Prudential Annuities First to Offer New Generation of Guaranteed Protection Optional Benefits; Launch of Lifetime Five Living Benefit and Highest Daily Value Death Benefit Fills Gaps in Missing Protection for Retirement Planning

Business Wire, March 14, 2005

NEWARK, N.J. -- Prudential Annuities, the domestic annuity business for Prudential Financial, Inc. (NYSE: PRU), announced today that it has launched Lifetime Five(SM), a variable annuity optional living benefit that guarantees, subject to the program rules, five percent annual compounded investment growth for up to 10 years, and a five percent annual withdrawal stream for life. In addition, Prudential Annuities is introducing a Highest Daily Value variable annuity optional death benefit that automatically locks in an annuity's best day of account value during the measuring period.

Both Lifetime Five and Highest Daily Value are available on most annuity products issued by American Skandia Life Assurance Corporation, a Prudential Financial Company, and Pruco Life Insurance Company (in New York, Pruco Life Insurance Company of New Jersey). Launching these pioneering features makes Prudential the first in the industry to offer a new generation of guaranteed annuity benefits that fill long-standing gaps in protection inherent in outdated features.

"By offering new features that meet the true needs of the marketplace, we've sent a clear message that continuing to create intelligent financial solutions is paramount if we're going to remain one of America's leading annuity manufacturers," said David Odenath, president of Prudential Annuities.

Details of each benefit include:

Lifetime Five

--Lifetime Five provides investors with a guaranteed stream of withdrawal income that is based on the greatest of: their annuity investment growing at five percent compounded annually for up to the first 10 years, or the highest account value attained at any contract anniversary date for up to the first 10 years, or the account value on the first withdrawal date.

--Lifetime Five provides a choice of guaranteed retirement income: five percent of the account's protected withdrawal value as of a specified date annually for life, or a seven percent withdrawal stream guaranteed for at least 14.2 years.

--Investors may elect Lifetime Five any time after purchasing an annuity that offers the benefit through Prudential or American Skandia. And, no waiting period is required to begin taking the guaranteed withdrawal income.

--Cost is 0.60% of the average daily net assets in the sub-accounts per year.

Withdrawals under the program are subject to all of the terms and conditions of the annuity, including any withdrawal charges that may apply. Withdrawals of taxable amounts will be subject to ordinary income tax, and if taken prior to age 59 1/2, a 10% federal tax penalty may apply.

Highest Daily Value

--The death benefit is automatically pegged to the day of the annuity's highest attained account value up to the benefit target date, meaning that if the annuity value declines due to market performance, the death benefit is locked in at the highest daily value.

--Cost is 0.50% of the average daily net assets in the sub-accounts per year. This benefit may be elected at issue only and may not be revoked.

Both benefits are launched as part of Prudential's Self Security Program(SM), which provides investors and investment professionals with an understanding of how an annuity solution fits into a retirement portfolio.

"It has become apparent that relying on corporate pension plans and Social Security benefits may not be enough," said Jacob Herschler, vice president and head of marketing for Prudential Annuities. "Today's investors need an effective means of growing and protecting their retirement savings. A clear understanding of the benefits annuity products provide in reaching those objectives is crucial."

All guarantees are based on the claims-paying ability of the issuer. The guarantees do not apply to the investment performance or safety of the underlying portfolio in the variable annuity. As with most guaranteed benefits, guarantees under the Lifetime Five Income Benefit and Highest Daily Value Death Benefit can be reduced or eliminated if excess withdrawals are made.

Investors should consider the contract and underlying portfolios' investment objectives, risks charges and expenses carefully before investing. This and other important information is contained in the prospectuses, which can be obtained from your financial professional. You should read the prospectuses carefully before investing.

Variable annuities issued by American Skandia Life Assurance Corporation, Shelton, CT, or Pruco Life Insurance Company (in NY, Pruco Life Insurance Company of New Jersey), both located in Newark, N.J. American Skandia Marketing, Incorporated and Prudential Investment Management Services, distributors (members SIPC). All are Prudential Financial companies.

Prudential Financial companies, with approximately $500 billion in total assets under management as of December 31, 2004, serve individual and institutional customers worldwide and include The Prudential Insurance Company of America, one of the largest life insurance companies in the United States. These companies offer a variety of products and services, including life insurance, mutual funds, annuities, pension and retirement related services and administration, asset management, securities brokerage, banking and trust services, real estate brokerage franchises and relocation services. For more information, visit www.prudential.com.