Nationwide^® VLI

Separate Account-2

December 31, 2005

2005    

Annual Report    

Nationwide Life Insurance Company

Home Office: Columbus, Ohio

VLOB–12–12/05

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2005

Assets:
Investments at fair value:
AIM VIF – Basic Value Fund – Series I Shares (AIMBValue) 64,780 shares (cost $723,242)	$	801,324
AIM VIF – Capital Appreciation Fund – Series I Shares (AIMCapAp) 3,427 shares (cost $80,818)		84,581
AIM VIF – Capital Development Fund – Series I Shares (AIMCapDev) 15,136 shares (cost $209,244)		243,534
Alliance VPSF – AllianceBernstein Growth & Income Portfolio – Class A (AlVPGrIncA) 37,421 shares (cost $866,399)		931,034
Alliance VPSF – AllianceBernstein Small/Mid Cap Value Portfolio – Class A (AlVPSmCapVA) 59,900 shares (cost $947,285)		1,021,892
American Century VP – Balanced Fund – Class I (ACVPBal) 719,280 shares (cost $4,641,106)		5,394,600
American Century VP – Capital Appreciation Fund – Class I (ACVPCapAp) 1,491,734 shares (cost $11,650,607)		13,947,712
American Century VP – Income & Growth Fund – Class I (ACVPIncGr) 484,431 shares (cost $2,849,359)		3,638,078
American Century VP – International Fund – Class I (ACVPInt) 1,213,150 shares (cost $7,008,660)		9,984,223
American Century VP – Mid Cap Value Fund – Class I (ACVPMidCpVal) 8,838 shares (cost $103,836)		103,400
American Century VP – Ultra® Fund – Class I (ACVPUltra) 74,268 shares (cost $741,915)		770,906
American Century VP – Value Fund – Class I (ACVPVal) 1,645,193 shares (cost $11,873,175)		13,490,584
American Century VP – VistaSM Fund – Class I (ACVPVista) 2,004 shares (cost $29,003)		29,040
American Century VP II – Inflation Protection Fund – Class II (ACVPInflaPro) 114,478 shares (cost $1,192,541)		1,174,540
American Century VP III – International Fund – Class III (ACVPInt3) 188,801 shares (cost $1,406,712)		1,553,835
Credit Suisse Trust – Global Small Cap Portfolio (CSGPVen) 73,987 shares (cost $791,291)		958,135
Credit Suisse Trust – International Focus Portfolio (CSIntFoc) 611,185 shares (cost $5,288,366)		7,150,861
Credit Suisse Trust – Small Cap Growth Portfolio (CSSmCapGr) 857,429 shares (cost $9,737,404)		12,767,112
Dreyfus IP – Small Cap Stock Index Portfolio – Service Class (DrySmCapIxS) 122,082 shares (cost $1,796,541)		2,035,114
Dreyfus Investor, Inc. – Dreyfus Stock Index Fund, Inc. – Initial Shares (DryStkIx) 2,386,642 shares (cost $73,887,888)		75,942,933
Dreyfus Investor, Inc. – The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro) 337,160 shares (cost $11,093,233)		8,793,128
Dreyfus VIF – Appreciation Portfolio – Initial Shares (DryVIFApp) 155,890 shares (cost $4,858,060)		5,785,092
Dreyfus VIF – Developing Leaders Portfolio – Initial Shares (DryVIFDevLd) 9,954 shares (cost $394,926)		437,574
Dreyfus VIF – Growth and Income Portfolio – Initial Shares (DryVIFGrInc) 105,875 shares (cost $2,071,060)		2,310,188

(Continued)

2

NATIONWIDE VLI SEPARATE ACCOUNT-2

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

Federated IS – American Leaders Fund II – Primary Shares (FedAmLead) 8,347 shares (cost $162,754)	$	178,458
Federated IS – Capital Appreciation Fund II – Primary Shares (FedCapAp) 4,322 shares (cost $23,353)		25,412
Federated IS – Quality Bond Fund II – Primary Shares (FedQualBd) 103,458 shares (cost $1,203,176)		1,169,079
Fidelity® VIP – Equity-Income Portfolio: Initial Class (FidVIPEI) 2,881,991 shares (cost $66,908,189)		73,461,953
Fidelity® VIP – Growth Portfolio: Initial Class (FidVIPGr) 2,519,260 shares (cost $109,799,429)		84,899,049
Fidelity® VIP – High Income Portfolio: Initial Class (FidVIPHI) 3,099,775 shares (cost $20,374,134)		19,125,615
Fidelity® VIP – Overseas Portfolio: Initial Class (FidVIPOv) 836,536 shares (cost $10,232,743)		17,241,008
Fidelity® VIP – Overseas Portfolio: Service Class R (FidVIPOvSR) 129,912 shares (cost $2,286,428)		2,663,190
Fidelity® VIP II – Asset Manager Portfolio: Initial Class (FidVIPAM) 1,421,619 shares (cost $21,980,638)		21,381,144
Fidelity® VIP II – Contrafund® Portfolio: Initial Class (FidVIPCon) 2,204,886 shares (cost $53,057,883)		68,417,612
Fidelity® VIP II – Investment Grade Bond Portfolio: Service Class (FidVIPIGBdS) 215,560 shares (cost $2,723,515)		2,733,304
Fidelity® VIP III – Growth Opportunities Portfolio: Initial Class (FidVIPGrOp) 240,276 shares (cost $3,457,577)		4,166,391
Fidelity® VIP III – Mid Cap Portfolio: Service Class (FidVIPMCapS) 228,007 shares (cost $6,557,395)		7,968,840
Fidelity® VIP III – Value Strategies Portfolio: Service Class (FidVIPVaIS) 84,102 shares (cost $1,134,209)		1,174,908
Fidelity® VIP IV – Natural Resources Portfolio: Service Class 2 (FidVIPCon2) 97,762 shares (cost $1,796,520)		1,846,715
Fidelity® VIP FF – Freedom Fund 2010 Portfolio: Service Class (FidFF2010) 5,921 shares (cost $62,453)		63,773
Fidelity® VIP FF – Freedom Fund 2020 Portfolio: Service Class (FidFF2020) 23,922 shares (cost $251,378)		264,821
Fidelity® VIP FF – Freedom Fund 2030 Portfolio: Service Class (FidFF2030) 3,815 shares (cost $42,433)		42,995
Franklin Templeton VIP – Franklin Rising Dividends Securities Fund – Class I (FrVIPRisDiv) 180,589 shares (cost $3,071,357)		3,270,461
Franklin Templeton VIP – Franklin Small Cap Value Securities Fund – Class I (FTVIPSmCpVal) 177,247 shares (cost $2,742,037)		3,016,736
Franklin Templeton VIP – Templeton Foreign Securities Fund – Class I (FrVIPForSec) 87,702 shares (cost $1,189,905)		1,389,201
Franklin Templeton VIP III – Franklin Global Income Securities Fund – Class 3 (FrVIPGISec3) 4,366 shares (cost $61,780)		61,912
Franklin Templeton VIP III – Templeton Developing Markets Securities Fund – Class 3 (TmDevMktS3) 58,860 shares (cost $572,337)		641,574
Franklin Templeton VIP III – Templeton Foreign Securities Fund – Class 3 (FrVIPForSec3) 44,615 shares (cost $658,531)		695,994
Gartmore GVIT – Dreyfus International Value Fund – Class I (GVITDryIntVal) 62,962 shares (cost $941,004)		1,045,791
Gartmore GVIT – Dreyfus Mid Cap Index Fund – Class I (GVITDMidCapI) 415,797 shares (cost $6,046,506)		7,218,238
Gartmore GVIT – Emerging Markets Fund: Class I (GVITEmMrkts) 178,186 shares (cost $1,997,012)		2,330,678
		(Continued	)

3

NATIONWIDE VLI SEPARATE ACCOUNT-2

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

Gartmore GVIT – Federated High Income Bond Fund: Class I (GVITFHiInc) 44,563 shares (cost $352,402)	$	346,257
Gartmore GVIT – Global Financial Services Fund: Class I (GVITGlFin1) 58,335 shares (cost $732,965)		738,521
Gartmore GVIT – Global Health Sciences Fund: Class I (GVITGlHlth) 73,662 shares (cost $771,071)		761,667
Gartmore GVIT – Global Technology and Communications Fund: Class I (GVITGlTech) 152,000 shares (cost $529,779)		585,200
Gartmore GVIT – Global Utilities Fund: Class I (GVITGlUtl1) 138,435 shares (cost $1,561,399)		1,403,732
Gartmore GVIT – Government Bond Fund: Class I (GVITGvtBd) 990,741 shares (cost $11,969,683)		11,433,156
Gartmore GVIT – Growth Fund – Class I (GVITGrowth) 1,480,294 shares (cost $22,609,033)		16,949,366
Gartmore GVIT – International Growth Fund: Class I (GVITIntGro) 77,377 shares (cost $627,036)		712,646
Gartmore GVIT – Mid Cap Growth Fund: Class I (GVITSMdCpGr) 47,079 shares (cost $1,072,023)		1,278,194
Gartmore GVIT – Money Market Fund – Class I (GVITMyMkt) 26,582,826 shares (cost $26,582,826)		26,582,826
Gartmore GVIT – Nationwide® Fund: Class I (GVITNWFund) 6,326,889 shares (cost $88,844,681)		74,973,633
Gartmore GVIT – Nationwide® Leaders Fund: Class I (GVITLead) 31,896 shares (cost $441,124)		411,145
Gartmore GVIT – Small Cap Growth Fund: Class I (GVITSmCapGr) 79,304 shares (cost $1,127,118)		1,260,932
Gartmore GVIT – Small Cap Value Fund: Class I (GVITSmCapVal) 1,182,187 shares (cost $13,840,857)		13,630,613
Gartmore GVIT – Small Company Fund: Class I (GVITSmComp) 1,324,659 shares (cost $26,879,628)		30,175,732
Gartmore GVIT – U.S. Growth Leaders Fund: Class I (GVITUSGro) 93,316 shares (cost $1,034,227)		1,006,877
Gartmore GVIT – Van Kampen Multi Sector Bond Fund – Class I (GVITVKMultiSec) 105,169 shares (cost $1,043,387)		1,027,502
Gartmore GVIT – Van Kampen Value Fund – Class I (GVITCVal) 70,574 shares (cost $784,554)		813,720
Gartmore GVIT III – Dreyfus International Value Fund – Class III (GVITDryIntVal3) 60,154 shares (cost $925,435)		996,147
Gartmore GVIT III – Emerging Markets Fund: Class III (GVITEmMrkts3) 110,773 shares (cost $1,414,075)		1,448,909
Gartmore GVIT III – Federated High Income Bond Fund: Class III (GVITFHiInc3) 21,139 shares (cost $168,065)		164,035
Gartmore GVIT III – Global Health Sciences Fund: Class III (GVITGlHlth3) 41,813 shares (cost $464,919)		433,188
Gartmore GVIT III – Global Technology and Communications Fund: Class III (GVITGlTech3) 100,191 shares (cost $372,392)		388,740
Gartmore GVIT ID II – Aggressive Fund – Class II (GVITIDAgg) 160,696 shares (cost $1,818,678)		1,923,528
Gartmore GVIT ID II – Conservative Fund – Class II (GVITIDCon) 58,056 shares (cost $599,197)		596,239
Gartmore GVIT ID II – Moderate Fund – Class II (GVITIDMod) 524,670 shares (cost $5,561,361)		5,981,237
Gartmore GVIT ID II – Moderately Aggressive Fund – Class II (GVITIDModAgg) 446,028 shares (cost $4,821,900)		5,280,966
		(Continued	)

4

NATIONWIDE VLI SEPARATE ACCOUNT-2

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

Gartmore GVIT ID II – Moderately Conservative Fund – Class II (GVITIDModCon) 215,229 shares (cost $2,288,766)	$	2,348,149
Janus AS – Balanced Portfolio – Service Shares (JanBal) 8,348 shares (cost $206,085)		222,225
Janus AS – Forty Portfolio – Service Shares (JanCapAp) 97,041 shares (cost $2,148,960)		2,663,778
Janus AS – Global Technology Portfolio – Service Shares (JanGlTech) 298,871 shares (cost $929,726)		1,183,529
Janus AS – International Growth Portfolio – Service Shares (JanIntGro) 82,354 shares (cost $2,105,831)		2,896,383
Janus AS – Risk-Managed Large Cap Core Portfolio – Service Shares (JanRMgLgCap) 20,214 shares (cost $271,276)		251,870
MFS® VITSM – MFS Investors Growth Stock Series – Initial Class (MFSVITInvGrwI) 31,492 shares (cost $284,928)		311,770
MFS® VITSM – MFS Value Series – Initial Class (MFSVITValIn) 27,943 shares (cost $327,985)		349,845
Neuberger Berman AMT – International Portfolio – Class S (NBAMTInt) 61,130 shares (cost $673,480)		714,004
Neuberger Berman AMT – Regency Portfolio – Class S (NBAMTReg) 5,267 shares (cost $84,011)		87,223
Neuberger Berman AMT – Balanced Portfolio® – I Class Shares (NBAMTBal) 4,179 shares (cost $38,307)		43,543
Neuberger Berman AMT – Growth Portfolio® – I Class Shares (NBAMTGro) 1,208,912 shares (cost $11,366,979)		16,670,901
Neuberger Berman AMT – Guardian Portfolio – I Class Shares (NBAMTGuard) 112,011 shares (cost $1,532,318)		1,960,201
Neuberger Berman AMT – Limited Maturity Bond Portfolio – I Class Shares (NBAMTLMat) 315,558 shares (cost $4,186,644)		3,988,655
Neuberger Berman AMT – Partners Portfolio® – I Class Shares (NBAMTPart) 1,276,563 shares (cost $19,686,355)		27,331,204
Neuberger Berman AMT – Socially Responsive Portfolio® – I Class Shares (NBAMTSocRes) 12,316 shares (cost $172,708)		183,629
Neuberger Berman AMT – Fasciano Portfolio – S Class Shares (NBAMTFasc) 8,374 shares (cost $110,898)		118,573
Neuberger Berman AMT – Mid Cap Growth Portfolio® – S Class Shares (NBAMTMCGrS) 13,218 shares (cost $233,404)		265,815
Oppenheimer Funds – Aggressive Growth Fund/VA – Initial Class (OppAggGro) 39,176 shares (cost $1,703,674)		1,934,917
Oppenheimer Funds – Capital Appreciation Fund/VA – Initial Class (OppCapAp) 335,680 shares (cost $10,154,637)		12,930,378
Oppenheimer Funds – Global Securities Fund/VA – Initial Class (OppGlSec) 1,081,195 shares (cost $23,958,041)		36,090,277
Oppenheimer Funds – High Income Fund/VA – Initial Class (OppHighInc) 68,257 shares (cost $569,342)		576,091
Oppenheimer Funds – Main Street Fund®/VA – Initial Class (OppMSFund) 88,523 shares (cost $1,773,161)		1,928,922
Oppenheimer Funds – Main Street Small Cap Fund®/VA – Initial Class (OppMSSmCap) 36,799 shares (cost $544,242)		632,214
Oppenheimer Funds – Multiple Strategies Fund/VA – Initial Class (OppMultStr) 826,502 shares (cost $12,825,167)		14,108,383
Oppenheimer Funds III – Global Securities Fund/VA – Class 3 (OppGlSec3) 88,661 shares (cost $2,688,054)		2,974,560
Oppenheimer VAF – Oppenheimer Bond Fund/VA – Initial Class (OppBdFd) 1,005,698 shares (cost $11,082,319)		11,253,761
		(Continued	)

5

NATIONWIDE VLI SEPARATE ACCOUNT-2

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

Putnam VT IB – Growth & Income Fund – IB Shares (PVTGroInc) 4,247 shares (cost $105,338)	$	111,917
Putnam VT IB – International Equity Fund – IB Shares (PVTIntEq) 19,715 shares (cost $297,121)		320,570
Putnam VT IB – Voyager II Fund – IB Shares (PVTVoyII) 3,749 shares (cost $100,872)		107,046
T. Rowe Price II – Blue Chip Growth Portfolio – II (TRPBluChpGrII) 25,372 shares (cost $241,039)		242,048
T. Rowe Price II – Equity Income Portfolio – II (TRowEqInc2) 14,939 shares (cost $334,508)		325,073
T. Rowe Price II – Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio – Class II (TRLimTrmBnd2) 7,058 shares (cost $34,579)		34,516
Van Eck WIT – Worldwide Bond Fund – Initial Class (VEWrldBd) 258,165 shares (cost $3,193,455)		3,105,723
Van Eck WIT – Worldwide Emerging Markets Fund – Initial Class (VEWrldEMkt) 449,557 shares (cost $5,792,886)		8,950,689
Van Eck WIT – Worldwide Hard Assets Fund – Initial Class (VEWrldHAs) 376,832 shares (cost $6,780,336)		10,453,326
Van Kampen UIF – Core Plus Fixed Income Portfolio – Class I (VKoreFI) 31,559 shares (cost $363,326)		363,874
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I (VKEmMkt) 294,413 shares (cost $2,551,286)		2,661,494
Van Kampen UIF – U.S. Real Estate Portfolio – Class I (VKUSRealEst) 872,121 shares (cost $14,110,951)		20,128,564
Wells Fargo VTF SM – Wells Fargo Advantage Discovery Fund VT (StDisc2) 543,235 shares (cost $6,052,202)		7,789,985
Wells Fargo VTF SM – Wells Fargo Advantage Opportunity Fund VT (StOpp2) 1,386,020 shares (cost $27,498,244)		33,569,415
Total Investments		929,334,020
Accounts Receivable		81,391
Total Assets		929,415,411
Accounts Payable		15,651
Contract Owners Equity (note 7)	$	929,399,760

See accompanying notes to financial statements.

6

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS

Year Ended December 31, 2005

Investment activity:	Total			AIMBValue		AIMCapAp		AIMCapDev		AlVPGrIncA		AlVPSmCapVA		ACVPBal		ACVPCapAp
Reinvested dividends	$	12,961,447		698		52		–		17,016		6,654		100,614		–
Mortality and expense risk charges (note 3)		(6,204,997	)	(5,089	)	(1,017	)	(1,518	)	(5,456	)	(6,129	)	(37,761	)	(91,300	)
Net investment income (loss)		6,756,450		(4,391	)	(965	)	(1,518	)	11,560		525		62,853		(91,300	)
Proceeds from mutual fund shares sold		218,636,378		87,221		258,315		104,906		451,884		320,096		998,746		1,930,642
Cost of mutual fund shares sold		(212,833,981	)	(76,310	)	(252,445	)	(90,244	)	(402,020	)	(288,562	)	(1,012,491	)	(2,064,441	)
Realized gain (loss) on investments		5,802,397		10,911		5,870		14,662		49,864		31,534		(13,745	)	(133,799	)
Change in unrealized gain (loss) on investments		44,234,328		23,967		787		9,434		(18,971	)	(14,639	)	175,002		2,711,854
Net gain (loss) on investments		50,036,725		34,878		6,657		24,096		30,893		16,895		161,257		2,578,055
Reinvested capital gains		13,179,108		8,914		–		–		–		40,190		2,138		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	69,972,283		39,401		5,692		22,578		42,453		57,610		226,248		2,486,755
Investment activity:	ACVPIncGr			ACVPInt		ACVPMidCpVal		ACVPUltra		ACVPVal		ACVPVista		ACVPInflaPro		ACVPInt3
Reinvested dividends	$	75,116		129,128		860		–		117,600		–		46,958		–
Mortality and expense risk charges (note 3)		(25,855	)	(71,955	)	(228	)	(4,830	)	(93,153	)	(24	)	(7,201	)	(5,345	)
Net investment income (loss)		49,261		57,173		632		(4,830	)	24,447		(24	)	39,757		(5,345	)
Proceeds from mutual fund shares sold		949,930		3,190,423		6,660		869,001		2,596,963		1,979		207,084		1,444,777
Cost of mutual fund shares sold		(702,357	)	(2,759,749	)	(6,660	)	(843,519	)	(2,156,750	)	(1,933	)	(209,614	)	(1,406,029	)
Realized gain (loss) on investments		247,573		430,674		–		25,482		440,213		46		(2,530	)	38,748
Change in unrealized gain (loss) on investments		(159,572	)	631,256		(435	)	(39,774	)	(1,258,011	)	37		(28,790	)	147,123
Net gain (loss) on investments		88,001		1,061,930		(435	)	(14,292	)	(817,798	)	83		(31,320	)	185,871
Reinvested capital gains		–		–		2,402		–		1,360,674		–		568		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	137,262		1,119,103		2,599		(19,122	)	567,323		59		9,005		180,526

(Continued)

7

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2005

Investment activity:	CSGPVen			CSIntFoc		CSSmCapGr		DrySmCapIxS		DryStkIx		DrySRGro		DryVIFApp		DryVIFDevLd
Reinvested dividends	$	–		61,630		–		–		1,233,986		–		1,034		–
Mortality and expense risk charges (note 3)		(5,963	)	(45,437	)	(89,573	)	(11,733	)	(501,301	)	(62,999	)	(41,232	)	(2,552	)
Net investment income (loss)		(5,963	)	16,193		(89,573	)	(11,733	)	732,685		(62,999	)	(40,198	)	(2,552	)
Proceeds from mutual fund shares sold		603,350		1,268,509		2,924,042		961,109		11,686,897		1,038,037		1,140,919		138,086
Cost of mutual fund shares sold		(423,882	)	(1,013,529	)	(1,894,617	)	(796,869	)	(13,230,613	)	(1,599,838	)	(932,253	)	(132,615	)
Realized gain (loss) on investments		179,468		254,980		1,029,425		164,240		(1,543,716	)	(561,801	)	208,666		5,471
Change in unrealized gain (loss) on investments		(46,376	)	790,968		(1,440,310	)	(35,007	)	3,730,757		868,402		43,167		16,850
Net gain (loss) on investments		133,092		1,045,948		(410,885	)	129,233		2,187,041		306,601		251,833		22,321
Reinvested capital gains		–		–		–		5,886		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	127,129		1,062,141		(500,458	)	123,386		2,919,726		243,602		211,635		19,769
Investment activity:	DryVIFGrInc			FedAmLead		FedCapAp		FedQualBd		FidVIPEI		FidVIPGr		FidVIPHI		FidVIPOv
Reinvested dividends	$	31,154		2,172		268		40,890		1,197,330		429,060		3,233,590		121,422
Mortality and expense risk charges (note 3)		(15,110	)	(1,035	)	(150	)	(7,255	)	(508,729	)	(599,889	)	(134,740	)	(113,771	)
Net investment income (loss)		16,044		1,137		118		33,635		688,601		(170,829	)	3,098,850		7,651
Proceeds from mutual fund shares sold		369,857		34,788		4,392		261,122		7,136,967		10,078,859		20,034,442		4,566,871
Cost of mutual fund shares sold		(401,930	)	(33,468	)	(3,964	)	(266,371	)	(7,575,313	)	(14,087,593	)	(19,960,505	)	(3,355,837	)
Realized gain (loss) on investments		(32,073	)	1,320		428		(5,249	)	(438,346	)	(4,008,734	)	73,937		1,211,034
Change in unrealized gain (loss) on investments		73,967		4,839		(356	)	(28,170	)	691,808		8,161,191		(2,837,088	)	1,417,693
Net gain (loss) on investments		41,894		6,159		72		(33,419	)	253,462		4,152,457		(2,763,151	)	2,628,727
Reinvested capital gains		–		–		–		7,014		2,631,172		–		–		95,026
Net increase (decrease) in contract owners’ equity resulting from operations	$	57,938		7,296		190		7,230		3,573,235		3,981,628		335,699		2,731,404

(Continued)

8

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2005

Investment activity:	FidVIPOvSR			FidVIPAM		FidVIPCon		FidVIPIGBdS		FidVIPGrOp		FidVIPMCapS		FidVIPVaIS		FidVIPCon2
Reinvested dividends	$	–		601,128		179,636		34,232		39,526		–		–		6,512
Mortality and expense risk charges (note 3)		(5,997	)	(150,713	)	(434,576	)	(13,495	)	(27,242	)	(41,647	)	(9,405	)	(3,740	)
Net investment income (loss)		(5,997	)	450,415		(254,940	)	20,737		12,284		(41,647	)	(9,405	)	2,772
Proceeds from mutual fund shares sold		103,924		2,945,551		5,570,845		362,578		1,763,807		1,229,791		1,399,317		457,142
Cost of mutual fund shares sold		(92,778	)	(3,295,192	)	(4,878,356	)	(366,603	)	(2,005,790	)	(955,473	)	(1,417,220	)	(407,734	)
Realized gain (loss) on investments		11,146		(349,641	)	692,489		(4,025	)	(241,983	)	274,318		(17,903	)	49,408
Change in unrealized gain (loss) on investments		376,763		564,829		9,019,770		(13,301	)	525,041		801,405		(45,834	)	50,196
Net gain (loss) on investments		387,909		215,188		9,712,259		(17,326	)	283,058		1,075,723		(63,737	)	99,604
Reinvested capital gains		–		7,706		11,226		20,900		–		79,678		59,032		85,592
Net increase (decrease) in contract owners’ equity resulting from operations	$	381,912		673,309		9,468,545		24,311		295,342		1,113,754		(14,110	)	187,968
Investment activity:	FidFF2010			FidFF2020		FidFF2030		FrVIPRisDiv		FTVIPSmCpVal		FrVIPForSec		FrVIPGISec3		TmDevMktS3
Reinvested dividends	$	276		1,428		228		33,490		25,566		21,818		3,258		1,860
Mortality and expense risk charges (note 3)		(63	)	(468	)	(60	)	(18,844	)	(19,111	)	(9,455	)	(150	)	(937	)
Net investment income (loss)		213		960		168		14,646		6,455		12,363		3,108		923
Proceeds from mutual fund shares sold		12,245		2,661		283		812,134		822,303		689,681		47,925		84,557
Cost of mutual fund shares sold		(12,203	)	(2,485	)	(268	)	(740,075	)	(674,572	)	(585,987	)	(51,702	)	(76,148	)
Realized gain (loss) on investments		42		176		15		72,059		147,731		103,694		(3,777	)	8,409
Change in unrealized gain (loss) on investments		1,320		13,443		563		(2,803	)	40,513		20,664		132		69,238
Net gain (loss) on investments		1,362		13,619		578		69,256		188,244		124,358		(3,645	)	77,647
Reinvested capital gains		–		–		–		19,938		17,618		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	1,575		14,579		746		103,840		212,317		136,721		(537	)	78,570

(Continued)

9

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2005

Investment activity:	FrVIPForSec3			GVITDryIntVal		GVITDMidCapI		GVITEmMrkts		GVITFHiInc		GVITGlFin1		GVITGlHlth		GVITGlTech
Reinvested dividends	$	1,502		18,256		70,358		12,794		34,760		12,098		–		–
Mortality and expense risk charges (note 3)		(1,013	)	(8,822	)	(45,682	)	(14,247	)	(2,846	)	(4,564	)	(7,197	)	(5,066	)
Net investment income (loss)		489		9,434		24,676		(1,453	)	31,914		7,534		(7,197	)	(5,066	)
Proceeds from mutual fund shares sold		63,815		991,125		2,004,569		902,408		1,297,315		314,478		733,040		485,802
Cost of mutual fund shares sold		(61,042	)	(867,719	)	(1,368,109	)	(808,962	)	(1,314,966	)	(305,727	)	(709,962	)	(567,367	)
Realized gain (loss) on investments		2,773		123,406		636,460		93,446		(17,651	)	8,751		23,078		(81,565	)
Change in unrealized gain (loss) on investments		37,464		(63,445	)	(355,770	)	292,891		(11,541	)	(21,076	)	(32,124	)	42,968
Net gain (loss) on investments		40,237		59,961		280,690		386,337		(29,192	)	(12,325	)	(9,046	)	(38,597	)
Reinvested capital gains		–		53,106		415,044		193,400		–		67,106		88,424		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	40,726		122,501		720,410		578,284		2,722		62,315		72,181		(43,663	)
Investment activity:	GVITGlUtl1			GVITGvtBd		GVITGrowth		GVITIntGro		GVITSMdCpGr		GVITMyMkt		GVITNWFund		GVITLead
Reinvested dividends	$	29,408		449,734		13,648		4,000		–		785,059		671,606		4,396
Mortality and expense risk charges (note 3)		(9,660	)	(86,305	)	(117,659	)	(3,294	)	(8,160	)	(211,061	)	(523,221	)	(2,022	)
Net investment income (loss)		19,748		363,429		(104,011	)	706		(8,160	)	573,998		148,385		2,374
Proceeds from mutual fund shares sold		1,284,978		3,387,514		1,729,831		321,645		381,582		42,855,390		5,505,017		328,770
Cost of mutual fund shares sold		(1,195,274	)	(3,564,138	)	(4,464,855	)	(282,790	)	(323,397	)	(42,855,390	)	(8,036,919	)	(317,166	)
Realized gain (loss) on investments		89,704		(176,624	)	(2,735,024	)	38,855		58,185		–		(2,531,902	)	11,604
Change in unrealized gain (loss) on investments		(229,966	)	99,562		3,772,943		69,474		61,864		–		7,142,405		(39,955	)
Net gain (loss) on investments		(140,262	)	(77,062	)	1,037,919		108,329		120,049		–		4,610,503		(28,351	)
Reinvested capital gains		195,266		22,538		–		1,588		–		–		–		56,438
Net increase (decrease) in contract owners’ equity resulting from operations	$	74,752		308,905		933,908		110,623		111,889		573,998		4,758,888		30,461

(Continued)

10

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2005

Investment activity:	GVITSmCapGr			GVITSmCapVal		GVITSmComp		GVITUSGro		GVITVKMultiSec		GVITCVal		GVITDryIntVal3		GVITEmMrkts3
Reinvested dividends	$	–		9,082		–		–		42,222		11,888		6,104		1,124
Mortality and expense risk charges (note 3)		(9,083	)	(93,901	)	(187,960	)	(6,036	)	(6,846	)	(4,727	)	(2,216	)	(1,816	)
Net investment income (loss)		(9,083	)	(84,819	)	(187,960	)	(6,036	)	35,376		7,161		3,888		(692	)
Proceeds from mutual fund shares sold		1,209,302		5,085,957		3,821,896		528,475		543,792		226,707		166,198		174,584
Cost of mutual fund shares sold		(1,076,496	)	(3,748,191	)	(3,093,968	)	(503,537	)	(536,327	)	(192,787	)	(165,584	)	(165,190	)
Realized gain (loss) on investments		132,806		1,337,766		727,928		24,938		7,465		33,920		614		9,394
Change in unrealized gain (loss) on investments		(49,894	)	(2,634,618	)	(995,207	)	(91,765	)	(34,567	)	(30,719	)	70,712		34,834
Net gain (loss) on investments		82,912		(1,296,852	)	(267,279	)	(66,827	)	(27,102	)	3,201		71,326		44,228
Reinvested capital gains		–		1,564,872		3,550,094		161,958		5,570		20,414		11,850		104,312
Net increase (decrease) in contract owners’ equity resulting from operations	$	73,829		183,201		3,094,855		89,095		13,844		30,776		87,064		147,848
Investment activity:	GVITFHiInc3			GVITGlHlth3		GVITGlTech3		GVITIDAgg		GVITIDCon		GVITIDMod		GVITIDModAgg		GVITIDModCon
Reinvested dividends	$	8,010		–		–		33,224		17,016		124,356		101,682		57,648
Mortality and expense risk charges (note 3)		(463	)	(882	)	(558	)	(11,594	)	(4,498	)	(34,705	)	(34,789	)	(19,921	)
Net investment income (loss)		7,547		(882	)	(558	)	21,630		12,518		89,651		66,893		37,727
Proceeds from mutual fund shares sold		73,080		158,474		66,900		680,705		154,773		520,369		692,478		424,511
Cost of mutual fund shares sold		(72,586	)	(157,616	)	(65,263	)	(589,052	)	(149,367	)	(405,370	)	(513,504	)	(380,306	)
Realized gain (loss) on investments		494		858		1,637		91,653		5,406		114,999		178,974		44,205
Change in unrealized gain (loss) on investments		(4,029	)	(31,731	)	16,348		(4,619	)	(15,757	)	(43,991	)	(41,664	)	(45,321	)
Net gain (loss) on investments		(3,535	)	(30,873	)	17,985		87,034		(10,351	)	71,008		137,310		(1,116	)
Reinvested capital gains		–		41,196		–		35,342		13,526		93,246		102,524		40,334
Net increase (decrease) in contract owners’ equity resulting from operations	$	4,012		9,441		17,427		144,006		15,693		253,905		306,727		76,945

(Continued)

11

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2005

Investment activity:	JanBal			JanCapAp		JanGlTech		JanIntGro		JanRMgLgCap		MFSVITInvGrwI		MFSVITValIn		NBAMTInt
Reinvested dividends	$	4,266		216		–		22,346		3,090		1,156		1,758		784
Mortality and expense risk charges (note 3)		(976	)	(16,678	)	(7,187	)	(13,181	)	(1,517	)	(2,045	)	(1,737	)	(898	)
Net investment income (loss)		3,290		(16,462	)	(7,187	)	9,165		1,573		(889	)	21		(114	)
Proceeds from mutual fund shares sold		13,545		827,187		310,190		651,530		109,024		105,577		77,902		95,972
Cost of mutual fund shares sold		(12,676	)	(623,242	)	(213,999	)	(383,063	)	(104,776	)	(97,658	)	(68,240	)	(96,028	)
Realized gain (loss) on investments		869		203,945		96,191		268,467		4,248		7,919		9,662		(56	)
Change in unrealized gain (loss) on investments		11,177		86,853		20,130		291,505		(20,802	)	9,290		4,912		40,524
Net gain (loss) on investments		12,046		290,798		116,321		559,972		(16,554	)	17,209		14,574		40,468
Reinvested capital gains		–		–		–		–		41,532		–		5,236		3,464
Net increase (decrease) in contract owners’ equity resulting from operations	$	15,336		274,336		109,134		569,137		26,551		16,320		19,831		43,818
Investment activity:	NBAMTReg			NBAMTBal		NBAMTGro		NBAMTGuard		NBAMTLMat		NBAMTPart		NBAMTSocRes		NBAMTFasc
Reinvested dividends	$	–		364		–		2,954		119,612		254,928		–		–
Mortality and expense risk charges (note 3)		(171	)	(255	)	(114,795	)	(12,567	)	(29,813	)	(159,203	)	(1,548	)	(632	)
Net investment income (loss)		(171	)	109		(114,795	)	(9,613	)	89,799		95,725		(1,548	)	(632	)
Proceeds from mutual fund shares sold		79,229		19,489		3,741,983		667,891		2,103,670		4,270,735		187,497		14,654
Cost of mutual fund shares sold		(79,120	)	(17,751	)	(2,912,257	)	(425,970	)	(2,182,073	)	(3,335,356	)	(165,441	)	(12,893	)
Realized gain (loss) on investments		109		1,738		829,726		241,921		(78,403	)	935,379		22,056		1,761
Change in unrealized gain (loss) on investments		3,213		637		1,131,493		(74,766	)	21,009		2,841,210		(11,609	)	1,137
Net gain (loss) on investments		3,322		2,375		1,961,219		167,155		(57,394	)	3,776,589		10,447		2,898
Reinvested capital gains		–		–		–		–		–		5,916		344		572
Net increase (decrease) in contract owners’ equity resulting from operations	$	3,151		2,484		1,846,424		157,542		32,405		3,878,230		9,243		2,838

(Continued)

12

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2005

Investment activity:	NBAMTMCGrS			OppAggGro		OppCapAp		OppGlSec		OppHighInc		OppMSFund		OppMSSmCap		OppMultStr
Reinvested dividends	$	–		–		120,544		378,434		44,126		20,230		–		257,242
Mortality and expense risk charges (note 3)		(1,542	)	(14,677	)	(90,846	)	(242,707	)	(3,694	)	(10,511	)	(4,033	)	(103,246	)
Net investment income (loss)		(1,542	)	(14,677	)	29,698		135,727		40,432		9,719		(4,033	)	153,996
Proceeds from mutual fund shares sold		454,551		1,790,456		3,264,292		6,134,610		567,172		567,550		180,970		2,619,476
Cost of mutual fund shares sold		(407,509	)	(1,524,674	)	(2,440,072	)	(4,677,749	)	(560,976	)	(493,646	)	(153,773	)	(2,561,465	)
Realized gain (loss) on investments		47,042		265,782		824,220		1,456,861		6,196		73,904		27,197		58,011
Change in unrealized gain (loss) on investments		2,625		(73,853	)	(343,491	)	2,816,700		(35,276	)	(4,654	)	16,728		(289,228	)
Net gain (loss) on investments		49,667		191,929		480,729		4,273,561		(29,080	)	69,250		43,925		(231,217	)
Reinvested capital gains		–		–		–		–		–		–		13,920		525,540
Net increase (decrease) in contract owners’ equity resulting from operations	$	48,125		177,252		510,427		4,409,288		11,352		78,969		53,812		448,319
Investment activity:	OppGlSec3			OppBdFd		PVTGroInc		PVTIntEq		PVTVoyII		TRPBluChpGrII		TRowEqInc2		TRLimTrmBnd2
Reinvested dividends	$	–		633,812		1,504		2,226		424		238		2,016		200
Mortality and expense risk charges (note 3)		(7,511	)	(78,129	)	(630	)	(1,454	)	(242	)	(244	)	(602	)	(36	)
Net investment income (loss)		(7,511	)	555,683		874		772		182		(6	)	1,414		164
Proceeds from mutual fund shares sold		150,016		2,709,596		52,801		128,803		6,342		3,250		143,979		163
Cost of mutual fund shares sold		(137,745	)	(2,703,806	)	(48,567	)	(110,377	)	(5,547	)	(3,082	)	(141,559	)	(164	)
Realized gain (loss) on investments		12,271		5,790		4,234		18,426		795		168		2,420		(1	)
Change in unrealized gain (loss) on investments		286,506		(330,503	)	(87	)	9,869		3,168		1,009		(9,434	)	(62	)
Net gain (loss) on investments		298,777		(324,713	)	4,147		28,295		3,963		1,177		(7,014	)	(63	)
Reinvested capital gains		–		–		–		–		–		–		12,064		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	291,266		230,970		5,021		29,067		4,145		1,171		6,464		101

(Continued)

13

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2005

Investment activity:	VEWrldBd			VEWrldEMkt		VEWrldHAs		VKoreFI		VKEmMkt		VKUSRealEst		StDisc2		StOpp2
Reinvested dividends	$	260,362		53,150		24,490		9,322		190,476		235,012		–		–
Mortality and expense risk charges (note 3)		(25,892	)	(47,430	)	(57,761	)	(1,780	)	(14,289	)	(135,089	)	(54,490	)	(239,912	)
Net investment income (loss)		234,470		5,720		(33,271	)	7,542		176,187		99,923		(54,490	)	(239,912	)
Proceeds from mutual fund shares sold		934,950		1,545,784		2,911,887		39,892		1,248,734		4,440,629		1,245,123		5,132,179
Cost of mutual fund shares sold		(962,237	)	(849,369	)	(1,553,305	)	(40,334	)	(1,214,500	)	(2,531,450	)	(955,470	)	(5,622,228	)
Realized gain (loss) on investments		(27,287	)	696,415		1,358,582		(442	)	34,234		1,909,179		289,653		(490,049	)
Change in unrealized gain (loss) on investments		(346,641	)	1,334,255		1,986,081		246		24,829		366,974		(437,422	)	3,022,828
Net gain (loss) on investments		(373,928	)	2,030,670		3,344,663		(196	)	59,063		2,276,153		(147,769	)	2,532,779
Reinvested capital gains		–		–		–		1,912		40,480		519,092		715,214		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	(139,458	)	2,036,390		3,311,392		9,258		275,730		2,895,168		512,955		2,292,867

See accompanying notes to financial statements.

14

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2005 and 2004

	Total					AIMBValue				AIMCapAp				AIMCapDev
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	6,756,450		4,909,183		(4,391	)	(3,551	)	(965	)	(653	)	(1,518	)	(855	)
Realized gain (loss) on investments		5,802,397		(2,276,513	)	10,911		11,559		5,870		7,449		14,662		4,921
Change in unrealized gain (loss) on investments		44,234,328		79,434,320		23,967		40,599		787		(5,301	)	9,434		20,230
Reinvested capital gains		13,179,108		5,894,860		8,914		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		69,972,283		87,961,850		39,401		48,607		5,692		1,495		22,578		24,296
Equity transactions:
Purchase payments received from contract owners (note 6)		63,121,158		69,481,040		88,640		35,522		6,876		29,196		20,052		13,168
Transfers between funds		–		–		62,224		493,566		17,342		(26,360	)	(14,078	)	148,686
Surrenders (note 6)		(69,500,794	)	(73,138,728	)	(29,194	)	(101,278	)	(994	)	(10,006	)	(10,546	)	(582	)
Death benefits (note 4)		(3,794,134	)	(4,542,616	)	(106	)	–		–		–		–		–
Net policy repayments (loans) (note 5)		898,160		3,031,442		(3,764	)	7,288		10		–		(306	)	(684	)
Deductions for surrender charges (note 2d)		(1,252,942	)	(1,863,380	)	(88	)	(472	)	(118	)	(164	)	(62	)	(8	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(45,231,780	)	(45,778,018	)	(26,368	)	(15,900	)	(2,562	)	(2,518	)	(12,998	)	(7,884	)
Asset charges (note 3):
MSP contracts		(402,742	)	(401,693	)	(21	)	(37	)	(17	)	–		(59	)	(16	)
LSFP contracts		(424,918	)	(408,347	)	(72	)	(81	)	(5	)	(8	)	(200	)	(191	)
Adjustments to maintain reserves		387,993		(276,260	)	43		84		6		54		(28	)	88
Net equity transactions		(56,199,999	)	(53,896,560	)	91,294		418,692		20,538		(9,806	)	(18,225	)	152,577
Net change in contract owners’ equity		13,772,284		34,065,290		130,695		467,299		26,230		(8,311	)	4,353		176,873
Contract owners’ equity beginning of period		915,627,476		881,562,186		670,737		203,438		58,400		66,711		239,247		62,374
Contract owners’ equity end of period	$	929,399,760		915,627,476		801,432		670,737		84,630		58,400		243,600		239,247
CHANGES IN UNITS:
Beginning units		39,381,106		42,122,919		46,810		15,645		4,476		5,411		16,082		4,816
Units purchased		15,006,946		8,772,462		30,105		39,833		1,956		2,721		2,056		11,990
Units redeemed		(13,683,428	)	(11,514,275	)	(23,809	)	(8,668	)	(440	)	(3,656	)	(3,102	)	(724	)
Ending units		40,704,624		39,381,106		53,106		46,810		5,992		4,476		15,036		16,082

(Continued)

15

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	AlVPGrIncA					AlVPSmCapVA				ACVPBal				ACVPCapAp
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	11,560		2,918		525		(2,417	)	62,853		51,554		(91,300	)	(93,439	)
Realized gain (loss) on investments		49,864		24,986		31,534		41,561		(13,745	)	(32,159	)	(133,799	)	(620,237	)
Change in unrealized gain (loss) on investments		(18,971	)	50,846		(14,639	)	68,703		175,002		457,056		2,711,854		1,468,614
Reinvested capital gains		–		–		40,190		8,078		2,138		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		42,453		78,750		57,610		115,925		226,248		476,451		2,486,755		754,938
Equity transactions:
Purchase payments received from contract owners (note 6)		128,310		127,076		88,588		49,214		327,960		391,466		991,958		1,058,944
Transfers between funds		100,470		398,776		116,956		631,852		(112,376	)	23,106		188,038		(952,342	)
Surrenders (note 6)		(210,372	)	(64,460	)	(39,544	)	(86,583	)	(405,472	)	(473,397	)	(822,808	)	(1,043,813	)
Death benefits (note 4)		–		–		(90	)	–		(38,842	)	(57,230	)	(76,010	)	(30,998	)
Net policy repayments (loans) (note 5)		(178	)	(5,074	)	(17,086	)	(52,904	)	(52,262	)	42,342		(39,198	)	(171,170	)
Deductions for surrender charges (note 2d)		(1,162	)	(1,890	)	(486	)	(147	)	(7,328	)	(9,903	)	(15,062	)	(13,664	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(39,592	)	(34,606	)	(35,760	)	(15,714	)	(262,706	)	(273,398	)	(726,550	)	(713,770	)
Asset charges (note 3):
MSP contracts		(1,148	)	(855	)	(421	)	(504	)	(5,102	)	(4,296	)	(4,938	)	(4,329	)
LSFP contracts		(1,076	)	(788	)	(184	)	(194	)	(1,530	)	(1,547	)	(2,442	)	(2,365	)
Adjustments to maintain reserves		8		127		(93	)	201		(356	)	(16,752	)	(21,392	)	13,111
Net equity transactions		(24,740	)	418,306		111,880		525,221		(558,014	)	(379,609	)	(528,404	)	(1,860,396	)
Net change in contract owners’ equity		17,713		497,056		169,490		641,146		(331,766	)	96,842		1,958,351		(1,105,458	)
Contract owners’ equity beginning of period		913,433		416,377		852,487		211,341		5,726,483		5,629,641		11,993,491		13,098,949
Contract owners’ equity end of period	$	931,146		913,433		1,021,977		852,487		5,394,717		5,726,483		13,951,842		11,993,491
CHANGES IN UNITS:
Beginning units		66,458		33,587		52,384		15,381		263,900		281,953		658,094		787,974
Units purchased		21,716		40,603		29,959		46,840		107,087		46,826		348,294		104,451
Units redeemed		(23,216	)	(7,732	)	(23,299	)	(9,837	)	(106,047	)	(64,879	)	(285,602	)	(234,331	)
Ending units		64,958		66,458		59,044		52,384		264,940		263,900		720,786		658,094

(Continued)

16

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	ACVPIncGr					ACVPInt				ACVPMidCpVal			ACVPUltra
Investment activity:	2005			2004		2005		2004		2005		2004	2005		2004
Net investment income (loss)	$	49,261		27,130		57,173		(15,493	)	632		–	(4,830	)	(5,362	)
Realized gain (loss) on investments		247,573		168,601		430,674		(128,993	)	–		–	25,482		(7,423	)
Change in unrealized gain (loss) on investments		(159,572	)	221,739		631,256		1,534,838		(435	)	–	(39,774	)	40,489
Reinvested capital gains		–		–		–		–		2,402		–	–		–
Net increase (decrease) in contract owners’ equity resulting from operations		137,262		417,470		1,119,103		1,390,352		2,599		–	(19,122	)	27,704
Equity transactions:
Purchase payments received from contract owners (note 6)		189,444		226,060		243,198		772,956		2,690		–	30,928		69,390
Transfers between funds		(113,836	)	(75,266	)	(1,303,244	)	(1,004,794	)	100,510		–	(69,202	)	446,860
Surrenders (note 6)		(233,010	)	(296,076	)	(636,772	)	(865,282	)	–		–	(77,334	)	(19,123	)
Death benefits (note 4)		–		–		(11,794	)	(17,724	)	–		–	(5,908	)	(10,646	)
Net policy repayments (loans) (note 5)		3,426		(5,576	)	(155,324	)	(12,270	)	(1,290	)	–	(9,016	)	(6,214	)
Deductions for surrender charges (note 2d)		(4,528	)	(15,820	)	(14,894	)	(31,075	)	–		–	(202	)	(226	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(157,308	)	(168,154	)	(433,704	)	(494,264	)	(1,092	)	–	(23,720	)	(26,972	)
Asset charges (note 3):
MSP contracts		(2,386	)	(2,732	)	(2,996	)	(3,576	)	(5	)	–	(291	)	(876	)
LSFP contracts		(1,278	)	(1,729	)	(5,407	)	(6,467	)	(14	)	–	(513	)	(642	)
Adjustments to maintain reserves		(3	)	242		502		(16,185	)	59		–	(5	)	122
Net equity transactions		(319,479	)	(339,051	)	(2,320,435	)	(1,678,681	)	100,858		–	(155,263	)	451,673
Net change in contract owners’ equity		(182,217	)	78,419		(1,201,332	)	(288,329	)	103,457		–	(174,385	)	479,377
Contract owners’ equity beginning of period		3,820,422		3,742,003		11,186,069		11,474,398		–		–	945,377		466,000
Contract owners’ equity end of period	$	3,638,205		3,820,422		9,984,737		11,186,069		103,457		–	770,992		945,377
CHANGES IN UNITS:
Beginning units		322,014		353,293		650,574		762,045		–		–	86,518		46,927
Units purchased		99,246		49,103		149,191		92,138		9,395		–	13,155		49,139
Units redeemed		(123,688	)	(80,382	)	(250,697	)	(203,609	)	(219	)	–	(30,213	)	(9,548	)
Ending units		297,572		322,014		549,068		650,574		9,176		–	69,460		86,518

(Continued)

17

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	ACVPVal					ACVPVista			ACVPInflaPro				ACVPInt3
Investment activity:	2005			2004		2005		2004	2005		2004		2005		2004
Net investment income (loss)	$	24,447		37,288		(24	)	–	39,757		16,055		(5,345	)	–
Realized gain (loss) on investments		440,213		481,111		46		–	(2,530	)	655		38,748		–
Change in unrealized gain (loss) on investments		(1,258,011	)	1,012,962		37		–	(28,790	)	9,790		147,123		–
Reinvested capital gains		1,360,674		100,800		–		–	568		172		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		567,323		1,632,161		59		–	9,005		26,672		180,526		–
Equity transactions:
Purchase payments received from contract owners (note 6)		750,758		901,250		28		–	66,570		87,896		444,582		–
Transfers between funds		158,172		(334,816	)	29,076		–	241,474		819,828		907,628		–
Surrenders (note 6)		(719,062	)	(1,231,770	)	–		–	(51,112	)	(18,824	)	(172,776	)	–
Death benefits (note 4)		(808	)	(68,752	)	–		–	–		–		(236	)	–
Net policy repayments (loans) (note 5)		(89,452	)	258,974		–		–	(11,166	)	(2,120	)	228,558		–
Deductions for surrender charges (note 2d)		(17,348	)	(21,878	)	–		–	(138	)	(64	)	(344	)	–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(513,258	)	(501,372	)	(120	)	–	(42,692	)	(24,724	)	(33,328	)	–
Asset charges (note 3):
MSP contracts		(7,115	)	(7,193	)	(5	)	–	(814	)	(158	)	(469	)	–
LSFP contracts		(7,741	)	(8,766	)	–		–	(80	)	(47	)	(328	)	–
Adjustments to maintain reserves		(228	)	745		23		–	(27	)	(36	)	72		–
Net equity transactions		(446,082	)	(1,013,578	)	29,002		–	202,015		861,751		1,373,359		–
Net change in contract owners’ equity		121,241		618,583		29,061		–	211,020		888,423		1,553,885		–
Contract owners’ equity beginning of period		13,369,560		12,750,977		–		–	963,559		75,136		–		–
Contract owners’ equity end of period	$	13,490,801		13,369,560		29,061		–	1,174,579		963,559		1,553,885		–
CHANGES IN UNITS:
Beginning units		621,194		672,518		–		–	89,246		7,313		–		–
Units purchased		172,292		133,333		2,559		–	32,808		85,609		141,605		–
Units redeemed		(177,106	)	(184,657	)	(11	)	–	(14,332	)	(3,676	)	(7,983	)	–
Ending units		616,380		621,194		2,548		–	107,722		89,246		133,622		–

(Continued)

18

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	CSGPVen					CSIntFoc				CSSmCapGr				DrySmCapIxS
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(5,963	)	(5,968	)	16,193		19,083		(89,573	)	(103,596	)	(11,733	)	(1,174	)
Realized gain (loss) on investments		179,468		59,105		254,980		86,421		1,029,425		799,688		164,240		131,484
Change in unrealized gain (loss) on investments		(46,376	)	73,406		790,968		694,824		(1,440,310	)	682,170		(35,007	)	172,260
Reinvested capital gains		–		–		–		–		–		–		5,886		41,304
Net increase (decrease) in contract owners’ equity resulting from operations		127,129		126,543		1,062,141		800,328		(500,458	)	1,378,262		123,386		343,874
Equity transactions:
Purchase payments received from contract owners (note 6)		63,986		52,592		413,648		482,274		974,358		1,143,502		94,092		161,358
Transfers between funds		54,316		(128,082	)	(255,978	)	(155,782	)	(767,204	)	(962,634	)	(67,224	)	630,836
Surrenders (note 6)		(36,774	)	(41,977	)	(264,698	)	(367,092	)	(793,446	)	(1,237,023	)	(121,940	)	(64,217	)
Death benefits (note 4)		–		(4,548	)	(77,954	)	(18,522	)	(54,252	)	(28,560	)	–		–
Net policy repayments (loans) (note 5)		(27,512	)	(7,418	)	9,452		(5,770	)	58,184		77,356		(9,566	)	(40,932	)
Deductions for surrender charges (note 2d)		(76	)	(1,426	)	(11,918	)	(14,049	)	(21,220	)	(43,380	)	(2,670	)	(3,743	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(51,638	)	(39,452	)	(317,826	)	(305,216	)	(692,044	)	(769,020	)	(69,272	)	(47,766	)
Asset charges (note 3):
MSP contracts		(645	)	(483	)	(3,637	)	(3,639	)	(4,434	)	(4,704	)	(2,841	)	(2,217	)
LSFP contracts		(838	)	(641	)	(5,839	)	(5,035	)	(9,795	)	(9,701	)	(1,433	)	(1,297	)
Adjustments to maintain reserves		26		83		3,746		501		147,315		1,336		39		157
Net equity transactions		845		(171,352	)	(511,004	)	(392,330	)	(1,162,538	)	(1,832,828	)	(180,815	)	632,179
Net change in contract owners’ equity		127,974		(44,809	)	551,137		407,998		(1,662,996	)	(454,566	)	(57,429	)	976,053
Contract owners’ equity beginning of period		830,257		875,066		6,603,576		6,195,578		14,430,221		14,884,787		2,092,687		1,116,634
Contract owners’ equity end of period	$	958,231		830,257		7,154,713		6,603,576		12,767,225		14,430,221		2,035,258		2,092,687
CHANGES IN UNITS:
Beginning units		65,698		81,649		553,182		591,551		801,312		906,285		165,014		106,585
Units purchased		17,988		9,118		78,912		85,208		164,876		134,426		44,866		76,878
Units redeemed		(16,140	)	(25,069	)	(114,378	)	(123,577	)	(208,892	)	(239,399	)	(59,590	)	(18,449	)
Ending units		67,546		65,698		517,716		553,182		757,296		801,312		150,290		165,014

(Continued)

19

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	DryStkIx					DrySRGro				DryVIFApp				DryVIFDevLd
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	732,685		873,076		(62,999	)	(33,728	)	(40,198	)	56,471		(2,552	)	(1,662	)
Realized gain (loss) on investments		(1,543,716	)	(1,532,885	)	(561,801	)	(806,699	)	208,666		155,012		5,471		15,990
Change in unrealized gain (loss) on investments		3,730,757		8,040,385		868,402		1,328,566		43,167		46,494		16,850		12,674
Reinvested capital gains		–		–		–		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		2,919,726		7,380,576		243,602		488,139		211,635		257,977		19,769		27,002
Equity transactions:
Purchase payments received from contract owners (note 6)		6,390,148		5,819,012		976,402		1,128,736		365,466		473,540		34,892		35,436
Transfers between funds		(6,220,270	)	(761,242	)	(565,722	)	(666,026	)	(339,064	)	(289,280	)	(22,200	)	297,292
Surrenders (note 6)		(4,670,510	)	(5,274,180	)	(447,314	)	(831,998	)	(364,278	)	(612,235	)	(4,278	)	(63,513	)
Death benefits (note 4)		(132,604	)	(76,370	)	(26,172	)	(37,622	)	–		(3,640	)	–		–
Net policy repayments (loans) (note 5)		160,438		(19,290	)	(58,546	)	15,494		38,078		127,596		(3,002	)	(14,384	)
Deductions for surrender charges (note 2d)		(145,956	)	(169,358	)	(20,686	)	(23,562	)	(13,214	)	(17,243	)	(136	)	(2,314	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(3,639,900	)	(3,849,024	)	(639,946	)	(714,430	)	(253,240	)	(276,726	)	(23,160	)	(19,066	)
Asset charges (note 3):
MSP contracts		(31,664	)	(33,721	)	(2,569	)	(2,730	)	(1,103	)	(1,480	)	(269	)	(84	)
LSFP contracts		(62,339	)	(64,318	)	(3,311	)	(3,474	)	(6,611	)	(6,503	)	(352	)	(332	)
Adjustments to maintain reserves		143,866		(17,510	)	(197	)	(4,322	)	(733	)	917		39		71
Net equity transactions		(8,208,791	)	(4,446,001	)	(788,061	)	(1,139,934	)	(574,699	)	(605,054	)	(18,466	)	233,106
Net change in contract owners’ equity		(5,289,065	)	2,934,575		(544,459	)	(651,795	)	(363,064	)	(347,077	)	1,303		260,108
Contract owners’ equity beginning of period		81,237,544		78,302,969		9,337,664		9,989,459		6,148,259		6,495,336		436,374		176,266
Contract owners’ equity end of period	$	75,948,479		81,237,544		8,793,205		9,337,664		5,785,195		6,148,259		437,677		436,374
CHANGES IN UNITS:
Beginning units		3,024,638		3,212,360		420,438		474,191		456,698		503,372		30,716		13,709
Units purchased		797,667		503,402		93,584		89,754		90,951		64,225		7,425		24,841
Units redeemed		(873,851	)	(691,124	)	(115,562	)	(143,507	)	(127,401	)	(110,899	)	(8,885	)	(7,834	)
Ending units		2,948,454		3,024,638		398,460		420,438		420,248		456,698		29,256		30,716

(Continued)

20

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	DryVIFGrInc					FedAmLead				FedCapAp				FedQualBd
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	16,044		13,339		1,137		(182	)	118		(69	)	33,635		58,606
Realized gain (loss) on investments		(32,073	)	(116,587	)	1,320		579		428		109		(5,249	)	(27,697	)
Change in unrealized gain (loss) on investments		73,967		272,360		4,839		10,052		(356	)	1,916		(28,170	)	(13,787	)
Reinvested capital gains		—		—		—		—		—		—		7,014		15,062
Net increase (decrease) in contract owners’ equity resulting from operations		57,938		169,112		7,296		10,449		190		1,956		7,230		32,184
Equity transactions:
Purchase payments received from contract owners (note 6)		162,380		190,266		6,864		18,822		2,390		2,036		84,588		109,548
Transfers between funds		(38,456	)	(177,546	)	49,256		77,360		(1,056	)	16,614		104,356		(263,806	)
Surrenders (note 6)		(153,462	)	(81,752	)	(4,598	)	–		(936	)	–		(124,800	)	(280,016	)
Death benefits (note 4)		(40,578	)	(634	)	–		–		–		–		(14	)	–
Net policy repayments (loans) (note 5)		(9,498	)	(28,366	)	4,550		–		(6	)	–		23,852		5,516
Deductions for surrender charges (note 2d)		(3,774	)	(2,029	)	–		–		(28	)	–		(2,826	)	(1,758	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(118,650	)	(121,480	)	(4,042	)	(1,294	)	(1,308	)	(1,082	)	(67,980	)	(79,436	)
Asset charges (note 3):
MSP contracts		(1,920	)	(2,069	)	–		–		–		–		(1,484	)	(1,037	)
LSFP contracts		(2,378	)	(2,022	)	(34	)	(8	)	–		–		(255	)	(241	)
Adjustments to maintain reserves		23		177		26		26		(9	)	61		28		1,802
Net equity transactions		(206,313	)	(225,455	)	52,022		94,906		(953	)	17,629		15,465		(509,428	)
Net change in contract owners’ equity		(148,375	)	(56,343	)	59,318		105,355		(763	)	19,585		22,695		(477,244	)
Contract owners’ equity beginning of period		2,458,715		2,515,058		119,190		13,835		26,215		6,630		1,146,508		1,623,752
Contract owners’ equity end of period	$	2,310,340		2,458,715		178,508		119,190		25,452		26,215		1,169,203		1,146,508
CHANGES IN UNITS:
Beginning units		185,888		203,263		8,716		1,104		2,046		553		99,904		145,750
Units purchased		40,682		23,926		5,010		7,714		261		1,582		34,895		25,226
Units redeemed		(49,404	)	(41,301	)	(1,236	)	(102	)	(347	)	(89	)	(33,877	)	(71,072	)
Ending units		177,166		185,888		12,490		8,716		1,960		2,046		100,922		99,904

(Continued)

21

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	FidVIPEI					FidVIPGr				FidVIPHI				FidVIPOv
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	688,601		592,619		(170,829	)	(443,590	)	3,098,850		1,864,799		7,651		69,567
Realized gain (loss) on investments		(438,346	)	(134,459	)	(4,008,734	)	(3,912,874	)	73,937		2,220,844		1,211,034		236,087
Change in unrealized gain (loss) on investments		691,808		6,772,765		8,161,191		6,531,064		(2,837,088	)	(1,972,719	)	1,417,693		1,839,902
Reinvested capital gains		2,631,172		273,300		–		–		–		–		95,026		–
Net increase (decrease) in contract owners’ equity resulting from operations		3,573,235		7,504,225		3,981,628		2,174,600		335,699		2,112,924		2,731,404		2,145,556
Equity transactions:
Purchase payments received from contract owners (note 6)		4,276,432		4,682,522		6,634,272		7,682,530		1,125,916		1,274,410		339,404		1,200,290
Transfers between funds		(1,568,012	)	(609,102	)	(5,237,722	)	(3,502,668	)	(4,769,268	)	(850,270	)	(2,267,056	)	242,818
Surrenders (note 6)		(4,242,404	)	(5,559,758	)	(5,321,108	)	(6,015,624	)	(1,430,746	)	(1,847,641	)	(1,241,402	)	(1,183,433	)
Death benefits (note 4)		(386,046	)	(453,804	)	(385,328	)	(203,234	)	(55,498	)	(235,720	)	(102,992	)	(69,402	)
Net policy repayments (loans) (note 5)		(324,136	)	(281,628	)	171,620		(163,886	)	147,382		(269,810	)	(196,920	)	28,242
Deductions for surrender charges (note 2d)		(68,256	)	(138,476	)	(92,286	)	(122,330	)	(18,716	)	(63,387	)	(9,828	)	(19,778	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(3,460,728	)	(3,619,962	)	(4,618,442	)	(5,031,380	)	(981,708	)	(1,112,912	)	(715,194	)	(785,808	)
Asset charges (note 3):
MSP contracts		(35,185	)	(35,698	)	(21,245	)	(23,346	)	(13,335	)	(15,003	)	(5,342	)	(5,129	)
LSFP contracts		(27,017	)	(26,478	)	(29,556	)	(29,338	)	(9,345	)	(10,950	)	(9,197	)	(7,924	)
Adjustments to maintain reserves		(22,180	)	6,794		(67,826	)	43,880		(4,671	)	31,312		(12,213	)	(4,815	)
Net equity transactions		(5,857,532	)	(6,035,590	)	(8,967,621	)	(7,365,396	)	(6,009,989	)	(3,099,971	)	(4,220,740	)	(604,939	)
Net change in contract owners’ equity		(2,284,297	)	1,468,635		(4,985,993	)	(5,190,796	)	(5,674,290	)	(987,047	)	(1,489,336	)	1,540,617
Contract owners’ equity beginning of period		75,753,426		74,284,791		89,885,403		95,076,199		24,799,760		25,786,807		18,733,377		17,192,760
Contract owners’ equity end of period	$	73,469,129		75,753,426		84,899,410		89,885,403		19,125,470		24,799,760		17,244,041		18,733,377
CHANGES IN UNITS:
Beginning units		1,873,796		2,059,854		2,468,188		2,758,125		1,035,038		1,189,559		867,542		929,231
Units purchased		884,610		252,033		1,237,181		419,056		265,940		161,920		283,227		189,869
Units redeemed		(675,696	)	(438,091	)	(941,053	)	(708,993	)	(435,478	)	(316,441	)	(404,951	)	(251,558	)
Ending units		2,082,710		1,873,796		2,764,316		2,468,188		865,500		1,035,038		745,818		867,542

(Continued)

22

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	FidVIPOvSR				FidVIPAM				FidVIPCon				FidVIPIGBdS
Investment activity:	2005			2004	2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(5,997	)	–	450,415		461,392		(254,940	)	(219,252	)	20,737		10,773
Realized gain (loss) on investments		11,146		–	(349,641	)	(529,148	)	692,489		(72,116	)	(4,025	)	(10,390	)
Change in unrealized gain (loss) on investments		376,763		–	564,829		1,123,796		9,019,770		7,993,551		(13,301	)	18,606
Reinvested capital gains		–		–	7,706		–		11,226		–		20,900		10,740
Net increase (decrease) in contract owners’ equity resulting from operations		381,912		–	673,309		1,056,040		9,468,545		7,702,183		24,311		29,729
Equity transactions:
Purchase payments received from contract owners (note 6)		680,560		–	1,143,732		1,362,064		3,426,214		3,768,052		121,204		120,520
Transfers between funds		1,623,842		–	(512,764	)	(575,488	)	2,390,668		930,944		1,813,088		822,392
Surrenders (note 6)		(119,598	)	–	(1,877,914	)	(1,751,498	)	(3,532,336	)	(3,850,752	)	(61,552	)	(242,179	)
Death benefits (note 4)		(1,624	)	–	(272,552	)	(100,692	)	(203,908	)	(136,828	)	–		–
Net policy repayments (loans) (note 5)		175,084		–	148,348		(60,134	)	(273,738	)	(343,396	)	(2,788	)	(10,414	)
Deductions for surrender charges (note 2d)		(466	)	–	(14,732	)	(25,977	)	(101,032	)	(183,454	)	(1,578	)	(5,992	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(75,868	)	–	(980,678	)	(1,042,868	)	(2,656,078	)	(2,563,618	)	(76,578	)	(33,280	)
Asset charges (note 3):
MSP contracts		(41	)	–	(6,788	)	(8,291	)	(23,286	)	(20,179	)	(1,017	)	(594	)
LSFP contracts		(661	)	–	(4,954	)	(4,465	)	(31,998	)	(28,070	)	(1,105	)	(1,132	)
Adjustments to maintain reserves		118		–	(13,081	)	(5,288	)	7,607		7,627		(34	)	110
Net equity transactions		2,281,346		–	(2,391,383	)	(2,212,637	)	(997,887	)	(2,419,674	)	1,789,640		649,431
Net change in contract owners’ equity		2,663,258		–	(1,718,074	)	(1,156,597	)	8,470,658		5,282,509		1,813,951		679,160
Contract owners’ equity beginning of period		–		–	23,099,307		24,255,904		59,955,159		54,672,650		919,417		240,257
Contract owners’ equity end of period	$	2,663,258		–	21,381,233		23,099,307		68,425,817		59,955,159		2,733,368		919,417
CHANGES IN UNITS:
Beginning units		–		–	829,310		929,268		2,196,532		2,298,709		87,010		23,615
Units purchased		227,292		–	512,422		200,959		595,164		298,867		183,122		89,463
Units redeemed		(13,428	)	–	(425,776	)	(300,917	)	(509,762	)	(401,044	)	(14,408	)	(26,068	)
Ending units		213,864		–	915,956		829,310		2,281,934		2,196,532		255,724		87,010

(Continued)

23

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	FidVIPGrOp					FidVIPMCapS				FidVIPVaIS				FidVIPCon2
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	12,284		(6,185	)	(41,647	)	(13,935	)	(9,405	)	(16,146	)	2,772		–
Realized gain (loss) on investments		(241,983	)	(277,935	)	274,318		71,720		(17,903	)	210,002		49,408		–
Change in unrealized gain (loss) on investments		525,041		555,712		801,405		551,905		(45,834	)	(95,148	)	50,196		–
Reinvested capital gains		–		–		79,678		–		59,032		5,608		85,592		–
Net increase (decrease) in contract owners’ equity resulting from operations		295,342		271,592		1,113,754		609,690		(14,110	)	104,316		187,968		–
Equity transactions:
Purchase payments received from contract owners (note 6)		344,226		404,720		533,880		336,798		76,358		205,304		58,540		–
Transfers between funds		(421,544	)	107,890		2,962,566		3,000,958		(613,290	)	(180,056	)	1,649,170		–
Surrenders (note 6)		(238,812	)	(301,588	)	(620,812	)	(232,890	)	(211,158	)	(101,474	)	(3,970	)	–
Death benefits (note 4)		(5,844	)	(16,426	)	–		–		–		–		–		–
Net policy repayments (loans) (note 5)		(36,264	)	30,642		(33,242	)	(59,662	)	(12,436	)	(44,428	)	(15,300	)	–
Deductions for surrender charges (note 2d)		(6,722	)	(16,966	)	(8,674	)	(5,869	)	(2,170	)	(1,994	)	–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(195,190	)	(210,638	)	(267,044	)	(93,814	)	(68,474	)	(94,152	)	(29,276	)	–
Asset charges (note 3):
MSP contracts		(1,755	)	(1,797	)	(3,034	)	(2,020	)	(868	)	(1,669	)	(379	)	–
LSFP contracts		(3,432	)	(3,255	)	(1,614	)	(878	)	(707	)	(780	)	(41	)	–
Adjustments to maintain reserves		24		185		32		238		(35	)	53		85		–
Net equity transactions		(565,313	)	(7,233	)	2,562,058		2,942,861		(832,780	)	(219,196	)	1,658,829		–
Net change in contract owners’ equity		(269,971	)	264,359		3,675,812		3,552,551		(846,890	)	(114,880	)	1,846,797		–
Contract owners’ equity beginning of period		4,436,477		4,172,118		4,293,243		740,692		2,021,897		2,136,777		–		–
Contract owners’ equity end of period	$	4,166,506		4,436,477		7,969,055		4,293,243		1,175,007		2,021,897		1,846,797		–
CHANGES IN UNITS:
Beginning units		422,878		423,769		247,050		52,810		152,482		182,656		–		–
Units purchased		50,100		66,328		193,614		219,882		29,683		34,952		140,962		–
Units redeemed		(103,634	)	(67,219	)	(50,444	)	(25,642	)	(95,169	)	(65,126	)	(3,730	)	–
Ending units		369,344		422,878		390,220		247,050		86,996		152,482		137,232		–

(Continued)

24

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	FidFF2010				FidFF2020			FidFF2030			FrVIPRisDiv
Investment activity:	2005			2004	2005		2004	2005		2004	2005		2004
Net investment income (loss)	$	213		–	960		–	168		–	14,646		1,025
Realized gain (loss) on investments		42		–	176		–	15		–	72,059		45,375
Change in unrealized gain (loss) on investments		1,320		–	13,443		–	563		–	(2,803	)	136,846
Reinvested capital gains		–		–	–		–	–		–	19,938		20,468
Net increase (decrease) in contract owners’ equity resulting from operations		1,575		–	14,579		–	746		–	103,840		203,714
Equity transactions:
Purchase payments received from contract owners (note 6)		2,332		–	1,000		–	1,226		–	321,422		300,688
Transfers between funds		72,488		–	252,104		–	41,294		–	923,274		1,348,144
Surrenders (note 6)		–		–	–		–	–		–	(441,810	)	(145,801	)
Death benefits (note 4)		–		–	–		–	–		–	–		–
Net policy repayments (loans) (note 5)		(11,606	)	–	(44	)	–	–		–	(10,662	)	(18,846	)
Deductions for surrender charges (note 2d)		–		–	–		–	–		–	(3,596	)	(2,978	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(938	)	–	(2,492	)	–	(272	)	–	(135,758	)	(78,610	)
Asset charges (note 3):
MSP contracts		(80	)	–	(331	)	–	–		–	(1,993	)	(1,802	)
LSFP contracts		–		–	–		–	–		–	(1,476	)	(775	)
Adjustments to maintain reserves		56		–	49		–	35		–	(88	)	211
Net equity transactions		62,252		–	250,286		–	42,283		–	649,313		1,400,231
Net change in contract owners’ equity		63,827		–	264,865		–	43,029		–	753,153		1,603,945
Contract owners’ equity beginning of period		–		–	–		–	–		–	2,517,386		913,441
Contract owners’ equity end of period	$	63,827		–	264,865		–	43,029		–	3,270,539		2,517,386
CHANGES IN UNITS:
Beginning units		–		–	–		–	–		–	185,710		74,514
Units purchased		7,128		–	24,209		–	3,842		–	85,734		126,703
Units redeemed		(1,204	)	–	(295	)	–	(24	)	–	(37,148	)	(15,507	)
Ending units		5,924		–	23,914		–	3,818		–	234,296		185,710

(Continued)

25

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	FTVIPSmCpVal					FrVIPForSec				FrVIPGISec3			TmDevMktS3
Investment activity:	2005			2004		2005		2004		2005		2004	2005		2004
Net investment income (loss)	$	6,455		(3,551	)	12,363		4,288		3,108		–	923		–
Realized gain (loss) on investments		147,731		21,260		103,694		25,804		(3,777	)	–	8,409		–
Change in unrealized gain (loss) on investments		40,513		219,705		20,664		147,057		132		–	69,238		–
Reinvested capital gains		17,618		–		–		–		–		–	–		–
Net increase (decrease) in contract owners’ equity resulting from operations		212,317		237,414		136,721		177,149		(537	)	–	78,570		–
Equity transactions:
Purchase payments received from contract owners (note 6)		268,370		106,506		46,438		95,482		16,760		–	16,080		–
Transfers between funds		1,024,200		1,438,660		(246,220	)	1,007,026		47,002		–	563,464		–
Surrenders (note 6)		(223,060	)	(16,060	)	(42,594	)	(51,766	)	–		–	(8,354	)	–
Death benefits (note 4)		–		–		(50	)	(16,632	)	–		–	–		–
Net policy repayments (loans) (note 5)		(40,146	)	(9,666	)	(12,664	)	3,054		–		–	(400	)	–
Deductions for surrender charges (note 2d)		(3,312	)	(267	)	(166	)	(673	)	–		–	–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(107,762	)	(37,460	)	(49,820	)	(27,632	)	(1,264	)	–	(7,172	)	–
Asset charges (note 3):
MSP contracts		(734	)	(440	)	(1,866	)	(429	)	(39	)	–	(611	)	–
LSFP contracts		(689	)	(233	)	(827	)	(827	)	(10	)	–	(4	)	–
Adjustments to maintain reserves		(76	)	199		6		96		33		–	71		–
Net equity transactions		916,791		1,481,239		(307,763	)	1,007,699		62,482		–	563,074		–
Net change in contract owners’ equity		1,129,108		1,718,653		(171,042	)	1,184,848		61,945		–	641,644		–
Contract owners’ equity beginning of period		1,887,740		169,087		1,560,326		375,478		–		–	–		–
Contract owners’ equity end of period	$	3,016,848		1,887,740		1,389,284		1,560,326		61,945		–	641,644		–
CHANGES IN UNITS:
Beginning units		115,218		12,709		99,854		28,423		–		–	–		–
Units purchased		75,591		106,989		19,547		77,809		6,425		–	52,129		–
Units redeemed		(20,777	)	(4,480	)	(38,347	)	(6,378	)	(133	)	–	(1,861	)	–
Ending units		170,032		115,218		81,054		99,854		6,292		–	50,268		–

(Continued)

26

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	FrVIPForSec3				GVITDryIntVal				GVITDMidCapI				GVITEmMrkts
Investment activity:	2005			2004	2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	489		–	9,434		10,166		24,676		(11,866	)	(1,453	)	3,973
Realized gain (loss) on investments		2,773		–	123,406		23,527		636,460		478,712		93,446		238,509
Change in unrealized gain (loss) on investments		37,464		–	(63,445	)	150,304		(355,770	)	286,574		292,891		(187,562	)
Reinvested capital gains		–		–	53,106		–		415,044		166,818		193,400		154,636
Net increase (decrease) in contract owners’ equity resulting from operations		40,726		–	122,501		183,997		720,410		920,238		578,284		209,556
Equity transactions:
Purchase payments received from contract owners (note 6)		82,782		–	40,142		83,122		439,202		379,206		43,378		106,916
Transfers between funds		598,340		–	(382,668	)	1,119,622		151,132		(208,152	)	14,646		334,962
Surrenders (note 6)		(17,022	)	–	(174,560	)	(29,572	)	(950,394	)	(370,743	)	(99,968	)	(249,676	)
Death benefits (note 4)		–		–	–		–		(876	)	(24,324	)	–		–
Net policy repayments (loans) (note 5)		(918	)	–	(20,866	)	(23,014	)	82,918		(87,850	)	(39,768	)	3,154
Deductions for surrender charges (note 2d)		(28	)	–	(3,928	)	(489	)	(8,884	)	(11,516	)	(2,288	)	(4,721	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(7,438	)	–	(51,900	)	(27,700	)	(278,424	)	(268,398	)	(90,432	)	(81,474	)
Asset charges (note 3):
MSP contracts		(198	)	–	(679	)	(372	)	(4,804	)	(5,049	)	(938	)	(1,189	)
LSFP contracts		(261	)	–	(237	)	(431	)	(3,397	)	(3,951	)	(986	)	(1,029	)
Adjustments to maintain reserves		90		–	(3,019	)	2,557		(2	)	356		(80	)	281
Net equity transactions		655,347		–	(597,715	)	1,123,723		(573,529	)	(600,421	)	(176,436	)	107,224
Net change in contract owners’ equity		696,073		–	(475,214	)	1,307,720		146,881		319,817		401,848		316,780
Contract owners’ equity beginning of period		–		–	1,518,140		210,420		7,071,536		6,751,719		1,928,987		1,612,207
Contract owners’ equity end of period	$	696,073		–	1,042,926		1,518,140		7,218,417		7,071,536		2,330,835		1,928,987
CHANGES IN UNITS:
Beginning units		–		–	91,502		15,258		533,950		585,904		142,194		142,811
Units purchased		64,552		–	18,401		81,949		171,696		84,218		37,963		55,251
Units redeemed		(2,718	)	–	(53,517	)	(5,705	)	(214,458	)	(136,172	)	(49,567	)	(55,868	)
Ending units		61,834		–	56,386		91,502		491,188		533,950		130,590		142,194

(Continued)

27

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GVITFHiInc					GVITGlFin1				GVITGlHlth				GVITGlTech
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	31,914		30,998		7,534		3,053		(7,197	)	(7,884	)	(5,066	)	(9,013	)
Realized gain (loss) on investments		(17,651	)	3,104		8,751		20,841		23,078		(39,556	)	(81,565	)	45,664
Change in unrealized gain (loss) on investments		(11,541	)	1,341		(21,076	)	22,641		(32,124	)	55,376		42,968		(46,031	)
Reinvested capital gains		–		–		67,106		31,262		88,424		4,166		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		2,722		35,443		62,315		77,797		72,181		12,102		(43,663	)	(9,380	)
Equity transactions:
Purchase payments received from contract owners (note 6)		10,724		93,324		39,184		32,914		54,890		59,664		47,736		186,008
Transfers between funds		(287,434	)	514,170		150,044		99,268		(202,846	)	469,650		(267,874	)	(338,000	)
Surrenders (note 6)		(100,240	)	(63,910	)	(36,400	)	(6,767	)	(124,996	)	(16,305	)	(24,454	)	(152,345	)
Death benefits (note 4)		–		–		–		–		–		(19,378	)	–		(32	)
Net policy repayments (loans) (note 5)		(3,496	)	(10,348	)	7,182		1,396		(52,312	)	(34,896	)	(20,444	)	42,390
Deductions for surrender charges (note 2d)		(1,270	)	(641	)	(466	)	(124	)	(2,604	)	(285	)	(532	)	(2,819	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(25,634	)	(24,318	)	(24,736	)	(18,622	)	(36,958	)	(43,152	)	(42,052	)	(62,196	)
Asset charges (note 3):
MSP contracts		(799	)	(652	)	(99	)	(202	)	(624	)	(818	)	(115	)	(430	)
LSFP contracts		(172	)	(119	)	(144	)	(147	)	(475	)	(512	)	(376	)	(242	)
Adjustments to maintain reserves		(6	)	82		(10	)	123		5		126		(13	)	71
Net equity transactions		(408,327	)	507,588		134,555		107,839		(365,920	)	414,094		(308,124	)	(327,595	)
Net change in contract owners’ equity		(405,605	)	543,031		196,870		185,636		(293,739	)	426,196		(351,787	)	(336,975	)
Contract owners’ equity beginning of period		751,931		208,900		541,752		356,116		1,055,508		629,312		937,006		1,273,981
Contract owners’ equity end of period	$	346,326		751,931		738,622		541,752		761,769		1,055,508		585,219		937,006
CHANGES IN UNITS:
Beginning units		62,024		18,857		37,388		29,492		87,634		56,010		302,962		426,738
Units purchased		3,549		50,816		24,968		10,634		30,026		42,107		34,385		93,708
Units redeemed		(37,563	)	(7,649	)	(16,276	)	(2,738	)	(58,982	)	(10,483	)	(145,821	)	(217,484	)
Ending units		28,010		62,024		46,080		37,388		58,678		87,634		191,526		302,962

(Continued)

28

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GVITGlUtl1					GVITGvtBd				GVITGrowth				GVITIntGro
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	19,748		4,489		363,429		682,063		(104,011	)	(66,326	)	706		886
Realized gain (loss) on investments		89,704		37,735		(176,624	)	(209,367	)	(2,735,024	)	(3,116,950	)	38,855		5,100
Change in unrealized gain (loss) on investments		(229,966	)	54,265		99,562		(428,372	)	3,772,943		4,364,984		69,474		11,025
Reinvested capital gains		195,266		46,716		22,538		298,626		–		–		1,588		–
Net increase (decrease) in contract owners’ equity resulting from operations		74,752		143,205		308,905		342,950		933,908		1,181,708		110,623		17,011
Equity transactions:
Purchase payments received from contract owners (note 6)		109,630		36,290		703,036		1,006,916		2,125,034		2,420,292		15,074		5,288
Transfers between funds		307,898		807,656		(365,628	)	(2,260,102	)	(552,550	)	(849,524	)	453,534		163,264
Surrenders (note 6)		(142,162	)	(12,101	)	(1,291,822	)	(1,685,271	)	(1,200,768	)	(1,371,347	)	(81,924	)	(145	)
Death benefits (note 4)		–		–		(100,232	)	(330,542	)	(76,034	)	(61,054	)	–		–
Net policy repayments (loans) (note 5)		(6,664	)	(458	)	(114,420	)	223,756		19,472		149,202		(23,764	)	(3,314	)
Deductions for surrender charges (note 2d)		(3,028	)	(145	)	(15,586	)	(31,821	)	(45,926	)	(45,401	)	(1,424	)	(2	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(63,040	)	(12,034	)	(630,986	)	(717,200	)	(1,386,344	)	(1,422,256	)	(14,910	)	(7,554	)
Asset charges (note 3):
MSP contracts		(637	)	(196	)	(12,578	)	(14,028	)	(4,544	)	(4,709	)	(229	)	(89	)
LSFP contracts		(951	)	(233	)	(4,419	)	(4,861	)	(9,044	)	(8,832	)	(28	)	(22	)
Adjustments to maintain reserves		50		119		(6,920	)	9,852		1,480		(393	)	88		37
Net equity transactions		201,096		818,898		(1,839,555	)	(3,803,301	)	(1,129,224	)	(1,194,022	)	346,417		157,463
Net change in contract owners’ equity		275,848		962,103		(1,530,650	)	(3,460,351	)	(195,316	)	(12,314	)	457,040		174,474
Contract owners’ equity beginning of period		1,128,032		165,929		12,963,907		16,424,258		17,146,941		17,159,255		255,723		81,249
Contract owners’ equity end of period	$	1,403,880		1,128,032		11,433,257		12,963,907		16,951,625		17,146,941		712,763		255,723
CHANGES IN UNITS:
Beginning units		82,240		15,619		559,802		735,699		1,056,188		1,137,890		34,358		12,282
Units purchased		51,024		69,288		211,849		72,739		244,346		236,511		64,382		25,002
Units redeemed		(36,656	)	(2,667	)	(239,719	)	(248,636	)	(288,234	)	(318,213	)	(25,174	)	(2,926	)
Ending units		96,608		82,240		531,932		559,802		1,012,300		1,056,188		73,566		34,358

(Continued)

29

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GVITSMdCpGr					GVITMyMkt				GVITNWFund				GVITLead
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(8,160	)	(9,995	)	573,998		14,826		148,385		385,234		2,374		(287	)
Realized gain (loss) on investments		58,185		177,103		–		–		(2,531,902	)	(3,508,491	)	11,604		18,968
Change in unrealized gain (loss) on investments		61,864		(5,663	)	–		–		7,142,405		9,344,235		(39,955	)	(7,534	)
Reinvested capital gains		–		–		–		–		–		–		56,438		2,094
Net increase (decrease) in contract owners’ equity resulting from operations		111,889		161,445		573,998		14,826		4,758,888		6,220,978		30,461		13,241
Equity transactions:
Purchase payments received from contract owners (note 6)		54,032		68,408		3,098,610		3,980,268		6,837,524		7,503,374		8,860		32,596
Transfers between funds		19,446		(1,040,164	)	7,508,134		(834,436	)	(1,605,702	)	(2,144,250	)	292,428		14,952
Surrenders (note 6)		(93,482	)	(81,738	)	(11,194,006	)	(9,992,566	)	(4,096,384	)	(4,356,117	)	(74,082	)	–
Death benefits (note 4)		–		–		(356,008	)	(525,790	)	(356,444	)	(462,056	)	–		–
Net policy repayments (loans) (note 5)		(10,446	)	(33,732	)	2,290,152		4,435,022		43,084		(89,138	)	(4,668	)	(5,088	)
Deductions for surrender charges (note 2d)		(1,892	)	(2,255	)	(105,694	)	(223,037	)	(98,438	)	(94,140	)	(172	)	–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(69,030	)	(76,480	)	(1,879,132	)	(1,886,032	)	(5,265,766	)	(5,370,136	)	(10,544	)	(5,630	)
Asset charges (note 3):
MSP contracts		(430	)	(640	)	(24,149	)	(30,803	)	(24,634	)	(26,151	)	(336	)	(45	)
LSFP contracts		(651	)	(700	)	(18,073	)	(20,710	)	(20,184	)	(19,154	)	(12	)	(4	)
Adjustments to maintain reserves		1		(721,648	)	15,000		(22,191	)	(40,828	)	38,325		24		80
Net equity transactions		(102,452	)	(1,888,949	)	(665,166	)	(5,120,275	)	(4,627,772	)	(5,019,443	)	211,498		36,861
Net change in contract owners’ equity		9,437		(1,727,504	)	(91,168	)	(5,105,449	)	131,116		1,201,535		241,959		50,102
Contract owners’ equity beginning of period		1,268,797		2,996,301		26,674,454		31,779,903		74,845,888		73,644,353		169,291		119,189
Contract owners’ equity end of period	$	1,278,234		1,268,797		26,583,286		26,674,454		74,977,004		74,845,888		411,250		169,291
CHANGES IN UNITS:
Beginning units		226,164		613,017		1,778,058		2,142,989		2,310,270		2,521,462		13,742		11,414
Units purchased		74,321		45,410		1,071,035		483,724		576,159		429,659		27,437		7,054
Units redeemed		(90,247	)	(432,263	)	(1,028,001	)	(848,655	)	(636,659	)	(640,851	)	(10,821	)	(4,726	)
Ending units		210,238		226,164		1,821,092		1,778,058		2,249,770		2,310,270		30,358		13,742

(Continued)

30

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GVITSmCapGr					GVITSmCapVal				GVITSmComp				GVITTGroFoc
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(9,083	)	(10,577	)	(84,819	)	(103,939	)	(187,960	)	(185,854	)	–		(1,480	)
Realized gain (loss) on investments		132,806		106,456		1,337,766		2,227,969		727,928		741,643		–		97,783
Change in unrealized gain (loss) on investments		(49,894	)	82,462		(2,634,618	)	(1,098,406	)	(995,207	)	733,177		–		(76,678	)
Reinvested capital gains		–		–		1,564,872		1,045,306		3,550,094		3,163,878		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		73,829		178,341		183,201		2,070,930		3,094,855		4,452,844		–		19,625
Equity transactions:
Purchase payments received from contract owners (note 6)		64,152		97,852		642,074		983,040		1,457,404		1,501,060		148		30,074
Transfers between funds		(534,830	)	158,032		(647,828	)	(974,418	)	270,824		(1,666,148	)	(18	)	(662,670	)
Surrenders (note 6)		(96,302	)	(96,487	)	(838,592	)	(1,561,609	)	(1,681,274	)	(1,926,595	)	–		(12,623	)
Death benefits (note 4)		(30	)	(2,000	)	(17,284	)	(8,604	)	(79,856	)	(67,214	)	–		–
Net policy repayments (loans) (note 5)		(57,338	)	(1,510	)	(131,392	)	92,882		(51,224	)	(100,620	)	(124	)	(11,088	)
Deductions for surrender charges (note 2d)		(1,110	)	(3,446	)	(10,918	)	(29,758	)	(38,284	)	(48,364	)	–		(164	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(76,020	)	(79,462	)	(512,442	)	(576,466	)	(1,257,290	)	(1,257,388	)	(8	)	(11,168	)
Asset charges (note 3):
MSP contracts		(985	)	(551	)	(8,307	)	(9,432	)	(15,783	)	(14,551	)	–		(83	)
LSFP contracts		(1,086	)	(1,199	)	(11,286	)	(11,986	)	(14,861	)	(13,521	)	–		(188	)
Adjustments to maintain reserves		(6	)	160		2,355		755		272,757		(1,241	)	2		2
Net equity transactions		(703,555	)	71,389		(1,533,620	)	(2,095,596	)	(1,137,587	)	(3,594,582	)	–		(667,908	)
Net change in contract owners’ equity		(629,726	)	249,730		(1,350,419	)	(24,666	)	1,957,268		858,262		–		(648,283	)
Contract owners’ equity beginning of period		1,890,749		1,641,019		14,983,774		15,008,440		28,221,725		27,363,463		–		648,283
Contract owners’ equity end of period	$	1,261,023		1,890,749		13,633,355		14,983,774		30,178,993		28,221,725		–		–
CHANGES IN UNITS:
Beginning units		265,602		260,132		746,406		872,565		925,912		1,062,343		–		198,969
Units purchased		49,153		49,869		224,334		144,889		190,821		124,727		853		8,546
Units redeemed		(150,055	)	(44,399	)	(290,730	)	(271,048	)	(207,721	)	(261,158	)	(853	)	(207,515	)
Ending units		164,700		265,602		680,010		746,406		909,012		925,912		–		–

(Continued)

31

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GVITUSGro					GVITVKMultiSec				GVITCVal				GVITDryIntVal3
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(6,036	)	(6,707	)	35,376		47,933		7,161		2,734		3,888		–
Realized gain (loss) on investments		24,938		(36,682	)	7,465		11,062		33,920		8,948		614		–
Change in unrealized gain (loss) on investments		(91,765	)	78,876		(34,567	)	(2,839	)	(30,719	)	47,320		70,712		–
Reinvested capital gains		161,958		43,050		5,570		–		20,414		–		11,850		–
Net increase (decrease) in contract owners’ equity resulting from operations		89,095		78,537		13,844		56,156		30,776		59,002		87,064		–
Equity transactions:
Purchase payments received from contract owners (note 6)		20,500		93,866		54,556		66,512		68,698		31,332		88,134		–
Transfers between funds		151,248		(223,028	)	(55,206	)	55,642		234,646		382,380		845,398		–
Surrenders (note 6)		(124,464	)	(46,028	)	(164,012	)	(177,833	)	(57,654	)	(13,645	)	(1,262	)	–
Death benefits (note 4)		–		(30,522	)	–		–		–		–		–		–
Net policy repayments (loans) (note 5)		25,118		7,548		20,336		(4,728	)	864		1,954		(11,818	)	–
Deductions for surrender charges (note 2d)		(1,082	)	(531	)	(3,366	)	(3,103	)	(270	)	(116	)	(8	)	–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(31,880	)	(35,240	)	(47,972	)	(48,846	)	(36,178	)	(17,250	)	(11,126	)	–
Asset charges (note 3):
MSP contracts		(173	)	(149	)	(1,034	)	(895	)	(17	)	(14	)	(152	)	–
LSFP contracts		(231	)	(267	)	(634	)	(511	)	(330	)	(113	)	(86	)	–
Adjustments to maintain reserves		(236	)	(10,401	)	21		147		44		97		114		–
Net equity transactions		38,800		(244,752	)	(197,311	)	(113,615	)	209,803		384,625		909,194		–
Net change in contract owners’ equity		127,895		(166,215	)	(183,467	)	(57,459	)	240,579		443,627		996,258		–
Contract owners’ equity beginning of period		878,882		1,045,097		1,211,110		1,268,569		573,261		129,634		–		–
Contract owners’ equity end of period	$	1,006,777		878,882		1,027,643		1,211,110		813,840		573,261		996,258		–
CHANGES IN UNITS:
Beginning units		63,712		84,662		89,396		99,033		38,956		10,283		–		–
Units purchased		26,621		16,545		14,376		18,043		21,993		30,754		91,263		–
Units redeemed		(24,719	)	(37,495	)	(29,322	)	(27,680	)	(7,631	)	(2,081	)	(3,931	)	–
Ending units		65,614		63,712		74,450		89,396		53,318		38,956		87,332		–

(Continued)

32

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GVITEmMrkts3				GVITFHiInc3			GVITGlHlth3			GVITGlTech3
Investment activity:	2005			2004	2005		2004	2005		2004	2005		2004
Net investment income (loss)	$	(692	)	–	7,547		–	(882	)	–	(558	)	–
Realized gain (loss) on investments		9,394		–	494		–	858		–	1,637		–
Change in unrealized gain (loss) on investments		34,834		–	(4,029	)	–	(31,731	)	–	16,348		–
Reinvested capital gains		104,312		–	–		–	41,196		–	–		–
Net increase (decrease) in contract owners’ equity resulting from operations		147,848		–	4,012		–	9,441		–	17,427		–
Equity transactions:
Purchase payments received from contract owners (note 6)		74,318		–	93,216		–	32,238		–	44,160		–
Transfers between funds		1,253,186		–	72,750		–	396,302		–	318,266		–
Surrenders (note 6)		(28,716	)	–	(734	)	–	(12,484	)	–	(182	)	–
Death benefits (note 4)		–		–	–		–	–		–	–		–
Net policy repayments (loans) (note 5)		17,840		–	1,294		–	13,346		–	14,038		–
Deductions for surrender charges (note 2d)		(238	)	–	(2	)	–	(24	)	–	(10	)	–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(14,816	)	–	(6,442	)	–	(5,622	)	–	(4,928	)	–
Asset charges (note 3):
MSP contracts		(189	)	–	(53	)	–	(17	)	–	–		–
LSFP contracts		(330	)	–	(23	)	–	–		–	(38	)	–
Adjustments to maintain reserves		95		–	72		–	48		–	160		–
Net equity transactions		1,301,150		–	160,078		–	423,787		–	371,466		–
Net change in contract owners’ equity		1,448,998		–	164,090		–	433,228		–	388,893		–
Contract owners’ equity beginning of period		–		–	–		–	–		–	–		–
Contract owners’ equity end of period	$	1,448,998		–	164,090		–	433,228		–	388,893		–
CHANGES IN UNITS:
Beginning units		–		–	–		–	–		–	–		–
Units purchased		111,672		–	19,348		–	41,388		–	32,305		–
Units redeemed		(2,626	)	–	(3,718	)	–	(886	)	–	(615	)	–
Ending units		109,046		–	15,630		–	40,502		–	31,690		–

(Continued)

33

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GVITIDAgg					GVITIDCon				GVITIDMod				GVITIDModAgg
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	21,630		11,082		12,518		9,015		89,651		54,319		66,893		36,384
Realized gain (loss) on investments		91,653		33,335		5,406		12,643		114,999		67,380		178,974		63,452
Change in unrealized gain (loss) on investments		(4,619	)	71,983		(15,757	)	(2,310	)	(43,991	)	189,320		(41,664	)	223,424
Reinvested capital gains		35,342		27,300		13,526		5,140		93,246		19,510		102,524		48,204
Net increase (decrease) in contract owners’ equity resulting from operations		144,006		143,700		15,693		24,488		253,905		330,529		306,727		371,464
Equity transactions:
Purchase payments received from contract owners (note 6)		157,642		116,778		48,316		24,908		418,850		355,834		392,234		411,256
Transfers between funds		636,636		816,808		(36,184	)	243,122		1,074,126		2,034,482		1,142,442		1,517,198
Surrenders (note 6)		(399,694	)	(198,704	)	(19,258	)	(39,863	)	(351,472	)	(171,362	)	(206,032	)	(68,638	)
Death benefits (note 4)		–		–		–		–		(1,148	)	–		(80,942	)	–
Net policy repayments (loans) (note 5)		145,236		(12,542	)	7,482		(418	)	64,184		11,084		(78,268	)	21,058
Deductions for surrender charges (note 2d)		(2,106	)	(732	)	(408	)	(20	)	(9,268	)	(621	)	(3,466	)	(924	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(69,670	)	(50,690	)	(28,918	)	(23,128	)	(284,726	)	(202,360	)	(296,694	)	(217,050	)
Asset charges (note 3):
MSP contracts		(14	)	(9	)	(265	)	(447	)	(5,493	)	(4,064	)	(1,615	)	(933	)
LSFP contracts		–		–		(109	)	(39	)	(724	)	(617	)	(900	)	(642	)
Adjustments to maintain reserves		21		87		25		61		20		183		(102	)	179
Net equity transactions		468,051		670,996		(29,319	)	204,176		904,349		2,022,559		866,657		1,661,504
Net change in contract owners’ equity		612,057		814,696		(13,626	)	228,664		1,158,254		2,353,088		1,173,384		2,032,968
Contract owners’ equity beginning of period		1,311,551		496,855		609,937		381,273		4,823,102		2,470,014		4,107,584		2,074,616
Contract owners’ equity end of period	$	1,923,608		1,311,551		596,311		609,937		5,981,356		4,823,102		5,280,968		4,107,584
CHANGES IN UNITS:
Beginning units		106,736		45,926		54,920		35,654		409,194		228,410		340,366		191,327
Units purchased		82,019		84,874		17,854		26,633		170,263		217,965		143,297		178,077
Units redeemed		(42,677	)	(24,064	)	(20,396	)	(7,367	)	(95,317	)	(37,181	)	(72,291	)	(29,038	)
Ending units		146,078		106,736		52,378		54,920		484,140		409,194		411,372		340,366

(Continued)

34

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GVITIDModCon					JanBal				JanCapAp				JanGlTech
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	37,727		22,719		3,290		1,422		(16,462	)	(16,818	)	(7,187	)	(8,182	)
Realized gain (loss) on investments		44,205		20,445		869		637		203,945		181,446		96,191		73,598
Change in unrealized gain (loss) on investments		(45,321	)	55,620		11,177		4,089		86,853		200,822		20,130		(70,981	)
Reinvested capital gains		40,334		7,790		–		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		76,945		106,574		15,336		6,148		274,336		365,450		109,134		(5,565	)
Equity transactions:
Purchase payments received from contract owners (note 6)		208,524		76,060		6,342		10,398		183,122		219,742		101,390		114,866
Transfers between funds		565,274		1,019,982		115,096		55,766		72,786		(201,086	)	(69,038	)	(57,688	)
Surrenders (note 6)		(28,196	)	(9,847	)	(2,538	)	(4,206	)	(199,394	)	(228,302	)	(25,024	)	(124,635	)
Death benefits (note 4)		(211,024	)	–		–		–		(4,622	)	(1,046	)	(3,500	)	(3,682	)
Net policy repayments (loans) (note 5)		1,878		(16,580	)	(360	)	–		(54,628	)	7,202		(15,226	)	(43,396	)
Deductions for surrender charges (note 2d)		(736	)	(108	)	–		(55	)	(2,784	)	(12,387	)	(342	)	(2,916	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(81,718	)	(59,032	)	(5,420	)	(1,798	)	(119,602	)	(129,148	)	(53,312	)	(64,060	)
Asset charges (note 3):
MSP contracts		(1,044	)	(2,435	)	(401	)	(40	)	(1,888	)	(1,595	)	(616	)	(700	)
LSFP contracts		(17	)	(90	)	–		–		(1,478	)	(1,379	)	(889	)	(1,047	)
Adjustments to maintain reserves		20		120		(2	)	42		(42	)	141		18		58
Net equity transactions		452,961		1,008,070		112,717		60,107		(128,530	)	(347,858	)	(66,539	)	(183,200	)
Net change in contract owners’ equity		529,906		1,114,644		128,053		66,255		145,806		17,592		42,595		(188,765	)
Contract owners’ equity beginning of period		1,818,334		703,690		94,211		27,956		2,518,000		2,500,408		1,140,979		1,329,744
Contract owners’ equity end of period	$	2,348,240		1,818,334		222,264		94,211		2,663,806		2,518,000		1,183,574		1,140,979
CHANGES IN UNITS:
Beginning units		158,844		64,892		7,980		2,548		351,590		409,213		318,846		371,145
Units purchased		71,917		108,440		10,287		5,983		76,865		54,006		77,013		50,531
Units redeemed		(32,349	)	(14,488	)	(731	)	(551	)	(96,963	)	(111,629	)	(99,057	)	(102,830	)
Ending units		198,412		158,844		17,536		7,980		331,492		351,590		296,802		318,846

(Continued)

35

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	JanIntGro					JanRMgLgCap				MFSVITInvGrwI				MFSVITValIn
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	9,165		1,396		1,573		555		(889	)	(1,241	)	21		(239	)
Realized gain (loss) on investments		268,467		205,854		4,248		341		7,919		986		9,662		3,050
Change in unrealized gain (loss) on investments		291,505		46,089		(20,802	)	894		9,290		16,004		4,912		13,100
Reinvested capital gains		–		–		41,532		5,250		–		–		5,236		842
Net increase (decrease) in contract owners’ equity resulting from operations		569,137		253,339		26,551		7,040		16,320		15,749		19,831		16,753
Equity transactions:
Purchase payments received from contract owners (note 6)		128,112		140,402		19,358		5,478		27,122		15,306		24,214		9,032
Transfers between funds		738,664		(80,274	)	145,336		73,042		54,014		189,424		145,716		134,988
Surrenders (note 6)		(100,680	)	(133,375	)	(14,380	)	(599	)	(23,910	)	(4,306	)	(7,942	)	(19,256	)
Death benefits (note 4)		(3,574	)	(1,112	)	–		–		–		–		–		–
Net policy repayments (loans) (note 5)		(122,300	)	(28,212	)	(930	)	(1,902	)	(2,476	)	(928	)	(3,332	)	1,942
Deductions for surrender charges (note 2d)		(1,488	)	(3,119	)	(242	)	(8	)	(142	)	(127	)	(462	)	(333	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(91,098	)	(85,374	)	(12,036	)	(2,700	)	(17,532	)	(12,200	)	(10,682	)	(3,932	)
Asset charges (note 3):
MSP contracts		(744	)	(810	)	(90	)	–		–		–		(56	)	(29	)
LSFP contracts		(1,797	)	(1,230	)	–		–		(42	)	(95	)	(205	)	(110	)
Adjustments to maintain reserves		32		99		38		59		(2	)	86		53		56
Net equity transactions		545,127		(193,005	)	137,054		73,370		37,032		187,160		147,304		122,358
Net change in contract owners’ equity		1,114,264		60,334		163,605		80,410		53,352		202,909		167,135		139,111
Contract owners’ equity beginning of period		1,782,207		1,721,873		88,352		7,942		258,492		55,583		182,812		43,701
Contract owners’ equity end of period	$	2,896,471		1,782,207		251,957		88,352		311,844		258,492		349,947		182,812
CHANGES IN UNITS:
Beginning units		255,024		291,169		6,186		649		20,652		4,816		12,970		3,551
Units purchased		141,436		41,327		12,211		5,915		9,922		17,442		12,042		11,128
Units redeemed		(84,014	)	(77,472	)	(2,395	)	(378	)	(6,590	)	(1,606	)	(1,604	)	(1,709	)
Ending units		312,446		255,024		16,002		6,186		23,984		20,652		23,408		12,970

(Continued)

36

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	NBAMTInt				NBAMTReg			NBAMTBal				NBAMTGro
Investment activity:	2005			2004	2005		2004	2005		2004		2005		2004
Net investment income (loss)	$	(114	)	–	(171	)	–	109		350		(114,795	)	(122,271	)
Realized gain (loss) on investments		(56	)	–	109		–	1,738		904		829,726		(65,787	)
Change in unrealized gain (loss) on investments		40,524		–	3,213		–	637		4,443		1,131,493		2,575,966
Reinvested capital gains		3,464		–	–		–	–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		43,818		–	3,151		–	2,484		5,697		1,846,424		2,387,908
Equity transactions:
Purchase payments received from contract owners (note 6)		2,266		–	4,370		–	2,420		2,606		1,271,972		1,422,100
Transfers between funds		670,592		–	80,522		–	9,052		4,666		(1,072,358	)	(437,744	)
Surrenders (note 6)		(938	)	–	(46	)	–	(15,950	)	(29,767	)	(1,526,768	)	(1,321,082	)
Death benefits (note 4)		–		–	–		–	–		–		(121,564	)	(84,216	)
Net policy repayments (loans) (note 5)		–		–	(62	)	–	76		278		55,140		66,888
Deductions for surrender charges (note 2d)		–		–	–		–	(350	)	(460	)	(27,324	)	(30,080	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(1,652	)	–	(696	)	–	(2,260	)	(3,114	)	(969,830	)	(972,086	)
Asset charges (note 3):
MSP contracts		(64	)	–	–		–	–		–		(2,851	)	(2,886	)
LSFP contracts		(19	)	–	(17	)	–	–		–		(6,410	)	(5,895	)
Adjustments to maintain reserves		33		–	29		–	45		19		(20,500	)	20,840
Net equity transactions		670,218		–	84,100		–	(6,967	)	(25,772	)	(2,420,493	)	(1,344,161	)
Net change in contract owners’ equity		714,036		–	87,251		–	(4,483	)	(20,075	)	(574,069	)	1,043,747
Contract owners’ equity beginning of period		–		–	–		–	48,092		68,167		17,245,059		16,201,312
Contract owners’ equity end of period	$	714,036		–	87,251		–	43,609		48,092		16,670,990		17,245,059
CHANGES IN UNITS:
Beginning units		–		–	–		–	2,306		3,415		730,188		821,615
Units purchased		61,230		–	7,574		–	848		383		361,914		134,685
Units redeemed		(154	)	–	(72	)	–	(848	)	(1,492	)	(337,996	)	(226,112	)
Ending units		61,076		–	7,502		–	2,306		2,306		754,106		730,188

(Continued)

37

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	NBAMTGuard					NBAMTLMat				NBAMTPart				NBAMTSocRes
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(9,613	)	(10,008	)	89,799		173,093		95,725		(134,882	)	(1,548	)	(810	)
Realized gain (loss) on investments		241,921		141,283		(78,403	)	2,068		935,379		211,699		22,056		1,132
Change in unrealized gain (loss) on investments		(74,766	)	151,481		21,009		(172,376	)	2,841,210		3,414,183		(11,609	)	18,249
Reinvested capital gains		–		–		–		–		5,916		–		344		–
Net increase (decrease) in contract owners’ equity resulting from operations		157,542		282,756		32,405		2,785		3,878,230		3,491,000		9,243		18,571
Equity transactions:
Purchase payments received from contract owners (note 6)		107,446		148,296		225,792		297,222		1,593,968		1,811,132		13,606		108,636
Transfers between funds		(338,946	)	53,930		(836,846	)	(36,250	)	2,194,314		(318,362	)	8,030		100,258
Surrenders (note 6)		(46,544	)	(92,306	)	(798,462	)	(719,031	)	(1,285,982	)	(1,489,288	)	(93,274	)	–
Death benefits (note 4)		(850	)	–		(40	)	(279,808	)	(90,206	)	(163,254	)	–		–
Net policy repayments (loans) (note 5)		(55,134	)	(27,708	)	60,978		212,060		(134,670	)	(174,578	)	(10,538	)	(12	)
Deductions for surrender charges (note 2d)		(1,098	)	(2,357	)	(27,730	)	(8,138	)	(28,382	)	(71,638	)	–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(90,028	)	(88,002	)	(173,380	)	(210,888	)	(1,203,698	)	(1,120,926	)	(7,764	)	(3,546	)
Asset charges (note 3):
MSP contracts		(1,502	)	(1,260	)	(5,400	)	(4,235	)	(14,116	)	(12,080	)	(64	)	(34	)
LSFP contracts		(1,668	)	(1,576	)	(1,717	)	(1,935	)	(22,397	)	(18,835	)	(18	)	–
Adjustments to maintain reserves		2		117		(406	)	4,711		11,046		150,638		22		55
Net equity transactions		(428,322	)	(10,866	)	(1,557,211	)	(746,292	)	1,019,877		(1,407,191	)	(90,000	)	205,357
Net change in contract owners’ equity		(270,780	)	271,890		(1,524,806	)	(743,507	)	4,898,107		2,083,809		(80,757	)	223,928
Contract owners’ equity beginning of period		2,231,057		1,959,167		5,513,675		6,257,182		22,444,856		20,361,047		264,464		40,536
Contract owners’ equity end of period	$	1,960,277		2,231,057		3,988,869		5,513,675		27,342,963		22,444,856		183,707		264,464
CHANGES IN UNITS:
Beginning units		193,216		195,762		304,988		352,066		842,520		903,543		19,112		3,293
Units purchased		27,210		39,197		86,624		49,406		253,312		148,097		6,113		16,107
Units redeemed		(62,788	)	(41,743	)	(156,354	)	(96,484	)	(177,248	)	(209,120	)	(12,761	)	(288	)
Ending units		157,638		193,216		235,258		304,988		918,584		842,520		12,464		19,112

(Continued)

38

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	NBAMTFasc					NBAMTMCGrS				OppAggGro				OppCapAp
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(632	)	(241	)	(1,542	)	(1,734	)	(14,677	)	(15,105	)	29,698		(58,392	)
Realized gain (loss) on investments		1,761		466		47,042		15,460		265,782		76,047		824,220		322,087
Change in unrealized gain (loss) on investments		1,137		5,792		2,625		20,124		(73,853	)	268,323		(343,491	)	548,435
Reinvested capital gains		572		152		–		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		2,838		6,169		48,125		33,850		177,252		329,265		510,427		812,130
Equity transactions:
Purchase payments received from contract owners (note 6)		8,162		6,350		23,360		26,634		147,500		221,836		873,822		1,223,634
Transfers between funds		968		95,586		(31,402	)	39,838		(274,800	)	44,672		(1,112,944	)	(1,165,538	)
Surrenders (note 6)		(364	)	(14,167	)	(12,588	)	(90,743	)	(174,922	)	(45,473	)	(911,922	)	(740,992	)
Death benefits (note 4)		–		–		–		–		(8,766	)	(34,534	)	(7,502	)	(50,554	)
Net policy repayments (loans) (note 5)		114		13,390		252		(19,292	)	(10,654	)	(17,348	)	(8,372	)	(63,270	)
Deductions for surrender charges (note 2d)		(12	)	(184	)	–		(43	)	(3,076	)	(2,370	)	(24,374	)	(30,565	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(8,144	)	(2,746	)	(12,258	)	(11,196	)	(120,362	)	(120,132	)	(653,916	)	(735,336	)
Asset charges (note 3):
MSP contracts		(60	)	(29	)	(55	)	(37	)	(721	)	(1,039	)	(4,960	)	(5,222	)
LSFP contracts		(18	)	–		(392	)	(319	)	(576	)	(545	)	(6,231	)	(6,153	)
Adjustments to maintain reserves		55		43		(5	)	113		(158	)	201		(338	)	729
Net equity transactions		701		98,243		(33,088	)	(55,045	)	(446,535	)	45,268		(1,856,737	)	(1,573,267	)
Net change in contract owners’ equity		3,539		104,412		15,037		(21,195	)	(269,283	)	374,533		(1,346,310	)	(761,137	)
Contract owners’ equity beginning of period		115,122		10,710		250,861		272,056		2,204,229		1,829,696		14,276,835		15,037,972
Contract owners’ equity end of period	$	118,661		115,122		265,898		250,861		1,934,946		2,204,229		12,930,525		14,276,835
CHANGES IN UNITS:
Beginning units		8,244		854		17,720		22,177		390,550		385,863		916,154		1,025,550
Units purchased		3,059		7,673		5,934		13,917		62,529		109,911		248,511		149,997
Units redeemed		(3,017	)	(283	)	(6,998	)	(18,374	)	(144,245	)	(105,224	)	(318,381	)	(259,393	)
Ending units		8,286		8,244		16,656		17,720		308,834		390,550		846,284		916,154

(Continued)

39

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	OppGlSec					OppHighInc				OppMSFund				OppMSSmCap
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	135,727		170,282		40,432		20,029		9,719		2,590		(4,033	)	(2,876	)
Realized gain (loss) on investments		1,456,861		(146,798	)	6,196		6,132		73,904		71,154		27,197		34,052
Change in unrealized gain (loss) on investments		2,816,700		5,762,698		(35,276	)	26,739		(4,654	)	46,372		16,728		41,925
Reinvested capital gains		–		–		–		–		–		–		13,920		–
Net increase (decrease) in contract owners’ equity resulting from operations		4,409,288		5,786,182		11,352		52,900		78,969		120,116		53,812		73,101
Equity transactions:
Purchase payments received from contract owners (note 6)		655,236		2,032,224		45,286		44,568		104,358		121,866		47,892		43,982
Transfers between funds		(1,906,256	)	534,826		(30,540	)	346,876		439,782		187,100		112,184		33,862
Surrenders (note 6)		(2,043,212	)	(2,425,284	)	(91,762	)	(18,234	)	(219,672	)	(143,536	)	(21,312	)	(41,329	)
Death benefits (note 4)		(12,008	)	(90,694	)	–		–		–		–		–		(24,258	)
Net policy repayments (loans) (note 5)		(596,226	)	(133,226	)	(22,672	)	(23,832	)	(44,696	)	(276	)	(6,416	)	1,010
Deductions for surrender charges (note 2d)		(33,896	)	(60,616	)	(2,040	)	(322	)	(2,496	)	(3,173	)	(216	)	(430	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(1,407,740	)	(1,453,212	)	(23,802	)	(21,854	)	(69,568	)	(65,446	)	(24,324	)	(18,740	)
Asset charges (note 3):
MSP contracts		(13,732	)	(12,749	)	(732	)	(754	)	(1,063	)	(1,585	)	(142	)	(178	)
LSFP contracts		(11,136	)	(9,658	)	(308	)	(237	)	(1,048	)	(1,008	)	(53	)	(21	)
Adjustments to maintain reserves		1,779		3,026		44		88		(71	)	183		57		106
Net equity transactions		(5,367,191	)	(1,615,363	)	(126,526	)	326,299		205,526		94,125		107,670		(5,996	)
Net change in contract owners’ equity		(957,903	)	4,170,819		(115,174	)	379,199		284,495		214,241		161,482		67,105
Contract owners’ equity beginning of period		37,051,443		32,880,624		691,369		312,170		1,644,500		1,430,259		470,868		403,763
Contract owners’ equity end of period	$	36,093,540		37,051,443		576,195		691,369		1,928,995		1,644,500		632,350		470,868
CHANGES IN UNITS:
Beginning units		1,094,866		1,150,008		57,270		28,013		185,346		175,119		28,790		29,251
Units purchased		280,077		254,793		12,996		34,681		85,392		57,917		9,829		6,754
Units redeemed		(345,931	)	(309,935	)	(23,378	)	(5,424	)	(65,472	)	(47,690	)	(3,215	)	(7,215	)
Ending units		1,029,012		1,094,866		46,888		57,270		205,266		185,346		35,404		28,790

(Continued)

40

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	OppMultStr					OppGlSec3			OppBdFd				PVTGroInc
Investment activity:	2005			2004		2005		2004	2005		2004		2005		2004
Net investment income (loss)	$	153,996		37,791		(7,511	)	–	555,683		530,582		874		766
Realized gain (loss) on investments		58,011		5,026		12,271		–	5,790		9,317		4,234		2,429
Change in unrealized gain (loss) on investments		(289,228	)	1,342,038		286,506		–	(330,503	)	46,534		(87	)	5,108
Reinvested capital gains		525,540		–		–		–	–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		448,319		1,384,855		291,266		–	230,970		586,433		5,021		8,303
Equity transactions:
Purchase payments received from contract owners (note 6)		814,120		1,078,916		1,150,944		–	765,224		901,146		4,690		3,164
Transfers between funds		(1,510,072	)	197,728		1,553,416		–	(349,990	)	(379,158	)	51,834		57,970
Surrenders (note 6)		(708,646	)	(1,310,498	)	(199,424	)	–	(1,329,182	)	(859,561	)	(22,422	)	(786	)
Death benefits (note 4)		(61,648	)	(50,442	)	(6,350	)	–	(8,662	)	(206,078	)	–		–
Net policy repayments (loans) (note 5)		(24,094	)	(99,578	)	255,630		–	116,484		(196,780	)	(2	)	–
Deductions for surrender charges (note 2d)		(18,606	)	(19,981	)	(906	)	–	(14,108	)	(26,725	)	(778	)	(10	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(669,256	)	(720,680	)	(68,940	)	–	(540,300	)	(612,690	)	(5,558	)	(4,220	)
Asset charges (note 3):
MSP contracts		(9,239	)	(9,268	)	(860	)	–	(8,128	)	(8,648	)	–		–
LSFP contracts		(3,920	)	(3,641	)	(396	)	–	(6,051	)	(6,365	)	(111	)	(143	)
Adjustments to maintain reserves		(7,348	)	6,181		275		–	(1,476	)	5,975		34		42
Net equity transactions		(2,198,709	)	(931,263	)	2,683,389		–	(1,376,189	)	(1,388,884	)	27,687		56,017
Net change in contract owners’ equity		(1,750,390	)	453,592		2,974,655		–	(1,145,219	)	(802,451	)	32,708		64,320
Contract owners’ equity beginning of period		15,858,615		15,405,023		–		–	12,399,148		13,201,599		79,274		14,954
Contract owners’ equity end of period	$	14,108,225		15,858,615		2,974,655		–	11,253,929		12,399,148		111,982		79,274
CHANGES IN UNITS:
Beginning units		515,596		549,203		–		–	538,742		607,217		5,796		1,210
Units purchased		235,916		81,077		264,357		–	123,487		91,514		4,153		4,994
Units redeemed		(228,310	)	(114,684	)	(16,661	)	–	(168,031	)	(159,989	)	(2,105	)	(408	)
Ending units		523,202		515,596		247,696		–	494,198		538,742		7,844		5,796

(Continued)

41

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	PVTIntEq					PVTVoyII				TRPBluChpGrII			TRowEqInc2
Investment activity:	2005			2004		2005		2004		2005		2004	2005		2004
Net investment income (loss)	$	772		878		182		(78	)	(6	)	–	1,414		–
Realized gain (loss) on investments		18,426		5,777		795		100		168		–	2,420		–
Change in unrealized gain (loss) on investments		9,869		8,163		3,168		1,982		1,009		–	(9,434	)	–
Reinvested capital gains		–		–		–		–		–		–	12,064		–
Net increase (decrease) in contract owners’ equity resulting from operations		29,067		14,818		4,145		2,004		1,171		–	6,464		–
Equity transactions:
Purchase payments received from contract owners (note 6)		7,090		22,980		3,564		14,440		1,292		–	12,674		–
Transfers between funds		171,922		62,948		52,596		23,716		242,994		–	311,286		–
Surrenders (note 6)		(11,238	)	(9,097	)	(2,990	)	–		–		–	–		–
Death benefits (note 4)		–		(16,252	)	–		–		–		–	–		–
Net policy repayments (loans) (note 5)		(1,574	)	20		(34	)	–		–		–	46		–
Deductions for surrender charges (note 2d)		(26	)	(124	)	–		–		–		–	–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(7,460	)	(5,228	)	(3,374	)	(1,682	)	(3,320	)	–	(5,266	)	–
Asset charges (note 3):
MSP contracts		(63	)	–		(190	)	(84	)	(42	)	–	–		–
LSFP contracts		(4	)	–		(108	)	(62	)	(50	)	–	(133	)	–
Adjustments to maintain reserves		(8	)	67		–		82		44		–	54		–
Net equity transactions		158,639		55,314		49,464		36,410		240,918		–	318,661		–
Net change in contract owners’ equity		187,706		70,132		53,609		38,414		242,089		–	325,125		–
Contract owners’ equity beginning of period		132,907		62,775		53,509		15,095		–		–	–		–
Contract owners’ equity end of period	$	320,613		132,907		107,118		53,509		242,089		–	325,125		–
CHANGES IN UNITS:
Beginning units		9,052		4,931		4,322		1,280		–		–	–		–
Units purchased		11,550		6,455		4,455		3,319		21,801		–	31,225		–
Units redeemed		(988	)	(2,334	)	(543	)	(277	)	(309	)	–	(527	)	–
Ending units		19,614		9,052		8,234		4,322		21,492		–	30,698		–

(Continued)

42

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	TRLimTrmBnd2				VEWrldBd				VEWrldEMkt				VEWrldHAs
Investment activity:	2005			2004	2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	164		–	234,470		318,281		5,720		(5,121	)	(33,271	)	(21,702	)
Realized gain (loss) on investments		(1	)	–	(27,287	)	9,612		696,415		708,751		1,358,582		535,736
Change in unrealized gain (loss) on investments		(62	)	–	(346,641	)	(13,258	)	1,334,255		452,466		1,986,081		666,602
Reinvested capital gains		–		–	–		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		101		–	(139,458	)	314,635		2,036,390		1,156,096		3,311,392		1,180,636
Equity transactions:
Purchase payments received from contract owners (note 6)		98		–	149,562		187,640		353,284		358,934		621,334		378,056
Transfers between funds		34,504		–	(374,642	)	(752,214	)	1,107,540		147,794		1,387,764		559,764
Surrenders (note 6)		–		–	(215,630	)	(440,910	)	(376,808	)	(757,540	)	(991,560	)	(457,841	)
Death benefits (note 4)		–		–	(11,218	)	(126,398	)	(7,398	)	(12,234	)	(39,474	)	(22,680	)
Net policy repayments (loans) (note 5)		(10	)	–	(9,374	)	243,984		(48,756	)	(4,256	)	(33,512	)	(11,024	)
Deductions for surrender charges (note 2d)		–		–	(2,308	)	(7,794	)	(11,754	)	(12,080	)	(10,622	)	(5,285	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(178	)	–	(153,478	)	(179,718	)	(282,468	)	(247,600	)	(345,372	)	(264,062	)
Asset charges (note 3):
MSP contracts		–		–	(1,329	)	(1,408	)	(3,275	)	(2,494	)	(5,608	)	(3,385	)
LSFP contracts		–		–	(596	)	(729	)	(6,149	)	(4,567	)	(1,890	)	(1,484	)
Adjustments to maintain reserves		32		–	(745	)	(38,437	)	(653	)	(5,705	)	7,525		(7,896	)
Net equity transactions		34,446		–	(619,758	)	(1,115,984	)	723,563		(539,748	)	588,585		164,163
Net change in contract owners’ equity		34,547		–	(759,216	)	(801,349	)	2,759,953		616,348		3,899,977		1,344,799
Contract owners’ equity beginning of period		–		–	3,865,200		4,666,549		6,190,315		5,573,967		6,555,127		5,210,328
Contract owners’ equity end of period	$	34,547		–	3,105,984		3,865,200		8,950,268		6,190,315		10,455,104		6,555,127
CHANGES IN UNITS:
Beginning units		–		–	186,970		248,334		517,510		582,778		302,712		288,700
Units purchased		3,446		–	77,210		43,903		173,072		74,842		153,010		82,927
Units redeemed		(18	)	–	(97,076	)	(105,267	)	(128,228	)	(140,110	)	(108,504	)	(68,915	)
Ending units		3,428		–	167,104		186,970		562,354		517,510		347,218		302,712

(Continued)

43

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	VKoreFI					VKEmMkt				VKUSRealEst				StDisc2
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	7,542		4,746		176,187		146,343		99,923		125,187		(54,490	)	(57,587	)
Realized gain (loss) on investments		(442	)	430		34,234		72,756		1,909,179		1,117,091		289,653		296,424
Change in unrealized gain (loss) on investments		246		(110	)	24,829		(96,117	)	366,974		3,194,741		(437,422	)	813,089
Reinvested capital gains		1,912		334		40,480		75,894		519,092		272,360		715,214		–
Net increase (decrease) in contract owners’ equity resulting from operations		9,258		5,400		275,730		198,876		2,895,168		4,709,379		512,955		1,051,926
Equity transactions:
Purchase payments received from contract owners (note 6)		5,030		8,264		345,778		140,568		950,232		918,742		396,298		460,124
Transfers between funds		168,874		163,312		(22,574	)	(424,230	)	(651,482	)	2,210,362		(689,072	)	180,546
Surrenders (note 6)		(8,026	)	–		(139,664	)	(371,959	)	(1,252,896	)	(1,260,930	)	(425,832	)	(472,825	)
Death benefits (note 4)		–		–		–		–		(32,252	)	(52,372	)	(30,356	)	(137,894	)
Net policy repayments (loans) (note 5)		(1,000	)	–		(9,176	)	29,362		26,554		(120,630	)	61,912		(40,052	)
Deductions for surrender charges (note 2d)		(44	)	–		(1,984	)	(4,708	)	(21,224	)	(35,729	)	(6,028	)	(8,681	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(12,346	)	(5,370	)	(101,168	)	(104,182	)	(779,820	)	(661,004	)	(335,386	)	(346,490	)
Asset charges (note 3):
MSP contracts		(64	)	(34	)	(1,143	)	(1,131	)	(8,279	)	(7,358	)	(1,928	)	(1,865	)
LSFP contracts		–		–		(4,366	)	(3,951	)	(8,725	)	(6,992	)	(840	)	(693	)
Adjustments to maintain reserves		(28	)	61		11		199		(9,658	)	284,480		5,691		(6,447	)
Net equity transactions		152,396		166,233		65,714		(740,032	)	(1,787,550	)	1,268,569		(1,025,541	)	(374,277	)
Net change in contract owners’ equity		161,654		171,633		341,444		(541,156	)	1,107,618		5,977,948		(512,586	)	677,649
Contract owners’ equity beginning of period		202,244		30,611		2,320,205		2,861,361		19,011,928		13,033,980		8,308,716		7,631,067
Contract owners’ equity end of period	$	363,898		202,244		2,661,649		2,320,205		20,119,546		19,011,928		7,796,130		8,308,716
CHANGES IN UNITS:
Beginning units		19,166		3,007		140,706		190,911		498,620		463,861		284,110		300,059
Units purchased		16,131		16,678		35,963		22,530		146,492		113,729		87,076		56,220
Units redeemed		(2,005	)	(519	)	(32,829	)	(72,735	)	(162,996	)	(78,970	)	(107,590	)	(72,169	)
Ending units		33,292		19,166		143,840		140,706		482,116		498,620		263,596		284,110

(Continued)

44

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	StOpp2
Investment activity:	2005			2004
Net investment income (loss)	$	(239,912	)	(262,942	)
Realized gain (loss) on investments		(490,049	)	(315,827	)
Change in unrealized gain (loss) on investments		3,022,828		6,108,252
Reinvested capital gains		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		2,292,867		5,529,483
Equity transactions:
Purchase payments received from contract owners (note 6)		1,963,664		2,279,452
Transfers between funds		(2,083,948	)	(1,564,776	)
Surrenders (note 6)		(2,472,238	)	(2,433,372	)
Death benefits (note 4)		(185,056	)	(65,608	)
Net policy repayments (loans) (note 5)		(300,760	)	(54,978	)
Deductions for surrender charges (note 2d)		(28,846	)	(45,345	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(1,573,710	)	(1,661,992	)
Asset charges (note 3):
MSP contracts		(8,121	)	(8,687	)
LSFP contracts		(8,407	)	(8,055	)
Adjustments to maintain reserves		582		(39,900	)
Net equity transactions		(4,696,840	)	(3,603,261	)
Net change in contract owners’ equity		(2,403,973	)	1,926,222
Contract owners’ equity beginning of period		35,975,510		34,049,288
Contract owners’ equity end of period	$	33,571,537		35,975,510
CHANGES IN UNITS:
Beginning units		802,158		891,693
Units purchased		332,641		173,276
Units redeemed		(303,601	)	(262,811	)
Ending units		831,198		802,158

See accompanying notes to financial statements.

45

NATIONWIDE VLI SEPARATE ACCOUNT-2

NOTES TO FINANCIAL STATEMENTS

December 31, 2005 and 2004

(1) Background and Summary of Significant Accounting Policies

(a) Organization and Nature of Operations

The Nationwide VLI Separate Account-2 (the Account) was established pursuant to a resolution of the Board of Directors of Nationwide Life Insurance Company (the Company) on May 7, 1987. The Account is registered as a unit investment trust under the Investment Company Act of 1940.

The Company offers Single Premium, Modified Single Premium, Flexible Premium and Last Survivor Flexible Premium Variable Life Insurance Policies through the Account. The primary distribution for the contracts is through the brokerage community; however, other distributors may be utilized.

(b) The Contracts

Prior to December 31, 1990, only contracts without a front-end sales charge, but with a contingent deferred sales charge and certain other fees, were offered for purchase. Beginning December 31, 1990, contracts with a front-end sales charge, a contingent deferred sales charge and certain other fees, are offered for purchase. See note 2 for a discussion of policy charges and note 3 for asset charges.

Contract owners may invest in the following:

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

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

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

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

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

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

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

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

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

    American Century VP – Balanced Fund – Class I (ACVPBal)

    American Century VP – Capital Appreciation Fund – Class I (ACVPCapAp)

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

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

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

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

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

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

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

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

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

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

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

    Credit Suisse Trust – Global Small Cap Portfolio (CSGPVen)

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

    Credit Suisse Trust – International Focus Portfolio (CSIntFoc)

    Credit Suisse Trust – Small Cap Growth Portfolio (CSSmCapGr)

Funds of the Dreyfus Investment Portfolios (Dreyfus IP);

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

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

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

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

(Continued)

46

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

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

    Dreyfus VIF – Appreciation Portfolio – Initial Shares (DryVIFApp)

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

    Dreyfus VIF – Growth and Income Portfolio – Initial Shares (DryVIFGrInc)

Portfolios of Federated Insurance Series (Federated IS);

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

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

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

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

    Fidelity^® VIP – Equity-Income Portfolio: Initial Class (FidVIPEI)

    Fidelity^® VIP – Growth Portfolio: Initial Class (FidVIPGr)

    Fidelity^® VIP – High Income Portfolio: Initial Class (FidVIPHI)

    Fidelity^® VIP – Overseas Portfolio: Initial Class (FidVIPOv)

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

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

    Fidelity^® VIP II – Asset Manager Portfolio: Initial Class (FidVIPAM)

    Fidelity^® VIP II – Contrafund^® Portfolio: Initial Class (FidVIPCon)

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

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

    Fidelity^® VIP III – Growth Opportunities Portfolio: Initial Class (FidVIPGrOp)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Franklin Templeton VIP III – Templeton Developing Markets Securities Fund –

        Class 3 (TmDevMktS3)

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

Funds of the Gartmore Variable Insurance Trust (Gartmore GVIT)

(Gartmore is an affiliate of the Company);

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

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

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

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

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

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

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

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

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

    Gartmore GVIT – Growth Fund – Class I (GVITGrowth)

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

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

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

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

(Continued)

47

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

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

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

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

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

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

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

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

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

(Gartmore is an affiliate of the Company);

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

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

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

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

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

Funds of the Gartmore Variable Insurance Trust – Investor Destinations (Gartmore GVIT ID II)

(Gartmore is an affiliate of the Company);

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

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

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

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

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

Portfolios of the Janus Aspen Series (Janus AS);

    Janus AS – Balanced Portfolio – Service Shares (JanBal)

    Janus AS – Forty Portfolio – Service Shares (JanCapAp)

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

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

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

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

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

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

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

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

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

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

    Neuberger Berman AMT – Balanced Portfolio^® – I Class Shares (NBAMTBal)

    Neuberger Berman AMT – Growth Portfolio^® – I Class Shares (NBAMTGro)

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

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

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

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

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

    Neuberger Berman AMT – Mid Cap Growth Portfolio^® – S Class Shares (NBAMTMCGrS)

Portfolios of the Oppenheimer Funds (Oppenheimer Funds);

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

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

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

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

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

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

    Oppenheimer Funds – Multiple Strategies Fund/VA – Initial Class (OppMultStr)

Portfolios of the Oppenheimer Funds (Oppenheimer Funds III);

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

(Continued)

48

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

Portfolios of the Oppenheimer Variable Account Funds (Oppenheimer VAF);

    Oppenheimer VAF – Oppenheimer Bond Fund/VA – Initial Class (OppBdFd)

        (formerly Oppenheimer Bond Fund/VA – Initial Class)

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

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

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

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

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

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

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

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

        Class II (TRLimTrmBnd2)

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

    Van Eck WIT – Worldwide Bond Fund – Initial Class (VEWrldBd)

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

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

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

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

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

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

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

    Wells Fargo VTF^SM – Wells Fargo Advantage Discovery Fund VT (StDisc2)

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

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

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

At December 31, 2005, contract owners were invested in all of the above funds. 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.

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

(Continued)

49

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

(d) Federal Income Taxes

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

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

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

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

(2) Policy Charges

(a) Deductions from Premiums

For single premium and modified single premium contracts, no deduction is made from any premium at the time of payment. On multiple payment contracts the Company deducts a charge for state premium taxes equal to 2.5% of all premiums received to cover the payment of these premium taxes. The Company also deducts a sales load from each premium payment received not to exceed 3.5% of each premium payment. For flexible premium contracts, the sales load is reduced to 1.5% on any portion of the annual premium paid in excess of the annual break point premium.

On last survivor flexible premium contracts, the Company deducts a charge for state premium taxes equal to 3.5% of all premiums received to cover the payment of these premium taxes. The Company also deducts a sales load from each premium payment received not to exceed 5% of each premium payment during the first ten years and 1.5% of each premium payment thereafter.

The Company may at its sole discretion reduce this sales loading.

For the periods ended December 31, 2005 and 2004, total front-end sales charge deductions were $3,591,203 and $4,033,320, respectively.

(b) Cost of Insurance

A cost of insurance charge is assessed monthly against each contract by liquidating units. 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).

For last survivor flexible premium contracts, the monthly cost of insurance is determined in a manner that reflects the anticipated mortality of the two insureds and the fact that the death benefit is not payable until the death of the second insured policyholder.

(c) Administrative Charges

An administrative charge is assessed against each contract to recover policy maintenance, accounting, record keeping and other administrative expenses and is assessed against each contract by liquidating units.

For single premium contracts, the Company deducts an annual administrative charge which is determined as follows:

Contracts issued prior to April 16, 1990:

    Purchase payments totalling less than $25,000 – $10/month

    Purchase payments totalling $25,000 or more – none

Contracts issued on or after April 16, 1990:

    Purchase payments totalling less than $25,000 – $90/year ($65/year in New York)

    Purchase payments totalling $25,000 or more – $50/year

For multiple payment contracts, the Company currently deducts a monthly administrative charge of $5 (not to exceed $7.50 per month).

(Continued)

50

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

For flexible premium contracts, the Company currently deducts a monthly administrative charge of $12.50 during the first policy year. For all subsequent years, a monthly administrative charge is deducted (currently $5 per month not to exceed $7.50). Additionally, the Company deducts an increase charge when the policy’s specified amount is increased. The charge is equal $2.04 per year per $1,000 of the specified amount increase.

For modified single premium contracts, the monthly charge is equal to an annualized rate of 0.30% multiplied by the policy’s cash value to cover administrative, premium tax and deferred acquisition costs. For policy years 11 and later, this monthly charge is reduced to an annualized rate of 0.15% of the policy’s cash value. The monthly charge is subject to a $10 minimum.

For last survivor flexible premium contracts, the Company deducts a monthly administrative charge equal to the sum of the per policy charge and the per $1,000 basic coverage charge. For policy years one through ten the per policy charge is $10. Additionally, there is a $0.04 per $1,000 basic coverage charge (not less than $20 or more than $80 per policy per year). For policy years eleven and after, the per policy charge is $5. Additionally, there is a $0.02 per $1,000 basic coverage charge (not less than $10 or more than $40 per policy per year).

(d) Surrender Charges

Policy surrenders result in a withdrawal of contract value from the Account and payment of the surrender proceeds to the policy owner or designee. The surrender proceeds consist of the contract value, less any outstanding policy loans, and less a surrender charge, if applicable. The charge is determined according to contract type.

For single premium contracts, the charge is a percentage of the original purchase payment. For single premium contracts issued prior to April 16, 1990, the charge is 8% in the first year and declines a specified amount each year. After the ninth year, the charge is 0%. For single premium contracts issued on or after April 16, 1990, the charge is 8.5% in the first year, and declines a specified amount each year. After the ninth year, the charge is 0%. However, if a policy’s specified amount increases, the amount of the increase will have a nine-year surrender charge period.

For multiple payment contracts, last survivor flexible premium contract and flexible premium contracts, the amount charged is based upon a specified percentage of the initial specified amount and varies by issue age, sex and rate class. The charge is reduced at certain time intervals, and declines a specified amount each year. After the ninth year for flexible premium contracts and after the tenth year for multiple payment and last survivor contracts, the charge is 0%. However, if a policy’s specified amount increases, the amount of the increase will have the same nine-year surrender charge period.

For modified single premium contracts, the amount charged is based on a percentage of the original premium payment. The charge is 10% of the initial premium payment and declines a specified amount each year to 0% after the end of the ninth year.

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.

(3) Asset Charges

For single premium contracts, the Company deducts a mortality and expense risk charge from the contract to cover mortality and expense risk charges related to operations, and to recover policy maintenance and premium tax charges. For contracts issued prior to April 16, 1990, the charge is equal to an annualized rate of 0.95% during the first ten policy years, and 0.50% thereafter. For single premium contracts issued on or after April 16, 1990, the charge is equal to an annualized rate of 1.30% during the first ten policy years, and 1.00% thereafter. The charge is assessed through the daily unit value calculation and is reflected in the table below.

(Continued)

51

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

For multiple payment contracts, the Company deducts a mortality and expense risk charge equal to an annualized rate of 0.80%. The charge is assessed through the daily unit value calculation and is reflected in the table below.

For modified single premium contracts (MSP), the Company deducts an annualized rate of 0.90% charged against the cash value in the Variable Account. This charge is assessed monthly against each contract by liquidating units.

For flexible premium contracts and last survivor flexible premium contracts (LSFP), the Company deducts an annualized rate of 0.80% in policy years one through ten. This charge is assessed monthly by liquidating units. In policy years eleven and after, the charge will continue to be deducted, but may be reduced for policies at specified asset levels.

The following table provides mortality, expense and administration charges by contract type for the period ended December 31, 2005:

	Total		AIMBValue	AIMCapAp	AIMCapDev	AlVPGrIncA
Single Premium contracts issued prior to April 16, 1990	$	876,721	–	–	–	–
Single Premium contracts issued on or after April 16, 1990		6,706	–	–	–	–
Multiple Payment and Flexible Premium contracts		5,321,570	5,089	1,017	1,518	5,456
Total	$	6,204,997	5,089	1,017	1,518	5,456
	AlVPSmCapVA		ACVPBal	ACVPCapAp	ACVPIncGr	ACVPInt
Single Premium contracts issued prior to April 16, 1990	$	–	7,799	15,665	4,197	9,800
Single Premium contracts issued on or after April 16, 1990		–	–	413	–	13
Multiple Payment and Flexible Premium contracts		6,129	29,962	75,222	21,658	62,142
Total	$	6,129	37,761	91,300	25,855	71,955
	ACVPMidCpVal		ACVPUltra	ACVPVal	ACVPVista	ACVPInflaPro
Single Premium contracts issued prior to April 16, 1990	$	–	738	19,799	–	–
Single Premium contracts issued on or after April 16, 1990		–	–	1	–	–
Multiple Payment and Flexible Premium contracts		228	4,092	73,353	24	7,201
Total	$	228	4,830	93,153	24	7,201
	ACVPInt3		CSGPVen	CSIntFoc	CSSmCapGr	DryEuroEq
Single Premium contracts issued prior to April 16, 1990	$	192	827	6,394	8,325	–
Single Premium contracts issued on or after April 16, 1990		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		5,153	5,136	39,043	81,248	–
Total	$	5,345	5,963	45,437	89,573	–
	DrySmCapIxS		DryStkIx	DrySRGro	DryVIFApp	DryVIFDevLd
Single Premium contracts issued prior to April 16, 1990	$	3,165	50,942	1,924	11,776	–
Single Premium contracts issued on or after April 16, 1990		520	177	–	–	–
Multiple Payment and Flexible Premium contracts		8,048	450,182	61,075	29,456	2,552
Total	$	11,733	501,301	62,999	41,232	2,552

(Continued)

52

    NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	DryVIFGrInc		FedAmLead	FedCapAp	FedQualBd	FidVIPEI
Single Premium contracts issued prior to April 16, 1990	$	3,446	–	–	637	91,480
Single Premium contracts issued on or after April 16, 1990		–	–	–	–	691
Multiple Payment and Flexible Premium contracts		11,664	1,035	150	6,618	416,558
Total	$	15,110	1,035	150	7,255	508,729
	FidVIPGr		FidVIPHI	FidVIPOv	FidVIPOvSR	FidVIPAM
Single Premium contracts issued prior to April 16, 1990	$	78,415	24,344	20,638	10	37,994
Single Premium contracts issued on or after April 16, 1990		647	257	287	–	177
Multiple Payment and Flexible Premium contracts		520,827	110,139	92,846	5,987	112,542
Total	$	599,889	134,740	113,771	5,997	150,713
	FidVIPCon		FidVIPIGBdS	FidVIPGrOp	FidVIPMCapS	FidVIPVaIS
Single Premium contracts issued prior to April 16, 1990	$	56,025	–	1,409	–	2,640
Single Premium contracts issued on or after April 16, 1990		–	–	60	–	–
Multiple Payment and Flexible Premium contracts		378,551	13,495	25,773	41,647	6,765
Total	$	434,576	13,495	27,242	41,647	9,405
	FidVIPCon2		FidFF2010	FidFF2020	FidFF2030	FrVIPRisDiv
Single Premium contracts issued prior to April 16, 1990	$	17	–	–	–	–
Single Premium contracts issued on or after April 16, 1990		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		3,723	63	468	60	18,844
Total	$	3,740	63	468	60	18,844
	FTVIPSmCpVal		FrVIPForSec	FrVIPGISec3	TmDevMktS3	FrVIPForSec3
Single Premium contracts issued prior to April 16, 1990	$	–	–	57	–	–
Single Premium contracts issued on or after April 16, 1990		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		19,111	9,455	93	937	1,013
Total	$	19,111	9,455	150	937	1,013
	GVITDryIntVal		GVITDMidCapI	GVITEmMrkts	GVITFHiInc	GVITGlFin1
Single Premium contracts issued prior to April 16, 1990	$	–	10,029	2,792	–	925
Single Premium contracts issued on or after April 16, 1990		–	10	1	–	2
Multiple Payment and Flexible Premium contracts		8,822	35,643	11,454	2,846	3,637
Total	$	8,822	45,682	14,247	2,846	4,564
	GVITGlHlth		GVITGlTech	GVITGlUtl1	GVITGvtBd	GVITGrowth
Single Premium contracts issued prior to April 16, 1990	$	3,172	760	2,767	24,432	3,896
Single Premium contracts issued on or after April 16, 1990		1	1	209	176	–
Multiple Payment and Flexible Premium contracts		4,024	4,305	6,684	61,697	113,763
Total	$	7,197	5,066	9,660	86,305	117,659

(Continued)

53

    NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	GVITIntGro		GVITSMdCpGr	GVITMyMkt	GVITNWFund	GVITLead
Single Premium contracts issued prior to April 16, 1990	$	1,736	1,652	73,712	19,874	646
Single Premium contracts issued on or after April 16, 1990		–	–	743	117	–
Multiple Payment and Flexible Premium contracts		1,558	6,508	136,606	503,230	1,376
Total	$	3,294	8,160	211,061	523,221	2,022
	GVITSmCapGr		GVITSmCapVal	GVITSmComp	GVITUSGro	GVITVKMultiSec
Single Premium contracts issued prior to April 16, 1990	$	1,348	23,654	9,787	1,808	788
Single Premium contracts issued on or after April 16, 1990		19	171	115	–	–
Multiple Payment and Flexible Premium contracts		7,716	70,076	178,058	4,228	6,058
Total	$	9,083	93,901	187,960	6,036	6,846
	GVITCVal		GVITDryIntVal3	GVITEmMrkts3	GVITFHiInc3	GVITGlHlth3
Single Premium contracts issued prior to April 16, 1990	$	–	–	57	–	32
Single Premium contracts issued on or after April 16, 1990		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		4,727	2,216	1,759	463	850
Total	$	4,727	2,216	1,816	463	882
	GVITGlTech3		GVITIDAgg	GVITIDCon	GVITIDMod	GVITIDModAgg
Single Premium contracts issued prior to April 16, 1990	$	10	–	371	5,972	3,696
Single Premium contracts issued on or after April 16, 1990		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		548	11,594	4,127	28,733	31,093
Total	$	558	11,594	4,498	34,705	34,789
	GVITIDModCon		JanBal	JanCapAp	JanGlTech	JanIntGro
Single Premium contracts issued prior to April 16, 1990	$	11,870	–	1,125	806	2,951
Single Premium contracts issued on or after April 16, 1990		–	–	–	–	68
Multiple Payment and Flexible Premium contracts		8,051	976	15,553	6,381	10,162
Total	$	19,921	976	16,678	7,187	13,181
	JanRMgLgCap		MFSVITInvGrwI	MFSVITValIn	NBAMTInt	NBAMTReg
Single Premium contracts issued prior to April 16, 1990	$	–	–	–	–	–
Single Premium contracts issued on or after April 16, 1990		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		1,517	2,045	1,737	898	171
Total	$	1,517	2,045	1,737	898	171
	NBAMTBal		NBAMTGro	NBAMTGuard	NBAMTLMat	NBAMTPart
Single Premium contracts issued prior to April 16, 1990	$	–	15,188	527	8,446	16,386
Single Premium contracts issued on or after April 16, 1990		–	417	–	97	–
Multiple Payment and Flexible Premium contracts		255	99,190	12,040	21,270	142,817
Total	$	255	114,795	12,567	29,813	159,203

(Continued)

54

    NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	NBAMTSocRes		NBAMTFasc	NBAMTMCGrS	OppAggGro	OppCapAp
Single Premium contracts issued prior to April 16, 1990	$	–	–	–	2,217	12,659
Single Premium contracts issued on or after April 16, 1990		–	–	–	1	–
Multiple Payment and Flexible Premium contracts		1,548	632	1,542	12,459	78,187
Total	$	1,548	632	1,542	14,677	90,846
	OppGlSec		OppHighInc	OppMSFund	OppMSSmCap	OppMultStr
Single Premium contracts issued prior to April 16, 1990	$	28,135	–	2,047	–	22,170
Single Premium contracts issued on or after April 16, 1990		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		214,572	3,694	8,464	4,033	81,076
Total	$	242,707	3,694	10,511	4,033	103,246
	OppGlSec3		OppBdFd	PVTGroInc	PVTIntEq	PVTVoyII
Single Premium contracts issued prior to April 16, 1990	$	59	8,195	–	–	–
Single Premium contracts issued on or after April 16, 1990		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		7,452	69,934	630	1,454	242
Total	$	7,511	78,129	630	1,454	242
	StIntStk2		TRPBluChpGrII	TRowEqInc2	TRLimTrmBnd2	VEWrldBd
Single Premium contracts issued prior to April 16, 1990	$	–	–	–	–	8,793
Single Premium contracts issued on or after April 16, 1990		–	–	–	–	112
Multiple Payment and Flexible Premium contracts		–	244	602	36	16,987
Total	$	–	244	602	36	25,892
	VEWrldEMkt		VEWrldHAs	VKoreFI	VKEmMkt	VKUSRealEst
Single Premium contracts issued prior to April 16, 1990	$	8,577	16,855	–	1,860	20,392
Single Premium contracts issued on or after April 16, 1990		409	346	–	100	202
Multiple Payment and Flexible Premium contracts		38,444	40,560	1,780	12,329	114,495
Total	$	47,430	57,761	1,780	14,289	135,089
	StDisc2		StOpp2
Single Premium contracts issued prior to April 16, 1990	$	6,054	28,838
Single Premium contracts issued on or after April 16, 1990		42	104
Multiple Payment and Flexible Premium contracts		48,394	210,970
Total	$	54,490	239,912

(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.

(Continued)

55

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

(5) Policy Loans (Net of Repayments)

Contract provisions allow contract owners to borrow up to 90% (50% during first year of single and modified single premium contracts) of a policy’s cash surrender value. For single premium contracts issued prior to April 16, 1990, 6.5% interest is due and payable annually in advance of the policy anniversary date. For single premium contracts issued on or after April 16, 1990, multiple payment, flexible premium, modified single and last survivor flexible premium contracts, 6% interest is due and payable in advance on the policy anniversary when there is a loan outstanding on the policy.

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. Loan repayments result in a transfer of collateral, including interest, back to the Account.

(6) Related Party Transactions

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

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

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

For the periods ended December 31, 2005 and 2004, total transfers into the Account from the fixed account were $24,517,955 and $25,279,930, respectively, and total transfers from the Account to the fixed account were $27,229,398 and $26,791,089, respectively.

(Continued)

56

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

(7) Financial Highlights

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

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Modified Single Premium contracts and Last Survivor Flexible Premium contracts
AIM VIF – Basic Value Fund – Series I Shares
2005	0.00%	1,026	$	15.346928	$	15,746	0.09%	5.74%
2004	0.00%	738		14.514365		10,712	0.00%	11.07%
2003	0.00%	1,146		13.067831		14,976	0.11%	30.68%	05/01/03
AIM VIF – Capital Appreciation Fund – Series I Shares
2005	0.00%	780		14.382523		11,218	0.04%	8.84%
2004	0.00%	76		13.214909		1,004	0.00%	6.63%
2003	0.00%	78		12.393708		967	0.00%	23.94%	05/01/03
AIM VIF – Capital Development Fund – Series I Shares
2005	0.00%	2,094		16.468791		34,486	0.00%	9.60%
2004	0.00%	2,534		15.025595		38,075	0.00%	15.50%
2003	0.00%	286		13.009212		3,721	0.00%	30.09%	05/01/03
Alliance VPSF – AllianceBernstein Growth & Income Portfolio – Class A
2005	0.00%	17,122		14.542693		249,000	1.68%	4.87%
2004	0.00%	18,484		13.867818		256,333	0.96%	11.46%
2003	0.00%	10,465		12.441750		130,203	0.00%	24.42%	05/01/03
Alliance VPSF – AllianceBernstein Small/Mid Cap Value Portfolio – Class A
2005	0.00%	3,250		17.597332		57,191	0.72%	6.91%
2004	0.00%	6,962		16.459431		114,591	0.13%	19.30%
2003	0.00%	3,645		13.796395		50,288	0.02%	37.96%	05/01/03
American Century VP – Balanced Fund – Class I
2005	0.00%	40,316		18.850696		759,985	1.83%	4.93%
2004	0.00%	40,968		17.964228		735,958	1.68%	9.78%
2003	0.00%	39,618		16.364159		648,315	2.53%	19.46%
2002	0.00%	41,666		13.698528		570,763	2.63%	-9.56%
2001	0.00%	46,974		15.146118		711,474	2.81%	-3.54%
American Century VP – Capital Appreciation Fund – Class I
2005	0.00%	73,308		13.885054		1,017,886	0.00%	22.06%
2004	0.00%	71,068		11.375351		808,423	0.00%	7.58%
2003	0.00%	78,088		10.573426		825,658	0.00%	20.47%
2002	0.00%	84,319		8.776539		740,029	0.00%	-21.20%
2001	0.00%	113,954		11.137742		1,269,190	0.00%	-28.07%
American Century VP – Income & Growth Fund – Class I
2005	0.00%	27,378		13.018850		356,430	2.03%	4.63%
2004	0.00%	42,110		12.442664		523,961	1.44%	12.99%
2003	0.00%	57,191		11.011963		629,785	1.30%	29.35%
2002	0.00%	52,727		8.513147		448,873	1.10%	-19.37%
2001	0.00%	53,217		10.558315		561,882	0.81%	-8.35%
American Century VP – International Fund – Class I
2005	0.00%	52,474		18.928348		993,246	1.27%	13.25%
2004	0.00%	63,654		16.713189		1,063,861	0.58%	14.92%
2003	0.00%	93,653		14.542846		1,361,981	0.75%	24.51%
2002	0.00%	108,743		11.680067		1,270,126	0.79%	-20.37%
2001	0.00%	111,542		14.668200		1,636,120	0.09%	-29.17%
American Century VP – Mid Cap Value Fund – Class I
2005	0.00%	956		11.322176		10,824	1.06%	13.22%	05/02/05
American Century VP – Ultra® Fund – Class I
2005	0.00%	9,754		11.352287		110,730	0.00%	2.17%
2004	0.00%	12,672		11.111676		140,807	0.00%	10.68%
2003	0.00%	8,464		10.039885		84,978	0.00%	24.90%
2002	0.00%	2,062		8.038471		16,575	0.46%	-19.62%	05/01/02

(Continued)

57

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
American Century VP – Value Fund – Class I
2005	0.00%	73,392	$	23.976512	$	1,759,684	0.88%	5.03%
2004	0.00%	80,992		22.827520		1,848,846	1.01%	14.33%
2003	0.00%	94,777		19.965823		1,892,301	1.09%	28.96%
2002	0.00%	105,282		15.482416		1,630,020	0.90%	-12.62%
2001	0.00%	98,909		17.718442		1,752,513	0.95%	12.82%
American Century VP II – Inflation Protection Fund – Class II
2005	0.00%	10,992		11.094803		121,954	4.38%	1.56%
2004	0.00%	7,602		10.924094		83,045	3.57%	5.81%
2003	0.00%	739		10.324182		7,630	1.88%	3.24%	04/30/03
American Century VP III – International Fund – Class III
2005	0.00%	20,404		11.673757		238,191	0.00%	16.74%	05/02/05
Credit Suisse Trust – Global Small Cap Portfolio
2005	0.00%	12,466		15.465259		192,790	0.00%	16.14%
2004	0.00%	11,532		13.315648		153,556	0.00%	17.99%
2003	0.00%	11,132		11.285456		125,630	0.00%	47.66%
2002	0.00%	11,260		7.643060		86,061	0.00%	-34.16%
2001	0.00%	12,080		11.607891		140,223	0.00%	-28.63%
Credit Suisse Trust – International Focus Portfolio
2005	0.00%	94,820		12.986442		1,231,374	0.91%	17.44%
2004	0.00%	103,404		11.058069		1,143,449	0.99%	14.74%
2003	0.00%	111,879		9.637324		1,078,214	0.49%	33.09%
2002	0.00%	115,124		7.241185		833,634	0.00%	-19.90%
2001	0.00%	120,573		9.040640		1,090,057	0.00%	-22.27%
Credit Suisse Trust – Small Cap Growth Portfolio
2005	0.00%	127,936		13.646704		1,745,905	0.00%	-2.68%
2004	0.00%	136,576		14.022473		1,915,133	0.00%	10.87%
2003	0.00%	136,928		12.647723		1,731,827	0.00%	48.55%
2002	0.00%	132,124		8.514305		1,124,944	0.00%	-33.69%
2001	0.00%	185,522		12.840185		2,382,137	0.00%	-16.01%
Dreyfus IP – European Equity Portfolio
2001	0.00%	133		6.722485		894	0.84%	-28.13%
Dreyfus IP – Small Cap Stock Index Portfolio – Service Class
2005	0.00%	38,236		13.821296		528,471	0.00%	7.23%
2004	0.00%	40,584		12.889095		523,091	0.50%	21.88%
2003	0.00%	38,496		10.574853		407,090	0.33%	37.78%
2002	0.00%	4,411		7.675242		33,855	0.27%	-23.25%	05/01/02
Dreyfus Investor, Inc. – Dreyfus Stock Index Fund, Inc. – Initial Shares
2005	0.00%	514,448		21.667325		11,146,712	1.60%	4.69%
2004	0.00%	578,778		20.696422		11,978,634	1.80%	10.64%
2003	0.00%	632,333		18.706070		11,828,465	1.51%	28.36%
2002	0.00%	584,757		14.572787		8,521,539	1.31%	-22.36%
2001	0.00%	599,693		18.770165		11,256,337	1.06%	-12.18%
Dreyfus Investor, Inc. – The Dreyfus Socially Responsible Growth Fund, Inc.
2005	0.00%	40,512		16.401660		664,464	0.00%	3.62%
2004	0.00%	46,244		15.829359		732,013	0.38%	6.21%
2003	0.00%	50,706		14.903772		755,711	0.11%	26.00%
2002	0.00%	57,964		11.828136		685,606	0.21%	-28.94%
2001	0.00%	72,096		16.646416		1,200,140	0.06%	-22.57%
Dreyfus VIF – Appreciation Portfolio – Initial Shares
2005	0.00%	63,038		14.837109		935,302	0.02%	4.38%
2004	0.00%	68,432		14.214838		972,750	1.63%	5.05%
2003	0.00%	77,680		13.532029		1,051,168	1.40%	21.17%
2002	0.00%	76,442		11.167894		853,696	1.14%	-16.71%
2001	0.00%	81,387		13.409044		1,091,322	0.84%	-9.31%
Dreyfus VIF – Developing Leaders Portfolio – Initial Shares
2005	0.00%	5,054		15.197076		76,806	0.00%	5.80%
2004	0.00%	3,802		14.363942		54,612	0.22%	11.34%
2003	0.00%	4,756		12.900917		61,357	0.08%	29.01%	05/01/03

(Continued)

58

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Dreyfus VIF – Growth and Income Portfolio – Initial Shares
2005	0.00%	35,564	$	14.429123	$	513,157	1.34%	3.35%
2004	0.00%	37,814		13.961156		527,927	1.23%	7.47%
2003	0.00%	36,562		12.991038		474,978	0.84%	26.57%
2002	0.00%	42,290		10.263905		434,061	0.60%	-25.33%
2001	0.00%	42,969		13.745232		590,619	0.50%	-5.85%
Federated IS – American Leaders Fund II – Primary Shares
2005	0.00%	362		14.525597		5,258	1.33%	5.02%
2004	0.00%	306		13.830995		4,232	0.41%	9.78%
Federated IS – Quality Bond Fund II – Primary Shares
2005	0.00%	19,802		11.843786		234,531	3.65%	1.30%
2004	0.00%	12,318		11.692084		144,023	4.98%	3.62%
2003	0.00%	11,878		11.283621		134,027	3.93%	4.65%
2002	0.00%	11,620		10.782678		125,295	0.00%	7.83%	05/01/02
Fidelity® VIP – Equity-Income Portfolio: Initial Class
2005	0.00%	348,510		21.607366		7,530,383	1.64%	5.87%
2004	0.00%	375,788		20.410267		7,669,933	1.56%	11.53%
2003	0.00%	409,083		18.300351		7,486,362	1.80%	30.33%
2002	0.00%	407,426		14.041601		5,720,913	1.77%	-16.95%
2001	0.00%	431,008		16.906669		7,286,910	1.70%	-4.96%
Fidelity® VIP – Growth Portfolio: Initial Class
2005	0.00%	341,122		18.410455		6,280,211	0.51%	5.80%
2004	0.00%	365,242		17.401445		6,355,739	0.27%	3.38%
2003	0.00%	393,063		16.832769		6,616,339	0.27%	32.85%
2002	0.00%	408,322		12.670716		5,173,732	0.25%	-30.10%
2001	0.00%	464,650		18.128151		8,423,245	0.08%	-17.65%
Fidelity® VIP – High Income Portfolio: Initial Class
2005	0.00%	185,840		13.370516		2,484,777	16.14%	2.70%
2004	0.00%	222,416		13.018901		2,895,612	8.82%	9.59%
2003	0.00%	277,638		11.879372		3,298,165	5.94%	27.26%
2002	0.00%	277,242		9.334381		2,587,882	9.29%	3.44%
2001	0.00%	268,872		9.023656		2,426,208	13.67%	-11.73%
Fidelity® VIP – Overseas Portfolio: Initial Class
2005	0.00%	101,850		18.869419		1,921,850	0.71%	19.05%
2004	0.00%	112,550		15.850578		1,783,983	1.14%	13.64%
2003	0.00%	104,335		13.948630		1,455,330	0.83%	43.37%
2002	0.00%	100,989		9.729244		982,547	0.83%	-20.28%
2001	0.00%	100,976		12.204145		1,232,326	5.37%	-21.17%
Fidelity® VIP – Overseas Portfolio: Service Class R
2005	0.00%	21,148		12.499996		264,350	0.00%	25.00%	05/02/05
Fidelity® VIP II – Asset Manager Portfolio: Initial Class
2005	0.00%	71,156		18.505123		1,316,751	2.76%	4.04%
2004	0.00%	80,426		17.785832		1,430,443	2.76%	5.47%
2003	0.00%	78,858		16.863587		1,329,829	3.62%	17.97%
2002	0.00%	87,642		14.294216		1,252,774	3.98%	-8.73%
2001	0.00%	97,209		15.661062		1,522,396	4.21%	-4.09%
Fidelity® VIP II – Contrafund® Portfolio: Initial Class
2005	0.00%	264,040		29.064668		7,674,235	0.29%	16.94%
2004	0.00%	258,620		24.855086		6,428,022	0.34%	15.48%
2003	0.00%	271,532		21.523942		5,844,439	0.46%	28.46%
2002	0.00%	278,231		16.754926		4,661,740	0.85%	-9.35%
2001	0.00%	310,919		18.482808		5,746,656	0.78%	-12.24%
Fidelity® VIP II – Investment Grade Bond Portfolio: Service Class
2005	0.00%	24,210		10.880732		263,423	1.67%	2.08%
2004	0.00%	24,840		10.659014		264,770	1.88%	4.32%
2003	0.00%	998		10.217718		10,197	0.00%	2.18%	05/01/03
Fidelity® VIP III – Growth Opportunities Portfolio: Initial Class
2005	0.00%	52,346		12.017274		629,056	0.95%	8.89%
2004	0.00%	61,482		11.036087		678,521	0.53%	7.19%
2003	0.00%	60,543		10.295709		623,333	0.74%	29.87%
2002	0.00%	51,868		7.927585		411,188	1.07%	-21.84%
2001	0.00%	59,212		10.143319		600,606	0.38%	-14.42%

(Continued)

59

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Fidelity® VIP III – Mid Cap Portfolio: Service Class
2005	0.00%	37,294	$	20.773676	$	774,733	0.00%	18.20%
2004	0.00%	27,716		17.574515		487,095	0.00%	24.77%
2003	0.00%	9,873		14.085331		139,064	0.00%	40.85%	05/01/03
Fidelity® VIP III – Value Strategies Portfolio: Service Class
2005	0.00%	9,800		13.851491		135,745	0.00%	2.55%
2004	0.00%	27,044		13.506506		365,270	0.00%	13.99%
2003	0.00%	26,162		11.849148		309,997	0.00%	57.79%
2002	0.00%	843		7.509507		6,331	0.00%	-24.90%	05/01/02
Fidelity® VIP IV – Natural Resources Portfolio: Service Class 2
2005	0.00%	11,834		13.514321		159,928	0.65%	35.14%	05/02/05
Fidelity® VIP FF – Freedom Fund 2010 Portfolio: Service Class
2005	0.00%	2,002		10.806063		21,634	0.56%	8.06%	05/02/05
Fidelity® VIP FF – Freedom Fund 2020 Portfolio: Service Class
2005	0.00%	5,140		11.118664		57,150	0.86%	11.19%	05/02/05
Franklin Templeton VIP – Franklin Rising Dividends Securities Fund – Class I
2005	0.00%	20,818		14.195085		295,513	1.09%	3.68%
2004	0.00%	30,080		13.690957		411,824	0.66%	11.25%
2003	0.00%	15,727		12.306508		193,544	0.20%	23.07%	05/01/03
Franklin Templeton VIP – Franklin Small Cap Value Securities Fund – Class I
2005	0.00%	8,690		18.064784		156,983	0.91%	8.99%
2004	0.00%	7,248		16.575156		120,137	0.19%	24.09%
2003	0.00%	2,401		13.357313		32,071	0.12%	33.57%	05/01/03
Franklin Templeton VIP – Templeton Foreign Securities Fund – Class I
2005	0.00%	8,296		17.425708		144,564	1.37%	10.48%
2004	0.00%	25,722		15.773327		405,722	1.10%	18.87%
2003	0.00%	4,015		13.269107		53,275	0.79%	32.69%	05/01/03
Franklin Templeton VIP III – Franklin Global Income Securities Fund – Class 3
2005	0.00%	1,034		9.881172		10,217	7.95%	-1.19%	05/02/05
Franklin Templeton VIP III – Templeton Developing Markets Securities Fund – Class 3
2005	0.00%	14,152		12.804274		181,206	0.53%	28.04%	05/02/05
Franklin Templeton VIP III – Templeton Foreign Securities Fund – Class 3
2005	0.00%	21,384		11.288544		241,394	0.39%	12.89%	05/02/05
Gartmore GVIT – Dreyfus International Value Fund – Class I
2005	0.00%	3,908		18.800450		73,472	1.34%	12.09%
2004	0.00%	11,032		16.772215		185,031	2.03%	20.29%
2003	0.00%	3,602		13.838062		49,845	0.00%	38.38%	05/01/03
Gartmore GVIT – Dreyfus Mid Cap Index Fund – Class I
2005	0.00%	65,296		15.357475		1,002,782	1.03%	12.10%
2004	0.00%	74,186		13.700026		1,016,350	0.54%	15.73%
2003	0.00%	87,632		11.837744		1,037,365	0.49%	34.65%
2002	0.00%	57,522		8.791459		505,702	0.42%	-15.30%
2001	0.00%	37,983		10.379883		394,259	0.54%	-1.30%
Gartmore GVIT – Emerging Markets Fund: Class I
2005	0.00%	11,646		18.534273		215,850	0.61%	32.64%
2004	0.00%	16,620		13.973799		232,245	0.93%	20.74%
2003	0.00%	19,194		11.573140		222,135	0.66%	65.26%
2002	0.00%	7,501		7.002885		52,529	0.17%	-15.23%
2001	0.00%	27,272		8.260926		225,292	0.52%	-5.18%
Gartmore GVIT – Federated High Income Bond Fund: Class I
2005	0.00%	8,510		12.532998		106,656	6.81%	2.38%
2004	0.00%	7,390		12.241616		90,466	8.50%	10.10%
2003	0.00%	5,828		11.119017		64,802	9.25%	11.19%	05/01/03
Gartmore GVIT – Global Financial Services Fund: Class I
2005	0.00%	952		16.481268		15,690	2.00%	11.15%
2004	0.00%	1,534		14.827817		22,746	1.45%	20.99%
2003	0.00%	1,548		12.255125		18,971	0.88%	41.45%
2002	0.00%	289		8.663891		2,504	0.08%	-13.36%	05/01/02

(Continued)

60

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Gartmore GVIT – Global Health Sciences Fund: Class I
2005	0.00%	7,210	$	13.334230	$	96,140	0.00%	8.44%
2004	0.00%	11,908		12.296466		146,426	0.00%	7.86%
2003	0.00%	7,254		11.400451		82,699	0.00%	36.69%
2002	0.00%	1,753		8.340128		14,620	0.00%	-16.60%	05/01/02
Gartmore GVIT – Global Technology and Communications Fund:Class I
2005	0.00%	15,970		3.177040		50,737	0.00%	-0.52%
2004	0.00%	24,430		3.193545		78,018	0.00%	4.31%
2003	0.00%	27,880		3.061527		85,355	0.00%	55.23%
2002	0.00%	11,606		1.972253		22,890	0.59%	-42.78%
2001	0.00%	2,536		3.446837		8,741	0.00%	-42.72%
Gartmore GVIT – Global Utilities Fund: Class I
2005	0.00%	12,822		14.894755		190,981	2.16%	6.39%
2004	0.00%	12,104		14.000446		169,461	1.92%	29.97%
2003	0.00%	3,190		10.772327		34,364	0.70%	24.05%
2002	0.00%	250		8.683837		2,171	0.54%	-13.16%	05/01/02
Gartmore GVIT – Government Bond Fund: Class I
2005	0.00%	105,202		18.147625		1,909,166	3.64%	3.26%
2004	0.00%	114,686		17.574111		2,015,504	5.48%	3.26%
2003	0.00%	141,781		17.018937		2,412,962	3.14%	2.00%
2002	0.00%	215,754		16.685161		3,599,890	4.42%	10.98%
2001	0.00%	192,314		15.033937		2,891,237	5.12%	7.25%
Gartmore GVIT – Growth Fund – Class I
2005	0.00%	135,380		12.177042		1,648,528	0.08%	6.50%
2004	0.00%	145,006		11.433814		1,657,972	0.33%	8.16%
2003	0.00%	161,969		10.571536		1,712,261	0.02%	32.74%
2002	0.00%	160,573		7.964177		1,278,832	0.00%	-28.72%
2001	0.00%	169,484		11.173143		1,893,669	0.00%	-28.13%
Gartmore GVIT – International Growth Fund: Class I
2005	0.00%	3,756		10.100861		37,939	1.03%	30.21%
2004	0.00%	1,590		7.757434		12,334	1.40%	14.19%
2003	0.00%	2,327		6.793220		15,808	0.00%	35.62%
Gartmore GVIT – Mid Cap Growth Fund: Class I
2005	0.00%	24,418		6.346461		154,968	0.00%	9.74%
2004	0.00%	21,204		5.783113		122,625	0.00%	15.34%
2003	0.00%	85,532		5.014057		428,862	0.00%	40.13%
2002	0.00%	49,103		3.578034		175,692	0.00%	-37.01%
2001	0.00%	15,083		5.680754		85,683	0.00%	-30.31%
Gartmore GVIT – Money Market Fund – Class I
2005	0.00%	309,850		13.908651		4,309,596	2.64%	2.67%
2004	0.00%	336,040		13.547206		4,552,403	0.78%	0.81%
2003	0.00%	426,388		13.438171		5,729,875	0.63%	0.63%
2002	0.00%	611,041		13.354620		8,160,220	1.26%	1.21%
2001	0.00%	752,971		13.194770		9,935,279	3.57%	3.60%
Gartmore GVIT – Nationwide® Fund: Class I
2005	0.00%	271,134		20.062025		5,439,497	0.91%	7.44%
2004	0.00%	283,884		18.672551		5,300,838	1.28%	9.75%
2003	0.00%	320,276		17.013568		5,449,038	0.56%	27.51%
2002	0.00%	343,472		13.342709		4,582,847	0.85%	-17.35%
2001	0.00%	370,050		16.144226		5,974,171	0.74%	-11.82%
Gartmore GVIT – Nationwide® Leaders Fund: Class I
2005	0.00%	2,942		13.887943		40,858	1.54%	10.31%
2004	0.00%	2,072		12.589767		26,086	0.52%	18.79%
2003	0.00%	680		10.598061		7,207	0.19%	25.38%
2002	0.00%	837		8.452459		7,075	1.18%	-15.48%	05/01/02
Gartmore GVIT – Small Cap Growth Fund: Class I
2005	0.00%	18,340		7.949160		145,788	0.00%	8.09%
2004	0.00%	38,172		7.354229		280,726	0.00%	13.42%
2003	0.00%	29,802		6.484322		193,246	0.00%	34.27%
2002	0.00%	39,937		4.829491		192,875	0.00%	-33.29%
2001	0.00%	28,981		7.239237		209,800	0.00%	-10.84%

(Continued)

61

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Gartmore GVIT – Small Cap Value Fund: Class I
2005	0.00%	107,082	$	21.671283	$	2,320,604	0.06%	3.07%
2004	0.00%	125,486		21.025284		2,638,379	0.00%	17.30%
2003	0.00%	144,123		17.924637		2,583,352	0.00%	56.85%
2002	0.00%	156,777		11.427654		1,791,593	0.01%	-27.16%
2001	0.00%	145,093		15.689204		2,276,394	0.03%	28.28%
Gartmore GVIT – Small Company Fund: Class I
2005	0.00%	133,578		28.446533		3,799,831	0.00%	12.32%
2004	0.00%	143,764		25.327151		3,641,133	0.00%	19.02%
2003	0.00%	163,826		21.279390		3,486,117	0.00%	41.01%
2002	0.00%	161,607		15.090443		2,438,721	0.00%	-17.33%
2001	0.00%	171,105		18.253468		3,123,260	0.10%	-6.70%
Gartmore GVIT – Turner Growth Focus Fund – Class I
2003	0.00%	35,452		3.336873		118,299	0.00%	50.96%
2002	0.00%	5,450		2.210411		12,047	0.00%	-42.86%
Gartmore GVIT – U.S. Growth Leaders Fund: Class I
2005	0.00%	5,658		15.751023		89,119	0.00%	11.96%
2004	0.00%	4,040		14.068165		56,835	0.00%	12.41%
2003	0.00%	4,436		12.515174		55,517	0.00%	52.14%
2002	0.00%	1,992		8.226323		16,387	0.00%	-17.74%	05/01/02
Gartmore GVIT – Van Kampen Multi Sector Bond Fund – Class I
2005	0.00%	14,212		14.303985		203,288	3.89%	2.18%
2004	0.00%	12,326		13.998807		172,549	4.85%	6.53%
2003	0.00%	18,184		13.140266		238,943	5.47%	12.12%
2002	0.00%	12,174		11.720231		142,682	4.53%	7.21%
2001	0.00%	2,363		10.932334		25,833	8.29%	4.19%
Gartmore GVIT – Van Kampen Value Fund – Class I
2005	0.00%	5,522		15.522071		85,713	1.69%	4.25%
2004	0.00%	1,768		14.889740		26,325	1.56%	17.50%
2003	0.00%	75		12.672281		950	1.52%	26.72%	05/01/03
Gartmore GVIT III – Dreyfus International Value Fund – Class III
2005	0.00%	6,630		11.451970		75,927	0.95%	14.52%	05/02/05
Gartmore GVIT III – Emerging Markets Fund: Class III
2005	0.00%	17,390		13.336908		231,929	0.19%	33.37%	05/02/05
Gartmore GVIT III – Federated High Income Bond Fund: Class III
2005	0.00%	1,936		10.540776		20,407	6.33%	5.41%	05/02/05
Gartmore GVIT III – Global Health Sciences Fund: Class III
2005	0.00%	230		10.742057		2,471	0.00%	7.42%	05/02/05
Gartmore GVIT III – Global Technology and Communications Fund: Class III
2005	0.00%	2,428		12.317458		29,907	0.00%	23.17%	05/02/05
Gartmore GVIT ID II – Aggressive Fund – Class II
2005	0.00%	530		13.521320		7,166	1.95%	7.93%
2004	0.00%	84		12.527746		1,052	1.75%	14.03%
2003	0.00%	86		10.986753		945	1.41%	31.87%
Gartmore GVIT ID II – Conservative Fund – Class II
2005	0.00%	966		11.724859		11,326	2.78%	3.31%
2004	0.00%	5,030		11.349571		57,088	2.46%	4.65%
2003	0.00%	4,630		10.845040		50,213	2.37%	7.91%
2002	0.00%	10,505		10.050418		105,580	2.80%	0.50%	01/25/02
Gartmore GVIT ID II – Moderate Fund – Class II
2005	0.00%	72,624		12.661618		919,537	2.36%	5.34%
2004	0.00%	57,958		12.019313		696,615	2.27%	9.54%
2003	0.00%	26,164		10.972970		287,097	2.06%	20.05%
2002	0.00%	14,854		9.140249		135,769	1.72%	-8.60%	01/25/02
Gartmore GVIT ID II – Moderately Aggressive Fund – Class II
2005	0.00%	25,104		13.204972		331,498	2.14%	7.07%
2004	0.00%	24,722		12.332826		304,892	1.97%	12.09%
2003	0.00%	10,934		11.002361		120,300	1.54%	26.64%
2002	0.00%	14,728		8.687687		127,952	1.55%	-13.12%	01/25/02

(Continued)

62

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Gartmore GVIT ID II – Moderately Conservative Fund – Class II
2005	0.00%	9,208	$	12.275099	$	113,029	2.75%	4.49%
2004	0.00%	27,902		11.748118		327,796	2.48%	7.16%
2003	0.00%	21,041		10.963279		230,678	2.34%	13.70%
2002	0.00%	9,155		9.642427		88,276	2.35%	-3.58%	01/25/02
Janus AS – Balanced Portfolio – Service Shares
2005	0.00%	5,050		12.860543		64,946	2.56%	7.66%
2004	0.00%	668		11.945467		7,980	3.27%	8.29%
Janus AS – Forty Portfolio – Service Shares
2005	0.00%	51,138		8.323593		425,652	0.01%	12.56%
2004	0.00%	46,432		7.395085		343,369	0.02%	17.97%
2003	0.00%	57,199		6.268750		358,566	0.25%	20.23%
2002	0.00%	58,881		5.213836		306,996	0.30%	-15.93%
2001	0.00%	62,604		6.201616		388,246	0.91%	-21.83%
Janus AS – Global Technology Portfolio – Service Shares
2005	0.00%	48,024		4.124323		198,066	0.00%	11.55%
2004	0.00%	46,310		3.697308		171,222	0.00%	0.57%
2003	0.00%	63,964		3.676479		235,162	0.00%	46.47%
2002	0.00%	54,722		2.510001		137,352	0.00%	-40.93%
2001	0.00%	58,616		4.249300		249,077	0.56%	-37.31%
Janus AS – International Growth Portfolio – Service Shares
2005	0.00%	38,214		9.523236		363,921	1.14%	31.94%
2004	0.00%	47,840		7.217918		345,305	0.83%	18.69%
2003	0.00%	43,445		6.081514		264,211	0.99%	34.53%
2002	0.00%	43,393		4.520472		196,157	0.67%	-25.76%
2001	0.00%	37,721		6.088787		229,675	0.70%	-23.43%
Janus AS – Risk-Managed Large Cap Core Portfolio – Service Shares
2005	0.00%	1,406		16.027544		22,535	1.43%	10.91%
MFS® VITSM – MFS Investors Growth Stock Series – Initial Class
2005	0.00%	704		13.231476		9,315	0.38%	4.49%
2004	0.00%	1,058		12.663111		13,398	0.00%	9.18%
MFS® VITSM – MFS Value Series – Initial Class
2005	0.00%	2,450		15.193770		37,225	0.65%	6.66%
2004	0.00%	2,060		14.245099		29,345	0.34%	15.18%
2003	0.00%	255		12.367820		3,154	0.00%	23.68%	05/01/03
Neuberger Berman AMT – International Portfolio – Class S
2005	0.00%	2,516		11.750261		29,564	0.22%	17.50%	05/02/05
Neuberger Berman AMT – Regency Portfolio – Class S
2005	0.00%	2,786		11.661977		32,490	0.00%	16.62%	05/02/05
Neuberger Berman AMT – Growth Portfolio® – I Class Shares
2005	0.00%	74,162		16.292408		1,208,278	0.00%	13.50%
2004	0.00%	79,436		14.354807		1,140,288	0.00%	16.60%
2003	0.00%	92,061		12.310867		1,133,351	0.00%	31.40%
2002	0.00%	91,607		9.369018		858,268	0.00%	-31.16%
2001	0.00%	194,831		13.610476		2,651,743	0.00%	-30.36%
Neuberger Berman AMT – Guardian Portfolio – I Class Shares
2005	0.00%	23,910		13.041591		311,824	0.14%	8.39%
2004	0.00%	34,354		12.031993		413,347	0.12%	15.81%
2003	0.00%	33,326		10.389042		346,225	0.84%	31.76%
2002	0.00%	40,952		7.884759		322,897	0.80%	-26.45%
2001	0.00%	42,795		10.719948		458,760	0.47%	-1.51%
Neuberger Berman AMT – Limited Maturity Bond Portfolio – I Class Shares
2005	0.00%	52,164		15.179497		791,823	2.61%	1.44%
2004	0.00%	57,882		14.963540		866,120	3.64%	0.78%
2003	0.00%	68,260		14.847857		1,013,515	4.41%	2.42%
2002	0.00%	78,261		14.496454		1,134,507	4.91%	5.34%
2001	0.00%	53,267		13.761786		733,049	5.78%	8.78%

(Continued)

63

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Neuberger Berman AMT – Partners Portfolio® – I Class Shares
2005	0.00%	203,136	$	23.735143	$	4,821,462	1.02%	18.04%
2004	0.00%	200,296		20.106864		4,027,324	0.01%	18.98%
2003	0.00%	212,651		16.900050		3,593,813	0.00%	35.09%
2002	0.00%	211,641		12.510433		2,647,721	0.53%	-24.14%
2001	0.00%	214,234		16.491924		3,533,131	0.38%	-2.83%
Neuberger Berman AMT – Socially Responsive Portfolio® – I Class Shares
2005	0.00%	2,042		14.979202		30,588	0.00%	6.86%
2004	0.00%	510		14.018027		7,149	0.00%	13.28%
2003	0.00%	42		12.374746		520	0.00%	23.75%	05/01/03
Neuberger Berman AMT – Fasciano Portfolio – S Class Shares
2005	0.00%	854		14.513954		12,395	0.00%	2.90%
2004	0.00%	486		14.105334		6,855	0.00%	11.88%
Neuberger Berman AMT – Mid Cap Growth Portfolio® – S Class Shares
2005	0.00%	2,328		16.217741		37,755	0.00%	13.42%
2004	0.00%	3,532		14.298387		50,502	0.00%	16.03%
2003	0.00%	2,927		12.322580		36,068	0.00%	23.23%	05/01/03
Oppenheimer Funds – Aggressive Growth Fund/VA – Initial Class
2005	0.00%	17,266		6.561616		113,293	0.00%	12.33%
2004	0.00%	34,910		5.841557		203,929	0.00%	19.78%
2003	0.00%	27,076		4.877042		132,051	0.00%	25.59%
2002	0.00%	11,406		3.883303		44,293	0.65%	-27.79%
2001	0.00%	27,049		5.377832		145,465	0.87%	-31.27%
Oppenheimer Funds – Capital Appreciation Fund/VA – Initial Class
2005	0.00%	81,160		17.301818		1,404,216	0.93%	5.10%
2004	0.00%	83,842		16.462506		1,380,249	0.33%	6.94%
2003	0.00%	98,014		15.394717		1,508,898	0.38%	30.94%
2002	0.00%	90,095		11.756809		1,059,230	0.64%	-26.86%
2001	0.00%	116,791		16.074008		1,877,299	0.64%	-12.58%
Oppenheimer Funds – Global Securities Fund/VA – Initial Class
2005	0.00%	90,550		33.631650		3,045,346	1.07%	14.31%
2004	0.00%	105,104		29.422164		3,092,387	1.25%	19.16%
2003	0.00%	103,002		24.690704		2,543,192	0.76%	43.02%
2002	0.00%	106,692		17.263833		1,841,913	0.56%	-22.13%
2001	0.00%	111,537		22.171331		2,472,924	0.69%	-12.04%
Oppenheimer Funds – High Income Fund/VA – Initial Class
2005	0.00%	8,710		12.466334		108,582	6.75%	2.31%
2004	0.00%	12,018		12.184423		146,432	4.23%	8.97%
2003	0.00%	6,913		11.181817		77,300	0.00%	11.82%	05/01/03
Oppenheimer Funds – Main Street Fund®/VA – Initial Class
2005	0.00%	44,198		9.709756		429,152	1.25%	5.98%
2004	0.00%	28,322		9.162245		259,493	0.84%	9.46%
2003	0.00%	34,417		8.370485		288,087	0.90%	26.72%
2002	0.00%	30,456		6.605587		201,180	0.65%	-18.80%
2001	0.00%	21,240		8.134641		172,780	0.41%	-10.16%
Oppenheimer Funds – Main Street Small Cap Fund®/VA – Initial Class
2005	0.00%	1,242		18.206560		22,613	0.00%	9.92%
2004	0.00%	1,252		16.563464		20,737	0.00%	19.42%
2003	0.00%	2,855		13.869971		39,599	0.00%	38.70%	05/01/03
Oppenheimer Funds – Multiple Strategies Fund/VA – Initial Class
2005	0.00%	72,064		21.300283		1,534,984	1.76%	3.89%
2004	0.00%	76,060		20.502973		1,559,456	1.01%	10.10%
2003	0.00%	80,959		18.621945		1,507,614	2.82%	24.96%
2002	0.00%	82,462		14.902681		1,228,905	3.60%	-10.40%
2001	0.00%	84,920		16.632670		1,412,446	3.96%	2.22%
Oppenheimer Funds III – Global Securities Fund/VA – Class 3
2005	0.00%	28,160		12.059670		339,600	0.00%	20.60%	05/02/05

(Continued)

64

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Oppenheimer VAF – Oppenheimer Bond Fund/VA – Initial Class
2005	0.00%	91,754	$	17.632382	$	1,617,842	5.34%	2.59%
2004	0.00%	96,616		17.187703		1,660,607	4.80%	5.49%
2003	0.00%	113,252		16.292834		1,845,196	5.67%	6.78%
2002	0.00%	126,813		15.258399		1,934,963	7.25%	9.08%
2001	0.00%	120,742		13.988352		1,688,982	7.04%	7.79%
Putnam VT IB – Growth & Income Fund – IB Shares
2005	0.00%	1,222		14.527575		17,753	1.56%	5.23%
2004	0.00%	1,634		13.805820		22,559	1.66%	11.11%
Putnam VT IB – International Equity Fund – IB Shares
2005	0.00%	178		16.685441		2,970	1.11%	12.20%
Putnam VT IB – Voyager II Fund – IB Shares
2005	0.00%	2,746		13.159164		36,135	0.60%	5.69%
2004	0.00%	2,224		12.450430		27,690	0.19%	5.03%
2003	0.00%	42		11.853879		498	0.00%	18.54%	05/01/03
Strong VIF – Strong International Stock Fund II
2002	0.00%	57,275		5.361165		307,061	4.04%	-26.54%
2001	0.00%	55,640		7.298468		406,087	0.00%	-22.14%
T. Rowe Price II – Blue Chip Growth Portfolio – II
2005	0.00%	2,948		11.314946		33,356	0.29%	13.15%	05/02/05
T. Rowe Price II – Equity Income Portfolio – II
2005	0.00%	3,790		10.636871		40,314	1.20%	6.37%	05/02/05
Van Eck WIT – Worldwide Bond Fund – Initial Class
2005	0.00%	12,460		16.461869		205,115	7.55%	-3.03%
2004	0.00%	14,838		16.976579		251,898	8.78%	9.15%
2003	0.00%	23,556		15.553340		366,374	1.75%	18.16%
2002	0.00%	39,706		13.162611		522,635	0.00%	21.66%
2001	0.00%	15,977		10.819530		172,864	4.39%	-5.10%
Van Eck WIT – Worldwide Emerging Markets Fund – Initial Class
2005	0.00%	83,034		16.694466		1,386,208	0.73%	32.00%
2004	0.00%	83,090		12.647730		1,050,900	0.59%	25.89%
2003	0.00%	79,411		10.046593		797,810	0.11%	54.19%
2002	0.00%	99,351		6.515847		647,356	0.20%	-2.90%
2001	0.00%	79,757		6.710492		535,209	0.00%	-1.81%
Van Eck WIT – Worldwide Hard Assets Fund – Initial Class
2005	0.00%	54,640		21.840496		1,193,365	0.30%	51.67%
2004	0.00%	41,778		14.400064		601,606	0.37%	24.23%
2003	0.00%	43,115		11.615034		500,782	0.48%	45.08%
2002	0.00%	40,828		8.006062		326,871	0.68%	-2.83%
2001	0.00%	32,526		8.239575		268,000	1.21%	-10.44%
Van Kampen UIF – Core Plus Fixed Income Portfolio – Class I
2005	0.00%	1,144		11.130805		12,734	3.62%	4.21%
2004	0.00%	622		10.680729		6,643	4.78%	4.37%
2003	0.00%	49		10.233765		501	0.00%	2.34%	05/01/03
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I
2005	0.00%	37,616		19.352478		727,963	7.52%	12.25%
2004	0.00%	37,346		17.240440		643,861	6.41%	10.06%
2003	0.00%	41,844		15.664315		655,458	0.00%	27.86%
2002	0.00%	36,681		12.250737		449,369	6.91%	9.22%
2001	0.00%	33,534		11.216363		376,130	9.40%	10.10%
Van Kampen UIF – U.S. Real Estate Portfolio – Class I
2005	0.00%	49,280		43.458397		2,141,630	1.22%	17.05%
2004	0.00%	57,878		37.127644		2,148,874	1.55%	36.39%
2003	0.00%	54,506		27.220749		1,483,694	0.00%	37.51%
2002	0.00%	52,407		19.795314		1,037,413	3.29%	-0.79%
2001	0.00%	58,299		19.952330		1,163,201	3.98%	9.84%

(Continued)

65

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Wells Fargo VTFSM – Wells Fargo Advantage Discovery Fund VT
2005	0.00%	16,270	$	20.726714	$	337,224	0.00%	8.27%
2004	0.00%	17,898		19.143146		342,624	0.00%	15.72%
2003	0.00%	18,929		16.542813		313,139	0.00%	39.43%
2002	0.00%	20,094		11.864827		238,412	0.00%	-12.02%
2001	0.00%	22,035		13.485135		297,145	0.72%	4.08%
Wells Fargo VTFSM – Wells Fargo Advantage Opportunity Fund VT
2005	0.00%	70,754		27.158853		1,921,597	0.00%	7.88%
2004	0.00%	85,426		25.174087		2,150,522	0.00%	18.22%
2003	0.00%	93,627		21.294252		1,993,717	0.07%	37.01%
2002	0.00%	98,264		15.542573		1,527,275	0.38%	-26.82%
2001	0.00%	103,859		21.238327		2,205,791	0.59%	-3.70%
Single Premium contracts issued prior to April 16, 1990 (policy years 11 and thereafter)
AIM VIF – Basic Value Fund – Series I Shares
2005	0.50%	27,146		15.143837		411,095	0.09%	5.21%
2004	0.50%	2,482		14.393873		35,726	0.00%	10.52%
AIM VIF – Capital Appreciation Fund – Series I Shares
2005	0.50%	288		14.192232		4,087	0.04%	8.29%
2004	0.50%	310		13.105225		4,063	0.00%	6.09%
2003	0.50%	1,364		12.965885		17,685	0.00%	29.66%	05/01/03
AIM VIF – Capital Development Fund – Series I Shares
2005	0.50%	3,614		16.250893		58,731	0.00%	9.06%
2004	0.50%	4,050		14.900870		60,349	0.00%	14.92%
Alliance VPSF – AllianceBernstein Growth & Income Portfolio – Class A
2005	0.50%	10,070		14.350279		144,507	1.68%	4.35%
2004	0.50%	9,008		13.752717		123,884	0.96%	10.91%
2003	0.50%	1,081		12.400313		13,405	0.00%	24.00%	05/01/03
Alliance VPSF – AllianceBernstein Small/Mid Cap Value Portfolio – Class A
2005	0.50%	26,464		17.364568		459,536	0.72%	6.38%
2004	0.50%	2,172		16.322856		35,453	0.13%	18.71%
American Century VP – Balanced Fund – Class I
2005	0.50%	50,386		23.844923		1,201,450	1.83%	4.41%
2004	0.50%	28,138		22.837145		642,592	1.68%	9.23%
2003	0.50%	10,265		20.907285		214,613	2.53%	18.86%
2002	0.50%	2,665		17.589248		46,875	2.63%	-10.01%
American Century VP – Capital Appreciation Fund – Class I
2005	0.50%	104,698		34.827698		3,646,390	0.00%	21.46%
2004	0.50%	59,666		28.675107		1,710,929	0.00%	7.05%
2003	0.50%	31,820		26.787231		852,370	0.00%	19.87%
2002	0.50%	13,972		22.346236		312,222	0.00%	-21.59%
2001	0.50%	2,922		28.500613		83,279	0.00%	-28.43%
American Century VP – Income & Growth Fund – Class I
2005	0.50%	83,992		12.529281		1,052,359	2.03%	4.11%
2004	0.50%	28,284		12.034610		340,387	1.44%	12.43%
2003	0.50%	14,230		10.704192		152,321	1.30%	28.71%
2002	0.50%	7,837		8.316655		65,178	1.10%	-19.77%
American Century VP – International Fund – Class I
2005	0.50%	109,946		19.793391		2,176,204	1.27%	12.69%
2004	0.50%	59,792		17.564316		1,050,206	0.58%	14.35%
2003	0.50%	27,774		15.360020		426,609	0.75%	23.89%
2002	0.50%	5,091		12.398163		63,119	0.79%	-20.77%
American Century VP – Mid Cap Value Fund – Class I
2005	0.50%	2,498		11.284751		28,189	1.06%	12.85%	05/02/05
American Century VP – Ultra® Fund – Class I
2005	0.50%	20,298		11.146133		226,244	0.00%	1.66%
2004	0.50%	28,728		10.964413		314,986	0.00%	10.12%
2003	0.50%	2,408		9.956460		23,975	0.00%	24.28%

(Continued)

66

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
American Century VP – Value Fund – Class I
2005	0.50%	121,762	$	22.794288	$	2,775,478	0.88%	4.51%
2004	0.50%	83,868		21.810391		1,829,194	1.01%	13.76%
2003	0.50%	31,176		19.171791		597,700	1.09%	28.32%
2002	0.50%	13,026		14.941112		194,623	0.90%	-13.06%
American Century VP – VistaSM Fund – Class I
2005	0.50%	242		11.425723		2,765	0.00%	14.26%	05/02/05
American Century VP II – Inflation Protection Fund – Class II
2005	0.50%	24,828		10.947391		271,802	4.38%	1.06%
2004	0.50%	9,540		10.832965		103,346	3.57%	5.28%
American Century VP III – International Fund – Class III
2005	0.50%	43,276		11.635157		503,523	0.00%	16.35%	05/02/05
Credit Suisse Trust – Global Small Cap Portfolio
2005	0.50%	12,544		14.702300		184,426	0.00%	15.57%
2004	0.50%	9,874		12.721972		125,617	0.00%	17.40%
2003	0.50%	6,096		10.836336		66,058	0.00%	46.92%
2002	0.50%	1,728		7.375606		12,745	0.00%	-34.49%
Credit Suisse Trust – International Focus Portfolio
2005	0.50%	62,308		14.460784		901,023	0.91%	16.85%
2004	0.50%	39,228		12.375012		485,447	0.99%	14.17%
2003	0.50%	14,533		10.839093		157,525	0.49%	32.43%
2002	0.50%	2,769		8.184926		22,664	0.00%	-20.30%
Credit Suisse Trust – Small Cap Growth Portfolio
2005	0.50%	125,444		18.549847		2,326,967	0.00%	-3.16%
2004	0.50%	82,304		19.155888		1,576,606	0.00%	10.32%
2003	0.50%	27,210		17.364452		472,487	0.00%	47.81%
2002	0.50%	6,039		11.748025		70,946	0.00%	-34.02%
Dreyfus IP – Small Cap Stock Index Portfolio – Service Class
2005	0.50%	38,160		13.570376		517,846	0.00%	6.70%
2004	0.50%	32,364		12.718312		411,615	0.50%	21.28%
2003	0.50%	6,160		10.487006		64,600	0.33%	37.09%
2002	0.50%	4,866		7.649570		37,223	0.27%	-23.50%	05/01/02
Dreyfus Investor, Inc. – Dreyfus Stock Index Fund, Inc. – Initial Shares
2005	0.50%	544,048		29.958454		16,298,837	1.60%	4.17%
2004	0.50%	347,660		28.759010		9,998,357	1.80%	10.09%
2003	0.50%	108,026		26.123506		2,822,018	1.51%	27.72%
2002	0.50%	26,741		20.453144		546,938	1.31%	-22.75%
2001	0.50%	1,122		26.476528		29,707	1.06%	-12.62%
Dreyfus Investor, Inc. – The Dreyfus Socially Responsible Growth Fund, Inc.
2005	0.50%	50,962		24.043585		1,225,309	0.00%	3.10%
2004	0.50%	31,910		23.320608		744,161	0.38%	5.68%
2003	0.50%	7,832		22.067029		172,829	0.11%	25.38%
2002	0.50%	876		17.600806		15,418	0.21%	-29.30%
Dreyfus VIF – Appreciation Portfolio – Initial Shares
2005	0.50%	71,712		14.180252		1,016,894	0.02%	3.86%
2004	0.50%	39,366		13.653414		537,480	1.63%	4.52%
2003	0.50%	15,431		13.062720		201,571	1.40%	20.57%
2002	0.50%	7,627		10.834553		82,635	1.14%	-17.13%
Dreyfus VIF – Developing Leaders Portfolio – Initial Shares
2005	0.50%	6,920		14.996047		103,773	0.00%	5.27%
2004	0.50%	4,108		14.244729		58,517	0.22%	10.79%
2003	0.50%	840		12.857964		10,801	0.08%	28.58%	05/01/03
Dreyfus VIF – Growth and Income Portfolio – Initial Shares
2005	0.50%	11,612		13.717541		159,288	1.34%	2.84%
2004	0.50%	10,312		13.338990		137,552	1.23%	6.93%
2003	0.50%	6,368		12.474297		79,436	0.84%	25.94%
Federated IS – American Leaders Fund II – Primary Shares
2005	0.50%	6,978		14.333441		100,019	1.33%	4.50%
2004	0.50%	2,628		13.716228		36,046	0.41%	9.23%

(Continued)

67

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Federated IS – Capital Appreciation Fund II – Primary Shares
2005	0.50%	1,354	$	13.017510	$	17,626	1.07%	1.41%
2004	0.50%	1,276		12.836844		16,380	0.28%	6.86%
Federated IS – Quality Bond Fund II – Primary Shares
2005	0.50%	16,246		11.628696		188,920	3.65%	0.79%
2004	0.50%	9,180		11.537144		105,911	4.98%	3.10%
2003	0.50%	4,444		11.189906		49,728	3.93%	4.12%
Fidelity® VIP – Equity-Income Portfolio: Initial Class
2005	0.50%	344,836		56.848284		19,603,335	1.64%	5.34%
2004	0.50%	187,988		53.967094		10,145,166	1.56%	10.97%
2003	0.50%	86,371		48.630667		4,200,279	1.80%	29.68%
2002	0.50%	25,078		37.500399		940,435	1.77%	-17.36%
2001	0.50%	3,200		45.378727		145,212	1.70%	-5.43%
Fidelity® VIP – Growth Portfolio: Initial Class
2005	0.50%	390,486		57.613946		22,497,439	0.51%	5.27%
2004	0.50%	263,644		54.728412		14,428,817	0.27%	2.86%
2003	0.50%	105,480		53.205281		5,612,093	0.27%	32.19%
2002	0.50%	39,628		40.250246		1,595,037	0.25%	-30.45%
2001	0.50%	3,370		57.875878		195,042	0.08%	-18.06%
Fidelity® VIP – High Income Portfolio: Initial Class
2005	0.50%	175,964		28.752380		5,059,384	16.14%	2.19%
2004	0.50%	140,176		28.136168		3,944,015	8.82%	9.05%
2003	0.50%	55,652		25.802029		1,435,935	5.94%	26.63%
2002	0.50%	2,722		20.375870		55,463	9.29%	2.93%
2001	0.50%	1,784		19.796324		35,317	13.67%	-12.17%
Fidelity® VIP – Overseas Portfolio: Initial Class
2005	0.50%	187,952		33.055758		6,212,896	0.71%	18.45%
2004	0.50%	160,928		27.905999		4,490,857	1.14%	13.07%
2003	0.50%	58,985		24.680530		1,455,781	0.83%	42.65%
2002	0.50%	16,114		17.300971		278,788	0.83%	-20.68%
2001	0.50%	2,274		21.810922		49,598	5.37%	-21.56%
Fidelity® VIP – Overseas Portfolio: Service Class R
2005	0.50%	108,508		12.458682		1,351,867	0.00%	24.59%	05/02/05
Fidelity® VIP II – Asset Manager Portfolio: Initial Class
2005	0.50%	288,746		32.768260		9,461,704	2.76%	3.53%
2004	0.50%	209,976		31.651957		6,646,151	2.76%	4.94%
2003	0.50%	84,282		30.161112		2,542,039	3.62%	17.39%
2002	0.50%	7,255		25.693764		186,408	3.98%	-9.18%
2001	0.50%	1,169		28.291882		33,073	4.21%	-4.57%
Fidelity® VIP II – Contrafund® Portfolio: Initial Class
2005	0.50%	418,680		32.738236		13,706,845	0.29%	16.36%
2004	0.50%	222,346		28.136431		6,256,023	0.34%	14.90%
2003	0.50%	101,752		24.487594		2,491,662	0.46%	27.82%
2002	0.50%	11,284		19.157346		216,171	0.85%	-9.80%
Fidelity® VIP II – Investment Grade Bond Portfolio: Service Class
2005	0.50%	47,416		10.736671		509,090	1.67%	1.57%
2004	0.50%	14,444		10.570462		152,680	1.88%	3.80%
2003	0.50%	9,748		10.183621		99,270	0.00%	1.84%	05/01/03
Fidelity® VIP III – Growth Opportunities Portfolio: Initial Class
2005	0.50%	36,764		11.485107		422,238	0.95%	8.35%
2004	0.50%	38,174		10.600065		404,647	0.53%	6.66%
2003	0.50%	20,500		9.938499		203,739	0.74%	29.23%
2002	0.50%	3,061		7.690844		23,542	1.07%	-22.23%
2001	0.50%	1,210		9.889817		11,967	0.38%	-14.85%
Fidelity® VIP III – Mid Cap Portfolio: Service Class
2005	0.50%	105,862		20.498936		2,170,058	0.00%	17.62%
2004	0.50%	28,738		17.428707		500,866	0.00%	24.15%
2003	0.50%	2,295		14.038431		32,218	0.00%	40.38%	05/01/03

(Continued)

68

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Fidelity® VIP III – Value Strategies Portfolio: Service Class
2005	0.50%	16,310	$	13.600017	$	221,816	0.00%	2.04%
2004	0.50%	22,246		13.327560		296,485	0.00%	13.42%
2003	0.50%	15,781		11.750739		185,438	0.00%	57.00%
Fidelity® VIP IV – Natural Resources Portfolio: Service Class 2
2005	0.50%	42,914		13.469693		578,038	0.65%	34.70%	05/02/05
Fidelity® VIP FF – Freedom Fund 2010 Portfolio: Service Class
2005	0.50%	1,590		10.770315		17,125	0.56%	7.70%	05/02/05
Fidelity® VIP FF – Freedom Fund 2020 Portfolio: Service Class
2005	0.50%	3,540		11.081899		39,230	0.86%	10.82%	05/02/05
Franklin Templeton VIP – Franklin Rising Dividends Securities Fund – Class I
2005	0.50%	76,976		14.007257		1,078,223	1.09%	3.17%
2004	0.50%	45,226		13.577316		614,048	0.66%	10.70%
2003	0.50%	11,618		12.265513		142,501	0.20%	22.66%	05/01/03
Franklin Templeton VIP – Franklin Small Cap Value Securities Fund – Class I
2005	0.50%	47,146		17.825857		840,418	0.91%	8.45%
2004	0.50%	20,500		16.437638		336,972	0.19%	23.47%
2003	0.50%	2,305		13.312843		30,686	0.12%	33.13%	05/01/03
Franklin Templeton VIP – Templeton Foreign Securities Fund – Class I
2005	0.50%	26,236		17.195159		451,132	1.37%	9.93%
2004	0.50%	10,062		15.642411		157,394	1.10%	18.28%
2003	0.50%	2,090		13.224912		27,640	0.79%	32.25%	05/01/03
Franklin Templeton VIP III – Franklin Global Income Securities Fund – Class 3
2005	0.50%	2,394		9.848458		23,577	7.95%	-1.52%	05/02/05
Franklin Templeton VIP III – Templeton Developing Markets Securities Fund – Class 3
2005	0.50%	17,310		12.761961		220,910	0.53%	27.62%	05/02/05
Franklin Templeton VIP III – Templeton Foreign Securities Fund – Class 3
2005	0.50%	21,078		11.251218		237,153	0.39%	12.51%	05/02/05
Gartmore GVIT – Dreyfus International Value Fund – Class I
2005	0.50%	24,690		18.551760		458,043	1.34%	11.54%
2004	0.50%	15,934		16.633064		265,031	2.03%	19.69%
2003	0.50%	4,952		13.791985		68,298	0.00%	37.92%	05/01/03
Gartmore GVIT – Dreyfus Mid Cap Index Fund – Class I
2005	0.50%	137,224		14.928625		2,048,566	1.03%	11.54%
2004	0.50%	57,928		13.383987		775,308	0.54%	15.15%
2003	0.50%	19,389		11.622612		225,351	0.49%	33.98%
2002	0.50%	7,249		8.674888		62,884	0.42%	-15.73%
Gartmore GVIT – Emerging Markets Fund: Class I
2005	0.50%	39,142		18.054599		706,693	0.61%	31.98%
2004	0.50%	26,586		13.680089		363,699	0.93%	20.14%
2003	0.50%	17,288		11.386650		196,852	0.66%	64.44%
Gartmore GVIT – Federated High Income Bond Fund: Class I
2005	0.50%	4,370		12.367140		54,044	6.81%	1.87%
2004	0.50%	25,084		12.139983		304,519	8.50%	9.55%
Gartmore GVIT – Global Financial Services Fund: Class I
2005	0.50%	7,780		16.182094		125,897	2.00%	10.60%
2004	0.50%	3,124		14.631389		45,708	1.45%	20.39%
2003	0.50%	629		12.153349		7,644	0.88%	40.75%
Gartmore GVIT – Global Health Sciences Fund: Class I
2005	0.50%	7,318		13.092046		95,808	0.00%	7.90%
2004	0.50%	10,306		12.133480		125,048	0.00%	7.32%
2003	0.50%	3,699		11.305727		41,820	0.00%	36.01%
Gartmore GVIT – Global Technology and Communications Fund: Class I
2005	0.50%	33,760		3.094710		104,477	0.00%	-1.01%
2004	0.50%	29,620		3.126331		92,602	0.00%	3.79%
2003	0.50%	44,144		3.012098		132,966	0.00%	54.46%
2002	0.50%	2,129		1.950112		4,152	0.59%	-43.07%
Gartmore GVIT – Global Utilities Fund: Class I
2005	0.50%	18,728		14.624338		273,885	2.16%	5.86%
2004	0.50%	10,822		13.814954		149,505	1.92%	29.32%

(Continued)

69

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Gartmore GVIT – Government Bond Fund: Class I
2005	0.50%	64,816	$	32.062663	$	2,078,174	3.64%	2.75%
2004	0.50%	43,088		31.204592		1,344,543	5.48%	2.75%
2003	0.50%	20,794		30.370279		631,520	3.14%	1.49%
2002	0.50%	10,251		29.923916		306,750	4.42%	10.43%
2001	0.50%	1,291		27.097613		34,983	5.12%	6.72%
Gartmore GVIT – Growth Fund – Class I
2005	0.50%	111,080		18.233340		2,025,359	0.08%	5.97%
2004	0.50%	72,558		17.206018		1,248,434	0.33%	7.62%
2003	0.50%	13,689		15.988156		218,862	0.02%	32.08%
2002	0.50%	10,305		12.105122		124,743	0.00%	-29.08%
Gartmore GVIT – International Growth Fund: Class I
2005	0.50%	4,962		9.839331		48,823	1.03%	29.56%
2004	0.50%	1,290		7.594318		9,797	1.40%	13.62%
Gartmore GVIT – Mid Cap Growth Fund: Class I
2005	0.50%	72,740		6.169108		448,741	0.00%	9.20%
2004	0.50%	87,438		5.649583		493,988	0.00%	14.76%
2003	0.50%	74,157		4.922829		365,062	0.00%	39.44%
Gartmore GVIT – Money Market Fund – Class I
2005	0.50%	305,794		19.028333		5,818,750	2.64%	2.16%
2004	0.50%	162,122		18.626719		3,019,801	0.78%	0.31%
2003	0.50%	103,301		18.569650		1,918,271	0.63%	0.12%
2002	0.50%	12,207		18.546928		226,402	1.26%	0.71%
2001	0.50%	7,295		18.417013		134,352	3.57%	3.08%
Gartmore GVIT – Nationwide® Fund: Class I
2005	0.50%	297,534		44.533940		13,250,361	0.91%	6.91%
2004	0.50%	167,838		41.656679		6,991,574	1.28%	9.20%
2003	0.50%	19,074		38.145818		727,593	0.56%	26.88%
2002	0.50%	3,981		30.065207		119,690	0.85%	-17.77%
2001	0.50%	1,162		36.560512		42,483	0.74%	-12.26%
Gartmore GVIT – Nationwide® Leaders Fund: Class I
2005	0.50%	9,478		13.635788		129,240	1.54%	9.76%
2004	0.50%	2,600		12.422944		32,300	0.52%	18.20%
2003	0.50%	588		10.510022		6,180	0.19%	24.76%
Gartmore GVIT – Small Cap Growth Fund: Class I
2005	0.50%	36,714		7.727049		283,691	0.00%	7.55%
2004	0.50%	32,220		7.184440		231,483	0.00%	12.85%
2003	0.50%	10,334		6.366359		65,790	0.00%	33.60%
Gartmore GVIT – Small Cap Value Fund: Class I
2005	0.50%	164,618		20.856322		3,433,326	0.06%	2.56%
2004	0.50%	100,222		20.335711		2,038,086	0.00%	16.71%
2003	0.50%	31,504		17.423619		548,914	0.00%	56.07%
2002	0.50%	4,939		11.163801		55,138	0.01%	-27.53%
2001	0.50%	16,203		15.403979		249,591	0.03%	27.63%
Gartmore GVIT – Small Company Fund: Class I
2005	0.50%	159,914		35.701630		5,709,190	0.00%	11.76%
2004	0.50%	94,992		31.945431		3,034,560	0.00%	18.43%
2003	0.50%	45,264		26.974404		1,220,969	0.00%	40.31%
2002	0.50%	13,072		19.224829		251,307	0.00%	-17.74%
2001	0.50%	749		23.371178		17,505	0.10%	-7.17%
Gartmore GVIT – Turner Growth Focus Fund – Class I
2003	0.50%	17,823		3.283013		58,513	0.00%	50.21%
Gartmore GVIT – U.S. Growth Leaders Fund: Class I
2005	0.50%	14,474		15.465102		223,842	0.00%	11.41%
2004	0.50%	21,016		13.881788		291,740	0.00%	11.85%
2003	0.50%	8,655		12.411260		107,419	0.00%	51.38%
Gartmore GVIT – Van Kampen Multi Sector Bond Fund – Class I
2005	0.50%	11,354		13.904678		157,874	3.89%	1.67%
2004	0.50%	9,006		13.676033		123,166	4.85%	6.00%
2003	0.50%	2,912		12.901625		37,570	5.47%	11.56%
2002	0.50%	360		11.565028		4,163	4.53%	6.67%

(Continued)

70

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Gartmore GVIT – Van Kampen Value Fund – Class I
2005	0.50%	15,396	$	15.316704	$	235,816	1.69%	3.73%
2004	0.50%	7,480		14.766163		110,451	1.56%	16.91%
2003	0.50%	570		12.630064		7,199	1.52%	26.30%	05/01/03
Gartmore GVIT III – Dreyfus International Value Fund – Class III
2005	0.50%	44,904		11.414099		512,539	0.95%	14.14%	05/02/05
Gartmore GVIT III – Emerging Markets Fund: Class III
2005	0.50%	42,298		13.292850		562,261	0.19%	32.93%	05/02/05
Gartmore GVIT III – Federated High Income Bond Fund: Class III
2005	0.50%	4,790		10.505908		50,323	6.33%	5.06%	05/02/05
Gartmore GVIT III – Global Health Sciences Fund: Class III
2005	0.50%	20,616		10.706525		220,726	0.00%	7.07%	05/02/05
Gartmore GVIT III – Global Technology and Communications Fund: Class III
2005	0.50%	18,758		12.276743		230,287	0.00%	22.77%	05/02/05
Gartmore GVIT ID II – Aggressive Fund – Class II
2005	0.50%	59,996		13.258370		795,449	1.95%	7.39%
2004	0.50%	49,550		12.345496		611,719	1.75%	13.46%
Gartmore GVIT ID II – Conservative Fund – Class II
2005	0.50%	8,068		11.496816		92,756	2.78%	2.79%
2004	0.50%	2,158		11.184449		24,136	2.46%	4.13%
2003	0.50%	1,037		10.740821		11,138	2.37%	7.37%
Gartmore GVIT ID II – Moderate Fund – Class II
2005	0.50%	129,056		12.415323		1,602,272	2.36%	4.82%
2004	0.50%	85,112		11.844428		1,008,103	2.27%	8.99%
2003	0.50%	16,518		10.867503		179,509	2.06%	19.45%
Gartmore GVIT ID II – Moderately Aggressive Fund – Class II
2005	0.50%	81,078		12.948162		1,049,811	2.14%	6.54%
2004	0.50%	41,042		12.153407		498,800	1.97%	11.53%
Gartmore GVIT ID II – Moderately Conservative Fund – Class II
2005	0.50%	18,510		12.036367		222,793	2.75%	3.97%
2004	0.50%	9,360		11.577210		108,363	2.48%	6.62%
Janus AS – Balanced Portfolio – Service Shares
2005	0.50%	1,282		12.690331		16,269	2.56%	7.13%
2004	0.50%	730		11.846263		8,648	3.27%	7.75%
Janus AS – Forty Portfolio – Service Shares
2005	0.50%	44,888		8.091082		363,192	0.01%	12.00%
2004	0.50%	23,622		7.224414		170,655	0.02%	17.38%
2003	0.50%	7,149		6.154757		44,000	0.25%	19.63%
2002	0.50%	12,685		5.144661		65,260	0.30%	-16.35%
Janus AS – Global Technology Portfolio – Service Shares
2005	0.50%	36,250		4.009018		145,327	0.00%	10.99%
2004	0.50%	16,918		3.611898		61,106	0.00%	0.06%
2003	0.50%	8,256		3.609555		29,800	0.00%	45.74%
2002	0.50%	3,149		2.476639		7,799	0.00%	-41.23%
Janus AS – International Growth Portfolio – Service Shares
2005	0.50%	62,034		9.257232		574,263	1.14%	31.28%
2004	0.50%	11,248		7.051335		79,313	0.83%	18.09%
2003	0.50%	7,242		5.970919		43,241	0.99%	33.86%
2002	0.50%	12,584		4.460490		56,131	0.67%	-26.13%
Janus AS – Risk-Managed Large Cap Core Portfolio – Service Shares
2005	0.50%	3,292		15.815517		52,065	1.43%	10.36%
2004	0.50%	2,006		14.330811		28,748	2.29%	16.88%
MFS® VITSM – MFS Investors Growth Stock Series – Initial Class
2005	0.50%	9,568		13.056404		124,924	0.38%	3.97%
2004	0.50%	4,150		12.557998		52,116	0.00%	8.64%
2003	0.50%	1,131		11.559230		13,073	0.00%	15.59%	05/01/03
MFS® VITSM – MFS Value Series – Initial Class
2005	0.50%	8,422		14.992740		126,269	0.65%	6.13%
2004	0.50%	1,594		14.126859		22,518	0.34%	14.60%

(Continued)

71

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Neuberger Berman AMT – International Portfolio – Class S
2005	0.50%	490	$	11.711411	$	5,739	0.22%	17.11%	05/02/05
Neuberger Berman AMT – Regency Portfolio – Class S
2005	0.50%	2,318		11.623425		26,943	0.00%	16.23%	05/02/05
Neuberger Berman AMT – Balanced Portfolio® – I Class Shares
2005	0.50%	1,038		11.494958		11,932	1.03%	8.64%
2004	0.50%	408		10.580939		4,317	1.30%	8.76%
2003	0.50%	387		9.728263		3,765	1.91%	15.70%
Neuberger Berman AMT – Growth Portfolio® – I Class Shares
2005	0.50%	111,124		38.986368		4,332,321	0.00%	12.93%
2004	0.50%	72,940		34.521424		2,517,993	0.00%	16.02%
2003	0.50%	24,292		29.754395		722,794	0.00%	30.75%
2002	0.50%	5,671		22.757505		129,058	0.00%	-31.51%
2001	0.50%	3,126		33.226236		103,865	0.00%	-30.71%
Neuberger Berman AMT – Guardian Portfolio – I Class Shares
2005	0.50%	42,392		12.551167		532,069	0.14%	7.85%
2004	0.50%	32,314		11.637402		376,051	0.12%	15.24%
2003	0.50%	12,247		10.098680		123,679	0.84%	31.10%
2002	0.50%	870		7.702769		6,701	0.80%	-26.82%
Neuberger Berman AMT – Limited Maturity Bond Portfolio – I Class Shares
2005	0.50%	38,328		22.640077		867,749	2.61%	0.94%
2004	0.50%	37,986		22.429536		852,008	3.64%	0.28%
2003	0.50%	20,267		22.367675		453,326	4.41%	1.91%
2002	0.50%	4,156		21.947749		91,215	4.91%	4.81%
2001	0.50%	2,817		20.939856		58,988	5.78%	8.24%
Neuberger Berman AMT – Partners Portfolio® – I Class Shares
2005	0.50%	163,828		34.231207		5,608,030	1.02%	17.46%
2004	0.50%	72,448		29.143256		2,111,371	0.01%	18.38%
2003	0.50%	15,209		24.617984		374,415	0.00%	34.41%
2002	0.50%	7,065		18.314930		129,395	0.53%	-24.52%
Neuberger Berman AMT – Socially Responsive Portfolio® – I Class Shares
2005	0.50%	2,512		14.781029		37,130	0.00%	6.33%
2004	0.50%	98		13.901675		1,362	0.00%	12.71%
Neuberger Berman AMT – Fasciano Portfolio – S Class Shares
2005	0.50%	5,906		14.321953		84,585	0.00%	2.39%
2004	0.50%	4,114		13.988281		57,548	0.00%	11.32%
Neuberger Berman AMT – Mid Cap Growth Portfolio® – S Class Shares
2005	0.50%	5,284		16.003177		84,561	0.00%	12.86%
2004	0.50%	2,568		14.179701		36,413	0.00%	15.46%
2003	0.50%	1,669		12.281545		20,498	0.00%	22.82%	05/01/03
Oppenheimer Funds – Aggressive Growth Fund/VA – Initial Class
2005	0.50%	62,332		6.378300		397,572	0.00%	11.77%
2004	0.50%	50,906		5.706718		290,506	0.00%	19.18%
2003	0.50%	15,822		4.788336		75,761	0.00%	24.96%
2002	0.50%	2,385		3.831748		9,139	0.65%	-28.15%
Oppenheimer Funds – Capital Appreciation Fund/VA – Initial Class
2005	0.50%	154,400		16.535627		2,553,101	0.93%	4.58%
2004	0.50%	104,114		15.812092		1,646,260	0.33%	6.40%
2003	0.50%	43,463		14.860580		645,885	0.38%	30.29%
2002	0.50%	9,164		11.405697		104,522	0.64%	-27.22%
2001	0.50%	8,487		15.672302		133,011	0.64%	-13.02%
Oppenheimer Funds – Global Securities Fund/VA – Initial Class
2005	0.50%	262,628		39.620511		10,405,456	1.07%	13.74%
2004	0.50%	191,944		34.834576		6,686,288	1.25%	18.57%
2003	0.50%	33,503		29.379176		984,291	0.76%	42.31%
2002	0.50%	4,420		20.644823		91,250	0.56%	-22.52%
Oppenheimer Funds – High Income Fund/VA – Initial Class
2005	0.50%	17,466		12.301306		214,855	6.75%	1.80%
2004	0.50%	14,518		12.083237		175,424	4.23%	8.42%
2003	0.50%	8,543		11.144531		95,208	0.00%	11.45%	05/01/03

(Continued)

72

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Oppenheimer Funds – Main Street Fund® /VA – Initial Class
2005	0.50%	48,678	$	9.438598	$	459,452	1.25%	5.45%
2004	0.50%	33,884		8.950876		303,291	0.84%	8.91%
2003	0.50%	10,060		8.218350		82,677	0.90%	26.09%
2002	0.50%	3,493		6.518000		22,767	0.65%	-19.20%
Oppenheimer Funds – Main Street Small Cap Fund® /VA – Initial Class
2005	0.50%	6,094		17.965801		109,484	0.00%	9.37%
2004	0.50%	554		16.426073		9,100	0.00%	18.82%
Oppenheimer Funds – Multiple Strategies Fund/VA – Initial Class
2005	0.50%	102,966		35.300804		3,634,783	1.76%	3.37%
2004	0.50%	54,126		34.149236		1,848,362	1.01%	9.55%
2003	0.50%	23,053		31.171669		718,600	2.82%	24.33%
2002	0.50%	9,549		25.070852		239,402	3.60%	-10.85%
Oppenheimer Funds III – Global Securities Fund/VA – Class 3
2005	0.50%	63,366		12.019802		761,647	0.00%	20.20%	05/02/05
Oppenheimer VAF – Oppenheimer Bond Fund/VA – Initial Class
2005	0.50%	85,328		26.785454		2,285,549	5.34%	2.08%
2004	0.50%	73,062		26.240474		1,917,182	4.80%	4.97%
2003	0.50%	32,391		24.998938		809,741	5.67%	6.25%
2002	0.50%	379		23.529109		8,918	7.25%	8.54%
2001	0.50%	47		21.678723		1,019	7.04%	7.25%
Putnam VT IB – Growth & Income Fund – IB Shares
2005	0.50%	486		14.335363		6,967	1.56%	4.70%
2004	0.50%	236		13.691228		3,231	1.66%	10.56%
Putnam VT IB – International Equity Fund – IB Shares
2005	0.50%	1,404		16.464692		23,116	1.11%	11.64%
2004	0.50%	1,000		14.748085		14,748	1.61%	15.62%
Putnam VT IB – Voyager II Fund – IB Shares
2005	0.50%	2,788		12.985042		36,202	0.60%	5.17%
2004	0.50%	720		12.347084		8,890	0.19%	4.51%
Strong VIF – Strong International Stock Fund II
2002	0.50%	392		5.758212		2,257	4.04%	-26.91%
T. Rowe Price II – Blue Chip Growth Portfolio – II
2005	0.50%	818		11.277528		9,225	0.29%	12.78%	05/02/05
T. Rowe Price II – Equity Income Portfolio – II
2005	0.50%	5,032		10.601687		53,348	1.20%	6.02%	05/02/05
T. Rowe Price II – Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio – Class II
2005	0.50%	540		10.094160		5,451	1.39%	0.94%	05/02/05
Van Eck WIT – Worldwide Bond Fund – Initial Class
2005	0.50%	43,868		21.853802		958,683	7.55%	-3.51%
2004	0.50%	36,364		22.649785		823,637	8.78%	8.61%
2003	0.50%	19,995		20.854897		416,994	1.75%	17.57%
2002	0.50%	4,159		17.737696		73,771	0.00%	21.05%
2001	0.50%	1,086		14.653212		15,913	4.39%	-5.57%
Van Eck WIT – Worldwide Emerging Markets Fund – Initial Class
2005	0.50%	142,848		15.870762		2,267,107	0.73%	31.34%
2004	0.50%	56,568		12.083728		683,552	0.59%	25.26%
2003	0.50%	60,208		9.646671		580,807	0.11%	53.42%
2002	0.50%	32,774		6.287778		206,076	0.20%	-3.39%
Van Eck WIT – Worldwide Hard Assets Fund – Initial Class
2005	0.50%	94,726		31.007818		2,937,247	0.30%	50.92%
2004	0.50%	65,614		20.546330		1,348,127	0.37%	23.61%
2003	0.50%	19,105		16.655601		318,205	0.48%	44.36%
2002	0.50%	7,750		11.537923		89,419	0.68%	-3.32%
2001	0.50%	4		11.933986		48	1.21%	-10.89%
Van Kampen UIF – Core Plus Fixed Income Portfolio – Class I
2005	0.50%	10,072		10.983426		110,625	3.62%	3.70%
2004	0.50%	3,084		10.591991		32,666	4.78%	3.85%

(Continued)

73

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I
2005	0.50%	28,944	$	18.495488	$	535,333	7.52%	11.69%
2004	0.50%	16,150		16.559313		267,433	6.41%	9.51%
2003	0.50%	7,714		15.120856		116,642	0.00%	27.23%
2002	0.50%	2,372		11.884934		28,191	6.91%	8.68%
2001	0.50%	1,244		10.935992		13,604	9.40%	9.55%
Van Kampen UIF – U.S. Real Estate Portfolio – Class I
2005	0.50%	94,426		45.366664		4,283,793	1.22%	16.47%
2004	0.50%	69,458		38.951553		2,705,497	1.55%	35.71%
2003	0.50%	28,086		28.701013		806,097	0.00%	36.83%
2002	0.50%	10,521		20.976263		220,691	3.29%	-1.28%
Wells Fargo VTFSM – Wells Fargo Advantage Discovery Fund VT
2005	0.50%	83,820		32.700726		2,740,975	0.00%	7.73%
2004	0.50%	50,972		30.353233		1,547,165	0.00%	15.14%
2003	0.50%	18,256		26.361651		481,258	0.00%	38.73%
2002	0.50%	2,071		19.001713		39,353	0.00%	-12.45%
Wells Fargo VTFSM – Wells Fargo Advantage Opportunity Fund VT
2005	0.50%	200,868		51.392952		10,323,199	0.00%	7.35%
2004	0.50%	143,178		47.875122		6,854,664	0.00%	17.63%
2003	0.50%	38,309		40.699472		1,559,156	0.07%	36.32%
2002	0.50%	10,474		29.855056		312,702	0.38%	-27.18%
2001	0.50%	3,831		41.000669		157,074	0.59%	-4.19%
Multiple Payment contracts and Flexible Premium contracts
AIM VIF – Basic Value Fund – Series I Shares
2005	0.80%	24,934		15.023289		374,591	0.09%	4.90%
2004	0.80%	43,590		14.322072		624,299	0.00%	10.18%
2003	0.80%	14,499		12.998258		188,462	0.11%	29.98%	05/01/03
AIM VIF – Capital Appreciation Fund – Series I Shares
2005	0.80%	4,924		14.079275		69,326	0.04%	7.97%
2004	0.80%	4,090		13.039850		53,333	0.00%	5.78%
2003	0.80%	5,333		12.327742		65,744	0.00%	23.28%	05/01/03
AIM VIF – Capital Development Fund – Series I Shares
2005	0.80%	9,328		16.121553		150,382	0.00%	8.73%
2004	0.80%	9,498		14.826548		140,823	0.00%	14.58%
2003	0.80%	3,166		12.939952		40,968	0.00%	29.40%	05/01/03
Alliance VPSF – AllianceBernstein Growth & Income Portfolio – Class A
2005	0.80%	37,766		14.236062		537,639	1.68%	4.03%
2004	0.80%	38,966		13.684124		533,216	0.96%	10.57%
2003	0.80%	22,041		12.375515		272,769	0.00%	23.76%	05/01/03
Alliance VPSF – AllianceBernstein Small/Mid Cap Value Portfolio – Class A
2005	0.80%	29,330		17.226379		505,250	0.72%	6.06%
2004	0.80%	43,250		16.241455		702,443	0.13%	18.35%
2003	0.80%	11,736		13.722986		161,053	0.02%	37.23%	05/01/03
American Century VP – Balanced Fund – Class I
2005	0.80%	119,320		23.498278		2,803,815	1.83%	4.10%
2004	0.80%	159,436		22.572554		3,598,878	1.68%	8.90%
2003	0.80%	195,164		20.727117		4,045,187	2.53%	18.51%
2002	0.80%	196,895		17.490037		3,443,701	2.63%	-10.28%
2001	0.80%	201,384		19.493759		3,925,731	2.81%	-4.31%
American Century VP – Capital Appreciation Fund – Class I
2005	0.80%	365,618		21.718376		7,940,629	0.00%	21.09%
2004	0.80%	460,364		17.935168		8,256,706	0.00%	6.73%
2003	0.80%	592,724		16.804738		9,960,572	0.00%	19.51%
2002	0.80%	657,612		14.060797		9,246,549	0.00%	-21.83%
2001	0.80%	735,263		17.987270		13,225,374	0.00%	-28.64%
American Century VP – Income & Growth Fund – Class I
2005	0.80%	157,452		12.244450		1,927,913	2.03%	3.80%
2004	0.80%	220,344		11.796249		2,599,233	1.44%	12.09%
2003	0.80%	259,996		10.523680		2,736,115	1.30%	28.32%
2002	0.80%	289,017		8.200926		2,370,207	1.10%	-20.01%
2001	0.80%	322,604		10.252927		3,307,635	0.81%	-9.09%

(Continued)

74

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
American Century VP – International Fund – Class I
2005	0.80%	311,096	$	19.440637	$	6,047,904	1.27%	12.35%
2004	0.80%	471,466		17.302961		8,157,758	0.58%	14.01%
2003	0.80%	587,899		15.176915		8,922,493	0.75%	23.52%
2002	0.80%	679,193		12.287143		8,345,342	0.79%	-21.01%
2001	0.80%	733,730		15.554724		11,412,968	0.09%	-29.74%
American Century VP – Mid Cap Value Fund – Class I
2005	0.80%	5,722		11.262347		64,443	1.06%	12.62%	05/02/05
American Century VP – Ultra® Fund – Class I
2005	0.80%	34,120		11.024259		376,148	0.00%	1.35%
2004	0.80%	37,042		10.877007		402,906	0.00%	9.79%
2003	0.80%	34,345		9.906750		340,247	0.00%	23.90%
2002	0.80%	7,959		7.995504		63,636	0.46%	-20.04%	05/01/02
American Century VP – Value Fund – Class I
2005	0.80%	333,368		22.307840		7,436,720	0.88%	4.20%
2004	0.80%	363,556		21.408869		7,783,323	1.01%	13.42%
2003	0.80%	461,113		18.875362		8,703,675	1.09%	27.93%
2002	0.80%	522,332		14.754246		7,706,615	0.90%	-13.32%
2001	0.80%	499,070		17.020923		8,494,632	0.95%	11.92%
American Century VP – VistaSM Fund – Class I
2005	0.80%	2,306		11.403054		26,295	0.00%	14.03%	05/02/05
American Century VP II – Inflation Protection Fund – Class II
2005	0.80%	71,902		10.859530		780,822	4.38%	0.75%
2004	0.80%	72,104		10.778433		777,168	3.57%	4.96%
2003	0.80%	6,574		10.268669		67,506	1.88%	2.69%	04/30/03
American Century VP III – International Fund – Class III
2005	0.80%	69,942		11.612061		812,171	0.00%	16.12%	05/02/05
Credit Suisse Trust – Global Small Cap Portfolio
2005	0.80%	36,140		14.388419		519,997	0.00%	15.22%
2004	0.80%	40,182		12.487641		501,778	0.00%	17.05%
2003	0.80%	53,805		10.668685		574,029	0.00%	46.48%
2002	0.80%	156,158		7.283277		1,137,342	0.00%	-34.68%
2001	0.80%	135,156		11.150533		1,507,061	0.00%	-29.21%
Credit Suisse Trust – International Focus Portfolio
2005	0.80%	320,444		14.183450		4,545,001	0.91%	16.51%
2004	0.80%	369,172		12.174019		4,494,307	0.99%	13.83%
2003	0.80%	431,745		10.695076		4,617,546	0.49%	32.03%
2002	0.80%	469,749		8.100409		3,805,159	0.00%	-20.54%
2001	0.80%	503,048		10.194751		5,128,449	0.00%	-22.90%
Credit Suisse Trust – Small Cap Growth Portfolio
2005	0.80%	443,896		18.193863		8,076,183	0.00%	-3.45%
2004	0.80%	539,886		18.844567		10,173,918	0.00%	9.99%
2003	0.80%	692,838		17.133573		11,870,790	0.00%	47.37%
2002	0.80%	739,837		11.626571		8,601,767	0.00%	-34.22%
2001	0.80%	816,970		17.675000		14,439,945	0.00%	-16.68%
Dreyfus IP – European Equity Portfolio
2001	0.80%	9,248		6.633319		61,345	0.84%	-28.71%
Dreyfus IP – Small Cap Stock Index Portfolio – Service Class
2005	0.80%	52,974		13.422021		711,018	0.00%	6.38%
2004	0.80%	70,472		12.616946		889,141	0.50%	20.91%
2003	0.80%	47,348		10.434661		494,060	0.33%	36.68%
2002	0.80%	5,194		7.634206		39,652	0.27%	-23.66%	05/01/02
Dreyfus Investor, Inc. – Dreyfus Stock Index Fund, Inc. – Initial Shares
2005	0.80%	1,502,104		29.461184		44,253,762	1.60%	3.86%
2004	0.80%	1,932,026		28.366357		54,804,539	1.80%	9.76%
2003	0.80%	2,290,356		25.844217		59,192,457	1.51%	27.34%
2002	0.80%	2,526,349		20.295193		51,272,741	1.31%	-22.98%
2001	0.80%	2,735,378		26.351146		72,080,345	1.06%	-12.88%

(Continued)

75

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Dreyfus Investor, Inc. – The Dreyfus Socially Responsible Growth Fund, Inc.
2005	0.80%	285,024	$	23.643910	$	6,739,082	0.00%	2.79%
2004	0.80%	333,044		23.001657		7,660,564	0.38%	5.36%
2003	0.80%	403,682		21.830604		8,812,622	0.11%	25.00%
2002	0.80%	432,657		17.464486		7,556,132	0.21%	-29.51%
2001	0.80%	479,262		24.776659		11,874,511	0.06%	-23.20%
Dreyfus VIF – Appreciation Portfolio – Initial Shares
2005	0.80%	211,690		13.866041		2,935,302	0.02%	3.55%
2004	0.80%	279,490		13.390880		3,742,617	1.63%	4.21%
2003	0.80%	338,655		12.850022		4,351,724	1.40%	20.20%
2002	0.80%	376,103		10.690124		4,020,588	1.14%	-17.38%
2001	0.80%	358,763		12.938645		4,641,907	0.84%	-10.04%
Dreyfus VIF – Developing Leaders Portfolio – Initial Shares
2005	0.80%	17,282		14.876684		257,099	0.00%	4.96%
2004	0.80%	22,806		14.173675		323,245	0.22%	10.45%
2003	0.80%	8,113		12.832258		104,108	0.08%	28.32%	05/01/03
Dreyfus VIF – Growth and Income Portfolio – Initial Shares
2005	0.80%	98,630		13.424762		1,324,084	1.34%	2.53%
2004	0.80%	117,298		13.093387		1,535,828	1.23%	6.61%
2003	0.80%	140,345		12.281397		1,723,633	0.84%	25.56%
2002	0.80%	152,335		9.781078		1,490,001	0.60%	-25.92%
2001	0.80%	162,195		13.204070		2,141,634	0.50%	-6.60%
Federated IS – American Leaders Fund II – Primary Shares
2005	0.80%	5,150		14.219360		73,230	1.33%	4.19%
2004	0.80%	5,782		13.647806		78,912	0.41%	8.90%
2003	0.80%	1,104		12.531875		13,835	0.00%	25.32%	05/01/03
Federated IS – Capital Appreciation Fund II – Primary Shares
2005	0.80%	606		12.913893		7,826	1.07%	1.10%
2004	0.80%	770		12.772814		9,835	0.28%	6.54%
2003	0.80%	553		11.988805		6,630	0.00%	19.89%	05/01/03
Federated IS – Quality Bond Fund II – Primary Shares
2005	0.80%	60,574		11.501519		696,693	3.65%	0.49%
2004	0.80%	73,162		11.445157		837,351	4.98%	2.79%
2003	0.80%	117,985		11.134037		1,313,649	3.93%	3.81%
2002	0.80%	101,228		10.725195		1,085,690	0.00%	7.25%	05/01/02
Fidelity® VIP – Equity-Income Portfolio: Initial Class
2005	0.80%	824,566		46.932598		38,699,025	1.64%	5.02%
2004	0.80%	1,112,750		44.687399		49,725,903	1.56%	10.64%
2003	0.80%	1,336,308		40.389521		53,972,840	1.80%	29.29%
2002	0.80%	1,471,599		31.238892		45,971,122	1.77%	-17.61%
2001	0.80%	1,558,719		37.915521		59,099,643	1.70%	-5.72%
Fidelity® VIP – Growth Portfolio: Initial Class
2005	0.80%	1,251,056		39.666280		49,624,738	0.51%	4.96%
2004	0.80%	1,643,610		37.792486		62,116,108	0.27%	2.55%
2003	0.80%	2,035,206		36.851094		74,999,568	0.27%	31.79%
2002	0.80%	2,235,794		27.961807		62,516,840	0.25%	-30.66%
2001	0.80%	2,474,278		40.327380		99,781,149	0.08%	-18.31%
Fidelity® VIP – High Income Portfolio: Initial Class
2005	0.80%	356,194		27.098684		9,652,389	16.14%	1.88%
2004	0.80%	565,686		26.597360		15,045,754	8.82%	8.72%
2003	0.80%	720,241		24.464133		17,620,072	5.94%	26.25%
2002	0.80%	765,595		19.377316		14,835,176	9.29%	2.62%
2001	0.80%	653,854		18.882734		12,346,551	13.67%	-12.44%
Fidelity® VIP – Overseas Portfolio: Initial Class
2005	0.80%	287,574		25.223510		7,253,626	0.71%	18.10%
2004	0.80%	498,640		21.357697		10,649,802	1.14%	12.73%
2003	0.80%	653,974		18.945840		12,390,087	0.83%	42.23%
2002	0.80%	722,432		13.320811		9,623,380	0.83%	-20.92%
2001	0.80%	814,381		16.843777		13,717,252	5.37%	-21.80%
Fidelity® VIP – Overseas Portfolio: Service Class R
2005	0.80%	84,208		12.433969		1,047,040	0.00%	24.34%	05/02/05

(Continued)

76

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Fidelity® VIP II – Asset Manager Portfolio: Initial Class
2005	0.80%	261,190	$	28.387536	$	7,414,541	2.76%	3.22%
2004	0.80%	416,912		27.502617		11,466,171	2.76%	4.63%
2003	0.80%	623,055		26.285930		16,377,580	3.62%	17.04%
2002	0.80%	753,208		22.459775		16,916,882	3.98%	-9.46%
2001	0.80%	808,651		24.805237		20,058,780	4.21%	-4.86%
Fidelity® VIP II – Contrafund® Portfolio: Initial Class
2005	0.80%	1,315,976		32.110552		42,256,716	0.29%	16.01%
2004	0.80%	1,547,972		27.679601		42,847,247	0.34%	14.56%
2003	0.80%	1,740,028		24.162368		42,043,197	0.46%	27.44%
2002	0.80%	1,875,068		18.959642		35,550,618	0.85%	-10.07%
2001	0.80%	2,013,717		21.083066		42,455,328	0.78%	-12.95%
Fidelity® VIP II – Investment Grade Bond Portfolio: Service Class
2005	0.80%	184,098		10.651144		1,960,854	1.67%	1.27%
2004	0.80%	47,726		10.517675		501,967	1.88%	3.49%
2003	0.80%	12,869		10.163210		130,790	0.00%	1.63%	05/01/03
Fidelity® VIP III – Growth Opportunities Portfolio: Initial Class
2005	0.80%	267,592		11.230531		3,005,200	0.95%	8.03%
2004	0.80%	304,964		10.396153		3,170,452	0.53%	6.34%
2003	0.80%	324,568		9.776597		3,173,171	0.74%	28.84%
2002	0.80%	328,074		7.588268		2,489,513	1.07%	-22.47%
2001	0.80%	341,765		9.787292		3,344,954	0.38%	-15.11%
Fidelity® VIP III – Mid Cap Portfolio: Service Class
2005	0.80%	247,064		20.335877		5,024,263	0.00%	17.26%
2004	0.80%	190,596		17.341823		3,305,282	0.00%	23.78%
2003	0.80%	40,642		14.010381		569,410	0.00%	40.10%	05/01/03
Fidelity® VIP III – Value Strategies Portfolio: Service Class
2005	0.80%	47,774		13.451310		642,623	0.00%	1.74%
2004	0.80%	79,260		13.221316		1,047,922	0.00%	13.08%
2003	0.80%	100,700		11.692079		1,177,392	0.00%	56.53%
2002	0.80%	10,466		7.469351		78,174	0.00%	-25.31%	05/01/02
Fidelity® VIP IV – Natural Resources Portfolio: Service Class 2
2005	0.80%	82,484		13.442988		1,108,831	0.65%	34.43%	05/02/05
Fidelity® VIP FF – Freedom Fund 2010 Portfolio: Service Class
2005	0.80%	2,332		10.748937		25,067	0.56%	7.49%	05/02/05
Fidelity® VIP FF – Freedom Fund 2020 Portfolio: Service Class
2005	0.80%	15,234		11.059893		168,486	0.86%	10.60%	05/02/05
Fidelity® VIP FF – Freedom Fund 2030 Portfolio: Service Class
2005	0.80%	3,818		11.269912		43,029	1.32%	12.70%	05/02/05
Franklin Templeton VIP – Franklin Rising Dividends Securities Fund – Class I
2005	0.80%	136,502		13.895780		1,896,802	1.09%	2.86%
2004	0.80%	110,404		13.509605		1,491,514	0.66%	10.36%
2003	0.80%	47,169		12.240997		577,396	0.20%	22.41%	05/01/03
Franklin Templeton VIP – Franklin Small Cap Value Securities Fund – Class I
2005	0.80%	114,196		17.684023		2,019,445	0.91%	8.12%
2004	0.80%	87,470		16.355679		1,430,631	0.19%	23.10%
2003	0.80%	8,003		13.286230		106,330	0.12%	32.86%	05/01/03
Franklin Templeton VIP – Templeton Foreign Securities Fund – Class I
2005	0.80%	46,522		17.058302		793,586	1.37%	9.60%
2004	0.80%	64,070		15.564386		997,210	1.10%	17.93%
2003	0.80%	22,318		13.198462		294,563	0.79%	31.98%	05/01/03
Franklin Templeton VIP III – Franklin Global Income Securities Fund – Class 3
2005	0.80%	2,864		9.828879		28,150	7.95%	-1.71%	05/02/05
Franklin Templeton VIP III – Templeton Developing Markets Securities Fund – Class 3
2005	0.80%	18,806		12.736654		239,526	0.53%	27.37%	05/02/05
Franklin Templeton VIP III – Templeton Foreign Securities Fund – Class 3
2005	0.80%	19,372		11.228867		217,526	0.39%	12.29%	05/02/05
Gartmore GVIT – Dreyfus International Value Fund – Class I
2005	0.80%	27,788		18.404112		511,413	1.34%	11.20%
2004	0.80%	64,536		16.550116		1,068,078	2.03%	19.33%
2003	0.80%	6,704		13.764414		92,277	0.00%	37.64%	05/01/03

(Continued)

77

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Gartmore GVIT – Dreyfus Mid Cap Index Fund – Class I
2005	0.80%	229,268	$	14.677115	$	3,364,993	1.03%	11.21%
2004	0.80%	324,610		13.197899		4,284,170	0.54%	14.81%
2003	0.80%	402,465		11.495433		4,626,509	0.49%	33.58%
2002	0.80%	332,165		8.605706		2,858,514	0.42%	-15.98%
2001	0.80%	246,977		10.242303		2,529,613	0.54%	-2.10%
Gartmore GVIT – Emerging Markets Fund: Class I
2005	0.80%	57,534		17.772777		1,022,539	0.61%	31.58%
2004	0.80%	84,992		13.506849		1,147,974	0.93%	19.78%
2003	0.80%	74,580		11.276219		840,980	0.66%	63.95%
2002	0.80%	29,904		6.877883		205,676	0.17%	-15.91%
2001	0.80%	23,612		8.178748		193,117	0.52%	-5.94%
Gartmore GVIT – Federated High Income Bond Fund: Class I
2005	0.80%	15,130		12.268656		185,625	6.81%	1.57%
2004	0.80%	29,550		12.079399		356,946	8.50%	9.22%
2003	0.80%	13,029		11.059766		144,098	9.25%	10.60%	05/01/03
Gartmore GVIT – Global Financial Services Fund: Class I
2005	0.80%	31,498		16.005171		504,131	2.00%	10.27%
2004	0.80%	23,526		14.514755		341,474	1.45%	20.03%
2003	0.80%	19,256		12.092670		232,856	0.88%	40.33%
2002	0.80%	3,345		8.617613		28,826	0.08%	-13.82%	05/01/02
Gartmore GVIT – Global Health Sciences Fund: Class I
2005	0.80%	24,756		12.948895		320,563	0.00%	7.58%
2004	0.80%	44,046		12.036757		530,171	0.00%	7.00%
2003	0.80%	22,955		11.249287		258,227	0.00%	35.61%
2002	0.80%	3,831		8.295539		31,780	0.00%	-17.04%	05/01/02
Gartmore GVIT – Global Technology and Communications Fund: Class I
2005	0.80%	124,346		3.046342		378,800	0.00%	-1.31%
2004	0.80%	219,234		3.086695		676,708	0.00%	3.48%
2003	0.80%	304,934		2.982846		909,571	0.00%	54.00%
2002	0.80%	113,725		1.936951		220,280	0.59%	-43.24%
2001	0.80%	86,686		3.412440		295,811	0.00%	-43.18%
Gartmore GVIT – Global Utilities Fund: Class I
2005	0.80%	52,446		14.464451		758,603	2.16%	5.54%
2004	0.80%	38,258		13.704848		524,320	1.92%	28.93%
2003	0.80%	6,211		10.629478		66,020	0.70%	23.06%
2002	0.80%	1,341		8.637451		11,583	0.54%	-13.63%	05/01/02
Gartmore GVIT – Government Bond Fund: Class I
2005	0.80%	225,488		24.326268		5,485,282	3.64%	2.44%
2004	0.80%	314,094		23.746180		7,458,533	5.48%	2.44%
2003	0.80%	448,119		23.180734		10,387,727	3.14%	1.19%
2002	0.80%	575,815		22.908666		13,191,154	4.42%	10.10%
2001	0.80%	492,674		20.807253		10,251,193	5.12%	6.40%
Gartmore GVIT – Growth Fund – Class I
2005	0.80%	720,822		17.967853		12,951,624	0.08%	5.65%
2004	0.80%	818,234		17.006258		13,915,099	0.33%	7.30%
2003	0.80%	936,407		15.849998		14,842,049	0.02%	31.68%
2002	0.80%	969,929		12.036520		11,674,570	0.00%	-29.29%
2001	0.80%	950,129		17.022307		16,173,388	0.00%	-28.71%
Gartmore GVIT – International Growth Fund: Class I
2005	0.80%	37,028		9.685731		358,643	1.03%	29.17%
2004	0.80%	16,036		7.498148		120,240	1.40%	13.28%
2003	0.80%	5,733		6.618892		37,946	0.00%	34.54%
2002	0.80%	7,532		4.919535		37,054	0.00%	-24.71%
2001	0.80%	8,456		6.534130		55,253	0.09%	-29.22%
Gartmore GVIT – Mid Cap Growth Fund: Class I
2005	0.80%	88,246		6.065031		535,215	0.00%	8.87%
2004	0.80%	97,936		5.570908		545,592	0.00%	14.42%
2003	0.80%	398,980		4.868865		1,942,580	0.00%	39.02%
2002	0.80%	250,537		3.502288		877,453	0.00%	-37.52%
2001	0.80%	146,210		5.605279		819,548	0.00%	-30.87%

(Continued)

78

NATIONWIDE VLI SEPARATE ACCOUNT-2 (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
2005	0.80%	727,730	$	15.286397	$	11,124,370	2.64%	1.85%
2004	0.80%	899,340		15.008890		13,498,095	0.78%	0.00%
2003	0.80%	1,224,466		15.008153		18,376,973	0.63%	-0.18%
2002	0.80%	1,963,625		15.035122		29,523,341	1.26%	0.40%
2001	0.80%	1,991,692		14.974957		29,825,502	3.57%	2.77%
Gartmore GVIT – Nationwide® Fund: Class I
2005	0.80%	1,522,010		35.868129		54,591,651	0.91%	6.59%
2004	0.80%	1,808,392		33.651239		60,854,631	1.28%	8.88%
2003	0.80%	2,115,628		30.907637		65,389,062	0.56%	26.50%
2002	0.80%	2,203,258		24.433418		53,833,124	0.85%	-18.01%
2001	0.80%	2,295,929		29.801440		68,421,990	0.74%	-12.53%
Gartmore GVIT – Nationwide® Leaders Fund: Class I
2005	0.80%	12,432		13.486728		167,667	1.54%	9.44%
2004	0.80%	3,724		12.323917		45,894	0.52%	17.85%
2003	0.80%	6,691		10.457551		69,971	0.19%	24.39%
2002	0.80%	12,664		8.407288		106,470	1.18%	-15.93%	05/01/02
Gartmore GVIT – Small Cap Growth Fund: Class I
2005	0.80%	96,746		7.596795		734,960	0.00%	7.23%
2004	0.80%	168,182		7.084474		1,191,481	0.00%	12.51%
2003	0.80%	191,617		6.296628		1,206,541	0.00%	33.20%
2002	0.80%	202,182		4.727311		955,777	0.00%	-33.82%
2001	0.80%	146,635		7.143137		1,047,434	0.00%	-11.55%
Gartmore GVIT – Small Cap Value Fund: Class I
2005	0.80%	287,838		20.382189		5,866,769	0.06%	2.25%
2004	0.80%	410,958		19.932939		8,191,601	0.00%	16.36%
2003	0.80%	566,915		17.129814		9,711,149	0.00%	55.61%
2002	0.80%	581,061		11.008455		6,396,584	0.01%	-27.74%
2001	0.80%	679,631		15.235359		10,354,422	0.03%	27.25%
Gartmore GVIT – Small Company Fund: Class I
2005	0.80%	568,428		35.000912		19,895,498	0.00%	11.42%
2004	0.80%	659,468		31.412204		20,715,343	0.00%	18.07%
2003	0.80%	812,594		26.603797		21,618,086	0.00%	39.89%
2002	0.80%	877,427		19.017572		16,686,531	0.00%	-17.99%
2001	0.80%	928,089		23.188796		21,521,266	0.10%	-7.45%
Gartmore GVIT – Turner Growth Focus Fund – Class I
2003	0.80%	103,819		3.251119		337,528	0.00%	49.76%
2002	0.80%	80,828		2.170866		175,467	0.00%	-43.31%
2001	0.80%	50,607		3.829622		193,806	0.00%	-39.52%
Gartmore GVIT – U.S. Growth Leaders Fund: Class I
2005	0.80%	30,714		15.296041		469,803	0.00%	11.07%
2004	0.80%	27,528		13.771155		379,092	0.00%	11.51%
2003	0.80%	55,080		12.349314		680,200	0.00%	50.93%
2002	0.80%	3,205		8.182356		26,224	0.00%	-18.18%	05/01/02
Gartmore GVIT – Van Kampen Multi Sector Bond Fund – Class I
2005	0.80%	44,454		13.670462		607,707	3.89%	1.37%
2004	0.80%	59,986		13.485955		808,968	4.85%	5.68%
2003	0.80%	67,316		12.760526		858,988	5.47%	11.22%
2002	0.80%	94,053		11.472904		1,079,061	4.53%	6.35%
2001	0.80%	55,247		10.787560		595,980	8.29%	3.35%
Gartmore GVIT – Van Kampen Value Fund – Class I
2005	0.80%	32,400		15.194781		492,311	1.69%	3.42%
2004	0.80%	29,708		14.692503		436,485	1.56%	16.56%
2003	0.80%	9,638		12.604789		121,485	1.52%	26.05%	05/01/03
Gartmore GVIT III – Dreyfus International Value Fund – Class III
2005	0.80%	35,798		11.391430		407,790	0.95%	13.91%	05/02/05
Gartmore GVIT III – Emerging Markets Fund: Class III
2005	0.80%	49,358		13.266490		654,807	0.19%	32.66%	05/02/05
Gartmore GVIT III – Federated High Income Bond Fund: Class III
2005	0.80%	8,904		10.485051		93,359	6.33%	4.85%	05/02/05

(Continued)

79

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Gartmore GVIT III – Global Health Sciences Fund: Class III
2005	0.80%	19,656	$	10.685265	$	210,030	0.00%	6.85%	05/02/05
Gartmore GVIT III – Global Technology and Communications Fund: Class III
2005	0.80%	10,504		12.252375		128,699	0.00%	22.52%	05/02/05
Gartmore GVIT ID II – Aggressive Fund – Class II
2005	0.80%	85,552		13.103041		1,120,991	1.95%	7.07%
2004	0.80%	57,102		12.237400		698,780	1.75%	13.12%
2003	0.80%	45,840		10.818285		495,910	1.41%	30.82%
2002	0.80%	17,710		8.269753		146,457	1.83%	-17.30%	01/25/02
Gartmore GVIT ID II – Conservative Fund – Class II
2005	0.80%	40,486		11.362140		460,008	2.78%	2.49%
2004	0.80%	44,818		11.086539		496,877	2.46%	3.82%
2003	0.80%	27,042		10.678769		288,775	2.37%	7.05%
2002	0.80%	21,249		9.975795		211,976	2.80%	-0.24%	01/25/02
Gartmore GVIT ID II – Moderate Fund – Class II
2005	0.80%	234,442		12.269879		2,876,575	2.36%	4.51%
2004	0.80%	230,378		11.740731		2,704,806	2.27%	8.66%
2003	0.80%	153,659		10.804715		1,660,242	2.06%	19.10%
2002	0.80%	44,700		9.072331		405,533	1.72%	-9.28%	01/25/02
Gartmore GVIT ID II – Moderately Aggressive Fund – Class II
2005	0.80%	281,378		12.796464		3,600,643	2.14%	6.22%
2004	0.80%	250,424		12.046998		3,016,857	1.97%	11.20%
2003	0.80%	180,393		10.833658		1,954,316	1.54%	25.64%
2002	0.80%	94,483		8.623105		814,737	1.55%	-13.77%	01/25/02
Gartmore GVIT ID II – Moderately Conservative Fund – Class II
2005	0.80%	88,944		11.895366		1,058,021	2.75%	3.66%
2004	0.80%	43,224		11.475860		496,033	2.48%	6.31%
2003	0.80%	40,296		10.795210		435,004	2.34%	12.79%
2002	0.80%	18,773		9.570814		179,673	2.35%	-4.29%	01/25/02
Janus AS – Balanced Portfolio – Service Shares
2005	0.80%	11,204		12.589281		141,050	2.56%	6.81%
2004	0.80%	6,582		11.787133		77,583	3.27%	7.43%
2003	0.80%	2,548		10.971897		27,956	4.49%	9.72%	05/01/03
Janus AS – Forty Portfolio – Service Shares
2005	0.80%	225,546		7.954734		1,794,158	0.01%	11.66%
2004	0.80%	271,392		7.123936		1,933,379	0.02%	17.03%
2003	0.80%	331,505		6.087370		2,017,994	0.25%	19.28%
2002	0.80%	358,288		5.103609		1,828,562	0.30%	-16.60%
2001	0.80%	350,620		6.119334		2,145,561	0.91%	-22.46%
Janus AS – Global Technology Portfolio – Service Shares
2005	0.80%	195,006		3.941403		768,597	0.00%	10.66%
2004	0.80%	234,210		3.561614		834,166	0.00%	-0.23%
2003	0.80%	262,295		3.569999		936,393	0.00%	45.31%
2002	0.80%	276,903		2.456849		680,309	0.00%	-41.40%
2001	0.80%	346,031		4.192814		1,450,844	0.56%	-37.82%
Janus AS – International Growth Portfolio – Service Shares
2005	0.80%	171,522		9.101228		1,561,061	1.14%	30.89%
2004	0.80%	166,012		6.953243		1,154,322	0.83%	17.74%
2003	0.80%	186,894		5.905539		1,103,710	0.99%	33.46%
2002	0.80%	219,129		4.424879		969,619	0.67%	-26.35%
2001	0.80%	227,552		6.008001		1,367,133	0.70%	-24.04%
Janus AS – Risk-Managed Large Cap Core Portfolio – Service Shares
2005	0.80%	11,304		15.689665		177,356	1.43%	10.03%
2004	0.80%	4,180		14.259340		59,604	2.29%	16.53%
2003	0.80%	649		12.236775		7,942	0.30%	22.37%	05/01/03
MFS® VITSM – MFS Investors Growth Stock Series – Initial Class
2005	0.80%	13,712		12.952455		177,604	0.38%	3.66%
2004	0.80%	15,444		12.495325		192,978	0.00%	8.32%
2003	0.80%	3,685		11.536092		42,510	0.00%	15.36%	05/01/03

(Continued)

80

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
MFS® VIT SM – MFS Value Series – Initial Class
2005	0.80%	12,536	$	14.873414	$	186,453	0.65%	5.81	%
2004	0.80%	9,316		14.056392		130,949	0.34%	14.26	%
2003	0.80%	3,296		12.301954		40,547	0.00%	23.02	%	05/01/03
Neuberger Berman AMT – International Portfolio – Class S
2005	0.80%	58,070		11.688169		678,732	0.22%	16.88	%	05/02/05
Neuberger Berman AMT – Regency Portfolio – Class S
2005	0.80%	2,398		11.600355		27,818	0.00%	16.00	%	05/02/05
Neuberger Berman AMT – Balanced Portfolio® – I Class Shares
2005	0.80%	1,268		24.981076		31,676	1.03%	8.31	%
2004	0.80%	1,898		23.063588		43,775	1.30%	8.44	%
2003	0.80%	3,028		21.268673		64,402	1.91%	15.35	%
2002	0.80%	2,497		18.438130		46,040	4.01%	-17.81	%
2001	0.80%	636		22.433930		14,268	0.00%	-3.34	%	06/15/01
Neuberger Berman AMT – Growth Portfolio® – I Class Shares
2005	0.80%	370,758		26.545874		9,842,095	0.00%	12.60	%
2004	0.80%	519,352		23.576070		12,244,279	0.00%	15.67	%
2003	0.80%	637,363		20.381526		12,990,431	0.00%	30.35	%
2002	0.80%	698,803		15.635481		10,926,121	0.00%	-31.71	%
2001	0.80%	800,152		22.896752		18,320,882	0.00%	-30.92	%
Neuberger Berman AMT – Guardian Portfolio – I Class Shares
2005	0.80%	88,548		12.265806		1,086,113	0.14%	7.53	%
2004	0.80%	121,580		11.406874		1,386,848	0.12%	14.89	%
2003	0.80%	143,460		9.928356		1,424,322	0.84%	30.71	%
2002	0.80%	161,292		7.595581		1,225,106	0.80%	-27.04	%
2001	0.80%	196,852		10.409898		2,049,209	0.47%	-2.30	%
Neuberger Berman AMT – Limited Maturity Bond Portfolio – I Class Shares
2005	0.80%	93,430		18.269985		1,706,965	2.61%	0.64	%
2004	0.80%	165,170		18.154314		2,998,548	3.64%	-0.02	%
2003	0.80%	195,325		18.158640		3,546,836	4.41%	1.61	%
2002	0.80%	225,668		17.871272		4,032,974	4.91%	4.50	%
2001	0.80%	178,198		17.101800		3,047,507	5.78%	7.91	%
Neuberger Berman AMT – Partners Portfolio® – I Class Shares
2005	0.80%	450,896		33.621038		15,159,592	1.02%	17.11	%
2004	0.80%	534,216		28.709463		15,337,054	0.01%	18.03	%
2003	0.80%	637,464		24.324378		15,505,915	0.00%	34.01	%
2002	0.80%	728,943		18.150798		13,230,897	0.53%	-24.75	%
2001	0.80%	777,174		24.119941		18,745,391	0.38%	-3.61	%
Neuberger Berman AMT – Socially Responsive Portfolio® – I Class Shares
2005	0.80%	7,910		14.663357		115,987	0.00%	6.01	%
2004	0.80%	18,504		13.832310		255,953	0.00%	12.38	%
2003	0.80%	3,251		12.308850		40,016	0.00%	23.09	%	05/01/03
Neuberger Berman AMT – Fasciano Portfolio – S Class Shares
2005	0.80%	1,526		14.207958		21,681	0.00%	2.08	%
2004	0.80%	3,644		13.918505		50,719	0.00%	10.99	%
2003	0.80%	854		12.540843		10,710	0.00%	25.41	%	05/01/03
Neuberger Berman AMT – Mid Cap Growth Portfolio® – S Class Shares
2005	0.80%	9,044		15.875842		143,581	0.00%	12.52	%
2004	0.80%	11,620		14.108984		163,946	0.00%	15.11	%
2003	0.80%	17,581		12.256991		215,490	0.00%	22.57	%	05/01/03
Oppenheimer Funds – Aggressive Growth Fund/VA – Initial Class
2005	0.80%	203,896		6.270767		1,278,584	0.00%	11.43	%
2004	0.80%	265,960		5.627305		1,496,638	0.00%	18.82	%
2003	0.80%	315,600		4.735882		1,494,644	0.00%	24.59	%
2002	0.80%	279,004		3.801151		1,060,536	0.65%	-28.37	%
2001	0.80%	298,688		5.306432		1,584,968	0.87%	-31.82	%
Oppenheimer Funds – Capital Appreciation Fund/VA – Initial Class
2005	0.80%	488,450		16.169181		7,897,836	0.93%	4.26	%
2004	0.80%	653,294		15.508004		10,131,286	0.33%	6.08	%
2003	0.80%	796,583		14.618573		11,644,907	0.38%	29.90	%
2002	0.80%	847,094		11.253616		9,532,871	0.64%	-27.44	%
2001	0.80%	859,711		15.509895		13,334,027	0.64%	-13.28	%

(Continued)

81

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Oppenheimer Funds – Global Securities Fund/VA – Initial Class
2005	0.80%	519,226	$	38.963173	$	20,230,692	1.07%	13.40%
2004	0.80%	723,504		34.359210		24,859,026	1.25%	18.21%
2003	0.80%	941,453		29.065271		27,363,587	0.76%	41.88%
2002	0.80%	1,001,953		20.485514		20,525,522	0.56%	-22.76%
2001	0.80%	1,078,042		26.520512		28,590,226	0.69%	-12.74%
Oppenheimer Funds – High Income Fund/VA – Initial Class
2005	0.80%	20,712		12.203356		252,756	6.75%	1.50%
2004	0.80%	30,734		12.022940		369,513	4.23%	8.10%
2003	0.80%	12,557		11.122220		139,662	0.00%	11.22%	05/01/03
Oppenheimer Funds – Main Street Fund®/VA – Initial Class
2005	0.80%	92,862		9.279543		861,717	1.25%	5.13%
2004	0.80%	97,760		8.826404		862,869	0.84%	8.59%
2003	0.80%	114,284		8.128407		928,947	0.90%	25.71%
2002	0.80%	111,681		6.466008		722,130	0.65%	-19.44%
2001	0.80%	73,856		8.026816		592,829	0.41%	-10.88%
Oppenheimer Funds – Main Street Small Cap Fund®/VA – Initial Class
2005	0.80%	28,068		17.822891		500,253	0.00%	9.05%
2004	0.80%	26,984		16.344185		441,031	0.00%	18.47%
2003	0.80%	26,396		13.796198		364,164	0.00%	37.96%	05/01/03
Oppenheimer Funds – Multiple Strategies Fund/VA – Initial Class
2005	0.80%	211,716		33.428671		7,077,385	1.76%	3.06%
2004	0.80%	325,990		32.435047		10,573,501	1.01%	9.22%
2003	0.80%	378,776		29.695890		11,248,090	2.82%	23.96%
2002	0.80%	393,230		23.955594		9,420,058	3.60%	-11.12%
2001	0.80%	394,571		26.951432		10,634,253	3.96%	1.40%
Oppenheimer Funds III – Global Securities Fund/VA – Class 3
2005	0.80%	156,170		11.995949		1,873,407	0.00%	19.96%	05/02/05
Oppenheimer VAF – Oppenheimer Bond Fund/VA – Initial Class
2005	0.80%	276,654		24.300441		6,722,814	5.34%	1.77%
2004	0.80%	337,846		23.877339		8,066,863	4.80%	4.65%
2003	0.80%	422,466		22.815950		9,638,963	5.67%	5.93%
2002	0.80%	492,395		21.538984		10,605,688	7.25%	8.21%
2001	0.80%	499,632		19.904727		9,945,039	7.04%	6.92%
Putnam VT IB – Growth & Income Fund – IB Shares
2005	0.80%	6,136		14.221232		87,261	1.56%	4.39%
2004	0.80%	3,926		13.622923		53,484	1.66%	10.23%
2003	0.80%	1,210		12.359054		14,954	0.00%	23.59%	05/01/03
Putnam VT IB – International Equity Fund – IB Shares
2005	0.80%	18,032		16.333628		294,528	1.11%	11.31%
2004	0.80%	8,052		14.674512		118,159	1.61%	15.27%
2003	0.80%	4,931		12.730633		62,775	0.00%	27.31%	05/01/03
Putnam VT IB – Voyager II Fund – IB Shares
2005	0.80%	2,700		12.881691		34,781	0.60%	4.85%
2004	0.80%	1,378		12.285483		16,929	0.19%	4.20%
2003	0.80%	1,238		11.790763		14,597	0.00%	17.91%	05/01/03
Strong VIF – Strong International Stock Fund II
2002	0.80%	199,430		5.696130		1,135,979	4.04%	-27.13%
2001	0.80%	213,256		7.816872		1,666,995	0.00%	-22.76%
T. Rowe Price II – Blue Chip Growth Portfolio – II
2005	0.80%	17,726		11.255124		199,508	0.29%	12.55%	05/02/05
T. Rowe Price II – Equity Income Portfolio – II
2005	0.80%	21,876		10.580627		231,462	1.20%	5.81%	05/02/05
T. Rowe Price II – Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio – Class II
2005	0.80%	2,888		10.073971		29,094	1.39%	0.74%	05/02/05
Van Eck WIT – Worldwide Bond Fund – Initial Class
2005	0.80%	64,726		19.633767		1,270,815	7.55%	-3.80%
2004	0.80%	94,458		20.409871		1,927,876	8.78%	8.28%
2003	0.80%	159,535		18.848928		3,007,064	1.75%	17.22%
2002	0.80%	198,934		16.079714		3,198,802	0.00%	20.69%
2001	0.80%	120,008		13.323421		1,598,917	4.39%	-5.86%

(Continued)

82

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Van Eck WIT – Worldwide Emerging Markets Fund – Initial Class
2005	0.80%	293,746	$	15.531958	$	4,562,451	0.73%	30.95%
2004	0.80%	322,338		11.861162		3,823,303	0.59%	24.89%
2003	0.80%	401,918		9.497431		3,817,188	0.11%	52.96%
2002	0.80%	444,801		6.209058		2,761,795	0.20%	-3.68%
2001	0.80%	444,368		6.445985		2,864,389	0.00%	-2.60%
Van Eck WIT – Worldwide Hard Assets Fund – Initial Class
2005	0.80%	119,090		36.954214		4,400,877	0.30%	50.47%
2004	0.80%	134,666		24.559747		3,307,363	0.37%	23.24%
2003	0.80%	173,612		19.968789		3,466,821	0.48%	43.92%
2002	0.80%	254,426		13.874598		3,530,058	0.68%	-3.61%
2001	0.80%	176,699		14.394010		2,543,407	1.21%	-11.16%
Van Kampen UIF – Core Plus Fixed Income Portfolio – Class I
2005	0.80%	22,076		10.895944		240,539	3.62%	3.39%
2004	0.80%	15,460		10.539104		162,935	4.78%	3.54%
2003	0.80%	2,958		10.179170		30,110	0.00%	1.79%	05/01/03
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I
2005	0.80%	68,904		18.085748		1,246,180	7.52%	11.36%
2004	0.80%	74,670		16.240956		1,212,712	6.41%	9.19%
2003	0.80%	113,201		14.874690		1,683,830	0.00%	26.85%
2002	0.80%	79,485		11.726545		932,084	6.91%	8.35%
2001	0.80%	74,719		10.822665		808,659	9.40%	9.22%
Van Kampen UIF – U.S. Real Estate Portfolio – Class I
2005	0.80%	267,504		44.496942		11,903,110	1.22%	16.12%
2004	0.80%	332,014		38.319214		12,722,516	1.55%	35.31%
2003	0.80%	336,013		28.319843		9,515,835	0.00%	36.42%
2002	0.80%	355,742		20.759770		7,385,122	3.29%	-1.58%
2001	0.80%	313,717		21.092541		6,617,089	3.98%	8.96%
Wells Fargo VTFSM – Wells Fargo Advantage Discovery Fund VT
2005	0.80%	130,268		32.224282		4,197,793	0.00%	7.41%
2004	0.80%	194,396		30.000581		5,831,993	0.00%	14.80%
2003	0.80%	240,474		26.133664		6,284,467	0.00%	38.32%
2002	0.80%	264,753		18.893884		5,002,212	0.00%	-12.72%
2001	0.80%	269,121		21.646818		5,825,613	0.72%	3.25%
Wells Fargo VTFSM – Wells Fargo Advantage Opportunity Fund VT
2005	0.80%	373,488		50.644296		18,915,037	0.00%	7.03%
2004	0.80%	515,136		47.318990		24,375,715	0.00%	17.28%
2003	0.80%	690,716		40.347502		27,868,665	0.07%	35.92%
2002	0.80%	826,619		29.685674		24,538,742	0.38%	-27.40%
2001	0.80%	901,762		40.890795		36,873,765	0.59%	-4.48%
American Century VP – Balanced Fund – Class I
2005	1.00%	52,040		10.882231		566,311	1.83%	3.89%
American Century VP – Capital Appreciation Fund – Class I
2005	1.00%	171,146		7.100441		1,215,212	0.00%	20.85%
American Century VP – Income & Growth Fund – Class I
2005	1.00%	20,504		9.965424		204,331	2.03%	3.59%
American Century VP – International Fund – Class I
2005	1.00%	61,088		8.214210		501,790	1.27%	12.13%
American Century VP – Ultra® Fund – Class I
2005	1.00%	5,288		10.943695		57,870	0.00%	1.15%
American Century VP – Value Fund – Class I
2005	1.00%	71,670		16.376728		1,173,720	0.88%	3.99%
Credit Suisse Trust – Global Small Cap Portfolio
2005	1.00%	3,714		6.496475		24,128	0.00%	14.99%
Credit Suisse Trust – International Focus Portfolio
2005	1.00%	15,960		9.513742		151,839	0.91%	16.27%
Credit Suisse Trust – Small Cap Growth Portfolio
2005	1.00%	41,474		7.185242		298,001	0.00%	-3.65%
Dreyfus IP – Small Cap Stock Index Portfolio – Service Class
2005	1.00%	15,334		13.324009		204,310	0.00%	6.17%

(Continued)

83

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Dreyfus Investor, Inc. – Dreyfus Stock Index Fund, Inc. – Initial Shares
2005	1.00%	344,792	$	8.862854	$	3,055,841	1.60%	3.65%
Dreyfus Investor, Inc. – The Dreyfus Socially Responsible Growth Fund, Inc.
2005	1.00%	20,360		6.322127		128,719	0.00%	2.59%
Dreyfus VIF – Appreciation Portfolio – Initial Shares
2005	1.00%	21,248		9.369677		199,087	0.02%	3.34%
Dreyfus VIF – Growth and Income Portfolio – Initial Shares
2005	1.00%	23,964		9.134532		218,900	1.34%	2.33%
Federated IS – Quality Bond Fund II – Primary Shares
2005	1.00%	4,004		11.417503		45,716	3.65%	0.29%
Fidelity® VIP – Equity-Income Portfolio: Initial Class
2005	1.00%	537,298		11.985917		6,440,009	1.64%	4.81%
Fidelity® VIP – Growth Portfolio: Initial Class
2005	1.00%	746,748		6.958097		5,195,945	0.51%	4.75%
Fidelity® VIP – High Income Portfolio: Initial Class
2005	1.00%	126,486		10.651851		1,347,310	16.14%	1.68%
Fidelity® VIP – Overseas Portfolio: Initial Class
2005	1.00%	162,770		10.624371		1,729,329	0.71%	17.87%
Fidelity® VIP II – Asset Manager Portfolio: Initial Class
2005	1.00%	287,746		10.339381		2,975,116	2.76%	3.01%
Fidelity® VIP II – Contrafund® Portfolio: Initial Class
2005	1.00%	210,686		12.233291		2,577,383	0.29%	15.78%
Fidelity® VIP III – Growth Opportunities Portfolio: Initial Class
2005	1.00%	11,798		8.554456		100,925	0.95%	7.81%
Fidelity® VIP III – Value Strategies Portfolio: Service Class
2005	1.00%	11,298		13.353090		150,863	0.00%	1.54%
Gartmore GVIT – Dreyfus Mid Cap Index Fund – Class I
2005	1.00%	43,640		13.226964		577,225	1.03%	10.99%
Gartmore GVIT – Emerging Markets Fund: Class I
2005	1.00%	19,494		17.324605		337,726	0.61%	31.32%
Gartmore GVIT – Global Financial Services Fund: Class I
2005	1.00%	5,612		15.888310		89,165	2.00%	10.05%
Gartmore GVIT – Global Health Sciences Fund: Class I
2005	1.00%	19,108		12.854278		245,620	0.00%	7.36%
Gartmore GVIT – Global Technology and Communications Fund: Class I
2005	1.00%	15,226		2.929673		44,607	0.00%	-1.50%
Gartmore GVIT – Global Utilities Fund: Class I
2005	1.00%	8,262		14.358831		118,633	2.16%	5.33%
Gartmore GVIT – Government Bond Fund: Class I
2005	1.00%	119,678		12.902408		1,544,134	3.64%	2.24%
Gartmore GVIT – Growth Fund – Class I
2005	1.00%	38,158		5.529847		211,008	0.08%	5.44%
Gartmore GVIT – International Growth Fund: Class I
2005	1.00%	24,308		9.635544		234,221	1.03%	28.92%
Gartmore GVIT – Mid Cap Growth Fund: Class I
2005	1.00%	24,834		5.609609		139,309	0.00%	8.65%
Gartmore GVIT – Money Market Fund – Class I
2005	1.00%	408,430		10.519895		4,296,641	2.64%	1.64%
Gartmore GVIT – Nationwide® Fund: Class I
2005	1.00%	153,820		9.791361		1,506,107	0.91%	6.38%
Gartmore GVIT – Nationwide® Leaders Fund: Class I
2005	1.00%	3,916		13.388228		52,428	1.54%	9.22%
Gartmore GVIT – Small Cap Growth Fund: Class I
2005	1.00%	9,740		7.520431		73,249	0.00%	7.02%
Gartmore GVIT – Small Cap Value Fund: Class I
2005	1.00%	105,618		16.297231		1,721,281	0.06%	2.05%
Gartmore GVIT – Small Company Fund: Class I
2005	1.00%	40,176		13.551021		544,426	0.00%	11.20%

(Continued)

84

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Gartmore GVIT – U.S. Growth Leaders Fund: Class I
2005	1.00%	13,390	$	15.184319	$	203,318	0.00%	10.85%
Gartmore GVIT – Van Kampen Multi Sector Bond Fund – Class I
2005	1.00%	2,210		13.245485		29,273	3.89%	1.17%
Gartmore GVIT ID II – Conservative Fund – Class II
2005	1.00%	2,858		11.273191		32,219	2.78%	2.28%
Gartmore GVIT ID II – Moderate Fund – Class II
2005	1.00%	36,840		12.173861		448,485	2.36%	4.30%
Gartmore GVIT ID II – Moderately Aggressive Fund – Class II
2005	1.00%	1,550		12.696312		19,679	2.14%	6.01%
Gartmore GVIT ID II – Moderately Conservative Fund – Class II
2005	1.00%	6,244		11.802269		73,693	2.75%	3.45%
Janus AS – Forty Portfolio – Service Shares
2005	1.00%	8,522		8.213276		69,994	0.01%	11.44%
Janus AS – Global Technology Portfolio – Service Shares
2005	1.00%	17,522		4.085406		71,584	0.00%	10.44%
Janus AS – International Growth Portfolio – Service Shares
2005	1.00%	35,600		9.896611		352,319	1.14%	30.63%
Neuberger Berman AMT – Growth Portfolio® – I Class Shares
2005	1.00%	189,716		5.658791		1,073,563	0.00%	12.37%
Neuberger Berman AMT – Guardian Portfolio – I Class Shares
2005	1.00%	2,788		10.858076		30,272	0.14%	7.32%
Neuberger Berman AMT – Limited Maturity Bond Portfolio – I Class Shares
2005	1.00%	47,674		11.659063		555,834	2.61%	0.44%
Neuberger Berman AMT – Partners Portfolio® – I Class Shares
2005	1.00%	78,466		13.343910		1,047,043	1.02%	16.87%
Oppenheimer Funds – Aggressive Growth Fund/VA – Initial Class
2005	1.00%	14,778		5.488955		81,116	0.00%	11.21%
Oppenheimer Funds – Capital Appreciation Fund/VA – Initial Class
2005	1.00%	112,070		8.184351		917,220	0.93%	4.06%
Oppenheimer Funds – Global Securities Fund/VA – Initial Class
2005	1.00%	136,196		12.217371		1,663,957	1.07%	13.17%
Oppenheimer Funds – Main Street Fund®/VA – Initial Class
2005	1.00%	16,864		9.169966		154,642	1.25%	4.92%
Oppenheimer Funds – Multiple Strategies Fund/VA – Initial Class
2005	1.00%	127,708		12.353496		1,577,640	1.76%	2.86%
Oppenheimer VAF – Oppenheimer Bond Fund/VA – Initial Class
2005	1.00%	32,080		13.172613		422,577	5.34%	1.57%
Van Eck WIT – Worldwide Bond Fund – Initial Class
2005	1.00%	44,648		14.409920		643,374	7.55%	-3.99%
Van Eck WIT – Worldwide Emerging Markets Fund – Initial Class
2005	1.00%	33,638		17.824242		599,572	0.73%	30.69%
Van Eck WIT – Worldwide Hard Assets Fund – Initial Class
2005	1.00%	66,950		23.079126		1,545,147	0.30%	50.17%
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I
2005	1.00%	8,002		18.206549		145,689	7.52%	11.14%
Van Kampen UIF – U.S. Real Estate Portfolio – Class I
2005	1.00%	63,520		23.286362		1,479,150	1.22%	15.89%
Wells Fargo VTFSM – Wells Fargo Advantage Discovery Fund VT
2005	1.00%	30,292		14.243955		431,478	0.00%	7.20%
Wells Fargo VTFSM – Wells Fargo Advantage Opportunity Fund VT
2005	1.00%	179,860		11.770963		2,117,125	0.00%	6.81%
Single Premium contracts issued on or after April 16, 1990
American Century VP – Balanced Fund – Class I
2005	1.30%	2,878		21.944037		63,155	1.83%	3.58%
2004	1.30%	35,358		21.184881		749,055	1.68%	8.36%
2003	1.30%	36,906		19.550372		721,526	2.53%	17.92%
2002	1.30%	36,064		16.579698		597,930	2.63%	-10.73%
2001	1.30%	27,610		18.571841		512,769	2.81%	-4.79%

(Continued)

85

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
American Century VP – Capital Appreciation Fund – Class I
2005	1.30%	6,016	$	21.895512	$	131,723	0.00%	20.49%
2004	1.30%	66,996		18.171733		1,217,433	0.00%	6.19%
2003	1.30%	85,342		17.111726		1,460,349	0.00%	18.92%
2002	1.30%	83,334		14.389339		1,199,121	0.00%	-22.22%
2001	1.30%	93,041		18.500029		1,721,261	0.00%	-29.00%
American Century VP – Income & Growth Fund – Class I
2005	1.30%	8,246		11.784027		97,171	2.03%	3.28%
2004	1.30%	31,276		11.409408		356,841	1.44%	11.53%
2003	1.30%	21,876		10.229575		223,782	1.30%	27.68%
2002	1.30%	18,481		8.011655		148,063	1.10%	-20.41%
2001	1.30%	40,468		10.066594		407,375	0.81%	-9.54%
American Century VP – International Fund – Class I
2005	1.30%	14,464		18.362361		265,593	1.27%	11.80%
2004	1.30%	55,662		16.424915		914,244	0.58%	13.44%
2003	1.30%	52,719		14.478934		763,315	0.75%	22.90%
2002	1.30%	67,411		11.780758		794,153	0.79%	-21.40%
2001	1.30%	105,515		14.988556		1,581,517	0.09%	-30.10%
American Century VP – Ultra® Fund – Class I
2004	1.30%	8,076		10.732849		86,678	0.00%	9.25%
2003	1.30%	1,710		9.824442		16,800	0.00%	23.29%
2002	1.30%	739		7.968770		5,889	0.46%	-20.31%	05/01/02
American Century VP – Value Fund – Class I
2005	1.30%	16,188		21.324425		345,200	0.88%	3.68%
2004	1.30%	92,778		20.567340		1,908,197	1.01%	12.86%
2003	1.30%	85,452		18.224277		1,557,301	1.09%	27.29%
2002	1.30%	94,957		14.316630		1,359,464	0.90%	-13.75%
2001	1.30%	123,905		16.598988		2,056,698	0.95%	11.36%
Credit Suisse Trust – Global Small Cap Portfolio
2005	1.30%	2,682		13.753775		36,888	0.00%	14.65%
2004	1.30%	4,110		11.996474		49,306	0.00%	16.47%
2003	1.30%	10,616		10.300420		109,349	0.00%	45.75%
2002	1.30%	5,188		7.067052		36,664	0.00%	-35.01%
2001	1.30%	7,002		10.873870		76,139	0.00%	-29.56%
Credit Suisse Trust – International Focus Portfolio
2005	1.30%	24,184		13.458367		325,477	0.91%	15.93%
2004	1.30%	41,378		11.609376		480,373	0.99%	13.26%
2003	1.30%	33,394		10.250133		342,293	0.49%	31.37%
2002	1.30%	49,680		7.802280		387,617	0.00%	-20.94%
2001	1.30%	55,979		9.868857		552,449	0.00%	-23.29%
Credit Suisse Trust – Small Cap Growth Portfolio
2005	1.30%	18,546		17.263500		320,169	0.00%	-3.93%
2004	1.30%	42,546		17.970297		764,564	0.00%	9.44%
2003	1.30%	49,309		16.420586		809,683	0.00%	46.63%
2002	1.30%	54,671		11.198504		612,233	0.00%	-34.55%
2001	1.30%	82,230		17.109846		1,406,943	0.00%	-17.10%
Dreyfus IP – European Equity Portfolio
2001	1.30%	2,993		6.578172		19,688	0.84%	-29.06%
Dreyfus IP – Small Cap Stock Index Portfolio – Service Class
2005	1.30%	5,586		13.178346		73,614	0.00%	5.85%
2004	1.30%	21,594		12.449758		268,840	0.50%	20.31%
2003	1.30%	14,581		10.347973		150,884	0.33%	36.00%
Dreyfus Investor, Inc. – Dreyfus Stock Index Fund, Inc. – Initial Shares
2005	1.30%	43,062		27.711836		1,193,327	1.60%	3.34%
2004	1.30%	166,174		26.815353		4,456,014	1.80%	9.21%
2003	1.30%	181,645		24.553549		4,460,029	1.51%	26.71%
2002	1.30%	179,477		19.378177		3,477,937	1.31%	-23.37%
2001	1.30%	215,776		25.286872		5,456,300	1.06%	-13.32%

(Continued)

86

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Dreyfus Investor, Inc. – The Dreyfus Socially Responsible Growth Fund, Inc.
2005	1.30%	1,602	$	22.241255	$	35,630	0.00%	2.28%
2004	1.30%	9,240		21.745234		200,926	0.38%	4.84%
2003	1.30%	11,971		20.741572		248,297	0.11%	24.38%
2002	1.30%	13,724		16.676328		228,866	0.21%	-29.86%
2001	1.30%	22,613		23.777410		537,679	0.06%	-23.58%
Dreyfus VIF – Appreciation Portfolio – Initial Shares
2005	1.30%	52,560		13.291662		698,610	0.02%	3.03%
2004	1.30%	69,410		12.900329		895,412	1.63%	3.69%
2003	1.30%	71,606		12.441321		890,873	1.40%	19.61%
2002	1.30%	74,627		10.401947		776,266	1.14%	-17.79%
2001	1.30%	80,268		12.653068		1,015,636	0.84%	-10.49%
Dreyfus VIF – Growth and Income Portfolio – Initial Shares
2005	1.30%	7,396		12.832801		94,911	1.34%	2.02%
2004	1.30%	20,464		12.578597		257,408	1.23%	6.08%
2003	1.30%	19,988		11.857652		237,011	0.84%	24.94%
2002	1.30%	13,957		9.490878		132,464	0.60%	-26.29%
2001	1.30%	12,109		12.876695		155,924	0.50%	-7.07%
Federated IS – Quality Bond Fund II – Primary Shares
2005	1.30%	296		11.292632		3,343	3.65%	-0.01%
2004	1.30%	5,244		11.293463		59,223	4.98%	2.28%
2003	1.30%	11,443		11.041537		126,348	3.93%	3.29%
2002	1.30%	4,830		10.689420		51,630	0.00%	6.89%	05/01/02
Fidelity® VIP – Equity-Income Portfolio: Initial Class
2005	1.30%	27,500		43.504590		1,196,376	1.64%	4.50%
2004	1.30%	197,270		41.630375		8,212,424	1.56%	10.09%
2003	1.30%	228,092		37.815050		8,625,310	1.80%	28.65%
2002	1.30%	242,191		29.394119		7,118,991	1.77%	-18.02%
2001	1.30%	292,636		35.855591		10,492,637	1.70%	-6.19%
Fidelity® VIP – Growth Portfolio: Initial Class
2005	1.30%	34,904		37.275932		1,301,079	0.51%	4.44%
2004	1.30%	195,692		35.692511		6,984,739	0.27%	2.04%
2003	1.30%	224,376		34.977889		7,848,199	0.27%	31.13%
2002	1.30%	239,109		26.673304		6,377,827	0.25%	-31.01%
2001	1.30%	283,815		38.662344		10,972,953	0.08%	-18.72%
Fidelity® VIP – High Income Portfolio: Initial Class
2005	1.30%	21,016		27.674631		581,610	16.14%	1.38%
2004	1.30%	106,760		27.298414		2,914,379	8.82%	8.18%
2003	1.30%	136,028		25.234771		3,432,635	5.94%	25.62%
2002	1.30%	160,671		20.087809		3,227,528	9.29%	2.11%
2001	1.30%	93,229		19.673202		1,834,113	13.67%	-12.88%
Fidelity® VIP – Overseas Portfolio: Initial Class
2005	1.30%	5,672		22.274316		126,340	0.71%	17.51%
2004	1.30%	95,424		18.954713		1,808,735	1.14%	12.17%
2003	1.30%	111,937		16.898456		1,891,562	0.83%	41.52%
2002	1.30%	129,046		11.940760		1,540,907	0.83%	-21.31%
2001	1.30%	150,144		15.174561		2,278,369	5.37%	-22.19%
Fidelity® VIP II – Asset Manager Portfolio: Initial Class
2005	1.30%	7,118		29.941319		213,122	2.76%	2.70%
2004	1.30%	121,996		29.152937		3,556,542	2.76%	4.11%
2003	1.30%	143,073		28.002882		4,006,456	3.62%	16.45%
2002	1.30%	165,830		24.046655		3,987,657	3.98%	-9.91%
2001	1.30%	187,390		26.691052		5,001,636	4.21%	-5.34%
Fidelity® VIP II – Contrafund® Portfolio: Initial Class
2005	1.30%	72,552		30.469674		2,210,636	0.29%	15.43%
2004	1.30%	167,594		26.396331		4,423,867	0.34%	13.99%
2003	1.30%	185,397		23.157613		4,293,352	0.46%	26.81%
2002	1.30%	199,804		18.262213		3,648,863	0.85%	-10.52%
2001	1.30%	215,185		20.409441		4,391,806	0.78%	-13.39%

(Continued)

87

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Fidelity® VIP III – Growth Opportunities Portfolio: Initial Class
2005	1.30%	844	$	10.765183	$	9,086	0.95%	7.49%
2004	1.30%	18,258		10.015165		182,857	0.53%	5.81%
2003	1.30%	18,158		9.465516		171,875	0.74%	28.20%
2002	1.30%	15,005		7.383595		110,791	1.07%	-22.86%
2001	1.30%	17,924		9.571123		171,553	0.38%	-15.53%
Fidelity® VIP III – Value Strategies Portfolio: Service Class
2005	1.30%	1,814		13.207092		23,958	0.00%	1.23%
2004	1.30%	23,932		13.046144		312,220	0.00%	12.52%
2003	1.30%	40,013		11.594984		463,950	0.00%	55.76%
2002	1.30%	1,517		7.444367		11,293	0.00%	-25.56%	05/01/02
Gartmore GVIT – Dreyfus Mid Cap Index Fund – Class I
2005	1.30%	15,760		14.267251		224,852	1.03%	10.66%
2004	1.30%	77,226		12.893433		995,708	0.54%	14.24%
2003	1.30%	76,418		11.286523		862,494	0.49%	32.91%
2002	1.30%	48,885		8.491590		415,111	0.42%	-16.40%
2001	1.30%	41,031		10.157238		416,762	0.54%	-2.59%
Gartmore GVIT – Emerging Markets Fund: Class I
2005	1.30%	2,774		17.312824		48,026	0.61%	30.93%
2004	1.30%	13,996		13.222981		185,069	0.93%	19.18%
2003	1.30%	31,749		11.094534		352,240	0.66%	63.13%
2002	1.30%	2,303		6.800904		15,662	0.17%	-16.33%
2001	1.30%	1,128		8.127810		9,168	0.52%	-6.42%
Gartmore GVIT – Global Financial Services Fund: Class I
2005	1.30%	238		15.714600		3,740	2.00%	9.72%
2004	1.30%	9,204		14.322458		131,824	1.45%	19.43%
2003	1.30%	8,059		11.992233		96,645	0.88%	39.63%
2002	1.30%	3,861		8.588804		33,161	0.08%	-14.11%	05/01/02
Gartmore GVIT – Global Health Sciences Fund: Class I
2005	1.30%	286		12.713706		3,636	0.00%	7.04%
2004	1.30%	21,374		11.877203		253,863	0.00%	6.47%
2003	1.30%	22,102		11.155813		246,566	0.00%	34.93%
2002	1.30%	13,221		8.267793		109,308	0.00%	-17.32%	05/01/02
Gartmore GVIT – Global Technology and Communications Fund: Class I
2005	1.30%	2,224		2.967380		6,599	0.00%	-1.80%
2004	1.30%	29,678		3.021716		89,678	0.00%	2.97%
2003	1.30%	49,780		2.934687		146,089	0.00%	53.23%
2002	1.30%	7,189		1.915215		13,768	0.59%	-43.52%
2001	1.30%	13,394		3.391119		45,421	0.00%	-43.47%
Gartmore GVIT – Global Utilities Fund: Class I
2005	1.30%	4,350		14.201823		61,778	2.16%	5.02%
2004	1.30%	21,056		13.523265		284,746	1.92%	28.29%
2003	1.30%	6,218		10.541163		65,545	0.70%	22.45%
2002	1.30%	2,573		8.608580		22,150	0.54%	-13.91%	05/01/02
Gartmore GVIT – Government Bond Fund: Class I
2005	1.30%	16,748		24.868713		416,501	3.64%	1.93%
2004	1.30%	87,934		24.397010		2,145,327	5.48%	1.93%
2003	1.30%	125,005		23.935432		2,992,049	3.14%	0.68%
2002	1.30%	222,251		23.773114		5,283,598	4.42%	9.55%
2001	1.30%	253,883		21.700608		5,509,415	5.12%	5.86%
Gartmore GVIT – Growth Fund – Class I
2005	1.30%	6,860		16.779162		115,105	0.08%	5.13%
2004	1.30%	20,390		15.960562		325,436	0.33%	6.76%
2003	1.30%	25,825		14.949958		386,083	0.02%	31.03%
2002	1.30%	29,222		11.409842		333,418	0.00%	-29.64%
2001	1.30%	37,694		16.217110		611,288	0.00%	-29.07%
Gartmore GVIT – International Growth Fund: Class I
2005	1.30%	3,512		9.434995		33,136	1.03%	28.53%
2004	1.30%	15,442		7.340515		113,352	1.40%	12.72%
2003	1.30%	4,222		6.512199		27,495	0.00%	33.87%
2002	1.30%	3,701		4.864470		18,003	0.00%	-25.09%

(Continued)

88

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Gartmore GVIT – Mid Cap Growth Fund: Class I
2004	1.30%	19,586	$	5.442251	$	106,592	0.00%	13.85%
2003	1.30%	54,348		4.780255		259,797	0.00%	38.33%
2002	1.30%	36,181		3.455755		125,033	0.00%	-37.83%
2001	1.30%	3,579		5.558609		19,894	0.00%	-31.22%
Gartmore GVIT – Money Market Fund – Class I
2005	1.30%	69,288		14.923119		1,033,993	2.64%	1.34%
2004	1.30%	380,556		14.726229		5,604,155	0.78%	-0.50%
2003	1.30%	388,834		14.800105		5,754,784	0.63%	-0.68%
2002	1.30%	594,197		14.901808		8,854,610	1.26%	-0.10%
2001	1.30%	788,057		14.917365		11,755,734	3.57%	2.25%
Gartmore GVIT – Nationwide® Fund: Class I
2005	1.30%	5,272		35.923101		189,387	0.91%	6.06%
2004	1.30%	50,156		33.871221		1,698,845	1.28%	8.33%
2003	1.30%	66,484		31.265566		2,078,660	0.56%	25.87%
2002	1.30%	72,057		24.840096		1,789,903	0.85%	-18.42%
2001	1.30%	91,363		30.449581		2,781,965	0.74%	-12.97%
Gartmore GVIT – Nationwide® Leaders Fund: Class I
2005	1.30%	1,590		13.241863		21,055	1.54%	8.89%
2004	1.30%	5,346		12.160621		65,011	0.52%	17.26%
2003	1.30%	3,455		10.370684		35,831	0.19%	23.77%
2002	1.30%	178		8.379188		1,491	1.18%	-16.21%	05/01/02
Gartmore GVIT – Small Cap Growth Fund: Class I
2005	1.30%	3,160		7.384553		23,335	0.00%	6.70%
2004	1.30%	27,028		6.920939		187,059	0.00%	11.95%
2003	1.30%	28,379		6.182099		175,442	0.00%	32.53%
2002	1.30%	23,644		4.664552		110,289	0.00%	-34.15%
2001	1.30%	10,664		7.083730		75,541	0.00%	-12.00%
Gartmore GVIT – Small Cap Value Fund: Class I
2005	1.30%	14,854		19.615792		291,373	0.06%	1.75%
2004	1.30%	109,740		19.279280		2,115,708	0.00%	15.78%
2003	1.30%	130,023		16.651092		2,165,025	0.00%	54.83%
2002	1.30%	95,522		10.754320		1,027,274	0.01%	-28.11%
2001	1.30%	193,975		14.958425		2,901,560	0.03%	26.61%
Gartmore GVIT – Small Company Fund: Class I
2005	1.30%	6,916		33.263194		230,048	0.00%	10.87%
2004	1.30%	27,688		30.001771		830,689	0.00%	17.49%
2003	1.30%	40,659		25.536562		1,038,291	0.00%	39.19%
2002	1.30%	38,599		18.345997		708,137	0.00%	-18.40%
2001	1.30%	42,033		22.482240		944,996	0.10%	-7.92%
Gartmore GVIT – Turner Growth Focus Fund – Class I
2003	1.30%	41,875		3.198637		133,943	0.00%	49.02%
2002	1.30%	9,832		2.146502		21,104	0.00%	-43.60%
2001	1.30%	2,633		3.805692		10,020	0.00%	-39.82%
Gartmore GVIT – U.S. Growth Leaders Fund: Class I
2005	1.30%	1,378		15.018298		20,695	0.00%	10.52%
2004	1.30%	11,128		13.588665		151,215	0.00%	10.96%
2003	1.30%	16,491		12.246750		201,961	0.00%	50.17%
2002	1.30%	4,697		8.154993		38,304	0.00%	-18.45%	05/01/02
Gartmore GVIT – Van Kampen Multi Sector Bond Fund – Class I
2005	1.30%	2,220		13.288789		29,501	3.89%	0.86%
2004	1.30%	8,078		13.174974		106,427	4.85%	5.16%
2003	1.30%	10,621		12.528743		133,068	5.47%	10.67%
2002	1.30%	10,843		11.320967		122,753	4.53%	5.82%
2001	1.30%	269		10.698042		2,878	8.29%	2.84%
Gartmore GVIT ID II – Conservative Fund – Class II
2004	1.30%	2,914		10.925221		31,836	2.46%	3.30%
2003	1.30%	2,945		10.576130		31,147	2.37%	6.51%

(Continued)

89

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Gartmore GVIT ID II – Moderate Fund – Class II
2005	1.30%	11,178	$	12.031239	$	134,485	2.36%	3.99%
2004	1.30%	35,746		11.569914		413,578	2.27%	8.12%
2003	1.30%	32,069		10.700865		343,166	2.06%	18.50%
2002	1.30%	265		9.030143		2,393	1.72%	-9.70%	01/25/02
Gartmore GVIT ID II – Moderately Aggressive Fund – Class II
2005	1.30%	22,262		12.547596		279,335	2.14%	5.69%
2004	1.30%	24,178		11.871734		287,035	1.97%	10.65%
Gartmore GVIT ID II – Moderately Conservative Fund – Class II
2005	1.30%	75,506		11.663995		880,702	2.75%	3.14%
2004	1.30%	78,358		11.308888		886,142	2.48%	5.78%
2003	1.30%	3,555		10.691448		38,008	2.34%	12.23%
2002	1.30%	99		9.526311		943	2.35%	-4.74%	01/25/02
Janus AS – Forty Portfolio – Service Shares
2005	1.30%	1,398		7.732522		10,810	0.01%	11.11%
2004	1.30%	10,144		6.959531		70,597	0.02%	16.44%
2003	1.30%	13,360		5.976684		79,848	0.25%	18.68%
2002	1.30%	10,536		5.035896		53,058	0.30%	-17.02%
2001	1.30%	15,561		6.068452		94,431	0.91%	-22.85%
Janus AS – Global Technology Portfolio – Service Shares
2004	1.30%	21,408		3.479325		74,485	0.00%	-0.73%
2003	1.30%	36,630		3.505015		128,389	0.00%	44.58%
2002	1.30%	22,402		2.424192		54,307	0.00%	-41.70%
2001	1.30%	44,468		4.157888		184,893	0.56%	-38.13%
Janus AS – International Growth Portfolio – Service Shares
2005	1.30%	5,076		8.846998		44,907	1.14%	30.24%
2004	1.30%	29,924		6.792762		203,267	0.83%	17.15%
2003	1.30%	53,588		5.798153		310,711	0.99%	32.80%
2002	1.30%	59,542		4.366167		259,970	0.67%	-26.72%
2001	1.30%	59,476		5.958051		354,361	0.70%	-24.43%
Neuberger Berman AMT – Growth Portfolio® – I Class Shares
2005	1.30%	8,346		25.728636		214,731	0.00%	12.04%
2004	1.30%	58,460		22.964403		1,342,499	0.00%	15.10%
2003	1.30%	67,899		19.952228		1,354,736	0.00%	29.71%
2002	1.30%	70,474		15.382754		1,084,084	0.00%	-32.05%
2001	1.30%	116,532		22.639891		2,638,272	0.00%	-31.27%
Neuberger Berman AMT – Guardian Portfolio – I Class Shares
2004	1.30%	4,968		11.032769		54,811	0.12%	14.32%
2003	1.30%	6,729		9.650858		64,941	0.84%	30.06%
2002	1.30%	6,891		7.420249		51,133	0.80%	-27.40%
2001	1.30%	7,490		10.220670		76,553	0.47%	-2.79%
Neuberger Berman AMT – Limited Maturity Bond Portfolio – I Class Shares
2005	1.30%	3,662		18.158987		66,498	2.61%	0.14%
2004	1.30%	43,950		18.134220		796,999	3.64%	-0.52%
2003	1.30%	68,214		18.229469		1,243,505	4.41%	1.10%
2002	1.30%	82,238		18.030897		1,482,825	4.91%	3.98%
2001	1.30%	64,208		17.341018		1,113,432	5.78%	7.37%
Neuberger Berman AMT – Partners Portfolio® – I Class Shares
2005	1.30%	22,258		31.756491		706,836	1.02%	16.53%
2004	1.30%	35,560		27.252721		969,107	0.01%	17.44%
2003	1.30%	38,219		23.205843		886,904	0.00%	33.35%
2002	1.30%	42,685		17.402827		742,840	0.53%	-25.12%
2001	1.30%	58,929		23.242157		1,369,637	0.38%	-4.09%
Oppenheimer Funds – Aggressive Growth Fund/VA – Initial Class
2005	1.30%	10,562		6.095550		64,381	0.00%	10.88%
2004	1.30%	38,774		5.497394		213,156	0.00%	18.23%
2003	1.30%	27,365		4.649735		127,240	0.00%	23.97%
2002	1.30%	11,830		3.750690		44,371	0.65%	-28.72%
2001	1.30%	12,032		5.262277		63,316	0.87%	-32.16%

(Continued)

90

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Oppenheimer Funds – Capital Appreciation Fund/VA – Initial Class
2005	1.30%	10,204	$	15.499156	$	158,153	0.93%	3.75%
2004	1.30%	74,904		14.939657		1,119,040	0.33%	5.56%
2003	1.30%	87,490		14.153408		1,238,282	0.38%	29.25%
2002	1.30%	84,080		10.950071		920,682	0.64%	-27.81%
2001	1.30%	89,005		15.167382		1,349,973	0.64%	-13.71%
Oppenheimer Funds – Global Securities Fund/VA – Initial Class
2005	1.30%	20,412		36.649419		748,088	1.07%	12.84%
2004	1.30%	74,314		32.480314		2,413,742	1.25%	17.62%
2003	1.30%	72,050		27.613518		1,989,554	0.76%	41.18%
2002	1.30%	77,714		19.559687		1,520,062	0.56%	-23.14%
2001	1.30%	89,126		25.449092		2,268,176	0.69%	-13.18%
Oppenheimer Funds – Main Street Fund®/VA – Initial Class
2005	1.30%	2,664		9.020429		24,030	1.25%	4.61%
2004	1.30%	25,380		8.622799		218,847	0.84%	8.05%
2003	1.30%	16,358		7.980692		130,548	0.90%	25.08%
2002	1.30%	8,466		6.380282		54,015	0.65%	-19.85%
2001	1.30%	11,244		7.960162		89,504	0.41%	-11.33%
Oppenheimer Funds – Multiple Strategies Fund/VA – Initial Class
2005	1.30%	8,748		32.399586		283,432	1.76%	2.55%
2004	1.30%	59,420		31.593672		1,877,296	1.01%	8.68%
2003	1.30%	66,415		29.070523		1,930,719	2.82%	23.34%
2002	1.30%	58,166		23.568558		1,370,889	3.60%	-11.56%
2001	1.30%	95,325		26.649037		2,540,319	3.96%	0.89%
Oppenheimer VAF – Oppenheimer Bond Fund/VA – Initial Class
2005	1.30%	8,382		24.474528		205,145	5.34%	1.27%
2004	1.30%	31,218		24.168614		754,496	4.80%	4.13%
2003	1.30%	39,108		23.210049		907,699	5.67%	5.40%
2002	1.30%	66,289		22.020858		1,459,741	7.25%	7.67%
2001	1.30%	71,479		20.452013		1,461,889	7.04%	6.39%
Strong VIF – Strong International Stock Fund II
2002	1.30%	28,207		5.494908		154,995	4.04%	-27.49%
2001	1.30%	28,858		7.578594		218,703	0.00%	-23.15%
Van Eck WIT – Worldwide Bond Fund – Initial Class
2005	1.30%	1,402		19.968392		27,996	7.55%	-4.28%
2004	1.30%	41,310		20.861514		861,789	8.78%	7.74%
2003	1.30%	45,248		19.362563		876,117	1.75%	16.64%
2002	1.30%	48,544		16.600653		805,862	0.00%	20.09%
2001	1.30%	33,122		13.823940		457,877	4.39%	-6.33%
Van Eck WIT – Worldwide Emerging Markets Fund – Initial Class
2005	1.30%	9,088		14.846881		134,928	0.73%	30.30%
2004	1.30%	55,514		11.394604		632,560	0.59%	24.27%
2003	1.30%	41,241		9.169570		378,162	0.11%	52.20%
2002	1.30%	32,199		6.024691		193,989	0.20%	-4.16%
2001	1.30%	34,168		6.285993		214,780	0.00%	-3.09%
Van Eck WIT – Worldwide Hard Assets Fund – Initial Class
2005	1.30%	11,812		32.040853		378,467	0.30%	49.72%
2004	1.30%	60,654		21.400584		1,298,031	0.37%	22.63%
2003	1.30%	52,868		17.487326		924,520	0.48%	43.21%
2002	1.30%	42,486		12.211274		518,808	0.68%	-4.09%
2001	1.30%	38,241		12.731937		486,882	1.21%	-11.61%
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I
2005	1.30%	374		17.336446		6,484	7.52%	10.81%
2004	1.30%	12,540		15.645892		196,199	6.41%	8.64%
2003	1.30%	28,152		14.401515		405,431	0.00%	26.21%
2002	1.30%	5,151		11.410385		58,775	6.91%	7.81%
2001	1.30%	7,324		10.583651		77,515	9.40%	8.67%

(Continued)

91

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Van Kampen UIF – U.S. Real Estate Portfolio – Class I
2005	1.30%	7,386	$	42.223333	$	311,862	1.22%	15.54%
2004	1.30%	39,270		36.542922		1,435,041	1.55%	34.63%
2003	1.30%	45,256		27.142344		1,228,354	0.00%	35.74%
2002	1.30%	51,170		19.996209		1,023,206	3.29%	-2.07%
2001	1.30%	53,253		20.418602		1,087,352	3.98%	8.41%
Wells Fargo VTFSM – Wells Fargo Advantage Discovery Fund VT
2005	1.30%	2,946		30.095203		88,660	0.00%	6.88%
2004	1.30%	20,844		28.158423		586,934	0.00%	14.22%
2003	1.30%	22,400		24.651908		552,203	0.00%	37.63%
2002	1.30%	26,664		17.911803		477,600	0.00%	-13.15%
2001	1.30%	35,961		20.624646		741,683	0.72%	2.73%
Wells Fargo VTFSM – Wells Fargo Advantage Opportunity Fund VT
2005	1.30%	6,228		47.299447		294,581	0.00%	6.50%
2004	1.30%	58,418		44.414552		2,594,609	0.00%	16.69%
2003	1.30%	69,041		38.060714		2,627,750	0.07%	35.24%
2002	1.30%	78,959		28.143339		2,222,170	0.38%	-27.77%
2001	1.30%	99,955		38.960989		3,894,346	0.59%	-4.95%
2005					$	929,399,760
2004					$	915,627,476
2003					$	881,562,186
2002					$	727,023,336
2001					$	933,404,977

*	This represents the annual contract expense rate of the variable account for the period indicated and includes only those expenses that are assessed 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, if any, 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.

92

Report of Independent Registered Public Accounting Firm

The Board of Directors of Nationwide Life Insurance Company and

    Contract Owners of Nationwide VLI Separate Account-2:

We have audited the accompanying statement of assets, liabilities and contract owners’ equity of Nationwide VLI Separate Account-2 (comprised of the sub-accounts listed in note 1(b)) (collectively, “the Account”) as of December 31, 2005, and the related statements of operations and changes in contract owners’ equity, and the financial highlights for each of the periods indicated herein. These financial statements and financial highlights are the responsibility of the Account’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

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

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

KPMG LLP

Columbus, Ohio

March 8, 2006

93

NATIONWIDE LIFE INSURANCE COMPANY	PRSRT STD
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