DES MOINES, Iowa--(BUSINESS WIRE)--Feb. 8, 2006--From "Freedom Gardens" to "Presidential Trees", the Principal Financial Group(R) and National Garden Clubs, Inc. are awarding nearly $200,000 in grants to civic development projects across the nation that honor those who serve our country. "Let Freedom Ring" is the theme of the Principal Financial Group Civic Development Grant Program 2005 - 2007, which is awarding up to $3,000 for each local project.

193 clubs in 45 states, plus one club in Peru, have been selected as winners of this year's program, with awards totaling $180,350. (A complete list of winners and projects is provided at the end of the release.) Suggested endeavors for the program included planting Presidential Trees, developing Freedom Gardens at historic sites, and creating new or refurbishing existing Blue Star Memorial markers.

This is the second grant program established by National Gardens Clubs, Inc. under the sponsorship of The Principal Financial Group Foundation, Inc. The first program, the Principal Financial Group Historic Gardens Project, awarded more than $178,000 in grants, which benefited 125 gardens at historic sites in communities across the nation, including the Hearst Castle Gardens in California and the Edison Moonlight Garden in Florida. The value of the completed projects is more than $1 million.

"We are very pleased to continue our relationship with the National Garden Clubs," said Libby Jacobs, Community Relations director, The Principal. "Our new theme, to 'Let Freedom Ring,' will support inspiring civic development in communities across the country and pay tribute to the brave men and women who sacrifice so much to serve our nation."

Jacobs added "The civic projects lend themselves well to VA hospitals, cemeteries, military establishments, schools and highways, many of which will be of historic value."

About National Garden Clubs, Inc.

National Garden Clubs, Inc. (NGC) is a not-for-profit educational organization with its headquarters in St. Louis, Missouri, United States. It is composed of 50 State Garden Clubs and the National Capital Area, 7,183 member garden clubs and 221,943 members. In addition, NGC proudly recognizes 447 International Affiliates from Canada to Mexico and South America, from Bermuda to South Africa, Australia and Japan, as well as 49 National Affiliates within the United States. For more information about NGC, visit www.gardenclub.org.

About "Let Freedom Ring," the Principal Financial Group Civic Development Grant Program, 2005-2007

The National Garden Clubs, Inc. accepted applications from affiliated local garden clubs for grants to create new civic projects or restore existing ones that honor those who serve our country. The program awards grants up to $3,000 for each project, which must begin after June 2005 and be finalized by May 2007. The grant program is a community outreach project of the Principal Financial Group Foundation Inc., which was formed in 1987. For more information contact: Joan Craig, Principal National Garden Club Program Chairman, jpetals@sbcglobal.net.

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. A member of the Fortune 500, the Principal Financial Group has $188.4 billion in assets under management(2) and serves some 15.3 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.

Listing of Grant Recipients by State

(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 September 30, 2005

Copyright Business Wire 2006

Principal Financial Group, Inc.

Principal Financial Group, Inc.

Principal Financial Group^® (Nasdaq: PFG) is a global financial company with 18,500 employees1 passionate about improving the wealth and well-being of people and businesses. In business for more than 140 years, we’re helping more than 51 million customers1 plan, protect, invest, and retire, while working to support the communities where we do business, and build a diverse, inclusive workforce. Principal^® is proud to be recognized as one of America’s 100 Most Sustainable Companies2, a member of the Bloomberg Gender Equality Index, and a Top 10 “Best Places to Work in Money Management3.” Learn more about Principal and our commitment to building a better future at principal.com.

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