Prudential Financial Incorporates Mexican Life Insurance Company; Prudential Financial, Inc. Set to Establish a Mexican Financial Group Including Mutual Funds, Insurance and Eventually a Bank Platform.

MEXICO CITY -- Arthur Ryan, Chairman and CEO of Prudential Financial Inc., announced today it has incorporated a new life insurance company in Mexico. The new company, Prudential Seguros Mexico, S.A., will sell protection-oriented life insurance products through highly trained professionals, known as Life Planners(sm). The Life Planners will assist consumers in making the right decisions about the insurance needs to help protect their families.

Prudential also announced it is pursuing a license through the Ministry of Finance to establish a Mexican financial group that will include the company's new insurance business, mutual fund company, and, eventually, a bank, which is pending regulatory approval at this time.

"Mexico has great potential for Prudential. Its solid economy, growing regional and global influence and democratic political system makes it an attractive market for all our operations here," said Ryan. "The addition of our insurance offerings and expanded investment capabilities will better position us to provide consumers with the best products and services to grow and protect their wealth.

Prudential Seguros Mexico S.A.

The new insurance company, which is pending final regulatory approval, is expected to begin operations in the third quarter of 2006 and the first branch offices will be located in Mexico City; with subsequent expansion to Guadalajara and Monterrey. Prudential Seguros Mexico, S.A. has already created 30 new jobs in Mexico and will add more than 50 home and field office positions in 2006.

The new chief executive officer of Prudential Seguros Mexico S.A. is Yuji Tanaka, who explained that the subsidiary will provide Mexican consumers with the highest quality protection-oriented life insurance products.

"Prudential Seguros will introduce high quality customer-tailored products to the Mexico market," said Tanaka. "We are confident that Mexican consumers will respond positively to our knowledgeable sales representatives, known as Life Planners. Our Life Planners specialize in helping consumers better understand their life insurance needs," said Tanaka.

He added that in comparison to most global markets, penetration of life insurance in Mexico is very low. Prudential will aim to provide information on the security and peace of mind that protection-oriented life insurance can provide. Sales will be targeted to medium and upper income families.

Prudential Seguros also announced that it is recruiting for its initial sales management team. This group of 30-40 men and women will be instrumental in helping to develop the company's sales. Appropriate candidates will have experienced high levels of success in their previous careers, but must have no prior life insurance experience.

Prudential Bank and Financial Group

Once approved, the new financial group will include an insurance company, Prudential Seguros Mexico S.A., a mutual fund company, Prudential Financial Operadora de Sociedades de Inversion (PF Operadora), and a new banking platform. The Afore XXI joint venture, Prudential Relocation and Prudential Real Estate Investors - Latin America will not be part of the financial group. Once the company receives the proper approvals, which is expected in the second business quarter, the lead executive for the bank will be Manuel Somoza, president and CEO of PF Operadora.

The focus of the bank will be to continue providing products and services for the Mexican investment community, including retail and institutional clients. The bank will not offer commercial banking services nor cash products, such as checking accounts.

"We will differentiate our business from the competition by dedicating ourselves to the specialty of growing and protecting our clients' wealth," said Somoza.

Chairman Arthur Ryan, Prudential Financial Vice Chairman Rodger Lawson, and Prudential business executives from the United States also held meetings with Secretary of Treasury Francisco Gil Diaz; Bank of Mexico vice governor Everado Elizondo Almaguer, the president of the National Banking and Securities Commission Jonathan Davis, and the president of the National Insurance and Bonding Commission Manuel Aguilera.

Prudential Financial Operadora de Sociedades de Inversion, headquartered in Mexico City, is one of the largest independent investment management companies in Mexico; based on assets under management as of December 31, 2005. Prudential Financial Operadora de Sociedades de Inversion manages nine mutual funds, eight fixed income funds and one index fund.

Afore XXI, a private pension manager in Mexico, is a joint venture between Prudential Financial and Instituto Mexicano del Seguro Social (IMSS), the government agency responsible for providing health and retirement benefits for Mexican workers and their families. Afore XXI has more than 2.2 million customers and a distribution network that covers 31 states throughout Mexico with its 45 branch offices. Since partnering with Prudential, Afore XXI has reached US$3.2 billion assets under management as of December 31, 2005.

Prudential Real Estate Investors (PREI) is the real estate investment and advisory business of Prudential Financial, Inc. PREI is comprised of fund management centers in Parsippany, N.J.; Atlanta, Ga.; Munich; London and Singapore, is supported by a network of local offices throughout the world. Its operating units offer a broad range of investment opportunities and investment management services in the United States, Europe, Asia and Latin America. As of December 31, 2005, PREI had more than $20 billion in net assets under management.

Prudential Relocation in Mexico is a strategic component of the company's global expansion and in its fourth year of operation in Mexico. This business unit provides services to large multi-national corporations rendering services in Mexico and Latin America region. Last year, PRURELOMEX provided over 1,200 relocation related services to more than 300 executives and their families moving in this region.

Prudential Financial companies, with approximately $532 billion in total assets under management as of December 31, 2005, serve individual and institutional customers worldwide and include The Prudential Insurance Company of America, one of the largest life insurance companies in the United States. These companies offer a variety of products and services, including life insurance, mutual funds, annuities, pension and retirement related services and administration, assets management, banking and trust services, real estate brokerage franchises, relocation services and, through a joint venture, retail securities brokerage services. For more information, visit www.prudential.com