The Principal Financial Group Once Again Outdoes Itself - Company Jump

The Principal Financial Group Once Again Outdoes Itself - Company Jumps Up FORTUNE Magazine's List of `100 Best Companies to Work For'

    Business Editors/Financial Editors

    DES MOINES, Iowa--(BUSINESS WIRE)--Jan. 14, 2005--

Nation's 401(k) Leader and Premier Provider of Employee Benefits Moves from 95 to 61 on the List
    With a focus on providing work/life balance, career training, competitive benefits and compensation and opportunities for development and advancement, it's no wonder the Principal Financial Group has once again moved up FORTUNE's annual "100 Best Companies to Work For" list to number 61. This marks the third straight year the nation's 401(k) leader and premier provider of employee benefits has made the prestigious list with its biggest leap yet - shooting straight up from number 95 last year.
    "Each time we are part of the FORTUNE list, it's an honor that we appreciate and are proud to receive. Our employees work extremely hard in bringing financial security to our customers, and as an employer, we recognize that dedication," said Jim DeVries, senior vice president of Human Resources for the Principal Financial Group. "We continue to adapt our work environment based on input from employees, creating a rewarding work environment that enables them to excel in their role with The Principal."
    Employee opinions factored heavily in the decision process for the annual list, as two-thirds of the company's score was weighted on responses from randomly selected employees. The Principal(R) was one of only two companies recognized from the state of Iowa and had the 11th highest percentage of female employees among the "100 Best."
    FORTUNE noted The Principal specifically for its commitment to and support of volunteerism. Annually, each employee receives 12 hours of paid company time to volunteer. In 2004, as part of the company's 125th anniversary celebration, employees also were eligible to win one of 125 days of additional paid volunteer time off through random weekly prize drawings.
    "Supporting the communities in which our employees live and work is a key factor in how The Principal operates," said DeVries. "Volunteering not only improves the lives of those who are on the receiving end, but also benefits the lives of our employees and gives them a sense of accomplishment. We are honored that FORTUNE acknowledged the employees of the Principal Financial Group for their heartfelt generosity."
    "The 100 Best Companies to Work For" list is compiled for FORTUNE by Robert Levering and Milton Moskowitz of the Great Place to Work Institute in San Francisco, based on two criteria: an evaluation of the policies and culture of each company, and the opinions of the company's employees. The latter is given more weight; two-thirds of the total score comes from employee responses to a 57-question survey which goes to a minimum of 350 randomly selected employees from each company. It asks about things such as attitudes towards management, job satisfaction, and camaraderie within the organization. The remaining one-third of the score is based on an evaluation of each company's demographic makeup, pay and benefits programs and culture. Companies are scored in four areas: credibility (communication to employees), respect (opportunities and benefits), fairness (compensation, diversity), and pride/camaraderie (philanthropy, celebrations).
    The annual "100 Best Companies to Work For" list and related stories appear in FORTUNE's Jan. 24 issue, on newsstands Jan. 17 and at www.fortune.com on Jan. 10.

    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. A member of the Fortune 500, the Principal Financial Group has $156.0 billion in assets under management(2) and serves some 14.7 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(R)" and "The Principal(R)" are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.

    (2) As of September 30, 2004.

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CONTACT: The Principal Financial Group, Des Moines Rhonda Clark-Leyda, 515-247-6634 clark-leyda.Rhonda@principal.com or Tina Marchetti, 515-248-0065 marchetti.tina@principal.com

KEYWORD: IOWA INDUSTRY KEYWORD: INSURANCE BANKING SOURCE: The Principal Financial Group

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