American Skandia Replaces Janus Capital Management, LLC as Sub-Advisor; Goldman Sachs Asset Management, William Blair & Co. to Replace Janus

Business Wire, Sept 27, 2002

Business Editors

SHELTON, Conn.--(BUSINESS WIRE)--Sept. 27, 2002

American Skandia Investment Services, Incorporated ("American Skandia"), the investment advisor for American Skandia Trust and American Skandia Advisor Funds, announced today that it is replacing Janus Capital Management, LLC as the sub-advisor to three AST portfolios and three ASAF funds, effective November 11, 2002.

American Skandia is making these changes consistent with its responsibility as Investment Advisor to these portfolios and consistent with its practice of retaining sub-advisors to manage assets. American Skandia Trust is one of the underlying mutual funds whose portfolios are offered as investment options in variable insurance products issued by American Skandia Life Assurance Corporation. American Skandia Advisor Funds is a multi-manager retail mutual fund family distributed by American Skandia Marketing, Incorporated.

American Skandia is ending its sub-advisory relationship with Janus because performance of the portfolios on a risk-adjusted basis has been below benchmarks. With respect to the Overseas Portfolio, the change was carried out due to performance below benchmarks and a need to re-open the portfolio to new investors that has been closed since March 2000.

Goldman Sachs Asset Management has been selected to manage the large-cap concentrated growth and mid-cap growth domestic equity portfolios, which have assets of $1.98 billion as of August 30, 2002. William Blair & Company, LLC has been selected to manage the international growth portfolios, which have assets of more than $523 million as of August 30, 2002.

Michael Murray, chairman of American Skandia's Investment Committee, stated, "American Skandia's role is to select stock and bond managers whose qualifications meet demanding criteria, including investment experience and past performance."

To select these new sub-advisors, American Skandia screened a total of 485 large-cap concentrated growth managers, 1,025 international equity managers, and 762 mid-cap growth managers, both retail and institutional, using such criteria as performance, process, discipline, tenure and capacity.

"We have a high level of confidence in these sub-advisors' abilities to manage money in a variety of markets," continued Murray. "The growth investing strategy of the Goldman Sachs concentrated growth team, headed by Herb Ehlers, has a 21-year track record. And the William Blair international team has been led for over 5 years by George Greig, who himself has more than 23 years of investing experience."

These changes will be implemented through sub-advisor changes to existing portfolios:

- Goldman Sachs Asset Management will replace Janus Capital Management, LLC as the sub-advisor on the AST JanCap Growth Portfolio and ASAF Janus Capital Growth Fund. The names will be changed to the AST Goldman Sachs Concentrated Growth Portfolio and the ASAF Goldman Sachs Concentrated Growth Fund.

- Goldman Sachs Asset Management will replace Janus Capital Management, LLC as the sub-advisor on the AST Janus Mid-Cap Growth Portfolio and ASAF Janus Mid-Cap Growth Fund. The names will be changed to the AST Goldman Sachs Mid-Cap Growth Portfolio and the ASAF Goldman Sachs Mid-Cap Growth Fund.

- William Blair & Company, LLC will replace Janus Capital Management, LLC as the sub-advisor on the AST Janus Overseas Growth Portfolio and ASAF Janus Overseas Growth Fund. The names will be changed to the AST William Blair International Growth Portfolio and the ASAF William Blair International Growth Fund.

Variable annuities and variable life insurance are issued by American Skandia Life Assurance Corporation and distributed by American Skandia Marketing, Incorporated. Both companies are located at One Corporate Drive, Shelton, Connecticut 06484.

American Skandia Advisor Funds are distributed by American Skandia Marketing, Incorporated, located at One Corporate Drive, Shelton, Connecticut 06484.

Call 1-800-SKANDIA for a prospectus containing more complete information on charges, expenses and tax consequences. It should be read carefully before you invest or send money. Information about the company and its products can also be found on the company Web site at www.americanskandia.com.

William Blair & Company, L.L.C. is an independent investment firm offering investment banking, investment management, equity research, institutional and private brokerage, and private capital to individual, institutional and issuing clients. Since 1935, the Chicago-based firm has been dedicated to helping its clients achieve their financial objectives by providing quality products and services. Located in Chicago, Hartford, London, San Francisco, Tokyo, Vaduz, and Zurich, William Blair & Company is entrusted with more than $20 billion in client assets. For more information, please visit www.williamblair.com.

Goldman Sachs Asset Management is the asset management arm of Goldman Sachs, which manages $336 billion as of August 30, 2002 and had net inflows of $67 billion in 2001. Goldman Sachs Asset Management has been providing discretionary investment advisory services since 1989 and has investment professionals in all major financial centers around the world. The company offers investment strategies across a broad range of asset classes to institutional and individual clients globally. Founded in 1869, Goldman Sachs is a leading global investment banking, securities and investment management firm.