Principal Financial Group Board Declares Cash Dividend

Principal Financial Group announced today that its board of directors has declared a cash dividend of $1.5916361 per share on its 5.563 percent Series A non-cumulative perpetual preferred stock and a cash dividend of $0.4662181 per share on its 6.518 percent Series B non-cumulative perpetual preferred stock. The preferred dividends are payable on Sept. 30, 2005 to preferred stockholders of record as of Sept. 1, 2005.

The Principal Financial Group provides 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.