American Skandia Adds ASAF Kemper Small-Cap Growth Fund to Family of Mutual Funds.

Business Editors

SHELTON, Conn.--(BUSINESS WIRE)--March 8, 2000

American Skandia Marketing, Incorporated has added the ASAF Kemper Small-Cap Growth Fund to its popular family of mutual funds, the American Skandia Advisor Funds (ASAF). Scudder Kemper Investments, Inc. is one of the 10 largest mutual fund companies in the United States and is widely recognized as one of the most experienced investment management organizations worldwide.

The ASAF Kemper Small Cap Growth Fund will aim to achieve above-average capital appreciation by investing in small-cap companies exhibiting high rates of earnings growth. The fund will invest in companies with $1.5 billion or less in market capitalization. Peter Chin, Senior Vice President of Scudder Kemper Investments Inc. and a veteran in financial services with 27 years of investing experience, will be the fund's manager.

"We are very pleased to add Scudder Kemper to one of the strongest lineups of equity managers in the industry today," said Wade Dokken, Chief Operating Officer of American Skandia, Incorporated. "The introduction of the ASAF Kemper Small-Cap Growth Fund reflects American Skandia's ongoing commitment to offer financial advisors what they want -- money management with a wide diversity of assets and investment styles to chose from."

American Skandia Advisor Funds are one of the fastest growing funds in the history of the mutual funds industry, according to data provided by the Financial Research Corp.. With the addition of this new fund, ASAF now offers 18 funds, managed by 16 world-class managers across 12 Morningstar categories. The American Skandia Advisor Funds now have total client assets of more than $4 billion.

Following the multi-manager strategy made popular by the American Skandia lineup of variable annuity products, the American Skandia Advisor Funds provide investors with the ability to choose from among a broad range of investment styles with many of the best known load and no-load money managers in the nation. The fund family is comprised of 16 investment managers, including Scudder Kemper Investments; Janus Capital Corporation; Marsico Capital Management, LLC; Massachusetts Financial Services Company; AIM Capital Management, Inc.; Founders Asset Management, LLC and T. Rowe Price Associates, Inc.

This exceptional management is further enhanced by several unique innovations brought to market by American Skandia, including an X-Share class, which provides a 2.5 percent investor bonus on qualified money, and AS Goodwill, an optional death benefit (a feature first introduced to the marketplace by American Skandia Life Assurance Corporation) designed to protect an investor's beneficiaries from the risk of a market fall.

Variable annuities and variable life insurance are issued by American Skandia Life Assurance Corporation. Mutual funds are issued by American Skandia Advisor Funds. All products are distributed by American Skandia Marketing, Incorporated. American Skandia is located at One Corporate Drive, Shelton, CT 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.