(Russell.com)

Russell Hires Three Additional Managers For Tax-Managed Large-Cap Fund

TACOMA, Wash. — Oct. 15, 2003 — Russell has selected Sands Capital Management, Inc., John A. Levin & Co., and Kayne Anderson Rudnick Investment Management to manage new assignments in the Frank Russell Investment Company Tax Managed Large-Cap Fund. The assignments were made as part of Russell's multi-manager process, which seeks to emphasize stock selection skill while providing broad diversification in each of its more than 160 funds.

Arlington, Va.-based Sands Capital, New York-based Levin and Los Angeles-based Kayne Anderson join J.P. Morgan Investment Management Inc. in the Fund.

"The addition of these three managers to this Fund realigns it to be multi-manager and multi-style in the same way as Russell's other funds," said Steve Skatrud, portfolio manager. "They offer different approaches to investing and provide the Fund with meaningful diversification, and we believe this change will benefit the Fund over the long term."

Skatrud said the realignment of this Fund to be multi-manager resulted from intensive research of tax sensitive managers conducted over the past three years and new custodian technology.

Sands Capital buys shares of large-cap companies that are leaders in their respective industries and possess characteristics that allow them to grow their earnings over the long-term at levels above their competitors, while Kayne Anderson's focus on attractively valued larger companies with high financial quality provides the Fund with a more defensive segment. For its part, Levin's 'contra-momentum' oriented traditional value strategy seeks out-of-favor companies that are expected to benefit from positive catalysts.

"These three strategies complement each other as well as J.P. Morgan's diversified core strategy," said Skatrud.

As part of its multi-manager investment process, Russell monitors and continuously researches 3,500 outside investment manager teams globally. Of these, about 120 managers are selected for specific assignments within Russell's multi-manager funds. Russell blends these fund assignments to create diversified portfolios of managers, investment styles and assets designed to manage risk.

Russell Investment Group, a global leader in multi-manager investment services, provides investment products and services in more than 35 countries. Russell manages more than $76 billion in assets and advises clients worldwide representing more than US$1.6 trillion. Founded in 1936, Russell is a subsidiary of Northwestern Mutual and is headquartered in Tacoma, Wash., with additional offices in New York, Toronto, London, Paris, Singapore, Sydney, Auckland and Tokyo. For more information, go to www.russell.com.

Note: Fund objectives, risks, charges and expenses should be carefully considered before investing. A prospectus containing this and other important information can be obtained by calling 800-787-7354 or by visiting www.russell.com. Please read the prospectus carefully before investing.

Russell Investment Group is a registered trade name of Frank Russell Company, a Washington, USA corporation, operates through subsidiaries worldwide. Frank Russell Company is a subsidiary of The Northwestern Mutual Life Insurance Company.

Russell Fund Distributors, Inc., is the distributor of Frank Russell Investment Company.

Diversification does not assure a profit or guarantee against loss in declining markets.

Large capitalization (large cap) investments involve stocks of companies generally having a market capitalization between $10 billion and $200 billion. The value of securities will rise and fall in response to the activities of the company that issued them, general market conditions and/or economic conditions.

Income from funds managed for tax efficiency may be subject to an alternative minimum tax and/or any applicable state and local taxes.

The Russell logo is a trademark and service mark of Frank Russell Company.

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