Supplement to Prospectuses Dated May 1, 2006 Supplement Dated August 14, 2006

Supplement to Prospectuses Dated May 1, 2006 Supplement dated August 14, 2006

Supplement dated August 14, 2006 to the May 1, 2006 Prospectuses for the following annuity products: American Skandia Advisor Plan III, American Skandia APEX® II, American Skandia XTra Credit Six, American Skandia LifeVest® II, Advisors Choice ®2000, Optimum, Optimum Four and Optimum Plus, as previously supplemented (the “Prospectuses”).

This Supplement should be read and retained with the current Prospectus for your annuity contract issued by American Skandia Life Assurance Corporation (“American Skandia”). This Supplement is intended to update certain information in the Prospectus for the variable annuity you own, and is not intended to be a prospectus or offer for any other variable annuity listed here that you do not own. If you would like another copy of the current Prospectus, please contact American Skandia at 1-800-752-6342.

We are issuing this supplement to each Prospectus in order to: (1) describe certain changes regarding the step-up feature of the Lifetime Five Income Benefit and the Spousal Lifetime Five Income Benefit; (2) reflect a change to the non-fundamental investment policies of one American Skandia Trust (“AST”) portfolio; (3) reflect the removal of a sub-advisor for one AST portfolio and the addition of sub-advisors for two AST Portfolios; and (4) modify the disclosure concerning certain payment arrangements. All of these changes apply to each Prospectus and will be effective on or about August 14, 2006, unless specifically stated otherwise.

1. Administrative Changes to Certain Optional Benefits

Lifetime Five Income Benefit

The following prospectus revisions reflect, for elections of this benefit on or after March 20, 2006, a reduced waiting period (i.e. from 3 years to 1 year) for the step-up of certain values associated with the Lifetime Five Income Benefit and a change to the threshold requirement associated with the Auto Step-Up feature of the benefit:

A. In the section of each Prospectus entitled “Living Benefit Programs”, sub-section “Lifetime Five Income Benefit (Lifetime Five)”, under the heading “Key Feature – Protected Withdrawal Value” the following replaces the second and third paragraphs:

You may elect to step-up your Protected Withdrawal Value if, due to positive market performance, your Account Value is greater than the Protected Withdrawal Value.

If you elected the Lifetime Five program on or after March 20, 2006:

• you are eligible to step-up the Protected Withdrawal Value on or after the 1st anniversary of the first withdrawal under the Lifetime Five program

• the Protected Withdrawal Value can be stepped up again on or after the 1st anniversary of the preceding step-up

If you elected the Lifetime Five program prior to March 20, 2006 and that original election remains in effect:

• you are eligible to step-up the Protected Withdrawal Value on or after the 5th anniversary of the first withdrawal under the Lifetime Five program

• the Protected Withdrawal Value can be stepped up again on or after the 5th anniversary of the preceding step-up

In either scenario (i.e., elections before or after March 20, 2006) if you elect to step-up the Protected Withdrawal Value under the program, and on the date you elect to step-up, the charges under the Lifetime Five program have changed for new purchasers, your program may be subject to the new charge at the time of step-up. Upon election of the step-up, we increase the Protected Withdrawal Value to be equal to the then current Account Value. For example, assume your initial Protected Withdrawal Value was $100,000 and you have made cumulative withdrawals of $40,000, reducing the Protected Withdrawal Value to $60,000. On the date you are eligible to step-up the Protected Withdrawal Value, your Account Value is equal to $75,000. You could elect to step-up the Protected Withdrawal Value to $75,000 on the date you are eligible. If your current Annual Income Amount and Annual Withdrawal Amount are less than they would be if we did not reflect the step-up in Protected Withdrawal Value, then we will increase these amounts to reflect the step-up as described below.

An optional automatic step-up (“Auto Step-Up”) feature is available for this benefit. This feature may be elected at the time the benefit is elected or at any time while the benefit is in force.

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If you elected the Lifetime Five program on or after March 20, 2006 and have also elected the Auto Step-Up feature:

• the first Auto Step-Up opportunity will occur on the 1st Annuity Anniversary that is at least one year after the later of (1) the date of the first withdrawal under the Lifetime Five program or (2) the most recent step-up

• your Protected Withdrawal Value will only be stepped-up if 5% of the Account Value is greater than the Annual Income Amount by any amount

• if at the time of the first Auto Step-Up opportunity, 5% of the Account Value is not greater than the Annual Income Amount, an Auto Step-Up opportunity will occur on each successive Annuity Anniversary until a step-up occurs

• once a step-up occurs, the next Auto Step-Up opportunity will occur on the 1st Annuity Anniversary that is at least one year after the most recent step-up

If you elected the Lifetime Five program prior to March 20, 2006 and have also elected the Auto Step-Up feature:

• the first Auto Step-Up opportunity will occur on the Annuity Anniversary that is at least 5 years after the later of (1) the date of the first withdrawal under the Lifetime Five Program benefit or (2) the most recent step-up

• your Protected Withdrawal Value will only be stepped-up if 5% of the Account Value is greater than the Annual Income Amount by 5% or more

• if at the time of the first Auto Step-Up opportunity, 5% of the Account Value does not exceed the Annual Income Amount by 5% or more, an Auto Step-Up opportunity will occur on each successive Annuity Anniversary until a step-up occurs

• once a step-up occurs, the next Auto Step-Up opportunity will occur on the Annuity Anniversary that is at least 5 years after the most recent step-up

In either scenario (i.e., elections before or after March 20, 2006), if on the date that we implement an Auto Step-Up to your Protected Withdrawal Value, the charge for Lifetime Five has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Subject to our rules and restrictions, you will still be permitted to manually step-up the Protected Withdrawal Value even if you elect the Auto Step-Up feature.

B. “Example 3. Step-up of the Protected Withdrawal Value” under the “Lifetime Five Income Benefit (Lifetime Five)” section of each Prospectus is replaced with the following hypothetical example. In addition, in the assumptions that precede the examples, we delete item 5, which states that “the Account Value on February 1, 2010 is equal to $280,000”.

Example 3. Step-up of the Protected Withdrawal Value

If the Annual Income Amount ($13,250) is withdrawn each year starting on March 1, 2006 for a period of 3 years, the Protected Withdrawal Value on February 1, 2012 would be reduced to $225,250 {$265,000 – ($13,250 × 3)}. If a step-up is elected on February 1, 2012, and the Account Value on February 1, 2012 is $280,000, then the following values would result:

• Protected Withdrawal Value = Account Value on February 1, 2012 = $280,000

• Annual Income Amount is equal to the greater of the current Annual Income Amount or 5% of the stepped up Protected Withdrawal Value. Current Annual Income Amount is $13,250. 5% of the stepped up Protected Withdrawal Value is 5% of $280,000, which is $14,000. Therefore, the Annual Income Amount is increased to $14,000.

• Annual Withdrawal Amount is equal to the greater of the current Annual Withdrawal Amount or 7% of the stepped up Protected Withdrawal Value. Current Annual Withdrawal Amount is $18,550. 7% of the stepped-up Protected Withdrawal Value is 7% of $280,000, which is $19,600. Therefore the Annual Withdrawal Amount is increased to $19,600.

• Because the Issue Date and Effective Date of Lifetime Five for this example is prior to March 20, 2006, if the step-up request on February 1, 2012 was due to the election of the auto step-up feature, we would first check to see if an auto step-up should occur by checking to see if 5% of the Account Value exceeds the Annual Income Amount by 5% or more. 5% of the Account Value is equal to 5% of $280,000, which is $14,000. 5% of the Annual Income Amount ($13,250) is $662.50, which added to the Annual Income 2

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Amount is $13,912.50. Since 5% of the Account Value is greater than $13,912.50, the step-up would still occur in this scenario, and all of the values would be increased as indicated above. Had the Issue Date and Effective Date of the Lifetime Five benefit been on or after March 20, 2006, the step-up would still occur because 5% of the Account Value is greater than the Annual Income Amount.

Spousal Lifetime Five Income Benefit

The following prospectus revisions reflect a reduced waiting period (i.e. from 3 years to 1 year) for the step-up of the Annual Income Amount and a change to the threshold requirement associated with the Auto Step-Up feature:

A. In the section of each Prospectus entitled “Living Benefit Programs”, sub-section “Spousal Lifetime Five Income Benefit (Spousal Lifetime Five)”, under the heading “Key Feature – Annual Income Amount under the Spousal Life Income Benefit” the following replaces the second and third paragraphs:

You may elect to step-up your Annual Income Amount if, due to positive market performance, 5% of your Account Value is greater than the Annual Income Amount. You are eligible to step-up the Annual Income Amount on or after the 1st anniversary of the first withdrawal under the Spousal Lifetime Five program. The Annual Income Amount can be stepped up again on or after the 1st anniversary of the preceding step-up. If you elect to step-up the Annual Income Amount under the program, and on the date you elect to step-up, the charges under the Spousal Lifetime Five program have changed for new purchasers, your program may be subject to the new charge at the time of such step-up. When you elect a step-up, your Annual Income Amount increases to equal 5% of your Account Value after the step-up. Your Annual Income Amount also increases if you make additional Purchase Payments. The amount of the increase is equal to 5% of any additional Purchase Payments. Any increase will be added to your Annual Income Amount beginning on the day that the step-up is effective or the Purchase Payment is made. A determination of whether you have exceeded your Annual Income Amount is made at the time of each withdrawal; therefore a subsequent increase in the Annual Income Amount will not offset the effect of a withdrawal that exceeded the Annual Income Amount at the time the withdrawal was made.

An optional automatic step-up (“Auto Step-Up”) feature is available for this benefit. This feature may be elected at the time the benefit is elected or at any time while the benefit is in force. If you elect this feature, the first Auto Step-Up opportunity will occur on the 1st Annuity Anniversary that is at least one year after the later of (1) the date of the first withdrawal under the Spousal Lifetime Five program or (2) the most recent step-up. At this time, your Annual Income Amount will be stepped-up if 5% of your Account Value is greater than the Annual Income Amount by any amount. If 5% of the Account Value does not exceed the Annual Income Amount, then an Auto Step-Up opportunity will occur on each successive Annuity Anniversary until a step-up occurs. Once a step-up occurs, the next Auto Step-Up opportunity will occur on the 1st Annuity Anniversary that is at least 1 year after the most recent step- up. If, on the date that we implement an Auto Step-Up to your Annual Income Amount, the charge for Spousal Lifetime Five has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Subject to our rules and restrictions, you will still be permitted to manually step-up the Annual Income Amount even if you elect the Auto Step-Up feature.

B. “Example 3. Step-up of the Annual Income Amount” under the “Spousal Lifetime Five Income Benefit (Spousal Lifetime Five)” section of each Prospectus is replaced with the following:

Example 3. Step-up of the Annual Income Amount

If a step-up of the Annual Income Amount is requested on February 1, 2010 or the Auto Step-Up feature was elected, the step-up would occur because 5% of the Account Value, which is $14,000 (5% of $280,000), is greater than the Annual Income Amount of $13,250. The new Annual Income Amount will be equal to $14,000.

2. Investment Policy Change

As a result of an investment policy change to the AST Goldman Sachs Small-Cap Value Portfolio, effective August 25, 2006, the chart in the Prospectus in the section entitled “Investment Options/What are the Investment Objectives and Policies of the Portfolios?” is revised as follows:

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INVESTMENT OPTIONS

WHAT ARE THE INVESTMENT OBJECTIVES AND POLICIES OF THE PORTFOLIOS?

PORTFOLIO STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/ TYPE SUB-ADVISOR AST Goldman Sachs Small-Cap Value Portfolio: seeks long-term capital appreciation. The Goldman Sachs Asset Portfolio will seek its objective through investments primarily in equity securities that are Management, L.P. believed to be undervalued in the marketplace. The Portfolio primarily seeks companies that are small-sized, based on the value of their outstanding stock. The Portfolio will have a non- Small Cap fundamental policy to invest, under normal circumstances, at least 80% of the value of its assets Value in small capitalization companies. The 80% investment requirement applies at the time the Portfolio invests its assets. The Portfolio generally defines small capitalization companies as stocks of companies with market capitalizations that are within the range of the Russell 2000 Value Index at the time of purchase.

3. Sub-advisor Changes/Additions

a. Effective June 16, 2006, Goldman Sachs Asset Management, L.P. (GSAM) is no longer a sub-advisor of the AST High Yield Portfolio. To reflect this change, the chart in the Prospectus in the section entitled “Investment Options/What are the Investment Objectives and Policies of the Portfolios?” GSAM is deleted from the column entitled “Portfolio Advisor/Sub- Advisor” for the Portfolio.

b. Effective on or about November 13, 2006, Marsico Capital Management, LLC (Marsico) will be added as a sub-advisor to the AST William Blair International Growth Portfolio and the name of the Portfolio will be changed to the “AST International Growth Portfolio”. As a result, the chart in the Prospectus in the section entitled “Investment Options/What are the Investment Objectives and Policies of the Portfolios?” is revised to reflect these changes.

c. Effective on or about November 13, 2006, Thornburg Investment Management, Inc. (Thornburg) will be added as a sub- advisor to the AST LSV International Value Portfolio and the name of the Portfolio will be changed to the “AST International Value Portfolio”. As a result, the chart in the Prospectus in the section entitled “Investment Options/What are the Investment Objectives and Policies of the Portfolios?” is revised to reflect these changes.

4. Service Fees

In the section of each Prospectus entitled “General Information”, sub-section “What Is The Structure Of The Underlying Funds?”, under the heading “Service Fees Payable to American Skandia,” we replace the second paragraph that begins “[I]n addition, the investment adviser, sub-adviser or distributor . . .” with the following:

In addition, an investment adviser, sub-adviser or distributor of the underlying Portfolios may also compensate us by providing reimbursement, defraying the costs of, or paying directly for, among other things, marketing and/or administrative services and/or other services they provide in connection with the Annuity. These services may include, but are not limited to: sponsoring or co- sponsoring various promotional, educational or marketing meetings and seminars attended by distributors, wholesalers, and/or broker dealer firms' registered representatives, and creating marketing material discussing the contract, available options, and underlying Portfolios. The amounts paid depend on the nature of the meetings, the number of meetings attended by the adviser, sub-adviser, or distributor, the number of participants and attendees at the meetings, the costs expected to be incurred, and the level of the adviser's, sub-adviser's or distributor's participation. These payments or reimbursements may not be offered by all advisers, sub-advisers, or distributor and the amounts of such payments may vary between and among each adviser, sub-adviser and distributor depending on their respective participation.

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Supplement dated June 30, 2006 to the May 1, 2006 Prospectuses for the following annuity products: American Skandia Advisor Plan III, American Skandia XTra Credit SIX, American Skandia LifeVest® II, American Skandia APEX II, Advisors Choice ®2000, Optimum, Optimum Plus, Optimum Four, American Skandia Variable Adjustable Immediate Annuity and American Skandia Variable Immediate Annuity (the “Prospectuses”).

This Supplement should be read and retained with the current Prospectus for your annuity contract issued by American Skandia Life Assurance Corporation (“American Skandia”). This Supplement is intended to update certain information in the Prospectus for the variable or immediate annuity you own, and is not intended to be a prospectus or offer for any other variable or immediate annuity listed here that you do not own. If you would like another copy of the current Prospectus, please contact American Skandia at 1-800-752-6342.

We are issuing this supplement to describe a change to the above-referenced Prospectuses. This change applies to each Prospectus and will be effective on or about June 30, 2006.

The section of the Prospectus entitled "May I Give My Financial Professional Permission to Forward Transaction Instructions?" is replaced with the following:

Yes. Subject to our rules, your Financial Professional may forward instructions regarding the allocation of your Account Value, and request financial transactions involving investment options. If your Financial Professional has this authority, we deem that all transactions that are directed by your Financial Professional with respect to your Annuity have been authorized by you. You must contact us immediately if and when you revoke such authority. We will not be responsible for acting on instructions from your Financial Professional until we receive notification of the revocation of such person's authority. We may also suspend, cancel or limit these privileges at any time. We will notify you if we do.

OA074SUP5-0706 CORESUP2 Supplement dated May 5, 2006 to the Prospectuses dated May 1, 2006

This Supplement updates the Prospectuses for the following annuity products: American Skandia Advisor Plan III, American Skandia XTra Credit SIX, American Skandia LifeVest® II, American Skandia APEX® II, Advisors Choice ®2000, American Skandia Variable Adjustable Immediate Annuity, and American Skandia Variable Immediate Annuity (the “Prospectuses”).

We are issuing this Supplement to update each above-referenced Prospectus as follows:

Footnote 18 to the table entitled “Underlying Mutual Fund Portfolio Annual Expenses” in the section of each Prospectus entitled “Summary of Contract Fees and Charges” is replaced with the following to reflect new fee waiver and expense reimbursement arrangements with respect to the ProFunds VP:

ProFund Advisors LLC has contractually agreed to waive Investment Advisory and Management Services Fees and to reimburse other expenses to the extent Total Annual Portfolio Operating Expenses, as a percentage of average daily net assets, exceed 1.63% (1.33% for ProFund VP U.S. Government Plus) for the period May 1, 2006 through December 31, 2006. After such date, any of the expense limitation may be terminated or revised. Amounts contractually waived or reimbursed in a particular fiscal year may be recouped by ProFund Advisors LLC within three years of the waiver or reimbursement to the extent that recoupment will not cause the ProFund VPs’ expenses to exceed any expense limitation in place at that time.

ProFund Advisors performs certain management services, including client support and other administrative services, for the ProFunds VP under a Management Services Agreement for which it is entitled to receive annual fees equal to 0.15% of the average daily net assets of each ProFund VP. Effective May 1, 2006, until further notice, but at least until December 31, 2006, ProFund Advisors will voluntarily waive a portion of such fee such that it will receive annual fees equal to 0.10% of the average daily net assets of each ProFund VP for such services. Amounts voluntarily waived are not subject to recoupment in subsequent fiscal years.

Coresup1 AMERICAN SKANDIA LIFE ASSURANCE CORPORATION A Prudential Financial Company One Corporate Drive, Shelton, Connecticut 06484 AMERICAN SKANDIA ADVISOR PLANSM III (“ASAP III”) AMERICAN SKANDIA APEX® II (“APEX II”) AMERICAN SKANDIA XTRA CREDITSM SIX (“XT6”) AMERICAN SKANDIA LIFEVEST® II (“ASL II”) Flexible Premium Deferred Annuities PROSPECTUS: MAY 1,2006 This prospectus describes four different flexible premium deferred annuities (the “Annuities” or the “Annuity”) offered by American Skandia Life Assurance Corporation (“American Skandia”, “we”, “our”, or “us”). Each Annuity may be offered as an individual annuity contract or as an interest in a group annuity. Each Annuity has different features and benefits that may be appropriate for you based on your financial situation, your age and how you intend to use the Annuity. This Prospectus describes the important features of the Annuities and what you should consider before purchasing one of the Annuities. The Prospectus also describes differences among the Annuities which include differences in the fees and charges you pay and variationsin some product features such as the availability of certain bonus amounts and basic death benefit protection. These differences among the products are discussed more fully in the Prospectus and summarized in Appendix F entitled “Selecting the Variable Annuity That’s Right for You”. There may also be differences in the compensation paid to your Financial Professional for each Annuity. In addition, selling broker-dealer firms through which each Annuity is sold may decline to make available to their customers certain of the optional features offered generally under the Annuity. Alternatively, such firms may restrict the availability of the optional benefits that they do make available to their customers (e.g., by imposing a lower maximum issue age for certain optional benefits than what is prescribed generally under the Annuity). Please speak to your registered representative for further details. Each Annuity or certain of its investment options and/or features may not be available in all states. Various rights and benefits may differ between states to meet applicable laws and/or regulations. For more information about variations applicable to your state, please refer to your Annuity contract or consult your Financial Professional. Certain terms are capitalized in this Prospectus. Those terms are either defined in the Glossary of Terms or in the context of the particular section. The Sub-accounts Available Information Each Sub-account of American Skandia Life Assurance Corpo- We have also filed a Statement of Additional Information that is ration Variable Account B invests in an underlying mutual fund available from us, without charge, upon your request. The portfolio. Currently, portfolios of the following underlying mutual contents of the Statement of Additional Information are described funds are being offered: AIM Variable Insurance Funds, American on page 110. This Prospectus is part of the registration statement Skandia Trust, Evergreen Variable Annuity Trust, First Defined we filed with the SEC regarding this offering. Additional Portfolio Fund LLC, Gartmore Variable Insurance Trust, ProFunds information on us and this offering is available in the registration VP, The Prudential Series Fund and Wells Fargo Variable Trust. statement and the exhibits thereto. You may review and obtain See the following page for the complete list of Sub-accounts. copies of these materials at the prescribed rates from the SEC’s Public Reference Section, 100 F Street N.E., Washington, D.C., Please Read This Prospectus 20549. (See SEC file number 333-96577 for ASAP III, 333-71654 Please read this Prospectus and the current prospectus for for APEX II, 333-71834 for XT6 and 333-71672 for ASL II). These the underlying mutual funds. Keep them for future reference. documents, as well as documents incorporated by reference, may If you are purchasing one of the Annuities as a replacement for an also be obtained through the SEC’s Internet Website (http:// existing variable annuity or variable life coverage or a fixed www.sec.gov) for this registration statement as well as for other insurance policy, you should consider any surrender or penalty charges you may incur when replacing your existing coverage and registrants that file electronically with the SEC. that this Annuity may be subject to a contingent deferred sales For Further Information call: charge if you elect to surrender the Annuity or take a partial withdrawal. You should consider your need to access the Annuity’s ➜ 1-800-752-6342 Account Value and whether the Annuity’s liquidity features will satisfy that need. These annuities are NOT deposits or obligations of, or issued, guaranteed or endorsed by, any bank, are NOT insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board or any other agency. An investment in an annuity involves investment risks, including possible loss of value, even with respect to amounts allocated to the AST Money Market Sub-account. These securities have not been approved or disapproved by the Securities and Exchange Commission or any state securities commission nor has the Commission or any state securities commission passed upon the accuracy or adequacy of this Prospectus. Any representation to the contrary is a criminal offense. American Skandia Advisor Plan IIISM, American Skandia APEX® II, American Skandia XTra Credit SIXSM and American Skandia LifeVest® II are service marks or registered trademarks of The Prudential Insurance Company of America and are used under license by its affiliates. Prospectus Dated: May 1, 2006 Statement of Additional Information Dated: May 1, 2006 COREPROS0506 ASAP3SAI, APEX2SAI, XT6SAI, ASL2SAI PLEASE SEE OUR PRIVACY POLICY AND OUR IRA, ROTH IRA AND FINANCIAL DISCLOSURE STATEMENTS ATTACHED TO THE BACK COVER OF THIS PROSPECTUS. INVESTMENT OPTIONS American Skandia Trust First Defined Portfolio Fund, LLC AST Advanced Strategies First Trust® 10 Uncommon Values AST Aggressive Asset Allocation Global Dividend Target 15 AST AllianceBernstein Core Value NASDAQ® Target 15 AST AllianceBernstein Managed Index 500 S&P® Target 24 AST AllianceBernstein Growth & Income Target Managed VIP AST American Century Income & Growth The Dow Target Dividend AST American Century Strategic Balanced The DowSM DART 10 AST Balanced Asset Allocation Value Line® Target 25 AST Capital Growth Asset Allocation AST Cohen & Steers Realty Gartmore Variable Insurance Trust AST Conservative Asset Allocation GVIT Developing Markets AST DeAM Large-Cap Value ProFund VP AST DeAM Small-Cap Growth Access VP High Yield AST DeAM Small-Cap Value Asia 30 AST Federated Aggressive Growth Banks AST First Trust Balanced Target Basic Materials AST First Trust Capital Appreciation Target Bear AST Global Allocation Biotechnology AST Goldman Sachs Concentrated Growth Bull AST Goldman Sachs Mid-Cap Growth Consumer Goods AST Goldman Sachs Small-Cap Value Consumer Services AST High Yield Europe 30 AST JPMorgan International Equity Financials AST Large-Cap Value Health Care AST Lord Abbett Bond Debenture Industrials AST LSV International Value Internet AST Marsico Capital Growth Japan AST MFS Global Equity Large-Cap Growth AST MFS Growth Large-Cap Value AST Mid-Cap Value Mid-Cap Growth AST Money Market Mid-Cap Value AST Neuberger Berman Mid-Cap Growth Oil & Gas AST Neuberger Berman Mid-Cap Value OTC AST PIMCO Limited Maturity Bond Pharmaceuticals AST PIMCO Total Return Bond Precious Metals AST Preservation Asset Allocation Real Estate AST Small-Cap Growth Rising Rates Opportunity AST Small-Cap Value Semiconductor AST T. Rowe Price Asset Allocation Short Mid-Cap AST T. Rowe Price Large-Cap Growth Short OTC AST T. Rowe Price Global Bond Short Small-Cap AST T. Rowe Price Natural Resources Small-Cap Growth AST William Blair International Growth Small-Cap Value AIM Variable Insurance Funds Technology AIM V.I. Dynamics Fund — Series I shares Telecommunications AIM V.I. Financial Services Fund — Series I shares U.S. Government Plus AIM V.I. Global Health Care Fund — Series I shares UltraBull AIM V.I. Technology Fund — Series I shares UltraMid-Cap UltraOTC Evergreen Variable Annuity Trust UltraSmall-Cap Growth Utilities International Equity Omega The Prudential Series Fund SP William Blair International Growth Wells Fargo Variable Trust Wells Fargo Advantage VT Equity Income Contents

Introduction...... 1 Why Would I Choose to Purchase One of the Annuities? ...... 1 What Are Some of the Key Features of the Annuities? ...... 1 How Do I Purchase One of the Annuities? ...... 2 Glossary of Terms ...... 3 Summary of Contract Fees and Charges ...... 5 Expense Examples ...... 15 Investment Options ...... 16 What are the Investment Objectives and Policies of the Portfolio? ...... 16 What are the Fixed Allocations? ...... 36 Fees and Charges ...... 37 What are the Contract Fees and Charges? ...... 37 What Charges Apply to the Fixed Allocations? ...... 39 What Charges Apply if I Choose an Annuity Payment Option? ...... 39 Exceptions/Reductions to Fees and Charges ...... 39 Purchasing Your Annuity ...... 40 What are Our Requirements for Purchasing One of the Annuities? ...... 40 Managing Your Annuity ...... 41 May I Change the Owner, Annuitant and Beneficiary Designations? ...... 41 May I Return My Annuity if I Change My Mind? ...... 41 May I Make Additional Purchase Payments? ...... 41 May I Make Scheduled Payments Directly from My Bank Account? ...... 42 May I Make Purchase Payments Through a Salary Reduction Program? ...... 42 Managing Your Account Value ...... 43 How and When are Purchase Payments Invested? ...... 43 How Do I Receive a Loyalty Credit Under the ASAP III and APEX II Annuities? ...... 43 How Are Loyalty Credits Applied to My Account Value Under the ASAP III and APEX II Annuities? .. 43 How Do I Receive Credits Under the XT6 Annuity? ...... 44 How Are Credits Applied to Account Value Under the XT6 Annuity? ...... 44 Are There Restrictions or Charges on Transfers Between Investment Options? ...... 45 Do You Offer Dollar Cost Averaging? ...... 47 Do You Offer Any Automatic Rebalancing Programs? ...... 48 Are Any Asset Allocation Programs Available? ...... 48 Do You Offer Programs Designed to Guarantee a “Return of Premium” at a Future Date? ...... 48 May I Give My Financial Professional Permission to Forward Transaction Instructions? ...... 49 May I Authorize My Third Party Investment Advisor to Manage My Account? ...... 49 How Do the Fixed Allocations Work? ...... 50 How Do You Determine Rates for Fixed Allocations? ...... 51 How Does the Market Value Adjustment Work? ...... 51 What Happens When My Guarantee Period Matures? ...... 52 Access To Account Value ...... 53 What Types of Distributions are Available to Me? ...... 53 Are There Tax Implications for Distributions? ...... 53 Can I Withdraw a Portion of My Annuity? ...... 53 How Much Can I Withdraw as a Free Withdrawal? ...... 54 Can I Make Periodic Withdrawals from My Annuity During the Accumulation Period? ...... 54 Do You Offer a Program for Withdrawals Under Sections 72(t)/72(q) of the Internal Revenue Code? ...... 54 What are Minimum Distributions and When Would I Need to Make Them? ...... 54 Can I Surrender My Annuity for Its Value? ...... 55 What is a Medically-Related Surrender and How Do I Qualify? ...... 55

(i) Contents What Types of Annuity Options are Available? ...... 55 How and When Do I Choose the Annuity Payment Option? ...... 57 How are Annuity Payments Calculated? ...... 57 Living Benefit Programs ...... 59 Do You Offer Programs Designed to Provide Investment Protection for Owners While They are Alive? ...... 59 Guaranteed Return Option PlusSM (GRO PlusSM) ...... 59 Guaranteed Return Option (GRO) ...... 64 Guaranteed Minimum Withdrawal Benefit (GMWB) ...... 67 Guaranteed Minimum Income Benefit (GMIB) ...... 71 Lifetime FiveSM Income Benefit (Lifetime Five) ...... 76 Spousal Lifetime Five Income Benefit (Spousal Lifetime Five) ...... 81 Death Benefit ...... 86 What Triggers the Payment of a Death Benefit? ...... 86 Basic Death Benefit ...... 86 Optional Death Benefits ...... 86 American Skandia’s Annuity Rewards ...... 91 Payment of Death Benefits ...... 91 Valuing Your Investment ...... 94 How is My Account Value Determined? ...... 94 What is the Surrender Value of My Annuity? ...... 94 How and When Do You Value the Sub-Accounts? ...... 94 How Do You Value Fixed Allocations? ...... 94 When Do You Process and Value Transactions? ...... 94 What Happens to My Units When There is a Change in Daily Asset-Based Charges? ...... 96 Tax Considerations ...... 97 General Information ...... 104 How Will I Receive Statements and Reports? ...... 104 Who is American Skandia? ...... 104 What are Separate Accounts? ...... 104 What is the Legal Structure of the Underlying Funds? ...... 106 Who Distributes Annuities Offered by American Skandia? ...... 107 Incorporation of Certain Documents by Reference ...... 108 Financial Statements ...... 108 How to Contact Us ...... 108 Indemnification ...... 109 Legal Proceedings ...... 109 Contents of the Statement of Additional Information ...... 110 Appendix A — Condensed Financial Information About Separate Account B ...... A-1 Appendix B — Calculation of Optional Death Benefits ...... B-1 Appendix C — Plus40TM Optional Life Insurance Rider ...... C-1 Appendix D — Additional Information on Asset Allocation Programs ...... D-1 Appendix E — Description and Calculation of Previously Offered Optional E-1 Death Benefits ...... Appendix F — Selecting the Variable Annuity That’s Right for You ...... F-1

(ii) AMERICAN SKANDIA ANNUITIES PROSPECTUS 1 “flexible premium” because you have considerabletiming flexibility and in amount the of Purchase Payments.“defer” Generally, receiving investors annuity payments until afterperiod. an accumulation you allocate your Account Value toAnnuity Sub-accounts, will the vary value daily of to your reflectunderlying the investment investment options. performance Fixed of Allocations the ofdurations different are offered that are guaranteedMarket by Value us, Adjustment but if may you have withdrawValue a or before transfer the your Maturity Account Date. period and the payout period. DuringAccount the Value accumulation is period allocated your to one or more investment options. elect to receive annuity payments (1)guaranteed for minimum life; number (2) of for payments; life (3)or with based (4) a on for joint a lives; guaranteed numberannuity of payments payments. available We on currently a make fixedpayment or options variable are basis. made Variable available throughand a prospectus. different contract charge, that can provide principal protectionminimum or income guaranteed protection for Owners while they are alive. Death Benefits that provide an enhancedyour level beneficiary(ies) of for protection an for additional charge. Annuity on an annual basis withoutoptional any guaranteed charges, benefit although you any elect mayproduct be features reduced. allow Other you to accessnecessary, your although Account a Value charge as may apply. may make twenty transfers each yearseveral free programs of that charge. enable We you also toas offer manage your your financial Account needs Value and investment performance change. WhatAreSomeoftheKeyFeatures of the Annuities? • Each Annuity is a “flexible premium deferred annuity.” It is called • Each Annuity offers both Sub-accounts and Fixed Allocations. If • Each Annuity features two distinct periods — the accumulation • During the payout period, commonly called “annuitization,” you can • Each Annuity offers optional income benefits, for an additional • Each Annuity offers a basic Death Benefit. It also offers optional • You are allowed to withdraw a limited amount of money from each • Transfers between investment options are tax-free. Currently, you investment, investment, you itled, “Selecting the Variable “non-qualified” “qualified” . 2 ⁄ 1

. Annuities purchased as a non-qualified investment 2 ⁄ 1

reach age 59 penalty tax may be applied on withdrawals you make before you the Annuity is designed for long-term retirement savings, a 10% remains invested and can earn additional money. However, because otherwise be needed to pay taxes on investment gains each year cial to the growth of your Account Value because money that would payments. This feature, referred to as “tax-deferral”, can be benefi- earns until you make a withdrawal or begin to receive annuity you generally are not taxed on any investment gains the Annuity

features, please refer to Appendix F ent common as well as differences. For a summary of each Annuity’s different Annuities including features that these Annuities have in When an Annuity is purchased as a as in one or more Fixed Allocations. This Prospectus describes four Annuity That’s Right for You.” allows you to invest your money in a number of Sub-accounts as well investment vehicle for “non-qualified” investments. Each Annuity Sheltered Annuity (or 403(b)). Each Annuity may also be used as an such as 401(k), profit sharing and money purchase plans) or Tax 401(a) plans (defined benefit plans and defined contribution plans “qualified” investments, including an IRA, SEP-IRA, Roth IRA, Section markets. Each Annuity may be used as an investment vehicle for your retirement savings if you die during a period of declining while they are alive and one or more Death Benefits that can protect protection or guaranteed minimum income protection for Owners benefits, for an additional charge, that can provide principal income. Each Annuity also offers a choice of different optional annuity payment options when you are ready to begin receiving they allow you to accumulate retirement savings and also offer the Annuities? The Annuities are frequently used for retirement planning because Why Would I Choose to Purchase One of Introduction distributions after age 70 a qualified investment, and are not subject to required minimum are not subject to the maximum contribution limits that may apply to the Annuity are appropriate considering your overall financial plan. Financial Professional as to whether the overall benefits and costs of options offered under the Annuity. You should consult with your ability to make transfers between numerous variable investment protection for your beneficiaries, lifetime income options and the that other investment vehicles may not offer, including Death Benefit may offer features and benefits in addition to providing tax deferral When an Annuity is purchased as a treatment provided by your retirement plan. An Annuity, however, words, you need not invest in an Annuity to gain the preferential tax your retirement plan under the Internal Revenue Code. In other in addition to the preferential treatment already available through should consider that the Annuity does not provide any tax advantages s, the oldest of those Owners eater protection for Owners under How Do I PurchaseWe One sell of each the Annuity through Annuities? licensed,Professionals. registered Unless Financial we agree otherwise andeach subject Annuity to has our minimum rules, initial Purchase$1,000 Payments for as ASAP follows: III, $10,000 forASL XT6 II. and We APEX may II, allow and youprovided $15,000 to you for make establish a an lower electronic initial fundsPurchase Purchase transfer Payments Payment under received which in the firstthe Annuity minimum Year initial total Purchase at Payment least forUnless the we Annuity agree purchased. otherwise and subjectowned to by our an rules, individual if or the individual must Annuity not is be older than athe maximum Annuity issue as age follows: as age of 8085 the for for Issue ASAP APEX Date III, II. of age For 75 ASLthe for II, basic XT6 there death and is benefit age no provides maximum gr age issue 85. age, If however the Annuity isbe owned older by than an the entity, maximum the issueAnnuity annuitant age, unless must we as not of agree the otherwise. Issue Theprotection Date availability of of and certain the level optional of benefits maythe vary Owner based on on the the Issue age Dateelected, of of or the the Annuity, date the of date the the Owner’s benefit death. is continued , Purchase Credit or Credit) to your SM amount is included in your Account Value. However, SM state availability) this Annuity offersadd a to Loyalty your Credit Account which Value we that with have respect been to made Purchase during Payments withdrawals the through first the four fifth Annuity Annuity Yearsour Anniversary, less rules subject and to State availability. availability) this Annuity offers ayour Loyalty Account Credit Value which with we respect addhave to to been Purchase made Payments during that thedrawals first through four the Annuity fifth Years Annuity lessrules Anniversary, with- and subject State to availability. our (referredtoasanXTraCredit American Skandia may take backreturn all your XTra Annuity Credit under amounts the ifAmerican “free-look” you Skandia provision. may In take addition, backany XTra Purchase Credits Payment associated if with (a)twelve the (12) XTra months Credit prior was to appliedif the within entity-owned) death or of (b) the the Ownermonths XTra (or prior Credit Annuitant to was a applied request withinmedically-related to 12 surrender surrender provision. the If Annuity you underXtra qualify the Credit for in the the 6.5% firstFebruary year 13, (for 2006, annuities subject issued to onamount state or will availability), after be only taken 6% back ofsurrender upon that request, death both or as medically-related describedtake above. back However, the we entire will 6.5% if you “free-look” your Annuity. reduced. The amount we takewithout back adjustment will up equal or the down XTraTherefore, for Credit, any investment gain performance. on theback. XTra But Credit if amount there will was nottake a be back loss taken will on still the equal XTrational the Credit, conditions amount the and of amount restrictions the we apply. XTraCDSC We Credit. in do Addi- any not situation deduct where a amount. we take back the XTra Credit with that annuity. Credits applicablenot to be bonus viewed products as should anto offset any of annuity any contract surrender you chargeon currently that all own. applies available For annuities, more please information prospectus. see Appendix F of this Account Value with each Purchaseyour Payment initial you Purchase make, Payment including andPayments any during additional the Purchase first six Annuity Years. charges on the XT6 Annuityannuities. are In higher addition, than the many Contingent of(CDSC) Deferred our on Sales other the Charge XT6 Annuityperiod is of higher time and as is compared deductedCredit to for our a other longer annuities. The XTra With respect to ASAP III• For only: annuities issued on or after February 13, 2006 (subject to With respect to APEX II• For only: annuities issued on or after June 20, 2005 (subject to state With respect to XT6 only: • If you purchase this Annuity, we apply an additional amount • In these situations, your Account Value could be substantially • If replacing an annuity, please consider all charges associated Introduction • Please note that during the first 10 years, the total asset-based

AMERICAN SKANDIA ANNUITIES PROSPECTUS 2 AMERICAN SKANDIA ANNUITIES PROSPECTUS 3 )/ SM (GRO Plus SM

HIGHEST ANNIVERSARY VALUE DEATH BENEFIT (“HAV”) We offer an Optional Deathprovides Benefit an that, enhanced for level an of additionalby protection cost, providing for a your death beneficiary(ies) benefitDeath equal Benefit to and the the greater Highest ofwithdrawals. Anniversary the Value, basic less proportional Under state insurance laws, youperiod have of the time, right, to during examine a your limited keep Annuity it. and This decide right if is you referredof want to this to as time your period “free depends look” ondepending right. the on The law whether length of your your purchase state, isyour and a Annuity may replacement contract vary or for not. more Check details about your freeGUARANTEED look MINIMUM right. INCOME BENEFIT (GMIB) We offer a program that, forwaiting an period, additional guarantees cost, your ability after to afrom begin seven-year your receiving Annuity income in the formtotal of Purchase annuity Payments payments and based an on annualPurchase your increase Payments adjusted of 5% for withdrawals on (called such Income the Value”), “Protected regardless of the impactyour of Account market Value. performance on GUARANTEED MINIMUM WITHDRAWAL BENEFIT (GMWB) We offer a program that, forability an to additional withdraw cost, amounts over guarantees time your value, equal regardless to of an the initial impact principal ofAccount market Value. performance on your GUARANTEE PERIOD A period of time during thefixed accumulation rate period of where interest we on credit a a Fixed Allocation. GUARANTEED RETURN OPTION Plus GUARANTEED RETURN OPTION We offer a program that, forof an premium” at additional a cost, future guarantees date, aportion while “return of allowing your you Account to Value allocate to all certain or Sub-accounts. a ENHANCED BENEFICIARY PROTECTION DEATH BENEFIT We offer an Optional Death Benefitprovides that, an for enhanced an level additional of cost, protectionproviding for amounts your in beneficiary(ies) addition by to theused basic to Death offset Benefit federal that and can stateyour be taxes Annuity payable at on the any time of taxable your gains death. in FIXED ALLOCATION An investment option that offers afied fixed Guarantee rate Period of during interest the for accumulation a period. speci- FREE LOOK Annuitant to begin receiving peri-

each Annuity. “Summary of Contract Fees and Charges” for details on the CDSC for among ASAP III, APEX II and XT6. There is no CDSC for ASL II. See Purchase Payment. The amount and duration of the CDSC varies ular percentage applies is measured from the effective date of each Payment that is being withdrawn. The period during which a partic- drawal. The charge is a percentage of each applicable Purchase “contingent” charge because it is imposed only if you make a with- partial withdrawal under your Annuity. We refer to this as a withdrawals. This is a sales charge that may be deducted when you make a full or and a 5% annual increase on Purchase Payments adjusted for CONTINGENT DEFERRED SALES CHARGE (CDSC) providing the greater of the Highest Anniversary Value Death Benefit provides an enhanced level of protection for your beneficiary(ies) by COMBINATION 5% ROLL-UP AND HAVWe DEATH offer an BENEFIT Optional Death Benefit that, for an additional cost, CODE The Internal Revenue Code of 1986, as amended from time to time. of payments. each successive 12-month period thereafter. number of payments or for life with a guaranteed minimum number ANNUITY YEAR A 12-month period commencing on the Issue Date of the Annuity and APEX II, the Account Value includes any Loyalty Credit we apply. odic payments for life (or joint lives), for a guaranteed minimum Annuity Date may apply. take back under certain circumstances. With respect to ASAP III and ANNUITY DATE The date you choose for annuity payments to commence. A maximum Credits we applied to your Purchase Payments that we are entitled to adjustment. With respect to XT6, the Account Value includes any available annuity options for the than its Maturity Date may be calculated using a market value Guaranteed Minimum Income Benefit, if applicable) to one of the entire Annuity. The Account Value of each Fixed Allocation on other ANNUITIZATION The application of Account Value (or Protected Income Value for the Allocation, and then totaled to determine the Account Value for your determined separately for each Sub-account and for each Fixed deducted from the contract annually in arrears. The Account Value is charge”) and/or, other than on a contract anniversary, any fee that is applicable Contingent Deferred Sales Charge (“CDSC” or “surrender and charges. The Account Value is calculated before we assess any Annuity Date, plus any earnings, and/or less any losses, distributions “variable investment option”) or a Fixed Allocation prior to the The value of each allocation to a Sub-account (also referred to as a appear. The description of those terms areACCOUNT not VALUE repeated in this Glossary of Terms. Many terms used within this Prospectus are described within the text where they Glossary of Terms SURRENDER VALUE The value of your Annuity availableAnnuity upon Date. surrender It prior equals to the the Accountsurrender Value minus as any of applicable the CDSC, date AnnualCharge we Maintenance and price Fee, the the Tax charge for anyamounts optional we benefits applied and to any your additional Purchaseentitled Payments to that recover we under may certain be circumstances.may The be surrender calculated value using a MVAAllocation. with No respect CDSC to applies amounts to in the any ASL Fixed II Annuity. UNIT A measure used to calculate yourduring Account the Value accumulation in period. a Sub-account VALUATION DAY Every day the New York Stockother Exchange day is the open Securities for and trading Exchangefunds or Commission or any requires unit mutual investment trusts to- be valued. SPOUSAL LIFETIME FIVE INCOME BENEFIT We offer a program that, forlater an death additional of two cost, Designated guarantees Lives untilthe (as the ability defined to in withdraw this an Prospectus) annualprincipal amount value equal regardless to of 5% the of impactthe an of Account initial market Value, performance subject on to ourand program amount rules of regarding withdrawals. the timing SUB-ACCOUNT We issue your Annuity through ourthe separate Separate account. Account?” See under “What the is Generalseparate Information account section. invests in The underlying mutualan fund accounting portfolios. perspective, we From divide thenumber separate of sections, account into each a of whichlying corresponds mutual to fund a portfolio. particular We under- separate refer to account each as such a section “Sub-account”. of our continued o a percentage of an initial vidual annuity contract, the Owner is either an eligible entity orrights person in named relation as to having the ownership Annuity.cate With under an a Annuity group issued annuity as contract,or a the entity certifi- “Owner” who refers has to the the rights“Participant” person and in benefits the designated certificate. as to the With an Annuity issued as an indi MVA A market value adjustment used inValue the of determination each of Fixed Account Allocation onthe any Maturity day Date more of than such 30 Fixed days Allocation. prior to OWNER ISSUE DATE The effective date of your Annuity. LIFETIME FIVE INCOME BENEFIT We offer a program that, forability an to additional withdraw cost, amounts equal guarantees your t principal value, regardless of the impactyour of Account market Value, performance subject on to ourand program amount rules of regarding withdrawals. the timing INTERIM VALUE The value of a Fixed AllocationDate. on The any Interim date Value other is than equalFixed the to Allocation Maturity the plus initial all interest value credited allocatedthe to to date the the calculated, Fixed less Allocation any as transfersAllocation. of or withdrawals from the Fixed HIGHEST DAILY VALUE DEATH BENEFITWe (“HDV”) offer an Optional Death Benefitprovides that, an for enhanced an level additional of cost, protectionproviding for a your death beneficiary(ies) benefit by equal toBenefit the and greater the of Highest the Daily basic Value, Death less proportional withdrawals. Glossary of Terms

AMERICAN SKANDIA ANNUITIES PROSPECTUS 4 AMERICAN SKANDIA ANNUITIES PROSPECTUS 5 maximum) Up to 9.0% cable Purchase Payment $10.00 (currently, $15.00 0% to 3.5% of the value that is annuitized, depending on the requirements of the applicable jurisdiction. maximum) charge is a percentage of each appli $10.00 (currently, $15.00 0% to 3.5% of the value that is annuitized, depending on the requirements of the applicable jurisdiction. Sales Charge deducted upon surrender or partial withdrawal. ge free transfers per Annuity Year will never be less than 8. e described in more detail within this Prospectus. maximum) harges upon surrender or withdrawal. The $10.00 (currently, $15.00 0% to 3.5% of the value that is annuitized, depending on the requirements of the applicable jurisdiction. lar percentage applies is measured from the Issue Date of the Annuity. maximum) Up to 7.5% Up to 8.5% There is no Deferred transfer each Annuity Year. We guarantee that the number of char th that is annuitized, depending on the requirements of the applicable jurisdiction. FEE/CHARGE ASAP III APEX II ASL II XT6

Tax Charge*** 0% to 3.5% of the value deducted upon surrender or withdrawal. The period** during Currently, which we a deduct particu the fee after the 20 * The tables on the following page contain the Contingent Deferred Sales C Sales Charge* Contingent Deferred Transfer Fee** $10.00 (currently, $15.00 YOUR TRANSACTION FEES AND CHARGES (ASSESSED AGAINST EACH ANNUITY) Value among investment options. These fees and charges ar The following table provides a summary of the fees and charges you will pay if you surrender your Annuity or transfer Account about the expenses for the underlying mutual funds. The prospectus for each underlying mutual fund provides more detailed information investment management, other expenses and with some mutual funds, a 12b-1 charge. Protected Income Value. Each underlying mutual fund portfolio assesses a charge for other than the Guaranteed Minimum Income Benefit, which is assessed against the applicable Distribution Charge and the charge for certain optional benefits you elect, Mortality and Expense risk charge, the charge for Administration of the Annuity, any Maintenance Fee. The charges that are assessed against the Sub-accounts are the applicable Contingent Deferred Sales Charge, Transfer Fee, Tax Charge and Annual Sub-accounts. The fees and charges that are assessed against an Annuity include any assessed against each Annuity while others are assessed against assets allocated to the Below is a summary of the fees and charges for the Annuities. Some fees and charges are

and Charges Summary of Contract Fees *** This charge is deducted generally at the time you annuitize your contract. continued XT6 APEX II ASAP III Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5+ 8.5% 8.0% 7.0% 6.0% 0.0% Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 Yr. 6 Yr. 7 Yr. 8 Yr. 9+ 7.5% 7.0% 6.5% 6.0% 5.0% 4.0% 3.0% 2.0% 0.0% CONTINGENT DEFERRED SALES CHARGES FOR EACH ANNUITY Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 Yr. 6 Yr. 7 Yr. 8 Yr. 9 Yr. 10 Yr. 11+ 9.0% 9.0% 8.5% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 0.0% Summary of Contract Fees and Charges

AMERICAN SKANDIA ANNUITIES PROSPECTUS 6 AMERICAN SKANDIA ANNUITIES PROSPECTUS 7 5 ity and receive the Qualified Beneficiary tus. ary will incur the Settlement mation about this option, including 1.65% per year of the value of each Sub-account in Annuity Years 1-10; 0.65% in Annuity Years 11 and later (1.40% per year if you arebeneficiary a electing the Qualified BCO) Smaller of $35Account Value or 2% of 1.40% per year of the value of each Sub-account if the Owner’s beneficiary elects the Qualified Beneficiary Continuation Option (“Qualified BCO”) 1.00% in Annuity Years 1–10 (“Qualified 5 ion Option for more detailed infor 1.65% per year of the value of each Sub-account (1.40% per year if you are a beneficiary electing the Qualified BCO) Smaller of $35 or 2%Account Value** of 1.40% per year of the value of each Sub-account if the Owner’s beneficiary elects the Qualified Beneficiary Continuation Option BCO”) (“Qualified harge is referred to as the “Insurance Charge” elsewhere in this Prospec upon the Owner’s death a beneficiary may generally elect to continue the Annu 5 1 it in a single payment. If a beneficiary elects this option, the benefici istribution Charge (if applicable) do not apply if you are a beneficiary under 1.65% per year of the value of each Sub-account (1.40% per year if you are a beneficiary electing the Qualified BCO) Smaller of $35 or 2%Account Value** of 1.40% per year of the value of each Sub-account if the Owner’s beneficiary elects the Qualified Beneficiary Continuation Option BCO”) bes the Qualified Beneficiary Continuat our beneficiary elects the Qualified Beneficiary Continuation Option. 0.50%0.15% 1.50% 0.15% 1.50% 0.15% 0.50% 0.15% (“Qualified 5 1.25% per year of the value of each Sub-account in Annuity Years 1-8; 0.65% in Annuity Years 9 and later (1.40% per year if you are a beneficiary electing the Qualified BCO) Account Value** BCO”) 0.60% in Annuity Years 1-81.40% per year of the value of each Sub-account if the Owner’s beneficiary elects the Qualified Beneficiary Continuation Option N/A N/A 2 3 4 2 FEE/CHARGE FEE/CHARGE ASAP III APEX II ASL II XT6

These charges are deducted daily and applyThe to combination the of Sub-accounts the only. Mortality and Expense Risk Charge and Administration C The Distribution Charge is 0.00% in AnnuityThe Years Mortality 9+ for & ASAP Expense III Risk and Charge, in Annuity the Years Administration 11+ Charge for and XT6. When the D an Annuity is used as an IRA, 403(b) or other “qualified investment”, certain restrictions and limitations that may apply. Sub-accounts Total Annual Charges of the 1: 2: ** Only applicable if Account Value is less than $100,000. * Assessed annually on the Annuity’s anniversary date or upon surrender. 3: 4: Continuation Option. The Settlement Service Charge applies5: only if y Charge Mortality & Expense Risk (ASSESSED AS A PERCENTAGE OF THE DAILY NET ASSETS OF THE SUB-ACCOUNTS) ANNUAL FEES/CHARGES OF THE SUB-ACCOUNTS Annual Maintenance Fee* Smaller of $35 or 2% of YOUR PERIODIC FEES AND CHARGES (ASSESSED AGAINST EACH ANNUITY) Prospectus. the underlying mutual fund Portfolio annual expenses. These fees and charges are described in more detail within this Minimum Distributions under theService Annuity Charge. instead Please of refer receiving to the the section death of benef this Prospectus that descri The following table provides a summary of the periodic fees and charges you will pay while you own your Annuity, excluding Charge Settlement Service Administration Charge Distribution Charge for XT6 TOTAL ANNUAL CHARGE* 1.90% in Annuity Years 1–10; 0.90% in Annuity Years 11 and later; 1.65% for Qualified BCO 2.00% in Annuity Years 1–10; 1.00% in Annuity Years 11 and later; 1.75% for Qualified BCO 1.65% in Annuity Years 1–10; 0.65% in Annuity Years 11 and later PLUS 0.50% per year of average Protected Income Value Years 1–10; 1.25% in Annuity Years 9 and later continued for ASL II TOTAL ANNUAL CHARGE* 2.00%; 1.75% for Qualified BCO 1.90%; 1.65% for Qualified BCO 1.65% PLUS 0.50% per year of average Protected Income Value for TOTAL APEX II ANNUAL CHARGE* 2.00%; 1.75% for Qualified BCO 1.90%; 1.65% for Qualified BCO 1.65% PLUS 0.50% per year of average Protected Income Value 2.25% 2.25% 2.25% in Annuity for )/GUARANTEED RETURN OPTION TOTAL ASAP III ANNUAL SM CHARGE* 1.60% in Annuity Years 1–8; 1.00% in Annuity Years 9 and later; 1.75% for Qualified BCO 1.50% in Annuity Years 1–8; 0.90% in Annuity Years 9 and later; 1.65% for Qualified BCO 1.25% in Annuity Years 1–8; 0.65% in Annuity Years 9 and later PLUS 0.50% per year of average Protected Income Value 1.85% in Annuity Years 1–8; 1.25% in Annuity Years 9 and later (GRO Plus SM FEE/ BENEFIT CHARGE OPTIONAL 0.35% of average daily net assets of the Sub- accounts 0.50% per year of the average Protected Income Value during each year; deducted annually in arrears each Annuity Year 0.25% of average daily net assets of the Sub- accounts 0.60% of average daily net assets of the Sub- accounts INCOME BENEFIT** SM OPTIONAL BENEFIT GUARANTEED RETURN OPTION Plus The following table sets forthperiodic the fees charge and for transaction each fees optional set benefit forth under in the the Annuity. tablesYOUR These above. fees OPTIONAL would BENEFIT be FEES in AND addition CHARGES to the GUARANTEED MINIMUM WITHDRAWAL BENEFIT (GMWB)** GUARANTEED MINIMUM INCOME BENEFIT (GMIB)** LIFETIME FIVE Summary of Contract Fees and Charges

AMERICAN SKANDIA ANNUITIES PROSPECTUS 8 AMERICAN SKANDIA ANNUITIES PROSPECTUS 9 for XT6 TOTAL ANNUAL CHARGE* Years 1–10; 1.40% in Annuity Years 11 and later Years 1–10; 0.90% in Annuity Years 11 and later Years 1–10; 0.90% in Annuity Years 11 and later Years 1–10; 1.15% in Annuity Years 11 and later Years 1–10; 1.15% in Annuity Years 11 and later ted to the Sub-accounts. If you for ASL II TOTAL ANNUAL CHARGE* for TOTAL APEX II ANNUAL 2.40% 2.40% 2.40% in Annuity 1.90% 1.90% 1.90% in Annuity 1.90% 1.90% 1.90% in Annuity 2.15% 2.15% 2.15% in Annuity 2.15% 2.15% 2.15% in Annuity CHARGE* for ge (if applicable) assessed against the average daily net assets alloca TOTAL ASAP III ANNUAL CHARGE* 2.00% in Annuity Years 1–8; 1.40% in Annuity Years 9 and later 1.50% in Annuity Years 1–8; 0.90% in Annuity Years 9 and later 1.50% in Annuity Years 1–8; 0.90% in Annuity Years 9 and later 1.75% in Annuity Years 1–8; 1.15% in Annuity Years 9 and later 1.75% in Annuity Years 1–8; 1.15% in Annuity Years 9 and later e increased to include the charge for each optional benefit. FEE/ BENEFIT CHARGE OPTIONAL 0.75% of average daily net assets of the Subaccounts 0.25% of average daily net assets of the Subaccounts 0.25% of average daily net assets of the Subaccounts 0.50% of average daily net assets of the Sub-accounts 0.50% of average daily net assets of the Sub-accounts * The Total Annual Charge includes the Insurance Charge and Distribution Char elect more than one optional benefit, the** Total These Annual optional Charge benefits would are b not available under the Qualified BCO. SPOUSAL LIFETIME FIVE INCOME BENEFIT** OPTIONAL BENEFIT ENHANCED BENEFICIARY PROTECTION DEATH BENEFIT** HIGHEST ANNIVERSARY VALUE DEATH BENEFIT (“HAV”)** COMBINATION 5% ROLL-UP AND HAV DEATH BENEFIT** HIGHEST DAILY VALUE DEATH BENEFIT (“HDV”)** including any restrictions or limitations that may apply. Please refer to the section of this Prospectus that describes each optional benefit for a complete description of the benefit, Expenses Total Annual Portfolio Operating continued Fees 12b-1 1 Other 0.63% 2.48 % Expenses MINIMUM MAXIMUM For the year ended December 31, 2005 Fees 0.86%0.75% 0.23% 0.00% 0.19% 0.00% 1.09% 0.94% 1.04%0.60% 0.29%0.95% 0.17%1.00% 0.00%0.94% 0.00% 0.20% 0.20% 1.33% 0.24% 0.00% 0.77% 0.00% 0.00% 1.15% 1.20% 1.18% Management 5 4 4 4 4 6 2,3 7 Underlying Portfolio AST Advanced StrategiesAST Aggressive Asset Allocation 0.85% 0.18% 0.00% 1.03% AST Goldman Sachs Concentrated GrowthAST Goldman Sachs Mid-Cap GrowthAST Goldman Sachs Small-Cap ValueAST High Yield AST JPMorgan International Equity 0.90% 1.00% 0.95% 0.16% 0.88% 0.18% 0.00% 0.22% 0.00% 0.19% 0.00% 1.06% 0.00% 1.18% 1.17% 1.07% AST AllianceBernstein Core ValueAST AllianceBernstein Managed Index 500 AST AllianceBernstein Growth & IncomeAST American Century Income & GrowthAST American Century Strategic BalancedAST Balanced Asset Allocation AST Capital Growth Asset Allocation AST Cohen 0.75% & Steers Realty 0.75%AST Conservative Asset Allocation 0.75%AST DeAM 0.85% Large-Cap ValueAST DeAM Small-Cap GrowthAST DeAM Small-Cap 0.19% Value 0.13%AST Federated Aggressive Growth 0.18%AST First Trust 0.23% Balanced TargetAST First Trust Capital 0.00% Appreciation Target 0.00%AST Global Allocation 0.00% 1.00% 0.00% 0.85% 0.95% 0.94% 0.95% 0.85% 0.88% 0.95% 0.18% 0.93% 1.08% 0.85% 0.22% 0.20% 0.17% 0.19% 0.00% 0.24% 0.00% 0.19% 0.00% 0.00% 0.00% 0.00% 1.18% 0.00% 1.07% 1.15% 1.12% 1.04% 1.19% 1.04% The following table provides the range (minimum and maximum) of the total annual expenses for the underlying mutual funds American Skandia Trust UNDERLYING MUTUAL FUND PORTFOLIO ANNUAL(AS EXPENSES A PERCENTAGE OF THE AVERAGE NET ASSETS OF THE UNDERLYING PORTFOLIOS) Total Portfolio Operating Expense (“Portfolios”) as of December 31, 2005. Each figure is stated asTOTAL a ANNUAL percentage PORTFOLIO of OPERATING the underlying EXPENSES Portfolio’s average daily net assets. The following are the totalnoted. annual The expenses “Total for Annual each Portfolio underlyingmanagement Operating mutual fee, Expenses” fund other reflect (“Portfolio”) expenses the as and combination ofaverage any of December daily 12b-1 the 31, net fees. underlying 2005, assets. Each Portfolio’s except There figure investment as of is is the no stated underlying guarantee as Portfolios, that a a actual percentagereimbursed. portion expenses of The of will the existence the be underlying of management the Portfolio’s any fee sameexpenses such has as are fee been those deducted waivers waived shown by and/or and/or in the reimbursements other theunderlying underlying have expenses table. Portfolio Portfolio been have For information before reflected been certain was it in partially provided provides theSee by American footnotes. the the Skandia The prospectuses underlying with following or mutual the statements funds dailyprospectus of and net and additional has asset statement information not value. of of been The additional the independently information underlying verified for Portfolios by the for us. underlying further Portfolios details. can The be current obtained by calling 1-800-752-6342. Summary of Contract Fees and Charges

AMERICAN SKANDIA ANNUITIES PROSPECTUS 10 AMERICAN SKANDIA ANNUITIES PROSPECTUS 11 Expenses Total Annual Portfolio Operating Fees 12b-1 1 Other Expenses For the year ended December 31, 2005 Fees 0.89%0.90%0.90% 0.38% 0.17% 0.00% 0.21% 0.00% 0.00% 1.27% 1.07% 1.11% 0.75% 0.16%0.95%0.50% 0.00%0.90% 0.22% 0.13% 0.91% 0.18% 0.00% 0.00% 0.00% 1.17% 0.63% 1.08% Management 11 13 4 17 15,16 14 continued 12 8 9 10 2,3 Target 25 0.60% 0.64% 0.25% 1.49% 10 Uncommon Values 0.60% 0.84% 0.25% 1.69% DART 10 0.60% 0.74% 0.25% 1.59% Target 15 0.60% 0.98% 0.25% 1.83% ® Underlying Portfolio ® ® SM Target 24 0.60% 0.73% 0.25% 1.58% ® Global Dividend Target 15NASDAQ 0.60% 0.76% 0.25% 1.61% AST Large-Cap Value GVIT Developing Markets 1.05% 0.37% 0.25% 1.67% First Trust GrowthInternational EquityOmega 0.41% 0.70% 0.30% 0.52% 0.22% 0.00% 0.19% 0.00% 0.00% 0.71% 0.92% 0.71% AIM V.I. Dynamics Fund — SeriesAIM I V.I. shares Financial Services Fund —AIM Series V.I. I Global shares Health Care FundAIM — V.I. Series Technology I Fund shares — Series I shares 0.75% 0.75% 0.75% 0.75% 0.37% 0.33% 0.42% 0.00% 0.37% 0.00% 0.00% 0.00% 1.12% 1.08% 1.17% 1.12% Target Managed VIPThe Dow Target DividendThe Dow 0.60% 0.60% 0.67% 0.63% 0.25% 0.25% 1.52% 1.48% Value Line AST Small-Cap GrowthAST Small-Cap Value AST T. Rowe Price Asset AllocationAST T. Rowe Price Large-Cap Growth AST T. Rowe Price Global BondAST T. Rowe Price Natural ResourcesAST William Blair International Growth 0.85% 0.90% 0.90% 1.00% 0.80% 0.23% 0.25% 0.18% 0.18% 0.00% 0.21% 0.00% 0.00% 0.00% 0.00% 1.08% 1.15% 1.08% 1.18% 1.01% AST Lord Abbett Bond-DebentureAST LSV International ValueAST Marsico Capital GrowthAST MFS Global EquityAST MFS GrowthAST Mid-Cap Value AST Money Market AST Neuberger Berman Mid-Cap 0.80% Growth AST Neuberger Berman Mid-Cap ValueAST PIMCO Limited Maturity BondAST 1.00% PIMCO Total Return Bond 0.90%AST Preservation Asset Allocation 0.17% 1.00% 0.89% 0.26% 0.00% 0.13% 0.90% 0.65% 0.00% 0.26% 0.00% 0.14% 0.65% 0.97% 0.18% 0.15% 0.00% 0.00% 1.26% 0.15% 1.03% 0.00% 0.00% 1.26% 0.00% 1.03% 1.08% 0.80% 0.80% S&P Gartmore Variable Insurance Trust First Defined Portfolio Fund, LLC Evergreen Variable Annuity Trust American Skandia Trust AIM Variable Insurance Funds Expenses Total Annual Portfolio Operating continued Fees 12b-1 1 Other Expenses For the year ended December 31, 2005 Fees 0.55% 0.25% 0.25% 1.05% Management 20 19 Underlying Portfolio 18 Wells Fargo Advantage VT Equity Income SP William Blair International Growth 0.85% 0.13% 0.00% 0.98% Access VP High YieldAsia 30BanksBasic MaterialsBearBiotechnologyBullConsumer GoodsConsumer ServicesEurope 30FinancialsHealth Care 0.75%IndustrialsInternetJapanLarge-Cap Growth 0.75% 1.13%Large-Cap 0.75% ValueMid-Cap Growth 0.75% 0.75%Mid-Cap ValueOil 0.25% & 0.75% Gas 0.75% 0.75%OTC 0.91% 0.82%Pharmaceuticals 1.03% 0.75%Precious Metals 0.92%Real Estate 0.75% 0.25% 0.25% 1.08% 2.13% Rising 0.86% 0.75% 1.48% Rates Opportunity 0.75%Semiconductor 0.25% 0.25%Short 0.75% Mid-Cap 0.78% 0.75%Short 0.25% OTC 0.25% 0.25% 0.76% 0.75%Short Small-Cap 1.91% 0.75% 1.82% 0.92%Small-Cap Growth 0.89% 0.75% 0.75% 0.25% 2.03% Small-Cap Value 1.17% 1.92% 0.75%Technology 0.25% 0.94% 2.08% 0.25%Telecommunications 0.92% 1.86% 2.48% 0.25% 1.00%U.S. Government 0.75% Plus 0.75% 0.83% 0.25% 0.89%UltraBull 0.75% 1.78% 0.75% 0.25%UltraMid-Cap 0.87% 0.25% 0.75% 1.76% UltraOTC 0.25% 1.92% 0.75% 0.25%UltraSmall-Cap 0.25% 1.89% 0.93% 0.75%Utilities 0.86% 2.17% 0.25% 0.73% 0.86% 0.75% 1.94% 0.84% 1.92% 0.75% 0.75% 2.00% 0.25% 0.75% 0.25% 0.89% 1.83% 1.89% 0.25% 0.98% 0.25% 0.75% 0.75% 1.28% 1.87% 0.25% 0.50% 0.25% 0.75% 0.90% 0.85% 0.25% 0.85% 1.93% 1.86% 0.25% 1.73% 0.91% 1.86% 0.91% 0.75% 0.25% 1.84% 0.75% 0.84% 0.25% 0.25% 0.89% 1.89% 0.75% 0.25% 1.98% 0.75% 0.25% 2.28% 0.25% 0.25% 0.91% 0.75% 0.88% 1.90% 1.85% 1.85% 0.91% 0.85% 1.91% 1.91% 0.25% 0.25% 1.59% 0.89% 1.89% 0.25% 0.25% 0.25% 1.91% 1.88% 1.91% 1.85% 1.89% The Prudential Series Fund Wells Fargo Variable Trust ProFund VP Summary of Contract Fees and Charges

AMERICAN SKANDIA ANNUITIES PROSPECTUS 12 AMERICAN SKANDIA ANNUITIES PROSPECTUS 13 pital 5, GAMCO L.P. Prior to rved as Co-Sub- ement, Inc., Lee Annual Portfolio nt Management, Funds except the ortfolio plus (ii) a expenses”) paid by enses”) paid by the l Management, Inc. e paid by the ortfolio.” above. age commissions in invested cash. Those own in the chart ement, L.P. served as he table above, due to tage of the applicable roviding such services. AST Hotchkis & Wiley nderlying Portfolios are ctly by investors in the d the number reflected ach Underlying Portfolio s: (i) the 0.15% t 10 Portfolio, the Global ement, Inc., Lee Munder g portfolio and, “Service ors in the Portfolio. Each he Distribution Plan was costs that are included as ghted average estimate rectly paid by an Asset at any time. In addition, the ectly paid by the Portfolio is t advisers and/or distributors estimate was calculated information for the Portfolios. ligation to waive advisory fees t arrangements from which the . s as approved by the Fund’s Board of es other than management fees (“other other than management fees (“other exp ts. In determining the advisor’s ob using the management fee rates shown in the chart n in the chart above. Descriptions of the types of ST AllianceBernstein Managed Index 500 Portfolio. e see the prospectus and statement of additional with J.P. Morgan Investment Management, Inc. and Hotchkis & Wiley Ca , LLP became Co-Sub-advisors of the Portfolio. Prior to December 5, 200 ong with Salomon Brothers Asset Management, Inc., J.P. Morgan Investme hart for the Portfolio includes: (i) that 0.10% management fee paid by the P Salomon Brothers Asset Management, Inc., J.P. Morgan Investment Manag ios, which are borne indirectly by investors in the Portfolio. The wei permit an affiliate of the Trust’s Investment Managers to receive broker penses.” For more information see the prospectus for each underlyin imburse expenses of Series I shares to the extent necessary to limit Total lios is calculated based on the percentage of the Portfolio invested in e lio include: (i) an estimate of expens vestment Management, Inc. and Hotchkis & Wiley Capital Management, LLC se include: (i) an estimate of expenses h they compensate us for providing ongoing services in lieu of the Trust p advisor of the Portfolio. Prior to December 5, 2005, Alliance Capital Manag be paid by the Underlying Portfolios, which are borne indirectly by invest ypes of costs that are included as other expenses for the Portfolio and the U f the Portfolio. Prior to December 5, 2005, J.P. Morgan Investment Manag penses paid by the Underlying Portfolios is calculated based on the percen e 12b-1 Plan at any time. On May 1, 2003, 12b-1 payments were suspended for all , and could cause the Total Annual Portfolio Operating Expenses to excee able insurance products. Many of the Portfolios and/or their investmen lios are set forth in the prospectus for the Asset Allocation Portfolios anagement fee shown in the chart for each Asset Allocation Portfolio include re AST Portfolios (the “Underlying Portfolios”). The only management fee di ther expenses to be paid by the Underlying Portfolios, which are borne indire s where the Fund or its transfer agent has deposit accounts in which it holds un ctly by investors in the Asset Allocation Portfolio. Each weighted average tment managers plus (ii) a weighted average estimate of the management fees to b umed effective May 1, 2004 for the Target Managed VIP Portfolio, the Dow Dar tal Management, LLC served as Sub-advisor of the Portfolio, then named the “ and to use these commissions to promote the sale of shares of the Portfolio. T erged into the AST Neuberger Berman Mid-Cap Growth Portfolio. s (“Arrangements”). These Arrangements are voluntary and may be terminated shares to 1.30% of average daily net asse other AST Portfolios (the “Underlying Portfolios”). The only management fee dir above for the year ended December 31, 2005 were less than the amounts shown in t lly pay because of an expense offset arrangement. Currently, the expense offse ) extraordinary items; (v) expenses related to a merger or reorganization expense limitation agreement is in effect through April 30, 2007. sdaq Target 15 Portfolio and the Value Line Target 25 Portfolio. ent Company LLC became a Sub-advisor of the Portfolio along with Goldman Sachs Asset Management Management, Inc. became the Sub-advisor of the Portfolio. Prior to December 5, 2005, Wells Capita ing Portfolio using the other expense rates show in each Underlying Portfolio as of December 31, 2005 tein Growth + Value Portfolio merged into the A llianceBernstein Large-Cap Growth Portfolio.” ore information regarding the Arrangements, pleas io, then named the “AST Gabelli All-Cap Value Portfolio.” served as Sub-advisors of the Portfolio. . The AST Global Allocation Portfolio invests primarily in shares of . The other expenses shown in the chart for the AST Global Allocation Portfo . The other expenses shown in the chart for each Asset Allocation Portfolio . Each Asset Allocation Portfolio invests primarily in shares of one or mo using the other expense rates shownset in forth the in chart the above. prospectus Descriptions for of the the Portfolio. t Asset Allocation Portfolio invested inother each expenses Underly for the Asset Allocation Portfolios and the Underlying Portfo a 0.10% fee paid to theweighted investment average managers. estimate The of management the fee managementwas shown fees calculated in paid based the by on c the the Underlying percentageabove. Portfol of the Portfolio invested in each Underlyingb Portfolio as of December 31, 2005 using the management fee rates sh Underlying Portfolios to the investment managers,based which on are the borne percentage indire of the Portfoliob invested Asset Allocation Portfolio plusAsset (ii) Allocation a Portfolio. weighted Each average weighted estimate average of estimate the of o the other ex the Portfolio plus (ii) aweighted weighted average average estimate of estimate the of other the expenses other paid expenses by to the Underlying Portfo Allocation Portfolio is a 0.15% feemanagement paid fee to to the be investment paid managers. by The the m Asset Allocation Portfolio to the inves The Funds’ Board of Trustees reserve the right to suspend payments under th The Fund’s advisor has contractually agreed to waive advisory fees and/or re Effective December 5, 2005, T. Rowe Price Associates, Inc. became the Sub- Effective December 5, 2005, the AST AlgerEffective All-Cap March Growth 20, Portfolio 2006, m Dreman Value Management LLC became a Sub-advisor al Effective December 5, 2005, Prudential Investment Effective March 20, 2006, Pacific Investment Managem Effective December 5, 2005, the AST AllianceBerns Effective March 20, 2006, Dreman Value Management LLC became a Sub-advisor along As noted above, shares of the Portfolios generally are purchased through vari Effective December 5, 2005, EARNEST Partners LLC and WEDGE Capital Management The total actual operating expenses for certain of the Portfolios listed Until November 18, 2004, the Trust had a Distribution Plan under Rule 12b-1 to Trustees; and (vi) expenses that theFund Fund may has benefit incurred but are did in not the actua form of credits that the Fund receives from bank and/or reimburse expenses, theabove: following (i) expenses interest; are (ii) not taxes; taken (iii) into dividend account expense on short sales; (iv Dividend Target 15 Portfolio, the S&P Target 24 Portfolio, the Na credits are used to pay certain expenses15: incurred by the Fund. The First Trust 10 Uncommon Values Portfolio. Payments under the 12b-1 Plan res Operating Expenses (excluding certain items discussed below) of Series I Sub-advisor of the Portfolio, then named the14: “AST A Capital Group and Integrity Asset Management 13: Munder Capital Group and Integrity Asset Management served as Sub-advisors o 11: served as Sub-advisor of the Portfolio. 12: Inc. and Lee Munder Capital Group. Between December 5, 2005 and March 20, 2006, 7: 5: 6: a Investors, Inc. served as Sub-advisor of the10: Portfol 8: March 20, 2006, Goldman Sachs Asset Management L.P. served as the sole Sub-advisor of the Portfolio, then named the “AST Goldman Sachs High Yield Bond P have entered into arrangements withAmounts us paid as by the a issuer Portfolio of under each those Annuity arrangements under are whic included under “Other Ex 1: 9: Management, LLC. Between December 5,advisors 2005 of and March the 20, Portfolio. 2006,Large-Cap Prior J.P. Value to Morgan Portfolio.” In December 5, 2005, Hotchkis & Wiley Capi 4: a connection with purchases andterminated sales effective of November securities 18, 2004. held by the Portfolios, 2: Fees payable to American Skandia,” later in this prospectus. fee waivers, reimbursement of expenses, andArrangements expense may offset be arrangement modified periodically. For m 3: t Total Annual e as the Fund’s e management fee nd VP Rising Rates os to limit the total ntain the Fund’s net e Index. As a result, % for assets under $500 es to exceed any expense nagement fee could range a particular fiscal year may is limited to the extent that d 1.47% for each of the other llion. ecover from the Portfolios any fees continued ark, the MSCI Emerging Markets Fre Total Actual Annual Total Actual Annual Portfolio Operating Expenses Portfolio Operating Expenses After Expense Reimbursement After Expense Reimbursement LLC that will allow First Trust to r Fund VP U.S. Government Plus and 1.78% for ProFu New Portfolio Name ontractually agreed to waive fees and reimburse expenses of the Portfoli ount all base fee breakpoints and performance fee adjustments, the ma und’s performance relative to its benchm itations may be terminated or revised. Amounts waived or reimbursed in sory and Management Services Fees and to reimburse other expenses to the exten 30, 2007 to waive fees and/or reimburse expenses to the extent necessary to mai ure and the management fee was lowered to 1.05%. Beginning January 1, 2007, th December 31, 2007. However, First Trust’s ability to recover such amounts age daily net assets. The breakpoint schedule for the Fund is as follows: 0.55 or the Fund’s management fee. The management fee charged to the Fund will declin ent with First Defined Portfolio Fund, illion in assets; 0.425% for the next $2 billion; and 0.40% for assets over $5 bi imbursement to the extent that recoupment will not cause the Portfolio’s expens rs the expense ratio and increases overall returns to investors. expense and extraordinary expense) to 1.37% for the First Trust 10 Uncommon Values Portfolio an erage daily net assets, exceed 1.98% (1.73% for Pro Target 25 1.47% 10 Uncommon Values 1.37% DART 10 1.47% ® ® SM Value Line Portfolio Name Old Portfolio Name Advantage VT Equity Income Wells Fargo Advantage VT Equity Income Wells Fargo Advantage VT Equity Income 1.00% Portfolio Name Target Managed VIPS&P Target 24The Dow 1.47% 1.47% First Trust Global Dividend Target 15Nasdaq Target 15Dow Target Dividend 1.47% 1.47% 1.47% a: The Adviser of Wells Fargo Variable Trust has committed through April b: In addition, the following name changes were made effective May 1, 2006: The Fund’s investment adviser has implemented a breakpoint schedule f For the period September 30, 2004 through December 31, 2007, First Trust has c Effective January 1, 2006, the Fund implemented a performance fee struct ProFund Advisors LLC has contractually agreed to waive Investment Advi assets grow and will continue to be based on a percentage of the Fund’s aver 20: million, 0.50% for the next $500 million in assets; 0.45% for the next $2 b 16: Summary of Contract Fees and Charges may be adjusted, on a quarterly basis, upward or downward depending on the F be repaid to ProFund Advisorslimitation LLC in within place at three that years time. of A19: the waiver or waiver reimbursement or lowe re operating expenses as shown. 17: waived or reimbursed during the threeit would year not period exceed of the January amount 1, reimbursed 2005 or through waived during such period. Portfolios’ average daily net assets. First Trust has entered into an agreem annual fund operating expenses (excluding brokerage beginning January 1, 2007, iffrom the 0.95% management at fee its were lowest calculated to taking 1.15% into18: at acc its highest. Opportunity) through December 31, 2006. After such date, any of the expense lim Portfolio Operating Expenses, as a percentage of av

AMERICAN SKANDIA ANNUITIES PROSPECTUS 14 AMERICAN SKANDIA ANNUITIES PROSPECTUS 15 IF YOU DOYOUR NOT ANNUITY: SURRENDER The examples are illustrativenot only — be they should consideredfuture expenses a of the representation underlyingtheir mutual of portfolios funds or — pastthan actual or expenses those willcombination be of shown optional less benefits thanthe if indicated examples in or you ifany you other allocate available elect Sub-accounts. Account Value to aExpense different Examples aresurrender provided the as Annuity follows:period; 1.) at 2.) if if the you you end annuitizeperiod; at and of the 3.) end the if oftable stated the you of stated do time accumulation time not valuesthis surrender appears Prospectus. your in Annuity. Appendix A A to 2 $2,686 $5,205$3,026 $542 $5,929 $1,619 $615 $2,686 $1,831 $5,205 $3,026 $5,929 727727 $2,855 $2,855 $5,594 $5,594 $581 $581 $1,727 $1,727 $2,855 $2,855 $5,594 $5,594 you own ASAP III or APEX II, you may not annuitize in the first Annuity Year. IF YOU ANNUITIZEEND YOUR OF ANNUITY THE AT APPLICABLE THE TIME PERIOD: (which are the maximum combination of 1 re available if you elect certain optional benefits. IF YOU SURRENDEREND YOUR OF ANNUITY THE AT APPLICABLE THE TIME PERIOD: 1 YR 3 YRS 5 YRS 10 YRS 1 YR 3 YRS 5 YRS 10 YRS 1 YR 3 YRS 5 YRS 10 YRS

Receive Credits?”)

There is no CDSC for ASLIf II. you See own “Summary XT6, of you Contract may Fees not and annuitize Charges” in for the the first CDSC Three schedule (3) for Annuity each Years; Annuity. if total purchase payment made during the first four Annuity years. total purchase payments made during the first four Annuity years Enhanced Beneficiary Protection Death Benefit optional benefit charges) operating expenses, and those expenses remain the same each year*

** The Credit that is applied to Purchase Payments received after the first Annuity Year is less than 6.5% (see “How do I • For the ASAP III example, the Loyalty Credit applies to the AnnuityAmounts and shown is in equal the to examples 0.50% of are* rounded to the Note: nearest Not dollar. all portfolios offered as Sub-accounts a • For the APEX II example, the Loyalty Credit applies to the Annuity and is equal to 2.75% of • For the XT6 example, the Credit applicable to the Annuity is 6.5% of the Purchase Payment** • You elect the Lifetime Five Income Benefit, the Highest Daily Value Death Benefit and the • No tax charge applies • You make no transfers, or other transactions for which we charge a fee • You make no withdrawals of Account Value • The maximum combination of optional benefit charges • You allocate all of your Account Value to the Sub-account with the maximum total annual • Annual Maintenance Fee The examples also assume the following for the period shown: • Contingent Deferred Sales Charge (when and if applicable) • Distribution Charge (if applicable) and Charges”: • Insurance Charge each Annuity as described in “Summary of Contract Fees The examples reflect the following fees and charges for investment has a 5% return each year. had you invested $10,000 in the Annuity and your would pay in expenses at the end of the stated time periods Below are examples for each Annuity showing what you other variable annuities. of investing in other American Skandia Annuities and/or of investing in one American Skandia Annuity with the cost These examples are intended to help you compare the cost Expense Examples APEX II $1,3461: 2: $2,357 $2,855 $5,594 N/A $1, ASAP III $1,217 $2,204 $3,136 $5,205 N/A $1,619 ASL IIXT6 $ 581 $1,479 $1,727 $2,647 $2,855 $3,698 $5,594 $6,121 $ 581 N/A $1, N/A AST Goldman Sachs is no longer offered as a , the SP William Blair Interna- is no longer offered as a Sub- the June 28, 2002 May 1, 2004, With respect to XT6, APEX II and ASL II: Effective as of the Either of these Sub-accounts may be offered to new Effective Owners at some future date; however,there at is the no present intention time, to dooffer so. or We close also this reserve Sub-account the to rightAnnuity all to prior Owners to that the owned close the date. tional Growth Portfolio (formerly the SPInternational Jennison Growth Portfolio) Sub-account under the Annuities, except astime follows: prior if to at May any 1, 2004Value you allocated had to any the portion SP of William yourSub-account, Blair Account you International may Growth continue to allocatemake Account transfers Value into and and/ or outtional of Growth the Sub-account, SP including William any Blair electronic Interna- transfer, funds dollar cost averaging, asset allocationrebalancing and programs. If you never hadAccount a Value portion allocated of to your the SPGrowth William Sub-account Blair prior International to May 1,your 2004 Annuity or on if or you after purchase MayAccount 1, Value 2004, to you the cannot SP allocate WilliamSub-account. Blair International Growth Small-Cap Value Portfolio account under the Annuities, except ason follows: or if prior at to any June time 28,Value 2002 allocated you to had the any AST portion Goldman ofSub-account, Sachs your you Small-Cap Account may Value continue to allocatemake Account transfers Value into and and/or out ofSmall-Cap the Value AST Sub-account, Goldman including Sachs any electronictransfer, funds dollar cost averaging, asset allocationprograms. and If rebalancing you never had aallocated portion to of the your AST Account Goldman Value Sachsaccount Small-Cap on Value or Sub- prior to JuneAnnuity 28, after 2002 June or 28, if 2002, you you purchaseto cannot your the allocate AST Account Goldman Value Sachs Small-CapAST Value Goldman Sub-Account. Sachs The Small-Cap Value Portfolionor is was not it available ever available under ASAP III. close of business The name of the advisor/sub-advisor for each Portfolio The Portfolios are not publicly traded mutual funds. They are WHAT ARE THE INVESTMENT OBJECTIVESPOLICIES AND OF THE PORTFOLIO? Each variable investment option is aSkandia Sub-account Life of Assurance American Corporation Variable Account“What B are (see Separate Accounts” for moreEach detailed Sub-account information). invests exclusively in onecarefully Portfolio. read You the should prospectus for anyinterested. Portfolio The in following which chart you classifies are eachbased of on the our Portfolios assessment of theirof investment this style Prospectus). (as The of chart the also date Portfolio’s provides investment a objective description (in of italics) each anddescription a of short, their summary key policies toPortfolios assist may you be in of determining interest which toany you. underlying There Portfolio is will no meet guarantee its that portfolios investment offered objective. as Not Sub-accounts all are availablecertain if optional you benefits. elect appears next to the description. Thoseincludes Portfolios the whose prefix name “AST” are PortfoliosTrust. of The American investment Skandia managers for ASTInvestment are Services, American Incorporated, Skandia a Prudential Financial Company, and Prudential Investments LLC, bothaffiliated of companies which of are American Skandia. However,advisor, a as sub- noted below, is engagedmanagement. to conduct day-to-day only available as investment options inand variable variable annuity life contracts insurance policies issuednies, by or insurance in compa- some cases, toment participants plans. in However, certain some qualified of retire- theaccounts Portfolios under available the as Annuities Sub- are managedadvisor by or the sub-advisor same as portfolio a retailsimilar mutual name fund that of the the Portfolio same may or inception. have Certain been retail modeled mutual after funds at may its modeled also after have a been Portfolio. While thepolicies investment of objective the and retail mutual fundssubstantially and similar, the the Portfolios actual may investments be willdegrees. differ Differences to in varying the performance ofexpected, the and funds in can some be cases couldcompare be the substantial. performance You of should a not publiclythe traded performance mutual of fund any with similarly namedSub-account. Portfolio Details offered about as the a investment objectives,risks, policies, costs and management of theprospectuses Portfolios for are the found underlying in mutual the funds.prospectus The and current statement of additional informationunderlying for Portfolios the can be obtained by calling 1-800-752-6342. Investment Options

AMERICAN SKANDIA ANNUITIES PROSPECTUS 16 AMERICAN SKANDIA ANNUITIES PROSPECTUS 17 ADVISOR/ PORTFOLIO SUB-ADVISOR AllianceBernstein L.P. American Skandia Investment Services, Inc./ Prudential Investments LLC AllianceBernstein L.P. Marsico Capital Management, LLC; T. Rowe Price Associates, Inc.; LSV Asset Management; William Blair & Company, L.L.C.; Pacific Investment Management Company LLC (PIMCO) AllianceBernstein L.P. 500. ® The Portfolio The Portfolio (AST AllianceBernstein Growth + seeks long-term growth of capital The Portfolio will invest, under normal The Portfolio will invest its assets in seeks long-term capital growth by seeks the highest potential total return seeks to outperform the Standard & Poor’s 500 : seeks a high level of absolute return. The Sub-advisor expects that the majority of the normally will invest in common stocksSub-advisor (and will securities take convertible a into value-oriented common approach,assets stocks). in invested The that in it securities will that try arefundamental to selling business keep at prospects. the reasonable The Portfolio’s valuations stocks in thatthose relation the of to Portfolio seasoned their will companies. normally invest in are AST AllianceBernstein Managed Index 500 Portfolio Value Portfolio merged into this Portfolio) Composite Stock Price Index (the “S&Pweightings 500”) of through common stock stocks selection relative resulting to in the different index. investing primarily in common stocks. Portfolio's assets will be invested inbe the undervalued. common Among stocks other of things, large theopportunities companies Portfolio created that seeks when appear to companies to identify are compelling undervaluednear-term buying on problems the or basis circumstances of even investor thoughThe reactions their Sub-advisor to long-term seeks prospects to remain identify sound. individualmay companies not with be earnings recognized growth by potential the that market at large. and income while attempting to avoid excessive fluctuations in market value. circumstances, at least 80% of its net assets in securities included in the S&P AST AllianceBernstein Core Value Portfolio: AST AllianceBernstein Growth & Income Portfolio: consistent with its specified level ofseveral risk other tolerance. American Skandia Trust Portfolios.Portfolio Under will normal devote market between conditions, 92.5% the toinvesting 100% primarily of in its equity net securities, assets andportfolios to 0% investing underlying to primarily portfolios 7.5% in of debt its securities net and assets money to market underlying instruments. invests primarily in a diversified portfoliodifferent of investment equity categories and and fixed investment income managers.combination securities The of across Portfolio traditional pursues and a non-traditional investment strategies. AST Aggressive Asset Allocation Portfolio: AST Advanced Strategies Portfolio: STYLE/ TYPE INVESTMENT OBJECTIVES/POLICIES Large Cap Blend Large Cap Value Large Cap Value Asset Allocation/ Balanced AST FUNDS Asset Allocation/ Balanced ADVISOR/ PORTFOLIO SUB-ADVISOR Cohen & Steers Capital Management, Inc. American Century Investment Management, Inc. American Century Investment Management, Inc. American Skandia Investment Services, Inc./ Prudential Investments LLC American Skandia Investment Services, Inc./ Prudential Investments LLC American Skandia Investment Services, Inc./ Prudential Investments LLC seeks capital growth and current seeks capital growth with current seeks the highest potential total return The Portfolio will invest its assets in The Portfolio will invest its assets in The Portfolio will invest its assets in seeks the highest potential total return seeks the highest potential total return seeks to maximize total return through investment The Portfolio invests primarily in common stocks that offer continued The Portfolio pursues its investment objective by investing, under The Sub-advisor intends to maintain approximately 60% of the Portfolio’s assets in normal circumstances, at least 80% ofUnder its normal net circumstances, assets the in Portfolio securities willequity of invest securities real substantially of estate all real issuers. of estate its companies,revenues assets i.e., from in a the the company ownership, that construction, derives financing,that at management has least or at 50% sale least of of 50% its real ofestate estate its investment or assets trusts in or real REITs. estate. Real estate companiesAST may Conservative include Asset real Allocation Portfolio: consistent with its specified level of risk tolerance. several other American Skandia Trust Portfolios.Portfolio Under will normal devote market between conditions, 57.5% the toinvesting 72.5% primarily of in its equity net securities, assets andportfolios to 27.5% investing underlying to primarily portfolios 42.5% in of debt its securities net and assets money to market underlying instruments. several other American Skandia Trust Portfolios.Portfolio Under will normal devote market between conditions, 72.5% the toinvesting 87.5% primarily of in its equity net securities, assets andportfolios to 12.5% investing underlying to primarily portfolios 27.5% in of debt its securities net and assets money to market underlying instruments. in real estate securities. several other American Skandia Trust Portfolios.Portfolio Under will normal devote market between conditions, 47.5% the toinvesting 62.5% primarily of in its equity net securities, assets andportfolios to 37.5% investing underlying to primarily portfolios 52.5% in of debt its securities net and assets money to market underlying instruments. AST American Century Income & Growthincome Portfolio: as a secondary objective. potential for capital growth, and may,stocks consistent that with offer its potential investment for objective, currentmanagement invest income. technique in The with Sub-advisor a utilizes goal a ofreturns quantitative building than an the equity S&P portfolio 500 that Indexattempting provides without to better taking create on a significant dividend additional yield risk that and will while beAST greater American than Century the Strategic S&P Balanced 500 Portfolio: income. Index. equity securities and the remainder inPortfolio’s bonds equity and and other fixed fixed income income investmentswill securities. will fluctuate Both fluctuate depending the in on value. the The performancemarket equity of and securities the economic companies conditions, that and issued investorbe them, confidence. affected general The primarily fixed by income rising investments or will falling interest ratesAST and Balanced the Asset credit Allocation quality Portfolio: ofconsistent the with issuers. its specified level of risk tolerance. AST Capital Growth Asset Allocation Portfolio: consistent with its specified level of risk tolerance. AST Cohen & Steers Realty Portfolio: STYLE/ TYPE INVESTMENT OBJECTIVES/POLICIES Asset Allocation/ Balanced Large Cap Value Asset Allocation/ Balanced Asset Allocation/ Balanced Asset Allocation/ Balanced Specialty Investment Options

AMERICAN SKANDIA ANNUITIES PROSPECTUS 18 AMERICAN SKANDIA ANNUITIES PROSPECTUS 19 ADVISOR/ PORTFOLIO SUB-ADVISOR Deutsche Asset Management, Inc. Deutsche Asset Management, Inc. Deutsche Asset Management, Inc. Federated Equity Management Company of Pennsylvania/ Federated Global Investment Management Corp. First Trust Advisors L.P. First Trust Advisors L.P. ® The Index. The ® Index. ® Value Index. The The Portfolio ® Value Index through active ® seeks long-term growth of The Portfolio pursues its objective, seeks capital growth. The Portfolio pursues its objective, under seeks long-term capital growth balanced by seeks maximum growth of investors' capital seeks maximum growth of investors' capital. seeks maximum growth of capital by investing Value Index, but which attempts to outperform the Russell ® The Portfolio normally invests approximately 65% of its total assets in Value Index. The Sub-advisor employs an investment strategy designed to ® Index, but which attempts to outperform the Russell 2000 Growth The Portfolio normally invests approximately 80% of its total assets in equity ® Value Index. ® maintain a portfolio of equity securitiesincluded which in approximates the the Russell market 2000 risk of those stocks Sub-advisor employs an investment strategy designedsecurities to which maintain approximates a the portfolio market of riskGrowth equity of those stocks included in the Russell 2000 AST DeAM Small-Cap Value Portfolio: 2000 AST Federated Aggressive Growth Portfolio: stock selection. Value Index, but which attempts to outperform the Russell 1000 AST DeAM Large-Cap Value Portfolio: primarily in the value stocks of larger companies. Sub-advisor employs an investment strategy designedsecurities to which maintain approximates a the portfolio market of risk equity of those stocks included in the Russell 1000 AST DeAM Small-Cap Growth Portfolio: from a portfolio of growth stocksunder of normal smaller circumstances, companies. by primarily investingequity at securities least of 80% small-sized of companies its included total in assets the in Russell the 2000 Growth Portfolio pursues its objective, under normalleast market 80% conditions, of by its primarily total investing assetsRussell at in 2000 the equity securities of small-sized companies included in the pursues its investment objective by investingare primarily traded in on the national stocks security of exchanges,counter-market. small NASDAQ Small companies stock companies that exchange will and be the definedsimilar over-theas to companies companies with in market the capitalizations Russellassets 2000 may Growth be Index. invested Up in to foreigncurrencies. 25% securities, of which the are Portfolio's typically net denominated in foreign AST First Trust Balanced Target Portfolio: AST First Trust Capital Appreciation Targetcapital. Portfolio: securities and 20% in fixed incomeportion securities. may Depending range on between market 75-85% conditions, andPortfolio the the allocates equity fixed its income assets portion across between a 15-25%. number The of uniquely specialized investment strategies. normal market conditions, by primarily investingequity at securities least of 80% large-sized of companies the included value in of the its Russell assets 1000 in the current income. equity securities and 35% in fixedequity income portion securities. may Depending range on between market 60-70%The conditions, and Portfolio the the allocates fixed its income assets portion acrossstrategies. between a 30-40%. number of uniquely specialized investment STYLE/ TYPE INVESTMENT OBJECTIVES/POLICIES Small Cap Value Small Cap Growth Large Cap Value Small Cap Growth Asset Allocation/ Balanced Asset Allocation/ Balanced ADVISOR/ PORTFOLIO SUB-ADVISOR Prudential Investments LLC Goldman Sachs Asset Management, L.P. Goldman Sachs Asset Management, L.P. Goldman Sachs Asset Management, L.P. Goldman Sachs Asset Management, L.P.; Pacific Investment Management Company LLC (PIMCO) The The seeks a high seeks growth of capital in a seeks long-term capital appreciation. seeks long-term capital growth. . Realization of income is not a significant The Portfolio seeks to achieve its seeks to obtain the highest potential total return continued (formerly AST Goldman Sachs High Yield Portfolio): investment consideration and any income realizedwill on be the incidental Portfolio’s to investments, the therefore, Portfolio’sinvesting objective. primarily The in Portfolio equity will securities pursue ofpotential its companies to objective that achieve by the capital Sub-advisor appreciation believes overits have the investment the long-term. objective The by Portfolio investing, seeks undercompanies to normal that achieve circumstances, are in considered approximately by 30-45 the Sub-advisor to be positioned for long-term growth. AST Global Allocation Portfolio: consistent with a specified level ofinvestment risk objective tolerance. by investing in severalThe other Portfolio AST intends Portfolios its ("Underlying strategy Portfolios"). ofresult investing in in investment combinations diversification of that Underlying annumerous Portfolios investor investments. to could It otherwise is achieve expected only thatwill by the be holding investment diversified. objectives of such AST Portfolios AST Goldman Sachs Concentrated Growth Portfolio: manner consistent with the preservation of capital AST Goldman Sachs Mid-Cap Growth Portfolio: Portfolio pursues its investment objective, byfor investing their primarily growth in potential, equity and securities normallymedium selected invests capitalization at companies. least For 80% purposes of ofare the the those value Portfolio, whose of medium-sized market its companies capitalizations assets (measured in range at of the companies time in of the investment) Russellindividual fall Mid companies within Cap with the Growth earnings Index. growth The potentialmarket Sub-advisor that at seeks may large. to not identify be recognized by the AST Goldman Sachs Small-Cap Value Portfolio: The Portfolio will seek its objectiveare through believed investments to primarily be in undervalued equity inthat securities the are that marketplace. small-sized, The based Portfolio on primarily thenon-fundamental seeks value policy companies of to their invest, outstanding under stock. normalits The circumstances, assets Portfolio at in will least small have 80% capitalization a of companies.time the The the value 80% Portfolio of investment invests requirement its applies assets.companies at The as the Portfolio companies generally with defines a small capitalizationregarding capitalization of limited $4 availability billion of or this less. option.) (see information above AST High Yield Portfolio level of current income and mayPortfolio also invests, consider under the normal potential circumstances, for atborrowings capital least for appreciation. 80% investment of purposes its (measured net atincome assets time securities plus of that, any purchase) at in the high timesecurities yield, of are fixed- purchase, commonly are referred non-investment to grade as securities. “junk Such bonds”. STYLE/ TYPE INVESTMENT OBJECTIVES/POLICIES Asset Allocation/ Balanced Large Cap Growth Mid Cap Growth Small Cap Value Fixed Income Investment Options

AMERICAN SKANDIA ANNUITIES PROSPECTUS 20 AMERICAN SKANDIA ANNUITIES PROSPECTUS 21 ADVISOR/ PORTFOLIO SUB-ADVISOR J.P. Morgan Investment Management Inc. Dreman Value Management LLC, Hotchkis and Wiley Capital Management, LLC; J.P. Morgan Investment Management Inc. Lord, Abbett & Co. LLC LSV Asset Management The Portfolio seeks to To pursue its objective, . The Portfolio pursues its seeks long-term capital growth by seeks high current income and the seeks capital growth (formerly AST Hotchkis and Wiley Large-Cap Value . The Portfolio invests, under normal circumstances, at least 80% of its net seeks current income and long-term growth of income, as well as capital Portfolio): appreciation assets in common stocks of largestocks cap that U.S. have companies. a The high Portfolio cashrelative focuses dividend value on or within common payout sectors. yield relative to the market or that possess AST JPMorgan International Equity Portfolio: investing in a diversified portfolio ofmeet international its equity objective securities. by investing, undera normal diversified market portfolio conditions, of at equity least securitiesnon-U.S. 80% of countries of companies and its located emerging assets or markets in operating ofbe in the traded developed world. on The a equity recognized securities foreignmarket will securities in ordinarily exchange the or country traded where in thecountries a issuer including foreign is the over-the-counter principally United based, States. but may also beAST traded Large-Cap in Value other Portfolio AST Lord Abbett Bond-Debenture Portfolio: opportunity for capital appreciation to producethe a Portfolio high will total invest, return. under normalin circumstances, fixed at income least securities 80% and of normallydebt the invests securities, value primarily securities of in convertible its high into assets yield commonmay and stock find investment and good grade preferred value stocks. in The highbonds," Portfolio yield and securities, frequently sometimes may called have "lower-rated moreleast bonds" than 20% or half of "junk of the its Portfolio's assets assetsdebt invested must securities, in be U.S. those invested Government securities. in securities At any andmake combination cash significant of equivalents. investments investment The in grade Portfolio mortgage-backed may securities.to also Although maintain the a Portfolio weighted expects average maturityrestrictions in on the the range overall of Portfolio five or20% to on of twelve individual its years, securities. net there The assets are Portfolio in no may equity invest securities. upAST to LSV International Value Portfolio: objective by primarily investing at leastsecurities 80% of of companies the in value developed of non-U.S.EAFE its countries Index. assets that The in are target the represented of equity in this(net the Portfolio of MSCI is foreign to dividend outperform withholding the taxes)proprietary unhedged of quantitative US the models Dollar MSCI to total EAFE manage return Index. theapproach The Portfolio combined Sub-Advisor in with uses a overall bottom-up portfolio security risk selection management. STYLE/ TYPE INVESTMENT OBJECTIVES/POLICIES International Equity Large Cap Value Fixed Income International Equity ADVISOR/ PORTFOLIO SUB-ADVISOR Marsico Capital Management, LLC Massachusetts Financial Services Company Massachusetts Financial Services Company EARNEST Partners LLC/WEDGE Capital Management, LLP Prudential Investment Management, Inc. Neuberger Berman Management Inc. Under seeks to Income realization is not Under normal circumstances the (AST Alger All-Cap Growth Portfolio . Under normal market conditions, the seeks capital growth. seeks capital growth. seeks high current income while maintaining high levels of (formerly AST Gabelli All-Cap Value Portfolio): continued seeks long-term capital growth and future income. seeks capital growth : . The Portfolio has a non-fundamental policy to invest, under normal The Portfolio attempts to accomplish its objective by maintaining a dollar-weighted AST Marsico Capital Growth Portfolio: AST MFS Global Equity Portfolio: Portfolio invests at least 80% of(including its issuers assets in in developing equity countries). securities Thesecurities of Portfolio of U.S. generally companies and seeks with foreign to relatively issuers purchase largewhich market they capitalizations are relative traded. to the market in AST MFS Growth Portfolio: an investment objective and any incomewill realized be on incidental the to Portfolio’s the investments, Portfolio’sinvesting therefore, objective. primarily The in Portfolio common will stocks pursue ofinvestments its larger, for objective more the by established Portfolio, companies. the In Sub-advisoreconomic selecting uses analysis an with approach "bottom that up" combines stocksectors, "top selection. industries down" The and "top companies down" that approach mayobserved. identifies benefit The from Sub-advisor the then trends looks the forpotential Sub-advisor individual that has companies may with not earnings be growth recognizedselection by process. the The market Portfolio at will large, normallycommon utilizing hold stocks. a a The "bottom core Portfolio up" position may stock of holdtimes between a when 35 limited the and number Portfolio 50 of manager additional isresponding common accumulating to stocks new exceptional at positions, market phasing conditions. out existing or normal market conditions, the Portfolio investsstocks at and least related 80% securities, of such its asreceipts, total preferred of assets stocks, companies in convertible that common securities the and Sub-advisorlong-term depositary believes growth. offer The better Sub-advisor than seeks average toconsiders prospects purchase well-run for securities and of poised companies for that growth.assets it The in Portfolio foreign may securities. invest up to 35% ofAST its Mid-Cap net Value Portfolio provide capital growth by investing primarilyundervalued in mid-capitalization stocks that appearcircumstances, to at be least 80% of the value of itsAST net Money assets Market in Portfolio: mid-capitalization companies. liquidity. average maturity of not more thaneffective 90 maturities days of and not by more investing than in 397 securities days. whichAST have Neuberger Berman Mid-Cap Growth Portfolio merged into this Portfolio) Portfolio primarily invests at least 80%companies. of The its Sub-adviser net looks assets for in fast-growingevolving the companies industries. common that stocks are of in mid-cap new or rapidly STYLE/ TYPE INVESTMENT OBJECTIVES/POLICIES Large Cap Growth International Equity Large Cap Growth Mid Cap Value Fixed Income Mid Cap Growth Investment Options

AMERICAN SKANDIA ANNUITIES PROSPECTUS 22 AMERICAN SKANDIA ANNUITIES PROSPECTUS 23 ADVISOR/ PORTFOLIO SUB-ADVISOR Neuberger Berman Management Inc. Pacific Investment Management Company LLC (PIMCO) Pacific Investment Management Company LLC (PIMCO) American Skandia Investment Services, Inc./ Prudential Investments LLC Eagle Asset Management/ Neuberger Berman Management Inc. Lee Munder Investments, Ltd; J.P. Morgan Investment Management Inc.; Salomon Brothers Asset Management Inc; Dreman Value Management LLC . Under normal Index at the time of The Portfolio will have ® The Portfolio pursues The Portfolio will invest in . The Portfolio will invest in a seeks capital growth The Portfolio will invest its assets in seeks the highest potential total return seeks to maximize total return consistent seeks to maximize total return consistent with seeks long-term capital growth. seeks to provide long-term capital growth by investing market conditions, the Portfolio primarily investscommon at stocks least of 80% mid-cap of companies. its Formarket net purposes capitalizations assets of that in the fall the Portfolio, within companies the with range equity of the Russell Midcap with preservation of capital and prudenta investment diversified management. portfolio of fixed-income securitiesduration of of varying the maturities. Portfolio The generally average willthe portfolio vary Sub-advisor’s within forecast a for one- interest to rates. three-year time frame based on several other American Skandia Trust Portfolios.Portfolio Under will normal devote market between conditions, 27.5% the toinvesting 42.5% primarily of in its equity net securities, assets andportfolios to 57.5% investing underlying to primarily portfolios 72.5% in of debt its securities net and assets money to market underlying instruments. AST Neuberger Berman Mid-Cap Value Portfolio: investment are considered mid-cap companies. Someinvested of in the the Portfolio's securities assets of may large-capthe be companies Portfolio’s as value-oriented well investment as approach, in thecompanies small-cap Sub-advisor whose companies. looks stock Under for prices well-managed are undervaluedinvestors and realize that their may worth. rise in price before other AST PIMCO Limited Maturity Bond Portfolio: AST PIMCO Total Return Bond Portfolio: diversified portfolio of fixed-income securities ofduration varying of maturities. the The Portfolio average generally portfolio willthe vary Sub-advisor’s within forecast a for three- interest to rates. six-year time frameAST based Preservation on Asset Allocation Portfolio: consistent with its specified level of risk tolerance. AST Small-Cap Growth Portfolio: its objective by primarily investing inwhich the is common defined stocks as of a small-capitalization companylarger companies, with than a the market largest capitalization, capitalized at companymost the included recent time in 11-month of the period purchase, Russell (based no 2000 onthe Index month-end current during data) month. the plus the most recent data during AST Small-Cap Value Portfolio: primarily in small-capitalization stocks that appear to be undervalued. preservation of capital and prudent investment management a non-fundamental policy to invest, underof normal its circumstances, net at assets least in 80% smallthat of capitalization appear the stocks. to value The be Portfolio undervalued. will focus on common stocks STYLE/ TYPE INVESTMENT OBJECTIVES/POLICIES Mid Cap Value Fixed Income Fixed Income Asset Allocation/ Balanced Small Cap Growth Small Cap Value ADVISOR/ PORTFOLIO SUB-ADVISOR T. Rowe Price International, Inc. T. Rowe Price Associates, Inc. T. Rowe Price Associates, Inc. T. Rowe Price Associates, Inc. The The The Portfolio takes a growth seeks long-term capital growth (formerly AST AllianceBernstein seeks a high level of total return by seeks to provide high current income and continued seeks long-term growth of capital by investing predominantly in the Portfolio will invest at least 80%quality of bonds its issued total or assets guaranteed in byforeign fixed U.S. authorities, income or provinces securities, foreign and including governments municipalities high or asbonds their well and agencies as mortgage and investment and by grade asset-backed corporate securitiesgenerally of invests U.S. in and countries foreign where issuers. theexchange The combination rates Portfolio of appears fixed-income attractive, returns or, and ifadvisor currency the believes currency that trend the is currency unfavorable, riskalso where can invest the be up Sub- minimized to through 20% hedging. ofbonds The its ("junk Portfolio assets bonds"). may in In the addition, aggregate themortgage-backed in Portfolio (including below may derivatives, investment-grade, invest such high-risk up as to collateralizedstripped 30% mortgage mortgage of obligations securities) its and and assets asset-backed in securities. AST T. Rowe Price Large-Cap GrowthLarge-Cap Portfolio Growth): equity securities of a limited numberthat of are large, judged carefully likely selected, to high-quality achieveapproach U.S. superior to companies earnings investment growth. selection and normallycommon invests stocks at of least large 80% cap of companies. its net assetsAST in T. the Rowe Price Natural Resourcesprimarily Portfolio: through the common stocks of(such companies as that energy own products, or precious develop metalsThe natural and Portfolio resources forest normally products) invests and primarily other (atstocks basic least of commodities. 80% natural of resource its companies total whoseaccelerating assets) earnings inflation. in and The the tangible Portfolio common assets looks could forproduction, benefit companies to from that maintain have superior the exploration ability programspotential to and to expand production accumulate facilities, new and resources. the AtU.S. least securities, 50% up of to Portfolio 50% assets of will total be assets invested also in may be invested in foreign securities. capital growth by investing in high-quality foreign and U.S. dollar-denominated bonds. Portfolio normally invests approximately 60% ofin its fixed total income assets securities. in This equity mixmarkets. securities may The and vary Sub-advisor 40% depending concentrates on common the stockestablished sub-advisor’s investments companies, outlook in but for larger, the the more Portfolio maywith include good small growth and prospects. medium-sized The companies fixedamong income investment portion grade of securities, the high Portfolio yieldsecurities will or and be "junk" cash allocated bonds, reserves. foreign high quality debt AST T. Rowe Price Global Bond Portfolio: investing primarily in a diversified portfolio of fixed income and equity securities. AST T. Rowe Price Asset Allocation Portfolio: STYLE/ TYPE INVESTMENT OBJECTIVES/POLICIES Large Cap Growth Specialty Fixed Income Asset Allocation/ Balanced Investment Options

AMERICAN SKANDIA ANNUITIES PROSPECTUS 24 AMERICAN SKANDIA ANNUITIES PROSPECTUS 25 ADVISOR/ PORTFOLIO SUB-ADVISOR Evergreen Investment Management Company, LLC William Blair & Company, L.L.C. A I M Advisors, Inc. A I M Advisors, Inc. A I M Advisors, Inc. A I M Advisors, Inc. seeks The Portfolio The Portfolio invests at least 75% seeks long-term capital seeks capital growth. The Portfolio normally invests at least 80% of its net assets in Growth Index, measured at the time of purchase). The ® seeks long-term capital growth. . The Portfolio pursues its objective by normally investing at least The Portfolio normally invests at least 80% of its net assets in the The Portfolio invests primarily in stocks of large and medium-sized companies Growth Index at the time of purchase. seeks capital growth. (formerly AIM V.I. Health Sciences Fund) ® Growth Index as a key factor in selecting investments. ® remaining portion of the Portfolio's assetsPortfolio's may managers be employ invested a in growth-style companies ofof of equity companies any management that size. and have The will demonstrated purchase earnings,believe stocks asset are values not or yet growth reflected potential inearnings which the growth they stock’s above market the price. average The earnings2000 Portfolio’s growth managers of consider companies included in the Russell the equity securities and equity-related instrumentsservices of sector. companies These involved companies in include, the butcompanies, financial are investment not and limited miscellaneous to, industries, banks, andcompanies. insurance suppliers to financial services AST William Blair International Growth Portfolio: AIM Variable Insurance Funds — AIMlong-term V.I. capital Dynamics growth Fund — Series65% I of shares: its assets in commonMidcap stocks of mid-sized companies that are included inAIM the Variable Russell Insurance Funds — AIMshares: V.I. Financial Services Fund — Series I AIM Variable Insurance Funds — AIMshares: V.I. Global Health Care Fundnormally — invests Series at I least 80% ofcompanies. its net assets in securities of health careAIM industry Variable Insurance Funds — AIMseeks V.I. capital Technology growth. Fund — Series I shares: Evergreen VA Growth: located in countries included in theEx-U.S. Morgan Index. Stanley Under Capital normal International market All conditions,assets Country the in World portfolio equity invests securities. at The least Portfolio'sthan 80% assets six of normally different its will countries net be and allocated willindustry. among not The not concentrate Portfolio fewer investments seeks in companies any thatprofitability particular historically and have quality had relative superior to growth, localindustry markets worldwide, and and relative that to are companies expected within to the continue same such performance. equity securities and equity-related instruments ofindustries. companies These engaged include, in but technology-related are notsoftware, limited semiconductors, to, telecommunications various equipment applied and technologies, servicescompanies hardware, and in service-related information technology. appreciation. of its assets in common stockswhose of market small- capitalizations and fall medium-sized within companies thetracked (i.e., market by companies capitalization the range Russell of 2000 the companies STYLE/ TYPE INVESTMENT OBJECTIVES/POLICIES International Equity Mid Cap Growth Specialty Specialty Specialty Small Cap Growth ADVISOR/ PORTFOLIO SUB-ADVISOR First Trust Advisors L.P. Evergreen Investment Management Company, LLC Evergreen Investment Management Company, LLC First Trust Advisors L.P. First Trust Advisors L.P. First Trust Advisors L.P. . The Portfolio The Portfolio seeks to The Portfolio seeks to achieve The Portfolio invests primarily, and seeks long-term capital growth and secondarily, seeks to provide above-average capital appreciation continued seeks to provide above-average total return. seeks long-term capital growth. seeks to provide above-average total return. seeks to provide above-average total return. The Portfolio normally invests 80% of its assets in equity securities issued 10 Uncommon Values: on or about the applicable stock selection date through a multi-step process. ® Target 15: ® ® Target 24: ® achieve its objective by investing inhave common the stocks potential issued for by capital companies appreciation. thatof The are fifteen Portfolio expected companies invests to selected primarily from in a the100 pre-screened common Index subset stocks of the stocks included in the Nasdaq- under normal conditions substantially all ofconvertible its into assets, common in stocks common of stocks U.S.Portfolio's and companies managers securities across employ all a market growth capitalizations. stylestocks The of of equity companies management. that "Growth" the stocks Portfolio'sfrom are managers steady believe to have accelerated anticipated growth. earnings Theforeign ranging Portfolio securities. may invest up to 25% of its assets in its objective by investing in commoncapital stocks appreciation. issued The by Portfolio companies invests that primarily havecompanies in the selected the potential from common for a stocks subset of of twenty-four Composite the Stock stocks Price included Index. in The the subset Standardeconomic of & sectors stocks Poor’s of will 500 the be S&P taken 500 from Index each based of on the the eight sector's largest market capitalization. Evergreen VA International Equity: modest income. by established, quality, non-U.S. companies locatedmay in purchase countries across with all developed market markets capitalizations.of and The its Portfolio assets normally in invests securities at ofU.S.). least companies The 65% in Portfolio at may least also three investgrowth different in and countries emerging value (other markets. opportunities, than The and the Portfolio’s thedividends managers Portfolio paid seek intends by both to its seek equity modest holdings. income from Evergreen VA Omega: S&P First Trust The Portfolio seeks to achieve itsselected objective by by the investing Investment primarily Policy in Committeewith the of the ten Lehman assistance common Brothers of stocks Inc. the ("Lehman Researchhave Brothers") Department the of greatest Lehman potential Brothers for which, capitalin in appreciation the their during Portfolio opinion the are next adjusted year. annuallyof The on Lehman stocks or Brothers. included about July 1st in accordance withGlobal the Dividend selections Target 15: seeks to achieve its objective byexpected investing to in provide common income stocks and issued toinvests by have primarily companies the in that potential the are for common capital stocksthe appreciation. of Financial The the Times Portfolio companies Industrial which Ordinary are ShareThe components Index Portfolio of ("FT primarily the Index") consists DJIA, and of the commonshare Hang stocks stock Seng of prices Index. the of five the companies tenrespectively, with companies that the in have lowest each the per of highest the dividendapplicable DJIA, yield stock FT in selection Index the date. and respective Hang index Seng on Index, or aboutNasdaq the STYLE/ TYPE INVESTMENT OBJECTIVES/POLICIES International Equity Specialty Specialty Specialty Specialty Specialty Investment Options

AMERICAN SKANDIA ANNUITIES PROSPECTUS 26 AMERICAN SKANDIA ANNUITIES PROSPECTUS 27 ADVISOR/ PORTFOLIO SUB-ADVISOR First Trust Advisors L.P. Gartmore Global Asset Management Trust/Gartmore Global Partners ProFund Advisors LLC First Trust Advisors L.P. First Trust Advisors L.P. First Trust Advisors L.P. ® with SM The Portfolio The Portfolio The Portfolio seeks to . The Portfolio seeks to DART 5, the European SM bases their rankings on a long- ® Index. ® which have recently exhibited certain positive financial ™ seeks to provide above-average total return. Under normal market conditions, investments are maintained investment strategy is based. seeks long-term capital appreciation, under normal conditions ranks 1,700 stocks of which only 100 are given their #1 ranking for seeks to provide above-average capital appreciation. Target 15, the S&P Target 24, the Target Small Cap and the Value ® seeks to provide above-average total return. seeks to provide above-average total return ® seeks daily investment results, before fees and expenses, that Target 25: which measures Value Line’s view of their probable price performance during Target Dividend: DART 10: ® ™ SM SM Target 25. ® correspond to the daily performance of the S&P 500 ProFund VP Bull: by investing at least 80% ofworld’s its developing total economies. assets in stocks of companies of any size based in the seeks to achieve its objective by investing in 25 of the 100 common stocks that Value Line GVIT Developing Markets: in at least six countries atof all them. times and no more than 35% of total assets in any single one term trend of earnings, prices, recent earnings, price momentum, and earnings surprise. seeks to achieve its objective byexpected investing to in provided common income stocks and issued toinvests by have primarily companies the in that potential the are for 20 capital common appreciation. stocks The from Portfolio the Dow Jones Select Dividend Index attributes as of the close ofstep business process. on Value the Line applicable stockTimeliness, selection date through a multi- the next 6 to 12 months relative to the others. Value Line gives a #1 ranking for Timeliness Target 20, the Nasdaq Target Managed VIP: Line The Dow the best overall ranking on bothprice-to-book the ratio change as in of return the on closedate. assets of over business the on last or 12 about months the and applicable stockThe selection Dow achieve its objective by investing into common provide stocks income issued and by to companies haveprimarily that the in are potential the expected for common capital stocks appreciation. ofcombined The the dividend Portfolio ten yields invests companies and in buyback the ratios DJIA on that or have aboutValue the the Line highest applicable stock selection date. achieve its objective by investing inmodel common based stocks on of six companies uniquely that specialized are strategies identified — by The a Dow specified factor. The investment strategy of some of the portfolios may magnify (both positively and Each ProFund VP portfolio described below pursues an investment strategy that seeks to provide daily Owners who engage a financial advisor to allocate their account value using a strategic or tactical asset allocation strategy invest in these portfolios. The Portfolios are arranged based on the index on which its investment results, before fees and expenses, that match a widely followed index, increased by a specified negatively) the daily investment results of the applicable index. It is recommended that only those Annuity factor relative to the index, or that match the inverse of the index or the inverse of the index multiplied by a STYLE/ TYPE INVESTMENT OBJECTIVES/POLICIES Specialty International Equity Specialty Specialty Specialty Specialty ADVISOR/ PORTFOLIO SUB-ADVISOR ProFund Advisors LLC ProFund Advisors LLC ProFund Advisors LLC ProFund Advisors LLC ProFund Advisors LLC If . ® ® If If ProFund VP Index. . ® ® If ProFund VP Index. when the Index rises on ® ® . ® Index when the Index rises on a ® continued seeks daily investment results, before fees and expenses, that seeks daily investment results, before fees and expenses, that seeks daily investment results, before fees and expenses, that when the Index declines on a given day. Conversely, its net asset value seeks daily investment results, before fees and expenses, that ® seeks daily investment results, before fees and expenses, that includes 100 of the largest non-financial domestic and international issues listed ® rebalancing occurs on an annual, quarterly and ongoing basis. Index is a measure of large-cap U.S. stock market performance. It is a full free float-adjusted ProFund VP Short OTC: correspond to the inverse (opposite) of the daily performance of the NASDAQ-100 Index UltraBull is successful in meeting itstwice objective, as its much, net on asset a value percentage should basis, gain as approximately the S&P 500 ProFund VP Short OTC is successfulapproximately in the meeting same its amount, objective, on its aNASDAQ-100 net percentage Index asset basis, value as should any gain decreaseshould in lose the approximately the same, onwhen a the percentage Index basis, rises as on any a increase given in day. theProFund Index VP UltraOTC: correspond to twice (200%) the dailyUltraOTC performance is of successful the in NASDAQ-100 meeting Index itstwice objective, as its much, net on asset a value percentagea should basis, given gain as day. approximately the Conversely, NASDAQ-100 its Index netpercentage asset basis, value as should the lose Index approximately when twice the as Index much, declines on on a a given day. ProFund VP OTC: correspond to the daily performance of the NASDAQ-100 Index ProFund VP Bear: correspond to the inverse (opposite) ofProFund the VP daily Bear performance is of successful the inapproximately S&P meeting the 500 its same objective, amount, its on net aIndex asset percentage when value basis, the should as Index gain any declines decrease onapproximately in a the the given same, S&P day. on 500 Conversely, a its percentagerises net basis, on asset as a value any given should increase day. lose in the Index whenProFund the VP Index UltraBull: correspond to twice (200%) the daily performance of the S&P 500 given day. Conversely, its net assetpercentage value basis, should as lose the approximately Index twice when as the much, Index on declines a on a given day. ® capitalization and financial viability. Reconstitution occurs both on a quarterly and ongoing basis. The Index is calculated under a modified capitalization-weighted methodology. Reconstitution and Index Committee through a non-mechanical process that factors criteria such as liquidity, price, market market capitalization weighted index of 500 U.S. operating companies and REITS selected by an S&P U.S. on the NASDAQ Stock Market. To be eligible for inclusion companies cannot be in bankruptcy proceedings The NASDAQ-100 Index and must meet certain additional criteria including minimum trading volume and "seasoning" requirements. The S&P 500 STYLE/ TYPE INVESTMENT OBJECTIVES/POLICIES Specialty Specialty Specialty Specialty Specialty Investment Options

AMERICAN SKANDIA ANNUITIES PROSPECTUS 28 AMERICAN SKANDIA ANNUITIES PROSPECTUS 29 ADVISOR/ PORTFOLIO SUB-ADVISOR ProFund Advisors LLC ProFund Advisors LLC ProFund Advisors LLC ProFund Advisors LLC when ® ® If If . ® Index. ® seeks daily investment results, before fees and expenses, seeks daily investment results, before fees and expenses, seeks daily investment results, before fees and expenses, seeks daily investment results, before fees and expenses, that both on a quarterly and ongoing basis. membership requirements may be added on a quarterly basis. If ProFund VP Short Mid-Cap is successful in meeting its objective, its net asset . If ProFund VP Short Small-Cap is successful in meeting its objective, its net asset ® value should gain approximately the samein amount, the on S&P a MidCap percentage 400 basis, Indexasset as when value any the should decrease Index lose declines approximately on theincrease a same in given amount, the day. on Index Conversely, a when its percentage the net basis, Index as rises any on a given day. ProFund VP UltraMid-Cap is successful ingain meeting approximately its twice objective, as its much, net onwhen asset a the value percentage Index should basis, rises as on the aapproximately S&P given twice MidCap day. as 400 Conversely, much, Index its on net aon asset percentage a value basis, given should as day. lose the Index when the IndexProFund declines VP Short Mid-Cap: that correspond to the inverse (opposite)Index of the daily performance of the S&P MidCap 400 Index. value should gain approximately the samein amount, the on Russell a 2000 percentage Index basis, whenvalue as the should any Index lose decrease declines approximately on the a samethe given amount, Index day. on when Conversely, a the its percentage Index net basis, rises asset as on any a increase given in day. ProFund VP UltraMid-Cap: that correspond to twice (200%) the daily performance of the Russell 2000 correspond to twice (200%) the daily performance of the S&P MidCap 400 Index ProFund VP UltraSmall-Cap: ProFund VP UltraSmall-Cap is successful ingain meeting approximately its twice objective, as its much, net onthe asset a Index value percentage rises should basis, on as a the giventwice Russell day. as 2000 Conversely, much, Index its on net a asset percentage value basis, should as lose theProFund approximately Index VP when Short the Small-Cap: Index declines on a given day. that correspond to the inverse (opposite) of the daily performance of the Russell 2000 Index or approximately 8% of the total market capitalization of the Russell 3000 Index, which in turn annually. Securities are not replaced if they leave the index, however, new issue securities meeting other factors criteria such as liquidity, price, market capitalization and financial viability. Reconstitution occurs adjusted market capitalization weighted index of 400 U.S. operating companies and REITs. Securities are The S&P MidCap 400 Index is a measure of mid-size company U.S. stock market performance. It is a float- The Russell 2000 Index is a measure of small-cap U.S. stock market performance. It is an adjusted market represents approximately 98% of the investable U.S. equity market. All U.S. companies listed on the NYSE, capitalization weighted index containing approximately 2000 of the smallest companies in the Russell 3000 selected for inclusion in the index by the S&P U.S. Index Committee through a non-mechanical process that STYLE/ TYPE INVESTMENT OBJECTIVES/POLICIES AMEX or NASDAQ meeting an initial minimum ($1) price are considered for inclusion. Reconstitution occurs Specialty Specialty Specialty Specialty ADVISOR/ PORTFOLIO SUB-ADVISOR ProFund Advisors LLC ProFund Advisors LLC ProFund Advisors LLC ProFund Advisors LLC ProFund Advisors LLC ProFund Advisors LLC . . ® ® . ® . ® . ® seeks daily investment results, before fees and seeks daily investment results, before fees and expenses, seeks daily investment results, before fees and expenses, seeks daily investment results, before fees and expenses, seeks daily investment results, before fees and expenses, continued seeks daily investment results, before fees and expenses, The S&P SmallCap 600/Citigroup Growth Index is designed to provide a . ® as liquidity, price, market capitalization, financial viability, and public float. ProFund VP Large-Cap Growth: that correspond to the daily performance of the S&P 500/Citigroup Growth Index ProFund VP Mid-Cap Value: that correspond to the daily performance of theProFund S&P VP MidCap Mid-Cap 400/Citigroup Growth: Value Index that correspond to the daily performance of the S&P MidCap 400/Citigroup Growth Index comprehensive measure of small-cap U.S. equityfloat “growth” adjusted performance. market It capitalization is weighted an indexapproximately unmanaged comprised half of the stocks market representing capitalization ofidentified the as S&P being SmallCap on 600 the Index growth that end have of been the growth-value spectrum. ProFund VP Small-Cap Value: that correspond to the daily performanceThe of S&P the SmallCap S&P 600/Citigroup SmallCap Value 600/Citigroup Indexmeasure Value is of Index designed small-cap to U.S. provide equity a “value”market comprehensive performance. capitalization It weighted is index an comprised unmanaged ofthe float stocks market adjusted representing capitalization approximately of half the S&Pon SmallCap the 600 value Index end that of have the been growth-value identified spectrum. asProFund being VP Small-Cap Growth: expenses, that correspond to the dailyGrowth performance Index of the S&P SmallCap 600/Citigroup ProFund VP Large-Cap Value: that correspond to the daily performance of the S&P 500/Citigroup Value Index have been identified as being on the growth end of the growth-value spectrum. that have been identified as being on the value end of the growth-value spectrum. equity “growth” performance. It is an unmanaged float adjusted market capitalization weighted index The S&P 500/Citigroup Growth Index is designed to provide a comprehensive measure of large-cap U.S. The S&P SmallCap 600 Index is a measure of small-cap company U.S. stock market performance. It is a The S&P MidCap 400/Citigroup Value Index is designed to provide a comprehensive measure of mid-cap comprised of stocks representing approximately half the market capitalization of the S&P 500 Index that U.S. equity “value” performance. It is an unmanaged float adjusted market capitalization weighted index for inclusion in the index by an S&P committee through a nonmechanical process that factors criteria such comprised of stocks representing approximately half the market capitalization of the S&P MidCap 400 Index STYLE/ TYPE INVESTMENT OBJECTIVES/POLICIES float adjusted market capitalization weighted index of 600 U.S. operating companies. Securities are selected Large Cap Growth Mid Cap Value Mid Cap Growth Small Cap Value Small Cap Growth Large Cap Value Investment Options

AMERICAN SKANDIA ANNUITIES PROSPECTUS 30 AMERICAN SKANDIA ANNUITIES PROSPECTUS 31 ADVISOR/ PORTFOLIO SUB-ADVISOR ProFund Advisors LLC ProFund Advisors LLC ProFund Advisors LLC ProFund Advisors LLC ProFund Advisors LLC The Dow Jones The ProFunds Europe The Fund determines principal offices are located in the Asia/ The ProFunds Asia 30 Index, created by seeks daily investment results, before fees and expenses, seeks daily investment results, before fees and expenses, that seeks daily investment results, before fees and expenses, that seeks daily investment results, before fees and expenses, that correspond seeks daily investment results, before fees and expenses, that The Dow Jones U.S. Basic Materials Sector Index measures the performance of the company specific information and the overall composition of the Index. correspond to the daily performance of the Dow Jones U.S. Banks Index. that correspond to the daily performanceIndex. of the Dow Jones U.S.basic Basic materials Materials industry Sector of the U.S.production equity of market. aluminum, Component steel, companies non are ferrouschemicals, involved metals, forest in commodity products, the chemicals, paper specialty products, ascoal. well as the mining of precious metals and ProFund VP Asia 30: ProFund Advisors, is composed of 30Pacific companies region, whose excluding Japan, and whose securitiesNASDAQ are as traded depository on receipts U.S. or exchanges ordinary orAsia shares. on The 30 the component Index companies are in determined the annuallyweights ProFunds based are upon determined their based U.S. on dollar-traded the volume. Their modified market relative capitalizationProFund method. VP Europe 30: correspond to the daily performance of30 the Index, ProFunds created Europe by 30 ProFund Index. Advisors,are is located composed in of Europe companies and whose whoseas principal securities depositary offices are receipts traded or on ordinary U.S. shares.30 exchanges The Index or component are on companies determined the in annually NASDAQ the basedweights ProFunds upon are Europe their determined U.S. based dollar-traded on volume. a Their modified relative market capitalizationProFund method. VP Japan: correspond to the daily performance ofits the success Nikkei in 225 meeting Stock this Average. investmentwith objective the by daily comparing performance its of daily thethe return dollar-denominated United on Nikkei States. a 225 The given futures Fund day contracts seekscomponent traded to equities in provide in a the return Nikkei consistent 225 with Stock an Average investment hedged in to the U.S. dollars. ProFund VP Banks: U.S. Banks Index measures the performanceComponent of companies the include banking regional sector and of majorengaged the U.S. in U.S. domiciled a equity banks, wide market. savings rage and oftransmissions. loans, financial services, including retail banking, loans and money ProFund VP Basic Materials: to the daily performance of the ProFunds Asia 30 Index. Nihon Keizai Shimbun, Inc. is the sponsor of the Index. Companies in the Nikkei Index are reviewed annually. Emphasis is placed on maintaining the Index's historical continuity while keeping the Index The Nikkei 225 Stock Average Index (Nikkei Index) is a modified price-weighted index of the 225 most broad cross-section of Japanese industries and the overall performance of the Japanese equity market. The Nikkei Index is calculated from the prices of the 225 TSE First Section stocks selected to represent a composed of stocks with high market liquidity. The sponsor consults with various market experts, considers actively traded and liquid Japanese companies listed in the First Section of the Tokyo Stock Exchange (TSE). STYLE/ TYPE INVESTMENT OBJECTIVES/POLICIES Specialty International Equity Specialty Specialty Specialty ADVISOR/ PORTFOLIO SUB-ADVISOR ProFund Advisors LLC ProFund Advisors LLC ProFund Advisors LLC ProFund Advisors LLC ProFund Advisors LLC ProFund Advisors LLC The The The Dow The Dow The Dow diagnostic development these companies derive seeks daily investment results, before fees and seeks daily investment results, before fees and expenses, continued seeks daily investment results, before fees and expenses, that seeks daily investment results, before fees and expenses, that seeks daily investment results, before fees and expenses, that seeks daily investment results, before fees and expenses, that The Dow Jones U.S. Consumer Services Index measures the performance of expenses, that correspond to the dailyServices performance Index. of the Dow Jonesconsumer U.S. spending Consumer in the services industryinclude of airlines, the broadcasting U.S. and equity entertainment, market. appareldrug Component and retailers, companies broadline media retailers, agencies, food publishing, and gambling,and hotels, tourism. restaurants and bars, and travel ProFund VP Biotechnology: correspond to the daily performance ofJones the U.S. Dow Biotechnology Jones Index U.S. measures Biotechnology the Index. the performance U.S. of equity the market. biotechnology Component subsector companies of biological engage substances in for research drug and discovery development and of ProFund VP Consumer Goods: that correspond to the daily performanceDow of Jones the U.S. Dow Consumer Jones Goods U.S. Indexthe Consumer measures goods Goods the industry Index. performance of of the consumer U.S.and spending equity auto in market. parts Component and companies tires, include brewersnon-durable automobiles and household distillers, product farming manufacturers, and cosmetic fishing, companies,products, durable food clothing, and and accessories tobacco and footwear. ProFund VP Consumer Services: ProFund VP Financials: correspond to the daily performance ofDow the Jones Dow U.S. Jones Financials U.S. Sector Financials Indexindustry Sector measures of Index. the the performance U.S. of equity the market.domiciled financial Component international services companies banks; include full regional line, banks; life,companies major and that U.S. property invest, and directly casualty or insurance indirectlysuch companies; in as real Fannie estate; Mae, diversified credit financial cardinvestment companies insurers, advisers; check securities cashing brokers companies, and mortgage dealers,banks lenders including and and investment online banks, brokers; merchant and publicly traded stock exchanges. ProFund VP Health Care: correspond to the daily performance ofJones the U.S. Dow Health Jones Care U.S. Index Health measuresU.S. Care the equity Index. performance market. of Component the companies healthcare includecompanies, industry health medical of care supplies, the providers, advanced biotechnology medical devices and pharmaceuticals. ProFund VP Industrials: correspond to the daily performance ofJones the U.S. Dow Industrials Jones Index U.S. measures Industrials theequity Index. performance market. of Component the companies industrial include industry buildingequipment, of materials, heavy the heavy machinery, U.S. construction, industrial factory services, pollutionindustrial control, diversified, containers air and freight, packaging, marine transportation,transportation railroads, equipment, trucking, shipbuilding, land- transportation services, advancedequipment, industrial electric components and equipment, and aerospace. most of their revenue from the sale of licensing of drugs and diagnostic tools. STYLE/ TYPE INVESTMENT OBJECTIVES/POLICIES Specialty Specialty Specialty Specialty Specialty Specialty Investment Options

AMERICAN SKANDIA ANNUITIES PROSPECTUS 32 AMERICAN SKANDIA ANNUITIES PROSPECTUS 33 ADVISOR/ PORTFOLIO SUB-ADVISOR ProFund Advisors LLC ProFund Advisors LLC ProFund Advisors LLC ProFund Advisors LLC ProFund Advisors LLC ProFund Advisors LLC The The The Dow The Dow The Dow The Dow Jones seeks daily investment results, before fees and expenses, seeks daily investment results, before fees and expenses, seeks daily investment results, before fees and expenses, seeks daily investment results, before fees and expenses, that seeks daily investment results, before fees and expenses, that seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones U.S. Oil & Gas Index. ProFund VP Internet: correspond to the daily performance ofJones the Composite Dow Internet Jones Index Composite measures Internet themarkets Index. performance that of generate stocks the in majority the ofcomposed U.S. their of equity revenues two from sub-groups: the Internet Internet. Commercetheir The — revenues Index companies from is that providing derive goods the and/orweb majority services site. of through Internet an Services open — network, companiesproviding such that access as derive to a the the majority Internet of or their providing revenues services from toProFund people VP Oil using & the Gas: Internet. U.S. Oil & Gas Index measuresmarket. the Component performance companies of include the oil oil drillingmajor, and equipment oil gas and companies-secondary, industry services, pipelines, of oil liquid, the companies- solid U.S.service or equity companies. gaseous fossil fuel producers and ProFund VP Pharmaceuticals: Dow Jones U.S. Pharmaceuticals Index measuressubsector the of performance the of U.S. the equity pharmaceuticals market.prescription Component and companies over-the-counter include drugs the such makers asremedies. of birth control pills, vaccines, aspirin and cold ProFund VP Precious Metals: that correspond to the daily performanceJones of Precious the Metals Dow Index Jones measures Precious theindustry. Metals performance Component Index. of companies the include precious leading metals minersplatinum-group mining and metals producers whose of securities gold, are silver availablehours. and to It U.S. is investors a during float-adjusted U.S. market-capitalization trading weighted index. ProFund VP Real Estate: correspond to the daily performance ofJones the U.S. Dow Real Jones Estate U.S. Index Real measuresequity Estate the market. Index. performance Component of companies the include real thosedevelopment, estate that management sector invest or of directly ownership the or of U.S. indirectly shoppinghousing through malls, developments; apartment and buildings real and estate investmentoffice trusts and ("REITs") retail that properties. invest REITs in areincome-producing apartments, passive real investment estate vehicles or that real invest estate primarily related in loansProFund or VP interests. Semiconductor: that correspond to the daily performanceDow of Jones the U.S. Dow Semiconductor Jones Index U.S. measuressubsector Semiconductor the of Index. performance the of U.S. the equity semiconductor market.semiconductors Component and companies other are integrated engaged chips, in assemiconductor the well capital production as equipment of other and related mother-boards. products such as that correspond to the daily performance of the Dow Jones U.S. Pharmaceuticals Index. STYLE/ TYPE INVESTMENT OBJECTIVES/POLICIES Specialty Specialty Specialty Specialty Specialty Specialty ADVISOR/ PORTFOLIO SUB-ADVISOR ProFund Advisors LLC ProFund Advisors LLC ProFund Advisors LLC ProFund Advisors LLC ProFund Advisors LLC The The Dow In accordance with its seeks daily investment results, before fees and seeks daily investment results, before fees and seeks daily investment results, before fees and The Dow Jones U.S. Telecommunications Sector Index continued seeks daily investment results, before fees and expenses, that seeks daily investment results, before fees and expenses, that ProFund VP U.S. Government Plus: expenses, that correspond to one andthe one-quarter most times recently (125%) issued the 30-year daily U.S.stated price Treasury objective, movement bond the of ("Long net Bond"). asset valuedecrease of as ProFund interest VP rates U.S. rise. Government Ifobjective, Plus ProFund its generally VP net should U.S. asset Government value Plus shouldmuch, is gain on successful approximately a in one percentage meeting and basis, its one-quarter asday. times any Conversely, (125%) daily its as increase net in asset the valueon price should a of lose percentage the approximately basis, Long one as Bond and any on one-quarter daily a as decrease given much, inProFund the VP price Rising of Rates the Opportunity: Long Bondexpenses, on that a correspond given to day. one anddaily one-quarter price times movement (125%) of the the inverse mostIn (opposite) recently accordance of issued with the 30-year its U.S. stated Treasury objective,Opportunity bond the generally ("Long net should Bond"). asset decrease value as of interestOpportunity ProFund rates is VP fall. successful rising If in Rates ProFund meeting VP itsapproximately Rising objective, one Rates its and net one-quarter asset times value asdecrease should much, in gain on the a Long percentage Bond basis, onapproximately as a one any given and daily day. one-quarter Conversely, times its asincrease net much, in asset on the value a Long should percentage Bond lose basis, on as a any given daily day. measures the performance of the telecommunicationsComponent industry companies of include the fixed-line U.S. communications equity andcompanies. market. wireless communications ProFund VP Technology: correspond to the daily performance ofDow the Jones Dow U.S. Jones Technology U.S. Sector Technology Indexindustry Sector measures of Index. the the performance U.S. of equity the market.computers technology Component and companies office include equipment, those software, involved communicationsdiversified in technology, technology semiconductors, services and Internet services. ProFund VP Telecommunications: expenses, that correspond to the dailyTelecommunications performance Sector of Index. the Dow Jones U.S. ProFund VP Utilities: correspond to the daily performance ofJones the U.S. Dow Utilities Jones Sector U.S. Index Utilities measuresU.S. Sector the equity Index. performance market. of Component the companies utilities includeutilities. industry electric of utilities, the gas utilities and water STYLE/ TYPE INVESTMENT OBJECTIVES/POLICIES Specialty Specialty Specialty Specialty Specialty Investment Options

AMERICAN SKANDIA ANNUITIES PROSPECTUS 34 AMERICAN SKANDIA ANNUITIES PROSPECTUS 35 e”). The rust is the ations regarding the use by First Trust on andard & Poor’s and es no representation man Brothers without ADVISOR/ h the ProFunds VP. The y the Corporations as to PORTFOLIO SUB-ADVISOR ProFund Advisors LLC Prudential Investments LLC/ William Blair & Company, LLC Wells Fargo Funds Management, LLC icular the Target Managed VIP omoted by the Corporations. The hers’ only relationship to First T e Line Securities, Inc. or Value Line Publishing, ”, are service marks of Dow Jones & Company, Inc. SM ed by Dow Jones, and Dow Jones makes no representation ill Companies, Inc. and have been licensed for use by American ng, Inc., Value Line, Inc. or Value Line Securities, Inc. (“Value Lin The portfolios, including, and in part ”, and “The Dow 10 SM Inc. (“Lehman Brothers”). Lehman Brot omoted by Standard & Poor’s and Standard & Poor’s mak (formerly Wells Fargo Advantage Equity ” are trade or service marks of The Nasdaq Stock Market, Inc. (which with its affiliates are the ® Ranking System” are registered trademarks of Valu st Advisors L.P. (“First Trust”). ™ he Dow Jones sector indices and its service marks for use in connection wit ’s or NASDAQ, and neither Standard & Poor’s nor NASDAQ makes any represent . The Portfolios are not sponsored, endorsed, managed, sold or promoted by St e “10 Uncommon Values” which is determined, composed and calculated by Leh The Portfolio invests primarily in stocks of large and sdaq Target 15 Portfolio and Target Managed VIP Portfolio have not been passed on b ”, and “Nasdaq ® Managed VIP Portfolio are not issued, endorsed, sponsored, managed, sold or pr ”, “Dow Jones Select Dividend Index SM seeks to provide investment results that correspond generally to ’s 500,” and “500” are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for Target Dividend Portfolio are not endorsed, sold or promot e advisability of investing in the Portfolio. SM Portfolio is not sponsored, endorsed, sold or pr e advisability of investing in the Portfolio. seeks long-term capital appreciation and above-average dividend income. ”, “Dow Industrials ,” “Standard & Poor’s 500,” and “500” are trademarks of the McGraw-H ”, “Nasdaq Stock Market SM ® ® 10 Uncommon Values portfolio. ® ”, “DJIA SM Portfolio is not sponsored, recommended, sold or promoted by Value Line Publishi ,” “S&P 500 ® ® Access VP High Yield: the total return of the highThe yield Fund market will consistent achieve with its maintaining highbut reasonable yield may liquidity. exposure invest primarily in through high credit yieldand default debt futures swaps instruments contracts, (CDSs) (“junk and bonds”), other interest debtconsistent rate and with swap money applicable agreements market regulations. instruments Under without normalat limitation, market least conditions, 80% the of Fund its will nethave invest assets economic in characteristics CDSs similar and to other thesecurities. financial high The instruments yield Fund that debt seeks in market to combination and/or maintainmarket in exposure conditions high to and yield the without debt high taking yield defensiveconduct bond positions. fundamental markets ProFund analysis regardless Advisors in of does managing not the Fund. The Prudential Series Fund — SPseeks William long-term Blair capital International appreciation. Growth Portfolio: medium-sized companies located in countries includedInternational in All the Country Morgan World Stanley Ex-U.S. Capital Index.invests Under at normal least market 80% conditions, of the itsbe portfolio net allocated assets among in not equity fewer securities. thaninvestments The six in Portfolio's different any assets countries particular normally and industry. will will Thehad not Portfolio superior concentrate seeks growth, companies profitability that and historically qualitycompanies have relative within to the local same markets industry and worldwide,performance. relative and (see to that information are above expected regarding to limited continue availability such of thisWells option.) Fargo Advantage VT Equity Income Income Fund): Portfolio invests in the common stocksand of above-average large dividend U.S. income. companies The with Portfoliocompanies strong invests with return principally market potential in capitalizations securities of of $3 billion or more. DART 10 portfolio, and The Dow ,“S&P ® ”, “Nasdaq-100 Index SM ® 10 Uncommon Values portfolio is not sponsored or created by Lehman Brothers, ® ,” “The Value Line Investment Survey,” and “Value Line Timeliness ® STYLE/ TYPE INVESTMENT OBJECTIVES/POLICIES Specialty International Equity Large Cap Value its legality or suitability. The Nasdaq Target 15 Portfolio and Target “Standard & Poor’s “Standard & Poor’s,” “S&P,” “S&P 500,” “Standard & Poor “Value Line regarding the advisability of investing in such products. behalf of the S&PStandard Target & 24 Poor’s makes Portfolio no and representation regarding“The the th Nasdaq Target 100 Managed VIP“Corporations”) Portfolio and have been licensed for use by First Trust.Corporations The make no Na warranties and bear no liability with respect to theInc. Nasdaq The Target Target 15 Managed Portfolio VIP or theValue Target Line Managed makes VIP no Portfolio. representation regarding th The First Trust ProFunds VP are not sponsored, endorsed,advisability sold, of or investing promoted in by the Standard ProFunds & VP. Poor Dow Jones has no relationship to the ProFunds VP, other than the licensing of t Skandia Investment Services, Incorporated. The (“Dow Jones”) and have been licensed for use for certain purposes by First Tru “Dow Jones Industrial Average regarding the advisability of investing in the Portfolio. licensing of certain trademarks and trade names of Lehman Brothers and of th regard to First Trust or the First Trust portfolio The Dow Fixed Allocations may not be available in all states. Avail- either be positive or negative, dependingapplicable on interest the rates movement payable of on Stripsduration. of Please the refer appropriate to the sectionMarket entitled Value “How Adjustment does Work?” the for aalong description with of examples the of formula how itAccount is Value calculated. to You more may than allocate one Fixed Allocation at a time. ability of Fixed Allocations is subjectstate to and change by and the may annuity differ product by American you Skandia purchase. at Please 1-800-752-6342 call to determineFixed availability Allocations of in your state and for your annuity product. continued WHAT ARE THE FIXED ALLOCATIONS? We offer Fixed Allocations of differentaccumulation durations period. during These the “Fixed Allocations” earnfixed a rate guaranteed of interest for a“Guarantee specified Period.” period In of most time, states, called we the with offer Guarantee Fixed Periods Allocations from 1 tospecial 10 purpose years. Fixed We Allocations may for also use offer investment with programs. certain We optional guarantee the fixedGuarantee rate Period. for However, the if entire you withdrawValue or before transfer the Account end of thevalue Guarantee of Period, your we withdrawal will or adjust transfer the “Market based Value on Adjustment.” a The formula, Market called Value a Adjustment can Investment Options

AMERICAN SKANDIA ANNUITIES PROSPECTUS 36 AMERICAN SKANDIA ANNUITIES PROSPECTUS 37 Currently, you may make twenty (20) free With respect to a partial withdrawal, we calculate the CDSC For purposes of calculating any applicable CDSC on a We may waive any applicable CDSC under certain medically- Transfer Fee: 1. The amount of the CDSCthe decreases Issue over Date time, of measured the from Annuity.APEX The II CDSC and percentages XT6 for are ASAP shown III, Charges”. under No “Summary CDSC of is Contract deducted Fees from and ASL II Annuities. by assuming that any available freeout withdrawal first amount (see is How taken Much CanIf I the Withdraw free as withdrawal a amount Free is Withdrawal?). that not withdrawals sufficient, are we taken then from assume Purchasebeen Payments previously that withdrawn, have on not a first-in,subsequently first-out from basis, any and other Account Value in the Annuity. surrender, the Purchase Payments being withdrawngreater may than be your remaining Account Valuewithdrawal or request. the This amount is of most your likelyprior to partial occur withdrawals if or you if have your made value Account due Value to has negative declined market in performance.would In determine that the scenario, CDSC we amount asof the the applicable Purchase percentage Payments being withdrawn,percentage rather of than the as remaining a Account Valuerequest. or Thus, withdrawal the CDSC would belated greater as than a if percentage it of were remaining calcu- amount. Account Value or withdrawal related circumstances or when taking afrom Minimum an Distribution Annuity purchased as aWithdrawals, “qualified” Medically-Related investment. Surrenders Free and Minimum Distributions are each explained more fully“Access in to the Your section Account entitled Value”. transfers between investment options each Annuitycharge Year. $10.00 We for will each transfer afterAnnuity the Year. twentieth We in do each not considerDollar transfers Cost made Averaging, as Automatic part Rebalancing of or a program asset when allocation we count the twentymade free on transfers. the All same transfers day willRenewals be or treated transfers as of one Account (1) Value transfer. the from end a of Fixed its Allocation Guarantee at Periodand are are not not subject counted to toward the the Transferreduce twenty Fee the free number transfers. of We free may transfers(subject allowable to each a Annuity minimum Year of eight)unless without you charging make a use Transfer of Fee electronicrequests. means We to may transmit eliminate your the transfer Transfertransmitted Fee electronically for or transfer through requests other meansprocessing that costs. reduce If our enrolled in any program that does not permit We do not deduct a sales

The rates of certain of our charges have been set with

consider the year following the Issue Date of your Annuity as Year applicable Annuity Year. For purposes of calculating the CDSC, we Purchase Payment being surrendered or withdrawn during the tional expenses. The CDSC is calculated as a percentage of your including commissions, marketing materials and other promo- expenses related to sales and distribution of the Annuity, when you make a partial withdrawal. The CDSC reimburses us for However, we may deduct a CDSC if you surrender your Annuity or charge from Purchase Payments you make to your Annuity. Contingent Deferred Sales Charge: WHAT ARE THE CONTRACT FEES AND CHARGES? that represent any Credits. including, for ASAP III, XT6 and APEX II, appreciation on amounts amounts based on market appreciation of the Sub-account values receives from charges that apply to the Sub-accounts may include the contract. A portion of the proceeds that American Skandia of any other charges we are permitted to deduct by the terms of that we may not also be compensated for such expense or risk out more than the amount of such expense or risk, nor does it mean mean that the amount we collect from that charge will never be designed primarily to defray a particular expense or risk does not charge; however, the fact that any charge bears the name of, or is prospectus identifies such expenses or risks in the name of the expenses or risks that we will incur. In most cases, this American Skandia’s general account. reference to estimates of the amount of specific types of associated with offering Credits which are funded through of XT6, ASAP III and APEX II to offset a portion of the costs distributing, issuing and administering an Annuity and, in the case of other expenses that American Skandia incurs in promoting, may be used for any other corporate purpose, including payment the extent we make a profit on the Insurance Charge, such profit are less than the amount we deduct for the Insurance Charge. To providing the guaranteed insurance obligations under an Annuity profit on the Insurance Charge if, over time, the actual costs of we will incur a loss. For example, American Skandia may make a in connection with the contracts, we will earn a profit. Otherwise charges that we collect from the contracts exceed our total costs we assume pursuant to the contracts. If, as we expect, the designed, in the aggregate, to compensate us for the risks of loss and providing benefits under the contracts. They are also aggregate, our direct and indirect costs of selling, administering The charges under the contracts are designed to cover, in the Fees and Charges If you For ASAP III and XT6, we deduct a We deduct an Insurance Charge daily. Optional Benefits for which we assess a charge: Insurance Charge: The Insurance Charge is not deducted against assets allo- Distribution Charge: Distribution Charge daily. The charge isaverage assessed assets against allocated the to the Sub-accountsamount and indicated is under equal “Summary to of the Contracton Fees an and annual Charges” basis. The Distributioncompensate Charge us is for intended a to portion ofAnnuity, our including acquisition promotion expenses and under distribution the ofwith the respect Annuity to and, XT6, the costswhich associated are with funded offering through Credits American Skandia’sThe general Distribution account. Charge is deducted againstAccount your Value Annuity’s and any increases orValue decreases based in on your market Account fluctuations ofaffect the the Sub-accounts charge. will cable income tax law and (ii)income we taxes do in not the currently tax include charges company you pay under the contract. The charge is assessed against theSub-accounts daily and assets is allocated equal to to the the“Summary amount of indicated Contract under Fees and Charges”.is The the Insurance combination Charge of the Mortalitythe & Administration Expense Charge. Risk The Charge Insurance and Chargecompensate is American intended Skandia to for providing thefits insurance under bene- each Annuity, including eachBenefit Annuity’s that basic provides Death guaranteed benefits toeven your if beneficiaries the market declines andguarantee the annuity risk payments that to persons will we livetions. longer The than charge our also assump- covers administrativeproviding costs the associated Annuity with benefits, including preparationcontract, of confirmation the statements, annual account statements and annual reports, legal and accountingrelated fees expenses. as Finally, well the as charge various coversassumptions the about risk the that mortality our risks andAnnuity expenses are under incorrect each and that wethese have charges agreed over not time to despite increase ourincrease actual the costs. portion We of may the totaldeducted Insurance for Charge administrative that costs; is however, anyapply increase to will Annuities only issued after the date of the increase. cated to a Fixed Allocation. However,Fixed the Allocations amount may we also credit reflect to similarinsurance assumptions guarantees about provided the under each Annuity. elect to purchase certain optional benefits,additional we charge will on deduct a an daily basis solely from your Account Value continued During the accumulation period Several states and some municipalities charge We will pay company income taxes on the taxable corporate In calculating our corporate income tax liability, we derive Annual Maintenance Fee: Tax Charge: % of your premium and is designed to approximate the taxes 2 ⁄ 1 that we are required to pay.at We the generally time will the deduct tax the is charge charge imposed, from but each may Purchase also Payment decide at toor the deduct surrender time the of of your a Annuity withdrawal orreceiving at annuity the payments. time We you may elect assess toSub-accounts a begin and charge the against Fixed the Allocations equalmay to be any imposed taxes upon which the separate accounts. earnings created by this separate accountconsider product. company While income we taxes may when pricingnot our currently products, include we such do income taxesunder in the the contract. tax We charges will you periodically pay charging review for the these issue taxes of and may impose a charge in the future. certain corporate income tax benefits associatedment with of the company invest- assets, including separatewhich account are assets, treated as company assetslaw. under These applicable benefits income reduce tax our overallliability. corporate Under income current tax law, such benefitscredits may and include corporate foreign dividends tax received deductions.pass We these do tax not benefits through toaccount holders annuity of contracts the because separate (i) thethe contract owners owners of are the not assets generating these benefits under appli- transfer requests to be transmitted electronically,Fee the will Transfer not be waived. premium taxes or similar taxes onto annuities pay. that The we amount are of required taxand will is vary subject from to jurisdiction change. to The jurisdiction 3 tax charge currently ranges up to Fees and Charges we deduct an Annual Maintenance Fee.Fee The is Annual $35.00 Maintenance or 2% ofSub-accounts, your whichever Account is Value less. invested This in fee the ally will on be the deducted anniversary annu- of thesurrender Issue your Date Annuity of during your the Annuity Annuity or,deducted Year, if at the you the fee time is of surrender.II With and respect ASL to II, ASAP currently, III, the APEX deducted Annual if Maintenance your Fee Account is Value only isanniversary less of than the $100,000 Issue on Date the orrespect at to the XT6, time we of deduct surrender. the With less Annual of Maintenance Account Fee Value. regard- We mayFee. increase However, the any Annual increase Maintenance will onlyafter apply the to date Annuities of issued the increase.

AMERICAN SKANDIA ANNUITIES PROSPECTUS 38 AMERICAN SKANDIA ANNUITIES PROSPECTUS 39 from these payments; however, the amountpayment of reflects each assumptions annuity about our insuranceyou expenses. select If a variable payment optionamount that of we your may benefits offer, will then reflect the Annuity changes and in will the be value subject of to your variable charges immediate that annuity apply option. under Also, the a(see tax “Tax charge Charge” may above). apply The variableare annuity described payment in options detail in aable separate upon prospectus, request which and is which avail- willyou be elect provided one to of you the if variable andseparate annuity when prospectus payment sets options. forth The the feesvariable and payment charges option, under which the may bein higher this than prospectus. those set forth EXCEPTIONS/REDUCTIONS TO FEES AND CHARGES We may reduce or eliminate certainmanner fees in and which charges the or particular alter fee the example, or we charge may is reduce deducted. the For amounttime of it any applies, CDSC reduce or or the eliminate lengthMaintenance the of Fee amount or of reduce the the Annual portionCharge of that the is total deducted Insurance as anthese Administration types Charge. of Generally, changes will bemaintenance based or on administrative a expenses reduction due to to ourindividual the sales, or nature group of purchasing the the Annuity.we Some might of consider the in factors making suchtype a of decision group; are: (b) (a) the the number size(c) of and the Annuities amount purchased of by Purchase an Payments Owner; Purchase or Payments; likelihood (d) of whether additional an annuityto is our reinstated rules; pursuant and/or (e) othertenance transactions or where administrative sales, expenses main- are likelywill to not be discriminate reduced. unfairly We between Annuitywhen purchasers we if reduce and any fees and charges. Each

Fees and expenses incurred by the Portfolios:

you elected to annuitize. There is no specific charge deducted payment will depend on the Account Value of your Annuity when If you select a fixed payment option, the amount of each fixed PAYMENT OPTION? WHAT CHARGES APPLY IF I CHOOSE AN ANNUITY surrender or annuitization from a Fixed Allocation. Adjustment may also apply to transfers, certain withdrawals, from the Sub-accounts or the Fixed Allocations. A Market Value tions. Any CDSC or Tax Charge applies to amounts that are taken factors in determining the interest rates we credit to Fixed Alloca- consideration mortality, expense, administration, profit and other Account Value allocated to the Sub-accounts, we also take into same reasons that we deduct the Insurance Charge against rate we credit to a Fixed Allocation. However, for some of the No specific fees or expenses are deducted when determining the ALLOCATIONS? WHAT CHARGES APPLY TO THE FIXED found in the prospectuses for the Portfolios. day. More detailed information about fees and expenses can be Skandia with the net asset value as of the close of business each are reflected daily by each Portfolio before it provides American and service (12b-1) fees that may apply. These fees and expenses investment management fee, other expenses and any distribution Portfolio incurs total annual operating expenses comprised of an each Optional Benefit. Programs” and “Death Benefit” for a description of the charge for basis. Please refer to the sections entitled “Living Benefit may assess charges for other optional benefits on a different in the daily calculation of the Unit Price for each Sub-account. We allocated to the Sub-accounts. The additional charge is included We , you may be 2 ⁄ 1 The Beneficiary is the person(s) or entity you The Annuitant is the person we agree to make The Owner(s) holds all rights under the Annuity. You Owner, Annuitant and Beneficiary Designations: Owner: may name up to two Ownersrights in are which held case jointly. all Generally, ownership jointact owners jointly; are however, required if to each ownerinstruction provides that us we with find an acceptable, weowner will to permit act each separately. All informationwe and are documents required that to send youowner. will This be Annuity sent does to not the provide firstRefer a named to right the of Glossary survivorship. of Termsthe for term a “Owner.” complete description of Annuitant: annuity payments to and upon whosemake life such we payments. continue You to must namenatural an person. Annuitant We who do is not a acceptAnnuitants a during designation the of accumulation joint period. Whereby allowed law, you may name oneContingent or Annuitant more will Contingent become Annuitants. the A AnnuitantAnnuitant if dies the before the Annuity Date.discussion Please of refer “Considerations to for the Contingent Annuitants”the in Tax Considerations section of theBeneficiary: Prospectus. name to receive the Death Benefit.nation Your should beneficiary be desig- the exact namea of reference your to beneficiary, the not beneficiary’s only relationshipa to designation you. of If “surviving you spouse,” use weBenefit will to pay the the individual Death that isyour your death spouse (as at defined the under time the of regulations). federal If tax no laws beneficiary and is namedbe the paid Death to Benefit you will or your estate. Your right to make certain designations may be limited if your subject to a 10% penalty inany addition gain. to The ordinary availability income and taxes level on optional of benefits protection may of vary certain based onIssue the Date age of of the the Annuity Owner or on the the date of the Owner’s death. will ask you to name theBeneficiaries Owner(s), for Annuitant your and Annuity. one or more • • • Annuity is to be used asthat an is IRA given or beneficial other tax “qualified” treatment investment seek under competent the tax Code. advice You on should theimplications income, of estate your and designations. gift tax need. If you take a distribution prior to age 59 Purchase Payments Additional Unless we agree otherwise and Unless we agree otherwise and subject to Where allowed by law, we must approve any initial and Except as noted below, Purchase Payments must be Age Restrictions: WHAT ARE OUR REQUIREMENTS FOR PURCHASING ONE OF THE ANNUITIES? Initial Purchase Payment: subject to our rules, you mustPayment make as a follows: minimum $1,000 initial for Purchase ASAPAPEX III, II $10,000 and for $15,000 XT6 for and ASLpayments II. under However, a if systematic you investment decide or totransfer an make program, electronic we funds will accept aprovided lower that, initial within Purchase the Payment first AnnuityPurchase Year, Payments your plus subsequent your initial Purchaseminimum Payment initial total Purchase the Payment amount requiredAnnuity for purchased. the additional Purchase Payments of $1,000,000 orapply more. certain We limitations may and/or restrictions oncondition an of Annuity our as acceptance, a including limitingfeatures the or liquidity the Death Benefit protectionAnnuity, provided limiting under the an right to makechanging additional the Purchase number Payments, of transfers allowablerestricting under the an Sub-accounts Annuity or or Fixed Allocationsable. that Other are limitations avail- and/or restrictions may apply. submitted by check drawn on amade U.S. payable bank, to in American U.S. Skandia. dollars, Purchase and be Payments submitted may via also 1035 exchange orcertain direct circumstances, transfer Purchase of Payments funds. may Under beAmerican transmitted Skandia to via wiring funds throughProfessional’s your broker-dealer Financial firm. may also be applied to yourtransfer Annuity arrangement under where an you electronic authorize funds usdirectly to from deduct your money bank account. Weis may received reject in any an payment unacceptable if form. it subject Our to acceptance our of ability a to check collect is funds. our rules, the Owner (or Annuitantolder if than entity a owned) maximum must issue not age be Annuity as as of follows: the age Issue 80 Date for offor ASAP the APEX III, II. age For 75 ASL for II, XT6the there and basic is age death no 85 benefit maximum provides issue age, greaterunder however protection age for 85. Owners If an AnnuityOwners is must owned not jointly, be the older oldest than ofIssue the the Date. maximum You issue should age consider on your the Value need and to whether access the your Annuity’s Account liquidity features will satisfy that Purchasing Your Annuity

AMERICAN SKANDIA ANNUITIES PROSPECTUS 40 AMERICAN SKANDIA ANNUITIES PROSPECTUS 41 Contingent Annuitant If an Annuity is owned byContingent an Annuitant, entity no and Death the Benefit entity is hasof payable named the upon a Annuitant. the However, death the Accountthe Value date of of the due Annuity proof as of of amount death that of would the have Annuitant been will payable reflectpaid. had the The a Annuity Death is Benefit eligible been todesignation have if a the Contingent entity Annuitant which ownsdescribed the in annuity Internal is Revenue a Code plan Sectionentity 72(s)(5)(A)(i) described or in an Code section 72(u)(1),sections. or any successor Code MAY I RETURN MY ANNUITYMY IF MIND? I CHANGE If after purchasing your Annuity youthat change you your do mind not and want decide it,period you of may time return known it as to a usreferred right within to to a as cancel certain a period. “free-look.” This Depending ispurchased on often your the Annuity state and, in in which some you Annuity states, as if a you replacement purchased for the aperiod prior may contract, be the ten right (10) to days, cancel that or you longer, received measured your from Annuity. the If time the you applicable return period, your we Annuity will during refundplus your any current tax Account charge Value deducted, lessstate any income applicable tax federal withholding and and dependingrequirements, on any your applicable state’s insurance charges deducted.amount The returned to you may bePayment(s) higher applied or during lower the than right the to Purchase required cancel by period. law, Where we will returngreater your of Purchase your Payment(s), current or Account the ValuePurchase and Payment(s) the applied amount during of the your rightany to applicable cancel federal period and less state incomerespect tax to withholding. XT6, With if you returnXTra your Credits Annuity, we we applied will to not your returnPayments. Annuity any based on your Purchase MAY I MAKE ADDITIONAL PURCHASE PAYMENTS? Unless we agree otherwise and subjectamount to that our we rules, accept the as minimum anunless additional you Purchase participate Payment in is American $100 Skandia’sment Systematic Plan Invest- or a periodic PurchasePayments Payment made program. while Purchase you participate inprogram an will asset be allocation allocated in accordanceAdditional with Purchase such Payments program. may be paidAnnuity at Date. any time before the

Annuity Date if the Annuity is owned by an entity; and designation irrevocable. first of any joint Owners toBeneficiary die, has except become where the a Owner spouse- asdeath; a result of an Owner’s

sions of the Annuity, including the CDSC when applicable. the date the assumption is effective will be subject to all provi- Value. However, any additional Purchase Payments applied after initial Purchase Payment. No CDSC will apply to the new Account surviving spouse, the new Account Value will be considered as the of determining any future Death Benefit for the beneficiary of the “Living Benefit Programs” section of this Prospectus. For purposes benefit with the Annuity. See the description of this benefit in the the eligible surviving spouse will also be able to assume the same attained age. For the Spousal Lifetime Five Income Benefit, would be available under the Annuity to a new purchaser of the the surviving spouse will have all the rights and benefits that spousal relationship. As of the date the assumption is effective, as of the date of due proof of death and any required proof of a have been payable will be the new Account Value of the Annuity taking the Death Benefit payment. The Death Benefit that would spouse may elect to assume ownership of the Annuity instead of nation, upon the death of either spousal Owner, the surviving designation. Unless you elect an alternative Beneficiary desig- as the co-owner unless you elect an alternative Beneficiary sole primary Beneficiary is the surviving spouse that was named Spousal Owners/Spousal Beneficiaries If an Annuity is co-owned by spouses, we will assume that the elected certain optional benefits. There may be restrictions on designation changes when you have • a change in Beneficiary if the Owner had previously made the • for “non-qualified” investments, a new Annuitant prior to the • a new Annuitant subsequent to the Annuity Date; • a new Owner subsequent to the death of the Owner or the limited to: Some of the changes we will not accept include, but are not allowed by law, such changes will be subject to our acceptance. enrollment if they wish to participate in such a program. Where be canceled. The new owner must submit the applicable program change, any automated investment or withdrawal programs will nations by sending us a request in writing. Upon an ownership You may change the Owner, Annuitant and Beneficiary desig- BENEFICIARY DESIGNATIONS? MAY I CHANGE THE OWNER, ANNUITANT AND Managing Your Annuity MAY I MAKE PURCHASE PAYMENTSSALARY THROUGH REDUCTION A PROGRAM? These types of programs are onlyqualified available investments. with If certain your types employer of sponsorswe such may a agree program, to accept periodicsalary Purchase reduction Payments program through as a long asto the Sub-accounts allocations and are the made periodic only Purchasethe Payments first received year in total at leastforth the above. minimum Purchase Payment set continued Purchase Payments to your Annuity by additional MAY I MAKE SCHEDULED PAYMENTSFROM DIRECTLY MY BANK ACCOUNT? You can make authorizing us to deduct money directlyand from applying your it bank to account your Annuity.transfer We program call “American our Skandia’s electronic Systematic funds Investment Plan.” Purchase Payments made through electronicmay funds only transfer be allocated to theallow Sub-accounts you when to applied. invest We in may yourPayment, Annuity as with long a as lower you initial authorize Purchase funds payments transfer through that an will electronic equal atPayment least set the forth minimum above Purchase during theAnnuity. first We 12 may months suspend of or your cancelprivileges electronic if funds sufficient transfer funds are notfinancial available institution from on the any applicable date thatoccur. a transaction is scheduled to Managing Your Annuity

AMERICAN SKANDIA ANNUITIES PROSPECTUS 42 AMERICAN SKANDIA ANNUITIES PROSPECTUS 43 made on or before the fifthwill Annuity be Anniversary, applied no to Loyalty your Credit Annuity.applied Also, to no your Loyalty Annuity Credit if will your be Annuity Account Anniversary. Value This is would zero include on any theAnnuity situation fifth is where still the in force duemade to under the an fact optional that benefit payments such areLifetime as being Five Lifetime or Five, the Spousal Guaranteed Minimumaddition, Withdrawal no Benefit. Loyalty In Credit will bethe applied fifth to Annuity your Anniversary: Annuity (i) if you before Annuity; have (ii) surrendered you your have annuitized yourhas Annuity; elected (iii) our your Beneficiary Beneficiary Continuation Option;received or due (iv) proof we of have your deathcontinuation (and election there made). has If been your no spouse spousal under continues our the spousal contract continuation option, weCredit will to apply your the Annuity Loyalty only onmeasured the from fifth the Annuity date Anniversary that weSince originally the issued Loyalty you Credit the is Annuity. appliedguarantees to that the are Account not Value based only, on any the Account Loyalty Value Credit. will Similarly, not guarantees reflect thatloss are in made Account against Value a will notcircumstances be where triggered they in otherwise certain would very have limited Loyalty been, Credit had been no applied to the Account Value. HOW ARE LOYALTY CREDITS APPLIEDACCOUNT TO VALUE MY UNDER THE ASAPII III ANNUITIES? AND APEX Any Loyalty Credit that is allocatedfifth to Annuity your Anniversary Account will Value be on allocated the and to Sub-accounts the in Fixed the Allocations same percentagesare as then Purchase being Payments allocated to your Annuity. Example of Applying the Loyaltyto Credit ASAP with III respect Assume you make an initial Purchaseyour Payment Annuity of is $10,000 issued and on orAnnuity after Year February four 13, (i.e., 2006. prior During tomake the an fourth additional Annuity $10,000 Anniversary) Purchase you Payment.part During of the Annuity early Year five (i.e.,sary) prior you to make the a fifth $10,000 Annuity Purchase Anniver- make Payment a and withdrawal later of in $5,000. the The year apply Loyalty to Credit your that Annuity we on will theto fifth state Annuity availability, Anniversary equal is, to subject 0.50%the of $20,000 $15,000 of (this Purchase represents Payments madeAnnuity during Years the minus first the four $5,000 withdrawalAnnuity made Year. in The the computation fifth disregards thePurchase additional Payment $10,000 made in the fifthLoyalty Annuity Credit Year.) amount Therefore, would the be equal to $75.00. Unless you participate in Once we accept your applica-

If the total Purchase Payments made during the first four Subsequent Purchase Payments: Initial Purchase Payment:

Annuity Years is less than the cumulative amount of withdrawals Anniversary. deduction of any CDSC amounts) through the fifth Annuity the cumulative amount of withdrawals made (including the Purchase Payments made during the first four Annuity Years less state availability), the Loyalty Credit is equal to 2.75% of total APEX II Annuities issued on or after February 13, 2006 (subject to of any CDSC amounts) through the fifth Annuity Anniversary. For cumulative amount of withdrawals made (including the deduction Payments made during the first four Annuity Years less the availability), the Loyalty Credit is equal to 2.25% of total Purchase between June 20, 2005 and February 13, 2006 (subject to state Annuity Anniversary. With respect to APEX II, for annuities issued (including the deduction of any CDSC amounts) through the fifth Annuity Years less the cumulative amount of withdrawals made 0.50% of total Purchase Payments made during the first four 2006 (subject to state availability), the Loyalty Credit is equal to respect to ASAP III, for annuities issued on or after February 13, end of your fifth Annuity Year (“fifth Annuity Anniversary”). With We apply a Loyalty Credit to your Annuity’s Account Value at the THE ASAP III AND APEX II ANNUITIES? HOW DO I RECEIVE A LOYALTY CREDIT UNDER program will be allocated in accordance with such program. Payments made while you participate in an asset allocation allocation instructions. Unless you tell us otherwise, Purchase allocate subsequent Purchase Payments according to any new Payment allocation instructions. If you so instruct us, we will Purchase Payments you make according to your initial Purchase subsequent Purchase Payments, we will allocate any additional other specific allocation instructions for one, more than one, or all an asset allocation program, or unless you have provided us with will apply if you elect certain optional benefits. more Sub-accounts or Fixed Allocations. Investment restrictions charges that may apply. You can allocate Account Value to one or Purchase Payment is your initial Purchase Payment minus any tax to your instructions for allocating your Account Value. The tion, we invest your Purchase Payment in your Annuity according for pricing initial and subsequent Purchase Payments.) (See “Valuing Your Investment” for a description of our procedure INVESTED? HOW AND WHEN ARE PURCHASE PAYMENTS Managing Your Account Value .065) to your Account × continued The designated class of Annuity Owners included: (a) any All other terms and conditions of the Annuity apply to Owners Value in the proportion that your Purchase Payment is allocated. different table of Credits. The CreditPayments applied on to such all Annuities Purchase is asYear follows in based which on the the Purchase Annuity PaymentYear was 2 made: — Year 9.0%; 1 Year — 3 9.0%; 7.0%; — Year 8.5%; 6 Year — 4 6.0%; — Year 8.0%;— 7 Year 3.0%; — 5 Year 5.0%; — 10 Year — 8 2%; — Year 4.0%; 11+ Year — 9 0.0%. parent company, affiliate or subsidiary ofdirector, ours; employee, (b) retiree, an sales officer, representative, oran in affiliated the broker-dealer, case registered of representative ofcompany; such (c) a director, officer orfund; trustee (d) of a any director, underlying officer mutual ormanager, employee sub-advisor, of transfer any agent, investment custodian, auditing,administrative legal services or provider that is providingmanagement, investment advisory, transfer agency, custodian-ship, auditing, legal and/or administrative services to anor underlying any mutual affiliate fund of such firm;registered (e) representative a of director, a officer, broker-dealer employee or or that insurance has agency a then current sellingAmerican agreement Skandia with Marketing, us Incorporated, and/or a with PrudentialCompany; Financial (f) a director, officer, employeerepresentative or of authorized any firm providing usregular or legal, our actuarial, affiliates auditing, with underwriting, claims,istrative, admin- computer support, marketing, office or(g) other the services; then current spouse of(f), any above; such (h) person the noted parents in of (b)(g), any through above; such (i) person the noted child(ren) in or (b)of other through 21 legal of dependent any under such the person age siblings noted of in any (b) such through persons (h); noted and in (j) (b) the through (h) above. in the designated class. HOW ARE CREDITS APPLIED TO ACCOUNT VALUE UNDER THE XT6Each ANNUITY? Credit is allocated to yourPurchase Account Payment Value is at applied the to time your the of Account the Value. Credit The is amount allocated toratio the as investment the options applicable in Purchase the Payment same is applied. Examples of Applying Credits Initial Purchase Payment Assume you make an initial Purchaseyour Payment Annuity of is $10,000 issued and on orapply after a February 6.5% 13, Credit 2006. to We your would amount Purchase of Payment the and Credit allocate ($650 the = $10,000 ANNUITY YEAR1234567+ CREDIT 6.50% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% ANNUITY YEAR1234567+ CREDIT 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% For annuities issued on or after February 13, 2006 (subject to For annuities issued prior to February 13, 2006: Credits Applied to Purchase PaymentsClass for of Designated Annuity Owner Prior to May 1, 2004, wherebe allowed purchased by by state a law, member Annuities of could the class defined below, with a state availability): Example of Applying the Loyaltyto Credit APEX with II respect Assume you make an initial Purchaseyour Payment Annuity of is $10,000 issued and on orAnnuity after Year February four 13, (i.e., 2006. prior During tomake the an fourth additional Annuity $10,000 Anniversary) Purchase you Payment.part During of the Annuity early Year five (i.e.,sary) prior you to make the a fifth $10,000 Annuity Purchase Anniver- make Payment a and withdrawal later of in $5,000. the The year apply Loyalty to Credit your that Annuity we on will theto fifth state Annuity availability, Anniversary equal is, to subject 2.75%the of $20,000 $15,000 of (this Purchase represents Payments madeAnnuity during Years the minus first the four $5,000 withdrawalAnnuity made Year. in The the computation fifth disregards thePurchase additional Payment $10,000 made in the fifthLoyalty Annuity Credit Year.) amount Therefore, would the be equal to $412.50. HOW DO I RECEIVE CREDITSANNUITY? UNDER THE XT6 We apply a “Credit” to your Annuity’smake Account a Value Purchase each Payment time during you the firstamount six of (6) the Annuity Credit Years. is The payable fromamount our of general the account. Credit The depends on thePurchase Annuity Payment(s) Year is in made, according which to the the table below: Managing Your Account Value

AMERICAN SKANDIA ANNUITIES PROSPECTUS 44 AMERICAN SKANDIA ANNUITIES PROSPECTUS 45 hour 2 / 1 ) transfer in each Annuity Year. Transfers made as th Currently, we charge $10.00 for each transfer after the for income tax purposes. Free Withdrawal provision. The Free Withdrawalonly provision applies to withdrawals of Purchase Payments. We may impose specific restrictions on financial transactions prior to any announced closing (generally,for 3:30 transactions p.m. submitted Eastern electronically, time) including through American Skandia’s Internet website (www.americanskandia.prudential.com). twentieth (20 part of a Dollar Cost Averaging,allocation Automatic program Rebalancing do or not asset count towardlimit. the Renewals twenty or free transfers transfer of Accounttion Value at from the a end Fixed of Alloca- itstransfer Guarantee charge. Period We are may not reduce subject the toallowable number the each of Annuity free Year transfers (subject towithout a charging minimum a of Transfer eight) Fee. WeTransfer may Fee also that increase we the charge tonumber $20.00 of for free each transfers transfer has after beenTransfer the used Fee up. for We transfer may requests eliminate transmitted the through electronically other or means that reduce ourin processing any costs. program If that enrolled does nottransmitted permit electronically, transfer the requests Transfer to Fee be will not be waived. General Information about Credits • We do not consider Credits to be• “investment in the contract” You may not withdraw the amount of any Credits under the ARE THERE RESTRICTIONS OR CHARGESTRANSFERS ON BETWEEN INVESTMENT OPTIONS? During the accumulation period you maybetween transfer investment Account options Value subject to thebelow. restrictions Transfers outlined are not subject torequire taxation a on minimum any of gain. $500 We in may Account each Value Sub-account to you at allocate the timerequest of a any transfer allocation and, or as transfer. a Ifless result you than of $500 the in transfer, the there Sub-account, wouldAccount we be Value may in transfer the the Sub-account remaining pro-ment rata options to to the which other you invest- transferred. (including transfer requests) for certain PortfoliosPortfolio’s based investment on and/or the transfer restrictions. Weto may conform do to so any present orany future portfolio restriction available that under is an imposed Annuity. by redemption Currently, or any transfer purchase, involving the ProFundsmust VP be Sub-accounts received by us noannounced later closing than of one the hour applicable prior securities to(generally, exchange any 3:00 p.m. Eastern time) toValuation be Day. processed The on “cut-off” the time current forinvolving such a financial ProFunds transactions VP Sub-account will be extended to .01) to × .05) to your ×

The Account Value may be substantially reduced if American portion of the Annuity will notXTra include Credits the payable amount on of Purchase any Payments12 made months within prior to the datemedically-related of surrender a provision; request and under the returned to you will not includeCredits. the amount of any XTra If you qualify for the 6.5% Xtra Credit in the first year (for Purchase Payments made within the 12Owner’s months (or before Annuitant’s the if entity owned)be date taken of back; death will

• the amount available under the medically-related surrender • if you elect to “free-look” your Annuity, the amount annuities issued on or after Februaryavailability), 13, only 2006, 6% subject of to that state amountconnection will with be the taken first back two in bulletsHowever, described we above. will take back theyour entire Annuity. 6.5% if you “free-look” The amount of any XTra CreditsAccount applied Value to can your be XT6 taken Annuity backcertain by circumstances: American Skandia under • any XTra Credits applied to your Account Value on Skandia takes back the XTra Creditstances. amount The under amount these we circum- take backwithout will adjustment equal up the or XTra down Credit, forTherefore, investment any performance. gain on the XTraback. Credit But amount if will there not was be a taken take loss back on will the still XTra equal Credit, amount thededuct of amount a the we CDSC XTra in Credit. any We situation doCredit where not amount. we During take the back first the 10 XTra asset-based Annuity charges Years, on the this total Annuity (includingCharge the and Insurance the Distribution Charge) areother higher annuities, than including many other of annuities our wecredits offer to that purchase apply payments. your Account Value. and allocate the amount of the Credit ($150 = $15,000 $15,000. We would apply a 1.0% Credit to your Purchase Payment allocate the amount of the Credit ($250 = $5,000 Assume that you make an additional Purchase Payment of We would apply a 5.0% Credit to your Purchase Payment and Additional Purchase Payment in Annuity Year 6 Assume that you make an additional Purchase Payment of $5,000. Account Value. Additional Purchase Payment in Annuity Year 2 continued dollar threshold that were transferred intoyou the transfer Sub-account. such If amount into awithin particular 30 Sub-account, calendar and days thereafter transferOut”) (the all “Transfer or a portion ofSub-account, that then amount upon into the another Transfer Out,Sub-account the becomes former restricted (the “Restricted Sub-account”). Specifically, we will not permittransfers subsequent into the Restricted Sub-account fordays 90 after calendar the Transfer Out ifinvests the in Restricted a Sub-account non-international Portfolio, orafter 180 the calendar Transfer days Out if thean Restricted international Sub-account Portfolio. invests For in purposes ofnot this count rule, transfers we made (i) in do connectionsystematic with programs, one such of as our asset allocationauto-mated and withdrawals; (ii) do not countsolely any involves transfer Sub-accounts that corresponding to anyPortfolio ProFund and/or the AST Money Marketnot Portfolio; categorize and as (iii) a do transfer theafter first the transfer Issue that Date, you if make youcalendar make days that after transfer the within Issue 30 Date.becomes Even restricted if under an the amount foregoing rules,free you to are redeem still the amount from your Annuity at any time. all contracts. That is, we may priceSub-accounts an on exchange the involving Valuation the Day subsequentation to Day the on Valu- which the exchangeimplementing request such was a received. practice, Before we wouldwritten issue notice a to separate Owners that explains the practice in detail. Contract owners in New York who purchased their contracts • We reserve the right to effect exchanges on a delayed basis for If we deny one or morerules, transfer we requests will under inform the you foregoing orof your the Financial circumstances Professional concerning promptly the denial. prior to March 15, 2004 areoutlined not in subject bulleted to paragraphs the immediately specific above. restrictions there In are addition, contract owners of differentthat variable are annuity funded contracts through the samesubject Separate to Account the that above-referenced are transfer not restrictionsmight and, make therefore, more numerous and frequentowners transfers who than are contract subject to suchcontract limitations. owners Finally, of there other are variable annuitycontracts contracts that or are variable issued life by Americaninsurance Skandia companies as that well have as the other sameportfolios underlying available mutual to fund them. Since somesubject contract to owners the are same not transfer restrictions,associated unfavorable with consequences such frequent trading withinfund the (e.g., underlying greater mutual portfolio turnover, higher transaction costs, or Once you have made 20 transfers among the Sub-accounts Frequent transfers among Sub-accounts in response to short- In light of the risks posed to Owners and other investors by Market Sub-account, or a Sub-account correspondingProFund to Portfolio), a we track amounts exceeding a certain during an Annuity Year, we willrequest accept during any that additional transfer year only ifwriting the with request an is original submitted signature to and usFor otherwise in purposes is of in this good 20 order. transfertransmission limit, as we a (i) “writing”, do (ii) not will viewsubmitted treat a on multiple facsimile the transfer same requests business daynot as count a any single transfer transfer, that and solely (iii)corresponding involves do to Sub-accounts any ProFund Portfolio and/orMarket the Portfolio, AST or Money any transfer thatprograms, involves such one as of asset our allocation systematic and automated withdrawals. term fluctuations in markets, sometimes calledcan “market make timing,” it very difficult forPortfolio’s a investments. Portfolio Frequent manager transfers to may manage cause a Portfolio the to hold more cash thanmanagement otherwise strategies, necessary, increase disrupt transaction costs, orperformance. affect Each Annuity offers Sub-accounts designedOwners for who wish to engage inmore frequent of transfers the (i.e., Sub-accounts one corresponding or toand the the ProFund AST Portfolios Money Market Portfolio),seeking and frequent we transfers encourage to Owners utilize those Sub-accounts. frequent transfers, we reserve the righttransfers to in limit any the Annuity number Year of forto all take existing the or other new actions Owners discussed and right below. to We limit also the reserve number the ofrefuse transfers any in transfer any request Annuity for Year an or(a) Owner to we or believe certain that Owners excessive if: transferspecific activity transfer (as request we or define group it) of ordetrimental transfer a effect requests on may Unit have Values a orlios; the or share (b) prices we of are the informed Portfo- portfolio by manager) a that Portfolio the (e.g., purchase by or thethe redemption Portfolio’s Portfolio of must shares be in restricted becausetransfer the activity Portfolio to believes which the such purchasewould and have redemption a relates detrimental effect onaffected the Portfolio. share Without prices limiting of the the above,scenario the where most either likely of the aboveaggregate could amount occur of would a be trade if or the large trades proportion represented of a the relatively total assetsfurtherance of of a our particular general Portfolio. authority In todescribed restrict above, transfers and as without limiting otherin actions the we future, may we take have adopted the following specific• restrictions: With respect to each Sub-account (other than the AST Money Managing Your Account Value

AMERICAN SKANDIA ANNUITIES PROSPECTUS 46 AMERICAN SKANDIA ANNUITIES PROSPECTUS 47 When a Dollar Cost Averaging program is established American Skandia may offer Fixed Allocations with Account Value allocated to the DCA Fixed Allocation will subject to a Market Value Adjustment. NOTE: The Dollar Cost Averaging program is not available if you Guarantee Periods of 6 months oruse 12 with months a exclusively Dollar for Cost AveragingAllocations”). program DCA (“DCA Fixed Fixed Allocations are designedautomatically to transfer Account Value in eitherpayments 6 under or a 12 Dollar Cost AveragingAveraging program. transfers Dollar will Cost begin on thethe day DCA following Fixed the Allocation date is establishedfollowing and until each the month entire principal amounttransferred. plus DCA earnings Fixed is Allocations may onlywith be your established initial Purchase Payment orPayments. additional You Purchase may not transfer existingDCA Account Fixed Value Allocation. to We a reserve theoffering right these to special terminate purpose Fixed Allocations at any time. be transferred to the Sub-accounts youDollar choose Cost under Averaging the program. If youCost terminate Averaging the program Dollar before the entireplus principal earnings amount has been transferred tomust the transfer Sub-account(s), all you remaining Account Valueinvestment to option. any Unless other you provide alternatethe instructions time at you terminate the DollarAccount Cost Value Averaging will program, be transferred toSub-account. the Transfers AST from Money Fixed Market Allocations asDollar part Cost of Averaging a program are notValue subject Adjustment. to However, a a Market Market Valueapply Adjustment if will you terminate the Dollarbefore Cost the Averaging entire program principal amount plustransferred earnings to has the been Sub-account(s). • Dollar Cost Averaging transfers from Fixed Allocations are not from a Fixed Allocation, the fixedAccount rate Value of is interest applied we to credit a tofers declining your of balance Account due Value to to the the trans- Period. Sub-accounts This during will the reduce Guarantee the effectiveAllocation rate over of the return Guarantee on Period. the Fixed have elected an automatic rebalancing programallocation or program. an Dollar asset Cost Averaging fromis Fixed not Allocations available if you electthe the Guaranteed Guaranteed Return Return Option. Option Plus or

2 or 3 years. earnings. If transferring principal plus earnings,must the be program designed to last theFixed entire Allocation. Guarantee Period for the You can Dollar Cost Average from Sub-accounts or Fixed Although our transfer restrictions are designed to

• You may only Dollar Cost Average earnings or principal plus • You may only use Fixed Allocations with Guarantee Periods of the following: subject to a number of rules that include, but are not limited to in a Dollar Cost Averaging program. Allocations. Dollar Cost Averaging from Fixed Allocations is Averaging program and we do not deduct a charge for participating minimum Account Value required to enroll in a Dollar Cost profit or protect against a loss in a declining market. There is no there is no guarantee that Dollar Cost Averaging will result in a This may result in a lower average cost of units over time. However, of market fluctuation on the investment of your Purchase Payment. amount at one time, Dollar Cost Averaging may decrease the effect investing amounts on a regular basis instead of investing the total program that transfers amounts monthly from Fixed Allocations. By quarterly, semi-annually, or annually from Sub-accounts, or a Dollar Cost Averaging program that transfers amounts monthly, principal plus earnings or a flat dollar amount. You may elect a other investment options. You can choose to transfer earnings only, an amount periodically from one investment option to one or more period. Dollar Cost Averaging allows you to systematically transfer Yes. We offer Dollar Cost Averaging during the accumulation DO YOU OFFER DOLLAR COST AVERAGING? transfer activity. preventing every potential occurrence of excessive prevent excessive transfers, they are not capable of not waive a transfer restriction for any contract owner. Financial Professional or third party investment advisor), and will apply these rules uniformly (including contracts managed by a specific and contract differences in transfer restrictions, we will owners invested in the affected options. Apart from jurisdiction- of an underlying mutual fund’s assets which may affect all contract activity since it may involve the movement of a substantial portion unfavorable consequences may be associated with management advisor manages a number of contracts in the same fashion between investment options that are discussed above, if the investment advisor are subject to the restrictions on transfers while contracts managed by a Financial Professional or third party performance or tax issues) may affect all contract owners. Similarly, continued ). GRO Plus is not available in all states. In some states SM Plus where GRO Plus is not availableOption we (GRO).) offer Both the the Guaranteed Balanced Return InvestmentPlus Program allow and you GRO to allocate aavailable portion Sub-accounts of while your ensuring Account that Value your towill Account the at Value least equal your contributionsand adjusted transfers for on withdrawals a specified date.is Under allocated GRO to Plus, and Account maintained Value inwe, Fixed in Allocations our to sole the discretion, extent deemguarantee it under is the necessary program. to This support differs our Investment from Program the where Balanced a set amountAllocation is regardless allocated of to the a performance Fixed ofSub-accounts the or underlying the interest rate environmentallocated after to the a amount Fixed is Allocation. Generally,Value more will of be your allocated Account to theprogram Sub-accounts than under under the the GRO Balanced Plus Investmentin Program periods (although of poor market performance,as low the interest option rates progresses and/or to itscase). maturity You date, may this not may want not to beexpect use the to either begin of taking these annuity programs payments ifwould before you be the completed. program In addition, asprograms, with amounts most that return are of available premium toSub-accounts allocate may to be the substantially less thandid they not would elect be a if return you ofinvestment premium experience program. in This the means Sub-accounts that, were if Account positive, Value your would grow at aelect slower a rate return than of if premium you program didAccount and not Value allocated to all the of Sub-accounts. your Balanced Investment Program We offer a balanced investment programAccount where Value a is portion allocated of to your aAccount Fixed Value Allocation is and allocated the to remaining theWhen Sub-accounts you that enroll you in select. the Balancedthe Investment duration Program, that you you choose wish thethe program duration to of last. the This Guarantee determines PeriodBased for on the the Fixed fixed Allocation. rate forcalculate the the Guarantee portion Period of chosen, your we Accountto Value the that Fixed must Allocation be to allocated grow(such to as a your specific initial “principal Purchase amount” Payment).based We on determine the the rates amount then inchoose. effect If for you the continue Guarantee the Period program you Guarantee until Period the and end make of no the withdrawalsend or of transfers, the at Guarantee the Period, theto Fixed equal Allocation the will “principal have amount”. grown Withdrawalsthe or Fixed transfers Allocation from before the end of the Guarantee Period will (GRO SM Any transfer to or from any Sub-account that is not part of There is no minimum Account Value required to enroll in DO YOU OFFER ANY AUTOMATIC REBALANCING PROGRAMS? Yes. During the accumulation period, weRebalancing offer among Automatic the Sub-accounts you choose.choose You to can have your Account Valuesemi-annually, rebalanced or monthly, annually. quarterly, On the appropriateSub-accounts date, you the chose are rebalanced totages the you allocation requested. percen- With Automatic Rebalancing,the we appropriate transfer amount from the “overweighted”the Sub-accounts “underweighted” to Sub-accounts to return yourthe allocations percentages to you request. For example,ance over of time the the Sub-accounts perform- will differ,allocations causing to your shift. percentage your Automatic Rebalancing program, will beSub-account made; will however, not that become part ofunless your we rebalancing receive program instructions from youlike indicating such that option you to would become part of the program. Automatic Rebalancing. All rebalancing transfers asAutomatic part Rebalancing of program an are not includedthe when number counting of transfers each yearof toward free the transfers. maximum We number do notan deduct Automatic a Rebalancing charge program. for Participation participating in in Rebalancing the program Automatic may be restricted ifcertain you other are optional enrolled programs. in Sub-accounts thatSystematic are Withdrawal part program of or a Dollar Costprogram Averaging will be excluded from anprogram. Automatic Rebalancing ARE ANY ASSET ALLOCATION PROGRAMS AVAILABLE? We currently do not offer anywith asset your allocation Annuity. programs Prior for to use Decemberasset 5, allocation 2005, programs we available. made If certain youasset enrolled allocation in programs one prior of to the DecemberAppendix 5, entitled, 2005, “Additional see Information the on thePrograms” Asset for Allocation more information on howadministered. the programs are DO YOU OFFER PROGRAMS DESIGNEDGUARANTEE TO A “RETURN OF PREMIUM”FUTURE AT DATE? A Yes. We offer two different programsinvest for in investors the who Sub-accounts wish but to alsoas wish of to a protect specific their date principal, inment the Program future. and They the are Guaranteed the Return Balanced Option Invest- Plus Managing Your Account Value

AMERICAN SKANDIA ANNUITIES PROSPECTUS 48 AMERICAN SKANDIA ANNUITIES PROSPECTUS 49 Even if this You must contact If your Financial Professional We do not offer advice about how to allocate your We are not a party to the agreement you have with Any fee that is charged by your investment advisor is in MAY I GIVE MY FINANCIALPERMISSION PROFESSIONAL TO FORWARD TRANSACTION INSTRUCTIONS? Yes. Your Financial Professional may forwardregarding instructions the allocation of your accounttransactions and between request investment financial options while yousubject are to living, our rules and unlessissued you on tell or us after otherwise. July For 21, annuities require 2006, affirmative subject consent to from our you rules, in wecial order will Professional to such give authority. your Finan- has this authority, we deem thatdirected all by transactions your that Financial are Professional withyour respect Annuity to have been authorized byus you. immediately if and when younot revoke be such responsible authority. for We acting will onProfessional instructions until from we your receive Financial notification ofperson’s the authority. revocation We of may such also suspend,privileges cancel at or any limit time. these We will notify you ifMAY we I do. AUTHORIZE MY THIRDMENT PARTY ADVISOR INVEST- TO MANAGE MYYes. ACCOUNT? You may engage your own investmentaccount. advisor These to investment manage advisors your may be firmsalso or are persons appointed who by us, or whoseappointed affiliated by broker-dealers us, are as authorized sellers ofis the the Annuities. case, however, please note thatadvisor the you investment engage to provide advice and/orfor make you, transfers is not acting on ouryour behalf, behalf. but rather is acting on Account Value under any circumstance. As such,responsible we for are any not recommendations such investment advisors make, any investment models or asset allocationchoose programs to they follow or any specific transfers they make on your behalf. addition to the fees and expensesyou that authorize apply your under investment your advisor Annuity. to If your withdraw Annuity amounts (to from the extent permitted)advisor’s to fee, pay as for with the any investment othermay withdrawal incur from adverse your tax Annuity, consequences, you avalue CDSC adjustment. and/or Withdrawals a to market pay yourgenerally investment will advisor also reduce the levelbenefit of guarantees various provided living (e.g. and the death withdrawalsproportionately will your reduce Annuity’s guaranteed minimum death benefit.) guaran-

Guaranteed Return Option Plus (GRO Plus)

Example Assume you invest $100,000. You chooseand a allocate 10-year a program portion of yourAllocation Account with Value a to 10-year a Guarantee Fixed Period.10-year The Guarantee rate Period for is the 2.50%*. Basedinterest on rate the for fixed the Guarantee Period0.781198 chosen, for the determining factor how is much ofwill your be Account allocated Value to the Fixed$78,120 Allocation. will That be means allocated that to theremaining Fixed Account Allocation Value and ($21,880) the will beSub-accounts. allocated Assuming to that the you do notwithdrawals make or any transfers from the Fixedgrow Allocation, to it $100,000 will at the endcourse of we the cannot Guarantee predict Period. the Of valueValue of that the was remaining allocated Account to theThe Sub-accounts.

* The rate inGuarantee Periods this of this example duration. is hypothetical and may not reflect the current rate for this Prospectus, for more information about this program. ciated with this program. See “Living Benefit Programs,” later in tions to support the guarantees provided. There is a fee asso- Account Value is the amount not allocated to the Fixed Alloca- needed to support the guarantees provided. The available you give us the right to allocate amounts to Fixed Allocations as to participate in market experience. Under the GRO Plus program, control of your available Account Value among the Sub-accounts as of a specific date in the future, but also wish to exercise (called the “Protected Principal Value”) against market downturns may be appropriate if you wish to protect a principal amount rate maturity period (and its anniversaries). The GRO Plus program guarantee amount at a higher Account Value subject to a sepa- program also offers you the option to elect a second, enhanced the Account Value on the effective date of the program. The maturity date thereafter, your Account Value will not be less than the program (“maturity date”) and on each anniversary of the tees that, after a seven-year period following commencement of in the Balanced Investment Program. or decrease in value. We do not deduct a charge for participating Sub-accounts is subject to market fluctuations and may increase available under your Annuity. Account Value you allocate to the cated to the Fixed Allocation between any of the Sub-accounts Adjustment. You can transfer the Account Value that is not allo- terminate the program and may be subject to a Market Value Allocations may not be available red exclusively for use with certain continued The interest rate credited to a Fixed Allocation is the rate in effect A Guarantee Period for a Fixed Allocation begins: that particular Guarantee Period; tion for that particular Guarantee Period; or Guarantee Period. To the extent permitted by law, we may establish different • when all or part of a net Purchase• Payment is allocated to upon transfer of any of your Account Value• to a Fixed Alloca- when you “renew” a Fixed Allocation by electing a new interest rates for Fixed Allocations offeredwho to choose a to class participate of in Owners variousprograms optional we investment make available. This mayto, include, Owners but who is elect not to limited useaveraging Fixed program Allocations (see under “Do a You dollar Offer cost a Dollar balanced Cost investment Averaging?”) program or (see “Dodesigned you to offer guarantee programs a “Return of Premium” at a future date?”). advance notice of large transactions, orlimitations impose on other your trading Financial Professional. YourProfessional Financial will be informed of allongoing such basis. restrictions We on may an also requireProfessional that transmit your all Financial financial transactions usingtronic the trading elec- functionality available through our(www.americanskandia.prudential.com). Internet website Limitations thatProfessional or we investment advisor mayadministrative under the impose terms agreement oftransactions the on requested do by an yourexcept not Owner as otherwise on described Financial their apply in this own Prospectus. behalf, HOW to DO THE FIXED financial ALLOCATIONSWe credit WORK? a fixed interest rateperiod to of the time Fixed called Allocation a throughout “Guarantee aare Period.” set offered Fixed Allocations with currently Guarantee Periods fromFixed 1 to 10 Allocations years. We of mayincluding make Fixed different Allocations durations offe optional investment available programs. Fixed inin the all future, statesPeriods and depending on may market factors not and other considerations. always be available for all Guarantee when the Guarantee Period begins and doesGuarantee not Period. change The during rates the are an effectiveWe annual determine rate the of interest interest. rates for thethe various time Guarantee that Periods. we At confirm your Fixedthe Allocation, interest we rate will in advise effect you and of theWe date may your change Fixed the Allocation rates matures. we creditAny new change Fixed in Allocations interest at rate any does time. notin affect effect Fixed before Allocations the that date were of therates change. for To Fixed inquire Allocations, as please to call the 1-800-752-6342. current Annuities where your Financial Professional or We or an affiliate of ours may provide administrative support Please Note: to licensed, registered Financial Professionals oradvisors Investment who you authorize to makebehalf. financial We transactions may on require your Financial Professionalsadvisors, or who investment are authorized by multiplefinancial contract transactions, owners to to enter make into anwith administrative American agreement Skandia as a conditionactions of on our your accepting behalf. trans- The administrativelimitations agreement on may the impose Financial Professional’s orability investment to advisor’s request financial transactions onlimitations your are behalf. intended These to minimize theFinancial detrimental Professional impact who of is a in aamounts position of to money transfer for large multiple clientstype in of a portfolio particular or Portfolio to or complytations with imposed specific by restrictions a or Portfolio(s) limi- of American Skandia. investment advisor has the authority tofinancial forward transactions instruction are on also subject totransfers the between restrictions investment on options that aresection discussed entitled in “ARE the THERE RESTRICTIONS ORTRANSFERS CHARGES BETWEEN ON INVESTMENT OPTIONS?” Since transfer activity directed by a Financial Professionalment or adviser third may party result invest- in unfavorablecontract consequences owners to invested all in the affectedright options, to we limit reserve the the investment optionsOwner available where to such a authority particular as describedto above a has Financial been Professional given or investmenttransfer advisor restrictions or we impose deem other necessary. Theagreement administrative may limit the available investment options, require your investment advisor and do notwithdrawn verify from that your amounts Annuity, including amountsdrawn with- to pay for the investmentthe advisor’s terms fee, of are your within agreement withYou your will, investment however, advisor. receive confirmations ofaffect transactions your that Annuity. If your investmentyour advisor Financial has Professional also with acted respect as toAnnuity, the he sale or of she your may beprovided receiving both compensation as for a services Financial ProfessionalAlternatively, and the investment investment advisor. advisor may compensatecial the Professional Finan- from whom you purchasedreferral your that Annuity led for you the to enterrelationship into with your the investment investment advisory advisor. Ifthe you details are about interested the in compensation thatand/or your your investment Financial advisor Professional receive inAnnuity, connection you with should your ask them for more details. Managing Your Account Value

AMERICAN SKANDIA ANNUITIES PROSPECTUS 50 AMERICAN SKANDIA ANNUITIES PROSPECTUS 51 We will credit interest on a new Fixed Allocation in an The interest rate we credit for a Fixed Allocation is subject to interest portion of United States Treasuryseparated securities from are ownership of the underlyingor principal corpus. amount United States Treasury securities. yields on corporate debt securities (adjustedoptions to on disregard such securities) and governmentcomparable debt duration. securities We of currently use the10 Merrill year Lynch Investment 1 Grade to Corporate Bondadjusted Index Spreads. of Option- Charge that we deduct from AccountSub-accounts. Value allocated to the existing Annuity at a rate notcrediting less to than Fixed the Allocations rate for we the areselected same then by Guarantee new Period Annuity purchasers in the same class. a minimum. Please refer to theInformation. Statement In of certain Additional states the interestminimum rate under may state be law subject or to regulation. a HOW DOES THE MARKET VALUEWORK? ADJUSTMENT If you transfer or withdraw Accountmore Value than from 30 a days Fixed before Allocation theadjust end the of value its of Guarantee your Period, investment we“Market based will Value on Adjustment” a or formula, “MVA”. called The a Value amount Adjustment of can any be Market either positiveon or the negative, movement depending of a combinationOption-adjusted of Spread Strip (each Yields as on defined Strips below) andthat between an you the purchase time the Fixed Allocationtransfer and or the withdrawal. time The you Market make Value a compares Adjustment the formula combination of Strip YieldsOption-adjusted for Spreads Strips as and of the the datebegan the with Guarantee the Period combination of StripOption-adjusted Yields Spreads for as Strips of and the the datelated. the In MVA certain is states being the calcu- amountment of may any be Market limited Value under Adjust- stateis law governed or by regulation. the If laws your of Annuity ment that that state, applies any will Market be Value subject Adjust- such to law our or rules regulation. for complying with • “Strips” are a form of security where ownership of the • “Strip Yields” are the yields payable on coupon• Strips of “Option-adjusted Spread” is the difference between the

American Skandia may offer Fixed Allocations with On the Maturity Date of the Short-term Fixed Allocation,

Guarantee Periods of 3 months oras 6 a months short-term exclusively Fixed for Allocation use (“Short-termAllocations”). Fixed Short-term Fixed Allocations may onlylished be with estab- your initial Purchase PaymentPurchase or Payments. additional You may not transferValue existing to Account a Short-term Fixed Allocation.terminate We offering reserve these the special right purpose to Fixedany Allocations time. at the Account Value will be transferredyou to choose the at Sub-account(s) the inception ofare the provided, program. such If Account no Value instructions willAST be Money transferred Market to Sub-account. the Short-term Fixedmay Allocations not be renewed on theAnnuity Maturity or Date. transfer If any you Account surrender Value the Fixed from Allocation the to Short-term any other investmentend option of before the the Guarantee Period, awill Market apply. Value Adjustment are similar to those we consider in determining the Insurance economic trends and competition. Some of these considerations our insurance risks in relation to the Fixed Allocations, general we make, commissions, administrative and investment expenses, requirements, liquidity of the markets for the type of investments the Guarantee Period for the Fixed Allocation, regulatory and tax determining rates we also consider factors such as the length of ments, asset-backed obligations and municipal bonds. In corporate debt obligations of different durations, private place- its agencies and instrumentalities, money market instruments, debt securities guaranteed by the United States government and fixed rate guarantees. These investment types may include cash, available on the types of investments we make to support our we offer for Fixed Allocations will reflect the investment returns interest rates for Fixed Allocations. Generally the interest rates We do not have a specific formula for determining the fixed FIXED ALLOCATIONS? HOW DO YOU DETERMINE RATES FOR

program is at our sole discretion. not participate in an optional investment program. Any such purchasers who choose the same Guarantee Period but who do of purchasers may be different than those offered to other The interest rate credited to Fixed Allocations offered to this class = = N/365 N/365 = 0.970345 = 1.027078 2 2 You can then elect to allocate the Factor = $59,448.56 Factor = $56,164.78. [1.055/1.041] [1.055/1.071] Interim Value = $57,881.25 Interim Value = $57,881.25 MVA Factor = [(1+I)/(1+J+0.0010)] MVA Factor = [(1+I)/(1+J+0.0010)] Account Value after MVA = Interim Value x MVA Account Value after MVA = Interim Value x MVA continued If you do not specify how you want a Fixed Allocation Example of Negative MVA Assume that at the time you requestYields the for withdrawal, Strips the maturing Strip on the Maturityadjusted Date Spread plus is the 7.00% Option- (J = 7.00%).the Based MVA on would these be assumptions, calculated as follows: WHAT HAPPENS WHEN MY GUARANTEE PERIOD MATURES? The “Maturity Date” for a FixedGuarantee Allocation Period. is Before the the last Maturity day Date, ofrenew you the the may Fixed choose Allocation to for asame new or Guarantee different Period length of or the youFixed may Allocation’s transfer Account all Value or to part another ofone Fixed that or Allocation more or Sub-accounts. to We willchoose not to charge renew a a MVA Fixed if Allocation you transfer on the its Account Maturity Value Date to or onenotify or you more before Sub-accounts. the We end will ofinterest the rates Guarantee that Period we about are the currently fixed tions crediting that to are all being Fixed offered. Alloca- TheAllocations rates may being change credited before to the Fixed Maturity Date. to be allocated on its Maturitythe Date, Account we Value will of then the transfer FixedMoney Allocation Market to Sub-account. the AST Account Value to any of theAllocation. Sub-accounts or to a new Fixed Example of Positive MVA Assume that at the time youYields request for the Strips withdrawal, maturing the on Strip theadjusted Maturity Spread Date is plus 4.00% the (J Option- =tions, 4.00%). the Based MVA on would these be assump- calculated as follows: N/365 N/365 [(1 + I)/(1 + J)] [(1+I) / (1+J+0.0010)] is the number of days remaining in the original Guarantee is the Strip Yield as of the date the MVA formula is being is the Strip Yield as of the start date of the Guarantee as the “Allocation Date” in thesePeriod examples) of with 5 a years Guarantee (we referthese to examples). this as the “Maturity Date” in Date and maturing on Maturity DateSpread plus is the 5.50% Option-adjusted (I = 5.50%). withdraw the entire Fixed Allocation after(3) exactly years, three at which point 730Date days (N remain = before 730). the Maturity I Period for coupon Strips maturing atGuarantee the Period end plus of the the Option-adjusted applicable Spread.are If no there Strips maturing at thatYield time, for we the will Strips use maturing the as Strip Guarantee soon Period as ends. possible after the J applied for coupon Strips maturing atapplicable the Guarantee end Period of plus the the Option-adjustedIf Spread. there are no Strips maturingStrip at Yield that for time, the we Strips will maturing usethe as the Guarantee soon Period as ends. possible after N Period. If you surrender your Annuity underprovision, the the right MVA to formula cancel is: MVA Examples The following hypothetical examples show thein effect determining of Account the Value. MVA Assume the• following: You allocate $50,000 into a Fixed Allocation (we refer to this • The Strip Yields for coupon Strips beginning on Allocation • You make no withdrawals or transfers until you decide to where: MVA Formula The MVA formula is applied separatelydetermine to the each Account Fixed Value Allocation of to theular Fixed date. Allocation The on formula a is partic- as follows: Managing Your Account Value

AMERICAN SKANDIA ANNUITIES PROSPECTUS 52 AMERICAN SKANDIA ANNUITIES PROSPECTUS 53 from your Annuity during each Annuitytion Year of without any applica- CDSC that mightapplied. otherwise We be call applicable this being the “FreeWithdrawal Withdrawal” amount amount. is The not Free available ifsurrender you your choose Annuity. to Amounts withdrawn asWithdrawal a do Free not reduce the amountapply of upon CDSC a that subsequent may withdrawal orAnnuity. surrender The of minimum your Free Withdrawal you$100. may request is drawal amount. The maximum amount thatdraw you will may depend with- on your Annuity’sdate Surrender we Value process as the of withdrawal the request.withdrawal, After your any Annuity partial must have aleast Surrender $1,000, Value or of we at may treatas the a partial request withdrawal to request fully surrenderpartial your withdrawal Annuity. you The may minimum request isTo $100. determine if a CDSC applies to partial withdrawals, we: Withdrawal. These amounts are not subject to the CDSC. withdrawals of Purchase Payments. Amounts inFree excess Withdrawal of amount the will be treatedPurchase as Payments withdrawals unless of all Purchase Paymentspreviously have withdrawn. been These amounts are subjectCDSC. to Purchase the Payments are withdrawn onout a basis. first in, first Value. These amounts are not subjectYou to may the request CDSC. a withdrawal for an exact dollar amount Partial withdrawals may also be available following annuitiza- To request the forms necessary to make a withdrawal from CAN I WITHDRAW A PORTIONYes, OF you MY can make ANNUITY? a withdrawal• during the accumulation period. To meet liquidity needs, you can withdraw a limited amount • You can also make withdrawals in excess of the Free With- 1. First determine what, if any, amounts qualify as2. a Free Next determine what, if any, remaining amounts are 3. Withdraw any remaining amounts from any other Account after deduction of any CDSC thatwithdrawal”) applies or (called request a a “net gross withdrawaldeduct from any which CDSC we that will applies, resultingpayable in to less you money than being the amountnet you withdrawal, requested. the If amount you deducted request from a pay your the Account CDSC Value may to also be subject to a CDSC. tion but only if you choose certain annuity payment options. your Annuity, call 1-800-752-6342 or visitwww.americanskandia.prudential.com. our Internet Website at

, you may be subject to a 10% penalty 2 ⁄ 1

exchange or other qualifying transfer. on the tax-basis from a prior contract in the case of a 1035 as ordinary income. The tax basis in your Annuity may be based has been distributed, the remaining annuity payments are taxable basis you have in your Annuity. Once the tax basis in your Annuity each annuity payment should be treated as a return of any tax “exclusionary rules” that we use to determine what portion of the time of the payment. The Code and regulations have is taxed as ordinary income at the tax rate you are subject to at During the annuitization period, a portion of each annuity payment to the taxpayer’s age 59 During the Annuitization Period non-taxable exchange or transfer. If you take a distribution prior distribution. any investment gain unless the distribution qualifies as a consult a professional tax advisor for advice before requesting a generally subject to ordinary income taxation on the amount of in addition to ordinary income taxes on any gain. You may wish to your “tax basis”, if any. Distributions from your Annuity are first from any “gain” in your Annuity and second as a return of A distribution during the accumulation period is deemed to come During the Accumulation Period (For more information, see “Tax Considerations.”) DISTRIBUTIONS? ARE THERE TAX IMPLICATIONS FOR fully below. request. Each of these types of distributions is described more in the investment options at the time we receive your withdrawal ently, withdrawals are taken pro-rata based on the Account Value These are called “Free Withdrawals.” Unless you notify us differ- available to you each Annuity Year that are not subject to a CDSC. tions being withdrawn or surrendered. Certain amounts may be may also apply a Market Value Adjustment to any Fixed Alloca- Charge that applies and the charge for any optional benefits. We CDSC, we may deduct the Annual Maintenance Fee, any Tax if applicable. If you surrender your Annuity, in addition to any of the Account Value being withdrawn or surrendered as a CDSC, also surrender your Annuity at any time. We may deduct a portion where required for tax purposes, Minimum Distributions. You can Value through partial withdrawals, Systematic Withdrawals, and During the accumulation period you can access your Account TO ME? WHAT TYPES OF DISTRIBUTIONS ARE AVAILABLE Access To Account Value that are 2 ⁄ 1 You may also annuitize your contract and begin receiving Minimum Distributions are a type of Systematic Withdrawal we The amount of the required Minimum Distribution for your You may also annuitize your contract and begin receiving request a program that complies withmust Sections provide 72(t)/72(q), us you with certain requiredform information acceptable in to writing us. on We a mayto require calculate advance the notice amount to of allow 72(t)/72(q) us Value withdrawals. of The your Surrender Annuity must beallow at you least to $20,000 begin before a we program will Sections for 72(t)/72(q). withdrawals The under minimum amount fordrawal any is such $100 with- and payments maysemi-annually be or made annually. monthly, quarterly, payments for the remainder of yourmeans life of (or receiving life income expectancy) payments as before a not age subject 59 to the 10% penalty. WHAT ARE MINIMUM DISTRIBUTIONS ANDWOULD WHEN I NEED TO MAKE(See THEM? “Tax Considerations” for a furtherDistributions.) discussion of Minimum allow to meet distribution requirements under Sections408 401, of 403(b) the or Code. Minimum distribution rulesduring do the not Owner’s apply lifetime. to Under Roth the IRAs Code,begin you receiving may periodic be amounts required from to your Annuity.will In allow such you case, to we make Systematic Withdrawalssatisfy in the amounts minimum that distribution rules under theassess Code. a We CDSC do on not Minimum Distributions fromrequired your by Annuity law if to you take are such MinimumAnnuity Distributions at from the your time it is taken.be However, assessed a on CDSC that (if portion applicable) of may ato Systematic satisfy Withdrawal the that minimum is distribution taken requirements insavings relation or to investment other plans under other qualifiednot retirement maintained plans with American Skandia. particular situation may depend on otherinvestments. annuities, We savings will or only calculate theMinimum amount Distribution of based your on required the valuerequire of three your (3) Annuity. days We advance writtenprocess notice the to amount calculate of and your payments.Minimum You Distributions may paid elect out to monthly, have quarterly,or semi-annually annually. The $100 minimum amountWithdrawals that applies applies to to monthly Systematic minimum distributionsnot but apply does to Minimum Distributions takensemi-annual out or on annual a basis. quarterly, payments for the remainder of yourmeans life of (or receiving life income expectancy) payments as and a Distribution satisfying requirements the under Minimum the Code. continued if you elect to receive distributions as a 2 ⁄ 1 Systematic Withdrawals can be made from Account Value The minimum amount for each Systematic Withdrawal is series of “substantially equal periodic payments”.issued For as contracts nonqualified annuities, the Internalprovides Revenue for Code the same exemption fromof penalty the under Code. Section Distributions 72(q) received underAnnuity these Year provisions that in exceed any the maximumfree amount withdrawal available will as be a subject toapply any a applicable Market CDSC. Value We Adjustment may to any Fixed Allocations. To HOW MUCH CAN I WITHDRAWWITHDRAWAL? AS A FREE The maximum Free Withdrawal amount duringis each equal Annuity to Year 10% of allCDSC. Purchase Withdrawals Payments made that within are an subject Annuity toWithdrawal Year a amount reduce available the for Free the remainderYear. of If the you Annuity do not makeare a not withdrawal allowed during to an carry Annuity over Year,next the you Annuity Free Year. Withdrawal amount to the CAN I MAKE PERIODIC WITHDRAWALSANNUITY FROM DURING MY THE ACCUMULATION PERIOD? Yes. We call these “Systematic Withdrawals.”Systematic You Withdrawals can of receive earnings only orSystematic a Withdrawals flat may dollar be amount. subject todetermine a whether CDSC. a We CDSC will applies andway the as amount we in would the for same a partial withdrawal. allocated to the Sub-accounts or FixedSystematic Allocations. Withdrawals Generally, from Fixed Allocations areearnings limited accrued to after the program ofbegins, Systematic or Withdrawals payments of fixed dollarsuch amounts earnings. that Systematic do Withdrawals not are exceed availablemonthly, on quarterly, a semi-annual or annual basis. $100. If any scheduled Systematic Withdrawal$100 is (which for may less occur than under aan program amount that equal provides to payment the of earningsrequested), in we your may Annuity postpone for the the withdrawal period expected and amount add to the the amount thatnext is scheduled to Systematic be Withdrawal. withdrawn on the DO YOU OFFER A PROGRAMUNDER FOR SECTIONS WITHDRAWALS 72(t)/72(q) OF THEREVENUE INTERNAL CODE? Yes. If your Annuity is usedretirement as plans a that funding receive vehicle special for tax certain 401, treatment 403(b), under 408 Sections or 408A ofmay the provide Code, an Section exception 72(t) to of the themade 10% Code prior penalty to tax age on 59 distributions Access To Account Value

AMERICAN SKANDIA ANNUITIES PROSPECTUS 54 AMERICAN SKANDIA ANNUITIES PROSPECTUS 55 payments or adjustable annuity payment options or any other option must also be alive at such time; ment in a Medical Care Facilityform or satisfactory Fatal to Illness us; in writing on a received exceed $500,000 for all annuitiesthis issued benefit by where us the with same personand is named as Annuitant; A “Contingency Event” occurs if the Annuitant is: in force and remains confined for at least 90 days in a row;is or in force. The definitions of “Medical Care Facility” and “Fatal Illness,” as • if the Owner is one or more natural• persons, all such Owners we must receive satisfactory proof of the Annuitant’s confine- • this benefit is not available if the total Purchase Payments • no additional Purchase Payments can be made to the Annuity. • first confined in a “Medical Care Facility” while• your Annuity is first diagnosed as having a “Fatal Illness” while your Annuity well as additional terms and conditions, areSpecific provided details in and your definitions Annuity. in relation tocertain this jurisdictions. benefit may differ in WHAT TYPES OF ANNUITY OPTIONSAVAILABLE? ARE We currently make available annuity options thatannuity provide payments, fixed variable annuity payments. Your contract provides certain fixed annuityoptions. payment We currently offer variable annuity paymentare options, provided which by exchanging the deferred annuitythis contract prospectus described for in a separate contract issuedment as option an and annuity described settle- in a separateannuity prospectus. payment The options variable are described in detailprospectus, in which a is separate available upon request andprovided which to will you be if and when youpayment elect options. one The of separate the prospectus variable sets annuity forthcharges the under fees the and variable payment option, whichthose may set be forth higher in than this prospectus. Wemake do available not variable guarantee annuity to continue to other than the fixed annuity payment optionscontract. set Fixed forth options in provide your the same amountVariable with options each generally payment. provide a payment whichdecrease may depending increase on or the investment performance ofSub-accounts the and may include a guarantee feature.options Adjustable provide a fixed payment that iscurrent periodically interest adjusted rates. based Please on refer to theIncome “Guaranteed Benefit,” Minimum the “Lifetime Five Income BenefitLifetime and Five the Income Spousal Benefit,” under “Living Benefits” below for a

Annuitant must have been accepted by“Contingency us, Event” prior described to below the in ordermedically-related to surrender; qualify for a proceeds of such surrender request; This waiver of any applicable CDSC is subject to our rules, Under certain annuity payment options, you may be allowed To request the forms necessary to surrender your Annuity, For purposes of calculating any applicable CDSC on surrender,

• the Annuitant must be alive as of the date we pay the • The Annuitant must have been named or any change of including but not limited to the following: described above. surrenders, we similarly reserve the right to take back XTra Credits as time pursuant to a salary reduction program). With respect to partial medically-related surrender (e.g. Purchase Payments received at such Purchase Payments received after our receipt of your request for a and (b) the amount of any XTra Credits added in conjunction with any prior to your request to surrender your Annuity under this provision; XT6, (a) the amount of any XTra Credits applied within 12 months the amount payable will be your Account Value minus, with respect to Adjustment to any Fixed Allocations. If you request a full surrender, “Contingency Event” as defined below. We may apply a Market Value otherwise applicable CDSC upon occurrence of a medically-related your Annuity prior to the Annuity Date without application of any Where permitted by law, you may request to surrender all or part of AND HOW DO I QUALIFY? WHAT IS A MEDICALLY-RELATED SURRENDER www.americanskandia.prudential.com. to surrender your Annuity for its then current value. call 1-800-752-6342 or visit our Internet Website at Market Value Adjustment to any Fixed Allocations. remaining Account Value or withdrawal amount. We may apply a would be greater than if it were calculated as a percentage of the remaining Account Value or withdrawal request. Thus, the CDSC Purchase Payments being withdrawn, rather than as a percentage of determine the CDSC amount as the applicable percentage of the value due to negative market performance. In that scenario, we would the Free Withdrawal provision or if your Account Value has declined in This is most likely to occur if you have made prior withdrawals under remaining Account Value or the amount of your withdrawal request. the Purchase Payments being withdrawn may be greater than your longer have any rights under the surrendered Annuity. Surrender Value. Upon surrender of your Annuity, you will no Annuity at any time. Upon surrender, you will receive the Yes. During the accumulation period you can surrender your CAN I SURRENDER MY ANNUITY FOR ITS VALUE? Under this Under this option, Under this option, Under this option, you cannot make a partial that, while the key life is alive, the annuity Note that under this option, payments are not except This Option is currently available on a fixed or variable If you choose this option on a variable basis, you will be Under this option, benefits are payable as described in income is payable until the death oflife the dies key before life. the However, end if of the the key remaining period payments selected are (5, paid 10 to or the 15 Beneficiaryperiod. years), until the the end of such basis. provided with a separate prospectus that describesannuity. such If variable you elect to receive paymentsthis on option, a you variable can basis request under partial orreceive full its surrender then of current the cash annuity value and (if any) subjectOption to our 4 rules. Fixed Payments for a Certain Period: income is payable periodically for athe specified payee number dies of before years. the If endthe of remaining the payments specified are number paid of to years, of the such Beneficiary period. until the end based on any assumptions of lifeportion expectancy. of Therefore, the that Insurance Charge assessedkey to lives cover outlive the our risk expectations that providesselecting no this benefit option. to an Owner or full surrender of the annuity. Option 5 Variable Payments for Life with a Cashoption, Value: benefits are payable periodically until thelife. death Benefits of may the increase key or decrease dependingment on performance the of invest- the Sub-accounts. This optionvalue has that a also cash varies with the investmentSub-account. performance The of cash the value provides a “cushion”investment from performance volatile so that negative investment performance does not automatically result in a decreaseeach in month, the and annuity positive payment investment performance doesmatically not result auto- in an increase in theThe annuity cushion payment generally each “stabilizes” month. monthly annuity payments.cash Any value remaining on the death ofBeneficiary the in key a life lump sum is or paid as tooption, periodic the you payments. can Under request this partial or fullreceive surrender its of then the current annuity cash and value (ifchoose any) this subject option, to you our will be rules. If providedthat you with describes a such separate variable prospectus annuity. Option 6 Variable Payments for Life with atee: Cash Value and Guaran- Option 5; Option 3 Payments for Life with a Certain Period: continued If you choose If you choose It is possible This Option is It is possible that This Option is Under this option, income is Under this option, income is payable periodi- When you purchase an Annuity, or at a later date, you may Certain of these annuity options may be available to Benefi- Please note, with respect to XT6, you may not annuitize within Payments for Life: Option 2 Payments Based on Joint Lives: payable periodically during the joint lifetimethereafter of during two the key remaining lives, lifetime and ofwith the the survivor, last ceasing payment prior tonumber the of survivor’s payments death. is No guaranteed minimum under this option. that only one payment will belives payable occurs if before the the death date of the allother second the payments payment key or was death due, benefits and would no currently be available payable. on a fixed orthis variable option basis. on a variable basis,prospectus you that will describes be such provided variable with annuity. ayou Under separate cannot this make option, a partial or full surrender of the annuity. description of annuity options that are availablebenefits. when For you additional elect information these on annuity paymentmay options request you a Statement of Additional Information. choose an Annuity Date, an annuityannuity option payments. and You the may frequency change of yourAnnuity choices Date before under the the terms ofAnnuity your Date contract. may A be maximum required bydepend law. on The the Annuity annuity Date option may youmay choose. not Certain be annuity available options depending on the age of the Annuitant. ciaries who choose to receive theseries Death of Benefit payments proceeds instead as of a a lump sum payment. the first three Annuity Years and withyou respect may to not ASAP annuitize III within and the APEX first II, Annuity Year. Option 1 Access To Account Value this option on a variable basis,prospectus you that will describes be such provided variable with annuity.you a Under cannot separate this make option, a partial or full surrender of the annuity. cally until the death of thesection) “key is life”. the The person “key or life” personsare (as upon based. used whose No in life additional this annuity annuity payments paymentsdeath are of made the after key the life. Sinceguaranteed, no this minimum option number offers of the payments largestpayments is amount of of the periodic life contingent annuityonly options. one payment will be payablebefore if the the date death the of second the paymentpayments key was nor life due, death occurs and benefits no would other becurrently payable. available on a fixed or variable basis.

AMERICAN SKANDIA ANNUITIES PROSPECTUS 56 AMERICAN SKANDIA ANNUITIES PROSPECTUS 57 (Options 1–3) We calculate each annuity payment amount bythe multiplying number of units scheduled to beschedule redeemed of under units a for each Sub-account byeach the Sub-account Unit on Value the of annuity payment date. We • Variable Payments Value, minus any state premium taxes thatdetermined may from apply, our by table the of factor annuity rates.rates The differs table based of on annuity the type ofof annuity payment chosen selected. and Our the rates frequency will notminimum be rates. less These than guaranteed our minimum guaranteed rates arethe derived a2000 from Individual Annuity Mortality Table withinterest an rate assumed of 3% per annum. Wherelation, required such by annuity law table or will regu- have ratesaccording that to do the not gender differ of the keydiffer life. according Otherwise, to the the rates gender will of theVariable key life. Annuity Payments Generally, we currently offer three differentannuity types payment of options. variable The following isthe a variable brief annuity description payment of options. Ifannuity you payment choose option, a you variable will beprospectus provided that with describes a such separate variable annuity.guarantee There that is we no will continue toannuity make payment available options. variable The first annuitylated payment based will upon be the calcu- assumed investmentselect return the (“AIR”). AIR You before we startnot to receive make annuity annuity payments payments. until You you will remaining choose annuity an payments AIR. will The fluctuate basedance on of the the perform- Sub-accounts relative tofactors the described AIR, below. as The well greater as the other annuity AIR, payment. the A greater higher the AIR first maygrowth result in in the smaller annuity potential payments. Ainitial lower annuity AIR payment. results Within in payment a options lower Sub-accounts 1-3, you if choose the perform exactly thethen same subsequent as annuity the payments AIR, will beannuity the payment. same If as the the Sub-accounts first youthan choose the perform AIR, better then subsequent annuitythan payments the will first be annuity higher payment. Ifperform the worse Sub-accounts than you the choose AIR, thenwill subsequent be annuity lower payments than the first.cash Within value payment for options the 5 Annuitant and (while 6,time alive) the during and which a annuity variable payments period will of the be Annuitant made is whether still or alive not areof adjusted the based Sub-accounts on relative the to performance theannuity AIR; payments however, do subsequent not always increasethe or performance decrease of based the on Sub-accounts relative to the AIR. We charge an Under this option, any

calendar month following the later ofbirthday the or Annuitant’s the 85th fifth anniversary ofto our purchase receipt an of Annuity; your and request lated on a fixed basis under10 Option years 3, certain. Payments for Life with If you choose to defer the Annuity Date beyond the default You have a right to choose your annuity start date. If you have We may make different annuity payment options available in

first annuity payment is determined by multiplying the Account payment option and payment frequency you select. Generally, the amount of the fixed payment will vary depending on the annuity equal fixed-dollar payments throughout the period you select. The If you choose to receive fixed annuity payments, you will receive Fixed Annuity Payments (Options 1–4) HOW ARE ANNUITY PAYMENTS CALCULATED? an annuity for federal income tax purposes. you will assume the risk that your Annuity will not be considered that year. By choosing to continue to defer after the default date, subsequent year’s increase in Account Value would be taxable in that time will become immediately taxable to you. Further, each under the tax law. If that should occur, all gain in your Annuity at • the annuity payments, where allowed by law, will be calcu- date, the IRS may not consider your contract to be an annuity

• a default date for the Annuity Date will be the first day of the in writing, then: not provided us with your Annuity Date or annuity payment option Annuity Date occurs during the period that a CDSC would apply. Date. Certain annuity payment options may not be available if your CDSC would apply were you to surrender your Annuity on the Annuity annuity or an annuity with a certain period of at least 5 years if any Unless prohibited by law, we require that you elect either a life PAYMENT OPTION? HOW AND WHEN DO I CHOOSE THE ANNUITY the fixed annuity payment options set forth in your contract. variable annuity payment options or any other option other than the future. We do not guarantee to continue to make available prospectus that describes such variable annuity. you choose this option, you will be provided with a separate receive its then current cash value (if any) subject to our rules. If option, you can request partial or full surrender of the annuity and Beneficiary in a lump sum or as periodic payments. Under this generally is equal to the firstadditional annuity amount payment. for this guarantee. cash value remaining on the death of the key life is paid to the payment will not be less than a guaranteed amount, which ) anniversary of th (Option 6) this payment option cushions the immediateSub-account impact performance of by adjusting the lengthtime of during the which annuity payments willwhether be or made not the Annuitant ismaintaining alive a while level generally annuity payment amount. Sub-account performance that exceeds a benchmarkwill rate generally extend this time period,performance while that Sub-account is less than agenerally benchmark shorten rate the will period. If theand period the reaches Annuitant zero is still alive,continue, Annuity however, Payments the annuity payment amountdepending will on vary Sub-account performance, similar to conventional variable payments. The AIR foris this 4%. option Minimum This option provides guaranteed payments forsame life manner in as the Stabilized Variable Paymentsabove). (described In addition to the stabilizationalso feature, guarantees this that option variable annuity paymentsbe will less not than the initial annuityregardless payment of amount Sub-account performance. The AIRoption for is this 3%. • Stabilized Variable Payments with a Guaranteed receiving annuity payments, the annuity paymentadjusted amount upward is or downward depending oncurrently the crediting rate to we annuity are payments. Theannuity adjustment payment in amount the does not affectremaining the annuity duration payments, of only the amount of each payment. Adjustable Annuity Payments We may make an adjustable annuityAdjustable payment annuity option payments available. are calculated similarlyannuity to payments fixed except that on every fifth (5 continued (Option 5) annuity payment amount by multiplying the initial This option provides guaranteed payments forvalue life, for a the cash Annuitant (while alive)of and time a during variable which period annuity paymentswhether will or be not made the Annuitant isthe still alive. We calculate number of units scheduled to beschedule redeemed of under units a by the Unitannuitization Values date. determined The on schedule the of unitsfor is each established Sub-account you choose ondate the based annuitization on the applicable benchmarkthe rate, AIR, meaning and the annuity factors.reflect The our annuity assumptions factors regarding the costsbear we in expect guaranteeing to payments for theAnnuitant lives and of will the depend on theannuitant’s benchmark attained rate, age the and gender (whereUnlike permitted). variable payments (described above) wherepayment each can vary based on Sub-account performance, determine the schedule of units based onValue your (minus Account any premium tax that applies)elect at to the begin time receiving you annuity payments. Theunits schedule will of vary based on the annuityselected, payment the option length of any certain periodAnnuitant’s (if age applicable), and the gender (if annuity paymentsthe are life due of for the Annuitant) and theSub-accounts Unit you Value initially of selected the on the Issuecalculation Date. is The performed for each Sub-account, andof the the sum Sub-account calculations equals the amountannuity of payment. your Other than to fund annuitynumber payments, of the units allocated to each Sub-accountchange will unless not you transfer among the Sub-accountsmake or a withdrawal (if allowed). You canAIRs select for one these of options: three 3%, 5% or 7%. • Stabilized Variable Payments Access To Account Value

AMERICAN SKANDIA ANNUITIES PROSPECTUS 58 AMERICAN SKANDIA ANNUITIES PROSPECTUS 59 SM ) SM We offer a program that, after a seven-year period following The Guaranteed Return Option Plus describedonly below being is offered in those jurisdictionsreceived where regulatory we approval, have and will besubsequently offered in other jurisdictions when weregulatory receive approval in those jurisdictions. Certainand terms conditions may differ between jurisdictionsapproved. once The program can be electedpurchasers by on new the Issue Date ofbe their elected Annuity, by and existing can Annuity Ownersanniversary on of either the the Issue Date ofdate their other Annuity than or that on anniversary, a asunder described “Election below of the Program”. TheOption Guaranteed Plus Return is not available ifReturn you Option elect program the (and Guaranteed it isGuaranteed currently Minimum active), Withdrawal the Benefit rider, the Guaranteed Minimum Income Benefit rider, theFive Lifetime Income Benefit rider, the SpousalIncome Lifetime Benefit Five rider, the Highest DailyBenefit, Value or Death the Dollar Cost Averaginginvolves program transfers if out it of the Fixed Allocations. GUARANTEED RETURN OPTION Plus (GRO Plus commencement of the program (we referand to any the applicable end subsequent of period that as period on the each “maturity anniversary date”) of and the maturityprogram date remains thereafter in while effect, the guarantees yourbe Account less Value than will your not Account Valueprogram on (called the the effective “Protected date Principal of Value”). your offers The you program the also opportunity to electteed a amount second, at enhanced a guaran- later datewhile if preserving your the Account guaranteed Value amount has established increased, effective on date the of your program. The(called enhanced the guaranteed “Enhanced amount Protected Principal Value”)after guarantees a that, separate period following electionguarantee of and the on enhanced each anniversary thereafterenhanced while guarantee this amount remains in effect, your Account

withdraw not less than a principal amount over time; your principal, if it is toof be lifetime used income as payments; the or basis for certain types The “living benefits” that American Skandia offers are the specified future dates due to investment performance;

the withdrawal benefit and annuity payments). solutions to your needs (e.g., comparing the tax implications of both between these benefits and in comparison to other potential implications of these different approaches to meeting your needs, note that among them you may want to evaluate the tax your financial needs. There are many factors to consider, but we of these optional benefits may be appropriate for you based on should consult with your Financial Professional to determine if any restrictions apply if you elect certain optional living benefits. You conditions and limitations of each optional benefit. Investment descriptions that follow for a complete description of the terms, Spousal Lifetime Five Income Benefit. Please refer to the benefit Income Benefit (GMIB), the Lifetime Five Income Benefit and the Minimum Withdrawal Benefit (GMWB), the Guaranteed Minimum • guaranteeing a minimum amount of growth will be applied to • providing spousal continuation of certain benefits. Guaranteed Return Option Plus (GRO Plus), the Guaranteed • taking withdrawals with a guarantee that you will be able to • protecting a principal amount from decreases in value as of flexibility to invest in the Sub-accounts while: Depending on which optional benefit you choose, you can have which you intend to make use of your Annuity while you are alive. that may be appropriate for you depending on the manner in guarantee, regardless of the performance of the Sub-accounts, investment options. Each optional benefit offers a distinct type of tional cost has the impact of reducing net performance of the provided under the optional Living Benefit Programs, the addi- while they are alive. Notwithstanding the additional protection tional charge, that can provide investment protection for Owners American Skandia offers different optional benefits, for an addi- OWNERS WHILE THEY ARE ALIVE? PROVIDE INVESTMENT PROTECTION FOR DO YOU OFFER PROGRAMS DESIGNED TO Living Benefit Programs The Protected Principal You can elect an If you have elected the remains in effect, your Account ValueEnhanced will Protected be Principal no Value. less than the enhanced guarantee more than once; however,subsequent a election supersedes the prior electionan of enhanced guarantee. Election of anguarantee enhanced does not impact the baseaddition, guarantee. you In may elect an “autowill step-up” automatically feature create that an enhanced guaranteeincrease (or your enhanced guarantee, if previously elected) on each anniversary of thecreate program a (and new maturity period forguarantee) the if new the enhanced Account Value asexceeds of the that Protected anniversary Principal Value orProtected Enhanced Principal Value by 7% orelect more. to You terminate may an also enhanced guarantee.to If terminate you the elect enhanced guarantee, theguarantee base will remain in effect. enhanced guarantee, on the guarantee’s maturityeach date anniversary and of on the maturity dateenhanced thereafter guarantee that amount the remains in effect,Account if Value your is below the EnhancedValue, Protected American Principal Skandia will apply additionalyour amounts Annuity to from its general accountAccount to Value increase to your be equal toPrincipal the Value. Enhanced Protected Any amounts added to your Annuity to support our guarantees under the program will befirst applied and to then any to Fixed the Allocations Sub-accountsrecent pro-rata, allocation based instructions on in your accordance most withmechanism the we allocation use under the program.amounts We added will to notify your you Annuity of under any tions the are program. correct If and our the assump- operationsof relating the to program the work administration properly, weto do add not additional expect amounts that to we your willValue Annuity. need is referred to as theProtected “Base Principal Guarantee” Value and is the referred Enhanced totee” as in the the “Step-up rider Guaran- we issue for this benefit. Withdrawals under your Annuity Withdrawals from your Annuity, while thewill program reduce is the in base effect, guarantee underenhanced the guarantee. program Cumulative as annual well withdrawals as up any the to Protected 5% Principal of Value as ofprogram the (adjusted effective for date any of subsequent the Purchasewith Payments respect and, to XT6, any CreditsPayments) applied will to reduce such the Purchase applicable guaranteed amount by the continued On any anniversary following Under the base guarantee, American Base Guarantee: Skandia guarantees that on the maturityanniversary date of and the on maturity each date thereafterremains that in the effect, program your Account ValueProtected will Principal be Value. no On less the than maturity the anniversary date after and the on maturity each date thatin the effect, program if remains your Account ValuePrincipal is Value, below American the Skandia Protected will applyamounts additional to your Annuity from itsyour general Account account Value to to increase be equalValue. to the Protected Principal Enhanced Guarantee: commencement of the program, you canenhanced establish guaranteed an amount based on yourValue. current Under Account the enhanced guarantee, Americanguarantees Skandia that at the end ofelection a of specified the period enhanced following guarantee the (also“maturity referred date”), to and as on its each anniversarydate of thereafter the that maturity the enhanced guaranteed amount The program monitors your Account Value daily and, if The guarantees provided by the program exist only on the The Guaranteed Return Option Plus offersas a the base option guarantee of as electing well an enhanced guarantee• at a later date. • Value will not be less thandate your of Account your Value election on of the the effective enhanced guarantee. necessary, systematically transfers amounts between the Sub-accounts you choose and Fixed Allocationsthe used Protected to Principal support Value(s). The programif may you be wish appropriate to protect aturns principal as amount of against a market specific down- datethe in Sub-accounts the to future, participate but in also market wishan performance. to additional There invest charge is in if you electPlus the program. Guaranteed Return Option applicable maturity date(s) and on eachmaturity anniversary date(s) of thereafter. the However, due tomonitoring the of ongoing your Account Value andValue the between transfer the of Sub-accounts Account and thesupport Fixed our Allocations future to guarantees, the programprotection may from provide significant some market losses ifsurrender you your choose Annuity to or begin receivingto annuity a payments maturity prior date. For thisyour same ability reason, to the benefit program from may market limit increases while itKEY is FEATURE in — effect. Protected Principal Value/Enhanced Protected Principal Value Living Benefit Programs

AMERICAN SKANDIA ANNUITIES PROSPECTUS 60 AMERICAN SKANDIA ANNUITIES PROSPECTUS 61 × your Account Value in the The resulting base guarantee amount is: $237,500 ($10,000 – $2,500, or $7,500). ($180,000 – $2,500, or $177,500). (1 – $7,500 / $177,500), or $227,464.79. If your Account Value is greaterreallocation than trigger, or equal to the Sub-accounts will remain allocated according torecent your instructions. most If a portion ofpreviously Account allocated Value to was a Fixed Allocationapplicable to guaranteed support amount, the all or aamounts portion may of be those transferred from there-allocated Fixed to Allocation the and Sub-accounts pro-rata accordingmost to recent your allocation instructions (including theallocations model under any asset allocation program you may have where: • A is the amount withdrawn less the Remaining• Limit B is the Account Value less the Remaining Limit first Annuity Year. withdrawn (i.e., reduced by $10,000, from$217,464.79). $227,464.79 to Year is also reduced by theto amount $2,500). withdrawn (from $12,500 Account Value is transferred to and maintainedto in the Fixed extent Allocations we, in our solesupport discretion, our deem guarantee(s) it under is the necessary program. to Wetions monitor in fluctua- your Account Value each Valuationprevailing Day, interest as rates well on as Fixed the Allocations, theduration(s) remaining until the applicable maturity date(s) andAccount the Value amount allocated of to Fixed Allocation(s) relative“reallocation to trigger”, a which determines whether Account Value must be transferred to or from Fixednotified Allocation(s). when While your you Account are Value not reaches awill reallocation receive trigger, a you confirmation statement indicating theportion transfer of of your a Account Value either to or from Fixed• Allocation(s). • The result is then further reduced by the ratio of A to B, • The Remaining Limit is set to zero (0) for the balanceExample of 3. the Reset of theA Dollar-for-dollar $10,000 withdrawal Limit is made onAnnuity December Year). 19, The 2005 Remaining (second Limit hasdollar-for-dollar been limit reset of to $12,500. the As thethan amount the withdrawn dollar-for-dollar is limit: less • The base guarantee amount is reduced by the amount • The Remaining Limit for the balance of the second Annuity KEY FEATURE — Allocation of Account Value Optional Life Insurance Rider subject to all other provisions of ™ ther than Systematic Withdrawals program are October 13, 2004; 2.) an initial SM

Limit (from $240,000 to $237,500); the balance of the first Annuityamount Year withdrawn is (from also $12,500 reduced to by $2,500). the withdrawn (i.e., by $10,000, from $250,000 to $240,000). The following examples of dollar-for-dollar and proportional Charges for other optional benefits under your Annuity that

• the base guarantee amount is first reduced by the Remaining exceeds the Remaining Limit of $2,500 from Example 1: before the withdrawal is $180,000. As the amount withdrawn within the first Annuity Year). The Account Value immediately A second $10,000 withdrawal is taken on December 18, 2004 (still reductions Example 2. Dollar-for-dollar and proportional

• The remaining dollar-for-dollar limit (“Remaining Limit”) for • The base guarantee amount is reduced by the amount amount withdrawn is less than the Dollar-for-dollar Limit: Annuity Year). No prior withdrawals have been taken. As the A $10,000 withdrawal is taken on November 29, 2004 (in the first Example 1. Dollar-for-dollar reduction GRO Plus or other fees and charges. forth here are purely hypothetical and do not reflect the charge for dollar-for-dollar limit of $12,500 (5% of $250,000). The values set Market Value Adjustment that would apply. 3.) a base guarantee amount of $250,000; and 4.) a your Annuity, including any Contingent Deferred Sales Charge and Purchase Payment of $250,000 (includes any Credits under XT6); of the GRO Plus Sub-accounts. Withdrawals will be reductions assume that: 1.) the Issue Date and the effective date the Fixed Allocations and thereafter pro-rata solely from the payment of charges for the Plus40 Sub-accounts and any Fixed Allocations up to growth attributable to Option Plus program, however, any partial withdrawals in the applicable guaranteed amount. tions. Systematic Withdrawals will be taken pro-rata from the applicable guaranteed amount under the Guaranteed Return advisory service will be treated as withdrawals and will reduce will be taken pro-rata from the Sub-accounts and any Fixed Alloca- are deducted as an annual charge in arrears will not reduce the (not currently offered for sale) and any third party investment

calculation below). Withdrawals o as described in the rider for this benefit (see the examples of this and the enhanced guarantee proportionally, according to the formula in excess of the dollar-for-dollar limit will reduce the base guarantee will be treated as described above, and the portion of the withdrawal limit, the portion of the withdrawal equal to the dollar-for-dollar limit limit”). If the amount withdrawn is greater than the dollar-for-dollar actual amount of the withdrawal (referred to as the “dollar-for-dollar Separate Fixed Allocations may be established in support of American Skandia uses an allocation mechanism based on the Protected Principal Value and thePrincipal Enhanced Value Protected (if elected). There maywhen also a be Fixed circumstances Allocation will beProtected established Principal only Value in or support the of Enhanced the Value. Protected If Principal you elect an enhancedportion guarantee, of it your is Account more Value likely may thattions be a and allocated will to remain Fixed allocated Alloca- forsupport a the longer Enhanced period Protected of Principal time Value, to period even of during positive a market performance and/orstances under where circum- Fixed Allocations would notsupport be the necessary Protected to Principal Value. Further,circumstances there where may Fixed be Allocations in supportPrincipal of Value the or Protected Enhanced Protected Principalferred Value to are the trans- Sub-accounts differently thanthe each different other guarantees because they of support. assumptions of expected and maximum marketrates volatility, and interest time left to thethe maturity reallocation of trigger. the The program allocation to mechanism determine determine is the used allocation to of Account Valuetions between and Fixed the Alloca- Sub-accounts you choose.reserves American the Skandia right to change thereallocation allocation trigger mechanism at and its the discretion, subjectwhere to required. regulatory Changes approval to the allocationreallocation mechanism trigger and/or may the be applied toallowed existing by programs law. where Election of the Program The Guaranteed Return Option Plus programtime can that be you elected purchase at your the Annuity,thereafter or (prior on to any annuitization). Valuation If Day youthe elect Issue the Date program of after your Annuity,the the Valuation program Day will that be we effective receive asgood the of order required at documentation our in home office,based and on the your guaranteed Account amount Value will as be elected of the that Guaranteed date. Return If Option you program previously the and Guaranteed wish Return to Option elect Plus program,teed your Return prior Option Guaran- program will beGuaranteed terminated. Return Termination Option of for the the purposeteed of Return electing Option the Plus Guaran- will beof treated the as Guaranteed any Return other Option termination (seetermination below), of including any the guaranteed amount, andapplicable application Market of Value any Adjustment when amountsferred are to trans- the Sub-accounts as a result of the termination. The continued a portion of your Account Value in the Sub-accounts elected). A Market Value Adjustment willreallocate apply Account when Value we from a FixedSub-accounts, Allocation which to may the result in ayour decrease Account or Value. increase in If your Account Value is lesstrigger, than the reallocation will be transferred from the Sub-accountsto pro-rata your according allocations to a newapplicable Fixed guaranteed Allocation(s) amount. to The support new the Fixedwill Allocation(s) have a Guarantee Period equaluntil to the the applicable time maturity remaining date(s). Theallocated Account to Value the new Fixed Allocation(s)the will fixed be interest credited rate(s) with then beingAllocation(s) credited maturing to on a the new applicable Fixed maturity(rounded date(s) to the next highest yearlyValue duration). will The remain Account invested in eachuntil applicable the Fixed applicable Allocation maturity date unless,your at Account an Value earlier is date, greater thantion or trigger equal and, to therefore, the amounts realloca- canSub-accounts be while transferred maintaining to the the guaranteed protection under the program (as described above). If a significant amount of youratically Account transferred Value to is Fixed system- Allocations toProtected support Principal the Value and/or the Enhanced Protected Principal Value during periods ofdeclines, market low interest rates, and/or asnears the its program maturity date, less ofbe your available Account to Value participate may in theof investment the experience Sub-accounts if there isrecovery. a During subsequent periods market closer to thethe maturity base date guarantee of or any enhancedanniversary guarantee, of or such any maturity date(s), aportion significant of your Account Value mayAllocations be to allocated support to any Fixed applicable guaranteed amount(s). If your Account Value iscation less trigger than and the new reallo- Fixed Allocationsestablished must during be periods where the interestbeing rate(s) credited to such Fixed Allocationsportion is of low, your a Account larger Value mayferred need to to Fixed be Allocations trans- to supportguaranteed the amount(s), applicable causing less of yourValue Account to be available to participateexperience in of the the investment Sub-accounts. • Living Benefit Programs

AMERICAN SKANDIA ANNUITIES PROSPECTUS 62 AMERICAN SKANDIA ANNUITIES PROSPECTUS 63 Account Value to Fixed Allocations asthe of program the under effective some date circumstances. of (including any Credits applied to suchunder Purchase XT6) Payments or transfer Account ValueAllocation to while or participating from in a the Fixed program;a however, portion all of or any Purchase Paymentsapplied (including to any such Credits Purchase Payments undercated XT6) by may us be to allo- Fixed Allocationsguaranteed. to You support cannot the participate amount in anyaveraging dollar program cost that transfers Account ValueAllocation from to a a Fixed Sub-account. allocation mechanism under the program willthe be Market subject Value to Adjustment formula underhowever, an the Annuity; 0.10% liquidity factor inapply. the A formula Market will Value not Adjustment maynegative. be Transfer either amounts positive will or be takenrecently from established the Fixed most Allocation. Fixed Allocations to the Sub-accounts undernot the count program toward will the maximum numberallowable of under free an transfers Annuity. Skandia on the maturity date ormaturity any date anniversary will of not the be treatedcontract” as for “investment income in tax the purposes. even when the current Account Value exceeds the guarantee. gradually decreases the program will becomesensitive increasingly to moves to Fixed Allocations. cate Account Value if you participatereserve in the this right program. to We transfer anyinvestment Account option Value to in an a eligible prohibited investmentwe option. prohibit Should access to any investmentrequired option, to any move transfers Account Value tooptions eligible will investment not be counted intransfers determining during the an number Annuity of Year. free Weyou may allocate also your require Account that Value accordingtion to model. an asset alloca- • You cannot allocate any portion of Purchase Payments • Transfers from Fixed Allocations made as a result of the • Transfers from the Sub-accounts to Fixed Allocations or from • Any amounts applied to your Account Value by American • Low interest rates may require allocation to Fixed• Allocations As the time remaining until the applicable maturity date • We currently limit the Sub-accounts in which you may allo- Charges under the Program We deduct a charge equal toassets 0.25% of of the the Sub-accounts average for daily participation net in the Guaranteed based on the current Account Value.

must be allocated to the Sub-accounts.may No be Fixed in Allocations effect as ofthe the program. date However, that the you reallocation elect trigger to may participate transfer in The charge for the Guaranteed Return Option Plus program The program will terminate automatically upon: (a) the death

• Upon inception of the program, 100% of your Account Value but not limited to the following: This program is subject to certain rules and restrictions, including, Option Plus Special Considerations under the Guaranteed Return nation of the program. Principal Value. will no longer be deducted from your Account Value upon termi- Account Value on that Valuation Day will be the Protected required documentation in good order at our home office, and the election will be effective on the Valuation Day that we receive the after the death of the Annuity Owner. The surviving spouse’s benefit at any time, subject to the limitations described above, provide any guarantees. The surviving spouse may elect the the program, the Guaranteed Return Option Plus will no longer or (c) upon full surrender of the Annuity. If you elect to terminate of the date Account Value is applied to begin annuity payments; of the Owner or the Annuitant (in an entity owned contract); (b) as allocation program. A Market Value Adjustment will apply. in such Sub-accounts, or in accordance with any effective asset ferred to the Sub-accounts pro-rata based on the Account Values nation, any Account Value in the Fixed Allocations will be trans- day on which a program termination was effected. Upon termi- program reinstatement cannot be effected on the same business issue date and any election made by a surviving spouse) and (B) a elections (including any election made effective on the Annuity any Annuity Year, we do not permit more than two program ability to reinstate the program is limited by the following: (A) in higher base guarantee (and a new maturity date). However, your Valuation Day and two weeks later reinstate the program with a market, you could, for example, terminate the program on a given that date) by furnishing the documentation we require. In a rising participate in the program again (based on the Account Value on you terminate the program entirely, you can subsequently elect to terminate the Guaranteed Return Option Plus program entirely. If the protection provided by the base guarantee. You also can You can elect to terminate the enhanced guarantee but maintain Termination of the Program

your Annuity Guaranteed Return Option Plus program will then be added to The Protected Principal your Account Value in the Any amounts added to your Annuity to support our guarantee If your Account Value is greaterreallocation than trigger, or equal to the Sub-accounts will remain allocated according torecent your instructions. most If a portion ofpreviously Account allocated Value to was the Fixed Allocationguaranteed to amount, support all the or a portion of those amounts may guarantee, the program may provide somecant protection market from losses signifi- if you choosebegin to receiving surrender annuity your payments Annuity prior or tosame a reason, maturity the date. program For may this limitmarket your increases ability while to it benefit is from in effect. KEY FEATURE — Protected PrincipalUnder Value the GRO option, Americanmaturity Skandia date, guarantees that your onProtected the Principal Account Value. Value OnValue will the is maturity below be the datewill no Protected if apply Principal your less additional Value, Account thanaccount amounts American Skandia to the to your increaseProtected Annuity Principal your Value. from its Account general Value to beunder the program equal will be to appliedthen to to the the the Fixed Sub-accounts Allocation pro first rata, and allocation based instructions on in your accordance most with recent thenism allocation we mecha- use under the program.amounts We added will to notify your you Annuity of under any tions the are program. correct If and our the assump- operationsof relating the to program the work administration properly, weto do add not additional expect amounts that to we an willValue Annuity. need is generally referred to asrider the we “Guaranteed issue Amount” for in this the benefit. KEY FEATURE — Allocation ofAccount Account Value Value is transferred to andtion maintained to in the a extent Fixed we, Alloca- into our support sole our discretion, guarantee deem under it the istions program. necessary in We your monitor Account fluctua- Value eachprevailing Valuation interest Day, rate as on well the as Fixed the duration Allocation, until the the remaining applicable maturity dateAccount and Value the allocated amount to of the Fixed“reallocation Allocation trigger”, relative which to determines a whether Accountmust Value be transferred to or fromnot the notified Fixed when Allocation. your While Account you Value are trigger, reaches you a will reallocation receive a confirmationtransfer statement of indicating a the portion of yourFixed Account Allocation. Value either to or from the • continued The guarantee provided by the program exists only on the The program monitors your Account Value daily and, if neces- We offer a program that, after a seven-year period following The Guaranteed Return Option described belowoffered is only in those jurisdictions whereyet we received have regulatory not approval for theReturn Guaranteed Option Plus as of theoption date is the made. election Certain of terms the andbetween conditions jurisdictions. may The differ program can benew elected purchasers by on the Issue Datecan of be their elected Annuity, by and existing Annuityanniversary Owners of on the either Issue the Date ofdate their other Annuity than or that on anniversary, a asunder described “Election below of the Program”. TheOption Guaranteed is Return not available if youthe elect Guaranteed the Minimum GRO Withdrawal Plus Benefit rider, rider,Guaranteed the Minimum Income Benefit rider, theFive Lifetime Income Benefit rider, the SpousalIncome Lifetime Benefit Five rider, the Highest DailyBenefit, Value or Death the Dollar Cost Averaginginvolves program transfers if out it of the Fixed Allocations. applicable maturity date. However, due toof the your ongoing Account monitoring Value and thethe transfer Sub-accounts of and Account the Value Fixed between Allocation to support our future commencement of the program (we referas to the the “maturity end date”) of guarantees that your period less Account than Value your will Account not Value be onprogram the (called effective the date “Protected of Principal your Value”). Return Option Plus program. The annualAccount charge Value is allocated deducted to daily. Fixed Allocationsnot under subject the to program the is charge. TheAmerican charge Skandia is for: deducted (a) to the compensate riskmaturity that date your is Account less Value than on the the (b) amount administration guaranteed; of and the program. GUARANTEED RETURN OPTION (GRO) Living Benefit Programs sary, systematically transfers amounts between the Sub-accounts you choose and the Fixed Allocation usedPrincipal to Value. support The the program Protected may be appropriateprotect if a you principal wish amount to against market downturnsdate as in of the a future, specific but also wishparticipate to in invest market in performance. the There Sub-accounts is to anyou additional elect charge the if Guaranteed Return Option program.

AMERICAN SKANDIA ANNUITIES PROSPECTUS 64 AMERICAN SKANDIA ANNUITIES PROSPECTUS 65 As part of terminating the existing Program, we transfer any American Skandia uses an allocation mechanism based on The Annuity Owner also can terminate theprogram. Guaranteed Upon Return termination, Option any Account Value inwill the be Fixed transferred Allocation to the Sub-accounts pro-rataValues based in on such the Sub-accounts, Account or in accordanceallocation with program. any A effective Market asset Value Adjustment will apply. Once each Annuity Year you maySuch request a to request restart is the an Program. electionProgram by and you start to a terminate new the one. existing ries Restarts of only the take Issue effect Date. on To anniversa- notify make us. such If a we request accept for your aProgram request, restart, as we you of then must that terminate valuation the period, existing Date, if or, it is if an not, anniversary as of ofThe the the new Issue next Program following starts anniversary at of that theValue time. Issue for The Date. the initial new Protected Program Principal isdate the of Account the Value new as Program. of Unless theof you effective the tell new us Program otherwise, will the be duration However, the if same we as do that not for then theelect make existing from that Program. those duration we available, make you available must at that time. amounts in Fixed Allocations, subject toment, a to Market the Value Sub-accounts Adjust- on aAccount pro-rata Value basis. was If then your in entire Fixedprovide Allocations, us you instructions must as first to howAccount to Value allocate among the the transferred Sub-accounts. Termination of the Program Election of the Program The Guaranteed Return Option can bepurchase elected your at Annuity, the or time on that any you to Valuation annuitization). Day If thereafter you (prior elect theyour program Annuity, after the the program Issue will Date be of Day effective that as we of receive the the Valuation requiredour documentation home in office, good and order the at Protectedon Principal your Value Account will Value be as based of that date. Restart of the Program assumptions of expected and maximum marketrates volatility, and interest time left to thereallocation maturity trigger. of The the allocation program mechanism to is determinethe used the allocation to of determine Account Value betweenthe the Sub-accounts Fixed you Allocation choose. and American Skandiato reserves change the the right allocation mechanism andits the discretion, reallocation subject trigger to at regulatory approvalChanges where to required. the allocation mechanism and/ortrigger the may reallocation be applied to existing programs where allowed by law. a portion of your Account Value in the Sub-accounts

will be transferred from your Sub-accountsto pro-rata your according allocations to a newguaranteed Fixed amount. Allocation The to new support Fixed the AllocationGuarantee will Period have equal a to the timecable remaining maturity until date. the The appli- Account ValueFixed allocated Allocation to will the be new credited withthen the being fixed credited interest to rate a newapplicable Fixed maturity Allocation date maturing (rounded on to the theduration). next The highest Account yearly Value will remainAllocation invested until in the the maturity Fixed date unless,your at Account an Value earlier is date, greater thantrigger or and, equal therefore, to amounts the can reallocation beSub-accounts transferred while to maintaining the the guaranteed protection under the program (as described above). If your Account Value is lesstrigger, than the reallocation be transferred from the Fixed Allocationthe and Sub-accounts re-allocated pro-rata to according to yourallocation most instructions recent (including the model allocationsany under asset allocation program you mayMarket have Value elected). Adjustment A will apply whenAccount we Value reallocate from the Fixed Allocationwhich to may the result Sub-accounts, in a decreaseValue. or increase in your Account If a significant amount of youratically Account transferred Value to is the system- Fixed Allocationthe to Protected support Principal Value during periodsdeclines, of low market interest rates, and/or asnears the its program maturity date, less ofbe your available Account to Value participate may in theof investment the experience Sub-accounts if there isrecovery. a During subsequent periods market closer to thethe maturity guarantee date a of significant portion ofValue your may Account be allocated to thesupport Fixed any Allocation applicable to guaranteed amount. IfAccount your Value is less than thea reallocation new trigger Fixed and Allocation must beperiods established where during the interest rate beingFixed credited Allocation to is such low, a largerValue portion may of need your to Account be transferredto to support the the Fixed guaranteed Allocation amount, causingAccount less Value of to your be available toinvestment participate experience in of the the Sub-accounts. • Account Value if you participate inthe this right program. to We transfer reserve any Accountment Value option in to a an prohibited eligible invest- investmentprohibit option. access Should to we any investment option,required any to transfers move Account Value towill eligible not investment be options counted in determiningduring the an number Annuity of Year. free We transfers mayyour also Account require Value that according you to allocate an asset allocation model. even when the current Account Value exceeds the guarantee. Skandia on the maturity date ormaturity any date anniversary will of not the be treatedcontract” as for “investment income in tax the purposes. gradually decreases the program will becomesensitive increasingly to moves to the Fixed Allocation. With respect to XT6 and APEXAmerican II, Skandia effective changed November the 18, manner 2002, incharge which for the the annual Guaranteed Return Optionmethod is described deducted above. to The the annual chargeteed for Return the Option Guaran- for Owners whobetween elected February the 4, benefit 2002 and NovemberAPEX 15, II 2002 and for subsequent XT6 to and Novemberwhere 15, the 2002 daily in deduction those of states theapproved, charge is has deducted not annually, been in arrears,prospectus according in to effect the as of theOwners date who the terminate program and was then elected. re-electReturn the Option Guaranteed or elect to restartat the any Guaranteed time Return after Option November 15,charge 2002 method will described be above. subject to the Charges under the Program We deduct a charge equal toassets 0.25% of of the the Sub-accounts average for daily participation net Return in Option the program. Guaranteed The annual chargeAccount is Value deducted allocated daily. to the Fixedis Allocation not under subject the to program the charge.sate The American charge Skandia is for: deducted (a) to the compen- the risk maturity that date your is Account less Value than on (b) the administration amount of guaranteed; the and program. • Any amounts applied to your Account Value by American • Low interest rates may require allocation to the• Fixed Allocation As the time remaining until the applicable maturity date • We currently limit the Sub-accounts in which you may allocate continued (including any Credits applied to such PurchaseXT6) Payments or under transfer Account Value to orwhile from participating the in Fixed the Allocation program; however, allPurchase or Payments a (including portion any of Credits any applied toPurchase such Payments under XT6) may be allocatedAllocation by to us support to the the amount Fixed guaranteed. Youipate cannot in partic- any dollar cost averaging programValue that from transfers a Account Fixed Allocation to a Sub-account. allocation mechanism under the program willthe be Market subject Value to Adjustment formula underhowever, an the Annuity; 0.10% liquidity factor inapply. the A formula Market will Value not Adjustment maynegative. be Transfer either amounts positive will or be takenrecently from established the Fixed most Allocation. from the Fixed Allocation to theprogram Sub-accounts will under not the count toward thetransfers maximum allowable number under of an free Annuity. The charge for the Guaranteed Return Option program will no must be allocated to the Sub-accounts.may The not Fixed be Allocation in effect asipate of in the the date program. that However, you the electtransfer reallocation to Account trigger partic- Value may to the Fixedeffective Allocation date as of of the the program under some circumstances. The program will terminate automatically upon: (a) the death of • Transfers from the Fixed Allocation made as a result of the • Transfers from the Sub-accounts to the Fixed Allocation or • Annuity Owners cannot allocate any portion of Purchase Payments longer be deducted from your Accountthe Value program. upon termination of Special Considerations under the GuaranteedOption Return This program is subject to certainbut rules not and limited restrictions, to including, the following: • Upon inception of the program, 100% of your Account Value Living Benefit Programs the Owner or the Annuitant (indate an Account entity Value owned is contract); applied (b) to asfull begin of surrender annuity the of payments; your or Annuity. (c) If upon the you Guaranteed elect Return to Option terminate will the program, noIf longer the provide surviving any spouse guarantees. assumes yourthe Annuity, benefit he/ on she any may anniversary re-elect ofthe the deceased Issue Owner Date had of not the previously Annuityelect elected or, the the if benefit benefit, at may any time.effective The on surviving the spouse’s election Valuation will Day that be documentation we in receive good the order required at ourValue home on office, that and Valuation the Day Account will be the Protected Principal Value.

AMERICAN SKANDIA ANNUITIES PROSPECTUS 66 AMERICAN SKANDIA ANNUITIES PROSPECTUS 67 We offer a program that guarantees your ability to withdraw The Guaranteed Minimum Withdrawal Benefit program described below is only being offereddictions in where those we juris- have received regulatoryand approval will be offered subsequently inwhen other we jurisdictions receive regulatory approval indictions. those Certain juris- terms and conditions maybetween differ jurisdictions once approved. Currently, the program can only be elected byIssue new Date purchasers of on their the Annuity. Weexisting may Annuity offer Owners the in program the to future,eligibility subject rules to and our restrictions. The Guaranteed Minimum Withdrawal Benefit program is notif available you elect the Guaranteed ReturnReturn Option, Option Guaranteed Plus, the Guaranteed MinimumBenefit, Income the Lifetime Five Income BenefitLifetime or Five the Income Spousal Benefit. amounts equal to an initial principalValue”), value regardless (called of the the “Protected impact ofAccount market Value, performance subject on to your our programand rules amount regarding of the withdrawals. timing The programyou may intend be to appropriate make if periodic withdrawalswish from to your ensure Annuity that and market performanceability will to not protect affect your your principal. Youwithdrawals are as not part required of to the make programyou — withdraw the less guarantee than is the not maximum lostprincipal allowable if each amount year of under the rulesadditional of charge the if program. you There elect is the an charge GMWB may program; be however, waived the under certainbelow. circumstances described KEY FEATURE — Protected Value The Protected Value is the totalavailable amount to that you we through guarantee withdrawals will from be benefit your payments, Annuity regardless and/or of the impacton of your market Account performance Value. The Protectedwithdrawal Value you is make reduced until with the each ProtectedWhen Value the is Protected reduced Value to is zero. reduceddrawals, to the zero GMWB due program to terminates. your Additionally, with- Protected the Value is used to determineamount the that maximum you annual can withdraw fromProtected your Annual Annuity, Withdrawal called Amount, the without triggering an GUARANTEED MINIMUM WITHDRAWAL BENEFIT (GMWB) the entire period that the programincluding remains any in extension effect, of the program’sresulting maturity from date the Owner’s election toprogram restart duration, the regardless 7-year of when theparticipate Owner in elects the to Guaranteed Return OptionGRO program Plus (or if we are no longer offering GRO). OR terminate the program before thedate, program’s will maturity not be charged theipating 0.25% in annual the fee program for if partic- theyReturn re-elect Option the program Guaranteed (or GRO Plusoffering if GRO) we at are a no later longer date. Guaranteed Return Option program (or GROno Plus longer if offering we GRO) are apply tothe Owners waiver who of qualify the for 0.25% annual fee. the Promotional Period do not qualifyfee for waiver. the 0.25% annual Owners who purchased an ASAP III2003 Annuity and between September April 30, 1, 2003 orFebruary an 4, ASL 2002 II and Annuity November between 15,Period”) 2002 will (the not “Promotional be charged theGuaranteed 0.25% Return annual Option fee program for (or the GROlonger Plus offering if GRO) we if are elected no atis any in time effect. while their Annuity • American Skandia will not charge the 0.25% annual fee for • Owners who complete the initial 7-year program duration • All other terms and conditions of your Annuity and the • Owners who purchase an Annuity after the completion of You are not required to withdraw all or The Protected Annual Withdrawal Amount is referred to The GMWB program does not affect your ability to Protected Annual Withdrawal Amount in anyyou Annuity cannot Year, carry-over the unused portionAnnual of Withdrawal the Amount Protected to subsequent AnnuityHowever, Years. because the Protected Value isactual only amount reduced of by withdrawals the you makestances, under any these unused circum- Protected Annual Withdrawalmay Amount extend the period of timeValue until is the reduced remaining to Protected zero. Annual Withdrawal Amount by 7% ofPayment the (and applicable any Purchase Credits we applyPayments to under such XT6). Purchase to $60,000. On the date youValue, are your eligible Account to Value step-up is the equal Protected step-up to the $75,000. Protected You Value could to elect $75,000 to ble. on Upon the election date of you the are step-up, eligi- Annual we Withdrawal also Amount reset (discussed the immediately Protected below)equal to to be the greater of (A)Amount the immediately Protected prior Annual to Withdrawal the reset;Protected and Value (B) immediately 7% after of the the reset. KEY FEATURE — Protected AnnualAmount Withdrawal The initial Protected Annual Withdrawal Amountthe is Protected equal Value. to Under 7% the of GMWBlative program, withdrawals if each your Annuity cumu- Year areProtected less Annual than Withdrawal or Amount, equal your to Protected the be Value reduced will on a “dollar-for-dollar” basisreduced (the by Protected the Value actual is amount ofCDSC the or withdrawal, MVA including that any may apply).Annuity Cumulative Year withdrawals that in exceed any the ProtectedAmount Annual trigger Withdrawal a proportional adjustment toValue both and the the Protected Protected Annual Withdrawalin Amount, the as rider described for this benefitbelow). (see the examples of this calculation as the “Maximum Annual Benefit” inbenefit. the rider we issue for this make withdrawals under your Annuity orto limit request your withdrawals ability that exceed theWithdrawal Protected Amount. Annual any portion of the Protected AnnualAnnuity Withdrawal Year. Amount each • If, cumulatively, you withdraw an amount less than the • Additional Purchase Payments will increase the Protected continued The Annuity anniversary th Annuity anniversary following the first th , the Account Value on the anniversary of the Issue Upon election of the step-up, we reset the Protected Value to The Protected Value is determined as of the date you make your Annuity, the Account Value willPayment be (plus your any initial Credits Purchase applied tounder such XT6). Purchase Payments If we offer the GMWB programOwners to existing Annuity Date of your Annuity following yourprogram election will of be the used GMWB to determine the initial Protected Value. withdrawal, the Protected Value will beamount increased of by the the additional Purchase Paymentapplied (plus to any such Credits Purchase Payments underYou XT6). may elect to step-up your Protected Value if, due to following the preceding step-up. If youProtected elect Value, to you step-up must the do soyour during eligibility the date. 30-day If period you prior elect to under to the step-up program, the and Protected on Value thecharges date under you the elect GMWB to program step-up, have the purchasers, changed your for program new may be subjectforward. to the new charge going be equal to the then currentyour Account initial Value. Protected For Value example, was assume $100,000cumulative and withdrawals you of have $40,000, made reducing the Protected Value withdrawal under the GMWB program. Thebe Protected stepped Value up can again on or after the 5 adjustment in the Protected Value onProtected a Value proportional is basis. referred to aswe the issue “Benefit for Base” this in benefit. the rider your first withdrawal under your Annuityof following the your GMWB election program. The initialthe Protected greater Value of is (A) equal the to AccountGMWB Value program, on plus the any date additional you Purchase electany Payments the Credits (plus applied to such Purchasebefore Payments the under date XT6) of your firstValue withdrawal; as or of (B) the the date Account ofThe the Protected first Value withdrawal may from be your enhanced Annuity. Account by Value increases due in to your market performancebetween during your the election period of the GMWByour program first and withdrawal. the date of • If you elect the GMWB program at the time you purchase • • If you make additional Purchase Payments after your first positive market performance, your Account Valuethe is Protected greater Value. than You are eligibleValue to on step-up or the after Protected the 5 Living Benefit Programs

AMERICAN SKANDIA ANNUITIES PROSPECTUS 68 AMERICAN SKANDIA ANNUITIES PROSPECTUS 69 The Protected Value is not before you have received all ofform your of Protected withdrawals Value from in your the Annuity,the your option Beneficiary to has elect to receiveas the an remaining alternate Protected death Value benefit payoutpayable in under lieu any of other the death amount benefitAnnuity. provided The under remaining your Protected Value willform be of payable fixed, in periodic the payments. Yourthe beneficiary frequency can of elect payments, subject toWe our will rules determine then the in duration effect. forwill which continue periodic by payments dividing the ProtectedAnnual Value Withdrawal by Amount. the Protected zero (0) for the balance of the first Annuity Year. (i.e., reduced by $10,000, from $229,764.71 to $219,764.71). balance of the second Annuity Yearamount is withdrawn also (from reduced $17,294.12 by to the $7,294.12). program, market performance may reduce yourValue. Account If your Account Value isnot equal received to all zero, of and your you Protected have withdrawals Value from in your the Annuity, form we of willpayments continue equal to to make the remaining Protectedof Value fixed, in periodic the payments form until theProtected remainder Value of is the paid, at whichThe time fixed, the periodic rider payments terminates. will eachProtected be Annual equal Withdrawal to Amount, the except forpayment the which last may be equal toValue. the We remaining will Protected determine the durationpayments for will which continue periodic by dividing thethe Protected Protected Value Annual by Withdrawal Amount. Youthe will right not to have make additional Purchasethe Payments remaining or Protected receive Value in athe lump frequency sum. of You payments, can subject elect toeffect. our rules then in • In addition to any withdrawals you make under the GMWB • If the death benefit under your Annuity becomes payable • The remaining Protected Annual Withdrawal Amount is set to Example 3. Reset of theA Maximum $10,000 withdrawal Annual is Benefit made onAnnuity October Year). 13, The 2006 remaining (second Protected AnnualAmount Withdrawal has been reset to theAmount Protected of Annual $17,294.12 Withdrawal from Example 2.is As less the than amount the withdrawn remaining Protected• Annual Withdrawal Amount: the Protected Value is reduced by the amount• withdrawn the remaining Protected Annual Withdrawal Amount for the BENEFITS UNDER THE GMWB PROGRAM (1 – $2,500 / × (1 – $2,500 / $212,500), or $17,294.12. ×

Annual Withdrawal Amount ($10,000 – $7,500,$2,500). or Annual Withdrawal Amount ($220,000 – $7,500,$212,500). or

the ratio of A to B:drawal The Amount resulting is: Protected Annual With- $17,500 Protected Annual Withdrawal Amount (from $240,000$232,500); to where: • A is the amount withdrawn less the remaining Protected • B is the Account Value less the remaining Protected The resulting Protected Value is: $232,500 balance of the first Annuity Yearamount is withdrawn also (from reduced $17,500 by to the $7,500). (i.e., by $10,000, from $250,000 to $240,000). ment exceeds the Protected Value, theWithdrawal Protected Amount Annual will be set equalThe to following the examples Protected of Value. dollar-for dollar and proportional

• the Protected Annual Withdrawal Amount is also reduced by • the Protected Value is first reduced by the remaining • The result is then further reduced by the ratio of A to B, $212,500), or $229,764.71. $7,500 from Example 1: exceeds the remaining Protected Annual Withdrawal Amount of before the withdrawal is $220,000. As the amount withdrawn within the first Annuity Year). The Account Value immediately A second $10,000 withdrawal is taken on December 13, 2005 (still reductions Example 2. Dollar-for-dollar and proportional • The remaining Protected Annual Withdrawal Amount for the • The Protected Value is reduced by the amount withdrawn Amount: amount withdrawn is less than the Protected Annual Withdrawal Annuity Year). No prior withdrawals have been taken. As the A $10,000 withdrawal is taken on November 13, 2005 (in the first Example 1. Dollar-for-dollar reduction or any other fees and charges. are purely hypothetical and do not reflect the charge for GMWB Amount of $17,500 (7% of $250,000). The values set forth here Value of $250,000; and 4.) a Protected Annual Withdrawal $250,000 (includes any Credits in the case of XT6); 3.) a Protected program are October 13, 2005; 2.) an initial Purchase Payment of that: 1.) the Issue Date and the effective date of the GMWB reductions and the reset of the Maximum Annual Benefit assume • If the Protected Annual Withdrawal Amount after an adjust- The charge for the GMWB program will no longer be deducted program, you do not make any withdrawals, and do not make reserve the right to transfer anyinvestment Account option Value to in an a eligible prohibited investmentwe option. prohibit Should access to any investmentrequired option, to any move transfers Account Value tooptions eligible will investment not be counted intransfers determining during the an number Annuity of Year. free Weyou may allocate also your require Account that Value accordingtion to model. an asset alloca- We reserve the right to restrict the maximum amount of Charges under the Program Currently, we deduct a charge equalnet to assets 0.35% of of the the Sub-accounts average per daily program. year The to annual purchase charge the is GMWB deductedallocated daily. to Account Fixed Value Allocations under thethe program charge. is not subject to • If, during the seven years following the effective date of the Election of the Program Currently, the GMWB program can onlythat be you elected purchase at your the Annuity. time Inexisting the Annuity future, Owners we the may option offer toafter elect the the Issue GMWB Date program of theirand Annuity, restrictions. subject If to you our elect eligibility the rules Date GMWB of program your after Annuity, the the Issue programanniversary will date. be Your effective Account as Value of as thewill of next be such used anniversary to date calculate theProtected initial Annual Protected Withdrawal Value Amount. and the initial Protected Value that may be coveredunder under this the Annuity GMWB or program any otherissued annuities by that American you Skandia own or that its are affiliated companies. Termination of the Program The program terminates automatically when yourreaches Protected zero Value based on your withdrawals.program You at may any terminate time the by notifyingany us. guarantee If provided you by terminate the the benefit program, date will the terminate termination as is of effective. the Theyour program surrender terminates of upon your Annuity, uponyour due surviving proof spouse of elects death to (unless continueGMWB your program Annuity or and your the Beneficiary electspayable to under receive the the GMWB amounts program inupon lieu your of election the to death begin benefit) receiving or annuity payments. from your Account Value upon termination of the program. continued You have received all of your Protected Valuedrawals in from the your form Annuity, of an with- additional annuityoption payment will be available that makes fixedcertain annuity period, payments determined for by a dividing the Protectedthe Value Protected by Annual Withdrawal Amount. If youreceive elect annuity to payments calculated in this manner,assumed the interest rate used to calculate such0%, payments which will is be less than the assumedannuity interest payment rate options on we other offer. This 0%rate assumed results interest in lower annuity payments thanbeen what paid would if have the assumed interest rate was higher than 0%. the terms and conditions of yourand Annuity, MVA including that any may CDSC apply. be treated, for tax purposes, inwithdrawals the under same your way Annuity. as any other Account Value or Surrender Value, butdecrease any the withdrawal Account will Value by theIf amount you of surrender the your withdrawal. Annuity, youSurrender will Value, receive not the the current Protected Value. Account Value is greater than zeroGMWB without program. purchasing The the GMWB program providesthat a if guarantee your Account Value declinesance, due you to will market be perform- able toform receive of your periodic Protected benefit Value payments. in the cate Account Value if you participate in this program. We equal to the Account Value forAnnuity’s purposes other of death the benefit options. Theprogram GMWB does not increase or decreaseotherwise the payable amount under the Annuity’s otherbenefit death options. Generally, the GMWB programbe would of value to your BeneficiaryProtected only Value when at the death exceeds anyavailable other as amount a death benefit. can also elect to terminate the GMWBreceiving program annuity and payments begin based on your thenAccount current Value (not the remaining Protected Value)any under of the available annuity payment options. Other Important Considerations • Withdrawals under the GMWB program are subject to all of • Withdrawals made while the GMWB program is in effect will • The GMWB program does not directly affect your Annuity’s • You can make withdrawals from your Annuity while your • We currently limit the Sub-accounts in which you may allo- • If you elect to begin receiving annuity payments before you Living Benefit Programs

AMERICAN SKANDIA ANNUITIES PROSPECTUS 70 AMERICAN SKANDIA ANNUITIES PROSPECTUS 71 The Protected Income Value is We offer a program that, after a seven-year waiting period, The Guaranteed Minimum Income Benefit program described below is only being offereddictions in where those we juris- have received regulatoryand approval, will be offered subsequently inwhen other we jurisdictions receive regulatory approval indictions. those Certain juris- terms and conditions maybetween differ jurisdictions once approved. Currently, the program can only be elected byIssue new Date purchasers of on their the Annuity. Weexisting may Annuity offer Owners the in program the to future,eligibility subject rules to and our restrictions. The Guaranteed Minimum Income Benefit program is notelect available any if other you optional living benefit. GUARANTEED MINIMUM INCOME BENEFIT (GMIB) guarantees your ability to begin receivingAnnuity income in from the your form of annuityminimum payments value based (called on the a “Protected guaranteed Incomeincreases Value”) after that the waiting period begins,impact regardless of of market the performance on yourprogram Account may Value. be The appropriate for youAnnuity if as you a anticipate future using source your ofthe periodic remainder fixed of income your payments life for andwhich wish your to income ensure payments that will the be basisleast calculated upon a will minimum achieve amount at despite fluctuationsance. in There market is perform- an additional charge if you electKEY the FEATURE GMIB — program. Protected IncomeThe Value Protected Income Value is theguarantee minimum will amount be that available we (net ofafter any a applicable waiting tax period charge), of atreceiving least fixed seven annuity years, payments. as The a Protected basisinitially Income to established Value begin on is the effective dateand of is the equal GMIB to program your Accountthe Value GMIB on program such may date. only Currently, be since is elected the at Issue issue, Date the of effective your date increased Annuity. daily The based Protected on Income an Value annual is the growth limitations rate described of below. 5%, subject to referred to as the “Protected Value”benefit. in The the 5% rider annual we growth issue rate forPercentage” is this in referred the to rider as we the issue “Roll-Up for this benefit. . For a Tax Sheltered Annuity or a 401(a) plan for 2 ⁄ 1

any additional Purchase Payments after afollowing five-year the period effective date of theremain program, in the effect; program however, will we willgoing waive forward. the If annual you charge make anfollowing additional the Purchase waiver Payment of the annualcharging charge, for we the will program. begin After yeareffective seven date (7) of following the the program, withdrawalscharge will to not be cause re-imposed. a and on the date you electprogram to have step-up, changed the for charges new under purchasers, the be your subject program to may the new charge level for the benefit.

distribution requirements. or excise taxes due to tax considerations such as minimum may be adjusted so that the payments do not trigger any penalty payments under the annuity payment and death benefit provisions in future Annuity Years. In addition, the amount and duration of Annual Withdrawal Amount, resulting in a lower amount payable cause us to recalculate the Protected Value and the Protected may exceed the Protected Annual Withdrawal Amount, which will during the owner’s lifetime. The amount required under the Code to retirement, if later. Roth IRAs are not subject to these rules employer, this required beginning date can generally be deferred which the participant is not a greater than 5 percent owner of the

after age 70 begin receiving periodic amounts from your Annuity beginning the minimum distribution rules under the Code require that you Annuity (or 403(b)) or employer plan under Code Section 401(a), fied” investments, including an IRA, SEP-IRA, Tax Sheltered If you purchase an Annuity as an investment vehicle for “quali- Contracts/Arrangements • If you elect to step-up the Protected Value under the program, Additional Tax Considerations for Qualified — You may elect to amount of the withdrawal. Cumulative withdrawalsAnnuity each Year in excess of 5%on of the the prior Protected anniversary Income of Value yourProtected Annuity Income will Value reduce proportionately. the All withdrawalsthe after Maximum Protected Income Value isthe reached Protected will Income reduce Value proportionately. Thegrowth 5% rate annual will be applied toValue the from reduced the Protected date Income of theStepping-Up withdrawal. the Protected Income Value effective date of your election toIncome step-up Value. the You Protected cannot exercise yourreceiving right annuity to payments begin under the GMIBend program of until the the new waiting period.upon In resets, light it of is this not waiting recommended period if that the you required reset beginning your date GMIB underrequirements IRS would minimum commence distribution during the 7period. year See waiting “Tax Considerations” section infor this additional prospectus information on IRS requirements. effective date of any step-up. TheIncome new Value Maximum will Protected be equal toProtected 200% Income of Value the as sum of of the the step-up effective plus date any of subsequent the Purchase PaymentsCredit (and that any is applied to suchof Purchase XT6), Payments minus in the the impact case ofof any the withdrawals step-up. after the date annuity payments under the GMIB program,such we rates will based apply on the numberrecent of step-up. years since the most program, and on the date youunder elect the to GMIB step-up, program the have charges changedyour for program new may purchasers, be subject toforward. the new charge going “step-up” or “reset” your Protected IncomeValue Value is if greater your than Account the currentexercise Protected of Income the Value. step-up Upon provision, yourValue initial will Protected be Income reset equal todate your that current you Account elect Value. to From step-up the apply the the Protected 5% Income annual Value, growth we rate will Income to Value, the as stepped-up described Protected above. Youprovision can twice exercise while the the step-up GMIB programwhile is the in Annuitant effect, is and less only than• age 76. A new seven-year waiting period will be established upon the • The Maximum Protected Income Value will be reset as of the • When determining the guaranteed annuity purchase rates for • If you elect to step-up the Protected Income Value under the continued th birthday or the 7 th anniversary of the later of theprogram effective or date the of effective the date GMIB ofHowever, the we most will recent increase step-up. the Protectedamount Income of Value any by additional the Purchase Paymentsthat (and is any applied Credit to such PurchaseFurther, Payments if in you the make case withdrawals of after XT6). the the maximum Annuitant age/duration reaches limits, we willProtected reduce Income the Value and the MaximumValue Protected by Income the proportional impact ofAccount the Value. withdrawal on your an additional Purchase Payment, we willProtected increase Income the Value by the amountPayment of (and the any Purchase Credit that isPayment applied in to the such case Purchase of XT6)growth and rate will on apply the the new 5% amount annual Payment from is the applied. date the Purchase lative withdrawals each Annuity Year thatthe are Protected up Income to Value 5% on of theAnnuity prior will anniversary reduce of the your Protected Income Value by the The Protected Income Value is subject to a limit of 200% immediately below, we will no longerIncome increase Value the by Protected the 5% annualthe growth Maximum rate Protected once Income you Value. reach However,increase we the will Protected Income Value byadditional the Purchase amount Payments of after any you reachProtected the Income Maximum Value. Further, if youafter make you withdrawals reach the Maximum Protectedwill Income reduce Value, the we Protected Income ValueProtected and Income the Value Maximum by the proportionalwithdrawal impact on of your the Account Value. longer increase the Protected Income Valuegrowth by rate the after 5% the annual later ofimmediately the following anniversary the date Annuitant’s on 80 or • Subject to the Maximum Protected Income Value, if you make • As described below, after the waiting period begins, cumu- (2X) of the sum of theeffective Protected date Income of Value the established GMIB on program, the step-up or value, the plus effective any date additional of Purchase any Credit Payments that (and is any applied to suchXT6) Purchase made Payments after in the the waiting case period of Income begins Value”), (“Maximum minus Protected the sum ofIncome any Value reductions due in to the withdrawals Protected youafter make the from waiting your period Annuity begins. • Subject to the maximum age/durational limits described • Subject to the Maximum Protected Income Value, we will no Living Benefit Programs

AMERICAN SKANDIA ANNUITIES PROSPECTUS 72 AMERICAN SKANDIA ANNUITIES PROSPECTUS 73 birthday. birthday, except for th nd (1 – $7,500 / $217,500), or $231,247.79. × ($10,000 – $2,500, or $7,500). ($220,000 – $2,500, or $217,500). Limit (from $242,006.64 to $239,506.64); where: • A is the amount withdrawn less the Remaining• Limit B is the Account Value less the RemainingThe Limit resulting Protected Income Value is: $239,506.64 first Annuity Year. drawn (i.e., reduced by $10,000, from$230,838.37). $240,838.37 to Year is also reduced by the$12,041.92 amount to withdrawn $2,041.92). (from Annuities used as a funding vehiclein for which an case IRA, you SEP must IRA elect orOptions one 403(b), by of the the anniversary GMIB of Annuity the Payment immediately Annuity’s following Issue the Date Annuitant’s on 92 or $242,006.64. As the amount withdrawn exceedsLimit the of Remaining $2,500 from Example 1: • the Protected Income Value is first reduced by• the Remaining The result is then further reduced by the ratio of A to B, • The Remaining Limit is set to zero (0) for theExample balance 3. of the Reset of theA Dollar-for-dollar $10,000 withdrawal Limit is made onIssue the Date, first October anniversary 13, of 2006 the (secondwithdrawal, Annuity the Year). Protected Prior Income to Value the isRemaining $240,838.37. Limit The is reset to 5%the of amount this withdrawn amount, is or less $12,041.92. than As • the dollar-for-dollar limit: the Protected Income Value is reduced by the amount with- • The Remaining Limit for the balance of the second Annuity KEY FEATURE — GMIB AnnuityYou Payments can elect to apply theavailable Protected GMIB Income Annuity Value Payment to Options one on offollowing any the the anniversary initial date waiting period, orperiod any established subsequent upon waiting your election toIncome step-up Value. the Once Protected you have completedwill the have waiting a period, 30-day you period eachsary, year, during prior which to you the may Annuity elect anniver- payments to under begin one receiving of annuity the availableOptions. GMIB You Annuity must Payment elect one ofOptions the by GMIB the Annuity anniversary Payment of theimmediately Annuity’s following Issue the Date Annuitant’s on 95 or —

drawn (i.e., by $10,000, from $251,038.10 to $241,038.10). the balance of the first Annuityamount Year withdrawn is (from also $12,500 reduced to by $2,500). the The following examples of dollar-for-dollar and proportional anniversary of the Issue Date ofstep-up. the Annuity following such Impact of Withdrawals on the Protected Income Value

the Account Value is $220,000 and the Protected Income Value is within the first Annuity Year). Immediately before the withdrawal, A second $10,000 withdrawal is taken on December 13, 2005 (still reductions • the Protected Income Value is reduced by the• amount with- The remaining dollar-for-dollar limit (“Remaining Limit”) for Example 2. Dollar-for-dollar and proportional than the dollar-for-dollar limit: annual effective rate of 5%). As the amount withdrawn is less $251,038.10 (the initial value accumulated for 31 days at an ately prior to the withdrawal, the Protected Income Value is Annuity Year). No prior withdrawals have been taken. Immedi- A $10,000 withdrawal is taken on November 13, 2005 (in the first Example 1. Dollar-for-dollar reduction GMIB or any other fees and charges. forth here are purely hypothetical and do not reflect the charge for dollar-for-dollar limit of $12,500 (5% of $250,000). The values set 3.) an initial Protected Income Value of $250,000; and 4.) a Payment of $250,000 (includes any Credits in the case of XT6); of the GMIB program are October 13, 2005; 2.) an initial Purchase reductions assume that: 1.) the Issue Date and the effective date Annuity Year. to reflect changes in the Protected Income Value during the prior “dollar-for-dollar” basis is adjusted on each Annuity anniversary that the amount available for withdrawals each Annuity Year on a applies to any withdrawals during the Annuity Year. This means Issue Date (or on the Issue Date for the first Annuity Year) and withdrawal amount is determined on each anniversary of the ately (see the examples of this calculation below). The 5% annual Income Value will reduce the Protected Income Value proportion- withdrawals in any Annuity Year in excess of 5% of the Protected reduced by the actual amount of the withdrawal). Cumulative on a “dollar-for-dollar” basis (the Protected Income Value is Protected Income Value will reduce the Protected Income Value Cumulative withdrawals each Annuity Year up to 5% of the • A step-up will increase the dollar for dollar limit on the This is You cannot withdraw your Account Value or the Protected You should note that GMIB istype designed of to insurance provide that a serves asevent a your safety Account net Value only declines in significantly the negative due investment to performance. If your Account Value is not significantly affected byment negative performance, invest- it is unlikely thatthe the GMIB purchase will of result in yourpayments receiving than larger if annuity you had notbecause purchased the GMIB. assumptions that we useGMIB, in such computing as the the annuity purchaseassumptions rates, as (which to include age-setbacks and assumedare interest more rates), conservative than the assumptionscomputing that annuity we payout use options in outside offore, GMIB. you There- may generate higher incometo payments annuitize if a you lower were Account Valuepurchase at rates, the than current if annuity you werewith to a annuitize higher under Protected the Value GMIB thanthe your annuity Account purchase Value rates but, guaranteed at underGMIB the program GMIB. does The not directly affectValue, an Surrender Annuity’s Value Account or the amountthe payable basic under Death either Benefit provision ofoptional the Death Annuity Benefit or provision. any If youAnnuity, surrender you your will receive the currentProtected Surrender Income Value, Value. not The the Protected Incomeapplicable Value if is you only elect to beginunder receiving one annuity of payments the GMIB annuityperiod. options after the waiting can elect which do not imposewhich an do additional not charge, offer but to guaranteemake a annuity minimum payments. value on which to subsequent Purchase Payments if we determine,discretion, at that our based sole on the timing of your Purchase payments until the later of theend death of of the the period Annuitant certain. and the Other Important Considerations • • Each Annuity offers other annuity payment options that you • Where allowed by law, we reserve the right to limit • If the Joint Annuitant dies first, we will continue to make Income Value under either GMIB Annuityannuity Payment payments Option have once begun. We mayfrequencies make available, other such payout as quarterly, semi-annually or annually. continued The amount of each GMIB Annuity Payment will be On the date that you elect to begin receiving GMIB until the later of the deathof of the the period Joint certain. Annuitant However, and if thereceiving the end annuity Joint payments Annuitant following is the still endperiod, of we the will certain reduce the amountpayment of to each 50% subsequent of the original payment amount. determined based on the age and,the where Annuitant permitted by by applying law, the sex Protected of applicable Income tax Value charge (net that of may any bePayment due) Option to you the choose. GMIB We Annuity userates special to annuity calculate purchase the amount ofGMIB each Annuity payment Payment due Options. under These the specialAnnuity rates Payment for Options the are GMIB calculated usinginterest an rate assumed factor that provides forapplied lower to growth produce in annuity the payments value thanannuity if payment you option elected that an is notThese part special of rates the also GMIB are program. calculatedas using “age other setbacks” factors (use such of anactual age age) lower that than result the in Annuitant’s lowerelected payments an than annuity would payment result option if that you program. is Use not of part an of age the setback GMIB the entails Annuitant a which longer in assumed turn life results for in lower annuity payments. Annuity Payments, we guarantee that yourbe payments calculated will based on your Accountcurrent Value annuity and purchase our rates then if thecalculated payment on amount this basis would bebased higher on than the it Protected would Income be ValueGMIB and annuity the purchase special rates. GMIB Annuity Payment Option 1Life — with Payments a for Certain Period Under this option, monthlythe annuity death payments of will thereceived be 120 Annuitant. made monthly If until annuity the payments,monthly the Annuitant annuity remainder payments dies of will the be before 120 made having to the Beneficiary. GMIB Annuity Payment Option 2Joint — Lives Payments with for a CertainUnder Period this option, monthlythe annuity death payments of will bothAnnuitant be the and made the Annuitant until Joint and Annuitantmonthly die the before annuity Joint having Annuitant. received payments, 120 Ifannuity the payments the will be remainder made to of• the Beneficiary. the 120 If the monthly Annuitant dies first, we will continue to make payments Living Benefit Programs

AMERICAN SKANDIA ANNUITIES PROSPECTUS 74 AMERICAN SKANDIA ANNUITIES PROSPECTUS 75 Upon termination of the GMIB program we will deduct the The charge is deducted annually in arrears each Annuity Year No charge applies after the Annuity Date. Termination of the Program The GMIB program cannot be terminatedelected. by The the GMIB Owner program once automatically terminatesdate as your of Annuity the is fully surrendered,Benefit on is the payable date to the your Death Beneficiaryspouse (unless elects your to surviving continue your Annuity),Account or Value on is the transferred date to that begin your The making GMIB annuity program payments. may also beAnnuitant terminated who if would you not designate be a eligible new based to on elect his the or GMIB her program age at the time of the change. charge from your Account Value forYear the since portion the of prior the anniversary Annuity ofthe the Issue Annuity’s Date Issue if Date in (or the first Annuity Year). Charges under the Program Currently, we deduct a charge equalaverage to Protected 0.50% Income per Value year for of the the Because period the the charge charge is applies. calculated basedIncome on Value, the it average does Protected not increaseto or the decrease Annuity’s based Account on Value changes duedollar to amount market you performance. pay The each yearProtected will Income increase Value in increases, any and year it the the will Protected decrease Income in Value any decreases year duespective to of withdrawal, whether irre- your Account Value increases or decreases. on the anniversary of the Issueamount Date of of the an charge Annuity. pro-rata We from deductto the the the Account Sub-accounts Value and allocated the Fixedto Allocations. Account No Value MVA deducted will from apply asurrender Fixed your Allocation. Annuity, If begin you receiving annuitythe payments GMIB under program or any otheravailable annuity during payment an option Annuity we Year, make ornates, the we GMIB will program deduct termi- the chargeYear for since the the portion prior of anniversary the of Annuity the the Issue Annuity’s Date Issue if Date in (or the first Annuity Year).

Payments and withdrawals, your Protected Incomeincreasing Value in is ways we did notto intend. limit In Purchase determining Payments, whether we willPayments look which at are Purchase disproportionately larger thanPurchase your Payment initial and other actions thatincrease may the artificially Protected Income Value. cate Account Value if you participatereserve in the this right program. to We transfer anyinvestment Account option Value to in an a eligible prohibited investmentwe option. prohibit Should access to any investmentrequired option, to any move transfers Account Value tooptions eligible will investment not be counted intransfers determining during the an number Annuity of Year. free Weyou may allocate also your require Account that Value accordingtion to model. an asset alloca- GMIB program, the period of timethe during 5% which annual we growth will rate apply mayof be the changed new based Annuitant. on If the the age eligible new to Annuitant elect would the not GMIB be programat based the on time his of or the her change, age terminate. then the GMIB program will to the same tax treatment as any other annuity payment. under the GMIB program or underoption any we other make annuity available, payment the protectionAnnuity’s provided basic by Death an Benefit or anyprovision optional you Death elected Benefit will no longer apply.

tive date of the program. be used to calculate the Protected Income Value as of the effec- as of the date of election. Your Account Value as of that date will after the Issue Date of your Annuity, the program will be effective eligibility rules and restrictions. If you elect the GMIB program program after the Issue Date of their Annuity, subject to our may offer existing Annuity Owners the option to elect the GMIB as of the effective date of the GMIB program. In the future, we you purchase your Annuity. The Annuitant must be age 75 or less Currently, the GMIB program can only be elected at the time that • We currently limit the Sub-accounts in which you may allo- • If you change the Annuitant after the effective date of the • Annuity payments made under the GMIB program are• subject At the time you elect to begin receiving annuity payments Election of the Program th anniversary of th purchase your Annuity, the Account ValuePurchase will Payment. be your initial benefit, the Account Value on theLifetime date Five of program your will election be of used the Protected to Withdrawal determine Value. the initial withdrawal, the Protected Withdrawal Value willincreased be by the amount of eachPayment. additional Purchase You may elect to step-up your Protected Withdrawal Value if, the first withdrawal under the LifetimeAnnuities Five with program. Lifetime Under Five elected priorProtected to Withdrawal March Value 20, can 2006, be the steppedthe up 5th again anniversary on following or the after precedingelected step-up. the If Lifetime you Five program on or after March 20, 2006, anniversary of the benefit effective date,Value if as earlier of (B) the the date Account ofprior the to first the withdrawal withdrawal, from and your (C) Annuity, each the Annuity highest anniversary Account prior Value to on thefirst first 10 withdrawal Annuity or anniversaries on if the earlierwithdrawal than after the the date benefit of effective your date. first (A) With and respect (C) to above each valuesubsequent is Purchase increased Payments. by With the respect amount to ofadded XT6, any to Credits Purchase are Payments for purposesProtected of Withdrawal calculating Value, the the Annual IncomeAnnual Amount Withdrawal and Amount the (see below forAnnual a Income description Amount of and Annual Withdrawal• Amount). If you elect the Lifetime Five program at the time you • For existing Owners who are electing the Lifetime Five • If you make additional Purchase Payments after your first due to positive market performance, yourthan Account the Value Protected is Withdrawal greater Value. IfFive you program elected prior the to Lifetime March 20,remains 2006 in and effect, that then original you election areWithdrawal eligible Value to on step-up or the after Protected the 5 KEY FEATURE — Protected WithdrawalThe Value Protected Withdrawal Value is initiallyamount used of to each determine initial the annual paymentBenefit under and the the Life Withdrawal Income Benefit. Thedrawal initial Value Protected is With- determined as ofwithdrawal the under date your you Annuity make following your your first Five. election The of initial Lifetime Protected Withdrawal Valuegreater is of equal (A) to the the Account ValueFive on growing the at date 5% you per elect year Lifetime program, from or the application date of of the your Purchase electionas Payment of applicable, to the until your the Annuity, date of your first withdrawal or the 10 continued We offer a program that guarantees your ability to withdraw The Lifetime Five Income Benefit programbelow described is only being offered inwe those have jurisdictions received where regulatory approval andoffered will subsequently be in other jurisdictions whenreceive we regulatory approval in those jurisdictions. Certain terms and conditions may differdictions between once juris- approved. Lifetime Five canonly be where elected the Annuitant and theperson Owner or, are if the the same Annuity Owneris is only an one entity, Annuitant. where Currently, there ifFive you and elect subsequently Lifetime terminate the benefit,be there a will restriction on your abilityand to Spousal re-elect Lifetime Lifetime Five. Five The Annuitantleast must 45 be years at old when theLifetime program Five is Income elected. Benefit The program isyou not elect available any if other optional livingyour benefit. Lifetime As Five long Income as Benefit isallocate in your effect, Account you Value must in accordancethen with permitted the and available option(s) withprogram. this LIFETIME FIVE INCOME BENEFIT (LIFETIME FIVE) amounts equal to a percentage ofthe an “Protected initial Withdrawal principal Value”), value regardless (called ofmarket the performance impact on of your Account Value,program subject rules to regarding our the timing andThere amount are of two withdrawals. options — onewithdrawal is amount designed for to life provide (the an “Life annual other Income is Benefit”) designed and to the provide aas greater long annual as withdrawal there amount is Protecteddescribed Withdrawal below) Value (the (adjusted “Withdrawal as Benefit”). IfProtected there Withdrawal is Value, no the withdrawal benefitYou will do be not zero. choose between thesecontinue two to options; be each available option as will longValue as and your the Annuity Lifetime has Five an is Account Lifetime in Five effect. may Certain remain benefits in under effectyour even Annuity if is the zero. Account The Value program of intend may to be make appropriate periodic if withdrawals you fromto your ensure Annuity that and market wish performance willreceive not annual affect payments. your You ability are to notdrawals required as to part make of with- the programyou — withdraw the less guarantees than are the not maximum lostunder allowable if the amount rules each of year the program. Living Benefit Programs

AMERICAN SKANDIA ANNUITIES PROSPECTUS 76 AMERICAN SKANDIA ANNUITIES PROSPECTUS 77 The Protected Withdrawal Value is reduced each time a withdrawal is made on a dollar-for-dollarAnnuity basis Year up of to the 7% Protected per Withdrawalgreater Value of and a on dollar-for-dollar the basis ordrawals a in pro an rata Annuity basis Year for in with- Protected excess Withdrawal of Value that is amount reduced until to the Annual zero. Withdrawal At Amount that will point be the zerothe until Annuity such reflects time a (if Protected any) Withdrawal as due Value to (for a example, step-up or additionalthe Purchase Annuity). Payments being made into KEY FEATURE — Annual IncomeLife Amount Income under Benefit the The initial Annual Income Amount isProtected equal Withdrawal to Value. 5% Under of the the Lifetime initial your Five cumulative program, withdrawals if in an Annuityequal Year to are the less Annual than Income or Amount,Annual they Income will Amount not in reduce subsequent your Annuitywithdrawals Years, will but reduce any the such Annual Incomefor-dollar Amount basis on in a that dollar- Annuity Year.drawals If are your in cumulative excess with- of theIncome”), Annual your Income Annual Amount Income (“Excess Amount inreduced subsequent (except years with will regard be to requiredthe minimum result distributions) of by the ratio ofimmediately the prior Excess to Income such to withdrawal the (see Accountcalculation examples Value below). of Reductions this include the actualwithdrawal, amount including of any the CDSC that maybe apply. considered A Excess withdrawal Income can under thethough Life it Income does Benefit not even exceed thethe Annual Withdrawal Withdrawal Benefit. Amount When under you electstep-up a is step-up effected), (or your an Annual auto Incomeequal Amount 5% increases of to your Account Valueis after greater the than step-up your if Annual such Income amount Amount Amount. also Your increases Annual if Income you makeThe additional amount Purchase of Payments. the increase isPurchase equal Payments. to Any 5% increase of will any be additional Income added Amount to beginning your on Annual the dayor that the the Purchase step-up Payment is is effective made.have A exceeded determination your of Annual whether Income you Amounteach is withdrawal; made therefore at a the subsequent time increase of Income in Amount the will Annual not offset theexceeded effect the of Annual a Income withdrawal Amount that atwas the made. time the withdrawal

An optional automatic set-up (“Auto Step-Up”) feature is

may be subject to the new charge at the time of such step-up. the charge for Lifetime Five has changed for new purchasers, you implement an Auto Step-Up to your Protected Withdrawal Value, following the most recent step-up. If, on the date that we benefit was elected prior to March 20, 2006) Annuity Anniversary next Auto Step-Up opportunity will occur on the 3rd (5th if the Anniversary until a step-up occurs. Once a step-up occurs, the Auto Step-Up opportunity will occur on each successive Annuity not exceed the Annual Income Amount by 5% or more, then an Income Amount by 5% or more. If 5% of the Account Value does stepped-up if 5% of the Account Value exceeds the Annual At this time, your Protected Withdrawal Value will only be later of the first withdrawal under the benefit or the prior step-up. the benefit was elected prior to March 20, 2006) following the occur on the 3rd Annuity Anniversary (5th Annuity Anniversary if you elect this feature, the first Auto Step-Up opportunity will the benefit is elected or at any time while the benefit is in force. If available for this benefit. This feature may be elected at the time as described below. Value, then we will increase these amounts to reflect the step-up be if we did not reflect the step-up in Protected Withdrawal Amount and Annual Withdrawal Amount are less than they would on the date you are eligible. If your current Annual Income could elect to step-up the Protected Withdrawal Value to $75,000 Withdrawal Value, your Account Value is equal to $75,000. You to $60,000. On the date you are eligible to step-up the Protected withdrawals of $40,000, reducing the Protected Withdrawal Value Withdrawal Value was $100,000 and you have made cumulative Account Value. For example, assume your initial Protected Protected Withdrawal Value to be equal to the then current going forward. Upon election of the step-up, we increase the new purchasers, your program may be subject to the new charge the charges under the Lifetime Five program have changed for Value under the program, and on the date you elect to step-up, March 20, 2006) if you elect to step-up the Protected Withdrawal preceding step-up. In either scenario (i.e., elections before or after be stepped up again on or after the 3rd anniversary following the on or after March 20, 2006, the Protected Withdrawal Value can Lifetime Five program. Under Annuities with Lifetime Five elected on or after the 3rd anniversary of the first withdrawal under the then you are eligible to step-up the Protected Withdrawal Value = $263,484.33 (393/365) 1.05 × withdrawal) = $263,000 Anniversary) = $265,000 February 1, 2005 until March 1,$250,000 2006 (393 days) = (b) Account Value on March 1, 2006 (the date of(c) the first Account Value on February 1, 2006 (the first Annuity Therefore, the initial Protected Withdrawal Value is equal to Year = $18,550 – $10,000 =Annual $8,550 Withdrawal Amount for future Annuityat Years $18,550 remains $13,250 – $10,000 = $3,250 Annual Income Amount for future Annuity$13,250 Years remains at $265,000 to $255,000 Annual Income Amount to subsequent AnnuityHowever, Years. because the Protected Withdrawal Valuereduced is by only the actual amount ofthese withdrawals circumstances, you any make unused under Annual Incomeextend Amount the may period of time untilWithdrawal the Value remaining is Protected reduced to zero. The following examples of dollar-for-dollar and proportional The initial Protected Withdrawal Value is calculated as the (a) Purchase payment accumulated at 5% per year from $265,000. The Annual Withdrawal Amount isunder equal the to Withdrawal $18,550 Benefit (7% ofIncome $265,000). Amount The is Annual equal to $13,250(5% under of the $265,000). Life Income Benefit Example 1. Dollar-for-dollar reduction If $10,000 was withdrawn (less thanAmount both and the the Annual Annual Income Withdrawal Amount)then on the March following 1, values 2006, would result: • Remaining Annual Withdrawal Amount for current Annuity • Remaining Annual Income Amount for current Annuity Year = • Protected Withdrawal Value is reduced by $10,000 from reductions and the step-up of theAnnual Protected Withdrawal Withdrawal Amount Value, and Annual Income1.) Amount the assume: Issue Date and theprogram Effective are Date February of 1, the 2005; Lifetime 2.) Five $250,000; an 3.) initial the Purchase Account Payment Value of on$265,000; February 4.) 1, the 2006 first is withdrawal equal occurs to the on Account March Value 1, is 2006 equal when toon $263,000; February and 1, 5.) 2010 the is Account equal Value here to are $280,000. purely The hypothetical, values and set do forth Lifetime not Five reflect or the any charge other for fees and charges. greatest of (a), (b) and (c): continued The Lifetime Five program does not affect your ability to make Annual Withdrawal Amount under the Withdrawalany Benefit Annuity in Year, you cannot carry-overthe the Annual unused Withdrawal portion Amount of to subsequentHowever, Annuity because Years. the Protected Withdrawal Valuereduced is by only the actual amount ofthese withdrawals circumstances, you any make unused under Annual Withdrawalmay Amount extend the period of timeWithdrawal until Value the is remaining reduced Protected to zero. Annual Income Amount under the LifeAnnuity Income Year, Benefit you in cannot any carry-over the unused portion of the KEY FEATURE — Annual Withdrawalthe Amount Withdrawal under Benefit The initial Annual Withdrawal Amount isProtected equal Withdrawal to Value. 7% Under of the the Lifetime initial your Five cumulative program, withdrawals if each Annuity Yearequal are to less the than Annual or Withdrawal Amount,drawal your Value Protected will With- be reduced oncumulative a withdrawals dollar-for-dollar are basis. in If excess your ofAmount the (“Excess Annual Withdrawal”), Withdrawal your Annual Withdrawalwill Amount be reduced (except with regarddistributions) to by required the minimum result of theto ratio the of Account the Value Excess immediately Withdrawal priorthe to examples such of withdrawal this (see calculation below).actual Reductions amount include of the the withdrawal, includingapply. any When CDSC you that elect may a step-upyour (or Annual an Withdrawal auto Amount step-up increases is to effected), Account equal Value 7% after of the your step-up ifyour such Annual amount Withdrawal is Amount. greater Your than AnnualAmount Withdrawal also increases if you makeThe additional amount Purchase of Payments. the increase isPurchase equal Payments. to A 7% determination of of any whether additional exceeded you your have Annual Withdrawal Amount iseach made withdrawal; at therefore, the a time subsequent of increaseWithdrawal in Amount the will Annual not offset theexceeded effect the of Annual a Withdrawal withdrawal Amount that atdrawal the was time made. the with- withdrawals under your Annuity or limitwithdrawals your that ability exceed to the request Annual IncomeAnnual Amount Withdrawal and Amount. the You are notor required any to portion withdraw of all the AnnualIncome Withdrawal Amount Amount in or each Annual Annuity Year. • If, cumulatively, you withdraw an amount less than the • If, cumulatively, you withdraw an amount less than the Living Benefit Programs

AMERICAN SKANDIA ANNUITIES PROSPECTUS 78 AMERICAN SKANDIA ANNUITIES PROSPECTUS 79 $246,450 = $6,503 × 3)}. If a step-up is elected on Protected Withdrawal Value = × × election of the auto step-up feature,see we if would an first auto check step-up to shouldthe occur Account by Value checking exceeds to the see Annual ifor Income 5% more. Amount of 5% by of 5% the Accountwhich Value is is $14,000. equal 5% to of 5% the ofis Annual $280,000, $662.50, Income which Amount added ($13,250) to the$13,912.50. Annual Since Income 5% Amount of is the Account$13,912.50, Value the is step-up greater would than still occurall in of this the scenario, values and would be increased as indicated above. current Annual Withdrawal Amount or 7%Protected of Withdrawal the Value. stepped Current up Annual Withdrawal Amount is $18,550. 7% of thedrawal stepped-up Value Protected is With- 7% of $280,000,the which Annual is Withdrawal $19,600. Amount Therefore is increased to $19,600. withdrawals in the current Annuity YearAnnual are Withdrawal greater Amount, than the the Lifetime Fiveterminate. program To will the extent that yourreduced Account to Value zero was as a resultare of equal cumulative to withdrawals or that less than the Annual Income Amount and reduction or a proportional reduction. Dollar-for-dollar reduction = $25,000 – $18,550 = $6,450 before Excess Withdrawal $6,450 / ($263,000 – $18,550) Protected Withdrawal Value = $246,450 –$6,503} max = {$6,450, $239,947 2010 = $280,000 Annual Income Amount or 5% ofWithdrawal the Value. stepped Current up Annual Protected Income Amount$13,250. is 5% of the stepped up5% Protected of Withdrawal $280,000, Value which is is $14,000.Income Therefore, Amount the is Annual increased to $14,000. • If the step-up request on February 1, 2010 was due to the • Annual Withdrawal Amount is equal to the greater of the BENEFITS UNDER THE LIFETIME FIVE• PROGRAM If your Account Value is equal to zero, and the cumulative • Proportional reduction = Excess Withdrawal / Account Value Example 3. Step-up of theIf Protected the Withdrawal Annual Income Value Amount ($13,250)starting is on withdrawn March each 1, year 2006 forWithdrawal a Value period on of February 3 1, years, 2010 the$225,250 would Protected {$265,000 be – reduced ($13,250 to February 1, 2010, then the following• values would result: Protected Withdrawal Value = Account Value on February• 1, Annual Income Amount is equal to the greater of the current $13,250 = $623 $13,250 = $93 Annual Withdrawal × × $18,550 = $489 × Annual Income Annual Income × × ×

Amount and the Annual Withdrawal Amount)2006, on then March the 1, following values would result: Amount but less than the AnnualMarch Withdrawal 1, Amount) 2006, on then the following values would result:

Account Value before Excess Withdrawal Account Value before Excess Income Annual Income Amount for future Annuity$13,250 Years – = $623 = $12,627 Withdrawal Amount ($18,550) from $265,000 tois $246,450. further It reduced by the greater of a dollar-for-dollar Excess of withdrawal over the Annual($25,000 Income – Amount $13,250 = $11,750) reducesAmount Annual for Income future Annuity Years. Annual Withdrawal Amount for future Annuity$18,550 Years – = $489 = $18,061 Amount = $11,750 / ($263,000 – $13,250) Year = $0 Excess of withdrawal over the Annual($25,000 Withdrawal – Amount $18,550 = $6,450) reducesAmount Annual for Withdrawal future Annuity Years. Account Value before Excess Income Annual Income Amount for future Annuity$13,250 Years – = $93 = $13,157 $265,000 to $250,000 Excess of withdrawal over the Annual($15,000 Income – Amount $13,250 = $1,750) reducesfor Annual future Income Annuity Amount Years. Year = $18,550 – $15,000 =Annual $3,550 Withdrawal Amount for future Annuityat Years $18,550 remains Amount = $1,750 / ($263,000 – $13,250) Amount = $6,450 / ($263,000 - $18,550)

• Protected Withdrawal Value is first reduced by the Annual • Reduction to Annual Income Amount = Excess Income/ • Remaining Annual Income Amount for current Annuity Year = $0 • Reduction to Annual Withdrawal Amount = Excess Withdrawal/

• Remaining Annual Withdrawal Amount for current Annuity • Protected Withdrawal Value is reduced by $15,000(b) from If $25,000 was withdrawn (more than both the Annual Income

• Reduction to Annual Income Amount = Excess Income/ • Remaining Annual Income Amount for current Annuity Year = $0 (a) If $15,000 was withdrawn (more than the Annual Income • Remaining Annual Withdrawal Amount for current Annuity reductions Example 2. Dollar-for-dollar and proportional the remaining Protected Withdrawal Value ifmake less. such We annuity payments until theAnnuitant’s earlier death of or the the date theValue Protected is Withdrawal depleted. payments. Such present value will bethe calculated greater using of the single lifecurrently fixed available annuity or rates the then single lifeguaranteed fixed in annuity your rates Annuity; and Withdrawal Value and calculate an Annualan Income Annual Amount Withdrawal and Amount as ifdrawal you on made the your date first the with- annuity payments are to begin. be treated, for tax purposes, in thedrawals same under way your as Annuity. any The other Lifetime with- Fivedirectly program affect does your not Annuity’s Account Value orbut Surrender any Value, withdrawal will decrease the Accountamount Value of by the the withdrawal (plus any applicablesurrender CDSC). your If Annuity, you you will receive theValue, current not Surrender the Protected Withdrawal Value. all of the terms and conditionsapplicable of CDSC. your Annuity, including any Account Value is greater than zeroLifetime without Five purchasing program. the The Lifetime Fiveguarantee program that provides if a your Account Valueperformance, declines you due will to be market able toWithdrawal receive Value your or Protected Annual Income Amountperiodic in benefit the payments. form of then permitted and available option(s) withorder this to program elect in and maintain the Lifetime Five program. We must receive your request in a form acceptable to us at payments are to begin, we willpayments make as annual a annuity single life fixedcertain annuity using with the five greater payments of theavailable annuity or rates the then annuity currently rates guaranteedamount in that your will Annuity. be The applied towill provide be such the annuity greater payments of: (1) the present value of future Annual Income Amount (2) the Account Value. • If no withdrawal was ever taken, we will determine a Protected Other Important Considerations • Withdrawals under the Lifetime Five program are subject to • Withdrawals made while the Lifetime Five program is in effect will • You can make withdrawals from your Annuity while your • You must allocate your Account Value in accordance with the our office. • In the absence of an election when mandatory annuity continued available; or begin, we make annuity payments eachAnnual year Income equal Amount. to We the make suchpayments annuity until the Annuitant’s death; or begin, we pay out any remainingValue Protected as Withdrawal annuity payments. Each yearpayments such will annuity equal the Annual Withdrawal Amount or amounts are still payable under bothand the the Life Withdrawal Income Benefit, Benefit you willreceiving be the given payments the under choice the of Lifeunder Income the Benefit Withdrawal or Benefit. Thus, inremaining that amounts scenario, under the the Life IncomeWithdrawal Benefit Benefit and would the be payable evenAccount though Value your was reduced to zero.election Once we you will make make this an additionalYear payment equal for to that either Annuity the remainingAnnual Annual Withdrawal Income Amount Amount for or the Annuitydepending Year, on if the any, option you choose.Years In we subsequent make Annuity payments that equalIncome either Amount the or Annual the Annual Withdrawaldescribed Amount in as this Prospectus. You willthe not option be after able your to election change andPayments no will further be Purchase accepted under yourmake Annuity. an If election, you we do will not payIncome you Benefit. annually To under the the extent Life thatthe cumulative current withdrawals Annuity in Year that reducedzero your are Account more Value than to the Annualor Income equal Amount to but the less Annual than Withdrawalstill Amount payable and under amounts the are Withdrawal Benefit,the you payments will under receive the Withdrawal Benefit.withdrawal In that the reduced year your of Account a Valuemake to an zero, additional we payment will to equalWithdrawal any Amount remaining and Annual make payments equalWithdrawal to Amount the in Annual each subsequent yearProtected (until Withdrawal the Value is depleted). OnceValue your equals Account zero no further Purchaseaccepted Payments under will your be Annuity. Annuity or if you decide toand begin there receiving is annuity any payments Annual IncomeAnnuity Amount Years due or in any subsequent remaining Protectedyou Withdrawal can Value, elect one of the(1) following three options: apply your Account Value to any annuity option (2) request that, as of the date annuity payments are to (3) request that, as of the date annuity payments are to • If annuity payments are to begin under the terms of your Living Benefit Programs

AMERICAN SKANDIA ANNUITIES PROSPECTUS 80 AMERICAN SKANDIA ANNUITIES PROSPECTUS 81 . For a Tax Sheltered Annuity or a 401(a) plan for 2 ⁄ 1 The charge for the Lifetime Five program will no longer be The Spousal Lifetime Five program describedonly below being is offered in those jurisdictionsreceived where regulatory we approval have and will besubsequently offered in other jurisdictions when weregulatory receive approval in those jurisdictions. Certainand terms conditions may differ between jurisdictionsapproved. once Currently, if you elect Spousalsubsequently Lifetime terminate Five the and benefit, there willrestriction be on a your ability to re-electand Spousal Lifetime Lifetime Five. Five We reserve theelection right frequency to in further the limit future. the Beforechange making to any the such election frequency, wenotice will to provide Owners prior who have anFive effective Income Spousal Benefit. Lifetime Spousal Lifetime Fiveelected must based be on two Designated Lives,below. as Each described Designated Life must bewhen at the least benefit 55 is years elected. old Theprogram Spousal is Lifetime not Five available if youliving elect benefit any or other Death optional Benefit. AsLifetime long Five as Income your Benefit Spousal is incate effect, your you Account must Value allo- in accordancepermitted with and the available then option(s) with this program. Additional Tax Considerations forArrangements Qualified Contracts/ If you purchase an Annuity as“qualified” an investments, investment including vehicle an for IRA, SEP-IRA,Annuity Tax (or Sheltered 403(b)) or employer planthe under minimum Code distribution Section rules 401(a), under thebegin Code receiving require periodic that amounts you from yourafter Annuity age beginning 70 which the participant is not aemployer, greater this than required 5 beginning percent date owner canto of generally retirement, the be if deferred later. Roth IRAsduring are the not Owner’s subject lifetime. to The these amountmay rules required exceed under the the Annual Code Withdrawal AmountIncome and Amount, the which Annual will cause usIncome to Amount increase and the the Annual Annual WithdrawalAnnuity Amount Year in that any required minimum distributionsAnnuity due are from greater your than such amounts.reduce Any your such Protected payments Withdrawal will Value. Inand addition, duration the of amount payments under theBenefit annuity provisions payment may and be Death adjusted sotrigger that any the penalty payments or do excise not taxesas due minimum to distribution tax requirements. considerations such SPOUSAL LIFETIME FIVE INCOME(SPOUSAL BENEFIT LIFETIME FIVE) deducted from your Account Value upon termination of the program.

If you elected Lifetime Five prior to March 20, 2006, and you Currently, if you terminate the program, you will only be

program for new elections or re-elections at any time in the future. circumstances listed above. However, we may stop offering the at any time, we may not terminate the program other than in the receiving annuity payments. While you may terminate your program upon change in the Annuitant or upon your election to begin Annuity that changes the tax identification number of the Owner, she was a new purchaser), upon a change in ownership of your and your spouse would then be eligible to elect the benefit if he or Lifetime Five if your spouse elects the spousal continuance option death of the Annuitant (but your surviving spouse may elect a new program terminates upon your surrender of your Annuity, upon the on re-election of the benefit will apply as described above. The Termination of the Program as of the date the termination is effective and certain restrictions Owners who have an effective Lifetime Five Income Benefit. the program, any guarantee provided by the benefit will terminate re-election/election frequency, we will provide prior notice to terminate the program at any time by notifying us. If you terminate frequency in the future. Before making any such change to the Withdrawal Value and Annual Income Amount equal zero. You may re-elections. We reserve the right to limit the re-election/election The program terminates automatically when your Protected the waiting period described above will apply to subsequent of the Annuity Date. However, once you choose to re-elect/elect, Spousal Lifetime Five on any date on or after the next anniversary Lifetime Five, you will be able to re-elect the program or elect Issue Date and within the same Annuity Year that you terminated time Five. If you had previously elected Lifetime Five after the Date and within the same Annuity Year that you terminate Life- that you had not previously elected Lifetime Five after the Issue can re-elect the program or elect Spousal Lifetime Five provided terminate the program, there will be no waiting period before you drawal Amount, and the Annual Income Amount. Protected Withdrawal Value, the initial Protected Annual With- the date of election will be used as a basis to calculate the initial subject to our eligibility rules and restrictions. Your Account Value as elect the Lifetime Five program after the Issue Date of their Annuity, purchase your Annuity. We also offer existing Owners the option to The Lifetime Five program can be elected at the time that you Election of the Program nated. least 90 calendar days from the date the benefit was last termi- Five Income Benefit on any anniversary of the Issue Date that is at permitted to re-elect Lifetime Five or elect the Spousal Lifetime anniversary rd anniversary of the preceding step-up. If you elect to rd An optional automatic step-up (“Auto Step-Up”) feature is the Spousal Lifetime Five program willthe be initial used Protected to Withdrawal determine Value. You may elect to step-up your Annual Income Amount if, due step-up the Annual Income Amount underdate the you program, elect and to on step-up, the theFive charges program under have the changed Spousal for Lifetime newmay purchasers, be your subject program to the newWhen charge you at elect the a time step-up, of your suchto Annual step-up. equal Income 5% Amount of increases your AccountIncome Value Amount after also the increases step-up. if Your you Annual Payments. make The additional amount Purchase of the increaseadditional is Purchase equal Payments. to Any 5% increase of will any Annual be Income added Amount to beginning your on theeffective day or that the the Purchase step-up Payment is iswhether made. you A have determination exceeded of your Annualat Income the Amount time is of made each withdrawal;in therefore the a Annual subsequent Income increase Amount willwithdrawal not that offset exceeded the the effect Annual of Income a the Amount withdrawal at was the made. time available for this benefit. This featurethe may benefit be is elected elected at or the at time you any elect time this while feature, the the benefit first is Auto in Step-Up force. opportunity If will of the first withdrawal under theThe Spousal Annual Lifetime Income Five Amount program. can bethe stepped 3 up again on or after KEY FEATURE — Annual IncomeSpousal Amount Life under Income the Benefit The initial Annual Income Amount isProtected equal Withdrawal to Value. 5% Under of the the Spousal initial program, Lifetime if Five your cumulative withdrawals inless an than Annuity or Year equal are to thereduce Annual your Income Annual Amount, Income they Amount will in not but subsequent any Annuity such Years, withdrawals will reduceon the a Annual dollar-for-dollar Income basis Amount in thatwithdrawals Annuity are Year. in If excess your of cumulative theIncome”), Annual your Income Annual Amount Income (“Excess Amount inreduced subsequent (except years with will regard be to requiredthe minimum result distributions) of by the ratio ofimmediately the prior Excess to Income such to withdrawal the (see Accountcalculation examples Value below). of Reductions this include the actualwithdrawal, amount including of any the CDSC that may apply. to positive market performance, 5% ofgreater your than Account the Value Annual is Income Amount.step-up You the are Annual eligible Income to Amount on or after the 3 continued anniversary of the benefit th purchase your Annuity, the Account ValuePurchase will Payment. be your initial Five benefit, the Account Value on the date of your election of We offer a program that guarantees until the later death of effective date, if earlier (B) thethe Account first Value withdrawal as from of your the Annuity, dateand prior of (C) to the the highest withdrawal, Account Valueprior on to each the Annuity first anniversary withdrawal orries on if the earlier first than 10 the Annuity date anniversa- benefit of effective your date. first With withdrawal respect after to the value (A) is and increased (C) by above, the each amountPayments. of With any respect subsequent to Purchase XT6, CreditsPayments are for added purposes to of Purchase calculating theValue Protected and Withdrawal the Annual Income Amountof (see Annual below Income for Amount). a description • If you elect the Spousal Lifetime Five program at the time you • For existing Owners who are electing the Spousal Lifetime KEY FEATURE — Initial ProtectedThe Withdrawal initial Protected Value Withdrawal Value isamount used of to initial determine annual the payment underBenefit. the The Spousal initial Life Protected Income Withdrawal Valueof is the determined date as you make yourfollowing first your withdrawal election under of the Spousal Annuity LifetimeProtected Five. Withdrawal The Value initial is equal toAccount the Value greater on of the (A) date the youany elect additional Spousal Purchase Lifetime Payments Five, growing plus atthe 5% application per of year the from Purchase Paymentdate to of your your Annuity, first until withdrawal the or the 10 Living Benefit Programs two natural persons that are eachelection other’s of spouses Spousal at Lifetime the Five time and of them at (the the “Designated first Lives”, death each of a oneto “Designated of withdraw Life”) an the annual ability amount (“Spousalequal Life to Income a Benefit”) percentage of anWithdrawal initial Value”) principal regardless value of (the the “Protected impactance of on market the perform- Account Value, subjectthe to timing our and program amount rules of regarding withdrawals.Benefit The may Spousal remain Life in Income effect evenAnnuity if is the zero. Account The Value program of may the make be periodic appropriate withdrawals if from you your intend Annuity, to market wish performance to will ensure not that affect yourpayments, ability and to wish receive either annual spouse toSpousal be Life able Income to Benefit continue after the thenot death required of to the make first. withdrawals You as are guarantees part are of not the lost program if — you the allowable withdraw amount less each than year the under maximum the rules of the program.

AMERICAN SKANDIA ANNUITIES PROSPECTUS 82 AMERICAN SKANDIA ANNUITIES PROSPECTUS 83 $13,250 = $93 × Annual Income × Excess of withdrawal over the Annual($15,000 Income – Amount $13,250 = $1,750) reducesfor Annual future Income Annuity Amount Years. Account Value before Excess Income Annual Income Amount for future Annuity$13,250 Years – = $93 = $13,157 result of cumulative withdrawals that are equalthe to Annual or Income less Amount than and amounts arethe still Spousal payable Life under Income Benefit, we willpayment make for an that additional Annuity Year equal toIncome the Amount remaining for Annual the Annuity Year, ifscenario, any. the Thus, remaining in Annual that Income Amount would be Therefore, the initial Protected Withdrawal Value is equal to $13,250 – $10,000 = $3,250 Annual Income Amount for future Annuity$13,250 Years remains at Amount = $1,750 / ($263,000 – $13,250) • Remaining Annual Income Amount for current Annuity Year = $0 • Reduction to Annual Income Amount = Excess Income/ Example 3. Step-up of theIf Annual a step-up Income of Amount the AnnualFebruary Income 1, Amount 2010, is the requested request on willAccount be Value, accepted which because is 5% $14,000 of (5% the the of Annual $280,000), Income is Amount greater of than $13,250.Amount The will new be Annual equal Income to $14,000.to If the the election step-up of request the was auto due occur step-up because feature, 5% the of step-up Account would Value still Income would Amount exceed by the more Annual than 5%.$13,250 (5% + of $662.50 $13,250 = = $13,912.50; $662.50; $14,000 > $13,912.50). BENEFITS UNDER THE SPOUSAL LIFETIMEPROGRAM FIVE • To the extent that your Account Value was reduced to zero as a $265,000. The Annual Income Amount isthe equal Spousal to Life $13,250 Income under Benefit (5% of $265,000). Example 1. Dollar-for-dollar reduction If $10,000 was withdrawn (less thanon the March Annual 1, Income 2006, Amount) then the• following values would result: Remaining Annual Income Amount for current Annuity Year = Example 2. Dollar-for-dollar and proportional reductions If $15,000 was withdrawn (more thanon the March Annual 1, Income 2006, Amount) then the following values would result: ) = $263,484.33 (393/365 1.05 ×

February 1, 2005 until March 1,$250,000 2006 (393 days) = withdrawal) = $263,000 Anniversary) = $265,000

The initial Protected Withdrawal Value is calculated as the (a) Purchase payment accumulated at 5% per year from The following examples of dollar-for-dollar and proportional (b) Account Value on March 1, 2006 (the date of(c) the first Account Value on February 1, 2006 (the first Annuity If, cumulatively, you withdraw an amount less than the The Spousal Lifetime Five program does not affect your ability

Spousal Lifetime Five or any other fees and charges. greatest of (a), (b) and (c): here are purely hypothetical, and do not reflect the charge for the on February 1, 2010 is equal to $280,000. The values set forth the Account Value is equal to $263,000; and 5.) the Account Value $265,000; 4.) the first withdrawal occurs on March 1, 2006 when of $250,000; 3.) the Account Value on February 1, 2006 is equal to Five program are February 1, 2005; 2.) an initial Purchase Payment 1.) the Issue Date and the Effective Date of the Spousal Lifetime reductions and the step-up of the Annual Income Amount assume: Annual Income Amount to subsequent Annuity Years. any Annuity Year, you cannot carry-over the unused portion of the Annual Income Amount under the Spousal Life Income Benefit in

Income Amount on a dollar-for-dollar basis in that Annuity Year. Annuity Years, but any such withdrawals will reduce the Annual they will not reduce your Annual Income Amount in subsequent Annuity Year are less than or equal to the Annual Income Amount, Under Spousal Lifetime Five, if your cumulative withdrawals in an request withdrawals that exceed the Annual Income Amount. to make withdrawals under your Annuity or limit your ability to new charge at the time of such step-up. Five has changed for new purchasers, you may be subject to the to your Annual Income Amount, the charge for Spousal Lifetime recent step-up. If, on the date that we implement an Auto Step-Up will occur on the 3rd Annuity Anniversary following the most occurs. Once a step-up occurs, the next Auto Step-Up opportunity will occur on each successive Annuity Anniversary until a step-up Income Amount by 5% or more, then an Auto Step-Up opportunity or more. If 5% of the Account Value does not exceed the Annual of the Account Value exceeds the Annual Income Amount by 5% time, your Annual Income Amount will only be stepped-up if 5% first withdrawal under the benefit or the prior step-up. At this occur on the 3rd Annuity Anniversary following the later of the Amount as if you made yourannuity first payments withdrawal are on to the begin. date the subject to all of the termsincluding and any conditions CDSC. of the Annuity, is in effect will be treated,as for any tax other purposes, withdrawals in under the the sameLifetime Annuity. way Five The program Spousal does not directlyAccount affect Value the or Annuity’s Surrender Value, butdecrease any the withdrawal Account will Value by the(plus amount any of applicable the CDSC). withdrawal If youwill surrender receive your the Annuity, current you Surrender Value. Account Value is greater than zeroSpousal without Lifetime purchasing Five the program. The Spousalprogram Lifetime provides Five a guarantee that ifdeclines your due Account to Value market performance, youreceive will your be Annual able Income to Amount inbenefit the payments. form of periodic then available option(s) that we mayand permit maintain in the order Spousal to Lifetime elect Five program. charged the full amount for theeven Spousal when Lifetime the Five benefit program is onlyincome providing based a on guarantee one of life with no survivorship. Spousal Lifetime Five program upon thethe death Designated of Life an must owner, elect toAnnuity assume under ownership the of spousal the continuation option.Owners/Spousal See Beneficiaries”, “Spousal and “Spousal Beneficiary — Assumption of Annuity” in this Prospectus. the same person and the beneficiary is the Owner’s spouse. Other Important Considerations • Withdrawals under the Spousal Lifetime Five program are • Withdrawals made while the Spousal Lifetime Five program • You can make withdrawals from your Annuity while your • You must allocate your Account Value in accordance with the • There may be circumstances where you will continue to be • In order for the Surviving Designated Life to continue the Election of and Designations underSpousal the Lifetime Five Program can only beDesignated elected Lives. based Designated on Lives two must beare natural each persons other’s who spouses at theand time at of the election death of of the the program Currently, first the of program the may Designated only Lives be toAnnuitant elected die. and where Beneficiary the designations Owner, are as• follows: One Annuity Owner, where the Annuitant and the Owner are continued or begin, we make annuity payments eachAnnual year Income equal Amount. to We the will makethe payments first until of the Designated Livesto to make die, payments and until will the continue deathDesignated of Life the as second long as thespouses Designated at Lives the were time of the first death. payments. Such present value will bethe calculated same using basis that is usedfixed to annuity calculate rates the then single currently life availablelife or fixed the annuity single rates guaranteed in your Annuity; and payable even though your Account Value wasIn reduced subsequent to Annuity zero. Years we make paymentsAnnual that Income equal Amount the as described in thisfurther Prospectus. Purchase No Payments will be accepted underAnnuity. your We will make payments until theDesignated first Lives of to the die, and will continueuntil to the make death payments of the second DesignatedDesignated Life Lives as were long spouses as at the the timeTo of the the extent first that death. cumulative withdrawals inAnnuity the Year current that reduced your Account Valuethan to the zero Annual are Income more Amount, the SpousalBenefit Life terminates Income and no additional payments will be made. Annuity or if you decide toand begin there receiving is annuity any payments Annual IncomeAnnuity Amount Years, due you in can subsequent elect oneoptions: of the following two (1) apply your Account Value to any annuity option available; (2) request that, as of the date annuity payments are to We must receive your request in a form acceptable to us at payments are to begin, we willpayments make as annual a annuity joint and survivorfixed or annuity single with (as five applicable) payments life certainthat using is the used same to basis calculate thecurrently greater available of or the the annuity annuity rates rates then Annuity. guaranteed The in amount your that will beannuity applied payments to will provide be such the greater(1) of: the present value of future Annual Income Amount (2) the Account Value. Protected Withdrawal Value and calculate an Annual Income • If annuity payments are to begin under the terms of your our office. • In the absence of an election when mandatory annuity • If no withdrawal was ever taken, we will determine an initial Living Benefit Programs

AMERICAN SKANDIA ANNUITIES PROSPECTUS 84 AMERICAN SKANDIA ANNUITIES PROSPECTUS 85 . For a Tax Sheltered Annuity or a 401(a) plan for 2 ⁄ 1 The charge for the Spousal Lifetime Five program will no which the participant is not aemployer, greater this than required 5 beginning percent date owner can ofto generally the retirement, be if deferred later. Roth IRAsduring are the not Owner’s subject lifetime. to The these amount rules may required exceed under the the Annual Code Income Amount,increase which the will Annual cause Income us Amount to inrequired any minimum Annuity distributions Year due that from yourthan Annuity such are amounts. greater In addition, thepayments amount under and the duration annuity of payment andsions Death may Benefit be provi- adjusted so thatpenalty the or payments excise do taxes not due trigger to any minimum tax distribution considerations requirements. such as provided by the benefit will terminatenation as is of effective the and date certain the restrictions termi- benefit on will re-election apply of as the described above.further We limit reserve the the frequency right election to interminates the upon future. your The surrender program of theDesignated Annuity, Life upon to the die first if thesecond Annuity Designated is Life not to continued, die upon or the receiving upon annuity your payments. election to begin longer be deducted from your Accountthe Value program. upon termination of Additional Tax Considerations for Qualified Contracts/Arrangements If you purchase an Annuity as“qualified” an investments, investment including vehicle an for IRA, SEP-IRA,Annuity Tax (or Sheltered 403(b)) or employer planthe under minimum Code distribution Section rules 401(a), under thebegin Code receiving require periodic that amounts you from yourafter Annuity age beginning 70

We reserve the right to further limit the election frequency in Currently, if you terminate the program, you will only be The Spousal Lifetime Five program can be elected at the time The Owner/Annuitant and the beneficiary eachleast must 55 be years at old at the time of election; or spouses. The Beneficiary designation must bespouse. the The surviving first named Owner mustOwners be must the each Annuitant. be Both at leastelection. 55 years old at the timeNo of Ownership changes or Annuitant changes will be

by notifying us. If you terminate the program, any guarantee Amount equals zero. You may terminate the program at any time The program terminates automatically when your Annual Income Termination of the Program effective Spousal Lifetime Five Income Benefit. frequency, we will provide prior notice to Owners who have an the future. Before making any such change to the election terminated. least 90 calendar days from the date the benefit was last Income Benefit on any anniversary of the Issue Date that is at permitted to re-elect the program or elect the Lifetime Five Value and the Annual Income Amount. used as a basis to calculate the initial Protected Withdrawal restrictions. Your Account Value as the date of election will be Issue Date of their Annuity, subject to our eligibility rules and the option to elect the Spousal Lifetime Five program after the that you purchase your Annuity. We also offer existing Owners without affecting the benefit. co-owned, the Owner that is not the Annuitant may be removed • Co-Annuity Owners, where the Owners are each other’s permitted once this program is elected. However, if the Annuity is ” are determined by calculating Proportional withdrawals “ Currently, these benefits are only offereddictions in where those we juris- have received regulatoryand approval must be elected at theAnnuity. time We that may, you at purchase a your laterOwners date, to allow purchase existing an Annuity optional Deathto Benefit our subject rules and any changesbenefits. or Certain restrictions terms in and the conditions maybetween differ jurisdictions once approved and ifpurchase you your Annuity as part ofreplacement an or exchange, transfer, in whole orother in Annuity part, we from issue. any The “Combinationand 5% Highest Roll-up Anniversary Value” Death Benefitbe may elected only individually, and cannot becombination elected with in any other optional Deathyou Benefit. elect If Spousal Lifetime Five, youelect are an not optional permitted Death to Benefit. Withunder respect certain to circumstances, XT6, each Optional Death Benefit that you elect may beCredits reduced applied by to the your amount Purchase of Payments. Enhanced Beneficiary Protection Optional Death Benefit The Enhanced Beneficiary Protection Optional Deathprovide Benefit additional can amounts to your Beneficiaryto that offset may federal be and used state taxesyour payable Annuity on at any the taxable time gains of in appropriate your for death. you Whether may this depend benefit on is including your other particular financial circumstances, resources that mayBeneficiary be to available pay to taxes your on youraccumulation Annuity period. should No you benefit die is during payable the after if the death Annuity occurs Date. on or the percentage of your Account Valuerepresented that when each withdrawn. prior For withdrawal example, aof withdrawal Account of Value 50% would be consideredPurchase as Payments a for 50% purposes reduction of in calculatingBenefit. the basic Death OPTIONAL DEATH BENEFITS Four optional Death Benefits are offeredAnnuity for to purchase provide with an your enhanced levelbeneficiaries. of protection for your is the Notwithstanding basic Death Benefit if death occurs after the decedent’s If a Contingent Annuitant was the Death Benefit is your Account Value in the If an Annuity is owned by one or more natural Except as noted below for ASL II, where death occurs after tional withdrawals. Interim Value in the Fixed Allocations. With respect to ASL II, With respect to XT6, the basic Death Benefit is reduced by WHAT TRIGGERS THE PAYMENT OFDEATH A BENEFIT? Each Annuity provides a Death Benefitperiod. during its accumulation persons, the Death Benefit is payableof upon an the Owner. first If death an AnnuityBenefit is is owned payable by upon an the entity, Annuitant’s theContingent death, Death Annuitant. if there is no designated before the Annuitant’s death andthen the the Annuitant Contingent dies, Annuitant becomes theDeath Annuitant Benefit and will a not be paidwhose at death that the time. Death The Benefit person is upon “decedent.” paid is referred to below as the BASIC DEATH BENEFIT Each Annuity providescharge. a The Insurance basic Charge Death weValue deduct allocated Benefit daily to from the at your Sub-accountsthe no Account is used, additional in risk part, toguarantee we pay us under for assumedifferent an in optional Annuity. Death providing Benefitsadditional Each the that Annuity can charge. basic becompensate also American purchased Death The offers Skandia for for Benefit an protection four additional providing under increased the insurance charge optionalthe Death is Benefits. additionalDeath deducted protection Benefits, provided to thereducing under the additional net performance the of costaddition, the with optional investment respect has options. to XT6, In the underyour certain Death circumstances, impact Benefit of mayCredits be we applied reduced to by yourare the Purchase Credits Payments. amount Applied (See to of “How My any Account Value”.) the decedent’s age 85, or older,greater the of: • The sum of all Purchase Payments less the• sum of all propor- The sum of your Account Value in the Sub-accounts and your age 85 or older: Sub-accounts and your Interim Value in the Fixed Allocations. the amount of any Credits applieddate within of 12 death. months prior to the Death Benefit

AMERICAN SKANDIA ANNUITIES PROSPECTUS 86 AMERICAN SKANDIA ANNUITIES PROSPECTUS 87 See Appendix B for examples of how the Enhanced Certain of the Portfolios offered as Sub-accounts under The Enhanced Beneficiary Protection Optional Death Benefit is being offered in thosehave jurisdictions received where regulatory we approval. Certain termsconditions and may differ between jurisdictions once approved. With respect to XT6, APEXplease II see and Appendix ASL E II, for aEnhanced description Beneficiary of Protection the Optional Death Benefit offered before November 18, 2002jurisdictions in where those we received regulatory approval. Please refer to the section entitlederations” “Tax for Consid- a discussion of specialfor tax purchasers considerations of this benefit. TheBeneficiary Enhanced Protection Death Benefit is notyou available elect if the “Combination 5% Roll-upAnniversary and Value” Highest Death Benefit. Beneficiary Protection Optional Death Benefit is calculated. Highest Anniversary Value Death BenefitIf (“HAV”) an Annuity has one Owner,the the time Owner the must Highest be Anniversary age Value 79purchased. Optional or If Death less an Benefit at Annuity is has jointbe Owners, age the 79 oldest or Owner less. must Iftant an must Annuity be is age owned 79 by or an less. entity, the Annui- the Annuity are not available ifAnniversary you Value elect Death the Benefit. Highest In addition,the we right reserve to require you tomodel(s) use if certain you asset elect allocation this death benefit. ” are determined by calculating described above; ” under an Annuity, as defined below. If the Annuity has one Owner, the Owner Growth ” means the sum of your Account Value in the

basic Death Benefit

Proportional withdrawals Growth

“ “ PLUS The Enhanced Beneficiary Protection Optional Death

The Enhanced Beneficiary Protection Optional Death Benefit is subject to a maximumPayments of applied 100% to of an all Annuity Purchase atto least the 12 death months of prior the decedentthe that Death triggers Benefit. the payment of Purchase Payments. of Account Value would be considered as a 50% reduction in represented when withdrawn. For example, a withdrawal of 50% the percentage of your Account Value that each prior withdrawal

drawals. respect to XT6) reduced by the sum of all proportional with- Credits applied within 12-months prior to the date of death, with minus the total of all Purchase Payments (less the amount of any Sub-accounts and your Interim Value in the Fixed Allocations, 1. the 2. 40% of your “ Death Benefit, the Death Benefit is calculated as follows: If you purchase the Enhanced Beneficiary Protection Optional Optional Death Benefit Calculation of Enhanced Beneficiary Protection age 75 or less. less. If an Annuity is owned by an entity, the Annuitant must be basic Death Benefit. Annuity has joint Owners, the oldest Owner must be age 75 or Benefit provides a benefit that is payable in addition to the must be age 75 or less at the time the benefit is purchased. If an the : See Appendix B for examples of how the Highest Anniversary Certain of the Portfolios offered as Sub-accounts under above; and The calculation of the 5% Roll-up depends on whether death If the Owner dies before the Death Benefit Target Date Purchase Payments more than twelve (12)date months of prior death to in the caseeffective of interest XT6) rate increasing of at 5% an starting annual Purchase on Payment the is date made that and each endingdeath; on the Owner’s date of MINUS Death Benefit’s value as of theIssue prior Date contract if anniversary the (or withdrawal iswithdrawals in in the excess first of contract the year). 5% Any proportional. dollar for dollar limit are If the Owner dies on or after the Death Benefit Target Date increased by total Purchase Payments (including any Credits since there will be fewer contractbenefit anniversaries target before date the is death reached. Value Death Benefit is calculated. Combination 5% Roll-up and HighestValue Anniversary Death Benefit If an Annuity has one Owner,the the time Owner the must Combination be 5% age Roll-up 79Benefit and or is HAV less purchased. Optional at If Death an AnnuityOwner has must joint be Owners, age the 79 oldest orentity, less. the If Annuitant the must Annuity be is age owned 79 by or an less. an Annuity are not available if5% you Roll-up elect and the HAV Combination Death Benefit.you If must you allocate elect your this Account benefit, Valuethe in then accordance permitted with and available option(s).reserve In the addition, right we to require yoution to model(s) use if certain you asset elect alloca- this Death Benefit. Calculation of the Combination 5% Roll-upAnniversary and Value Highest Death Benefit The Combination 5% Roll-up and HAVgreatest Death of Benefit equals the 1. the basic2. Death Benefit described above; the and Highest Anniversary Value Death Benefit described 3. 5% Roll-up described below. occurs before or after the Death Benefit Target Date. 5% Roll up is equal to: • all Purchase Payments (including any Credits applied to such • the sum of all withdrawals, dollar for dollar up to 5% of the the 5% Roll-up is equal to: • the 5% Roll-up value as of the Death Benefit Target Date , , the continued plus the sum of all Purchase Paymentsapplied (including to any such Credits Purchase Payments more thanprior twelve to (12) date months of death in theproportional case withdrawals of since XT6) the less Death the Benefit sum Target of Date. all Please refer to the definition of Death Benefit Target Date The amount determined by this calculation is If the Owner dies before the Death Benefit Target Date If the Owner dies on or after the Death Benefit Target Date The Highest Anniversary Value Death Benefitabove described is currently being offered inwhere those we jurisdictions have received regulatory approval.terms Certain and conditions may differ betweenonce jurisdictions approved. The Highest Anniversary ValueBenefit Death is not available if you5% elect Roll-up the and “Combination Highest Anniversary Value”“Highest or Daily the Value “ Death Benefit.XT6, With APEX respect II to and ASL II,description please of see the Appendix Guaranteed E Minimum for Death a offered Benefit before November 18, 2002 inwhere those we jurisdictions received regulatory approval. below. This death benefit may notwhere be the an Owner’s appropriate age feature is nearBenefit the Target age Date. specified This in is the because Death same the potential benefit for may growth not as have it the be otherwise fewer would, contract since anniversaries there before will thedate death is benefit reached. target The death benefitbenefit target is date earlier under than this the death deathCombination benefit 5% target Roll-up date and under Highest the AnniversaryBenefit Value for Death Owners who are ageissued, 76 which or may older result when in an a Annuity lower is value on the death benefit, increased by any Purchase Payments receivedOwner’s after date the of death and decreasedwithdrawals by since any such proportional date. 2. the Highest Anniversary Value on the Death Benefit Target Date Calculation of Highest Anniversary ValueBenefit Death The HAV Death Benefit depends onor whether after death the occurs Death before Benefit Target Date. Death Benefit equals the greater of: 1. the basic2. Death Benefit described above; the and Highest Anniversary Value as of the Owner’sthe date Death of Benefit death. equals the greater1. of: the basic Death Benefit described above; and Death Benefit

AMERICAN SKANDIA ANNUITIES PROSPECTUS 88 AMERICAN SKANDIA ANNUITIES PROSPECTUS 89 equals the highest of all are determined by calculating the is the Account Value as of each Highest Anniversary Value Anniversary Value If you elect this benefit, you must allocate your The HDV Death Benefit depends on whether death occurs If the Owner dies before the Death Benefit Target Date, the the oldest of either joint Ownerowned, or or the five Annuitant, years if after entity the Issue Date of an Annuity. previous “Anniversary Values” less proportional withdrawals since such anniversary and plus any(including Purchase any Payments Credits applied to suchmore Purchase than Payments twelve (12) months priorcase to of the XT6) date since of such death anniversary. in the anniversary of the Issue Date ofValue an on Annuity. the The Issue Anniversary Date is(including equal any to Credits your applied Purchase to Payment. suchmore Purchase than Payments twelve (12) months priorcase to of the XT6) date of death inProportional the withdrawals percentage of your Account Value thatrepresented each when prior withdrawn. withdrawal Proportional withdrawals result in a reduction to theRoll-up Highest value Anniversary by Value reducing or such 5% valueas in the the Account same Value proportion was reducedthe by date the the withdrawal withdrawal as occurred. of ForHighest example, Anniversary if Value your or 5% Roll-upand value you is subsequently $125,000 withdraw $10,000 atAccount a Value time is when equal your to $100,000calculating (a the 10% optional reduction), Death when Benefit weHighest will Anniversary reduce Value your ($ 125,000) by 10% or $12,500. If an Annuity has one Owner,less the at Owner the must time be the age Highest 79elected. Daily or If Value an Death Annuity Benefit has is jointbe Owners, age the 79 older or Owner less. must IfOwner there refers are to joint the Owners, first death to ofAnnuity die the is of owned the by joint an Owners. entity, Ifor the an less Annuitant and must death be of age the 79 Annuitant. Owner refers to the death of the Account Value in accordance with theand then available permitted option(s) with this benefit. before or after the Death Benefit Target Date. Death Benefit equals the greater of: • The • The • Highest Daily Value Death Benefit (“HDV”) birthday of the current Owner, for the Combination 5% for the Highest Anniversary th birthday of the current Owner, the oldest of either th Death Benefit Target Date Death Benefit Target Date

Roll-up and HAV Death Benefit isanniversary the on later or of after the the contract 80 joint Owner or the Annuitant, if entity owned. Value Death Benefit is the contractthe anniversary 80 on or after See Appendix B for examples of how the Combination 5% applied to such Purchase Payments more(12) than months twelve prior to date ofafter death the in Death the Benefit case Target of Date; XT6)MINUS made proportionally. In the case of XT6, as indicated, the amounts calcu-

The “Combination 5% Roll-up and HighestValue” Anniversary Death Benefit described above isbeing currently offered in those jurisdictions wherereceived we regulatory have approval. Certain terms and conditions may differ between jurisdictions once approved. The “Combination 5% Roll-up andAnniversary Highest Value” Death Benefit is notelect available any if other you optional Death Benefit.XT6, In APEX the II case and of ASL II,description please of see the Appendix Guaranteed E Minimum for Death a offered Benefit before November 18, 2002 inwhere those we jurisdictions received regulatory approval.

• The • The Anniversary Value Death Benefit: Benefit and the Combination 5% Roll-up and Highest Key Terms Used with the Highest Anniversary Value Death lated. Roll-up and Highest Anniversary Value Death Benefit is calcu- Target Date is reached. fewer Annuity anniversaries before the Death Benefit tial for growth as it otherwise would, since there will be This is because the benefit may not have the same poten- near the age specified in the Death Benefit Target Date. not be an appropriate feature where the Owner’s age is Death Benefit Target Date below. This Death Benefit may certain circumstances. Please refer to the definitions of Benefit Target Date) may be reduced by any Credits under • the sum of all withdrawals which reduce the 5% Roll-up lated in Items 1, 2 and 3 above (before, on or after the Death Proportional withdrawals are determined by calculatingpercentage the of your Account Value thatrepresented each when prior withdrawn. withdrawal Proportional withdrawals result in a reduction to thesuch Highest value Daily in Value the by same reducing proportionreduced as by the the Account withdrawal Value as was ofoccurred. the For date example, the if withdrawal your Highestand Daily you Value subsequently is withdraw $125,000 $10,000 atAccount a Value time is when equal your to $100,000calculating (a the 10% optional reduction), Death when Benefit weHighest will Daily reduce Value your ($125,000) by 10% or $12,500. • Please see Appendix B to thisexample prospectus of for how a the hypothetical HDV Death Benefit is calculated. Annuities with Joint Owners For Annuities with joint owners, theas Death shown Benefits above are except calculated that theOwners age is of used the to oldest determine of the theNOTE: Death joint If Benefit you Target and Date. your spousepay own the your Death Annuity Benefit jointly, to we the will Beneficiary Beneficiary. is If the the surviving sole spouse, primary thenelect the to surviving assume spouse ownership can of yourAnnuity Annuity instead and of continue receiving the the Death Benefit. Annuities owned by entities For Annuities owned by an entity,lated the as Death shown Benefits above are except calcu- thatused the to age determine of the the Death Annuitant Benefit is Death Target Benefit Date. is Payment based of on the theContingent death Annuitant, of if the applicable). Annuitant (or Can I terminate the optionaloptional Death Death Benefits? Benefits Do terminate the undercircumstances? other You can terminate the Enhanced BeneficiaryBenefit Protection and Death the Highest Anniversary Valuetime. Death The Benefit “Combination at 5% any Roll-up andthe HAV HDV Death Death Benefit” Benefit and may notoptional be Death terminated Benefits once will elected. terminate The automaticallyAnnuity on Date. the We may also terminateif any necessary optional to Death comply Benefit with ourapplicable interpretation regulations. of the Code and What are the charges forBenefits? the optional Death We deduct a charge equal tonet 0.25% assets per of year the of Sub-accounts the for averagesary each daily Value of Death the Benefit Highest and Anniver- the Enhanced Beneficiary Protection continued for the Highest Daily Value equals the highest of all previous is the Account Value as of the end of each birthday of the current Owner, or the older of th Credits applied to such Purchase Paymentstwelve more (12) than months prior to theof date XT6); of and death in the case of all Purchase Payments (including anyto Credits such applied Purchase Payments more than(12) twelve months prior to the dateless of the death sum in of the all case proportional ofDeath withdrawals XT6) Benefit since Target the Date. Highest Daily Value Daily Value Death Benefit Target Date either the joint Owner or thefive Annuitant, years if after entity the owned, Issue or Date of an Annuity. Valuation Day. The Daily Value onyour the Purchase Issue Payment Date (plus is associated equal Credits to than applied twelve more (12) months prior toof the XT6). date of death in the case Death Benefit is the later ofafter an the Annuity 80 anniversary on or “Daily Values” less proportional withdrawals sinceand such plus date any Purchase Payments (plusthe associated case Credits of in XT6) since such date. 1. the basic Death Benefit described above (including any 2. the HDVIf as the of Owner the dies Owner’s on date or of after death. the Death Benefit Target Date, 1. the basic2. Death Benefit described above; the and HDV on the Death Benefit Target Date plus the sum The amount determined by this calculation is increased by The Highest Daily Value Death Benefitis described currently above being offered in thosewe jurisdictions have where received regulatory approval. Certainand terms conditions may differ between jurisdictionsapproved. once The Highest Daily Value Deathavailable Benefit if is you not elect the GuaranteedGuaranteed Return Return Option, Option Plus, Spousal Lifetimethe Five, “Combination 5% Roll-up and HighestValue” Anniversary Death Benefit, or the HighestDeath Anniversary Benefit. Value • The • The Key Terms Used with theBenefit: Highest Daily Value Death • The the Death Benefit equals the greater of: any Purchase Payments received after theand Owner’s decreased date by of any death proportional withdrawals since such date. Death Benefit

AMERICAN SKANDIA ANNUITIES PROSPECTUS 90 AMERICAN SKANDIA ANNUITIES PROSPECTUS 91 date of death; or expectancy of the Beneficiary or overciary. the Payments life under of this the option Benefi- mustof begin the within date one of year death. Unless you have made an election prior to Death Benefit (including any amounts payable under anythen Optional in Death effect). Benefit The effective datepayments must begin. occur There before can annuity only beAnnuity one Rewards effective Death date Benefit for enhancement. the Theretional is charge no for addi- electing the Annuityenhancement. Rewards Death Benefit PAYMENT OF DEATH BENEFITS Payment of Death Benefit toExcept Beneficiary in the case of athe spousal event assumption of as your described death, below, the in • Death Benefit must be distributed: as a lump sum amount at any time• within five (5) years as of a the series of annuity payments not extending beyond the life proceeds becoming due, a Beneficiary canDeath elect Benefit to proceeds receive as the a series(annuity of payment fixed options annuity 1–4) payments or aspayments a (annuity series payment of options variable 1–3 annuity orsection 5 entitled and “What 6). Types See of the Annuity Options are Available.” Spousal Beneficiary — Assumption ofYou Annuity may name your spouse asspouse your own Beneficiary. your If Annuity you jointly, and we your Beneficiary assume will that be the the sole surviving primary spousealternative unless Beneficiary you designation. elect Unless an you electnative an Beneficiary alter- designation, the spouse Beneficiaryto may assume elect ownership of the AnnuityBenefit instead payment. of Any taking Death the Benefit Death (includingBenefits) any that optional would Death have been payablebecome to the the new Beneficiary Account will Value asproof of of the death date and we any receive required due As proof of of the a date spousal the relationship. assumptionwill is have effective, all the the surviving rights spouse andthe benefits Annuity that to would a be new available purchaser under purposes of of the determining same any attained future age. Death For spouse, Benefit the for new the Account surviving Value willPurchase be Payment. considered No as CDSC the will initial applyHowever, to any the additional new Purchase Account Payments Value. applieddate after the the assumption is effective willthe be Annuity, subject including to any all CDSC provisions that of Purchase may Payments. apply to the additional tive following the effec * ented when withdrawn. For example, a ned by calculating the percentage of the

Annuity Rewards is not available under ASL II. Value in any Fixed Allocations asbenefit of the effective date of the MINUS any proportional withdrawals date of the benefit PLUS any additional Purchase Payments appliedAnnuity to following your the effective date ofThe the Annuity benefit. Rewards Death Benefit enhancement does not Please refer to the section entitled “Tax Considerations” for

that would be payable to the Beneficiary under the Death Benefit Rewards benefit is effective, must be greater than the amount Annuity. However, the Account Value on the date that the Annuity * “Proportional withdrawals” are determi ment when there is no longer a CDSC associated with your Owners can elect the Annuity Rewards Death Benefit enhance- Who is eligible for the Annuity Rewards benefit? Account Value that each withdrawal repres receive the higher amount. the date the Death Benefit is calculated, your Beneficiary will enhanced Death Benefit under the Annuity Rewards Benefit on withdrawal of 50% of youramount Account payable Value under would the be Death Benefit. treated as a 50% reduction in the Optional Death Benefits you purchase is greater than the amount payable under your Annuity’s basic Death Benefit or any Death Benefits available under an Annuity. If the Death Benefit • your Account Value in the Sub-accounts plus the Interim • • affect the calculation of the basic Death Benefit or any Optional Skandia guarantees that the Death Benefit will not be less than: date of the benefit. Under the Annuity Rewards Benefit, American will not receive less than an Annuity’s value as of the effective enhancement to their current Death Benefit so their Beneficiaries any market gains since the Issue Date of their Annuity as an The Annuity Rewards Benefit offers Owners the ability to capture APEX II and XT6? What is the Annuity Rewards Benefit in ASAP III, AMERICAN SKANDIA’S ANNUITY REWARDS additional considerations in relation to the optional Death Benefit. daily against your Account Value allocated to the Sub-accounts. optional Death Benefits. The additional annual charge is deducted Skandia for providing increased insurance protection under the charge for each of these benefits to compensate American HAV Death Benefit” and the HDV Death Benefit. We deduct the of the Sub-accounts for each of the “Combination 5% Roll-up and Death Benefit and 0.50% per year of the average daily net assets Upon election of this Qualified Beneficiary Continuation Owner’s name, for the benefit of the Beneficiary. daily against the average daily assetsSub-accounts. allocated to the (including any optional Death Benefit) thatpayable would to have the been Beneficiary if theydistribution. had taken a lump sum subject to the same limitations andto restrictions the that Owner, applied except that thethose Sub-accounts offered offered under will the be Qualified Beneficiaryoption Continuation at the time the option is elected. Qualified Beneficiary Continuation option at theoption time is the elected. Annuity. Qualified Beneficiary Continuation option at theelection. time of elected by the Owner will no longer apply to the Beneficiary. the Account Value at any timeapplicable without CDSC. application of any Value will be paid in athe lump Beneficiary. sum to the person(s) named by according to the Minimum Distribution rules describedYour above. Beneficiary will be provided with a prospectus and option: • the Owner’s Annuity contract will be continued in• the the Beneficiary will be charged at an amount equal to 1.40% • the Account Value will be equal to any Death Benefit • the Beneficiary may request transfers among Sub-accounts, • the Fixed Allocations will be those offered under the • no additional Purchase Payments can be applied to• the other optional Benefits will be those offered under the • the basic Death Benefit and any optional Death• Benefits the Beneficiary can request a withdrawal of all or a portion of • upon the death of the Beneficiary, any remaining Account • all amounts in the Annuity must be paid out to the Beneficiary settlement option that will describe thisshe option elects at this the option. time Please he contact or additional American information Skandia on for the availability, restrictionstations and that limi- will apply to aciary Beneficiary Continuation under option. the Qualified Benefi- Are there any exceptions toDeath these Benefit? rules for payingYes, the there are exceptions that applyBenefit no is matter calculated. how There your are Death exceptions to the Death Benefit if of the year st the date before continued , which ever is later. of the year following the year 2 ⁄ st 1 of the year in which the deceased st the date Minimum Distributions must the date Minimum Distributions must after before following the year of death). However,Beneficiary, if the the Death spouse Benefit is can the belife paid expectancy out of over the the spouse life with or no such earlier payments than beginning December 31 would have reached age 70 of death or December 31 begin under the Code, the Deathleast Benefit as must rapidly be as paid under out the at A method Beneficiary then has in the effect. flexibility to take out more each year For a Roth IRA, if death occurs before the entire interest is See the section entitled “Managing Your Annuity — Spousal begin under the Code, the Deatheither Benefit a can lump be sum, paid within out five in or years over from the the life date or of life death, ciary expectancy (as of long the as designated payments Benefi- begin by December 31 Minimum Distributions must begin under the Code. • If death occurs than required under the Minimum Distributiondrawn, rules. amounts Until in with- an IRA, 403(b)continue or to other be “qualified tax investment” deferred. Amountsincluding withdrawn amounts each that year, are required toMinimum be Distribution withdrawn rules, under are the subject toconsult tax. a You professional may tax wish advisor to forular tax situation. advice as to your partic- distributed, the Death Benefit must berules distributed applied under to the IRAs same where death occurs Contingent Annuitant” for a discussion ofspousal the Contingent treatment Annuitant of in a the caseAnnuitant of in the an death entity of owned the Annuity. Qualified Beneficiary Continuation Option The Code provides for alternative deathwhen benefit an payment Annuity options is used asinvestment” an that IRA, requires 403(b) Minimum or Distributions. other Upon “qualified Owner’s the death under an IRA, 403(b)investment”, or a other Beneficiary “qualified may generally electAnnuity to and continue receive the Minimum Distributions underinstead the of Annuity receiving the death benefitavailable in payment a options single will payment. depend The ondied whether on the or Owner before the datereceiving he Minimum or Distributions she under was the required Code toBeneficiary and begin is whether the the surviving spouse. • If death occurs Death Benefit

AMERICAN SKANDIA ANNUITIES PROSPECTUS 92 AMERICAN SKANDIA ANNUITIES PROSPECTUS 93 During the period from the date of death until we

Each Beneficiary must make an election as to the method

decree of a court of competentdeath jurisdiction or as other to satisfactory the proof finding of of “due death. proof Upon of our death” receipt we of automaticallyto transfer the the AST Death Money Benefit Market Sub-accountthe until universe we of further eligible determine Beneficiaries. OnceBeneficiaries the has universe been of determined eligible each eligibleallocate Beneficiary his may or her eligible shareeligible of annuity the payment Death option. Benefit to an they wish to receive their portionelection of of the a Death Death Benefit. Benefit Absent payment an can method, be no paid Death to Benefit the Beneficiary.edgment We of may all require named written Beneficiaries acknowl- beforeBenefit. we can pay the Death receive all required paper work, theBenefit amount may of be the subject Death to market fluctuations.

include a certified copy of a death certificate, a certified copy of a Death Benefit to all Beneficiaries. “Due proof of death” may sentations we require to determine the proper payment of the determine the method of payment and any other written repre- receive “due proof of death”, any instructions we require to We determine the amount of the Death Benefit as of the date we When do you determine the Death Benefit? person had been an Owner or Annuitant on the Issue Date. period is completed, the Death Benefit is the same as if this first became Owner or Annuitant. After the two-year suspension will be suspended for a two-year period from the date he or she Death Benefit (including any optional Death Benefit) that applies or Annuitant due to the prior Owner’s or Annuitant’s death. Any Date (or within 60 days thereafter) and did not become the Owner the decedent was not the Owner or Annuitant as of the Issue Example Assume you allocate $5,000 to aDay Sub-account. you On make the the Valuation allocation, thebuys Unit 337.154 Price Units is of $14.83. the Your Sub-account. $5,000 wish Assume to that transfer later, $3,000 you of yourSub-account Account and Value into out another of Sub-account. that Onyou the request Valuation the Day transfer, the UnitSub-account Price has of increased the to original $16.79. To178.677 transfer Units $3,000, at we the sell current UnitWe Price, then leaving buy you $3,000 158.477 of Units. UnitsPrice of of the $17.83. new You Sub-account would at then theSub-account. have Unit 168.255 Units of the new HOW DO YOU VALUE FIXEDDuring ALLOCATIONS? the Guarantee Period, we useValue. the The concept Interim of Value an can Interim beequal calculated to on the any initial day value and allocated is interest to credited a to Fixed a Allocation Fixed plus Allocation all The as Interim of Value the does date not calculated. includeValue the Adjustment. impact If of you any made Market anya transfers Fixed or Allocation, withdrawals the from Interim Valuethose will amounts reflect and the any withdrawal interest of creditedthey to were those withdrawn. amounts To before determine theAllocation Account on Value any of day a more Fixed thanDate, 30 we days multiply prior the to Account its Value Maturity the of Market the Value Fixed Adjustment Allocation factor. times WHEN DO YOU PROCESS ANDTRANSACTIONS? VALUE American Skandia is generally open toactions process on financial those trans- days that theis New open York for Stock trading. Exchange There (NYSE) maydoes be not circumstances open where on the a NYSE regularlyan scheduled earlier date time or than time scheduled or (normally closestransactions 4:00 at requested p.m. before EST). Financial the close ofour the requirements NYSE will which be meet processed accordingdetermined to following the the value close next of business.requested Financial on transactions a non-business day orwill after be the processed close based of on the the NYSE Valuation value Day. next There computed may on be the circumstances next closing when time the of opening the or NYSE isexchanges, different such than as other NASDAQ major or stock theUnder American such Stock circumstances, Exchange. the closing timeused of when the valuing NYSE and will processing be transactions. Each Valuation Day, we determine the price for a Unit of each HOW IS MY ACCOUNT VALUEDuring DETERMINED? the accumulation period, your AnnuityValue. has The an Account Account Value is determinedSub-account separately allocation for and each for each FixedValue Allocation. is The the Account sum of thethe values value of of each each Sub-account Fixed allocation Allocation. and reflect The any Account CDSC Value that does may not applyWith to respect a to withdrawal ASAP or III surrender. andany APEX Loyalty II, Credit the we Account apply. Value With includes Value respect includes to any XT6, Credits the we Account appliedwhich to we your are Purchase entitled Payments to takeWhen back determining under the certain Account circumstances. Value onprior a to day a more Fixed than Allocation’s 30 Maturity days include Date, any the Market Account Value Value Adjustment may thatAllocation would (if apply withdrawn to or a transferred) Fixed on that day. WHAT IS THE SURRENDER VALUEMY OF ANNUITY? The Surrender Value of your Annuityon is any the day value during available the to accumulation you defined period. under The “Glossary Surrender of Value Terms” is above. HOW AND WHEN DO YOUSUB-ACCOUNTS? VALUE THE When you allocate Account Value topurchasing a units Sub-account, of you the are Sub-account. Eachexclusively Sub-account in invests shares of an underlyingUnits Portfolio. fluctuates The with value the of market the fluctuationsvalue of of the the Portfolios. Units The also reflectsCharge, the the daily Distribution accrual Charge for (if the applicable), Insurance one and or if more you optional elected benefits whosedaily, annual the charge additional is charge deducted made forseveral such different benefits. Unit There Prices may for be eachInsurance Sub-account Charge, to any reflect Distribution the Charge andoptional the benefits. charges The for Unit any Price forbased the on Units the you total purchase charges will for be Annuity. the See benefits the that section apply entitled to “What your When Happens There to is My a Units Change indetailed Daily discussion Asset-Based of Charges?” how for Units a arereflect purchased changes and in redeemed the to daily charges that apply to your Annuity. Sub-account, called the “Unit Price.” Thedetermining Unit the Price value is of used transactions for involvingSub-accounts. Units We of determine the the number oftransaction Units by involved dividing in the any dollar valueUnit of Price the of transaction the by Sub-account the as of the Valuation Day. Valuing Your Investment

AMERICAN SKANDIA ANNUITIES PROSPECTUS 94 AMERICAN SKANDIA ANNUITIES PROSPECTUS 95 hour 2 / 1 Generally, “Unscheduled” transactions Death Benefit claims require our review and Unscheduled Transactions: Death Benefits: Medically-related Surrenders & Death Benefits: Transactions in ProFunds VP Sub-accounts: systematic investments, required minimum distributions, substantially equal periodic payments under Sectionof 72(t) the or Code, 72(q) or annuity payments.processed Scheduled and transactions valued are as of thethe date scheduled they day are is scheduled, not unless aaction business will day. be In processed that and case, valued theunless on trans- (with the respect next to business required day, minimumsubstantially distributions, equal periodic payments under Sectionof 72(t) the or Code, 72(q) systematic withdrawals andthe annuity next payments business only), day falls inwhich the case subsequent the calendar transaction year, will in beprior processed business and day. valued on the include any other non-scheduled transfers andWithdrawals requests or for Free Partial Withdrawals or Surrenders.transactions Unscheduled are processed and valued asreceive of the the request Valuation at Day our we Officeinformation. and have all of the required evaluation before processing. We price suchthe transactions date as we of receive at ourrequire office for all such supporting transactions documentation and we that are satisfactory to us. Medically-related surrender requests and Death Benefitrequire claims our review and evaluation beforesuch processing. transactions We as price of the datesupporting we documentation receive we at require our for Office such all that transactions are and satisfactory to us. purchase or redemption orders or transferreceived requests by must us be by no lateressed than on the the close current of Valuation the Day. NYSEredemption However, to order any be or purchase proc- transfer or request involvingSub-accounts the must ProFunds be VP received by usany no announced later closing than of one the hour applicable prior(generally, securities to 3:00 exchange p.m. Eastern time) toValuation be Day. processed The on “cut-off” the time current forinvolving such a financial ProFunds transactions VP Sub-account will be extended to prior to any announced closing (generally,for 3:30 transactions p.m. submitted Eastern electronically time) through Americandia’s Skan- Internet website (www.americans-kandia.prudential.com). You cannot request a transaction involvingredemption the or purchase, transfer of units inSub-accounts one between of the the applicable ProFunds “cut-off” VP time and 4:00 p.m. We will apply any addi- We are required to allocate Scheduled transactions include

Scheduled Transactions: Additional Purchase Payments: securities held in the separate account impractical; or for the protection of security holders. Initial Purchase Payments: American Skandia will also not process financial transactions The NYSE is closed on the following nationally recognized There may be circumstances where the NYSE is open,

Payment at our office with satisfactory allocation instructions. to XT6) on the Valuation Day that we receive the Purchase allocation program, auto-rebalancing, systematic withdrawals, tional Purchase Payments (and any associated Credit with respect transfers made in connection with dollar cost averaging, the asset invested. are trying to obtain the required information, your money is not Annuity within two (2) business days. During any period that we information, we will invest the Purchase Payment and issue an gather the required information. Once we obtain the required Payment (and any associated Credit with respect to XT6) while we unless you specifically consent to our retaining the Purchase are required to return the Purchase Payment to you at that time, all of our required information within five (5) business days, we tive to obtain all of our requirements. If we are unable to obtain Purchase Payment while we try to reach you or your representa- information to allow us to issue your Annuity, we may retain the office to issue an Annuity. If we do not have all the required (2) business days after we receive all of our requirements at our your initial Purchase Payment to the Sub-accounts within two

• the SEC, by order, permits the suspension or postponement • an emergency exists making redemption or valuation of • trading on the NYSE is restricted; that: involving purchase or redemption orders or transfers on any day

redemption orders. not process any financial transactions involving purchase or Labor Day, Thanksgiving, and Christmas. On those dates, we will ington’s Birthday, Good Friday, Memorial Day, Independence Day, holidays: New Year’s Day, Martin Luther King, Jr. Day, Wash- Account Value, or make a purchase or redemption request. changes in the Unit Values, but you may not be able to transfer those circumstances, your Account Value may fluctuate based on our business processing capabilities may be restricted. Under circumstances beyond our control, our offices may be closed or however, due to inclement weather, natural disaster or other Except for the Guaran- Termination of Optional Benefits: value of Units that reflect theoptional Insurance benefits Charge that and you any have other elected. teed Minimum Income Benefit, the “CombinationHighest 5% Anniversary Roll-up Value and Death Benefit” andValue the Death Highest Benefit, Daily which cannot beonce terminated elected, by if the any owner optional benefitdeduct terminates, the we charge will we no apply longer toCertain purchase optional the benefits optional may benefit. be addedyour after Annuity. you On have the purchased date aan charge optional no benefit longer begins applies to or be abecome deducted, charge subject your for to Annuity a will different dailychange asset-based may charge. result This in the numberand of the Units value attributed of to those your Units Annuity change; being however, different the than adjustment it in was the beforePrice number the will of not Units affect and your Unit Accountcharges Value that (although are the deducted change will in affect your Account Value). continued At the The Beginning on that date, your adjustment in the number of Unitsaffect and your Unit Account Price Value. will not Account Value will be determined based on the change in the end of the Period during whichyour the Annuity Distribution will Charge become applies, subject tocharge. a We different will daily process asset-based a transactionallocated where to your the Account Sub-accounts Value will beof used the to Sub-accounts purchase that new reflect Units thecharge Insurance for Charge any (and optional the benefits youDistribution have Charge. elected) The but number not of the UnitsAnnuity attributed will to be your decreased and theSub-accounts Unit in Price which of you each invested unit will of be the increased. Transactions received after 4:00 p.m. willus be on treated the as next received Valuation by Day. WHAT HAPPENS TO MY UNITSCHANGE WHEN IN THERE DAILY IS ASSET-BASED A CHARGES? Distribution Charge Applicable to ASAP III and XT6: Valuing Your Investment

AMERICAN SKANDIA ANNUITIES PROSPECTUS 96 AMERICAN SKANDIA ANNUITIES PROSPECTUS 97 , the taxable 2 ⁄ 1 If the IRS determines that the charges for one or more bene- If you choose to defer the Annuity Date beyond the default If you assign or pledge all or part of your contract as If you transfer your contract for less than full consideration, After the full amount of your Purchase Payments have been purposes as a partial withdrawal fromthe the case, contract. the If charge this for were thisdrawal benefit and could treated be as deemed taxable a to with- the the contract. extent Additionally, there for are owners earnings under in age 59 income attributable to the charge forto the a benefit tax could penalty. be subject fits under the contract are taxablesurviving withdrawals, owner then will the be sole provided or withavailable a alternatives notice regarding from these us benefits. describing date for your Annuity, the IRSbe may an not annuity consider under your the contract tax to and law. When For Do more I information, Choose see the “How Annuity Payment Option?”. Taxes on Withdrawals and Surrender If you make a withdrawal fromannuity your payments contract begin, or the surrender amount it you before ordinary receive income, will rather be than taxed as as returnall of gain Purchase has Payments, been until withdrawn. Youwithdrawals will from generally the be contract taxed while on you any withdrawal are is alive paid even to if someone the else. collateral for a loan, the parta assigned withdrawal. generally will be treated as such as by gift, you willThis trigger rule tax does on not any apply gain if inor you the under transfer contract. most the circumstances contract if to you yourto transfer spouse divorce. the contract incident Taxes on Annuity Payments A portion of each annuity paymentpartial you return receive of will your be Purchase treated Payments asThe and a remaining will portion not will be be taxed. taxedthe as nontaxable ordinary portion income. is Generally, determined bypayment multiplying you the receive annuity by a fraction,Purchase the Payments numerator (less of any which amounts is previously your tax-free) received and the denominator of whichpayments is under the the total contract. expected recovered tax-free, the full amount ofbe the taxable. annuity If payments annuity will payments stopannuitant due before to the the full death amount of of the been your recovered, Purchase a Payments tax have deduction mayunrecovered be amount. allowed for the

It is possible that the Internal Revenue Service (IRS) would Generally, annuity contracts issued by the same company Each Annuity may also be purchased as a non-qualified

under the contract should be treated for federal income tax assert that some or all of the charges for the optional benefits amount subject to tax under the rules described below. treated as one annuity contract for purposes of determining the (and affiliates) to you during the same calendar year must be you receive money under the contract. Accordingly, as a general rule, you should not pay any tax until We believe each Annuity is an annuity contract for tax purposes. Taxes Payable by You PLANS) ASSOCIATED WITH TAX-FAVORED RETIREMENT CONTRACTS OWNED BY INDIVIDUALS (NOT trustee or custodian. Roth IRAs, as applicable, are the responsibility of the applicable accordance with the laws and regulations for 401(a) plans, IRAs or The terms and administration of the trust or custodial account in which can hold other permissible assets other than the annuity. annuity by a 401(a) trust or custodial IRA or Roth IRA account, payments. contract, on an after-tax basis less any withdrawals of such you pay into your contract, or into annuities exchanged for your not associated with a tax-favored retirement plan is the amount cost basis in your contract. Generally, your cost basis in a contract advice. References to Purchase Payments below relates to your consult with a qualified tax advisor for complete information and information provided is not intended as tax advice. You should a woman and a “spouse” as a person of the opposite sex). The (which defines a “marriage” as a legal union between a man and accords with our understanding of the Defense of Marriage Act administration of such spousal rights and related tax reporting rights under the contract and under tax-qualified plans. Our change. The discussion includes a description of certain spousal laws). It is based on current law and interpretations, which may and describes only federal income tax law (not state or other tax categories of contracts below. The discussion is general in nature retirement plan. We discuss the tax considerations for these an agent for a natural person), or (ii) held under a tax-favored contracts held by a non-natural person, such as a trust acting as and not associated with a tax-favored retirement plan (including depending on whether the contract is (i) owned by an individual The tax considerations associated with each Annuity vary Tax Considerations There may be the beneficiary is taxed on earningsthe in beneficiary the is contract. taxed as amounts are withdrawn the beneficiary is taxed on each payment (part will Generally, the same tax rules described above would also Tax consequences to the beneficiary vary among the Death Choice 1: Choice 2: (in this case earnings are treatedChoice as 3: being distributed first). be treated as earnings and part as return of premiums). taxable distributions to the extent ofas any subjecting gain the distributed taxable as portion well oftax the penalty. distribution We to strongly the urge 10% youthis to type discuss with any your transaction tax of advisoraction. before proceeding with the trans- Taxes Payable by Beneficiaries The Death Benefit options are subjectthe to distribution income exceeds tax the to cost the basis extent of in the the Death contract. Benefit, The as value determinedincluded under in federal the law, owner’s is estate. also apply to amounts received by youroption beneficiary. other Choosing than any a lump sumCertain Death minimum Benefit distribution may requirements defer apply taxes. uponas your discussed death, further below. Benefit payment options. • • • Considerations for Contingent Annuitants: adverse tax consequences if a ContingentAnnuitant Annuitant when succeeds an an Annuity is ownedexempt by nor a qualifies trust for that preferred is treatment neithersections under tax of certain the Code. In general,indefinite the deferral Code of is tax. designed Continuing to the prevent naming benefit one of or tax more deferral Contingent by Annuitantsowned when by an a Annuity non-qualified is trust mightextend be the deemed tax an deferral attempt for to antax indefinite treatment period. may Therefore, depend adverse on thenamed terms as of Contingent the Annuitant, trust, as who well is and as circumstances. the You particular should facts consult yournaming tax a advisor Contingent before Annuitant if yousuch expect a to fashion. use an Annuity in Reporting and Withholding on Distributions Taxable amounts distributed from an Annuitysubject contract to are federal and state incomeIn tax general, reporting we and will withholding. withhold federalportion income of tax such from distribution the based taxable onthe the case type of of an distribution. annuity In orwithhold similar as periodic if payment, you we are will aunless married you individual designate with a 3 different exemptions withholding status. In the case of or die; 2 ⁄ 1 continued or 5 years. 2 ⁄ 1 withdrawals. The IRS has reserved the 2 ⁄ 1 Modification of payments during that timein period retroactive will application result of the 10% tax penalty.); or contract (in which annuity payments beginpurchase). within one year of Partial surrenders may be treated in the same way as tax-free disabled; substantially equal payments not less frequentlyally than (Please annu- note that substantially equalcontinue payments until must the later of reaching age 59 right to treat transactions it considersthis abusive favorable as partial ineligible 1035 for exchange treatment.what We transactions do may not be know considered abusive.not For know example how we the do IRS maytions view after early a withdrawals partial or exchange. annuitiza- InIRS addition, will it treat is a unclear partial how exchange the ment, from or a annuity life contract insurance, into endow- andate immediate of annuity. this As prospectus, of we the willfrom accept a a non-qualified partial annuity 1035 into exchange anfree” immediate exchange annuity for as future a tax “tax- reportingextent purposes, that except we, to as the a reportingwe and would withholding be agent, expected believe to that deemHowever, the some transaction insurance to companies be may abusive. notpartial recognize surrenders these as tax-free exchanges and may report them as • the amount received is paid under an immediate annuity Special Rules in Relation toUnder Tax-Free Section Exchanges 1035 Section 1035 of the Internal Revenue(Code) Code permits of certain 1986, tax-free as exchanges amended ofannuity a or life endowment insurance, contract for anpurchased annuity. through If a an tax-free Annuity exchange is ofor a endowment life contract insurance, that annuity was purchased1982, prior then to any August Purchase 14, Payments madeprior to to the August original 14, contract 1982 willcontract be prior treated to as that made date. to (See theStatement Federal new of Tax Additional Status Information.) section in the 1035 exchanges of entire contracts, thereforetaxation avoiding of current any gains in thepenalty contract on as pre-age well 59 as the 10% tax Tax Penalty on Withdrawals andAny Annuity taxable amount Payments you receive undersubject your to contract a may 10% be tax penalty.penalty Amounts if: are not subject to this• tax the amount• is paid on or the after amount you received reach is age attributable 59 to your becoming • generally the amount paid or received is in the form of Tax Considerations

AMERICAN SKANDIA ANNUITIES PROSPECTUS 98 AMERICAN SKANDIA ANNUITIES PROSPECTUS 99 We reserve the right to make any years younger than you or a grandchild. 2 ⁄ 1 If you die on or after the Annuity Date, the remaining portion If you die before the Annuity Date, the entire interest in the If an Annuity is payable to (or for the benefit of) your surviving Changes In Your Annuity. by an individual or as agent for an individual. containing purchase payments made before August 14, 1982. is either 37 Currently, an Annuity may be purchased for use in connection taking annuity payments under the contracttaking or annuity after payments you under start the contract. of the interest in the contractrapidly must as be under distributed the at method least of as date distribution of being death. used as of the contract must be distributed within 5death. years However, after if the a date periodic of paymentdesignated option beneficiary is and selected if by such your paymentsof begin your within death, 1 the year value ofthe the beneficiary’s contract life may or be a distributed period over life not expectancy. exceeding Your the designated beneficiary’s beneficiary iswhom the benefit person rights to under the contractand pass must by be reason a of natural death, personoption in based order on to life elect expectancy a or periodic a payment period exceeding five years. spouse, that portion of the contractspouse may as be the continued owner. with your changes we deem necessary to assurequalifies that as your an Annuity annuity contract forchanges tax will purposes. apply Any to such all contractnotice owners to and the you extent will feasible be under given the circumstances. Additional Information You should refer to the Statement• of Additional Information if: The contract is held by a corporation or• other entity instead of Your contract was issued in exchange for a• contract You transfer your contract to, or designate, a beneficiary who CONTRACTS HELD BY TAX-FAVORED PLANS The following discussion covers annuity contractstax-favored held retirement under plans. with individual retirement accounts and annuitiessubject (IRAs) to which Sections are 408(a) and 408(b)under of Section the 408A Code of and the Roth Code. IRAs purchased In for addition, use each in Annuity connection may with be Profit-sharing a plan corporate (subject Pension to or 401(a) of(also the known Code), as H.R. Keogh 10 Plans, plans subjectSheltered to Annuities 401(a) (subject of to the 403(b) Code), of Tax Tax the Deferred Code, Annuities also or known TDAs), as and Section 457 plans (subject the Upon your death, In order to qualify for the tax

Required Distributions Upon Your Death. Please refer to the Statement of Additional information for An additional requirement for qualification for the tax treat- Regardless of the amount withheld by us, you are liable for State income tax withholding rules vary and we will withhold

required distributions depend on whether you die before you start certain distributions must be made under the contract. The issues. further information on these Diversification and Investor Control required to comply with such guidelines if promulgated. including modifications to your Annuity or the investment options, offered pursuant to this Prospectus. We will take any action, guidelines may have on transfers between the investment options retroactive effect. It is also unclear what effect, if any, such whether such guidelines, if in fact promulgated, would have investments underlying such variable annuity. It is unclear if persons with ownership rights have excessive control over the variable annuity will not be treated as an annuity for tax purposes Treasury Department may promulgate guidelines under which a While we also believe these investor control rules will be met, be treated as the owner of the underlying assets for tax purposes. owner, must have sufficient control over the underlying assets to ment described above is that we, and not you as the contract will be met. according to certain rules. We believe these diversification rules Diversification And Investor Control. underlying the Sub-accounts of an Annuity must be diversified, Annuity Qualification rules applicable to annuity contracts described above, the assets taxes and potential liability if you fail to pay such taxes. regarding the payment of the correct amount of these income annuity distributions. You should consult with your tax advisor payment of federal and state income tax on the taxable portion of favored plans (for example, an IRA). refer to the discussion below regarding withholding rules for tax the United States and the nonresident alien’s country. Please alien based on the terms of an existing income tax treaty between different withholding rate may be applicable to a nonresident withhold income tax for nonresident aliens at a 30% rate. A apply to withholding for nonresident aliens, and we generally based on the rules of your State of residence. Special tax rules provide. election out of withholding must be made on forms that we generally elect not to have tax withheld from your payments. An all other distributions, we will withhold at a 10% rate. You may ; and 2 ⁄ 1 Contracts that are IRAs (or endorse- SEPs are a variation on a standard IRA, and contracts distribution requirements” described below. Usually, the full amount of any distribution from an IRA borrow against the value of an IRA; or SEPs. income any employer contributions made tobehalf the up SEP to on the your lesser ofyour (a) taxable $44,000 compensation in paid 2006 by or the (b) contributing 25% employer of Required Provisions. the contract (except in certain casesproperty involving under the a division decree of of divorce); maximum amount allowed by law, includingcontributions catch-up if applicable (which does notover include amounts); any roll- cannot be later than April 1stcalendar of year the you calendar turn year age after 70 the • Death and annuity payments must meet “minimum (including a distribution from this contract)is which taxable. is As not taxable a income, rollover thesethe distributions general are tax subject withholding to rules describedthis earlier. normal In tax addition liability, to you maydepending also on be your liable actions: for the following, • A 10%• “early distribution penalty” described Liability below; for “prohibited transactions” if you, for example, • Failure to take a minimum distribution also described below. issued to a SEP must satisfydescribed the under same IRAs general (above). requirements There are,ences: however, some differ- • If you participate in a SEP, you generally do not include in these distributions) if he or shedistribution. meets Once the you requirements buy for an Annuity,contributions you under can the make Annuity regular (to IRA theHowever, extent if permitted you by make law). such regularnote IRA that contributions, you you will should not beIRA,” able which to means treat that the you contract will astreatment not a if retain “conduit you possible subsequently favorable “roll tax over”originally the derived contract from funds a qualified retirementanother plan Section or 401(a) TDA plan into or TDA. ments that are part of thesions: contract) must contain certain provi- • You, as owner of the contract, must be the “annuitant” under • Your rights• as owner are non-forfeitable; You cannot• sell, assign or pledge The the annual contract; contribution you pay cannot be greater than the • The date on which required minimum distributions must begin continued . Because of the way each If you buy an Annuity for use as an IRA, we will provide you a The “rollover” rules under the Code are fairly technical; Contributions Limits/Rollovers Each Annuity may also be purchased as a non-qualified You should be aware that tax favored plans such as IRAs however, an individual (or his orgenerally her “roll surviving over” spouse) certain may distributions fromment tax plans favored (either retire- directly or within 60 days from the date of to 457 of the Code). Thissatisfied description the assumes requirements that for you eligibility have for these products. annuity by a 401(a) trust orwhich custodial can IRA hold or other Roth permissible IRA assets account, The other terms than and the administration annuity. of theaccordance trust with or the custodial laws account and in regulationsRoth for IRAs, 401(a) as plans, applicable, IRAs are or thetrustee responsibility or of custodian. the applicable generally provide income tax deferral regardlessinvest of in whether annuity they contracts. This meansplan that invests when in a an tax annuity favored contract,any it additional generally tax does benefits not (such result as in income income tax tax free deferral transfers). and Types of Tax-Favored Plans IRAs. copy of the prospectus and contract. Thement” “IRA contains Disclosure information State- about eligibility, contribution limits,particulars, tax and other IRA information. In additioninformation to (some this of which is summarized below),that the you IRS have requires a “free-look” after makingthe an contract. initial During contribution this to time, you cannotifying cancel us the in Annuity writing, by and we willPayments refund under all the of Annuity the (or, Purchase if providedthe by amount applicable credited state under law, the Annuity, ifcable greater), federal less and any state appli- income tax withholding. Tax Considerations Annuity is designed, you may purchaseconnection an with Annuity a for “rollover” an of IRA amounts in ment from plan a or qualified as retire- a transfercontribution from in another the IRA, case as of a ASAP current making III, a or single if contribution you consisting are of ageand your 50 catch-up IRA or contributions contributions older attributable by to thecurrent prior year year from and January the 1 tocase April of 15 XT6 of and the APEX current II. yearincreasing In in to 2006 the $5,000 the in contribution 2008. limit After iswill 2008 $4,000; be the indexed contribution for amount inflation. Thecatch-up tax provision law for also individuals provides who for are a permitting age them 50 to and contribute above, an additional $1,000 each year.

AMERICAN SKANDIA ANNUITIES PROSPECTUS 100 AMERICAN SKANDIA ANNUITIES PROSPECTUS 101 ; 2 ⁄ 1 You may own a TDA generally if you are either an Because of the way each Annuity is designed, if you meet TDAs. • Your severance• of employment; Your death; • Your total and permanent disability; or certain income limitations you may purchaseIRA, an as Annuity a for current a contribution Roth inage the 50 case or of older ASAP by III, making orRoth a if IRA single you contributions contribution are and consisting catch-up of contributions your the attributable prior to year and the currentthe year current from year January in 1 the to case Aprilpersons of 15 who XT6 of meet and certain APEX income II. limitations Thegross (generally, Code income adjusted permits under $100,000), who areseparate not return married and filing who a receive certainfrom qualifying such distributions non-Roth IRAs, to directlydays, rollover a or “rollover” make, of within all 60 ordistribution any to part a of Roth the IRA amount which oftriggers they such current establish. taxation This (but conversion is notdistribution subject penalty). to Once a an 10% Annuity early hasregular been Roth purchased, IRA contributions will bepermitted accepted by to law. the As extent of Januaryan 1, eligible 2006, rollover an distribution individual from receiving aunder designated an Roth employer account plan may rollIRA over even the if distribution the to individual a is Roth conversion not contributions eligible to to a make Roth regular IRA. or rolling If over you funds are from considering your Rothplease account contact under your an Financial employer Professional plan, priorconfirm to whether purchase such to rollovers are being accepted. employer or employee of a tax-exemptunder organization Code (as Section defined 501(c)(3)) or aand public you educational may organization, make contributions toee’s a rights TDA to so the long annuity as are theTDA, nonforfeitable. employ- and Contributions any to earnings, a are notalso taxable make until contributions distribution. to You a may TDAagreement, under generally a up salary to reduction a maximumIndividuals of participating $15,000 in in a 2006. TDA whoend are of age the 50 year or will above be by$5,000 permitted the in to 2006. contribute After an 2006, additional theFurther, amount you is may indexed roll for over inflation. TDAYou amounts may to also another roll TDA over or TDA anplan, amounts IRA. a to SEP a and qualified a retirement 457qualify government as plan. a A TDA contract if may distributions only amounts (other held than as “grandfathered” of December 31,account 1988) of: may be made only on • Your attainment of age 59 ; (b) after the 2 ⁄ 1 , and distributions are not required to 2 ⁄ 1 The “Roth IRA Disclosure Statement” contains

begin upon attaining such age or at any time thereafter. owner’s death; (c) due to the owner’squalified disability; first or time (d) homebuyer for distribution a within theof meaning Section 72(t)(2)(F) of the Code; andbe (2) made the in distribution the must year that isyear at for least which five a tax contribution years was after madelished the to for first any the Roth owner IRA or estab- five yearsconversion after was a made rollover, from transfer, a or traditional IRADistributions to from a a Roth Roth IRA. IRA that aredistributions not will qualified be treated as made firstand from then contributions from earnings, and earnings willthe be same taxed manner generally as in distributions from a traditional IRA. requirements), you may make contributions toafter a attaining Roth age IRA 70 gross income; gross income. A “qualified distribution” is asatisfies distribution two that requirements: (1) the distribution must(a) be after made the owner of the IRA attains age 59 ROTH IRAs. (not including the employer’s SEP contribution“compensation” as for these purposes). However, forpurposes, these compensation in excess of certainestablished limits by the IRS will notlimit be is considered. $220,000; In 2006, this requirements not generally applicable to IRAs; and prior to 1997 may permit salary2006 deferrals with up the to employer $15,000 making in theseSEP. contributions However, to no the new “salary reduction”be or established “SARSEPs” after can 1996. Individuals participatingSARSEP in who a are age 50 orbe above permitted by to the contribute end an of additional theThereafter, $5,000 year the in will amount 2006. is indexed forAnnuities inflation. are These not available for SARSEPs. You will also be provided the same information, and have the

• If eligible (including meeting income limitations and earnings

• Contributions to a Roth IRA cannot be deducted• from your “Qualified distributions” from a Roth IRA are excludable from specific limits. Roth IRAs have, however, the following differences: Roth IRA accumulates tax-free, and contributions are subject to contract for a standard IRA. other Roth IRA information. Like standard IRAs, income within a • SEPs must satisfy certain participation and nondiscrimination • SEPs that contain a salary reduction or “SARSEP” provision same “free-look” period, as you would have if you purchased the information about eligibility, contribution limits, tax particulars and or die; 2 ⁄ 1 or 5 years. 2 . Amounts are not ⁄ 1 2 ⁄ 1 disabled; or substantially equal payments not less frequentlyally. than (Please annu- note that substantially equalcontinue payments until must the later of reachingModification age of 59 payments during that timein period retroactive will application result of the 10%Other tax exceptions penalty.) to this tax may apply. You should consult holding, you will have taxes withheldmarried by individual, us with as 3 if exemptions; you and are a You can use the Minimum Distribution option to satisfy the Although the IRS rules determine the required amount to be • the amount received is attributable to your becoming • generally the amount paid or received is in the form of your tax advisor for further details. Withholding Unless a distribution is an eligible“directly” rollover rolled distribution over that into is another qualifiedthe plan, IRA IRA variations (including described above), SEP,TDA, 457 we government will plan withhold or federal income20% tax withholding at does the not rate apply of to 20%.Roth distributions This IRAs. from For IRAs all and other distributions,we unless will you withhold elect federal otherwise, income taxsuch from distribution the at taxable an portion appropriate of percentage.withholding The on rate annuity of payments where noholding mandatory is with- required is determined oncertificate the that basis you of file the with withholding us.will If automatically you withhold do federal not taxes file on a• the certificate, following we basis: For any annuity payments not subject to mandatory with- subject to this tax penalty if: • the amount is paid on or after you reach age 59 IRS minimum distribution requirements for aneither Annuity beginning without annuity payments or surrenderingWe the will Annuity. distribute to you thisany minimum other distribution partial amount, withdrawals less that you made during the year. distributed from your IRA each year,are certain still payment available alternatives to you. Ifchoose you to own satisfy more your than minimum one distribution IRA,of requirement you your for can IRAs each by withdrawing thatyou amount inherit from more any than of one your Roth IRAs.rules IRA If apply. from the same owner, similar Penalty for Early Withdrawals You may owe a 10% taxdistributions penalty received on from the an taxable IRA, part SEP, of fied Roth retirement IRA, plan TDA before or you quali- attain age 59 continued and must be made for each year 2 / 1 of the calendar year after the calendar year you or retire, whichever is later. st 2 ⁄ 1

Effective in 2006, in accordance with recent changes in laws These distribution limits do not apply either to transfers or Employer contributions to TDAs are subject to the same salary deferrals, not including earnings attributableamounts). to these In any event, you must begin receiving distributions from your

thereafter. For a Tax Sheltered Annuitythe or participant a is 401(a) not plan a for greater which employer, than this 5 required percent beginning owner date of can the to generally retirement, be if deferred later. Roth IRAsduring are the not Owner’s subject lifetime. to The these amount rules least of equal the the payment minimum must required at underchoices the are IRS available rules. for Several calculating theinformation minimum on amount. the More mechanics of thisrequest. calculation Please is contact available us on at adeadline reasonable so time that before a the timely IRS distributionthere is is made. a Please 50% note tax that penaltydistribution on not the made amount in of a any timely minimum manner. and regulations, required minimum distributions will bebased calculated on the sum of the contractany value additional and death the benefits actuarial and value benefits of fromyou optional have riders purchased that under the contract. Asminimum a distributions result, may the be required larger than ifbased the on calculation the were contract value only, whichearlier may (but in not turn before result the in required an beginningamounts date) under distribution the of Annuity and an increasedincome amount distributed of to taxable the Annuity owner, andbenefits a and reduction the of benefits death of any optional riders. exchanges of investments under the contract,transfer” or of to your any interest “direct in themutual contract fund to “custodial another account” TDA described or under toSection Code a 403(b)(7). general contribution, nondiscrimination, and minimum participation rules applicable to “qualified” retirement plans. Minimum Distribution Requirements and Payment Option If you hold the contract underIRS an minimum IRA distribution (or requirements other must tax-favored be plan), means satisfied. that This generally payments must startafter by the April year 1 you of reach the age year 70 turn age 70 • Hardship (under limited circumstances, and only related to TDA by April 1 Tax Considerations

AMERICAN SKANDIA ANNUITIES PROSPECTUS 102 AMERICAN SKANDIA ANNUITIES PROSPECTUS 103 If Spousal Spousal consent to a distribution is generally not Defined Contribution Plans (including 401(k) Plans and ERISA IRAs, non-ERISA 403(b) Annuities, and 457 Plans. Defined Benefit Plans and Money Purchase Pension Plans. you are married at the timerequires your that payments benefits commence, be federal paid law tojoint you and in survivor the annuity” form (QJSA), of unless awaive you “qualified that and right, your in spouse writing. Generally,receive this a means reduced that payment you during will youryour life spouse and, will upon receive your at death, leastreceiving one-half for of life. what You you may were electif to your receive spouse another consents income to option theto election receive and the waives QJSA. his If or your herform spouse right of consents payment, to your the spouse alternative maythe not plan receive upon any your benefits death. from Federalpay law a also Death requires Benefit that to the your plan before spouse you if begin you receiving are your married benefit. andavailable This die in benefit the must form be of anis annuity called for a your “qualified spouse’s pre-retirement lifetime survivor and the annuity” plan (QPSA). pays If Death Benefits toto other have beneficiaries, a you beneficiary may other elect thanBenefit, your but spouse only receive if the your Death spousewaives consents his to or the her election right and toconsents receive to the the QPSA. alternate If beneficiary, your your spouse benefits spouse from will the receive plan no upon youryour death. attaining Any age QPSA 35 waiver will prior become to the null calendar and year void in on which the you first attain day age of 35, if still employed. 403(b) Annuities). required. Upon your death, your spouse willBenefit, receive even the if entire you Death designated someone elseunless as your your spouse beneficiary, consents in writing toyou waive are this married right. and Also, elect if an annuityfederal as law a requires periodic that income you option, receive aunless QJSA you (as and described your above), spouse consent to waive this right. consent to a distribution usually isany not Death required. Benefit Upon will your be death, paid to your designatedAdditional beneficiary. Information For additional information about federal taxapplicable law to requirements IRAs and Roth IRAs,Statement” see or the “Roth “IRA IRA Disclosure Disclosure Statement”, as applicable.

Please consult your tax advisor if you have any additional Information about sales representatives and commissions Information about any applicable fees, charges, discounts, We will provide you with formsthe and right instructions to concerning elect that noin amount the be ordinary withheld course. from However, payments youevent, should you know are that, liable in for any paymentthe of taxable federal portion income of taxes the on distributions,consult and with you your should tax advisor toyour find potential out liability more if information you on failbe to additional pay state such income taxes. tax There withholding may requirements.

of your retirement arrangement. applicable rules follows. For more information, consult the terms someone else as your beneficiary. A brief explanation of the Death Benefit to be paid to your spouse, even if you designated of your death, federal law may require all or a portion of the spouse waives that right. Similarly, if you are married at the time provides survivor annuity income to your spouse, unless your be required by federal law to choose an income option that If you are married at the time your payments commence, you may Qualified Contracts Spousal Consent Rules for Retirement Plans — questions. distribution of the Annuities. may be found in the sections of this Prospectus addressing of this Prospectus. penalties or adjustments may be found in the applicable sections commissions paid to any agent selling the contract. discounts and other costs related to the contract, as well as any This information has to do primarily with the fees, charges, information is disclosed to the person purchasing the contract. of insurance/annuity products to plans, provided that certain Administrative exemptions under ERISA generally permit the sale dealing with the plan, as a result of the sale of the contract. constitute a “plan”) from receiving any benefit from any party with respect to a plan (and, for these purposes, an IRA would also and the Code prevents a fiduciary and other “parties in interest” ERISA (the “Employee Retirement Income Security Act of 1974”) ERISA Disclosure/Requirements • For all other distributions, we will withhold at a 10% rate. Effective May 1, 2003, Skandia U.S. Inc., the sole shareholder No company other than American Skandia has any legal and (2) fixed annuities that areaddition, not American registered Skandia with has the in SEC. force In variable a life relatively insurance small policies, block but of itsuch no policies. longer actively sells of ASI, which is the parentby of Prudential American Financial, Skandia, Inc. was Prudential purchased Financial,Jersey Inc. insurance is holding a company New whose subsidiaryserve companies individual and institutional customers worldwideinclude and The Prudential Insurance Company oflargest America, life one insurance of companies the in theoffer U.S. a These variety companies of products andmutual services, funds, including annuities, life pension insurance, and retirementand related administration, services asset management, securities brokerage, banking and trust services, real estaterelocation brokerage services. franchises, and responsibility to pay amounts that itvariable owes life under insurance its contracts. annuity However, and Prudentialexercises Financial significant influence over the operationsstructure and of capital American Skandia. WHAT ARE SEPARATE ACCOUNTS? The separate accounts are where American Skandiainvests sets the aside assets and of some of ourperiod, annuities. assets In supporting the Account accumulation Values of thein Annuities a are separate held account established under theConnecticut. laws We of are the the State legal of owner ofaccounts. assets In in the the payout separate period, assets supportingpayments fixed and annuity any adjustable annuity payments weare make held available in our general account. Assetspayment supporting options variable may annuity be invested in ourgains separate and accounts. losses Income, from assets allocated toare these credited separate to accounts or charged against eachwithout such regard separate to account other income, gains orSkandia losses or of of American any other of ouronly separate be accounts. charged These with assets liabilities may which ariseissued from by the American Annuities Skandia. The amount oftion our to obligation allocations in to rela- the Sub-accounts isperformance based of on such the Sub-accounts. investment However, the obligations themselves are our general corporate obligations. Separate Account B During the accumulation period, the assetsbased supporting on obligations allocations to the Sub-accountsSub-accounts are of held American in Skandia Life AssuranceVariable Corporation Account B, also referred to as “Separate Account B”.

American Skandia offers a wide array of annuities, including

HOW WILL I RECEIVE STATEMENTS AND REPORTS? We send any statements and reports requiredregulation by to applicable you law at or your last knowntherefore address give of us record. prompt You notice should of anythe address right, change. to We the reserve extent permitted byconsent, law to and provide subject any to prospectus, your prospectus prior supplements, confirmations, statements and reports required by applicableregulation law to or you through our Internet Websitewww.americanskandia.prudential.com at or any other electronic means, including diskettes or CD ROMs. Westatement send to a you confirmation each time a transactionValue, is such made as affecting making Account additional Purchase Payments,exchanges transfers, or withdrawals. We also send quarterlydetailing statements the activity affecting your Annuity duringquarter. the We calendar may confirm regularly scheduled transactions,the such Annual as Maintenance Fee, Systematic Withdrawals (including 72(t) or 72(q) payments and required minimumtronic distributions), funds elec- transfer, Dollar Cost Averaging, andin static quarterly rebalancing, statements instead of confirming themYou immediately. should review the information in theseYou statements may carefully. request additional reports. We reserveup the to right $50 to for charge each such additionalannual report. report We and may a also semi-annual send report an containingfinancial applicable statements for the Separate Account andof the December Portfolios, 31 as and June 30, respectively,prior to consent, Owners make or, such with documents your available electronically through our Internet Website or other electronic means. WHO IS AMERICAN SKANDIA? American Skandia Life Assurance Corporation, aFinancial Prudential Company, (“American Skandia”) is acompany stock domiciled life in insurance Connecticut with licensesthe in District all of 50 Columbia states, and Puertowholly-owned Rico. subsidiary American of Skandia American is Skandia, a Inc.ultimate (“ASI”), parent whose is Prudential Financial, Inc.markets American its Skandia products to broker-dealers andthrough financial an planners internal field marketing staff.Skandia In markets addition, through American and in conjunctioninstitutions with such financial as banks that areaffiliates, permitted to directly, sell or annuities. through (1) deferred and immediate variable annuitieswith that the are SEC, registered including fixed interestoffered rate as annuities a that companion are to certainare of registered our because variable of annuities their and market value adjustment feature General Information

AMERICAN SKANDIA ANNUITIES PROSPECTUS 104 AMERICAN SKANDIA ANNUITIES PROSPECTUS 105 Values and benefits based on allocations to the There are no units in Separate Account D. The Fixed Alloca- We may employ investment managers to manage the assets We are not obligated to invest according to specific guide- Sub-accounts will vary with the investmentof performance the underlying mutual funds orapplicable. fund We portfolios, do as not guarantee theany investment Sub-account. results Your of Account Value allocatedSub-accounts to may the increase or decrease. Youentire bear investment the risk. There is noAccount assurance Value that of the your Annuity willthan equal the or total be of greater the Purchase Payments you makeSeparate to Account us. D During the accumulation period, assets supportingbased our on obligations Fixed Allocations are heldAssurance in Corporation American Separate Skandia Account Life D, also“Separate referred Account to D”. as Such obligations areinterest based rates on we the credit fixed to FixedAnnuities. Allocations These and obligations the do terms not of depend the performance on of the the investment assets in SeparateAccount Account D D. was Separate established by us pursuant to Connecticut law. tions are guaranteed by our general account.who An allocates Annuity a Owner portion of their AccountD Value does to not Separate participate Account in the investmentmaintained gain in or Separate loss Account on D. assets Such gainto or us. loss We accrues retain solely the risk thatAccount the D value may of drop the below assets the in reservesmust Separate and maintain. other Should liabilities the we value of theD assets drop in below Separate the Account reserve and otherrelation liabilities to we the must annuities maintain supported in by suchassets assets, from we our will general transfer account to Separatethe Account difference. D We to have make the up right toany transfer assets to of our Separate general Account account D inother excess liabilities. of We such maintain reserves assets and in Separatesupporting Account a D number of annuities we offer. maintained in Separate Account D. Eachresponsible manager for we investment employ management is of aSeparate different Account portion D. of From time tomanagers time may additional be investment employed or investmentbeing managers employed. may We cease are under nocontinue obligation to to employ employ any or investment manager(s)discretion and over have the sole investment managers we retain. lines or strategies except as mayother be state required insurance by laws. Connecticut and

We reserve the right to make changes to the Sub-accounts Prior to November 18, 2002, Separate Account B was organized Separate Account B consists of multiple Sub-accounts. Each

make to the Sub-accounts available under their Annuity. the Investment Company Act. We will notify Owners of changes we receipt of any exemptive relief that we are required to obtain under mutual fund or portfolio of an underlying mutual fund, subject to our or portfolio of an underlying mutual fund for another underlying specified dates. We may also substitute an underlying mutual fund contracts or close Sub-accounts for Annuities purchased on or after Sub-accounts to additional Purchase Payments on existing Annuity Sub-accounts at our sole discretion. We may also close may offer new Sub-accounts, eliminate Sub-accounts, or combine available under the Annuities as we determine appropriate. We B had no impact on Annuity Owners. through Separate Account B. The consolidation of Separate Account each optional benefit offered under Annuity contracts funded Charge, Distribution Charge (when applicable) and the charge for charge deducted for each combination of the applicable Insurance of Separate Account B has multiple Unit Prices to reflect the daily Life Assurance Corporation Variable Account B. Each Sub-account Sub-accounts), which was subsequently renamed American Skandia Life Assurance Corporation Variable Account B (Class 1 into the unit investment trust formerly named American Skandia each Sub-account class of Separate Account B was consolidated under the Investment Company Act. Effective November 18, 2002, each of which was registered as a distinct unit investment trust as a single separate account with six different Sub-account classes, of Separate Account B. does not supervise investment policies, management or practices investment trust, which is a type of investment company. The SEC Company Act of 1940 (“Investment Company Act”) as a unit Account B is registered with the SEC under the Investment Annuities issued by us through Separate Account B. Separate the charges for any optional benefits that are offered under the the Insurance Charge, Distribution Charge (when applicable) and rate Account B may have several different Unit Prices to reflect the name of the underlying Portfolio. Each Sub-account in Sepa- portfolio. The name of each Sub-account generally corresponds to Sub-account invests only in a single mutual fund or mutual fund Separate Account B. benefits that vary according to the investment performance of holds assets of other annuities issued by us with values and Connecticut law on November 25, 1987. Separate Account B also Separate Account B was established by us pursuant to change sub-advisors for a Portfolio andsub-advisory to agreements, enter without into obtaining new shareholder approval of the changes. This exemption (whichgranted is to similar other to investment exemptions companies thatsimilar are manner organized as in the a Trust) issupervision intended and to management facilitate of the the efficient sub-advisorsPrudential by Investments ASISI, LLC and the Trustees.required, The under Trust the is terms of theinformation exemption, to to shareholders provide following certain these typesmay of add changes. new We Sub-accounts that investfunds in other a than series the of Trust underlying thatseries is of managed funds by may an have affiliate. a Such should similar review order the from prospectuses the for SEC. the Youwhich other also various underlying Sub-accounts funds invest in as toobtained whether similar they orders have from the SEC. Material Conflicts It is possible that differences mayoffer occur shares between of companies an that underlying mutualrespective fund separate portfolio accounts to issuing their variable annuitiesvariable and/or life insurance products. Differences maysurrounding also the occur offering of an underlyingvariable mutual life fund insurance portfolio policies to and variablewe annuity offer. contracts Under that certain circumstances, theseconsidered differences “material could conflicts,” be in which casenecessary we action would to take protect persons withvariable voting annuity rights contracts under and our variable lifeagainst insurance persons policies with voting rights undernies’ other variable insurance insurance compa- products. If aarise “material between conflict” owners were of to variable annuitylife contracts insurance and policies variable issued by usaction we to would treat take such necessary persons equitably“Material in conflicts” resolving could the arise conflict. due toinstructions differences between in owners voting of variable lifevariable insurance annuity and contracts of the samemonitor or any different potential companies. conflicts We that may exist. Service Fees Payable to AmericanAmerican Skandia Skandia or our affiliates havewith entered the into investment agreements adviser or distributorlios. of Under the the underlying terms Portfo- of theseprovide agreements, administrative American and Skandia support may services towhich the it Portfolios receives for a fee ofassets up allocated to to 0.75% the (currently) Portfolios of under theinvestment each average adviser, Annuity distributor from and/or the the fund.may These be agreements different for each underlyingare mutual offered fund as whose Sub-accounts. portfolios continued American Skandia Trust (the “Trust”) has obtained an exemp- WHAT IS THE LEGAL STRUCTUREUNDERLYING OF FUNDS? THE Each underlying mutual fund is registeredmanagement as investment an company open-end under the InvestmentAct. Company Shares of the underlying mutualseparate fund accounts portfolios of are life sold insurance to companiesannuity offering and variable variable life insurance products.be The sold shares directly may to also qualified pension and retirement plans. Voting Rights We are the legal owner offunds the in shares which of the the Sub-accounts underlying invest. mutual rules, However, you under have SEC voting rights intained relation in to the Account Sub-accounts. Value If main- anrequests underlying a mutual vote fund of portfolio shareholders, weinstructions will received vote from our Owners shares with based Account on to Value that allocated Sub-account. Owners have theequal right to to the vote number an of amount sharesdo attributable not to receive their voting contracts. instructions If in we will relation vote to those certain shares shares, in we theshares same for manner which and we proportion have as received the procedure instructions. is This sometimes voting referred to asindicated “mirror in voting” the because, immediately as preceding sentence,votes we that mirror are the actually cast, rathervote. than In decide addition, on because our all own the howheld shares to within of our a separate given account mutual are fund intend legally to owned vote by all us, of we sucha shares vote when of that its underlying shareholders. fund As seeks counted such, towards all whether such there shares is will a be fund’s quorum shareholder at meeting the and underlying towards thethe ultimate vote. outcome Thus, of under “mirror voting,”of it a is small possible percentage that of the contractholders votes determine who the actually ultimate vote outcome. will We willwho furnish have those Account Owners Value allocated tounderlying a mutual Sub-account fund whose portfolio has requestedwith a proxy “proxy” materials vote and the necessarytheir forms voting to instructions. provide Generally, us you with willinstructions be for asked us to to provide vote onfundamental matters investment such strategy, as adoption changes of in a a advisory new agreement, investment or matters relating tounderlying the mutual structure fund of that the require a vote of shareholders. tion from the Securities and Exchangeits Commission co-investment that advisers, permits American Skandia Investmentices, Serv- Incorporated (“ASISI”) and Prudential Investmentssubject LLC, to approval by the Board of Trustees of the Trust, to General Information

AMERICAN SKANDIA ANNUITIES PROSPECTUS 106 AMERICAN SKANDIA ANNUITIES PROSPECTUS 107 In addition, in an effort to promote the sale of our products On July 1, 2003, Prudential Financial combined its retail (which may include the placement ofthe American Annuities Skandia on and/or a preferred orlist recommended and/or company access or to product the firm’sASM registered may representatives), enter we into or compensation arrangementsbroker-dealer with firms certain with respect to certainrepresentatives or of all such registered firms under whichseparate such compensation firms or may reimbursement receive for, amongtraining other of things, sales personnel and/or marketingistrative and/or services admin- and/or other services theyservices provide. may These include, but are notof limited the to: firm educating on customers the Annuitys’and features; analysis, conducting providing due office diligence access, operationssupport; and holding systems seminars intended to educatetered the representatives firm’s and regis- make them morethe knowledgeable Annuities; about providing a dedicated marketingproviding coordinator; priority sales desk support; andmarketing providing compliance expedited approval. To the extentrules permitted and by other NASD applicable laws andallow regulations, other ASM promotional may incentives pay or or paymentscash in or the non-cash form compensation. of These arrangementsoffered may to not all be firms and thebetween terms firms. of A such list arrangements of may the differ an firms amount to of whom greater American than Skandia $10,000 pays provided under in these the arrangements Statement is of Additionalavailable Information, upon which request. is You should noteregistered that representatives firms and and branch individual managers withinfirms some participating in one of thesemight compensation receive arrangements greater compensation for sellingfor the selling Annuities a than different annuity thatcompensation is arrangements. not While eligible compensation for is these generally taken into account as an expenseapplicable in to considering an the annuity charges product, anypaid such by compensation us will or be ASM andyou. will Overall not compensation result paid in to any the additionalexceed, distributing charge based firm to on does actuarial not assumptions, 8.5%Purchase of Payments the made. total Your registered representativeprovide can you with more information aboutarrangements the that compensation apply upon the sale of the Annuity. securities brokerage and clearing operations withWachovia those Corporation of (“Wachovia”) and formed Wachovia Securities Financial Holdings, LLC (“Wachovia Securities”),venture a headquartered joint in Richmond, Virginia. Prudentialhas Financial a 38% ownership interest inWachovia the owns joint the venture, remaining while 62%.

Commissions are paid to firms on sales of the Annuities Each Annuity is offered on a continuous basis. ASM enters ASM’s principal business address is One Corporate Drive, In addition, the investment adviser, sub-advisor or distributor

Separate Account. Annuity do not result in any additional charge to you or to the Commissions and other compensation paid in relation to your providing ongoing service to you in relation to your Annuity. may also provide compensation to the distributing firm for compensation based on all or a portion of the Account Value. We provide a lower initial commission plus ongoing annual ASL II. Alternative compensation schedules are available that 7.0% for ASAP III, 6.0% for XT6, 5.5% for APEX II and 2.0% for percentage of Purchase Payments made, up to a maximum of practice of his or her firm. Commissions are generally based on a will receive a portion of the compensation, depending on the according to one or more schedules. The individual representative may offer the Annuities directly to potential purchasers. insurance agents under state insurance law. In addition, ASM those firms. Such representatives will also be our appointed for each Annuity are solicited by registered representatives of Annuities but are exempt from registration (“firms”). Applications tered under the Exchange Act and with entities that may offer the into distribution agreements with broker-dealers who are regis- Inc. (“NASD”). is a member of the National Association of Securities Dealers, under the Securities Exchange Act of 1934 (“Exchange Act”) and Shelton, Connecticut 06484. ASM is registered as broker-dealer American Skandia Trust. and life insurance products we offer and co-distributor of prospectus. ASM acts as the distributor of a number of annuity principal underwriter of the securities offered through this owned subsidiary of American Skandia, Inc., is the distributor and American Skandia Marketing, Incorporated (“ASM”), a wholly- AMERICAN SKANDIA? WHO DISTRIBUTES ANNUITIES OFFERED BY Annuity and the available options. sentatives and creating marketing material discussing each and seminars attended by broker-dealer firms’ registered repre- include, but are not limited to: co-sponsoring various meetings they provide in connection with each Annuity. These services may marketing and/or administrative services and/or other services reimbursement or paying directly for, among other things, of the underlying Portfolios may also compensate us by providing or , our Internet , our Internet [email protected] mail to the proper address mayreceiving result and in processing a your delay request. in our visiting our Internet Website at www.americanskandia.prudential.com. Internet Website at www.americanskandia.prudential.com. You can obtain account information by calling our automated Transactions requested via telephone are recorded. To the • sending an email to • accessing information about your Annuity through our response system and at www.americanskandia.prudential.com Website. Our Customer Service representatives areduring also business available hours to provide youaccount. with You information can about request your certain transactionsphone through voice our response tele- system, our Internetcustomer Website service or representative. through You a can providea authorization third for party, including your attorney-in-factpower acting of pursuant attorney to or a your Financialaccount Professional, information to and access perform your certain transactionsaccount. on You your will need to completeidentifies a those form transactions provided that by you us wish which telephonic to and authorize electronic via means and whetherauthorize you a wish third to party to performnote any that such unless transactions. you Please tell usactions otherwise, that we are deem directed that by all your trans- respect Financial to Professional your with Annuity have beenthat authorized you by or you. your We representative require providebefore proper performing identification transactions over the telephoneInternet or Website. through This our may include aNumber Personal (PIN) Identification that will be providedAnnuity to or you you upon may issue establish of or your automated change response your system PIN and by at calling our www.americanskandia.prudential.com Website. Any third party that youtransactions authorize on to your perform account financial will beaccount. assigned a PIN for your extent permitted by law, we willclaims, not loss, be liability responsible or for expense any inrequested connection by with telephone a or transaction other electronicsuch means transaction if instructions we after acted following on reasonabledures proce- to identify those persons authorizedon to your perform Annuity transactions using verification methodsrequest which for may your include Social a Security number,electronic PIN identification. or We other may form be of liable for losses due to continued Wachovia and Wachovia Securities are key distribution our normal business hours, Monday throughSkandia’s Friday, telephone or automated response system at 1-800-766-4530. Variable Annuities, P.O. Box 7960, Philadelphia,for PA express 19176 mail OR American Skandia —2101 Variable Welsh Annuities, Road, Dresher, PA 19025. NOTE: Failure to send partners for certain products of Prudentialincluding Financial mutual affiliates, funds and individual annuitiesdistributed that through are their financial advisors, bankindependent channel channel. and In addition, Prudential Financialprovider is to a the service managed account platformprograms and offered certain by wrap-fee Wachovia Securities. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE American Skandia publishes annual and quarterlyfiled reports with that the are SEC. These reportsabout contain American financial Skandia information that is annuallyindependent audited registered by public an accounting firm. Americandia’s Skan- annual report for the yeartogether ended with December subsequent 31, periodic 2005, reports thatfiles American with Skandia the SEC, are incorporatedprospectus. by You reference can into obtain this copies, atthis no information, cost, including of the any American and Skandia allthat annual of is report not ordinarily mailed toreports contract and owners, any the subsequently more filed current documentscontacting at us no at cost American by Skandia —Box Variable 7960, Annuities; Philadelphia, P.O. PA 19176 (Telephone:SEC 203-926-1888). file The number for American Skandiaand is copy 33-44202. any You filings may made read bythe American SEC’s Skandia Public with Reference the Room SEC at at ington, 100 D.C. F 20549. Street, You N.E. can Wash- obtainthe information Public on Reference the Room operation by of callingmaintains (202) an 551-8090. Internet The site SEC that containsinformation reports, statements, proxy and and other information regardingthat issuers file electronically with the SEC at http://www.sec.gov. FINANCIAL STATEMENTS The financial statements of the separateSkandia account Life and Assurance American Corporation are includedof in Additional the Information. Statement HOW TO CONTACT US You can contact us by: • calling our Customer Service Team at 1-800-752-6342 during • writing to us via regular mail at American Skandia — General Information

AMERICAN SKANDIA ANNUITIES PROSPECTUS 108 AMERICAN SKANDIA ANNUITIES PROSPECTUS 109 With the approval of Skandia Insurance Company Ltd. (publ) American Skandia’s litigation is subject to many It should be noted that the judgments, settlements and integrity errors resulting in incorrect contractualThe annuity lack dates. of notice and theannuities data administrative integrity system, errors, all as occurred reflected beforeition on the of the acquis- American Skandia by Prudentialstate Financial, insurance Inc. departments Certain have requested modificationsremediation to program the that American Skandia anticipatesimpact will the overall cost of theadministrative program. costs The of remediation the and remediation programto would the be indemnification subject provisions of thewhich agreement Prudential pursuant Financial, to Inc. acquired American“Acquisition Skandia Agreement”). (the (“Skandia”), an offer was made toAmerican the Skandia authorities and investigating certain affiliated companies,New the York SEC Attorney and General, to settlemarket the timing matters in relating variable to annuities bycivil paying penalty restitution of and $95 a million inAmerican the Skandia aggregate. believes While these not discussions assured, aresettlements likely with to these lead authorities. to Any regulatoryinvolving settlement American Skandia or any affiliatesthat of Prudential American Financial, Skandia Inc. acquired fromsubject Skandia to would the be indemnification provisions ofAgreement. the If Acquisition achieved, settlement of thecontinuing matters monitoring, could changes involve to and/or supervisionpractices, of findings business that may adversely affectadditional existing litigation, or adverse cause publicity and otherto adverse American impacts Skandia’s business. uncertainties, and given its complexity andcannot scope, be its predicted. outcome It is possiblethe that cash the flow results of of American operations Skandiaannual or in period a could particular be quarterly materially or affectedunfavorable by resolution an of ultimate pending litigation andmatters regulatory depending, in part, upon theflow results for of such operations period. or Management cash believes,ultimate however, outcome that of the all pending litigationafter and consideration regulatory of matters, applicable reserves, shouldmaterial not adverse have effect a on American Skandia’s financial position. expenses associated with many of theseand lawsuits, regulatory administrative matters, and contingencies, includingdescribed the above, claims may, in whole orcertain in retention part, requirements, after fall satisfaction within of Skandia’s indemnification obligations to Prudential Financial, Inc.subsidiaries and under its the terms of theobligations Acquisition of Agreement. Skandia Those provide for indemnificationjudgments, of settlements, certain and costs and expenseslawsuits associated and with other claims against American Skandia (“matters”),

American Skandia is in discussions with various state American Skandia does not guarantee access to telephonic,

dates. Some of these contracts also were affected by data the contracts were not annuitized at their contractual annuity date (both dates referred to as the “contractual annuity date”) and past their designated annuitization date or default annuitization not receive notification that the contracts were approaching or annuity contracts issued by us. The owners of these contracts did correct errors in the administration of approximately 11,000 insurance departments concerning a remediation program to summary of certain pending proceedings. including punitive or exemplary damages. The following is a actions, parties are seeking large and/or indeterminate amounts, and harassment. In some of our pending legal and regulatory and employment relationships, including claims of discrimination activities, such as our investments, contracts, leases and labor are also subject to litigation arising out of our general business customer accounts or breached fiduciary duties to customers. We recommended unsuitable products to customers, mishandled charged excessive or impermissible fees on these products, disclosures in connection with the sale of annuity products or among other things, that we made improper or inadequate subject to class action lawsuits and other litigation alleging, business practices in the industry in which we operate. We are proceedings specific to us and proceedings generally applicable to American Skandia’s pending legal and regulatory actions include ordinary course of its business, including class action lawsuits. American Skandia is subject to legal and regulatory actions in the LEGAL PROCEEDINGS unenforceable. policy as expressed in the Securities Act and is therefore the opinion of the SEC such indemnification is against public the foregoing provisions, the registrant has been informed that in directors, officers or persons controlling the registrant pursuant to rities Act of 1933 (the “Securities Act”) may be permitted to Insofar as indemnification for liabilities arising under the Secu- INDEMNIFICATION transaction privileges at any time. or terminate telephonic, facsimile, Internet or any other electronic or delayed. American Skandia reserves the right to limit, restrict facsimile, Internet or any other electronic means are unavailable which we will accept transaction instructions when telephonic, all times. Regular and/or express mail will be the only means by will be able to accept transaction instructions via such means at procedures. facsimile, Internet or any other electronic information or that we unauthorized or fraudulent instructions if we did not follow such Principal Underwriter/Distributor — American Skandia Market- ing, Incorporated Payments Made to Promote Sale of our Products How the Unit Price is Determined Additional Information on Fixed Allocations • How We Calculate the MarketGeneral Value Information Adjustment • Voting Rights • Modification • Deferral of• Transactions Misstatement of• Age or Sex Ending the Offer Annuitization Experts Legal Experts Financial Statements continued Account B Account D and apply only to matters, orthe groups costs of and related expenses matters, exceed for $25,000obligations which individually. only Those apply to such costs$10 and million expenses in that the exceed aggregate, subjectproceeds, to certain reduction accruals for and insurance any realizedto tax such benefit amounts, applicable and those obligationsthat do such not aggregate apply exceeds to $1 the billion. extent CONTENTS OF THE STATEMENT OFINFORMATION ADDITIONAL The following are the contents ofInformation: the Statement of Additional General Information about American Skandia • American Skandia• Life Assurance Corporation American Skandia Life Assurance Corporation Variable • American Skandia Life Assurance Corporation Separate General Information

AMERICAN SKANDIA ANNUITIES PROSPECTUS 110 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-1 end of the Prospectus or ou elect certain optional of the applicable year. st on, which you may obtain free of charge by sending in the request form at the et based charges for each Sub-account, not all Sub-accounts are available if y The following tables show for each Annuity: (a) the

When a Unit Price was first calculatedthat for Unit a at particular $10.00 Sub-account, per we Unit. set Thereafter,Unit the Unit Prices price Prices and of vary Units based are on provided market forto performance. Sub-accounts January that 1, commenced 2006. operations prior

* Note: While a unit price is reflected for the maximum combination of ass benefits. ** The remaining unitcontacting values us appear at in 1-800-752-6342. the Statement of Additional Informati Unit Prices And Numbers Of Units: Separate Account B consists of multiple Sub-accountsoptions that for are the available American as Skandia investment Annuities. Eachmutual Sub-account fund invests or only mutual in fund a portfolio. single Allinvestment or options some for of other these variable Sub-accounts annuities are weprospectuses. available offer as pursuant to different historical Unit Price, corresponding to the Annuitylowest features combinations bearing of the asset-based highest charges*, and as ofthe the Sub-accounts dates of shown, Separate for Account Units B in thatProspectus**; each are and of being (b) offered the pursuant number to of this Unitsthe outstanding dates for shown. each In such the Sub-account tables, as “BOP”End of refers of to Period. Beginning The of period Period for and eachSince “EOP” year November refers begins 18, to on 2002, January we 1 have and beenPrices ends determining, for on on each December a Sub-account 31. daily of basis, Separate multiple Accountbecause Unit B. several We of compute our multiple variable Unit annuities Prices investannuities in deduct the varying same charges Sub-accounts, that and correspond these toInsurance each Charge, combination Distribution of Charge the (when applicable applicable) andoptional the benefit. charges Where for an each asset-based charge correspondingSub-account to within a a particular new annuity product iswithin identical an to existing that annuity, in the the Unit same Pricethe Sub-account for existing the annuity. new In annuity such will cases, be wecondensed identical will financial to for information that reference for of purposes the depict, new in annuity,annuity. the Unit The Prices year of in the which existing operations commencedparentheses. in To each the such extent Sub-account a is Sub-account noted commencedcalendar in operations year, during the a Unit particular Price as ofresults the from end the of commencement the of period operations reflects until only December the 31 partial year About Separate Account B Appendix A — Condensed Financial Information continued ———— ————— ————— ———— ————— ————— ———— ————— ————— ———— ————— ————— ———— ————— ————— ———— ————— ————— ———— ————— ————— ———— ————— ————— ———— ————— ————— ———— ————— ————— With No Optional Benefits BOP Unit Value — EOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits $10.00 BOP 171,403 Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP — Unit $9.99 ValueEOP Unit Value — Number of UnitsWith No Optional Benefits $10.01 BOP — 403,183 Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP $10.00 BOP — Unit ValueEOP Unit Value — Number of UnitsWith No Optional Benefits $10.02 BOP — 405,782 Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP $10.01 BOP — Unit ValueEOP Unit Value — Number of UnitsWith No Optional Benefits $10.03 BOP — Unit Value 53,897 EOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP $10.02 BOP — Unit ValueEOP Unit Value — Number of Units $10.04 — 215,279 $10.03 — — Sub-accountAST Aggressive Asset Allocation Portfolio 2005 2004 2003 2002 2001 2000 Appendix A — Condensed Financial Information About Separate Account B ASAP III – Prospectus AST Capital Growth Asset Allocation Portfolio AST Balanced Asset Allocation Portfolio AST Conservative Asset Allocation Portfolio AST Preservation Asset Allocation Portfolio

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-2 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-3 (1997) (1999) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber $8.24 of Units 1,051,557 9.04 553,542 $10.57 $7.13 — — 8.24 362,254 $5.53 — — 7.13 — 153,652 $6.86 136,976 — — 5.53 — $8.99 33,897 6.86 — — — $8.99 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit Value $16.42Number of Units 2,113,594 18.90With No Optional Benefits BOP Unit Value 1,953,908 $14.32EOP Unit Value $11.20 —Number of Units 16.42With — LT5, HDV, and EBP BOP 1,166,396 Unit ValueEOP Unit $10.35 ValueNumber $7.01 of Units 402,497 — — 14.32 7.87With 7,064 No Optional — Benefits BOP Unit $14.1 ValueEOP Unit Value $10.62 $5.86 — 233,045Number of Units 10.35With — LT5, 7.01 — 5,277 HDV, — and EBP BOP $18.68 Unit ValueEOP — Unit Value $10.98Number 91,736 of $4.43 Units 14.1 218,705 11.67 — — 6,782 With — 5.86 No — Optional — Benefits BOP Unit Value 32,967 —EOP Unit $18.68 $9.40 $5.41 Value $10.39 — 213,485Number of Units 10.98With — LT5, — HDV, — and 4.43 EBP BOP — Unit — Value 29,954EOP — Unit Value $8.08 $15.97 123,219 — $7.48Number of Units 126,824 16.00 — — 9.40 20,311 5.41 — — — — 46,925 — $17.38 $8.64 — $10.35 — 107,136 15.97 $8.08 7.48 — — — — — 49,536 — $9.72 $12.12 145,364 — — — 17.38 8.64 23,151 — — — — $18.7 6,331 — — $9.72 12.12 — — $20.25 — — 2,439 — — 18.7 — — — 978 — $20.25 — — — — — — Sub-accountAST JP Morgan International Equity 2005AST William 2004 Blair International Growth 2003 2002 2001 2000 ASAP III – Prospectus (continued) AST LSV International Value AST MFS Global Equity AST Small-Cap Growth continued ———— ———— ———— ———— ———— ———— ———— ———— ———— ———— (2000) (2000) (1999) (2002) (1997) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $7.41 267,925 7.35With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of $10.23 $6.86 Units — 293,384With LT5, HDV, and EBP — 7.41BOP Unit ValueEOP Unit ValueNumber of Units $10.12 258,089 $4.71 1,386,930 10.94 — —With No Optional Benefits 6.86BOP Unit — Value 44,611EOP Unit Value 1,169,995 $6.48 $8.33Number of $10.87 Units —With LT5, 10.12 HDV, and EBP —BOP 4.71 — Unit 41,602 ValueEOP Unit Value 859,909 $9.17 Number of Units $16.64 $4.98 1,484,712 17.52 — 35,743 —With 6.48 8.33 No Optional Benefits — 25,040BOP Unit — ValueEOP Unit $7.12 Value 1,293,786 $14.47Number of $10.56 Units — $9.17 With 10,912 LT5, 16.64 4.98 HDV, and EBP —BOP — Unit — ValueEOP $9.08 Unit Value 962,965 $10.79Number of Units $13.13 7.12 187,206 243 13.12 — — 14.47With No Optional Benefits — 66,744BOP Unit — $12.06 ValueEOP Unit Value $10.89Number of $9.08 Units — 138,078 $9.94 10.79With 33,608 LT5, 13.13 HDV, and $11.41 EBP —BOP — Unit — ValueEOP Unit ValueNumber of $7.69 Units 131,066 12.06 $4.44 15,339 2,666,933 — 10.89 4.60 — — — $11.41 2,232,502 124 — $10.49 $3.87 — $7.69 — 4.44 — — 1,535,565 — — $2.98 — — — 28,812 — 3.87 — $4.15 — 17,882 — 2.98 — — $7.03 2,473 4.15 — $7.03 — Sub-accountAST DeAM Small-Cap Growth 2005AST Federated Aggressive Growth 2004 2003AST 2002 Small-Cap Value 2001 2000 AST DeAM Small-Cap Value AST Goldman Sachs Mid-Cap Growth Appendix A — Condensed Financial Information About Separate Account B ASAP III – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-4 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-5 ———— ———— ———— ———— ———— ———— ———— ———— ———— ———— (1994) (1993) (1995) (2000) (2000) (formerly AST Gabelli All-Cap Value) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit Value $11.63 192,419With 12.11 No Optional Benefits BOP Unit ValueEOP Unit ValueNumber $10.21 of Units $10.27 — 256,401With LT5, HDV, and EBP 11.63BOP Unit ValueEOP Unit Value $7.61 140,873 $17.81 10.21 254,041 23.11 — — 38,982 $9.72 $13.75 $11.65 — 192,336 7.61 17.81 — 26,857 $10.07 $10.42 75,013 9.72 12,895 13.75 — — — $11.18 4,994 $10.07 10.42 $11.24 — — 1,879 11.18 — –0– $11.24 — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $7.14 771,461With No Optional 8.00 Benefits BOP Unit ValueEOP Unit ValueNumber of Units $11.25 $6.23 — 555,160With LT5, HDV, and EBP BOP Unit Value — 7.14EOP Unit ValueNumber of Units 371,267 $16.76 $4.83 1,303,740 18.55 — — 6.23With No Optional Benefits — 56,712BOP Unit Value $7.11 1,116,503EOP $13.82 Unit Value $10.80 —Number of Units 16.76With 4.83 — LT5, 51,711 HDV, — and EBP BOP Unit Value 781,348 $9.71 $10.26EOP Unit ValueNumber of Units 36,882 13.82 $6.49 — 7.11 — — 69,657 $11.62 7.48 — — 10.26 $9.71 56,219 $11.63 $6.06 $12.13 — — — — 214,092 6.49 11.62 16,574 Number of Units $4.53 — 200,264 — — 6.06 $12.13 — $7.14 61,001 — 4.53 — — $8.68 56,649Number of Units 7.14 — 30,915 — $8.68 — — — (merged into AST Neuberger Berman Mid-Cap Growth) Sub-accountAST Neuberger Berman Mid-Cap Growth 2005AST Neuberger Berman Mid-Cap Value 2004 2003AST 2002 Alger All-Cap Growth 2001 2000 AST Mid-Cap Value AST T. Rowe Price Natural Resources ASAP III – Prospectus (continued) continued ———— ———— ———— ———— ———— ———— ———— ———— ———— ———— (1992) (1997) (2000) (1999) Number of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of Units —With LT5, HDV, and EBP BOP Unit ValueEOP Unit $11.18 ValueNumber of Units 242,789 12.07 — $9.58 $10.63 — 191,637 11.18 — $7.67 85,554 — — 9.58 — $9.17 7,126 7.67 — $9.83 1,696 9.17 — 442 $9.83 — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit Value $4.68 657,833 4.77 $10.67 $4.57 — 733,920 4.68 604,491 $3.69 — — 4.57 405,437 $5.33 — 404,404 3.69 $7.9 235,747 5.33 — $7.9 — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit Value $6.19Number of Units 512,012 7.12 $12.02 $5.93 — 326,194 — 6.19 263,698 $4.86Number of Units — — 5.93With — No Optional Benefits 106,056BOP Unit Value $7.12EOP Unit ValueNumber of Units —With — 106,762 LT5, 4.86 HDV, and EBP BOP Unit ValueEOP $8.46 Unit Value $9.67Number 7,048,021 of Units 10.20 97,356 7.12 — — 5,717,404 $10.82 $8.46 — 9.67 — $8.46 4,075,719 — $6.50 — — 228,033 8.46 — $7.8 182,904 — 6.5 $10.09 114,992 — 7.8 $10.09 — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit Value $7.04 1,025,239 7.39 791,823 $10.67 $6.44 — 7.04 893,170 $5.31 — — 6.44 112,701 $7.48 47,656 — 5.31 $9.68 3,089 7.48 — $9.68 — (formerly AST AllianceBernstein Large-Cap Growth) AST DeAM Large-Cap Value Sub-accountAST T. Rowe Price Large-Cap Growth 2005 2004AST MFS Growth 2003 2002AST Marsico Capital Growth 2001 2000 AST Goldman Sachs Concentrated Growth Appendix A — Condensed Financial Information About Separate Account B ASAP III – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-6 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-7 ————— ————— ————— ————— ————— (1998) ————— —————— ————— —————— ————— —————— ————— —————— ————— —————— (1997) (2001) (2001) (1998) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit Value EOP Unit ValueNumber of Units $9.66 10.72With No Optional Benefits BOP Unit — ValueEOP Unit ValueNumber $8.89 of Units $11.24 With LT5, HDV, 9.66 and 194,363 EBP BOP Unit Value EOP Unit ValueNumber of $7.14 Units $12.28 137,293 635,232 8.89 12.79With No Optional Benefits BOP Unit ValueEOP Unit $9.64 Value $10.91 37,810Number of 603,508 Units $10.23 With 12.28 LT5, 7.14 HDV, and EBP BOP Unit Value EOP Unit Value $8.61 453,569Number of — Units –0– $22.03 10.91 $9.64 223,264 24.98With No Optional Benefits BOP Unit $10.05 Value 82,054EOP Unit Value $16.17Number — of 281,181 Units $11.92 8.61 — With 22.03 LT5, HDV, and EBP BOP Unit 18,453 Value EOP Unit $11.91 — Value 149,582Number of Units $10.05 $8.99 16.17 851,019With No 9.20 Optional Benefits — $11.75BOP Unit Value 25,464EOP Unit ValueNumber — $8.28 of 642,882 Units 11.91 $10.32 With LT5, HDV, and $11.57 EBP 8.99BOP Unit 16,487 Value EOP Unit Value 554,156Number of $6.59 Units 11.75 $9.48 16,557 626,417 8.28 9.79 90,506 $11.57 $8.41 $8.52 613,910 $10.25 6.59 9.48 39,414 $9.46 339,653 $6.70 9,941 8.41 8.52 124,168 $8.47 $9.46 113,372 6.7 $9.36 70,887 8.47 $9.36 (merged into AST AllianceBernstein Managed Index 500) Sub-accountAST AllianceBernstein Growth + Value 2005AST 2004 AllianceBernstein Core Value 2003 2002AST Cohen & Steers Real Estate 2001 2000 AST AllianceBernstein Managed Index 500 AST American Century Income & Growth ASAP III – Prospectus (continued) continued (1997) (1994) (1993) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit Value $10.56Number of Units 173,191 10.91 $9.81 $10.23 — 146,721 10.56 — 115,095 $8.36 — — 9.81 — 5,490 $9.38 8.36 — — 4,905 — $9.87 9.38 — — 1,725 — $9.87 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit Value $11.39Number of Units 558,395 11.77 $10.37 $10.27 — 357,085 11.39 — $8.47 222,150 — — 10.37 — 13,799 $9.52 8.47 — — 13,152 $10.12 — 9.52 2,412 — — — $10.12 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit Value $11.24Number of Units 5,200,126 11.63With No Optional Benefits 4,119,501 $10.25BOP Unit Value $10.18 —EOP Unit Value 11.24Number of — UnitsWith 3,076,626 LT5, HDV, and EBP BOP Unit Value $7.84EOP Unit Value $10.25Number — of — Units 10.25 142,152 694,885 10.77 —With No $10.35 Optional Benefits BOP Unit ValueEOP 205,232 Unit $8.99 Value $10.47 — 7.84 417,314Number of Units — — 10.25With $10.53 — LT5, HDV, and EBP BOP — Unit Value 34,439 EOP Unit Value 204,589 10.35 $7.59Number $9.55 of Units 10.09 — — 80,896 — — 8.99 — — $10.53 44,419 $9.31 $10.54 $8.71 — 78,619 9.55 7.59 — — — — — 44,212 $10.32 — — $7.38 61,801 — — 9.31 — 8.71 8,596 — — — — — $8.84 34,451 $10.32 — 7.38 — — — — $10.14 38,208 — 8.84 — — — 30,678 — — $10.14 — — — — — (formerly AST Hotchkis & Wiley Large-Cap Value) AST T. Rowe Price Asset Allocation Sub-accountAST AllianceBernstein Growth & Income 2005AST Large-Cap 2004 Value 2003 2002AST Global Allocation 2001 2000 AST American Century Strategic Balanced Appendix A — Condensed Financial Information About Separate Account B ASAP III – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-8 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-9 (1995) (2000) (1994) (1994) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit Value $14.73Number of Units 938,585 13.89With No Optional Benefits $13.73BOP Unit Value — 657,913 $9.37EOP Unit Value 14.73Number of — UnitsWith LT5, HDV, and EBP BOP Unit $12.32 Value 289,862EOP Unit Value $12.06Number of — Units 13.73 — 873,440 12.04 — $10.84With No Optional 36,987 Benefits BOP Unit Value $10.99EOP Unit Value 12.32 — 957,756 $9.78Number of Units — 12.06 —With $10.7 — LT5, 16,390 HDV, and EBP BOP — Unit ValueEOP Unit Value 10.84 $9.16 $12.71 906,947Number of Units 1,294,706 12.69 — 10.99 — — –0– — — — $10.7 73,614 $9.27 1,012,739 $11.98 — $9.87 12.71 9.16 — — — — — 45,297 814,135 $9.37 — — $10.22 — 9.27 11.98 — 12,929 — — 43,077 — — $10.3 — — $9.37 10.22 16,628 — — $10.13 — — — — 10.3 425 — — — — $10.13 — — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit Value $13.72Number of Units 1,924,370 13.88 3,074,732 $13.23 $10.07 — 13.72 — 2,301,863 $12.72 — — 13.23 362,294 — $11.8 275,317 12.72 — — $10.97 — 37,918 11.8 — — — $10.97 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit Value $12.18Number of Units 2,996,257 12.22 2,189,975 $12.08 — $9.98 12.18 — 956,856 $10.09 — 12.08 — 38,260 — $11.29 10.09 112,948 — — $10.59 — 11.29 1,940 — — $10.59 — — — — — — (formerly AST Goldman Sachs High Yield Bond) Sub-accountAST T. Rowe Price Global Bond 2005AST High 2004 Yield 2003 2002AST Lord Abbett Bond-Debenture 2001 2000 AST PIMCO Total Return Bond ASAP III – Prospectus (continued) AST PIMCO Limited Maturity Bond continued (1999) (1996) (1999) (1992) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit Value $12.52Number of Units 351,335 16.26With No Optional Benefits $10.59BOP Unit Value $11.97 — 264,541EOP Unit Value 12.52Number of — UnitsWith LT5, HDV, and EBP BOP Unit Value $6.71 122,136EOP Unit Value $17.32Number — of — Units 10.59 18.02 23,574 —With No Optional Benefits $7.53 6,530BOP Unit Value $15.79EOP Unit Value $10.12 — 6.71Number of Units — 19,612 — 17.32With — LT5, HDV, and EBP $8.19 6,555BOP — Unit ValueEOP Unit $12.67 ValueNumber $6.96 of 7.53 Units 10,586 135,001 — — 15.79 7.61 — — 3,293 — — $15.89 $8.19 $10.83 $6.22 — 188,184 1,063 12.67 — — 6.96 — — — $17.01 — — 137,600 1,992 $4.57 15.89 — — — — 6.22 — — — 18,808 $17.01 — –0– $6.8 — — 4.57 — — 15,825 — — $9.99 22,264 — — 6.8 — — — $9.99 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit Value $10.46Number of Units 3,179,376 10.62With No Optional Benefits BOP Unit Value 1,663,940 $10.51EOP Unit Value $10.02 —Number of Units 10.46With — LT5, HDV, and EBP BOP 1,245,396 Unit ValueEOP Unit $10.57 Value $10.53Number of Units 12.10 — — 32,119 10.51 403,604 — $10.57 $11.21 — — 179,509 10.57 18,568 10.53 — — — $10.32 — 29,567 10.57 — — — — — — — — $10.32 — — — — — — — — — — — — — — — — — — — — — — — — — (formerly WFVT Advantage Equity Income) GVIT Developing Markets Wells Fargo Advantage VT Equity Income AIM V.I. — Dynamics SP William Blair International Growth Gartmore Variable Investment Trust — Sub-accountAST Money Market 2005 2004 2003 2002 2001 2000 Appendix A — Condensed Financial Information About Separate Account B ASAP III – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-10 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-11 ————— ————— ————— ————— ————— ————— —————— ————— —————— ————— —————— ————— —————— ————— —————— (2000) (1999) (1999) (1999) (1999) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit Value $11.34 106,295 12.12 $10.68 92,506 11.34 $8.46 59,116 10.68 $11.35 19,405 8.46 $13.14 27,104 11.35 32,969 $13.14 With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit Value EOP Unit ValueNumber of Units $3.32 77,941 3.35 $3.21 $10.64 78,567 3.32EOP Unit ValueNumber $2.24 of Units 42,720 3.21 $4.27 30,448 2.24 $11.08 35,767 $7.98 EOP Unit ValueNumber of Units 4.27 25,984 With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber $7.98 of UnitsWith LT5, HDV, and EBP $10.66 BOP Unit Value EOP Unit ValueNumber of Units $12.31With 130,750 No 14.10 Optional Benefits BOP Unit ValueEOP Unit Value $10.46Number of Units 62,400 $10.92 With 12.31 LT5, HDV, and EBP BOP Unit Value EOP Unit ValueNumber — of 24,847 Units $10.46 $9.57 8.53 — — — — $9.16 $9.26 9.57 92,559 — — — $6.10 69,344 9.16 $8.49 — — 5,427 6.1 $9.35 5,085 8.49 –0– $9.35 With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit Value $12.72 13.30 48,007 $11.85 44,091 12.72 $9.26 48,538 11.85 $11.02 7,204 9.26 $12.38 8,536 11.02 9,786 $12.38 (formerly AIM V.I. — Health Sciences) (merged into Evergreen VA Growth) Sub-accountAIM V.I. — Technology 2005AIM V.I. — Global Health Care 2004 2003 2002AIM V.I. — Financial Services 2001 2000 Evergreen VA — International Equity Evergreen VA — Special Equity ASAP III – Prospectus (continued) continued (1999) (2000) (2002) (2002) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $7.90 76,381 8.43 $7.00 $10.45 201,444 — 7.90 — $5.11 75,543 — — 7.00 — $6.97 2,539 5.11 — — 7,317 $9.3 — 6.97 — — –0– — $9.3 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $9.75With No Optional Benefits 10.00BOP 18,356 Unit ValueEOP Unit ValueNumber of UnitsWith $9.21 LT5, HDV, $10.53 and — EBP 26,849BOP Unit Value 9.75EOP Unit — ValueNumber of Units 15,743 — $9.21 — — $11.47 — 64,775 — $9.04 — $11.36 — — — — — — — — — — $9.04With No — Optional — — — Benefits BOP — Unit Value —EOP — — Unit ValueNumber of Units — — With LT5, HDV, and EBP —BOP — — — Unit Value —EOP — Unit Value — —Number of Units $12.43 — — — 14.67 — 83,233 — — — $12.66 $11.13 — — 63,254 — 12.43 — — — — — 47,272 $12.66 — — — — — — — — — — — — — — — — — — — — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $9.65 165,707 13.51 $9.09 $13.42 87,251 — 9.65 — 28,579 — $9.09 — — — — — — — — — — — — — — — — — — — — — — ProFund VP — Asia 30 Sub-accountEvergreen VA — Omega 2005Evergreen VA Growth Fund 2004 2003ProFund 2002 VP — Europe 30 2001 2000 ProFund VP — Japan Appendix A — Condensed Financial Information About Separate Account B ASAP III – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-12 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-13 (2002) (2002) (2002) (2001) (2002) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $7.73 73,804 9.11 $7.14 $13.53 32,726 — 7.73 — $5.17 20,329 — — 7.14 — $8.38 460 5.17 — — — — 3,279 $8.38 — — — — — — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $12.00 12.13 53,592 $11.02 42,597 — 12.00 $9.51 — — 53,759 $11.02With No Optional — Benefits —BOP Unit ValueEOP — Unit ValueNumber of Units — — —With LT5, HDV, and EBP BOP — Unit Value —EOP Unit Value —Number of Units — — —With No $9.67 Optional — Benefits —BOP Unit Value 9.10 3,866EOP — Unit ValueNumber of Units — — With $9.10 LT5, HDV, and EBP BOP — — Unit $9.70 — 20,288 Value 9.67EOP Unit Value — —Number of Units — 13,935 $10.47 — $9.10 — — 10.31 — 6,876 — $9.71 — — — — 10.47 — $9.76 — 7,578 — — — — — $9.71 3,821 — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $12.11 11.94 44,665 $10.97 $10.13 12,480 — 12.11 — — $10.97 8,886 — — — — — — — — — — — — — — — — — — — — — — ProFund VP — Consumer Services ProFund VP — Biotechnology ProFund VP — Consumer Goods ProFund VP — Basic Materials Sub-accountProFund VP — Banks 2005 2004 2003 2002 2001 2000 ASAP III – Prospectus (continued) continued (2001) (2002) (2001) (2001) (2002) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $8.38With No Optional Benefits BOP 83,943 Unit 8.77 ValueEOP Unit ValueNumber of UnitsWith $8.29 LT5, HDV, $10.49 and — EBP 91,641BOP Unit Value 8.38EOP Unit — ValueNumber of Units $7.15 23,591 $11.27With No Optional — — Benefits 8.29 11.40BOP Unit Value 9,851EOP — Unit Value $9.37Number 1,235 of Units $10.08With LT5, HDV, $10.10 and — EBP 7.15BOP — 11.27 — Unit 22,333 ValueEOP Unit — Value — 2,564Number — of Units — $10.08 $9.37 $18.08 11,186 — — — — 19.18 46,724 — — — — $15.10 — — — $12.76 — — 20,851 — — 18.08 — — — — — — — $15.10 — 8,287 — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $10.77 11.06 43,105 $9.88 $10.56 — 70,662 10.77 — $7.76 32,283 9.88 — — — $9.23 3,258 7.76 — — — — 8,154 $9.23 — — — — — — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $11.62 278,771 15.07 $9.10 186,654 $10.96 — 11.62 — 50,155 — $9.10 — — — — $9.2 — — — — –0– — $9.2 — — — — — — — — — — ProFund VP — Industrials ProFund VP — Internet ProFund VP — Health Care Sub-accountProFund VP — Oil & Gas 2005ProFund VP — Financials 2004 2003 2002 2001 2000 Appendix A — Condensed Financial Information About Separate Account B ASAP III – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-14 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-15 ———— ————— ————— ———— ————— ————— ———— ————— ————— ———— ————— ————— ———— ————— ————— (2002) (2002) (2002) (2001) (2001) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit Value $4.91 109,698 4.91 $5.00 88,720 — 4.91 74,180 — $5.00 $5.92 — — 12,704 — $5.92 — — EOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP $9.47 BOP Unit ValueEOP Unit — ValueNumber of Units $11.90With No Optional Benefits 200,315 14.84BOP Unit ValueEOP Unit ValueNumber of Units $13.38With LT5, 102,230 HDV, $12.04 and — EBP BOP 11.90 Unit ValueEOP Unit — ValueNumber of $9.73 Units 89,687 $17.58 13.38With No Optional Benefits 18.54BOP 31,980 Unit ValueEOP Unit Value 1,179 —Number of Units $14.00 $9.73With LT5, HDV, $11.21 and — EBP 53,006BOP 17.58 Unit ValueEOP Unit — Value $10.65Number — of Units — — 18,355 14.00 $7.23 68,309 $10.78 7.76 — 2,230 — 10.65 $9.58 $10.68 — 52,485 7.23 — EOP Unit — ValueNumber 2,306 of $10.78 Units 17,621 — $9.58 — — — — $10.57 — — — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit Value $8.02 36,753 7.62 $8.95 — 27,913 8.02 24,743 — $8.95 — — — — — — — — Sub-accountProFund VP — Pharmaceuticals 2005ProFund VP — Precious Metals 2004 2003ProFund 2002 VP — Real Estate 2001 2000 ProFund VP — Semiconductor ProFund VP — Technology ASAP III – Prospectus (continued) continued (2001) (2001) (2001) (2001) (2002) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $8.75 213,813 9.77 $7.32 $10.64 79,702 — 8.75 — $6.11 18,902 — — 7.32 — $8.13 491 — 6.11 — — — –0– $8.13 — — — — — — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $5.04 45,279 4.64 $4.41 118,731 — $9.77 5.04 — 30,179 —With — No Optional — $4.41 Benefits BOP Unit Value —EOP Unit ValueNumber of Units $7.11 —With LT5, HDV, and EBP BOP — — Unit Value —EOP Unit Value —Number of Units –0– — $10.65 $7.11With No Optional 384,503 Benefits 10.80 — —BOP Unit ValueEOP Unit — Value — Number of Units $9.91 — 412,259With LT5, $10.15 — HDV, and EBP 10.65BOP Unit — Value — —EOP Unit Value —Number of Units 394,427 — $9.09 $9.91 — — — 35,612 8.86 — — — $10.26 — — — $9.57 16,155 — — 9.09 — — $13.78 — 28,299 — — — — — 10.26 — $11.55 — — — 2,012 — 13.78 — — — — — — — –0– $11.55 — — — — — — — — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $8.25 82,031 8.36 $7.13 $10.28 305,666 — 8.25 — $4.72 56,257 — — 7.13 — $7.48 2,988 — 4.72 — — –0– — $7.48 — — — — — — — — — — ProFund VP — Bull Sub-accountProFund VP — Telecommunications 2005ProFund VP — Utilities 2004 2003 2002 2001 2000 ProFund VP — Bear ProFund VP — Ultra Bull Appendix A — Condensed Financial Information About Separate Account B ASAP III – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-16 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-17 (2002) (2002) (2002) (1999) (2001) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $10.70 181,173 11.75 $9.75 $10.79 — 80,520 10.70 — 24,107 — $9.75 — — — — — — — — — — — — — — — — — — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $5.44 234,956With No Optional 5.38 Benefits BOP Unit ValueEOP Unit ValueNumber of Units $10.59 $5.07 — 293,311With LT5, HDV, and EBP BOP Unit Value — 5.44EOP Unit ValueNumber of Units 257,947 $5.99 —With — — No 77,757 Optional 5.97 $5.07 Benefits BOP Unit Value —EOP Unit Value —Number of Units $5.77 $6.83 —With $9.17 LT5, HDV, and 77,280 EBP BOP — — — Unit Value — 5.99EOP Unit Value —Number of –0– Units $11.03 — $0.87 40,617 7,044,313 $5.77With — No Optional 0.82 — — Benefits — 6.83BOP Unit Value —EOP Unit — Value — 6,405,048Number — of Units 934 $11.08 $0.77 —With LT5, — $11.03 HDV, and EBP BOP — — Unit — Value — — 0.87EOP Unit Value 890,270 — —Number of Units — $11.80 — — — 12.68 — — 86,401 — $0.77 — — — — — — $10.30 $1.25 — $10.63 — — 87,968 11.80 — — — — 58,556 — — — — $4.06 — 59,964 $10.30 3,787 — 1.25 — — — — — — — — $4.06 — — — — — — — — — — — — — — — — — — — — — — — Sub-accountProFund VP — OTC 2005ProFund VP — Short OTC 2004 2003ProFund 2002 VP — UltraOTC 2001 2000 ProFund VP — Mid-Cap Value ProFund VP — Mid-Cap Growth ASAP III – Prospectus (continued) continued (2002) (2002) (2002) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $12.11With No Optional 341,834 Benefits 12.86BOP Unit ValueEOP Unit ValueNumber $10.23 of Units 237,000With LT5, $10.51 — HDV, and EBP 12.11BOP Unit Value —EOP Unit ValueNumber of Units 65,882 — $10.23With — — No $10.35 — Optional Benefits 98,334BOP Unit Value —EOP Unit Value —Number — of Units —With LT5, $10.02 — HDV, and EBP BOP — — Unit — — Value — —EOP Unit Value —Number of Units — — — $10.37 — — — — 131,175 10.55 — — — — — — — — $10.23 — $10.37 — 3,839 — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $12.13With No Optional 150,869 Benefits 14.12BOP Unit ValueEOP Unit ValueNumber of Units $9.62 115,073With LT5, $11.42 — HDV, and EBP 12.13BOP Unit Value —EOP Unit ValueNumber of Units 34,556 $11.22 — $9.62 — — 11.52 53,564 — — — $9.46 — $10.33 123,988 — 11.22 — — — — — 105,751 — — — $9.46 — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — ProFund VP Large-Cap Growth ProFund VP Large-Cap Value Sub-accountProFund VP — UltraMid-Cap 2005ProFund VP — Small-Cap Value 2004 2003ProFund 2002 VP — Small-Cap Growth 2001 2000 Appendix A — Condensed Financial Information About Separate Account B ASAP III – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-18 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-19 (2002) (2002) (1999) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $6.70 302,975 6.09 $7.61 266,169 — $9.11 6.70 — 78,428 — $7.61 — — — — — — — — — — — — — — — — — — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $12.28With No Optional Benefits 12.10BOP 52,922 Unit ValueEOP Unit ValueNumber of Units $9.49With LT5, HDV, $10.69 and 143,175 — EBP BOP 12.28 Unit ValueEOP Unit — ValueNumber of Units $4.82 60,051 $11.91 9.49 — — 119,421 12.83 — $8.5 953 $11.15 4.82 $10.58 42,782 — — 11.91 — — $9.32 — $11.59 –0– 20,058 8.5 11.15 — — — — — 3,174 — — 1,005 $11.59 $9.32 — — — — — — — — — — — — — — — — — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $9.70With No Optional Benefits BOP Unit 8.67 ValueEOP 975 Unit ValueNumber of UnitsWith LT5, HDV, and — EBP — $8.97BOP Unit Value $9.70EOP Unit — Value 571Number of Units $9.55 — — — — 11,578 9.15 — — — — $9.20 — — 7,859 — $9.55 — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — ProFund VP — U.S. Government Plus ProFund VP — Rising Rates Opportunity Sub-accountProFund VP Short Mid-Cap 2005ProFund VP Short Small-Cap 2004 2003ProFund 2002 VP — UltraSmall-Cap 2001 2000 ASAP III – Prospectus (continued) continued ———— ———— ———— ———— ———— ———— ———— ———— ———— ———— ———— ———— ———— ———— (2000) 10 Uncommon Values ® With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No $10.59 — Optional 299,437 Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, $10.49 — HDV, and EBP BOP Unit — — Value — —EOP Unit ValueNumber of Units $4.38With — — No Optional Benefits 14,496 4.35BOP — Unit Value — EOP Unit ValueNumber of Units $3.99With LT5, — HDV, $9.77 and 33,075 EBP BOP — Unit Value 4.38 — —EOP Unit ValueNumber of Units $2.95 $14.64 22,064With — No Optional — 732,182 Benefits 15.50 — 3.99BOP Unit — Value — EOP Unit Value $4.73 23,080Number $13.20 of Units 695,591With LT5, $10.47 — HDV, and EBP 14.64BOP 2.95 — Unit — Value —EOP Unit 31,543 Value $7.44 Number of Units 476,951 — $12.35 $13.20With — 4.73 — No Optional Benefits 11.81 — 32,451 25,001BOP Unit Value — EOP Unit Value —Number $12.05 of Units — $7.44 With — LT5, — HDV, $9.56 and 24,245 EBP 12.35BOP — Unit — Value —EOP Unit ValueNumber of Units — — — 10,069 $12.05 — — — — 290,982 $9.79 — — — — — — — — $9.70 — — — — — — — — — — — — — — — — — — — — — — Sub-accountAccess VP High Yield 2005First Trust 2004 2003First 2002 Trust Managed VIP 2001 2000 First Trust The Dow Target 10 First Trust The Dow Target Dividend Appendix A — Condensed Financial Information About Separate Account B ASAP III – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-20 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-21 With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $16.05With No Optional Benefits BOP Unit 17.46 Value 52,338EOP Unit ValueNumber of Units $12.96With LT5, HDV, and EBP $10.86 22,405BOP — 16.05 Unit ValueEOP Unit Value —Number of Units — $12.96 8,569 $13.34With No Optional — — Benefits BOP Unit 13.72 Value 46,537EOP — Unit ValueNumber — of Units $11.89 — —With LT5, HDV, and EBP $10.51 43,536BOP — — 13.34 — Unit ValueEOP Unit Value — —Number of Units — — — — $11.89 5,532 $12.54 —With — No Optional — — Benefits BOP Unit 12.79 Value 10,385 —EOP — Unit ValueNumber — of Units — — — — With LT5, HDV, — — and — EBP $12.54 $10.78BOP — — — Unit 7,266 ValueEOP Unit — Value — —Number of Units — — — $16.61 — — — — — — — — 130,528 19.64 — — — — — — — — — 33,213 — $16.61 — $11.14 — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — Sub-accountFirst Trust Global Dividend Target 15 2005First Trust S&P Target 24 2004 2003First 2002 Trust NASDAQ Target 15 2001 2000 First Trust Value Line Target 25 ASAP III – Prospectus (continued) continued With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP $10.00 — Unit 649,829 ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP — Unit Value $9.99 — — —EOP Unit Value —Number of UnitsWith No Optional Benefits — 2,586,012 —BOP $10.01 — Unit Value — — —EOP Unit — ValueNumber of UnitsWith LT5, HDV, and EBP BOP $10.00 — Unit — Value — — — —EOP Unit Value — — Number — of Units —With No Optional — Benefits — 2,726,484BOP $10.02 — Unit — Value — — — EOP Unit — ValueNumber of Units — With LT5, HDV, and EBP BOP $10.01 — Unit — Value — — — — EOP Unit Value — — — Number of Units — — — $10.03 — 685,724 — — — — — — $10.02 — — — — — — — — — — — — $10.04 — 115,215 — — — — — — $10.03 — — — — — — — — — — — — — — — — — — — — — — — — — Sub-accountAST Aggressive Asset Allocation Portfolio AST Capital Growth Asset Allocation Portfolio 2005AST Balanced Asset Allocation Portfolio 2004 2003AST Conservative Asset Allocation Portfolio 2002 AST Preservation Asset Allocation Portfolio Appendix A — Condensed Financial Information About Separate Account B APEX II – Prospectus

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-22 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-23 (1997) (1999) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $12.67 5,621,836 $13.84 $10.53 3,227,381 — $11.00 $12.67 — 2,415,394 $8.56 $11.00 — — — 2,569,506 $8.56 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit $15.30 Value 12,141,522Number of $17.54 UnitsWith No Optional Benefits BOP Unit Value 11,265,469EOP $11.16 Unit — $13.39 ValueNumber of Units $15.30 —With LT5, HDV, and EBP BOP Unit Value 5,547,558EOP Unit $12.84 Value 2,013,544Number of $14.36 Units $9.72 $13.39 — —With No Optional Benefits 835,523 —BOP Unit ValueEOP $10.59 1,897,469 Unit — $10.79 ValueNumber of Units $12.84 —With LT5, $9.72 HDV, and EBP BOP Unit — Value — EOP 1,201,268 Unit $13.16 Value 1,907,776Number — of $13.92 Units $8.19 $10.79 — — — 269,995 $10.36 2,276,801 — — $11.30 $13.16 — — $8.19 — — 1,393,001 $9.05 2,134,730 — $9.04 $9.04 $11.30 — — — 969,509 $10.31 2,242,129 — — $9.89 — — $9.05 $9.04 — — 3,292,593 — $6.92 — — $9.89 — 1,970,250 — — — $6.92 — — — — Sub-accountAST JP Morgan International Equity AST William Blair International Growth 2005 2004 2003 2002 APEX II – Prospectus (continued) AST LSV International Value AST MFS Global Equity AST Small-Cap Growth continued (1997) (2000) (1999) (2002) (1997) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit Value $11.98EOP Unit Value 1,385,430 $11.83Number of Units $10.20 1,618,719 — $11.13 $11.98 — $15.42 1,682,193 5,464,856 $16.60 $7.67 — $11.13 — — 639,695 $10.84 4,808,453 — $12.74 $15.42 — $7.67 — — 3,085,373 — $7.64 — $12.74 — — 1,255,415 — — $7.64 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $15.19 1,243,642 $15.68 $10.44 1,541,896 — $12.85 $15.19 — 1,504,296 $9.26 — $12.85 — — 1,492,775 $9.26 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit Value $14.22EOP Unit 11,285,282 Value $14.91Number of Units 10,785,030 $10.53 — $12.42 $14.22 — 10,183,346 $12.99 2,106,236 $12.92 $9.30 — $12.42 — 6,141,523 — 2,143,020 — $10.81 $9.90 $12.99 — $9.30 — — 1,134,865 — $7.66 $10.81 — — — 423,387 — — $7.66 — — — — — Sub-accountAST DeAM Small-Cap Growth AST Federated Aggressive Growth 2005AST 2004 Goldman Sachs Small-Cap Value 2003 2002 Appendix A — Condensed Financial Information About Separate Account B APEX II – Prospectus (continued) AST Small-Cap Value AST DeAM Small-Cap Value

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-24 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-25 (1994) (1993) (2000) (2000) (2000) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $12.38 1,988,252 $12.83 $10.24 2,587,064 — $10.91 $12.38 — 2,513,413 $8.17 $10.91 — — — 1,200,225 $8.17 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit $11.80 Value 5,391,424Number of $12.16 UnitsWith No Optional Benefits BOP Unit ValueEOP $10.46 4,375,813 Unit — $10.31 ValueNumber of Units $11.80 —With LT5, HDV, and EBP BOP Unit ValueEOP 3,027,057 Unit $10.86 Value 5,728,446Number of $12.12 Units $7.97 $10.31 — — — 1,273,118 With No Optional Benefits BOP $11.21 4,715,301 Unit — Value $9.51EOP Unit Value $10.86 —Number of Units $7.97 With LT5, — HDV, — and EBP BOP 3,415,318 Unit $14.51 Value 12,260,007EOP — Unit $15.99 Value $7.41 Number of Units — $9.51 — — 2,175,250 11,461,684 $10.76 — — $12.01 $14.51 — — $7.41 — — 8,530,129 — $9.67 $8.96 $11.10 $12.01 — — 5,118,558 — — — $11.59 — — $9.07 $8.96 $9.67 — 1,798,457 — — — 2,002,166 $6.80 — — $9.07 — — — 658,419 $6.80 — — — — — (formerly AST Gabelli All-Cap Value) (merged into AST Neuberger Berman Mid-Cap Growth) Sub-accountAST Goldman Sachs Mid-Cap Growth AST Neuberger Berman Mid-Cap Growth 2005AST Neuberger Berman 2004 Mid-Cap Value 2003AST Alger All-Cap Growth 2002 AST Mid-Cap Value APEX II – Prospectus (continued) continued ———— ———— ———— ———— ———— (1992) (1995) (1997) (1999) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $9.64 2,531,900 $9.80 $10.64 2,785,100 — $9.45 $9.64 2,053,023 — — $7.67 $9.45 1,349,939 — — $7.67 — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $9.97 5,915,443 $10.43 $10.64 4,529,834 — $9.16 $9.97 4,784,269 — — $7.58 $9.16 2,930,432 — $7.58 — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $9.44 3,925,740 $10.81With No Optional Benefits BOP Unit Value $11.98 2,378,881 —EOP Unit $9.08 ValueNumber $9.44 of UnitsWith LT5, HDV, and EBP BOP Unit Value 2,098,873EOP Unit ValueNumber of Units — — $7.46 $9.08 1,869,353 — $7.46 — $12.26 32,140,125 $12.88 28,117,321 $10.78 — $10.78 — $12.26 20,138,164 $8.32 — $10.78 — 10,144,317 $8.32 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $16.25 3,677,614 $21.00 $11.61 2,040,188 — $12.59 $16.25 2,011,627 $9.59 — $12.59 — 724,670 $9.59 — — — (formerly AST AllianceBernstein Large-Cap Growth) AST T. Rowe Price Large-Cap Growth AST MFS Growth AST Marsico Capital Growth AST Goldman Sachs Concentrated Growth Sub-accountAST T. Rowe Price Natural Resources 2005 2004 2003 2002 Appendix A — Condensed Financial Information About Separate Account B APEX II – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-26 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-27 ———— ———— ———— ———— ———— (1998) (2001) (2001) (1998) (2000) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit Value $12.53EOP Unit 2,585,881 Value $13.47Number of Units With No Optional Benefits BOP 2,351,197 Unit $10.78 Value $10.59 —EOP Unit Value $12.53Number of UnitsWith LT5, HDV, and EBP BOP 1,072,256 Unit ValueEOP Unit Value $10.72 $8.66 Number of $10.78 Units — $11.86 —With — No Optional 664,649 Benefits BOP Unit ValueEOP Unit Value $11.21 — $9.91Number of Units $10.72 $8.66 With 1,620,391 LT5, — HDV, — and EBP BOP Unit ValueEOP Unit Value $12.39Number of 4,311,857 Units $12.86 $7.99 1,387,072 — $9.91 —With No Optional Benefits BOP Unit — ValueEOP 4,643,022 Unit $11.06 Value $10.20 —Number of Units $12.39 965,912 With LT5, HDV, and $7.99 EBP BOP Unit — Value — EOP 3,621,862 Unit Value $18.49Number of 3,749,124 Units $8.76 $20.88 $11.06 — — 6,005,922 4,080,179 — $13.63 $11.88 — $18.49 $8.76 — — 3,097,315 $11.07 $10.08 6,774,078 $11.27 $13.63 — — 1,563,489 6,845,372 — $10.23 $10.28 — $11.07 $10.08 — — 5,442,511 $8.17 $10.23 — — 3,662,406 — $8.17 — — — (merged into AST AllianceBernstein Managed Index 500) Sub-accountAST DeAM Large-Cap Value AST AllianceBernstein Growth + Value 2005 2004AST AllianceBernstein Core Value 2003AST Cohen 2002 & Steers Real Estate AST AllianceBernstein Managed Index 500 APEX II – Prospectus (continued) continued (1997) (1992) (1997) (1993) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $11.46 2,294,531 $11.79 $10.20 2,335,598 — $10.69 $11.46 — 2,045,205 $9.14 — $10.69 — — 1,126,058 $9.14 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $11.19 1,055,033 $11.77 $10.50 1,061,887 — $10.24 $11.19 — 898,161 $8.71 — $10.24 — — 847,517 $8.71 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP $11.46BOP Unit 31,190,346 Value $11.81EOP Unit ValueNumber of Units 25,850,506 $10.15 — $10.50 $11.46 — 21,264,670 $11.17 5,245,458 $8.06 $11.69 — $10.50 — 6,667,373 — $10.44 3,717,848 — $9.83 $11.17 $8.06 — — — — 2,647,064 $8.34 — — $9.83 — 2,110,071 — — $8.34 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $11.57 4,205,655 $11.90 $10.22 4,670,846 — $10.45 $11.57 — 2,115,438 $8.25 — $10.45 — — 1,751,136 $8.25 — — — — — (formerly AST Hotchkis & Wiley Large-Cap Value) AST American Century Strategic Balanced AST Large-Cap Value AST Global Allocation Sub-accountAST American Century Income & Growth AST AllianceBernstein Growth & Income 2005 2004 2003 2002 Appendix A — Condensed Financial Information About Separate Account B APEX II – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-28 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-29 ———— ———— ———— ———— ———— (1994) (2000) (1994) (1994) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $12.13 4,192,626 $12.49 $10.24 3,551,315 — $11.09 $12.13 2,243,566 $9.09 — $11.09 — 921,329 $9.09 — — With No Optional Benefits BOP Unit — ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $11.31 22,436,395 $11.40 33,208,749 $10.04 — $10.95 $11.31 26,287,388 $10.57 — $10.95 — 20,544,075 $10.57 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, $13.45 and EBP BOP Unit 6,261,824 Value $12.64EOP Unit ValueNumber of Units With No Optional 4,717,822 — Benefits $12.59 $9.34BOP Unit Value $13.45EOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP 2,962,471BOP Unit Value $12.69 $11.34 EOP Unit 9,658,908 Value $12.62 $12.59 —Number of — Units 1,739,313 13,717,125 — $11.61 $9.75 $12.69 $11.34 — — 12,201,163 $12.26 12,427,806 $12.20 $9.71 $11.61 — — 5,592,940 8,369,008 — — $11.61 $9.84 $12.26 $9.71 — — 7,751,236 $9.94 $11.61 — — 4,146,530 — $9.94 — — — (formerly AST Goldman Sachs High Yield Bond) Sub-accountAST T. Rowe Price Asset Allocation 2005 2004 2003 2002 APEX II – Prospectus (continued) AST T. Rowe Price Global Bond AST High Yield AST Lord Abbett Bond-Debenture AST PIMCO Total Return Bond continued ———— ———— ———— ———— ———— (1999) (1995) (1996) (1992) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $10.55 28,031,653 $10.54 21,299,789 — $10.51 $9.94 $10.55 15,242,856 $10.34 $10.51 — — 11,274,642 $10.34 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, $10.53 and EBP BOP Unit Value $12.05 672,243EOP Unit ValueNumber of Units $11.18 —With No Optional 269,671 Benefits $10.53 —BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, $16.02 and EBP BOP Unit 3,395,891 Value $20.72 — —EOP Unit Value —Number — of — Units $11.93 2,103,950 — $13.60 $16.02 — — — — 1,763,660 $11.18 $8.66 $11.59 534,649 — $13.60 — — 283,466 $10.08 — $10.23 590,808 $11.18 $8.66 — — $8.25 314,757 — $10.23 — — 196,720 $8.25 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units 42,442,274 $9.78 $9.88 29,870,576 — $9.99 $9.86 $9.78 32,730,501 — $9.96 — 36,255,772 $9.86 — — $9.96 — — GVIT Developing Markets (formerly WFVT Advantage Equity Income) Sub-accountAST PIMCO Limited Maturity Bond 2005 2004 2003 2002 Appendix A — Condensed Financial Information About Separate Account B APEX II – Prospectus (continued) AST Money Market SP William Blair International Growth Gartmore Variable Investment Trust Wells Fargo Advantage VT Equity Income

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-30 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-31 ———— ———— ———— ———— ———— (2000) (1999) (1999) (1999) (1999) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $10.64 1,131,375 $11.31 $10.05 937,586 $11.04 — $10.64 698,364 $8.00 $10.05 — — 475,873 $8.00 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $10.72 $11.67 602,064 $9.61 $10.80 — 668,032 $10.72 889,464 $7.09 $9.61 — — 543,762 $7.09 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $8.09 453,391 $8.13 $10.60 $7.87 — 512,424 $8.09 578,651 $5.50 — — $7.87With No Optional Benefits BOP Unit ValueEOP 293,307 Unit ValueNumber of UnitsWith LT5, $5.50 HDV, and EBP — — BOP Unit ValueEOP Unit ValueNumber of Units — $13.66 $15.59 689,816 $11.65 $10.88 — 414,631 $13.66 $8.15 189,143 $11.65 — — 113,389 $8.15 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $11.94 1,042,992 $12.43 $11.17 585,185 $10.62 — $11.94 607,265 $8.76 $11.17 — — 366,258 $8.76 — — — (formerly AIM V.I. — Health Sciences) Sub-accountAIM V.I. — Dynamics AIM V.I. — Technology 2005AIM V.I. — Global Health Care 2004 2003AIM V.I. — Financial 2002 Services Evergreen VA — International Equity APEX II – Prospectus (continued) continued (1999) (1999) (2000) (2002) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $12.17 1,133,421 $12.94 1,812,435 $10.83 $10.41 — $12.17 — 2,116,400 $7.93 $10.83 — — — 292,396 $7.93 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber $11.58 of Units $10.31With No Optional Benefits —BOP Unit ValueEOP Unit Value $11.12Number — of Units $9.26 $11.58With LT5, HDV, and — EBP BOP 702,642 Unit ValueEOP Unit ValueNumber $11.29 of Units $7.44 $11.53 281,775 $11.12 — — 815,621 — $10.71 $10.50 — 570,123 $11.29 $7.44 127,728 — — — — $7.78 $11.44 — 404,789 606,614 $10.71 — —With No Optional Benefits BOP Unit Value —EOP Unit Value — Number $11.33 — of Units 39,943 — With LT5, $7.78 HDV, and — EBP — BOP — Unit Value — — EOP Unit ValueNumber of Units — — — — — — — — $12.30 — 1,723,105 $14.45 — $12.57 $11.10 — 896,010 $12.30 — — 942,605 $7.75 $12.57 — — — 281,993 $7.75 — — — — — (merged into Evergreen VA Growth) ProFund VP — Asia 30 Sub-accountEvergreen VA — Special Equity Evergreen VA — Omega 2005Evergreen VA 2004 Growth Fund 2003ProFund VP — Europe 2002 30 Appendix A — Condensed Financial Information About Separate Account B APEX II – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-32 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-33 (2002) (2002) (2001) (2002) (2002) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $11.87 $11.96 681,692 $10.95 — 529,237 $9.48 $11.87 — 1,512,864 $8.46 $10.95 — — — 76,331 $8.46 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $11.98 $11.77 351,876 $10.90 $10.10 — 229,711 $11.98 — $8.56 93,067 $10.90 — — — 101,136 $8.56 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $9.55 3,413,955 $13.31 710,879 $13.38 $9.03 — $9.55 — 426,718 $7.24 — —With No $9.03 Optional Benefits BOP Unit Value —EOP Unit Value 65,845 Number of UnitsWith LT5, HDV, and EBP $7.24 BOP Unit Value — — EOP Unit ValueNumber of Units — — — $10.52 $12.34 697,686 $9.75 $13.48 — 757,678 $10.52 — 208,971 $7.09 — $9.75 — — 130,082 $7.09 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $9.56 $8.97 86,431 $9.04 — $9.66 430,620 $9.56 — 136,269 $7.25 — — $9.04 — 128,022 $7.25 — — — — — Sub-accountProFund VP — Japan 2005ProFund VP — Basic Materials 2004 2003ProFund VP — Biotechnology 2002 APEX II – Prospectus (continued) ProFund VP — Banks ProFund VP — Consumer Services continued (2002) (2001) (2002) (2001) (2001) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $9.23 2,175,821 $9.63 1,318,525 $10.46 — $9.17 $9.23 — $11.15 707,449 $11.23 211,677 $7.94 — — $9.17 — 388,508 $10.01 $10.06 — 253,411 $11.15 — $7.94 — — — $7.93 318,339 $10.01 — — — — 12,642 — $7.93 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $12.19 $12.46 616,873 $11.23 $10.53 — 553,342 $12.19 — $8.85 398,159 $11.23 — — — 221,377 $8.85 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber $10.36 of Units $10.15 161,037 — $9.64 $9.73 369,007 $10.36 — $13.33 2,573,776 $17.22 $8.28 58,425 $9.64 — — — 1,856,882 $10.48 $10.92 — 148,446 $13.33 $8.28 — — — 1,225,844 — $8.71 $10.48 — — — 299,833 — — $8.71 — — — — — ProFund VP — Industrials ProFund VP — Health Care Sub-accountProFund VP — Consumer Goods ProFund VP — Oil & Gas 2005ProFund VP — Financials 2004 2003 2002 Appendix A — Condensed Financial Information About Separate Account B APEX II – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-34 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-35 ———— ———— ———— ———— ———— (2002) (2002) (2002) (2001) (2002) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $17.89 $18.90 467,320With No Optional Benefits BOP Unit ValueEOP Unit $15.00 Value $12.71 —Number of 992,879 Units $17.89With LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $8.57 206,876 $15.00 — —With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber 306,572 of UnitsWith LT5, $8.57 HDV, and EBP BOP Unit — Value — EOP Unit Value $11.77Number of 2,426,530 Units $14.62With No Optional Benefits BOP Unit ValueEOP 1,479,384 Unit — $13.29 Value $12.00 —Number of Units $11.77With LT5, HDV, and EBP BOP Unit ValueEOP 1,329,806 Unit Value $16.15Number of Units $9.70 $16.96 501,989 $13.29 — — 1,175,651 $12.91 $11.17 — 1,816,706 $16.15 $9.70 — — $7.15 462,906 $9.86 746,085 $7.64 $12.91 — — — $10.65 — 441,318 $9.51 694,352 $7.15 $9.86 — — 423,958 $5.14 — — $9.51 — 93,241 — $5.14 — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $7.93 515,768 $7.51 — $9.44 $8.89 527,336 $7.93 266,978 $8.56 — — $8.89 136,559 $8.56 — — — Sub-accountProFund VP — Internet ProFund VP — Pharmaceuticals 2005ProFund VP — Precious 2004 Metals 2003ProFund VP — Real Estate 2002 ProFund VP — Semiconductor APEX II – Prospectus (continued) continued ———— ———— ———— ———— ———— (2001) (2001) (2001) (2001) (2002) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $8.48 577,739 $8.45With No Optional Benefits BOP Unit ValueEOP Unit Value $10.54 —Number $8.66 of 727,580 Units $8.48With LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units 497,972 $6.03 — — $8.66 254,131 — $6.03 — $11.13 1,996,877 $12.37 1,060,939 — $10.60 — $9.34 $11.13 618,427 $7.83 — $9.34 — 521,419 $7.83 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $8.19 456,586 $7.52With No Optional Benefits BOP Unit ValueEOP Unit Value — $9.74Number $7.21 of 460,848 Units $8.19With LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units 398,350 $7.15 — —With $7.21 No Optional Benefits BOP Unit ValueEOP Unit ValueNumber 272,408 of UnitsWith LT5, HDV, and EBP BOP Unit $7.15 Value — —EOP Unit Value $10.53Number of 7,846,866 Units $10.64 8,215,357 $10.12 — — $9.84 $10.53 3,563,562 $7.45 2,169,662 $7.97 $7.23 — $9.84 — 954,792 1,202,243 — $9.54 $8.44 $7.45 $7.97 — — 1,886,515 $11.38 — — $8.44 1,532,543 — $11.38 — — — Sub-accountProFund VP — Technology ProFund VP — Telecommunications 2005ProFund VP — Utilities 2004 2003ProFund VP — Bull 2002 ProFund VP — Bear Appendix A — Condensed Financial Information About Separate Account B APEX II – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-36 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-37 ———— ———— ———— ———— ———— (2002) (2002) (2001) (1999) (2001) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit Value $9.94Number of 2,467,486 Units $9.80With No Optional Benefits BOP Unit ValueEOP 4,885,351 Unit Value $10.55 —Number $9.32 of Units $9.94With LT5, HDV, and EBP BOP Unit ValueEOP 4,445,234 Unit Value $5.93Number of 2,494,108 Units $5.88 $6.45 — —With $9.32 No Optional Benefits 1,346,852 BOP Unit ValueEOP Unit Value — 908,064 $9.14Number $6.78 of Units $5.93With LT5, HDV, and EBP BOP Unit — $6.45 Value — EOP Unit Value 1,535,439 $7.89Number of 4,740,165 Units $11.00 $7.47 — — $6.78 433,181 6,592,447 — $11.04 — $7.03 $7.89 $11.00 — — 3,410,589 $11.67 2,164,543 $12.49 $3.53 — — $7.03 1,003,123 2,632,869 $10.23 $10.60 — — $11.67 — $3.53 — 1,455,513 $7.66 $10.23 — — 438,387 — $7.66 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $11.76 1,158,025 $11.87 2,817,803 $10.20 $10.25 — $11.76 1,431,345 $6.78 $10.20 — — 297,435 $6.78 — — — Sub-accountProFund VP — Ultra Bull ProFund VP — OTC 2005ProFund VP — Short 2004 OTC 2003ProFund VP — UltraOTC 2002 ProFund VP — Mid-Cap Value APEX II – Prospectus (continued) continued (2002) (2002) (2002) (2002) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber $11.99 of Units 1,935,487 $13.91 3,106,849 $11.38 — $9.55 $11.99 — 1,112,311 $11.10 1,398,442 $11.35 $5.71 — $9.55 — — 477,953 4,088,760 $10.30 — $9.39 $11.10 $5.71 — — — 5,144,632 — $7.09 — $9.39 — — 994,778 — — $7.09 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $10.58 5,059,311 $11.58 2,220,901 $10.76 — $9.69 $10.58 — 1,009,867 $7.70 — $9.69 —With No Optional Benefits BOP Unit Value — 439,054 EOP Unit ValueNumber of UnitsWith LT5, HDV, and $7.70 EBP BOP Unit Value — — EOP Unit ValueNumber of Units —With No Optional Benefits BOP Unit ValueEOP Unit — ValueNumber of Units — With LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber $11.98 of Units 4,579,887 $12.67 4,677,820 $10.16 $10.48 — $11.98 — 3,868,951 $10.37 2,620,748 $7.69 $10.30 $10.16 — — — 772,260 — $9.98 72,725 $10.37 — $7.69 — — — — — — — — — — — — — — — — — — — ProFund VP — Small-Cap Value ProFund VP — Small-Cap Growth ProFund VP — UltraMid-Cap ProFund VP Large-Cap Growth Sub-accountProFund VP – Mid-Cap Growth 2005 2004 2003 2002 Appendix A — Condensed Financial Information About Separate Account B APEX II – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-38 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-39 ———— ———— ———— ———— ———— (2002) (1999) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit Value $15.52Number of Units $15.23 816,755 $12.04 $10.66 — 5,098,565 $15.52 $11.79 1,702,558 2,312,868 $6.14 $12.64 $12.04 — — 212,085 1,051,158 $11.08 $10.54 — $11.79 $6.14 — — 731,470 $11.56 $11.08 — — 2,486,854 — $11.56 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit Value $10.37Number of 2,141,308 Units $10.51With No Optional Benefits BOP Unit ValueEOP Unit Value $10.20 — 159,605Number of Units $10.37 —With LT5, HDV, and EBP BOP Unit ValueEOP Unit Value $9.70Number of Units 364,782 $8.64 — — — — — — $8.94 39,360 — $9.70 — — — — $9.54 220,843 $9.11 — — — — — — — $9.17 136,809 — $9.54 — — — — — — — — — — — — — — — Sub-accountProFund VP Large-Cap Value ProFund VP Short Mid-Cap 2005ProFund VP Short Small-Cap 2004 2003ProFund VP — UltraSmall-Cap 2002 ProFund VP — U.S. Government Plus APEX II – Prospectus (continued) continued (2002) (2000) 10 Uncommon Values ® With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber $10.03 of Units $9.92 87,726With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber — of $9.16 Units $9.74With $10.03 LT5, 91,924 HDV, and — EBP BOP Unit ValueEOP Unit ValueNumber $11.85 of Units $12.84 590,605 $6.80 — 66,435 — $9.16 — $10.83 — 311,233 $11.85 — 19,826 — $6.80 — — $11.32 — 2,420,873 $11.94 — — — — — — — 1,777,316 $10.43 — $11.32 — — — — — — — — — — — — — — — — — — — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $6.63 3,415,324 $6.00 5,314,528 — $9.08 $7.56 $6.63 — 1,817,924 $10.56 — 899,141 $8.02 — — $7.56 — 165,792 $10.47 — — — $8.02 — — — — — — — — — — — — — First Trust Global Dividend Target 15 First Trust Managed VIP Access VP High Yield First Trust Sub-accountProFund VP — Rising Rates Opportunity 2005 2004 2003 2002 Appendix A — Condensed Financial Information About Separate Account B APEX II – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-40 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-41 With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $10.66With No Optional Benefits $10.83 134,177BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and $10.75 EBP —BOP $10.66 — Unit 82,809 ValueEOP Unit Value —Number of Units $10.75With No Optional — Benefits — $11.01 — 304,840BOP — — Unit ValueEOP Unit Value —Number of UnitsWith LT5, HDV, and $10.48 EBP — 173,851BOP $10.75 — Unit Value — — — — EOP Unit Value —Number of Units — $10.48With No — Optional — Benefits — 194,864BOP $9.98 — — Unit Value — EOP Unit Value —Number of Units — With LT5, HDV, and EBP — 155,695BOP $9.53 — Unit Value $10.48 — — — — EOP Unit Value —Number of Units — — 1,240,527 — — — $9.76 — — — — — — $9.67 — — — — — — — — — $12.59 1,068,339 $14.82 — — — — — — — — 389,792 $11.11 — $12.59 — — — — — — — — — — — — — — — — — — — — — — Sub-accountFirst Trust NASDAQ Target 15 First Trust S&P Target 24 2005First Trust The Dow Target 10 2004 2003First Trust The Dow Target Dividend 2002 First Trust Value Line Target 25 APEX II – Prospectus (continued) continued With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP $10.00 — Unit 649,829 ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP — Unit Value $9.99 — — —EOP Unit Value —Number of UnitsWith No Optional Benefits — 2,586,012 —BOP $10.01 — Unit Value — — —EOP Unit — ValueNumber of UnitsWith LT5, HDV, and EBP BOP $10.00 — Unit — Value — — — —EOP Unit Value — — Number — of Units —With No Optional — Benefits — 2,726,484BOP $10.02 — Unit — Value — — — EOP Unit — ValueNumber of Units — With LT5, HDV, and EBP BOP $10.01 — Unit — Value — — — — EOP Unit Value — — — Number of Units — — — $10.03 — 685,724 — — — — — — $10.02 — — — — — — — — — — — — $10.04 — 115,215 — — — — — — $10.03 — — — — — — — — — — — — — — — — — — — — — — — — — Sub-accountAST Aggressive Asset Allocation Portfolio AST Capital Growth Asset Allocation Portfolio 2005AST Balanced Asset Allocation Portfolio 2004 2003AST Conservative Asset Allocation Portfolio 2002 AST Preservation Asset Allocation Portfolio Appendix A — Condensed Financial Information About Separate Account B ASXT Six – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-42 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-43 (1997) (1999) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $12.67 5,621,836 $13.84 $10.53 3,227,381 — $11.00 $12.67 — 2,415,394 $8.56 $11.00 — — — 2,569,506 $8.56 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit $15.30 Value 12,141,522Number of $17.54 UnitsWith No Optional Benefits BOP Unit Value 11,265,469EOP $11.16 Unit — $13.39 ValueNumber of Units $15.30 —With LT5, HDV, and EBP BOP Unit Value 5,547,558EOP Unit $12.84 Value 2,013,544Number of $14.36 Units $9.72 $13.39 — —With No Optional Benefits 835,523 —BOP Unit ValueEOP $10.59 1,897,469 Unit — $10.79 ValueNumber of Units $12.84 —With LT5, $9.72 HDV, and EBP BOP Unit — Value — EOP 1,201,268 Unit $13.16 Value 1,907,776Number — of $13.92 Units $8.19 $10.79 — — — 269,995 $10.36 2,276,801 — — $11.30 $13.16 — — $8.19 — — 1,393,001 $9.05 2,134,730 — $9.04 $9.04 $11.30 — — — 969,509 $10.31 2,242,129 — — $9.89 — — $9.05 $9.04 — — 3,292,593 — $6.92 — — $9.89 — 1,970,250 — — — $6.92 — — — — Sub-accountAST JP Morgan International Equity AST William Blair International Growth 2005 2004 2003 2002 ASXT Six – Prospectus (continued) AST LSV International Value AST MFS Global Equity AST Small-Cap Growth continued (1997) (2000) (1999) (2002) (1997) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit Value $11.98EOP Unit Value 1,385,430 $11.83Number of Units $10.20 1,618,719 — $11.13 $11.98 — $15.42 1,682,193 5,464,856 $16.60 $7.67 — $11.13 — — 639,695 $10.84 4,808,453 — $12.74 $15.42 — $7.67 — — 3,085,373 — $7.64 — $12.74 — — 1,255,415 — — $7.64 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $15.19 1,243,642 $15.68 $10.44 1,541,896 — $12.85 $15.19 — 1,504,296 $9.26 — $12.85 — — 1,492,775 $9.26 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit Value $14.22EOP Unit 11,285,282 Value $14.91Number of Units 10,785,030 $10.53 — $12.42 $14.22 — 10,183,346 $12.99 2,106,236 $12.92 $9.30 — $12.42 — 6,141,523 — 2,143,020 — $10.81 $9.90 $12.99 — $9.30 — — 1,134,865 — $7.66 $10.81 — — — 423,387 — — $7.66 — — — — — Sub-accountAST DeAM Small-Cap Growth AST Federated Aggressive Growth 2005AST 2004 Goldman Sachs Small-Cap Value 2003 2002 Appendix A — Condensed Financial Information About Separate Account B ASXT Six – Prospectus (continued) AST Small-Cap Value AST DeAM Small-Cap Value

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-44 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-45 (1994) (1993) (2000) (2000) (2000) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $12.38 1,988,252 $12.83 $10.24 2,587,064 — $10.91 $12.38 — 2,513,413 $8.17 $10.91 — — — 1,200,225 $8.17 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit $11.80 Value 5,391,424Number of $12.16 UnitsWith No Optional Benefits BOP Unit ValueEOP $10.46 4,375,813 Unit — $10.31 ValueNumber of Units $11.80 —With LT5, HDV, and EBP BOP Unit ValueEOP 3,027,057 Unit $10.86 Value 5,728,446Number of $12.12 Units $7.97 $10.31 — — — 1,273,118 With No Optional Benefits BOP $11.21 4,715,301 Unit — Value $9.51EOP Unit Value $10.86 —Number of Units $7.97 With LT5, — HDV, — and EBP BOP 3,415,318 Unit $14.51 Value 12,260,007EOP — Unit $15.99 Value $7.41 Number of Units — $9.51 — — 2,175,250 11,461,684 $10.76 — — $12.01 $14.51 — — $7.41 — — 8,530,129 — $9.67 $8.96 $11.10 $12.01 — — 5,118,558 — — — $11.59 — — $9.07 $8.96 $9.67 — 1,798,457 — — — 2,002,166 $6.80 — — $9.07 — — — 658,419 $6.80 — — — — — (formerly AST Gabelli All-Cap Value) (merged into AST Neuberger Berman Mid-Cap Growth) Sub-accountAST Goldman Sachs Mid-Cap Growth AST Neuberger Berman Mid-Cap Growth 2005AST Neuberger Berman 2004 Mid-Cap Value 2003AST Alger All-Cap Growth 2002 AST Mid-Cap Value ASXT Six – Prospectus (continued) continued ———— ———— ———— ———— ———— (1992) (1995) (1997) (1999) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $9.64 2,531,900 $9.80 $10.64 2,785,100 — $9.45 $9.64 2,053,023 — — $7.67 $9.45 1,349,939 — — $7.67 — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $9.97 5,915,443 $10.43 $10.64 4,529,834 — $9.16 $9.97 4,784,269 — — $7.58 $9.16 2,930,432 — $7.58 — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $9.44 3,925,740 $10.81With No Optional Benefits BOP Unit Value $11.98 2,378,881 —EOP Unit $9.08 ValueNumber $9.44 of UnitsWith LT5, HDV, and EBP BOP Unit Value 2,098,873EOP Unit ValueNumber of Units — — $7.46 $9.08 1,869,353 — $7.46 — $12.26 32,140,125 $12.88 28,117,310 $10.78 — $10.78 — $12.26 20,138,164 $8.32 — $10.78 — 10,144,317 $8.32 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $16.25 3,677,614 $21.00 $11.61 2,040,188 — $12.59 $16.25 2,011,627 $9.59 — $12.59 — 724,670 $9.59 — — — (formerly AST AllianceBernstein Large-Cap Growth) AST T. Rowe Price Large-Cap Growth AST MFS Growth AST Marsico Capital Growth AST Goldman Sachs Concentrated Growth Sub-accountAST T. Rowe Price Natural Resources 2005 2004 2003 2002 Appendix A — Condensed Financial Information About Separate Account B ASXT Six – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-46 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-47 ———— ———— ———— ———— ———— (1998) (2001) (2001) (1998) (2000) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit Value $12.53EOP Unit 2,585,881 Value $13.47Number of Units With No Optional Benefits BOP 2,351,197 Unit $10.78 Value $10.59 —EOP Unit Value $12.53Number of UnitsWith LT5, HDV, and EBP BOP 1,072,256 Unit ValueEOP Unit Value $10.72 $8.66 Number of $10.78 Units — $11.86 —With — No Optional 664,649 Benefits BOP Unit ValueEOP Unit Value $11.21 — $9.91Number of Units $10.72 $8.66 With 1,620,391 LT5, — HDV, — and EBP BOP Unit ValueEOP Unit Value $12.39Number of 4,311,857 Units $12.86 $7.99 1,387,072 — $9.91 —With No Optional Benefits BOP Unit — ValueEOP 4,643,022 Unit $11.06 Value $10.20 —Number of Units $12.39 965,912 With LT5, HDV, and $7.99 EBP BOP Unit — Value — EOP 3,621,862 Unit Value $18.49Number of 3,749,124 Units $8.76 $20.88 $11.06 — — 6,005,922 4,080,179 — $13.63 $11.88 — $18.49 $8.76 — — 3,097,315 $11.07 $10.08 6,774,078 $11.27 $13.63 — — 1,563,489 6,845,372 — $10.23 $10.28 — $11.07 $10.08 — — 5,442,511 $8.17 $10.23 — — 3,662,406 — $8.17 — — — (merged into AST AllianceBernstein Managed Index 500) Sub-accountAST DeAM Large-Cap Value AST AllianceBernstein Growth + Value 2005 2004AST AllianceBernstein Core Value 2003AST Cohen 2002 & Steers Real Estate AST AllianceBernstein Managed Index 500 ASXT Six – Prospectus (continued) continued (1997) (1992) (1997) (1993) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $11.46 2,294,531 $11.79 $10.20 2,335,598 — $10.69 $11.46 — 2,045,205 $9.14 — $10.69 — — 1,126,058 $9.14 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $11.19 1,055,033 $11.77 $10.50 1,061,887 — $10.24 $11.19 — 898,161 $8.71 — $10.24 — — 847,517 $8.71 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP $11.46BOP Unit 31,190,346 Value $11.81EOP Unit ValueNumber of Units 25,850,506 $10.15 — $10.50 $11.46 — 21,264,670 $11.17 5,245,455 $8.06 $11.69 — $10.50 — 6,667,373 — $10.44 3,717,848 — $9.83 $11.17 $8.06 — — — — 2,647,064 $8.34 — — $9.83 — 2,110,071 — — $8.34 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $11.57 4,205,655 $11.90 $10.22 4,670,846 — $10.45 $11.57 — 2,115,438 $8.25 — $10.45 — — 1,751,136 $8.25 — — — — — (formerly AST Hotchkis & Wiley Large-Cap Value) AST American Century Strategic Balanced AST Large-Cap Value AST Global Allocation Sub-accountAST American Century Income & Growth AST AllianceBernstein Growth & Income 2005 2004 2003 2002 Appendix A — Condensed Financial Information About Separate Account B ASXT Six – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-48 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-49 ———— ———— ———— ———— ———— (1994) (2000) (1994) (1994) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $12.13 4,192,626 $12.49 $10.24 3,551,315 — $11.09 $12.13 2,243,566 $9.09 — $11.09 — 921,329 $9.09 — — With No Optional Benefits BOP Unit — ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $11.31 22,436,395 $11.40 33,208,749 $10.04 — $10.95 $11.31 26,287,388 $10.57 — $10.95 — 20,544,075 $10.57 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, $13.45 and EBP BOP Unit 6,261,824 Value $12.64EOP Unit ValueNumber of Units With No Optional 4,717,822 — Benefits $12.59 $9.34BOP Unit Value $13.45EOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP 2,962,471BOP Unit Value $12.69 $11.34 EOP Unit 9,658,908 Value $12.62 $12.59 —Number of — Units 1,739,313 13,717,125 — $11.61 $9.75 $12.69 $11.34 — — 12,201,163 $12.26 12,427,806 $12.20 $9.71 $11.61 — — 5,592,940 8,369,008 — — $11.61 $9.84 $12.26 $9.71 — — 7,751,236 $9.94 $11.61 — — 4,146,530 — $9.94 — — — (formerly AST Goldman Sachs High Yield Bond) Sub-accountAST T. Rowe Price Asset Allocation 2005 2004 2003 2002 ASXT Six – Prospectus (continued) AST T. Rowe Price Global Bond AST High Yield AST Lord Abbett Bond-Debenture AST PIMCO Total Return Bond continued ———— ———— ———— ———— ———— (1999) (1995) (1996) (1992) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $10.55 28,031,653 $10.54 21,299,789 — $10.51 $9.94 $10.55 15,242,856 $10.34 $10.51 — — 11,274,642 $10.34 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, $10.53 and EBP BOP Unit Value $12.05 672,243EOP Unit ValueNumber of Units $11.18 —With No Optional 269,671 Benefits $10.53 —BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, $16.02 and EBP BOP Unit 3,395,891 Value $20.72 — —EOP Unit Value —Number — of — Units $11.93 2,103,950 — $13.60 $16.02 — — — — 1,763,660 $11.18 $8.66 $11.59 534,649 — $13.60 — — 283,466 $10.08 — $10.23 590,808 $11.18 $8.66 — — $8.25 314,757 — $10.23 — — 196,720 $8.25 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units 42,442,274 $9.78 $9.88 29,870,576 — $9.99 $9.86 $9.78 32,730,501 — $9.96 — 36,255,772 $9.86 — — $9.96 — GVIT Developing Markets (formerly WFVT Advantage Equity Income) Sub-accountAST PIMCO Limited Maturity Bond 2005 2004 2003 2002 Appendix A — Condensed Financial Information About Separate Account B ASXT Six – Prospectus (continued) AST Money Market SP William Blair International Growth Gartmore Variable Investment Trust — Wells Fargo Advantage VT Equity Income

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-50 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-51 ———— ———— ———— ———— ———— (2000) (1999) (1999) (1999) (1999) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $10.64 1,131,375 $11.31 $10.05 937,586 $11.04 — $10.64 698,364 $8.00 $10.05 — — 475,873 $8.00 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $10.72 $11.67 602,064 $9.61 $10.80 — 668,032 $10.72 889,464 $7.09 $9.61 — — 543,762 $7.09 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $8.09 453,391 $8.13 $10.60 $7.87 — 512,424 $8.09 578,651 $5.50 — — $7.87With No Optional Benefits BOP Unit ValueEOP 293,307 Unit ValueNumber of UnitsWith LT5, $5.50 HDV, and EBP — — BOP Unit ValueEOP Unit ValueNumber of Units — $13.66 $15.59 689,816 $11.65 $10.88 — 414,631 $13.66 $8.15 189,143 $11.65 — — 113,389 $8.15 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $11.94 1,042,992 $12.43 $11.17 585,185 $10.62 — $11.94 607,265 $8.76 $11.17 — — 366,258 $8.76 — — — (formerly AIM V.I. — Health Sciences) Sub-accountAIM V.I. — Dynamics AIM V.I. — Technology 2005AIM V.I. — Global Health Care 2004 2003AIM V.I. — Financial 2002 Services Evergreen VA — International Equity ASXT Six – Prospectus (continued) continued (1999) (1999) (2000) (2002) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $12.17 1,133,421 $12.94 1,812,435 $10.83 $10.41 — $12.17 — 2,116,400 $7.93 $10.83 — — — 292,396 $7.93 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber $11.58 of Units $10.31With No Optional Benefits —BOP Unit ValueEOP Unit Value $11.12Number — of Units $9.26 $11.58With LT5, HDV, and — EBP BOP 702,642 Unit ValueEOP Unit ValueNumber $11.29 of Units $7.44 $11.53 281,775 $11.12 — — 815,621 — $10.71 $10.50 — 570,123 $11.29 $7.44 127,728 — — — — $7.78 $11.44 — 404,789 606,614 $10.71 — —With No Optional Benefits BOP Unit Value —EOP Unit Value — Number $11.33 — of Units 39,943 — With LT5, $7.78 HDV, and — EBP —BOP — — Unit Value — — EOP Unit ValueNumber of Units — — — — — — — — — — — $12.30 — — — — 1,723,105 $14.45 — $12.57 $11.10 — 896,010 $12.30 — — 942,605 $7.75 $12.57 — — — 281,993 $7.75 — — — — — (merged into Evergreen VA Growth) ProFund VP — Asia 30 Sub-accountEvergreen VA — Special Equity Evergreen VA — Omega 2005Evergreen VA 2004 Growth Fund 2003ProFund VP — Europe 2002 30 Appendix A — Condensed Financial Information About Separate Account B ASXT Six – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-52 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-53 (2002) (2002) (2001) (2002) (2002) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $11.87 $11.96 681,692 $10.95 — 529,237 $9.48 $11.87 — 1,512,864 $8.46 $10.95 — — — 76,331 $8.46 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $11.98 $11.77 351,876 $10.90 $10.10 — 229,711 $11.98 — $8.56 93,067 $10.90 — — — 101,136 $8.56 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $9.55 3,413,955 $13.31 710,879 $13.38 $9.03 — $9.55 — 426,718 $7.24 — —With No $9.03 Optional Benefits BOP Unit Value —EOP Unit Value 65,845 Number of UnitsWith LT5, HDV, and EBP $7.24 BOP Unit Value — — EOP Unit ValueNumber of Units — — — $10.52 $12.34 697,686 $9.75 $13.48 — 757,678 $10.52 — 208,971 $7.09 — $9.75 — — 130,082 $7.09 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $9.56 $8.97 86,431 $9.04 — $9.66 430,620 $9.56 — 136,269 $7.25 — — $9.04 — 128,022 $7.25 — — — — — Sub-accountProFund VP — Japan 2005ProFund VP — Basic Materials 2004 2003ProFund VP — Biotechnology 2002 ASXT Six – Prospectus (continued) ProFund VP — Banks ProFund VP — Consumer Services continued (2002) (2001) (2002) (2001) (2001) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $9.23 2,175,821 $9.63 1,318,525 $10.46 — $9.17 $9.23 — $11.15 707,449 $11.23 211,677 $7.94 — — $9.17 — 388,508 $10.01 $10.06 — 253,411 $11.15 — $7.94 — — — $7.93 318,339 $10.01 — — — — 12,642 — $7.93 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $12.19 $12.46 616,873 $11.23 $10.53 — 553,342 $12.19 — $8.85 398,159 $11.23 — — — 221,377 $8.85 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber $10.36 of Units $10.15 161,037 — $9.64 $9.73 369,007 $10.36 — $13.33 2,573,776 $17.22 $8.28 58,425 $9.64 — — — 1,856,882 $10.48 $10.92 — 148,446 $13.33 $8.28 — — — 1,225,844 — $8.71 $10.48 — — — 299,833 — — $8.71 — — — — — ProFund VP — Industrials ProFund VP — Health Care Sub-accountProFund VP — Consumer Goods ProFund VP — Oil & Gas 2005ProFund VP — Financials 2004 2003 2002 Appendix A — Condensed Financial Information About Separate Account B ASXT Six – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-54 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-55 ———— ———— ———— ———— ———— (2002) (2002) (2002) (2001) (2002) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $17.89 $18.90 467,320With No Optional Benefits BOP Unit ValueEOP Unit $15.00 Value $12.71 —Number of 992,879 Units $17.89With LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $8.57 206,876 $15.00 — —With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber 306,572 of UnitsWith LT5, $8.57 HDV, and EBP BOP Unit — Value — EOP Unit Value $11.77Number of 2,426,530 Units $14.62With No Optional Benefits BOP Unit ValueEOP 1,479,384 Unit — $13.29 Value $12.00 —Number of Units $11.77With LT5, HDV, and EBP BOP Unit ValueEOP 1,329,806 Unit Value $16.15Number of Units $9.70 $16.96 501,989 $13.29 — — 1,175,651 $12.91 $11.17 — 1,816,706 $16.15 $9.70 — — $7.15 462,906 $9.86 746,085 $7.64 $12.91 — — — $10.65 — 441,318 $9.51 694,352 $7.15 $9.86 — — 423,958 $5.14 — — $9.51 — 93,241 — $5.14 — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $7.93 515,768 $7.51 — $9.44 $8.89 527,336 $7.93 266,978 $8.56 — — $8.89 136,559 $8.56 — — — Sub-accountProFund VP — Internet ProFund VP — Pharmaceuticals 2005ProFund VP — Precious 2004 Metals 2003ProFund VP — Real Estate 2002 ProFund VP — Semiconductor ASXT Six – Prospectus (continued) continued ———— ———— ———— ———— ———— (2001) (2001) (2001) (2001) (2002) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $8.48 577,739 $8.45With No Optional Benefits BOP Unit ValueEOP Unit Value $10.54 —Number $8.66 of 727,580 Units $8.48With LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units 497,972 $6.03 — — $8.66 254,131 — $6.03 — $11.13 1,996,877 $12.37 1,060,939 — $10.60 — $9.34 $11.13 618,427 $7.83 — $9.34 — 521,419 $7.83 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $8.19 456,586 $7.52With No Optional Benefits BOP Unit ValueEOP Unit Value — $9.74Number $7.21 of 460,848 Units $8.19With LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units 398,350 $7.15 — —With $7.21 No Optional Benefits BOP Unit ValueEOP Unit ValueNumber 272,408 of UnitsWith LT5, HDV, and EBP BOP Unit $7.15 Value — —EOP Unit Value $10.53Number of 7,846,866 Units $10.64 8,215,357 $10.12 — — $9.84 $10.53 3,563,562 $7.45 2,169,659 $7.97 $7.23 — $9.84 — 954,792 1,202,243 — $9.54 $8.44 $7.45 $7.97 — — 1,886,515 $11.38 — — $8.44 1,532,543 — $11.38 — — — Sub-accountProFund VP — Technology ProFund VP — Telecommunications 2005ProFund VP — Utilities 2004 2003ProFund VP — Bull 2002 ProFund VP — Bear Appendix A — Condensed Financial Information About Separate Account B ASXT Six – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-56 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-57 ———— ———— ———— ———— ———— (2002) (2002) (2001) (1999) (2001) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit Value $9.94Number of 2,467,486 Units $9.80With No Optional Benefits BOP Unit ValueEOP 4,885,351 Unit Value $10.55 —Number $9.32 of Units $9.94With LT5, HDV, and EBP BOP Unit ValueEOP 4,445,234 Unit Value $5.93Number of 2,494,108 Units $5.88 $6.45 — —With $9.32 No Optional Benefits 1,346,852 BOP Unit ValueEOP Unit Value — 908,064 $9.14Number $6.78 of Units $5.93With LT5, HDV, and EBP BOP Unit — $6.45 Value — EOP Unit Value 1,535,439 $7.89Number of 4,740,165 Units $11.00 $7.47 — — $6.78 433,181 6,592,447 — $11.04 — $7.03 $7.89 $11.00 — — 3,410,589 $11.67 2,164,543 $12.49 $3.53 — — $7.03 1,003,123 2,632,869 $10.23 $10.60 — — $11.67 — $3.53 — 1,455,513 $7.66 $10.23 — — 438,387 — $7.66 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $11.76 1,158,025 $11.87 2,817,803 $10.20 $10.25 — $11.76 1,431,345 $6.78 $10.20 — — 297,435 $6.78 — — — Sub-accountProFund VP — Ultra Bull ProFund VP — OTC 2005ProFund VP — Short 2004 OTC 2003ProFund VP — UltraOTC 2002 ProFund VP — Mid-Cap Value ASXT Six – Prospectus (continued) continued (2002) (2002) (2002) (2002) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber $11.99 of Units 1,935,487 $13.91 3,106,849 $11.38 — $9.55 $11.99 — 1,112,311 $11.10 1,398,442 $11.35 $5.71 — $9.55 — — 477,953 4,088,760 $10.30 — $9.39 $11.10 $5.71 — — — 5,144,632 — $7.09 — $9.39 — — 994,778 — — $7.09 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $10.58 5,059,311 $11.58 2,220,901 $10.76 — $9.69 $10.58 — 1,009,867 $7.70 — $9.69 —With No Optional Benefits BOP Unit Value — 439,054 EOP Unit ValueNumber of UnitsWith LT5, HDV, and $7.70 EBP BOP Unit Value — — EOP Unit ValueNumber of Units —With No Optional Benefits BOP Unit ValueEOP Unit — ValueNumber of Units — With LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber $11.98 of Units 4,579,887 $12.67 4,677,820 $10.16 $10.48 — $11.98 — 3,868,951 $10.37 2,620,751 $7.69 $10.30 $10.16 — — — 772,260 — $9.98 72,725 $10.37 — $7.69 — — — — — — — — — — — — — — — — — — — ProFund VP — Small-Cap Value ProFund VP — Small-Cap Growth ProFund VP — UltraMid-Cap ProFund VP Large-Cap Growth Sub-accountProFund VP — Mid-Cap Growth 2005 2004 2003 2002 Appendix A — Condensed Financial Information About Separate Account B ASXT Six – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-58 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-59 ———— ———— ———— ———— ———— (2002) (1999) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit Value $15.52Number of Units $15.23 816,755 $12.04 $10.66 — 5,098,565 $15.52 $11.79 1,702,558 2,312,868 $6.14 $12.64 $12.04 — — 212,085 1,051,158 $11.08 $10.54 — $11.79 $6.14 — — 731,470 $11.56 $11.08 — — 2,486,854 — $11.56 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit Value $10.37Number of 2,141,308 Units $10.51With No Optional Benefits BOP Unit ValueEOP Unit Value $10.20 — 159,605Number of Units $10.37 —With LT5, HDV, and EBP BOP Unit ValueEOP Unit Value $9.70Number of Units 364,782 $8.64 — — — — — — $8.94 39,360 — $9.70 — — — — $9.54 220,843 $9.11 — — — — — — — $9.17 136,809 — $9.54 — — — — — — — — — — — — — — — Sub-accountProFund VP Large-Cap Value ProFund VP Short Mid-Cap 2005ProFund VP Short Small-Cap 2004 2003ProFund VP — UltraSmall-Cap 2002 ProFund VP — U.S. Government Plus ASXT Six – Prospectus (continued) continued (2002) (2000) 10 Uncommon Values ® With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber $10.03 of Units $9.92 87,726With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber — of $9.16 Units $9.74With $10.03 LT5, 91,924 HDV, and — EBP BOP Unit ValueEOP Unit ValueNumber $11.85 of Units $12.84 590,605 $6.80 — 66,435 — $9.16 — $10.83 — 311,233 $11.85 — 19,826 — $6.80 — — $11.32 — 2,420,873 $11.94 — — — — — — — 1,777,316 $10.43 — $11.32 — — — — — — — — — — — — — — — — — — — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $6.63 3,415,324 $6.00 5,314,528 — $9.08 $7.56 $6.63 — 1,817,924 $10.56 — 899,141 $8.02 — — $7.56 — 165,792 $10.47 — — — — — $8.02 — — — — — — — — — — — — — — — — — — — First Trust Global Dividend Target 15 First Trust Managed VIP Access VP High Yield First Trust Sub-accountProFund VP — Rising Rates Opportunity 2005 2004 2003 2002 Appendix A — Condensed Financial Information About Separate Account B ASXT Six – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-60 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-61 With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $10.66With No Optional Benefits $10.83 134,177BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and $10.75 EBP —BOP $10.66 — Unit 82,809 ValueEOP Unit Value —Number of Units $10.75With No Optional — Benefits — $11.01 — 304,840BOP — — Unit ValueEOP Unit Value —Number of UnitsWith LT5, HDV, and $10.48 EBP — 173,851BOP $10.75 — Unit Value — — — — EOP Unit Value —Number of Units — $10.48With No — Optional — Benefits — 194,864BOP $9.98 — — Unit Value — EOP Unit Value —Number of Units — With LT5, HDV, and EBP — 155,695BOP $9.53 — Unit Value $10.48 — — — — EOP Unit Value —Number of Units — — 1,240,527 — — — $9.76 — — — — — — $9.67 — — — — — — — — — $12.59 1,068,339 $14.82 — — — — — — — — 389,792 $11.11 — $12.59 — — — — — — — — — — — — — — — — — — — — — — Sub-accountFirst Trust NASDAQ Target 15 First Trust S&P Target 24 2005First Trust The Dow Target 10 2004 2003First Trust The Dow Target Dividend 2002 First Trust Value Line Target 25 ASXT Six – Prospectus (continued) continued With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP $10.00 — Unit 649,829 ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP — Unit Value $9.99 — — —EOP Unit Value —Number of UnitsWith No Optional Benefits — 2,586,012 —BOP $10.01 — Unit Value — — —EOP Unit — ValueNumber of UnitsWith LT5, HDV, and EBP BOP $10.00 — Unit — Value — — — —EOP Unit Value — — Number — of Units —With No Optional — Benefits — 2,726,484BOP $10.02 — Unit — Value — — — EOP Unit — ValueNumber of Units — With LT5, HDV, and EBP BOP $10.01 — Unit — Value — — — — EOP Unit Value — — — Number of Units — — — $10.03 — 685,724 — — — — — — $10.02 — — — — — — — — — — — — $10.04 — 115,215 — — — — — — $10.03 — — — — — — — — — — — — — — — — — — — — — — — — — Sub-accountAST Aggressive Asset Allocation Portfolio AST Capital Growth Asset Allocation Portfolio 2005AST Balanced Asset Allocation Portfolio 2004 2003AST Conservative Asset Allocation Portfolio 2002 AST Preservation Asset Allocation Portfolio Appendix A — Condensed Financial Information About Separate Account B ASL II – Prospectus

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-62 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-63 (1997) (1999) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $12.67 5,621,836 $13.84 $10.53 3,227,381 — $11.00 $12.67 — 2,415,394 $8.56 $11.00 — — — 2,569,506 $8.56 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit $15.30 Value 12,141,522Number of $17.54 UnitsWith No Optional Benefits BOP Unit Value 11,265,469EOP $11.16 Unit — $13.39 ValueNumber of Units $15.30 —With LT5, HDV, and EBP BOP Unit Value 5,547,558EOP Unit $12.84 Value 2,013,544Number of $14.36 Units $9.72 $13.39 — —With No Optional Benefits 835,523 —BOP Unit ValueEOP $10.59 1,897,469 Unit — $10.79 ValueNumber of Units $12.84 —With LT5, $9.72 HDV, and EBP BOP Unit — Value — EOP 1,201,268 Unit $13.16 Value 1,907,776Number — of $13.92 Units $8.19 $10.79 — — — 269,995 $10.36 2,276,801 — — $11.30 $13.16 — — $8.19 — — 1,393,001 $9.05 2,134,730 — $9.04 $9.04 $11.30 — — — 969,509 $10.31 2,242,129 — — $9.89 — — $9.05 $9.04 — — 3,292,593 — $6.92 — — $9.89 — 1,970,250 — — — $6.92 — — — — Sub-accountAST JP Morgan International Equity AST William Blair International Growth 2005 2004 2003 2002 ASL II – Prospectus (continued) AST LSV International Value AST MFS Global Equity AST Small-Cap Growth continued (1997) (2000) (1999) (2002) (1997) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit Value $11.98EOP Unit Value 1,385,430 $11.83Number of Units $10.20 1,618,719 — $11.13 $11.98 — $15.42 1,682,193 5,464,856 $16.60 $7.67 — $11.13 — — 639,695 $10.84 4,808,453 — $12.74 $15.42 — $7.67 — — 3,085,373 — $7.64 — $12.74 — — 1,255,415 — — $7.64 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $15.19 1,243,642 $15.68 $10.44 1,541,896 — $12.85 $15.19 — 1,504,296 $9.26 — $12.85 — — 1,492,775 $9.26 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit Value $14.22EOP Unit 11,285,282 Value $14.91Number of Units 10,785,030 $10.53 — $12.42 $14.22 — 10,183,346 $12.99 2,106,236 $12.92 $9.30 — $12.42 — 6,141,523 — 2,143,020 — $10.81 $9.90 $12.99 — $9.30 — — 1,134,865 — $7.66 $10.81 — — — 423,387 — — $7.66 — — — — — Sub-accountAST DeAM Small-Cap Growth AST Federated Aggressive Growth 2005AST 2004 Goldman Sachs Small-Cap Value 2003 2002 Appendix A — Condensed Financial Information About Separate Account B ASL II – Prospectus (continued) AST Small-Cap Value AST DeAM Small-Cap Value

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-64 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-65 (1994) (1993) (2000) (2000) (2000) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $12.38 1,988,252 $12.83 $10.24 2,587,064 — $10.91 $12.38 — 2,513,413 $8.17 $10.91 — — — 1,200,225 $8.17 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit $11.80 Value 5,391,424Number of $12.16 UnitsWith No Optional Benefits BOP Unit ValueEOP $10.46 4,375,813 Unit — $10.31 ValueNumber of Units $11.80 —With LT5, HDV, and EBP BOP Unit ValueEOP 3,027,057 Unit $10.86 Value 5,728,446Number of $12.12 Units $7.97 $10.31 — — — 1,273,118 With No Optional Benefits BOP $11.21 4,715,301 Unit — Value $9.51EOP Unit Value $10.86 —Number of Units $7.97 With LT5, — HDV, — and EBP BOP 3,415,318 Unit $14.51 Value 12,260,007EOP — Unit $15.99 Value $7.41 Number of Units — $9.51 — — 2,175,250 11,461,684 $10.76 — — $12.01 $14.51 — — $7.41 — — 8,530,129 — $9.67 $8.96 $11.10 $12.01 — — 5,118,558 — — — $11.59 — — $9.07 $8.96 $9.67 — 1,798,457 — — — 2,002,166 $6.80 — — $9.07 — — — 658,419 $6.80 — — — — — (formerly AST Gabelli All-Cap Value) (merged into AST Neuberger Berman Mid-Cap Growth) Sub-accountAST Goldman Sachs Mid-Cap Growth AST Neuberger Berman Mid-Cap Growth 2005AST Neuberger Berman 2004 Mid-Cap Value 2003AST Alger All-Cap Growth 2002 AST Mid-Cap Value ASL II – Prospectus (continued) continued ———— ———— ———— ———— ———— (1992) (1995) (1997) (1999) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $9.64 2,531,900 $9.80 $10.64 2,785,100 — $9.45 $9.64 2,053,023 — — $7.67 $9.45 1,349,939 — — $7.67 — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $9.97 5,915,443 $10.43 $10.64 4,529,834 — $9.16 $9.97 4,784,269 — — $7.58 $9.16 2,930,432 — $7.58 — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $9.44 3,925,740 $10.81With No Optional Benefits BOP Unit Value $11.98 2,378,881 —EOP Unit $9.08 ValueNumber $9.44 of UnitsWith LT5, HDV, and EBP BOP Unit Value 2,098,873EOP Unit ValueNumber of Units — — $7.46 $9.08 1,869,353 — $7.46 — $12.26 32,140,125 $12.88 28,117,310 $10.78 — $10.78 — $12.26 20,138,164 $8.32 — $10.78 — 10,144,317 $8.32 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $16.25 3,677,614 $21.00 $11.61 2,040,188 — $12.59 $16.25 2,011,627 $9.59 — $12.59 — 724,670 $9.59 — — — (formerly AST AllianceBernstein Large-Cap Growth) AST T. Rowe Price Large-Cap Growth AST MFS Growth AST Marsico Capital Growth AST Goldman Sachs Concentrated Growth Sub-accountAST T. Rowe Price Natural Resources 2005 2004 2003 2002 Appendix A — Condensed Financial Information About Separate Account B ASL II – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-66 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-67 ———— ———— ———— ———— ———— (1998) (2001) (2001) (1998) (2000) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit Value $12.53EOP Unit 2,585,881 Value $13.47Number of Units With No Optional Benefits BOP 2,351,197 Unit $10.78 Value $10.59 —EOP Unit Value $12.53Number of UnitsWith LT5, HDV, and EBP BOP 1,072,256 Unit ValueEOP Unit Value $10.72 $8.66 Number of $10.78 Units — $11.86 —With — No Optional 664,649 Benefits BOP Unit ValueEOP Unit Value $11.21 — $9.91Number of Units $10.72 $8.66 With 1,620,391 LT5, — HDV, — and EBP BOP Unit ValueEOP Unit Value $12.39Number of 4,311,857 Units $12.86 $7.99 1,387,072 — $9.91 —With No Optional Benefits BOP Unit — ValueEOP 4,643,022 Unit $11.06 Value $10.20 —Number of Units $12.39 965,912 With LT5, HDV, and $7.99 EBP BOP Unit — Value — EOP 3,621,862 Unit Value $18.49Number of 3,749,124 Units $8.76 $20.88 $11.06 — — 6,005,922 4,080,179 — $13.63 $11.88 — $18.49 $8.76 — — 3,097,315 $11.07 $10.08 6,774,078 $11.27 $13.63 — — 1,563,489 6,845,369 — $10.23 $10.28 — $11.07 $10.08 — — 5,442,511 $8.17 $10.23 — — 3,662,406 — $8.17 — — — (merged into AST AllianceBernstein Managed Index 500) Sub-accountAST DeAM Large-Cap Value AST AllianceBernstein Growth + Value 2005 2004AST AllianceBernstein Core Value 2003AST Cohen 2002 & Steers Real Estate AST AllianceBernstein Managed Index 500 ASL II – Prospectus (continued) continued (1997) (1992) (1997) (1993) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $11.46 2,294,531 $11.79 $10.20 2,335,598 — $10.69 $11.46 — 2,045,205 $9.14 — $10.69 — — 1,126,058 $9.14 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $11.19 1,055,033 $11.77 $10.50 1,061,887 — $10.24 $11.19 — 898,161 $8.71 — $10.24 — — 847,517 $8.71 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP $11.46BOP Unit 31,190,346 Value $11.81EOP Unit ValueNumber of Units 25,850,506 $10.15 — $10.50 $11.46 — 21,264,670 $11.17 5,245,455 $8.06 $11.69 — $10.50 — 6,667,373 — $10.44 3,717,848 — $9.83 $11.17 $8.06 — — — — 2,647,064 $8.34 — — $9.83 — 2,110,071 — — $8.34 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $11.57 4,205,655 $11.90 $10.22 4,670,846 — $10.45 $11.57 — 2,115,438 $8.25 — $10.45 — — 1,751,136 $8.25 — — — — — (formerly AST Hotchkis & Wiley Large-Cap Value) AST American Century Strategic Balanced AST Large-Cap Value AST Global Allocation Sub-accountAST American Century Income & Growth AST AllianceBernstein Growth & Income 2005 2004 2003 2002 Appendix A — Condensed Financial Information About Separate Account B ASL II – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-68 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-69 ———— ———— ———— ———— ———— (1994) (2000) (1994) (1994) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $12.13 4,192,626 $12.49 $10.24 3,551,315 — $11.09 $12.13 2,243,566 $9.09 — $11.09 — 921,329 $9.09 — — With No Optional Benefits BOP Unit — ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $11.31 22,436,395 $11.40 33,208,757 $10.04 — $10.95 $11.31 26,287,388 $10.57 — $10.95 — 20,544,075 $10.57 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, $13.45 and EBP BOP Unit 6,261,824 Value $12.64EOP Unit ValueNumber of Units With No Optional 4,717,822 — Benefits $12.59 $9.34BOP Unit Value $13.45EOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP 2,962,471BOP Unit Value $12.69 $11.34 EOP Unit 9,658,908 Value $12.62 $12.59 —Number of — Units 1,739,313 13,717,128 — $11.61 $9.75 $12.69 $11.34 — — 12,201,163 $12.26 12,427,806 $12.20 $9.71 $11.61 — — 5,592,940 8,369,008 — — $11.61 $9.84 $12.26 $9.71 — — 7,751,236 $9.94 $11.61 — — 4,146,530 — $9.94 — — — (formerly AST Goldman Sachs High Yield Bond) Sub-accountAST T. Rowe Price Asset Allocation 2005 2004 2003 2002 ASL II – Prospectus (continued) AST T. Rowe Price Global Bond AST High Yield AST Lord Abbett Bond-Debenture AST PIMCO Total Return Bond continued ———— ———— ———— ———— ———— (1999) (1995) (1996) (1992) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $10.55 28,031,653 $10.54 21,299,789 — $10.51 $9.94 $10.55 15,242,856 $10.34 $10.51 — — 11,274,642 $10.34 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, $10.53 and EBP BOP Unit Value $12.05 672,243EOP Unit ValueNumber of Units $11.18 —With No Optional 269,671 Benefits $10.53 —BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, $16.02 and EBP BOP Unit 3,395,891 Value $20.72 — —EOP Unit Value —Number — of — Units $11.93 2,103,950 — $13.60 $16.02 — — — — 1,763,660 $11.18 $8.66 $11.59 534,649 — $13.60 — — 283,466 $10.08 — $10.23 590,808 $11.18 $8.66 — — $8.25 314,757 — $10.23 — — 196,720 $8.25 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units 42,442,274 $9.78 $9.88 29,870,585 — $9.99 $9.86 $9.78 32,730,501 — $9.96 — 36,255,772 $9.86 — — $9.96 — GVIT Developing Markets (formerly WFVT Advantage Equity Income) Sub-accountAST PIMCO Limited Maturity Bond 2005 2004 2003 2002 Appendix A — Condensed Financial Information About Separate Account B ASL II – Prospectus (continued) AST Money Market SP William Blair International Growth Gartmore Variable Investment Trust – Wells Fargo Advantage VT Equity Income

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-70 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-71 ———— ———— ———— ———— ———— (2000) (1999) (1999) (1999) (1999) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $10.64 1,131,375 $11.31 $10.05 937,586 $11.04 — $10.64 698,364 $8.00 $10.05 — — 475,873 $8.00 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $10.72 $11.67 602,064 $9.61 $10.80 — 668,032 $10.72 889,464 $7.09 $9.61 — — 543,762 $7.09 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $8.09 453,391 $8.13 $10.60 $7.87 — 512,424 $8.09 578,651 $5.50 — — $7.87With No Optional Benefits BOP Unit ValueEOP 293,307 Unit ValueNumber of UnitsWith LT5, $5.50 HDV, and EBP — — BOP Unit ValueEOP Unit ValueNumber of Units — $13.66 $15.59 689,816 $11.65 $10.88 — 414,631 $13.66 $8.15 189,143 $11.65 — — 113,389 $8.15 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $11.94 1,042,992 $12.43 $11.17 585,185 $10.62 — $11.94 607,265 $8.76 $11.17 — — 366,258 $8.76 — — — (formerly AIM V.I. — Health Sciences) Sub-accountAIM V.I. — Dynamics AIM V.I. — Technology 2005AIM V.I. — Global Health Care 2004 2003AIM V.I. — Financial 2002 Services Evergreen VA — International Equity ASL II – Prospectus (continued) continued (1999) (1999) (2000) (2002) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $12.17 1,133,421 $12.94 1,812,435 $10.83 $10.41 — $12.17 — 2,116,400 $7.93 $10.83 — — — 292,396 $7.93 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber $11.58 of Units $10.31With No 169 Optional Benefits BOP Unit ValueEOP Unit Value $11.12Number — of Units $9.26 $11.58With LT5, HDV, and — EBP 702,642BOP Unit ValueEOP Unit ValueNumber $11.29 of Units $7.44 $11.53 281,775 $11.12 — — 815,621 — $10.71 $10.50 — 570,123 $11.29 $7.44 127,728 — — — — $7.78 $11.44 — 404,789 606,614 $10.71 — —With No Optional Benefits BOP Unit Value —EOP Unit Value — Number $11.33 — of Units 39,943 — With LT5, $7.78 HDV, and — EBP —BOP — — Unit Value — — EOP Unit ValueNumber of Units — — — — — — — — — — — $12.30 — — — — 1,723,105 $14.45 — $12.57 $11.10 — 896,010 $12.30 — — 942,605 $7.75 $12.57 — — — 281,993 $7.75 — — — — — (merged into Evergreen VA Growth) ProFund VP — Asia 30 Sub-accountEvergreen VA — Special Equity Evergreen VA — Omega 2005Evergreen VA 2004 Growth Fund 2003ProFund VP — Europe 2002 30 Appendix A — Condensed Financial Information About Separate Account B ASL II – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-72 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-73 (2002) (2002) (2001) (2002) (2002) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $11.87 $11.96 681,692 $10.95 — 529,237 $9.48 $11.87 — 1,512,864 $8.46 $10.95 — — — 76,331 $8.46 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $11.98 $11.77 351,876 $10.90 $10.10 — 229,711 $11.98 — $8.56 93,067 $10.90 — — — 101,136 $8.56 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $9.55 3,413,955 $13.31 710,879 $13.38 $9.03 — $9.55 — 426,718 $7.24 — —With No $9.03 Optional Benefits BOP Unit Value —EOP Unit Value 65,845 Number of UnitsWith LT5, HDV, and EBP $7.24 BOP Unit Value — — EOP Unit ValueNumber of Units — — — $10.52 $12.34 697,686 $9.75 $13.48 — 757,678 $10.52 — 208,971 $7.09 — $9.75 — — 130,082 $7.09 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $9.56 $8.97 86,431 $9.04 — $9.66 430,620 $9.56 — 136,269 $7.25 — — $9.04 — 128,022 $7.25 — — — — — Sub-accountProFund VP — Japan 2005ProFund VP — Basic Materials 2004 2003ProFund VP — Biotechnology 2002 ASL II – Prospectus (continued) ProFund VP — Banks ProFund VP — Consumer Services continued (2002) (2001) (2002) (2001) (2001) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $9.23 2,175,821 $9.63 1,318,525 $10.46 — $9.17 $9.23 — $11.15 707,449 $11.23 211,677 $7.94 — — $9.17 — 388,508 $10.01 $10.06 — 253,411 $11.15 — $7.94 — — — $7.93 318,339 $10.01 — — — — 12,642 — $7.93 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $12.19 $12.46 616,873 $11.23 $10.53 — 553,342 $12.19 — $8.85 398,159 $11.23 — — — 221,377 $8.85 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber $10.36 of Units $10.15 161,037 — $9.64 $9.73 369,007 $10.36 — $13.33 2,573,776 $17.22 $8.28 58,425 $9.64 — — — 1,856,882 $10.48 $10.92 — 148,446 $13.33 $8.28 — — — 1,225,844 — $8.71 $10.48 — — — 299,833 — — $8.71 — — — — — ProFund VP — Industrials ProFund VP — Health Care Sub-accountProFund VP — Consumer Goods ProFund VP — Oil & Gas 2005ProFund VP — Financials 2004 2003 2002 Appendix A — Condensed Financial Information About Separate Account B ASL II – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-74 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-75 ———— ———— ———— ———— ———— (2002) (2002) (2002) (2001) (2002) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $17.89 $18.90 467,320With No Optional Benefits BOP Unit ValueEOP Unit $15.00 Value $12.71 —Number of 992,879 Units $17.89With LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $8.57 206,876 $15.00 — —With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber 306,572 of UnitsWith LT5, $8.57 HDV, and EBP BOP Unit — Value — EOP Unit Value $11.77Number of 2,426,530 Units $14.62With No Optional Benefits BOP Unit ValueEOP 1,479,384 Unit — $13.29 Value $12.00 —Number of Units $11.77With LT5, HDV, and EBP BOP Unit ValueEOP 1,329,806 Unit Value $16.15Number of Units $9.70 $16.96 501,989 $13.29 — — 1,175,651 $12.91 $11.17 — 1,816,706 $16.15 $9.70 — — $7.15 462,906 $9.86 746,085 $7.64 $12.91 — — — $10.65 — 441,318 $9.51 694,352 $7.15 $9.86 — — 423,958 $5.14 — — $9.51 — 93,241 — $5.14 — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $7.93 515,768 $7.51 — $9.44 $8.89 527,336 $7.93 266,978 $8.56 — — $8.89 136,559 $8.56 — — — Sub-accountProFund VP — Internet ProFund VP — Pharmaceuticals 2005ProFund VP — Precious 2004 Metals 2003ProFund VP — Real Estate 2002 ProFund VP — Semiconductor ASL II – Prospectus (continued) continued ———— ———— ———— ———— ———— (2001) (2001) (2001) (2001) (2002) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $8.48 577,739 $8.45With No Optional Benefits BOP Unit ValueEOP Unit Value $10.54 —Number $8.66 of 727,580 Units $8.48With LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units 497,972 $6.03 — — $8.66 254,131 — $6.03 — $11.13 1,996,877 $12.37 1,060,939 — $10.60 — $9.34 $11.13 618,427 $7.83 — $9.34 — 521,419 $7.83 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $8.19 456,586 $7.52With No Optional Benefits BOP Unit ValueEOP Unit Value — $9.74Number $7.21 of 460,848 Units $8.19With LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units 398,350 $7.15 — —With $7.21 No Optional Benefits BOP Unit ValueEOP Unit ValueNumber 272,408 of UnitsWith LT5, HDV, and EBP BOP Unit $7.15 Value — —EOP Unit Value $10.53Number of 7,846,866 Units $10.64 8,215,357 $10.12 — — $9.84 $10.53 3,563,562 $7.45 2,169,662 $7.97 $7.23 — $9.84 — 954,792 1,202,243 — $9.54 $8.44 $7.45 $7.97 — — 1,886,515 $11.38 — — $8.44 1,532,543 — $11.38 — — — Sub-accountProFund VP — Technology ProFund VP — Telecommunications 2005ProFund VP — Utilities 2004 2003ProFund VP — Bull 2002 ProFund VP — Bear Appendix A — Condensed Financial Information About Separate Account B ASL II – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-76 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-77 ———— ———— ———— ———— ———— (2002) (2002) (2001) (1999) (2001) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit Value $9.94Number of 2,467,486 Units $9.80With No Optional Benefits BOP Unit ValueEOP 4,885,351 Unit Value $10.55 —Number $9.32 of Units $9.94With LT5, HDV, and EBP BOP Unit ValueEOP 4,445,234 Unit Value $5.93Number of 2,494,112 Units $5.88 $6.45 — —With $9.32 No Optional Benefits 1,346,852 BOP Unit ValueEOP Unit Value — 908,064 $9.14Number $6.78 of Units $5.93With LT5, HDV, and EBP BOP Unit — $6.45 Value — EOP Unit Value 1,535,439 $7.89Number of 4,740,165 Units $11.00 $7.47 — — $6.78 433,181 6,592,447 — $11.04 — $7.03 $7.89 $11.00 — — 3,410,589 $11.67 2,164,543 $12.49 $3.53 — — $7.03 1,003,123 2,632,869 $10.23 $10.60 — — $11.67 — $3.53 — 1,455,513 $7.66 $10.23 — — 438,387 — $7.66 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $11.76 1,158,025 $11.87 2,817,803 $10.20 $10.25 — $11.76 1,431,345 $6.78 $10.20 — — 297,435 $6.78 — — — Sub-accountProFund VP — Ultra Bull ProFund VP — OTC 2005ProFund VP — Short 2004 OTC 2003ProFund VP — UltraOTC 2002 ProFund VP — Mid-Cap Value ASL II – Prospectus (continued) continued (2002) (2002) (2002) (2002) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber $11.99 of Units 1,935,487 $13.91 3,106,849 $11.38 — $9.55 $11.99 — 1,112,311 $11.10 1,398,442 $11.35 $5.71 — $9.55 — — 477,953 4,088,760 $10.30 — $9.39 $11.10 $5.71 — — — 5,144,632 — $7.09 — $9.39 — — 994,778 — — $7.09 — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $10.58 5,059,311 $11.58 2,220,901 $10.76 — $9.69 $10.58 — 1,009,867 $7.70 — $9.69 —With No Optional Benefits BOP Unit Value — 439,054 EOP Unit ValueNumber of UnitsWith LT5, HDV, and $7.70 EBP BOP Unit Value — — EOP Unit ValueNumber of Units —With No Optional Benefits BOP Unit ValueEOP Unit — ValueNumber of Units — With LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber $11.98 of Units 4,579,887 $12.67 4,677,820 $10.16 $10.48 — $11.98 — 3,868,951 $10.37 2,620,751 $7.69 $10.30 $10.16 — — — 772,260 — $9.98 72,725 $10.37 — $7.69 — — — — — — — — — — — — — — — — — — — ProFund VP — Small-Cap Value ProFund VP — Small-Cap Growth ProFund VP — UltraMid-Cap ProFund VP Large-Cap Growth Sub-accountProFund VP — Mid-Cap Growth 2005 2004 2003 2002 Appendix A — Condensed Financial Information About Separate Account B ASL II – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-78 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-79 ———— ———— ———— ———— ———— (2002) (1999) With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit Value $15.52Number of Units $15.23 816,755 $12.04 $10.66 — 5,098,565 $15.52 $11.79 1,702,558 2,312,868 $6.14 $12.64 $12.04 — — 212,085 1,051,158 $11.08 $10.54 — $11.79 $6.14 — — 731,470 $11.56 $11.08 — — 2,486,854 — $11.56 — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit Value $10.37Number of 2,141,308 Units $10.51With No Optional Benefits BOP Unit ValueEOP Unit Value $10.20 — 159,605Number of Units $10.37 —With LT5, HDV, and EBP BOP Unit ValueEOP Unit Value $9.70Number of Units 364,782 $8.64 — — — — — — $8.94 39,360 — $9.70 — — — — $9.54 220,843 $9.11 — — — — — — — $9.17 $136,809 — $9.54 — — — — — — — — - — — — — - — Sub-accountProFund VP Large-Cap Value ProFund VP Short Mid-Cap 2005ProFund VP Short Small-Cap 2004 2003ProFund VP — UltraSmall-Cap 2002 ProFund VP — U.S. Government Plus ASL II – Prospectus (continued) continued (2002) (2000) 10 Uncommon Values ® With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber $10.03 of Units $9.92 87,726With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber — of $9.16 Units $9.74With $10.03 LT5, 91,924 HDV, and — EBP BOP Unit ValueEOP Unit ValueNumber $11.85 of Units $12.84 590,605 $6.80 — 66,435 — $9.16 — $10.83 — 311,233 $11.85 — 19,826 — $6.80 — — $11.32 — 2,420,873 $11.94 — — — — — — — 1,777,316 $10.43 — $11.32 — — — — — — — — — — — — — — — — — — — — — — — With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $6.63 3,415,324 $6.00 5,314,528 — $9.08 $7.56 $6.63 — 1,817,924 $10.56 — 899,141 $8.02 — — $7.56 — 165,792 $10.47 — — — — — $8.02 — — — — — — — — — — — — — — — — — — — First Trust Global Dividend Target 15 First Trust Managed VIP Access VP High Yield First Trust Sub-accountProFund VP — Rising Rates Opportunity 2005 2004 2003 2002 Appendix A — Condensed Financial Information About Separate Account B ASL II – Prospectus (continued)

APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-80 APPENDIX A AMERICAN SKANDIA ANNUITIES PROSPECTUS A-81 With No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of UnitsWith No Optional Benefits BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and EBP BOP Unit ValueEOP Unit ValueNumber of Units $10.66With No Optional Benefits $10.83 134,177BOP Unit ValueEOP Unit ValueNumber of UnitsWith LT5, HDV, and $10.75 EBP —BOP $10.66 — Unit 82,809 ValueEOP Unit Value —Number of Units $10.75With No Optional — Benefits — $11.01 — 304,840BOP — — Unit ValueEOP Unit Value —Number of UnitsWith LT5, HDV, and $10.48 EBP — 173,851BOP $10.75 — Unit Value — — — — EOP Unit Value —Number of Units — $10.48With No — Optional — Benefits — 194,864BOP $9.98 — — Unit Value — EOP Unit Value —Number of Units — With LT5, HDV, and EBP — 155,695BOP $9.53 — Unit Value $10.48 — — — — EOP Unit Value —Number of Units — — 1,240,527 — — — $9.76 — — — — — — $9.67 — — — — — — — — — $12.59 1,068,339 $14.82 — — — — — — — — 389,792 $11.11 — $12.59 — — — — — — — — — — — — — — — — — — — — — — Sub-accountFirst Trust NASDAQ Target 15 First Trust S&P Target 24 2005First Trust The Dow Target 10 2004 2003First Trust The Dow Target Dividend 2002 First Trust Value Line Target 25 ASL II – Prospectus (continued) This page intentionally left blank APPENDIX B AMERICAN SKANDIA ANNUITIES PROSPECTUS B-1 Purchase Payments – proportional withdrawals lue, which ever is greater. Therefore, the basic Death lue, which ever is greater. Therefore, the basic Death minus the Account Value has been increasing due to positive market the “Growth” under the Annuity. 40% of the “Growth” under the Annuity. PLUS PLUS 0.40 (no MVA applies) × Account Value of variable Value of Fixed Allocations investment options plus Interim = $–5,000 NO BENEFIT IS PAYABLE = $50,000 = $25,000 == $25,000 $10,000 = $85,000

Growth =Benefit Payable under Enhanced Beneficiary Protection $45,000 Optional Death – [$50,000 Benefit – = $0] 40% of Growth Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit Growth =Benefit Payable $75,000 under – Enhanced [$50,000 Beneficiary – Protection $0] Optional Death Benefit = 40% of Growth Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit Growth =

Examples with market decline Assume that the Owner hasperformance. made On no the withdrawals date and we thatas receive the Purchase due Account Payments proof Value minus of has proportional death, been withdrawals, the decreasing or Account due Account Value to Va is declines $45,000. in The market basic Death Benefit is calculated Benefit is equal to $50,000.the The basic Enhanced Death Beneficiary Benefit Protection ($50,000) Optional Death Benefit is equal to the amount payable under Example with market increase Assume that the Owner has made no withdrawals and that performance. On the date weas receive Purchase due Payments proof minus of proportional death, withdrawals, the or Account Account Value Va is $75,000. The basic Death Benefit is calculated Examples of Enhanced Beneficiary Protection Optional DeathThe Benefit following Calculation are examples of how theBenefit Enhanced is Beneficiary calculated. Protection Each Optional example Death assumes thatmade. a Each $50,000 example initial assumes Purchase that Payment there is isand one that Owner all who Account is Value age is 50 maintained onformula in the for the Issue determining variable Date the investment Enhanced options. Beneficiary The Protectionas Optional follows: Death Benefit is Benefit is equal to $75,000.the The basic Enhanced Death Beneficiary Benefit Protection ($75,000) Optional Death Benefit is equal to the amount payable under Death Benefits Appendix B — Calculation of Optional the Death Benefit before 40% of the “Growth” under the Annuity. continued PLUS $15,000/$75,000)] × minus proportional withdrawals, or Account Value, which market performance and the Owner made a withdrawal of it is greater than the amount that would have been payable Death Benefit is calculated. Each example assumes an initial market performance and the Owner made a withdrawal of easing due to positive market performance and that no with- death, the Account Value is $75,000; however, the Anniversary $15,000/$75,000] × anniversary of the Issue Date was $90,000. Assume as well that the $15,000/$75,000)] th × == max [$80,000, $40,000] $80,000 == $90,000 – $18,000 $72,000 0.40 × anniversary of the Issue Date was $90,000. Assume as well that the Owner has died = $110,000 = $20,000 == $90,000 – [$50,000 –= $10,000] $90,000 – $40,000 $50,000 = $50,000 th Highest Anniversary Value = $90,000 – [$90,000 Basic Death Benefit = max [$80,000, $50,000 – ($50,000 Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit Growth = $90,000 – [$50,000 – ($50,000 Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth The Death Benefit therefore is $80,000. Example with withdrawals Assume that the Account Value has been increasing due to positive Purchase Payment of $50,000. EachAccount example Value assumes is that maintained there in is the one variable OwnerExample investment who with options. is market age increase 70 and onAssume death the that before Issue the Death Date Owner’s Benefit and Account Targetdrawals that Value Date have all has been generally made. been On incr Valueonthe5 the date we receive dueTarget proof Date. of The Death BenefitBenefit is would equal be to the the Highest greaterunder Anniversary of the Value the basic ($90,000) Highest Death because Anniversary Benefit Value ($75,000). or the basic Death Benefit. The Death $15,000 in Annuity Year 7is when $80,000; the however, Account the Value Anniversary was Value $75,000. on On the the 5 date we receive due proof of death, the Account Value Examples of Highest Anniversary ValueThe Death following Benefit are Calculation examples of how the Highest Anniversary Value Owner has died before theValue Death or Benefit the Target basic Date. Death The Benefit. Death Benefit is equal to the greater of the Highest Anniversary In this example you would receiveDeath no Benefit. additional benefit from purchasing the EnhancedExample Beneficiary with Protection market Optional increase andAssume withdrawals that the Account Value$15,000 has in been Annuity increasing Year due 5 to$90,000. when positive The the basic Account Death Value Benefit was is $75,000.ever On calculated is the as greater. date Therefore, Purchase the we Payments receive basicBenefit due Death is Benefit proof equal is of to equal death, the to the amount $90,000. Account payable The Value under Enhanced is the Beneficiary basic Protection Death Optional Benefit Death ($90,000) Appendix B — Calculation of Optional Death Benefits

APPENDIX B AMERICAN SKANDIA ANNUITIES PROSPECTUS B-2 APPENDIX B AMERICAN SKANDIA ANNUITIES PROSPECTUS B-3 the Death Benefit after $5,000/$70,000}] × $5,000/$70,000] × annuity year is equal to 5% of the Roll-Up Value as th aining $1,650 of the withdrawal results in a proportional anniversary of the Issue Date was $70,000. Assume as example assumes that there is one Owner who is age 70 nd hdrawals after the Death Benefit Target Date or the basic and Highest Anniversary Value Death Benefit are calculated. easing due to positive market performance and that no with- easing due to positive market performance and that no with- anniversary of the Issue Date when the Account Value was nniversary Value ($90,000) because it is greater than both the th anniversary of the Issue Date was $90,000. Assume as well that th have been payable under the basic Death Benefit ($75,000). anniversary of the Issue Date we receive due proof of death, at which time the th anniversary of the Issue Date is equal to initial Purchase Payment accumulated at 5% for the Death Benefit Target Date. The Death Benefit is equal to the greatest of the Roll-Up anniversary of the Issue Date we receive due proof of death, at which time the Account th th == $80,000 + $15,000 – $6,786 $88,214 == max [$75,000, $60,357] $75,000 before the Death Benefit Target Date. The Roll-Up Value is equal to initial Purchase Payment accumulated before anniversary of the Issue Date, or $3,350. Therefore, the rem th Highest Anniversary Value = $80,000 + $15,000 – [($ 80,000 + $15,000) Basic Death Benefit = max [$75,000, ($50,000 + $15,000) – {($50,000 + $15,000) Account Value is $43,000; however, the Anniversary Value on the 2 Assume that the Owner made a withdrawal of $5,000 on the 6 Example with withdrawals Target Date, when the Account$80,000; Value however, is following $75,000. the The Death Highesttaken Benefit Anniversary a Target Value withdrawal Date, on of the the $5,000 Owner DeathAnniversary when made Benefit Value the a Target plus Account Purchase Date Purchase Value Payment was Payments was ofDeath minus $70,000. $15,000 Benefit. proportional The and wit Death later Benefit had is equal to the greater of the Highest Each example assumes an initialon Purchase the Payment Issue of Date $50,000. and Each that all Account Value is maintained in the variable investment options. drawals have been made. OnValue the is 7 $75,000; however, thethe Anniversary Owner Value has on died the 5 at 5% for 6 years,basic or Death $67,005. Benefit. The The Death Death Benefit Benefit is would equal be to the the Highest greatest A of the Roll-Up Value, Highest Anniversary Value or the 6 years, or $67,005. Theof 5% the Dollar-for-Dollar 6 Withdrawal Limit forreduction the to 7 the Roll-Up Value. On the 7 well that the Owner hasValue, died Highest Anniversary Value or the basic Death Benefit. Example with market increase andAssume death that before the Death Owner’s Benefit Account Target Value Date has generally been incr The following are examples of how the Combination 5% Roll-Up Examples of Combination 5% Roll-Up and Highest Anniversary Value Death Benefit Calculation Roll-Up Value ($67,005) and the amount that would $45,000. The Roll-Up Value on the 6 Example with death after DeathAssume Benefit that Target the Date Owner’s Accountdrawals Value had has been generally made been prior incr to the Death Benefit Target Date. Further assume that the Owner dies The Death Benefit therefore is $88,214. 1.05 × $5,000/$70,000}] × continued $1,650/($45,000 – $3,350)]} $5,000/$70,000] $5,000/$70,000] × × × $5,000/$45,000)] × the Death Benefit Target Date. The Death Benefit is equal easing due to positive market performance and that no with- birthday) is equal to initial Purchase Payment accumulated at the Death Benefit Target Date. Further assume that the Owner th calculated. Each example assumes an initial Purchase Payment of before $5,000/$45,000] 1.05 × × been payable under the basic Death Benefit ($75,000). == $81,445 + $15,000 – $6,889 $89,556 == $85,000 + $15,000 – $7,143 $92,857 == max [$75,000, $60,357] $75,000 == ($63,655 – $2,522) $64,190 == $70,000 – $7,778 $62,222 == max [$43,000, $44,444] $44,444 the Death Benefit Target Date, when the Account Value is $75,000. The Roll-Up Value on the Death Benefit Target Highest Anniversary Value = $85,000 + $15,000Basic – Death [($85,000 Benefit + 15,000) = max [$75,000, $50,000 + $15,000 – {(50,000 + $15,000) Roll-Up Value = $81,445 + $15,000 – [($81,445 + 15,000) Highest Anniversary Value = $70,000 – [$70,000 Basic Death Benefit = max [$43,000, $50,000 – ($50,000 Roll-Up Value = {(67,005 – $3,350) – [($67,005 – $3,350) after The Death Benefit therefore is $92,857. Example with market increase andAssume death that before the Death Owner’s Benefit Account Target Value Date has generally been incr Examples of Highest Daily ValueThe Death following Benefit are Calculation examples of how the HDV Death Benefit is 5% for 10 years, orthe $81,445. Death The Benefit Highest Target Anniversary Date, Valuewhen the on the Owner the Account made Death Value a Benefit was Purchase TargetValue $70,000. Payment Date or The of was the Death $15,000 $85,000; basic Benefit and however, Death is later following reduced Benefit equal had proportionally as to taken for of the a subsequent the greatest withdrawal withdrawals. Death of of Benefit the $5,000 Target Roll-Up Date; Value, each Highest increased Anniversary by subsequent purchase payments and $50,000. Each example assumes that there is one Owner who is age 70 on the Issue Date. drawals have been made. OnValue the was date $90,000. we Assume receive as dueto well proof the that of greater the death, of Owner the the has Accountis Highest died Value greater Daily is than Value $75,000; the or however, amount the the that basic Highest would Death Daily have Benefit. The Death Benefit would be the HDV ($90,000) because it The Death Benefit therefore is $64,190. Example with death after DeathAssume Benefit that Target the Date Owner hasdies not made any withdrawals priorDate to (the contract anniversary on or following the Owner’s 80 Appendix B — Calculation of Optional Death Benefits

APPENDIX B AMERICAN SKANDIA ANNUITIES PROSPECTUS B-4 APPENDIX B AMERICAN SKANDIA ANNUITIES PROSPECTUS B-5 the Death Benefit after $5,000/$70,000}] × $5,000/$70,000] × during the fifth Annuity Year. Assume as well that the market performance and the Owner made a withdrawal of $15,000/$75,000)] × easing due to positive market performance and that no with- $15,000/$75,000] × == $80,000 + $15,000 – $6,786 $88,214 == max [$75,000, $60,357] $75,000 == $90,000 – $18,000 $72,000 == max [$80,000, $40,000] $80,000 Basic Death Benefit = max [$75,000, ($50,000 + $15,000) – {($50,000 + $15,000) Highest Daily Value = $80,000 + $15,000 – [($80,000 + $15,000) Highest Daily Value = $90,000 – [$90,000 Basic Death Benefit = max [$80,000, $50,000 – ($50,000 Target Date, when the Accounthowever, Value following is the $75,000. Death The Benefit Highestwithdrawal Target Daily of Date, Value $5,000 the on when Owner the the made DeathValue Account a Benefit on Value Purchase Target the was Payment Date Death $70,000. of was Benefit The $15,000 $80,000; Date Target Death and or Date Benefit later the plus is had basic Purchase equal taken Death Payments to a Benefit. minus the proportional greater withdrawals of after the the Highest Death Daily Benefit Target drawals had been made prior to the Death Benefit Target Date. Further assume that the Owner dies The Death Benefit therefore is $88,214. Example with death after DeathAssume Benefit that Target the Date Owner’s Account Value has generally been incr Example with withdrawals Assume that the Account Value$15,000 has in been Annuity increasing Year due 7 tois when positive $80,000; the however, Account the Value Highest wasOwner Daily $75,000. has Value On died ($90,000) the before was date the attained we(proportionally Death receive reduced Benefit due by Target proof the Date. of subsequent The death, withdrawal) Death the or Benefit Account the is Value basic equal Death to Benefit. the greater of the Highest Daily Value The Death Benefit therefore is $80,000. This page intentionally left blank APPENDIX C AMERICAN SKANDIA ANNUITIES PROSPECTUS C-1 While we will return the rider” or the “Rider”) is rider based on this provision, rider’s death benefit under the ™ ™ ™ rider is included as an rider is equal to 40% of the ™ ™ rider (generally, the Issue Date of your Annuity), ™ rider is not available to purchasers who use their Annuity as a ™ rider. However, if Credits were applied to Purchase Payments made ™ Optional Life Insurance Rider (“Plus40 ™ rider is 40; the maximum allowable age is 75. If the Rider is purchased on two ™ rider if you die within 24 months of its effective date. benefit applies to those Contract Owners who purchased an Annuity during that ™ benefit. ™ ™ Optional Life Insurance Rider was offered, in those states where approved, between ™ rider based on this provision, we will return 50% of any charges paid for the Rider based on those Purchase Payments ™ rider may be purchased as a rider on your Annuity. The Rider must cover those persons upon whose death the Annuity’s ™ Accelerated Death Benefit provision, the amountrefer that to will the be Accelerated payable Death under Benefit the provision Rider described upon below. your death will be reduced. Please within 24 months prior to thereduced date by of the death, amount the of Account such Value Credits. used If to we determine reduce the the amount death of benefit the payable death under benefit the will Plus40 be as an additional amount included in the death benefit under the Rider. determining the death benefit payable under the Plus40 the death benefit will be limitedcharges to you the have amount paid of during any the chargesinsurance applicable paid benefit period for from as the the the Rider Plus40 death while benefit, it your was Beneficiary(ies) in will effect. receive nothe additional death life benefit will be reducedPlus40 by the amount of such Purchase Payment(s). If we reduce the death benefit payable under the we will return 50% of anybenefit charges under paid the for Rider. the Rider based on such Credits as an additional amount included in the death

• If you die during the first 24 months following the effective date of the Plus40 • If we apply Credits to your Annuity based on Purchase Payments, such Credits are treated as Account Value for purposes of • If you make a Purchase Payment within 24 months prior to the date of death, the Account Value used to determine the amount of • If you become terminally ill (as defined in the Rider) and elect to receive a portion of the Plus40 The minimum allowable age to purchase the Plus40 The income tax-free life insurance payable to your Beneficiary(ies) under the Plus40

The life insurance coverage provided under the Plus40 American Skandia’s Plus40 November 18, 2002 for ASAP III,The January description 17, below 2002 of for the ASL Plus40 IItime and period APEX and II, elected and the January Plus40 23, 2002 for XT6 and May 1, 2003. funding vehicle for a Tax ShelteredRevenue Annuity Code (or (“Code”). 403(b)) or as a funding vehicleADJUSTMENTS, for a RESTRICTIONS qualified & plan LIMITATIONS under Section 401 of the Internal Account Value of your Annuity asand of limitations the described date below. we receive due proof ofELIGIBILITY death, subject to certain adjustments, restrictions The Plus40 death benefit becomes payable — theAnnuity Annuity’s has owner two or Owners, owners, the or Rider’s thethe death Annuitant Rider’s benefit (in death is the benefit payable case is upon of payable the an upon first entity the death owned death of Annuity). of such If the persons. the Annuitant, If even the if Annuity a is Contingent owned Annuitant by is an named. entity, lives, both persons must meet the age eligibility requirements. The Plus40

Insurance Rider Appendix C — Plus40™ Optional Life Appendix to this Prospectus to helpAnnuity. you It understand is the also Rider included and because thestaff you relationship of can between the elect the Securities to Rider and pay and Exchange for thesubject Commission the value to has Rider of certain not with your generally reviewed taxable applicable this withdrawals provisions information. from of However, your the the Annuity. Federal information The securities may laws be regarding accuracy and completeness. supported by American Skandia’s general accountSecurities and Act is of not 1933 subject or to, the or Investment registered Company as Act a of security 1940. under, Information either about the the Plus40 ™ ™ The Per Life rider is based on a ™ rider be prepaid instead of ™ annuity contract we issue to you any continued rider, the amount of the remaining death benefit is reduced by the ™ rider is misstated, we will adjust any coverage under the Rider to conform to ™ riders, or similar riders issued by us, based on the combined amount of Purchase rider on a pro-rata basis. If the Per Life Maximum Benefit applies upon your death, we ™ is 100% of the Purchase Payments increasing at 5% per year following the date each ™ rider or similar life insurance coverage. ™ applies to Purchase Payments applied to any such annuity contracts more than 24 months from RIDER ™ rider are due and are unpaid as of the date the death benefit is being determined, such charges will be ™ birthday), coverage will terminate. No charge will be made for an Owner following the expiry date. If there are two th Per Life Maximum Benefit Maximum Death Benefit Amount rider has a current charge and a guaranteed maximum charge. The current charge for the Plus40 rider is subject to a Maximum Death Benefit Amount based on the Purchase Payments applied to your Annuity. The Plus40 ™ ™ Purchase Payment is applied to themonths Annuity prior until to the the date date of of death. death, If the Purchase Maximum Payments Death are Benefit applied Amount to is the decreased Annuity by within the 24 amount of such Purchase Payments. Payments in excess of $1,000,000 multipliedpayable by under 40%. each If applicable the Plus40 Per Lifewill Maximum return Benefit any applies, excess we charges will that reduceMaximum you the Benefit paid amount does on not the limit portion the of amount your of Account Purchase Value Payments on that which you no may benefit apply is to payable. your Annuity. the date of death that exceeddeath $1,000,000. benefit If payable you under make all Purchase Plus40 Payments in excess of $1,000,000, we will reduce the aggregate Owners, the expiry date applies separatelythe to other each Owner. Owner; therefore, coverage may continue for one Owner and terminate as to deducted from the amount paid to your Beneficiary(ies). the facts. For example, if, duecharges to paid the to misstatement, the we amount overcharged payable youunder to for the your coverage Rider, Beneficiary(ies). under we If, the will due Rider, reduce to wehave the the will been death misstatement, add paid benefit we any had in undercharged additional there proportion you been to for no the coverage misstatement. charges not paid as comparedthe to 95 the charges that would • The • The • If charges for the Plus40 • If the age of any person covered under the Plus40 The maximum we will pay, before any reduction, is the lesser of 50% of the Rider’s death benefit or $100,000. If you elect to accel- • On or after an Owner reaches the expiry date of the Rider (the anniversary of the Annuity’s Issue Date on or immediately after prepaid amount accumulating at an annualized interest rate of 6.0%. Eligibility for an accelerated payout of a portion of your Plus40 The Plus40 rider death benefit may be moreAnnuity. restrictive than any medically-related surrender provision that mayCHARGES be applicable FOR to THE you PLUS40 under the under which you have elected the Plus40 ACCELERATED DEATH BENEFIT PROVISION If you become terminally ill, you may request that a portion of the death benefit payable under the Plus40 MAXIMUM BENEFIT The Plus40 rider may also be subject to a Per Life Maximum Benefit that is based on all amounts paid under being paid to your Beneficiary(ies) uponlump your sum death. payment. Subject Our to requirements our include requirements proof and satisfactory where to allowed us, by in law, writing, weerate of will payment terminal make of illness a a after one portion the time, of Rider’s the Effective death Date. benefit under the Plus40 percentage of your Account Value asattained of age, the last anniversary birthday of of the the Issuereserve Owner(s) Date the or of right Annuitant your to (in Annuity. change the The the case applicablecalculate current of percentages the charge, an differ current at entity based charge any owned on that time, Annuity) the applies subject asis to to of no each regulatory the charge Owner approval date based individually where the on and required. charge a deduct If isOwners person’s the there due. (and life combined are We coverage after amount two will coverage as Owners, continue expires the we for as charge such to for Owner) that the if person. Rider. such However, There Owner a has charge not will reached still the apply expiry to date. the second of two Appendix C — Plus40™ Optional Life Insurance Rider

APPENDIX C AMERICAN SKANDIA ANNUITIES PROSPECTUS C-2 APPENDIX C AMERICAN SKANDIA ANNUITIES PROSPECTUS C-3 ™ Percentage of Account Value rider. ™ Attained Age Age 40-75Age 76-80Age 81-85Age 86-90Age 91Age 92Age 93Age 94Age 95 .80% 1.60% 3.20% 4.80% 6.50% 7.50% 8.50% 9.50% 10.50% rider may also be subject to a guaranteed maximum charge that will apply if the current charge, when rider at any time. Upon termination, you will be required to pay a pro-rata portion of the annual charge for ™ ™ , the distribution may also be subject to a 10% penalty on any gain withdrawn, in addition to ordinary income 2 ⁄ rider will terminate automatically on the date your Account Value is applied to begin receiving annuity payments, rider, if necessary, to comply with our interpretation of the Code and applicable regulations. Once terminated, you 1 ™ ™ taxes. We first deduct the amountdeduct of the the charge charge pro-rata pro-rata from from the theoptions Fixed Account to Allocations Value pay to in the the the charge. extent variable there investment is options. insufficient We Account only Value in thein variable U.S. investment currency through a U.S.payment financial has institution. not If been you received elect within toas 31 pay described days the above. from charge the through due electronic date, transfer we of will funds deduct and the charge as a redemption from your Annuity, distribution, and will generally be subjectunder to age ordinary 59 income tax on the amount of any investment gain withdrawn. If you are • If you elect to pay the charge through funds other than those from your Annuity, we require that payment be made electronically We determine the charge for the Rider annually, in arrears. We deduct the charge: (1) upon your death; (2) on each anniversary of the You can elect to pay the annual charge through a redemption from your Annuity’s Account Value or through• funds other than those If you elect to pay the charge through a redemption of your Annuity’s Account Value, the withdrawal will be treated as a taxable The charge for the Plus40 may not reinstate your coverage under the Plus40 rider. These changes may include termination of the Rider. Please refer to the Rider for specific details. the Rider. The Plus40 on the date you surrender theterminate Annuity the or, Plus40 on the expiry date with respect to such person who reaches theCHANGES expiry IN date. We ANNUITY may DESIGNATIONS also Changes in ownership and annuitant designations under the Annuity may result in changes in eligibility and charges under the Plus40 TERMINATION You can terminate the Plus40 applied to the Account Value, exceeds$1,000 the of guaranteed insurance. maximum charge. The guaranteed maximum charge is based on aIssue charge Date; per (3) on the datesurrender; that or you (5) begin if receiving you annuity choose payments;anniversary to (4) of terminate if the the you Annuity’s Rider. surrender Issue If your Date, the Annuitybe the Rider other prorated charge terminates than from will for a the be any medically-related Issue prorated. of Date. During the In the preceding all first reasons subsequent year on years, after a the the date charge Annuity’s otherwithin will Issue than the be Date, the Annuity. prorated the If from charge you the will do lastValue. not anniversary The elect of manner a the in method Issue which of Date. you payment, elect we to will pay automatically for deduct the the Rider annual may charge have from tax your implications. Annuity’s Account rider to the ™ rider will be paid despite ™ rider to be outside of your IRA, since ™ the death benefit under the Plus40 . The spousal beneficiary can apply the death benefit proceeds under the Plus40 rider was designed to qualify as a life insurance contract under the Code. As life insurance, under most circumstances, the rider, in which case the Annuity’s Account Value, as of the date the assumption is effective, will be treated as the initial ™ ™ If your Annuity is being used as an Individual Retirement Annuity (IRA), we consider the Plus40 We believe payments under the accelerated payout provision of the Rider will meet the requirements of the Code and the regulations Purchase Payment under applicable provisions of the Rider. TAX CONSIDERATION The Plus40 Beneficiary(ies) does not pay any Federal income tax on the death benefit payable under the Rider. SPOUSAL ASSUMPTION A spousal beneficiary may elect toof assume whether ownership a of spousal the beneficiary Annuity assumes insteadthe ownership of fact of taking that the the the Annuity, Annuity’s Annuity Death will Benefit.Annuity continue However, as regardless a new Purchase Payment,Certain can restrictions purchase may a apply new to annuity an contractthe Annuity or Plus40 that use is the used death as benefit a proceeds qualified for investment. any Spousal other beneficiaries purpose. may also be eligible to purchase premium for the Rider is paidcable for tax either penalty. with funds outside of your Annuity or with withdrawals previouslyin subject order to to tax qualify and as any tax-free appli- definition payments. of To terminally the ill, extent or permitted any byerated other law, payout applicable we provision. term will in change order our to procedures maintain in the relation tax-free to status the of Rider, any or amounts the paid out under the accel-

APPENDIX C AMERICAN SKANDIA ANNUITIES PROSPECTUS C-4 APPENDIX D AMERICAN SKANDIA ANNUITIES PROSPECTUS D-1 From time to time you may be notified of a change in a Sub-account within your You may not change from the model portfolio that you have elected to any other model Changes in the value of the Sub-account will cause your Account Value allocated to the Unless otherwise requested, any additional Purchase Payments applied to the variable Sub-accounts Asset allocation is a sophisticated method of diversification that allocates assets among asset classes in order to manage

can only be made as flat dollar amounts. be permitted to re-enroll in therequest program. in Any good termination order. will If be youin effective are a on enrolled then the in currently date HDV available that or andvalue American LT5, approved to Skandia termination asset the receives of allocation then your your program required termination asset or investmentLT5 allocation other option(s) benefit program approved available in must option, with order coincide or these to with (ii) benefits. then (i)allocation the However, terminate the program allocation if your enrollment at of you asset any your are allocation time entire enrolled program. with account in American respect LT5 Skandia to you reserves any may the programs. terminate right the to terminate or modify the asset in the Annuity will be allocatedof to additional the Purchase Sub-accounts Payments according outside to ofpercentages the your of allocation model the percentages portfolio applicable for but model the into portfolio model a upon portfolio Sub-account, the you will nextRebalancing chose. be rebalancing. Your Allocation reallocated Model according Portfolio: to theSub-accounts allocation to vary from the percentagehave allocations directed of us the to model periodically portfolio (e.g.,percentage you quarterly) allocations select. rebalance assigned By your to selecting Account each the Value Sub-accountmodified asset allocated within with allocation to your your program, the model consent. you Sub-accounts portfolio Some in at assetValue accordance the allocation allocated with time programs to the you will the elected only Sub-accounts the require areAccount program that outside Value or a of not had rebalancing the invested later occur acceptable in been when range the the permitted Sub-accounts percent under will of such notSub-account your asset be Changes Account allocation affected Within program. by the Note any Model — Portfolios: rebalance. model Any portfolio. If you consent (inrebalance. the If manner you that do is not then consentSub-account permitted then is or rebalancing no required) will longer to continue available the in underallocation change, accordance your program then with Annuity, and it your in the will unchanged which provisions be model case under implemented portfolio, your “Termination upon unless lack or the the of ModificationOwner next consent of Changes will the in be Asset Choice deemed Allocation of a Program” Modelportfolio. request will Portfolio: to apply. terminate the asset you previously chose. If you allocatemodel your portfolio, Account we Value will or allocate transfer theserebalancing. your amounts You Account according will Value to not among the be any allocation permittedallocated Sub-accounts percentages to to that of change the are the from variable outside applicable one Sub-accounts of model model will your Sub-accounts portfolio portfolio be will upon to allocated not the another. to be next Upon the part each asset of rebalance, allocation the 100% program. program. of AnyAdditional your Account Purchase Account Value Payments: Value not invested in the portfolio were designated based on anasset evaluation allocation of program, available but Sub-accounts. you Effective willhow December be the 5, permitted asset 2005, to allocation you remain program can in willprogram. no the be longer program administered enroll if as in you of an enrolled Decemberinvestment prior 5, risk to 2005 and the for potentially date. those enhance These Owners returns Programagainst who over Rules a have the reflect loss. chosen long to term. remain However, in asset their allocation does not guarantee a profit or protect Restrictions on Electing the Asset Allocation: • You cannot participate in auto-rebalancing or a DCA program while enrolled in an asset allocation program and Systematic Withdrawals Termination or Modification of the Asset• Allocation You Program: may request to terminate your asset allocation program at any time. Once you terminate your asset allocation program, you will not • • • • • Amounts will automatically be allocated in accordance with the percentages and to Sub-accounts indicated for the model portfolio that How the Asset Allocation Program Works Program Rules • Prior to December 5, 2005, you could elect an asset allocation program where the Sub-accounts for each asset class in each model Allocation Programs Appendix D — Additional Information on Asset This page intentionally left blank APPENDIX E AMERICAN SKANDIA ANNUITIES PROSPECTUS E-1 birthday of the current Owner, the oldest of either joint th ENEFIT B EATH D PTIONAL O ” less Purchase Payments reduced by proportional withdrawals. are determined by calculating the percentage of your Account Value that each prior withdrawal includes your Account Value and any amounts added to your Account Value under the Annuity’s basic ROTECTION P Death Benefit Amount If the Annuity has one Owner, the Owner must be age 75 or less at the time the benefit is purchased. If the Annuity has ENEFICIARY B

Owner or the Annuitant, if entity owned. The Highest Anniversary Value equals thedeath highest and of the all “Death previous Benefit “Anniversary Target Values” Date”. on or before the earlier of the Owner’s date of The Death Benefit Target Date is the contract anniversary on or after the 80 The amount calculated in Items 1 & 2 above may be reduced by any Credits under certain circumstances. “Proportional withdrawals” “Death Benefit Amount” The Enhanced Beneficiary Protection Optional Death Benefit provides a benefit that is payable in addition to the basic PLUS

Please refer to the section entitledof “Tax this Considerations” benefit. for a discussion of special tax considerationsNOTE: for You purchasers may not elect theOptional Enhanced Death Beneficiary Benefit. Protection Optional Death Benefit if you have elected any other The Enhanced Beneficiary Protection Optional Deathapplied Benefit to is the subject Annuity to at a least maximumBenefit. 12 of months 50% prior of to all the Purchase death Payments of the decedent that triggers the payment of the Death NHANCED • Guaranteed Minimum Death Benefit If the Annuity has one Owner,joint the Owners, Owner the must oldest be Owner age must 80 be or age less 80Key at or the Terms less. time Used If the the with optional Annuity Death the• is Benefit Guaranteed owned is by Minimum purchased. an If Death entity, the Benefit the Annuity Annuitant has must be age 80 or less. Death Benefit when the Death BenefitAccount is Value calculated. is Under less the than basic Purchase Death Payments Benefit, minus amounts proportional are withdrawals. added to yourrepresented Account when Value withdrawn. when the Death Benefit. joint Owners, the oldest Owner must be age 75Calculation or of less. Enhanced If the Beneficiary Annuity ProtectionIf is Optional you owned purchase by Death an the Benefit entity, Enhanced the Beneficiary1. Annuitant Protection must Optional be Death age Benefit, 75 the the or basic Death less. Death Benefit Benefit is described calculated above as follows: 2. 50% of the “ E The Enhanced Beneficiary Protection Optional Deathoffset Benefit federal can and provide state additional taxes amounts payable tofor on your you any Beneficiary may taxable that depend gains may on in be your your usedtaxes particular Annuity to on circumstances, at your including the Annuity other time should financial of you resources your die that death. during may Whether the be this accumulation available benefit period. to is No your appropriate benefit Beneficiary is to payable pay if death occurs on or after the Annuity Date. (this applies solely to APEX II,If you ASL purchased your II, Annuity before and NovemberState 18, of 2002 XT6) New and York, were the not following a optional resident death of benefits the were offered: Previously Offered Optional Death Benefits Appendix E — Description and Calculation of continued , the Death Benefit equals the greater of: , the Death Benefit equals the greatest of: The Anniversary Value is the Accountafter Value such as anniversary of less each the anniversary sum ofA of the Proportional all Issue Reduction “Proportional Date is Reductions” plus a since the reduction such sumdrawal to anniversary. of as the all compared value Purchase to being Payments the measured on Account caused or withdraw Value by $2,000 as a (a of withdrawal, 20% the equaling reduction), date the we of percentageincreasing will the of at reduce withdrawal. the the both For with- appropriate your example, interest Anniversary if rate Value your by and Account 20%. the Value amount is determined $10,000 by and Purchase you Payments “due proof of death”; and at a rate of 5.0%, subjectwithdrawals to as a of limit the of Owner’s 200% date of of the death; difference and between the sum of all Purchase Payments and the sum of all Allocations); and Proportional Reductions since the Death Benefit Target Date. • • Calculation of Guaranteed Minimum DeathThe Benefit Guaranteed Minimum Death Benefit depends on whether deathIf occurs the before Owner or dies after before the the Death1. Death Benefit Benefit Target Target Date. Date the Account Value in the Sub-accounts plus the2. Interim Value of any the Fixed sum Allocations of (no all MVA) Purchase as Payments of minus the the date sum we of receive all in Proportional writing Reductions, each3. increasing daily until the the Owner’s “Highest date Anniversary of Value” death onThe or amount immediately determined preceding by the this Owner’s calculation datedecreased is of by increased death. any by Proportional any Reductions Purchase since Paymentsunder such received certain date. after circumstances. The the amount Owner’s calculated date in of Items death 1 and &If 3 the above Owner may dies be on reduced or by1. after any the Credits Death Benefit Target the Account Date Value as of the date we2. receive in writing “due the proof greater of of death” Item (an 2 MVA & may 3 be above applicable on to the amounts DeathThe in Benefit amount any Target calculated Fixed Date in Item plus the 1 sum above of may allAnnuities be Purchase reduced with Payments by joint less any Owners the Credits sum underFor of certain Annuities all circumstances. with Joint Owners, theused Death to Benefit determine is the calculated Death as Benefitthe shown Target Beneficiary. above Date. If except NOTE: the that If the sole youAnnuity age primary and and of continue your Beneficiary the the spouse is oldest contract own the of instead the the surviving of Annuity Joint receiving spouse, jointly, Owners theAnnuities we then is Death owned will the Benefit. pay by surviving the entities spouse DeathFor can Benefit to elect Annuities to owned assume by ownershipdetermine of an the the Death entity, Benefit the Targetif Date. Death applicable). Payment Benefit of the is Death calculated Benefit is as basedCan shown on I the above terminate death the except of optional thecircumstances? that Annuitant Death the (or Benefits? Contingent age Do Annuitant, of theYou optional can the terminate Death Annuitant the Benefits is Enhanced terminateUpon Beneficiary used under termination, Protection other to you Optional will Death Benefit beterminate and required automatically the to Guaranteed pay on Minimum ainterpretation the Death pro-rata of Benefit Annuity the portion at Code of any Date. and the time. applicable We annual regulations. charge may for also the terminate benefit. Both any optional optional Death Benefits Death will Benefit if necessary to comply with our Appendix E — Description andPreviously Calculation Offered of Optional Death Benefits (this applies solely to APEX II, ASL II, and XT6)

APPENDIX E AMERICAN SKANDIA ANNUITIES PROSPECTUS E-2 APPENDIX E AMERICAN SKANDIA ANNUITIES PROSPECTUS E-3 tive market performance. On the date we receive due proof of death, Purchase Payments minus proportional withdrawals, or Account Value date of death, whichever is greater. Therefore, the basic Death Benefit = $75,000 + $12,500 = $87,500 50% of the “Death Benefit Amount” less Purchase Payments reduced by proportional withdrawals. PLUS 50% of the “Death Benefit Amount” less Purchase Payments reduced by proportional withdrawals. PLUS Purchase PaymentsAccount ValueBasic Death BenefitDeath Benefit AmountAmount Payable = Under Enhanced Beneficiary Protection Optional Death Benefit $50,000 = = = $75,000 $75,000 $75,000 – $50,000 = $25,000 We first deduct the amount of the charge pro-rata from the Account Value in the variable investment options. We only deduct the Please refer to the section entitled “Tax Considerations” for additional considerations in relation to the optional Death Benefit. NOTE: The examples below do not include Credits which may be recovered by American Skandia under certain circumstances. If you surrender the Annuity, elect to begin receiving annuity payments or terminate the benefit on a date other than an anniversary Assume that the Owner’s Account Valuedeath, has the been Account decreasing Value due is to $45,000. declinesAccount The in Value basic market less Death performance. the Benefit On amount is the of calculated dateDeath any as we Benefit Credits Purchase receive is applied Payments due equal within minus proof to 12-months proportional of $50,000. prior withdrawals,basic The to or Death Enhanced the Benefit Beneficiary date ($50,000) Protection of Optional death, Death whichever Benefit is is greater. equal Therefore, to the the basic amount payable under the Examples with market decline is equal to $75,000.Benefit The ($75,000) Enhanced Beneficiary Protection Optional Death Benefit is equal to the amount payable under the basic Death charge pro-rata from the Fixed Allocationscharge. to If the your extent Annuity’s there Account is Value insufficientyour is Account Annuity. insufficient Value We to in will pay the notify the variable you charge, investmentPayment if we options to your may to continue Account deduct pay your Value your the Annuity. is remaining insufficient Account to Value pay and the terminate charge and allow you toADDITIONAL submit CALCULATIONS an additional Purchase Examples of Enhanced Beneficiary ProtectionThe Optional following are Death examples Benefit of Calculation howa the $50,000 Enhanced initial Beneficiary Purchase Protection Payment Optional is Deaththere made Benefit is and is one that calculated. Owner no Each who withdrawals example is are assumes age made that 50 prior on to the the Issue Owner’s Date death. and Each that example all assumesExample Account that with Value market is increase maintained inAssume the that variable the investment Owner’s options. Account Value has been increasing due to posi of the Issue Date, the chargeIn will all be subsequent prorated. years, During it the would first be year prorated after from the the Issue last Date, anniversary the of charge the will Issue be Date. prorated from the Issue Date. What are the charges forWe the deduct a optional charge Death from Benefits? your AccountDeath Value Benefit if costs you 0.25% elect of to Account purchase Value.for either The these optional Guaranteed death Death Minimum benefits Benefit. Death are The Benefit deducted Enhanced costs in1. Beneficiary 0.30% arrears Protection of each the Annuity current Year. on Death No each Benefit. charge2. anniversary The applies charges of after the the Issue Annuity when Date. Date; Account We3. Value deduct the is charge: transferred to if our you general4. surrender account your prior Annuity; to and the if Annuity you Date; choose to terminate the benefit (Enhanced Beneficiary Protection Optional Death Benefit only) the Account Value is $75,000. Theless basic the Death amount Benefit of is calculated any as Credits applied within 12-months prior to the continued = $50,000 + $0 = $50,000 Purchase PaymentsAccount Value =Basic Death BenefitDeath Benefit $50,000 Amount =Amount = Payable = Under Enhanced Beneficiary Protection Optional Death $50,000 Benefit $40,000 $50,000 – $50,000 = $0 In this example you would receive no additional benefit from purchasing the Enhanced Beneficiary Protection Optional NOTE: The examples below do not include Credits which may be recovered by American Skandia under certain circumstances. Example of market increase followed byAssume that decrease the Owner’s Account Valuesary increased date significantly the during Account the Value first is sixsubsequently $90,000. years falls During following to the the $80,000 seventh Issue on Annuity Date. the Year, Onthe date the the end we Account sixth of receive Value anniver- any due increases previous proof to period of assubsequent ($90,000), death. high period. which The as The occurred Death $100,000 Account on Benefit but Value the would then on sixth bePayments the anniversary, the increased date although Highest by we the Anniversary 5.0% receive Account Value annually due Value at ($73,872.77). proof was of higher death during ($80,000) the is lower, as is the sum of all prior Purchase Assume that the Owner’s Account Valueproof has of generally death, been the increasing Account due Value toBenefit is positive would $90,000. market be The performance. the Highest On Account Anniversary the Value Value datePurchase ($90,000) at we Payments because the receive increased it end due by is of 5.0% greater any annually than previous ($73,872.77). the period Highest isExample Anniversary $72,000. of Value The market ($72,000) Death decrease or the sumAssume of that prior the Owner’s Account Valuecontract generally anniversary. increased On until the the date fifth we anniversaryof receive but any due generally previous proof has period of been is death, decreasing $54,000. the since($73,872.77) The Account the because Death Value fifth it Benefit is is would $48,000. greater be The than the Highest the sum Anniversary Highest of Value Anniversary prior at Value Purchase the ($54,000) Payments end or increased the by Account 5.0% Value annually ($48,000). Example of market increase Appendix E — Description andPreviously Calculation Offered of Optional Death Benefits (this applies solely to APEX II, ASL II, and XT6) Death Benefit. Examples of Guaranteed Minimum DeathThe Benefit following are Calculation examples of howPurchase the Payment Guaranteed is Minimum made Death and Benefit that iswho no calculated. is withdrawals Each age are example 50 made assumes on prior that the to a Issue the $50,000 Date Owner’s initial and death. that Each all example Account assumes Value that is there maintained is in one the Owner variable investment options.

APPENDIX E AMERICAN SKANDIA ANNUITIES PROSPECTUS E-4 APPENDIX F AMERICAN SKANDIA ANNUITIES PROSPECTUS F-1 II, APEX II refers to ® . III, and XTra Credit SIX refers to American Skandia XTra SM Selecting the Variable Annuity That’s Right for You II, ASAP III refers to American Skandia Advisor Plan ® SIX. You should consider the investment objectives, risks, charges and expenses of an investment in any Annuity carefully before

• Your age; • The amount of your• investment and How any long planned you future intend• deposits to into hold the Your the annuity; desire annuity to (also make referred• withdrawals to from as Your the investment investment annuity; time return horizon); objectives; • The effect of optional• benefits that Your may desire be to elected, minimize and costs and/or maximize return associated with the annuity. American Skandia APEX Credit investing. The prospectus for the Annuitiesvariable as annuities well and as underlying the investment underlying options. portfoliomore Your prospectuses of registered contain these Financial this variable Professional and annuities can other and provide informationgeous the you about for underlying with the you portfolios prospectuses given and for your can one individual help or needs. you Please decide read upon the the prospectuses Annuity carefully that before would investing. be most advanta- American Skandia Annuity Product Comparison Below is a summary of American Skandia’s actively sold annuity products. ASL II refers to American Skandia Lifevest American Skandia Life Assurance Corporation offersbenefits several that deferred may variable be annuity appropriate products. for Eachthese you annuity annuities based has may on different be your features available individual and to financialsold. you, situation You depending and can on how verify your you which state intend of of to these residence use annuities and/or the is the annuity.The available broker-dealer Not different to through all features you which of and by your benefits speaking annuity may to was withdrawal include your charge variations Financial as on Professional well your or as ability calling different to 1-800-752-6342. various ongoing access optional fees funds benefits and in such charges your as you annuity guaranteed pay without living to the benefits stay imposition or in ofAmong death the a the benefit contract. factors protection. Additionally, you differences should may consider existfollowing: when on choosing which annuity product may be most appropriate for your individual needs are the The following chart outlines some offeatures, the such different as features those for noted each in activelyyou the sold plan chart, American to may Skandia use increase Annuity. when the The selecting cost availabilityinvestment your of of carefully annuity. the optional before You contract. investing. should Therefore also you consider should the carefully investment consider objectives, whichIn risks, features addition, charges the and hypothetical expenses illustrations of below an holding reflect periods. the These account charts value are and meant surrendercomparable to value value reflect of of how each each your variable of annuities annuity the can over annuities grow a (which or variety reflects decrease of Your the depending registered charges on Financial associated market Professional with conditions can the and provide annuities) the document you under and with the can prospectuses assumptions guide for noted. you one through or more of these variable annuities noted in this That’s Right for You Appendix F — Selecting the Variable Annuity Fixed Allocation Available (As of May 1, 2005 currently offering durations of: 1,2,3,5,7,10 years) Yes. The amount of the credit applied to a purchase payment is based on the year the purchase payment is received, for the first 6 years of the contract as follows: For contracts issued on or after February 13, 2006, subject to state availability, the credit percentages for each year, starting with the first, are 6.50%, 5.00%, 4.00%, 3.00%, 2.00%, and 1.00%. Generally, for contracts issued prior to February 13, 2006, the credit percentage for the first year is 6.0%. Lesser of $35 or 2% of Account Value 10 Years (9%, 9%, 8.5% ,8%, 7%, 6%, 5%, 4%, 3%, 2%) 1.65% years 1-10; 0.65% years 11+ continued Fixed Allocation Available (As of May 1, 2005 currently offering durations of: 1,2,3,5,7,10 years) Yes. Effective for Contracts issued on or after February 13, 2006, subject to state availability. Generally, we apply a Loyalty Credit to your Annuity’s Account Value at the end of your fifth contract year (i.e., on your fifth Contract Anniversary). The Loyalty Credit is equal to 0.50% of total Purchase Payments made during the first four contract years less the cumulative amount of withdrawals made (including the deduction of any CDSC amounts) through the fifth Contract Anniversary Lesser of $35 or 2% of Account Value* 8 Years (7.5%, 7%, 6.5%, 6%, 5%, 4%, 3%, 2%) 0.65% years 9+ Fixed Allocation Available (As of May 1, 2005 currently offering durations of: 1,2,3,5,7,10 years) Contracts issued on or after June 20, 2005, subject to state availability. Generally, we apply a Loyalty Credit to your Annuity’s Account Value at the end of your fifth contract year (i.e., on your fifth Contract Anniversary). The Loyalty Credit is equal to 2.75% (2.25% for contracts issued between June 20, 2005 and February 13, 2006) of total Purchase Payments made during the first four contract years less the cumulative amount of withdrawals made (including the deduction of any CDSC amounts) through the fifth Contract Anniversary Lesser of $35 or 2% of Account Value* (8.5%, 8%, 7%, 6%) ASL II APEX II ASAP III XTra Credit SIX All options available All options available All options available All options available Fixed Allocation Available (As of May 1, 2005 currently offering durations of: 1,2,3,5,7,10 years) No Yes. Effective for 1.65% 1.65% 1.25% years 1-8; Lesser of $35 or 2% of Account Value* $15,000No Maximum AgeNone 85 $10,000 4 Years $1,000 80 $10,000 75 Variable Investment Options Fixed Allocation (early withdrawals are subject to a Market Value Adjustment) Contract Credit Insurance and Distribution Charge Annual Maintenance Fee Minimum Investment Maximum Issue Age Withdrawal Charge Schedule Appendix F — Selecting the Variable Annuity That’s Right for You

APPENDIX F AMERICAN SKANDIA ANNUITIES PROSPECTUS F-2 APPENDIX F AMERICAN SKANDIA ANNUITIES PROSPECTUS F-3 The greater of: purchase payments less proportional withdrawals or account value (no MVA Applied) less an amount equal to the credits applied within the 12 months prior to date of death. EBP II, HDV, HAV, Combo 5% Roll-up / HAV GRO/ GRO Plus, GMWB, GMIB, Lifetime Five, Spousal Lifetime Five Available after initial withdrawal period 4: The greater of: purchase payments less proportional withdrawals or account value (no MVA Applied). EBP II, HDV, HAV, Combo 5% Roll-up/ HAV GRO/ GRO Plus, GMWB, GMIB, Lifetime Five, Spousal Lifetime Five Available after initial withdrawal period The greater of: purchase payments less proportional withdrawals or account value (no MVA Applied). withdrawal period EBP II, HDV, HAV, Combo 5% Roll-up / HAV GRO/ GRO Plus, GMWB, GMIB, Lifetime Five, Spousal Lifetime Five ASL II APEX II ASAP III XTra Credit SIX Prior to age 85: The greater of: purchase payments less proportional withdrawals or account value (no MVA Applied). On or after age 85: account value Not Available Available after initial Enhanced Beneficiary Protection (EBPII) Highest Daily Value (HDV) Highest Anniversary Value (HAV) Combo 5% Roll Up/ HAV GRO/ GRO Plus, Guaranteed Minimum Withdrawal Benefit (GMWB), Guaranteed Minimum Income Benefit (GMIB), Lifetime Five, Spousal Lifetime Five 3 2 1 expenses is computed by adding portfolioand management then fees, dividing 12b-1 by fees the and number otherexpense of expenses waivers portfolios. of that For all might purposes of apply of the and the underlying are illustrations, portfolios described we in do the not prospectus reflect fee any table. expense reimbursements or ASAP III, the Annuity Value and Surrender Value also reflect the addition of any applicable credits. and the charges that are deducted from the Annuity at the Separate Account level as follows • The Separate Account level charges include the Insurance Charge and Distribution Charge (as applicable). • 1.44% based on the fees and expenses of the underlying portfolios as of December 31,2005. The arithmetic average of all fund Optional Death Benefits (for an additional cost) Living Benefits (for an additional cost) Annuity Rewards Basic Death Benefit • The Annuity Value and Surrender Value are further reduced by the annual maintenance fee. For XTra Credit SIX, APEX II, and • No subsequent deposits or• withdrawals are The made hypothetical from gross the rates Annuity. of return are reduced by the arithmetic average of the fees and expenses of the underlying portfolios Hypothetical Illustration The following examples outline the valuesurrender of at each the annuity end as of well each as of the the amount Annuity thatAn years would initial specified. be investment The available of values to $100,000 shown an is below investor made are as into based a each on result Annuity the of earning following full a assumptions: gross rate of return of 0% and 6% respectively. Value Surrender Value continued Contract Value Surrender Value Contract Value Surrender Value Contract Value Surrender APEX II ASAP III Xtra Credit SIX ASL II Value Contract 123 96,9424 93,9365 91,021 88,4426 88,197 85,9367 85,458 84,0218 85,470 97,335 82,1979 82,815 94,700 85,458 80,242 92,136 85,470 88,835 77,748 89,640 82,815 87,700 87,211 80,242 85,636 103,243 85,333 77,748 83,640 100,044 83,019 82,211 80,767 94,743 96,942 81,333 79,051 91,044 93,936 80,019 91,022 78,767 88,442 96,942 88,197 79,051 85,936 93,936 85,458 84,022 91,021 96,942 82,804 82,197 88,197 93,936 80,231 80,458 85,458 78,804 91,021 82,804 77,231 88,197 80,231 85,458 77,737 82,804 75,320 80,231 77,737 75,320 Yr 101112 75,33013 72,98614 70,714 75,33015 68,512 72,98616 66,377 70,71417 64,308 77,371 68,51218 62,302 75,727 66,37719 60,358 74,117 64,308 77,37120 58,473 72,541 62,302 75,72721 56,647 70,998 60,358 74,11722 54,876 69,486 77,737 58,473 72,54123 53,159 68,006 76,083 56,647 70,99824 51,495 66,557 74,466 54,876 69,486 75,73725 49,882 65,138 72,882 53,159 68,006 76,083 48,319 63,748 71,332 51,495 66,557 74,466 46,803 62,387 72,976 69,813 49,882 65,138 72,882 61,055 70,705 68,326 48,319 63,748 71,332 59,751 68,503 66,871 46,803 62,387 69,813 72,976 58,473 66,368 65,445 61,055 68,326 70,705 57,222 64,299 64,049 59,751 66,871 68,503 55,997 62,294 62,682 58,473 65,445 66,368 60,350 61,344 57,222 64,049 64,299 58,465 60,033 55,997 62,682 62,294 56,639 58,750 61,344 60,350 54,868 57,493 60,033 58,465 53,152 56,263 58,750 56,639 51,488 57,493 54,868 49,876 56,263 53,152 48,312 51,488 46,797 49,876 45,328 48,312 46,797 45,328 Assumptions: a. $100,000 initialb. investment Fund Expensesc. = 1.44% No optionald. death benefits or living Annuity benefits was elected e. issued on or after Surrender February value 13, assumes 2006 surrender 2 days before policy anniversary 0% Gross Rate of Return The Contract Value assumes no surrender,Issue while Date the of Surrender the Value Annuity assumes (“Annuity awithdrawal Anniversary”), 100% on therefore surrender the reflecting two Annuity the days Anniversary withdrawal prior would charge tolower. be applicable the The subject to anniversary values to that of that the Annuity the you withdrawal year. actually charge Notemake experience applicable that here under to a differ an the from Annuity next your will Annuity circumstances, be year,provide however different which you the than usually with relative what is a values is personalized for depicted illustration each herefor upon Annuity if the request). reflected any contract Shaded below of year. cells will the Multiple represent remain assumptions shaded the the we cells product same. represent with (We a the will tie highest between customer two Surrender or Value more annuities. Appendix F — Selecting the Variable Annuity That’s Right for You

APPENDIX F AMERICAN SKANDIA ANNUITIES PROSPECTUS F-4 APPENDIX F AMERICAN SKANDIA ANNUITIES PROSPECTUS F-5 Value Surrender Value Contract Value Surrender Value Contract Value Surrender Value Contract Value Surrender APEX II ASAP III Xtra Credit SIX ASL II Value Contract 12 102,7423 105,5674 108,4705 94,242 111,4536 97,567 114,518 101,4707 103,159 120,492 105,4538 106,427 123,805 114,518 109,7989 127,210 120,492 94,659 113,276 130,708 123,805 99,427 116,864 103,298 127,210 121,082 109,420 107,276 130,708 124,917 112,393 111,864 115,448 128,874 117,082 100,920 118,586 133,762 121,917 103,393 121,811 106,948 126,874 125,125 102,742 110,586 133,762 128,530 105,567 114,811 108,470 132,028 119,125 102,742 111,453 135,623 123,530 105,567 114,518 108,470 128,028 117,667 111,453 132,623 120,902 114,518 124,227 117,667 127,643 120,902 124,227 127,643 Yr 1011 134,30212 137,99513 141,789 134,30214 145,688 137,99515 149,694 141,789 138,83816 153,811 145,688 144,10617 158,040 149,694 149,57418 138,838 162,386 153,811 155,25019 144,106 166,851 158,040 161,14120 149,574 139,316 171,439 162,386 167,25521 155,250 144,562 176,153 166,851 173,60222 161,141 150,011 137,316 180,997 171,439 180,18923 167,255 155,667 144,562 185,974 176,153 187,02724 173,602 161,537 150,011 131,153 191,088 180,997 194,12325 180,189 167,631 155,667 134,759 196,343 185,974 201,489 187,027 173,955 161,537 138,465 131,153 201,742 191,088 209,135 194,123 180,520 167,631 142,272 134,759 196,343 217,071 201,489 187,333 173,955 146,184 138,465 201,742 225,307 209,135 194,405 180,520 150,204 142,272 233,857 217,071 201,746 187,333 154,334 146,184 242,730 225,307 209,365 194,405 158,578 150,204 233,857 217,273 201,746 162,939 154,334 242,730 225,481 209,365 167,419 158,578 234,000 217,273 172,023 162,939 242,843 225,481 176,753 167,419 234,000 181,613 172,023 242,843 186,607 176,753 191,739 181,613 197,011 186,607 191,739 197,011 Assumptions: a. $100,000 initialb. investment Fund Expensesc. = 1.44% No optionald. death benefits or living Annuity benefits was elected e. issued on or after Surrender February value 13, assumes 2006 surrender 2 days before policy anniversary 6% Gross Rate of Return rs 11+. ty’s account value on the 02% and 2.80%; APEX II –3.02% continued 5678 1461-1825 1826-2190 2191-2555 2556-2919 7 2191-2554 9 2921-3285 5789 1461-1825 2556-2920 4 2555 2921-2955 1096-1459 10 3286-3649 10 3286-3649 102728 3650 9491-9855 9856-10219 28-30 10220-10950 11-30 3651-10950 11-26 3651-9490 h benefit will at least equal the Annui 9+, XTra Credit SIX –3.02% and 2.80% in years 1–10 and –2.06% and 3.82% in yea 729 6 1826-2190 730 8 2920 1460 4 1460 1425 9 2956-3285 7301 107337 3650 1459 4 1460 1-3 1-1095 1825 1-5 1-1825 to the 0% and 6% gross rates of return, respectively as follows: ASLII –3. guaranteed death benefit so that the deat Total Days Year Actual Days Total Days Year Actual Days “Living Benefit Programs” section in the Prospectus. the terms of the Annuity Rewards benefit are met. Over 30 Years, days won Over 30 Years, days won o the “Death Benefit” section in the Prospectus. and 2.80%; ASAP III –2.64% and 3.21% in years 1–8 and –2.06% and 3.82% in years effective date of the Annuity Rewards benefits, if APEX II APEX II ASAP III ASAP III Xtra Credit SIX Xtra Credit SIX ASL II ASL II 6% Gross Rate of Return 4) These reductions result in hypothetical net rates of return corresponding Days listed assume 365 days per year and* do not account for Annual Maintenance Leap1) Fee Years. is waived for For account more2) values information of on $100,000 these or benefits, more. For refer more3) t information on these benefits, The refer Annuity to Rewards the benefit offers Owners an ability to increase the In addition, the following charts indicateSurrender the Value days amongst (measured the from products the listed Issue given Date) the in above which assumptions. each annuity0% product Gross would Rate have of the Return highest Appendix F — Selecting the Variable Annuity That’s Right for You

APPENDIX F AMERICAN SKANDIA ANNUITIES PROSPECTUS F-6 PRIVACY NOTICE

This notice describes how we handle information about you that we have relating to individual annuity products sold by the Prudential companies listed below. We call this information “customer data” or just “data”. If you have other Prudential products or relationships, a separate privacy notice will describe the practices that apply to those products or relationships. DATA WE COLLECT We collect the data that you give us on account applications and through our websites. We also collect data about your account with us. We do this to serve you, including offering products and services to you. The data includes, for example: • your name and address, • investment goals, and • account balance. PROTECTING CUSTOMER DATA The only persons who are authorized to have access to customer data are those who need it to do their jobs. They must protect it and keep it confidential. We maintain physical, electronic, and procedural safeguards that comply with federal standards to protect customer data. SHARING DATA We may share customer data with the Prudential companies and with other companies so that they can perform services for us or on our behalf. For example, this may include disclosures to: • provide customer service, • account maintenance, • maintain software, • service financial intermediaries who have relationships with our customers, or • for administration. We may also disclose customer data as permitted or required by law, for example: • to law enforcement officials, • in response to subpoenas, • to regulators, or • to prevent fraud. We do not disclose data to other companies to allow them to market their products or services to you. FORMER CUSTOMERS If your relationship with us ends, we will continue to handle data about you as this Notice describes. AFFILIATES This Notice is provided to our annuity customers on behalf of the Prudential companies listed below. American Skandia Life Assurance Corporation American Skandia Marketing, Incorporated The Prudential Insurance Company of America Pruco Life Insurance Company Pruco Life Insurance Company of New Jersey Prudential Investment Management Services LLC

Prudential, Prudential Financial and the Prudential Financial logo are registered service marks of The Prudential Insurance Company of America, Newark, NJ and affiliates. The Prudential Insurance Company of America, 751 Broad Street, Newark, NJ, 07102-3777. Your Financial Security, Your Satisfaction & Your Privacy IFS-A104904 Ed. 06/2005 This disclosure is not part of the Prospectus. This page intentionally left blank American Skandia Life Assurance Corporation (American Skandia) Individual Retirement Annuity (IRA) Disclosure Statement

This Disclosure Statement and your IRA Endorsement contain important information about your IRA. Please read these documents carefully. For additional information please consult Internal Revenue Service Publication 590, your Annuity Prospectus, or any district office of the Internal Revenue Service. Except where otherwise indicated or required by law, references to “you” or “your” in this Disclosure Statement shall be understood to mean the IRA owner or a surviving spouse that elects to treat the Annuity as his or her own IRA. Revocation You (the IRA owner or a designated beneficiary under an inherited IRA that has transferred the IRA from another annuity provider) may revoke your American Skandia IRA for a refund within seven (7) days after you receive it by mailing or delivering a written notice of cancellation to: American Skandia Life Assurance Corporation P. O. Box 7040, Bridgeport, CT 06601-7038 For Overnight delivery: American Skandia Life Assurance Corporation One Corporate Drive, Shelton CT 06484. The notice of cancellation shall be deemed mailed on the date of the postmark (or if sent by certified or registered mail, the date of certification or registration) if it is deposited in the mail in the United States in an envelope, or other appropriate wrapper, first class postage prepaid, properly addressed. The amount of the refund will equal the greater of (1) a full refund of the Purchase Payment (without regard to sales commissions (if any), administrative expenses or fluctuations in market value) or (2) the current Account Value of the Annuity as of the Valuation Day the refund request is received at our Office (without regard to sales commissions (if any) or administrative expenses). After seven (7) days, the terms of your right to cancel will revert back to the terms of the Right to Cancel provision of your Annuity. Please refer to the Right to Cancel provision of your Annuity for additional information. IRA Requirements An IRA is a personal savings plan that lets you save for retirement on a tax-advantaged basis. All IRAs must meet certain requirements as set forth in the Internal Revenue Code (the “Code”). This IRA is an Individual Retirement Annuity established pursuant to Code section 408(b). An individual retirement annuity must be issued in your name as the owner, and either you or your beneficiaries who survive you are the only ones who can receive the benefits or payments. An IRA must meet all of the following requirements: 1. Your interest in the Annuity, and that of any beneficiary following your death, must be nonforfeitable. 2. The Annuity must provide that you cannot transfer any portion of it to any person other than the insurance company . 3. There must be flexible premiums so that if your compensation changes, your payment can also change. 4. The Annuity must provide that annual contributions cannot exceed the maximum provided by law. 5. Distributions must begin by April 1 of the year following the year in which you reach age 70 1⁄2.

This disclosure is not part of the Prospectus. American Skandia Life Assurance Corporation (American Skandia) Individual Retirement Annuity (IRA) Disclosure Statement continued

Eligibility You are eligible to establish and contribute to a traditional IRA if: 1. You (or, if you file a joint return, your spouse) received taxable compensation during the year, and 2. You were not age 70 1⁄2 by the end of the year. You can have a traditional IRA whether or not you are covered by any other retirement plan. However, you may not be able to deduct all of your contributions if you or your spouse are covered by an employer retirement plan. If both you and your spouse have compensation and are under age 70 1⁄2, each of you can set up an IRA. You cannot both participate in the same IRA. Compensation includes wages, salaries, tips, professional fees, bonuses, other amounts received for professional services and taxable alimony and separate maintenance payments. Compensation does not include earnings or profits from property (such as rental income, interest income, and dividend income), pension or annuity income, deferred compensation received, income from a partnership for which you do not provide services that are a material income producing factor, and any amounts you exclude from income, such as foreign earned income and housing costs. Contribution Limits The most that can be contributed to your traditional IRA is the smaller of 100% of your compensation (defined earlier) that you must include in income for the year, or the limits described in the following table:

IRA Contribution Limits

Year Limit

2002-2004 $3,000

2005-2007 $4,000

2008 $5,000

2009 and thereafter $5,000*

*For tax years 2009 and thereafter the $5,000 contribution limit will be increased by cost of living adjustments (in $500 increments). Catch-up Contributions Beginning with tax year 2002, individuals age 50 and older may make additional “catch-up” contributions to their traditional IRA. These “catch-up” contributions are in addition to the contribution limits listed above. The maximum “catch-up” contribution amounts are as follows:

IRA “Catch-up” Contribution Limits

Year Limit

2002-2005 $500

2006 and thereafter $1,000

Spousal IRA Contribution Limits If you file a joint return and your taxable compensation is less than that of your spouse, the most that can be contributed for the year to your IRA is the smaller of the IRA contribution amount described in the “IRA Contribution Limit” chart above, or the total compensation includable in the gross income of both you and your spouse for that year, reduced by your spouse’s IRA contribution for the year to a traditional IRA and any contributions for the year to a Roth IRA on behalf of your spouse.

This disclosure is not part of the Prospectus. Simplified Employee Pension (SEP) Contributions A separate IRA may be established for use by your employer as part of a SEP arrangement. The SEP rules permit an employer to contribute to each participating employee’s SEP-IRA up to 25% of the employee’s compensation or $44,000 (for 2006, indexed annually), whichever is less. The compensation taken into account is limited ($220,000 for 2006, indexed annually). These contributions are funded by the employer. Your employer may contribute to your SEP-IRA on your behalf even if you are age 70 1⁄2 or over, and even if you are covered under a qualified plan for the year. You can make contributions to your SEP-IRA independent of employer SEP contributions. You can deduct them the same way as contributions to a traditional IRA. However, your deduction may be reduced or eliminated because, as a participant in a SEP, you are covered by an employer retirement plan. It is up to you and your employer to ensure that contributions in excess of normal IRA limits are made under a valid SEP-IRA. Timing of Contributions Contributions can be made to your traditional IRA for a year at any time during the year or by the due date for filing your return for that year, not including extensions. You do not have to contribute to your traditional IRA every tax year, even if you can. Deducting Contributions Generally, you can deduct the lesser of the contributions to your traditional IRA for the year, or the general limit (or the spousal IRA limit, if applicable). However, if you or your spouse were covered by an employer sponsored retirement plan, you may not be able to deduct your traditional IRA contributions. If you or your spouse is an active participant in an employer plan during the year, the contribution to your traditional IRA (or your spouse’s traditional IRA) may not be deductible in whole or in part. If you are covered by a retirement plan at work, consult the table below to determine if your IRA contribution is deductible. If your modified adjusted gross income (AGI) is below the lower limit, your contribution is fully deductible. If your modified AGI is above the upper limit, your contribution is not deductible. If your modified AGI falls between the lower and upper limits, your contribution will be only partially deductible. Your Modified AGI is your AGI as shown on your income tax return, plus traditional IRA deductions, student loan interest deductions, deductions for qualified tuition and related expenses, foreign earned income exclusions (if you file Form 1040), foreign housing exclusions or deductions (if you file Form 1040), exclusions of qualified bond interest shown on IRS Form 8815 and exclusions of employer-paid adoption expenses shown on IRS Form 8839.

Table of Lower and Upper Limits

Year Single Married Filing Jointly

Lower Limit Upper Limit Lower Limit Upper Limit

2002 $34,000 $44,000 $54,000 $64,000

2003 $40,000 $50,000 $60,000 $70,000

2004 $45,000 $55,000 $65,000 $75,000

2005 $50,000 $60,000 $70,000 $80,000

2006 $50,000 $60,000 $75,000 $85,000

2007 and thereafter $50,000 $60,000 $80,000 $100,000

If you are married and file a joint return and one spouse is an active participant in an employer sponsored retirement plan and the other spouse is not, a contribution to an IRA for the spouse that is not an active participant in an employer sponsored retirement plan will be fully deductible at modified AGI levels below $150,000. This deduction will be phased out at modified AGI levels between $150,000

This disclosure is not part of the Prospectus. American Skandia Life Assurance Corporation (American Skandia) Individual Retirement Annuity (IRA) Disclosure Statement continued

and $160,000. If you are married filing separately, your deductible IRA contribution will be phased out between zero dollars and $10,000 of modified AGI. IRA Contribution Credit For tax years beginning after December 31, 2001, if you make eligible contributions to an employer-sponsored retirement plan, an eligible deferred compensation plan, or an IRA, you may be able to take a tax credit. The amount of the credit you can get is based on the contributions you make and your credit rate. Your credit rate can be between 10% and 50%, depending on your adjusted gross income. The maximum contribution taken into account is $2,000 per taxpayer. On a joint return, up to $2,000 is taken into account for each spouse. You cannot claim the credit if you are under age 18, are a full-time student, someone else claims an exemption for you on their tax return or if your AGI is above the following limits: $50,000 if your filing status is married filing jointly, $37,500 if your filing status is head of household, or $25,000 if your filing status is either single, married filing separately, or qualifying widow(er) with a dependent child. The credit is not available for tax years beginning after 2006. Rollover Contributions Generally, a rollover is a tax-free distribution to you of cash or other assets from one retirement plan that you contribute to another retirement plan. 1. Rollovers from one IRA to the same or another IRA: You can withdraw, tax-free, all or part of the assets from one traditional IRA if you reinvest them in the same or another traditional IRA. The rollover must be completed within 60 days after the date you receive the distribution from the first IRA. For distributions made after December 31, 2001, the IRS may waive the 60-day requirement where the failure to do so would be against equity or good conscience, such as in the event of a casualty, disaster, or other event beyond your reasonable control. Generally, if you make a tax-free rollover of any part of a distribution from a traditional IRA, you cannot, within a 1-year period, make a tax-free rollover of any later distribution from the same IRA. You also cannot make a tax-free rollover of any amount distributed, within the same 1-year period, from the IRA into which you made the tax-free rollover. The 1-year period begins on the date you receive the IRA distribution, not on the date you roll it over into an IRA. Amounts that cannot be rolled over: Amounts that must be distributed each year under the required minimum distribution rules are not eligible for rollover. In addition, if you inherit a traditional IRA from someone other than your spouse, you cannot roll it over or allow it to receive a rollover contribution. 2. Rollovers from an employer retirement plan into an IRA: If you receive an eligible rollover distribution from your (or your deceased spouse’s) employer’s qualified pension, profit-sharing or stock bonus plan, annuity plan, tax sheltered annuity plan (403(b) plan), or governmental deferred compensation plan (governmental 457(b) plan), you can roll over all or part of it into a traditional IRA (the 60-day rule discussed above applies). In addition, you can roll over after-tax or nondeductible contributions from your qualified employer plan or 403(b) arrangement into a traditional IRA (such rollovers of after-tax contributions may only be done by a direct rollover from the distributing plan to the traditional IRA). Amounts that cannot be rolled over: Required minimum distributions; hardship distributions; a series of substantially equal periodic payments paid over your life or life expectancy, the life or life expectancy of you and your beneficiary or for a period of 10 years or more; corrective distributions of excess contributions or excess deferrals; loans treated as distributions (unless your benefit is reduced (offset) to repay the loan); dividends on employer securities; or, generally, distributions you receive as a beneficiary are not eligible to be rolled over. Withholding: If an eligible rollover distribution is paid directly to you, the payor must withhold 20% of it. The amount withheld is part of the distribution. If you rollover less than the full amount of the distribution, you may have to include in your income the amount you do not roll over. However, you can make up the withheld amount with funds from other sources. To avoid withholding you can request a direct rollover from the payor.

This disclosure is not part of the Prospectus. 3. Rollover from an IRA to an employer retirement plan: You can rollover tax-free a distribution from your traditional IRA made after 2001 into a qualified plan, 403(b) plan, or governmental 457(b) plan. The part of the distribution that you can roll over is the part that would otherwise be taxable (includible in your income). Qualified plans may, but are not required to, accept such rollovers. Rules applicable to other rollovers, such as the 60-day rule apply. Trustee to Trustee Transfers A transfer of funds in your traditional IRA from one trustee directly to another is not a rollover. Because there is no distribution to you, the transfer is tax-free and not reportable. Because the transfer is not a rollover, it is not affected by the 1-year waiting period requirement. This waiting period is discussed later in the section entitled, Rollover Contributions. Distributions You may request a distribution from your IRA at any time. However, distributions received prior to your attaining age 59 1⁄2 may be subject to a 10% additional tax. Distributions subject to the 10% additional tax must be reported on IRS Form 5329.

Exceptions to age 59 1⁄2 rule If you receive a distribution prior to attaining age 59 1⁄2, you may not have to pay the 10% additional tax if you meet one or more of the following: • You have unreimbursed medical expense that are more than 7.5% of your adjusted gross income. • The distributions are not more than the cost of your medical insurance if you are unemployed and meet certain requirements. • You are disabled within the meaning of Code section 72(m)(7). • You are the beneficiary of a deceased IRA owner. • You are receiving distributions that are part of a series of substantially equal periodic payments. • The distributions are not more than your qualified higher education expenses for yourself or other qualified individual. • You use the distributions to buy, build, or rebuild a first home (subject to a $10,000 lifetime limit). • The distribution is due to an IRS levy of the qualified plan. In addition, you generally can take a tax-free withdrawal of contributions if you do it before the due date for filing your tax return for the year in which you made them. You can do this if: (1) you did not take a deduction for the contribution; and (2) you withdraw any interest or other income earned on the contribution (you can take into account any loss on the contribution while it was in your IRA when calculating the amount that must be withdrawn). In this case, even if you are under 59 1⁄2, the 10% additional tax may not apply. Required Minimum Distributions If you are the owner of a traditional IRA, you must start receiving distributions from your IRA by April 1 of the year following the year you reach age 70 1⁄2 (the “required beginning date”). After the year you reach age 70 1⁄2, these minimum distributions are required by December 31 of each subsequent year. Minimum distributions during your lifetime are generally calculated by dividing the value of your IRA as of the end of the year preceding the year for which the required Minimum Distribution is being figured by a life expectancy factor found in Table III of IRS Publication 590. This table is often referred to as the Uniform Lifetime Table. IRA owners whose spouses are their sole designated beneficiary and are more than 10 years younger may be able to use the life expectancy factor found in Table II of IRS Publication 590 to calculate their lifetime minimum distributions. This table is often referred to as the Joint and Last Survivor Table. You may elect to have us calculate and distribute minimum distributions annually if your Annuity is being used for certain qualified purposes under the Internal Revenue Code. We calculate such amounts assuming the minimum distribution amount is based solely on the value of your Annuity. The minimum distribution amounts applicable to you may depend on other annuities, savings or investments of which we are unaware. You may elect to have the minimum distribution paid out monthly, quarterly, semi-annually or annually. Required minimum distributions must be made in intervals of no longer than one year. If you die before your required beginning date, minimum distributions for years after the year of your death are generally based on your designated beneficiary’s life expectancy. If there is no designated beneficiary, the entire interest must be distributed by the end of the calendar year containing the fifth anniversary of your death. If you die after your required beginning date, minimum distributions for years after the year of your death are generally based on the longer of your designated beneficiary’s life expectancy or your remaining life

This disclosure is not part of the Prospectus. American Skandia Life Assurance Corporation (American Skandia) Individual Retirement Annuity (IRA) Disclosure Statement continued

expectancy. If there is no designated beneficiary, minimum distributions for years after the year of your death are generally based on your remaining life expectancy. If your sole designated beneficiary is your surviving spouse, the spouse may treat the Annuity as his or her own IRA provided the spouse meets the requirements of the terms of the Annuity. Except as may be required by law, all provisions of the Annuity that do not specifically terminate upon your death will then be applied to the spouse. Your surviving spouse is deemed to have made this election if he or she makes a regular IRA contribution to the Annuity, makes a rollover to or from the Annuity, or fails to commence minimum distributions following your death. Except where the Designated Beneficiary is a surviving Spouse that has elected to treat the Annuity as his or her own IRA, if the Annuity is an inherited IRA that has been transferred by a Designated Beneficiary from another annuity provider, distributions will be made to the Designated Beneficiary (or any successor Beneficiary if applicable upon the death of the Designated Beneficiary) in accordance with the rules governing Minimum Distributions on or after the owner’s death. For this purpose, the original owner of the inherited IRA will be treated as the IRA owner in applying these provisions. If distributions are less than the required Minimum Distribution for a year, you may have to pay a 50% excise tax on the amount not distributed as required. This requires that you file a Form 5329 with the IRS. Taxation of Distributions In general, distributions from a traditional IRA are taxable in the year you receive them. Exceptions to the general rule are rollovers, tax-free withdrawals of contributions, and the return of nondeductible contributions. Distributions from traditional IRAs that you include in income are taxed as ordinary income. Distributions from your traditional IRA may be fully or partly taxable, depending on whether your IRA includes any nondeductible contributions. If only deductible contributions were made to your traditional IRA (or IRAs, if you have more than one), distributions are fully taxable. If you made nondeductible contributions to any of your traditional IRAs, you have a cost basis (investment in the contract) equal to the amount of those contributions. These nondeductible contributions are not taxed when they are distributed to you. Only the part of the distribution that represents nondeductible contributions (your cost basis) is tax-free. If your traditional IRA includes nondeductible contributions and you receive a distribution, each distribution is partly nontaxable and partly taxable until all of your basis has been distributed. You must use IRS Form 8606 to figure how much of your distribution is tax-free. Inherited IRAs The beneficiaries of a traditional IRA generally must include in their gross income any distributions they receive. If you inherit a traditional IRA from someone other than your spouse, you cannot treat it as your own IRA. You cannot rollover any part of it or roll any amount over into it. You cannot make any contributions to an inherited traditional IRA. Prohibited Transactions Generally, a prohibited transaction is any improper use of your traditional IRA by you, your beneficiary, or any disqualified person. Disqualified persons include any fiduciary with respect to your IRA and members of your family (spouse, ancestor, lineal descendant, and any spouse of a lineal descendant). The following are examples of prohibited transactions with a traditional IRA. • Borrowing money from it. • Selling property to it. • Receiving unreasonable compensation for managing it. • Using it as security for a loan. • Buying property for personal use with IRA funds. Generally, if you or your beneficiary engages in a prohibited transaction in connection with your traditional IRA at any time during the year, the annuity stops being an IRA as of the first day of that year. If this occurs, the IRA is treated as distributing all of its assets to you at their fair market values on the first day of the year. You or your beneficiary may be required to include the fair market value of all of the IRA assets in your gross income for that year if you engage in a prohibited transaction.

This disclosure is not part of the Prospectus. If you borrow money against your traditional IRA annuity, you must include in your gross income the fair market value of the Annuity as of the first day of your tax year. If you use part of your traditional IRA as security for a loan, that part is treated as a distribution and is included in your gross income. In both cases you may have to pay the 10% additional tax on early distributions, discussed above. Excess Contributions Generally, an excess contribution is the amount contributed to your traditional IRAs that is more than the smaller of: 1. Your taxable compensation for the year, or 2. The maximum contribution limit (including any catch-up contributions). The taxable compensation limit applies whether your contributions are deductible or nondeductible. Contributions for the year you reach age 70 1⁄2 and any later year are also excess contributions. In general, if the excess contribution for a year and any earnings on it are not withdrawn by the date your return for the year is due (including extensions), you are subject to a 6% tax. You must pay the 6% tax each year on excess amounts that remain in your traditional IRA at the end of your tax year. You will not have to pay the 6% tax if you withdraw an excess contribution made during a tax year and you also withdraw any interest or other income earned on the excess contribution. You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be withdrawn. You must complete your withdrawal by the date your tax return for that year is due, including extensions. Once the 6% tax has been imposed for a year, you can avoid an additional 6% tax for the following tax year if the excess contribution is (1) withdrawn before the end of the following tax year, or (2) treated as a current IRA contribution for the following year. Distributions of excess contributions must be reported on IRS Form 5329. Restriction on Investments No portion of your IRA may be invested in life insurance contracts. In addition, you may not invest the assets of your IRA in collectibles within the meaning of Code Section 409(m)). If you invest in collectibles, the amount invested is considered distributed to you in the year invested and may be subject to the 10% additional tax discussed above. Estate and Gift Taxes Any amount held in your IRA upon your death may be subject to estate taxes. Transfers of your IRA assets to a Beneficiary during your life may be subject to gift taxes.

This disclosure is not part of the Prospectus. American Skandia Life Assurance Corporation (American Skandia) Roth Individual Retirement Annuity (Roth IRA) Disclosure Statement

This Disclosure Statement and your Roth IRA Endorsement contain important information about your Roth IRA. Please read these documents carefully. For additional information please consult Internal Revenue Service (IRS) Publication 590, your Annuity, Prospectus, the Roth IRA Endorsement attached to your Annuity or any district office of the IRS. Except where otherwise indicated or required by law, references to “you” or “your” in this Disclosure Statement shall be understood to mean the Roth IRA owner or a surviving Spouse that elects to treat the Annuity as his or her own Roth IRA. Right to Cancel You (the Roth IRA owner or a designated beneficiary under an inherited Roth IRA that has transferred the Roth IRA from another annuity provider) may revoke your American Skandia Roth IRA for a refund within seven (7) days after you receive it by mailing or delivering a written notice of cancellation to: AMERICAN SKANDIA LIFE ASSURANCE CORPORATION P. O. BOX 7040 BRIDGEPORT, CT 06601-7040 For Overnight delivery: AMERICAN SKANDIA LIFE ASSURANCE CORPORATION ONE CORPORATE DRIVE SHELTON, CT 06484. The notice of cancellation shall be deemed mailed on the date of the postmark (or if sent be certified or registered mail, the date of certification or registration) if it is deposited in the mail in the United States in an envelope, or other appropriate wrapper, first class postage prepaid, properly addressed. The amount of the refund will equal the greater of (1) a full refund of the Purchase Payment (without regard to sales commissions (if any), administrative expenses or fluctuations in market value) and (2) the current Account Value of the Annuity as of the Valuation Day the refund request is received at our Office (without regard to sales commissions (if any) or administrative expenses). After seven (7) days, the terms of your right to cancel will revert back to the terms of the Right to Cancel provision of your Annuity. Please refer to the Right to Cancel provision of your Annuity for additional information. What is a Roth IRA? A Roth IRA is an individual retirement plan that provides certain tax advantages. For instance, earnings within a Roth IRA are not subject to tax and Qualified Distributions (as defined below) from Roth IRAs are tax-free. Unlike a traditional IRA, you cannot deduct contributions to a Roth IRA. Also, you can make contributions to a Roth IRA after you reach age 70 1⁄2 and can leave amounts in your Roth IRA as long as you live. Like a traditional IRA, however, your interest in your Roth IRA (and that of any Beneficiary following your death) is nonforfeitable and nontransferable to any person other than the issuer. Eligibility Generally, you can contribute to a Roth IRA if you have taxable Compensation (as defined below) and your Modified AGI (as defined \ below) is less than: • $160,000 for married filing jointly or qualifying widow(er),

This disclosure is not part of the prospectus. American Skandia Life Assurance Corporation (American Skandia) Roth Individual Retirement Annuity (Roth IRA) Disclosure Statement continued

• $10,000 for married filing separately and you lived with your spouse at any time during the year, and • $110,000 for single, head of household, or married filing separately and you did not live with your spouse at any time during the year. Compensation — Compensation includes wages, salaries, tips, professional fees, bonuses and other amounts received for professional services. It also includes commissions, self-employment income, taxable alimony and separate maintenance payments. Modified AGI — Your Modified AGI for Roth IRA purposes is your adjusted gross income (AGI) as shown on your income tax return, less any income resulting from the conversion of an IRA (other than a Roth IRA) to a Roth IRA plus traditional IRA deductions, student loan interest deductions, deductions for qualified tuition and related expenses, foreign earned income exclusions, foreign housing exclusions or deductions, exclusions of qualified bond interest shown on IRS Form 8815 and exclusions of employer-paid adoption expenses shown on IRS Form 8839. Contribution limit reduced — If your modified AGI is above a certain limit, your contribution is gradually reduced. If you are married filing jointly; this limit is $150,000. If you are single, head of household, qualifying widow(er) or married filing separately and you did not live with your spouse at any time during the year this limit is $95,000. If you are married filing separately, your allowable Roth IRA contribution will be phased out between zero dollars and $10,000 of modified AGI. If contributions are made to both Roth IRAs and traditional IRAs, your contribution limit for Roth IRAs generally is the same as your limit would be if contributions were made only to Roth IRAs, but then reduced by all contributions (other than employer contributions under a SEP or SIMPLE IRA plan) for the year to all IRAs other than Roth IRAs. Roth IRA for your Spouse — You can contribute to a Roth IRA for your spouse provided the contributions to a Roth IRA for your spouse satisfy the Spousal IRA limit (discussed in the section titled “Contribution Limits”) and your modified AGI is less than the limits discussed above. Age limit for contributions — There is no age limit for contributions. Contribution Limits The maximum amount that may generally be contributed to your Roth IRA is as follows:

Roth IRA Contribution Limits

Year Limit

2002-2004 $3,000

2005-2007 $4,000

2008 $5,000

2009 and thereafter $5,000*

* For tax years 2009 and thereafter the $5,000 contribution limit will be increased by cost of living adjustments (in $500 increments). Beginning with tax year 2002, individuals age 50 and older may make additional “catch-up” contributions to their Roth IRA. These “catch-up” contributions are in addition to the contribution limits listed above. The maximum “catch-up” contribution amounts are as follows:

Roth IRA “Catch-up” Contribution Limits

Year Limit

2002-2005 $500

2006 and thereafter $1,000

This disclosure is not part of the prospectus. Types of contributions accepted — Contributions to your Roth IRA will only be accepted if made in cash (i.e., a check). Due date of contributions — You can make contributions to your Roth IRA for a year at any time during the year or by the due date of your income tax return for that year (not including extensions). Refund of contributions — Any refund of contributions must be applied before the close of the calendar year following the year of the refund toward the payment of future contributions, paid-up annuity additions, or the purchase of additional benefits. State income tax issues — Some states have not conformed their laws to the new federal tax laws. These states may have laws that conflict with the limits discussed above. You should consult a tax advisor in your state to ensure that your state has approved these contribution limit increases. Conversions You can convert a traditional IRA to a Roth IRA. The conversion is treated as a rollover, regardless of the conversion method used. You will owe taxes on the portion of the conversion which represents earnings and other amounts that were not previously taxed. You can convert amounts from a traditional IRA to a Roth IRA in any of the following three ways: 1. Rollover — You can receive a distribution from a traditional IRA and roll it over (contribute it) to a Roth IRA within 60 days after the distribution. 2. Trustee to trustee transfer — You can direct the trustee of the traditional IRA to transfer an amount from the traditional IRA to the trustee of the Roth IRA. 3. Same trustee transfer — If the trustee of the traditional IRA also maintains the Roth IRA, you can direct the trustee to transfer an amount from the traditional IRA to the Roth IRA. Requirements — You can convert amounts from a traditional IRA into a Roth IRA if, for the tax year you make the withdrawal from the traditional IRA, both of the following requirements are met: 1. Your modified AGI is not more than $100,000. 2. You are not a married individual filing a separate return. The 10 percent early distribution penalty shall not apply to rollovers or conversions from a traditional IRA to a Roth IRA, regardless of whether you qualify for any exceptions to the 10 percent penalty. A traditional IRA to Roth IRA Rollover does not count towards the one rollover per 12 months rule described under Internal Revenue Code (Code) Section 408(d)(3). Recharacterizations You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. This is called recharacte- rizing the contribution. To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a trustee-to-trustee transfer. If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of the first IRA. The contribution will not be treated as having been made to the second IRA unless the transfer includes any net income allocable to the contribution, you report the recharacterization on your tax return for the year during which the contribution was made, and you treat the contribution as having been made to the second IRA on the date that it was actually made to the first IRA. No deduction is allowed for the contribution to the first IRA and any net income transferred with the recharac- terized contribution is treated as earned in the second IRA. Reconversions You cannot convert and reconvert an amount during the same taxable year, or if later, during the 30-day period following a recharacterization. If you reconvert during either of these periods, it will be a failed conversion. Rollovers/Transfers Funds distributed from your Roth IRA may be rolled over to another Roth IRA of yours if the requirements of Code Section 408(d)(3) are met. A proper Roth IRA to Roth IRA rollover is completed if all or part of the distribution is rolled over not later than 60 days after you receive the distribution. Generally, if you make a rollover of any part of a distribution from a Roth IRA, you cannot, within a 1-year period, make a rollover of any later distribution from that same Roth IRA. You also cannot make a rollover of any amount distributed, within the

This disclosure is not part of the prospectus. American Skandia Life Assurance Corporation (American Skandia) Roth Individual Retirement Annuity (Roth IRA) Disclosure Statement continued same 1-year period, from the Roth IRA into which you made the rollover. Roth IRA assets may not be rolled over to other types of IRAs (e.g., traditional, SEP and SIMPLE IRAs, etc.). No Rollovers from Employer Plans —You may not roll over distributions from your employer’s qualified retirement plan, governmental 457 plan, or 403(b) arrangement into your Roth IRA. If distributions from such plans have been rolled over into a traditional IRA, however, you may be able to convert such traditional IRAs to Roth IRAs, subject to the general rules for traditional IRA to Roth IRA conversions described above. Distributions You do not include in your gross income Qualified Distributions (defined below) or distributions that are a return of your regular contributions from your Roth IRA. You also do not include distributions from your Roth IRA that you roll over tax-free to another Roth IRA. You may have to include part of other distributions in your income. Qualified Distributions — A Qualified Distribution is any payment or other distribution from your Roth IRA that meets the following requirements: 1. It is made after the 5-taxable-year period beginning with the first taxable year for which a contribution was made to a Roth IRA set up for your benefit, and 2. The payment or distribution is: a. Made on or after the date you reach age 59 1⁄2, b. Made because you are disabled, c. Made to a beneficiary or to your estate after your death, or d. Used to buy, build, or rebuild a first home (subject to a $10,000 lifetime limit). Nonqualified Distributions — If you do not meet the requirements for a Qualified Distribution, any earnings you withdraw from your Roth IRA will be included in your gross income and, if you are under 59 1⁄2, will be subject to a 10% additional tax unless you meet one of several exceptions discussed below in the section entitled “Additional tax for early distribution.” However, when you take a nonqualified distribution, your basis (the contributions you deposited to the account) will generally be removed first. Therefore, your nonqualified distributions will not be taxable to you until your withdrawals exceed the amount of your contributions. Special rules may apply to the distribution of conversion amounts. Beneficiary Payments If you die, the entire amount remaining in your account will, at the election of your designated beneficiary or beneficiaries, either: (a) be distributed by December 3l of the year containing the fifth anniversary of your death, or (b) be distributed in equal or substantially equal payments over the life or life expectancy of your designated beneficiary or beneficiaries. Your designated beneficiary or beneficiaries must elect either option (a) or (b) above by December 31 of the calendar year following the calendar year of your death. If no election is made, distribution will be made in accordance with (a). In the case of distributions under (b), distributions must commence by December 31 of the year following the year of your death. If your spouse is your designated beneficiary, distributions need not commence until December 31 of the year you would have attained age 70 1⁄2, if later. If your sole designated beneficiary is your surviving spouse, the spouse also may treat the Annuity as his or her own Roth IRA provided the spouse meets the requirements of the terms of the Annuity Except as may be required by law, all provisions of the Annuity that do not specifically terminate upon your death will then be applied to the spouse. If there is no designated beneficiary, the entire interest must be distributed by the end of the calendar year containing the fifth anniversary of your death. Except where the designated beneficiary is a surviving spouse that has elected to treat the Annuity as his or her own Roth IRA, if the Annuity is an inherited Roth IRA that has been transferred by a designated beneficiary from another annuity provider, distributions will be made to the designated beneficiary (or any successor beneficiary if applicable upon the death of the designated beneficiary) in accordance with the rules governing minimum distributions on or after the owner’s death. For this purpose, the original owner of the inherited Roth IRA will be treated as the Roth IRA owner in applying these provisions. If a distribution to your designated beneficiary is not a qualified distribution, it is generally includible in the beneficiary’s gross income in the same manner as it would have been included in your income had it been distributed to you during your lifetime.

This disclosure is not part of the prospectus. Federal Excise and Additional Taxes Additional tax for early distribution — If you are under age 59 1⁄2 and receive a nonqualified Roth IRA distribution, an additional tax of 10 percent will apply to the amount includible in income, unless one of the exception situations discussed later in this section applies. The 10% additional tax also applies (subject to the same exceptions) if you take a distribution from your Roth IRA within the 5-year period starting with the first day of your ax year in which you convert an amount from a traditional IRA to a Roth IRA. In this case, the 10% additional tax is paid on any amount attributable to the amount converted that you had to include in income at the time of the conversion. A separate 5-year period applies to each conversion, and is not necessarily the same as the 5-year period used to determine whether a distribution is Qualified Distribution. (Qualified Distributions are discussed above, in the section entitled “Qualified Distributions”). You may not have to pay the 10% additional tax discussed in this section in the following situations: • You have reached age 591⁄2. • You have unreimbursed medical expense that are more than 7.5% of your adjusted gross income. • The distributions are not more than the cost of your medical insurance if you are unemployed and certain requirements are met. • You are disabled within the meaning of Code section 72(m)(7). • You are receiving distributions that are part of a series of substantially equal periodic payments. • The distributions are not more than your qualified higher education expenses for yourself or other qualified individual. • You use the distributions to buy, build, or rebuild a first home (subject to a $10,000 lifetime limit). • The distribution is due to an IRS levy of the qualified plan. • The owner of the Roth IRA is deceased and you are the beneficiary. Excess contribution excise tax — An excise tax of 6 percent is imposed upon any excess contribution you make to your Roth IRA. This tax will apply each year in which an excess remains in your Roth IRA. An excess contribution is any contribution amount which exceeds your contribution limit, excluding amounts properly and timely rolled over from a Roth IRA or properly converted from a traditional IRA. Contribution limits are discussed above, in the section entitled “Contribution Limits.” Excess accumulation excise tax — One of the requirements listed above is your designated beneficiary(ies) is required to take certain minimum distributions after your death. An excise tax of 50 percent is imposed on the amount of any required minimum distribution which should have been taken but was not. Penalty reporting — You must file Form 5329 with the Internal Revenue Service to report and remit any additional or excise taxes. Miscellaneous Commingling Assets — The assets of your Roth IRA cannot be commingled with other property except in a common trust fund or common investment fund. Life Insurance — No portion of your Roth IRA may be invested in life insurance contracts. Collectibles — You may not invest the assets of your Roth IRA in collectibles (within the meaning of Code Section 409(m)). A collectible is defined as any work of art, rug or antique, metal or gem, stamp or coin, alcoholic beverage, or other tangible personal property specified by the Internal Revenue Service. However, specially minted United States gold and silver bullion coins and certain gold, silver, platinum or palladium bullion (as described in Code Section 408(m)(3)) are also permitted as Roth IRA investments. No required minimum distributions — As the owner of your Roth IRA, you are is not required to take minimum distributions from the Roth IRA commencing at age 70 1⁄2 during your lifetime (as is required for traditional, SEP and SIMPLE IRAs). Estate and gift taxes — Any amount held in your Roth IRA upon your death may be subject to estate taxes. Transfers of your Roth IRA assets to a beneficiary during your life may be subject to gift taxes. Special tax treatment — Capital gains treatment and the favorable ten year forward averaging tax authorized in certain circumstances by IRC Section 402 do not apply to Roth IRA distributions. Prohibited Transactions — If you or your beneficiary engage in a prohibited transaction with your Roth IRA, as described in IRC Section 4975, your Roth IRA will lose its tax-exempt status and you or your beneficiary must generally include the value of the earnings in your account in your gross income for that taxable year. If you borrow money against your Roth IRA Annuity, you must include in your

This disclosure is not part of the prospectus. American Skandia Life Assurance Corporation (American Skandia) Roth Individual Retirement Annuity (Roth IRA) Disclosure Statement continued gross income the fair market value of the earnings in the Annuity as of the first day of your tax year. If you use part of your Roth IRA as security for a loan, that part is treated as a distribution and may be includible in your gross income. In both cases you may have to pay the 10% additional tax on early distributions, discussed above.

This disclosure is not part of the prospectus. American Skandia Life Assurance Corporation (A Prudential Financial Company)

FINANCIAL DISCLOSURE

Flexible Premium Deferred Annuities Used to Fund an Individual Retirement Annuity or Roth Individual Retirement Annuity Program Advisor Plan III (“ASAP III”), APEX II (“APEX II”), XTra Credit SIX (“XT6”), Life Vest II (“ASL II”) 1. Each of the Annuities listed above and certain riders, endorsements, amendments or schedules made a part of each such Annuity have been approved by the Internal Revenue Service (“IRS”) as to form for use as an Individual Retirement Annuity as described in Section 408(b) of the Internal Revenue Code (“Code”). The IRS approval is a determination as to form only and does not represent a determination of the merits of the Annuity. The Annuities listed above have not yet been approved by the IRS as to form for use as a Roth Individual Retirement Annuity (“Roth IRA”) as described in Section 408A of the Code. An application will be made to the IRS for approval of each of the Annuities listed above and certain riders, endorsements, amendments or schedules made a part of each such Annuity as to form for use as a Roth IRA. When obtained, IRS approval is a determination only as to form and does not represent a determination of the merits of the Annuity. Please contact the Company with any questions regarding IRS approval. 2. Within seven days after you receive your Annuity, you may cancel it by delivering or mailing it to the representative through whom you bought it or to the Prudential Annuity Service Center at the address indicated on your IRA Disclosure Statement or Roth IRA Disclosure Statement, as applicable. The notice of cancellation shall be deemed mailed on the date of the postmark (or if sent by certified or registered mail, the date of certification or registration) if it is deposited in the mail in the United States in an envelope, or other appropriate wrapper, first class postage prepaid, properly addressed. The amount of the refund will equal the greater of (1) the Purchase Payment (without regard to sales commissions (if any), administrative expenses or fluctuation in market value) or (2) the current Account Value of the Annuity as of the Valuation Day the refund request is received at our Office (without regard to sales commissions (if any) or administrative expenses). After seven (7) days, the terms of your right to cancel will revert back to the terms of the Right to Cancel provision of your Annuity. Please refer to the Right to Cancel provision of your Annuity for additional information. 3. Key financial information is fully disclosed in the prospectus for these Annuities. This includes all charges, which may be applied to your interest in determining the net amount available to you under the applicable Annuity, and how those charges are computed; and how annual earnings are computed and allocated. This includes, but is not limited to, information on Annuity and variable investment option (referred to as “Sub-account” in your annuity) expenses — such as insurance charges and portfolio management fees, which affect your Account Value. The following is a summary of some of the charges and expenses related to these Annuities. No charges are deducted from your Purchase Payments when payments are made. Please note, in certain jurisdictions premium taxes may be required to be deducted from your Purchase Payments. Please consult the prospectus for more details. Funds withdrawn or transferred from one of the Fixed Allocations may be subject to a market value adjustment (“MVA”). An MVA may result in upward and downward adjustments of your Account Value and values are not guaranteed. The MVA applies to amounts withdrawn or transferred outside of the 30 days immediately preceding the end of a Guarantee Period. With the exception of ASL II, death benefit amounts paid during the accumulation phase are not subject to an MVA. Fixed Allocations are not available in all states.

This disclosure is not part of the prospectus. American Skandia Life Assurance Corporation (A Prudential Financial Company) continued

Each Purchase Payment may be subject to a contingent deferred sales charge (“CDSC”). The amount of the CDSC will depend on the Purchase Payments withdrawn and the number of Annuity anniversaries that have elapsed since the Issue Date. CDSCs apply to each Purchase Payment and are determined using the following percentages, which are multiplied by the amount of the Purchase Payment being liquidated: For Annuities other than those purchased in New York:

Number of Annuity Contingent Deferred Sales Charge Anniversaries Since Issue Date Percentage

ASAP III APEX II XT6 ASL II

0 7.5% 8.5% 9.0% 0.0%

1 7.0% 8.0% 9.0% 0.0%

2 6.5% 7.0% 8.5% 0.0%

3 6.0% 6.0% 8.0% 0.0%

4 5.0% 0.0% 7.0% 0.0%

5 4.0% 0.0% 6.0% 0.0%

6 3.0% 0.0% 5.0% 0.0%

7 2.0% 0.0% 4.0% 0.0%

8 0.0% 0.0% 3.0% 0.0%

9 0.0% 0.0% 2.0% 0.0%

10+ 0.0% 0.0% 0.0% 0.0%

This disclosure is not part of the prospectus. For Annuities purchased in New York:

Number of Annuity Contingent Deferred Sales Charge Anniversaries Since Issue Date Percentage

ASAP III APEX II XT6 ASL II

0 7.0% 7.0% 9.0% 0.0%

1 6.0% 6.0% 9.0% 0.0%

2 5.0% 5.0% 8.5% 0.0%

3 4.0% 4.0% 8.0% 0.0%

4 3.0% 0.0% 7.0% 0.0%

5 2.0% 0.0% 6.0% 0.0%

6 1.0% 0.0% 5.0% 0.0%

7 0.0% 0.0% 4.0% 0.0%

8 0.0% 0.0% 3.0% 0.0%

9 0.0% 0.0% 2.0% 0.0%

10+ 0.0% 0.0% 0.0% 0.0%

The charts above represent the maximum CDSC percentages applicable to each of the Annuities; however, during each Annuity Year you may withdraw a limited “free withdrawal amount” without incurring a CDSC. Please note that there is no free withdrawal amount under ASL II because there is no CDSC associated with this Annuity. For the Annuities other than ASL II, the maximum free withdrawal amount during each Annuity Year when a CDSC would otherwise apply to a partial withdrawal or surrender of your Purchase Payments is 10% of all Purchase Payments. This free withdrawal amount is not cumulative and is recalculated each Annuity anniversary. Free withdrawals are not treated as a withdrawal of Purchase Payments for purposes of calculating any applicable CDSC on a subsequent withdrawal or surrender. Withdrawals of amounts in excess of the maximum free withdrawal amount are treated as a withdrawal of Purchase Payments and are subject to a CDSC. Any earnings are also free withdrawal amounts, but are available only after all Purchase Payments have been withdrawn. An example of a CDSC is illustrated below: Since CDSCs are assessed based on number of Anniversaries since Issue Date, the same withdrawal percentages apply to each Purchase Payment withdrawn. For instance (with the exception of Annuities purchased in New York), if you purchased an ASAP III Annuity with $10,000 and then made an additional Purchase Payment of $1,000 on the fourth Annuity anniversary, the applicable CDSC percentages would be the same for each Purchase Payment. On the fourth Annuity anniversary, the percentage associated with the initial $10,000 payment would be 5% and that associated with the subsequent $1,000 Purchase Payment would also be 5%. The maximum CDSC on the fourth Annuity anniversary would be $500 ($10,000 x 5%) for the initial Purchase Payment and $50 ($1,000 x 5%) for the subsequent Purchase Payment. We will charge a Maintenance Fee of the lesser of $35 or 2%, or the amount governed by law, of the Account Value under each of the Annuities. This fee is assessed on each Annuity anniversary and if a full surrender of the Annuity occurs. The Maintenance Fee may be less in some states. For ASAP III, APEX II and ASL II, we will waive this fee if the Account Value is greater than or equal to $100,000 at the time the charge is applied.

This disclosure is not part of the prospectus. American Skandia Life Assurance Corporation (A Prudential Financial Company) continued

4. An additional tax of 10% may be imposed on distributions taken from the Annuity prior to the Owner reaching 59 1⁄2 years of age. 5. In the Accumulation Period values under each of the Annuities are dependent upon the investment results of one or more of the Sub-accounts and cannot be guaranteed or projected. An investment in a variable annuity involves investment risks, including possible loss of value. Fixed rate investment options do provide certain minimum interest rate guarantees. Transfers between the Sub-accounts and Fixed Allocation transfers may be subject to some limitations and charges. 6. The amount paid to a broker dealer firm to cover both the individual representative’s commission and other distribution expenses are set forth in your prospectus. In certain situations the actual amount may be less. Alternative compensation schedules may be available that provide a lower initial commission plus an annual trail commission based on all or a portion of the Account Value. We may also provide compensation to the distributing firm for providing ongoing service to you in relation to the Annuity. Commissions and other compensation paid in relation to the Annuity do not result in any additional charge to you or to the Sub-accounts. 7. From time to time we may offer various optional benefits and features that may be made part of your Annuity at a cost to you. Please refer to those sections of the prospectus that explain any optional benefits we make available for a detailed description of any fees, charges, or financial impact on your Annuity should you elect to purchase any optional benefits.

This disclosure is not part of the prospectus. This page intentionally left blank PLEASE SEND ME A STATEMENT OF ADDITIONAL INFORMATION THAT CONTAINS FURTHER DETAILS ABOUT THE AMERICAN SKANDIA ANNUITY DESCRIBED IN PROSPECTUS (PLEASE CHECK ONE) ASAPIII-PROS (05/2006), APEX2PROS (05/2006), , ASL2PROS (05/2006), XT6PROS (05/2006).

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(city/state/zip code) PRSRT STD U.S. POSTAGE PAID The Prudential Insurance Company of America LANCASTER, PA 751 Broad Street PERMIT NO. 1793 Newark, NJ 07102-3777

Variable Annuity Issued by: Variable Annuity Distributed by:

AMERICAN SKANDIA LIFE AMERICAN SKANDIA ASSURANCE CORPORATION MARKETING, INCORPORATED A Prudential Financial Company A Prudential Financial Company One Corporate Drive One Corporate Drive Shelton, Connecticut 06484 Shelton, Connecticut 06484 Telephone: 1-800-752-6342 Telephone: 203-926-1888 http://www.americanskandia.prudential.com http://www.americanskandia.prudential.com

MAILING ADDRESSES:

AMERICAN SKANDIA — VARIABLE ANNUITIES P.O. Box 7960 Philadelphia, PA 19176

EXPRESS MAIL: AMERICAN SKANDIA — VARIABLE ANNUITIES 2101 Welsh Road Dresher, PA 19025