American Skandia introduces lower fees for variable annuity buyers; Launched new AXIOM variable annuity on May 1.

SHELTON, Conn.--(BUSINESS WIRE)--May 24, 1995--The more you pay to acquire an investment, the less of your money can be put to work up front. This is a fundamental principle of investing and why smart investors shop for low fees and low sales charges. But what if for an additional annual fee, investors could obtain ongoing professional consulting, defer taxes on all earnings, switch easily among multiple investment managers without tax consequence and guarantee their full principal in the event of their death until age 70? Starting May 1, 1995, American Skandia's new AXIOM Tax-Deferred Variable Annuity offers all of these benefits and at an ongoing annuity cost well below the variable annuity industry average.

With the introduction of AXIOM, American Skandia's Executive Vice President and Chief Marketing Officer Wade Dokken believes it's time to take a second look at variable annuity comparisons. "AXIOM offers 21 investment options," explains Dokken. "The options are leading equity, fixed-income, international and money market portfolios managed by such well-known load and no-load investment managers as Scudder, Janus, Federated and T. Rowe Price." AXIOM is unique because it also offers highly competitive fixed rates. "AXIOM satisfied the toughest requirements of astute variable annuity investors," confides Dokken. "It is a low cost product that provides recognized money managers and competitive fixed rates, all while under the guidance of a financial professional who can customize the product to a client's needs."

"The truth is," adds Dokken, "we believe AXIOM offers more for less." According to VARDS, it is priced competitively with annuities marketed directly which do not provide customized investment services. And the average variable annuity which does offer personalized services costs nearly 35 percent more on an annual basis.

For financial professionals, a key benefit of AXIOM is Skandia's ASSESS software system, used by the financial professional to evaluate the client's risk tolerances and goals and to match these with a customized asset allocation into specific portfolios. As market conditions or investors' needs change, financial professionals can use AssetMix support services to rebalance client allocations and move money from one investment option to another with no tax consequence. "Cost-conscious investors will enjoy the convenience of having some of the world's best money managers linked within one-tax deferred annuity contract," Dokken states.

Finally, AXIOM has a built-in guarantee that, up to age 70, no less than 100 percent of what an investor originally paid into AXIOM, less withdrawals, will be returned to a named beneficiary upon death, no matter what the actual market value of the investment is on that day. The guarantee is backed by the claims paying ability of American Skandia. Dokken says that AXIOM also offers a series of fixed-rate accounts for times when investors may want to be out of the stock and bond markets. These accounts lock in competitive rates for either 1, 2, 3, 5, 7 or 10 years. Of course, a potential penalty for early withdrawal from a filed account on a variable annuity may be applicable.

"As the old axiom goes, `you get what you pay for.' As of May 1," adds Dokken, "we feel you'll get far more."

American Skandia is a dynamic insurance and financial services company headquartered in Shelton, Conn., and consistently one of the fastest-growing providers of variable annuities in the United States. A subsidiary of Skandia Insurance Company Ltd., which was founded in 1855, American Skandia is part of the Assurance and Financial Services Division of Skandia, based in Stockholm, Sweden, with operations in over 10 countries. Skandia is a key provider of innovative unit-linked savings products and is the third-largest producer of this type of product in the world. American Skandia currently has over $3 billion under management.

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The Axiom annuity has a 1 percent ongoing insurance charge, and early withdrawals may be subject to a contingent deferred sales charge. Also, as with any annuity, withdrawals prior to age 59 1/2 will be subject to a 10 percent IRS penalty tax. Investment earnings and principal value of a variable investment may fluctuate and thus the investment may be more or less than the original cost. Early withdrawal from the fixed account may be subject to a market value adjustment. The Axiom annuity is issued by American Skandia Life Assurance Corp. and distributed by American Skandia Marketing Inc., both of 1 Corporate Dr., Shelton, Conn. 06484. Please call 1-800-752-6342 if you would like an annuity prospectus which contains detailed information regarding all fees and charges. Please read the prospectus carefully before investing or sending any money.

CONTACT: Thompson Becker International

Tad Gillespie or Ann Becker, 508/698-0448