The Principal Financial Group Introduces New Term Life Insurance Products; Enhanced Product Line Offers More Competitive Pricing and Flexibility Than Ever before

Business Wire, August 21, 2006

DES MOINES, Iowa -- The Principal Financial Group(R) introduces an updated line of term life insurance products that now includes new 15 and 30-year term products, an enhanced conversion provision to age 70 and a new Super Standard risk class. These latest features for 2006 are designed with affordable pricing and competitive underwriting.

"The new Principal Term line of life insurance products offers lower cost and more flexible options for life insurance marketers and financial professionals to help their clients protect their assets for the unexpected," said Deanna Strable, senior vice president of Individual Life and Specialty Benefits, Principal Financial Group. "Our innovative approach to underwriting complements our life portfolio, with a team of knowledgeable underwriters who specialize in personal service available for each case."

With the addition of 15 and 30-year term products, The Principal(R) now offers five different term life insurance options: Annually Renewable Term (ART), 10-Year, 15- Year, 20-Year and 30-Year Term. Super Preferred and Super Standard ratings are now available, along with a new conversion privilege at the earlier of the level premium period or age 70 without evidence of insurability to any cash-value policy offered by The Principal at the time of conversion.

To help consumers identify overall benefit needs, the Principal Financial Group also offers the From Here to Security(SM) program, a package of tools that includes step-by-step guides and interactive calculators to help clients understand and assess financial protection needs, while evaluating coverage options. From Here to Security is available at www.principal.com/fromheretosecurity.> 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 management(2) 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.

(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