Legg Mason proposes merger of Symmetry Fund and Diversifund

Legg Mason Canada Inc. today announced a proposed merger between Legg Mason Symmetry Fund and Legg Mason Diversifund.

Unitholders will be asked to vote on the merger at a special meeting of unitholders scheduled to take place on October 13 in Toronto.

Legg Mason also proposes to change the auditorsof the following funds:

• Legg Mason T-Plus Fund;
• Legg Mason Private Client Canadian Bond Portfolio (Institutional series only);
• Legg Mason Canadian Index Plus Bond Fund;
• Legg Mason Canadian Active Bond Fund;
• Legg Mason Accufund, Legg Mason Symmetry Fund;
• Legg Mason Diversifund;
• Legg Mason Private Client Canadian Equity Portfolio (Institutional Series Units only);
• Legg Mason Canadian Core Equity Fund;
• Legg Mason Canadian Sector Equity Fund (Institutional Series Units only);
• Legg Mason North American Equity Fund;
• Legg Mason Canadian Growth Equity Fund;
• Legg Mason Brandywine Fundamental Value U.S. Equity Fund;
• Legg Mason Batterymarch U.S. Equity Fund;
• Legg Mason U.S. Value Fund and;
• Legg Mason International Equity Fund.

The current auditors of the funds are Deloitte and Touche LLP and Legg Masonproposes a change in auditors to PricewaterhouseCoopers LLP to ensure the independence of the funds’ auditors from the auditors of Legg Mason Canada and its parent company, Legg Mason, Inc.

Unitholders will vote on the proposed change in auditors at a special meeting to take place on October 13. The change in auditors will be effective March 30, 2006.

LMC also announced a change, effective August 15, in the portfolio advisor of Legg Mason U.S. Value Fund from Legg Mason Funds Management, Inc. to Legg Mason Capital Management, Inc.

Legg Mason Capital Management, Inc. is an affiliate of LMC and Legg Mason Funds Management, Inc. Mary Chris Gay and Bill Miller will continue to manage Legg Mason U.S. Value Fund.