New VA Product from American Skandia Offers Clients Shorter CDSC Period; AS APEX Also Helps Financial Professionals Tap Into Fee-Based Compensation.

Business Editors

SHELTON, Conn.--(BUSINESS WIRE)--Feb. 26, 2001

As the financial services industry continues to move toward fee-based and level load compensation structures, American Skandia Life Assurance Corporation has introduced AS APEX, a variable annuity designed to address the evolving needs of financial professionals and their clients.

AS APEX carries a four-year surrender charge period that is based on the date of issue of the variable annuity contract. American Skandia's APEX product differs from other variable annuities currently offered in the U.S. that have seven-or eight-year surrender periods and apply these surrender periods separately to each investment in the annuity contract.

"As a leader in the Variable Annuity industry, American Skandia prides itself in offering the broadest array of variable annuity designs and features," said Jac Herschler, American Skandia's Vice President of Variable Annuity Marketing. "The short four-year surrender charge period, based solely on the date the annuity contract is issued, allows the AS APEX variable annuity to respond to growing demand on the part of financial professionals and investors for more liquid variable annuity products."

AS APEX allows the owner of the variable annuity contract to make additional payments to their annuity without extending the period that surrender charges would apply in the event of withdrawal or surrender of the annuity.

Christian Thwaites, Senior Vice President of American Skandia Marketing, Incorporated, said: "We expect AS APEX to be a major contributor to our sales in 2001. Financial professionals are looking for more flexible products and a mid-level offering allows customers to make ongoing contributions without renewing their surrender schedule."

AS APEX, American Skandia's third major product innovation since October 2000, extends American Skandia's broad line-up of deferred and immediate variable annuity products and is currently available in 37 states. Like the company's other variable annuity products, AS APEX offers world-class investment option choices derived from American Skandia's investment manager selection process.

Variable annuities, variable life insurance and qualified plans 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.