Janus Announces First Quarter 2006 Results

Company Release - 4/27/2006 7:50 AM ET
    DENVER--(BUSINESS WIRE)--April 27, 2006--

           First quarter earnings of $0.17 per diluted share

       Long-term net inflows of $3.5 billion for quarter; Third
                consecutive quarter with positive flows

     Investment performance strong over 1-, 3- and 5-year periods

   Quarter marked by $125 million of stock buybacks and purchase of
                   an additional 5% stake of INTECH

         IRS accepts tax-free treatment of DST share exchange

Janus Capital Group Inc. (NYSE: JNS) today reported first quarter net income of $35.3 million, or $0.17 per diluted share, compared with net income of $10.8 million, or $0.05 per diluted share, in the fourth quarter 2005, and $19.6 million, or $0.09 per diluted share, in the first quarter 2005. The company's Investment Management operating margins for the first quarter 2006 were 27.1% compared with 24.6% in the fourth quarter 2005 and 20.6% in the first quarter 2005.

First quarter 2006 results include a $10 million insurance recovery, partially offset by approximately $5 million of non-recurring charges, including facility write-offs, severance and other administrative costs.

Beginning this quarter and for future quarters, Janus will only report GAAP results. For informational purposes, the company previously disclosed adjusted earnings per diluted share of $0.16 and $0.11 for the fourth quarter 2005 and first quarter 2005, respectively.

Flows and Assets Under Management

Average assets under management during the first quarter were $154.4 billion compared with $142.6 billion during the fourth quarter 2005, an 8.3% increase. At March 31, 2006, the company's total assets under management were $158.1 billion compared with $148.5 billion at December 31, 2005. The higher assets in the first quarter reflect long-term net inflows of $3.5 billion, money market net outflows of $0.8 billion and a total of $6.9 billion in market appreciation and fund performance.

Janus' INTECH subsidiary had net inflows of $4.0 billion in the first quarter, and ended the first quarter with more than $50.0 billion in assets under management. Excluding INTECH, Janus' long-term net outflows totaled $0.5 billion in the first quarter 2006 versus long-term net outflows of $0.9 billion and $3.9 billion in the fourth quarter 2005 and first quarter 2005, respectively.

"Our third straight quarter of positive flows reflects the company's steady progress across all parts of our business," said Janus CEO Gary Black. "On the institutional side, we built on our momentum by delivering record sales of nearly $5 billion last quarter. Our positive net flows from financial advisors and fund supermarkets and in our international business were also encouraging signs."

Investment Management

Janus' investment management performance remained strong during the first quarter, driving continued improvement in the company's five-year results. As of March 31, 2006, approximately 72%, 65% and 62% 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-, three- and five-year total-return basis, respectively. The five-year Lipper numbers improved significantly from a year ago, when only 25% of the JIF Funds were in the top half of their peer categories on a total-return basis. (Detailed Lipper rankings and performance data for all JIF funds are on pages 10 - 12.)

"Our investment results are especially encouraging because they're consistently strong across multiple time periods and investment categories," Black said. "Now our five-year performance is nearly as good as our one- and three-year numbers."

At the end of March, 52% of the rated funds in Janus' primary fund family had received either four- or five-star overall ratings from Morningstar and 61% of those funds had earned four- or five-star ratings on a three-year basis (based on risk-adjusted returns). (Detailed Morningstar ratings are on page 13.)

Financial Discussion

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

                                            Three Months Ended
                                    ----------------------------------
                                    March 31,  December 31,  March 31,
                                      2006         2005        2005
                                    ---------- ------------- ---------

Investment Management Segment
------------------------------------
Average Assets (in billions)           $154.4        $142.6    $133.8
Ending AUM (in billions)               $158.1        $148.5    $131.8
Revenues                               $232.5        $225.2    $216.0
Operating Expenses                     $169.6        $169.8    $171.6
Operating Income                        $62.9         $55.4     $44.4
Operating Margin                         27.1%         24.6%     20.6%

Printing and Fulfillment Operating
 Loss                                   $(3.7)       $(23.4)    $(3.1)

Consolidated Net Income                 $35.3         $10.8     $19.6
Diluted Earnings per Share              $0.17         $0.05     $0.09
Shares Repurchased (in millions)          5.7           2.4       7.0
Cost of Shares Repurchased             $125.0         $35.4    $100.0

Investment Management Segment - First Quarter 2006 versus Fourth Quarter 2005

First quarter revenues increased 3.2% to $232.5 million from $225.2 million in the previous quarter. The increase reflects 8.3% higher average assets under management during the fourth quarter partially offset by a decline in performance fee revenue from INTECH, fewer days of accrued fees in the first quarter and the continuing shift in asset mix. First quarter 2006 operating expenses reflect higher employee compensation and benefits, long-term incentive compensation, and asset-driven distribution costs. The increase in employee compensation was driven by first quarter salary adjustments and higher payroll taxes. Long-term incentive compensation increased from the annual grant made in February combined with accelerated amortization of the 2005 and 2006 grants based on anticipated 2006 financial performance. Including the $5 million net benefit discussed earlier, operating expenses were flat quarter to quarter.

Printing and Fulfillment Segment

Janus' printing business, Rapid Solutions Group (RSG), had an operating loss of $3.7 million in the first quarter 2006 compared with a $23.4 million fourth quarter 2005 loss that included a $20 million goodwill impairment charge. RSG's core results were nearly flat quarter to quarter.

Capital and Liquidity

At March 31, 2006, Janus had stockholders' equity of $2.5 billion, cash and investments of $676.9 million and $376.0 million of outstanding debt. As part of its capital and liquidity management, Janus reduced its outstanding shares by 2.1% during the first quarter by repurchasing 5.7 million shares of its common stock at an average price of $21.87 per share and a total cost of $125.0 million. In addition, Janus purchased 5% of INTECH for $90.0 million, increasing its ownership stake to 82.5%.

On February 16, the Internal Revenue Service informed Janus that it had accepted the company's tax-free treatment of the 2003 share exchange transaction between Janus and DST Systems, Inc. (DST). In exchange for 32.3 million shares of DST common stock, Janus received Capital Group Partners (CGP), a corporation that included a printing and graphics design business doing business as RSG and $999 million in cash. Under original representations, the cash and investments held at CGP may not be distributed to Janus and no additional stock or debt repurchases can occur at CGP until at least December 1, 2006, which is the third anniversary of the transaction.

First Quarter 2006 Earnings Call Information

Janus Capital Group will discuss its results during a conference call on Thursday, April 27 at 10 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/ir) 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.

Founded in 1969, Denver-based Janus Capital Group Inc. (Janus) is a recognized leader of growth and risk-managed investment strategies. Our commitment to deliver for investors is rooted in our research-intensive approach and relentless passion to gain a competitive edge.

At the end of March 2006, Janus managed approximately $158 billion in assets for more than four million shareholders, clients and institutions around the globe. Outside the U.S., Janus has offices in London, Milan, Tokyo and Hong Kong. Janus Capital Group consists of Janus Capital Management LLC, Enhanced Investment Technologies, LLC (INTECH) and Capital Group Partners, Inc. (doing business as Rapid Solutions Group). 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 1-800-525-3713 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 (4/06).

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, 2005, 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
              (dollars in millions, except per share data)

                                           Three Months Ended
                                   -----------------------------------
                                   March 31,  December 31,  March 31,
                                     2006        2005         2005
                                   ---------- -----------   ----------
Investment Management Revenues:
  Investment management fees          $185.6      $176.0       $165.8
  Performance fees                       4.2         7.3          7.3
  Shareowner servicing fees and
   other                                42.7        41.9         42.9
                                   ---------- -----------   ----------
   Total                               232.5       225.2        216.0
                                   ---------- -----------   ----------

Investment Management Operating
 Expenses:
  Employee compensation and
   benefits                             83.4        78.7         71.3
  Long-term incentive compensation      22.0        19.5         19.0
  Marketing and advertising              5.4         6.3          9.7
  Distribution                          26.8        24.4         27.1
  Depreciation and amortization          8.3         7.9         10.2
  General, administrative and
   occupancy                            33.7        33.0         32.1
  Restructuring and impairments            -           -          5.5
  Mutual fund investigation
   recoveries, net of charges          (10.0)          -         (3.3)
                                   ---------- -----------   ----------
   Total                               169.6       169.8        171.6
                                   ---------- -----------   ----------

Investment Management Operating
 Income                                 62.9        55.4         44.4

Printing and Fulfillment Segment:
  Revenue                               23.6        22.1         23.0
  Operating expenses                    25.4        23.6         24.2
  Goodwill impairment                      -        20.0            -
  Intangibles amortization               1.9         1.9          1.9
                                   ---------- -----------   ----------
Printing and Fulfillment Operating
 Loss                                   (3.7)      (23.4)        (3.1)

Interest expense                        (7.0)       (7.0)        (7.2)
Other income, net                        9.0        10.7          9.3
Income tax provision                   (22.2)      (20.3)       (21.4)
Equity in earnings of
 unconsolidated affiliate                1.7         1.8          1.7
Minority interest in consolidated
 earnings                               (5.4)       (6.4)        (4.1)
                                   ---------- -----------   ----------

Net Income                             $35.3       $10.8        $19.6
                                   ========== ===========   ==========

Basic Earnings per Share
  Weighted average shares
   outstanding (in millions)           210.1       211.3        226.0
  Basic earnings per share             $0.17       $0.05        $0.09

Diluted Earnings per Share
  Weighted average shares
   outstanding (in millions)           211.7       212.3        227.1
  Diluted earnings per share           $0.17       $0.05        $0.09

Average Assets Under Management (in
 billions)                            $154.4      $142.6       $133.8
                       JANUS CAPITAL GROUP INC.
           UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                        (dollars in millions)

                                             March 31,   December 31,
                                               2006          2005
                                            -----------  -------------
 Assets
  Cash and cash equivalents                     $327.2         $552.6
  Investments                                    349.7          334.1
  Other assets                                   317.8          285.5
  Property and equipment, net                     61.4           64.7
  Intangibles and goodwill, net                2,477.4        2,391.6
                                            -----------  -------------
   Total Assets                               $3,533.5       $3,628.5
                                            ===========  =============

 Liabilities and Stockholders' Equity
  Debt                                          $376.0         $376.3
  Other liabilities                              213.2          246.9
  Deferred income taxes                          425.0          424.1
  Stockholders' equity                         2,519.3        2,581.2
                                            -----------  -------------
   Total Liabilities and Stockholders'
    Equity                                    $3,533.5       $3,628.5
                                            ===========  =============


                   UNAUDITED CONDENSED CONSOLIDATED
                        CASH FLOW INFORMATION
                        (dollars in millions)

                                          Three Months Ended
                                --------------------------------------
                                 March 31,   December 31,   March 31,
 Cash provided by (used in)        2006         2005          2005
                                ----------- -------------- -----------
  Operating activities               $32.2          $70.8       $43.8
  Investing activities              (128.2)         (15.6)       (5.8)
  Financing activities              (129.4)         (28.6)     (110.3)
                                ----------- -------------- -----------
 Net change during period          $(225.4)         $26.6      $(72.3)
                                =========== ============== ===========
                       JANUS CAPITAL GROUP INC.
               ASSETS & FLOWS BY INVESTMENT DISCIPLINE
                        (dollars in billions)

                                           Three Months Ended
                                  ------------------------------------
                                  March 31,   December 31,  March 31,
                                     2006         2005         2005
                                  ----------  ------------  ----------
Growth/Blend
  Beginning of period assets          $68.5         $66.7       $71.4
  Sales                                 3.5           2.8         2.2
  Redemptions                           3.6           3.1         4.8
                                  ----------  ------------  ----------
  Net Sales (redemptions)              (0.1)         (0.3)       (2.6)
  Market appreciation                   3.1           2.1        (2.5)
                                  ----------  ------------  ----------
  End of period assets                $71.5         $68.5       $66.3
                                  ==========  ============  ==========

Global/International
  Beginning of period assets          $12.2         $11.7       $14.6
  Sales                                 0.9           0.5         0.4
  Redemptions                          (1.1)          0.8         1.5
                                  ----------  ------------  ----------
  Net Sales (redemptions)              (0.2)         (0.3)       (1.2)
  Market appreciation                   1.3           0.7           -
                                  ----------  ------------  ----------
  End of period assets                $13.3         $12.2       $13.4
                                  ==========  ============  ==========

Mathematical/Quantitative
  Beginning of period assets          $44.7         $38.2       $25.8
  Sales                                 5.7           5.8         2.4
  Redemptions                           1.7           0.6         0.4
                                  ----------  ------------  ----------
  Net Sales (redemptions)               4.0           5.2         2.0
  Market appreciation                   1.8           1.4        (0.3)
                                  ----------  ------------  ----------
  End of period assets                $50.6         $44.7       $27.6
                                  ==========  ============  ==========

Fixed Income
  Beginning of period assets           $5.2          $5.4        $6.2
  Sales                                 0.2           0.2         0.4
  Redemptions                           0.4           0.4         0.5
                                  ----------  ------------  ----------
  Net Sales (redemptions)              (0.3)         (0.3)       (0.2)
  Market appreciation                     -             -        (0.1)
                                  ----------  ------------  ----------
  End of period assets                 $4.9          $5.2        $5.9
                                  ==========  ============  ==========

Value
  Beginning of period assets          $10.4         $10.3       $10.2
  Sales                                 1.0           0.8         1.0
  Redemptions                           1.0           0.8         1.0
                                  ----------  ------------  ----------
  Net Sales (redemptions)               0.1             -         0.1
  Market appreciation                   0.6           0.1           -
                                  ----------  ------------  ----------
  End of period assets                $11.1         $10.4       $10.2
                                  ==========  ============  ==========

Money Market
  Beginning of period assets           $7.5          $7.0       $10.8
  Sales                                 9.5           8.4        12.3
  Redemptions                          10.4           7.9        14.6
                                  ----------  ------------  ----------
  Net Sales (redemptions)              (0.8)          0.5        (2.3)
  Market appreciation                     -             -           -
                                  ----------  ------------  ----------
  End of period assets                 $6.7          $7.5        $8.5
                                  ==========  ============  ==========

Total
  Beginning of period assets         $148.5        $139.4      $139.0
  Sales                                20.8          18.5        18.6
  Redemptions                          18.2          13.7        22.8
                                  ----------  ------------  ----------
  Net Sales (redemptions)               2.6           4.8        (4.2)
  Market appreciation                   6.9           4.3        (3.0)
                                  ----------  ------------  ----------
  End of period assets               $158.1        $148.5      $131.8
                                  ==========  ============  ==========

Total Excluding Money Markets
  Beginning of period assets         $141.0        $132.4      $128.2
  Sales                                11.3          10.1         6.3
  Redemptions                           7.8           5.8         8.2
                                  ----------  ------------  ----------
  Net Sales (redemptions)               3.5           4.3        (1.9)
  Market appreciation                   6.9           4.3        (3.0)
                                  ----------  ------------  ----------
  End of period assets               $151.4        $141.0      $123.3
                                  ==========  ============  ==========

Total Excluding Mathematical/Quantitative &
 Money Markets
  Beginning of period assets          $96.2         $94.2      $102.4
  Sales                                 5.6           4.3         3.9
  Redemptions                           6.2           5.1         7.8
                                  ----------  ------------  ----------
  Net Sales (redemptions)              (0.5)         (0.9)       (3.9)
  Market appreciation                   5.1           2.9        (2.7)
                                  ----------  ------------  ----------
  End of period assets               $100.8         $96.2       $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 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 December 31, 2005
                 -----------------------------------------------------
                                              Investment    Printing
                   Investment     Non-GAAP    Management       and
                   Management    Adjustments   Adjusted    Fulfillment
                 --------------- ----------- ------------- -----------
Revenues                $225.2        $-          $225.2      $22.1

Long-term
 incentive
 compensation             19.5      (1.2)(1)        18.3          -
Marketing and
 advertising               6.3      (2.0)(2)         4.3          -
General,
 administrative
 and occupancy            33.0      (0.9)(1)        32.1        0.9
Impairments                  -         -               -       20.0
Operating
 expenses                111.0         -           111.0       24.6
                 --------------  --------    ------------  ---------
     Total               169.8      (4.1)          165.7       45.5
                 --------------  --------    ------------  ---------

Operating
 income
 (loss)                   55.4       4.1            59.5      (23.4)
Operating
 margin                   24.6%                     26.4%    -105.9%

Other income
 (expense)                (1.3)        -            (1.3)       0.4
Income tax
 benefit
 (provision)             (21.2)     (1.6)(3)       (22.8)       0.9
                 --------------  --------    ------------  ---------
Net income
 (loss)                  $32.9      $2.5           $35.4     $(22.1)
                 ==============  ========    ============  =========

Diluted
 earnings
 (loss) per
 share                   $0.15     $0.01           $0.17     $(0.10)

Average AUM
 (billions)             $142.6


                     Three Months Ended December 31, 2005
               ------------------------------------------------
                                   Printing
                                      and
                  Non-GAAP        Fulfillment        Adjusted
                 Adjustments        Adjusted          Total
               --------------- ------------------  ------------
Revenues                $-               $22.1          $247.3

Long-term
 incentive
 compensation            -                   -            18.3
Marketing and
 advertising             -                   -             4.3
General,
 administrative
 and occupancy           -                 0.9            33.0
Impairments          (20.0)(4)               -               -
Operating
 expenses                -                24.6           135.6
               ------------    ----------------    ------------
     Total           (20.0)               25.5           191.2
               ------------    ----------------    ------------

Operating
 income
 (loss)               20.0                (3.4)           56.1
Operating
 margin                                  -15.4%           22.7%

Other income
 (expense)               -                 0.4            (0.9)
Income tax
 benefit
 (provision)             -                 0.9           (21.9)
               ------------    ----------------    ------------
Net income
 (loss)              $20.0               $(2.1)          $33.3
               ============    ================    ============

Diluted
 earnings
 (loss) per
 share               $0.09              $(0.01)          $0.16

Average AUM
 (billions)


                          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)(4)        -           -         -
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 (3)    (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


(1) Severance and other administrative costs associated with the
    August 2005 cost reduction plan.

(2) Costs associated with the settlement-mandated fund proxy mailing.

(3) Tax effect of adjustments.

(4) 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.

(5) Insurance recovery of $6.0 million for costs incurred related to
    the mutual fund investigation, net of ongoing legal fees.

(6) Realized gain on the sale of investments. In the first quarter of
    2005, the Company reduced its seed capital investments by $22.8
    million which which resulted in $2.5 million of after-tax gains.
Janus Investment Fund                    Lipper Rankings Based
                                     on Total Returns as of 3/31/06
                                 -------------------------------------
                                       1-Year             3-Year
                                 ------------------ ------------------
                                            Rank /             Rank /
               PM      Lipper    Percentile Total   Percentile Total
             Inception  Category   Rank(%)   Funds    Rank(%)  Funds
            ----------------------------------------------------------
Growth
 Funds
----------------------------------------------------------------------
Janus Fund             Large-Cap
                       Growth
              Jan-06    Funds       64     439/694     34     198/593
Janus                  Large-Cap
Twenty                 Growth
 Fund(1)      Aug-97    Funds        8      55/694      2       6/593
Janus                  Large-Cap
Mercury                Growth
 Fund         Jan-06    Funds       36     249/694     10      56/593
Janus                  Multi-Cap
Olympus                Growth
 Fund         Aug-97    Funds       22      89/418     53     190/359
Janus                  Mid-Cap
Enterprise             Growth
 Fund         Jan-02    Funds       53     294/556     25     113/460
Janus                  Small-Cap
Venture                Growth
 Fund(1)      Jan-01    Funds       55     292/538      9      38/455
Janus                  Multi-Cap
Orion                  Growth
 Fund         Jun-00    Funds        4      16/418      1       3/359
Janus                  Small-Cap
 Triton                Growth
              Jan-06    Funds        4      17/538      -           -
Janus                  Multi-Cap
 Research              Growth
              Feb-05    Funds        7      28/418      -           -
----------------------------------------------------------------------
Core Funds
----------------------------------------------------------------------
Janus
Growth
and                    Large-Cap
Income                 Core
 Fund         Dec-03    Funds        3      24/884     10      68/751
Janus
Balanced               Balanced
 Fund         Apr-05    Funds        7      44/665     56     267/481
Janus                  Multi-Cap
Contrarian             Core
 Fund         Feb-00    Funds        1       1/875      1       2/608
Janus Core             Large-Cap
Equity                 Core
 Fund         Apr-05    Funds        1       5/884      4      25/751
INTECH
Risk-                  Multi-Cap
Managed                Core
 Stock        Feb-03    Funds       40     350/875     21     125/608
----------------------------------------------------------------------
Global/
Inter-
national
 Funds
----------------------------------------------------------------------
Janus
Worldwide              Global
 Fund         Jun-04    Funds       94     335/356     94     273/291
Janus                  Inter-
Overseas               national
 Fund         Jun-03    Funds        1       1/897      1       4/768
Janus
Global                 Health/
Life                   Biotech-
Sciences               nology
 Fund         Dec-98    Funds       34      61/179     28      46/165
Janus
 Global                Science &
 Technology            Technology
 Fund         Jan-06    Funds       34      99/291     51     133/264
Janus
Global
Opport-
unities                Global
 Fund         Jun-01    Funds       99     353/356     39     111/291
----------------------------------------------------------------------
Value
 Funds
----------------------------------------------------------------------
Janus
Mid
Cap
Value                  Mid-Cap
Fund                    Value
- Inv(2)      Aug-98     Funds      65     170/263     56     119/214
Janus
Small
Cap
Value                  Small-Cap
Fund -                  Core
 Inv.(1,2)    Feb-97     Funds      91     568/626     91     447/493
----------------------------------------------------------------------
Fixed
Income
 Funds
----------------------------------------------------------------------
Janus                  Inter-
Flexible               mediate
Bond                   Inv Grade
 Fund                  Debt
              Dec-91    Funds       34     158/470     33     133/404
Janus                  High
High-                  Current
Yield                  Yield
 Fund         Dec-03    Funds       36     155/435     85     323/382
Janus
Short-                 Short
Term                   Investment
Bond                   Grade Debt
 Fund         Jun-03    Funds       28      63/224     17      30/181
Janus
Federal
Tax-                   General
Exempt                 Muni Debt
 Fund         Feb-05    Funds       48     123/256     86     215/249
----------------------------------------------------------------------


Janus Investment Fund                    Lipper Rankings Based
                                     on Total Returns as of 3/31/06
                                 -------------------------------------
                                       5-Year            10-Year
                                 ------------------ ------------------
                                            Rank /             Rank /
               PM      Lipper    Percentile Total   Percentile Total
             Inception  Category   Rank(%)   Funds    Rank(%)  Funds
            ---------- -----------------------------------------------
Growth
 Funds
----------------------------------------------------------------------
Janus Fund             Large-Cap
                       Growth
              Jan-06    Funds       70     335/479     50      82/163
Janus                  Large-Cap
Twenty                 Growth
 Fund(1)      Aug-97    Funds        8      38/479      2       2/163
Janus                  Large-Cap
Mercury                Growth
 Fund         Jan-06    Funds       42     198/479     10      15/163
Janus                  Multi-Cap
Olympus                Growth
 Fund         Aug-97    Funds       68     194/288     19       17/93
Janus                  Mid-Cap
Enterprise             Growth
 Fund         Jan-02    Funds       69     242/353     71      89/126
Janus                  Small-Cap
Venture                Growth
 Fund(1)      Jan-01    Funds       15      55/368     38      45/118
Janus                  Multi-Cap
Orion                  Growth
 Fund         Jun-00    Funds        6      15/288      -           -
Janus                  Small-Cap
 Triton                Growth
              Jan-06    Funds        -           -      -           -
Janus                  Multi-Cap
 Research              Growth
              Feb-05    Funds        -           -      -           -
----------------------------------------------------------------------
Core Funds
----------------------------------------------------------------------
Janus
Growth
and                    Large-Cap
Income                 Core
 Fund         Dec-03    Funds       12      73/619      3       5/238
Janus
Balanced               Balanced
 Fund         Apr-05    Funds       27     104/393      7      12/185
Janus                  Multi-Cap
Contrarian             Core
 Fund         Feb-00    Funds        3      10/438      -           -
Janus Core             Large-Cap
Equity                 Core
 Fund         Apr-05    Funds        3      14/619      -           -
INTECH
Risk-                  Multi-Cap
Managed                Core
 Stock        Feb-03    Funds        -           -      -           -
----------------------------------------------------------------------
Global/
Inter-
national
 Funds
----------------------------------------------------------------------
Janus
Worldwide              Global
 Fund         Jun-04    Funds       98     215/219     65       53/81
Janus                  Inter-
Overseas               national
 Fund         Jun-03    Funds       14      80/586      4       7/225
Janus
Global                 Health/
Life                   Biotech-
Sciences               nology
 Fund         Dec-98    Funds       38      45/119      -           -
Janus
 Global                Science &
 Technology            Technology
 Fund         Jan-06    Funds       67     151/226      -           -
Janus
Global
Opport-
unities                Global
 Fund         Jun-01    Funds        -           -      -           -
----------------------------------------------------------------------
Value
 Funds
----------------------------------------------------------------------
Janus
Mid
Cap
Value                  Mid-Cap
Fund                    Value
- Inv(2)      Aug-98     Funds      32      44/139      -           -
Janus
Small
Cap
Value                  Small-Cap
Fund -                  Core
 Inv.(1,2)    Feb-97     Funds      65     243/373      -           -
----------------------------------------------------------------------
Fixed
Income
 Funds
----------------------------------------------------------------------
Janus                  Inter-
Flexible               mediate
Bond                   Inv Grade
 Fund                  Debt
              Dec-91    Funds       26      82/320     22      31/145
Janus                  High
High-                  Current
Yield                  Yield
 Fund         Dec-03    Funds       55     169/310      7       7/109
Janus
Short-                 Short
Term                   Investment
Bond                   Grade Debt
 Fund         Jun-03    Funds       47      60/129     22       14/65
Janus
Federal
Tax-                   General
Exempt                 Muni Debt
 Fund         Feb-05    Funds       76     166/220     82     117/ 42
----------------------------------------------------------------------


Janus Investment Fund               Lipper Rankings Based
                                   on Total Returns as of
                                            3/31/06
                                 ---------------------------
                                     Since PM Inception
                                 ---------------------------

               PM      Lipper      Percentile     Rank /
             Inception  Category    Rank (%)    Total Funds
            ------------------------------------------------
Growth
 Funds
------------------------------------------------------------
Janus Fund             Large-Cap
                       Growth
              Jan-06    Funds         ##
Janus                  Large-Cap
Twenty                 Growth
 Fund(1)      Aug-97    Funds          4              9/231
Janus                  Large-Cap
Mercury                Growth
 Fund         Jan-06    Funds         ##
Janus                  Multi-Cap
Olympus                Growth
 Fund         Aug-97    Funds         15             20/134
Janus                  Mid-Cap
Enterprise             Growth
 Fund         Jan-02    Funds         18             70/399
Janus                  Small-Cap
Venture                Growth
 Fund(1)      Jan-01    Funds         27             93/353
Janus                  Multi-Cap
Orion                  Growth
 Fund         Jun-00    Funds         30             67/230
Janus                  Small-Cap
 Triton                Growth
              Jan-06    Funds         ##
Janus                  Multi-Cap
 Research              Growth
              Feb-05    Funds          7             26/411
------------------------------------------------------------
Core Funds
------------------------------------------------------------
Janus
Growth
and                    Large-Cap
Income                 Core
 Fund         Dec-03    Funds          2              9/802
Janus
Balanced               Balanced
 Fund         Apr-05    Funds         ##
Janus                  Multi-Cap
Contrarian             Core
 Fund         Feb-00    Funds          9             28/346
Janus Core             Large-Cap
Equity                 Core
 Fund         Apr-05    Funds         ##
INTECH
Risk-                  Multi-Cap
Managed                Core
 Stock        Feb-03    Funds         24            140/607
------------------------------------------------------------
Global/
Inter-
national
 Funds
------------------------------------------------------------
Janus
Worldwide              Global
 Fund         Jun-04    Funds         86            278/326
Janus                  Inter-
Overseas               national
 Fund         Jun-03    Funds          1              2/781
Janus
Global                 Health/
Life                   Biotech-
Sciences               nology
 Fund         Dec-98    Funds         31              15/48
Janus
 Global                Science &
 Technology            Technology
 Fund         Jan-06    Funds         ##
Janus
Global
Opport-
unities                Global
 Fund         Jun-01    Funds         19             42/228
------------------------------------------------------------
Value
 Funds
------------------------------------------------------------
Janus
Mid
Cap
Value                  Mid-Cap
Fund                    Value
- Inv(2)      Aug-98     Funds         5               4/81
Janus
Small
Cap
Value                  Small-Cap
Fund -                  Core
 Inv.(1,2)    Feb-97     Funds        18             25/140
------------------------------------------------------------
Fixed
Income
 Funds
------------------------------------------------------------
Janus                  Inter-
Flexible               mediate
Bond                   Inv Grade
 Fund                  Debt
              Dec-91    Funds          4               2/57
Janus                  High
High-                  Current
Yield                  Yield
 Fund         Dec-03    Funds         48            195/407
Janus
Short-                 Short
Term                   Investment
Bond                   Grade Debt
 Fund         Jun-03    Funds         20             36/185
Janus
Federal
Tax-                   General
Exempt                 Muni Debt
 Fund         Feb-05    Funds         53            135/256
------------------------------------------------------------

                        Percent of JIF Funds per Lipper Quartile
                                 based on Total Returns
                   ---------------------------------------------------
                                                          Since PM
                    1-Year   3-Year   5-Year   10-Year     Inception
----------------------------------------------------------------------
1st Quartile          40.0%    47.8%     33.3%    64.3%       68.4%
2nd Quartile          32.0%    17.4%     28.6%    14.3%       21.1%
3rd Quartile          16.0%    17.4%     28.6%    14.3%        5.3%
4th Quartile          12.0%    17.4%      9.5%     7.1%        5.3%
----------------------------------------------------------------------

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. If an
expense waiver was in effect, it may have had a material effect on the
total return or yield for the period.

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

Notes:

(1) Closed to new investors

(2) Ranking is for the investor share class only; other classes may
    have different performance characteristics.

## The Fund's since PM-Inception ranking is not available.
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 1-800-975-9932 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 3/31/06(1)
                                  ------------------------------------
                                                                Life
                       Inception                                  of
                         Date     1 Year  3 Year 5 Year 10 Year  Fund
                       --------   ------ ------- ------ ------- ------
Growth Funds
----------------------------------------------------------------------
Janus Fund(2)             2/70    12.80   15.50  (0.25)   6.68  13.88
Janus Twenty Fund(3,4)    4/85    21.41   20.70   4.53   10.68  13.46
Janus Mercury Fund(5)     5/93    15.35   17.95   1.34    8.99  12.78
Janus Olympus Fund       12/95    24.43   19.67   2.59   11.07  11.95
Janus Enterprise Fund     9/92    23.42   25.35   4.74    7.03  11.72
Janus Venture
 Fund(3,6)                4/85    24.90   31.29  12.38    9.95  13.92
Janus Orion
 Fund(4,7,8,9,10)         6/00    34.09   31.81  11.41      --  (1.17)
Janus Triton(7,11)        2/05    39.27      --     --      --  33.28
Janus Research(7)         2/05    31.71      --     --      --  26.54
----------------------------------------------------------------------
Core Funds
----------------------------------------------------------------------
Janus Growth and Income
 Fund                     5/91    20.62   19.11   4.80   12.05  13.79
Janus Balanced Fund       9/92    13.84   11.78   5.45   10.25  11.41
Janus Contrarian
 Fund(7,9,12)             2/00    31.88   35.15  11.64      --   9.61
Janus Core Equity
 Fund(12)                 6/96    26.43   21.41   6.93      --  13.43
INTECH Risk-Managed
 Stock(12,13,14,15)       2/03    14.95   21.50     --      --  20.93
----------------------------------------------------------------------
International/Global
 Funds
----------------------------------------------------------------------
Janus Worldwide
 Fund(13)                 5/91    11.67   16.66   0.04    6.95  11.07
Janus Overseas
 Fund(7,9,12,13)          5/94    58.06   42.13  12.66   14.06  14.37
Janus Global Life
 Sciences Fund(4,12,13)  12/98    22.56   19.03   5.96      --  10.89
Janus Global Technology
 Fund(12,13,16,17)       12/98    28.12   22.11  (1.86)     --   3.78
Janus Global
 Opportunities Fund       6/01     8.52   25.00     --      --   9.65
----------------------------------------------------------------------
Value Funds
----------------------------------------------------------------------
Janus Small Cap Value
 Fund - Inv.(3,8,18)     10/87    16.11   23.61  12.38   16.06  14.73
Janus Mid Cap Value
 Fund  - Inv.(8,12,19)    8/98    15.98   25.49  14.30      --  18.08
----------------------------------------------------------------------
Income Funds
----------------------------------------------------------------------
Janus Flexible Income
 Fund(12,20,21,22)        7/87     2.12    3.08   5.04    6.14   7.52
Janus High-Yield
 Fund(8,12,20,21,22)     12/95     7.28    8.80   6.82    7.66   8.21
Janus Short-Term Bond
 Fund(12,20,21,23)        9/92     2.74    2.35   3.14    4.84   4.66
Janus Federal Tax-
 Exempt
 Fund(12,20,21,23,24)     5/93     3.53    2.56   3.92    4.41   4.54
----------------------------------------------------------------------

Notes:

(1)  All figures unaudited.

(2) Effective February 1, 2006, Blaine Rollins is no longer the
    portfolio manager of Janus Fund, and David Corkins is now the
    portfolio manager.

(3)  Closed to new investors.

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

(5) Effective February 1, 2006, David Corkins is no longer the
    portfolio manager of Janus Mercury Fund, and a research team now
    selects the investments for Janus Mercury Fund led by Director of
    Research, James Goff.

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

(7) This Fund may have significant exposure to emerging markets. In
    general, emerging market investments have historically been
    subject to significant gains and/or losses. As such, the Fund's
    returns and NAV may be subject to such volatility.

(8) Due to certain investment strategies, some funds may have an
    increased position in cash.

(9) Returns have sustained significant gains due to investments in
    India and/or Brazil. As of 12/31/05, the Overseas Fund held
    approximately 13.41% of its assets in Indian securities, and
    11.21% of its assets in Brazilian securities; the Contrarian Fund
    held approximately 17.5% of its assets in Indian securities; and
    the Orion Fund held approximately 9.8% of its assets in Brazilian
    securities. As a result, returns and NAV may be affected to a
    large degree by fluctuations in currency exchange rates or
    political or economic conditions in India and/or Brazil. Holdings
    are subject to change without notice.

(10) Returns have sustained significant gains due to market volatility
    in the financials sector.

(11) Effective February 1, 2006, Ron Sachs is no longer the portfolio
    manager of Janus Triton Fund, and Blaine Rollins is now the
    portfolio manager.

(12) The Fund will invest at least 80% of its net assets in the type
    of securities described by its name.

(13) 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.

(14) For certain periods, the Fund's performance reflects the effect
    of expense wavers. Without the effect of these expense wavers, the
    performance shown would have been lower.

(15) Effective February 28, 2006, Janus Risk-Managed Stock Fund
    changed its name to INTECH Risk-Managed Stock Fund.

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

(17) Effective February 1, 2006, Mike Lu is no longer the portfolio
    manager of Janus Global Technology Fund, and Brad Slingerlend and
    Barney Wilson are now leading the Janus Technology Team in
    selecting investments for the fund.

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

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

(20) 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.

(21) As of March 31, 2006, the 30-day SEC Yield was 4.06% on Janus
    Federal Tax-Exempt Fund, 4.24% on Janus Flexible Bond Fund, 6.73%
    on Janus High-Yield Fund and 4.13% on Janus Short-Term Bond Fund.

(22) 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.

(23) 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, 2007. Without such waivers, Janus Short-Term Bond Fund
    and Janus Federal Tax-Exempt Fund's yield as of March 31, 2006
    would have been 3.66% and 3.63%, respectively and total returns
    would have been lower.

(24) 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.

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.
Janus Investment Fund ("JIF")
as of 3/31/2006

The Overall Morningstar Rating(TM) is derived from a weighted average
of the performance figures associated with its three-, five-, and
ten-year (if applicable) Morningstar Rating(TM) metrics.


                           Overall   Three-Year  Five-Year   Ten-Year
                            Rating     Rating     Rating     Rating
                          ---------- ----------  ---------- ----------
                                 #           #          #           #
                         Stars   of  Stars  of   Stars of   Stars  of
     Fund      Category         Funds      Funds      Funds      Funds
----------------------------------------------------------------------
Janus Fund     Large
                Growth
                Funds        3  1350    3  1350    2  1077    3   389
Janus          Mid-Cap
 Enterprise     Growth
 Fund           Funds        2   796    4   796    2   622    2   219
Janus Growth   Large
 and Income     Growth
 Fund           Funds        5  1350    4  1350    4  1077    5   389
Janus Mercury  Large
 Fund           Growth
                Funds        3  1350    4  1350    3  1077    3   389
Janus Olympus  Large
 Fund           Growth
                Funds        4  1350    4  1350    3  1077    4   389
Janus Orion    Mid-Cap
 Fund           Growth
                Funds        4   796    5   796    4   622        N/A
Janus Twenty   Large
 Fund(1)        Growth
                Funds        4  1350    5  1350    4  1077    4   389
Janus Venture  Small
 Fund(1)        Growth
                Funds        3   657    4   657    3   524    3   182
Janus Triton   Small
 Fund           Growth
                Funds            N/A        N/A        N/A        N/A
Janus Research Large
 Fund           Growth
                Funds            N/A        N/A        N/A        N/A
Janus Global   Specialty-
 Life Sciences  Health
 Fund           Funds        3   198    4   198    3   139        N/A
Janus Global   Specialty-
 Technology     Technology
 Fund           Funds        3   298    3   298    3   256        N/A
Janus Overseas Foreign
 Fund           Large
                Growth
                Funds        4   194    5   194    4   150    4    64
Janus          World Stock
 Worldwide      Funds
 Fund                        2   396    1   396    1   301    2   129
Janus Global   World Stock
 Opportunities  Funds        3   396    3   396        N/A        N/A
Janus Balanced Moderate
 Fund           Allocation
                Funds        4   814    3   814    4   646    4   301
INTECH Risk-   Large Blend
 Managed Stock  Funds        5  1478    5  1478        N/A        N/A
Janus Core     Large Blend
 Equity Fund    Funds        4  1478    5  1478    4  1162        N/A
Janus          Large Blend
 Contrarian     Funds
 Fund                        5  1478    5  1478    5  1162        N/A
Janus Mid Cap  Mid-Cap
 Value Fund -   Value
 Investor       Funds
 Shares(2)                   4   262    3   262    4   158        N/A
Janus Small    Small Value
 Cap Value      Funds
 Fund -
 Investor
 Shares(1)(2)                2   284    2   284    2   202    4    64
Janus Federal  Muni
 Tax-Exempt     National
 Fund           Long Funds   2   299    2   299    2   276    2   196
Janus Flexible Inter-
 Bond Fund     mediate-
               Term Bond
                Funds        4   900    4   900    4   707    4   356
Janus High-    High Yield
 Yield Fund     Bond Funds   4   459    2   459    3   378    5   140
Janus Short-   Short-Term
 Term Bond      Bond Funds
 Fund                        3   322    4   322    3   235    3   137
----------------------------------------------------------------------
Percent of funds rated
4 / 5 Stars                  52.2%      60.9%      42.9%      53.3%


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

For each fund with at least a three-year history, Morningstar
calculates a Morningstar RatingTM based on a Morningstar Risk-Adjusted
Return measure that accounts for variation in a fund's monthly
performance (including the effects of sales charges, loads, and
redemption fees), placing more emphasis on downward variations and
rewarding consistent performance. The top 10% of the funds in each
category receive 5 stars, the next 22.5% receive 4 stars, the next 35%
receive 3 stars, the next 22.5% receive 2 stars and the bottom 10%
receive 1 star. (Each share class is counted as a fraction of one fund
within this scale and rated separately, which may cause slight
variations in the distribution percentages.)

Notes:
(1)  Closed to new investors

(2) Ranking is for the investor share class only; other classes may
    have different performance characteristics.
    CONTACT: Janus Capital Group Inc.
             Investor Relations Contact:
             Steve Belgrad, 303-394-7706
             or
             Media Contacts:
             Shelley Peterson, 303-316-5625
             Blair Johnson, 720-210-1439

    SOURCE: Janus Capital Group Inc.