    March   December September
                            30,      30,      31,      31,      30,
                           2005     2005     2005     2004     2004
                         --------- ------- -------- -------- ---------
 Investment Management
  Revenues:
  Investment management
   fees                    $176.2  $167.3   $173.1   $176.5    $170.2
  Shareowner servicing
   fees and other            42.2    41.4     42.9     45.0      45.0
                         --------- ------- -------- -------- ---------
   Total                    218.4   208.7    216.0    221.5     215.2
                         --------- ------- -------- -------- ---------

 Investment Management Operating
  Expenses:
  Employee compensation
   and benefits              80.1    69.4     71.3     61.4      56.7
  Long-term incentive
   compensation              18.1    18.5     19.0     37.1      22.0
  Marketing and
   fulfillment                5.4     9.0      9.7      9.2       6.5
  Distribution               25.5    25.9     27.1     29.5      29.2
  Depreciation and
   amortization               8.4     9.4     10.2     11.1      11.5
  General,
   administrative and
   occupancy                 31.4    38.6     32.1     39.1      31.8
  Restructuring and
   impairments                  -       -      5.5        -      10.2
  Provision for mutual
   fund investigation,
   net of recoveries            -    (6.0)    (3.3)       -         -
                         --------- ------- -------- -------- ---------
   Total                    168.9   164.8    171.6    187.4     167.9
                         --------- ------- -------- -------- ---------

 Investment Management
  Operating Income           49.5    43.9     44.4     34.1      47.3

 Printing and
  Fulfillment Segment:
  Revenue                    19.1    20.6     23.0     18.3      22.6
  Operating expenses         21.9    22.8     24.2     24.7      25.0
  Intangibles
   amortization               1.9     1.9      1.9      1.9       1.9
                         --------- ------- -------- -------- ---------
 Printing and
  Fulfillment Operating
  Loss                       (4.7)   (4.1)    (3.1)    (8.3)     (4.3)

 Interest expense            (7.2)   (7.2)    (7.2)    (7.2)     (4.8)
 Other, net                   7.9    11.4      9.3      8.6       4.9
 Income tax benefit
  (provision)               (10.5)  (15.7)   (21.4)    (7.7)      5.5
 Equity in earnings of
  unconsolidated
  affiliate                   1.9     1.7      1.7      1.8       1.6
 Minority interest in
  consolidated earnings      (5.2)   (4.3)    (4.1)    (3.1)     (2.9)
                         --------- ------- -------- -------- ---------

 Net Income                 $31.7   $25.7    $19.6    $18.2     $47.3
                         ========= ======= ======== ======== =========

 Basic Earnings per
  Share
  Weighted average shares
   outstanding (in
   millions)                216.2   221.0    226.0    228.7     231.8
  Basic earnings per
   share                    $0.15   $0.12    $0.09    $0.08     $0.20

 Diluted Earnings per
  Share
  Weighted average shares
   outstanding (in
   millions)                217.2   221.8    227.1    229.9     233.0
  Diluted earnings per
   share                    $0.15   $0.12    $0.09    $0.08     $0.20
JANUS CAPITAL GROUP INC.
             UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
                       NON-GAAP ADJUSTED BASIS
             (dollars in millions, except per share data)

                                       Three Months Ended
                          --------------------------------------------
                          September  June   March   December September
                             30,      30,     31,      31,      30,
                            2005     2005    2005     2004     2004
                          --------- ------- ------- -------- ---------
 Investment Management
  Revenues:
  Investment management
   fees                     $176.2  $167.3  $173.1   $176.5    $170.2
  Shareowner servicing
   fees and other             42.2    41.4    42.9     45.0      45.0
                          --------- ------- ------- -------- ---------
   Total                     218.4   208.7   216.0    221.5     215.2
                          --------- ------- ------- -------- ---------

 Investment Management Operating
  Expenses:
  Employee compensation
   and benefits               73.5    66.2    71.3     61.4      54.1
  Long-term incentive
   compensation               17.8    18.5    19.0     22.1      22.0
  Marketing and
   fulfillment                 5.4     9.0     9.7      9.2       6.5
  Distribution                25.5    25.9    27.1     29.5      29.2
  Depreciation and
   amortization                8.4     9.4    10.2     11.1      11.5
  General, administrative
   and occupancy              31.4    31.6    32.1     39.1      31.8
                          --------- ------- ------- -------- ---------
   Total                     162.0   160.6   169.4    172.4     155.1
                          --------- ------- ------- -------- ---------

 Investment Management
  Operating Income            56.4    48.1    46.6     49.1      60.1

 Printing and Fulfillment
  Segment:
  Revenue                     19.1    20.6    23.0     18.3      22.6
  Operating expenses          21.9    22.8    24.2     22.5      25.0
  Intangibles
   amortization                1.9     1.9     1.9      1.9       1.9
                          --------- ------- ------- -------- ---------
 Printing and Fulfillment
  Operating Loss              (4.7)   (4.1)   (3.1)    (6.1)     (4.3)

 Interest expense             (7.2)   (7.2)   (7.2)    (7.2)     (7.3)
 Other, net                    7.9     5.6     5.2      8.6       4.9
 Income tax provision        (18.1)  (15.1)  (15.0)   (14.3)    (21.8)
 Equity in earnings of
  unconsolidated affiliate     1.9     1.7     1.7      1.8       1.6
 Minority interest in
  consolidated earnings       (5.2)   (4.3)   (4.1)    (3.1)     (2.9)
                          --------- ------- ------- -------- ---------

 Net Income                  $31.0   $24.7   $24.1    $28.8     $30.3
                          ========= ======= ======= ======== =========

 Basic Earnings per Share
  Weighted average shares
   outstanding (in
   millions)                 216.2   221.0   226.0    228.7     231.8
  Basic earnings per
   share                     $0.14   $0.11   $0.11    $0.13     $0.13

 Diluted Earnings per
  Share
  Weighted average shares
   outstanding (in
   millions)                 217.2   221.8   227.1    229.9     233.0
  Diluted earnings per
   share                     $0.14   $0.11   $0.11    $0.13     $0.13

See reconciliation of non-GAAP adjustments on pages 10 and 11.
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. Only those line items impacted by
adjustments are presented individually.

                        Three Months Ended September 30, 2005
               -------------------------------------------------------
                                      Investment   Printing
               Investment  Non-GAAP   Management     and     Adjusted
               Management Adjustments  Adjusted   Fulfillment  Total
               ---------- ----------- ----------- ----------- --------
Revenues          $218.4          $-      $218.4       $19.1   $237.5

Employee
 compensation
 and benefits       80.1        (6.6)(1)    73.5         1.4     74.9
Long-term
 incentive
 compensation       18.1        (0.3)(1)    17.8         0.1     17.9
Operating
 expenses           70.7           -        70.7        22.3     93.0
               ---------- ----------- ----------- ----------- --------
     Total         168.9        (6.9)      162.0        23.8    185.8
               ---------- ----------- ----------- ----------- --------

Operating
 Income
 (Loss)             49.5         6.9        56.4        (4.7)    51.7
Operating
 Margin             22.7%                   25.8%      -24.6%    21.8%

Other income
 (expense)          (3.0)          -        (3.0)        0.4     (2.6)
Income tax
 benefit
 (provision)       (12.1)       (7.6)(2)   (19.7)        1.6    (18.1)
               ---------- ----------- ----------- ----------- --------
Net Income
 (Loss)            $34.4       $(0.7)      $33.7       $(2.7)   $31.0
               ========== =========== =========== =========== ========

Diluted
 Earnings
 (Loss) per
 Share             $0.16          $-       $0.16      $(0.01)   $0.14

Average Assets
 Under
 Management
 (Billions)       $135.0

                          Three Months Ended June 30, 2005
               -------------------------------------------------------
                                      Investment   Printing
               Investment  Non-GAAP   Management      and     Adjusted
               Management Adjustments  Adjusted   Fulfillment  Total
               ---------- ----------- ----------- ----------- --------
Revenues          $208.7          $-      $208.7       $20.6   $229.3

Operating
 expenses           62.8           -        62.8        24.7     87.5
Employee
 compensation
 and benefits       69.4        (3.2)(3)    66.2           -     66.2
General,
 administrative
 and occupancy      38.6        (7.0)(4)    31.6           -     31.6
Provision for
 mutual fund
 investigation,
 net of
 recoveries         (6.0)        6.0(5)        -           -        -
               ---------- ----------- ----------- ----------- --------
     Total         164.8        (4.2)      160.6        24.7    185.3
               ---------- ----------- ----------- ----------- --------

Operating
 Income
 (Loss)             43.9         4.2        48.1        (4.1)    44.0
Operating
 Margin             21.0%                   23.0%      -19.9%    19.2%

Interest
 expense            (7.2)          -        (7.2)          -     (7.2)
Other income
 (expense)          11.1        (5.8)(6)     5.3         0.3      5.6
Income tax
 benefit
 (provision)       (17.1)        0.6(7)    (16.5)        1.4    (15.1)
Equity earnings
 in
 unconsolidated
 affiliate           1.7           -         1.7           -      1.7
Minority
 interest in
 consolidated
 earnings           (4.3)          -        (4.3)          -     (4.3)
               ---------- ----------- ----------- ----------- --------
Net Income
 (Loss)            $28.1       $(1.0)      $27.1       $(2.4)   $24.7
               ========== =========== =========== =========== ========

Diluted
 Earnings
 (Loss) per
 Share             $0.13          $-       $0.12      $(0.01)   $0.11

Average Assets
 Under
 Management
 (Billions)       $129.3

                          Three Months Ended March 31, 2005
               -------------------------------------------------------
                                      Investment   Printing
               Investment  Non-GAAP   Management      and     Adjusted
               Management Adjustments  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)(8)       -           -        -
Provision for
 mutual fund
 investigation      (3.3)        3.3(5)        -           -        -
               ---------- ----------- ----------- ----------- --------
     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)(6)     4.9         0.3      5.2
Income tax
 benefit
 (provision)       (22.4)        6.4(7)    (16.0)        1.0    (15.0)
Equity earnings
 in
 unconsolidated
 affiliate           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

See notes to non-GAAP adjustments on the following page.

                       JANUS CAPITAL GROUP INC.
                 NON-GAAP RECONCILIATIONS (CONTINUED)
             (dollars in millions, except per share data)

                             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)(9)    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)(7)   (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


                       JANUS CAPITAL GROUP INC.
                 NON-GAAP RECONCILIATIONS (CONTINUED)
             (dollars in millions, except per share data)

                                  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)(7)      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
               -------------------------------------------------------
                                      Investment   Printing
               Investment  Non-GAAP   Management     and      Adjusted
               Management Adjustments  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)(10)   54.1           -     54.1
Restructuring
 and
 impairments        10.2       (10.2)(11)      -           -        -
               ---------- ----------- ----------- ----------- --------
     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)(7)    (7.3)          -     (7.3)
Other income
 (expense)           4.7           -         4.7         0.2      4.9
Income tax
 benefit
 (provision)         3.8       (27.3)(7)   (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

Notes to non-GAAP adjustments:

(1)  Severance charge related to the departure of the Principal
     Operating Officer and other administrative personnel.
(2)  Includes tax effect of adjustments and $5.0 million for the
     reversal of a tax contingency.
(3)  Severance charge related to the departure of the CFO.
(4)  Accrual related to the possible resolution of certain legal-
     related matters.
(5)  Insurance recoveries of $6.0 million in Q1 2005 and $8.4 million
     in Q2 2005 for costs incurred related to the mutual fund
     investigation, net of Q1 2005 and Q2 2005 ongoing legal fees,
     respectively.
(6)  Realized gain on the sale of investments. In the first and second
     quarters of 2005, the Company reduced its seed capital
     investments by $22.8 million and $26.0 million, respectively.
     This reduction in seed capital produced after-tax gains of $2.5
     million and $3.6 million in Q1 2005 and Q2 2005, respectively.
     Included in Q3 2005 is $1.9 million of investment gains which are
     considered a component of normal investing activity and therefore
     have not been adjusted.
(7)  Includes tax effect of adjustments. Q3 2004 includes the reversal
     of a $22.5 million tax contingency and related accrued interest
     of $2.5 million.
(8)  Charges related to the closure of a 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.
(9)  Equity awards granted on a vested basis in 2004.
(10) Charges related to severance payments and the accelerated vesting
     of restricted stock as a result of executive level departures.
(11) 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.
(12) Charges related to the closure of a non-strategic facility.
JANUS CAPITAL GROUP INC.
           UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                        (dollars in millions)

                                           September 30, December 31,
                                               2005          2004
                                           ------------- -------------
 Assets
  Cash and cash equivalents                      $526.0        $527.1
  Investments                                     323.3         434.7
  Other assets                                    257.6         344.4
  Property and equipment, net                      63.2          62.0
  Intangibles and goodwill, net                 2,411.6       2,399.4
                                           ------------- -------------
   Total Assets                                $3,581.7      $3,767.6
                                           ============= =============

 Liabilities and Stockholders' Equity
  Debt                                           $376.6        $377.5
  Other liabilities                               207.2         219.8
  Deferred income taxes                           415.7         435.8
  Stockholders' equity                          2,582.2       2,734.5
                                           ------------- -------------
   Total Liabilities and Stockholders'
    Equity                                     $3,581.7      $3,767.6
                                           ============= =============

                   UNAUDITED CONDENSED CONSOLIDATED
                        CASH FLOW INFORMATION
                        (dollars in millions)

                                         Three Months Ended
                              ----------------------------------------
                              September 30,   June 30,   September 30,
 Cash provided by (used in)       2005          2005         2004
                              -------------- ----------- -------------
  Operating activities                $58.5      $100.1       $(178.0)
  Investing activities                  2.8        83.4          (4.1)
  Financing activities               (111.2)      (62.4)        (53.9)
                              -------------- ----------- -------------
 Net change during period            $(49.9)     $121.1       $(236.0)
                              ============== =========== =============

                          ASSETS BY CHANNEL
                        (dollars in billions)

                                                 Net Flows for the
                                                 Three Months Ended
                                              ------------------------
                               September 30,  September 30,  June 30,
                                   2005           2005        2005
                               -------------- ------------- ----------
 Retail                                $45.5         $(1.0)     $(1.1)
 Global Advisors
 (excluding ING)                        51.6          (1.0)      (2.2)
 Institutional                          42.3           3.7        3.2
                               -------------- ------------- ----------
  Total                               $139.4          $1.7      $(0.1)
                               ============== ============= ==========
Note: Flows exclude institutional money market
JANUS CAPITAL GROUP INC.
               ASSETS & FLOWS BY INVESTMENT DISCIPLINE
                        (dollars in billions)

                                       Three Months Ended
                          --------------------------------------------
                          September December March    June   September
                             30,       31,     31,     30,      30,
                            2004      2004    2005    2005     2005
                          --------- -------- ------- ------- ---------
Growth/Blend
  Beginning of period
   assets                    $74.3    $68.2   $71.4   $66.3     $64.7
  Sales                        1.1      1.5     2.2     1.6       1.9
  Redemptions                  4.4      6.0     4.8     5.2       4.1
                          --------- -------- ------- ------- ---------
  Net flows                   (3.3)    (4.6)   (2.6)   (3.7)     (2.2)
  Market                      (2.8)     7.9    (2.5)    2.0       4.2
                          --------- -------- ------- ------- ---------
  End of period assets       $68.2    $71.4   $66.3   $64.7     $66.7
                          ========= ======== ======= ======= =========

Global/International
  Beginning of period
   assets                    $16.9    $15.1   $14.6   $13.4     $11.5
  Sales                        0.3      0.3     0.4     0.3       0.3
  Redemptions                  1.8      2.4     1.5     1.9       1.1
                          --------- -------- ------- ------- ---------
  Net flows                   (1.6)    (2.2)   (1.2)   (1.7)     (0.8)
  Market                      (0.2)     1.8       -    (0.2)      1.1
                          --------- -------- ------- ------- ---------
  End of period assets       $15.1    $14.6   $13.4   $11.5     $11.7
                          ========= ======== ======= ======= =========

Mathematical/Quantitative
  Beginning of period
   assets                    $17.5    $20.1   $25.8   $27.6     $31.7
  Sales                        3.0      4.1     2.4     4.0       5.5
  Redemptions                  0.2      0.2     0.4     0.3       0.4
                          --------- -------- ------- ------- ---------
  Net flows                    2.8      3.9     2.0     3.8       5.1
  Market                      (0.1)     1.8    (0.3)    0.4       1.4
                          --------- -------- ------- ------- ---------
  End of period assets       $20.1    $25.8   $27.6   $31.7     $38.2
                          ========= ======== ======= ======= =========

Fixed Income
  Beginning of period
   assets                     $6.0     $5.9    $6.2    $5.9      $5.7
  Sales                        0.3      0.7     0.4     0.3       0.2
  Redemptions                  0.5      0.6     0.5     0.4       0.5
                          --------- -------- ------- ------- ---------
  Net flows                   (0.2)     0.1    (0.2)   (0.2)     (0.2)
  Market                       0.1      0.3    (0.1)    0.1      (0.1)
                          --------- -------- ------- ------- ---------
  End of period assets        $5.9     $6.2    $5.9    $5.7      $5.4
                          ========= ======== ======= ======= =========

Value
  Beginning of period
   assets                     $9.6     $9.1   $10.2   $10.2     $10.0
  Dispositions                (0.6)       -       -    (0.2)        -
  Sales                        0.8      1.0     1.0     0.7       0.7
  Redemptions                  0.6      0.8     1.0     1.1       0.8
                          --------- -------- ------- ------- ---------
  Net flows                    0.2      0.1     0.1    (0.4)     (0.1)
  Market                         -      0.8       -     0.4       0.5
                          --------- -------- ------- ------- ---------
  End of period assets        $9.1    $10.2   $10.2   $10.0     $10.4
                          ========= ======== ======= ======= =========

Money Market
  Beginning of period
   assets                    $11.1    $11.8   $10.8    $8.5      $6.7
  Sales                       20.0     19.5    12.3     9.2       8.1
  Redemptions                 19.4     20.5    14.6    11.0       7.7
                          --------- -------- ------- ------- ---------
  Net flows                    0.6     (1.0)   (2.3)   (1.8)      0.4
  Market                         -        -       -       -         -
                          --------- -------- ------- ------- ---------
  End of period assets       $11.8    $10.8    $8.5    $6.7      $7.0
                          ========= ======== ======= ======= =========

Total
  Beginning of period
   assets                   $135.4   $130.2  $139.0  $131.8    $130.3
  Dispositions                (0.6)       -       -    (0.2)        -
  Sales                       25.5     27.1    18.6    16.3      16.6
  Redemptions                 27.1     30.6    22.8    20.2      14.5
                          --------- -------- ------- ------- ---------
  Net flows                   (1.6)    (3.5)   (4.2)   (3.9)      2.1
  Market                      (3.0)    12.3    (3.0)    2.6       7.0
                          --------- -------- ------- ------- ---------
  End of period assets      $130.2   $139.0  $131.8  $130.3    $139.4
                          ========= ======== ======= ======= =========

Total Excluding Money Markets
  Beginning of period
   assets                   $124.3   $118.4  $128.2  $123.3    $123.6
  Dispositions                (0.6)       -       -    (0.2)        -
  Sales                        5.5      7.5     6.3     6.9       8.5
  Redemptions                  7.7     10.1     8.2     9.0       6.8
                          --------- -------- ------- ------- ---------
  Net flows                   (2.2)    (2.6)   (1.9)   (2.1)      1.7
  Market                      (3.0)    12.3    (3.0)    2.6       7.0
                          --------- -------- ------- ------- ---------
  End of period assets      $118.4   $128.2  $123.3  $123.6    $132.4
                          ========= ======== ======= ======= =========

Total Excluding Mathematical/Quantitative & Money Markets
  Beginning of period
   assets                   $106.8    $98.3  $102.4   $95.7     $91.9
  Dispositions                (0.6)       -       -    (0.2)        -
  Sales                        2.5      3.4     3.9     2.8       3.1
  Redemptions                  7.5      9.9     7.8     8.7       6.4
                          --------- -------- ------- ------- ---------
  Net flows                   (5.0)    (6.5)   (3.9)   (5.9)     (3.4)
  Market                      (2.9)    10.6    (2.7)    2.2       5.7
                          --------- -------- ------- ------- ---------
  End of period assets       $98.3   $102.4   $95.7   $91.9     $94.2
                          ========= ======== ======= ======= =========

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 9/30/05
                               ---------------------------------------
                                1-Year        3-Year        5-Year
                             ------------  ------------  -------------
                             Percen-       Percen-       Percen-
                              tile  Rank/   tile  Rank/   tile  Rank/
             PM     Lipper    Rank  Total   Rank  Total   Rank  Total
          Inception Category  (%)   Funds   (%)   Funds   (%)   Funds
          --------- -------- ------------  ------------  -------------
Growth Funds
----------------------------------------------------------------------
Janus       Jan-02  Mid-Cap
 Enterprise         Growth
 Fund               Funds      27  144/541   23  101/441   88  281/320

Janus       Dec-99  Large-Cap
 Fund               Growth
                    Funds      47  315/678   56  321/577   66  297/453

Janus       Feb-03  Large-Cap
 Mercury            Growth
 Fund               Funds      19  124/678   12   67/577   73  329/453

Janus       Aug-97  Multi-Cap
 Olympus            Growth
 Fund               Funds      28  114/414   63  225/358   71  180/255

Janus       Jun-00  Multi-Cap
 Orion              Growth
 Fund               Funds       2    6/414    9   29/358   30   75/255

Janus       Aug-97  Large-Cap
 Twenty             Growth
 Fund(1)            Funds       2   11/678    3   14/577   51  228/453

Janus       Jan-01  Small-Cap
 Venture            Growth
 Fund(1)            Funds      35  178/522   19   79/436   59  193/327
----------------------------------------------------------------------
Core Funds
----------------------------------------------------------------------
Janus       Apr-05  Balanced
 Balanced           Funds
 Fund                          38  236/629   84  386/461   49  177/366

Janus       Apr-05  Large-Cap
 Core               Core
 Equity             Funds
 Fund                           1    7/881    8   58/765   11   64/603

Janus       Dec-03  Large-Cap
 Growth             Core
 and Income         Funds
 Fund                           1    2/881   12   86/765   39  233/603

Janus       Feb-03  Multi-Cap
 Risk-              Core
 Managed            Funds
 Stock
 Fund                          17  121/752    -        -    -        -
Janus       Feb-00  Multi-Cap
 Contrarian         Core
 Fund               Funds       1    3/752    1    2/567   11   40/396
----------------------------------------------------------------------
Income Funds
----------------------------------------------------------------------
Janus       Feb-05  General
 Federal            Muni Debt
 Tax-Exempt         Funds
 Fund                          66  176/268   88  223/254   78  173/221

Janus       Dec-91  Intermediate
 Flexible           Inv
 Bond               Grade Debt
 Fund               Funds      60  275/458   37  146/396   41  118/290

Janus       Dec-03  High
 High-              Current
 Yield              Yield
 Fund               Funds      61  258/424   93  337/362   49  145/297

Janus       Jun-03  Short
 Short-             Investment
 Term               Grade Debt
 Bond               Funds
 Fund                          71  155/218   15   23/160   49   54/111
----------------------------------------------------------------------
International/Global Funds
----------------------------------------------------------------------
Janus       Dec-98  Health/
 Global             Biotech-
 Life               nology
 Sciences           Funds
 Fund                          24   42/179   46   73/161   65    64/98

Janus       Jun-01  Global
 Global             Funds
 Opportu-
 nities
 Fund                          91  298/328   65  182/283    -        -

Janus       Dec-98  Science &
 Global             Technology
 Technology         Funds
 Fund                          29   83/288   91  241/265   54  113/210

Janus       Jun-03  Interna-
 Overseas           tional
 Fund               Funds       1    3/871   14  100/736   68  361/534

Janus       Jun-04  Global
 Worldwide          Funds
 Fund                          88  288/328   98  276/283   95  196/207
----------------------------------------------------------------------
Value Funds
----------------------------------------------------------------------
Janus Mid   Aug-98  Mid-Cap
 Cap                Value
 Value              Funds
 Fund  -
 Inv(2)                        64  157/247   35   68/195   11   11/102

Janus       Feb-97  Small-Cap
 Small              Core
 Cap                Funds
 Value
 Fund -
 Inv.(1,2)                     79  477/604   70  340/488   21   69/341
----------------------------------------------------------------------

Janus Adviser Funds - I Shares

Growth Funds
----------------------------------------------------------------------
Janus       Aug-97  Large-Cap
 Adviser            Growth
 Forty(3)           Funds       1   2/678    13   72/577   10  41/453
----------------------------------------------------------------------



Janus Investment Fund                Lipper Rankings Based
                                on Total Returns as of 9/30/05
                               ---------------------------------------
                                                 Since PM
                                     10-Year     Inception
                                  ------------  ------------
                                  Percen-       Percen-
                                   tile  Rank/   tile  Rank/
             PM     Lipper         Rank  Total   Rank  Total
          Inception Category       (%)   Funds   (%)   Funds
          --------- --------      ------------  ------------
Growth Funds
----------------------------------------------------------------------
Janus       Jan-02  Mid-Cap
 Enterprise         Growth
 Fund               Funds          61   73/120   16   63/406

Janus       Dec-99  Large-Cap
 Fund               Growth
                    Funds          40   59/147   62  250/404

Janus       Feb-03  Large-Cap
 Mercury            Growth
 Fund               Funds          11   15/147   13   73/602

Janus       Aug-97  Multi-Cap
 Olympus            Growth
 Fund               Funds           -        -   14   18/134

Janus       Jun-00  Multi-Cap
 Orion              Growth
 Fund               Funds           -        -   34   79/236

Janus       Aug-97  Large-Cap
 Twenty             Growth
 Fund(1)            Funds           2    2/147    3    7/234

Janus       Jan-01  Small-Cap
 Venture            Growth
 Fund(1)            Funds          43    40/93   27   95/355
----------------------------------------------------------------------
Core Funds
----------------------------------------------------------------------
Janus       Apr-05  Balanced
 Balanced           Funds
 Fund                               6   10/169

Janus       Apr-05  Large-Cap
 Core               Core
 Equity             Funds
 Fund                               -        -

Janus       Dec-03  Large-Cap
 Growth             Core
 and Income         Funds
 Fund                               2     4/221   2    9/840

Janus       Feb-03  Multi-Cap
 Risk-              Core
 Managed            Funds
 Stock
 Fund                               -         -  20  117/604

Janus       Feb-00  Multi-Cap
 Contrarian         Core
 Fund               Funds           -         -  13   44/338
----------------------------------------------------------------------
Income Funds
----------------------------------------------------------------------
Janus       Feb-05  General
 Federal            Muni Debt
 Tax-Exempt         Funds
 Fund                               70  101/145

Janus       Dec-91  Intermediate
 Flexible           Inv
 Bond               Grade Debt
 Fund               Funds           10   13/138   4     2/55

Janus       Dec-03  High
 High-              Current
 Yield              Yield
 Fund               Funds            -        -  50  201/409

Janus       Jun-03  Short
 Short-             Investment
 Term               Grade Debt
 Bond               Funds
 Fund                               20    12/62  19   35/188
----------------------------------------------------------------------
International/Global Funds
----------------------------------------------------------------------
Janus       Dec-98  Health/
 Global             Biotech-
 Life               nology
 Sciences           Funds
 Fund                                -        -  33    16/48

Janus       Jun-01  Global
 Global             Funds
 Opportu-
 nities
 Fund                                -        -  15    34/231

Janus       Dec-98  Science &
 Global             Technology
 Technology         Funds
 Fund                                -        -  22     17/79

Janus       Jun-03  Interna-
 Overseas           tional
 Fund               Funds            4    7/191   5    38/788

Janus       Jun-04  Global
 Worldwide          Funds
 Fund                               52    38/73  87   282/325
----------------------------------------------------------------------
Value Funds
----------------------------------------------------------------------
Janus Mid   Aug-98  Mid-Cap
 Cap                Value
 Value              Funds
 Fund  -
 Inv(2)                              -        -   4      3/79

Janus       Feb-97  Small-Cap
 Small              Core
 Cap                Funds
 Value
 Fund -
 Inv.(1,2)                           -        -  12    17/153
----------------------------------------------------------------------

Janus Adviser Funds - I Shares

Growth Funds
----------------------------------------------------------------------
Janus       Aug-97  Large-Cap
 Adviser            Growth
 Forty(3)           Funds            -         -   1    1/234
----------------------------------------------------------------------


       Percent of JIF Funds per Lipper Quartile based on Total Returns
       ---------------------------------------------------------------
                   1-Year  3-Year  5-Year  10-Year  Since PM Inception
----------------------------------------------------------------------
1st Quartile        39.1%   45.5%   19.0%    58.3%        70.0%
2nd Quartile        26.1    13.6    28.6     16.7         20.0
3rd Quartile        21.8    18.2    38.1     25.0          5.0
4th Quartile        13.0    22.7    14.3      0.0          5.0
----------------------------------------------------------------------

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. Ranking is for the investor share class only; other classes may
   have different performance characteristics.
3. Ranking is for I-share class only; other classes may have different
   performance characteristics.

Data presented reflects past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 800-975-9932 or visit www.janus.com for performance current to the most recent month-end.

See notes to performance on the following page.

Janus Investment Fund ("JIF")

                         Average Annual Total Returns (%) for Periods
                                        Ended 9/30/05(1)
                         ---------------------------------------------
                                                                 Life
                         Inception                         10     of
                           Date    1 Year 3 Year 5 Year   Year   Fund
                         --------- ------ ------ ------- ------ ------
Growth Funds
======================================================================
Janus Fund                   2/70  12.54  12.83   (9.16)  7.09  13.87
----------------------------------------------------------------------
Janus Twenty Fund(2,3)       4/85  21.91  20.03   (7.63) 11.26  13.57
----------------------------------------------------------------------
Janus Mercury Fund           5/93  16.23  16.75   (9.79)  9.07  12.66
----------------------------------------------------------------------
Janus Olympus Fund          12/95  20.36  16.47  (10.19)    --  11.41
----------------------------------------------------------------------
Janus Enterprise Fund        9/92  23.57  21.88  (12.29)  7.34  11.25
----------------------------------------------------------------------
Janus Venture Fund(2,4)      4/85  20.65  24.74   (3.68)  8.50  13.42
----------------------------------------------------------------------
Janus Orion Fund(5)          6/00  29.33  25.42   (3.48)    --  (3.95)
======================================================================
Core Funds
======================================================================
Janus Growth and Income
 Fund                        5/91  24.40  17.39   (1.77) 12.59  13.71
----------------------------------------------------------------------
Janus Balanced Fund          9/92  10.62   9.51    2.16  10.52  11.24
----------------------------------------------------------------------
Janus Contrarian Fund(5)     2/00  34.77  29.88    7.00     --   8.11
----------------------------------------------------------------------
Janus Core Equity Fund       6/96  23.78  17.93    1.39     --  13.00
----------------------------------------------------------------------
Janus Risk-Managed Stock
 Fund(6,7)                   2/03  18.48     --      --     --  22.11
======================================================================
International/Global
 Funds
======================================================================
Janus Worldwide Fund(6)      5/91  13.86  11.50   (8.03)  7.70  10.83
----------------------------------------------------------------------
Janus Overseas Fund(5,6)     5/94  41.76  27.09   (0.15) 12.39  12.36
----------------------------------------------------------------------
Janus Global Life
 Sciences Fund(3,6)         12/98  19.64  15.83   (2.75)    --  10.72
----------------------------------------------------------------------
Janus Global Technology
 Fund(4,5,6,8)              12/98  21.23  17.87  (17.96)    --   2.09
----------------------------------------------------------------------
Janus Global
 Opportunities Fund(6)       6/01  13.12  18.55      --     --   9.13
======================================================================
Value Funds
======================================================================
Janus Small Cap Value
 Fund - Inv.(2,9)           10/87  15.78  21.65   13.37  15.78  14.69
----------------------------------------------------------------------
Janus Mid Cap Value Fund
 - Inv.(10)                  8/98  18.72  24.11   15.51     --  18.21
======================================================================
Income Funds
======================================================================
Janus Flexible Income
 Fund(11,12,13)              7/87   2.26   4.18    6.22   6.66   7.74
----------------------------------------------------------------------
Janus High-Yield
 Fund(6,11,12,13)           12/95   5.35  10.14    6.25   8.24   8.24
----------------------------------------------------------------------
Janus Short-Term Bond
 Fund(11,12,14)              9/92   0.96   2.81    3.96   5.02   4.75
----------------------------------------------------------------------
Janus Federal Tax-Exempt
 Fund(11,12,14,15)           5/93   2.97   2.48    4.86   4.83   4.67
======================================================================

Janus Adviser Funds - I Shares
Growth Funds
======================================================================
Janus Adviser Forty(3,16)    5/97  26.52  16.62   (2.64)    --  13.31
======================================================================
    Total return includes reinvestment of dividends and capital gains.

    (1) All figures unaudited.
    (2) Closed to new investors.

(3) Returns have sustained significant gains and losses due to market volatility in the healthcare sector.

(4) This Fund has been significantly impacted, either positively or negatively, by investing in initial public offerings (IPOs).

(5) This Fund may have significant exposure to emerging markets which may lead to greater price volatility.

(6) 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.

(7) 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.

(8) Returns have sustained significant gains due to market volatility in the information technology sector.

(9) Returns shown for Janus Small Cap Value Fund prior to April 21, 2003, are those of Berger Small Cap Value Fund.

(10) Returns shown for Janus Mid Cap Value Fund prior to April 21, 2003, are those of Berger Mid Cap Value Fund.

(11) 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.

(12) As of September 30, 2005, the 30-day SEC Yield was 3.83% on Janus Federal Tax-Exempt Fund, 3.93% on Janus Flexible Income Fund, 6.36% on Janus High-Yield Fund and 3.51% on Janus Short-Term Bond Fund.

(13) 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.

(14) 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 as of September 30, 2005, would have been 3.25% and 3.74%, respectively and total returns would have been lower.

(15) 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.

(16) Janus Adviser Forty commenced operations on 8/1/00, after the reorganization of the Retirement Shares of Janus Aspen Series into the Funds. The returns for the reorganized Funds reflect the performance of the Retirement Shares of Janus Aspen Series prior to the reorganization.

Differences between compared investments may include objectives, sales and management fees, liquidity, volatility, tax features and other features, which may result in differences in performance.

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:
             Steve Belgrad, 303-394-7706
                or
             Media:
             Shelley Peterson, 303-316-5625
             Blair Johnson, 720-210-1439

    SOURCE: Janus Capital Group Inc.