Nationwide Financial® adds low-cost, income options to America’s marketFLEX® variable annuities

New versions of annuity still offer access to alternative asset classes to help manage risk through diversification

FOR IMMEDIATE RELEASE
November 29, 2007

Contacts:
Jeff Whetzel (614) 249-6354
whetzej@nationwide.com

Jeff Botti (614) 249-6339
bottij@nationwide.com

COLUMBUS, Ohio — Nationwide Financial Services, Inc. (NYSE: NFS), has expanded its line of annuities that provide consumers access to alternative asset classes by adding the low-cost marketFLEX Advisor Annuity designed for fee-based investment professionals, and America’s marketFLEX II, which provides enhanced income and death benefit protection.

“People facing retirement horizons that can last 20 years or more are realizing the importance of not only staying invested, but the need to diversify those investments through alternative asset classes,” said Eric Henderson, senior vice president of the Individual Investments Group at Nationwide Financial. “Our marketFLEX annuities provide diversification through multiple asset allocation techniques that help the average investor manage risk with flexibility and control.”

America’s marketFLEX Advisor is a low-cost variable annuity at 0.45 percent that provides portfolio diversification using alternative asset classes and investment strategies, without surrender charges. It offers a full range of Rydex Global Advisors funds and allows investment professionals to actively manage client accounts to quickly adapt to changing markets.

America’s marketFLEX II is a variable annuity that also uses multiple asset allocation techniques, and now offers an optional guaranteed minimum withdrawal benefit (GMWB) income rider, iFLEXSM.

“America’s marketFLEX II still allows consumers to diversify their portfolio with traditional and alternative underlying investment options, but now also addresses their desire for guaranteed lifetime or immediate income during times of market volatility,” Henderson said.

Optional benefits available for an additional cost with marketFLEX II include:

•iFLEXSM, an optional guaranteed minimum withdrawal benefit (GMWB) rider
•More optional enhanced death benefit rider choices
•Optional 4 percent Extra Value rider

America’s marketFLEX II offers investors two different income options, both available for an additional cost of 0.40 percent, through the iFLEXSM rider:

•The guaranteed lifetime withdrawal option, available after the fifth-year anniversary of the rider and once the contract owner is 59 ½ or older, allows for lifetime withdrawals in the amount of 5 percent of the contract value or lifetime benefit base, whichever is higher.
•The immediate withdrawal benefit, available within the first five years of the rider or if the contract owner is younger than 59 ½, allows for 5 percent withdrawals from the guaranteed value until the benefit base is depleted.

America’s marketFLEX II also includes two enhanced death benefit choices: a return of premium option for an additional 0.20 percent and a one-year step-up option issued through age 75 for an additional 0.30 percent.

Henderson emphasized the additional benefits don’t impact the original intent of marketFLEX: to help investors tackle market risk through portfolio diversification.

“These additional options help address investors’ concerns about income and enhanced protection for beneficiaries without affecting marketFLEX’s ability to help them manage risk through diversification,” Henderson said.

The Dynamic Advantage ProgramSM (DAP) rider, an actively managed asset allocation program that provides access to alternative investment strategies, is also available with marketFLEX Advisor and marketFLEX II for an additional 0.35 percent.

The DAP rider offers the following features to long-term investors seeking a more comprehensive approach to managing their variable annuity investments:

•Risk management in strong, weak and flat markets
•Alternative asset classes and strategies typically used by institutional investors
•Risk tolerance questionnaire to help select a model based on investment objective, time horizon and risk tolerance
•Oversight of investment portfolio models by Rydex Advisory Services
•Timely reporting of model changes 48 hours before they are executed

Alternative investment classes are gaining widespread acceptance among investment professionals. According to a survey conducted by Morningstar Inc1., 67 percent of advisors said more than 10 percent of their clients are now using alternative investments, and 65 percent of advisors surveyed expect to see more than double-digit growth in alternative assets under management over the next five years.

Henderson said that marketFLEX II will continue to offer more than 50 Rydex Variable Trust Funds, managed by Rydex Global Advisors, as well as multiple asset allocation techniques, including:

Dynamic – periodically moves assets between large-cap, mid-cap and small-cap securities

Sector Rotation – typically invests 100 percent of assets in equities, with the investment periodically rotated between sectors and sub sectors

Long/short Strategies – involves strategic rotation among various types of investments, including long positions, short positions or money markets, and are rotated among three strategies depending on market conditions

Long-only Strategies – invests in funds that offer a long position only, among with money market funds that can be more stable investments in a stable market

Composite Strategies – uses a combination of all available strategies that varies based on market conditions

marketFLEX Advisor and marketFLEX II also provide investment professionals with an array of technology-based support tools to enhance their client service capabilities, including:

•A group trading feature that allows for block fund exchanges of multiple contracts, or exchanging from fund to fund, in one transaction
•Living benefits illustrations that creates an individualized illustration to allow the client to see the product in context
•Quick Step, allowing the investment professional to perform end-result transfers on tactical asset allocation funds without moving the assets from traditional variable annuity funds
•A DAP notification process that informs clients via an online message system within 48 hours of any models changes

“We’re committed to providing investment professionals with simpler solutions, including the use of technology as a business en abler to enhance their client-service capabilities,” Henderson said.

Investors should keep in mind that diversification and asset allocation as part of an overall investment strategy do not guarantee a profit or protect against a loss in a declining market.

About Nationwide Financial®
Nationwide Financial Services, Inc. (NYSE: NFS), a publicly traded company based in Columbus, Ohio, provides a variety of financial services that help consumers invest and protect their long-term assets, and offers retirement plans and services through both public- and private-sector employers.

It’s part of the Nationwide group of companies, which offers diversified insurance and financial services. The group is led by Nationwide Mutual Insurance Company, which is ranked No. 104 on the Fortune 500 based on 2006 revenue.2 For more information, visit www.nationwide.com.
Investments Retirement

An investment based upon any of the asset allocation models should only be made after consulting with a financial professional and with an understanding of the risks associated with any investment in securities, including, but not limited to, market risk, currency risk, political and credit risks, the risk of economic recession and the risk that issuers of securities or general stock market conditions may worsen over time. As with any investment, investment returns and principal value will fluctuate, so that when redeemed, an investment may be worth more or less than its original cost.

Model portfolios and investments used in model portfolios are not guaranteed to achieve their objectives or investment strategies. Nationwide® neither endorses nor guarantees any independent third party, investment model or strategy used by the contract owner. It is the responsibility of the contract owner and his/her investment professional to determine suitability.

Diversification and asset allocation as part of an overall investment strategy do not assure a profit or protect against a loss in a declining market. When evaluating the purchase of an annuity, investors should be aware that variable annuities are long-term investment vehicles designed for retirement purposes and will fluctuate in value. Annuities have limitations and investing involves market risk, including possible loss of principal. The guarantees and protections referenced throughout this release are subject to the claims-paying ability of Nationwide Life Insurance Company.

Variable products are sold by prospectus. Both the product prospectus and underlying fund prospectuses can be obtained by writing to Nationwide Life Insurance Company, P.O. Box 182021, Columbus, Ohio 43218-2021. Clients should carefully consider the fund's investment objectives, risks, charges and expenses before investing.

The Dynamic Advantage ProgramSM (“DAP”) is an asset allocation service offered by Rydex Advisory Services, LLC, an SEC-registered investment advisor which serves as an investment advisor solely for the purpose of offering model portfolios available through DAP. Rydex Advisory Services, its affiliates and Nationwide are not responsible for determining suitability of DAP for any investor. Investors should ultimately rely on their own judgment or the judgment of their investment professional in making suitability determinations. Rydex Advisory Services is not a subsidiary of or affiliated with Nationwide Mutual Insurance Company.

Nationwide variable annuities are issued by Nationwide Life Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation, member FINRA.
In MI only: Nationwide Investment Svcs. Corporation.
Nationwide, the Nationwide framemark and On Your Side are federally registered service marks of Nationwide Mutual Insurance Company. America’s marketFLEX is a federally registered service mark of Nationwide Life Insurance Company and iFLEX is a service mark of Nationwide Life Insurance Company. The Dynamic Advantage Program is a service mark held by Rydex Investments, an affiliate of Rydex Advisory Services.
© 2007, Nationwide Financial Services, Inc. All rights reserved.