NATIONWIDE

VLI SEPARATE

ACCOUNT-2

Annual Report

to

Contract Owners

December 31, 2008

NATIONWIDE LIFE INSURANCE COMPANY

HOME OFFICE: COLUMBUS, OHIO

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2008

Assets:
Investments at fair value:
AIM VIF - Basic Value Fund - Series I (AVBVI)
59,804 shares (cost $576,999 )	$	245,198
AIM VIF - Capital Appreciation Fund - Series I (AVCA)
4,063 shares (cost $105,071 )		68,623
AIM VIF - Capital Development Fund - Series I (AVCDI)
22,053 shares (cost $343,541 )		174,883
AllianceBernstein VPS - Growth and Income Portfolio - Class A (ALVGIA)
40,093 shares (cost $955,040 )		525,220
AllianceBernstein VPS - Small-Mid Cap Value Portfolio - Class A (ALVSVA)
55,558 shares (cost $1,007,067 )		551,136
American Century VP - Balanced Fund - Class I (ACVB)
767,611 shares (cost $4,971,997 )		4,052,988
American Century VP - Capital Appreciation Fund - Class I (ACVCA)
1,228,797 shares (cost $11,371,696 )		9,756,647
American Century VP - Income & Growth Fund - Class I (ACVIG)
368,777 shares (cost $2,677,356 )		1,777,506
American Century VP - Inflation Protection Fund - Class II (ACVIP2)
151,743 shares (cost $1,571,887 )		1,502,258
American Century VP - International Fund - Class I (ACVI)
689,590 shares (cost $4,891,712 )		4,096,166
American Century VP - International Fund - Class III (ACVI3)
338,748 shares (cost $3,293,400 )		2,012,162
American Century VP - Mid Cap Value Fund - Class I (ACVMV1)
81,388 shares (cost $1,071,140 )		795,972
American Century VP - Ultra(R) Fund - Class I (ACVU1)
50,568 shares (cost $510,214 )		306,441
American Century VP - Value Fund - Class I (ACVV)
1,558,525 shares (cost $11,758,895 )		7,293,897
American Century VP - Vista(SM) Fund - Class I (ACVVS1)
86,213 shares (cost $1,736,946 )		928,511
Credit Suisse Trust - Global Small Cap Portfolio (WVCP)
45,033 shares (cost $622,569 )		331,442
Credit Suisse Trust - International Focus Portfolio (WIEP)
429,884 shares (cost $4,244,958 )		3,942,036
Credit Suisse Trust - Small Cap Core I Portfolio (WSCP)
567,198 shares (cost $7,363,561 )		5,734,371
Dreyfus IP - Small Cap Stock Index Portfolio - Service Class (DVSCS)
101,854 shares (cost $1,673,730 )		1,055,206
Dreyfus Stock Index Fund, Inc. - Initial Class (DSIF)
1,670,928 shares (cost $47,866,430 )		38,397,923
Dreyfus VIF - Appreciation Portfolio - Initial Class (DCAP)
128,186 shares (cost $4,550,047 )		3,702,011
Dreyfus VIF - Developing Leaders Portfolio - Initial Class (DSC)
5,800 shares (cost $201,017 )		110,256
Dreyfus VIF - Growth and Income Portfolio - Initial Class (DGI)
97,441 shares (cost $1,944,644 )		1,293,047

(Continued)

2

NATIONWIDE VLI SEPARATE ACCOUNT-2

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

Federated IS - American Leaders Fund II - Primary Class (FALF)
10,463 shares (cost $173,675 )	$	85,165
Federated IS - Capital Appreciation Fund II - Primary Class (FVCA2P)
8,911 shares (cost $50,246 )		45,444
Federated IS - Market Opportunity Fund II - Service Class (FVMOS)
25,056 shares (cost $249,107 )		250,560
Federated IS - Quality Bond Fund II - Primary Class (FQB)
131,508 shares (cost $1,437,152 )		1,315,083
Fidelity(R) VIP - Equity-Income Portfolio - Initial Class (FEIP)
2,824,727 shares (cost $64,838,676 )		37,229,907
Fidelity(R) VIP - Growth Portfolio - Initial Class (FGP)
1,841,444 shares (cost $78,208,914 )		43,329,187
Fidelity(R) VIP - High Income Portfolio - Initial Class (FHIP)
2,600,598 shares (cost $15,414,180 )		10,298,367
Fidelity(R) VIP - High Income Portfolio - Initial Class R (FHIPR)
446,745 shares (cost $2,432,382 )		1,764,645
Fidelity(R) VIP - Overseas Portfolio - Initial Class (FOP)
653,284 shares (cost $10,178,526 )		7,950,467
Fidelity(R) VIP - Overseas Portfolio - Service Class R (FOSR)
318,260 shares (cost $6,752,755 )		3,850,947
Fidelity(R) VIP II - Asset Manager Portfolio - Initial Class (FAMP)
1,268,255 shares (cost $18,331,456 )		13,075,710
Fidelity(R) VIP II - Contrafund(R) Portfolio - Initial Class (FCP)
2,538,393 shares (cost $65,129,547 )		39,065,863
Fidelity(R) VIP II - Investment Grade Bond Portfolio - Service Class (FIGBS)
265,012 shares (cost $3,250,680 )		3,113,894
Fidelity(R) VIP III - Growth Opportunities Portfolio - Initial Class (FGOP)
193,099 shares (cost $3,108,784 )		1,929,059
Fidelity(R) VIP III - Mid Cap Portfolio - Service Class (FMCS)
324,342 shares (cost $10,251,786 )		5,945,188
Fidelity(R) VIP III - Value Strategies Portfolio - Service Class (FVSS)
129,600 shares (cost $1,512,705 )		637,633
Fidelity(R) VIP IV - Energy Portfolio - Service Class 2 (FNRS2)
259,765 shares (cost $6,045,120 )		2,961,324
Fidelity(R) VIP IV - Freedom Fund 2010 Portfolio - Service Class (FF10S)
72,784 shares (cost $736,424 )		599,009
Fidelity(R) VIP IV - Freedom Fund 2020 Portfolio - Service Class (FF20S)
93,033 shares (cost $1,050,896 )		716,353
Fidelity(R) VIP IV - Freedom Fund 2030 Portfolio - Service Class (FF30S)
60,520 shares (cost $692,890 )		430,905
Franklin Templeton VIP - Developing Markets Securities Fund - Class 3 (FTVDM3)
136,424 shares (cost $1,837,568 )		821,275
Franklin Templeton VIP - Foreign Securities Fund - Class 1 (TIF)
34,549 shares (cost $540,235 )		378,313
Franklin Templeton VIP - Foreign Securities Fund - Class 3 (TIF3)
133,930 shares (cost $2,436,568 )		1,433,054
Franklin Templeton VIP - Founding Funds Allocation Fund - Class 2 (FTVFA2)
1,835 shares (cost $10,833 )		10,296

(Continued)

3

NATIONWIDE VLI SEPARATE ACCOUNT-2

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

Franklin Templeton VIP - Global Income Securities Fund - Class 3 (FTVGI3)
156,877 shares (cost $2,683,962 )	$	2,681,034
Franklin Templeton VIP - Income Securities Fund - Class 2 (FTVIS2)
65,032 shares (cost $1,117,610 )		737,460
Franklin Templeton VIP - Rising Dividends Securities Fund - Class 1 (FTVRDI)
207,019 shares (cost $3,880,432 )		2,889,982
Franklin Templeton VIP - Small Cap Value Securities Fund - Class 1 (FTVSVI)
201,765 shares (cost $3,552,153 )		2,164,942
Janus Aspen Series - Balanced Portfolio - Service Class (JABS)
18,854 shares (cost $547,219 )		447,793
Janus Aspen Series - Forty Portfolio - Service Class (JACAS)
131,239 shares (cost $4,886,140 )		2,981,756
Janus Aspen Series - Global Technology Portfolio - Service Class (JAGTS)
231,828 shares (cost $1,039,697 )		672,302
Janus Aspen Series - INTECH Risk Managed Core Portfolio - Service Class (JARLCS)
12,257 shares (cost $146,158 )		97,076
Janus Aspen Series - International Growth Portfolio - Service Class (JAIGS)
74,308 shares (cost $3,845,805 )		1,932,749
Janus Aspen Series - International Growth Portfolio - Service II Class (JAIGS2)
111,792 shares (cost $6,187,792 )		2,923,358
Lehman Brothers AMT - Short Duration Bond Portfolio - I Class (AMTB)
258,824 shares (cost $3,290,660 )		2,772,001
MFS(R) VIT - Investors Growth Stock Series - Initial Class (MIGIC)
20,817 shares (cost $202,647 )		147,804
MFS(R) VIT - Value Series - Initial Class (MVFIC)
155,150 shares (cost $2,153,410 )		1,514,262
Nationwide VIT - American Funds Asset Allocation Fund - Class II (GVAAA2)
71,999 shares (cost $1,302,889 )		936,708
Nationwide VIT - American Funds Bond Fund - Class II (GVABD2)
121,698 shares (cost $1,336,382 )		1,159,784
Nationwide VIT - American Funds Global Growth Fund - Class II (GVAGG2)
71,913 shares (cost $1,669,934 )		1,074,378
Nationwide VIT - American Funds Growth Fund - Class II (GVAGR2)
29,784 shares (cost $1,929,060 )		1,100,527
Nationwide VIT - American Funds Growth-Income Fund - Class II (GVAGI2)
22,141 shares (cost $873,376 )		581,198
Nationwide VIT - Cardinal Aggressive Fund - Class I (NVCRA1)
19,028 shares (cost $131,404 )		125,017
Nationwide VIT - Cardinal Balanced Fund - Class I (NVCRB1)
13,000 shares (cost $113,731 )		105,564
Nationwide VIT - Cardinal Capital Appreciation Fund - Class I (NVCCA1)
19,266 shares (cost $195,230 )		143,147
Nationwide VIT - Cardinal Conservative Fund - Class I (NVCCN1)
5,440 shares (cost $52,807 )		49,617
Nationwide VIT - Cardinal Moderate Fund - Class I (NVCMD1)
48,462 shares (cost $450,138 )		377,033
Nationwide VIT - Cardinal Moderately Aggressive Fund - Class I (NVCMA1)
12,002 shares (cost $106,397 )		84,977

(Continued)

4

NATIONWIDE VLI SEPARATE ACCOUNT-2

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

Nationwide VIT - Cardinal Moderately Conservative Fund - Class I (NVCMC1)
7,659 shares (cost $64,648 )	$	64,870
Nationwide VIT - Core Bond Fund - Class I (NVCBD1)
1,687 shares (cost $16,272 )		16,347
Nationwide VIT - Federated High Income Bond Fund - Class I (HIBF)
22,640 shares (cost $173,604 )		112,973
Nationwide VIT - Federated High Income Bond Fund - Class III (HIBF3)
141,651 shares (cost $992,165 )		705,424
Nationwide VIT - Gartmore Emerging Markets Fund - Class I (GEM)
139,724 shares (cost $2,241,697 )		985,055
Nationwide VIT - Gartmore Emerging Markets Fund - Class III (GEM3)
399,802 shares (cost $7,144,716 )		2,810,606
Nationwide VIT - Gartmore Global Utilities Fund - Class I (GVGU1)
147,550 shares (cost $1,794,071 )		1,147,941
Nationwide VIT - Gartmore International Equity Fund - Class I (GIG)
154,692 shares (cost $1,899,937 )		966,823
Nationwide VIT - Gartmore International Equity Fund - Class III (GIG3)
3,589 shares (cost $36,879 )		22,469
Nationwide VIT - Global Financial Services Fund - Class I (GVGF1)
65,671 shares (cost $669,257 )		376,298
Nationwide VIT - Government Bond Fund - Class I (GBF)
1,313,226 shares (cost $15,327,873 )		15,771,840
Nationwide VIT - Growth Fund - Class I (CAF)
1,100,505 shares (cost $12,732,208 )		9,750,470
Nationwide VIT - Health Sciences Fund - Class I (GVGH1)
44,551 shares (cost $471,445 )		359,976
Nationwide VIT - Health Sciences Fund - Class III (GVGHS)
73,808 shares (cost $749,341 )		597,846
Nationwide VIT - International Index Fund - Class VI (GVIX6)
42,733 shares (cost $474,239 )		276,052
Nationwide VIT - Investor Destinations Aggressive Fund - Class II (GVIDA)
304,651 shares (cost $3,856,413 )		2,099,042
Nationwide VIT - Investor Destinations Conservative Fund - Class II (GVIDC)
95,291 shares (cost $959,148 )		883,344
Nationwide VIT - Investor Destinations Moderate Fund - Class II (GVIDM)
526,462 shares (cost $6,093,659 )		4,453,872
Nationwide VIT - Investor Destinations Moderately Aggressive Fund - Class II (GVDMA)
618,651 shares (cost $7,454,062 )		4,924,465
Nationwide VIT - Investor Destinations Moderately Conservative Fund - Class II (GVDMC)
262,670 shares (cost $2,885,385 )		2,324,628
Nationwide VIT - Lehman Brothers Core Plus Bond Fund - Class I (NVLCP1)
17 shares (cost $166 )		167
Nationwide VIT - Mid Cap Growth Fund - Class I (SGRF)
27,850 shares (cost $788,141 )		488,216
Nationwide VIT - Mid Cap Index Fund - Class I (MCIF)
333,956 shares (cost $5,671,149 )		3,757,001
Nationwide VIT - Money Market Fund - Class I (SAM)
36,640,518 shares (cost $36,640,518 )		36,640,518

(Continued)

5

NATIONWIDE VLI SEPARATE ACCOUNT-2

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

Nationwide VIT - Multi-Manager International Growth Fund - Class III (NVMIG3)
227 shares (cost $1,462 )	$	1,457
Nationwide VIT - Multi-Manager International Value Fund - Class I (GVDIVI)
36,322 shares (cost $546,750 )		280,768
Nationwide VIT - Multi-Manager International Value Fund - Class III (GVDIV3)
116,721 shares (cost $1,911,216 )		898,751
Nationwide VIT - Multi-Manager Large Cap Growth Fund - Class I (NVMLG1)
195 shares (cost $1,896 )		1,316
Nationwide VIT - Multi-Manager Large Cap Value Fund - Class I (NVMLV1)
14,267 shares (cost $100,918 )		94,448
Nationwide VIT - Multi-Manager Mid Cap Growth Fund - Class I (NVMMG1)
243 shares (cost $2,212 )		1,603
Nationwide VIT - Multi-Manager Small Cap Growth Fund - Class I (SCGF)
91,007 shares (cost $1,463,329 )		878,221
Nationwide VIT - Multi-Manager Small Cap Value Fund - Class I (SCVF)
747,847 shares (cost $8,807,868 )		4,950,747
Nationwide VIT - Multi-Manager Small Company Fund - Class I (SCF)
1,394,560 shares (cost $28,239,414 )		15,005,460
Nationwide VIT - Nationwide Fund - Class I (TRF)
6,079,673 shares (cost $72,001,633 )		39,639,470
Nationwide VIT - Nationwide Leaders Fund - Class I (GVUS1)
45,842 shares (cost $612,006 )		296,601
Nationwide VIT - Neuberger Berman Multi-Cap Opportunities Fund - Class I (NVNMO1)
160 shares (cost $1,620 )		884
Nationwide VIT - Neuberger Berman Socially Responsible Fund - Class I (NVNSR1)
67 shares (cost $423 )		428
Nationwide VIT - Short Term Bond Fund - Class II (NVSTB2)
2,829 shares (cost $27,852 )		27,636
Nationwide VIT - Technology and Communications Fund - Class I (GGTC)
84,555 shares (cost $320,816 )		188,558
Nationwide VIT - Technology and Communications Fund - Class III (GGTC3)
99,675 shares (cost $408,597 )		224,268
Nationwide VIT - U.S. Growth Leaders Fund - Class I (GVUG1)
86,692 shares (cost $941,340 )		516,681
Nationwide VIT - Van Kampen Comstock Value Fund - Class I (EIF)
73,283 shares (cost $865,937 )		512,247
Nationwide VIT - Van Kampen Multi-Sector Bond Fund - Class I (MSBF)
127,386 shares (cost $1,223,458 )		932,465
Nationwide VIT - Van Kampen Real Estate Fund - Class I (NVRE1)
10,533 shares (cost $89,188 )		60,144
Neuberger Berman AMT - Balanced Portfolio - Class I (AMBP)
24,178 shares (cost $299,465 )		183,271
Neuberger Berman AMT - Growth Portfolio - Class I (AMTG)
898,381 shares (cost $9,565,489 )		9,765,399
Neuberger Berman AMT - Guardian Portfolio - Class I (AMGP)
84,035 shares (cost $1,263,086 )		1,046,241
Neuberger Berman AMT - International Portfolio - Class S (AMINS)
26,242 shares (cost $370,305 )		191,304

(Continued)

6

NATIONWIDE VLI SEPARATE ACCOUNT-2

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

Neuberger Berman AMT - Mid Cap Growth Portfolio - Class S (AMMCGS)
20,531 shares (cost $534,404 )	$	326,233
Neuberger Berman AMT - Partners Portfolio - Class I (AMTP)
1,704,084 shares (cost $24,709,006 )		12,116,036
Neuberger Berman AMT - Regency Portfolio - Class S (AMRS)
14,838 shares (cost $251,071 )		136,803
Neuberger Berman AMT - Small Cap Growth Portfolio - Class S (AMFAS)
9,642 shares (cost $134,009 )		80,514
Neuberger Berman AMT - Socially Responsive Portfolio - Class I (AMSRS)
26,784 shares (cost $402,191 )		251,502
Oppenheimer VAF - Balanced Fund - Non-Service Class (OVMS)
748,172 shares (cost $11,264,559 )		6,322,055
Oppenheimer VAF - Capital Appreciation Fund - Non-Service Class (OVGR)
200,038 shares (cost $6,742,505 )		5,134,964
Oppenheimer VAF - Core Bond Fund - Non-Service Class (OVB)
885,231 shares (cost $9,703,343 )		5,709,742
Oppenheimer VAF - Global Securities Fund - Class 3 (OVGS3)
245,537 shares (cost $8,217,915 )		4,994,229
Oppenheimer VAF - Global Securities Fund - Non-Service Class (OVGS)
781,694 shares (cost $19,535,227 )		15,798,039
Oppenheimer VAF - High Income Fund - Class 3 (OVHI3)
32,815 shares (cost $166,338 )		51,520
Oppenheimer VAF - High Income Fund - Non-Service Class (OVHI)
42,026 shares (cost $333,944 )		66,401
Oppenheimer VAF - Main Street Small Cap Fund(R) - Non-Service Class (OVSC)
47,465 shares (cost $878,341 )		505,505
Oppenheimer VAF - Main Street(R) - Non-Service Class (OVGI)
74,417 shares (cost $1,671,371 )		1,083,516
Oppenheimer VAF - Mid Cap Fund - Non-Service Class (OVAG)
21,943 shares (cost $1,045,956 )		604,302
Putnam VT - Growth and Income Fund - Class IB (PVGIB)
4,068 shares (cost $87,342 )		46,665
Putnam VT - International Equity Fund - Class IB (PVTIGB)
27,063 shares (cost $486,798 )		240,589
Putnam VT - Voyager Fund - Class IB (PVTVB)
1,776 shares (cost $49,927 )		35,490
T. Rowe Price Blue Chip Growth Portfolio - II (TRBCG2)
78,593 shares (cost $837,252 )		526,570
T. Rowe Price Equity Income Portfolio - II (TREI2)
65,514 shares (cost $1,546,486 )		937,506
T. Rowe Price Limited Term Bond Portfolio - Class II (TRLT2)
310,775 shares (cost $1,539,165 )		1,501,042
The Dreyfus Socially Responsible Growth Fund, Inc. - Initial Shares (DSRG)
252,873 shares (cost $7,651,387 )		5,022,048
Van Eck Worldwide Insurance Trust - Bond Fund - Initial Class (VWBF)
276,383 shares (cost $3,216,780 )		3,183,934
Van Eck Worldwide Insurance Trust - Emerging Markets Fund - Initial Class (VWEM)
659,789 shares (cost $11,625,110 )		3,879,560

(Continued)

7

NATIONWIDE VLI SEPARATE ACCOUNT-2

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

Van Eck Worldwide Insurance Trust - Hard Assets Fund - Initial Class (VWHA)
392,263 shares (cost $13,350,801 )	$	7,354,923
Van Kampen UIF - Core Plus Fixed Income Portfolio - Class I (MSVFI)
77,018 shares (cost $869,601 )		763,248
Van Kampen UIF - Emerging Markets Debt Portfolio - Class I (MSEM)
245,236 shares (cost $2,020,593 )		1,586,677
Van Kampen UIF - U.S. Real Estate Portfolio - Class I (MSVRE)
1,034,192 shares (cost $19,185,863 )		8,490,713
Wells Fargo AVT - Discovery Fund(SM) (SVDF)
418,629 shares (cost $5,307,938 )		4,684,457
Wells Fargo AVT - Opportunity Fund(SM) (SVOF)
1,632,161 shares (cost $29,966,173 )		16,582,760
Total Investments		566,844,171
Total Assets		566,844,171
Accounts Payable - Nationwide VIT - Lehman Brothers Core Plus Bond Fund - Class I (NVLCP1)		8
Other Payables		17,445
	$	566,826,718
Contract Owners’ Equity:
Accumulation units		566,826,718
Total Contract Owners’ Equity (note 8)	$	566,826,718

See accompanying notes to financial statements.

8

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS

Year Ended December 31, 2008

Investment Activity:	Total			AVBVI		AVCA		AVCDI		ALVGIA		ALVSVA		ACVB		ACVCA
Reinvested dividends	$	14,550,684		3,602		-		-		15,385		6,286		108,117		-
Asset charges (note 3)		(4,543,800	)	(2,375	)	(762	)	(1,714	)	(2,835	)	(4,089	)	(25,536	)	(95,659	)
Net investment income (loss)		10,006,884		1,227		(762	)	(1,714	)	12,550		2,197		82,581		(95,659	)
Proceeds from mutual fund shares sold		182,227,830		441,174		392,815		461,835		185,746		344,154		637,149		3,632,768
Cost of mutual fund shares sold		(197,510,357	)	(534,683	)	(433,016	)	(535,127	)	(237,073	)	(403,147	)	(629,480	)	(2,315,568	)
Realized gain (loss) on investments		(15,282,527	)	(93,509	)	(40,201	)	(73,292	)	(51,327	)	(58,993	)	7,669		1,317,200
Change in unrealized gain (loss) on investments		(426,828,784	)	(282,847	)	(41,973	)	(169,220	)	(467,959	)	(358,078	)	(1,472,594	)	(11,600,631	)
Net gain (loss) on investments		(442,111,311	)	(376,356	)	(82,174	)	(242,512	)	(519,286	)	(417,071	)	(1,464,925	)	(10,283,431	)
Reinvested capital gains		59,451,887		77,915		-		35,053		130,982		89,366		313,273		1,295,445
Net increase (decrease) in contract owners’ equity resulting from operations	$	(372,652,540	)	(297,214	)	(82,936	)	(209,173	)	(375,754	)	(325,508	)	(1,069,071	)	(9,083,645	)
Investment Activity:	ACVIG			ACVIP2		ACVI		ACVI3		ACVMV1		ACVU1		ACVV		ACVVS1
Reinvested dividends	$	50,140		75,127		59,267		23,720		928		-		234,548		-
Asset charges (note 3)		(12,135	)	(6,885	)	(37,286	)	(15,089	)	(5,048	)	(2,632	)	(48,302	)	(7,845	)
Net investment income (loss)		38,005		68,242		21,981		8,631		(4,120	)	(2,632	)	186,246		(7,845	)
Proceeds from mutual fund shares sold		335,967		1,261,432		1,582,266		351,109		393,206		745,640		2,121,259		433,697
Cost of mutual fund shares sold		(290,606	)	(1,303,530	)	(895,820	)	(384,689	)	(486,079	)	(759,575	)	(2,863,003	)	(542,319	)
Realized gain (loss) on investments		45,361		(42,098	)	686,446		(33,580	)	(92,873	)	(13,935	)	(741,744	)	(108,622	)
Change in unrealized gain (loss) on investments		(1,375,307	)	(91,919	)	(5,145,468	)	(1,927,700	)	(191,264	)	(311,349	)	(3,596,820	)	(895,565	)
Net gain (loss) on investments		(1,329,946	)	(134,017	)	(4,459,022	)	(1,961,280	)	(284,137	)	(325,284	)	(4,338,564	)	(1,004,187	)
Reinvested capital gains		300,385		-		696,172		278,631		-		78,593		1,245,215		74,587
Net increase (decrease) in contract owners’ equity resulting from operations	$	(991,556	)	(65,775	)	(3,740,869	)	(1,674,018	)	(288,257	)	(249,323	)	(2,907,103	)	(937,445	)

(Continued)

9

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2008

Investment Activity:	WVCP			WIEP		WSCP		DVSCS		DSIF		DCAP		DSC		DGI
Reinvested dividends	$	9,466		100,738		6,524		13,102		1,152,220		94,274		1,338		12,142
Asset charges (note 3)		(2,723	)	(30,929	)	(43,532	)	(7,513	)	(290,402	)	(26,798	)	(836	)	(9,010	)
Net investment income (loss)		6,743		69,809		(37,008	)	5,589		861,818		67,476		502		3,132
Proceeds from mutual fund shares sold		98,421		796,925		1,208,198		464,111		9,295,437		482,269		56,181		146,256
Cost of mutual fund shares sold		(101,808	)	(524,560	)	(827,405	)	(592,226	)	(9,972,399	)	(439,972	)	(86,611	)	(127,720	)
Realized gain (loss) on investments		(3,387	)	272,365		380,793		(128,115	)	(676,962	)	42,297		(30,430	)	18,536
Change in unrealized gain (loss) on investments		(311,364	)	(3,273,541	)	(3,562,897	)	(642,274	)	(24,590,637	)	(2,098,237	)	(36,247	)	(1,161,371	)
Net gain (loss) on investments		(314,751	)	(3,001,176	)	(3,182,104	)	(770,389	)	(25,267,599	)	(2,055,940	)	(66,677	)	(1,142,835	)
Reinvested capital gains		-		-		-		226,751		-		351,174		8,018		229,922
Net increase (decrease) in contract owners’ equity resulting from operations	$	(308,008	)	(2,931,367	)	(3,219,112	)	(538,049	)	(24,405,781	)	(1,637,290	)	(58,157	)	(909,781	)
Investment Activity:	FALF			FVCA2P		FVMOS		FQB		FEIP		FGP		FHIP		FHIPR
Reinvested dividends	$	1,974		48		2,191		70,470		1,382,547		558,467		1,118,782		167,303
Asset charges (note 3)		(583	)	(131	)	(478	)	(8,298	)	(320,300	)	(414,021	)	(74,106	)	(8,672	)
Net investment income (loss)		1,391		(83	)	1,713		62,172		1,062,247		144,446		1,044,676		158,631
Proceeds from mutual fund shares sold		12,154		16,695		152,247		505,531		7,467,973		8,457,234		2,757,272		504,291
Cost of mutual fund shares sold		(18,526	)	(18,628	)	(159,052	)	(534,750	)	(8,903,302	)	(11,019,961	)	(3,182,327	)	(589,803	)
Realized gain (loss) on investments		(6,372	)	(1,933	)	(6,805	)	(29,219	)	(1,435,329	)	(2,562,727	)	(425,055	)	(85,512	)
Change in unrealized gain (loss) on investments		(70,329	)	(4,817	)	1,426		(151,981	)	(29,497,045	)	(38,836,729	)	(4,147,025	)	(534,596	)
Net gain (loss) on investments		(76,701	)	(6,750	)	(5,379	)	(181,200	)	(30,932,374	)	(41,399,456	)	(4,572,080	)	(620,108	)
Reinvested capital gains		30,551		292		-		-		60,582		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations	$	(44,759	)	(6,541	)	(3,666	)	(119,028	)	(29,809,545	)	(41,255,010	)	(3,527,404	)	(461,477	)

(Continued)

10

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2008

Investment Activity:	FOP			FOSR		FAMP		FCP		FIGBS		FGOP		FMCS		FVSS
Reinvested dividends	$	317,536		145,706		460,326		567,239		151,748		14,057		30,609		7,281
Asset charges (note 3)		(73,244	)	(27,025	)	(108,300	)	(319,782	)	(16,373	)	(18,662	)	(45,288	)	(5,174	)
Net investment income (loss)		244,292		118,681		352,026		247,457		135,375		(4,605	)	(14,679	)	2,107
Proceeds from mutual fund shares sold		2,453,243		602,938		3,056,582		7,465,625		1,532,761		493,181		1,704,971		298,190
Cost of mutual fund shares sold		(1,611,233	)	(732,058	)	(3,904,355	)	(9,174,065	)	(1,583,406	)	(404,362	)	(2,037,975	)	(454,841	)
Realized gain (loss) on investments		842,010		(129,120	)	(847,773	)	(1,708,440	)	(50,645	)	88,819		(333,004	)	(156,651	)
Change in unrealized gain (loss) on investments		(9,754,261	)	(3,608,460	)	(7,205,671	)	(31,467,403	)	(200,795	)	(2,525,563	)	(5,204,756	)	(780,745	)
Net gain (loss) on investments		(8,912,251	)	(3,737,580	)	(8,053,444	)	(33,175,843	)	(251,440	)	(2,436,744	)	(5,537,760	)	(937,396	)
Reinvested capital gains		1,659,711		603,345		1,825,304		1,775,353		2,999		-		1,450,355		238,185
Net increase (decrease) in contract owners’ equity resulting from operations	$	(7,008,248	)	(3,015,554	)	(5,876,114	)	(31,153,033	)	(113,066	)	(2,441,349	)	(4,102,084	)	(697,104	)
Investment Activity:	FNRS2			FF10S		FF20S		FF30S		FTVDM3		TIF		TIF3		FTVFA2
Reinvested dividends	$	-		20,327		23,257		12,974		51,291		16,961		51,665		297
Asset charges (note 3)		(32,398	)	(3,978	)	(3,666	)	(3,830	)	(9,348	)	(2,960	)	(9,262	)	(9	)
Net investment income (loss)		(32,398	)	16,349		19,591		9,144		41,943		14,001		42,403		288
Proceeds from mutual fund shares sold		2,405,743		698,971		85,579		451,924		1,539,177		145,513		523,687		192
Cost of mutual fund shares sold		(2,489,789	)	(806,051	)	(101,068	)	(515,211	)	(1,724,386	)	(145,855	)	(509,917	)	(297	)
Realized gain (loss) on investments		(84,046	)	(107,080	)	(15,489	)	(63,287	)	(185,209	)	(342	)	13,770		(105	)
Change in unrealized gain (loss) on investments		(4,157,163	)	(120,059	)	(354,048	)	(263,829	)	(1,423,821	)	(376,971	)	(1,292,270	)	(537	)
Net gain (loss) on investments		(4,241,209	)	(227,139	)	(369,537	)	(327,116	)	(1,609,030	)	(377,313	)	(1,278,500	)	(642	)
Reinvested capital gains		211,141		33,809		43,814		44,634		372,119		61,369		199,441		295
Net increase (decrease) in contract owners’ equity resulting from operations	$	(4,062,466	)	(176,981	)	(306,132	)	(273,338	)	(1,194,968	)	(301,943	)	(1,036,656	)	(59	)

(Continued)

11

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2008

Investment Activity:	FTVGI3			FTVIS2		FTVRDI		FTVSVI		JABS		JACAS		JAGTS		JARLCS
Reinvested dividends	$	105,325		56,961		71,142		40,891		14,826		509		1,011		858
Asset charges (note 3)		(11,931	)	(5,334	)	(17,534	)	(15,178	)	(2,708	)	(24,098	)	(5,267	)	(619	)
Net investment income (loss)		93,394		51,627		53,608		25,713		12,118		(23,589	)	(4,256	)	239
Proceeds from mutual fund shares sold		1,518,915		399,614		585,811		576,003		775,683		1,641,630		397,094		28,135
Cost of mutual fund shares sold		(1,468,848	)	(464,416	)	(597,891	)	(598,005	)	(853,567	)	(1,239,288	)	(327,106	)	(36,637	)
Realized gain (loss) on investments		50,067		(64,802	)	(12,080	)	(22,002	)	(77,884	)	402,342		69,988		(8,502	)
Change in unrealized gain (loss) on investments		(67,057	)	(360,161	)	(1,132,566	)	(1,291,291	)	(113,967	)	(2,952,629	)	(654,669	)	(54,132	)
Net gain (loss) on investments		(16,990	)	(424,963	)	(1,144,646	)	(1,313,293	)	(191,851	)	(2,550,287	)	(584,681	)	(62,634	)
Reinvested capital gains		-		23,851		26,328		221,202		45,702		-		-		7,105
Net increase (decrease) in contract owners’ equity resulting from operations	$	76,404		(349,485	)	(1,064,710	)	(1,066,378	)	(134,031	)	(2,573,876	)	(588,937	)	(55,290	)
Investment Activity:	JAIGS			JAIGS2		AMTB		MIGIC		MVFIC		GVAAA2		GVABD2		GVAGG2
Reinvested dividends	$	103,584		150,310		149,722		1,150		16,855		29,030		66,108		39,651
Asset charges (note 3)		(19,044	)	(27,506	)	(17,175	)	(1,114	)	(8,152	)	(5,047	)	(6,228	)	(7,285	)
Net investment income (loss)		84,540		122,804		132,547		36		8,703		23,983		59,880		32,366
Proceeds from mutual fund shares sold		1,166,813		1,920,894		1,204,333		36,733		587,634		258,166		661,135		272,684
Cost of mutual fund shares sold		(1,103,392	)	(2,029,996	)	(1,284,683	)	(37,082	)	(708,052	)	(318,684	)	(724,302	)	(329,310	)
Realized gain (loss) on investments		63,421		(109,102	)	(80,350	)	(349	)	(120,418	)	(60,518	)	(63,167	)	(56,626	)
Change in unrealized gain (loss) on investments		(3,103,948	)	(4,262,223	)	(532,398	)	(101,581	)	(690,613	)	(373,002	)	(145,166	)	(716,844	)
Net gain (loss) on investments		(3,040,527	)	(4,371,325	)	(612,748	)	(101,930	)	(811,031	)	(433,520	)	(208,333	)	(773,470	)
Reinvested capital gains		555,219		806,091		-		9,401		56,873		14,350		1,035		49,565
Net increase (decrease) in contract owners’ equity resulting from operations	$	(2,400,768	)	(3,442,430	)	(480,201	)	(92,493	)	(745,455	)	(395,187	)	(147,418	)	(691,539	)

(Continued)

12

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2008

Investment Activity:	GVAGR2			GVAGI2		NVCRA1		NVCRB1		NVCCA1		NVCCN1		NVCMD1		NVCMA1
Reinvested dividends	$	30,964		16,145		673		1,334		2,312		633		4,543		1,025
Asset charges (note 3)		(7,967	)	(3,335	)	(119	)	(375	)	(509	)	(105	)	(938	)	(215	)
Net investment income (loss)		22,997		12,810		554		959		1,803		528		3,605		810
Proceeds from mutual fund shares sold		405,110		126,864		133		226,263		31,267		15,580		43,701		10,978
Cost of mutual fund shares sold		(402,243	)	(173,552	)	(208	)	(260,104	)	(32,736	)	(15,759	)	(49,706	)	(11,802	)
Realized gain (loss) on investments		2,867		(46,688	)	(75	)	(33,841	)	(1,469	)	(179	)	(6,005	)	(824	)
Change in unrealized gain (loss) on investments		(920,627	)	(282,018	)	(6,387	)	(8,167	)	(52,084	)	(3,190	)	(73,105	)	(21,419	)
Net gain (loss) on investments		(917,760	)	(328,706	)	(6,462	)	(42,008	)	(53,553	)	(3,369	)	(79,110	)	(22,243	)
Reinvested capital gains		88,613		239		2,722		518		1,368		85		2,532		956
Net increase (decrease) in contract owners’ equity resulting from operations	$	(806,150	)	(315,657	)	(3,186	)	(40,531	)	(50,382	)	(2,756	)	(72,973	)	(20,477	)
Investment Activity:	NVCMC1			NVCBD1		HIBF		HIBF3		GEM		GEM3		GVGU1		GIG
Reinvested dividends	$	539		274		15,222		84,075		23,965		66,013		51,361		22,206
Asset charges (note 3)		(36	)	(18	)	(594	)	(4,223	)	(15,075	)	(28,623	)	(9,447	)	(11,015	)
Net investment income (loss)		503		256		14,628		79,852		8,890		37,390		41,914		11,191
Proceeds from mutual fund shares sold		922		4,385		40,195		587,492		1,183,630		2,382,419		992,423		1,149,009
Cost of mutual fund shares sold		(1,070	)	(4,543	)	(51,603	)	(680,244	)	(816,204	)	(2,418,517	)	(1,214,114	)	(1,294,134	)
Realized gain (loss) on investments		(148	)	(158	)	(11,408	)	(92,752	)	367,426		(36,098	)	(221,691	)	(145,125	)
Change in unrealized gain (loss) on investments		223		75		(54,160	)	(254,774	)	(2,413,728	)	(5,531,866	)	(522,176	)	(1,093,489	)
Net gain (loss) on investments		75		(83	)	(65,568	)	(347,526	)	(2,046,302	)	(5,567,964	)	(743,867	)	(1,238,614	)
Reinvested capital gains		192		-		-		-		409,664		1,178,652		21,235		237,212
Net increase (decrease) in contract owners’ equity resulting from operations	$	770		173		(50,940	)	(267,674	)	(1,627,748	)	(4,351,922	)	(680,718	)	(990,211	)

(Continued)

13

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2008

Investment Activity:	GIG3			GVGF1		GBF		CAF		GVGH1		GVGHS		GVIX6		GVIDA
Reinvested dividends	$	283		11,832		568,718		38,147		1,078		1,465		8,191		68,097
Asset charges (note 3)		(40	)	(3,765	)	(76,294	)	(83,897	)	(2,768	)	(2,517	)	(2,034	)	(19,513	)
Net investment income (loss)		243		8,067		492,424		(45,750	)	(1,690	)	(1,052	)	6,157		48,584
Proceeds from mutual fund shares sold		7,538		404,987		2,359,236		1,532,903		167,057		517,585		43,898		1,121,754
Cost of mutual fund shares sold		(13,530	)	(654,371	)	(2,482,431	)	(2,570,364	)	(166,794	)	(598,352	)	(52,760	)	(1,244,795	)
Realized gain (loss) on investments		(5,992	)	(249,384	)	(123,195	)	(1,037,461	)	263		(80,767	)	(8,862	)	(123,041	)
Change in unrealized gain (loss) on investments		(14,411	)	(131,228	)	567,500		(5,462,625	)	(149,340	)	(176,458	)	(205,696	)	(1,906,004	)
Net gain (loss) on investments		(20,403	)	(380,612	)	444,305		(6,500,086	)	(149,077	)	(257,225	)	(214,558	)	(2,029,045	)
Reinvested capital gains		5,376		-		-		-		32,434		58,100		575		518,286
Net increase (decrease) in contract owners’ equity resulting from operations	$	(14,784	)	(372,545	)	936,729		(6,545,836	)	(118,333	)	(200,177	)	(207,826	)	(1,462,175	)
Investment Activity:	GVIDC			GVIDM		GVDMA		GVDMC		NVLCP1		SGRF		MCIF		SAM
Reinvested dividends	$	29,662		167,273		164,405		77,644		3		-		67,723		753,089
Asset charges (note 3)		(4,929	)	(31,504	)	(37,984	)	(17,381	)	-		(4,548	)	(27,928	)	(183,961	)
Net investment income (loss)		24,733		135,769		126,421		60,263		3		(4,548	)	39,795		569,128
Proceeds from mutual fund shares sold		364,049		1,649,987		836,690		331,719		-		329,689		1,241,477		27,532,044
Cost of mutual fund shares sold		(387,162	)	(1,740,013	)	(931,132	)	(349,312	)	-		(327,931	)	(1,173,350	)	(27,532,044	)
Realized gain (loss) on investments		(23,113	)	(90,026	)	(94,442	)	(17,593	)	-		1,758		68,127		-
Change in unrealized gain (loss) on investments		(73,535	)	(2,081,356	)	(3,196,425	)	(581,692	)	1		(493,174	)	(2,710,007	)	-
Net gain (loss) on investments		(96,648	)	(2,171,382	)	(3,290,867	)	(599,285	)	1		(491,416	)	(2,641,880	)	-
Reinvested capital gains		15,025		493,348		703,320		129,982		-		-		345,867		-
Net increase (decrease) in contract owners’ equity resulting from operations	$	(56,890	)	(1,542,265	)	(2,461,126	)	(409,040	)	4		(495,964	)	(2,256,218	)	569,128

(Continued)

14

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2008

Investment Activity:	NVMIG3			GVDIVI		GVDIV3		NVMLG1		NVMLV1		NVMMG1		SCGF		SCVF
Reinvested dividends	$	1		8,047		25,301		3		557		-		-		78,180
Asset charges (note 3)		(2	)	(2,480	)	(7,729	)	-		(150	)	-		(6,678	)	(35,754	)
Net investment income (loss)		(1	)	5,567		17,572		3		407		-		(6,678	)	42,426
Proceeds from mutual fund shares sold		6		126,000		559,248		760		40,378		11,227		439,536		1,595,353
Cost of mutual fund shares sold		(7	)	(143,065	)	(666,328	)	(805	)	(60,408	)	(12,002	)	(544,895	)	(2,347,065	)
Realized gain (loss) on investments		(1	)	(17,065	)	(107,080	)	(45	)	(20,030	)	(775	)	(105,359	)	(751,712	)
Change in unrealized gain (loss) on investments		(5	)	(328,287	)	(974,551	)	(580	)	(6,469	)	(609	)	(655,281	)	(1,883,749	)
Net gain (loss) on investments		(6	)	(345,352	)	(1,081,631	)	(625	)	(26,499	)	(1,384	)	(760,640	)	(2,635,461	)
Reinvested capital gains		-		67,064		210,461		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations	$	(7	)	(272,721	)	(853,598	)	(622	)	(26,092	)	(1,384	)	(767,318	)	(2,593,035	)
Investment Activity:	SCF			TRF		GVUS1		NVNMO1		NVNSR1		NVSTB2		GGTC		GGTC3
Reinvested dividends	$	180,094		840,953		4,418		-		1		1,325		-		-
Asset charges (note 3)		(111,600	)	(368,569	)	(2,771	)	(6	)	-		(407	)	(2,248	)	(2,068	)
Net investment income (loss)		68,494		472,384		1,647		(6	)	1		918		(2,248	)	(2,068	)
Proceeds from mutual fund shares sold		3,045,570		6,927,576		240,181		40		-		363,691		179,335		611,407
Cost of mutual fund shares sold		(3,368,681	)	(11,473,747	)	(317,877	)	(56	)	-		(368,109	)	(166,690	)	(716,040	)
Realized gain (loss) on investments		(323,111	)	(4,546,171	)	(77,696	)	(16	)	-		(4,418	)	12,645		(104,633	)
Change in unrealized gain (loss) on investments		(14,168,996	)	(35,324,300	)	(276,877	)	(736	)	6		(216	)	(272,283	)	(235,401	)
Net gain (loss) on investments		(14,492,107	)	(39,870,471	)	(354,573	)	(752	)	6		(4,634	)	(259,638	)	(340,034	)
Reinvested capital gains		4,526,102		9,583,600		-		-		-		-		42,632		59,682
Net increase (decrease) in contract owners’ equity resulting from operations	$	(9,897,511	)	(29,814,487	)	(352,926	)	(758	)	7		(3,716	)	(219,254	)	(282,420	)

(Continued)

15

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2008

Investment Activity:	GVUG1			EIF		MSBF		NVRE1		AMBP		AMTG		AMGP		AMINS
Reinvested dividends	$	-		15,185		88,448		1,636		9,480		-		8,337		15
Asset charges (note 3)		(3,941	)	(3,519	)	(7,307	)	(99	)	(1,374	)	(87,788	)	(8,542	)	(1,585	)
Net investment income (loss)		(3,941	)	11,666		81,141		1,537		8,106		(87,788	)	(205	)	(1,570	)
Proceeds from mutual fund shares sold		396,753		192,546		1,085,566		3,310		17,450		1,731,137		196,892		105,981
Cost of mutual fund shares sold		(419,048	)	(245,692	)	(1,180,162	)	(4,987	)	(20,087	)	(918,465	)	(135,760	)	(118,042	)
Realized gain (loss) on investments		(22,295	)	(53,146	)	(94,596	)	(1,677	)	(2,637	)	812,672		61,132		(12,061	)
Change in unrealized gain (loss) on investments		(513,347	)	(305,486	)	(290,565	)	(29,044	)	(122,509	)	(8,858,322	)	(769,048	)	(168,711	)
Net gain (loss) on investments		(535,642	)	(358,632	)	(385,161	)	(30,721	)	(125,146	)	(8,045,650	)	(707,916	)	(180,772	)
Reinvested capital gains		152,707		10,754		28,486		-		-		-		57,134		50
Net increase (decrease) in contract owners’ equity resulting from operations	$	(386,876	)	(336,212	)	(275,534	)	(29,184	)	(117,040	)	(8,133,438	)	(650,987	)	(182,292	)
Investment Activity:	AMMCGS			AMTP		AMRS		AMFAS		AMSRS		OVMS		OVGR		OVB
Reinvested dividends	$	-		111,731		2,197		-		7,399		295,992		12,121		431,005
Asset charges (note 3)		(2,904	)	(105,452	)	(834	)	(480	)	(1,957	)	(60,490	)	(46,877	)	(47,404	)
Net investment income (loss)		(2,904	)	6,279		1,363		(480	)	5,442		235,502		(34,756	)	383,601
Proceeds from mutual fund shares sold		289,852		2,757,762		29,434		13,366		123,475		1,291,343		1,104,159		1,740,528
Cost of mutual fund shares sold		(294,725	)	(2,415,183	)	(51,233	)	(16,433	)	(131,875	)	(1,622,493	)	(765,110	)	(1,947,077	)
Realized gain (loss) on investments		(4,873	)	342,579		(21,799	)	(3,067	)	(8,400	)	(331,150	)	339,049		(206,549	)
Change in unrealized gain (loss) on investments		(290,281	)	(17,653,649	)	(106,389	)	(52,957	)	(191,453	)	(5,786,944	)	(4,853,585	)	(4,036,010	)
Net gain (loss) on investments		(295,154	)	(17,311,070	)	(128,188	)	(56,024	)	(199,853	)	(6,118,094	)	(4,514,536	)	(4,242,559	)
Reinvested capital gains		-		3,525,524		478		4,125		25,299		713,901		-		-
Net increase (decrease) in contract owners’ equity resulting from operations	$	(298,058	)	(13,779,267	)	(126,347	)	(52,379	)	(169,112	)	(5,168,691	)	(4,549,292	)	(3,858,958	)

(Continued)

16

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2008

Investment Activity:	OVGS3			OVGS		OVHI3		OVHI		OVSC		OVGI		OVAG		PVGIB
Reinvested dividends	$	100,046		386,705		6,303		24,710		4,744		23,807		-		2,099
Asset charges (note 3)		(35,984	)	(131,935	)	(567	)	(1,293	)	(3,972	)	(7,011	)	(5,819	)	(457	)
Net investment income (loss)		64,062		254,770		5,736		23,417		772		16,796		(5,819	)	1,642
Proceeds from mutual fund shares sold		649,177		4,639,689		69,356		134,547		407,933		242,624		141,025		45,803
Cost of mutual fund shares sold		(687,920	)	(3,748,811	)	(86,353	)	(174,180	)	(463,455	)	(244,488	)	(143,187	)	(72,191	)
Realized gain (loss) on investments		(38,743	)	890,878		(16,997	)	(39,633	)	(55,522	)	(1,864	)	(2,162	)	(26,388	)
Change in unrealized gain (loss) on investments		(3,833,736	)	(14,677,210	)	(111,625	)	(253,539	)	(354,138	)	(829,089	)	(590,571	)	(28,723	)
Net gain (loss) on investments		(3,872,479	)	(13,786,332	)	(128,622	)	(293,172	)	(409,660	)	(830,953	)	(592,733	)	(55,111	)
Reinvested capital gains		440,445		1,699,138		-		-		52,671		103,443		-		18,045
Net increase (decrease) in contract owners’ equity resulting from operations	$	(3,367,972	)	(11,832,424	)	(122,886	)	(269,755	)	(356,217	)	(710,714	)	(598,552	)	(35,424	)
Investment Activity:	PVTIGB			PVTVB		TRBCG2		TREI2		TRLT2		DSRG		VWBF		VWEM
Reinvested dividends	$	7,866		-		770		29,132		39,166		52,862		296,820		-
Asset charges (note 3)		(2,033	)	(167	)	(3,849	)	(6,903	)	(5,085	)	(41,927	)	(22,892	)	(44,508	)
Net investment income (loss)		5,833		(167	)	(3,079	)	22,229		34,081		10,935		273,928		(44,508	)
Proceeds from mutual fund shares sold		81,543		17,944		311,976		302,236		758,093		808,056		3,103,860		3,221,214
Cost of mutual fund shares sold		(97,247	)	(20,342	)	(374,828	)	(416,009	)	(765,073	)	(1,213,429	)	(3,221,300	)	(3,987,910	)
Realized gain (loss) on investments		(15,704	)	(2,398	)	(62,852	)	(113,773	)	(6,980	)	(405,373	)	(117,440	)	(766,696	)
Change in unrealized gain (loss) on investments		(253,636	)	(22,668	)	(314,438	)	(538,011	)	(40,878	)	(2,397,159	)	(95,471	)	(11,625,758	)
Net gain (loss) on investments		(269,340	)	(25,066	)	(377,290	)	(651,784	)	(47,858	)	(2,802,532	)	(212,911	)	(12,392,454	)
Reinvested capital gains		60,435		-		-		42,804		-		-		-		4,614,460
Net increase (decrease) in contract owners’ equity resulting from operations	$	(203,072	)	(25,233	)	(380,369	)	(586,751	)	(13,777	)	(2,791,597	)	61,017		(7,822,502	)

(Continued)

17

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2008

Investment Activity:	VWHA			MSVFI		MSEM		MSVRE		SVDF		SVOF
Reinvested dividends	$	40,737		39,173		141,454		476,917		-		488,140
Asset charges (note 3)		(88,185	)	(4,291	)	(10,158	)	(73,403	)	(40,919	)	(149,727	)
Net investment income (loss)		(47,448	)	34,882		131,296		403,514		(40,919	)	338,413
Proceeds from mutual fund shares sold		5,908,702		662,430		980,332		3,463,086		709,154		3,477,238
Cost of mutual fund shares sold		(5,030,475	)	(687,103	)	(1,076,995	)	(3,908,793	)	(407,062	)	(4,531,286	)
Realized gain (loss) on investments		878,227		(24,673	)	(96,663	)	(445,707	)	302,092		(1,054,048	)
Change in unrealized gain (loss) on investments		(10,427,706	)	(115,402	)	(431,832	)	(10,735,669	)	(4,172,398	)	(16,836,194	)
Net gain (loss) on investments		(9,549,479	)	(140,075	)	(528,495	)	(11,181,376	)	(3,870,306	)	(17,890,242	)
Reinvested capital gains		2,230,752		-		81,645		5,230,541		-		5,761,705
Net increase (decrease) in contract owners’ equity resulting from operations	$	(7,366,175	)	(105,193	)	(315,554	)	(5,547,321	)	(3,911,225	)	(11,790,124	)

See accompanying notes to financial statements.

18

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2008 and 2007

	Total					AVBVI				AVCA				AVCDI
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	10,006,884		10,052,590		1,227		(876	)	(762	)	(853	)	(1,714	)	(2,516	)
Realized gain (loss) on investments		(15,282,527	)	28,868,776		(93,509	)	121,736		(40,201	)	12,610		(73,292	)	24,147
Change in unrealized gain (loss) on investments		(426,828,784	)	1,175,696		(282,847	)	(153,770	)	(41,973	)	4,289		(169,220	)	(31,006	)
Reinvested capital gains		59,451,887		59,266,158		77,915		51,237		-		-		35,053		51,509
Net increase (decrease) in contract owners’ equity resulting from operations		(372,652,540	)	99,363,220		(297,214	)	18,327		(82,936	)	16,046		(209,173	)	42,134
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		45,880,649		55,497,734		26,513		57,807		3,297		2,406		18,868		18,311
Transfers between funds		-		-		(288,887	)	(423,267	)	(192,743	)	291,250		(235,650	)	243,796
Surrenders (note 6)		(69,589,065	)	(68,359,807	)	(77,091	)	(48,933	)	-		(1,849	)	(18,275	)	(32,818	)
Death benefits (note 4)		(5,248,165	)	(5,434,611	)	-		(2,325	)	-		-		-		-
Net policy repayments (loans) (note 5)		692,692		(4,131,238	)	13,822		2,583		(7,790	)	(13,302	)	(7,924	)	5
Deductions for surrender charges (note 2d)		(77,526	)	(145,897	)	-		-		-		-		-		-
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(44,068,901	)	(44,157,865	)	(25,983	)	(33,736	)	(7,216	)	(6,562	)	(20,214	)	(19,916	)
Asset charges (note 3):
MSP contracts		(355,063	)	(443,125	)	(218	)	(24	)	(84	)	(62	)	(261	)	(191	)
SL contracts or LSFP contracts		(296,649	)	(477,048	)	(97	)	(133	)	-		-		(190	)	(272	)
Adjustments to maintain reserves		(61,123	)	63,926		(153	)	14		(91	)	25		(163	)	27
Net equity transactions		(73,123,151	)	(67,587,931	)	(352,094	)	(448,014	)	(204,627	)	271,906		(263,809	)	208,942
Net change in contract owners’ equity		(445,775,691	)	31,775,289		(649,308	)	(429,687	)	(287,563	)	287,952		(472,982	)	251,076
Contract owners’ equity beginning of period		1,012,602,409		980,827,120		894,477		1,324,164		356,158		68,206		647,825		396,749
Contract owners’ equity end of period	$	566,826,718		1,012,602,409		245,169		894,477		68,595		356,158		174,843		647,825
CHANGES IN UNITS:
Beginning units		37,768,248		39,194,736		52,024		77,830		21,310		4,562		31,176		21,102
Units purchased		6,209,846		9,576,655		8,381		3,057		513		18,196		1,943		14,928
Units redeemed		(8,960,648	)	(11,003,143	)	(30,868	)	(28,863	)	(14,667	)	(1,448	)	(17,190	)	(4,854	)
Ending units		35,017,446		37,768,248		29,537		52,024		7,156		21,310		15,929		31,176

(Continued)

19

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	ALVGIA					ALVSVA				ACVB				ACVCA
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	12,550		11,944		2,197		7,003		82,581		75,210		(95,659	)	(113,921	)
Realized gain (loss) on investments		(51,327	)	60,046		(58,993	)	119,287		7,669		96,911		1,317,200		807,049
Change in unrealized gain (loss) on investments		(467,959	)	(79,613	)	(358,078	)	(219,358	)	(1,472,594	)	(207,365	)	(11,600,631	)	5,759,766
Reinvested capital gains		130,982		56,897		89,366		111,212		313,273		258,071		1,295,445		-
Net increase (decrease) in contract owners’ equity resulting from operations		(375,754	)	49,274		(325,508	)	18,144		(1,069,071	)	222,827		(9,083,645	)	6,452,894
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		85,138		92,686		43,630		101,090		253,506		247,508		704,743		820,317
Transfers between funds		(65,912	)	(97,308	)	(61,193	)	(164,777	)	805,122		(281,095	)	(1,510,326	)	1,808,115
Surrenders (note 6)		(25,195	)	(113,037	)	(116,558	)	(54,820	)	(361,924	)	(238,164	)	(771,456	)	(1,226,171	)
Death benefits (note 4)		-		-		(9,633	)	-		(43,133	)	(12,260	)	(111,509	)	(105,352	)
Net policy repayments (loans) (note 5)		(9,678	)	(3,921	)	6,728		(22,625	)	22,622		(11,028	)	(78,777	)	(21,094	)
Deductions for surrender charges (note 2d)		-		-		-		-		(212	)	(433	)	-		(983	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(34,171	)	(35,072	)	(33,902	)	(51,287	)	(257,361	)	(233,628	)	(880,225	)	(822,833	)
Asset charges (note 3):
MSP contracts		(667	)	(1,045	)	(462	)	(515	)	(3,312	)	(4,305	)	(5,513	)	(7,062	)
SL contracts or LSFP contracts		(1,113	)	(1,796	)	(233	)	(319	)	(859	)	(1,120	)	(1,819	)	(2,664	)
Adjustments to maintain reserves		(171	)	2		(122	)	2		(256	)	42		(21,078	)	58,330
Net equity transactions		(51,769	)	(159,491	)	(171,745	)	(193,251	)	414,193		(534,483	)	(2,675,960	)	500,603
Net change in contract owners’ equity		(427,523	)	(110,217	)	(497,253	)	(175,107	)	(654,878	)	(311,656	)	(11,759,605	)	6,953,497
Contract owners’ equity beginning of period		952,701		1,062,918		1,048,340		1,223,447		4,707,795		5,019,451		21,511,456		14,557,959
Contract owners’ equity end of period	$	525,178		952,701		551,087		1,048,340		4,052,917		4,707,795		9,751,851		21,511,456
CHANGES IN UNITS:
Beginning units		54,160		63,416		52,438		62,084		201,420		225,298		640,052		607,730
Units purchased		12,218		12,276		3,963		9,288		65,671		32,345		34,243		177,481
Units redeemed		(16,031	)	(21,532	)	(13,452	)	(18,934	)	(41,412	)	(56,223	)	(175,962	)	(145,159	)
Ending units		50,347		54,160		42,949		52,438		225,679		201,420		498,333		640,052

(Continued)

20

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	ACVIG					ACVIP2				ACVI				ACVI3
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	38,005		45,049		68,242		32,661		21,981		12,521		8,631		1,572
Realized gain (loss) on investments		45,361		510,852		(42,098	)	(9,949	)	686,446		1,422,909		(33,580	)	59,952
Change in unrealized gain (loss) on investments		(1,375,307	)	(556,432	)	(91,919	)	48,315		(5,145,468	)	148,771		(1,927,700	)	350,687
Reinvested capital gains		300,385		-		-		-		696,172		-		278,631		-
Net increase (decrease) in contract owners’ equity resulting from operations		(991,556	)	(531	)	(65,775	)	71,027		(3,740,869	)	1,584,201		(1,674,018	)	412,211
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		113,315		133,766		217,091		35,325		(1,235	)	26,424		440,182		442,168
Transfers between funds		(78,774	)	(409,736	)	746,500		36,554		(581,978	)	(738,490	)	919		824,237
Surrenders (note 6)		(164,876	)	(218,369	)	(63,756	)	(52,612	)	(642,694	)	(1,237,535	)	(173,818	)	(352,754	)
Death benefits (note 4)		(2,646	)	(32,341	)	-		(3,138	)	(10,330	)	(59,007	)	(580	)	(7,370	)
Net policy repayments (loans) (note 5)		38,974		(56,271	)	(180,914	)	(11,805	)	80,488		(133,378	)	(9,276	)	179,491
Deductions for surrender charges (note 2d)		(87	)	(398	)	-		-		-		(1,611	)	-		(245	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(131,914	)	(137,906	)	(55,918	)	(30,268	)	(301,401	)	(340,495	)	(147,240	)	(123,406	)
Asset charges (note 3):
MSP contracts		(2,277	)	(2,763	)	(1,603	)	(810	)	(2,190	)	(2,803	)	(584	)	(475	)
SL contracts or LSFP contracts		(737	)	(1,023	)	(699	)	(673	)	(2,955	)	(5,027	)	(1,525	)	(2,018	)
Adjustments to maintain reserves		(222	)	21		37		(117	)	(339	)	70		(128	)	5
Net equity transactions		(229,244	)	(725,020	)	660,738		(27,544	)	(1,462,634	)	(2,491,852	)	107,950		959,633
Net change in contract owners’ equity		(1,220,800	)	(725,551	)	594,963		43,483		(5,203,503	)	(907,651	)	(1,566,068	)	1,371,844
Contract owners’ equity beginning of period		2,998,223		3,723,774		907,299		863,816		9,299,538		10,207,189		3,578,191		2,206,347
Contract owners’ equity end of period	$	1,777,423		2,998,223		1,502,262		907,299		4,096,035		9,299,538		2,012,123		3,578,191
CHANGES IN UNITS:
Beginning units		209,942		261,470		75,086		78,218		371,658		455,896		210,562		152,658
Units purchased		33,035		22,872		79,940		35,571		13,788		73,717		50,689		110,858
Units redeemed		(53,572	)	(74,400	)	(28,199	)	(38,703	)	(88,838	)	(157,955	)	(45,701	)	(52,954	)
Ending units		189,405		209,942		126,827		75,086		296,608		371,658		215,550		210,562

(Continued)

21

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	ACVMV1					ACVU1				ACVV				ACVVS1
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	(4,120	)	1,360		(2,632	)	(3,189	)	186,246		151,359		(7,845	)	(3,330	)
Realized gain (loss) on investments		(92,873	)	40,686		(13,935	)	8,692		(741,744	)	635,161		(108,622	)	70,230
Change in unrealized gain (loss) on investments		(191,264	)	(94,273	)	(311,349	)	110,894		(3,596,820	)	(2,727,985	)	(895,565	)	86,032
Reinvested capital gains		-		13,080		78,593		-		1,245,215		1,203,357		74,587		-
Net increase (decrease) in contract owners’ equity resulting from operations		(288,257	)	(39,147	)	(249,323	)	116,397		(2,907,103	)	(738,108	)	(937,445	)	152,932
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		53,510		64,969		18,162		17,833		419,705		576,999		126,698		58,493
Transfers between funds		28,432		550,648		(395,240	)	374,123		(956,294	)	(983,577	)	93,610		1,616,035
Surrenders (note 6)		(96,405	)	(45,347	)	(25,226	)	(24,736	)	(1,014,677	)	(877,514	)	(77,465	)	(794	)
Death benefits (note 4)		-		(4,306	)	-		-		(140,940	)	(51,631	)	(516	)	-
Net policy repayments (loans) (note 5)		(1,263	)	(7,193	)	1,502		(15,111	)	376,948		(151,157	)	(12,903	)	(30,428	)
Deductions for surrender charges (note 2d)		-		-		-		-		(883	)	(3,386	)	-		-
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(48,470	)	(45,230	)	(25,196	)	(24,268	)	(410,036	)	(492,229	)	(73,212	)	(26,363	)
Asset charges (note 3):
MSP contracts		(210	)	(576	)	(353	)	(335	)	(5,933	)	(8,495	)	(191	)	(187	)
SL contracts or LSFP contracts		(73	)	(215	)	(172	)	(415	)	(4,803	)	(7,460	)	(380	)	(327	)
Adjustments to maintain reserves		1,272		51		(142	)	(10	)	(372	)	(22	)	(93	)	(6	)
Net equity transactions		(63,207	)	512,801		(426,665	)	327,081		(1,737,285	)	(1,998,472	)	55,548		1,616,423
Net change in contract owners’ equity		(351,464	)	473,654		(675,988	)	443,478		(4,644,388	)	(2,736,580	)	(881,897	)	1,769,355
Contract owners’ equity beginning of period		1,147,375		673,721		982,374		538,896		11,938,121		14,674,701		1,810,367		41,012
Contract owners’ equity end of period	$	795,911		1,147,375		306,386		982,374		7,293,733		11,938,121		928,470		1,810,367
CHANGES IN UNITS:
Beginning units		87,462		49,904		76,046		50,294		489,190		569,670		105,106		3,316
Units purchased		8,484		51,251		3,239		37,950		25,724		107,240		17,711		105,829
Units redeemed		(15,391	)	(13,693	)	(38,529	)	(12,198	)	(107,509	)	(187,720	)	(17,364	)	(4,039	)
Ending units		80,555		87,462		40,756		76,046		407,405		489,190		105,453		105,106

(Continued)

22

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	WVCP					WIEP				WSCP				DVSCS
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	6,743		(5,020	)	69,809		41,566		(37,008	)	(63,195	)	5,589		(3,385	)
Realized gain (loss) on investments		(3,387	)	108,670		272,365		652,817		380,793		684,930		(128,115	)	168,213
Change in unrealized gain (loss) on investments		(311,364	)	(126,367	)	(3,273,541	)	457,108		(3,562,897	)	(729,126	)	(642,274	)	(260,015	)
Reinvested capital gains		-		-		-		-		-		-		226,751		80,999
Net increase (decrease) in contract owners’ equity resulting from operations		(308,008	)	(22,717	)	(2,931,367	)	1,151,491		(3,219,112	)	(107,391	)	(538,049	)	(14,188	)
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		31,502		40,676		259,226		317,248		561,472		689,357		77,601		101,584
Transfers between funds		(51,220	)	(77,335	)	(294,235	)	(723,999	)	(402,015	)	(629,296	)	(45,427	)	(137,368	)
Surrenders (note 6)		(44,625	)	(154,047	)	(287,519	)	(400,777	)	(645,944	)	(853,637	)	(141,408	)	(203,532	)
Death benefits (note 4)		(1,506	)	(15,380	)	(8,170	)	(33,962	)	(24,127	)	(25,797	)	-		(6,109	)
Net policy repayments (loans) (note 5)		16,835		40,474		(38,576	)	(46,279	)	10,729		68,471		9,125		(35,405	)
Deductions for surrender charges (note 2d)		(25	)	(105	)	(2,332	)	(352	)	(2,686	)	(630	)	(5,101	)	-
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(26,272	)	(32,438	)	(311,117	)	(324,550	)	(499,662	)	(530,735	)	(71,732	)	(76,070	)
Asset charges (note 3):
MSP contracts		(284	)	(471	)	(3,692	)	(4,522	)	(2,774	)	(3,662	)	(1,496	)	(1,925	)
SL contracts or LSFP contracts		(497	)	(929	)	(2,329	)	(6,224	)	(3,704	)	(7,369	)	(1,082	)	(1,922	)
Adjustments to maintain reserves		(212	)	47		(288	)	52		(190	)	(92	)	(287	)	51
Net equity transactions		(76,304	)	(199,508	)	(689,032	)	(1,223,365	)	(1,008,901	)	(1,293,390	)	(179,807	)	(360,696	)
Net change in contract owners’ equity		(384,312	)	(222,225	)	(3,620,399	)	(71,874	)	(4,228,013	)	(1,400,781	)	(717,856	)	(374,884	)
Contract owners’ equity beginning of period		715,672		937,897		7,562,306		7,634,180		9,962,287		11,363,068		1,772,968		2,147,852
Contract owners’ equity end of period	$	331,360		715,672		3,941,907		7,562,306		5,734,274		9,962,287		1,055,112		1,772,968
CHANGES IN UNITS:
Beginning units		50,130		61,072		403,012		469,340		590,616		653,228		116,238		139,398
Units purchased		5,869		11,044		32,557		95,551		62,480		132,562		12,514		14,762
Units redeemed		(11,964	)	(21,986	)	(78,600	)	(161,879	)	(130,267	)	(195,174	)	(28,070	)	(37,922	)
Ending units		44,035		50,130		356,969		403,012		522,829		590,616		100,682		116,238

(Continued)

23

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	DSIF					DCAP				DSC				DGI
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	861,818		847,047		67,476		58,121		502		561		3,132		4,949
Realized gain (loss) on investments		(676,962	)	14,949		42,297		393,679		(30,430	)	1,530		18,536		78,485
Change in unrealized gain (loss) on investments		(24,590,637	)	2,668,625		(2,098,237	)	(74,888	)	(36,247	)	(63,224	)	(1,161,371	)	(14,780	)
Reinvested capital gains		-		-		351,174		-		8,018		37,460		229,922		107,884
Net increase (decrease) in contract owners’ equity resulting from operations		(24,405,781	)	3,530,621		(1,637,290	)	376,912		(58,157	)	(23,673	)	(909,781	)	176,538
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		3,126,985		3,670,007		252,170		272,701		36,063		21,945		109,072		123,182
Transfers between funds		(4,069,904	)	(3,139,761	)	32,808		(670,433	)	(30,448	)	(102,081	)	4,754		(77,069	)
Surrenders (note 6)		(3,766,811	)	(6,154,095	)	(275,680	)	(312,989	)	(18,330	)	(47,261	)	(58,062	)	(103,244	)
Death benefits (note 4)		(246,150	)	(412,680	)	(7,868	)	(17,316	)	-		-		(13,477	)	-
Net policy repayments (loans) (note 5)		139,051		213,150		6,252		(1,192	)	153		(9,423	)	(11,179	)	(19,680	)
Deductions for surrender charges (note 2d)		(12,453	)	(18,138	)	(595	)	(1,254	)	-		(432	)	(195	)	(599	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(3,030,123	)	(3,229,990	)	(219,484	)	(215,276	)	(13,710	)	(17,251	)	(116,905	)	(116,217	)
Asset charges (note 3):
MSP contracts		(22,106	)	(29,838	)	(900	)	(1,061	)	-		(19	)	(956	)	(1,663	)
SL contracts or LSFP contracts		(36,340	)	(62,431	)	(4,798	)	(6,678	)	(17	)	(48	)	(2,164	)	(3,507	)
Adjustments to maintain reserves		(1,537	)	(572	)	(267	)	56		(89	)	(42	)	(192	)	(46	)
Net equity transactions		(7,919,388	)	(9,164,348	)	(218,362	)	(953,442	)	(26,378	)	(154,612	)	(89,304	)	(198,843	)
Net change in contract owners’ equity		(32,325,169	)	(5,633,727	)	(1,855,652	)	(576,530	)	(84,535	)	(178,285	)	(999,085	)	(22,305	)
Contract owners’ equity beginning of period		70,721,716		76,355,443		5,557,552		6,134,082		194,755		373,040		2,292,066		2,314,371
Contract owners’ equity end of period	$	38,396,547		70,721,716		3,701,900		5,557,552		110,220		194,755		1,292,981		2,292,066
CHANGES IN UNITS:
Beginning units		2,329,576		2,637,338		344,084		401,382		14,274		24,156		140,806		155,594
Units purchased		253,595		462,178		52,883		49,115		3,034		3,339		25,510		42,891
Units redeemed		(541,115	)	(769,940	)	(67,508	)	(106,413	)	(4,300	)	(13,221	)	(32,835	)	(57,679	)
Ending units		2,042,056		2,329,576		329,459		344,084		13,008		14,274		133,481		140,806

(Continued)

24

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	FALF					FVCA2P				FVMOS				FQB
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	1,391		1,857		(83	)	(8	)	1,713		4		62,172		56,135
Realized gain (loss) on investments		(6,372	)	(3,047	)	(1,933	)	1,720		(6,805	)	(57	)	(29,219	)	(23,235	)
Change in unrealized gain (loss) on investments		(70,329	)	(37,768	)	(4,817	)	(1,071	)	1,426		27		(151,981	)	25,413
Reinvested capital gains		30,551		21,161		292		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations		(44,759	)	(17,797	)	(6,541	)	641		(3,666	)	(26	)	(119,028	)	58,313
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		5,639		5,363		1,408		562		22,242		140		55,108		50,537
Transfers between funds		(8,031	)	(49,599	)	36,480		4,043		236,765		3,406		312,248		(90,971	)
Surrenders (note 6)		-		-		-		(882	)	-		-		(46,475	)	(31,850	)
Death benefits (note 4)		-		-		-		-		-		-		(5,653	)	(13,509	)
Net policy repayments (loans) (note 5)		-		-		537		870		592		-		(60,672	)	(21,626	)
Deductions for surrender charges (note 2d)		-		-		-		-		-		-		-		(269	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(3,893	)	(4,408	)	(749	)	(386	)	(8,251	)	(154	)	(66,843	)	(60,951	)
Asset charges (note 3):
MSP contracts		-		-		-		-		(486	)	-		(1,605	)	(1,680	)
SL contracts or LSFP contracts		-		(43	)	-		-		-		-		(485	)	(412	)
Adjustments to maintain reserves		(117	)	(45	)	(72	)	(8	)	(55	)	21		137		37
Net equity transactions		(6,402	)	(48,732	)	37,604		4,199		250,807		3,413		185,760		(170,694	)
Net change in contract owners’ equity		(51,161	)	(66,529	)	31,063		4,840		247,141		3,387		66,732		(112,381	)
Contract owners’ equity beginning of period		136,316		202,845		14,339		9,499		3,387		-		1,248,277		1,360,658
Contract owners’ equity end of period	$	85,155		136,316		45,402		14,339		250,528		3,387		1,315,009		1,248,277
CHANGES IN UNITS:
Beginning units		9,128		12,188		880		638		334		-		99,552		113,684
Units purchased		1,432		434		3,131		325		25,578		353		34,398		14,666
Units redeemed		(1,926	)	(3,494	)	(75	)	(83	)	(980	)	(19	)	(20,456	)	(28,798	)
Ending units		8,634		9,128		3,936		880		24,932		334		113,494		99,552

(Continued)

25

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	FEIP					FGP				FHIP				FHIPR
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	1,062,247		927,168		144,446		172,894		1,044,676		1,208,463		158,631		130,249
Realized gain (loss) on investments		(1,435,329	)	1,361,670		(2,562,727	)	(937,536	)	(425,055	)	(179,956	)	(85,512	)	(4,444	)
Change in unrealized gain (loss) on investments		(29,497,045	)	(7,496,224	)	(38,836,729	)	20,372,292		(4,147,025	)	(589,939	)	(534,596	)	(133,142	)
Reinvested capital gains		60,582		6,185,875		-		75,097		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations		(29,809,545	)	978,489		(41,255,010	)	19,682,747		(3,527,404	)	438,568		(461,477	)	(7,337	)
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		2,813,064		3,345,212		4,538,552		5,096,379		26,129		461,252		787,514		615,225
Transfers between funds		(2,139,955	)	(835,153	)	(2,886,422	)	(2,056,318	)	(100,301	)	(2,976,142	)	48,558		1,026,834
Surrenders (note 6)		(3,825,474	)	(4,740,013	)	(4,410,207	)	(5,366,336	)	(491,902	)	(1,034,168	)	(253,439	)	(184,653	)
Death benefits (note 4)		(478,240	)	(688,300	)	(348,101	)	(434,382	)	(290,416	)	(303,082	)	(8,388	)	(2,404	)
Net policy repayments (loans) (note 5)		203,693		(363,676	)	229,705		338,138		(196,326	)	(172,479	)	275,342		242,086
Deductions for surrender charges (note 2d)		(2,895	)	(8,911	)	(6,936	)	(13,222	)	(607	)	(657	)	(121	)	(19	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(3,111,920	)	(3,367,164	)	(4,253,155	)	(4,194,506	)	(675,186	)	(785,072	)	(234,636	)	(77,612	)
Asset charges (note 3):
MSP contracts		(25,842	)	(36,311	)	(18,218	)	(22,609	)	(7,931	)	(10,762	)	(909	)	(369	)
SL contracts or LSFP contracts		(14,785	)	(28,153	)	(18,333	)	(28,479	)	(4,924	)	(8,257	)	-		-
Adjustments to maintain reserves		(502	)	(215	)	(2,678	)	(5,751	)	(252	)	(16	)	(67	)	482
Net equity transactions		(6,582,856	)	(6,722,684	)	(7,175,793	)	(6,687,086	)	(1,741,716	)	(4,829,383	)	613,854		1,619,570
Net change in contract owners’ equity		(36,392,401	)	(5,744,195	)	(48,430,803	)	12,995,661		(5,269,120	)	(4,390,815	)	152,377		1,612,233
Contract owners’ equity beginning of period		73,621,934		79,366,129		91,759,902		78,764,241		15,567,413		19,958,228		1,612,233		-
Contract owners’ equity end of period	$	37,229,533		73,621,934		43,329,099		91,759,902		10,298,293		15,567,413		1,764,610		1,612,233
CHANGES IN UNITS:
Beginning units		1,670,486		1,852,320		2,229,562		2,405,354		652,970		819,864		163,580		-
Units purchased		109,912		217,529		145,627		331,094		56,426		55,028		125,038		178,928
Units redeemed		(311,893	)	(399,363	)	(392,374	)	(506,886	)	(111,239	)	(221,922	)	(49,004	)	(15,348	)
Ending units		1,468,505		1,670,486		1,982,815		2,229,562		598,157		652,970		239,614		163,580

(Continued)

26

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	FOP					FOSR				FAMP				FCP
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	244,292		476,743		118,681		151,223		352,026		1,126,076		247,457		255,793
Realized gain (loss) on investments		842,010		1,598,468		(129,120	)	323,040		(847,773	)	(148,700	)	(1,708,440	)	2,101,789
Change in unrealized gain (loss) on investments		(9,754,261	)	(557,205	)	(3,608,460	)	(23,209	)	(7,205,671	)	1,290,334		(31,467,403	)	(9,286,236	)
Reinvested capital gains		1,659,711		1,185,300		603,345		366,243		1,825,304		573,845		1,775,353		18,328,735
Net increase (decrease) in contract owners’ equity resulting from operations		(7,008,248	)	2,703,306		(3,015,554	)	817,297		(5,876,114	)	2,841,555		(31,153,033	)	11,400,081
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		12		(4,110	)	793,422		863,147		797,558		985,595		2,551,876		3,016,116
Transfers between funds		(681,569	)	(880,656	)	603,939		(124,894	)	(672,840	)	(594,319	)	(1,501,664	)	(1,839,315	)
Surrenders (note 6)		(962,876	)	(1,020,631	)	(356,406	)	(603,929	)	(1,195,351	)	(1,330,995	)	(3,830,157	)	(3,919,910	)
Death benefits (note 4)		(67,621	)	(55,402	)	(20,404	)	(5,818	)	(134,979	)	(381,570	)	(337,563	)	(201,440	)
Net policy repayments (loans) (note 5)		(150,550	)	(176,753	)	164,641		258,317		20,757		110,306		(127,983	)	(426,311	)
Deductions for surrender charges (note 2d)		(3,181	)	(34	)	(786	)	(60	)	(220	)	(672	)	(4,943	)	(15,133	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(470,276	)	(520,895	)	(354,973	)	(314,836	)	(907,220	)	(854,572	)	(2,652,418	)	(2,679,960	)
Asset charges (note 3):
MSP contracts		(4,292	)	(6,114	)	(1,087	)	(985	)	(5,212	)	(6,246	)	(23,665	)	(28,893	)
SL contracts or LSFP contracts		(5,107	)	(9,752	)	(2,604	)	(3,861	)	(2,897	)	(3,966	)	(24,523	)	(37,323	)
Adjustments to maintain reserves		420		(1,184	)	(2,049	)	(8	)	(413	)	(22	)	(672	)	303
Net equity transactions		(2,345,040	)	(2,675,531	)	823,693		67,073		(2,100,817	)	(2,076,461	)	(5,951,712	)	(6,131,866	)
Net change in contract owners’ equity		(9,353,288	)	27,775		(2,191,861	)	884,370		(7,976,931	)	765,094		(37,104,745	)	5,268,215
Contract owners’ equity beginning of period		17,304,153		17,276,378		6,042,732		5,158,362		21,052,452		20,287,358		76,170,126		70,901,911
Contract owners’ equity end of period	$	7,950,865		17,304,153		3,850,871		6,042,732		13,075,521		21,052,452		39,065,381		76,170,126
CHANGES IN UNITS:
Beginning units		549,270		643,078		354,418		353,120		723,126		809,630		2,042,344		2,222,974
Units purchased		4,086		32,409		120,175		104,148		40,854		81,680		206,695		391,794
Units redeemed		(96,404	)	(126,217	)	(70,302	)	(102,850	)	(122,741	)	(168,184	)	(434,801	)	(572,424	)
Ending units		456,952		549,270		404,291		354,418		641,239		723,126		1,814,238		2,042,344

(Continued)

27

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	FIGBS					FGOP				FMCS				FVSS
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	135,375		128,235		(4,605	)	(26,879	)	(14,679	)	14,529		2,107		5,255
Realized gain (loss) on investments		(50,645	)	1,955		88,819		342,984		(333,004	)	397,690		(156,651	)	112,161
Change in unrealized gain (loss) on investments		(200,795	)	607		(2,525,563	)	569,338		(5,204,756	)	90,453		(780,745	)	(237,678	)
Reinvested capital gains		2,999		-		-		-		1,450,355		879,087		238,185		196,544
Net increase (decrease) in contract owners’ equity resulting from operations		(113,066	)	130,797		(2,441,349	)	885,443		(4,102,084	)	1,381,759		(697,104	)	76,282
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		198,817		178,197		227,860		240,727		516,035		550,803		45,258		61,110
Transfers between funds		(186,724	)	182,392		40,154		(105,380	)	302,262		(92,253	)	(53,255	)	(216,363	)
Surrenders (note 6)		(114,598	)	(65,858	)	(207,748	)	(236,382	)	(728,349	)	(372,320	)	(40,749	)	(82,877	)
Death benefits (note 4)		(40,634	)	-		(2,278	)	-		(15,236	)	(3,026	)	(11,692	)	(1,159	)
Net policy repayments (loans) (note 5)		4,970		(14,024	)	11,057		(67,773	)	(60,723	)	(104,821	)	13,061		(22,592	)
Deductions for surrender charges (note 2d)		-		-		(2,538	)	(1,059	)	(3,819	)	(1,561	)	-		-
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(188,565	)	(232,528	)	(180,283	)	(183,430	)	(401,950	)	(384,224	)	(37,145	)	(54,693	)
Asset charges (note 3):
MSP contracts		(1,605	)	(1,461	)	(1,144	)	(1,480	)	(3,783	)	(3,898	)	(329	)	(770	)
SL contracts or LSFP contracts		(1,176	)	(1,338	)	(2,580	)	(3,953	)	(1,463	)	(2,782	)	(1,618	)	(2,246	)
Adjustments to maintain reserves		(97	)	(24	)	(158	)	44		(59	)	(329	)	(168	)	7
Net equity transactions		(329,612	)	45,356		(117,658	)	(358,686	)	(397,085	)	(414,411	)	(86,637	)	(319,583	)
Net change in contract owners’ equity		(442,678	)	176,153		(2,559,007	)	526,757		(4,499,169	)	967,348		(783,741	)	(243,301	)
Contract owners’ equity beginning of period		3,556,530		3,380,377		4,488,015		3,961,258		10,444,313		9,476,965		1,421,339		1,664,640
Contract owners’ equity end of period	$	3,113,852		3,556,530		1,929,008		4,488,015		5,945,144		10,444,313		637,598		1,421,339
CHANGES IN UNITS:
Beginning units		307,614		303,418		308,836		334,824		396,358		413,956		85,958		106,224
Units purchased		22,341		46,008		85,131		78,231		61,062		90,946		7,020		11,256
Units redeemed		(50,320	)	(41,812	)	(96,391	)	(104,219	)	(82,781	)	(108,544	)	(13,751	)	(31,522	)
Ending units		279,635		307,614		297,576		308,836		374,639		396,358		79,227		85,958

(Continued)

28

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	FNRS2					FF10S				FF20S				FF30S
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	(32,398	)	(20,760	)	16,349		22,444		19,591		12,341		9,144		10,838
Realized gain (loss) on investments		(84,046	)	178,169		(107,080	)	9,267		(15,489	)	38,688		(63,287	)	10,950
Change in unrealized gain (loss) on investments		(4,157,163	)	1,369,655		(120,059	)	(22,637	)	(354,048	)	(17,734	)	(263,829	)	(1,752	)
Reinvested capital gains		211,141		287,074		33,809		20,602		43,814		21,697		44,634		23,865
Net increase (decrease) in contract owners’ equity resulting from operations		(4,062,466	)	1,814,138		(176,981	)	29,676		(306,132	)	54,992		(273,338	)	43,901
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		275,297		236,470		23,486		25,341		25,881		23,421		54,063		21,416
Transfers between funds		393,308		1,516,011		(222,307	)	753,886		256,224		397,528		46,006		323,165
Surrenders (note 6)		(299,160	)	(149,865	)	(23,664	)	(2,014	)	(12,565	)	(30,647	)	(51,447	)	(6,361	)
Death benefits (note 4)		(2,288	)	(55,715	)	-		-		-		-		-		-
Net policy repayments (loans) (note 5)		(111,550	)	(64,753	)	(3,491	)	(3,356	)	2,999		1,489		435		(35,136	)
Deductions for surrender charges (note 2d)		-		-		-		-		-		-		-		-
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(307,759	)	(189,056	)	(22,378	)	(10,241	)	(31,764	)	(23,137	)	(37,189	)	(19,998	)
Asset charges (note 3):
MSP contracts		(2,789	)	(3,537	)	(802	)	(936	)	(1,265	)	(1,434	)	(90	)	-
SL contracts or LSFP contracts		(1,300	)	(1,167	)	-		-		-		-		-		-
Adjustments to maintain reserves		(1,568	)	140		(66	)	4		(85	)	(2	)	(91	)	40
Net equity transactions		(57,809	)	1,288,528		(249,222	)	762,684		239,425		367,218		11,687		283,126
Net change in contract owners’ equity		(4,120,275	)	3,102,666		(426,203	)	792,360		(66,707	)	422,210		(261,651	)	327,027
Contract owners’ equity beginning of period		7,081,477		3,978,811		1,025,198		232,838		783,039		360,829		692,538		365,511
Contract owners’ equity end of period	$	2,961,202		7,081,477		598,995		1,025,198		716,332		783,039		430,887		692,538
CHANGES IN UNITS:
Beginning units		312,864		254,880		80,584		19,770		57,904		29,288		49,338		28,804
Units purchased		37,184		123,855		11,357		72,628		24,896		42,255		21,611		26,460
Units redeemed		(61,680	)	(65,871	)	(28,907	)	(11,814	)	(3,742	)	(13,639	)	(20,976	)	(5,926	)
Ending units		288,368		312,864		63,034		80,584		79,058		57,904		49,973		49,338

(Continued)

29

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	FTVDM3					TIF				TIF3				FTVFA2
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	41,943		38,311		14,001		17,453		42,403		33,983		288		-
Realized gain (loss) on investments		(185,209	)	148,740		(342	)	156,031		13,770		62,901		(105	)	-
Change in unrealized gain (loss) on investments		(1,423,821	)	177,835		(376,971	)	(74,954	)	(1,292,270	)	97,283		(537	)	-
Reinvested capital gains		372,119		168,029		61,369		47,573		199,441		95,906		295		-
Net increase (decrease) in contract owners’ equity resulting from operations		(1,194,968	)	532,915		(301,943	)	146,103		(1,036,656	)	290,073		(59	)	-
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		103,140		104,622		11		(188	)	123,082		142,842		(260	)	-
Transfers between funds		(943,069	)	939,170		(55,306	)	(370,182	)	(140,802	)	843,210		10,761		-
Surrenders (note 6)		(87,764	)	(101,367	)	(48,047	)	(30,370	)	(147,861	)	(73,968	)	-		-
Death benefits (note 4)		(7,839	)	-		-		(5,314	)	-		(1,414	)	-		-
Net policy repayments (loans) (note 5)		(3,202	)	(19,847	)	(9,109	)	(10,707	)	(7,946	)	(27,364	)	-		-
Deductions for surrender charges (note 2d)		-		(679	)	(2,404	)	(45	)	(301	)	(120	)	-		-
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(84,089	)	(75,532	)	(26,984	)	(28,623	)	(68,206	)	(63,688	)	(142	)	-
Asset charges (note 3):
MSP contracts		(848	)	(1,810	)	(467	)	(634	)	(2,234	)	(2,771	)	-		-
SL contracts or LSFP contracts		(250	)	(232	)	(254	)	(499	)	(533	)	(780	)	-		-
Adjustments to maintain reserves		31		61		(146	)	(10	)	(150	)	57		(13	)	-
Net equity transactions		(1,023,890	)	844,386		(142,706	)	(446,572	)	(244,951	)	816,004		10,346		-
Net change in contract owners’ equity		(2,218,858	)	1,377,301		(444,649	)	(300,469	)	(1,281,607	)	1,106,077		10,287		-
Contract owners’ equity beginning of period		3,040,066		1,662,765		822,933		1,123,402		2,714,617		1,608,540		-		-
Contract owners’ equity end of period	$	821,208		3,040,066		378,284		822,933		1,433,010		2,714,617		10,287		-
CHANGES IN UNITS:
Beginning units		145,952		102,256		34,294		54,046		173,600		118,236		-		-
Units purchased		7,839		65,822		3,280		297		11,553		78,871		1,574		-
Units redeemed		(70,037	)	(22,126	)	(11,071	)	(20,049	)	(30,758	)	(23,507	)	(23	)	-
Ending units		83,754		145,952		26,503		34,294		154,395		173,600		1,551		-

(Continued)

30

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	FTVGI3					FTVIS2				FTVRDI				FTVSVI
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	93,394		22,019		51,627		23,825		53,608		87,922		25,713		11,010
Realized gain (loss) on investments		50,067		15,598		(64,802	)	13,833		(12,080	)	236,056		(22,002	)	121,458
Change in unrealized gain (loss) on investments		(67,057	)	52,885		(360,161	)	(35,376	)	(1,132,566	)	(509,454	)	(1,291,291	)	(487,268	)
Reinvested capital gains		-		-		23,851		5,256		26,328		63,951		221,202		244,614
Net increase (decrease) in contract owners’ equity resulting from operations		76,404		90,502		(349,485	)	7,538		(1,064,710	)	(121,525	)	(1,066,378	)	(110,186	)
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		250,447		32,923		42,077		70,039		212,811		272,661		203,293		224,756
Transfers between funds		912,720		1,255,440		(77,738	)	952,227		18,186		(163,233	)	232,636		(173,214	)
Surrenders (note 6)		(32,712	)	(1,941	)	(80,825	)	(43,889	)	(201,613	)	(172,228	)	(176,054	)	(145,104	)
Death benefits (note 4)		-		-		-		-		(13,279	)	(46,742	)	(282	)	-
Net policy repayments (loans) (note 5)		(197,317	)	(4,789	)	(8,243	)	(13,203	)	22,813		(40,458	)	(59,739	)	(25,660	)
Deductions for surrender charges (note 2d)		-		-		-		-		-		(574	)	-		(680	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(63,877	)	(19,616	)	(52,114	)	(34,928	)	(135,536	)	(143,395	)	(97,133	)	(110,151	)
Asset charges (note 3):
MSP contracts		(1,176	)	(352	)	(691	)	(1,146	)	(831	)	(1,073	)	(442	)	(455	)
SL contracts or LSFP contracts		(343	)	(293	)	-		-		(1,387	)	(2,169	)	(294	)	(826	)
Adjustments to maintain reserves		(147	)	16		(54	)	(19	)	(182	)	(3	)	(169	)	(58	)
Net equity transactions		867,595		1,261,388		(177,588	)	929,081		(99,018	)	(297,214	)	101,816		(231,392	)
Net change in contract owners’ equity		943,999		1,351,890		(527,073	)	936,619		(1,163,728	)	(418,739	)	(964,562	)	(341,578	)
Contract owners’ equity beginning of period		1,736,986		385,096		1,264,511		327,892		4,053,623		4,472,362		3,129,427		3,471,005
Contract owners’ equity end of period	$	2,680,985		1,736,986		737,438		1,264,511		2,889,895		4,053,623		2,164,865		3,129,427
CHANGES IN UNITS:
Beginning units		142,098		34,906		109,552		29,332		255,322		274,062		154,814		167,288
Units purchased		91,956		121,204		8,698		93,663		44,208		63,863		34,091		23,689
Units redeemed		(26,527	)	(14,012	)	(26,915	)	(13,443	)	(49,267	)	(82,603	)	(28,618	)	(36,163	)
Ending units		207,527		142,098		91,335		109,552		250,263		255,322		160,287		154,814

(Continued)

31

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	JABS					JACAS				JAGTS				JARLCS
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	12,118		3,661		(23,589	)	(12,099	)	(4,256	)	(2,073	)	239		(393	)
Realized gain (loss) on investments		(77,884	)	42,047		402,342		439,151		69,988		115,877		(8,502	)	8,842
Change in unrealized gain (loss) on investments		(113,967	)	(18,385	)	(2,952,629	)	540,465		(654,669	)	112,471		(54,132	)	4,969
Reinvested capital gains		45,702		-		-		-		-		-		7,105		1,665
Net increase (decrease) in contract owners’ equity resulting from operations		(134,031	)	27,323		(2,573,876	)	967,517		(588,937	)	226,275		(55,290	)	15,083
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		9,553		7,970		298,610		157,602		88,255		83,566		13,530		17,395
Transfers between funds		329,429		(35,563	)	1,517,687		1,024,588		(110,098	)	117,012		1,291		(45,858	)
Surrenders (note 6)		(1,950	)	-		(289,197	)	(154,881	)	(46,680	)	(75,283	)	(1,224	)	-
Death benefits (note 4)		-		-		(1,287	)	(16,240	)	(284	)	(9,228	)	-		-
Net policy repayments (loans) (note 5)		(2,033	)	(1,557	)	(42,355	)	(59,764	)	(5,520	)	23,631		103		(19,138	)
Deductions for surrender charges (note 2d)		-		-		(395	)	(406	)	-		(517	)	-		-
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(14,543	)	(8,193	)	(200,420	)	(123,844	)	(49,512	)	(49,328	)	(11,490	)	(14,732	)
Asset charges (note 3):
MSP contracts		(81	)	(272	)	(1,140	)	(1,083	)	(487	)	(573	)	(4	)	(93	)
SL contracts or LSFP contracts		(226	)	-		(2,972	)	(2,052	)	(1,239	)	(1,411	)	(42	)	(109	)
Adjustments to maintain reserves		(155	)	50		(1,846	)	52		(77	)	15		(141	)	(20	)
Net equity transactions		319,994		(37,565	)	1,276,685		823,972		(125,642	)	87,884		2,023		(62,555	)
Net change in contract owners’ equity		185,963		(10,242	)	(1,297,191	)	1,791,489		(714,579	)	314,159		(53,267	)	(47,472	)
Contract owners’ equity beginning of period		261,785		272,027		4,278,869		2,487,380		1,386,862		1,072,703		150,301		197,773
Contract owners’ equity end of period	$	447,748		261,785		2,981,678		4,278,869		672,283		1,386,862		97,034		150,301
CHANGES IN UNITS:
Beginning units		17,140		19,476		358,074		285,306		265,442		249,722		8,172		11,346
Units purchased		19,409		4,527		167,777		180,836		28,274		82,861		1,936		2,233
Units redeemed		(1,510	)	(6,863	)	(76,441	)	(108,068	)	(63,688	)	(67,141	)	(1,804	)	(5,407	)
Ending units		35,039		17,140		449,410		358,074		230,028		265,442		8,304		8,172

(Continued)

32

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	JAIGS					JAIGS2				AMTB				MIGIC
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	84,540		(9,182	)	122,804		(3,985	)	132,547		79,945		36		(658	)
Realized gain (loss) on investments		63,421		1,313,259		(109,102	)	548,537		(80,350	)	(40,669	)	(349	)	18,026
Change in unrealized gain (loss) on investments		(3,103,948	)	(135,689	)	(4,262,223	)	655,312		(532,398	)	120,290		(101,581	)	9,766
Reinvested capital gains		555,219		-		806,091		-		-		-		9,401		-
Net increase (decrease) in contract owners’ equity resulting from operations		(2,400,768	)	1,168,388		(3,442,430	)	1,199,864		(480,201	)	159,566		(92,493	)	27,134
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		24,832		808,580		431,309		324,636		112,203		141,453		14,179		17,082
Transfers between funds		(307,655	)	(994,215	)	396,020		2,261,046		(140,823	)	135,383		6,440		(41,308	)
Surrenders (note 6)		(79,929	)	(1,058,520	)	(342,714	)	(99,526	)	(415,631	)	(325,168	)	(29,080	)	(40,051	)
Death benefits (note 4)		(71	)	(16,090	)	(12,596	)	(18,717	)	(20,590	)	(314	)	-		-
Net policy repayments (loans) (note 5)		(32,493	)	(95,616	)	(136,042	)	(78,857	)	218,018		(85,061	)	21,584		6,014
Deductions for surrender charges (note 2d)		(86	)	672		(3,119	)	-		-		(147	)	-		-
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(143,803	)	(155,820	)	(263,886	)	(185,825	)	(152,021	)	(137,326	)	(12,556	)	(13,459	)
Asset charges (note 3):
MSP contracts		(747	)	(988	)	(1,465	)	(2,178	)	(4,543	)	(5,401	)	-		-
SL contracts or LSFP contracts		(5,288	)	(6,331	)	-		-		(946	)	(1,565	)	(68	)	(85	)
Adjustments to maintain reserves		(220	)	108		(137	)	11		(380	)	51		(115	)	53
Net equity transactions		(545,460	)	(1,518,220	)	67,370		2,200,590		(404,713	)	(278,095	)	384		(71,754	)
Net change in contract owners’ equity		(2,946,228	)	(349,832	)	(3,375,060	)	3,400,454		(884,914	)	(118,529	)	(92,109	)	(44,620	)
Contract owners’ equity beginning of period		4,878,901		5,228,733		6,298,343		2,897,889		3,656,758		3,775,287		239,891		284,511
Contract owners’ equity end of period	$	1,932,673		4,878,901		2,923,283		6,298,343		2,771,844		3,656,758		147,782		239,891
CHANGES IN UNITS:
Beginning units		279,678		380,508		426,652		250,138		194,058		215,938		15,528		20,452
Units purchased		6,971		22,947		75,179		254,072		24,107		35,224		1,989		3,803
Units redeemed		(54,063	)	(123,777	)	(85,256	)	(77,558	)	(50,677	)	(57,104	)	(2,276	)	(8,727	)
Ending units		232,586		279,678		416,575		426,652		167,488		194,058		15,241		15,528

(Continued)

33

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	MVFIC					GVAAA2				GVABD2				GVAGG2
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	8,703		4,523		23,983		14,440		59,880		48,303		32,366		26,693
Realized gain (loss) on investments		(120,418	)	103,368		(60,518	)	9,010		(63,167	)	8,655		(56,626	)	30,261
Change in unrealized gain (loss) on investments		(690,613	)	(52,992	)	(373,002	)	(652	)	(145,166	)	(41,696	)	(716,844	)	90,156
Reinvested capital gains		56,873		19,114		14,350		372		1,035		-		49,565		-
Net increase (decrease) in contract owners’ equity resulting from operations		(745,455	)	74,013		(395,187	)	23,170		(147,418	)	15,262		(691,539	)	147,110
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		139,702		65,786		57,923		37,287		97,393		33,756		133,746		80,742
Transfers between funds		1,030,188		378,505		422,134		621,660		671,905		517,779		306,882		529,333
Surrenders (note 6)		(166,254	)	(47,779	)	(44,977	)	(31,288	)	(283,265	)	(6,547	)	(81,865	)	(100,578	)
Death benefits (note 4)		(2,485	)	(6,837	)	(28,159	)	-		(29,020	)	-		-		-
Net policy repayments (loans) (note 5)		(5,353	)	(34,173	)	(21,057	)	(10,199	)	(17,817	)	449		(24,696	)	(19,513	)
Deductions for surrender charges (note 2d)		-		-		-		-		-		-		(26	)	-
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(70,869	)	(33,930	)	(40,829	)	(25,291	)	(35,890	)	(14,433	)	(56,028	)	(37,838	)
Asset charges (note 3):
MSP contracts		(283	)	(336	)	(1,707	)	(1,518	)	(736	)	(204	)	(1,073	)	(713	)
SL contracts or LSFP contracts		(663	)	(934	)	-		-		-		-		-		-
Adjustments to maintain reserves		(195	)	38		(109	)	37		(55	)	4		(108	)	(3	)
Net equity transactions		923,788		320,340		343,219		590,688		402,515		530,804		276,832		451,430
Net change in contract owners’ equity		178,333		394,353		(51,968	)	613,858		255,097		546,066		(414,707	)	598,540
Contract owners’ equity beginning of period		1,335,865		941,512		988,641		374,783		904,666		358,600		1,489,047		890,507
Contract owners’ equity end of period	$	1,514,198		1,335,865		936,673		988,641		1,159,763		904,666		1,074,340		1,489,047
CHANGES IN UNITS:
Beginning units		68,932		52,354		88,906		35,632		84,040		34,162		121,136		82,430
Units purchased		57,510		35,803		49,788		64,078		60,365		56,189		40,580		52,897
Units redeemed		(9,968	)	(19,225	)	(18,206	)	(10,804	)	(24,258	)	(6,311	)	(18,582	)	(14,191	)
Ending units		116,474		68,932		120,488		88,906		120,147		84,040		143,134		121,136

(Continued)

34

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	GVAGR2					GVAGI2				NVCRA1			NVCRB1
	2008			2007		2008		2007		2008		2007	2008		2007
Investment activity:
Net investment income (loss)	$	22,997		1,112		12,810		3,988		554		-	959		-
Realized gain (loss) on investments		2,867		30,464		(46,688	)	37		(75	)	-	(33,841	)	-
Change in unrealized gain (loss) on investments		(920,627	)	67,722		(282,018	)	(10,159	)	(6,387	)	-	(8,167	)	-
Reinvested capital gains		88,613		352		239		-		2,722		-	518		-
Net increase (decrease) in contract owners’ equity resulting from operations		(806,150	)	99,650		(315,657	)	(6,134	)	(3,186	)	-	(40,531	)	-
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		88,801		87,108		27,425		35,251		1,150		-	710		-
Transfers between funds		452,776		870,992		609,116		332,866		127,836		-	149,909		-
Surrenders (note 6)		(142,604	)	(25,662	)	(65,858	)	-		-		-	-		-
Death benefits (note 4)		-		-		-		-		-		-	-		-
Net policy repayments (loans) (note 5)		(23,303	)	(32,080	)	(20,134	)	(1,963	)	-		-	621		-
Deductions for surrender charges (note 2d)		-		-		-		-		-		-	-		-
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(70,867	)	(44,057	)	(12,362	)	(1,218	)	(783	)	-	(5,144	)	-
Asset charges (note 3):
MSP contracts		(433	)	(198	)	(135	)	-		-		-	-		-
SL contracts or LSFP contracts		-		-		-		-		-		-	-		-
Adjustments to maintain reserves		(69	)	15		(50	)	25		(12	)	-	(15	)	-
Net equity transactions		304,301		856,118		538,002		364,961		128,191		-	146,081		-
Net change in contract owners’ equity		(501,849	)	955,768		222,345		358,827		125,005		-	105,550		-
Contract owners’ equity beginning of period		1,602,351		646,583		358,827		-		-		-	-		-
Contract owners’ equity end of period	$	1,100,502		1,602,351		581,172		358,827		125,005		-	105,550		-
CHANGES IN UNITS:
Beginning units		139,420		62,626		36,398		-		-		-	-		-
Units purchased		58,152		87,199		64,533		36,717		19,679		-	13,966		-
Units redeemed		(25,031	)	(10,405	)	(5,287	)	(319	)	(120	)	-	(727	)	-
Ending units		172,541		139,420		95,644		36,398		19,559		-	13,239		-

(Continued)

35

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	NVCCA1				NVCCN1			NVCMD1			NVCMA1
	2008			2007	2008		2007	2008		2007	2008		2007
Investment activity:
Net investment income (loss)	$	1,803		-	528		-	3,605		-	810		-
Realized gain (loss) on investments		(1,469	)	-	(179	)	-	(6,005	)	-	(824	)	-
Change in unrealized gain (loss) on investments		(52,084	)	-	(3,190	)	-	(73,105	)	-	(21,419	)	-
Reinvested capital gains		1,368		-	85		-	2,532		-	956		-
Net increase (decrease) in contract owners’ equity resulting from operations		(50,382	)	-	(2,756	)	-	(72,973	)	-	(20,477	)	-
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		3,297		-	1,292		-	316		-	2,596		-
Transfers between funds		194,195		-	52,137		-	468,436		-	108,687		-
Surrenders (note 6)		-		-	-		-	(10,107	)	-	-		-
Death benefits (note 4)		-		-	-		-	-		-	-		-
Net policy repayments (loans) (note 5)		-		-	-		-	2,944		-	(3,342	)	-
Deductions for surrender charges (note 2d)		-		-	-		-	-		-	-		-
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(3,965	)	-	(1,040	)	-	(11,579	)	-	(2,486	)	-
Asset charges (note 3):
MSP contracts		-		-	(15	)	-	-		-	-		-
SL contracts or LSFP contracts		-		-	-		-	-		-	-		-
Adjustments to maintain reserves		(7	)	-	(16	)	-	(22	)	-	(13	)	-
Net equity transactions		193,520		-	52,358		-	449,988		-	105,442		-
Net change in contract owners’ equity		143,138		-	49,602		-	377,015		-	84,965		-
Contract owners’ equity beginning of period		-		-	-		-	-		-	-		-
Contract owners’ equity end of period	$	143,138		-	49,602		-	377,015		-	84,965		-
CHANGES IN UNITS:
Beginning units		-		-	-		-	-		-	-		-
Units purchased		20,274		-	5,562		-	52,939		-	13,039		-
Units redeemed		(493	)	-	(117	)	-	(3,349	)	-	(661	)	-
Ending units		19,781		-	5,445		-	49,590		-	12,378		-

(Continued)

36

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	NVCMC1				NVCBD1			HIBF				HIBF3
	2008			2007	2008		2007	2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	503		-	256		-	14,628		15,779		79,852		47,409
Realized gain (loss) on investments		(148	)	-	(158	)	-	(11,408	)	249		(92,752	)	(6,384	)
Change in unrealized gain (loss) on investments		223		-	75		-	(54,160	)	(9,291	)	(254,774	)	(35,536	)
Reinvested capital gains		192		-	-		-	-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations		770		-	173		-	(50,940	)	6,737		(267,674	)	5,489
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		1,182		-	151		-	-		(28	)	140,722		102,999
Transfers between funds		63,638		-	16,262		-	(12,333	)	(43,864	)	249,188		301,379
Surrenders (note 6)		-		-	-		-	(15,075	)	(7,418	)	(26,471	)	(81,540	)
Death benefits (note 4)		-		-	-		-	(1,827	)	-		(6,247	)	-
Net policy repayments (loans) (note 5)		383		-	-		-	(609	)	(1,235	)	(6,332	)	58,637
Deductions for surrender charges (note 2d)		-		-	-		-	-		-		-		(10	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(1,103	)	-	(239	)	-	(7,297	)	(8,755	)	(39,580	)	(30,077	)
Asset charges (note 3):
MSP contracts		-		-	-		-	(491	)	(548	)	(577	)	(478	)
SL contracts or LSFP contracts		-		-	-		-	(136	)	(175	)	(219	)	(126	)
Adjustments to maintain reserves		(3	)	-	(2	)	-	(131	)	(22	)	(118	)	(15	)
Net equity transactions		64,097		-	16,172		-	(37,899	)	(62,045	)	310,366		350,769
Net change in contract owners’ equity		64,867		-	16,345		-	(88,839	)	(55,308	)	42,692		356,258
Contract owners’ equity beginning of period		-		-	-		-	201,776		257,084		662,689		306,431
Contract owners’ equity end of period	$	64,867		-	16,345		-	112,937		201,776		705,381		662,689
CHANGES IN UNITS:
Beginning units		-		-	-		-	14,354		18,872		55,808		26,516
Units purchased		8,004		-	1,674		-	170		1,232		37,019		37,221
Units redeemed		(231	)	-	(25	)	-	(3,357	)	(5,750	)	(9,871	)	(7,929	)
Ending units		7,773		-	1,649		-	11,167		14,354		82,956		55,808

(Continued)

37

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	GEM					GEM3				GVGU1				GIG
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	8,890		(224	)	37,390		11,173		41,914		42,295		11,191		(8,268	)
Realized gain (loss) on investments		367,426		249,154		(36,098	)	493,271		(221,691	)	287,351		(145,125	)	440,692
Change in unrealized gain (loss) on investments		(2,413,728	)	491,434		(5,531,866	)	741,466		(522,176	)	(356,418	)	(1,093,489	)	(153,096	)
Reinvested capital gains		409,664		301,255		1,178,652		488,860		21,235		421,869		237,212		203,237
Net increase (decrease) in contract owners’ equity resulting from operations		(1,627,748	)	1,041,619		(4,351,922	)	1,734,770		(680,718	)	395,097		(990,211	)	482,565
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		1,094		198		331,324		413,503		98,291		91,867		50,189		220,200
Transfers between funds		(790,405	)	434,873		(326,453	)	3,408,357		(402,582	)	(466,133	)	(835,423	)	216,474
Surrenders (note 6)		(90,982	)	(44,565	)	(461,432	)	(239,734	)	(102,044	)	(147,504	)	(65,164	)	(98,278	)
Death benefits (note 4)		(21,723	)	-		(1,845	)	-		-		(4,445	)	-		(4,622	)
Net policy repayments (loans) (note 5)		(16,344	)	(71,267	)	(50,698	)	(47,217	)	(12,823	)	48,201		4,527		(52,343	)
Deductions for surrender charges (note 2d)		-		-		(1,379	)	-		-		-		-		-
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(71,516	)	(72,679	)	(246,421	)	(172,952	)	(62,152	)	(80,736	)	(62,936	)	(68,672	)
Asset charges (note 3):
MSP contracts		-		-		(2,302	)	(2,942	)	(584	)	(836	)	(432	)	(404	)
SL contracts or LSFP contracts		(612	)	(1,217	)	(2,697	)	(3,120	)	(1,658	)	(1,643	)	(673	)	(1,112	)
Adjustments to maintain reserves		(1,015	)	94		(1,911	)	403		(324	)	127		(194	)	43
Net equity transactions		(991,503	)	245,437		(763,814	)	3,356,298		(483,876	)	(561,102	)	(910,106	)	211,286
Net change in contract owners’ equity		(2,619,251	)	1,287,056		(5,115,736	)	5,091,068		(1,164,594	)	(166,005	)	(1,900,317	)	693,851
Contract owners’ equity beginning of period		3,604,228		2,317,172		7,926,201		2,835,133		2,312,452		2,478,457		2,867,090		2,173,239
Contract owners’ equity end of period	$	984,977		3,604,228		2,810,465		7,926,201		1,147,858		2,312,452		966,773		2,867,090
CHANGES IN UNITS:
Beginning units		103,806		95,972		302,716		157,004		96,884		125,056		176,356		169,108
Units purchased		3,278		23,982		28,476		173,561		9,390		24,711		8,318		90,476
Units redeemed		(40,215	)	(16,148	)	(75,362	)	(27,849	)	(34,444	)	(52,883	)	(74,847	)	(83,228	)
Ending units		66,869		103,806		255,830		302,716		71,830		96,884		109,827		176,356

(Continued)

38

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	GIG3				GVGF1				GBF				CAF
	2008			2007	2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	243		-	8,067		24,514		492,424		430,848		(45,750	)	(83,221	)
Realized gain (loss) on investments		(5,992	)	-	(249,384	)	5,349		(123,195	)	(171,239	)	(1,037,461	)	(1,810,057	)
Change in unrealized gain (loss) on investments		(14,411	)	-	(131,228	)	(173,066	)	567,500		444,552		(5,462,625	)	4,820,907
Reinvested capital gains		5,376		-	-		127,951		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations		(14,784	)	-	(372,545	)	(15,252	)	936,729		704,161		(6,545,836	)	2,927,629
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		681		-	48,889		30,637		711,251		602,352		1,476,883		1,633,268
Transfers between funds		36,945		-	19,979		(112,089	)	4,330,480		382,878		(445,026	)	(689,019	)
Surrenders (note 6)		(11	)	-	(12,512	)	(13,454	)	(497,718	)	(819,647	)	(1,041,927	)	(1,325,699	)
Death benefits (note 4)		-		-	-		-		(116,995	)	(67,562	)	(67,965	)	(87,576	)
Net policy repayments (loans) (note 5)		93		-	(67,219	)	21,838		(214,412	)	(50,671	)	27,195		(3,743	)
Deductions for surrender charges (note 2d)		-		-	-		-		(20	)	(2,196	)	(4,083	)	(4,135	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(420	)	-	(22,242	)	(32,683	)	(662,659	)	(525,426	)	(1,200,750	)	(1,248,902	)
Asset charges (note 3):
MSP contracts		(37	)	-	(34	)	(210	)	(12,177	)	(11,173	)	(3,167	)	(4,347	)
SL contracts or LSFP contracts		-		-	(574	)	(737	)	(3,864	)	(4,866	)	(4,995	)	(8,699	)
Adjustments to maintain reserves		(12	)	-	(166	)	(62	)	(149	)	113		(395	)	265
Net equity transactions		37,239		-	(33,879	)	(106,760	)	3,533,737		(496,198	)	(1,264,230	)	(1,738,587	)
Net change in contract owners’ equity		22,455		-	(406,424	)	(122,012	)	4,470,466		207,963		(7,810,066	)	1,189,042
Contract owners’ equity beginning of period		-		-	782,667		904,679		11,301,337		11,093,374		17,560,377		16,371,335
Contract owners’ equity end of period	$	22,455		-	376,243		782,667		15,771,803		11,301,337		9,750,311		17,560,377
CHANGES IN UNITS:
Beginning units		-		-	41,140		47,062		472,828		494,136		843,818		937,894
Units purchased		4,169		-	8,878		12,149		264,322		93,776		155,632		215,288
Units redeemed		(90	)	-	(12,845	)	(18,071	)	(78,090	)	(115,084	)	(238,132	)	(309,364	)
Ending units		4,079		-	37,173		41,140		659,060		472,828		761,318		843,818

(Continued)

39

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	GVGH1					GVGHS				GVIX6				GVIDA
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	(1,690	)	(2,873	)	(1,052	)	(2,030	)	6,157		2,648		48,584		60,358
Realized gain (loss) on investments		263		6,064		(80,767	)	17,898		(8,862	)	2,156		(123,041	)	108,358
Change in unrealized gain (loss) on investments		(149,340	)	40,103		(176,458	)	24,158		(205,696	)	5,211		(1,906,004	)	(142,271	)
Reinvested capital gains		32,434		8,521		58,100		8,113		575		543		518,286		143,661
Net increase (decrease) in contract owners’ equity resulting from operations		(118,333	)	51,815		(200,177	)	48,139		(207,826	)	10,558		(1,462,175	)	170,106
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		-		-		29,513		24,204		4,017		7,956		232,455		280,127
Transfers between funds		118,391		(69,676	)	246,388		112,482		106,218		357,926		(198,944	)	1,617,405
Surrenders (note 6)		(911	)	(2,450	)	(10,967	)	(24,517	)	(2,993	)	(3,221	)	(785,152	)	(58,738	)
Death benefits (note 4)		(1,218	)	-		-		(2,906	)	-		-		(19,775	)	(6,375	)
Net policy repayments (loans) (note 5)		(29,906	)	(3,127	)	11,121		(1,604	)	263		(445	)	(11,426	)	(212,269	)
Deductions for surrender charges (note 2d)		-		-		-		-		-		-		-		-
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(11,991	)	(12,404	)	(25,935	)	(16,311	)	(9,600	)	(4,051	)	(175,108	)	(162,086	)
Asset charges (note 3):
MSP contracts		(125	)	(252	)	(21	)	(8	)	(2	)	-		(630	)	(797	)
SL contracts or LSFP contracts		(76	)	(106	)	(343	)	(94	)	-		-		(25	)	-
Adjustments to maintain reserves		(115	)	(8	)	(75	)	(31	)	(72	)	20		(140	)	32
Net equity transactions		74,049		(88,023	)	249,681		91,215		97,831		358,185		(958,745	)	1,457,299
Net change in contract owners’ equity		(44,284	)	(36,208	)	49,504		139,354		(109,995	)	368,743		(2,420,920	)	1,627,405
Contract owners’ equity beginning of period		404,218		440,426		548,307		408,953		386,026		17,283		4,519,908		2,892,503
Contract owners’ equity end of period	$	359,934		404,218		597,811		548,307		276,031		386,026		2,098,988		4,519,908
CHANGES IN UNITS:
Beginning units		27,194		33,282		44,506		37,422		32,394		1,582		279,196		188,908
Units purchased		11,778		1,461		26,843		27,119		11,571		32,017		21,917		130,334
Units redeemed		(6,173	)	(7,549	)	(6,289	)	(20,035	)	(3,045	)	(1,205	)	(94,715	)	(40,046	)
Ending units		32,799		27,194		65,060		44,506		40,920		32,394		206,398		279,196

(Continued)

40

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	GVIDC					GVIDM				GVDMA				GVDMC
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	24,733		20,596		135,769		153,184		126,421		123,981		60,263		54,626
Realized gain (loss) on investments		(23,113	)	5,426		(90,026	)	364,277		(94,442	)	302,933		(17,593	)	140,379
Change in unrealized gain (loss) on investments		(73,535	)	(7,091	)	(2,081,356	)	(250,262	)	(3,196,425	)	(198,904	)	(581,692	)	(125,658	)
Reinvested capital gains		15,025		12,858		493,348		112,849		703,320		149,917		129,982		60,436
Net increase (decrease) in contract owners’ equity resulting from operations		(56,890	)	31,789		(1,542,265	)	380,048		(2,461,126	)	377,927		(409,040	)	129,783
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		29,904		26,450		337,041		470,597		382,555		405,928		186,967		183,625
Transfers between funds		155,787		443,761		14,799		(963,507	)	574,827		946,432		553,266		25,337
Surrenders (note 6)		(42,171	)	-		(724,604	)	(398,274	)	(428,349	)	(666,186	)	(179,032	)	(664,396	)
Death benefits (note 4)		-		-		(172,288	)	(15,842	)	(5,329	)	-		(3,261	)	-
Net policy repayments (loans) (note 5)		(53,816	)	(10,305	)	(116,741	)	39,800		(115,456	)	(172,324	)	19,854		(10,594	)
Deductions for surrender charges (note 2d)		-		-		-		(81	)	(179	)	(819	)	-		-
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(49,554	)	(34,836	)	(360,243	)	(356,953	)	(406,891	)	(391,605	)	(98,694	)	(80,916	)
Asset charges (note 3):
MSP contracts		(189	)	(251	)	(9,699	)	(11,053	)	(4,216	)	(5,261	)	(1,596	)	(1,705	)
SL contracts or LSFP contracts		(237	)	(288	)	(713	)	(851	)	(1,853	)	(1,994	)	(30	)	(21	)
Adjustments to maintain reserves		(140	)	33		(151	)	(2	)	(155	)	8		(84	)	(119	)
Net equity transactions		39,584		424,564		(1,032,599	)	(1,236,166	)	(5,046	)	114,179		477,390		(548,789	)
Net change in contract owners’ equity		(17,306	)	456,353		(2,574,864	)	(856,118	)	(2,466,172	)	492,106		68,350		(419,006	)
Contract owners’ equity beginning of period		900,606		444,253		7,028,682		7,884,800		7,390,556		6,898,450		2,256,243		2,675,249
Contract owners’ equity end of period	$	883,300		900,606		4,453,818		7,028,682		4,924,384		7,390,556		2,324,593		2,256,243
CHANGES IN UNITS:
Beginning units		71,116		36,936		487,082		575,574		476,896		470,490		167,230		209,012
Units purchased		21,103		38,999		68,848		71,214		111,074		155,493		59,929		24,621
Units redeemed		(17,763	)	(4,819	)	(153,612	)	(159,706	)	(123,248	)	(149,087	)	(23,065	)	(66,403	)
Ending units		74,456		71,116		402,318		487,082		464,722		476,896		204,094		167,230

(Continued)

41

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	NVLCP1				SGRF				MCIF				SAM
	2008			2007	2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	3		-	(4,548	)	(8,719	)	39,795		58,068		569,128		1,300,226
Realized gain (loss) on investments		-		-	1,758		204,611		68,127		578,665		-		-
Change in unrealized gain (loss) on investments		1		-	(493,174	)	(66,657	)	(2,710,007	)	(339,345	)	-		-
Reinvested capital gains		-		-	-		-		345,867		212,900		-		-
Net increase (decrease) in contract owners’ equity resulting from operations		4		-	(495,964	)	129,235		(2,256,218	)	510,288		569,128		1,300,226
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		167		-	48,533		52,919		200,629		259,335		2,357,487		6,078,889
Transfers between funds		-		-	(97,662	)	(301,001	)	(144,973	)	(461,186	)	14,867,022		8,614,030
Surrenders (note 6)		-		-	(156,351	)	(67,940	)	(421,446	)	(468,682	)	(16,305,953	)	(5,798,357	)
Death benefits (note 4)		-		-	(25,084	)	-		(79,629	)	(10,448	)	(374,013	)	(148,700	)
Net policy repayments (loans) (note 5)		-		-	58,777		(21,931	)	2,563		(53,720	)	1,552,252		(468,504	)
Deductions for surrender charges (note 2d)		-		-	(120	)	-		-		(237	)	(2,880	)	(24,664	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		-		-	(41,983	)	(48,872	)	(248,482	)	(267,526	)	(2,071,291	)	(1,868,973	)
Asset charges (note 3):
MSP contracts		-		-	(349	)	(430	)	(3,016	)	(4,519	)	(29,949	)	(24,284	)
SL contracts or LSFP contracts		-		-	(267	)	(553	)	(2,337	)	(3,922	)	(20,899	)	(22,048	)
Adjustments to maintain reserves		(12	)	-	(74	)	(10	)	(221	)	(90	)	(562	)	(615	)
Net equity transactions		155		-	(214,580	)	(387,818	)	(696,912	)	(1,010,995	)	(28,786	)	6,336,774
Net change in contract owners’ equity		159		-	(710,544	)	(258,583	)	(2,953,130	)	(500,707	)	540,342		7,637,000
Contract owners’ equity beginning of period		-		-	1,198,739		1,457,322		6,710,024		7,210,731		36,099,929		28,462,929
Contract owners’ equity end of period	$	159		-	488,195		1,198,739		3,756,894		6,710,024		36,640,271		36,099,929
CHANGES IN UNITS:
Beginning units		-		-	166,784		219,832		388,144		447,638		2,150,644		1,855,436
Units purchased		16		-	15,503		38,403		61,000		56,916		934,218		1,057,744
Units redeemed		-		-	(55,997	)	(91,451	)	(105,478	)	(116,410	)	(984,146	)	(762,536	)
Ending units		16		-	126,290		166,784		343,666		388,144		2,100,716		2,150,644

(Continued)

42

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	NVMIG3				GVDIVI				GVDIV3				NVMLG1
	2008			2007	2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	(1	)	-	5,567		11,888		17,572		36,292		3		-
Realized gain (loss) on investments		(1	)	-	(17,065	)	42,345		(107,080	)	80,524		(45	)	-
Change in unrealized gain (loss) on investments		(5	)	-	(328,287	)	(84,773	)	(974,551	)	(227,805	)	(580	)	-
Reinvested capital gains		-		-	67,064		55,037		210,461		158,785		-		-
Net increase (decrease) in contract owners’ equity resulting from operations		(7	)	-	(272,721	)	24,497		(853,598	)	47,796		(622	)	-
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		18		-	(1	)	(203	)	91,287		126,294		(32	)	-
Transfers between funds		1,451		-	(83,599	)	(142,532	)	(406,113	)	19,917		1,982		-
Surrenders (note 6)		-		-	(20,492	)	(48,664	)	(76,806	)	(77,167	)	-		-
Death benefits (note 4)		-		-	-		-		(5,456	)	-		-		-
Net policy repayments (loans) (note 5)		-		-	(2,477	)	(7,091	)	17,168		(11,578	)	-		-
Deductions for surrender charges (note 2d)		-		-	-		-		-		-		-		-
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(7	)	-	(16,669	)	(24,230	)	(53,585	)	(62,342	)	(8	)	-
Asset charges (note 3):
MSP contracts		-		-	(144	)	(338	)	(333	)	(470	)	(5	)	-
SL contracts or LSFP contracts		-		-	(51	)	(65	)	(453	)	(759	)	-		-
Adjustments to maintain reserves		2		-	(212	)	69		1,181		(42	)	(4	)	-
Net equity transactions		1,464		-	(123,645	)	(223,054	)	(433,110	)	(6,147	)	1,933		-
Net change in contract owners’ equity		1,457		-	(396,366	)	(198,557	)	(1,286,708	)	41,649		1,311		-
Contract owners’ equity beginning of period		-		-	677,085		875,642		2,185,426		2,143,777		-		-
Contract owners’ equity end of period	$	1,457		-	280,719		677,085		898,718		2,185,426		1,311		-
CHANGES IN UNITS:
Beginning units		-		-	29,250		38,784		153,166		153,920		-		-
Units purchased		239		-	-		2,196		17,544		28,548		208		-
Units redeemed		(1	)	-	(6,539	)	(11,730	)	(52,727	)	(29,302	)	(2	)	-
Ending units		238		-	22,711		29,250		117,983		153,166		206		-

(Continued)

43

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	NVMLV1				NVMMG1			SCGF				SCVF
	2008			2007	2008		2007	2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	407		-	-		-	(6,678	)	(8,972	)	42,426		62,069
Realized gain (loss) on investments		(20,030	)	-	(775	)	-	(105,359	)	41,433		(751,712	)	89,149
Change in unrealized gain (loss) on investments		(6,469	)	-	(609	)	-	(655,281	)	88,470		(1,883,749	)	(2,150,010	)
Reinvested capital gains		-		-	-		-	-		-		-		1,325,777
Net increase (decrease) in contract owners’ equity resulting from operations		(26,092	)	-	(1,384	)	-	(767,318	)	120,931		(2,593,035	)	(673,015	)
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		-		-	(24	)	-	46,867		65,813		338,074		469,422
Transfers between funds		121,373		-	3,046		-	53,917		280,244		(665,221	)	(1,933,070	)
Surrenders (note 6)		-		-	-		-	(51,190	)	(63,312	)	(458,039	)	(456,149	)
Death benefits (note 4)		-		-	-		-	(44,869	)	(7,821	)	(80,363	)	(24,170	)
Net policy repayments (loans) (note 5)		-		-	-		-	(23,201	)	(26,223	)	(131,703	)	(157,882	)
Deductions for surrender charges (note 2d)		-		-	-		-	-		(625	)	(161	)	(1,323	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(835	)	-	(22	)	-	(54,853	)	(60,800	)	(321,728	)	(363,080	)
Asset charges (note 3):
MSP contracts		-		-	(13	)	-	(284	)	(432	)	(3,619	)	(6,176	)
SL contracts or LSFP contracts		-		-	-		-	(393	)	(862	)	(6,159	)	(12,692	)
Adjustments to maintain reserves		(4	)	-	(4	)	-	(69	)	20		(355	)	(129	)
Net equity transactions		120,534		-	2,983		-	(74,075	)	186,002		(1,329,274	)	(2,485,249	)
Net change in contract owners’ equity		94,442		-	1,599		-	(841,393	)	306,933		(3,922,309	)	(3,158,264	)
Contract owners’ equity beginning of period		-		-	-		-	1,719,609		1,412,676		8,872,878		12,031,142
Contract owners’ equity end of period	$	94,442		-	1,599		-	878,216		1,719,609		4,950,569		8,872,878
CHANGES IN UNITS:
Beginning units		-		-	-		-	199,360		179,264		402,340		506,404
Units purchased		15,035		-	260		-	30,147		75,738		30,415		94,730
Units redeemed		(129	)	-	(5	)	-	(38,799	)	(55,642	)	(100,855	)	(198,794	)
Ending units		14,906		-	255		-	190,708		199,360		331,900		402,340

(Continued)

44

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	SCF					TRF				GVUS1				NVNMO1
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	68,494		(140,669	)	472,384		316,814		1,647		4,256		(6	)	-
Realized gain (loss) on investments		(323,111	)	1,046,045		(4,546,171	)	(2,940,386	)	(77,696	)	9,871		(16	)	-
Change in unrealized gain (loss) on investments		(14,168,996	)	(4,422,642	)	(35,324,300	)	4,596,818		(276,877	)	(52,502	)	(736	)	-
Reinvested capital gains		4,526,102		4,100,839		9,583,600		3,721,687		-		109,742		-		-
Net increase (decrease) in contract owners’ equity resulting from operations		(9,897,511	)	583,573		(29,814,487	)	5,694,933		(352,926	)	71,367		(758	)	-
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		1,003,351		1,266,101		4,992,536		5,551,188		11,475		16,622		-		-
Transfers between funds		(1,017,464	)	(882,929	)	(1,800,074	)	(2,488,578	)	(44,006	)	156,223		1,676		-
Surrenders (note 6)		(1,408,827	)	(2,197,463	)	(4,602,104	)	(4,697,688	)	(25,770	)	(3,133	)	-		-
Death benefits (note 4)		(122,544	)	(166,560	)	(498,485	)	(399,632	)	-		-		-		-
Net policy repayments (loans) (note 5)		(1,738	)	(72,672	)	297,738		(495,927	)	(5,009	)	(3,122	)	-		-
Deductions for surrender charges (note 2d)		(231	)	(3,076	)	(1,263	)	(10,966	)	-		-		-		-
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(1,074,871	)	(1,155,722	)	(4,811,045	)	(4,963,358	)	(21,999	)	(23,050	)	(35	)	-
Asset charges (note 3):
MSP contracts		(10,633	)	(17,239	)	(19,381	)	(26,086	)	(396	)	(576	)	-		-
SL contracts or LSFP contracts		(8,825	)	(16,884	)	(9,834	)	(18,519	)	(221	)	(199	)	-		-
Adjustments to maintain reserves		(574	)	(184	)	208		(333	)	(128	)	(2	)	(2	)	-
Net equity transactions		(2,642,356	)	(3,246,628	)	(6,451,704	)	(7,549,899	)	(86,054	)	142,763		1,639		-
Net change in contract owners’ equity		(12,539,867	)	(2,663,055	)	(36,266,191	)	(1,854,966	)	(438,980	)	214,130		881		-
Contract owners’ equity beginning of period		27,545,050		30,208,105		75,905,668		77,760,634		735,537		521,407		-		-
Contract owners’ equity end of period	$	15,005,183		27,545,050		39,639,477		75,905,668		296,557		735,537		881		-
CHANGES IN UNITS:
Beginning units		732,968		822,602		1,803,842		2,038,686		42,088		33,192		-		-
Units purchased		75,354		139,300		182,101		310,137		2,149		15,813		177		-
Units redeemed		(161,939	)	(228,934	)	(363,828	)	(544,981	)	(10,246	)	(6,917	)	(6	)	-
Ending units		646,383		732,968		1,622,115		1,803,842		33,991		42,088		171		-

(Continued)

45

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	NVNSR1				NVSTB2			GGTC				GGTC3
	2008			2007	2008		2007	2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	1		-	918		-	(2,248	)	(3,531	)	(2,068	)	(2,437	)
Realized gain (loss) on investments		-		-	(4,418	)	-	12,645		40,145		(104,633	)	29,787
Change in unrealized gain (loss) on investments		6		-	(216	)	-	(272,283	)	55,567		(235,401	)	28,926
Reinvested capital gains		-		-	-		-	42,632		-		59,682		-
Net increase (decrease) in contract owners’ equity resulting from operations		7		-	(3,716	)	-	(219,254	)	92,181		(282,420	)	56,276
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		423		-	101		-	-		(25	)	198,922		60,949
Transfers between funds		-		-	32,659		-	(93,259	)	28,137		(283,889	)	402,186
Surrenders (note 6)		-		-	(477	)	-	(39,754	)	(19,297	)	(177,558	)	(32,344	)
Death benefits (note 4)		-		-	-		-	(1,191	)	(959	)	-		-
Net policy repayments (loans) (note 5)		-		-	704		-	(1,114	)	(18,140	)	23,591		22,956
Deductions for surrender charges (note 2d)		-		-	-		-	-		-		-		-
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(1	)	-	(1,632	)	-	(13,159	)	(19,424	)	(22,813	)	(20,836	)
Asset charges (note 3):
MSP contracts		-		-	(2	)	-	-		-		(90	)	(11	)
SL contracts or LSFP contracts		-		-	-		-	(29	)	(159	)	(64	)	(22	)
Adjustments to maintain reserves		(4	)	-	(13	)	-	(26	)	(7	)	(123	)	33
Net equity transactions		418		-	31,340		-	(148,532	)	(29,874	)	(262,024	)	432,911
Net change in contract owners’ equity		425		-	27,624		-	(367,786	)	62,307		(544,444	)	489,187
Contract owners’ equity beginning of period		-		-	-		-	556,335		494,028		768,676		279,489
Contract owners’ equity end of period	$	425		-	27,624		-	188,549		556,335		224,232		768,676
CHANGES IN UNITS:
Beginning units		-		-	-		-	138,886		146,526		47,422		20,636
Units purchased		70		-	3,067		-	2,535		16,755		4,855		30,553
Units redeemed		(1	)	-	(280	)	-	(49,648	)	(24,395	)	(25,217	)	(3,767	)
Ending units		69		-	2,787		-	91,773		138,886		27,060		47,422

(Continued)

46

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	GVUG1					EIF				MSBF				NVRE1
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	(3,941	)	(4,206	)	11,666		12,360		81,141		52,284		1,537		-
Realized gain (loss) on investments		(22,295	)	13,695		(53,146	)	44,497		(94,596	)	(6,427	)	(1,677	)	-
Change in unrealized gain (loss) on investments		(513,347	)	140,753		(305,486	)	(124,443	)	(290,565	)	12,993		(29,044	)	-
Reinvested capital gains		152,707		-		10,754		44,501		28,486		73		-		-
Net increase (decrease) in contract owners’ equity resulting from operations		(386,876	)	150,242		(336,212	)	(23,085	)	(275,534	)	58,923		(29,184	)	-
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		40,871		20,966		61,635		60,106		51,062		63,723		770		-
Transfers between funds		19,206		18,772		(77,097	)	109,276		(199,231	)	207,016		91,431		-
Surrenders (note 6)		(51,424	)	(31,876	)	(46,663	)	(108,271	)	(197,346	)	(38,063	)	(308	)	-
Death benefits (note 4)		(3,251	)	-		(5,622	)	(52,967	)	(3,711	)	(71,510	)	-		-
Net policy repayments (loans) (note 5)		8,762		20,125		12,555		(10,008	)	(10,045	)	(5,525	)	(1,116	)	-
Deductions for surrender charges (note 2d)		-		-		-		-		(92	)	(245	)	-		-
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(35,299	)	(24,932	)	(46,019	)	(48,517	)	(59,783	)	(52,941	)	(1,444	)	-
Asset charges (note 3):
MSP contracts		(103	)	(116	)	(22	)	(21	)	(596	)	(803	)	(5	)	-
SL contracts or LSFP contracts		(1,022	)	(1,264	)	(660	)	(1,174	)	(397	)	(514	)	-		-
Adjustments to maintain reserves		(181	)	42		(142	)	5		(120	)	2		(20	)	-
Net equity transactions		(22,441	)	1,717		(102,035	)	(51,571	)	(420,259	)	101,140		89,308		-
Net change in contract owners’ equity		(409,317	)	151,959		(438,247	)	(74,656	)	(695,793	)	160,063		60,124		-
Contract owners’ equity beginning of period		925,944		773,985		950,461		1,025,117		1,628,221		1,468,158		-		-
Contract owners’ equity end of period	$	516,627		925,944		512,214		950,461		932,428		1,628,221		60,124		-
CHANGES IN UNITS:
Beginning units		49,430		50,634		55,240		58,134		108,912		102,380		-		-
Units purchased		6,451		14,803		5,020		18,982		8,711		36,901		11,239		-
Units redeemed		(8,691	)	(16,007	)	(12,804	)	(21,876	)	(42,366	)	(30,369	)	(556	)	-
Ending units		47,190		49,430		47,456		55,240		75,257		108,912		10,683		-

(Continued)

47

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	AMBP					AMTG				AMGP				AMINS
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	8,106		206		(87,788	)	(119,531	)	(205	)	(6,584	)	(1,570	)	5,289
Realized gain (loss) on investments		(2,637	)	19,145		812,672		1,433,027		61,132		140,736		(12,061	)	17,573
Change in unrealized gain (loss) on investments		(122,509	)	515		(8,858,322	)	2,424,218		(769,048	)	(6,334	)	(168,711	)	(42,678	)
Reinvested capital gains		-		-		-		-		57,134		-		50		27,077
Net increase (decrease) in contract owners’ equity resulting from operations		(117,040	)	19,866		(8,133,438	)	3,737,714		(650,987	)	127,818		(182,292	)	7,261
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		13,420		4,349		958,494		1,065,617		51,585		67,700		16,021		17,755
Transfers between funds		40,595		210,694		(455,531	)	(737,651	)	(63,928	)	(149,614	)	(66,121	)	179,999
Surrenders (note 6)		-		(10,182	)	(977,494	)	(1,100,321	)	(120,528	)	(137,786	)	(18,632	)	(41,955	)
Death benefits (note 4)		-		-		(124,393	)	(110,677	)	-		(915	)	(820	)	-
Net policy repayments (loans) (note 5)		(2,589	)	(875	)	25,020		(93,855	)	50,335		(19,180	)	(1,257	)	(15,412	)
Deductions for surrender charges (note 2d)		-		-		(429	)	(2,499	)	(2,140	)	(310	)	-		-
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(11,379	)	(4,377	)	(935,771	)	(967,453	)	(66,903	)	(70,162	)	(12,861	)	(14,131	)
Asset charges (note 3):
MSP contracts		-		-		(2,015	)	(3,093	)	(595	)	(807	)	(88	)	(248	)
SL contracts or LSFP contracts		-		-		(5,421	)	(8,676	)	(534	)	(1,092	)	(128	)	(419	)
Adjustments to maintain reserves		(72	)	15		311		(1,105	)	(179	)	241		(34	)	(7	)
Net equity transactions		39,975		199,624		(1,517,229	)	(1,959,713	)	(152,887	)	(311,925	)	(83,920	)	125,582
Net change in contract owners’ equity		(77,065	)	219,490		(9,650,667	)	1,778,001		(803,874	)	(184,107	)	(266,212	)	132,843
Contract owners’ equity beginning of period		260,325		40,835		19,416,102		17,638,101		1,850,061		2,034,168		457,502		324,659
Contract owners’ equity end of period	$	183,260		260,325		9,765,435		19,416,102		1,046,187		1,850,061		191,290		457,502
CHANGES IN UNITS:
Beginning units		16,200		2,232		612,678		700,290		123,678		145,720		30,956		22,564
Units purchased		4,056		14,956		57,487		75,423		9,375		23,780		2,552		14,938
Units redeemed		(1,007	)	(988	)	(127,605	)	(163,035	)	(21,069	)	(45,822	)	(9,219	)	(6,546	)
Ending units		19,249		16,200		542,560		612,678		111,984		123,678		24,289		30,956

(Continued)

48

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	AMMCGS					AMTP				AMRS				AMFAS
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	(2,904	)	(4,448	)	6,279		25,638		1,363		619		(480	)	(597	)
Realized gain (loss) on investments		(4,873	)	86,321		342,579		859,375		(21,799	)	(291	)	(3,067	)	1,696
Change in unrealized gain (loss) on investments		(290,281	)	57,288		(17,653,649	)	(1,353,429	)	(106,389	)	(9,805	)	(52,957	)	(2,811	)
Reinvested capital gains		-		-		3,525,524		2,788,543		478		11,358		4,125		757
Net increase (decrease) in contract owners’ equity resulting from operations		(298,058	)	139,161		(13,779,267	)	2,320,127		(126,347	)	1,881		(52,379	)	(955	)
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		22,394		24,807		1,136,221		1,450,430		6,530		8,866		3,778		4,581
Transfers between funds		(192,130	)	281,723		(852,825	)	(730,913	)	(11,356	)	118,806		41,721		12,957
Surrenders (note 6)		(38,516	)	(69,861	)	(1,391,602	)	(988,140	)	(1,473	)	(4,896	)	(5,790	)	(2,522	)
Death benefits (note 4)		-		-		(11,651	)	(161,926	)	-		-		-		-
Net policy repayments (loans) (note 5)		5,405		(18,683	)	80,628		(153,328	)	(811	)	(7,891	)	433		736
Deductions for surrender charges (note 2d)		-		-		(413	)	(1,200	)	-		-		-		-
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(26,807	)	(31,697	)	(1,066,822	)	(1,129,513	)	(7,895	)	(8,400	)	(7,357	)	(6,398	)
Asset charges (note 3):
MSP contracts		(75	)	(8	)	(10,364	)	(14,282	)	-		(2	)	-		-
SL contracts or LSFP contracts		(75	)	(14	)	(17,841	)	(27,676	)	(419	)	(526	)	(21	)	(23	)
Adjustments to maintain reserves		(135	)	2		(619	)	76		(96	)	6		(99	)	6
Net equity transactions		(229,939	)	186,269		(2,135,288	)	(1,756,472	)	(15,520	)	105,963		32,665		9,337
Net change in contract owners’ equity		(527,997	)	325,430		(15,914,555	)	563,655		(141,867	)	107,844		(19,714	)	8,382
Contract owners’ equity beginning of period		854,180		528,750		28,030,289		27,466,634		278,651		170,807		100,201		91,819
Contract owners’ equity end of period	$	326,183		854,180		12,115,734		28,030,289		136,784		278,651		80,487		100,201
CHANGES IN UNITS:
Beginning units		38,612		29,138		785,552		836,852		21,108		13,288		6,674		6,150
Units purchased		1,478		17,593		105,357		141,796		1,080		10,801		3,318		3,155
Units redeemed		(13,889	)	(8,119	)	(179,219	)	(193,096	)	(2,953	)	(2,981	)	(1,091	)	(2,631	)
Ending units		26,201		38,612		711,690		785,552		19,235		21,108		8,901		6,674

(Continued)

49

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	AMSRS					OVMS				OVGR				OVB
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	5,442		(2,117	)	235,502		260,773		(34,756	)	(42,282	)	383,601		524,909
Realized gain (loss) on investments		(8,400	)	36,060		(331,150	)	24,650		339,049		947,717		(206,549	)	74,104
Change in unrealized gain (loss) on investments		(191,453	)	(5,060	)	(5,786,944	)	(925,301	)	(4,853,585	)	489,293		(4,036,010	)	(188,237	)
Reinvested capital gains		25,299		1,612		713,901		1,074,036		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations		(169,112	)	30,495		(5,168,691	)	434,158		(4,549,292	)	1,394,728		(3,858,958	)	410,776
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		27,700		29,427		585,480		580,866		527,843		642,650		453,034		510,870
Transfers between funds		24,207		113,916		(303,726	)	(336,046	)	(326,922	)	(1,299,921	)	(460,068	)	(49,592	)
Surrenders (note 6)		(72,312	)	(99,111	)	(796,755	)	(1,052,336	)	(456,484	)	(813,615	)	(662,375	)	(911,939	)
Death benefits (note 4)		(10,994	)	-		(49,655	)	(196,189	)	(43,763	)	(51,775	)	(85,657	)	(39,203	)
Net policy repayments (loans) (note 5)		6,841		(25,983	)	62,444		(14,448	)	(30,451	)	(228	)	(17,023	)	(76,963	)
Deductions for surrender charges (note 2d)		-		-		-		(2,530	)	(661	)	(5,507	)	(276	)	(1,752	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(17,750	)	(15,500	)	(561,282	)	(573,966	)	(488,499	)	(505,197	)	(471,122	)	(456,084	)
Asset charges (note 3):
MSP contracts		(102	)	(111	)	(5,985	)	(8,257	)	(3,462	)	(4,398	)	(5,911	)	(6,943	)
SL contracts or LSFP contracts		(77	)	(226	)	(2,126	)	(3,765	)	(3,237	)	(6,000	)	(5,372	)	(6,684	)
Adjustments to maintain reserves		(147	)	8		(449	)	72		(243	)	(12	)	(799	)	(91	)
Net equity transactions		(42,634	)	2,420		(1,072,054	)	(1,606,599	)	(825,879	)	(2,044,003	)	(1,255,569	)	(1,038,381	)
Net change in contract owners’ equity		(211,746	)	32,915		(6,240,745	)	(1,172,441	)	(5,375,171	)	(649,275	)	(5,114,527	)	(627,605	)
Contract owners’ equity beginning of period		463,192		430,277		12,562,680		13,735,121		10,509,992		11,159,267		10,823,633		11,451,238
Contract owners’ equity end of period	$	251,446		463,192		6,321,935		12,562,680		5,134,821		10,509,992		5,709,106		10,823,633
CHANGES IN UNITS:
Beginning units		25,882		25,806		421,302		478,632		559,388		672,526		435,076		477,286
Units purchased		4,589		12,372		33,220		64,101		95,331		91,175		25,534		72,782
Units redeemed		(7,146	)	(12,296	)	(79,376	)	(121,431	)	(150,595	)	(204,313	)	(79,697	)	(114,992	)
Ending units		23,325		25,882		375,146		421,302		504,124		559,388		380,913		435,076

(Continued)

50

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	OVGS3					OVGS				OVHI3				OVHI
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	64,062		53,022		254,770		270,026		5,736		(302	)	23,417		41,814
Realized gain (loss) on investments		(38,743	)	184,557		890,878		2,612,574		(16,997	)	(80	)	(39,633	)	(6,938	)
Change in unrealized gain (loss) on investments		(3,833,736	)	(204,740	)	(14,677,210	)	(2,586,681	)	(111,625	)	(3,193	)	(253,539	)	(38,746	)
Reinvested capital gains		440,445		359,391		1,699,138		1,725,651		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations		(3,367,972	)	392,230		(11,832,424	)	2,021,570		(122,886	)	(3,575	)	(269,755	)	(3,870	)
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		1,117,869		1,369,384		(3,495	)	640		18,810		17,626		3,411		12,695
Transfers between funds		(233,099	)	413,420		(1,518,166	)	(1,846,255	)	61,315		90,873		(79,716	)	(191,521	)
Surrenders (note 6)		(619,788	)	(752,642	)	(1,474,058	)	(2,146,176	)	(2,916	)	(1,596	)	(6,946	)	(14,172	)
Death benefits (note 4)		(37,387	)	(41,749	)	(166,282	)	(218,520	)	-		-		-		-
Net policy repayments (loans) (note 5)		408,024		386,022		(383,499	)	(467,073	)	433		1,312		(8,296	)	(1,099	)
Deductions for surrender charges (note 2d)		(170	)	(426	)	(422	)	(2,237	)	-		-		-		(87	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(400,832	)	(371,984	)	(926,388	)	(1,051,117	)	(6,048	)	(1,755	)	(13,684	)	(22,982	)
Asset charges (note 3):
MSP contracts		(1,695	)	(2,706	)	(10,538	)	(14,632	)	(71	)	-		(299	)	(648	)
SL contracts or LSFP contracts		(1,752	)	(2,911	)	(5,433	)	(10,982	)	-		-		(357	)	(457	)
Adjustments to maintain reserves		(171	)	17		(839	)	207		(296	)	33		(107	)	49
Net equity transactions		230,999		996,425		(4,489,120	)	(5,756,145	)	71,227		106,493		(105,994	)	(218,222	)
Net change in contract owners’ equity		(3,136,973	)	1,388,655		(16,321,544	)	(3,734,575	)	(51,659	)	102,918		(375,749	)	(222,092	)
Contract owners’ equity beginning of period		8,131,139		6,742,484		32,119,180		35,853,755		102,918		-		442,133		664,225
Contract owners’ equity end of period	$	4,994,166		8,131,139		15,797,636		32,119,180		51,259		102,918		66,384		442,133
CHANGES IN UNITS:
Beginning units		546,620		479,820		777,386		902,632		10,694		-		33,128		49,608
Units purchased		159,895		235,329		17,662		112,831		17,267		10,961		314		2,774
Units redeemed		(142,314	)	(168,529	)	(145,430	)	(238,077	)	(2,604	)	(267	)	(10,075	)	(19,254	)
Ending units		564,201		546,620		649,618		777,386		25,357		10,694		23,367		33,128

(Continued)

51

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	OVSC					OVGI				OVAG				PVGIB
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	772		(3,165	)	16,796		11,022		(5,819	)	(9,076	)	1,642		810
Realized gain (loss) on investments		(55,522	)	8,054		(1,864	)	178,260		(2,162	)	116,295		(26,388	)	(91	)
Change in unrealized gain (loss) on investments		(354,138	)	(76,840	)	(829,089	)	(99,839	)	(590,571	)	(10,721	)	(28,723	)	(25,028	)
Reinvested capital gains		52,671		45,630		103,443		-		-		-		18,045		17,302
Net increase (decrease) in contract owners’ equity resulting from operations		(356,217	)	(26,321	)	(710,714	)	89,443		(598,552	)	96,498		(35,424	)	(7,007	)
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		40,918		63,584		79,428		99,392		85,976		102,708		4,129		4,826
Transfers between funds		(273,881	)	131,907		(94,002	)	(220,379	)	(49,406	)	(301,045	)	(21,155	)	2,777
Surrenders (note 6)		(41,348	)	(37,735	)	(74,574	)	(210,786	)	(81,439	)	(59,970	)	-		(1,062	)
Death benefits (note 4)		(16,422	)	-		-		(55,034	)	(557	)	(20,699	)	-		-
Net policy repayments (loans) (note 5)		(1,134	)	(23,689	)	610		(58,836	)	49,526		(30,598	)	(2,046	)	(2,759	)
Deductions for surrender charges (note 2d)		-		-		(351	)	(239	)	(249	)	(88	)	-		-
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(38,810	)	(46,893	)	(75,959	)	(83,795	)	(80,252	)	(85,091	)	(5,017	)	(6,397	)
Asset charges (note 3):
MSP contracts		(69	)	(221	)	(1,996	)	(2,795	)	(269	)	(602	)	-		-
SL contracts or LSFP contracts		(350	)	(707	)	(614	)	(1,177	)	(130	)	(270	)	-		(1	)
Adjustments to maintain reserves		(146	)	(52	)	(133	)	34		(79	)	5		(76	)	11
Net equity transactions		(331,242	)	86,194		(167,591	)	(533,615	)	(76,879	)	(395,650	)	(24,165	)	(2,605	)
Net change in contract owners’ equity		(687,459	)	59,873		(878,305	)	(444,172	)	(675,431	)	(299,152	)	(59,589	)	(9,612	)
Contract owners’ equity beginning of period		1,192,901		1,133,028		1,961,773		2,405,945		1,279,707		1,578,859		106,226		115,838
Contract owners’ equity end of period	$	505,442		1,192,901		1,083,468		1,961,773		604,276		1,279,707		46,637		106,226
CHANGES IN UNITS:
Beginning units		59,084		55,332		174,176		222,728		187,576		245,818		6,898		7,034
Units purchased		5,322		18,569		16,494		27,285		29,164		33,623		424		1,122
Units redeemed		(23,984	)	(14,817	)	(33,681	)	(75,837	)	(41,787	)	(91,865	)	(2,345	)	(1,258	)
Ending units		40,422		59,084		156,989		174,176		174,953		187,576		4,977		6,898

(Continued)

52

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	PVTIGB					PVTVB				TRBCG2				TREI2
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	5,833		9,735		(167	)	(267	)	(3,079	)	(1,850	)	22,229		14,679
Realized gain (loss) on investments		(15,704	)	20,299		(2,398	)	3,423		(62,852	)	62,166		(113,773	)	56,339
Change in unrealized gain (loss) on investments		(253,636	)	(53,099	)	(22,668	)	917		(314,438	)	(20,940	)	(538,011	)	(144,478	)
Reinvested capital gains		60,435		54,130		-		-		-		-		42,804		90,216
Net increase (decrease) in contract owners’ equity resulting from operations		(203,072	)	31,065		(25,233	)	4,073		(380,369	)	39,376		(586,751	)	16,756
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		20,815		20,459		3,155		2,398		38,009		30,729		66,890		79,115
Transfers between funds		(28,434	)	129,508		(4,440	)	(9,237	)	256,809		314,976		149,358		270,046
Surrenders (note 6)		(44,085	)	(19,739	)	(6,818	)	(882	)	(19,950	)	(35,013	)	(116,663	)	(40,851	)
Death benefits (note 4)		-		(4,534	)	-		-		-		-		(10,860	)	-
Net policy repayments (loans) (note 5)		8,290		(4,912	)	-		881		(12,084	)	(20,696	)	(16,082	)	(42,121	)
Deductions for surrender charges (note 2d)		-		-		-		-		-		-		-		-
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(16,970	)	(17,929	)	(4,541	)	(4,277	)	(25,118	)	(15,562	)	(62,595	)	(56,704	)
Asset charges (note 3):
MSP contracts		-		(1	)	(133	)	(213	)	(280	)	(429	)	(68	)	(207	)
SL contracts or LSFP contracts		(63	)	(157	)	(47	)	(76	)	(62	)	-		(362	)	(669	)
Adjustments to maintain reserves		(91	)	(51	)	(104	)	(5	)	(144	)	32		(100	)	11
Net equity transactions		(60,538	)	102,644		(12,928	)	(11,411	)	237,180		274,037		9,518		208,620
Net change in contract owners’ equity		(263,610	)	133,709		(38,161	)	(7,338	)	(143,189	)	313,413		(577,233	)	225,376
Contract owners’ equity beginning of period		504,169		370,460		73,625		80,963		669,703		356,290		1,514,692		1,289,316
Contract owners’ equity end of period	$	240,559		504,169		35,464		73,625		526,514		669,703		937,459		1,514,692
CHANGES IN UNITS:
Beginning units		22,396		17,808		5,100		5,916		48,770		29,062		118,142		103,122
Units purchased		2,669		10,147		515		357		24,943		30,196		25,941		35,155
Units redeemed		(5,904	)	(5,559	)	(1,714	)	(1,173	)	(6,555	)	(10,488	)	(28,793	)	(20,135	)
Ending units		19,161		22,396		3,901		5,100		67,158		48,770		115,290		118,142

(Continued)

53

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	TRLT2					DSRG				VWBF				VWEM
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	34,081		7,912		10,935		(10,435	)	273,928		148,549		(44,508	)	(16,974	)
Realized gain (loss) on investments		(6,980	)	2,139		(405,373	)	(283,858	)	(117,440	)	(62,582	)	(766,696	)	1,638,688
Change in unrealized gain (loss) on investments		(40,878	)	2,506		(2,397,159	)	885,971		(95,471	)	154,431		(11,625,758	)	82,871
Reinvested capital gains		-		-		-		-		-		-		4,614,460		2,156,585
Net increase (decrease) in contract owners’ equity resulting from operations		(13,777	)	12,557		(2,791,597	)	591,678		61,017		240,398		(7,822,502	)	3,861,170
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		173,789		2,271		658,519		749,177		108,224		149,050		384,120		406,654
Transfers between funds		997,833		327,843		(304,418	)	(310,224	)	207,377		300,154		(1,656,316	)	(351,722	)
Surrenders (note 6)		(666	)	-		(471,697	)	(592,352	)	(188,823	)	(135,076	)	(612,874	)	(539,830	)
Death benefits (note 4)		-		-		(44,400	)	(43,342	)	(19,682	)	(24,930	)	(14,697	)	(34,771	)
Net policy repayments (loans) (note 5)		(961	)	1,772		35,947		(18,488	)	(67,490	)	(8,828	)	(182,129	)	(109,248	)
Deductions for surrender charges (note 2d)		-		-		(891	)	(1,368	)	-		(332	)	(3,545	)	(741	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(51,840	)	(9,448	)	(540,537	)	(542,630	)	(154,769	)	(122,647	)	(330,611	)	(375,189	)
Asset charges (note 3):
MSP contracts		(115	)	(102	)	(1,692	)	(2,229	)	(1,904	)	(1,432	)	(3,464	)	(5,985	)
SL contracts or LSFP contracts		(144	)	(17	)	(1,493	)	(2,817	)	(297	)	(381	)	(4,557	)	(9,420	)
Adjustments to maintain reserves		(170	)	59		(319	)	(26	)	(354	)	38		(488	)	279
Net equity transactions		1,117,726		322,378		(670,981	)	(764,299	)	(117,718	)	155,616		(2,424,561	)	(1,019,973	)
Net change in contract owners’ equity		1,103,949		334,935		(3,462,578	)	(172,621	)	(56,701	)	396,014		(10,247,063	)	2,841,197
Contract owners’ equity beginning of period		396,947		62,012		8,484,461		8,657,082		3,240,485		2,844,471		14,126,495		11,285,298
Contract owners’ equity end of period	$	1,500,896		396,947		5,021,883		8,484,461		3,183,784		3,240,485		3,879,432		14,126,495
CHANGES IN UNITS:
Beginning units		36,256		5,960		330,514		362,908		152,430		144,434		462,678		508,528
Units purchased		105,304		34,604		44,565		84,968		24,032		38,401		27,773		102,968
Units redeemed		(5,481	)	(4,308	)	(74,878	)	(117,362	)	(34,489	)	(30,405	)	(127,722	)	(148,818	)
Ending units		136,079		36,256		300,201		330,514		141,973		152,430		362,729		462,678

(Continued)

54

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	VWHA					MSVFI				MSEM				MSVRE
	2008			2007		2008		2007		2008		2007		2008		2007
Investment activity:
Net investment income (loss)	$	(47,448	)	(64,105	)	34,882		10,008		131,296		172,810		403,514		115,313
Realized gain (loss) on investments		878,227		1,703,160		(24,673	)	2,549		(96,663	)	(41,585	)	(445,707	)	3,939,107
Change in unrealized gain (loss) on investments		(10,427,706	)	1,644,501		(115,402	)	8,225		(431,832	)	(66,085	)	(10,735,669	)	(9,669,937	)
Reinvested capital gains		2,230,752		1,473,529		-		-		81,645		78,893		5,230,541		1,981,393
Net increase (decrease) in contract owners’ equity resulting from operations		(7,366,175	)	4,757,085		(105,193	)	20,782		(315,554	)	144,033		(5,547,321	)	(3,634,124	)
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		406,903		375,964		18,351		12,085		77,658		79,438		548,744		747,226
Transfers between funds		421,092		857,604		334,225		250,442		(335,762	)	(167,106	)	(532,408	)	(5,815,128	)
Surrenders (note 6)		(884,774	)	(742,511	)	(9,769	)	(32,927	)	(71,152	)	(66,100	)	(1,196,916	)	(1,087,998	)
Death benefits (note 4)		(124,529	)	(9,881	)	-		-		(6,683	)	(10,830	)	(179,983	)	(45,939	)
Net policy repayments (loans) (note 5)		(337,743	)	(175,768	)	138		(11,075	)	(24,285	)	(14,311	)	(52,719	)	(145,577	)
Deductions for surrender charges (note 2d)		-		(389	)	-		-		-		-		(1	)	(2,184	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(494,629	)	(411,823	)	(36,611	)	(18,481	)	(90,648	)	(87,068	)	(609,613	)	(793,076	)
Asset charges (note 3):
MSP contracts		(7,192	)	(8,046	)	(96	)	(97	)	(1,082	)	(881	)	(5,534	)	(9,033	)
SL contracts or LSFP contracts		(2,137	)	(3,194	)	(151	)	(74	)	(940	)	(3,737	)	(5,401	)	(10,311	)
Adjustments to maintain reserves		(6,828	)	1,154		(127	)	28		(288	)	9		(695	)	(241	)
Net equity transactions		(1,029,837	)	(116,890	)	305,960		199,901		(453,182	)	(270,586	)	(2,034,526	)	(7,162,261	)
Net change in contract owners’ equity		(8,396,012	)	4,640,195		200,767		220,683		(768,736	)	(126,553	)	(7,581,847	)	(10,796,385	)
Contract owners’ equity beginning of period		15,750,627		11,110,432		562,443		341,760		2,355,333		2,481,886		16,072,157		26,868,542
Contract owners’ equity end of period	$	7,354,615		15,750,627		763,210		562,443		1,586,597		2,355,333		8,490,310		16,072,157
CHANGES IN UNITS:
Beginning units		305,020		304,462		47,388		30,284		109,086		120,794		335,358		473,108
Units purchased		24,911		58,662		35,400		26,797		7,258		30,254		39,572		37,574
Units redeemed		(64,565	)	(58,104	)	(11,088	)	(9,693	)	(29,901	)	(41,962	)	(84,708	)	(175,324	)
Ending units		265,366		305,020		71,700		47,388		86,443		109,086		290,222		335,358

(Continued)

55

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2008 and 2007

	SVDF					SVOF
	2008			2007		2008		2007
Investment activity:
Net investment income (loss)	$	(40,919	)	(51,938	)	338,413		573
Realized gain (loss) on investments		302,092		646,495		(1,054,048	)	93,211
Change in unrealized gain (loss) on investments		(4,172,398	)	1,097,061		(16,836,194	)	(2,882,045	)
Reinvested capital gains		-		-		5,761,705		4,826,981
Net increase (decrease) in contract owners’ equity resulting from operations		(3,911,225	)	1,691,618		(11,790,124	)	2,038,720
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		292,856		326,377		1,207,952		1,400,462
Transfers between funds		23,032		(247,675	)	(968,586	)	(1,163,843	)
Surrenders (note 6)		(316,597	)	(573,020	)	(1,782,655	)	(2,863,802	)
Death benefits (note 4)		(12,879	)	(3,839	)	(124,210	)	(232,086	)
Net policy repayments (loans) (note 5)		(94,283	)	(28,890	)	(199,686	)	3,830
Deductions for surrender charges (note 2d)		(62	)	(354	)	(562	)	(2,618	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(315,059	)	(316,893	)	(1,324,857	)	(1,383,823	)
Asset charges (note 3):
MSP contracts		(2,051	)	(2,827	)	(6,041	)	(8,032	)
SL contracts or LSFP contracts		(362	)	(633	)	(3,544	)	(7,683	)
Adjustments to maintain reserves		(499	)	191		(1,430	)	11,453
Net equity transactions		(425,904	)	(847,563	)	(3,203,619	)	(4,246,142	)
Net change in contract owners’ equity		(4,337,129	)	844,055		(14,993,743	)	(2,207,422	)
Contract owners’ equity beginning of period		9,021,421		8,177,366		31,575,576		33,782,998
Contract owners’ equity end of period	$	4,684,292		9,021,421		16,581,833		31,575,576
CHANGES IN UNITS:
Beginning units		219,312		240,618		660,648		746,196
Units purchased		16,840		31,233		34,331		87,677
Units redeemed		(31,369	)	(52,539	)	(106,899	)	(173,225	)
Ending units		204,783		219,312		588,080		660,648

See accompanying notes to financial statements.

56

NATIONWIDE VLI SEPARATE ACCOUNT-2

NOTES TO FINANCIAL STATEMENTS

December 31, 2008 and 2007

(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 and certain other fees, were offered for purchase. Beginning December 31, 1990, contracts with a front-end 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.

With certain exceptions, contract owners may invest in the following:

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

AIM VIF - Basic Value Fund - Series I (AVBVI)

AIM VIF - Capital Appreciation Fund - Series I (AVCA)

AIM VIF - Capital Development Fund-Series I (AVCDI)

Portfolios of the AllianceBernstein Variable Products Series Fund, Inc. (AllianceBernstein VPS);

AllianceBernstein VPS - Growth and Income Portfolio - Class A (ALVGIA)

AllianceBernstein VPS - Small-Mid Cap Value Portfolio - Class A (ALVSVA)

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

American Century VP - Balanced Fund - Class I (ACVB)

American Century VP - Capital Appreciation Fund - Class I (ACVCA)

American Century VP - Income & Growth Fund - Class I (ACVIG)

American Century VP - Inflation Protection Fund - Class II (ACVIP2)

American Century VP - International Fund - Class I (ACVI)

American Century VP - International Fund - Class III (ACVI3)

American Century VP - Mid Cap Value Fund - Class I (ACVMV1)

American Century VP - Ultra(R) Fund - Class I (ACVU1)

American Century VP - Value Fund - Class I (ACVV)

American Century VP - Vista(SM) Fund - Class I (ACVVS1)

Portfolios of the Credit Suisse Trust;

Credit Suisse Trust - Global Small Cap Portfolio (WVCP)

Credit Suisse Trust - International Focus Portfolio (WIEP)

Credit Suisse Trust - Small Cap Core I Portfolio (WSCP)

Portfolios of the Dreyfus Investment Portfolios (Dreyfus IP);

Dreyfus IP - European Equity Portfolio (DVEE)*

Dreyfus IP - Small Cap Stock Index Portfolio - Service Class (DVSCS)

Dreyfus Stock Index Fund, Inc. - Initial Class (DSIF)

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

Dreyfus VIF - Appreciation Portfolio - Initial Class (DCAP)

Dreyfus VIF - Developing Leaders Portfolio - Initial Class (DSC)

Dreyfus VIF - Growth and Income Portfolio - Initial Class (DGI)

Portfolios of the Federated Insurance Series (Federated IS);

Federated IS - American Leaders Fund II - Primary Class (FALF)

Federated IS - Capital Appreciation Fund II - Primary Class (FVCA2P)

Federated IS - Market Opportunity Fund II - Service Class (FVMOS)

Federated IS - Quality Bond Fund II - Primary Class (FQB)

Portfolios of the Fidelity(R) Variable Insurance Products Fund (Fidelity(R) VIP);

Fidelity(R) VIP - Equity-Income Portfolio - Initial Class (FEIP)

Fidelity(R) VIP - Growth Portfolio - Initial Class (FGP)

Fidelity(R) VIP - High Income Portfolio - Initial Class (FHIP)

Fidelity(R) VIP - High Income Portfolio - Initial Class R (FHIPR)

Fidelity(R) VIP - Overseas Portfolio - Initial Class (FOP)

Fidelity(R) VIP - Overseas Portfolio - Service Class R (FOSR)

Portfolios of the Fidelity(R) Variable Insurance Products Fund II (Fidelity(R) VIP II);

(Continued)

57

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

Fidelity(R) VIP II - Asset Manager Portfolio - Initial Class (FAMP)

Fidelity(R) VIP II - Contrafund(R) Portfolio - Initial Class (FCP)

Fidelity(R) VIP II - Investment Grade Bond Portfolio - Service Class (FIGBS)

Portfolios of the Fidelity(R) Variable Insurance Products Fund III (Fidelity(R) VIP III);

Fidelity(R) VIP III - Growth Opportunities Portfolio - Initial Class (FGOP)

Fidelity(R) VIP III - Mid Cap Portfolio - Service Class (FMCS)

Fidelity(R) VIP III - Value Strategies Portfolio - Service Class (FVSS)

Portfolios of the Fidelity(R) Variable Insurance Products Fund IV (Fidelity(R) VIP IV);

Fidelity(R) VIP IV - Energy Portfolio - Service Class 2 (FNRS2)

Fidelity(R) VIP IV - Freedom Fund 2010 Portfolio - Service Class (FF10S)

Fidelity(R) VIP IV - Freedom Fund 2020 Portfolio - Service Class (FF20S)

Fidelity(R) VIP IV - Freedom Fund 2030 Portfolio - Service Class (FF30S)

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

Franklin Templeton VIP - Developing Markets Securities Fund - Class 3 (FTVDM3)

Franklin Templeton VIP - Foreign Securities Fund - Class 1 (TIF)

Franklin Templeton VIP - Foreign Securities Fund - Class 3 (TIF3)

Franklin Templeton VIP - Founding Funds Allocation Fund - Class 2 (FTVFA2)

Franklin Templeton VIP - Global Income Securities Fund - Class 3 (FTVGI3)

Franklin Templeton VIP - Income Securities Fund - Class 2 (FTVIS2)

Franklin Templeton VIP - Rising Dividends Securities Fund - Class 1 (FTVRDI)

Franklin Templeton VIP - Small Cap Value Securities Fund - Class 1 (FTVSVI)

Portfolios of the Janus Aspen Series;

Janus Aspen Series - Balanced Portfolio - Service Class (JABS)

Janus Aspen Series - Forty Portfolio - Service Class (JACAS)

Janus Aspen Series - Global Technology Portfolio - Service Class (JAGTS)

Janus Aspen Series - INTECH Risk Managed Core Portfolio - Service Class (JARLCS)

Janus Aspen Series - International Growth Portfolio - Service Class (JAIGS)

Janus Aspen Series - International Growth Portfolio - Service II Class (JAIGS2)

Portfolios of the Lehman Brothers Advisers Management Trust (Lehman Brothers AMT);

Lehman Brothers AMT - Short Duration Bond Portfolio - I Class (AMTB)

Portfolios of the MFS(R) Variable Insurance Trust (MFS(R) VIT);

MFS(R) VIT - Investors Growth Stock Series - Initial Class (MIGIC)

MFS(R) VIT - Value Series - Initial Class (MVFIC)

Portfolios of the Nationwide Variable Insurance Trust (Nationwide VIT);

Nationwide VIT - American Funds Asset Allocation Fund - Class II (GVAAA2)

Nationwide VIT - American Funds Bond Fund - Class II (GVABD2)

Nationwide VIT - American Funds Global Growth Fund - Class II (GVAGG2)

Nationwide VIT - American Funds Growth Fund - Class II (GVAGR2)

Nationwide VIT - American Funds Growth-Income Fund - Class II (GVAGI2)

Nationwide VIT - Cardinal Aggressive Fund - Class I (NVCRA1)

Nationwide VIT - Cardinal Balanced Fund - Class I (NVCRB1)

Nationwide VIT - Cardinal Capital Appreciation Fund - Class I (NVCCA1)

Nationwide VIT - Cardinal Conservative Fund - Class I (NVCCN1)

Nationwide VIT - Cardinal Moderate Fund - Class I (NVCMD1)

Nationwide VIT - Cardinal Moderately Aggressive Fund - Class I (NVCMA1)

Nationwide VIT - Cardinal Moderately Conservative Fund - Class I (NVCMC1)

Nationwide VIT - Core Bond Fund - Class I (NVCBD1)

Nationwide VIT - Federated High Income Bond Fund - Class I (HIBF)

Nationwide VIT - Federated High Income Bond Fund - Class III (HIBF3)

Nationwide VIT - Gartmore Emerging Markets Fund - Class I (GEM)

Nationwide VIT - Gartmore Emerging Markets Fund - Class III (GEM3)

Nationwide VIT - Gartmore Global Utilities Fund - Class I (GVGU1)

Nationwide VIT - Gartmore International Equity Fund - Class I (GIG) (formerly Gartmore International Growth Fund - Class I)

Nationwide VIT - Gartmore International Equity Fund - Class III (GIG3) (formerly Gartmore International Growth Fund - Class III)

Nationwide VIT - Global Financial Services Fund - Class I (GVGF1)

Nationwide VIT - Government Bond Fund - Class I (GBF)

Nationwide VIT - Growth Fund - Class I (CAF)

Nationwide VIT - Health Sciences Fund - Class I (GVGH1) (formerly Global Health Sciences Fund - Class I)

Nationwide VIT - Health Sciences Fund - Class III (GVGHS) (formerly Global Health Sciences Fund - Class III)

Nationwide VIT - International Index Fund - Class VI (GVIX6)

Nationwide VIT - Investor Destinations Aggressive Fund - Class II (GVIDA)

(Continued)

58

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

Nationwide VIT - Investor Destinations Conservative Fund - Class II (GVIDC)

Nationwide VIT - Investor Destinations Moderate Fund - Class II (GVIDM)

Nationwide VIT - Investor Destinations Moderately Aggressive Fund - Class II (GVDMA)

Nationwide VIT - Investor Destinations Moderately Conservative Fund - Class II (GVDMC)

Nationwide VIT - Lehman Brothers Core Plus Bond Fund - Class I (NVLCP1)

Nationwide VIT - Mid Cap Growth Fund - Class I (SGRF)

Nationwide VIT - Mid Cap Index Fund - Class I (MCIF)

Nationwide VIT - Money Market Fund - Class I (SAM)

Nationwide VIT - Multi-Manager International Growth Fund - Class III (NVMIG3)

Nationwide VIT - Multi-Manager International Value Fund - Class I (GVDIVI) (formerly International Value Fund - Class I)

Nationwide VIT - Multi-Manager International Value Fund - Class III (GVDIV3) (formerly International Value Fund - Class III)

Nationwide VIT - Multi-Manager Large Cap Growth Fund - Class I (NVMLG1)

Nationwide VIT - Multi-Manager Large Cap Value Fund - Class I (NVMLV1)

Nationwide VIT - Multi-Manager Mid Cap Growth Fund - Class I (NVMMG1)

Nationwide VIT - Multi-Manager Mid Cap Value Fund - Class II (NVMMV2)*

Nationwide VIT - Multi-Manager Small Cap Growth Fund - Class I (SCGF)

Nationwide VIT - Multi-Manager Small Cap Value Fund - Class I (SCVF)

Nationwide VIT - Multi-Manager Small Company Fund - Class I (SCF)

Nationwide VIT - Nationwide Fund - Class I (TRF)

Nationwide VIT - Nationwide Leaders Fund - Class I (GVUS1)

Nationwide VIT - Neuberger Berman Multi-Cap Opportunities Fund - Class I (NVNMO1)

Nationwide VIT - Neuberger Berman Socially Responsible Fund - Class I (NVNSR1)

Nationwide VIT - Neuberger Berman Socially Responsible Fund - Class II (NVNSR2)*

Nationwide VIT - Short Term Bond Fund - Class II (NVSTB2)

Nationwide VIT - Technology and Communications Fund - Class I (GGTC) (formerly Global Technology and Communications Fund - Class I)

Nationwide VIT - Technology and Communications Fund - Class III (GGTC3) (formerly Global Technology and Communications Fund - Class III)

Nationwide VIT - U.S. Growth Leaders Fund - Class I (GVUG1)

Nationwide VIT - Van Kampen Comstock Value Fund - Class I (EIF)

Nationwide VIT - Van Kampen Multi-Sector Bond Fund - Class I (MSBF)

Nationwide VIT - Van Kampen Real Estate Fund - Class I (NVRE1)

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

Neuberger Berman AMT - Balanced Portfolio - Class I (AMBP)

Neuberger Berman AMT - Growth Portfolio - Class I (AMTG)

Neuberger Berman AMT - Guardian Portfolio - Class I (AMGP)

Neuberger Berman AMT - International Portfolio - Class S (AMINS)

Neuberger Berman AMT - Mid Cap Growth Portfolio - Class S (AMMCGS)

Neuberger Berman AMT - Partners Portfolio - Class I (AMTP)

Neuberger Berman AMT - Regency Portfolio - Class S (AMRS)

Neuberger Berman AMT - Small Cap Growth Portfolio - Class S (AMFAS) (formerly Fasciano Portfolio – Class S)

Neuberger Berman AMT - Socially Responsive Portfolio - Class I (AMSRS)

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

Oppenheimer VAF - Balanced Fund - Non-Service Class (OVMS)

Oppenheimer VAF - Capital Appreciation Fund - Non-Service Class (OVGR)

Oppenheimer VAF - Core Bond Fund - Non-Service Class (OVB)

Oppenheimer VAF - Global Securities Fund - Class 3 (OVGS3)

Oppenheimer VAF - Global Securities Fund - Non-Service Class (OVGS)

Oppenheimer VAF - High Income Fund - Class 3 (OVHI3)

Oppenheimer VAF - High Income Fund - Non-Service Class (OVHI)

Oppenheimer VAF - Main Street Small Cap Fund(R) - Non-Service Class (OVSC)

Oppenheimer VAF - Main Street(R) - Non-Service Class (OVGI)

Oppenheimer VAF - Mid Cap Fund - Non-Service Class (OVAG)

Portfolios of the Putnam Variable Trust (Putnam VT);

Putnam VT - Growth and Income Fund - Class IB (PVGIB)

Putnam VT - International Equity Fund - Class IB (PVTIGB)

Putnam VT - Voyager Fund - Class IB (PVTVB)

Strong Variable Insurance Funds, Inc. - Strong International Stock Fund II (SVIF)*

Portfolios of T. Rowe Price;

T. Rowe Price Blue Chip Growth Portfolio - II (TRBCG2)

T. Rowe Price Equity Income Portfolio - II (TREI2)

T. Rowe Price Limited Term Bond Portfolio - Class II (TRLT2)

(Continued)

59

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

The Dreyfus Socially Responsible Growth Fund, Inc. - Initial Shares (DSRG)

Turner GVIT Growth Focus Fund - Class I (TGF)*

Portfolios of the Van Eck Worldwide Insurance Trust;

Van Eck Worldwide Insurance Trust - Bond Fund - Initial Class (VWBF)

Van Eck Worldwide Insurance Trust - Emerging Markets Fund - Initial Class (VWEM)

Van Eck Worldwide Insurance Trust - Hard Assets Fund - Initial Class (VWHA)

Portfolios of the Van Kampen Life Investment Trust (Van Kampen LIT);

Van Kampen LIT - Morgan Stanley Real Estate Securities Fund (ACRE)*

Portfolios of the Van Kampen - The Universal Institutional Funds, Inc. (Van Kampen UIF);

Van Kampen UIF - Core Plus Fixed Income Portfolio - Class I (MSVFI)

Van Kampen UIF - Emerging Markets Debt Portfolio - Class I (MSEM)

Van Kampen UIF - U.S. Real Estate Portfolio - Class I (MSVRE)

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

Wells Fargo AVT - Discovery Fund(SM) (SVDF)

Wells Fargo AVT - Opportunity Fund(SM) (SVOF)

* At December 31, 2008, contract owners were not invested in this fund.

The contract owners’ equity is affected by the investment results of each fund, equity transactions by contract owners and certain policy and assets charges (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.

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

(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, 2008 of such funds, which value their investment securities at fair value. The cost of investments sold is determined on a first in – first out basis. Investment transactions are accounted for on the trade date (date the order to buy or sell is executed), and dividends and 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 generally 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) Recently Issued Accounting Standard

In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements (SFAS 157). SFAS 157 provides enhanced guidance for using fair value to measure assets and liabilities and requires new disclosures about fair value measurements.

(Continued)

60

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

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. For assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to initial recognition, the reporting entity shall disclose information that enables financial statement users to assess the inputs used to develop those measurements. 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, and interim periods within those fiscal years, with early adoption permitted. The Company adopted SFAS 157 effective January 1, 2008. The adoption of SFAS 157 did not have a material impact on the Account’s financial position or results of operations.

(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, 2008 and 2007, total front-end sales charge deductions were $2,621,205 and $3,025,837, respectively and were recognized as a reduction of purchase payments on the Statement of Changes in Contract Owners’ Equity.

(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 totaling less than $25,000 – $10/month

Purchase payments totaling $25,000 or more – none

Contracts issued on or after April 16, 1990:

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

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

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

(Continued)

61

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

(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.

The charges above are assessed against each contract by liquidating units.

(3) Asset Charges

The Company deducts a charge related to the assumption of mortality and expense risk.

For modified single premium contracts (MSP), the Company deducts a charge equal to an annualized rate of 0.90%. For flexible premium contracts and last survivor flexible premium contracts (LSFP), the Company deducts a charge equal to an annualized rate of 0.80% in policy years one through ten. In policy years eleven and after, the charge will continue to be deducted, but may be reduced for policies at specified asset levels. This charge is assessed monthly by liquidating units.

For single premium contracts issued prior to April 16, 1990, the Company deducts a charge 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. For multiple payment contracts, the Company deducts a charge equal to an annualized rate of 0.80%. For flexible premium and Variable Executive Life contracts, the charge is equal to an annualized rate of 0.80% during the first ten policy years, and 0.50% thereafter. This charge is assessed through a reduction in the unit value.

The following table provides mortality and expense risk charges by contract type for those charges that are assessed through a reduction in the unit value for the period ended December 31, 2008:

	TOTAL		AVBVI	AVCA	AVCDI	ALVGIA
Flexible Premium VUL contracts	$	3,907,130	2,374	762	1,714	2,835
Multiple Payment contracts		2,776	-	-	-	-
Single Premium contracts issued on or after April 16, 1990		614,936	-	-	-	-
Single Premium contracts issued prior to April 16, 1990		4,429	-	-	-	-
Variable Executive Life contracts		14,529	1	-	-	-
Total	$	4,543,800	2,375	762	1,714	2,835

(Continued)

62

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

	ALVSVA		ACVB	ACVCA	ACVIG	ACVIP2
Flexible Premium VUL contracts	$	4,089	20,977	78,951	11,037	6,594
Multiple Payment contracts		-	-	195	-	-
Single Premium contracts issued on or after April 16, 1990		-	4,559	16,153	1,024	-
Single Premium contracts issued prior to April 16, 1990		-	-	122	-	-
Variable Executive Life contracts		-	-	238	74	291
Total	$	4,089	25,536	95,659	12,135	6,885
	ACVI		ACVI3	ACVMV1	ACVU1	ACVV
Flexible Premium VUL contracts	$	30,626	15,089	5,048	2,343	39,106
Multiple Payment contracts		-	-	-	-	-
Single Premium contracts issued on or after April 16, 1990		6,655	-	-	269	8,989
Single Premium contracts issued prior to April 16, 1990		5	-	-	-	-
Variable Executive Life contracts		-	-	-	20	207
Total	$	37,286	15,089	5,048	2,632	48,302
	ACVVS1		WVCP	WIEP	WSCP	DVSCS
Flexible Premium VUL contracts	$	7,845	2,206	26,828	39,528	5,149
Multiple Payment contracts		-	-	-	-	-
Single Premium contracts issued on or after April 16, 1990		-	492	3,974	3,924	2,364
Single Premium contracts issued prior to April 16, 1990		-	-	-	-	-
Variable Executive Life contracts		-	25	127	80	-
Total	$	7,845	2,723	30,929	43,532	7,513
	DSIF		DCAP	DSC	DGI	FALF
Flexible Premium VUL contracts	$	259,947	18,921	836	7,493	583
Multiple Payment contracts		-	-	-	-	-
Single Premium contracts issued on or after April 16, 1990		29,124	7,877	-	1,487	-
Single Premium contracts issued prior to April 16, 1990		159	-	-	-	-
Variable Executive Life contracts		1,172	-	-	30	-
Total	$	290,402	26,798	836	9,010	583

(Continued)

63

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

	FVCA2P		FVMOS	FQB	FEIP	FGP
Flexible Premium VUL contracts	$	131	478	4,392	265,743	354,886
Multiple Payment contracts		-	-	-	583	853
Single Premium contracts issued on or after April 16, 1990		-	-	3,906	51,612	55,427
Single Premium contracts issued prior to April 16, 1990		-	-	-	670	727
Variable Executive Life contracts		-	-	-	1,692	2,128
Total	$	131	478	8,298	320,300	414,021
	FHIP		FHIPR	FOP	FOSR	FAMP
Flexible Premium VUL contracts	$	58,754	8,638	53,335	26,980	82,470
Multiple Payment contracts		112	-	571	-	-
Single Premium contracts issued on or after April 16, 1990		14,642	-	18,979	-	25,538
Single Premium contracts issued prior to April 16, 1990		245	-	307	-	200
Variable Executive Life contracts		353	34	52	45	92
Total	$	74,106	8,672	73,244	27,025	108,300
	FCP		FIGBS	FGOP	FMCS	FVSS
Flexible Premium VUL contracts	$	276,530	16,348	17,452	45,167	3,773
Multiple Payment contracts		-	-	-	-	-
Single Premium contracts issued on or after April 16, 1990		42,360	-	1,151	-	1,401
Single Premium contracts issued prior to April 16, 1990		-	-	59	-	-
Variable Executive Life contracts		892	25	-	121	-
Total	$	319,782	16,373	18,662	45,288	5,174
	FNRS2		FF10S	FF20S	FF30S	FTVDM3
Flexible Premium VUL contracts	$	32,258	3,978	3,666	3,830	9,263
Multiple Payment contracts		-	-	-	-	-
Single Premium contracts issued on or after April 16, 1990		-	-	-	-	-
Single Premium contracts issued prior to April 16, 1990		-	-	-	-	-
Variable Executive Life contracts		140	-	-	-	85
Total	$	32,398	3,978	3,666	3,830	9,348

(Continued)

64

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

	TIF		TIF3	FTVFA2	FTVGI3	FTVIS2
Flexible Premium VUL contracts	$	2,960	9,262	9	11,755	5,334
Multiple Payment contracts		-	-	-	-	-
Single Premium contracts issued on or after April 16, 1990		-	-	-	-	-
Single Premium contracts issued prior to April 16, 1990		-	-	-	-	-
Variable Executive Life contracts		-	-	-	176	-
Total	$	2,960	9,262	9	11,931	5,334
	FTVRDI		FTVSVI	JABS	JACAS	JAGTS
Flexible Premium VUL contracts	$	17,534	15,178	2,708	20,362	4,504
Multiple Payment contracts		-	-	-	-	-
Single Premium contracts issued on or after April 16, 1990		-	-	-	3,718	763
Single Premium contracts issued prior to April 16, 1990		-	-	-	-	-
Variable Executive Life contracts		-	-	-	18	-
Total	$	17,534	15,178	2,708	24,098	5,267
	JARLCS		JAIGS	JAIGS2	AMTB	MIGIC
Flexible Premium VUL contracts	$	619	12,227	27,341	12,211	1,114
Multiple Payment contracts		-	-	-	2	-
Single Premium contracts issued on or after April 16, 1990		-	6,788	-	4,799	-
Single Premium contracts issued prior to April 16, 1990		-	-	-	89	-
Variable Executive Life contracts		-	29	165	74	-
Total	$	619	19,044	27,506	17,175	1,114
	MVFIC		GVAAA2	GVABD2	GVAGG2	GVAGR2
Flexible Premium VUL contracts	$	8,152	5,047	6,228	7,285	7,918
Multiple Payment contracts		-	-	-	-	-
Single Premium contracts issued on or after April 16, 1990		-	-	-	-	-
Single Premium contracts issued prior to April 16, 1990		-	-	-	-	-
Variable Executive Life contracts		-	-	-	-	49
Total	$	8,152	5,047	6,228	7,285	7,967

(Continued)

65

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

	GVAGI2		NVCRA1	NVCRB1	NVCCA1	NVCCN1
Flexible Premium VUL contracts	$	3,335	119	375	509	105
Multiple Payment contracts		-	-	-	-	-
Single Premium contracts issued on or after April 16, 1990		-	-	-	-	-
Single Premium contracts issued prior to April 16, 1990		-	-	-	-	-
Variable Executive Life contracts		-	-	-	-	-
Total	$	3,335	119	375	509	105
	NVCMD1		NVCMA1	NVCMC1	NVCBD1	HIBF
Flexible Premium VUL contracts	$	938	215	36	18	594
Multiple Payment contracts		-	-	-	-	-
Single Premium contracts issued on or after April 16, 1990		-	-	-	-	-
Single Premium contracts issued prior to April 16, 1990		-	-	-	-	-
Variable Executive Life contracts		-	-	-	-	-
Total	$	938	215	36	18	594
	HIBF3		GEM	GEM3	GVGU1	GIG
Flexible Premium VUL contracts	$	4,223	7,082	28,564	5,695	5,814
Multiple Payment contracts		-	-	-	-	-
Single Premium contracts issued on or after April 16, 1990		-	7,993	-	3,752	5,120
Single Premium contracts issued prior to April 16, 1990		-	-	-	-	-
Variable Executive Life contracts		-	-	59	-	81
Total	$	4,223	15,075	28,623	9,447	11,015
	GIG3		GVGF1	GBF	CAF	GVGH1
Flexible Premium VUL contracts	$	40	2,589	49,478	81,257	690
Multiple Payment contracts		-	-	-	-	-
Single Premium contracts issued on or after April 16, 1990		-	1,176	26,622	2,477	2,078
Single Premium contracts issued prior to April 16, 1990		-	-	190	-	-
Variable Executive Life contracts		-	-	4	163	-
Total	$	40	3,765	76,294	83,897	2,768

(Continued)

66

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

	GVGHS		GVIX6	GVIDA	GVIDC	GVIDM
Flexible Premium VUL contracts	$	2,517	2,034	19,470	4,667	26,315
Multiple Payment contracts		-	-	-	-	-
Single Premium contracts issued on or after April 16, 1990		-	-	43	262	5,189
Single Premium contracts issued prior to April 16, 1990		-	-	-	-	-
Variable Executive Life contracts		-	-	-	-	-
Total	$	2,517	2,034	19,513	4,929	31,504
	GVDMA		GVDMC	NVLCP1	SGRF	MCIF
Flexible Premium VUL contracts	$	32,940	13,343	-	3,633	23,320
Multiple Payment contracts		-	-	-	-	-
Single Premium contracts issued on or after April 16, 1990		4,991	4,038	-	907	4,555
Single Premium contracts issued prior to April 16, 1990		-	-	-	-	4
Variable Executive Life contracts		53	-	-	8	49
Total	$	37,984	17,381	-	4,548	27,928
	SAM		NVMIG3	GVDIVI	GVDIV3	NVMLG1
Flexible Premium VUL contracts	$	129,658	2	2,480	7,728	-
Multiple Payment contracts		61	-	-	-	-
Single Premium contracts issued on or after April 16, 1990		52,116	-	-	-	-
Single Premium contracts issued prior to April 16, 1990		492	-	-	-	-
Variable Executive Life contracts		1,634	-	-	1	-
Total	$	183,961	2	2,480	7,729	-
	NVMLV1		NVMMG1	SCGF	SCVF	SCF
Flexible Premium VUL contracts	$	150	-	5,242	29,864	106,061
Multiple Payment contracts		-	-	-	-	-
Single Premium contracts issued on or after April 16, 1990		-	-	1,416	5,663	4,548
Single Premium contracts issued prior to April 16, 1990		-	-	5	157	112
Variable Executive Life contracts		-	-	15	70	879
Total	$	150	-	6,678	35,754	111,600

(Continued)

67

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

	TRF		GVUS1	NVNMO1	NVNSR1	NVSTB2
Flexible Premium VUL contracts	$	353,232	2,392	6	-	407
Multiple Payment contracts		-	-	-	-	-
Single Premium contracts issued on or after April 16, 1990		14,332	379	-	-	-
Single Premium contracts issued prior to April 16, 1990		123	-	-	-	-
Variable Executive Life contracts		882	-	-	-	-
Total	$	368,569	2,771	6	-	407
	GGTC		GGTC3	GVUG1	EIF	MSBF
Flexible Premium VUL contracts	$	1,449	2,068	3,247	3,519	6,037
Multiple Payment contracts		-	-	-	-	-
Single Premium contracts issued on or after April 16, 1990		799	-	693	-	1,270
Single Premium contracts issued prior to April 16, 1990		-	-	-	-	-
Variable Executive Life contracts		-	-	1	-	-
Total	$	2,248	2,068	3,941	3,519	7,307
	NVRE1		AMBP	AMTG	AMGP	AMINS
Flexible Premium VUL contracts	$	99	1,374	76,612	8,040	1,585
Multiple Payment contracts		-	-	160	-	-
Single Premium contracts issued on or after April 16, 1990		-	-	10,480	502	-
Single Premium contracts issued prior to April 16, 1990		-	-	414	-	-
Variable Executive Life contracts		-	-	122	-	-
Total	$	99	1,374	87,788	8,542	1,585
	AMMCGS		AMTP	AMRS	AMFAS	AMSRS
Flexible Premium VUL contracts	$	2,904	95,785	834	457	1,957
Multiple Payment contracts		-	-	-	-	-
Single Premium contracts issued on or after April 16, 1990		-	9,307	-	-	-
Single Premium contracts issued prior to April 16, 1990		-	-	-	-	-
Variable Executive Life contracts		-	360	-	23	-
Total	$	2,904	105,452	834	480	1,957

(Continued)

68

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

	OVMS		OVGR	OVB	OVGS3	OVGS
Flexible Premium VUL contracts	$	45,371	41,358	40,725	35,697	112,819
Multiple Payment contracts		200	-	4	-	-
Single Premium contracts issued on or after April 16, 1990		14,901	5,484	6,668	-	18,490
Single Premium contracts issued prior to April 16, 1990		-	-	-	-	-
Variable Executive Life contracts		18	35	7	287	626
Total	$	60,490	46,877	47,404	35,984	131,935
	OVHI3		OVHI	OVSC	OVGI	OVAG
Flexible Premium VUL contracts	$	567	1,293	3,972	6,451	5,364
Multiple Payment contracts		-	-	-	-	-
Single Premium contracts issued on or after April 16, 1990		-	-	-	560	455
Single Premium contracts issued prior to April 16, 1990		-	-	-	-	-
Variable Executive Life contracts		-	-	-	-	-
Total	$	567	1,293	3,972	7,011	5,819
	PVGIB		PVTIGB	PVTVB	TRBCG2	TREI2
Flexible Premium VUL contracts	$	457	2,033	167	3,790	6,903
Multiple Payment contracts		-	-	-	-	-
Single Premium contracts issued on or after April 16, 1990		-	-	-	-	-
Single Premium contracts issued prior to April 16, 1990		-	-	-	-	-
Variable Executive Life contracts		-	-	-	59	-
Total	$	457	2,033	167	3,849	6,903
	TRLT2		DSRG	VWBF	VWEM	VWHA
Flexible Premium VUL contracts	$	5,085	40,659	12,922	37,525	58,515
Multiple Payment contracts		-	-	23	-	-
Single Premium contracts issued on or after April 16, 1990		-	1,268	9,758	6,895	29,452
Single Premium contracts issued prior to April 16, 1990		-	-	124	-	-
Variable Executive Life contracts		-	-	65	88	218
Total	$	5,085	41,927	22,892	44,508	88,185

(Continued)

69

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

	MSVFI		MSEM	MSVRE	SVDF	SVOF
Flexible Premium VUL contracts	$	4,254	8,700	62,969	37,054	132,675
Multiple Payment contracts		-	-	-	-	12
Single Premium contracts issued on or after April 16, 1990		-	1,345	10,184	3,865	16,928
Single Premium contracts issued prior to April 16, 1990		-	113	-	-	112
Variable Executive Life contracts		37	-	250	-	-
Total	$	4,291	10,158	73,403	40,919	149,727

(4) Death Benefits

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

(5) Policy Loans (Net of Repayments)

Contract provisions allow contract owners to borrow 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 credited 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, 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, but are included in Net Policy (Loans) Repayments. The fixed account assets are not reflected in the accompanying financial statements. For the periods ended December 31, 2008 and 2007, total transfers into the Account from the fixed account were $24,207,234 and $25,005,246, respectively, and total transfers from the Account to the fixed account were $31,489,904 and $26,261,704, respectively.

(7) Fair Value Measurement

SFAS 157 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Account generally uses the market approach as the valuation technique due to the nature of the mutual fund investments offered in the Account. This technique maximizes the use of observable inputs and minimizes the use of unobservable inputs.

In accordance with SFAS 157, the Account categorized its financial instruments into a three level hierarchy based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument in its entirety.

(Continued)

70

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

The Company categorizes financial assets recorded at fair value as follows:

• Level 1 – Unadjusted quoted prices accessible in active markets for identical assets at the measurement date. The assets utilizing Level 1 valuations represent investments in publicly-traded registered mutual funds with quoted market prices.

• Level 2 – Unadjusted quoted prices for similar assets in active markets or inputs (other than quoted prices) that are observable or that are derived principally from or corroborated by observable market data through correlation or other means. The assets utilizing Level 2 valuations represent investments in privately-traded registered mutual funds only offered through insurance products.

• Level 3 – Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. The Account invests only in funds with fair value measurements in the first two levels of the fair value hierarchy.

The following table summarizes assets measured at fair value on a recurring basis as of December 31, 2008:

	Level 1	Level 2		Level 3	Total
Separate Account Investments	0	$	566,844,171	0	$	566,844,171

Accounts Payable of $17,453 are measured at settlement value which approximates the fair value due to the short-term nature of such liabilities.

The Account did not have any assets or liabilities reported at fair value on a nonrecurring basis required to be disclosed under SFAS 157.

(Continued)

71

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

(8) Financial Highlights

The following tabular presentation is a summary of units, unit fair values and contract owners’ equity outstanding for variable annuity contracts as of the end of the periods indicated, and the contract expense rate, investment income ratio and total return for each of the periods in the five year period ended December 31, 2008.

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Initial Offering Date^
AIM VIF - Basic Value Fund - Series I (AVBVI)
2008	0.00	%	5,955	$	8.509083	$	50,672	0.76	%	-51.77	%
2008	0.50	%	19,612		8.271175		162,214	0.76	%	-52.01	%
2008	0.80	%	3,970		8.131642		32,283	0.76	%	-52.15	%
2007	0.00	%	1,070		17.641592		18,877	0.50	%	1.54	%
2007	0.50	%	40,204		17.234687		692,903	0.50	%	1.03	%
2007	0.80	%	10,750		16.995087		182,697	0.50	%	0.73	%
2006	0.00	%	1,192		17.373346		20,709	0.55	%	13.20	%
2006	0.50	%	55,976		17.058177		954,849	0.55	%	12.64	%
2006	0.80	%	20,662		16.871856		348,606	0.55	%	12.30	%
2005	0.00	%	1,026		15.346928		15,746	0.09	%	5.74	%
2005	0.50	%	27,146		15.143837		411,095	0.09	%	5.21	%
2005	0.80	%	24,934		15.023289		374,591	0.09	%	4.90	%
2004	0.00	%	738		14.514365		10,712	0.00	%	11.07	%
2004	0.50	%	2,482		14.393873		35,726	0.00	%	10.52	%
2004	0.80	%	43,590		14.322072		624,299	0.00	%	10.18	%
AIM VIF - Capital Appreciation Fund - Series I (AVCA)
2008	0.00	%	681		9.848393		6,707	0.00	%	-42.49	%
2008	0.50	%	5,870		9.573139		56,194	0.00	%	-42.78	%
2008	0.80	%	605		9.411708		5,694	0.00	%	-42.95	%
2007	0.00	%	692		17.125365		11,851	0.00	%	12.01	%
2007	0.50	%	17,866		16.730402		298,905	0.00	%	11.45	%
2007	0.80	%	2,752		16.497826		45,402	0.00	%	11.12	%
2006	0.50	%	2,876		15.011307		43,173	0.04	%	5.77	%
2006	0.80	%	1,686		14.847340		25,033	0.04	%	5.46	%
2005	0.00	%	780		14.382523		11,218	0.04	%	8.84	%
2005	0.50	%	288		14.192232		4,087	0.04	%	8.29	%
2005	0.80	%	4,924		14.079275		69,326	0.04	%	7.97	%
2004	0.00	%	76		13.214909		1,004	0.00	%	6.63	%
2004	0.50	%	310		13.105225		4,063	0.00	%	6.09	%
2004	0.80	%	4,090		13.039850		53,333	0.00	%	5.78	%
AIM VIF - Capital Development Fund - Series I (AVCDI)
2008	0.00	%	3,277		11.267930		36,925	0.00	%	-47.03	%
2008	0.50	%	9,085		10.952988		99,508	0.00	%	-47.29	%
2008	0.80	%	3,567		10.768244		38,410	0.00	%	-47.45	%
2007	0.00	%	2,980		21.270438		63,386	0.00	%	10.84	%
2007	0.50	%	23,104		20.779892		480,099	0.00	%	10.29	%
2007	0.80	%	5,092		20.491015		104,340	0.00	%	9.96	%
2006	0.00	%	2,070		19.189430		39,722	0.00	%	16.52	%
2006	0.50	%	11,446		18.841359		215,658	0.00	%	15.94	%
2006	0.80	%	7,586		18.635564		141,369	0.00	%	15.59	%
2005	0.00	%	2,094		16.468791		34,486	0.00	%	9.60	%
2005	0.50	%	3,614		16.250893		58,731	0.00	%	9.06	%
2005	0.80	%	9,328		16.121553		150,382	0.00	%	8.73	%

(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***		Initial Offering Date^
2004	0.00	%	2,534	$	15.025595	$	38,075	0.00	%	15.50	%
2004	0.50	%	4,050		14.900870		60,349	0.00	%	14.92	%
2004	0.80	%	9,498		14.826548		140,823	0.00	%	14.58	%
AllianceBernstein VPS - Growth and Income Portfolio - Class A (ALVGIA)
2008	0.00	%	16,526		10.649521		175,994	2.08	%	-40.60	%
2008	0.50	%	28,510		10.351889		295,132	2.08	%	-40.90	%
2008	0.80	%	5,311		10.177334		54,052	2.08	%	-41.08	%
2007	0.00	%	18,646		17.929588		334,315	1.55	%	5.12	%
2007	0.50	%	20,390		17.516124		357,154	1.55	%	4.59	%
2007	0.80	%	15,124		17.272663		261,232	1.55	%	4.28	%
2006	0.00	%	19,406		17.056580		331,000	1.47	%	17.29	%
2006	0.50	%	15,978		16.747221		267,587	1.47	%	16.70	%
2006	0.80	%	28,032		16.564321		464,331	1.47	%	16.35	%
2005	0.00	%	17,122		14.542693		249,000	1.68	%	4.87	%
2005	0.50	%	10,070		14.350279		144,507	1.68	%	4.35	%
2005	0.80	%	37,766		14.236062		537,639	1.68	%	4.03	%
2004	0.00	%	18,484		13.867818		256,333	0.96	%	11.46	%
2004	0.50	%	9,008		13.752717		123,884	0.96	%	10.91	%
2004	0.80	%	38,966		13.684124		533,216	0.96	%	10.57	%
AllianceBernstein VPS - Small-Mid Cap Value Portfolio - Class A (ALVSVA)
2008	0.00	%	5,223		13.192861		68,906	0.75	%	-35.58	%
2008	0.50	%	30,212		12.824196		387,445	0.75	%	-35.90	%
2008	0.80	%	7,514		12.607947		94,736	0.75	%	-36.09	%
2007	0.00	%	4,368		20.478040		89,448	1.06	%	1.70	%
2007	0.50	%	38,038		20.005857		760,983	1.06	%	1.19	%
2007	0.80	%	10,032		19.727780		197,909	1.06	%	0.89	%
2006	0.00	%	2,614		20.134859		52,633	0.39	%	14.42	%
2006	0.50	%	36,812		19.769734		727,763	0.39	%	13.85	%
2006	0.80	%	22,658		19.553834		443,051	0.39	%	13.51	%
2005	0.00	%	3,250		17.597332		57,191	0.72	%	6.91	%
2005	0.50	%	26,464		17.364568		459,536	0.72	%	6.38	%
2005	0.80	%	29,330		17.226379		505,250	0.72	%	6.06	%
2004	0.00	%	6,962		16.459431		114,591	0.13	%	19.30	%
2004	0.50	%	2,172		16.322856		35,453	0.13	%	18.71	%
2004	0.80	%	43,250		16.241455		702,443	0.13	%	18.35	%
American Century VP - Balanced Fund - Class I (ACVB)
2008	0.00	%	23,201		17.275155		400,801	2.47	%	-20.33	%
2008	0.50	%	98,678		21.526265		2,124,169	2.47	%	-20.73	%
2008	0.80	%	46,134		21.023041		969,877	2.47	%	-20.97	%
2008	1.00	%	57,666		9.677622		558,070	2.47	%	-21.13	%
2007	0.00	%	27,022		21.683809		585,940	2.12	%	4.94	%
2007	0.50	%	72,948		27.155398		1,980,932	2.12	%	4.41	%
2007	0.80	%	62,528		26.600354		1,663,267	2.12	%	4.09	%
2007	1.00	%	38,914		12.269595		477,459	2.12	%	3.89	%
2007	1.30	%	8		24.593469		197	2.12	%	3.57	%
2006	0.00	%	29,950		20.663955		618,885	1.93	%	9.62	%
2006	0.50	%	58,648		26.008605		1,525,353	1.93	%	9.07	%
2006	0.80	%	90,872		25.553959		2,322,139	1.93	%	8.75	%
2006	1.00	%	44,838		11.810656		529,566	1.93	%	8.53	%
2006	1.30	%	990		23.745073		23,508	1.93	%	8.21	%
2005	0.00	%	40,316		18.850696		759,985	1.83	%	4.93	%
2005	0.50	%	50,386		23.844923		1,201,450	1.83	%	4.41	%

(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***		Initial Offering Date^
2005	0.80	%	119,320	$	23.498278	$	2,803,815	1.83	%	4.10	%
2005	1.00	%	52,040		10.882231		566,311	1.83	%	3.89	%
2005	1.30	%	2,878		21.944037		63,155	1.83	%	3.58	%
2004	0.00	%	40,968		17.964228		735,958	1.68	%	9.78	%
2004	0.50	%	28,138		22.837145		642,592	1.68	%	9.23	%
2004	0.80	%	159,436		22.572554		3,598,878	1.68	%	8.90	%
2004	1.30	%	35,358		21.184881		749,055	1.68	%	8.36	%
American Century VP - Capital Appreciation Fund - Class I (ACVCA)
2008	0.00	%	41,738		12.771185		533,044	0.00	%	-46.18	%
2008	0.50	%	182,727		31.556083		5,766,148	0.00	%	-46.45	%
2008	0.80	%	130,432		19.501606		2,543,633	0.00	%	-46.61	%
2008	1.00	%	143,436		6.337501		909,026	0.00	%	-46.72	%
2007	0.00	%	57,452		23.730825		1,363,383	0.00	%	45.80	%
2007	0.50	%	191,634		58.930990		11,293,181	0.00	%	45.07	%
2007	0.80	%	170,672		36.529047		6,234,486	0.00	%	44.64	%
2007	1.00	%	220,292		11.894815		2,620,333	0.00	%	44.35	%
2007	1.30	%	2		36.460250		73	0.00	%	43.91	%
2006	0.00	%	58,212		16.275964		947,456	0.00	%	17.22	%
2006	0.50	%	148,624		40.621668		6,037,355	0.00	%	16.64	%
2006	0.80	%	250,368		25.255777		6,323,238	0.00	%	16.29	%
2006	1.00	%	149,970		8.240477		1,235,824	0.00	%	16.06	%
2006	1.30	%	556		25.335087		14,086	0.00	%	15.71	%
2005	0.00	%	73,308		13.885054		1,017,886	0.00	%	22.06	%
2005	0.50	%	104,698		34.827698		3,646,390	0.00	%	21.46	%
2005	0.80	%	365,618		21.718376		7,940,629	0.00	%	21.09	%
2005	1.00	%	171,146		7.100441		1,215,212	0.00	%	20.85	%
2005	1.30	%	6,016		21.895512		131,723	0.00	%	20.49	%
2004	0.00	%	71,068		11.375351		808,423	0.00	%	7.58	%
2004	0.50	%	59,666		28.675107		1,710,929	0.00	%	7.05	%
2004	0.80	%	460,364		17.935168		8,256,706	0.00	%	6.73	%
2004	1.30	%	66,996		18.171733		1,217,433	0.00	%	6.19	%
American Century VP - Income & Growth Fund - Class I (ACVIG)
2008	0.00	%	29,644		9.964615		295,391	2.06	%	-34.59	%
2008	0.50	%	123,288		9.446908		1,164,690	2.06	%	-34.91	%
2008	0.80	%	27,111		9.149298		248,047	2.06	%	-35.11	%
2008	1.00	%	9,362		7.401733		69,295	2.06	%	-35.24	%
2007	0.00	%	27,666		15.233128		421,440	1.88	%	-0.07	%
2007	0.50	%	111,674		14.514258		1,620,865	1.88	%	-0.57	%
2007	0.80	%	55,800		14.099337		786,743	1.88	%	-0.87	%
2007	1.00	%	14,802		11.429189		169,175	1.88	%	-1.07	%
2006	0.00	%	28,052		15.243369		427,607	1.88	%	17.09	%
2006	0.50	%	110,050		14.597227		1,606,425	1.88	%	16.50	%
2006	0.80	%	99,066		14.222782		1,408,994	1.88	%	16.16	%
2006	1.00	%	24,302		11.552475		280,748	1.88	%	15.93	%
2005	0.00	%	27,378		13.018850		356,430	2.03	%	4.63	%
2005	0.50	%	83,992		12.529281		1,052,359	2.03	%	4.11	%
2005	0.80	%	157,452		12.244450		1,927,913	2.03	%	3.80	%
2005	1.00	%	20,504		9.965424		204,331	2.03	%	3.59	%
2005	1.30	%	8,246		11.784027		97,171	2.03	%	3.28	%

(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***		Initial Offering Date^
2004	0.00	%	42,110	$	12.442664	$	523,961	1.44	%	12.99	%
2004	0.50	%	28,284		12.034610		340,387	1.44	%	12.43	%
2004	0.80	%	220,344		11.796249		2,599,233	1.44	%	12.09	%
2004	1.30	%	31,276		11.409408		356,841	1.44	%	11.53	%
American Century VP - Inflation Protection Fund - Class II (ACVIP2)
2008	0.00	%	25,234		12.144940		306,465	4.87	%	-1.59	%
2008	0.50	%	84,313		11.804557		995,278	4.87	%	-2.08	%
2008	0.80	%	17,280		11.604121		200,519	4.87	%	-2.38	%
2007	0.00	%	16,186		12.340997		199,751	4.41	%	9.49	%
2007	0.50	%	44,004		12.055397		530,486	4.41	%	8.94	%
2007	0.80	%	14,896		11.886541		177,062	4.41	%	8.61	%
2006	0.00	%	14,560		11.270913		164,104	3.22	%	1.59	%
2006	0.50	%	25,006		11.065707		276,709	3.22	%	1.08	%
2006	0.80	%	38,652		10.943891		423,003	3.22	%	0.78	%
2005	0.00	%	10,992		11.094803		121,954	4.38	%	1.56	%
2005	0.50	%	24,828		10.947391		271,802	4.38	%	1.06	%
2005	0.80	%	71,902		10.859530		780,822	4.38	%	0.75	%
2004	0.00	%	7,602		10.924094		83,045	3.57	%	5.81	%
2004	0.50	%	9,540		10.832965		103,346	3.57	%	5.28	%
2004	0.80	%	72,104		10.778433		777,168	3.57	%	4.96	%
American Century VP - International Fund - Class I (ACVI)
2008	0.00	%	31,455		15.415539		484,896	0.86	%	-44.82	%
2008	0.50	%	167,006		15.879697		2,652,005	0.86	%	-45.10	%
2008	0.80	%	35,916		15.456745		555,144	0.86	%	-45.26	%
2008	1.00	%	62,231		6.491776		403,990	0.86	%	-45.37	%
2007	0.00	%	38,002		27.938306		1,061,712	0.72	%	18.06	%
2007	0.50	%	180,196		28.924155		5,212,017	0.72	%	17.46	%
2007	0.80	%	73,188		28.238561		2,066,724	0.72	%	17.11	%
2007	1.00	%	79,918		11.883894		949,737	0.72	%	16.88	%
2007	1.30	%	354		26.406669		9,348	0.72	%	16.52	%
2006	0.00	%	42,276		23.665218		1,000,471	1.65	%	25.03	%
2006	0.50	%	181,244		24.623712		4,462,900	1.65	%	24.40	%
2006	0.80	%	165,218		24.112654		3,983,844	1.65	%	24.03	%
2006	1.00	%	60,986		10.167970		620,104	1.65	%	23.79	%
2006	1.30	%	6,172		22.662010		139,870	1.65	%	23.42	%
2005	0.00	%	52,474		18.928348		993,246	1.27	%	13.25	%
2005	0.50	%	109,946		19.793391		2,176,204	1.27	%	12.69	%
2005	0.80	%	311,096		19.440637		6,047,904	1.27	%	12.35	%
2005	1.00	%	61,088		8.214210		501,790	1.27	%	12.13	%
2005	1.30	%	14,464		18.362361		265,593	1.27	%	11.80	%
2004	0.00	%	63,654		16.713189		1,063,861	0.58	%	14.92	%
2004	0.50	%	59,792		17.564316		1,050,206	0.58	%	14.35	%
2004	0.80	%	471,466		17.302961		8,157,758	0.58	%	14.01	%
2004	1.30	%	55,662		16.424915		914,244	0.58	%	13.44	%
American Century VP - International Fund - Class III (ACVI3)
2008	0.00	%	25,760		9.507294		244,908	0.79	%	-44.82	%
2008	0.50	%	146,762		9.334573		1,369,961	0.79	%	-45.10	%
2008	0.80	%	43,028		9.232446		397,254	0.79	%	-45.26	%
2007	0.00	%	25,082		17.230511		432,176	0.60	%	18.06	%
2007	0.50	%	129,282		17.002494		2,198,116	0.60	%	17.46	%
2007	0.80	%	56,198		16.867137		947,899	0.60	%	17.11	%

(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***		Initial Offering Date^
2006	0.00	%	20,366	$	14.595156	$	297,245	1.19	%	25.03	%
2006	0.50	%	52,054		14.474561		753,459	1.19	%	24.40	%
2006	0.80	%	80,238		14.402688		1,155,643	1.19	%	24.03	%
2005	0.00	%	20,404		11.673757		238,191	0.00	%	16.74	%	5/2/2005
2005	0.50	%	43,276		11.635157		503,523	0.00	%	16.35	%	5/2/2005
2005	0.80	%	69,942		11.612061		812,171	0.00	%	16.12	%	5/2/2005
American Century VP - Mid Cap Value Fund - Class I (ACVMV1)
2008	0.00	%	4,099		10.066767		41,264	0.09	%	-24.35	%
2008	0.50	%	66,882		9.883888		661,054	0.09	%	-24.73	%
2008	0.80	%	9,574		9.775760		93,593	0.09	%	-24.95	%
2007	0.00	%	3,036		13.306496		40,399	0.70	%	-2.31	%
2007	0.50	%	69,408		13.130382		911,354	0.70	%	-2.80	%
2007	0.80	%	15,018		13.025836		195,622	0.70	%	-3.09	%
2006	0.00	%	5,932		13.620466		80,797	1.31	%	20.30	%
2006	0.50	%	28,362		13.507944		383,112	1.31	%	19.70	%
2006	0.80	%	15,610		13.440882		209,812	1.31	%	19.34	%
2005	0.00	%	956		11.322176		10,824	1.06	%	13.22	%	5/2/2005
2005	0.50	%	2,498		11.284751		28,189	1.06	%	12.85	%	5/2/2005
2005	0.80	%	5,722		11.262347		64,443	1.06	%	12.62	%	5/2/2005
American Century VP - Ultra(R) Fund - Class I (ACVU1)
2008	0.00	%	5,710		7.776182		44,402	0.00	%	-41.48	%
2008	0.50	%	26,006		7.521089		195,593	0.00	%	-41.77	%
2008	0.80	%	6,452		7.372083		47,565	0.00	%	-41.95	%
2008	1.00	%	2,588		7.274343		18,826	0.00	%	-42.06	%
2007	0.00	%	9,952		13.288079		132,243	0.00	%	21.02	%
2007	0.50	%	51,430		12.916798		664,311	0.00	%	20.41	%
2007	0.80	%	11,886		12.699015		150,940	0.00	%	20.05	%
2007	1.00	%	2,778		12.555821		34,880	0.00	%	19.81	%
2006	0.00	%	9,430		10.980437		103,546	0.00	%	-3.28	%
2006	0.50	%	21,516		10.727394		230,811	0.00	%	-3.76	%
2006	0.80	%	18,008		10.578387		190,496	0.00	%	-4.04	%
2006	1.00	%	1,340		10.480144		14,043	0.00	%	-4.24	%
2005	0.00	%	9,754		11.352287		110,730	0.00	%	2.17	%
2005	0.50	%	20,298		11.146133		226,244	0.00	%	1.66	%
2005	0.80	%	34,120		11.024259		376,148	0.00	%	1.35	%
2005	1.00	%	5,288		10.943695		57,870	0.00	%	1.15	%
2004	0.00	%	12,672		11.111676		140,807	0.00	%	10.68	%
2004	0.50	%	28,728		10.964413		314,986	0.00	%	10.12	%
2004	0.80	%	37,042		10.877007		402,906	0.00	%	9.79	%
2004	1.30	%	8,076		10.732849		86,678	0.00	%	9.25	%
American Century VP - Value Fund - Class I (ACVV)
2008	0.00	%	61,645		19.761076		1,218,172	2.47	%	-26.78	%
2008	0.50	%	229,017		18.506594		4,238,325	2.47	%	-27.14	%
2008	0.80	%	63,519		17.949130		1,140,111	2.47	%	-27.36	%
2008	1.00	%	53,224		13.097945		697,125	2.47	%	-27.51	%
2007	0.00	%	72,996		26.987072		1,969,948	1.65	%	-5.14	%
2007	0.50	%	241,306		25.400814		6,129,369	1.65	%	-5.61	%
2007	0.80	%	102,224		24.709849		2,525,940	1.65	%	-5.90	%
2007	1.00	%	72,664		18.067598		1,312,864	1.65	%	-6.09	%
2006	0.00	%	72,824		28.448790		2,071,755	1.39	%	18.65	%
2006	0.50	%	213,238		26.911603		5,738,576	1.39	%	18.06	%
2006	0.80	%	200,588		26.258655		5,267,171	1.39	%	17.71	%

(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***		Initial Offering Date^
2006	1.00	%	83,020	$	19.238731	$	1,597,199	1.39	%	17.48	%
2005	0.00	%	73,392		23.976512		1,759,684	0.88	%	5.03	%
2005	0.50	%	121,762		22.794288		2,775,478	0.88	%	4.51	%
2005	0.80	%	333,368		22.307840		7,436,720	0.88	%	4.20	%
2005	1.00	%	71,670		16.376728		1,173,720	0.88	%	3.99	%
2005	1.30	%	16,188		21.324425		345,200	0.88	%	3.68	%
2004	0.00	%	80,992		22.827520		1,848,846	1.01	%	14.33	%
2004	0.50	%	83,868		21.810391		1,829,194	1.01	%	13.76	%
2004	0.80	%	363,556		21.408869		7,783,323	1.01	%	13.42	%
2004	1.30	%	92,778		20.567340		1,908,197	1.01	%	12.86	%
American Century VP - Vista(SM) Fund - Class I (ACVVS1)
2008	0.00	%	4,820		8.973691		43,253	0.00	%	-48.62	%
2008	0.50	%	85,867		8.810636		756,543	0.00	%	-48.88	%
2008	0.80	%	14,766		8.714227		128,674	0.00	%	-49.03	%
2007	0.00	%	5,970		17.466180		104,273	0.00	%	39.77	%
2007	0.50	%	80,738		17.235095		1,391,527	0.00	%	39.07	%
2007	0.80	%	18,398		17.097896		314,567	0.00	%	38.65	%
2006	0.50	%	1,972		12.392995		24,439	0.00	%	8.47	%
2006	0.80	%	1,344		12.331439		16,573	0.00	%	8.14	%
2005	0.50	%	242		11.425723		2,765	0.00	%	14.26	%	5/2/2005
2005	0.80	%	2,306		11.403054		26,295	0.00	%	14.03	%	5/2/2005
Credit Suisse Trust - Global Small Cap Portfolio (WVCP)
2008	0.00	%	8,201		8.953554		73,428	1.73	%	-46.75	%
2008	0.50	%	19,954		8.384838		167,311	1.73	%	-47.02	%
2008	0.80	%	7,287		8.132149		59,259	1.73	%	-47.18	%
2008	1.00	%	8,593		3.649703		31,362	1.73	%	-47.28	%
2007	0.00	%	8,174		16.814740		137,444	0.00	%	-3.96	%
2007	0.50	%	19,506		15.825884		308,700	0.00	%	-4.44	%
2007	0.80	%	13,468		15.395235		207,343	0.00	%	-4.73	%
2007	1.00	%	8,982		6.923255		62,185	0.00	%	-4.92	%
2006	0.00	%	11,692		17.507392		204,696	0.00	%	13.20	%
2006	0.50	%	16,544		16.560881		273,983	0.00	%	12.64	%
2006	0.80	%	24,796		16.158907		400,676	0.00	%	12.30	%
2006	1.00	%	8,040		7.281318		58,542	0.00	%	12.08	%
2005	0.00	%	12,466		15.465259		192,790	0.00	%	16.14	%
2005	0.50	%	12,544		14.702300		184,426	0.00	%	15.57	%
2005	0.80	%	36,140		14.388419		519,997	0.00	%	15.22	%
2005	1.00	%	3,714		6.496475		24,128	0.00	%	14.99	%
2005	1.30	%	2,682		13.753775		36,888	0.00	%	14.65	%
2004	0.00	%	11,532		13.315648		153,556	0.00	%	17.99	%
2004	0.50	%	9,874		12.721972		125,617	0.00	%	17.40	%
2004	0.80	%	40,182		12.487641		501,778	0.00	%	17.05	%
2004	1.30	%	4,110		11.996474		49,306	0.00	%	16.47	%
Credit Suisse Trust - International Focus Portfolio (WIEP)
2008	0.00	%	49,413		10.593841		523,473	1.70	%	-41.03	%
2008	0.50	%	212,070		11.620666		2,464,395	1.70	%	-41.33	%
2008	0.80	%	62,405		11.295534		704,898	1.70	%	-41.51	%
2008	1.00	%	33,081		7.531248		249,141	1.70	%	-41.62	%
2007	0.00	%	56,358		17.966043		1,012,530	1.08	%	16.60	%
2007	0.50	%	215,496		19.806457		4,268,212	1.08	%	16.01	%
2007	0.80	%	91,976		19.310277		1,776,082	1.08	%	15.66	%
2007	1.00	%	39,182		12.900878		505,482	1.08	%	15.43	%

(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***		Initial Offering Date^
2006	0.00	%	90,002	$	15.408829	$	1,386,825	1.03	%	18.65	%
2006	0.50	%	169,282		17.072863		2,890,128	1.03	%	18.06	%
2006	0.80	%	174,476		16.695427		2,912,951	1.03	%	17.71	%
2006	1.00	%	25,416		11.176387		284,059	1.03	%	17.48	%
2006	1.30	%	10,164		15.763156		160,217	1.03	%	17.13	%
2005	0.00	%	94,820		12.986442		1,231,374	0.91	%	17.44	%
2005	0.50	%	62,308		14.460784		901,023	0.91	%	16.85	%
2005	0.80	%	320,444		14.183450		4,545,001	0.91	%	16.51	%
2005	1.00	%	15,960		9.513742		151,839	0.91	%	16.27	%
2005	1.30	%	24,184		13.458367		325,477	0.91	%	15.93	%
2004	0.00	%	103,404		11.058069		1,143,449	0.99	%	14.74	%
2004	0.50	%	39,228		12.375012		485,447	0.99	%	14.17	%
2004	0.80	%	369,172		12.174019		4,494,307	0.99	%	13.83	%
2004	1.30	%	41,378		11.609376		480,373	0.99	%	13.26	%
Credit Suisse Trust - Small Cap Core I Portfolio (WSCP)
2008	0.00	%	85,320		9.272942		791,167	0.08	%	-34.60	%
2008	0.50	%	271,597		12.416573		3,372,304	0.08	%	-34.92	%
2008	0.80	%	107,043		12.068936		1,291,895	0.08	%	-35.12	%
2008	1.00	%	58,869		4.737770		278,908	0.08	%	-35.25	%
2007	0.00	%	94,682		14.178269		1,342,427	0.00	%	-0.83	%
2007	0.50	%	277,018		19.080287		5,285,583	0.00	%	-1.33	%
2007	0.80	%	153,520		18.601963		2,855,773	0.00	%	-1.63	%
2007	1.00	%	65,396		7.317026		478,504	0.00	%	-1.83	%
2006	0.00	%	104,538		14.297420		1,494,624	0.00	%	4.77	%
2006	0.50	%	219,292		19.337639		4,240,590	0.00	%	4.25	%
2006	0.80	%	270,450		18.909841		5,114,166	0.00	%	3.94	%
2006	1.00	%	51,800		7.453113		386,071	0.00	%	3.73	%
2006	1.30	%	7,148		17.853550		127,617	0.00	%	3.42	%
2005	0.00	%	127,936		13.646704		1,745,905	0.00	%	-2.68	%
2005	0.50	%	125,444		18.549847		2,326,967	0.00	%	-3.16	%
2005	0.80	%	443,896		18.193863		8,076,183	0.00	%	-3.45	%
2005	1.00	%	41,474		7.185242		298,001	0.00	%	-3.65	%
2005	1.30	%	18,546		17.263500		320,169	0.00	%	-3.93	%
2004	0.00	%	136,576		14.022473		1,915,133	0.00	%	10.87	%
2004	0.50	%	82,304		19.155888		1,576,606	0.00	%	10.32	%
2004	0.80	%	539,886		18.844567		10,173,918	0.00	%	9.99	%
2004	1.30	%	42,546		17.970297		764,564	0.00	%	9.44	%
Dreyfus IP - Small Cap Stock Index Portfolio - Service Class (DVSCS)
2008	0.00	%	20,630		10.853308		223,904	0.87	%	-30.91	%
2008	0.50	%	48,249		10.497320		506,485	0.87	%	-31.26	%
2008	0.80	%	13,403		10.289367		137,908	0.87	%	-31.46	%
2008	1.00	%	18,400		10.153007		186,815	0.87	%	-31.60	%
2007	0.00	%	26,930		15.709599		423,060	0.37	%	-0.65	%
2007	0.50	%	47,664		15.270683		727,862	0.37	%	-1.15	%
2007	0.80	%	22,938		15.013257		344,374	0.37	%	-1.45	%
2007	1.00	%	18,706		14.844030		277,672	0.37	%	-1.65	%
2006	0.00	%	29,498		15.813075		466,454	0.36	%	14.41	%
2006	0.50	%	46,836		15.448774		723,559	0.36	%	13.84	%
2006	0.80	%	42,596		15.234242		648,918	0.36	%	13.50	%
2006	1.00	%	20,468		15.092865		308,921	0.36	%	13.28	%
2005	0.00	%	38,236		13.821296		528,471	0.00	%	7.23	%
2005	0.50	%	38,160		13.570376		517,846	0.00	%	6.70	%

(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***		Initial Offering Date^
2005	0.80	%	52,974	$	13.422021	$	711,018	0.00	%	6.38	%
2005	1.00	%	15,334		13.324009		204,310	0.00	%	6.17	%
2005	1.30	%	5,586		13.178346		73,614	0.00	%	5.85	%
2004	0.00	%	40,584		12.889095		523,091	0.50	%	21.88	%
2004	0.50	%	32,364		12.718312		411,615	0.50	%	21.28	%
2004	0.80	%	70,472		12.616946		889,141	0.50	%	20.91	%
2004	1.30	%	21,594		12.449758		268,840	0.50	%	20.31	%
Dreyfus Stock Index Fund, Inc. - Initial Class (DSIF)
2008	0.00	%	383,007		16.557351		6,341,581	2.05	%	-37.14	%
2008	0.50	%	952,613		22.551717		21,483,059	2.05	%	-37.46	%
2008	0.80	%	384,851		21.978365		8,458,396	2.05	%	-37.64	%
2008	1.00	%	321,585		6.572170		2,113,511	2.05	%	-37.77	%
2007	0.00	%	420,020		26.340376		11,063,485	1.70	%	5.26	%
2007	0.50	%	950,264		36.056885		34,263,560	1.70	%	4.73	%
2007	0.80	%	618,332		35.246027		21,793,746	1.70	%	4.41	%
2007	1.00	%	340,954		10.560744		3,600,728	1.70	%	4.20	%
2007	1.30	%	6		32.822912		197	1.70	%	3.89	%
2006	0.00	%	481,242		25.025241		12,043,197	1.65	%	15.50	%
2006	0.50	%	710,704		34.429253		24,469,008	1.65	%	14.92	%
2006	0.80	%	1,054,364		33.756668		35,591,815	1.65	%	14.58	%
2006	1.00	%	377,588		10.134844		3,826,795	1.65	%	14.35	%
2006	1.30	%	13,440		31.594380		424,628	1.65	%	14.01	%
2005	0.00	%	514,448		21.667325		11,146,712	1.60	%	4.69	%
2005	0.50	%	544,048		29.958454		16,298,837	1.60	%	4.17	%
2005	0.80	%	1,502,104		29.461184		44,253,762	1.60	%	3.86	%
2005	1.00	%	344,792		8.862854		3,055,841	1.60	%	3.65	%
2005	1.30	%	43,062		27.711836		1,193,327	1.60	%	3.34	%
2004	0.00	%	578,778		20.696422		11,978,634	1.80	%	10.64	%
2004	0.50	%	347,660		28.759010		9,998,357	1.80	%	10.09	%
2004	0.80	%	1,932,026		28.366357		54,804,539	1.80	%	9.76	%
2004	1.30	%	166,174		26.815353		4,456,014	1.80	%	9.21	%
Dreyfus VIF - Appreciation Portfolio - Initial Class (DCAP)
2008	0.00	%	53,547		13.043268		698,428	1.97	%	-29.55	%
2008	0.50	%	129,485		12.279988		1,590,074	1.97	%	-29.90	%
2008	0.80	%	62,193		11.900157		740,106	1.97	%	-30.11	%
2008	1.00	%	84,234		7.993118		673,292	1.97	%	-30.25	%
2007	0.00	%	53,388		18.514426		988,448	1.61	%	7.13	%
2007	0.50	%	117,308		17.518498		2,055,060	1.61	%	6.60	%
2007	0.80	%	94,654		17.027724		1,611,742	1.61	%	6.27	%
2007	1.00	%	78,734		11.460137		902,302	1.61	%	6.06	%
2006	0.00	%	57,100		17.281782		986,790	1.49	%	16.48	%
2006	0.50	%	100,824		16.434584		1,657,000	1.49	%	15.90	%
2006	0.80	%	155,994		16.022432		2,499,403	1.49	%	15.55	%
2006	1.00	%	77,230		10.805247		834,489	1.49	%	15.32	%
2006	1.30	%	10,234		15.282356		156,400	1.49	%	14.98	%
2005	0.00	%	63,038		14.837109		935,302	0.02	%	4.38	%
2005	0.50	%	71,712		14.180252		1,016,894	0.02	%	3.86	%
2005	0.80	%	211,690		13.866041		2,935,302	0.02	%	3.55	%
2005	1.00	%	21,248		9.369677		199,087	0.02	%	3.34	%
2005	1.30	%	52,560		13.291662		698,610	0.02	%	3.03	%
2004	0.00	%	68,432		14.214838		972,750	1.63	%	5.05	%
2004	0.50	%	39,366		13.653414		537,480	1.63	%	4.52	%

(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***		Initial Offering Date^
2004	0.80	%	279,490	$	13.390880	$	3,742,617	1.63	%	4.21	%
2004	1.30	%	69,410		12.900329		895,412	1.63	%	3.69	%
Dreyfus VIF - Developing Leaders Portfolio - Initial Class (DSC)
2008	0.00	%	175		8.753397		1,532	0.93	%	-37.59	%
2008	0.50	%	9,322		8.508710		79,318	0.93	%	-37.90	%
2008	0.80	%	3,511		8.365189		29,370	0.93	%	-38.09	%
2007	0.00	%	178		14.026060		2,497	0.83	%	-11.06	%
2007	0.50	%	9,412		13.702540		128,968	0.83	%	-11.51	%
2007	0.80	%	4,684		13.512011		63,290	0.83	%	-11.77	%
2006	0.00	%	3,288		15.770049		51,852	0.43	%	3.77	%
2006	0.50	%	9,442		15.484023		146,200	0.43	%	3.25	%
2006	0.80	%	11,426		15.314886		174,988	0.43	%	2.95	%
2005	0.00	%	5,054		15.197076		76,806	0.00	%	5.80	%
2005	0.50	%	6,920		14.996047		103,773	0.00	%	5.27	%
2005	0.80	%	17,282		14.876684		257,099	0.00	%	4.96	%
2004	0.00	%	3,802		14.363942		54,612	0.22	%	11.34	%
2004	0.50	%	4,108		14.244729		58,517	0.22	%	10.79	%
2004	0.80	%	22,806		14.173675		323,245	0.22	%	10.45	%
Dreyfus VIF - Growth and Income Portfolio - Initial Class (DGI)
2008	0.00	%	31,342		10.677601		334,657	0.66	%	-40.41	%
2008	0.50	%	57,462		9.999637		574,599	0.66	%	-40.71	%
2008	0.80	%	28,885		9.698392		280,138	0.66	%	-40.89	%
2008	1.00	%	15,792		6.559473		103,587	0.66	%	-41.01	%
2007	0.00	%	33,820		17.918567		606,006	0.76	%	8.45	%
2007	0.50	%	42,986		16.865204		724,968	0.76	%	7.90	%
2007	0.80	%	47,184		16.406411		774,120	0.76	%	7.58	%
2007	1.00	%	16,816		11.118706		186,972	0.76	%	7.36	%
2006	0.00	%	38,470		16.523102		635,644	0.77	%	14.51	%
2006	0.50	%	10,806		15.630140		168,899	0.77	%	13.94	%
2006	0.80	%	83,514		15.250864		1,273,661	0.77	%	13.60	%
2006	1.00	%	22,804		10.356384		236,167	0.77	%	13.38	%
2005	0.00	%	35,564		14.429123		513,157	1.34	%	3.35	%
2005	0.50	%	11,612		13.717541		159,288	1.34	%	2.84	%
2005	0.80	%	98,630		13.424762		1,324,084	1.34	%	2.53	%
2005	1.00	%	23,964		9.134532		218,900	1.34	%	2.33	%
2005	1.30	%	7,396		12.832801		94,911	1.34	%	2.02	%
2004	0.00	%	37,814		13.961156		527,927	1.23	%	7.47	%
2004	0.50	%	10,312		13.338990		137,552	1.23	%	6.93	%
2004	0.80	%	117,298		13.093387		1,535,828	1.23	%	6.61	%
2004	1.30	%	20,464		12.578597		257,408	1.23	%	6.08	%
Federated IS - American Leaders Fund II - Primary Class (FALF)
2008	0.50	%	8,553		9.864306		84,369	1.80	%	-34.12	%
2008	0.80	%	81		9.697968		786	1.80	%	-34.32	%
2007	0.50	%	7,374		14.973799		110,417	1.55	%	-10.12	%
2007	0.80	%	1,754		14.765636		25,899	1.55	%	-10.39	%
2006	0.00	%	406		16.967010		6,889	1.47	%	16.81	%
2006	0.50	%	10,000		16.659331		166,593	1.47	%	16.23	%
2006	0.80	%	1,782		16.477377		29,363	1.47	%	15.88	%
2005	0.00	%	362		14.525597		5,258	1.33	%	5.02	%
2005	0.50	%	6,978		14.333441		100,019	1.33	%	4.50	%
2005	0.80	%	5,150		14.219360		73,230	1.33	%	4.19	%
2004	0.00	%	306		13.830995		4,232	0.41	%	9.78	%

(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***		Initial Offering Date^
2004	0.50	%	2,628	$	13.716228	$	36,046	0.41	%	9.23	%
2004	0.80	%	5,782		13.647806		78,912	0.41	%	8.90	%
Federated IS - Capital Appreciation Fund II - Primary Class (FVCA2P)
2008	0.50	%	3,309		11.566132		38,272	0.21	%	-29.72	%
2008	0.80	%	627		11.371112		7,130	0.21	%	-29.93	%
2007	0.50	%	254		16.457068		4,180	0.71	%	9.33	%
2007	0.80	%	626		16.228297		10,159	0.71	%	9.00	%
2006	0.80	%	638		14.888388		9,499	0.79	%	15.29	%
2005	0.50	%	1,354		13.017510		17,626	1.07	%	1.41	%
2005	0.80	%	606		12.913893		7,826	1.07	%	1.10	%
2004	0.50	%	1,276		12.836844		16,380	0.28	%	6.86	%
2004	0.80	%	770		12.772814		9,835	0.28	%	6.54	%
Federated IS - Market Opportunity Fund II - Service Class (FVMOS)
2008	0.00	%	7,008		10.152569		71,149	1.51	%	-0.86	%
2008	0.50	%	15,633		10.017981		156,611	1.51	%	-1.36	%
2008	0.80	%	2,291		9.938077		22,768	1.51	%	-1.65	%
2007	0.50	%	246		10.155871		2,498	0.57	%	-1.98	%
2007	0.80	%	88		10.105146		889	0.57	%	-2.27	%
Federated IS - Quality Bond Fund II - Primary Class (FQB)
2008	0.00	%	22,443		12.052470		270,494	5.12	%	-7.29	%
2008	0.50	%	40,508		11.657260		472,212	5.12	%	-7.75	%
2008	0.80	%	16,052		11.426394		183,416	5.12	%	-8.03	%
2008	1.00	%	34,491		11.275015		388,887	5.12	%	-8.21	%
2007	0.00	%	17,856		12.999880		232,126	4.97	%	5.38	%
2007	0.50	%	26,966		12.636630		340,759	4.97	%	4.86	%
2007	0.80	%	22,236		12.423584		276,251	4.97	%	4.54	%
2007	1.00	%	32,494		12.283540		399,141	4.97	%	4.33	%
2006	0.00	%	19,464		12.335785		240,104	3.43	%	4.15	%
2006	0.50	%	24,568		12.051517		296,082	3.43	%	3.64	%
2006	0.80	%	39,918		11.884116		474,390	3.43	%	3.33	%
2006	1.00	%	29,734		11.773803		350,082	3.43	%	3.12	%
2005	0.00	%	19,802		11.843786		234,531	3.65	%	1.30	%
2005	0.50	%	16,246		11.628696		188,920	3.65	%	0.79	%
2005	0.80	%	60,574		11.501519		696,693	3.65	%	0.49	%
2005	1.00	%	4,004		11.417503		45,716	3.65	%	0.29	%
2005	1.30	%	296		11.292632		3,343	3.65	%	-0.01	%
2004	0.00	%	12,318		11.692084		144,023	4.98	%	3.62	%
2004	0.50	%	9,180		11.537144		105,911	4.98	%	3.10	%
2004	0.80	%	73,162		11.445157		837,351	4.98	%	2.79	%
2004	1.30	%	5,244		11.293463		59,223	4.98	%	2.28	%
Fidelity(R) VIP - Equity-Income Portfolio - Initial Class (FEIP)
2008	0.00	%	231,255		15.121228		3,496,860	2.40	%	-42.65	%
2008	0.50	%	576,617		39.190034		22,597,640	2.40	%	-42.94	%
2008	0.80	%	240,665		32.063918		7,716,663	2.40	%	-43.11	%
2008	1.00	%	419,968		8.139596		3,418,370	2.40	%	-43.23	%
2007	0.00	%	278,062		26.368140		7,331,978	1.77	%	1.53	%
2007	0.50	%	592,452		68.682638		40,691,166	1.77	%	1.02	%
2007	0.80	%	336,206		56.363167		18,949,635	1.77	%	0.72	%
2007	1.00	%	463,760		14.336823		6,648,845	1.77	%	0.51	%
2007	1.30	%	6		51.725856		310	1.77	%	0.21	%
2006	0.00	%	307,480		25.970609		7,985,443	3.30	%	20.19	%
2006	0.50	%	491,100		67.988158		33,388,984	3.30	%	19.60	%

(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***		Initial Offering Date^
2006	0.80	%	547,442	$	55.961825	$	30,635,853	3.30	%	19.24	%
2006	1.00	%	502,702		14.263392		7,170,236	3.30	%	19.00	%
2006	1.30	%	3,596		51.616411		185,613	3.30	%	18.65	%
2005	0.00	%	348,510		21.607366		7,530,383	1.64	%	5.87	%
2005	0.50	%	344,836		56.848284		19,603,335	1.64	%	5.34	%
2005	0.80	%	824,566		46.932598		38,699,025	1.64	%	5.02	%
2005	1.00	%	537,298		11.985917		6,440,009	1.64	%	4.81	%
2005	1.30	%	27,500		43.504590		1,196,376	1.64	%	4.50	%
2004	0.00	%	375,788		20.410267		7,669,933	1.56	%	11.53	%
2004	0.50	%	187,988		53.967094		10,145,166	1.56	%	10.97	%
2004	0.80	%	1,112,750		44.687399		49,725,903	1.56	%	10.64	%
2004	1.30	%	197,270		41.630375		8,212,424	1.56	%	10.09	%
Fidelity(R) VIP - Growth Portfolio - Initial Class (FGP)
2008	0.00	%	243,890		13.195602		3,218,275	0.79	%	-47.17	%
2008	0.50	%	596,470		40.678515		24,263,514	0.79	%	-47.43	%
2008	0.80	%	450,264		27.755083		12,497,115	0.79	%	-47.59	%
2008	1.00	%	692,175		4.839505		3,349,784	0.79	%	-47.69	%
2008	1.30	%	16		25.693435		411	0.79	%	-47.85	%
2007	0.00	%	275,376		24.975885		6,877,759	0.82	%	26.96	%
2007	0.50	%	622,446		77.381327		48,165,697	0.82	%	26.33	%
2007	0.80	%	558,044		52.956740		29,552,191	0.82	%	25.95	%
2007	1.00	%	773,552		9.252332		7,157,160	0.82	%	25.69	%
2007	1.30	%	144		49.269736		7,095	0.82	%	25.32	%
2006	0.00	%	294,384		19.671592		5,791,002	0.40	%	6.85	%
2006	0.50	%	528,784		61.254324		32,390,306	0.40	%	6.32	%
2006	0.80	%	830,726		42.046610		34,929,212	0.40	%	6.00	%
2006	1.00	%	747,634		7.360951		5,503,297	0.40	%	5.79	%
2006	1.30	%	3,826		39.316236		150,424	0.40	%	5.47	%
2005	0.00	%	341,122		18.410455		6,280,211	0.51	%	5.80	%
2005	0.50	%	390,486		57.613946		22,497,439	0.51	%	5.27	%
2005	0.80	%	1,251,056		39.666280		49,624,738	0.51	%	4.96	%
2005	1.00	%	746,748		6.958097		5,195,945	0.51	%	4.75	%
2005	1.30	%	34,904		37.275932		1,301,079	0.51	%	4.44	%
2004	0.00	%	365,242		17.401445		6,355,739	0.27	%	3.38	%
2004	0.50	%	263,644		54.728412		14,428,817	0.27	%	2.86	%
2004	0.80	%	1,643,610		37.792486		62,116,108	0.27	%	2.55	%
2004	1.30	%	195,692		35.692511		6,984,739	0.27	%	2.04	%
Fidelity(R) VIP - High Income Portfolio - Initial Class (FHIP)
2008	0.00	%	120,515		11.467804		1,382,042	8.25	%	-24.98	%
2008	0.50	%	231,676		24.293166		5,628,144	8.25	%	-25.36	%
2008	0.80	%	80,105		22.690582		1,817,629	8.25	%	-25.58	%
2008	1.00	%	165,861		8.865726		1,470,478	8.25	%	-25.73	%
2007	0.00	%	140,988		15.287268		2,155,321	7.41	%	2.79	%
2007	0.50	%	247,158		32.546729		8,044,184	7.41	%	2.27	%
2007	0.80	%	118,930		30.491108		3,626,307	7.41	%	1.96	%
2007	1.00	%	145,894		11.937443		1,741,601	7.41	%	1.76	%
2006	0.00	%	171,428		14.872903		2,549,632	7.80	%	11.24	%
2006	0.50	%	261,306		31.824106		8,315,830	7.80	%	10.68	%
2006	0.80	%	240,204		29.904168		7,183,101	7.80	%	10.35	%
2006	1.00	%	136,954		11.731213		1,606,637	7.80	%	10.13	%
2006	1.30	%	9,972		30.387910		303,028	7.80	%	9.80	%
2005	0.00	%	185,840		13.370516		2,484,777	16.14	%	2.70	%

(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***		Initial Offering Date^
2005	0.50	%	175,964	$	28.752380	$	5,059,384	16.14	%	2.19	%
2005	0.80	%	356,194		27.098684		9,652,389	16.14	%	1.88	%
2005	1.00	%	126,486		10.651851		1,347,310	16.14	%	1.68	%
2005	1.30	%	21,016		27.674631		581,610	16.14	%	1.38	%
2004	0.00	%	222,416		13.018901		2,895,612	8.82	%	9.59	%
2004	0.50	%	140,176		28.136168		3,944,015	8.82	%	9.05	%
2004	0.80	%	565,686		26.597360		15,045,754	8.82	%	8.72	%
2004	1.30	%	106,760		27.298414		2,914,379	8.82	%	8.18	%
Fidelity(R) VIP - High Income Portfolio - Initial Class R (FHIPR)
2008	0.00	%	18,296		7.429579		135,932	10.31	%	-24.88	%
2008	0.50	%	168,238		7.367822		1,239,548	10.31	%	-25.26	%
2008	0.80	%	53,080		7.331018		389,130	10.31	%	-25.48	%
2007	0.00	%	10,246		9.890596		101,339	11.21	%	-1.09	%	5/1/2007
2007	0.50	%	122,470		9.857586		1,207,259	11.21	%	-1.42	%	5/1/2007
2007	0.80	%	30,864		9.837843		303,635	11.21	%	-1.62	%	5/1/2007
Fidelity(R) VIP - Overseas Portfolio - Initial Class (FOP)
2008	0.00	%	56,196		14.688536		825,437	2.41	%	-43.80	%
2008	0.50	%	188,778		25.347887		4,785,123	2.41	%	-44.09	%
2008	0.80	%	57,353		19.168350		1,099,362	2.41	%	-44.25	%
2008	1.00	%	154,625		8.025502		1,240,943	2.41	%	-44.37	%
2007	0.00	%	74,300		26.138222		1,942,070	3.29	%	17.31	%
2007	0.50	%	220,112		45.333254		9,978,393	3.29	%	16.72	%
2007	0.80	%	85,536		34.384792		2,941,138	3.29	%	16.37	%
2007	1.00	%	169,320		14.425299		2,442,492	3.29	%	16.14	%
2007	1.30	%	2		30.061976		60	3.29	%	15.79	%
2006	0.00	%	89,902		22.280924		2,003,100	0.91	%	18.08	%
2006	0.50	%	218,334		38.837994		8,479,655	0.91	%	17.49	%
2006	0.80	%	153,216		29.547189		4,527,102	0.91	%	17.14	%
2006	1.00	%	180,844		12.420750		2,246,218	0.91	%	16.91	%
2006	1.30	%	782		25.962703		20,303	0.91	%	16.56	%
2005	0.00	%	101,850		18.869419		1,921,850	0.71	%	19.05	%
2005	0.50	%	187,952		33.055758		6,212,896	0.71	%	18.45	%
2005	0.80	%	287,574		25.223510		7,253,626	0.71	%	18.10	%
2005	1.00	%	162,770		10.624371		1,729,329	0.71	%	17.87	%
2005	1.30	%	5,672		22.274316		126,340	0.71	%	17.51	%
2004	0.00	%	112,550		15.850578		1,783,983	1.14	%	13.64	%
2004	0.50	%	160,928		27.905999		4,490,857	1.14	%	13.07	%
2004	0.80	%	498,640		21.357697		10,649,802	1.14	%	12.73	%
2004	1.30	%	95,424		18.954713		1,808,735	1.14	%	12.17	%
Fidelity(R) VIP - Overseas Portfolio - Service Class R (FOSR)
2008	0.00	%	43,474		9.699843		421,691	2.68	%	-43.88	%
2008	0.50	%	292,626		9.523623		2,786,860	2.68	%	-44.16	%
2008	0.80	%	68,191		9.419422		642,320	2.68	%	-44.33	%
2007	0.00	%	38,404		17.283296		663,748	3.21	%	17.23	%
2007	0.50	%	238,614		17.054609		4,069,468	3.21	%	16.64	%
2007	0.80	%	77,400		16.918813		1,309,516	3.21	%	16.29	%
2006	0.00	%	31,164		14.743687		459,472	0.77	%	17.95	%
2006	0.50	%	201,906		14.621895		2,952,248	0.77	%	17.36	%
2006	0.80	%	120,050		14.549286		1,746,642	0.77	%	17.01	%
2005	0.00	%	21,148		12.499996		264,350	0.00	%	25.00	%	5/2/2005
2005	0.50	%	108,508		12.458682		1,351,867	0.00	%	24.59	%	5/2/2005
2005	0.80	%	84,208		12.433969		1,047,040	0.00	%	24.34	%	5/2/2005

(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***		Initial Offering Date^
Fidelity(R) VIP II - Asset Manager Portfolio - Initial Class (FAMP)
2008	0.00	%	49,593	$	16.350697	$	810,880	2.55	%	-28.72	%
2008	0.50	%	271,683		28.521671		7,748,853	2.55	%	-29.07	%
2008	0.80	%	107,493		24.486999		2,632,181	2.55	%	-29.29	%
2008	1.00	%	212,470		8.865285		1,883,607	2.55	%	-29.43	%
2007	0.00	%	54,336		22.938056		1,246,362	6.08	%	15.50	%
2007	0.50	%	306,478		40.213337		12,324,503	6.08	%	14.92	%
2007	0.80	%	132,782		34.628652		4,598,062	6.08	%	14.58	%
2007	1.00	%	229,524		12.562122		2,883,308	6.08	%	14.35	%
2007	1.30	%	6		36.160198		217	6.08	%	14.00	%
2006	0.00	%	66,348		19.859153		1,317,615	2.71	%	7.32	%
2006	0.50	%	286,878		34.991020		10,038,154	2.71	%	6.78	%
2006	0.80	%	202,948		30.222570		6,133,610	2.71	%	6.46	%
2006	1.00	%	252,802		10.985811		2,777,235	2.71	%	6.25	%
2006	1.30	%	654		31.718247		20,744	2.71	%	5.93	%
2005	0.00	%	71,156		18.505123		1,316,751	2.76	%	4.04	%
2005	0.50	%	288,746		32.768260		9,461,704	2.76	%	3.53	%
2005	0.80	%	261,190		28.387536		7,414,541	2.76	%	3.22	%
2005	1.00	%	287,746		10.339381		2,975,116	2.76	%	3.01	%
2005	1.30	%	7,118		29.941319		213,122	2.76	%	2.70	%
2004	0.00	%	80,426		17.785832		1,430,443	2.76	%	5.47	%
2004	0.50	%	209,976		31.651957		6,646,151	2.76	%	4.94	%
2004	0.80	%	416,912		27.502617		11,466,171	2.76	%	4.63	%
2004	1.30	%	121,996		29.152937		3,556,542	2.76	%	4.11	%
Fidelity(R) VIP II - Contrafund(R) Portfolio - Initial Class (FCP)
2008	0.00	%	205,267		21.949689		4,505,547	0.95	%	-42.51	%
2008	0.50	%	1,037,409		24.355264		25,266,370	0.95	%	-42.80	%
2008	0.80	%	283,459		23.673901		6,710,580	0.95	%	-42.97	%
2008	1.00	%	288,102		8.965097		2,582,862	0.95	%	-43.09	%
2008	1.30	%	1		22.129119		22	0.95	%	-43.26	%
2007	0.00	%	224,578		38.182151		8,574,871	0.93	%	17.59	%
2007	0.50	%	1,000,686		42.579734		42,608,944	0.93	%	17.00	%
2007	0.80	%	469,988		41.513259		19,510,734	0.93	%	16.65	%
2007	1.00	%	346,744		15.752271		5,462,005	0.93	%	16.42	%
2007	1.30	%	348		38.999532		13,572	0.93	%	16.07	%
2006	0.00	%	244,798		32.470034		7,948,599	1.27	%	11.72	%
2006	0.50	%	755,746		36.392149		27,503,221	1.27	%	11.16	%
2006	0.80	%	854,560		35.587790		30,411,902	1.27	%	10.83	%
2006	1.00	%	364,854		13.531021		4,936,847	1.27	%	10.61	%
2006	1.30	%	3,016		33.601299		101,342	1.27	%	10.28	%
2005	0.00	%	264,040		29.064668		7,674,235	0.29	%	16.94	%
2005	0.50	%	418,680		32.738236		13,706,845	0.29	%	16.36	%
2005	0.80	%	1,315,976		32.110552		42,256,716	0.29	%	16.01	%
2005	1.00	%	210,686		12.233291		2,577,383	0.29	%	15.78	%
2005	1.30	%	72,552		30.469674		2,210,636	0.29	%	15.43	%
2004	0.00	%	258,620		24.855086		6,428,022	0.34	%	15.48	%
2004	0.50	%	222,346		28.136431		6,256,023	0.34	%	14.90	%
2004	0.80	%	1,547,972		27.679601		42,847,247	0.34	%	14.56	%
2004	1.30	%	167,594		26.396331		4,423,867	0.34	%	13.99	%

(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***		Initial Offering Date^
Fidelity(R) VIP II - Investment Grade Bond Portfolio - Service Class (FIGBS)
2008	0.00	%	35,155	$	11.430864	$	401,852	4.47	%	-3.35	%
2008	0.50	%	220,280		11.111478		2,447,636	4.47	%	-3.83	%
2008	0.80	%	24,200		10.924128		264,364	4.47	%	-4.12	%
2007	0.00	%	30,732		11.826500		363,452	4.06	%	4.21	%
2007	0.50	%	239,992		11.553678		2,772,790	4.06	%	3.69	%
2007	0.80	%	36,890		11.393001		420,288	4.06	%	3.38	%
2006	0.00	%	27,706		11.348586		314,424	3.27	%	4.30	%
2006	0.50	%	224,730		11.142647		2,504,087	3.27	%	3.78	%
2006	0.80	%	50,982		11.020863		561,866	3.27	%	3.47	%
2005	0.00	%	24,210		10.880732		263,423	1.67	%	2.08	%
2005	0.50	%	47,416		10.736671		509,090	1.67	%	1.57	%
2005	0.80	%	184,098		10.651144		1,960,854	1.67	%	1.27	%
2004	0.00	%	24,840		10.659014		264,770	1.88	%	4.32	%
2004	0.50	%	14,444		10.570462		152,680	1.88	%	3.80	%
2004	0.80	%	47,726		10.517675		501,967	1.88	%	3.49	%
Fidelity(R) VIP III - Growth Opportunities Portfolio - Initial Class (FGOP)
2008	0.00	%	43,142		7.022261		302,954	0.42	%	-55.02	%
2008	0.50	%	133,046		6.611121		879,583	0.42	%	-55.24	%
2008	0.80	%	101,332		6.406522		649,186	0.42	%	-55.38	%
2008	1.00	%	20,056		4.850665		97,285	0.42	%	-55.47	%
2007	0.00	%	45,896		15.610808		716,474	0.00	%	23.18	%
2007	0.50	%	94,062		14.770825		1,389,373	0.00	%	22.57	%
2007	0.80	%	156,642		14.356892		2,248,892	0.00	%	22.20	%
2007	1.00	%	12,236		10.892121		133,276	0.00	%	21.95	%
2006	0.00	%	47,470		12.672871		601,581	0.69	%	5.46	%
2006	0.50	%	47,778		12.051402		575,792	0.69	%	4.93	%
2006	0.80	%	228,606		11.749061		2,685,906	0.69	%	4.62	%
2006	1.00	%	10,970		8.931581		97,979	0.69	%	4.41	%
2005	0.00	%	52,346		12.017274		629,056	0.95	%	8.89	%
2005	0.50	%	36,764		11.485107		422,238	0.95	%	8.35	%
2005	0.80	%	267,592		11.230531		3,005,200	0.95	%	8.03	%
2005	1.00	%	11,798		8.554456		100,925	0.95	%	7.81	%
2005	1.30	%	844		10.765183		9,086	0.95	%	7.49	%
2004	0.00	%	61,482		11.036087		678,521	0.53	%	7.19	%
2004	0.50	%	38,174		10.600065		404,647	0.53	%	6.66	%
2004	0.80	%	304,964		10.396153		3,170,452	0.53	%	6.34	%
2004	1.30	%	18,258		10.015165		182,857	0.53	%	5.81	%
Fidelity(R) VIP III - Mid Cap Portfolio - Service Class (FMCS)
2008	0.00	%	26,488		16.339788		432,808	0.35	%	-39.51	%
2008	0.50	%	283,059		15.883241		4,495,894	0.35	%	-39.81	%
2008	0.80	%	65,092		15.615472		1,016,442	0.35	%	-39.99	%
2007	0.00	%	30,584		27.011367		826,116	0.70	%	15.49	%
2007	0.50	%	272,886		26.388591		7,201,077	0.70	%	14.91	%
2007	0.80	%	92,888		26.021877		2,417,120	0.70	%	14.56	%
2006	0.00	%	29,260		23.389128		684,366	0.25	%	12.59	%
2006	0.50	%	217,404		22.965001		4,992,683	0.25	%	12.03	%
2006	0.80	%	167,292		22.714275		3,799,916	0.25	%	11.70	%
2005	0.00	%	37,294		20.773676		774,733	0.00	%	18.20	%
2005	0.50	%	105,862		20.498936		2,170,058	0.00	%	17.62	%
2005	0.80	%	247,064		20.335877		5,024,263	0.00	%	17.26	%

(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***		Initial Offering Date^
2004	0.00	%	27,716	$	17.574515	$	487,095	0.00	%	24.77	%
2004	0.50	%	28,738		17.428707		500,866	0.00	%	24.15	%
2004	0.80	%	190,596		17.341823		3,305,282	0.00	%	23.78	%
Fidelity(R) VIP III - Value Strategies Portfolio - Service Class (FVSS)
2008	0.00	%	20,161		8.298533		167,307	0.65	%	-51.17	%
2008	0.50	%	42,082		8.026295		337,763	0.65	%	-51.42	%
2008	0.80	%	6,539		7.867248		51,444	0.65	%	-51.57	%
2008	1.00	%	10,445		7.762982		81,084	0.65	%	-51.66	%
2007	0.00	%	21,268		16.996302		361,477	0.83	%	5.60	%
2007	0.50	%	40,724		16.521474		672,821	0.83	%	5.07	%
2007	0.80	%	11,738		16.242952		190,660	0.83	%	4.75	%
2007	1.00	%	12,228		16.059906		196,381	0.83	%	4.54	%
2006	0.00	%	14,632		16.095011		235,502	0.41	%	16.20	%
2006	0.50	%	50,330		15.724226		791,400	0.41	%	15.62	%
2006	0.80	%	26,916		15.505844		417,355	0.41	%	15.27	%
2006	1.00	%	14,346		15.361961		220,383	0.41	%	15.04	%
2005	0.00	%	9,800		13.851491		135,745	0.00	%	2.55	%
2005	0.50	%	16,310		13.600017		221,816	0.00	%	2.04	%
2005	0.80	%	47,774		13.451310		642,623	0.00	%	1.74	%
2005	1.00	%	11,298		13.353090		150,863	0.00	%	1.54	%
2005	1.30	%	1,814		13.207092		23,958	0.00	%	1.23	%
2004	0.00	%	27,044		13.506506		365,270	0.00	%	13.99	%
2004	0.50	%	22,246		13.327560		296,485	0.00	%	13.42	%
2004	0.80	%	79,260		13.221316		1,047,922	0.00	%	13.08	%
2004	1.30	%	23,932		13.046144		312,220	0.00	%	12.52	%
Fidelity(R) VIP IV - Energy Portfolio - Service Class 2 (FNRS2)
2008	0.00	%	27,453		10.465765		287,317	0.00	%	-54.40	%
2008	0.50	%	197,262		10.275549		2,026,975	0.00	%	-54.63	%
2008	0.80	%	63,653		10.163079		646,910	0.00	%	-54.77	%
2007	0.00	%	27,034		22.953063		620,513	0.12	%	45.64	%
2007	0.50	%	214,326		22.649325		4,854,339	0.12	%	44.91	%
2007	0.80	%	71,504		22.469019		1,606,625	0.12	%	44.48	%
2006	0.00	%	28,390		15.759845		447,422	0.73	%	16.62	%
2006	0.50	%	115,990		15.629664		1,812,885	0.73	%	16.04	%
2006	0.80	%	110,500		15.552071		1,718,504	0.73	%	15.69	%
2005	0.00	%	11,834		13.514321		159,928	0.65	%	35.14	%	5/2/2005
2005	0.50	%	42,914		13.469693		578,038	0.65	%	34.70	%	5/2/2005
2005	0.80	%	82,484		13.442988		1,108,831	0.65	%	34.43	%	5/2/2005
Fidelity(R) VIP IV - Freedom Fund 2010 Portfolio - Service Class (FF10S)
2008	0.00	%	8,703		9.656832		84,043	2.31	%	-25.08	%
2008	0.50	%	52,567		9.481428		498,410	2.31	%	-25.45	%
2008	0.80	%	1,764		9.377717		16,542	2.31	%	-25.67	%
2007	0.00	%	4,590		12.888793		59,160	5.88	%	8.65	%
2007	0.50	%	71,358		12.718211		907,546	5.88	%	8.10	%
2007	0.80	%	4,636		12.616940		58,492	5.88	%	7.78	%
2006	0.00	%	8,244		11.863160		97,800	3.42	%	9.78	%
2006	0.50	%	1,822		11.765134		21,436	3.42	%	9.24	%
2006	0.80	%	9,704		11.706711		113,602	3.42	%	8.91	%
2005	0.00	%	2,002		10.806063		21,634	0.56	%	8.06	%	5/2/2005
2005	0.50	%	1,590		10.770315		17,125	0.56	%	7.70	%	5/2/2005
2005	0.80	%	2,332		10.748937		25,067	0.56	%	7.49	%	5/2/2005

(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***		Initial Offering Date^
Fidelity(R) VIP IV - Freedom Fund 2020 Portfolio - Service Class (FF20S)
2008	0.00	%	13,010	$	9.215628	$	119,895	2.88	%	-32.71	%
2008	0.50	%	54,125		9.048213		489,735	2.88	%	-33.05	%
2008	0.80	%	11,923		8.949218		106,702	2.88	%	-33.25	%
2007	0.00	%	8,938		13.695591		122,411	2.17	%	10.17	%
2007	0.50	%	38,608		13.514322		521,761	2.17	%	9.61	%
2007	0.80	%	10,358		13.406718		138,867	2.17	%	9.28	%
2006	0.00	%	7,022		12.431698		87,295	1.69	%	11.81	%
2006	0.50	%	6,200		12.328971		76,440	1.69	%	11.25	%
2006	0.80	%	16,066		12.267747		197,094	1.69	%	10.92	%
2005	0.00	%	5,140		11.118664		57,150	0.86	%	11.19	%	5/2/2005
2005	0.50	%	3,540		11.081899		39,230	0.86	%	10.82	%	5/2/2005
2005	0.80	%	15,234		11.059893		168,486	0.86	%	10.60	%	5/2/2005
Fidelity(R) VIP IV - Freedom Fund 2030 Portfolio - Service Class (FF30S)
2008	0.50	%	25,922		8.668038		224,693	2.06	%	-38.39	%
2008	0.80	%	24,051		8.573208		206,194	2.06	%	-38.57	%
2007	0.50	%	35,470		14.068082		498,995	2.76	%	10.65	%
2007	0.80	%	13,868		13.956079		193,543	2.76	%	10.32	%
2006	0.50	%	17,674		12.713976		224,707	5.31	%	12.59	%
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	%	5/2/2005
Franklin Templeton VIP - Developing Markets Securities Fund - Class 3 (FTVDM3)
2008	0.00	%	4,930		9.996007		49,280	2.79	%	-52.67	%
2008	0.50	%	63,172		9.814382		619,994	2.79	%	-52.91	%
2008	0.80	%	15,652		9.707016		151,934	2.79	%	-53.05	%
2007	0.00	%	12,404		21.120230		261,975	2.20	%	28.70	%
2007	0.50	%	102,474		20.840783		2,135,638	2.20	%	28.05	%
2007	0.80	%	31,074		20.674924		642,453	2.20	%	27.67	%
2006	0.00	%	13,590		16.410826		223,023	1.19	%	28.17	%
2006	0.50	%	47,562		16.275260		774,084	1.19	%	27.53	%
2006	0.80	%	41,104		16.194484		665,658	1.19	%	27.15	%
2005	0.00	%	14,152		12.804274		181,206	0.53	%	28.04	%	5/2/2005
2005	0.50	%	17,310		12.761961		220,910	0.53	%	27.62	%	5/2/2005
2005	0.80	%	18,806		12.736654		239,526	0.53	%	27.37	%	5/2/2005
Franklin Templeton VIP - Foreign Securities Fund - Class 1 (TIF)
2008	0.00	%	1,659		14.675305		24,346	2.70	%	-40.23	%
2008	0.50	%	22,899		14.265245		326,660	2.70	%	-40.53	%
2008	0.80	%	1,945		14.024745		27,278	2.70	%	-40.71	%
2007	0.00	%	5,050		24.554735		124,001	2.23	%	15.79	%
2007	0.50	%	21,480		23.988549		515,274	2.23	%	15.21	%
2007	0.80	%	7,764		23.655125		183,658	2.23	%	14.86	%
2006	0.00	%	6,940		21.206570		147,174	1.41	%	21.70	%
2006	0.50	%	26,826		20.821962		558,570	1.41	%	21.09	%
2006	0.80	%	20,280		20.594561		417,658	1.41	%	20.73	%
2005	0.00	%	8,296		17.425708		144,564	1.37	%	10.48	%
2005	0.50	%	26,236		17.195159		451,132	1.37	%	9.93	%
2005	0.80	%	46,522		17.058302		793,586	1.37	%	9.60	%
2004	0.00	%	25,722		15.773327		405,722	1.10	%	18.87	%
2004	0.50	%	10,062		15.642411		157,394	1.10	%	18.28	%
2004	0.80	%	64,070		15.564386		997,210	1.10	%	17.93	%

(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***		Initial Offering Date^
Franklin Templeton VIP - Foreign Securities Fund - Class 3 (TIF3)
2008	0.00	%	25,525	$	9.435374	$	240,838	2.47	%	-40.39	%
2008	0.50	%	112,327		9.263979		1,040,595	2.47	%	-40.69	%
2008	0.80	%	16,543		9.162606		151,577	2.47	%	-40.87	%
2007	0.00	%	29,610		15.828965		468,696	2.03	%	15.45	%
2007	0.50	%	118,810		15.619506		1,855,754	2.03	%	14.87	%
2007	0.80	%	25,180		15.495120		390,167	2.03	%	14.52	%
2006	0.00	%	28,060		13.711150		384,735	1.38	%	21.46	%
2006	0.50	%	54,682		13.597883		743,559	1.38	%	20.86	%
2006	0.80	%	35,494		13.530342		480,246	1.38	%	20.50	%
2005	0.00	%	21,384		11.288544		241,394	0.39	%	12.89	%	5/2/2005
2005	0.50	%	21,078		11.251218		237,153	0.39	%	12.51	%	5/2/2005
2005	0.80	%	19,372		11.228867		217,526	0.39	%	12.29	%	5/2/2005
Franklin Templeton VIP - Founding Funds Allocation Fund - Class 2 (FTVFA2)
2008	0.50	%	1,402		6.633927		9,301	7.17	%	-33.66	%	5/1/2008
2008	0.80	%	149		6.620645		986	7.17	%	-33.79	%	5/1/2008
Franklin Templeton VIP - Global Income Securities Fund - Class 3 (FTVGI3)
2008	0.00	%	19,081		13.148675		250,890	4.26	%	6.21	%
2008	0.50	%	169,130		12.909918		2,183,454	4.26	%	5.68	%
2008	0.80	%	19,316		12.768726		246,641	4.26	%	5.36	%
2007	0.00	%	12,206		12.380292		151,114	2.64	%	11.03	%
2007	0.50	%	120,218		12.216405		1,468,632	2.64	%	10.48	%
2007	0.80	%	9,674		12.119103		117,240	2.64	%	10.14	%
2006	0.00	%	1,668		11.150160		18,598	2.45	%	12.84	%
2006	0.50	%	14,172		11.057995		156,714	2.45	%	12.28	%
2006	0.80	%	19,066		11.003055		209,784	2.45	%	11.95	%
2005	0.00	%	1,034		9.881172		10,217	7.95	%	-1.19	%	5/2/2005
2005	0.50	%	2,394		9.848458		23,577	7.95	%	-1.52	%	5/2/2005
2005	0.80	%	2,864		9.828879		28,150	7.95	%	-1.71	%	5/2/2005
Franklin Templeton VIP - Income Securities Fund - Class 2 (FTVIS2)
2008	0.00	%	5,556		8.186428		45,484	5.40	%	-29.66	%
2008	0.50	%	70,902		8.077889		572,738	5.40	%	-30.01	%
2008	0.80	%	14,877		8.013465		119,216	5.40	%	-30.22	%
2007	0.00	%	11,684		11.637657		135,974	3.26	%	3.76	%
2007	0.50	%	81,232		11.541005		937,499	3.26	%	3.24	%
2007	0.80	%	16,636		11.483411		191,038	3.26	%	2.93	%
2006	0.00	%	7,444		11.216304		83,494	0.00	%	12.16	%	5/1/2006
2006	0.50	%	8,720		11.179202		97,483	0.00	%	11.79	%	5/1/2006
2006	0.80	%	13,168		11.157005		146,915	0.00	%	11.57	%	5/1/2006
Franklin Templeton VIP - Rising Dividends Securities Fund - Class 1 (FTVRDI)
2008	0.00	%	20,335		11.884088		241,663	2.04	%	-26.94	%
2008	0.50	%	189,411		11.551986		2,188,073	2.04	%	-27.31	%
2008	0.80	%	40,517		11.357193		460,159	2.04	%	-27.53	%
2007	0.00	%	26,128		16.266644		425,015	2.53	%	-2.41	%
2007	0.50	%	167,510		15.891491		2,661,984	2.53	%	-2.90	%
2007	0.80	%	61,684		15.670578		966,624	2.53	%	-3.20	%
2006	0.00	%	23,316		16.669002		388,654	1.22	%	17.43	%
2006	0.50	%	137,920		16.366662		2,257,290	1.22	%	16.84	%
2006	0.80	%	112,826		16.187918		1,826,418	1.22	%	16.50	%
2005	0.00	%	20,818		14.195085		295,513	1.09	%	3.68	%
2005	0.50	%	76,976		14.007257		1,078,223	1.09	%	3.17	%
2005	0.80	%	136,502		13.895780		1,896,802	1.09	%	2.86	%

(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***		Initial Offering Date^
2004	0.00	%	30,080	$	13.690957	$	411,824	0.66	%	11.25	%
2004	0.50	%	45,226		13.577316		614,048	0.66	%	10.70	%
2004	0.80	%	110,404		13.509605		1,491,514	0.66	%	10.36	%
Franklin Templeton VIP - Small Cap Value Securities Fund - Class 1 (FTVSVI)
2008	0.00	%	6,079		13.921598		84,629	1.44	%	-32.87	%
2008	0.50	%	125,323		13.532546		1,695,939	1.44	%	-33.21	%
2008	0.80	%	28,885		13.304370		384,297	1.44	%	-33.41	%
2007	0.00	%	7,310		20.738061		151,595	0.88	%	-2.14	%
2007	0.50	%	109,944		20.259847		2,227,449	0.88	%	-2.63	%
2007	0.80	%	37,560		19.978249		750,383	0.88	%	-2.92	%
2006	0.00	%	9,688		21.190555		205,294	0.82	%	17.30	%
2006	0.50	%	98,784		20.806303		2,055,330	0.82	%	16.72	%
2006	0.80	%	58,816		20.579116		1,210,381	0.82	%	16.37	%
2005	0.00	%	8,690		18.064784		156,983	0.91	%	8.99	%
2005	0.50	%	47,146		17.825857		840,418	0.91	%	8.45	%
2005	0.80	%	114,196		17.684023		2,019,445	0.91	%	8.12	%
2004	0.00	%	7,248		16.575156		120,137	0.19	%	24.09	%
2004	0.50	%	20,500		16.437638		336,972	0.19	%	23.47	%
2004	0.80	%	87,470		16.355679		1,430,631	0.19	%	23.10	%
Gartmore GVIT - Small Cap Growth Fund: Class I - Initial Funding by the Company (SCGFSD)
2006	0.00	%	23,198		8.204136		190,320	0.00	%	3.21	%
2006	0.50	%	68,500		7.935212		543,562	0.00	%	2.69	%
2006	0.80	%	62,918		7.778128		489,384	0.00	%	2.39	%
2006	1.00	%	24,648		7.684584		189,410	0.00	%	2.18	%
2005	0.00	%	18,340		7.949160		145,788	0.00	%	8.09	%
2005	0.50	%	36,714		7.727049		283,691	0.00	%	7.55	%
2005	0.80	%	96,746		7.596795		734,960	0.00	%	7.23	%
2005	1.00	%	9,740		7.520431		73,249	0.00	%	7.02	%
2005	1.30	%	3,160		7.384553		23,335	0.00	%	6.70	%
2004	0.00	%	38,172		7.354229		280,726	0.00	%	13.42	%
2004	0.50	%	32,220		7.184440		231,483	0.00	%	12.85	%
2004	0.80	%	168,182		7.084474		1,191,481	0.00	%	12.51	%
2004	1.30	%	27,028		6.920939		187,059	0.00	%	11.95	%
Janus Aspen Series - Balanced Portfolio - Service Class (JABS)
2008	0.00	%	1,888		13.145664		24,819	2.61	%	-16.06	%
2008	0.50	%	29,964		12.778352		382,891	2.61	%	-16.48	%
2008	0.80	%	3,187		12.562910		40,038	2.61	%	-16.73	%
2007	0.00	%	624		15.660699		9,772	1.92	%	10.29	%
2007	0.50	%	13,348		15.299488		204,218	1.92	%	9.73	%
2007	0.80	%	3,168		15.086774		47,795	1.92	%	9.40	%
2006	0.00	%	4,932		14.199918		70,034	1.96	%	10.41	%
2006	0.50	%	9,396		13.942298		131,002	1.96	%	9.87	%
2006	0.80	%	5,148		13.789981		70,991	1.96	%	9.54	%
2005	0.00	%	5,050		12.860543		64,946	2.56	%	7.66	%
2005	0.50	%	1,282		12.690331		16,269	2.56	%	7.13	%
2005	0.80	%	11,204		12.589281		141,050	2.56	%	6.81	%
2004	0.00	%	668		11.945467		7,980	3.27	%	8.29	%
2004	0.50	%	730		11.846263		8,648	3.27	%	7.75	%
2004	0.80	%	6,582		11.787133		77,583	3.27	%	7.43	%
Janus Aspen Series - Forty Portfolio - Service Class (JACAS)
2008	0.00	%	66,848		6.911095		461,993	0.01	%	-44.31	%
2008	0.50	%	285,769		6.617843		1,891,174	0.01	%	-44.59	%

(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***		Initial Offering Date^
2008	0.80	%	70,867	$	6.447916	$	456,944	0.01	%	-44.75	%
2008	1.00	%	25,926		6.617584		171,567	0.01	%	-44.86	%
2007	0.00	%	51,646		12.409688		640,911	0.19	%	36.63	%
2007	0.50	%	198,870		11.942871		2,375,079	0.19	%	35.95	%
2007	0.80	%	84,802		11.671311		989,751	0.19	%	35.54	%
2007	1.00	%	22,756		12.002478		273,128	0.19	%	35.27	%
2006	0.00	%	29,426		9.082400		267,259	0.14	%	9.12	%
2006	0.50	%	81,402		8.784776		715,098	0.14	%	8.57	%
2006	0.80	%	164,548		8.610938		1,416,913	0.14	%	8.25	%
2006	1.00	%	9,930		8.873089		88,110	0.14	%	8.03	%
2005	0.00	%	51,138		8.323593		425,652	0.01	%	12.56	%
2005	0.50	%	44,888		8.091082		363,192	0.01	%	12.00	%
2005	0.80	%	225,546		7.954734		1,794,158	0.01	%	11.66	%
2005	1.00	%	8,522		8.213276		69,994	0.01	%	11.44	%
2005	1.30	%	1,398		7.732522		10,810	0.01	%	11.11	%
2004	0.00	%	46,432		7.395085		343,369	0.02	%	17.97	%
2004	0.50	%	23,622		7.224414		170,655	0.02	%	17.38	%
2004	0.80	%	271,392		7.123936		1,933,379	0.02	%	17.03	%
2004	1.30	%	10,144		6.959531		70,597	0.02	%	16.44	%
Janus Aspen Series - Global Technology Portfolio - Service Class (JAGTS)
2008	0.00	%	53,775		3.032378		163,066	0.09	%	-43.97	%
2008	0.50	%	125,263		2.903630		363,717	0.09	%	-44.25	%
2008	0.80	%	36,446		2.829026		103,107	0.09	%	-44.42	%
2008	1.00	%	14,544		2.914815		42,393	0.09	%	-44.53	%
2007	0.00	%	53,308		5.412137		288,510	0.37	%	21.70	%
2007	0.50	%	126,802		5.208409		660,437	0.37	%	21.09	%
2007	0.80	%	63,600		5.089898		323,718	0.37	%	20.72	%
2007	1.00	%	21,732		5.254782		114,197	0.37	%	20.48	%
2006	0.00	%	47,252		4.447186		210,138	0.00	%	7.83	%
2006	0.50	%	75,318		4.301344		323,969	0.00	%	7.29	%
2006	0.80	%	109,934		4.216170		463,500	0.00	%	6.97	%
2006	1.00	%	17,218		4.361506		75,096	0.00	%	6.76	%
2005	0.00	%	48,024		4.124323		198,066	0.00	%	11.55	%
2005	0.50	%	36,250		4.009018		145,327	0.00	%	10.99	%
2005	0.80	%	195,006		3.941403		768,597	0.00	%	10.66	%
2005	1.00	%	17,522		4.085406		71,584	0.00	%	10.44	%
2004	0.00	%	46,310		3.697308		171,222	0.00	%	0.57	%
2004	0.50	%	16,918		3.611898		61,106	0.00	%	0.06	%
2004	0.80	%	234,210		3.561614		834,166	0.00	%	-0.23	%
2004	1.30	%	21,408		3.479325		74,485	0.00	%	-0.73	%
Janus Aspen Series - INTECH Risk Managed Core Portfolio - Service Class (JARLCS)
2008	0.00	%	975		12.013653		11,713	0.70	%	-36.24	%
2008	0.50	%	5,976		11.677947		69,787	0.70	%	-36.56	%
2008	0.80	%	1,353		11.481055		15,534	0.70	%	-36.75	%
2007	0.00	%	848		18.842190		15,978	0.36	%	6.13	%
2007	0.50	%	5,388		18.407712		99,181	0.36	%	5.60	%
2007	0.80	%	1,936		18.151877		35,142	0.36	%	5.28	%
2006	0.00	%	2,146		17.753498		38,099	0.10	%	10.77	%
2006	0.50	%	5,540		17.431528		96,571	0.10	%	10.22	%
2006	0.80	%	3,660		17.241178		63,103	0.10	%	9.89	%
2005	0.00	%	1,406		16.027544		22,535	1.43	%	10.91	%
2005	0.50	%	3,292		15.815517		52,065	1.43	%	10.36	%

(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***		Initial Offering Date^
2005	0.80	%	11,304	$	15.689665	$	177,356	1.43	%	10.03	%
2004	0.50	%	2,006		14.330811		28,748	2.29	%	16.88	%
2004	0.80	%	4,180		14.259340		59,604	2.29	%	16.53	%
Janus Aspen Series - International Growth Portfolio - Service Class (JAIGS)
2008	0.00	%	64,411		8.539839		550,060	2.75	%	-52.23	%
2008	0.50	%	100,327		8.177488		820,423	2.75	%	-52.47	%
2008	0.80	%	34,313		7.967521		273,390	2.75	%	-52.61	%
2008	1.00	%	33,535		8.611907		288,800	2.75	%	-52.71	%
2007	0.00	%	65,132		17.876194		1,164,312	0.43	%	28.02	%
2007	0.50	%	103,560		17.203858		1,781,632	0.43	%	27.38	%
2007	0.80	%	63,014		16.812702		1,059,436	0.43	%	26.99	%
2007	1.00	%	47,972		18.208982		873,521	0.43	%	26.74	%
2006	0.00	%	53,060		13.963792		740,919	1.92	%	46.63	%
2006	0.50	%	107,512		13.506291		1,452,088	1.92	%	45.90	%
2006	0.80	%	110,056		13.239048		1,457,037	1.92	%	45.46	%
2006	1.00	%	109,880		14.367390		1,578,689	1.92	%	45.17	%
2005	0.00	%	38,214		9.523236		363,921	1.14	%	31.94	%
2005	0.50	%	62,034		9.257232		574,263	1.14	%	31.28	%
2005	0.80	%	171,522		9.101228		1,561,061	1.14	%	30.89	%
2005	1.00	%	35,600		9.896611		352,319	1.14	%	30.63	%
2005	1.30	%	5,076		8.846998		44,907	1.14	%	30.24	%
2004	0.00	%	47,840		7.217918		345,305	0.83	%	18.69	%
2004	0.50	%	11,248		7.051335		79,313	0.83	%	18.09	%
2004	0.80	%	166,012		6.953243		1,154,322	0.83	%	17.74	%
2004	1.30	%	29,924		6.792762		203,267	0.83	%	17.15	%
Janus Aspen Series - International Growth Portfolio - Service II Class (JAIGS2)
2008	0.00	%	13,505		7.117893		96,127	2.89	%	-52.21	%
2008	0.50	%	335,798		7.023415		2,358,449	2.89	%	-52.45	%
2008	0.80	%	67,272		6.967336		468,707	2.89	%	-52.59	%
2007	0.00	%	20,534		14.893765		305,829	0.50	%	28.07	%
2007	0.50	%	326,560		14.770042		4,823,305	0.50	%	27.43	%
2007	0.80	%	79,558		14.696304		1,169,209	0.50	%	27.05	%
2006	0.00	%	26,134		11.629148		303,916	1.97	%	16.29	%	5/1/2006
2006	0.50	%	121,018		11.590627		1,402,674	1.97	%	15.91	%	5/1/2006
2006	0.80	%	102,986		11.567583		1,191,299	1.97	%	15.68	%	5/1/2006
Lehman Brothers AMT - Short Duration Bond Portfolio - I Class (AMTB)
2008	0.00	%	42,417		14.346598		608,540	4.47	%	-13.43	%
2008	0.50	%	68,340		21.078952		1,440,536	4.47	%	-13.86	%
2008	0.80	%	18,838		16.857653		317,564	4.47	%	-14.12	%
2008	1.00	%	37,893		10.693363		405,204	4.47	%	-14.29	%
2007	0.00	%	47,302		16.571972		783,887	2.65	%	4.77	%
2007	0.50	%	68,620		24.470719		1,679,181	2.65	%	4.25	%
2007	0.80	%	30,596		19.629002		600,569	2.65	%	3.93	%
2007	1.00	%	47,540		12.476258		593,121	2.65	%	3.72	%
2006	0.00	%	50,648		15.817282		801,114	3.06	%	4.20	%
2006	0.50	%	55,674		23.474013		1,306,892	3.06	%	3.68	%
2006	0.80	%	50,380		18.886370		951,495	3.06	%	3.37	%
2006	1.00	%	58,744		12.028394		706,596	3.06	%	3.17	%
2006	1.30	%	492		18.678278		9,190	3.06	%	2.86	%
2005	0.00	%	52,164		15.179497		791,823	2.61	%	1.44	%
2005	0.50	%	38,328		22.640077		867,749	2.61	%	0.94	%
2005	0.80	%	93,430		18.269985		1,706,965	2.61	%	0.64	%

(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***		Initial Offering Date^
2005	1.00	%	47,674	$	11.659063	$	555,834	2.61	%	0.44	%
2005	1.30	%	3,662		18.158987		66,498	2.61	%	0.14	%
2004	0.00	%	57,882		14.963540		866,120	3.64	%	0.78	%
2004	0.50	%	37,986		22.429536		852,008	3.64	%	0.28	%
2004	0.80	%	165,170		18.154314		2,998,548	3.64	%	-0.02	%
2004	1.30	%	43,950		18.134220		796,999	3.64	%	-0.52	%
MFS(R) VIT - Investors Growth Stock Series - Initial Class (MIGIC)
2008	0.00	%	784		10.006089		7,845	0.56	%	-36.87	%
2008	0.50	%	10,324		9.726449		100,416	0.56	%	-37.19	%
2008	0.80	%	4,133		9.562409		39,521	0.56	%	-37.38	%
2007	0.00	%	760		15.850552		12,046	0.34	%	11.36	%
2007	0.50	%	10,876		15.485007		168,415	0.34	%	10.80	%
2007	0.80	%	3,892		15.269711		59,430	0.34	%	10.47	%
2006	0.00	%	804		14.233850		11,444	0.00	%	7.58	%
2006	0.50	%	9,652		13.975658		134,893	0.00	%	7.04	%
2006	0.80	%	9,996		13.822967		138,174	0.00	%	6.72	%
2005	0.00	%	704		13.231476		9,315	0.38	%	4.49	%
2005	0.50	%	9,568		13.056404		124,924	0.38	%	3.97	%
2005	0.80	%	13,712		12.952455		177,604	0.38	%	3.66	%
2004	0.00	%	1,058		12.663111		13,398	0.00	%	9.18	%
2004	0.50	%	4,150		12.557998		52,116	0.00	%	8.64	%
2004	0.80	%	15,444		12.495325		192,978	0.00	%	8.32	%
MFS(R) VIT - Value Series - Initial Class (MVFIC)
2008	0.00	%	10,025		13.356934		133,903	0.99	%	-32.58	%
2008	0.50	%	98,196		12.983695		1,274,947	0.99	%	-32.92	%
2008	0.80	%	8,253		12.764787		105,348	0.99	%	-33.12	%
2007	0.00	%	9,498		19.812092		188,175	0.91	%	7.91	%
2007	0.50	%	49,510		19.355242		958,278	0.91	%	7.37	%
2007	0.80	%	9,924		19.086229		189,412	0.91	%	7.04	%
2006	0.00	%	6,766		18.360218		124,225	0.80	%	20.84	%
2006	0.50	%	22,532		18.027234		406,190	0.80	%	20.24	%
2006	0.80	%	23,056		17.830357		411,097	0.80	%	19.88	%
2005	0.00	%	2,450		15.193770		37,225	0.65	%	6.66	%
2005	0.50	%	8,422		14.992740		126,269	0.65	%	6.13	%
2005	0.80	%	12,536		14.873414		186,453	0.65	%	5.81	%
2004	0.00	%	2,060		14.245099		29,345	0.34	%	15.18	%
2004	0.50	%	1,594		14.126859		22,518	0.34	%	14.60	%
2004	0.80	%	9,316		14.056392		130,949	0.34	%	14.26	%
Nationwide VIT - American Funds Asset Allocation Fund - Class II (GVAAA2)
2008	0.00	%	17,836		7.868935		140,350	2.61	%	-29.78	%
2008	0.50	%	90,933		7.764576		706,056	2.61	%	-30.13	%
2008	0.80	%	11,719		7.702635		90,267	2.61	%	-30.34	%
2007	0.00	%	18,106		11.205324		202,884	2.56	%	6.14	%
2007	0.50	%	52,982		11.112234		588,748	2.56	%	5.61	%
2007	0.80	%	17,818		11.056758		197,009	2.56	%	5.29	%
2006	0.00	%	9,828		10.556998		103,754	3.56	%	5.57	%	5/1/2006
2006	0.50	%	2,762		10.522054		29,062	3.56	%	5.22	%	5/1/2006
2006	0.80	%	23,042		10.501149		241,967	3.56	%	5.01	%	5/1/2006
Nationwide VIT - American Funds Bond Fund - Class II (GVABD2)
2008	0.00	%	6,155		9.781713		60,206	5.27	%	-9.87	%
2008	0.50	%	104,841		9.652092		1,011,935	5.27	%	-10.32	%
2008	0.80	%	9,151		9.575122		87,622	5.27	%	-10.59	%

(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***		Initial Offering Date^
2007	0.00	%	6,166	$	10.853118	$	66,920	8.87	%	2.98	%
2007	0.50	%	70,206		10.762995		755,627	8.87	%	2.47	%
2007	0.80	%	7,668		10.709255		82,119	8.87	%	2.16	%
2006	0.50	%	22,766		10.504005		239,134	0.05	%	5.04	%	5/1/2006
2006	0.80	%	11,396		10.483128		119,466	0.05	%	4.83	%	5/1/2006
Nationwide VIT - American Funds Global Growth Fund - Class II (GVAGG2)
2008	0.00	%	9,676		7.608765		73,622	2.74	%	-38.64	%
2008	0.50	%	112,338		7.507854		843,417	2.74	%	-38.94	%
2008	0.80	%	21,120		7.447945		157,301	2.74	%	-39.13	%
2007	0.00	%	8,996		12.399481		111,546	2.69	%	14.36	%
2007	0.50	%	88,882		12.296498		1,092,937	2.69	%	13.79	%
2007	0.80	%	23,258		12.235118		284,564	2.69	%	13.45	%
2006	0.00	%	2,236		10.842096		24,243	0.07	%	8.42	%	5/1/2006
2006	0.50	%	64,864		10.806217		700,934	0.07	%	8.06	%	5/1/2006
2006	0.80	%	15,330		10.784738		165,330	0.07	%	7.85	%	5/1/2006
Nationwide VIT - American Funds Growth Fund - Class II (GVAGR2)
2008	0.00	%	4,646		6.470039		30,060	2.07	%	-44.21	%
2008	0.50	%	139,829		6.384181		892,694	2.07	%	-44.49	%
2008	0.80	%	28,066		6.333211		177,748	2.07	%	-44.66	%
2007	0.00	%	4,432		11.597638		51,401	0.68	%	11.90	%
2007	0.50	%	107,408		11.501279		1,235,329	0.68	%	11.34	%
2007	0.80	%	27,580		11.443839		315,621	0.68	%	11.00	%
2006	0.00	%	288		10.364424		2,985	1.29	%	3.64	%	5/1/2006
2006	0.50	%	44,756		10.330117		462,335	1.29	%	3.30	%	5/1/2006
2006	0.80	%	17,582		10.309581		181,263	1.29	%	3.10	%	5/1/2006
Nationwide VIT - American Funds Growth-Income Fund - Class II (GVAGI2)
2008	0.00	%	2,747		6.126963		16,831	2.44	%	-38.06	%
2008	0.50	%	89,642		6.075985		544,663	2.44	%	-38.37	%
2008	0.80	%	3,255		6.045597		19,678	2.44	%	-38.56	%
2007	0.50	%	34,752		9.859308		342,631	3.27	%	-1.41	%	5/1/2007
2007	0.80	%	1,646		9.839552		16,196	3.27	%	-1.60	%	5/1/2007
Nationwide VIT - Cardinal Aggressive Fund - Class I (NVCRA1)
2008	0.50	%	14,331		6.394590		91,641	2.22	%	-36.05	%	5/1/2008
2008	0.80	%	5,228		6.381765		33,364	2.22	%	-36.18	%	5/1/2008
Nationwide VIT - Cardinal Balanced Fund - Class I (NVCRB1)
2008	0.50	%	10,972		7.975427		87,506	0.89	%	-20.25	%	5/1/2008
2008	0.80	%	2,267		7.959456		18,044	0.89	%	-20.41	%	5/1/2008
Nationwide VIT - Cardinal Capital Appreciation Fund - Class I (NVCCA1)
2008	0.50	%	15,452		7.239333		111,862	1.66	%	-27.61	%	5/1/2008
2008	0.80	%	4,329		7.224834		31,276	1.66	%	-27.75	%	5/1/2008
Nationwide VIT - Cardinal Conservative Fund - Class I (NVCCN1)
2008	0.00	%	288		9.142885		2,633	1.89	%	-8.57	%	5/1/2008
2008	0.50	%	3,870		9.112447		35,265	1.89	%	-8.88	%	5/1/2008
2008	0.80	%	1,287		9.094234		11,704	1.89	%	-9.06	%	5/1/2008
Nationwide VIT - Cardinal Moderate Fund - Class I (NVCMD1)
2008	0.00	%	6,475		7.626933		49,384	1.65	%	-23.73	%	5/1/2008
2008	0.50	%	36,096		7.601493		274,383	1.65	%	-23.99	%	5/1/2008
2008	0.80	%	7,019		7.586279		53,248	1.65	%	-24.14	%	5/1/2008
Nationwide VIT - Cardinal Moderately Aggressive Fund - Class I (NVCMA1)
2008	0.50	%	3,677		6.873896		25,275	1.88	%	-31.26	%	5/1/2008
2008	0.80	%	8,701		6.860115		59,690	1.88	%	-31.40	%	5/1/2008

(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***		Initial Offering Date^
Nationwide VIT - Cardinal Moderately Conservative Fund - Class I (NVCMC1)
2008	0.50	%	6,389	$	8.348025	$	53,336	2.83	%	-16.52	%	5/1/2008
2008	0.80	%	1,384		8.331322		11,531	2.83	%	-16.69	%	5/1/2008
Nationwide VIT - Core Bond Fund - Class I (NVCBD1)
2008	0.50	%	1,649		9.912085		16,345	2.32	%	-0.88	%	5/1/2008
Nationwide VIT - Federated High Income Bond Fund - Class I (HIBF)
2008	0.00	%	5,154		10.294917		53,060	8.80	%	-27.99	%
2008	0.50	%	4,252		10.007295		42,551	8.80	%	-28.35	%
2008	0.80	%	1,761		9.838552		17,326	8.80	%	-28.56	%
2007	0.00	%	5,886		14.296317		84,148	7.20	%	3.13	%
2007	0.50	%	5,162		13.966626		72,096	7.20	%	2.62	%
2007	0.80	%	3,306		13.772430		45,532	7.20	%	2.31	%
2006	0.00	%	6,018		13.861826		83,420	7.10	%	10.60	%
2006	0.50	%	4,224		13.610399		57,490	7.10	%	10.05	%
2006	0.80	%	8,630		13.461693		116,174	7.10	%	9.72	%
2005	0.00	%	8,510		12.532998		106,656	6.81	%	2.38	%
2005	0.50	%	4,370		12.367140		54,044	6.81	%	1.87	%
2005	0.80	%	15,130		12.268656		185,625	6.81	%	1.57	%
2004	0.00	%	7,390		12.241616		90,466	8.50	%	10.10	%
2004	0.50	%	25,084		12.139983		304,519	8.50	%	9.55	%
2004	0.80	%	29,550		12.079399		356,946	8.50	%	9.22	%
Nationwide VIT - Federated High Income Bond Fund - Class III (HIBF3)
2008	0.00	%	12,655		8.647843		109,438	9.56	%	-28.10	%
2008	0.50	%	59,880		8.490785		508,428	9.56	%	-28.46	%
2008	0.80	%	10,421		8.397926		87,515	9.56	%	-28.67	%
2007	0.00	%	9,004		12.027193		108,293	8.02	%	3.17	%
2007	0.50	%	35,436		11.868017		420,555	8.02	%	2.65	%
2007	0.80	%	11,368		11.773527		133,841	8.02	%	2.34	%
2006	0.00	%	4,016		11.657910		46,818	7.03	%	10.60	%
2006	0.50	%	13,398		11.561576		154,902	7.03	%	10.05	%
2006	0.80	%	9,102		11.504161		104,711	7.03	%	9.72	%
2005	0.00	%	1,936		10.540776		20,407	6.33	%	5.41	%	5/2/2005
2005	0.50	%	4,790		10.505908		50,323	6.33	%	5.06	%	5/2/2005
2005	0.80	%	8,904		10.485051		93,359	6.33	%	4.85	%	5/2/2005
Nationwide VIT - Gartmore Emerging Markets Fund - Class I (GEM)
2008	0.00	%	4,604		15.581599		71,738	1.08	%	-57.76	%
2008	0.50	%	37,210		14.951961		556,362	1.08	%	-57.97	%
2008	0.80	%	6,102		14.586450		89,007	1.08	%	-58.10	%
2008	1.00	%	18,953		14.133405		267,870	1.08	%	-58.18	%
2007	0.00	%	4,872		36.889137		179,724	0.71	%	45.58	%
2007	0.50	%	37,816		35.576728		1,345,370	0.71	%	44.85	%
2007	0.80	%	13,266		34.811779		461,813	0.71	%	44.41	%
2007	1.00	%	47,852		33.798406		1,617,321	0.71	%	44.12	%
2006	0.00	%	5,092		25.339713		129,030	0.72	%	36.72	%
2006	0.50	%	36,644		24.561198		900,021	0.72	%	36.04	%
2006	0.80	%	24,800		24.105617		597,819	0.72	%	35.63	%
2006	1.00	%	29,436		23.450961		690,302	0.72	%	35.36	%
2005	0.00	%	11,646		18.534273		215,850	0.61	%	32.64	%
2005	0.50	%	39,142		18.054599		706,693	0.61	%	31.98	%
2005	0.80	%	57,534		17.772777		1,022,539	0.61	%	31.58	%
2005	1.00	%	19,494		17.324605		337,726	0.61	%	31.32	%
2005	1.30	%	2,774		17.312824		48,026	0.61	%	30.93	%

(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***		Initial Offering Date^
2004	0.00	%	16,620	$	13.973799	$	232,245	0.93	%	20.74	%
2004	0.50	%	26,586		13.680089		363,699	0.93	%	20.14	%
2004	0.80	%	84,992		13.506849		1,147,974	0.93	%	19.78	%
2004	1.30	%	13,996		13.222981		185,069	0.93	%	19.18	%
Nationwide VIT - Gartmore Emerging Markets Fund - Class III (GEM3)
2008	0.00	%	29,125		11.185864		325,788	1.12	%	-57.83	%
2008	0.50	%	183,967		10.982610		2,020,438	1.12	%	-58.04	%
2008	0.80	%	42,738		10.862450		464,239	1.12	%	-58.17	%
2007	0.00	%	44,814		26.524857		1,188,685	0.74	%	45.55	%
2007	0.50	%	196,328		26.174039		5,138,697	0.74	%	44.82	%
2007	0.80	%	61,574		25.965810		1,598,819	0.74	%	44.38	%
2006	0.00	%	26,004		18.224168		473,901	0.78	%	36.64	%
2006	0.50	%	59,452		18.073662		1,074,515	0.78	%	35.97	%
2006	0.80	%	71,548		17.983970		1,286,717	0.78	%	35.56	%
2005	0.00	%	17,390		13.336908		231,929	0.19	%	33.37	%	5/2/2005
2005	0.50	%	42,298		13.292850		562,261	0.19	%	32.93	%	5/2/2005
2005	0.80	%	49,358		13.266490		654,807	0.19	%	32.66	%	5/2/2005
Nationwide VIT - Gartmore Global Utilities Fund - Class I (GVGU1)
2008	0.00	%	18,550		16.548066		306,967	3.10	%	-32.94	%
2008	0.50	%	25,030		16.005503		400,618	3.10	%	-33.27	%
2008	0.80	%	14,161		15.688527		222,165	3.10	%	-33.47	%
2008	1.00	%	14,089		15.480718		218,108	3.10	%	-33.61	%
2007	0.00	%	13,688		24.676248		337,768	2.36	%	20.43	%
2007	0.50	%	44,614		23.987048		1,070,158	2.36	%	19.83	%
2007	0.80	%	18,462		23.582792		435,386	2.36	%	19.47	%
2007	1.00	%	20,120		23.317091		469,140	2.36	%	19.23	%
2006	0.00	%	10,732		20.489395		219,892	2.82	%	37.56	%
2006	0.50	%	31,924		20.017433		639,037	2.82	%	36.88	%
2006	0.80	%	44,146		19.739493		871,420	2.82	%	36.47	%
2006	1.00	%	38,254		19.556346		748,108	2.82	%	36.20	%
2005	0.00	%	12,822		14.894755		190,981	2.16	%	6.39	%
2005	0.50	%	18,728		14.624338		273,885	2.16	%	5.86	%
2005	0.80	%	52,446		14.464451		758,603	2.16	%	5.54	%
2005	1.00	%	8,262		14.358831		118,633	2.16	%	5.33	%
2005	1.30	%	4,350		14.201823		61,778	2.16	%	5.02	%
2004	0.00	%	12,104		14.000446		169,461	1.92	%	29.97	%
2004	0.50	%	10,822		13.814954		149,505	1.92	%	29.32	%
2004	0.80	%	38,258		13.704848		524,320	1.92	%	28.93	%
2004	1.30	%	21,056		13.523265		284,746	1.92	%	28.29	%
Nationwide VIT - Gartmore International Equity Fund - Class I (GIG)
2008	0.00	%	13,969		9.211762		128,679	1.24	%	-46.06	%
2008	0.50	%	63,423		8.839463		560,625	1.24	%	-46.33	%
2008	0.80	%	9,215		8.623393		79,465	1.24	%	-46.49	%
2008	1.00	%	23,220		8.527308		198,004	1.24	%	-46.59	%
2007	0.00	%	13,744		17.076402		234,698	0.38	%	27.15	%
2007	0.50	%	64,516		16.468629		1,062,490	0.38	%	26.51	%
2007	0.80	%	24,468		16.114464		394,289	0.38	%	26.13	%
2007	1.00	%	73,628		15.966923		1,175,613	0.38	%	25.87	%
2006	0.00	%	15,102		13.430598		202,829	0.78	%	32.96	%
2006	0.50	%	25,884		13.017827		336,953	0.78	%	32.30	%
2006	0.80	%	90,176		12.776337		1,152,119	0.78	%	31.91	%
2006	1.00	%	37,946		12.684823		481,338	0.78	%	31.65	%

(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***		Initial Offering Date^
2005	0.00	%	3,756	$	10.100861	$	37,939	1.03	%	30.21	%
2005	0.50	%	4,962		9.839331		48,823	1.03	%	29.56	%
2005	0.80	%	37,028		9.685731		358,643	1.03	%	29.17	%
2005	1.00	%	24,308		9.635544		234,221	1.03	%	28.92	%
2005	1.30	%	3,512		9.434995		33,136	1.03	%	28.53	%
2004	0.00	%	1,590		7.757434		12,334	1.40	%	14.19	%
2004	0.50	%	1,290		7.594318		9,797	1.40	%	13.62	%
2004	0.80	%	16,036		7.498148		120,240	1.40	%	13.28	%
2004	1.30	%	15,442		7.340515		113,352	1.40	%	12.72	%
Nationwide VIT - Gartmore International Equity Fund - Class III (GIG3)
2008	0.00	%	1,565		5.516874		8,634	1.08	%	-44.83	%	5/1/2008
2008	0.50	%	2,344		5.498438		12,888	1.08	%	-45.02	%	5/1/2008
2008	0.80	%	170		5.487410		933	1.08	%	-45.13	%	5/1/2008
Nationwide VIT - Global Financial Services Fund - Class I (GVGF1)
2008	0.00	%	4,535		10.542078		47,808	1.83	%	-46.27	%
2008	0.50	%	16,943		10.196244		172,755	1.83	%	-46.54	%
2008	0.80	%	6,792		9.994191		67,881	1.83	%	-46.70	%
2008	1.00	%	8,903		9.861725		87,799	1.83	%	-46.81	%
2007	0.00	%	6,516		19.621675		127,855	3.13	%	-1.05	%
2007	0.50	%	20,752		19.073551		395,814	3.13	%	-1.55	%
2007	0.80	%	8,522		18.752014		159,805	3.13	%	-1.85	%
2007	1.00	%	5,350		18.540690		99,193	3.13	%	-2.04	%
2006	0.00	%	1,856		19.830405		36,805	1.89	%	20.32	%
2006	0.50	%	19,458		19.373628		376,972	1.89	%	19.72	%
2006	0.80	%	20,092		19.104581		383,849	1.89	%	19.37	%
2006	1.00	%	5,656		18.927318		107,053	1.89	%	19.13	%
2005	0.00	%	952		16.481268		15,690	2.00	%	11.15	%
2005	0.50	%	7,780		16.182094		125,897	2.00	%	10.60	%
2005	0.80	%	31,498		16.005171		504,131	2.00	%	10.27	%
2005	1.00	%	5,612		15.888310		89,165	2.00	%	10.05	%
2005	1.30	%	238		15.714600		3,740	2.00	%	9.72	%
2004	0.00	%	1,534		14.827817		22,746	1.45	%	20.99	%
2004	0.50	%	3,124		14.631389		45,708	1.45	%	20.39	%
2004	0.80	%	23,526		14.514755		341,474	1.45	%	20.03	%
2004	1.30	%	9,204		14.322458		131,824	1.45	%	19.43	%
Nationwide VIT - Government Bond Fund - Class I (GBF)
2008	0.00	%	101,325		21.647591		2,193,442	4.34	%	7.72	%
2008	0.50	%	180,930		37.676575		6,816,823	4.34	%	7.18	%
2008	0.80	%	84,645		28.329345		2,397,937	4.34	%	6.86	%
2008	1.00	%	292,160		14.935656		4,363,601	4.34	%	6.65	%
2007	0.00	%	97,024		20.096370		1,949,830	4.45	%	7.16	%
2007	0.50	%	132,504		35.151974		4,657,777	4.45	%	6.62	%
2007	0.80	%	102,864		26.510441		2,726,970	4.45	%	6.30	%
2007	1.00	%	140,436		14.004670		1,966,760	4.45	%	6.09	%
2006	0.00	%	95,134		18.753954		1,784,139	4.11	%	3.34	%
2006	0.50	%	106,356		32.969134		3,506,465	4.11	%	2.83	%
2006	0.80	%	157,392		24.939296		3,925,246	4.11	%	2.52	%
2006	1.00	%	127,692		13.201192		1,685,687	4.11	%	2.32	%
2006	1.30	%	7,562		25.368610		191,837	4.11	%	2.01	%
2005	0.00	%	105,202		18.147625		1,909,166	3.64	%	3.26	%
2005	0.50	%	64,816		32.062663		2,078,174	3.64	%	2.75	%
2005	0.80	%	225,488		24.326268		5,485,282	3.64	%	2.44	%

(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***		Initial Offering Date^
2005	1.00	%	119,678	$	12.902408	$	1,544,134	3.64	%	2.24	%
2005	1.30	%	16,748		24.868713		416,501	3.64	%	1.93	%
2004	0.00	%	114,686		17.574111		2,015,504	5.48	%	3.26	%
2004	0.50	%	43,088		31.204592		1,344,543	5.48	%	2.75	%
2004	0.80	%	314,094		23.746180		7,458,533	5.48	%	2.44	%
2004	1.30	%	87,934		24.397010		2,145,327	5.48	%	1.93	%
Nationwide VIT - Growth Fund - Class I (CAF)
2008	0.00	%	94,951		9.472940		899,465	0.27	%	-38.71	%
2008	0.50	%	306,649		13.972794		4,284,743	0.27	%	-39.01	%
2008	0.80	%	323,554		13.645751		4,415,137	0.27	%	-39.20	%
2008	1.00	%	36,164		4.174493		150,966	0.27	%	-39.32	%
2007	0.00	%	104,626		15.454811		1,616,975	0.17	%	19.54	%
2007	0.50	%	262,256		22.910775		6,008,488	0.17	%	18.94	%
2007	0.80	%	427,558		22.441944		9,595,233	0.17	%	18.59	%
2007	1.00	%	49,378		6.879197		339,681	0.17	%	18.35	%
2006	0.00	%	118,580		12.928125		1,533,017	0.05	%	6.17	%
2006	0.50	%	165,708		19.261676		3,191,814	0.05	%	5.64	%
2006	0.80	%	597,654		18.924499		11,310,303	0.05	%	5.32	%
2006	1.00	%	55,020		5.812653		319,812	0.05	%	5.11	%
2006	1.30	%	932		17.584603		16,389	0.05	%	4.80	%
2005	0.00	%	135,380		12.177042		1,648,528	0.08	%	6.50	%
2005	0.50	%	111,080		18.233340		2,025,359	0.08	%	5.97	%
2005	0.80	%	720,822		17.967853		12,951,624	0.08	%	5.65	%
2005	1.00	%	38,158		5.529847		211,008	0.08	%	5.44	%
2005	1.30	%	6,860		16.779162		115,105	0.08	%	5.13	%
2004	0.00	%	145,006		11.433814		1,657,972	0.33	%	8.16	%
2004	0.50	%	72,558		17.206018		1,248,434	0.33	%	7.62	%
2004	0.80	%	818,234		17.006258		13,915,099	0.33	%	7.30	%
2004	1.30	%	20,390		15.960562		325,436	0.33	%	6.76	%
Nationwide VIT - Health Sciences Fund - Class I (GVGH1)
2008	0.00	%	2,092		11.589966		24,246	0.29	%	-25.21	%
2008	0.50	%	6,829		11.209779		76,552	0.29	%	-25.59	%
2008	0.80	%	1,704		10.987732		18,723	0.29	%	-25.81	%
2008	1.00	%	22,174		10.842090		240,413	0.29	%	-25.96	%
2007	0.00	%	2,924		15.497697		45,315	0.08	%	13.16	%
2007	0.50	%	7,226		15.064598		108,857	0.08	%	12.59	%
2007	0.80	%	2,752		14.810633		40,759	0.08	%	12.25	%
2007	1.00	%	14,292		14.643631		209,287	0.08	%	12.03	%
2006	0.00	%	4,354		13.695316		59,629	0.00	%	2.71	%
2006	0.50	%	7,120		13.379661		95,263	0.00	%	2.20	%
2006	0.80	%	3,876		13.193822		51,139	0.00	%	1.89	%
2006	1.00	%	17,932		13.071309		234,395	0.00	%	1.69	%
2005	0.00	%	7,210		13.334230		96,140	0.00	%	8.44	%
2005	0.50	%	7,318		13.092046		95,808	0.00	%	7.90	%
2005	0.80	%	24,756		12.948895		320,563	0.00	%	7.58	%
2005	1.00	%	19,108		12.854278		245,620	0.00	%	7.36	%
2005	1.30	%	286		12.713706		3,636	0.00	%	7.04	%
2004	0.00	%	11,908		12.296466		146,426	0.00	%	7.86	%
2004	0.50	%	10,306		12.133480		125,048	0.00	%	7.32	%
2004	0.80	%	44,046		12.036757		530,171	0.00	%	7.00	%
2004	1.30	%	21,374		11.877203		253,863	0.00	%	6.47	%

(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***		Initial Offering Date^
Nationwide VIT - Health Sciences Fund - Class III (GVGHS)
2008	0.00	%	9,167	$	9.339799	$	85,618	0.28	%	-25.23	%
2008	0.50	%	52,395		9.170101		480,467	0.28	%	-25.61	%
2008	0.80	%	3,498		9.069777		31,726	0.28	%	-25.83	%
2007	0.00	%	1,306		12.491648		16,314	0.09	%	13.23	%
2007	0.50	%	38,088		12.326279		469,483	0.09	%	12.66	%
2007	0.80	%	5,112		12.228112		62,510	0.09	%	12.32	%
2006	0.00	%	3,408		11.032385		37,598	0.00	%	2.70	%
2006	0.50	%	19,322		10.941189		211,406	0.00	%	2.19	%
2006	0.80	%	14,692		10.886820		159,949	0.00	%	1.89	%
2005	0.00	%	230		10.742057		2,471	0.00	%	7.42	%	5/2/2005
2005	0.50	%	20,616		10.706525		220,726	0.00	%	7.07	%	5/2/2005
2005	0.80	%	19,656		10.685265		210,030	0.00	%	6.85	%	5/2/2005
Nationwide VIT - International Index Fund - Class VI (GVIX6)
2008	0.00	%	326		6.837123		2,229	2.05	%	-43.11	%
2008	0.50	%	39,457		6.746415		266,193	2.05	%	-43.39	%
2008	0.80	%	1,137		6.692562		7,609	2.05	%	-43.56	%
2007	0.50	%	31,716		11.917827		377,986	1.82	%	8.95	%
2007	0.80	%	678		11.858321		8,040	1.82	%	8.62	%
2006	0.50	%	530		10.938962		5,798	1.38	%	9.39	%	5/1/2006
2006	0.80	%	1,052		10.917219		11,485	1.38	%	9.17	%	5/1/2006
Nationwide VIT - Investor Destinations Aggressive Fund - Class II (GVIDA)
2008	0.00	%	5,689		10.574854		60,160	1.95	%	-36.84	%
2008	0.50	%	147,039		10.214579		1,501,941	1.95	%	-37.16	%
2008	0.80	%	53,348		10.004311		533,710	1.95	%	-37.35	%
2008	1.00	%	322		9.866526		3,177	1.95	%	-37.47	%
2007	0.00	%	5,888		16.743624		98,586	2.03	%	5.96	%
2007	0.50	%	199,734		16.254455		3,246,567	2.03	%	5.43	%
2007	0.80	%	73,246		15.967821		1,169,579	2.03	%	5.11	%
2007	1.00	%	328		15.779509		5,176	2.03	%	4.90	%
2006	0.00	%	1,756		15.802084		27,748	2.11	%	16.87	%
2006	0.50	%	95,776		15.417742		1,476,650	2.11	%	16.29	%
2006	0.80	%	91,086		15.191606		1,383,743	2.11	%	15.94	%
2006	1.00	%	290		15.042687		4,362	2.11	%	15.71	%
2005	0.00	%	530		13.521320		7,166	1.95	%	7.93	%
2005	0.50	%	59,996		13.258370		795,449	1.95	%	7.39	%
2005	0.80	%	85,552		13.103041		1,120,991	1.95	%	7.07	%
2004	0.00	%	84		12.527746		1,052	1.75	%	14.03	%
2004	0.50	%	49,550		12.345496		611,719	1.75	%	13.46	%
2004	0.80	%	57,102		12.237400		698,780	1.75	%	13.12	%
Nationwide VIT - Investor Destinations Conservative Fund - Class II (GVIDC)
2008	0.00	%	4,138		12.327359		51,011	3.40	%	-6.02	%
2008	0.50	%	51,425		11.907464		612,341	3.40	%	-6.49	%
2008	0.80	%	16,459		11.662459		191,952	3.40	%	-6.77	%
2008	1.00	%	2,434		11.501879		27,996	3.40	%	-6.96	%
2007	0.00	%	4,112		13.117367		53,939	3.97	%	5.38	%
2007	0.50	%	41,486		12.734093		528,287	3.97	%	4.85	%
2007	0.80	%	19,826		12.509560		248,015	3.97	%	4.54	%
2007	1.00	%	5,692		12.362022		70,365	3.97	%	4.33	%
2006	0.00	%	3,274		12.447546		40,753	2.89	%	6.16	%
2006	0.50	%	7,634		12.144751		92,713	2.89	%	5.64	%
2006	0.80	%	20,230		11.966643		242,085	2.89	%	5.32	%

(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***		Initial Offering Date^
2006	1.00	%	5,798	$	11.849304	$	68,702	2.89	%	5.11	%
2005	0.00	%	966		11.724859		11,326	2.78	%	3.31	%
2005	0.50	%	8,068		11.496816		92,756	2.78	%	2.79	%
2005	0.80	%	40,486		11.362140		460,008	2.78	%	2.49	%
2005	1.00	%	2,858		11.273191		32,219	2.78	%	2.28	%
2004	0.00	%	5,030		11.349571		57,088	2.46	%	4.65	%
2004	0.50	%	2,158		11.184449		24,136	2.46	%	4.13	%
2004	0.80	%	44,818		11.086539		496,877	2.46	%	3.82	%
2004	1.30	%	2,914		10.925221		31,836	2.46	%	3.30	%
Nationwide VIT - Investor Destinations Moderate Fund - Class II (GVIDM)
2008	0.00	%	91,097		11.441586		1,042,294	2.78	%	-23.20	%
2008	0.50	%	198,084		11.051801		2,189,185	2.78	%	-23.58	%
2008	0.80	%	97,732		10.824352		1,057,886	2.78	%	-23.81	%
2008	1.00	%	15,405		10.675316		164,453	2.78	%	-23.96	%
2007	0.00	%	89,402		14.896957		1,331,818	2.62	%	5.66	%
2007	0.50	%	214,672		14.461679		3,104,518	2.62	%	5.13	%
2007	0.80	%	137,718		14.206661		1,956,513	2.62	%	4.81	%
2007	1.00	%	45,290		14.039145		635,833	2.62	%	4.60	%
2006	0.00	%	90,888		14.099052		1,281,435	2.50	%	11.35	%
2006	0.50	%	199,278		13.756055		2,741,279	2.50	%	10.80	%
2006	0.80	%	241,266		13.554301		3,270,192	2.50	%	10.47	%
2006	1.00	%	41,320		13.421439		554,574	2.50	%	10.25	%
2006	1.30	%	2,822		13.224582		37,320	2.50	%	9.92	%
2005	0.00	%	72,624		12.661618		919,537	2.36	%	5.34	%
2005	0.50	%	129,056		12.415323		1,602,272	2.36	%	4.82	%
2005	0.80	%	234,442		12.269879		2,876,575	2.36	%	4.51	%
2005	1.00	%	36,840		12.173861		448,485	2.36	%	4.30	%
2005	1.30	%	11,178		12.031239		134,485	2.36	%	3.99	%
2004	0.00	%	57,958		12.019313		696,615	2.27	%	9.54	%
2004	0.50	%	85,112		11.844428		1,008,103	2.27	%	8.99	%
2004	0.80	%	230,378		11.740731		2,704,806	2.27	%	8.66	%
2004	1.30	%	35,746		11.569914		413,578	2.27	%	8.12	%
Nationwide VIT - Investor Destinations Moderately Aggressive Fund - Class II (GVDMA)
2008	0.00	%	52,343		11.015454		576,582	2.47	%	-31.39	%
2008	0.50	%	254,606		10.640174		2,709,052	2.47	%	-31.73	%
2008	0.80	%	119,944		10.421164		1,249,956	2.47	%	-31.94	%
2008	1.00	%	37,829		10.277660		388,794	2.47	%	-32.07	%
2007	0.00	%	50,888		16.055259		817,020	2.25	%	6.15	%
2007	0.50	%	210,008		15.586169		3,273,220	2.25	%	5.62	%
2007	0.80	%	177,620		15.311321		2,719,597	2.25	%	5.30	%
2007	1.00	%	38,380		15.130768		580,719	2.25	%	5.09	%
2006	0.00	%	47,128		15.125018		712,812	2.27	%	14.54	%
2006	0.50	%	152,382		14.757103		2,248,717	2.27	%	13.97	%
2006	0.80	%	247,768		14.540668		3,602,712	2.27	%	13.63	%
2006	1.00	%	23,212		14.398126		334,209	2.27	%	13.40	%
2005	0.00	%	25,104		13.204972		331,498	2.14	%	7.07	%
2005	0.50	%	81,078		12.948162		1,049,811	2.14	%	6.54	%
2005	0.80	%	281,378		12.796464		3,600,643	2.14	%	6.22	%
2005	1.00	%	1,550		12.696312		19,679	2.14	%	6.01	%
2005	1.30	%	22,262		12.547596		279,335	2.14	%	5.69	%
2004	0.00	%	24,722		12.332826		304,892	1.97	%	12.09	%
2004	0.50	%	41,042		12.153407		498,800	1.97	%	11.53	%

(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***		Initial Offering Date^
2004	0.80	%	250,424	$	12.046998	$	3,016,857	1.97	%	11.20	%
2004	1.30	%	24,178		11.871734		287,035	1.97	%	10.65	%
Nationwide VIT - Investor Destinations Moderately Conservative Fund - Class II (GVDMC)
2008	0.00	%	14,736		11.969310		176,380	3.21	%	-15.04	%
2008	0.50	%	41,276		11.561611		477,217	3.21	%	-15.47	%
2008	0.80	%	110,626		11.323691		1,252,695	3.21	%	-15.72	%
2008	1.00	%	37,456		11.167796		418,301	3.21	%	-15.89	%
2007	0.00	%	13,564		14.088774		191,100	2.92	%	5.86	%
2007	0.50	%	22,454		13.677144		307,107	2.92	%	5.33	%
2007	0.80	%	100,130		13.435963		1,345,343	2.92	%	5.01	%
2007	1.00	%	31,082		13.277544		412,693	2.92	%	4.80	%
2006	0.00	%	13,888		13.308971		184,835	2.76	%	8.42	%
2006	0.50	%	18,590		12.985235		241,396	2.76	%	7.88	%
2006	0.80	%	99,224		12.794782		1,269,549	2.76	%	7.56	%
2006	1.00	%	77,310		12.669367		979,469	2.76	%	7.35	%
2005	0.00	%	9,208		12.275099		113,029	2.75	%	4.49	%
2005	0.50	%	18,510		12.036367		222,793	2.75	%	3.97	%
2005	0.80	%	88,944		11.895366		1,058,021	2.75	%	3.66	%
2005	1.00	%	6,244		11.802269		73,693	2.75	%	3.45	%
2005	1.30	%	75,506		11.663995		880,702	2.75	%	3.14	%
2004	0.00	%	27,902		11.748118		327,796	2.48	%	7.16	%
2004	0.50	%	9,360		11.577210		108,363	2.48	%	6.62	%
2004	0.80	%	43,224		11.475860		496,033	2.48	%	6.31	%
2004	1.30	%	78,358		11.308888		886,142	2.48	%	5.78	%
Nationwide VIT - Lehman Brothers Core Plus Bond Fund - Class I (NVLCP1)
2008	0.50	%	16		9.914010		159	2.82	%	-0.86	%	5/1/2008
Nationwide VIT - Mid Cap Growth Fund - Class I (SGRF)
2008	0.00	%	15,105		4.097736		61,896	0.00	%	-46.11	%
2008	0.50	%	73,346		3.923801		287,795	0.00	%	-46.38	%
2008	0.80	%	17,878		3.822964		68,347	0.00	%	-46.54	%
2008	1.00	%	19,961		3.514695		70,157	0.00	%	-46.65	%
2007	0.00	%	16,598		7.604065		126,212	0.00	%	9.01	%
2007	0.50	%	83,188		7.317914		608,763	0.00	%	8.47	%
2007	0.80	%	39,732		7.151367		284,138	0.00	%	8.14	%
2007	1.00	%	27,266		6.587921		179,626	0.00	%	7.92	%
2006	0.00	%	19,038		6.975264		132,795	0.00	%	9.91	%
2006	0.50	%	92,144		6.746610		621,660	0.00	%	9.36	%
2006	0.80	%	77,924		6.612974		515,309	0.00	%	9.03	%
2006	1.00	%	30,726		6.104214		187,558	0.00	%	8.82	%
2005	0.00	%	24,418		6.346461		154,968	0.00	%	9.74	%
2005	0.50	%	72,740		6.169108		448,741	0.00	%	9.20	%
2005	0.80	%	88,246		6.065031		535,215	0.00	%	8.87	%
2005	1.00	%	24,834		5.609609		139,309	0.00	%	8.65	%
2004	0.00	%	21,204		5.783113		122,625	0.00	%	15.34	%
2004	0.50	%	87,438		5.649583		493,988	0.00	%	14.76	%
2004	0.80	%	97,936		5.570908		545,592	0.00	%	14.42	%
2004	1.30	%	19,586		5.442251		106,592	0.00	%	13.85	%
Nationwide VIT - Mid Cap Index Fund - Class I (MCIF)
2008	0.00	%	46,729		11.533383		538,943	1.24	%	-36.46	%
2008	0.50	%	218,000		11.044098		2,407,613	1.24	%	-36.78	%
2008	0.80	%	44,095		10.760553		474,487	1.24	%	-36.97	%
2008	1.00	%	34,842		9.639266		335,851	1.24	%	-37.10	%

(Continued)

100

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***		Initial Offering Date^
2007	0.00	%	51,172	$	18.152010	$	928,875	1.35	%	7.56	%
2007	0.50	%	221,386		17.469317		3,867,462	1.35	%	7.02	%
2007	0.80	%	81,490		17.072106		1,391,206	1.35	%	6.70	%
2007	1.00	%	34,096		15.323833		522,481	1.35	%	6.48	%
2006	0.00	%	58,484		16.876236		986,990	1.13	%	9.89	%
2006	0.50	%	202,754		16.323372		3,309,629	1.13	%	9.34	%
2006	0.80	%	141,094		16.000413		2,257,562	1.13	%	9.02	%
2006	1.00	%	41,104		14.390791		591,519	1.13	%	8.80	%
2006	1.30	%	4,202		15.476230		65,031	1.13	%	8.47	%
2005	0.00	%	65,296		15.357475		1,002,782	1.03	%	12.10	%
2005	0.50	%	137,224		14.928625		2,048,566	1.03	%	11.54	%
2005	0.80	%	229,268		14.677115		3,364,993	1.03	%	11.21	%
2005	1.00	%	43,640		13.226964		577,225	1.03	%	10.99	%
2005	1.30	%	15,760		14.267251		224,852	1.03	%	10.66	%
2004	0.00	%	74,186		13.700026		1,016,350	0.54	%	15.73	%
2004	0.50	%	57,928		13.383987		775,308	0.54	%	15.15	%
2004	0.80	%	324,610		13.197899		4,284,170	0.54	%	14.81	%
2004	1.30	%	77,226		12.893433		995,708	0.54	%	14.24	%
Nationwide VIT - Money Market Fund - Class I (SAM)
2008	0.00	%	426,717		15.548444		6,634,785	2.06	%	2.05	%
2008	0.50	%	1,022,503		20.953951		21,425,478	2.06	%	1.54	%
2008	0.80	%	217,188		16.681402		3,623,000	2.06	%	1.24	%
2008	1.00	%	434,025		11.410562		4,952,469	2.06	%	1.03	%
2008	1.30	%	283		16.039742		4,539	2.06	%	0.73	%
2007	0.00	%	553,934		15.235553		8,439,491	4.64	%	4.79	%
2007	0.50	%	847,514		20.635458		17,488,840	4.64	%	4.27	%
2007	0.80	%	329,710		16.477531		5,432,807	4.64	%	3.95	%
2007	1.00	%	419,234		11.293879		4,734,778	4.64	%	3.74	%
2007	1.30	%	252		15.923976		4,013	4.64	%	3.42	%
2006	0.00	%	307,156		14.538752		4,465,665	4.49	%	4.53	%
2006	0.50	%	485,516		19.791189		9,608,939	4.49	%	4.01	%
2006	0.80	%	566,642		15.851431		8,982,087	4.49	%	3.70	%
2006	1.00	%	495,002		10.886811		5,388,993	4.49	%	3.49	%
2006	1.30	%	1,120		15.396940		17,245	4.49	%	3.18	%
2005	0.00	%	309,850		13.908651		4,309,596	2.64	%	2.67	%
2005	0.50	%	305,794		19.028333		5,818,750	2.64	%	2.16	%
2005	0.80	%	727,730		15.286397		11,124,370	2.64	%	1.85	%
2005	1.00	%	408,430		10.519895		4,296,641	2.64	%	1.64	%
2005	1.30	%	69,288		14.923119		1,033,993	2.64	%	1.34	%
2004	0.00	%	336,040		13.547206		4,552,403	0.78	%	0.81	%
2004	0.50	%	162,122		18.626719		3,019,801	0.78	%	0.31	%
2004	0.80	%	899,340		15.008890		13,498,095	0.78	%	0.00	%
2004	1.30	%	380,556		14.726229		5,604,155	0.78	%	-0.50	%
Nationwide VIT - Multi-Manager International Growth Fund - Class III (NVMIG3)
2008	0.50	%	238		6.119892		1,457	0.10	%	-38.80	%	5/1/2008
Nationwide VIT - Multi-Manager International Value Fund - Class I (GVDIVI)
2008	0.00	%	1,177		12.742294		14,998	1.71	%	-46.31	%
2008	0.50	%	16,733		12.386191		207,258	1.71	%	-46.58	%
2008	0.80	%	4,801		12.177329		58,463	1.71	%	-46.74	%
2007	0.00	%	1,206		23.734976		28,624	2.06	%	2.92	%
2007	0.50	%	22,414		23.187675		519,729	2.06	%	2.40	%
2007	0.80	%	5,630		22.865372		128,732	2.06	%	2.09	%

(Continued)

101

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***		Initial Offering Date^
2006	0.00	%	2,190	$	23.062454	$	50,507	2.08	%	22.67	%
2006	0.50	%	22,408		22.644248		507,412	2.08	%	22.06	%
2006	0.80	%	14,186		22.396963		317,723	2.08	%	21.70	%
2005	0.00	%	3,908		18.800450		73,472	1.34	%	12.09	%
2005	0.50	%	24,690		18.551760		458,043	1.34	%	11.54	%
2005	0.80	%	27,788		18.404112		511,413	1.34	%	11.20	%
2004	0.00	%	11,032		16.772215		185,031	2.03	%	20.29	%
2004	0.50	%	15,934		16.633064		265,031	2.03	%	19.69	%
2004	0.80	%	64,536		16.550116		1,068,078	2.03	%	19.33	%
Nationwide VIT - Multi-Manager International Value Fund - Class III (GVDIV3)
2008	0.00	%	7,281		7.765128		56,538	1.67	%	-46.33	%
2008	0.50	%	88,977		7.624008		678,361	1.67	%	-46.60	%
2008	0.80	%	21,725		7.540568		163,819	1.67	%	-46.76	%
2007	0.00	%	10,900		14.468946		157,712	2.12	%	2.93	%
2007	0.50	%	111,682		14.277421		1,594,531	2.12	%	2.42	%
2007	0.80	%	30,584		14.163711		433,183	2.12	%	2.11	%
2006	0.00	%	10,116		14.056822		142,199	2.01	%	22.75	%
2006	0.50	%	98,312		13.940694		1,370,538	2.01	%	22.14	%
2006	0.80	%	45,492		13.871454		631,040	2.01	%	21.77	%
2005	0.00	%	6,630		11.451970		75,927	0.95	%	14.52	%	5/2/2005
2005	0.50	%	44,904		11.414099		512,539	0.95	%	14.14	%	5/2/2005
2005	0.80	%	35,798		11.391430		407,790	0.95	%	13.91	%	5/2/2005
Nationwide VIT - Multi-Manager Large Cap Growth Fund - Class I (NVMLG1)
2008	0.00	%	206		6.364575		1,311	0.22	%	-36.35	%	5/1/2008
Nationwide VIT - Multi-Manager Large Cap Value Fund - Class I (NVMLV1)
2008	0.50	%	14,906		6.335825		94,442	0.64	%	-36.64	%	5/1/2008
Nationwide VIT - Multi-Manager Mid Cap Growth Fund - Class I (NVMMG1)
2008	0.00	%	205		6.279727		1,287	0.00	%	-37.20	%	5/1/2008
2008	0.80	%	50		6.246185		312	0.00	%	-37.54	%	5/1/2008
Nationwide VIT - Multi-Manager Small Cap Growth Fund - Class I (SCGF)
2008	0.00	%	17,888		4.824485		86,300	0.00	%	-46.42	%
2008	0.50	%	130,619		4.619718		603,423	0.00	%	-46.69	%
2008	0.80	%	21,966		4.501065		98,870	0.00	%	-46.85	%
2008	1.00	%	20,235		4.429099		89,623	0.00	%	-46.95	%
2007	0.00	%	17,950		9.004045		161,623	0.00	%	9.75	%
2007	0.50	%	126,230		8.665238		1,093,813	0.00	%	9.20	%
2007	0.80	%	29,062		8.468125		246,101	0.00	%	8.87	%
2007	1.00	%	26,118		8.349478		218,072	0.00	%	8.65	%
Nationwide VIT - Multi-Manager Small Cap Value Fund - Class I (SCVF)
2008	0.00	%	60,976		16.057560		979,126	1.09	%	-32.15	%
2008	0.50	%	175,334		15.223184		2,669,142	1.09	%	-32.49	%
2008	0.80	%	60,213		14.743543		887,753	1.09	%	-32.69	%
2008	1.00	%	35,377		11.718013		414,548	1.09	%	-32.83	%
2007	0.00	%	71,274		23.666727		1,686,822	1.10	%	-6.89	%
2007	0.50	%	195,390		22.549722		4,405,990	1.10	%	-7.36	%
2007	0.80	%	92,646		21.905042		2,029,415	1.10	%	-7.64	%
2007	1.00	%	43,030		17.444838		750,651	1.10	%	-7.83	%
2006	0.00	%	98,728		25.419000		2,509,567	0.43	%	17.29	%
2006	0.50	%	176,848		24.341439		4,304,735	0.43	%	16.71	%
2006	0.80	%	175,584		23.717026		4,164,330	0.43	%	16.36	%
2006	1.00	%	53,404		18.925926		1,010,720	0.43	%	16.13	%
2006	1.30	%	1,840		22.711726		41,790	0.43	%	15.78	%

(Continued)

102

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***		Initial Offering Date^
2005	0.00	%	107,082	$	21.671283	$	2,320,604	0.06	%	3.07	%
2005	0.50	%	164,618		20.856322		3,433,326	0.06	%	2.56	%
2005	0.80	%	287,838		20.382189		5,866,769	0.06	%	2.25	%
2005	1.00	%	105,618		16.297231		1,721,281	0.06	%	2.05	%
2005	1.30	%	14,854		19.615792		291,373	0.06	%	1.75	%
2004	0.00	%	125,486		21.025284		2,638,379	0.00	%	17.30	%
2004	0.50	%	100,222		20.335711		2,038,086	0.00	%	16.71	%
2004	0.80	%	410,958		19.932939		8,191,601	0.00	%	16.36	%
2004	1.30	%	109,740		19.279280		2,115,708	0.00	%	15.78	%
Nationwide VIT - Multi-Manager Small Company Fund - Class I (SCF)
2008	0.00	%	95,931		20.120207		1,930,152	0.82	%	-38.19	%
2008	0.50	%	389,374		24.875036		9,685,692	0.82	%	-38.50	%
2008	0.80	%	127,206		24.167902		3,074,302	0.82	%	-38.68	%
2008	1.00	%	33,872		9.300801		315,037	0.82	%	-38.80	%
2007	0.00	%	118,982		32.550692		3,872,946	0.09	%	2.13	%
2007	0.50	%	385,134		40.445411		15,576,903	0.09	%	1.62	%
2007	0.80	%	190,308		39.414039		7,500,807	0.09	%	1.31	%
2007	1.00	%	38,152		15.198601		579,857	0.09	%	1.11	%
2007	1.30	%	392		37.083919		14,537	0.09	%	0.81	%
2006	0.00	%	127,382		31.871050		4,059,798	0.11	%	12.04	%
2006	0.50	%	319,750		39.800578		12,726,235	0.11	%	11.48	%
2006	0.80	%	325,094		38.902849		12,647,083	0.11	%	11.15	%
2006	1.00	%	49,560		15.031685		744,970	0.11	%	10.93	%
2006	1.30	%	816		36.787497		30,019	0.11	%	10.60	%
2005	0.00	%	133,578		28.446533		3,799,831	0.00	%	12.32	%
2005	0.50	%	159,914		35.701630		5,709,190	0.00	%	11.76	%
2005	0.80	%	568,428		35.000912		19,895,498	0.00	%	11.42	%
2005	1.00	%	40,176		13.551021		544,426	0.00	%	11.20	%
2005	1.30	%	6,916		33.263194		230,048	0.00	%	10.87	%
2004	0.00	%	143,764		25.327151		3,641,133	0.00	%	19.02	%
2004	0.50	%	94,992		31.945431		3,034,560	0.00	%	18.43	%
2004	0.80	%	659,468		31.412204		20,715,343	0.00	%	18.07	%
2004	1.30	%	27,688		30.001771		830,689	0.00	%	17.49	%
Nationwide VIT - Nationwide Fund - Class I (TRF)
2008	0.00	%	193,391		14.413309		2,787,404	1.40	%	-41.55	%
2008	0.50	%	557,930		31.517666		17,584,651	1.40	%	-41.85	%
2008	0.80	%	726,828		25.156819		18,284,680	1.40	%	-42.02	%
2008	1.00	%	143,966		6.826209		982,742	1.40	%	-42.14	%
2007	0.00	%	215,182		24.661007		5,306,605	1.05	%	8.18	%
2007	0.50	%	592,642		54.197488		32,119,708	1.05	%	7.64	%
2007	0.80	%	846,056		43.389809		36,710,208	1.05	%	7.31	%
2007	1.00	%	149,962		11.797304		1,769,147	1.05	%	7.10	%
2006	0.00	%	247,594		22.796000		5,644,153	1.08	%	13.63	%
2006	0.50	%	467,698		50.351226		23,549,168	1.08	%	13.06	%
2006	0.80	%	1,155,132		40.432316		46,704,662	1.08	%	12.72	%
2006	1.00	%	167,948		11.015308		1,849,999	1.08	%	12.50	%
2006	1.30	%	314		40.292927		12,652	1.08	%	12.16	%
2005	0.00	%	271,134		20.062025		5,439,497	0.91	%	7.44	%
2005	0.50	%	297,534		44.533940		13,250,361	0.91	%	6.91	%
2005	0.80	%	1,522,010		35.868129		54,591,651	0.91	%	6.59	%
2005	1.00	%	153,820		9.791361		1,506,107	0.91	%	6.38	%
2005	1.30	%	5,272		35.923101		189,387	0.91	%	6.06	%

(Continued)

103

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***		Initial Offering Date^
2004	0.00	%	283,884	$	18.672551	$	5,300,838	1.28	%	9.75	%
2004	0.50	%	167,838		41.656679		6,991,574	1.28	%	9.20	%
2004	0.80	%	1,808,392		33.651239		60,854,631	1.28	%	8.88	%
2004	1.30	%	50,156		33.871221		1,698,845	1.28	%	8.33	%
Nationwide VIT - Nationwide Leaders Fund - Class I (GVUS1)
2008	0.00	%	4,220		9.006647		38,008	0.78	%	-49.91	%
2008	0.50	%	26,001		8.711189		226,500	0.78	%	-50.16	%
2008	0.80	%	2,524		8.538594		21,551	0.78	%	-50.31	%
2008	1.00	%	1,246		8.425426		10,498	0.78	%	-50.41	%
2007	0.00	%	5,280		17.979434		94,931	1.15	%	11.56	%
2007	0.50	%	28,472		17.477126		497,609	1.15	%	11.00	%
2007	0.80	%	7,118		17.182548		122,305	1.15	%	10.67	%
2007	1.00	%	1,218		16.988891		20,692	1.15	%	10.44	%
2006	0.00	%	4,904		16.116355		79,035	0.97	%	16.05	%
2006	0.50	%	15,828		15.745056		249,213	0.97	%	15.47	%
2006	0.80	%	10,376		15.526442		161,102	0.97	%	15.12	%
2006	1.00	%	2,084		15.382337		32,057	0.97	%	14.89	%
2005	0.00	%	2,942		13.887943		40,858	1.54	%	10.31	%
2005	0.50	%	9,478		13.635788		129,240	1.54	%	9.76	%
2005	0.80	%	12,432		13.486728		167,667	1.54	%	9.44	%
2005	1.00	%	3,916		13.388228		52,428	1.54	%	9.22	%
2005	1.30	%	1,590		13.241863		21,055	1.54	%	8.89	%
2004	0.00	%	2,072		12.589767		26,086	0.52	%	18.79	%
2004	0.50	%	2,600		12.422944		32,300	0.52	%	18.20	%
2004	0.80	%	3,724		12.323917		45,894	0.52	%	17.85	%
2004	1.30	%	5,346		12.160621		65,011	0.52	%	17.26	%
Nationwide VIT - Neuberger Berman Multi-Cap Opportunities Fund - Class I (NVNMO1)
2008	0.80	%	171		5.154692		881	0.00	%	-48.45	%	5/1/2008
Nationwide VIT - Neuberger Berman Socially Responsible Fund - Class I (NVNSR1)
2008	0.50	%	69		6.157812		425	0.43	%	-38.42	%	5/1/2008
Nationwide VIT - Short Term Bond Fund - Class II (NVSTB2)
2008	0.00	%	259		9.943310		2,575	1.15	%	-0.57	%	5/1/2008
2008	0.50	%	2,297		9.910227		22,764	1.15	%	-0.90	%	5/1/2008
2008	0.80	%	231		9.890421		2,285	1.15	%	-1.10	%	5/1/2008
Nationwide VIT - Technology and Communications Fund - Class I (GGTC)
2008	0.00	%	2,006		2.181418		4,376	0.00	%	-48.57	%
2008	0.50	%	49,323		2.093189		103,242	0.00	%	-48.83	%
2008	0.80	%	22,045		2.041986		45,016	0.00	%	-48.98	%
2008	1.00	%	18,399		1.951999		35,915	0.00	%	-49.08	%
2007	0.00	%	10,448		4.241547		44,316	0.00	%	20.09	%
2007	0.50	%	53,296		4.090476		218,006	0.00	%	19.49	%
2007	0.80	%	35,194		4.002446		140,862	0.00	%	19.13	%
2007	1.00	%	39,948		3.833761		153,151	0.00	%	18.89	%
2006	0.00	%	11,308		3.531877		39,938	0.00	%	11.17	%
2006	0.50	%	55,710		3.423239		190,709	0.00	%	10.62	%
2006	0.80	%	51,828		3.359674		174,125	0.00	%	10.29	%
2006	1.00	%	27,680		3.224567		89,256	0.00	%	10.07	%
2005	0.00	%	15,970		3.177040		50,737	0.00	%	-0.52	%
2005	0.50	%	33,760		3.094710		104,477	0.00	%	-1.01	%
2005	0.80	%	124,346		3.046342		378,800	0.00	%	-1.31	%
2005	1.00	%	15,226		2.929673		44,607	0.00	%	-1.50	%
2005	1.30	%	2,224		2.967380		6,599	0.00	%	-1.80	%

(Continued)

104

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***		Initial Offering Date^
2004	0.00	%	24,430	$	3.193545	$	78,018	0.00	%	4.31	%
2004	0.50	%	29,620		3.126331		92,602	0.00	%	3.79	%
2004	0.80	%	219,234		3.086695		676,708	0.00	%	3.48	%
2004	1.30	%	29,678		3.021716		89,678	0.00	%	2.97	%
Nationwide VIT - Technology and Communications Fund - Class III (GGTC3)
2008	0.00	%	635		8.454726		5,369	0.00	%	-48.59	%
2008	0.50	%	20,999		8.301071		174,314	0.00	%	-48.84	%
2008	0.80	%	5,426		8.210206		44,549	0.00	%	-49.00	%
2007	0.00	%	1,330		16.444438		21,871	0.00	%	20.19	%
2007	0.50	%	37,420		16.226798		607,207	0.00	%	19.58	%
2007	0.80	%	8,672		16.097584		139,598	0.00	%	19.22	%
2006	0.00	%	172		13.682536		2,353	0.00	%	11.08	%
2006	0.50	%	12,314		13.569468		167,094	0.00	%	10.53	%
2006	0.80	%	8,150		13.502082		110,042	0.00	%	10.20	%
2005	0.00	%	2,428		12.317458		29,907	0.00	%	23.17	%	5/2/2005
2005	0.50	%	18,758		12.276743		230,287	0.00	%	22.77	%	5/2/2005
2005	0.80	%	10,504		12.252375		128,699	0.00	%	22.52	%	5/2/2005
Nationwide VIT - U.S. Growth Leaders Fund - Class I (GVUG1)
2008	0.00	%	9,519		11.293974		107,507	0.00	%	-41.29	%
2008	0.50	%	28,348		10.923540		309,661	0.00	%	-41.58	%
2008	0.80	%	6,758		10.707131		72,359	0.00	%	-41.76	%
2008	1.00	%	2,565		10.565207		27,100	0.00	%	-41.88	%
2007	0.00	%	10,106		19.237188		194,411	0.00	%	22.49	%
2007	0.50	%	28,912		18.699798		540,649	0.00	%	21.87	%
2007	0.80	%	7,828		18.384573		143,914	0.00	%	21.50	%
2007	1.00	%	2,584		18.177321		46,970	0.00	%	21.26	%
2006	0.00	%	9,376		15.705651		147,256	0.25	%	-0.29	%
2006	0.50	%	18,158		15.343823		278,613	0.25	%	-0.78	%
2006	0.80	%	13,106		15.130732		198,303	0.25	%	-1.08	%
2006	1.00	%	9,994		14.990265		149,813	0.25	%	-1.28	%
2005	0.00	%	5,658		15.751023		89,119	0.00	%	11.96	%
2005	0.50	%	14,474		15.465102		223,842	0.00	%	11.41	%
2005	0.80	%	30,714		15.296041		469,803	0.00	%	11.07	%
2005	1.00	%	13,390		15.184319		203,318	0.00	%	10.85	%
2005	1.30	%	1,378		15.018298		20,695	0.00	%	10.52	%
2004	0.00	%	4,040		14.068165		56,835	0.00	%	12.41	%
2004	0.50	%	21,016		13.881788		291,740	0.00	%	11.85	%
2004	0.80	%	27,528		13.771155		379,092	0.00	%	11.51	%
2004	1.30	%	11,128		13.588665		151,215	0.00	%	10.96	%
Nationwide VIT - Van Kampen Comstock Value Fund - Class I (EIF)
2008	0.00	%	6,958		11.084763		77,128	1.98	%	-36.99	%
2008	0.50	%	33,463		10.774963		360,563	1.98	%	-37.31	%
2008	0.80	%	7,035		10.593240		74,523	1.98	%	-37.49	%
2007	0.00	%	8,692		17.592080		152,910	1.71	%	-2.22	%
2007	0.50	%	36,330		17.186389		624,382	1.71	%	-2.71	%
2007	0.80	%	10,218		16.947459		173,169	1.71	%	-3.00	%
2006	0.00	%	7,610		17.990877		136,911	1.74	%	15.91	%
2006	0.50	%	28,342		17.664583		500,650	1.74	%	15.33	%
2006	0.80	%	22,182		17.471634		387,556	1.74	%	14.98	%
2005	0.00	%	5,522		15.522071		85,713	1.69	%	4.25	%
2005	0.50	%	15,396		15.316704		235,816	1.69	%	3.73	%
2005	0.80	%	32,400		15.194781		492,311	1.69	%	3.42	%

(Continued)

105

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***		Initial Offering Date^
2004	0.00	%	1,768	$	14.889740	$	26,325	1.56	%	17.50	%
2004	0.50	%	7,480		14.766163		110,451	1.56	%	16.91	%
2004	0.80	%	29,708		14.692503		436,485	1.56	%	16.56	%
Nationwide VIT - Van Kampen Multi-Sector Bond Fund - Class I (MSBF)
2008	0.00	%	7,635		12.976596		99,076	6.56	%	-17.29	%
2008	0.50	%	52,478		12.426396		652,112	6.56	%	-17.70	%
2008	0.80	%	10,404		12.107507		125,967	6.56	%	-17.95	%
2008	1.00	%	4,740		11.660904		55,273	6.56	%	-18.11	%
2007	0.00	%	9,784		15.689482		153,506	4.10	%	4.62	%
2007	0.50	%	61,778		15.099593		932,823	4.10	%	4.10	%
2007	0.80	%	19,404		14.756333		286,332	4.10	%	3.79	%
2007	1.00	%	17,946		14.240475		255,560	4.10	%	3.58	%
2006	0.00	%	10,602		14.995990		158,987	4.42	%	4.84	%
2006	0.50	%	39,090		14.504882		566,996	4.42	%	4.32	%
2006	0.80	%	37,902		14.217959		538,889	4.42	%	4.00	%
2006	1.00	%	14,786		13.748525		203,286	4.42	%	3.80	%
2005	0.00	%	14,212		14.303985		203,288	3.89	%	2.18	%
2005	0.50	%	11,354		13.904678		157,874	3.89	%	1.67	%
2005	0.80	%	44,454		13.670462		607,707	3.89	%	1.37	%
2005	1.00	%	2,210		13.245485		29,273	3.89	%	1.17	%
2005	1.30	%	2,220		13.288789		29,501	3.89	%	0.86	%
2004	0.00	%	12,326		13.998807		172,549	4.85	%	6.53	%
2004	0.50	%	9,006		13.676033		123,166	4.85	%	6.00	%
2004	0.80	%	59,986		13.485955		808,968	4.85	%	5.68	%
2004	1.30	%	8,078		13.174974		106,427	4.85	%	5.16	%
Nationwide VIT - Van Kampen Real Estate Fund - Class I (NVRE1)
2008	0.00	%	215		5.646840		1,214	3.65	%	-43.53	%	5/1/2008
2008	0.50	%	10,242		5.627880		57,641	3.65	%	-43.72	%	5/1/2008
2008	0.80	%	226		5.616528		1,269	3.65	%	-43.83	%	5/1/2008
Neuberger Berman AMT - Balanced Portfolio - Class I (AMBP)
2008	0.50	%	17,915		8.815611		157,932	3.77	%	-39.45	%
2008	0.80	%	1,334		18.986328		25,328	3.77	%	-39.63	%
2007	0.50	%	14,752		14.559590		214,783	0.81	%	15.02	%
2007	0.80	%	1,448		31.451710		45,542	0.81	%	14.68	%
2006	0.50	%	1,380		12.657889		17,468	0.77	%	10.12	%
2006	0.80	%	852		27.426214		23,367	0.77	%	9.79	%
2005	0.50	%	1,038		11.494958		11,932	1.03	%	8.64	%
2005	0.80	%	1,268		24.981076		31,676	1.03	%	8.31	%
2004	0.50	%	408		10.580939		4,317	1.30	%	8.76	%
2004	0.80	%	1,898		23.063588		43,775	1.30	%	8.44	%
Neuberger Berman AMT - Growth Portfolio - Class I (AMTG)
2008	0.00	%	63,596		12.842535		816,734	0.00	%	-43.68	%
2008	0.50	%	175,438		30.272680		5,310,978	0.00	%	-43.96	%
2008	0.80	%	144,350		20.427668		2,948,734	0.00	%	-44.13	%
2008	1.00	%	159,176		4.328471		688,989	0.00	%	-44.24	%
2007	0.00	%	64,996		22.802283		1,482,057	0.00	%	22.70	%
2007	0.50	%	180,172		54.020381		9,732,960	0.00	%	22.08	%
2007	0.80	%	185,704		36.562250		6,789,756	0.00	%	21.71	%
2007	1.00	%	181,806		7.762827		1,411,329	0.00	%	21.47	%
2006	0.00	%	77,208		18.584451		1,434,868	0.00	%	14.07	%
2006	0.50	%	157,596		44.249809		6,973,593	0.00	%	13.50	%
2006	0.80	%	262,710		30.039737		7,891,739	0.00	%	13.16	%

(Continued)

106

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***		Initial Offering Date^
2006	1.00	%	200,916	$	6.390816	$	1,284,017	0.00	%	12.94	%
2006	1.30	%	1,860		28.970099		53,884	0.00	%	12.60	%
2005	0.00	%	74,162		16.292408		1,208,278	0.00	%	13.50	%
2005	0.50	%	111,124		38.986368		4,332,321	0.00	%	12.93	%
2005	0.80	%	370,758		26.545874		9,842,095	0.00	%	12.60	%
2005	1.00	%	189,716		5.658791		1,073,563	0.00	%	12.37	%
2005	1.30	%	8,346		25.728636		214,731	0.00	%	12.04	%
2004	0.00	%	79,436		14.354807		1,140,288	0.00	%	16.60	%
2004	0.50	%	72,940		34.521424		2,517,993	0.00	%	16.02	%
2004	0.80	%	519,352		23.576070		12,244,279	0.00	%	15.67	%
2004	1.30	%	58,460		22.964403		1,342,499	0.00	%	15.10	%
Neuberger Berman AMT - Guardian Portfolio - Class I (AMGP)
2008	0.00	%	10,705		9.964594		106,671	0.55	%	-37.24	%
2008	0.50	%	58,317		9.446847		550,912	0.55	%	-37.56	%
2008	0.80	%	38,898		9.149198		355,886	0.55	%	-37.75	%
2008	1.00	%	4,064		8.050613		32,718	0.55	%	-37.87	%
2007	0.00	%	13,170		15.878484		209,120	0.26	%	7.39	%
2007	0.50	%	58,036		15.129140		878,035	0.26	%	6.85	%
2007	0.80	%	47,724		14.696621		701,382	0.26	%	6.53	%
2007	1.00	%	4,748		12.957908		61,524	0.26	%	6.31	%
2006	0.00	%	20,178		14.786128		298,354	0.67	%	13.38	%
2006	0.50	%	44,048		14.159327		623,690	0.67	%	12.81	%
2006	0.80	%	73,922		13.796076		1,019,834	0.67	%	12.48	%
2006	1.00	%	7,572		12.188388		92,290	0.67	%	12.25	%
2005	0.00	%	23,910		13.041591		311,824	0.14	%	8.39	%
2005	0.50	%	42,392		12.551167		532,069	0.14	%	7.85	%
2005	0.80	%	88,548		12.265806		1,086,113	0.14	%	7.53	%
2005	1.00	%	2,788		10.858076		30,272	0.14	%	7.32	%
2004	0.00	%	34,354		12.031993		413,347	0.12	%	15.81	%
2004	0.50	%	32,314		11.637402		376,051	0.12	%	15.24	%
2004	0.80	%	121,580		11.406874		1,386,848	0.12	%	14.89	%
2004	1.30	%	4,968		11.032769		54,811	0.12	%	14.32	%
Neuberger Berman AMT - International Portfolio - Class S (AMINS)
2008	0.00	%	3,270		8.019658		26,224	0.00	%	-46.44	%
2008	0.50	%	15,954		7.873922		125,621	0.00	%	-46.70	%
2008	0.80	%	5,065		7.787751		39,445	0.00	%	-46.86	%
2007	0.00	%	5,680		14.972222		85,042	1.68	%	3.21	%
2007	0.50	%	17,036		14.774055		251,691	1.68	%	2.70	%
2007	0.80	%	8,240		14.656417		120,769	1.68	%	2.39	%
2006	0.00	%	5,640		14.506093		81,814	0.00	%	23.45	%
2006	0.50	%	8,138		14.386244		117,075	0.00	%	22.84	%
2006	0.80	%	8,786		14.314811		125,770	0.00	%	22.47	%
2005	0.00	%	2,516		11.750261		29,564	0.22	%	17.50	%	5/2/2005
2005	0.50	%	490		11.711411		5,739	0.22	%	17.11	%	5/2/2005
2005	0.80	%	58,070		11.688169		678,732	0.22	%	16.88	%	5/2/2005
Neuberger Berman AMT - Mid Cap Growth Portfolio - Class S (AMMCGS)
2008	0.00	%	976		12.814531		12,507	0.00	%	-43.51	%
2008	0.50	%	22,678		12.456353		282,485	0.00	%	-43.79	%
2008	0.80	%	2,547		12.246316		31,191	0.00	%	-43.96	%
2007	0.00	%	950		22.685497		21,551	0.00	%	22.20	%
2007	0.50	%	31,008		22.162337		687,210	0.00	%	21.59	%
2007	0.80	%	6,654		21.854333		145,419	0.00	%	21.22	%

(Continued)

107

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***		Initial Offering Date^
2006	0.50	%	17,228	$	18.227772	$	314,028	0.00	%	13.90	%
2006	0.80	%	11,910		18.028719		214,722	0.00	%	13.56	%
2005	0.00	%	2,328		16.217741		37,755	0.00	%	13.42	%
2005	0.50	%	5,284		16.003177		84,561	0.00	%	12.86	%
2005	0.80	%	9,044		15.875842		143,581	0.00	%	12.52	%
2004	0.00	%	3,532		14.298387		50,502	0.00	%	16.03	%
2004	0.50	%	2,568		14.179701		36,413	0.00	%	15.46	%
2004	0.80	%	11,620		14.108984		163,946	0.00	%	15.11	%
Neuberger Berman AMT - Partners Portfolio - Class I (AMTP)
2008	0.00	%	180,300		13.867013		2,500,222	0.51	%	-52.39	%
2008	0.50	%	356,536		19.700792		7,024,042	0.51	%	-52.63	%
2008	0.80	%	109,268		19.175837		2,095,305	0.51	%	-52.77	%
2008	1.00	%	65,586		7.565098		496,165	0.51	%	-52.87	%
2007	0.00	%	179,968		29.127775		5,242,067	0.64	%	9.34	%
2007	0.50	%	325,884		41.589921		13,553,490	0.64	%	8.79	%
2007	0.80	%	193,268		40.603834		7,847,422	0.64	%	8.46	%
2007	1.00	%	86,432		16.050889		1,387,310	0.64	%	8.24	%
2006	0.00	%	188,418		26.640503		5,019,550	0.71	%	12.24	%
2006	0.50	%	241,712		38.230288		9,240,719	0.71	%	11.68	%
2006	0.80	%	317,204		37.436671		11,875,062	0.71	%	11.35	%
2006	1.00	%	89,328		14.828703		1,324,618	0.71	%	11.13	%
2006	1.30	%	190		35.184666		6,685	0.71	%	10.80	%
2005	0.00	%	203,136		23.735143		4,821,462	1.02	%	18.04	%
2005	0.50	%	163,828		34.231207		5,608,030	1.02	%	17.46	%
2005	0.80	%	450,896		33.621038		15,159,592	1.02	%	17.11	%
2005	1.00	%	78,466		13.343910		1,047,043	1.02	%	16.87	%
2005	1.30	%	22,258		31.756491		706,836	1.02	%	16.53	%
2004	0.00	%	200,296		20.106864		4,027,324	0.01	%	18.98	%
2004	0.50	%	72,448		29.143256		2,111,371	0.01	%	18.38	%
2004	0.80	%	534,216		28.709463		15,337,054	0.01	%	18.03	%
2004	1.30	%	35,560		27.252721		969,107	0.01	%	17.44	%
Neuberger Berman AMT - Regency Portfolio - Class S (AMRS)
2008	0.00	%	6,436		7.206627		46,382	0.97	%	-45.95	%
2008	0.50	%	10,755		7.075613		76,098	0.97	%	-46.22	%
2008	0.80	%	2,044		6.998160		14,304	0.97	%	-46.38	%
2007	0.00	%	6,414		13.332382		85,514	0.66	%	3.05	%
2007	0.50	%	13,016		13.155851		171,237	0.66	%	2.54	%
2007	0.80	%	1,678		13.051065		21,900	0.66	%	2.23	%
2006	0.00	%	4,738		12.937253		61,297	0.44	%	10.94	%
2006	0.50	%	5,576		12.830334		71,542	0.44	%	10.38	%
2006	0.80	%	2,974		12.766616		37,968	0.44	%	10.05	%
2005	0.00	%	2,786		11.661977		32,490	0.00	%	16.62	%	5/2/2005
2005	0.50	%	2,318		11.623425		26,943	0.00	%	16.23	%	5/2/2005
2005	0.80	%	2,398		11.600355		27,818	0.00	%	16.00	%	5/2/2005
Neuberger Berman AMT - Small Cap Growth Portfolio - Class S (AMFAS)
2008	0.00	%	605		9.293948		5,623	0.00	%	-39.47	%
2008	0.50	%	7,742		9.034200		69,943	0.00	%	-39.78	%
2008	0.80	%	554		8.881843		4,921	0.00	%	-39.96	%
2007	0.00	%	544		15.355015		8,353	0.00	%	0.52	%
2007	0.50	%	5,616		15.000871		84,245	0.00	%	0.01	%
2007	0.80	%	514		14.792303		7,603	0.00	%	-0.29	%
2006	0.00	%	34		15.276302		519	0.00	%	5.25	%

(Continued)

108

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***		Initial Offering Date^
2006	0.50	%	3,464	$	14.999207	$	51,957	0.00	%	4.73	%
2006	0.80	%	2,652		14.835360		39,343	0.00	%	4.42	%
2005	0.00	%	854		14.513954		12,395	0.00	%	2.90	%
2005	0.50	%	5,906		14.321953		84,585	0.00	%	2.39	%
2005	0.80	%	1,526		14.207958		21,681	0.00	%	2.08	%
2004	0.00	%	486		14.105334		6,855	0.00	%	11.88	%
2004	0.50	%	4,114		13.988281		57,548	0.00	%	11.32	%
2004	0.80	%	3,644		13.918505		50,719	0.00	%	10.99	%
Neuberger Berman AMT - Socially Responsive Portfolio - Class I (AMSRS)
2008	0.00	%	1,900		11.099348		21,089	1.91	%	-39.44	%
2008	0.50	%	17,024		10.789157		183,675	1.91	%	-39.74	%
2008	0.80	%	4,401		10.607196		46,682	1.91	%	-39.93	%
2007	0.00	%	2,698		18.328379		49,450	0.09	%	7.61	%
2007	0.50	%	17,622		17.905737		315,535	0.09	%	7.07	%
2007	0.80	%	5,562		17.656802		98,207	0.09	%	6.75	%
2006	0.00	%	1,732		17.031699		29,499	0.17	%	13.70	%
2006	0.50	%	14,184		16.722808		237,196	0.17	%	13.14	%
2006	0.80	%	9,890		16.540130		163,582	0.17	%	12.80	%
2005	0.00	%	2,042		14.979202		30,588	0.00	%	6.86	%
2005	0.50	%	2,512		14.781029		37,130	0.00	%	6.33	%
2005	0.80	%	7,910		14.663357		115,987	0.00	%	6.01	%
2004	0.00	%	510		14.018027		7,149	0.00	%	13.28	%
2004	0.50	%	98		13.901675		1,362	0.00	%	12.71	%
2004	0.80	%	18,504		13.832310		255,953	0.00	%	12.38	%
Oppenheimer VAF - Balanced Fund - Non-Service Class (OVMS)
2008	0.00	%	45,187		13.889629		627,631	2.88	%	-43.47	%
2008	0.50	%	155,033		22.675909		3,515,514	2.88	%	-43.75	%
2008	0.80	%	60,265		21.280608		1,282,476	2.88	%	-43.92	%
2008	1.00	%	114,661		7.817080		896,314	2.88	%	-44.04	%
2007	0.00	%	51,554		24.570849		1,266,726	2.57	%	3.79	%
2007	0.50	%	155,028		40.315421		6,250,019	2.57	%	3.27	%
2007	0.80	%	85,350		37.948682		3,238,920	2.57	%	2.96	%
2007	1.00	%	129,370		13.967806		1,807,015	2.57	%	2.75	%
2006	0.00	%	64,490		23.674314		1,526,757	2.13	%	11.15	%
2006	0.50	%	124,154		39.040157		4,846,992	2.13	%	10.59	%
2006	0.80	%	146,968		36.859294		5,417,137	2.13	%	10.26	%
2006	1.00	%	143,020		13.594148		1,944,235	2.13	%	10.04	%
2005	0.00	%	72,064		21.300283		1,534,984	1.76	%	3.89	%
2005	0.50	%	102,966		35.300804		3,634,783	1.76	%	3.37	%
2005	0.80	%	211,716		33.428671		7,077,385	1.76	%	3.06	%
2005	1.00	%	127,708		12.353496		1,577,640	1.76	%	2.86	%
2005	1.30	%	8,748		32.399586		283,432	1.76	%	2.55	%
2004	0.00	%	76,060		20.502973		1,559,456	1.01	%	10.10	%
2004	0.50	%	54,126		34.149236		1,848,362	1.01	%	9.55	%
2004	0.80	%	325,990		32.435047		10,573,501	1.01	%	9.22	%
2004	1.30	%	59,420		31.593672		1,877,296	1.01	%	8.68	%
Oppenheimer VAF - Capital Appreciation Fund - Non-Service Class (OVGR)
2008	0.00	%	52,077		11.615515		604,901	0.15	%	-45.52	%
2008	0.50	%	253,957		10.935515		2,777,151	0.15	%	-45.79	%
2008	0.80	%	132,297		10.597162		1,401,973	0.15	%	-45.95	%
2008	1.00	%	65,793		5.331812		350,796	0.15	%	-46.06	%
2007	0.00	%	58,424		21.319679		1,245,581	0.23	%	14.15	%

(Continued)

109

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***		Initial Offering Date^
2007	0.50	%	221,522	$	20.172546	$	4,468,663	0.23	%	13.58	%
2007	0.80	%	209,154		19.607337		4,100,953	0.23	%	13.23	%
2007	1.00	%	70,288		9.884979		694,795	0.23	%	13.01	%
2006	0.00	%	68,276		18.677035		1,275,193	0.38	%	7.95	%
2006	0.50	%	195,220		17.761150		3,467,332	0.38	%	7.41	%
2006	0.80	%	329,602		17.315647		5,707,272	0.38	%	7.09	%
2006	1.00	%	77,536		8.747201		678,223	0.38	%	6.88	%
2006	1.30	%	1,892		16.515549		31,247	0.38	%	6.56	%
2005	0.00	%	81,160		17.301818		1,404,216	0.93	%	5.10	%
2005	0.50	%	154,400		16.535627		2,553,101	0.93	%	4.58	%
2005	0.80	%	488,450		16.169181		7,897,836	0.93	%	4.26	%
2005	1.00	%	112,070		8.184351		917,220	0.93	%	4.06	%
2005	1.30	%	10,204		15.499156		158,153	0.93	%	3.75	%
2004	0.00	%	83,842		16.462506		1,380,249	0.33	%	6.94	%
2004	0.50	%	104,114		15.812092		1,646,260	0.33	%	6.40	%
2004	0.80	%	653,294		15.508004		10,131,286	0.33	%	6.08	%
2004	1.30	%	74,904		14.939657		1,119,040	0.33	%	5.56	%
Oppenheimer VAF - Core Bond Fund - Non-Service Class (OVB)
2008	0.00	%	78,790		11.811237		930,607	4.71	%	-39.05	%
2008	0.50	%	190,845		17.675063		3,373,197	4.71	%	-39.35	%
2008	0.80	%	61,738		15.891423		981,105	4.71	%	-39.54	%
2008	1.00	%	49,540		8.562713		424,197	4.71	%	-39.66	%
2007	0.00	%	85,066		19.378308		1,648,435	5.26	%	4.39	%
2007	0.50	%	210,962		29.144443		6,148,370	5.26	%	3.87	%
2007	0.80	%	87,142		26.282217		2,290,285	5.26	%	3.56	%
2007	1.00	%	51,906		14.189932		736,543	5.26	%	3.35	%
2006	0.00	%	87,354		18.563148		1,621,565	5.20	%	5.28	%
2006	0.50	%	192,508		28.059142		5,401,609	5.20	%	4.76	%
2006	0.80	%	146,462		25.379927		3,717,195	5.20	%	4.44	%
2006	1.00	%	50,010		13.730362		686,655	5.20	%	4.23	%
2006	1.30	%	952		25.434609		24,214	5.20	%	3.92	%
2005	0.00	%	91,754		17.632382		1,617,842	5.34	%	2.59	%
2005	0.50	%	85,328		26.785454		2,285,549	5.34	%	2.08	%
2005	0.80	%	276,654		24.300441		6,722,814	5.34	%	1.77	%
2005	1.00	%	32,080		13.172613		422,577	5.34	%	1.57	%
2005	1.30	%	8,382		24.474528		205,145	5.34	%	1.27	%
2004	0.00	%	96,616		17.187703		1,660,607	4.80	%	5.49	%
2004	0.50	%	73,062		26.240474		1,917,182	4.80	%	4.97	%
2004	0.80	%	337,846		23.877339		8,066,863	4.80	%	4.65	%
2004	1.30	%	31,218		24.168614		754,496	4.80	%	4.13	%
Oppenheimer VAF - Global Securities Fund - Class 3 (OVGS3)
2008	0.00	%	38,920		9.026171		351,299	1.48	%	-40.19	%
2008	0.50	%	398,806		8.862171		3,534,287	1.48	%	-40.49	%
2008	0.80	%	126,475		8.765213		1,108,580	1.48	%	-40.67	%
2007	0.00	%	48,132		15.092302		726,423	1.25	%	6.34	%
2007	0.50	%	337,926		14.892546		5,032,578	1.25	%	5.80	%
2007	0.80	%	160,562		14.773970		2,372,138	1.25	%	5.49	%
2006	0.00	%	44,318		14.192798		628,996	0.80	%	17.69	%
2006	0.50	%	200,308		14.075542		2,819,444	0.80	%	17.10	%
2006	0.80	%	235,194		14.005648		3,294,044	0.80	%	16.75	%
2005	0.00	%	28,160		12.059670		339,600	0.00	%	20.60	%	5/2/2005

(Continued)

110

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***		Initial Offering Date^
2005	0.50	%	63,366	$	12.019802	$	761,647	0.00	%	20.20	%	5/2/2005
2005	0.80	%	156,170		11.995949		1,873,407	0.00	%	19.96	%	5/2/2005
Oppenheimer VAF - Global Securities Fund - Non-Service Class (OVGS)
2008	0.00	%	56,933		25.170686		1,433,043	1.59	%	-40.19	%
2008	0.50	%	367,478		29.210698		10,734,289	1.59	%	-40.49	%
2008	0.80	%	83,287		28.468276		2,371,037	1.59	%	-40.67	%
2008	1.00	%	141,920		8.873074		1,259,267	1.59	%	-40.78	%
2007	0.00	%	69,624		42.082850		2,929,976	1.37	%	6.32	%
2007	0.50	%	400,936		49.082767		19,679,048	1.37	%	5.79	%
2007	0.80	%	148,584		47.979344		7,128,963	1.37	%	5.47	%
2007	1.00	%	157,904		14.984363		2,366,091	1.37	%	5.26	%
2007	1.30	%	338		44.680582		15,102	1.37	%	4.94	%
2006	0.00	%	80,632		39.581622		3,191,545	1.04	%	17.69	%
2006	0.50	%	342,600		46.398150		15,896,006	1.04	%	17.11	%
2006	0.80	%	314,678		45.492106		14,315,365	1.04	%	16.76	%
2006	1.00	%	160,988		14.236174		2,291,853	1.04	%	16.52	%
2006	1.30	%	3,734		42.577872		158,986	1.04	%	16.18	%
2005	0.00	%	90,550		33.631650		3,045,346	1.07	%	14.31	%
2005	0.50	%	262,628		39.620511		10,405,456	1.07	%	13.74	%
2005	0.80	%	519,226		38.963173		20,230,692	1.07	%	13.40	%
2005	1.00	%	136,196		12.217371		1,663,957	1.07	%	13.17	%
2005	1.30	%	20,412		36.649419		748,088	1.07	%	12.84	%
2004	0.00	%	105,104		29.422164		3,092,387	1.25	%	19.16	%
2004	0.50	%	191,944		34.834576		6,686,288	1.25	%	18.57	%
2004	0.80	%	723,504		34.359210		24,859,026	1.25	%	18.21	%
2004	1.30	%	74,314		32.480314		2,413,742	1.25	%	17.62	%
Oppenheimer VAF - High Income Fund - Class 3 (OVHI3)
2008	0.00	%	1,322		2.039384		2,696	5.94	%	-78.89	%
2008	0.50	%	19,624		2.022384		39,687	5.94	%	-79.00	%
2008	0.80	%	4,411		2.012256		8,876	5.94	%	-79.06	%
2007	0.50	%	7,982		9.628770		76,857	0.00	%	-3.71	%	5/1/2007
2007	0.80	%	2,712		9.609476		26,061	0.00	%	-3.91	%	5/1/2007
Oppenheimer VAF - High Income Fund - Non-Service Class (OVHI)
2008	0.00	%	6,661		2.906468		19,360	8.31	%	-78.67	%
2008	0.50	%	13,066		2.825197		36,914	8.31	%	-78.78	%
2008	0.80	%	3,640		2.777517		10,110	8.31	%	-78.84	%
2007	0.00	%	8,188		13.627157		111,579	6.11	%	-0.10	%
2007	0.50	%	17,012		13.312822		226,478	6.11	%	-0.60	%
2007	0.80	%	7,928		13.127703		104,076	6.11	%	-0.90	%
2006	0.00	%	9,746		13.641009		132,945	6.97	%	9.42	%
2006	0.50	%	22,010		13.393515		294,791	6.97	%	8.88	%
2006	0.80	%	17,852		13.247178		236,489	6.97	%	8.55	%
2005	0.00	%	8,710		12.466334		108,582	6.75	%	2.31	%
2005	0.50	%	17,466		12.301306		214,855	6.75	%	1.80	%
2005	0.80	%	20,712		12.203356		252,756	6.75	%	1.50	%
2004	0.00	%	12,018		12.184423		146,432	4.23	%	8.97	%
2004	0.50	%	14,518		12.083237		175,424	4.23	%	8.42	%
2004	0.80	%	30,734		12.022940		369,513	4.23	%	8.10	%
Oppenheimer VAF - Main Street Small Cap Fund(R) - Non-Service Class (OVSC)
2008	0.00	%	4,707		12.859537		60,530	0.59	%	-37.83	%
2008	0.50	%	28,448		12.500175		355,605	0.59	%	-38.14	%
2008	0.80	%	7,267		12.289407		89,307	0.59	%	-38.33	%

(Continued)

111

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***		Initial Offering Date^
2007	0.00	%	6,170	$	20.683895	$	127,620	0.32	%	-1.21	%
2007	0.50	%	38,846		20.206983		784,960	0.32	%	-1.71	%
2007	0.80	%	14,068		19.926143		280,321	0.32	%	-2.00	%
2006	0.00	%	2,530		20.937110		52,971	0.14	%	15.00	%
2006	0.50	%	28,656		20.557489		589,095	0.14	%	14.43	%
2006	0.80	%	24,146		20.333041		490,962	0.14	%	14.08	%
2005	0.00	%	1,242		18.206560		22,613	0.00	%	9.92	%
2005	0.50	%	6,094		17.965801		109,484	0.00	%	9.37	%
2005	0.80	%	28,068		17.822891		500,253	0.00	%	9.05	%
2004	0.00	%	1,252		16.563464		20,737	0.00	%	19.42	%
2004	0.50	%	554		16.426073		9,100	0.00	%	18.82	%
2004	0.80	%	26,984		16.344185		441,031	0.00	%	18.47	%
Oppenheimer VAF - Main Street(R) - Non-Service Class (OVGI)
2008	0.00	%	30,415		7.176149		218,263	1.52	%	-38.47	%
2008	0.50	%	103,392		6.871720		710,481	1.52	%	-38.78	%
2008	0.80	%	19,090		6.695296		127,813	1.52	%	-38.96	%
2008	1.00	%	4,092		6.576580		26,911	1.52	%	-39.08	%
2007	0.00	%	39,470		11.662711		460,327	1.00	%	4.42	%
2007	0.50	%	98,264		11.224071		1,102,922	1.00	%	3.90	%
2007	0.80	%	29,480		10.968850		323,362	1.00	%	3.59	%
2007	1.00	%	6,962		10.795993		75,162	1.00	%	3.38	%
2006	0.00	%	40,880		11.168617		456,573	1.11	%	15.02	%
2006	0.50	%	116,614		10.802733		1,259,750	1.11	%	14.45	%
2006	0.80	%	57,418		10.588991		607,999	1.11	%	14.11	%
2006	1.00	%	7,816		10.443096		81,623	1.11	%	13.88	%
2005	0.00	%	44,198		9.709756		429,152	1.25	%	5.98	%
2005	0.50	%	48,678		9.438598		459,452	1.25	%	5.45	%
2005	0.80	%	92,862		9.279543		861,717	1.25	%	5.13	%
2005	1.00	%	16,864		9.169966		154,642	1.25	%	4.92	%
2005	1.30	%	2,664		9.020429		24,030	1.25	%	4.61	%
2004	0.00	%	28,322		9.162245		259,493	0.84	%	9.46	%
2004	0.50	%	33,884		8.950876		303,291	0.84	%	8.91	%
2004	0.80	%	97,760		8.826404		862,869	0.84	%	8.59	%
2004	1.30	%	25,380		8.622799		218,847	0.84	%	8.05	%
Oppenheimer VAF - Mid Cap Fund - Non-Service Class (OVAG)
2008	0.00	%	8,824		3.658769		32,285	0.00	%	-49.07	%
2008	0.50	%	100,993		3.503491		353,828	0.00	%	-49.32	%
2008	0.80	%	55,717		3.413488		190,189	0.00	%	-49.47	%
2008	1.00	%	9,419		2.970003		27,974	0.00	%	-49.57	%
2007	0.00	%	13,234		7.183358		95,065	0.00	%	6.33	%
2007	0.50	%	97,260		6.913096		672,368	0.00	%	5.80	%
2007	0.80	%	67,290		6.755828		454,600	0.00	%	5.48	%
2007	1.00	%	9,792		5.889904		57,674	0.00	%	5.27	%
2006	0.00	%	16,826		6.755577		113,669	0.00	%	2.96	%
2006	0.50	%	84,198		6.534169		550,164	0.00	%	2.44	%
2006	0.80	%	125,750		6.404804		805,404	0.00	%	2.14	%
2006	1.00	%	13,928		5.595113		77,929	0.00	%	1.93	%
2006	1.30	%	5,116		6.194874		31,693	0.00	%	1.63	%
2005	0.00	%	17,266		6.561616		113,293	0.00	%	12.33	%
2005	0.50	%	62,332		6.378300		397,572	0.00	%	11.77	%
2005	0.80	%	203,896		6.270767		1,278,584	0.00	%	11.43	%
2005	1.00	%	14,778		5.488955		81,116	0.00	%	11.21	%

(Continued)

112

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***		Initial Offering Date^
2005	1.30	%	10,562	$	6.095550	$	64,381	0.00	%	10.88	%
2004	0.00	%	34,910		5.841557		203,929	0.00	%	19.78	%
2004	0.50	%	50,906		5.706718		290,506	0.00	%	19.18	%
2004	0.80	%	265,960		5.627305		1,496,638	0.00	%	18.82	%
2004	1.30	%	38,774		5.497394		213,156	0.00	%	18.23	%
Putnam VT - Growth and Income Fund - Class IB (PVGIB)
2008	0.50	%	3,157		9.428528		29,766	2.66	%	-39.00	%
2008	0.80	%	1,820		9.269509		16,871	2.66	%	-39.19	%
2007	0.50	%	5,046		15.457268		77,997	1.31	%	-6.51	%
2007	0.80	%	1,852		15.242345		28,229	1.31	%	-6.79	%
2006	0.50	%	4,488		16.533564		74,203	1.14	%	15.33	%
2006	0.80	%	2,546		16.352963		41,635	1.14	%	14.99	%
2005	0.00	%	1,222		14.527575		17,753	1.56	%	5.23	%
2005	0.50	%	486		14.335363		6,967	1.56	%	4.70	%
2005	0.80	%	6,136		14.221232		87,261	1.56	%	4.39	%
2004	0.00	%	1,634		13.805820		22,559	1.66	%	11.11	%
2004	0.50	%	236		13.691228		3,231	1.66	%	10.56	%
2004	0.80	%	3,926		13.622923		53,484	1.66	%	10.23	%
Putnam VT - International Equity Fund - Class IB (PVTIGB)
2008	0.00	%	482		12.943794		6,239	2.10	%	-43.95	%
2008	0.50	%	15,376		12.582056		193,462	2.10	%	-44.23	%
2008	0.80	%	3,303		12.369896		40,858	2.10	%	-44.40	%
2007	0.00	%	1,362		23.093467		31,453	2.65	%	8.37	%
2007	0.50	%	15,198		22.560940		342,881	2.65	%	7.82	%
2007	0.80	%	5,836		22.247335		129,835	2.65	%	7.50	%
2006	0.00	%	232		21.310423		4,944	0.44	%	27.72	%
2006	0.50	%	7,758		20.923951		162,328	0.44	%	27.08	%
2006	0.80	%	9,818		20.695424		203,188	0.44	%	26.70	%
2005	0.00	%	178		16.685441		2,970	1.11	%	12.20	%
2005	0.50	%	1,404		16.464692		23,116	1.11	%	11.64	%
2005	0.80	%	18,032		16.333628		294,528	1.11	%	11.31	%
2004	0.50	%	1,000		14.748085		14,748	1.61	%	15.62	%
2004	0.80	%	8,052		14.674512		118,159	1.61	%	15.27	%
Putnam VT - Voyager Fund - Class IB (PVTVB)
2008	0.00	%	2,053		9.218880		18,926	0.00	%	-37.03	%
2008	0.50	%	1,698		8.961220		15,216	0.00	%	-37.35	%
2008	0.80	%	150		8.810096		1,322	0.00	%	-37.53	%
2007	0.00	%	2,622		14.640393		38,387	0.00	%	5.52	%
2007	0.50	%	1,450		14.302715		20,739	0.00	%	4.99	%
2007	0.80	%	1,028		14.103871		14,499	0.00	%	4.68	%
2006	0.00	%	2,660		13.874456		36,906	0.13	%	5.44	%
2006	0.50	%	1,246		13.622763		16,974	0.13	%	4.91	%
2006	0.80	%	2,010		13.473959		27,083	0.13	%	4.60	%
2005	0.00	%	2,746		13.159164		36,135	0.60	%	5.69	%
2005	0.50	%	2,788		12.985042		36,202	0.60	%	5.17	%
2005	0.80	%	2,700		12.881691		34,781	0.60	%	4.85	%
2004	0.00	%	2,224		12.450430		27,690	0.19	%	5.03	%
2004	0.50	%	720		12.347084		8,890	0.19	%	4.51	%
2004	0.80	%	1,378		12.285483		16,929	0.19	%	4.20	%
T. Rowe Price Blue Chip Growth Portfolio - II (TRBCG2)
2008	0.00	%	4,116		7.980543		32,848	0.10	%	-42.65	%
2008	0.50	%	59,543		7.835510		466,550	0.10	%	-42.94	%

(Continued)

113

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***		Initial Offering Date^
2008	0.80	%	3,499	$	7.749732	$	27,116	0.10	%	-43.11	%
2007	0.00	%	2,696		13.915435		37,516	0.12	%	12.49	%
2007	0.50	%	41,802		13.731252		573,994	0.12	%	11.92	%
2007	0.80	%	4,272		13.621873		58,193	0.12	%	11.59	%
2006	0.00	%	3,280		12.370493		40,575	0.24	%	9.33	%
2006	0.50	%	16,190		12.268264		198,623	0.24	%	8.79	%
2006	0.80	%	9,592		12.207295		117,092	0.24	%	8.46	%
2005	0.00	%	2,948		11.314946		33,356	0.29	%	13.15	%	5/2/2005
2005	0.50	%	818		11.277528		9,225	0.29	%	12.78	%	5/2/2005
2005	0.80	%	17,726		11.255124		199,508	0.29	%	12.55	%	5/2/2005
T. Rowe Price Equity Income Portfolio - II (TREI2)
2008	0.00	%	5,181		8.287351		42,937	2.16	%	-36.26	%
2008	0.50	%	94,290		8.136757		767,215	2.16	%	-36.58	%
2008	0.80	%	15,819		8.047714		127,307	2.16	%	-36.77	%
2007	0.00	%	8,510		13.002714		110,653	1.53	%	3.03	%
2007	0.50	%	84,110		12.830632		1,079,184	1.53	%	2.51	%
2007	0.80	%	25,522		12.728449		324,855	1.53	%	2.20	%
2006	0.00	%	8,360		12.620348		105,506	1.59	%	18.65	%
2006	0.50	%	58,750		12.516081		735,320	1.59	%	18.06	%
2006	0.80	%	36,012		12.453914		448,490	1.59	%	17.70	%
2005	0.00	%	3,790		10.636871		40,314	1.20	%	6.37	%	5/2/2005
2005	0.50	%	5,032		10.601687		53,348	1.20	%	6.02	%	5/2/2005
2005	0.80	%	21,876		10.580627		231,462	1.20	%	5.81	%	5/2/2005
T. Rowe Price Limited Term Bond Portfolio - Class II (TRLT2)
2008	0.00	%	3,811		11.230967		42,801	3.77	%	1.31	%
2008	0.50	%	129,334		11.026485		1,426,099	3.77	%	0.80	%
2008	0.80	%	2,934		10.905102		31,996	3.77	%	0.50	%
2007	0.00	%	3,446		11.086232		38,203	3.91	%	5.23	%
2007	0.50	%	30,906		10.939079		338,083	3.91	%	4.70	%
2007	0.80	%	1,904		10.851378		20,661	3.91	%	4.38	%
2006	0.50	%	1,008		10.448149		10,532	3.80	%	3.51	%
2006	0.80	%	4,952		10.395898		51,480	3.80	%	3.20	%
2005	0.50	%	540		10.094160		5,451	1.39	%	0.94	%	5/2/2005
2005	0.80	%	2,888		10.073971		29,094	1.39	%	0.74	%	5/2/2005
The Dreyfus Socially Responsible Growth Fund, Inc. - Initial Shares (DSRG)
2008	0.00	%	26,451		12.659521		334,857	0.76	%	-34.42	%
2008	0.50	%	136,568		18.281160		2,496,621	0.76	%	-34.75	%
2008	0.80	%	117,793		17.815941		2,098,593	0.76	%	-34.95	%
2008	1.00	%	19,389		4.735242		91,812	0.76	%	-35.08	%
2007	0.00	%	29,132		19.305130		562,397	0.53	%	7.79	%
2007	0.50	%	133,118		28.017912		3,729,688	0.53	%	7.25	%
2007	0.80	%	147,566		27.387135		4,041,410	0.53	%	6.92	%
2007	1.00	%	20,698		7.293750		150,966	0.53	%	6.71	%
2006	0.00	%	35,276		17.910706		631,818	0.11	%	9.20	%
2006	0.50	%	88,854		26.125145		2,321,324	0.11	%	8.66	%
2006	0.80	%	216,438		25.614125		5,543,870	0.11	%	8.33	%
2006	1.00	%	21,910		6.835295		149,761	0.11	%	8.12	%
2006	1.30	%	430		23.974748		10,309	0.11	%	7.79	%
2005	0.00	%	40,512		16.401660		664,464	0.00	%	3.62	%
2005	0.50	%	50,962		24.043585		1,225,309	0.00	%	3.10	%
2005	0.80	%	285,024		23.643910		6,739,082	0.00	%	2.79	%
2005	1.00	%	20,360		6.322127		128,719	0.00	%	2.59	%

(Continued)

114

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***		Initial Offering Date^
2005	1.30	%	1,602	$	22.241255	$	35,630	0.00	%	2.28	%
2004	0.00	%	46,244		15.829359		732,013	0.38	%	6.21	%
2004	0.50	%	31,910		23.320608		744,161	0.38	%	5.68	%
2004	0.80	%	333,044		23.001657		7,660,564	0.38	%	5.36	%
2004	1.30	%	9,240		21.745234		200,926	0.38	%	4.84	%
Van Eck Worldwide Insurance Trust - Bond Fund - Initial Class (VWBF)
2008	0.00	%	8,784		19.924512		175,017	8.29	%	3.61	%
2008	0.50	%	70,651		26.056562		1,840,922	8.29	%	3.09	%
2008	0.80	%	17,432		23.199721		404,418	8.29	%	2.78	%
2008	1.00	%	45,106		16.925172		763,427	8.29	%	2.58	%
2007	0.00	%	12,120		19.230801		233,077	5.77	%	9.71	%
2007	0.50	%	62,084		25.275372		1,569,196	5.77	%	9.16	%
2007	0.80	%	24,290		22.571765		548,268	5.77	%	8.83	%
2007	1.00	%	53,936		16.500009		889,944	5.77	%	8.61	%
2006	0.00	%	10,512		17.528628		184,261	8.51	%	6.48	%
2006	0.50	%	48,396		23.154258		1,120,573	8.51	%	5.95	%
2006	0.80	%	42,580		20.739979		883,108	8.51	%	5.63	%
2006	1.00	%	42,236		15.191481		641,627	8.51	%	5.42	%
2006	1.30	%	710		20.988551		14,902	8.51	%	5.11	%
2005	0.00	%	12,460		16.461869		205,115	7.55	%	-3.03	%
2005	0.50	%	43,868		21.853802		958,683	7.55	%	-3.51	%
2005	0.80	%	64,726		19.633767		1,270,815	7.55	%	-3.80	%
2005	1.00	%	44,648		14.409920		643,374	7.55	%	-3.99	%
2005	1.30	%	1,402		19.968392		27,996	7.55	%	-4.28	%
2004	0.00	%	14,838		16.976579		251,898	8.78	%	9.15	%
2004	0.50	%	36,364		22.649785		823,637	8.78	%	8.61	%
2004	0.80	%	94,458		20.409871		1,927,876	8.78	%	8.28	%
2004	1.30	%	41,310		20.861514		861,789	8.78	%	7.74	%
Van Eck Worldwide Insurance Trust - Emerging Markets Fund - Initial Class (VWEM)
2008	0.00	%	56,089		11.287193		633,087	0.00	%	-64.78	%
2008	0.50	%	227,426		10.570206		2,403,940	0.00	%	-64.96	%
2008	0.80	%	58,189		10.251688		596,535	0.00	%	-65.06	%
2008	1.00	%	21,025		11.694155		245,870	0.00	%	-65.13	%
2007	0.00	%	66,814		32.046703		2,141,168	0.43	%	37.61	%
2007	0.50	%	266,244		30.162210		8,030,507	0.43	%	36.92	%
2007	0.80	%	93,500		29.341648		2,743,444	0.43	%	36.51	%
2007	1.00	%	36,120		33.537534		1,211,376	0.43	%	36.24	%
2006	0.00	%	71,040		23.287309		1,654,330	0.60	%	39.49	%
2006	0.50	%	193,210		22.028276		4,256,083	0.60	%	38.80	%
2006	0.80	%	204,428		21.493674		4,393,909	0.60	%	38.38	%
2006	1.00	%	39,850		24.616702		980,976	0.60	%	38.11	%
2005	0.00	%	83,034		16.694466		1,386,208	0.73	%	32.00	%
2005	0.50	%	142,848		15.870762		2,267,107	0.73	%	31.34	%
2005	0.80	%	293,746		15.531958		4,562,451	0.73	%	30.95	%
2005	1.00	%	33,638		17.824242		599,572	0.73	%	30.69	%
2005	1.30	%	9,088		14.846881		134,928	0.73	%	30.30	%
2004	0.00	%	83,090		12.647730		1,050,900	0.59	%	25.89	%
2004	0.50	%	56,568		12.083728		683,552	0.59	%	25.26	%
2004	0.80	%	322,338		11.861162		3,823,303	0.59	%	24.89	%
2004	1.30	%	55,514		11.394604		632,560	0.59	%	24.27	%

(Continued)

115

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***		Initial Offering Date^
Van Eck Worldwide Insurance Trust - Hard Assets Fund - Initial Class (VWHA)
2008	0.00	%	31,247	$	21.292768	$	665,335	0.27	%	-46.12	%
2008	0.50	%	155,614		29.779289		4,634,074	0.27	%	-46.39	%
2008	0.80	%	25,576		35.171514		899,547	0.27	%	-46.56	%
2008	1.00	%	52,929		21.834128		1,155,659	0.27	%	-46.66	%
2007	0.00	%	38,468		39.522005		1,520,332	0.11	%	45.36	%
2007	0.50	%	157,032		55.552048		8,723,449	0.11	%	44.63	%
2007	0.80	%	41,152		65.808830		2,708,165	0.11	%	44.19	%
2007	1.00	%	68,368		40.935533		2,798,681	0.11	%	43.90	%
2006	0.00	%	42,234		27.189640		1,148,327	0.07	%	24.49	%
2006	0.50	%	127,868		38.410275		4,911,445	0.07	%	23.87	%
2006	0.80	%	71,458		45.639544		3,261,311	0.07	%	23.50	%
2006	1.00	%	62,902		28.446616		1,789,349	0.07	%	23.26	%
2005	0.00	%	54,640		21.840496		1,193,365	0.30	%	51.67	%
2005	0.50	%	94,726		31.007818		2,937,247	0.30	%	50.92	%
2005	0.80	%	119,090		36.954214		4,400,877	0.30	%	50.47	%
2005	1.00	%	66,950		23.079126		1,545,147	0.30	%	50.17	%
2005	1.30	%	11,812		32.040853		378,467	0.30	%	49.72	%
2004	0.00	%	41,778		14.400064		601,606	0.37	%	24.23	%
2004	0.50	%	65,614		20.546330		1,348,127	0.37	%	23.61	%
2004	0.80	%	134,666		24.559747		3,307,363	0.37	%	23.24	%
2004	1.30	%	60,654		21.400584		1,298,031	0.37	%	22.63	%
Van Kampen UIF - Core Plus Fixed Income Portfolio - Class I (MSVFI)
2008	0.00	%	6,559		10.933218		71,711	4.73	%	-10.20	%
2008	0.50	%	60,672		10.627725		644,805	4.73	%	-10.65	%
2008	0.80	%	4,469		10.448514		46,694	4.73	%	-10.92	%
2007	0.00	%	1,932		12.175696		23,523	3.05	%	5.45	%
2007	0.50	%	34,752		11.894818		413,369	3.05	%	4.92	%
2007	0.80	%	10,704		11.729400		125,551	3.05	%	4.61	%
2006	0.00	%	1,480		11.546094		17,088	3.94	%	3.73	%
2006	0.50	%	13,740		11.336567		155,764	3.94	%	3.22	%
2006	0.80	%	15,064		11.212678		168,908	3.94	%	2.91	%
2005	0.00	%	1,144		11.130805		12,734	3.62	%	4.21	%
2005	0.50	%	10,072		10.983426		110,625	3.62	%	3.70	%
2005	0.80	%	22,076		10.895944		240,539	3.62	%	3.39	%
2004	0.00	%	622		10.680729		6,643	4.78	%	4.37	%
2004	0.50	%	3,084		10.591991		32,666	4.78	%	3.85	%
2004	0.80	%	15,460		10.539104		162,935	4.78	%	3.54	%
Van Kampen UIF - Emerging Markets Debt Portfolio - Class I (MSEM)
2008	0.00	%	13,545		19.423315		263,089	7.05	%	-14.98	%
2008	0.50	%	55,882		18.286566		1,021,890	7.05	%	-15.40	%
2008	0.80	%	10,382		17.721099		183,980	7.05	%	-15.65	%
2008	1.00	%	6,634		17.732649		117,638	7.05	%	-15.82	%
2007	0.00	%	11,312		22.844597		258,418	7.41	%	6.53	%
2007	0.50	%	69,830		21.615486		1,509,409	7.41	%	6.00	%
2007	0.80	%	20,760		21.010045		436,169	7.41	%	5.68	%
2007	1.00	%	7,184		21.065858		151,337	7.41	%	5.47	%
2006	0.00	%	34,466		21.443912		739,086	7.72	%	10.81	%
2006	0.50	%	51,120		20.392381		1,042,459	7.72	%	10.26	%
2006	0.80	%	31,246		19.881064		621,204	7.72	%	9.93	%
2006	1.00	%	3,962		19.973989		79,137	7.72	%	9.71	%
2005	0.00	%	37,616		19.352478		727,963	7.52	%	12.25	%

(Continued)

116

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***		Initial Offering Date^
2005	0.50	%	28,944	$	18.495488	$	535,333	7.52	%	11.69	%
2005	0.80	%	68,904		18.085748		1,246,180	7.52	%	11.36	%
2005	1.00	%	8,002		18.206549		145,689	7.52	%	11.14	%
2005	1.30	%	374		17.336446		6,484	7.52	%	10.81	%
2004	0.00	%	37,346		17.240440		643,861	6.41	%	10.06	%
2004	0.50	%	16,150		16.559313		267,433	6.41	%	9.51	%
2004	0.80	%	74,670		16.240956		1,212,712	6.41	%	9.19	%
2004	1.30	%	12,540		15.645892		196,199	6.41	%	8.64	%
Van Kampen UIF - U.S. Real Estate Portfolio - Class I (MSVRE)
2008	0.00	%	35,291		30.898769		1,090,448	3.46	%	-37.89	%
2008	0.50	%	164,177		31.774120		5,216,580	3.46	%	-38.20	%
2008	0.80	%	48,939		30.885042		1,511,483	3.46	%	-38.39	%
2008	1.00	%	41,815		16.065985		671,799	3.46	%	-38.51	%
2007	0.00	%	38,256		49.750947		1,903,272	1.10	%	-17.07	%
2007	0.50	%	173,362		51.418211		8,913,964	1.10	%	-17.49	%
2007	0.80	%	84,232		50.130463		4,222,589	1.10	%	-17.74	%
2007	1.00	%	39,508		26.129688		1,032,332	1.10	%	-17.90	%
2006	0.00	%	45,458		59.991892		2,727,111	1.08	%	38.04	%
2006	0.50	%	158,492		62.315078		9,876,441	1.08	%	37.36	%
2006	0.80	%	195,750		60.938109		11,928,635	1.08	%	36.95	%
2006	1.00	%	73,408		31.826979		2,336,355	1.08	%	36.68	%
2005	0.00	%	49,280		43.458397		2,141,630	1.22	%	17.05	%
2005	0.50	%	94,426		45.366664		4,283,793	1.22	%	16.47	%
2005	0.80	%	267,504		44.496942		11,903,110	1.22	%	16.12	%
2005	1.00	%	63,520		23.286362		1,479,150	1.22	%	15.89	%
2005	1.30	%	7,386		42.223333		311,862	1.22	%	15.54	%
2004	0.00	%	57,878		37.127644		2,148,874	1.55	%	36.39	%
2004	0.50	%	69,458		38.951553		2,705,497	1.55	%	35.71	%
2004	0.80	%	332,014		38.319214		12,722,516	1.55	%	35.31	%
2004	1.30	%	39,270		36.542922		1,435,041	1.55	%	34.63	%
Wells Fargo AVT - Discovery Fund(SM) (SVDF)
2008	0.00	%	11,945		16.173785		193,196	0.00	%	-44.36	%
2008	0.50	%	133,624		25.136864		3,358,888	0.00	%	-44.63	%
2008	0.80	%	35,861		24.548248		880,325	0.00	%	-44.80	%
2008	1.00	%	23,353		10.785912		251,883	0.00	%	-44.91	%
2007	0.00	%	14,270		29.066542		414,780	0.00	%	22.32	%
2007	0.50	%	135,048		45.401702		6,131,409	0.00	%	21.71	%
2007	0.80	%	44,382		44.472235		1,973,767	0.00	%	21.34	%
2007	1.00	%	25,612		19.579303		501,465	0.00	%	21.10	%
2006	0.00	%	14,944		23.762009		355,099	0.00	%	14.64	%
2006	0.50	%	128,414		37.303028		4,790,231	0.00	%	14.07	%
2006	0.80	%	70,852		36.649699		2,596,704	0.00	%	13.73	%
2006	1.00	%	25,940		16.167820		419,393	0.00	%	13.51	%
2006	1.30	%	468		34.057941		15,939	0.00	%	13.17	%
2005	0.00	%	16,270		20.726714		337,224	0.00	%	8.27	%
2005	0.50	%	83,820		32.700726		2,740,975	0.00	%	7.73	%
2005	0.80	%	130,268		32.224282		4,197,793	0.00	%	7.41	%
2005	1.00	%	30,292		14.243955		431,478	0.00	%	7.20	%
2005	1.30	%	2,946		30.095203		88,660	0.00	%	6.88	%
2004	0.00	%	17,898		19.143146		342,624	0.00	%	15.72	%
2004	0.50	%	50,972		30.353233		1,547,165	0.00	%	15.14	%

(Continued)

117

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***		Initial Offering Date^
2004	0.80	%	194,396	$	30.000581	$	5,831,993	0.00	%	14.80	%
2004	1.30	%	20,844		28.158423		586,934	0.00	%	14.22	%
Wells Fargo AVT - Opportunity Fund(SM) (SVOF)
2008	0.00	%	47,683		19.467920		928,289	1.89	%	-40.10	%
2008	0.50	%	285,615		36.289861		10,364,929	1.89	%	-40.40	%
2008	0.80	%	117,513		35.440201		4,164,684	1.89	%	-40.58	%
2008	1.00	%	137,269		8.187802		1,123,931	1.89	%	-40.69	%
2007	0.00	%	55,488		32.499052		1,803,307	0.61	%	6.63	%
2007	0.50	%	313,396		60.885541		19,081,285	0.61	%	6.10	%
2007	0.80	%	145,372		59.639193		8,669,869	0.61	%	5.78	%
2007	1.00	%	146,392		13.806187		2,021,115	0.61	%	5.57	%
2006	0.00	%	63,616		30.477301		1,938,844	0.00	%	12.22	%
2006	0.50	%	290,006		57.385680		16,642,192	0.00	%	11.66	%
2006	0.80	%	232,092		56.380823		13,085,538	0.00	%	11.33	%
2006	1.00	%	160,034		13.078165		2,092,951	0.00	%	11.11	%
2006	1.30	%	448		52.395225		23,473	0.00	%	10.77	%
2005	0.00	%	70,754		27.158853		1,921,597	0.00	%	7.88	%
2005	0.50	%	200,868		51.392952		10,323,199	0.00	%	7.35	%
2005	0.80	%	373,488		50.644296		18,915,037	0.00	%	7.03	%
2005	1.00	%	179,860		11.770963		2,117,125	0.00	%	6.81	%
2005	1.30	%	6,228		47.299447		294,581	0.00	%	6.50	%
2004	0.00	%	85,426		25.174087		2,150,522	0.00	%	18.22	%
2004	0.50	%	143,178		47.875122		6,854,664	0.00	%	17.63	%
2004	0.80	%	515,136		47.318990		24,375,715	0.00	%	17.28	%
2004	1.30	%	58,418		44.414552		2,594,609	0.00	%	16.69	%
2008	Contract owners’ equity					$	566,826,718
2007	Contract owners’ equity					$	1,012,602,409
2006	Contract owners’ equity					$	980,827,120
2005	Contract owners’ equity					$	929,399,760
2004	Contract owners’ equity					$	915,627,476

* This represents the annual contract expense rate of the variable account for the period indicated and includes only those expenses that are charged through a reduction in the unit values. Excluded are expenses of the underlying mutual funds and charges made directly to contract owner accounts through the redemption of units.

** This represents the dividends for the period indicated, excluding distributions of capital gains, received by the subaccount from the underlying mutual fund, net of management fees assessed by the fund manager, divided by average net assets. The ratios exclude those expenses, such as policy and asset charges, that result in direct reductions to the contractholder accounts either through reductions in the 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 and includes a deduction only for expenses assessed through a reduction in the unit values. 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. Total return is not annualized if the underlying mutual fund option is initially offered, funded, or both, during the period presented.

^ This represents the date the underlying mutual fund option was initially added and funded. Total returns presented in years of initial offering represent the return for the period from the initial offering through year end.

118

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, 2008, 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, 2008, 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, 2008, and the results of their operations, changes in contract owners’ equity, and financial highlights for each of the periods indicated herein, in conformity with accounting principles generally accepted in the United States of America.

/s/    KPMG LLP

Columbus, Ohio

March 13, 2009