S&P Ratings--Principal Life Income Funding Trusts.

Business Editors

NEW YORK--(BUSINESS WIRE)--June 7, 2004

Issues:
                                                Rating  Rating Date

US$4 bil Principal Life CoreNotes/MTN Prog
   03/05/2004: sr secd                          AA      29-Mar-2004
   (Gtd: Principal Financial Group Inc.
   gic: Principal Life Insurance Co.)
US$300 mil 3.2%  Fixed Rates Trust 1 nts due
   04/01/2009                                   AA      29-Mar-2004
   (Gtd: Principal Financial Group Inc.
   gic: Principal Life Insurance Co.)
US$3.043 mil 5.15%  CoreNotes ser 2004-3 due
   04/15/2019                                   AA      08-Apr-2004
US$0.585 mil 4.5%  CoreNotes ser 2004-2 due
   04/15/2016                                   AA      08-Apr-2004
US$1.517 mil 3.45%  CoreNotes ser 2004-1 due
   04/15/2010                                   AA      08-Apr-2004
US$75 mil var rate CPI + 1.88 Fixed Rate Trust
   2 nts due 04/01/2016                         AA      14-Apr-2004
   (Gtd: Principal Financial Group
   gic: Principal Life Insurance Co.)
US$1.432 mil 4.05%  CoreNotes ser 2004-4 due
   04/15/2011                                   AA      14-Apr-2004
US$8.317 mil 5.5%  CoreNotes ser 2004-5 due
   04/15/2019                                   AA      14-Apr-2004
US$150 mil fltg rate 3 mo. LIBOR + 1 bp Fixed
   Rate Trust 3 nts due 10/14/2005              AA      19-Apr-2004
   (Gtd: Principal Financial Group
   gic: Principal Life Insurance Co.)
US$350 mil 4.05%  Fixed Rate Trust 4 nts due
   04/15/2011                                   AA      19-Apr-2004
   (Gtd: Principal Financial Group
   gic: Principal Life Insurance Co.)
US$4.738 mil 5.25%  CoreNotes ser 2004-7 due
   05/15/2012                                   AA      24-May-2004
US$3.129 mil 4.5%  CoreNotes ser 2004-6 due
   05/17/2010                                   AA      24-May-2004
US$5.537 mil 6%  CoreNotes ser 2004-8 due
   05/15/2019                                   AA      24-May-2004
US$1.163 mil 4.55%  CoreNotes ser 2004-9 due
   06/15/2010                                   AA      01-Jun-2004
US$3.814 mil 5.3%  CoreNotes ser 2004-10 due
   06/15/2012                                   AA      01-Jun-2004
US$9.696 mil 6%  CoreNotes ser 2004-11 due
   06/17/2019                                   AA      01-Jun-2004
US$200 mil fltg rate 3 mo. Libor - 1 bp Fixed
   Rate Trust 5 nts due 12/15/2005              AA      02-Jun-2004
   (Gtd: Principal Financial Group
   gic: Principal Life Insurance Co.)
US$0.8 mil 4.5%  CoreNotes ser 2004-12 due
   06/15/2010                                   AA      07-Jun-2004
US$9.545 mil 6%  CoreNotes ser 2004-14 due
   06/17/2019                                   AA      07-Jun-2004
US$1.854 mil 5.25%  CoreNotes ser 2004-13 due
   06/15/2012                                   AA      07-Jun-2004

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