Princor
Financial
Services
Corporation
December 21, 2000
Mr. Ralph C. Eucher
President
Principal Partners SmallCap Growth Fund, Inc.
Principal Financial Group
Des Moines, IA 50392-0200
Dear Mr. Eucher
Principal Life Insurance Company intends to purchase 500,000 shares of Common
Stock of Principal Partners SmallCap Growth Fund, Inc., par value $.01 per share
(the "Shares") at $10.00 per share. In connection with such purchase, Principal
Life Insurance Company represents and warrants that it will purchase such Shares
as an investment and not with a view to resell, distribute or redeem.
PRINCIPAL LIFE INSURANCE COMPANY
By /s/ Michael D. Roughton
--------------------------------
Michael D. Roughton
Counsel
MDR/ka
