Nationwide^® VLI

Separate Account-4

December 31, 2006

2006    

Annual Report    

Nationwide Life Insurance Company

Home Office: Columbus, Ohio

VLOB – 0161–12/06

NATIONWIDE VLI SEPARATE ACCOUNT–4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2006

Assets:
Investments at fair value:
AIM Variable Insurance Funds – AIM V.I. Basic Value Fund – Series I (AIMBValue) 641,761 shares (cost $7,746,543)	$	8,573,932
AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund – Series I (AIMCapAp) 59,531 shares (cost $1,365,024)		1,560,911
AIM Variable Insurance Funds – AIM V.I. Capital Development Fund – Series I Shares (AIMCapDev) 685,921 shares (cost $11,216,226)		12,641,516
AIM Variable Insurance Funds – AIM V.I. International Growth Fund – Series I (AIMIntGr) 668,117 shares (cost $16,204,413)		19,662,694
AllianceBernstein Variable Products Series Fund, Inc. – Growth and Income Portfolio – Class A (AlVPGrIncA) 734,058 shares (cost $17,570,653)		19,959,024
AllianceBernstein Variable Products Series Fund, Inc. – International Value Portfolio – Class A (AlVPIntlValA) 492,079 shares (cost $10,827,944)		12,282,295
AllianceBernstein Variable Products Series Fund, Inc. – Small-Mid Cap Value Portfolio – Class A (AlVPSmMdCpA) 187,235 shares (cost $3,072,162)		3,385,214
American Century Variable Portfolios, Inc. – Income & Growth Fund – Class I (ACVPIncGr) 3,403,175 shares (cost $21,788,199)		29,369,401
American Century Variable Portfolios, Inc. – Inflation Protection Fund – Class II (ACVPInfPro2) 620,755 shares (cost $6,397,394)		6,257,213
American Century Variable Portfolios, Inc. – International Fund – Class I (ACVPInt) 4,871,695 shares (cost $33,082,381)		49,301,553
American Century Variable Portfolios, Inc. – International Fund – Class III (ACVPInt3) 791,444 shares (cost $6,337,268)		8,009,412
American Century Variable Portfolios, Inc. – Mid Cap Value Fund – Class I (ACVPMdCpV) 89,844 shares (cost $1,150,515)		1,211,993
American Century Variable Portfolios, Inc. – Ultra® Fund – Class I (ACVPUltra) 400,702 shares (cost $4,017,182)		4,023,048
American Century Variable Portfolios, Inc. – Value Fund – Class I (ACVPVal) 8,613,430 shares (cost $66,622,286)		75,281,381
American Century Variable Portfolios, Inc. – VistaSM Fund – Class I (ACVPVista) 22,131 shares (cost $348,342)		348,349
Baron Capital Funds Trust – Baron Capital Asset Fund – Insurance Shares (BCFTCpAsset) 400,378 shares (cost $11,463,419)		12,932,203
BlackRock International Index Portfolio – Class II (BRIntIndex) 139,917 shares (cost $1,644,964)		1,464,934
BlackRock Large Cap Core V.I. Fund – Class II (BRLrgCp) 61,284 shares (cost $1,979,482)		1,972,125
Calvert Variable Series, Inc. – Social Equity Portfolio (CalVSSoEq) 6,726 shares (cost $118,588)		131,020
Credit Suisse Trust – Global Small Cap Portfolio (CSTGlSmCp) 55,300 shares (cost $608,828)		810,701
Credit Suisse Trust – International Focus Portfolio (CSTIntFoc) 147,699 shares (cost $1,237,053)		2,029,384

(Continued)

2

NATIONWIDE VLI SEPARATE ACCOUNT– 4

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

Credit Suisse Trust – Large Cap Value Portfolio (CSTLCapV) 107,862 shares (cost $1,397,319)	$	1,833,659
Dreyfus Investment Portfolios – Mid Cap Stock Index Portfolio – Initial Shares (DryIPMidCap) 63,167 shares (cost $1,116,854)		1,098,481
Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio – Service Shares (DryIPSmCap) 1,314,107 shares (cost $21,495,262)		24,429,251
Dreyfus Socially Responsible Growth Fund, Inc. – Initial Shares, The (DrySRGro) 542,239 shares (cost $12,804,628)		15,426,696
Dreyfus Stock Index Fund, Inc. – Initial Shares (DryStkIx) 10,679,822 shares (cost $295,158,994)		386,075,551
Dreyfus Variable Investment Fund – Appreciation Portfolio – Initial Shares (DryVIApp) 819,171 shares (cost $27,813,949)		34,855,721
Dreyfus Variable Investment Fund – Developing Leaders Portfolio – Initial Shares (DryVIDevLd) 19,757 shares (cost $807,824)		830,384
Dreyfus Variable Investment Fund – International Value Portfolio – Initial Shares (DryVIIntVal) 2,085,158 shares (cost $35,066,552)		40,660,588
DWS Variable Series II – DWS Dreman High Return Equity VIP – Class B (DWSVHghRtrn) 11,376 shares (cost $167,847)		170,863
Federated Insurance Series – Federated American Leaders Fund II – Primary Shares (FedAmLead) 16,810 shares (cost $329,299)		362,257
Federated Insurance Series – Federated Capital Appreciation Fund II – Primary Shares (FedCapAp) 63,070 shares (cost $362,551)		427,618
Federated Insurance Series – Federated Market Opportunity Fund II – Service Shares (FedMrkOp) 3,915 shares (cost $40,089)		41,185
Federated Insurance Series – Federated Quality Bond Fund II – Primary Shares (FedQualBd) 4,532,541 shares (cost $51,303,856)		51,172,391
Fidelity® Variable Insurance Products Fund – Equity-Income Portfolio – Service Class (FidVIPEIS) 4,394,193 shares (cost $99,138,348)		114,732,373
Fidelity® Variable Insurance Products Fund – Growth Portfolio – Service Class (FidVIPGrS) 2,825,006 shares (cost $82,313,010)		100,909,227
Fidelity® Variable Insurance Products Fund – High Income Portfolio – Service Class (FidVIPHIS) 3,797,291 shares (cost $24,979,415)		23,998,878
Fidelity® Variable Insurance Products Fund – Overseas Portfolio – Service Class (FidVIPOvS) 1,983,800 shares (cost $34,191,454)		47,333,468
Fidelity® Variable Insurance Products Fund – Overseas Portfolio – Service Class R (FidVIPOvSR) 610,029 shares (cost $12,114,735)		14,536,987
Fidelity® Variable Insurance Products Fund II – Contrafund® Portfolio – Service Class (FidVIPConS) 6,267,438 shares (cost $160,780,598)		196,672,210
Fidelity® Variable Insurance Products Fund II – Investment Grade Bond Portfolio – Service Class (FidVIPIGBdS) 867,477 shares (cost $10,942,088)		10,999,603
Fidelity® Variable Insurance Products Fund III – Growth Opportunities Portfolio – Service Class (FidVIPGrOpS) 722,147 shares (cost $10,169,915)		13,099,743
Fidelity® Variable Insurance Products Fund III – Mid Cap Portfolio – Service Class (FidVIPMCapS) 843,942 shares (cost $27,026,227)		29,191,938
Fidelity® Variable Insurance Products Fund III – Value Strategies Portfolio – Service Class (FidVIPVaIS) 600,775 shares (cost $7,806,058)		8,062,398
Fidelity® Variable Insurance Products Fund IV – Energy Portfolio – Service Class 2 (FidVIPEnergyS2) 405,978 shares (cost $8,448,366)		7,705,457

(Continued)

3

NATIONWIDE VLI SEPARATE ACCOUNT– 4

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

Fidelity® Variable Insurance Products Fund IV – Freedom Fund 2010 Portfolio – Service Class (FidVIPFree10S) 58,190 shares (cost $649,448)	$	673,841
Fidelity® Variable Insurance Products Fund IV – Freedom Fund 2020 Portfolio – Service Class (FidVIPFree20S) 112,088 shares (cost $1,265,128)		1,355,144
Fidelity® Variable Insurance Products Fund IV – Freedom Fund 2030 Portfolio – Service Class (FidVIPFree30S) 56,400 shares (cost $661,146)		701,611
Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Fund – Class 2 (FrVIPIncSec2) 75,971 shares (cost $1,274,033)		1,318,850
Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund – Class 1 (FrVIPRisDiv) 753,083 shares (cost $13,368,144)		15,724,376
Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund – Class 1 (FrVIPSmCapV1) 537,877 shares (cost $9,018,262)		10,257,309
Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund – Class 2 (FrVIPSmCapV2) 190,767 shares (cost $3,354,636)		3,584,521
Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund – Class 3(FrVIPDevMrk3) 369,433 shares (cost $4,256,333)		5,090,790
Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund – Class 1 (FrVIPForSec) 194,917 shares (cost $2,729,853)		3,701,478
Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund – Class 2 (FrVIPForSec2) 1,018,673 shares (cost $16,315,933)		19,069,549
Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund – Class 3 (FrVIPForSec3) 311,683 shares (cost $4,989,179)		5,822,234
Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund – Class 3 (FrVIPGlInc3) 99,793 shares (cost $1,468,512)		1,545,790
Gartmore GVIT – American Funds GVIT Asset Allocation Fund – Class II (GVITAstAll2) 94,329 shares (cost $1,701,829)		1,752,640
Gartmore GVIT – American Funds GVIT Bond Fund – Class II (GVITBnd2) 63,492 shares (cost $735,161)		744,129
Gartmore GVIT – American Funds GVIT Global Growth Fund – Class II (GVITGlobGr2) 70,030 shares (cost $1,534,922)		1,635,198
Gartmore GVIT – American Funds GVIT Growth Fund – Class II (GVITGrowth2) 26,945 shares (cost $1,676,683)		1,746,604
Gartmore GVIT – Dreyfus GGVIT International Value Fund – Class I (GVITIntValI) 167,400 shares (cost $2,596,126)		3,110,287
Gartmore GVIT – Dreyfus GGVIT International Value Fund – Class III (GVITIntVal3) 436,930 shares (cost $7,270,397)		8,096,321
Gartmore GVIT – Emerging Markets Fund – Class I (GVITEmMrkts) 1,705,805 shares (cost $22,349,758)		29,885,712

(Continued)

4

NATIONWIDE VLI SEPARATE ACCOUNT– 4

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

Gartmore GVIT – Emerging Markets Fund – Class III (GVITEmMrkts3) 743,222 shares (cost $10,439,607)	$	13,013,811
Gartmore GVIT – Federated GGVIT High Income Bond Fund – Class I (GVITFHiInc) 3,172,543 shares (cost $25,502,785)		25,316,897
Gartmore GVIT – Federated GGVIT High Income Bond Fund – Class III (GVITFHiInc3) 1,026,381 shares (cost $8,105,617)		8,180,255
Gartmore GVIT – Global Financial Services Fund – Class I (GVITGlFin) 368,859 shares (cost $4,829,535)		4,887,382
Gartmore GVIT – Global Health Sciences Fund – Class I (GVITGlHlth) 332,459 shares (cost $3,551,558)		3,530,719
Gartmore GVIT – Global Health Sciences Fund – Class III (GVITGlHlth3) 220,491 shares (cost $2,337,156)		2,346,019
Gartmore GVIT – Global Technology and Communications Fund – Class I (GVITGlTech) 1,317,579 shares (cost $4,838,072)		5,639,238
Gartmore GVIT – Global Technology and Communications Fund – Class III (GVITGlTech3) 431,760 shares (cost $1,728,502)		1,860,887
Gartmore GVIT – Global Utilities Fund – Class I (GVITGlUtl) 339,355 shares (cost $3,928,329)		4,353,923
Gartmore GVIT – Government Bond Fund – Class I (GVITGvtBd) 8,664,406 shares (cost $101,938,328)		98,341,002
Gartmore GVIT – Growth Fund: Class I (GVITGrowth) 1,380,194 shares (cost $12,737,491)		16,769,352
Gartmore GVIT – International Growth Fund – Class I (GVITIntGro) 800,207 shares (cost $7,530,865)		9,658,502
Gartmore GVIT – International Index Fund – Class VI (GVITIntIdx6) 20,638 shares (cost $206,790)		223,099
Gartmore GVIT – Investor Destinations Aggressive Fund – Class II (GVITIDAgg2) 1,851,870 shares (cost $21,541,580)		25,018,761
Gartmore GVIT – Investor Destinations Conservative Fund – Class II (GVITIDCon2) 1,250,759 shares (cost $12,986,761)		13,095,442
Gartmore GVIT – Investor Destinations Moderate Fund – Class II (GVITIDMod2) 5,052,656 shares (cost $55,769,695)		62,046,616
Gartmore GVIT – Investor Destinations Moderately Aggressive Fund – Class II (GVITIDModAg2) 5,165,455 shares (cost $58,984,026)		67,667,455
Gartmore GVIT – Investor Destinations Moderately Conservative Fund – Class II (GVITIDModCon2) 2,297,679 shares (cost $25,001,270)		26,078,662
Gartmore GVIT – J.P. Morgan GVIT Balanced Fund: Class I (GVITJPBal) 1,582,261 shares (cost $14,812,430)		17,404,872
Gartmore GVIT – Mid Cap Growth Fund – Class I (GVITMdCpGr) 583,834 shares (cost $14,497,239)		17,421,611
Gartmore GVIT – Mid Cap Index Fund – Class I (GVITMdCpIdx) 4,369,987 shares (cost $70,866,815)		81,238,063
Gartmore GVIT – Money Market Fund – Class I (GVITMyMkt) 115,461,952 shares (cost $115,461,952)		115,461,952
Gartmore GVIT – Money Market Fund – Class V (GVITMyMkt5) 331,551,882 shares (cost $331,551,882)		331,551,882
Gartmore GVIT – Nationwide® Fund – Class I (GVITNWFund) 39,694,136 shares (cost $407,064,317)		528,725,885
Gartmore GVIT – Nationwide® Leaders Fund – Class I (GVITNWLead) 112,479 shares (cost $1,516,696)		1,545,460

(Continued)

5

NATIONWIDE VLI SEPARATE ACCOUNT– 4

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

Gartmore GVIT – Small Cap Growth Fund – Class I (GVITSmCapGr) 1,397,403 shares (cost $20,776,850)	$	22,931,384
Gartmore GVIT – Small Cap Value Fund – Class I (GVITSmCapVal) 6,450,836 shares (cost $75,850,088)		80,312,903
Gartmore GVIT – Small Company Fund – Class I (GVITSmComp) 4,055,439 shares (cost $93,935,239)		101,345,430
Gartmore GVIT – U.S. Growth Leaders Fund – Class I (GVITUSGro) 620,618 shares (cost $6,916,554)		6,541,317
Gartmore GVIT – Van Kampen GGVIT Comstock Value Fund: Class I (GVITVKVal) 1,086,122 shares (cost $12,107,828)		13,619,970
Gartmore GVIT – Van Kampen GVIT Multi-Sector Bond Fund – Class I (GVITMltSec) 1,889,444 shares (cost $18,700,219)		18,535,448
Gartmore GVIT – Worldwide Leaders Fund – Class I (GVITWLead) 361,149 shares (cost $4,169,092)		5,742,265
Goldman Sachs Variable Insurance Trust – Goldman Sachs VIT Mid Cap Value Fund (GSVMdCpV) 4,334,754 shares (cost $68,919,597)		69,746,193
Janus Aspen Series – Balanced Portfolio – Service Shares (JanBal) 220,678 shares (cost $5,973,951)		6,362,145
Janus Aspen Series – Forty Portfolio – Service Shares (JanForty) 1,498,305 shares (cost $34,247,492)		44,814,299
Janus Aspen Series – Global Technology Portfolio – Service Shares (JanGlTech) 3,874,051 shares (cost $12,780,250)		16,542,197
Janus Aspen Series – INTECH Risk-Managed Core Portfolio – Service Shares (JanRMgCore) 42,218 shares (cost $558,977)		536,163
Janus Aspen Series – International Growth Portfolio – Service II Shares (JanIntGroS2) 172,800 shares (cost $7,535,221)		8,778,232
Janus Aspen Series – International Growth Portfolio – Service Shares (JanIntGroS) 1,202,260 shares (cost $34,389,454)		60,846,373
JPMorgan Insurance Trust – JPMorgan Insurance Trust Diversified Mid Cap Growth Portfolio 1 (JPMMidCapGr) 186,972 shares (cost $3,678,340)		3,975,025
JPMorgan Insurance Trust – JPMorgan Insurance Trust Diversified Mid Cap Value Portfolio 1 (JPMMidCapV) 18,509 shares (cost $293,453)		307,804
Lord Abbett Series Mid Cap Value Fund – Class VC (LAMidCapV) 30,695 shares (cost $671,467)		668,544
MFS® Variable Insurance Trust – Investors Growth Stock Series – Initial Class (MFSInvGrStl) 420,753 shares (cost $3,915,870)		4,481,019
MFS® Variable Insurance Trust – Value Series – Initial Class (MFSValueI) 253,212 shares (cost $3,257,729)		3,676,633
Neuberger Berman Advisers Management Trust – Fasciano Portfolio – Class S (NBAMTFasc) 106,530 shares (cost $1,501,732)		1,547,881
Neuberger Berman Advisers Management Trust – Guardian Portfolio – I Class Shares (NBAMTGuard) 707,237 shares (cost $10,512,073)		13,939,650
Neuberger Berman Advisers Management Trust – International Portfolio – Class S (NBAMTInt) 142,966 shares (cost $1,809,583)		2,042,985
Neuberger Berman Advisers Management Trust – Limited Maturity Bond Portfolio – Class I (NBAMTLMat) 761,477 shares (cost $9,761,133)		9,716,452
Neuberger Berman Advisers Management Trust – Mid Cap Growth Portfolio – I Class Shares (NBAMTMCGr) 1,806,470 shares (cost $27,018,604)		42,018,501

(Continued)

6

NATIONWIDE VLI SEPARATE ACCOUNT– 4

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

Neuberger Berman Advisers Management Trust – Partners Portfolio® – Class I (NBAMTPart) 978,518 shares (cost $19,050,352)	$	20,705,440
Neuberger Berman Advisers Management Trust – Regency Portfolio – Class I (NBAMTRegI) 26,040 shares (cost $409,838)		422,116
Neuberger Berman Advisers Management Trust – Regency Portfolio – Class S (NBAMTRegS) 46,494 shares (cost $790,840)		806,676
Neuberger Berman Advisers Management Trust – Socially Responsive Portfolio® – Class I (NBAMTSocRes) 163,205 shares (cost $2,420,411)		2,727,161
Oppenheimer Global Securities Fund/VA – Class 3 (OppGlSec3) 458,259 shares (cost $14,922,739)		16,950,987
Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA – Non-Service Shares (OppCapAp) 2,971,299 shares (cost $99,367,749)		123,100,924
Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA – Non-Service Shares (OppGlSec) 1,948,941 shares (cost $56,623,557)		71,701,536
Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA – Non-Service Shares (OppHighInc) 517,182 shares (cost $4,234,120)		4,421,910
Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA – Non-Service Shares (OppMSt) 1,786,786 shares (cost $33,583,588)		44,276,545
Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA – Non-Service Shares (OppMStSCap) 235,721 shares (cost $3,927,088)		4,514,056
Oppenheimer Variable Account Funds – Oppenheimer Mid Cap Fund/VA – Non-Service Shares (OppMidCap) 937,676 shares (cost $37,096,758)		47,680,845
PIMCO Variable Insurance Trust – PIMCO VIT All Asset Portfolio – Administrative Shares (PVITAllAst) 131,681 shares (cost $1,542,958)		1,536,715
PIMCO Variable Insurance Trust – PIMCO VIT Low Duration Portfolio – Administrative Shares (PVITLowDur) 4,025,170 shares (cost $40,862,629)		40,493,211
PIMCO Variable Insurance Trust – PIMCO VIT Real Return Portfolio – Administrative Shares (PVITRealRet) 3,611,424 shares (cost $45,959,037)		43,084,286
PIMCO Variable Insurance Trust – PIMCO VIT Total Return Portfolio – Administrative Shares (PVITTotRet) 12,271,879 shares (cost $126,339,431)		124,191,419
Pioneer Variable Contracts Trust – Pioneer High Yield VCT Portfolio – Class I (PioHiYield) 1,242,048 shares (cost $13,771,348)		13,674,952
Putnam Variable Trust – Putnam VT Growth and Income Fund – IB Shares (PVTGroIncIB) 45,422 shares (cost $1,117,108)		1,333,587
Putnam Variable Trust – Putnam VT International Equity Fund – IB Shares (PVTIntEqIB) 235,183 shares (cost $4,035,222)		4,854,171
Putnam Variable Trust – Putnam VT Voyager Fund – IB Shares (PVTVoyIB) 13,279 shares (cost $356,622)		399,304
Royce Capital Fund – Micro Cap (RCFMicroCap) 3,401,475 shares (cost $44,327,178)		48,981,238
T. Rowe Price Blue Chip Growth Portfolio – II (TRoeBlChip2) 139,079 shares (cost $1,362,968)		1,447,816
T. Rowe Price Equity Income Portfolio – II (TRowEqInc2) 3,661,397 shares (cost $82,754,741)		90,802,651

(Continued)

7

NATIONWIDE VLI SEPARATE ACCOUNT– 4

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

T. Rowe Price Limited Term Bond Portfolio – Class II (TRowLtdTBd2) 110,939 shares (cost $539,063)	$	543,601
T. Rowe Price Mid Cap Growth Fund – II (TRowMidCap2) 960,746 shares (cost $23,741,289)		22,712,038
T. Rowe Price New America Growth Portfolio (TRowNewAmGr) 525,438 shares (cost $10,575,171)		11,307,436
Van Eck Worldwide Insurance Trust – Worldwide Emerging Markets Fund – Initial Class (VEWrldEMkt) 802,182 shares (cost $13,715,199)		20,038,504
Van Eck Worldwide Insurance Trust – Worldwide Hard Assets Fund – Initial Class (VEWrldHAs) 646,373 shares (cost $18,093,371)		21,142,859
Van Kampen – The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio – Class I (VKCorPlus) 193,244 shares (cost $2,203,897)		2,202,976
Van Kampen – The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio – Class I (VKEmMkt) 1,239,586 shares (cost $10,806,879)		11,057,110
Van Kampen – The Universal Institutional Funds, Inc. – Mid Cap Growth Portfolio – Class I (VKMidCapG) 477,081 shares (cost $5,945,767)		5,953,967
Van Kampen – The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio – Class I (VKUSRealEst) 3,427,634 shares (cost $67,012,332)		100,635,320
W&R Target Funds, Inc. – Growth Portfolio (WRGrowth) 2,355 shares (cost $22,205)		23,034
W&R Target Funds, Inc. – Real Estate Securities Portfolio (WRRealEstS) 5,316 shares (cost $42,450)		46,660
Wells Fargo Advantage Variable Trust FundsSM – Wells Fargo Advantage VT Opportunity FundSM (WFAVTOpp) 1,187,655 shares (cost $24,586,942)		28,527,468
Total Investments		4,464,356,693
Accounts Receivable		85,675
Total Assets		4,464,442,368
Accounts Payable		–
Contract Owners Equity (note 7)	$	4,464,442,368

See accompanying notes to financial statements.

8

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS

Year Ended December 31, 2006

Investment activity:	Total			AIMBValue		AIMCapAp		AIMCapDev		AIMIntGr		AlVPGrIncA		AlVPIntlValA		AlVPSmMdCpA
Reinvested dividends	$	76,672,957		32,041		861		–		181,003		242,130		40,289		15,779
Mortality and expense risk charges (note 3)		(5,541,637	)	(6,338	)	–		(23,827	)	(54,749	)	(41,644	)	(13,250	)	–
Net investment income (loss)		71,131,320		25,703		861		(23,827	)	126,254		200,486		27,039		15,779
Proceeds from mutual fund shares sold		1,140,316,057		1,312,530		149,409		5,068,843		10,649,205		4,235,798		907,194		1,348,047
Cost of mutual fund shares sold		(973,419,401	)	(1,187,147	)	(126,912	)	(4,136,768	)	(8,352,632	)	(3,616,448	)	(1,003,049	)	(1,175,240	)
Realized gain (loss) on investments		166,896,656		125,383		22,497		932,075		2,296,573		619,350		(95,855	)	172,807
Change in unrealized gain (loss) on investments		167,698,301		446,439		64,228		577,441		1,887,880		1,156,397		1,454,350		2,419
Net gain (loss) on investments		334,594,957		571,822		86,725		1,509,516		4,184,453		1,775,747		1,358,495		175,226
Reinvested capital gains		96,963,068		354,271		–		214,763		–		880,352		52,921		260,883
Net increase (decrease) in contract owners’ equity resulting from operations	$	502,689,345		951,796		87,586		1,700,452		4,310,707		2,856,585		1,438,455		451,888
Investment activity:	ACVPIncGr			ACVPInfPro2		ACVPInt		ACVPInt3		ACVPMdCpV		ACVPUltra		ACVPVal		ACVPVista
Reinvested dividends	$	519,756		222,068		739,624		85,854		7,230		–		994,811		–
Mortality and expense risk charges (note 3)		(12,859	)	–		(56,549	)	–		–		(4,670	)	(50,875	)	(376	)
Net investment income (loss)		506,897		222,068		683,075		85,854		7,230		(4,670	)	943,936		(376	)
Proceeds from mutual fund shares sold		4,648,196		2,252,459		9,940,290		494,584		887,042		4,235,748		20,855,281		80,964
Cost of mutual fund shares sold		(3,088,338	)	(2,337,933	)	(6,294,596	)	(387,875	)	(847,196	)	(3,886,034	)	(16,727,267	)	(75,406	)
Realized gain (loss) on investments		1,559,858		(85,474	)	3,645,694		106,709		39,846		349,714		4,128,014		5,558
Change in unrealized gain (loss) on investments		2,321,259		(15,319	)	6,143,566		1,216,942		69,490		(515,226	)	598,190		(3,442	)
Net gain (loss) on investments		3,881,117		(100,793	)	9,789,260		1,323,651		109,336		(165,512	)	4,726,204		2,116
Reinvested capital gains		–		–		–		–		36,808		–		6,275,420		410
Net increase (decrease) in contract owners’ equity resulting from operations	$	4,388,014		121,275		10,472,335		1,409,505		153,374		(170,182	)	11,945,560		2,150

(Continued)

9

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006

Investment activity:	BCFTCpAsset			BRIntIndex		BRLrgCp		CalVSSoEq		CSTGlSmCp		CSTIntFoc		CSTLCapV		DryIPMidCap
Reinvested dividends	$	–		52,652		14,810		–		–		19,749		15,350		3,849
Mortality and expense risk charges (note 3)		(37,388	)	(2,405	)	(5,231	)	(194	)	(325	)	(222	)	(122	)	(2,586	)
Net investment income (loss)		(37,388	)	50,247		9,579		(194	)	(325	)	19,527		15,228		1,263
Proceeds from mutual fund shares sold		7,498,261		63,114		1,037,974		5,399		249,680		266,153		477,831		1,649,229
Cost of mutual fund shares sold		(6,787,398	)	(55,033	)	(969,795	)	(4,952	)	(131,828	)	(176,919	)	(390,984	)	(1,669,226	)
Realized gain (loss) on investments		710,863		8,081		68,179		447		117,852		89,234		86,847		(19,997	)
Change in unrealized gain (loss) on investments		1,013,385		(180,415	)	(10,146	)	10,994		(23,716	)	224,640		203,991		(77,469	)
Net gain (loss) on investments		1,724,248		(172,334	)	58,033		11,441		94,136		313,874		290,838		(97,466	)
Reinvested capital gains		–		331,284		213,679		–		–		–		–		164,113
Net increase (decrease) in contract owners’ equity resulting from operations	$	1,686,860		209,197		281,291		11,247		93,811		333,401		306,066		67,910
Investment activity:	DryIPSmCap			DrySRGro		DryStkIx		DryVIApp		DryVIDevLd		DryVIIntVal		DWSVHghRtrn		FedAmLead
Reinvested dividends	$	87,107		15,965		6,273,092		505,780		3,628		453,326		–		4,783
Mortality and expense risk charges (note 3)		(38,112	)	(2,670	)	(573,852	)	(38,526	)	–		(90,105	)	(84	)	–
Net investment income (loss)		48,995		13,295		5,699,240		467,254		3,628		363,221		(84	)	4,783
Proceeds from mutual fund shares sold		4,827,780		1,764,978		88,226,557		6,938,954		312,992		11,269,703		276		32,187
Cost of mutual fund shares sold		(4,215,687	)	(1,820,385	)	(76,329,079	)	(5,358,553	)	(293,787	)	(8,828,263	)	(260	)	(28,531	)
Realized gain (loss) on investments		612,093		(55,407	)	11,897,478		1,580,401		19,205		2,441,440		16		3,656
Change in unrealized gain (loss) on investments		1,659,449		1,370,321		35,413,947		3,002,962		(67,857	)	1,821,727		3,015		3,909
Net gain (loss) on investments		2,271,542		1,314,914		47,311,425		4,583,363		(48,652	)	4,263,167		3,031		7,565
Reinvested capital gains		494,024		–		–		–		75,020		2,561,432		6,415		39,581
Net increase (decrease) in contract owners’ equity resulting from operations	$	2,814,561		1,328,209		53,010,665		5,050,617		29,996		7,187,820		9,362		51,929

(Continued)

10

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006

Investment activity:	FedCapAp			FedMrkOp		FedQualBd		FidVIPEIS		FidVIPGrS		FidVIPHIS		FidVIPOvS		FidVIPOvSR
Reinvested dividends	$	2,870		–		3,773,553		3,262,586		272,851		1,783,894		394,047		70,073
Mortality and expense risk charges (note 3)		–		–		(100,419	)	(104,689	)	(80,921	)	(14,496	)	(74,633	)	–
Net investment income (loss)		2,870		–		3,673,134		3,157,897		191,930		1,769,398		319,414		70,073
Proceeds from mutual fund shares sold		42,635		206		53,280,307		13,139,607		14,310,827		5,105,015		15,201,025		1,212,670
Cost of mutual fund shares sold		(38,472	)	(202	)	(56,249,561	)	(9,185,768	)	(13,896,757	)	(5,335,038	)	(11,129,986	)	(929,691	)
Realized gain (loss) on investments		4,163		4		(2,969,254	)	3,953,839		414,070		(230,023	)	4,071,039		282,979
Change in unrealized gain (loss) on investments		51,818		1,096		1,422,971		(784,378	)	5,487,027		928,822		2,726,908		1,463,144
Net gain (loss) on investments		55,981		1,100		(1,546,283	)	3,169,461		5,901,097		698,799		6,797,947		1,746,123
Reinvested capital gains		–		–		–		12,637,235		–		–		306,743		52,656
Net increase (decrease) in contract owners’ equity resulting from operations	$	58,851		1,100		2,126,851		18,964,593		6,093,027		2,468,197		7,424,104		1,868,852
Investment activity:	FidVIPConS			FidVIPIGBdS		FidVIPGrOpS		FidVIPMCapS		FidVIPVaIS		FidVIPEnergyS2		FidVIPFree10S		FidVIPFree20S
Reinvested dividends	$	2,047,582		297,433		92,847		61,912		36,774		45,935		11,056		19,492
Mortality and expense risk charges (note 3)		(211,275	)	(1,085	)	(4,206	)	(12,308	)	(135	)	–		–		–
Net investment income (loss)		1,836,307		296,348		88,641		49,604		36,639		45,935		11,056		19,492
Proceeds from mutual fund shares sold		29,978,822		515,297		4,134,859		6,009,399		1,090,045		2,595,083		122,743		76,109
Cost of mutual fund shares sold		(18,278,897	)	(535,244	)	(3,493,942	)	(4,571,315	)	(1,056,473	)	(2,352,583	)	(115,515	)	(69,962	)
Realized gain (loss) on investments		11,699,925		(19,947	)	640,917		1,438,084		33,572		242,500		7,228		6,147
Change in unrealized gain (loss) on investments		(9,318,194	)	100,550		(47,920	)	(1,316,944	)	(146,173	)	(797,228	)	19,784		71,282
Net gain (loss) on investments		2,381,731		80,603		592,997		121,140		(112,601	)	(554,728	)	27,012		77,429
Reinvested capital gains		15,541,966		18,136		–		2,795,083		1,229,164		1,001,993		2,850		12,045
Net increase (decrease) in contract owners’ equity resulting from operations	$	19,760,004		395,087		681,638		2,965,827		1,153,202		493,200		40,918		108,966

(Continued)

11

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006

Investment activity:	FidVIPFree30S			FrVIPIncSec2		FrVIPRisDiv		FrVIPSmCapV1		FrVIPSmCapV2		FrVIPDevMrk3		FrVIPForSec		FrVIPForSec2
Reinvested dividends	$	8,990		329		169,336		70,843		23,455		51,034		52,262		199,321
Mortality and expense risk charges (note 3)		–		–		–		–		(9,728	)	–		–		(50,795	)
Net investment income (loss)		8,990		329		169,336		70,843		13,727		51,034		52,262		148,526
Proceeds from mutual fund shares sold		65,452		129,161		2,043,331		1,699,219		2,019,376		1,120,842		1,025,895		6,710,883
Cost of mutual fund shares sold		(58,793	)	(124,095	)	(1,727,549	)	(1,267,977	)	(1,779,049	)	(909,770	)	(765,817	)	(5,319,858	)
Realized gain (loss) on investments		6,659		5,066		315,782		431,242		240,327		211,072		260,078		1,391,025
Change in unrealized gain (loss) on investments		31,837		44,817		1,648,834		535,635		154,996		648,770		419,827		1,461,209
Net gain (loss) on investments		38,496		49,883		1,964,616		966,877		395,323		859,842		679,905		2,852,234
Reinvested capital gains		6,386		44		68,181		298,012		131,249		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	53,872		50,256		2,202,133		1,335,732		540,299		910,876		732,167		3,000,760
Investment activity:	FrVIPForSec3			FrVIPGlInc3		GVITAstAll2		GVITBnd2		GVITGlobGr2		GVITGrowth2		GVITIntValI		GVITIntVal3
Reinvested dividends	$	58,304		29,118		28,982		2,413		1,684		10,186		65,708		123,878
Mortality and expense risk charges (note 3)		–		–		–		–		–		–		–		–
Net investment income (loss)		58,304		29,118		28,982		2,413		1,684		10,186		65,708		123,878
Proceeds from mutual fund shares sold		770,445		367,698		35,153		9,429		72,853		88,718		850,592		1,569,833
Cost of mutual fund shares sold		(639,925	)	(350,001	)	(35,500	)	(9,429	)	(73,063	)	(90,919	)	(728,806	)	(1,347,260	)
Realized gain (loss) on investments		130,520		17,697		(347	)	–		(210	)	(2,201	)	121,786		222,573
Change in unrealized gain (loss) on investments		667,348		73,043		50,812		8,969		100,276		69,921		262,686		496,243
Net gain (loss) on investments		797,868		90,740		50,465		8,969		100,066		67,720		384,472		718,816
Reinvested capital gains		–		–		–		–		–		–		202,934		403,845
Net increase (decrease) in contract owners’ equity resulting from operations	$	856,172		119,858		79,447		11,382		101,750		77,906		653,114		1,246,539

(Continued)

12

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006

Investment activity:	GVITEmMrkts			GVITEmMrkts3		GVITFHiInc		GVITFHiInc3		GVITGlFin		GVITGlHlth		GVITGlHlth3		GVITGlTech
Reinvested dividends	$	173,849		71,767		1,789,146		475,086		82,129		–		–		–
Mortality and expense risk charges (note 3)		(48,942	)	–		(27,257	)	–		(3,414	)	(3,910	)	–		(7,319	)
Net investment income (loss)		124,907		71,767		1,761,889		475,086		78,715		(3,910	)	–		(7,319	)
Proceeds from mutual fund shares sold		6,470,923		2,724,119		5,306,340		1,596,636		831,679		1,641,657		1,235,737		1,764,226
Cost of mutual fund shares sold		(4,271,953	)	(2,293,879	)	(5,369,110	)	(1,611,819	)	(744,558	)	(1,600,845	)	(1,329,111	)	(1,695,917	)
Realized gain (loss) on investments		2,198,970		430,240		(62,770	)	(15,183	)	87,121		40,812		(93,374	)	68,309
Change in unrealized gain (loss) on investments		4,849,580		2,317,091		711,651		168,615		41,527		68,815		104,691		460,052
Net gain (loss) on investments		7,048,550		2,747,331		648,881		153,432		128,648		109,627		11,317		528,361
Reinvested capital gains		275,455		116,408		–		–		557,756		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	7,448,912		2,935,506		2,410,770		628,518		765,119		105,717		11,317		521,042
Investment activity:	GVITGlTech3			GVITGlUtl		GVITGvtBd		GVITGrowth		GVITIntGro		GVITIntIdx6		GVITIDAgg2		GVITIDCon2
Reinvested dividends	$	–		81,320		4,446,214		8,651		54,417		2,038		437,711		391,302
Mortality and expense risk charges (note 3)		–		(1,074	)	(171,857	)	(2,159	)	(2,750	)	–		(15,916	)	(11,395	)
Net investment income (loss)		–		80,246		4,274,357		6,492		51,667		2,038		421,795		379,907
Proceeds from mutual fund shares sold		1,410,326		835,865		52,330,913		1,430,837		1,306,433		16,301		3,167,832		2,565,439
Cost of mutual fund shares sold		(1,333,461	)	(835,853	)	(56,485,655	)	(1,324,800	)	(908,396	)	(16,454	)	(2,525,304	)	(2,580,152	)
Realized gain (loss) on investments		76,865		12		(4,154,742	)	106,037		398,037		(153	)	642,528		(14,713	)
Change in unrealized gain (loss) on investments		104,554		680,567		2,016,604		848,404		1,594,606		16,309		1,918,101		238,962
Net gain (loss) on investments		181,419		680,579		(2,138,138	)	954,441		1,992,643		16,156		2,560,629		224,249
Reinvested capital gains		–		232,606		841,510		–		11,773		–		295,325		123,826
Net increase (decrease) in contract owners’ equity resulting from operations	$	181,419		993,431		2,977,729		960,933		2,056,083		18,194		3,277,749		727,982

(Continued)

13

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006

Investment activity:	GVITIDMod2			GVITIDModAg2		GVITIDModCon2		GVITJPBal		GVITMdCpGr		GVITMdCpIdx		GVITMyMkt		GVITMyMkt5
Reinvested dividends	$	1,360,211		1,331,756		669,778		426,226		–		891,863		5,084,140		11,460,488
Mortality and expense risk charges (note 3)		(32,713	)	(15,383	)	(40,367	)	(9,847	)	(4,698	)	(110,551	)	(26,225	)	(603,177	)
Net investment income (loss)		1,327,498		1,316,373		629,411		416,379		(4,698	)	781,312		5,057,915		10,857,311
Proceeds from mutual fund shares sold		4,262,118		7,165,706		3,903,298		5,633,377		2,420,730		21,192,088		46,839,425		161,956,036
Cost of mutual fund shares sold		(3,300,097	)	(5,279,014	)	(3,435,331	)	(4,282,829	)	(1,917,648	)	(13,141,753	)	(46,839,425	)	(161,956,036	)
Realized gain (loss) on investments		962,021		1,886,692		467,967		1,350,548		503,082		8,050,335		–		–
Change in unrealized gain (loss) on investments		3,146,924		4,291,540		474,133		439,493		1,011,753		(3,099,405	)	–		–
Net gain (loss) on investments		4,108,945		6,178,232		942,100		1,790,041		1,514,835		4,950,930		–		–
Reinvested capital gains		502,972		725,912		317,513		–		–		1,086,719		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	5,939,415		8,220,517		1,889,024		2,206,420		1,510,137		6,818,961		5,057,915		10,857,311
Investment activity:	GVITNWFund			GVITNWLead		GVITSmCapGr		GVITSmCapVal		GVITSmComp		GVITUSGro		GVITVKVal		GVITMltSec
Reinvested dividends	$	5,353,612		7,659		–		365,644		109,739		18,585		216,872		722,676
Mortality and expense risk charges (note 3)		(451,840	)	(228	)	(23,290	)	(83,613	)	(171,261	)	(4,486	)	(1,141	)	(19,720	)
Net investment income (loss)		4,901,772		7,431		(23,290	)	282,031		(61,522	)	14,099		215,731		702,956
Proceeds from mutual fund shares sold		7,831,584		406,874		13,304,567		32,381,732		41,341,579		2,067,982		2,446,309		5,309,683
Cost of mutual fund shares sold		(6,429,339	)	(406,136	)	(11,168,294	)	(20,312,718	)	(28,211,862	)	(2,136,302	)	(1,834,717	)	(5,294,952	)
Realized gain (loss) on investments		1,402,245		738		2,136,273		12,069,014		13,129,717		(68,320	)	611,592		14,731
Change in unrealized gain (loss) on investments		56,960,310		83,224		(1,500,638	)	(5,079,969	)	(3,983,920	)	(200,490	)	499,983		51,097
Net gain (loss) on investments		58,362,555		83,962		635,635		6,989,045		9,145,797		(268,810	)	1,111,575		65,828
Reinvested capital gains		–		113,501		–		6,169,351		2,239,910		130,686		577,219		38,017
Net increase (decrease) in contract owners’ equity resulting from operations	$	63,264,327		204,894		612,345		13,440,427		11,324,185		(124,025	)	1,904,525		806,801

(Continued)

14

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006

Investment activity:	GVITWLead			GSVMdCpV		JanBal		JanForty		JanGlTech		JanRMgCore		JanIntGroS2		JanIntGroS
Reinvested dividends	$	46,359		621,541		159,786		61,155		–		677		75,317		1,035,189
Mortality and expense risk charges (note 3)		(1,399	)	(174,173	)	(18,830	)	(41,598	)	(4,761	)	–		–		(47,359	)
Net investment income (loss)		44,960		447,368		140,956		19,557		(4,761	)	677		75,317		987,830
Proceeds from mutual fund shares sold		1,316,353		14,591,447		7,262,058		11,584,344		3,242,307		229,916		32,369		14,879,293
Cost of mutual fund shares sold		(918,807	)	(13,064,165	)	(6,543,076	)	(7,532,018	)	(2,514,799	)	(236,085	)	(32,201	)	(6,333,432	)
Realized gain (loss) on investments		397,546		1,527,282		718,982		4,052,326		727,508		(6,169	)	168		8,545,861
Change in unrealized gain (loss) on investments		800,472		565,343		(247,691	)	(196,228	)	489,592		21,541		1,243,011		10,808,316
Net gain (loss) on investments		1,198,018		2,092,625		471,291		3,856,098		1,217,100		15,372		1,243,179		19,354,177
Reinvested capital gains		–		6,847,239		–		–		–		42,380		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	1,242,978		9,387,232		612,247		3,875,655		1,212,339		58,429		1,318,496		20,342,007
Investment activity:	JPMMidCapGr			JPMMidCapV		LAMidCapV		MFSInvGrStl		MFSValueI		NBAMTFasc		NBAMTGuard		NBAMTInt
Reinvested dividends	$	–		7,753		3,175		–		24,098		–		107,565		3,750
Mortality and expense risk charges (note 3)		(10,359	)	(1,589	)	(923	)	–		–		(1,815	)	(11,914	)	–
Net investment income (loss)		(10,359	)	6,164		2,252		–		24,098		(1,815	)	95,651		3,750
Proceeds from mutual fund shares sold		1,702,801		819,944		131,349		498,780		520,990		878,956		5,255,264		468,773
Cost of mutual fund shares sold		(1,471,657	)	(815,609	)	(127,781	)	(438,872	)	(416,201	)	(800,314	)	(3,009,402	)	(404,385	)
Realized gain (loss) on investments		231,144		4,335		3,568		59,908		104,789		78,642		2,245,862		64,388
Change in unrealized gain (loss) on investments		(10,397	)	(30,208	)	1,310		247,242		286,163		(36,527	)	(418,853	)	183,156
Net gain (loss) on investments		220,747		(25,873	)	4,878		307,150		390,952		42,115		1,827,009		247,544
Reinvested capital gains		109,584		98,910		49,476		–		68,117		45,103		–		13,829
Net increase (decrease) in contract owners’ equity resulting from operations	$	319,972		79,201		56,606		307,150		483,167		85,403		1,922,660		265,123

(Continued)

15

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006

Investment activity:	NBAMTLMat			NBAMTMCGr		NBAMTPart		NBAMTRegI		NBAMTRegS		NBAMTSocRes		OppGlSec3		OppCapAp
Reinvested dividends	$	272,797		–		145,279		1,603		3,419		3,512		109,643		492,032
Mortality and expense risk charges (note 3)		–		(22,024	)	(8,489	)	(873	)	–		–		–		(202,004	)
Net investment income (loss)		272,797		(22,024	)	136,790		730		3,419		3,512		109,643		290,028
Proceeds from mutual fund shares sold		1,679,761		4,158,296		9,014,252		185,941		422,457		427,871		1,586,318		31,207,155
Cost of mutual fund shares sold		(1,696,908	)	(2,254,637	)	(6,078,285	)	(200,746	)	(414,879	)	(343,792	)	(1,369,633	)	(24,649,134	)
Realized gain (loss) on investments		(17,147	)	1,903,659		2,935,967		(14,805	)	7,578		84,079		216,685		6,558,021
Change in unrealized gain (loss) on investments		113,979		3,585,864		(2,822,988	)	12,278		8,407		177,186		1,264,016		2,466,146
Net gain (loss) on investments		96,832		5,489,523		112,979		(2,527	)	15,985		261,265		1,480,701		9,024,167
Reinvested capital gains		–		–		2,237,618		22,223		47,400		24,933		573,997		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	369,629		5,467,499		2,487,387		20,426		66,804		289,710		2,164,341		9,314,195
Investment activity:	OppGlSec			OppHighInc		OppMSt		OppMStSCap		OppMidCap		PVITAllAst		PVITLowDur		PVITRealRet
Reinvested dividends	$	783,099		258,840		454,051		4,810		–		137,089		1,681,826		1,704,599
Mortality and expense risk charges (note 3)		(129,203	)	–		(15,084	)	–		(45,719	)	(8,507	)	(105,255	)	(117,653	)
Net investment income (loss)		653,896		258,840		438,967		4,810		(45,719	)	128,582		1,576,571		1,586,946
Proceeds from mutual fund shares sold		22,784,327		3,629,272		5,548,846		713,142		11,086,192		3,064,536		13,164,309		9,633,598
Cost of mutual fund shares sold		(13,970,780	)	(3,647,900	)	(3,585,596	)	(556,974	)	(7,115,910	)	(3,001,558	)	(13,483,942	)	(9,963,661	)
Realized gain (loss) on investments		8,813,547		(18,628	)	1,963,250		156,168		3,970,282		62,978		(319,633	)	(330,063	)
Change in unrealized gain (loss) on investments		(1,859,919	)	119,146		3,463,093		210,349		(2,446,101	)	(54,520	)	210,497		(2,320,724	)
Net gain (loss) on investments		6,953,628		100,518		5,426,343		366,517		1,524,181		8,458		(109,136	)	(2,650,787	)
Reinvested capital gains		4,090,534		–		–		94,934		–		3,877		–		1,140,949
Net increase (decrease) in contract owners’ equity resulting from operations	$	11,698,058		359,358		5,865,310		466,261		1,478,462		140,917		1,467,435		77,108

(Continued)

16

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006

Investment activity:	PVITTotRet			PioHiYield		PVTGroIncIB		PVTIntEqIB		PVTVoyIB		RCFMicroCap		TRoeBlChip2		TRowEqInc2
Reinvested dividends	$	4,529,999		678,616		18,028		12,530		389		84,130		2,764		1,073,160
Mortality and expense risk charges (note 3)		(280,433	)	(32,699	)	–		–		–		(139,651	)	–		(208,820	)
Net investment income (loss)		4,249,566		645,917		18,028		12,530		389		(55,521	)	2,764		864,340
Proceeds from mutual fund shares sold		26,174,855		2,477,738		197,400		1,536,330		59,294		23,927,519		386,177		30,121,040
Cost of mutual fund shares sold		(26,924,213	)	(2,618,082	)	(161,769	)	(1,160,522	)	(52,368	)	(19,647,182	)	(366,047	)	(26,662,690	)
Realized gain (loss) on investments		(749,358	)	(140,344	)	35,631		375,808		6,926		4,280,337		20,130		3,458,350
Change in unrealized gain (loss) on investments		(291,320	)	323,000		102,959		520,130		12,151		1,284,180		75,614		7,085,486
Net gain (loss) on investments		(1,040,678	)	182,656		138,590		895,938		19,077		5,564,517		95,744		10,543,836
Reinvested capital gains		654,903		171,999		28,081		–		–		2,562,710		–		2,346,470
Net increase (decrease) in contract owners’ equity resulting from operations	$	3,863,791		1,000,572		184,699		908,468		19,466		8,071,706		98,508		13,754,646
Investment activity:	TRowLtdTBd2			TRowMidCap2		TRowNewAmGr		VEWrldEMkt		VEWrldHAs		VKCorPlus		VKEmMkt		VKMidCapG
Reinvested dividends	$	13,800		–		5,033		92,327		12,151		77,741		1,349,346		–
Mortality and expense risk charges (note 3)		–		(70,941	)	(41,086	)	(7,389	)	(16,284	)	–		(18,687	)	(9,401	)
Net investment income (loss)		13,800		(70,941	)	(36,053	)	84,938		(4,133	)	77,741		1,330,659		(9,401	)
Proceeds from mutual fund shares sold		141,187		15,288,789		10,060,186		3,430,052		10,778,845		442,354		10,392,600		3,313,020
Cost of mutual fund shares sold		(142,752	)	(12,870,125	)	(9,891,776	)	(2,146,049	)	(6,215,920	)	(450,957	)	(10,439,043	)	(2,533,317	)
Realized gain (loss) on investments		(1,565	)	2,418,664		168,410		1,284,003		4,562,925		(8,603	)	(46,443	)	779,703
Change in unrealized gain (loss) on investments		5,730		(4,201,040	)	86,063		2,758,263		(1,696,211	)	542		(428,311	)	(658,265	)
Net gain (loss) on investments		4,165		(1,782,376	)	254,473		4,042,266		2,866,714		(8,061	)	(474,754	)	121,438
Reinvested capital gains		–		2,767,140		140,937		1,453,634		1,034,045		10,330		293,124		414,443
Net increase (decrease) in contract owners’ equity resulting from operations	$	17,965		913,823		359,357		5,580,838		3,896,626		80,010		1,149,029		526,480

(Continued)

17

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006

Investment activity:	VKUSRealEst			WRGrowth		WRRealEstS		WFAVTOpp
Reinvested dividends	$	890,502		–		313		–
Mortality and expense risk charges (note 3)		(102,412	)	(1,761	)	(67	)	(26,293	)
Net investment income (loss)		788,090		(1,761	)	246		(26,293	)
Proceeds from mutual fund shares sold		11,297,939		1,000,430		5,588		7,384,959
Cost of mutual fund shares sold		(5,052,860	)	(1,074,726	)	(5,108	)	(4,366,298	)
Realized gain (loss) on investments		6,245,079		(74,296	)	480		3,018,661
Change in unrealized gain (loss) on investments		14,169,666		829		4,210		(2,833,629	)
Net gain (loss) on investments		20,414,745		(73,467	)	4,690		185,032
Reinvested capital gains		5,346,275		–		1,120		3,200,397
Net increase (decrease) in contract owners’ equity resulting from operations	$	26,549,110		(75,228	)	6,056		3,359,136

See accompanying notes to financial statements.

18

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2006 and 2005

	Total					AIMBValue				AIMCapAp				AIMCapDev
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	71,131,320		53,182,934		25,703		(2,946	)	861		242		(23,827	)	(16,945	)
Realized gain (loss) on investments		166,896,656		116,451,853		125,383		537,711		22,497		31,267		932,075		528,321
Change in unrealized gain (loss) on investments		167,698,301		34,976,679		446,439		(107,374	)	64,228		67,254		577,441		442,622
Reinvested capital gains		96,963,068		61,380,612		354,271		76,238		–		–		214,763		–
Net increase (decrease) in contract owners’ equity resulting from operations		502,689,345		265,992,078		951,796		503,629		87,586		98,763		1,700,452		953,998
Equity transactions:
Purchase payments received from contract owners (note 6)		573,057,603		715,520,140		1,176,451		1,360,376		237,149		212,666		1,353,692		1,247,716
Transfers between funds		–		–		296,702		3,869,968		201,737		295,260		1,319,907		8,121,858
Surrenders (note 6)		(387,471,327	)	(534,517,966	)	(218,710	)	(4,766,502	)	(63,473	)	(29,876	)	(524,411	)	(4,134,776	)
Death benefits (note 4)		(9,884,896	)	(5,693,704	)	(23,642	)	(9,522	)	(152	)	–		(6,487	)	(5,288	)
Net policy repayments (loans) (note 5)		(17,332,223	)	(20,641,828	)	(49,371	)	(79,638	)	(32,507	)	(11,600	)	(22,732	)	(7,148	)
Deductions for surrender charges (note 2d)		(7,673,977	)	(8,904,284	)	(25,638	)	(27,640	)	(11,034	)	(4,456	)	(7,078	)	(5,342	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(129,174,617	)	(135,001,808	)	(375,194	)	(398,236	)	(88,470	)	(81,872	)	(457,957	)	(268,490	)
Asset charges (note 3):
FPVUL & VEL contracts		(6,179,710	)	(5,334,262	)	(20,591	)	(14,696	)	(4,559	)	(3,125	)	(12,480	)	(8,692	)
MSP contracts		(268,091	)	(228,393	)	(331	)	(195	)	(52	)	(17	)	(272	)	(132	)
SL contracts		(1,272,062	)	(1,248,349	)	(2,357	)	(1,327	)	(1,757	)	(334	)	(744	)	(539	)
Adjustments to maintain reserves		53,319		61,021		462		112		10		17		8,280		92
Net equity transactions		13,854,019		4,010,567		757,781		(67,300	)	236,892		376,663		1,649,718		4,939,259
Net change in contract owners’ equity		516,543,364		270,002,645		1,709,577		436,329		324,478		475,426		3,350,170		5,893,257
Contract owners’ equity beginning 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
Contract owners’ equity end of period	$	4,464,442,368		3,947,899,004		8,574,647		6,865,070		1,561,030		1,236,552		12,650,035		9,299,865
CHANGES IN UNITS:
Beginning units		302,538,590		304,571,400		445,372		441,082		85,976		57,596		556,838		222,592
Units purchased		72,274,994		162,253,438		109,212		503,212		29,998		38,251		220,422		693,638
Units redeemed		(67,050,776	)	(164,286,248	)	(62,908	)	(498,922	)	(13,870	)	(9,871	)	(127,092	)	(359,392	)
Ending units		307,762,808		302,538,590		491,676		445,372		102,104		85,976		650,168		556,838

(Continued)

19

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	AIMIntGr					AlVPGrIncA				AlVPIntlValA			AlVPSmMdCpA
Investment activity:	2006			2005		2006		2005		2006		2005	2006		2005
Net investment income (loss)	$	126,254		67,480		200,486		189,608		27,039		–	15,779		21,803
Realized gain (loss) on investments		2,296,573		119,622		619,350		1,171,785		(95,855	)	–	172,807		67,366
Change in unrealized gain (loss) on investments		1,887,880		1,425,222		1,156,397		(642,982	)	1,454,350		–	2,419		(1,411	)
Reinvested capital gains		–		–		880,352		–		52,921		–	260,883		141,546
Net increase (decrease) in contract owners’ equity resulting from operations		4,310,707		1,612,324		2,856,585		718,411		1,438,455		–	451,888		229,304
Equity transactions:
Purchase payments received from contract owners (note 6)		2,185,394		1,596,162		1,332,130		1,709,656		526,879		–	475,185		488,538
Transfers between funds		2,244,556		8,876,650		(847,376	)	2,819,960		11,770,029		–	(661,700	)	35,444
Surrenders (note 6)		(4,336,178	)	(5,190	)	(267,171	)	(2,418,228	)	(1,408,723	)	–	(159,244	)	(61,736	)
Death benefits (note 4)		(15,626	)	–		(8,311	)	(79,996	)	–		–	(2,134	)	–
Net policy repayments (loans) (note 5)		(196	)	(1,274	)	(46,911	)	(31,234	)	–		–	(50,912	)	(41,662	)
Deductions for surrender charges (note 2d)		–		–		(13,479	)	(7,968	)	–		–	(6,312	)	(5,048	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(306,400	)	(132,822	)	(361,822	)	(419,302	)	(44,346	)	–	(131,298	)	(129,630	)
Asset charges (note 3):
FPVUL & VEL contracts		–		–		(13,967	)	(12,386	)	–		–	(10,153	)	(7,401	)
MSP contracts		–		–		(171	)	(165	)	–		–	(292	)	(288	)
SL contracts		–		–		(1,569	)	(1,265	)	–		–	(4,482	)	(4,426	)
Adjustments to maintain reserves		6,023		33		967		45		78		–	49		13
Net equity transactions		(222,427	)	10,333,559		(227,680	)	1,559,117		10,843,917		–	(551,293	)	273,804
Net change in contract owners’ equity		4,088,280		11,945,883		2,628,905		2,277,528		12,282,372		–	(99,405	)	503,108
Contract owners’ equity beginning of period		15,580,476		3,634,593		17,331,334		15,053,806		–		–	3,484,800		2,981,692
Contract owners’ equity end of period	$	19,668,756		15,580,476		19,960,239		17,331,334		12,282,372		–	3,385,395		3,484,800
CHANGES IN UNITS:
Beginning units		1,111,978		305,044		1,125,026		1,022,336		–		–	198,030		181,154
Units purchased		398,004		935,817		155,838		590,374		1,233,682		–	27,715		34,807
Units redeemed		(411,730	)	(128,883	)	(172,970	)	(487,684	)	(148,582	)	–	(57,609	)	(17,931	)
Ending units		1,098,252		1,111,978		1,107,894		1,125,026		1,085,100		–	168,136		198,030

(Continued)

20

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	ACVPIncGr					ACVPInfPro2				ACVPInt				ACVPInt3
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	506,897		517,495		222,068		279,396		683,075		528,468		85,854		(585	)
Realized gain (loss) on investments		1,559,858		2,059,029		(85,474	)	(4,576	)	3,645,694		5,155,451		106,709		6,347
Change in unrealized gain (loss) on investments		2,321,259		(1,421,747	)	(15,319	)	(187,807	)	6,143,566		(425,258	)	1,216,942		455,203
Reinvested capital gains		–		–		–		3,210		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		4,388,014		1,154,777		121,275		90,223		10,472,335		5,258,661		1,409,505		460,965
Equity transactions:
Purchase payments received from contract owners (note 6)		2,980,810		3,346,398		928,163		839,206		2,241,271		5,271,738		2,336,741		1,927,016
Transfers between funds		(2,604,445	)	(2,526,656	)	324,789		1,691,412		(3,443,452	)	(11,462,744	)	705,137		2,041,846
Surrenders (note 6)		(952,973	)	(2,944,928	)	(348,613	)	(201,380	)	(2,510,699	)	(6,422,696	)	(331,029	)	(63,830	)
Death benefits (note 4)		(318,302	)	(40,254	)	(22,996	)	(15,492	)	(37,490	)	(119,826	)	(49,540	)	(188	)
Net policy repayments (loans) (note 5)		(226,058	)	(214,658	)	(327,756	)	(1,112,108	)	(339,142	)	(357,330	)	132,448		58,528
Deductions for surrender charges (note 2d)		(112,887	)	(108,542	)	(19,201	)	(22,322	)	(94,716	)	(95,250	)	(36,083	)	(3,346	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(1,246,462	)	(1,457,492	)	(319,214	)	(306,238	)	(1,524,282	)	(1,868,954	)	(404,972	)	(139,062	)
Asset charges (note 3):
FPVUL & VEL contracts		(79,777	)	(76,840	)	(21,467	)	(17,180	)	(70,652	)	(76,063	)	(23,569	)	(6,536	)
MSP contracts		(5,628	)	(5,473	)	(814	)	(334	)	(2,348	)	(2,615	)	(307	)	(134	)
SL contracts		(14,084	)	(13,750	)	(2,931	)	(2,370	)	(12,441	)	(11,828	)	(3,162	)	(1,093	)
Adjustments to maintain reserves		(11	)	40		767		151		1,869		(278	)	44		180
Net equity transactions		(2,579,817	)	(4,042,155	)	190,727		853,345		(5,792,082	)	(15,145,846	)	2,325,708		3,813,381
Net change in contract owners’ equity		1,808,197		(2,887,378	)	312,002		943,568		4,680,253		(9,887,185	)	3,735,213		4,274,346
Contract owners’ equity beginning of period		27,561,408		30,448,786		5,946,060		5,002,492		44,623,339		54,510,524		4,274,346		–
Contract owners’ equity end of period	$	29,369,605		27,561,408		6,258,062		5,946,060		49,303,592		44,623,339		8,009,559		4,274,346
CHANGES IN UNITS:
Beginning units		1,931,714		2,272,060		535,932		457,932		3,726,960		5,026,876		366,150		–
Units purchased		217,280		461,365		119,512		224,700		281,367		1,632,214		251,977		384,151
Units redeemed		(370,848	)	(801,711	)	(100,204	)	(146,700	)	(654,241	)	(2,932,130	)	(69,345	)	(18,001	)
Ending units		1,778,146		1,931,714		555,240		535,932		3,354,086		3,726,960		548,782		366,150

(Continued)

21

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	ACVPMdCpV					ACVPUltra				ACVPVal				ACVPVista
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	7,230		5,225		(4,670	)	(11,798	)	943,936		517,787		(376	)	(33	)
Realized gain (loss) on investments		39,846		5		349,714		195,293		4,128,014		2,697,392		5,558		2,478
Change in unrealized gain (loss) on investments		69,490		(8,011	)	(515,226	)	(34,075	)	598,190		(6,420,369	)	(3,442	)	3,449
Reinvested capital gains		36,808		14,612		–		–		6,275,420		6,692,806		410		–
Net increase (decrease) in contract owners’ equity resulting from operations		153,374		11,831		(170,182	)	149,420		11,945,560		3,487,616		2,150		5,894
Equity transactions:
Purchase payments received from contract owners (note 6)		171,210		31,964		709,134		681,334		7,141,601		9,914,772		37,713		4,440
Transfers between funds		293,492		625,256		(386,691	)	722,844		(3,927,338	)	2,547,944		236,263		86,262
Surrenders (note 6)		(1,899	)	–		(2,621,454	)	(517,410	)	(10,120,839	)	(5,497,446	)	(10,557	)	–
Death benefits (note 4)		–		–		(47	)	(27,894	)	(279,435	)	(38,326	)	–		–
Net policy repayments (loans) (note 5)		(5,739	)	(8,410	)	(101,504	)	(31,416	)	(950,746	)	(377,446	)	(786	)	–
Deductions for surrender charges (note 2d)		(370	)	(2	)	(7,518	)	(8,196	)	(188,437	)	(213,186	)	(462	)	–
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(42,240	)	(12,338	)	(252,783	)	(313,308	)	(2,646,918	)	(2,929,280	)	(10,111	)	(1,678	)
Asset charges (note 3):
FPVUL & VEL contracts		(2,707	)	(959	)	(10,529	)	(8,003	)	(173,079	)	(159,138	)	(648	)	(103	)
MSP contracts		(68	)	–		(93	)	(56	)	(4,929	)	(4,268	)	–		–
SL contracts		(392	)	(12	)	(1,283	)	(1,095	)	(38,866	)	(42,173	)	(31	)	–
Adjustments to maintain reserves		73		49		(45,021	)	94		(54	)	(1,211	)	62		57
Net equity transactions		411,360		635,548		(2,717,789	)	496,894		(11,189,040	)	3,200,242		251,443		88,978
Net change in contract owners’ equity		564,734		647,379		(2,887,971	)	646,314		756,520		6,687,858		253,593		94,872
Contract owners’ equity beginning of period		647,379		–		6,866,248		6,219,934		74,525,122		67,837,264		94,872		–
Contract owners’ equity end of period	$	1,212,113		647,379		3,978,277		6,866,248		75,281,642		74,525,122		348,465		94,872
CHANGES IN UNITS:
Beginning units		57,178		–		607,908		562,336		4,162,374		3,973,728		8,278		–
Units purchased		36,199		59,177		79,816		373,913		433,039		1,249,834		21,632		10,582
Units redeemed		(4,385	)	(1,999	)	(324,362	)	(328,341	)	(1,057,677	)	(1,061,188	)	(1,942	)	(2,304	)
Ending units		88,992		57,178		363,362		607,908		3,537,736		4,162,374		27,968		8,278

(Continued)

22

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	BCFTCpAsset					BRIntIndex 2005				BRLrgCp				CalVSSoEq
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(37,388	)	(34,154	)	50,247		138		9,579		8,726		(194	)	(32	)
Realized gain (loss) on investments		710,863		1,664,897		8,081		29		68,179		3,475		447		5,207
Change in unrealized gain (loss) on investments		1,013,385		(1,287,251	)	(180,415	)	385		(10,146	)	2,790		10,994		(6,255	)
Reinvested capital gains		–		–		331,284		26		213,679		82,926		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		1,686,860		343,492		209,197		578		281,291		97,917		11,247		(1,080	)
Equity transactions:
Purchase payments received from contract owners (note 6)		2,174,399		2,101,360		90,420		–		190,017		179,756		19,620		14,494
Transfers between funds		(3,550,948	)	4,985,406		1,182,552		10,510		(455,857	)	1,769,830		64,665		(82,468	)
Surrenders (note 6)		(370,871	)	(6,355,608	)	(9,132	)	–		(50,505	)	(15,532	)	–		–
Death benefits (note 4)		(1,669	)	(2,882	)	–		–		–		–		–		(122	)
Net policy repayments (loans) (note 5)		(7,288	)	(15,062	)	–		–		–		–		–		–
Deductions for surrender charges (note 2d)		–		–		–		–		–		–		–		–
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(204,306	)	(242,616	)	(19,146	)	(48	)	(16,166	)	(8,628	)	(934	)	(220	)
Asset charges (note 3):
FPVUL & VEL contracts		–		–		–		–		–		–		–		–
MSP contracts		–		–		–		–		–		–		–		–
SL contracts		–		–		–		–		–		–		–		–
Adjustments to maintain reserves		(588	)	54		257		32		(119	)	26		–		18
Net equity transactions		(1,961,271	)	470,652		1,244,951		10,494		(332,630	)	1,925,452		83,351		(68,298	)
Net change in contract owners’ equity		(274,411	)	814,144		1,454,148		11,072		(51,339	)	2,023,369		94,598		(69,378	)
Contract owners’ equity beginning of period		13,206,106		12,391,962		11,072		–		2,023,369		–		36,456		105,834
Contract owners’ equity end of period	$	12,931,695		13,206,106		1,465,220		11,072		1,972,030		2,023,369		131,054		36,456
CHANGES IN UNITS:
Beginning units		812,598		785,776		952		–		174,834		–		2,606		7,916
Units purchased		133,650		729,676		101,770		957		35,154		175,601		6,249		5,197
Units redeemed		(255,480	)	(702,854	)	(2,206	)	(5	)	(60,964	)	(767	)	(315	)	(10,507	)
Ending units		690,768		812,598		100,516		952		149,024		174,834		8,540		2,606

(Continued)

23

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	CSTGlSmCp					CSTIntFoc				CSTLCapV				DryEuroEq
Investment activity:	2006			2005		2006		2005		2006		2005		2006	2005
Net investment income (loss)	$	(325	)	(346	)	19,527		14,784		15,228		13,123		–	–
Realized gain (loss) on investments		117,852		120,331		89,234		80,800		86,847		79,118		–	–
Change in unrealized gain (loss) on investments		(23,716	)	(5,473	)	224,640		179,361		203,991		52,097		–	–
Reinvested capital gains		–		–		–		–		–		–		–	–
Net increase (decrease) in contract owners’ equity resulting from operations		93,811		114,512		333,401		274,945		306,066		144,338		–	–
Equity transactions:
Purchase payments received from contract owners (note 6)		74,146		69,444		112,031		132,944		143,156		191,256		–	(4	)
Transfers between funds		(58,140	)	(20,400	)	(13,728	)	(42,562	)	2,425		14,246		–	(40	)
Surrenders (note 6)		(42,970	)	(196,296	)	(163,836	)	(268,566	)	(332,188	)	(632,242	)	–	–
Death benefits (note 4)		(18,844	)	–		–		(4,126	)	(14,371	)	(3,994	)	–	–
Net policy repayments (loans) (note 5)		(11,747	)	(22,918	)	(2,352	)	1,996		(1,495	)	(10,964	)	–	42
Deductions for surrender charges (note 2d)		(869	)	(4,434	)	(3,086	)	(6,958	)	(6,014	)	(8,048	)	–	–
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(32,002	)	(35,482	)	(74,131	)	(75,276	)	(66,132	)	(81,400	)	–	–
Asset charges (note 3):
FPVUL & VEL contracts		(2,756	)	(2,737	)	(6,351	)	(5,753	)	(5,227	)	(5,663	)	–	–
MSP contracts		(16	)	(13	)	(556	)	(467	)	(585	)	(539	)	–	–
SL contracts		(281	)	(218	)	(1,730	)	(1,336	)	(1,820	)	(1,195	)	–	–
Adjustments to maintain reserves		(9	)	16		(16	)	3		54		(49	)	–	2
Net equity transactions		(93,488	)	(213,038	)	(153,755	)	(270,101	)	(282,197	)	(538,592	)	–	–
Net change in contract owners’ equity		323		(98,526	)	179,646		4,844		23,869		(394,254	)	–	–
Contract owners’ equity beginning of period		810,417		908,943		1,849,769		1,844,925		1,809,887		2,204,141		–	–
Contract owners’ equity end of period	$	810,740		810,417		2,029,415		1,849,769		1,833,756		1,809,887		–	–
CHANGES IN UNITS:
Beginning units		64,818		87,902		139,456		165,614		119,654		166,610		–	–
Units purchased		4,646		7,102		8,937		12,021		13,626		22,281		–	5
Units redeemed		(13,402	)	(30,186	)	(19,379	)	(38,179	)	(31,060	)	(69,237	)	–	(5	)
Ending units		56,062		64,818		129,014		139,456		102,220		119,654		–	–

(Continued)

24

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	DryIPMidCap					DryIPSmCap				DrySRGro				DryStkIx
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	1,263		(2,170	)	48,995		(25,790	)	13,295		(2,904	)	5,699,240		5,480,723
Realized gain (loss) on investments		(19,997	)	77,325		612,093		1,458,278		(55,407	)	(445,744	)	11,897,478		2,229,250
Change in unrealized gain (loss) on investments		(77,469	)	(46,328	)	1,659,449		(665,187	)	1,370,321		966,426		35,413,947		9,063,983
Reinvested capital gains		164,113		2,846		494,024		37,946		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		67,910		31,673		2,814,561		805,247		1,328,209		517,778		53,010,665		16,773,956
Equity transactions:
Purchase payments received from contract owners (note 6)		204,487		263,970		2,929,214		2,669,734		1,957,145		2,444,830		30,357,131		51,850,362
Transfers between funds		85,266		(442,534	)	806,840		(2,940,962	)	(882,076	)	(1,127,874	)	3,805,115		(4,788,950	)
Surrenders (note 6)		(1,816	)	(412,780	)	(1,228,153	)	(1,560,060	)	(906,318	)	(1,663,566	)	(67,888,901	)	(30,480,010	)
Death benefits (note 4)		(247	)	(402	)	(25,726	)	(42,562	)	(79,789	)	(80,700	)	(962,593	)	(385,986	)
Net policy repayments (loans) (note 5)		–		–		172,200		(148,542	)	(66,827	)	(260,846	)	(1,978,995	)	(1,897,464	)
Deductions for surrender charges (note 2d)		–		–		(38,750	)	(27,048	)	(78,414	)	(94,148	)	(694,033	)	(875,598	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(15,087	)	(19,546	)	(671,685	)	(596,578	)	(1,052,968	)	(1,198,256	)	(11,797,426	)	(13,073,310	)
Asset charges (note 3):
FPVUL & VEL contracts		–		–		(31,087	)	(23,013	)	(59,616	)	(61,643	)	(524,708	)	(505,553	)
MSP contracts		–		–		(252	)	(135	)	(2,467	)	(2,320	)	(18,172	)	(19,098	)
SL contracts		–		–		(11,644	)	(4,694	)	(5,025	)	(5,597	)	(234,237	)	(278,004	)
Adjustments to maintain reserves		(27	)	(22	)	(416	)	73		1,725		95		2,962		(880	)
Net equity transactions		272,576		(611,314	)	1,900,541		(2,673,787	)	(1,174,630	)	(2,050,025	)	(49,933,857	)	(454,491	)
Net change in contract owners’ equity		340,486		(579,641	)	4,715,102		(1,868,540	)	153,579		(1,532,247	)	3,076,808		16,319,465
Contract owners’ equity beginning of period		758,043		1,337,684		19,713,952		21,582,492		15,274,960		16,807,207		383,002,885		366,683,420
Contract owners’ equity end of period	$	1,098,529		758,043		24,429,054		19,713,952		15,428,539		15,274,960		386,079,693		383,002,885
CHANGES IN UNITS:
Beginning units		46,536		89,464		1,435,892		1,681,072		1,397,018		1,614,668		31,982,494		31,386,290
Units purchased		24,949		135,958		323,159		810,428		182,190		261,126		4,117,062		9,299,094
Units redeemed		(8,757	)	(178,886	)	(202,013	)	(1,055,608	)	(287,582	)	(478,776	)	(8,051,494	)	(8,702,890	)
Ending units		62,728		46,536		1,557,038		1,435,892		1,291,626		1,397,018		28,048,062		31,982,494

(Continued)

25

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	DryVIApp					DryVIDevLd				DryVIIntVal				DWSVHghRtrn
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	467,254		(31,481	)	3,628		(344	)	363,221		(72,554	)	(84	)	–
Realized gain (loss) on investments		1,580,401		619,610		19,205		16,986		2,441,440		2,757,657		16		–
Change in unrealized gain (loss) on investments		3,002,962		723,885		(67,857	)	28,507		1,821,727		(437,900	)	3,015		–
Reinvested capital gains		–		–		75,020		–		2,561,432		474,426		6,415		–
Net increase (decrease) in contract owners’ equity resulting from operations		5,050,617		1,312,014		29,996		45,149		7,187,820		2,721,629		9,362		–
Equity transactions:
Purchase payments received from contract owners (note 6)		4,078,265		4,752,850		171,060		170,934		2,541,484		4,143,686		–		–
Transfers between funds		(2,345,604	)	1,650,370		(137,147	)	(158,998	)	3,545,051		7,340,800		161,696		–
Surrenders (note 6)		(1,732,303	)	(6,431,926	)	(49,066	)	(9,112	)	(2,320,877	)	(15,432,158	)	–		–
Death benefits (note 4)		(93,179	)	(78,188	)	–		–		(15,539	)	(30,600	)	–		–
Net policy repayments (loans) (note 5)		(182,056	)	(133,510	)	(13,508	)	(5,332	)	(119	)	(4	)	–		–
Deductions for surrender charges (note 2d)		(81,826	)	(125,688	)	(7,669	)	(4,386	)	–		–		–		–
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(1,296,162	)	(1,377,854	)	(47,214	)	(55,464	)	(459,041	)	(390,206	)	(196	)	–
Asset charges (note 3):
FPVUL & VEL contracts		(72,977	)	(67,353	)	(3,269	)	(2,882	)	–		–		–		–
MSP contracts		(1,654	)	(1,517	)	(2	)	–		–		–		–		–
SL contracts		(12,673	)	(14,153	)	(453	)	(342	)	–		–		–		–
Adjustments to maintain reserves		133		(53	)	2		10		1,429		23		23		–
Net equity transactions		(1,740,036	)	(1,827,022	)	(87,266	)	(65,572	)	3,292,388		(4,368,459	)	161,523		–
Net change in contract owners’ equity		3,310,581		(515,008	)	(57,270	)	(20,423	)	10,480,208		(1,646,830	)	170,885		–
Contract owners’ equity beginning of period		31,545,441		32,060,449		887,752		908,175		30,181,919		31,828,749		–		–
Contract owners’ equity end of period	$	34,856,022		31,545,441		830,482		887,752		40,662,127		30,181,919		170,885		–
CHANGES IN UNITS:
Beginning units		2,474,314		2,677,138		58,416		63,226		1,760,980		2,072,622		–		–
Units purchased		365,532		848,585		9,815		11,297		420,700		1,288,366		15,198		–
Units redeemed		(430,488	)	(1,051,409	)	(15,569	)	(16,107	)	(242,022	)	(1,600,008	)	(18	)	–
Ending units		2,409,358		2,474,314		52,662		58,416		1,939,658		1,760,980		15,180		–

(Continued)

26

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	FedAmLead					FedCapAp				FedMrkOp			FedQualBd
Investment activity:	2006			2005		2006		2005		2006		2005	2006		2005
Net investment income (loss)	$	4,783		4,577		2,870		3,696		–		–	3,673,134		3,185,853
Realized gain (loss) on investments		3,656		15,968		4,163		9,843		4		–	(2,969,254	)	1,258,569
Change in unrealized gain (loss) on investments		3,909		(6,278	)	51,818		(6,170	)	1,096		–	1,422,971		(3,953,905	)
Reinvested capital gains		39,581		–		–		–		–		–	–		573,294
Net increase (decrease) in contract owners’ equity resulting from operations		51,929		14,267		58,851		7,369		1,100		–	2,126,851		1,063,811
Equity transactions:
Purchase payments received from contract owners (note 6)		30,290		58,906		75,660		87,266		1,073		–	7,570,046		13,737,160
Transfers between funds		(8,439	)	(35,976	)	(11,524	)	(75,044	)	39,280		–	(25,553,825	)	2,793,926
Surrenders (note 6)		(4,011	)	(1,036	)	(4,403	)	(5,448	)	–		–	(24,601,230	)	(15,016,478	)
Death benefits (note 4)		(256	)	(964	)	–		–		–		–	(620,801	)	(169,066	)
Net policy repayments (loans) (note 5)		(2,610	)	(10,902	)	(8,462	)	(1,812	)	–		–	(113,944	)	(194,668	)
Deductions for surrender charges (note 2d)		(1,591	)	(414	)	(1,112	)	(858	)	–		–	(146,590	)	(110,776	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(16,466	)	(18,050	)	(25,262	)	(28,736	)	(236	)	–	(2,059,972	)	(2,608,400	)
Asset charges (note 3):
FPVUL & VEL contracts		(1,273	)	(1,076	)	(1,215	)	(1,062	)	(31	)	–	(77,916	)	(73,832	)
MSP contracts		–		–		–		–		–		–	(3,452	)	(3,399	)
SL contracts		(214	)	(207	)	(380	)	(340	)	–		–	(54,285	)	(79,302	)
Adjustments to maintain reserves		(18	)	2		22		(9	)	21		–	380		(1,850	)
Net equity transactions		(4,588	)	(9,717	)	23,324		(26,043	)	40,107		–	(45,661,589	)	(1,726,685	)
Net change in contract owners’ equity		47,341		4,550		82,175		(18,674	)	41,207		–	(43,534,738	)	(662,874	)
Contract owners’ equity beginning of period		314,973		310,423		345,527		364,201		–		–	94,707,696		95,370,570
Contract owners’ equity end of period	$	362,314		314,973		427,702		345,527		41,207		–	51,172,958		94,707,696
CHANGES IN UNITS:
Beginning units		21,684		22,444		26,192		28,136		–		–	6,767,940		6,900,038
Units purchased		1,993		4,332		5,706		7,244		3,990		–	558,517		2,511,786
Units redeemed		(2,323	)	(5,092	)	(4,000	)	(9,188	)	(26	)	–	(3,820,603	)	(2,643,884	)
Ending units		21,354		21,684		27,898		26,192		3,964		–	3,505,854		6,767,940

(Continued)

27

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	FidVIPEIS					FidVIPGrS				FidVIPHIS				FidVIPOvS
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	3,157,897		1,369,839		191,930		315,755		1,769,398		3,622,550		319,414		180,586
Realized gain (loss) on investments		3,953,839		2,118,437		414,070		(2,666,458	)	(230,023	)	1,862,736		4,071,039		2,861,790
Change in unrealized gain (loss) on investments		(784,378	)	(1,838,486	)	5,487,027		7,486,842		928,822		(4,923,157	)	2,726,908		4,281,500
Reinvested capital gains		12,637,235		3,438,952		–		–		–		–		306,743		220,424
Net increase (decrease) in contract owners’ equity resulting from operations		18,964,593		5,088,742		6,093,027		5,136,139		2,468,197		562,129		7,424,104		7,544,300
Equity transactions:
Purchase payments received from contract owners (note 6)		11,154,923		15,756,584		10,773,886		15,865,266		1,731,392		2,969,550		3,018,320		5,876,826
Transfers between funds		(1,222,766	)	(7,412,500	)	(4,832,624	)	(13,195,054	)	(1,845,924	)	(9,516,732	)	748,578		(1,608,848	)
Surrenders (note 6)		(4,730,061	)	(11,971,226	)	(4,190,231	)	(15,708,500	)	(745,502	)	(4,072,626	)	(9,482,188	)	(5,320,332	)
Death benefits (note 4)		(297,737	)	(255,046	)	(300,161	)	(271,136	)	(156,750	)	(66,840	)	(109,513	)	(29,950	)
Net policy repayments (loans) (note 5)		(715,261	)	(744,550	)	(973,193	)	(658,242	)	(68,547	)	(134,236	)	(259,760	)	(288,352	)
Deductions for surrender charges (note 2d)		(218,615	)	(361,920	)	(318,657	)	(491,654	)	(37,870	)	(41,476	)	(92,201	)	(95,482	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(3,938,665	)	(4,347,476	)	(4,709,990	)	(5,448,834	)	(936,225	)	(1,018,984	)	(1,240,859	)	(1,535,702	)
Asset charges (note 3):
FPVUL & VEL contracts		(227,733	)	(206,659	)	(243,847	)	(237,148	)	(45,759	)	(45,982	)	(58,040	)	(61,931	)
MSP contracts		(9,452	)	(8,604	)	(8,061	)	(8,323	)	(2,117	)	(1,974	)	(1,764	)	(1,786	)
SL contracts		(39,619	)	(33,932	)	(33,457	)	(34,472	)	(7,564	)	(7,344	)	(26,278	)	(33,543	)
Adjustments to maintain reserves		517		(12	)	(357	)	(4,612	)	36		(7	)	4,520		(102	)
Net equity transactions		(244,469	)	(9,585,341	)	(4,836,692	)	(20,192,709	)	(2,114,830	)	(11,936,651	)	(7,499,185	)	(3,099,202	)
Net change in contract owners’ equity		18,720,124		(4,496,599	)	1,256,335		(15,056,570	)	353,367		(11,374,522	)	(75,081	)	4,445,098
Contract owners’ equity beginning of period		96,013,017		100,509,616		99,652,762		114,709,332		23,645,712		35,020,234		47,413,264		42,968,166
Contract owners’ equity end of period	$	114,733,141		96,013,017		100,909,097		99,652,762		23,999,079		23,645,712		47,338,183		47,413,264
CHANGES IN UNITS:
Beginning units		6,711,838		7,385,638		8,629,460		10,540,460		2,215,374		3,219,284		3,443,834		3,624,196
Units purchased		860,926		2,743,364		1,461,572		3,205,097		151,651		544,012		467,094		1,273,529
Units redeemed		(840,252	)	(3,417,164	)	(1,701,690	)	(5,116,097	)	(337,317	)	(1,547,922	)	(917,870	)	(1,453,891	)
Ending units		6,732,512		6,711,838		8,389,342		8,629,460		2,029,708		2,215,374		2,993,058		3,443,834

(Continued)

28

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	FidVIPOvSR					FidVIPConS				FidVIPIGBdS				FidVIPGrOpS
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	70,073		(711	)	1,836,307		92,541		296,348		150,542		88,641		119,420
Realized gain (loss) on investments		282,979		27,717		11,699,925		4,136,516		(19,947	)	(23,034	)	640,917		86,856
Change in unrealized gain (loss) on investments		1,463,144		959,109		(9,318,194	)	18,430,598		100,550		(108,323	)	(47,920	)	1,056,050
Reinvested capital gains		52,656		–		15,541,966		23,808		18,136		94,116		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		1,868,852		986,115		19,760,004		22,683,463		395,087		113,301		681,638		1,262,326
Equity transactions:
Purchase payments received from contract owners (note 6)		3,546,542		2,056,868		17,548,803		16,394,398		1,251,199		1,026,212		1,310,585		1,754,880
Transfers between funds		3,202,427		4,639,972		17,996,364		30,213,612		2,768,214		3,150,406		(2,918,008	)	(1,134,170	)
Surrenders (note 6)		(395,114	)	(74,592	)	(16,106,681	)	(13,859,172	)	(266,480	)	(245,338	)	(708,659	)	(1,844,984	)
Death benefits (note 4)		(55,623	)	(9,904	)	(461,959	)	(234,250	)	(48,217	)	(6,042	)	(67,362	)	(16,488	)
Net policy repayments (loans) (note 5)		(132,023	)	(133,300	)	(958,341	)	(1,233,364	)	(69,270	)	(12,548	)	(81,816	)	(147,918	)
Deductions for surrender charges (note 2d)		(29,900	)	(6,544	)	(333,435	)	(357,934	)	(24,824	)	(9,022	)	(49,983	)	(81,292	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(660,377	)	(207,510	)	(6,277,815	)	(6,103,102	)	(401,450	)	(319,270	)	(717,100	)	(844,658	)
Asset charges (note 3):
FPVUL & VEL contracts		(40,373	)	(9,862	)	(366,059	)	(299,334	)	(24,573	)	(14,938	)	(44,252	)	(46,453	)
MSP contracts		(458	)	(66	)	(10,744	)	(8,483	)	(1,910	)	(1,062	)	(1,936	)	(1,949	)
SL contracts		(6,533	)	(1,707	)	(58,385	)	(42,938	)	(7,214	)	(5,038	)	(8,107	)	(8,096	)
Adjustments to maintain reserves		35		203		9,345		(3,799	)	22		49		(354	)	20
Net equity transactions		5,428,603		6,253,558		10,981,093		24,465,634		3,175,497		3,563,409		(3,286,992	)	(2,371,108	)
Net change in contract owners’ equity		7,297,455		7,239,673		30,741,097		47,149,097		3,570,584		3,676,710		(2,605,354	)	(1,108,782	)
Contract owners’ equity beginning of period		7,239,673		–		165,940,781		118,791,684		7,429,173		3,752,463		15,704,853		16,813,635
Contract owners’ equity end of period	$	14,537,128		7,239,673		196,681,878		165,940,781		10,999,757		7,429,173		13,099,499		15,704,853
CHANGES IN UNITS:
Beginning units		579,174		–		9,413,026		7,531,262		683,006		352,046		1,475,652		1,727,558
Units purchased		513,057		620,775		2,097,457		4,559,276		361,673		369,222		129,102		206,267
Units redeemed		(106,241	)	(41,601	)	(1,390,619	)	(2,677,512	)	(74,483	)	(38,262	)	(444,614	)	(458,173	)
Ending units		985,990		579,174		10,119,864		9,413,026		970,196		683,006		1,160,140		1,475,652

(Continued)

29

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	FidVIPMCapS					FidVIPVaIS				FidVIPEnergyS2				FidVIPFree10S
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	49,604		(8,369	)	36,639		(3,084	)	45,935		11,036		11,056		715
Realized gain (loss) on investments		1,438,084		249,701		33,572		115,688		242,500		107,447		7,228		1,380
Change in unrealized gain (loss) on investments		(1,316,944	)	2,420,458		(146,173	)	(133,755	)	(797,228	)	54,320		19,784		4,610
Reinvested capital gains		2,795,083		151,660		1,229,164		181,130		1,001,993		145,810		2,850		–
Net increase (decrease) in contract owners’ equity resulting from operations		2,965,827		2,813,450		1,153,202		159,979		493,200		318,613		40,918		6,705
Equity transactions:
Purchase payments received from contract owners (note 6)		3,825,936		2,951,232		644,976		1,385,438		1,203,767		340,846		18,583		9,194
Transfers between funds		6,536,971		9,715,822		(349,532	)	947,812		3,319,981		3,045,578		473,105		151,812
Surrenders (note 6)		(3,816,678	)	(674,746	)	(184,507	)	(875,876	)	(165,467	)	(57,482	)	3		–
Death benefits (note 4)		(40,786	)	(1,216	)	–		(5,316	)	(808	)	–		–		–
Net policy repayments (loans) (note 5)		(330,065	)	10,872		(39,625	)	(59,056	)	(112,544	)	(299,276	)	(1,201	)	–
Deductions for surrender charges (note 2d)		(67,158	)	(36,688	)	(25,372	)	(27,204	)	(7,584	)	(7,448	)	(280	)	–
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(1,213,577	)	(881,710	)	(323,644	)	(338,404	)	(291,800	)	(46,042	)	(20,727	)	(2,716	)
Asset charges (note 3):
FPVUL & VEL contracts		(76,557	)	(43,826	)	(21,447	)	(17,472	)	(20,518	)	(3,121	)	(1,085	)	(296	)
MSP contracts		(2,316	)	(1,247	)	(329	)	(260	)	(312	)	(65	)	(107	)	(7	)
SL contracts		(12,247	)	(6,080	)	(972	)	(1,356	)	(3,452	)	(610	)	(43	)	(18	)
Adjustments to maintain reserves		(99	)	102		78		33		67		96		3		32
Net equity transactions		4,803,424		11,032,515		(300,374	)	1,008,339		3,921,330		2,972,476		468,251		158,001
Net change in contract owners’ equity		7,769,251		13,845,965		852,828		1,168,318		4,414,530		3,291,089		509,169		164,706
Contract owners’ equity beginning of period		21,422,831		7,576,866		7,209,802		6,041,484		3,291,089		–		164,706		–
Contract owners’ equity end of period	$	29,192,082		21,422,831		8,062,630		7,209,802		7,705,619		3,291,089		673,875		164,706
CHANGES IN UNITS:
Beginning units		1,032,350		431,128		520,574		448,246		243,526		–		15,242		–
Units purchased		453,110		681,060		46,790		261,816		287,424		274,541		44,856		15,528
Units redeemed		(235,270	)	(79,838	)	(66,376	)	(189,488	)	(42,010	)	(31,015	)	(3,294	)	(286	)
Ending units		1,250,190		1,032,350		500,988		520,574		488,940		243,526		56,804		15,242

(Continued)

30

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	FidVIPFree20S					2005 FidVIPFree30S				FrVIPIncSec2			FrVIPRisDiv
Investment activity:	2006			2005		2006		2005		2006		2005	2006		2005
Net investment income (loss)	$	19,492		3,112		8,990		1,394		329		–	169,336		106,370
Realized gain (loss) on investments		6,147		206		6,659		1,749		5,066		–	315,782		262,438
Change in unrealized gain (loss) on investments		71,282		18,735		31,837		8,629		44,817		–	1,648,834		56,160
Reinvested capital gains		12,045		–		6,386		–		44		–	68,181		66,316
Net increase (decrease) in contract owners’ equity resulting from operations		108,966		22,053		53,872		11,772		50,256		–	2,202,133		491,284
Equity transactions:
Purchase payments received from contract owners (note 6)		364,597		103,284		212,287		13,316		28,203		–	2,325,102		2,098,686
Transfers between funds		349,965		467,838		224,497		247,296		1,254,211		–	625,796		1,800,778
Surrenders (note 6)		9		–		(426	)	–		(1	)	–	(423,784	)	(315,366	)
Death benefits (note 4)		–		–		–		–		–		–	(21,819	)	(95,850	)
Net policy repayments (loans) (note 5)		(6,616	)	–		(8,603	)	1,516		(6	)	–	(81,403	)	32,678
Deductions for surrender charges (note 2d)		(568	)	–		(361	)	–		(109	)	–	(38,911	)	(22,302	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(42,888	)	(6,724	)	(42,662	)	(8,108	)	(12,723	)	–	(734,377	)	(722,572	)
Asset charges (note 3):
FPVUL & VEL contracts		(2,148	)	(319	)	(1,547	)	(238	)	(517	)	–	(50,546	)	(37,083	)
MSP contracts		(1,174	)	(29	)	(821	)	(126	)	(45	)	–	(1,633	)	(1,504	)
SL contracts		(922	)	(182	)	(54	)	–		(419	)	–	(6,758	)	(5,009	)
Adjustments to maintain reserves		29		33		22		52		75		–	51		126
Net equity transactions		660,284		563,901		382,332		253,708		1,268,669		–	1,591,718		2,732,582
Net change in contract owners’ equity		769,250		585,954		436,204		265,480		1,318,925		–	3,793,851		3,223,866
Contract owners’ equity beginning of period		585,954		–		265,480		–		–		–	11,930,685		8,706,819
Contract owners’ equity end of period	$	1,355,204		585,954		701,684		265,480		1,318,925		–	15,724,536		11,930,685
CHANGES IN UNITS:
Beginning units		52,700		–		23,432		–		–		–	840,480		635,954
Units purchased		60,994		53,370		35,898		24,209		118,860		–	201,976		293,265
Units redeemed		(4,682	)	(670	)	(4,596	)	(777	)	(1,270	)	–	(99,116	)	(88,739	)
Ending units		109,012		52,700		54,734		23,432		117,590		–	943,340		840,480

(Continued)

31

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	FrVIPSmCapV1					FrVIPSmCapV2				FrVIPDevMrk3				FrVIPForSec
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	70,843		50,625		13,727		(3,748	)	51,034		457		52,262		65,505
Realized gain (loss) on investments		431,242		312,333		240,327		40,902		211,072		7,969		260,078		331,176
Change in unrealized gain (loss) on investments		535,635		164,953		154,996		74,889		648,770		185,687		419,827		5,302
Reinvested capital gains		298,012		36,068		131,249		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		1,335,732		563,979		540,299		112,043		910,876		194,113		732,167		401,983
Equity transactions:
Purchase payments received from contract owners (note 6)		1,306,229		1,077,760		235,901		196,696		452,732		209,176		(315	)	326,330
Transfers between funds		1,453,376		2,336,672		482,348		2,137,536		2,114,894		1,691,242		(573,189	)	(482,022	)
Surrenders (note 6)		(469,855	)	(172,148	)	(20,907	)	(41,170	)	(163,461	)	(24,274	)	(206,312	)	(116,026	)
Death benefits (note 4)		(23,451	)	(4,942	)	–		–		–		–		(16,748	)	(6,452	)
Net policy repayments (loans) (note 5)		(35,601	)	(95,420	)	–		–		(82,360	)	(2,038	)	(73,172	)	(43,528	)
Deductions for surrender charges (note 2d)		(27,685	)	(27,576	)	–		–		(1,910	)	(892	)	(9,844	)	(6,634	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(445,862	)	(391,454	)	(43,957	)	(14,272	)	(164,247	)	(26,054	)	(121,456	)	(199,476	)
Asset charges (note 3):
FPVUL & VEL contracts		(30,065	)	(19,615	)	–		–		(11,541	)	(1,466	)	(11,567	)	(12,250	)
MSP contracts		(936	)	(590	)	–		–		(662	)	(37	)	(490	)	(389	)
SL contracts		(3,931	)	(1,864	)	–		–		(3,092	)	(212	)	(2,351	)	(2,432	)
Adjustments to maintain reserves		52		60		(11	)	27		152		60		15		9
Net equity transactions		1,722,271		2,700,883		653,374		2,278,817		2,140,505		1,845,505		(1,015,429	)	(542,870	)
Net change in contract owners’ equity		3,058,003		3,264,862		1,193,673		2,390,860		3,051,381		2,039,618		(283,262	)	(140,887	)
Contract owners’ equity beginning of period		7,199,539		3,934,677		2,390,860		–		2,039,618		–		3,984,911		4,125,798
Contract owners’ equity end of period	$	10,257,542		7,199,539		3,584,533		2,390,860		5,090,999		2,039,618		3,701,649		3,984,911
CHANGES IN UNITS:
Beginning units		398,540		237,384		210,812		–		159,292		–		228,680		261,568
Units purchased		132,665		201,690		108,814		213,805		179,373		163,904		2		38,499
Units redeemed		(47,143	)	(40,534	)	(48,868	)	(2,993	)	(28,443	)	(4,612	)	(54,130	)	(71,387	)
Ending units		484,062		398,540		270,758		210,812		310,222		159,292		174,552		228,680

(Continued)

32

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	FrVIPForSec2					FrVIPForSec3				FrVIPGlInc3				GVITAstAll2
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	148,526		87,022		58,304		6,397		29,118		5,901		28,982		–
Realized gain (loss) on investments		1,391,025		1,534,763		130,520		55,569		17,697		(6,244	)	(347	)	–
Change in unrealized gain (loss) on investments		1,461,209		(600,489	)	667,348		165,707		73,043		4,235		50,812		–
Reinvested capital gains		–		–		–		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		3,000,760		1,021,296		856,172		227,673		119,858		3,892		79,447		–
Equity transactions:
Purchase payments received from contract owners (note 6)		1,607,395		2,131,210		1,016,358		601,634		149,898		16,304		129,152		–
Transfers between funds		2,089,207		2,125,994		1,824,194		2,105,088		1,036,967		529,856		1,596,575		–
Surrenders (note 6)		(594,945	)	(3,701,404	)	(165,303	)	(21,206	)	(222,510	)	(11,680	)	(17,173	)	–
Death benefits (note 4)		(10,158	)	(18,098	)	(4,801	)	(78	)	–		–		–		–
Net policy repayments (loans) (note 5)		(13,754	)	(32,960	)	(180,431	)	(152,176	)	(9,774	)	(582	)	(568	)	–
Deductions for surrender charges (note 2d)		–		–		(10,743	)	(2,554	)	(5,959	)	(774	)	(308	)	–
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(318,638	)	(248,898	)	(183,405	)	(67,610	)	(46,237	)	(9,576	)	(31,978	)	–
Asset charges (note 3):
FPVUL & VEL contracts		–		–		(12,978	)	(3,636	)	(2,905	)	(565	)	(2,072	)	–
MSP contracts		–		–		(109	)	(6	)	(61	)	(3	)	(187	)	–
SL contracts		–		–		(3,195	)	(681	)	(364	)	(37	)	(247	)	–
Adjustments to maintain reserves		3,496		71		43		135		41		69		74		–
Net equity transactions		2,762,603		255,915		2,279,630		2,458,910		899,096		523,012		1,673,268		–
Net change in contract owners’ equity		5,763,363		1,277,211		3,135,802		2,686,583		1,018,954		526,904		1,752,715		–
Contract owners’ equity beginning of period		13,309,809		12,032,598		2,686,583		–		526,904		–		–		–
Contract owners’ equity end of period	$	19,073,172		13,309,809		5,822,385		2,686,583		1,545,858		526,904		1,752,715		–
CHANGES IN UNITS:
Beginning units		821,632		814,750		237,992		–		53,324		–		–		–
Units purchased		232,395		577,671		230,149		261,576		109,281		55,698		172,330		–
Units redeemed		(81,773	)	(570,789	)	(43,495	)	(23,584	)	(23,965	)	(2,374	)	(6,306	)	–
Ending units		972,254		821,632		424,646		237,992		138,640		53,324		166,024		–

(Continued)

33

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	GVITBnd2				GVITGlobGr2			GVITGrowth2			GVITIntValI
Investment activity:	2006			2005	2006		2005	2006		2005	2006		2005
Net investment income (loss)	$	2,413		–	1,684		–	10,186		–	65,708		55,001
Realized gain (loss) on investments		–		–	(210	)	–	(2,201	)	–	121,786		382,048
Change in unrealized gain (loss) on investments		8,969		–	100,276		–	69,921		–	262,686		(201,407	)
Reinvested capital gains		–		–	–		–	–		–	202,934		164,802
Net increase (decrease) in contract owners’ equity resulting from operations		11,382		–	101,750		–	77,906		–	653,114		400,444
Equity transactions:
Purchase payments received from contract owners (note 6)		24,483		–	78,774		–	76,929		–	3,238		427,864
Transfers between funds		715,789		–	1,478,713		–	1,631,125		–	(551,440	)	(1,727,918	)
Surrenders (note 6)		–		–	(70	)	–	(414	)	–	(116,109	)	(166,130	)
Death benefits (note 4)		–		–	–		–	–		–	–		(1,214	)
Net policy repayments (loans) (note 5)		82		–	(122	)	–	(9,701	)	–	(27,720	)	(64,012	)
Deductions for surrender charges (note 2d)		(212	)	–	(112	)	–	(109	)	–	(5,448	)	(14,418	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(6,887	)	–	(21,893	)	–	(26,707	)	–	(132,330	)	(249,934	)
Asset charges (note 3):
FPVUL & VEL contracts		(429	)	–	(1,462	)	–	(1,844	)	–	(10,702	)	(14,294	)
MSP contracts		(30	)	–	(128	)	–	(75	)	–	(455	)	(419	)
SL contracts		(49	)	–	(252	)	–	(502	)	–	(1,562	)	(1,722	)
Adjustments to maintain reserves		41		–	72		–	67		–	(192	)	(6,014	)
Net equity transactions		732,788		–	1,533,520		–	1,668,769		–	(842,720	)	(1,818,211	)
Net change in contract owners’ equity		744,170		–	1,635,270		–	1,746,675		–	(189,606	)	(1,417,767	)
Contract owners’ equity beginning of period		–		–	–		–	–		–	3,299,855		4,717,622
Contract owners’ equity end of period	$	744,170		–	1,635,270		–	1,746,675		–	3,110,249		3,299,855
CHANGES IN UNITS:
Beginning units		–		–	–		–	–		–	175,520		281,276
Units purchased		71,349		–	153,273		–	172,788		–	76		30,182
Units redeemed		(737	)	–	(2,447	)	–	(4,262	)	–	(40,734	)	(135,938	)
Ending units		70,612		–	150,826		–	168,526		–	134,862		175,520

(Continued)

34

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	GVITIntVal3					GVITEmMrkts				GVITEmMrkts3				GVITFHiInc
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	123,878		27,628		124,907		62,640		71,767		5,044		1,761,889		2,109,153
Realized gain (loss) on investments		222,573		12,994		2,198,970		262,189		430,240		82,878		(62,770	)	322,559
Change in unrealized gain (loss) on investments		496,243		329,682		4,849,580		2,255,101		2,317,091		257,113		711,651		(2,006,710	)
Reinvested capital gains		403,845		44,172		275,455		1,416,338		116,408		436,362		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		1,246,539		414,476		7,448,912		3,996,268		2,935,506		781,397		2,410,770		425,002
Equity transactions:
Purchase payments received from contract owners (note 6)		1,490,965		804,678		2,047,791		1,063,272		1,520,378		918,556		2,723,130		6,373,758
Transfers between funds		1,415,870		3,739,026		4,726,439		2,726,062		3,261,982		4,881,610		(1,664,758	)	(6,839,472	)
Surrenders (note 6)		(199,484	)	(30,996	)	(900,293	)	(927,718	)	(263,722	)	(74,868	)	(244,854	)	(14,345,400	)
Death benefits (note 4)		(19,679	)	(4,740	)	(146,656	)	(8,862	)	(26,594	)	–		(19,579	)	(65,406	)
Net policy repayments (loans) (note 5)		(88,948	)	(175,306	)	6,408		(200,718	)	(124,005	)	(242,554	)	(435,512	)	(785,914	)
Deductions for surrender charges (note 2d)		(10,673	)	(5,070	)	(28,669	)	(23,722	)	(15,025	)	(3,340	)	(19,998	)	(57,228	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(320,567	)	(127,042	)	(508,763	)	(517,360	)	(409,734	)	(87,142	)	(579,721	)	(1,041,276	)
Asset charges (note 3):
FPVUL & VEL contracts		(22,271	)	(6,801	)	(23,414	)	(22,865	)	(28,192	)	(4,316	)	(28,257	)	(37,212	)
MSP contracts		(303	)	(37	)	(835	)	(673	)	(598	)	(36	)	(1,365	)	(1,470	)
SL contracts		(2,726	)	(598	)	(2,994	)	(2,600	)	(4,669	)	(798	)	(22,279	)	(25,315	)
Adjustments to maintain reserves		48		87		1,285		(79	)	110		78		65		(3	)
Net equity transactions		2,242,232		4,193,201		5,170,299		2,084,737		3,909,931		5,387,190		(293,128	)	(16,824,938	)
Net change in contract owners’ equity		3,488,771		4,607,677		12,619,211		6,081,005		6,845,437		6,168,587		2,117,642		(16,399,936	)
Contract owners’ equity beginning of period		4,607,677		–		17,268,062		11,187,057		6,168,587		–		23,199,517		39,599,453
Contract owners’ equity end of period	$	8,096,448		4,607,677		29,887,273		17,268,062		13,014,024		6,168,587		25,317,159		23,199,517
CHANGES IN UNITS:
Beginning units		402,348		–		939,440		804,812		462,520		–		1,577,566		2,744,224
Units purchased		224,783		434,685		391,752		529,950		308,894		493,064		258,754		789,445
Units redeemed		(51,151	)	(32,337	)	(135,754	)	(395,322	)	(57,306	)	(30,544	)	(281,078	)	(1,956,103	)
Ending units		575,980		402,348		1,195,438		939,440		714,108		462,520		1,555,242		1,577,566

(Continued)

35

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	GVITFHiInc3					GVITGlFin				GVITGlHlth				GVITGlHlth3
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	475,086		183,162		78,715		45,006		(3,910	)	(4,508	)	–		(107	)
Realized gain (loss) on investments		(15,183	)	1,336		87,121		88,039		40,812		204,903		(93,374	)	2,277
Change in unrealized gain (loss) on investments		168,615		(93,976	)	41,527		(184,975	)	68,815		(259,358	)	104,691		(95,828	)
Reinvested capital gains		–		–		557,756		289,878		–		503,492		–		125,938
Net increase (decrease) in contract owners’ equity resulting from operations		628,518		90,522		765,119		237,948		105,717		444,529		11,317		32,280
Equity transactions:
Purchase payments received from contract owners (note 6)		2,365,950		1,495,072		252,871		281,046		244,547		481,804		514,644		366,960
Transfers between funds		1,328,322		2,962,702		1,118,235		225,740		(629,374	)	(403,358	)	615,233		1,012,502
Surrenders (note 6)		(347,150	)	(50,746	)	(355,946	)	(256,480	)	(235,027	)	(924,374	)	(73,648	)	(15,840	)
Death benefits (note 4)		(120,074	)	(14	)	(4,905	)	(2,932	)	(49,442	)	(5,272	)	(18,809	)	–
Net policy repayments (loans) (note 5)		118,992		134,332		(45,529	)	(32,252	)	(27,307	)	(59,736	)	31,729		16,666
Deductions for surrender charges (note 2d)		(15,799	)	(4,498	)	(9,913	)	(3,222	)	(11,144	)	(17,834	)	(9,427	)	(1,140	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(280,933	)	(94,782	)	(151,301	)	(115,474	)	(105,361	)	(222,078	)	(94,826	)	(31,544	)
Asset charges (note 3):
FPVUL & VEL contracts		(15,308	)	(4,684	)	(6,565	)	(5,550	)	(6,834	)	(9,417	)	(6,493	)	(1,584	)
MSP contracts		(190	)	(17	)	(16	)	(54	)	(214	)	(228	)	(12	)	–
SL contracts		(8,008	)	(2,149	)	(1,782	)	(1,022	)	(1,413	)	(1,895	)	(1,618	)	(395	)
Adjustments to maintain reserves		(6	)	303		118		(9	)	(38	)	53		22		108
Net equity transactions		3,025,796		4,435,519		795,267		89,791		(821,607	)	(1,162,335	)	956,795		1,345,733
Net change in contract owners’ equity		3,654,314		4,526,041		1,560,386		327,739		(715,890	)	(717,806	)	968,112		1,378,013
Contract owners’ equity beginning of period		4,526,041		–		3,327,285		2,999,546		4,246,789		4,964,595		1,378,013		–
Contract owners’ equity end of period	$	8,180,355		4,526,041		4,887,671		3,327,285		3,530,899		4,246,789		2,346,125		1,378,013
CHANGES IN UNITS:
Beginning units		429,384		–		202,412		203,038		319,476		404,734		128,282		–
Units purchased		366,115		462,157		81,896		165,679		25,905		147,634		108,396		134,867
Units redeemed		(93,799	)	(32,773	)	(36,934	)	(166,305	)	(86,139	)	(232,892	)	(24,020	)	(6,585	)
Ending units		701,700		429,384		247,374		202,412		259,242		319,476		212,658		128,282

(Continued)

36

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	GVITGlTech					GVITGlTech3				GVITGlUtl				GVITGvtBd
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(7,319	)	(6,698	)	–		(86	)	80,246		60,298		4,274,357		4,759,437
Realized gain (loss) on investments		68,309		(525,154	)	76,865		21,549		12		253,457		(4,154,742	)	(2,242,014	)
Change in unrealized gain (loss) on investments		460,052		56,940		104,554		27,832		680,567		(476,164	)	2,016,604		1,197,817
Reinvested capital gains		–		–		–		–		232,606		343,590		841,510		236,680
Net increase (decrease) in contract owners’ equity resulting from operations		521,042		(474,912	)	181,419		49,295		993,431		181,181		2,977,729		3,951,920
Equity transactions:
Purchase payments received from contract owners (note 6)		287,298		714,700		440,135		385,176		296,736		356,450		12,600,167		21,911,980
Transfers between funds		94,884		(4,730,636	)	356,995		723,270		1,100,262		(175,202	)	(12,812,837	)	(5,115,464	)
Surrenders (note 6)		(180,565	)	(507,860	)	(60,392	)	(42,726	)	(163,364	)	(722,856	)	(35,315,367	)	(21,786,506	)
Death benefits (note 4)		(4,826	)	(4,632	)	(584	)	–		(141	)	(760	)	(473,758	)	(133,674	)
Net policy repayments (loans) (note 5)		(60,942	)	(53,680	)	(50,683	)	15,336		(32,111	)	(43,628	)	1,302,396		(502,924	)
Deductions for surrender charges (note 2d)		(9,272	)	(13,206	)	(10,362	)	(2,848	)	(11,689	)	(3,230	)	(204,806	)	(187,848	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(157,767	)	(249,672	)	(87,361	)	(28,138	)	(99,654	)	(116,492	)	(3,202,073	)	(4,017,174	)
Asset charges (note 3):
FPVUL & VEL contracts		(7,600	)	(9,991	)	(5,542	)	(1,371	)	(7,464	)	(6,287	)	(118,452	)	(114,859	)
MSP contracts		(332	)	(361	)	(70	)	(6	)	(487	)	(462	)	(14,367	)	(15,592	)
SL contracts		(789	)	(824	)	(577	)	(151	)	(995	)	(1,553	)	(61,790	)	(87,766	)
Adjustments to maintain reserves		(448	)	(1	)	35		166		33		42		506		85
Net equity transactions		(40,359	)	(4,856,163	)	581,594		1,048,708		1,081,126		(713,978	)	(38,300,381	)	(10,049,742	)
Net change in contract owners’ equity		480,683		(5,331,075	)	763,013		1,098,003		2,074,557		(532,797	)	(35,322,652	)	(6,097,822	)
Contract owners’ equity beginning of period		5,158,177		10,489,252		1,098,003		–		2,279,588		2,812,385		133,664,356		139,762,178
Contract owners’ equity end of period	$	5,638,860		5,158,177		1,861,016		1,098,003		4,354,145		2,279,588		98,341,704		133,664,356
CHANGES IN UNITS:
Beginning units		1,635,356		3,306,446		89,142		–		153,292		201,304		9,534,524		10,130,786
Units purchased		281,687		673,755		69,527		95,265		85,389		68,084		969,433		3,838,241
Units redeemed		(303,167	)	(2,344,845	)	(22,655	)	(6,123	)	(25,833	)	(116,096	)	(3,716,401	)	(4,434,503	)
Ending units		1,613,876		1,635,356		136,014		89,142		212,848		153,292		6,787,556		9,534,524

(Continued)

37

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	GVITGrowth					GVITIntGro				GVITIntIdx6			GVITIDAgg2
Investment activity:	2006			2005		2006		2005		2006		2005	2006		2005
Net investment income (loss)	$	6,492		10,461		51,667		25,055		2,038		–	421,795		289,190
Realized gain (loss) on investments		106,037		(40,719	)	398,037		268,998		(153	)	–	642,528		615,352
Change in unrealized gain (loss) on investments		848,404		1,040,630		1,594,606		343,491		16,309		–	1,918,101		12,811
Reinvested capital gains		–		–		11,773		7,948		–		–	295,325		327,252
Net increase (decrease) in contract owners’ equity resulting from operations		960,933		1,010,372		2,056,083		645,492		18,194		–	3,277,749		1,244,605
Equity transactions:
Purchase payments received from contract owners (note 6)		2,372,877		2,709,490		395,774		267,878		25,584		–	4,170,763		3,447,214
Transfers between funds		(862,076	)	(440,902	)	4,150,649		1,185,928		183,642		–	1,559,482		2,915,728
Surrenders (note 6)		(642,622	)	(868,508	)	(276,718	)	(313,778	)	(17	)	–	(759,549	)	(787,234	)
Death benefits (note 4)		(126,564	)	(43,706	)	(847	)	(2	)	–		–	(32,296	)	(3,628	)
Net policy repayments (loans) (note 5)		(183,520	)	(177,162	)	(34,525	)	(2,814	)	(300	)	–	(141,702	)	(96,544	)
Deductions for surrender charges (note 2d)		(74,252	)	(77,088	)	(3,557	)	(5,918	)	(158	)	–	(140,694	)	(131,596	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(1,233,859	)	(1,345,570	)	(177,826	)	(90,300	)	(3,539	)	–	(1,304,561	)	(1,180,948	)
Asset charges (note 3):
FPVUL & VEL contracts		(70,082	)	(68,772	)	(12,673	)	(4,638	)	(246	)	–	(64,191	)	(43,587	)
MSP contracts		(2,065	)	(2,172	)	(372	)	(245	)	–		–	(1,766	)	(477	)
SL contracts		(7,477	)	(7,459	)	(1,302	)	(190	)	(61	)	–	(3,840	)	(4,658	)
Adjustments to maintain reserves		804		19		77		39		72		–	(82	)	146
Net equity transactions		(828,836	)	(321,830	)	4,038,680		1,035,960		204,977		–	3,281,564		4,114,416
Net change in contract owners’ equity		132,097		688,542		6,094,763		1,681,452		223,171		–	6,559,313		5,359,021
Contract owners’ equity beginning of period		16,638,165		15,949,623		3,563,893		1,882,441		–		–	18,459,692		13,100,671
Contract owners’ equity end of period	$	16,770,262		16,638,165		9,658,656		3,563,893		223,171		–	25,019,005		18,459,692
CHANGES IN UNITS:
Beginning units		2,151,666		2,195,790		354,044		243,720		–		–	1,368,528		1,046,694
Units purchased		314,518		485,451		408,362		189,792		21,043		–	521,691		573,546
Units redeemed		(424,474	)	(529,575	)	(41,694	)	(79,468	)	(709	)	–	(300,459	)	(251,712	)
Ending units		2,041,710		2,151,666		720,712		354,044		20,334		–	1,589,760		1,368,528

(Continued)

38

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	GVITIDCon2					GVITIDMod2				GVITIDModAg2				GVITIDModCon2
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	379,907		234,921		1,327,498		897,528		1,316,373		938,989		629,411		416,545
Realized gain (loss) on investments		(14,713	)	219,555		962,021		744,897		1,886,692		1,254,258		467,967		353,988
Change in unrealized gain (loss) on investments		238,962		(329,049	)	3,146,924		(103,063	)	4,291,540		122,125		474,133		(382,105	)
Reinvested capital gains		123,826		199,790		502,972		708,206		725,912		999,754		317,513		319,252
Net increase (decrease) in contract owners’ equity resulting from operations		727,982		325,217		5,939,415		2,247,568		8,220,517		3,315,126		1,889,024		707,680
Equity transactions:
Purchase payments received from contract owners (note 6)		1,151,953		2,136,868		9,853,038		9,144,332		11,456,107		11,048,024		5,966,130		2,403,516
Transfers between funds		2,758,814		6,892,036		5,612,064		8,129,376		5,087,005		9,653,958		(1,087,071	)	5,932,492
Surrenders (note 6)		(435,324	)	(7,199,914	)	(1,896,681	)	(1,604,592	)	(4,308,782	)	(3,544,782	)	(331,084	)	(961,250	)
Death benefits (note 4)		(73,137	)	(16,968	)	(134,336	)	(33,088	)	(7,042	)	(6,712	)	(475	)	(275,142	)
Net policy repayments (loans) (note 5)		(24,239	)	(24,024	)	(223,847	)	(582,182	)	(775,310	)	(262,200	)	(47,914	)	(28,104	)
Deductions for surrender charges (note 2d)		(33,334	)	(19,818	)	(266,778	)	(197,606	)	(389,030	)	(354,622	)	(36,396	)	(73,072	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(580,940	)	(585,678	)	(3,236,018	)	(3,021,900	)	(3,731,750	)	(3,441,332	)	(926,995	)	(860,714	)
Asset charges (note 3):
FPVUL & VEL contracts		(22,125	)	(15,957	)	(169,493	)	(116,128	)	(220,543	)	(144,086	)	(42,604	)	(29,899	)
MSP contracts		(6,270	)	(4,901	)	(19,056	)	(10,823	)	(10,524	)	(7,326	)	(8,059	)	(5,848	)
SL contracts		(4,480	)	(5,037	)	(22,344	)	(14,565	)	(25,375	)	(14,989	)	(6,535	)	(7,150	)
Adjustments to maintain reserves		(4	)	(1	)	(879	)	185		216		77		(347	)	178
Net equity transactions		2,730,914		1,156,606		9,495,670		11,693,009		7,074,972		12,926,010		3,478,650		6,095,007
Net change in contract owners’ equity		3,458,896		1,481,823		15,435,085		13,940,577		15,295,489		16,241,136		5,367,674		6,802,687
Contract owners’ equity beginning of period		9,636,698		8,154,875		46,610,859		32,670,282		52,372,408		36,131,272		20,710,809		13,908,122
Contract owners’ equity end of period	$	13,095,594		9,636,698		62,045,944		46,610,859		67,667,897		52,372,408		26,078,483		20,710,809
CHANGES IN UNITS:
Beginning units		823,092		719,758		3,688,566		2,721,654		3,969,980		2,932,166		1,697,008		1,186,558
Units purchased		415,079		939,743		1,222,494		1,591,266		1,222,174		1,784,437		509,644		879,817
Units redeemed		(180,433	)	(836,409	)	(496,766	)	(624,354	)	(711,508	)	(746,623	)	(229,654	)	(369,367	)
Ending units		1,057,738		823,092		4,414,294		3,688,566		4,480,646		3,969,980		1,976,998		1,697,008

(Continued)

39

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	GVITJPBal					GVITMdCpGr				GVITMdCpIdx				GVITMyMkt
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	416,379		381,003		(4,698	)	(7,156	)	781,312		623,730		5,057,915		3,194,754
Realized gain (loss) on investments		1,350,548		984,632		503,082		3,895,659		8,050,335		2,511,390		–		–
Change in unrealized gain (loss) on investments		439,493		(887,239	)	1,011,753		(3,047,260	)	(3,099,405	)	545,209		–		–
Reinvested capital gains		–		–		–		–		1,086,719		4,400,544		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		2,206,420		478,396		1,510,137		841,243		6,818,961		8,080,873		5,057,915		3,194,754
Equity transactions:
Purchase payments received from contract owners (note 6)		1,369,428		2,349,346		1,834,830		2,403,218		8,244,490		9,342,156		36,245,767		59,551,946
Transfers between funds		(1,657,342	)	(1,165,522	)	(417,382	)	(11,690,018	)	2,100,457		3,263,140		(20,282,149	)	(42,927,020	)
Surrenders (note 6)		(2,865,306	)	(1,832,352	)	(632,057	)	(3,225,070	)	(9,627,323	)	(6,689,850	)	(14,591,642	)	(15,681,862	)
Death benefits (note 4)		(62,754	)	(218,846	)	(20,321	)	(17,596	)	(172,854	)	(139,284	)	(430,692	)	(412,398	)
Net policy repayments (loans) (note 5)		(69,838	)	(125,112	)	(142,757	)	(195,112	)	(485,363	)	(429,490	)	(682,250	)	(6,812	)
Deductions for surrender charges (note 2d)		(119,984	)	(50,382	)	(56,726	)	(68,996	)	(148,453	)	(128,538	)	(850,181	)	(1,280,192	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(757,970	)	(930,210	)	(903,004	)	(977,532	)	(2,197,872	)	(2,271,002	)	(7,954,613	)	(9,684,038	)
Asset charges (note 3):
FPVUL & VEL contracts		(42,576	)	(42,879	)	(53,009	)	(48,945	)	(113,884	)	(98,800	)	(370,746	)	(384,378	)
MSP contracts		(2,310	)	(2,511	)	(1,510	)	(1,022	)	(1,996	)	(1,704	)	(31,321	)	(25,514	)
SL contracts		(11,159	)	(9,929	)	(7,634	)	(6,129	)	(37,493	)	(40,622	)	(84,568	)	(80,260	)
Adjustments to maintain reserves		317		(697	)	43		(2	)	(231	)	72		(5,168	)	149,406
Net equity transactions		(4,219,494	)	(2,029,094	)	(399,527	)	(13,827,204	)	(2,440,522	)	2,806,078		(9,037,563	)	(10,781,122	)
Net change in contract owners’ equity		(2,013,074	)	(1,550,698	)	1,110,610		(12,985,961	)	4,378,439		10,886,951		(3,979,648	)	(7,586,368	)
Contract owners’ equity beginning of period		19,418,437		20,969,135		16,311,235		29,297,196		76,859,666		65,972,715		119,443,228		127,029,596
Contract owners’ equity end of period	$	17,405,363		19,418,437		17,421,845		16,311,235		81,238,105		76,859,666		115,463,580		119,443,228
CHANGES IN UNITS:
Beginning units		1,645,674		1,828,006		1,253,052		2,993,638		3,939,766		3,680,328		9,499,298		10,347,602
Units purchased		120,149		503,846		140,282		432,791		779,224		1,562,959		2,837,447		5,033,223
Units redeemed		(450,159	)	(686,178	)	(175,494	)	(2,173,377	)	(818,706	)	(1,303,521	)	(3,553,307	)	(5,881,527	)
Ending units		1,315,664		1,645,674		1,217,840		1,253,052		3,900,284		3,939,766		8,783,438		9,499,298

(Continued)

40

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	GVITMyMkt5					GVITNWFund				GVITNWLead				GVITSmCapGr
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	10,857,311		8,508,706		4,901,772		2,693,622		7,431		10,016		(23,290	)	(26,072	)
Realized gain (loss) on investments		–		–		1,402,245		651,321		738		78,658		2,136,273		1,655,433
Change in unrealized gain (loss) on investments		–		–		56,960,310		22,877,449		83,224		(134,132	)	(1,500,638	)	(103,778	)
Reinvested capital gains		–		–		–		–		113,501		131,530		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		10,857,311		8,508,706		63,264,327		26,222,392		204,894		86,072		612,345		1,525,583
Equity transactions:
Purchase payments received from contract owners (note 6)		174,454,959		206,045,210		5,631,009		6,624,320		95,367		81,950		3,156,568		4,919,556
Transfers between funds		(26,589,546	)	(318,477,526	)	(1,739,199	)	204,038,642		422,280		280,028		500,782		(4,744,034	)
Surrenders (note 6)		(19,445,282	)	(90,778,732	)	(2,132,968	)	(3,009,076	)	(2,965	)	(283,570	)	(6,177,383	)	(3,131,300	)
Death benefits (note 4)		(68,864	)	(118,810	)	(332,227	)	(251,798	)	–		(2	)	(55,315	)	(22,744	)
Net policy repayments (loans) (note 5)		217,926		(677,190	)	(752,529	)	(648,492	)	(1,611	)	39,324		(131,546	)	(230,390	)
Deductions for surrender charges (note 2d)		–		–		(193,180	)	(263,592	)	(480	)	(4,038	)	(46,363	)	(69,526	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(4,077,600	)	(5,512,548	)	(5,735,389	)	(5,077,432	)	(32,855	)	(33,634	)	(863,076	)	(964,198	)
Asset charges (note 3):
FPVUL & VEL contracts		–		–		(193,484	)	(184,722	)	(2,578	)	(1,679	)	(51,213	)	(45,750	)
MSP contracts		–		–		(14,263	)	(13,351	)	–		–		(1,246	)	(793	)
SL contracts		–		–		(15,690	)	(15,435	)	(714	)	(49	)	(11,542	)	(14,601	)
Adjustments to maintain reserves		10,439		(1,022	)	4,424		2,184		27		4		(6,453	)	(2,405	)
Net equity transactions		124,502,032		(209,520,618	)	(5,473,496	)	201,201,248		476,471		78,334		(3,686,787	)	(4,306,185	)
Net change in contract owners’ equity		135,359,343		(201,011,912	)	57,790,831		227,423,640		681,365		164,406		(3,074,442	)	(2,780,602	)
Contract owners’ equity beginning of period		196,203,033		397,214,945		470,939,668		243,516,028		864,230		699,824		26,005,927		28,786,529
Contract owners’ equity end of period	$	331,562,376		196,203,033		528,730,499		470,939,668		1,545,595		864,230		22,931,485		26,005,927
CHANGES IN UNITS:
Beginning units		18,911,688		39,192,402		41,489,502		22,700,198		62,358		55,742		1,555,282		1,863,398
Units purchased		20,441,450		27,053,095		444,215		19,832,722		48,609		32,344		349,644		618,362
Units redeemed		(8,778,248	)	(47,333,809	)	(863,645	)	(1,043,418	)	(14,997	)	(25,728	)	(574,870	)	(926,478	)
Ending units		30,574,890		18,911,688		41,070,072		41,489,502		95,970		62,358		1,330,056		1,555,282

(Continued)

41

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	GVITSmCapVal					GVITSmComp				GVITTGroFoc				GVITUSGro
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	282,031		(51,701	)	(61,522	)	(170,116	)	–		–		14,099		(3,737	)
Realized gain (loss) on investments		12,069,014		3,010,666		13,129,717		3,737,587		–		–		(68,320	)	97,675
Change in unrealized gain (loss) on investments		(5,079,969	)	(10,694,552	)	(3,983,920	)	(4,647,318	)	–		–		(200,490	)	(551,367	)
Reinvested capital gains		6,169,351		9,974,530		2,239,910		12,618,912		–		–		130,686		967,114
Net increase (decrease) in contract owners’ equity resulting from operations		13,440,427		2,238,943		11,324,185		11,539,065		–		–		(124,025	)	509,685
Equity transactions:
Purchase payments received from contract owners (note 6)		7,852,968		11,548,638		11,006,301		13,189,146		(314	)	582		700,449		618,688
Transfers between funds		(11,917,583	)	(6,831,554	)	(18,838,133	)	6,068,378		(158	)	(3,206	)	123,032		2,635,942
Surrenders (note 6)		(11,019,125	)	(9,258,820	)	(6,025,856	)	(8,628,358	)	–		–		(590,255	)	(800,512	)
Death benefits (note 4)		(625,733	)	(134,276	)	(260,687	)	(173,698	)	–		–		(26,342	)	(4,592	)
Net policy repayments (loans) (note 5)		(465,834	)	(447,176	)	(364,919	)	(121,272	)	45		–		(46,269	)	(31,166	)
Deductions for surrender charges (note 2d)		(175,861	)	(227,778	)	(139,993	)	(151,950	)	–		–		(14,853	)	(8,178	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(2,819,571	)	(3,327,252	)	(3,096,872	)	(3,277,318	)	427		2,568		(244,363	)	(212,052	)
Asset charges (note 3):
FPVUL & VEL contracts		(167,018	)	(164,326	)	(158,429	)	(138,233	)	–		54		(13,600	)	(9,349	)
MSP contracts		(5,158	)	(5,167	)	(5,020	)	(4,247	)	–		–		(442	)	(327	)
SL contracts		(28,628	)	(31,488	)	(24,669	)	(23,268	)	–		–		(2,313	)	(1,229	)
Adjustments to maintain reserves		95		(4,800	)	(62,516	)	189		–		2		55		(12	)
Net equity transactions		(19,371,448	)	(8,883,999	)	(17,970,793	)	6,739,369		–		–		(114,901	)	2,187,213
Net change in contract owners’ equity		(5,931,021	)	(6,645,056	)	(6,646,608	)	18,278,434		–		–		(238,926	)	2,696,898
Contract owners’ equity beginning of period		86,244,409		92,889,465		107,929,871		89,651,437		–		–		6,780,459		4,083,561
Contract owners’ equity end of period	$	80,313,388		86,244,409		101,283,263		107,929,871		–		–		6,541,533		6,780,459
CHANGES IN UNITS:
Beginning units		3,867,500		4,231,442		5,767,374		4,948,194		–		–		431,480		290,806
Units purchased		361,356		1,603,362		715,029		3,368,175		49		1,416		84,716		228,574
Units redeemed		(1,193,008	)	(1,967,304	)	(1,674,711	)	(2,548,995	)	(49	)	(1,416	)	(98,258	)	(87,900	)
Ending units		3,035,848		3,867,500		4,807,692		5,767,374		–		–		417,938		431,480

(Continued)

42

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	GVITVKVal					GVITMltSec				GVITWLead				GSVMdCpV
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	215,731		156,510		702,956		704,651		44,960		49,630		447,368		154,348
Realized gain (loss) on investments		611,592		1,305,284		14,731		55,235		397,546		1,186,830		1,527,282		3,824,811
Change in unrealized gain (loss) on investments		499,983		(1,324,762	)	51,097		(490,913	)	800,472		(451,565	)	565,343		(2,832,569	)
Reinvested capital gains		577,219		280,896		38,017		105,992		–		–		6,847,239		4,779,360
Net increase (decrease) in contract owners’ equity resulting from operations		1,904,525		417,928		806,801		374,965		1,242,978		784,895		9,387,232		5,925,950
Equity transactions:
Purchase payments received from contract owners (note 6)		1,717,353		1,658,134		1,807,496		2,328,590		415,550		470,616		9,151,404		8,697,054
Transfers between funds		347,555		(1,053,884	)	(1,130,497	)	6,286,074		(215,873	)	(353,660	)	1,717,030		19,116,412
Surrenders (note 6)		(563,976	)	(971,204	)	(1,536,865	)	(2,489,696	)	(292,759	)	(658,382	)	(4,345,371	)	(16,028,218	)
Death benefits (note 4)		(130,765	)	(20,678	)	(285,442	)	(86,920	)	(5,633	)	(5,270	)	(44,468	)	(36,842	)
Net policy repayments (loans) (note 5)		(128,466	)	(51,712	)	(5,560	)	(127,030	)	(34,245	)	(23,198	)	(253	)	(1,252	)
Deductions for surrender charges (note 2d)		(34,111	)	(34,204	)	(25,056	)	(51,082	)	(8,990	)	(29,412	)	–		–
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(611,392	)	(575,530	)	(605,722	)	(737,666	)	(258,860	)	(266,276	)	(860,787	)	(824,296	)
Asset charges (note 3):
FPVUL & VEL contracts		(43,708	)	(29,150	)	(32,124	)	(28,630	)	(17,581	)	(14,568	)	–		–
MSP contracts		(1,297	)	(1,230	)	(3,307	)	(3,643	)	(379	)	(313	)	–		–
SL contracts		(5,807	)	(3,818	)	(5,862	)	(4,972	)	(1,912	)	(1,523	)	–		–
Adjustments to maintain reserves		99		(65	)	(8	)	61		26		(15	)	1,371		150
Net equity transactions		545,485		(1,083,341	)	(1,822,947	)	5,085,086		(420,656	)	(882,001	)	5,618,926		10,923,008
Net change in contract owners’ equity		2,450,010		(665,413	)	(1,016,146	)	5,460,051		822,322		(97,106	)	15,006,158		16,848,958
Contract owners’ equity beginning of period		11,170,215		11,835,628		19,551,800		14,091,749		4,920,120		5,017,226		54,741,504		37,892,546
Contract owners’ equity end of period	$	13,620,225		11,170,215		18,535,654		19,551,800		5,742,442		4,920,120		69,747,662		54,741,504
CHANGES IN UNITS:
Beginning units		873,378		1,010,062		1,351,476		980,208		354,722		440,648		3,064,044		2,386,580
Units purchased		175,325		292,506		158,491		824,057		25,803		189,720		659,984		2,517,363
Units redeemed		(131,115	)	(429,190	)	(291,507	)	(452,789	)	(52,953	)	(275,646	)	(354,142	)	(1,839,899	)
Ending units		917,588		873,378		1,218,460		1,351,476		327,572		354,722		3,369,886		3,064,044

(Continued)

43

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	JanBal					JanForty				JanGlTech				JanRMgCore
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	140,956		152,654		19,557		(34,927	)	(4,761	)	(3,541	)	677		5,763
Realized gain (loss) on investments		718,982		459,986		4,052,326		3,013,007		727,508		(476,937	)	(6,169	)	6,996
Change in unrealized gain (loss) on investments		(247,691	)	26,626		(196,228	)	1,708,676		489,592		1,867,653		21,541		(49,154	)
Reinvested capital gains		–		–		–		–		–		–		42,380		83,508
Net increase (decrease) in contract owners’ equity resulting from operations		612,247		639,266		3,875,655		4,686,756		1,212,339		1,387,175		58,429		47,113
Equity transactions:
Purchase payments received from contract owners (note 6)		814,693		1,225,974		4,436,262		5,269,780		1,726,100		2,281,730		45,743		49,474
Transfers between funds		(2,998,740	)	(771,402	)	1,640,984		(2,287,536	)	1,204,456		(1,413,638	)	(41,864	)	147,744
Surrenders (note 6)		(139,904	)	(807,376	)	(5,569,498	)	(4,583,720	)	(746,802	)	(1,334,454	)	(4,910	)	(44,184	)
Death benefits (note 4)		(9,517	)	(6,256	)	(155,868	)	(17,062	)	(15,700	)	(4,292	)	–		–
Net policy repayments (loans) (note 5)		(60,524	)	(27,354	)	(327,900	)	(330,624	)	(148,833	)	(99,806	)	(5,751	)	(3,394	)
Deductions for surrender charges (note 2d)		(3,986	)	(3,852	)	(150,791	)	(169,738	)	(68,718	)	(71,836	)	(640	)	(3,450	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(157,298	)	(184,630	)	(1,723,893	)	(1,994,710	)	(692,384	)	(795,868	)	(22,573	)	(21,760	)
Asset charges (note 3):
FPVUL & VEL contracts		(4,752	)	(3,367	)	(99,861	)	(100,236	)	(43,998	)	(42,571	)	(1,774	)	(1,339	)
MSP contracts		–		–		(2,411	)	(2,390	)	(834	)	(783	)	(362	)	(275	)
SL contracts		(915	)	(549	)	(13,846	)	(13,231	)	(8,830	)	(8,667	)	(127	)	(93	)
Adjustments to maintain reserves		12,505		44		165		(1,624	)	234		1,037		(37	)	58
Net equity transactions		(2,548,438	)	(578,768	)	(1,966,657	)	(4,231,091	)	1,204,691		(1,489,148	)	(32,295	)	122,781
Net change in contract owners’ equity		(1,936,191	)	60,498		1,908,998		455,665		2,417,030		(101,973	)	26,134		169,894
Contract owners’ equity beginning of period		8,310,980		8,250,482		42,905,579		42,449,914		14,125,473		14,227,446		510,093		340,199
Contract owners’ equity end of period	$	6,374,789		8,310,980		44,814,577		42,905,579		16,542,503		14,125,473		536,227		510,093
CHANGES IN UNITS:
Beginning units		628,864		670,846		4,991,020		5,560,894		3,531,632		3,971,414		31,826		23,542
Units purchased		115,952		241,647		1,115,457		1,685,267		972,673		871,305		2,850		13,493
Units redeemed		(307,090	)	(283,629	)	(1,321,079	)	(2,255,141	)	(659,063	)	(1,311,087	)	(4,472	)	(5,209	)
Ending units		437,726		628,864		4,785,398		4,991,020		3,845,242		3,531,632		30,204		31,826

(Continued)

44

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	JanIntGroS2				JanIntGroS				JPMMidCapGr				JPMMidCapV
Investment activity:	2006			2005	2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	75,317		–	987,830		371,496		(10,359	)	(8,296	)	6,164		3,396
Realized gain (loss) on investments		168		–	8,545,861		5,363,604		231,144		343,944		4,335		89,704
Change in unrealized gain (loss) on investments		1,243,011		–	10,808,316		5,238,898		(10,397	)	(31,068	)	(30,208	)	(70,259	)
Reinvested capital gains		–		–	–		–		109,584		–		98,910		66,486
Net increase (decrease) in contract owners’ equity resulting from operations		1,318,496		–	20,342,007		10,973,998		319,972		304,580		79,201		89,327
Equity transactions:
Purchase payments received from contract owners (note 6)		1,819,270		–	3,361,029		4,705,514		503,494		494,648		30,062		120,354
Transfers between funds		5,793,495		–	444,747		(5,758,140	)	(90,427	)	782,682		(587,553	)	(297,044	)
Surrenders (note 6)		(77,073	)	–	(3,818,358	)	(5,494,906	)	(84,882	)	(870,990	)	(82,845	)	(201,206	)
Death benefits (note 4)		(464	)	–	(264,675	)	(17,372	)	(151	)	(2,886	)	(805	)	(528	)
Net policy repayments (loans) (note 5)		71,621		–	(454,585	)	(217,512	)	–		–		–		–
Deductions for surrender charges (note 2d)		(3,100	)	–	(131,288	)	(188,528	)	–		–		–		–
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(134,013	)	–	(1,849,857	)	(1,685,664	)	(76,330	)	(66,548	)	(8,083	)	(14,646	)
Asset charges (note 3):
FPVUL & VEL contracts		(8,505	)	–	(119,340	)	(87,703	)	–		–		–		–
MSP contracts		(78	)	–	(2,820	)	(1,797	)	–		–		–		–
SL contracts		(1,428	)	–	(17,542	)	(12,028	)	–		–		–		–
Adjustments to maintain reserves		41		–	735		(6	)	8		10		8		35
Net equity transactions		7,459,766		–	(2,851,954	)	(8,758,142	)	251,712		336,916		(649,216	)	(393,035	)
Net change in contract owners’ equity		8,778,262		–	17,490,053		2,215,856		571,684		641,496		(570,015	)	(303,708	)
Contract owners’ equity beginning of period		–		–	43,357,179		41,141,323		3,403,405		2,761,909		877,908		1,181,616
Contract owners’ equity end of period	$	8,778,262		–	60,847,232		43,357,179		3,975,089		3,403,405		307,893		877,908
CHANGES IN UNITS:
Beginning units		–		–	4,397,578		5,514,336		214,242		192,734		53,000		78,176
Units purchased		777,292		–	487,995		1,598,196		63,298		261,089		1,741		48,870
Units redeemed		(22,442	)	–	(671,007	)	(2,714,954	)	(52,416	)	(239,581	)	(38,811	)	(74,046	)
Ending units		754,850		–	4,214,566		4,397,578		225,124		214,242		15,930		53,000

(Continued)

45

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	LAMidCapV					MFSInvGrStl				MFSValueI				GVITNStrVal
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	2,252		724		–		9,985		24,098		9,978		–		–
Realized gain (loss) on investments		3,568		731		59,908		48,694		104,789		39,281		–		–
Change in unrealized gain (loss) on investments		1,310		(4,233	)	247,242		121,870		286,163		21,116		–		–
Reinvested capital gains		49,476		13,692		–		–		68,117		32,118		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		56,606		10,914		307,150		180,549		483,167		102,493		–		–
Equity transactions:
Purchase payments received from contract owners (note 6)		2,994		(2	)	865,208		722,216		410,693		363,110		3		–
Transfers between funds		387,073		225,126		(58,134	)	649,508		1,224,719		460,144		(30	)	–
Surrenders (note 6)		(7,874	)	–		(118,612	)	(65,716	)	(62,697	)	(25,282	)	–		–
Death benefits (note 4)		–		–		(17,006	)	(43,208	)	–		(828	)	–		–
Net policy repayments (loans) (note 5)		–		–		(39,305	)	(10,682	)	(12,805	)	(13,326	)	–		–
Deductions for surrender charges (note 2d)		–		–		(14,157	)	(7,572	)	(11,532	)	(1,996	)	–		–
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(4,758	)	(1,542	)	(280,830	)	(269,260	)	(139,305	)	(111,492	)	3		–
Asset charges (note 3):
FPVUL & VEL contracts		–		–		(17,699	)	(13,029	)	(9,363	)	(5,202	)	(1	)	–
MSP contracts		–		–		(237	)	(173	)	(380	)	(201	)	–		–
SL contracts		–		–		(824	)	(623	)	(1,208	)	(727	)	–		–
Adjustments to maintain reserves		(838	)	45		5		11		50		32		25		–
Net equity transactions		376,597		223,627		318,409		961,472		1,398,172		664,232		–		–
Net change in contract owners’ equity		433,203		234,541		625,559		1,142,021		1,881,339		766,725		–		–
Contract owners’ equity beginning of period		234,541		–		3,855,599		2,713,578		1,795,478		1,028,753		–		–
Contract owners’ equity end of period	$	667,744		234,541		4,481,158		3,855,599		3,676,817		1,795,478		–		–
CHANGES IN UNITS:
Beginning units		20,812		–		291,396		214,290		118,172		72,218		–		–
Units purchased		33,292		22,477		62,263		112,910		96,110		56,230		3		–
Units redeemed		(1,164	)	(1,665	)	(38,835	)	(35,804	)	(14,022	)	(10,276	)	(3	)	–
Ending units		52,940		20,812		314,824		291,396		200,260		118,172		–		–

(Continued)

46

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	NBAMTFasc					NBAMTGuard				NBAMTInt				NBAMTLMat
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(1,815	)	(3,239	)	95,651		8,896		3,750		664		272,797		214,521
Realized gain (loss) on investments		78,642		135,918		2,245,862		1,071,673		64,388		2,547		(17,147	)	(63,991	)
Change in unrealized gain (loss) on investments		(36,527	)	(93,155	)	(418,853	)	29,510		183,156		32,993		113,979		(61,052	)
Reinvested capital gains		45,103		7,692		–		–		13,829		3,050		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		85,403		47,216		1,922,660		1,110,079		265,123		39,254		369,629		89,478
Equity transactions:
Purchase payments received from contract owners (note 6)		181,213		471,948		887,138		1,738,684		216,888		21,870		785,674		1,286,146
Transfers between funds		(282,594	)	(958,828	)	(964,203	)	(1,115,540	)	1,146,282		591,616		1,348,992		3,474,880
Surrenders (note 6)		(47,239	)	(309,050	)	(1,705,503	)	(1,002,208	)	(108,990	)	(1,650	)	(138,889	)	(187,828	)
Death benefits (note 4)		(1,821	)	(1,130	)	(29,599	)	(52,436	)	–		–		–		(68,168	)
Net policy repayments (loans) (note 5)		(22,508	)	(14,204	)	(189,086	)	(88,276	)	(46,365	)	(4,560	)	(5,571	)	(6,508	)
Deductions for surrender charges (note 2d)		(974	)	(1,752	)	(22,589	)	(30,876	)	(2,291	)	(476	)	(14,623	)	(8,856	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(42,693	)	(64,846	)	(530,149	)	(581,516	)	(56,459	)	(11,664	)	(334,442	)	(246,608	)
Asset charges (note 3):
FPVUL & VEL contracts		(2,505	)	(1,788	)	(32,924	)	(32,955	)	(4,456	)	(534	)	(24,807	)	(12,987	)
MSP contracts		(85	)	–		(939	)	(962	)	(233	)	(1	)	(753	)	(472	)
SL contracts		(498	)	(329	)	(4,041	)	(4,015	)	(498	)	(1	)	(2,448	)	(2,044	)
Adjustments to maintain reserves		74		(28	)	36		100		748		73		(10	)	200
Net equity transactions		(219,630	)	(880,007	)	(2,591,859	)	(1,170,000	)	1,144,626		594,673		1,613,123		4,227,755
Net change in contract owners’ equity		(134,227	)	(832,791	)	(669,199	)	(59,921	)	1,409,749		633,927		1,982,752		4,317,233
Contract owners’ equity beginning of period		1,682,268		2,515,059		14,609,107		14,669,028		633,927		–		7,733,779		3,416,546
Contract owners’ equity end of period	$	1,548,041		1,682,268		13,939,908		14,609,107		2,043,676		633,927		9,716,531		7,733,779
CHANGES IN UNITS:
Beginning units		116,494		179,164		934,782		1,000,824		53,950		–		748,972		335,648
Units purchased		27,221		57,082		154,898		389,304		99,337		55,621		204,964		467,743
Units redeemed		(41,803	)	(119,752	)	(328,992	)	(455,346	)	(12,403	)	(1,671	)	(50,888	)	(54,419	)
Ending units		101,912		116,494		760,688		934,782		140,884		53,950		903,048		748,972

(Continued)

47

NATIONWIDE VLI SEPARATE ACCOUNT- 4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	NBAMTMCGr					NBAMTPart				NBAMTRegI			NBAMTRegS
Investment activity:	2006			2005		2006		2005		2006		2005	2006		2005
Net investment income (loss)	$	(22,024	)	(24,851	)	136,790		181,744		730		–	3,419		(162	)
Realized gain (loss) on investments		1,903,659		3,965,024		2,935,967		3,223,639		(14,805	)	–	7,578		2,701
Change in unrealized gain (loss) on investments		3,585,864		549,775		(2,822,988	)	(223,832	)	12,278		–	8,407		7,430
Reinvested capital gains		–		–		2,237,618		4,592		22,223		–	47,400		–
Net increase (decrease) in contract owners’ equity resulting from operations		5,467,499		4,489,948		2,487,387		3,186,143		20,426		–	66,804		9,969
Equity transactions:
Purchase payments received from contract owners (note 6)		4,023,169		5,156,916		1,561,021		2,016,266		12,694		–	77,630		7,400
Transfers between funds		(1,734,701	)	(5,894,314	)	815,963		1,247,214		399,771		–	477,234		274,800
Surrenders (note 6)		(1,585,818	)	(6,484,224	)	(5,958,775	)	(3,881,124	)	(1,466	)	–	(51,066	)	(19,240	)
Death benefits (note 4)		(88,663	)	(104,540	)	(34,546	)	(8,784	)	–		–	–		–
Net policy repayments (loans) (note 5)		(157,366	)	(277,610	)	(680,813	)	(279,760	)	–		–	(4,356	)	–
Deductions for surrender charges (note 2d)		(122,940	)	(147,180	)	(63,405	)	(88,342	)	–		–	(726	)	(1,328	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(1,799,054	)	(1,924,068	)	(815,350	)	(840,918	)	(9,310	)	–	(25,199	)	(2,124	)
Asset charges (note 3):
FPVUL & VEL contracts		(102,689	)	(92,477	)	(54,760	)	(47,738	)	–		–	(2,680	)	(142	)
MSP contracts		(2,090	)	(1,966	)	(1,489	)	(1,654	)	–		–	(57	)	(7	)
SL contracts		(15,066	)	(13,348	)	(12,080	)	(10,122	)	–		–	(234	)	(3	)
Adjustments to maintain reserves		107		(4,370	)	2,087		830		(938	)	–	25		67
Net equity transactions		(1,585,111	)	(9,787,181	)	(5,242,147	)	(1,894,132	)	400,751		–	470,571		259,423
Net change in contract owners’ equity		3,882,388		(5,297,233	)	(2,754,760	)	1,292,011		421,177		–	537,375		269,392
Contract owners’ equity beginning of period		38,136,423		43,433,656		23,462,474		22,170,463		–		–	269,392		–
Contract owners’ equity end of period	$	42,018,811		38,136,423		20,707,714		23,462,474		421,177		–	806,767		269,392
CHANGES IN UNITS:
Beginning units		2,443,662		3,470,750		1,534,846		1,731,354		–		–	23,100		–
Units purchased		261,641		679,255		193,885		513,241		42,315		–	42,368		25,079
Units redeemed		(334,425	)	(1,706,343	)	(542,365	)	(709,749	)	(1,221	)	–	(3,108	)	(1,979	)
Ending units		2,370,878		2,443,662		1,186,366		1,534,846		41,094		–	62,360		23,100

(Continued)

48

NATIONWIDE VLI SEPARATE ACCOUNT- 4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	NBAMTSocRes					OppGlSec3				OppCapAp				OppGlSec
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	3,512		(271	)	109,643		(1,266	)	290,028		958,062		653,896		510,971
Realized gain (loss) on investments		84,079		34,585		216,685		65,081		6,558,021		578,276		8,813,547		5,322,204
Change in unrealized gain (loss) on investments		177,186		59,578		1,264,016		764,233		2,466,146		4,398,023		(1,859,919	)	2,527,482
Reinvested capital gains		24,933		3,326		573,997		–		–		–		4,090,534		–
Net increase (decrease) in contract owners’ equity resulting from operations		289,710		97,218		2,164,341		828,048		9,314,195		5,934,361		11,698,058		8,360,657
Equity transactions:
Purchase payments received from contract owners (note 6)		469,710		313,774		3,887,872		2,779,566		13,571,860		21,711,790		2,915,675		7,081,714
Transfers between funds		707,196		727,176		3,708,909		5,535,992		(20,777,203	)	(16,457,702	)	1,041,332		907,058
Surrenders (note 6)		(152,125	)	(85,330	)	(657,688	)	(244,838	)	(4,677,523	)	(19,271,526	)	(8,605,245	)	(7,039,230	)
Death benefits (note 4)		–		–		(28,039	)	(25,442	)	(120,277	)	(158,872	)	(122,420	)	(44,770	)
Net policy repayments (loans) (note 5)		(9,253	)	242		(78,170	)	99,806		(321,628	)	(624,116	)	(218,423	)	(394,164	)
Deductions for surrender charges (note 2d)		(11,943	)	(1,526	)	(41,812	)	(20,618	)	(216,478	)	(319,496	)	(86,123	)	(101,854	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(118,796	)	(77,622	)	(672,243	)	(218,144	)	(4,147,291	)	(4,695,310	)	(1,744,211	)	(2,108,658	)
Asset charges (note 3):
FPVUL & VEL contracts		(7,089	)	(3,337	)	(42,792	)	(10,565	)	(199,499	)	(190,375	)	(81,862	)	(87,539	)
MSP contracts		(307	)	(91	)	(923	)	(257	)	(6,029	)	(5,610	)	(2,061	)	(1,846	)
SL contracts		(2,022	)	(893	)	(9,127	)	(3,052	)	(26,270	)	(24,477	)	(14,148	)	(14,320	)
Adjustments to maintain reserves		62		2		30		286		4,713		1		1,897		(735	)
Net equity transactions		875,433		872,395		6,066,017		7,892,734		(16,915,625	)	(20,035,693	)	(6,915,589	)	(1,804,344	)
Net change in contract owners’ equity		1,165,143		969,613		8,230,358		8,720,782		(7,601,430	)	(14,101,332	)	4,782,469		6,556,313
Contract owners’ equity beginning of period		1,562,211		592,598		8,720,782		–		130,707,277		144,808,609		66,921,188		60,364,875
Contract owners’ equity end of period	$	2,727,354		1,562,211		16,951,140		8,720,782		123,105,847		130,707,277		71,703,657		66,921,188
CHANGES IN UNITS:
Beginning units		104,292		42,274		723,136		–		10,683,274		11,425,008		5,273,314		5,430,766
Units purchased		71,098		69,573		594,916		766,045		1,281,089		7,056,358		991,724		2,878,688
Units redeemed		(15,256	)	(7,555	)	(123,704	)	(42,909	)	(2,717,063	)	(7,798,092	)	(1,448,994	)	(3,036,140	)
Ending units		160,134		104,292		1,194,348		723,136		9,247,300		10,683,274		4,816,044		5,273,314

(Continued)

49

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	OppHighInc					OppMSt				OppMStSCap				OppMidCap
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	258,840		188,043		438,967		529,350		4,810		(1,163	)	(45,719	)	(58,472	)
Realized gain (loss) on investments		(18,628	)	(50,931	)	1,963,250		1,705,806		156,168		71,417		3,970,282		8,348,656
Change in unrealized gain (loss) on investments		119,146		(47,298	)	3,463,093		9,374		210,349		117,558		(2,446,101	)	(2,182,218	)
Reinvested capital gains		–		–		–		–		94,934		53,070		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		359,358		89,814		5,865,310		2,244,530		466,261		240,882		1,478,462		6,107,966
Equity transactions:
Purchase payments received from contract owners (note 6)		532,106		538,178		4,120,791		5,707,864		680,348		394,638		4,625,076		8,090,218
Transfers between funds		227,330		431,688		(244,548	)	(2,801,076	)	1,271,772		495,442		(7,824,283	)	(10,107,086	)
Surrenders (note 6)		(106,681	)	(136,760	)	(2,633,893	)	(3,983,586	)	(284,848	)	(71,788	)	(3,278,861	)	(9,951,726	)
Death benefits (note 4)		(802	)	(2,084	)	(306,762	)	(211,410	)	(35,812	)	(2,630	)	(114,492	)	(106,858	)
Net policy repayments (loans) (note 5)		(47,547	)	(30,886	)	(432,302	)	(402,058	)	(2,810	)	(59,140	)	(129,426	)	(661,682	)
Deductions for surrender charges (note 2d)		(12,825	)	(12,660	)	(127,429	)	(185,490	)	(23,293	)	(8,466	)	(162,360	)	(243,372	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(308,843	)	(249,062	)	(2,107,721	)	(2,344,784	)	(205,569	)	(169,816	)	(2,339,153	)	(2,747,066	)
Asset charges (note 3):
FPVUL & VEL contracts		(14,128	)	(9,638	)	(132,654	)	(123,336	)	(14,409	)	(8,403	)	(128,675	)	(129,137	)
MSP contracts		(302	)	(102	)	(5,596	)	(5,206	)	(207	)	(96	)	(2,733	)	(2,946	)
SL contracts		(1,596	)	(1,089	)	(16,675	)	(17,120	)	(1,701	)	(672	)	(13,529	)	(13,009	)
Adjustments to maintain reserves		14		48		40		(22,898	)	145		(6	)	(255	)	(3,681	)
Net equity transactions		266,726		527,633		(1,886,749	)	(4,389,100	)	1,383,616		569,063		(9,368,691	)	(15,876,345	)
Net change in contract owners’ equity		626,084		617,447		3,978,561		(2,144,570	)	1,849,877		809,945		(7,890,229	)	(9,768,379	)
Contract owners’ equity beginning of period		3,795,949		3,178,502		40,298,200		42,442,770		2,664,457		1,854,512		55,571,063		65,339,442
Contract owners’ equity end of period	$	4,422,033		3,795,949		44,276,761		40,298,200		4,514,334		2,664,457		47,680,834		55,571,063
CHANGES IN UNITS:
Beginning units		304,496		260,866		3,313,744		3,750,564		146,346		111,964		4,702,756		5,915,758
Units purchased		57,743		74,854		419,706		1,087,846		99,399		56,039		376,202		2,290,601
Units redeemed		(38,067	)	(31,224	)	(567,140	)	(1,524,666	)	(30,131	)	(21,657	)	(1,305,274	)	(3,503,603	)
Ending units		324,172		304,496		3,166,310		3,313,744		215,614		146,346		3,773,684		4,702,756

(Continued)

50

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	PVITAllAst					PVITLowDur				PVITRealRet				PVITTotRet
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	128,582		149,414		1,576,571		990,266		1,586,946		682,032		4,249,566		2,469,162
Realized gain (loss) on investments		62,978		4,077		(319,633	)	(186,935	)	(330,063	)	150,024		(749,358	)	(2,913	)
Change in unrealized gain (loss) on investments		(54,520	)	50,480		210,497		(595,391	)	(2,320,724	)	(739,307	)	(291,320	)	(2,205,252	)
Reinvested capital gains		3,877		12,230		–		104,450		1,140,949		345,124		654,903		1,411,494
Net increase (decrease) in contract owners’ equity resulting from operations		140,917		216,201		1,467,435		312,390		77,108		437,873		3,863,791		1,672,491
Equity transactions:
Purchase payments received from contract owners (note 6)		417,108		240,212		3,274,924		4,651,648		3,855,829		5,417,370		11,445,348		12,384,494
Transfers between funds		(2,728,357	)	3,418,706		(130,978	)	15,350,362		10,103,605		10,901,204		33,883,799		13,111,258
Surrenders (note 6)		(371,662	)	–		(2,584,179	)	(28,029,434	)	(2,190,978	)	(3,182,524	)	(13,016,934	)	(4,948,132	)
Death benefits (note 4)		–		–		(12,566	)	(43,444	)	(10,531	)	(41,306	)	(33,557	)	(82,760	)
Net policy repayments (loans) (note 5)		–		–		840		(20	)	107		10		(26,634	)	(59,414	)
Deductions for surrender charges (note 2d)		–		–		–		–		–		–		–		–
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(34,790	)	(37,340	)	(879,519	)	(827,922	)	(535,709	)	(521,088	)	(1,589,933	)	(1,316,828	)
Asset charges (note 3):
FPVUL & VEL contracts		–		–		–		–		–		–		–		–
MSP contracts		–		–		–		–		–		–		–		–
SL contracts		–		–		–		–		–		–		–		–
Adjustments to maintain reserves		110		5		(1,166	)	(2,218	)	11,835		(6,521	)	30,288		(21,486	)
Net equity transactions		(2,717,591	)	3,621,583		(332,644	)	(8,901,028	)	11,234,158		12,567,145		30,692,377		19,067,132
Net change in contract owners’ equity		(2,576,674	)	3,837,784		1,134,791		(8,588,638	)	11,311,266		13,005,018		34,556,168		20,739,623
Contract owners’ equity beginning of period		4,113,521		275,737		39,357,299		47,945,937		31,784,917		18,779,899		89,665,599		68,925,976
Contract owners’ equity end of period	$	1,536,847		4,113,521		40,492,090		39,357,299		43,096,183		31,784,917		124,221,767		89,665,599
CHANGES IN UNITS:
Beginning units		346,486		24,614		3,699,808		4,539,622		2,555,674		1,538,994		7,755,960		6,094,914
Units purchased		45,134		365,450		434,776		3,460,367		1,220,721		2,077,818		3,928,794		4,650,228
Units redeemed		(267,666	)	(43,578	)	(463,988	)	(4,300,181	)	(322,943	)	(1,061,138	)	(1,309,720	)	(2,989,182	)
Ending units		123,954		346,486		3,670,596		3,699,808		3,453,452		2,555,674		10,375,034		7,755,960

(Continued)

51

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	PioHiYield					PVTGroIncIB				PVTIntEqIB				PVTVoyIB
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	645,917		499,686		18,028		15,494		12,530		23,274		389		1,751
Realized gain (loss) on investments		(140,344	)	(66,334	)	35,631		21,915		375,808		106,954		6,926		7,602
Change in unrealized gain (loss) on investments		323,000		(555,063	)	102,959		20,998		520,130		97,263		12,151		10,546
Reinvested capital gains		171,999		327,788		28,081		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		1,000,572		206,077		184,699		58,407		908,468		227,491		19,466		19,899
Equity transactions:
Purchase payments received from contract owners (note 6)		1,272,832		1,262,376		192,407		229,886		220,234		190,056		108,648		105,898
Transfers between funds		711,631		2,312,216		(44,426	)	68,440		2,167,875		453,196		(28,660	)	9,278
Surrenders (note 6)		(263,529	)	(1,118,194	)	(30,875	)	(61,800	)	(409,962	)	(75,660	)	(6,539	)	(32,990	)
Death benefits (note 4)		(2,578	)	(16,674	)	–		–		(863	)	–		(9,679	)	(29,824	)
Net policy repayments (loans) (note 5)		175		10		(21,032	)	(7,834	)	(212,480	)	(2,638	)	(1,653	)	(1,908	)
Deductions for surrender charges (note 2d)		–		–		(8,618	)	(6,558	)	(10,394	)	(5,496	)	(2,997	)	(2,940	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(161,357	)	(155,358	)	(83,572	)	(90,674	)	(105,882	)	(72,620	)	(36,622	)	(41,046	)
Asset charges (note 3):
FPVUL & VEL contracts		–		–		(4,578	)	(3,647	)	(7,388	)	(3,903	)	(1,773	)	(1,390	)
MSP contracts		–		–		(36	)	(34	)	(220	)	(177	)	(7	)	(6	)
SL contracts		–		–		(307	)	(185	)	(2,321	)	(2,388	)	(154	)	(113	)
Adjustments to maintain reserves		137		(73	)	20		26		38		25		(18	)	24
Net equity transactions		1,557,311		2,284,303		(1,017	)	127,620		1,638,637		480,395		20,546		4,983
Net change in contract owners’ equity		2,557,883		2,490,380		183,682		186,027		2,547,105		707,886		40,012		24,882
Contract owners’ equity beginning of period		11,117,277		8,626,897		1,150,032		964,005		2,307,196		1,599,310		359,350		334,468
Contract owners’ equity end of period	$	13,675,160		11,117,277		1,333,714		1,150,032		4,854,301		2,307,196		399,362		359,350
CHANGES IN UNITS:
Beginning units		739,418		584,660		79,162		69,826		138,276		107,542		27,308		26,864
Units purchased		133,955		689,878		11,200		22,192		154,928		42,649		8,335		9,766
Units redeemed		(32,807	)	(535,120	)	(11,158	)	(12,856	)	(65,414	)	(11,915	)	(6,859	)	(9,322	)
Ending units		840,566		739,418		79,204		79,162		227,790		138,276		28,784		27,308

(Continued)

52

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	RCFMicroCap					TRoeBlChip2				TRowEqInc2				TRowLtdTBd2
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(55,521	)	96,192		2,764		318		864,340		665,219		13,800		2,024
Realized gain (loss) on investments		4,280,337		667,307		20,130		3,925		3,458,350		2,694,532		(1,565	)	(13	)
Change in unrealized gain (loss) on investments		1,284,180		2,639,776		75,614		9,234		7,085,486		(4,229,484	)	5,730		(1,192	)
Reinvested capital gains		2,562,710		593,782		–		–		2,346,470		3,101,640		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		8,071,706		3,997,057		98,508		13,477		13,754,646		2,231,907		17,965		819
Equity transactions:
Purchase payments received from contract owners (note 6)		5,413,595		4,740,150		211,549		41,398		8,015,837		8,267,440		49,427		3,104
Transfers between funds		2,521,755		6,725,044		814,033		333,894		12,414,642		21,558,452		307,240		199,838
Surrenders (note 6)		(5,177,630	)	(2,695,940	)	(5,819	)	–		(11,104,790	)	(11,550,652	)	(19,071	)	–
Death benefits (note 4)		(19,609	)	(17,684	)	–		–		(78,939	)	(68,344	)	–		–
Net policy repayments (loans) (note 5)		(14,185	)	(15,066	)	(3,902	)	(8,488	)	(20,030	)	(25,616	)	374		–
Deductions for surrender charges (note 2d)		–		–		(992	)	–		(1,671	)	–		(1,701	)	–
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(712,198	)	(575,576	)	(36,353	)	(5,912	)	(1,270,895	)	(978,192	)	(11,120	)	(2,056	)
Asset charges (note 3):
FPVUL & VEL contracts		–		–		(2,476	)	(465	)	(5,571	)	(892	)	(872	)	(180	)
MSP contracts		–		–		(251	)	(8	)	(189	)	(14	)	(25	)	–
SL contracts		–		–		(357	)	(25	)	(1,426	)	(129	)	(101	)	(40	)
Adjustments to maintain reserves		15,515		233		(7	)	88		23,259		(723	)	(9	)	17
Net equity transactions		2,027,243		8,161,161		975,425		360,482		7,970,227		17,201,330		324,142		200,683
Net change in contract owners’ equity		10,098,949		12,158,218		1,073,933		373,959		21,724,873		19,433,237		342,107		201,502
Contract owners’ equity beginning of period		38,897,901		26,739,683		373,959		–		69,101,226		49,667,989		201,502		–
Contract owners’ equity end of period	$	48,996,850		38,897,901		1,447,892		373,959		90,826,099		69,101,226		543,609		201,502
CHANGES IN UNITS:
Beginning units		2,048,560		1,568,630		33,050		–		4,627,720		3,441,590		19,896		–
Units purchased		515,021		1,454,511		88,498		34,381		1,306,509		3,455,577		34,852		20,121
Units redeemed		(427,033	)	(974,581	)	(4,504	)	(1,331	)	(797,303	)	(2,269,447	)	(3,150	)	(225	)
Ending units		2,136,548		2,048,560		117,044		33,050		5,136,926		4,627,720		51,598		19,896

(Continued)

53

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	TRowMidCap2					TRowNewAmGr				VEWrldEMkt				VEWrldHAs
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(70,941	)	(69,266	)	(36,053	)	(22,046	)	84,938		77,634		(4,133	)	26,413
Realized gain (loss) on investments		2,418,664		3,166,572		168,410		11,876		1,284,003		3,049,750		4,562,925		2,105,837
Change in unrealized gain (loss) on investments		(4,201,040	)	(1,508,118	)	86,063		642,042		2,758,263		(29,014	)	(1,696,211	)	3,024,831
Reinvested capital gains		2,767,140		1,546,394		140,937		–		1,453,634		–		1,034,045		–
Net increase (decrease) in contract owners’ equity resulting from operations		913,823		3,135,582		359,357		631,872		5,580,838		3,098,370		3,896,626		5,157,081
Equity transactions:
Purchase payments received from contract owners (note 6)		2,301,920		3,502,378		1,663,612		1,125,026		1,351,579		1,145,516		1,455,729		1,342,472
Transfers between funds		(2,433,681	)	2,669,954		(1,364,094	)	10,104,458		1,591,024		(2,645,068	)	1,215,205		4,481,862
Surrenders (note 6)		(5,825,971	)	(13,090,592	)	(3,522,388	)	(1,324	)	(1,042,203	)	(1,705,926	)	(1,683,571	)	(3,026,088	)
Death benefits (note 4)		(38,052	)	(9,362	)	(21,928	)	–		(8,419	)	(11,994	)	(36,968	)	(17,978	)
Net policy repayments (loans) (note 5)		–		–		–		–		(487,331	)	(385,634	)	55,554		(469,262	)
Deductions for surrender charges (note 2d)		–		–		–		–		(43,711	)	(56,880	)	(51,830	)	(7,698	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(309,455	)	(369,676	)	(188,860	)	(104,032	)	(611,984	)	(530,786	)	(531,025	)	(385,080	)
Asset charges (note 3):
FPVUL & VEL contracts		–		–		–		–		(44,978	)	(34,020	)	(36,114	)	(23,737	)
MSP contracts		–		–		–		–		(647	)	(480	)	(947	)	(564	)
SL contracts		–		–		–		–		(6,099	)	(4,100	)	(5,760	)	(4,586	)
Adjustments to maintain reserves		3,236		(2,989	)	1,091		(6	)	(345	)	(2,490	)	(2,992	)	(1,623	)
Net equity transactions		(6,302,003	)	(7,300,287	)	(3,432,567	)	11,124,122		696,886		(4,231,862	)	377,281		1,887,718
Net change in contract owners’ equity		(5,388,180	)	(4,164,705	)	(3,073,210	)	11,755,994		6,277,724		(1,133,492	)	4,273,907		7,044,799
Contract owners’ equity beginning of period		28,103,572		32,268,277		14,381,775		2,625,781		13,760,654		14,894,146		16,866,208		9,821,409
Contract owners’ equity end of period	$	22,715,392		28,103,572		11,308,565		14,381,775		20,038,378		13,760,654		21,140,115		16,866,208
CHANGES IN UNITS:
Beginning units		1,481,904		1,942,056		1,278,060		242,954		698,520		954,538		718,664		656,558
Units purchased		153,093		813,669		235,785		1,169,650		136,935		280,840		88,502		553,270
Units redeemed		(506,127	)	(1,273,821	)	(574,051	)	(134,544	)	(113,063	)	(536,858	)	(86,176	)	(491,164	)
Ending units		1,128,870		1,481,904		939,794		1,278,060		722,392		698,520		720,990		718,664

(Continued)

54

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	VKCorPlus					VKEmMkt				VKMidCapG				VKUSRealEst
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	77,741		34,365		1,330,659		768,924		(9,401	)	(2,536	)	788,090		665,982
Realized gain (loss) on investments		(8,603	)	760		(46,443	)	103,612		779,703		612,444		6,245,079		6,251,798
Change in unrealized gain (loss) on investments		542		(4,172	)	(428,311	)	211,347		(658,265	)	(107,928	)	14,169,666		1,277,163
Reinvested capital gains		10,330		7,318		293,124		166,324		414,443		–		5,346,275		1,656,042
Net increase (decrease) in contract owners’ equity resulting from operations		80,010		38,271		1,149,029		1,250,207		526,480		501,980		26,549,110		9,850,985
Equity transactions:
Purchase payments received from contract owners (note 6)		282,476		163,676		1,126,294		1,500,046		625,729		798,064		9,310,060		9,546,940
Transfers between funds		676,418		733,546		(3,393,738	)	1,973,702		689,264		488,932		1,549,147		3,311,152
Surrenders (note 6)		(100,849	)	(5,126	)	(564,400	)	(738,728	)	(225,258	)	(1,480,310	)	(3,486,873	)	(8,585,088	)
Death benefits (note 4)		–		(1,048	)	(21,145	)	(7,230	)	(5,059	)	(6	)	(111,497	)	(38,984	)
Net policy repayments (loans) (note 5)		(17,816	)	3,826		(103,345	)	(237,600	)	(26,087	)	(4,384	)	(516,555	)	(770,598	)
Deductions for surrender charges (note 2d)		(4,133	)	(1,576	)	(29,118	)	(25,750	)	(14,362	)	(29,920	)	(151,721	)	(162,314	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(107,363	)	(69,530	)	(371,946	)	(411,882	)	(173,251	)	(165,004	)	(2,753,121	)	(2,612,016	)
Asset charges (note 3):
FPVUL & VEL contracts		(7,082	)	(3,010	)	(22,200	)	(19,780	)	(10,068	)	(9,426	)	(151,490	)	(118,020	)
MSP contracts		(316	)	(9	)	(831	)	(892	)	(130	)	(156	)	(8,360	)	(9,138	)
SL contracts		(911	)	(266	)	(3,626	)	(3,096	)	(1,151	)	(934	)	(19,001	)	(14,556	)
Adjustments to maintain reserves		15		20		101		65		(135	)	28		9,186		1,172
Net equity transactions		720,439		820,503		(3,383,954	)	2,028,855		859,492		(403,116	)	3,669,775		548,550
Net change in contract owners’ equity		800,449		858,774		(2,234,925	)	3,279,062		1,385,972		98,864		30,218,885		10,399,535
Contract owners’ equity beginning of period		1,402,615		543,841		13,292,409		10,013,347		4,567,963		4,469,099		70,425,922		60,026,387
Contract owners’ equity end of period	$	2,203,064		1,402,615		11,057,484		13,292,409		5,953,935		4,567,963		100,644,807		70,425,922
CHANGES IN UNITS:
Beginning units		126,012		50,918		682,272		582,104		536,530		616,296		2,709,484		2,693,498
Units purchased		84,880		82,630		88,656		302,206		178,601		359,927		412,839		1,231,087
Units redeemed		(20,086	)	(7,536	)	(256,806	)	(202,038	)	(73,255	)	(439,693	)	(303,033	)	(1,215,101	)
Ending units		190,806		126,012		514,122		682,272		641,876		536,530		2,819,290		2,709,484

(Continued)

55

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	WRGrowth				WRRealEstS			WFAVTOpp
Investment activity:	2006			2005	2006		2005	2006		2005
Net investment income (loss)	$	(1,761	)	–	246		–	(26,293	)	(39,171	)
Realized gain (loss) on investments		(74,296	)	–	480		–	3,018,661		5,230,150
Change in unrealized gain (loss) on investments		829		–	4,210		–	(2,833,629	)	(3,039,693	)
Reinvested capital gains		–		–	1,120		–	3,200,397		–
Net increase (decrease) in contract owners’ equity resulting from operations		(75,228	)	–	6,056		–	3,359,136		2,151,286
Equity transactions:
Purchase payments received from contract owners (note 6)		–		–	629		–	3,443,916		5,081,812
Transfers between funds		104,397		–	40,773		–	(5,466,911	)	(8,191,432	)
Surrenders (note 6)		–		–	(319	)	–	(1,514,361	)	(4,838,992	)
Death benefits (note 4)		–		–	–		–	(131,177	)	(19,018	)
Net policy repayments (loans) (note 5)		–		–	–		–	(173,669	)	(60,236	)
Deductions for surrender charges (note 2d)		–		–	–		–	(52,172	)	(83,646	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(6,134	)	–	(479	)	–	(928,700	)	(1,149,974	)
Asset charges (note 3):
FPVUL & VEL contracts		–		–	–		–	(54,429	)	(53,858	)
MSP contracts		–		–	–		–	(1,283	)	(1,436	)
SL contracts		–		–	–		–	(12,740	)	(12,209	)
Adjustments to maintain reserves		8		–	54		–	62		(123	)
Net equity transactions		98,271		–	40,658		–	(4,891,464	)	(9,329,112	)
Net change in contract owners’ equity		23,043		–	46,714		–	(1,532,328	)	(7,177,826	)
Contract owners’ equity beginning of period		–		–	–		–	30,059,998		37,237,824
Contract owners’ equity end of period	$	23,043		–	46,714		–	28,527,670		30,059,998
CHANGES IN UNITS:
Beginning units		–		–	–		–	2,485,342		3,328,492
Units purchased		90,417		–	3,198		–	319,153		1,435,568
Units redeemed		(88,535	)	–	(58	)	–	(703,231	)	(2,278,718	)
Ending units		1,882		–	3,140		–	2,101,264		2,485,342

See accompanying notes to financial statements.

56

NATIONWIDE VLI SEPARATE ACCOUNT–4

NOTES TO FINANCIAL STATEMENTS

December 31, 2006 and 2005

(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:

Portfolios of the AIM Variable Insurance Funds;

    AIM Variable Insurance Funds – AIM V.I. Basic Value Fund – Series I (AIMBValue)

    AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund – Series I (AIMCapAp)

    AIM Variable Insurance Funds – AIM V.I. Capital Development Fund – Series I (AIMCapDev)

    AIM Variable Insurance Funds – AIM V.I. International Growth Fund – Series I (AIMIntGr)

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

Portfolios of the AllianceBernstein Variable Products Series Fund Inc.;

    AllianceBernstein Variable Products Series Fund Inc. – Growth and Income Portfolio – Class A

        (AlVPGrIncA)

    AllianceBernstein Variable Products Series Fund Inc. – International Value Portfolio – Class A

        (AlVPIntlValA)

    AllianceBernstein Variable Products Series Fund Inc. – Small-Mid Cap Value Portfolio – Class A

        (AlVPSmMdCpA)

Portfolios of the American Century Variable Portfolios Inc.;

    American Century Variable Portfolios Inc. – Income & Growth Fund – Class I (ACVPIncGr)

    American Century Variable Portfolios Inc. – Inflation Protection Fund – Class II (ACVPInflPro2)

    American Century Variable Portfolios Inc. – International Fund – Class I (ACVPInt)

    American Century Variable Portfolios Inc. – International Fund – Class III (ACVPInt3)

    American Century Variable Portfolios Inc. – Mid Cap Value Fund – Class I (ACVPMdCpV)

    American Century Variable Portfolios Inc. – Ultra^® Fund – Class I (ACVPUltra)

    American Century Variable Portfolios Inc. – Value Fund – Class I (ACVPVal)

    American Century Variable Portfolios Inc. – Vista^SM Fund – Class I (ACVPVista)

Portfolio of the Baron Capital Funds Trust;

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

BlackRock International Index Portfolio – Class II (BRIntIndex)

    (formerly FAM Variable Series Funds Inc. – Mercury International Index Portfolio – Class II)

BlackRock Large Cap Core V.I. Fund – Class II (BRLrgCp)

    (formerly Mercury Large Cap Core Variable Insurance Fund – Class II)

Portfolio of the Calvert Variable Series Inc.;

    Calvert Variable Series Inc. – Social Equity Portfolio (CalVSSocEq)

Portfolios of the Credit Suisse Trust;

    Credit Suisse Trust – Global Small Cap Portfolio (CSTGlSmCp)

    Credit Suisse Trust – International Focus Portfolio (CSTIntFoc)

    Credit Suisse Trust – Large Cap Value Portfolio (CSTLCapV)

(Continued)

57

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

Portfolios of the Dreyfus Investment Portfolios;

    Dreyfus Investment Portfolios – Mid Cap Stock Index Portfolio – Initial Shares (DryIPMidCap)

    Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio – Service Shares (DryIPSmCap)

Dreyfus Mid Cap Index Fund Inc. (DryMidCap)*

Dreyfus Socially Responsible Growth Fund Inc. – Initial Shares The (DrySRGro)

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

Portfolios of the Dreyfus Variable Investment Fund;

    Dreyfus Variable Investment Fund – Appreciation Portfolio – Initial Shares (DryVIApp)

    Dreyfus Variable Investment Fund – Developing Leaders Portfolio – Initial Shares (DryVIDevLd)

    Dreyfus Variable Investment Fund – International Value Portfolio – Initial Shares (DryVIIntVal)

Portfolio of the DWS Variable Series II;

    DWS Variable Series II – DWS Dreman High Return Equity VIP – Class B (DWSVHghRtrn)

        (formerly Scudder Variable Series II – Dreman High Return Equity Portfolio – Class B)

Portfolios of the Federated Insurance Series;

    Federated Insurance Series – Federated American Leaders Fund II – Primary Shares (FedAmLead)

    Federated Insurance Series – Federated Capital Appreciation Fund II – Primary Shares (FedCapAp)

    Federated Insurance Series – Federated Market Opportunity Fund II – Service Shares (FedMrkOp)

    Federated Insurance Series – Federated Quality Bond Fund II – Primary Shares (FedQualBd)

Portfolios of the Fidelity^® Variable Insurance Products Fund;

    Fidelity^® Variable Insurance Products Fund – Equity-Income Portfolio – Service Class (FidVIPEIS)

    Fidelity^® Variable Insurance Products Fund – Growth Portfolio – Service Class (FidVIPGrS)

    Fidelity^® Variable Insurance Products Fund – High Income Portfolio – Service Class (FidVIPHIS)

    Fidelity^® Variable Insurance Products Fund – Overseas Portfolio – Service Class (FidVIPOvS)

    Fidelity^® Variable Insurance Products Fund – Overseas Portfolio – Service Class R (FidVIPOvSR)

Portfolios of the Fidelity^® Variable Insurance Products Fund II;

    Fidelity^® Variable Insurance Products Fund II – Contrafund^® Portfolio – Service Class (FidVIPConS)

    Fidelity^® Variable Insurance Products Fund II – Investment Grade Bond Portfolio –

        Service Class (FidVIPIGBdS)

Portfolios of the Fidelity^® Variable Insurance Products Fund III;

    Fidelity^® Variable Insurance Products Fund III – Growth Opportunities Portfolio – Service Class (FidVIPGrOpS)

    Fidelity^® Variable Insurance Products Fund III – Mid Cap Portfolio – Service Class (FidVIPMCapS)

    Fidelity^® Variable Insurance Products Fund III – Value Strategies Portfolio – Service Class (FidVIPVaIS)

Portfolios of the Fidelity^® Variable Insurance Products Fund IV;

    Fidelity^® Variable Insurance Products Fund IV – Energy Portfolio – Service Class 2 (FidVIPEnergyS2)

        (formerly Fidelity^® Variable Insurance Products Fund IV – Natural Resources Portfolio – Service

        Class 2)

    Fidelity^® Variable Insurance Products Fund IV – Freedom Fund 2010 Portfolio –

        Service Class (FidVIPFree10S)

    Fidelity^® Variable Insurance Products Fund IV – Freedom Fund 2020 Portfolio –

        Service Class (FidVIPFree20S)

    Fidelity^® Variable Insurance Products Fund IV – Freedom Fund 2030 Portfolio –

        Service Class (FidVIPFree30S)

Portfolios of the Franklin Templeton Variable Insurance Products Trust;

    Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Fund –

        Class 2 (FrVIPIncSec2)

    Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund –

        Class 1 (FrVIPRisDiv)

    Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund –

        Class 1 (FrVIPSmCapV1)

    Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund –

        Class 2 (FrVIPSmCapV2)

(Continued)

58

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

    Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund –

        Class 3 (FrVIPDevMrk3)

    Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund –

        Class 1 (FrVIPForSec)

    Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund –

        Class 2 (FrVIPForSec2)

    Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund –

        Class 3 (FrVIPForSec3)

    Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund –

        Class 3 (FrVIPGlInc3)

Portfolios of the Gartmore Variable Insurance Trust (GVIT);

    Gartmore GVIT – American Funds GGVIT Asset Allocation Fund – Class II (GVITAstAll2)

    Gartmore GVIT – American Funds GGVIT Bond Fund – Class II (GVITBnd2)

    Gartmore GVIT – American Funds GGVIT Global Growth Fund – Class II (GVITGlobGr2)

    Gartmore GVIT – American Funds GGVIT Growth Fund – Class II (GVITGrowth2)

    Gartmore GVIT – Dreyfus GGVIT International Value Fund – Class I (GVITIntValI)

    Gartmore GVIT – Dreyfus GGVIT International Value Fund – Class III (GVITIntVal3)

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

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

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

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

    Gartmore GVIT – Global Financial Services Fund – Class I (GVITGlFin)

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

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

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

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

    Gartmore GVIT – Global Utilities Fund – Class I (GVITGlUtl)

    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 – International Index Fund – Class VI (GVITIntIdx6)

    Gartmore GVIT – Investor Destinations Aggressive Fund – Class II (GVITIDAgg2)

    Gartmore GVIT – Investor Destinations Conservative Fund – Class II (GVITIDCon2)

    Gartmore GVIT – Investor Destinations Moderate Fund – Class II (GVITIDMod2)

    Gartmore GVIT – Investor Destinations Moderately Aggressive Fund – Class II (GVITIDModAg2)

    Gartmore GVIT – Investor Destinations Moderately Conservative Fund – Class II (GVITIDModCon2)

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

    Gartmore GVIT – Mid Cap Growth Fund – Class I (GVITMdCpGr)

    Gartmore GVIT – Mid Cap Index Fund – Class I (GVITMdCpIdx)

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

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

    Gartmore GVIT – Nationwide Fund – Class I (GVITNWFund)

    Gartmore GVIT – Nationwide Leaders Fund – Class I (GVITNWLead)

    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 GGVIT Comstock Value Fund – Class I (GVITVKVal)

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

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

Goldman Sachs Mid Cap Value Fund – Class A (GSMidCpV)*

Portfolio of the Goldman Sachs Variable Insurance Trust (VIT);

    Goldman Sachs VIT Mid Cap Value Fund (GSVMdCpV)

(Continued)

59

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

Portfolios of the Janus Aspen Series;

    Janus Aspen Series – Balanced Portfolio – Service Shares (JanBal)

    Janus Aspen Series – Forty Portfolio – Service Shares (JanForty)

    Janus Aspen Series – Global Technology Portfolio – Service Shares (JanGlTech)

    Janus Aspen Series – INTECH Risk-Managed Core Portfolio – Service Shares (JanRMgCore)

        (formerly Janus Aspen Series – Risk-Managed Core Portfolio – Service Shares)

    Janus Aspen Series – International Growth Portfolio – Service II Shares (JanIntGroS2)

    Janus Aspen Series – International Growth Portfolio – Service Shares (JanIntGroS)

Portfolios of the JPMorgan Insurance Trust;

    JPMorgan Insurance Trust – JPMorgan Insurance Trust Balanced Portfolio 1 (JPMBal)*

    JPMorgan Insurance Trust – JPMorgan Insurance Trust Core Bond Portfolio 1 (JPMCBond)*

        (formerly JPMorgan Investment Trust – JPMorgan Investment Trust Bond Portfolio 1)

    JPMorgan Insurance Trust – JPMorgan Insurance Trust Diversified Equity Portfolio 1 (JPMDivEq)*

    JPMorgan Insurance Trust – JPMorgan Insurance Trust Diversified Mid Cap Growth Portfolio 1

        (JPMMidCapGr)

        (formerly JPMorgan Investment Trust – JPMorgan Investment Trust Mid Cap Growth Portfolio 1)

    JPMorgan Insurance Trust – JPMorgan Insurance Trust Diversified Mid Cap Value Portfolio 1

        (JPMMidCapV)

        (formerly JPMorgan Investment Trust – JPMorgan Investment Trust Mid Cap Value Portfolio 1)

    JPMorgan Insurance Trust – JPMorgan Insurance Trust Equity Index Portfolio 1 (JPMEqIndx)*

    JPMorgan Insurance Trust – JPMorgan Insurance Trust Government Bond Portfolio 1 (JPMGvtBd)*

    JPMorgan Insurance Trust – JPMorgan Insurance Trust Intrepid Mid Cap Portfolio 1 (JPMMidCap)*

        (formerly JPMorgan Investment Trust – JPMorgan Investment Trust Diversified Mid Cap Portfolio 1)

    JPMorgan Insurance Trust – JPMorgan Insurance Trust Large Cap Growth Portfolio 1 (JPMLgCapGr)*

Lord Abbett Series Mid Cap Value Fund – Class VC (LAMidCapV)

Portfolios of the MFS Variable Insurance Trust;

    MFS Variable Insurance Trust – Investors Growth Stock Series – Initial Class (MFSInvGrStI)

    MFS Variable Insurance Trust – Value Series – Initial Class (MFSValueI)

Portfolios of the Neuberger Berman Advisers Management Trust;

    Neuberger Berman Advisers Management Trust – Fasciano Portfolio – Class S (NBAMTFasc)

    Neuberger Berman Advisers Management Trust – Guardian Portfolio – I Class Shares (NBAMTGuard)

    Neuberger Berman Advisers Management Trust – International Portfolio – Class S (NBAMTInt)

    Neuberger Berman Advisers Management Trust – Limited Maturity Bond Portfolio – Class I (NBAMTLMat)

    Neuberger Berman Advisers Management Trust – Mid Cap Growth Portfolio – I Class Shares

        (NBAMTMCGr)

    Neuberger Berman Advisers Management Trust – Partners Portfolio – Class I (NBAMTPart)

    Neuberger Berman Advisers Management Trust – Regency Portfolio – Class I (NBAMTRegI)

    Neuberger Berman Advisers Management Trust – Regency Portfolio – Class S (NBAMTRegS)

    Neuberger Berman Advisers Management Trust – Socially Responsive Portfolio Class I (NBAMSocRes)

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

Portfolios of the Oppenheimer Variable Account Funds;

    Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA –

        Non-Service Shares (OppCapAp) (formerly Oppenheimer Variable Account Funds –

            Oppenheimer Capital Appreciation Fund/VA – Initial Class)

    Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA –

        Non-Service Shares (OppGlSec) (formerly Oppenheimer Variable Account Funds –

            Oppenheimer Global Securities Fund/VA – Initial Class)

    Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA –

        Non-Service Shares (OppHighInc) (formerly Oppenheimer Variable Account Funds –

            Oppenheimer High Income Fund/VA – Initial Class)

(Continued)

60

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

Oppenheimer Variable Account Funds – Oppenheimer Main Street^® Fund/VA –

    Non-Service Shares (OppMSt) (formerly Oppenheimer Variable Account Funds –

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

Oppenheimer Variable Account Funds – Oppenheimer Main Street^® Small Cap Fund/VA –

    Non-Service Shares (OppMStSCap) (formerly Oppenheimer Variable Account Funds –

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

Oppenheimer Variable Account Funds – Oppenheimer Mid Cap Fund/VA –

    Non-Service Shares (OppMidCap) (formerly Oppenheimer Variable Account Funds –

        Oppenheimer Aggressive Growth Fund/VA – Initial Class)

Portfolios of the PIMCO Variable Insurance Trust;

PIMCO Variable Insurance Trust – PIMCO VIT All Asset Portfolio – Administrative Shares (PVITAllAst)

PIMCO Variable Insurance Trust – PIMCO VIT Low Duration Portfolio – Administrative Shares

    (PVITLowDur)

PIMCO Variable Insurance Trust – PIMCO VIT Real Return Portfolio – Administrative Shares

    (PVITRealRet)

PIMCO Variable Insurance Trust – PIMCO VIT Total Return Portfolio – Administrative Shares

    (PVITTotRet)

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

Portfolios of the Putnam Variable Trust;

Putnam Variable Trust – Putnam VT Growth & Income Fund – IB Shares (PVTGroIncIB)

Putnam Variable Trust – Putnam VT International Equity Fund – IB Shares (PVTIntEqIB)

Putnam Variable Trust – Putnam VT Voyager Fund – IB Shares (PVTVoyIB)

Royce Capital Fund – Micro Cap (RCFMicroCap)

T. Rowe Price Blue Chip Growth Portfolio – II (TRoeBlChip2)

T. Rowe Price Equity Income Fund (TRowEqInc)*

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

T. Rowe Price Limited Term Bond Portfolio – Class II (TRowLtdTBd2)

T. Rowe Price Mid Cap Growth Fund Inc. (TRowMidCap)*

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

T. Rowe Price New America Growth Portfolio (TRowNewAmGr)

T. Rowe Price Personal Strategy Balanced Portfolio (TRowPerStrBal)*

Portfolios of the Van Eck Worldwide Insurance Trust;

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

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

Portfolios of the Van Kampen – The Universal Institutional Funds Inc.;

Van Kampen – The Universal Institutional Funds Inc. – Core Plus Fixed Income Portfolio – Class I

    (VKCorPlus)

Van Kampen – The Universal Institutional Funds Inc. – Emerging Markets Debt Portfolio – Class I

    (VKEmMkt)

Van Kampen – The Universal Institutional Funds Inc. – Mid Cap Growth Portfolio – Class I (VKMidCapG)

Van Kampen – The Universal Institutional Funds Inc. – U.S. Real Estate Portfolio – Class I

    (VKUSRealEst)

Portfolios of the 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 (WRMidCpGr)*

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

Portfolios of the Wells Fargo Advantage Funds^SM;

Wells Fargo Advantage Funds^SM – Opportunity Fund – Investor Class (WFAFOpp)*

Wells Fargo Advantage Variable Trust Funds^SM –

Wells Fargo Advantage VT Opportunity Fund^SM (WFAVTOpp)

(Continued)

61

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

At December 31, 2006, 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.

(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, 2006 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 First in – First out 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.

(f) New Accounting Pronouncement

In September 2006, the Financial Accounting Standards Board issued Statement of Financial Accounting Standard (SFAS) 157. SFAS 157 also provides guidance regarding the extent to which companies measure assets and liabilities at fair value, the information used to measure fair value, and the effect of fair value measurements on earnings. SFAS 157 applies whenever other standards require (or permit) assets or liabilities to be measured at fair value but does not expand the use of fair value in any new circumstances. SFAS 157 is effective for fiscal years beginning after November 15, 2007, with early adoption permitted. SFAS 157 is not expected to have a material impact on the Accounts’ financial position or results of their operations upon adoption.

(Continued)

62

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

(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, 2006 and 2005, total front-end sales charge deductions were $30,403,541 and $38,078,931, 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).

(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.

(Continued)

63

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

(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.

(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.

(Continued)

64

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

(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, 2006 and 2005, total transfers into the Account from the fixed account were $33,285,412 and $33,113,861, respectively, and total transfers from the Account to the fixed account were $48,694,028 and $55,474,580, respectively.

(Continued)

65

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 universal life 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, 2006.

	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 Variable Insurance Funds – AIM V.I. Basic Value Fund – Series I
2006	0.00%	334,122	$	17.502242	$	5,847,884	0.42%	13.20%
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 Variable Insurance Funds – AIM V.I. Capital Appreciation Fund – Series I
2006	0.00%	102,104		15.288632		1,561,030	0.06%	6.30%
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 Variable Insurance Funds – AIM V.I. Capital Development Fund – Series I Shares
2006	0.00%	180,668		19.610981		3,543,077	0.00%	16.52%
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%
AllianceBernstein Variable Products Series Fund, Inc. – Growth and Income Portfolio – Class A
2006	0.00%	241,896		18.208779		4,404,631	1.37%	17.29%
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%
AllianceBernstein Variable Products Series Fund, Inc. – Small-Mid Cap Value Portfolio – Class A
2006	0.00%	168,136		20.134859		3,385,395	0.45%	14.42%
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 Variable Portfolios, Inc. – Income & Growth Fund – Class I
2006	0.00%	1,305,236		17.707797		23,112,854	1.85%	17.09%
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%
American Century Variable Portfolios, Inc. – Inflation Protection Fund – Class II
2006	0.00%	555,240		11.270913		6,258,062	3.48%	1.59%
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
American Century Variable Portfolios, Inc. – International Fund – Class I
2006	0.00%	1,069,366		18.515660		19,800,017	1.58%	25.03%
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%
American Century Variable Portfolios, Inc. – International Fund – Class III
2006	0.00%	548,782		14.595156		8,009,559	1.38%	25.03%
2005	0.00%	366,150		11.673757		4,274,346	0.00%	16.74%	05/02/05
American Century Variable Portfolios, Inc. – Mid Cap Value Fund – Class I
2006	0.00%	88,992		13.620466		1,212,113	0.96%	20.30%
2005	0.00%	57,178		11.322176		647,379	1.24%	13.22%	05/02/05

(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***
American Century Variable Portfolios, Inc. – Ultra® Fund – Class I
2006	0.00%	257,010	$	10.980437	$	2,822,082	0.00%	-3.28%
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 Variable Portfolios, Inc. – Value Fund – Class I
2006	0.00%	2,442,604		22.240206		54,324,016	1.41%	18.65%
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%
American Century Variable Portfolios, Inc. – VistaSM Fund – Class I
2006	0.00%	13,662		12.496264		170,724	0.00%	9.01%
2005	0.00%	7,434		11.463606		85,220	0.00%	14.64%	05/02/05
Credit Suisse Trust – Global Small Cap Portfolio
2006	0.00%	46,476		15.193949		706,154	0.00%	13.20%
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%
Credit Suisse Trust – International Focus Portfolio
2006	0.00%	121,824		15.867715		1,933,069	1.01%	18.65%
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%
Credit Suisse Trust – Large Cap Value Portfolio
2006	0.00%	96,894		18.117019		1,755,430	0.89%	19.35%
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%
Dreyfus Investment Portfolios – European Equity Portfolio
2002	0.00%	282		7.045961		1,987	0.00%	-22.64%
Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio – Service Shares
2006	0.00%	707,480		15.813075		11,187,434	0.38%	14.41%
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 Socially Responsible Growth Fund, Inc. – Initial Shares, The
2006	0.00%	1,115,238		12.473391		13,910,800	0.11%	9.20%
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%
Dreyfus Stock Index Fund, Inc. – Initial Shares
2006	0.00%	10,489,244		16.424348		172,278,994	1.64%	15.50%
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%
Dreyfus Variable Investment Fund – Appreciation Portfolio – Initial Shares
2006	0.00%	1,210,752		16.853206		20,405,053	1.53%	16.48%
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%

(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***
Dreyfus Variable Investment Fund – Developing Leaders Portfolio – Initial Shares
2006	0.00%	52,662	$	15.770049	$	830,482	0.40%	3.77%
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 Insurance Series – Federated American Leaders Fund II – Primary Shares
2006	0.00%	21,354		16.967010		362,314	1.46%	16.81%
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 Insurance Series – Federated Capital Appreciation Fund II – Primary Shares
2006	0.00%	27,898		15.330912		427,702	0.75%	16.21%
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
Federated Insurance Series – Federated Market Opportunity Fund II – Service Shares
2006	0.00%	3,964		10.395256		41,207	0.00%	3.95%	05/01/06
Federated Insurance Series – Federated Quality Bond Fund II – Primary Shares
2006	0.00%	1,685,612		14.723396		24,817,933	5.17%	4.15%
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%
Fidelity® Variable Insurance Products Fund – Equity-Income Portfolio – Service Class
2006	0.00%	3,666,100		18.625658		68,283,525	3.15%	20.08%
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%
Fidelity® Variable Insurance Products Fund – Growth Portfolio – Service Class
2006	0.00%	3,992,818		15.113032		60,343,586	0.28%	6.73%
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%
Fidelity® Variable Insurance Products Fund – High Income Portfolio – Service Class
2006	0.00%	1,194,886		11.561165		13,814,274	7.58%	11.18%
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%
Fidelity® Variable Insurance Products Fund – Overseas Portfolio – Service Class
2006	0.00%	963,186		18.554369		17,871,308	0.84%	17.95%
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%
Fidelity® Variable Insurance Products Fund – Overseas Portfolio – Service Class R
2006	0.00%	985,990		14.743687		14,537,128	0.62%	17.95%
2005	0.00%	579,174		12.499996		7,239,673	0.00%	25.00%	05/02/05
Fidelity® Variable Insurance Products Fund II – Contrafund® Portfolio – Service Class
2006	0.00%	4,668,602		23.057410		107,645,870	1.12%	11.59%
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%

(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***
Fidelity® Variable Insurance Products Fund II – Investment Grade Bond Portfolio – Service Class
2006	0.00%	855,338	$	11.348586	$	9,706,877	3.34%	4.30%
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® Variable Insurance Products Fund III – Growth Opportunities Portfolio – Service Class
2006	0.00%	1,014,378		11.421365		11,585,581	0.69%	5.30%
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%
Fidelity® Variable Insurance Products Fund III – Mid Cap Portfolio – Service Class
2006	0.00%	1,042,192		23.389128		24,375,962	0.23%	12.59%
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® Variable Insurance Products Fund III – Value Strategies Portfolio – Service Class
2006	0.00%	494,372		16.095011		7,956,923	0.49%	16.20%
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® Variable Insurance Products Fund IV – Energy Portfolio – Service Class 2
2006	0.00%	488,940		15.759845		7,705,619	0.75%	16.62%
2005	0.00%	243,526		13.514321		3,291,089	0.64%	35.14%	05/02/05
Fidelity® Variable Insurance Products Fund IV – Freedom Fund 2010 Portfolio – Service Class
2006	0.00%	56,804		11.863160		673,875	2.70%	9.78%
2005	0.00%	15,242		10.806063		164,706	0.47%	8.06%	05/02/05
Fidelity® Variable Insurance Products Fund IV – Freedom Fund 2020 Portfolio – Service Class
2006	0.00%	109,012		12.431698		1,355,204	2.11%	11.81%
2005	0.00%	52,700		11.118664		585,954	1.32%	11.19%	05/02/05
Fidelity® Variable Insurance Products Fund IV – Freedom Fund 2030 Portfolio – Service Class
2006	0.00%	54,734		12.819894		701,684	2.16%	13.15%
2005	0.00%	23,432		11.329788		265,480	1.38%	13.30%	05/02/05
Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Fund – Class 2
2006	0.00%	117,590		11.216304		1,318,925	0.07%	12.16%	05/01/06
Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund – Class 1
2006	0.00%	943,340		16.669002		15,724,536	1.23%	17.43%
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 Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund – Class 1
2006	0.00%	484,062		21.190555		10,257,542	0.82%	17.30%
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 Variable Insurance Products Trust – Templeton Developing Markets Securities Fund – Class 3
2006	0.00%	310,222		16.410826		5,090,999	1.29%	28.17%
2005	0.00%	159,292		12.804274		2,039,618	0.06%	28.04%	05/02/05
Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund – Class 1
2006	0.00%	174,552		21.206570		3,701,649	1.39%	21.70%
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 Variable Insurance Products Trust – Templeton Foreign Securities Fund – Class 3
2006	0.00%	424,646		13.711150		5,822,385	1.34%	21.46%
2005	0.00%	237,992		11.288544		2,686,583	0.34%	12.89%	05/02/05

(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***
Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund – Class 3
2006	0.00%	138,640	$	11.150160	$	1,545,858	2.84%	12.84%
2005	0.00%	53,324		9.881172		526,904	1.81%	-1.19%	05/02/05
Gartmore GVIT – American Funds GVIT Asset Allocation Fund – Class II
2006	0.00%	166,024		10.556998		1,752,715	3.37%	5.57%	05/01/06
Gartmore GVIT – American Funds GVIT Bond Fund – Class II
2006	0.00%	70,612		10.538858		744,170	0.90%	5.39%	05/01/06
Gartmore GVIT – American Funds GVIT Global Growth Fund – Class II
2006	0.00%	150,826		10.842096		1,635,270	0.23%	8.42%	05/01/06
Gartmore GVIT – American Funds GVIT Growth Fund – Class II
2006	0.00%	168,526		10.364424		1,746,675	1.12%	3.64%	05/01/06
Gartmore GVIT – Dreyfus GGVIT International Value Fund – Class I
2006	0.00%	134,862		23.062454		3,110,249	2.07%	22.67%
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 GGVIT International Value Fund – Class III
2006	0.00%	575,980		14.056822		8,096,448	2.01%	22.75%
2005	0.00%	402,348		11.451970		4,607,677	0.95%	14.52%	05/02/05
Gartmore GVIT – Emerging Markets Fund – Class I
2006	0.00%	270,924		25.339713		6,865,136	0.71%	36.72%
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%
Gartmore GVIT – Emerging Markets Fund – Class III
2006	0.00%	714,108		18.224168		13,014,024	0.72%	36.64%
2005	0.00%	462,520		13.336908		6,168,587	0.20%	33.37%	05/02/05
Gartmore GVIT – Federated GGVIT High Income Bond Fund – Class I
2006	0.00%	882,542		16.420739		14,491,992	7.41%	10.60%
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%
Gartmore GVIT – Federated GGVIT High Income Bond Fund – Class III
2006	0.00%	701,700		11.657910		8,180,355	7.85%	10.60%
2005	0.00%	429,384		10.540776		4,526,041	6.02%	5.41%	05/02/05
Gartmore GVIT – Global Financial Services Fund – Class I
2006	0.00%	113,986		19.830405		2,260,389	1.89%	20.32%
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
2006	0.00%	124,614		13.695316		1,706,628	0.00%	2.71%
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
Gartmore GVIT – Global Health Sciences Fund – Class III
2006	0.00%	212,658		11.032385		2,346,125	0.00%	2.70%
2005	0.00%	128,282		10.742057		1,378,013	0.00%	7.42%	05/02/05
Gartmore GVIT – Global Technology and Communications Fund – Class I
2006	0.00%	515,480		3.531877		1,820,612	0.00%	11.17%
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%

(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***
Gartmore GVIT – Global Technology and Communications Fund – Class III
2006	0.00%	136,014	$	13.682536	$	1,861,016	0.00%	11.08%
2005	0.00%	89,142		12.317458		1,098,003	0.00%	23.17%	05/02/05
Gartmore GVIT – Global Utilities Fund – Class I
2006	0.00%	178,132		20.489395		3,649,817	2.84%	37.56%
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
2006	0.00%	2,428,156		16.013288		38,882,761	3.95%	3.34%
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%
Gartmore GVIT – Growth Fund: Class I
2006	0.00%	1,876,832		8.279324		15,538,900	0.05%	6.17%
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%
Gartmore GVIT – International Growth Fund – Class I
2006	0.00%	554,752		13.430598		7,450,651	0.84%	32.96%
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%
Gartmore GVIT – International Index Fund – Class VI
2006	0.00%	20,334		10.975279		223,171	1.50%	9.75%	05/01/06
Gartmore GVIT – Investor Destinations Aggressive Fund – Class II
2006	0.00%	1,105,550		15.802084		17,469,994	2.11%	16.87%
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 – Investor Destinations Conservative Fund – Class II
2006	0.00%	628,508		12.447546		7,823,382	3.23%	6.16%
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 – Investor Destinations Moderate Fund – Class II
2006	0.00%	3,554,252		14.099052		50,111,584	2.47%	11.35%
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 – Investor Destinations Moderately Aggressive Fund – Class II
2006	0.00%	4,071,170		15.125018		61,576,520	2.25%	14.54%
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 – Investor Destinations Moderately Conservative Fund – Class II
2006	0.00%	1,022,586		13.308971		13,609,567	2.84%	8.42%
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

(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 – J.P. Morgan GVIT Balanced Fund: Class I
2006	0.00%	919,452	$	13.567085	$	12,474,283	2.25%	12.25%
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%
Gartmore GVIT – Mid Cap Growth Fund – Class I
2006	0.00%	961,292		15.331247		14,737,805	0.00%	9.91%
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%
Gartmore GVIT – Mid Cap Index Fund – Class I
2006	0.00%	1,451,458		24.770554		35,953,419	1.14%	9.89%
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%
Gartmore GVIT – Money Market Fund – Class I
2006	0.00%	7,870,664		13.359424		105,147,538	4.43%	4.53%
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%
Gartmore GVIT – Nationwide® Fund – Class I
2006	0.00%	2,948,242		15.389126		45,370,868	1.09%	13.63%
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%
Gartmore GVIT – Nationwide® Leaders Fund – Class I
2006	0.00%	85,138		16.116355		1,372,114	0.70%	16.05%
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
Gartmore GVIT – Small Cap Growth Fund – Class I
2006	0.00%	807,056		17.366191		14,015,489	0.00%	3.21%
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%
Gartmore GVIT – Small Cap Value Fund – Class I
2006	0.00%	1,678,046		28.638579		48,056,853	0.43%	17.29%
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%
Gartmore GVIT – Small Company Fund – Class I
2006	0.00%	1,691,018		25.805828		43,638,120	0.10%	12.04%
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%
Gartmore GVIT – Turner GVIT 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%

(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 – U.S. Growth Leaders Fund – Class I
2006	0.00%	250,268	$	15.705651	$	3,930,622	0.27%	-0.29%
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 GGVIT Comstock Value Fund: Class I
2006	0.00%	875,334		14.961750		13,096,528	1.73%	15.91%
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%
Gartmore GVIT – Van Kampen GVIT Multi-Sector Bond Fund – Class I
2006	0.00%	657,636		15.733416		10,346,861	4.07%	4.84%
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%
Gartmore GVIT – Worldwide Leaders Fund – Class I
2006	0.00%	249,376		18.389109		4,585,802	0.85%	25.88%
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%
Janus Aspen Series – Balanced Portfolio – Service Shares
2006	0.00%	116,884		14.708447		1,719,182	1.99%	10.41%
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 Aspen Series – Forty Portfolio – Service Shares
2006	0.00%	2,885,418		9.429195		27,207,169	0.14%	9.12%
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%
Janus Aspen Series – Global Technology Portfolio – Service Shares
2006	0.00%	2,894,560		4.318333		12,499,674	0.00%	7.83%
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%
Janus Aspen Series – INTECH Risk-Managed Core Portfolio – Service Shares
2006	0.00%	30,204		17.753498		536,227	0.11%	10.77%
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
Janus Aspen Series – International Growth Portfolio – Service II Shares
2006	0.00%	754,850		11.629148		8,778,262	1.78%	16.29%	05/01/06
Janus Aspen Series – International Growth Portfolio – Service Shares
2006	0.00%	2,503,690		14.528655		36,375,248	1.89%	46.63%
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%
MFS® Variable Insurance Trust – Investors Growth Stock Series – Initial Class
2006	0.00%	314,824		14.233850		4,481,158	0.00%	7.58%
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

(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***
MFS® Variable Insurance Trust – Value Series – Initial Class
2006	0.00%	200,260	$	18.360218	$	3,676,817	0.97%	20.84%
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
Nationwide® GVIT 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%
Neuberger Berman Advisers Management Trust – Fasciano Portfolio – Class S
2006	0.00%	54,558		15.260818		832,600	0.00%	5.25%
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%
Neuberger Berman Advisers Management Trust – Guardian Portfolio – I Class Shares
2006	0.00%	477,638		20.790721		9,930,438	0.70%	13.38%
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%
Neuberger Berman Advisers Management Trust – International Portfolio – Class S
2006	0.00%	140,884		14.506093		2,043,676	0.29%	23.45%
2005	0.00%	53,950		11.750261		633,927	0.26%	17.50%	05/02/05
Neuberger Berman Advisers Management Trust – Limited Maturity Bond Portfolio – Class I
2006	0.00%	903,048		10.759706		9,716,531	3.07%	4.20%
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 Advisers Management Trust – Mid Cap Growth Portfolio – I Class Shares
2006	0.00%	1,474,382		20.523539		30,259,536	0.00%	14.69%
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%
Neuberger Berman Advisers Management Trust – Partners Portfolio® – Class I
2006	0.00%	967,144		17.686426		17,105,321	0.68%	12.24%
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%
Neuberger Berman Advisers Management Trust – Regency Portfolio – Class S
2006	0.00%	62,360		12.937253		806,767	0.48%	10.94%
2005	0.00%	23,100		11.661977		269,392	0.00%	16.62%	05/02/05
Neuberger Berman Advisers Management Trust – Socially Responsive Portfolio® – Class I
2006	0.00%	160,134		17.031699		2,727,354	0.16%	13.70%
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
Oppenheimer Global Securities Fund/VA – Class 3
2006	0.00%	1,194,348		14.192798		16,951,140	0.84%	17.69%
2005	0.00%	723,136		12.059670		8,720,782	0.00%	20.60%	05/02/05
Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA – Non-Service Shares
2006	0.00%	2,846,436		17.801944		50,672,094	0.38%	7.95%
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%

(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***
Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA – Non-Service Shares
2006	0.00%	1,579,632	$	15.072696	$	23,809,313	1.07%	17.69%
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%
Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA – Non-Service Shares
2006	0.00%	324,172		13.641009		4,422,033	6.62%	9.42%
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
Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA – Non-Service Shares
2006	0.00%	2,564,464		14.338943		36,771,703	1.10%	15.02%
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%
Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA – Non-Service Shares
2006	0.00%	215,614		20.937110		4,514,334	0.13%	15.00%
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 Variable Account Funds – Oppenheimer Mid Cap Fund/VA – Non-Service Shares
2006	0.00%	1,834,314		15.810416		29,001,267	0.00%	2.96%
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%
Putnam Variable Trust – Putnam VT Growth and Income Fund – IB Shares
2006	0.00%	79,204		16.838971		1,333,714	1.47%	15.91%
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 Variable Trust – Putnam VT International Equity Fund – IB Shares
2006	0.00%	227,790		21.310423		4,854,301	0.36%	27.72%
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 Variable Trust – Putnam VT Voyager Fund – IB Shares
2006	0.00%	28,784		13.874456		399,362	0.11%	5.44%
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 Blue Chip Growth Portfolio – II
2006	0.00%	117,044		12.370493		1,447,892	0.34%	9.33%
2005	0.00%	33,050		11.314946		373,959	0.16%	13.15%	05/02/05
T. Rowe Price Equity Income Portfolio – II
2006	0.00%	232,318		17.880327		4,153,922	1.35%	18.65%
2005	0.00%	69,938		15.070153		1,053,976	1.39%	3.69%
T. Rowe Price Limited Term Bond Portfolio – Class II
2006	0.00%	51,598		10.535464		543,609	3.73%	4.03%
2005	0.00%	19,896		10.127763		201,502	2.09%	1.28%	05/02/05
Van Eck Worldwide Insurance Trust – Worldwide Emerging Markets Fund – Initial Class
2006	0.00%	565,466		26.133423		14,777,562	0.56%	39.49%
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%

(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***
Van Eck Worldwide Insurance Trust – Worldwide Hard Assets Fund – Initial Class
2006	0.00%	487,264	$	27.499610	$	13,399,570	0.06%	24.49%
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%
Van Kampen – The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio – Class I
2006	0.00%	190,806		11.546094		2,203,064	4.06%	3.73%
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 – The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio – Class I
2006	0.00%	296,826		21.725302		6,448,634	10.28%	10.81%
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%
Van Kampen – The Universal Institutional Funds, Inc. – Mid Cap Growth Portfolio – Class I
2006	0.00%	282,660		9.364438		2,646,952	0.00%	9.27%
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%
Van Kampen – The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio – Class I
2006	0.00%	1,384,756		36.117848		50,014,407	1.07%	38.04%
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%
Wells Fargo Advantage Variable Trust FundsSM – Wells Fargo Advantage VT Opportunity FundSM
2006	0.00%	1,303,766		13.648563		17,794,532	0.00%	12.22%
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%
The BEST of AMERICA® America’s FUTURE Life SeriesSM Reduced Fee Tier (0.10%)
AIM Variable Insurance Funds – AIM V.I. Basic Value Fund – Series I
2006	0.10%	1,258		17.426798		21,923	0.42%	13.09%
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 Variable Insurance Funds – AIM V.I. Capital Appreciation Fund – Series I
2003	0.10%	1,045		13.277382		13,875	0.00%	35.22%
AIM Variable Insurance Funds – AIM V.I. Capital Development Fund – Series I Shares
2006	0.10%	100,288		19.526450		1,958,269	0.00%	16.40%
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%
AllianceBernstein Variable Products Series Fund, Inc. – Growth and Income Portfolio – Class A
2006	0.10%	3,554		18.130310		64,435	1.37%	17.17%
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 Variable Portfolios, Inc. – Income & Growth Fund – Class I
2006	0.10%	23,772		13.528072		321,589	1.85%	16.97%
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%

(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 Variable Portfolios, Inc. – International Fund – Class I
2006	0.10%	620,316	$	15.094317	$	9,363,246	1.58%	24.90%
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%
American Century Variable Portfolios, Inc. – Ultra® Fund – Class I
2006	0.10%	28,308		10.929351		309,388	0.00%	-3.37%
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 Variable Portfolios, Inc. – Value Fund – Class I
2006	0.10%	62,962		21.860590		1,376,386	1.41%	18.53%
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%
Baron Capital Funds Trust – Baron Capital Asset Fund – Insurance Shares
2006	0.10%	80,920		18.851618		1,525,473	0.00%	15.41%
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 Variable Series, Inc. – Social Equity Portfolio
2006	0.10%	1,026		15.439612		15,841	0.00%	9.95%
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%
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%
Dreyfus Investment Portfolios – Mid Cap Stock Index Portfolio – Initial Shares
2006	0.10%	2,040		17.625316		35,956	0.37%	7.64%
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 Investment Portfolios – Small Cap Stock Index Portfolio – Service Shares
2006	0.10%	28,070		15.739536		441,809	0.38%	14.30%
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 Socially Responsible Growth Fund, Inc. – Initial Shares, The
2006	0.10%	84,702		9.023502		764,309	0.11%	9.09%
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%
Dreyfus Stock Index Fund, Inc. – Initial Shares
2006	0.10%	363,900		12.054530		4,386,643	1.64%	15.38%
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%
Dreyfus Variable Investment Fund – Appreciation Portfolio – Initial Shares
2006	0.10%	41,554		12.369250		513,992	1.53%	16.36%
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%

(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***
Dreyfus Variable Investment Fund – International Value Portfolio – Initial Shares
2006	0.10%	70,076	$	21.100318	$	1,478,626	1.25%	22.47%
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 Insurance Series – Federated Quality Bond Fund II – Primary Shares
2006	0.10%	380,302		14.611096		5,556,629	5.17%	4.05%
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%
Fidelity® Variable Insurance Products Fund – Equity-Income Portfolio – Service Class
2006	0.10%	114,862		16.213431		1,862,307	3.15%	19.96%
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%
Fidelity® Variable Insurance Products Fund – Growth Portfolio – Service Class
2006	0.10%	963,760		9.843867		9,487,125	0.28%	6.63%
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%
Fidelity® Variable Insurance Products Fund – High Income Portfolio – Service Class
2006	0.10%	628,630		11.430519		7,185,567	7.58%	11.07%
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%
Fidelity® Variable Insurance Products Fund – Overseas Portfolio – Service Class
2006	0.10%	106,768		15.818147		1,688,872	0.84%	17.83%
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%
Fidelity® Variable Insurance Products Fund II – Contrafund® Portfolio – Service Class
2006	0.10%	155,940		16.622464		2,592,107	1.12%	11.48%
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%
Fidelity® Variable Insurance Products Fund III – Growth Opportunities Portfolio – Service Class
2006	0.10%	18,424		9.223917		169,941	0.69%	5.20%
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%
Fidelity® Variable Insurance Products Fund III – Value Strategies Portfolio – Service Class
2006	0.10%	4,096		16.020178		65,619	0.49%	16.08%
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 Variable Insurance Products Trust – Templeton Foreign Securities Fund – Class 2
2006	0.10%	8,186		19.804108		162,116	1.24%	21.32%
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%

(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 – Emerging Markets Fund – Class I
2006	0.10%	48,516	$	25.182064	$	1,221,733	0.71%	36.58%
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%
Gartmore GVIT – Federated GGVIT High Income Bond Fund – Class I
2006	0.10%	9,510		14.865456		141,370	7.41%	10.49%
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%
Gartmore GVIT – Global Financial Services Fund – Class I
2006	0.10%	98,040		19.738206		1,935,134	1.89%	20.20%
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
2006	0.10%	13,596		13.631572		185,335	0.00%	2.61%
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%
Gartmore GVIT – Global Technology and Communications Fund – Class I
2006	0.10%	101,564		3.509892		356,479	0.00%	11.06%
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%
Gartmore GVIT – Global Utilities Fund – Class I
2006	0.10%	11,378		20.394132		232,044	2.84%	37.42%
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
2006	0.10%	78,218		14.788907		1,156,759	3.95%	3.24%
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%
Gartmore GVIT – Growth Fund: Class I
2006	0.10%	51,726		6.260681		323,840	0.05%	6.06%
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%
Gartmore GVIT – International Growth Fund – Class I
2006	0.10%	109,564		13.347009		1,462,352	0.84%	32.83%
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%
Gartmore GVIT – Investor Destinations Aggressive Fund – Class II
2006	0.10%	23,050		15.724474		362,449	2.11%	16.75%
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

(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 – Investor Destinations Conservative Fund – Class II
2006	0.10%	26,518	$	12.386397	$	328,462	3.23%	6.06%
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%
Gartmore GVIT – Investor Destinations Moderate Fund – Class II
2006	0.10%	1,864		14.029768		26,151	2.47%	11.24%
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 – Investor Destinations Moderately Aggressive Fund – Class II
2006	0.10%	18,108		15.050687		272,538	2.25%	14.43%
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 – Investor Destinations Moderately Conservative Fund – Class II
2006	0.10%	8,862		13.243591		117,365	2.84%	8.31%
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%
Gartmore GVIT – J.P. Morgan GVIT Balanced Fund: Class I
2006	0.10%	64,592		12.335682		796,786	2.25%	12.14%
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%
Gartmore GVIT – Mid Cap Growth Fund – Class I
2006	0.10%	101,742		11.829636		1,203,571	0.00%	9.80%
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%
Gartmore GVIT – Mid Cap Index Fund – Class I
2006	0.10%	154,944		22.525451		3,490,183	1.14%	9.78%
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%
Gartmore GVIT – Money Market Fund – Class I
2002	0.10%	1,193,207		11.481201		13,699,449	1.51%	1.11%
Gartmore GVIT – Money Market Fund – Class V
2006	0.10%	6,733,802		10.900267		73,400,240	4.63%	4.51%
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 – Nationwide® Fund – Class I
2006	0.10%	37,804,244		12.681766		479,424,576	1.09%	13.51%
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%
Gartmore GVIT – Nationwide® Leaders Fund – Class I
2006	0.10%	8,386		16.041401		134,523	0.70%	15.93%
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%

(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***
Gartmore GVIT – Small Cap Growth Fund – Class I
2006	0.10%	82,090	$	17.233732	$	1,414,717	0.00%	3.10%
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%
Gartmore GVIT – Small Cap Value Fund – Class I
2006	0.10%	237,134		30.784276		7,299,999	0.43%	17.18%
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%
Gartmore GVIT – Small Company Fund – Class I
2006	0.10%	109,004		26.100738		2,845,085	0.10%	11.93%
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%
Gartmore GVIT – Turner GVIT 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%
Gartmore GVIT – U.S. Growth Leaders Fund – Class I
2006	0.10%	74,050		15.632647		1,157,598	0.27%	-0.39%
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 GGVIT Comstock Value Fund: Class I
2006	0.10%	5,264		12.540372		66,013	1.73%	15.79%
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%
Gartmore GVIT – Van Kampen GVIT Multi-Sector Bond Fund – Class I
2006	0.10%	18,772		15.247568		286,227	4.07%	4.73%
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%
Gartmore GVIT – Worldwide Leaders Fund – Class I
2006	0.10%	64,922		14.839096		963,384	0.85%	25.76%
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%
Goldman Sachs Variable Insurance Trust – Goldman Sachs VIT Mid Cap Value Fund
2006	0.10%	29,454		20.859259		614,389	0.98%	16.05%
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 Aspen Series – Balanced Portfolio – Service Shares
2006	0.10%	8,030		14.645065		117,600	1.99%	10.30%
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 Aspen Series – Forty Portfolio – Service Shares
2006	0.10%	124,964		9.364110		1,170,177	0.14%	9.01%
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%

(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***
Janus Aspen Series – Global Technology Portfolio – Service Shares
2006	0.10%	179,882	$	4.288525	$	771,428	0.00%	7.72%
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%
Janus Aspen Series – International Growth Portfolio – Service Shares
2006	0.10%	206,152		14.428484		2,974,461	1.89%	46.48%
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%
JPMorgan Insurance Trust – JPMorgan Insurance Trust Diversified Mid Cap Growth Portfolio 1
2006	0.10%	35,396		17.787877		629,620	0.00%	11.28%
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 Insurance Trust – JPMorgan Insurance Trust Diversified Mid Cap Value Portfolio 1
2006	0.10%	5,886		19.411280		114,255	1.18%	16.60%
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%
Nationwide® GVIT 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%
Neuberger Berman Advisers Management Trust – Fasciano Portfolio – Class S
2006	0.10%	9,420		15.195016		143,137	0.00%	5.15%
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%
Neuberger Berman Advisers Management Trust – Guardian Portfolio – I Class Shares
2006	0.10%	88,754		14.953594		1,327,191	0.70%	13.26%
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%
Neuberger Berman Advisers Management Trust – Mid Cap Growth Portfolio – I Class Shares
2006	0.10%	366,596		14.953339		5,481,834	0.00%	14.58%
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%
Neuberger Berman Advisers Management Trust – Partners Portfolio® – Class I
2006	0.10%	148,132		16.464820		2,438,967	0.68%	12.13%
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%
Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA – Non-Service Shares
2006	0.10%	530,754		13.316078		7,067,562	0.38%	7.84%
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%
Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA – Non-Service Shares
2006	0.10%	150,202		14.972632		2,248,919	1.07%	17.57%
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%

(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***
Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA – Non-Service Shares
2006	0.10%	43,364	$	13.108136	$	568,421	1.10%	14.91%
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%
Oppenheimer Variable Account Funds – Oppenheimer Mid Cap Fund/VA – Non-Service Shares
2006	0.10%	445,344		12.637642		5,628,098	0.00%	2.85%
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%
PIMCO Variable Insurance Trust – PIMCO VIT Low Duration Portfolio – Administrative Shares
2006	0.10%	24,296		11.110721		269,946	4.19%	3.86%
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 Variable Insurance Trust – PIMCO VIT Real Return Portfolio – Administrative Shares
2006	0.10%	50,474		12.588282		635,381	4.26%	0.64%
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 Variable Insurance Trust – PIMCO VIT Total Return Portfolio – Administrative Shares
2006	0.10%	8,770		12.065231		105,812	4.42%	3.74%
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 Variable Contracts Trust – Pioneer High Yield VCT Portfolio – Class I
2006	0.10%	10,514		16.389248		172,317	5.53%	8.39%
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 – Micro Cap Portfolio
2006	0.10%	102,390		23.116715		2,366,920	0.17%	20.95%
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 Equity Income Portfolio – II
2006	0.10%	17,014		17.803262		302,905	1.35%	18.53%
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
T. Rowe Price Mid Cap Growth Fund – II
2006	0.10%	23,520		20.268825		476,723	0.00%	6.28%
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 Worldwide Insurance Trust – Worldwide Emerging Markets Fund – Initial Class
2006	0.10%	43,526		35.481161		1,544,353	0.56%	39.35%
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%
Van Eck Worldwide Insurance Trust – Worldwide Hard Assets Fund – Initial Class
2006	0.10%	20,452		38.333948		784,006	0.06%	24.37%
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%

(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***
Van Kampen – The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio – Class I
2006	0.10%	11,152	$	28.160613	$	314,047	10.28%	10.70%
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%
Van Kampen – The Universal Institutional Funds, Inc. – Mid Cap Growth Portfolio – Class I
2006	0.10%	21,636		9.302196		201,262	0.00%	9.17%
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%
Van Kampen – The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio – Class I
2006	0.10%	109,384		42.551820		4,654,488	1.07%	37.91%
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%
Wells Fargo Advantage Variable Trust FundsSM – Wells Fargo Advantage VT Opportunity FundSM
2006	0.10%	143,310		13.557898		1,942,982	0.00%	12.11%
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%
The BEST of AMERICA® America’s FUTURE Life SeriesSM Reduced Fee Tier (0.20%)
AIM Variable Insurance Funds – AIM V.I. Basic Value Fund – Series I
2006	0.20%	55,730		17.351728		967,012	0.42%	12.98%
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 Variable Insurance Funds – AIM V.I. Capital Appreciation Fund – Series I
2003	0.20%	288		13.259800		3,819	0.00%	35.09%
AIM Variable Insurance Funds – AIM V.I. Capital Development Fund – Series I Shares
2006	0.20%	73,000		19.442307		1,419,288	0.00%	16.29%
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 Variable Insurance Funds – AIM V.I. International Growth Fund – Series I
2006	0.20%	189,366		17.958795		3,400,785	0.97%	27.98%
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
AllianceBernstein Variable Products Series Fund, Inc. – Growth and Income Portfolio – Class A
2006	0.20%	44,760		18.052215		808,017	1.37%	17.05%
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%
AllianceBernstein Variable Products Series Fund, Inc. – International Value Portfolio – Class A
2006	0.20%	287,868		11.326575		3,260,558	0.57%	13.27%	05/01/06
American Century Variable Portfolios, Inc. – Income & Growth Fund – Class I
2006	0.20%	163,996		13.239121		2,171,163	1.85%	16.85%
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 Variable Portfolios, Inc. – International Fund – Class I
2006	0.20%	530,226		11.868885		6,293,191	1.58%	24.78%
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%

(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***
American Century Variable Portfolios, Inc. – Ultra® Fund – Class I
2006	0.20%	38,106	$	10.878509	$	414,536	0.00%	-3.47%
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 Variable Portfolios, Inc. – Value Fund – Class I
2006	0.20%	228,952		18.916906		4,331,063	1.41%	18.42%
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 – Baron Capital Asset Fund – Insurance Shares
2006	0.20%	216,684		18.770366		4,067,238	0.00%	15.29%
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 Investment Portfolios – Mid Cap Stock Index Portfolio – Initial Shares
2006	0.20%	15,656		17.549344		274,753	0.37%	7.53%
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 Investment Portfolios – Small Cap Stock Index Portfolio – Service Shares
2006	0.20%	155,436		15.666332		2,435,112	0.38%	14.18%
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 Socially Responsible Growth Fund, Inc. – Initial Shares, The
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 Stock Index Fund, Inc. – Initial Shares
2006	0.20%	3,580,384		11.623891		41,617,993	1.64%	15.27%
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 Variable Investment Fund – Appreciation Portfolio – Initial Shares
2006	0.20%	139,136		11.546593		1,606,547	1.53%	16.24%
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 Variable Investment Fund – International Value Portfolio – Initial Shares
2006	0.20%	644,284		21.009394		13,536,016	1.25%	22.35%
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 Insurance Series – Federated Quality Bond Fund II – Primary Shares
2006	0.20%	197,756		14.499637		2,867,390	5.17%	3.95%
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%

(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***
Fidelity® Variable Insurance Products Fund – Equity-Income Portfolio – Service Class
2006	0.20%	524,062	$	14.945916	$	7,832,587	3.15%	19.84%
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%
Fidelity® Variable Insurance Products Fund – Growth Portfolio – Service Class
2006	0.20%	1,027,390		8.794051		9,034,920	0.28%	6.52%
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® Variable Insurance Products Fund – High Income Portfolio – Service Class
2006	0.20%	10,750		14.592608		156,871	7.58%	10.96%
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® Variable Insurance Products Fund – Overseas Portfolio – Service Class
2006	0.20%	271,410		14.164421		3,844,366	0.84%	17.71%
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® Variable Insurance Products Fund II – Contrafund® Portfolio – Service Class
2006	0.20%	1,713,066		15.646354		26,803,237	1.12%	11.37%
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® Variable Insurance Products Fund II – Investment Grade Bond Portfolio – Service Class
2006	0.20%	64,972		11.265752		731,958	3.34%	4.09%
Fidelity® Variable Insurance Products Fund 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® Variable Insurance Products Fund 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 Variable Insurance Products Trust – Templeton Foreign Securities Fund – Class 2
2006	0.20%	109,726		19.718779		2,163,663	1.24%	21.20%
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 – Emerging Markets Fund – Class I
2006	0.20%	258,760		25.025345		6,475,558	0.71%	36.45%
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 GGVIT High Income Bond Fund – Class I
2006	0.20%	61,806		16.687538		1,031,390	7.41%	10.38%
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
2006	0.20%	72,832		13.568156		988,196	0.00%	2.50%
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%

(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***
Gartmore GVIT – Global Technology and Communications Fund – Class I
2006	0.20%	311,356	$	3.488016	$	1,086,015	0.00%	10.95%
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
2006	0.20%	826,566		13.468059		11,132,240	3.95%	3.14%
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
2006	0.20%	67,782		8.030198		544,303	0.05%	5.96%
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%
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 – Investor Destinations Aggressive Fund – Class II
2006	0.20%	211,872		15.647232		3,315,210	2.11%	16.64%
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%
Gartmore GVIT – Investor Destinations Conservative Fund – Class II
2006	0.20%	22,320		12.325531		275,106	3.23%	5.95%
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 – Investor Destinations Moderate Fund – Class II
2006	0.20%	206,458		13.960840		2,882,327	2.47%	11.13%
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 – Investor Destinations Moderately Aggressive Fund – Class II
2006	0.20%	38,278		14.976735		573,279	2.25%	14.31%
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 – Investor Destinations Moderately Conservative Fund – Class II
2006	0.20%	19,512		13.178536		257,140	2.84%	8.21%
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%
Gartmore GVIT – J.P. Morgan GVIT Balanced Fund: Class I
2006	0.20%	73,958		12.496956		924,250	2.25%	12.02%
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 – Mid Cap Index Fund – Class I
2006	0.20%	639,140		17.019619		10,877,919	1.14%	9.67%
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%

(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***
Gartmore GVIT – Money Market Fund – Class I
2006	0.20%	5,784	$	11.336122	$	65,568	4.43%	4.32%
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 – Money Market Fund – Class V
2006	0.20%	8,530,114		10.854633		92,591,257	4.63%	4.40%
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 – Nationwide® Fund – Class I
2006	0.20%	49,380		12.375964		611,125	1.09%	13.40%
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 – Small Cap Growth Fund – Class I
2006	0.20%	159,120		17.102157		2,721,295	0.00%	3.00%
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
2006	0.20%	348,296		22.077762		7,689,596	0.43%	17.06%
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
2006	0.20%	730,292		17.561515		12,825,034	0.10%	11.82%
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 GVIT 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 GGVIT Comstock 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 – Van Kampen GVIT Multi-Sector Bond Fund – Class I
2006	0.20%	57,084		14.600569		833,459	4.07%	4.63%
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 – 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%
Goldman Sachs Variable Insurance Trust – Goldman Sachs VIT Mid Cap Value Fund
2006	0.20%	1,042,500		20.769434		21,652,135	0.98%	15.93%
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 Aspen Series – Balanced Portfolio – Service Shares
2006	0.20%	63,792		14.581974		930,213	1.99%	10.19%
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%

(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***
Janus Aspen Series – Forty Portfolio – Service Shares
2006	0.20%	291,224	$	9.299521	$	2,708,244	0.14%	8.90%
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 Aspen Series – 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 Aspen Series – International Growth Portfolio – Service Shares
2006	0.20%	351,364		14.328921		5,034,667	1.89%	46.34%
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 Insurance Trust – JPMorgan Insurance Trust Diversified Mid Cap Growth Portfolio 1
2006	0.20%	43,296		17.711914		766,855	0.00%	11.17%
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 Insurance Trust – JPMorgan Insurance Trust Diversified Mid Cap Value Portfolio 1
2006	0.20%	6,476		19.328434		125,171	1.18%	16.49%
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%
Nationwide® GVIT Strategic Value Fund – Class I
2003	0.20%	9,101		10.583982		96,325	0.04%	38.53%
Neuberger Berman Advisers Management Trust – Fasciano Portfolio – Class S
2006	0.20%	11,666		15.129543		176,501	0.00%	5.04%
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%
Neuberger Berman Advisers Management Trust – 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 Advisers Management Trust – Mid Cap Growth Portfolio – I Class Shares
2006	0.20%	41,698		10.916267		455,187	0.00%	14.47%
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 Advisers Management Trust – Partners Portfolio® – Class I
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%
Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA – Non-Service Shares
2006	0.20%	1,641,104		10.362024		17,005,159	0.38%	7.73%
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 Variable Account Funds – Oppenheimer Global Securities Fund/VA – Non-Service Shares
2006	0.20%	578,604		14.873215		8,605,702	1.07%	17.46%
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 Variable Account Funds – Oppenheimer Main Street Fund®/VA – Non-Service Shares
2006	0.20%	184,798		12.449315		2,300,609	1.10%	14.80%
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%

(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***
Oppenheimer Variable Account Funds – Oppenheimer Mid Cap Fund/VA – Non-Service Shares
2006	0.20%	106,664	$	8.757520	$	934,112	0.00%	2.75%
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%
PIMCO Variable Insurance Trust – PIMCO VIT Low Duration Portfolio – Administrative Shares
2006	0.20%	1,775,448		11.062747		19,641,332	4.19%	3.75%
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 Variable Insurance Trust – PIMCO VIT Real Return Portfolio – Administrative Shares
2006	0.20%	672,656		12.533792		8,430,930	4.26%	0.54%
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 Variable Insurance Trust – PIMCO VIT Total Return Portfolio – Administrative Shares
2006	0.20%	3,889,630		12.013005		46,726,145	4.42%	3.64%
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 Variable Contracts Trust – Pioneer High Yield VCT Portfolio – Class I
2006	0.20%	467,554		16.318486		7,629,773	5.53%	8.29%
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 – Micro Cap
2006	0.20%	487,556		23.017122		11,222,136	0.17%	20.83%
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 Equity Income Portfolio – II
2006	0.20%	1,955,804		17.726578		34,669,712	1.35%	18.41%
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 Mid Cap Growth Fund – II
2006	0.20%	288,630		20.181467		5,824,977	0.00%	6.17%
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%
T. Rowe Price New America Growth Portfolio
2006	0.20%	301,726		12.072027		3,642,444	0.04%	7.12%
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
Van Eck Worldwide Insurance Trust – Worldwide Emerging Markets Fund – Initial Class
2006	0.20%	46,954		32.831467		1,541,569	0.56%	39.21%
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 Worldwide Insurance Trust – Worldwide Hard Assets Fund – Initial Class
2006	0.20%	59,788		32.689202		1,954,422	0.06%	24.24%
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 – The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio – Class I
2006	0.20%	74,878		21.483999		1,608,679	10.28%	10.59%
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)

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***
Van Kampen – The Universal Institutional Funds, Inc. – Mid Cap Growth Portfolio – Class I
2006	0.20%	26,838	$	9.240416	$	247,994	0.00%	9.06%
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 – The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio – Class I
2006	0.20%	324,820		34.585436		11,234,041	1.07%	37.77%
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 Advantage Variable Trust FundsSM – Wells Fargo Advantage VT Opportunity FundSM
2006	0.20%	199,708		13.467901		2,689,648	0.00%	12.00%
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® America’s FUTURE Life SeriesSM Reduced Fee Tier (0.25%)
AIM Variable Insurance Funds – AIM V.I. Basic Value Fund – Series I
2006	0.25%	70,154		17.314284		1,214,666	0.42%	12.92%
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 Variable Insurance Funds – AIM V.I. Capital Appreciation Fund – Series I
2003	0.25%	2,553		13.251011		33,830	0.00%	35.02%
AIM Variable Insurance Funds – AIM V.I. Capital Development Fund – Series I Shares
2006	0.25%	158,748		19.400361		3,079,769	0.00%	16.23%
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 Variable Insurance Funds – AIM V.I. International Growth Fund – Series I
2006	0.25%	447,740		17.934952		8,030,195	0.97%	27.91%
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
AllianceBernstein Variable Products Series Fund, Inc. – Growth and Income Portfolio – Class A
2006	0.25%	422,112		18.013258		7,603,612	1.37%	16.99%
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%
AllianceBernstein Variable Products Series Fund, Inc. – International Value Portfolio – Class A
2006	0.25%	343,264		11.322832		3,886,721	0.57%	13.23%	05/01/06
American Century Variable Portfolios, Inc. – Income & Growth Fund – Class I
2006	0.25%	284,862		13.198939		3,759,876	1.85%	16.80%
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 Variable Portfolios, Inc. – International Fund – Class I
2006	0.25%	987,980		11.832909		11,690,677	1.58%	24.71%
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 Variable Portfolios, Inc. – Ultra® Fund – Class I
2006	0.25%	24,306		10.853176		263,797	0.00%	-3.52%
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%

(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***
American Century Variable Portfolios, Inc. – Value Fund – Class I
2006	0.25%	552,364	$	18.859509	$	10,417,314	1.41%	18.36%
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 Variable Portfolios, Inc. – VistaSM Fund – Class I
2006	0.25%	4,932		12.444525		61,376	0.00%	8.74%
2005	0.25%	248		11.444645		2,838	0.00%	14.45%	05/02/05
Baron Capital Funds Trust – Baron Capital Asset Fund – Insurance Shares
2006	0.25%	186,980		18.729880		3,502,113	0.00%	15.23%
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%
BlackRock International Index Portfolio – Class II
2006	0.25%	82,570		14.583459		1,204,156	5.83%	25.37%
2005	0.25%	732		11.632654		8,515	1.76%	16.33%	05/02/05
BlackRock Large Cap Core V.I. Fund – Class II
2006	0.25%	131,296		13.236885		1,737,950	0.79%	14.33%
2005	0.25%	101,208		11.577932		1,171,779	0.74%	15.78%	05/02/05
Calvert Variable Series, Inc. – Social Equity Portfolio
2006	0.25%	7,002		15.339931		107,410	0.00%	9.78%
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%
Credit Suisse Trust – Global Small Cap Portfolio
2006	0.25%	9,586		10.910325		104,586	0.00%	12.92%
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
2006	0.25%	7,190		13.400060		96,346	1.01%	18.36%
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
2006	0.25%	5,326		14.706419		78,326	0.89%	19.05%
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 Investment Portfolios – Mid Cap Stock Index Portfolio – Initial Shares
2006	0.25%	38,318		17.511529		671,007	0.37%	7.48%
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 Investment Portfolios – Small Cap Stock Index Portfolio – Service Shares
2006	0.25%	247,338		15.629868		3,865,860	0.38%	14.13%
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 Socially Responsible Growth Fund, Inc. – Initial Shares, The
2006	0.25%	91,596		8.215346		752,493	0.11%	8.93%
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%

(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***
Dreyfus Stock Index Fund, Inc. – Initial Shares
2006	0.25%	8,834,012	$	11.588607	$	102,373,893	1.64%	15.21%
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 Variable Investment Fund – Appreciation Portfolio – Initial Shares
2006	0.25%	752,594		11.511538		8,663,514	1.53%	16.19%
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 Variable Investment Fund – International Value Portfolio – Initial Shares
2006	0.25%	931,538		20.964071		19,528,829	1.25%	22.29%
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%
DWS Variable Series II – DWS Dreman High Return Equity VIP – Class B
2006	0.25%	15,180		11.257266		170,885	0.00%	12.57%	05/01/06
Federated Insurance Series – Federated Quality Bond Fund II – Primary Shares
2006	0.25%	1,173,262		14.444216		16,946,850	5.17%	3.89%
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%
Fidelity® Variable Insurance Products Fund – Equity-Income Portfolio – Service Class
2006	0.25%	1,907,206		14.900594		28,418,502	3.15%	19.78%
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® Variable Insurance Products Fund – Growth Portfolio – Service Class
2006	0.25%	2,159,692		8.767341		18,934,756	0.28%	6.47%
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® Variable Insurance Products Fund – High Income Portfolio – Service Class
2006	0.25%	195,198		14.548271		2,839,793	7.58%	10.90%
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%
Fidelity® Variable Insurance Products Fund – Overseas Portfolio – Service Class
2006	0.25%	1,070,198		14.121395		15,112,689	0.84%	17.65%
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® Variable Insurance Products Fund II – Contrafund® Portfolio – Service Class
2006	0.25%	2,614,782		15.598891		40,787,699	1.12%	11.31%
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® Variable Insurance Products Fund II – Investment Grade Bond Portfolio – Service Class
2006	0.25%	49,006		11.245144		551,080	3.34%	4.04%
2005	0.25%	33,064		10.808463		357,371	2.69%	1.83%

(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***
Fidelity® Variable Insurance Products Fund III – Growth Opportunities Portfolio – Service Class
2006	0.25%	127,338	$	10.554406	$	1,343,977	0.69%	5.04%
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® Variable Insurance Products Fund III – Mid Cap Portfolio – Service Class
2006	0.25%	172,826		23.176101		4,005,433	0.23%	12.31%
2005	0.25%	159,618		20.635857		3,293,854	0.00%	17.91%
Fidelity® Variable Insurance Products Fund III – Value Strategies Portfolio – Service Class
2006	0.25%	2,506		15.908520		39,867	0.49%	15.91%
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 Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund – Class 2
2006	0.25%	208,584		13.246445		2,762,996	0.76%	16.69%
2005	0.25%	11,480		11.351855		130,319	0.00%	13.52%	05/02/05
Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund – Class 2
2006	0.25%	359,658		19.676237		7,076,716	1.24%	21.14%
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 – Emerging Markets Fund – Class I
2006	0.25%	300,448		24.947405		7,495,398	0.71%	36.38%
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 GGVIT High Income Bond Fund – Class I
2006	0.25%	370,802		16.636894		6,168,994	7.41%	10.33%
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
2006	0.25%	30,252		19.600661		592,959	1.89%	20.02%
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
2006	0.25%	29,942		13.536569		405,312	0.00%	2.45%
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
2006	0.25%	446,826		3.477132		1,553,673	0.00%	10.89%
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
2006	0.25%	20,796		20.252066		421,162	2.84%	37.22%
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%
Gartmore GVIT – Government Bond Fund – Class I
2006	0.25%	3,008,954		13.427221		40,401,890	3.95%	3.08%
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%

(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***
Gartmore GVIT – Growth Fund: Class I
2006	0.25%	45,366	$	8.005797	$	363,191	0.05%	5.90%
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
2006	0.25%	55,980		13.222655		740,204	0.84%	32.63%
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 – Investor Destinations Aggressive Fund – Class II
2006	0.25%	77,654		15.608708		1,212,079	2.11%	16.58%
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 – Investor Destinations Conservative Fund – Class II
2006	0.25%	287,996		12.295233		3,540,978	3.23%	5.90%
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 – Investor Destinations Moderate Fund – Class II
2006	0.25%	161,088		13.926464		2,243,386	2.47%	11.08%
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 – Investor Destinations Moderately Aggressive Fund – Class II
2006	0.25%	84,106		14.939913		1,256,536	2.25%	14.26%
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 – Investor Destinations Moderately Conservative Fund – Class II
2006	0.25%	105,542		13.146115		1,387,467	2.84%	8.15%
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%
Gartmore GVIT – J.P. Morgan GVIT Balanced Fund: Class I
2006	0.25%	257,054		12.459031		3,202,644	2.25%	11.97%
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
2006	0.25%	154,712		9.560904		1,479,187	0.00%	9.63%
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 – Mid Cap Index Fund – Class I
2006	0.25%	993,900		16.967969		16,864,464	1.14%	9.62%
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 – Money Market Fund – Class I
2006	0.25%	906,990		11.301640		10,250,474	4.43%	4.27%
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%

(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***
Gartmore GVIT – Money Market Fund – Class V
2006	0.25%	11,262,860	$	10.831867	$	121,997,802	4.63%	4.35%
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%	10/21/02
Gartmore GVIT – Nationwide® Fund – Class I
2006	0.25%	236,736		12.338411		2,920,946	1.09%	13.34%
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
2006	0.25%	2,392		15.929628		38,104	0.70%	15.76%
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 – Small Cap Growth Fund – Class I
2006	0.25%	174,802		17.036832		2,978,072	0.00%	2.95%
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
2006	0.25%	667,586		22.010798		14,694,101	0.43%	17.00%
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
2006	0.25%	1,848,548		17.508253		32,364,846	0.10%	11.76%
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 GVIT Growth Focus Fund – Class I
2003	0.25%	23,948		3.309832		79,264	0.00%	50.59%
Gartmore GVIT – U.S. Growth Leaders Fund – Class I
2006	0.25%	93,502		15.523663		1,451,494	0.27%	-0.54%
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 GGVIT Comstock Value Fund: Class I
2006	0.25%	36,988		12.373114		457,657	1.73%	15.62%
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 – Van Kampen GVIT Multi-Sector Bond Fund – Class I
2006	0.25%	450,402		14.556279		6,556,177	4.07%	4.58%
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 – Worldwide Leaders Fund – Class I
2006	0.25%	13,250		14.557271		192,884	0.85%	25.57%
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%

(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***
Goldman Sachs Variable Insurance Trust – Goldman Sachs VIT Mid Cap Value Fund
2006	0.25%	1,231,810	$	20.724643	$	25,528,822	0.98%	15.87%
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 Aspen Series – Balanced Portfolio – Service Shares
2006	0.25%	83,320		14.550491		1,212,347	1.99%	10.14%
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 Aspen Series – Forty Portfolio – Service Shares
2006	0.25%	1,255,440		9.267372		11,634,630	0.14%	8.84%
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%
Janus Aspen Series – Global Technology Portfolio – Service Shares
2006	0.25%	770,748		4.244167		3,271,183	0.00%	7.56%
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 Aspen Series – International Growth Portfolio – Service Shares
2006	0.25%	1,109,576		14.279422		15,844,104	1.89%	46.26%
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 Insurance Trust – JPMorgan Insurance Trust Diversified Mid Cap Growth Portfolio 1
2006	0.25%	62,906		17.674125		1,111,809	0.00%	11.11%
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 Insurance Trust – JPMorgan Insurance Trust Diversified Mid Cap Value Portfolio 1
2006	0.25%	730		19.287150		14,080	1.18%	16.43%
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 – Class VC
2006	0.25%	45,876		12.617407		578,836	0.89%	11.95%
2005	0.25%	19,122		11.270434		215,513	0.52%	12.70%	05/02/05
Nationwide® GVIT 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%
Neuberger Berman Advisers Management Trust – Fasciano Portfolio – Class S
2006	0.25%	18,450		15.096902		278,538	0.00%	4.99%
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%
Neuberger Berman Advisers Management Trust – Guardian Portfolio – I Class Shares
2006	0.25%	194,222		13.804932		2,681,222	0.70%	13.09%
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%

(Continued)

97

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 Advisers Management Trust – Mid Cap Growth Portfolio – I Class Shares
2006	0.25%	391,016	$	10.883119	$	4,255,474	0.00%	14.41%
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 Advisers Management Trust – Partners Portfolio® – Class I
2006	0.25%	70,676		16.371496		1,157,072	0.68%	11.96%
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 Advisers Management Trust – Regency Portfolio – Class I
2006	0.25%	6,524		10.257708		66,921	0.44%	2.58%	05/01/06
Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA – Non-Service Shares
2006	0.25%	3,188,414		10.330569		32,938,131	0.38%	7.68%
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 Variable Account Funds – Oppenheimer Global Securities Fund/VA – Non-Service Shares
2006	0.25%	1,608,848		14.823774		23,849,199	1.07%	17.40%
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%
Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA – Non-Service Shares
2006	0.25%	370,160		12.411511		4,594,245	1.10%	14.74%
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%
Oppenheimer Variable Account Funds – Oppenheimer Mid Cap Fund/VA – Non-Service Shares
2006	0.25%	1,386,376		8.730923		12,104,342	0.00%	2.70%
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%
PIMCO Variable Insurance Trust – PIMCO VIT All Asset Portfolio – Administrative Shares
2006	0.25%	121,412		12.399544		1,505,453	4.03%	4.40%
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 Variable Insurance Trust – PIMCO VIT Low Duration Portfolio – Administrative Shares
2006	0.25%	875,682		11.038824		9,666,499	4.19%	3.70%
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 Variable Insurance Trust – PIMCO VIT Real Return Portfolio – Administrative Shares
2006	0.25%	1,287,852		12.506613		16,106,667	4.26%	0.49%
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 Variable Insurance Trust – PIMCO VIT Total Return Portfolio – Administrative Shares
2006	0.25%	3,326,500		11.986960		39,874,622	4.42%	3.59%
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

(Continued)

98

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***
Pioneer Variable Contracts Trust – Pioneer High Yield VCT Portfolio – Class I
2006	0.25%	82,444	$	16.283186	$	1,342,451	5.53%	8.23%
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%	09/30/02
Royce Capital Fund – Micro Cap
2006	0.25%	779,248		22.967474		17,897,358	0.17%	20.77%
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 Equity Income Portfolio – II
2006	0.25%	1,540,034		17.688346		27,240,654	1.35%	18.35%
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 Mid Cap Growth Fund – II
2006	0.25%	560,134		20.137940		11,279,945	0.00%	6.12%
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%
T. Rowe Price New America Growth Portfolio
2006	0.25%	86,392		12.056017		1,041,543	0.04%	7.06%
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
Van Eck Worldwide Insurance Trust – Worldwide Emerging Markets Fund – Initial Class
2006	0.25%	66,446		32.731758		2,174,894	0.56%	39.14%
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 Worldwide Insurance Trust – Worldwide Hard Assets Fund – Initial Class
2006	0.25%	153,486		32.590053		5,002,117	0.06%	24.18%
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 – The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio – Class I
2006	0.25%	49,984		21.418803		1,070,597	10.28%	10.53%
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%
Van Kampen – The Universal Institutional Funds, Inc. – Mid Cap Growth Portfolio – Class I
2006	0.25%	265,862		9.209696		2,448,508	0.00%	9.00%
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 – The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio – Class I
2006	0.25%	709,670		34.480507		24,469,781	1.07%	37.70%
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%
W&R Target Funds, Inc. – Real Estate Securities Portfolio
2006	0.25%	594		14.907103		8,855	1.58%	29.76%

(Continued)

99

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***
Wells Fargo Advantage Variable Trust FundsSM – Wells Fargo Advantage VT Opportunity FundSM
2006	0.25%	454,354	$	13.423088	$	6,098,834	0.00%	11.94%
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® America’s FUTURE Life SeriesSM Reduced Fee Tier (0.40%)
AIM Variable Insurance Funds – AIM V.I. Basic Value Fund – Series I
2006	0.40%	30,412		17.202471		523,162	0.42%	12.75%
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 Variable Insurance Funds – AIM V.I. Capital Appreciation Fund – Series I
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 Variable Insurance Funds – AIM V.I. Capital Development Fund – Series I Shares
2006	0.40%	137,464		19.275099		2,649,632	0.00%	16.06%
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 Variable Insurance Funds – AIM V.I. International Growth Fund – Series I
2006	0.40%	461,146		17.863705		8,237,776	0.97%	27.72%
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
AllianceBernstein Variable Products Series Fund, Inc. – Growth and Income Portfolio – Class A
2006	0.40%	395,572		17.896979		7,079,544	1.37%	16.82%
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
AllianceBernstein Variable Products Series Fund, Inc. – International Value Portfolio – Class A
2006	0.40%	453,968		11.311574		5,135,093	0.57%	13.12%	05/01/06
American Century Variable Portfolios, Inc. – Income & Growth Fund – Class I
2006	0.40%	280		14.724248		4,123	1.85%	16.62%
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%
American Century Variable Portfolios, Inc. – International Fund – Class I
2006	0.40%	146,198		14.750278		2,156,461	1.58%	24.53%
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%
American Century Variable Portfolios, Inc. – Ultra® Fund – Class I
2006	0.40%	15,632		10.777532		168,474	0.00%	-3.66%
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 Variable Portfolios, Inc. – Value Fund – Class I
2006	0.40%	250,854		19.265641		4,832,863	1.41%	18.18%
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%
American Century Variable Portfolios, Inc. – VistaSM Fund – Class I
2006	0.40%	9,374		12.413582		116,365	0.00%	8.57%
2005	0.40%	596		11.433293		6,814	0.00%	14.33%	05/02/05

(Continued)

100

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***
Baron Capital Funds Trust – Baron Capital Asset Fund – Insurance Shares
2006	0.40%	206,184	$	18.608964	$	3,836,871	0.00%	15.06%
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
BlackRock International Index Portfolio – Class II
2006	0.40%	17,946		14.547195		261,064	5.83%	25.18%
2005	0.40%	220		11.621096		2,557	1.76%	16.21%	05/02/05
BlackRock Large Cap Core V.I. Fund – Class II
2006	0.40%	17,728		13.203975		234,080	0.79%	14.16%
2005	0.40%	73,626		11.566434		851,590	0.74%	15.66%	05/02/05
Calvert Variable Series, Inc. – Social Equity Portfolio
2006	0.40%	512		15.240875		7,803	0.00%	9.62%
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%
Credit Suisse Trust – International Focus Portfolio
2002	0.40%	32,357		6.196425		200,498	0.00%	-20.22%
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%
Dreyfus Investment Portfolios – Mid Cap Stock Index Portfolio – Initial Shares
2006	0.40%	6,714		17.398454		116,813	0.37%	7.32%
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 Investment Portfolios – Small Cap Stock Index Portfolio – Service Shares
2006	0.40%	418,714		15.520951		6,498,839	0.38%	13.96%
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 Socially Responsible Growth Fund, Inc. – Initial Shares, The
2006	0.40%	90		10.406467		937	0.11%	8.77%
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%
Dreyfus Stock Index Fund, Inc. – Initial Shares
2006	0.40%	4,780,522		13.685152		65,422,170	1.64%	15.04%
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%
Dreyfus Variable Investment Fund – Appreciation Portfolio – Initial Shares
2006	0.40%	265,322		13.820624		3,666,916	1.53%	16.01%
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%
Dreyfus Variable Investment Fund – International Value Portfolio – Initial Shares
2006	0.40%	293,760		20.828757		6,118,656	1.25%	22.11%
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)

101

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 Insurance Series – Federated Quality Bond Fund II – Primary Shares
2006	0.40%	68,922	$	14.279265	$	984,156	5.17%	3.74%
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%
Fidelity® Variable Insurance Products Fund – Equity-Income Portfolio – Service Class
2006	0.40%	520,282		16.022504		8,336,220	3.15%	19.60%
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%
Fidelity® Variable Insurance Products Fund – Growth Portfolio – Service Class
2006	0.40%	245,682		12.653389		3,108,710	0.28%	6.31%
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%
Fidelity® Variable Insurance Products Fund – High Income Portfolio – Service Class
2006	0.40%	244		10.547905		2,574	7.58%	10.73%
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%
Fidelity® Variable Insurance Products Fund – Overseas Portfolio – Service Class
2006	0.40%	581,496		15.169405		8,820,948	0.84%	17.48%
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%
Fidelity® Variable Insurance Products Fund II – Contrafund® Portfolio – Service Class
2006	0.40%	967,474		19.486792		18,852,965	1.12%	11.15%
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%
Fidelity® Variable Insurance Products Fund II – Investment Grade Bond Portfolio – Service Class
2006	0.40%	880		11.183530		9,842	3.34%	3.88%
2005	0.40%	372		10.765329		4,005	2.69%	1.67%
Fidelity® Variable Insurance Products Fund 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%
Fidelity® Variable Insurance Products Fund III – Mid Cap Portfolio – Service Class
2006	0.40%	35,172		23.049221		810,687	0.23%	12.14%
2005	0.40%	3,976		20.553596		81,721	0.00%	17.73%
Fidelity® Variable Insurance Products Fund III – Value Strategies Portfolio – Service Class
2006	0.40%	14		15.797724		221	0.49%	15.73%
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 Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund – Class 2
2006	0.40%	62,174		13.213518		821,537	0.76%	16.52%
2005	0.40%	199,332		11.340582		2,260,541	0.00%	13.41%	05/02/05

(Continued)

102

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***
Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund – Class 2
2006	0.40%	494,684	$	19.549201	$	9,670,677	1.24%	20.96%
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
Gartmore GVIT – Emerging Markets Fund – Class I
2006	0.40%	316,790		24.714946		7,829,448	0.71%	36.17%
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%
Gartmore GVIT – Federated GGVIT High Income Bond Fund – Class I
2006	0.40%	230,582		15.107048		3,483,413	7.41%	10.16%
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%
Gartmore GVIT – Global Financial Services Fund – Class I
2006	0.40%	5,096		19.464132		99,189	1.89%	19.84%
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
2006	0.40%	18,258		13.442227		245,428	0.00%	2.30%
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
2006	0.40%	238,650		3.444715		822,081	0.00%	10.73%
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%
Gartmore GVIT – Global Utilities Fund – Class I
2006	0.40%	2,542		20.110980		51,122	2.84%	37.01%
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
2006	0.40%	445,662		15.186518		6,768,054	3.95%	2.93%
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%
Gartmore GVIT – Growth Fund: Class I
2006	0.40%	4		6.904680		28	0.05%	5.75%
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%
Gartmore GVIT – International Growth Fund – Class I
2006	0.40%	416		13.099372		5,449	0.84%	32.44%
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%

(Continued)

103

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 – Investor Destinations Aggressive Fund – Class II
2006	0.40%	171,634	$	15.493861	$	2,659,273	2.11%	16.40%
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 – Investor Destinations Conservative Fund – Class II
2006	0.40%	92,396		12.204705		1,127,666	3.23%	5.74%
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 – Investor Destinations Moderate Fund – Class II
2006	0.40%	490,632		13.823999		6,782,496	2.47%	10.91%
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 – Investor Destinations Moderately Aggressive Fund – Class II
2006	0.40%	268,984		14.829966		3,989,024	2.25%	14.08%
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 – Investor Destinations Moderately Conservative Fund – Class II
2006	0.40%	820,496		13.049356		10,706,944	2.84%	7.99%
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
Gartmore GVIT – J.P. Morgan GVIT Balanced Fund: Class I
2006	0.40%	608		12.170646		7,400	2.25%	11.80%
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%
Gartmore GVIT – Mid Cap Growth Fund – Class I
2006	0.40%	94		13.633719		1,282	0.00%	9.47%
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%
Gartmore GVIT – Mid Cap Index Fund – Class I
2006	0.40%	660,842		21.263963		14,052,120	1.14%	9.45%
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%
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%
Gartmore GVIT – Money Market Fund – Class V
2006	0.40%	4,048,114		10.763797		43,573,077	4.63%	4.20%
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

(Continued)

104

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® Fund – Class I
2006	0.40%	31,470	$	12.805324	$	402,984	1.09%	13.18%
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%
Gartmore GVIT – Nationwide® Leaders Fund – Class I
2006	0.40%	54		15.818643		854	0.70%	15.58%
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 – Small Cap Growth Fund – Class I
2006	0.40%	106,988		16.842189		1,801,912	0.00%	2.80%
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%
Gartmore GVIT – Small Cap Value Fund – Class I
2006	0.40%	104,786		24.553275		2,572,839	0.43%	16.83%
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%
Gartmore GVIT – Small Company Fund – Class I
2006	0.40%	428,830		22.410227		9,610,178	0.10%	11.59%
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%
Gartmore GVIT – Turner GVIT 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%
Gartmore GVIT – U.S. Growth Leaders Fund – Class I
2006	0.40%	118		15.415524		1,819	0.27%	-0.69%
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%
Gartmore GVIT – Van Kampen GGVIT Comstock Value Fund: Class I
2006	0.40%	2		13.317925		27	1.73%	15.44%
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%
Gartmore GVIT – Van Kampen GVIT Multi-Sector Bond Fund – Class I
2006	0.40%	34,566		14.839152		512,930	4.07%	4.42%
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%
Gartmore GVIT – Worldwide Leaders Fund – Class I
2006	0.40%	24		15.509710		372	0.85%	25.38%
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%

(Continued)

105

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***
Goldman Sachs Variable Insurance Trust – Goldman Sachs VIT Mid Cap Value Fund
2006	0.40%	1,066,122	$	20.590810	$	21,952,316	0.98%	15.70%
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 Aspen Series – Balanced Portfolio – Service Shares
2006	0.40%	165,700		14.456527		2,395,447	1.99%	9.98%
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
Janus Aspen Series – Forty Portfolio – Service Shares
2006	0.40%	228,352		9.171618		2,094,357	0.14%	8.68%
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%
Janus Aspen Series – Global Technology Portfolio – Service Shares
2006	0.40%	52		4.200294		218	0.00%	7.40%
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%
Janus Aspen Series – International Growth Portfolio – Service Shares
2006	0.40%	43,784		14.131910		618,752	1.89%	46.05%
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%
JPMorgan Insurance Trust – JPMorgan Insurance Trust Diversified Mid Cap Growth Portfolio 1
2006	0.40%	83,526		17.561058		1,466,805	0.00%	10.95%
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 Insurance Trust – JPMorgan Insurance Trust Diversified Mid Cap Value Portfolio 1
2006	0.40%	2,838		19.163821		54,387	1.18%	16.26%
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 – Class VC
2006	0.40%	7,064		12.586028		88,908	0.89%	11.78%
2005	0.40%	1,690		11.259238		19,028	0.52%	12.59%	05/02/05
Nationwide® GVIT 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%
Neuberger Berman Advisers Management Trust – Fasciano Portfolio – Class S
2006	0.40%	7,818		14.999423		117,265	0.00%	4.83%
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
Neuberger Berman Advisers Management Trust – Guardian Portfolio – I Class Shares
2006	0.40%	74		14.282531		1,057	0.70%	12.93%
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%

(Continued)

106

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 Advisers Management Trust – Mid Cap Growth Portfolio – I Class Shares
2006	0.40%	97,186	$	16.121456	$	1,566,780	0.00%	14.24%
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%
Neuberger Berman Advisers Management Trust – Partners Portfolio® – Class I
2006	0.40%	414		15.348160		6,354	0.68%	11.79%
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%
Neuberger Berman Advisers Management Trust – Regency Portfolio – Class I
2006	0.40%	34,570		10.247505		354,256	0.44%	2.48%	05/01/06
Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA – Non-Service Shares
2006	0.40%	1,040,592		14.821276		15,422,901	0.38%	7.52%
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%
Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA – Non-Service Shares
2006	0.40%	898,758		14.676391		13,190,524	1.07%	17.22%
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%
Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA – Non-Service Shares
2006	0.40%	3,524		11.856561		41,783	1.10%	14.57%
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%
Oppenheimer Variable Account Funds – Oppenheimer Mid Cap Fund/VA – Non-Service Shares
2006	0.40%	986		13.200215		13,015	0.00%	2.55%
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%
PIMCO Variable Insurance Trust – PIMCO VIT All Asset Portfolio – Administrative Shares
2006	0.40%	2,542		12.350260		31,394	4.03%	4.24%
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 Variable Insurance Trust – PIMCO VIT Low Duration Portfolio – Administrative Shares
2006	0.40%	995,170		10.967285		10,914,313	4.19%	3.55%
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 Variable Insurance Trust – PIMCO VIT Real Return Portfolio – Administrative Shares
2006	0.40%	1,442,470		12.425357		17,923,205	4.26%	0.34%
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 Variable Insurance Trust – PIMCO VIT Total Return Portfolio – Administrative Shares
2006	0.40%	3,150,134		11.909077		37,515,188	4.42%	3.43%
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

(Continued)

107

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***
Pioneer Variable Contracts Trust – Pioneer High Yield VCT Portfolio – Class I
2006	0.40%	280,054	$	16.177661	$	4,530,619	5.53%	8.07%
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 – Micro Cap
2006	0.40%	767,354		22.819241		17,510,436	0.17%	20.59%
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 Equity Income Portfolio – II
2006	0.40%	1,391,756		17.574134		24,458,906	1.35%	18.18%
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
T. Rowe Price Mid Cap Growth Fund – II
2006	0.40%	256,586		20.007898		5,133,747	0.00%	5.96%
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
T. Rowe Price New America Growth Portfolio
2006	0.40%	551,676		12.008095		6,624,578	0.04%	6.90%
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
Van Eck Worldwide Insurance Trust – 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%
Van Eck Worldwide Insurance Trust – 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%
Van Kampen – The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio – Class I
2006	0.40%	81,282		19.875581		1,615,527	10.28%	10.37%
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%
Van Kampen – The Universal Institutional Funds, Inc. – Mid Cap Growth Portfolio – Class I
2006	0.40%	44,880		9.118070		409,219	0.00%	8.84%
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%
Van Kampen – The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio – Class I
2006	0.40%	290,660		35.340571		10,272,090	1.07%	37.50%
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%
W&R Target Funds, Inc. – Growth Portfolio
2006	0.40%	1,882		12.243877		23,043	0.00%	4.62%
W&R Target Funds, Inc. – Real Estate Securities Portfolio
2006	0.40%	2,546		14.870055		37,859	1.58%	29.57%

(Continued)

108

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***
Wells Fargo Advantage Variable Trust FundsSM – Wells Fargo Advantage VT Opportunity FundSM
2006	0.40%	126	$	13.289662	$	1,674	0.00%	11.77%
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%
Contract Owners’ Equity Total By Year
2006					$	4,464,442,368
2005					$	3,947,899,004
2004					$	3,677,896,359
2003					$	3,032,894,218
2002					$	2,276,440,710

*	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.

109

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 Accounts”)) as of December 31, 2006, 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 Accounts’ 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 audits 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, 2006, 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 Accounts as of December 31, 2006, and the results of their 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.

/s/ KPMG LLP

Columbus, Ohio

March 9, 2007

110

NATIONWIDE LIFE INSURANCE COMPANY	PRSRT STD
HOME OFFICE: ONE NATIONWIDE PLAZA • COLUMBUS, OHIO 43215-2220	U.S. POSTAGE
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	NATIONWIDE

Nationwide^® is a registered federal service mark of Nationwide Mutual Insurance Company