IFS-Axxxx Ed. 02/2005 Invest Like the Professionals… Asset Allocation and Diversification Are Key IFS-A Ed. 3/2006

Smart Investing Begins With An Investment Plan  One that reflects your unique needs and goals  The time you have to achieve them  Your attitude toward risk. Step One: Review your current portfolio Step Two: Determine your future needs. Step Three: Make a plan and stick to your plan.

Invest Like the Professionals Time-tested strategies  Asset allocation  Diversification

Asset Allocation Is the Primary Determinant of Total Portfolio Volatility Source: Brinson, Singer, and Beebower (1991)

Which Asset Allocation Model Is Accurate? A. Conservative? B. Moderate? C. Aggressive? Blue – Bonds Purple – Stocks

Answer: They Are All Correct! Your personal answer is based on your individual risk/reward profile Standard Deviation (Risk) Expected Return Stocks Cash Moderate Conservative Growth Standard Deviation represents the volatility or risk of an asset. It measures how scattered actual returns are around the average return or mean over a period of time. The greater the degree of dispersion, the greater the risk associated with the asset. Blue – Bonds Purple – Stocks

Emotional Investing Is a Common Mistake Everyone wants to “buy low and sell high,” but most investors do the opposite Source: Investment Company Institue. The S&P 500 Index is an unmanaged, weighted index of 500 U.S. stocks providing a broad indicator of price movement. Investors cannot invest directly in an index. Index performance is not representative of the performance of a specific security. Past performance is no guarantee of future results.

So How Do You Build An Asset Allocation Strategy? You need the right mix of stocks and bonds Regular Monitoring and adjusting is necessary to maintain your desired allocation Periodic Rebalancing

Past performance is no guarantee of future results. Trying to Time the Market Can Lead to Long-Term Underperformance

Market Leadership Changes from Year to Year Benefits of Asset Allocation It’s difficult to predict which style within the stock or bond markets will lead the way in a given year. Diversification increases the chance of having at least a portion of your assets in the “right place” assets in the “right place” at the right time. Source: Lipper, Inc. and Prudential Financial. Government bonds and Treasury Bills are guaranteed by the U.S. Government and, if held to maturity, offer a fixed rate of return and fixed principal value. Stocks offer growth potential, but fluctuate more than other investments. The prices of small company stocks are generally more volatile than those of large company stocks. Investing in foreign/international securities presents certain unique risks not associated with domestic investments, such as currency fluctuation and political/economic changes. Past performance is not a guarantee of future results. Individual investor results will vary. See Glossary of Indices for index descriptions. Diversification seeks to balance (as in an investment portfolio) defensively by dividing funds among securities of different industries or of different classes. Corporate bonds are subject to credit risk, interest rate risk, and market risk. An investment cannot be made directly into an index. Past performance in not indicative of future results. Diversified Portfolio 15% Large Value15% Large Growth 10% Small Value10% Small Growth 10% International40% Int.Gov/Credit

Market Leadership Changes Year to Year Disclosure Large Cap – The S&P 500 Stock Index is a market value-weighted index of 500 stocks that are traded on the NYSE, AMEX, and NASDAQ. Large Cap Growth and Large Cap Value – Indexes that measure the performance of the growth and value styles of investing in large-cap U.S. stocks. The indexes are constructed by dividing the stocks in the S&P 500 Index according to price-to-book ratios. Mid-Cap ® – Measures the performance of the 800 smallest companies in the Russell 1000 ® Index, which represent approximately 26% of the total market capitalization of the Russell 1000 ® Index. Small Cap – The Russell 2000 ® is a market value-weighted index of the 2,000 smallest stocks in the broad-market Russell 3000 ® Index. These securities are traded on the NYSE, AMEX, and NASDAQ. Small Cap Growth and Small Cap Value - Indexes that measure the performance of growth and value styles of investing in small-cap U.S. stocks. The Value index contains those Russell 2000 ® securities with a less-than-average growth orientation, while the Growth index contains those securities with a greater-than- average growth orientation. International – A Morgan Stanley Capital International index that is designed to measure the performance of the developed country global stock markets of Europe, Australasia, and the Far East. Fixed Income - This Index includes U.S. government, corporate, mortgage-backed securities, and asset- backed securities.

Benefits of Diversification Benefits of Asset Allocation Source: Lipper, Inc. and Prudential Financial. Government bonds and Treasury Bills are guaranteed by the U.S. Government and, if held to maturity, offer a fixed rate of return and fixed principal value. Stocks offer growth potential, but fluctuate more than other investments. The prices of small company stocks are generally more volatile than those of large company stocks. Investing in foreign/international securities presents certain unique risks not associated with domestic investments, such as currency fluctuation and political/economic changes. Past performance is not a guarantee of future results. Individual investor results will vary. See Glossary of Indices for index descriptions. Diversification seeks to balance (as in an investment portfolio) defensively by dividing funds among securities of different industries or of different classes. Corporate bonds are subject to credit risk, interest rate risk, and market risk. An investment cannot be made directly into an index. Past performance in not indicative of future results. It’s difficult to predict which style within the stock or bond markets will lead the way in a given year. Diversification increases the chance of having at least a portion of your assets in the “right place” assets in the “right place” at the right time. Diversified Portfolio 15% Large Value15% Large Growth 10% Small Value10% Small Growth 10% International40% Int.Gov/Credit

Introducing JennisonDryden Asset Allocation Funds One step to a diversified long-term investment plan  Diversified allocation strategies designed in consultation with Ibbotson Associates  Covers key asset classes  Multiple style funds  Leading asset managers  Day-to day management and portfolio rebalancing by Quantitative Management Associates Ibbotson Associates is not a Prudential Financial company.

Source: Ibbotson Associates Allocation Strategies Designed by Ibbotson Associates Founded in 1977, Ibbotson is well known throughout the investment industry as an experienced and objective provider of asset allocation products.

Allocation Strategies Designed by Ibbotson Associates  Asset class modeling  Portfolio design  Quarterly review of fund style consistency  Annual review of asset class modeling

The Efficient Frontier Strategy works by using a mathematical formula, which takes the historical total return of a portfolio of securities as well as their volatility, as measured by its standard deviation, and plots them to determine the precise blend which would have provided the highest level of overall return with the lowest degree of volatility for the period measured. Choose a Portfolio That’s Right for You Risk Return JennisonDryden Moderate Allocation Fund JennisonDryden Conservative Allocation Fund JennisonDryden Growth Allocation Fund 40% 60% Stocks Bonds 35% 65% 90% 10%

Conservative Allocation Fund Stocks Cash Moderate Conservative Growth 60% Fixed Income/40% Equity Actual percentages may fluctuate due to market changes. The manager may also vary the allocation ranges for each underlying fund of a portfolio at any time if the manager believes that doing so will better enable the portfolio to pursue its investment objective. Please see the prospectus for allowable ranges. U.S. Large Cap Core 5% U.S. Large Cap Growth 8% U.S. Large Cap Value 11% Small to Mid 6% International Equity 10% High Yield 6% Intermediate Bond 27% ST Bond 20% Ultra Short 7% Dryden International Equity10% Jennison U.S. Emerging Gr2% Jennison Value8% Fixed Income Dryden Ultra Short7% Dryden Government Income27% Dryden High Yield6% Dryden Short-Term Corporate20% Dryden Large-Cap Core Underlying Fund Target At 12/31/2005 Equity 5% Jennison 20/20 Focus Jennison Equity Opportunity Jennison Growth 5% 2% 8%

Moderate Allocation Fund 65% Equity/35% Fixed Income Equity Dryden Large-Cap Core7% Dryden Small-Cap Core3% Jennison 20/208% Jennison Equity Opportunity3% Jennison Growth13% Dryden International Equity17% Jennison U.S. Emerging Gr2% Jennison Value12% Fixed Income Dryden Ultra Short3% Dryden Government Income15% Dryden High Yield5% Dryden Short-Term Corporate12% Stocks Cash Moderate Conservative Growth U.S. Large-Cap Value 17% Small to Mid 12% International Equity 17% High Yield 5% Intermediate Govt Bond 15% ST Bond 12% Ultra Short Bond 3% Large-Cap Core 7% U.S. Large-Cap Growth 12% Actual percentages may fluctuate due to market changes. The manager may also vary the allocation ranges for each underlying fund of a portfolio at any time if the manager believes that doing so will better enable the portfolio to pursue its investment objective. Please see the prospectus for allowable ranges. Underlying Fund Target At 12/31/2005

Growth Allocation Fund 90% Equity /10% Fixed Income Stocks Cash Moderate Conservative Growth U.S. Large-Cap Value 20% Small to Mid 20% International Equity 25% High Yield 2% Intermediate Govt Bond 8% Large-Cap Core 9% U.S. Large-Cap Growth 16% Equity Dryden Large-Cap Core9% Dryden Small-Cap Core7% Jennison 20/2010% Jennison Equity Opportunity4% Jennison Growth18% Dryden International Equity25% Jennison U.S. Emerging Gr4% Jennison Value 13% Fixed Income Dryden Total Return Bond10% Underlying Fund Target At 12/31/2005 Actual percentages may fluctuate due to market changes. The manager may also vary the allocation ranges for each underlying fund of a portfolio at any time if the manager believes that doing so will better enable the portfolio to pursue its investment objective. Please see the prospectus for allowable ranges.

Fund Disclosures Investors should keep in mind that the Funds will not be diversified for the purposes of the Investment Company Act of Investment in a nondiversified fund involves greater risks than a diversified investment because a loss resulting from a particular security will have a greater impact on the fund’s overall return. The Funds may not be appropriate for all investors, nor should they be considered a complete investment program. There is no assurance that the Funds’ investment objectives will be achieved. They may invest in small- and mid-cap stocks, which may have limited marketability and may be subject to more abrupt or erratic movements than larger-capitalization stocks. The Funds may engage in the following nonprincipal strategies. The Funds may invest in foreign securities, which are subject to the risk of currency fluctuation and the impact of political, social, and economic change. Noninvestment-grade debt securities, commonly referred to as high yield or “junk” bonds, may be subject to greater market fluctuations and risk of loss of income and principal than securities in higher-rating categories. The Funds also may trade their portfolio securities actively and frequently, resulting in an annual portfolio turnover rate of up to approximately 100%. High portfolio turnover can result in higher costs, which may affect Fund performance. The Funds also may invest in derivative securities, which have their own risks. These risks may result in greater share price volatility.

Three Leading Asset Managers Prudential Fixed Income is a division of Prudential Investment Management, Inc. (PIM). Jennison Associates, Quantitative Management Associates, and PIM are registered investment advisers and Prudential Financial companies.  Our products feature three respected asset managers: o Jennison Associates o Quantitative Management Associates o Prudential Fixed Income  Our success is a result of: o In-depth proprietary research o Disciplined, time-tested investment approach o Extensive industry and sector expertise  We offer a broad spectrum of investment products: o Core building blocks in key asset classes and styles o Strong specialty product line o Asset allocation funds that simplify the investment decision JennisonDryden, from Prudential Financial, brings institutional asset management capabilities to retail investors.

Investment Teams 1 Prudential Investment Management, Inc. or one of its predecessor organizations has been managing proprietary fixed income portfolios since 1875 and portfolios for institutional clients since Credit analysts only. Year Founded Investment Professionals (Portfolio Managers, traders, analysts) Portfolio Managers Analysts Ph.D.s CFAs Portfolio Manager Experience (average) Analyst Experience (average) Locations Investment Process Funds Managed* $72 billion years 12 years New York, Boston Bottom Up 15 $46 billion years 13 years Newark Quantitative Enhanced/Team 6 6 $170 billion years 3 12 years 4 Newark, Singapore, London Relative Value, Research and Risk Management 15 3 Jennison Associates DRYDEN Prudential Fixed Income 1 Quantitative Mgmt Associates JENNISON ASSET MANAGERS AT A GLANCE Assets Under Management (Retail / Institutional as of 12/31/2005)

The Need for Rebalancing What happens over time to a portfolio that starts off 50% equity and 50% fixed income? If no rebalancing takes place, market fluctuations may have a significant impact on portfolio holdings. After 20 years the portfolio is two-thirds equity and one-third fixed income. Asset Mix Drift – 12/31/1985 Through 12/31/2005 Source: Thompson Financial, as of 12/31/05. Equity returns reflect performance of the S&P 500 Index The S&P 500 Index is an unmanaged, weighted index of 500 U.S. stocks, providing a broad indicator of price movement in stocks. Fixed Income returns reflect performance of Lehman Brothers Aggregate Bond Index. The Lehman Brothers Aggregate Bond Index is an unmanaged index composed of securities from the Lehman Brothers Government/Corporate Bond Index, Mortgage-Backed Securities Index, and the Asset-Backed Securities Index. Total return comprises price appreciation/depreciation and income as a percentage of the original investment. Indexes are rebalanced monthly by market capitalization. Index performance is not representative of the performance of a specific security. Investors cannot invest directly in an index. Past performance is not indicative of future results.

Why Diversification and Rebalancing Are Important Consider the following two long-term strategies for investing $200,000 over a 20-year period (1984–2005) Source: Prudential Investments, using Wisenberger. For the purpose of this illustration, the following indexes were used: S&P/BARRA 500 Value, Russell 2000 Growth, Russell 2000 Value, MSCI EAFE, and Lehman Brothers Aggregate Bond. Investors cannot buy or invest directly into any of these indexes, and the indexes do not represent the performance of the JennisonDryden Asset Allocation Funds. The six asset classes used here are: Large Cap Growth, Large Cap Value, Small Cap Growth, Small Cap Value, International, and Fixed Income. Past performance is no guarantee of future results. Invests $10,000 into top- performing market segment at the end of each year. Strategy 1 Invests $10,000 equally in six different market segments at the end of each year, and rebalances the portfolio each year so it remains equally diversified among the six market segments. Strategy 2

Keeping Your Asset Allocation on Track JennisonDryden Asset Allocation Funds Automatic Rebalancing- we do the work for you.  Quantitative Management Associates periodically rebalances the three asset class portfolios to bring them back to their original allocations

Performance Since Inception (3/30/04) 1 YearAverage Annual Performance through 12/31/ SEC Standardized Returns (including sales charge) Morningstar Conservative Allocation average JD Conservative Allocation Fund (A) SEC Standardized Returns (including sales charge) Morningstar Conservative Allocation average JD Moderate Allocation Fund (A) SEC Standardized Returns (including sales charge) Morningstar Conservative Allocation average JD Growth Allocation Fund (A) Past performance does not guarantee future results and current performance may be lower or higher than the past performance data quoted. The investment return and principal value will fluctuate and shares when sold may be worth more or less than the original cost. For the most recent month-end performance go to Maximum sales charge is 5.5%

What JennisonDryden Asset Allocation Funds Offer You  Immediate and consistent diversification  Asset management expertise of the JennisonDryden fund family  Three funds for differing risk profiles  Automatic portfolio rebalancing  Simplicity—one investment, one NAV, one 1099  Accessibility—investment minimums as low as $1,000

You Have Needs  Secure retirement  College education for children or grandchildren  New home  Growing/protecting your nest egg We can help J ennisonDryden Asset Allocation Funds

How Do You Get Started  Complete an Asset Allocation Questionnaire  Based on your answers, a Financial Professional can help identify an asset allocation model that is appropriate for your investment objectives, risk tolerance, and time horizon

Disclosures For more information about the JennisonDryden Asset Allocation Funds, call your financial professional for a free prospectus. Consider the Funds’ investment objectives, risks, charges, and expenses carefully before investing. The prospectus contains this and other information about the Fund. Please read the prospectus carefully before investing. Shares of the JennisonDryden Asset Allocation Funds are distributed by Prudential Investment Management Services LLC (PIMS), member SIPC. Jennison Associates and PIMS are Prudential Financial companies. Indirectly through subsidiaries, Prudential Financial, Inc. owns 38% and Wachovia Corporation owns 62% of Wachovia Securities LLC. JennisonDryden is a registered trademark of The Prudential Insurance Company of America. Mutual Funds: ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY, MAY LOSE VALUE, AND ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE. JennisonDryden is a registered trademark of The Prudential Insurance Company of America.