THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Legg Mason, Inc. (LM)

6/22/2006 Proxy Information

Certain directors and executive officers have immediate family members who are employees of Legg Mason or one of its subsidiaries. The compensation of each such family member, including participation in employee benefit plans generally made available to similarly situated employees, was established in accordance with Legg MasonÕs employment and compensation practices applicable to employees with similar qualifications and responsibilities and holding similar positions. None of the directors or executive officers has a material interest in the employment relationships nor do any of them share a home with these employees. None of these employees is an executive officer of Legg Mason. An adult child of Raymond A. Mason, Legg MasonÕs Chairman of the Board and Chief Executive Officer, is employed as Vice President and Director, Corporate Marketing and Communications in Legg MasonÕs corporate communications department and received $360,000 in salary and bonus for fiscal 2006, plus 122 shares of restricted Common Stock.

During fiscal 2006, Legg Mason filed, and paid related filing fees of $170,000, and related attorney fees, on behalf of Mr. Mason, notification and report forms pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. The filings were triggered by Mr. MasonÕs ownership of Common Stock and Legg MasonÕs delivery of Common Stock to Mr. Mason in connection with an exercise of stock options and a grant of restricted stock.

W. Allen Reed, a director of Legg Mason since April 2006, was, through December 2005, the Chief Executive Officer and President of General Motors Asset Management Corporation (ŌGMAMCĶ), which is an investment manager affiliated with the General Motors Corporation. During the fiscal year ended March 31, 2006, Legg Mason subsidiaries provided asset management services to GMAMC and received customary compensation for those services in the total amount of approximately $10.1 million.

During the last fiscal year, directors, executive officers and employees of Legg Mason and members of their immediate families may have purchased or sold securities in brokerage transactions with Legg MasonÕs subsidiaries. These subsidiaries may also have, from time to time and in the ordinary course of their businesses, entered into transactions on a principal basis involving the purchase or sale of securities and other financial products in which directors, executive officers, employees and members of their immediate families had an interest. For certain transactions, Legg MasonÕs subsidiaries may have offered discounts on their services. All of these transactions were done by Legg MasonÕs brokerage and capital markets businesses, which were sold on December 1, 2005. In addition, from time to time, directors, executive officers and employees of Legg Mason, members of their immediate families and companies or affiliates of companies that employ Legg MasonÕs independent directors may have investments in various investment vehicles or accounts sponsored or managed by Legg MasonÕs subsidiaries.

In the ordinary course of its business, Legg Mason has extended credit to certain of its directors and executive officers in connection with their purchases of securities in margin accounts. These extensions of credit have been made on terms comparable to loans to unaffiliated customers and did not involve more than the normal risk of collectability or present other unfavorable features. No such extension has resulted in a loss to Legg Mason. Subsequent to the enactment of the Sarbanes-Oxley Act of 2002, Legg Mason has made no new margin loans to directors or executive officers who are not employees of a brokerage subsidiary of Legg Mason and has not permitted increases in any margin loans to directors or executive officers who are not employees of a brokerage subsidiary of Legg Mason. All of this lending was done by Legg MasonÕs brokerage business, which was sold on December 1, 2005.

6/17/2005 Proxy Information

Mr. AdamsÕ son is an employee of LMWW; however, he is not an executive officer of Legg Mason. Mr. Adams is also Chairman Emeritus, and was President, Chairman and Chief Executive Officer, of RTKL Associates, Inc., which from time to time, most recently during the fiscal year ended 2004, has performed services for Legg Mason and received customary compensation for those services.

Mr. Schmoke, until January 2003, was a partner at the law firm of Wilmer Cutler Pickering Hale and Dorr LLP, which has been engaged to perform legal services for Legg Mason from time to time and has received customary fees for those engagements; however, Mr. Schmoke had no involvement in any of the engagements.

Ms. Richardson, until June 2003, was a partner at the accounting firm of Ernst & Young LLP, which performs a limited number of consulting engagements for Legg Mason and is the auditor for seven mutual funds sponsored by Legg Mason.

On December 8, 1998, Legg Mason loaned to Raymond A. Mason, Legg MasonÕs Chairman of the Board, President and Chief Executive Officer, $3,378,750 to finance the purchase of 120,000 shares of Common Stock from Legg Mason. All outstanding principal under this loan was repaid on March 16, 2005. The loan was full recourse, was secured by a pledge of the shares and accrued interest at a rate of 4.47% per annum, compounded semi-annually. The largest amount of indebtedness outstanding under this loan at any time during fiscal 2005 was $844,688, plus accrued interest.

Certain directors and executive officers have immediate family members who are employees of Legg Mason or one of its subsidiaries. The compensation of each such family member, including participation in employee benefit plans generally made available to similarly situated employees, was established in accordance with Legg MasonÕs employment and compensation practices applicable to employees with similar qualifications and responsibilities and holding similar positions. None of the directors or executive officers has a material interest in the employment relationships nor do any of them share a home with these employees. None of these employees is an executive officer of Legg Mason.

A son-in-law of Legg Mason director and former executive officer James W. Brinkley is employed as a Vice President and financial advisor in LMWWÕs private client business and received $345,000 in salary and bonus for fiscal 2005, substantially all of which was commission-based. A daughter-in-law of James W. Brinkley is employed as Vice President, Co-Director of Private Client Group Training and Development in LMWWÕs private client business and received $155,000 in salary and bonus for fiscal 2005, plus options to acquire 401 shares of Common Stock. An adult child of Raymond A. Mason, Legg MasonÕs Chairman of the Board, President and Chief Executive Officer, is employed as Vice President and Director, Corporate Marketing and Communications in Legg MasonÕs corporate communications department and received $329,000 in salary and bonus for fiscal 2005, plus 159 shares of restricted Common Stock. Another adult child of Raymond A. Mason is employed as a Vice President and Senior Trader in the equity capital markets business of LMWW and received $114,000 in salary and bonus for fiscal 2005. A brother-in-law of Legg Mason executive officer Edward A. Taber III is employed as an Institutional Sales Representative in LMWWÕs private client business and received $331,000 in salary and bonus for fiscal 2005, all of which was commission-based, plus 177 shares of restricted Common Stock. A sister of Legg Mason executive officer Joseph A. Sullivan is employed as an Institutional Sales Liaison in LMWWÕs capital markets business and received $63,300 in salary and bonus for fiscal 2005.

Directors, executive officers and employees of Legg Mason and members of their immediate families may purchase or sell securities in brokerage transactions with Legg MasonÕs subsidiaries. These subsidiaries may also, from time to time and in the ordinary course of their businesses, enter into transactions on a principal basis involving the purchase or sale of securities and other financial products in which directors, executive officers, employees and members of their immediate families have an interest. For certain transactions, Legg MasonÕs subsidiaries may offer discounts on their services. In addition, from time to time directors, executive officers and employees of Legg Mason, members of their immediate families, and companies or affiliates of companies that employ Legg MasonÕs independent directors, may have investments in various investment vehicles or accounts sponsored or managed by Legg MasonÕs subsidiaries.

In the ordinary course of its business, Legg Mason has extended credit to certain of its directors and executive officers in connection with their purchases of securities in margin accounts. These extensions of credit have been made on terms comparable to loans to unaffiliated customers and did not involve more than the normal risk of collectability or present other unfavorable features. No such extension has resulted in a loss to Legg Mason. Subsequent to the enactment of the Sarbanes-Oxley Act of 2002, Legg Mason has made no new margin loans to directors or executive officers who are not employees of LMWW and has not permitted increases in any margin loans to directors or executive officers who are not employees of LMWW.

6/21/2004 Proxy Information

Mr. AdamsÕ son is an employee of Legg Mason Wood Walker, Incorporated (Legg Mason's principal brokerage subsidiary); however, he is not an executive officer of Legg Mason. Mr. Adams is also Chairman Emeritus, and was President, Chairman and Chief Executive Officer, of RTKL Associates, Inc., which from time to time has performed services for Legg Mason and received customary compensation for those services.

Mr. OÕMalley serves as a director of Legg MasonÕs subsidiary, Legg Mason Trust, fsb, and his son is employed as a financial advisor at Legg Mason Wood Walker, Incorporated (Legg Mason's principal brokerage subsidiary); however, his son is not an executive officer of Legg Mason. His sonÕs compensation varies from year to year based on his production and is determined by the same formula utilized to determine the compensation of other financial advisors.

On December 8, 1998, Legg Mason loaned to Raymond A. Mason, Legg MasonÕs Chairman of the Board, President and Chief Executive Officer, $3,378,750 to finance the purchase of 120,000 shares of Common Stock from Legg Mason. The loan is full recourse, is secured by a pledge of the shares, and accrues interest at a rate of 4.47% per annum, compounded semi-annually. The principal amount is due in full at maturity on June 8, 2006 and interest payments are due on June 8 of each year. As of May 31, 2004, the amount of indebtedness outstanding under this loan was $844,688, plus accrued interest. The largest amount of indebtedness outstanding under this loan at any time during fiscal 2004 was $1,689,375, plus accrued interest.

In the ordinary course of its business, Legg Mason has extended credit to certain of its directors and executive officers in connection with their purchases of securities in margin accounts. These extensions of credit have been made on terms comparable to loans to unaffiliated customers and did not involve more than the normal risk of collectability or present other unfavorable features. No such extension has resulted in a loss to Legg Mason. Subsequent to the enactment of the Sarbanes-Oxley Act of 2002, Legg Mason has made no new margin loans to directors or executive officers who are not employees of LMWW and has not permitted increases in any margin loans to directors or executive officers who are not employees of LMWW.

6/18/2003 Proxy Information

On December 8, 1998, Legg Mason loaned to Raymond A. Mason, Legg MasonÕs Chairman of the Board, President and Chief Executive Officer, $3,378,750 to finance the purchase of 120,000 shares of Common Stock from Legg Mason. The loan is full recourse, is secured by a pledge of the shares, and accrues interest at a rate of 4.47% per annum, compounded semi-annually. The principal amount is due in full at maturity on June 8, 2006 and interest payments are due on June 8 of each year. As of May 31, 2003, the amount of indebtedness outstanding under this loan was $1,689,375, plus accrued interest. The largest amount of indebtedness outstanding under this loan at any time during fiscal 2003 was $2,534,062, plus accrued interest.

During fiscal 2003, Legg Mason paid approximately $388,000 to Wilmer, Cutler & Pickering, a law firm, for legal services and related expenses. Kurt L. Schmoke, a partner in that law firm until January 2003, is a director of Legg Mason.

In the ordinary course of its business, Legg Mason has extended credit to certain of its directors and executive officers in connection with their purchases of securities in margin accounts. Extensions of credit have been made on terms comparable to loans to unaffiliated customers and did not involve more than the normal risk of collectability or present other unfavorable features. No such extension has resulted in a loss to Legg Mason. Subsequent to the enactment of the Sarbanes-Oxley Act of 2002, Legg Mason has made no new margin loans to directors or executive officers who are not employees of LMWW and has not permitted increases in any margin loans to directors or executive officers who are not employees of LMWW.