The Principal Financial Group Launches National Benefit Strategy Network for Plan Sponsors and Financial Professionals

Nov. 9, 2005 (Des Moines, Iowa) — With the nation's workforce on the verge of dramatic change, employers are finding themselves competing for talent in a new frontier. Now they have easy access to tried and true strategies that will give them an edge. The Principal Financial Group^®, the nation's 401(k) leader and total retirement solution innovator, has launched a first-of-its-kind national network -- Principal Benefits Exchange^SM. Using live web casts, printed materials and local seminars, Principal Benefit Exchange gives employers and their financial professionals an invaluable edge with in-depth communication about industry trends and issues, and exclusive, nationwide learning and networking opportunities.

Through Principal Benefits Exchange, employers share best practices with their peers and receive other valuable information and education - at no cost and with minimal time investment. "The United States workforce is changing dramatically as it grows smaller, older and more ethnically diverse. Employers and their financial professionals want to stay informed about meeting the changing needs of that workforce," said Renee Schaaf, vice president-Retirement and Investor Services at The Principal^®. "By working collaboratively through Principal Benefits Exchange, employers and financial professionals can better understand industry issues, and share effective ideas. Together, we can make a real and lasting impact on worker savings and investment behavior."

Principal Benefits Exchange includes:

A series of targeted, interactive web casts that provide live discussion and exchange of ideas and information.

The Principal Plan Manager Exchange^SM offers education and training on a variety of plan administrative tasks, such as compliance testing and audits.
The Principal Executive Exchange^SM covers benefit strategies organizations can implement to recruit and retain talent.

A quarterly newsletter, called BenefitEdge^®, featuring important plan sponsor information ranging from legislative news to plan management tips.
Local seminars on a variety of topics including retirement saving, investments and fiduciary responsibilities.

"In addition to the value plan sponsors gain from this program, Principal Benefits Exchange helps financial advisors grow their business," said Schaaf. "The program increases their visibility and helps promote the value they provide."

Financial professionals not only participate in Principal Benefits Exchange, they can also invite existing and prospective clients to participate, as well. In addition, some invitations and support materials are customized with the financial professional's name in order to further support the important role that the financial professional plays in the plan administration relationship.

As a global leader in offering comprehensive employee benefits and a wide range of financial products with active research and government relations offices, The Principal is uniquely suited to be a leading source for information about retirement programs as well as the broader benefits industry:

Each year, The Principal publishes a Best Practices Guide based on The Principal 10 Best Companies for Employee Financial Security. This guide profiles best practices of organizations whose employee benefits programs have been judged and recognized as innovative and successful by an independent panel of experts.
Each quarter, The Principal publishes the results of The Principal Financial Well-Being Index^SM, a study that identifies trends in consumer financial well-being, retirement planning, employee benefits, and workplace trends.
On an ongoing basis, The Principal maintains more local sales and service offices than any other retirement service provider, ensuring a more intimate understanding of issues.

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 $188.4 billion in assets under management² and serves some 15.3 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.

^{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 September 30, 2005.}