Nationwide^® VLI

Separate Account-2

December 31, 2006

2006    

Annual Report    

Nationwide Life Insurance Company

Home Office: Columbus, Ohio

VLOB–12–12/06

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2006

Assets:
Investments at fair value:
AIM Variable Insurance Funds – AIM V.I. Basic Value Fund – Series I (AIMBValue) 99,108 shares (cost $1,219,268)	$	1,324,084
AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund – Series I (AIMCapAp) 2,599 shares (cost $66,911)		68,147
AIM Variable Insurance Funds – AIM V.I. Capital Development Fund – Series I Shares (AIMCapDev) 21,523 shares (cost $365,095)		396,663
AllianceBernstein Variable Products Series Fund, Inc. – Growth and Income Portfolio – Class A (AlVPGrIncA) 39,088 shares (cost $945,039)		1,062,792
AllianceBernstein Variable Products Series Fund, Inc. – Small-Mid Cap Value Portfolio – Class A (AlVPSmMdCpA) 67,661 shares (cost $1,101,802)		1,223,308
American Century Variable Portfolios, Inc. – Balanced Fund – Class I (ACVPBal) 666,538 shares (cost $4,258,083)		5,019,033
American Century Variable Portfolios, Inc. – Capital Appreciation Fund – Class I (ACVPCapAp) 1,316,687 shares (cost $10,205,076)		14,430,891
American Century Variable Portfolios, Inc. – Income & Growth Fund – Class I (ACVPIncGr) 431,476 shares (cost $2,691,752)		3,723,641
American Century Variable Portfolios, Inc. – Inflation Protection Fund – Class II (ACVPInfPro2) 85,676 shares (cost $889,641)		863,616
American Century Variable Portfolios, Inc. – International Fund – Class I (ACVPInt) 1,008,588 shares (cost $6,005,764)		10,206,914
American Century Variable Portfolios, Inc. – International Fund – Class III (ACVPInt3) 218,008 shares (cost $1,910,469)		2,206,244
American Century Variable Portfolios, Inc. – Mid Cap Value Fund – Class I (ACVPMdCpV) 49,938 shares (cost $663,299)		673,667
American Century Variable Portfolios, Inc. – Ultra® Fund – Class I (ACVPUltra) 53,665 shares (cost $542,117)		538,799
American Century Variable Portfolios, Inc. – Value Fund – Class I (ACVPVal) 1,678,985 shares (cost $12,814,521)		14,674,330
American Century Variable Portfolios, Inc. – VistaSM Fund – Class I (ACVPVista) 2,602 shares (cost $39,863)		40,960
Credit Suisse Trust – Global Small Cap Portfolio (CSTGlSmCp) 63,972 shares (cost $791,226)		937,831
Credit Suisse Trust – International Focus Portfolio (CSTIntFoc) 555,598 shares (cost $5,120,406)		7,633,917
Credit Suisse Trust – Small Cap Growth Portfolio (CSTSmCapGr) 728,392 shares (cost $8,700,087)		11,362,920
Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio – Service Shares (DryIPSmCap) 115,534 shares (cost $1,864,006)		2,147,771
Dreyfus Socially Responsible Growth Fund, Inc. – Initial Shares, The (DrySRGro) 304,269 shares (cost $9,774,597)		8,656,446
Dreyfus Stock Index Fund, Inc. – Initial Shares (DryStkIx) 2,112,146 shares (cost $63,900,585)		76,354,090
Dreyfus Variable Investment Fund – Appreciation Portfolio – Initial Shares (DryVIApp) 144,152 shares (cost $4,808,595)		6,133,683

(Continued)

2

NATIONWIDE VLI SEPARATE ACCOUNT-2

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

Dreyfus Variable Investment Fund – Developing Leaders Portfolio – Initial Shares (DryVIFDevLd) 8,873 shares (cost $364,235)	$	372,946
Dreyfus Variable Investment Fund – Growth and Income Portfolio – Initial Shares (DryVIFGrInc) 93,352 shares (cost $1,789,634)		2,314,188
Federated Insurance Series – Federated American Leaders Fund II – Primary Shares (FedAmLead) 9,409 shares (cost $183,178)		202,765
Federated Insurance Series – Federated Capital Appreciation Fund II – Primary Shares (FedCapAp) 1,396 shares (cost $8,375)		9,462
Federated Insurance Series – Federated Quality Bond Fund II – Primary Shares (FedQualBd) 120,509 shares (cost $1,356,053)		1,360,552
Fidelity® Variable Insurance Products Fund – Equity-Income Portfolio – Initial Class (FidVIPEI) 3,029,296 shares (cost $69,983,059)		79,367,560
Fidelity® Variable Insurance Products Fund – Growth Portfolio – Initial Class (FidVIPGr) 2,196,186 shares (cost $95,192,474)		78,777,184
Fidelity® Variable Insurance Products Fund – High Income Portfolio – Initial Class (FidVIPHI) 3,142,892 shares (cost $20,336,216)		19,957,367
Fidelity® Variable Insurance Products Fund – Overseas Portfolio – Initial Class (FidVIPOv) 721,060 shares (cost $9,200,409)		17,283,816
Fidelity® Variable Insurance Products Fund – Overseas Portfolio – Service Class R (FidVIPOvSR) 216,467 shares (cost $4,428,554)		5,158,415
Fidelity® Variable Insurance Products Fund II – Asset Manager Portfolio – Initial Class (FidVIPAM) 1,291,367 shares (cost $19,627,784)		20,287,377
Fidelity® Variable Insurance Products Fund II – Contrafund® Portfolio – Initial Class (FidVIPCon) 2,252,980 shares (cost $56,211,316)		70,901,272
Fidelity® Variable Insurance Products Fund II – Investment Grade Bond Portfolio – Service Class (FidVIPIGBdS) 266,583 shares (cost $3,316,867)		3,380,269
Fidelity® Variable Insurance Products Fund III – Growth Opportunities Portfolio – Initial Class (FidVIPGrOp) 218,126 shares (cost $3,184,661)		3,961,161
Fidelity® Variable Insurance Products Fund III – Mid Cap Portfolio – Service Class (FidVIPMCapS) 274,034 shares (cost $8,671,117)		9,478,821
Fidelity® Variable Insurance Products Fund III – Value Strategies Portfolio – Service Class (FidVIPVaIS) 124,032 shares (cost $1,521,159)		1,664,511
Fidelity® Variable Insurance Products Fund IV – Energy Portfolio – Service Class 2 (FidVIPEnergyS2) 209,627 shares (cost $4,275,001)		3,978,714
Fidelity® Variable Insurance Products Fund IV – Freedom Fund 2010 Portfolio – Service Class (FidVIPFree10S) 20,103 shares (cost $227,510)		232,791
Fidelity® Variable Insurance Products Fund IV – Freedom Fund 2020 Portfolio – Service Class (FidVIPFree20S) 29,840 shares (cost $323,526)		360,766
Fidelity® Variable Insurance Products Fund IV – Freedom Fund 2030 Portfolio – Service Class (FidVIPFree30S) 29,379 shares (cost $361,876)		365,473
Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Fund – Class 2 (FrVIPIncSec2) 18,885 shares (cost $312,460)		327,848
Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund – Class 1 (FrVIPRisDiv) 214,186 shares (cost $3,820,625)		4,472,194
Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund – Class 1 (FrVIPSmCapV1) 182,003 shares (cost $3,079,449)		3,470,797

(Continued)

3

NATIONWIDE VLI SEPARATE ACCOUNT-2

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

Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund – Class 3 (FrVIPDevMrk3) 120,657 shares (cost $1,432,961)	$	1,662,655
Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund – Class 1 (FrVIPForSec) 59,150 shares (cost $833,264)		1,123,267
Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund – Class 3 (FrVIPForSec3) 86,107 shares (cost $1,417,009)		1,608,483
Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund – Class 3 (FrVIPGlInc3) 24,857 shares (cost $373,789)		385,034
Gartmore GVIT – American Funds GVIT Asset Allocation Fund – Class II (GVITAstAll2) 20,169 shares (cost $367,271)		374,744
Gartmore GVIT – American Funds GVIT Bond Fund – Class II (GVITBnd2) 30,594 shares (cost $348,295)		358,558
Gartmore GVIT – American Funds GVIT Global Growth Fund – Class II (GVITGlobGr2) 38,134 shares (cost $859,303)		890,434
Gartmore GVIT – American Funds GVIT Growth Fund – Class II (GVITGrowth2) 9,974 shares (cost $622,171)		646,542
Gartmore GVIT – Dreyfus GGVIT International Value Fund – Class I (GVITIntValI) 47,128 shares (cost $728,557)		875,634
Gartmore GVIT – Dreyfus GGVIT International Value Fund – Class III (GVITIntVal3) 115,685 shares (cost $1,953,752)		2,143,644
Gartmore GVIT – Emerging Markets Fund – Class I (GVITEmMrkts) 132,246 shares (cost $1,651,291)		2,316,941
Gartmore GVIT – Emerging Markets Fund – Class III (GVITEmMrkts3) 161,904 shares (cost $2,378,653)		2,834,944
Gartmore GVIT – Federated GGVIT High Income Bond Fund – Class I (GVITFHiInc) 32,202 shares (cost $254,153)		256,973
Gartmore GVIT – Federated GGVIT High Income Bond Fund – Class III (GVITFHiInc3) 38,437 shares (cost $302,775)		306,344
Gartmore GVIT – Global Financial Services Fund – Class I (GVITGlFin) 68,262 shares (cost $893,140)		904,475
Gartmore GVIT – Global Health Sciences Fund – Class I (GVITGlHlth) 41,464 shares (cost $442,577)		440,345
Gartmore GVIT – Global Health Sciences Fund – Class III (GVITGlHlth3) 38,428 shares (cost $408,070)		408,875
Gartmore GVIT – Global Technology and Communications Fund – Class I (GVITGlTech) 115,421 shares (cost $409,544)		494,001
Gartmore GVIT – Global Technology and Communications Fund – Class III (GVITGlTech3) 64,834 shares (cost $257,290)		279,436
Gartmore GVIT – Global Utilities Fund – Class I (GVITGlUtl) 193,166 shares (cost $2,245,855)		2,478,320
Gartmore GVIT – Government Bond Fund – Class I (GVITGvtBd) 977,237 shares (cost $11,659,729)		11,091,645
Gartmore GVIT – Growth Fund: Class I (GVITGrowth) 1,347,382 shares (cost $18,710,707)		16,370,687
Gartmore GVIT – International Growth Fund – Class I (GVITIntGro) 180,044 shares (cost $1,859,653)		2,173,125

(Continued)

4

NATIONWIDE VLI SEPARATE ACCOUNT-2

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

Gartmore GVIT – International Index Fund – Class VI (GVITIntIdx6) 1,596 shares (cost $14,954)	$	17,252
Gartmore GVIT – Investor Destinations Aggressive Fund – Class II (GVITIDAgg2) 214,095 shares (cost $2,601,515)		2,892,419
Gartmore GVIT – Investor Destinations Conservative Fund – Class II (GVITIDCon2) 42,425 shares (cost $439,367)		444,189
Gartmore GVIT – Investor Destinations Moderate Fund – Class II (GVITIDMod2) 642,072 shares (cost $7,192,815)		7,884,646
Gartmore GVIT – Investor Destinations Moderately Aggressive Fund – Class II (GVITIDModAg2) 526,585 shares (cost $6,032,536)		6,898,268
Gartmore GVIT – Investor Destinations Moderately Conservative Fund – Class II (GVITIDModCon2) 235,699 shares (cost $2,528,591)		2,675,183
Gartmore GVIT – Mid Cap Growth Fund – Class I (GVITMdCpGr) 48,836 shares (cost $1,197,359)		1,457,265
Gartmore GVIT – Mid Cap Index Fund – Class I (GVITMdCpIdx) 387,869 shares (cost $6,075,273)		7,210,476
Gartmore GVIT – Money Market Fund – Class I (GVITMyMkt) 28,462,809 shares (cost $28,462,809)		28,462,809
Gartmore GVIT – Nationwide® Fund – Class I (GVITNWFund) 5,838,352 shares (cost $79,401,527)		77,766,847
Gartmore GVIT – Nationwide® Leaders Fund – Class I (GVITNWLead) 37,941 shares (cost $507,340)		521,314
Gartmore GVIT – Small Cap Growth Fund – Class I (GVITSmCapGr) 86,083 shares (cost $1,430,922)		1,412,625
Gartmore GVIT – Small Cap Value Fund – Class I (GVITSmCapVal) 966,319 shares (cost $11,854,028)		12,030,666
Gartmore GVIT – Small Company Fund – Class I (GVITSmComp) 1,208,785 shares (cost $24,849,856)		30,207,540
Gartmore GVIT – U.S. Growth Leaders Fund – Class I (GVITUSGro) 73,425 shares (cost $825,968)		773,904
Gartmore GVIT – Van Kampen GGVIT Comstock Value Fund: Class I (GVITVKVal) 81,740 shares (cost $948,781)		1,025,020
Gartmore GVIT – Van Kampen GVIT Multi-Sector Bond Fund – Class I (GVITMltSec) 149,650 shares (cost $1,481,493)		1,468,070
Janus Aspen Series – Balanced Portfolio – Service Shares (JanBal) 9,434 shares (cost $239,043)		271,969
Janus Aspen Series – Forty Portfolio – Service Shares (JanForty) 83,159 shares (cost $1,979,510)		2,487,290
Janus Aspen Series – Global Technology Portfolio – Service Shares (JanGlTech) 251,210 shares (cost $897,864)		1,072,667
Janus Aspen Series – INTECH Risk-Managed Core Portfolio – Service Shares (JanRMgCore) 15,565 shares (cost $197,588)		197,670
Janus Aspen Series – International Growth Portfolio – Service II Shares (JanIntGroS2) 57,043 shares (cost $2,555,287)		2,897,765
Janus Aspen Series – International Growth Portfolio – Service Shares (JanIntGroS) 103,313 shares (cost $3,902,092)		5,228,674
MFS® Variable Insurance Trust – Investors Growth Stock Series – Initial Class (MFSInvGrStl) 26,711 shares (cost $247,496)		284,468
MFS® Variable Insurance Trust – Value Series – Initial Class (MFSValueI) 64,836 shares (cost $836,955)		941,412

(Continued)

5

NATIONWIDE VLI SEPARATE ACCOUNT-2

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

Neuberger Berman Advisers Management Trust – Balanced Portfolio® – I Class Shares (NBAMTBal) 3,566 shares (cost $34,991)	$	40,791
Neuberger Berman Advisers Management Trust – Fasciano Portfolio – Class S (NBAMTFasc) 6,314 shares (cost $89,474)		91,747
Neuberger Berman Advisers Management Trust – Growth Portfolio® – Class I (NBAMTGro) 1,121,615 shares (cost $11,008,995)		17,643,010
Neuberger Berman Advisers Management Trust – Guardian Portfolio – I Class Shares (NBAMTGuard) 103,199 shares (cost $1,475,525)		2,034,060
Neuberger Berman Advisers Management Trust – International Portfolio – Class S (NBAMTInt) 22,711 shares (cost $289,361)		324,541
Neuberger Berman Advisers Management Trust – Limited Maturity Bond Portfolio – Class I (NBAMTLMat) 295,850 shares (cost $3,881,596)		3,775,045
Neuberger Berman Advisers Management Trust – Mid Cap Growth Portfolio® – S Class Shares (NBAMTMCGrS) 22,965 shares (cost $503,839)		528,661
Neuberger Berman Advisers Management Trust – Partners Portfolio® – Class I (NBAMTPart) 1,298,011 shares (cost $21,051,798)		27,465,907
Neuberger Berman Advisers Management Trust – Regency Portfolio – Class S (NBAMTRegS) 9,841 shares (cost $168,813)		170,739
Neuberger Berman Advisers Management Trust – Socially Responsive Portfolio® – Class I (NBAMTSocRes) 25,744 shares (cost $384,358)		430,182
Oppenheimer Global Securities Fund/VA – Class 3 (OppGlSec3) 182,282 shares (cost $5,927,823)		6,742,613
Oppenheimer Variable Account Funds – Oppenheimer Balanced Fund/VA – Non-Service Shares (OppBal) 776,399 shares (cost $11,964,760)		13,734,501
Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA – Non-Service Shares (OppCapAp) 269,346 shares (cost $8,402,260)		11,159,011
Oppenheimer Variable Account Funds – Oppenheimer Core Bond Fund/VA – Non-Service Shares (OppBdFd) 1,026,060 shares (cost $11,220,181)		11,450,827
Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA – Non-Service Shares (OppGlSec) 974,519 shares (cost $22,325,848)		35,852,551
Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA – Non-Service Shares (OppHighInc) 77,683 shares (cost $639,448)		664,190
Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA – Non-Service Shares (OppMSt) 97,089 shares (cost $2,064,792)		2,405,864
Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA – Non-Service Shares (OppMStSCap) 59,159 shares (cost $1,074,750)		1,132,892
Oppenheimer Variable Account Funds – Oppenheimer Mid Cap Fund/VA – Non-Service Shares (OppMidCap) 31,048 shares (cost $1,419,137)		1,578,775
Putnam Variable Trust – Putnam VT Growth and Income Fund – IB Shares (PVTGroIncIB) 3,944 shares (cost $102,728)		115,802
Putnam Variable Trust – Putnam VT International Equity Fund – IB Shares (PVTIntEqIB) 17,953 shares (cost $310,029)		370,556
Putnam Variable Trust – Putnam VT Voyager II Fund – IB Shares (PVTVoyIB) 2,690 shares (cost $73,566)		80,880
T. Rowe Price Blue Chip Growth Portfolio – II (TRoeBlChip2) 34,221 shares (cost $331,539)		356,236

(Continued)

6

NATIONWIDE VLI SEPARATE ACCOUNT-2

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

T. Rowe Price Equity Income Portfolio – II (TRowEqInc2) 51,984 shares (cost $1,215,698)	$	1,289,206
T. Rowe Price Limited Term Bond Portfolio – Class II (TRowLtdTBd2) 12,653 shares (cost $61,749)		61,998
Van Eck Worldwide Insurance Trust – Worldwide Bond Fund – Initial Class (VEWrldBd) 241,448 shares (cost $2,936,060)		2,844,253
Van Eck Worldwide Insurance Trust – Worldwide Emerging Markets Fund – Initial Class (VEWrldEMkt) 451,765 shares (cost $7,487,742)		11,285,079
Van Eck Worldwide Insurance Trust – Worldwide Hard Assets Fund – Initial Class (VEWrldHAs) 339,584 shares (cost $8,320,452)		11,107,779
Van Kampen – The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio – Class I (VKCorPlus) 29,974 shares (cost $340,874)		341,699
Van Kampen – The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio – Class I (VKEmMkt) 278,214 shares (cost $2,417,665)		2,481,666
Van Kampen – The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio – Class I (VKUSRealEst) 915,134 shares (cost $17,157,882)		26,868,339
Wells Fargo Advantage Variable Trust FundsSM – Wells Fargo Advantage VT Discovery FundSM (WFAVTDisc) 497,374 shares (cost $5,724,963)		8,176,821
Wells Fargo Advantage Variable Trust FundsSM – Wells Fargo Advantage VT Opportunity FundSM (WFAVTOpp) 1,406,424 shares (cost $27,447,485)		33,782,310
Total Investments		980,710,041
Accounts Receivable		117,079
Total Assets		980,827,120
Accounts Payable		–
Contract Owners Equity (note 7)	$	980,827,120

See accompanying notes to financial statements.

7

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS

Year Ended December 31, 2006

Investment activity:	Total			AIMBValue		AIMCapAp		AIMCapDev		AlVPGrIncA		AlVPSmMdCpA		ACVPBal		ACVPCapAp
Reinvested dividends	$	14,468,362		4,993		38		–		14,544		4,267		102,495		–
Mortality and expense risk charges (note 3)		(6,009,785	)	(5,333	)	(556	)	(2,227	)	(4,996	)	(6,492	)	(33,913	)	(96,111	)
Net investment income (loss)		8,458,577		(340	)	(518	)	(2,227	)	9,548		(2,225	)	68,582		(96,111	)
Proceeds from mutual fund shares sold		199,375,412		220,337		118,454		194,886		365,349		210,615		1,041,011		2,706,296
Cost of mutual fund shares sold		(183,704,607	)	(185,359	)	(109,130	)	(150,334	)	(329,773	)	(179,810	)	(1,006,846	)	(2,375,405	)
Realized gain (loss) on investments		15,670,805		34,978		9,324		44,552		35,576		30,805		34,165		330,891
Change in unrealized gain (loss) on investments		59,883,124		26,733		(2,526	)	(2,722	)	53,118		46,899		7,456		1,928,710
Net gain (loss) on investments		75,553,929		61,711		6,798		41,830		88,694		77,704		41,621		2,259,601
Reinvested capital gains		33,553,421		55,210		–		6,748		52,880		70,543		343,547		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	117,565,927		116,581		6,280		46,351		151,122		146,022		453,750		2,163,490
Investment activity:	ACVPIncGr			ACVPInfPro2		ACVPInt		ACVPInt3		ACVPMdCpV		ACVPUltra		ACVPVal		ACVPVista
Reinvested dividends	$	65,864		30,524		166,349		22,598		4,085		–		186,669		–
Mortality and expense risk charges (note 3)		(21,633	)	(5,337	)	(64,871	)	(11,439	)	(1,547	)	(3,185	)	(82,201	)	(260	)
Net investment income (loss)		44,231		25,187		101,478		11,159		2,538		(3,185	)	104,468		(260	)
Proceeds from mutual fund shares sold		771,736		573,803		2,128,641		2,037,877		650,831		360,003		2,986,585		12,741
Cost of mutual fund shares sold		(516,723	)	(582,501	)	(1,274,215	)	(1,770,759	)	(630,458	)	(346,066	)	(2,297,986	)	(12,022	)
Realized gain (loss) on investments		255,013		(8,698	)	854,426		267,118		20,373		13,937		688,599		719
Change in unrealized gain (loss) on investments		243,170		(8,024	)	1,225,587		148,652		10,804		(32,309	)	242,399		1,061
Net gain (loss) on investments		498,183		(16,722	)	2,080,013		415,770		31,177		(18,372	)	930,998		1,780
Reinvested capital gains		–		–		–		–		18,160		–		1,177,539		117
Net increase (decrease) in contract owners’ equity resulting from operations	$	542,414		8,465		2,181,491		426,929		51,875		(21,557	)	2,213,005		1,637

(Continued)

8

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006

Investment activity:	CSTGlSmCp			CSTIntFoc		CSTSmCapGr		DryIPSmCap		DrySRGro		DryStkIx		DryVIApp		DryVIFDevLd
Reinvested dividends	$	–		77,469		–		7,705		9,164		1,253,956		87,814		1,804
Mortality and expense risk charges (note 3)		(6,024	)	(46,088	)	(78,172	)	(12,088	)	(58,468	)	(464,424	)	(38,996	)	(2,515	)
Net investment income (loss)		(6,024	)	31,381		(78,172	)	(4,383	)	(49,304	)	789,532		48,818		(711	)
Proceeds from mutual fund shares sold		518,708		1,634,121		2,547,846		724,052		1,016,183		12,081,733		1,518,836		158,814
Cost of mutual fund shares sold		(379,982	)	(1,121,061	)	(1,551,599	)	(554,996	)	(1,452,024	)	(12,711,464	)	(1,083,489	)	(154,438	)
Realized gain (loss) on investments		138,726		513,060		996,247		169,056		(435,841	)	(629,731	)	435,347		4,376
Change in unrealized gain (loss) on investments		(20,240	)	651,016		(366,875	)	45,191		1,181,954		10,398,460		398,055		(33,937	)
Net gain (loss) on investments		118,486		1,164,076		629,372		214,247		746,113		9,768,729		833,402		(29,561	)
Reinvested capital gains		–		–		–		43,700		–		–		–		37,304
Net increase (decrease) in contract owners’ equity resulting from operations	$	112,462		1,195,457		551,200		253,564		696,809		10,558,261		882,220		7,032
Investment activity:	DryVIFGrInc			FedAmLead		FedCapAp		FedQualBd		FidVIPEI		FidVIPGr		FidVIPHI		FidVIPOv
Reinvested dividends	$	16,984		2,717		207		45,766		2,498,427		325,352		1,498,959		153,501
Mortality and expense risk charges (note 3)		(13,398	)	(1,066	)	(161	)	(8,691	)	(479,753	)	(536,301	)	(118,144	)	(102,092	)
Net investment income (loss)		3,586		1,651		46		37,075		2,018,674		(210,949	)	1,380,815		51,409
Proceeds from mutual fund shares sold		446,591		21,746		25,904		406,894		9,490,482		12,797,635		5,351,241		3,215,579
Cost of mutual fund shares sold		(445,482	)	(21,820	)	(20,527	)	(431,839	)	(9,866,748	)	(16,183,043	)	(5,653,906	)	(1,727,485	)
Realized gain (loss) on investments		1,109		(74	)	5,377		(24,945	)	(376,266	)	(3,385,408	)	(302,665	)	1,488,094
Change in unrealized gain (loss) on investments		285,427		3,883		(973	)	38,596		2,830,737		8,485,090		869,670		1,075,141
Net gain (loss) on investments		286,536		3,809		4,404		13,651		2,454,471		5,099,682		567,005		2,563,235
Reinvested capital gains		–		22,481		–		–		9,044,526		–		–		106,712
Net increase (decrease) in contract owners’ equity resulting from operations	$	290,122		27,941		4,450		50,726		13,517,671		4,888,733		1,947,820		2,721,356

(Continued)

9

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006

Investment activity:	FidVIPOvSR			FidVIPAM		FidVIPCon		FidVIPIGBdS		FidVIPGrOp		FidVIPMCapS		FidVIPVaIS		FidVIPEnergyS2
Reinvested dividends	$	32,669		568,944		897,367		99,587		27,244		22,593		5,476		23,719
Mortality and expense risk charges (note 3)		(23,968	)	(134,010	)	(448,686	)	(17,556	)	(25,301	)	(55,242	)	(7,613	)	(19,848	)
Net investment income (loss)		8,701		434,934		448,681		82,031		1,943		(32,649	)	(2,137	)	3,871
Proceeds from mutual fund shares sold		1,364,352		2,959,831		8,594,447		611,857		667,469		2,291,321		909,351		1,042,686
Cost of mutual fund shares sold		(1,037,803	)	(3,302,155	)	(6,696,627	)	(629,060	)	(552,879	)	(1,746,067	)	(978,924	)	(924,104	)
Realized gain (loss) on investments		326,549		(342,324	)	1,897,820		(17,203	)	114,590		545,254		(69,573	)	118,582
Change in unrealized gain (loss) on investments		353,098		1,259,086		(669,773	)	53,613		67,686		(603,741	)	102,652		(346,483	)
Net gain (loss) on investments		679,647		916,762		1,228,047		36,410		182,276		(58,487	)	33,079		(227,901	)
Reinvested capital gains		24,549		–		5,670,529		6,072		–		1,019,980		183,028		520,211
Net increase (decrease) in contract owners’ equity resulting from operations	$	712,897		1,351,696		7,347,257		124,513		184,219		928,844		213,970		296,181
Investment activity:	FidVIPFree10S			FidVIPFree20S		FidVIPFree30S		FrVIPIncSec2		FrVIPRisDiv		FrVIPSmCapV1		FrVIPDevMrk3		FrVIPForSec
Reinvested dividends	$	3,820		5,190		5,245		–		45,855		27,628		13,797		17,222
Mortality and expense risk charges (note 3)		(509	)	(1,764	)	(563	)	(389	)	(22,630	)	(21,096	)	(6,747	)	(6,968	)
Net investment income (loss)		3,311		3,426		4,682		(389	)	23,225		6,532		7,050		10,254
Proceeds from mutual fund shares sold		44,140		18,141		2,639		13,324		536,950		1,132,592		467,238		503,936
Cost of mutual fund shares sold		(41,260	)	(15,934	)	(2,283	)	(12,314	)	(457,505	)	(880,352	)	(372,427	)	(373,863	)
Realized gain (loss) on investments		2,880		2,207		356		1,010		79,445		252,240		94,811		130,073
Change in unrealized gain (loss) on investments		3,962		23,797		3,034		15,388		452,466		116,649		160,456		90,707
Net gain (loss) on investments		6,842		26,004		3,390		16,398		531,911		368,889		255,267		220,780
Reinvested capital gains		984		3,207		3,726		–		18,463		116,222		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	11,137		32,637		11,798		16,009		573,599		491,643		262,317		231,034

(Continued)

10

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006

Investment activity:	FrVIPForSec3			FrVIPGlInc3		GVITAstAll2		GVITBnd2		GVITGlobGr2		GVITGrowth2		GVITIntValI		GVITIntVal3
Reinvested dividends	$	15,388		4,561		6,188		89		165		3,781		20,157		27,303
Mortality and expense risk charges (note 3)		(5,032	)	(1,164	)	(464	)	(711	)	(705	)	(983	)	(5,798	)	(7,425	)
Net investment income (loss)		10,356		3,397		5,724		(622	)	(540	)	2,798		14,359		19,878
Proceeds from mutual fund shares sold		267,893		133,267		11,842		1,228		36,462		55,324		368,707		390,719
Cost of mutual fund shares sold		(222,830	)	(126,314	)	(11,257	)	(1,216	)	(36,242	)	(57,750	)	(295,944	)	(341,751	)
Realized gain (loss) on investments		45,063		6,953		585		12		220		(2,426	)	72,763		48,968
Change in unrealized gain (loss) on investments		154,011		11,113		7,473		10,263		31,132		24,372		42,289		119,180
Net gain (loss) on investments		199,074		18,066		8,058		10,275		31,352		21,946		115,052		168,148
Reinvested capital gains		–		–		–		–		–		–		63,340		87,625
Net increase (decrease) in contract owners’ equity resulting from operations	$	209,430		21,463		13,782		9,653		30,812		24,744		192,751		275,651
Investment activity:	GVITEmMrkts			GVITEmMrkts3		GVITFHiInc		GVITFHiInc3		GVITGlFin		GVITGlHlth		GVITGlHlth3		GVITGlTech
Reinvested dividends	$	16,981		19,231		21,650		20,415		15,004		–		–		–
Mortality and expense risk charges (note 3)		(16,577	)	(13,757	)	(1,444	)	(1,486	)	(5,641	)	(4,417	)	(3,035	)	(3,449	)
Net investment income (loss)		404		5,474		20,206		18,929		9,363		(4,417	)	(3,035	)	(3,449	)
Proceeds from mutual fund shares sold		1,241,357		1,464,717		119,901		670,551		309,409		427,216		325,832		207,959
Cost of mutual fund shares sold		(893,917	)	(1,252,811	)	(119,899	)	(677,199	)	(285,651	)	(420,810	)	(344,860	)	(184,217	)
Realized gain (loss) on investments		347,440		211,906		2		(6,648	)	23,758		6,406		(19,028	)	23,742
Change in unrealized gain (loss) on investments		331,985		421,457		8,965		7,599		5,779		7,171		32,536		29,036
Net gain (loss) on investments		679,425		633,363		8,967		951		29,537		13,577		13,508		52,778
Reinvested capital gains		25,537		30,546		–		–		102,103		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	705,366		669,383		29,173		19,880		141,003		9,160		10,473		49,329

(Continued)

11

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006

Investment activity:	GVITGlTech3			GVITGlUtl		GVITGvtBd		GVITGrowth		GVITIntGro		GVITIntIdx6		GVITIDAgg2		GVITIDCon2
Reinvested dividends	$	–		45,372		467,138		8,454		10,336		167		50,493		14,033
Mortality and expense risk charges (note 3)		(2,004	)	(10,731	)	(72,144	)	(110,406	)	(9,296	)	(52	)	(15,289	)	(3,603	)
Net investment income (loss)		(2,004	)	34,641		394,994		(101,952	)	1,040		115		35,204		10,430
Proceeds from mutual fund shares sold		355,538		600,876		1,969,467		1,755,369		949,974		227		560,367		315,638
Cost of mutual fund shares sold		(334,262	)	(615,093	)	(2,120,549	)	(4,115,448	)	(780,531	)	(235	)	(467,030	)	(314,250	)
Realized gain (loss) on investments		21,276		(14,217	)	(151,082	)	(2,360,079	)	169,443		(8	)	93,337		1,388
Change in unrealized gain (loss) on investments		5,799		390,133		(31,557	)	3,319,647		227,862		2,298		186,054		7,780
Net gain (loss) on investments		27,075		375,916		(182,639	)	959,568		397,305		2,290		279,391		9,168
Reinvested capital gains		–		132,217		89,332		–		1,912		–		33,920		4,883
Net increase (decrease) in contract owners’ equity resulting from operations	$	25,071		542,774		301,687		857,616		400,257		2,405		348,515		24,481
Investment activity:	GVITIDMod2			GVITIDModAg2		GVITIDModCon2		GVITMdCpGr		GVITMdCpIdx		GVITMyMkt		GVITNWFund		GVITNWLead
Reinvested dividends	$	163,834		133,545		70,891		–		82,720		1,246,049		810,177		4,583
Mortality and expense risk charges (note 3)		(38,980	)	(39,016	)	(22,802	)	(8,447	)	(42,952	)	(173,760	)	(506,252	)	(2,710	)
Net investment income (loss)		124,854		94,529		48,089		(8,447	)	39,768		1,072,289		303,925		1,873
Proceeds from mutual fund shares sold		1,025,229		844,638		302,953		363,390		1,567,096		27,301,953		7,311,226		506,095
Cost of mutual fund shares sold		(809,667	)	(639,642	)	(287,588	)	(284,833	)	(1,044,781	)	(27,301,953	)	(10,719,293	)	(529,654	)
Realized gain (loss) on investments		215,562		204,996		15,365		78,557		522,315		–		(3,408,067	)	(23,559	)
Change in unrealized gain (loss) on investments		271,956		406,666		87,209		53,734		(36,528	)	–		12,236,368		43,954
Net gain (loss) on investments		487,518		611,662		102,574		132,291		485,787		–		8,828,301		20,395
Reinvested capital gains		57,432		71,094		34,355		–		103,301		–		–		39,071
Net increase (decrease) in contract owners’ equity resulting from operations	$	669,804		777,285		185,018		123,844		628,856		1,072,289		9,132,226		61,339

(Continued)

12

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006

Investment activity:	GVITSmCapGr			GVITSmCapVal		GVITSmComp		GVITUSGro		GVITVKVal		GVITMltSec		JanBal		JanForty
Reinvested dividends	$	–		53,610		32,717		2,140		15,642		53,926		4,869		3,536
Mortality and expense risk charges (note 3)		(8,928	)	(72,468	)	(188,644	)	(5,205	)	(5,176	)	(7,366	)	(1,265	)	(15,610	)
Net investment income (loss)		(8,928	)	(18,858	)	(155,927	)	(3,065	)	10,466		46,560		3,604		(12,074	)
Proceeds from mutual fund shares sold		1,164,442		5,649,639		4,119,832		536,405		229,758		259,251		26,787		771,619
Cost of mutual fund shares sold		(987,742	)	(4,969,087	)	(3,345,262	)	(529,487	)	(201,132	)	(261,671	)	(22,873	)	(555,436	)
Realized gain (loss) on investments		176,700		680,552		774,570		6,918		28,626		(2,420	)	3,914		216,183
Change in unrealized gain (loss) on investments		(152,111	)	386,882		2,061,580		(24,714	)	47,073		2,462		16,786		(7,039	)
Net gain (loss) on investments		24,589		1,067,434		2,836,150		(17,796	)	75,699		42		20,700		209,144
Reinvested capital gains		–		911,820		580,447		13,100		42,502		2,816		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	15,661		1,960,396		3,260,670		(7,761	)	128,667		49,418		24,304		197,070
Investment activity:	JanGlTech			JanRMgCore		JanIntGroS2		JanIntGroS		MFSInvGrStl		MFSValueI		NBAMTBal		NBAMTFasc
Reinvested dividends	$	–		217		24,818		89,622		–		4,334		314		–
Mortality and expense risk charges (note 3)		(6,855	)	(1,172	)	(4,404	)	(31,238	)	(1,862	)	(3,097	)	(293	)	(548	)
Net investment income (loss)		(6,855	)	(955	)	20,414		58,384		(1,862	)	1,237		21		(548	)
Proceeds from mutual fund shares sold		432,926		243,782		62,734		2,040,527		82,432		66,414		15,604		81,430
Cost of mutual fund shares sold		(266,266	)	(254,324	)	(63,813	)	(1,053,150	)	(69,831	)	(55,350	)	(12,171	)	(72,767	)
Realized gain (loss) on investments		166,660		(10,542	)	(1,079	)	987,377		12,601		11,064		3,433		8,663
Change in unrealized gain (loss) on investments		(79,000	)	19,487		342,478		536,030		10,130		82,597		565		(5,402	)
Net gain (loss) on investments		87,660		8,945		341,399		1,523,407		22,731		93,661		3,998		3,261
Reinvested capital gains		–		14,511		–		–		–		12,250		–		2,187
Net increase (decrease) in contract owners’ equity resulting from operations	$	80,805		22,501		361,813		1,581,791		20,869		107,148		4,019		4,900

(Continued)

13

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006

Investment activity:	NBAMTGro			NBAMTGuard		NBAMTInt		NBAMTLMat		NBAMTMCGrS		NBAMTPart		NBAMTRegS		NBAMTSocRes
Reinvested dividends	$	–		12,887		607		120,928		–		193,909		715		516
Mortality and expense risk charges (note 3)		(113,010	)	(11,375	)	(1,594	)	(23,359	)	(3,800	)	(158,219	)	(635	)	(1,852	)
Net investment income (loss)		(113,010	)	1,512		(987	)	97,569		(3,800	)	35,690		80		(1,336	)
Proceeds from mutual fund shares sold		1,922,094		321,663		1,362,485		859,022		858,740		4,493,426		93,992		61,108
Cost of mutual fund shares sold		(977,133	)	(220,137	)	(1,292,281	)	(909,823	)	(787,140	)	(3,324,783	)	(90,072	)	(54,499	)
Realized gain (loss) on investments		944,961		101,526		70,204		(50,801	)	71,600		1,168,643		3,920		6,609
Change in unrealized gain (loss) on investments		1,330,092		130,653		(8,136	)	91,438		(7,589	)	(1,230,740	)	(1,287	)	34,903
Net gain (loss) on investments		2,275,053		232,179		62,068		40,637		64,011		(62,097	)	2,633		41,512
Reinvested capital gains		–		–		2,236		–		–		2,986,619		9,918		3,663
Net increase (decrease) in contract owners’ equity resulting from operations	$	2,162,043		233,691		63,317		138,206		60,211		2,960,212		12,631		43,839
Investment activity:	OppGlSec3			OppBal		OppCapAp		OppBdFd		OppGlSec		OppHighInc		OppMSt		OppMStSCap
Reinvested dividends	$	40,764		295,771		44,700		586,110		367,710		43,461		22,275		1,294
Mortality and expense risk charges (note 3)		(31,267	)	(89,995	)	(75,493	)	(68,130	)	(225,108	)	(3,152	)	(10,495	)	(6,149	)
Net investment income (loss)		9,497		205,776		(30,793	)	517,980		142,602		40,309		11,780		(4,855	)
Proceeds from mutual fund shares sold		445,501		2,020,900		2,969,097		1,374,960		6,024,280		223,540		441,393		758,524
Cost of mutual fund shares sold		(353,682	)	(1,979,222	)	(2,074,454	)	(1,436,388	)	(3,930,068	)	(228,616	)	(368,960	)	(656,248	)
Realized gain (loss) on investments		91,819		41,678		894,643		(61,428	)	2,094,212		(5,076	)	72,433		102,276
Change in unrealized gain (loss) on investments		528,285		486,525		(18,989	)	59,204		1,394,466		17,994		185,311		(29,831	)
Net gain (loss) on investments		620,104		528,203		875,654		(2,224	)	3,488,678		12,918		257,744		72,445
Reinvested capital gains		213,406		650,195		–		–		1,920,739		–		–		25,550
Net increase (decrease) in contract owners’ equity resulting from operations	$	843,007		1,384,174		844,861		515,756		5,552,019		53,227		269,524		93,140

(Continued)

14

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006

Investment activity:	OppMidCap			PVTGroIncIB		PVTIntEqIB		PVTVoyIB		TRoeBlChip2		TRowEqInc2		TRowLtdTBd2		VEWrldBd
Reinvested dividends	$	–		1,461		1,227		115		657		10,330		1,900		250,734
Mortality and expense risk charges (note 3)		(12,067	)	(754	)	(1,911	)	(366	)	(1,427	)	(3,731	)	(372	)	(20,030	)
Net investment income (loss)		(12,067	)	707		(684	)	(251	)	(770	)	6,599		1,528		230,704
Proceeds from mutual fund shares sold		599,398		136,581		215,518		34,097		470,226		143,632		3,516		771,049
Cost of mutual fund shares sold		(474,190	)	(127,184	)	(185,674	)	(30,773	)	(462,614	)	(142,530	)	(3,570	)	(835,464	)
Realized gain (loss) on investments		125,208		9,397		29,844		3,324		7,612		1,102		(54	)	(64,415	)
Change in unrealized gain (loss) on investments		(71,606	)	6,494		37,078		1,141		23,688		82,943		312		(4,075	)
Net gain (loss) on investments		53,602		15,891		66,922		4,465		31,300		84,045		258		(68,490	)
Reinvested capital gains		–		2,275		–		–		–		30,539		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	41,535		18,873		66,238		4,214		30,530		121,183		1,786		162,214
Investment activity:	VEWrldEMkt			VEWrldHAs		VKCorPlus		VKEmMkt		VKUSRealEst		WFAVTDisc		WFAVTOpp
Reinvested dividends	$	59,674		7,549		14,379		196,395		249,237		–		–
Mortality and expense risk charges (note 3)		(58,390	)	(72,840	)	(2,445	)	(13,154	)	(148,471	)	(50,456	)	(215,703	)
Net investment income (loss)		1,284		(65,291	)	11,934		183,241		100,766		(50,456	)	(215,703	)
Proceeds from mutual fund shares sold		2,986,468		4,677,310		248,056		1,109,051		3,709,401		1,127,290		3,871,288
Cost of mutual fund shares sold		(1,349,006	)	(2,228,416	)	(252,940	)	(1,061,010	)	(1,730,291	)	(757,520	)	(3,871,233	)
Realized gain (loss) on investments		1,637,462		2,448,894		(4,884	)	48,041		1,979,110		369,770		55
Change in unrealized gain (loss) on investments		639,534		(885,664	)	277		(46,208	)	3,692,843		714,074		263,654
Net gain (loss) on investments		2,276,996		1,563,230		(4,607	)	1,833		5,671,953		1,083,844		263,709
Reinvested capital gains		939,523		642,387		1,911		42,664		1,496,337		–		3,582,720
Net increase (decrease) in contract owners’ equity resulting from operations	$	3,217,803		2,140,326		9,238		227,738		7,269,056		1,033,388		3,630,726

See accompanying notes to financial statements.

15

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2006 and 2005

	Total					AIMBValue				AIMCapAp				AIMCapDev
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	8,458,577		6,756,450		(340	)	(4,391	)	(518	)	(965	)	(2,227	)	(1,518	)
Realized gain (loss) on investments		15,670,805		5,802,397		34,978		10,911		9,324		5,870		44,552		14,662
Change in unrealized gain (loss) on investments		59,883,124		44,234,328		26,733		23,967		(2,526	)	787		(2,722	)	9,434
Reinvested capital gains		33,553,421		13,179,108		55,210		8,914		–		–		6,748		–
Net increase (decrease) in contract owners’ equity resulting from operations		117,565,927		69,972,283		116,581		39,401		6,280		5,692		46,351		22,578
Equity transactions:
Purchase payments received from contract owners (note 6)		57,002,649		63,121,158		53,182		88,640		1,925		6,876		20,007		20,052
Transfers between funds		–		–		423,535		62,224		(18,532	)	17,342		113,190		(14,078	)
Surrenders (note 6)		(69,702,501	)	(69,500,794	)	(14,004	)	(29,194	)	(1,854	)	(994	)	(3,655	)	(10,546	)
Death benefits (note 4)		(5,384,769	)	(3,794,134	)	(1,660	)	(106	)	–		–		(821	)	–
Net policy repayments (loans) (note 5)		(3,089,028	)	898,160		(24,667	)	(3,764	)	31		10		(4,123	)	(306	)
Deductions for surrender charges (note 2d)		(622,220	)	(1,252,942	)	(22	)	(88	)	–		(118	)	(808	)	(62	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(44,413,062	)	(45,231,780	)	(30,050	)	(26,368	)	(4,257	)	(2,562	)	(16,711	)	(12,998	)
Asset charges (note 3):
MSP contracts		(424,218	)	(402,742	)	(19	)	(21	)	(35	)	(17	)	(72	)	(59	)
LSFP contracts		(461,922	)	(424,918	)	(118	)	(72	)	–		(5	)	(231	)	(200	)
Adjustments to maintain reserves		956,504		387,993		(26	)	43		18		6		22		(28	)
Net equity transactions		(66,138,567	)	(56,199,999	)	406,151		91,294		(22,704	)	20,538		106,798		(18,225	)
Net change in contract owners’ equity		51,427,360		13,772,284		522,732		130,695		(16,424	)	26,230		153,149		4,353
Contract owners’ equity beginning of period		929,399,760		915,627,476		801,432		670,737		84,630		58,400		243,600		239,247
Contract owners’ equity end of period	$	980,827,120		929,399,760		1,324,164		801,432		68,206		84,630		396,749		243,600
CHANGES IN UNITS:
Beginning units		40,704,624		39,381,106		53,106		46,810		5,992		4,476		15,036		16,082
Units purchased		10,587,187		15,006,946		32,232		30,105		2,692		1,956		10,145		2,056
Units redeemed		(12,097,075	)	(13,683,428	)	(7,508	)	(23,809	)	(4,122	)	(440	)	(4,079	)	(3,102	)
Ending units		39,194,736		40,704,624		77,830		53,106		4,562		5,992		21,102		15,036

(Continued)

16

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	AlVPGrIncA					AlVPSmMdCpA				ACVPBal				ACVPCapAp
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	9,548		11,560		(2,225	)	525		68,582		62,853		(96,111	)	(91,300	)
Realized gain (loss) on investments		35,576		49,864		30,805		31,534		34,165		(13,745	)	330,891		(133,799	)
Change in unrealized gain (loss) on investments		53,118		(18,971	)	46,899		(14,639	)	7,456		175,002		1,928,710		2,711,854
Reinvested capital gains		52,880		–		70,543		40,190		343,547		2,138		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		151,122		42,453		146,022		57,610		453,750		226,248		2,163,490		2,486,755
Equity transactions:
Purchase payments received from contract owners (note 6)		115,628		128,310		90,901		88,588		327,424		327,960		765,972		991,958
Transfers between funds		22,114		100,470		63,950		116,956		(442,403	)	(112,376	)	(211,697	)	188,038
Surrenders (note 6)		(103,010	)	(210,372	)	(31,726	)	(39,544	)	(394,033	)	(405,472	)	(1,198,454	)	(822,808	)
Death benefits (note 4)		–		–		–		(90	)	(12,437	)	(38,842	)	(165,926	)	(76,010	)
Net policy repayments (loans) (note 5)		(13,854	)	(178	)	(27,219	)	(17,086	)	(52,335	)	(52,262	)	(94,347	)	(39,198	)
Deductions for surrender charges (note 2d)		(1,956	)	(1,162	)	(1,877	)	(486	)	(3,701	)	(7,328	)	(3,610	)	(15,062	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(35,794	)	(39,592	)	(38,224	)	(35,760	)	(246,231	)	(262,706	)	(767,284	)	(726,550	)
Asset charges (note 3):
MSP contracts		(1,147	)	(1,148	)	(334	)	(421	)	(4,975	)	(5,102	)	(5,771	)	(4,938	)
LSFP contracts		(1,365	)	(1,076	)	(129	)	(184	)	(1,147	)	(1,530	)	(2,500	)	(2,442	)
Adjustments to maintain reserves		34		8		106		(93	)	822		(356	)	126,244		(21,392	)
Net equity transactions		(19,350	)	(24,740	)	55,448		111,880		(829,016	)	(558,014	)	(1,557,373	)	(528,404	)
Net change in contract owners’ equity		131,772		17,713		201,470		169,490		(375,266	)	(331,766	)	606,117		1,958,351
Contract owners’ equity beginning of period		931,146		913,433		1,021,977		852,487		5,394,717		5,726,483		13,951,842		11,993,491
Contract owners’ equity end of period	$	1,062,918		931,146		1,223,447		1,021,977		5,019,451		5,394,717		14,557,959		13,951,842
CHANGES IN UNITS:
Beginning units		64,958		66,458		59,044		52,384		264,940		263,900		720,786		658,094
Units purchased		13,974		21,716		14,297		29,959		27,737		107,087		104,513		348,294
Units redeemed		(15,516	)	(23,216	)	(11,257	)	(23,299	)	(67,379	)	(106,047	)	(217,569	)	(285,602	)
Ending units		63,416		64,958		62,084		59,044		225,298		264,940		607,730		720,786

(Continued)

17

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	ACVPIncGr					ACVPInfPro2				ACVPInt				ACVPInt3
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	44,231		49,261		25,187		39,757		101,478		57,173		11,159		(5,345	)
Realized gain (loss) on investments		255,013		247,573		(8,698	)	(2,530	)	854,426		430,674		267,118		38,748
Change in unrealized gain (loss) on investments		243,170		(159,572	)	(8,024	)	(28,790	)	1,225,587		631,256		148,652		147,123
Reinvested capital gains		–		–		–		568		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		542,414		137,262		8,465		9,005		2,181,491		1,119,103		426,929		180,526
Equity transactions:
Purchase payments received from contract owners (note 6)		137,970		189,444		35,285		66,570		10,447		243,198		565,664		444,582
Transfers between funds		(164,490	)	(113,836	)	(107,852	)	241,474		(861,287	)	(1,303,244	)	(106,353	)	907,628
Surrenders (note 6)		(308,975	)	(233,010	)	(180,674	)	(51,112	)	(581,619	)	(636,772	)	(220,922	)	(172,776	)
Death benefits (note 4)		(10,551	)	–		(316	)	–		(12,907	)	(11,794	)	(872	)	(236	)
Net policy repayments (loans) (note 5)		46,341		3,426		(24,236	)	(11,166	)	(124,163	)	(155,324	)	83,718		228,558
Deductions for surrender charges (note 2d)		(5,700	)	(4,528	)	(2,081	)	(138	)	(7,053	)	(14,894	)	(1,813	)	(344	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(148,138	)	(157,308	)	(38,167	)	(42,692	)	(374,063	)	(433,704	)	(91,911	)	(33,328	)
Asset charges (note 3):
MSP contracts		(2,367	)	(2,386	)	(873	)	(814	)	(2,785	)	(2,996	)	(731	)	(469	)
LSFP contracts		(977	)	(1,278	)	(474	)	(80	)	(5,694	)	(5,407	)	(1,311	)	(328	)
Adjustments to maintain reserves		42		(3	)	160		(27	)	85		502		64		72
Net equity transactions		(456,845	)	(319,479	)	(319,228	)	202,015		(1,959,039	)	(2,320,435	)	225,533		1,373,359
Net change in contract owners’ equity		85,569		(182,217	)	(310,763	)	211,020		222,452		(1,201,332	)	652,462		1,553,885
Contract owners’ equity beginning of period		3,638,205		3,820,422		1,174,579		963,559		9,984,737		11,186,069		1,553,885		–
Contract owners’ equity end of period	$	3,723,774		3,638,205		863,816		1,174,579		10,207,189		9,984,737		2,206,347		1,553,885
CHANGES IN UNITS:
Beginning units		297,572		322,014		107,722		89,246		549,068		650,574		133,622		–
Units purchased		54,380		99,246		11,699		32,808		88,332		149,191		56,124		141,605
Units redeemed		(90,482	)	(123,688	)	(41,203	)	(14,332	)	(181,504	)	(250,697	)	(37,088	)	(7,983	)
Ending units		261,470		297,572		78,218		107,722		455,896		549,068		152,658		133,622

(Continued)

18

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	ACVPMdCpV					ACVPUltra				ACVPVal				ACVPVista
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	2,538		632		(3,185	)	(4,830	)	104,468		24,447		(260	)	(24	)
Realized gain (loss) on investments		20,373		–		13,937		25,482		688,599		440,213		719		46
Change in unrealized gain (loss) on investments		10,804		(435	)	(32,309	)	(39,774	)	242,399		(1,258,011	)	1,061		37
Reinvested capital gains		18,160		2,402		–		–		1,177,539		1,360,674		117		–
Net increase (decrease) in contract owners’ equity resulting from operations		51,875		2,599		(21,557	)	(19,122	)	2,213,005		567,323		1,637		59
Equity transactions:
Purchase payments received from contract owners (note 6)		31,883		2,690		30,683		30,928		608,706		750,758		2,572		28
Transfers between funds		496,403		100,510		(188,618	)	(69,202	)	(140,596	)	158,172		10,306		29,076
Surrenders (note 6)		(1,559	)	–		(14,930	)	(77,334	)	(902,976	)	(719,062	)	–		–
Death benefits (note 4)		–		–		–		(5,908	)	(8,081	)	(808	)	–		–
Net policy repayments (loans) (note 5)		1,333		(1,290	)	(14,299	)	(9,016	)	(66,301	)	(89,452	)	(29	)	–
Deductions for surrender charges (note 2d)		–		–		(61	)	(202	)	(6,367	)	(17,348	)	–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(9,282	)	(1,092	)	(22,383	)	(23,720	)	(499,627	)	(513,258	)	(2,566	)	(120	)
Asset charges (note 3):
MSP contracts		(227	)	(5	)	(345	)	(291	)	(7,479	)	(7,115	)	–		(5	)
LSFP contracts		(158	)	(14	)	(602	)	(513	)	(8,181	)	(7,741	)	–		–
Adjustments to maintain reserves		(4	)	59		16		(5	)	1,797		(228	)	31		23
Net equity transactions		518,389		100,858		(210,539	)	(155,263	)	(1,029,105	)	(446,082	)	10,314		29,002
Net change in contract owners’ equity		570,264		103,457		(232,096	)	(174,385	)	1,183,900		121,241		11,951		29,061
Contract owners’ equity beginning of period		103,457		–		770,992		945,377		13,490,801		13,369,560		29,061		–
Contract owners’ equity end of period	$	673,721		103,457		538,896		770,992		14,674,701		13,490,801		41,012		29,061
CHANGES IN UNITS:
Beginning units		9,176		–		69,460		86,518		616,380		621,194		2,548		–
Units purchased		41,564		9,395		7,963		13,155		145,948		172,292		2,998		2,559
Units redeemed		(836	)	(219	)	(27,129	)	(30,213	)	(192,658	)	(177,106	)	(2,230	)	(11	)
Ending units		49,904		9,176		50,294		69,460		569,670		616,380		3,316		2,548

(Continued)

19

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	CSTGlSmCp					CSTIntFoc				CSTSmCapGr				DryIPSmCap
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(6,024	)	(5,963	)	31,381		16,193		(78,172	)	(89,573	)	(4,383	)	(11,733	)
Realized gain (loss) on investments		138,726		179,468		513,060		254,980		996,247		1,029,425		169,056		164,240
Change in unrealized gain (loss) on investments		(20,240	)	(46,376	)	651,016		790,968		(366,875	)	(1,440,310	)	45,191		(35,007	)
Reinvested capital gains		–		–		–		–		–		–		43,700		5,886
Net increase (decrease) in contract owners’ equity resulting from operations		112,462		127,129		1,195,457		1,062,141		551,200		(500,458	)	253,564		123,386
Equity transactions:
Purchase payments received from contract owners (note 6)		47,889		63,986		377,303		413,648		775,675		974,358		117,090		94,092
Transfers between funds		(48,464	)	54,316		(150,794	)	(255,978	)	(1,026,283	)	(767,204	)	21,029		(67,224	)
Surrenders (note 6)		(64,785	)	(36,774	)	(482,407	)	(264,698	)	(1,029,079	)	(793,446	)	(189,949	)	(121,940	)
Death benefits (note 4)		(28,137	)	–		(57,139	)	(77,954	)	(25,938	)	(54,252	)	–		–
Net policy repayments (loans) (note 5)		8,868		(27,512	)	(56,763	)	9,452		(5,522	)	58,184		(5,330	)	(9,566	)
Deductions for surrender charges (note 2d)		(1,512	)	(76	)	(7,246	)	(11,918	)	(18,438	)	(21,220	)	(26	)	(2,670	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(44,982	)	(51,638	)	(328,515	)	(317,826	)	(613,043	)	(692,044	)	(79,874	)	(69,272	)
Asset charges (note 3):
MSP contracts		(719	)	(645	)	(4,257	)	(3,637	)	(3,915	)	(4,434	)	(2,052	)	(2,841	)
LSFP contracts		(976	)	(838	)	(6,344	)	(5,839	)	(9,076	)	(9,795	)	(1,800	)	(1,433	)
Adjustments to maintain reserves		22		26		172		3,746		262		147,315		(58	)	39
Net equity transactions		(132,796	)	845		(715,990	)	(511,004	)	(1,955,357	)	(1,162,538	)	(140,970	)	(180,815	)
Net change in contract owners’ equity		(20,334	)	127,974		479,467		551,137		(1,404,157	)	(1,662,996	)	112,594		(57,429	)
Contract owners’ equity beginning of period		958,231		830,257		7,154,713		6,603,576		12,767,225		14,430,221		2,035,258		2,092,687
Contract owners’ equity end of period	$	937,897		958,231		7,634,180		7,154,713		11,363,068		12,767,225		2,147,852		2,035,258
CHANGES IN UNITS:
Beginning units		67,546		65,698		517,716		553,182		757,296		801,312		150,290		165,014
Units purchased		13,854		17,988		166,651		78,912		172,749		164,876		36,205		44,866
Units redeemed		(20,328	)	(16,140	)	(215,027	)	(114,378	)	(276,817	)	(208,892	)	(47,097	)	(59,590	)
Ending units		61,072		67,546		469,340		517,716		653,228		757,296		139,398		150,290

(Continued)

20

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	DrySRGro					DryStkIx				DryVIApp				DryVIFDevLd
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(49,304	)	(62,999	)	789,532		732,685		48,818		(40,198	)	(711	)	(2,552	)
Realized gain (loss) on investments		(435,841	)	(561,801	)	(629,731	)	(1,543,716	)	435,347		208,666		4,376		5,471
Change in unrealized gain (loss) on investments		1,181,954		868,402		10,398,460		3,730,757		398,055		43,167		(33,937	)	16,850
Reinvested capital gains		–		–		–		–		–		–		37,304		–
Net increase (decrease) in contract owners’ equity resulting from operations		696,809		243,602		10,558,261		2,919,726		882,220		211,635		7,032		19,769
Equity transactions:
Purchase payments received from contract owners (note 6)		833,043		976,402		4,144,765		6,390,148		312,847		365,466		31,506		34,892
Transfers between funds		(428,466	)	(565,722	)	(3,413,229	)	(6,220,270	)	(325,424	)	(339,064	)	9,961		(22,200	)
Surrenders (note 6)		(736,233	)	(447,314	)	(6,390,077	)	(4,670,510	)	(208,368	)	(364,278	)	(83,602	)	(4,278	)
Death benefits (note 4)		(64,260	)	(26,172	)	(337,394	)	(132,604	)	(3,569	)	–		(122	)	–
Net policy repayments (loans) (note 5)		145,274		(58,546	)	(609,188	)	160,438		(60,634	)	38,078		(5,510	)	(3,002	)
Deductions for surrender charges (note 2d)		(7,417	)	(20,686	)	(52,509	)	(145,956	)	(6,416	)	(13,214	)	(165	)	(136	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(570,614	)	(639,946	)	(3,403,423	)	(3,639,900	)	(234,430	)	(253,240	)	(23,256	)	(23,160	)
Asset charges (note 3):
MSP contracts		(2,468	)	(2,569	)	(29,388	)	(31,664	)	(1,107	)	(1,103	)	(118	)	(269	)
LSFP contracts		(2,992	)	(3,311	)	(65,134	)	(62,339	)	(6,453	)	(6,611	)	(366	)	(352	)
Adjustments to maintain reserves		1,201		(197	)	4,280		143,866		221		(733	)	3		39
Net equity transactions		(832,932	)	(788,061	)	(10,151,297	)	(8,208,791	)	(533,333	)	(574,699	)	(71,669	)	(18,466	)
Net change in contract owners’ equity		(136,123	)	(544,459	)	406,964		(5,289,065	)	348,887		(363,064	)	(64,637	)	1,303
Contract owners’ equity beginning of period		8,793,205		9,337,664		75,948,479		81,237,544		5,785,195		6,148,259		437,677		436,374
Contract owners’ equity end of period	$	8,657,082		8,793,205		76,355,443		75,948,479		6,134,082		5,785,195		373,040		437,677
CHANGES IN UNITS:
Beginning units		398,460		420,438		2,948,454		3,024,638		420,248		456,698		29,256		30,716
Units purchased		86,163		93,584		533,365		797,667		117,685		90,951		6,692		7,425
Units redeemed		(121,715	)	(115,562	)	(844,481	)	(873,851	)	(136,551	)	(127,401	)	(11,792	)	(8,885	)
Ending units		362,908		398,460		2,637,338		2,948,454		401,382		420,248		24,156		29,256

(Continued)

21

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	DryVIFGrInc					FedAmLead				FedCapAp				FedQualBd
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	3,586		16,044		1,651		1,137		46		118		37,075		33,635
Realized gain (loss) on investments		1,109		(32,073	)	(74	)	1,320		5,377		428		(24,945	)	(5,249	)
Change in unrealized gain (loss) on investments		285,427		73,967		3,883		4,839		(973	)	(356	)	38,596		(28,170	)
Reinvested capital gains		–		–		22,481		–		–		–		–		7,014
Net increase (decrease) in contract owners’ equity resulting from operations		290,122		57,938		27,941		7,296		4,450		190		50,726		7,230
Equity transactions:
Purchase payments received from contract owners (note 6)		128,783		162,380		4,941		6,864		2,133		2,390		78,133		84,588
Transfers between funds		5,480		(38,456	)	13,529		49,256		(17,732	)	(1,056	)	205,525		104,356
Surrenders (note 6)		(208,235	)	(153,462	)	(17,795	)	(4,598	)	(1,014	)	(936	)	(57,324	)	(124,800	)
Death benefits (note 4)		(88,276	)	(40,578	)	–		–		–		–		(863	)	(14	)
Net policy repayments (loans) (note 5)		3,442		(9,498	)	–		4,550		(2,459	)	(6	)	(13,410	)	23,852
Deductions for surrender charges (note 2d)		(3,525	)	(3,774	)	–		–		–		(28	)	(261	)	(2,826	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(119,441	)	(118,650	)	(4,261	)	(4,042	)	(1,329	)	(1,308	)	(69,013	)	(67,980	)
Asset charges (note 3):
MSP contracts		(1,590	)	(1,920	)	–		–		–		–		(1,682	)	(1,484	)
LSFP contracts		(2,824	)	(2,378	)	(47	)	(34	)	–		–		(379	)	(255	)
Adjustments to maintain reserves		95		23		29		26		(2	)	(9	)	3		28
Net equity transactions		(286,091	)	(206,313	)	(3,604	)	52,022		(20,403	)	(953	)	140,729		15,465
Net change in contract owners’ equity		4,031		(148,375	)	24,337		59,318		(15,953	)	(763	)	191,455		22,695
Contract owners’ equity beginning of period		2,310,340		2,458,715		178,508		119,190		25,452		26,215		1,169,203		1,146,508
Contract owners’ equity end of period	$	2,314,371		2,310,340		202,845		178,508		9,499		25,452		1,360,658		1,169,203
CHANGES IN UNITS:
Beginning units		177,166		185,888		12,490		8,716		1,960		2,046		100,922		99,904
Units purchased		24,311		40,682		3,461		5,010		458		261		47,356		34,895
Units redeemed		(45,883	)	(49,404	)	(3,763	)	(1,236	)	(1,780	)	(347	)	(34,594	)	(33,877	)
Ending units		155,594		177,166		12,188		12,490		638		1,960		113,684		100,922

(Continued)

22

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	FidVIPEI					FidVIPGr				FidVIPHI				FidVIPOv
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	2,018,674		688,601		(210,949	)	(170,829	)	1,380,815		3,098,850		51,409		7,651
Realized gain (loss) on investments		(376,266	)	(438,346	)	(3,385,408	)	(4,008,734	)	(302,665	)	73,937		1,488,094		1,211,034
Change in unrealized gain (loss) on investments		2,830,737		691,808		8,485,090		8,161,191		869,670		(2,837,088	)	1,075,141		1,417,693
Reinvested capital gains		9,044,526		2,631,172		–		–		–		–		106,712		95,026
Net increase (decrease) in contract owners’ equity resulting from operations		13,517,671		3,573,235		4,888,733		3,981,628		1,947,820		335,699		2,721,356		2,731,404
Equity transactions:
Purchase payments received from contract owners (note 6)		3,692,252		4,276,432		5,488,181		6,634,272		1,001,448		1,125,916		98,138		339,404
Transfers between funds		(1,100,538	)	(1,568,012	)	(5,811,691	)	(5,237,722	)	780,432		(4,769,268	)	(560,429	)	(2,267,056	)
Surrenders (note 6)		(6,003,272	)	(4,242,404	)	(5,709,362	)	(5,321,108	)	(1,783,680	)	(1,430,746	)	(1,268,080	)	(1,241,402	)
Death benefits (note 4)		(613,030	)	(386,046	)	(286,030	)	(385,328	)	(190,989	)	(55,498	)	(58,159	)	(102,992	)
Net policy repayments (loans) (note 5)		(202,336	)	(324,136	)	(585,121	)	171,620		15,180		147,382		(316,052	)	(196,920	)
Deductions for surrender charges (note 2d)		(37,613	)	(68,256	)	(41,734	)	(92,286	)	(15,389	)	(18,716	)	(12,157	)	(9,828	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(3,388,475	)	(3,460,728	)	(4,323,254	)	(4,618,442	)	(914,286	)	(981,708	)	(578,144	)	(715,194	)
Asset charges (note 3):
MSP contracts		(36,652	)	(35,185	)	(21,734	)	(21,245	)	(12,781	)	(13,335	)	(5,967	)	(5,342	)
LSFP contracts		(29,239	)	(27,017	)	(28,131	)	(29,556	)	(9,012	)	(9,345	)	(9,916	)	(9,197	)
Adjustments to maintain reserves		98,232		(22,180	)	294,974		(67,826	)	14,015		(4,671	)	21,747		(12,213	)
Net equity transactions		(7,620,671	)	(5,857,532	)	(11,023,902	)	(8,967,621	)	(1,115,062	)	(6,009,989	)	(2,689,019	)	(4,220,740	)
Net change in contract owners’ equity		5,897,000		(2,284,297	)	(6,135,169	)	(4,985,993	)	832,758		(5,674,290	)	32,337		(1,489,336	)
Contract owners’ equity beginning 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
Contract owners’ equity end of period	$	79,366,129		73,469,129		78,764,241		84,899,410		19,958,228		19,125,470		17,276,378		17,244,041
CHANGES IN UNITS:
Beginning units		2,082,710		1,873,796		2,764,316		2,468,188		865,500		1,035,038		745,818		867,542
Units purchased		340,139		884,610		423,537		1,237,181		186,842		265,940		87,006		283,227
Units redeemed		(570,529	)	(675,696	)	(782,499	)	(941,053	)	(232,478	)	(435,478	)	(189,746	)	(404,951	)
Ending units		1,852,320		2,082,710		2,405,354		2,764,316		819,864		865,500		643,078		745,818

(Continued)

23

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	FidVIPOvSR					FidVIPAM				FidVIPCon				FidVIPIGBdS
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	8,701		(5,997	)	434,934		450,415		448,681		(254,940	)	82,031		20,737
Realized gain (loss) on investments		326,549		11,146		(342,324	)	(349,641	)	1,897,820		692,489		(17,203	)	(4,025	)
Change in unrealized gain (loss) on investments		353,098		376,763		1,259,086		564,829		(669,773	)	9,019,770		53,613		(13,301	)
Reinvested capital gains		24,549		–		–		7,706		5,670,529		11,226		6,072		20,900
Net increase (decrease) in contract owners’ equity resulting from operations		712,897		381,912		1,351,696		673,309		7,347,257		9,468,545		124,513		24,311
Equity transactions:
Purchase payments received from contract owners (note 6)		945,685		680,560		1,057,356		1,143,732		3,311,632		3,426,214		214,010		121,204
Transfers between funds		1,375,984		1,623,842		(1,314,025	)	(512,764	)	(287,965	)	2,390,668		740,901		1,813,088
Surrenders (note 6)		(372,853	)	(119,598	)	(1,186,526	)	(1,877,914	)	(3,678,724	)	(3,532,336	)	(279,429	)	(61,552	)
Death benefits (note 4)		(2,678	)	(1,624	)	(219,592	)	(272,552	)	(161,026	)	(203,908	)	–		–
Net policy repayments (loans) (note 5)		101,435		175,084		129,784		148,348		(1,201,916	)	(273,738	)	2,999		(2,788	)
Deductions for surrender charges (note 2d)		(752	)	(466	)	(4,100	)	(14,732	)	(43,786	)	(101,032	)	(3,097	)	(1,578	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(261,397	)	(75,868	)	(912,028	)	(980,678	)	(2,746,468	)	(2,656,078	)	(150,448	)	(76,578	)
Asset charges (note 3):
MSP contracts		(431	)	(41	)	(6,405	)	(6,788	)	(27,697	)	(23,286	)	(1,205	)	(1,017	)
LSFP contracts		(2,851	)	(661	)	(4,762	)	(4,954	)	(37,269	)	(31,998	)	(1,284	)	(1,105	)
Adjustments to maintain reserves		65		118		14,727		(13,081	)	2,056		7,607		49		(34	)
Net equity transactions		1,782,207		2,281,346		(2,445,571	)	(2,391,383	)	(4,871,163	)	(997,887	)	522,496		1,789,640
Net change in contract owners’ equity		2,495,104		2,663,258		(1,093,875	)	(1,718,074	)	2,476,094		8,470,658		647,009		1,813,951
Contract owners’ equity beginning of period		2,663,258		–		21,381,233		23,099,307		68,425,817		59,955,159		2,733,368		919,417
Contract owners’ equity end of period	$	5,158,362		2,663,258		20,287,358		21,381,233		70,901,911		68,425,817		3,380,377		2,733,368
CHANGES IN UNITS:
Beginning units		213,864		–		915,956		829,310		2,281,934		2,196,532		255,724		87,010
Units purchased		188,205		227,292		74,849		512,422		664,564		595,164		210,778		183,122
Units redeemed		(48,949	)	(13,428	)	(181,175	)	(425,776	)	(723,524	)	(509,762	)	(163,084	)	(14,408	)
Ending units		353,120		213,864		809,630		915,956		2,222,974		2,281,934		303,418		255,724

(Continued)

24

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	FidVIPGrOp					FidVIPMCapS				FidVIPVaIS				FidVIPEnergyS2
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	1,943		12,284		(32,649	)	(41,647	)	(2,137	)	(9,405	)	3,871		2,772
Realized gain (loss) on investments		114,590		(241,983	)	545,254		274,318		(69,573	)	(17,903	)	118,582		49,408
Change in unrealized gain (loss) on investments		67,686		525,041		(603,741	)	801,405		102,652		(45,834	)	(346,483	)	50,196
Reinvested capital gains		–		–		1,019,980		79,678		183,028		59,032		520,211		85,592
Net increase (decrease) in contract owners’ equity resulting from operations		184,219		295,342		928,844		1,113,754		213,970		(14,110	)	296,181		187,968
Equity transactions:
Purchase payments received from contract owners (note 6)		262,293		344,226		616,546		533,880		126,297		76,358		309,550		58,540
Transfers between funds		(118,787	)	(421,544	)	1,052,459		2,962,566		396,071		(613,290	)	1,941,205		1,649,170
Surrenders (note 6)		(343,652	)	(238,812	)	(596,579	)	(620,812	)	(178,270	)	(211,158	)	(234,415	)	(3,970	)
Death benefits (note 4)		(9,295	)	(5,844	)	(36,060	)	–		–		–		(1,509	)	–
Net policy repayments (loans) (note 5)		12,016		(36,264	)	(85,500	)	(33,242	)	(11,845	)	(12,436	)	(30,615	)	(15,300	)
Deductions for surrender charges (note 2d)		(7,002	)	(6,722	)	(2,905	)	(8,674	)	(3,744	)	(2,170	)	(1,539	)	–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(180,221	)	(195,190	)	(362,880	)	(267,044	)	(51,174	)	(68,474	)	(144,256	)	(29,276	)
Asset charges (note 3):
MSP contracts		(1,332	)	(1,755	)	(3,391	)	(3,034	)	(688	)	(868	)	(1,954	)	(379	)
LSFP contracts		(3,481	)	(3,432	)	(2,580	)	(1,614	)	(1,036	)	(707	)	(626	)	(41	)
Adjustments to maintain reserves		(6	)	24		(44	)	32		52		(35	)	(8	)	85
Net equity transactions		(389,467	)	(565,313	)	579,066		2,562,058		275,663		(832,780	)	1,835,833		1,658,829
Net change in contract owners’ equity		(205,248	)	(269,971	)	1,507,910		3,675,812		489,633		(846,890	)	2,132,014		1,846,797
Contract owners’ equity beginning of period		4,166,506		4,436,477		7,969,055		4,293,243		1,175,007		2,021,897		1,846,797		–
Contract owners’ equity end of period	$	3,961,258		4,166,506		9,476,965		7,969,055		1,664,640		1,175,007		3,978,811		1,846,797
CHANGES IN UNITS:
Beginning units		369,344		422,878		390,220		247,050		86,996		152,482		137,232		–
Units purchased		55,136		50,100		147,940		193,614		56,916		29,683		139,698		140,962
Units redeemed		(89,656	)	(103,634	)	(124,204	)	(50,444	)	(37,688	)	(95,169	)	(22,050	)	(3,730	)
Ending units		334,824		369,344		413,956		390,220		106,224		86,996		254,880		137,232

(Continued)

25

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	FidVIPFree10S					FidVIPFree20S				FidVIPFree30S				FrVIPIncSec2
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	3,311		213		3,426		960		4,682		168		(389	)	–
Realized gain (loss) on investments		2,880		42		2,207		176		356		15		1,010		–
Change in unrealized gain (loss) on investments		3,962		1,320		23,797		13,443		3,034		563		15,388		–
Reinvested capital gains		984		–		3,207		–		3,726		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		11,137		1,575		32,637		14,579		11,798		746		16,009		–
Equity transactions:
Purchase payments received from contract owners (note 6)		4,333		2,332		4,049		1,000		9,134		1,226		26,918		–
Transfers between funds		176,255		72,488		69,862		252,104		306,056		41,294		288,860		–
Surrenders (note 6)		(2,719	)	–		–		–		–		–		–		–
Death benefits (note 4)		–		–		–		–		–		–		–		–
Net policy repayments (loans) (note 5)		(14,989	)	(11,606	)	(244	)	(44	)	(17	)	–		(801	)	–
Deductions for surrender charges (note 2d)		–		–		–		–		–		–		–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(4,612	)	(938	)	(9,774	)	(2,492	)	(4,493	)	(272	)	(2,947	)	–
Asset charges (note 3):
MSP contracts		(385	)	(80	)	(586	)	(331	)	–		–		(190	)	–
LSFP contracts		–		–		–		–		–		–		–		–
Adjustments to maintain reserves		(9	)	56		20		49		4		35		43		–
Net equity transactions		157,874		62,252		63,327		250,286		310,684		42,283		311,883		–
Net change in contract owners’ equity		169,011		63,827		95,964		264,865		322,482		43,029		327,892		–
Contract owners’ equity beginning of period		63,827		–		264,865		–		43,029		–		–		–
Contract owners’ equity end of period	$	232,838		63,827		360,829		264,865		365,511		43,029		327,892		–
CHANGES IN UNITS:
Beginning units		5,924		–		23,914		–		3,818		–		–		–
Units purchased		15,820		7,128		7,475		24,209		25,371		3,842		29,694		–
Units redeemed		(1,974	)	(1,204	)	(2,101		(295	)	(385	)	(24	)	(362	)	–
Ending units		19,770		5,924		29,288		23,914		28,804		3,818		29,332		–

(Continued)

26

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	FrVIPRisDiv					FrVIPSmCapV1				FrVIPDevMrk3				FrVIPForSec
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	23,225		14,646		6,532		6,455		7,050		923		10,254		12,363
Realized gain (loss) on investments		79,445		72,059		252,240		147,731		94,811		8,409		130,073		103,694
Change in unrealized gain (loss) on investments		452,466		(2,803	)	116,649		40,513		160,456		69,238		90,707		20,664
Reinvested capital gains		18,463		19,938		116,222		17,618		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		573,599		103,840		491,643		212,317		262,317		78,570		231,034		136,721
Equity transactions:
Purchase payments received from contract owners (note 6)		288,749		321,422		220,474		268,370		122,854		16,080		4		46,438
Transfers between funds		797,123		923,274		167,582		1,024,200		742,462		563,464		(191,796	)	(246,220	)
Surrenders (note 6)		(273,861	)	(441,810	)	(304,775	)	(223,060	)	(43,074	)	(8,354	)	(229,919	)	(42,594	)
Death benefits (note 4)		(1,686	)	–		(4,464	)	–		–		–		–		(50	)
Net policy repayments (loans) (note 5)		(39,417	)	(10,662	)	(4,647	)	(40,146	)	(15,918	)	(400	)	(37,025	)	(12,664	)
Deductions for surrender charges (note 2d)		(1,234	)	(3,596	)	(871	)	(3,312	)	(362	)	–		(1,941	)	(166	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(138,979	)	(135,758	)	(109,416	)	(107,762	)	(45,872	)	(7,172	)	(35,042	)	(49,820	)
Asset charges (note 3):
MSP contracts		(900	)	(1,993	)	(660	)	(734	)	(1,169	)	(611	)	(558	)	(1,866	)
LSFP contracts		(1,807	)	(1,476	)	(880	)	(689	)	(162	)	(4	)	(695	)	(827	)
Adjustments to maintain reserves		236		(88	)	171		(76	)	45		71		56		6
Net equity transactions		628,224		649,313		(37,486	)	916,791		758,804		563,074		(496,916	)	(307,763	)
Net change in contract owners’ equity		1,201,823		753,153		454,157		1,129,108		1,021,121		641,644		(265,882	)	(171,042	)
Contract owners’ equity beginning of period		3,270,539		2,517,386		3,016,848		1,887,740		641,644		–		1,389,284		1,560,326
Contract owners’ equity end of period	$	4,472,362		3,270,539		3,471,005		3,016,848		1,662,765		641,644		1,123,402		1,389,284
CHANGES IN UNITS:
Beginning units		234,296		185,710		170,032		115,218		50,268		–		81,054		99,854
Units purchased		88,447		85,734		69,419		75,591		61,197		52,129		5,759		19,547
Units redeemed		(48,681	)	(37,148	)	(72,163	)	(20,777	)	(9,209	)	(1,861	)	(32,767	)	(38,347	)
Ending units		274,062		234,296		167,288		170,032		102,256		50,268		54,046		81,054

(Continued)

27

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	FrVIPForSec3					FrVIPGlInc3				GVITAstAll2			GVITBnd2
Investment activity:	2006			2005		2006		2005		2006		2005	2006		2005
Net investment income (loss)	$	10,356		489		3,397		3,108		5,724		–	(622	)	–
Realized gain (loss) on investments		45,063		2,773		6,953		(3,777	)	585		–	12		–
Change in unrealized gain (loss) on investments		154,011		37,464		11,113		132		7,473		–	10,263		–
Reinvested capital gains		–		–		–		–		–		–	–		–
Net increase (decrease) in contract owners’ equity resulting from operations		209,430		40,726		21,463		(537	)	13,782		–	9,653		–
Equity transactions:
Purchase payments received from contract owners (note 6)		144,772		82,782		6,095		16,760		6,127		–	4,728		–
Transfers between funds		643,714		598,340		318,410		47,002		357,636		–	345,842		–
Surrenders (note 6)		(28,386	)	(17,022	)	(12,879	)	–		–		–	–		–
Death benefits (note 4)		–		–		–		–		–		–	–		–
Net policy repayments (loans) (note 5)		(15,744	)	(918	)	(3,917	)	–		325		–	–		–
Deductions for surrender charges (note 2d)		(22	)	(28	)	(379	)	–		–		–	–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(38,367	)	(7,438	)	(5,582	)	(1,264	)	(2,872	)	–	(1,664	)	–
Asset charges (note 3):
MSP contracts		(2,294	)	(198	)	(45	)	(39	)	(255	)	–	–		–
LSFP contracts		(613	)	(261	)	(44	)	(10	)	–		–	–		–
Adjustments to maintain reserves		(23	)	90		29		33		40		–	41		–
Net equity transactions		703,037		655,347		301,688		62,482		361,001		–	348,947		–
Net change in contract owners’ equity		912,467		696,073		323,151		61,945		374,783		–	358,600		–
Contract owners’ equity beginning of period		696,073		–		61,945		–		–		–	–		–
Contract owners’ equity end of period	$	1,608,540		696,073		385,096		61,945		374,783		–	358,600		–
CHANGES IN UNITS:
Beginning units		61,834		–		6,292		–		–		–	–		–
Units purchased		64,406		64,552		31,310		6,425		36,101		–	34,323		–
Units redeemed		(8,004	)	(2,718	)	(2,696	)	(133	)	(469	)	–	(161	)	–
Ending units		118,236		61,834		34,906		6,292		35,632		–	34,162		–

(Continued)

28

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	GVITGlobGr2				GVITGrowth2			GVITIntValI				GVITIntVal3
Investment activity:	2006			2005	2006		2005	2006		2005		2006		2005
Net investment income (loss)	$	(540	)	–	2,798		–	14,359		9,434		19,878		3,888
Realized gain (loss) on investments		220		–	(2,426	)	–	72,763		123,406		48,968		614
Change in unrealized gain (loss) on investments		31,132		–	24,372		–	42,289		(63,445	)	119,180		70,712
Reinvested capital gains		–		–	–		–	63,340		53,106		87,625		11,850
Net increase (decrease) in contract owners’ equity resulting from operations		30,812		–	24,744		–	192,751		122,501		275,651		87,064
Equity transactions:
Purchase payments received from contract owners (note 6)		11,294		–	17,581		–	(52	)	40,142		111,921		88,134
Transfers between funds		854,107		–	644,667		–	(242,421	)	(382,668	)	815,174		845,398
Surrenders (note 6)		–		–	(32,491	)	–	(37,392	)	(174,560	)	(12,250	)	(1,262	)
Death benefits (note 4)		–		–	–		–	–		–		(2,235	)	–
Net policy repayments (loans) (note 5)		(664	)	–	(30	)	–	(44,009	)	(20,866	)	(1,177	)	(11,818	)
Deductions for surrender charges (note 2d)		–		–	(918	)	–	(420	)	(3,928	)	(44	)	(8	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(5,050	)	–	(6,959	)	–	(35,188	)	(51,900	)	(38,661	)	(11,126	)
Asset charges (note 3):
MSP contracts		(65	)	–	(50	)	–	(464	)	(679	)	(424	)	(152	)
LSFP contracts		–		–	–		–	(59	)	(237	)	(458	)	(86	)
Adjustments to maintain reserves		73		–	39		–	(30	)	(3,019	)	22		114
Net equity transactions		859,695		–	621,839		–	(360,035	)	(597,715	)	871,868		909,194
Net change in contract owners’ equity		890,507		–	646,583		–	(167,284	)	(475,214	)	1,147,519		996,258
Contract owners’ equity beginning of period		–		–	–		–	1,042,926		1,518,140		996,258		–
Contract owners’ equity end of period	$	890,507		–	646,583		–	875,642		1,042,926		2,143,777		996,258
CHANGES IN UNITS:
Beginning units		–		–	–		–	56,386		91,502		87,332		–
Units purchased		83,024		–	66,974		–	116		18,401		74,875		91,263
Units redeemed		(594	)	–	(4,348	)	–	(17,718	)	(53,517	)	(8,287	)	(3,931	)
Ending units		82,430		–	62,626		–	38,784		56,386		153,920		87,332

(Continued)

29

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	GVITEmMrkts					GVITEmMrkts3				GVITFHiInc				GVITFHiInc3
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	404		(1,453	)	5,474		(692	)	20,206		31,914		18,929		7,547
Realized gain (loss) on investments		347,440		93,446		211,906		9,394		2		(17,651	)	(6,648	)	494
Change in unrealized gain (loss) on investments		331,985		292,891		421,457		34,834		8,965		(11,541	)	7,599		(4,029	)
Reinvested capital gains		25,537		193,400		30,546		104,312		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		705,366		578,284		669,383		147,848		29,173		2,722		19,880		4,012
Equity transactions:
Purchase payments received from contract owners (note 6)		138,829		43,378		296,509		74,318		(20	)	10,724		113,350		93,216
Transfers between funds		(501,480	)	14,646		647,225		1,253,186		(84,978	)	(287,434	)	44,100		72,750
Surrenders (note 6)		(208,079	)	(99,968	)	(119,029	)	(28,716	)	(14,910	)	(100,240	)	(14,896	)	(734	)
Death benefits (note 4)		(43,065	)	–		–		–		–		–		–		–
Net policy repayments (loans) (note 5)		(26,268	)	(39,768	)	(7,648	)	17,840		(4,206	)	(3,496	)	(2,496	)	1,294
Deductions for surrender charges (note 2d)		(822	)	(2,288	)	(383	)	(238	)	–		(1,270	)	–		(2	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(77,463	)	(90,432	)	(96,841	)	(14,816	)	(13,402	)	(25,634	)	(17,251	)	(6,442	)
Asset charges (note 3):
MSP contracts		(218	)	(938	)	(1,288	)	(189	)	(765	)	(799	)	(280	)	(53	)
LSFP contracts		(1,003	)	(986	)	(1,883	)	(330	)	(179	)	(172	)	(99	)	(23	)
Adjustments to maintain reserves		540		(80	)	90		95		45		(6	)	33		72
Net equity transactions		(719,029	)	(176,436	)	716,752		1,301,150		(118,415	)	(408,327	)	122,461		160,078
Net change in contract owners’ equity		(13,663	)	401,848		1,386,135		1,448,998		(89,242	)	(405,605	)	142,341		164,090
Contract owners’ equity beginning of period		2,330,835		1,928,987		1,448,998		–		346,326		751,931		164,090		–
Contract owners’ equity end of period	$	2,317,172		2,330,835		2,835,133		1,448,998		257,084		346,326		306,431		164,090
CHANGES IN UNITS:
Beginning units		130,590		142,194		109,046		–		28,010		62,024		15,630		–
Units purchased		11,202		37,963		62,414		111,672		1,698		3,549		17,552		19,348
Units redeemed		(45,820	)	(49,567	)	(14,456	)	(2,626	)	(10,836	)	(37,563	)	(6,666	)	(3,718	)
Ending units		95,972		130,590		157,004		109,046		18,872		28,010		26,516		15,630

(Continued)

30

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	GVITGlFin					GVITGlHlth				GVITGlHlth3				GVITGlTech
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	9,363		7,534		(4,417	)	(7,197	)	(3,035	)	(882	)	(3,449	)	(5,066	)
Realized gain (loss) on investments		23,758		8,751		6,406		23,078		(19,028	)	858		23,742		(81,565	)
Change in unrealized gain (loss) on investments		5,779		(21,076	)	7,171		(32,124	)	32,536		(31,731	)	29,036		42,968
Reinvested capital gains		102,103		67,106		–		88,424		–		41,196		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		141,003		62,315		9,160		72,181		10,473		9,441		49,329		(43,663	)
Equity transactions:
Purchase payments received from contract owners (note 6)		38,692		39,184		(8	)	54,890		45,867		32,238		(9	)	47,736
Transfers between funds		112,365		150,044		(245,618	)	(202,846	)	(61,862	)	396,302		(76,033	)	(267,874	)
Surrenders (note 6)		(9,544	)	(36,400	)	(33,641	)	(124,996	)	(3,119	)	(12,484	)	(38,278	)	(24,454	)
Death benefits (note 4)		–		–		–		–		–		–		(46	)	–
Net policy repayments (loans) (note 5)		(87,224	)	7,182		(29,834	)	(52,312	)	58		13,346		(1,640	)	(20,444	)
Deductions for surrender charges (note 2d)		–		(466	)	–		(2,604	)	–		(24	)	(526	)	(532	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(29,186	)	(24,736	)	(20,759	)	(36,958	)	(15,575	)	(5,622	)	(23,666	)	(42,052	)
Asset charges (note 3):
MSP contracts		(77	)	(99	)	(335	)	(624	)	(84	)	(17	)	–		(115	)
LSFP contracts		(110	)	(144	)	(292	)	(475	)	(66	)	–		(335	)	(376	)
Adjustments to maintain reserves		138		(10	)	(16	)	5		33		48		13		(13	)
Net equity transactions		25,054		134,555		(330,503	)	(365,920	)	(34,748	)	423,787		(140,520	)	(308,124	)
Net change in contract owners’ equity		166,057		196,870		(321,343	)	(293,739	)	(24,275	)	433,228		(91,191	)	(351,787	)
Contract owners’ equity beginning of period		738,622		541,752		761,769		1,055,508		433,228		–		585,219		937,006
Contract owners’ equity end of period	$	904,679		738,622		440,426		761,769		408,953		433,228		494,028		585,219
CHANGES IN UNITS:
Beginning units		46,080		37,388		58,678		87,634		40,502		–		191,526		302,962
Units purchased		15,512		24,968		6,633		30,026		9,778		41,388		43,336		34,385
Units redeemed		(14,530	)	(16,276	)	(32,029	)	(58,982	)	(12,858	)	(886	)	(88,336	)	(145,821	)
Ending units		47,062		46,080		33,282		58,678		37,422		40,502		146,526		191,526

(Continued)

31

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	GVITGlTech3					GVITGlUtl				GVITGvtBd				GVITGrowth
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(2,004	)	(558	)	34,641		19,748		394,994		363,429		(101,952	)	(104,011	)
Realized gain (loss) on investments		21,276		1,637		(14,217	)	89,704		(151,082	)	(176,624	)	(2,360,079	)	(2,735,024	)
Change in unrealized gain (loss) on investments		5,799		16,348		390,133		(229,966	)	(31,557	)	99,562		3,319,647		3,772,943
Reinvested capital gains		–		–		132,217		195,266		89,332		22,538		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		25,071		17,427		542,774		74,752		301,687		308,905		857,616		933,908
Equity transactions:
Purchase payments received from contract owners (note 6)		55,504		44,160		95,595		109,630		709,052		703,036		1,873,914		2,125,034
Transfers between funds		(169,289	)	318,266		530,402		307,898		142,389		(365,628	)	(762,149	)	(552,550	)
Surrenders (note 6)		(5,475	)	(182	)	(25,253	)	(142,162	)	(678,489	)	(1,291,822	)	(1,076,839	)	(1,200,768	)
Death benefits (note 4)		(73	)	–		(48,745	)	–		(163,762	)	(100,232	)	(113,328	)	(76,034	)
Net policy repayments (loans) (note 5)		649		14,038		46,899		(6,664	)	(72,413	)	(114,420	)	(43,902	)	19,472
Deductions for surrender charges (note 2d)		–		(10	)	–		(3,028	)	(9,132	)	(15,586	)	(19,139	)	(45,926	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(15,626	)	(4,928	)	(65,591	)	(63,040	)	(574,799	)	(630,986	)	(1,285,998	)	(1,386,344	)
Asset charges (note 3):
MSP contracts		–		–		(590	)	(637	)	(11,130	)	(12,578	)	(4,301	)	(4,544	)
LSFP contracts		(142	)	(38	)	(906	)	(951	)	(4,773	)	(4,419	)	(8,473	)	(9,044	)
Adjustments to maintain reserves		(23	)	160		(8	)	50		21,487		(6,920	)	2,309		1,480
Net equity transactions		(134,475	)	371,466		531,803		201,096		(641,570	)	(1,839,555	)	(1,437,906	)	(1,129,224	)
Net change in contract owners’ equity		(109,404	)	388,893		1,074,577		275,848		(339,883	)	(1,530,650	)	(580,290	)	(195,316	)
Contract owners’ equity beginning of period		388,893		–		1,403,880		1,128,032		11,433,257		12,963,907		16,951,625		17,146,941
Contract owners’ equity end of period	$	279,489		388,893		2,478,457		1,403,880		11,093,374		11,433,257		16,371,335		16,951,625
CHANGES IN UNITS:
Beginning units		31,690		–		96,608		82,240		531,932		559,802		1,012,300		1,056,188
Units purchased		6,194		32,305		51,214		51,024		124,704		211,849		197,568		244,346
Units redeemed		(17,248	)	(615	)	(22,766	)	(36,656	)	(162,500	)	(239,719	)	(271,974	)	(288,234	)
Ending units		20,636		31,690		125,056		96,608		494,136		531,932		937,894		1,012,300

(Continued)

32

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	GVITIntGro					GVITIntIdx6			GVITIDAgg2				GVITIDCon2
Investment activity:	2006			2005		2006		2005	2006		2005		2006		2005
Net investment income (loss)	$	1,040		706		115		–	35,204		21,630		10,430		12,518
Realized gain (loss) on investments		169,443		38,855		(8	)	–	93,337		91,653		1,388		5,406
Change in unrealized gain (loss) on investments		227,862		69,474		2,298		–	186,054		(4,619	)	7,780		(15,757	)
Reinvested capital gains		1,912		1,588		–		–	33,920		35,342		4,883		13,526
Net increase (decrease) in contract owners’ equity resulting from operations		400,257		110,623		2,405		–	348,515		144,006		24,481		15,693
Equity transactions:
Purchase payments received from contract owners (note 6)		219,677		15,074		258		–	173,028		157,642		22,438		48,316
Transfers between funds		954,881		453,534		14,888		–	830,577		636,636		(67,715	)	(36,184	)
Surrenders (note 6)		(59,366	)	(81,924	)	–		–	(235,406	)	(399,694	)	(202,298	)	(19,258	)
Death benefits (note 4)		(4,036	)	–		–		–	–		–		–		–
Net policy repayments (loans) (note 5)		(10,594	)	(23,764	)	–		–	(49,119	)	145,236		99,499		7,482
Deductions for surrender charges (note 2d)		(128	)	(1,424	)	–		–	(768	)	(2,106	)	(2,180	)	(408	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(38,764	)	(14,910	)	(299	)	–	(97,766	)	(69,670	)	(26,058	)	(28,918	)
Asset charges (note 3):
MSP contracts		(772	)	(229	)	–		–	(175	)	(14	)	(121	)	(265	)
LSFP contracts		(675	)	(28	)	–		–	–		–		(99	)	(109	)
Adjustments to maintain reserves		(4	)	88		31		–	9		21		(5	)	25
Net equity transactions		1,060,219		346,417		14,878		–	620,380		468,051		(176,539	)	(29,319	)
Net change in contract owners’ equity		1,460,476		457,040		17,283		–	968,895		612,057		(152,058	)	(13,626	)
Contract owners’ equity beginning of period		712,763		255,723		–		–	1,923,608		1,311,551		596,311		609,937
Contract owners’ equity end of period	$	2,173,239		712,763		17,283		–	2,892,503		1,923,608		444,253		596,311
CHANGES IN UNITS:
Beginning units		73,566		34,358		–		–	146,078		106,736		52,378		54,920
Units purchased		105,418		64,382		1,612		–	71,709		82,019		8,142		17,854
Units redeemed		(9,876	)	(25,174	)	(30	)	–	(28,879	)	(42,677	)	(23,584	)	(20,396	)
Ending units		169,108		73,566		1,582		–	188,908		146,078		36,936		52,378

(Continued)

33

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	GVITIDMod2					GVITIDModAg2				GVITIDModCon2				GVITMdCpGr
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	124,854		89,651		94,529		66,893		48,089		37,727		(8,447	)	(8,160	)
Realized gain (loss) on investments		215,562		114,999		204,996		178,974		15,365		44,205		78,557		58,185
Change in unrealized gain (loss) on investments		271,956		(43,991	)	406,666		(41,664	)	87,209		(45,321	)	53,734		61,864
Reinvested capital gains		57,432		93,246		71,094		102,524		34,355		40,334		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		669,804		253,905		777,285		306,727		185,018		76,945		123,844		111,889
Equity transactions:
Purchase payments received from contract owners (note 6)		420,655		418,850		395,805		392,234		291,005		208,524		59,057		54,032
Transfers between funds		1,488,410		1,074,126		1,062,660		1,142,442		(50,241	)	565,274		208,658		19,446
Surrenders (note 6)		(199,610	)	(351,472	)	(150,919	)	(206,032	)	(21,949	)	(28,196	)	(127,333	)	(93,482	)
Death benefits (note 4)		(160,250	)	(1,148	)	–		(80,942	)	(25,518	)	(211,024	)	–		–
Net policy repayments (loans) (note 5)		16,702		64,184		(119,817	)	(78,268	)	35,403		1,878		(24,046	)	(10,446	)
Deductions for surrender charges (note 2d)		(478	)	(9,268	)	(2,371	)	(3,466	)	(181	)	(736	)	(4,907	)	(1,892	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(322,494	)	(284,726	)	(342,248	)	(296,694	)	(85,286	)	(81,718	)	(54,942	)	(69,030	)
Asset charges (note 3):
MSP contracts		(8,513	)	(5,493	)	(2,580	)	(1,615	)	(1,221	)	(1,044	)	(444	)	(430	)
LSFP contracts		(823	)	(724	)	(1,570	)	(900	)	–		(17	)	(823	)	(651	)
Adjustments to maintain reserves		41		20		1,237		(102	)	(21	)	20		24		1
Net equity transactions		1,233,640		904,349		840,197		866,657		141,991		452,961		55,244		(102,452	)
Net change in contract owners’ equity		1,903,444		1,158,254		1,617,482		1,173,384		327,009		529,906		179,088		9,437
Contract owners’ equity beginning of period		5,981,356		4,823,102		5,280,968		4,107,584		2,348,240		1,818,334		1,278,234		1,268,797
Contract owners’ equity end of period	$	7,884,800		5,981,356		6,898,450		5,280,968		2,675,249		2,348,240		1,457,322		1,278,234
CHANGES IN UNITS:
Beginning units		484,140		409,194		411,372		340,366		198,412		158,844		210,238		226,164
Units purchased		179,203		170,263		151,964		143,297		106,475		71,917		52,529		74,321
Units redeemed		(87,769	)	(95,317	)	(92,846	)	(72,291	)	(95,875	)	(32,349	)	(42,935	)	(90,247	)
Ending units		575,574		484,140		470,490		411,372		209,012		198,412		219,832		210,238

(Continued)

34

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	GVITMdCpIdx					GVITMyMkt				GVITNWFund				GVITNWLead
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	39,768		24,676		1,072,289		573,998		303,925		148,385		1,873		2,374
Realized gain (loss) on investments		522,315		636,460		–		–		(3,408,067	)	(2,531,902	)	(23,559	)	11,604
Change in unrealized gain (loss) on investments		(36,528	)	(355,770	)	–		–		12,236,368		7,142,405		43,954		(39,955	)
Reinvested capital gains		103,301		415,044		–		–		–		–		39,071		56,438
Net increase (decrease) in contract owners’ equity resulting from operations		628,856		720,410		1,072,289		573,998		9,132,226		4,758,888		61,339		30,461
Equity transactions:
Purchase payments received from contract owners (note 6)		291,169		439,202		3,658,857		3,098,610		5,894,796		6,837,524		28,328		8,860
Transfers between funds		(171,589	)	151,132		4,530,350		7,508,134		(2,621,391	)	(1,605,702	)	118,672		292,428
Surrenders (note 6)		(333,966	)	(950,394	)	(8,338,109	)	(11,194,006	)	(3,779,834	)	(4,096,384	)	(60,657	)	(74,082	)
Death benefits (note 4)		(16,715	)	(876	)	(88,855	)	(356,008	)	(447,645	)	(356,444	)	–		–
Net policy repayments (loans) (note 5)		(107,579	)	82,918		2,882,025		2,290,152		(431,905	)	43,084		(22,229	)	(4,668	)
Deductions for surrender charges (note 2d)		(3,703	)	(8,884	)	(36,231	)	(105,694	)	(49,358	)	(98,438	)	(80	)	(172	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(285,811	)	(278,424	)	(1,781,025	)	(1,879,132	)	(5,064,681	)	(5,265,766	)	(14,705	)	(10,544	)
Asset charges (note 3):
MSP contracts		(5,190	)	(4,804	)	(25,952	)	(24,149	)	(25,693	)	(24,634	)	(496	)	(336	)
LSFP contracts		(3,939	)	(3,397	)	(17,609	)	(18,073	)	(20,923	)	(20,184	)	(5	)	(12	)
Adjustments to maintain reserves		781		(2	)	23,903		15,000		198,038		(40,828	)	(10	)	24
Net equity transactions		(636,542	)	(573,529	)	807,354		(665,166	)	(6,348,596	)	(4,627,772	)	48,818		211,498
Net change in contract owners’ equity		(7,686	)	146,881		1,879,643		(91,168	)	2,783,630		131,116		110,157		241,959
Contract owners’ equity beginning of period		7,218,417		7,071,536		26,583,286		26,674,454		74,977,004		74,845,888		411,250		169,291
Contract owners’ equity end of period	$	7,210,731		7,218,417		28,462,929		26,583,286		77,760,634		74,977,004		521,407		411,250
CHANGES IN UNITS:
Beginning units		491,188		533,950		1,821,092		1,778,058		2,249,770		2,310,270		30,358		13,742
Units purchased		107,211		171,696		648,048		1,071,035		382,150		576,159		13,796		27,437
Units redeemed		(150,761	)	(214,458	)	(613,704	)	(1,028,001	)	(593,234	)	(636,659	)	(10,962	)	(10,821	)
Ending units		447,638		491,188		1,855,436		1,821,092		2,038,686		2,249,770		33,192		30,358

(Continued)

35

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	GVITSmCapGr					GVITSmCapVal				GVITSmComp				GVITTGroFoc
Investment activity:	2006			2005		2006		2005		2006		2005		2006	2005
Net investment income (loss)	$	(8,928	)	(9,083	)	(18,858	)	(84,819	)	(155,927	)	(187,960	)	–	–
Realized gain (loss) on investments		176,700		132,806		680,552		1,337,766		774,570		727,928		–	–
Change in unrealized gain (loss) on investments		(152,111	)	(49,894	)	386,882		(2,634,618	)	2,061,580		(995,207	)	–	–
Reinvested capital gains		–		–		911,820		1,564,872		580,447		3,550,094		–	–
Net increase (decrease) in contract owners’ equity resulting from operations		15,661		73,829		1,960,396		183,201		3,260,670		3,094,855		–	–
Equity transactions:
Purchase payments received from contract owners (note 6)		75,195		64,152		519,804		642,074		1,337,872		1,457,404		–	148
Transfers between funds		258,701		(534,830	)	(2,640,164	)	(647,828	)	(1,170,958	)	270,824		–	(18	)
Surrenders (note 6)		(94,261	)	(96,302	)	(844,018	)	(838,592	)	(1,524,616	)	(1,681,274	)	–	–
Death benefits (note 4)		–		(30	)	(49,644	)	(17,284	)	(123,522	)	(79,856	)	–	–
Net policy repayments (loans) (note 5)		(33,295	)	(57,338	)	(101,082	)	(131,392	)	(473,911	)	(51,224	)	–	(124	)
Deductions for surrender charges (note 2d)		(4,420	)	(1,110	)	(7,012	)	(10,918	)	(14,535	)	(38,284	)	–	–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(64,663	)	(76,020	)	(422,536	)	(512,442	)	(1,229,903	)	(1,257,290	)	–	(8	)
Asset charges (note 3):
MSP contracts		(445	)	(985	)	(6,603	)	(8,307	)	(17,226	)	(15,783	)	–	–
LSFP contracts		(843	)	(1,086	)	(12,656	)	(11,286	)	(16,505	)	(14,861	)	–	–
Adjustments to maintain reserves		23		(6	)	1,302		2,355		1,746		272,757		–	2
Net equity transactions		135,992		(703,555	)	(3,562,609	)	(1,533,620	)	(3,231,558	)	(1,137,587	)	–	–
Net change in contract owners’ equity		151,653		(629,726	)	(1,602,213	)	(1,350,419	)	29,112		1,957,268		–	–
Contract owners’ equity beginning of period		1,261,023		1,890,749		13,633,355		14,983,774		30,178,993		28,221,725		–	–
Contract owners’ equity end of period	$	1,412,676		1,261,023		12,031,142		13,633,355		30,208,105		30,178,993		–	–
CHANGES IN UNITS:
Beginning units		164,700		265,602		680,010		746,406		909,012		925,912		–	–
Units purchased		72,557		49,153		50,594		224,334		236,546		190,821		–	853
Units redeemed		(57,993	)	(150,055	)	(224,200	)	(290,730	)	(322,956	)	(207,721	)	–	(853	)
Ending units		179,264		164,700		506,404		680,010		822,602		909,012		–	–

(Continued)

36

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	GVITUSGro					GVITVKVal				GVITMltSec				JanBal
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(3,065	)	(6,036	)	10,466		7,161		46,560		35,376		3,604		3,290
Realized gain (loss) on investments		6,918		24,938		28,626		33,920		(2,420	)	7,465		3,914		869
Change in unrealized gain (loss) on investments		(24,714	)	(91,765	)	47,073		(30,719	)	2,462		(34,567	)	16,786		11,177
Reinvested capital gains		13,100		161,958		42,502		20,414		2,816		5,570		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		(7,761	)	89,095		128,667		30,776		49,418		13,844		24,304		15,336
Equity transactions:
Purchase payments received from contract owners (note 6)		41,473		20,500		54,382		68,698		53,050		54,556		14,264		6,342
Transfers between funds		(176,078	)	151,248		161,047		234,646		470,478		(55,206	)	27,506		115,096
Surrenders (note 6)		(45,827	)	(124,464	)	(62,690	)	(57,654	)	(90,680	)	(164,012	)	(140	)	(2,538	)
Death benefits (note 4)		(1,780	)	–		(1,841	)	–		–		–		–		–
Net policy repayments (loans) (note 5)		(8,920	)	25,118		(23,247	)	864		9,444		20,336		(6,380	)	(360	)
Deductions for surrender charges (note 2d)		(4,205	)	(1,082	)	(551	)	(270	)	(963	)	(3,366	)	–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(28,676	)	(31,880	)	(43,638	)	(36,178	)	(48,683	)	(47,972	)	(9,207	)	(5,420	)
Asset charges (note 3):
MSP contracts		(182	)	(173	)	(6	)	(17	)	(906	)	(1,034	)	(603	)	(401	)
LSFP contracts		(899	)	(231	)	(829	)	(330	)	(590	)	(634	)	–		–
Adjustments to maintain reserves		63		(236	)	(17	)	44		(53	)	21		19		(2	)
Net equity transactions		(225,031	)	38,800		82,610		209,803		391,097		(197,311	)	25,459		112,717
Net change in contract owners’ equity		(232,792	)	127,895		211,277		240,579		440,515		(183,467	)	49,763		128,053
Contract owners’ equity beginning of period		1,006,777		878,882		813,840		573,261		1,027,643		1,211,110		222,264		94,211
Contract owners’ equity end of period	$	773,985		1,006,777		1,025,117		813,840		1,468,158		1,027,643		272,027		222,264
CHANGES IN UNITS:
Beginning units		65,614		63,712		53,318		38,956		74,450		89,396		17,536		7,980
Units purchased		12,809		26,621		22,592		21,993		45,808		14,376		8,882		10,287
Units redeemed		(27,789	)	(24,719	)	(17,776	)	(7,631	)	(17,878	)	(29,322	)	(6,942	)	(731	)
Ending units		50,634		65,614		58,134		53,318		102,380		74,450		19,476		17,536

(Continued)

37

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	JanForty					JanGlTech				JanRMgCore				JanIntGroS2
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(12,074	)	(16,462	)	(6,855	)	(7,187	)	(955	)	1,573		20,414		–
Realized gain (loss) on investments		216,183		203,945		166,660		96,191		(10,542	)	4,248		(1,079	)	–
Change in unrealized gain (loss) on investments		(7,039	)	86,853		(79,000	)	20,130		19,487		(20,802	)	342,478		–
Reinvested capital gains		–		–		–		–		14,511		41,532		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		197,070		274,336		80,805		109,134		22,501		26,551		361,813		–
Equity transactions:
Purchase payments received from contract owners (note 6)		144,539		183,122		86,368		101,390		16,211		19,358		132,126		–
Transfers between funds		(125,033	)	72,786		(128,569	)	(69,038	)	(66,989	)	145,336		2,436,285		–
Surrenders (note 6)		(250,901	)	(199,394	)	(90,510	)	(25,024	)	(13,972	)	(14,380	)	(45,650	)	–
Death benefits (note 4)		(16,125	)	(4,622	)	(444	)	(3,500	)	–		–		–		–
Net policy repayments (loans) (note 5)		(10,918	)	(54,628	)	402		(15,226	)	1,236		(930	)	45,949		–
Deductions for surrender charges (note 2d)		(1,318	)	(2,784	)	(1,203	)	(342	)	(141	)	(242	)	(848	)	–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(110,682	)	(119,602	)	(56,014	)	(53,312	)	(12,706	)	(12,036	)	(31,532	)	–
Asset charges (note 3):
MSP contracts		(2,054	)	(1,888	)	(668	)	(616	)	(344	)	(90	)	(381	)	–
LSFP contracts		(1,212	)	(1,478	)	(1,094	)	(889	)	–		–		–		–
Adjustments to maintain reserves		208		(42	)	56		18		20		38		127		–
Net equity transactions		(373,496	)	(128,530	)	(191,676	)	(66,539	)	(76,685	)	137,054		2,536,076		–
Net change in contract owners’ equity		(176,426	)	145,806		(110,871	)	42,595		(54,184	)	163,605		2,897,889		–
Contract owners’ equity beginning of period		2,663,806		2,518,000		1,183,574		1,140,979		251,957		88,352		–		–
Contract owners’ equity end of period	$	2,487,380		2,663,806		1,072,703		1,183,574		197,773		251,957		2,897,889		–
CHANGES IN UNITS:
Beginning units		331,492		351,590		296,802		318,846		16,002		6,186		–		–
Units purchased		69,327		76,865		70,064		77,013		4,554		12,211		254,903		–
Units redeemed		(115,513	)	(96,963	)	(117,144	)	(99,057	)	(9,210	)	(2,395	)	(4,765	)	–
Ending units		285,306		331,492		249,722		296,802		11,346		16,002		250,138		–

(Continued)

38

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	JanIntGroS					MFSInvGrStl				MFSValueI				NBAMTBal
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	58,384		9,165		(1,862	)	(889	)	1,237		21		21		109
Realized gain (loss) on investments		987,377		268,467		12,601		7,919		11,064		9,662		3,433		1,738
Change in unrealized gain (loss) on investments		536,030		291,505		10,130		9,290		82,597		4,912		565		637
Reinvested capital gains		–		–		–		–		12,250		5,236		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		1,581,791		569,137		20,869		16,320		107,148		19,831		4,019		2,484
Equity transactions:
Purchase payments received from contract owners (note 6)		233,735		128,112		22,125		27,122		84,841		24,214		3,565		2,420
Transfers between funds		1,317,534		738,664		(20,929	)	54,014		451,701		145,716		(2,596	)	9,052
Surrenders (note 6)		(341,870	)	(100,680	)	(11,057	)	(23,910	)	(30,642	)	(7,942	)	(5,397	)	(15,950	)
Death benefits (note 4)		(188,919	)	(3,574	)	(2,317	)	–		–		–		–		–
Net policy repayments (loans) (note 5)		(103,277	)	(122,300	)	(19,306	)	(2,476	)	(3,840	)	(3,332	)	133		76
Deductions for surrender charges (note 2d)		(2,064	)	(1,488	)	(33	)	(142	)	(264	)	(462	)	–		(350	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(159,849	)	(91,098	)	(16,589	)	(17,532	)	(16,853	)	(10,682	)	(2,476	)	(2,260	)
Asset charges (note 3):
MSP contracts		(1,589	)	(744	)	–		–		(135	)	(56	)	–		–
LSFP contracts		(3,471	)	(1,797	)	(64	)	(42	)	(396	)	(205	)	–		–
Adjustments to maintain reserves		241		32		(32	)	(2	)	5		53		(22	)	45
Net equity transactions		750,471		545,127		(48,202	)	37,032		484,417		147,304		(6,793	)	(6,967	)
Net change in contract owners’ equity		2,332,262		1,114,264		(27,333	)	53,352		591,565		167,135		(2,774	)	(4,483	)
Contract owners’ equity beginning of period		2,896,471		1,782,207		311,844		258,492		349,947		182,812		43,609		48,092
Contract owners’ equity end of period	$	5,228,733		2,896,471		284,511		311,844		941,512		349,947		40,835		43,609
CHANGES IN UNITS:
Beginning units		312,446		255,024		23,984		20,652		23,408		12,970		2,306		2,306
Units purchased		166,137		141,436		3,448		9,922		32,298		12,042		873		848
Units redeemed		(98,075	)	(84,014	)	(6,980	)	(6,590	)	(3,352	)	(1,604	)	(947	)	(848	)
Ending units		380,508		312,446		20,452		23,984		52,354		23,408		2,232		2,306

(Continued)

39

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	NBAMTFasc					NBAMTGro				NBAMTGuard				NBAMTInt
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(548	)	(632	)	(113,010	)	(114,795	)	1,512		(9,613	)	(987	)	(114	)
Realized gain (loss) on investments		8,663		1,761		944,961		829,726		101,526		241,921		70,204		(56	)
Change in unrealized gain (loss) on investments		(5,402	)	1,137		1,330,092		1,131,493		130,653		(74,766	)	(8,136	)	40,524
Reinvested capital gains		2,187		572		–		–		–		–		2,236		3,464
Net increase (decrease) in contract owners’ equity resulting from operations		4,900		2,838		2,162,043		1,846,424		233,691		157,542		63,317		43,818
Equity transactions:
Purchase payments received from contract owners (note 6)		4,812		8,162		1,023,355		1,271,972		78,174		107,446		27,950		2,266
Transfers between funds		(6,498	)	968		(11,964	)	(1,072,358	)	49,637		(338,946	)	(468,151	)	670,592
Surrenders (note 6)		(3,450	)	(364	)	(1,027,708	)	(1,526,768	)	(172,564	)	(46,544	)	(12,520	)	(938	)
Death benefits (note 4)		–		–		(132,006	)	(121,564	)	(16,775	)	(850	)	–		–
Net policy repayments (loans) (note 5)		(18,866	)	114		(155,030	)	55,140		(17,230	)	(55,134	)	7,843		–
Deductions for surrender charges (note 2d)		–		(12	)	(13,235	)	(27,324	)	(1,096	)	(1,098	)	–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(7,671	)	(8,144	)	(961,623	)	(969,830	)	(77,522	)	(90,028	)	(7,484	)	(1,652	)
Asset charges (note 3):
MSP contracts		(27	)	(60	)	(3,240	)	(2,851	)	(1,127	)	(1,502	)	(132	)	(64	)
LSFP contracts		(27	)	(18	)	(7,445	)	(6,410	)	(1,333	)	(1,668	)	(305	)	(19	)
Adjustments to maintain reserves		(15	)	55		93,964		(20,500	)	36		2		105		33
Net equity transactions		(31,742	)	701		(1,194,932	)	(2,420,493	)	(159,800	)	(428,322	)	(452,694	)	670,218
Net change in contract owners’ equity		(26,842	)	3,539		967,111		(574,069	)	73,891		(270,780	)	(389,377	)	714,036
Contract owners’ equity beginning of period		118,661		115,122		16,670,990		17,245,059		1,960,277		2,231,057		714,036		–
Contract owners’ equity end of period	$	91,819		118,661		17,638,101		16,670,990		2,034,168		1,960,277		324,659		714,036
CHANGES IN UNITS:
Beginning units		8,286		8,244		754,106		730,188		157,638		193,216		61,076		–
Units purchased		1,826		3,059		151,002		361,914		23,931		27,210		14,675		61,230
Units redeemed		(3,962	)	(3,017	)	(204,818	)	(337,996	)	(35,849	)	(62,788	)	(53,187	)	(154	)
Ending units		6,150		8,286		700,290		754,106		145,720		157,638		22,564		61,076

(Continued)

40

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	NBAMTLMat					NBAMTMCGrS				NBAMTPart				NBAMTRegS
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	97,569		89,799		(3,800	)	(1,542	)	35,690		95,725		80		(171	)
Realized gain (loss) on investments		(50,801	)	(78,403	)	71,600		47,042		1,168,643		935,379		3,920		109
Change in unrealized gain (loss) on investments		91,438		21,009		(7,589	)	2,625		(1,230,740	)	2,841,210		(1,287	)	3,213
Reinvested capital gains		–		–		–		–		2,986,619		5,916		9,918		–
Net increase (decrease) in contract owners’ equity resulting from operations		138,206		32,405		60,211		48,125		2,960,212		3,878,230		12,631		3,151
Equity transactions:
Purchase payments received from contract owners (note 6)		154,573		225,792		28,300		23,360		1,479,060		1,593,968		13,499		4,370
Transfers between funds		(59,355	)	(836,846	)	208,831		(31,402	)	(1,708,268	)	2,194,314		65,765		80,522
Surrenders (note 6)		(357,449	)	(798,462	)	(3,137	)	(12,588	)	(1,116,320	)	(1,285,982	)	(5,026	)	(46	)
Death benefits (note 4)		(36,090	)	(40	)	(257	)	–		(147,455	)	(90,206	)	–		–
Net policy repayments (loans) (note 5)		103,738		60,978		(5,183	)	252		(105,429	)	(134,670	)	1,289		(62	)
Deductions for surrender charges (note 2d)		(1,997	)	(27,730	)	–		–		(22,631	)	(28,382	)	(86	)	–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(152,278	)	(173,380	)	(25,823	)	(12,258	)	(1,175,888	)	(1,203,698	)	(4,020	)	(696	)
Asset charges (note 3):
MSP contracts		(5,450	)	(5,400	)	(2	)	(55	)	(15,017	)	(14,116	)	–		–
LSFP contracts		(1,518	)	(1,717	)	(102	)	(392	)	(25,482	)	(22,397	)	(538	)	(17	)
Adjustments to maintain reserves		4,038		(406	)	14		(5	)	889		11,046		42		29
Net equity transactions		(351,788	)	(1,557,211	)	202,641		(33,088	)	(2,836,541	)	1,019,877		70,925		84,100
Net change in contract owners’ equity		(213,582	)	(1,524,806	)	262,852		15,037		123,671		4,898,107		83,556		87,251
Contract owners’ equity beginning of period		3,988,869		5,513,675		265,898		250,861		27,342,963		22,444,856		87,251		–
Contract owners’ equity end of period	$	3,775,287		3,988,869		528,750		265,898		27,466,634		27,342,963		170,807		87,251
CHANGES IN UNITS:
Beginning units		235,258		304,988		16,656		17,720		918,584		842,520		7,502		–
Units purchased		49,327		86,624		18,384		5,934		150,485		253,312		6,499		7,574
Units redeemed		(68,647	)	(156,354	)	(5,902	)	(6,998	)	(232,217	)	(177,248	)	(713	)	(72	)
Ending units		215,938		235,258		29,138		16,656		836,852		918,584		13,288		7,502

(Continued)

41

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	NBAMTSocRes					OppGlSec3				OppBal				OppCapAp
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(1,336	)	(1,548	)	9,497		(7,511	)	205,776		153,996		(30,793	)	29,698
Realized gain (loss) on investments		6,609		22,056		91,819		12,271		41,678		58,011		894,643		824,220
Change in unrealized gain (loss) on investments		34,903		(11,609	)	528,285		286,506		486,525		(289,228	)	(18,989	)	(343,491	)
Reinvested capital gains		3,663		344		213,406		–		650,195		525,540		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		43,839		9,243		843,007		291,266		1,384,174		448,319		844,861		510,427
Equity transactions:
Purchase payments received from contract owners (note 6)		60,778		13,606		1,677,980		1,150,944		636,886		814,120		691,678		873,822
Transfers between funds		152,802		8,030		1,648,556		1,553,416		(841,229	)	(1,510,072	)	(1,498,356	)	(1,112,944	)
Surrenders (note 6)		(16,680	)	(93,274	)	(440,872	)	(199,424	)	(781,266	)	(708,646	)	(1,100,399	)	(911,922	)
Death benefits (note 4)		–		–		(6,803	)	(6,350	)	(122,860	)	(61,648	)	(857	)	(7,502	)
Net policy repayments (loans) (note 5)		17,583		(10,538	)	309,643		255,630		(27,076	)	(24,094	)	(111,248	)	(8,372	)
Deductions for surrender charges (note 2d)		–		–		(2,417	)	(906	)	(6,059	)	(18,606	)	(16,789	)	(24,374	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(11,535	)	(7,764	)	(257,243	)	(68,940	)	(616,833	)	(669,256	)	(570,516	)	(653,916	)
Asset charges (note 3):
MSP contracts		(81	)	(64	)	(2,048	)	(860	)	(9,176	)	(9,239	)	(4,501	)	(4,960	)
LSFP contracts		(170	)	(18	)	(1,984	)	(396	)	(3,632	)	(3,920	)	(6,059	)	(6,231	)
Adjustments to maintain reserves		34		22		10		275		13,967		(7,348	)	928		(338	)
Net equity transactions		202,731		(90,000	)	2,924,822		2,683,389		(1,757,278	)	(2,198,709	)	(2,616,119	)	(1,856,737	)
Net change in contract owners’ equity		246,570		(80,757	)	3,767,829		2,974,655		(373,104	)	(1,750,390	)	(1,771,258	)	(1,346,310	)
Contract owners’ equity beginning of period		183,707		264,464		2,974,655		–		14,108,225		15,858,615		12,930,525		14,276,835
Contract owners’ equity end of period	$	430,277		183,707		6,742,484		2,974,655		13,735,121		14,108,225		11,159,267		12,930,525
CHANGES IN UNITS:
Beginning units		12,464		19,112		247,696		–		523,202		515,596		846,284		916,154
Units purchased		16,093		6,113		285,602		264,357		76,165		235,916		110,061		248,511
Units redeemed		(2,751	)	(12,761	)	(53,478	)	(16,661	)	(120,735	)	(228,310	)	(283,819	)	(318,381	)
Ending units		25,806		12,464		479,820		247,696		478,632		523,202		672,526		846,284

(Continued)

42

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	OppBdFd					OppGlSec				OppHighInc				OppMSt
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	517,980		555,683		142,602		135,727		40,309		40,432		11,780		9,719
Realized gain (loss) on investments		(61,428	)	5,790		2,094,212		1,456,861		(5,076	)	6,196		72,433		73,904
Change in unrealized gain (loss) on investments		59,204		(330,503	)	1,394,466		2,816,700		17,994		(35,276	)	185,311		(4,654	)
Reinvested capital gains		–		–		1,920,739		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		515,756		230,970		5,552,019		4,409,288		53,227		11,352		269,524		78,969
Equity transactions:
Purchase payments received from contract owners (note 6)		625,793		765,224		44,188		655,236		35,573		45,286		95,216		104,358
Transfers between funds		86,471		(349,990	)	(1,513,966	)	(1,906,256	)	113,167		(30,540	)	392,275		439,782
Surrenders (note 6)		(459,829	)	(1,329,182	)	(2,151,334	)	(2,043,212	)	(66,566	)	(91,762	)	(44,398	)	(219,672	)
Death benefits (note 4)		(29,886	)	(8,662	)	(211,952	)	(12,008	)	–		–		(79,297	)	–
Net policy repayments (loans) (note 5)		(35,645	)	116,484		(704,823	)	(596,226	)	(22,757	)	(22,672	)	(73,454	)	(44,696	)
Deductions for surrender charges (note 2d)		(8,577	)	(14,108	)	(20,300	)	(33,896	)	(439	)	(2,040	)	(148	)	(2,496	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(492,130	)	(540,300	)	(1,210,228	)	(1,407,740	)	(22,996	)	(23,802	)	(79,006	)	(69,568	)
Asset charges (note 3):
MSP contracts		(7,449	)	(8,128	)	(14,159	)	(13,732	)	(717	)	(732	)	(2,757	)	(1,063	)
LSFP contracts		(6,411	)	(6,051	)	(12,028	)	(11,136	)	(398	)	(308	)	(1,103	)	(1,048	)
Adjustments to maintain reserves		9,216		(1,476	)	2,798		1,779		(64	)	44		98		(71	)
Net equity transactions		(318,447	)	(1,376,189	)	(5,791,804	)	(5,367,191	)	34,803		(126,526	)	207,426		205,526
Net change in contract owners’ equity		197,309		(1,145,219	)	(239,785	)	(957,903	)	88,030		(115,174	)	476,950		284,495
Contract owners’ equity beginning of period		11,253,929		12,399,148		36,093,540		37,051,443		576,195		691,369		1,928,995		1,644,500
Contract owners’ equity end of period	$	11,451,238		11,253,929		35,853,755		36,093,540		664,225		576,195		2,405,945		1,928,995
CHANGES IN UNITS:
Beginning units		494,198		538,742		1,029,012		1,094,866		46,888		57,270		205,266		185,346
Units purchased		156,167		123,487		158,662		280,077		12,764		12,996		87,812		85,392
Units redeemed		(173,079	)	(168,031	)	(285,042	)	(345,931	)	(10,044	)	(23,378	)	(70,350	)	(65,472	)
Ending units		477,286		494,198		902,632		1,029,012		49,608		46,888		222,728		205,266

(Continued)

43

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	OppMStSCap					OppMidCap				PVTGroIncIB				PVTIntEqIB
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(4,855	)	(4,033	)	(12,067	)	(14,677	)	707		874		(684	)	772
Realized gain (loss) on investments		102,276		27,197		125,208		265,782		9,397		4,234		29,844		18,426
Change in unrealized gain (loss) on investments		(29,831	)	16,728		(71,606	)	(73,853	)	6,494		(87	)	37,078		9,869
Reinvested capital gains		25,550		13,920		–		–		2,275		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		93,140		53,812		41,535		177,252		18,873		5,021		66,238		29,067
Equity transactions:
Purchase payments received from contract owners (note 6)		90,956		47,892		128,202		147,500		5,428		4,690		30,702		7,090
Transfers between funds		398,737		112,184		(251,389	)	(274,800	)	30,462		51,834		(23,641	)	171,922
Surrenders (note 6)		(31,182	)	(21,312	)	(153,575	)	(174,922	)	(35,269	)	(22,422	)	(10,603	)	(11,238	)
Death benefits (note 4)		–		–		(12,151	)	(8,766	)	–		–		–		–
Net policy repayments (loans) (note 5)		(11,558	)	(6,416	)	918		(10,654	)	(2,775	)	(2	)	(1,039	)	(1,574	)
Deductions for surrender charges (note 2d)		(787	)	(216	)	(1,752	)	(3,076	)	(411	)	(778	)	–		(26	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(38,278	)	(24,324	)	(107,289	)	(120,362	)	(12,309	)	(5,558	)	(11,802	)	(7,460	)
Asset charges (note 3):
MSP contracts		(128	)	(142	)	(483	)	(721	)	–		–		(10	)	(63	)
LSFP contracts		(225	)	(53	)	(420	)	(576	)	(114	)	(111	)	(26	)	(4	)
Adjustments to maintain reserves		3		57		317		(158	)	(29	)	34		28		(8	)
Net equity transactions		407,538		107,670		(397,622	)	(446,535	)	(15,017	)	27,687		(16,391	)	158,639
Net change in contract owners’ equity		500,678		161,482		(356,087	)	(269,283	)	3,856		32,708		49,847		187,706
Contract owners’ equity beginning of period		632,350		470,868		1,934,946		2,204,229		111,982		79,274		320,613		132,907
Contract owners’ equity end of period	$	1,133,028		632,350		1,578,859		1,934,946		115,838		111,982		370,460		320,613
CHANGES IN UNITS:
Beginning units		35,404		28,790		308,834		390,550		7,844		5,796		19,614		9,052
Units purchased		29,626		9,829		57,133		62,529		4,968		4,153		8,618		11,550
Units redeemed		(9,698	)	(3,215	)	(120,149	)	(144,245	)	(5,778	)	(2,105	)	(10,424	)	(988	)
Ending units		55,332		35,404		245,818		308,834		7,034		7,844		17,808		19,614

(Continued)

44

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	PVTVoyIB					TRoeBlChip2				TRowEqInc2				TRowLtdTBd2
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(251	)	182		(770	)	(6	)	6,599		1,414		1,528		164
Realized gain (loss) on investments		3,324		795		7,612		168		1,102		2,420		(54	)	(1	)
Change in unrealized gain (loss) on investments		1,141		3,168		23,688		1,009		82,943		(9,434	)	312		(62	)
Reinvested capital gains		–		–		–		–		30,539		12,064		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		4,214		4,145		30,530		1,171		121,183		6,464		1,786		101
Equity transactions:
Purchase payments received from contract owners (note 6)		2,383		3,564		18,007		1,292		94,354		12,674		1,316		98
Transfers between funds		(27,059	)	52,596		136,078		242,994		789,443		311,286		26,415		34,504
Surrenders (note 6)		–		(2,990	)	(54,370	)	–		(3,239	)	–		(514	)	–
Death benefits (note 4)		–		–		–		–		–		–		–		–
Net policy repayments (loans) (note 5)		(482	)	(34	)	121		–		(5,594	)	46		(97	)	(10	)
Deductions for surrender charges (note 2d)		–		–		–		–		(183	)	–		–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(4,925	)	(3,374	)	(15,811	)	(3,320	)	(31,449	)	(5,266	)	(1,420	)	(178	)
Asset charges (note 3):
MSP contracts		(196	)	(190	)	(256	)	(42	)	(49	)	–		–		–
LSFP contracts		(100	)	(108	)	(111	)	(50	)	(333	)	(133	)	–		–
Adjustments to maintain reserves		10		–		13		44		58		54		(21	)	32
Net equity transactions		(30,369	)	49,464		83,671		240,918		843,008		318,661		25,679		34,446
Net change in contract owners’ equity		(26,155	)	53,609		114,201		242,089		964,191		325,125		27,465		34,547
Contract owners’ equity beginning of period		107,118		53,509		242,089		–		325,125		–		34,547		–
Contract owners’ equity end of period	$	80,963		107,118		356,290		242,089		1,289,316		325,125		62,012		34,547
CHANGES IN UNITS:
Beginning units		8,234		4,322		21,492		–		30,698		–		3,428		–
Units purchased		391		4,455		21,990		21,801		77,295		31,225		2,763		3,446
Units redeemed		(2,709	)	(543	)	(14,420	)	(309	)	(4,871	)	(527	)	(231	)	(18	)
Ending units		5,916		8,234		29,062		21,492		103,122		30,698		5,960		3,428

(Continued)

45

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	VEWrldBd					VEWrldEMkt				VEWrldHAs				VKCorPlus
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	230,704		234,470		1,284		5,720		(65,291	)	(33,271	)	11,934		7,542
Realized gain (loss) on investments		(64,415	)	(27,287	)	1,637,462		696,415		2,448,894		1,358,582		(4,884	)	(442	)
Change in unrealized gain (loss) on investments		(4,075	)	(346,641	)	639,534		1,334,255		(885,664	)	1,986,081		277		246
Reinvested capital gains		–		–		939,523		–		642,387		–		1,911		1,912
Net increase (decrease) in contract owners’ equity resulting from operations		162,214		(139,458	)	3,217,803		2,036,390		2,140,326		3,311,392		9,238		9,258
Equity transactions:
Purchase payments received from contract owners (note 6)		150,914		149,562		468,520		353,284		932,089		621,334		8,687		5,030
Transfers between funds		(71,300	)	(374,642	)	(72,994	)	1,107,540		(496,466	)	1,387,764		51,665		168,874
Surrenders (note 6)		(505,868	)	(215,630	)	(645,512	)	(376,808	)	(1,134,179	)	(991,560	)	(84,046	)	(8,026	)
Death benefits (note 4)		(1,420	)	(11,218	)	(289,173	)	(7,398	)	(164,468	)	(39,474	)	–		–
Net policy repayments (loans) (note 5)		139,390		(9,374	)	(765	)	(48,756	)	(189,311	)	(33,512	)	8,821		(1,000	)
Deductions for surrender charges (note 2d)		(2,160	)	(2,308	)	(5,179	)	(11,754	)	(4,653	)	(10,622	)	(328	)	(44	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(133,845	)	(153,478	)	(326,146	)	(282,468	)	(406,102	)	(345,372	)	(16,071	)	(12,346	)
Asset charges (note 3):
MSP contracts		(1,176	)	(1,329	)	(4,313	)	(3,275	)	(6,868	)	(5,608	)	(79	)	(64	)
LSFP contracts		(454	)	(596	)	(7,724	)	(6,149	)	(3,074	)	(1,890	)	(61	)	–
Adjustments to maintain reserves		2,192		(745	)	513		(653	)	(11,966	)	7,525		36		(28	)
Net equity transactions		(423,727	)	(619,758	)	(882,773	)	723,563		(1,484,998	)	588,585		(31,376	)	152,396
Net change in contract owners’ equity		(261,513	)	(759,216	)	2,335,030		2,759,953		655,328		3,899,977		(22,138	)	161,654
Contract owners’ equity beginning of period		3,105,984		3,865,200		8,950,268		6,190,315		10,455,104		6,555,127		363,898		202,244
Contract owners’ equity end of period	$	2,844,471		3,105,984		11,285,298		8,950,268		11,110,432		10,455,104		341,760		363,898
CHANGES IN UNITS:
Beginning units		167,104		186,970		562,354		517,510		347,218		302,712		33,292		19,166
Units purchased		24,635		77,210		98,786		173,072		56,622		153,010		10,102		16,131
Units redeemed		(47,305	)	(97,076	)	(152,612	)	(128,228	)	(99,378	)	(108,504	)	(13,110	)	(2,005	)
Ending units		144,434		167,104		508,528		562,354		304,462		347,218		30,284		33,292

(Continued)

46

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	VKEmMkt					VKUSRealEst				WFAVTDisc				WFAVTOpp
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	183,241		176,187		100,766		99,923		(50,456	)	(54,490	)	(215,703	)	(239,912	)
Realized gain (loss) on investments		48,041		34,234		1,979,110		1,909,179		369,770		289,653		55		(490,049	)
Change in unrealized gain (loss) on investments		(46,208	)	24,829		3,692,843		366,974		714,074		(437,422	)	263,654		3,022,828
Reinvested capital gains		42,664		40,480		1,496,337		519,092		–		715,214		3,582,720		–
Net increase (decrease) in contract owners’ equity resulting from operations		227,738		275,730		7,269,056		2,895,168		1,033,388		512,955		3,630,726		2,292,867
Equity transactions:
Purchase payments received from contract owners (note 6)		95,715		345,778		915,299		950,232		374,181		396,298		1,611,457		1,963,664
Transfers between funds		(232,754	)	(22,574	)	987,861		(651,482	)	(33,725	)	(689,072	)	(1,406,170	)	(2,083,948	)
Surrenders (note 6)		(142,002	)	(139,664	)	(1,291,997	)	(1,252,896	)	(628,573	)	(425,832	)	(1,992,977	)	(2,472,238	)
Death benefits (note 4)		(9,746	)	–		(99,378	)	(32,252	)	(8,451	)	(30,356	)	(113,092	)	(185,056	)
Net policy repayments (loans) (note 5)		(14,640	)	(9,176	)	(165,156	)	26,554		(29,981	)	61,912		(27,911	)	(300,760	)
Deductions for surrender charges (note 2d)		(1,416	)	(1,984	)	(16,388	)	(21,224	)	(1,140	)	(6,028	)	(13,532	)	(28,846	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(97,504	)	(101,168	)	(830,874	)	(779,820	)	(322,344	)	(335,386	)	(1,464,476	)	(1,573,710	)
Asset charges (note 3):
MSP contracts		(1,080	)	(1,143	)	(9,590	)	(8,279	)	(2,219	)	(1,928	)	(7,783	)	(8,121	)
LSFP contracts		(4,327	)	(4,366	)	(10,154	)	(8,725	)	(870	)	(840	)	(7,925	)	(8,407	)
Adjustments to maintain reserves		253		11		317		(9,658	)	970		5,691		3,144		582
Net equity transactions		(407,501	)	65,714		(520,060	)	(1,787,550	)	(652,152	)	(1,025,541	)	(3,419,265	)	(4,696,840	)
Net change in contract owners’ equity		(179,763	)	341,444		6,748,996		1,107,618		381,236		(512,586	)	211,461		(2,403,973	)
Contract owners’ equity beginning of period		2,661,649		2,320,205		20,119,546		19,011,928		7,796,130		8,308,716		33,571,537		35,975,510
Contract owners’ equity end of period	$	2,481,886		2,661,649		26,868,542		20,119,546		8,177,366		7,796,130		33,782,998		33,571,537
CHANGES IN UNITS:
Beginning units		143,840		140,706		482,116		498,620		263,596		284,110		831,198		802,158
Units purchased		31,041		35,963		107,910		146,492		68,246		87,076		146,683		332,641
Units redeemed		(54,087	)	(32,829	)	(116,918	)	(162,996	)	(91,224	)	(107,590	)	(231,685	)	(303,601	)
Ending units		120,794		143,840		473,108		482,116		240,618		263,596		746,196		831,198

See accompanying notes to financial statements.

47

NATIONWIDE VLI SEPARATE ACCOUNT-2

NOTES TO FINANCIAL STATEMENTS

December 31, 2006 and 2005

(1) Background and Summary of Significant Accounting Policies

(a) Organization and Nature of Operations

The Nationwide VLI Separate Account-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:

Portfolios of the AIM Variable Insurance Funds;

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

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

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

Portfolios of the AllianceBernstein Variable Products Series Fund Inc.;

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

Class A (AlVPGrIncA)

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

Class A (AlVPSmMdCpA)

Portfolios of the American Century Variable Portfolios Inc.;

American Century Variable Portfolios Inc. – Balanced Fund – Class I (ACVPBal)

American Century Variable Portfolios Inc. – Capital Appreciation Fund – Class I (ACVPCapAp)

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

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

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

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

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

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

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

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

Portfolios of the Credit Suisse Trust;

Credit Suisse Trust – Global Small Cap Portfolio (CSTGlSmCp)

Credit Suisse Trust – International Focus Portfolio (CSTIntFoc)

Credit Suisse Trust – Small Cap Growth Portfolio (CSTSmCapGr)

Portfolios of the Dreyfus Investment Portfolios;

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

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

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

Portfolios of the Dreyfus Variable Investment Fund;

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

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

Dreyfus Variable Investment Fund – Growth and Income Portfolio – Initial Shares (DryVIGrInc)

(Continued)

48

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

Portfolios of the Federated Insurance Series;

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

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

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

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

Portfolios of the Fidelity^® Variable Insurance Products Fund;

    Fidelity^® Variable Insurance Products Fund – Equity-Income Portfolio – Initial Class (FidVIPEI)

    Fidelity^® Variable Insurance Products Fund – Growth Portfolio – Initial Class (FidVIPGr)

    Fidelity^® Variable Insurance Products Fund – High Income Portfolio – Initial Class (FidVIPHI)

    Fidelity^® Variable Insurance Products Fund – Overseas Portfolio – Initial Class (FidVIPOv)

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

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

    Fidelity^® Variable Insurance Products Fund II – Asset Manager Portfolio – Initial Class (FidVIPAM)

    Fidelity^® Variable Insurance Products Fund II – Contrafund^® Portfolio – Initial Class (FidVIPCon)

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

        Service Class (FidVIPIGBdS)

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

    Fidelity^® Variable Insurance Products Fund III – Growth Opportunities Portfolio –

        Initial Class (FidVIPGrOp)

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

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

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

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

        (formerly Fidelity^® Variable Insurance Products Fund IV – Natural Resources Portfolio – Service Class 2)

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

        Service Class (FidVIPFree10S)

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

        Service Class (FidVIPFree20S)

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

        Service Class (FidVIPFree30S)

Portfolios of the Franklin Templeton Variable Insurance Products Trust;

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

        Class 2 (FrVIPIncSec2)

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

        Class 1 (FrVIPRisDiv)

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

        Class 1 (FrVIPSmCapV1)

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

        Class 3 (FrVIPDevMrk3)

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

        Class 1 (FrVIPForSec)

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

        Class 3 (FrVIPForSec3)

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

        Class 3 (FrVIPGlInc3)

Portfolios of the Gartmore Variable Insurance Trust (GVIT);

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

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

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

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

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

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

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

(Continued)

49

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

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

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

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

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

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

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

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

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

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

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

    Gartmore GVIT – Growth Fund – Class I (GVITGrowth)

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

    Gartmore GVIT – International Index Fund – Class VI (GVITIntIdx6)

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

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

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

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

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

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

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

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

    Gartmore GVIT – Nationwide Fund – Class I (GVITNWFund)

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

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

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

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

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

    Gartmore GVIT – Van Kampen GGVIT Comstock Value Fund – Class I (GVITVKVal)

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

Portfolios of the Janus Aspen Series;

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

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

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

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

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

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

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

Portfolios of the MFS Variable Insurance Trust;

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

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

Portfolios of the Neuberger Berman Advisers Management Trust;

    Neuberger Berman Advisers Management Trust – Balanced Portfolio^® – I Class Shares (NBAMTBal)

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

    Neuberger Berman Advisers Management Trust – Growth Portfolio – Class I (NBAMTGro)

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

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

    Neuberger Berman Advisers Management Trust – Limited Maturity Bond Portfolio –

        Class I (NBAMTLMat)

    Neuberger Berman Advisers Management Trust – Mid Cap Growth Portfolio –

        S Class Shares (NBAMTMCGrS)

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

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

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

(Continued)

50

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

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

Portfolios of the Oppenheimer Variable Account Funds;

    Oppenheimer Variable Account Funds – Oppenheimer Balanced Fund/VA –

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

        Oppenheimer Balanced Fund/VA – Initial Class)

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

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

        Oppenheimer Capital Appreciation Fund/VA – Initial Class)

    Oppenheimer Variable Account Funds – Oppenheimer Core Bond Fund/VA –

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

        Oppenheimer Bond Fund/VA – Initial Class)

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

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

        Oppenheimer Global Securities Fund/VA – Initial Class)

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

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

        Oppenheimer High Income Fund/VA – Initial Class)

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

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

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

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

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

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

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

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

        Oppenheimer Aggressive Growth Fund/VA – Initial Class)

Portfolios of the Putnam Variable Trust;

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

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

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

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

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

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

Portfolios of the Van Eck Worldwide Insurance Trust;

    Van Eck Worldwide Insurance Trust – Worldwide Bond Fund – Initial Class (VEWrldBd)

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

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

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

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

        Class I (VKCorPlus)

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

        Class I (VKEmMkt)

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

        Class I (VKUSRealEst)

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

    Wells Fargo Advantage Variable Trust Funds^SM –

        Wells Fargo Advantage VT Discovery Fund^SM (WFAVTDisc)

Wells Fargo Advantage Variable Trust Funds^SM –

        Wells Fargo Advantage VT Opportunity Fund^SM (WFAVTOpp)

(Continued)

51

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

At December 31, 2006, contract owners were invested in all of the above funds, except for those indicated with an asterisk(*). The contract owners’ equity is affected by the investment results of each fund, equity transactions by contract owners and certain contract expenses (see notes 2 and 3). The accompanying financial statements include only contract owners’ purchase payments pertaining to the variable portions of their contracts and exclude any purchase payments for fixed dollar benefits, the latter being included in the accounts of the Company.

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

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

(c) Security Valuation, Transactions and Related Investment Income

Investments in underlying mutual funds are valued on the closing net asset value per share at December 31, 2006 of such funds, which value their investment securities at fair value. Fund purchases and sales are accounted for on the trade date (date the order to buy or sell is executed). The cost of investments sold is determined on a First in – First out basis, and dividends (which include capital gain distributions) are accrued as of the ex-dividend date and are reinvested in the underlying mutual funds.

(d) Federal Income Taxes

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

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

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

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

(f) New Accounting Pronouncement

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

(Continued)

52

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

(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, 2006 and 2005, total front-end sales charge deductions were $3,219,241 and $3,591,203, 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).

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.

(Continued)

53

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

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.

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.

(Continued)

54

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

The following table provides mortality, expense and administration charges by contract type for the period ended December 31, 2006:

	Total		AIMBValue	AIMCapAp	AIMCapDev	AlVPGrIncA
Single Premium contracts issued prior to April 16,1990	$	755,551	–	–	–	–
Single Premium contracts issued on or after April 16, 1990		6,714	–	–	–	–
Multiple Payment and Flexible Premium contracts		5,247,520	5,333	556	2,227	4,996
Total	$	6,009,785	5,333	556	2,227	4,996
	AlVPSmMdCpA		ACVPBal	ACVPCapAp	ACVPIncGr	ACVPInfPro2
Single Premium contracts issued prior to April 16,1900	$	–	6,523	14,494	2,879	–
Single Premium contracts issued on or after April 16, 1900		–	–	260	–	–
Multiple Payment and Flexible Premium contracts		6,492	27,390	81,357	18,754	5,337
Total	$	6,492	33,913	96,111	21,633	5,337
	ACVPInt		ACVPInt3	ACVPMdCpV	ACVPUltra	ACVPVal
Single Premium contracts issued prior to April 16,1990	$	7,553	–	–	206	15,253
Single Premium contracts issued on or after April 16, 1900		15	–	–	–	–
Multiple Payment and Flexible Premium contracts		57,303	11,439	1,547	2,979	66,948
Total	$	64,871	11,439	1,547	3,185	82,201
	ACVPVista		CSTGlSmCp	CSTIntFoc	CSTSmCapGr	DryIPSmCap
Single Premium contracts issued prior to April 16,1900	$	–	648	5,733	6,791	3,345
Single Premium contracts issued on or after April 16, 1900		–	–	–	75	34
Multiple Payment and Flexible Premium contracts		260	5,376	40,355	71,306	8,709
Total	$	260	6,024	46,088	78,172	12,088
	DrySRGro		DryStkIx	DryVIApp	DryVIFDevLd	DryVIFGrInc
Single Premium contracts issued prior to April 16,1900	$	1,655	44,228	10,762	–	2,674
Single Premium contracts issued on or after April 16, 1900		–	190	–	–	–
Multiple Payment and Flexible Premium contracts		56,813	420,006	28,234	2,515	10,724
Total	$	58,468	464,424	38,996	2,515	13,398
	FedAmLead		FedCapAp	FedQualBd	FidVIPEI	FidVIPGr
Single Premium contracts issued prior to April 16,1900	$	–	–	2,938	74,564	61,317
Single Premium contracts issued on or after April 16, 1900		–	–	–	761	697
Multiple Payment and Flexible Premium contracts		1,066	161	5,753	404,428	474,287
Total	$	1,066	161	8,691	479,753	536,301

(Continued)

55

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

	FidVIPHI		FidVIPOv	FidVIPOvSR	FidVIPAM	FidVIPCon
Single Premium contracts issued prior to April 16, 1900	$	18,890	20,977	–	31,610	52,633
Single Premium contracts issued on or after April 16, 1900		264	330	–	186	–
Multiple Payment and Flexible Premium contracts		98,990	80,785	23,968	102,214	396,053
Total	$	118,144	102,092	23,968	134,010	448,686
	FidVIPIGBdS		FidVIPGrOp	FidVIPMCapS	FidVIPVaIS	FidVIPEnergyS2
Single Premium contracts issued prior to April 16, 1900	$	–	896	–	1,930	–
Single Premium contracts issued on or after April 16, 1900		–	63	–	–	–
Multiple Payment and Flexible Premium contracts		17,556	24,342	55,242	5,683	19,848
Total	$	17,556	25,301	55,242	7,613	19,848
	FidVIPFree10S		FidVIPFree20S	FidVIPFree30S	FrVIPIncSec2	FrVIPRisDiv
Single Premium contracts issued prior to April 16, 1900	$	–	–	–	–	–
Single Premium contracts issued on or after April 16, 1900		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		509	1,764	563	389	22,630
Total	$	509	1,764	563	389	22,630
	FrVIPSmCapV1		FrVIPDevMrk3	FrVIPForSec	FrVIPForSec3	FrVIPGlInc3
Single Premium contracts issued prior to April 16, 1900	$	–	–	–	–	–
Single Premium contracts issued on or after April 16, 1900		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		21,096	6,747	6,968	5,032	1,164
Total	$	21,096	6,747	6,968	5,032	1,164
	GVITAstAll2		GVITBnd2	GVITGlobGr2	GVITGrowth2	GVITIntValI
Single Premium contracts issued prior to April 16, 1900	$	–	–	–	–	–
Single Premium contracts issued on or after April 16, 1900		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		464	711	705	983	5,798
Total	$	464	711	705	983	5,798
	GVITIntVal3		GVITEmMrkts	GVITEmMrkts3	GVITFHiInc	GVITFHiInc3
Single Premium contracts issued prior to April 16, 1900	$	–	6,330	–	–	–
Single Premium contracts issued on or after April 16, 1900		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		7,425	10,247	13,757	1,444	1,486
Total	$	7,425	16,577	13,757	1,444	1,486
	GVITGlFin		GVITGlHlth	GVITGlHlth3	GVITGlTech	GVITGlTech3
Single Premium contracts issued prior to April 16, 1900	$	1,009	2,422	–	707	–
Single Premium contracts issued on or after April 16, 1900		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		4,632	1,995	3,035	2,742	2,004
Total	$	5,641	4,417	3,035	3,449	2,004

(Continued)

56

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

	GVITGlUtl		GVITGvtBd	GVITGrowth	GVITIntGro	GVITIntIdx6
Single Premium contracts issued prior to April 16, 1900	$	3,228	20,238	3,457	3,314	–
Single Premium contracts issued on or after April 16, 1900		3	175	–	–	–
Multiple Payment and Flexible Premium contracts		7,500	51,731	106,949	5,982	52
Total	$	10,731	72,144	110,406	9,296	52
	GVITIDAgg2		GVITIDCon2	GVITIDMod2	GVITIDModAg2	GVITIDModCon2
Single Premium contracts issued prior to April 16, 1900	$	20	626	6,096	3,389	11,821
Single Premium contracts issued on or after April 16, 1900		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		15,269	2,977	32,884	35,627	10,981
Total	$	15,289	3,603	38,980	39,016	22,802
	GVITMdCpGr		GVITMdCpIdx	GVITMyMkt	GVITNWFund	GVITNWLead
Single Premium contracts issued prior to April 16, 1900	$	1,545	7,343	58,160	17,799	342
Single Premium contracts issued on or after April 16, 1900		–	10	678	128	–
Multiple Payment and Flexible Premium contracts		6,902	35,599	114,922	488,325	2,368
Total	$	8,447	42,952	173,760	506,252	2,710
	GVITSmCapGr		GVITSmCapVal	GVITSmComp	GVITUSGro	GVITVKVal
Single Premium contracts issued prior to April 16, 1900	$	1,525	13,933	7,832	1,717	–
Single Premium contracts issued on or after April 16, 1900		19	187	129	–	–
Multiple Payment and Flexible Premium contracts		7,384	58,348	180,683	3,488	5,176
Total	$	8,928	72,468	188,644	5,205	5,176
	GVITMltSec		JanBal	JanForty	JanGlTech	JanRMgCore
Single Premium contracts issued prior to April 16, 1900	$	1,450	–	810	719	–
Single Premium contracts issued on or after April 16, 1900		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		5,916	1,265	14,800	6,136	1,172
Total	$	7,366	1,265	15,610	6,855	1,172
	JanIntGroS2		JanIntGroS	MFSInvGrStl	MFSValueI	NBAMTBal
Single Premium contracts issued prior to April 16, 1900	$	–	10,739	–	–	–
Single Premium contracts issued on or after April 16, 1900		–	452	–	–	–
Multiple Payment and Flexible Premium contracts		4,404	20,047	1,862	3,097	293
Total	$	4,404	31,238	1,862	3,097	293
	NBAMTFasc		NBAMTGro	NBAMTGuard	NBAMTInt	NBAMTLMat
Single Premium contracts issued prior to April 16, 1900	$	–	13,999	536	–	6,907
Single Premium contracts issued on or after April 16, 1900		–	440	–	–	93
Multiple Payment and Flexible Premium contracts		548	98,571	10,839	1,594	16,359
Total	$	548	113,010	11,375	1,594	23,359

(Continued)

57

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

	NBAMTMCGrS		NBAMTPart	NBAMTRegS	NBAMTSocRes	OppGlSec3
Single Premium contracts issued prior to April 16, 1900	$	–	14,473	–	–	–
Single Premium contracts issued on or after April 16, 1900		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		3,800	143,746	635	1,852	31,267
Total	$	3,800	158,219	635	1,852	31,267
	OppBal		OppCapAp	OppBdFd	OppGlSec	OppHighInc
Single Premium contracts issued prior to April 16, 1900	$	18,778	8,311	6,510	25,606	–
Single Premium contracts issued on or after April 16, 1900		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		71,217	67,182	61,620	199,502	3,152
Total	$	89,995	75,493	68,130	225,108	3,152
	OppMSt		OppMStSCap	OppMidCap	PVTGroIncIB	PVTIntEqIB
Single Premium contracts issued prior to April 16, 1900	$	1,297	–	1,319	–	–
Single Premium contracts issued on or after April 16, 1900		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		9,198	6,149	10,748	754	1,911
Total	$	10,495	6,149	12,067	754	1,911
	PVTVoyIB		TRoeBlChip2	TRowEqInc2	TRowLtdTBd2	VEWrldBd
Single Premium contracts issued prior to April 16, 1900	$	–	–	–	–	6,236
Single Premium contracts issued on or after April 16, 1900		–	–	–	–	111
Multiple Payment and Flexible Premium contracts		366	1,427	3,731	372	13,683
Total	$	366	1,427	3,731	372	20,030
	VEWrldEMkt		VEWrldHAs	VKCorPlus	VKEmMkt	VKUSRealEst
Single Premium contracts issued prior to April 16, 1900	$	8,079	20,734	–	999	20,645
Single Premium contracts issued on or after April 16, 1900		846	344	–	109	–
Multiple Payment and Flexible Premium contracts		49,465	51,762	2,445	12,046	127,826
Total	$	58,390	72,840	2,445	13,154	148,471
	WFAVTDisc		WFAVTOpp
Single Premium contracts issued prior to April 16, 1900	$	4,265	21,787
Single Premium contracts issued on or after April 16, 1900		–	115
Multiple Payment and Flexible Premium contracts		46,191	193,801
Total	$	50,456	215,703

(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)

58

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, 2006 and 2005, total transfers into the Account from the fixed account were $25,634,866 and $24,517,955, respectively, and total transfers from the Account to the fixed account were $30,150,545 and $27,229,398, respectively.

(Continued)

59

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 universal life 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, 2006.

	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 Variable Insurance Funds – AIM V.I. Basic Value Fund – Series I
2006	0.00%	1,192	$	17.373346	$	20,709	0.55%	13.20%
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 Variable Insurance Funds – AIM V.I. Capital Appreciation Fund – Series I
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 Variable Insurance Funds – AIM V.I. Capital Development Fund – Series I Shares
2006	0.00%	2,070		19.189430		39,722	0.00%	16.52%
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
AllianceBernstein Variable Products Series Fund, Inc. – Growth and Income Portfolio – Class A
2006	0.00%	19,406		17.056580		331,000	1.47%	17.29%
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
AllianceBernstein Variable Products Series Fund, Inc. – Small-Mid Cap Value Portfolio – Class A
2006	0.00%	2,614		20.134859		52,633	0.39%	14.42%
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 Variable Portfolios, Inc. – Balanced Fund – Class I
2006	0.00%	29,950		20.663955		618,885	1.93%	9.62%
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%
American Century Variable Portfolios, Inc. – Capital Appreciation Fund – Class I
2006	0.00%	58,212		16.275964		947,456	0.00%	17.22%
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%
American Century Variable Portfolios, Inc. – Income & Growth Fund – Class I
2006	0.00%	28,052		15.243369		427,607	1.88%	17.09%
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%
American Century Variable Portfolios, Inc. – Inflation Protection Fund – Class II
2006	0.00%	14,560		11.270913		164,104	3.22%	1.59%
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 Variable Portfolios, Inc. – International Fund – Class I
2006	0.00%	42,276		23.665218		1,000,471	1.65%	25.03%
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%

(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***
American Century Variable Portfolios, Inc. – International Fund – Class III
2006	0.00%	20,366	$	14.595156	$	297,245	1.19%	25.03	%
2005	0.00%	20,404		11.673757		238,191	0.00%	16.74	%	05/02/05
American Century Variable Portfolios, Inc. – Mid Cap Value Fund – Class I
2006	0.00%	5,932		13.620466		80,797	1.31%	20.30	%
2005	0.00%	956		11.322176		10,824	1.06%	13.22	%	05/02/05
American Century Variable Portfolios, Inc. – Ultra® Fund – Class I
2006	0.00%	9,430		10.980437		103,546	0.00%	-3.28	%
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
American Century Variable Portfolios, Inc. – Value Fund – Class I
2006	0.00%	72,824		28.448790		2,071,755	1.39%	18.65	%
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	%
Credit Suisse Trust – Global Small Cap Portfolio
2006	0.00%	11,692		17.507392		204,696	0.00%	13.20	%
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	%
Credit Suisse Trust – International Focus Portfolio
2006	0.00%	90,002		15.408829		1,386,825	1.03%	18.65	%
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	%
Credit Suisse Trust – Small Cap Growth Portfolio
2006	0.00%	104,538		14.297420		1,494,624	0.00%	4.77	%
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	%
Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio – Service Shares
2006	0.00%	29,498		15.813075		466,454	0.36%	14.41	%
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 Socially Responsible Growth Fund, Inc. – Initial Shares, The
2006	0.00%	35,276		17.910706		631,818	0.11%	9.20	%
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	%
Dreyfus Stock Index Fund, Inc. – Initial Shares
2006	0.00%	481,242		25.025241		12,043,197	1.65%	15.50	%
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	%
Dreyfus Variable Investment Fund – Appreciation Portfolio – Initial Shares
2006	0.00%	57,100		17.281782		986,790	1.49%	16.48	%
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	%

(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***
Dreyfus Variable Investment Fund – Developing Leaders Portfolio – Initial Shares
2006	0.00%	3,288	$	15.770049	$	51,852	0.43%	3.77	%
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
Dreyfus Variable Investment Fund – Growth and Income Portfolio – Initial Shares
2006	0.00%	38,470		16.523102		635,644	0.77%	14.51	%
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	%
Federated Insurance Series – Federated American Leaders Fund II – Primary Shares
2006	0.00%	406		16.967010		6,889	1.47%	16.81	%
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 Insurance Series – Federated Quality Bond Fund II – Primary Shares
2006	0.00%	19,464		12.335785		240,104	3.43%	4.15	%
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® Variable Insurance Products Fund – Equity-Income Portfolio – Initial Class
2006	0.00%	307,480		25.970609		7,985,443	3.30%	20.19	%
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	%
Fidelity® Variable Insurance Products Fund – Growth Portfolio – Initial Class
2006	0.00%	294,384		19.671592		5,791,002	0.40%	6.85	%
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	%
Fidelity® Variable Insurance Products Fund – High Income Portfolio – Initial Class
2006	0.00%	171,428		14.872903		2,549,632	7.80%	11.24	%
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	%
Fidelity® Variable Insurance Products Fund – Overseas Portfolio – Initial Class
2006	0.00%	89,902		22.280924		2,003,100	0.91%	18.08	%
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	%
Fidelity® Variable Insurance Products Fund – Overseas Portfolio – Service Class R
2006	0.00%	31,164		14.743687		459,472	0.77%	17.95	%
2005	0.00%	21,148		12.499996		264,350	0.00%	25.00	%	05/02/05
Fidelity® Variable Insurance Products Fund II – Asset Manager Portfolio – Initial Class
2006	0.00%	66,348		19.859153		1,317,615	2.71%	7.32	%
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	%
Fidelity® Variable Insurance Products Fund II – Contrafund® Portfolio – Initial Class
2006	0.00%	244,798		32.470034		7,948,599	1.27%	11.72	%
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	%

(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***
Fidelity® Variable Insurance Products Fund II – Investment Grade Bond Portfolio – Service Class
2006	0.00%	27,706	$	11.348586	$	314,424	3.27%	4.30	%
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® Variable Insurance Products Fund III – Growth Opportunities Portfolio – Initial Class
2006	0.00%	47,470		12.672871		601,581	0.69%	5.46	%
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	%
Fidelity® Variable Insurance Products Fund III – Mid Cap Portfolio – Service Class
2006	0.00%	29,260		23.389128		684,366	0.25%	12.59	%
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® Variable Insurance Products Fund III – Value Strategies Portfolio – Service Class
2006	0.00%	14,632		16.095011		235,502	0.41%	16.20	%
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® Variable Insurance Products Fund IV – Energy Portfolio – Service Class 2
2006	0.00%	28,390		15.759845		447,422	0.73%	16.62	%
2005	0.00%	11,834		13.514321		159,928	0.65%	35.14	%	05/02/05
Fidelity® Variable Insurance Products Fund IV – Freedom Fund 2010 Portfolio – Service Class
2006	0.00%	8,244		11.863160		97,800	3.42%	9.78	%
2005	0.00%	2,002		10.806063		21,634	0.56%	8.06	%	05/02/05
Fidelity® Variable Insurance Products Fund IV – Freedom Fund 2020 Portfolio – Service Class
2006	0.00%	7,022		12.431698		87,295	1.69%	11.81	%
2005	0.00%	5,140		11.118664		57,150	0.86%	11.19	%	05/02/05
Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Fund – Class 2
2006	0.00%	7,444		11.216304		83,494	0.00%	12.16	%	05/01/06
Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund – Class 1
2006	0.00%	23,316		16.669002		388,654	1.22%	17.43	%
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 Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund – Class 1
2006	0.00%	9,688		21.190555		205,294	0.82%	17.30	%
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 Variable Insurance Products Trust – Templeton Developing Markets Securities Fund – Class 3
2006	0.00%	13,590		16.410826		223,023	1.19%	28.17	%
2005	0.00%	14,152		12.804274		181,206	0.53%	28.04	%	05/02/05
Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund – Class 1
2006	0.00%	6,940		21.206570		147,174	1.41%	21.70	%
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 Variable Insurance Products Trust – Templeton Foreign Securities Fund – Class 3
2006	0.00%	28,060		13.711150		384,735	1.38%	21.46	%
2005	0.00%	21,384		11.288544		241,394	0.39%	12.89	%	05/02/05
Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund – Class 3
2006	0.00%	1,668		11.150160		18,598	2.45%	12.84	%
2005	0.00%	1,034		9.881172		10,217	7.95%	-1.19	%	05/02/05
Gartmore GVIT – American Funds GVIT Asset Allocation Fund – Class II
2006	0.00%	9,828		10.556998		103,754	3.56%	5.57	%	05/01/06

(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***
Gartmore GVIT – American Funds GVIT Global Growth Fund – Class II
2006	0.00%	2,236	$	10.842096	$	24,243	0.07%	8.42	%	05/01/06
Gartmore GVIT – American Funds GVIT Growth Fund – Class II
2006	0.00%	288		10.364424		2,985	1.29%	3.64	%	05/01/06
Gartmore GVIT – Dreyfus GGVIT International Value Fund – Class I
2006	0.00%	2,190		23.062454		50,507	2.08%	22.67	%
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 GGVIT International Value Fund – Class III
2006	0.00%	10,116		14.056822		142,199	2.01%	22.75	%
2005	0.00%	6,630		11.451970		75,927	0.95%	14.52	%	05/02/05
Gartmore GVIT – Emerging Markets Fund – Class I
2006	0.00%	5,092		25.339713		129,030	0.72%	36.72	%
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	%
Gartmore GVIT – Emerging Markets Fund – Class III
2006	0.00%	26,004		18.224168		473,901	0.78%	36.64	%
2005	0.00%	17,390		13.336908		231,929	0.19%	33.37	%	05/02/05
Gartmore GVIT – Federated GGVIT High Income Bond Fund – Class I
2006	0.00%	6,018		13.861826		83,420	7.10%	10.60	%
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 – Federated GGVIT High Income Bond Fund – Class III
2006	0.00%	4,016		11.657910		46,818	7.03%	10.60	%
2005	0.00%	1,936		10.540776		20,407	6.33%	5.41	%	05/02/05
Gartmore GVIT – Global Financial Services Fund – Class I
2006	0.00%	1,856		19.830405		36,805	1.89%	20.32	%
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
Gartmore GVIT – Global Health Sciences Fund – Class I
2006	0.00%	4,354		13.695316		59,629	0.00%	2.71	%
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 Health Sciences Fund – Class III
2006	0.00%	3,408		11.032385		37,598	0.00%	2.70	%
2005	0.00%	230		10.742057		2,471	0.00%	7.42	%	05/02/05
Gartmore GVIT – Global Technology and Communications Fund – Class I
2006	0.00%	11,308		3.531877		39,938	0.00%	11.17	%
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	%
Gartmore GVIT – Global Technology and Communications Fund – Class III
2006	0.00%	172		13.682536		2,353	0.00%	11.08	%
2005	0.00%	2,428		12.317458		29,907	0.00%	23.17	%	05/02/05
Gartmore GVIT – Global Utilities Fund – Class I
2006	0.00%	10,732		20.489395		219,892	2.82%	37.56	%
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

(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***
Gartmore GVIT – Government Bond Fund – Class I
2006	0.00%	95,134	$	18.753954	$	1,784,139	4.11%	3.34	%
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	%
Gartmore GVIT – Growth Fund: Class I
2006	0.00%	118,580		12.928125		1,533,017	0.05%	6.17	%
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	%
Gartmore GVIT – International Growth Fund – Class I
2006	0.00%	15,102		13.430598		202,829	0.78%	32.96	%
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 – Investor Destinations Aggressive Fund – Class II
2006	0.00%	1,756		15.802084		27,748	2.11%	16.87	%
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 – Investor Destinations Conservative Fund – Class II
2006	0.00%	3,274		12.447546		40,753	2.89%	6.16	%
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 – Investor Destinations Moderate Fund – Class II
2006	0.00%	90,888		14.099052		1,281,435	2.50%	11.35	%
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 – Investor Destinations Moderately Aggressive Fund – Class II
2006	0.00%	47,128		15.125018		712,812	2.27%	14.54	%
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
Gartmore GVIT – Investor Destinations Moderately Conservative Fund – Class II
2006	0.00%	13,888		13.308971		184,835	2.76%	8.42	%
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
Gartmore GVIT – Mid Cap Growth Fund – Class I
2006	0.00%	19,038		6.975264		132,795	0.00%	9.91	%
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	%
Gartmore GVIT – Mid Cap Index Fund – Class I
2006	0.00%	58,484		16.876236		986,990	1.13%	9.89	%
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	%

(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***
Gartmore GVIT – Money Market Fund – Class I
2006	0.00%	307,156	$	14.538752	$	4,465,665	4.49%	4.53	%
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	%
Gartmore GVIT – Nationwide® Fund – Class I
2006	0.00%	247,594		22.796000		5,644,153	1.08%	13.63	%
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	%
Gartmore GVIT – Nationwide® Leaders Fund – Class I
2006	0.00%	4,904		16.116355		79,035	0.97%	16.05	%
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
2006	0.00%	23,198		8.204136		190,320	0.00%	3.21	%
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	%
Gartmore GVIT – Small Cap Value Fund – Class I
2006	0.00%	98,728		25.419000		2,509,567	0.43%	17.29	%
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	%
Gartmore GVIT – Small Company Fund – Class I
2006	0.00%	127,382		31.871050		4,059,798	0.11%	12.04	%
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	%
Gartmore GVIT – Turner GVIT 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
2006	0.00%	9,376		15.705651		147,256	0.25%	-0.29	%
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 GGVIT Comstock Value Fund: Class I
2006	0.00%	7,610		17.990877		136,911	1.74%	15.91	%
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 – Van Kampen GVIT Multi-Sector Bond Fund – Class I
2006	0.00%	10,602		14.995990		158,987	4.42%	4.84	%
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	%
Janus Aspen Series – Balanced Portfolio – Service Shares
2006	0.00%	4,932		14.199918		70,034	1.96%	10.41	%
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	%

(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***
Janus Aspen Series – Forty Portfolio – Service Shares
2006	0.00	%	29,426	$	9.082400	$	267,259	0.14	%	9.12	%
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	%
Janus Aspen Series – Global Technology Portfolio – Service Shares
2006	0.00	%	47,252		4.447186		210,138	0.00	%	7.83	%
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	%
Janus Aspen Series – INTECH Risk-Managed Core Portfolio – Service Shares
2006	0.00	%	2,146		17.753498		38,099	0.10	%	10.77	%
2005	0.00	%	1,406		16.027544		22,535	1.43	%	10.91	%
Janus Aspen Series – International Growth Portfolio – Service II Shares
2006	0.00	%	26,134		11.629148		303,916	1.97	%	16.29	%	05/01/06
Janus Aspen Series – International Growth Portfolio – Service Shares
2006	0.00	%	53,060		13.963792		740,919	1.92	%	46.63	%
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	%
MFS® Variable Insurance Trust – Investors Growth Stock Series – Initial Class
2006	0.00	%	804		14.233850		11,444	0.00	%	7.58	%
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® Variable Insurance Trust – Value Series – Initial Class
2006	0.00	%	6,766		18.360218		124,225	0.80	%	20.84	%
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 Advisers Management Trust – Fasciano Portfolio – Class S
2006	0.00	%	34		15.276302		519	0.00	%	5.25	%
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 Advisers Management Trust – Growth Portfolio® – Class I
2006	0.00	%	77,208		18.584451		1,434,868	0.00	%	14.07	%
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	%
Neuberger Berman Advisers Management Trust – Guardian Portfolio – I Class Shares
2006	0.00	%	20,178		14.786128		298,354	0.67	%	13.38	%
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	%
Neuberger Berman Advisers Management Trust – International Portfolio – Class S
2006	0.00	%	5,640		14.506093		81,814	0.00	%	23.45	%
2005	0.00	%	2,516		11.750261		29,564	0.22	%	17.50	%	05/02/05
Neuberger Berman Advisers Management Trust – Limited Maturity Bond Portfolio – Class I
2006	0.00	%	50,648		15.817282		801,114	3.06	%	4.20	%
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	%

(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***
Neuberger Berman Advisers Management Trust – 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
Neuberger Berman Advisers Management Trust – Partners Portfolio® – Class I
2006	0.00	%	188,418		26.640503		5,019,550	0.71	%	12.24	%
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	%
Neuberger Berman Advisers Management Trust – Regency Portfolio – Class S
2006	0.00	%	4,738		12.937253		61,297	0.44	%	10.94	%
2005	0.00	%	2,786		11.661977		32,490	0.00	%	16.62	%	05/02/05
Neuberger Berman Advisers Management Trust – Socially Responsive Portfolio® – Class I
2006	0.00	%	1,732		17.031699		29,499	0.17	%	13.70	%
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
Oppenheimer Global Securities Fund/VA – Class 3
2006	0.00	%	44,318		14.192798		628,996	0.80	%	17.69	%
2005	0.00	%	28,160		12.059670		339,600	0.00	%	20.60	%	05/02/05
Oppenheimer Variable Account Funds – Oppenheimer Balanced Fund/VA – Non-Service Shares
2006	0.00	%	64,490		23.674314		1,526,757	2.13	%	11.15	%
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	%
Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA – Non-Service Shares
2006	0.00	%	68,276		18.677035		1,275,193	0.38	%	7.95	%
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	%
Oppenheimer Variable Account Funds – Oppenheimer Core Bond Fund/VA – Non-Service Shares
2006	0.00	%	87,354		18.563148		1,621,565	5.20	%	5.28	%
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	%
Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA – Non-Service Shares
2006	0.00	%	80,632		39.581622		3,191,545	1.04	%	17.69	%
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	%
Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA – Non-Service Shares
2006	0.00	%	9,746		13.641009		132,945	6.97	%	9.42	%
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 Variable Account Funds – Oppenheimer Main Street Fund ®/VA – Non-Service Shares
2006	0.00	%	40,880		11.168617		456,573	1.11	%	15.02	%
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	%
Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA – Non-Service Shares
2006	0.00	%	2,530		20.937110		52,971	0.14	%	15.00	%
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

(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***
Oppenheimer Variable Account Funds – Oppenheimer Mid Cap Fund/VA – Non-Service Shares
2006	0.00%	16,826	$	6.755577	$	113,669	0.00%	2.96	%
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	%
Putnam Variable Trust – Putnam VT Growth and 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 Variable Trust – Putnam VT International Equity Fund – IB Shares
2006	0.00%	232		21.310423		4,944	0.44%	27.72	%
2005	0.00%	178		16.685441		2,970	1.11%	12.20	%
Putnam Variable Trust – Putnam VT Voyager II Fund – IB Shares
2006	0.00%	2,660		13.874456		36,906	0.13%	5.44	%
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 Variable Insurance Funds, Inc. – Strong International Stock Fund II
2002	0.00%	57,275		5.361165		307,061	4.04%	-26.54	%
T. Rowe Price Blue Chip Growth Portfolio – II
2006	0.00%	3,280		12.370493		40,575	0.24%	9.33	%
2005	0.00%	2,948		11.314946		33,356	0.29%	13.15	%	05/02/05
T. Rowe Price Equity Income Portfolio – II
2006	0.00%	8,360		12.620348		105,506	1.59%	18.65	%
2005	0.00%	3,790		10.636871		40,314	1.20%	6.37	%	05/02/05
Van Eck Worldwide Insurance Trust – Worldwide Bond Fund – Initial Class
2006	0.00%	10,512		17.528628		184,261	8.51%	6.48	%
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	%
Van Eck Worldwide Insurance Trust – Worldwide Emerging Markets Fund – Initial Class
2006	0.00%	71,040		23.287309		1,654,330	0.60%	39.49	%
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	%
Van Eck Worldwide Insurance Trust – Worldwide Hard Assets Fund – Initial Class
2006	0.00%	42,234		27.189640		1,148,327	0.07%	24.49	%
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	%
Van Kampen – The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio – Class I
2006	0.00%	1,480		11.546094		17,088	3.94%	3.73	%
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 – The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio – Class I
2006	0.00%	34,466		21.443912		739,086	7.72%	10.81	%
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	%
Van Kampen – The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio – Class I
2006	0.00%	45,458		59.991892		2,727,111	1.08%	38.04	%
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	%

(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***
Wells Fargo Advantage Variable Trust FundsSM – Wells Fargo Advantage VT Discovery FundSM
2006	0.00%	14,944	$	23.762009	$	355,099	0.00%	14.64	%
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	%
Wells Fargo Advantage Variable Trust FundsSM – Wells Fargo Advantage VT Opportunity FundSM
2006	0.00%	63,616		30.477301		1,938,844	0.00%	12.22	%
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	%
Single Premium contracts issued prior to April 16, 1990 (policy years 11 and thereafter)
AIM Variable Insurance Funds – AIM V.I. Basic Value Fund – Series I
2006	0.50%	55,976		17.058177		954,849	0.55%	12.64	%
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 Variable Insurance Funds – AIM V.I. Capital Appreciation Fund – Series I
2006	0.50%	2,876		15.011307		43,173	0.04%	5.77	%
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 Variable Insurance Funds – AIM V.I. Capital Development Fund – Series I Shares
2006	0.50%	11,446		18.841359		215,658	0.00%	15.94	%
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	%
AllianceBernstein Variable Products Series Fund, Inc. – Growth and Income Portfolio – Class A
2006	0.50%	15,978		16.747221		267,587	1.47%	16.70	%
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
AllianceBernstein Variable Products Series Fund, Inc. – Small-Mid Cap Value Portfolio – Class A
2006	0.50%	36,812		19.769734		727,763	0.39%	13.85	%
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 Variable Portfolios, Inc. – Balanced Fund – Class I
2006	0.50%	58,648		26.008605		1,525,353	1.93%	9.07	%
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 Variable Portfolios, Inc. – Capital Appreciation Fund – Class I
2006	0.50%	148,624		40.621668		6,037,355	0.00%	16.64	%
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	%
American Century Variable Portfolios, Inc. – Income & Growth Fund – Class I
2006	0.50%	110,050		14.597227		1,606,425	1.88%	16.50	%
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 Variable Portfolios, Inc. – Inflation Protection Fund – Class II
2006	0.50%	25,006		11.065707		276,709	3.22%	1.08	%
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	%

(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***
American Century Variable Portfolios, Inc. – International Fund – Class I
2006	0.50%	181,244	$	24.623712	$	4,462,900	1.65%	24.40	%
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 Variable Portfolios, Inc. – International Fund – Class III
2006	0.50%	52,054		14.474561		753,459	1.19%	24.40	%
2005	0.50%	43,276		11.635157		503,523	0.00%	16.35	%	05/02/05
American Century Variable Portfolios, Inc. – Mid Cap Value Fund – Class I
2006	0.50%	28,362		13.507944		383,112	1.31%	19.70	%
2005	0.50%	2,498		11.284751		28,189	1.06%	12.85	%	05/02/05
American Century Variable Portfolios, Inc. – Ultra® Fund – Class I
2006	0.50%	21,516		10.727394		230,811	0.00%	-3.76	%
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	%
American Century Variable Portfolios, Inc. – Value Fund – Class I
2006	0.50%	213,238		26.911603		5,738,576	1.39%	18.06	%
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 Variable Portfolios, Inc. – VistaSM Fund – Class I
2006	0.50%	1,972		12.392995		24,439	0.00%	8.47	%
2005	0.50%	242		11.425723		2,765	0.00%	14.26	%	05/02/05
Credit Suisse Trust – Global Small Cap Portfolio
2006	0.50%	16,544		16.560881		273,983	0.00%	12.64	%
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
2006	0.50%	169,282		17.072863		2,890,128	1.03%	18.06	%
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
2006	0.50%	219,292		19.337639		4,240,590	0.00%	4.25	%
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 Investment Portfolios – Small Cap Stock Index Portfolio – Service Shares
2006	0.50%	46,836		15.448774		723,559	0.36%	13.84	%
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 Socially Responsible Growth Fund, Inc. – Initial Shares, The
2006	0.50%	88,854		26.125145		2,321,324	0.11%	8.66	%
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	%

(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***
Dreyfus Stock Index Fund, Inc. – Initial Shares
2006	0.50	%	710,704	$	34.429253	$	24,469,008	1.65	%	14.92	%
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	%
Dreyfus Variable Investment Fund – Appreciation Portfolio – Initial Shares
2006	0.50	%	100,824		16.434584		1,657,000	1.49	%	15.90	%
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 Variable Investment Fund – Developing Leaders Portfolio – Initial Shares
2006	0.50	%	9,442		15.484023		146,200	0.43	%	3.25	%
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 Variable Investment Fund – Growth and Income Portfolio – Initial Shares
2006	0.50	%	10,806		15.630140		168,899	0.77	%	13.94	%
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 Insurance Series – Federated American Leaders Fund II – Primary Shares
2006	0.50	%	10,000		16.659331		166,593	1.47	%	16.23	%
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	%
Federated Insurance Series – Federated 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 Insurance Series – Federated Quality Bond Fund II – Primary Shares
2006	0.50	%	24,568		12.051517		296,082	3.43	%	3.64	%
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® Variable Insurance Products Fund – Equity-Income Portfolio – Initial Class
2006	0.50	%	491,100		67.988158		33,388,984	3.30	%	19.60	%
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	%
Fidelity® Variable Insurance Products Fund – Growth Portfolio – Initial Class
2006	0.50	%	528,784		61.254324		32,390,306	0.40	%	6.32	%
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	%
Fidelity® Variable Insurance Products Fund – High Income Portfolio – Initial Class
2006	0.50	%	261,306		31.824106		8,315,830	7.80	%	10.68	%
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	%
Fidelity® Variable Insurance Products Fund – Overseas Portfolio – Initial Class
2006	0.50	%	218,334		38.837994		8,479,655	0.91	%	17.49	%
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	%
Fidelity® Variable Insurance Products Fund – Overseas Portfolio – Service Class R
2006	0.50	%	201,906		14.621895		2,952,248	0.77	%	17.36	%
2005	0.50	%	108,508		12.458682		1,351,867	0.00	%	24.59	%	05/02/05

(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***
Fidelity® Variable Insurance Products Fund II – Asset Manager Portfolio – Initial Class
2006	0.50	%	286,878	$	34.991020	$	10,038,154	2.71	%	6.78	%
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	%
Fidelity® Variable Insurance Products Fund II – Contrafund® Portfolio – Initial Class
2006	0.50	%	755,746		36.392149		27,503,221	1.27	%	11.16	%
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® Variable Insurance Products Fund II – Investment Grade Bond Portfolio – Service Class
2006	0.50	%	224,730		11.142647		2,504,087	3.27	%	3.78	%
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® Variable Insurance Products Fund III – Growth Opportunities Portfolio – Initial Class
2006	0.50	%	47,778		12.051402		575,792	0.69	%	4.93	%
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	%
Fidelity® Variable Insurance Products Fund III – Mid Cap Portfolio – Service Class
2006	0.50	%	217,404		22.965001		4,992,683	0.25	%	12.03	%
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
Fidelity® Variable Insurance Products Fund III – Value Strategies Portfolio – Service Class
2006	0.50	%	50,330		15.724226		791,400	0.41	%	15.62	%
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® Variable Insurance Products Fund IV – Energy Portfolio – Service Class 2
2006	0.50	%	115,990		15.629664		1,812,885	0.73	%	16.04	%
2005	0.50	%	42,914		13.469693		578,038	0.65	%	34.70	%	05/02/05
Fidelity® Variable Insurance Products Fund IV – Freedom Fund 2010 Portfolio – Service Class
2006	0.50	%	1,822		11.765134		21,436	3.42	%	9.24	%
2005	0.50	%	1,590		10.770315		17,125	0.56	%	7.70	%	05/02/05
Fidelity® Variable Insurance Products Fund IV – Freedom Fund 2020 Portfolio – Service Class
2006	0.50	%	6,200		12.328971		76,440	1.69	%	11.25	%
2005	0.50	%	3,540		11.081899		39,230	0.86	%	10.82	%	05/02/05
Fidelity® Variable Insurance Products Fund IV – Freedom Fund 2030 Portfolio – Service Class
2006	0.50	%	17,674		12.713976		224,707	5.31	%	12.59	%
Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Fund – Class 2
2006	0.50	%	8,720		11.179202		97,483	0.00	%	11.79	%	05/01/06
Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund – Class 1
2006	0.50	%	137,920		16.366662		2,257,290	1.22	%	16.84	%
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 Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund – Class 1
2006	0.50	%	98,784		20.806303		2,055,330	0.82	%	16.72	%
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 Variable Insurance Products Trust – Templeton Developing Markets Securities Fund – Class 3
2006	0.50	%	47,562		16.275260		774,084	1.19	%	27.53	%
2005	0.50	%	17,310		12.761961		220,910	0.53	%	27.62	%	05/02/05

(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***
Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund – Class 1
2006	0.50	%	26,826	$	20.821962	$	558,570	1.41	%	21.09	%
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 Variable Insurance Products Trust – Templeton Foreign Securities Fund – Class 3
2006	0.50	%	54,682		13.597883		743,559	1.38	%	20.86	%
2005	0.50	%	21,078		11.251218		237,153	0.39	%	12.51	%	05/02/05
Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund – Class 3
2006	0.50	%	14,172		11.057995		156,714	2.45	%	12.28	%
2005	0.50	%	2,394		9.848458		23,577	7.95	%	-1.52	%	05/02/05
Gartmore GVIT – American Funds GVIT Asset Allocation Fund – Class II
2006	0.50	%	2,762		10.522054		29,062	3.56	%	5.22	%	05/01/06
Gartmore GVIT – American Funds GVIT Bond Fund – Class II
2006	0.50	%	22,766		10.504005		239,134	0.05	%	5.04	%	05/01/06
Gartmore GVIT – American Funds GVIT Global Growth Fund – Class II
2006	0.50	%	64,864		10.806217		700,934	0.07	%	8.06	%	05/01/06
Gartmore GVIT – American Funds GVIT Growth Fund – Class II
2006	0.50	%	44,756		10.330117		462,335	1.29	%	3.30	%	05/01/06
Gartmore GVIT – Dreyfus GGVIT International Value Fund – Class I
2006	0.50	%	22,408		22.644248		507,412	2.08	%	22.06	%
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 GGVIT International Value Fund – Class III
2006	0.50	%	98,312		13.940694		1,370,538	2.01	%	22.14	%
2005	0.50	%	44,904		11.414099		512,539	0.95	%	14.14	%	05/02/05
Gartmore GVIT – Emerging Markets Fund – Class I
2006	0.50	%	36,644		24.561198		900,021	0.72	%	36.04	%
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 – Emerging Markets Fund – Class III
2006	0.50	%	59,452		18.073662		1,074,515	0.78	%	35.97	%
2005	0.50	%	42,298		13.292850		562,261	0.19	%	32.93	%	05/02/05
Gartmore GVIT – Federated GGVIT High Income Bond Fund – Class I
2006	0.50	%	4,224		13.610399		57,490	7.10	%	10.05	%
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 – Federated GGVIT High Income Bond Fund – Class III
2006	0.50	%	13,398		11.561576		154,902	7.03	%	10.05	%
2005	0.50	%	4,790		10.505908		50,323	6.33	%	5.06	%	05/02/05
Gartmore GVIT – Global Financial Services Fund – Class I
2006	0.50	%	19,458		19.373628		376,972	1.89	%	19.72	%
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
2006	0.50	%	7,120		13.379661		95,263	0.00	%	2.20	%
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 Health Sciences Fund – Class III
2006	0.50	%	19,322		10.941189		211,406	0.00	%	2.19	%
2005	0.50	%	20,616		10.706525		220,726	0.00	%	7.07	%	05/02/05

(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***
Gartmore GVIT – Global Technology and Communications Fund – Class I
2006	0.50	%	55,710	$	3.423239	$	190,709	0.00	%	10.62	%
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 Technology and Communications Fund – Class III
2006	0.50	%	12,314		13.569468		167,094	0.00	%	10.53	%
2005	0.50	%	18,758		12.276743		230,287	0.00	%	22.77	%	05/02/05
Gartmore GVIT – Global Utilities Fund – Class I
2006	0.50	%	31,924		20.017433		639,037	2.82	%	36.88	%
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	%
Gartmore GVIT – Government Bond Fund – Class I
2006	0.50	%	106,356		32.969134		3,506,465	4.11	%	2.83	%
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	%
Gartmore GVIT – Growth Fund: Class I
2006	0.50	%	165,708		19.261676		3,191,814	0.05	%	5.64	%
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
2006	0.50	%	25,884		13.017827		336,953	0.78	%	32.30	%
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 – International Index Fund – Class VI
2006	0.50	%	530		10.938962		5,798	1.38	%	9.39	%	05/01/06
Gartmore GVIT – Investor Destinations Aggressive Fund – Class II
2006	0.50	%	95,776		15.417742		1,476,650	2.11	%	16.29	%
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 – Investor Destinations Conservative Fund – Class II
2006	0.50	%	7,634		12.144751		92,713	2.89	%	5.64	%
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 – Investor Destinations Moderate Fund – Class II
2006	0.50	%	199,278		13.756055		2,741,279	2.50	%	10.80	%
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 – Investor Destinations Moderately Aggressive Fund – Class II
2006	0.50	%	152,382		14.757103		2,248,717	2.27	%	13.97	%
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 – Investor Destinations Moderately Conservative Fund – Class II
2006	0.50	%	18,590		12.985235		241,396	2.76	%	7.88	%
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	%
Gartmore GVIT – Mid Cap Growth Fund – Class I
2006	0.50	%	92,144		6.746610		621,660	0.00	%	9.36	%
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	%

(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***
Gartmore GVIT – Mid Cap Index Fund – Class I
2006	0.50%	202,754	$	16.323372	$	3,309,629	1.13%	9.34	%
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 – Money Market Fund – Class I
2006	0.50%	485,516		19.791189		9,608,939	4.49%	4.01	%
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	%
Gartmore GVIT – Nationwide® Fund – Class I
2006	0.50%	467,698		50.351226		23,549,168	1.08%	13.06	%
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	%
Gartmore GVIT – Nationwide® Leaders Fund – Class I
2006	0.50%	15,828		15.745056		249,213	0.97%	15.47	%
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
2006	0.50%	68,500		7.935212		543,562	0.00%	2.69	%
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
2006	0.50%	176,848		24.341439		4,304,735	0.43%	16.71	%
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	%
Gartmore GVIT – Small Company Fund – Class I
2006	0.50%	319,750		39.800578		12,726,235	0.11%	11.48	%
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	%
Gartmore GVIT – Turner GVIT 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
2006	0.50%	18,158		15.343823		278,613	0.25%	-0.78	%
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 GGVIT Comstock Value Fund: Class I
2006	0.50%	28,342		17.664583		500,650	1.74%	15.33	%
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 – Van Kampen GVIT Multi-Sector Bond Fund – Class I
2006	0.50%	39,090		14.504882		566,996	4.42%	4.32	%
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)

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***
Janus Aspen Series – Balanced Portfolio – Service Shares
2006	0.50%	9,396	$	13.942298	$	131,002	1.96%	9.87	%
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 Aspen Series – Forty Portfolio – Service Shares
2006	0.50%	81,402		8.784776		715,098	0.14%	8.57	%
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 Aspen Series – Global Technology Portfolio – Service Shares
2006	0.50%	75,318		4.301344		323,969	0.00%	7.29	%
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 Aspen Series – INTECH Risk-Managed Core Portfolio – Service Shares
2006	0.50%	5,540		17.431528		96,571	0.10%	10.22	%
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	%
Janus Aspen Series – International Growth Portfolio – Service II Shares
2006	0.50%	121,018		11.590627		1,402,674	1.97%	15.91	%	05/01/06
Janus Aspen Series – International Growth Portfolio – Service Shares
2006	0.50%	107,512		13.506291		1,452,088	1.92%	45.90	%
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	%
MFS® Variable Insurance Trust – Investors Growth Stock Series – Initial Class
2006	0.50%	9,652		13.975658		134,893	0.00%	7.04	%
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® Variable Insurance Trust – Value Series – Initial Class
2006	0.50%	22,532		18.027234		406,190	0.80%	20.24	%
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	%
Neuberger Berman Advisers Management Trust – Balanced Portfolio® – I Class Shares
2006	0.50%	1,380		12.657889		17,468	0.77%	10.12	%
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 Advisers Management Trust – Fasciano Portfolio – Class S
2006	0.50%	3,464		14.999207		51,957	0.00%	4.73	%
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 Advisers Management Trust – Growth Portfolio® – Class I
2006	0.50%	157,596		44.249809		6,973,593	0.00%	13.50	%
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	%
Neuberger Berman Advisers Management Trust – Guardian Portfolio – I Class Shares
2006	0.50%	44,048		14.159327		623,690	0.67%	12.81	%
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 Advisers Management Trust – International Portfolio – Class S
2006	0.50%	8,138		14.386244		117,075	0.00%	22.84	%
2005	0.50%	490		11.711411		5,739	0.22%	17.11	%	05/02/05

(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***
Neuberger Berman Advisers Management Trust – Limited Maturity Bond Portfolio – Class I
2006	0.50%	55,674	$	23.474013	$	1,306,892	3.06%	3.68	%
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	%
Neuberger Berman Advisers Management Trust – Mid Cap Growth Portfolio® – S Class Shares
2006	0.50%	17,228		18.227772		314,028	0.00%	13.90	%
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
Neuberger Berman Advisers Management Trust – Partners Portfolio® – Class I
2006	0.50%	241,712		38.230288		9,240,719	0.71%	11.68	%
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 Advisers Management Trust – Regency Portfolio – Class S
2006	0.50%	5,576		12.830334		71,542	0.44%	10.38	%
2005	0.50%	2,318		11.623425		26,943	0.00%	16.23	%	05/02/05
Neuberger Berman Advisers Management Trust – Socially Responsive Portfolio® – Class I
2006	0.50%	14,184		16.722808		237,196	0.17%	13.14	%
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	%
Oppenheimer Global Securities Fund/VA – Class 3
2006	0.50%	200,308		14.075542		2,819,444	0.80%	17.10	%
2005	0.50%	63,366		12.019802		761,647	0.00%	20.20	%	05/02/05
Oppenheimer Variable Account Funds – Oppenheimer Balanced Fund/VA – Non-Service Shares
2006	0.50%	124,154		39.040157		4,846,992	2.13%	10.59	%
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 Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA – Non-Service Shares
2006	0.50%	195,220		17.761150		3,467,332	0.38%	7.41	%
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	%
Oppenheimer Variable Account Funds – Oppenheimer Core Bond Fund/VA – Non-Service Shares
2006	0.50%	192,508		28.059142		5,401,609	5.20%	4.76	%
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	%
Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA – Non-Service Shares
2006	0.50%	342,600		46.398150		15,896,006	1.04%	17.11	%
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 Variable Account Funds – Oppenheimer High Income Fund/VA – Non-Service Shares
2006	0.50%	22,010		13.393515		294,791	6.97%	8.88	%
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)

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***
Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA – Non-Service Shares
2006	0.50%	116,614	$	10.802733	$	1,259,750	1.11%	14.45	%
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 Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA – Non-Service Shares
2006	0.50%	28,656		20.557489		589,095	0.14%	14.43	%
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 Variable Account Funds – Oppenheimer Mid Cap Fund/VA – Non-Service Shares
2006	0.50%	84,198		6.534169		550,164	0.00%	2.44	%
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	%
Putnam Variable Trust – Putnam VT Growth and Income Fund – IB Shares
2006	0.50%	4,488		16.533564		74,203	1.14%	15.33	%
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 Variable Trust – Putnam VT International Equity Fund – IB Shares
2006	0.50%	7,758		20.923951		162,328	0.44%	27.08	%
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 Variable Trust – Putnam VT Voyager II Fund – IB Shares
2006	0.50%	1,246		13.622763		16,974	0.13%	4.91	%
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 Variable Insurance Funds, Inc. – Strong International Stock Fund II
2002	0.50%	392		5.758212		2,257	4.04%	-26.91	%
T. Rowe Price Blue Chip Growth Portfolio – II
2006	0.50%	16,190		12.268264		198,623	0.24%	8.79	%
2005	0.50%	818		11.277528		9,225	0.29%	12.78	%	05/02/05
T. Rowe Price Equity Income Portfolio – II
2006	0.50%	58,750		12.516081		735,320	1.59%	18.06	%
2005	0.50%	5,032		10.601687		53,348	1.20%	6.02	%	05/02/05
T. Rowe Price Limited Term Bond Portfolio – Class II
2006	0.50%	1,008		10.448149		10,532	3.80%	3.51	%
2005	0.50%	540		10.094160		5,451	1.39%	0.94	%	05/02/05
Van Eck Worldwide Insurance Trust – Worldwide Bond Fund – Initial Class
2006	0.50%	48,396		23.154258		1,120,573	8.51%	5.95	%
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	%
Van Eck Worldwide Insurance Trust – Worldwide Emerging Markets Fund – Initial Class
2006	0.50%	193,210		22.028276		4,256,083	0.60%	38.80	%
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 Worldwide Insurance Trust – Worldwide Hard Assets Fund – Initial Class
2006	0.50%	127,868		38.410275		4,911,445	0.07%	23.87	%
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	%

(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***
Van Kampen – The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio – Class I
2006	0.50%	13,740	$	11.336567	$	155,764	3.94%	3.22	%
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	%
Van Kampen – The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio – Class I
2006	0.50%	51,120		20.392381		1,042,459	7.72%	10.26	%
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	%
Van Kampen – The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio – Class I
2006	0.50%	158,492		62.315078		9,876,441	1.08%	37.36	%
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 Advantage Variable Trust FundsSM – Wells Fargo Advantage VT Discovery FundSM
2006	0.50%	128,414		37.303028		4,790,231	0.00%	14.07	%
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 Advantage Variable Trust FundsSM – Wells Fargo Advantage VT Opportunity FundSM
2006	0.50%	290,006		57.385680		16,642,192	0.00%	11.66	%
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	%
Multiple Payment contracts and Flexible Premium contracts
AIM Variable Insurance Funds – AIM V.I. Basic Value Fund – Series I
2006	0.80%	20,662		16.871856		348,606	0.55%	12.30	%
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 Variable Insurance Funds – AIM V.I. Capital Appreciation Fund – Series I
2006	0.80%	1,686		14.847340		25,033	0.04%	5.46	%
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 Variable Insurance Funds – AIM V.I. Capital Development Fund – Series I Shares
2006	0.80%	7,586		18.635564		141,369	0.00%	15.59	%
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
AllianceBernstein Variable Products Series Fund, Inc. – Growth and Income Portfolio – Class A
2006	0.80%	28,032		16.564321		464,331	1.47%	16.35	%
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
AllianceBernstein Variable Products Series Fund, Inc. – Small-Mid Cap Value Portfolio – Class A
2006	0.80%	22,658		19.553834		443,051	0.39%	13.51	%
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 Variable Portfolios, Inc. – Balanced Fund – Class I
2006	0.80%	90,872		25.553959		2,322,139	1.93%	8.75	%
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	%

(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***
American Century Variable Portfolios, Inc. – Capital Appreciation Fund – Class I
2006	0.80%	250,368	$	25.255777	$	6,323,238	0.00	%	16.29	%
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	%
American Century Variable Portfolios, Inc. – Income & Growth Fund – Class I
2006	0.80%	99,066		14.222782		1,408,994	1.88	%	16.16	%
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	%
American Century Variable Portfolios, Inc. – Inflation Protection Fund – Class II
2006	0.80%	38,652		10.943891		423,003	3.22	%	0.78	%
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 Variable Portfolios, Inc. – International Fund – Class I
2006	0.80%	165,218		24.112654		3,983,844	1.65	%	24.03	%
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	%
American Century Variable Portfolios, Inc. – International Fund – Class III
2006	0.80%	80,238		14.402688		1,155,643	1.19	%	24.03	%
2005	0.80%	69,942		11.612061		812,171	0.00	%	16.12	%	05/02/05
American Century Variable Portfolios, Inc. – Mid Cap Value Fund – Class I
2006	0.80%	15,610		13.440882		209,812	1.31	%	19.34	%
2005	0.80%	5,722		11.262347		64,443	1.06	%	12.62	%	05/02/05
American Century Variable Portfolios, Inc. – Ultra® Fund – Class I
2006	0.80%	18,008		10.578387		190,496	0.00	%	-4.04	%
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 Variable Portfolios, Inc. – Value Fund – Class I
2006	0.80%	200,588		26.258655		5,267,171	1.39	%	17.71	%
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	%
American Century Variable Portfolios, Inc. – VistaSM Fund – Class I
2006	0.80%	1,344		12.331439		16,573	0.00	%	8.14	%
2005	0.80%	2,306		11.403054		26,295	0.00	%	14.03	%	05/02/05
Credit Suisse Trust – Global Small Cap Portfolio
2006	0.80%	24,796		16.158907		400,676	0.00	%	12.30	%
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	%
Credit Suisse Trust – International Focus Portfolio
2006	0.80%	174,476		16.695427		2,912,951	1.03	%	17.71	%
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	%

(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***
Credit Suisse Trust – Small Cap Growth Portfolio
2006	0.80	%	270,450	$	18.909841	$	5,114,166	0.00	%	3.94	%
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	%
Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio – Service Shares
2006	0.80	%	42,596		15.234242		648,918	0.36	%	13.50	%
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 Socially Responsible Growth Fund, Inc. – Initial Shares, The
2006	0.80	%	216,438		25.614125		5,543,870	0.11	%	8.33	%
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	%
Dreyfus Stock Index Fund, Inc. – Initial Shares
2006	0.80	%	1,054,364		33.756668		35,591,815	1.65	%	14.58	%
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	%
Dreyfus Variable Investment Fund – Appreciation Portfolio – Initial Shares
2006	0.80	%	155,994		16.022432		2,499,403	1.49	%	15.55	%
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	%
Dreyfus Variable Investment Fund – Developing Leaders Portfolio – Initial Shares
2006	0.80	%	11,426		15.314886		174,988	0.43	%	2.95	%
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 Variable Investment Fund – Growth and Income Portfolio – Initial Shares
2006	0.80	%	83,514		15.250864		1,273,661	0.77	%	13.60	%
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	%
Federated Insurance Series – Federated American Leaders Fund II – Primary Shares
2006	0.80	%	1,782		16.477377		29,363	1.47	%	15.88	%
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 Insurance Series – Federated Capital Appreciation Fund II – Primary Shares
2006	0.80	%	638		14.888388		9,499	0.79	%	15.29	%
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 Insurance Series – Federated Quality Bond Fund II – Primary Shares
2006	0.80	%	39,918		11.884116		474,390	3.43	%	3.33	%
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

(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***
Fidelity® Variable Insurance Products Fund – Equity-Income Portfolio – Initial Class
2006	0.80	%	547,442	$	55.961825	$	30,635,853	3.30	%	19.24	%
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	%
Fidelity® Variable Insurance Products Fund – Growth Portfolio – Initial Class
2006	0.80	%	830,726		42.046610		34,929,212	0.40	%	6.00	%
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	%
Fidelity® Variable Insurance Products Fund – High Income Portfolio – Initial Class
2006	0.80	%	240,204		29.904168		7,183,101	7.80	%	10.35	%
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	%
Fidelity® Variable Insurance Products Fund – Overseas Portfolio – Initial Class
2006	0.80	%	153,216		29.547189		4,527,102	0.91	%	17.14	%
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	%
Fidelity® Variable Insurance Products Fund – Overseas Portfolio – Service Class R
2006	0.80	%	120,050		14.549286		1,746,642	0.77	%	17.01	%
2005	0.80	%	84,208		12.433969		1,047,040	0.00	%	24.34	%	05/02/05
Fidelity® Variable Insurance Products Fund II – Asset Manager Portfolio – Initial Class
2006	0.80	%	202,948		30.222570		6,133,610	2.71	%	6.46	%
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	%
Fidelity® Variable Insurance Products Fund II – Contrafund® Portfolio – Initial Class
2006	0.80	%	854,560		35.587790		30,411,902	1.27	%	10.83	%
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	%
Fidelity® Variable Insurance Products Fund II – Investment Grade Bond Portfolio – Service Class
2006	0.80	%	50,982		11.020863		561,866	3.27	%	3.47	%
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® Variable Insurance Products Fund III – Growth Opportunities Portfolio – Initial Class
2006	0.80	%	228,606		11.749061		2,685,906	0.69	%	4.62	%
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	%
Fidelity® Variable Insurance Products Fund III – Mid Cap Portfolio – Service Class
2006	0.80	%	167,292		22.714275		3,799,916	0.25	%	11.70	%
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® Variable Insurance Products Fund III – Value Strategies Portfolio – Service Class
2006	0.80	%	26,916		15.505844		417,355	0.41	%	15.27	%
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

(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***
Fidelity® Variable Insurance Products Fund IV – Energy Portfolio – Service Class 2
2006	0.80%	110,500	$	15.552071	$	1,718,504	0.73%	15.69%
2005	0.80%	82,484		13.442988		1,108,831	0.65%	34.43%	05/02/05
Fidelity® Variable Insurance Products Fund IV – Freedom Fund 2010 Portfolio – Service Class
2006	0.80%	9,704		11.706711		113,602	3.42%	8.91%
2005	0.80%	2,332		10.748937		25,067	0.56%	7.49%	05/02/05
Fidelity® Variable Insurance Products Fund IV – Freedom Fund 2020 Portfolio – Service Class
2006	0.80%	16,066		12.267747		197,094	1.69%	10.92%
2005	0.80%	15,234		11.059893		168,486	0.86%	10.60%	05/02/05
Fidelity® Variable Insurance Products Fund IV – Freedom Fund 2030 Portfolio – Service Class
2006	0.80%	11,130		12.650838		140,804	5.31%	12.25%
2005	0.80%	3,818		11.269912		43,029	1.32%	12.70%	05/02/05
Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Fund – Class 2
2006	0.80%	13,168		11.157005		146,915	0.00%	11.57%	05/01/06
Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund – Class 1
2006	0.80%	112,826		16.187918		1,826,418	1.22%	16.50%
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 Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund – Class 1
2006	0.80%	58,816		20.579116		1,210,381	0.82%	16.37%
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 Variable Insurance Products Trust – Templeton Developing Markets Securities Fund – Class 3
2006	0.80%	41,104		16.194484		665,658	1.19%	27.15%
2005	0.80%	18,806		12.736654		239,526	0.53%	27.37%	05/02/05
Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund – Class 1
2006	0.80%	20,280		20.594561		417,658	1.41%	20.73%
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 Variable Insurance Products Trust – Templeton Foreign Securities Fund – Class 3
2006	0.80%	35,494		13.530342		480,246	1.38%	20.50%
2005	0.80%	19,372		11.228867		217,526	0.39%	12.29%	05/02/05
Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund – Class 3
2006	0.80%	19,066		11.003055		209,784	2.45%	11.95%
2005	0.80%	2,864		9.828879		28,150	7.95%	-1.71%	05/02/05
Gartmore GVIT – American Funds GVIT Asset Allocation Fund – Class II
2006	0.80%	23,042		10.501149		241,967	3.56%	5.01%	05/01/06
Gartmore GVIT – American Funds GVIT Bond Fund – Class II
2006	0.80%	11,396		10.483128		119,466	0.05%	4.83%	05/01/06
Gartmore GVIT – American Funds GVIT Global Growth Fund – Class II
2006	0.80%	15,330		10.784738		165,330	0.07%	7.85%	05/01/06
Gartmore GVIT – American Funds GVIT Growth Fund – Class II
2006	0.80%	17,582		10.309581		181,263	1.29%	3.10%	05/01/06
Gartmore GVIT – Dreyfus GGVIT International Value Fund – Class I
2006	0.80%	14,186		22.396963		317,723	2.08%	21.70%
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
Gartmore GVIT – Dreyfus GGVIT International Value Fund – Class III
2006	0.80%	45,492		13.871454		631,040	2.01%	21.77%
2005	0.80%	35,798		11.391430		407,790	0.95%	13.91%	05/02/05
Gartmore GVIT – Emerging Markets Fund – Class I
2006	0.80%	24,800		24.105617		597,819	0.72%	35.63%
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%

(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 – Emerging Markets Fund – Class III
2006	0.80	%	71,548	$	17.983970	$	1,286,717	0.78	%	35.56	%
2005	0.80	%	49,358		13.266490		654,807	0.19	%	32.66	%	05/02/05
Gartmore GVIT – Federated GGVIT High Income Bond Fund – Class I
2006	0.80	%	8,630		13.461693		116,174	7.10	%	9.72	%
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 – Federated GGVIT High Income Bond Fund – Class III
2006	0.80	%	9,102		11.504161		104,711	7.03	%	9.72	%
2005	0.80	%	8,904		10.485051		93,359	6.33	%	4.85	%	05/02/05
Gartmore GVIT – Global Financial Services Fund – Class I
2006	0.80	%	20,092		19.104581		383,849	1.89	%	19.37	%
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
2006	0.80	%	3,876		13.193822		51,139	0.00	%	1.89	%
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 Health Sciences Fund – Class III
2006	0.80	%	14,692		10.886820		159,949	0.00	%	1.89	%
2005	0.80	%	19,656		10.685265		210,030	0.00	%	6.85	%	05/02/05
Gartmore GVIT – Global Technology and Communications Fund – Class I
2006	0.80	%	51,828		3.359674		174,125	0.00	%	10.29	%
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	%
Gartmore GVIT – Global Technology and Communications Fund – Class III
2006	0.80	%	8,150		13.502082		110,042	0.00	%	10.20	%
2005	0.80	%	10,504		12.252375		128,699	0.00	%	22.52	%	05/02/05
Gartmore GVIT – Global Utilities Fund – Class I
2006	0.80	%	44,146		19.739493		871,420	2.82	%	36.47	%
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
2006	0.80	%	157,392		24.939296		3,925,246	4.11	%	2.52	%
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	%
Gartmore GVIT – Growth Fund: Class I
2006	0.80	%	597,654		18.924499		11,310,303	0.05	%	5.32	%
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	%
Gartmore GVIT – International Growth Fund – Class I
2006	0.80	%	90,176		12.776337		1,152,119	0.78	%	31.91	%
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	%

(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***
Gartmore GVIT – International Index Fund – Class VI
2006	0.80%	1,052	$	10.917219	$	11,485	1.38%	9.17	%	05/01/06
Gartmore GVIT – Investor Destinations Aggressive Fund – Class II
2006	0.80%	91,086		15.191606		1,383,743	2.11%	15.94	%
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 – Investor Destinations Conservative Fund – Class II
2006	0.80%	20,230		11.966643		242,085	2.89%	5.32	%
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 – Investor Destinations Moderate Fund – Class II
2006	0.80%	241,266		13.554301		3,270,192	2.50%	10.47	%
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 – Investor Destinations Moderately Aggressive Fund – Class II
2006	0.80%	247,768		14.540668		3,602,712	2.27%	13.63	%
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 – Investor Destinations Moderately Conservative Fund – Class II
2006	0.80%	99,224		12.794782		1,269,549	2.76%	7.56	%
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
Gartmore GVIT – Mid Cap Growth Fund – Class I
2006	0.80%	77,924		6.612974		515,309	0.00%	9.03	%
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	%
Gartmore GVIT – Mid Cap Index Fund – Class I
2006	0.80%	141,094		16.000413		2,257,562	1.13%	9.02	%
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	%
Gartmore GVIT – Money Market Fund – Class I
2006	0.80%	566,642		15.851431		8,982,087	4.49%	3.70	%
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	%
Gartmore GVIT – Nationwide® Fund – Class I
2006	0.80%	1,155,132		40.432316		46,704,662	1.08%	12.72	%
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	%

(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***
Gartmore GVIT – Nationwide® Leaders Fund – Class I
2006	0.80%	10,376	$	15.526442	$	161,102	0.97%	15.12	%
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
2006	0.80%	62,918		7.778128		489,384	0.00%	2.39	%
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	%
Gartmore GVIT – Small Cap Value Fund – Class I
2006	0.80%	175,584		23.717026		4,164,330	0.43%	16.36	%
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	%
Gartmore GVIT – Small Company Fund – Class I
2006	0.80%	325,094		38.902849		12,647,083	0.11%	11.15	%
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	%
Gartmore GVIT – Turner GVIT 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	%
Gartmore GVIT – U.S. Growth Leaders Fund – Class I
2006	0.80%	13,106		15.130732		198,303	0.25%	-1.08	%
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 GGVIT Comstock Value Fund: Class I
2006	0.80%	22,182		17.471634		387,556	1.74%	14.98	%
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 – Van Kampen GVIT Multi-Sector Bond Fund – Class I
2006	0.80%	37,902		14.217959		538,889	4.42%	4.00	%
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	%
Janus Aspen Series – Balanced Portfolio – Service Shares
2006	0.80%	5,148		13.789981		70,991	1.96%	9.54	%
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 Aspen Series – Forty Portfolio – Service Shares
2006	0.80%	164,548		8.610938		1,416,913	0.14%	8.25	%
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	%
Janus Aspen Series – Global Technology Portfolio – Service Shares
2006	0.80%	109,934		4.216170		463,500	0.00%	6.97	%
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	%

(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***
Janus Aspen Series – INTECH Risk-Managed Core Portfolio – Service Shares
2006	0.80%	3,660	$	17.241178	$	63,103	0.10%	9.89	%
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
Janus Aspen Series – International Growth Portfolio – Service II Shares
2006	0.80%	102,986		11.567583		1,191,299	1.97%	15.68	%	05/01/06
Janus Aspen Series – International Growth Portfolio – Service Shares
2006	0.80%	110,056		13.239048		1,457,037	1.92%	45.46	%
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	%
MFS® Variable Insurance Trust – Investors Growth Stock Series – Initial Class
2006	0.80%	9,996		13.822967		138,174	0.00%	6.72	%
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
MFS® Variable Insurance Trust – Value Series – Initial Class
2006	0.80%	23,056		17.830357		411,097	0.80%	19.88	%
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 Advisers Management Trust – Balanced Portfolio® – I Class Shares
2006	0.80%	852		27.426214		23,367	0.77%	9.79	%
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	%
Neuberger Berman Advisers Management Trust – Fasciano Portfolio – Class S
2006	0.80%	2,652		14.835360		39,343	0.00%	4.42	%
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 Advisers Management Trust – Growth Portfolio® – Class I
2006	0.80%	262,710		30.039737		7,891,739	0.00%	13.16	%
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	%
Neuberger Berman Advisers Management Trust – Guardian Portfolio – I Class Shares
2006	0.80%	73,922		13.796076		1,019,834	0.67%	12.48	%
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	%
Neuberger Berman Advisers Management Trust – International Portfolio – Class S
2006	0.80%	8,786		14.314811		125,770	0.00%	22.47	%
2005	0.80%	58,070		11.688169		678,732	0.22%	16.88	%	05/02/05
Neuberger Berman Advisers Management Trust – Limited Maturity Bond Portfolio – Class I
2006	0.80%	50,380		18.886370		951,495	3.06%	3.37	%
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	%
Neuberger Berman Advisers Management Trust – Mid Cap Growth Portfolio® – S Class Shares
2006	0.80%	11,910		18.028719		214,722	0.00%	13.56	%
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

(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***
Neuberger Berman Advisers Management Trust – Partners Portfolio® – Class I
2006	0.80%	317,204	$	37.436671	$	11,875,062	0.71%	11.35	%
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	%
Neuberger Berman Advisers Management Trust – Regency Portfolio – Class S
2006	0.80%	2,974		12.766616		37,968	0.44%	10.05	%
2005	0.80%	2,398		11.600355		27,818	0.00%	16.00	%	05/02/05
Neuberger Berman Advisers Management Trust – Socially Responsive Portfolio® – Class I
2006	0.80%	9,890		16.540130		163,582	0.17%	12.80	%
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
Oppenheimer Global Securities Fund/VA – Class 3
2006	0.80%	235,194		14.005648		3,294,044	0.80%	16.75	%
2005	0.80%	156,170		11.995949		1,873,407	0.00%	19.96	%	05/02/05
Oppenheimer Variable Account Funds – Oppenheimer Balanced Fund/VA – Non-Service Shares
2006	0.80%	146,968		36.859294		5,417,137	2.13%	10.26	%
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	%
Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA – Non-Service Shares
2006	0.80%	329,602		17.315647		5,707,272	0.38%	7.09	%
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	%
Oppenheimer Variable Account Funds – Oppenheimer Core Bond Fund/VA – Non-Service Shares
2006	0.80%	146,462		25.379927		3,717,195	5.20%	4.44	%
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	%
Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA – Non-Service Shares
2006	0.80%	314,678		45.492106		14,315,365	1.04%	16.76	%
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	%
Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA – Non-Service Shares
2006	0.80%	17,852		13.247178		236,489	6.97%	8.55	%
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 Variable Account Funds – Oppenheimer Main Street Fund®/VA – Non-Service Shares
2006	0.80%	57,418		10.588991		607,999	1.11%	14.11	%
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	%
Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA – Non-Service Shares
2006	0.80%	24,146		20.333041		490,962	0.14%	14.08	%
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

(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***
Oppenheimer Variable Account Funds – Oppenheimer Mid Cap Fund/VA – Non-Service Shares
2006	0.80%	125,750	$	6.404804	$	805,404	0.00%	2.14	%
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	%
Putnam Variable Trust – Putnam VT Growth and Income Fund – IB Shares
2006	0.80%	2,546		16.352963		41,635	1.14%	14.99	%
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 Variable Trust – Putnam VT International Equity Fund – IB Shares
2006	0.80%	9,818		20.695424		203,188	0.44%	26.70	%
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 Variable Trust – Putnam VT Voyager II Fund – IB Shares
2006	0.80%	2,010		13.473959		27,083	0.13%	4.60	%
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 Variable Insurance Funds, Inc. – Strong International Stock Fund II
2002	0.80%	199,430		5.696130		1,135,979	4.04%	-27.13	%
T. Rowe Price Blue Chip Growth Portfolio – II
2006	0.80%	9,592		12.207295		117,092	0.24%	8.46	%
2005	0.80%	17,726		11.255124		199,508	0.29%	12.55	%	05/02/05
T. Rowe Price Equity Income Portfolio – II
2006	0.80%	36,012		12.453914		448,490	1.59%	17.70	%
2005	0.80%	21,876		10.580627		231,462	1.20%	5.81	%	05/02/05
T. Rowe Price Limited Term Bond Portfolio – Class II
2006	0.80%	4,952		10.395898		51,480	3.80%	3.20	%
2005	0.80%	2,888		10.073971		29,094	1.39%	0.74	%	05/02/05
Van Eck Worldwide Insurance Trust – Worldwide Bond Fund – Initial Class
2006	0.80%	42,580		20.739979		883,108	8.51%	5.63	%
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	%
Van Eck Worldwide Insurance Trust – Worldwide Emerging Markets Fund – Initial Class
2006	0.80%	204,428		21.493674		4,393,909	0.60%	38.38	%
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	%
Van Eck Worldwide Insurance Trust – Worldwide Hard Assets Fund – Initial Class
2006	0.80%	71,458		45.639544		3,261,311	0.07%	23.50	%
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	%
Van Kampen – The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio – Class I
2006	0.80%	15,064		11.212678		168,908	3.94%	2.91	%
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 – The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio – Class I
2006	0.80%	31,246		19.881064		621,204	7.72%	9.93	%
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	%

(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***
Van Kampen – The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio – Class I
2006	0.80%	195,750	$	60.938109	$	11,928,635	1.08%	36.95%
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%
Wells Fargo Advantage Variable Trust FundsSM – Wells Fargo Advantage VT Discovery FundSM
2006	0.80%	70,852		36.649699		2,596,704	0.00%	13.73%
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%
Wells Fargo Advantage Variable Trust FundsSM – Wells Fargo Advantage VT Opportunity FundSM
2006	0.80%	232,092		56.380823		13,085,538	0.00%	11.33%
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%
American Century Variable Portfolios, Inc. – Balanced Fund – Class I
2006	1.00%	44,838		11.810656		529,566	1.93%	8.53%
2005	1.00%	52,040		10.882231		566,311	1.83%	3.89%
American Century Variable Portfolios, Inc. – Capital Appreciation Fund – Class I
2006	1.00%	149,970		8.240477		1,235,824	0.00%	16.06%
2005	1.00%	171,146		7.100441		1,215,212	0.00%	20.85%
American Century Variable Portfolios, Inc. – Income & Growth Fund – Class I
2006	1.00%	24,302		11.552475		280,748	1.88%	15.93%
2005	1.00%	20,504		9.965424		204,331	2.03%	3.59%
American Century Variable Portfolios, Inc. – International Fund – Class I
2006	1.00%	60,986		10.167970		620,104	1.65%	23.79%
2005	1.00%	61,088		8.214210		501,790	1.27%	12.13%
American Century Variable Portfolios, Inc. – Ultra® Fund – Class I
2006	1.00%	1,340		10.480144		14,043	0.00%	-4.24%
2005	1.00%	5,288		10.943695		57,870	0.00%	1.15%
American Century Variable Portfolios, Inc. – Value Fund – Class I
2006	1.00%	83,020		19.238731		1,597,199	1.39%	17.48%
2005	1.00%	71,670		16.376728		1,173,720	0.88%	3.99%
Credit Suisse Trust – Global Small Cap Portfolio
2006	1.00%	8,040		7.281318		58,542	0.00%	12.08%
2005	1.00%	3,714		6.496475		24,128	0.00%	14.99%
Credit Suisse Trust – International Focus Portfolio
2006	1.00%	25,416		11.176387		284,059	1.03%	17.48%
2005	1.00%	15,960		9.513742		151,839	0.91%	16.27%
Credit Suisse Trust – Small Cap Growth Portfolio
2006	1.00%	51,800		7.453113		386,071	0.00%	3.73%
2005	1.00%	41,474		7.185242		298,001	0.00%	-3.65%
Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio – Service Shares
2006	1.00%	20,468		15.092865		308,921	0.36%	13.28%
2005	1.00%	15,334		13.324009		204,310	0.00%	6.17%
Dreyfus Socially Responsible Growth Fund, Inc. – Initial Shares, The
2006	1.00%	21,910		6.835295		149,761	0.11%	8.12%
2005	1.00%	20,360		6.322127		128,719	0.00%	2.59%
Dreyfus Stock Index Fund, Inc. – Initial Shares
2006	1.00%	377,588		10.134844		3,826,795	1.65%	14.35%
2005	1.00%	344,792		8.862854		3,055,841	1.60%	3.65%
Dreyfus Variable Investment Fund – Appreciation Portfolio – Initial Shares
2006	1.00%	77,230		10.805247		834,489	1.49%	15.32%
2005	1.00%	21,248		9.369677		199,087	0.02%	3.34%
Dreyfus Variable Investment Fund – Growth and Income Portfolio – Initial Shares
2006	1.00%	22,804		10.356384		236,167	0.77%	13.38%
2005	1.00%	23,964		9.134532		218,900	1.34%	2.33%

(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***
Federated Insurance Series – Federated Quality Bond Fund II – Primary Shares
2006	1.00%	29,734	$	11.773803	$	350,082	3.43%	3.12%
2005	1.00%	4,004		11.417503		45,716	3.65%	0.29%
Fidelity® Variable Insurance Products Fund – Equity-Income Portfolio – Initial Class
2006	1.00%	502,702		14.263392		7,170,236	3.30%	19.00%
2005	1.00%	537,298		11.985917		6,440,009	1.64%	4.81%
Fidelity® Variable Insurance Products Fund – Growth Portfolio – Initial Class
2006	1.00%	747,634		7.360951		5,503,297	0.40%	5.79%
2005	1.00%	746,748		6.958097		5,195,945	0.51%	4.75%
Fidelity® Variable Insurance Products Fund – High Income Portfolio – Initial Class
2006	1.00%	136,954		11.731213		1,606,637	7.80%	10.13%
2005	1.00%	126,486		10.651851		1,347,310	16.14%	1.68%
Fidelity® Variable Insurance Products Fund – Overseas Portfolio – Initial Class
2006	1.00%	180,844		12.420750		2,246,218	0.91%	16.91%
2005	1.00%	162,770		10.624371		1,729,329	0.71%	17.87%
Fidelity® Variable Insurance Products Fund II – Asset Manager Portfolio – Initial Class
2006	1.00%	252,802		10.985811		2,777,235	2.71%	6.25%
2005	1.00%	287,746		10.339381		2,975,116	2.76%	3.01%
Fidelity® Variable Insurance Products Fund II – Contrafund® Portfolio – Initial Class
2006	1.00%	364,854		13.531021		4,936,847	1.27%	10.61%
2005	1.00%	210,686		12.233291		2,577,383	0.29%	15.78%
Fidelity® Variable Insurance Products Fund III – Growth Opportunities Portfolio – Initial Class
2006	1.00%	10,970		8.931581		97,979	0.69%	4.41%
2005	1.00%	11,798		8.554456		100,925	0.95%	7.81%
Fidelity® Variable Insurance Products Fund III – Value Strategies Portfolio – Service Class
2006	1.00%	14,346		15.361961		220,383	0.41%	15.04%
2005	1.00%	11,298		13.353090		150,863	0.00%	1.54%
Gartmore GVIT – Emerging Markets Fund – Class I
2006	1.00%	29,436		23.450961		690,302	0.72%	35.36%
2005	1.00%	19,494		17.324605		337,726	0.61%	31.32%
Gartmore GVIT – Global Financial Services Fund – Class I
2006	1.00%	5,656		18.927318		107,053	1.89%	19.13%
2005	1.00%	5,612		15.888310		89,165	2.00%	10.05%
Gartmore GVIT – Global Health Sciences Fund – Class I
2006	1.00%	17,932		13.071309		234,395	0.00%	1.69%
2005	1.00%	19,108		12.854278		245,620	0.00%	7.36%
Gartmore GVIT – Global Technology and Communications Fund – Class I
2006	1.00%	27,680		3.224567		89,256	0.00%	10.07%
2005	1.00%	15,226		2.929673		44,607	0.00%	-1.50%
Gartmore GVIT – Global Utilities Fund – Class I
2006	1.00%	38,254		19.556346		748,108	2.82%	36.20%
2005	1.00%	8,262		14.358831		118,633	2.16%	5.33%
Gartmore GVIT – Government Bond Fund – Class I
2006	1.00%	127,692		13.201192		1,685,687	4.11%	2.32%
2005	1.00%	119,678		12.902408		1,544,134	3.64%	2.24%
Gartmore GVIT – Growth Fund: Class I
2006	1.00%	55,020		5.812653		319,812	0.05%	5.11%
2005	1.00%	38,158		5.529847		211,008	0.08%	5.44%
Gartmore GVIT – International Growth Fund – Class I
2006	1.00%	37,946		12.684823		481,338	0.78%	31.65%
2005	1.00%	24,308		9.635544		234,221	1.03%	28.92%
Gartmore GVIT – Investor Destinations Aggressive Fund – Class II
2006	1.00%	290		15.042687		4,362	2.11%	15.71%
Gartmore GVIT – Investor Destinations Conservative Fund – Class II
2006	1.00%	5,798		11.849304		68,702	2.89%	5.11%
2005	1.00%	2,858		11.273191		32,219	2.78%	2.28%
Gartmore GVIT – Investor Destinations Moderate Fund – Class II
2006	1.00%	41,320		13.421439		554,574	2.50%	10.25%
2005	1.00%	36,840		12.173861		448,485	2.36%	4.30%

(Continued)

92

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 – Investor Destinations Moderately Aggressive Fund – Class II
2006	1.00%	23,212	$	14.398126	$	334,209	2.27%	13.40%
2005	1.00%	1,550		12.696312		19,679	2.14%	6.01%
Gartmore GVIT – Investor Destinations Moderately Conservative Fund – Class II
2006	1.00%	77,310		12.669367		979,469	2.76%	7.35%
2005	1.00%	6,244		11.802269		73,693	2.75%	3.45%
Gartmore GVIT – Mid Cap Growth Fund – Class I
2006	1.00%	30,726		6.104214		187,558	0.00%	8.82%
2005	1.00%	24,834		5.609609		139,309	0.00%	8.65%
Gartmore GVIT – Mid Cap Index Fund – Class I
2006	1.00%	41,104		14.390791		591,519	1.13%	8.80%
2005	1.00%	43,640		13.226964		577,225	1.03%	10.99%
Gartmore GVIT – Money Market Fund – Class I
2006	1.00%	495,002		10.886811		5,388,993	4.49%	3.49%
2005	1.00%	408,430		10.519895		4,296,641	2.64%	1.64%
Gartmore GVIT – Nationwide® Fund – Class I
2006	1.00%	167,948		11.015308		1,849,999	1.08%	12.50%
2005	1.00%	153,820		9.791361		1,506,107	0.91%	6.38%
Gartmore GVIT – Nationwide® Leaders Fund – Class I
2006	1.00%	2,084		15.382337		32,057	0.97%	14.89%
2005	1.00%	3,916		13.388228		52,428	1.54%	9.22%
Gartmore GVIT – Small Cap Growth Fund – Class I
2006	1.00%	24,648		7.684584		189,410	0.00%	2.18%
2005	1.00%	9,740		7.520431		73,249	0.00%	7.02%
Gartmore GVIT – Small Cap Value Fund – Class I
2006	1.00%	53,404		18.925926		1,010,720	0.43%	16.13%
2005	1.00%	105,618		16.297231		1,721,281	0.06%	2.05%
Gartmore GVIT – Small Company Fund – Class I
2006	1.00%	49,560		15.031685		744,970	0.11%	10.93%
2005	1.00%	40,176		13.551021		544,426	0.00%	11.20%
Gartmore GVIT – U.S. Growth Leaders Fund – Class I
2006	1.00%	9,994		14.990265		149,813	0.25%	-1.28%
2005	1.00%	13,390		15.184319		203,318	0.00%	10.85%
Gartmore GVIT – Van Kampen GVIT Multi-Sector Bond Fund – Class I
2006	1.00%	14,786		13.748525		203,286	4.42%	3.80%
2005	1.00%	2,210		13.245485		29,273	3.89%	1.17%
Janus Aspen Series – Forty Portfolio – Service Shares
2006	1.00%	9,930		8.873089		88,110	0.14%	8.03%
2005	1.00%	8,522		8.213276		69,994	0.01%	11.44%
Janus Aspen Series – Global Technology Portfolio – Service Shares
2006	1.00%	17,218		4.361506		75,096	0.00%	6.76%
2005	1.00%	17,522		4.085406		71,584	0.00%	10.44%
Janus Aspen Series – International Growth Portfolio – Service Shares
2006	1.00%	109,880		14.367390		1,578,689	1.92%	45.17%
2005	1.00%	35,600		9.896611		352,319	1.14%	30.63%
Neuberger Berman Advisers Management Trust – Growth Portfolio® – Class I
2006	1.00%	200,916		6.390816		1,284,017	0.00%	12.94%
2005	1.00%	189,716		5.658791		1,073,563	0.00%	12.37%
Neuberger Berman Advisers Management Trust – Guardian Portfolio – I Class Shares
2006	1.00%	7,572		12.188388		92,290	0.67%	12.25%
2005	1.00%	2,788		10.858076		30,272	0.14%	7.32%
Neuberger Berman Advisers Management Trust – Limited Maturity Bond Portfolio – Class I
2006	1.00%	58,744		12.028394		706,596	3.06%	3.17%
2005	1.00%	47,674		11.659063		555,834	2.61%	0.44%
Neuberger Berman Advisers Management Trust – Partners Portfolio® – Class I
2006	1.00%	89,328		14.828703		1,324,618	0.71%	11.13%
2005	1.00%	78,466		13.343910		1,047,043	1.02%	16.87%

(Continued)

93

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 Variable Account Funds – Oppenheimer Balanced Fund/VA – Non-Service Shares
2006	1.00%	143,020	$	13.594148	$	1,944,235	2.13%	10.04%
2005	1.00%	127,708		12.353496		1,577,640	1.76%	2.86%
Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA – Non-Service Shares
2006	1.00%	77,536		8.747201		678,223	0.38%	6.88%
2005	1.00%	112,070		8.184351		917,220	0.93%	4.06%
Oppenheimer Variable Account Funds – Oppenheimer Core Bond Fund/VA – Non-Service Shares
2006	1.00%	50,010		13.730362		686,655	5.20%	4.23%
2005	1.00%	32,080		13.172613		422,577	5.34%	1.57%
Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA – Non-Service Shares
2006	1.00%	160,988		14.236174		2,291,853	1.04%	16.52%
2005	1.00%	136,196		12.217371		1,663,957	1.07%	13.17%
Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA – Non-Service Shares
2006	1.00%	7,816		10.443096		81,623	1.11%	13.88%
2005	1.00%	16,864		9.169966		154,642	1.25%	4.92%
Oppenheimer Variable Account Funds – Oppenheimer Mid Cap Fund/VA – Non-Service Shares
2006	1.00%	13,928		5.595113		77,929	0.00%	1.93%
2005	1.00%	14,778		5.488955		81,116	0.00%	11.21%
Van Eck Worldwide Insurance Trust – Worldwide Bond Fund – Initial Class
2006	1.00%	42,236		15.191481		641,627	8.51%	5.42%
2005	1.00%	44,648		14.409920		643,374	7.55%	-3.99%
Van Eck Worldwide Insurance Trust – Worldwide Emerging Markets Fund – Initial Class
2006	1.00%	39,850		24.616702		980,976	0.60%	38.11%
2005	1.00%	33,638		17.824242		599,572	0.73%	30.69%
Van Eck Worldwide Insurance Trust – Worldwide Hard Assets Fund – Initial Class
2006	1.00%	62,902		28.446616		1,789,349	0.07%	23.26%
2005	1.00%	66,950		23.079126		1,545,147	0.30%	50.17%
Van Kampen – The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio – Class I
2006	1.00%	3,962		19.973989		79,137	7.72%	9.71%
2005	1.00%	8,002		18.206549		145,689	7.52%	11.14%
Van Kampen – The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio – Class I
2006	1.00%	73,408		31.826979		2,336,355	1.08%	36.68%
2005	1.00%	63,520		23.286362		1,479,150	1.22%	15.89%
Wells Fargo Advantage Variable Trust FundsSM – Wells Fargo Advantage VT Discovery FundSM
2006	1.00%	25,940		16.167820		419,393	0.00%	13.51%
2005	1.00%	30,292		14.243955		431,478	0.00%	7.20%
Wells Fargo Advantage Variable Trust FundsSM – Wells Fargo Advantage VT Opportunity FundSM
2006	1.00%	160,034		13.078165		2,092,951	0.00%	11.11%
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 Variable Portfolios, Inc. – Balanced Fund – Class I
2006	1.30%	990		23.745073		23,508	1.93%	8.21%
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%
American Century Variable Portfolios, Inc. – Capital Appreciation Fund – Class I
2006	1.30%	556		25.335087		14,086	0.00%	15.71%
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%
American Century Variable Portfolios, Inc. – 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%

(Continued)

94

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 Variable Portfolios, Inc. – International Fund – Class I
2006	1.30%	6,172	$	22.662010	$	139,870	1.65%	23.42%
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%
American Century Variable Portfolios, Inc. – 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 Variable Portfolios, Inc. – 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%
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%
Credit Suisse Trust – International Focus Portfolio
2006	1.30%	10,164		15.763156		160,217	1.03%	17.13%
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%
Credit Suisse Trust – Small Cap Growth Portfolio
2006	1.30%	7,148		17.853550		127,617	0.00%	3.42%
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%
Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio – Service Shares
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 Socially Responsible Growth Fund, Inc. – Initial Shares, The
2006	1.30%	430		23.974748		10,309	0.11%	7.79%
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%
Dreyfus Stock Index Fund, Inc. – Initial Shares
2006	1.30%	13,440		31.594380		424,628	1.65%	14.01%
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%
Dreyfus Variable Investment Fund – Appreciation Portfolio – Initial Shares
2006	1.30%	10,234		15.282356		156,400	1.49%	14.98%
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%
Dreyfus Variable Investment Fund – 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%

(Continued)

95

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 Insurance Series – Federated 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® Variable Insurance Products Fund – Equity-Income Portfolio – Initial Class
2006	1.30%	3,596		51.616411		185,613	3.30%	18.65%
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%
Fidelity® Variable Insurance Products Fund – Growth Portfolio – Initial Class
2006	1.30%	3,826		39.316236		150,424	0.40%	5.47%
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%
Fidelity® Variable Insurance Products Fund – High Income Portfolio – Initial Class
2006	1.30%	9,972		30.387910		303,028	7.80%	9.80%
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%
Fidelity® Variable Insurance Products Fund – Overseas Portfolio – Initial Class
2006	1.30%	782		25.962703		20,303	0.91%	16.56%
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%
Fidelity® Variable Insurance Products Fund II – Asset Manager Portfolio – Initial Class
2006	1.30%	654		31.718247		20,744	2.71%	5.93%
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%
Fidelity® Variable Insurance Products Fund II – Contrafund® Portfolio – Initial Class
2006	1.30%	3,016		33.601299		101,342	1.27%	10.28%
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%
Fidelity® Variable Insurance Products Fund 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%
Fidelity® Variable Insurance Products Fund 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 – 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%
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

(Continued)

96

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	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%
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
2006	1.30%	7,562		25.368610		191,837	4.11%	2.01%
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%
Gartmore GVIT – Growth Fund: Class I
2006	1.30%	932		17.584603		16,389	0.05%	4.80%
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%
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%
Gartmore GVIT – Investor Destinations 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%
Gartmore GVIT – Investor Destinations Moderate Fund – Class II
2006	1.30%	2,822		13.224582		37,320	2.50%	9.92%
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 – Investor Destinations 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 – Investor Destinations 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
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%
Gartmore GVIT – Mid Cap Index Fund – Class I
2006	1.30%	4,202		15.476230		65,031	1.13%	8.47%
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%

(Continued)

97

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
2006	1.30%	1,120	$	15.396940	$	17,245	4.49%	3.18%
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%
Gartmore GVIT – Nationwide® Fund – Class I
2006	1.30%	314		40.292927		12,652	1.08%	12.16%
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%
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%
Gartmore GVIT – Small Cap Value Fund – Class I
2006	1.30%	1,840		22.711726		41,790	0.43%	15.78%
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%
Gartmore GVIT – Small Company Fund – Class I
2006	1.30%	816		36.787497		30,019	0.11%	10.60%
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%
Gartmore GVIT – Turner GVIT 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%
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 GVIT 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%
Janus Aspen Series – 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%
Janus Aspen Series – 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%
Janus Aspen Series – 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%

(Continued)

98

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 Advisers Management Trust – Growth Portfolio® – Class I
2006	1.30%	1,860	$	28.970099	$	53,884	0.00%	12.60%
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%
Neuberger Berman Advisers Management Trust – 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%
Neuberger Berman Advisers Management Trust – Limited Maturity Bond Portfolio – Class I
2006	1.30%	492		18.678278		9,190	3.06%	2.86%
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%
Neuberger Berman Advisers Management Trust – Partners Portfolio® – Class I
2006	1.30%	190		35.184666		6,685	0.71%	10.80%
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%
Oppenheimer Variable Account Funds – Oppenheimer Balanced Fund/VA – Non-Service Shares
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%
Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA – Non-Service Shares
2006	1.30%	1,892		16.515549		31,247	0.38%	6.56%
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%
Oppenheimer Variable Account Funds – Oppenheimer Core Bond Fund/VA – Non-Service Shares
2006	1.30%	952		25.434609		24,214	5.20%	3.92%
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%
Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA – Non-Service Shares
2006	1.30%	3,734		42.577872		158,986	1.04%	16.18%
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%
Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA – Non-Service Shares
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%
Oppenheimer Variable Account Funds – Oppenheimer Mid Cap Fund/VA – Non-Service Shares
2006	1.30%	5,116		6.194874		31,693	0.00%	1.63%
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%
Strong Variable Insurance Funds, Inc. – Strong International Stock Fund II
2002	1.30%	28,207		5.494908		154,995	4.04%	-27.49%

(Continued)

99

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 Worldwide Insurance Trust – Worldwide Bond Fund – Initial Class
2006	1.30	%	710	$	20.988551	$	14,902	8.51	%	5.11%
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%
Van Eck Worldwide Insurance Trust – 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%
Van Eck Worldwide Insurance Trust – 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%
Van Kampen – The Universal Institutional Funds, Inc. – 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%
Van Kampen – The Universal Institutional Funds, Inc. – 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%
Wells Fargo Advantage Variable Trust FundsSM – Wells Fargo Advantage VT Discovery FundSM
2006	1.30	%	468		34.057941		15,939	0.00	%	13.17%
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%
Wells Fargo Advantage Variable Trust FundsSM – Wells Fargo Advantage VT Opportunity FundSM
2006	1.30	%	448		52.395225		23,473	0.00	%	10.77%
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%
Contract Owners’ Equity Total By Year
2006						$	980,827,120
2005						$	929,399,760
2004						$	915,627,476
2003						$	881,562,186
2002						$	727,023,336

*	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.

100

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 Accounts”)) as of December 31, 2006, and the related statements of operations and changes in contract owners’ equity, and the financial highlights for each of the periods indicated herein. These financial statements and financial highlights are the responsibility of the Accounts’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2006, by correspondence with the transfer agents of the underlying mutual funds. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Accounts as of December 31, 2006, and the results of their operations, changes in contract owners’ equity, and financial highlights for each of the periods indicated herein, in conformity with U.S. generally accepted accounting principles.

/s/ KPMG LLP

Columbus, Ohio

March 9, 2007

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NATIONWIDE LIFE INSURANCE COMPANY

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