Putnam Allstate Advisor Launches Retirement IncomeStrategies.

Business Editors

BOSTON--(BUSINESS WIRE)--Nov. 9, 2000

Putnam Allstate Advisor, the variable annuity product of Putnam Investments and Allstate Life Insurance Company, a member of the Allstate Financial Group, is now offering Retirement Income Strategies, an innovative program

Under Retirement Income Strategies, investors who are in the income phase of their investment contracts can set the terms of their payment schedules and choose several methods of beneficiary protection.

Jane Mancini, managing director and head of insurance products for Putnam Retail Management, said: "There has been a real reluctance on the part of the financial advisor to recommend annuitization to their clients. Annuitization has offered little flexibility or control over the investment, since most annuity products have focused solely on the accumulation phase. Retirement Income Strategies is designed to put control of the investment back in the hands of the financial advisor and the customer."

"We're adding Retirement Income Strategies to our entire Putnam Allstate Advisor variable annuity product line to let our existing annuity owners have access to these retirement income plans," said Brent Hamann, general manager, Allstate Distributors, L.L.C.

Retirement Income Strategies gives investors five main strategies from which to choose:

    --  Income with access to their money. Generally, once an annuity
        owner has elected to receive income over a guaranteed payment
        period and wants to access his or her money, the owner can
        only do so by withdrawing the entire income amount. Under this
        strategy, Retirement Income Strategies gives annuity owners
        the ability to make partial withdrawals during a guaranteed
        payment period when they need extra money.

    --  Ability to modify their income payments. With most annuities,
        once an owner has chosen a guaranteed payment period, he or
        she is locked into that payment schedule. This
        modified-payment strategy allows the owner to extend or
        shorten the guaranteed payment period, depending on his or her
        needs. The change will automatically decrease or increase
        income payments accordingly.

    --  Dependable income with inflation protection. The dependable
        income strategy gives the variable-annuity investor the option
        of level monthly income. A contract holder who chooses this
        option will get the same monthly payment over the course of a
        year; the level of payment is recalculated every 12 months.
        This option allows an investor to remain invested in the
        market - to provide a hedge against inflation - while
        receiving the assurance of a steady flow of income.

    --  Income with beneficiary protection. These income plans offer
        beneficiary protection for those who choose a life or joint
        life income stream. If the annuity owner dies before receiving
        the total amount annuitized, his or her beneficiaries will
        receive the remainder either in a lump sum or in installments.
        There are four death benefit options to choose from.

    --  Retirement income guarantee. Putnam Allstate Advisor since its
        inception in 1999 has offered the Retirement Income Guarantee
        (RIG). Contract holders who use RIG can choose from two
        riders:

        1)  The first rider guarantees that income will be based on
            100 percent of the payments made into the contract,
            adjusted for distributions. This option is available at a
            cost of 0.05 percent of the income base.

        2)  The second rider guarantees an income base of the greater
            of the following: a 5 percent annual increase in the total
            investment or the maximum anniversary value of the
            portfolio. This rider is available at a cost of 0.30
            percent of the income base.

About Putnam: Founded in 1937, Putnam Investments is one of the nation's oldest and largest money management firms. Putnam manages $400 billion for 13 million individual shareholder accounts and 1,000 institutional clients. Putnam has offices in Boston, London and Tokyo.

About Allstate: The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held personal lines insurance company. The company's personal property and casualty business provides insurance for more than 14 million households and has approximately 13,000 Allstate agents in the U.S. and Canada. The company also provides personal lines insurance products and services, such as Allstate and Encompass Insurance, through independent agents. Allstate Financial Group is comprised of the nation's 17th largest life insurance business as well as businesses that market annuities, savings, and financial services products through licensed financial professionals. Allstate maintains a web site at www.allstate.com.

For information about Putnam Allstate Advisor, or to receive a prospectus, consult a financial advisor or call Putnam at 1-800-225-1581.