Nationwide^® VLI

Separate Account-4

December 31, 2005

2005    

Annual Report    

Nationwide Life Insurance Company

Home Office: Columbus, Ohio

VLOB – 0161–12/05

NATIONWIDE VLI SEPARATE ACCOUNT–4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2005

Assets:
Investments at fair value:
AIM VIF – Basic Value Fund – Series I Shares (AIMBValue) 554,957 shares (cost $6,483,863)	$	6,864,813
AIM VIF – Capital Appreciation Fund – Series I Shares (AIMCapAp) 50,099 shares (cost $1,104,781)		1,236,441
AIM VIF – Capital Development Fund – Series I Shares (AIMCapDev) 577,975 shares (cost $8,451,763)		9,299,612
AIM VIF – International Growth Fund – Series I Shares (AIMIntGr) 672,439 shares (cost $14,010,012)		15,580,413
Alliance VPSF – AllianceBernstein Growth & Income Portfolio – Class A (AlVPGrIncA) 696,586 shares (cost $16,099,094)		17,331,068
Alliance VPSF – AllianceBernstein Small/Mid Cap Value Portfolio – Class A (AlVPSmCapVA) 204,259 shares (cost $3,174,032)		3,484,666
American Century VP – Income & Growth Fund – Class I (ACVPIncGr) 3,669,935 shares (cost $22,301,269)		27,561,213
American Century VP – International Fund – Class I (ACVPInt) 5,422,014 shares (cost $34,547,572)		44,623,178
American Century VP – Mid Cap Value Fund – Class I (ACVPMidCpVal) 55,328 shares (cost $655,345)		647,333
American Century VP – Ultra® Fund – Class I (ACVPUltra) 661,466 shares (cost $6,344,920)		6,866,012
American Century VP – Value Fund – Class I (ACVPVal) 9,088,391 shares (cost $66,463,900)		74,524,804
American Century VP – VistaSM Fund – Class I (ACVPVista) 6,544 shares (cost $91,368)		94,816
American Century VP II – Inflation Protection Fund – Class II (ACVPInflaPro) 579,515 shares (cost $6,070,683)		5,945,821
American Century VP III – International Fund – Class III (ACVPInt3) 519,349 shares (cost $3,819,038)		4,274,241
Baron Capital Funds Trust IS – Baron Capital Asset Fund: Insurance Shares (BCFTCpAsset) 472,318 shares (cost $12,750,607)		13,206,006
Calvert VS – Social Equity Portfolio (CVSSoEq) 2,058 shares (cost $34,984)		36,422
Credit Suisse Trust – Global Small Cap Portfolio (CSGPVen) 62,577 shares (cost $584,780)		810,369
Credit Suisse Trust – International Focus Portfolio (CSIntFoc) 158,096 shares (cost $1,282,032)		1,849,722
Credit Suisse Trust – Large Cap Value Portfolio (CSLCapV) 125,858 shares (cost $1,577,487)		1,809,835
Dreyfus IP – Mid Cap Stock Portfolio – Initial Shares (DryMidCapStS) 39,582 shares (cost $698,892)		757,987
Dreyfus IP – Small Cap Stock Index Portfolio – Service Class (DrySmCapIxS) 1,182,586 shares (cost $18,439,176)		19,713,716

(Continued)

2

NATIONWIDE VLI SEPARATE ACCOUNT–4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY, Continued

Dreyfus Investor, Inc. – Dreyfus Stock Index Fund, Inc. – Initial Shares (DryStkIx) 12,036,536 shares (cost $327,499,980)	$	383,002,590
Dreyfus Investor, Inc. – The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro) 585,691 shares (cost $14,023,084)		15,274,830
Dreyfus VIF – Appreciation Portfolio – Initial Shares (DryVIFApp) 850,048 shares (cost $27,506,458)		31,545,267
Dreyfus VIF – Developing Leaders Portfolio – Initial Shares (DryVIFDevLd) 20,192 shares (cost $797,237)		887,654
Dreyfus VIF – International Value Portfolio – Initial Shares (DryVIFIntVal) 1,725,660 shares (cost $26,409,493)		30,181,802
Federated IS – American Leaders Fund II – Primary Shares (FedAmLead) 14,729 shares (cost $285,849)		314,898
Federated IS – Capital Appreciation Fund II – Primary Shares (FedCapAp) 58,752 shares (cost $332,215)		345,464
Federated IS – Quality Bond Fund II – Primary Shares (FedQualBd) 8,381,193 shares (cost $96,261,923)		94,707,486
Fidelity® VIP – Equity-Income Portfolio: Service Class (FidVIPEIS) 3,781,522 shares (cost $79,634,447)		96,012,851
Fidelity® VIP – Growth Portfolio: Service Class (FidVIPGrS) 2,969,387 shares (cost $86,543,422)		99,652,613
Fidelity® VIP – High Income Portfolio: Service Class (FidVIPHIS) 3,851,069 shares (cost $25,554,922)		23,645,563
Fidelity® VIP – Overseas Portfolio: Service Class (FidVIPOvS) 2,310,583 shares (cost $36,998,049)		47,413,154
Fidelity® VIP – Overseas Portfolio: Service Class R (FidVIPOvSR) 353,149 shares (cost $6,280,456)		7,239,564
Fidelity® VIP II – Contrafund® Portfolio: Service Class (FidVIPConS) 5,365,034 shares (cost $120,730,702)		165,940,508
Fidelity® VIP II – Investment Grade Bond Portfolio: Service Class (FidVIPIGBdS) 585,886 shares (cost $7,472,074)		7,429,039
Fidelity® VIP III – Growth Opportunities Portfolio: Service Class (FidVIPGrOpS) 906,217 shares (cost $12,726,998)		15,704,746
Fidelity® VIP III – Mid Cap Portfolio: Service Class (FidVIPMCapS) 612,949 shares (cost $17,939,926)		21,422,582
Fidelity® VIP III – Value Strategies Portfolio: Service Class (FidVIPVaIS) 516,081 shares (cost $6,807,139)		7,209,651
Fidelity® VIP IV – Natural Resources Portfolio: Service Class 2 (FidVIPCon2) 174,219 shares (cost $3,236,677)		3,290,997
Fidelity® VIP FF – Freedom Fund 2010 Portfolio: Service Class (FidFF2010) 15,290 shares (cost $160,066)		164,676
Fidelity® VIP FF – Freedom Fund 2020 Portfolio: Service Class (FidFF2020) 52,929 shares (cost $567,189)		585,923
Fidelity® VIP FF – Freedom Fund 2030 Portfolio: Service Class (FidFF2030) 23,552 shares (cost $256,802)		265,430
Franklin Templeton VIP – Franklin Rising Dividends Securities Fund – Class I (FrVIPRisDiv) 658,779 shares (cost $11,223,093)		11,930,491
Franklin Templeton VIP – Franklin Small Cap Value Securities Fund – Class I (FTVIPSmCpVal) 422,994 shares (cost $6,495,945)		7,199,357
Franklin Templeton VIP – Templeton Foreign Securities Fund – Class I (FrVIPForSec) 251,562 shares (cost $3,432,952)		3,984,750

(Continued)

3

NATIONWIDE VLI SEPARATE ACCOUNT–4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY, Continued

Franklin Templeton VIP II – Franklin Small Cap Value Securities Fund – Class 2 (FrVIPSmCpValS) 142,396 shares (cost $2,315,944)	$	2,390,833
Franklin Templeton VIP II – Templeton Foreign Securities Fund – Class 2 (FrVIPForSec2) 852,091 shares (cost $12,017,259)		13,309,666
Franklin Templeton VIP III – Franklin Global Income Securities Fund – Class 3 (FrVIPGISec3) 37,154 shares (cost $522,604)		526,839
Franklin Templeton VIP III – Templeton Developing Markets Securities Fund – Class 3 (TmDevMktS3) 187,116 shares (cost $1,853,875)		2,039,561
Franklin Templeton VIP III – Templeton Foreign Securities Fund – Class 3 (FrVIPForSec3) 172,210 shares (cost $2,520,768)		2,686,474
Gartmore GVIT – Dreyfus International Value Fund – Class I (GVITDryIntVal) 199,021 shares (cost $3,054,269)		3,305,745
Gartmore GVIT – Dreyfus Mid Cap Index Fund – Class I (GVITDMidCapI) 4,427,382 shares (cost $63,388,702)		76,859,355
Gartmore GVIT – Emerging Markets Fund: Class I (GVITEmMrkts) 1,320,181 shares (cost $14,581,594)		17,267,968
Gartmore GVIT – Federated High Income Bond Fund: Class I (GVITFHiInc) 2,985,754 shares (cost $24,096,849)		23,199,310
Gartmore GVIT – Global Financial Services Fund: Class I (GVITGlFin1) 262,806 shares (cost $3,310,802)		3,327,122
Gartmore GVIT – Global Health Sciences Fund: Class I (GVITGlHlth) 410,693 shares (cost $4,336,222)		4,246,569
Gartmore GVIT – Global Technology and Communications Fund: Class I (GVITGlTech) 1,339,779 shares (cost $4,817,036)		5,158,149
Gartmore GVIT – Global Utilities Fund: Class I (GVITGlUtl1) 224,793 shares (cost $2,534,379)		2,279,406
Gartmore GVIT – Government Bond Fund: Class I (GVITGvtBd) 11,582,678 shares (cost $139,278,031)		133,664,102
Gartmore GVIT – Growth Fund – Class I (GVITGrowth) 1,453,104 shares (cost $13,454,587)		16,638,043
Gartmore GVIT – International Growth Fund: Class I (GVITIntGro) 386,945 shares (cost $3,030,738)		3,563,768
Gartmore GVIT – J.P. Morgan Balanced Fund – Class I (GVITJPBal) 1,936,018 shares (cost $17,265,314)		19,418,262
Gartmore GVIT – Mid Cap Growth Fund: Class I (GVITSMdCpGr) 600,776 shares (cost $14,398,462)		16,311,081
Gartmore GVIT – Money Market Fund – Class I (GVITMyMkt) 119,439,031 shares (cost $119,439,031)		119,439,031
Gartmore GVIT – Nationwide® Fund: Class I (GVITNWFund) 39,741,555 shares (cost $406,236,165)		470,937,423
Gartmore GVIT – Nationwide® Leaders Fund: Class I (GVITLead) 67,038 shares (cost $918,582)		864,122
Gartmore GVIT – Small Cap Growth Fund: Class I (GVITSmCapGr) 1,635,572 shares (cost $22,350,427)		26,005,599
Gartmore GVIT – Small Cap Value Fund: Class I (GVITSmCapVal) 7,479,906 shares (cost $76,700,528)		86,243,311
Gartmore GVIT – Small Company Fund: Class I (GVITSmComp) 4,737,899 shares (cost $96,535,221)		107,929,332
Gartmore GVIT – U.S. Growth Leaders Fund: Class I (GVITUSGro) 628,387 shares (cost $6,955,045)		6,780,299

(Continued)

4

NATIONWIDE VLI SEPARATE ACCOUNT–4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY, Continued

Gartmore GVIT – Van Kampen Multi Sector Bond Fund – Class I (GVITVKMultiSec) 2,001,185 shares (cost $19,767,450)	$	19,551,582
Gartmore GVIT – Van Kampen Value Fund – Class I (GVITCVal) 968,785 shares (cost $10,157,930)		11,170,089
Gartmore GVIT – Worldwide Leaders Fund: Class I (GVITWLead) 386,185 shares (cost $4,147,296)		4,919,996
Gartmore GVIT III – Dreyfus International Value Fund – Class III (GVITDryIntVal3) 278,237 shares (cost $4,277,919)		4,607,601
Gartmore GVIT III – Emerging Markets Fund: Class III (GVITEmMrkts3) 471,601 shares (cost $5,911,433)		6,168,545
Gartmore GVIT III – Federated High Income Bond Fund: Class III (GVITFHiInc3) 583,238 shares (cost $4,619,906)		4,525,929
Gartmore GVIT III – Global Health Sciences Fund: Class III (GVITGlHlth3) 133,005 shares (cost $1,473,756)		1,377,928
Gartmore GVIT III – Global Technology and Communications Fund: Class III (GVITGlTech3) 282,961 shares (cost $1,070,055)		1,097,887
Gartmore GVIT V – Money Market Fund: Class V (GVITMyMkt5) 196,203,992 shares (cost $196,203,992)		196,203,992
Gartmore GVIT ID II – Aggressive Fund – Class II (GVITIDAgg) 1,542,139 shares (cost $16,900,320)		18,459,399
Gartmore GVIT ID II – Conservative Fund – Class II (GVITIDCon) 938,320 shares (cost $9,766,827)		9,636,547
Gartmore GVIT ID II – Moderate Fund – Class II (GVITIDMod) 4,088,644 shares (cost $43,480,541)		46,610,537
Gartmore GVIT ID II – Moderately Aggressive Fund – Class II (GVITIDModAgg) 4,423,325 shares (cost $47,980,282)		52,372,171
Gartmore GVIT ID II – Moderately Conservative Fund – Class II (GVITIDModCon) 1,898,303 shares (cost $20,107,233)		20,710,491
Goldman Sachs VIT – Mid Cap Value Fund (GSVITMidCap) 3,524,874 shares (cost $54,480,036)		54,741,289
Janus AS – Balanced Portfolio – Service Shares (JanBal) 312,202 shares (cost $7,674,943)		8,310,828
Janus AS – Forty Portfolio – Service Shares (JanCapAp) 1,562,909 shares (cost $32,138,830)		42,901,864
Janus AS – Global Technology Portfolio – Service Shares (JanGlTech) 3,566,733 shares (cost $10,851,906)		14,124,262
Janus AS – International Growth Portfolio – Service Shares (JanIntGro) 1,232,709 shares (cost $27,705,779)		43,354,381
Janus AS – Risk-Managed Large Cap Core Portfolio – Service Shares (JanRMgLgCap) 40,930 shares (cost $554,347)		509,992
JPMorgan IT – Mid Cap Growth Portfolio (OGMidCapGr) 173,375 shares (cost $3,096,261)		3,403,342
JPMorgan IT – Mid Cap Value Portfolio (OGMidCapV) 55,209 shares (cost $833,267)		877,826
Lord Abbett Series Mid Cap Value Fund – VC (LASMdCpVaVC) 11,119 shares (cost $238,736)		234,502
MFS® VITSM – MFS Investors Growth Stock Series – Initial Class (MFSVITInvGrwI) 389,444 shares (cost $3,537,593)		3,855,499
MFS® VITSM – MFS Value Series – Initial Class (MFSVITValIn) 143,398 shares (cost $1,662,602)		1,795,342

(Continued)

5

NATIONWIDE VLI SEPARATE ACCOUNT–4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY, Continued

Merrill Lynch – FAM VSF II – Mercury International Index Portfolio – Class II (FAMIntIndx) 975 shares (cost $10,655)	$	11,040
Mercury II – Large Cap Core VIF – Class II (MLVIFLCCore2) 63,848 shares (cost $2,020,555)		2,023,344
Neuberger Berman AMT – International Portfolio – Class S (NBAMTInt) 54,269 shares (cost $600,868)		633,861
Neuberger Berman AMT – Regency Portfolio – Class S (NBAMTReg) 16,264 shares (cost $261,897)		269,327
Neuberger Berman AMT – Guardian Portfolio – I Class Shares (NBAMTGuard) 834,792 shares (cost $10,762,425)		14,608,854
Neuberger Berman AMT – Limited Maturity Bond Portfolio – I Class Shares (NBAMTLMat) 611,829 shares (cost $7,892,176)		7,733,516
Neuberger Berman AMT – Mid Cap Growth Portfolio – I Class Shares (NBAMTMCGr) 1,880,484 shares (cost $26,722,172)		38,136,206
Neuberger Berman AMT – Partners Portfolio® – I Class Shares (NBAMTPart) 1,095,819 shares (cost $18,983,408)		23,461,484
Neuberger Berman AMT – Socially Responsive Portfolio® – I Class Shares (NBAMTSocRes) 104,768 shares (cost $1,432,519)		1,562,084
Neuberger Berman AMT – Fasciano Portfolio – S Class Shares (NBAMTFasc) 118,798 shares (cost $1,599,507)		1,682,183
Oppenheimer Funds – Aggressive Growth Fund/VA – Initial Class (OppAggGro) 1,125,126 shares (cost $42,539,763)		55,569,950
Oppenheimer Funds – Capital Appreciation Fund/VA – Initial Class (OppCapAp) 3,393,226 shares (cost $109,440,021)		130,707,050
Oppenheimer Funds – Global Securities Fund/VA – Initial Class (OppGlSec) 2,004,846 shares (cost $49,983,866)		66,921,763
Oppenheimer Funds – High Income Fund/VA – Initial Class (OppHighInc) 449,744 shares (cost $3,727,192)		3,795,836
Oppenheimer Funds – Main Street Fund®/VA – Initial Class (OppMSFund) 1,849,392 shares (cost $33,068,393)		40,298,258
Oppenheimer Funds – Main Street Small Cap Fund®/VA – Initial Class (OppMSSmCap) 155,083 shares (cost $2,287,706)		2,664,325
Oppenheimer Funds III – Global Securities Fund/VA – Class 3 (OppGlSec3) 259,930 shares (cost $7,956,420)		8,720,653
PIMCO VIT – All Asset Portfolio – Administrative Shares (PVITAllAsset) 348,306 shares (cost $4,065,218)		4,113,494
PIMCO VIT – Low Duration Portfolio – Administrative Shares (PIMLowDur) 3,901,403 shares (cost $39,945,069)		39,365,154
PIMCO VIT – Real Return Portfolio – Administrative Shares (PIMRealRet) 2,505,340 shares (cost $32,346,793)		31,792,765
PIMCO VIT – Total Return Portfolio – Administrative Shares (PIMTotRet) 8,759,348 shares (cost $91,552,415)		89,695,723
Pioneer VCT – Pioneer High Yield VCT Portfolio – Class I Shares (PVCTHiYield) 1,021,807 shares (cost $11,536,658)		11,117,263
Putnam VT IB – Growth & Income Fund – IB Shares (PVTGroInc) 43,640 shares (cost $1,036,403)		1,149,922
Putnam VT IB – International Equity Fund – IB Shares (PVTIntEq) 141,888 shares (cost $2,008,286)		2,307,105
Putnam VT IB – Voyager II Fund – IB Shares (PVTVoyII) 12,584 shares (cost $328,743)		359,275

(Continued)

6

NATIONWIDE VLI SEPARATE ACCOUNT–4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY, Continued

Royce Capital Fund – Royce Micro-Cap Portfolio (RCFMicroCap) 3,094,475 shares (cost $35,527,673)	$	38,897,554
T. Rowe Price – New America Growth Portfolio (TRowNewAmG) 707,764 shares (cost $13,735,555)		14,381,757
T. Rowe Price II – Blue Chip Growth Portfolio – II (TRPBluChpGrII) 39,190 shares (cost $364,642)		373,876
T. Rowe Price II – Equity Income Portfolio – II (TRowEqInc2) 3,175,637 shares (cost $68,139,439)		69,101,863
T. Rowe Price II – Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio – Class II (TRLimTrmBnd2) 41,204 shares (cost $202,681)		201,489
T. Rowe Price II – Mid Cap Growth Fund – II (TRowMidCap2) 1,110,050 shares (cost $24,934,683)		28,106,472
Van Eck WIT – Worldwide Emerging Markets Fund – Initial Class (VEWrldEMkt) 691,258 shares (cost $10,197,906)		13,762,947
Van Eck WIT – Worldwide Hard Assets Fund – Initial Class (VEWrldHAs) 608,064 shares (cost $12,121,994)		16,867,692
Van Kampen UIF – Core Plus Fixed Income Portfolio – Class I (VKoreFI) 121,643 shares (cost $1,404,005)		1,402,542
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I (VKEmMkt) 1,470,368 shares (cost $12,613,588)		13,292,130
Van Kampen UIF – Mid Cap Growth Portfolio – Class I (VKMidCapG) 375,030 shares (cost $3,901,396)		4,567,861
Van Kampen UIF – U.S. Real Estate Portfolio – Class I (VKUSRealEst) 3,051,366 shares (cost $50,972,216)		70,425,537
Wells Fargo VTFSM – Wells Fargo Advantage Opportunity Fund VT (StOpp2) 1,241,120 shares (cost $23,285,770)		30,059,924
Total Investments		3,947,925,644
Accounts Receivable		36,415
Total Assets		3,947,962,059
Accounts Payable		63,055
Contract Owners Equity (note 7)	$	3,947,899,004

See accompanying notes to financial statements.

7

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS

Year Ended December 31, 2005

Investment activity:	Total			AIMBValue		AIMCapAp		AIMCapDev		AIMIntGr		AlVPGrIncA		AlVPSmCapVA		ACVPIncGr
Reinvested dividends	$	58,387,030		5,974		760		–		91,558		225,114		23,434		532,588
Mortality and expense risk charges (note 3)		(5,204,096	)	(8,920	)	(518	)	(16,945	)	(24,078	)	(35,506	)	(1,631	)	(15,093	)
Net investment income (loss)		53,182,934		(2,946	)	242		(16,945	)	67,480		189,608		21,803		517,495
Proceeds from mutual fund shares sold		1,366,890,196		7,087,992		220,335		6,096,352		827,983		6,441,259		704,078		7,026,844
Cost of mutual fund shares sold		(1,250,438,343	)	(6,550,281	)	(189,068	)	(5,568,031	)	(708,361	)	(5,269,474	)	(636,712	)	(4,967,815	)
Realized gain (loss) on investments		116,451,853		537,711		31,267		528,321		119,622		1,171,785		67,366		2,059,029
Change in unrealized gain (loss) on investments		34,976,679		(107,374	)	67,254		442,622		1,425,222		(642,982	)	(1,411	)	(1,421,747	)
Net gain (loss) on investments		151,428,532		430,337		98,521		970,943		1,544,844		528,803		65,955		637,282
Reinvested capital gains		61,380,612		76,238		–		–		–		–		141,546		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	265,992,078		503,629		98,763		953,998		1,612,324		718,411		229,304		1,154,777
Investment activity:	ACVPInt			ACVPMidCpVal		ACVPUltra		ACVPVal		ACVPVista		ACVPInflaPro		ACVPInt3		BCFTCpAsset
Reinvested dividends	$	586,612		5,238		–		578,446		–		280,594		–		–
Mortality and expense risk charges (note 3)		(58,144	)	(13	)	(11,798	)	(60,659	)	(33	)	(1,198	)	(585	)	(34,154	)
Net investment income (loss)		528,468		5,225		(11,798	)	517,787		(33	)	279,396		(585	)	(34,154	)
Proceeds from mutual fund shares sold		20,542,724		108,533		1,779,678		10,281,963		27,329		2,957,574		97,951		9,376,630
Cost of mutual fund shares sold		(15,387,273	)	(108,528	)	(1,584,385	)	(7,584,571	)	(24,851	)	(2,962,150	)	(91,604	)	(7,711,733	)
Realized gain (loss) on investments		5,155,451		5		195,293		2,697,392		2,478		(4,576	)	6,347		1,664,897
Change in unrealized gain (loss) on investments		(425,258	)	(8,011	)	(34,075	)	(6,420,369	)	3,449		(187,807	)	455,203		(1,287,251	)
Net gain (loss) on investments		4,730,193		(8,006	)	161,218		(3,722,977	)	5,927		(192,383	)	461,550		377,646
Reinvested capital gains		–		14,612		–		6,692,806		–		3,210		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	5,258,661		11,831		149,420		3,487,616		5,894		90,223		460,965		343,492

(Continued)

8

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2005

Investment activity:	CVSSoEq			CSGPVen		CSIntFoc		CSLCapV		DryMidCapStS		DrySmCapIxS		DryStkIx		DrySRGro
Reinvested dividends	$	20		–		15,008		13,330		214		–		5,995,920		–
Mortality and expense risk charges (note 3)		(52	)	(346	)	(224	)	(207	)	(2,384	)	(25,790	)	(515,197	)	(2,904	)
Net investment income (loss)		(32	)	(346	)	14,784		13,123		(2,170	)	(25,790	)	5,480,723		(2,904	)
Proceeds from mutual fund shares sold		96,440		388,233		399,765		813,514		2,634,515		13,195,170		62,858,790		2,774,216
Cost of mutual fund shares sold		(91,233	)	(267,902	)	(318,965	)	(734,396	)	(2,557,190	)	(11,736,892	)	(60,629,540	)	(3,219,960	)
Realized gain (loss) on investments		5,207		120,331		80,800		79,118		77,325		1,458,278		2,229,250		(445,744	)
Change in unrealized gain (loss) on investments		(6,255	)	(5,473	)	179,361		52,097		(46,328	)	(665,187	)	9,063,983		966,426
Net gain (loss) on investments		(1,048	)	114,858		260,161		131,215		30,997		793,091		11,293,233		520,682
Reinvested capital gains		–		–		–		–		2,846		37,946		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	(1,080	)	114,512		274,945		144,338		31,673		805,247		16,773,956		517,778
Investment activity:	DryVIFApp			DryVIFDevLd		DryVIFIntVal		FedAmLead		FedCapAp		FedQualBd		FidVIPEIS		FidVIPGrS
Reinvested dividends	$	5,250		–		–		4,708		3,826		3,341,664		1,487,636		423,678
Mortality and expense risk charges (note 3)		(36,731	)	(344	)	(72,554	)	(131	)	(130	)	(155,811	)	(117,797	)	(107,923	)
Net investment income (loss)		(31,481	)	(344	)	(72,554	)	4,577		3,696		3,185,853		1,369,839		315,755
Proceeds from mutual fund shares sold		8,257,276		215,793		18,835,179		85,216		93,969		22,677,236		22,580,234		30,389,425
Cost of mutual fund shares sold		(7,637,666	)	(198,807	)	(16,077,522	)	(69,248	)	(84,126	)	(21,418,667	)	(20,461,797	)	(33,055,883	)
Realized gain (loss) on investments		619,610		16,986		2,757,657		15,968		9,843		1,258,569		2,118,437		(2,666,458	)
Change in unrealized gain (loss) on investments		723,885		28,507		(437,900	)	(6,278	)	(6,170	)	(3,953,905	)	(1,838,486	)	7,486,842
Net gain (loss) on investments		1,343,495		45,493		2,319,757		9,690		3,673		(2,695,336	)	279,951		4,820,384
Reinvested capital gains		–		–		474,426		–		–		573,294		3,438,952		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	1,312,014		45,149		2,721,629		14,267		7,369		1,063,811		5,088,742		5,136,139

(Continued)

9

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2005

Investment activity:	FidVIPHIS			FidVIPOvS		FidVIPOvSR		FidVIPConS		FidVIPIGBdS		FidVIPGrOpS		FidVIPMCapS		FidVIPVaIS
Reinvested dividends	$	3,640,966		244,916		–		261,894		154,156		127,396		–		–
Mortality and expense risk charges (note 3)		(18,416	)	(64,330	)	(711	)	(169,353	)	(3,614	)	(7,976	)	(8,369	)	(3,084	)
Net investment income (loss)		3,622,550		180,586		(711	)	92,541		150,542		119,420		(8,369	)	(3,084	)
Proceeds from mutual fund shares sold		16,389,530		12,443,522		186,522		15,678,004		825,957		3,271,301		1,086,403		4,602,887
Cost of mutual fund shares sold		(14,526,794	)	(9,581,732	)	(158,805	)	(11,541,488	)	(848,991	)	(3,184,445	)	(836,702	)	(4,487,199	)
Realized gain (loss) on investments		1,862,736		2,861,790		27,717		4,136,516		(23,034	)	86,856		249,701		115,688
Change in unrealized gain (loss) on investments		(4,923,157	)	4,281,500		959,109		18,430,598		(108,323	)	1,056,050		2,420,458		(133,755	)
Net gain (loss) on investments		(3,060,421	)	7,143,290		986,826		22,567,114		(131,357	)	1,142,906		2,670,159		(18,067	)
Reinvested capital gains		–		220,424		–		23,808		94,116		–		151,660		181,130
Net increase (decrease) in contract owners’ equity resulting from operations	$	562,129		7,544,300		986,115		22,683,463		113,301		1,262,326		2,813,450		159,979
Investment activity:	FidVIPCon2			FidFF2010		FidFF2020		FidFF2030		FrVIPRisDiv		FTVIPSmCpVal		FrVIPForSec		FrVIPSmCpValS
Reinvested dividends	$	11,094		716		3,124		1,406		111,390		52,340		67,904		–
Mortality and expense risk charges (note 3)		(58	)	(1	)	(12	)	(12	)	(5,020	)	(1,715	)	(2,399	)	(3,748	)
Net investment income (loss)		11,036		715		3,112		1,394		106,370		50,625		65,505		(3,748	)
Proceeds from mutual fund shares sold		761,978		94,658		3,922		65,757		3,117,261		1,345,311		2,118,146		860,627
Cost of mutual fund shares sold		(654,531	)	(93,278	)	(3,716	)	(64,008	)	(2,854,823	)	(1,032,978	)	(1,786,970	)	(819,725	)
Realized gain (loss) on investments		107,447		1,380		206		1,749		262,438		312,333		331,176		40,902
Change in unrealized gain (loss) on investments		54,320		4,610		18,735		8,629		56,160		164,953		5,302		74,889
Net gain (loss) on investments		161,767		5,990		18,941		10,378		318,598		477,286		336,478		115,791
Reinvested capital gains		145,810		–		–		–		66,316		36,068		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	318,613		6,705		22,053		11,772		491,284		563,979		401,983		112,043

(Continued)

10

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2005

Investment activity:	FrVIPForSec2			FrVIPGISec3		TmDevMktS3		FrVIPForSec3		GVITDryIntVal		GVITDMidCapI		GVITEmMrkts		GVITFHiInc
Reinvested dividends	$	120,398		5,934		510		6,906		56,400		728,594		81,932		2,144,482
Mortality and expense risk charges (note 3)		(33,376	)	(33	)	(53	)	(509	)	(1,399	)	(104,864	)	(19,292	)	(35,329	)
Net investment income (loss)		87,022		5,901		457		6,397		55,001		623,730		62,640		2,109,153
Proceeds from mutual fund shares sold		8,239,858		92,015		81,303		1,039,997		3,904,990		14,373,075		4,712,190		25,331,560
Cost of mutual fund shares sold		(6,705,095	)	(98,259	)	(73,334	)	(984,428	)	(3,522,942	)	(11,861,685	)	(4,450,001	)	(25,009,001	)
Realized gain (loss) on investments		1,534,763		(6,244	)	7,969		55,569		382,048		2,511,390		262,189		322,559
Change in unrealized gain (loss) on investments		(600,489	)	4,235		185,687		165,707		(201,407	)	545,209		2,255,101		(2,006,710	)
Net gain (loss) on investments		934,274		(2,009	)	193,656		221,276		180,641		3,056,599		2,517,290		(1,684,151	)
Reinvested capital gains		–		–		–		–		164,802		4,400,544		1,416,338		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	1,021,296		3,892		194,113		227,673		400,444		8,080,873		3,996,268		425,002
Investment activity:	GVITGlFin1			GVITGlHlth		GVITGlTech		GVITGlUtl1		GVITGvtBd		GVITGrowth		GVITIntGro		GVITJPBal
Reinvested dividends	$	47,016		–		–		61,684		4,991,222		12,768		27,060		395,310
Mortality and expense risk charges (note 3)		(2,010	)	(4,508	)	(6,698	)	(1,386	)	(231,785	)	(2,307	)	(2,005	)	(14,307	)
Net investment income (loss)		45,006		(4,508	)	(6,698	)	60,298		4,759,437		10,461		25,055		381,003
Proceeds from mutual fund shares sold		1,348,497		3,870,409		7,117,864		2,403,928		37,019,893		1,285,412		1,773,303		5,027,892
Cost of mutual fund shares sold		(1,260,458	)	(3,665,506	)	(7,643,018	)	(2,150,471	)	(39,261,907	)	(1,326,131	)	(1,504,305	)	(4,043,260	)
Realized gain (loss) on investments		88,039		204,903		(525,154	)	253,457		(2,242,014	)	(40,719	)	268,998		984,632
Change in unrealized gain (loss) on investments		(184,975	)	(259,358	)	56,940		(476,164	)	1,197,817		1,040,630		343,491		(887,239	)
Net gain (loss) on investments		(96,936	)	(54,455	)	(468,214	)	(222,707	)	(1,044,197	)	999,911		612,489		97,393
Reinvested capital gains		289,878		503,492		–		343,590		236,680		–		7,948		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	237,948		444,529		(474,912	)	181,181		3,951,920		1,010,372		645,492		478,396

(Continued)

11

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2005

Investment activity:	GVITSMdCpGr			GVITMyMkt		GVITNWFund		GVITLead		GVITSmCapGr		GVITSmCapVal		GVITSmComp		GVITUSGro
Reinvested dividends	$	–		3,248,080		2,938,050		10,602		–		57,470		–		–
Mortality and expense risk charges (note 3)		(7,156	)	(53,326	)	(244,428	)	(586	)	(26,072	)	(109,171	)	(170,116	)	(3,737	)
Net investment income (loss)		(7,156	)	3,194,754		2,693,622		10,016		(26,072	)	(51,701	)	(170,116	)	(3,737	)
Proceeds from mutual fund shares sold		15,705,744		65,669,864		6,387,103		911,090		10,074,467		19,590,655		19,369,660		2,050,225
Cost of mutual fund shares sold		(11,810,085	)	(65,669,864	)	(5,735,782	)	(832,432	)	(8,419,034	)	(16,579,989	)	(15,632,073	)	(1,952,550	)
Realized gain (loss) on investments		3,895,659		–		651,321		78,658		1,655,433		3,010,666		3,737,587		97,675
Change in unrealized gain (loss) on investments		(3,047,260	)	–		22,877,449		(134,132	)	(103,778	)	(10,694,552	)	(4,647,318	)	(551,367	)
Net gain (loss) on investments		848,399		–		23,528,770		(55,474	)	1,551,655		(7,683,886	)	(909,731	)	(453,692	)
Reinvested capital gains		–		–		–		131,530		–		9,974,530		12,618,912		967,114
Net increase (decrease) in contract owners’ equity resulting from operations	$	841,243		3,194,754		26,222,392		86,072		1,525,583		2,238,943		11,539,065		509,685
Investment activity:	GVITVKMultiSec			GVITCVal		GVITWLead		GVITDryIntVal3		GVITEmMrkts3		GVITFHiInc3		GVITGlHlth3		GVITGlTech3
Reinvested dividends	$	733,440		164,180		50,988		28,286		5,436		183,486		–		–
Mortality and expense risk charges (note 3)		(28,789	)	(7,670	)	(1,358	)	(658	)	(392	)	(324	)	(107	)	(86	)
Net investment income (loss)		704,651		156,510		49,630		27,628		5,044		183,162		(107	)	(86	)
Proceeds from mutual fund shares sold		5,723,890		3,969,475		3,641,874		647,580		940,082		281,994		48,244		210,144
Cost of mutual fund shares sold		(5,668,655	)	(2,664,191	)	(2,455,044	)	(634,586	)	(857,204	)	(280,658	)	(45,967	)	(188,595	)
Realized gain (loss) on investments		55,235		1,305,284		1,186,830		12,994		82,878		1,336		2,277		21,549
Change in unrealized gain (loss) on investments		(490,913	)	(1,324,762	)	(451,565	)	329,682		257,113		(93,976	)	(95,828	)	27,832
Net gain (loss) on investments		(435,678	)	(19,478	)	735,265		342,676		339,991		(92,640	)	(93,551	)	49,381
Reinvested capital gains		105,992		280,896		–		44,172		436,362		–		125,938		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	374,965		417,928		784,895		414,476		781,397		90,522		32,280		49,295

(Continued)

12

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2005

Investment activity:	GVITMyMkt5			GVITIDAgg		GVITIDCon		GVITIDMod		GVITIDModAgg		GVITIDModCon		GSVITMidCap		JanBal
Reinvested dividends	$	9,224,342		301,036		245,220		939,974		978,812		438,788		284,938		173,542
Mortality and expense risk charges (note 3)		(715,636	)	(11,846	)	(10,299	)	(42,446	)	(39,823	)	(22,243	)	(130,590	)	(20,888	)
Net investment income (loss)		8,508,706		289,190		234,921		897,528		938,989		416,545		154,348		152,654
Proceeds from mutual fund shares sold		405,995,218		2,376,152		9,176,833		3,466,062		4,494,636		2,659,996		24,170,547		3,706,391
Cost of mutual fund shares sold		(405,995,218	)	(1,760,800	)	(8,957,278	)	(2,721,165	)	(3,240,378	)	(2,306,008	)	(20,345,736	)	(3,246,405	)
Realized gain (loss) on investments		–		615,352		219,555		744,897		1,254,258		353,988		3,824,811		459,986
Change in unrealized gain (loss) on investments		–		12,811		(329,049	)	(103,063	)	122,125		(382,105	)	(2,832,569	)	26,626
Net gain (loss) on investments		–		628,163		(109,494	)	641,834		1,376,383		(28,117	)	992,242		486,612
Reinvested capital gains		–		327,252		199,790		708,206		999,754		319,252		4,779,360		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	8,508,706		1,244,605		325,217		2,247,568		3,315,126		707,680		5,925,950		639,266
Investment activity:	JanCapAp			JanGlTech		JanIntGro		JanRMgLgCap		OGMidCapGr		OGMidCapV		LASMdCpVaVC		MFSVITInvGrwI
Reinvested dividends	$	3,530		–		408,986		5,900		–		5,748		1,002		10,900
Mortality and expense risk charges (note 3)		(38,457	)	(3,541	)	(37,490	)	(137	)	(8,296	)	(2,352	)	(278	)	(915	)
Net investment income (loss)		(34,927	)	(3,541	)	371,496		5,763		(8,296	)	3,396		724		9,985
Proceeds from mutual fund shares sold		10,657,669		3,500,307		14,975,408		138,753		2,371,308		992,352		34,989		663,399
Cost of mutual fund shares sold		(7,644,662	)	(3,977,244	)	(9,611,804	)	(131,757	)	(2,027,364	)	(902,648	)	(34,258	)	(614,705	)
Realized gain (loss) on investments		3,013,007		(476,937	)	5,363,604		6,996		343,944		89,704		731		48,694
Change in unrealized gain (loss) on investments		1,708,676		1,867,653		5,238,898		(49,154	)	(31,068	)	(70,259	)	(4,233	)	121,870
Net gain (loss) on investments		4,721,683		1,390,716		10,602,502		(42,158	)	312,876		19,445		(3,502	)	170,564
Reinvested capital gains		–		–		–		83,508		–		66,486		13,692		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	4,686,756		1,387,175		10,973,998		47,113		304,580		89,327		10,914		180,549

(Continued)

13

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2005

Investment activity:	MFSVITValIn			FAMIntIndx		MLVIFLCCore2		NBAMTInt		NBAMTReg		NBAMTGuard		NBAMTLMat		NBAMTMCGr
Reinvested dividends	$	10,782		142		11,218		690		–		20,904		217,462		–
Mortality and expense risk charges (note 3)		(804	)	(4	)	(2,492	)	(26	)	(162	)	(12,008	)	(2,941	)	(24,851	)
Net investment income (loss)		9,978		138		8,726		664		(162	)	8,896		214,521		(24,851	)
Proceeds from mutual fund shares sold		197,008		578		151,942		55,708		61,315		3,258,960		2,213,996		12,716,664
Cost of mutual fund shares sold		(157,727	)	(549	)	(148,467	)	(53,161	)	(58,614	)	(2,187,287	)	(2,277,987	)	(8,751,640	)
Realized gain (loss) on investments		39,281		29		3,475		2,547		2,701		1,071,673		(63,991	)	3,965,024
Change in unrealized gain (loss) on investments		21,116		385		2,790		32,993		7,430		29,510		(61,052	)	549,775
Net gain (loss) on investments		60,397		414		6,265		35,540		10,131		1,101,183		(125,043	)	4,514,799
Reinvested capital gains		32,118		26		82,926		3,050		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	102,493		578		97,917		39,254		9,969		1,110,079		89,478		4,489,948
Investment activity:	NBAMTPart			NBAMTSocRes		NBAMTFasc		OppAggGro		OppCapAp		OppGlSec		OppHighInc		OppMSFund
Reinvested dividends	$	197,880		–		–		–		1,182,610		610,332		189,564		553,578
Mortality and expense risk charges (note 3)		(16,136	)	(271	)	(3,239	)	(58,472	)	(224,548	)	(99,361	)	(1,521	)	(24,228	)
Net investment income (loss)		181,744		(271	)	(3,239	)	(58,472	)	958,062		510,971		188,043		529,350
Proceeds from mutual fund shares sold		8,484,168		204,038		2,591,995		24,809,350		42,191,264		15,182,889		7,371,168		9,735,981
Cost of mutual fund shares sold		(5,260,529	)	(169,453	)	(2,456,077	)	(16,460,694	)	(41,612,988	)	(9,860,685	)	(7,422,099	)	(8,030,175	)
Realized gain (loss) on investments		3,223,639		34,585		135,918		8,348,656		578,276		5,322,204		(50,931	)	1,705,806
Change in unrealized gain (loss) on investments		(223,832	)	59,578		(93,155	)	(2,182,218	)	4,398,023		2,527,482		(47,298	)	9,374
Net gain (loss) on investments		2,999,807		94,163		42,763		6,166,438		4,976,299		7,849,686		(98,229	)	1,715,180
Reinvested capital gains		4,592		3,326		7,692		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	3,186,143		97,218		47,216		6,107,966		5,934,361		8,360,657		89,814		2,244,530

(Continued)

14

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2005

Investment activity:	OppMSSmCap			OppGlSec3		PVITAllAsset		PIMLowDur		PIMRealRet		PIMTotRet		PVCTHiYield		PVTGroInc
Reinvested dividends	$	–		–		158,924		1,087,736		754,128		2,685,792		524,618		16,088
Mortality and expense risk charges (note 3)		(1,163	)	(1,266	)	(9,510	)	(97,470	)	(72,096	)	(216,630	)	(24,932	)	(594	)
Net investment income (loss)		(1,163	)	(1,266	)	149,414		990,266		682,032		2,469,162		499,686		15,494
Proceeds from mutual fund shares sold		465,251		688,599		145,448		32,405,226		8,187,415		12,100,579		3,152,707		135,120
Cost of mutual fund shares sold		(393,834	)	(623,518	)	(141,371	)	(32,592,161	)	(8,037,391	)	(12,103,492	)	(3,219,041	)	(113,205	)
Realized gain (loss) on investments		71,417		65,081		4,077		(186,935	)	150,024		(2,913	)	(66,334	)	21,915
Change in unrealized gain (loss) on investments		117,558		764,233		50,480		(595,391	)	(739,307	)	(2,205,252	)	(555,063	)	20,998
Net gain (loss) on investments		188,975		829,314		54,557		(782,326	)	(589,283	)	(2,208,165	)	(621,397	)	42,913
Reinvested capital gains		53,070		–		12,230		104,450		345,124		1,411,494		327,788		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	240,882		828,048		216,201		312,390		437,873		1,672,491		206,077		58,407
Investment activity:	PVTIntEq			PVTVoyII		RCFMicroCap		TRowNewAmG		TRPBluChpGrII		TRowEqInc2		TRLimTrmBnd2		TRowMidCap2
Reinvested dividends	$	23,534		2,006		196,526		–		338		828,864		2,024		–
Mortality and expense risk charges (note 3)		(260	)	(255	)	(100,334	)	(22,046	)	(20	)	(163,645	)	–		(69,266	)
Net investment income (loss)		23,274		1,751		96,192		(22,046	)	318		665,219		2,024		(69,266	)
Proceeds from mutual fund shares sold		565,565		221,119		9,879,313		976,846		92,239		15,288,595		2,151		18,781,142
Cost of mutual fund shares sold		(458,611	)	(213,517	)	(9,212,006	)	(964,970	)	(88,314	)	(12,594,063	)	(2,164	)	(15,614,570	)
Realized gain (loss) on investments		106,954		7,602		667,307		11,876		3,925		2,694,532		(13	)	3,166,572
Change in unrealized gain (loss) on investments		97,263		10,546		2,639,776		642,042		9,234		(4,229,484	)	(1,192	)	(1,508,118	)
Net gain (loss) on investments		204,217		18,148		3,307,083		653,918		13,159		(1,534,952	)	(1,205	)	1,658,454
Reinvested capital gains		–		–		593,782		–		–		3,101,640		–		1,546,394
Net increase (decrease) in contract owners’ equity resulting from operations	$	227,491		19,899		3,997,057		631,872		13,477		2,231,907		819		3,135,582

(Continued)

15

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2005

Investment activity:	VEWrldEMkt			VEWrldHAs		VKoreFI		VKEmMkt		VKMidCapG		VKUSRealEst		StOpp2
Reinvested dividends	$	83,568		37,848		35,684		782,610		–		749,754		–
Mortality and expense risk charges (note 3)		(5,934	)	(11,435	)	(1,319	)	(13,686	)	(2,536	)	(83,772	)	(39,171	)
Net investment income (loss)		77,634		26,413		34,365		768,924		(2,536	)	665,982		(39,171	)
Proceeds from mutual fund shares sold		8,253,377		6,012,471		47,245		3,284,639		2,624,755		15,463,405		13,941,686
Cost of mutual fund shares sold		(5,203,627	)	(3,906,634	)	(46,485	)	(3,181,027	)	(2,012,311	)	(9,211,607	)	(8,711,536	)
Realized gain (loss) on investments		3,049,750		2,105,837		760		103,612		612,444		6,251,798		5,230,150
Change in unrealized gain (loss) on investments		(29,014	)	3,024,831		(4,172	)	211,347		(107,928	)	1,277,163		(3,039,693	)
Net gain (loss) on investments		3,020,736		5,130,668		(3,412	)	314,959		504,516		7,528,961		2,190,457
Reinvested capital gains		–		–		7,318		166,324		–		1,656,042		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	3,098,370		5,157,081		38,271		1,250,207		501,980		9,850,985		2,151,286

See accompanying notes to financial statements.

16

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2005 and 2004

	Total					AIMBValue				AIMCapAp				AIMCapDev
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	53,182,934		39,950,645		(2,946	)	(8,019	)	242		(221	)	(16,945	)	(3,040	)
Realized gain (loss) on investments		116,451,853		49,823,079		537,711		189,406		31,267		9,949		528,321		12,548
Change in unrealized gain (loss) on investments		34,976,679		199,826,035		(107,374	)	327,981		67,254		38,984		442,622		386,257
Reinvested capital gains		61,380,612		35,288,570		76,238		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		265,992,078		324,888,329		503,629		509,368		98,763		48,712		953,998		395,765
Equity transactions:
Purchase payments received from contract owners (note 6)		715,520,140		696,489,200		1,360,376		951,110		212,666		132,482		1,247,716		434,256
Transfers between funds		–		–		3,869,968		3,429,618		295,260		342,788		8,121,858		2,019,398
Surrenders (note 6)		(534,517,966	)	(206,719,770	)	(4,766,502	)	(169,779	)	(29,876	)	(12,926	)	(4,134,776	)	(9,041	)
Death benefits (note 4)		(5,693,704	)	(6,236,282	)	(9,522	)	(2,654	)	–		–		(5,288	)	(188	)
Net policy repayments (loans) (note 5)		(20,641,828	)	(11,006,812	)	(79,638	)	(40,254	)	(11,600	)	(21,560	)	(7,148	)	(6,360	)
Deductions for surrender charges (note 2d)		(8,904,284	)	(9,527,283	)	(27,640	)	(8,152	)	(4,456	)	(1,442	)	(5,342	)	(1,592	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(135,001,808	)	(138,037,750	)	(398,236	)	(231,454	)	(81,872	)	(58,520	)	(268,490	)	(103,262	)
Asset charges (note 3):
FPVUL & VEL contracts		(5,334,262	)	(4,687,281	)	(14,696	)	(6,476	)	(3,125	)	(2,020	)	(8,692	)	(3,689	)
MSP contracts		(228,393	)	(207,054	)	(195	)	(480	)	(17	)	(7	)	(132	)	(78	)
SL contracts		(1,248,349	)	(1,063,140	)	(1,327	)	(651	)	(334	)	(68	)	(539	)	(337	)
Adjustments to maintain reserves		61,021		1,109,971		112		369		17		98		92		197
Net equity transactions		4,010,567		320,113,799		(67,300	)	3,921,197		376,663		378,825		4,939,259		2,329,304
Net change in contract owners’ equity		270,002,645		645,002,128		436,329		4,430,565		475,426		427,537		5,893,257		2,725,069
Contract owners’ equity beginning of period		3,677,896,359		3,032,894,231		6,428,741		1,998,176		761,126		333,589		3,406,608		681,539
Contract owners’ equity end of period	$	3,947,899,004		3,677,896,359		6,865,070		6,428,741		1,236,552		761,126		9,299,865		3,406,608
CHANGES IN UNITS:
Beginning units		304,571,400		274,276,875		441,082		152,240		57,596		26,916		222,592		51,345
Units purchased		162,253,438		129,461,075		503,212		386,902		38,251		38,679		693,638		203,870
Units redeemed		(164,286,248	)	(99,166,550	)	(498,922	)	(98,060	)	(9,871	)	(7,999	)	(359,392	)	(32,623	)
Ending units		302,538,590		304,571,400		445,372		441,082		85,976		57,596		556,838		222,592

(Continued)

17

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	AIMIntGr					AlVPGrIncA				AlVPSmCapVA				ACVPIncGr
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	67,480		10,956		189,608		87,104		21,803		1,093		517,495		370,592
Realized gain (loss) on investments		119,622		391		1,171,785		438,122		67,366		42,630		2,059,029		703,803
Change in unrealized gain (loss) on investments		1,425,222		145,180		(642,982	)	906,896		(1,411	)	282,003		(1,421,747	)	2,633,065
Reinvested capital gains		–		–		–		–		141,546		23,850		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		1,612,324		156,527		718,411		1,432,122		229,304		349,576		1,154,777		3,707,460
Equity transactions:
Purchase payments received from contract owners (note 6)		1,596,162		528,884		1,709,656		2,495,128		488,538		547,328		3,346,398		4,417,994
Transfers between funds		8,876,650		2,870,628		2,819,960		3,133,978		35,444		1,848,424		(2,526,656	)	(994,534	)
Surrenders (note 6)		(5,190	)	–		(2,418,228	)	(593,390	)	(61,736	)	(52,180	)	(2,944,928	)	(2,053,219	)
Death benefits (note 4)		–		–		(79,996	)	(1,516	)	–		–		(40,254	)	(37,484	)
Net policy repayments (loans) (note 5)		(1,274	)	81,270		(31,234	)	(15,914	)	(41,662	)	(17,020	)	(214,658	)	(105,752	)
Deductions for surrender charges (note 2d)		–		–		(7,968	)	(8,000	)	(5,048	)	(2,960	)	(108,542	)	(105,664	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(132,822	)	(2,762	)	(419,302	)	(445,540	)	(129,630	)	(81,732	)	(1,457,492	)	(1,717,476	)
Asset charges (note 3):
FPVUL & VEL contracts		–		–		(12,386	)	(9,515	)	(7,401	)	(3,744	)	(76,840	)	(72,566	)
MSP contracts		–		–		(165	)	(126	)	(288	)	(196	)	(5,473	)	(5,078	)
SL contracts		–		–		(1,265	)	(967	)	(4,426	)	(1,039	)	(13,750	)	(14,230	)
Adjustments to maintain reserves		33		46		45		324		13		175		40		(2,659	)
Net equity transactions		10,333,559		3,478,066		1,559,117		4,554,462		273,804		2,237,056		(4,042,155	)	(690,668	)
Net change in contract owners’ equity		11,945,883		3,634,593		2,277,528		5,986,584		503,108		2,586,632		(2,887,378	)	3,016,792
Contract owners’ equity beginning of period		3,634,593		–		15,053,806		9,067,222		2,981,692		395,060		30,448,786		27,431,994
Contract owners’ equity end of period	$	15,580,476		3,634,593		17,331,334		15,053,806		3,484,800		2,981,692		27,561,408		30,448,786
CHANGES IN UNITS:
Beginning units		305,044		–		1,022,336		684,910		181,154		28,635		2,272,060		2,307,747
Units purchased		935,817		305,417		590,374		593,254		34,807		163,274		461,365		628,584
Units redeemed		(128,883	)	(373	)	(487,684	)	(255,828	)	(17,931	)	(10,755	)	(801,711	)	(664,271	)
Ending units		1,111,978		305,044		1,125,026		1,022,336		198,030		181,154		1,931,714		2,272,060

(Continued)

18

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	ACVPInt					ACVPMidCpVal			ACVPUltra				ACVPVal
Investment activity:	2005			2004		2005		2004	2005		2004		2005		2004
Net investment income (loss)	$	528,468		215,367		5,225		–	(11,798	)	(8,604	)	517,787		531,603
Realized gain (loss) on investments		5,155,451		5,111,630		5		–	195,293		184,823		2,697,392		2,496,352
Change in unrealized gain (loss) on investments		(425,258	)	2,490,588		(8,011	)	–	(34,075	)	316,934		(6,420,369	)	4,817,950
Reinvested capital gains		–		–		14,612		–	–		–		6,692,806		461,102
Net increase (decrease) in contract owners’ equity resulting from operations		5,258,661		7,817,585		11,831		–	149,420		493,153		3,487,616		8,307,007
Equity transactions:
Purchase payments received from contract owners (note 6)		5,271,738		8,108,982		31,964		–	681,334		1,001,330		9,914,772		9,223,466
Transfers between funds		(11,462,744	)	(15,969,044	)	625,256		–	722,844		793,440		2,547,944		(836,390	)
Surrenders (note 6)		(6,422,696	)	(5,929,993	)	–		–	(517,410	)	(76,543	)	(5,497,446	)	(2,071,577	)
Death benefits (note 4)		(119,826	)	(63,964	)	–		–	(27,894	)	(2,474	)	(38,326	)	(128,332	)
Net policy repayments (loans) (note 5)		(357,330	)	(210,622	)	(8,410	)	–	(31,416	)	(12,664	)	(377,446	)	(54,154	)
Deductions for surrender charges (note 2d)		(95,250	)	(323,613	)	(2	)	–	(8,196	)	(10,489	)	(213,186	)	(186,385	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(1,868,954	)	(2,277,204	)	(12,338	)	–	(313,308	)	(264,128	)	(2,929,280	)	(2,989,748	)
Asset charges (note 3):
FPVUL & VEL contracts		(76,063	)	(76,978	)	(959	)	–	(8,003	)	(7,359	)	(159,138	)	(139,932	)
MSP contracts		(2,615	)	(2,916	)	–		–	(56	)	(35	)	(4,268	)	(3,812	)
SL contracts		(11,828	)	(12,137	)	(12	)	–	(1,095	)	(858	)	(42,173	)	(35,235	)
Adjustments to maintain reserves		(278	)	1,415,438		49		–	94		12,931		(1,211	)	(104,182	)
Net equity transactions		(15,145,846	)	(15,342,051	)	635,548		–	496,894		1,433,151		3,200,242		2,673,719
Net change in contract owners’ equity		(9,887,185	)	(7,524,466	)	647,379		–	646,314		1,926,304		6,687,858		10,980,726
Contract owners’ equity beginning of period		54,510,524		62,034,990		–		–	6,219,934		4,293,630		67,837,264		56,856,538
Contract owners’ equity end of period	$	44,623,339		54,510,524		647,379		–	6,866,248		6,219,934		74,525,122		67,837,264
CHANGES IN UNITS:
Beginning units		5,026,876		6,563,773		–		–	562,336		428,767		3,973,728		3,810,322
Units purchased		1,632,214		1,922,487		59,177		–	373,913		224,124		1,249,834		980,137
Units redeemed		(2,932,130	)	(3,459,384	)	(1,999	)	–	(328,341	)	(90,555	)	(1,061,188	)	(816,731	)
Ending units		3,726,960		5,026,876		57,178		–	607,908		562,336		4,162,374		3,973,728

(Continued)

19

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	ACVPVista				ACVPInflaPro				ACVPInt3			BCFTCpAsset
Investment activity:	2005			2004	2005		2004		2005		2004	2005		2004
Net investment income (loss)	$	(33	)	–	279,396		93,740		(585	)	–	(34,154	)	(18,648	)
Realized gain (loss) on investments		2,478		–	(4,576	)	31,130		6,347		–	1,664,897		506,585
Change in unrealized gain (loss) on investments		3,449		–	(187,807	)	46,422		455,203		–	(1,287,251	)	1,312,809
Reinvested capital gains		–		–	3,210		1,234		–		–	–		–
Net increase (decrease) in contract owners’ equity resulting from operations		5,894		–	90,223		172,526		460,965		–	343,492		1,800,746
Equity transactions:
Purchase payments received from contract owners (note 6)		4,440		–	839,206		682,774		1,927,016		–	2,101,360		1,557,056
Transfers between funds		86,262		–	1,691,412		3,208,826		2,041,846		–	4,985,406		3,997,490
Surrenders (note 6)		–		–	(201,380	)	(34,963	)	(63,830	)	–	(6,355,608	)	(14,209	)
Death benefits (note 4)		–		–	(15,492	)	(878	)	(188	)	–	(2,882	)	(23,956	)
Net policy repayments (loans) (note 5)		–		–	(1,112,108	)	(11,494	)	58,528		–	(15,062	)	–
Deductions for surrender charges (note 2d)		–		–	(22,322	)	(1,588	)	(3,346	)	–	–		(466	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(1,678	)	–	(306,238	)	(137,340	)	(139,062	)	–	(242,616	)	(135,050	)
Asset charges (note 3):
FPVUL & VEL contracts		(103	)	–	(17,180	)	(7,076	)	(6,536	)	–	–		–
MSP contracts		–		–	(334	)	(68	)	(134	)	–	–		–
SL contracts		–		–	(2,370	)	(922	)	(1,093	)	–	–		–
Adjustments to maintain reserves		57		–	151		7,462		180		–	54		122
Net equity transactions		88,978		–	853,345		3,704,733		3,813,381		–	470,652		5,380,987
Net change in contract owners’ equity		94,872		–	943,568		3,877,259		4,274,346		–	814,144		7,181,733
Contract owners’ equity beginning of period		–		–	5,002,492		1,125,233		–		–	12,391,962		5,210,229
Contract owners’ equity end of period	$	94,872		–	5,946,060		5,002,492		4,274,346		–	13,206,106		12,391,962
CHANGES IN UNITS:
Beginning units		–		–	457,932		108,990		–		–	785,776		414,222
Units purchased		10,582		–	224,700		367,112		384,151		–	729,676		457,370
Units redeemed		(2,304	)	–	(146,700	)	(18,170	)	(18,001	)	–	(702,854	)	(85,816	)
Ending units		8,278		–	535,932		457,932		366,150		–	812,598		785,776

(Continued)

20

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	CVSSoEq					CSGPVen				CSIntFoc				CSLCapV
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(32	)	(276	)	(346	)	(660	)	14,784		16,212		13,123		20,305
Realized gain (loss) on investments		5,207		2,258		120,331		7,066		80,800		33,403		79,118		350,739
Change in unrealized gain (loss) on investments		(6,255	)	5,916		(5,473	)	140,405		179,361		195,608		52,097		(3,491	)
Reinvested capital gains		–		–		–		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		(1,080	)	7,898		114,512		146,811		274,945		245,223		144,338		367,553
Equity transactions:
Purchase payments received from contract owners (note 6)		14,494		27,982		69,444		96,376		132,944		178,156		191,256		249,440
Transfers between funds		(82,468	)	45,380		(20,400	)	(64,524	)	(42,562	)	(57,836	)	14,246		(264,596	)
Surrenders (note 6)		–		–		(196,296	)	(48,252	)	(268,566	)	(132,454	)	(632,242	)	(127,174	)
Death benefits (note 4)		(122	)	(490	)	–		–		(4,126	)	(9,980	)	(3,994	)	(424	)
Net policy repayments (loans) (note 5)		–		–		(22,918	)	(16,190	)	1,996		(26,202	)	(10,964	)	13,278
Deductions for surrender charges (note 2d)		–		–		(4,434	)	(2,051	)	(6,958	)	(6,102	)	(8,048	)	(3,856	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(220	)	(1,300	)	(35,482	)	(38,704	)	(75,276	)	(83,684	)	(81,400	)	(177,942	)
Asset charges (note 3):
FPVUL & VEL contracts		–		–		(2,737	)	(2,363	)	(5,753	)	(5,463	)	(5,663	)	(5,273	)
MSP contracts		–		–		(13	)	(115	)	(467	)	(409	)	(539	)	(489	)
SL contracts		–		–		(218	)	(212	)	(1,336	)	(1,006	)	(1,195	)	(1,021	)
Adjustments to maintain reserves		18		16		16		32		3		57		(49	)	41,753
Net equity transactions		(68,298	)	71,588		(213,038	)	(76,003	)	(270,101	)	(144,923	)	(538,592	)	(276,304	)
Net change in contract owners’ equity		(69,378	)	79,486		(98,526	)	70,808		4,844		100,300		(394,254	)	91,249
Contract owners’ equity beginning of period		105,834		26,348		908,943		838,135		1,844,925		1,744,625		2,204,141		2,112,892
Contract owners’ equity end of period	$	36,456		105,834		810,417		908,943		1,849,769		1,844,925		1,809,887		2,204,141
CHANGES IN UNITS:
Beginning units		7,916		2,102		87,902		96,056		165,614		179,779		166,610		177,466
Units purchased		5,197		7,191		7,102		11,934		12,021		17,845		22,281		44,442
Units redeemed		(10,507	)	(1,377	)	(30,186	)	(20,088	)	(38,179	)	(32,010	)	(69,237	)	(55,298	)
Ending units		2,606		7,916		64,818		87,902		139,456		165,614		119,654		166,610

(Continued)

21

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	DryEuroEq					DryMidCapStS				DrySmCapIxS				DryStkIx
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	–		–		(2,170	)	1,826		(25,790	)	61,432		5,480,723		5,910,229
Realized gain (loss) on investments		–		–		77,325		45,575		1,458,278		1,111,154		2,229,250		(6,208,026	)
Change in unrealized gain (loss) on investments		–		1		(46,328	)	89,191		(665,187	)	1,150,304		9,063,983		36,690,781
Reinvested capital gains		–		–		2,846		30,048		37,946		451,800		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		–		1		31,673		166,640		805,247		2,774,690		16,773,956		36,392,984
Equity transactions:
Purchase payments received from contract owners (note 6)		(4	)	174		263,970		167,960		2,669,734		1,507,884		51,850,362		50,295,788
Transfers between funds		(40	)	(322	)	(442,534	)	(1,129,850	)	(2,940,962	)	8,847,686		(4,788,950	)	(23,413,482	)
Surrenders (note 6)		–		–		(412,780	)	(511	)	(1,560,060	)	(232,500	)	(30,480,010	)	(19,851,823	)
Death benefits (note 4)		–		–		(402	)	(700	)	(42,562	)	(14,604	)	(385,986	)	(418,016	)
Net policy repayments (loans) (note 5)		42		–		–		–		(148,542	)	(34,162	)	(1,897,464	)	(2,814,778	)
Deductions for surrender charges (note 2d)		–		–		–		–		(27,048	)	(20,068	)	(875,598	)	(949,964	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		–		142		(19,546	)	(36,926	)	(596,578	)	(539,556	)	(13,073,310	)	(14,224,384	)
Asset charges (note 3):
FPVUL & VEL contracts		–		4		–		–		(23,013	)	(16,610	)	(505,553	)	(483,806	)
MSP contracts		–		–		–		–		(135	)	(14	)	(19,098	)	(19,586	)
SL contracts		–		–		–		–		(4,694	)	(3,158	)	(278,004	)	(235,161	)
Adjustments to maintain reserves		2		1		(22	)	1,987		73		266		(880	)	23,777
Net equity transactions		–		(1	)	(611,314	)	(998,040	)	(2,673,787	)	9,495,164		(454,491	)	(12,091,435	)
Net change in contract owners’ equity		–		–		(579,641	)	(831,400	)	(1,868,540	)	12,269,854		16,319,465		24,301,549
Contract owners’ equity beginning of period		–		–		1,337,684		2,169,084		21,582,492		9,312,638		366,683,420		342,381,871
Contract owners’ equity end of period	$	–		–		758,043		1,337,684		19,713,952		21,582,492		383,002,885		366,683,420
CHANGES IN UNITS:
Beginning units		–		–		89,464		165,465		1,681,072		882,068		31,386,290		32,191,140
Units purchased		5		40		135,958		66,560		810,428		993,416		9,299,094		9,694,670
Units redeemed		(5	)	(40	)	(178,886	)	(142,561	)	(1,055,608	)	(194,412	)	(8,702,890	)	(10,499,520	)
Ending units		–		–		46,536		89,464		1,435,892		1,681,072		31,982,494		31,386,290

(Continued)

22

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	DrySRGro					DryVIFApp				DryVIFDevLd				DryVIFIntVal
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(2,904	)	59,303		(31,481	)	478,649		(344	)	1,505		(72,554	)	255,602
Realized gain (loss) on investments		(445,744	)	(377,284	)	619,610		52,675		16,986		11,959		2,757,657		1,975,267
Change in unrealized gain (loss) on investments		966,426		1,291,946		723,885		1,045,381		28,507		51,923		(437,900	)	2,535,712
Reinvested capital gains		–		–		–		–		–		–		474,426		477,666
Net increase (decrease) in contract owners’ equity resulting from operations		517,778		973,965		1,312,014		1,576,705		45,149		65,387		2,721,629		5,244,247
Equity transactions:
Purchase payments received from contract owners (note 6)		2,444,830		3,031,894		4,752,850		5,155,184		170,934		261,722		4,143,686		3,476,792
Transfers between funds		(1,127,874	)	(552,670	)	1,650,370		(1,923,886	)	(158,998	)	447,264		7,340,800		6,719,770
Surrenders (note 6)		(1,663,566	)	(848,938	)	(6,431,926	)	(2,852,877	)	(9,112	)	(12,945	)	(15,432,158	)	(911,332	)
Death benefits (note 4)		(80,700	)	(51,852	)	(78,188	)	(54,788	)	–		–		(30,600	)	(82,820	)
Net policy repayments (loans) (note 5)		(260,846	)	(236,826	)	(133,510	)	(189,090	)	(5,332	)	(1,696	)	(4	)	–
Deductions for surrender charges (note 2d)		(94,148	)	(85,377	)	(125,688	)	(171,561	)	(4,386	)	(1,984	)	–		(31,901	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(1,198,256	)	(1,390,290	)	(1,377,854	)	(1,531,036	)	(55,464	)	(54,734	)	(390,206	)	(345,852	)
Asset charges (note 3):
FPVUL & VEL contracts		(61,643	)	(61,239	)	(67,353	)	(59,428	)	(2,882	)	(2,293	)	–		–
MSP contracts		(2,320	)	(2,329	)	(1,517	)	(1,368	)	–		–		–		–
SL contracts		(5,597	)	(5,909	)	(14,153	)	(11,677	)	(342	)	(186	)	–		–
Adjustments to maintain reserves		95		(17,220	)	(53	)	376		10		1,587		23		336
Net equity transactions		(2,050,025	)	(220,756	)	(1,827,022	)	(1,640,151	)	(65,572	)	636,735		(4,368,459	)	8,824,993
Net change in contract owners’ equity		(1,532,247	)	753,209		(515,008	)	(63,446	)	(20,423	)	702,122		(1,646,830	)	14,069,240
Contract owners’ equity beginning of period		16,807,207		16,053,998		32,060,449		32,123,895		908,175		206,053		31,828,749		17,759,509
Contract owners’ equity end of period	$	15,274,960		16,807,207		31,545,441		32,060,449		887,752		908,175		30,181,919		31,828,749
CHANGES IN UNITS:
Beginning units		1,614,668		1,617,210		2,677,138		2,824,718		63,226		15,972		2,072,622		1,384,079
Units purchased		261,126		420,665		848,585		984,465		11,297		52,967		1,288,366		1,096,389
Units redeemed		(478,776	)	(423,207	)	(1,051,409	)	(1,132,045	)	(16,107	)	(5,713	)	1,600,008		(407,846	)
Ending units		1,397,018		1,614,668		2,474,314		2,677,138		58,416		63,226		1,760,980		2,072,622

(Continued)

23

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	FedAmLead					FedCapAp				FedQualBd				FidVIPEIS
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	4,577		2,560		3,696		658		3,185,853		3,408,509		1,369,839		1,135,439
Realized gain (loss) on investments		15,968		3,653		9,843		2,338		1,258,569		357,641		2,118,437		731,696
Change in unrealized gain (loss) on investments		(6,278	)	18,422		(6,170	)	12,662		(3,953,905	)	(1,501,593	)	(1,838,486	)	7,762,067
Reinvested capital gains		–		–		–		–		573,294		784,976		3,438,952		320,432
Net increase (decrease) in contract owners’ equity resulting from operations		14,267		24,635		7,369		15,658		1,063,811		3,049,533		5,088,742		9,949,634
Equity transactions:
Purchase payments received from contract owners (note 6)		58,906		27,860		87,266		74,242		13,737,160		13,140,522		15,756,584		14,140,360
Transfers between funds		(35,976	)	128,436		(75,044	)	203,034		2,793,926		(345,664	)	(7,412,500	)	996,764
Surrenders (note 6)		(1,036	)	(230	)	(5,448	)	(97	)	(15,016,478	)	(1,290,987	)	(11,971,226	)	(5,572,610	)
Death benefits (note 4)		(964	)	–		–		–		(169,066	)	(51,692	)	(255,046	)	(155,714	)
Net policy repayments (loans) (note 5)		(10,902	)	(5,434	)	(1,812	)	(4,606	)	(194,668	)	41,896		(744,550	)	(240,600	)
Deductions for surrender charges (note 2d)		(414	)	(540	)	(858	)	(84	)	(110,776	)	(85,221	)	(361,920	)	(245,813	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(18,050	)	(16,976	)	(28,736	)	(24,874	)	(2,608,400	)	(3,014,238	)	(4,347,476	)	(4,668,800	)
Asset charges (note 3):
FPVUL & VEL contracts		(1,076	)	(818	)	(1,062	)	(734	)	(73,832	)	(74,083	)	(206,659	)	(190,810	)
MSP contracts		–		–		–		–		(3,399	)	(3,479	)	(8,604	)	(7,785	)
SL contracts		(207	)	(128	)	(340	)	(82	)	(79,302	)	(67,031	)	(33,932	)	(30,570	)
Adjustments to maintain reserves		2		(77	)	(9	)	752		(1,850	)	(54,157	)	(12	)	17,681
Net equity transactions		(9,717	)	132,093		(26,043	)	247,551		(1,726,685	)	8,195,866		(9,585,341	)	4,042,103
Net change in contract owners’ equity		4,550		156,728		(18,674	)	263,209		(662,874	)	11,245,399		(4,496,599	)	13,991,737
Contract owners’ equity beginning of period		310,423		153,695		364,201		100,992		95,370,570		84,125,171		100,509,616		86,517,879
Contract owners’ equity end of period	$	314,973		310,423		345,527		364,201		94,707,696		95,370,570		96,013,017		100,509,616
CHANGES IN UNITS:
Beginning units		22,444		12,199		28,136		8,379		6,900,038		6,303,421		7,385,638		7,035,458
Units purchased		4,332		12,175		7,244		22,324		2,511,786		2,476,528		2,743,364		2,168,134
Units redeemed		(5,092	)	(1,930	)	(9,188	)	(2,567	)	(2,643,884	)	(1,879,911	)	(3,417,164	)	(1,817,954	)
Ending units		21,684		22,444		26,192		28,136		6,767,940		6,900,038		6,711,838		7,385,638

(Continued)

24

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	FidVIPGrS					FidVIPHIS				FidVIPOvS				FidVIPOvSR
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	315,755		30,821		3,622,550		2,109,409		180,586		306,414		(711	)	–
Realized gain (loss) on investments		(2,666,458	)	(6,416,202	)	1,862,736		1,028,520		2,861,790		2,951,398		27,717		–
Change in unrealized gain (loss) on investments		7,486,842		9,944,558		(4,923,157	)	(787,461	)	4,281,500		1,320,701		959,109		–
Reinvested capital gains		–		–		–		–		220,424		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		5,136,139		3,559,177		562,129		2,350,468		7,544,300		4,578,513		986,115		–
Equity transactions:
Purchase payments received from contract owners (note 6)		15,865,266		16,493,502		2,969,550		2,785,596		5,876,826		6,310,522		2,056,868		–
Transfers between funds		(13,195,054	)	(2,755,076	)	(9,516,732	)	5,531,034		(1,608,848	)	6,679,008		4,639,972		–
Surrenders (note 6)		(15,708,500	)	(5,758,486	)	(4,072,626	)	(1,199,507	)	(5,320,332	)	(3,264,689	)	(74,592	)	–
Death benefits (note 4)		(271,136	)	(172,812	)	(66,840	)	(88,758	)	(29,950	)	(97,444	)	(9,904	)	–
Net policy repayments (loans) (note 5)		(658,242	)	(427,150	)	(134,236	)	26,200		(288,352	)	(93,240	)	(133,300	)	–
Deductions for surrender charges (note 2d)		(491,654	)	(489,519	)	(41,476	)	(86,439	)	(95,482	)	(81,763	)	(6,544	)	–
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(5,448,834	)	(6,486,112	)	(1,018,984	)	(1,178,226	)	(1,535,702	)	(1,546,756	)	(207,510	)	–
Asset charges (note 3):
FPVUL & VEL contracts		(237,148	)	(241,652	)	(45,982	)	(48,135	)	(61,931	)	(54,634	)	(9,862	)	–
MSP contracts		(8,323	)	(8,401	)	(1,974	)	(2,229	)	(1,786	)	(1,680	)	(66	)	–
SL contracts		(34,472	)	(36,204	)	(7,344	)	(7,483	)	(33,543	)	(28,364	)	(1,707	)	–
Adjustments to maintain reserves		(4,612	)	(75,263	)	(7	)	(57,666	)	(102	)	372,976		203		–
Net equity transactions		(20,192,709	)	42,827		(11,936,651	)	5,674,387		(3,099,202	)	8,193,936		6,253,558		–
Net change in contract owners’ equity		(15,056,570	)	3,602,004		(11,374,522	)	8,024,855		4,445,098		12,772,449		7,239,673		–
Contract owners’ equity beginning of period		114,709,332		111,107,328		35,020,234		26,995,379		42,968,166		30,195,717		–		–
Contract owners’ equity end of period	$	99,652,762		114,709,332		23,645,712		35,020,234		47,413,264		42,968,166		7,239,673		–
CHANGES IN UNITS:
Beginning units		10,540,460		9,891,920		3,219,284		2,909,209		3,624,196		2,878,586		–		–
Units purchased		3,205,097		4,277,317		544,012		1,057,111		1,273,529		1,576,627		620,775		–
Units redeemed		(5,116,097	)	(3,628,777	)	(1,547,922	)	(747,036	)	(1,453,891	)	(831,017	)	(41,601	)	–
Ending units		8,629,460		10,540,460		2,215,374		3,219,284		3,443,834		3,624,196		579,174		–

(Continued)

25

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	FidVIPConS					FidVIPIGBdS				FidVIPGrOpS				FidVIPMCapS
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	92,541		108,194		150,542		34,548		119,420		65,304		(8,369	)	(1,265	)
Realized gain (loss) on investments		4,136,516		2,936,981		(23,034	)	(41,199	)	86,856		(458,387	)	249,701		127,988
Change in unrealized gain (loss) on investments		18,430,598		12,911,537		(108,323	)	54,096		1,056,050		1,497,336		2,420,458		963,441
Reinvested capital gains		23,808		–		94,116		24,872		–		–		151,660		–
Net increase (decrease) in contract owners’ equity resulting from operations		22,683,463		15,956,712		113,301		72,317		1,262,326		1,104,253		2,813,450		1,090,164
Equity transactions:
Purchase payments received from contract owners (note 6)		16,394,398		15,832,014		1,026,212		425,268		1,754,880		2,143,792		2,951,232		1,100,880
Transfers between funds		30,213,612		4,428,368		3,150,406		2,848,262		(1,134,170	)	347,844		9,715,822		4,575,574
Surrenders (note 6)		(13,859,172	)	(6,881,163	)	(245,338	)	(112,251	)	(1,844,984	)	(1,255,890	)	(674,746	)	(181,579	)
Death benefits (note 4)		(234,250	)	(260,368	)	(6,042	)	–		(16,488	)	(42,868	)	(1,216	)	–
Net policy repayments (loans) (note 5)		(1,233,364	)	(190,584	)	(12,548	)	(5,936	)	(147,918	)	(82,826	)	10,872		(55,096	)
Deductions for surrender charges (note 2d)		(357,934	)	(303,706	)	(9,022	)	(10,424	)	(81,292	)	(63,633	)	(36,688	)	(21,433	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(6,103,102	)	(5,731,266	)	(319,270	)	(149,376	)	(844,658	)	(970,196	)	(881,710	)	(319,584	)
Asset charges (note 3):
FPVUL & VEL contracts		(299,334	)	(246,359	)	(14,938	)	(6,030	)	(46,453	)	(45,330	)	(43,826	)	(13,839	)
MSP contracts		(8,483	)	(6,485	)	(1,062	)	(403	)	(1,949	)	(1,880	)	(1,247	)	(107	)
SL contracts		(42,938	)	(33,578	)	(5,038	)	(1,483	)	(8,096	)	(7,582	)	(6,080	)	(2,191	)
Adjustments to maintain reserves		(3,799	)	51,006		49		95		20		897		102		23
Net equity transactions		24,465,634		6,657,879		3,563,409		2,987,722		(2,371,108	)	22,328		11,032,515		5,082,648
Net change in contract owners’ equity		47,149,097		22,614,591		3,676,710		3,060,039		(1,108,782	)	1,126,581		13,845,965		6,172,812
Contract owners’ equity beginning of period		118,791,684		96,177,093		3,752,463		692,424		16,813,635		15,687,054		7,576,866		1,404,054
Contract owners’ equity end of period	$	165,940,781		118,791,684		7,429,173		3,752,463		15,704,853		16,813,635		21,422,831		7,576,866
CHANGES IN UNITS:
Beginning units		7,531,262		6,956,452		352,046		67,767		1,727,558		1,733,173		431,128		99,682
Units purchased		4,559,276		3,070,750		369,222		311,688		206,267		566,599		681,060		366,580
Units redeemed		(2,677,512	)	(2,495,940	)	(38,262	)	(27,409	)	(458,173	)	(572,214	)	(79,838	)	(35,134	)
Ending units		9,413,026		7,531,262		683,006		352,046		1,475,652		1,727,558		1,032,350		431,128

(Continued)

26

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	FidVIPVaIS					FidVIPCon2			FidFF2010			FidFF2020
Investment activity:	2005			2004		2005		2004	2005		2004	2005		2004
Net investment income (loss)	$	(3,084	)	(5,771	)	11,036		–	715		–	3,112		–
Realized gain (loss) on investments		115,688		405,439		107,447		–	1,380		–	206		–
Change in unrealized gain (loss) on investments		(133,755	)	178,029		54,320		–	4,610		–	18,735		–
Reinvested capital gains		181,130		11,920		145,810		–	–		–	–		–
Net increase (decrease) in contract owners’ equity resulting from operations		159,979		589,617		318,613		–	6,705		–	22,053		–
Equity transactions:
Purchase payments received from contract owners (note 6)		1,385,438		1,241,854		340,846		–	9,194		–	103,284		–
Transfers between funds		947,812		448,464		3,045,578		–	151,812		–	467,838		–
Surrenders (note 6)		(875,876	)	(210,668	)	(57,482	)	–	–		–	–		–
Death benefits (note 4)		(5,316	)	(8,734	)	–		–	–		–	–		–
Net policy repayments (loans) (note 5)		(59,056	)	(10,848	)	(299,276	)	–	–		–	–		–
Deductions for surrender charges (note 2d)		(27,204	)	(13,283	)	(7,448	)	–	–		–	–		–
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(338,404	)	(353,522	)	(46,042	)	–	(2,716	)	–	(6,724	)	–
Asset charges (note 3):
FPVUL & VEL contracts		(17,472	)	(14,087	)	(3,121	)	–	(296	)	–	(319	)	–
MSP contracts		(260	)	(625	)	(65	)	–	(7	)	–	(29	)	–
SL contracts		(1,356	)	(1,255	)	(610	)	–	(18	)	–	(182	)	–
Adjustments to maintain reserves		33		196		96		–	32		–	33		–
Net equity transactions		1,008,339		1,077,492		2,972,476		–	158,001		–	563,901		–
Net change in contract owners’ equity		1,168,318		1,667,109		3,291,089		–	164,706		–	585,954		–
Contract owners’ equity beginning of period		6,041,484		4,374,375		–		–	–		–	–		–
Contract owners’ equity end of period	$	7,209,802		6,041,484		3,291,089		–	164,706		–	585,954		–
CHANGES IN UNITS:
Beginning units		448,246		369,649		–		–	–		–	–		–
Units purchased		261,816		159,620		274,541		–	15,528		–	53,370		–
Units redeemed		(189,488	)	(81,023	)	(31,015	)	–	(286	)	–	(670	)	–
Ending units		520,574		448,246		243,526		–	15,242		–	52,700		–

(Continued)

27

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	FidFF2030				FrVIPRisDiv				FTVIPSmCpVal				FrVIPForSec
Investment activity:	2005			2004	2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	1,394		–	106,370		37,030		50,625		3,746		65,505		26,666
Realized gain (loss) on investments		1,749		–	262,438		118,323		312,333		13,427		331,176		49,975
Change in unrealized gain (loss) on investments		8,629		–	56,160		473,356		164,953		493,415		5,302		469,226
Reinvested capital gains		–		–	66,316		70,156		36,068		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		11,772		–	491,284		698,865		563,979		510,588		401,983		545,867
Equity transactions:
Purchase payments received from contract owners (note 6)		13,316		–	2,098,686		1,658,934		1,077,760		481,894		326,330		800,890
Transfers between funds		247,296		–	1,800,778		4,507,000		2,336,672		2,556,824		(482,022	)	1,855,158
Surrenders (note 6)		–		–	(315,366	)	(248,370	)	(172,148	)	(78,921	)	(116,026	)	(141,121	)
Death benefits (note 4)		–		–	(95,850	)	(19,008	)	(4,942	)	(2,226	)	(6,452	)	(3,480	)
Net policy repayments (loans) (note 5)		1,516		–	32,678		(191,624	)	(95,420	)	(9,024	)	(43,528	)	(6,538	)
Deductions for surrender charges (note 2d)		–		–	(22,302	)	(18,481	)	(27,576	)	(5,533	)	(6,634	)	(8,841	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(8,108	)	–	(722,572	)	(357,886	)	(391,454	)	(146,202	)	(199,476	)	(127,038	)
Asset charges (note 3):
FPVUL & VEL contracts		(238	)	–	(37,083	)	(18,451	)	(19,615	)	(6,113	)	(12,250	)	(6,960	)
MSP contracts		(126	)	–	(1,504	)	(667	)	(590	)	(13	)	(389	)	(109	)
SL contracts		–		–	(5,009	)	(2,296	)	(1,864	)	(536	)	(2,432	)	(1,053	)
Adjustments to maintain reserves		52		–	126		(8,863	)	60		148		9		(7,188	)
Net equity transactions		253,708		–	2,732,582		5,300,288		2,700,883		2,790,298		(542,870	)	2,353,720
Net change in contract owners’ equity		265,480		–	3,223,866		5,999,153		3,264,862		3,300,886		(140,887	)	2,899,587
Contract owners’ equity beginning of period		–		–	8,706,819		2,707,666		3,934,677		633,791		4,125,798		1,226,211
Contract owners’ equity end of period	$	265,480		–	11,930,685		8,706,819		7,199,539		3,934,677		3,984,911		4,125,798
CHANGES IN UNITS:
Beginning units		–		–	635,954		220,019		237,384		47,449		261,568		92,411
Units purchased		24,209		–	293,265		484,374		201,690		207,280		38,499		188,578
Units redeemed		(777	)	–	(88,739	)	(68,439	)	(40,534	)	(17,345	)	(71,387	)	(19,421	)
Ending units		23,432		–	840,480		635,954		398,540		237,384		228,680		261,568

(Continued)

28

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	FrVIPSmCpValS				FrVIPForSec2				FrVIPGISec3			TmDevMktS3
Investment activity:	2005			2004	2005		2004		2005		2004	2005		2004
Net investment income (loss)	$	(3,748	)	–	87,022		92,564		5,901		–	457		–
Realized gain (loss) on investments		40,902		–	1,534,763		1,199,799		(6,244	)	–	7,969		–
Change in unrealized gain (loss) on investments		74,889		–	(600,489	)	711,656		4,235		–	185,687		–
Reinvested capital gains		–		–	–		–		–		–	–		–
Net increase (decrease) in contract owners’ equity resulting from operations		112,043		–	1,021,296		2,004,019		3,892		–	194,113		–
Equity transactions:
Purchase payments received from contract owners (note 6)		196,696		–	2,131,210		2,142,386		16,304		–	209,176		–
Transfers between funds		2,137,536		–	2,125,994		761,090		529,856		–	1,691,242		–
Surrenders (note 6)		(41,170	)	–	(3,701,404	)	(562,239	)	(11,680	)	–	(24,274	)	–
Death benefits (note 4)		–		–	(18,098	)	(10,292	)	–		–	–		–
Net policy repayments (loans) (note 5)		–		–	(32,960	)	–		(582	)	–	(2,038	)	–
Deductions for surrender charges (note 2d)		–		–	–		(935	)	(774	)	–	(892	)	–
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(14,272	)	–	(248,898	)	(275,606	)	(9,576	)	–	(26,054	)	–
Asset charges (note 3):
FPVUL & VEL contracts		–		–	–		–		(565	)	–	(1,466	)	–
MSP contracts		–		–	–		–		(3	)	–	(37	)	–
SL contracts		–		–	–		–		(37	)	–	(212	)	–
Adjustments to maintain reserves		27		–	71		197		69		–	60		–
Net equity transactions		2,278,817		–	255,915		2,054,601		523,012		–	1,845,505		–
Net change in contract owners’ equity		2,390,860		–	1,277,211		4,058,620		526,904		–	2,039,618		–
Contract owners’ equity beginning of period		–		–	12,032,598		7,973,978		–		–	–		–
Contract owners’ equity end of period	$	2,390,860		–	13,309,809		12,032,598		526,904		–	2,039,618		–
CHANGES IN UNITS:
Beginning units		–		–	814,750		638,033		–		–	–		–
Units purchased		213,805		–	577,671		500,088		55,698		–	163,904		–
Units redeemed		(2,993	)	–	(570,789	)	(323,371	)	(2,374	)	–	(4,612	)	–
Ending units		210,812		–	821,632		814,750		53,324		–	159,292		–

(Continued)

29

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	FrVIPForSec3				GVITDryIntVal				GVITDMidCapI				GVITEmMrkts
Investment activity:	2005			2004	2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	6,397		–	55,001		34,796		623,730		226,272		62,640		88,806
Realized gain (loss) on investments		55,569		–	382,048		38,761		2,511,390		1,121,345		262,189		823,392
Change in unrealized gain (loss) on investments		165,707		–	(201,407	)	430,051		545,209		5,605,147		2,255,101		(626,920	)
Reinvested capital gains		–		–	164,802		–		4,400,544		1,548,608		1,416,338		869,916
Net increase (decrease) in contract owners’ equity resulting from operations		227,673		–	400,444		503,608		8,080,873		8,501,372		3,996,268		1,155,194
Equity transactions:
Purchase payments received from contract owners (note 6)		601,634		–	427,864		545,830		9,342,156		9,108,294		1,063,272		1,469,478
Transfers between funds		2,105,088		–	(1,727,918	)	3,504,332		3,263,140		4,448,740		2,726,062		2,333,432
Surrenders (note 6)		(21,206	)	–	(166,130	)	(23,470	)	(6,689,850	)	(3,369,706	)	(927,718	)	(302,028	)
Death benefits (note 4)		(78	)	–	(1,214	)	(2,400	)	(139,284	)	(73,274	)	(8,862	)	(10,868	)
Net policy repayments (loans) (note 5)		(152,176	)	–	(64,012	)	(10,212	)	(429,490	)	(269,480	)	(200,718	)	20,856
Deductions for surrender charges (note 2d)		(2,554	)	–	(14,418	)	(1,737	)	(128,538	)	(181,331	)	(23,722	)	(23,236	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(67,610	)	–	(249,934	)	(126,390	)	(2,271,002	)	(2,240,264	)	(517,360	)	(463,356	)
Asset charges (note 3):
FPVUL & VEL contracts		(3,636	)	–	(14,294	)	(6,341	)	(98,800	)	(85,832	)	(22,865	)	(19,049	)
MSP contracts		(6	)	–	(419	)	(172	)	(1,704	)	(1,727	)	(673	)	(359	)
SL contracts		(681	)	–	(1,722	)	(813	)	(40,622	)	(32,833	)	(2,600	)	(2,542	)
Adjustments to maintain reserves		135		–	(6,014	)	4,643		72		7,959		(79	)	218
Net equity transactions		2,458,910		–	(1,818,211	)	3,883,270		2,806,078		7,310,546		2,084,737		3,002,546
Net change in contract owners’ equity		2,686,583		–	(1,417,767	)	4,386,878		10,886,951		15,811,918		6,081,005		4,157,740
Contract owners’ equity beginning of period		–		–	4,717,622		330,744		65,972,715		50,160,797		11,187,057		7,029,317
Contract owners’ equity end of period	$	2,686,583		–	3,299,855		4,717,622		76,859,666		65,972,715		17,268,062		11,187,057
CHANGES IN UNITS:
Beginning units		–		–	281,276		23,901		3,680,328		3,148,003		804,812		610,156
Units purchased		261,576		–	30,182		269,128		1,562,959		1,178,344		529,950		453,619
Units redeemed		(23,584	)	–	(135,938	)	(11,753	)	(1,303,521	)	(646,019	)	(395,322	)	(258,963	)
Ending units		237,992		–	175,520		281,276		3,939,766		3,680,328		939,440		804,812

(Continued)

30

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GVITFHiInc					GVITGlFin1				GVITGlHlth				GVITGlTech
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	2,109,153		2,564,570		45,006		33,876		(4,508	)	(4,552	)	(6,698	)	(9,080	)
Realized gain (loss) on investments		322,559		1,250,192		88,039		186,721		204,903		(30,279	)	(525,154	)	611,568
Change in unrealized gain (loss) on investments		(2,006,710	)	(471,186	)	(184,975	)	115,389		(259,358	)	298,651		56,940		(347,539	)
Reinvested capital gains		–		–		289,878		171,722		503,492		17,644		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		425,002		3,343,576		237,948		507,708		444,529		281,464		(474,912	)	254,949
Equity transactions:
Purchase payments received from contract owners (note 6)		6,373,758		7,483,798		281,046		371,158		481,804		722,258		714,700		964,750
Transfers between funds		(6,839,472	)	(4,521,700	)	225,740		(74,404	)	(403,358	)	1,590,936		(4,730,636	)	3,887,812
Surrenders (note 6)		(14,345,400	)	(1,111,388	)	(256,480	)	(35,563	)	(924,374	)	(144,050	)	(507,860	)	(129,273	)
Death benefits (note 4)		(65,406	)	(112,286	)	(2,932	)	(7,368	)	(5,272	)	(35,664	)	(4,632	)	(6,512	)
Net policy repayments (loans) (note 5)		(785,914	)	53,334		(32,252	)	(3,710	)	(59,736	)	(1,194	)	(53,680	)	(12,252	)
Deductions for surrender charges (note 2d)		(57,228	)	(61,114	)	(3,222	)	(4,527	)	(17,834	)	(12,931	)	(13,206	)	(15,310	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(1,041,276	)	(1,311,610	)	(115,474	)	(138,498	)	(222,078	)	(219,134	)	(249,672	)	(301,508	)
Asset charges (note 3):
FPVUL & VEL contracts		(37,212	)	(45,479	)	(5,550	)	(5,261	)	(9,417	)	(9,432	)	(9,991	)	(12,107	)
MSP contracts		(1,470	)	(1,403	)	(54	)	(30	)	(228	)	(105	)	(361	)	(367	)
SL contracts		(25,315	)	(20,060	)	(1,022	)	(957	)	(1,895	)	(1,767	)	(824	)	(970	)
Adjustments to maintain reserves		(3	)	(30,643	)	(9	)	473		53		195		(1	)	(303	)
Net equity transactions		(16,824,938	)	321,449		89,791		101,313		(1,162,335	)	1,889,112		(4,856,163	)	4,373,960
Net change in contract owners’ equity		(16,399,936	)	3,665,025		327,739		609,021		(717,806	)	2,170,576		(5,331,075	)	4,628,909
Contract owners’ equity beginning of period		39,599,453		35,934,428		2,999,546		2,390,525		4,964,595		2,794,019		10,489,252		5,860,343
Contract owners’ equity end of period	$	23,199,517		39,599,453		3,327,285		2,999,546		4,246,789		4,964,595		5,158,177		10,489,252
CHANGES IN UNITS:
Beginning units		2,744,224		2,765,090		203,038		195,399		404,734		245,499		3,306,446		1,923,437
Units purchased		789,445		1,023,294		165,679		91,983		147,634		210,373		673,755		1,817,494
Units redeemed		(1,956,103	)	(1,044,160	)	(166,305	)	(84,344	)	(232,892	)	(51,138	)	2,344,845		(434,485	)
Ending units		1,577,566		2,744,224		202,412		203,038		319,476		404,734		1,635,356		3,306,446

(Continued)

31

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GVITGlUtl1					GVITGvtBd				GVITGrowth				GVITIntGro
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	60,298		20,807		4,759,437		7,538,438		10,461		46,932		25,055		13,051
Realized gain (loss) on investments		253,457		108,716		(2,242,014	)	959,610		(40,719	)	(370,475	)	268,998		263,101
Change in unrealized gain (loss) on investments		(476,164	)	165,443		1,197,817		(6,769,675	)	1,040,630		1,543,358		343,491		(27,696	)
Reinvested capital gains		343,590		117,478		236,680		2,833,814		–		–		7,948		–
Net increase (decrease) in contract owners’ equity resulting from operations		181,181		412,444		3,951,920		4,562,187		1,010,372		1,219,815		645,492		248,456
Equity transactions:
Purchase payments received from contract owners (note 6)		356,450		276,686		21,911,980		24,085,672		2,709,490		3,219,676		267,878		252,026
Transfers between funds		(175,202	)	1,366,596		(5,115,464	)	(32,459,168	)	(440,902	)	(891,008	)	1,185,928		(982,540	)
Surrenders (note 6)		(722,856	)	(23,567	)	(21,786,506	)	(11,441,756	)	(868,508	)	(681,844	)	(313,778	)	(39,152	)
Death benefits (note 4)		(760	)	(324	)	(133,674	)	(198,830	)	(43,706	)	(103,252	)	(2	)	(64	)
Net policy repayments (loans) (note 5)		(43,628	)	(2,610	)	(502,924	)	(351,504	)	(177,162	)	(122,620	)	(2,814	)	(2,500	)
Deductions for surrender charges (note 2d)		(3,230	)	(2,983	)	(187,848	)	(521,758	)	(77,088	)	(71,819	)	(5,918	)	(5,944	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(116,492	)	(59,288	)	(4,017,174	)	(4,884,014	)	(1,345,570	)	(1,447,388	)	(90,300	)	(69,098	)
Asset charges (note 3):
FPVUL & VEL contracts		(6,287	)	(2,524	)	(114,859	)	(115,093	)	(68,772	)	(64,513	)	(4,638	)	(3,348	)
MSP contracts		(462	)	(43	)	(15,592	)	(17,435	)	(2,172	)	(2,240	)	(245	)	(189	)
SL contracts		(1,553	)	(268	)	(87,766	)	(77,362	)	(7,459	)	(6,699	)	(190	)	(204	)
Adjustments to maintain reserves		42		161		85		(38,598	)	19		241		39		433,435
Net equity transactions		(713,978	)	1,551,836		(10,049,742	)	(26,019,846	)	(321,830	)	(171,466	)	1,035,960		(417,578	)
Net change in contract owners’ equity		(532,797	)	1,964,280		(6,097,822	)	(21,457,659	)	688,542		1,048,349		1,681,452		(169,122	)
Contract owners’ equity beginning of period		2,812,385		848,105		139,762,178		161,219,837		15,949,623		14,901,274		1,882,441		2,051,563
Contract owners’ equity end of period	$	2,279,588		2,812,385		133,664,356		139,762,178		16,638,165		15,949,623		3,563,893		1,882,441
CHANGES IN UNITS:
Beginning units		201,304		78,867		10,130,786		11,739,257		2,195,790		2,222,372		243,720		302,911
Units purchased		68,084		161,650		3,838,241		4,124,396		485,451		583,168		189,792		75,954
Units redeemed		(116,096	)	(39,213	)	(4,434,503	)	(5,732,867	)	(529,575	)	(609,750	)	(79,468	)	(135,145	)
Ending units		153,292		201,304		9,534,524		10,130,786		2,151,666		2,195,790		354,044		243,720

(Continued)

32

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GVITJPBal					GVITSMdCpGr				GVITMyMkt				GVITNWFund
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	381,003		365,375		(7,156	)	(14,726	)	3,194,754		1,092,463		2,693,622		2,751,977
Realized gain (loss) on investments		984,632		176,924		3,895,659		903,791		–		–		651,321		105,578
Change in unrealized gain (loss) on investments		(887,239	)	1,096,457		(3,047,260	)	1,889,603		–		–		22,877,449		18,602,994
Reinvested capital gains		–		–		–		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		478,396		1,638,756		841,243		2,778,668		3,194,754		1,092,463		26,222,392		21,460,549
Equity transactions:
Purchase payments received from contract owners (note 6)		2,349,346		2,759,896		2,403,218		2,740,526		59,551,946		91,624,704		6,624,320		7,086,110
Transfers between funds		(1,165,522	)	(1,062,356	)	(11,690,018	)	8,464,512		(42,927,020	)	(75,103,776	)	204,038,642		(754,832	)
Surrenders (note 6)		(1,832,352	)	(1,835,320	)	(3,225,070	)	(739,209	)	(15,681,862	)	(38,910,568	)	(3,009,076	)	(2,436,781	)
Death benefits (note 4)		(218,846	)	(39,280	)	(17,596	)	(15,356	)	(412,398	)	(461,846	)	(251,798	)	(199,992	)
Net policy repayments (loans) (note 5)		(125,112	)	5,368		(195,112	)	(170,470	)	(6,812	)	(1,204,930	)	(648,492	)	(320,612	)
Deductions for surrender charges (note 2d)		(50,382	)	(91,815	)	(68,996	)	(91,667	)	(1,280,192	)	(1,487,186	)	(263,592	)	(205,286	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(930,210	)	(1,007,232	)	(977,532	)	(1,124,136	)	(9,684,038	)	(11,958,702	)	(5,077,432	)	(5,361,854	)
Asset charges (note 3):
FPVUL & VEL contracts		(42,879	)	(41,577	)	(48,945	)	(45,277	)	(384,378	)	(419,623	)	(184,722	)	(173,614	)
MSP contracts		(2,511	)	(2,267	)	(1,022	)	(824	)	(25,514	)	(27,238	)	(13,351	)	(12,330	)
SL contracts		(9,929	)	(8,513	)	(6,129	)	(5,401	)	(80,260	)	(83,030	)	(15,435	)	(14,327	)
Adjustments to maintain reserves		(697	)	194		(2	)	221		149,406		(2,214,087	)	2,184		1,782
Net equity transactions		(2,029,094	)	(1,322,902	)	(13,827,204	)	9,012,919		(10,781,122	)	(40,246,282	)	201,201,248		(2,391,736	)
Net change in contract owners’ equity		(1,550,698	)	315,854		(12,985,961	)	11,791,587		(7,586,368	)	(39,153,819	)	227,423,640		19,068,813
Contract owners’ equity beginning of period		20,969,135		20,653,281		29,297,196		17,505,609		127,029,596		166,183,415		243,516,028		224,447,215
Contract owners’ equity end of period	$	19,418,437		20,969,135		16,311,235		29,297,196		119,443,228		127,029,596		470,939,668		243,516,028
CHANGES IN UNITS:
Beginning units		1,828,006		1,965,948		2,993,638		1,734,720		10,347,602		13,832,030		22,700,198		22,934,562
Units purchased		503,846		462,314		432,791		1,770,411		5,033,223		8,059,518		19,832,722		917,003
Units redeemed		(686,178	)	(600,256	)	(2,173,377	)	(511,493	)	(5,881,527	)	(11,543,946	)	(1,043,418	)	(1,151,367	)
Ending units		1,645,674		1,828,006		1,253,052		2,993,638		9,499,298		10,347,602		41,489,502		22,700,198

(Continued)

33

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GVITLead					GVITNStrVal			GVITSmCapGr				GVITSmCapVal
Investment activity:	2005			2004		2005	2004		2005		2004		2005		2004
Net investment income (loss)	$	10,016		2,093		–	(458	)	(26,072	)	(27,171	)	(51,701	)	(122,124	)
Realized gain (loss) on investments		78,658		24,049		–	489,317		1,655,433		1,409,400		3,010,666		2,324,489
Change in unrealized gain (loss) on investments		(134,132	)	67,267		–	(371,091	)	(103,778	)	1,674,218		(10,694,552	)	5,004,439
Reinvested capital gains		131,530		9,814		–	–		–		–		9,974,530		6,436,436
Net increase (decrease) in contract owners’ equity resulting from operations		86,072		103,223		–	117,768		1,525,583		3,056,447		2,238,943		13,643,240
Equity transactions:
Purchase payments received from contract owners (note 6)		81,950		89,246		–	61,038		4,919,556		3,870,884		11,548,638		11,262,248
Transfers between funds		280,028		209,198		–	(1,771,832	)	(4,744,034	)	2,840,268		(6,831,554	)	(4,422,156	)
Surrenders (note 6)		(283,570	)	(30,949	)	–	(2,570	)	(3,131,300	)	(563,151	)	(9,258,820	)	(3,082,384	)
Death benefits (note 4)		(2	)	(2	)	–	–		(22,744	)	(19,870	)	(134,276	)	(86,192	)
Net policy repayments (loans) (note 5)		39,324		(10,408	)	–	(426	)	(230,390	)	(80,632	)	(447,176	)	(511,704	)
Deductions for surrender charges (note 2d)		(4,038	)	(1,397	)	–	(99	)	(69,526	)	(53,430	)	(227,778	)	(186,303	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(33,634	)	(23,120	)	–	(24,384	)	(964,198	)	(1,043,252	)	(3,327,252	)	(3,786,368	)
Asset charges (note 3):
FPVUL & VEL contracts		(1,679	)	(997	)	–	(1,177	)	(45,750	)	(41,546	)	(164,326	)	(158,950	)
MSP contracts		–		–		–	(188	)	(793	)	(673	)	(5,167	)	(4,943	)
SL contracts		(49	)	(42	)	–	(197	)	(14,601	)	(11,652	)	(31,488	)	(31,043	)
Adjustments to maintain reserves		4		91		–	(18	)	(2,405	)	988,085		(4,800	)	(71,394	)
Net equity transactions		78,334		231,620		–	(1,739,853	)	(4,306,185	)	5,885,031		(8,883,999	)	(1,079,189	)
Net change in contract owners’ equity		164,406		334,843		–	(1,622,085	)	(2,780,602	)	8,941,478		(6,645,056	)	12,564,051
Contract owners’ equity beginning of period		699,824		364,981		–	1,622,085		28,786,529		19,845,051		92,889,465		80,325,414
Contract owners’ equity end of period	$	864,230		699,824		–	–		26,005,927		28,786,529		86,244,409		92,889,465
CHANGES IN UNITS:
Beginning units		55,742		34,475		–	156,411		1,863,398		1,453,721		4,231,442		4,241,435
Units purchased		32,344		29,157		–	24,511		618,362		700,563		1,603,362		944,605
Units redeemed		(25,728	)	(7,890	)	–	(180,922	)	(926,478	)	(290,886	)	(1,967,304	)	(954,598	)
Ending units		62,358		55,742		–	–		1,555,282		1,863,398		3,867,500		4,231,442

(Continued)

34

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GVITSmComp					GVITTGroFoc				GVITUSGro				GVITVKMultiSec
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(170,116	)	(174,098	)	–		(302	)	(3,737	)	(3,470	)	704,651		819,412
Realized gain (loss) on investments		3,737,587		4,271,079		–		93,434		97,675		(375,192	)	55,235		721,092
Change in unrealized gain (loss) on investments		(4,647,318	)	660,494		–		(66,842	)	(551,367	)	578,925		(490,913	)	(502,965	)
Reinvested capital gains		12,618,912		10,264,062		–		–		967,114		165,876		105,992		–
Net increase (decrease) in contract owners’ equity resulting from operations		11,539,065		15,021,537		–		26,290		509,685		366,139		374,965		1,037,539
Equity transactions:
Purchase payments received from contract owners (note 6)		13,189,146		12,360,798		582		95,836		618,688		685,388		2,328,590		2,572,366
Transfers between funds		6,068,378		(7,948,742	)	(3,206	)	(1,186,628	)	2,635,942		(834,030	)	6,286,074		(7,238,858	)
Surrenders (note 6)		(8,628,358	)	(6,004,130	)	–		(22,176	)	(800,512	)	(176,278	)	(2,489,696	)	(2,328,979	)
Death benefits (note 4)		(173,698	)	(194,390	)	–		(386	)	(4,592	)	(7,312	)	(86,920	)	(9,534	)
Net policy repayments (loans) (note 5)		(121,272	)	(392,018	)	–		(2,830	)	(31,166	)	(14,916	)	(127,030	)	(66,170	)
Deductions for surrender charges (note 2d)		(151,950	)	(269,700	)	–		(858	)	(8,178	)	(11,543	)	(51,082	)	(28,653	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(3,277,318	)	(3,220,796	)	2,568		(22,424	)	(212,052	)	(249,472	)	(737,666	)	(823,722	)
Asset charges (note 3):
FPVUL & VEL contracts		(138,233	)	(116,411	)	54		(827	)	(9,349	)	(9,914	)	(28,630	)	(26,060	)
MSP contracts		(4,247	)	(3,675	)	–		(8	)	(327	)	(276	)	(3,643	)	(3,253	)
SL contracts		(23,268	)	(20,594	)	–		(175	)	(1,229	)	(942	)	(4,972	)	(3,679	)
Adjustments to maintain reserves		189		(27,428	)	2		(8,761	)	(12	)	523		61		(89,250	)
Net equity transactions		6,739,369		(5,837,086	)	–		(1,149,237	)	2,187,213		(618,772	)	5,085,086		(8,045,792	)
Net change in contract owners’ equity		18,278,434		9,184,451		–		(1,122,947	)	2,696,898		(252,633	)	5,460,051		(7,008,253	)
Contract owners’ equity beginning of period		89,651,437		80,466,986		–		1,122,947		4,083,561		4,336,194		14,091,749		21,100,002
Contract owners’ equity end of period	$	107,929,871		89,651,437		–		–		6,780,459		4,083,561		19,551,800		14,091,749
CHANGES IN UNITS:
Beginning units		4,948,194		5,165,973		–		337,566		290,806		346,883		980,208		1,587,574
Units purchased		3,368,175		1,744,812		1,416		63,741		228,574		111,043		824,057		417,112
Units redeemed		(2,548,995	)	(1,962,591	)	(1,416	)	(401,307	)	(87,900	)	(167,120	)	(452,789	)	(1,024,478	)
Ending units		5,767,374		4,948,194		–		–		431,480		290,806		1,351,476		980,208

(Continued)

35

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GVITCVal					GVITWLead				GVITDryIntVal3			GVITEmMrkts3
Investment activity:	2005			2004		2005		2004		2005		2004	2005		2004
Net investment income (loss)	$	156,510		116,619		49,630		(1,131	)	27,628		–	5,044		–
Realized gain (loss) on investments		1,305,284		528,826		1,186,830		155,078		12,994		–	82,878		–
Change in unrealized gain (loss) on investments		(1,324,762	)	911,636		(451,565	)	451,020		329,682		–	257,113		–
Reinvested capital gains		280,896		–		–		–		44,172		–	436,362		–
Net increase (decrease) in contract owners’ equity resulting from operations		417,928		1,557,081		784,895		604,967		414,476		–	781,397		–
Equity transactions:
Purchase payments received from contract owners (note 6)		1,658,134		1,307,022		470,616		528,376		804,678		–	918,556		–
Transfers between funds		(1,053,884	)	2,482,872		(353,660	)	640,260		3,739,026		–	4,881,610		–
Surrenders (note 6)		(971,204	)	(159,407	)	(658,382	)	(131,528	)	(30,996	)	–	(74,868	)	–
Death benefits (note 4)		(20,678	)	(9,702	)	(5,270	)	(6,904	)	(4,740	)	–	–		–
Net policy repayments (loans) (note 5)		(51,712	)	(72,056	)	(23,198	)	11,246		(175,306	)	–	(242,554	)	–
Deductions for surrender charges (note 2d)		(34,204	)	(20,575	)	(29,412	)	(12,284	)	(5,070	)	–	(3,340	)	–
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(575,530	)	(476,054	)	(266,276	)	(254,858	)	(127,042	)	–	(87,142	)	–
Asset charges (note 3):
FPVUL & VEL contracts		(29,150	)	(18,785	)	(14,568	)	(12,977	)	(6,801	)	–	(4,316	)	–
MSP contracts		(1,230	)	(829	)	(313	)	(286	)	(37	)	–	(36	)	–
SL contracts		(3,818	)	(2,867	)	(1,523	)	(1,382	)	(598	)	–	(798	)	–
Adjustments to maintain reserves		(65	)	41,631		(15	)	(80	)	87		–	78		–
Net equity transactions		(1,083,341	)	3,071,250		(882,001	)	759,583		4,193,201		–	5,387,190		–
Net change in contract owners’ equity		(665,413	)	4,628,331		(97,106	)	1,364,550		4,607,677		–	6,168,587		–
Contract owners’ equity beginning of period		11,835,628		7,207,297		5,017,226		3,652,676		–		–	–		–
Contract owners’ equity end of period	$	11,170,215		11,835,628		4,920,120		5,017,226		4,607,677		–	6,168,587		–
CHANGES IN UNITS:
Beginning units		1,010,062		728,021		440,648		359,266		–		–	–		–
Units purchased		292,506		381,660		189,720		178,586		434,685		–	493,064		–
Units redeemed		(429,190	)	(99,619	)	(275,646	)	(97,204	)	(32,337	)	–	(30,544	)	–
Ending units		873,378		1,010,062		354,722		440,648		402,348		–	462,520		–

(Continued)

36

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GVITFHiInc3				GVITGlHlth3			GVITGlTech3			GVITMyMkt5
Investment activity:	2005			2004	2005		2004	2005		2004	2005		2004
Net investment income (loss)	$	183,162		–	(107	)	–	(86	)	–	8,508,706		2,205,220
Realized gain (loss) on investments		1,336		–	2,277		–	21,549		–	–		–
Change in unrealized gain (loss) on investments		(93,976	)	–	(95,828	)	–	27,832		–	–		–
Reinvested capital gains		–		–	125,938		–	–		–	–		–
Net increase (decrease) in contract owners’ equity resulting from operations		90,522		–	32,280		–	49,295		–	8,508,706		2,205,220
Equity transactions:
Purchase payments received from contract owners (note 6)		1,495,072		–	366,960		–	385,176		–	206,045,210		181,752,108
Transfers between funds		2,962,702		–	1,012,502		–	723,270		–	(318,477,526	)	(34,685,180	)
Surrenders (note 6)		(50,746	)	–	(15,840	)	–	(42,726	)	–	(90,778,732	)	(31,071,081	)
Death benefits (note 4)		(14	)	–	–		–	–		–	(118,810	)	(223,796	)
Net policy repayments (loans) (note 5)		134,332		–	16,666		–	15,336		–	(677,190	)	(2,686	)
Deductions for surrender charges (note 2d)		(4,498	)	–	(1,140	)	–	(2,848	)	–	–		(582,301	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(94,782	)	–	(31,544	)	–	(28,138	)	–	(5,512,548	)	(6,034,070	)
Asset charges (note 3):
FPVUL & VEL contracts		(4,684	)	–	(1,584	)	–	(1,371	)	–	–		–
MSP contracts		(17	)	–	–		–	(6	)	–	–		–
SL contracts		(2,149	)	–	(395	)	–	(151	)	–	–		–
Adjustments to maintain reserves		303		–	108		–	166		–	(1,022	)	1,246
Net equity transactions		4,435,519		–	1,345,733		–	1,048,708		–	(209,520,618	)	109,154,240
Net change in contract owners’ equity		4,526,041		–	1,378,013		–	1,098,003		–	(201,011,912	)	111,359,460
Contract owners’ equity beginning of period		–		–	–		–	–		–	397,214,945		285,855,485
Contract owners’ equity end of period	$	4,526,041		–	1,378,013		–	1,098,003		–	196,203,033		397,214,945
CHANGES IN UNITS:
Beginning units		–		–	–		–	–		–	39,192,402		28,409,452
Units purchased		462,157		–	134,867		–	95,265		–	27,053,095		26,328,821
Units redeemed		(32,773	)	–	(6,585	)	–	(6,123	)	–	(47,333,809	)	(15,545,871	)
Ending units		429,384		–	128,282		–	89,142		–	18,911,688		39,192,402

(Continued)

37

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GVITIDAgg					GVITIDCon				GVITIDMod				GVITIDModAgg
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	289,190		165,619		234,921		149,212		897,528		518,548		938,989		490,408
Realized gain (loss) on investments		615,352		187,284		219,555		45,003		744,897		331,395		1,254,258		480,505
Change in unrealized gain (loss) on investments		12,811		837,817		(329,049	)	44,902		(103,063	)	1,575,544		122,125		2,080,811
Reinvested capital gains		327,252		243,504		199,790		65,900		708,206		135,430		999,754		422,100
Net increase (decrease) in contract owners’ equity resulting from operations		1,244,605		1,434,224		325,217		305,017		2,247,568		2,560,917		3,315,126		3,473,824
Equity transactions:
Purchase payments received from contract owners (note 6)		3,447,214		3,434,152		2,136,868		2,139,028		9,144,332		7,928,864		11,048,024		7,254,544
Transfers between funds		2,915,728		2,820,256		6,892,036		1,412,054		8,129,376		9,313,826		9,653,958		13,619,108
Surrenders (note 6)		(787,234	)	(89,584	)	(7,199,914	)	(166,685	)	(1,604,592	)	(545,430	)	(3,544,782	)	(531,514	)
Death benefits (note 4)		(3,628	)	(3,270	)	(16,968	)	(3,970	)	(33,088	)	(22,514	)	(6,712	)	(942,384	)
Net policy repayments (loans) (note 5)		(96,544	)	(112,058	)	(24,024	)	(15,024	)	(582,182	)	(344,684	)	(262,200	)	(353,846	)
Deductions for surrender charges (note 2d)		(131,596	)	(39,980	)	(19,818	)	(11,281	)	(197,606	)	(88,106	)	(354,622	)	(95,420	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(1,180,948	)	(784,266	)	(585,678	)	(457,690	)	(3,021,900	)	(2,179,316	)	(3,441,332	)	(2,249,180	)
Asset charges (note 3):
FPVUL & VEL contracts		(43,587	)	(28,497	)	(15,957	)	(13,122	)	(116,128	)	(75,434	)	(144,086	)	(81,649	)
MSP contracts		(477	)	(334	)	(4,901	)	(3,162	)	(10,823	)	(6,469	)	(7,326	)	(4,587	)
SL contracts		(4,658	)	(3,704	)	(5,037	)	(3,914	)	(14,565	)	(10,205	)	(14,989	)	(8,312	)
Adjustments to maintain reserves		146		161		(1	)	147		185		(5,549	)	77		202
Net equity transactions		4,114,416		5,192,876		1,156,606		2,876,381		11,693,009		13,964,983		12,926,010		16,606,962
Net change in contract owners’ equity		5,359,021		6,627,100		1,481,823		3,181,398		13,940,577		16,525,900		16,241,136		20,080,786
Contract owners’ equity beginning of period		13,100,671		6,473,571		8,154,875		4,973,477		32,670,282		16,144,382		36,131,272		16,050,486
Contract owners’ equity end of period	$	18,459,692		13,100,671		9,636,698		8,154,875		46,610,859		32,670,282		52,372,408		36,131,272
CHANGES IN UNITS:
Beginning units		1,046,694		589,444		719,758		458,729		2,721,654		1,471,635		2,932,166		1,459,312
Units purchased		573,546		567,157		939,743		339,113		1,591,266		1,561,230		1,784,437		1,880,490
Units redeemed		(251,712	)	(109,907	)	(836,409	)	(78,084	)	(624,354	)	(311,211	)	(746,623	)	(407,636	)
Ending units		1,368,528		1,046,694		823,092		719,758		3,688,566		2,721,654		3,969,980		2,932,166

(Continued)

38

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GVITIDModCon					GSVITMidCap				JanBal				JanCapAp
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	416,545		261,289		154,348		125,668		152,654		151,038		(34,927	)	(42,874	)
Realized gain (loss) on investments		353,988		178,632		3,824,811		2,310,929		459,986		70,816		3,013,007		1,143,877
Change in unrealized gain (loss) on investments		(382,105	)	325,139		(2,832,569	)	1,269,480		26,626		363,085		1,708,676		5,549,490
Reinvested capital gains		319,252		82,536		4,779,360		3,321,362		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		707,680		847,596		5,925,950		7,027,439		639,266		584,939		4,686,756		6,650,493
Equity transactions:
Purchase payments received from contract owners (note 6)		2,403,516		2,154,210		8,697,054		4,622,376		1,225,974		1,160,576		5,269,780		6,422,848
Transfers between funds		5,932,492		3,059,048		19,116,412		10,080,864		(771,402	)	1,679,870		(2,287,536	)	(7,394,698	)
Surrenders (note 6)		(961,250	)	(60,961	)	(16,028,218	)	(848,903	)	(807,376	)	(69,424	)	(4,583,720	)	(1,752,563	)
Death benefits (note 4)		(275,142	)	(99,902	)	(36,842	)	(65,516	)	(6,256	)	(28,654	)	(17,062	)	(18,232	)
Net policy repayments (loans) (note 5)		(28,104	)	(118,076	)	(1,252	)	60,952		(27,354	)	472		(330,624	)	(134,220	)
Deductions for surrender charges (note 2d)		(73,072	)	(19,732	)	–		(22,239	)	(3,852	)	(4,315	)	(169,738	)	(120,894	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(860,714	)	(760,400	)	(824,296	)	(514,068	)	(184,630	)	(178,672	)	(1,994,710	)	(2,242,458	)
Asset charges (note 3):
FPVUL & VEL contracts		(29,899	)	(24,201	)	–		–		(3,367	)	(2,507	)	(100,236	)	(91,384	)
MSP contracts		(5,848	)	(4,040	)	–		–		–		–		(2,390	)	(2,106	)
SL contracts		(7,150	)	(8,196	)	–		–		(549	)	(435	)	(13,231	)	(11,896	)
Adjustments to maintain reserves		178		87		150		467		44		193		(1,624	)	463
Net equity transactions		6,095,007		4,117,837		10,923,008		13,313,933		(578,768	)	2,557,104		(4,231,091	)	(5,345,140	)
Net change in contract owners’ equity		6,802,687		4,965,433		16,848,958		20,341,372		60,498		3,142,043		455,665		1,305,353
Contract owners’ equity beginning of period		13,908,122		8,942,689		37,892,546		17,551,174		8,250,482		5,108,439		42,449,914		41,144,561
Contract owners’ equity end of period	$	20,710,809		13,908,122		54,741,504		37,892,546		8,310,980		8,250,482		42,905,579		42,449,914
CHANGES IN UNITS:
Beginning units		1,186,558		815,829		2,386,580		1,387,658		670,846		449,080		5,560,894		6,358,834
Units purchased		879,817		518,256		2,517,363		1,543,439		241,647		491,143		1,685,267		1,474,265
Units redeemed		(369,367	)	(147,527	)	(1,839,899	)	(544,517	)	(283,629	)	(269,377	)	(2,255,141	)	(2,272,205	)
Ending units		1,697,008		1,186,558		3,064,044		2,386,580		628,864		670,846		4,991,020		5,560,894

(Continued)

39

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	JanGlTech					JanIntGro				JanRMgLgCap				OGMidCapGr
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(3,541	)	(8,121	)	371,496		257,097		5,763		3,669		(8,296	)	(8,348	)
Realized gain (loss) on investments		(476,937	)	(645,737	)	5,363,604		2,563,889		6,996		5,557		343,944		331,182
Change in unrealized gain (loss) on investments		1,867,653		695,001		5,238,898		3,612,548		(49,154	)	1,454		(31,068	)	8,430
Reinvested capital gains		–		–		–		–		83,508		20,216		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		1,387,175		41,143		10,973,998		6,433,534		47,113		30,896		304,580		331,264
Equity transactions:
Purchase payments received from contract owners (note 6)		2,281,730		2,795,478		4,705,514		5,532,358		49,474		26,758		494,648		158,474
Transfers between funds		(1,413,638	)	(1,856,896	)	(5,758,140	)	(3,450,776	)	147,744		263,556		782,682		(276,630	)
Surrenders (note 6)		(1,334,454	)	(653,867	)	(5,494,906	)	(1,699,195	)	(44,184	)	(1,148	)	(870,990	)	(177,267	)
Death benefits (note 4)		(4,292	)	(8,038	)	(17,372	)	(31,014	)	–		–		(2,886	)	(1,030	)
Net policy repayments (loans) (note 5)		(99,806	)	(47,148	)	(217,512	)	(118,742	)	(3,394	)	(8,162	)	–		–
Deductions for surrender charges (note 2d)		(71,836	)	(63,144	)	(188,528	)	(120,978	)	(3,450	)	(210	)	–		(461	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(795,868	)	(1,005,570	)	(1,685,664	)	(1,873,360	)	(21,760	)	(11,240	)	(66,548	)	(68,502	)
Asset charges (note 3):
FPVUL & VEL contracts		(42,571	)	(42,706	)	(87,703	)	(75,471	)	(1,339	)	(592	)	–		–
MSP contracts		(783	)	(828	)	(1,797	)	(1,518	)	(275	)	–		–		–
SL contracts		(8,667	)	(7,949	)	(12,028	)	(9,874	)	(93	)	(39	)	–		–
Adjustments to maintain reserves		1,037		365		(6	)	72,014		58		53		10		87
Net equity transactions		(1,489,148	)	(890,303	)	(8,758,142	)	(1,776,556	)	122,781		268,976		336,916		(365,329	)
Net change in contract owners’ equity		(101,973	)	(849,160	)	2,215,856		4,656,978		169,894		299,872		641,496		(34,065	)
Contract owners’ equity beginning of period		14,227,446		15,076,606		41,141,323		36,484,345		340,199		40,327		2,761,909		2,795,974
Contract owners’ equity end of period	$	14,125,473		14,227,446		43,357,179		41,141,323		510,093		340,199		3,403,405		2,761,909
CHANGES IN UNITS:
Beginning units		3,971,414		4,234,188		5,514,336		5,805,013		23,542		3,278		192,734		219,218
Units purchased		871,305		1,097,931		1,598,196		1,967,284		13,493		22,085		261,089		153,069
Units redeemed		(1,311,087	)	(1,360,705	)	(2,714,954	)	(2,257,961	)	(5,209	)	(1,821	)	(239,581	)	(179,553	)
Ending units		3,531,632		3,971,414		4,397,578		5,514,336		31,826		23,542		214,242		192,734

(Continued)

40

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	OGMidCapV					LASMdCpVaVC			MFSVITInvGrwI				MFSVITValIn
Investment activity:	2005			2004		2005		2004	2005		2004		2005		2004
Net investment income (loss)	$	3,396		3,808		724		–	9,985		(393	)	9,978		2,441
Realized gain (loss) on investments		89,704		31,563		731		–	48,694		6,510		39,281		5,319
Change in unrealized gain (loss) on investments		(70,259	)	61,159		(4,233	)	–	121,870		175,975		21,116		87,483
Reinvested capital gains		66,486		–		13,692		–	–		–		32,118		8,180
Net increase (decrease) in contract owners’ equity resulting from operations		89,327		96,530		10,914		–	180,549		182,092		102,493		103,423
Equity transactions:
Purchase payments received from contract owners (note 6)		120,354		200,088		(2	)	–	722,216		421,652		363,110		237,958
Transfers between funds		(297,044	)	322,510		225,126		–	649,508		1,862,074		460,144		497,492
Surrenders (note 6)		(201,206	)	(318	)	–		–	(65,716	)	(42,476	)	(25,282	)	(3,873	)
Death benefits (note 4)		(528	)	(790	)	–		–	(43,208	)	–		(828	)	(1,340	)
Net policy repayments (loans) (note 5)		–		–		–		–	(10,682	)	(13,232	)	(13,326	)	(2,552	)
Deductions for surrender charges (note 2d)		–		–		–		–	(7,572	)	(5,325	)	(1,996	)	(1,273	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(14,646	)	(31,214	)	(1,542	)	–	(269,260	)	(136,202	)	(111,492	)	(66,618	)
Asset charges (note 3):
FPVUL & VEL contracts		–		–		–		–	(13,029	)	(5,923	)	(5,202	)	(2,558	)
MSP contracts		–		–		–		–	(173	)	(123	)	(201	)	(8	)
SL contracts		–		–		–		–	(623	)	(321	)	(727	)	(177	)
Adjustments to maintain reserves		35		65		45		–	11		(85	)	32		108
Net equity transactions		(393,035	)	490,341		223,627		–	961,472		2,080,039		664,232		657,159
Net change in contract owners’ equity		(303,708	)	586,871		234,541		–	1,142,021		2,262,131		766,725		760,582
Contract owners’ equity beginning of period		1,181,616		594,745		–		–	2,713,578		451,447		1,028,753		268,171
Contract owners’ equity end of period	$	877,908		1,181,616		234,541		–	3,855,599		2,713,578		1,795,478		1,028,753
CHANGES IN UNITS:
Beginning units		78,176		45,289		–		–	214,290		38,925		72,218		21,683
Units purchased		48,870		55,450		22,477		–	112,910		192,674		56,230		56,865
Units redeemed		(74,046	)	(22,563	)	(1,665	)	–	(35,804	)	(17,309	)	(10,276	)	(6,330	)
Ending units		53,000		78,176		20,812		–	291,396		214,290		118,172		72,218

(Continued)

41

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

FAMIntIndx

MLVIFLCCore2

NBAMTInt

NBAMTReg

Investment activity:

2005

2004

2005

2004

2005

2004

2005

2004

Net investment income (loss)

$

138

–

8,726

–

664

–

(162

)

–

Realized gain (loss) on investments

29

–

3,475

–

2,547

–

2,701

–

Change in unrealized gain (loss) on investments

385

–

2,790

–

32,993

–

7,430

–

Reinvested capital gains

26

–

82,926

–

3,050

–

–

–

Net increase (decrease) in contract owners’ equity resulting from operations

578

–

97,917

–

39,254

–

9,969

–

Equity transactions:

Purchase payments received from contract owners (note 6)

–

–

179,756

–

21,870

–

7,400

–

Transfers between funds

10,510

–

1,769,830

–

591,616

–

274,800

–

Surrenders (note 6)

–

–

(15,532

)

–

(1,650

)

–

(19,240

)

–

Death benefits (note 4)

–

–

–

–

–

–

–

–

Net policy repayments (loans) (note 5)

–

–

–

–

(4,560

)

–

–

–

Deductions for surrender charges (note 2d)

–

–

–

–

(476

)

–

(1,328

)

–

Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)

(48

)

–

(8,628

)

–

(11,664

)

–

(2,124

)

–

Asset charges (note 3):

FPVUL & VEL contracts

–

–

–

–

(534

)

–

(142

)

–

MSP contracts

–

–

–

–

(1

)

–

(7

)

–

SL contracts

–

–

–

–

(1

)

–

(3

)

–

Adjustments to maintain reserves

32

–

26

–

73

–

67

–

Net equity transactions

10,494

–

1,925,452

–

594,673

–

259,423

–

Net change in contract owners’ equity

11,072

–

2,023,369

–

633,927

–

269,392

–

Contract owners’ equity beginning of period

–

–

–

–

–

–

–

–

Contract owners’ equity end of period

$

11,072

–

2,023,369

–

633,927

–

269,392

–

CHANGES IN UNITS:

Beginning units

–

–

–

–

–

–

–

–

Units purchased

957

–

175,601

–

55,621

–

25,079

–

Units redeemed

(5

)

–

(767

)

–

(1,671

)

–

(1,979

)

–

Ending units

952

–

174,834

–

53,950

–

23,100

–

(Continued)

42

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	NBAMTGuard					NBAMTLMat				NBAMTMCGr				NBAMTPart
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	8,896		1,257		214,521		115,788		(24,851	)	(38,881	)	181,744		(12,962	)
Realized gain (loss) on investments		1,071,673		589,742		(63,991	)	(31,570	)	3,965,024		(143,920	)	3,223,639		557,880
Change in unrealized gain (loss) on investments		29,510		1,416,484		(61,052	)	(71,615	)	549,775		6,035,016		(223,832	)	2,294,858
Reinvested capital gains		–		–		–		–		–		–		4,592		–
Net increase (decrease) in contract owners’ equity resulting from operations		1,110,079		2,007,483		89,478		12,603		4,489,948		5,852,215		3,186,143		2,839,776
Equity transactions:
Purchase payments received from contract owners (note 6)		1,738,684		1,609,514		1,286,146		274,148		5,156,916		5,727,688		2,016,266		1,780,040
Transfers between funds		(1,115,540	)	(1,745,024	)	3,474,880		2,164,314		(5,894,314	)	(2,771,470	)	1,247,214		5,925,040
Surrenders (note 6)		(1,002,208	)	(254,328	)	(187,828	)	(77,310	)	(6,484,224	)	(1,757,193	)	(3,881,124	)	(837,024	)
Death benefits (note 4)		(52,436	)	(86,740	)	(68,168	)	–		(104,540	)	(25,890	)	(8,784	)	(37,496	)
Net policy repayments (loans) (note 5)		(88,276	)	(49,656	)	(6,508	)	(24,204	)	(277,610	)	(101,094	)	(279,760	)	52,094
Deductions for surrender charges (note 2d)		(30,876	)	(34,342	)	(8,856	)	(1,843	)	(147,180	)	(131,963	)	(88,342	)	(43,044	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(581,516	)	(647,614	)	(246,608	)	(104,620	)	(1,924,068	)	(2,134,402	)	(840,918	)	(746,454	)
Asset charges (note 3):
FPVUL & VEL contracts		(32,955	)	(31,107	)	(12,987	)	(6,232	)	(92,477	)	(84,046	)	(47,738	)	(38,362	)
MSP contracts		(962	)	(910	)	(472	)	(379	)	(1,966	)	(1,769	)	(1,654	)	(1,569	)
SL contracts		(4,015	)	(5,082	)	(2,044	)	(895	)	(13,348	)	(12,056	)	(10,122	)	(8,439	)
Adjustments to maintain reserves		100		(31,122	)	200		62		(4,370	)	14,566		830		641
Net equity transactions		(1,170,000	)	(1,276,411	)	4,227,755		2,223,041		(9,787,181	)	(1,277,629	)	(1,894,132	)	6,045,427
Net change in contract owners’ equity		(59,921	)	731,072		4,317,233		2,235,644		(5,297,233	)	4,574,586		1,292,011		8,885,203
Contract owners’ equity beginning of period		14,669,028		13,937,956		3,416,546		1,180,902		43,433,656		38,859,070		22,170,463		13,285,260
Contract owners’ equity end of period	$	14,609,107		14,669,028		7,733,779		3,416,546		38,136,423		43,433,656		23,462,474		22,170,463
CHANGES IN UNITS:
Beginning units		1,000,824		1,111,032		335,648		116,918		3,470,750		3,421,784		1,731,354		1,221,620
Units purchased		389,304		232,109		467,743		250,023		679,255		1,091,843		513,241		918,586
Units redeemed		(455,346	)	(342,317	)	(54,419	)	(31,293	)	(1,706,343	)	(1,042,877	)	(709,749	)	(408,852	)
Ending units		934,782		1,000,824		748,972		335,648		2,443,662		3,470,750		1,534,846		1,731,354

(Continued)

43

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	NBAMTSocRes					NBAMTFasc				OppAggGro				OppCapAp
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(271	)	(215	)	(3,239	)	(2,756	)	(58,472	)	(87,334	)	958,062		115,666
Realized gain (loss) on investments		34,585		2,371		135,918		33,284		8,348,656		1,101,651		578,276		(1,089,175	)
Change in unrealized gain (loss) on investments		59,578		61,525		(93,155	)	147,002		(2,182,218	)	10,016,449		4,398,023		9,875,610
Reinvested capital gains		3,326		–		7,692		5,080		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		97,218		63,681		47,216		182,610		6,107,966		11,030,766		5,934,361		8,902,101
Equity transactions:
Purchase payments received from contract owners (note 6)		313,774		129,580		471,948		262,754		8,090,218		9,824,252		21,711,790		23,669,318
Transfers between funds		727,176		320,250		(958,828	)	1,252,168		(10,107,086	)	(2,527,142	)	(16,457,702	)	4,779,426
Surrenders (note 6)		(85,330	)	(4,621	)	(309,050	)	(5,568	)	(9,951,726	)	(3,470,078	)	(19,271,526	)	(4,620,095	)
Death benefits (note 4)		–		–		(1,130	)	(766	)	(106,858	)	(94,766	)	(158,872	)	(192,026	)
Net policy repayments (loans) (note 5)		242		(2,044	)	(14,204	)	(2,002	)	(661,682	)	(478,916	)	(624,116	)	(421,134	)
Deductions for surrender charges (note 2d)		(1,526	)	(716	)	(1,752	)	(90	)	(243,372	)	(210,489	)	(319,496	)	(328,037	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(77,622	)	(40,158	)	(64,846	)	(41,206	)	(2,747,066	)	(3,142,394	)	(4,695,310	)	(5,210,128	)
Asset charges (note 3):
FPVUL & VEL contracts		(3,337	)	(1,194	)	(1,788	)	(1,073	)	(129,137	)	(120,103	)	(190,375	)	(180,963	)
MSP contracts		(91	)	(25	)	–		–		(2,946	)	(2,816	)	(5,610	)	(5,059	)
SL contracts		(893	)	(250	)	(329	)	(113	)	(13,009	)	(12,403	)	(24,477	)	(22,776	)
Adjustments to maintain reserves		2		140		(28	)	135		(3,681	)	(1,847	)	1		(8,286	)
Net equity transactions		872,395		400,962		(880,007	)	1,464,239		(15,876,345	)	(236,702	)	(20,035,693	)	17,460,240
Net change in contract owners’ equity		969,613		464,643		(832,791	)	1,646,849		(9,768,379	)	10,794,064		(14,101,332	)	26,362,341
Contract owners’ equity beginning of period		592,598		127,955		2,515,059		868,210		65,339,442		54,545,378		144,808,609		118,446,268
Contract owners’ equity end of period	$	1,562,211		592,598		1,682,268		2,515,059		55,571,063		65,339,442		130,707,277		144,808,609
CHANGES IN UNITS:
Beginning units		42,274		10,340		179,164		69,138		5,915,758		5,597,728		11,425,008		9,502,860
Units purchased		69,573		36,335		57,082		131,687		2,290,601		2,629,430		7,056,358		3,908,910
Units redeemed		(7,555	)	(4,401	)	(119,752	)	(21,661	)	(3,503,603	)	(2,311,400	)	(7,798,092	)	(1,986,762	)
Ending units		104,292		42,274		116,494		179,164		4,702,756		5,915,758		10,683,274		11,425,008

(Continued)

44

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	OppGlSec					OppHighInc				OppMSFund				OppMSSmCap
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	510,971		470,329		188,043		75,091		529,350		307,388		(1,163	)	(390	)
Realized gain (loss) on investments		5,322,204		2,722,991		(50,931	)	58,940		1,705,806		382,536		71,417		142,686
Change in unrealized gain (loss) on investments		2,527,482		6,067,450		(47,298	)	55,598		9,374		3,143,915		117,558		147,966
Reinvested capital gains		–		–		–		–		–		–		53,070		–
Net increase (decrease) in contract owners’ equity resulting from operations		8,360,657		9,260,770		89,814		189,629		2,244,530		3,833,839		240,882		290,262
Equity transactions:
Purchase payments received from contract owners (note 6)		7,081,714		6,960,044		538,178		345,332		5,707,864		6,830,182		394,638		372,804
Transfers between funds		907,058		7,910,846		431,688		1,411,694		(2,801,076	)	(5,157,620	)	495,442		337,728
Surrenders (note 6)		(7,039,230	)	(1,475,823	)	(136,760	)	(121,394	)	(3,983,586	)	(1,808,071	)	(71,788	)	(149,423	)
Death benefits (note 4)		(44,770	)	(81,242	)	(2,084	)	–		(211,410	)	(57,470	)	(2,630	)	(4,692	)
Net policy repayments (loans) (note 5)		(394,164	)	(100,632	)	(30,886	)	(21,942	)	(402,058	)	(167,212	)	(59,140	)	1,588
Deductions for surrender charges (note 2d)		(101,854	)	(102,825	)	(12,660	)	(12,864	)	(185,490	)	(162,716	)	(8,466	)	(8,483	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(2,108,658	)	(2,045,172	)	(249,062	)	(146,004	)	(2,344,784	)	(2,636,462	)	(169,816	)	(110,310	)
Asset charges (note 3):
FPVUL & VEL contracts		(87,539	)	(73,087	)	(9,638	)	(5,776	)	(123,336	)	(116,761	)	(8,403	)	(5,139	)
MSP contracts		(1,846	)	(1,519	)	(102	)	(53	)	(5,206	)	(5,220	)	(96	)	(414	)
SL contracts		(14,320	)	(12,227	)	(1,089	)	(356	)	(17,120	)	(15,873	)	(672	)	(315	)
Adjustments to maintain reserves		(735	)	432,717		48		75		(22,898	)	4,362		(6	)	129
Net equity transactions		(1,804,344	)	11,411,080		527,633		1,448,712		(4,389,100	)	(3,292,861	)	569,063		433,473
Net change in contract owners’ equity		6,556,313		20,671,850		617,447		1,638,341		(2,144,570	)	540,978		809,945		723,735
Contract owners’ equity beginning of period		60,364,875		39,693,025		3,178,502		1,540,161		42,442,770		41,901,792		1,854,512		1,130,777
Contract owners’ equity end of period	$	66,921,188		60,364,875		3,795,949		3,178,502		40,298,200		42,442,770		2,664,457		1,854,512
CHANGES IN UNITS:
Beginning units		5,430,766		4,248,465		260,866		137,738		3,750,564		4,090,438		111,964		81,527
Units purchased		2,878,688		2,366,576		74,854		147,625		1,087,846		1,008,403		56,039		65,547
Units redeemed		(3,036,140	)	(1,184,275	)	(31,224	)	(24,497	)	(1,524,666	)	(1,348,277	)	(21,657	)	(35,110	)
Ending units		5,273,314		5,430,766		304,496		260,866		3,313,744		3,750,564		146,346		111,964

(Continued)

45

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	OppGlSec3				PVITAllAsset				PIMLowDur				PIMRealRet
Investment activity:	2005			2004	2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(1,266	)	–	149,414		6,886		990,266		537,462		682,032		88,916
Realized gain (loss) on investments		65,081		–	4,077		508		(186,935	)	36,705		150,024		195,127
Change in unrealized gain (loss) on investments		764,233		–	50,480		(2,204	)	(595,391	)	11,372		(739,307	)	142,688
Reinvested capital gains		–		–	12,230		162		104,450		178,924		345,124		517,832
Net increase (decrease) in contract owners’ equity resulting from operations		828,048		–	216,201		5,352		312,390		764,463		437,873		944,563
Equity transactions:
Purchase payments received from contract owners (note 6)		2,779,566		–	240,212		(4	)	4,651,648		6,466,440		5,417,370		2,797,084
Transfers between funds		5,535,992		–	3,418,706		271,546		15,350,362		9,533,832		10,901,204		7,867,118
Surrenders (note 6)		(244,838	)	–	–		–		(28,029,434	)	(3,088,632	)	(3,182,524	)	(852,849	)
Death benefits (note 4)		(25,442	)	–	–		–		(43,444	)	(141,070	)	(41,306	)	(21,796	)
Net policy repayments (loans) (note 5)		99,806		–	–		–		(20	)	–		10		–
Deductions for surrender charges (note 2d)		(20,618	)	–	–		–		–		(98,060	)	–		(21,200	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(218,144	)	–	(37,340	)	(1,184	)	(827,922	)	(998,114	)	(521,088	)	(292,236	)
Asset charges (note 3):
FPVUL & VEL contracts		(10,565	)	–	–		–		–		–		–		–
MSP contracts		(257	)	–	–		–		–		–		–		–
SL contracts		(3,052	)	–	–		–		–		–		–		–
Adjustments to maintain reserves		286		–	5		27		(2,218	)	(4,423	)	(6,521	)	(3,936	)
Net equity transactions		7,892,734		–	3,621,583		270,385		(8,901,028	)	11,669,973		12,567,145		9,472,185
Net change in contract owners’ equity		8,720,782		–	3,837,784		275,737		(8,588,638	)	12,434,436		13,005,018		10,416,748
Contract owners’ equity beginning of period		–		–	275,737		–		47,945,937		35,511,501		18,779,899		8,363,151
Contract owners’ equity end of period	$	8,720,782		–	4,113,521		275,737		39,357,299		47,945,937		31,784,917		18,779,899
CHANGES IN UNITS:
Beginning units		–		–	24,614		–		4,539,622		3,413,680		1,538,994		744,303
Units purchased		766,045		–	365,450		25,169		3,460,367		2,874,199		2,077,818		1,162,498
Units redeemed		(42,909	)	–	(43,578	)	(555	)	(4,300,181	)	(1,748,257	)	(1,061,138	)	(367,807	)
Ending units		723,136		–	346,486		24,614		3,699,808		4,539,622		2,555,674		1,538,994

(Continued)

46

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	PIMTotRet					PVCTHiYield				PVTGroInc				PVTIntEq
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	2,469,162		953,112		499,686		647,890		15,494		5,400		23,274		13,509
Realized gain (loss) on investments		(2,913	)	225,440		(66,334	)	191,978		21,915		5,250		106,954		54,994
Change in unrealized gain (loss) on investments		(2,205,252	)	451,710		(555,063	)	12,692		20,998		71,844		97,263		144,657
Reinvested capital gains		1,411,494		1,031,052		327,788		50,706		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		1,672,491		2,661,314		206,077		903,266		58,407		82,494		227,491		213,160
Equity transactions:
Purchase payments received from contract owners (note 6)		12,384,494		10,162,492		1,262,376		1,284,216		229,886		149,342		190,056		157,048
Transfers between funds		13,111,258		14,787,330		2,312,216		(1,391,140	)	68,440		539,848		453,196		571,550
Surrenders (note 6)		(4,948,132	)	(1,849,835	)	(1,118,194	)	(202,487	)	(61,800	)	(13,683	)	(75,660	)	(18,702	)
Death benefits (note 4)		(82,760	)	(87,364	)	(16,674	)	(27,808	)	–		–		–		–
Net policy repayments (loans) (note 5)		(59,414	)	–		10		–		(7,834	)	(10,414	)	(2,638	)	(236	)
Deductions for surrender charges (note 2d)		–		(28,288	)	–		(7,654	)	(6,558	)	(1,153	)	(5,496	)	(853	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(1,316,828	)	(1,169,340	)	(155,358	)	(246,358	)	(90,674	)	(52,578	)	(72,620	)	(66,042	)
Asset charges (note 3):
FPVUL & VEL contracts		–		–		–		–		(3,647	)	(1,892	)	(3,903	)	(2,789	)
MSP contracts		–		–		–		–		(34	)	(8	)	(177	)	(144	)
SL contracts		–		–		–		–		(185	)	(56	)	(2,388	)	(480	)
Adjustments to maintain reserves		(21,486	)	(5,184	)	(73	)	5,499		26		92		25		77
Net equity transactions		19,067,132		21,809,811		2,284,303		(585,732	)	127,620		609,498		480,395		639,429
Net change in contract owners’ equity		20,739,623		24,471,125		2,490,380		317,534		186,027		691,992		707,886		852,589
Contract owners’ equity beginning of period		68,925,976		44,454,851		8,626,897		8,309,363		964,005		272,013		1,599,310		746,721
Contract owners’ equity end of period	$	89,665,599		68,925,976		11,117,277		8,626,897		1,150,032		964,005		2,307,196		1,599,310
CHANGES IN UNITS:
Beginning units		6,094,914		4,110,079		584,660		605,437		69,826		21,892		107,542		58,343
Units purchased		4,650,228		2,932,313		689,878		483,764		22,192		54,544		42,649		54,566
Units redeemed		(2,989,182	)	(947,478	)	(535,120	)	(504,541	)	(12,856	)	(6,610	)	(11,915	)	(5,367	)
Ending units		7,755,960		6,094,914		739,418		584,660		79,162		69,826		138,276		107,542

(Continued)

47

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	PVTVoyII					RCFMicroCap				TRowNewAmG				TRPBluChpGrII
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	1,751		299		96,192		(71,700	)	(22,046	)	(66	)	318		–
Realized gain (loss) on investments		7,602		1,952		667,307		1,460,029		11,876		96		3,925		–
Change in unrealized gain (loss) on investments		10,546		13,776		2,639,776		(730,678	)	642,042		4,161		9,234		–
Reinvested capital gains		–		–		593,782		1,893,810		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		19,899		16,027		3,997,057		2,551,461		631,872		4,191		13,477		–
Equity transactions:
Purchase payments received from contract owners (note 6)		105,898		114,522		4,740,150		5,455,688		1,125,026		553,966		41,398		–
Transfers between funds		9,278		111,066		6,725,044		8,683,586		10,104,458		2,066,602		333,894		–
Surrenders (note 6)		(32,990	)	(139	)	(2,695,940	)	(980,613	)	(1,324	)	–		–		–
Death benefits (note 4)		(29,824	)	(2,104	)	(17,684	)	(63,360	)	–		–		–		–
Net policy repayments (loans) (note 5)		(1,908	)	(3,574	)	(15,066	)	60,952		–		–		(8,488	)	–
Deductions for surrender charges (note 2d)		(2,940	)	(9	)	–		(31,357	)	–		–		–		–
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(41,046	)	(35,112	)	(575,576	)	(483,476	)	(104,032	)	(352	)	(5,912	)	–
Asset charges (note 3):
FPVUL & VEL contracts		(1,390	)	(913	)	–		–		–		–		(465	)	–
MSP contracts		(6	)	–		–		–		–		–		(8	)	–
SL contracts		(113	)	(88	)	–		–		–		–		(25	)	–
Adjustments to maintain reserves		24		61		233		(7,524	)	(6	)	1,374		88		–
Net equity transactions		4,983		183,710		8,161,161		12,633,896		11,124,122		2,621,590		360,482		–
Net change in contract owners’ equity		24,882		199,737		12,158,218		15,185,357		11,755,994		2,625,781		373,959		–
Contract owners’ equity beginning of period		334,468		134,731		26,739,683		11,554,326		2,625,781		–		–		–
Contract owners’ equity end of period	$	359,350		334,468		38,897,901		26,739,683		14,381,775		2,625,781		373,959		–
CHANGES IN UNITS:
Beginning units		26,864		11,366		1,568,630		769,030		242,954		–		–		–
Units purchased		9,766		19,141		1,454,511		1,170,660		1,169,650		242,989		34,381		–
Units redeemed		(9,322	)	(3,643	)	(974,581	)	(371,060	)	(134,544	)	(35	)	(1,331	)	–
Ending units		27,308		26,864		2,048,560		1,568,630		1,278,060		242,954		33,050		–

(Continued)

48

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	TRowEqInc2					TRLimTrmBnd2			TRowMidCap2				VEWrldEMkt
Investment activity:	2005			2004		2005		2004	2005		2004		2005		2004
Net investment income (loss)	$	665,219		430,246		2,024		–	(69,266	)	(81,638	)	77,634		42,391
Realized gain (loss) on investments		2,694,532		2,128,371		(13	)	–	3,166,572		1,664,781		3,049,750		1,046,565
Change in unrealized gain (loss) on investments		(4,229,484	)	2,187,744		(1,192	)	–	(1,508,118	)	3,483,713		(29,014	)	1,246,193
Reinvested capital gains		3,101,640		997,736		–		–	1,546,394		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		2,231,907		5,744,097		819		–	3,135,582		5,066,856		3,098,370		2,335,149
Equity transactions:
Purchase payments received from contract owners (note 6)		8,267,440		5,856,754		3,104		–	3,502,378		3,574,312		1,145,516		1,397,150
Transfers between funds		21,558,452		15,347,540		199,838		–	2,669,954		4,848,514		(2,645,068	)	4,094,266
Surrenders (note 6)		(11,550,652	)	(624,002	)	–		–	(13,090,592	)	(870,149	)	(1,705,926	)	(741,016	)
Death benefits (note 4)		(68,344	)	(101,604	)	–		–	(9,362	)	(78,028	)	(11,994	)	(28,574	)
Net policy repayments (loans) (note 5)		(25,616	)	101,586		–		–	–		–		(385,634	)	(110,950	)
Deductions for surrender charges (note 2d)		–		(18,144	)	–		–	–		(33,245	)	(56,880	)	(34,947	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(978,192	)	(650,674	)	(2,056	)	–	(369,676	)	(502,182	)	(530,786	)	(498,772	)
Asset charges (note 3):
FPVUL & VEL contracts		(892	)	–		(180	)	–	–		–		(34,020	)	(25,885	)
MSP contracts		(14	)	–		–		–	–		–		(480	)	(499	)
SL contracts		(129	)	–		(40	)	–	–		–		(4,100	)	(3,423	)
Adjustments to maintain reserves		(723	)	22,052		17		–	(2,989	)	364		(2,490	)	(7,567	)
Net equity transactions		17,201,330		19,933,508		200,683		–	(7,300,287	)	6,939,586		(4,231,862	)	4,039,783
Net change in contract owners’ equity		19,433,237		25,677,605		201,502		–	(4,164,705	)	12,006,442		(1,133,492	)	6,374,932
Contract owners’ equity beginning of period		49,667,989		23,990,384		–		–	32,268,277		20,261,835		14,894,146		8,519,214
Contract owners’ equity end of period	$	69,101,226		49,667,989		201,502		–	28,103,572		32,268,277		13,760,654		14,894,146
CHANGES IN UNITS:
Beginning units		3,441,590		1,900,200		–		–	1,942,056		1,435,604		954,538		738,211
Units purchased		3,455,577		2,287,540		20,121		–	813,669		1,051,136		280,840		415,455
Units redeemed		(2,269,447	)	(746,150	)	(225	)	–	(1,273,821	)	(544,684	)	(536,858	)	(199,128	)
Ending units		4,627,720		3,441,590		19,896		–	1,481,904		1,942,056		698,520		954,538

(Continued)

49

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	VEWrldHAs					VKoreFI				VKEmMkt				VKMidCapG
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	26,413		14,450		34,365		12,300		768,924		730,431		(2,536	)	(4,266	)
Realized gain (loss) on investments		2,105,837		1,115,124		760		677		103,612		492,318		612,444		520,995
Change in unrealized gain (loss) on investments		3,024,831		521,610		(4,172	)	807		211,347		(638,091	)	(107,928	)	260,318
Reinvested capital gains		–		–		7,318		778		166,324		349,082		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		5,157,081		1,651,184		38,271		14,562		1,250,207		933,740		501,980		777,047
Equity transactions:
Purchase payments received from contract owners (note 6)		1,342,472		1,142,488		163,676		62,392		1,500,046		1,323,678		798,064		619,682
Transfers between funds		4,481,862		1,737,814		733,546		372,898		1,973,702		504,330		488,932		69,430
Surrenders (note 6)		(3,026,088	)	(256,163	)	(5,126	)	(2,737	)	(738,728	)	(1,343,729	)	(1,480,310	)	(432,797	)
Death benefits (note 4)		(17,978	)	(166	)	(1,048	)	–		(7,230	)	(26,100	)	(6	)	(11,296	)
Net policy repayments (loans) (note 5)		(469,262	)	(17,776	)	3,826		(4,730	)	(237,600	)	(65,000	)	(4,384	)	(29,804	)
Deductions for surrender charges (note 2d)		(7,698	)	(14,723	)	(1,576	)	(106	)	(25,750	)	(27,754	)	(29,920	)	(9,778	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(385,080	)	(282,138	)	(69,530	)	(24,990	)	(411,882	)	(486,288	)	(165,004	)	(192,616	)
Asset charges (note 3):
FPVUL & VEL contracts		(23,737	)	(12,825	)	(3,010	)	(1,071	)	(19,780	)	(18,785	)	(9,426	)	(8,360	)
MSP contracts		(564	)	(516	)	(9	)	(10	)	(892	)	(866	)	(156	)	(135	)
SL contracts		(4,586	)	(3,295	)	(266	)	(41	)	(3,096	)	(2,496	)	(934	)	(839	)
Adjustments to maintain reserves		(1,623	)	(3,917	)	20		59		65		(19,795	)	28		290
Net equity transactions		1,887,718		2,288,783		820,503		401,664		2,028,855		(162,805	)	(403,116	)	3,777
Net change in contract owners’ equity		7,044,799		3,939,967		858,774		416,226		3,279,062		770,935		98,864		780,824
Contract owners’ equity beginning of period		9,821,409		5,881,442		543,841		127,615		10,013,347		9,242,412		4,469,099		3,688,275
Contract owners’ equity end of period	$	16,866,208		9,821,409		1,402,615		543,841		13,292,409		10,013,347		4,567,963		4,469,099
CHANGES IN UNITS:
Beginning units		656,558		495,019		50,918		12,470		582,104		594,194		616,296		618,638
Units purchased		553,270		243,756		82,630		41,826		302,206		287,526		359,927		230,285
Units redeemed		(491,164	)	(82,217	)	(7,536	)	(3,378	)	(202,038	)	(299,616	)	(439,693	)	(232,627	)
Ending units		718,664		656,558		126,012		50,918		682,272		582,104		536,530		616,296

(Continued)

50

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	VKUSRealEst					StOpp2
Investment activity:	2005			2004		2005		2004
Net investment income (loss)	$	665,982		677,509		(39,171	)	(58,999	)
Realized gain (loss) on investments		6,251,798		2,168,984		5,230,150		1,604,983
Change in unrealized gain (loss) on investments		1,277,163		11,244,483		(3,039,693	)	4,189,292
Reinvested capital gains		1,656,042		870,754		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		9,850,985		14,961,730		2,151,286		5,735,276
Equity transactions:
Purchase payments received from contract owners (note 6)		9,546,940		7,106,016		5,081,812		5,364,084
Transfers between funds		3,311,152		5,390,914		(8,191,432	)	(2,354,336	)
Surrenders (note 6)		(8,585,088	)	(2,883,199	)	(4,838,992	)	(3,743,160	)
Death benefits (note 4)		(38,984	)	(169,996	)	(19,018	)	(35,354	)
Net policy repayments (loans) (note 5)		(770,598	)	(81,516	)	(60,236	)	186,860
Deductions for surrender charges (note 2d)		(162,314	)	(153,064	)	(83,646	)	(111,528	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(2,612,016	)	(2,145,706	)	(1,149,974	)	(1,439,780	)
Asset charges (note 3):
FPVUL & VEL contracts		(118,020	)	(85,785	)	(53,858	)	(50,514	)
MSP contracts		(9,138	)	(8,685	)	(1,436	)	(1,454	)
SL contracts		(14,556	)	(10,809	)	(12,209	)	(12,877	)
Adjustments to maintain reserves		1,172		(10,031	)	(123	)	37,521
Net equity transactions		548,550		6,948,139		(9,329,112	)	(2,160,538	)
Net change in contract owners’ equity		10,399,535		21,909,869		(7,177,826	)	3,574,738
Contract owners’ equity beginning of period		60,026,387		38,116,518		37,237,824		33,663,086
Contract owners’ equity end of period	$	70,425,922		60,026,387		30,059,998		37,237,824
CHANGES IN UNITS:
Beginning units		2,693,498		2,305,407		3,328,492		3,554,641
Units purchased		1,231,087		910,758		1,435,568		1,034,598
Units redeemed		(1,215,101	)	(522,667	)	(2,278,718	)	(1,260,747	)
Ending units		2,709,484		2,693,498		2,485,342		3,328,492

See accompanying notes to financial statements.

51

NATIONWIDE VLI SEPARATE ACCOUNT–4

NOTES TO FINANCIAL STATEMENTS

December 31, 2005 and 2004

(1) Background and Summary of Significant Accounting Policies

(a) Organization and Nature of Operations

The Nationwide VLI Separate Account-4 (the Account) was established pursuant to a resolution of the Board of Directors of Nationwide Life Insurance Company (the Company) on December 3, 1997. The Account is registered as a unit investment trust under the Investment Company Act of 1940.

The Company offers Flexible Premium, Modified Single Premium, Variable Executive Life and Survivorship Life Variable Life Insurance Policies through the Account. The primary distribution for contracts is through wholesalers and brokers.

(b) The Contracts

Only contracts with a front-end sales charge, a contingent deferred sales charge and certain other fees are offered for purchase. See note 2 for a discussion of policy charges and note 3 for asset charges.

Contract owners may invest in the following:

Funds of the AIM Variable Insurance Fund (AIM VIF);

    AIM VIF – Basic Value Fund – Series I Shares (AIMBValue)

    AIM VIF – Capital Appreciation Fund – Series I Shares (AIMCapAp)

    AIM VIF – Capital Development Fund – Series I Shares (AIMCapDev)

    AIM VIF – International Growth Fund – Series I Shares (AIMIntGr)

Portfolios of the Alliance Variable Product Series Funds, Inc (Alliance VPSF);

    Alliance VPSF – AllianceBernstein Growth & Income Portfolio – Class A (AlVPGrIncA)

    Alliance VPSF – AllianceBernstein Small/Mid Cap Value Portfolio – Class A (AlVPSmCapVA)

        (formerly AllianceBernstein VPSF, Inc. – AllianceBernstein Small Cap Value Portfolio – Class A)

Portfolios of AllianceBernstein;

    AllianceBernstein Growth and Income Fund – Class A (AlGrIncA)*

Portfolios of the American Century Variable Portfolios, Inc. (American Century VP);

    American Century VP – Income & Growth Fund – Class I (ACVPIncGr)

    American Century VP – International Fund – Class I (ACVPInt)

    American Century VP – Mid Cap Value Fund – Class I (ACVPMidCpVal)

    American Century VP – Ultra^® Fund – Class I (ACVPUltra)

    American Century VP – Value Fund – Class I (ACVPVal)

    American Century VP – Vista^SM Fund – Class I (ACVPVista)

Portfolios of the American Century Variable Portfolios, Inc. (American Century VP II);

    American Century VP II – Inflation Protection Fund – Class II (ACVPInflaPro)

Portfolios of the American Century Variable Portfolios, Inc. (American Century VP III);

    American Century VP III – International Fund – Class III (ACVPInt3)

Portfolios of Baron Capital Asset Trust Insurance Series (Baron Capital Funds Trust IS);

    Baron Capital Funds Trust IS – Baron Capital Asset Fund: Insurance Shares (BCFTCpAsset)

Portfolio of the Calvert Variable Series (Calvert VS);

    Calvert VS – Social Equity Portfolio (CVSSoEq)

Portfolios of the Credit Suisse Trust (Credit Suisse Trust);

    Credit Suisse Trust – Global Small Cap Portfolio (CSGPVen)

        (formerly Credit Suisse Trust – Global Post-Venture Capital Portfolio)

    Credit Suisse Trust – International Focus Portfolio (CSIntFoc)

    Credit Suisse Trust – Large Cap Value Portfolio (CSLCapV)

(Continued)

52

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

Funds of the Dreyfus Investment Portfolios (Dreyfus IP);

    Dreyfus IP – Mid Cap Stock Portfolio – Initial Shares (DryMidCapStS)

        (formerly Dreyfus Investment Portfolios – MidCap Stock Portfolio – Service Shares)

    Dreyfus IP – Small Cap Stock Index Portfolio – Service Class (DrySmCapIxS)

Portfolios of Dreyfus Investor Inc. (Dreyfus Investor, Inc.);

    Dreyfus Investor, Inc. – Dreyfus Mid Cap Index Fund, Inc. (DryMdCpInx)*

    Dreyfus Investor, Inc. – Dreyfus Stock Index Fund, Inc. – Initial Shares (DryStkIx)

    Dreyfus Investor, Inc. – The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)

Portfolios of the Dreyfus Variable Investment Fund (Dreyfus VIF);

    Dreyfus VIF – Appreciation Portfolio – Initial Shares (DryVIFApp)

    Dreyfus VIF – Developing Leaders Portfolio – Initial Shares (DryVIFDevLd)

    Dreyfus VIF – International Value Portfolio – Initial Shares (DryVIFIntVal)

Portfolios of Federated Insurance Series (Federated IS);

    Federated IS – American Leaders Fund II – Primary Shares (FedAmLead)

    Federated IS – Capital Appreciation Fund II – Primary Shares (FedCapAp)

    Federated IS – Quality Bond Fund II – Primary Shares (FedQualBd)

Portfolios of the Fidelity^® Variable Insurance Products (Fidelity^® VIP);

    Fidelity^® VIP – Equity-Income Portfolio: Service Class (FidVIPEIS)

    Fidelity^® VIP – Growth Portfolio: Service Class (FidVIPGrS)

    Fidelity^® VIP – High Income Portfolio: Service Class (FidVIPHIS)

    Fidelity^® VIP – Overseas Portfolio: Service Class (FidVIPOvS)

    Fidelity^® VIP – Overseas Portfolio: Service Class R (FidVIPOvSR)

Portfolios of the Fidelity^® Variable Insurance Products (Fidelity^® VIP II);

    Fidelity^® VIP II – Contrafund^® Portfolio: Service Class (FidVIPConS)

    Fidelity^® VIP II – Investment Grade Bond Portfolio: Service Class (FidVIPIGBdS)

Portfolios of the Fidelity^® Variable Insurance Products (Fidelity^® VIP III);

    Fidelity^® VIP III – Growth Opportunities Portfolio: Service Class (FidVIPGrOpS)

    Fidelity^® VIP III – Mid Cap Portfolio: Service Class (FidVIPMCapS)

    Fidelity^® VIP III – Value Strategies Portfolio: Service Class (FidVIPVaIS)

Portfolios of the Fidelity^® Variable Insurance Products (Fidelity^® VIP IV);

    Fidelity^® VIP IV – Natural Resources Portfolio: Service Class 2 (FidVIPCon2)

Portfolios of the Fidelity^® Variable Insurance Products Freedom Funds (Fidelity^® VIP FF);

    Fidelity^® VIP FF – Freedom Fund 2010 Portfolio: Service Class (FidFF2010)

    Fidelity^® VIP FF – Freedom Fund 2020 Portfolio: Service Class (FidFF2020)

    Fidelity^® VIP FF – Freedom Fund 2030 Portfolio: Service Class (FidFF2030)

Funds of the Franklin Templeton Variable Insurance Products Trust (Franklin Templeton VIP);

    Franklin Templeton VIP – Franklin Rising Dividends Securities Fund – Class I (FrVIPRisDiv)

    Franklin Templeton VIP – Franklin Small Cap Value Securities Fund – Class I (FTVIPSmCpVal)

    Franklin Templeton VIP – Templeton Foreign Securities Fund – Class I (FrVIPForSec)

Funds of the Franklin Templeton Variable Insurance Products Trust (Franklin Templeton VIP II);

    Franklin Templeton VIP II – Franklin Small Cap Value Securities Fund – Class 2 (FrVIPSmCpValS)

    Franklin Templeton VIP II – Templeton Foreign Securities Fund – Class 2 (FrVIPForSec2)

Funds of the Franklin Templeton Variable Insurance Products Trust (Franklin Templeton VIP III);

    Franklin Templeton VIP III – Franklin Global Income Securities Fund – Class 3 (FrVIPGISec3)

    Franklin Templeton VIP III – Templeton Developing Markets Securities Fund –

        Class 3 (TmDevMktS3)

    Franklin Templeton VIP III – Templeton Foreign Securities Fund – Class 3 (FrVIPForSec3)

Funds of the Gartmore Variable Insurance Trust (Gartmore GVIT)

(Gartmore is an affiliate of the Company);

    Gartmore GVIT – Dreyfus International Value Fund – Class I (GVITDryIntVal)

    Gartmore GVIT – Dreyfus Mid Cap Index Fund – Class I (GVITDMidCapI)

    Gartmore GVIT – Emerging Markets Fund: Class I (GVITEmMrkts)

    Gartmore GVIT – Federated High Income Bond Fund: Class I (GVITFHiInc)

(Continued)

53

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

    Gartmore GVIT – Global Financial Services Fund: Class I (GVITGlFin1)

    Gartmore GVIT – Global Health Sciences Fund: Class I (GVITGlHlth)

    Gartmore GVIT – Global Technology and Communications Fund: Class I (GVITGlTech)

    Gartmore GVIT – Global Utilities Fund: Class I (GVITGlUtl1)

    Gartmore GVIT – Government Bond Fund: Class I (GVITGvtBd)

    Gartmore GVIT – Growth Fund – Class I (GVITGrowth)

    Gartmore GVIT – International Growth Fund: Class I (GVITIntGro)

    Gartmore GVIT – J.P. Morgan Balanced Fund – Class I (GVITJPBal)

    Gartmore GVIT – Mid Cap Growth Fund: Class I (GVITSMdCpGr)

    Gartmore GVIT – Money Market Fund – Class I (GVITMyMkt)

    Gartmore GVIT – Nationwide^® Fund: Class I (GVITNWFund)

    Gartmore GVIT – Nationwide^® Leaders Fund: Class I (GVITLead)

    Gartmore GVIT – Small Cap Growth Fund: Class I (GVITSmCapGr)

    Gartmore GVIT – Small Cap Value Fund: Class I (GVITSmCapVal)

    Gartmore GVIT – Small Company Fund: Class I (GVITSmComp)

    Gartmore GVIT – U.S. Growth Leaders Fund: Class I (GVITUSGro)

    Gartmore GVIT – Van Kampen Multi Sector Bond Fund – Class I (GVITVKMultiSec)

    Gartmore GVIT – Van Kampen Value Fund – Class I (GVITCVal)

    Gartmore GVIT – Worldwide Leaders Fund: Class I (GVITWLead)

Funds of the Gartmore Variable Insurance Trust (Gartmore GVIT III)

(Gartmore is an affiliate of the Company);

    Gartmore GVIT III – Dreyfus International Value Fund – Class III (GVITDryIntVal3)

    Gartmore GVIT III – Emerging Markets Fund: Class III (GVITEmMrkts3)

    Gartmore GVIT III – Federated High Income Bond Fund: Class III (GVITFHiInc3)

    Gartmore GVIT III – Global Health Sciences Fund: Class III (GVITGlHlth3)

    Gartmore GVIT III – Global Technology and Communications Fund: Class III (GVITGlTech3)

Funds of the Gartmore Variable Insurance Trust (Gartmore GVIT V)

(Gartmore is an affiliate of the Company);

    Gartmore GVIT V – Money Market Fund: Class V (GVITMyMkt5)

Funds of the Gartmore Variable Insurance Trust – Investor Destinations

(Gartmore GVIT ID II) (Gartmore is an affiliate of the Company);

    Gartmore GVIT ID II – Aggressive Fund – Class II (GVITIDAgg)

    Gartmore GVIT ID II – Conservative Fund – Class II (GVITIDCon)

    Gartmore GVIT ID II – Moderate Fund – Class II (GVITIDMod)

    Gartmore GVIT ID II – Moderately Aggressive Fund – Class II (GVITIDModAgg)

    Gartmore GVIT ID II – Moderately Conservative Fund – Class II (GVITIDModCon)

Portfolios of Goldman Sachs Asset Management Funds (Goldman Sachs VIT);

    Goldman Sachs VIT – Mid Cap Value Fund (GSVITMidCap)

Portfolios of the Janus Aspen Series (Janus AS);

    Janus AS – Balanced Portfolio – Service Shares (JanBal)

    Janus AS – Forty Portfolio – Service Shares (JanCapAp)

        (formerly Janus Aspen Series – Capital Appreciation Portfolio – Service Shares)

    Janus AS – Global Technology Portfolio – Service Shares (JanGlTech)

    Janus AS – International Growth Portfolio – Service Shares (JanIntGro)

    Janus AS – Risk-Managed Large Cap Core Portfolio – Service Shares (JanRMgLgCap)

Portfolios of the JPMorgan Investment Trust (JPMorgan IT);

    JPMorgan IT – Bond Portfolio (OGBond)* (formerly One Group^® Investment Trust Bond Portfolio)

    JPMorgan IT – Diversified Equity Portfolio (OGDivEq)*

        (formerly One Group^® Investment Trust Diversified Equity Portfolio)

    JPMorgan IT – Diversified Mid Cap Portfolio (OGDivMidCap)*

        (formerly One Group^® Investment Trust Diversified Mid Cap Portfolio)

    JPMorgan IT – Equity Index Portfolio (OGEqIndx)*

        (formerly One Group^® Investment Trust Equity Index Portfolio)

(Continued)

54

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

    JPMorgan IT – Government Bond Portfolio (OGGvtBd)*

        (formerly One Group^® Investment Trust Government Bond Portfolio)

    JPMorgan IT – JPMorgan Investment Trust Balanced Portfolio (OGBal)*

        (formerly One Group^® Investment Trust Balanced Portfolio)

    JPMorgan IT – Large Cap Growth Portfolio (OGLgCapGr)*

        (formerly One Group^® Investment Trust Large Cap Growth Portfolio)

    JPMorgan IT – Mid Cap Growth Portfolio (OGMidCapGr)

        (formerly One Group^® Investment Trust Mid Cap Growth Portfolio)

    JPMorgan IT – Mid Cap Value Portfolio (OGMidCapV)

        (formerly One Group^® Investment Trust Mid Cap Value Portfolio)

Funds of Lord Abbett (Lord Abbett);

    Lord Abbett Series Mid Cap Value Fund – VC (LASMdCpVaVC)

Funds of the Massachusetts Financial Services Variable Insurance Trust (MFS VIT^SM);

    MFS^® VIT^SM – MFS Investors Growth Stock Series – Initial Class (MFSVITInvGrwI)

    MFS^® VIT^SM – MFS Value Series – Initial Class (MFSVITValIn)

Funds of Merrill Lynch – FAM Variable Series Funds, Inc. (Merrill Lynch – FAM VSF II);

    Merrill Lynch – FAM VSF II – Mercury International Index Portfolio – Class II (FAMIntIndx)

Funds of Merrill Lynch (Mercury II);

    Mercury II – Large Cap Core VIF – Class II (MLVIFLCCore2)

        (formerly Merrill Lynch Variable Insurance Funds – Large Cap Core – Class II)

Portfolios of the Neuberger Berman Advisers Management Trust (Neuberger Berman AMT);

    Neuberger Berman AMT – Guardian Portfolio – I Class Shares (NBAMTGuard)

    Neuberger Berman AMT – Limited Maturity Bond Portfolio – I Class Shares (NBAMTLMat)

    Neuberger Berman AMT – Partners Portfolio^® – I Class Shares (NBAMTPart)

    Neuberger Berman AMT – Mid Cap Growth Portfolio – I Class Shares (NBAMTMCGr)

    Neuberger Berman AMT – Socially Responsive Portfolio^® – I Class Shares (NBAMTSocRes)

    Neuberger Berman AMT – International Portfolio – Class S (NBAMTInt)

    Neuberger Berman AMT – Regency Portfolio – Class S (NBAMTReg)

    Neuberger Berman AMT – Fasciano Portfolio – S Class Shares (NBAMTFasc)

Portfolios of the Oppenheimer Funds (Oppenheimer Funds);

    Oppenheimer Funds – Aggressive Growth Fund/VA – Initial Class (OppAggGro)

    Oppenheimer Funds – Capital Appreciation Fund/VA – Initial Class (OppCapAp)

    Oppenheimer Funds – Global Securities Fund/VA – Initial Class (OppGlSec)

    Oppenheimer Funds – High Income Fund/VA – Initial Class (OppHighInc)

    Oppenheimer Funds – Main Street Fund^®/VA – Initial Class (OppMSFund)

    Oppenheimer Funds – Main Street Small Cap Fund^®/VA – Initial Class (OppMSSmCap)

Portfolios of the Oppenheimer Funds (Oppenheimer Funds III);

    Oppenheimer Funds III – Global Securities Fund/VA – Class 3 (OppGlSec3)

Portfolios of PIMCO Variable Insurance Trust (PIMCO VIT);

    PIMCO VIT – All Asset Portfolio – Administrative Shares (PVITAllAsset)

    PIMCO VIT – Low Duration Portfolio – Administrative Shares (PIMLowDur)

    PIMCO VIT – Real Return Portfolio – Administrative Shares (PIMRealRet)

    PIMCO VIT – Total Return Portfolio – Administrative Shares (PIMTotRet)

Portfolio of Pioneer Variable Contracts Trust Funds (Pioneer VCT);

    Pioneer VCT – Pioneer High Yield VCT Portfolio – Class I Shares (PVCTHiYield)

Funds of the Putnam Variable Trust (Putnam VT IB);

    Putnam VT IB – Growth & Income Fund – IB Shares (PVTGroInc)

    Putnam VT IB – International Equity Fund – IB Shares (PVTIntEq)

    Putnam VT IB – Voyager II Fund – IB Shares (PVTVoyII)

Portfolios of Royce Capital Funds (Royce Capital Funds);

    Royce Capital Fund – Royce Micro-Cap Portfolio (RCFMicroCap)

(Continued)

55

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

Portfolios of T. Rowe Price Funds, Inc. (T. Rowe Price);

    T. Rowe Price – Equity Income Fund (TRPEqInc)*

    T. Rowe Price – MidCap Growth Fund (TRPMidCapGr)*

    T. Rowe Price – New America Growth Portfolio (TRowNewAmG)

Portfolios of T. Rowe Price Funds, Inc. II (T. Rowe Price II);

    T. Rowe Price II – Blue Chip Growth Portfolio – II (TRPBluChpGrII)

    T. Rowe Price II – Equity Income Portfolio – II (TRowEqInc2)

    T. Rowe Price II – Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio –

        Class II (TRLimTrmBnd2)

    T. Rowe Price II – Mid Cap Growth Fund – II (TRowMidCap2)

Funds of the Van Eck Worldwide Insurance Trust (Van Eck WIT);

    Van Eck WIT – Worldwide Emerging Markets Fund – Initial Class (VEWrldEMkt)

    Van Eck WIT – Worldwide Hard Assets Fund – Initial Class (VEWrldHAs)

Funds of Van Kampen Universal Institutional Funds, Inc. (Van Kampen UIF);

    Van Kampen UIF – Core Plus Fixed Income Portfolio – Class I (VKoreFI)

    Van Kampen UIF – Emerging Markets Debt Portfolio – Class I (VKEmMkt)

    Van Kampen UIF – Mid Cap Growth Portfolio – Class I (VKMidCapG)

    Van Kampen UIF – U.S. Real Estate Portfolio – Class I (VKUSRealEst)

Portfolios of the Waddell and Reed (W & R Target Funds, Inc.);

    W & R Target Funds, Inc. – Global Natural Resources Portfolio (WRGlNatRes)*

    W & R Target Funds, Inc. – Growth Portfolio (WRGrowth)*

    W & R Target Funds, Inc. – Mid Cap Growth Portfolio (WRMidCpGrw)*

    W & R Target Funds, Inc. – Real Estate Securities Portfolio (WRRealEstS)*

Portfolios of the Wells Fargo Advantage Variable Trust Funds^SM (Wells Fargo Advantage VTF^SM);

    Wells Fargo VTF^SM – Wells Fargo Advantage Opportunity Fund VT (StOpp2)

        (formerly Strong Variable Insurance Funds, Inc. – Strong Opportunity Fund II, Inc.)

At December 31, 2005, contract owners were invested in all of the above funds, except those noted with an asterisk (*). The contract owners’ equity is affected by the investment results of each fund, equity transactions by contract owners and certain contract expenses (see notes 2 and 3). The accompanying financial statements include only contract owners’ purchase payments pertaining to the variable portions of their contracts and exclude any purchase payments for fixed dollar benefits, the latter being included in the accounts of the Company.

A contract owner may choose from among a number of different underlying mutual fund options. The underlying mutual fund options are not available to the general public directly. The underlying mutual funds are available as investment options in variable life insurance policies or variable annuity contracts issued by life insurance companies or, in some cases, through participation in certain qualified pension or retirement plans.

A purchase payment could be presented as a negative equity transaction in the Statements of Changes in Contract Owners’ Equity if a prior period purchase payment is refunded to a contract owner due to a contract cancellation during the free look period, and/or if a gain is realized by the contract owner during the free look period.

Some of the underlying mutual funds have been established by investment advisers which manage publicly traded mutual funds having similar names and investment objectives. While some of the underlying mutual funds may be similar to, and may in fact be modeled after, publicly traded mutual funds, the underlying mutual funds are not otherwise directly related to any publicly traded mutual fund. Consequently, the investment performance of publicly traded mutual funds and any corresponding underlying mutual funds may differ substantially.

(Continued)

56

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

(c) Security Valuation, Transactions and Related Investment Income

Investments in underlying mutual funds are valued on the closing net asset value per share at December 31, 2005 of such funds, which value their investment securities at fair value. Fund purchases and sales are accounted for on the trade date (date the order to buy or sell is executed). The cost of investments sold is determined on a specific identification basis, and dividends (which include capital gain distributions) are accrued as of the ex-dividend date and are reinvested in the underlying mutual funds.

(d) Federal Income Taxes

Operations of the Account form a part of, and are taxed with, operations of the Company, which is taxed as a life insurance company under the provisions of the Internal Revenue Code.

The Company does not provide for income taxes within the Account. Taxes are the responsibility of the contract owner upon termination or withdrawal.

(e) Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with U.S generally accepted accounting principles may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, if any, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

(2) Policy Charges

(a) Deductions from Premium

For individual flexible premium and survivorship contracts, the Company deducts a minimum of 0.5% to a maximum of 7.5% of all premiums received to cover premium tax and sales expense. The Company may, at its sole discretion, reduce the sales loading portion of the premium load.

There are no deductions from premium on modified single premium contracts.

For the Corporate Series, the Company deducts a front-end sales load of 9.0% (5.5% starting in the seventh policy year) from each premium payment received. The Company may reduce this charge where the size or nature of the group results in savings in sales, underwriting, or administrative costs. Variations due to differences in costs are determined in a manner not unfairly discriminatory to policy owners.

For the periods ended December 31, 2005 and 2004, total front-end sales charge deductions were $38,078,931 and $39,284,717, respectively.

(b) Cost of Insurance

A cost of insurance charge is assessed monthly against each contract. The amount of the charge varies widely and is based upon age, sex, rate class and net amount at risk (death benefit less total contract value). This charge is assessed against each contract by liquidating units.

(c) Administrative Charges

For individual flexible premium survivorship and modified single premium contracts, the Company currently deducts a minimum monthly administration charge of $5 per policy month to a maximum of $10 per policy month to recover policy maintenance, accounting, record keeping and other administrative expenses. These charges are assessed monthly against each contract by liquidating units.

For Protection^SM flexible premium contracts, the Company deducts a policy expense per $1,000 of specified amount charge for the first two policy years. This charge varies with the age of the insured and will not exceed $0.30 per $1,000 of specified amount. For last survivor contracts, the Company deducts a per $1,000 of specified amount charge for the first 3 policy years. This charge varies with the age of the insured and will not exceed $0.40 per $1,000 of specified amount. These charges are assessed monthly against each contract by liquidating units.

For the Corporate Series, the Company deducts a monthly administrative expense charge to recover policy maintenance, accounting, record keeping and other administrative expenses. These charges are assessed against each contract by liquidating units. Currently, this charge is $5 per month in all policy years (guaranteed not to exceed $10 per month).

(Continued)

57

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

(d) Surrender Charges

Policy surrenders result in a redemption of the contract value from the Account and payment of the surrender proceeds to the contract owner or designee. The surrender proceeds consist of the contract value, less any outstanding policy loans, and less a surrender charge, if applicable. The amount of the charge is based upon a specified percentage of the initial surrender charge which varies by issue age, sex and rate class. For flexible premium survivorship, modified single premium and corporate contracts, the charge is 100% of the initial surrender charge in the first year, and declines a specified amount each year to 0% of the initial surrender charge in the ninth year or later.

The Company may waive the surrender charge for certain contracts in which the sales expenses normally associated with the distribution of a contract are not incurred. No charges were deducted from the initial funding by the Depositor, or from earnings thereon.

(3) Asset Charges

(a) Modified Single Premium Contracts (MSP)

For modified single premium contracts, the Company deducts a mortality and expense risk charge equal to an annualized rate of 0.70% of the cash value of the sub-accounts. This charge is assessed monthly against each contract by liquidating units.

(b) Flexible Premium and Variable Executive Life Contracts (SPVUL and VEL)

For Choice Life^SM contracts, the Company deducts a mortality and expense risk charge of $0.50 per $1,000 on the first $25,000 of cash value attributable to the variable account, $0.25 per $1,000 on $25,001 up to $250,000 of cash value attributable to the variable account and $0.08 per $1,000 over $250,000 of cash value attributable to the variable account. This charge is assessed monthly against each contract by liquidating units.

For Choice Life Protection^SM contracts and Best of America^® Protection^SM contracts, the Company deducts $0.66 per $1,000 of cash value attributable to the variable account during the first through fifteenth years from the Policy Date. Thereafter, this charge is $0.25 per $1,000 of cash value attributable to the variable account. This charge is assessed monthly against each contract by liquidating units.

(c) Survivorship Life Contracts (SL)

For Choice Survivorship and Last Survivor contracts, during the first ten policy years, the Company deducts a mortality and expense risk charge of $0.55 per $1,000 on the first $25,000 of cash value attributable to the variable account; $0.55 per $1,000 on $25,001 up to $99,999 of cash value attributable to the variable account; and $0.55 per $1,000 on $100,000 or more of cash value attributable to the variable account. After ten years from the Policy Date, the Company deducts $0.55 per $1,000 on the first $25,000 of cash value attributable to the variable account; $0.35 per $1,000 on $25,001 up to $99,999 of cash value attributable to the variable account; and $0.20 per $1,000 on $100,000 or more of cash value attributable to the variable account. This charge is assessed monthly against each contract by liquidating units.

For ChoiceLife^SM Survivorship II and Next Generation^SM Survivorship Life contracts, during the first fifteen policy years, the Company deducts a mortality and expense risk charge of $0.60 per $1,000 on the first $25,000 of cash value attributable to the variable account; $0.30 per $1,000 on $25,001 up to $250,000 of cash value attributable to the variable account; and $0.10 per $1,000 over $250,000 of cash value attributable to the variable account. After fifteen years from the Policy Date, the Company deducts $0.60 per $1,000 on the first $25,000 of cash value attributable to the variable account and $0.10 per $1,000 over $25,000 of cash value attributable to the variable account. This charge is assessed monthly against each contract by liquidating units.

For Protection^SM Survivorship and ChoiceLife Protection^SM Survivorship Life contracts, during the first fifteen policy years, the Company deducts a mortality and expense risk charge of $0.80 per $1,000 of cash value attributable to the variable account. After fifteen years from the Policy Date, the Company deducts $0.30 per $1,000 of cash value attributable to the variable account. This charge is assessed monthly against each contract by liquidating units.

(Continued)

58

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

(d) Corporate Contracts

For the Corporate Series, the Company deducts from the assets of the Account, a charge to provide for mortality and expense risks. This charge is guaranteed not to exceed an annualized rate of 0.75% of the daily net assets of the Account. Currently, this rate is 0.40% during the first through fourth policy years, 0.25% during the fifth through twentieth policy years, and 0.10% thereafter. A reduced fee tier for Corporate Series contracts applies as 0.20% for all policy years. This charge is assessed through the daily unit value calculation.

The Company may reduce or eliminate certain charges where the size or nature of the group results in savings in sales, underwriting, administrative or other costs to the Company. These charges may be reduced in certain group sponsored arrangements or special exchange programs made available by the Company.

(4) Death Benefits

Death benefit proceeds result in a redemption of the contract value from the Account and payment of those proceeds, less any outstanding policy loans (and policy charges), to the legal beneficiary. For last survivor flexible premium contracts, the proceeds are payable on the death of the last surviving insured. In the event that the guaranteed death benefit exceeds the contract value on the date of death, the excess is paid by the Company’s general account.

(5) Policy Loans (Net of Repayments)

Contract provisions allow contract owners to borrow 90% of a policy’s variable cash surrender value plus 100% of a policy’s fixed cash surrender value less applicable value of surrender charge. Interest is charged on the outstanding loan and is due and payable in advance on the policy anniversary.

At the time the loan is granted, the amount of the loan is transferred from the Account to the Company’s general account as collateral for the outstanding loan. Collateral amounts in the general account are credited with the stated rate of interest in effect at the time the loan is made, subject to a guaranteed minimum rate. Interest credited is paid by the Company’s general account to the Account. Loan repayments result in a transfer of collateral including interest back to the Account.

(6) Related Party Transactions

The Company performs various services on behalf of the Mutual Fund Companies in which the Account invests and may receive fees for the services performed. These services include, among other things, shareholder communications, preparation, postage, fund transfer agency and various other record keeping and customer service functions. These fees are paid to an affiliate of the Company.

Contract owners may, with certain restrictions, transfer their assets between the Account and a fixed dollar contract (fixed account) maintained in the accounts of the Company. These transfers are the result of the contract owner executing fund exchanges. Fund exchanges from the Account to the fixed account are included in surrenders, and fund exchanges from the fixed account to the Account are included in purchase payments received from contact owners, as applicable, on the accompanying Statements of Change in Contract Owners’ Equity.

Policy loan transactions (note 5), executed at the direction of the contract owner, also result in transfers between the Account and the fixed account of the Company. The fixed account assets are not reflected in the accompanying financial statements.

For the periods ended December 31, 2005 and 2004, total transfers into the Account from the fixed account were $33,113,861 and $46,330,959, respectively, and total transfers from the Account to the fixed account were $55,474,580 and $52,265,691, respectively.

(Continued)

59

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

(7) Financial Highlights

The following is a summary of units, unit fair values and contract owners’ equity outstanding for variable life and annuity contracts as of the end of the periods indicated, and the contract expense rates, investment income ratio and total return for each period in the five year period ended December 31, 2005.

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
The BEST of AMERICA® America’s FUTURE Life SeriesSM
AIM VIF – Basic Value Fund – Series I Shares
2005	0.00%	300,432	$	15.460790	$	4,644,916	0.09%	5.74%
2004	0.00%	218,854		14.622048		3,200,094	0.00%	11.07%
2003	0.00%	62,247		13.164786		819,468	0.06%	33.63%
AIM VIF – Capital Appreciation Fund – Series I Shares
2005	0.00%	85,976		14.382523		1,236,552	0.08%	8.84%
2004	0.00%	57,596		13.214909		761,126	0.00%	6.63%
2003	0.00%	26,916		12.393708		333,589	0.00%	23.94%	05/01/03
AIM VIF – Capital Development Fund – Series I Shares
2005	0.00%	164,886		16.830569		2,775,125	0.00%	9.60%
2004	0.00%	122,266		15.355666		1,877,476	0.00%	15.50%
2003	0.00%	33,912		13.294993		450,860	0.00%	35.36%
Alliance VPSF – AllianceBernstein Growth & Income Portfolio – Class A
2005	0.00%	247,326		15.525074		3,839,754	1.48%	4.87%
2004	0.00%	243,956		14.804614		3,611,674	0.92%	11.46%
2003	0.00%	145,925		13.282209		1,938,206	0.51%	32.50%
Alliance VPSF – AllianceBernstein Small/Mid Cap Value Portfolio – Class A
2005	0.00%	198,030		17.597332		3,484,800	0.74%	6.91%
2004	0.00%	181,154		16.459431		2,981,692	0.13%	19.30%
2003	0.00%	28,635		13.796395		395,060	0.13%	37.96%	05/01/03
American Century VP – Income & Growth Fund – Class I
2005	0.00%	1,496,010		15.123633		22,625,106	1.94%	4.63%
2004	0.00%	1,546,166		14.454301		22,348,749	1.37%	12.99%
2003	0.00%	1,520,999		12.792293		19,457,065	1.28%	29.35%
2002	0.00%	1,357,662		9.889493		13,426,589	1.00%	-19.37%
2001	0.00%	1,161,596		12.265301		14,247,325	0.85%	-8.35%
American Century VP – International Fund – Class I
2005	0.00%	1,314,688		14.809535		19,469,918	1.25%	13.25%
2004	0.00%	1,713,168		13.076396		22,402,063	0.56%	14.92%
2003	0.00%	1,660,633		11.378318		18,895,210	0.73%	24.51%
2002	0.00%	1,633,924		9.138486		14,931,592	0.78%	-20.37%
2001	0.00%	1,473,365		11.476396		16,908,920	0.08%	-29.17%
American Century VP – Mid Cap Value Fund – Class I
2005	0.00%	57,178		11.322176		647,379	1.24%	13.22%	05/02/05
American Century VP – Ultra® Fund – Class I
2005	0.00%	263,874		11.352287		2,995,573	0.00%	2.17%
2004	0.00%	229,742		11.111676		2,552,819	0.00%	10.68%
2003	0.00%	208,689		10.039885		2,095,214	0.00%	24.90%
2002	0.00%	75,002		8.038471		602,901	0.66%	-19.62%	05/01/02
American Century VP – Value Fund – Class I
2005	0.00%	2,800,196		18.743947		52,486,725	0.83%	5.03%
2004	0.00%	2,668,438		17.845717		47,620,189	0.97%	14.33%
2003	0.00%	2,467,117		15.608555		38,508,131	1.04%	28.96%
2002	0.00%	2,232,546		12.103586		27,021,813	0.75%	-12.62%
2001	0.00%	1,382,368		13.851627		19,148,046	0.60%	12.82%
American Century VP – VistaSM Fund – Class I
2005	0.00%	7,434		11.463606		85,220	0.00%	14.64%	05/02/05
American Century VP II – Inflation Protection Fund – Class II
2005	0.00%	535,932		11.094803		5,946,060	4.48%	1.56%
2004	0.00%	457,932		10.924094		5,002,492	3.35%	5.81%
2003	0.00%	108,990		10.324182		1,125,233	1.85%	3.24%	04/30/03

(Continued)

60

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
American Century VP III – International Fund – Class III
2005	0.00%	366,150	$	11.673757	$	4,274,346	0.00%	16.74%	05/02/05
Credit Suisse Trust – Global Small Cap Portfolio
2005	0.00%	48,980		13.421675		657,394	0.00%	16.14%
2004	0.00%	54,638		11.556117		631,403	0.00%	17.99%
2003	0.00%	58,125		9.794203		569,288	0.00%	47.66%
2002	0.00%	56,373		6.633112		373,928	0.00%	-34.16%
2001	0.00%	67,655		10.074042		681,559	0.00%	-28.63%
Credit Suisse Trust – International Focus Portfolio
2005	0.00%	132,046		13.373190		1,765,876	0.88%	17.44%
2004	0.00%	141,708		11.387391		1,613,684	0.99%	14.74%
2003	0.00%	152,971		9.924331		1,518,135	0.49%	33.09%
2002	0.00%	158,237		7.456827		1,179,946	0.00%	-19.90%
2001	0.00%	166,542		9.309878		1,550,486	0.00%	-22.27%
Credit Suisse Trust – Large Cap Value Portfolio
2005	0.00%	117,378		15.179777		1,781,772	0.73%	8.14%
2004	0.00%	114,260		14.036771		1,603,841	0.58%	11.34%
2003	0.00%	114,258		12.606777		1,440,425	0.76%	25.16%
2002	0.00%	109,088		10.072243		1,098,761	0.76%	-23.09%
2001	0.00%	118,843		13.096944		1,556,480	0.00%	0.95%
Dreyfus IP – European Equity Portfolio
2002	0.00%	282		7.045961		1,987	0.00%	-22.64%
2001	0.00%	103,773		9.107778		945,141	0.79%	-28.13%
Dreyfus IP – Small Cap Stock Index Portfolio – Service Class
2005	0.00%	581,680		13.821296		8,039,571	0.00%	7.23%
2004	0.00%	589,810		12.889095		7,602,117	0.57%	21.88%
2003	0.00%	440,723		10.574853		4,660,581	0.27%	37.78%
2002	0.00%	142,420		7.675242		1,093,108	0.29%	-23.25%	05/01/02
Dreyfus Investor, Inc. – Dreyfus Stock Index Fund, Inc. – Initial Shares
2005	0.00%	12,914,370		14.220511		183,648,941	1.63%	4.69%
2004	0.00%	13,432,296		13.583304		182,454,960	1.82%	10.64%
2003	0.00%	12,939,837		12.277012		158,862,534	1.54%	28.36%
2002	0.00%	11,929,984		9.564281		114,101,719	1.45%	-22.36%
2001	0.00%	8,587,826		12.319059		105,793,935	1.14%	-12.18%
Dreyfus Investor, Inc. – The Dreyfus Socially Responsible Growth Fund, Inc.
2005	0.00%	1,203,742		11.422458		13,749,692	0.00%	3.62%
2004	0.00%	1,320,272		11.023895		14,554,540	0.40%	6.21%
2003	0.00%	1,330,170		10.379305		13,806,240	0.11%	26.00%
2002	0.00%	1,313,324		8.237365		10,818,329	0.22%	-28.94%
2001	0.00%	1,235,879		11.592909		14,327,433	0.08%	-22.57%
Dreyfus VIF – Appreciation Portfolio – Initial Shares
2005	0.00%	1,326,026		14.469157		19,186,478	0.02%	4.38%
2004	0.00%	1,281,098		13.862320		17,758,990	1.67%	5.05%
2003	0.00%	1,185,642		13.196450		15,646,265	1.18%	21.17%
2002	0.00%	1,148,080		10.890932		12,503,661	1.22%	-16.71%
2001	0.00%	978,777		13.076512		12,798,989	0.90%	-9.31%
Dreyfus VIF – Developing Leaders Portfolio – Initial Shares
2005	0.00%	58,416		15.197076		887,752	0.00%	5.80%
2004	0.00%	63,226		14.363942		908,175	0.28%	11.34%
2003	0.00%	15,972		12.900917		206,053	0.11%	29.01%	05/01/03
Federated IS – American Leaders Fund II – Primary Shares
2005	0.00%	21,684		14.525597		314,973	1.48%	5.02%
2004	0.00%	22,444		13.830995		310,423	1.17%	9.78%
2003	0.00%	12,199		12.598945		153,695	0.00%	25.99%	05/01/03
Federated IS – Capital Appreciation Fund II – Primary Shares
2005	0.00%	26,192		13.192087		345,527	1.04%	1.91%
2004	0.00%	28,136		12.944293		364,201	0.42%	7.39%
2003	0.00%	8,379		12.052976		100,992	0.00%	20.53%	05/01/03

(Continued)

61

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Federated IS – Quality Bond Fund II – Primary Shares
2005	0.00%	2,483,218	$	14.136175	$	35,103,204	3.55%	1.30%
2004	0.00%	2,361,192		13.955112		32,950,699	3.92%	3.62%
2003	0.00%	2,262,363		13.467590		30,468,577	3.30%	4.65%
2002	0.00%	2,274,059		12.869670		29,266,389	3.20%	9.31%
2001	0.00%	1,119,384		11.773915		13,179,532	2.92%	8.01%
Fidelity® VIP – Equity-Income Portfolio: Service Class
2005	0.00%	3,799,536		15.511120		58,935,059	1.56%	5.76%
2004	0.00%	3,986,154		14.666699		58,463,721	1.39%	11.38%
2003	0.00%	3,691,492		13.167905		48,609,216	1.66%	30.22%
2002	0.00%	3,282,138		10.112108		33,189,334	1.50%	-17.00%
2001	0.00%	2,522,098		12.182836		30,726,306	1.13%	-5.09%
Fidelity® VIP – Growth Portfolio: Service Class
2005	0.00%	4,330,880		14.159785		61,324,330	0.41%	5.67%
2004	0.00%	4,602,660		13.399667		61,674,111	0.16%	3.26%
2003	0.00%	4,622,588		12.976175		59,983,511	0.18%	32.78%
2002	0.00%	4,393,697		9.772625		42,937,953	0.14%	-30.20%
2001	0.00%	3,993,015		14.000586		55,904,550	0.00%	-17.73%
Fidelity® VIP – High Income Portfolio: Service Class
2005	0.00%	1,308,856		10.398866		13,610,618	14.70%	2.52%
2004	0.00%	1,366,190		10.142968		13,857,221	8.03%	9.47%
2003	0.00%	1,549,745		9.265750		14,359,550	6.36%	26.97%
2002	0.00%	1,244,727		7.297581		9,083,496	9.18%	3.62%
2001	0.00%	1,007,961		7.042763		7,098,830	13.22%	-11.90%
Fidelity® VIP – Overseas Portfolio: Service Class
2005	0.00%	1,411,140		15.731142		22,198,844	0.56%	18.97%
2004	0.00%	1,749,970		13.222678		23,139,290	0.98%	13.49%
2003	0.00%	1,414,346		11.651219		16,478,855	0.63%	43.20%
2002	0.00%	1,180,783		8.136116		9,606,987	0.64%	-20.34%
2001	0.00%	903,417		10.213884		9,227,396	5.46%	-21.27%
Fidelity® VIP – Overseas Portfolio: Service Class R
2005	0.00%	579,174		12.499996		7,239,673	0.00%	25.00%	05/02/05
Fidelity® VIP II – Contrafund® Portfolio: Service Class
2005	0.00%	4,501,900		20.662750		93,021,634	0.19%	16.85%
2004	0.00%	4,151,040		17.683622		73,405,422	0.24%	15.34%
2003	0.00%	3,745,714		15.331836		57,428,673	0.30%	28.35%
2002	0.00%	3,355,920		11.945132		40,086,907	0.69%	-9.42%
2001	0.00%	2,969,205		13.187991		39,157,849	0.61%	-12.36%
Fidelity® VIP II – Investment Grade Bond Portfolio: Service Class
2005	0.00%	649,570		10.880732		7,067,797	2.69%	2.08%
2004	0.00%	352,046		10.659014		3,752,463	1.68%	4.32%
2003	0.00%	67,767		10.217718		692,424	0.00%	2.18%	05/01/03
Fidelity® VIP III – Growth Opportunities Portfolio: Service Class
2005	0.00%	1,129,706		10.846338		12,253,173	0.84%	8.86%
2004	0.00%	1,211,402		9.963454		12,069,748	0.48%	7.06%
2003	0.00%	1,245,460		9.306474		11,590,841	0.59%	29.66%
2002	0.00%	1,183,841		7.177547		8,497,074	0.93%	-21.92%
2001	0.00%	1,134,917		9.192068		10,432,234	0.23%	-14.44%
Fidelity® VIP III – Mid Cap Portfolio: Service Class
2005	0.00%	868,756		20.773676		18,047,256	0.00%	18.20%
2004	0.00%	431,128		17.574515		7,576,866	0.00%	24.77%
2003	0.00%	99,682		14.085331		1,404,054	0.00%	40.85%	05/01/03
Fidelity® VIP III – Value Strategies Portfolio: Service Class
2005	0.00%	510,536		13.851491		7,071,685	0.00%	2.55%
2004	0.00%	337,180		13.506506		4,554,124	0.00%	13.99%
2003	0.00%	284,603		11.849148		3,372,303	0.00%	57.79%
2002	0.00%	19,541		7.509507		146,743	0.00%	-24.90%	05/01/02
Fidelity® VIP IV – Natural Resources Portfolio: Service Class 2
2005	0.00%	243,526		13.514321		3,291,089	0.64%	35.14%	05/02/05

(Continued)

62

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Fidelity® VIP FF – Freedom Fund 2010 Portfolio: Service Class
2005	0.00%	15,242	$	10.806063	$	164,706	0.47%	8.06%	05/02/05
Fidelity® VIP FF – Freedom Fund 2020 Portfolio: Service Class
2005	0.00%	52,700		11.118664		585,954	1.32%	11.19%	05/02/05
Fidelity® VIP FF – Freedom Fund 2030 Portfolio: Service Class
2005	0.00%	23,432		11.329788		265,480	1.38%	13.30%	05/02/05
Franklin Templeton VIP – Franklin Rising Dividends Securities Fund – Class I
2005	0.00%	840,480		14.195085		11,930,685	1.01%	3.68%
2004	0.00%	635,954		13.690957		8,706,819	0.70%	11.25%
2003	0.00%	220,019		12.306508		2,707,666	0.48%	23.07%	05/01/03
Franklin Templeton VIP – Franklin Small Cap Value Securities Fund – Class I
2005	0.00%	398,540		18.064784		7,199,539	0.92%	8.99%
2004	0.00%	237,384		16.575156		3,934,677	0.23%	24.09%
2003	0.00%	47,449		13.357313		633,791	0.00%	33.57%	05/01/03
Franklin Templeton VIP – Templeton Foreign Securities Fund – Class I
2005	0.00%	228,680		17.425708		3,984,911	1.53%	10.48%
2004	0.00%	261,568		15.773327		4,125,798	1.08%	18.87%
2003	0.00%	92,411		13.269107		1,226,211	0.42%	32.69%
Franklin Templeton VIP III – Franklin Global Income Securities Fund – Class 3
2005	0.00%	53,324		9.881172		526,904	1.81%	-1.19%	05/02/05
Franklin Templeton VIP III – Templeton Developing Markets Securities Fund – Class 3
2005	0.00%	159,292		12.804274		2,039,618	0.06%	28.04%	05/02/05
Franklin Templeton VIP III – Templeton Foreign Securities Fund – Class 3
2005	0.00%	237,992		11.288544		2,686,583	0.34%	12.89%	05/02/05
Gartmore GVIT – Dreyfus International Value Fund – Class I
2005	0.00%	175,520		18.800450		3,299,855	1.31%	12.09%
2004	0.00%	281,276		16.772215		4,717,622	1.91%	20.29%
2003	0.00%	23,901		13.838062		330,744	0.00%	38.38%	05/01/03
Gartmore GVIT – Dreyfus Mid Cap Index Fund – Class I
2005	0.00%	1,705,870		22.541352		38,452,616	1.04%	12.10%
2004	0.00%	1,662,184		20.108596		33,424,187	0.56%	15.73%
2003	0.00%	1,562,296		17.375180		27,145,174	0.50%	34.65%
2002	0.00%	1,255,638		12.903917		16,202,649	0.45%	-15.30%
2001	0.00%	707,320		15.235372		10,776,283	0.55%	-1.30%
Gartmore GVIT – Emerging Markets Fund: Class I
2005	0.00%	369,062		18.534273		6,840,296	0.60%	32.64%
2004	0.00%	466,980		13.973799		6,525,485	1.04%	20.74%
2003	0.00%	343,512		11.573140		3,975,512	0.61%	65.26%
2002	0.00%	146,740		7.002885		1,027,603	0.23%	-15.23%
2001	0.00%	118,171		8.260926		976,202	0.24%	-5.18%
Gartmore GVIT – Federated High Income Bond Fund: Class I
2005	0.00%	1,047,212		14.846585		15,547,522	6.92%	2.38%
2004	0.00%	1,351,330		14.501407		19,596,186	7.58%	10.10%
2003	0.00%	1,164,352		13.171585		15,336,361	7.99%	22.27%
2002	0.00%	660,476		10.772444		7,114,941	10.09%	3.23%
2001	0.00%	335,319		10.435872		3,499,346	11.31%	4.22%
Gartmore GVIT – Global Financial Services Fund: Class I
2005	0.00%	105,354		16.481268		1,736,368	2.00%	11.15%
2004	0.00%	121,742		14.827817		1,805,168	1.37%	20.99%
2003	0.00%	137,222		12.255125		1,681,673	1.08%	41.45%
2002	0.00%	14,069		8.663891		121,892	0.02%	-13.36%	05/01/02
Gartmore GVIT – Global Health Sciences Fund: Class I
2005	0.00%	194,488		13.334230		2,593,348	0.00%	8.44%
2004	0.00%	256,666		12.296466		3,156,085	0.00%	7.86%
2003	0.00%	170,154		11.400451		1,939,832	0.00%	36.69%
2002	0.00%	24,643		8.340128		205,526	0.00%	-16.60%	05/01/02

(Continued)

63

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Gartmore GVIT – Global Technology and Communications Fund: Class I
2005	0.00%	740,614	$	3.177040	$	2,352,960	0.00%	-0.52%
2004	0.00%	1,025,772		3.193545		3,275,849	0.00%	4.31%
2003	0.00%	1,041,511		3.061527		3,188,614	0.00%	55.23%
2002	0.00%	469,967		1.972253		926,894	0.67%	-42.78%
2001	0.00%	287,368		3.446837		990,511	0.00%	-42.72%
Gartmore GVIT – Global Utilities Fund: Class I
2005	0.00%	118,088		14.894755		1,758,892	2.09%	6.39%
2004	0.00%	134,138		14.000446		1,877,992	1.64%	29.97%
2003	0.00%	50,633		10.772327		545,435	1.02%	24.05%
2002	0.00%	8,397		8.683837		72,918	0.61%	-13.16%	05/01/02
Gartmore GVIT – Government Bond Fund: Class I
2005	0.00%	3,195,842		15.495567		49,521,384	3.71%	3.26%
2004	0.00%	3,187,198		15.005858		47,826,641	5.38%	3.26%
2003	0.00%	3,340,824		14.531815		48,548,236	3.25%	2.00%
2002	0.00%	3,339,535		14.246814		47,577,734	4.66%	10.98%
2001	0.00%	1,748,673		12.836894		22,447,530	5.61%	7.25%
Gartmore GVIT – Growth Fund – Class I
2005	0.00%	1,986,938		7.798327		15,494,792	0.08%	6.50%
2004	0.00%	2,009,968		7.322345		14,717,679	0.34%	8.16%
2003	0.00%	2,002,653		6.770126		13,558,213	0.02%	32.74%
2002	0.00%	1,934,729		5.100354		9,867,803	0.00%	-28.72%
2001	0.00%	1,791,588		7.155414		12,819,554	0.00%	-28.13%
Gartmore GVIT – International Growth Fund: Class I
2005	0.00%	203,318		10.100861		2,053,687	1.10%	30.21%
2004	0.00%	125,904		7.757434		976,692	0.85%	14.19%
2003	0.00%	195,693		6.793220		1,329,386	0.00%	35.62%
2002	0.00%	72,938		5.008923		365,341	0.00%	-24.10%
2001	0.00%	26,572		6.599732		175,368	0.26%	-28.65%
Gartmore GVIT – J.P. Morgan Balanced Fund – Class I
2005	0.00%	1,170,652		12.086643		14,149,253	1.98%	2.54%
2004	0.00%	1,256,734		11.786975		14,813,092	1.94%	8.49%
2003	0.00%	1,222,571		10.864458		13,282,571	1.76%	18.41%
2002	0.00%	1,025,461		9.174983		9,408,587	2.28%	-12.31%
2001	0.00%	730,655		10.463220		7,645,004	2.54%	-3.67%
Gartmore GVIT – Mid Cap Growth Fund: Class I
2005	0.00%	989,192		13.949172		13,798,409	0.00%	9.74%
2004	0.00%	1,022,504		12.710961		12,997,008	0.00%	15.34%
2003	0.00%	1,048,110		11.020618		11,550,820	0.00%	40.13%
2002	0.00%	863,328		7.864311		6,789,480	0.00%	-37.01%
2001	0.00%	781,507		12.485925		9,757,838	0.00%	-30.31%
Gartmore GVIT – Money Market Fund – Class I
2005	0.00%	8,487,334		12.780436		108,471,829	2.61%	2.67%
2004	0.00%	9,274,680		12.448310		115,454,092	0.80%	0.81%
2003	0.00%	10,900,245		12.348118		134,597,511	0.63%	0.63%
2002	0.00%	13,460,393		12.271344		165,177,113	1.51%	1.21%
2001	0.00%	11,115,360		12.124461		134,767,749	3.18%	3.60%
Gartmore GVIT – Nationwide® Fund: Class I
2005	0.00%	3,161,412		13.543467		42,816,479	1.00%	7.44%
2004	0.00%	3,312,776		12.605461		41,759,069	1.30%	9.75%
2003	0.00%	3,352,137		11.485510		38,501,003	0.59%	27.51%
2002	0.00%	3,234,937		9.007395		29,138,355	0.95%	-17.35%
2001	0.00%	3,002,565		10.898647		32,723,896	0.88%	-11.82%
Gartmore GVIT – Nationwide® Leaders Fund: Class I
2005	0.00%	40,072		13.887943		556,518	1.29%	10.31%
2004	0.00%	24,720		12.589767		311,219	0.48%	18.79%
2003	0.00%	21,594		10.598061		228,855	0.15%	25.38%
2002	0.00%	15,191		8.452459		128,401	1.19%	-15.48%	05/01/02

(Continued)

64

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Gartmore GVIT – Nationwide® Strategic Value Fund – Class I
2003	0.00%	99,848	$	10.495857	$	1,047,990	0.04%	38.81%
2002	0.00%	103,027		7.561458		779,034	0.03%	-25.36%
2001	0.00%	124,500		10.130359		1,261,230	0.53%	-3.26%
Gartmore GVIT – Small Cap Growth Fund: Class I
2005	0.00%	925,228		16.826475		15,568,326	0.00%	8.09%
2004	0.00%	936,378		15.567128		14,576,716	0.00%	13.42%
2003	0.00%	890,100		13.725736		12,217,278	0.00%	34.26%
2002	0.00%	741,006		10.222874		7,575,211	0.00%	-33.29%
2001	0.00%	479,685		15.323736		7,350,566	0.00%	-10.84%
Gartmore GVIT – Small Cap Value Fund: Class I
2005	0.00%	1,914,388		24.416176		46,742,034	0.07%	3.07%
2004	0.00%	2,111,792		23.688343		50,024,853	0.00%	17.30%
2003	0.00%	2,161,994		20.194975		43,661,415	0.00%	56.85%
2002	0.00%	1,878,685		12.875081		24,188,222	0.01%	-27.16%
2001	0.00%	1,567,879		17.676405		27,714,464	0.04%	28.28%
Gartmore GVIT – Small Company Fund: Class I
2005	0.00%	1,752,846		23.033016		40,373,330	0.00%	12.32%
2004	0.00%	1,765,320		20.507271		36,201,896	0.00%	19.02%
2003	0.00%	1,696,669		17.229813		29,233,290	0.00%	41.01%
2002	0.00%	1,515,751		12.218656		18,520,440	0.00%	-17.33%
2001	0.00%	1,244,437		14.779740		18,392,455	0.13%	-6.70%
Gartmore GVIT – Turner Growth Focus Fund – Class I
2003	0.00%	215,089		3.336873		717,725	0.00%	50.96%
2002	0.00%	156,451		2.210411		345,821	0.00%	-42.86%
2001	0.00%	105,096		3.868223		406,535	0.00%	-39.03%
Gartmore GVIT – U.S. Growth Leaders Fund: Class I
2005	0.00%	279,900		15.751023		4,408,711	0.00%	11.96%
2004	0.00%	184,294		14.068165		2,592,678	0.00%	12.41%
2003	0.00%	242,970		12.515174		3,040,812	0.00%	52.14%
2002	0.00%	48,858		8.226323		401,922	0.00%	-17.74%	05/01/02
Gartmore GVIT – Van Kampen Multi Sector Bond Fund – Class I
2005	0.00%	636,228		15.007380		9,548,115	3.99%	2.18%
2004	0.00%	588,866		14.687199		8,648,792	4.55%	6.53%
2003	0.00%	589,360		13.786437		8,125,175	5.42%	12.12%
2002	0.00%	574,913		12.296568		7,069,457	4.49%	7.21%
2001	0.00%	1,505,377		11.469927		17,266,564	6.01%	4.19%
Gartmore GVIT – Van Kampen Value Fund – Class I
2005	0.00%	825,902		12.908610		10,661,247	1.61%	4.25%
2004	0.00%	665,190		12.382749		8,236,881	1.39%	17.50%
2003	0.00%	432,461		10.538646		4,557,553	1.34%	31.43%
2002	0.00%	277,592		8.018258		2,225,804	1.34%	-25.14%
2001	0.00%	208,187		10.711409		2,229,976	1.63%	-12.15%
Gartmore GVIT – Worldwide Leaders Fund: Class I
2005	0.00%	262,448		14.608344		3,833,931	1.11%	19.34%
2004	0.00%	281,954		12.241206		3,451,457	0.00%	15.67%
2003	0.00%	280,311		10.583316		2,966,620	0.00%	36.06%
2002	0.00%	279,292		7.778516		2,172,477	2.00%	-25.39%
2001	0.00%	1,687,489		10.425406		17,592,758	1.84%	-18.81%
Gartmore GVIT III – Dreyfus International Value Fund – Class III
2005	0.00%	402,348		11.451970		4,607,677	0.95%	14.52%	05/02/05
Gartmore GVIT III – Emerging Markets Fund: Class III
2005	0.00%	462,520		13.336908		6,168,587	0.20%	33.37%	05/02/05
Gartmore GVIT III – Federated High Income Bond Fund: Class III
2005	0.00%	429,384		10.540776		4,526,041	6.02%	5.41%	05/02/05
Gartmore GVIT III – Global Health Sciences Fund: Class III
2005	0.00%	128,282		10.742057		1,378,013	0.00%	7.42%	05/02/05
Gartmore GVIT III – Global Technology and Communications Fund: Class III
2005	0.00%	89,142		12.317458		1,098,003	0.00%	23.17%	05/02/05

(Continued)

65

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Gartmore GVIT ID II – Aggressive Fund – Class II
2005	0.00%	1,044,556	$	13.521320	$	14,123,776	2.02%	7.93%
2004	0.00%	937,068		12.527746		11,739,350	1.85%	14.03%
2003	0.00%	539,178		10.986753		5,923,816	1.57%	31.87%
2002	0.00%	154,196		8.331709		1,284,716	0.86%	-16.68%	01/25/02
Gartmore GVIT ID II – Conservative Fund – Class II
2005	0.00%	706,430		11.724859		8,282,792	2.49%	3.31%
2004	0.00%	593,680		11.349571		6,738,013	2.49%	4.65%
2003	0.00%	430,237		10.845040		4,665,937	2.59%	7.91%
2002	0.00%	202,573		10.050418		2,035,943	2.18%	0.50%	01/25/02
Gartmore GVIT ID II – Moderate Fund – Class II
2005	0.00%	3,150,642		12.661618		39,892,225	2.39%	5.34%
2004	0.00%	2,369,740		12.019313		28,482,647	2.21%	9.54%
2003	0.00%	1,419,724		10.972970		15,578,589	2.05%	20.05%
2002	0.00%	398,104		9.140249		3,638,770	1.66%	-8.60%	01/25/02
Gartmore GVIT ID II – Moderately Aggressive Fund – Class II
2005	0.00%	3,665,284		13.204972		48,399,973	2.19%	7.07%
2004	0.00%	2,664,904		12.332826		32,865,797	2.01%	12.09%
2003	0.00%	1,386,608		11.002361		15,255,962	1.61%	26.64%
2002	0.00%	375,973		8.687687		3,266,336	1.05%	-13.12%	01/25/02
Gartmore GVIT ID II – Moderately Conservative Fund – Class II
2005	0.00%	996,854		12.275099		12,236,482	2.78%	4.49%
2004	0.00%	934,806		11.748118		10,982,211	2.38%	7.16%
2003	0.00%	794,151		10.963279		8,706,499	2.33%	13.70%
2002	0.00%	418,980		9.642427		4,039,984	1.99%	-3.58%	01/25/02
Janus AS – Balanced Portfolio – Service Shares
2005	0.00%	93,760		13.321108		1,248,987	2.04%	7.66%
2004	0.00%	90,538		12.373264		1,120,251	2.45%	8.29%
2003	0.00%	60,397		11.425728		690,080	2.34%	13.72%
Janus AS – Forty Portfolio – Service Shares
2005	0.00%	3,170,060		8.641403		27,393,766	0.01%	12.56%
2004	0.00%	3,379,686		7.677436		25,947,323	0.02%	17.97%
2003	0.00%	3,484,342		6.508092		22,676,418	0.25%	20.23%
2002	0.00%	3,279,169		5.412895		17,749,797	0.32%	-15.93%
2001	0.00%	3,009,852		6.438372		19,378,547	1.01%	-21.83%
Janus AS – Global Technology Portfolio – Service Shares
2005	0.00%	3,135,014		4.004823		12,555,176	0.00%	11.55%
2004	0.00%	3,258,384		3.590186		11,698,205	0.00%	0.57%
2003	0.00%	3,237,773		3.569969		11,558,749	0.00%	46.47%
2002	0.00%	3,153,932		2.437287		7,687,037	0.00%	-40.93%
2001	0.00%	2,757,839		4.126190		11,379,368	0.63%	-37.31%
Janus AS – International Growth Portfolio – Service Shares
2005	0.00%	2,831,486		9.908475		28,055,708	1.05%	31.94%
2004	0.00%	3,009,298		7.509901		22,599,530	0.85%	18.69%
2003	0.00%	3,013,609		6.327527		19,068,692	1.02%	34.53%
2002	0.00%	2,935,440		4.703343		13,806,381	0.70%	-25.76%
2001	0.00%	2,646,977		6.335104		16,768,875	0.81%	-23.43%
Janus AS – Risk-Managed Large Cap Core Portfolio – Service Shares
2005	0.00%	31,826		16.027544		510,093	1.33%	10.91%
2004	0.00%	23,542		14.450740		340,199	2.52%	17.46%
2003	0.00%	3,278		12.302260		40,327	0.30%	23.02%	05/01/03
MFS® VITSM – MFS Investors Growth Stock Series – Initial Class
2005	0.00%	291,396		13.231476		3,855,599	0.34%	4.49%
2004	0.00%	214,290		12.663111		2,713,578	0.00%	9.18%
2003	0.00%	38,925		11.597867		451,447	0.00%	15.98%	05/01/03
MFS® VITSM – MFS Value Series – Initial Class
2005	0.00%	118,172		15.193770		1,795,478	0.73%	6.66%
2004	0.00%	72,218		14.245099		1,028,753	0.45%	15.18%
2003	0.00%	21,683		12.367820		268,171	0.00%	23.68%	05/01/03

(Continued)

66

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Neuberger Berman AMT – International Portfolio – Class S
2005	0.00%	53,950	$	11.750261	$	633,927	0.26%	17.50%	05/02/05
Neuberger Berman AMT – Regency Portfolio – Class S
2005	0.00%	23,100		11.661977		269,392	0.00%	16.62%	05/02/05
Neuberger Berman AMT – Guardian Portfolio – I Class Shares
2005	0.00%	509,104		18.337744		9,335,819	0.15%	8.39%
2004	0.00%	572,382		16.918157		9,683,649	0.12%	15.81%
2003	0.00%	601,395		14.608014		8,785,187	0.89%	31.76%
2002	0.00%	568,694		11.086748		6,304,967	0.75%	-26.45%
2001	0.00%	527,509		15.073287		7,951,295	0.29%	-1.51%
Neuberger Berman AMT – Limited Maturity Bond Portfolio – I Class Shares
2005	0.00%	748,972		10.325859		7,733,779	3.97%	1.44%
2004	0.00%	335,648		10.178954		3,416,546	4.28%	0.78%
2003	0.00%	116,918		10.100257		1,180,902	12.48%	1.00%	05/01/03
Neuberger Berman AMT – Mid Cap Growth Portfolio – I Class Shares
2005	0.00%	1,544,990		17.894121		27,646,238	0.00%	13.74%
2004	0.00%	1,604,468		15.732356		25,242,062	0.00%	16.31%
2003	0.00%	1,575,959		13.526477		21,317,173	0.00%	28.07%
2002	0.00%	1,415,445		10.561769		14,949,603	0.00%	-29.34%
2001	0.00%	1,320,243		14.947072		19,733,767	0.00%	-24.64%
Neuberger Berman AMT – Partners Portfolio® – I Class Shares
2005	0.00%	1,054,060		15.757590		16,609,445	0.98%	18.04%
2004	0.00%	902,952		13.348803		12,053,328	0.01%	18.98%
2003	0.00%	883,657		11.219837		9,914,488	0.00%	35.09%
2002	0.00%	887,402		8.305600		7,370,406	0.54%	-24.14%
2001	0.00%	811,919		10.948898		8,889,618	0.33%	-2.83%
Neuberger Berman AMT – Socially Responsive Portfolio® – I Class Shares
2005	0.00%	104,292		14.979202		1,562,211	0.00%	6.86%
2004	0.00%	42,274		14.018027		592,598	0.00%	13.28%
2003	0.00%	10,340		12.374746		127,955	0.00%	23.75%	05/01/03
Neuberger Berman AMT – Fasciano Portfolio – S Class Shares
2005	0.00%	69,514		14.499238		1,007,900	0.00%	2.90%
2004	0.00%	57,292		14.091031		807,303	0.00%	11.88%
2003	0.00%	26,989		12.595173		339,931	0.00%	25.06%
Oppenheimer Funds – Aggressive Growth Fund/VA – Initial Class
2005	0.00%	2,021,976		15.356470		31,050,414	0.00%	12.33%
2004	0.00%	2,473,214		13.671269		33,811,974	0.00%	19.78%
2003	0.00%	2,289,693		11.413972		26,134,492	0.00%	25.59%
2002	0.00%	2,165,861		9.088271		19,683,932	0.63%	-27.79%
2001	0.00%	1,900,037		12.586003		23,913,871	0.86%	-31.27%
Oppenheimer Funds – Capital Appreciation Fund/VA – Initial Class
2005	0.00%	2,994,184		16.491164		49,377,579	0.91%	5.10%
2004	0.00%	3,086,788		15.691176		48,435,334	0.31%	6.94%
2003	0.00%	2,916,468		14.673413		42,794,539	0.38%	30.94%
2002	0.00%	2,688,225		11.205948		30,124,110	0.57%	-26.86%
2001	0.00%	2,119,767		15.320868		32,476,670	0.59%	-12.58%
Oppenheimer Funds – Global Securities Fund/VA – Initial Class
2005	0.00%	2,017,894		12.806945		25,843,057	1.00%	14.31%
2004	0.00%	2,460,964		11.203969		27,572,564	1.15%	19.16%
2003	0.00%	1,978,401		9.402230		18,601,381	0.73%	43.02%
2002	0.00%	1,533,749		6.574074		10,082,979	0.55%	-22.13%
2001	0.00%	784,596		8.442846		6,624,223	0.39%	-12.04%
Oppenheimer Funds – High Income Fund/VA – Initial Class
2005	0.00%	304,496		12.466334		3,795,949	6.30%	2.31%
2004	0.00%	260,866		12.184423		3,178,502	4.03%	8.97%
2003	0.00%	137,738		11.181817		1,540,161	0.00%	11.82%	05/01/03

(Continued)

67

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Oppenheimer Funds – Main Street Fund®/VA – Initial Class
2005	0.00%	2,675,742	$	12.465965	$	33,355,706	1.37%	5.98%
2004	0.00%	2,802,124		11.763032		32,961,474	0.83%	9.46%
2003	0.00%	2,733,213		10.746526		29,372,545	0.90%	26.72%
2002	0.00%	2,347,711		8.480652		19,910,120	0.75%	-18.80%
2001	0.00%	1,858,823		10.443747		19,413,077	0.50%	-10.16%
Oppenheimer Funds – Main Street Small Cap Fund®/VA – Initial Class
2005	0.00%	146,346		18.206560		2,664,457	0.00%	9.92%
2004	0.00%	111,964		16.563464		1,854,512	0.00%	19.42%
2003	0.00%	81,527		13.869971		1,130,777	0.00%	38.70%	05/01/03
Oppenheimer Funds III – Global Securities Fund/VA – Class 3
2005	0.00%	723,136		12.059670		8,720,782	0.00%	20.60%	05/02/05
Putnam VT IB – Growth & Income Fund – IB Shares
2005	0.00%	79,162		14.527575		1,150,032	1.49%	5.23%
2004	0.00%	69,826		13.805820		964,005	1.11%	11.11%
2003	0.00%	21,892		12.425216		272,013	0.00%	24.25%	05/01/03
Putnam VT IB – International Equity Fund – IB Shares
2005	0.00%	138,276		16.685441		2,307,196	1.32%	12.20%
2004	0.00%	107,542		14.871493		1,599,310	1.30%	16.19%
2003	0.00%	58,343		12.798803		746,721	0.00%	27.99%	05/01/03
Putnam VT IB – Voyager II Fund – IB Shares
2005	0.00%	27,308		13.159164		359,350	0.59%	5.69%
2004	0.00%	26,864		12.450430		334,468	0.20%	5.03%
2003	0.00%	11,366		11.853879		134,731	0.00%	18.54%	05/01/03
T. Rowe Price II – Blue Chip Growth Portfolio – II
2005	0.00%	33,050		11.314946		373,959	0.16%	13.15%	05/02/05
T. Rowe Price II – Equity Income Portfolio – II
2005	0.00%	69,938		15.070153		1,053,976	1.39%	3.69%
T. Rowe Price II – Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio – Class II
2005	0.00%	19,896		10.127763		201,502	2.09%	1.28%	05/02/05
Van Eck WIT – Worldwide Emerging Markets Fund – Initial Class
2005	0.00%	573,050		18.734825		10,735,991	0.71%	32.00%
2004	0.00%	535,204		14.193509		7,596,423	0.53%	25.89%
2003	0.00%	596,383		11.274461		6,723,897	0.11%	54.19%
2002	0.00%	596,497		7.312205		4,361,708	0.21%	-2.90%
2001	0.00%	527,543		7.530636		3,972,734	0.00%	-1.81%
Van Eck WIT – Worldwide Hard Assets Fund – Initial Class
2005	0.00%	509,766		22.089482		11,260,467	0.31%	51.67%
2004	0.00%	392,894		14.564221		5,722,195	0.31%	24.23%
2003	0.00%	345,678		11.747435		4,060,830	0.41%	45.08%
2002	0.00%	244,054		8.097327		1,976,185	0.75%	-2.83%
2001	0.00%	171,698		8.333503		1,430,846	1.04%	-10.44%
Van Kampen UIF – Core Plus Fixed Income Portfolio – Class I
2005	0.00%	126,012		11.130805		1,402,615	3.73%	4.21%
2004	0.00%	50,918		10.680729		543,841	3.92%	4.37%
2003	0.00%	12,470		10.233765		127,615	0.05%	2.34%	05/01/03
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I
2005	0.00%	306,254		19.606425		6,004,546	7.14%	12.25%
2004	0.00%	310,368		17.466655		5,421,091	7.52%	10.06%
2003	0.00%	310,596		15.869838		4,929,108	0.00%	27.86%
2002	0.00%	229,797		12.411489		2,852,123	8.74%	9.22%
2001	0.00%	135,438		11.363553		1,539,057	10.76%	10.10%
Van Kampen UIF – Mid Cap Growth Portfolio – Class I
2005	0.00%	300,668		8.569610		2,576,607	0.00%	17.57%
2004	0.00%	328,124		7.289089		2,391,725	0.00%	21.60%
2003	0.00%	308,361		5.994500		1,848,470	0.00%	41.76%
2002	0.00%	282,160		4.228519		1,193,119	0.00%	-31.16%
2001	0.00%	197,987		6.142256		1,216,087	0.00%	-29.31%

(Continued)

68

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Van Kampen UIF – U.S. Real Estate Portfolio – Class I
2005	0.00%	1,409,392	$	26.163932	$	36,875,236	1.19%	17.05%
2004	0.00%	1,415,482		22.352530		31,639,604	1.61%	36.39%
2003	0.00%	1,225,582		16.388129		20,084,996	0.00%	37.51%
2002	0.00%	1,098,781		11.917684		13,094,925	4.01%	-0.79%
2001	0.00%	636,426		12.012213		7,644,885	5.40%	9.84%
Wells Fargo VTFSM – Wells Fargo Advantage Opportunity Fund VT
2005	0.00%	1,428,994		12.162469		17,380,095	0.00%	7.88%
2004	0.00%	1,509,654		11.273634		17,019,287	0.00%	18.22%
2003	0.00%	1,535,336		9.536128		14,641,161	0.08%	37.01%
2002	0.00%	1,334,891		6.960374		9,291,341	0.50%	-26.82%
2001	0.00%	833,759		9.511087		7,929,954	0.65%	-3.70%
The BEST of AMERICA® Corporate Variable Universal Life SeriesSM Reduced Fee Tier (0.10%)
AIM VIF – Basic Value Fund – Series I Shares
2005	0.10%	174		15.409499		2,681	0.09%	5.63%
2004	0.10%	27,138		14.588087		395,892	0.00%	10.96%
2003	0.10%	173		13.147350		2,274	0.06%	33.49%
AIM VIF – Capital Appreciation Fund – Series I Shares
2003	0.10%	1,045		13.277382		13,875	0.00%	35.22%
AIM VIF – Capital Development Fund – Series I Shares
2005	0.10%	29,388		16.774744		492,976	0.00%	9.50%
2004	0.10%	12,220		15.320003		187,210	0.00%	15.38%
Alliance VPSF – AllianceBernstein Growth & Income Portfolio – Class A
2005	0.10%	84,426		15.473584		1,306,373	1.48%	4.76%
2004	0.10%	13,180		14.770235		194,672	0.92%	11.35%
2003	0.10%	8,268		13.264628		109,672	0.51%	32.37%
American Century VP – Income & Growth Fund – Class I
2005	0.10%	27,068		11.565387		313,052	1.94%	4.53%
2004	0.10%	39,010		11.064552		431,628	1.37%	12.88%
2003	0.10%	44,282		9.802103		434,057	1.28%	29.22%
2002	0.10%	483,390		7.585400		3,666,707	1.00%	-19.45%
2001	0.10%	559,907		9.417116		5,272,709	0.85%	-8.44%
American Century VP – International Fund – Class I
2005	0.10%	645,460		12.085047		7,800,414	1.25%	13.14%
2004	0.10%	881,348		10.681395		9,414,026	0.56%	14.81%
2003	0.10%	860,133		9.303615		8,002,346	0.73%	24.39%
2002	0.10%	1,065,487		7.479659		7,969,479	0.78%	-20.45%
2001	0.10%	1,067,581		9.402604		10,038,041	0.08%	-29.24%
American Century VP – Ultra® Fund – Class I
2005	0.10%	28,300		11.310747		320,094	0.00%	2.06%
2004	0.10%	9,976		11.082064		110,555	0.00%	10.56%
2003	0.10%	865		10.023142		8,670	0.00%	24.77%
2002	0.10%	3,004		8.033091		24,131	0.66%	-19.67%	05/01/02
American Century VP – Value Fund – Class I
2005	0.10%	71,456		18.442377		1,317,818	0.83%	4.93%
2004	0.10%	59,642		17.576102		1,048,274	0.97%	14.22%
2003	0.10%	68,891		15.388111		1,060,102	1.04%	28.83%
2002	0.10%	455,713		11.944573		5,443,297	0.75%	-12.71%
2001	0.10%	350,055		13.683342		4,789,922	0.60%	12.71%
Baron Capital Funds Trust IS – Baron Capital Asset Fund: Insurance Shares
2005	0.10%	97,836		16.334885		1,598,140	0.00%	3.26%
2004	0.10%	128,444		15.819001		2,031,856	0.00%	25.51%
2003	0.10%	13,790		12.603456		173,802	0.00%	29.88%
Calvert VS – Social Equity Portfolio
2005	0.10%	1,026		14.042800		14,408	0.06%	4.44%
2004	0.10%	1,026		13.445930		13,796	0.08%	7.05%
2003	0.10%	1,026		12.560357		12,887	0.01%	22.05%

(Continued)

69

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Credit Suisse Trust – Large Cap Value Portfolio
2003	0.10%	9,715	$	11.248621	$	109,280	0.76%	25.04%
2002	0.10%	15,615		8.996113		140,474	0.76%	-23.17%
2001	0.10%	25,873		11.709370		302,957	0.00%	0.84%
Dreyfus IP – European Equity Portfolio
2001	0.10%	40,585		9.087189		368,804	0.79%	-28.20%
Dreyfus IP – Mid Cap Stock Portfolio – Initial Shares
2005	0.10%	2,806		16.374088		45,946	0.02%	9.06%
2004	0.10%	2,784		15.013547		41,798	0.43%	14.36%
2003	0.10%	98,265		13.128294		1,290,052	1.02%	31.59%
Dreyfus IP – Small Cap Stock Index Portfolio – Service Class
2005	0.10%	37,378		13.770744		514,723	0.00%	7.13%
2004	0.10%	219,642		12.854754		2,823,444	0.57%	21.76%
2003	0.10%	220,855		10.557229		2,331,617	0.27%	37.64%
2002	0.10%	173,580		7.670098		1,331,376	0.29%	-23.30%	05/01/02
Dreyfus Investor, Inc. – Dreyfus Stock Index Fund, Inc. – Initial Shares
2005	0.10%	426,152		10.447448		4,452,201	1.63%	4.59%
2004	0.10%	1,151,618		9.989249		11,503,799	1.82%	10.53%
2003	0.10%	1,165,447		9.037627		10,532,875	1.54%	28.23%
2002	0.10%	3,024,447		7.047709		21,315,422	1.45%	-22.44%
2001	0.10%	2,163,531		9.086757		19,659,480	1.14%	-12.27%
Dreyfus Investor, Inc. – The Dreyfus Socially Responsible Growth Fund, Inc.
2005	0.10%	90,610		8.271484		749,479	0.00%	3.51%
2004	0.10%	88,956		7.990838		710,833	0.40%	6.10%
2003	0.10%	85,500		7.531118		643,911	0.11%	25.88%
2002	0.10%	103,586		5.982920		619,747	0.22%	-29.02%
2001	0.10%	112,446		8.428546		947,756	0.08%	-22.65%
Dreyfus VIF – Appreciation Portfolio – Initial Shares
2005	0.10%	49,014		10.630084		521,023	0.02%	4.27%
2004	0.10%	44,950		10.194416		458,239	1.67%	4.94%
2003	0.10%	55,181		9.714448		536,053	1.18%	21.05%
2002	0.10%	471,098		8.025278		3,780,692	1.22%	-16.80%
2001	0.10%	285,642		9.645425		2,755,138	0.90%	-9.40%
Dreyfus VIF – International Value Portfolio – Initial Shares
2005	0.10%	71,656		17.228282		1,234,510	0.00%	11.78%
2004	0.10%	69,786		15.412931		1,075,607	1.23%	19.90%
2003	0.10%	64,009		12.854570		822,808	2.67%	36.22%
2002	0.10%	23,131		9.436677		218,280	0.37%	-5.63%	09/03/02
Federated IS – Quality Bond Fund II – Primary Shares
2005	0.10%	394,406		14.042347		5,538,386	3.55%	1.20%
2004	0.10%	720,724		13.876320		10,000,997	3.92%	3.52%
2003	0.10%	711,865		13.404948		9,542,513	3.30%	4.54%
2002	0.10%	1,174,189		12.822629		15,056,190	3.20%	9.20%
2001	0.10%	1,268,418		11.742610		14,894,538	2.92%	7.91%
Fidelity® VIP – Equity-Income Portfolio: Service Class
2005	0.10%	129,586		13.515730		1,751,449	1.56%	5.65%
2004	0.10%	300,426		12.792683		3,843,255	1.39%	11.27%
2003	0.10%	318,394		11.496883		3,660,539	1.66%	30.09%
2002	0.10%	1,076,277		8.837687		9,511,799	1.50%	-17.08%
2001	0.10%	358,181		10.658123		3,817,537	1.13%	-5.18%
Fidelity® VIP – Growth Portfolio: Service Class
2005	0.10%	1,048,788		9.232178		9,682,598	0.41%	5.57%
2004	0.10%	1,103,628		8.745297		9,651,555	0.16%	3.16%
2003	0.10%	1,108,591		8.477377		9,397,944	0.18%	32.65%
2002	0.10%	1,133,702		6.390869		7,245,341	0.14%	-30.27%
2001	0.10%	1,700,271		9.164946		15,582,892	0.00%	-17.81%

(Continued)

70

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Fidelity® VIP – High Income Portfolio: Service Class
2005	0.10%	653,958	$	10.291612	$	6,730,282	14.70%	2.42%
2004	0.10%	668,456		10.048366		6,716,891	8.03%	9.36%
2003	0.10%	674,902		9.188481		6,201,324	6.36%	26.84%
2002	0.10%	844,975		7.243970		6,120,974	9.18%	3.51%
2001	0.10%	630,396		6.998020		4,411,524	13.22%	-11.98%
Fidelity® VIP – Overseas Portfolio: Service Class
2005	0.10%	116,010		13.424644		1,557,393	0.56%	18.85%
2004	0.10%	127,656		11.295209		1,441,901	0.98%	13.37%
2003	0.10%	100,484		9.962776		1,001,100	0.63%	43.06%
2002	0.10%	191,072		6.964010		1,330,627	0.64%	-20.42%
2001	0.10%	108,597		8.751211		950,355	5.46%	-21.35%
Fidelity® VIP II – Contrafund® Portfolio: Service Class
2005	0.10%	216,460		14.910969		3,227,628	0.19%	16.73%
2004	0.10%	194,978		12.773836		2,490,617	0.24%	15.22%
2003	0.10%	200,777		11.086093		2,225,832	0.30%	28.22%
2002	0.10%	166,146		8.645878		1,436,478	0.69%	-9.51%
2001	0.10%	215,109		9.555012		2,055,369	0.61%	-12.45%
Fidelity® VIP III – Growth Opportunities Portfolio: Service Class
2005	0.10%	18,822		8.768269		165,036	0.84%	8.75%
2004	0.10%	19,294		8.062568		155,559	0.48%	6.95%
2003	0.10%	17,795		7.538466		134,147	0.59%	29.53%
2002	0.10%	37,306		5.819798		217,113	0.93%	-21.99%
2001	0.10%	43,809		7.460705		326,846	0.23%	-14.52%
Fidelity® VIP III – Value Strategies Portfolio: Service Class
2005	0.10%	6,844		13.800839		94,453	0.00%	2.45%
2004	0.10%	9,532		13.470536		128,401	0.00%	13.87%
2003	0.10%	9,280		11.829409		109,777	0.00%	57.63%
Franklin Templeton VIP II – Templeton Foreign Securities Fund – Class 2
2005	0.10%	25,200		16.323349		411,348	1.12%	10.06%
2004	0.10%	202,324		14.831493		3,000,767	1.11%	18.41%
2003	0.10%	172,783		12.525565		2,164,205	1.96%	32.08%
Gartmore GVIT – Dreyfus Mid Cap Index Fund – Class I
2005	0.10%	169,140		20.518746		3,470,541	1.04%	11.99%
2004	0.10%	193,708		18.322527		3,549,220	0.56%	15.62%
2003	0.10%	216,768		15.847726		3,435,280	0.50%	34.52%
2002	0.10%	185,632		11.781293		2,186,985	0.45%	-15.39%
2001	0.10%	170,502		13.923857		2,374,045	0.55%	-1.40%
Gartmore GVIT – Emerging Markets Fund: Class I
2005	0.10%	51,076		18.437333		941,705	0.60%	32.50%
2004	0.10%	70,226		13.914559		977,164	1.04%	20.62%
2003	0.10%	47,949		11.535602		553,121	0.61%	65.10%
2002	0.10%	32,769		6.987132		228,961	0.23%	-15.31%
2001	0.10%	4,374		8.250608		36,088	0.24%	-5.28%
Gartmore GVIT – Federated High Income Bond Fund: Class I
2005	0.10%	25,760		13.453811		346,570	6.92%	2.28%
2004	0.10%	95,632		13.154128		1,257,956	7.58%	9.99%
2003	0.10%	22,729		11.959792		271,834	7.99%	22.15%
2002	0.10%	383,942		9.791148		3,759,233	10.09%	3.12%
2001	0.10%	226,888		9.494719		2,154,238	11.31%	4.11%
Gartmore GVIT – Global Financial Services Fund: Class I
2005	0.10%	69,072		16.420998		1,134,231	2.00%	11.04%
2004	0.10%	5,676		14.788326		83,939	1.37%	20.87%
2003	0.10%	4,317		12.234704		52,817	1.08%	41.31%
2002	0.10%	1,597		8.658094		13,827	0.02%	-13.42%	05/01/02
Gartmore GVIT – Global Health Sciences Fund: Class I
2005	0.10%	20,710		13.285419		275,141	0.00%	8.33%
2004	0.10%	49,544		12.263680		607,592	0.00%	7.75%
2003	0.10%	8,967		11.381435		102,057	0.00%	36.56%

(Continued)

71

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Gartmore GVIT – Global Technology and Communications Fund: Class I
2005	0.10%	125,958	$	3.160408	$	398,079	0.00%	-0.62%
2004	0.10%	675,570		3.180008		2,148,318	0.00%	4.21%
2003	0.10%	111,866		3.051579		341,368	0.00%	55.08%
2002	0.10%	109,706		1.967806		215,880	0.67%	-42.84%
2001	0.10%	26,875		3.442527		92,518	0.00%	-42.78%
Gartmore GVIT – Global Utilities Fund: Class I
2005	0.10%	16,528		14.840284		245,280	2.09%	6.28%
2004	0.10%	13,192		13.963148		184,202	1.64%	29.84%
2003	0.10%	1,184		10.754365		12,733	1.02%	23.93%
2002	0.10%	200		8.678027		1,736	0.61%	-13.22%	05/01/02
Gartmore GVIT – Government Bond Fund: Class I
2005	0.10%	100,704		14.325057		1,442,591	3.71%	3.16%
2004	0.10%	68,418		13.886189		950,065	5.38%	3.16%
2003	0.10%	112,900		13.460973		1,519,744	3.25%	1.90%
2002	0.10%	1,835,772		13.210181		24,250,880	4.66%	10.87%
2001	0.10%	1,008,673		11.914756		12,018,093	5.61%	7.15%
Gartmore GVIT – Growth Fund – Class I
2005	0.10%	59,854		5.902844		353,309	0.08%	6.39%
2004	0.10%	47,844		5.548096		265,443	0.34%	8.05%
2003	0.10%	27,011		5.134813		138,696	0.02%	32.61%
2002	0.10%	278,378		3.872224		1,077,942	0.00%	-28.79%
2001	0.10%	242,722		5.437881		1,319,893	0.00%	-28.21%
Gartmore GVIT – International Growth Fund: Class I
2005	0.10%	96,242		10.048006		967,040	1.10%	30.08%
2004	0.10%	50,722		7.724537		391,804	0.85%	14.08%
2003	0.10%	40,966		6.771174		277,388	0.00%	35.49%
2002	0.10%	15,806		4.997657		78,993	0.00%	-24.18%
2001	0.10%	6,321		6.591491		41,665	0.26%	-28.72%
Gartmore GVIT – J.P. Morgan Balanced Fund – Class I
2005	0.10%	81,682		11.000579		898,549	1.98%	2.44%
2004	0.10%	59,166		10.738528		635,356	1.94%	8.38%
2003	0.10%	19,620		9.907971		194,394	1.76%	18.30%
2002	0.10%	192,540		8.375591		1,612,636	2.28%	-12.40%
2001	0.10%	113,898		9.561159		1,088,997	2.54%	-3.77%
Gartmore GVIT – Mid Cap Growth Fund: Class I
2005	0.10%	102,290		10.773967		1,102,069	0.00%	9.63%
2004	0.10%	102,944		9.827397		1,011,672	0.00%	15.22%
2003	0.10%	121,377		8.529042		1,035,230	0.00%	39.99%
2002	0.10%	509,655		6.092407		3,105,026	0.00%	-37.08%
2001	0.10%	481,759		9.682440		4,664,603	0.00%	-30.38%
Gartmore GVIT – Money Market Fund – Class I
2002	0.10%	1,193,207		11.481201		13,699,449	1.51%	1.11%
2001	0.10%	14,433,921		11.355131		163,899,064	3.18%	3.50%
Gartmore GVIT – Nationwide® Fund: Class I
2005	0.10%	38,013,326		11.171952		424,683,053	1.00%	7.33%
2004	0.10%	19,034,918		10.408568		198,126,238	1.30%	9.64%
2003	0.10%	19,180,432		9.493288		182,085,365	0.59%	27.38%
2002	0.10%	16,109,248		7.452447		120,053,317	0.95%	-17.44%
2001	0.10%	9,361,607		9.026234		84,500,055	0.88%	-11.91%
Gartmore GVIT – Nationwide® Leaders Fund: Class I
2005	0.10%	13,776		13.837136		190,620	1.29%	10.20%
2004	0.10%	12,564		12.556222		157,756	0.48%	18.67%
2003	0.10%	8,556		10.580391		90,526	0.15%	25.26%
Gartmore GVIT – Nationwide® Strategic Value Fund – Class I
2003	0.10%	6,148		10.638965		65,408	0.04%	38.67%
2002	0.10%	68,838		7.672215		528,140	0.03%	-25.43%
2001	0.10%	43,765		10.289042		450,300	0.53%	-3.35%

(Continued)

72

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Gartmore GVIT – Small Cap Growth Fund: Class I
2005	0.10%	123,464	$	16.714800	$	2,063,676	0.00%	7.98%
2004	0.10%	70,962		15.479228		1,098,437	0.00%	13.30%
2003	0.10%	81,334		13.661888		1,111,176	0.00%	34.13%
2002	0.10%	65,945		10.185475		671,681	0.00%	-33.35%
2001	0.10%	38,878		15.282975		594,172	0.00%	-10.93%
Gartmore GVIT – Small Cap Value Fund: Class I
2005	0.10%	250,094		26.271693		6,570,393	0.07%	2.97%
2004	0.10%	250,742		25.513967		6,397,423	0.00%	17.18%
2003	0.10%	270,768		21.773115		5,895,463	0.00%	56.70%
2002	0.10%	280,707		13.895068		3,900,443	0.01%	-27.24%
2001	0.10%	270,154		19.095903		5,158,835	0.04%	28.15%
Gartmore GVIT – Small Company Fund: Class I
2005	0.10%	123,158		23.319481		2,871,981	0.00%	12.20%
2004	0.10%	254,060		20.783025		5,280,135	0.00%	18.90%
2003	0.10%	334,150		17.478961		5,840,595	0.00%	40.87%
2002	0.10%	388,032		12.407717		4,814,591	0.00%	-17.41%
2001	0.10%	358,315		15.023475		5,383,136	0.13%	-6.80%
Gartmore GVIT – Turner Growth Focus Fund – Class I
2003	0.10%	32,705		3.326027		108,778	0.00%	50.81%
2002	0.10%	45,497		2.205430		100,340	0.00%	-42.91%
2001	0.10%	10,063		3.863379		38,877	0.00%	-39.09%
Gartmore GVIT – U.S. Growth Leaders Fund: Class I
2005	0.10%	70,284		15.693455		1,102,999	0.00%	11.85%
2004	0.10%	44,170		14.030717		619,737	0.00%	12.30%
2003	0.10%	36,540		12.494332		456,543	0.00%	51.98%
Gartmore GVIT – Van Kampen Multi Sector Bond Fund – Class I
2005	0.10%	28,056		14.558458		408,452	3.99%	2.08%
2004	0.10%	6,318		14.262059		90,108	4.55%	6.43%
2003	0.10%	3,251		13.400762		43,566	5.42%	12.00%
2002	0.10%	479,688		11.964522		5,739,238	4.49%	7.10%
2001	0.10%	246,281		11.171361		2,751,294	6.01%	4.08%
Gartmore GVIT – Van Kampen Value Fund – Class I
2005	0.10%	5,204		10.830304		56,361	1.61%	4.14%
2004	0.10%	230,518		10.399470		2,397,265	1.39%	17.38%
2003	0.10%	233,799		8.859580		2,071,361	1.34%	31.30%
2002	0.10%	211,612		6.747487		1,427,849	1.34%	-25.22%
2001	0.10%	205,053		9.022847		1,850,162	1.63%	-12.24%
Gartmore GVIT – Worldwide Leaders Fund: Class I
2005	0.10%	79,212		11.799959		934,698	1.11%	19.22%
2004	0.10%	120,048		9.897753		1,188,205	0.00%	15.55%
2003	0.10%	11,041		8.565807		94,575	0.00%	35.92%
2002	0.10%	44,257		6.301972		278,906	2.00%	-25.46%
2001	0.10%	33,960		8.454886		287,128	1.84%	-18.89%
Gartmore GVIT V – Money Market Fund: Class V
2005	0.10%	537,434		10.429961		5,605,416	2.74%	2.65%
2004	0.10%	13,954,380		10.160839		141,788,209	0.91%	0.79%
2003	0.10%	8,030,895		10.081195		80,961,019	0.70%	0.61%
2002	0.10%	11,193,504		10.020530		112,164,843	0.28%	0.21%
Gartmore GVIT ID II – Aggressive Fund – Class II
2005	0.10%	24,154		13.468331		325,314	2.02%	7.82%
2004	0.10%	24,186		12.491088		302,109	1.85%	13.91%
2003	0.10%	23,514		10.965564		257,844	1.57%	31.74%
2002	0.10%	4,815		8.323942		40,080	0.86%	-16.76%	01/25/02
Gartmore GVIT ID II – Conservative Fund – Class II
2005	0.10%	29,088		11.678890		339,716	2.49%	3.20%
2004	0.10%	21,194		11.316349		239,839	2.49%	4.55%
2003	0.10%	13,104		10.824110		141,839	2.59%	7.80%

(Continued)

73

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Gartmore GVIT ID II – Moderate Fund – Class II
2005	0.10%	1,874	$	12.611956	$	23,635	2.39%	5.24%
2004	0.10%	39,950		11.984122		478,766	2.21%	9.43%
2003	0.10%	1,913		10.951794		20,951	2.05%	19.93%
Gartmore GVIT ID II – Moderately Aggressive Fund – Class II
2005	0.10%	20,444		13.153196		268,904	2.19%	6.97%
2004	0.10%	14,182		12.296725		174,392	2.01%	11.98%
2003	0.10%	6,422		10.981133		70,521	1.61%	26.52%
2002	0.10%	6,436		8.679579		55,862	1.05%	-13.20%	01/25/02
Gartmore GVIT ID II – Moderately Conservative Fund – Class II
2005	0.10%	8,950		12.226987		109,432	2.78%	4.38%
2004	0.10%	9,038		11.713743		105,869	2.38%	7.05%
2003	0.10%	2,011		10.942135		22,005	2.33%	13.58%
Goldman Sachs VIT – Mid Cap Value Fund
2005	0.10%	75,394		17.974716		1,355,186	0.60%	12.71%
2004	0.10%	117,114		15.947340		1,867,657	0.74%	25.76%
2003	0.10%	855		12.680880		10,842	1.72%	28.26%
Janus AS – Balanced Portfolio – Service Shares
2005	0.10%	10,914		13.276935		144,904	2.04%	7.55%
2004	0.10%	11,560		12.344530		142,703	2.45%	8.18%
2003	0.10%	8,186		11.410593		93,407	2.34%	13.61%
Janus AS – Forty Portfolio – Service Shares
2005	0.10%	217,972		8.590325		1,872,450	0.01%	12.44%
2004	0.10%	112,522		7.639669		859,631	0.02%	17.85%
2003	0.10%	178,232		6.482555		1,155,399	0.25%	20.11%
2002	0.10%	182,330		5.397045		984,043	0.32%	-16.01%
2001	0.10%	242,326		6.425959		1,557,177	1.01%	-21.91%
Janus AS – Global Technology Portfolio – Service Shares
2005	0.10%	158,528		3.981148		631,123	0.00%	11.44%
2004	0.10%	151,606		3.572518		541,615	0.00%	0.47%
2003	0.10%	272,134		3.555943		967,693	0.00%	46.33%
2002	0.10%	293,034		2.430136		712,112	0.00%	-40.99%
2001	0.10%	422,625		4.118218		1,740,462	0.63%	-37.38%
Janus AS – International Growth Portfolio – Service Shares
2005	0.10%	177,088		9.849961		1,744,310	1.05%	31.81%
2004	0.10%	150,980		7.472984		1,128,271	0.85%	18.57%
2003	0.10%	176,234		6.302712		1,110,752	1.02%	34.40%
2002	0.10%	520,482		4.689573		2,440,838	0.70%	-25.83%
2001	0.10%	498,186		6.322889		3,149,975	0.81%	-23.51%
JPMorgan IT – Mid Cap Growth Portfolio
2005	0.10%	24,994		15.985073		399,531	0.00%	10.98%
2004	0.10%	2,456		14.403351		35,375	0.00%	12.51%
JPMorgan IT – Mid Cap Value Portfolio
2005	0.10%	5,916		16.647145		98,485	0.60%	9.64%
2004	0.10%	5,950		15.182812		90,338	0.58%	15.28%
2003	0.10%	5,997		13.170159		78,981	0.57%	32.62%
Neuberger Berman AMT – Guardian Portfolio – I Class Shares
2005	0.10%	34,424		13.202464		454,482	0.15%	8.28%
2004	0.10%	26,978		12.192566		328,931	0.12%	15.70%
2003	0.10%	21,062		10.538218		221,956	0.89%	31.63%
2002	0.10%	67,810		8.005967		542,885	0.75%	-26.52%
2001	0.10%	136,520		10.895640		1,487,473	0.29%	-1.61%
Neuberger Berman AMT – Mid Cap Growth Portfolio – I Class Shares
2005	0.10%	383,494		13.050574		5,004,817	0.00%	13.63%
2004	0.10%	394,394		11.485392		4,529,770	0.00%	16.19%
2003	0.10%	392,036		9.884865		3,875,223	0.00%	27.94%
2002	0.10%	687,560		7.726029		5,312,108	0.00%	-29.41%
2001	0.10%	570,922		10.944879		6,248,672	0.00%	-24.72%

(Continued)

74

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Neuberger Berman AMT – Partners Portfolio® – I Class Shares
2005	0.10%	185,490	$	14.683836	$	2,723,705	0.98%	17.93%
2004	0.10%	162,162		12.451586		2,019,174	0.01%	18.86%
2003	0.10%	6,882		10.476169		72,097	0.00%	34.95%
2002	0.10%	29,344		7.762839		227,793	0.54%	-24.22%
2001	0.10%	14,582		10.243656		149,373	0.33%	-2.92%
Neuberger Berman AMT – Fasciano Portfolio – S Class Shares
2005	0.10%	1,074		14.451137		15,521	0.00%	2.79%
2004	0.10%	51,200		14.058294		719,785	0.00%	11.76%
2003	0.10%	1,074		12.578474		13,509	0.00%	24.94%
Oppenheimer Funds – Aggressive Growth Fund/VA – Initial Class
2005	0.10%	448,332		12.287042		5,508,674	0.00%	12.21%
2004	0.10%	538,726		10.949589		5,898,828	0.00%	19.66%
2003	0.10%	588,192		9.150815		5,382,436	0.00%	25.46%
2002	0.10%	1,125,894		7.293537		8,211,750	0.63%	-27.86%
2001	0.10%	1,417,226		10.110661		14,329,092	0.86%	-31.34%
Oppenheimer Funds – Capital Appreciation Fund/VA – Initial Class
2005	0.10%	558,612		12.347907		6,897,689	0.91%	4.99%
2004	0.10%	876,150		11.760631		10,304,077	0.31%	6.83%
2003	0.10%	882,196		11.008811		9,711,929	0.38%	30.81%
2002	0.10%	969,758		8.415727		8,161,219	0.57%	-26.93%
2001	0.10%	997,036		11.517595		11,483,457	0.59%	-12.66%
Oppenheimer Funds – Global Securities Fund/VA – Initial Class
2005	0.10%	183,864		12.734604		2,341,435	1.00%	14.19%
2004	0.10%	419,770		11.151785		4,681,185	1.15%	19.04%
2003	0.10%	441,202		9.367798		4,133,091	0.73%	42.88%
2002	0.10%	769,291		6.556537		5,043,885	0.55%	-22.21%
2001	0.10%	235,861		8.428773		1,988,019	0.39%	-12.12%
Oppenheimer Funds – Main Street Fund®/VA – Initial Class
2005	0.10%	65,504		11.407291		747,223	1.37%	5.87%
2004	0.10%	62,892		10.774785		677,648	0.83%	9.35%
2003	0.10%	236,533		9.853529		2,330,685	0.90%	26.59%
2002	0.10%	322,290		7.783700		2,508,609	0.75%	-18.88%
2001	0.10%	200,772		9.595068		1,926,421	0.50%	-10.25%
PIMCO VIT – Low Duration Portfolio – Administrative Shares
2004	0.10%	435,394		10.602263		4,616,162	1.29%	1.74%
2003	0.10%	456,933		10.421178		4,761,780	1.22%	2.24%
PIMCO VIT – Real Return Portfolio – Administrative Shares
2005	0.10%	80,408		12.508033		1,005,746	2.85%	1.97%
2004	0.10%	96,300		12.266232		1,181,238	1.03%	8.78%
2003	0.10%	24,527		11.276054		276,568	2.35%	8.75%
PIMCO VIT – Total Return Portfolio – Administrative Shares
2005	0.10%	30,398		11.629906		353,526	3.47%	2.32%
2004	0.10%	50,172		11.365760		570,243	1.92%	4.78%
2003	0.10%	4,202		10.847595		45,582	2.71%	4.94%
Pioneer VCT – Pioneer High Yield VCT Portfolio – Class I Shares
2005	0.10%	11,722		15.120107		177,238	5.49%	1.84%
2004	0.10%	16,298		14.846381		241,966	5.59%	7.95%
2003	0.10%	82,218		13.752414		1,130,696	5.84%	32.65%
Royce Capital Fund – Royce Micro-Cap Portfolio
2005	0.10%	11,746		19.112697		224,498	0.60%	11.50%
2004	0.10%	11,820		17.141696		202,615	0.00%	13.73%
2003	0.10%	76,384		15.072020		1,151,261	0.00%	49.01%
T. Rowe Price II – Equity Income Portfolio – II
2005	0.10%	22,826		15.020167		342,850	1.39%	3.59%
2004	0.10%	11,962		14.499419		173,442	1.46%	14.50%
2003	0.10%	19,960		12.663048		252,754	1.80%	25.05%
2002	0.10%	512		10.126777		5,185	0.77%	1.27%	09/03/02

(Continued)

75

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
T. Rowe Price II – Mid Cap Growth Fund – II
2005	0.10%	44,810	$	19.071958	$	854,614	0.00%	14.32%
2004	0.10%	172,276		16.682608		2,874,013	0.00%	17.94%
2003	0.10%	168,799		14.145535		2,387,752	0.00%	37.95%
2002	0.10%	844		10.253796		8,654	0.00%	2.54%	09/03/02
Van Eck WIT – Worldwide Emerging Markets Fund – Initial Class
2005	0.10%	38,212		25.461491		972,934	0.71%	31.86%
2004	0.10%	32,436		19.308855		626,302	0.53%	25.76%
2003	0.10%	26,838		15.353127		412,047	0.11%	54.03%
2002	0.10%	63,522		9.967428		633,151	0.21%	-3.00%
2001	0.10%	53,871		10.275468		553,550	0.00%	-1.91%
Van Eck WIT – Worldwide Hard Assets Fund – Initial Class
2005	0.10%	26,250		30.823042		809,105	0.31%	51.52%
2004	0.10%	7,980		20.342743		162,335	0.31%	24.10%
2003	0.10%	7,570		16.424776		124,336	0.41%	44.93%
2002	0.10%	10,722		11.332655		121,509	0.75%	-2.93%
2001	0.10%	5,578		11.674866		65,122	1.04%	-10.53%
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I
2005	0.10%	17,164		25.439451		436,643	7.14%	12.14%
2004	0.10%	6,174		22.685707		140,062	7.52%	9.95%
2003	0.10%	11,686		20.632384		241,110	0.00%	27.74%
2002	0.10%	2,680		16.152298		43,288	8.74%	9.11%
2001	0.10%	147		14.803302		2,176	10.76%	9.99%
Van Kampen UIF – Mid Cap Growth Portfolio – Class I
2005	0.10%	21,748		8.521148		185,318	0.00%	17.45%
2004	0.10%	21,882		7.255105		158,756	0.00%	21.47%
2003	0.10%	22,063		5.972526		131,772	0.00%	41.62%
2002	0.10%	63,481		4.217224		267,714	0.00%	-31.23%
2001	0.10%	83,050		6.132002		509,263	0.00%	-29.38%
Van Kampen UIF – U.S. Real Estate Portfolio – Class I
2005	0.10%	125,524		30.855447		3,873,099	1.19%	16.93%
2004	0.10%	110,058		26.386900		2,904,089	1.61%	36.26%
2003	0.10%	189,968		19.365338		3,678,795	0.00%	37.37%
2002	0.10%	346,576		14.096819		4,885,619	4.01%	-0.89%
2001	0.10%	255,847		14.222851		3,638,874	5.40%	9.73%
Wells Fargo VTFSM – Wells Fargo Advantage Opportunity Fund VT
2005	0.10%	114,460		12.093732		1,384,249	0.00%	7.78%
2004	0.10%	184,596		11.221097		2,071,370	0.00%	18.10%
2003	0.10%	223,707		9.501191		2,125,483	0.08%	36.87%
2002	0.10%	226,501		6.941814		1,572,328	0.50%	-26.89%
2001	0.10%	282,804		9.495237		2,685,291	0.65%	-3.80%
The BEST of AMERICA® Corporate Variable Universal Life SeriesSM Reduced Fee Tier (0.20%)
AIM VIF – Basic Value Fund – Series I Shares
2005	0.20%	46,214		15.358428		709,774	0.09%	5.53%
2004	0.20%	23,358		14.554224		339,958	0.00%	10.85%
2003	0.20%	4,973		13.129953		65,295	0.06%	33.36%
AIM VIF – Capital Appreciation Fund – Series I Shares
2003	0.20%	288		13.259800		3,819	0.00%	35.09%
AIM VIF – Capital Development Fund – Series I Shares
2005	0.20%	21,682		16.719125		362,504	0.00%	9.39%
2004	0.20%	996		15.284432		15,223	0.00%	15.27%
AIM VIF – International Growth Fund – Series I Shares
2005	0.20%	451,992		14.032735		6,342,684	1.14%	17.69%
2004	0.20%	126,346		11.923183		1,506,446	1.36%	19.23%	05/03/04
Alliance VPSF – AllianceBernstein Growth & Income Portfolio – Class A
2005	0.20%	37,842		15.422290		583,610	1.48%	4.66%
2004	0.20%	28,554		14.735953		420,770	0.92%	11.24%
2003	0.20%	5,515		13.247066		73,058	0.51%	32.24%

(Continued)

76

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
American Century VP – Income & Growth Fund – Class I
2005	0.20%	123,222	$	11.329648	$	1,396,062	1.94%	4.42%
2004	0.20%	141,218		10.849845		1,532,193	1.37%	12.77%
2003	0.20%	166,512		9.621502		1,602,096	1.28%	29.09%
American Century VP – International Fund – Class I
2005	0.20%	640,818		9.512128		6,095,543	1.25%	13.03%
2004	0.20%	434,052		8.415693		3,652,848	0.56%	14.69%
2003	0.20%	384,244		7.337502		2,819,391	0.73%	24.26%
American Century VP – Ultra® Fund – Class I
2005	0.20%	34,792		11.269368		392,084	0.00%	1.96%
2004	0.20%	7,212		11.052535		79,711	0.00%	10.45%
2003	0.20%	1,924		10.006426		19,252	0.00%	24.65%
American Century VP – Value Fund – Class I
2005	0.20%	421,892		15.974895		6,739,680	0.83%	4.82%
2004	0.20%	321,958		15.239704		4,906,545	0.97%	14.10%
2003	0.20%	190,981		13.355894		2,550,722	1.04%	28.70%
Baron Capital Funds Trust IS – Baron Capital Asset Fund: Insurance Shares
2005	0.20%	219,114		16.280709		3,567,331	0.00%	3.16%
2004	0.20%	401,660		15.782247		6,339,097	0.00%	25.39%
2003	0.20%	276,028		12.586755		3,474,297	0.00%	29.75%
Credit Suisse Trust – Global Small Cap Portfolio
2004	0.20%	7,744		8.356633		64,714	0.00%	17.75%
2003	0.20%	7,043		7.096703		49,982	0.00%	47.36%
Credit Suisse Trust – International Focus Portfolio
2004	0.20%	10,148		9.684322		98,276	0.99%	14.51%
2003	0.20%	9,647		8.456964		81,584	0.49%	32.82%
Credit Suisse Trust – Large Cap Value Portfolio
2004	0.20%	35,398		11.474634		406,179	0.58%	11.12%
2003	0.20%	20,469		10.326271		211,368	0.76%	24.91%
Dreyfus IP – Mid Cap Stock Portfolio – Initial Shares
2005	0.20%	13,484		16.319776		220,056	0.02%	8.95%
2004	0.20%	20,268		14.978665		303,588	0.43%	14.25%
2003	0.20%	8,456		13.110902		110,866	1.02%	31.46%
Dreyfus IP – Small Cap Stock Index Portfolio – Service Class
2005	0.20%	219,726		13.720362		3,014,720	0.00%	7.02%
2004	0.20%	330,608		12.820499		4,238,560	0.57%	21.64%
2003	0.20%	13,371		10.539624		140,925	0.27%	37.50%
Dreyfus Investor, Inc. – Dreyfus Stock Index Fund, Inc. – Initial Shares
2005	0.20%	6,634,008		10.084272		66,899,141	1.63%	4.48%
2004	0.20%	4,920,402		9.651621		47,489,855	1.82%	10.42%
2003	0.20%	3,957,858		8.740894		34,595,217	1.54%	28.11%
Dreyfus Investor, Inc. – The Dreyfus Socially Responsible Growth Fund, Inc.
2004	0.20%	29,340		7.311886		214,531	0.40%	6.00%
2003	0.20%	15,093		6.898125		104,113	0.11%	25.75%
Dreyfus VIF – Appreciation Portfolio – Initial Shares
2005	0.20%	66,566		9.932997		661,200	0.02%	4.17%
2004	0.20%	290,942		9.535398		2,774,248	1.67%	4.84%
2003	0.20%	265,908		9.095533		2,418,575	1.18%	20.93%
Dreyfus VIF – International Value Portfolio – Initial Shares
2005	0.20%	679,392		17.171154		11,665,945	0.00%	11.67%
2004	0.20%	1,014,594		15.377151		15,601,565	1.23%	19.78%
2003	0.20%	611,687		12.837546		7,852,560	2.67%	36.08%
Federated IS – Quality Bond Fund II – Primary Shares
2005	0.20%	1,334,518		13.949122		18,615,354	3.55%	1.10%
2004	0.20%	1,045,524		13.797947		14,426,085	3.92%	3.41%
2003	0.20%	705,554		13.342573		9,413,906	3.30%	4.44%
Fidelity® VIP – Equity-Income Portfolio: Service Class
2005	0.20%	600,930		12.471541		7,494,523	1.56%	5.55%
2004	0.20%	253,254		11.816128		2,992,482	1.39%	11.16%
2003	0.20%	141,957		10.629864		1,508,984	1.66%	29.96%

(Continued)

77

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Fidelity® VIP – Growth Portfolio: Service Class
2005	0.20%	525,004	$	8.255819	$	4,334,338	0.41%	5.46%
2004	0.20%	1,398,590		7.828218		10,948,467	0.16%	3.06%
2003	0.20%	595,465		7.595988		4,523,145	0.18%	32.52%
Fidelity® VIP – High Income Portfolio: Service Class
2005	0.20%	53,750		13.151735		706,906	14.70%	2.32%
2004	0.20%	373,660		12.853699		4,802,913	8.03%	9.25%
2003	0.20%	87,435		11.765514		1,028,718	6.36%	26.72%
Fidelity® VIP – Overseas Portfolio: Service Class
2005	0.20%	473,692		12.033136		5,700,000	0.56%	18.73%
2004	0.20%	373,770		10.134523		3,787,981	0.98%	13.26%
2003	0.20%	315,760		8.947944		2,825,403	0.63%	42.92%
Fidelity® VIP II – Contrafund® Portfolio: Service Class
2005	0.20%	1,838,026		14.049369		25,823,106	0.19%	16.61%
2004	0.20%	708,896		12.047726		8,540,585	0.24%	15.11%
2003	0.20%	143,092		10.466376		1,497,655	0.30%	28.10%
Fidelity® VIP III – Growth Opportunities Portfolio: Service Class
2004	0.20%	24,564		9.272138		227,761	0.48%	6.85%
2003	0.20%	13,277		8.678086		115,219	0.59%	29.40%
Fidelity® VIP III – Value Strategies Portfolio: Service Class
2004	0.20%	7,530		13.434633		101,163	0.00%	13.76%
2003	0.20%	973		11.809676		11,491	0.00%	57.47%
Franklin Templeton VIP II – Templeton Foreign Securities Fund – Class 2
2005	0.20%	69,050		16.269222		1,123,390	1.12%	9.95%
2004	0.20%	41,174		14.797053		609,254	1.11%	18.29%
2003	0.20%	155,351		12.508977		1,943,282	1.96%	31.95%
Gartmore GVIT – Dreyfus Mid Cap Index Fund – Class I
2005	0.20%	704,782		15.518876		10,937,424	1.04%	11.87%
2004	0.20%	458,242		13.871631		6,356,564	0.56%	15.50%
2003	0.20%	280,100		12.010005		3,364,002	0.50%	34.38%
Gartmore GVIT – Emerging Markets Fund: Class I
2005	0.20%	169,786		18.340864		3,114,022	0.60%	32.37%
2004	0.20%	16,822		13.855548		233,078	1.04%	20.50%
2003	0.20%	21,189		11.498175		243,635	0.61%	64.93%
Gartmore GVIT – Federated High Income Bond Fund: Class I
2005	0.20%	75,410		15.117925		1,140,043	6.92%	2.18%
2004	0.20%	810,264		14.795923		11,988,604	7.58%	9.88%
2003	0.20%	777,021		13.465993		10,463,359	7.99%	22.03%
Gartmore GVIT – Global Financial Services Fund: Class I
2004	0.20%	7,074		14.748909		104,334	1.37%	20.75%
2003	0.20%	8,215		12.214302		100,340	1.08%	41.17%
Gartmore GVIT – Global Health Sciences Fund: Class I
2005	0.20%	62,816		13.236814		831,484	0.00%	8.22%
2004	0.20%	16,466		12.231005		201,396	0.00%	7.64%
2003	0.20%	4,437		11.362461		50,415	0.00%	36.42%
Gartmore GVIT – Global Technology and Communications Fund: Class I
2005	0.20%	273,712		3.143852		860,510	0.00%	-0.71%
2004	0.20%	448,724		3.166487		1,420,879	0.00%	4.10%
2003	0.20%	78,739		3.041648		239,496	0.00%	54.92%
Gartmore GVIT – Global Utilities Fund: Class I
2004	0.20%	21,186		13.925951		295,035	1.64%	29.71%
2003	0.20%	12,612		10.736432		135,408	1.02%	23.80%
Gartmore GVIT – Government Bond Fund: Class I
2005	0.20%	1,941,614		13.058642		25,354,842	3.71%	3.06%
2004	0.20%	1,951,516		12.671201		24,728,051	5.38%	3.06%
2003	0.20%	1,095,538		12.295487		13,470,173	3.25%	1.80%
Gartmore GVIT – Growth Fund – Class I
2005	0.20%	60,144		7.578777		455,818	0.08%	6.29%
2004	0.20%	47,838		7.130400		341,104	0.34%	7.94%
2003	0.20%	40,423		6.605859		267,029	0.02%	32.47%

(Continued)

78

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Gartmore GVIT – International Growth Fund: Class I
2004	0.20%	12,706	$	7.691798	$	97,732	0.85%	13.97%
2003	0.20%	8,703		6.749218		58,738	0.00%	35.35%
Gartmore GVIT – J.P. Morgan Balanced Fund – Class I
2005	0.20%	119,512		11.155509		1,333,217	1.98%	2.34%
2004	0.20%	132,248		10.900634		1,441,587	1.94%	8.27%
2003	0.20%	104,019		10.067605		1,047,222	1.76%	18.18%
Gartmore GVIT – Mid Cap Growth Fund: Class I
2004	0.20%	763,680		7.982767		6,096,280	0.00%	15.11%
2003	0.20%	155,794		6.935054		1,080,440	0.00%	39.85%
Gartmore GVIT – Money Market Fund – Class I
2005	0.20%	12,740		10.866496		138,439	2.61%	2.46%
2004	0.20%	30,788		10.605257		326,515	0.80%	0.61%
2003	0.20%	221,572		10.540982		2,335,586	0.63%	0.42%
Gartmore GVIT – Nationwide® Fund: Class I
2005	0.20%	56,248		10.913424		613,858	1.00%	7.23%
2004	0.20%	32,724		10.177848		333,060	1.30%	9.53%
2003	0.20%	20,659		9.291410		191,951	0.59%	27.26%
Gartmore GVIT – Nationwide® Leaders Fund: Class I
2004	0.20%	3,700		12.522767		46,334	0.48%	18.56%
2003	0.20%	1,086		10.562758		11,471	0.15%	25.13%
Gartmore GVIT – Nationwide® Strategic Value Fund – Class I
2003	0.20%	9,101		10.583982		96,325	0.04%	38.53%
Gartmore GVIT – Small Cap Growth Fund: Class I
2005	0.20%	196,494		16.603744		3,262,536	0.00%	7.87%
2004	0.20%	269,788		15.391720		4,152,501	0.00%	13.19%
2003	0.20%	108,065		13.598245		1,469,494	0.00%	34.00%
Gartmore GVIT – Small Cap Value Fund: Class I
2005	0.20%	458,988		18.860242		8,656,625	0.07%	2.87%
2004	0.20%	271,422		18.334546		4,976,399	0.00%	17.06%
2003	0.20%	234,794		15.661984		3,677,340	0.00%	56.54%
Gartmore GVIT – Small Company Fund: Class I
2005	0.20%	1,146,078		15.705843		18,000,121	0.00%	12.09%
2004	0.20%	346,438		14.011465		4,854,104	0.00%	18.78%
2003	0.20%	126,604		11.795728		1,493,386	0.00%	40.73%
Gartmore GVIT – Turner Growth Focus Fund – Class I
2003	0.20%	17,434		3.315211		57,797	0.00%	50.66%
Gartmore GVIT – U.S. Growth Leaders Fund: Class I
2004	0.20%	8,230		13.993330		115,165	0.00%	12.18%
2003	0.20%	5,224		12.473517		65,162	0.00%	51.83%
Gartmore GVIT – Van Kampen Multi Sector Bond Fund – Class I
2005	0.20%	114,922		13.954609		1,603,692	3.99%	1.98%
2004	0.20%	13,584		13.684149		185,885	4.55%	6.32%
2003	0.20%	9,884		12.870615		127,213	5.42%	11.89%
Gartmore GVIT – Van Kampen Value Fund – Class I
2004	0.20%	49,480		10.312567		510,266	1.39%	17.26%
2003	0.20%	7,421		8.794319		65,263	1.34%	31.17%
Gartmore GVIT – Worldwide Leaders Fund: Class I
2004	0.20%	2,874		9.758795		28,047	0.00%	15.43%
2003	0.20%	3,219		8.453981		27,213	0.00%	35.79%
Gartmore GVIT V – Money Market Fund: Class V
2005	0.20%	7,660,560		10.396676		79,644,360	2.74%	2.55%
2004	0.20%	8,296,360		10.138533		84,112,920	0.91%	0.69%
2003	0.20%	6,564,517		10.069143		66,099,060	0.70%	0.50%
Gartmore GVIT ID II – Aggressive Fund – Class II
2005	0.20%	170,910		13.415540		2,292,850	2.02%	7.72%
2004	0.20%	7,054		12.454537		87,854	1.85%	13.80%
2003	0.20%	2,814		10.944415		30,798	1.57%	31.60%

(Continued)

79

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Gartmore GVIT ID II – Conservative Fund – Class II
2005	0.20%	34,084	$	11.633095	$	396,502	2.49%	3.10%
2004	0.20%	2,950		11.283226		33,286	2.49%	4.44%
2003	0.20%	1,756		10.803228		18,970	2.59%	7.69%
Gartmore GVIT ID II – Moderate Fund – Class II
2005	0.20%	114,016		12.562517		1,432,328	2.39%	5.13%
2004	0.20%	28,510		11.949051		340,667	2.21%	9.32%
2003	0.20%	4,545		10.930659		49,680	2.05%	19.81%
Gartmore GVIT ID II – Moderately Aggressive Fund – Class II
2005	0.20%	22,860		13.101623		299,503	2.19%	6.86%
2004	0.20%	19,906		12.260724		244,062	2.01%	11.87%
2003	0.20%	5,607		10.959933		61,452	1.61%	26.39%
Gartmore GVIT ID II – Moderately Conservative Fund – Class II
2005	0.20%	18,166		12.179054		221,245	2.78%	4.28%
2004	0.20%	11,104		11.679461		129,689	2.38%	6.94%
2003	0.20%	3,486		10.921034		38,071	2.33%	13.47%
Goldman Sachs VIT – Mid Cap Value Fund
2005	0.20%	1,081,334		17.915150		19,372,261	0.60%	12.60%
2004	0.20%	907,474		15.910334		14,438,214	0.74%	25.63%
2003	0.20%	528,186		12.664093		6,688,997	1.72%	28.13%
Janus AS – Balanced Portfolio – Service Shares
2005	0.20%	261,918		13.232912		3,465,938	2.04%	7.45%
2004	0.20%	229,366		12.315866		2,824,841	2.45%	8.08%
2003	0.20%	5,017		11.395477		57,171	2.34%	13.49%
Janus AS – Forty Portfolio – Service Shares
2005	0.20%	294,576		8.539588		2,515,558	0.01%	12.33%
2004	0.20%	233,906		7.602120		1,778,181	0.02%	17.73%
2003	0.20%	262,941		6.457142		1,697,847	0.25%	19.99%
Janus AS – Global Technology Portfolio – Service Shares
2004	0.20%	173,558		3.554928		616,986	0.00%	0.37%
2003	0.20%	102,131		3.541982		361,746	0.00%	46.18%
Janus AS – International Growth Portfolio – Service Shares
2005	0.20%	349,754		9.791747		3,424,703	1.05%	31.68%
2004	0.20%	586,420		7.436235		4,360,757	0.85%	18.45%
2003	0.20%	245,144		6.277993		1,539,012	1.02%	34.26%
JPMorgan IT – Mid Cap Growth Portfolio
2005	0.20%	23,694		15.932691		377,509	0.00%	10.87%
2004	0.20%	8,286		14.370472		119,074	0.00%	12.39%
2003	0.20%	4,483		12.785745		57,318	0.00%	26.89%
JPMorgan IT – Mid Cap Value Portfolio
2005	0.20%	22,284		16.592629		369,750	0.60%	9.54%
2004	0.20%	14,900		15.148180		225,708	0.58%	15.17%
2003	0.20%	7,236		13.153260		95,177	0.57%	32.49%
Neuberger Berman AMT – Guardian Portfolio – I Class Shares
2005	0.20%	234,680		12.237616		2,871,924	0.15%	8.18%
2004	0.20%	19,660		11.312789		222,409	0.12%	15.58%
2003	0.20%	30,298		9.787595		296,545	0.89%	31.50%
Neuberger Berman AMT – Mid Cap Growth Portfolio – I Class Shares
2005	0.20%	23,118		9.536717		220,470	0.00%	13.51%
2004	0.20%	470,456		8.401327		3,952,455	0.00%	16.08%
2003	0.20%	274,225		7.237810		1,984,788	0.00%	27.81%
Neuberger Berman AMT – Partners Portfolio® – I Class Shares
2004	0.20%	229,766		12.443485		2,859,090	0.01%	18.74%
2003	0.20%	14,991		10.479833		157,103	0.00%	34.82%
Neuberger Berman AMT – Fasciano Portfolio – S Class Shares
2005	0.20%	9,828		14.403227		141,555	0.00%	2.69%
2004	0.20%	4,062		14.025658		56,972	0.00%	11.65%
2003	0.20%	1,829		12.561832		22,976	0.00%	24.81%

(Continued)

80

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Oppenheimer Funds – Aggressive Growth Fund/VA – Initial Class
2005	0.20%	454,650	$	8.523068	$	3,875,013	0.00%	12.10%
2004	0.20%	260,230		7.602891		1,978,500	0.00%	19.54%
2003	0.20%	163,694		6.360255		1,041,136	0.00%	25.34%
Oppenheimer Funds – Capital Appreciation Fund/VA – Initial Class
2005	0.20%	1,970,560		9.618219		18,953,278	0.91%	4.89%
2004	0.20%	1,451,308		9.169906		13,308,358	0.31%	6.72%
2003	0.20%	710,846		8.592296		6,107,799	0.38%	30.68%
Oppenheimer Funds – Global Securities Fund/VA – Initial Class
2005	0.20%	1,091,788		12.662678		13,824,960	1.00%	14.08%
2004	0.20%	342,972		11.099865		3,806,943	1.15%	18.92%
2003	0.20%	78,177		9.333505		729,665	0.73%	42.73%
Oppenheimer Funds – Main Street Fund®/VA – Initial Class
2005	0.20%	185,032		10.844763		2,006,628	1.37%	5.76%
2004	0.20%	86,940		10.253671		891,454	0.83%	9.24%
2003	0.20%	50,314		9.386344		472,265	0.90%	26.47%
PIMCO VIT – Low Duration Portfolio – Administrative Shares
2005	0.20%	1,845,738		10.662435		19,680,061	2.71%	0.80%
2004	0.20%	2,001,144		10.577591		21,167,283	1.29%	1.64%
2003	0.20%	1,032,781		10.407346		10,748,509	1.22%	2.14%
PIMCO VIT – Real Return Portfolio – Administrative Shares
2005	0.20%	628,146		12.466336		7,830,679	2.85%	1.87%
2004	0.20%	225,144		12.237557		2,755,213	1.03%	8.67%
2003	0.20%	41,728		11.260965		469,898	2.35%	8.64%
PIMCO VIT – Total Return Portfolio – Administrative Shares
2005	0.20%	3,110,384		11.591132		36,052,872	3.47%	2.22%
2004	0.20%	1,390,690		11.339186		15,769,293	1.92%	4.67%
2003	0.20%	805,938		10.833078		8,730,789	2.71%	4.83%
Pioneer VCT – Pioneer High Yield VCT Portfolio – Class I Shares
2005	0.20%	438,236		15.069867		6,604,158	5.49%	1.74%
2004	0.20%	41,538		14.811836		615,254	5.59%	7.85%
2003	0.20%	38,729		13.734162		531,910	5.84%	32.52%
Royce Capital Fund – Royce Micro-Cap Portfolio
2005	0.20%	516,002		19.049333		9,829,494	0.60%	11.39%
2004	0.20%	251,888		17.101898		4,307,763	0.00%	13.62%
2003	0.20%	58,726		15.052067		883,948	0.00%	48.87%
T. Rowe Price – New America Growth Portfolio
2005	0.20%	690,950		11.269904		7,786,940	0.00%	4.26%
2004	0.20%	222,430		10.808909		2,404,226	0.00%	8.09%	05/03/04
T. Rowe Price II – Equity Income Portfolio – II
2005	0.20%	1,993,558		14.970390		29,844,341	1.39%	3.49%
2004	0.20%	1,400,944		14.465784		20,265,753	1.46%	14.39%
2003	0.20%	546,267		12.646299		6,908,256	1.80%	24.92%
T. Rowe Price II – Mid Cap Growth Fund – II
2005	0.20%	626,894		19.008705		11,916,443	0.00%	14.21%
2004	0.20%	835,584		16.643864		13,907,346	0.00%	17.82%
2003	0.20%	473,916		14.126799		6,694,916	0.00%	37.82%
Van Eck WIT – Worldwide Emerging Markets Fund – Initial Class
2005	0.20%	45,066		23.583541		1,062,816	0.71%	31.73%
2004	0.20%	120,164		17.902527		2,151,239	0.53%	25.64%
2003	0.20%	6,811		14.249147		97,051	0.11%	53.88%
Van Eck WIT – Worldwide Hard Assets Fund – Initial Class
2005	0.20%	52,740		26.310503		1,387,616	0.31%	51.37%
2004	0.20%	70,582		17.381825		1,226,844	0.31%	23.98%
2003	0.20%	17,418		14.048159		244,691	0.41%	44.79%
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I
2005	0.20%	227,212		19.427363		4,414,130	7.14%	12.03%
2004	0.20%	105,242		17.341685		1,825,074	7.52%	9.84%
2003	0.20%	3,595		15.787831		56,757	0.00%	27.61%

(Continued)

81

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Van Kampen UIF – Mid Cap Growth Portfolio – Class I
2005	0.20%	20,382	$	8.473005	$	172,697	0.00%	17.33%
2004	0.20%	98,272		7.221303		709,652	0.00%	21.35%
2003	0.20%	70,714		5.950642		420,794	0.00%	41.48%
Van Kampen UIF – U.S. Real Estate Portfolio – Class I
2005	0.20%	250,510		25.103798		6,288,752	1.19%	16.82%
2004	0.20%	98,428		21.489618		2,115,180	1.61%	36.12%
2003	0.20%	40,136		15.786980		633,626	0.00%	37.24%
Wells Fargo VTFSM – Wells Fargo Advantage Opportunity Fund VT
2005	0.20%	360,812		12.025433		4,338,921	0.00%	7.67%
2004	0.20%	266,180		11.168856		2,972,926	0.00%	17.98%
2003	0.20%	202,631		9.466409		1,918,188	0.08%	36.73%
The BEST of AMERICA® Corporate Variable Universal Life SeriesSM Reduced Fee Tier (0.25%)
AIM VIF – Basic Value Fund – Series I Shares
2005	0.25%	54,050		15.332927		828,745	0.09%	5.47%
2004	0.25%	98,126		14.537319		1,426,489	0.00%	10.79%
2003	0.25%	1,947		13.121262		25,547	0.06%	33.29%
AIM VIF – Capital Appreciation Fund – Series I Shares
2003	0.25%	2,553		13.251011		33,830	0.00%	35.02%
AIM VIF – Capital Development Fund – Series I Shares
2005	0.25%	93,372		16.691371		1,558,507	0.00%	9.33%
2004	0.25%	27,246		15.266666		415,956	0.00%	15.21%
AIM VIF – International Growth Fund – Series I Shares
2005	0.25%	202,258		14.021093		2,835,878	1.14%	17.63%
2004	0.25%	26,402		11.919243		314,692	1.36%	19.19%	05/03/04
Alliance VPSF – AllianceBernstein Growth & Income Portfolio – Class A
2005	0.25%	369,126		15.396687		5,683,317	1.48%	4.61%
2004	0.25%	426,728		14.718823		6,280,934	0.92%	11.18%
2003	0.25%	278,219		13.238290		3,683,144	0.51%	32.17%
American Century VP – Income & Growth Fund – Class I
2005	0.25%	284,088		11.300886		3,210,446	1.94%	4.37%
2004	0.25%	368,640		10.827688		3,991,519	1.37%	12.71%
2003	0.25%	225,657		9.606659		2,167,810	1.28%	29.03%
2002	0.25%	1,435		7.445299		10,684	1.00%	-19.57%
American Century VP – International Fund – Class I
2005	0.25%	882,458		9.488028		8,372,786	1.25%	12.97%
2004	0.25%	923,768		8.398563		7,758,324	0.56%	14.64%
2003	0.25%	674,427		7.326221		4,941,001	0.73%	24.20%
2002	0.25%	49,356		5.898746		291,139	0.78%	-20.57%
American Century VP – Ultra® Fund – Class I
2005	0.25%	252,658		11.248731		2,842,082	0.00%	1.91%
2004	0.25%	212,496		11.037791		2,345,486	0.00%	10.40%
2003	0.25%	138,103		9.998079		1,380,765	0.00%	24.59%
American Century VP – Value Fund – Class I
2005	0.25%	496,994		15.934364		7,919,283	0.83%	4.77%
2004	0.25%	351,012		15.208626		5,338,410	0.97%	14.05%
2003	0.25%	248,298		13.335325		3,311,135	1.04%	28.64%
2002	0.25%	90,011		10.366670		933,114	0.75%	-12.84%
American Century VP – VistaSM Fund – Class I
2005	0.25%	248		11.444645		2,838	0.00%	14.45%	05/02/05
Baron Capital Funds Trust IS – Baron Capital Asset Fund: Insurance Shares
2005	0.25%	304,012		16.253697		4,941,319	0.00%	3.11%
2004	0.25%	84,614		15.763932		1,333,849	0.00%	25.33%
2003	0.25%	17,272		12.578424		217,255	0.00%	29.69%
Calvert VS – Social Equity Portfolio
2005	0.25%	1,152		13.973029		16,097	0.06%	4.28%
2004	0.25%	826		13.399142		11,068	0.08%	6.89%

(Continued)

82

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Credit Suisse Trust – Global Small Cap Portfolio
2005	0.25%	15,838	$	9.661761	$	153,023	0.00%	15.85%
2004	0.25%	25,520		8.339563		212,826	0.00%	17.69%
2003	0.25%	30,888		7.085747		218,865	0.00%	47.29%
2002	0.25%	1,104		4.810802		5,311	0.00%	-34.32%
Credit Suisse Trust – International Focus Portfolio
2005	0.25%	7,410		11.321642		83,893	0.88%	17.15%
2004	0.25%	13,758		9.664537		132,965	0.99%	14.46%
2003	0.25%	17,161		8.443905		144,906	0.49%	32.76%
Credit Suisse Trust – Large Cap Value Portfolio
2005	0.25%	2,276		12.352874		28,115	0.73%	7.87%
2004	0.25%	16,952		11.451229		194,121	0.58%	11.07%
2003	0.25%	15,477		10.310367		159,574	0.76%	24.85%
2002	0.25%	5,253		8.258105		43,380	0.76%	-23.29%
Dreyfus IP – Mid Cap Stock Portfolio – Initial Shares
2005	0.25%	20,998		16.292721		342,115	0.02%	8.90%
2004	0.25%	41,246		14.961281		617,093	0.43%	14.19%
2003	0.25%	647		13.102225		8,477	1.02%	31.39%
Dreyfus IP – Small Cap Stock Index Portfolio – Service Class
2005	0.25%	162,720		13.695264		2,228,493	0.00%	6.97%
2004	0.25%	376,014		12.803427		4,814,268	0.57%	21.58%
2003	0.25%	145,429		10.530847		1,531,491	0.27%	37.44%
Dreyfus Investor, Inc. – Dreyfus Stock Index Fund, Inc. – Initial Shares
2005	0.25%	8,079,650		10.058674		81,270,565	1.63%	4.43%
2004	0.25%	5,809,448		9.631920		55,956,138	1.82%	10.36%
2003	0.25%	4,843,218		8.727408		42,268,740	1.54%	28.04%
2002	0.25%	529,695		6.815999		3,610,401	1.45%	-22.56%
Dreyfus Investor, Inc. – The Dreyfus Socially Responsible Growth Fund, Inc.
2005	0.25%	101,932		7.541951		768,766	0.00%	3.36%
2004	0.25%	154,666		7.296964		1,128,592	0.40%	5.95%
2003	0.25%	71,544		6.887482		492,758	0.11%	25.69%
2002	0.25%	425		5.479795		2,329	0.22%	-29.12%
Dreyfus VIF – Appreciation Portfolio – Initial Shares
2005	0.25%	561,480		9.907772		5,563,016	0.02%	4.12%
2004	0.25%	555,430		9.515935		5,285,436	1.67%	4.78%
2003	0.25%	487,461		9.081512		4,426,883	1.18%	20.87%
2002	0.25%	48,950		7.513649		367,793	1.22%	-16.92%
Dreyfus VIF – International Value Portfolio – Initial Shares
2005	0.25%	640,638		17.142660		10,982,239	0.00%	11.61%
2004	0.25%	481,030		15.359280		7,388,274	1.23%	19.72%
2003	0.25%	561,722		12.829044		7,206,356	2.67%	36.02%
Federated IS – Quality Bond Fund II – Primary Shares
2005	0.25%	1,963,430		13.902748		27,297,073	3.55%	1.05%
2004	0.25%	1,438,890		13.758938		19,797,598	3.92%	3.36%
2003	0.25%	204,710		13.311504		2,724,998	3.30%	4.38%
2002	0.25%	55,859		12.752372		712,335	3.20%	9.03%
VIP – Equity-Income Portfolio: Service Class
2005	0.25%	1,459,748		12.439919		18,159,147	1.56%	5.49%
2004	0.25%	1,061,120		11.792032		12,512,761	1.39%	11.10%
2003	0.25%	374,570		10.613484		3,975,493	1.66%	29.89%
2002	0.25%	244,789		8.170844		2,000,133	1.50%	-17.20%
Fidelity® VIP – Growth Portfolio: Service Class
2005	0.25%	2,214,058		8.234853		18,232,442	0.41%	5.41%
2004	0.25%	1,835,224		7.812236		14,337,203	0.16%	3.01%
2003	0.25%	585,819		7.584268		4,443,008	0.18%	32.45%
2002	0.25%	78,608		5.726150		450,121	0.14%	-30.37%
Fidelity® VIP – High Income Portfolio: Service Class
2005	0.25%	195,986		13.118317		2,571,006	14.70%	2.27%
2004	0.25%	593,920		12.827432		7,618,468	8.03%	9.19%
2003	0.25%	93,070		11.747355		1,093,326	6.36%	26.65%
2002	0.25%	606		9.275222		5,621	9.18%	3.36%

(Continued)

83

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Fidelity® VIP – Overseas Portfolio: Service Class
2005	0.25%	742,572	$	12.002567	$	8,912,770	0.56%	18.67%
2004	0.25%	460,116		10.113816		4,653,529	0.98%	13.20%
2003	0.25%	301,169		8.934131		2,690,683	0.63%	42.85%
2002	0.25%	1,213		6.254343		7,587	0.64%	-20.54%
Fidelity® VIP II – Contrafund® Portfolio: Service Class
2005	0.25%	1,766,496		14.013727		24,755,193	0.19%	16.56%
2004	0.25%	970,084		12.023156		11,663,471	0.24%	15.05%
2003	0.25%	964,994		10.450250		10,084,429	0.30%	28.03%
2002	0.25%	7,198		8.162207		58,752	0.69%	-9.65%
Fidelity® VIP II – Investment Grade Bond Portfolio: Service Class
2005	0.25%	33,064		10.808463		357,371	2.69%	1.83%
Fidelity® VIP III – Growth Opportunities Portfolio: Service Class
2005	0.25%	326,516		10.048055		3,280,851	0.84%	8.59%
2004	0.25%	451,498		9.253175		4,177,790	0.48%	6.79%
2003	0.25%	197,613		8.664666		1,712,251	0.59%	29.34%
2002	0.25%	794		6.699267		5,319	0.93%	-22.11%
Fidelity® VIP III – Mid Cap Portfolio: Service Class
2005	0.25%	159,618		20.635857		3,293,854	0.00%	17.91%
Fidelity® VIP III – Value Strategies Portfolio: Service Class
2005	0.25%	884		13.725157		12,133	0.00%	2.30%
2004	0.25%	29,960		13.416717		401,965	0.00%	13.70%
2003	0.25%	15,729		11.799819		185,599	0.00%	57.40%
Franklin Templeton VIP II – Franklin Small Cap Value Securities Fund – Class 2
2005	0.25%	11,480		11.351855		130,319	0.00%	13.52%	05/02/05
Franklin Templeton VIP II – Templeton Foreign Securities Fund – Class 2
2005	0.25%	241,412		16.242222		3,921,067	1.12%	9.89%
2004	0.25%	173,760		14.779865		2,568,149	1.11%	18.23%
2003	0.25%	9,405		12.500683		117,569	1.96%	31.88%
Gartmore GVIT – Dreyfus Mid Cap Index Fund – Class I
2005	0.25%	613,462		15.479497		9,496,083	1.04%	11.82%
2004	0.25%	317,498		13.843332		4,395,230	0.56%	15.44%
2003	0.25%	70,843		11.991494		849,513	0.50%	34.31%
2002	0.25%	1,993		8.927901		17,793	0.45%	-15.51%
Gartmore GVIT – Emerging Markets Fund: Class I
2005	0.25%	198,760		18.292860		3,635,889	0.60%	32.31%
2004	0.25%	68,036		13.826171		940,677	1.04%	20.44%
2003	0.25%	14,303		11.479519		164,192	0.61%	64.85%
Gartmore GVIT – Federated High Income Bond Fund: Class I
2005	0.25%	204,814		15.079557		3,088,504	6.92%	2.13%
2004	0.25%	157,482		14.765731		2,325,337	7.58%	9.82%
2003	0.25%	33,606		13.445225		451,840	7.99%	21.97%
2002	0.25%	47,160		11.023733		519,879	10.09%	2.97%
Gartmore GVIT – Global Financial Services Fund: Class I
2005	0.25%	24,048		16.330978		392,727	2.00%	10.87%
2004	0.25%	8,572		14.729262		126,259	1.37%	20.69%
2003	0.25%	958		12.207124		11,694	1.08%	41.10%
Gartmore GVIT – Global Health Sciences Fund: Class I
2005	0.25%	27,596		13.212593		364,615	0.00%	8.17%
2004	0.25%	24,814		12.214711		303,096	0.00%	7.59%
2003	0.25%	9,013		11.352997		102,325	0.00%	36.35%
Gartmore GVIT – Global Technology and Communications Fund: Class I
2005	0.25%	262,362		3.135604		822,663	0.00%	-0.76%
2004	0.25%	674,980		3.159750		2,132,768	0.00%	4.05%
2003	0.25%	118,132		3.036698		358,731	0.00%	54.84%
Gartmore GVIT – Global Utilities Fund: Class I
2005	0.25%	15,934		14.758947		235,169	2.09%	6.12%
2004	0.25%	17,668		13.907406		245,716	1.64%	29.64%
2003	0.25%	1,187		10.727488		12,734	1.02%	23.74%

(Continued)

84

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Gartmore GVIT – Government Bond Fund: Class I
2005	0.25%	3,496,292	$	13.025536	$	45,541,077	3.71%	3.01%
2004	0.25%	2,572,680		12.645377		32,532,509	5.38%	3.00%
2003	0.25%	1,556,780		12.276554		19,111,894	3.25%	1.75%
2002	0.25%	1,141,119		12.065916		13,768,646	4.66%	10.71%
Gartmore GVIT – Growth Fund – Class I
2005	0.25%	40,952		7.559516		309,577	0.08%	6.24%
2004	0.25%	73,454		7.115834		522,686	0.34%	7.89%
2003	0.25%	76,188		6.595662		502,510	0.02%	32.41%
2002	0.25%	49,665		4.981328		247,398	0.00%	-28.90%
Gartmore GVIT – International Growth Fund: Class I
2005	0.25%	54,480		9.969281		543,126	1.10%	29.89%
2004	0.25%	28,960		7.675467		222,282	0.85%	13.91%
2003	0.25%	4,806		6.738255		32,384	0.00%	35.28%
2002	0.25%	65		4.980814		324	0.00%	-24.29%
Gartmore GVIT – J.P. Morgan Balanced Fund – Class I
2005	0.25%	234,374		11.127198		2,607,926	1.98%	2.29%
2004	0.25%	138,252		10.878396		1,503,960	1.94%	8.22%
2003	0.25%	86,171		10.052086		866,198	1.76%	18.12%
2002	0.25%	1,233		8.510165		10,493	2.28%	-12.53%
Gartmore GVIT – Mid Cap Growth Fund: Class I
2005	0.25%	161,102		8.720733		1,404,928	0.00%	9.47%
2004	0.25%	989,792		7.966452		7,885,130	0.00%	15.05%
2003	0.25%	74,105		6.924341		513,128	0.00%	39.79%
2002	0.25%	5,143		4.953560		25,476	0.00%	-37.17%
Gartmore GVIT – Money Market Fund – Class I
2005	0.25%	997,352		10.838856		10,810,155	2.61%	2.41%
2004	0.25%	877,048		10.583572		9,282,301	0.80%	0.56%
2003	0.25%	2,168,315		10.524702		22,820,869	0.63%	0.37%
2002	0.25%	1,395,229		10.485477		14,629,642	1.51%	0.96%
Gartmore GVIT – Nationwide® Fund: Class I
2005	0.25%	230,206		10.885739		2,505,962	1.00%	7.17%
2004	0.25%	200,466		10.157086		2,036,150	1.30%	9.48%
2003	0.25%	49,376		9.277816		458,101	0.59%	27.19%
2002	0.25%	588		7.294217		4,289	0.95%	-17.56%
Gartmore GVIT – Nationwide® Leaders Fund: Class I
2005	0.25%	8,298		13.761286		114,191	1.29%	10.04%
2004	0.25%	13,762		12.506076		172,109	0.48%	18.50%
2003	0.25%	1,148		10.553942		12,116	0.15%	25.07%
Gartmore GVIT – Nationwide® Strategic Value Fund – Class I
2003	0.25%	22,022		10.567653		232,721	0.04%	38.46%
2002	0.25%	42		7.632212		321	0.03%	-25.55%
Gartmore GVIT – Small Cap Growth Fund: Class I
2005	0.25%	186,986		16.548582		3,094,353	0.00%	7.82%
2004	0.25%	283,520		15.348222		4,351,528	0.00%	13.13%
2003	0.25%	59,176		13.566592		802,817	0.00%	33.93%
2002	0.25%	209		10.129586		2,117	0.00%	-33.45%
Gartmore GVIT – Small Cap Value Fund: Class I
2005	0.25%	848,398		18.812416		15,960,416	0.07%	2.82%
2004	0.25%	557,634		18.297168		10,203,123	0.00%	17.01%
2003	0.25%	258,610		15.637860		4,044,107	0.00%	56.46%
2002	0.25%	89,722		9.994656		896,741	0.01%	-27.34%
Gartmore GVIT – Small Company Fund: Class I
2005	0.25%	1,912,752		15.666008		29,965,188	0.00%	12.04%
2004	0.25%	766,554		13.982897		10,718,646	0.00%	18.72%
2003	0.25%	492,798		11.777552		5,803,954	0.00%	40.66%
2002	0.25%	98,835		8.373012		827,547	0.00%	-17.54%
Gartmore GVIT – Turner Growth Focus Fund – Class I
2003	0.25%	23,948		3.309832		79,264	0.00%	50.59%

(Continued)

85

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Gartmore GVIT – U.S. Growth Leaders Fund: Class I
2005	0.25%	80,480	$	15.607398	$	1,256,083	0.00%	11.68%
2004	0.25%	50,246		13.974657		702,171	0.00%	12.13%
2003	0.25%	33,465		12.463103		417,078	0.00%	51.76%
Gartmore GVIT – Van Kampen Multi Sector Bond Fund – Class I
2005	0.25%	483,160		13.919206		6,725,204	3.99%	1.93%
2004	0.25%	63,742		13.656231		870,475	4.55%	6.27%
2003	0.25%	515,327		12.850783		6,622,355	5.42%	11.84%
2002	0.25%	42,803		11.490701		491,836	4.49%	6.94%
Gartmore GVIT – Van Kampen Value Fund – Class I
2005	0.25%	42,010		10.701838		449,584	1.61%	3.99%
2004	0.25%	36,102		10.291496		371,544	1.39%	17.21%
2003	0.25%	3,887		8.780739		34,131	1.34%	31.11%
Gartmore GVIT – Worldwide Leaders Fund: Class I
2005	0.25%	12,984		11.593174		150,526	1.11%	19.04%
2004	0.25%	34,068		9.738860		331,783	0.00%	15.38%
2003	0.25%	34,022		8.440937		287,178	0.00%	35.72%
2002	0.25%	85		6.219415		529	2.00%	-25.58%
Gartmore GVIT V – Money Market Fund: Class V
2005	0.25%	5,577,142		10.380057		57,891,052	2.74%	2.49%
2004	0.25%	9,126,608		10.127388		92,428,700	0.91%	0.64%
2003	0.25%	1,814,317		10.063117		18,257,684	0.70%	0.45%
2002	0.25%	656		10.017601		6,572	0.28%	0.18%	10/21/2002
Gartmore GVIT ID II – Aggressive Fund – Class II
2005	0.25%	24,354		13.389188		326,080	2.02%	7.66%
2004	0.25%	14,712		12.436282		182,963	1.85%	13.74%
2003	0.25%	4,309		10.933839		47,114	1.57%	31.54%
Gartmore GVIT ID II – Conservative Fund – Class II
2005	0.25%	4,440		11.610294		51,550	2.49%	3.05%
2004	0.25%	6,398		11.266714		72,084	2.49%	4.39%
2003	0.25%	929		10.792806		10,027	2.59%	7.64%
Gartmore GVIT ID II – Moderate Fund – Class II
2005	0.25%	31,934		12.537840		400,383	2.39%	5.08%
2004	0.25%	18,974		11.931529		226,389	2.21%	9.26%
2003	0.25%	7,829		10.920096		85,493	2.05%	19.75%
Gartmore GVIT ID II – Moderately Aggressive Fund – Class II
2005	0.25%	80,236		13.075926		1,049,160	2.19%	6.81%
2004	0.25%	90,230		12.242773		1,104,665	2.01%	11.81%
2003	0.25%	3,797		10.949354		41,575	1.61%	26.33%
Gartmore GVIT ID II – Moderately Conservative Fund – Class II
2005	0.25%	151,626		12.155154		1,843,037	2.78%	4.23%
2004	0.25%	21,136		11.662359		246,496	2.38%	6.89%
2003	0.25%	2,613		10.910488		28,509	2.33%	13.41%
Goldman Sachs VIT – Mid Cap Value Fund
2005	0.25%	792,502		17.885426		14,174,236	0.60%	12.54%
2004	0.25%	315,450		15.891856		5,013,086	0.74%	25.57%
2003	0.25%	259,089		12.655709		3,278,955	1.72%	28.07%
Janus AS – Balanced Portfolio – Service Shares
2005	0.25%	53,532		13.210934		707,208	2.04%	7.39%
2004	0.25%	53,754		12.301545		661,257	2.45%	8.02%
2003	0.25%	14,950		11.387925		170,249	2.34%	13.44%
Janus AS – Forty Portfolio – Service Shares
2005	0.25%	1,090,640		8.514303		9,286,039	0.01%	12.28%
2004	0.25%	956,584		7.583386		7,254,146	0.02%	17.67%
2003	0.25%	677,613		6.444456		4,366,847	0.25%	19.93%
2002	0.25%	318		5.373376		1,709	0.32%	-16.14%

(Continued)

86

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Janus AS – Global Technology Portfolio – Service Shares
2005	0.25%	229,560	$	3.945872	$	905,814	0.00%	11.27%
2004	0.25%	204,340		3.546168		724,624	0.00%	0.32%
2003	0.25%	97,833		3.535026		345,842	0.00%	46.11%
2002	0.25%	708		2.419456		1,713	0.00%	-41.08%
Janus AS – International Growth Portfolio – Service Shares
2005	0.25%	882,786		9.762789		8,618,453	1.05%	31.61%
2004	0.25%	680,002		7.417926		5,044,205	0.85%	18.39%
2003	0.25%	92,562		6.265664		579,962	1.02%	34.20%
2002	0.25%	905		4.668998		4,225	0.70%	-25.94%
JPMorgan IT – Mid Cap Growth Portfolio
2005	0.25%	75,420		15.906622		1,199,677	0.00%	10.82%
2004	0.25%	82,778		14.354104		1,188,204	0.00%	12.34%
2003	0.25%	6,068		12.777560		77,534	0.00%	26.83%
JPMorgan IT – Mid Cap Value Portfolio
2005	0.25%	10,644		16.565444		176,323	0.60%	9.48%
2004	0.25%	22,074		15.130897		333,999	0.58%	15.11%
2003	0.25%	1,068		13.144807		14,039	0.57%	32.42%
Lord Abbett Series Mid Cap Value Fund – VC
2005	0.25%	19,122		11.270434		215,513	0.52%	12.70%	05/02/05
Merrill Lynch – FAM VSF II – Mercury International Index Portfolio – Class II
2005	0.25%	732		11.632654		8,515	1.76%	16.33%	05/02/05
Mercury II – Large Cap Core VIF – Class II
2005	0.25%	101,208		11.577932		1,171,779	0.74%	15.78%	05/02/05
Neuberger Berman AMT – Guardian Portfolio – I Class Shares
2005	0.25%	75,766		12.206553		924,842	0.15%	8.12%
2004	0.25%	91,408		11.289714		1,031,970	0.12%	15.53%
2003	0.25%	52,239		9.772505		510,506	0.89%	31.43%
2002	0.25%	535		7.435383		3,978	0.75%	-26.63%
Neuberger Berman AMT – Mid Cap Growth Portfolio – I Class Shares
2005	0.25%	365,056		9.512489		3,472,591	0.00%	13.46%
2004	0.25%	678,994		8.384158		5,692,793	0.00%	16.02%
2003	0.25%	284,185		7.226636		2,053,702	0.00%	27.75%
2002	0.25%	217,507		5.656826		1,230,399	0.00%	-29.52%
Neuberger Berman AMT – Partners Portfolio® – I Class Shares
2005	0.25%	84,180		14.622460		1,230,919	0.98%	17.75%
2004	0.25%	191,928		12.418080		2,383,377	0.01%	18.68%
2003	0.25%	44,110		10.463664		461,552	0.00%	34.75%
2002	0.25%	53,464		7.765195		415,158	0.54%	-24.33%
Neuberger Berman AMT – Fasciano Portfolio – S Class Shares
2005	0.25%	15,290		14.379334		219,860	0.00%	2.64%
2004	0.25%	22,204		14.009370		311,064	0.00%	11.60%
2003	0.25%	3,926		12.553503		49,285	0.00%	24.75%
Oppenheimer Funds – Aggressive Growth Fund/VA – Initial Class
2005	0.25%	1,772,498		8.501413		15,068,738	0.00%	12.05%
2004	0.25%	1,726,784		7.587355		13,101,723	0.00%	19.48%
2003	0.25%	809,116		6.350438		5,138,241	0.00%	25.28%
2002	0.25%	11,391		5.069121		57,742	0.63%	-27.97%
Oppenheimer Funds – Capital Appreciation Fund/VA – Initial Class
2005	0.25%	3,734,142		9.593805		35,824,630	0.91%	4.84%
2004	0.25%	1,591,142		9.151191		14,560,844	0.31%	6.67%
2003	0.25%	503,219		8.579039		4,317,135	0.38%	30.62%
2002	0.25%	345,299		6.568116		2,267,964	0.57%	-27.04%
Oppenheimer Funds – Global Securities Fund/VA – Initial Class
2005	0.25%	1,169,740		12.626867		14,770,151	1.00%	14.02%
2004	0.25%	436,776		11.073978		4,836,848	1.15%	18.87%
2003	0.25%	162,279		9.316393		1,511,855	0.73%	42.66%
2002	0.25%	228,358		6.530337		1,491,255	0.55%	-22.33%

(Continued)

87

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Oppenheimer Funds – Main Street Fund®/VA – Initial Class
2005	0.25%	381,782	$	10.817217	$	4,129,819	1.37%	5.71%
2004	0.25%	192,090		10.232719		1,965,603	0.83%	9.19%
2003	0.25%	264,755		9.371848		2,481,244	0.90%	26.40%
2002	0.25%	1,058		7.414306		7,844	0.75%	-19.00%
PIMCO VIT – All Asset Portfolio – Administrative Shares
2005	0.25%	287,514		11.877133		3,414,842	4.94%	5.96%
2004	0.25%	10,938		11.208609		122,600	6.86%	12.09%	05/03/04
PIMCO VIT – Low Duration Portfolio – Administrative Shares
2005	0.25%	747,294		10.644694		7,954,716	2.71%	0.75%
2004	0.25%	554,690		10.565271		5,860,450	1.29%	1.58%
2003	0.25%	1,496,037		10.400435		15,559,436	1.22%	2.09%
PIMCO VIT – Real Return Portfolio – Administrative Shares
2005	0.25%	1,206,896		12.445521		15,020,450	2.85%	1.82%
2004	0.25%	309,916		12.223233		3,788,175	1.03%	8.62%
2003	0.25%	73,396		11.253423		825,956	2.35%	8.58%
PIMCO VIT – Total Return Portfolio – Administrative Shares
2005	0.25%	2,083,246		11.571785		24,106,875	3.47%	2.17%
2004	0.25%	1,511,060		11.325918		17,114,142	1.92%	4.62%
2003	0.25%	1,182,357		10.825824		12,799,989	2.71%	4.78%
2002	0.25%	165		10.331952		1,705	0.98%	3.32%	08/30/02
Pioneer VCT – Pioneer High Yield VCT Portfolio – Class I Shares
2005	0.25%	36,528		15.044787		549,556	5.49%	1.69%
2004	0.25%	53,634		14.794578		793,492	5.59%	7.79%
2003	0.25%	379,007		13.725038		5,201,885	5.84%	32.45%
2002	0.25%	162		10.362072		1,679	1.76%	3.62%	9/30/2002
Royce Capital Fund – Royce Micro-Cap Portfolio
2005	0.25%	690,136		19.017724		13,124,816	0.60%	11.33%
2004	0.25%	271,392		17.082044		4,635,930	0.00%	13.56%
2003	0.25%	85,061		15.042113		1,279,497	0.00%	48.79%
T. Rowe Price – New America Growth Portfolio
2005	0.25%	2,404		11.260565		27,070	0.00%	4.21%
2004	0.25%	560		10.805340		6,051	0.00%	8.05%	05/03/04
T. Rowe Price II – Equity Income Portfolio – II
2005	0.25%	892,058		14.945544		13,332,292	1.39%	3.44%
2004	0.25%	366,698		14.448971		5,298,409	1.46%	14.33%
2003	0.25%	167,637		12.637920		2,118,583	1.80%	24.86%
T. Rowe Price II – Mid Cap Growth Fund – II
2005	0.25%	356,418		18.977178		6,763,808	0.00%	14.15%
2004	0.25%	179,746		16.624542		2,988,195	0.00%	17.76%
2003	0.25%	279,141		14.117448		3,940,759	0.00%	37.75%
Van Eck WIT – Worldwide Emerging Markets Fund – Initial Class
2005	0.25%	41,596		23.523647		978,490	0.71%	31.67%
2004	0.25%	212,994		17.865954		3,805,341	0.53%	25.58%
2003	0.25%	38,302		14.227140		544,928	0.11%	53.80%
2002	0.25%	399		9.250254		3,691	0.21%	-3.14%
Van Eck WIT – Worldwide Hard Assets Fund – Initial Class
2005	0.25%	129,856		26.243783		3,407,913	0.31%	51.29%
2004	0.25%	31,156		17.346378		540,444	0.31%	23.92%
2003	0.25%	12,374		14.026509		173,564	0.41%	44.72%
2002	0.25%	497		9.692423		4,817	0.75%	-3.08%
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I
2005	0.25%	48,476		19.378063		939,371	7.14%	11.97%
2004	0.25%	37,344		17.306300		646,286	7.52%	9.79%
2003	0.25%	68,138		15.763497		1,074,093	0.00%	27.55%
2002	0.25%	83		12.359143		1,026	8.74%	8.95%

(Continued)

88

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Van Kampen UIF – Mid Cap Growth Portfolio – Class I
2005	0.25%	144,664	$	8.449046	$	1,222,273	0.00%	17.28%
2004	0.25%	137,920		7.204463		993,640	0.00%	21.29%
2003	0.25%	74,914		5.939719		444,968	0.00%	41.41%
2002	0.25%	354		4.200344		1,487	0.00%	-31.33%
Van Kampen UIF – U.S. Real Estate Portfolio – Class I
2005	0.25%	546,448		25.040093		13,683,109	1.19%	16.76%
2004	0.25%	352,704		21.445777		7,564,011	1.61%	36.05%
2003	0.25%	151,526		15.762653		2,388,452	0.00%	37.17%
2002	0.25%	770		11.491482		8,848	4.01%	-1.03%
Wells Fargo VTFSM – Wells Fargo Advantage Opportunity Fund VT
2005	0.25%	470,806		11.991404		5,645,625	0.00%	7.62%
2004	0.25%	469,872		11.142802		5,235,691	0.00%	17.93%
2003	0.25%	169,629		9.449055		1,602,834	0.08%	36.66%
2002	0.25%	182,111		6.914071		1,259,128	0.50%	-27.00%
The BEST of AMERICA® Corporate Variable Universal Life SeriesSM Reduced Fee Tier (0.40%)
AIM VIF – Basic Value Fund – Series I Shares
2005	0.40%	44,502		15.256716		678,954	0.09%	5.32%
2004	0.40%	73,606		14.486704		1,066,308	0.00%	10.63%
2003	0.40%	82,900		13.095200		1,085,592	0.06%	33.09%
2002	0.40%	39,881		9.839124		392,394	0.00%	-1.61%	09/03/02
AIM VIF – Capital Appreciation Fund – Series I Shares
2003	0.40%	13,547		13.224712		179,155	0.00%	34.82%
2002	0.40%	24		9.809368		235	0.00%	-1.91%	09/03/02
AIM VIF – Capital Development Fund – Series I Shares
2005	0.40%	247,510		16.608430		4,110,753	0.00%	9.17%
2004	0.40%	59,864		15.213529		910,743	0.00%	15.04%
AIM VIF – International Growth Fund – Series I Shares
2005	0.40%	457,728		13.986284		6,401,914	1.14%	17.46%
2004	0.40%	152,296		11.907437		1,813,455	1.36%	19.07%	05/03/04
Alliance VPSF – AllianceBernstein Growth & Income Portfolio – Class A
2005	0.40%	386,306		15.320186		5,918,280	1.48%	4.45%
2004	0.40%	309,918		14.667608		4,545,756	0.92%	11.02%
2003	0.40%	246,983		13.212012		3,263,142	0.51%	31.97%
2002	0.40%	5,432		10.011053		54,380	0.00%	0.11%	09/03/02
American Century VP – Income & Growth Fund – Class I
2005	0.40%	1,326		12.625722		16,742	1.94%	4.21%
2004	0.40%	177,026		12.115153		2,144,697	1.37%	12.54%
2003	0.40%	350,297		10.765053		3,770,966	1.28%	28.84%
2002	0.40%	2,529,796		8.355578		21,137,908	1.00%	-19.69%
2001	0.40%	1,861,201		10.404509		19,364,883	0.85%	-8.72%
American Century VP – International Fund – Class I
2005	0.40%	243,536		11.844974		2,884,678	1.25%	12.80%
2004	0.40%	1,074,540		10.500552		11,283,263	0.56%	14.47%
2003	0.40%	2,984,336		9.173579		27,377,042	0.73%	24.01%
2002	0.40%	2,893,353		7.397247		21,402,847	0.78%	-20.69%
2001	0.40%	1,918,932		9.326990		17,897,860	0.08%	-29.46%
American Century VP – Ultra® Fund – Class I
2005	0.40%	28,284		11.187064		316,415	0.00%	1.76%
2004	0.40%	102,910		10.993709		1,131,363	0.00%	10.23%
2003	0.40%	79,186		9.973091		789,729	0.00%	24.40%
2002	0.40%	4,655		8.016962		37,319	0.66%	-19.83%	05/01/02
American Century VP – Value Fund – Class I
2005	0.40%	371,836		16.301854		6,061,616	0.83%	4.62%
2004	0.40%	572,678		15.582659		8,923,846	0.97%	13.88%
2003	0.40%	835,035		13.683795		11,426,448	1.04%	28.44%
2002	0.40%	872,044		10.653510		9,290,329	0.75%	-12.97%
2001	0.40%	428,754		12.241061		5,248,404	0.60%	12.37%

(Continued)

89

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
American Century VP – VistaSM Fund – Class I
2005	0.40%	596	$	11.433293	$	6,814	0.00%	14.33%	05/02/05
Baron Capital Funds Trust IS – Baron Capital Asset Fund: Insurance Shares
2005	0.40%	191,636		16.172933		3,099,316	0.00%	2.95%
2004	0.40%	171,058		15.709055		2,687,160	0.00%	25.14%
2003	0.40%	107,132		12.553439		1,344,875	0.00%	29.49%
2002	0.40%	7,134		9.694252		69,159	0.00%	-3.06%	09/03/02
Calvert VS – Social Equity Portfolio
2005	0.40%	428		13.903575		5,951	0.06%	4.13%
2004	0.40%	6,064		13.352495		80,970	0.08%	6.73%
2003	0.40%	1,076		12.510533		13,461	0.01%	21.69%
Credit Suisse Trust – Global Small Cap Portfolio
2002	0.40%	27,170		5.555805		150,951	0.00%	-34.42%
2001	0.40%	25,001		8.471776		211,803	0.00%	-28.92%
Credit Suisse Trust – International Focus Portfolio
2002	0.40%	32,357		6.196425		200,498	0.00%	-20.22%
2001	0.40%	39,874		7.767318		309,714	0.00%	-22.59%
Credit Suisse Trust – Large Cap Value Portfolio
2003	0.40%	17,547		10.955988		192,245	0.76%	24.66%
2002	0.40%	45,124		8.788383		396,567	0.76%	-23.40%
2001	0.40%	140,668		11.473418		1,613,943	0.00%	0.54%
Dreyfus IP – European Equity Portfolio
2001	0.40%	30,039		9.025727		271,124	0.79%	-28.42%
Dreyfus IP – Mid Cap Stock Portfolio – Initial Shares
2005	0.40%	9,248		16.211755		149,926	0.02%	8.74%
2004	0.40%	25,166		14.909204		375,205	0.43%	14.02%
2003	0.40%	58,097		13.076217		759,689	1.02%	31.20%
2002	0.40%	2,842		9.966854		28,326	0.60%	-0.33%	09/03/02
Dreyfus IP – Small Cap Stock Index Portfolio – Service Class
2005	0.40%	434,388		13.620186		5,916,445	0.00%	6.81%
2004	0.40%	164,998		12.752292		2,104,103	0.57%	21.40%
2003	0.40%	61,690		10.504526		648,024	0.27%	37.23%
2002	0.40%	5,221		7.654697		39,965	0.29%	-23.45%	05/01/02
Dreyfus Investor, Inc. – Dreyfus Stock Index Fund, Inc. – Initial Shares
2005	0.40%	3,928,314		11.896207		46,732,037	1.63%	4.27%
2004	0.40%	6,072,526		11.408542		69,278,668	1.82%	10.20%
2003	0.40%	9,284,780		10.352696		96,122,505	1.54%	27.85%
2002	0.40%	14,027,919		8.097446		113,590,317	1.45%	-22.67%
2001	0.40%	10,538,036		10.471621		110,350,319	1.14%	-12.53%
Dreyfus Investor, Inc. – The Dreyfus Socially Responsible Growth Fund, Inc.
2005	0.40%	734		9.567773		7,023	0.00%	3.20%
2004	0.40%	21,434		9.270823		198,711	0.40%	5.79%
2003	0.40%	114,903		8.763701		1,006,976	0.11%	25.50%
2002	0.40%	368,609		6.983004		2,573,998	0.22%	-29.23%
2001	0.40%	556,416		9.867078		5,490,200	0.08%	-22.89%
Dreyfus VIF – Appreciation Portfolio – Initial Shares
2005	0.40%	471,228		11.912967		5,613,724	0.02%	3.96%
2004	0.40%	504,718		11.458946		5,783,536	1.67%	4.63%
2003	0.40%	830,526		10.952239		9,096,119	1.18%	20.69%
2002	0.40%	1,866,807		9.074997		16,941,268	1.22%	-17.05%
2001	0.40%	1,760,221		10.939900		19,256,642	0.90%	-9.67%
Dreyfus VIF – International Value Portfolio – Initial Shares
2005	0.40%	369,294		17.057481		6,299,225	0.00%	11.44%
2004	0.40%	507,212		15.305834		7,763,303	1.23%	19.54%
2003	0.40%	146,661		12.803571		1,877,785	2.67%	35.81%
2002	0.40%	7,620		9.427437		71,837	0.37%	-5.73%	09/03/02

(Continued)

90

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Federated IS – Quality Bond Fund II – Primary Shares
2005	0.40%	592,368	$	13.764550	$	8,153,679	3.55%	0.89%
2004	0.40%	1,333,708		13.642560		18,195,191	3.92%	3.21%
2003	0.40%	2,418,929		13.218733		31,975,177	3.30%	4.23%
2002	0.40%	2,571,167		12.682507		32,608,843	3.20%	8.87%
2001	0.40%	1,654,009		11.649181		19,267,850	2.92%	7.58%
Fidelity® VIP – Equity-Income Portfolio: Service Class
2005	0.40%	722,038		13.396579		9,672,839	1.56%	5.34%
2004	0.40%	1,784,684		12.717880		22,697,397	1.39%	10.94%
2003	0.40%	2,509,045		11.463982		28,763,647	1.66%	29.70%
2002	0.40%	2,559,502		8.838834		22,623,013	1.50%	-17.33%
2001	0.40%	1,857,873		10.691577		19,863,592	1.13%	-5.47%
Fidelity® VIP – Growth Portfolio: Service Class
2005	0.40%	510,730		11.902677		6,079,054	0.41%	5.25%
2004	0.40%	1,600,358		11.308717		18,097,996	0.16%	2.85%
2003	0.40%	2,979,457		10.995198		32,759,720	0.18%	32.25%
2002	0.40%	3,005,019		8.313850		24,983,277	0.14%	-30.48%
2001	0.40%	2,428,287		11.958538		29,038,762	0.00%	-18.06%
Fidelity® VIP – High Income Portfolio: Service Class
2005	0.40%	2,824		9.525383		26,900	14.70%	2.11%
2004	0.40%	217,058		9.328110		2,024,741	8.03%	9.03%
2003	0.40%	504,057		8.555502		4,312,461	6.36%	26.46%
2002	0.40%	774,551		6.765203		5,239,995	9.18%	3.20%
2001	0.40%	638,130		6.555148		4,183,037	13.22%	-12.25%
Fidelity® VIP – Overseas Portfolio: Service Class
2005	0.40%	700,420		12.912620		9,044,257	0.56%	18.50%
2004	0.40%	912,684		10.896942		9,945,465	0.98%	13.03%
2003	0.40%	746,827		9.640353		7,199,676	0.63%	42.63%
2002	0.40%	1,627,578		6.758846		11,000,549	0.64%	-20.66%
2001	0.40%	1,216,927		8.518959		10,366,951	5.46%	-21.59%
Fidelity® VIP II – Contrafund® Portfolio: Service Class
2005	0.40%	1,090,144		17.532748		19,113,220	0.19%	16.38%
2004	0.40%	1,506,264		15.064815		22,691,589	0.24%	14.88%
2003	0.40%	1,901,875		13.113640		24,940,504	0.30%	27.84%
2002	0.40%	1,492,216		10.257824		15,306,889	0.69%	-9.79%
2001	0.40%	1,079,652		11.370566		12,276,254	0.61%	-12.71%
Fidelity® VIP II – Investment Grade Bond Portfolio: Service Class
2005	0.40%	372		10.765329		4,005	2.69%	1.67%
Fidelity® VIP III – Growth Opportunities Portfolio: Service Class
2005	0.40%	608		9.527944		5,793	0.84%	8.43%
2004	0.40%	20,800		8.787333		182,777	0.48%	6.63%
2003	0.40%	259,028		8.240791		2,134,596	0.59%	29.14%
2002	0.40%	402,649		6.381088		2,569,339	0.93%	-22.23%
2001	0.40%	504,352		8.204875		4,138,145	0.23%	-14.78%
Fidelity® VIP III – Mid Cap Portfolio: Service Class
2005	0.40%	3,976		20.553596		81,721	0.00%	17.73%
Fidelity® VIP III – Value Strategies Portfolio: Service Class
2005	0.40%	2,310		13.649958		31,531	0.00%	2.15%
2004	0.40%	64,044		13.363171		855,831	0.00%	13.53%
2003	0.40%	59,064		11.770364		695,205	0.00%	57.16%
2002	0.40%	953		7.489405		7,137	0.00%	-25.11%	05/01/02
Franklin Templeton VIP II – Franklin Small Cap Value Securities Fund – Class 2
2005	0.40%	199,332		11.340582		2,260,541	0.00%	13.41%	05/02/05
Franklin Templeton VIP II – Templeton Foreign Securities Fund – Class 2
2005	0.40%	485,970		16.161499		7,854,004	1.12%	9.73%
2004	0.40%	397,492		14.728417		5,854,428	1.11%	18.06%
2003	0.40%	300,494		12.475864		3,748,922	1.96%	31.68%
2002	0.40%	14,717		9.474024		139,429	0.00%	-5.26%	09/03/02

(Continued)

91

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Gartmore GVIT – Dreyfus Mid Cap Index Fund – Class I
2005	0.40%	746,512	$	19.427688	$	14,503,002	1.04%	11.65%
2004	0.40%	1,048,696		17.400194		18,247,514	0.56%	15.27%
2003	0.40%	1,017,996		15.095175		15,366,828	0.50%	34.11%
2002	0.40%	922,042		11.255500		10,378,044	0.45%	-15.64%
2001	0.40%	321,337		13.342471		4,287,430	0.55%	-1.70%
Gartmore GVIT – Emerging Markets Fund: Class I
2005	0.40%	150,756		18.149525		2,736,150	0.60%	32.11%
2004	0.40%	182,748		13.738334		2,510,653	1.04%	20.26%
2003	0.40%	183,203		11.423706		2,092,857	0.61%	64.60%
2002	0.40%	10,388		6.940105		72,094	0.23%	-15.57%
2001	0.40%	2,423		8.219735		19,916	0.24%	-5.56%
Gartmore GVIT – Federated High Income Bond Fund: Class I
2005	0.40%	224,370		13.713412		3,076,878	6.92%	1.97%
2004	0.40%	329,516		13.448117		4,431,370	7.58%	9.66%
2003	0.40%	767,382		12.263819		9,411,034	7.99%	21.78%
2002	0.40%	555,227		10.070195		5,591,244	10.09%	2.81%
2001	0.40%	410,468		9.794650		4,020,390	11.31%	3.80%
Gartmore GVIT – Global Financial Services Fund: Class I
2005	0.40%	3,938		16.241486		63,959	2.00%	10.71%
2004	0.40%	59,974		14.670465		879,846	1.37%	20.51%
2003	0.40%	44,687		12.173639		544,003	1.08%	40.89%
Gartmore GVIT – Global Health Sciences Fund: Class I
2005	0.40%	13,866		13.140144		182,201	0.00%	8.01%
2004	0.40%	57,244		12.165918		696,426	0.00%	7.43%
2003	0.40%	52,928		11.324625		599,390	0.00%	36.15%
2002	0.40%	292		8.317804		2,429	0.00%	-16.82%	05/01/02
Gartmore GVIT – Global Technology and Communications Fund: Class I
2005	0.40%	232,710		3.111019		723,965	0.00%	-0.91%
2004	0.40%	481,400		3.139672		1,511,438	0.00%	3.90%
2003	0.40%	573,189		3.021924		1,732,134	0.00%	54.61%
2002	0.40%	46,574		1.954523		91,030	0.67%	-43.01%
2001	0.40%	29,402		3.429593		100,837	0.00%	-42.95%
Gartmore GVIT – Global Utilities Fund: Class I
2005	0.40%	2,742		14.678049		40,247	2.09%	5.96%
2004	0.40%	15,120		13.851870		209,440	1.64%	29.45%
2003	0.40%	13,251		10.700667		141,795	1.02%	23.56%
2002	0.40%	2,326		8.660608		20,145	0.61%	-13.39%	05/01/02
Gartmore GVIT – Government Bond Fund: Class I
2005	0.40%	800,072		14.754249		11,804,462	3.71%	2.85%
2004	0.40%	2,350,974		14.345081		33,724,912	5.38%	2.85%
2003	0.40%	5,633,215		13.947593		78,569,790	3.25%	1.59%
2002	0.40%	9,515,935		13.728864		130,642,977	4.66%	10.54%
2001	0.40%	6,811,337		12.419760		84,595,171	5.61%	6.82%
Gartmore GVIT – Growth Fund – Class I
2005	0.40%	3,778		6.529541		24,669	0.08%	6.08%
2004	0.40%	16,686		6.155504		102,711	0.34%	7.72%
2003	0.40%	76,097		5.714099		434,826	0.02%	32.21%
2002	0.40%	174,753		4.322008		755,284	0.00%	-29.01%
2001	0.40%	192,191		6.087822		1,170,025	0.00%	-28.42%
Gartmore GVIT – International Growth Fund: Class I
2005	0.40%	4		9.891115		40	1.10%	29.69%
2004	0.40%	25,428		7.626680		193,931	0.85%	13.74%
2003	0.40%	52,743		6.705480		353,667	0.00%	35.08%
2002	0.40%	40,096		4.964024		199,038	0.00%	-24.41%
2001	0.40%	10,028		6.566849		65,852	0.26%	-28.94%

(Continued)

92

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Gartmore GVIT – J.P. Morgan Balanced Fund – Class I
2005	0.40%	39,454	$	10.885904	$	429,492	1.98%	2.13%
2004	0.40%	241,606		10.658428		2,575,140	1.94%	8.06%
2003	0.40%	533,567		9.863609		5,262,896	1.76%	17.94%
2002	0.40%	943,228		8.363123		7,888,332	2.28%	-12.66%
2001	0.40%	351,646		9.575644		3,367,237	2.54%	-4.06%
Gartmore GVIT – Mid Cap Growth Fund: Class I
2005	0.40%	468		12.454266		5,829	0.00%	9.30%
2004	0.40%	114,718		11.394076		1,307,106	0.00%	14.88%
2003	0.40%	335,334		9.918443		3,325,991	0.00%	39.58%
2002	0.40%	1,062,592		7.106122		7,550,908	0.00%	-37.27%
2001	0.40%	916,433		11.327538		10,380,930	0.00%	-30.59%
Gartmore GVIT – Money Market Fund – Class I
2005	0.40%	1,872		12.182168		22,805	2.61%	2.26%
2004	0.40%	165,086		11.913109		1,966,688	0.80%	0.41%
2003	0.40%	541,898		11.864684		6,429,449	0.63%	0.22%
2002	0.40%	4,829,326		11.838269		57,170,860	1.51%	0.81%
2001	0.40%	16,843,508		11.743544		197,802,477	3.18%	3.19%
Gartmore GVIT – Nationwide® Fund: Class I
2005	0.40%	28,310		11.314587		320,316	1.00%	7.01%
2004	0.40%	119,314		10.573030		1,261,511	1.30%	9.31%
2003	0.40%	331,958		9.672247		3,210,780	0.59%	27.00%
2002	0.40%	368,763		7.615719		2,808,395	0.95%	-17.68%
2001	0.40%	358,546		9.251754		3,317,179	0.88%	-12.17%
Gartmore GVIT – Nationwide® Leaders Fund: Class I
2005	0.40%	212		13.685866		2,901	1.29%	9.87%
2004	0.40%	996		12.456136		12,406	0.48%	18.32%
2003	0.40%	2,091		10.527571		22,013	0.15%	24.88%
Gartmore GVIT – Nationwide® Strategic Value Fund – Class I
2003	0.40%	19,292		9.311693		179,641	0.04%	38.25%
2002	0.40%	30,787		6.735208		207,357	0.03%	-25.66%
2001	0.40%	37,680		9.059635		341,367	0.53%	-3.64%
Gartmore GVIT – Small Cap Growth Fund: Class I
2005	0.40%	123,110		16.384018		2,017,036	0.00%	7.66%
2004	0.40%	302,750		15.218321		4,607,347	0.00%	12.96%
2003	0.40%	315,046		13.471955		4,244,286	0.00%	33.73%
2002	0.40%	312,346		10.074004		3,146,575	0.00%	-33.55%
2001	0.40%	162,269		15.161271		2,460,204	0.00%	-11.20%
Gartmore GVIT – Small Cap Value Fund: Class I
2005	0.40%	395,632		21.016857		8,314,941	0.07%	2.66%
2004	0.40%	1,039,852		20.471824		21,287,667	0.00%	16.83%
2003	0.40%	1,315,269		17.522719		23,047,089	0.00%	56.23%
2002	0.40%	1,401,972		11.216089		15,724,643	0.01%	-27.45%
2001	0.40%	594,303		15.460620		9,188,293	0.04%	27.76%
Gartmore GVIT – Small Company Fund: Class I
2005	0.40%	832,540		20.082219		16,719,251	0.00%	11.87%
2004	0.40%	1,815,822		17.951460		32,596,656	0.00%	18.55%
2003	0.40%	2,515,752		15.142892		38,095,761	0.00%	40.45%
2002	0.40%	2,331,936		10.781666		25,142,155	0.00%	-17.66%
2001	0.40%	1,522,194		13.093906		19,931,465	0.13%	-7.08%
Gartmore GVIT – Turner Growth Focus Fund – Class I
2003	0.40%	48,390		3.293722		159,383	0.00%	50.36%
2002	0.40%	6,098		2.190553		13,358	0.00%	-43.09%
2001	0.40%	2,944		3.848878		11,331	0.00%	-39.27%
Gartmore GVIT – U.S. Growth Leaders Fund: Class I
2005	0.40%	816		15.521877		12,666	0.00%	11.52%
2004	0.40%	3,866		13.918876		53,810	0.00%	11.96%
2003	0.40%	28,684		12.431976		356,599	0.00%	51.53%

(Continued)

93

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Gartmore GVIT – Van Kampen Multi Sector Bond Fund – Class I
2005	0.40%	89,110	$	14.210938	$	1,266,337	3.99%	1.77%
2004	0.40%	307,698		13.963330		4,296,489	4.55%	6.11%
2003	0.40%	469,752		13.159481		6,181,693	5.42%	11.67%
2002	0.40%	775,887		11.784392		9,143,357	4.49%	6.78%
2001	0.40%	1,739,536		11.036224		19,197,909	6.01%	3.77%
Gartmore GVIT – Van Kampen Value Fund – Class I
2005	0.40%	262		11.536276		3,023	1.61%	3.83%
2004	0.40%	28,772		11.110531		319,672	1.39%	17.03%
2003	0.40%	50,453		9.493770		478,989	1.34%	30.91%
2002	0.40%	254,670		7.252185		1,846,914	1.34%	-25.44%
2001	0.40%	115,152		9.726929		1,120,075	1.63%	-12.51%
Gartmore GVIT – Worldwide Leaders Fund: Class I
2005	0.40%	78		12.370181		965	1.11%	18.86%
2004	0.40%	1,704		10.407118		17,734	0.00%	15.20%
2003	0.40%	30,673		9.033664		277,090	0.00%	35.52%
2002	0.40%	82,915		6.666122		552,722	2.00%	-25.69%
2001	0.40%	1,549,764		8.970354		13,901,932	1.84%	-19.14%
Gartmore GVIT V – Money Market Fund: Class V
2005	0.40%	5,136,552		10.330316		53,062,205	2.74%	2.34%
2004	0.40%	7,815,054		10.093995		78,885,116	0.91%	0.49%
2003	0.40%	11,999,723		10.045042		120,537,722	0.70%	0.30%
2002	0.40%	15,116,078		10.014669		151,382,518	0.28%	0.15%	10/21/02
Gartmore GVIT ID II – Aggressive Fund – Class II
2005	0.40%	104,554		13.310555		1,391,672	2.02%	7.50%
2004	0.40%	63,674		12.381734		788,395	1.85%	13.57%
2003	0.40%	19,629		10.902206		213,999	1.57%	31.34%
2002	0.40%	4,346		8.300685		36,075	0.86%	-16.99%	01/25/02
Gartmore GVIT ID II – Conservative Fund – Class II
2005	0.40%	49,050		11.542054		566,138	2.49%	2.90%
2004	0.40%	95,536		11.217265		1,071,653	2.49%	4.23%
2003	0.40%	12,703		10.761565		136,704	2.59%	7.48%
2002	0.40%	6,694		10.013037		67,027	2.18%	0.13%	01/25/02
Gartmore GVIT ID II – Moderate Fund – Class II
2005	0.40%	390,100		12.464210		4,862,288	2.39%	4.92%
2004	0.40%	264,480		11.879208		3,141,813	2.21%	9.10%
2003	0.40%	37,624		10.888513		409,669	2.05%	19.57%
2002	0.40%	9,222		9.106228		83,978	1.66%	-8.94%	01/25/02
Gartmore GVIT ID II – Moderately Aggressive Fund – Class II
2005	0.40%	181,156		12.999118		2,354,868	2.19%	6.65%
2004	0.40%	142,944		12.189084		1,742,356	2.01%	11.65%
2003	0.40%	56,878		10.917690		620,976	1.61%	26.14%
2002	0.40%	14,555		8.655338		125,978	1.05%	-13.45%	01/25/02
Gartmore GVIT ID II – Moderately Conservative Fund – Class II
2005	0.40%	521,412		12.083751		6,300,613	2.78%	4.07%
2004	0.40%	210,474		11.611205		2,443,857	2.38%	6.73%
2003	0.40%	13,568		10.878938		147,605	2.33%	13.24%
2002	0.40%	4,849		9.606563		46,582	1.99%	-3.93%	01/25/02
Goldman Sachs VIT – Mid Cap Value Fund
2005	0.40%	1,114,814		17.796530		19,839,821	0.60%	12.38%
2004	0.40%	1,046,542		15.836525		16,573,589	0.74%	25.38%
2003	0.40%	599,528		12.630569		7,572,380	1.72%	27.88%
2002	0.40%	7,368		9.877029		72,774	0.27%	-1.23%	09/03/02
Janus AS – Balanced Portfolio – Service Shares
2005	0.40%	208,740		13.145265		2,743,943	2.04%	7.23%
2004	0.40%	285,628		12.258707		3,501,430	2.45%	7.86%
2003	0.40%	360,530		11.365300		4,097,532	2.34%	13.27%
2002	0.40%	977		10.033996		9,803	2.14%	0.34%	09/03/02

(Continued)

94

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Janus AS – Forty Portfolio – Service Shares
2005	0.40%	217,772	$	8.438947	$	1,837,766	0.01%	12.11%
2004	0.40%	878,196		7.527514		6,610,633	0.02%	17.50%
2003	0.40%	1,755,706		6.406568		11,248,050	0.25%	19.75%
2002	0.40%	1,902,427		5.349794		10,177,593	0.32%	-16.26%
2001	0.40%	1,517,392		6.388873		9,694,425	1.01%	-22.14%
Janus AS – Global Technology Portfolio – Service Shares
2005	0.40%	8,530		3.910937		33,360	0.00%	11.11%
2004	0.40%	183,526		3.520024		646,016	0.00%	0.16%
2003	0.40%	524,317		3.514240		1,842,576	0.00%	45.89%
2002	0.40%	783,206		2.408830		1,886,610	0.00%	-41.17%
2001	0.40%	677,164		4.094407		2,772,585	0.63%	-37.57%
Janus AS – International Growth Portfolio – Service Shares
2005	0.40%	156,464		9.676381		1,514,005	1.05%	31.41%
2004	0.40%	1,087,636		7.363272		8,008,560	0.85%	18.21%
2003	0.40%	2,277,464		6.228826		14,185,927	1.02%	34.00%
2002	0.40%	3,375,569		4.648509		15,691,363	0.70%	-26.05%
2001	0.40%	2,212,967		6.286392		13,911,578	0.81%	-23.74%
JPMorgan IT – Mid Cap Growth Portfolio
2005	0.40%	90,134		15.828526		1,426,688	0.00%	10.65%
2004	0.40%	99,214		14.304998		1,419,256	0.00%	12.17%
2003	0.40%	208,667		12.752960		2,661,122	0.00%	26.64%
2002	0.40%	19,940		10.070202		200,800	0.00%	0.70%	09/18/02
JPMorgan IT – Mid Cap Value Portfolio
2005	0.40%	14,156		16.484146		233,350	0.60%	9.32%
2004	0.40%	35,252		15.079159		531,571	0.58%	14.94%
2003	0.40%	30,988		13.119525		406,548	0.57%	32.22%
2002	0.40%	39,000		9.922131		386,963	0.00%	-0.78%	09/18/02
Lord Abbett Series Mid Cap Value Fund – VC
2005	0.40%	1,690		11.259238		19,028	0.52%	12.59%	05/02/05
Merrill Lynch – FAM VSF II – Mercury International Index Portfolio – Class II
2005	0.40%	220		11.621096		2,557	1.76%	16.21%	05/02/05
Mercury II – Large Cap Core VIF – Class II
2005	0.40%	73,626		11.566434		851,590	0.74%	15.66%	05/02/05
Neuberger Berman AMT – Guardian Portfolio – I Class Shares
2005	0.40%	80,808		12.647762		1,022,040	0.15%	7.96%
2004	0.40%	290,396		11.715274		3,402,069	0.12%	15.35%
2003	0.40%	406,038		10.156098		4,123,762	0.89%	31.24%
2002	0.40%	1,042,854		7.738827		8,070,467	0.75%	-26.74%
2001	0.40%	270,845		10.563782		2,861,148	0.29%	-1.90%
Neuberger Berman AMT – Mid Cap Growth Portfolio – I Class Shares
2005	0.40%	127,004		14.112212		1,792,307	0.00%	13.29%
2004	0.40%	322,438		12.456893		4,016,576	0.00%	15.84%
2003	0.40%	895,379		10.753194		9,628,184	0.00%	27.56%
2002	0.40%	1,801,971		8.429938		15,190,504	0.00%	-29.62%
2001	0.40%	1,272,440		11.978031		15,241,326	0.00%	-24.95%
Neuberger Berman AMT – Partners Portfolio® – I Class Shares
2005	0.40%	211,116		13.728969		2,898,405	0.98%	17.58%
2004	0.40%	244,546		11.676716		2,855,494	0.01%	18.50%
2003	0.40%	271,980		9.853739		2,680,020	0.00%	34.55%
2002	0.40%	341,601		7.323519		2,501,721	0.54%	-24.45%
2001	0.40%	322,706		9.693032		3,128,000	0.33%	-3.22%
Neuberger Berman AMT – Fasciano Portfolio – S Class Shares
2005	0.40%	20,788		14.307871		297,432	0.00%	2.49%
2004	0.40%	44,406		13.960609		619,935	0.00%	11.43%
2003	0.40%	35,320		12.528578		442,509	0.00%	24.56%
2002	0.40%	3,552		10.057930		35,726	0.00%	0.58%	09/03/02

(Continued)

95

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Oppenheimer Funds – Aggressive Growth Fund/VA – Initial Class
2005	0.40%	5,300	$	12.872483	$	68,224	0.00%	11.88%
2004	0.40%	916,804		11.505640		10,548,417	0.00%	19.30%
2003	0.40%	1,747,033		9.644393		16,849,073	0.00%	25.09%
2002	0.40%	2,442,509		7.709999		18,831,742	0.63%	-28.08%
2001	0.40%	2,155,828		10.720152		23,110,804	0.86%	-31.54%
Oppenheimer Funds – Capital Appreciation Fund/VA – Initial Class
2005	0.40%	1,425,776		13.784845		19,654,101	0.91%	4.68%
2004	0.40%	4,419,620		13.168552		58,199,996	0.31%	6.51%
2003	0.40%	4,490,131		12.363752		55,514,866	0.38%	30.42%
2002	0.40%	3,582,220		9.479881		33,959,019	0.57%	-27.15%
2001	0.40%	2,694,063		13.013036		35,057,939	0.59%	-12.93%
Oppenheimer Funds – Global Securities Fund/VA – Initial Class
2005	0.40%	810,028		12.520042		10,141,585	1.00%	13.85%
2004	0.40%	1,770,284		10.996730		19,467,335	1.15%	18.69%
2003	0.40%	1,588,406		9.265284		14,717,033	0.73%	42.45%
2002	0.40%	1,442,545		6.504237		9,382,655	0.55%	-22.45%
2001	0.40%	813,325		8.386697		6,821,110	0.39%	-12.39%
Oppenheimer Funds – Main Street Fund®/VA – Initial Class
2005	0.40%	5,684		10.349023		58,824	1.37%	5.55%
2004	0.40%	606,518		9.804476		5,946,591	0.83%	9.02%
2003	0.40%	805,623		8.993106		7,245,053	0.90%	26.21%
2002	0.40%	704,851		7.125335		5,022,300	0.75%	-19.12%
2001	0.40%	544,668		8.809927		4,798,485	0.50%	-10.52%
PIMCO VIT – All Asset Portfolio – Administrative Shares
2005	0.40%	58,972		11.847635		698,679	4.94%	5.81%
2004	0.40%	13,676		11.197507		153,137	6.86%	11.98%	05/03/04
PIMCO VIT – Low Duration Portfolio – Administrative Shares
2005	0.40%	1,106,776		10.591594		11,722,522	2.71%	0.60%
2004	0.40%	1,548,394		10.528355		16,302,042	1.29%	1.43%
2003	0.40%	427,929		10.379703		4,441,776	1.22%	1.94%
2002	0.40%	45,027		10.182621		458,493	0.26%	1.83%	09/03/02
PIMCO VIT – Real Return Portfolio – Administrative Shares
2005	0.40%	640,224		12.383232		7,928,042	2.85%	1.67%
2004	0.40%	907,634		12.180321		11,055,273	1.03%	8.45%
2003	0.40%	604,652		11.230805		6,790,729	2.35%	8.42%
2002	0.40%	48,671		10.358691		504,168	0.39%	3.59%	08/30/02
PIMCO VIT – Total Return Portfolio – Administrative Shares
2005	0.40%	2,531,932		11.513866		29,152,326	3.47%	2.02%
2004	0.40%	3,142,992		11.286156		35,472,298	1.92%	4.46%
2003	0.40%	2,117,582		10.804064		22,878,491	2.71%	4.62%
2002	0.40%	185,190		10.326715		1,912,404	0.98%	3.27%	08/30/02
Pioneer VCT – Pioneer High Yield VCT Portfolio – Class I Shares
2005	0.40%	252,932		14.969736		3,786,325	5.49%	1.54%
2004	0.40%	473,190		14.742883		6,976,185	5.59%	7.63%
2003	0.40%	105,483		13.697677		1,444,872	5.84%	32.26%
2002	0.40%	211		10.356990		2,185	1.76%	3.57%	09/03/02
Royce Capital Fund – Royce Micro-Cap Portfolio
2005	0.40%	830,676		18.923254		15,719,093	0.60%	11.17%
2004	0.40%	1,033,530		17.022607		17,593,375	0.00%	13.39%
2003	0.40%	548,859		15.012271		8,239,620	0.00%	48.57%
2002	0.40%	43,606		10.104573		440,620	0.00%	1.05%	09/03/02
T. Rowe Price – New America Growth Portfolio
2005	0.40%	584,706		11.232593		6,567,765	0.00%	4.06%
2004	0.40%	19,964		10.794628		215,504	0.00%	7.95%	05/03/04
T. Rowe Price II – Equity Income Portfolio – II
2005	0.40%	1,649,340		14.871262		24,527,767	1.39%	3.28%
2004	0.40%	1,661,986		14.398668		23,930,385	1.46%	14.16%
2003	0.40%	1,166,336		12.612824		14,710,791	1.80%	24.67%
2002	0.40%	16,487		10.116880		166,797	0.77%	1.17%	09/03/02

(Continued)

96

NATIONWIDE VLI SEPARATE ACCOUNT– 4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
T. Rowe Price II – Mid Cap Growth Fund – II
2005	0.40%	453,782	$	18.882872	$	8,568,707	0.00%	13.98%
2004	0.40%	754,450		16.566668		12,498,723	0.00%	17.58%
2003	0.40%	513,748		14.089414		7,238,408	0.00%	37.54%
2002	0.40%	11,398		10.243767		116,758	0.00%	2.44%	09/03/02
Van Eck WIT – Worldwide Emerging Markets Fund – Initial Class
2005	0.40%	596		17.488050		10,423	0.71%	31.47%
2004	0.40%	53,740		13.301843		714,841	0.53%	25.39%
2003	0.40%	69,877		10.608507		741,291	0.11%	53.57%
2002	0.40%	170,526		6.907806		1,177,961	0.21%	-3.29%
2001	0.40%	93,450		7.142729		667,488	0.00%	-2.20%
Van Eck WIT – Worldwide Hard Assets Fund – Initial Class
2005	0.40%	52		21.290146		1,107	0.31%	51.07%
2004	0.40%	153,946		14.093195		2,169,591	0.31%	23.73%
2003	0.40%	111,979		11.413041		1,278,021	0.41%	44.50%
2002	0.40%	38,434		7.898317		303,564	0.75%	-3.22%
2001	0.40%	13,391		8.161281		109,288	1.04%	-10.80%
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I
2005	0.40%	83,166		18.008789		1,497,719	7.14%	11.80%
2004	0.40%	122,976		16.107486		1,980,834	7.52%	9.62%
2003	0.40%	200,179		14.693571		2,941,344	0.00%	27.35%
2002	0.40%	159,659		11.537562		1,842,076	8.74%	8.79%
2001	0.40%	80,313		10.605749		851,780	10.76%	9.66%
Van Kampen UIF – Mid Cap Growth Portfolio – Class I
2005	0.40%	49,068		8.377513		411,068	0.00%	17.10%
2004	0.40%	30,098		7.154160		215,326	0.00%	21.11%
2003	0.40%	142,586		5.907110		842,271	0.00%	41.20%
2002	0.40%	265,456		4.183540		1,110,546	0.00%	-31.43%
2001	0.40%	127,633		6.101338		778,732	0.00%	-29.60%
Van Kampen UIF – U.S. Real Estate Portfolio – Class I
2005	0.40%	377,610		25.703042		9,705,726	1.19%	16.59%
2004	0.40%	716,826		22.046498		15,803,503	1.61%	35.85%
2003	0.40%	698,195		16.228488		11,330,649	0.00%	36.96%
2002	0.40%	636,267		11.848822		7,539,014	4.01%	-1.18%
2001	0.40%	318,295		11.990690		3,816,577	5.40%	9.40%
Wells Fargo VTFSM – Wells Fargo Advantage Opportunity Fund VT
2005	0.40%	110,270		11.889981		1,311,108	0.00%	7.45%
2004	0.40%	898,190		11.065086		9,938,550	0.00%	17.75%
2003	0.40%	1,423,338		9.397220		13,375,420	0.08%	36.46%
2002	0.40%	1,740,569		6.886442		11,986,327	0.50%	-27.11%
2001	0.40%	1,042,724		9.447854		9,851,504	0.65%	-4.09%
Contract Owners’ Equity Total By Year
2005					$	3,947,899,004
2004					$	3,677,896,359
2003					$	3,032,894,218
2002					$	2,276,440,710
2001					$	2,087,035,414

(Continued)

97

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

*	This represents the annual contract expense rate of the variable account for the period indicated and includes only those expenses that are charged through a reduction in the unit values. Excluded are expenses of the underlying mutual funds and charges made directly to contract owner accounts through the redemption of units.
**	This represents the dividends for the period indicated, excluding distributions of capital gains, received by the subaccount from the underlying mutual fund, net of management fees assessed by the fund manager, divided by average net assets. The ratios exclude those expenses, such as mortality and expense charges, that result in direct reductions to the contractholder accounts either through reductions in unit values or redemption of units. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the underlying fund in which the subaccounts invest.
***	This represents the total return for the period indicated, including changes in the value of the underlying mutual fund, which reflects the reduction of unit value for expenses assessed. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Investment options with a date notation indicate the effective date of that investment option in the Account. The total return is calculated for the period indicated or from the effective date through the end of the period.

98

Report of Independent Registered Public Accounting Firm

The Board of Directors of Nationwide Life Insurance Company and

    Contract Owners of Nationwide VLI Separate Account-4:

We have audited the accompanying statement of assets, liabilities and contract owners’ equity of Nationwide VLI Separate Account-4 (comprised of the sub-accounts listed in note 1(b)) (collectively, “the Account”) as of December 31, 2005, and the related statements of operations and changes in contract owners’ equity, and the financial highlights for each of the periods indicated herein. These financial statements and financial highlights are the responsibility of the Account’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2005, by correspondence with the transfer agents of the underlying mutual funds. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Account as of December 31, 2005, and the results of its operations, changes in contract owners’ equity, and financial highlights for each of the periods indicated herein, in conformity with U.S. generally accepted accounting principles.

KPMG LLP

Columbus, Ohio

March 8, 2006

99

NATIONWIDE LIFE INSURANCE COMPANY	PRSRT STD
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