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American Skandia Adds Sector, Asset Allocation Funds; Profunds to Manage New Portfolios; Line-up Sustains Multi-Manager Style Created by American Skandia

SHELTON, Conn.-- Jan. 23, 2001--American Skandia Life Assurance Corporation has added three index portfolios and eight new sector portfolios to be managed by ProFund Advisors LLC.

The new portfolios continue building on American Skandia's Investment Manager Selection Process, adding additional breadth and depth to the Special Equity line-up, which comprises more than 35 percent of the 60 variable investment portfolios available.

During the past few years, the interest among the investing public in specific sectors has skyrocketed. The addition of the ProFunds sector portfolios at American Skandia adds to the ability of the financial professional to more effectively respond to the wants and needs of customers, said Christian Thwaites, Senior Vice President and Chairman of American Skandia's Investment Committee.

The new index portfolios are:

ProFund VP Bull Plus Portfolio

Objective: Provide investment returns that correspond to 150% of the daily performance of the S&P 500(R) Index.

ProFund VP Bear Portfolio

Objective: Provide investment returns that are inversely correlated to the daily performance of S&P 500(R) Index.

ProFund VP OTC Portfolio

Objective: Provide investment returns that correspond to the daily performance of the NASDAQ 100(TM) Index.

In addition, American Skandia has introduced an enhanced ProFunds Sector Portfolio line-up in its variable annuities.(a) These are:

ProFund VP Biotechnology Portfolio

Objective: Seek daily investment results that correspond to the performance of the Dow Jones U.S. Biotechnology Sector Index.

ProFund VP Real Estate Portfolio

Objective: Seek daily investment results that correspond to the performance of the Dow Jones U.S. Real Estate Sector Index.

ProFund VP Energy Portfolio

Objective: Seek daily investment results that correspond to the performance of the Dow Jones U.S. Energy Sector Index.

ProFund VP Technology Portfolio

Objective: Seek daily investment results that correspond to the performance of the Dow Jones U.S. Technology Sector Index.

ProFund VP Financial Portfolio

Objective: Seek daily investment results that correspond to the performance of the Dow Jones U.S. Financial Sector Index.

ProFund VP Telecommunications Portfolio

Objective: Seek daily investment results that correspond to the performance of the Dow Jones U.S. Telecommunications Sector Index.

ProFund VP Healthcare Portfolio

Objective: Seek daily investment results that correspond to the performance of the Dow Jones U.S. Healthcare Sector Index.

ProFund VP Utilities Portfolio

Objective: Seek daily investment results that correspond to the performance of the Dow Jones U.S. Utilities Sector Index.

Michael Sapir, CEO of ProFunds, said, "This strategic relationship with American Skandia -- a world-class leader in the insurance product industry -- enhances our commitment to provide innovative index products that allow investors to respond to changing market conditions."

ProFunds is excited to offer on the American Skandia platform, portfolios focused on such attractive sectors as biotechnology, utilities and energy and indexed to the Dow Jones U.S. Sector indexes. We believe the Dow Jones indexes are the purest and most representative sector indexes available today.

American Skandia will continue to offer three existing portfolios managed by ProFunds -- the Profund VP UltraOTC Portfolio, the ProFund VP UltraSmall-Cap Portfolio and the ProFund VP Europe 30 Portfolio.

Thwaites noted that American Skandia launched sector investment options in the Fall of 1999, and has seen them prove "remarkably popular" with investors who want to customize their asset allocation portfolios. To take advantage of its growth in this market, American Skandia recently appointed Ed Oberholtzer Vice President to lead its marketing efforts in Investment Advisory Services.

We are committed to the third party investment advisors and currently receive over 10% of our sales from this burgeoning market, Thwaites said. "We are delighted to work more closely with ProFunds and extend our product offerings. The new offerings enhance the competitiveness of our variable annuity investment option line-up. We are excited about the potential for growth with the 13 sector portfolios we now offer."

(a) These portfolios are not available through American Skandia's Life Insurance products - AS Trophy, AS Life Champion, AS Life Horizon and AS Life Focus.

Variable annuities, variable life insurance and qualified plans 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. 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.