American Skandia - market timing

Skandia is aware that certain practices engaged in by several entities
in the mutual fund and variable annuity industries in the United States
have come under the scrutiny of the US Securities and Exchange
Commission, the New York Attorney General's Office and certain other US
regulators. Specifically, several US mutual fund companies and
broker/dealers have been accused of allowing trading in mutual funds
after ordinary time cutoffs (generally, 4 p.m. New York time) and
allowing frequent trading, or "market timing," in mutual funds, which
may be harmful to the interests of other unit holders.

Although Skandia is no longer active in the mutual fund or variable
annuity industries in the United States, it has been previously
disclosed that Skandia has undertaken certain obligations to indemnify
Prudential Financial in connection with events that occurred prior to
the sale of American Skandia to Prudential.

While no allegations of wrongdoing have been made by regulators against
American Skandia, Prudential Financial has disclosed that it, like many
others in the industry, has received formal requests for information
from regulators, including the US Securities and Exchange Commission,
the State of New York Attorney General's Office and other regulators, in
connection with issues relating to the purchase and sale of mutual fund
units, which includes American Skandia's mutual fund business.
Prudential Financial has also disclosed that American Skandia has
received a formal request for information from the New York Attorney
General's Office in connection with its variable annuity business.
Prudential Financial is cooperating with all such inquiries and is
conducting its own internal review. Skandia will be kept apprised of
developments regarding these inquiries to the extent that they relate to
American Skandia pre-sale to Prudential Financial.

Prudential Financial has disclosed that these inquiries could lead to
regulatory proceedings that could result in fines or other sanctions. In
addition, it may become subject to civil litigation related to these
matters. Because of the complexity and scope of the internal review and
the uncertainties of potential regulatory proceedings and civil
litigation, Prudential Financial is unable to estimate American
Skandia's potential exposure, if any, at this time. Accordingly, while
Skandia may be subject to indemnification claims from Prudential
Financial related to any fines, sanctions, cost of remediation or
litigation that may arise out of these inquiries in relation to American
Skandia pre-sale to Prudential Financial, it is not currently possible
to estimate Skandia's potential exposure.

In a related matter, Skandia has learned that a purported class action
lawsuit filed last week in the US District Court for the Southern
District of New York, purporting to represent shareholders of the
INVESCO family of mutual funds against the managers of the INVESCO
family of mutual funds, has also named American Skandia as a defendant.
The complaint alleges that customers of American Skandia were permitted
to engage in late trading and/or market timing in the INVESCO mutual
funds. Skandia has not yet had the opportunity to review this case, but
intends to participate in the defence of this case if Prudential
Financial notifies Skandia that it will seek indemnification in the
event it incurs expenses in connection with this matter.

For further information, please contact:
Jan-Mikael Bexhed, EVP and General Counsel, phone,+ 46-8-788 25 00
Gunilla Svensson, Press Manager, phone,+46-8-788 25 00