Fitch Ratings Affirms Northwestern Mutual.

Business Editors

CHICAGO--(BUSINESS WIRE)--May 22, 2002

Fitch Ratings has affirmed the 'AAA' insurer financial strength rating of Northwestern Mutual Life Insurance Co. (NM) and Northwestern Long Term Care Insurance Co. (NLTC). In addition, Fitch has affirmed the 'AAA' senior debt rating on Frank Russell Co.'s 144(a) notes, which are unconditionally guaranteed by NM. The Rating Outlook is Stable

NLTC is a wholly owned stock subsidiary of NM, and its financial strength rating reflects the strength of the entire NM organization, as well as the explicit capital support agreement between NM and NLTC.

NM's performance continues to compare favorably to peer companies and remains consistent with Fitch's 'AAA' rating. Solid product fundamentals, such as persistency and mortality, drive the company's favorable operating results. In addition, NM's career sales force is a recognized competitive advantage. Highlights include a record 1,700 new full-time representatives appointed during 2001, bringing the total to 6,247, and four-year agent retention and productivity figures better than both the industry and peers.

Challenges facing NM include the difficult operating environment in the disability income insurance business, as well as uncertainties inherent in start-up businesses such as long term care. Sales volumes for long-term care business have been less than originally anticipated, however, given the current fundamentals of the LTC market, slow growth is considered acceptable.

NM's operating return on average adjusted surplus reached 4.2% in 2001, which was below the company's five year average of 5.1%. Policyholder dividends grew to a record $3.7 billion, reflecting strong operating results and an industry leading dividend rate.

The company's capital position remained strong from both a absolute dollar value and risk-adjusted perspective. Adjusted surplus, which Fitch measures to include both the asset valuation and interest maintenance reserves, reached $9.3 billion at year-end 2001, while the NAIC risk-based capital ratio (RBC) increased to 494% of the company action level. The NAIC RBC ratio improvement reflects not only increased surplus, but also a change in the RBC formula that lessened the risk charge for investing in common stocks and below investment grade bonds.

Entity/Issue/Type                 Action       Rating/Outlook

Northwestern Mutual Life Insurance Company

--Insurer financial strength      Affirmed     'AAA';

--Rating Outlook                  Unchanged    Stable.

Northwestern Long Term Care Company

--Insurer financial strength      Affirmed     'AAA';

--Rating Outlook                  Unchanged    Stable.

Frank Russell Company

--Senior debt                     Affirmed      'AAA';

--Rating Outlook                  Unchanged    Stable.