© 2008 Transamerica Corporation. All rights reserved. 1 The First Quarter in Review 3 3 Source: Transamerica Investment Management, “Manager Commentary-First Quarter 2008.” © 2008 Transamerica Corporation. All rights reserved.TRS 3413ECON-0508

© 2008 Transamerica Corporation. All rights reserved. 2 First Quarter Highlights Bond Market –Lehman Brothers Aggregate Bond Index increased by 2.17% Stock Market –S&P 500 Index decreased by -9.44% *Please see slide 8 for source and disclosures. © 2008 Transamerica Corporation. All rights reserved.

3 Annual Stock Market Returns vs. Long-Term Averages © 2008 Transamerica Corporation. All rights reserved. Long-term average is approximately 10% not the 20% to the 30% returns we experienced in the late 90s, nor the negative returns we experienced the years prior to *Please see slide 8 for source and disclosures. The 50 year long-term stock average is approximately 10%

© 2008 Transamerica Corporation. All rights reserved. 4 Stock Index Returns © 2008 Transamerica Corporation. All rights reserved. *Please see slide 8 for source and disclosures.

© 2008 Transamerica Corporation. All rights reserved. 5 Lehman Brothers Aggregate Bond Index Annual Returns vs. Long-Term Averages Long-term historical average for bonds is approximately 7%, higher than what we’re seeing today. © 2008 Transamerica Corporation. All rights reserved. *Please see slide 9 for source and disclosures.

© 2008 Transamerica Corporation. All rights reserved. 6 Bond Index Returns More Conservative More Aggressive *Please see slide 9 for source and disclosures. © 2008 Transamerica Corporation. All rights reserved.

7 Outlook: Source: Transamerica Investment Management, “Second Quarter 2008 Outlook." Economic growth is likely to remain slow Recession is unlikely even though consumer confidence is low by historical standards Inflation remains remarkably contained Fed decreases in rates are unlikely to persist and may be smaller © 2008 Transamerica Corporation. All rights reserved.TRS 3413ECON-0508

© 2008 Transamerica Corporation. All rights reserved. 8 Disclosures Slide 2 Source: Morningstar, Inc. Data as of March 31, Lehman Brothers’ Lehman Brothers Aggregate Bond Index is comprised of securities from Lehman Brothers Government/Corporate Bond Index, Mortgage-Backed Securities Index, and the Asset-Backed Securities Index. Standard & Poor’s S&P 500 stock market index is comprised of 500 leading companies in leading industries of the U.S. economy. Transamerica Retirement Services is not affiliated with Lehman Brothers or Standard & Poor’s. One cannot invest directly in an index. An index is unmanaged and does not take into account the fees and expenses associated with an actively managed fund, so performance may differ. Past performance is not a guarantee of future performance. Slide 3 Source: Morningstar, Inc. The annual stock market returns shown are represented by the S&P 500 Index and are for the 10-year period from March 1998-March Standard & Poor’s S&P 500 stock market index is comprised of 500 leading companies in leading industries of the U.S. economy. Transamerica Retirement Services is not affiliated with Standard & Poor’s or Morningstar, Inc. The long-term performance quoted for stocks is based on the 50-year average annual total return of the S&P 500 Index obtained from Russell/Mellon Analytical Services and Morningstar, Inc. from Transamerica Retirement Services is not affiliated with Russell/Mellon Analytical Services or Morningstar, Inc. One cannot invest directly in an index. An index is unmanaged and does not take into account the fees and expenses associated with an actively managed fund, so performance may differ. Past performance is not a guarantee of future performance. Slide 4 Source: Morningstar, Inc. Data as of March 31, The indices used to represent each investment style are as follows: Value – Russell 1000® Value Index; Growth – Russell 1000® Growth Index; Large-cap – Russell 1000® Index; and Small-cap – Russell 2000® Index. Russell Investments’ Russell 1000® Value Index is comprised of the 500 most value- oriented stock companies in the Russell 1000® Index, Russell 1000® Growth Index is comprised of the 500 most growth- oriented stock companies in the Russell 1000® Index, Russell 1000® Index is comprised of the largest 1,000 stock companies in the Russell 3000® Index, and Russell 2000® Index is comprised of 2,000 small company stocks. Transamerica Retirement Services is not affiliated with Russell Investments. One cannot invest directly in an index. An index is unmanaged and does not take into account the fees and expenses associated with an actively managed fund, so performance may differ. Past performance is not a guarantee of future performance.

© 2008 Transamerica Corporation. All rights reserved. 9 Disclosures Slide 5 Source: Morningstar, Inc. The annual bond market returns shown are represented by the Lehman Brothers Aggregate Bond Index and are for the 10-year period from March 1998-March Lehman Brothers’ Lehman Brothers Aggregate Bond Index is comprised of securities from Lehman Brothers Government/Corporate Bond Index, Mortgage-Backed Securities Index, and the Asset-Backed Securities Index. Transamerica Retirement Services is not affiliated with Morningstar, Inc. or Lehman Brothers. The long-term performance quoted for bonds is based on the 50-year average annual total return of the Intermediate- Term Government Bonds obtained from the Stocks, Bonds, Bills and Inflation® 2001 Yearbook, Ibbotson Associates ( ) and the Lehman Brothers Aggregate Bond Index obtained from Morningstar, Inc. ( ). Transamerica Retirement Services is not affiliated with Ibbotson Associates or Morningstar, Inc. One cannot invest directly in an index. An index is unmanaged and does not take into account the fees and expenses associated with an actively managed fund, so performance may differ. Past performance is not a guarantee of future performance. Slide 6 Source: Morningstar, Inc. Data as of March 31, The indices used to represent each investment style are as follows: 3-Month Treasury – Citigroup 3-Month Treasury Bill Index; Short-term Government Bond – Merrill Lynch 1-3 Year Treasury Index; Intermediate Government Bond – Lehman Brothers Intermediate Government Bond Index; Investment Grade Bond – Lehman Brothers Aggregate Bond Index; and High Yield Bond – Credit Suisse First Boston Global High Yield Index. Citigroup’s Citigroup 3-Month U.S. Treasury Bill Index is comprised of U.S. Treasury bills with a remaining maturity of three months. Merrill Lynch’s Merrill Lynch 1-3 Year Treasury Index is comprised of Treasury notes and bonds with maturities of 1-3 years. Lehman Brothers’ Lehman Brothers Intermediate Government Bond Index is comprised of all bonds covered by the Lehman Brothers Government Bond Index with maturities between one and 9.99 years. Credit Suisse First Boston’s Credit Suisse First Boston Global High Yield Index is comprised of issues rated BB and below by S&P or Moody’s with par amounts greater than $75 million. Transamerica Retirement Services is not affiliated with Citigroup, Merrill Lynch, Lehman Brothers, or Credit Suisse First Boston. One cannot invest directly in an index. An index is unmanaged and does not take into account the fees and expenses associated with an actively managed fund, so performance may differ. Past performance is not a guarantee of future performance.

© 2008 Transamerica Corporation. All rights reserved. 10 A JOURNEY MADE SIMPLE. ® RETIREMENT © 2008 Transamerica Corporation. All rights reserved. FOR EDUCATIONAL USE ONLY TRS 3413ECON-0508 Transamerica Retirement Services (“Transamerica”), a marketing unit of Transamerica Financial Life Insurance Company (“TFLIC”), 4 Manhattanville Road, Purchase, New York 10577, and Transamerica Life Insurance Company (“TLIC”), 4333 Edgewood Road NE, Cedar Rapids, Iowa 52499, and other TFLIC and TLIC affiliates, specializes in the promotion of retirement plan products and services. TFLIC is not authorized and does not do business in the following jurisdictions: Guam, Puerto Rico, and the U.S. Virgin Islands. TLIC is not authorized in New York and does not do business in New York. TRANSAMERICA. MASTER RETIREMENT® POWER CHOICE FREEDOM