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Russell and Research Affiliates agree to launch Fundamental Index® series
New relationship will produce innovative strategy index series

Tacoma, WA and Newport Beach, CA — June 25, 2010 — Russell Investments and Research Affiliates have agreed to launch a new index series based on the ground-breaking Fundamental Index® methodology.

The new relationship aims to produce readily investable "strategy indexes," a category of indexes intended for investors who seek a more active investment approach. Through these new indexes, investors will have the opportunity to obtain much sought-after alternative beta exposures that are appropriate for their portfolios.

"We're very pleased to collaborate with Research Affiliates on this innovative index design," said Ron Bundy, managing director for Russell Indexes. "Working with the leader in fundamentally weighted index methodology, we'll construct strategy indexes of the highest quality to serve the increasing demand for beta investment solutions."

Bundy added that today's announcement, which continues Russell's long track record of innovative index launches, doesn't change the firm's belief that Russell's market capitalization-weighted indexes remain the best description of the investable opportunity set and thus the most appropriate benchmarks.

"Fundamental Index strategies are rapidly gaining acceptance around the world. We are thrilled to see Russell, a pioneer in index construction, embrace the concept, and to work with them on the development of these new fundamentally weighted strategy indexes," said Rob Arnott, chairman of Research Affiliates.

The Fundamental Index methodology selects and weights securities by fundamental measures of company size, as opposed to using the price-weighted methodology employed by traditional indexes. Currently, approximately $50 billion in assets are invested in products that use non-price-weighted index strategies as the underlying index.

The initial offering likely will be a global index that includes U.S. and non-U.S. exposures. Details on the new series will be issued closer to their launch late in the third quarter.

These new investment tools will be available for licensing to exchange-traded fund sponsors, institutional investors and large plan sponsors.

About Russell
Founded in 1936, Russell Investments is a global financial services firm that serves institutional investors, financial advisers and individuals in more than 40 countries. Over the course of its history, Russell's innovations have come to define many of the practices that are standard in the investment world today, and have earned the company a reputation for excellence and leadership. The firm has $179 billion in assets under management, as of March 31, 2010. To see how Russell helps to improve financial security for people, visit www.russell.com.

Russell launched its family of indexes in 1984 to more accurately measure U.S. market segments and better track investment manager behavior for its investment management and consulting businesses. The innovative index design includes float-adjusted market capitalization, annual reconstitution, multifactor style analysis as well as objective and transparent rules. Russell Indexes account for more than $3.9 trillion in benchmarked assets, as of December 31, 2009.

About Research Affiliates, LLC.
Research Affiliates, a global leader in innovative investing and asset allocation strategies, operates worldwide from its base in Newport Beach, Calif. Dedicated to solving complex investment issues, the firm creates innovative strategies that respond to the current needs of the market. Leveraging its strong research focus, Research Affiliates distributes products in partnership with some of the world's leading financial institutions. These affiliations take the form of direct asset management, sub-advisory services, and licensing agreements. The firm is majority employee-owned and employs a team of 50 dedicated professionals. Approximately $50 billion in assets are managed worldwide using investment strategies developed by Research Affiliates, as of March 31, 2010.

Contacts:
Steve Claiborne, Russell Investments, 206-505-1858
Tucker Hewes, Hewes Communications, Inc., 212-207-9451




Russell Investments is a Washington, USA corporation, which operates through subsidiaries worldwide.

Russell Investment Group is a subsidiary of The Northwestern Mutual Life Insurance Company.

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

Research Affiliates is the owner of the trademarks, service marks, patents and copyrights related to the Fundamental Index® and the Fundamental Index® methodology.

Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.

This is not an offer, solicitation or recommendation to purchase any security or the services of any organization.

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