American Skandia Launches ASAP III, a Traditional, Flexible VA.

Business Editors

SHELTON, Conn.--(BUSINESS WIRE)--Nov. 18, 2002

New Product Offers Foundation for Building Retirement Savings

American Skandia Marketing, Incorporated has launched ASAP(SM) III, a traditional variable annuity designed to provide investors with a flexible platform that offers low fees and the opportunity to add optional benefits that may enhance the value to the investor.

ASAP III will replace ASAP II, while at the same time AS Protector(R) and AS Impact(R) will be eliminated to simplify the American Skandia product line-up.

"ASAP III offers annuity buyers a product with total annual asset-based insurance charges of 1.25% that permanently fall to just 0.65% after the 8th year. With lower expenses, ASAP III also offers a traditional, core variable annuity that investors can build upon, according to their long-term financial plans," said Jac Herschler, American Skandia's Vice President of Variable Annuity Marketing.

American Skandia's ASAP III will offer a CDSC period of eight years. If a contract owner makes additional deposits to the annuity or adds available optional features to the contract, the CDSC is not extended.

American Skandia's Chief Marketing Officer, Patricia Abram, noted: "ASAP III follows a history of successful annuity products driven by innovation from American Skandia, including XTra Credit SIX(SM), which launched in February 2002 and is currently the top bonus annuity product available in the marketplace, according to the Variable Annuity Research Data Service(a). The launch of ASAP III to American Skandia's variable annuity line means a stronger, fundamental line-up of innovative investment solutions that provide investors with excellent options for planning their financial futures."

(a) The amount of any Credits applied to a contract can be recovered by American Skandia under the following circumstances:

-- Under a "free look," the amount returned will not include the

amount of any Credits.

-- Any Credits payable on Purchase Payments made within the 12 months before the date of death will be recovered.

-- The amount available under the medically-related surrender portion of the Annuity will not include the amount of any Credits payable on Purchase Payments made within 12 months of the date the Annuitant first became eligible for the medically-related surrender.

Contingent Deferred Sales Charges assessed on XTra Credit variable annuities are longer and higher than those assessed on other American Skandia variable annuities. Such charges and other terms tend to be higher or more restrictive for annuities that offer bonus credits.

Variable annuities are issued by American Skandia Life Assurance Corporation and distributed by American Skandia Marketing, Incorporated. 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.