4th Quarter Producer Web Conference October 2, 2002 We’ve tried to piece together a lot of information and we’re hoping you could tell us what else we’re missing within the analysis or where you would like to see a focus going forward. Presented By: Ken Cochrane, Senior Vice President, National Sales Peter Welsh, Regional Vice President

AdviceSolutionsSM - Agenda Background/Advice Frameworks Product Availability Cost/Plan Requirements Marketing Plan Launch Plan AdviceSolutions Walk Through Q&A

AdviceSolutionsSM - Background AdviceSolutions is a web-based investment modeling and retirement planning tool powered by Advice Frameworks. Acquired by AEGON in 2001 Range of simulation capabilities

AdviceSolutionsSM - Background Business Week, Money Magazine, and Yahoo Internet Life Currently, Advice Frameworks also powers the Retiretek retirement planning tool for Diversified Investment Advisors. Part of comprehensive employee retirement planning tools including Retirement Planning Assessment and Asset Allocation tool

AdviceSolutionsSM - Available Products Transamerica Director Series I - Signature Services1 Underwriting guidelines of $200,000 in first-year weighted assets Transamerica Partner Series I - TPA Services1 Underwriting guidelines of $100,000 in first-year weighted assets Transamerica Advisor Series I2 Underwriting guidelines of $1,000,000 in first-year assets 1 Contract Form No. TGP-439-194 is a group annuity issued by Transamerica Life Insurance and Annuity Company, Charlotte, NC, and offered through Transamerica Retirement Services. Contract form and number may vary, and this product may not be available in all jurisdictions. Not available in New York. 2 Transamerica Advisor Series I is administered by Transamerica Securities Sales Corporation and distributed by Diversified Investors Securities Corporation.

AdviceSolutionsSM - Cost/Plan Requirements No additional costs The plan must have at least 1 fund in each of the following asset classes: Cash Equivalent Bond Large/Mid Cap Blend or Large/Mid Cap Growth and Large/Mid Cap Value

AdviceSolutionsSM Marketing Plan Marketing Materials Proposal - Included 9/3 Plan Highlights - Included 9/12 All Brochures - Updated 10/1 - 10/15 Demo Site will be available to all producers on www.TA-Retirement.com by 10/1.

AdviceSolutionsSM Brochure

AdviceSolutionsSM Launch Plan Setup starting on 10/1/02 There is no additional contract for the plan sponsor to sign. They just need to check the box on the checklist to request for setup. Participants will be able to access the advice feature within 5 days of request for set-up. Participant access - www.TA-Retirement.com. Existing Clients At launch, we will not pro-actively roll out this service to existing clients. Clients who request this feature will be treated on a case by case basis. Producers/Field reps should contact their client service reps.

AdviceSolutionsSM - Walk Through Participants’ retirement plan information is passed to AdviceSolutions each time they log in, so they don’t have to type in information such as name and retirement account balance and fund allocation.

AdviceSolutionsSM - Walk Through The participant must enter their salary information and they can also enter other sources of income to get a more complete analysis.

AdviceSolutionsSM - Walk Through Participants can use this feature to model the impact of a broad range of future life events on the future value of retirement assets.

AdviceSolutionsSM - Walk Through Life Summary Timeline illustrates the income, expenses, retirement data and the potential life expectancy.

AdviceSolutionsSM - Walk Through The participants have a chance to enter outside assets for a more complete analysis.

AdviceSolutionsSM - Walk Through The goals pages allow the participant to enter their own goals or use our pre-set defaults.

AdviceSolutionsSM - Walk Through The level of experience selector will dictate how many scenarios the user will see and be able to accept. Advanced will see 21, Intermediate will see 5, and Beginner will see 1.

AdviceSolutionsSM - Walk Through The participant will have an opportunity to change the variables that would effect the retirement goals. Variables include deferral percentage, save more to outside assets, etc.

AdviceSolutionsSM - Walk Through This page indicates what the risks are for the participant and what percentage chance the participant has to reach their goal.

AdviceSolutionsSM - Walk Through The asset buildup and drawdown page shows a participant how his assets are built up and then depleted.

AdviceSolutionsSM - Walk Through The recommendation page shows the participants’ current allocations and where AdviceSolutions recommends them to be. The analysis is based on asset class level, then pro-rated between the funds available in that asset class.

AdviceSolutionsSM - Walk Through The action plan page will show the participants’ retirement goals, projected income and whether or not they will have a surplus or shortfall.

AdviceSolutionsSM - Walk Through Action plans to meet the goals are outlined step by step for the participants so they will be able to take the necessary action.

AdviceSolutionsSM - Walk Through AdviceSolutions reiterates all the assumptions to the participants to make sure they did not enter wrong information.

AdviceSolutionsSM - Walk Through This is the final page of the AdviceSolutions module. At this point, the participant can either log-off or start another session.

AdviceSolutionsSM - Customer Service AdviceSolutions offers collaborative browsing where an Advice Frameworks representative will be able to see the same thing as the participant and then walk them through each step. The representatives will be able to answer questions about the tool and the concepts that are presented in AdviceSolutions. Participants are instructed to send all plan related questions to their plan sponsors.

Retirement Planning Assessment

Retirement Planning Assessment Retirement Planning Assessments are designed to allow eligible employees to understand what their retirement goals should be, whether they are on course to achieve those goals, and different actions they can take to try to achieve their goals.

Selling in the 4th Quarter 2002

No Better Time than Now Negative Market Returns Need to be proactive Service Providers are consolidating/downsizing Employees have never been more uncertain Back to the basics

Plan Design Discrimination Test Issues Fully enjoying benefits of EGTRRA Allocate money in the most effective manner, i.e. Last Day Requirement Safe Harbor options

401(k) Discrimination Testing Options HCEs want to take advantage of 401(k) Plan Each HCE defers 7% of pay Each NHCE defers 0% of pay After discrimination testing, plan fails by 5% points Bottom Up QNECs Assumptions Eligibility: Immediate Each HCE defers 7% of pay Each NHCE defers 3% of pay After running the discrimination test, we find that the plan fails by 2% points i.e. - the ADP for the NHCEs is 3% and it needs to be 5%

Bottom-Up QNECs Illustration Eligible Avg Trad. Pre- Employee Income Deferral ADP% ADP QNEC 2002 2002 HCE 1 $157,142 $11,000 7.00% HCE 2 157,142 11,000 7.00% HCE 3 157,142 11,000 7.00% HCE 4 157,142 11,000 7.00% 7% NHCE 1 60,000 0 0.00% 5% 0% 0% NHCE 2 55,000 0 0.00% 5% 0% 0% NHCE 3 50,000 0 0.00% 5% 0% 0% NHCE 4 45,000 0 0.00% 5% 0% 0% NHCE 5 40,000 0 0.00% 5% 0% 0% NHCE 6 35,000 0 0.00% 5% 0% 0% NHCE 7 30,000 0 0.00% 5% 0% 0% NHCE 8 25,000 0 0.00% 5% 0% 0% NHCE 9 20,000 0 0.00% 5% 25% 0% NHCE 10 5,000* 0 0.00% 0% 5% 25% 50% ADP Test 3% x 1.25 = 3.75% 3% x 2 (2% max) = 5% NHCE total % has to reach 50% to give average of at least 5% to pass 2x test Traditional QNEC An across the board QNEC of 2% for each NHCE would achieve this goal but the cost would be $7,300. Pick & Choose Giving the 2 lowest paid NHCEs a 10% QNEC, the cost would be $2,500. Bottom-Up A QNEC of 20% for the lowest paid NHCE, would cost only $1,000. *(termination date 5/01/01) $18,250 $6,250 $2,500

Safe Harbor with NCP “How does it work?” Use 3% non-elective Safe Harbor No ADP testing HCEs can get $40,000 under 401(k) and NCP combo Same 3% can be used for top-heavy and NCP tests 401(k) helps pass NCP tests 100% vesting and employee notice required on safe harbor Safe Harbor with NCP “How Does it Work?”

NCP with Non-Elective Safe Harbor For Plan Year Ending December 31, 2002 Total Covered Income: $965,000 Total Profit Sharing: $36,000 Total 401(k) Deferral: $ 54,950 Total 401(k) Match: $ 0 Total Safe Harbor: $ 28,950 Safe Harbor with NCP “How Does it Work?” * Meets 3:1 ratio gateway under proposed NCP regulations

Investments Ongoing responsibility to review Multiple Fund Family offerings provide greater choice Suggest review of ERISA 404(c) compliance and Investment Policy Statement Transamerica’s Investment Monitor

Top-Notch Investment Managers * Note: Contract form number TGP-439-194 is a group annuity contract issued by Transamerica Life Insurance and Annuity Company, Charlotte, NC, and offered through Transamerica Retirement Services. Form number may vary, and this product may not be available in all jurisdictions. Not available in New York.

Investment Monitor Transamerica Retirement Services provides The Investment Monitor as a valuable informational resource to assist in meeting Plan Participants needs and fulfilling due diligence responsibilities as a Plan Sponsor.

Service Many companies are cutting service capabilities during these tough times Need to tailor service to client profile Introduction of Sponsor Connect TRS Field Service Personnel for Larger Clients Transamerica Partner Series combines our investment contract with local TPA

Sarbanes-Oxley Act of 2002 Blackout Notice Requirement 30 Day Written Notice Consecutive 3 day period required $100/day/affected participant fine Prohibition on Insider Trading of Employer Securities During Defined Contribution Blackout Periods Applies to publicly traded securities only Increased ERISA Criminal Penalties DOL to issue interim final rules necessary to carry out provision of this Act by 10/13/02. Blackout rules effective 1/27/03

Employee Communications Confused employees are looking for assistance from Plan Sponsor Retirement Planning Assessment Online Investment Advice Enrollment Meetings Customized Enrollment Communications TRS new website

Visit www.TA-Retirement.com

Interactive Participant Web Site

Interactive Participant Web Site

Interactive Participant Web Site

Interactive Participant Web Site PAT PARTICIPANT

Interactive Participant Web Site Question & Answer Session