Principal Financial Group Health Savings Accounts Introduced to Third Party Market; Expanded Sales Force to Focus on Insurers, Third Party Administrators and Investment Firms

Business Wire, May 9, 2006

DES MOINES, Iowa -- As one of the first to the market with health savings accounts (HSAs), the Principal Financial Group(R) is now offering the same product to other companies including insurers, third party administrators (TPAs) and investment firms. Companies who want to offer HSAs to their customers can now offer a health savings account from The Principal, a proven provider with expertise in not only health care, but also investment management and banking.

"As health savings accounts continue to gain momentum, our sales force is ready to help companies who don't already offer HSAs take the leap into the marketplace so they can stay ahead of their competitors," said Karli Dunkelberger, vice president business development for health savings accounts and part of a newly expanded sales force. "Because HSAs require health, investment and banking capabilities, many companies don't have the ability to manage health savings accounts alone. We're building relationships with third parties to bring this product to a new audience - their clients."

The Principal health savings account platform leverages several areas of the company to offer administration technology that makes employer and participant transactions easier. Companies have access to online enrollment and education tools such as an HSA calculator that shows participants how to make the most out of their account dollars.

"As the nation's 401 (k) leader and an innovator in health savings accounts, we understand how these accounts work now and also know what they will look like in the future," said Jerry Ripperger, director of consumer health for the Principal Financial Group. "With that in mind, we've been able to develop a comprehensive platform that uses our expertise to help companies save time and money for their clients."

For more information about health savings account offered by the Principal Financial Group, visit www.principal.com.

About 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 $205.3 billion in assets under management(2) and serves some 16.0 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.

Insurance products and services issued by Principal Life Insurance Company

(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 March 31, 2006.