Janus Announces Third Quarter 2006 Results

Third quarter earnings of $0.15 per diluted share ------------------------------------------------------ Long-term net outflows of $0.1 billion for the quarter ------------------------------------------------- More than 75% of retail funds outperformed Lipper peers for 3 and 5 years ------------------------------------------------- $138 million of stock buybacks during the third quarter -------------------------------------------------

Company Release - 10/26/2006 8:00 AM ET

DENVER--(BUSINESS WIRE)--

Janus Capital Group Inc. (NYSE: JNS) today reported third quarter net income of $29.5 million, or $0.15 per diluted share, compared with net income of $31.1 million, or $0.15 per diluted share, in the second quarter 2006, and $31.7 million, or $0.15 per diluted share, in the third quarter 2005. The company's investment management operating margins for the third quarter 2006 were 24.9% compared with 24.6% in the second quarter 2006 and 22.7% in the third quarter 2005.

Third quarter 2006 results include a net expense of $9.5 million, which primarily stemmed from impairment charges associated with the loss of two subadvised accounts and certain litigation fees, partially offset by lower long-term compensation expense.

Flows and Assets Under Management

Average assets under management during the third quarter declined to $153.2 billion compared with $154.0 billion during the second quarter 2006. At September 30, 2006, the company's total assets under management were $158.3 billion compared with $153.4 billion at June 30, 2006. The increase in assets at the end of the third quarter reflect $4.7 billion in market appreciation and fund performance, money market net inflows of $0.3 billion and long-term net outflows of $0.1 billion. Redemptions related to the third quarter impairment charges are expected to occur in the fourth quarter 2006 ($2.3 billion, previously disclosed) and the first quarter 2007 ($0.9 billion).

Janus' INTECH subsidiary had net inflows of $1.7 billion in the third quarter compared with net inflows of $2.6 billion in the second quarter 2006. Excluding INTECH, Janus' long-term net outflows totaled $1.8 billion in the third quarter 2006 versus long-term net outflows of $3.0 billion in the second quarter 2006.

"Although net flows were fairly flat this quarter, we're optimistic that we'll turn the tide," said Janus Capital Group CEO Gary Black. "The keys will be continuing to deliver strong investment performance, capitalizing on our expanded intermediary distribution and investing in the Janus brand."

Investment Management

Janus' investment management performance remained strong during the third quarter, driving continued improvement in the company's five-year results. As of September 30, 2006, approximately 64%, 78% and 77% 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 - 11.)

"Delivering consistently strong returns is our top priority, so we're proud that more than three-fourths of our funds beat their peers during the last three- and five-year periods," Black said. "We're also encouraged that since changing the portfolio manager in February, the performance of our flagship Janus Fund has improved markedly. In fact, at the end of the third quarter, Janus Fund was ranked in the top 35th percentile or better in Lipper's large-cap growth category on a one-, three- and five-year, total-return basis."

Financial Discussion

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


                                          Three Months Ended
                                --------------------------------------
                                September 30,  June 30,  September 30,
                                    2006        2006         2005
                                -------------  --------  -------------

Investment Management Segment
-------------------------------
Average Assets (in billions)          $153.2    $154.0         $135.0
Ending AUM (in billions)              $158.3    $153.4         $139.4
Revenues                              $229.0    $233.1         $218.4
Operating Expenses                    $172.0    $175.8         $168.9
Operating Income                       $57.0     $57.3          $49.5
Operating Margin                        24.9%     24.6%          22.7%

Printing and Fulfillment
 Operating Loss                        $(5.7)    $(4.1)         $(4.7)

Consolidated Net Income                $29.5     $31.1          $31.7
Diluted Earnings per Share             $0.15     $0.15          $0.15
Shares Repurchased (in
 millions)                               7.7       5.3            7.1
Cost of Shares Repurchased            $138.1    $104.9         $101.9

Investment Management Segment - Third Quarter 2006 versus Second Quarter 2006

Third quarter revenues of $229.0 million were down slightly from the $233.1 million in the previous quarter, consistent with the decline in average assets under management and $1.6 million decrease associated with the waiver on the Janus Worldwide Fund. Third quarter 2006 operating expenses totaled $172.0 million, a decrease of $3.8 million from the second quarter. The decrease was driven by a $7.5 million decline in employee compensation and benefits and lower general and administrative expenses, partially offset by the $9.5 million net impact of the charges discussed on page 1.

Printing and Fulfillment Segment

Janus' printing business, Rapid Solutions Group (RSG), had an operating loss of $5.7 million in the third quarter of 2006 compared with a $4.1 million loss in the previous quarter, reflecting higher outsourced production costs.

Capital and Liquidity

At September 30, 2006, Janus had stockholders' equity of $2.4 billion, cash and investments of $741.2 million - excluding $113.1 million of cash escrowed for the repayment of debt during the fourth quarter 2006 - and $650.4 million of outstanding debt. On September 18, 2006, Janus issued $275.0 million of five-year, 5.875% senior notes. Net proceeds from the debt offering will be used to repay $113.1 million of debt maturing in November 2006. In addition, Janus may use remaining proceeds to repurchase a portion of existing debt - due in 2032 and callable in 2007 - or for general corporate purposes.

As part of its capital and liquidity management, Janus reduced its outstanding shares by 3.6% during the third quarter by repurchasing 7.7 million shares of its common stock at an average price of $17.97 per share and a total cost of $138.1 million. Year-to-date, Janus has repurchased 18.7 million shares of its common stock at an average price of $19.64 per share and a total cost of $368.0 million, reducing shares outstanding by 7.8%.

Third Quarter 2006 Earnings Call Information

Janus Capital Group will discuss its results during a conference call on Thursday, October 26 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 September 2006, Janus managed $158.3 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 (10/06).

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
                                 -------------------------------------
                                 September 30, June 30,  September 30,
                                     2006        2006        2005
                                 ------------- --------- -------------
Investment Management Revenues:
 Investment management fees            $183.5    $187.0        $169.5
 Performance fees                         4.0       4.3           6.7
 Shareowner servicing fees and
  other                                  41.5      41.8          42.2
                                 ------------- --------- -------------
  Total                                 229.0     233.1         218.4
                                 ------------- --------- -------------

Investment Management Operating
 Expenses:
 Employee compensation and
  benefits                               70.7      78.2          80.1
 Long-term incentive
  compensation                           17.0      23.0          18.1
 Marketing and advertising                6.6       7.7           5.4
 Distribution                            26.1      27.2          25.5
 Depreciation and amortization            7.6       8.3           8.4
 General, administrative and
  occupancy                              33.5      31.4          31.4
 Restructuring and impairments           10.5         -             -
                                 ------------- --------- -------------
  Total                                 172.0     175.8         168.9
                                 ------------- --------- -------------

Investment Management Operating
 Income                                  57.0      57.3          49.5

Printing and Fulfillment
 Segment:
 Revenue                                 21.1      21.5          19.1
 Operating expenses                      24.8      23.7          21.8
 Depreciation and amortization            2.0       1.9           2.0
                                 ------------- --------- -------------
Printing and Fulfillment
 Operating Loss                          (5.7)     (4.1)         (4.7)

Interest expense                         (8.1)     (7.2)         (7.2)
Other income, net                         8.6       7.8           7.9
Income tax provision                    (18.4)    (19.5)        (10.5)
Equity in earnings of
 unconsolidated affiliate                 1.7       2.0           1.9
Minority interest in
 consolidated earnings                   (5.6)     (5.2)         (5.2)
                                 ------------- --------- -------------

Net Income                              $29.5     $31.1         $31.7
                                 ============= ========= =============

Basic Earnings per Share
 Weighted average shares
  outstanding (in millions)             201.0     205.3         216.2
 Basic earnings per share               $0.15     $0.15         $0.15

Diluted Earnings per Share
 Weighted average shares
  outstanding (in millions)             202.2     206.4         217.2
 Diluted earnings per share             $0.15     $0.15         $0.15

Average Assets Under Management
 (in billions)                         $153.2    $154.0        $135.0
                       JANUS CAPITAL GROUP INC.
           UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                        (dollars in millions)

                                         September 30,   December 31,
                                             2006            2005
                                         --------------  -------------
Assets
  Cash and cash equivalents                     $459.9         $552.6
  Investments                                    281.3          334.1
  Other assets                                   402.9          285.5
  Property and equipment, net                     55.5           64.7
  Intangibles and goodwill, net                2,460.1        2,391.6
                                         --------------  -------------
   Total Assets                               $3,659.7       $3,628.5
                                         ==============  =============

Liabilities and Stockholders' Equity
  Debt                                          $650.4         $376.3
  Other liabilities                              223.2          246.9
  Deferred income taxes                          415.0          424.1
  Stockholders' equity                         2,371.1        2,581.2
                                         --------------  -------------
   Total Liabilities and Stockholders'
    Equity                                    $3,659.7       $3,628.5
                                         ==============  =============
                   UNAUDITED CONDENSED CONSOLIDATED
                        CASH FLOW INFORMATION
                        (dollars in millions)

                                          Three Months Ended
                                --------------------------------------
                                September 30,  June 30,  September 30,
Cash provided by (used in)          2006        2006         2005
                                ------------- ---------- -------------
 Operating activities                  $50.7     $114.6         $58.5
 Investing activities                  (65.9)      10.4           2.8
 Financing activities                  137.2     (114.3)       (111.2)
                                ------------- ---------- -------------
Net change during period              $122.0      $10.7        $(49.9)
                                ============= ========== =============
                       JANUS CAPITAL GROUP INC.
               ASSETS & FLOWS BY INVESTMENT DISCIPLINE
                        (dollars in billions)

                                          Three Months Ended
                                 -------------------------------------
                                 September 30, June 30,  September 30,
                                      2006        2006        2005
                                 ------------- --------- -------------
Growth/Blend
  Beginning of period assets            $66.9     $71.5         $64.7
  Sales                                   1.9       3.0           1.9
  Redemptions                             3.5       4.4           4.1
                                 ------------- --------- -------------
  Net Sales (redemptions)                (1.6)     (1.5)         (2.2)
  Market appreciation                     1.6      (3.1)          4.2
                                 ------------- --------- -------------
  End of period assets                  $67.0     $66.9         $66.7
                                 ============= ========= =============

Global/International
  Beginning of period assets            $12.6     $13.3         $11.5
  Sales                                   0.7       0.9           0.3
  Redemptions                             0.7       1.2           1.1
                                 ------------- --------- -------------
  Net Sales (redemptions)                   -      (0.3)         (0.8)
  Market appreciation                     0.7      (0.4)          1.1
                                 ------------- --------- -------------
  End of period assets                  $13.3     $12.6         $11.7
                                 ============= ========= =============

Mathematical/Quantitative
  Beginning of period assets            $51.5     $50.6         $31.7
  Sales                                   3.2       3.8           5.5
  Redemptions                             1.4       1.1           0.4
                                 ------------- --------- -------------
  Net Sales (redemptions)                 1.7       2.6           5.1
  Market appreciation                     2.3      (1.7)          1.4
                                 ------------- --------- -------------
  End of period assets                  $55.6     $51.5         $38.2
                                 ============= ========= =============

Fixed Income
  Beginning of period assets             $4.7      $4.9          $5.7
  Sales                                   0.2       0.2           0.2
  Redemptions                             0.4       0.4           0.5
                                 ------------- --------- -------------
  Net Sales (redemptions)                (0.2)     (0.2)         (0.2)
  Market appreciation                     0.1         -          (0.1)
                                 ------------- --------- -------------
  End of period assets                   $4.7      $4.7          $5.4
                                 ============= ========= =============

Value
  Beginning of period assets             $9.7     $11.1         $10.0
  Sales                                   0.6       0.7           0.7
  Redemptions                             0.7       1.8           0.8
                                 ------------- --------- -------------
  Net Sales (redemptions)                (0.1)     (1.1)         (0.1)
  Market appreciation                     0.1      (0.3)          0.5
                                 ------------- --------- -------------
  End of period assets                   $9.7      $9.7         $10.4
                                 ============= ========= =============

Money Market
  Beginning of period assets             $7.9      $6.7          $6.7
  Sales                                  11.7      12.4           8.1
  Redemptions                            11.4      11.3           7.7
                                 ------------- --------- -------------
  Net Sales (redemptions)                 0.3       1.2           0.4
  Market appreciation                       -         -             -
                                 ------------- --------- -------------
  End of period assets                   $8.0      $7.9          $7.0
                                 ============= ========= =============

Total
  Beginning of period assets           $153.4    $158.1        $130.3
  Sales                                  18.2      21.1          16.6
  Redemptions                            18.0      20.3          14.5
                                 ------------- --------- -------------
  Net Sales (redemptions)                 0.2       0.8           2.1
  Market appreciation                     4.7      (5.5)          7.0
                                 ------------- --------- -------------
  End of period assets                 $158.3    $153.4        $139.4
                                 ============= ========= =============

Total Excluding Money Markets
  Beginning of period assets           $145.5    $151.4        $123.6
  Sales                                   6.5       8.6           8.5
  Redemptions                             6.6       9.0           6.8
                                 ------------- --------- -------------
  Net Sales (redemptions)                (0.1)     (0.4)          1.7
  Market appreciation                     4.7      (5.5)          7.0
                                 ------------- --------- -------------
  End of period assets                 $150.3    $145.5        $132.4
                                 ============= ========= =============

Total Excluding
 Mathematical/Quantitative &
 Money Markets
  Beginning of period assets            $94.0    $100.8         $91.9
  Sales                                   3.4       4.9           3.1
  Redemptions                             5.2       7.9           6.4
                                 ------------- --------- -------------
  Net Sales (redemptions)                (1.8)     (3.0)         (3.4)
  Market appreciation                     2.4      (3.8)          5.7
                                 ------------- --------- -------------
  End of period assets                  $94.7     $94.0         $94.2
                                 ============= ========= =============

Each line has been rounded on the schedule individually to
increase the accuracy of the amounts presented. Therefore
totals and subtotals may not foot.
Janus Investment Funds ("JIF")            Lipper Rankings Based
                                     on Total Returns as of 9/30/06
                                   -----------------------------------
                                        1-Year            3-Year
                                   ----------------- ----------------

                                   Percen-           Percen-
                                     tile    Rank/    tile    Rank/
              PM      Lipper         Rank    Total    Rank    Total
            Inception  Category      (%)      Funds    (%)     Funds
           ---------- ------------ -----------------------------------
Growth
 Funds
----------------------------------------------------------------------
                      Large-Cap
                       Growth
Janus Fund   Jan-06    Funds            13   90/717      30  183/612
Janus                 Large-Cap
 Twenty                Growth
 Fund(1)     Aug-97    Funds            49  346/717       1    2/612
Janus                 Large-Cap
 Mercury               Growth
 Fund        Jan-06    Funds            21  147/717       6   33/612
Janus                 Multi-Cap
 Olympus               Growth
 Fund(1)     Jun-06    Funds            55  232/427      42  151/366
Janus                 Mid-Cap
 Enterprise            Growth
 Fund        Jan-02    Funds            15   87/605       9   40/479
Janus                 Small-Cap
 Venture               Growth
 Fund(1)     Jan-01    Funds            19  101/558      18   79/463
                      Multi-Cap
Janus Orion            Growth
 Fund        Jun-00    Funds             9   35/427       1    1/366
Janus                 Small-Cap
 Triton                Growth
 Fund        Jun-06    Funds            10   55/558       -        -
Janus                 Multi-Cap
 Research              Growth
 Fund        Feb-05    Funds             2    7/427       -        -
----------------------------------------------------------------------
Core Funds
----------------------------------------------------------------------
Janus
 Growth and
 Income               Large-Cap
 Fund        Dec-03    Core Funds       91  764/841      12   84/708
                      Mixed-Asset
Janus                  Target
 Balanced              Alloc. Mod.
 Fund        Apr-05    Funds            12   47/400      28   76/279
Janus
 Contrarian           Multi-Cap
 Fund        Feb-00    Core Funds        4   27/845       1    1/595
Janus
Funda-
mental
Equity                Large-Cap
 Fund        Apr-05    Core Funds       54  449/841       2    9/708
INTECH
 Risk-
 Managed              Multi-Cap
 Stock Fund  Feb-03    Core Funds       56  467/845       7   41/595
----------------------------------------------------------------------
International/
 Global Funds
----------------------------------------------------------------------
Janus
 Worldwide
 Fund        Jun-04   Global Funds      83  312/375      99  297/302
Janus                 Inter-
 Overseas             national
 Fund        Jun-03    Funds             1    1/925       1    1/775
Janus
 Global
 Life                 Health/Bio-
 Sciences             technology
 Fund        Dec-98   Funds             63  112/177      19   29/160
Janus
 Global               Science &
 Technology            Technology
 Fund        Jan-06    Funds            40  114/288      49  125/259
Janus
Global
Oppor-
tunities
Fund         Jun-01   Global Funds      98  367/375      93  280/302
----------------------------------------------------------------------
Value Funds
----------------------------------------------------------------------
Janus Mid
 Cap Value
 Fund -               Mid-Cap
 Inv(2)      Aug-98    Value Funds      48  135/286      40   89/222
Janus Small
 Cap Value
 Fund -               Small-Cap
 Inv.(1,2)   Feb-97    Core Funds       66  434/657      69  350/508
----------------------------------------------------------------------
Income
 Funds
----------------------------------------------------------------------
Janus                 Intermediate
 Flexible              Inv Grade
 Bond Fund   Dec-91    Debt Funds       38  183/486      50  212/426
Janus High-           High Current
 Yield Fund  Dec-03    Yield Funds      22   97/458      51  201/396
                      Short
Janus                  Investment
 Short-Term            Grade Debt
 Bond Fund   Jun-03    Funds            43   99/233      27   51/192
Janus
 Federal
 Tax-Exempt           General Muni
 Fund        Feb-05    Debt Funds       61  155/256      85  209/247
----------------------------------------------------------------------

Janus Investment Funds ("JIF")           Lipper Rankings Based
                                     on Total Returns as of 9/30/06
                                   -----------------------------------
                                        5-Year           10-Year
                                   ----------------- ----------------

                                   Percen-           Percen-
                                     tile    Rank/    tile    Rank/
              PM      Lipper         Rank    Total    Rank    Total
            Inception  Category      (%)      Funds    (%)     Funds
           ---------- ------------ -----------------------------------
Growth
 Funds
----------------------------------------------------------------------
                      Large-Cap
                       Growth
Janus Fund   Jan-06    Funds            34  168/498      42   71/171
Janus                 Large-Cap
 Twenty                Growth
 Fund(1)     Aug-97    Funds             4   18/498       1    1/171
Janus                 Large-Cap
 Mercury               Growth
 Fund        Jan-06    Funds            30  149/498       6   10/171
Janus                 Multi-Cap
 Olympus               Growth
 Fund(1)     Jun-06    Funds            42  123/295      28   28/101
Janus                 Mid-Cap
 Enterprise            Growth
 Fund        Jan-02    Funds            32  117/373      64   88/137
Janus                 Small-Cap
 Venture               Growth
 Fund(1)     Jan-01    Funds            16   58/370      39   51/132
                      Multi-Cap
Janus Orion            Growth
 Fund        Jun-00    Funds             5   13/295       -        -
Janus                 Small-Cap
 Triton                Growth
 Fund        Jun-06    Funds             -        -       -        -
Janus                 Multi-Cap
 Research              Growth
 Fund        Feb-05    Funds             -        -       -        -
----------------------------------------------------------------------
Core Funds
----------------------------------------------------------------------
Janus
 Growth and
 Income               Large-Cap
 Fund        Dec-03    Core Funds       24  136/587       3    6/257
                      Mixed-Asset
Janus                  Target
 Balanced              Alloc. Mod.
 Fund        Apr-05    Funds            44   96/219       3     2/93
Janus
 Contrarian           Multi-Cap
 Fund        Feb-00    Core Funds        2    6/440       -        -
Janus
Funda-
mental
Equity                Large-Cap
 Fund        Apr-05    Core Funds        5   25/587       2    3/257
INTECH
 Risk-
 Managed              Multi-Cap
 Stock Fund  Feb-03    Core Funds        -        -       -        -
----------------------------------------------------------------------
International/
 Global Funds
----------------------------------------------------------------------
Janus
 Worldwide
 Fund        Jun-04   Global Funds      98  227/233      68    61/89
Janus                 Inter-
 Overseas             national
 Fund        Jun-03    Funds             9   57/641       4    9/249
Janus
 Global
 Life                 Health/Bio-
 Sciences             technology
 Fund        Dec-98   Funds             50   65/129       -        -
Janus
 Global               Science &
 Technology            Technology
 Fund        Jan-06    Funds            55  124/227       -        -
Janus
Global
Oppor-
tunities
Fund         Jun-01   Global Funds      39   90/233       -        -
----------------------------------------------------------------------
Value Funds
----------------------------------------------------------------------
Janus Mid
 Cap Value
 Fund -               Mid-Cap
 Inv(2)      Aug-98    Value Funds      27   41/151       -        -
Janus Small
 Cap Value
 Fund -               Small-Cap
 Inv.(1,2)   Feb-97    Core Funds       58  230/397       -        -
----------------------------------------------------------------------
Income
 Funds
----------------------------------------------------------------------
Janus                 Intermediate
 Flexible              Inv Grade
 Bond Fund   Dec-91    Debt Funds       19   63/340      29   44/151
Janus High-           High Current
 Yield Fund  Dec-03    Yield Funds      61  196/321      14   16/120
                      Short
Janus                  Investment
 Short-Term            Grade Debt
 Bond Fund   Jun-03    Funds            41   57/139      23    16/71
Janus
 Federal
 Tax-Exempt           General Muni
 Fund        Feb-05    Debt Funds       72  158/220      83  120/145
----------------------------------------------------------------------

Janus Investment Funds ("JIF")            Lipper Rankings Based
                                     on Total Returns as of 9/30/06
                                   -----------------------------------
                                           Since PM Inception
                                   -----------------------------------


              PM      Lipper          Percentile            Rank/
            Inception  Category        Rank (%)          Total Funds
           ---------- ------------ -----------------------------------
Growth
 Funds
----------------------------------------------------------------------
                      Large-Cap
                       Growth
Janus Fund   Jan-06    Funds                      ++
Janus                 Large-Cap
 Twenty                Growth
 Fund(1)     Aug-97    Funds                      4             9/234
Janus                 Large-Cap
 Mercury               Growth
 Fund        Jan-06    Funds                      ++
Janus                 Multi-Cap
 Olympus               Growth
 Fund(1)     Jun-06    Funds                      ++
Janus                 Mid-Cap
 Enterprise            Growth
 Fund        Jan-02    Funds                     12            47/392
Janus                 Small-Cap
 Venture               Growth
 Fund(1)     Jan-01    Funds                     25            86/344
                      Multi-Cap
Janus Orion            Growth
 Fund        Jun-00    Funds                     31            69/223
Janus                 Small-Cap
 Triton                Growth
 Fund        Jun-06    Funds                      ++
Janus                 Multi-Cap
 Research              Growth
 Fund        Feb-05    Funds                      2             5/401
----------------------------------------------------------------------
Core Funds
----------------------------------------------------------------------
Janus
 Growth and
 Income               Large-Cap
 Fund        Dec-03    Core Funds                12            80/717
                      Mixed-Asset
Janus                  Target
 Balanced              Alloc. Mod.
 Fund        Apr-05    Funds                      8            31/389
Janus
 Contrarian           Multi-Cap
 Fund        Feb-00    Core Funds                11            34/333
Janus
Funda-
mental
Equity                Large-Cap
 Fund        Apr-05    Core Funds                 2            10/809
INTECH
 Risk-
 Managed              Multi-Cap
 Stock Fund  Feb-03    Core Funds                23           125/565
----------------------------------------------------------------------
International/
 Global Funds
----------------------------------------------------------------------
Janus
 Worldwide
 Fund        Jun-04   Global Funds               90           286/320
Janus                 Inter-
 Overseas             national
 Fund        Jun-03    Funds                      1             1/759
Janus
 Global
 Life                 Health/Bio-
 Sciences             technology
 Fund        Dec-98   Funds                      37             18/48
Janus
 Global               Science &
 Technology            Technology
 Fund        Jan-06    Funds                      ++
Janus
Global
Oppor-
tunities
Fund         Jun-01   Global Funds               25            57/227
----------------------------------------------------------------------
Value Funds
----------------------------------------------------------------------
Janus Mid
 Cap Value
 Fund -               Mid-Cap
 Inv(2)      Aug-98    Value Funds                4              3/77
Janus Small
 Cap Value
 Fund -               Small-Cap
 Inv.(1,2)   Feb-97    Core Funds                13            17/134
----------------------------------------------------------------------
Income
 Funds
----------------------------------------------------------------------
Janus                 Intermediate
 Flexible              Inv Grade
 Bond Fund   Dec-91    Debt Funds                 4              2/55
Janus High-           High Current
 Yield Fund  Dec-03    Yield Funds               40           159/403
                      Short
Janus                  Investment
 Short-Term            Grade Debt
 Bond Fund   Jun-03    Funds                     25            45/180
Janus
 Federal
 Tax-Exempt           General Muni
 Fund        Feb-05    Debt Funds                53           133/251
----------------------------------------------------------------------
                   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%     47.8%     36.4%     53.3%        75.0%
2nd Quartile          20.0%     30.4%     40.9%     26.7%        15.0%
3rd Quartile          24.0%      8.7%     18.2%     13.3%         5.0%
4th Quartile          12.0%     13.0%      4.5%      6.7%         5.0%
----------------------------------------------------------------------

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

    C-1006-307 / 1-15-07

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 9/30/06(1)
                                   -----------------------------------

                                                                 Life
                         Inception                                of
                            Date   1 Year 3 Year 5 Year 10 Year   Fund
                         --------- ------ ------ ------ ------- ------
Growth Funds
----------------------------------------------------------------------
Janus Fund                   2/70   6.72   8.91   4.36    5.85  13.67
Janus Twenty Fund(2)         4/85   3.87  15.28   7.69    9.53  13.10
Janus Mercury Fund(3)        5/93   5.99  11.19   4.61    7.94  12.15
Janus Olympus Fund(2)       12/95   4.13  11.26   6.84    8.90  10.72
Janus Enterprise Fund        9/92   9.17  16.41   9.49    6.15  11.10
Janus Venture Fund(2,4)      4/85   7.95  14.07  12.79    8.44  13.16
Janus Orion Fund(5,6)        6/00  12.24  20.01  13.21      --  (1.52)
Janus Triton Fund(4)         2/05   9.88     --     --      --  13.17
Janus Research Fund(5,7)     2/05  15.06     --     --      --  18.09
----------------------------------------------------------------------
Core Funds
----------------------------------------------------------------------
Janus Growth and Income
 Fund(4)                     5/91   4.90  13.33   6.82   10.80  13.12
Janus Balanced Fund          9/92   9.75   9.84   6.71    9.61  11.13
Janus Contrarian
 Fund(5,9)                   2/00  13.55  22.20  16.64      --   8.92
Janus Fundamental Equity
 Fund(8)                     6/96   8.93  16.17   9.12   11.39  12.60
INTECH Risk-Managed
 Stock Fund(10,11)           2/03   8.36  15.86     --      --  18.11
----------------------------------------------------------------------
International/Global
 Funds
----------------------------------------------------------------------
Janus Worldwide Fund(10)     5/91  10.12  10.32   4.25    6.13  10.78
Janus Overseas
 Fund(5,8,10,12,13)          5/94  36.62  31.63  18.68   13.26  14.14
Janus Global Life
 Sciences Fund(8,10)        12/98   1.41  12.07   4.05      --   9.47
Janus Global Technology
 Fund(5,8,10)               12/98   5.76   7.91   5.07      --   2.56
Janus Global
 Opportunities Fund(10)      6/01   6.02  11.96  10.99      --   8.53
----------------------------------------------------------------------
Value Funds
----------------------------------------------------------------------
Janus Small Cap Value
 Fund - Inv.(2,6,14)        10/87   5.91  14.03  13.20   14.71  14.21
Janus Mid Cap Value Fund
 - Inv.(6,8,15)              8/98   9.31  17.09  15.43      --  17.08
----------------------------------------------------------------------
Income Funds
----------------------------------------------------------------------
Janus Flexible Bond
 Fund(8,16,17)               7/87   3.32   2.98   4.98    6.08   7.50
Janus High-Yield
 Fund(6,8,10,16,17)         12/95   7.80   7.90   8.53    6.96   8.20
Janus Short-Term Bond
 Fund(8,16,17,18)            9/92   3.63   2.39   2.92    4.81   4.67
Janus Federal Tax-Exempt
 Fund(8,16,17,18.19)         5/93   3.81   2.91   3.98    4.47   4.60
----------------------------------------------------------------------
    Notes:

    (1) All figures unaudited.

    (2) Closed to new investors.

    (3) Effective on or about December 31, 2006, Janus Mercury Fund
        will change its name to "Janus Research Fund." The Fund will
        continue to be managed with the same investment objective and
        strategies.

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

    (5) This Fund may have significant exposure to emerging markets.
        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.

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

    (7) Effective on or about December 31, 2006, Janus Research Fund
        will change its name to "Janus Global Research Fund" and adopt
        an additional investment strategy to normally invest at least
        40% of its net assets in securities of issuers from different
        countries located throughout the world, excluding the United
        States.

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

    (9) The Fund held approximately 15.74% of its assets in
        Indian securities as of June 30, 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.

    (10) 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.

    (11) 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.

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

    (13) The Fund held approximately 15.1% and 15.37% of its assets in
        India and Brazil securities, respectively, as of June 30,
        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.

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

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

    (16) 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.

    (17) As of September 30, 2006, the 30-day SEC Yield was 3.90% on
        Janus Federal Tax-Exempt Fund, 4.68% on Janus Flexible Bond
        Fund, 7.68% on Janus High-Yield Fund and 4.68% on Janus
        Short-Term Bond Fund.

    (18) 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 September 30, 2006 would have been 4.26% and 3.46%,
        respectively and total returns would have been lower.

    (19) 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 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.

Source: Janus Capital Group Inc.

Contact: Janus Capital Group Inc. Shelley Peterson, 303-316-5625 or James Aber, 303-336-4513