American Life Insurance of NY Launches Direct Annuity To Registered Investment Advisors Offering 85 Underlying Funds from 12 Fund Families With No Insurance Fees

Business Wire, June 7, 2002

Business Editors

NEW YORK--(BUSINESS WIRE)--June 7, 2002

The American Life Insurance Company of New York (`American Life') is launching Direct Annuity, a new variable annuity for registered investment advisors ("RIA"s).

Direct Annuity is the industry's first variable annuity without any insurance charges. American Life's paperless, all-electronic process is easy to use: RIAs simply go to advisor.americanlifeny.com to register online, and can then buy Direct Annuity immediately for their clients.

Direct Annuity offers 85 funds from 12 leading managers (American Century, Berger, Delaware Investments, Invesco, Navellier, PIMCO, Pioneer, Royce, Safeco, Scudder, Third Avenue Funds and Van Kampen). A wide variety of styles and strategies including growth, value, short, medium and long duration fixed income enable RIAs to tailor investments to each client's specific requirements.

Like all variable annuities, Direct Annuity provides tax-deferral if the annuitant doesn't take withdrawals to age 59 1/2. Unlike any other variable annuity, however, Direct Annuity imposes no insurance fees. The client pays only the management fees on the underlying funds, receiving a great value.

American Life is able to eliminate insurance fees on Direct Annuity due to its low cost structure, its electronic platform and its distribution strategy. As is typical in the variable annuity industry, funds participating in Direct Annuity remit part of their fund management fees to American Life. This revenue-share is the only compensation required by American Life for Direct Annuity.

For more information about American Life or Direct Annuity, visit advisor.americanlifeny.com or call Mary Kaczmarek at 212.741.9311.

American Life also offers immediate term life insurance through its fully underwritten and simplified issue products. American Life has been providing financial protection to families since 1955 and is fully licensed in 50 states and the District of Columbia.

American Life is rated A- (Excellent) by A.M. Best Co., a respected authority on the financial strength of insurance companies.

The Company's distribution model is built on partnering with other firms and integrating American Life's all-electronic platform with partners' existing technology and business practices, and retaining some risk. The resulting collaboration may involve varying degrees of human intermediation in the sales and underwriting process.