Newly Reconstituted Russell Indexes Reflect Market's Widespread Growth in Past Year (Russell.com)

Newly Reconstituted Russell Indexes Reflect Market's Widespread Growth in Past Year
Annual Process Ranks Top 3,000 Companies by Market Cap

July 1, 2004 — Russell's newly reconstituted family of 21 unmanaged U.S. stock indexes reflect widespread growth in market capitalization for U.S. equities after a positive year on Wall Street. The smallest company in the broad-market Russell 3000® Index, for example, surged 51% from this point last year, while the largest company increased 11%. In addition, 100 of the newly added companies were initial public offerings during the year.

On July 6, official membership lists for the Russell 3000 as well as the small-cap Russell 2000® Index and large-cap Russell 1000® Index will be posted on russell.com.

"Russell's index reconstitution process objectively and completely captures the changing face of our economy to reflect current market realities," said Lori Richards, senior product manager, Russell indexes.

The newly reconstituted indexes reflect the following market changes:

The updated capitalization range for stocks in the Russell 3000 stretches from $317.8 billion for the largest stock (General Electric) to $175.8 million for the smallest stock. The market capitalization of the median company in the Russell 3000, which now stands at $822.4 million, increased 32% from $622.3 million in 2003.
Of the 100 IPOs that entered the Russell 3000, 10 gained enough value to jump directly into the Russell 1000, representing 0.24% of the large-cap index's weight. The 90 newly added IPOs in the Russell 2000 represent 0.35% of its total market capitalization.
The Russell 2000 now ranges from a ceiling of $1.6 billion to a bottom end of $175.8 million. The capitalization of the median company in the small-cap benchmark, which now stands at $496.4 million, increased 41% from this time last year.
The total market capitalization for the Russell 3000 stands at $13.3 trillion, which reflects a 32% increase from this point last year. The market capitalization for the Russell 2000 is $1.2 trillion, which represents 9.2% of the U.S. equity market as measured by the Russell 3000.

Market Cap Ranges for Russell Indexes

Russell 3000® Index (broad market)
Largest Company: General Electric Co.	Market Cap= $317.8 billion	(Largest in 2003: $286.8 billion)
Median Company: Freds Inc.	Market Cap= $822.4 million	(Median in 2003: $622.3 million)
Smallest Company: Microtune Inc.	Market Cap= $175.8 million	(Smallest in 2003: $116.6 million)

Russell 1000® Index (large cap)
Largest Company: General Electric Co.	Market Cap= $317.8 billion	(Largest in 2003: $286.8 billion)
Median Company: Providian Financial Corp.	Market Cap= $4.0 billion	(Median in 2003: $3.1 billion)
Smallest Company: UGI Corp.	Market Cap= $1.6 billion	(Smallest in 2003: $1.2 billion)

Russell 2000® Index (small cap)
Largest Company: Energen Corp.	Market Cap= $1.6 billion	(Largest in 2003: $1.2 billion)
Median Company: Presidential Life Corp.	Market Cap= $496.4 million	(Median in 2003: $351.8 million)
Smallest Company: Microtune Inc.	Market Cap= $175.8 million	(Smallest in 2003: $116.6 million)

Russell Top 200® Index (largest 200 U.S. companies in the large-cap index)
Largest Company: General Electric Co.	Market Cap= $317.8 billion	(Largest in 2003: $286.8 billion)
Median Company: Prudential Financial Inc.	Market Cap= $23.4 billion	(Median in 2003: $19.2 billion)
Smallest Company: Agilent Technologies Inc.	Market Cap= $12.4 billion	(Smallest in 2003: $9.9 billion)

Russell Midcap® Index (smallest 800 companies in the large-cap index)
Largest Company: Kroger Co.	Market Cap= $12.3 billion	(Largest in 2003: $9.8 billion)
Median Company: Federated Investors Inc.	Market Cap= $3.2 billion	(Median in 2003: $2.5 billion)
Smallest Company: UGI Corp.	Market Cap= $1.6 billion	(Smallest in 2003: $1.2 billion)

Russell 2500™ Index (bottom 500 companies in the large-cap index plus Russell 2000 members)
Largest Company: Scana Corp.	Market Cap= $4.0 billion	(Largest in 2003: $3.1 billion)
Median Company: Indentix Inc.	Market Cap= $640.0 million	(Median in 2003: $463.3 million)
Smallest Company: Microtune Inc.	Market Cap= $175.8 million	(Smallest in 2003: $116.6 million)

Each year Russell constructs its indexes by ranking the 3,000 largest stocks in the U.S. equity market by capitalization as of the end of May. 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. More than $1.4 trillion in assets are benchmarked to Russell indexes, and more than $364 billion is invested in passive index funds that use them as a model; a 100% increase since 1999.

About Russell
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 $107 billion in assets and advises clients worldwide representing more than $1.8 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.

Contact: Steve Claiborne 253.594.1858

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.

Frank Russell Company is the owner of the trademarks, service marks and copyrights related to its indexes.

Indexes are unmanaged and cannot be invested in directly.

RC 4002