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<SEC-DOCUMENT>0001411686-08-000084.txt : 20080215
<SEC-HEADER>0001411686-08-000084.hdr.sgml : 20080215
<ACCEPTANCE-DATETIME>20080215172035
ACCESSION NUMBER:		0001411686-08-000084
CONFORMED SUBMISSION TYPE:	DEFC14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20080215
DATE AS OF CHANGE:		20080215
EFFECTIVENESS DATE:		20080215

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FRANKLIN UNIVERSAL TRUST
		CENTRAL INDEX KEY:			0000833040
		IRS NUMBER:				943077602
		STATE OF INCORPORATION:			MA
		FISCAL YEAR END:			0831

	FILING VALUES:
		FORM TYPE:		DEFC14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-05569
		FILM NUMBER:		08623748

	BUSINESS ADDRESS:	
		STREET 1:		ONE FRANKLIN PARKWAY
		CITY:			SAN MATEO
		STATE:			CA
		ZIP:			94403-1906
		BUSINESS PHONE:		650-312-2000

	MAIL ADDRESS:	
		STREET 1:		ONE FRANKLIN PARKWAY
		CITY:			SAN MATEO
		STATE:			CA
		ZIP:			94403-1906

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Bulldog Investors General Partnership
		CENTRAL INDEX KEY:			0001364773
		IRS NUMBER:				562585535
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEFC14A

	BUSINESS ADDRESS:	
		STREET 1:		60 HERITAGE DRIVE
		CITY:			PLEASANTVILLE
		STATE:			NY
		ZIP:			10570
		BUSINESS PHONE:		9147475262

	MAIL ADDRESS:	
		STREET 1:		60 HERITAGE DRIVE
		CITY:			PLEASANTVILLE
		STATE:			NY
		ZIP:			10570
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEFC14A
<SEQUENCE>1
<FILENAME>form14a.htm
<DESCRIPTION>DEFC 14A FILED BY BULLDOG INVESTORS GENERAL PARTNERSHIP, ISSUER FRANKLIN UNIVERSAL TRUST 02-15-2008
<TEXT>
<html>

  <head>
    <title>form14a.htm</title>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><a name="eolPage1"/><a name="FIS_TOP_OF_DOCUMENT"/><a name="DEFC14A06824004_03072008_HTM"/><a name="FIS_FORM">UNITED
      STATES</a></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>SECURITIES
      AND EXCHANGE COMMISSION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Washington,
      D.C. 20549</strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>SCHEDULE
      14A</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(Rule
      14a-101)</font></div>
    <div><br></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Proxy
      Statement Pursuant to Section 14(a) of the Securities Exchange Act of
      1934</strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>(Amendment
      No.&#160;)</strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Filed
      by
      the Registrant&#160;&#160;&#160; <font style="DISPLAY: inline;" face="Wingdings">&#168;</font></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Filed
      by
      a Party other than the Registrant&#160;&#160;&#160; <font style="DISPLAY: inline;" face="Wingdings">x &#160;</font></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Check
      the
      appropriate box:</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font style="DISPLAY: inline;" face="Wingdings">o</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Preliminary
      Proxy Statement</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font style="DISPLAY: inline;" face="Wingdings">&#168;</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Confidential,
      for Use of the Commission Only (as permitted by Rule14a-6(e)(2))</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font style="DISPLAY: inline;" face="Wingdings">x</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Definitive
      Proxy Statement</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font style="DISPLAY: inline;" face="Wingdings">&#168;</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Definitive
      Additional Materials</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font style="DISPLAY: inline;" face="Wingdings">&#168;</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Soliciting
      Material Under Rule 14a-12</font></div>
    <div><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="top" width="96%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><strong>FRANKLIN
                UNIVERSAL TRUST</strong></font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="96%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">(Name
                of Registrant as Specified in Its Charter)</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="96%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="96%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">.</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="96%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><strong>Bulldog
                Investors General Partnership</strong></font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="96%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">(Name
                of Persons(s) Filing Proxy Statement, if Other Than the
                Registrant)</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Payment
      of Filing Fee (Check the appropriate box):</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font style="DISPLAY: inline;" face="Wingdings">x</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;No
      fee required.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font style="DISPLAY: inline;" face="Wingdings">&#168;</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Fee
      computed on table below per Exchange Act Rules 14a-6(i)(1) and
      0-11.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div><br></div>
    <div><br></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div><a name="eolPage2"><br></a>
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            </div>
          </div>
          <div id="PN" style="PAGE-BREAK-AFTER: always">
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
            </div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="2">
            </div>
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          <div id="HDR">
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            </div>
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        </div><br></div>
    </div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;(1)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Title
      of each class of securities to which transaction applies:</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;(2)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Aggregate
      number of securities to which transaction applies:</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font style="DISPLAY: inline; FONT-SIZE: 10pt;">&#160;(3)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt;">Per
      unit price or other underlying
      value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth
      the
      amount on which the filing fee is calculated and state how </font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font style="DISPLAY: inline; FONT-SIZE: 10pt;"><font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;</font>&#160;it
      was
      determined):</font></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;(4)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Proposed
      maximum aggregate value of transaction:</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;(5)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Total
      fee paid:</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font style="DISPLAY: inline;" face="Wingdings">&#168;</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Fee
      paid previously with preliminary materials:</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font style="DISPLAY: inline;" face="Wingdings">&#168;</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Check
      box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2)
      and identify the filing for which the offsetting fee was paid
      previously.&#160;&#160;Identify the </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;&#160;&#160;&#160;
      previous filing by registration statement number, or the form or schedule and
      the date of its filing.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;(1)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Amount
      previously paid:</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;(2)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Form,
      Schedule or Registration Statement No.:</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;(3)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Filing
      Party:</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><a name="TAB1">&#160;(4)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Date
      Filed:</a></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><a name="eolPage3"><br></a></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Bulldog
      Investors General Partnership, Park 80 West - Plaza Two, Saddle Brook, NJ
      07663</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>(201)
      556-0092 // Fax: (201)556-0097 //
      info@bulldoginvestors.com</strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 108pt;"></font>February
      11, 2008</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Dear
      Fellow Shareholder of Franklin Universal Trust:</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">I
      am
      writing to you on behalf of Bulldog Investors General Partnership, the largest
      shareholder of Franklin Universal Trust.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Since
      the
      Trust&#8217;s launch almost twenty years ago, its stock price has declined from $10
      per share to less than $7 currently.&#160;&#160;Also, the Trust&#8217;s shares have
      traded continuously at a discount to their net asset value (NAV) for almost
      six
      years.&#160;&#160;The most recent month-end closing discounts of the Trust&#8217;s
      shares are as follows: 8/31/07: 9.9%; 9/30/07: 10.6%; 10/31/07: 10.4%; 11/07:
      13.4%; 12/07: 10.7%; and 1/31/08: 9.3%.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">We
      believe it is time to consider meaningful measures to address the persistent
      discount problem including open-ending the Trust.&#160;&#160;Consequently, we
      have determined to offer shareholders of the Trust an alternative to continuing
      the status quo.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">First,
      we
      are seeking to elect trustees that will consider more meaningful measures to
      permanently address the discount including open-ending the
      Trust.&#160;&#160;Second, <strong><u>we are commencing a tender offer to
      purchase up to 5 million shares of Trust&#8217;s common stock at a price of 95% of
      NAV.</u></strong>&#160;&#160;If our nominees are elected at the annual meeting
      on March 14<font style="DISPLAY: inline; FONT-SIZE: 10pt;"><sup>th</sup></font>
      we will then consummate our tender offer.&#160;&#160;Please see the enclosed
      announcement for more details.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Our
      tender offer is in response to the board&#8217;s failure to authorize a self-tender
      offer by the Trust that would allow shareholders to sell shares at a premium
      to
      the market price.&#160;&#160;We think the incumbent trustees may be reluctant to
      authorize a self-tender offer because it would lead to a reduction in the
      advisor&#8217;s fees and the trustees are beholden to the advisor for their
      positions.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Therefore,
      this year you have a clear choice.&#160;&#160;You can vote for the status quo
      and continue to be frustrated as the Trust&#8217;s stock price languishes below
      NAV.&#160;&#160;Or you can vote for nominees who are committed to permanently
      eliminating the discount and whose election will allow you to participate in
      a
      tender offer for shares of the Trust at a premium to the market
      price.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Please
      vote your proxy online at <u>WWW.PROXYVOTE.COM</u> or by telephone at
      1-800-454-8683 if your shares are held in street name.&#160;&#160;Alternatively,
      you can mail the GREEN proxy card in the enclosed envelope but please do it
      today.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 252pt;"></font><font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;</font>Very
      truly yours,</font></div>
    <div><br></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 216pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;</font>Phillip
      Goldstein</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 216pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 216pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 216pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 216pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 216pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 216pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
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    </div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>BULLDOG
      INVESTORS GENERAL PARTNERSHIP COMMENCES TENDER OFFER </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>TO
      PURCHASE UP TO 5,000,000 SHARES OF BENEFICIAL INTEREST OF FT AT
</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>95%
      OF NET ASSET VALUE PER SHARE</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">On
      February 15, 2008, Bulldog Investors General Partnership (&#8220;BIGP&#8221;) commenced a
      tender offer to purchase up to 5,000,000 of the outstanding shares of beneficial
      interest, $0.01 par value (the &#8220;Shares&#8221;), of Franklin Universal Trust (&#8220;FT&#8221;)
      from each of the shareholders of FT upon the terms and subject to the conditions
      set forth in the Offer to Purchase February 15, 2008 (the &#8220;Offer to Purchase&#8221;),
      and in the related Letter of Transmittal, as each may be supplemented or amended
      from time to time (which together constitute the &#8220;Offer&#8221;).&#160;&#160;The offer
      is for a price (the &#8220;Offer Price&#8221;), net to the seller in cash (subject to a $50
      processing fee that BIGP will charge for processing each Letter of Transmittal,
      applicable withholding taxes and any brokerage fees that may apply), without
      interest thereon, equal to 95% of the net asset value (&#8220;NAV&#8221;) per Share
      determined as of the close of the regular trading session of the New York Stock
      Exchange (the &#8220;NYSE&#8221;), on the Expiration Date (defined below).&#160;&#160;The
      Shares are traded on the NYSE under the symbol &#8220;FT.&#8221;&#160;&#160;The NAV as of
      the close of the regular trading session of the NYSE on February 13, 2008 was
      $6.56 per Share.&#160;&#160;During the pendency of the Offer, current NAV
      quotations can be obtained from various public websites that report prices
      of
      mutual funds and stocks under the symbol &#8220;XFUTX.&#8221;&#160;&#160;Shareholders may
      also call BIGP at (201) 556-0092 between the hours of 9:00 a.m. and 5:00 p.m.
      Eastern Time, Monday through Friday (except holidays) for current NAV
      quotations.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Shareholders
      of FT will be able to obtain a free copy of the Offer to Purchase, related
      Letter of Transmittal and other Offer documents (when they become available)
      at
      a website maintained by BIGP at <u>www.bulldoginvestorstenderoffer.com</u> or by
      contacting BIGP by Email at info@bulldoginvestors.com or telephone at (201)
      556-0092.&#160;&#160;BIGP will promptly deliver such documents to any requesting
      shareholder of FT (by U.S. mail or Email, as requested).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">THE
      OFFER
      AND WITHDRAWAL RIGHTS WILL EXPIRE AT 5:00&#160;P.M., NEW YORK CITY TIME, ON
      MARCH 21, 2008 UNLESS THE OFFER IS EXTENDED (THE &#8220;EXPIRATION
      DATE&#8221;).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">There
      are
      no conditions to the Offer based on a minimum number of Shares tendered, the
      availability of financing, or the success of the Offer.&#160;&#160;However, the
      Offer is conditioned upon, among other things, (1) that each of BIGP&#8217;s nominees
      for election to the Board of Trustees of FT, as set forth in the preliminary
      proxy statement (the &#8220;Proxy Statement&#8221;) filed by BIGP on January 4, 2008, be
      duly elected at the 2008 Annual Shareholders&#8217; Meeting of FT (the &#8220;Election
      Condition&#8221;), (2) the absence of certain legal actions and proceedings which
      would prohibit or adversely affect consummation of the Offer, (3) the absence
      of
      competing tender offers, (4) that there be no material change with respect
      to
      FT&#8217;s or BIGP&#8217;s financial condition, (5) the absence of certain changes in the
      financial markets, and (6) that BIGP has not agreed with FT to terminate the
      Offer.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">BIGP
      expressly reserve the right, in its sole discretion, at any time and from time
      to time, (1) to extend the period of time during which the Offer is open and
      thereby delay acceptance for payment of, and the payment for, any Shares, (2)
      upon the occurrence of any of the conditions specified in the Offer to Purchase,
      including, but not limited to, the failure to satisfy the Election Condition,
      prior to the Expiration Date, to terminate the Offer and not accept for payment
      any Shares, and (3) to amend the Offer in any respect prior to the Expiration
      Date.&#160;&#160;Notice of any such extension, termination, or amendment will
      promptly be disseminated to Shareholders in a manner reasonably designed to
      inform Shareholders of such change in compliance with Rule 14d-4(c) under the
      Securities Exchange Act of 1934 (the &#8220;Exchange Act&#8221;).&#160;&#160;In the case of
      an extension of the Offer, such extension will be followed by a press release
      or
      public announcement which will be issued no later than 9:00 a.m., Eastern Time,
      on the next business day after the scheduled Expiration Date, in accordance
      with
      Rule 14e-1(d) under the Exchange Act.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Provided
      the conditions to the Offer are satisfied, including, but not limited to, the
      Election Condition, and BIGP accepts a shareholder&#8217;s Shares for payment and
      consummates the Offer, such shareholder will receive payment as promptly as
      practicable following the expiration of the Offer, in accordance with the terms
      of the Offer to Purchase.&#160;&#160;In all cases, payment for Shares purchased
      pursuant to the Offer will be made only after timely receipt by BIGP of
      (i)&#160;share certificates representing such Shares or a timely Book-Entry
      Confirmation (as defined in the Offer to Purchase) with respect thereto,
      (ii)&#160;the Letter of Transmittal (or a facsimile thereof), properly completed
      and duly executed, with any required signature guarantees or an Agent&#8217;s Message
      (as defined in the Offer to Purchase) in connection with a book-entry transfer
      and (iii)&#160;any other documents required by the Letter of Transmittal. The
      per share consideration paid to any holder of Shares pursuant to the Offer
      will
      be the highest per share consideration paid to any other holder of such Shares
      pursuant to the Offer. <strong>Under no circumstances will interest on the
      purchase price for Shares be paid by BIGP, regardless of any extension of the
      Offer or any delay in making such payment.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">If
      more
      than 5,000,000 Shares are validly tendered and not properly withdrawn prior
      to
      the Expiration Date, BIGP will, upon the terms of, and subject to the conditions
      to, the Offer, purchase 5,000,000 Shares on a pro rata basis (with adjustments
      to avoid purchases of fractional Shares) based upon the number of Shares validly
      tendered by the Expiration Date and not withdrawn, as more fully described
      in
      the Offer to Purchase.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">BIGP
      reserves the right to increase or decrease the number of Shares BIGP is seeking
      in the Offer, subject to applicable laws and regulations described in the Offer
      to Purchase.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Tenders
      of Shares made pursuant to the Offer are irrevocable, except that Shares
      tendered pursuant to the Offer may be withdrawn at any time on or prior to
      the
      Expiration Date and, unless theretofore accepted for payment as provided in
      the
      Offer to Purchase, may also be withdrawn at any time prior to acceptance for
      payment.&#160;&#160;In order for a withdrawal to be effective, a notice of
      withdrawal must be timely received by BIGP at its address set forth in the
      Offer
      to Purchase. Any such notice of withdrawal must specify the name of the person
      who tendered the Shares to be withdrawn, the number of Shares to be withdrawn
      and the name of the registered holder of the Shares to be withdrawn, if
      different from the name of the person who tendered the Shares. If share
      certificates evidencing Shares to be withdrawn have been delivered or otherwise
      identified to BIGP, then, prior to the physical release of such certificates,
      the serial numbers shown on such certificates must be submitted to BIGP and,
      unless such Shares have been tendered by a financial institution (including
      most
      commercial banks, savings and loan associations and brokerage houses) that
      is a
      participant in the Security Transfer Agents Medallion Program, the New York
      Stock Exchange Medallion Signature Guarantee Program or the Stock Exchange
      Medallion Program (an &#8220;Eligible Institution&#8221;), the signatures on the notice of
      withdrawal must be guaranteed by an Eligible Institution. If Shares have been
      delivered pursuant to the book-entry transfer procedures as set forth in
      Section&#160;3 of the Offer to Purchase, any notice of withdrawal must also
      specify the name and number of the account at DTC to be credited with the
      withdrawn Shares and otherwise comply with DTC&#8217;s procedures. All questions as to
      the form and validity (including time of receipt) of notices of withdrawal
      will
      be determined by BIGP, in its sole discretion, whose determination shall be
      final and binding. Any Shares properly withdrawn will be deemed not validly
      tendered for purposes of the<a name="eolPage97"/><a name="A2175221ZEX_99_A1J_HTM_PAGE_KA6298_1_3">
      Offer, but may be retendered at any
      subsequent time prior to the expiration of the Offer by following any of the
      procedures described in Section&#160;3 of the Offer to
      Purchase.</a></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">BIGP
      reserves the right to purchase, following the consummation or termination of
      the
      Offer, additional Shares in the open market, in privately negotiated
      transactions, in another tender offer or exchange offer or
      otherwise.&#160;&#160;In addition, BIGP may take no further action to acquire
      additional Shares.&#160;&#160;Any additional purchases of Shares could be at a
      price greater or less than the price to be paid for Shares in the Offer and
      could be for cash or other consideration.&#160;&#160;Alternatively, BIGP or any
      of its affiliates may sell or otherwise dispose of any or all Shares acquired
      in
      the Offer or otherwise.&#160;&#160;Each such transaction may be effected on
      terms and at prices then determined by BIGP or the applicable affiliate, which
      may vary from the terms and price in the Offer.&#160;&#160;Purchaser does not
      intend to provide for a subsequent offering period.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Any
      questions or requests for assistance may be directed to BIGP at the telephone
      number or Email address listed below. Additional copies of the Offer to
      Purchase, the Letter of Transmittal and other tender offer materials may be
      obtained from BIGP as set forth below, and will be furnished promptly at BIGP&#8217;s
      expense. You may also contact your broker, dealer, commercial bank, trust
      company or other nominee for assistance, concerning the Offer.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Bulldog
      Investors General Partnership</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Park
      80
      West, Plaza Two, Suite 750</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Saddle
      Brook, NJ 07663</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Telephone:&#160;&#160;(201)
      556-0092</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Email:&#160;&#160;<strong><u>info@bulldoginvestors.com</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>This
      announcement and the description contained herein is neither an offer to
      purchase nor a solicitation of an offer to sell shares of FT.&#160;&#160;The
      Offer is being made only through the Offer to Purchase, related Letter of
      Transmittal and other related Offer materials.&#160;&#160;All of these
      documents, and the Proxy Statement, contain important information about the
      Offer and shareholders of FT are urged to read them carefully before any
      decision is made with respect to the Offer.&#160;&#160;Shareholders of FT will
      be able to obtain a free copy of each of these documents (when they become
      available) at a website maintained by BIGP at
<u>www.bulldoginvestorstenderoffer.com</u> or by contacting BIGP by Email at
<u>info@bulldoginvestors.com</u> or telephone at (201) 556-0092.&#160;&#160;BIGP
      will promptly deliver such documents to any requesting shareholder of FT (by
      U.S. mail or Email, as requested).&#160;&#160;These documents will also be
      available at no charge at the website maintained by the Securities and Exchange
      Commission at <u>http://www.sec.gov</u>.</strong></font></div>
    <div>&#160;</div>
    <div><br>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>PROXY
      STATEMENT OF BULLDOG INVESTORS GENERAL PARTNERSHIP, A STOCKHOLDER OF FRANKLIN
      UNIVERSAL TRUST IN OPPOSITION TO THE SOLICITATION BY THE BOARD OF TRUSTEES
      AT
      THE ANNUAL MEETING OF SHAREHOLDERS ON MARCH 14, 2008</strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Bulldog
      Investors General Partnership (&#8220;BIGP&#8221;), a stockholder of Franklin Universal
      Trust (the &#8220;Trust&#8221;), is sending this proxy statement and the enclosed GREEN
      proxy card to stockholders of the Trust of record as of January 14,
      2008.&#160;&#160;We are soliciting a proxy to vote your shares at the Annual
      Meeting of Shareholders (the &#8220;Meeting&#8221;) which is scheduled for March 14,
      2008.&#160;&#160;<u>Please refer to the Trust&#8217;s proxy soliciting material for
      additional information concerning the Meeting and the matters to be considered
      by shareholders including the election of trustees.</u>&#160;&#160;This proxy
      statement and the enclosed GREEN proxy card are first being sent to shareholders
      on or about February 11, 2008.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>INTRODUCTION</u></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">There
      are
      two matters to be voted upon at the Meeting: (1) the election of eleven
      trustees; and (2) a shareholder proposal enable shareholders to realize net
      asset value (&#8220;NAV&#8221;) for their shares. We are soliciting a proxy to vote your
      shares (1) FOR the election of our six nominees as trustees and (2) FOR the
      shareholder proposal.</font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>REASONS
      FOR THE SOLICITATION</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      Trust&#8217;s shares have traded continuously at a discount to NAV for almost six
      years.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Management&#8217;s
      efforts to control the discount have been ineffective.&#160;&#160;We are seeking
      to elect trustees that will consider more meaningful measures to address the
      discount including open-ending the Trust.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>CONDITIONAL
      TENDER OFFER</u></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">In
      conjunction with this proxy solicitation, we are conducting a tender offer
      to
      purchase five million shares of the Trust at 95% of NAV conditioned on the
      election of our six nominees as trustees.&#160;&#160;Our tender offer will close
      shortly after their election is confirmed.&#160;&#160;The purposes of our tender
      offer is (1) to allow shareholders to sell a portion of their shares at a price
      that is above the market price and (2) to elect trustees that will consider
      measures to afford all shareholders an opportunity to realize NAV for their
      shares.</font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>HOW
      PROXIES WILL BE VOTED</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">If
      you
      complete and return a GREEN proxy card to us and unless you direct otherwise
      your shares will be voted FOR the election of our nominees and FOR the
      shareholder proposal to enable shareholders to realize net asset NAV for their
      shares.&#160;&#160;In addition, you will be granting the proxy holders
      discretionary authority to vote on any other matters that may come before the
      Meeting including matters relating to the conduct of the Meeting.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>VOTING
      REQUIREMENTS</u></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">A
      plurality&#160;of the votes cast is sufficient to elect a
      trustee.&#160;&#160;Approval of the shareholder proposal to enable shareholders
      to realize NAV for their shares requires the affirmative vote of a majority
      of
      the votes cast.&#160;&#160;Abstentions will be ignored in determining the votes
      cast with respect to the shareholder proposal.</font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>REVOCATION
      OF PROXIES</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">You
      may
      revoke any proxy prior to its exercise by: (i) delivering a written revocation
      to us; (ii) executing and delivering a later dated proxy; or (iii) voting in
      person at the Meeting.&#160;&#160;Attendance at the Meeting will not in and of
      itself revoke a proxy.&#160;&#160;There is no limit on the number of times you
      may revoke your proxy before it is exercised.&#160;&#160;Only your latest dated
      proxy will be counted.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>PROPOSAL
      1: ELECTION OF TRUSTEES</u></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">At
      the
      Meeting, we intend to nominate the six persons named below for election as
      trustees.&#160;&#160;Each nominee has consented to being named in this proxy
      statement and to serve as a trustee if elected.&#160;&#160;There are no
      arrangements or understandings between BIGP or any partner of BIGP and any
      nominee in connection with the nominations nor do we know of any material
      conflicts of interest that would prevent any nominee from acting in the best
      interest of the Trust.&#160;&#160;<u>Please refer to the Trust&#8217;s proxy
      soliciting material for additional information concerning the election of
      trustees.</u></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>Phillip
      Goldstein</u> (born 1945); 60 Heritage Drive, Pleasantville, NY 10570 &#8211; Since
      1992, Mr. Goldstein has been an investment advisor and a principal of the
      general partner of five investment partnerships in the Bulldog Investors group
      of funds: Opportunity Partners L.P., Opportunity Income Plus Fund
      L.P.,&#160;Full Value Partners L.P.,&#160;Full Value Offshore Ltd. and Full
      Value Special Situations Fund L.P.&#160;&#160;He has been a director of the
      Mexico Equity and Income Fund since 2000 and Brantley Capital Corporation since
      2001.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font style="DISPLAY: inline; FONT-SIZE: 10pt;"><u>Gerald
      Hellerman</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt;"> ( born 1937 );
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt;">5431
      NW 21st Avenue, Boca Raton, FL
      33496 </font><font style="DISPLAY: inline; FONT-SIZE: 10pt;">&#8211; </font><font style="DISPLAY: inline; FONT-SIZE: 10pt;">Mr.
      Hellerman is a director of
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt;">MVC Acquisition Corp.
      and
      is a</font><font style="DISPLAY: inline; FONT-SIZE: 10pt;"> director and Chairman
      of the Audit Committee of MVC Capital, Inc. Mr. Hellerman owns and has served
      as
      Managing Director of Hellerman Associates, a financial and corporate consulting
      firm, since the firm&#8217;s inception in 1993. He currently serves as a director,
      chief financial officer and chief compliance officer for The Mexico Equity
      and
      Income Fund, Inc. (NYSE: MXE), </font>and is <font style="DISPLAY: inline; FONT-SIZE: 10pt;">a manager and Chairman
      of the Audit
      Committee of the Old Mutual Absolute Return and Emerging Managers fund complex,
      which consists of six funds, a director of Brantley Capital Corporation and
      a
      director and Chairman of the Audit Committee of AirNet Systems,
      Inc.</font></font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>Rajeev
      Das</u> (born 1968); 68 Lafayette Ave., Dumont, NJ 07628 -- Principal of Bulldog
      Investors, a group of investment funds and Managing Member of the general
      partner of Opportunity Income Plus L.P.; Currently director of Mexico Equity
      and
      Income Fund, Inc. (since 2001) In 2006 served as director of Brantley
      Capital.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>Andrew
      Dakos</u> (born 1966); Park 80 West, Plaza Two, Suite 750, Saddle Brook, NJ
      07663 &#8211; Mr. Dakos is a self-employed investment advisor and a principal of the
      general partner of five investment partnerships in the Bulldog Investors group
      of funds: Opportunity Partners L.P., Opportunity Income Plus Fund L.P., Full
      Value Partners L.P., Full Value Special Situations Fund L.P., and Full Value
      Offshore L.P.&#160;&#160;He has been a director of the Mexico Equity and Income
      Fund since 2001 and Brantley Capital Corporation since 2007.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>Glenn
      </u><u>Goodstein</u> (born 1963); 2308 Camino Robledo, Carlsbad, CA 92009 &#8211; Mr.
      Goodstein is a registered investment advisor and managing member of the general
      partner of Mercury Partners LP, an investment partnership. He is a director
      of
      Mexico Equity and Income Fund.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>Steve
      Samuels</u> (born 1956); 72 Coleytown Road, Westport, CT 06880 -- Mr.
      Samuels&#160;&#160;is a principal of the general partner of five investment
      partnerships in the Bulldog Investors group of funds: Opportunity Partners
      L.P.,
      Opportunity Income Plus Fund L.P., Full Value Partners L.P., Full Value Special
      Situations Fund L.P., and Full Value Offshore L.P.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">None
      of
      our nominees is an interested person of the Trust nor does any nominee
      personally own any shares of the Trust except that Mr. Goldstein and his wife
      jointly beneficially own 72,897 shares which were purchased between 2003 and
      2008.&#160;&#160;Clients of Mr. Goodstein own 23,200 shares.&#160;&#160;Mr.
      Dakos, Mr. Das, Mr. Goodstein and Mr. Goldstein are each a principal of one
      or
      more of the entities that are general partners of BIGP which beneficially owns
      2,290,480 shares of the Trust which it (or its partners) purchased between
      2003
      and 2008. There have been no sales by any of the aforementioned
      persons.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;&#160;&#160;&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>PROPOSAL
      2: THE SHAREHOLDERS ASK THE TRUSTEES TO TAKE THE STEPS </u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>NECESSARY
      TO MERGE THE FRANLIN UNIVERSAL TRUST (FT) INTO THE FRANKLIN INCOME FUND (FKINX),
      AN OPEN-END FUND, OR OTHERWISE PERMIT SHAREHOLDERS TO REALIZE NET ASSET VALUE
      (NA V) FOR THEIR SHARES.</u></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>Please
      refer to the Trust&#8217;s proxy soliciting material for the supporting statement and
      the opposition statement for to this proposal.</u>This proposal, if adopted, is
      not binding on the board.&#160;&#160;Unless instructions to the contrary are
      given, your proxy will be voted in favor of this proposal.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>THE
      SOLICITATION</u></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Persons
      affiliated with or employed by BIGP or its affiliates may assist us in the
      solicitation of proxies.&#160;&#160;Banks, brokerage houses and other
      custodians, nominees and fiduciaries will be requested to forward this proxy
      statement and the enclosed GREEN proxy card to the beneficial owners of common
      and preferred shares for whom they hold shares of record.&#160;&#160;We will
      reimburse these organizations for their reasonable out-of-pocket
      expenses.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Initially,
      we will bear all of the expenses related to this proxy
      solicitation.&#160;&#160;Because we believe that all shareholders will benefit
      from this solicitation, we intend to seek, subject to any applicable regulatory
      requirements, reimbursement of our expenses from the
      Fund.&#160;&#160;Shareholders will not be asked to vote on the reimbursement of
      our solicitation expenses which we estimate will be $100,000.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>LITIGATION</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">On
      January 31, 2007, the Acting Director of the Securities Division of the
      Massachusetts Secretary of State (the &#8220;Securities Division&#8221;) filed a complaint
      against Bulldog Investors, Messrs. Goldstein, Samuels, Dakos and Das and certain
      related parties (the &#8220;Bulldog Parties&#8221;) alleging that they violated
      Massachusetts law by making information about certain unregistered investments
      available on their website and by sending material about such investments to
      an
      individual who requested additional information.&#160;&#160;On October 17, 2007,
      the Securities Division issued a cease and desist order based on the same
      allegations and ordered that a fine be imposed on the Bulldog Parties of
      $25,000, but stayed the imposition of sanctions until the Superior Court issued
      a ruling on the Bulldog Parties' motion described below.&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      Bulldog Parties filed a lawsuit in Massachusetts Superior Court to enjoin the
      Securities Division&#8217;s action on, among others grounds, that it violates the
      Bulldog Parties' right of free speech under the First Amendment.&#160; On
      December 21, 2007, the Massachusetts Superior Court ruled that information
      communicated by the Bulldog Parties &#8220;has not been shown to be either misleading
      or related to unlawful activity&#8221; but denied the Bulldog Parties&#8217; motion for a
      preliminary injunction.&#160; The Bulldog Parties have filed an appeal of the
      denial by the Massachusetts Superior Court of their motion for a preliminary
      injunction.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">BIGP
      is
      the soliciting stockholder.&#160;&#160;As of February 11, 2008, BIGP
      beneficially owned 2,290,480 shares of the Trust, all of which were purchased
      between 2003 and 2008.&#160;&#160;&#160;As noted above, four of our nominees are
      affiliated with BIGP.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">February
      11, 2008</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>PROXY
      CARD</strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">This
      proxy is solicited in Opposition to the Board of Trustees of Franklin Universal
      Trust (the &#8220;Trust&#8221;) by Bulldog Investors General Partnership (&#8220;BIGP&#8221;) for the
      2008 Annual Meeting of Shareholders.&#160;&#160;The undersigned hereby appoints
      Phillip Goldstein, Rajeev Das, Andrew Dakos, and Tom Antonucci and each of
      them,
      as the undersigned&#8217;s proxies, with full power of substitution, to attend the
      Annual Meeting of Shareholders of the Trust and any adjourned or postponed
      Meeting, and to vote on all matters that come before the Meeting the number
      of
      shares that the undersigned would be entitled to vote if present in person,
      as
      specified below.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(INSTRUCTIONS:&#160;&#160;Mark
      votes by placing an &#8220;x&#8221; in the appropriate [&#160;&#160;].)</font></div>
    <div><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top">
            <td align="right" style="WIDTH: 18pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">1.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ELECTION
                OF SIX (OF
                ELEVEN)&#160;&#160;TRUSTEES</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">[
      ] FOR
      ANDREW
      DAKOS&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;[
      ] WITHHOLD AUTHORITY</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">[
      ] FOR
      PHILLIP
      GOLDSTEIN&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;[
      ] WITHHOLD AUTHORITY</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">[
      ] FOR
      GERALD
      HELLERMAN&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;[
      ] WITHHOLD AUTHORITY</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">[
      ] FOR
      RAJEEV
      DAS&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;[
      ] WITHHOLD AUTHORITY</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">[
      ] FOR
      GLENN
      GOODSTEIN&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;[
      ] WITHHOLD AUTHORITY</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">[
      ] FOR
      STEVE
      SAMUELS&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;[
      ] WITHHOLD AUTHORITY</font></div>
    <div><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top">
            <td align="right" style="WIDTH: 18pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">2.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">THE
                SHAREHOLDERS ASK THE TRUSTEES TO TAKE THE STEPS NECESSARY TO MERGE
                THE
                FRANLIN UNIVERSAL TRUST <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(FT)
                INTO THE FRANKLIN INCOME FUND (FKINX), AN OPEN-END FUND, OR OTHERWISE
                PERMIT SHAREHOLDERS TO REALIZE NET ASSET VALUE (NA V) FOR THEIR
                SHARES.</font></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">FOR
      [&#160;&#160;&#160;]&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;AGAINST
      [&#160;&#160;&#160;]&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;ABSTAIN
      [&#160;&#160;&#160;]</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">If
      your
      shares are held in street name please vote your proxy online at
<u>WWW.PROXYVOTE.COM</u> or by telephone at
      1-800-454-8683.&#160;&#160;Alternatively, you can sign and date below and mail
      the GREEN proxy instruction card in the enclosed envelope. Your shares will
      be
      voted as directed.&#160;&#160;If no direction is made, this proxy will be voted
      FOR the election of the nominees named above, and FOR Proposal 2.&#160;&#160;The
      undersigned hereby acknowledges receipt of the proxy statement dated February
      11, 2008 of BIGP and revokes any proxy previously executed proxy
      instructions.</font></div>
    <div><br></div>
    <div><br></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Signature(s)___________________________________&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Dated:
      _______________</font><br></div><br>
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