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

TACOMA, Wash. -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, Russell will post the new, official membership lists for the Russell 3000 as well as the small-cap Russell 2000( Index and large-cap Russell 1000) Index.

"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 $317.8 billion (Largest in 2003: $286.8 billion)
Median company Freds Inc. $822.4 million (Median in 2003: $622.3 million)
Smallest company Microtune Inc. $175.8 million (Smallest in 2003: $116.6 million)

Russell 1000 Index (large caps)
Largest company General Electric $317.8 billion (Largest in 2003: $286.8 billion)
Median company Providian Financial Corp. $4.0 billion (Median in 2003: $3.1 billion)
Smallest company UGI Corp. $1.6 billion (Smallest in 2003: $1.2 billion)

Russell 2000 Index (small caps)
Largest company Energen Corp. $1.6 billion (Largest in 2003: $1.2 billion)
Median company Presidential Life Corp. $496.4 million (Median in 2003: $351.8 million)
Smallest company Microtune Inc. $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 $317.8 billion (Largest in 2003: $286.8 billion)
Median company Prudential Financial Inc. $23.4 billion (Median in 2003: $19.2 billion)
Smallest company Agilent Technologies Inc. $12.4 billion (Smallest in 2003: $9.9 billion)

Russell Midcap( Index (smallest 800 companies in the large-cap index)
Largest company Kroger Co. $12.3 billion (Largest in 2003: $9.8 billion)
Median company Federated Investors Inc. $3.2 billion (Median in 2003: $2.5 billion)
Smallest company UGI Corp. $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. $4.0 billion (Largest in 2003: $3.1 billion)
Median company Identix Inc. $640.0 million (Median in 2003: $463.3 million)
Smallest company Microtune Inc. $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.

For further information please contact:

Tyler Bradford,
Intermarket Communications, 212-888-6115

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