Thrivent Investment Management Hires T. Rowe Price, Mercator to Subadvise International, Small-Cap Value Portfolios

Business Wire, July 19, 2004

MINNEAPOLIS -- Thrivent Investment Management Inc., a subsidiary of Thrivent Financial for Lutherans, has hired T. Rowe Price and Mercator Asset Management as subadvisers to manage stock portfolios for the organization's variable product offerings, including variable annuities and variable universal life insurance. The subadvised portfolios extend beyond Thrivent Investment Management's proprietary money management focus, offering Thrivent Financial members a wider range of high-quality investment choices.

The impacted variable product portfolios include:

-- The Thrivent Partner International Stock Portfolio.

-- The Thrivent Partner Small-Cap Value Fund Portfolio.

"T. Rowe Price and Mercator complement Thrivent Investment Management's internally managed product line and investment philosophy," said Karl Anderson, Thrivent Financial for Lutherans vice president of investment product management. "The equities universe is large and diverse, so it only makes sense for Thrivent Investment Management to focus on our core competencies and strengths while we partner with select outside firms on noncore asset classes and management styles."

Before selecting T. Rowe Price and Mercator, Thrivent Financial screened hundreds of reputable subadviser candidates, analyzing each candidate's investment philosophy, process, people, performance, price, marketing support and brand recognition.

"In fitting with Thrivent Financial's investment tenets, it was important to us that the subadviser demonstrate consistent, competitive performance over the long run," Anderson said. "T. Rowe Price's and Mercator's historical performance numbers proved they are more interested in maintaining a long-term focus than betting on short-term market trends."

Thrivent Financial has also devised an investment profile that is a blend of 50 percent growth and 50 percent value, with T. Rowe Price and Mercator serving as co-subadvisers for growth and value styles, respectively, on the newly merged Thrivent Partner International Stock Portfolio.

The Thrivent Partner Small-Cap Value Portfolio managed by T. Rowe Price offers Thrivent Financial members an opportunity to participate in a portfolio management style that has been closed to new T. Rowe Price investors. T. Rowe Price has demonstrated strong long-term performance and has an exceptionally deep and experienced management team supporting its small-cap value discipline.

Thrivent Financial for Lutherans is a Fortune 500 financial services organization helping nearly 3 million members achieve their financial goals. Thrivent Financial and its affiliates offer a wide range of financial solutions and have $63.6 billion (March 31, 2004) in assets under management. As a not-for-profit organization, Thrivent Financial sponsors national outreach programs and activities that support congregations, schools, charitable organizations and needy individuals. For more information, visit www.thrivent.com.

Securities are offered through Thrivent Investment Management Inc., 625 Fourth Ave. S., Minneapolis, Minn. 55415-1665, a wholly owned subsidiary of Thrivent Financial for Lutherans. Member NASD. Member SIPC.