Supplement to Prospectus Dated May 3, 1999
                        Supplement dated August 30, 1999

This Supplement should be retained with the current Prospectus for your variable
annuity  contract  issued  by  American   Skandia  Life  Assurance   Corporation
("American  Skandia").  If you do not have a current prospectus,  please contact
American Skandia at 1-800-SKANDIA.

The following  provision is added to the section of the Prospectus entitled "How
Do I Receive Credits?"

Credits Applied to Purchase Payments for Designated Class of Annuity Owner
Where allowed by state law, on Annuities  owned by a member of the class defined
below the table of Credits we apply to Purchase Payments is deleted.  The Credit
applied to all Purchase Payments on such Annuities will be 8.5%

The  designated  class of  Annuity  Owners  includes:  (a) any  parent  company,
affiliate or subsidiary of ours; (b) an officer,  director,  employee,  retiree,
sales representative, or in the case of an affiliated broker-dealer,  registered
representative  of such  company;  (c) a  director,  officer  or  trustee of any
underlying  mutual fund;  (d) a director,  officer or employee of any investment
manager,   sub-advisor,   transfer   agent,   custodian,   auditing,   legal  or
administrative  services  provider  that  is  providing  investment  management,
advisory, transfer agency, custodianship,  auditing, legal and/or administrative
services to an  underlying  mutual  fund or any  affiliate  of such firm;  (e) a
director,  officer,  employee or registered representative of a broker-dealer or
insurance  agency that has a then current selling  agreement with us and/or with
American Skandia Marketing,  Incorporated;  (f) a director, officer, employee or
authorized  representative  of any  firm  providing  us or our  affiliates  with
regular  legal,  actuarial,  auditing,  underwriting,   claims,  administrative,
computer  support,  marketing,  office or other  services;  (g) the then current
spouse of any such person  noted in (b) through (f),  above;  (h) the parents of
any such person noted in (b) through (g), above; (i) such person's child(ren) or
other  legal  dependent  under the age of 21; and (j) the  siblings  of any such
persons noted in (b) through (h) above.

American  Skandia  retains  the right to recover  the  amount of any  Credits as
described in the Prospectus. All other terms and conditions of the Annuity apply
to  Owners  in the  designated  class,  except  that we  will  not  provide  any
Additional Amounts for any such contracts (see "Additional  Amounts in the Fixed
Allocations").  Any Target Value Credits applied under the Performance Advantage
benefit are not  affected by an Owner's  inclusion  in the  designated  class of
Annuity Owners.

You must  notify us at the time you apply for an  Annuity if you are a member of
the designated class. American Skandia is not responsible for monitoring whether
you qualify as a member of the designated  class.  Failure to inform us that you
qualify as a member of the designated class may result in your Annuity receiving
fewer Credits than would otherwise be applied to your Annuity.

The  following  is  added  to  the  section  of  the  Prospectus  entitled  "Who
distributes Annuities offered by American Skandia?"

No compensation is payable on Annuity's  purchased by a member of the designated
class of Owners (see section  above  "Credits  Applied to Purchase  Payments for
Designated Class of Annuity Owner").