Annual Russell Index Reconstitution Complete Adjusted Indexes Reflect 11% Decline for U.S. Equities TACOMA, WA — July 9, 2003 — Completing the annual reconstitution of its 21 unmanaged U.S. stock indexes, Russell today will post new, official membership lists for its broad-market Russell 3000® Index, small-cap Russell 2000® Index and large-cap Russell 1000® Index. The newly reconstituted indexes reflect a widespread decline in market capitalization for U.S. equities after a down year on Wall Street. Of the 289 additions, only 28 resulted from initial public offerings (IPOs) during the year. In addition, the market capitalization range for each index slid from the range at this point last year, including the largest, median and smallest company in each index. "While the broad U.S. equity market is relatively stable, market segments such as small caps and growth are not static and need routine maintenance," said Lori Richards, senior product manager, Russell indexes. "Russell's index reconstitution process objectively and completely captures the changing face of our economy to reflect current market realities." The newly reconstituted indexes reflect the following market changes:   The updated capitalization range for stocks in the Russell 3000 stretches from $286.8 billion for the largest stock (General Electric) to $116.6 million for the smallest stock, which is Verso Technologies Inc. The largest stock in the index decreased 7% from 2002 and 40% from 2001. The market capitalization of the median company in the Russell 3000, which now stands at $622.3 million, decreased 11% from $699.6 million in 2002. Only six IPOs gained enough value to jump directly into the large-cap Russell 1000 Index, representing a mere 0.14% of the newly reconstituted index's weight. In 2000, by contrast, 70 IPOs made the leap to the Russell 1000. The 22 newly added IPOs in the Russell 2000 represent only 0.1% of its total market capitalization. The number of IPOs in the small-cap index fell from 50 last year and dramatically from the 250 IPO additions in 2000, which at the time represented 13.7% of the index's weight. The Russell 2000 now ranges from a ceiling of $1.2 billion (21st Century Insurance Group) to a bottom end of $116.6 million (Verso Technologies Inc.) The capitalization of the median company in the small-cap benchmark, which now stands at $351.8 million, decreased 11% from the same point last year. The total market capitalization for the Russell 3000 stands at $10.1 trillion, which reflects an 10.8% decline from the previous year. The market capitalization for the Russell 2000 is $712.7 billion, and this figure represents 7.6% of the overall U.S. equity market as measured by the Russell 3000. Total market capitalization for the Russell 1000 is $9.37 trillion, which reflects a 9% decline for the year. Among the new faces in the Russell 3000 are 72 banks, 17 biotechnology firms and 10 real estate investment trusts/real estate development companies. MARKET CAP RANGES FOR RUSSELL INDEXES Russell 3000 Index (broad market) Largest company General Electric $286.8 billion (Largest in 2002: $309.5 billion) Median company Hydril Co. $622.3 million (Median in 2002: $699.6 million) Smallest company Verso Technologies Inc. $116.6 million (Smallest in 2002: $128.1 million) Russell 1000 Index (large caps) Largest company General Electric $286.8 billion (Largest in 2002: $309.5 billion) Median company Pioneer Natural Resources Co. $3.1 billion (Median in 2002: $3.5 billion) Smallest company LNR Property Corp. $1.2 billion (Smallest in 2002: $1.3 billion) Russell 2000 Index (small caps) Largest company 21st Century Insurance Group $1.2 billion (Largest in 2002: $1.3 billion) Median company Pegasus Solution Inc. $351.8 million (Median in 2002: $395.3 million) Smallest company Verso Technologies Inc. $116.6 million (Smallest in 2002: $128.1 million) Russell Top 200 Index (largest 200 U.S. companies in the large-cap index) Largest company General Electric $286.8 billion (Largest in 2002: $309.5 billion) Median company Cox Communications Inc. $19.2 billion (Median in 2002: $26.2 billion) Smallest company Air Products & Chemicals Inc. $ 9.9 billion (Smallest in 2002: $10.8 billion) Russell Midcap Index (smallest 800 companies in the large-cap index) Largest company Electronic Arts Inc. $9.8 billion (Largest in 2002: $10.8 billion) Median company Western Digital Corp. $2.5 billion (Median in 2002: $2.8 billion) Smallest company LNR Property Corp. $1.2 billion (Smallest in 2002: $1.3 billion) Russell 2500 Index (bottom 500 companies in the large-cap index plus Russell 2000 members) Largest company C.H. Robinson Worldwide Inc. $3.1 billion (Largest in 2002: $3.5 billion) Median company Independent Bank Corp. $463.3 million (Median in 2002: $519.1 million) Smallest company Verso Technologies $116.6 million (Smallest in 2002: $128.1 million) Each year Russell constructs its indexes by ranking the 3,000 largest stocks in the U.S. equity market by capitalization as of May 31. Russell indexes are reconstituted annually using objective criteria, primarily market capitalization, and do not reflect subjective opinions. Although companies and securities may leave the indexes during the year due to mergers or bankruptcies, replacement for securities in the Russell indexes occurs only when the indexes are reconstituted. Russell indexes serve as performance standards against which money managers and mutual funds can be evaluated. Russell estimates more than $850 billion of assets are benchmarked to Russell indexes. In addition, a record $220 billion is invested in passive index funds that use the Russell indexes as their model; a 90% increase since 1999. Frank Russell Company, 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. Copyright© Frank Russell Company 2003. All rights reserved. Frank Russell Company, a Washington, USA corporation, operates through subsidiaries worldwide. The indexes are unmanaged and cannot be invested in directly. Past performance is not indicative of future results. Russell 3000® Index: Measures the performance of the 3,000 largest U.S. securities based on total market capitalization. Russell 2000® Index: Measures the performance of the 2,000 smallest companies in the Russell 3000, representative of the U.S. small capitalization securities market. Russell 1000® Index: Measures the performance of the 1,000 largest companies in the Russell 3000, representative of the U.S. large capitalization securities market. Frank Russell Company is the owner of the trademarks, service marks and copyrights related to its indexes. RC3057			Membership Lists   Russell Beyond THE INDEXES Russell is a global leader in multi-manager investing offering: Mutual Funds Russell Managed Portfolios Institutional Funds Transition Management & Implementation Services Printer friendly version of this page Send feedback or comments Site search

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