The Principal Financial Group Announces Winners of 401-K Challenge Cup and Sweepstakes

Sept. 6, 2005 (Des Moines, Iowa) — On National 401(k) Day, the nation's 401(k) leader honors the first minor league ball team to reach 401 "K"s-or strikeouts-as part of a nationwide competition. The Principal Financial Group^®, announces the San Jose Giants are the winners of its inaugural 401-K Challenge Cup, a friendly rivalry between minor league teams participating in The Principal Family Fun Fest- the world's largest traveling celebration of baseball that is touring 56 cities across the United States.

Giants fan, Marida (Mike) Nhim of Los Angeles, is the winner of a $5,000 National Grand Prize. His name was drawn from among those who correctly guessed that the Giants would win the 401-K Challenge. The lucky fan will receive his check on September 10 during the Giants' playoffs in San Jose. The Principal^® will also present the official 401-K Challenge Cup to the team that day.

"The idea behind the 401-K Challenge Cup and Sweepstakes is to boost awareness of the importance of saving for retirement with a fun competition between teams and their fans. Its just one more way to remind retirement savers to keep their eye on the ball which is long term financial security," said Daniel J. Houston, senior vice president, Retirement & Investor Services, The Principal. "As the nation's 401(k) leader, we congratulate the Giants and their dedicated fan Marida Nhim being our first winners."

San Jose pitcher Kevin Correia achieved the 401-K milestone on July 11 when he struck out Inland Empire 66ers first baseman, Bryan Lahair, who was swinging for the first out in the second inning.

"We were excited to give our fans the opportunity to win this great prize," said Mark Wilson, General Manager, San Jose Giants. "We are very proud that our pitching staff got us to 401 strikeouts faster than any of the other participating teams. We want to thank The Principal and Entertainment Sports International for bringing this competition to our team and fans." Entertainment & Sports International, Inc. (ESI) produces The Principal Family Fun Fest and The Principal is the title sponsor of the free, family oriented event.

The Principal is also a sponsor of National 401(k) Day, an annual event established by the Profit Sharing/401(k) Council of America (PSCA) to educate employees about the importance of participating in their 401(k) plans and of long-term savings for retirement.

"We're delighted that The Principal chose National 401(k) day to announce the winner of the 401-K Challenge Cup and Sweepstakes," said David Wray, president, PSCA. "Like 401(k) Day, the Challenge is a great example of a fun way to keep the critical issue of retirement savings on the forefront."

A local first prize winner will also be chosen in a random drawing from each participating minor league baseball market included on the tour to receive a complete Topps Baseball Card set and other prizes.

About The Principal Financial Group
The Principal Financial Group^® (The Principal^®)¹ is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance and banking through its diverse family of financial services companies. A member of the Fortune 500, the Principal Financial Group has $187.8 billion in assets under management² and serves some 15.2 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.

About ESI
Entertainment & Sports International (ESI) is a partnership of two experienced sports and entertainment executives who have worked with some of the best-known entertainment brands of the past two decades. From offices in New York and West Palm Beach, Fla., the company creates and produces distinctive and proprietary sports and entertainment properties and events.

^{1) "The Principal Financial Group" and "The Principal" are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.}
^{2) As of June 30, 2005.}