Janus Announces Second Quarter 2006 Results

Company Release - 7/27/2006 7:55 AM ET

DENVER--(BUSINESS WIRE)--July 27, 2006--

Janus Capital Group Inc. (NYSE: JNS):

    --  Second quarter earnings of $0.15 per diluted share

    --  Long-term net outflows of $400 million for quarter

    --  Strongest 1- and 3-year relative investment performance in
        five years

    --  Company buys back $105 million of its stock during quarter

Janus Capital Group Inc. (NYSE: JNS) today reported second quarter net income of $31.1 million, or $0.15 per diluted share, compared with net income of $35.3 million, or $0.17 per diluted share, in the first quarter 2006, and $25.7 million, or $0.12 per diluted share, in the second quarter 2005. The company's investment management operating margins for the second quarter 2006 were 24.6% compared with 27.1% in the first quarter 2006 and 21.0% in the second quarter 2005. As previously disclosed, first quarter 2006 results included a $5 million net benefit from an insurance recovery that was partially offset by non-recurring charges.

Flows and Assets Under Management

Average assets under management during the second quarter were nearly flat at $154.0 billion compared with $154.4 billion during the first quarter 2006. At June 30, 2006, the company's total assets under management were $153.4 billion compared with $158.1 billion at March 31, 2006. The lower assets at the end of the second quarter reflect long-term net outflows of $0.4 billion, money market net inflows of $1.2 billion and $5.5 billion in market depreciation and fund performance.

Janus' INTECH subsidiary had net inflows of $2.6 billion in the second quarter compared with net inflows of $4.0 billion in the first quarter 2006. Excluding INTECH, Janus' long-term net outflows totaled $3.0 billion in the second quarter 2006 versus long-term net outflows of $0.5 billion in the first quarter 2006. Approximately $1.2 billion of the long-term net outflows during the second quarter came from small-cap value products.

"Despite the downturn in the market and this quarter's flows, Janus has come a long way," said CEO Gary Black. "If we keep delivering consistently strong performance, I'm confident our investments in expanding our distribution will pay off."

Investment Management

Janus' investment management performance remained strong during the first quarter, driving continued improvement in the company's five-year results. As of June 30, 2006, approximately 84%, 78% and 64% 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. (Detailed Lipper rankings and performance data for all JIF funds are on pages 9 - 12.)

"Our relative performance is the best it's been in more than five years," Black said. "Being able to deliver consistent results through all market cycles is our top priority -- and much of our success is due to our rigorous research and disciplined investment process."(1)

At the end of June, 57% 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 12.)

Financial Discussion

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

                                              Three Months Ended
                                        ------------------------------
                                         June 30,  March 31,  June 30,
                                          2006       2006      2005
                                        ---------- ---------- --------
Investment Management Segment
---------------------------------
Average Assets (in billions)               $154.0     $154.4   $129.3
Ending AUM (in billions)                   $153.4     $158.1   $130.3
Revenues                                   $233.1     $232.5   $208.7
Operating Expenses                         $175.8     $169.6   $164.8
Operating Income                            $57.3      $62.9    $43.9
Operating Margin                             24.6%      27.1%    21.0%

Printing and Fulfillment
 Operating Loss                             $(4.1)     $(3.7)   $(4.1)

Consolidated Net Income                     $31.1      $35.3    $25.7
Diluted Earnings per Share                  $0.15      $0.17    $0.12
Shares Repurchased (in millions)              5.3        5.7      3.8
Cost of Shares Repurchased                 $104.9     $125.0    $55.3

Investment Management Segment - Second Quarter 2006 versus First Quarter 2006

Second quarter revenues of $233.1 million were up slightly from the $232.5 million in the previous quarter. Second quarter 2006 operating expenses totaled $175.8 million, an increase of $6.2 million from the first quarter. Approximately $5.0 million of the increased expenses came from the net credit recorded in the first quarter and discussed on the first page of this release. The remaining $1.2 million increase primarily reflects higher long-term incentive compensation and marketing costs, offset by lower employee compensation and benefits.

Printing and Fulfillment Segment

Janus' printing business, Rapid Solutions Group (RSG), had an operating loss of $4.1 million in the second quarter of 2006 compared with a $3.7 million loss in the previous quarter. RSG's core business results were nearly flat quarter to quarter.

Capital and Liquidity

At June 30, 2006, Janus had stockholders' equity of $2.5 billion, cash and investments of $674.1 million and $375.7 million of outstanding debt. As part of its capital and liquidity management, Janus reduced its outstanding shares by 2.3% during the second quarter by repurchasing 5.3 million shares of its common stock at an average price of $19.66 per share and a total cost of $104.9 million.

Second Quarter 2006 Earnings Call Information

Janus Capital Group will discuss its results during a conference call on Thursday, July 27 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/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 June 2006, Janus managed $153.4 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 (7/06).

(1) Based on Lipper relative performance on a 1- and 3-year

total-return basis as of 6/30/06.

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
                                        ------------------------------
                                         June 30,  March 31, June 30,
                                          2006       2006      2005
                                        ---------- --------- ---------
Investment Management Revenues:
 Investment management fees                $187.0    $185.6    $161.8
 Performance fees                             4.3       4.2       5.5
 Shareowner servicing fees and other         41.8      42.7      41.4
                                        ---------- --------- ---------
  Total                                     233.1     232.5     208.7
                                        ---------- --------- ---------

Investment Management Operating
 Expenses:
 Employee compensation and benefits          78.2      83.4      69.4
 Long-term incentive compensation            23.0      22.0      18.5
 Marketing and
  advertising                                 7.7       5.4       9.0
 Distribution                                27.2      26.8      25.9
 Depreciation and amortization                8.3       8.3       9.4
 General, administrative and occupancy       31.4      33.7      38.6
 Mutual fund investigation recoveries,
  net of charges                                -     (10.0)     (6.0)
                                        ---------- --------- ---------
  Total                                     175.8     169.6     164.8
                                        ---------- --------- ---------

Investment Management Operating Income       57.3      62.9      43.9

Printing and Fulfillment Segment:
 Revenue                                     21.5      23.6      20.6
 Operating expenses                          23.7      25.4      22.8
 Intangibles amortization                     1.9       1.9       1.9
                                        ---------- --------- ---------
Printing and Fulfillment Operating Loss      (4.1)     (3.7)     (4.1)

Interest expense                             (7.2)     (7.0)     (7.2)
Other income, net                             7.8       9.0      11.4
Income tax provision                        (19.5)    (22.2)    (15.7)
Equity in earnings of unconsolidated
 affiliate                                    2.0       1.7       1.7
Minority interest in consolidated
 earnings                                    (5.2)     (5.4)     (4.3)
                                        ---------- --------- ---------

Net Income                                  $31.1     $35.3     $25.7
                                        ========== ========= =========

Basic Earnings per Share
 Weighted average shares outstanding
  (in millions)                             205.3     210.1     221.0
 Basic earnings per share                   $0.15     $0.17     $0.12

Diluted Earnings per
 Share
 Weighted average shares outstanding
  (in millions)                             206.4     211.7     221.8
 Diluted earnings per
  share                                     $0.15     $0.17     $0.12

Average Assets Under Management
 (in billions)                             $154.0    $154.4    $129.3
                       JANUS CAPITAL GROUP INC.
           UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                        (dollars in millions)

                                              June 30,   December 31,
                                               2006          2005
                                             ----------  -------------
 Assets
  Cash and cash equivalents                     $337.9         $552.6
  Investments                                    336.2          334.1
  Other assets                                   263.2          285.5
  Property and equipment, net                     58.4           64.7
  Intangibles and goodwill,
   net                                         2,474.8        2,391.6
                                             ----------  -------------
   Total Assets                               $3,470.5       $3,628.5
                                             ==========  =============

 Liabilities and Stockholders'
  Equity
  Debt                                          $375.7         $376.3
  Other liabilities                              208.0          246.9
  Deferred income taxes                          424.2          424.1
  Stockholders'
   equity                                      2,462.6        2,581.2
                                             ----------  -------------
   Total Liabilities and
    Stockholders' Equity                      $3,470.5       $3,628.5
                                             ==========  =============


                   UNAUDITED CONDENSED CONSOLIDATED
                        CASH FLOW INFORMATION
                        (dollars in millions)

                                            Three Months Ended
                                     ---------------------------------
                                     June 30,   March 31,    June 30,
 Cash provided by (used in)              2006        2006        2005
                                     ---------  ----------  ----------
  Operating activities                 $114.6       $32.2      $100.1
  Investing
   activities                            10.4      (128.2)       83.4
  Financing
   activities                          (114.3)     (129.4)      (62.4)
                                     ---------  ----------  ----------
 Net change during period               $10.7     $(225.4)     $121.1
                                     =========  ==========  ==========
                       JANUS CAPITAL GROUP INC.
               ASSETS & FLOWS BY INVESTMENT DISCIPLINE
                        (dollars in billions)

                                             Three Months Ended
                                       -------------------------------
                                        June 30,  March 31,  June 30,
                                          2006       2006      2005
                                       ---------- ---------- ---------
Growth/Blend
  Beginning of period assets               $71.5      $68.5     $66.3
  Sales                                      3.0        3.5       1.6
  Redemptions                                4.4        3.6       5.2
                                       ---------- ---------- ---------
  Net Sales (redemptions)                   (1.5)      (0.1)     (3.7)
  Market appreciation                       (3.1)       3.1       2.0
                                       ---------- ---------- ---------
  End of period assets                     $66.9      $71.5     $64.7
                                       ========== ========== =========

Global/International
  Beginning of period assets               $13.3      $12.2     $13.4
  Sales                                      0.9        0.9       0.3
  Redemptions                                1.2        1.1       1.9
                                       ---------- ---------- ---------
  Net Sales (redemptions)                   (0.3)      (0.2)     (1.7)
  Market appreciation                       (0.4)       1.3      (0.2)
                                       ---------- ---------- ---------
  End of period assets                     $12.6      $13.3     $11.5
                                       ========== ========== =========

Mathematical/Quantitative
  Beginning of period assets               $50.6      $44.7     $27.6
  Sales                                      3.8        5.7       4.0
  Redemptions                                1.1        1.7       0.3
                                       ---------- ---------- ---------
  Net Sales (redemptions)                    2.6        4.0       3.8
  Market appreciation                       (1.7)       1.8       0.4
                                       ---------- ---------- ---------
  End of period assets                     $51.5      $50.6     $31.7
                                       ========== ========== =========

Fixed Income
  Beginning of period assets                $4.9       $5.2      $5.9
  Sales                                      0.2        0.2       0.3
  Redemptions                                0.4        0.4       0.4
                                       ---------- ---------- ---------
  Net Sales (redemptions)                   (0.2)      (0.3)     (0.2)
  Market appreciation                          -          -       0.1
                                       ---------- ---------- ---------
  End of period assets                      $4.7       $4.9      $5.7
                                       ========== ========== =========

Value
  Beginning of period assets               $11.1      $10.4     $10.2
  Disposition                                  -          -      (0.2)
  Sales                                      0.7        1.0       0.7
  Redemptions                                1.8        1.0       1.0
                                       ---------- ---------- ---------
  Net Sales (redemptions)                   (1.1)       0.1      (0.4)
  Market appreciation                       (0.3)       0.6       0.4
                                       ---------- ---------- ---------
  End of period assets                      $9.7      $11.1     $10.0
                                       ========== ========== =========

Money Market
  Beginning of period assets                $6.7       $7.5      $8.5
  Sales                                     12.4        9.5       9.2
  Redemptions                               11.3       10.4      11.0
                                       ---------- ---------- ---------
  Net Sales (redemptions)                    1.2       (0.8)     (1.8)
  Market appreciation                          -          -         -
                                       ---------- ---------- ---------
  End of period assets                      $7.9       $6.7      $6.7
                                       ========== ========== =========

Total
  Beginning of period assets              $158.1     $148.5    $131.8
  Disposition                                  -          -      (0.2)
  Sales                                     21.1       20.8      16.3
  Redemptions                               20.3       18.2      20.2
                                       ---------- ---------- ---------
  Net Sales (redemptions)                    0.8        2.6      (3.9)
  Market appreciation                       (5.5)       6.9       2.6
                                       ---------- ---------- ---------
  End of period assets                    $153.4     $158.1    $130.3
                                       ========== ========== =========

Total Excluding Money Markets
  Beginning of period assets              $151.4     $141.0    $123.3
  Disposition                                  -          -      (0.2)
  Sales                                      8.6       11.3       6.9
  Redemptions                                9.0        7.8       9.0
                                       ---------- ---------- ---------
  Net Sales (redemptions)                   (0.4)       3.5      (2.1)
  Market appreciation                       (5.5)       6.9       2.6
                                       ---------- ---------- ---------
  End of period assets                    $145.5     $151.4    $123.6
                                       ========== ========== =========

Total Excluding Mathematical/Quantitative
 & Money Markets
  Beginning of period assets              $100.8      $96.2     $95.7
  Disposition                                  -          -      (0.2)
  Sales                                      4.9        5.6       2.8
  Redemptions                                7.9        6.2       8.7
                                       ---------- ---------- ---------
  Net Sales (redemptions)                   (3.0)      (0.5)     (5.9)
  Market appreciation                       (3.8)       5.1       2.2
                                       ---------- ---------- ---------
  End of period assets                     $94.0     $100.8     $91.9
                                       ========== ========== =========

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
 Funds ("JIF")                          Lipper Rankings Based
                                    on Total Returns as of 6/30/06
                                --------------------------------------
                                      1-Year             3-Year
                                --------------------------------------
                                Percentile Rank /  Percentile   Rank /
              PM      Lipper      Rank (%) Total     Rank (%) Total
            Inception  Category             Funds              Funds
           ---------- --------- ----------------- --------------------
Growth
 Funds
----------------------------------------------------------------------
Janus Fund            Large-Cap
                      Growth
             Jan-06    Funds       28      195/705    34      202/594
Janus                 Large-Cap
Twenty                Growth
 Fund(1)     Aug-97    Funds        4       22/705     1        2/594
Janus                 Large-Cap
Mercury               Growth
 Fund        Jan-06    Funds       23      161/705    17      100/594
Janus                 Multi-Cap
Olympus               Growth
 Fund(1)     Aug-97    Funds       45      183/414    47      164/355
Janus                 Mid-Cap
Enterprise            Growth
 Fund        Jan-02    Funds       39      219/572    23      105/473
Janus                 Small-Cap
 Venture              Growth
 Fund(1)     Jan-01    Funds       61      323/533    21       92/454
Janus                 Multi-Cap
 Orion                Growth
 Fund        Jun-00    Funds        1        1/414     1        3/355
Janus                 Small-Cap
 Triton               Growth
 Fund        Jan-06    Funds       10       52/533     -            -
Janus                 Multi-Cap
 Research             Growth
 Fund        Feb-05    Funds        6       22/414     -            -
----------------------------------------------------------------------
Core Funds
----------------------------------------------------------------------
Janus
Growth
and                   Large-Cap
Income                Core
 Fund        Dec-03    Funds        9       73/848     8       54/725
Janus                 Mixed-
 Balanced              Asset
 Fund                 Target
                      Alloc.
             Apr-05   Mod. Funds   19       73/392    39      105/271
Janus                 Multi-Cap
Contrarian            Core
 Fund        Feb-00    Funds        1        7/819     1        2/585
Janus
Funda-
mental                Large-Cap
Equity                Core
 Fund        Apr-05    Funds        1        6/848     2        8/725
INTECH
Risk-
Managed               Multi-Cap
 Stock                Core
 Fund        Feb-03    Funds       50      403/819    13       73/585
----------------------------------------------------------------------
International/Global
 Funds
----------------------------------------------------------------------
Janus
 Worldwide            Global
 Fund        Jun-04    Funds       95      352/371    99      286/290
Janus                 Interna-
 Overseas             tional
 Fund        Jun-03    Funds        1        1/908     1        2/769
Janus
Global                Health/
Life                  Biotech-
Sciences              nology
 Fund        Dec-98    Funds       36       63/174    13       20/159
Janus
Global                Science &
Technology            Technology
 Fund        Jan-06    Funds       21       59/287    37       94/257
Janus
Global
Oppor-
tunities              Global
 Fund        Jun-01    Funds       99      366/371    60      172/290
----------------------------------------------------------------------
Value
 Funds
----------------------------------------------------------------------
Janus Mid
Cap Value             Mid-Cap
Fund -                Value
 Inv(2)      Aug-98    Funds       46      121/264    43       91/215
Janus
Small
Cap
Value
Fund -                Small-Cap
 Inv.(1,2)   Feb-97   Core Funds   91      578/640    84      426/508
----------------------------------------------------------------------
Income
 Funds
----------------------------------------------------------------------
Janus                 Inter-
Flexible              mediate
Bond                  Inv Grade
 Fund                 Debt
             Dec-91    Funds       43      205/477    49      198/411
Janus                 High
High-                 Current
Yield                 Yield
 Fund        Dec-03    Funds       46      203/444    63      248/395
Janus                 Short
 Short-               Investment
 Term Bond            Grade Debt
 Fund        Jun-03    Funds       26       57/226    21       38/182
Janus
Federal
Tax-                  General
Exempt                Muni Debt
 Fund        Feb-05    Funds       45      117/259    88      219/248
----------------------------------------------------------------------


Janus Investment
 Funds ("JIF")                          Lipper Rankings Based
                                    on Total Returns as of 6/30/06
                                --------------------------------------
                                      5-Year             10-Year
                                --------------------------------------
                                Percentile Rank /  Percentile Rank /
              PM      Lipper      Rank (%) Total     Rank (%) Total
            Inception  Category             Funds              Funds
           ---------- --------- ------------------ -------------------
Growth
 Funds
----------------------------------------------------------------------
Janus Fund            Large-Cap
                      Growth
             Jan-06    Funds       73      350/482    42       70/167
Janus                 Large-Cap
Twenty                Growth
 Fund(1)     Aug-97    Funds        8       38/482     1        1/167
Janus                 Large-Cap
Mercury               Growth
 Fund        Jan-06    Funds       54      260/482     9       14/167
Janus                 Multi-Cap
Olympus               Growth
 Fund(1)     Aug-97    Funds       53      151/284    25        24/97
Janus                 Mid-Cap
Enterprise            Growth
 Fund        Jan-02    Funds       62      223/360    70       94/134
Janus                 Small-Cap
 Venture              Growth
 Fund(1)     Jan-01    Funds       28      100/360    37       44/118
Janus                 Multi-Cap
 Orion                Growth
 Fund        Jun-00    Funds        3        8/284     -            -
Janus                 Small-Cap
 Triton               Growth
 Fund        Jan-06    Funds        -            -     -            -
Janus                 Multi-Cap
 Research             Growth
 Fund        Feb-05    Funds        -            -     -            -
----------------------------------------------------------------------
Core Funds
----------------------------------------------------------------------
Janus
Growth
and                   Large-Cap
Income                Core
 Fund        Dec-03    Funds       20      121/609     3        7/241
Janus                 Mixed-
 Balanced              Asset
 Fund                 Target
                      Alloc.
             Apr-05   Mod. Funds   36       74/209     3         2/85
Janus                 Multi-Cap
Contrarian            Core
 Fund        Feb-00    Funds        3       11/430     -            -
Janus
Funda-
mental                Large-Cap
Equity                Core
 Fund        Apr-05    Funds        4       21/609     2        3/241
INTECH
Risk-
Managed               Multi-Cap
 Stock                Core
 Fund        Feb-03    Funds        -            -     -            -
----------------------------------------------------------------------
International/Global
 Funds
----------------------------------------------------------------------
Janus
 Worldwide            Global
 Fund        Jun-04    Funds       99      224/227    69        59/85
Janus                 Interna-
 Overseas             tional
 Fund        Jun-03    Funds       17      101/611     5       11/231
Janus
Global                Health/
Life                  Biotech-
Sciences              nology
 Fund        Dec-98    Funds       47       61/130     -            -
Janus
Global                Science &
Technology            Technology
 Fund        Jan-06    Funds       43       95/222     -            -
Janus
Global
Oppor-
tunities              Global
 Fund        Jun-01    Funds       22       49/227     -            -
----------------------------------------------------------------------
Value
 Funds
----------------------------------------------------------------------
Janus Mid
Cap Value             Mid-Cap
Fund -                Value
 Inv(2)      Aug-98    Funds       33       47/142     -            -
Janus
Small
Cap
Value
Fund -                Small-Cap
 Inv.(1,2)   Feb-97   Core Funds   66      258/391     -            -
----------------------------------------------------------------------
Income
 Funds
----------------------------------------------------------------------
Janus                 Inter-
Flexible              mediate
Bond                  Inv Grade
 Fund                 Debt
             Dec-91    Funds       20       63/323    26       37/146
Janus                 High
High-                 Current
Yield                 Yield
 Fund        Dec-03    Funds       51      160/313    13       14/114
Janus                 Short
 Short-               Investment
 Term Bond            Grade Debt
 Fund        Jun-03    Funds       48       64/135    20        14/70
Janus
Federal
Tax-                  General
Exempt                Muni Debt
 Fund        Feb-05    Funds       68      152/224    83      119/143
----------------------------------------------------------------------


Janus Investment
 Funds ("JIF")                      Lipper Rankings Based
                                on Total Returns as of 6/30/06
                                ------------------------------
                                      Since PM Inception
                                ------------------------------
                                   Percentile       Rank /
              PM      Lipper        Rank (%)     Total Funds
            Inception  Category
           ---------- ---------   ----------------------------
Growth
 Funds
--------------------------------------------------------------
Janus Fund            Large-Cap
                      Growth
             Jan-06    Funds          ++
Janus                 Large-Cap
Twenty                Growth
 Fund(1)     Aug-97    Funds           4                7/230
Janus                 Large-Cap
Mercury               Growth
 Fund        Jan-06    Funds          ++
Janus                 Multi-Cap
Olympus               Growth
 Fund(1)     Aug-97    Funds          18               23/134
Janus                 Mid-Cap
Enterprise            Growth
 Fund        Jan-02    Funds          20               78/396
Janus                 Small-Cap
 Venture              Growth
 Fund(1)     Jan-01    Funds          30              100/343
Janus                 Multi-Cap
 Orion                Growth
 Fund        Jun-00    Funds          29               64/226
Janus                 Small-Cap
 Triton               Growth
 Fund        Jan-06    Funds          ++
Janus                 Multi-Cap
 Research             Growth
 Fund        Feb-05    Funds           5               19/401
--------------------------------------------------------------
Core Funds
--------------------------------------------------------------
Janus
Growth
and                   Large-Cap
Income                Core
 Fund        Dec-03    Funds           5               36/755
Janus                 Mixed-
 Balanced              Asset
 Fund                 Target
                      Alloc.
             Apr-05   Mod. Funds      11               41/390
Janus                 Multi-Cap
Contrarian            Core
 Fund        Feb-00    Funds          11               36/334
Janus
Funda-
mental                Large-Cap
Equity                Core
 Fund        Apr-05    Funds           1                6/838
INTECH
Risk-
Managed               Multi-Cap
 Stock                Core
 Fund        Feb-03    Funds          24              135/574
--------------------------------------------------------------
International/Global
 Funds
--------------------------------------------------------------
Janus
 Worldwide            Global
 Fund        Jun-04    Funds          92              293/319
Janus                 Interna-
 Overseas             tional
 Fund        Jun-03    Funds           1                2/769
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
Oppor-
tunities              Global
 Fund        Jun-01    Funds          22               49/227
--------------------------------------------------------------
Value
 Funds
--------------------------------------------------------------
Janus Mid
Cap Value             Mid-Cap
Fund -                Value
 Inv(2)      Aug-98    Funds           4                 3/77
Janus
Small
Cap
Value
Fund -                Small-Cap
 Inv.(1,2)   Feb-97   Core Funds      21               29/140
--------------------------------------------------------------
Income
 Funds
--------------------------------------------------------------
Janus                 Inter-
Flexible              mediate
Bond                  Inv Grade
 Fund                 Debt
             Dec-91    Funds           4                 2/56
Janus                 High
High-                 Current
Yield                 Yield
 Fund        Dec-03    Funds          43              173/407
Janus                 Short
 Short-               Investment
 Term Bond            Grade Debt
 Fund        Jun-03    Funds          21               38/182
Janus
Federal
Tax-                  General
Exempt                Muni Debt
 Fund        Feb-05    Funds          42              107/255
--------------------------------------------------------------

                       Percent of JIF Funds per Lipper Quartile based
                                      on Total Returns
                       -----------------------------------------------
                                                            Since PM
                        1-Year   3-Year   5-Year  10-Year   Inception
----------------------------------------------------------------------
1st Quartile              44.0%    52.2%    36.4%    60.0%       71.4%
2nd Quartile              40.0%    26.1%    27.3%    20.0%       23.8%
3rd Quartile               4.0%     8.7%    31.8%    13.3%        0.0%
4th Quartile              12.0%    13.0%     4.5%     6.7%        4.8%
----------------------------------------------------------------------

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 6/30/06(1)
                                   -----------------------------------
                                                                Life
                         Inception                                of
                             Date  1 Year 3 Year 5 Year 10 Year  Fund
                            ------ ------ ------ ------ ------- ------
Growth Funds
----------------------------------------------------------------------
Janus Fund                   2/70   7.07   8.80  (2.52)   5.97  13.64
Janus Twenty Fund(3)         4/85  11.73  15.13   2.74    9.98  13.18
Janus Mercury Fund           5/93   7.62  10.27  (1.60)   8.17  12.03
Janus Olympus Fund(3,5)     12/95  10.54  12.06   0.39    8.93  10.86
Janus Enterprise Fund        9/92  13.77  17.00   1.97    5.86  11.07
Janus Venture Fund(3,6)      4/85  10.65  17.92   5.58    8.43  13.29
Janus Orion Fund(6,7,8,23)   6/00  24.65  21.57   9.58      --  (1.62)
Janus Triton Fund(4,6)       2/05  20.53     --     --      --  16.20
Janus Research Fund(7)       2/05  21.64     --     --      --  18.11
----------------------------------------------------------------------
Core Funds
----------------------------------------------------------------------
Janus Growth and Income Fund 5/91  12.36  13.34   2.86   11.15  13.23
Janus Balanced Fund          9/92   8.20   8.47   4.54    9.72  11.01
Janus Contrarian
 Fund(7,10,13)               2/00  22.05  23.56   9.73      --   8.39
Janus Fundamental Equity
 Fund(2,10)                  6/96  17.76  15.92   5.32   12.71  12.70
INTECH Risk-Managed Stock
 Fund(10,11,12)              2/03   9.77  15.70     --      --  18.31
----------------------------------------------------------------------
International/Global Funds
----------------------------------------------------------------------
Janus Worldwide Fund(11)     5/91  10.45   9.60  (1.47)   5.78  10.61
Janus Overseas
 Fund(7,9,10,11,15)          5/94  52.33  33.29  11.83   12.73  13.85
Janus Global Life Sciences
 Fund(10,11)                12/98   6.63  12.77   2.08      --   9.55
Janus Global Technology
 Fund(7,10,11,14)           12/98  13.92  11.24  (4.30)     --   2.40
Janus Global Opportunities
 Fund(11)                    6/01   8.39  15.73   8.49      --   8.48
----------------------------------------------------------------------
Value Funds
----------------------------------------------------------------------
Janus Small Cap Value Fund -
 Inv.(3,8,16)               10/87   7.48  15.53   8.50   15.40  14.24
Janus Mid Cap Value Fund  -
 Inv.(8,10,17)               8/98  11.58  18.54  11.19      --  17.28
----------------------------------------------------------------------
Income Funds
----------------------------------------------------------------------
Janus Flexible Bond
 Fund(10,18,19,20)           7/87  (0.87)  1.77   5.05    6.00   7.41
Janus High-Yield
 Fund(8,10,11,18,19,20,24)  12/95   4.77   7.22   7.23    7.05   8.04
Janus Short-Term Bond
 Fund(10,18,19,21)           9/92   2.27   2.02   3.01    4.83   4.63
Janus Federal Tax-Exempt
 Fund(10,18,19,21,22)        5/93   0.63   1.60   3.92    4.32   4.47
----------------------------------------------------------------------

Notes:

(1) All figures unaudited.

(2) Effective 06/30/06, Janus Core Equity Fund has been renamed Janus
    Fundamental Equity Fund.

(3) Closed to new investors.

(4) Effective at the close of the New York Stock Exchange on 6/30/06,
    Blaine Rollins is no longer the portfolio manager of Janus Triton
    Fund, and Brian Schaub and Chad Meade are now the Fund managers.

(5) Effective at the close of the New York Stock Exchange on 6/30/06,
    Claire Young is no longer the portfolio manager of Olympus Fund,
    and Ron Sachs is now the Fund manager.

(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 market volatility
    in the financials sector.

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

(11) 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.

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

(13) The Fund held approximately 17.6% of its assets in Indian
    securities as of March 31, 2006 and the Fund has experienced
    significant gains due, in part, to its investments in India. While
    holdings are subject to change without notice, the Fund's returns
    and NAV may be affected to a large degree by fluctuations in
    currency exchange rates or political or economic conditions in
    India.

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

(15) The Fund held approximately 15.9% and 13.2% of its assets in
    India and Brazil securities, respectively, as of March 31, 2006,
    and the Fund has experienced significant gains due, in part, to
    its investments in India and Brazil. While holdings are subject to
    change without notice, the Fund's 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.

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

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

(18) 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.

(19) As of June 30, 2006, the 30-day SEC Yield was 4.06% on Janus
    Federal Tax-Exempt Fund, 4.74% on Janus Flexible Bond Fund, 7.45%
    on Janus High-Yield Fund and 4.89% on Janus Short-Term Bond Fund.

(20) 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.

(21) 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 June 30, 2006
    would have been 4.42% and 3.57%, respectively and total returns
    would have been lower.

(22) 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.

(23) The Fund held approximately 10.6% of its assets in Brazilian
    securities as of March 31, 2006 and the Fund has experienced
    significant gains due, in part, to its investments in Brazil.
    While holdings are subject to change without notice, the Fund's
    returns and NAV may be affected to a large degree by fluctuations
    in currency exchange rates or political or economic conditions in
    Brazil.

(24) Due to additional expense accruals deducted from the fund, the
    yield experienced a negative fluctuation. There is no guarantee of
    any future expense accruals from the fund.

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
and emerging markets, non-investment grade debt securities,
undervalued or overlooked companies, companies with relatively small
market capitalizations and investments in specific industries or
countries. Please see a Janus prospectus or janus.com for more
information about fund holdings and details.
Janus Investment   The Overall Morningstar Rating(TM) is derived from
 Fund ("JIF")      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
                       ----------- ----------- ----------- -----------
                              #           #           #           #
                             of          of          of          of
   Fund      Category  Stars Funds Stars Funds Stars Funds Stars Funds
  ------     --------  ----------- ----------- ----------- -----------

----------------------------------------------------------------------
Janus Fund  Large
             Growth
             Funds      3    1361   3    1361   2    1081   3     402
Janus       Mid-Cap
Enterprise  Growth
 Fund       Funds       3     823   4     823   3     642   2     231
Janus
Growth and  Large
Income      Growth
 Fund        Funds      5    1361   5    1361   4    1081   5     402
Janus       Large
Mercury     Growth
 Fund        Funds      3    1361   4    1361   3    1081   3     402
Janus       Large
Olympus     Growth
 Fund (1)    Funds      3    1361   4    1361   3    1081   3     402
Janus       Mid-Cap
Orion        Growth
 Fund        Funds      5     823   5     823   5     642         N/A
Janus       Large
Twenty       Growth
 Fund(1)     Funds      4    1361   5    1361   4    1081   4     402
Janus       Small
Venture     Growth
 Fund(1)     Funds      3     646   4     646   3     509   2     182
Janus       Small
Triton       Growth
 Fund        Funds            N/A         N/A         N/A         N/A
Janus       Large
Research    Growth
 Fund        Funds            N/A         N/A         N/A         N/A
Janus
Global Life Specialty-
Sciences     Health
 Fund        Funds      3     191   4     191   3     156         N/A
Janus
Global      Specialty-
Technology   Technology
 Fund        Funds      4     282   4     282   4     243         N/A
Janus       Foreign
 Overseas    Large
 Fund        Growth
             Funds      4     195   5     195   4     153   4      66
Janus
 Worldwide  World Stock
 Fund        Funds      2     403   1     403   1     314   2     136
Janus
Global
Oppor-
tunities    World Stock
 Fund        Funds      4     403   3     403   4     314         N/A
Janus       Moderate
Balanced     Allocation
 Fund        Funds      4     794   3     794   4     619   4     301
INTECH
Risk-
Managed
Stock       Large Blend
 Fund        Funds      5    1476   5    1476         N/A         N/A
Janus
Funda-
mental
Equity      Large Blend
 Fund        Funds      5    1476   5    1476   4    1175   5     443
Janus
Contrarian  Large Blend
 Fund        Funds      5    1476   5    1476   5    1175         N/A
Janus Mid
 Cap Value
 Fund -
 Investor   Mid-Cap
 Shares(2)  Value Funds 4     266   3     266   4     167         N/A
Janus Small
Cap Value
Fund -
Investor
Shares      Small Value
 (1)(2)      Funds      1     291   2     291   1     205   4      64
Janus
 Federal    Muni
 Tax-Exempt National
 Fund       Long Funds  2     292   2     292   2     275   2     198
Janus       Inter-
 Flexible   mediate-
 Bond Fund  Term Bond
             Funds      4     905   3     905   4     702   4     354
Janus High- High Yield
 Yield Fund  Bond Funds 4     476   3     476   3     382   4     145
Janus
Short-Term  Short-Term
 Bond Fund   Bond Funds 3     335   4     335   3     239   3     141
----------------------------------------------------------------------
Percent of funds
 rated 4 / 5 Stars           56.5%       60.9%       50.0%       50.0%


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.

Source: Janus Capital Group Inc.