Russell Tops $100 Billion in Assets Under Management (Russell.com)

Russell Tops $100 Billion in Assets Under Management As More Investors Seek Multi-Manager Solutions

TACOMA, Wash. — February 23, 2004 — With its multi-manager investment strategy taking hold in markets around the world, Russell Investment Group today surpassed a milestone of $100 billion in assets under management (AUM). Russell assets have grown 41% since the beginning of 2003, due to both the improving U.S. equity market and a strong flow of new clients in all of the company's major service markets. In 2003 Russell brought in record sales of more than $12 billion from institutional clients worldwide.

"We are in the midst of a major move toward disciplined, diversified management of investment assets and toward organizations that are trusted by their clients and partners. As a result, a record number of individuals and institutions are choosing Russell's multi-manager investing," said Craig Ueland, Russell president and CEO. "In 2003, we set records for the number of new clients in the UK/Europe, Japan, Australia and North America. As a world leader in the multi-manager arena, Russell is well positioned to continue its remarkable growth rate."

Russell, which opened its first multi-manager funds in 1980, reached its first billion in 1982 and $10 billion under management by 1991. Russell funds experienced steady growth in each subsequent year though the largest gain by far occurred in 2003 as assets jumped from $67 billion to $95 billion.

Today's announcement does not include assets under management from the pending acquisition of Pantheon, the global private equity fund-of-funds specialist. Completion of the acquisition agreement with Pantheon, which is expected in the next few weeks, will add about $7 billion to Russell's total assets.

The $100 billion milestone reinforces that, according to a 2003 Cerulli Associates' report, Russell remains the global market leader among "manager-of-managers" investment firms. The Cerulli Report^™ shows Russell holds a 26% share of the $227 billion global manager-of-managers market, including 33% of non-U.S. manager-of-managers assets. The report is based on manager-of-managers assets under management as of Dec. 31, 2002. (Cerulli defines manager-of-managers assets as "assets managed as segregated accounts by multiple subadvisors.")

Russell also just received, for the second consecutive year, the "Multi-manager of the Year" award as part of Global Investor magazine's annual review of the industry.

Ueland said Russell's ongoing success in the multi-manager space is due to three important differentiators. "Russell has the largest and most experienced group of manager researchers in the world," he said. "We also have a proven investment track record as well as a business proposition that allows our clients and partners to focus on their core competencies while delegating the highly specialized task of researching and selecting managers to Russell experts."

In recent years, Russell has expanded its global array of multi-manager investment programs by developing business alliances with leading financial services organizations in major markets around the world. Besides expanding globally, Russell also has broadened its original focus on corporate pension plans to include service to endowments and foundations, investment advisors, banks, brokers and other service organizations. Russell currently employs 1.300 associates globally, and Ueland reports that steady growth will drive the company to hire about 100 additional people in a variety of investment management, service and sales roles during 2004.

About Russell
Russell Investment Group, a global leader in multi-manager investing, provides investment products and services in more than 35 countries. Russell manages more than $100 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, 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.