XTra Credit Premier - Prudential Annuities

FEES AND CHARGESWHAT ARE THE CONTRACT FEES AND CHARGES?Contingent Deferred Sales Charge: We do not deduct a sales charge from Purchase Payments you make to your Annuity. However,we may deduct a Contingent Deferred Sales Charge or CDSC if you surrender your Annuity or when you make a partial withdrawal.The CDSC reimburses us for expenses related to sales and distribution of the Annuity, including commissions, marketing materialsand other promotional expenses. The CDSC is calculated as a percentage of your Purchase Payment being surrendered or withdrawnduring the applicable Annuity Year. For purposes of calculating the CDSC, we consider the year following the date we receive aPurchase Payment as Year 1. The amount of the CDSC applicable to each Purchase Payment decreases over time, measured from thedate the Purchase Payment is applied. The CDSC percentages are shown below.YEARS 1 2 3 4 5 6 7 8 9+CHARGE (%) 8.5 8.5 8.5 8.5 7.5 5.5 3.5 1.5 0.0Each Purchase Payment has its own CDSC period. When you make a withdrawal, we assume that the oldest Purchase Payment isbeing withdrawn first so that the lowest CDSC is deducted from the amount withdrawn. After eight (8) complete years from the dateyou make a Purchase Payment, no CDSC will be assessed if you withdraw or surrender that Purchase Payment. Under certaincircumstances you can withdraw a limited amount of Account Value without paying a CDSC. This is referred to as a "FreeWithdrawal." Free Withdrawals are not treated as a withdrawal of Purchase Payments for purposes of calculating the CDSC on asubsequent withdrawal or surrender. Withdrawals of amounts greater than the maximum Free Withdrawal amount are treated as awithdrawal of Purchase Payments and will be assessed a CDSC. For purposes of calculating the CDSC on a surrender or a partialwithdrawal, the Purchase Payments being withdrawn may be greater than your remaining Account Value or the amount of yourwithdrawal request. This is most likely to occur if you have made prior withdrawals under the Free Withdrawal provision or if yourAccount Value has declined in value due to negative market performance.We may waive the CDSC under certain medically-related circumstances or when taking a Minimum Distribution from an Annuitypurchased as a "qualified" investment. Free Withdrawals, Medically-Related Surrenders and Minimum Distributions are eachexplained more fully in the section entitled "Access to Your Account Value".Transfer Fee: Currently, you may make twenty (20) free transfers between investment options each Annuity Year. We will charge$10.00 for each transfer after the twentieth in each Annuity Year. We do not consider transfers made as part of a dollar cost averagingprogram when we count the twenty free transfers. Transfers made as part of a rebalancing, market timing or third party investmentadvisory service will be subject to the twenty-transfer limit. However, all transfers made on the same day will be treated as one (1)transfer. Renewals or transfers of Account Value from a Fixed Allocation at the end of its Guarantee Period are not subject to theTransfer Fee and are not counted toward the twenty free transfers. We may reduce the number of free transfers allowable eachAnnuity Year (subject to a minimum of eight) without charging a Transfer Fee unless you make use of electronic means to transmityour transfer requests. We may eliminate the Transfer Fee for transfer requests transmitted electronically or through other means thatreduce our processing costs.Annual Maintenance Fee: During the accumulation period we deduct an Annual Maintenance Fee. The Annual Maintenance Fee is$30.00 or 2% of your Account Value invested in the variable investment options, whichever is less. This fee will be deductedannually on the anniversary of the Issue Date of your Annuity or, if you surrender your Annuity during the Annuity Year, the fee isdeducted at the time of surrender. We may increase the Annual Maintenance Fee. However, any increase will only apply to Annuitiesissued after the date of the increase.Tax Charges: Several states and some municipalities charge premium taxes or similar taxes. The amount of tax will vary fromjurisdiction to jurisdiction and is subject to change. The tax charge currently ranges up to 3½%. We generally will deduct the amountof tax payable at the time the tax is imposed, but may also decide to deduct tax charges from each Purchase Payment at the time of awithdrawal or surrender of your Annuity or at the time you elect to begin receiving annuity payments. We may assess a chargeagainst the Sub-accounts and the Fixed Allocations equal to any taxes which may be imposed upon the separate accounts.Contract described herein is no longer available for sale.WHAT CHARGES APPLY SOLELY TO THE VARIABLE INVESTMENT OPTIONS?Insurance Charge: We deduct an Insurance Charge daily against the average daily assets allocated to the Sub-accounts. TheInsurance Charge is the combination of the Mortality & Expense Risk Charge (1.25%) and the Administration Charge (0.15%). Thetotal charge is equal to 1.40% on an annual basis. The Insurance Charge is intended to compensate American Skandia for providingthe insurance benefits under the Annuity, including the Annuity’s basic death benefit that provides guaranteed benefits to your30