Russell dedicates product strategy, staffing, to focus on growing retirement needs (Russell.com)

Russell Dedicates Product Strategy, Staffing, to Focus on Growing Retirement Needs
Launches Class R Shares for LifePoints® Funds in Response to Growing Demand for Lifestyle / Lifecycle Solutions for DC Plans and Platforms

TACOMA, Wash. — Feb. 1, 2006 — Russell Investment Group has formed a distinct product and service strategy group — Russell Retirement Services — which will deliver Russell's LifePoints® Funds directly to DC plan sponsors as well as to financial professionals advising DC plans. In addition, Russell is launching Class R shares for its LifePoints® Target Portfolio and Target Date Funds, which will be available to retirement plans and platforms beginning March 1, 2006.

The newly organized Russell Retirement Services, which is comprised of associates from both the institutional and individual investor sides of Russell's business, is led by Matt Smith, managing director, who has spearheaded Russell's DC plan services for several years by working closely with third-party intermediaries and other DC specialist firms. In this new role, Smith will oversee a broader bridge of services and products to fulfill the range of DC plan needs across the client spectrum.

"Russell has been providing asset allocated solutions for more than 35 years and, in response to increasing demand for our multi-manager solutions over the past few years, we have ramped up our efforts by adding key associates and new defined contribution platform providers," said Craig Ueland, president and CEO, Russell Investment Group. "As client and participant demands for objective, diversified investment options continue to grow, we anticipate that this new business group will allow us to maximize this important window of opportunity and provide a comprehensive lifecycle lineup for plans of all sizes."

"Increasingly, plan sponsors and financial professionals are realizing that participants are ill-served by too many investment choices and inappropriate default options when it comes to their retirement planning," said Matt Smith. "Russell has a compelling story and an investment approach well suited for the needs of any size DC plan and we believe every DC plan or platform should have lifestyle or lifecycle funds as its default investment option."

About Russell LifePoints® Funds
Russell offers simplicity for retirement plans and platforms via nine fund-of-funds portfolios — risk based and target date based — that are continually rebalanced and monitored by Russell's investment process. Beginning March 1, these funds will be available to DC plans and platforms via Class R shares.

The risk-based funds, Target Portfolio Series, are static portfolios in which the asset allocation mix does not change over time, based on an investor's time horizon. Investors choose the fund that best matches their risk profile — from conservative through aggressive — and may move to another fund as their circumstances or appetite for risk change.

The four Target Date Series Funds feature portfolios that become more conservative over time. These funds are designed so plan participants can simply choose the Fund whose stated target year is closest to their anticipated retirement date.

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 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, which operates through subsidiaries worldwide. Frank Russell Company is a subsidiary of The Northwestern Mutual Life Insurance Company.

Each of the LifePoints® Funds invests its assets in shares of a number of underlying Frank Russell Investment Company Funds. Each of the LifePoints® Funds, Target Portfolio Series, will adjust its investments within set limits based on Russell's outlook for the economy, financial markets, and relative market valuation of the asset classes represented by each underlying Fund. Each of the LifePoints® Funds, Target Date Series, will adjust its investments within set limits based on the target year of the fund. The asset allocation of each fund is based solely on time horizon. However, the LifePoints® Funds may deviate from set limits when, in Russell's opinion, it is necessary to do so to pursue each Fund's investment objective. The amounts allocated to each underlying Fund will generally vary within 10%.

LifePoints® Funds are exposed to the underlying fund specific risks directly proportionate to the underlying fund allocation. Additionally, investment in the fund involves direct expenses and a proportional share of the expenses of the underlying funds – indirect expenses. Currently, direct operating expenses, other than Rule 12b-1 distribution fees, shareholder servicing fees, non-recurring expenses and extraordinary expenses, are waived or reimbursed by Frank Russell Investment Management Company.

Russell Fund Distributors, Inc., Member NASD

RFD 06-5721