Copyright ©2005 Ibbotson Associates, Inc. Variable Annuity Investing Securities offered through Lincoln Financial Advisors Corp., a broker/dealer, 1300 S. Clinton Street, Fort Wayne, IN , Phone Insurance offered through Lincoln affiliates and other fine companies. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. CRN

This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 5/1/2005 Copyright ©2005 Ibbotson Associates, Inc. Source: Actuarial Tables—Life Expectancy - Treasury Regulations How long can you expect to live in retirement? Life expectancy for men and women Years Age Men Women

This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 5/1/2005 Copyright ©2005 Ibbotson Associates, Inc. Pension includes all defined benefit and defined contribution plans. Estimates are not guaranteed. Other Earned income Pension Social Security Investment income Sources of retirement income 38.4% 20.4% 19.8% 18.9% 2.5%

This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 5/1/2005 Copyright ©2005 Ibbotson Associates, Inc. Returns before and after inflation 1926–2004 Compound annual return StocksBonds Cash 0% 4% 8% 12% 10% 6% 2% Before inflation 10.4% 5.4% 3.7% 7.2% 2.3% 0.7% After inflation Assumes reinvestment of income and no transaction costs or taxes. This index performance does not reflect the different fees and charges associated with variable annuities. If it did, the performance would be lower than cited above.

This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 5/1/2005 Copyright ©2005 Ibbotson Associates, Inc. Returns before and after taxes 1926–2004 Compound annual return 10.4% 5.5% 3.7% 0% 2% 4% 6% 8% 10% 12% Stocks after Taxes BondsBonds after Taxes CashInflationCash after Taxes Before taxes 8.0% 3.7% 2.1% After taxes 3.0% Inflation This index performance does not reflect the different fees and charges associated with variable annuities. If it did, the performance would be lower than cited above.

This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 5/1/2005 Copyright ©2005 Ibbotson Associates, Inc. $100,000 $300,000 $500,000 $600,000 $0 $400,000 $200, % withdrawal rate Annual inflation-adjusted withdrawal as a % of initial portfolio wealth Potential shortfall: The risk of high withdrawal rates 9% withdrawal rate 8% withdrawal rate 7% withdrawal rate 6% withdrawal rate Hypothetical value of $500,000 invested at year-end Portfolio: 50% large company stocks, 50% intermediate-term bonds. Assumes reinvestment of income and no transaction costs or taxes. This index performance does not reflect the different fees and charges associated with variable annuities. If it did, the performance would be lower than cited above.

This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 5/1/2005 Copyright ©2005 Ibbotson Associates, Inc. Why consider a variable annuity?  Building retirement assets  Tax-deferred accumulation  Choice of investment options  Guaranteed death benefit options  Income payments you cannot outlive

This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 5/1/2005 Copyright ©2005 Ibbotson Associates, Inc. $40,000 $60,906 $20,000 $124,550 $150,000 Power of compounding Total amount invested Compounded value at year-end 2004 Investor B 10 $4,000 Year-end 1994–2004 Investor A 10 $2,000 Year-end 1984–2004 Years contributing: Annual amount contributed: $0 $100,000 $50,000 Hypothetical investment in stocks This index performance does not reflect the different fees and charges associated with variable annuities. If it did, the performance would be lower than cited above.

This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 5/1/2005 Copyright ©2005 Ibbotson Associates, Inc. Benefits of deferring taxes End value after taxes Value of taxable account Value of tax-deferred account $0 $50,000 $100,000 $150,000 $200,000 $250, Years to retirement Hypothetical value of $10,000 invested in large company stocks. This hypothetical example is for an investor in the 25% bracket using the 2004 tax code. Assumes an 8% annual total return. Estimates are not guaranteed. The above illustration does not reflect mortality and expense risk charges, sales charges, management fees, contract administrative charges, and distribution charges that are typically associated with investing in a variable annuity. If these charges were taken into account, they would reduce the level of performance.

This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 5/1/2005 Copyright ©2005 Ibbotson Associates, Inc. Annual ranges of return Long-term government bonds Intrmd.-term government bonds Treasury bills Small company stocks Large company stocks Highs and lows: 1926–2004 Asset class returns 54.0% 14.7% 29.1% 0.0% -5.1% -43.3% -100% -50% 0% 50% 100% 150% 142.9% -58.0% 40.4% -9.2% 3.7% 5.4% 10.4% 12.7% Average return Highest annual return Lowest annual return Each bar shows the range of annual total returns for each asset class over the period 1926–2004. This index performance does not reflect the different fees and charges associated with variable annuities. If it did, the performance would be lower than cited above.

This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 5/1/2005 Copyright ©2005 Ibbotson Associates, Inc. Beneficiary protection Year12345 Current value GMDB annual step-up Anniversary mark  Initial investment      Illustration of highest anniversary value step-up

This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 5/1/2005 Copyright ©2005 Ibbotson Associates, Inc. Variable annuity Flexible premiums Payout alternatives Lump sum Term certainLife only Life only with term certain Joint life and survivor Systematic withdrawal Annuitization Variable annuitization Contract type Contribution method Payout alternatives Annuitization options How to receive your annuity distributions

This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 5/1/2005 Copyright ©2005 Ibbotson Associates, Inc. Results may vary over time and each time the simulation is run. IMPORTANT: The projections or other information generated by Ibbotson Associates regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. No transaction costs or taxes are assumed. This index performance does not reflect the different fees and charges associated with variable annuities. If it did, the performance would be lower than cited above. Probabilities of how long a $500,000 portfolio might pay a $50,000 annual need Annual withdrawal/payment (real $) Age 10% chance Simulated portfolio withdrawals (no annuities) $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60, % chance 25% chance

This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 5/1/2005 Copyright ©2005 Ibbotson Associates, Inc. Payment probabilities with life payout option Results may vary over time and each time the simulation is run. IMPORTANT: The projections or other information generated by Ibbotson Associates regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Simulated variable annuity life payments Age Annual withdrawal/payment (real $) $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45, % chance 25% chance 50% chance

This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 5/1/2005 Copyright ©2005 Ibbotson Associates, Inc. Simulated variable annuity term payments Payment probabilities with 15-year payout option Results may vary over time and each time the simulation is run. IMPORTANT: The projections or other information generated by Ibbotson Associates regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Age Annual withdrawal/payment (real $) $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60, % chance 50% chance 25% chance

This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 5/1/2005 Copyright ©2005 Ibbotson Associates, Inc. Additional features of variable annuities  Dollar cost averaging  Asset allocation  Automatic portfolio rebalancing

This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 5/1/2005 Copyright ©2005 Ibbotson Associates, Inc. Hypothetical illustration of a $600 quarterly investment. Dollar cost averaging Number of units Price Average share price DCA price st Quarter2nd Quarter3rd Quarter4th Quarter $0 $10.00 $20.00 $30.00 $40.00 Price/unit $22.50 $21.05 Units

This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 5/1/2005 Copyright ©2005 Ibbotson Associates, Inc. Cash BondsStocks Asset allocation is the process of combining asset classes such as stocks, bonds, and cash in a portfolio in order to meet your goals. What is asset allocation?

This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 5/1/2005 Copyright ©2005 Ibbotson Associates, Inc. Stock allocation Bond allocation Portfolio weightings Target asset mix: 50% stocks/50% bonds 1984–2004 Importance of rebalancing 50% 72% 28% 75% 25% 58% 42% 55% 45% 50% 0% 20% 40% 60% 80% 100% Assumes reinvestment of income and no transaction costs or taxes. Stocks: 50% large and 50% small company stocks. Bonds: intermediate-term government bonds. This index performance does not reflect the different fees and charges associated with variable annuities. If it did, the performance would be lower than cited above.