Principal
Mutual
Funds


               ****NOTICE OF RESCHEDULED SHAREHOLDER MEETING ****
                           PRINCIPAL MIDCAP FUND, INC.

November 3, 1999


Dear Shareholder:

This letter is to notify you that the Shareholder  Meeting originally  scheduled
for November 2, 1999 has been postponed and  rescheduled  for November 24, 1999,
at 11:00 a.m.  CST at 680 8th Street,  Des Moines,  Iowa.  This move was made as
insufficient  proxy  votes were  received  to hold the  meeting  and address all
agenda items on its originally scheduled date.

According to our latest information,  we have not yet received your proxy. It is
possible that you own multiple  accounts and completed ballots were received for
some but not all accounts. Please help us obtain the votes necessary to pass all
ballot  issues by voting your shares  today.  Regardless of the number of shares
you own, your vote is very important.

We have enclosed a new ballot for each non-voted account for this Fund. To avoid
the costs of additional solicitations, please complete the ballot right away and
return it in the enclosed envelope.
As an alternative, you may vote by the following means:

     1.   Sign and date your ballot and fax both sides to 1-888-451-8683
     2.   Vote  by  phone  by  calling  our  proxy  solicitor,   D.F.  King,  at
          1-800-628-8536
     3.   Vote via  teletouch  using the control  number on your ballot,  simply
          call 1-888-221-0697
     4.   Vote via the  Internet  at  www.proxyweb.com,  again using the control
          number found on your ballot

The Board of Directors of Principal  MidCap Fund  strongly  believes each ballot
proposal  is in  the  shareholders=  best  interests.  As a  result,  the  Board
recommends a AFOR@ vote on each proposal.

Please  vote  today.  Your  timely  response  will help save the  expense  of an
additional mailing.  Remember,  your vote is important no matter how many shares
you own. Thank you in advance for your time and consideration in this matter.

Sincerely

/s/Ralph C. Eucher

Ralph Eucher
President


Securities offered through Princor Financial Services Corporation, a member of
the Principal Financial Group, Des Moines, Iowa 50392-0200 (800) 247-4123/FAX
(515) 248-4745