American Skandia's Mutual Fund Line-up Continues to Grow as Product Line Evolves.

Business Editors

SHELTON, Conn.--(BUSINESS WIRE)--March 1, 2001

Four Funds Added to ASAF; Class II C-Share Structure Enhanced

American Skandia Marketing, Incorporated has added four new funds to its American Skandia Advisor Funds (ASAF) and updated its C-Share structure to include an additional 1% up-front sales load, for a total of 2% up-front commission.

The changes come as part of the ongoing development of the American Skandia fund family. The modification of the ASAF C share class(a) is consistent with an emerging industry trend in which several companies have modified their Class C structure to a "Class II" C-share in an effort to address changes in the financial professional marketplace.

Three of the four new funds are unique to the ASAF platform, while the fourth fund is also available in the American Skandia variable annuity platform.

"In our continuing development of a world-class mutual fund organization, we are taking several steps to address changes in the marketplace. This is reflected in the new funds from T. Rowe Price, Alliance, Alliance/Sanford Bernstein and INVESCO. As well, the modifications to our C share reflect the commitment of the financial professional to the long-term success of their customers. We are here to help facilitate the success of that relationship," said Michael Murray, Senior Vice President, National Markets Director for ASAF.

"American Skandia's variable annuity platform has been the foundation that has supported ASAF. Within the last several years, we have seen growth in these two different product lines. These changes will nurture that growth as well as provide some flexibility for financial professionals," Murray added.

The new funds join a product line at American Skandia that launched in 1997. The addition of the new funds brings the total number of offerings to 27 in the American Skandia Advisor Funds.

The new funds are:

ASAF T. Rowe Price Tax-Managed Fund

Portfolio Manager: Donald J. Peters

Objective: Seek attractive long-term capital appreciation on an

after-tax basis. The fund will invest primarily in

large-capitalization stocks selected mainly from the 1,000 largest

U.S. companies.

ASAF Alliance/Bernstein 50/50 Growth + Value Fund

Portfolio Managers: Growth portion: Alfred Harrison and Stephanie

Simon/Value Portion: Lewis A. Sanders and Marilyn Goldstein Fedak.

Objective: Seek capital growth by investing approximately 50% of

its assets in growth stocks of large companies and approximately

50% of its assets in value stocks of large companies.

ASAF Sanford Bernstein Core Value Fund

Portfolio Managers: Lewis A. Sanders and Marilyn Goldstein Fedak.

Objective: Seek long-term capital growth by investing primarily in

common stocks. The fund seeks to identify individual companies

with earnings growth potential that may not be recognized by the

market at large.

ASAF INVESCO Health Sciences Fund

Portfolio Managers: John R. Schroer and Thomas R. Wald.

Objective: Seek growth by investing primarily in the equity

securities of companies that develop, produce or distribute

products or services related to health care.

In addition to the fund changes, American Skandia has announced a management change, replacing Rydex Global Advisors, Inc. with ProFunds Advisors, LLC as sub-advisor of the ASAF Rydex Managed OTC Fund. The new name of the fund will be the ASAF ProFund Managed OTC Fund. William Seale of ProFunds Advisors, LLC, will manage it. The fund's objective remains the same.

C.R. Shaw, Director of ASAF Marketing, said: "Mutual funds continue to grow in popularity, and American Skandia is paying close attention to fund flows in the industry to see where investors are putting their money. These changes are a reflection of our concerted efforts to provide investors with world-class money managers derived from our rigorous investment management selection process."

(a)Under the modification to the Class 2 C-share structure, the CDSC and CDSC period will not change. Variable annuities and variable life insurance are issued by American Skandia Life Assurance Corporation.

Variable annuities, variable life insurance and mutual funds are distributed by American Skandia Marketing, Inc. Both companies are 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.