Allstate, Putnam Mark Highly Successful Anniversary of First Joint Venture Variable Annuity Product; Putnam Allstate Advisor Sells More Than $1.5 Billion in Its First Year.

Business Editors

BOSTON--(BUSINESS WIRE)--May 17, 2000

The Putnam Allstate Advisor passed its first anniversary this month with one-year sales of $1.53 billion, making it one of the most successful variable annuity product launches in history.

"With approximately $10 million in current daily sales, the Putnam Allstate Advisor has clearly demonstrated broad consumer benefit and appeal," said John Hunter, managing director of Allstate Distributors, LLC. "That success is the result of extremely strong marketing capabilities and the brand strengths and terrific teamwork of Allstate and Putnam." Added Jane Mancini, managing director and director of insurance products for Putnam Investments: "This is the most successful variable annuity launch ever for a totally new product. Working closely with Allstate, we have exceeded all expectations."

Allstate and Putnam signed a joint venture to offer variable financial products in March 1999, and two months later announced their first product, the Putnam Allstate Advisor. From the time of the launch, they have developed 334 selling agreements with some 50,000 sales representatives. The product now includes 24 variable subaccounts along with enhanced withdrawal, retirement income guarantees and beneficiary protection features.

"The Advisor's appeal is based on bringing together the best features of Putnam's underlying mutual funds and the strong insurance protection offered by Allstate Life," Mancini said. "It has proved to be an ideal product for individuals seeking a retirement tool with unique life insurance benefits for added peace of mind."

Because they include life insurance protection, variable annuities have become a highly popular investment vehicle. Contributions to a variable annuity's subaccounts are invested in underlying mutual funds and are tax-deferred until withdrawal. At the end of the first quarter of 2000, there was more than $1 trillion in variable annuity assets in the United States, and U.S. variable annuity sales in 1999 amounted to $120 billion. "With the American population getting older and living longer, variable annuities are an increasingly popular retirement savings tool," Mancini said.

The Putnam Allstate Advisor is now one of a suite of co-branded Putnam Allstate variable annuity products, including the Putnam Allstate Advisor Plus and the Putnam Allstate Advisor Apex (A-share). Other products are expected to be introduced soon. "We intend to continue to enhance the co-branded product offerings of our two companies, as part of Allstate's goal to be one of the top providers of variable annuities, and to extend our reach as a multi-channel financial services company," Hunter said.

Hunter and Mancini added that the Putnam Allstate Advisor has been highly successful with many key stakeholders, including the two companies, thousands of producers who have sold the variable annuity in record numbers, and more than 20,000 policyholders who value the product's investment and protection features and enhancements.

The Putnam Allstate Advisor is available through Putnam's distribution network of financial institutions, financial advisors and broker-dealers. Putnam has more than $44 billion in assets under management in its variable annuity and variable life products, making it the second-largest manager of annuity assets. Allstate has approximately $15 billion in variable annuity assets in separate accounts under management.

Founded in 1937, Putnam Investments is one of the nation's oldest and largest money management firms. Putnam manages $380 billion for more than 12 million individual shareholder accounts and 1,000 institutional clients. Putnam has offices in Boston, London and Tokyo.

Allstate Life Group of Companies, the nation's 17th largest life insurance business, markets a broad range of financial products and services through multiple distribution channels. The Group consists of subsidiaries of The Allstate Corporation, the nation's largest publicly held personal lines insurance company. The corporation's main business units include Allstate Personal Property and Casualty, which provides insurance for more than 14 million households and has approximately 15,500 agents in the U.S. and Canada. Allstate maintains a website at www.allstate.com.

Putnam Allstate Advisor contracts are issued by Allstate Life Insurance Company and underwritten by Allstate Distributors LLC, both of Northbrook, Ill. The contracts have limitations and are sold by prospectus only. The prospectus contains complete details on the variable annuity, the subaccounts, contract features, fees, expenses and other pertinent information. Read the prospectus carefully before you invest or send money. The contracts are not available in all states. Please consult your broker as to availability of contracts in your state.