Press Release

Wells Real Estate Funds Selected Among Best in the Nation for Benefits
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Judges Name Norcross Firm as One of
"The Principal 10 Best Companies for Employee Financial Security"
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Leo Wells: "Great Benefits Attract Great People"

DES MOINES, Iowa (Oct. 16, 2006) - Wells Real Estate Funds, Inc., a national real estate investment company based in metro Atlanta, has been named one of the 2006 winners of The Principal® 10 Best Companies for Employee Financial Security.

An independent judging panel of business leaders and employee benefits experts selected Wells Real Estate Funds for its dedication to its employees as demonstrated by its outstanding package of employee benefits, noting in particular the real estate company's commitment to health care insurance, wellness programs and retirement savings.

The nationwide program, sponsored by the Principal Financial Group, recognizes growing companies (between five and 1,000 employees) that excel at contributing to their employees' long-term financial security, particularly through employee benefits programs.

"At a time when many employers are challenged to maintain strong employee benefits, Wells Real Estate Funds has gone the extra mile to give its employees an edge on their financial futures," said Renee Schaaf, vice president at the Principal Financial Group. "Wells Real Estate Funds stood out among the competition and is a role model for providing the very best in employee benefits."

Wells' commitment to its approximately 400 employees has enabled it to implement a benefits program that is well aligned with employee needs.

"We have worked to make sure we have great benefits. Great benefits attract great people. When you end up with great people, you end up with a great company," said Leo Wells, president and founder of Wells Real Estate Funds. "Being recognized as one of The Principal 10 Best Companies makes me feel like we've accomplished what we set out to do."

A summary of best practices gleaned from Wells Real Estate Funds and other winners will be published in a Best Practices Guide available in January 2007 at www.principal.com.

"Wells Real Estate Funds has a fantastic holistic approach to helping their employees with their financial security," said Nancy Ayres, general manager, Clipper Belt Lacer Company, a 2005 winner of The Principal 10 Best and judging panel member. "In addition to a very strong 401(k), Wells is one of the few employers anymore that we found that paid 100 percent of the employee and dependent medical premiums. They also have a very strong wellness program and they include the spouses in many of their programs."

Also among The Principal 10 Best Companies¿2006 are: Argon St. Fairfax, Va.; Central Iowa Power Cooperative, Cedar Rapids, Iowa; ITAGroup. Inc., West Des Moines, Iowa; Eastern Financial Florida Credit Union, Miramar, Fla.; GTE Federal Credit Union, Tampa, Fla.; Howalt-McDowell Insurance, Inc., Sioux Falls, S.D.; McNaughton & Gunn, Saline, Mich.; Michigan Farm Bureau Family of Companies, Lansing, Mich.; and West Bend Mutual Insurance Company, West Bend, Wis.

A distinguished judging panel of business leaders and employee benefit experts worked with Mathew Greenwald & Associates, a premier market research company, to choose the winners. The names of the entrants were shielded from the judges until after they selected their winners.

The program judges included: Dallas L. Salisbury, president/CEO, Employee Benefit Research Institute; David Wray, president, Profit Sharing/401(k) Council of America; Nevin E. Adams, editor-in-chief, PLANSPONSOR Magazine; Karen Ignani, president & CEO, America's Health Insurance Plans; Corey Rosen, executive director, National Center for Employee Ownership; Nancy Ayres, general manager, Clipper Belt Lacer Company; Dan McCarthy, Consulting Actuary, Milliman USA; Jeffrey McAulay, vice president, Moran Towing.

The Principal 10 Best Companies for Employee Financial Security is a nationwide program that recognizes growing companies that excel, particularly through employee benefits, at contributing to their employees' financial futures and sense of financial security. Entry forms for the 2007 recognition program will be available at www.principal.com February 1, 2007.

About Wells Real Estate Funds

Founded in 1984, Wells Real Estate Funds is a national real estate investment company. More than 200,000 people have invested in Wells-sponsored investment programs through their financial representatives. Collectively, these programs own more than $7.5 billion in assets totaling more than 38 million square feet of space. For more information, see www.wellsref.com.

Benefit highlights:

100 percent employer-paid medical insurance premiums for employees and dependents
401(k) plan with a 100 percent match up to 11 percent deferred (after gradual increases during the first four years of service); average employee deferral of 11 percent
100 percent employer-paid premiums for long-term care insurance
100 percent employer-paid premiums for short-term and long-term disability insurance

About the Principal Financial Group The Principal Financial Group® (The Principal ®)¹ is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance, and banking through its diverse family of financial services companies and national network of financial professionals. A member of the Fortune 500, the Principal Financial Group has $206.0 billion in assets under management² and serves some 16.3 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including discussions regarding Wells' use of proceeds and certain other factors that may affect future earnings or financial results. Such statements involve risks and uncertainties, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. Factors that may cause actual results to differ materially include changes in general economic conditions, changes in real estate conditions, construction delays, increases in interest rates, lease-up risks, lack of availability of financing, and lack of availability of capital proceeds.

EDITORS NOTE: News media are invited to attend an award ceremony with Wells and The Principal at 3 p.m. on Oct. 24 at the Atlanta Athletic Club.

¹"The Principal Financial Group" and "The Principal" are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.
²As of June 30, 2006