Principal
Financial Principal Life
Group Insurance Company
December 1, 2000
Mr. Ralph C. Eucher
President
Principal Investors Fund, Inc. - Bond & Mortgage Securities Fund
Principal Financial Group
Des Moines, IA 50392-0200
Dear Mr. Eucher
Principal Life Insurance Company intends to purchase 10,000,000 shares of Common
Stock of Principal Investors Fund, Inc. - Bond & Mortgage Securities Fund, 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
