American Skandia Expands Investment Options -- Gabelli Joins Innovative Advisor-Based Family of Mutual Funds -- ASAF Sales Reach $1 Billion --.

Business Editors

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

As part of its commitment to provide financial professionals with the best in money managers across all asset classes, American Skandia Marketing, Incorporated has added five new mutual funds to its American Skandia Advisor Funds (ASAF). The new funds continue building on American Skandia's strict Investment Manager Selection Process.

The new lineup of funds also marks the first two special Equity mutual funds offered through ASAF, which will offer financial professionals and their clients even greater flexibility when creating an investment portfolio.

"We recognize that our clients want even greater choice," said Timothy Cronin, Vice President/Director of Investments & Research at American Skandia Marketing, Incorporated. "These additions will provide the flexibility of a multi-manager fund family with leading fund managers in all asset classes - not just traditional core investment options such as large cap growth. This will allow investors to create optimized portfolios for their clients."

First introduced to the marketplace in 1997, American Skandia Advisor Funds have continued to grow steadily, as reflected in the company's $1 billion mutual fund sales for the second quarter of 2000 - a 19 percent increase over the same period in 1999.

American Skandia's American Skandia Advisor Funds now total 23 mutual funds covering 17 distinct asset classes, managed by 17 of the best-known names in money management.

The new funds in the American Skandia Advisor Funds line are: -- ASAF Gabelli All Cap Value Fund -- Portfolio Manager: Mario J. Gabelli -- Objective: Invest in securities of companies of all sizes,

considering changes in economic and political outlooks as well as

individual corporate developments.

ASAF Janus Mid-Cap Growth Fund -- Portfolio Manager: Matthew A. Ankrum -- Objective: Seek long-term capital growth by investing primarily in

common stocks with growth potential; identify individual companies

with unrecognized earnings growth potential.

ASAF Alger All-Cap Growth Fund -- Portfolio Managers: David Alger & Seilai Khoo -- Objective: Invest in the equity securities of companies of all

sizes, emphasizing larger or smaller companies at various times

based on company assessments and market conditions.

ASAF INVESCO Technology Fund -- Portfolio Manager: William R. Keithler -- Objective: Invest in technology-related company equity securities.

The Sub-Advisor uses a bottom-up approach focusing on company

fundamentals and growth prospects, looking to invest in strongly

managed companies.

ASAF Rydex Managed OTC Fund -- Portfolio Manager: Michael P. Byrum, CFA -- Objective: Invest primarily in NASDAQ 100 securities and

instruments, such as futures contracts and options related to the

NASDAQ 100. The fund's value will tend to increase or decrease on

a daily basis by 125% of that day's increase or decrease in the

NASDAQ 100.

American Skandia will also be substituting value specialists GAMCO Investors, Inc., a subsidiary of Gabelli Asset Management Company, for T. Rowe Price Associates, Inc. as sub-advisor of the ASAF T. Rowe Price Small Company Value Fund.

ASAF Gabelli Small Cap Value Fund -- Portfolio Manager: Mario J. Gabelli -- Objective: Invest a minimum of 65% of total assets in small

company securities that currently appear to be undervalued, but

have good capital appreciation prospects.

American Skandia's product lines include variable annuities, mutual funds, variable life insurance and qualified retirement plans. 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.

Variable insurance products are issued by American Skandia Life Assurance Corporation. Mutual funds are American Skandia Advisor Funds, Inc. All products are distributed by American Skandia Marketing, Incorporated. Both companies are located at One Corporate Drive, Shelton, Connecticut 06484.