XTra Credit FOUR - Prudential Annuities

Systematic Withdrawals can be made from Account Value allocated to the variable investment options or Fixed Allocations.Generally, Systematic Withdrawals from Fixed Allocations are limited to earnings accrued after the program of SystematicWithdrawals begins, or payments of fixed dollar amounts that do not exceed such earnings. Systematic Withdrawals are available on amonthly, quarterly, semi-annual or annual basis. The Surrender Value of your Annuity must be at least $20,000 before we will allowyou to begin a program of Systematic Withdrawals.The minimum amount for each Systematic Withdrawal is $100. If any scheduled Systematic Withdrawal is for less than $100, wemay postpone the withdrawal and add the expected amount to the amount that is to be withdrawn on the next scheduled SystematicWithdrawal.DO YOU OFFER A PROGRAM FOR WITHDRAWALS UNDER SECTION 72(t) OF THE INTERNAL REVENUE CODE?Yes. If your Annuity is used as a funding vehicle for certain retirement plans that receive special tax treatment under Sections 401,403(b) or 408 of the Code, Section 72(t) of the Code may provide an exception to the 10% penalty tax on distributions made prior toage 59½ if you elect to receive distributions as a series of "substantially equal periodic payments". Distributions received under thisprovision in any Annuity Year that exceed the maximum amount available as a free withdrawal will be subject to a CDSC. We mayapply a Market Value Adjustment to any Fixed Allocations. To request a program that complies with Section 72(t), you must provideus with certain required information in writing on a form acceptable to us. We may require advance notice to allow us to calculate theamount of 72(t) withdrawals. The Surrender Value of your Annuity must be at least $20,000 before we will allow you to begin aprogram for withdrawals under Section 72(t). The minimum amount for any such withdrawal is $100.You may also annuitize your contract and begin receiving payments for the remainder of your life (or life expectancy) as a means ofreceiving income payments before age 59½ that are not subject to the 10% penalty.WHAT ARE MINIMUM DISTRIBUTIONS AND WHEN WOULD I NEED TO MAKE THEM?(See "Tax Considerations" for a further discussion of Minimum Distributions.)Minimum Distributions are a type of Systematic Withdrawal we allow to meet distribution requirements under Sections 401, 403(b) or408 of the Code. Under the Code, you may be required to begin receiving periodic amounts from your Annuity. In such case, we willallow you to make Systematic Withdrawals in amounts that satisfy the minimum distribution rules under the Code. We do not assessa CDSC on Minimum Distributions from your Annuity if you are required by law to take such Minimum Distributions from yourAnnuity at the time it is taken. However, a CDSC may be assessed on that portion of a Systematic Withdrawal that is taken to satisfythe minimum distribution requirements in relation to other savings or investment plans under other qualified retirement plans notmaintained with American Skandia.The amount of the required Minimum Distribution for your particular situation may depend on other annuities, savings or investments.We will only calculate the amount of your required Minimum Distribution based on the value of your Annuity. We require three (3)days advance written notice to calculate and process the amount of your payments. You may elect to have Minimum Distributionspaid out monthly, quarterly, semi-annually or annually. The $100 minimum that applies to Systematic Withdrawals does not apply toMinimum Distributions.You may also annuitize your contract and begin receiving payments for the remainder of your life (or life expectancy) as a means ofreceiving income payments and satisfying the Minimum Distribution requirements under the Code.CAN I SURRENDER MY ANNUITY FOR ITS VALUE?Yes. During the accumulation period you can surrender your Annuity at any time. Upon surrender, you will receive the SurrenderValue. Upon surrender of your Annuity, you will no longer have any rights under the Annuity.For purposes of calculating the CDSC on surrender, the Purchase Payments being withdrawn may be greater than your remainingAccount Value or the amount of your withdrawal request. This is most likely to occur if you have made prior withdrawals under theFree Withdrawal provision or if your Account Value has declined in value due to negative market performance. We may apply aMarket Value Adjustment to any Fixed Allocations.Contract described herein is no longer available for sale.Under certain annuity payment options, you may be allowed to surrender your Annuity for its then current value.To request the forms necessary to surrender your Annuity, call 1-800-766-4530 or visit our Internet Website atwww.americanskandia.com.42