Russell hires ICAP and Schneider (Russell.com)

Russell Hires ICAP and Schneider for Value Assignments in Funds Complex

TACOMA, Wash. — April 19, 2004 — Russell Investment Group has selected Institutional Capital Corporation (ICAP) and Schneider Capital Management Corporation (Schneider) to manage four value assignments each in its worldwide funds complex. The assignments were made as part of Russell's multi-manager process, which seeks to emphasize stock selection skill while providing broad diversification in each of its more than 180 investment funds.

"We believe these two value managers, which employ very different approaches to stock selection, bolster the respective fund's excess return potential relative to the benchmark," said Dennis Trittin, portfolio manager. "Both complement the other managers in these funds and therefore provide them with meaningful diversification."

The new assignments, collectively, total nearly $1.1 billion. ICAP and Schneider join eight other managers with complementary assignments in Russell's U.S. and Canadian-based equity funds.

ICAP, a large-cap value manager based in Chicago, combines top-down, macro-economic analysis with bottom-up, company financial analysis to make its investment recommendations. "This approach helps ICAP select stocks they feel are undervalued, yet have catalysts for improvement," said Trittin.

Schneider, an aggressive value manager based in Wayne, Pa., looks for stocks across the capitalization spectrum with depressed valuations relative to future earnings power. "We believe Schneider's opportunistic investment ability will add value to these funds," said Trittin.

Russell monitors and continuously researches 3,500 outside investment manager teams globally as part of its multi-manager investment process. Of these, about 120 managers are selected for specific assignments within Russell's multi-manager funds. Russell blends these fund assignments to create diversified portfolios of managers, investment styles and assets designed to help manage risk.

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.

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.

Russell Fund Distributors, Inc., is the distributor of Frank Russell Investment Company.

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 by visiting www.russell.com. Please read the prospectus carefully before investing.

Diversification does not assure a profit or guarantee against loss in declining markets.

Russell has the right to employ or terminate a money manager at any time and without prior notification, as is consistent with its role as investment manager of its mutual funds.

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