Company Press Release

Sam Peters Named Co-Manager of the Legg Mason Capital Management Value Trust

BALTIMORE, Oct. 21 -- Legg Mason Capital Management (LMCM) announced today that Sam Peters will become a co-portfolio manager of the Legg Mason Capital Management Value Trust, effective November 1, 2010. Mr. Peters will serve as a co-portfolio manager with Bill Miller, who has managed the fund for nearly 30 years. Mary Chris Gay will continue to serve as the assistant portfolio manager of the fund.

Mr. Miller, LMCM's Chief Investment Officer (CIO), said, "I am confident that our clients and shareholders, many of whom know Sam, will be pleased with his addition to the Value Trust team. I've worked closely with Sam over the last five years. He is a fundamental, data driven investor. He thinks independently and understands how people and institutions behave in a variety of market conditions. I've co-managed two other strategies with him and look forward to working with him on Value Trust." In addition to co-managing the Value Trust, Mr. Miller will remain LMCM's CIO, the portfolio manager of the Legg Mason Capital Management Opportunity Trust, and a co-manager of three other investment strategies.

Mr. Peters said, "I came to LMCM for the opportunity to work with Bill and the very talented LMCM team. Joining Bill and Mary Chris on the Value Trust is an honor, but I know that my addition to the team will ultimately be judged by the quality of the performance we are able to deliver to our clients and shareholders." In addition to co-managing the Value Trust, Mr. Peters will remain the portfolio manager of the Legg Mason Capital Management Special Investment Trust and a co-manager of one other investment strategy.

Jennifer Murphy, LMCM's Chief Executive Officer said, "We believe that a thoughtful succession process is vital to fulfilling our core commitment to deliver excellent investment results to our clients over the long term. This step ensures our ability to continue to serve Value Trust shareholders through the consistent application of our investment philosophy and process."

Prior to joining LMCM in 2005, Mr. Peters worked for Fidelity Management & Research. He earned a B.A. in economics from the College of William & Mary and an M.B.A. from the University of Chicago. He received his CFA designation in 1997.

Legg Mason Capital Management specializes in long-term, valuation based investing for institutional and retail clients around the world. LMCM had $15.5 billion in assets under management at September 30, 2010.

Legg Mason, Inc. is a global asset management firm, with $674 billion in assets under management as of September 30, 2010. Through its affiliates, the Company provides active asset management in many major investment centers throughout the world. Legg Mason is headquartered in Baltimore, Maryland and its common stock is listed on the New York Stock Exchange (symbol: LM).