ADVISORY/Nation's 401k Leader, The Principal Financial Group Stresses the Importance of Pensions in Future International Trade Negotiations.

News/Assignment Editors

ADVISORY...for Wednesday (June 5)

--(BUSINESS WIRE)

Global Business Strategist Available to Comment

      WHO: Norman Sorensen, president - Principal International Inc., a
        member of the Principal Financial Group.

      WHAT: On Wednesday, June 5, Norman Sorensen will emphasize the
        importance of addressing private pension fund considerations
        in upcoming trade negotiations at the Institute for
        International Economics Conference on "Further Liberalization
        of Global Financial Services Markets?" to be held in
        Washington D.C.

      WHERE/WHEN:
        Telephone interviews can be arranged with Norman
        Sorensen following the receipt of this advisory.
        Comments can also be taken from the statement below.

      CONTACT:
        To arrange an interview with Norman Sorensen please
        contact Jennifer Fletcher (515/235-9188, or
        [e-mail])

      STATEMENT:
        "Retirement funding for aging populations is a global
        problem and should be addressed globally," said Norman
        Sorensen, president, Principal International Inc. "Given
        the importance of this issue to individuals and
        governments, it is vital that retirement services
        provisions be an integral part of trade negotiations
        going forward."

          The United States Senate recently passed the Trade
        Promotion Authority (TPA) Legislation (H.R.3005) that
        will enhance Presidential powers to negotiate trade
        treaties. TPA will facilitate wider market access for
        American products and services - and will help create
        additional jobs in the U.S. to support this global
        market expansion. Once finally approved by Congress, TPA
        will enhance the ability of trade negotiators to ensure
        the inclusion of such issues as pensions and asset
        management in global trade agreements.

          The Principal Financial Group also urges U.S. trade
        negotiators to consider the manner in which U.S.
        financial services providers can be more active
        participants in global pension and asset management
        markets.

          "While trade negotiators do not set policy for
        individual countries, they should ensure a level playing
        field for domestic and foreign companies in the private
        pension industry throughout the OECD," Sorensen said.

          "American expertise in this field not only offers
        quality pension products, but also strengthens local
        capital markets by increasing transparency, prudential
        regulations and trade commitments. US pension service
        providers should be free to offer products and
        investment options they find necessary to meet benefit
        needs, consistent with the host country's national
        requirements."

      About the Principal Financial Group:

          The Principal Financial Group(R) (The Principal (R))(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 mortgage banking
        through its diverse family of financial services
        companies. More employers choose the Principal Financial
        Group for their 401(k) plans than any other bank, mutual
        fund, or insurance company in the United States(2). A
        member of the Fortune 500, the Principal Financial Group
        has $120.2 billion in assets under management(3) and
        serves some 13 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 trademarks of Principal Financial Services, Inc., a
        member of the Principal Financial Group.

      (2) CFO Magazine, April/May 2001, based on total plans served in
        2000 by insurance companies, banks and investment firms.

      (3) As of March 31, 2002.