J ENNISON SMALL/MID CAP CORE

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1 J ENNISON SMALL/MID CAP CORE MANAGED BY JENNISON ASSOCIATES MULTIPLE STRATEGIES, ONE MANAGED ACCOUNT The JENNISON SMALL/MID CAP CORE PORTFOLIO invests in both small and mid cap securities and also encompasses growth and value styles with one managed account.

2 JENNISON ASSOCIATES INSTITUTIONAL EXPERIENCE, INDIVIDUAL ATTENTION Jennison Associates has earned a reputation for excellence by fulfilling client needs for more than 35 years. Our approach combines internal fundamental research, a disciplined investment process, and the experience and judgment of our portfolio managers and analysts. Founded in 1969 to provide investment advice for large-capitalization growth equity accounts, we now manage over $64 billion 1 in total assets under management with expertise encompassing growth, value, blend, and global strategies. Our competitive distinctions include widely respected investment professionals, original fundamental research, specialized investment teams, and premier client service. The depth and experience of our investment teams have enabled Jennison to consistently deliver strong risk-adjusted performance to investors. Adhering to well-defined investment philosophies and disciplines ensures that the same high standards are applied across accounts. Our disciplined, research-driven approach at Jennison can help you take advantage of what we believe are today s best small and mid cap opportunities. Jennison Associates is a specialist in actively managed equity portfolios, with expertise in growth, value, and blend styles across capitalizations in the United States and abroad. More than $64 billion in total assets under management 1 Over 35 years of competitive investment performance 2 Sustainable edge driven by experienced investment teams Extraordinary commitment to fundamental research Experience managing portfolios for: Subadvisory clients, including other financial services companies Fortune 500 companies and other large institutions 1 As of December 31, Past performance is not indicative of future results.

3 SUPERIOR PERFORMANCE AND LOWER VOLATILITY Combined small/mid cap stocks as measured by the Russell 2500 Index 3 have outperformed both small and large cap stocks over the last 10 years. AVERAGE ANNUAL RETURNS ENDING DECEMBER 31,2004 A SSET CLASS 1 YEAR (%) 3 YEARS (%) 5 YEARS (%) 10 YEARS (%) Large Cap Small Cap Small/Mid Cap Source: Frank Russell Company, Past performance is not indicative of future results. The performance above represents index returns only, and does not represent actual performance of any specifi c investment. Smaller companies have the potential for greater opportunity because they do not attract the wide recognition and following of large companies. However, smaller companies can be volatile. Mid cap stocks generally offer the growth potential of small caps, with stability approaching that of larger companies. A Small/Mid Cap portfolio expands the traditional small cap universe to include exposure to select mid cap companies, which enables the portfolio manager to hold securities he or she would normally be forced to sell in a small cap-only portfolio. By combining small and mid caps in one portfolio, you may gain growth potential while reducing risk. JENNISON SMALL/MID CAP CORE The goal of the Jennison Small/Mid Cap Core managed account strategy is to outperform the Russell 2500 Index over a market cycle with equal or less risk. The Jennison portfolio holds both small and mid cap securities with one managed account, and also encompasses growth and value styles of investing. We believe that uncovering small and mid cap experience and specialized knowledge, especially because smaller companies are not widely followed by Wall Street analysts. Our team managing the Jennison Small/Mid Cap Core strategy has those abilities. We apply deep experience and a research-driven, company-by-company approach to seek the most attractive opportunities in small and mid cap stocks. securities with the greatest potential for growth takes 3 Russell 2500 measures the performance of the 2,500 smallest companies in the Russell 3000 Index, which represents approximately 17% of the total market capitalization of the Russell 3000 Index. 4 Measured by Russell 1000 Index, an unmanaged index composed of the stocks of the 1,000 largest U.S. companies. 5 Measured by Russell 2000 Index, an unmanaged index composed of the 2,000 smallest companies in the Russell 3000 Index. 6 Measured by Russell 2500 Index, an unmanaged index composed of the 2,500 smallest companies in the Russell 3000 Index. Note: An investment cannot be made directly into an index. Jennison does not compile statistical or other data itself, and relies on third-party vendors to provide such data. Although Jennison utilizes vendors that it believes are reliable, we cannot guarantee the accuracy of such information, as we do not control the methods used to compile such data. Keep in mind there is no assurance the strategy s objective will be achieved.

4 JENNISON ASSOCIATES PORTFOLIO MANAGEMENT FUNDAMENTAL RESEARCH AND DISCIPLINED ANALYSIS HOW WE EVALUATE COMPANIES We define the Small/Mid Cap universe as U.S.-based companies with market capitalizations generally between $500 million and $5 billion. We pare down the list of companies that fit this category to 500 companies on which we focus additional in-depth research. This list is generated based on over 62 years of combined research experience, company meetings, industry conferences, sell-side research, and existing investments. We believe the companies in which we invest generally exhibit the following attributes: Stable, high-quality management team Demonstrated growth in earnings and sales Strong competitive position in their sector or industry Balance sheet flexibility and strength Strong absolute and relative earnings growth prospects Reasonable valuation We then develop three-year earnings and cash flow projections and set a target price for each company on the list. Finally, we rank the stocks on our focus list by their appreciation potential. Jennison s disciplined, research-driven approach can help you BUYING BUSINESSES, NOT JUST STOCKS Our focus is to understand the business models of every company we consider and invest in the most promising opportunities. Behind our process is the philosophy that we re investing in businesses, not stocks. We will even explore unconventional situations, including controversial or complex stories that may be misunderstood or not followed by Wall Street. Our goal is to uncover companies that are attractively priced and have a good chance to achieve superior earnings growth over the next three to five years. While the strategy s core style blends both value and growth, we do not distinguish those styles when building your portfolio. PROCESS DRIVEN BY FUNDAMENTAL RESEARCH Jennison s Small/Mid Cap investment team conducts in-depth fundamental research across a wide variety of industries to identify investment potential. While we rely primarily on our own analysis of companies and industry dynamics to make decisions, we also benefit from the combined expertise and insights of Jennison s highly respected equity research and investment group. An extensive network of Wall Street analysts is also utilized to supplement our internal research. take advantage of today s best small and mid cap opportunities,

5 HOW WE BUILD YOUR SMALL/MID CAP PORTFOLIO Your Small/Mid Cap portfolio consists of 70 to 100 stocks chosen from our focus list of 500 companies. The size of each position reflects a stock s appreciation potential, sector exposure, and other risk factors. For example, we manage sector/industry risk by maintaining a broadly diversified portfolio that spans all the major sectors. Our industry weights are normally limited to 20%. Sector exposures generally stay within WHEN WE LOOK TO SELL We may eliminate or reduce a position for any of the following reasons: A holding exceeds its target price Fundamental change in earnings growth or company dynamics that may affect its appreciation potential Unfavorable changes in stock s fundamentals or industry trends A more attractive stock emerges 5% to 7% of the benchmark weight, a level that may be exceeded on occasion if special opportunities arise. We generally limit exposure in a single stock to 4%, but it is rare for any position to exceed 2%. Our average cash holdings range from 0% to 5%. BOTTOM-UP, RESEARCH-INTENSIVE PROCESS FOCUS LIST OF 500 COMPANIES MANAGEMENT VISITS FUNDAMENTAL FINANCIAL MODELING PORTFOLIO CONSTRUCTION SMALL/MID CAP STRATEGY MODEL PORTFOLIO IDEA GENERATION INTENSIVE FUNDAMENTAL RESEARCH In-depth coverage across wide variety of industries FINANCIAL ANALYSIS Internal earnings estimates Three-year earnings/cash flow projections PORTFOLIO CONSTRUCTION Project/rank each stock s appreciation potential Derive target prices from earnings estimates and qualitative assessment Determine size of position, which reflects balance of appreciation potential, sector exposure, liquidity risk, etc. TYPICALLY OWN COMPANIES

6 WHY JENNISON ASSOCIATES FOR SMALL/MID CAP? As you review your options for a Small/Mid Cap strategy, consider the advantages of choosing Jennison Associates: Bottom-up, research-intensive approach Dedicated small cap team Focus on buying businesses rather than stocks We at Jennison believe that our investment team s long business experience of investing in small companies, as well as knowledge of company and industry developments, enhances our ability to make successful judgments about investment opportunities in the Small/Mid Cap Core arena. Disciplined investing based on attractive earnings growth and reasonable valuation Willingness to explore unconventional opportunities Diversification across growth and value styles For more information, talk to your financial professional or visit our website at A FOCUSED TEAM Portfolio Manager John P. Mullman, CFA, is senior vice president and Small Cap Equity Portfolio manager. He has 17 years of investment experience, and has been managing institutional small cap portfolios since Prior to that, John had very unique experience that gives him and his team a competitive advantage in evaluating small company businesses. He spent a decade managing workouts of distressed investments and also served on the boards of directors of several public and private companies. He has worked closely with the management of several small companies to develop and implement strategic growth plans. John received a B.A. from the College of Holy Cross in 1982 and an M.B.A. in public and private management from Yale University in Supporting John is our dedicated team of five analysts with an average of 10 years experience. Our team possesses a well-rounded skill set, solid sector coverage, and diverse backgrounds. In addition, John can draw from any of Jennison s multiple resources. WHY CHOOSE JENNISON ASSOCIATES? The true measure of an investment manager is the ability to deliver consistently competitive performance. We at Jennison Associates have been meeting that standard since 1969.

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8 JENNISON SMALL/MID CAP CORE MANAGED ACCOUNT For more information, talk to your financial professional or visit us at Professional money management may not be suitable for all investors. Not all financial professionals provide tax or legal advice. Please consult your attorney, accountant, and/or tax professional for advice concerning your particular situation. Past performance is not indicative of future results. There is no assurance that the strategy s objectives will be achieved. Jennison Managed Accounts is a division of Jennison Associates, LLC, a registered investment adviser and Prudential Financial company. Fees for Jennison are available upon request, and may also be found in Part II of Jennison s Form ADV. This document has been prepared by Prudential Investment Management, Inc. JennisonDryden is a registered trademark of The Prudential Insurance Company of America. IFS-A JA252 Ed. 10/01/2005