Joe Sullivan Legg Mason Global Head of Distribution

Jeff Nattans Legg Mason Head of M&A and Business Development

Ron Dewhurst Legg Mason Head of Global Investment Managers

Company Press Release

LEGG MASON ANNOUNCES REALIGNMENT OF ITS SENIOR MANAGEMENT TEAM

BALTIMORE, December 20, 2010 – Legg Mason Inc., (NYSE:LM) today announced that it has realigned its senior management responsibilities as it focuses on its future growth opportunities. The new leadership team will have clear responsibilities for key strategic areas of the business as Legg Mason enters calendar year 2011, having announced a number of streamlining initiatives in 2010.

The new executive team structure is as follows:

Joseph A. Sullivan has been named Head of Global Distribution. As Legg Mason’s Chief Administrative Officer, he led the firm’s streamlining initiatives. He will now draw upon his former extensive sales and brokerage experience at Legg Mason Wood Walker and Stifel Nicholas, and will seek to enhance Legg Mason’s penetration on a global basis by adopting best practices from both the Americas and International distribution teams. He will also continue to oversee the execution of the transition plans established for the Company’s recent streamlining initiative to its conclusion.

Ronald R. Dewhurst has been named Head of Global Investment Managers. As Head of International for Legg Mason, he led the expansion of the firm’s international business. He will build upon his success in building asset management businesses at J.P. Morgan and as the CEO of I00F, an asset manager in Australia. He will now work with Legg Mason’s investment affiliates worldwide on strategic initiatives to build their business, and will be based in New York.

Jeffrey A. Nattans has been named Head of M&A and Business Development. Mr. Nattans will lead the organization’s efforts on strategy, mergers & acquisitions and strategic affiliate initiatives. Since joining from Goldman Sachs in 2006, he has worked on strategy and growth initiatives for the firm and will also draw upon his recent experience in working with the firm’s specialized investment managers.

Peter H. Nachtwey has been named to an expanded Chief Financial Officer role. As announced last week, Mr. Nachtwey will join Legg Mason in January, after serving as CFO of The Carlyle Group, where he also held responsibility for many of the firm’s operational and technology functions. Mr. Nachtwey spent more than 25 years at Deloitte & Touche, ultimately leading the first integrated Investment Management practice of the Big Four accounting firms. At Legg Mason, he will take on responsibility for many critical administrative areas within the Corporate Center.

Thomas P. Lemke, Legg Mason’s General Counsel, joins the firm’s Executive Committee. Mr. Lemke joined Legg Mason as General Counsel in 2005, after more than 20 years experience in the industry. He was previously a partner at Morgan Lewis, where he held a senior role in the firm’s asset management practice. He began his career at the SEC, culminating as Chief Counsel of the Investment Management Division. He will have expanded responsibility that includes legal and compliance, the U.S. Fund Boards, Global Fund Administration, Internal Audit and Risk Management.

All five executives report to Mark Fetting and together form the firm’s Executive Committee. David R. Odenath, formerly the Head of the Americas for Legg Mason, will leave Legg Mason at year end to pursue other opportunities.

Mark R. Fetting, Chairman and CEO, said: “This new management structure is designed to be a catalyst for a global organization that moves with single purpose and direction as we take advantage of opportunities in 2011 and beyond. Our management team and our affiliates are now fully engaged in playing offense. I will focus on executing the strategy we have laid out to solidify our position as a top global asset management firm. Collectively, we will focus on the three key strategic drivers of growth: maintaining and expanding our group of outstanding investment managers, delivering strategic value from our corporate center, and continuing to build a balanced portfolio of affiliates across asset classes, geographies and channels.”

Finally, I would like to thank Dave Odenath for his many contributions as a member of our executive team. Dave has built a dedicated team in the Americas Division with impressive momentum around diversifying our distribution partners and innovative products,“ Mr. Fetting concluded.

About Legg Mason

Legg Mason is a global asset management firm with $668 billion in assets under management as of November 30, 2010. 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).