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“Tacoma-based Frank Russell Company has posted new official membership lists for the broad market Russell 3000 Index, small cap Russell 2000 Index and large cap Russell 1000 Index.The recently rebalanced indexes bear witness to a shift toward the New Economy, Russell officials reported. Of the 624 companies added to the Russell 3000, 42 percent were placed in the Technology sector and 19 percent were added to the Health Care sector.The additions seem to show the new economy to be taking shape in the west, with 36 percent of this year’s additions based in California alone.The U.S. equity market is a dynamic creature, said Meredith Brooks, managing director of Institutional Investment Services at Russell. The large number of initial public offerings, mergers, and acquisitions this year were responsible for a record number of changes to our indexes.Brooks said Russell’s annual index rebalancing process objectively captures current market realities and ensures the company’s family of 21 U.S. equity indexes are the best possible measures of the broad equity market, as well as its segments. Over $177 billion is invested in index funds using Russell’s U.S. stock indexes as their model, according to the company.The updated capitalization range for stocks in the Russell 3000 stretches from $520.2 billion for the largest stock – General Electric, to $177.9 million for the smallest – Independent Bank Corporation. This capitalization range varies from last year’s $407.2 billion – Microsoft, to Towne Services at $178.2 million.The market capitalization of the median company in the Russell 3000 index increased 13 percent this year – from $701.7 million in 1999 to $791.1 million in 2000.The number of initial public offerings also increased substantially. This year, 320 of the companies moving into the Russell 3000 Index were IPOs, representing 4.4 percent of the total index capitalization. In 1999, the index had 179 IPOs join its membership.Seven IPOs went directly to the Russell 1000 Index, representing 3.6 percent of its marketcap.The small cap Russell 2000 Index – comprising the smallest 2,000 companies within the Russell 3000 Index – ranges from a top of $1.5 billion for Lear Corporation, to Independent Bank Corporation at the bottom end.The Russell 2000 saw 250 IPOs added this year, representing 13.7 percent of its capitalization. This number jumped dramatically from last year’s 142 IPOs added to its rolls, which then represented 6.6 percent of the small cap market.Total market capitalization for the Russell 2000 is $1,160 billion, representing 7.6 percent of the U.S. equity market overall, as measured by the Russell 3000.The capitalization of the median company in the Russell 2000 increased 9 percent from the same point in 1999, from $428 million to $466.1 million.Russell constructs its indexes each year by ranking the 3,000 largest stocks in the U.S. equity market by capitalization as of May 31. The indexes are rebalanced annually using objective criteria, primarily market capitalization, and do not reflect subjective opinions or committee decisions, according to the company.Companies and securities may leave the indexes during the course of the year due to mergers or bankruptcies, replacement for securities in the indexes only occurs at annual rebalancing.Index methodology excludes limited partnerships, limited liability companies, royalty trusts, closed-ended investment management companies, ADRs, preferred stock, convertible preferred stock, participating preferred stock, pink-slipped companies, OTC bulletin board companies, and warrants and rights.Stocks trading below $1 at rebalancing are excluded. Real estate investment trusts and IPOs are eligible for inclusion.Russell is a leading investment management and advisory firm, operating in 35 countries. The company’s investment management business has $60 billion in assets under management, with retainer consulting relationships with clients representing over $1 trillion worldwide.”