One of the Industry's First Equity Indexed Annuities Now Renovated; Lincoln Benefit Life Company, an Allstate Company, Enhances the Saver's Index Annuity Series

Business Wire, June 6, 2005

NORTHBROOK, Ill. -- Ups and downs in the stock market have made some consumers saving for retirement hesitant about easing back into it. Yet, knowing the gains that could be achieved makes some, even the most risk averse, interested in equity indexed annuities, which may provide higher potential earnings than a fixed annuity or CD, yet still provide protection from downside market risk.

To meet the needs of those individuals, Lincoln Benefit Life, an Allstate Company, has enhanced its popular equity indexed annuity offering, the Saver's Index(R) Annuity series, with new competitive features. These features are applicable only to new contracts issued.

Specifically, the Saver's Index Annuity series now includes a 50 basis points higher cap for accumulated values over $100,000. In addition, the series contains a two percentage point cap bailout provision in which customers can remove their money without surrender charges if the cap decreases by two percentage points or more.

The Saver's Index Annuity series, which includes a single premium equity indexed annuity, also features the Saver's Index Annuity III, a flexible premium equity indexed annuity. Producers and consumers alike will be particularly interested in the changes made to the Saver's Index Annuity III; the surrender charge period is now contract year based, as opposed to each deposit having its own surrender charge, which provides additional liquidity to the customer. Additionally, the surrender charge waiver, which already included a nursing home waiver, now also includes terminal illness and unemployment waivers.

"The Saver's Index Annuity series is well known among our producers for being simple in design and dampening the impact of market volatility, along with providing solid returns," said Tim Vander Pas, head of annuity product management, Allstate Life Insurance Company. "However, it was also among the first equity indexed annuity products on the market in 1995, so we enhanced the product with several new features that we think will capture the attention of customers who are concerned about the current interest rate environment and possible future losses, yet still want to participate in the gains of the S&P 500."

The Saver's Index Annuity series credits interest linked to changes in the S&P 500(R) Index, which can offer potentially higher returns than traditional fixed annuities and CDs. At the same time, the minimum guaranteed interest rates protect a customer from the downside market risk that could be found in other investments. For example, the single premium product guarantees that at the end of seven years, the contract value will be at least 110% of what the customer put in, and the Saver's Index Annuity III product guarantees that at the end of 10 years, the contract value will be at least 121% of what the customer put in, assuming no withdrawals have been taken by the customer during that timeframe.

As an added benefit for producers who offer the product, the series now includes Eclipse Illustration Software, which makes it easier to explain to customers, in hypothetical terms, how the product works in different equity rate environments.

In addition to these new features, the Saver's Index Annuity series also offers:

--Choice of two competitive interest crediting participation rate and cap options; and

--The longest published renewal rate history of any indexed annuity on the market

The Saver's Index Annuity series is offered via Allstate agents and independent financial representatives appointed to sell Lincoln Benefit Life Company products. Allstate agents and independent financial representatives may obtain more information by registering and logging onto www.accessallstate.com.

Guarantees are based on the claims paying ability of Lincoln Benefit Life Company.

The Savers Index Annuity series is comprised of single and flexible premium deferred annuities and is issued by Lincoln Benefit Life Company, a wholly owned subsidiary of Allstate Life Insurance Company. The index on which interest rates are based may not behave in the future as in the past. Consumers may not invest directly in the S&P 500(R) index. Distributions taken prior to annuitization are generally considered to come from the gain in the contract first. Withdrawals of gain are taxed as ordinary income and, if taken prior to age 59 1/2, may be subject to an additional 10% federal tax penalty.

"S&P 500(R)" is a trademark of The McGraw-Hill Companies, Inc., and has been licensed for use by Lincoln Benefit Life Company. Saver's Index Annuity is not sponsored, endorsed, sold or promoted by Standard & Poor's, and Standard and Poor's makes no representation regarding the advisability of purchasing the products. The S&P 500 does not include dividends paid on the underlying securities, and therefore, does not reflect the total return of the underlying stock.

Lincoln Benefit Life, an Allstate Company, sells variable and fixed annuities, variable and fixed life insurance, as well as long-term care insurance. Variable products are underwritten by ALFS, Inc., a wholly owned subsidiary of Allstate Life Insurance Company.