The Principal Financial Group and the CIMB Group Grow Partnership to Create the Largest Asset Management Company in Malaysia.

DES MOINES, Iowa -- The Principal Financial Group([R]) and the CIMB Group have agreed to grow their partnership to create the largest asset management company in Malaysia. The companies' existing asset management joint venture, CIMB-Principal, is acquiring the similar businesses of Southern Bank Bhd ("SBB")CoSBB Mutual Berhad and SBB Asset Management Sdn Bhd - from the CIMB Group, which acquired SBB in its entirety earlier this year. This acquisition will create Malaysia's leading asset manager with combined assets under management of over $3.8 billion. The Principal([R])will invest approximately $52 million of the $130 million purchase price to retain a 40% stake in the considerably larger entity.

"This is a unique opportunity to significantly enhance our presence in a strategically important market," said Larry Zimpleman, president and chief operating officer of the Principal Financial Group. "CIMB-Principal has been very successful in the Malaysian market, more than doubling assets under management over the last three years. Our partnership with the CIMB Group, a fast-growing and highly recognized financial group, gives us a strong foothold in Malaysia and regionally, and positions us well to participate in the fast-growing mutual fund and asset accumulation markets.

"The combination of CIMB-Principal with SBB Mutual and SBB Asset Management creates an asset management powerhouse, with a 4,500 person agency force, a strong retail banking distribution network, complementary investment strengths in fixed income and equities, and a strong combined book of institutional asset management mandates," said Rex Auyeung, senior vice president - Asia operations of Principal International.

Commenting further on the importance of the Malaysian market, Norman Sorensen, president of Principal International, added: "Malaysia is home to the largest Islamic (Shariah compliant) financial market and CIMB-Principal is widely considered as one of the most innovative manufacturers within the Islamic capital markets. In addition to building on CIMB-Principal's broad assortment of mutual funds, the acquisition of SBB Mutual and SBB Asset Management will strengthen the company's leadership position in Shariah-compliant investments. This provides a strong platform for growth in Malaysia, where more than half the population is Muslim, as well as throughout Southeast Asia."

Dato' Nazir Razak, chief executive officer of CIMB Group, said: "We are very pleased to extend our partnership with The Principal, a global retirement leader with world-class asset management expertise. CIMB-Principal has a strong cadre of investment professionals that have garnered many investment awards from the financial press. The proven investment philosophy, risk management techniques, and state-of-the-art fund management technology of The Principal will continue to benefit our joint venture as we step into a new and exciting stage of growth."

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 banking through its diverse family of financial services companies and national network of financial professionals. A member of the Fortune 500, the Principal Financial Group has $206.0 billion in assets under management2 and serves some 16.3 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.

About CIMB Group

CIMB Group is Malaysia's second largest financial services provider and is listed on Bursa Malaysia via Bumiputra-Commerce Holdings Berhad (BCHB).

CIMB Group offers a full range of financial products and services, both conventional and Islamic, enabling it to serve everyone from the largest corporations to the smallest retail customers through three main brand entities:

* CIMB Bank (including Bumiputra-Commerce Bank and Southern Bank), the consumer banking arm, which represents personal banking, business banking and direct banking;

* CIMB Investment Bank (formerly Commerce International Merchant Bankers), the investment banking arm, which represents investment banking, corporate banking, asset management and private banking; and

* CIMB Islamic (formerly Commerce Tijari), which exists as a comprehensive Shariah-compliant parallel bank for all the products and services within the Group.

The group has a staff of 20,000 in 12 countries, a market capitalization of RM20 billion and total assets of RM155 billion, with a further RM18 billion being third party funds under management. For more information, visit www.cimb.com.my .

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, 2006