American Skandia Brings XTra Credit Six to Investors in New York; Flexible Product Complements...

Business Editors

SHELTON, Conn.--(BUSINESS WIRE)--July 22, 2002

American Skandia Life Assurance Corporation ("ASLAC") is launching XTra Credit(SM) SIX NY, a deferred variable annuity that offers a 6% up-front bonus, to help investors jumpstart their retirement savings.

The XTra Credit SIX NY variable annuity features a 0.65% Mortality and Expense Risk and Administration Charge, in addition to a 1% Distribution Charge in years 1-10, and 0% in the years thereafter. This feature is unique to XTra Credit SIX, which also has a ten-year contingent deferred sales charge (CDSC) schedule. The amount of the CDSC decreases over time, beginning at 9% charged for withdrawals taken in the first year.

"XTra Credit SIX has been extremely well received in other states where it has been available for the last several months. It provides an excellent opportunity for investors who have a longer term investment horizon and want to give their retirement savings a boost, and now New York investors will be able to benefit from it as well," said Jac Herschler, American Skandia's Vice President of Variable Annuity Marketing.

The addition of XTra Credit SIX NY follows the recent launch of two other New York products, XTra Credit(SM) FOUR NY and APEX(SM) II NY. This brings a complete lineup of variable annuity products for sale by Investment Professionals in the State of New York.

Variable annuities and variable life insurance are issued by American Skandia Life Assurance Corporation and distributed by American Skandia Marketing, Inc. 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, and details concerning the XTra Credit and its possible recovery. The amount of any Credits applied to your Account Value can be recovered by American Skandia if you elect to "free-look" at your Annuity. The amount returned to you will not include any credits. Please read the prospectus 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. 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 tend to be higher and/or more restrictive for annuities that offer bonus credits.