Prudential Financial, Inc. (NYSE: PRU) today announced the closing of its acquisition of Allstate Financial's variableannuity business through a reinsurance transaction. This makesPrudential the third largest provider of advisor-sold* variableannuity products as measured by assets under administration andmanagement and the fourth largest as measured by sales (Source: VARDSas of 12/31/05).

Prudential's initial investment in the business, reflecting total consideration to Allstate, related taxes, and capital requirements, isapproximately $591 million. This amount reflects a price adjustmentpaid to Allstate for market movements between signing and closing.Over the course of a transition period of up to 24 months fromclosing, Prudential will assume the administration of AllstateFinancial's in-force variable annuities, with account values ofapproximately $17 billion (value as of March 31, 2006).

"The acquisition of Allstate Financial's variable annuity business greatly increases our scale and distribution opportunities," said David Odenath, president of Prudential Annuities. "Our priorities in2006 will be to integrate the business, launch our variable annuityproducts in Allstate's proprietary channel, and build relationshipswithin Allstate's non-proprietary channel."

As part of the transaction, Prudential is granted exclusive distribution rights to sell variable annuity products throughAllstate's proprietary distribution force of approximately 13,700independent contractors and financial professionals. The transactionalso enables Prudential to build and enhance its relationships withAllstate's non-proprietary Broker Dealer Division channel including anumber of major, national wirehouses and regional securities firms.With respect to Allstate's Bank channel, Allstate Financial willcontinue to market variable annuity products through its extensive setof bank distribution relationships by transitioning to anAllstate-branded, Prudential-designed variable annuity.

Prudential Financial companies, with approximately $547 billion intotal assets under management as of March 31, 2006, serve individualand institutional customers worldwide and include The PrudentialInsurance Company of America, one of the largest life insurancecompanies in the United States. These companies offer a variety ofproducts and services, including life insurance, mutual funds,annuities, pension and retirement-related services and administration,asset management, banking and trust services, real estate brokeragefranchises, relocation services and, through a joint venture, retailsecurities brokerage services. For more information, visitwww.prudential.com.

* Advisor-sold excludes group/retirement plan contracts

Annuities are issued by The Prudential Insurance Company ofAmerica, Newark, NJ or its affiliates. Securities products andservices offered through Pruco Securities, LLC, 751 Broad Street,Newark, NJ 07102-3777. All are Prudential Financial companies. Each issolely responsible for its own financial condition and contractualobligations.

Investors should consider the contract and underlying portfolios'investment objectives, risks, charges and expenses carefully beforeinvesting. This and other important information are contained in theprospectuses, which can be obtained from your financial professional.You should read the prospectuses carefully before investing
 
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