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| Principal Funds Proxy Reminder |
| Disciplined LargeCap Blend Fund |
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| Dear Shareholder: |
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| You recently received proxy materials regarding your position(s) held within the |
| Principal Disciplined LargeCap Blend Fund. The Special Shareholders Meeting will be |
| held on October 3, 2011. |
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| According to our latest records, we have not received your proxy vote for this Special |
| Meeting. Your vote is important, no matter how many shares you own. The Special Meeting |
| of Shareholders cannot be held unless shareholders holding a majority of our shares either |
| attend the meeting or vote by proxy. |
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V o t i n g i s q u i c k a n d e a s y ! |
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You may vote your proxy via the internet. Just follow the instructions printed |
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on your proxy card. |
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You may vote via touch-tone phone by dialing the toll free number printed on |
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your proxy card. |
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You may cast your vote by mail. Sign and vote your proxy card and enclose it |
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in the postage paid envelope provided in this package, allowing sufficient |
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time for receipt by us by October 3, 2011. |
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| Your vote is very important! Your immediate response will help avoid potential delays |
| and may save us significant additional expenses associated with soliciting shareholder |
| votes. |
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| Sincerely, |
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| Principal Funds |
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Additional Information and Where to Find It |
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| In connection with the proposed merger between Disciplined LargeCap Blend Fund and Principal Capital Appreciation |
| Fund, Principal Funds, Inc. filed with the SEC a Registration Statement on Form N-14 that includes a joint proxy |
| statement of Principal Funds, Inc. that also constitutes a prospectus of the acquired and acquiring funds. Principal |
| Funds, Inc. urges investors and shareholders to read the registration statement, and any other relevant documents filed |
| with the SEC, including the proxy statement/prospectus that is a part of the registration statement, because they contain |
| important information. You may obtain copies of all documents filed with the SEC regarding this transaction, free of |
| charge, at the SEC’s website (www.sec.gov). You may also obtain these documents, free of charge, from Principal |
| Funds, Inc. website (https://www.eproxy.com/principal2) under Principal Funds Proxy Statement link. We appreciate |
| your taking the time to respond to this important matter. If you have any questions regarding the Reorganization, please |
| call our shareholder services department toll free at 1-855-600-4535. |
