Deadline Nears For Companies To Enter National Employee Benefits Recognition; Prestigious Judging Panel Unveiled for The Principal 10 Best Companies 2006

Now in its fifth year, the prestigious program, which is sponsoredby the Principal Financial Group(R), honors growing companies (five to1,000 employees) for excellence in employee benefits programs. Winnersare selected by an independent panel of judges and are showcasednationally as role models.

"Being recognized by such a respected group of industry expertsand a leader like The Principal(R) along with national and localrecognition in the media are tremendous endorsements of the benefitswe work so hard to provide to our employees," said Krista Howland,human resources administrator for Flexible Steel Lacing Company, oneof The Principal 10 Best Companies--2005. "Our employees are one ofour greatest assets. This recognition reinforces that we are takinggood care of them."

"The recognition sparked an invitation from the Department ofLabor to speak at their prestigious National Summit on RetirementSavings," said Rob Zeldenrust, general manager of Fremont Co-operativeProduce Company. "And now I am also being asked to speak locally andeven at the state level. Being named one of The Principal 10 Best hasbeen rewarding in ways I would never have thought possible."

A blue ribbon panel of judges has been assembled to work withMathew Greenwald & Associates, a premier market research company, inevaluating entrants and selecting winners. This year's judges include:Dallas L. Salisbury, president and CEO, Employee Benefit ResearchInstitute; Nevin E. Adams, editor-in-chief, PLANSPONSOR Magazine KarenIgnagni, president and CEO of America's Health Insurance Plans (AHIP);Corey Rosen, executive director and founder of the National Center forEmployee Ownership; David Wray, president, Profit Sharing/401(k)Council of America; Dan McCarthy, Consulting Actuary Milliman USA andseveral recent winners of The Principal 10 Best.

"Now in our fifth year, The Principal 10 Best award is recognizedas a significant achievement and is a tremendous tool for attractingand retaining high performers," said Renee Schaaf, vice president, ThePrincipal. "As a leader in the financial services industry, weunderstand that financial security is a critical element in anyemployers' success in hiring, keeping and motivating employees.Winning companies are held up as shining examples; providinginspiration to other employers and gaining recognition among theiremployees and potential recruits as employers of choice."

The innovative strategies of The Principal 10 Best winners arepublished in an annual Best Practices Guide made available at nocharge to any organization athttp://www.principal.com/theprincipal10best/index.htm .

In addition to being showcased in a best practices guide on ThePrincipal Web site, www.principal.com., winning companies receiveother national and local media recognition as well as an opportunityto share a gift with their community. The Principal Financial GroupFoundation, Inc. will make a donation in the name of each company to alocal charity of each organization's choice.

To enter, companies can visithttp://www.principal.com/theprincipal10best/enter.htm and complete theentry form. Companies are not required to be clients of The Principalto enter. Qualifying companies may submit entries without having beennominated.

About The Principal 10 Best Companies Program

The Principal 10 Best Companies for Employee Financial Security isa nationwide program that searches for and recognizes small andmedium-size companies that excel in providing for employee financialsecurity. Entries for the 2006 search will be accepted through April21, 2006. The program is open to any company with between five to1,000 employees. To qualify, all entrants must have been based in theUnited States and have provided a broad range of employee benefits forat least five years. Qualifying companies must have, at a minimum,offered "traditional" employee benefits, such as those relating toretirement, health, life or disability. No entry fee is required, andemployees of The Principal are not eligible to enter. For moreinformation, visithttp://www.principal.com/theprincipal10best/index.htm

About the Principal Financial Group

The Principal Financial Group(R) (The Principal (R))(1) is aleader in offering businesses, individuals and institutional clients awide range of financial products and services, including retirementand investment services, life and health insurance, and bankingthrough its diverse family of financial services companies. A memberof the Fortune 500, the Principal Financial Group has $195.2 billionin assets under management(2) and serves some 15.6 million customersworldwide from offices in Asia, Australia, Europe, Latin America andthe United States. Principal Financial Group, Inc. is traded on theNew York Stock Exchange under the ticker symbol PFG. For moreinformation, visit www.principal.com.

EDITORS' NOTE: To obtain a copy of The Principal Best PracticesGuide for Employee Financial Security or to arrange an interview withwinners from The Principal 10 Best Companies--2005, call Terri Hale at515/283-8858.

Insurance issued by Principal Life Insurance Company. Securitiesoffered through Princor Financial Services Corporation, member SIPCand/or independent broker dealers. Securities sold by a PrincorRegistered Representative are offered through Princor. Bank Productsoffered through Principal Bank(R), member FDIC, Equal Housing Lender.Principal Life, Princor(R) and Principal Bank are members of thePrincipal Financial Group, Des Moines IA 50392.

Insurance and securities are not insured by the FDIC; are notobligations or deposits of Principal Bank nor guaranteed by PrincipalBank; and are subject to investment risks, including possible loss ofthe principal invested.

(1) "The Principal Financial Group" and "The Principal" areregistered service marks of Principal Financial Services, Inc., amember of the Principal Financial Group.

(2) As of December 31, 2005