Edgar Filing: TEMPLETON EMERGING MARKETS INCOME FUND

SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE
SECURITIES EXCHANGE ACT OF 1934
(Amendment No. ______________)

Filed by the Registrant /X/
Filed by a party other than the Registrant / /

Check the appropriate box:
/ / Preliminary proxy statement
/ / Confidential, for Use of the Commission Only (as permitted by
Rule 14a-6(e)(2))
/X/ Definitive proxy statement
/ / Definitive additional materials
/ / Soliciting material pursuant to Sec. 240.14a-12

TEMPLETON EMERGING MARKETS INCOME FUND
------------------------------------------------
(Name of Registrant as Specified in Its Charter)

------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of filing fee (Check the appropriate box):

/X/ No fee required.

/ / Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.

(1) Title of each class of securities to which transactions applies:

(2) Aggregate number of securities to which transactions applies:

(3) 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 it was determined):

(4) Proposed maximum aggregate value of transaction:

(5) Total fee paid:

/ / Fee paid previously with preliminary materials.
/ / 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. Identify the previous filing by registration
statement number, or the Form or Schedule and the date of its filing.

(1) Amount previously paid:

(2) Form, Schedule or Registration Statement No.:

(3) Filing party:

(4) Date filed:

LOGO

TEMPLETON EMERGING MARKETS INCOME FUND

IMPORTANT SHAREHOLDER INFORMATION

These materials are for the Annual Meeting of Shareholders scheduled for
February 23, 2007 at 12 Noon, Eastern time. The enclosed materials discuss the
proposal (the "Proposal") to be voted on at the meeting, and contain the Notice
of Meeting, proxy statement and proxy card. A proxy card is, in essence, a
ballot. When you vote your proxy, it tells us how you wish to vote on important
issues relating to Templeton Emerging Markets Income Fund (the "Fund"). If you
specify a vote on the Proposal, your proxy will be voted as you indicate. If
you simply sign and date the proxy card, but do not specify a vote on the
Proposal, your proxy will be voted FOR the Proposal.

We urge you to spend a few minutes reviewing the Proposal in the proxy
statement. Then, please fill out and sign the proxy card and return it to us so
that we know how you would like to vote. When shareholders return their proxies
promptly, the Fund may be able to save money by not having to conduct
additional mailings.

We welcome your comments. If you have any questions, call Fund Information
at 1-800/DIAL BEN(R) (1-800-342-5236).

TELEPHONE AND INTERNET VOTING

For your convenience, you may be able to vote by telephone or through the
Internet, 24 hours a day. If your account is eligible, instructions are
enclosed.

LOGO

TEMPLETON EMERGING MARKETS INCOME FUND

NOTICE OF 2007 ANNUAL MEETING OF SHAREHOLDERS

The Annual Meeting of Shareholders (the "Meeting") of Templeton Emerging
Markets Income Fund (the "Fund") will be held at the Fund's offices, 500 East
Broward Boulevard, 21st Floor, Fort Lauderdale, Florida 33394-3091 on
February 23, 2007 at 12 Noon, Eastern time.

During the Meeting, shareholders of the Fund will vote on the following
Proposal:

. The election of five Trustees of the Fund to hold office for the
terms specified.

By Order of the Board of Trustees,

Robert C. Rosselot
Secretary

January 19, 2007

Please sign and promptly return the proxy card in the self-addressed envelope
regardless of the number of shares you own.

TEMPLETON EMERGING MARKETS INCOME FUND

PROXY STATEMENT

..INFORMATION ABOUT VOTING

Who is asking for my vote?

The Trustees of Templeton Emerging Markets Income Fund (the "Fund"), in
connection with the Fund's Annual Meeting of Shareholders, have requested your
vote.

Who is eligible to vote?

Shareholders of record at the close of business on December 29, 2006 are
entitled to be present and to vote at the Meeting or any adjourned Meeting.
Each share of record is entitled to one vote (and a proportionate fractional
vote for each fractional share) on each matter presented at the Meeting. The
Notice of Meeting, the proxy card, and the proxy statement were first mailed to
shareholders of record on or about January 19, 2007.

On what issue am I being asked to vote?

You are being asked to vote on the election of five nominees to the position
of Trustee.

How do the Fund's Trustees recommend that I vote?

The Trustees unanimously recommend that you vote FOR the election of the
five nominees.

How do I ensure that my vote is accurately recorded?

You may attend the Meeting and vote in person or you may complete and return
the enclosed proxy card. If you are eligible to vote by telephone or through
the Internet, instructions are enclosed.

Proxy cards that are properly signed, dated and received at or prior to the
Meeting will be voted as specified. If you specify a vote on the Proposal, your
proxy will be voted as you indicate. If you simply sign, date and return the
proxy card, but do not specify a vote on the Proposal, your shares will be
voted FOR the election of all nominees as Trustee.

May I revoke my proxy?

You may revoke your proxy at any time before it is voted by forwarding a
written revocation or a later-dated proxy to the Fund that is received by the
Fund at or prior to the Meeting, or by attending the Meeting and voting in
person.

What if my shares are held in a brokerage account?

If your shares are held by your broker, then in order to vote in person at
the Meeting, you will need to obtain a "Legal Proxy" from your broker and
present it to the Inspector of Election at the Meeting.

..THE PROPOSAL: ELECTION OF TRUSTEES

How are nominees selected?

The Board of Trustees of the Fund (the "Board" or the "Trustees") has a
Nominating Committee consisting of Edith E. Holiday (Chairperson), Frank J.
Crothers and Frank A. Olson, none of whom is an "interested person" of the Fund
as defined by the Investment Company Act of 1940, as amended (the "1940 Act").
Trustees who are not interested persons of the Fund are referred to as the
"Independent Trustees," and Trustees who are interested persons of the Fund are
referred to as the "Interested Trustees."

The Nominating Committee is responsible for selecting candidates to serve as
Trustees and recommending such candidates (a) for selection and nomination as
Independent Trustees by the incumbent Independent Trustees and the full Board;
and (b) for selection and nomination as Interested Trustees by the full Board.
In considering a candidate's qualifications, the Nominating Committee generally
considers the potential candidate's educational background, business or
professional experience, and reputation. In addition, the Nominating Committee
has established as minimum qualifications for Board membership as an
Independent Trustee: (1) that such candidate be independent from relationships
with the Fund's investment manager and other principal service providers both
within the terms and the spirit of the statutory independence requirements
specified under the 1940 Act and the rules thereunder; (2) that such candidate
demonstrate an ability and willingness to make the considerable time
commitment, including personal attendance at Board meetings, believed necessary
to his or her function as an effective Board member; and (3) that such
candidate have no continuing relationship as a director, officer or board
member of any U.S. registered investment company other than those within the
Franklin Templeton Investments fund complex.

When the Board has or expects to have a vacancy, the Nominating Committee
receives and reviews information on individuals qualified to be recommended to
the full Board as nominees for election as Trustees, including any
recommendations by "Qualifying Fund Shareholders" (as defined below). Such
individuals are evaluated based upon the criteria described above. To date, the
Nominating Committee has been able to identify, and expects to continue to be
able to identify, from its own resources an ample number of qualified
candidates. The Nominating Committee, however, will review recommendations from
Qualifying Fund Shareholders to fill vacancies on the Board if these
recommendations are submitted in writing and addressed to the Nominating
Committee at the Fund's offices and are presented with appropriate background
material concerning the candidate that demonstrates his or her ability to serve
as a Trustee, including as an Independent Trustee, of the Fund. A Qualifying
Fund Shareholder is a shareholder who (i) has continuously owned of record, or
beneficially through a financial intermediary, shares of the Fund having a net
asset value of not less than two hundred fifty thousand dollars ($250,000)
during the twenty-four month period prior to submitting the recommendation; and
(ii) provides a written notice to the Nominating Committee containing the
following information: (a) the name and address of the Qualifying Fund
Shareholder making the recommendation; (b) the number of shares of the Fund
which are owned of record and beneficially by the Qualifying Fund Shareholder
and the length of time that the shares have been owned by the Qualifying Fund
Shareholder; (c) a description of all arrangements and understandings between
the Qualifying Fund Shareholder and any other person or persons (naming such
person or persons) pursuant to which the recommendation is being made; (d) the
name, age, date of birth, business address and residence address of the person
or persons being recommended; (e) such other information regarding each person
recommended by the Qualifying Fund Shareholder as would be required to be
included in a proxy statement filed pursuant to the proxy rules of the U.S.
Securities and Exchange Commission ("SEC") had the nominee been nominated by
the Board; (f) whether the shareholder making the recommendation believes the
person recommended would or would not be an "interested person" of the Fund, as
defined in the 1940 Act; and (g) the written consent of each person recommended
to serve as a Trustee of the Fund if so nominated and elected/appointed.

The Nominating Committee may amend these procedures from time to time,
including the procedures relating to the evaluation of nominees and the process
for submitting recommendations to the Nominating Committee.

The Board has adopted and approved a formal written charter for the
Nominating Committee. A copy of the charter was included in the Fund's proxy
statement for its 2005 Annual Meeting of Shareholders.

Who are the nominees and Trustees?

The Board is divided into three classes. Each class has a term of three
years. Each year the term of office of one class expires. This year, the terms
of four Trustees expire. Charles B. Johnson, Gregory E. Johnson, Frank J.
Crothers and Frank A. Olson have been nominated for three-year terms, set to
expire at the 2010 Annual Meeting of Shareholders. Robert E. Wade has been
nominated for a two-year term, set to expire at the 2009 Annual Meeting of
Shareholders. These terms continue, however, until successors are duly elected
and qualified. All of the nominees are currently members of the Board with the
exception of Gregory E. Johnson. Among these nominees, Charles B. Johnson and
Gregory E. Johnson are deemed to be Interested Trustees. Gregory E. Johnson and
Robert E. Wade are standing for election by shareholders of the Fund for the
first time. An incumbent Interested Trustee recommended Gregory E. Johnson and
Robert E. Wade for consideration by the Nominating Committee as nominees for
Trustee. In addition, all of the current nominees and Trustees are also
directors or trustees of other Franklin(R) funds and/or Templeton(R) funds.

Certain Trustees of the Fund hold director and/or officer positions with
Franklin Resources, Inc. ("Resources") and its affiliates. Resources is a
publicly owned holding company, the principal shareholders of which are Charles
B. Johnson and Rupert H. Johnson, Jr., who owned approximately 17.5% and 14.9%,
respectively, of its outstanding shares as of August 31, 2006. Resources, a
global investment management organization operating as Franklin Templeton
Investments, is primarily engaged, through various subsidiaries, in providing
investment management, share distribution, transfer agent and administrative
services to a family of investment companies. Resources is a New York Stock
Exchange, Inc. ("NYSE") listed holding company (NYSE: BEN). Charles B. Johnson,
Chairman of the Board, Trustee and Vice President of the Fund, and Gregory E.
Johnson, nominee for Trustee of the Fund, are father and son. Rupert H.
Johnson, Jr., Vice President of the Fund, is the brother of Charles B. Johnson
and the uncle of Gregory E. Johnson. There are no other family relationships
among any of the Trustees or nominees for Trustee.

Each nominee currently is available and has consented to serve if elected.
If any of the nominees should become unavailable, the designated proxy holders
will vote in their discretion for another person or persons who may be
nominated as Trustees.

Listed below, for the nominees and Trustees, are their names, ages and
addresses, as well as their positions and length of service with the Fund,
principal occupations during the past five years, the number of portfolios in
the Franklin Templeton Investments fund complex that they oversee, and other
directorships held by the nominee or Trustee.

Nominees for Independent Trustee to serve until 2010 Annual Meeting of
Shareholders:

Number of
Portfolios in
Franklin
Templeton
Investments
Fund Complex
Overseen or to be
Length of Overseen by
Name, Age and Address Position Time Served Trustee* Other Directorships Held
------------------------------------------------------------------------------------------------------------

Frank J. Crothers (62) Trustee Since 1999 20 None
500 East Broward Blvd.
Suite 2100
Fort Lauderdale, FL 33394-3091

Principal Occupation During Past 5 Years:
Chairman, Island Corporate Holding Ltd.; Director and Vice Chairman, Caribbean Utilities Co. Ltd.; Director,
Provo Power Company Ltd.; director of various other business and nonprofit organizations; and formerly,
Chairman, Atlantic Equipment & Power Ltd. (1977-2003).
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Frank A. Olson (74) Trustee Since 2003 103 Director, Hess Corporation
500 East Broward Blvd. (formerly Amerada Hess
Suite 2100 Corporation) (exploration and
Fort Lauderdale, FL 33394-3091 refining of oil and gas) and
Sentient Jet (private jet service);
and formerly, Director, Becton
Dickinson and Company (medical
technology), Cooper Industries,
Inc. (electrical products and tools
and hardware), Health Net, Inc.
(formerly Foundation Health)
(integrated managed care), The
Hertz Corporation (car rental),
Pacific Southwest Airlines, The
RCA Corporation, Unicom
(formerly Commonwealth
Edison), UAL Corporation
(airlines) and White Mountains
Insurance Group, Ltd. (holding
company).

Principal Occupation During Past 5 Years:
Chairman Emeritus, The Hertz Corporation (since 2000) (Chairman of the Board (1980-2000) and Chief
Executive Officer (1977-1999)); and formerly, Chairman of the Board, President and Chief Executive Officer,
UAL Corporation.
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Nominee for Independent Trustee to serve until 2009 Annual Meeting of
Shareholders:

Robert E. Wade (60) Trustee Since 2006 30 Director, El Oro and
500 East Broward Blvd. Exploration Co., p.l.c.
Suite 2100 (investments) and ARC
Fort Lauderdale, FL 33394-3091 Wireless Solutions, Inc.
(wireless components and
network products).

Principal Occupation During Past 5 Years:
Practicing attorney.
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Nominees for Interested Trustee to serve until 2010 Annual Meeting of Shareholders:
**Charles B. Johnson (73) Chairman of Chairman of the 142 None
One Franklin Parkway the Board, Board and
San Mateo, CA 94403-1906 Trustee and Trustee since
Vice 1995 and Vice
President President since
1993

Principal Occupation During Past 5 Years:
Chairman of the Board, Member--Office of the Chairman and Director, Franklin Resources, Inc.; and officer
and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of
41 of the investment companies in Franklin Templeton Investments.
--------------------------------------------------------------------------------------------------------------------
**Gregory E. Johnson (45) Nominee N/A 7 None
One Franklin Parkway
San Mateo, A 94403-1906

Principal Occupation During Past 5 Years:
President and Chief Executive Officer, Franklin Resources, Inc.; President and Director, Franklin Agency, Inc.;
Vice President and Director, Franklin Advisers, Inc.; Director, Templeton Global Advisors Limited and
Fiduciary Trust Company International; President, Templeton Worldwide, Inc.; and officer and/or director or
trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc.
--------------------------------------------------------------------------------------------------------------------

Independent Trustees serving until 2009 Annual Meeting of Shareholders:
David W. Niemiec (57) Trustee Since 2005 20 Director, Emeritus Corporation
500 East Broward Blvd. (assisted living) and OSI
Suite 2100 Pharmaceuticals, Inc.
Fort Lauderdale, FL 33394-3091 (pharmaceutical products).

Principal Occupation During Past 5 Years:
Advisor, Saratoga Partners (private equity fund); Director, various private companies; and formerly, Managing
Director, Saratoga Partners (1998-2001) and SBC Warburg Dillon Read (investment banking) (1997-1998);
Vice Chairman, Dillon, Read & Co. Inc. (investment banking) (1991-1997); and Chief Financial Officer, Dillon,
Read & Co. Inc. (1982-1997).
--------------------------------------------------------------------------------------------------------------------

Larry D. Thompson (61) Trustee Since 2005 20 None
500 East Broward Blvd.
Suite 2100
Fort Lauderdale, FL 33394-3091

Principal Occupation During Past 5 Years:
Senior Vice President--Government Affairs, General Counsel and Secretary, PepsiCo, Inc. (consumer products);
and formerly, Director, Delta Airlines (aviation) (2003-2005) and Providian Financial Corp. (1997-2001);
Senior Fellow of The Brookings Institution (2003-2004); Visiting Professor, University of Georgia School of
Law (2004); and Deputy Attorney General, U.S. Department of Justice (2001-2003).
------------------------------------------------------------------------------------------------------------------

Independent Trustees serving until the 2008 Annual Meeting of Shareholders:
Harris J. Ashton (74) Trustee Since 1993 142 Director, Bar-S Foods (meat
500 East Broward Blvd. packing company).
Suite 2100
Fort Lauderdale, FL 33394-3091

Principal Occupation During Past 5 Years:
Director of various companies; and formerly, Director, RBC Holdings, Inc. (bank holding company) (until
2002); and President, Chief Executive Officer and Chairman of the Board, General Host Corporation (nursery
and craft centers) (until 1998).
------------------------------------------------------------------------------------------------------------------
Edith E. Holiday (54) Trustee Since 1996 143 Director, Hess Corporation
500 East Broward Blvd. (formerly Amerada Hess
Suite 2100 Corporation) (exploration and
Fort Lauderdale, FL 33394-3091 refining of oil and gas), H.J.
Heinz Company (processed
foods and allied products), RTI
International Metals, Inc.
(manufacture and distribution
of titanium), Canadian
National Railway (railroad)
and White Mountains
Insurance Group, Ltd. (holding
company).

Principal Occupation During Past 5 Years:
Director or Trustee of various companies and trusts; and formerly, Assistant to the President of the United States
and Secretary of the Cabinet (1990-1993); General Counsel to the United States Treasury Department (1989-
1990); and Counselor to the Secretary and Assistant Secretary for Public Affairs and Public Liaison--United
States Treasury Department (1988-1989).
------------------------------------------------------------------------------------------------------------------

Constantine D. Tseretopoulos (52) Trustee Since 1999 20 None
500 East Broward Blvd.
Suite 2100
Fort Lauderdale, FL 33394-3091

Principal Occupation During Past 5 Years:
Physician, Lyford Cay Hospital (1987-present); director of various nonprofit organizations; and formerly,
Cardiology Fellow, University of Maryland (1985-1987) and Internal Medicine Resident, Greater Baltimore
Medical Center (1982-1985).
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* We base the number of portfolios on each separate series of the U.S.
registered investment companies within the Franklin Templeton Investments
fund complex. These portfolios have a common investment manager or
affiliated investment managers, and also may share a common underwriter.

** Charles B. Johnson and Gregory E. Johnson are "interested persons" of the
Fund as defined by the 1940 Act. The 1940 Act limits the percentage of
interested persons that can comprise a fund's board of trustees. Charles B.
Johnson is considered an interested person of the Fund due to his position
as an officer, director and major shareholder of Resources, which is the
parent company of the Fund's investment manager, and his position with the
Fund. Gregory E. Johnson is considered as an interested person of the Fund
due to his position as an officer of Resources. Charles B. Johnson is the
father of Gregory E. Johnson. The remaining Trustees of the Fund are
Independent Trustees.

The following tables provide the dollar range of the equity securities of
the Fund and of all funds in the Franklin Templeton Investments fund complex
beneficially owned by the Trustees and nominees for Trustee as of December 31,
2006:

Aggregate Dollar Range of Equity
Independent Trustees: Securities in all Funds in the
Dollar Range of Equity Franklin Templeton
Name of Trustee Securities in the Fund Investments Fund Complex
------------------------------------------------------------------------------------

Harris J. Ashton............ $1--$10,000 Over $100,000
Frank J. Crothers........... None Over $100,000
Edith E. Holiday............ $1--$10,000 Over $100,000
David W. Niemiec............ None Over $100,000
Frank A. Olson.............. None Over $100,000
Larry D. Thompson........... None Over $100,000
Constantine D. Tseretopoulos None Over $100,000
Robert E. Wade.............. None Over $100,000

Aggregate Dollar Range of Equity
Interested Trustee/Nominee: Securities in all Funds in the
Dollar Range of Equity Franklin Templeton
Name of Trustee/Nominee Securities in the Fund Investments Fund Complex
------------------------------------------------------------------------------------
Charles B. Johnson.......... $10,001--$50,000 Over $100,000
Gregory E. Johnson.......... None Over $100,000

How often do the Trustees meet and what are they paid?

The role of the Trustees is to provide general oversight of the Fund's
business, and to ensure that the Fund is operated for the benefit of all of the
Fund's shareholders. The Trustees anticipate meeting at least five times during
the current fiscal year to review the operations of the Fund and the Fund's
investment performance, and more frequently as necessary. The Trustees also
oversee the services furnished to the Fund by Franklin Advisers, Inc., the
Fund's investment manager (the "Investment Manager"), and various other service
providers. The Fund currently pays the Independent Trustees an annual retainer
of $2,400 and a fee of $400 per Board meeting attended. Trustees serving on the
Audit Committee of the Fund and other investment companies in Franklin
Templeton Investments receive a flat fee of $2,000 per Audit Committee meeting
attended, a portion of which is allocated to the Fund. Members of a committee
are not compensated for any committee meeting held on the day of a Board
meeting. The compensation of Independent Trustees is established by the
Independent Trustees.

During the fiscal year ended August 31, 2006, there were five meetings of
the Board, three meetings of the Audit Committee, and five meetings of the
Nominating Committee. Each Trustee then in office attended at least 75% of the
aggregate of the total number of meetings of the Board and the total number of
meetings held by all committees of the Board on which the Trustee served. The
Fund does not currently have a formal policy regarding Trustees' attendance at
the annual shareholders' meeting. No Trustees attended the Fund's last annual
meeting held on February 24, 2006.

Independent Trustees are also reimbursed for expenses incurred in connection
with Board meetings. Certain Trustees and officers of the Fund are shareholders
of Resources and may receive indirect remuneration due to their participation
in management fees and other fees received by the Investment Manager and its
affiliates from the funds in Franklin Templeton Investments. The Investment
Manager or its affiliates pay the salaries and expenses of the officers. No
pension or retirement benefits are accrued as part of Fund expenses.

The table below indicates the total fees paid to Independent Trustees by the
Fund individually and by all of the funds in Franklin Templeton Investments
fund complex. These Trustees also serve as directors or trustees of other funds
in Franklin Templeton Investments, many of which hold meetings at different
dates and times. The Trustees and the Fund's management believe that having the
same individuals serving on the boards of many of the funds in Franklin
Templeton Investments enhances the ability of each fund to obtain, at a
relatively modest cost to each separate fund, the services of high caliber,
experienced and knowledgeable Independent Trustees who can bring their
experience and talents to, and effectively oversee the management of, several
funds.

Number of Boards within
Aggregate Total Compensation from Franklin Templeton
Compensation Franklin Templeton Investments Fund Complex
Name of Trustee from the Fund/(1)/ Investments Fund Complex/(2)/ on which Trustee Serves/(3)/
----------------------------------------------------------------------------------------------------------

Harris J. Ashton............ $4,400 $409,531 41
Frank J. Crothers........... 4,452 155,950 14
S. Joseph Fortunato/(4)/.... 4,400 403,624 N/A
Edith E. Holiday............ 4,400 422,530 42
Gordon S. Macklin/(5)/...... 4,400 409,527 N/A
Fred R. Millsaps/(6)/....... 1,418 61,762 N/A
David W. Niemiec............ 4,434 153,950 14
Frank A. Olson.............. 4,452 358,773 29
Larry D. Thompson........... 4,000 140,750 14
Constantine D. Tseretopoulos 4,452 155,950 14
Robert E. Wade/(7)/......... 2,200 310,621 17

--------
/(1)/ Compensation received for the fiscal year ended August 31, 2006.
/(2)/ Compensation received for the 12 months ended September 30, 2006.
/(3)/ We base the number of boards on the number of U.S. registered investment
companies in the Franklin Templeton Investments fund complex. This number
does not include the total number of series or funds within each
investment company for which the Board members are responsible. Franklin
Templeton Investments fund complex currently includes 46 U.S. registered
investment companies, with approximately 155 U.S. based funds or series.
/(4)/ Mr. Fortunato retired effective as of the close of business September 5,
2006.
/(5)/ Mr. Macklin retired effective as of the close of business September 12,
2006.
/(6) /Mr. Millsaps retired effective December 31, 2005.
/(7)/ Mr. Wade was appointed to the Board effective March 1, 2006.

Board members historically have followed a policy of having substantial
investments in one or more of the funds in Franklin Templeton Investments, as
is consistent with their individual financial goals. In February 1998, this
policy was formalized through adoption of a requirement that each board member
invest one-third of the fees received for serving as a director or trustee of a
Templeton fund in shares of one or more Templeton funds (which may include the
Fund) until the value of such investments equals or exceeds five times the
annual retainer and regular Board meeting fees paid to such board member.
Investments in the name of family members or entities controlled by a board
member constitute fund holdings of such board member for purposes of this
policy, and a three-year phase-in period applies to such investment
requirements for newly elected board members. In implementing such policy, a
board member's fund holdings existing on February 27, 1998, are valued as of
such date with subsequent investments valued at cost.

Who are the Executive Officers of the Fund?

Officers of the Fund are appointed by the Trustees and serve at the pleasure
of the Board. Listed below, for the Executive Officers, are their names, ages
and addresses, as well as their positions and length of service with the Fund,
and principal occupations during the past five years.

Name, Age and Address Position Length of Time Served
-------------------------------------------------------------------------------------------------------------

Charles B. Johnson Chairman of the Board, Chairman of the Board
Trustee and Vice and Trustee
President since 1995 and
Vice President since
1993
Please refer to the table "Nominees for Interested Trustee to serve until 2010 Annual Meeting of
Shareholders" for additional information about Mr. Charles B. Johnson.
-------------------------------------------------------------------------------------------------------------
Christopher J. Molumphy (44) President and Since 2002
One Franklin Parkway Chief Executive Officer--
San Mateo, CA 94403-1906 Investment Management

Principal Occupation During Past 5 Years:
Executive Vice President, Franklin Advisers, Inc.; and officer of six of the investment companies in Franklin
Templeton Investments.
-------------------------------------------------------------------------------------------------------------
Rupert H. Johnson, Jr. (66) Vice President Since 1996
One Franklin Parkway
San Mateo, CA 94403-1906

Principal Occupation During Past 5 Years:
Vice Chairman, Member--Office of the Chairman and Director, Franklin Resources, Inc.; Director, Franklin
Advisers, Inc; Senior Vice President, Franklin Advisory Services, LLC; and officer and/or director or trustee, as
the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of 44 of the investment
companies in Franklin Templeton Investments.
-----------------------------------------------------------------------------------------------------------------
Jimmy D. Gambill (59) Senior Vice President and Since 2002
500 East Broward Blvd. Chief Executive Officer--
Suite 2100 Finance and Administration
Fort Lauderdale, FL 33394-3091

Principal Occupation During Past 5 Years:
President, Franklin Templeton Services, LLC; Senior Vice President, Templeton Worldwide, Inc.; and officer of
46 of the investment companies in Franklin Templeton Investments.
-------------------------------------------------------------------------------------------------------------
Jeffrey A. Everett (42) Vice President Since 2001
P. O. Box N-7759
Lyford Cay, Nassau Bahamas

Principal Occupation During Past 5 Years:
President and Director, Templeton Global Advisors Limited; and officer of 14 of the investment companies in
Franklin Templeton Investments.
-------------------------------------------------------------------------------------------------------------

Name, Age and Address Position Length of Time Served
-------------------------------------------------------------------------------------------------------------------

John R. Kay (66) Vice President Since 1994
500 East Broward Blvd.
Suite 2100
Fort Lauderdale, FL 33394-3091

Principal Occupation During Past 5 Years:
Vice President, Templeton Worldwide, Inc.; Senior Vice President, Franklin Templeton Services, LLC; and officer
of some of the other subsidiaries of Franklin Resources, Inc. and of 32 of the investment companies in Franklin
Templeton Investments; and formerly, Vice President and Controller, Keystone Group, Inc.
-------------------------------------------------------------------------------------------------------------------
Craig S. Tyle (46) Vice President and Since 2005
One Franklin Parkway Assistant Secretary
San Mateo, CA 94403-1906

Principal Occupation During Past 5 Years:
General Counsel and Executive Vice President, Franklin Resources, Inc.; officer of 46 of the investment companies
in Franklin Templeton Investments; and formerly, Partner, Shearman & Sterling, LLP (2004-2005); and General
Counsel, Investment Company Institute (ICI) (1997-2004).
-------------------------------------------------------------------------------------------------------------------
Barbara J. Green (59) Vice President and Vice President since 2000 and
One Franklin Parkway Assistant Secretary Assistant Secretary since 2004
San Mateo, CA 94403-1906

Principal Occupation During Past 5 Years:
Vice President, Deputy General Counsel and Secretary, Franklin Resources, Inc.; Secretary and Senior Vice
President, Templeton Worldwide, Inc.; Secretary, Franklin Advisers, Inc., Franklin Advisory Services, LLC,
Franklin Investment Advisory Services, LLC, Franklin Mutual Advisers, LLC, Franklin Templeton Alternative
Strategies, Inc., Franklin Templeton Investor Services, LLC, Franklin Templeton Services, LLC, Franklin
Templeton Distributors, Inc., Templeton Investment Counsel, LLC and Templeton/Franklin Investment Services,
Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 46 of the investment companies
in Franklin Templeton Investments; and formerly, Deputy Director, Division of Investment Management,
Executive Assistant and Senior Advisor to the Chairman, Counselor to the Chairman, Special Counsel and Attorney
Fellow, U.S. Securities and Exchange Commission (1986-1995); Attorney, Rogers & Wells (until 1986); and
Judicial Clerk, U.S. District Court (District of Massachusetts) (until 1979).
---------------------------------------------------------------------------------------------------------------------
David P. Goss (59) Vice President and Since 2000
One Franklin Parkway Assistant Secretary
San Mateo, CA 94403-1906

Principal Occupation During Past 5 Years:
Senior Associate General Counsel, Franklin Templeton Investments; officer and director of one of the subsidiaries
of Franklin Resources, Inc.; and officer of 46 of the investment companies in Franklin Templeton Investments.
-------------------------------------------------------------------------------------------------------------------
Robert C. Rosselot (46) Secretary Since 2004
500 East Broward Blvd.
Suite 2100
Fort Lauderdale, FL 33394-3091

Principal Occupation During Past 5 Years:
Senior Associate General Counsel, Franklin Templeton Investments; Assistant Secretary, Franklin Resources, Inc.;
Vice President and Assistant Secretary, Templeton Investment Counsel, LLC; Vice President, Secretary and Trust
Officer, Fiduciary Trust International of the South; and officer of 14 of the investment companies in Franklin
Templeton Investments.
-------------------------------------------------------------------------------------------------------------------

Name, Age and Address Position Length of Time Served
--------------------------------------------------------------------------------------------------------------

Galen G. Vetter (55) Chief Financial Officer and Since 2004
500 East Broward Blvd. Chief Accounting Officer
Suite 2100
Fort Lauderdale, FL 33394-3091

Principal Occupation During Past 5 Years:
Senior Vice President, Franklin Templeton Services, LLC; officer of 46 of the investment companies in Franklin
Templeton Investments; and formerly, Managing Director, RSM McGladrey, Inc. (1999-2004); and Partner,
McGladrey & Pullen, LLP (1979-1987 and 1991-2004).
--------------------------------------------------------------------------------------------------------------
Gregory R. Seward (50) Treasurer Since 2004
500 East Broward Blvd.
Suite 2100
Fort Lauderdale, FL 33394-3091

Principal Occupation During Past 5 Years:
Vice President, Franklin Templeton Services, LLC; officer of 16 of the investment companies in Franklin
Templeton Investments; and formerly, Vice President, JPMorgan Chase (2000-2004) and American General
Financial Group (1991-2000).
--------------------------------------------------------------------------------------------------------------
James M. Davis (54) Chief Compliance Officer Chief Compliance Officer since
One Franklin Parkway and Vice President-- 2004 and Vice President--
San Mateo, CA 94403-1906 AML Compliance AML Compliance since 2006

Principal Occupation During Past 5 Years:
Director, Global Compliance, Franklin Resources, Inc.; officer of 46 of the investment companies in Franklin
Templeton Investments; and formerly, Director of Compliance, Franklin Resources, Inc. (1994-2001).
--------------------------------------------------------------------------------------------------------------

..ADDITIONAL INFORMATION ABOUT THE FUND

The Investment Manager. The Investment Manager of the Fund is Franklin
Advisers, Inc., a California corporation with offices at One Franklin Parkway,
San Mateo, California 94403-1906. Pursuant to an investment management
agreement, the Investment Manager manages the investment and reinvestment of
Fund assets. The Investment Manager is a wholly owned subsidiary of Resources.

The Administrator. The administrator of the Fund is Franklin Templeton
Services, LLC ("FT Services"), with offices at 500 East Broward Boulevard,
Suite 2100, Fort Lauderdale, Florida 33394-3091. FT Services is an indirect,
wholly owned subsidiary of Resources and an affiliate of the Investment
Manager. Pursuant to an administration agreement, FT Services performs certain
administrative functions for the Fund.

The Transfer Agent. The transfer agent, registrar and dividend disbursement
agent for the Fund is Mellon Investor Services LLC, 480 Washington Boulevard,
Jersey City, New Jersey 07310.

The Custodian. The custodian for the Fund is JPMorgan Chase Bank, MetroTech
Center, Brooklyn, New York 11245.

The Shareholder Servicing Agent. The shareholder servicing agent for the
Fund is UBS Securities LLC, formerly UBS Warburg LLC, 299 Park Avenue, 34th
Floor, New York, New York 10171, successor to the initial

underwriter of the Fund's shares. Pursuant to a shareholder servicing
agreement, UBS provides certain services to the Fund including statistical
information and analysis, ongoing efforts to publicize the Fund's shares and
making information available to investors.

Other Matters. The Fund's last audited financial statements and annual
report for the fiscal year ended August 31, 2006, are available free of charge.
To obtain a copy, please call 1-800/DIAL BEN(R) (1-800-342-5236) or forward a
written request to Franklin Templeton Investor Services, LLC, P.O. Box 33030,
St. Petersburg, Florida 33733-8030.

Principal Shareholders. As of December 29, 2006, the Fund had 47,338,848
shares outstanding and total net assets of $709,152,945. The Fund's shares are
listed on the NYSE (NYSE: TEI). From time to time, the number of shares held in
"street name" accounts of various securities dealers for the benefit of their
clients may exceed 5% of the total shares outstanding. To the knowledge of the
Fund's management, as of December 29, 2006, there were no other entities
holding beneficially or of record more than 5% of the Fund's outstanding shares.

In addition, to the knowledge of the Fund's management, as of December 29,
2006, no nominee or Trustee of the Fund owned 1% or more of the outstanding
shares of the Fund, and the Trustees and officers of the Fund owned, as a
group, less than 1% of the outstanding shares of the Fund.

Contacting the Board of Trustees. If a shareholder wishes to send a
communication to the Board, such correspondence should be in writing and
addressed to the Board of Trustees at the Fund's offices, 500 East Broward
Boulevard, Suite 2100, Fort Lauderdale, Florida 33394-3091, Attention:
Secretary. The correspondence will be given to the Board for review and
consideration.

..AUDIT COMMITTEE

Audit Committee and Independent Registered Public Accounting Firm. The
Fund's Audit Committee is responsible for the appointment, compensation and
retention of the Fund's independent registered public accounting firm
("auditors"), including evaluating their independence, recommending the
selection of the Fund's auditors to the full Board, and meeting with such
auditors to consider and review matters relating to the Fund's financial
reports and internal accounting. The Audit Committee is comprised of Messrs.
Crothers, Niemiec, Olson (Chairman) and Tseretopoulos, all of whom are
Independent Trustees and also are considered to be "independent" as that term
is defined by the listing standards applicable to the Fund.

Selection of Auditors. The Audit Committee and the Board have selected the
firm of PricewaterhouseCoopers LLP ("PwC") as auditors of the Fund for the
current fiscal year. Representatives of PwC are not expected to be present at
the Meeting, but will have the opportunity to make a statement if they wish,
and will be available should any matter arise requiring their presence.

Audit Fees. The aggregate fees paid to PwC for professional services
rendered by PwC for the audit of the Fund's annual financial statements or for
services that are normally provided by PwC in connection with statutory and
regulatory filings or engagements were $48,586 for the fiscal year ended
August 31, 2006 and $42,423 for the fiscal year ended August 31, 2005.

Audit-Related Fees. For the fiscal years ended August 31, 2006 and 2005,
there were no fees paid to PwC for assurance and related services by PwC that
are reasonably related to the performance of the audit or review of the Fund's
financial statements and not reported under "Audit Fees" above.

In addition, the Audit Committee pre-approves PwC's engagement for
audit-related services with the Investment Manager and certain entities
controlling, controlled by, or under common control with the Investment Manager
that provide ongoing services to the Fund, which engagements relate directly to
the operations and financial reporting of the Fund. There were no fees paid to
PwC for such services for the fiscal year ended August 31, 2006 or for the
fiscal year ended August 31, 2005.

Tax Fees. PwC did not render any tax compliance, tax advice or tax planning
services ("tax services") to the Fund for the fiscal year ended August 31, 2006
or for the fiscal year ended August 31, 2005.

In addition, the Audit Committee pre-approves PwC's engagement for tax
services to be provided to the Investment Manager and certain entities
controlling, controlled by, or under common control with the Investment Manager
that provide ongoing services to the Fund, which engagements relate directly to
the operations and financial reporting of the Fund. There were no fees paid to
PwC for such services for the fiscal year ended August 31, 2006 or for the
fiscal year ended August 31, 2005.

All Other Fees. The aggregate fees for products and services provided by
PwC to the Fund, other than the services reported above, were $386 for the
fiscal year ended August 31, 2006 and $0 for the fiscal year ended August 31,
2005. The services for which these fees were paid included review of materials
provided to the Fund Board in connection with the investment management
contract renewal process.

In addition, the Audit Committee pre-approves PwC's engagement for other
services to be provided to the Investment Manager and certain entities
controlling, controlled by, or under common control with the Investment Manager
that provide ongoing services to the Fund, which engagements relate directly to
the operations and financial reporting of the Fund. The aggregate fees paid to
PwC for such other services and not reported above were $175,475 for the Fund's
fiscal year ended August 31, 2006 and $0 for the fiscal year ended August 31,
2005. The services for which these fees were paid included review of materials
provided to the Fund Board in connection with the investment management
contract renewal process.

Aggregate Non-Audit Fees. The aggregate fees paid to PwC for non-audit
services to the Fund and to the Investment Manager or to any entity
controlling, controlled by, or under common control with the Investment Manager
that provide ongoing services to the Fund were $175,861 for the fiscal year
ended August 31, 2006 and $0 for the fiscal year ended August 31, 2005.

The Audit Committee has determined that the provision of the non-audit
services that were rendered to the Investment Manager and to any entities
controlling, controlled by, or under common control with the Investment Manager
that provide ongoing services to the Fund is compatible with maintaining PwC's
independence.

Audit Committee Pre-Approval Policies and Procedures. As of the date of
this proxy statement, the Audit Committee has not adopted written pre-approval
policies and procedures. As a result, all such services described above and
provided by PwC must be directly pre-approved by the Audit Committee.

Audit Committee Report. The Board has adopted and approved a formal written
charter for the Audit Committee, which sets forth the Audit Committee's
responsibilities. A copy of the charter was included in the Fund's proxy
statement for its 2005 Annual Meeting of Shareholders.

As required by the charter, the Audit Committee reviewed the Fund's audited
financial statements and met with management, as well as with PwC, the Fund's
auditors, to discuss the financial statements.

The Audit Committee received the written disclosures and the letter from PwC
required by Independence Standards Board Standard No. 1. The Audit Committee
also received the report of PwC regarding the results of their audit. In
connection with their review of the financial statements and the auditors'
report, the members of the Audit Committee discussed with a representative of
PwC, PwC's independence, as well as the following: the auditors'
responsibilities in accordance with generally accepted auditing standards; the
auditors' responsibilities for information prepared by management that
accompanies the Fund's audited financial statements and any procedures
performed and the results; the initial selection of, and whether there were any
changes in, significant accounting policies or their application; management's
judgments and accounting estimates; whether there were any significant audit
adjustments; whether there were any disagreements with management; whether
there was any consultation with other accountants; whether there were any major
issues discussed with management prior to the auditors' retention; whether the
auditors encountered any difficulties in dealing with management in performing
the audit; and the auditors' judgments about the quality of the Fund's
accounting principles.

Based on its review and discussions with management and the Fund's auditors,
the Audit Committee did not become aware of any material misstatements or
omissions in the financial statements. Accordingly, the Audit Committee
recommended to the Board that the audited financial statements be included in
the Fund's Annual Report to Shareholders for the fiscal year ended August 31,
2006 for filing with the U.S. Securities and Exchange Commission.

AUDIT COMMITTEE

Frank A. Olson, Chairman
Frank J. Crothers
David W. Niemiec
Constantine D. Tseretopoulos

..FURTHER INFORMATION ABOUT VOTING AND THE MEETING

Solicitation of Proxies. Your vote is being solicited by the Trustees. The
cost of soliciting proxies, including the fees of a proxy soliciting agent, is
borne by the Fund. The Fund reimburses brokerage firms and others for their
expenses in forwarding proxy material to the beneficial owners and soliciting
them to execute proxies. In addition, the Fund may retain a professional proxy
solicitation firm to assist with any necessary solicitation of proxies. The
Fund expects that the solicitation would be primarily by mail, but may also
include telephone, facsimile, electronic or other means of communication. If
the Fund does not receive your proxy by a certain time you may receive a
telephone call from a proxy soliciting agent asking you to vote. If
professional proxy solicitors are retained, it is expected that soliciting fees
would be approximately $5,000, plus expenses. The Fund does not reimburse
Trustees and officers of the Fund, or regular employees and agents of the
Investment Manager involved in the solicitation of proxies. The Fund intends to
pay all costs associated with the solicitation and the Meeting.

Voting by Broker-Dealers. The Fund expects that, before the Meeting,
broker-dealer firms holding shares of the Fund in "street name" for their
customers will request voting instructions from their customers and beneficial
owners. If these instructions are not received by the date specified in the
broker-dealer firms' proxy solicitation materials, the Fund understands that
NYSE Rules permit the broker-dealers to vote on the Proposal on behalf of their
customers and beneficial owners. Certain broker-dealers may exercise discretion
over shares held in their name for which no instructions are received by voting
these shares in the same proportion as they vote shares for which they received
instructions.

Quorum. A majority of the Fund's shares entitled to vote-present in person
or represented by proxy-constitutes a quorum at the Meeting. The shares over
which broker-dealers have discretionary voting power, the shares that represent
"broker non-votes" (i.e., shares held by brokers or nominees as to which
(i) instructions have not been received from the beneficial owners or persons
entitled to vote and (ii) the broker or nominee does not have discretionary
voting power on a particular matter), and the shares whose proxies reflect an
abstention on any item will all be counted as shares present and entitled to
vote for purposes of determining whether the required quorum of shares exists.

Method of Tabulation. The Proposal to elect Trustees requires the
affirmative vote of not less than a plurality of the votes cast of the holders
of shares entitled to vote present in person or represented by proxy at a
meeting at which a quorum is present. Abstentions and broker non-votes will be
treated as votes present at the Meeting, but will not be treated as votes cast.
Abstentions and broker non-votes, therefore, will have no effect on the
Proposal.

Simultaneous Meetings. The Meeting is to be held at the same time as the
annual meetings of shareholders of Templeton Emerging Markets Fund and
Templeton Global Income Fund. If any shareholder at the Meeting objects to the
holding of simultaneous meetings and moves for an adjournment of the Meeting to
a time promptly after the simultaneous meetings, the persons designated as
proxies will vote in favor of such adjournment.

Adjournment. The Chairman of the Board or other authorized officer of the
Fund for the Meeting, or the holders of a majority of the shares present (in
person or by proxy) and entitled to vote at the Meeting, may adjourn the
Meeting from time to time. Such authority to adjourn the Meeting may be used in
the event that a quorum is not present at the Meeting or, in the event that a
quorum is present but sufficient votes have not been received to approve the
Proposal, or for any other reason consistent with Delaware law and the Fund's
By-Laws, including to allow for the further solicitation of proxies. Unless
otherwise instructed by a shareholder granting a proxy, the persons designated
as proxies may use their discretionary authority to vote as instructed by
management of the Fund on questions of adjournment and on any other proposals
raised at the Meeting to the extent permitted by the SEC's proxy rules,
including proposals for which management of the Fund did not have timely
notice, as set forth in the SEC's proxy rules and the Fund's proxy statement
for the 2006 annual meeting.

Shareholder Proposals. The Fund anticipates that its 2008 Annual Meeting of
Shareholders will be held on or about February 22, 2008. A shareholder who
wishes to submit a proposal for consideration for inclusion in the Fund's proxy
statement for the 2008 Annual Meeting of Shareholders must send such written
proposal to the Fund's offices at 500 East Broward Boulevard, Suite 2100, Fort
Lauderdale, Florida 33394-3091, Attention: Secretary, so that it is received no
later than September 21, 2007 in order to be included in the Fund's proxy
statement and proxy card relating to that meeting and presented at the meeting.

A shareholder of the Fund who has not submitted a written proposal for
inclusion in the Fund's proxy statement by September 21, 2007, as described
above, may nonetheless present a proposal at the Fund's 2008 Annual Meeting of
Shareholders if such shareholder notifies the Fund in writing at the Fund's
offices, of such proposal not earlier than September 25, 2007 and not later
than October 25, 2007. If a shareholder fails to give notice within these
dates, then the matter shall not be eligible for consideration at the
shareholders' meeting. If, notwithstanding the effect of the foregoing notice
provisions, a shareholder proposal is acted upon at the 2008 Annual Meeting of
Shareholders, the persons designated as proxy holders for proxies solicited by
the Board for the 2008 Annual Meeting of Shareholders may exercise
discretionary voting power with respect to any shareholder proposal not
received by the Fund at the Fund's offices by December 5, 2007. A shareholder

proposal may be presented at the 2008 Annual Meeting of Shareholders only if
such proposal concerns a matter that may be properly brought before the meeting
under applicable federal proxy rules and state law.

In addition to the requirements set forth above, a shareholder must comply
with the following:

1. A shareholder intending to present a proposal must (i) be entitled to
vote at the meeting; (ii) comply with the notice procedures set forth
in this proxy statement and in the Fund's By-Laws; and (iii) have
been a shareholder of record at the time the shareholder's notice was
received by the Secretary of the Fund.

2. Each notice regarding nominations for the election of Trustees shall
set forth in writing (i) the name, age, business address and, if
known, residence address of each nominee proposed in such notice;
(ii) the principal occupation or employment of each such nominee;
(iii) the number of outstanding shares of the Fund which are
beneficially owned by each such nominee; and (iv) all such other
information regarding each such nominee as would have been required
to be included in a proxy statement filed pursuant to the proxy rules
of the SEC had each such nominee been nominated by the Trustees of
the Fund. In addition, the shareholder making such nomination shall
promptly provide any other information reasonably requested by the
Fund.

3. Each notice regarding business proposals shall set forth in writing
as to each matter: (i) a brief description of the business desired to
be brought before the meeting and the reasons for conducting such
business at the meeting; (ii) the name and address, as they appear on
the Fund's books, of the shareholder proposing such business;
(iii) the number of outstanding shares of the Fund which are
beneficially owned by the shareholder; (iv) any material interest of
the shareholder in such business; and (v) all such other information
regarding each such matter that would have been required to be
included in a proxy statement filed pursuant to the proxy rules of
the SEC had each such matter been proposed by the Trustees of the
Fund.

Submission of a proposal by a shareholder does not guarantee that the
proposal will be included in the Fund's proxy statement or presented at the
meeting.

By Order of the Board of Trustees,

Robert C. Rosselot
Secretary

January 19, 2007

TLTEI PROXY 01/07

The Board of Truste es unanimously recommends a vote FOR the Proposal.

Please
mark here
if address |_|
change or
comment
noted on proxy

Proposal - Election of Trustees.

FOR all nominees WITHHOLD AUTHORITY
listed (except as to vote for
marked to the right) all nominees listed

|_| |_|

Nominees: 01 Charles B. Johnson, 02 Gregory E. Johnson,
03 Frank J. Crothers, 04 Frank A. Olson and
05 Robert E. Wade

To withhold authority to vote for any individual nominee, write that nominee's
name on the line below.

________________________________________________________________________________

YES NO
I PLAN TO ATTEND THE MEETING. |_| |_|

Signature(s):__________________________________________Dated______________, 2007
Please sign exactly as your name appears on this Proxy. If signing for estates,
trusts or corporations, title or capacity should be stated. If shares are held
jointly, each holder should sign.
--------------------------------------------------------------------------------
/\ FOLD AND DETACH HERE /\

Your Internet or telephone vote authorizes the named proxies to vote your shares
in the same manner as if you marked, signed and returned your proxy card.

--------------------------------------------------------------------------------
Internet
http://www.proxyvoting.com/tei

Use the Internet to vote your proxy. Have your proxy card in hand when you
access the web site, or vote your proxy through ISD at:
http://www.melloninvestor.com/isd.
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
Telephone
1-866-540-5760

Use any touch-tone telephone to vote your proxy. Have your proxy card in hand
when you call.
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
Mail

Mark, sign and date your proxy card and return it in the enclosed postage-paid
envelope.
--------------------------------------------------------------------------------

If you vote your proxy by Internet or by telephone,
You do NOT need to mail back your proxy card.

TEMPLETON EMERGING MARKETS INCOME FUND
ANNUAL MEETING OF SHAREHOLDERS - FEBRUARY 23, 2007

The undersigned hereby revokes all previous proxies for his/her shares and
appoints SHEILA M. BARRY, ROBERT C. ROSSELOT and LORI A. WEBER, and each of
them, proxies of the undersigned with full power of substitution to vote all
shares of Templeton Emerging Markets Income Fund (the "Fund") that the
undersigned is entitled to vote at the Fund's Annual Meeting of Shareholders
(the "Meeting") to be held at 500 East Broward Boule vard, 21st Floor, Fort
Lauderdale, Florida 33394 at 12 Noon Eastern time, on February 23, 2007,
including any postponements or adjournments thereof, upon the matter set forth
below and instructs them to vote upon any other matters that may properly be
acted upon at the Meeting.

This Proxy is solicited on behalf of the Board of Trustees. It will be voted as
specified. If no specification is made, this Proxy shall be voted FOR the
Proposal (including all nominees for trustee). If any other matters properly
come before the Meeting to be voted on, the proxy holders will vote, act and
consent on those matters in accordance with the views of management.

(Continued and to be signed on the other side)

--------------------------------------------------------------------------------
/\ FOLD AND DETACH HERE /\

You can now access your Templeton Emerging Markets Income Fund account online.

Access your Fund account online via Investor ServiceDirect(R) (ISD).

Mellon Investor Services LLC, Transfer Agent for the Fund, now makes it easy and
convenient to get current information on your shareholder account.

o View account status o Make address changes
o View certificate history o Obtain a duplicate 1099 tax form
o View book-entry information o Establish/change your PIN
o View payment history for dividends

Visit us on the web at htpp://www.melloninvestor.com

For Technical Assistance Call 1-877-978-7778 between 9am-7pm
Monday-Friday Eastern Time

Investor ServiceDirect(R) is a registered trademark of
Mellon Investor Services LLC