Prudential Annuities Announces Next Innovation in Guaranteed Protection Optional Benefits

Prudential Annuities, the domestic annuity business for Prudential Financial, Inc. (NYSE: PRU) announced today it has launched Highest Daily Lifetime Fivesm, a variable annuity optional living benefit that guarantees, subject to the program rules, a five percent income stream every year for life based on five percent annual compounded growth on the highest daily protected value. The newest innovation in the Lifetime Fivesm suite of benefits, HD Lifetime Five offers investors the opportunity to increase their annuities’ income potential every day the market is open—up to 250 times a year (for the first 10 years or until the first withdrawal if earlier). The award-winning Lifetime Five was introduced in March of 2005 as the industry’s groundbreaking guaranteed-withdrawals-for life living benefit. HD Lifetime Five is available on most annuity products issued by American Skandia Life Assurance Corporation and Pruco Life Insurance Company, all Prudential Financial Companies. HD Lifetime Five is currently available in most states. "Introducing Highest Daily Lifetime Five on the heels of our tremendously successful Lifetime Five offering demonstrates our commitment to developing intelligent solutions for helping grow and protect retirement savings,” says David Odenath, president of Prudential Annuities. "We know that in addition to the guarantees associated with annuity income benefits, asset preservation is a major concern for many investors. Highest Daily Lifetime Five offers upside opportunity and a model designed to help preserve an investor’s account value in market downturns.” Key Features of Highest Daily Lifetime Five include: Daily Step Ups Before Withdrawals Begin: HD Lifetime Five gives investors the opportunity to increase their Protected Withdrawal Value (the basis for guaranteed lifetime income) every day the market is open for trading—generally more than 250 times a year. The Protected Withdrawal Value is determined by comparing every daily account value growing at an annual 5% compounded rate of return for the first 10 years from benefit election or until an investor’s first withdrawal, whichever is sooner. Guaranteed lifetime income: HD Lifetime Five offers a lifetime annual income stream equal to five percent of the Protected Withdrawal Value, with no annuitization required. (Annuitization at a particular age may be required by the terms of the base annuity.) Proprietary risk management model: HD Lifetime Five incorporates the fundamentals of a proven proprietary risk management model that monitors an investor’s account daily, and, only if specified by the model, systematically transfers amounts between the variable investment portfolio and an account that earns a fixed rate of interest. Post-withdrawal step-up opportunities: After withdrawals begin, HD Lifetime Five provides annual opportunities for increased income based on the account’s highest quarterly value. Withdrawals under the program are subject to all of the terms and conditions of the annuity, including any withdrawal charges that may apply. Withdrawals of taxable amounts will be subject to ordinary income tax, and if taken prior to age 59 ½, a ten percent federal tax penalty may apply. "No two investors are alike, and HD Lifetime Five, coupled with our other leading optional living benefits, provides investors approaching or in The Retirement Red ZoneR—the five years before and after retirement—with a full array of products designed to help solve their diverse retirement planning needs,” says Jac Herschler, vice president of Marketing for Prudential Annuities. Variable annuities offer a wide range of professionally managed investment options, guaranteed death benefits and a variety of payout options including guaranteed income for life. Annuity contracts contain exclusions, limitations, reductions of benefits and terms for keeping them in force. The Highest Daily Lifetime Five Income Benefit optional rider has an annual cost of 0.60%, which is assessed against the daily assets of the variable subaccounts and as a reduction to the interest rate credited to the Benefit Fixed Rate Account (the fixed option required in connection with the benefit). This is in addition to the cost of the basic annuity. The guarantees are contingent upon the claims-paying ability of the issuing company. And, the annuity's contract value is subject to market fluctuation, investment risk and possible loss of principal. Prudential Financial companies, with approximately $586 billion in total assets under management as of September 30, 2006, 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, asset 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. Variable annuities issued by American Skandia Life Assurance Corporation, Shelton, CT, or Pruco Life Insurance Company located in Newark, N.J. American Skandia Marketing, Incorporated (with respect to the American Skandia annuities) and Prudential Investment Management Services LLC (with respect to the Pruco Life annuities), distributors (members SIPC). All are Prudential Financial companies. Each is solely responsible for it financial condition and contractual obligations. RID-WB-(11/04) and RID-JLT-(03/06). Investors should consider the contract and underlying portfolios’ investment objectives, risks, charges and expenses carefully before investing. This and other important information is contained in the prospectuses, which can be obtained from your financial professional. You should read the prospectuses carefully before investing. IFS-A126721 Ed. 11/2006