Russell Adds Global Mandate to Real Estate Fund (Russell.com)

Russell Adds Global Mandate to Real Estate Fund
Continues emphasis on the importance of global investments in a diversified portfolio

Tacoma, WA — July 9, 2007 — Russell Investment Group has added a global real estate money manager to its Russell Investment Company Real Estate Securities Fund. The new mandate, which will comprise less than 10% of the fund, has been assigned to Cohen & Steers, one of the largest REIT managers in the world, who will manage a diversified global real estate securities portfolio.

The addition of a global mandate aims to provide investors with access to the growth potential of non-US real estate securities markets and improve diversification both in the fund itself and, given the Real Estate Securities Fund's inclusion, as an underlying fund in selected Russell LifePoints® Funds and as a component of the Model Strategies.

"The market share of non-US real estate securities is growing dramatically as a result of macro drivers including more tax efficient REIT structures in many countries and structural changes driving property securitization in Europe and Asia," said Tim Noonan, managing director, Russell Investment Group. "This parallels the developments we have seen on the equity side and reinforces our belief that investors and their advisors should consider global investments as a critical component of a well-diversified portfolio."

"Against a backdrop of consolidation in the US real estate securities market, we have seen notable growth over the past five years in the number of managers who are expanding their expertise and focus to be global," said Bruce Eidelson, director, real estate portfolio management at Russell. "There has been a dramatically increased appetite to participate in the growth potential of the non-US real estate securities market. Given real estate markets are more closely tied to local economic conditions than other asset classes, regional real estate diversification can play an important strategic role in a portfolio."

The addition of this mandate follows the recent launch of Russell's Global Equity Fund (March 2007) and its Global Indexes (January 2007) and reflects Russell's growing emphasis on the importance of the global investment market as a source of increased investment opportunities.

Russell Investment Company Funds are available to individual investors via independent financial intermediaries. More information can be found at www.russell.com.

About Russell: Russell Investment Group provides investment products and services in more than 44 countries. Russell manages $203 billion in assets as of March 31, 2007.

Contacts:
Jennifer Tice, 253-439-2921
Kerstin Parkel, 718-875-2121

Fund objectives, risks, charges and expenses should be carefully considered before investing. For a prospectus containing this and other important information call Russell at 1-866-676-7680 or go to the prospectus and reports page to download one. Please read the prospectus carefully before investing.

Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide and is a subsidiary of The Northwestern Mutual Life Insurance Company.

Specific sector investing such as real estate can be subject to different and greater risks than more diversified investments. Declines in the value of real estate, economic conditions, property taxes and tax laws and interest rates all present potential risks to real estate investments. Fund investments in non-U.S. markets can involve risks of currency fluctuation, political and economic instability, different accounting standards and foreign taxation.

Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.

Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets.

There are no assurances that the investment goals and objectives stated in this material will be met.

Effective July 1, 2006 Frank Russell Investment Company changed its name to Russell Investment Company ("RIC"). RIC Funds are distributed by Russell Fund Distributors, Inc., and advised by Russell Investment Management Company ("RIMCo"). Effective July 1, 2006 RIMCo changed its name from Frank Russell Investment Management Company.

Securities distributed through Russell Fund Distributors, Inc. member NASD, part of Russell Investment Group.

RFD: 07-6863
First used: July 2007