DES MOINES, Iowa--(BUSINESS WIRE)--Dec. 3, 2003--Principal Financial Group, Inc. (NYSE:PFG) today announced a realignment of its organizational structure and senior leadership changes. The reorganization results in three major business divisions and realigns distribution, from a consolidated organization, into each division.

"This strategic realignment will drive performance by intensifying each of our businesses' focus on our key markets, giving each division complete control of profit/loss results and distribution," said J. Barry Griswell, chairman, president and chief executive officer. "This is a natural next step in leveraging our leadership position in the small and medium business market, while streamlining the organization."

    The following changes are effective immediately:

    --  John E. Aschenbrenner is named president -- Insurance and
        Financial Services, with responsibility for the life and
        health segment and mortgage banking.

    --  Larry D. Zimpleman is named president -- Retirement and
        Investor Services with responsibility for U.S. and
        international asset accumulation and Principal Bank.

    --  Michael T. Daley, executive vice president, will leave the
        company as a result of the reorganization.

James P. McCaughan continues as president of Principal Global Investors, with responsibility for global asset management. Michael H. Gersie continues as executive vice president and chief financial officer with responsibility for financial operations, information technology, and administrative services.

"We appreciate Mike Daley's many contributions. His boundless energy and experience helped strengthen the distribution and marketing functions and positioned them for continued sales growth and alignment with the businesses they support," said Griswell.

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 mortgage banking through its diverse family of financial services companies. More employers choose the Principal Financial Group for their 401(k) plans than any other bank, mutual fund, or insurance company in the United States(2). A member of the Fortune 500, the Principal Financial Group has $134.8 billion in assets under management(3) and serves some 14.8 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 trademarks referring to Principal Financial Group, Inc.

(2) CFO Magazine, April/May 2003, based on total plans served in 2002 by insurance companies, banks and investment firms.

(3) As of September 30, 2003

    CONTACT: Principal Financial Group, Des Moines
             Media Contact:
             Tina Marchetti, 515-248-0065
             marchetti.tina@principal.com
             or
             Investor Relations Contact:
             Tom Graf, 515-235-9500
             investor-relations@principal.com

    SOURCE: Principal Financial Group