SOURCE: Principal Capital Group, Inc.

June 09, 2008 08:00 ET

Principal Capital Group, Inc. Defines Its Principal Green Fund Share Dividend

BEVERLY HILLS, CA--(Marketwire - June 9, 2008) - Principal Capital Group, Inc. (PINKSHEETS: PCPG) announced today that management has defined the terms of its Principal Green Fund, Inc. share dividend to its shareholders. Effective 5:00pm PDT June 10, 2008, holders of Principal Capital Group, Class "A" common stock shall be entitled to a 2:1 share dividend of Principal Green Fund. The firm shall instruct National Stock Transfer to issue the shareholders of record, the following ratio: For every two shares each holder of Principal Capital Group, Inc. Class "A" common stock holds, he/she will receive one additional share of Principal Green Fund, Inc. Management has completed the required 15c-211 and is making its filing with FINRA on June 11, 2008. Upon acceptance by FINRA, it is the intention of management to price Principal Green Fund between $16.00 and $18.25 per share. This calculation is based on Principal Green Fund's current portfolio holdings and the potential investment holdings under current due diligence review. Principal Green Fund has 75 million shares authorized and will have 8,275,000 shares issued and outstanding upon completion of the share dividend distribution.

Management shall now add Principal Green Fund as a portfolio investment similar to the way in which it currently holds Principal Structure Fund, Inc., an industry specific construction fund, and Principal Mortgage Fund, Inc., an industry specific mortgage fund

Principal Capital Group would like to provide further clarification of the current share structure of Principal Capital Group. As of June 9, 2008, there are 16,550,000 shares issued and outstanding with 4 million shares in the tradable float. The firm has no outstanding convertible debt and holds no long term debt on its balance sheet. There are no other classes of security authorized. Based on the previous split calculation, the shares of Principal Capital Group have a $10.00 share price. Upon completion of the Principal Green Fund dividend, Principal Capital Group will add between $4.83 and $5.51 per share to its Net Asset Value. The firm intends to distribute a similar dividend for Principal Structure Fund and Principal Mortgage Fund the beginning of July 2008.

GREEN's mission is to provide Bridge financing of up to $500,000, and/or invest up to $5 Million in public or privately held companies that promote the development of initiatives which are environmentally friendly and provide a vision of the future not so dependent upon fossil fuels. GREEN collaborates on projects and develops solutions that can be taken to market in the United States and abroad.

Principal Capital Group, Inc. is a holding company that holds a portfolio of assets of sector-specific Business Development Company ("BDC") 40 Act funds. A BDC is a public company which elects to become subject to sections 55 through 65 of the Investment Company Act of 1940. BDCs may raise money by investing in new ventures and by issuing shares of stock which become freely-tradable and legend-free simply upon notice to the United States Securities and Exchange Commission ("SEC").

PCPG has the following web site: Interested parties may get up-to-date corporate information and shareholder information at this site.

Forward-Looking Statement to follow:

Certain statements contained herein are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those discussed in filings made by the Company with the Securities and Exchange Commission.

Contact Information

    Principal Capital Group, Inc.
    Harold Gregg, Interim President
    Email Contact