American Skandia Life Assurance Corporation Variable Account B

Approximate date of commencement of proposed sale to the public: May 1, 2006 or as soon as practicable after the effective date of this Registration Statement

If any of the securities being registered on this form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than securities offered only in connection with dividend or reinvestment plans, check the following: x.




                                    AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
                                                 A Prudential Financial Company
                                One Corporate Drive, Shelton, Connecticut 06484

AMERICAN SKANDIA ADVISOR PLANSM III ("ASAP III")
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AMERICAN SKANDIA APEX(R) II ("APEX II")
</R>
AMERICAN SKANDIA XTRA CREDITSM SIX ("XT6")
AMERICAN SKANDIA LIFEVEST(R) II ("ASL II")

Flexible Premium Deferred Annuities

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PROSPECTUS: MAY 1, 2 0 0 6

This prospectus describes four different flexible premium deferred annuities
(the "Annuities" or the "Annuity") offered by American Skandia Life Assurance
Corporation ("American Skandia", "we", "our", or "us"). Each Annuity may be
offered as an individual annuity contract or as an interest in a group annuity.
Each Annuity has different features and benefits that may be appropriate for
you based on your financial situation, your age and how you intend to use the
Annuity. This Prospectus describes the important features of the Annuities and
what you should consider before purchasing one of the Annuities. The Prospectus
also describes differences among the Annuities which include differences in the
fees and charges you pay and variations in some product features such as the
availability of certain bonus amounts and basic death benefit protection. These
differences among the products are discussed more fully in the Prospectus and
summarized in Appendix F entitled "Selecting the Variable Annuity That's Right
for You". There may also be differences in the compensation paid to your
Financial Professional for each Annuity. In addition, selling broker-dealer
firms through which each Annuity is sold may decline to make available to their
customers certain of the optional features offered generally under the Annuity.
Alternatively, such firms may restrict the availability of the optional
benefits that they do make available to their customers (e.g., by imposing a
lower maximum issue age for certain optional benefits than what is prescribed
generally under the Annuity). Please speak to your registered representative
for further details. Each Annuity or certain of its investment options and/or
features may not be available in all states. Various rights and benefits may
differ between states to meet applicable laws and/or regulations. For more
information about variations applicable to your state, please refer to your
Annuity contract or consult your Financial Professional. Certain terms are
capitalized in this Prospectus. Those terms are either defined in the Glossary
of Terms or in the context of the particular section.
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The Sub-accounts
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Each Sub-account of American Skandia Life Assurance Corporation Variable
Account B invests in an underlying mutual fund portfolio. Currently, portfolios
of the following underlying mutual funds are being offered: AIM Variable
Insurance Funds, American Skandia Trust, Evergreen Variable Annuity Trust,
First Defined Portfolio Fund LLC, Gartmore Variable Insurance Trust, ProFunds
VP, The Prudential Series Fund and Wells Fargo Variable Trust. See the
following page for the complete list of Sub-accounts.
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Please Read This Prospectus
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Please read this Prospectus and the current prospectus for the underlying
mutual funds. Keep them for future reference. If you are purchasing one of the
Annuities as a replacement for an existing variable annuity or variable life
coverage or a fixed insurance policy, you should consider any surrender or
penalty charges you may incur when replacing your existing coverage and that
this Annuity may be subject to a contingent deferred sales charge if you elect
to surrender the Annuity or take a partial withdrawal. You should consider your
need to access the Annuity's Account Value and whether the Annuity's liquidity
features will satisfy that need.

Available Information
--------------------------------------------------------------------------------
We have also filed a Statement of Additional Information that is available from
us, without charge, upon your request. The contents of the Statement of
Additional Information are described on page 107. This Prospectus is part of
the registration statement we filed with the SEC regarding this offering.
Additional information on us and this offering is available in the registration
statement and the exhibits thereto. You may review and obtain copies of these
materials at the prescribed rates from the SEC's Public Reference Section, 100
F Street N.E., Washington, D.C., 20549. (See SEC file number 333-96577 for ASAP
III, 333-71654 for APEX II, 333-71834 for XT6 and 333-71672 for ASL II). These
documents, as well as documents incorporated by reference, may also be obtained
through the SEC's Internet Website (http://www.sec.gov) for this registration
statement as well as for other registrants that file electronically with the
SEC.
For Further Information call:
--------------------------------------------------------------------------------

  1-800-752-6342
These annuities are NOT deposits or obligations of, or issued, guaranteed or
endorsed by, any bank, are NOT insured or guaranteed by the U.S. government,
the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board or
any other agency. An investment in an annuity involves investment risks,
including possible loss of value, even with respect to amounts allocated to the
AST Money Market Sub-account.
These securities have not been approved or disapproved by the Securities and
Exchange Commission or any state securities commission nor has the Commission
or any state securities commission passed upon the accuracy or adequacy of this
Prospectus. Any representation to the contrary is a criminal offense.
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American Skandia Advisor Plan III/SM/, American Skandia APEX(R) II/SM/,
American Skandia XTra Credit SIX/SM/ and American Skandia LifeVest(R) II are
service marks or registered trademarks of The Prudential Insurance Company of
America and are used under license by its affiliates.
</R>

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Prospectus Dated: May 1, 2006 Statement of Additional Information Dated: May 1, 2006
COREPROS0506                                     ASAP3SAI, APEX2SAI, XT6SAI, ASL2SAI
</R>
<R>
 PLEASE SEE OUR PRIVACY POLICY AND OUR IRA, ROTH IRA AND FINANCIAL DISCLOSURE
           STATEMENTS ATTACHED TO THE BACK COVER OF THIS PROSPECTUS.
</R>




                              INVESTMENT OPTIONS

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AMERICAN SKANDIA TRUST
  AST Advanced Strategies
  AST Aggressive Asset Allocation
  AST AllianceBernstein Core Value
  AST AllianceBernstein Managed Index 500
  AST AllianceBernstein Growth & Income
  AST American Century Income & Growth
  AST American Century Strategic Balanced
  AST Balanced Asset Allocation
  AST Capital Growth Asset Allocation
  AST Cohen & Steers Realty
  AST Conservative Asset Allocation
  AST DeAM Large-Cap Value
  AST DeAM Small-Cap Growth
  AST DeAM Small-Cap Value
  AST Federated Aggressive Growth
  AST First Trust Balanced Target
  AST First Trust Capital Appreciation Target
  AST Global Allocation
  AST Goldman Sachs Concentrated Growth
  AST Goldman Sachs Mid-Cap Growth
  AST Goldman Sachs Small-Cap Value
  AST High Yield
  AST JPMorgan International Equity
  AST Large-Cap Value
  AST Lord Abbett Bond Debenture
  AST LSV International Value
  AST Marsico Capital Growth
  AST MFS Global Equity
  AST MFS Growth
  AST Mid-Cap Value
  AST Money Market
  AST Neuberger Berman Mid-Cap Growth
  AST Neuberger Berman Mid-Cap Value
  AST PIMCO Limited Maturity Bond
  AST PIMCO Total Return Bond
  AST Preservation Asset Allocation
  AST Small-Cap Growth
  AST Small-Cap Value
  AST T. Rowe Price Asset Allocation
  AST T. Rowe Price Large-Cap Growth
  AST T. Rowe Price Global Bond
  AST T. Rowe Price Natural Resources
  AST William Blair International Growth

AIM VARIABLE INSURANCE FUNDS
  AIM V.I. Dynamics Fund -- Series I shares
  AIM V.I. Financial Services Fund -- Series I shares
  AIM V.I. Global Health Care Fund -- Series I shares
  AIM V.I. Technology Fund -- Series I shares

EVERGREEN VARIABLE ANNUITY TRUST
  Growth
  International Equity
  Omega
</R>

<R>
FIRST DEFINED PORTFOLIO FUND, LLC
  First Trust(R) 10 Uncommon Values
  Global Dividend Target 15
  NASDAQ(R) Target 15
  S&P(R) Target 24
  Target Managed VIP
  The Dow Target Dividend
  The Dow/SM/ DART 10
  Value Line(R) Target 25

GARTMORE VARIABLE INSURANCE TRUST
  GVIT Developing Markets

PROFUND VP
  Access VP High Yield
  Asia 30
  Banks
  Basic Materials
  Bear
  Biotechnology
  Bull
  Consumer Goods
  Consumer Services
  Europe 30
  Financials
  Health Care
  Industrials
  Internet
  Japan
  Large-Cap Growth
  Large-Cap Value
  Mid-Cap Growth
  Mid-Cap Value
  Oil & Gas
  OTC
  Pharmaceuticals
  Precious Metals
  Real Estate
  Rising Rates Opportunity
  Semiconductor
  Short Mid-Cap
  Short OTC
  Short Small-Cap
  Small-Cap Growth
  Small-Cap Value
  Technology
  Telecommunications
  U.S. Government Plus
  UltraBull
  UltraMid-Cap
  UltraOTC
  UltraSmall-Cap
  Utilities

THE PRUDENTIAL SERIES FUND
  SP William Blair International Growth

WELLS FARGO VARIABLE TRUST
  Wells Fargo Advantage VT Equity Income
</R>

Contents

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Introduction................................................................................ 1
Why Would I Choose to Purchase One of the Annuities?....................................... 1
What Are Some of the Key Features of the Annuities?........................................ 1
How Do I Purchase One of the Annuities?.................................................... 2
Glossary of Terms........................................................................... 3
Summary of Contract Fees and Charges........................................................ 5
Expense Examples............................................................................ 15
Investment Options.......................................................................... 16
What are the Investment Objectives and Policies of the Portfolio?.......................... 16
What are the Fixed Allocations?............................................................ 36
Fees and Charges............................................................................ 37
What are the Contract Fees and Charges?.................................................... 37
What Charges Apply to the Fixed Allocations?............................................... 39
What Charges Apply if I Choose an Annuity Payment Option?.................................. 39
Exceptions/Reductions to Fees and Charges.................................................. 39
Purchasing Your Annuity..................................................................... 40
What are Our Requirements for Purchasing One of the Annuities?............................. 40
Managing Your Annuity....................................................................... 41
May I Change the Owner, Annuitant and Beneficiary Designations?............................ 41
May I Return My Annuity if I Change My Mind?............................................... 41
May I Make Additional Purchase Payments?................................................... 41
May I Make Scheduled Payments Directly from My Bank Account?............................... 42
May I Make Purchase Payments Through a Salary Reduction Program?........................... 42
Managing Your Account Value................................................................. 43
How and When are Purchase Payments Invested?............................................... 43
How Do I Receive a Loyalty Credit Under the ASAP III and APEX II Annuity?.................. 43
How Are Loyalty Credits Applied to My Account Value Under the ASAP III and APEX II Annuity? 43
How Do I Receive Credits Under the XT6 Annuity?............................................ 44
How Are Credits Applied to Account Value Under the XT6 Annuity?............................ 44
Are There Restrictions or Charges on Transfers Between Investment Options?................. 45
Do You Offer Dollar Cost Averaging?........................................................ 47
Do You Offer Any Automatic Rebalancing Programs?........................................... 48
Are Any Asset Allocation Programs Available?............................................... 48
Do You Offer Programs Designed to Guarantee a "Return of Premium" at a Future Date?........ 48
May I Give My Financial Professional Permission to Forward Transaction Instructions?....... 49
May I Authorize My Third Party Investment Advisor to Manage My Account?.................... 49
How Do the Fixed Allocations Work?......................................................... 50
How Do You Determine Rates for Fixed Allocations?.......................................... 51
How Does the Market Value Adjustment Work?................................................. 51
What Happens When My Guarantee Period Matures?............................................. 52
Access To Account Value..................................................................... 53
What Types of Distributions are Available to Me?........................................... 53
Are There Tax Implications for Distributions?.............................................. 53
Can I Withdraw a Portion of My Annuity?.................................................... 53
How Much Can I Withdraw as a Free Withdrawal?.............................................. 54
Can I Make Periodic Withdrawals from My Annuity During the Accumulation Period?............ 54
Do You Offer a Program for Withdrawals Under Sections 72(t)/72(q) of the Internal Revenue
Code?.................................................................................... 54
What are Minimum Distributions and When Would I Need to Make Them?......................... 54
Can I Surrender My Annuity for Its Value?.................................................. 55
What is a Medically-Related Surrender and How Do I Qualify?................................ 55
</R>

(i)

Contents

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What Types of Annuity Options are Available?............................................. 55
How and When Do I Choose the Annuity Payment Option?..................................... 57
How are Annuity Payments Calculated?..................................................... 57
Living Benefit Programs................................................................... 59
Do You Offer Programs Designed to Provide Investment Protection for Owners While They are
Alive?................................................................................. 59
Guaranteed Return Option Plus/SM/ (GRO Plus/SM/)......................................... 59
Guaranteed Return Option (GRO)........................................................... 64
Guaranteed Minimum Withdrawal Benefit (GMWB)............................................. 67
Guaranteed Minimum Income Benefit (GMIB)................................................. 71
Lifetime Five/SM/ Income Benefit (Lifetime Five)......................................... 76
Spousal Lifetime Five Income Benefit (Spousal Lifetime Five)............................. 81
Death Benefit............................................................................. 86
What Triggers the Payment of a Death Benefit?............................................ 86
Basic Death Benefit...................................................................... 86
Optional Death Benefits.................................................................. 86
American Skandia's Annuity Rewards....................................................... 91
Payment of Death Benefits................................................................ 91
Valuing Your Investment................................................................... 94
How is My Account Value Determined?...................................................... 94
What is the Surrender Value of My Annuity?............................................... 94
How and When Do You Value the Sub-Accounts?.............................................. 94
How Do You Value Fixed Allocations?...................................................... 94
When Do You Process and Value Transactions?.............................................. 94
What Happens to My Units When There is a Change in Daily Asset-Based Charges?............ 96
Tax Considerations........................................................................ 97
General Information....................................................................... 104
How Will I Receive Statements and Reports?............................................... 104
Who is American Skandia?................................................................. 104
What are Separate Accounts?.............................................................. 104
What is the Legal Structure of the Underlying Funds?..................................... 106
Who Distributes Annuities Offered by American Skandia?................................... 107
Incorporation of Certain Documents by Reference.......................................... 108
Financial Statements..................................................................... 108
How to Contact Us........................................................................ 108
Indemnification.......................................................................... 109
Legal Proceedings........................................................................ 109
Contents of the Statement of Additional Information...................................... 110
Appendix A -- Condensed Financial Information About Separate Account B.................... A-1
Appendix B -- Calculation of Optional Death Benefits...................................... B-1
Appendix C -- Plus40/TM/ Optional Life Insurance Rider.................................... C-1
Appendix D -- Additional Information on Asset Allocation Programs......................... D-1
Appendix E -- Description and Calculation of Previously Offered Optional E-1
Death Benefits...............................................................
Appendix F -- Selecting the Variable Annuity That's Right for You......................... F-1
</R>

(ii)




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Introduction

Why Would I Choose to Purchase One of the Annuities?
--------------------------------------------------------------------------------
The Annuities are frequently used for retirement planning because they allow
you to accumulate retirement savings and also offer annuity payment options
when you are ready to begin receiving income. Each Annuity also offers a choice
of different optional benefits, for an additional charge, that can provide
principal protection or guaranteed minimum income protection for Owners while
they are alive and one or more Death Benefits that can protect your retirement
savings if you die during a period of declining markets. Each Annuity may be
used as an investment vehicle for "qualified" investments, including an IRA,
SEP-IRA, Roth IRA, Section 401(a) plans (defined benefit plans and defined
contribution plans such as 401(k), profit sharing and money purchase plans) or
Tax Sheltered Annuity (or 403(b)). Each Annuity may also be used as an
investment vehicle for "non-qualified" investments. Each Annuity allows you to
invest your money in a number of Sub-accounts as well as in one or more Fixed
Allocations. This Prospectus describes four different Annuities including
features that these Annuities have in common as well as differences. For a
summary of each Annuity's features, please refer to Appendix F entitled,
"Selecting the Variable Annuity That's Right for You."

<R>
When an Annuity is purchased as a "non-qualified" investment, you generally are
not taxed on any investment gains the Annuity earns until you make a withdrawal
or begin to receive annuity payments. This feature, referred to as
"tax-deferral", can be beneficial to the growth of your Account Value because
money that would otherwise be needed to pay taxes on investment gains each year
remains invested and can earn additional money. However, because the Annuity is
designed for long-term retirement savings, a 10% penalty tax may be applied on
withdrawals you make before you reach age 59 1/2. Annuities purchased as a
non-qualified investment are not subject to the maximum contribution limits
that may apply to a qualified investment, and are not subject to required
minimum distributions after age 70 1/2.

When an Annuity is purchased as a "qualified" investment, you should consider
that the Annuity does not provide any tax advantages in addition to the
preferential treatment already available through your retirement plan under the
Internal Revenue Code. In other words, you need not invest in an Annuity to
gain the preferential tax treatment provided by your retirement plan. An
Annuity, however, may offer features and benefits in addition to providing tax
deferral that other investment vehicles may not offer, including Death Benefit
protection for your beneficiaries, lifetime income options and the ability to
make transfers between numerous variable investment options offered under the
Annuity. You should consult with your Financial Professional as to whether the
overall benefits and costs of the Annuity are appropriate considering your
overall financial plan.
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What Are Some of the Key Features of the Annuities?
--------------------------------------------------------------------------------
. Each Annuity is a "flexible premium deferred annuity." It is called "flexible
  premium" because you have considerable flexibility in the timing and amount
  of Purchase Payments. Generally, investors "defer" receiving annuity payments
  until after an accumulation period.

. Each Annuity offers both Sub-accounts and Fixed Allocations. If you allocate
  your Account Value to Sub-accounts, the value of your Annuity will vary daily
  to reflect the investment performance of the underlying investment options.
  Fixed Allocations of different durations are offered that are guaranteed by
  us, but may have a Market Value Adjustment if you withdraw or transfer your
  Account Value before the Maturity Date.

. Each Annuity features two distinct periods -- the accumulation period and the
  payout period. During the accumulation period your Account Value is allocated
  to one or more investment options.

. During the payout period, commonly called "annuitization," you can elect to
  receive annuity payments (1) for life; (2) for life with a guaranteed minimum
  number of payments; (3) based on joint lives; or (4) for a guaranteed number
  of payments. We currently make annuity payments available on a fixed or
  variable basis. Variable payment options are made available through a
  different contract and prospectus.

. Each Annuity offers optional income benefits, for an additional charge, that
  can provide principal protection or guaranteed minimum income protection for
  Owners while they are alive.

. Each Annuity offers a basic Death Benefit. It also offers optional Death
  Benefits that provide an enhanced level of protection for your
  beneficiary(ies) for an additional charge.

. You are allowed to withdraw a limited amount of money from each Annuity on an
  annual basis without any charges, although any optional guaranteed benefit
  you elect may be reduced. Other product features allow you to access your
  Account Value as necessary, although a charge may apply.

. Transfers between investment options are tax-free. Currently, you may make
  twenty transfers each year free of charge. We also offer several programs
  that enable you to manage your Account Value as your financial needs and
  investment performance change.


                                      1




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Introduction continued

WITH RESPECT TO XT6 ONLY:
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. If you purchase this Annuity, we apply an additional amount (referred to as
  an XTra Credit/SM/, Purchase Credit or Credit) to your Account Value with
  each Purchase Payment you make, including your initial Purchase Payment and
  any additional Purchase Payments during the first six Annuity Years.
. Please note that during the first 10 years, the total asset-based charges on
  the XT6 Annuity are higher than many of our other annuities. In addition, the
  Contingent Deferred Sales Charge (CDSC) on the XT6 Annuity is higher and is
  deducted for a longer period of time as compared to our other annuities. The
  XTra Credit/SM/ amount is included in your Account Value. However, American
  Skandia may take back all XTra Credit amounts if you return your Annuity
  under the "free-look" provision. In addition, American Skandia may take back
  XTra Credits associated with any Purchase Payment if (a) the XTra Credit was
  applied within twelve (12) months prior to the death of the Owner (or
  Annuitant if entity-owned) or (b) the XTra Credit was applied within 12
  months prior to a request to surrender the Annuity under the
  medically-related surrender provision. If you qualify for the 6.5% Xtra
  Credit in the first year (for annuities issued on or after February 13, 2006,
  subject to state availability), only 6% of that amount will be taken back
  upon death or medically-related surrender request, both as described above.
  However, we will take back the entire 6.5% if you "free-look" your Annuity.
. In these situations, your Account Value could be substantially reduced. The
  amount we take back will equal the XTra Credit, without adjustment up or down
  for investment performance. Therefore, any gain on the XTra Credit amount
  will not be taken back. But if there was a loss on the XTra Credit, the
  amount we take back will still equal amount of the XTra Credit. Additional
  conditions and restrictions apply. We do not deduct a CDSC in any situation
  where we take back the XTra Credit amount.
. If replacing an annuity, please consider all charges associated with that
  annuity. Credits applicable to bonus products should not be viewed as an
  offset of any surrender charge that applies to any annuity contract you
  currently own. For more information on all available annuities, please see
  Appendix F of this prospectus.
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WITH RESPECT TO APEX II ONLY:
. For annuities issued on or after June 20, 2005 (subject to state
  availability) this Annuity offers a Loyalty Credit which we add to your
  Account Value with respect to Purchase Payments that have been made during
  the first four Annuity Years less withdrawals through the fifth Annuity
  Anniversary, subject to our rules and State availability.
WITH RESPECT TO ASAP III ONLY:
. For annuities issued on or after February 13, 2006 (subject to state
  availability) this Annuity offers a Loyalty Credit which we add to your
  Account Value with respect to Purchase Payments that have been made during
  the first four Annuity Years less withdrawals through the fifth Annuity
  Anniversary, subject to our rules and State availability.
How Do I Purchase One of the Annuities?
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We sell each Annuity through licensed, registered Financial Professionals.
Unless we agree otherwise and subject to our rules, each Annuity has minimum
initial Purchase Payments as follows: $1,000 for ASAP III, $10,000 for XT6 and
APEX II, and $15,000 for ASL II. We may allow you to make a lower initial
Purchase Payment provided you establish an electronic funds transfer under
which Purchase Payments received in the first Annuity Year total at least the
minimum initial Purchase Payment for the Annuity purchased. Unless we agree
otherwise and subject to our rules, if the Annuity is owned by an individual or
individuals, the oldest of those Owners must not be older than a maximum issue
age as of the Issue Date of the Annuity as follows: age 80 for ASAP III, age 75
for XT6 and age 85 for APEX II. For ASL II, there is no maximum issue age,
however the basic death benefit provides greater protection for Owners under
age 85. If the Annuity is owned by an entity, the annuitant must not be older
than the maximum issue age, as of the Issue Date of the Annuity unless we agree
otherwise. The availability and level of protection of certain optional
benefits may vary based on the age of the Owner on the Issue Date of the
Annuity, the date the benefit is elected, or the date of the Owner's death.
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                                      2




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Glossary of Terms

Many terms used within this Prospectus are described within the text where they
appear. The description of those terms are not repeated in this Glossary of
Terms.
ACCOUNT VALUE
<R>
The value of each allocation to a Sub-account (also referred to as a "variable
investment option") or a Fixed Allocation prior to the Annuity Date, plus any
earnings, and/or less any losses, distributions and charges. The Account Value
is calculated before we assess any applicable Contingent Deferred Sales Charge
("CDSC" or "surrender charge") and/or, other than on a contract anniversary,
any fee that is deducted from the contract annually in arrears. The Account
Value is determined separately for each Sub-account and for each Fixed
Allocation, and then totaled to determine the Account Value for your entire
Annuity. The Account Value of each Fixed Allocation on other than its Maturity
Date may be calculated using a market value adjustment. With respect to XT6,
the Account Value includes any Credits we applied to your Purchase Payments
that we are entitled to take back under certain circumstances. With respect to
ASAP III and APEX II, the Account Value includes any Loyalty Credit we apply.
</R>

ANNUITIZATION
The application of Account Value (or Protected Income Value for the Guaranteed
Minimum Income Benefit, if applicable) to one of the available annuity options
for the Annuitant to begin receiving periodic payments for life (or joint
lives), for a guaranteed minimum number of payments or for life with a
guaranteed minimum number of payments.

ANNUITY DATE
The date you choose for annuity payments to commence. A maximum Annuity Date
may apply.

ANNUITY YEAR
A 12-month period commencing on the Issue Date of the Annuity and each
successive 12-month period thereafter.

CODE
The Internal Revenue Code of 1986, as amended from time to time.

<R>
COMBINATION 5% ROLL-UP AND HAV DEATH BENEFIT
We offer an Optional Death Benefit that, for an additional cost, provides an
enhanced level of protection for your beneficiary(ies) by providing the greater
of the Highest Anniversary Value Death Benefit and a 5% annual increase on
Purchase Payments adjusted for withdrawals.

CONTINGENT DEFERRED SALES CHARGE (CDSC)
This is a sales charge that may be deducted when you make a full or partial
withdrawal under your Annuity. We refer to this as a "contingent" charge
because it is imposed only if you make a withdrawal. The charge is a percentage
of each applicable Purchase Payment that is being withdrawn. The period during
which a particular percentage applies is measured from the effective date of
each Purchase Payment. The amount and duration of the CDSC varies among the X
Series, L Series, and B Series. See "Summary of Contract Fees and Charges" for
details on the CDSC for each Annuity.
</R>

<R>
ENHANCED BENEFICIARY PROTECTION DEATH BENEFIT
We offer an Optional Death Benefit that, for an additional cost, provides an
enhanced level of protection for your beneficiary(ies) by providing amounts in
addition to the basic Death Benefit that can be used to offset federal and
state taxes payable on any taxable gains in your Annuity at the time of your
death.
</R>

FIXED ALLOCATION
An investment option that offers a fixed rate of interest for a specified
Guarantee Period during the accumulation period.

<R>
FREE LOOK
Under state insurance laws, you have the right, during a limited period of
time, to examine your Annuity and decide if you want to keep it. This right is
referred to as your "free look" right. The length of this time period depends
on the law of your state, and may vary depending on whether your purchase is a
replacement or not. Check your Annuity contract for more details about your
free look right.

GUARANTEED MINIMUM INCOME BENEFIT (GMIB)
We offer a program that, for an additional cost, after a seven-year waiting
period, guarantees your ability to begin receiving income from your Annuity in
the form of annuity payments based on your total Purchase Payments and an
annual increase of 5% on such Purchase Payments adjusted for withdrawals
(called the "Protected Income Value"), regardless of the impact of market
performance on your Account Value.

GUARANTEED MINIMUM WITHDRAWAL BENEFIT (GMWB)
We offer a program that, for an additional cost, guarantees your ability to
withdraw amounts over time equal to an initial principal value, regardless of
the impact of market performance on your Account Value.

GUARANTEE PERIOD
A period of time during the accumulation period where we credit a fixed rate of
interest on a Fixed Allocation.

GUARANTEED RETURN OPTION PLUS/SM/ (GRO PLUS/SM/ )/GUARANTEED RETURN OPTION
We offer a program that, for an additional cost, guarantees a "return of
premium" at a future date, while allowing you to allocate all or a portion of
your Account Value to certain Sub-accounts.

HIGHEST ANNIVERSARY VALUE DEATH BENEFIT ("HAV")
We offer an Optional Death Benefit that, for an additional cost, provides an
enhanced level of protection for your beneficiary(ies) by providing a death
benefit equal to the greater of the basic Death Benefit and the Highest
Anniversary Value, less proportional withdrawals.
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                                      3




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Glossary of Terms continued


<R>
HIGHEST DAILY VALUE DEATH BENEFIT ("HDV")
We offer an Optional Death Benefit that, for an additional cost, provides an
enhanced level of protection for your beneficiary(ies) by providing a death
benefit equal to the greater of the basic Death Benefit and the Highest Daily
Value, less proportional withdrawals.
</R>

INTERIM VALUE
The value of a Fixed Allocation on any date other than the Maturity Date. The
Interim Value is equal to the initial value allocated to the Fixed Allocation
plus all interest credited to the Fixed Allocation as of the date calculated,
less any transfers or withdrawals from the Fixed Allocation.

ISSUE DATE
The effective date of your Annuity.

<R>
LIFETIME FIVE INCOME BENEFIT
We offer a program that, for an additional cost, guarantees your ability to
withdraw amounts equal to a percentage of an initial principal value,
regardless of the impact of market performance on your Account Value, subject
to our program rules regarding the timing and amount of withdrawals.
</R>

MVA
A market value adjustment used in the determination of Account Value of each
Fixed Allocation on any day more than 30 days prior to the Maturity Date of
such Fixed Allocation.

OWNER
With an Annuity issued as an individual annuity contract, the Owner is either
an eligible entity or person named as having ownership rights in relation to
the Annuity. With an Annuity issued as a certificate under a group annuity
contract, the "Owner" refers to the person or entity who has the rights and
benefits designated as to the "Participant" in the certificate.

<R>
SPOUSAL LIFETIME FIVE INCOME BENEFIT
We offer a program that, for an additional cost, guarantees until the later
death of two Designated Lives (as defined in this Prospectus) the ability to
withdraw an annual amount equal to 5% of an initial principal value regardless
of the impact of market performance on the Account Value, subject to our
program rules regarding the timing and amount of withdrawals.

SUB-ACCOUNT
We issue your Annuity through our separate account. See "What is the Separate
Account?" under the General Information section. The separate account invests
in underlying mutual fund portfolios. From an accounting perspective, we divide
the separate account into a number of sections, each of which corresponds to a
particular underlying mutual fund portfolio. We refer to each such section of
our separate account as a "Sub-account".
</R>

SURRENDER VALUE
The value of your Annuity available upon surrender prior to the Annuity Date.
It equals the Account Value as of the date we price the surrender minus any
applicable CDSC, Annual Maintenance Fee, Tax Charge and the charge for any
optional benefits and any additional amounts we applied to your Purchase
Payments that we may be entitled to recover under certain circumstances. The
surrender value may be calculated using a MVA with respect to amounts in any
Fixed Allocation. No CDSC applies to the ASL II Annuity.

UNIT
A measure used to calculate your Account Value in a Sub-account during the
accumulation period.

VALUATION DAY
Every day the New York Stock Exchange is open for trading or any other day the
Securities and Exchange Commission requires mutual funds or unit investment
trusts to be valued.
<R>
-
</R>


                                      4




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Summary of Contract Fees and Charges

Below is a summary of the fees and charges for the Annuities. Some fees and
charges are assessed against each Annuity while others are assessed against
assets allocated to the Sub-accounts. The fees and charges that are assessed
against an Annuity include any applicable Contingent Deferred Sales Charge,
Transfer Fee, Tax Charge and Annual Maintenance Fee. The charges that are
assessed against the Sub-accounts are the Mortality and Expense risk charge,
the charge for Administration of the Annuity, any applicable Distribution
Charge and the charge for certain optional benefits you elect, other than the
Guaranteed Minimum Income Benefit, which is assessed against the Protected
Income Value. Each underlying mutual fund portfolio assesses a charge for
investment management, other expenses and with some mutual funds, a 12b-1
charge. The prospectus for each underlying mutual fund provides more detailed
information about the expenses for the underlying mutual funds.

The following table provides a summary of the fees and charges you will pay if
you surrender your Annuity or transfer Account Value among investment options.
These fees and charges are described in more detail within this Prospectus.

<R>
YOUR TRANSACTION FEES AND CHARGES
---------------------------------------------------------------------------------------------------------------------------
(ASSESSED AGAINST EACH ANNUITY)

    FEE/CHARGE              ASAP III                   APEX II                   ASL II                      XT6
---------------------------------------------------------------------------------------------------------------------------

Contingent Deferred       Up to 7.5%**              Up to 8.5%**        There is no Deferred            Up to 9.0%**
Sales Charge*                                                           Sales Charge deducted
                                                                        upon surrender or partial
                                                                        withdrawal.
---------------------------------------------------------------------------------------------------------------------------

Transfer Fee**      $10.00 (currently, $15.00 $10.00 (currently, $15.00 $10.00 (currently, $15.00 $10.00 (currently, $15.00
                            maximum)                  maximum)                  maximum)                  maximum)
---------------------------------------------------------------------------------------------------------------------------

Tax Charge***       0% to 3.5% of the value   0% to 3.5% of the value   0% to 3.5% of the value   0% to 3.5% of the value
                    that is annuitized,       that is annuitized,       that is annuitized,       that is annuitized,
                    depending on the          depending on the          depending on the          depending on the
                    requirements of the       requirements of the       requirements of the       requirements of the
                    applicable jurisdiction.  applicable jurisdiction.  applicable jurisdiction.  applicable jurisdiction.
---------------------------------------------------------------------------------------------------------------------------
</R>

<R>
* The tables on the following page contain the Contingent Deferred Sales
Charges upon surrender or withdrawal. The charge is a percentage of each
applicable Purchase Payment deducted upon surrender or withdrawal. The period
during which a particular percentage applies is measured from the Issue Date of
the Annuity.
** Currently, we deduct the fee after the 20/th/ transfer each Annuity Year. We
guarantee that the number of charge free transfers per Annuity Year will never
be less than 8.
*** This charge is deducted generally at the time you annuitize your contract.
</R>


                                      5




AMERICAN SKANDIA ANNUITIES PROSPECTUS

The following table provides a summary of the periodic fees and charges you
will pay while you own your Annuity, excluding the underlying mutual fund
Portfolio annual expenses. These fees and charges are described in more detail
within this Prospectus.

YOUR PERIODIC FEES AND CHARGES
---------------------------------------------------------------------------------------------------------------------------------
(ASSESSED AGAINST EACH ANNUITY)

   FEE/CHARGE              ASAP III                    APEX II                     ASL II                        XT6
---------------------------------------------------------------------------------------------------------------------------------

Annual             Smaller of $35 or 2% of    Smaller of $35 or 2% of    Smaller of $35 or 2% of     Smaller of $35 or 2% of
Maintenance Fee*   Account Value**            Account Value**            Account Value**             Account Value
---------------------------------------------------------------------------------------------------------------------------------

ANNUAL FEES/CHARGES OF THE SUB-ACCOUNTS/1/
---------------------------------------------------------------------------------------------------------------------------------
(ASSESSED AS A PERCENTAGE OF THE DAILY NET ASSETS OF THE SUB-ACCOUNTS)
   FEE/CHARGE
---------------------------------------------------------------------------------------------------------------------------------

Mortality &
Expense Risk
Charge/2/                    0.50%                      1.50%                      1.50%                        0.50%
---------------------------------------------------------------------------------------------------------------------------------
Administration               0.15%                      0.15%                      0.15%                        0.15%
Charge/2/
---------------------------------------------------------------------------------------------------------------------------------
Distribution                                                                                         1.00% in Annuity Years 1-10
Charge/3/          0.60% in Annuity Years 1-8            N/A                        N/A
---------------------------------------------------------------------------------------------------------------------------------
                   1.40% per year of the      1.40% per year of the      1.40% per year of the       1.40% per year of the value
                   value of each Sub-account  value of each Sub-account  value of each Sub-account   of each Sub-account if the
                   if the Owner's             if the Owner's             if the Owner's beneficiary  Owner's beneficiary elects
                   beneficiary elects the     beneficiary elects the     elects the Qualified        the Qualified Beneficiary
                   Qualified Beneficiary      Qualified Beneficiary      Beneficiary Continuation    Continuation Option/5/
Settlement         Continuation Option/5/     Continuation Option/5/     Option/5/ ("Qualified BCO") ("Qualified BCO")
Service Charge/4/  ("Qualified BCO")          ("Qualified BCO")
---------------------------------------------------------------------------------------------------------------------------------
                   1.25% per year of the      1.65% per year of the      1.65% per year of the       1.65% per year of the value
                   value of each Sub-account  value of each Sub-account  value of each Sub-account   of each Sub-account in
                   in Annuity Years 1-8;      (1.40% per year if you     (1.40% per year if you are  Annuity Years 1-10; 0.65% in
                   0.65% in Annuity Years 9   are a beneficiary          a beneficiary electing the  Annuity Years 11 and later
                   and later (1.40% per year  electing the Qualified     Qualified BCO)              (1.40% per year if you are a
Total Annual       if you are a beneficiary   BCO)                                                   beneficiary electing the
Charges of the     electing the Qualified                                                            Qualified BCO)
Sub-accounts       BCO)
---------------------------------------------------------------------------------------------------------------------------------

* Assessed annually on the Annuity's anniversary date or upon surrender.
<R>
** Only applicable if Account Value is less than $100,000. Assessed annually on
the Annuity's anniversary date or upon surrender.
</R>
1: These charges are deducted daily and apply to the Sub-accounts only.
2: The combination of the Mortality and Expense Risk Charge and Administration
Charge is referred to as the "Insurance Charge" elsewhere in this Prospectus.
3: The Distribution Charge is 0.00% in Annuity Years 9+ for ASAP III and in
Annuity Years 11+ for XT6.
4: The Mortality & Expense Risk Charge, the Administration Charge and the
Distribution Charge (if applicable) do not apply if you are a beneficiary under
the Qualified Beneficiary Continuation Option. The Settlement Service Charge
applies only if your beneficiary elects the Qualified Beneficiary Continuation
Option.
5: When an Annuity is used as an IRA, 403(b) or other "qualified investment",
upon the Owner's death a beneficiary may generally elect to continue the
Annuity and receive Minimum Distributions under the Annuity instead of
receiving the death benefit in a single payment. If a beneficiary elects this
option, the beneficiary will incur the Settlement Service Charge. Please refer
to the section of this Prospectus that describes the Qualified Beneficiary
Continuation Option for more detailed information about this option, including
certain restrictions and limitations that may apply.


                                      7




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Summary of Contract Fees and Charges continued

<R>
</R>
<R>
The following table sets forth the charge for each optional benefit under the
Annuity. These fees would be in addition to the periodic fees and transaction
fees set forth in the tables above.
</R>

<R>
YOUR OPTIONAL BENEFIT FEES AND CHARGES
-----------------------------------------------------------------------------------------------------------------
                                                 TOTAL             TOTAL          TOTAL             TOTAL
                         OPTIONAL                ANNUAL           ANNUAL         ANNUAL            ANNUAL
                         BENEFIT                CHARGE*           CHARGE*        CHARGE*           CHARGE*
                           FEE/                   for               for            for               for
OPTIONAL BENEFIT          CHARGE                ASAP III          APEX II        ASL II              XT6
-----------------------------------------------------------------------------------------------------------------

GUARANTEED RETURN OPTION Plus/SM/ (GRO Plus/SM/ )/GUARANTEED RETURN OPTION
-----------------------------------------------------------------------------------------------------------------
                 0.25% of average daily   1.50% in Annuity     1.90%; 1.65%   1.90%; 1.65%   1.90% in Annuity
                 net assets of the Sub-   Years 1-8; 0.90% in  for Qualified  for Qualified  Years 1-10; 0.90% in
                 accounts                 Annuity Years 9 and  BCO            BCO            Annuity Years 11 and
                                          later; 1.65% for                                   later; 1.65% for
                                          Qualified BCO                                      Qualified BCO

GUARANTEED MINIMUM WITHDRAWAL BENEFIT (GMWB)**
-----------------------------------------------------------------------------------------------------------------
                 0.35% of average daily   1.60% in Annuity     2.00%; 1.75%   2.00%; 1.75%   2.00% in Annuity
                 net assets of the Sub-   Years 1-8; 1.00% in  for Qualified  for Qualified  Years 1-10; 1.00% in
                 accounts                 Annuity Years 9 and  BCO            BCO            Annuity Years 11 and
                                          later; 1.75% for                                   later; 1.75% for
                                          Qualified BCO                                      Qualified BCO

GUARANTEED MINIMUM INCOME BENEFIT (GMIB)**
-----------------------------------------------------------------------------------------------------------------
                 0.50% per year of the    1.25% in Annuity     1.65% PLUS     1.65% PLUS     1.65% in Annuity
                 average Protected        Years 1-8; 0.65% in  0.50% per year 0.50% per year Years 1-10; 0.65% in
                 Income Value during      Annuity Years 9 and  of average     of average     Annuity Years 11 and
                 each year; deducted      later PLUS 0.50% per Protected      Protected      later PLUS 0.50% per
                 annually in arrears each year of average      Income Value   Income Value   year of average
                 Annuity Year             Protected Income                                   Protected Income
                                          Value                                              Value

LIFETIME FIVE/SM/ INCOME BENEFIT**
-----------------------------------------------------------------------------------------------------------------
                 0.60% of average daily   1.85% in Annuity     2.25%          2.25%          2.25% in Annuity
                 net assets of the Sub-   Years 1-8; 1.25% in                                Years 1-10; 1.25% in
                 accounts                 Annuity Years 9 and                                Annuity Years 9 and
                                          later                                              later
</R>


                                      8




AMERICAN SKANDIA ANNUITIES PROSPECTUS

<R>
   OPTIONAL BENEFIT
   ------------------------------------------------------------------------------------------------------------------------------
                                                      TOTAL                TOTAL           TOTAL               TOTAL
                          OPTIONAL                    ANNUAL              ANNUAL          ANNUAL              ANNUAL
                          BENEFIT                    CHARGE*              CHARGE*         CHARGE*             CHARGE*
                            FEE/                       for                  for             for                 for
                           CHARGE                    ASAP III             APEX II         ASL II                XT6
   ------------------------------------------------------------------------------------------------------------------------------

   SPOUSAL LIFETIME FIVE INCOME BENEFIT**
   ------------------------------------------------------------------------------------------------------------------------------
                     0.75% of average            2.00% in Annuity         2.40%           2.40%           2.40% in Annuity
                     daily net assets of         Years 1-8; 1.40%                                         Years 1-10;
                     the Subaccounts             in Annuity Years                                         1.40% in Annuity
                                                 9 and later                                              Years 11 and
                                                                                                          later

   ENHANCED BENEFICIARY PROTECTION DEATH BENEFIT**
   ------------------------------------------------------------------------------------------------------------------------------
                     0.25% of average            1.50% in Annuity         1.90%           1.90%           1.90% in Annuity
                     daily net assets of         Years 1-8; 0.90%                                         Years 1-10;
                     the Subaccounts             in Annuity Years                                         0.90% in Annuity
                                                 9 and later                                              Years 11 and
                                                                                                          later

   HIGHEST ANNIVERSARY VALUE DEATH BENEFIT ("HAV")**
   ------------------------------------------------------------------------------------------------------------------------------
                     0.25% of average            1.50% in Annuity         1.90%           1.90%           1.90% in Annuity
                     daily net assets of         Years 1-8; 0.90%                                         Years 1-10;
                     the Subaccounts             in Annuity Years                                         0.90% in Annuity
                                                 9 and later                                              Years 11 and
                                                                                                          later

   COMBINATION 5% ROLL-UP AND HAV DEATH BENEFIT**
   ------------------------------------------------------------------------------------------------------------------------------
                     0.50% of average            1.75% in Annuity         2.15%           2.15%           2.15% in Annuity
                     daily net assets of         Years 1-8; 1.15%                                         Years 1-10;
                     the Sub-accounts            in Annuity Years                                         1.15% in Annuity
                                                 9 and later                                              Years 11 and
                                                                                                          later

   HIGHEST DAILY VALUE DEATH BENEFIT ("HDV")**
   ------------------------------------------------------------------------------------------------------------------------------
                     0.50% of average            1.75% in Annuity         2.15%           2.15%           2.15% in Annuity
                     daily net assets of         Years 1-8; 1.15%                                         Years 1-10;
                     the Sub-accounts            in Annuity Years                                         1.15% in Annuity
                                                 9 and later                                              Years 11 and
                                                                                                          later
   ------------------------------------------------------------------------------------------------------------------------------
   Please refer to the section of this Prospectus that describes each optional benefit for a complete description of the benefit,
   including any restrictions or limitations that may apply.
   ------------------------------------------------------------------------------------------------------------------------------
</R>

* The Total Annual Charge includes the Insurance Charge and Distribution Charge
(if applicable) assessed against the average daily net assets allocated to the
Sub-accounts. If you elect more than one optional benefit, the Total Annual
Charge would be increased to include the charge for each optional benefit.
** These optional benefits are not available under the Qualified BCO.


                                      9




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Summary of Contract Fees and Charges continued

<R>
   The following table provides the range (minimum and maximum) of the total
annual expenses for the underlying mutual funds ("Portfolios") as of December
31, 2005. Each figure is stated as a percentage of the underlying Portfolio's
average daily net assets.
</R>

<R>
           TOTAL ANNUAL PORTFOLIO OPERATING EXPENSES
           ---------------------------------------------------------
                                                     MINIMUM MAXIMUM
           ---------------------------------------------------------
               Total Portfolio Operating Expense      0.63%  2.48 %
</R>

<R>
The following are the total annual expenses for each underlying mutual fund
("Portfolio") as of December 31, 2005, except as noted. The "Total Annual
Portfolio Operating Expenses" reflect the combination of the underlying
Portfolio's investment management fee, other expenses and any 12b-1 fees. Each
figure is stated as a percentage of the underlying Portfolio's average daily
net assets. There is no guarantee that actual expenses will be the same as
those shown in the table. For certain of the underlying Portfolios, a portion
of the management fee has been waived and/or other expenses have been partially
reimbursed. The existence of any such fee waivers and/or reimbursements have
been reflected in the footnotes. The following expenses are deducted by the
underlying Portfolio before it provides American Skandia with the daily net
asset value. The underlying Portfolio information was provided by the
underlying mutual funds and has not been independently verified by us. See the
prospectuses or statements of additional information of the underlying
Portfolios for further details. The current prospectus and statement of
additional information for the underlying Portfolios can be obtained by calling
1-800-752-6342.
</R>

<R>
UNDERLYING MUTUAL FUND PORTFOLIO ANNUAL EXPENSES
--------------------------------------------------------------------------------------------------------
(AS A PERCENTAGE OF THE AVERAGE NET ASSETS OF THE UNDERLYING PORTFOLIOS)
                                                             FOR THE YEAR ENDED DECEMBER 31, 2005
                                                                                        TOTAL ANNUAL
                                                        MANAGEMENT   OTHER     12B-1 PORTFOLIO OPERATING
              UNDERLYING PORTFOLIO                         FEES    EXPENSES/1/ FEES       EXPENSES

American Skandia Trust/2,3/
--------------------------------------------------------------------------------------------------------
      AST Advanced Strategies                             0.85%      0.18%     0.00%        1.03%
      AST Aggressive Asset Allocation/4/                  1.04%      0.29%     0.00%        1.33%
      AST AllianceBernstein Core Value                    0.75%      0.19%     0.00%        0.94%
      AST AllianceBernstein Managed Index 500/5/          0.60%      0.17%     0.00%        0.77%
      AST AllianceBernstein Growth & Income               0.75%      0.13%     0.00%        0.88%
      AST American Century Income & Growth                0.75%      0.18%     0.00%        0.93%
      AST American Century Strategic Balanced             0.85%      0.23%     0.00%        1.08%
      AST Balanced Asset Allocation/4/                    0.95%      0.20%     0.00%        1.15%
      AST Capital Growth Asset Allocation/4/              1.00%      0.20%     0.00%        1.20%
      AST Cohen & Steers Realty                           1.00%      0.18%     0.00%        1.18%
      AST Conservative Asset Allocation/4/                0.94%      0.24%     0.00%        1.18%
      AST DeAM Large-Cap Value                            0.85%      0.22%     0.00%        1.07%
      AST DeAM Small-Cap Growth                           0.95%      0.20%     0.00%        1.15%
      AST DeAM Small-Cap Value                            0.95%      0.24%     0.00%        1.19%
      AST Federated Aggressive Growth                     0.95%      0.17%     0.00%        1.12%
      AST First Trust Balanced Target                     0.85%      0.19%     0.00%        1.04%
      AST First Trust Capital Appreciation Target         0.85%      0.19%     0.00%        1.04%
      AST Global Allocation/6/                            0.86%      0.23%     0.00%        1.09%
      AST Goldman Sachs Concentrated Growth               0.90%      0.16%     0.00%        1.06%
      AST Goldman Sachs Mid-Cap Growth                    1.00%      0.18%     0.00%        1.18%
      AST Goldman Sachs Small-Cap Value                   0.95%      0.22%     0.00%        1.17%
      AST High Yield/7/                                   0.75%      0.19%     0.00%        0.94%
      AST JPMorgan International Equity                   0.88%      0.19%     0.00%        1.07%
</R>


                                      10




AMERICAN SKANDIA ANNUITIES PROSPECTUS

<R>
                                                                     FOR THE YEAR ENDED DECEMBER 31, 2005
                                                                                                TOTAL ANNUAL
                                                                MANAGEMENT   OTHER     12B-1 PORTFOLIO OPERATING
                  UNDERLYING PORTFOLIO                             FEES    EXPENSES/1/ FEES       EXPENSES

American Skandia Trust/2,3/ continued
----------------------------------------------------------------------------------------------------------------
      AST Large-Cap Value/8/                                      0.75%      0.16%     0.00%        0.91%
      AST Lord Abbett Bond-Debenture                              0.80%      0.17%     0.00%        0.97%
      AST LSV International Value                                 1.00%      0.26%     0.00%        1.26%
      AST Marsico Capital Growth                                  0.90%      0.13%     0.00%        1.03%
      AST MFS Global Equity                                       1.00%      0.26%     0.00%        1.26%
      AST MFS Growth                                              0.90%      0.18%     0.00%        1.08%
      AST Mid-Cap Value/9/                                        0.95%      0.22%     0.00%        1.17%
      AST Money Market/10/                                        0.50%      0.13%     0.00%        0.63%
      AST Neuberger Berman Mid-Cap Growth/11/                     0.90%      0.18%     0.00%        1.08%
      AST Neuberger Berman Mid-Cap Value                          0.89%      0.14%     0.00%        1.03%
      AST PIMCO Limited Maturity Bond                             0.65%      0.15%     0.00%        0.80%
      AST PIMCO Total Return Bond                                 0.65%      0.15%     0.00%        0.80%
      AST Preservation Asset Allocation/4/                        0.89%      0.38%     0.00%        1.27%
      AST Small-Cap Growth                                        0.90%      0.25%     0.00%        1.15%
      AST Small-Cap Value/12/                                     0.90%      0.17%     0.00%        1.07%
      AST T. Rowe Price Asset Allocation                          0.85%      0.23%     0.00%        1.08%
      AST T. Rowe Price Large-Cap Growth/13/                      0.90%      0.21%     0.00%        1.11%
      AST T. Rowe Price Global Bond                               0.80%      0.21%     0.00%        1.01%
      AST T. Rowe Price Natural Resources                         0.90%      0.18%     0.00%        1.08%
      AST William Blair International Growth                      1.00%      0.18%     0.00%        1.18%

AIM Variable Insurance Funds/14/
----------------------------------------------------------------------------------------------------------------
      AIM V.I. Dynamics Fund -- Series I shares                   0.75%      0.42%     0.00%        1.17%
      AIM V.I. Financial Services Fund -- Series I shares         0.75%      0.37%     0.00%        1.12%
      AIM V.I. Global Health Care Fund -- Series I shares         0.75%      0.33%     0.00%        1.08%
      AIM V.I. Technology Fund -- Series I shares                 0.75%      0.37%     0.00%        1.12%

Evergreen Variable Annuity Trust
----------------------------------------------------------------------------------------------------------------
      Growth                                                      0.70%      0.22%     0.00%        0.92%
      International Equity                                        0.41%      0.30%     0.00%        0.71%
      Omega                                                       0.52%      0.19%     0.00%        0.71%

First Defined Portfolio Fund, LLC/15,16/
----------------------------------------------------------------------------------------------------------------
      First Trust(R) 10 Uncommon Values                           0.60%      0.84%     0.25%        1.69%
      Global Dividend Target 15                                   0.60%      0.76%     0.25%        1.61%
      NASDAQ(R) Target 15                                         0.60%      0.98%     0.25%        1.83%
      S&P(R) Target 24                                            0.60%      0.73%     0.25%        1.58%
      Target Managed VIP                                          0.60%      0.63%     0.25%        1.48%
      The Dow Target Dividend                                     0.60%      0.67%     0.25%        1.52%
      The Dow/SM/ DART 10                                         0.60%      0.74%     0.25%        1.59%
      Value Line(R) Target 25                                     0.60%      0.64%     0.25%        1.49%

Gartmore Variable Insurance Trust/17/
----------------------------------------------------------------------------------------------------------------
      GVIT Developing Markets                                     1.05%      0.37%     0.25%        1.67%
</R>


                                      11




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Summary of Contract Fees and Charges continued
<R>
                                                            FOR THE YEAR ENDED DECEMBER 31, 2005
                                                                                       TOTAL ANNUAL
                                                       MANAGEMENT   OTHER     12B-1 PORTFOLIO OPERATING
              UNDERLYING PORTFOLIO                        FEES    EXPENSES/1/ FEES       EXPENSES

ProFund VP/18/
-------------------------------------------------------------------------------------------------------
      Access VP High Yield                               0.75%      1.13%     0.25%        2.13%
      Asia 30                                            0.75%      0.82%     0.25%        1.82%
      Banks                                              0.75%      1.03%     0.25%        2.03%
      Basic Materials                                    0.75%      0.91%     0.25%        1.91%
      Bear                                               0.75%      0.86%     0.25%        1.86%
      Biotechnology                                      0.75%      0.92%     0.25%        1.92%
      Bull                                               0.75%      0.78%     0.25%        1.78%
      Consumer Goods                                     0.75%      1.08%     0.25%        2.08%
      Consumer Services                                  0.75%      1.48%     0.25%        2.48%
      Europe 30                                          0.75%      0.76%     0.25%        1.76%
      Financials                                         0.75%      0.92%     0.25%        1.92%
      Health Care                                        0.75%      0.89%     0.25%        1.89%
      Industrials                                        0.75%      1.17%     0.25%        2.17%
      Internet                                           0.75%      0.92%     0.25%        1.92%
      Japan                                              0.75%      0.83%     0.25%        1.83%
      Large-Cap Growth                                   0.75%      0.94%     0.25%        1.94%
      Large-Cap Value                                    0.75%      1.00%     0.25%        2.00%
      Mid-Cap Growth                                     0.75%      0.89%     0.25%        1.89%
      Mid-Cap Value                                      0.75%      0.87%     0.25%        1.87%
      Oil & Gas                                          0.75%      0.86%     0.25%        1.86%
      OTC                                                0.75%      0.84%     0.25%        1.84%
      Pharmaceuticals                                    0.75%      0.93%     0.25%        1.93%
      Precious Metals                                    0.75%      0.86%     0.25%        1.86%
      Real Estate                                        0.75%      0.89%     0.25%        1.89%
      Rising Rates Opportunity                           0.75%      0.73%     0.25%        1.73%
      Semiconductor                                      0.75%      0.98%     0.25%        1.98%
      Short Mid-Cap                                      0.75%      1.28%     0.25%        2.28%
      Short OTC                                          0.75%      0.85%     0.25%        1.85%
      Short Small-Cap                                    0.75%      0.90%     0.25%        1.90%
      Small-Cap Growth                                   0.75%      0.85%     0.25%        1.85%
      Small-Cap Value                                    0.75%      0.91%     0.25%        1.91%
      Technology                                         0.75%      0.89%     0.25%        1.89%
      Telecommunications                                 0.75%      0.91%     0.25%        1.91%
      U.S. Government Plus                               0.50%      0.84%     0.25%        1.59%
      UltraBull                                          0.75%      0.88%     0.25%        1.88%
      UltraMid-Cap                                       0.75%      0.91%     0.25%        1.91%
      UltraOTC                                           0.75%      0.85%     0.25%        1.85%
      UltraSmall-Cap                                     0.75%      0.91%     0.25%        1.91%
      Utilities                                          0.75%      0.89%     0.25%        1.89%

The Prudential Series Fund
-------------------------------------------------------------------------------------------------------
      SP William Blair International Growth              0.85%      0.13%     0.00%        0.98%

Wells Fargo Variable Trust/19/
-------------------------------------------------------------------------------------------------------
      Wells Fargo Advantage VT Equity Income/20/         0.55%      0.25%     0.25%        1.05%
</R>


                                      12




AMERICAN SKANDIA ANNUITIES PROSPECTUS

<R>
</R>
<R>
1: As noted above, shares of the Portfolios generally are purchased through
variable insurance products. Many of the Portfolios and/or their investment
advisers and/or distributors have entered into arrangements with us as the
issuer of each Annuity under which they compensate us for providing ongoing
services in lieu of the Trust providing such services. Amounts paid by a
Portfolio under those arrangements are included under "Other Expenses." For
more information see the prospectus for each underlying portfolio and, "Service
Fees payable to American Skandia," later in this prospectus.
2: The total actual operating expenses for certain of the Portfolios listed
above for the year ended December 31, 2005 were less than the amounts shown in
the table above, due to fee waivers, reimbursement of expenses, and expense
offset arrangements ("Arrangements"). These Arrangements are voluntary and may
be terminated at any time. In addition, the Arrangements may be modified
periodically. For more information regarding the Arrangements, please see the
prospectus and statement of additional information for the Portfolios.
3: Until November 18, 2004, the Trust had a Distribution Plan under Rule 12b-1
to permit an affiliate of the Trust's Investment Managers to receive brokerage
commissions in connection with purchases and sales of securities held by the
Portfolios, and to use these commissions to promote the sale of shares of the
Portfolio. The Distribution Plan was terminated effective November 18, 2004.
4:a. Each Asset Allocation Portfolio invests primarily in shares of one or more
  AST Portfolios (the "Underlying Portfolios"). The only management fee
  directly paid by an Asset Allocation Portfolio is a 0.15% fee paid to the
  investment managers. The management fee shown in the chart for each Asset
  Allocation Portfolio includes: (i) the 0.15% management fee to be paid by the
  Asset Allocation Portfolio to the investment managers plus (ii) a weighted
  average estimate of the management fees to be paid by the Underlying
  Portfolios to the investment managers, which are borne indirectly by
  investors in the Asset Allocation Portfolio. Each weighted average estimate
  was calculated based on the percentage of the Portfolio invested in each
  Underlying Portfolio as of December 31, 2005 using the management fee rates
  shown in the chart above.
  b. The other expenses shown in the chart for each Asset Allocation Portfolio
  include: (i) an estimate of expenses other than management fees ("other
  expenses") paid by the Asset Allocation Portfolio plus (ii) a weighted
  average estimate of the other expenses to be paid by the Underlying
  Portfolios, which are borne indirectly by investors in the Asset Allocation
  Portfolio. Each weighted average estimate of the other expenses paid by the
  Underlying Portfolios is calculated based on the percentage of the applicable
  Asset Allocation Portfolio invested in each Underlying Portfolio using the
  other expense rates shown in the chart above. Descriptions of the types of
  costs that are included as other expenses for the Asset Allocation Portfolios
  and the Underlying Portfolios are set forth in the prospectus for the Asset
  Allocation Portfolios.
5: Effective December 5, 2005, the AST AllianceBernstein Growth + Value
Portfolio merged into the AST AllianceBernstein Managed Index 500 Portfolio.
6:a. The AST Global Allocation Portfolio invests primarily in shares of other
  AST Portfolios (the "Underlying Portfolios"). The only management fee
  directly paid by the Portfolio is a 0.10% fee paid to the investment
  managers. The management fee shown in the chart for the Portfolio includes:
  (i) that 0.10% management fee paid by the Portfolio plus (ii) a weighted
  average estimate of the management fees paid by the Underlying Portfolios,
  which are borne indirectly by investors in the Portfolio. The weighted
  average estimate was calculated based on the percentage of the Portfolio
  invested in each Underlying Portfolio as of December 31, 2005 using the
  management fee rates shown in the chart above.
  b. The other expenses shown in the chart for the AST Global Allocation
  Portfolio include: (i) an estimate of expenses other than management fees
  ("other expenses") paid by the Portfolio plus (ii) a weighted average
  estimate of the other expenses to be paid by the Underlying Portfolios, which
  are borne indirectly by investors in the Portfolio. Each weighted average
  estimate of the other expenses paid by the Underlying Portfolios is
  calculated based on the percentage of the Portfolio invested in each
  Underlying Portfolio using the other expense rates shown in the chart above.
  Descriptions of the types of costs that are included as other expenses for
  the Portfolio and the Underlying Portfolios are set forth in the prospectus
  for the Portfolio.
7: Effective March 20, 2006, Pacific Investment Management Company LLC became a
Sub-advisor of the Portfolio along with Goldman Sachs Asset Management L.P.
Prior to March 20, 2006, Goldman Sachs Asset Management L.P. served as the sole
Sub-advisor of the Portfolio, then named the "AST Goldman Sachs High Yield Bond
Portfolio."
8: Effective March 20, 2006, Dreman Value Management LLC became a Sub-advisor
along with J.P. Morgan Investment Management, Inc. and Hotchkis & Wiley Capital
Management, LLC. Between December 5, 2005 and March 20, 2006, J.P. Morgan
Investment Management, Inc. and Hotchkis & Wiley Capital Management, LLC served
as Co-Sub-advisors of the Portfolio. Prior to December 5, 2005, Hotchkis &
Wiley Capital Management, LLC served as Sub-advisor of the Portfolio, then
named the "AST Hotchkis & Wiley Large-Cap Value Portfolio."
9: Effective December 5, 2005, EARNEST Partners LLC and WEDGE Capital
Management, LLP became Co-Sub-advisors of the Portfolio. Prior to December 5,
2005, GAMCO Investors, Inc. served as Sub-advisor of the Portfolio, then named
the "AST Gabelli All-Cap Value Portfolio."
10: Effective December 5, 2005, Prudential Investment Management, Inc. became
the Sub-advisor of the Portfolio. Prior to December 5, 2005, Wells Capital
Management, Inc. served as Sub-advisor of the Portfolio.
11: Effective December 5, 2005, the AST Alger All-Cap Growth Portfolio merged
into the AST Neuberger Berman Mid-Cap Growth Portfolio.
12: Effective March 20, 2006, Dreman Value Management LLC became a Sub-advisor
along with Salomon Brothers Asset Management, Inc., J.P. Morgan Investment
Management, Inc. and Lee Munder Capital Group. Between December 5, 2005 and
March 20, 2006, Salomon Brothers Asset Management, Inc., J.P. Morgan Investment
Management, Inc., Lee Munder Capital Group and Integrity Asset Management
served as Sub-advisors of the Portfolio. Prior to December 5, 2005, J.P. Morgan
Investment Management, Inc., Lee Munder Capital Group and Integrity Asset
Management served as Sub-advisors of the Portfolio. The name of the Portfolio
remains unchanged.
13: Effective December 5, 2005, T. Rowe Price Associates, Inc. became the
Sub-advisor of the Portfolio. Prior to December 5, 2005, Alliance Capital
Management, L.P. served as Sub-advisor of the Portfolio, then named the "AST
AllianceBernstein Large-Cap Growth Portfolio."
14: The Fund's advisor has contractually agreed to waive advisory fees and/or
reimburse expenses of Series I shares to the extent necessary to limit Total
Annual Portfolio Operating Expenses (excluding certain items discussed below)
of Series I shares to 1.30% of average daily net assets. In determining the
advisor's obligation to waive advisory fees and/or reimburse expenses, the
following expenses are not taken into account, and could cause the Total Annual
Portfolio Operating Expenses to exceed the number reflected above: (i)
interest; (ii) taxes; (iii) dividend expense on short sales; (iv) extraordinary
items; (v) expenses related to a merger or reorganizations as approved by the
Fund's Board of Trustees; and (vi) expenses that the Fund has incurred but did
not actually pay because of an expense offset arrangement. Currently, the
expense offset arrangements from which the Fund may benefit are in the form of
credits that the Fund receives from banks where the Fund or its transfer agent
has deposit accounts in which it holds uninvested cash. Those credits are used
to pay certain expenses incurred by the Fund. The expense limitation agreement
is in effect through April 30, 2007.
15: The Funds' Board of Trustees reserve the right to suspend payments under
the 12b-1 Plan at any time. On May 1, 2003, 12b-1 payments were suspended for
all Funds except the First Trust 10 Uncommon Values Portfolio. Payments under
the 12b-1 Plan resumed effective May 1, 2004 for the Target Managed VIP
Portfolio, the Dow Dart 10 Portfolio, the Global Dividend Target 15 Portfolio,
the S&P Target 24 Portfolio, the Nasdaq Target 15 Portfolio and the Value Line
Target 25 Portfolio.
</R>


                                      13




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Summary of Contract Fees and Charges continued
<R>
16: For the period September 30, 2004 through December 31, 2007, First Trust
has contractually agreed to waive fees and reimburse expenses of the Portfolios
to limit the total annual fund operating expenses (excluding brokerage expense
and extraordinary expense) to 1.37% for the First Trust 10 Uncommon Values
Portfolio and 1.47% for each of the other Portfolios' average daily net assets.
First Trust has entered into an agreement with First Defined Portfolio Fund,
LLC that will allow First Trust to recover from the Portfolios any fees waived
or reimbursed during the three year period of January 1, 2005 through December
31, 2007. However, First Trust's ability to recover such amounts is limited to
the extent that it would not exceed the amount reimbursed or waived during such
period.
</R>

<R>
                                               TOTAL ACTUAL ANNUAL
                                           PORTFOLIO OPERATING EXPENSES
         PORTFOLIO NAME                    AFTER EXPENSE REIMBURSEMENT
         First Trust(R) 10 Uncommon Values            1.37%
         Target Managed VIP                           1.47%
         S&P Target 24                                1.47%
         The Dow/SM/ DART 10                          1.47%
         Value Line(R) Target 25                      1.47%
         Global Dividend Target 15                    1.47%
         Nasdaq Target 15                             1.47%
         Dow Target Dividend                          1.47%
</R>
<R>
17: Effective January 1, 2006, the Fund implemented a performance fee structure
and the management fee was lowered to 1.05%. Beginning January 1, 2007, the
management fee may be adjusted, on a quarterly basis, upward or downward
depending on the Fund's performance relative to its benchmark, the MSCI
Emerging Markets Free Index. As a result, beginning January 1, 2007, if the
management fee were calculated taking into account all base fee breakpoints and
performance fee adjustments, the management fee could range from 0.95% at its
lowest to 1.15% at its highest.
18: ProFund Advisors LLC has contractually agreed to waive Investment Advisory
and Management Services Fees and to reimburse other expenses to the extent
Total Annual Portfolio Operating Expenses, as a percentage of average daily net
assets, exceed 1.98% (1.73% for ProFund VP U.S. Government Plus and 1.78% for
ProFund VP Rising Rates Opportunity) through December 31, 2006. After such
date, any of the expense limitations may be terminated or revised. Amounts
waived or reimbursed in a particular fiscal year may be repaid to ProFund
Advisors LLC within three years of the waiver or reimbursement to the extent
that recoupment will not cause the Portfolio's expenses to exceed any expense
limitation in place at that time. A waiver or reimbursement lowers the expense
ratio and increases overall returns to investors.
19:  a: The Adviser of Wells Fargo Variable Trust has committed through April
30, 2007 to waive fees and/or reimburse expenses to the extent necessary to
maintain the Fund's net operating expenses as shown.
</R>

<R>
                                                 TOTAL ACTUAL ANNUAL
                                             PORTFOLIO OPERATING EXPENSES
      PORTFOLIO NAME                         AFTER EXPENSE REIMBURSEMENT
      Wells Fargo Advantage VT Equity Income            1.00%
</R>

<R>
  b: In addition, the following name changes were made effective May 1, 2006:
</R>

<R>
       OLD PORTFOLIO NAME         NEW PORTFOLIO NAME
       Advantage VT Equity Income Wells Fargo Advantage VT Equity Income
</R>
<R>
20: The Fund's investment adviser has implemented a breakpoint schedule for the
Fund's management fee. The management fee charged to the Fund will decline as
the Fund's assets grow and will continue to be based on a percentage of the
Fund's average daily net assets. The breakpoint schedule for the Fund is as
follows: 0.55% for assets under $500 million, 0.50% for the next $500 million
in assets; 0.45% for the next $2 billion in assets; 0.425% for the next $2
billion; and 0.40% for assets over $5 billion.
</R>


                                      14




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Expense Examples

These examples are intended to help you compare the cost of investing in one
American Skandia Annuity with the cost of investing in other American Skandia
Annuities and/or other variable annuities.
Below are examples for each Annuity showing what you would pay in expenses at
the end of the stated time periods had you invested $10,000 in the Annuity and
your investment has a 5% return each year.
The examples reflect the following fees and charges for each Annuity as
described in "Summary of Contract Fees and Charges":

. Insurance Charge
. Distribution Charge (if applicable)
. Contingent Deferred Sales Charge (when and if applicable)
. Annual Maintenance Fee
. The maximum combination of optional benefit charges

The examples also assume the following for the period shown:

<R>
. You allocate all of your Account Value to the Sub-account with the maximum
  total annual operating expenses, and those expenses remain the same each year
</R>
. You make no withdrawals of Account Value
. You make no transfers, or other transactions for which we charge a fee
. No tax charge applies
<R>
. You elect the Lifetime Five Income Benefit, the Highest Daily Value Death
  Benefit and the Enhanced Beneficiary Protection Death Benefit (which are the
  maximum combination of optional benefit charges)
</R>
. For the XT6 example, the Credit applicable to the Annuity is 6.5% of the
  Purchase Payment*
. For the APEX II example, the Loyalty Credit applies to the Annuity and is
  equal to 2.75% of total purchase payments made during the first four Annuity
  years
. For the ASAP III example, the Loyalty Credit applies to the Annuity and is
  equal to 0.50% of total purchase payment made during the first four Annuity
  years.

Amounts shown in the examples are rounded to the nearest dollar.

* The Credit that is applied to Purchase Payments received after the first
  Annuity Year is less than 6.5% (see "How do I Receive Credits?")
The examples are illustrative only -- they should not be considered a
representation of past or future expenses of the underlying mutual funds or
their portfolios -- actual expenses will be less than those shown if you elect
a different combination of optional benefits than indicated in the examples or
if you allocate Account Value to any other available Sub-accounts.

<R>
</R>
Expense Examples are provided as follows: 1.) if you surrender the Annuity at
the end of the stated time period; 2.) if you annuitize at the end of the
stated time period; and 3.) if you do not surrender your Annuity. A table of
accumulation values appears in Appendix A to this Prospectus.
<R>
         IF YOU SURRENDER YOUR ANNUITY AT THE  IF YOU ANNUITIZE YOUR ANNUITY AT THE  IF YOU DO NOT SURRENDER
         END OF THE APPLICABLE TIME PERIOD:/1/ END OF THE APPLICABLE TIME PERIOD:/2/ YOUR ANNUITY:
----------------------------------------------------------------------------------------------------------------
         1 YR      3 YRS    5 YRS    10 YRS    1 YR     3 YRS     5 YRS    10 YRS    1 YR  3 YRS  5 YRS  10 YRS
ASAP III $1,217    $2,204   $3,136   $ 5,205     N/A    $1,619    $2,686   $ 5,205   $ 542 $1,619 $2,686 $ 5,205
APEX II  $1,346    $2,357   $2,855   $ 5,594     N/A    $1,727    $2,855   $ 5,594   $ 581 $1,727 $2,855 $ 5,594
ASL II   $  581    $1,727   $2,855   $ 5,594   $ 581    $1,727    $2,855   $ 5,594   $ 581 $1,727 $2,855 $ 5,594
XT6      $1,479    $2,647   $3,698   $ 6,121     N/A       N/A    $3,026   $ 5,929   $ 615 $1,831 $3,026 $ 5,929
</R>

1: There is no CDSC for ASL II. See "Summary of Contract Fees and Charges" for
the CDSC schedule for each Annuity.
2: If you own XT6, you may not annuitize in the first Three (3) Annuity Years;
if you own ASAP III or APEX II, you may not annuitize in the first Annuity Year.


                                      15




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Investment Options

WHAT ARE THE INVESTMENT OBJECTIVES AND POLICIES OF THE PORTFOLIO?
Each variable investment option is a Sub-account of American Skandia Life
Assurance Corporation Variable Account B (see "What are Separate Accounts" for
more detailed information). Each Sub-account invests exclusively in one
Portfolio. You should carefully read the prospectus for any Portfolio in which
you are interested. The following chart classifies each of the Portfolios based
on our assessment of their investment style (as of the date of this
Prospectus). The chart also provides a description of each Portfolio's
investment objective (in italics) and a short, summary description of their key
policies to assist you in determining which Portfolios may be of interest to
you. There is no guarantee that any underlying Portfolio will meet its
investment objective.
<R>
   The name of the advisor/sub-advisor for each Portfolio appears next to the
description. Those Portfolios whose name includes the prefix "AST" are
Portfolios of American Skandia Trust. The investment managers for AST are
American Skandia Investment Services, Incorporated, a Prudential Financial
Company, and Prudential Investments LLC, both of which are affiliated companies
of American Skandia. However, a sub-advisor, as noted below, is engaged to
conduct day-to-day management.
</R>
   The Portfolios are not publicly traded mutual funds. They are only available
as investment options in variable annuity contracts and variable life insurance
policies issued by insurance companies, or in some cases, to participants in
certain qualified retirement plans. However, some of the Portfolios available
as Sub-accounts under the Annuities are managed by the same portfolio advisor
or sub-advisor as a retail mutual fund of the same or similar name that the
Portfolio may have been modeled after at its inception. Certain retail mutual
funds may also have been modeled after a Portfolio. While the investment
objective and policies of the retail mutual funds and the Portfolios may be
substantially similar, the actual investments will differ to varying degrees.
Differences in the performance of the funds can be expected, and in some cases
could be substantial. You should not compare the performance of a publicly
traded mutual fund with the performance of any similarly named Portfolio
offered as a Sub-account. Details about the investment objectives, policies,
risks, costs and management of the Portfolios are found in the prospectuses for
the underlying mutual funds. The current prospectus and statement of additional
information for the underlying Portfolios can be obtained by calling
1-800-752-6342.
    Effective May 1, 2004, the SP William Blair International Growth Portfolio
 (formerly the SP Jennison International Growth Portfolio) is no longer offered
 as a Sub-account under the Annuities, except as follows: if at any time prior
 to May 1, 2004 you had any portion of your Account Value allocated to the SP
 William Blair International Growth Sub-account, you may continue to allocate
 Account Value and make transfers into and/ or out of the SP William Blair
 International Growth Sub-account, including any electronic funds transfer,
 dollar cost averaging, asset allocation and rebalancing programs. If you never
 had a portion of your Account Value allocated to the SP William Blair
 International Growth Sub-account prior to May 1, 2004 or if you purchase your
 Annuity on or after May 1, 2004, you cannot allocate Account Value to the SP
 William Blair International Growth Sub-account.
    With respect to XT6, APEX II and ASL II: Effective as of the close of
 business June 28, 2002, the AST Goldman Sachs Small-Cap Value Portfolio is no
 longer offered as a Sub-account under the Annuities, except as follows: if at
 any time on or prior to June 28, 2002 you had any portion of your Account
 Value allocated to the AST Goldman Sachs Small-Cap Value Sub-account, you may
 continue to allocate Account Value and make transfers into and/or out of the
 AST Goldman Sachs Small-Cap Value Sub-account, including any electronic funds
 transfer, dollar cost averaging, asset allocation and rebalancing programs. If
 you never had a portion of your Account Value allocated to the AST Goldman
 Sachs Small-Cap Value Sub-account on or prior to June 28, 2002 or if you
 purchase your Annuity after June 28, 2002, you cannot allocate Account Value
 to the AST Goldman Sachs Small-Cap Value Sub-Account. The AST Goldman Sachs
 Small-Cap Value Portfolio is not available nor was it ever available under
 ASAP III.
    Either of these Sub-accounts may be offered to new Owners at some future
 date; however, at the present time, there is no intention to do so. We also
 reserve the right to offer or close this Sub-account to all Owners that owned
 the Annuity prior to the close date.


                                      16




AMERICAN SKANDIA ANNUITIES PROSPECTUS


<R>
                                                            PORTFOLIO
                                                            ADVISOR/
   STYLE/ TYPE    INVESTMENT OBJECTIVES/POLICIES           SUB-ADVISOR
   -------------------------------------------------------------------------
   AST FUNDS
   -------------------------------------------------------------------------
   ASSET       AST Advanced Strategies Portfolio:     Marsico Capital
   ALLOCATION/ seeks a high level of absolute         Management, LLC;
   BALANCED    return. The Portfolio invests          T. Rowe Price
               primarily in a diversified portfolio   Associates, Inc.;
               of equity and fixed income securities  LSV Asset
               across different investment            Management;
               categories and investment managers.    William Blair &
               The Portfolio pursues a combination    Company, L.L.C.;
               of traditional and non-traditional     Pacific Investment
               investment strategies.                 Management
                                                      Company LLC
                                                      (PIMCO)
   -------------------------------------------------------------------------
   ASSET       AST Aggressive Asset Allocation        American Skandia
   ALLOCATION/ Portfolio: seeks the highest           Investment
   BALANCED    potential total return consistent      Services, Inc./
               with its specified level of risk       Prudential
               tolerance. The Portfolio will invest   Investments LLC
               its assets in several other American
               Skandia Trust Portfolios. Under
               normal market conditions, the
               Portfolio will devote between 92.5%
               to 100% of its net assets to
               underlying portfolios investing
               primarily in equity securities, and
               0% to 7.5% of its net assets to
               underlying portfolios investing
               primarily in debt securities and
               money market instruments.
   -------------------------------------------------------------------------
   LARGE CAP   AST AllianceBernstein Core Value       AllianceBernstein L.P.
   VALUE       Portfolio: seeks long-term capital
               growth by investing primarily in
               common stocks. The Sub-advisor
               expects that the majority of the
               Portfolio's assets will be invested
               in the common stocks of large
               companies that appear to be
               undervalued. Among other things, the
               Portfolio seeks to identify
               compelling buying opportunities
               created when companies are
               undervalued on the basis of investor
               reactions to near-term problems or
               circumstances even though their
               long-term prospects remain sound. The
               Sub-advisor seeks to identify
               individual companies with earnings
               growth potential that may not be
               recognized by the market at large.
   -------------------------------------------------------------------------
   LARGE CAP   AST AllianceBernstein Growth & Income  AllianceBernstein L.P.
   VALUE       Portfolio: seeks long-term growth of
               capital and income while attempting
               to avoid excessive fluctuations in
               market value. The Portfolio normally
               will invest in common stocks (and
               securities convertible into common
               stocks). The Sub-advisor will take a
               value-oriented approach, in that it
               will try to keep the Portfolio's
               assets invested in securities that
               are selling at reasonable valuations
               in relation to their fundamental
               business prospects. The stocks that
               the Portfolio will normally invest in
               are those of seasoned companies.
   -------------------------------------------------------------------------
   LARGE CAP   AST AllianceBernstein Managed Index    AllianceBernstein L.P.
   BLEND       500 Portfolio (AST AllianceBernstein
               Growth + Value Portfolio merged into
               this Portfolio): seeks to outperform
               the Standard & Poor's 500 Composite
               Stock Price Index (the "S&P 500")
               through stock selection resulting in
               different weightings of common stocks
               relative to the index. The Portfolio
               will invest, under normal
               circumstances, at least 80% of its
               net assets in securities included in
               the S&P(R) 500.
   -------------------------------------------------------------------------
</R>


                                      17




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Investment Options continued
<R>
                                                            PORTFOLIO
                                                            ADVISOR/
      STYLE/ TYPE    INVESTMENT OBJECTIVES/POLICIES        SUB-ADVISOR
      -------------------------------------------------------------------
      LARGE CAP   AST American Century Income & Growth   American Century
      VALUE       Portfolio: seeks capital growth with   Investment
                  current income as a secondary          Management, Inc.
                  objective. The Portfolio invests
                  primarily in common stocks that offer
                  potential for capital growth, and
                  may, consistent with its investment
                  objective, invest in stocks that
                  offer potential for current income.
                  The Sub-advisor utilizes a
                  quantitative management technique
                  with a goal of building an equity
                  portfolio that provides better
                  returns than the S&P 500 Index
                  without taking on significant
                  additional risk and while attempting
                  to create a dividend yield that will
                  be greater than the S&P 500 Index.
      -------------------------------------------------------------------
      ASSET       AST American Century Strategic         American Century
      ALLOCATION/ Balanced Portfolio: seeks capital      Investment
      BALANCED    growth and current income. The         Management, Inc.
                  Sub-advisor intends to maintain
                  approximately 60% of the Portfolio's
                  assets in equity securities and the
                  remainder in bonds and other fixed
                  income securities. Both the
                  Portfolio's equity and fixed income
                  investments will fluctuate in value.
                  The equity securities will fluctuate
                  depending on the performance of the
                  companies that issued them, general
                  market and economic conditions, and
                  investor confidence. The fixed income
                  investments will be affected
                  primarily by rising or falling
                  interest rates and the credit quality
                  of the issuers.
      -------------------------------------------------------------------
      ASSET       AST Balanced Asset Allocation          American Skandia
      ALLOCATION/ Portfolio: seeks the highest           Investment
      BALANCED    potential total return consistent      Services, Inc./
                  with its specified level of risk       Prudential
                  tolerance. The Portfolio will invest   Investments LLC
                  its assets in several other American
                  Skandia Trust Portfolios. Under
                  normal market conditions, the
                  Portfolio will devote between 57.5%
                  to 72.5% of its net assets to
                  underlying portfolios investing
                  primarily in equity securities, and
                  27.5% to 42.5% of its net assets to
                  underlying portfolios investing
                  primarily in debt securities and
                  money market instruments.
      -------------------------------------------------------------------
      ASSET       AST Capital Growth Asset Allocation    American Skandia
      ALLOCATION/ Portfolio: seeks the highest           Investment
      BALANCED    potential total return consistent      Services, Inc./
                  with its specified level of risk       Prudential
                  tolerance. The Portfolio will invest   Investments LLC
                  its assets in several other American
                  Skandia Trust Portfolios. Under
                  normal market conditions, the
                  Portfolio will devote between 72.5%
                  to 87.5% of its net assets to
                  underlying portfolios investing
                  primarily in equity securities, and
                  12.5% to 27.5% of its net assets to
                  underlying portfolios investing
                  primarily in debt securities and
                  money market instruments.
      -------------------------------------------------------------------
      SPECIALTY   AST Cohen & Steers Realty Portfolio:   Cohen & Steers
                  seeks to maximize total return         Capital
                  through investment in real estate      Management, Inc.
                  securities. The Portfolio pursues its
                  investment objective by investing,
                  under normal circumstances, at least
                  80% of its net assets in securities
                  of real estate issuers. Under normal
                  circumstances, the Portfolio will
                  invest substantially all of its
                  assets in the equity securities of
                  real estate companies, i.e., a
                  company that derives at least 50% of
                  its revenues from the ownership,
                  construction, financing, management
                  or sale of real estate or that has at
                  least 50% of its assets in real
                  estate. Real estate companies may
                  include real estate investment trusts
                  or REITs.
      -------------------------------------------------------------------
      ASSET       AST Conservative Asset Allocation      American Skandia
      ALLOCATION/ Portfolio: seeks the highest           Investment
      BALANCED    potential total return consistent      Services, Inc./
                  with its specified level of risk       Prudential
                  tolerance. The Portfolio will invest   Investments LLC
                  its assets in several other American
                  Skandia Trust Portfolios. Under
                  normal market conditions, the
                  Portfolio will devote between 47.5%
                  to 62.5% of its net assets to
                  underlying portfolios investing
                  primarily in equity securities, and
                  37.5% to 52.5% of its net assets to
                  underlying portfolios investing
                  primarily in debt securities and
                  money market instruments.
      -------------------------------------------------------------------
</R>


                                      18




AMERICAN SKANDIA ANNUITIES PROSPECTUS

<R>
                                                            PORTFOLIO
                                                            ADVISOR/
    STYLE/ TYPE    INVESTMENT OBJECTIVES/POLICIES          SUB-ADVISOR
    -----------------------------------------------------------------------
    LARGE CAP   AST DeAM Large-Cap Value Portfolio:    Deutsche Asset
    VALUE       seeks maximum growth of capital by     Management, Inc.
                investing primarily in the value
                stocks of larger companies. The
                Portfolio pursues its objective,
                under normal market conditions, by
                primarily investing at least 80% of
                the value of its assets in the equity
                securities of large-sized companies
                included in the Russell 1000(R) Value
                Index. The Sub-advisor employs an
                investment strategy designed to
                maintain a portfolio of equity
                securities which approximates the
                market risk of those stocks included
                in the Russell 1000(R) Value Index,
                but which attempts to outperform the
                Russell 1000(R) Value Index through
                active stock selection.
    -----------------------------------------------------------------------
    SMALL CAP   AST DeAM Small-Cap Growth Portfolio:   Deutsche Asset
    GROWTH      seeks maximum growth of investors'     Management, Inc.
                capital from a portfolio of growth
                stocks of smaller companies. The
                Portfolio pursues its objective,
                under normal circumstances, by
                primarily investing at least 80% of
                its total assets in the equity
                securities of small-sized companies
                included in the Russell 2000
                Growth(R) Index. The Sub-advisor
                employs an investment strategy
                designed to maintain a portfolio of
                equity securities which approximates
                the market risk of those stocks
                included in the Russell 2000
                Growth(R) Index, but which attempts
                to outperform the Russell 2000
                Growth(R) Index.
    -----------------------------------------------------------------------
    SMALL CAP   AST DeAM Small-Cap Value Portfolio:    Deutsche Asset
    VALUE       seeks maximum growth of investors'     Management, Inc.
                capital. The Portfolio pursues its
                objective, under normal market
                conditions, by primarily investing at
                least 80% of its total assets in the
                equity securities of small-sized
                companies included in the Russell
                2000(R) Value Index. The Sub-advisor
                employs an investment strategy
                designed to maintain a portfolio of
                equity securities which approximates
                the market risk of those stocks
                included in the Russell 2000(R) Value
                Index, but which attempts to
                outperform the Russell 2000(R) Value
                Index.
    -----------------------------------------------------------------------
    SMALL CAP   AST Federated Aggressive Growth        Federated Equity
    GROWTH      Portfolio: seeks capital growth. The   Management
                Portfolio pursues its investment       Company of
                objective by investing primarily in    Pennsylvania/
                the stocks of small companies that     Federated Global
                are traded on national security        Investment
                exchanges, NASDAQ stock exchange and   Management Corp.
                the over-the-counter-market. Small
                companies will be defined as
                companies with market capitalizations
                similar to companies in the Russell
                2000 Growth Index. Up to 25% of the
                Portfolio's net assets may be
                invested in foreign securities, which
                are typically denominated in foreign
                currencies.
    -----------------------------------------------------------------------
    ASSET       AST First Trust Balanced Target        First Trust Advisors
    ALLOCATION/ Portfolio: seeks long-term capital     L.P.
    BALANCED    growth balanced by current income.
                The Portfolio normally invests
                approximately 65% of its total assets
                in equity securities and 35% in fixed
                income securities. Depending on
                market conditions, the equity portion
                may range between 60-70% and the
                fixed income portion between 30-40%.
                The Portfolio allocates its assets
                across a number of uniquely
                specialized investment strategies.
    -----------------------------------------------------------------------
    ASSET       AST First Trust Capital Appreciation   First Trust Advisors
    ALLOCATION/ Target Portfolio: seeks long-term      L.P.
    BALANCED    growth of capital. The Portfolio
                normally invests approximately 80% of
                its total assets in equity securities
                and 20% in fixed income securities.
                Depending on market conditions, the
                equity portion may range between
                75-85% and the fixed income portion
                between 15-25%. The Portfolio
                allocates its assets across a number
                of uniquely specialized investment
                strategies.
    -----------------------------------------------------------------------
</R>


                                      19




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Investment Options continued
<R>
                                                            PORTFOLIO
                                                            ADVISOR/
     STYLE/ TYPE    INVESTMENT OBJECTIVES/POLICIES         SUB-ADVISOR
     ---------------------------------------------------------------------
     ASSET       AST Global Allocation Portfolio:       Prudential
     ALLOCATION/ seeks to obtain the highest potential  Investments LLC
     BALANCED    total return consistent with a
                 specified level of risk tolerance.
                 The Portfolio seeks to achieve its
                 investment objective by investing in
                 several other AST Portfolios
                 ("Underlying Portfolios"). The
                 Portfolio intends its strategy of
                 investing in combinations of
                 Underlying Portfolios to result in
                 investment diversification that an
                 investor could otherwise achieve only
                 by holding numerous investments. It
                 is expected that the investment
                 objectives of such AST Portfolios
                 will be diversified.
     ---------------------------------------------------------------------
     LARGE CAP   AST Goldman Sachs Concentrated Growth  Goldman Sachs
     GROWTH      Portfolio: seeks growth of capital in  Asset
                 a manner consistent with the           Management, L.P.
                 preservation of capital. Realization
                 of income is not a significant
                 investment consideration and any
                 income realized on the Portfolio's
                 investments, therefore, will be
                 incidental to the Portfolio's
                 objective. The Portfolio will pursue
                 its objective by investing primarily
                 in equity securities of companies
                 that the Sub-advisor believes have
                 the potential to achieve capital
                 appreciation over the long-term. The
                 Portfolio seeks to achieve its
                 investment objective by investing,
                 under normal circumstances, in
                 approximately 30-45 companies that
                 are considered by the Sub-advisor to
                 be positioned for long-term growth.
     ---------------------------------------------------------------------
     MID CAP     AST Goldman Sachs Mid-Cap Growth       Goldman Sachs
     GROWTH      Portfolio: seeks long-term capital     Asset
                 growth. The Portfolio pursues its      Management, L.P.
                 investment objective, by investing
                 primarily in equity securities
                 selected for their growth potential,
                 and normally invests at least 80% of
                 the value of its assets in medium
                 capitalization companies. For
                 purposes of the Portfolio,
                 medium-sized companies are those
                 whose market capitalizations
                 (measured at the time of investment)
                 fall within the range of companies in
                 the Russell Mid Cap Growth Index. The
                 Sub-advisor seeks to identify
                 individual companies with earnings
                 growth potential that may not be
                 recognized by the market at large.
     ---------------------------------------------------------------------
     SMALL CAP   AST Goldman Sachs Small-Cap Value      Goldman Sachs
     VALUE       Portfolio: seeks long-term capital     Asset
                 appreciation. The Portfolio will seek  Management, L.P.
                 its objective through investments
                 primarily in equity securities that
                 are believed to be undervalued in the
                 marketplace. The Portfolio primarily
                 seeks companies that are small-sized,
                 based on the value of their
                 outstanding stock. The Portfolio will
                 have a non-fundamental policy to
                 invest, under normal circumstances,
                 at least 80% of the value of its
                 assets in small capitalization
                 companies. The 80% investment
                 requirement applies at the time the
                 Portfolio invests its assets. The
                 Portfolio generally defines small
                 capitalization companies as companies
                 with a capitalization of $4 billion
                 or less. (see information above
                 regarding limited availability of
                 this option.)
     ---------------------------------------------------------------------
     FIXED       AST High Yield Portfolio (formerly     Goldman Sachs
     INCOME      AST Goldman Sachs High Yield           Asset
                 Portfolio): seeks a high level of      Management, L.P.;
                 current income and may also consider   Pacific Investment
                 the potential for capital              Management
                 appreciation. The Portfolio invests,   Company LLC
                 under normal circumstances, at least   (PIMCO)
                 80% of its net assets plus any
                 borrowings for investment purposes
                 (measured at time of purchase) in
                 high yield, fixed-income securities
                 that, at the time of purchase, are
                 non-investment grade securities. Such
                 securities are commonly referred to
                 as "junk bonds".
     ---------------------------------------------------------------------
</R>


                                      20




AMERICAN SKANDIA ANNUITIES PROSPECTUS

<R>
                                                             PORTFOLIO
                                                             ADVISOR/
     STYLE/ TYPE     INVESTMENT OBJECTIVES/POLICIES         SUB-ADVISOR
    -----------------------------------------------------------------------
    INTERNATIONAL AST JPMorgan International Equity      J.P. Morgan
    EQUITY        Portfolio: seeks long-term capital     Investment
                  growth by investing in a diversified   Management Inc.
                  portfolio of international equity
                  securities. The Portfolio seeks to
                  meet its objective by investing,
                  under normal market conditions, at
                  least 80% of its assets in a
                  diversified portfolio of equity
                  securities of companies located or
                  operating in developed non-U.S.
                  countries and emerging markets of the
                  world. The equity securities will
                  ordinarily be traded on a recognized
                  foreign securities exchange or traded
                  in a foreign over-the-counter market
                  in the country where the issuer is
                  principally based, but may also be
                  traded in other countries including
                  the United States.
    -----------------------------------------------------------------------
    LARGE CAP     AST Large-Cap Value Portfolio          Dreman Value
    VALUE         (formerly AST Hotchkis and Wiley       Management LLC,
                  Large-Cap Value Portfolio): seeks      Hotchkis and Wiley
                  current income and long-term growth    Capital
                  of income, as well as capital          Management, LLC;
                  appreciation. The Portfolio invests,   J.P. Morgan
                  under normal circumstances, at least   Investment
                  80% of its net assets in common        Management Inc.
                  stocks of large cap U.S. companies.
                  The Portfolio focuses on common
                  stocks that have a high cash dividend
                  or payout yield relative to the
                  market or that possess relative value
                  within sectors.
    -----------------------------------------------------------------------
    FIXED         AST Lord Abbett Bond-Debenture         Lord, Abbett & Co.
    INCOME        Portfolio: seeks high current income   LLC
                  and the opportunity for capital
                  appreciation to produce a high total
                  return. To pursue its objective, the
                  Portfolio will invest, under normal
                  circumstances, at least 80% of the
                  value of its assets in fixed income
                  securities and normally invests
                  primarily in high yield and
                  investment grade debt securities,
                  securities convertible into common
                  stock and preferred stocks. The
                  Portfolio may find good value in high
                  yield securities, sometimes called
                  "lower-rated bonds" or "junk bonds,"
                  and frequently may have more than
                  half of its assets invested in those
                  securities. At least 20% of the
                  Portfolio's assets must be invested
                  in any combination of investment
                  grade debt securities, U.S.
                  Government securities and cash
                  equivalents. The Portfolio may also
                  make significant investments in
                  mortgage-backed securities. Although
                  the Portfolio expects to maintain a
                  weighted average maturity in the
                  range of five to twelve years, there
                  are no restrictions on the overall
                  Portfolio or on individual
                  securities. The Portfolio may invest
                  up to 20% of its net assets in equity
                  securities.
    -----------------------------------------------------------------------
    INTERNATIONAL AST LSV International Value            LSV Asset
    EQUITY        Portfolio: seeks capital growth. The   Management
                  Portfolio pursues its objective by
                  primarily investing at least 80% of
                  the value of its assets in the equity
                  securities of companies in developed
                  non-U.S. countries that are
                  represented in the MSCI EAFE Index.
                  The target of this Portfolio is to
                  outperform the unhedged US Dollar
                  total return (net of foreign dividend
                  withholding taxes) of the MSCI EAFE
                  Index. The Sub-Advisor uses
                  proprietary quantitative models to
                  manage the Portfolio in a bottom-up
                  security selection approach combined
                  with overall portfolio risk
                  management.
    -----------------------------------------------------------------------
</R>


                                      21




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Investment Options continued
<R>
                                                             PORTFOLIO
                                                             ADVISOR/
     STYLE/ TYPE     INVESTMENT OBJECTIVES/POLICIES         SUB-ADVISOR
    -----------------------------------------------------------------------
    LARGE CAP     AST Marsico Capital Growth Portfolio:  Marsico Capital
    GROWTH        seeks capital growth. Income           Management, LLC
                  realization is not an investment
                  objective and any income realized on
                  the Portfolio's investments,
                  therefore, will be incidental to the
                  Portfolio's objective. The Portfolio
                  will pursue its objective by
                  investing primarily in common stocks
                  of larger, more established
                  companies. In selecting investments
                  for the Portfolio, the Sub-advisor
                  uses an approach that combines "top
                  down" economic analysis with "bottom
                  up" stock selection. The "top down"
                  approach identifies sectors,
                  industries and companies that may
                  benefit from the trends the
                  Sub-advisor has observed. The
                  Sub-advisor then looks for individual
                  companies with earnings growth
                  potential that may not be recognized
                  by the market at large, utilizing a
                  "bottom up" stock selection process.
                  The Portfolio will normally hold a
                  core position of between 35 and 50
                  common stocks. The Portfolio may hold
                  a limited number of additional common
                  stocks at times when the Portfolio
                  manager is accumulating new
                  positions, phasing out existing or
                  responding to exceptional market
                  conditions.
    -----------------------------------------------------------------------
    INTERNATIONAL AST MFS Global Equity Portfolio:       Massachusetts
    EQUITY        seeks capital growth. Under normal     Financial Services
                  circumstances the Portfolio invests    Company
                  at least 80% of its assets in equity
                  securities of U.S. and foreign
                  issuers (including issuers in
                  developing countries). The Portfolio
                  generally seeks to purchase
                  securities of companies with
                  relatively large market
                  capitalizations relative to the
                  market in which they are traded.
    -----------------------------------------------------------------------
    LARGE CAP     AST MFS Growth Portfolio: seeks        Massachusetts
    GROWTH        long-term capital growth and future    Financial Services
                  income. Under normal market            Company
                  conditions, the Portfolio invests at
                  least 80% of its total assets in
                  common stocks and related securities,
                  such as preferred stocks, convertible
                  securities and depositary receipts,
                  of companies that the Sub-advisor
                  believes offer better than average
                  prospects for long-term growth. The
                  Sub-advisor seeks to purchase
                  securities of companies that it
                  considers well-run and poised for
                  growth. The Portfolio may invest up
                  to 35% of its net assets in foreign
                  securities.
    -----------------------------------------------------------------------
    MID CAP       AST Mid-Cap Value Portfolio (formerly  EARNEST Partners
    VALUE         AST Gabelli All-Cap Value Portfolio):  LLC/WEDGE
                  seeks to provide capital growth by     Capital
                  investing primarily in                 Management, LLP
                  mid-capitalization stocks that appear
                  to be undervalued. The Portfolio has
                  a non-fundamental policy to invest,
                  under normal circumstances, at least
                  80% of the value of its net assets in
                  mid-capitalization companies.
    -----------------------------------------------------------------------
    FIXED         AST Money Market Portfolio: seeks      Prudential
    INCOME        high current income while maintaining  Investment
                  high levels of liquidity. The          Management, Inc.
                  Portfolio attempts to accomplish its
                  objective by maintaining a
                  dollar-weighted average maturity of
                  not more than 90 days and by
                  investing in securities which have
                  effective maturities of not more than
                  397 days.
    -----------------------------------------------------------------------
    MID CAP       AST Neuberger Berman Mid-Cap Growth    Neuberger Berman
    GROWTH        Portfolio (AST Alger All-Cap Growth    Management Inc.
                  Portfolio merged into this
                  Portfolio): seeks capital growth.
                  Under normal market conditions, the
                  Portfolio primarily invests at least
                  80% of its net assets in the common
                  stocks of mid-cap companies. The
                  Sub-adviser looks for fast-growing
                  companies that are in new or rapidly
                  evolving industries.
    -----------------------------------------------------------------------
</R>


                                      22




AMERICAN SKANDIA ANNUITIES PROSPECTUS

<R>
                                                            PORTFOLIO
                                                            ADVISOR/
     STYLE/ TYPE    INVESTMENT OBJECTIVES/POLICIES         SUB-ADVISOR
     ---------------------------------------------------------------------
     MID CAP     AST Neuberger Berman Mid-Cap Value     Neuberger Berman
     VALUE       Portfolio: seeks capital growth.       Management Inc.
                 Under normal market conditions, the
                 Portfolio primarily invests at least
                 80% of its net assets in the common
                 stocks of mid-cap companies. For
                 purposes of the Portfolio, companies
                 with equity market capitalizations
                 that fall within the range of the
                 Russell Midcap(R) Index at the time
                 of investment are considered mid-cap
                 companies. Some of the Portfolio's
                 assets may be invested in the
                 securities of large-cap companies as
                 well as in small-cap companies. Under
                 the Portfolio's value-oriented
                 investment approach, the Sub-advisor
                 looks for well-managed companies
                 whose stock prices are undervalued
                 and that may rise in price before
                 other investors realize their worth.
     ---------------------------------------------------------------------
     FIXED       AST PIMCO Limited Maturity Bond        Pacific Investment
     INCOME      Portfolio: seeks to maximize total     Management
                 return consistent with preservation    Company LLC
                 of capital and prudent investment      (PIMCO)
                 management. The Portfolio will invest
                 in a diversified portfolio of
                 fixed-income securities of varying
                 maturities. The average portfolio
                 duration of the Portfolio generally
                 will vary within a one- to three-year
                 time frame based on the Sub-advisor's
                 forecast for interest rates.
     ---------------------------------------------------------------------
     FIXED       AST PIMCO Total Return Bond            Pacific Investment
     INCOME      Portfolio: seeks to maximize total     Management
                 return consistent with preservation    Company LLC
                 of capital and prudent investment      (PIMCO)
                 management. The Portfolio will invest
                 in a diversified portfolio of
                 fixed-income securities of varying
                 maturities. The average portfolio
                 duration of the Portfolio generally
                 will vary within a three- to six-year
                 time frame based on the Sub-advisor's
                 forecast for interest rates.
     ---------------------------------------------------------------------
     ASSET       AST Preservation Asset Allocation      American Skandia
     ALLOCATION/ Portfolio: seeks the highest           Investment
     BALANCED    potential total return consistent      Services, Inc./
                 with its specified level of risk       Prudential
                 tolerance. The Portfolio will invest   Investments LLC
                 its assets in several other American
                 Skandia Trust Portfolios. Under
                 normal market conditions, the
                 Portfolio will devote between 27.5%
                 to 42.5% of its net assets to
                 underlying portfolios investing
                 primarily in equity securities, and
                 57.5% to 72.5% of its net assets to
                 underlying portfolios investing
                 primarily in debt securities and
                 money market instruments.
     ---------------------------------------------------------------------
     SMALL CAP   AST Small-Cap Growth Portfolio: seeks  Eagle Asset
     GROWTH      long-term capital growth. The          Management/
                 Portfolio pursues its objective by     Neuberger Berman
                 primarily investing in the common      Management Inc.
                 stocks of small-capitalization
                 companies, which is defined as a
                 company with a market capitalization,
                 at the time of purchase, no larger
                 than the largest capitalized company
                 included in the Russell 2000 Index
                 during the most recent 11-month
                 period (based on month-end data) plus
                 the most recent data during the
                 current month.
     ---------------------------------------------------------------------
     SMALL CAP   AST Small-Cap Value Portfolio: seeks   Lee Munder
     VALUE       to provide long-term capital growth    Investments, Ltd;
                 by investing primarily in              J.P. Morgan
                 small-capitalization stocks that       Investment
                 appear to be undervalued. The          Management Inc.;
                 Portfolio will have a non-fundamental  Salomon Brothers
                 policy to invest, under normal         Asset
                 circumstances, at least 80% of the     Management Inc;
                 value of its net assets in small       Dreman Value
                 capitalization stocks. The Portfolio   Management LLC
                 will focus on common stocks that
                 appear to be undervalued.
     ---------------------------------------------------------------------
</R>


                                      23




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Investment Options continued
<R>
                                                             PORTFOLIO
                                                             ADVISOR/
     STYLE/ TYPE    INVESTMENT OBJECTIVES/POLICIES          SUB-ADVISOR
     ----------------------------------------------------------------------
     ASSET       AST T. Rowe Price Asset Allocation     T. Rowe Price
     ALLOCATION/ Portfolio: seeks a high level of       Associates, Inc.
     BALANCED    total return by investing primarily
                 in a diversified portfolio of fixed
                 income and equity securities. The
                 Portfolio normally invests
                 approximately 60% of its total assets
                 in equity securities and 40% in fixed
                 income securities. This mix may vary
                 depending on the sub-advisor's
                 outlook for the markets. The
                 Sub-advisor concentrates common stock
                 investments in larger, more
                 established companies, but the
                 Portfolio may include small and
                 medium-sized companies with good
                 growth prospects. The fixed income
                 portion of the Portfolio will be
                 allocated among investment grade
                 securities, high yield or "junk"
                 bonds, foreign high quality debt
                 securities and cash reserves.
     ----------------------------------------------------------------------
     FIXED       AST T. Rowe Price Global Bond          T. Rowe Price
     INCOME      Portfolio: seeks to provide high       International, Inc.
                 current income and capital growth by
                 investing in high-quality foreign and
                 U.S. dollar-denominated bonds. The
                 Portfolio will invest at least 80% of
                 its total assets in fixed income
                 securities, including high quality
                 bonds issued or guaranteed by U.S. or
                 foreign governments or their agencies
                 and by foreign authorities, provinces
                 and municipalities as well as
                 investment grade corporate bonds and
                 mortgage and asset-backed securities
                 of U.S. and foreign issuers. The
                 Portfolio generally invests in
                 countries where the combination of
                 fixed-income returns and currency
                 exchange rates appears attractive,
                 or, if the currency trend is
                 unfavorable, where the Sub-advisor
                 believes that the currency risk can
                 be minimized through hedging. The
                 Portfolio may also invest up to 20%
                 of its assets in the aggregate in
                 below investment-grade, high-risk
                 bonds ("junk bonds"). In addition,
                 the Portfolio may invest up to 30% of
                 its assets in mortgage-backed
                 (including derivatives, such as
                 collateralized mortgage obligations
                 and stripped mortgage securities) and
                 asset-backed securities.
     ----------------------------------------------------------------------
     LARGE CAP   AST T. Rowe Price Large-Cap Growth     T. Rowe Price
     GROWTH      Portfolio (formerly AST                Associates, Inc.
                 AllianceBernstein Large-Cap Growth):
                 seeks long-term growth of capital by
                 investing predominantly in the equity
                 securities of a limited number of
                 large, carefully selected,
                 high-quality U.S. companies that are
                 judged likely to achieve superior
                 earnings growth. The Portfolio takes
                 a growth approach to investment
                 selection and normally invests at
                 least 80% of its net assets in the
                 common stocks of large cap companies.
     ----------------------------------------------------------------------
     SPECIALTY   AST T. Rowe Price Natural Resources    T. Rowe Price
                 Portfolio: seeks long-term capital     Associates, Inc.
                 growth primarily through the common
                 stocks of companies that own or
                 develop natural resources (such as
                 energy products, precious metals and
                 forest products) and other basic
                 commodities. The Portfolio normally
                 invests primarily (at least 80% of
                 its total assets) in the common
                 stocks of natural resource companies
                 whose earnings and tangible assets
                 could benefit from accelerating
                 inflation. The Portfolio looks for
                 companies that have the ability to
                 expand production, to maintain
                 superior exploration programs and
                 production facilities, and the
                 potential to accumulate new
                 resources. At least 50% of Portfolio
                 assets will be invested in U.S.
                 securities, up to 50% of total assets
                 also may be invested in foreign
                 securities.
     ----------------------------------------------------------------------
</R>


                                      24




AMERICAN SKANDIA ANNUITIES PROSPECTUS

<R>
                                                             PORTFOLIO
                                                             ADVISOR/
    STYLE/ TYPE     INVESTMENT OBJECTIVES/POLICIES          SUB-ADVISOR
   -------------------------------------------------------------------------
   INTERNATIONAL AST William Blair International        William Blair &
   EQUITY        Growth Portfolio: seeks long-term      Company, L.L.C.
                 capital appreciation. The Portfolio
                 invests primarily in stocks of large
                 and medium-sized companies located in
                 countries included in the Morgan
                 Stanley Capital International All
                 Country World Ex-U.S. Index. Under
                 normal market conditions, the
                 portfolio invests at least 80% of its
                 net assets in equity securities. The
                 Portfolio's assets normally will be
                 allocated among not fewer than six
                 different countries and will not
                 concentrate investments in any
                 particular industry. The Portfolio
                 seeks companies that historically
                 have had superior growth,
                 profitability and quality relative to
                 local markets and relative to
                 companies within the same industry
                 worldwide, and that are expected to
                 continue such performance.
   -------------------------------------------------------------------------
   MID CAP       AIM Variable Insurance Funds -- AIM    A I M Advisors, Inc.
   GROWTH        V.I. Dynamics Fund -- Series I
                 shares: seeks long-term capital
                 growth. The Portfolio pursues its
                 objective by normally investing at
                 least 65% of its assets in common
                 stocks of mid-sized companies that
                 are included in the Russell Midcap(R)
                 Growth Index at the time of purchase.
   -------------------------------------------------------------------------
   SPECIALTY     AIM Variable Insurance Funds -- AIM    A I M Advisors, Inc.
                 V.I. Financial Services Fund --
                 Series I shares: seeks capital
                 growth. The Portfolio normally
                 invests at least 80% of its net
                 assets in the equity securities and
                 equity-related instruments of
                 companies involved in the financial
                 services sector. These companies
                 include, but are not limited to,
                 banks, insurance companies,
                 investment and miscellaneous
                 industries, and suppliers to
                 financial services companies.
   -------------------------------------------------------------------------
   SPECIALTY     AIM Variable Insurance Funds -- AIM    A I M Advisors, Inc.
                 V.I. Global Health Care Fund --
                 Series I shares: (formerly AIM V.I.
                 Health Sciences Fund) seeks capital
                 growth. The Portfolio normally
                 invests at least 80% of its net
                 assets in securities of health care
                 industry companies.
   -------------------------------------------------------------------------
   SPECIALTY     AIM Variable Insurance Funds -- AIM    A I M Advisors, Inc.
                 V.I. Technology Fund -- Series I
                 shares: seeks capital growth. The
                 Portfolio normally invests at least
                 80% of its net assets in the equity
                 securities and equity-related
                 instruments of companies engaged in
                 technology-related industries. These
                 include, but are not limited to,
                 various applied technologies,
                 hardware, software, semiconductors,
                 telecommunications equipment and
                 services and service-related
                 companies in information technology.
   -------------------------------------------------------------------------
   SMALL CAP     Evergreen VA Growth: seeks long-term   Evergreen
   GROWTH        capital growth. The Portfolio invests  Investment
                 at least 75% of its assets in common   Management
                 stocks of small- and medium-sized      Company, LLC
                 companies (i.e., companies whose
                 market capitalizations fall within
                 the market capitalization range of
                 the companies tracked by the Russell
                 2000(R) Growth Index, measured at the
                 time of purchase). The remaining
                 portion of the Portfolio's assets may
                 be invested in companies of any size.
                 The Portfolio's managers employ a
                 growth-style of equity management and
                 will purchase stocks of companies
                 that have demonstrated earnings,
                 asset values or growth potential
                 which they believe are not yet
                 reflected in the stock's market
                 price. The Portfolio's managers
                 consider earnings growth above the
                 average earnings growth of companies
                 included in the Russell 2000(R)
                 Growth Index as a key factor in
                 selecting investments.
   -------------------------------------------------------------------------
</R>


                                      25




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Investment Options continued
<R>
                                                              PORTFOLIO
                                                              ADVISOR/
        STYLE/ TYPE     INVESTMENT OBJECTIVES/POLICIES       SUB-ADVISOR
       ------------------------------------------------------------------
       INTERNATIONAL Evergreen VA International Equity:     Evergreen
       EQUITY        seeks long-term capital growth and     Investment
                     secondarily, modest income. The        Management
                     Portfolio normally invests 80% of its  Company, LLC
                     assets in equity securities issued by
                     established, quality, non-U.S.
                     companies located in countries with
                     developed markets and may purchase
                     across all market capitalizations.
                     The Portfolio normally invests at
                     least 65% of its assets in securities
                     of companies in at least three
                     different countries (other than the
                     U.S.). The Portfolio may also invest
                     in emerging markets. The Portfolio's
                     managers seek both growth and value
                     opportunities, and the Portfolio
                     intends to seek modest income from
                     dividends paid by its equity holdings.
       ------------------------------------------------------------------
       SPECIALTY     Evergreen VA Omega: seeks long-term    Evergreen
                     capital growth. The Portfolio invests  Investment
                     primarily, and under normal            Management
                     conditions substantially all of its    Company, LLC
                     assets, in common stocks and
                     securities convertible into common
                     stocks of U.S. companies across all
                     market capitalizations. The
                     Portfolio's managers employ a growth
                     style of equity management. "Growth"
                     stocks are stocks of companies that
                     the Portfolio's managers believe have
                     anticipated earnings ranging from
                     steady to accelerated growth. The
                     Portfolio may invest up to 25% of its
                     assets in foreign securities.
       ------------------------------------------------------------------
       SPECIALTY     S&P(R) Target 24: seeks to provide     First Trust
                     above-average total return. The        Advisors L.P.
                     Portfolio seeks to achieve its
                     objective by investing in common
                     stocks issued by companies that have
                     the potential for capital
                     appreciation. The Portfolio invests
                     primarily in the common stocks of
                     twenty-four companies selected from a
                     subset of the stocks included in the
                     Standard & Poor's 500 Composite Stock
                     Price Index. The subset of stocks
                     will be taken from each of the eight
                     largest economic sectors of the S&P
                     500 Index based on the sector's
                     market capitalization.
       ------------------------------------------------------------------
       SPECIALTY     First Trust(R) 10 Uncommon Values:     First Trust
                     seeks to provide above-average         Advisors L.P.
                     capital appreciation. The Portfolio
                     seeks to achieve its objective by
                     investing primarily in the ten common
                     stocks selected by the Investment
                     Policy Committee of Lehman Brothers
                     Inc. ("Lehman Brothers") with the
                     assistance of the Research Department
                     of Lehman Brothers which, in their
                     opinion have the greatest potential
                     for capital appreciation during the
                     next year. The stocks included in the
                     Portfolio are adjusted annually on or
                     about July 1st in accordance with the
                     selections of Lehman Brothers.
       ------------------------------------------------------------------
       SPECIALTY     Global Dividend Target 15: seeks to    First Trust
                     provide above-average total return.    Advisors L.P.
                     The Portfolio seeks to achieve its
                     objective by investing in common
                     stocks issued by companies that are
                     expected to provide income and to
                     have the potential for capital
                     appreciation. The Portfolio invests
                     primarily in the common stocks of the
                     companies which are components of the
                     DJIA, the Financial Times Industrial
                     Ordinary Share Index ("FT Index") and
                     the Hang Seng Index. The Portfolio
                     primarily consists of common stocks
                     of the five companies with the lowest
                     per share stock prices of the ten
                     companies in each of the DJIA, FT
                     Index and Hang Seng Index,
                     respectively, that have the highest
                     dividend yield in the respective
                     index on or about the applicable
                     stock selection date.
       ------------------------------------------------------------------
       SPECIALTY     Nasdaq(R) Target 15: seeks to provide  First Trust
                     above-average total return. The        Advisors L.P.
                     Portfolio seeks to achieve its
                     objective by investing in common
                     stocks issued by companies that are
                     expected to have the potential for
                     capital appreciation. The Portfolio
                     invests primarily in the common
                     stocks of fifteen companies selected
                     from a pre-screened subset of the
                     stocks included in the Nasdaq-100
                     Index(R) on or about the applicable
                     stock selection date through a
                     multi-step process.
       ------------------------------------------------------------------
</R>


                                      26




AMERICAN SKANDIA ANNUITIES PROSPECTUS

<R>
                                                             PORTFOLIO
                                                             ADVISOR/
      STYLE/ TYPE     INVESTMENT OBJECTIVES/POLICIES        SUB-ADVISOR
     ---------------------------------------------------------------------
     SPECIALTY     Target Managed VIP: seeks to provide   First Trust
                   above-average total return. The        Advisors L.P.
                   Portfolio seeks to achieve its
                   objective by investing in common
                   stocks of companies that are
                   identified by a model based on six
                   uniquely specialized strategies --
                   The Dow/SM/ DART 5, the European
                   Target 20, the Nasdaq(R) Target 15,
                   the S&P Target 24, the Target Small
                   Cap and the Value Line(R) Target 25.
     ---------------------------------------------------------------------
     SPECIALTY     The Dow/SM/ Target Dividend: seeks to  First Trust
                   provide above-average total return.    Advisors L.P.
                   The Portfolio seeks to achieve its
                   objective by investing in common
                   stocks issued by companies that are
                   expected to provided income and to
                   have the potential for capital
                   appreciation. The Portfolio invests
                   primarily in the 20 common stocks
                   from the Dow Jones Select Dividend
                   Index/SM/ with the best overall
                   ranking on both the change in return
                   on assets over the last 12 months and
                   price-to-book ratio as of the close
                   of business on or about the
                   applicable stock selection date.
     ---------------------------------------------------------------------
     SPECIALTY     The Dow/SM/ DART 10: seeks to provide  First Trust
                   above-average total return. The        Advisors L.P.
                   Portfolio seeks to achieve its
                   objective by investing in common
                   stocks issued by companies that are
                   expected to provide income and to
                   have the potential for capital
                   appreciation. The Portfolio invests
                   primarily in the common stocks of the
                   ten companies in the DJIA that have
                   the highest combined dividend yields
                   and buyback ratios on or about the
                   applicable stock selection date.
     ---------------------------------------------------------------------
     SPECIALTY     Value Line(R) Target 25: seeks to      First Trust
                   provide above-average capital          Advisors L.P.
                   appreciation. The Portfolio seeks to
                   achieve its objective by investing in
                   25 of the 100 common stocks that
                   Value Line(R) gives a #1 ranking for
                   Timeliness(TM) which have recently
                   exhibited certain positive financial
                   attributes as of the close of
                   business on the applicable stock
                   selection date through a multi-step
                   process. Value Line(R) ranks 1,700
                   stocks of which only 100 are given
                   their #1 ranking for Timeliness,(TM)
                   which measures Value Line's view of
                   their probable price performance
                   during the next 6 to 12 months
                   relative to the others. Value Line(R)
                   bases their rankings on a long-term
                   trend of earnings, prices, recent
                   earnings, price momentum, and
                   earnings surprise.
     ---------------------------------------------------------------------
     INTERNATIONAL GVIT Developing Markets: seeks         Gartmore Global
     EQUITY        long-term capital appreciation, under  Asset
                   normal conditions by investing at      Management
                   least 80% of its total assets in       Trust/Gartmore
                   stocks of companies of any size based  Global Partners
                   in the world's developing economies.
                   Under normal market conditions,
                   investments are maintained in at
                   least six countries at all times and
                   no more than 35% of total assets in
                   any single one of them.
     ---------------------------------------------------------------------
       EACH PROFUND VP PORTFOLIO DESCRIBED BELOW PURSUES AN INVESTMENT
     STRATEGY THAT SEEKS TO PROVIDE DAILYINVESTMENT RESULTS, BEFORE FEES
       AND EXPENSES, THAT MATCH A WIDELY FOLLOWED INDEX, INCREASED BY A
     SPECIFIEDFACTOR RELATIVE TO THE INDEX, OR THAT MATCH THE INVERSE OF
        THE INDEX OR THE INVERSE OF THE INDEX MULTIPLIED BY ASPECIFIED
        FACTOR. THE INVESTMENT STRATEGY OF SOME OF THE PORTFOLIOS MAY
     MAGNIFY (BOTH POSITIVELY ANDNEGATIVELY) THE DAILY INVESTMENT RESULTS
          OF THE APPLICABLE INDEX. IT IS RECOMMENDED THAT ONLY THOSE
        ANNUITYOWNERS WHO ENGAGE A FINANCIAL ADVISOR TO ALLOCATE THEIR
     ACCOUNT VALUE USING A STRATEGIC OR TACTICAL ASSETALLOCATION STRATEGY
     INVEST IN THESE PORTFOLIOS. THE PORTFOLIOS ARE ARRANGED BASED ON THE
               INDEX ON WHICH ITSINVESTMENT STRATEGY IS BASED.
     ---------------------------------------------------------------------
     SPECIALTY     ProFund VP Bull: seeks daily           ProFund Advisors
                   investment results, before fees and    LLC
                   expenses, that correspond to the
                   daily performance of the S&P 500(R)
                   Index.
     ---------------------------------------------------------------------
</R>


                                      27




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Investment Options continued
<R>
                                                            PORTFOLIO
                                                            ADVISOR/
      STYLE/ TYPE    INVESTMENT OBJECTIVES/POLICIES        SUB-ADVISOR
      -------------------------------------------------------------------
       SPECIALTY  ProFund VP Bear: seeks daily           ProFund Advisors
                  investment results, before fees and    LLC
                  expenses, that correspond to the
                  inverse (opposite) of the daily
                  performance of the S&P 500(R) Index.
                  If ProFund VP Bear is successful in
                  meeting its objective, its net asset
                  value should gain approximately the
                  same amount, on a percentage basis,
                  as any decrease in the S&P 500(R)
                  Index when the Index declines on a
                  given day. Conversely, its net asset
                  value should lose approximately the
                  same, on a percentage basis, as any
                  increase in the Index when the Index
                  rises on a given day.
      -------------------------------------------------------------------
       SPECIALTY  ProFund VP UltraBull: seeks daily      ProFund Advisors
                  investment results, before fees and    LLC
                  expenses, that correspond to twice
                  (200%) the daily performance of the
                  S&P 500(R) Index. If ProFund VP
                  UltraBull is successful in meeting
                  its objective, its net asset value
                  should gain approximately twice as
                  much, on a percentage basis, as the
                  S&P 500(R) Index when the Index rises
                  on a given day. Conversely, its net
                  asset value should lose approximately
                  twice as much, on a percentage basis,
                  as the Index when the Index declines
                  on a given day.
      -------------------------------------------------------------------
       THE S&P 500(R) INDEX IS A MEASURE OF LARGE-CAP U.S. STOCK MARKET
      PERFORMANCE. IT IS A FULL FREE FLOAT-ADJUSTEDMARKET CAPITALIZATION
      WEIGHTED INDEX OF 500 U.S. OPERATING COMPANIES AND REITS SELECTED
        BY AN S&P U.S.INDEX COMMITTEE THROUGH A NON-MECHANICAL PROCESS
               THAT FACTORS CRITERIA SUCH AS LIQUIDITY, PRICE,
         MARKETCAPITALIZATION AND FINANCIAL VIABILITY. RECONSTITUTION
                OCCURS BOTH ON A QUARTERLY AND ONGOING BASIS.
      -------------------------------------------------------------------
       SPECIALTY  ProFund VP OTC: seeks daily            ProFund Advisors
                  investment results, before fees and    LLC
                  expenses, that correspond to the
                  daily performance of the NASDAQ-100
                  Index(R).
      -------------------------------------------------------------------
       SPECIALTY  ProFund VP Short OTC: seeks daily      ProFund Advisors
                  investment results, before fees and    LLC
                  expenses, that correspond to the
                  inverse (opposite) of the daily
                  performance of the NASDAQ-100
                  Index(R). If ProFund VP Short OTC is
                  successful in meeting its objective,
                  its net asset value should gain
                  approximately the same amount, on a
                  percentage basis, as any decrease in
                  the NASDAQ-100 Index(R) when the
                  Index declines on a given day.
                  Conversely, its net asset value
                  should lose approximately the same,
                  on a percentage basis, as any
                  increase in the Index when the Index
                  rises on a given day.
      -------------------------------------------------------------------
       SPECIALTY  ProFund VP UltraOTC: seeks daily       ProFund Advisors
                  investment results, before fees and    LLC
                  expenses, that correspond to twice
                  (200%) the daily performance of the
                  NASDAQ-100 Index(R). If ProFund VP
                  UltraOTC is successful in meeting its
                  objective, its net asset value should
                  gain approximately twice as much, on
                  a percentage basis, as the NASDAQ-100
                  Index(R) when the Index rises on a
                  given day. Conversely, its net asset
                  value should lose approximately twice
                  as much, on a percentage basis, as
                  the Index when the Index declines on
                  a given day.
      -------------------------------------------------------------------
      THE NASDAQ-100 INDEX(R) INCLUDES 100 OF THE LARGEST NON-FINANCIAL
         DOMESTIC AND INTERNATIONAL ISSUES LISTEDON THE NASDAQ STOCK
         MARKET. TO BE ELIGIBLE FOR INCLUSION COMPANIES CANNOT BE IN
       BANKRUPTCY PROCEEDINGSAND MUST MEET CERTAIN ADDITIONAL CRITERIA
      INCLUDING MINIMUM TRADING VOLUME AND "SEASONING" REQUIREMENTS.THE
         INDEX IS CALCULATED UNDER A MODIFIED CAPITALIZATION-WEIGHTED
       METHODOLOGY. RECONSTITUTION ANDREBALANCING OCCURS ON AN ANNUAL,
                         QUARTERLY AND ONGOING BASIS.
      -------------------------------------------------------------------
</R>


                                      28




AMERICAN SKANDIA ANNUITIES PROSPECTUS

<R>
                                                            PORTFOLIO
                                                            ADVISOR/
      STYLE/ TYPE    INVESTMENT OBJECTIVES/POLICIES        SUB-ADVISOR
      -------------------------------------------------------------------
       SPECIALTY  ProFund VP UltraSmall-Cap: seeks       ProFund Advisors
                  daily investment results, before fees  LLC
                  and expenses, that correspond to
                  twice (200%) the daily performance of
                  the Russell 2000(R) Index. If ProFund
                  VP UltraSmall-Cap is successful in
                  meeting its objective, its net asset
                  value should gain approximately twice
                  as much, on a percentage basis, as
                  the Russell 2000 Index(R) when the
                  Index rises on a given day.
                  Conversely, its net asset value
                  should lose approximately twice as
                  much, on a percentage basis, as the
                  Index when the Index declines on a
                  given day.
      -------------------------------------------------------------------
       SPECIALTY  ProFund VP Short Small-Cap: seeks      ProFund Advisors
                  daily investment results, before fees  LLC
                  and expenses, that correspond to the
                  inverse (opposite) of the daily
                  performance of the Russell 2000(R)
                  Index. If ProFund VP Short Small-Cap
                  is successful in meeting its
                  objective, its net asset value should
                  gain approximately the same amount,
                  on a percentage basis, as any
                  decrease in the Russell 2000 Index
                  when the Index declines on a given
                  day. Conversely, its net asset value
                  should lose approximately the same
                  amount, on a percentage basis, as any
                  increase in the Index when the Index
                  rises on a given day.
      -------------------------------------------------------------------
      THE RUSSELL 2000 INDEX IS A MEASURE OF SMALL-CAP U.S. STOCK MARKET
      PERFORMANCE. IT IS AN ADJUSTED MARKETCAPITALIZATION WEIGHTED INDEX
        CONTAINING APPROXIMATELY 2000 OF THE SMALLEST COMPANIES IN THE
          RUSSELL 3000INDEX OR APPROXIMATELY 8% OF THE TOTAL MARKET
      CAPITALIZATION OF THE RUSSELL 3000 INDEX, WHICH IN TURNREPRESENTS
       APPROXIMATELY 98% OF THE INVESTABLE U.S. EQUITY MARKET. ALL U.S.
        COMPANIES LISTED ON THE NYSE,AMEX OR NASDAQ MEETING AN INITIAL
       MINIMUM ($1) PRICE ARE CONSIDERED FOR INCLUSION. RECONSTITUTION
        OCCURSANNUALLY. SECURITIES ARE NOT REPLACED IF THEY LEAVE THE
         INDEX, HOWEVER, NEW ISSUE SECURITIES MEETING OTHERMEMBERSHIP
               REQUIREMENTS MAY BE ADDED ON A QUARTERLY BASIS.
      -------------------------------------------------------------------
       SPECIALTY  ProFund VP UltraMid-Cap: seeks daily   ProFund Advisors
                  investment results, before fees and    LLC
                  expenses, that correspond to twice
                  (200%) the daily performance of the
                  S&P MidCap 400 Index(R). If ProFund
                  VP UltraMid-Cap is successful in
                  meeting its objective, its net asset
                  value should gain approximately twice
                  as much, on a percentage basis, as
                  the S&P MidCap 400 Index when the
                  Index rises on a given day.
                  Conversely, its net asset value
                  should lose approximately twice as
                  much, on a percentage basis, as the
                  Index when the Index declines on a
                  given day.
      -------------------------------------------------------------------
       SPECIALTY  ProFund VP Short Mid-Cap: seeks daily  ProFund Advisors
                  investment results, before fees and    LLC
                  expenses, that correspond to the
                  inverse (opposite) of the daily
                  performance of the S&P MidCap 400
                  Index(R). If ProFund VP Short Mid-Cap
                  is successful in meeting its
                  objective, its net asset value should
                  gain approximately the same amount,
                  on a percentage basis, as any
                  decrease in the S&P MidCap 400 Index
                  when the Index declines on a given
                  day. Conversely, its net asset value
                  should lose approximately the same
                  amount, on a percentage basis, as any
                  increase in the Index when the Index
                  rises on a given day.
      -------------------------------------------------------------------
        THE S&P MIDCAP 400 INDEX IS A MEASURE OF MID-SIZE COMPANY U.S.
           STOCK MARKET PERFORMANCE. IT IS A FLOAT-ADJUSTED MARKET
      CAPITALIZATION WEIGHTED INDEX OF 400 U.S. OPERATING COMPANIES AND
       REITS. SECURITIES ARESELECTED FOR INCLUSION IN THE INDEX BY THE
          S&P U.S. INDEX COMMITTEE THROUGH A NON-MECHANICAL PROCESS
            THATFACTORS CRITERIA SUCH AS LIQUIDITY, PRICE, MARKET
      CAPITALIZATION AND FINANCIAL VIABILITY. RECONSTITUTION OCCURSBOTH
                      ON A QUARTERLY AND ONGOING BASIS.
      -------------------------------------------------------------------
</R>


                                      29




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Investment Options continued
<R>
                                                            PORTFOLIO
                                                            ADVISOR/
      STYLE/ TYPE    INVESTMENT OBJECTIVES/POLICIES        SUB-ADVISOR
      -------------------------------------------------------------------
       SMALL CAP  ProFund VP Small-Cap Value: seeks      ProFund Advisors
       VALUE      daily investment results, before fees  LLC
                  and expenses, that correspond to the
                  daily performance of the S&P SmallCap
                  600/Citigroup Value Index(R). The S&P
                  SmallCap 600/Citigroup Value Index is
                  designed to provide a comprehensive
                  measure of small-cap U.S. equity
                  "value" performance. It is an
                  unmanaged float adjusted market
                  capitalization weighted index
                  comprised of stocks representing
                  approximately half the market
                  capitalization of the S&P SmallCap
                  600 Index that have been identified
                  as being on the value end of the
                  growth-value spectrum.
      -------------------------------------------------------------------
       SMALL CAP  ProFund VP Small-Cap Growth: seeks     ProFund Advisors
       GROWTH     daily investment results, before fees  LLC
                  and expenses, that correspond to the
                  daily performance of the S&P SmallCap
                  600/Citigroup Growth Index(R). The
                  S&P SmallCap 600/Citigroup Growth
                  Index is designed to provide a
                  comprehensive measure of small-cap
                  U.S. equity "growth" performance. It
                  is an unmanaged float adjusted market
                  capitalization weighted index
                  comprised of stocks representing
                  approximately half the market
                  capitalization of the S&P SmallCap
                  600 Index that have been identified
                  as being on the growth end of the
                  growth-value spectrum.
      -------------------------------------------------------------------
      THE S&P SMALLCAP 600 INDEX IS A MEASURE OF SMALL-CAP COMPANY U.S.
            STOCK MARKET PERFORMANCE. IT IS AFLOAT ADJUSTED MARKET
        CAPITALIZATION WEIGHTED INDEX OF 600 U.S. OPERATING COMPANIES.
         SECURITIES ARE SELECTEDFOR INCLUSION IN THE INDEX BY AN S&P
       COMMITTEE THROUGH A NONMECHANICAL PROCESS THAT FACTORS CRITERIA
          SUCHAS LIQUIDITY, PRICE, MARKET CAPITALIZATION, FINANCIAL
                         VIABILITY, AND PUBLIC FLOAT.
      -------------------------------------------------------------------
       LARGE CAP  ProFund VP Large-Cap Value: seeks      ProFund Advisors
       VALUE      daily investment results, before fees  LLC
                  and expenses, that correspond to the
                  daily performance of the S&P
                  500/Citigroup Value Index(R).
      -------------------------------------------------------------------
       LARGE CAP  ProFund VP Large-Cap Growth: seeks     ProFund Advisors
       GROWTH     daily investment results, before fees  LLC
                  and expenses, that correspond to the
                  daily performance of the S&P
                  500/Citigroup Growth Index(R).
      -------------------------------------------------------------------
         THE S&P 500/CITIGROUP GROWTH INDEX IS DESIGNED TO PROVIDE A
            COMPREHENSIVE MEASURE OF LARGE-CAP U.S.EQUITY "GROWTH"
            PERFORMANCE. IT IS AN UNMANAGED FLOAT ADJUSTED MARKET
        CAPITALIZATION WEIGHTED INDEXCOMPRISED OF STOCKS REPRESENTING
      APPROXIMATELY HALF THE MARKET CAPITALIZATION OF THE S&P 500 INDEX
          THATHAVE BEEN IDENTIFIED AS BEING ON THE GROWTH END OF THE
                            GROWTH-VALUE SPECTRUM.
      -------------------------------------------------------------------
       MID CAP    ProFund VP Mid-Cap Value: seeks daily  ProFund Advisors
       VALUE      investment results, before fees and    LLC
                  expenses, that correspond to the
                  daily performance of the S&P MidCap
                  400/Citigroup Value Index(R).
      -------------------------------------------------------------------
       MID CAP    ProFund VP Mid-Cap Growth: seeks       ProFund Advisors
       GROWTH     daily investment results, before fees  LLC
                  and expenses, that correspond to the
                  daily performance of the S&P MidCap
                  400/Citigroup Growth Index(R).
      -------------------------------------------------------------------
      THE S&P MIDCAP 400/CITIGROUP VALUE INDEX IS DESIGNED TO PROVIDE A
       COMPREHENSIVE MEASURE OF MID-CAPU.S. EQUITY "VALUE" PERFORMANCE.
       IT IS AN UNMANAGED FLOAT ADJUSTED MARKET CAPITALIZATION WEIGHTED
         INDEXCOMPRISED OF STOCKS REPRESENTING APPROXIMATELY HALF THE
       MARKET CAPITALIZATION OF THE S&P MIDCAP 400 INDEXTHAT HAVE BEEN
      IDENTIFIED AS BEING ON THE VALUE END OF THE GROWTH-VALUE SPECTRUM.
      -------------------------------------------------------------------
</R>


                                      30




AMERICAN SKANDIA ANNUITIES PROSPECTUS

<R>
                                                             PORTFOLIO
                                                             ADVISOR/
      STYLE/ TYPE     INVESTMENT OBJECTIVES/POLICIES        SUB-ADVISOR
     ---------------------------------------------------------------------
     SPECIALTY     ProFund VP Asia 30: seeks daily        ProFund Advisors
                   investment results, before fees and    LLC
                   expenses, that correspond to the
                   daily performance of the ProFunds
                   Asia 30 Index. The ProFunds Asia 30
                   Index, created by ProFund Advisors,
                   is composed of 30 companies whose
                   principal offices are located in the
                   Asia/Pacific region, excluding Japan,
                   and whose securities are traded on
                   U.S. exchanges or on the NASDAQ as
                   depository receipts or ordinary
                   shares. The component companies in
                   the ProFunds Asia 30 Index are
                   determined annually based upon their
                   U.S. dollar-traded volume. Their
                   relative weights are determined based
                   on the modified market capitalization
                   method.
     ---------------------------------------------------------------------
     INTERNATIONAL ProFund VP Europe 30: seeks daily      ProFund Advisors
     EQUITY        investment results, before fees and    LLC
                   expenses, that correspond to the
                   daily performance of the ProFunds
                   Europe 30 Index. The ProFunds Europe
                   30 Index, created by ProFund
                   Advisors, is composed of companies
                   whose principal offices are located
                   in Europe and whose securities are
                   traded on U.S. exchanges or on the
                   NASDAQ as depositary receipts or
                   ordinary shares. The component
                   companies in the ProFunds Europe 30
                   Index are determined annually based
                   upon their U.S. dollar-traded volume.
                   Their relative weights are determined
                   based on a modified market
                   capitalization method.
     ---------------------------------------------------------------------
     SPECIALTY     ProFund VP Japan: seeks daily          ProFund Advisors
                   investment results, before fees and    LLC
                   expenses, that correspond to the
                   daily performance of the Nikkei 225
                   Stock Average. The Fund determines
                   its success in meeting this
                   investment objective by comparing its
                   daily return on a given day with the
                   daily performance of the
                   dollar-denominated Nikkei 225 futures
                   contracts traded in the United
                   States. The Fund seeks to provide a
                   return consistent with an investment
                   in the component equities in the
                   Nikkei 225 Stock Average hedged to
                   U.S. dollars.
     ---------------------------------------------------------------------
       THE NIKKEI 225 STOCK AVERAGE INDEX (NIKKEI INDEX) IS A MODIFIED
        PRICE-WEIGHTED INDEX OF THE 225 MOSTACTIVELY TRADED AND LIQUID
      JAPANESE COMPANIES LISTED IN THE FIRST SECTION OF THE TOKYO STOCK
     EXCHANGE (TSE).THE NIKKEI INDEX IS CALCULATED FROM THE PRICES OF THE
          225 TSE FIRST SECTION STOCKS SELECTED TO REPRESENT ABROAD
     CROSS-SECTION OF JAPANESE INDUSTRIES AND THE OVERALL PERFORMANCE OF
     THE JAPANESE EQUITY MARKET.NIHON KEIZAI SHIMBUN, INC. IS THE SPONSOR
      OF THE INDEX. COMPANIES IN THE NIKKEI INDEX ARE REVIEWEDANNUALLY.
     EMPHASIS IS PLACED ON MAINTAINING THE INDEX'S HISTORICAL CONTINUITY
          WHILE KEEPING THE INDEXCOMPOSED OF STOCKS WITH HIGH MARKET
         LIQUIDITY. THE SPONSOR CONSULTS WITH VARIOUS MARKET EXPERTS,
     CONSIDERSCOMPANY SPECIFIC INFORMATION AND THE OVERALL COMPOSITION OF
                                  THE INDEX.
     ---------------------------------------------------------------------
     SPECIALTY     ProFund VP Banks: seeks daily          ProFund Advisors
                   investment results, before fees and    LLC
                   expenses, that correspond to the
                   daily performance of the Dow Jones
                   U.S. Banks Index. The Dow Jones U.S.
                   Banks Index measures the performance
                   of the banking sector of the U.S.
                   equity market. Component companies
                   include regional and major U.S.
                   domiciled banks, savings and loans,
                   engaged in a wide rage of financial
                   services, including retail banking,
                   loans and money transmissions.
     ---------------------------------------------------------------------
     SPECIALTY     ProFund VP Basic Materials: seeks      ProFund Advisors
                   daily investment results, before fees  LLC
                   and expenses, that correspond to the
                   daily performance of the Dow Jones
                   U.S. Basic Materials Sector Index.
                   The Dow Jones U.S. Basic Materials
                   Sector Index measures the performance
                   of the basic materials industry of
                   the U.S. equity market. Component
                   companies are involved in the
                   production of aluminum, steel, non
                   ferrous metals, commodity chemicals,
                   specialty chemicals, forest products,
                   paper products, as well as the mining
                   of precious metals and coal.
     ---------------------------------------------------------------------
</R>


                                      31




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Investment Options continued
<R>
                                                            PORTFOLIO
                                                            ADVISOR/
      STYLE/ TYPE    INVESTMENT OBJECTIVES/POLICIES        SUB-ADVISOR
      -------------------------------------------------------------------
       SPECIALTY  ProFund VP Biotechnology: seeks daily  ProFund Advisors
                  investment results, before fees and    LLC
                  expenses, that correspond to the
                  daily performance of the Dow Jones
                  U.S. Biotechnology Index. The Dow
                  Jones U.S. Biotechnology Index
                  measures the performance of the
                  biotechnology subsector of the U.S.
                  equity market. Component companies
                  engage in research and development of
                  biological substances for drug
                  discovery and diagnostic development
                  these companies derive most of their
                  revenue from the sale of licensing of
                  drugs and diagnostic tools.
      -------------------------------------------------------------------
       SPECIALTY  ProFund VP Consumer Goods: seeks       ProFund Advisors
                  daily investment results, before fees  LLC
                  and expenses, that correspond to the
                  daily performance of the Dow Jones
                  U.S. Consumer Goods Index. The Dow
                  Jones U.S. Consumer Goods Index
                  measures the performance of consumer
                  spending in the goods industry of the
                  U.S. equity market. Component
                  companies include automobiles and
                  auto parts and tires, brewers and
                  distillers, farming and fishing,
                  durable and non-durable household
                  product manufacturers, cosmetic
                  companies, food and tobacco products,
                  clothing, accessories and footwear.
      -------------------------------------------------------------------
       SPECIALTY  ProFund VP Consumer Services: seeks    ProFund Advisors
                  daily investment results, before fees  LLC
                  and expenses, that correspond to the
                  daily performance of the Dow Jones
                  U.S. Consumer Services Index. The Dow
                  Jones U.S. Consumer Services Index
                  measures the performance of consumer
                  spending in the services industry of
                  the U.S. equity market. Component
                  companies include airlines,
                  broadcasting and entertainment,
                  apparel and broadline retailers, food
                  and drug retailers, media agencies,
                  publishing, gambling, hotels,
                  restaurants and bars, and travel and
                  tourism.
      -------------------------------------------------------------------
       SPECIALTY  ProFund VP Financials: seeks daily     ProFund Advisors
                  investment results, before fees and    LLC
                  expenses, that correspond to the
                  daily performance of the Dow Jones
                  U.S. Financials Sector Index. The Dow
                  Jones U.S. Financials Sector Index
                  measures the performance of the
                  financial services industry of the
                  U.S. equity market. Component
                  companies include regional banks;
                  major U.S. domiciled international
                  banks; full line, life, and property
                  and casualty insurance companies;
                  companies that invest, directly or
                  indirectly in real estate;
                  diversified financial companies such
                  as Fannie Mae, credit card insurers,
                  check cashing companies, mortgage
                  lenders and investment advisers;
                  securities brokers and dealers,
                  including investment banks, merchant
                  banks and online brokers; and
                  publicly traded stock exchanges.
      -------------------------------------------------------------------
       SPECIALTY  ProFund VP Health Care: seeks daily    ProFund Advisors
                  investment results, before fees and    LLC
                  expenses, that correspond to the
                  daily performance of the Dow Jones
                  U.S. Health Care Index. The Dow Jones
                  U.S. Health Care Index measures the
                  performance of the healthcare
                  industry of the U.S. equity market.
                  Component companies include health
                  care providers, biotechnology
                  companies, medical supplies, advanced
                  medical devices and pharmaceuticals.
      -------------------------------------------------------------------
       SPECIALTY  ProFund VP Industrials: seeks daily    ProFund Advisors
                  investment results, before fees and    LLC
                  expenses, that correspond to the
                  daily performance of the Dow Jones
                  U.S. Industrials Index. The Dow Jones
                  U.S. Industrials Index measures the
                  performance of the industrial
                  industry of the U.S. equity market.
                  Component companies include building
                  materials, heavy construction,
                  factory equipment, heavy machinery,
                  industrial services, pollution
                  control, containers and packaging,
                  industrial diversified, air freight,
                  marine transportation, railroads,
                  trucking, land-transportation
                  equipment, shipbuilding,
                  transportation services, advanced
                  industrial equipment, electric
                  components and equipment, and
                  aerospace.
      -------------------------------------------------------------------
</R>


                                      32




AMERICAN SKANDIA ANNUITIES PROSPECTUS

<R>
                                                            PORTFOLIO
                                                            ADVISOR/
      STYLE/ TYPE    INVESTMENT OBJECTIVES/POLICIES        SUB-ADVISOR
      -------------------------------------------------------------------
       SPECIALTY  ProFund VP Internet: seeks daily       ProFund Advisors
                  investment results, before fees and    LLC
                  expenses, that correspond to the
                  daily performance of the Dow Jones
                  Composite Internet Index. The Dow
                  Jones Composite Internet Index
                  measures the performance of stocks in
                  the U.S. equity markets that generate
                  the majority of their revenues from
                  the Internet. The Index is composed
                  of two sub-groups: Internet Commerce
                  -- companies that derive the majority
                  of their revenues from providing
                  goods and/or services through an open
                  network, such as a web site. Internet
                  Services -- companies that derive the
                  majority of their revenues from
                  providing access to the Internet or
                  providing services to people using
                  the Internet.
      -------------------------------------------------------------------
       SPECIALTY  ProFund VP Oil & Gas: seeks daily      ProFund Advisors
                  investment results, before fees and    LLC
                  expenses, that correspond to the
                  daily performance of the Dow Jones
                  U.S. Oil & Gas Index. The Dow Jones
                  U.S. Oil & Gas Index measures the
                  performance of the oil and gas
                  industry of the U.S. equity market.
                  Component companies include oil
                  drilling equipment and services, oil
                  companies-major, oil
                  companies-secondary, pipelines,
                  liquid, solid or gaseous fossil fuel
                  producers and service companies.
      -------------------------------------------------------------------
       SPECIALTY  ProFund VP Pharmaceuticals: seeks      ProFund Advisors
                  daily investment results, before fees  LLC
                  and expenses, that correspond to the
                  daily performance of the Dow Jones
                  U.S. Pharmaceuticals Index. The Dow
                  Jones U.S. Pharmaceuticals Index
                  measures the performance of the
                  pharmaceuticals subsector of the U.S.
                  equity market. Component companies
                  include the makers of prescription
                  and over-the-counter drugs such as
                  birth control pills, vaccines,
                  aspirin and cold remedies.
      -------------------------------------------------------------------
       SPECIALTY  ProFund VP Precious Metals: seeks      ProFund Advisors
                  daily investment results, before fees  LLC
                  and expenses, that correspond to the
                  daily performance of the Dow Jones
                  Precious Metals Index. The Dow Jones
                  Precious Metals Index measures the
                  performance of the precious metals
                  mining industry. Component companies
                  include leading miners and producers
                  of gold, silver and platinum-group
                  metals whose securities are available
                  to U.S. investors during U.S. trading
                  hours. It is a float-adjusted
                  market-capitalization weighted index.
      -------------------------------------------------------------------
       SPECIALTY  ProFund VP Real Estate: seeks daily    ProFund Advisors
                  investment results, before fees and    LLC
                  expenses, that correspond to the
                  daily performance of the Dow Jones
                  U.S. Real Estate Index. The Dow Jones
                  U.S. Real Estate Index measures the
                  performance of the real estate sector
                  of the U.S. equity market. Component
                  companies include those that invest
                  directly or indirectly through
                  development, management or ownership
                  of shopping malls, apartment
                  buildings and housing developments;
                  and real estate investment trusts
                  ("REITs") that invest in apartments,
                  office and retail properties. REITs
                  are passive investment vehicles that
                  invest primarily in income-producing
                  real estate or real estate related
                  loans or interests.
      -------------------------------------------------------------------
       SPECIALTY  ProFund VP Semiconductor: seeks daily  ProFund Advisors
                  investment results, before fees and    LLC
                  expenses, that correspond to the
                  daily performance of the Dow Jones
                  U.S. Semiconductor Index. The Dow
                  Jones U.S. Semiconductor Index
                  measures the performance of the
                  semiconductor subsector of the U.S.
                  equity market. Component companies
                  are engaged in the production of
                  semiconductors and other integrated
                  chips, as well as other related
                  products such as semiconductor
                  capital equipment and mother-boards.
      -------------------------------------------------------------------
</R>


                                      33




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Investment Options continued
<R>
                                                            PORTFOLIO
                                                            ADVISOR/
      STYLE/ TYPE    INVESTMENT OBJECTIVES/POLICIES        SUB-ADVISOR
      -------------------------------------------------------------------
       SPECIALTY  ProFund VP Technology: seeks daily     ProFund Advisors
                  investment results, before fees and    LLC
                  expenses, that correspond to the
                  daily performance of the Dow Jones
                  U.S. Technology Sector Index. The Dow
                  Jones U.S. Technology Sector Index
                  measures the performance of the
                  technology industry of the U.S.
                  equity market. Component companies
                  include those involved in computers
                  and office equipment, software,
                  communications technology,
                  semiconductors, diversified
                  technology services and Internet
                  services.
      -------------------------------------------------------------------
       SPECIALTY  ProFund VP Telecommunications: seeks   ProFund Advisors
                  daily investment results, before fees  LLC
                  and expenses, that correspond to the
                  daily performance of the Dow Jones
                  U.S. Telecommunications Sector Index.
                  The Dow Jones U.S. Telecommunications
                  Sector Index measures the performance
                  of the telecommunications industry of
                  the U.S. equity market. Component
                  companies include fixed-line
                  communications and wireless
                  communications companies.
      -------------------------------------------------------------------
       SPECIALTY  ProFund VP Utilities: seeks daily      ProFund Advisors
                  investment results, before fees and    LLC
                  expenses, that correspond to the
                  daily performance of the Dow Jones
                  U.S. Utilities Sector Index. The Dow
                  Jones U.S. Utilities Sector Index
                  measures the performance of the
                  utilities industry of the U.S. equity
                  market. Component companies include
                  electric utilities, gas utilities and
                  water utilities.
      -------------------------------------------------------------------
       SPECIALTY  ProFund VP U.S. Government Plus:       ProFund Advisors
                  seeks daily investment results,        LLC
                  before fees and expenses, that
                  correspond to one and one-quarter
                  times (125%) the daily price movement
                  of the most recently issued 30-year
                  U.S. Treasury bond ("Long Bond"). In
                  accordance with its stated objective,
                  the net asset value of ProFund VP
                  U.S. Government Plus generally should
                  decrease as interest rates rise. If
                  ProFund VP U.S. Government Plus is
                  successful in meeting its objective,
                  its net asset value should gain
                  approximately one and one-quarter
                  times (125%) as much, on a percentage
                  basis, as any daily increase in the
                  price of the Long Bond on a given
                  day. Conversely, its net asset value
                  should lose approximately one and
                  one-quarter as much, on a percentage
                  basis, as any daily decrease in the
                  price of the Long Bond on a given day.
      -------------------------------------------------------------------
       SPECIALTY  ProFund VP Rising Rates Opportunity:   ProFund Advisors
                  seeks daily investment results,        LLC
                  before fees and expenses, that
                  correspond to one and one-quarter
                  times (125%) the inverse (opposite)
                  of the daily price movement of the
                  most recently issued 30-year U.S.
                  Treasury bond ("Long Bond"). In
                  accordance with its stated objective,
                  the net asset value of ProFund VP
                  rising Rates Opportunity generally
                  should decrease as interest rates
                  fall. If ProFund VP Rising Rates
                  Opportunity is successful in meeting
                  its objective, its net asset value
                  should gain approximately one and
                  one-quarter times as much, on a
                  percentage basis, as any daily
                  decrease in the Long Bond on a given
                  day. Conversely, its net asset value
                  should lose approximately one and
                  one-quarter times as much, on a
                  percentage basis, as any daily
                  increase in the Long Bond on a given
                  day.
      -------------------------------------------------------------------
</R>


                                      34




AMERICAN SKANDIA ANNUITIES PROSPECTUS

<R>
                                                              PORTFOLIO
                                                              ADVISOR/
      STYLE/ TYPE     INVESTMENT OBJECTIVES/POLICIES         SUB-ADVISOR
     ----------------------------------------------------------------------
     SPECIALTY     Access VP High Yield: seeks to         ProFund Advisors
                   provide investment results that        LLC
                   correspond generally to the total
                   return of the high yield market
                   consistent with maintaining
                   reasonable liquidity. The Fund will
                   achieve its high yield exposure
                   primarily through credit default
                   swaps (CDSs) but may invest in high
                   yield debt instruments ("junk
                   bonds"), interest rate swap
                   agreements and futures contracts, and
                   other debt and money market
                   instruments without limitation,
                   consistent with applicable
                   regulations. Under normal market
                   conditions, the Fund will invest at
                   least 80% of its net assets in CDSs
                   and other financial instruments that
                   in combination have economic
                   characteristics similar to the high
                   yield debt market and/or in high
                   yield debt securities. The Fund seeks
                   to maintain exposure to the high
                   yield bond markets regardless of
                   market conditions and without taking
                   defensive positions. ProFund Advisors
                   does not conduct fundamental analysis
                   in managing the Fund.
     ----------------------------------------------------------------------
     INTERNATIONAL The Prudential Series Fund -- SP       Prudential
     EQUITY        William Blair International Growth     Investments LLC/
                   Portfolio: seeks long-term capital     William Blair &
                   appreciation. The Portfolio invests    Company, LLC
                   primarily in stocks of large and
                   medium-sized companies located in
                   countries included in the Morgan
                   Stanley Capital International All
                   Country World Ex-U.S. Index. Under
                   normal market conditions, the
                   portfolio invests at least 80% of its
                   net assets in equity securities. The
                   Portfolio's assets normally will be
                   allocated among not fewer than six
                   different countries and will not
                   concentrate investments in any
                   particular industry. The Portfolio
                   seeks companies that historically
                   have had superior growth,
                   profitability and quality relative to
                   local markets and relative to
                   companies within the same industry
                   worldwide, and that are expected to
                   continue such performance. (see
                   information above regarding limited
                   availability of this option.)
     ----------------------------------------------------------------------
     LARGE CAP     Wells Fargo Advantage VT Equity        Wells Fargo Funds
     VALUE         Income (formerly Wells Fargo           Management, LLC
                   Advantage Equity Income Fund): seeks
                   long-term capital appreciation and
                   above-average dividend income. The
                   Portfolio invests in the common
                   stocks of large U.S. companies with
                   strong return potential and
                   above-average dividend income. The
                   Portfolio invests principally in
                   securities of companies with market
                   capitalizations of $3 billion or more.
     ----------------------------------------------------------------------
</R>
"Standard & Poor's(R), "S&P(R)," "S&P 500(R)," "Standard & Poor's 500," and
"500" are trademarks of the McGraw-Hill Companies, Inc. and have been licensed
for use by American Skandia Investment Services, Incorporated. The Portfolio is
not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard &
Poor's makes no representation regarding the advisability of investing in the
Portfolio.
"Dow Jones Industrial Average/SM/", "DJIA/SM/", "Dow Industrials/SM/", "Dow
Jones Select Dividend Index/SM/", and "The Dow 10/SM/", are service marks of
Dow Jones & Company, Inc. ("Dow Jones") and have been licensed for use for
certain purposes by First Trust Advisors L.P. ("First Trust"). The portfolios,
including, and in particular the Target Managed VIP portfolio The Dow/SM /DART
10 portfolio, and The Dow/SM /Target Dividend Portfolio are not endorsed, sold
or promoted by Dow Jones, and Dow Jones makes no representation regarding the
advisability of investing in such products.
"Standard & Poor's," "S&P," "S&P 500," "Standard & Poor's 500," and "500" are
trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by
First Trust on behalf of the S&P Target 24 Portfolio and the Target Managed VIP
Portfolio. The Portfolios are not sponsored, endorsed, managed, sold or
promoted by Standard & Poor's and Standard & Poor's makes no representation
regarding the advisability of investing in the Portfolio.
"The Nasdaq 100(R)", "Nasdaq-100 Index(R)", "Nasdaq Stock Market(R)", and
"Nasdaq(R)" are trade or service marks of The Nasdaq Stock Market, Inc. (which
with its affiliates are the "Corporations") and have been licensed for use by
First Trust. The Nasdaq Target 15 Portfolio and Target Managed VIP Portfolio
have not been passed on by the Corporations as to its legality or suitability.
The Nasdaq Target 15 Portfolio and Target Managed VIP Portfolio are not issued,
endorsed, sponsored, managed, sold or promoted by the Corporations. The
Corporations make no warranties and bear no liability with respect to the
Nasdaq Target 15 Portfolio or the Target Managed VIP Portfolio.
"Value Line(R)," "The Value Line Investment Survey," and "Value Line
Timeliness(TM) Ranking System" are registered trademarks of Value Line
Securities, Inc. or Value Line Publishing, Inc. The Target Managed VIP(R)
Portfolio is not sponsored, recommended, sold or promoted by Value Line
Publishing, Inc., Value Line, Inc. or Value Line Securities, Inc. ("Value
Line"). Value Line makes no representation regarding the advisability of
investing in the Portfolio.
The First Trust(R) 10 Uncommon Values portfolio is not sponsored or created by
Lehman Brothers, Inc. ("Lehman Brothers"). Lehman Brothers' only relationship
to First Trust is the licensing of certain trademarks and trade names of Lehman
Brothers and of the "10 Uncommon Values" which is determined, composed and
calculated by Lehman Brothers without regard to First Trust or the First
Trust(R) 10 Uncommon Values portfolio.
Dow Jones has no relationship to the ProFunds VP, other than the licensing of
the Dow Jones sector indices and its service marks for use in connection with
the ProFunds VP. The ProFunds VP are not sponsored, endorsed, sold, or promoted
by Standard & Poor's or NASDAQ, and neither Standard & Poor's nor NASDAQ makes
any representations regarding the advisability of investing in the ProFunds VP.


                                      35




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Fees and Charges


<R>
The charges under the contracts are designed to cover, in the aggregate, our
direct and indirect costs of selling, administering and providing benefits
under the contracts. They are also designed, in the aggregate, to compensate us
for the risks of loss we assume pursuant to the contracts. If, as we expect,
the charges that we collect from the contracts exceed our total costs in
connection with the contracts, we will earn a profit. Otherwise we will incur a
loss. For example, American Skandia may make a profit on the Insurance Charge
if, over time, the actual costs of providing the guaranteed insurance
obligations under an Annuity are less than the amount we deduct for the
Insurance Charge. To the extent we make a profit on the Insurance Charge, such
profit may be used for any other corporate purpose, including payment of other
expenses that American Skandia incurs in promoting, distributing, issuing and
administering an Annuity and, in the case of XT6, ASAP III and APEX II to
offset a portion of the costs associated with offering Credits which are funded
through American Skandia's general account.
   The rates of certain of our charges have been set with reference to
estimates of the amount of specific types of expenses or risks that we will
incur. In most cases, this prospectus identifies such expenses or risks in the
name of the charge; however, the fact that any charge bears the name of, or is
designed primarily to defray a particular expense or risk does not mean that
the amount we collect from that charge will never be more than the amount of
such expense or risk, nor does it mean that we may not also be compensated for
such expense or risk out of any other charges we are permitted to deduct by the
terms of the contract. A portion of the proceeds that American Skandia receives
from charges that apply to the Sub-accounts may include amounts based on market
appreciation of the Sub-account values including, for ASAP III, XT6 and APEX
II, appreciation on amounts that represent any Credits.
</R>

WHAT ARE THE CONTRACT FEES AND CHARGES?

Contingent Deferred Sales Charge: We do not deduct a sales charge from Purchase
Payments you make to your Annuity. However, we may deduct a CDSC if you
surrender your Annuity or when you make a partial withdrawal. The CDSC
reimburses us for expenses related to sales and distribution of the Annuity,
including commissions, marketing materials and other promotional expenses. The
CDSC is calculated as a percentage of your Purchase Payment being surrendered
or withdrawn during the applicable Annuity Year. For purposes of calculating
the CDSC, we consider the year following the Issue Date of your Annuity as Year
1. The amount of the CDSC decreases over time, measured from the Issue Date of
the Annuity. The CDSC percentages for ASAP III, APEX II and XT6 are shown under
"Summary of Contract Fees and Charges". No CDSC is deducted from ASL II
Annuities.
<R>
   With respect to a partial withdrawal, we calculate the CDSC by assuming that
any available free withdrawal amount is taken out first (see How Much Can I
Withdraw as a Free Withdrawal?). If the free withdrawal amount is not
sufficient, we then assume that withdrawals are taken from Purchase Payments
that have not been previously withdrawn, on a first-in, first-out basis, and
subsequently from any other Account Value in the Annuity.
   For purposes of calculating any applicable CDSC on a surrender, the Purchase
Payments being withdrawn may be greater than your remaining Account Value or
the amount of your withdrawal request. This is most likely to occur if you have
made prior partial withdrawals or if your Account Value has declined in value
due to negative market performance. In that scenario, we would determine the
CDSC amount as the applicable percentage of the Purchase Payments being
withdrawn, rather than as a percentage of the remaining Account Value or
withdrawal request. Thus, the CDSC would be greater than if it were calculated
as a percentage of remaining Account Value or withdrawal amount.
</R>
   We may waive any applicable CDSC under certain medically-related
circumstances or when taking a Minimum Distribution from an Annuity purchased
as a "qualified" investment. Free Withdrawals, Medically-Related Surrenders and
Minimum Distributions are each explained more fully in the section entitled
"Access to Your Account Value".

   Transfer Fee: Currently, you may make twenty (20) free transfers between
investment options each Annuity Year. We will charge $10.00 for each transfer
after the twentieth in each Annuity Year. We do not consider transfers made as
part of a Dollar Cost Averaging, Automatic Rebalancing or asset allocation
program when we count the twenty free transfers. All transfers made on the same
day will be treated as one (1) transfer. Renewals or transfers of Account Value
from a Fixed Allocation at the end of its Guarantee Period are not subject to
the Transfer Fee and are not counted toward the twenty free transfers. We may
reduce the number of free transfers allowable each Annuity Year (subject to a
minimum of eight) without charging a Transfer Fee unless you make use of
electronic means to transmit your transfer requests. We may eliminate the
Transfer Fee for transfer requests transmitted electronically or through other
means that reduce our processing costs. If enrolled in any program that does
not permit


                                      37




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Fees and Charges continued

transfer requests to be transmitted electronically, the Transfer Fee will not
be waived.

   Annual Maintenance Fee: During the accumulation period we deduct an Annual
Maintenance Fee. The Annual Maintenance Fee is $35.00 or 2% of your Account
Value invested in the Sub-accounts, whichever is less. This fee will be
deducted annually on the anniversary of the Issue Date of your Annuity or, if
you surrender your Annuity during the Annuity Year, the fee is deducted at the
time of surrender. With respect to ASAP III, APEX II and ASL II, currently, the
Annual Maintenance Fee is only deducted if your Account Value is less than
$100,000 on the anniversary of the Issue Date or at the time of surrender. With
respect to XT6, we deduct the Annual Maintenance Fee regardless of Account
Value. We may increase the Annual Maintenance Fee. However, any increase will
only apply to Annuities issued after the date of the increase.

   Tax Charge: Several states and some municipalities charge premium taxes or
similar taxes on annuities that we are required to pay. The amount of tax will
vary from jurisdiction to jurisdiction and is subject to change. The tax charge
currently ranges up to 3 1/2% of your premium and is designed to approximate
the taxes that we are required to pay. We generally will deduct the charge at
the time the tax is imposed, but may also decide to deduct the charge from each
Purchase Payment at the time of a withdrawal or surrender of your Annuity or at
the time you elect to begin receiving annuity payments. We may assess a charge
against the Sub-accounts and the Fixed Allocations equal to any taxes which may
be imposed upon the separate accounts.
   We will pay company income taxes on the taxable corporate earnings created
by this separate account product. While we may consider company income taxes
when pricing our products, we do not currently include such income taxes in the
tax charges you pay under the contract. We will periodically review the issue
of charging for these taxes and may impose a charge in the future.
   In calculating our corporate income tax liability, we derive certain
corporate income tax benefits associated with the investment of company assets,
including separate account assets, which are treated as company assets under
applicable income tax law. These benefits reduce our overall corporate income
tax liability. Under current law, such benefits may include foreign tax credits
and corporate dividends received deductions. We do not pass these tax benefits
through to holders of the separate account annuity contracts because (i) the
contract owners are not the owners of the assets generating these benefits
under applicable income tax law and (ii) we do not currently include company
income taxes in the tax charges you pay under the contract.

   Insurance Charge: We deduct an Insurance Charge daily. The charge is
assessed against the daily assets allocated to the Sub-accounts and is equal to
the amount indicated under "Summary of Contract Fees and Charges". The
Insurance Charge is the combination of the Mortality & Expense Risk Charge and
the Administration Charge. The Insurance Charge is intended to compensate
American Skandia for providing the insurance benefits under each Annuity,
including each Annuity's basic Death Benefit that provides guaranteed benefits
to your beneficiaries even if the market declines and the risk that persons we
guarantee annuity payments to will live longer than our assumptions. The charge
also covers administrative costs associated with providing the Annuity
benefits, including preparation of the contract, confirmation statements,
annual account statements and annual reports, legal and accounting fees as well
as various related expenses. Finally, the charge covers the risk that our
assumptions about the mortality risks and expenses under each Annuity are
incorrect and that we have agreed not to increase these charges over time
despite our actual costs. We may increase the portion of the total Insurance
Charge that is deducted for administrative costs; however, any increase will
only apply to Annuities issued after the date of the increase.
   The Insurance Charge is not deducted against assets allocated to a Fixed
Allocation. However, the amount we credit to Fixed Allocations may also reflect
similar assumptions about the insurance guarantees provided under each Annuity.

   Distribution Charge: For ASAP III and XT6, we deduct a Distribution Charge
daily. The charge is assessed against the average assets allocated to the
Sub-accounts and is equal to the amount indicated under "Summary of Contract
Fees and Charges" on an annual basis. The Distribution Charge is intended to
compensate us for a portion of our acquisition expenses under the Annuity,
including promotion and distribution of the Annuity and, with respect to XT6,
the costs associated with offering Credits which are funded through American
Skandia's general account. The Distribution Charge is deducted against your
Annuity's Account Value and any increases or decreases in your Account Value
based on market fluctuations of the Sub-accounts will affect the charge.

   Optional Benefits for which we assess a charge: If you elect to purchase
certain optional benefits, we will deduct an additional charge on a daily basis
solely from your Account Value


                                      38




AMERICAN SKANDIA ANNUITIES PROSPECTUS

allocated to the Sub-accounts. The additional charge is included in the daily
calculation of the Unit Price for each Sub-account. We may assess charges for
other optional benefits on a different basis. Please refer to the sections
entitled "Living Benefit Programs" and "Death Benefit" for a description of the
charge for each Optional Benefit.

   Fees and expenses incurred by the Portfolios: Each Portfolio incurs total
annual operating expenses comprised of an investment management fee, other
expenses and any distribution and service (12b-1) fees that may apply. These
fees and expenses are reflected daily by each Portfolio before it provides
American Skandia with the net asset value as of the close of business each day.
More detailed information about fees and expenses can be found in the
prospectuses for the Portfolios.

WHAT CHARGES APPLY TO THE FIXED ALLOCATIONS?

No specific fees or expenses are deducted when determining the rate we credit
to a Fixed Allocation. However, for some of the same reasons that we deduct the
Insurance Charge against Account Value allocated to the Sub-accounts, we also
take into consideration mortality, expense, administration, profit and other
factors in determining the interest rates we credit to Fixed Allocations. Any
CDSC or Tax Charge applies to amounts that are taken from the Sub-accounts or
the Fixed Allocations. A Market Value Adjustment may also apply to transfers,
certain withdrawals, surrender or annuitization from a Fixed Allocation.

WHAT CHARGES APPLY IF I CHOOSE AN ANNUITY PAYMENT OPTION?

If you select a fixed payment option, the amount of each fixed payment will
depend on the Account Value of your Annuity when you elected to annuitize.
There is no specific charge deducted from these payments; however, the amount
of each annuity payment reflects assumptions about our insurance expenses. If
you select a variable payment option that we may offer, then the amount of your
benefits will reflect changes in the value of your Annuity and will be subject
to charges that apply under the variable immediate annuity option. Also, a tax
charge may apply (see "Tax Charge" above). The variable annuity payment options
are described in detail in a separate prospectus, which is available upon
request and which will be provided to you if and when you elect one of the
variable annuity payment options. The separate prospectus sets forth the fees
and charges under the variable payment option, which may be higher than those
set forth in this prospectus.

EXCEPTIONS/REDUCTIONS TO FEES AND CHARGES

We may reduce or eliminate certain fees and charges or alter the manner in
which the particular fee or charge is deducted. For example, we may reduce the
amount of any CDSC or the length of time it applies, reduce or eliminate the
amount of the Annual Maintenance Fee or reduce the portion of the total
Insurance Charge that is deducted as an Administration Charge. Generally, these
types of changes will be based on a reduction to our sales, maintenance or
administrative expenses due to the nature of the individual or group purchasing
the Annuity. Some of the factors we might consider in making such a decision
are: (a) the size and type of group; (b) the number of Annuities purchased by
an Owner; (c) the amount of Purchase Payments or likelihood of additional
Purchase Payments; (d) whether an annuity is reinstated pursuant to our rules;
and/or (e) other transactions where sales, maintenance or administrative
expenses are likely to be reduced. We will not discriminate unfairly between
Annuity purchasers if and when we reduce any fees and charges.


                                      39




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Purchasing Your Annuity

WHAT ARE OUR REQUIREMENTS FOR PURCHASING ONE OF THE ANNUITIES?

<R>
Initial Purchase Payment: Unless we agree otherwise and subject to our rules,
you must make a minimum initial Purchase Payment as follows: $1,000 for ASAP
III, $10,000 for XT6 and APEX II and $15,000 for ASL II. However, if you decide
to make payments under a systematic investment or an electronic funds transfer
program, we will accept a lower initial Purchase Payment provided that, within
the first Annuity Year, your subsequent Purchase Payments plus your initial
Purchase Payment total the minimum initial Purchase Payment amount required for
the Annuity purchased.
</R>
   Where allowed by law, we must approve any initial and additional Purchase
Payments of $1,000,000 or more. We may apply certain limitations and/or
restrictions on an Annuity as a condition of our acceptance, including limiting
the liquidity features or the Death Benefit protection provided under an
Annuity, limiting the right to make additional Purchase Payments, changing the
number of transfers allowable under an Annuity or restricting the Sub-accounts
or Fixed Allocations that are available. Other limitations and/or restrictions
may apply.
   Except as noted below, Purchase Payments must be submitted by check drawn on
a U.S. bank, in U.S. dollars, and made payable to American Skandia. Purchase
Payments may also be submitted via 1035 exchange or direct transfer of funds.
Under certain circumstances, Purchase Payments may be transmitted to American
Skandia via wiring funds through your Financial Professional's broker-dealer
firm. Additional Purchase Payments may also be applied to your Annuity under an
electronic funds transfer arrangement where you authorize us to deduct money
directly from your bank account. We may reject any payment if it is received in
an unacceptable form. Our acceptance of a check is subject to our ability to
collect funds.
<R>
   Age Restrictions: Unless we agree otherwise and subject to our rules, the
Owner (or Annuitant if entity owned) must not be older than a maximum issue age
as of the Issue Date of the Annuity as follows: age 80 for ASAP III, age 75 for
XT6 and age 85 for APEX II. For ASL II, there is no maximum issue age, however
the basic death benefit provides greater protection for Owners under age 85. If
an Annuity is owned jointly, the oldest of the Owners must not be older than
the maximum issue age on the Issue Date. You should consider your need to
access your Account Value and whether the Annuity's liquidity features will
satisfy that need. If you take a distribution prior to age 59 1/2, you may be
subject to a 10% penalty in addition to ordinary income taxes on any gain. The
availability and level of protection of certain optional benefits may vary
based on the age of the Owner on the Issue Date of the Annuity or the date of
the Owner's death.
</R>

   Owner, Annuitant and Beneficiary Designations: We will ask you to name the
Owner(s), Annuitant and one or more Beneficiaries for your Annuity.
.   Owner: The Owner(s) holds all rights under the Annuity. You may name up to
    two Owners in which case all ownership rights are held jointly. Generally,
    joint owners are required to act jointly; however, if each owner provides
    us with an instruction that we find acceptable, we will permit each owner
    to act separately. All information and documents that we are required to
    send you will be sent to the first named owner. This Annuity does not
    provide a right of survivorship. Refer to the Glossary of Terms for a
    complete description of the term "Owner."
.   Annuitant: The Annuitant is the person we agree to make annuity payments to
    and upon whose life we continue to make such payments. You must name an
    Annuitant who is a natural person. We do not accept a designation of joint
    Annuitants during the accumulation period. Where allowed by law, you may
    name one or more Contingent Annuitants. A Contingent Annuitant will become
    the Annuitant if the Annuitant dies before the Annuity Date. Please refer
    to the discussion of "Considerations for Contingent Annuitants" in the Tax
    Considerations section of the Prospectus.
.   Beneficiary: The Beneficiary is the person(s) or entity you name to receive
    the Death Benefit. Your beneficiary designation should be the exact name of
    your beneficiary, not only a reference to the beneficiary's relationship to
    you. If you use a designation of "surviving spouse," we will pay the Death
    Benefit to the individual that is your spouse at the time of your death (as
    defined under the federal tax laws and regulations). If no beneficiary is
    named the Death Benefit will be paid to you or your estate.
   Your right to make certain designations may be limited if your Annuity is to
be used as an IRA or other "qualified" investment that is given beneficial tax
treatment under the Code. You should seek competent tax advice on the income,
estate and gift tax implications of your designations.


                                      40




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Managing Your Annuity


MAY I CHANGE THE OWNER, ANNUITANT AND BENEFICIARY DESIGNATIONS?

You may change the Owner, Annuitant and Beneficiary designations by sending us
a request in writing. Upon an ownership change, any automated investment or
withdrawal programs will be canceled. The new owner must submit the applicable
program enrollment if they wish to participate in such a program. Where allowed
by law, such changes will be subject to our acceptance. Some of the changes we
will not accept include, but are not limited to:
.   a new Owner subsequent to the death of the Owner or the first of any joint
    Owners to die, except where a spouse-Beneficiary has become the Owner as a
    result of an Owner's death;
.   a new Annuitant subsequent to the Annuity Date;
.   for "non-qualified" investments, a new Annuitant prior to the Annuity Date
    if the Annuity is owned by an entity; and
.   a change in Beneficiary if the Owner had previously made the designation
    irrevocable.

There may be restrictions on designation changes when you have elected certain
optional benefits.

SPOUSAL OWNERS/SPOUSAL BENEFICIARIES
<R>
If an Annuity is co-owned by spouses, we will assume that the sole primary
Beneficiary is the surviving spouse that was named as the co-owner unless you
elect an alternative Beneficiary designation. Unless you elect an alternative
Beneficiary designation, upon the death of either spousal Owner, the surviving
spouse may elect to assume ownership of the Annuity instead of taking the Death
Benefit payment. The Death Benefit that would have been payable will be the new
Account Value of the Annuity as of the date of due proof of death and any
required proof of a spousal relationship. As of the date the assumption is
effective, the surviving spouse will have all the rights and benefits that
would be available under the Annuity to a new purchaser of the same attained
age. For the Spousal Lifetime Five/SM/ Income Benefit, the eligible surviving
spouse will also be able to assume the benefit with the Annuity. See the
description of this benefit in the "Living Benefit Programs" section of this
Prospectus. For purposes of determining any future Death Benefit for the
beneficiary of the surviving spouse, the new Account Value will be considered
as the initial Purchase Payment. No CDSC will apply to the new Account Value.
However, any additional Purchase Payments applied after the date the assumption
is effective will be subject to all provisions of the Annuity, including the
CDSC when applicable.
</R>

CONTINGENT ANNUITANT
If an Annuity is owned by an entity and the entity has named a Contingent
Annuitant, no Death Benefit is payable upon the death of the Annuitant.
However, the Account Value of the Annuity as of the date of due proof of death
of the Annuitant will reflect the amount that would have been payable had a
Death Benefit been paid. The Annuity is eligible to have a Contingent Annuitant
designation if the entity which owns the annuity is a plan described in
Internal Revenue Code Section 72(s)(5)(A)(i) or an entity described in Code
section 72(u)(1), or any successor Code sections.

MAY I RETURN MY ANNUITY IF I CHANGE MY MIND?

<R>
If after purchasing your Annuity you change your mind and decide that you do
not want it, you may return it to us within a certain period of time known as a
right to cancel period. This is often referred to as a "free-look." Depending
on the state in which you purchased your Annuity and, in some states, if you
purchased the Annuity as a replacement for a prior contract, the right to
cancel period may be ten (10) days, or longer, measured from the time that you
received your Annuity. If you return your Annuity during the applicable period,
we will refund your current Account Value plus any tax charge deducted, less
any applicable federal and state income tax withholding and depending on your
state's requirements, any applicable insurance charges deducted. The amount
returned to you may be higher or lower than the Purchase Payment(s) applied
during the right to cancel period. Where required by law, we will return your
Purchase Payment(s), or the greater of your current Account Value and the
amount of your Purchase Payment(s) applied during the right to cancel period
less any applicable federal and state income tax withholding. With respect to
XT6, if you return your Annuity, we will not return any XTra Credits we applied
to your Annuity based on your Purchase Payments.
</R>

MAY I MAKE ADDITIONAL PURCHASE PAYMENTS?

<R>
Unless we agree otherwise and subject to our rules, the minimum amount that we
accept as an additional Purchase Payment is $100 unless you participate in
American Skandia's Systematic Investment Plan or a periodic Purchase Payment
program. Purchase Payments made while you participate in an asset allocation
program will be allocated in accordance with such program. Additional Purchase
Payments may be paid at any time before the Annuity Date.
</R>


                                      41




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Managing Your Account Value


HOW AND WHEN ARE PURCHASE PAYMENTS INVESTED?
(See "Valuing Your Investment" for a description of our procedure for pricing
initial and subsequent Purchase Payments.)

   Initial Purchase Payment: Once we accept your application, we invest your
Purchase Payment in your Annuity according to your instructions for allocating
your Account Value. The Purchase Payment is your initial Purchase Payment minus
any tax charges that may apply. You can allocate Account Value to one or more
Sub-accounts or Fixed Allocations. Investment restrictions will apply if you
elect certain optional benefits.

   Subsequent Purchase Payments: Unless you participate in an asset allocation
program, or unless you have provided us with other specific allocation
instructions for one, more than one, or all subsequent Purchase Payments, we
will allocate any additional Purchase Payments you make according to your
initial Purchase Payment allocation instructions. If you so instruct us, we
will allocate subsequent Purchase Payments according to any new allocation
instructions. Unless you tell us otherwise, Purchase Payments made while you
participate in an asset allocation program will be allocated in accordance with
such program.

HOW DO I RECEIVE A LOYALTY CREDIT UNDER THE ASAP III AND APEX II ANNUITIES?
We apply a Loyalty Credit to your Annuity's Account Value at the end of your
fifth Annuity Year ("fifth Annuity Anniversary"). With respect to ASAP III, for
annuities issued on or after February 13, 2006 (subject to state availability),
the Loyalty Credit is equal to 0.50% of total Purchase Payments made during the
first four Annuity Years less the cumulative amount of withdrawals made
(including the deduction of any CDSC amounts) through the fifth Annuity
Anniversary. With respect to APEX II, for annuities issued on or after June 20,
2005 (subject to state availability), the Loyalty Credit is equal to 2.25% of
total Purchase Payments made during the first four Annuity Years less the
cumulative amount of withdrawals made (including the deduction of any CDSC
amounts) through the fifth Annuity Anniversary. For APEX II Annuities issued on
or after February 13, 2006 (subject to state availability), the Loyalty Credit
is equal to 2.75% of total Purchase Payments made during the first four Annuity
Years less the cumulative amount of withdrawals made (including the deduction
of any CDSC amounts) through the fifth Annuity Anniversary.
<R>
   If the total Purchase Payments made during the first four Annuity Years is
less than the cumulative amount of withdrawals made on or before the fifth
Annuity Anniversary, no Loyalty Credit will be applied to your Annuity. Also,
no Loyalty Credit will be applied to your Annuity if your Account Value is zero
on the fifth Annuity Anniversary. This would include any situation where the
Annuity is still in force due to the fact that payments are being made under an
optional benefit such as Lifetime Five, Spousal Lifetime Five or the Guaranteed
Minimum Withdrawal Benefit. In addition, no Loyalty Credit will be applied to
your Annuity if before the fifth Annuity Anniversary: (i) you have surrendered
your Annuity; (ii) you have annuitized your Annuity; (iii) your Beneficiary has
elected our Beneficiary Continuation Option; or (iv) we have received due proof
of your death (and there has been no spousal continuation election made). If
your spouse continues the contract under our spousal continuation option, we
will apply the Loyalty Credit to your Annuity only on the fifth Annuity
Anniversary measured from the date that we originally issued you the Annuity.
Since the Loyalty Credit is applied to the Account Value only, any guarantees
that are not based on Account Value will not reflect the Loyalty Credit.
Similarly, guarantees that are made against a loss in Account Value will not be
triggered in certain very limited circumstances where they otherwise would have
been, had no Loyalty Credit been applied to the Account Value.
</R>

HOW ARE LOYALTY CREDITS APPLIED TO MY ACCOUNT VALUE UNDER THE ASAP III AND APEX
II ANNUITIES?
Any Loyalty Credit that is allocated to your Account Value on the fifth Annuity
Anniversary will be allocated to the Fixed Allocations and Sub-accounts in the
same percentages as Purchase Payments are then being allocated to your Annuity.

EXAMPLE OF APPLYING THE LOYALTY CREDIT WITH RESPECT TO ASAP III
Assume you make an initial Purchase Payment of $10,000 and your Annuity is
issued on or after February 13, 2006. During Annuity Year four (i.e., prior to
the fourth Annuity Anniversary) you make an additional $10,000 Purchase
Payment. During the early part of Annuity Year five (i.e., prior to the fifth
Annuity Anniversary) you make a $10,000 Purchase Payment and later in the year
make a withdrawal of $5,000. The Loyalty Credit that we will apply to your
Annuity on the fifth Annuity Anniversary is, subject to state availability,
equal to 0.50% of $15,000 (this represents the $20,000 of Purchase Payments
made during the first four Annuity Years minus the $5,000 withdrawal made in
the fifth Annuity Year. The computation disregards the additional $10,000
Purchase Payment made in the fifth Annuity Year.) Therefore, the Loyalty Credit
amount would be equal to $75.00.


                                      43




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Managing Your Account Value continued


EXAMPLE OF APPLYING THE LOYALTY CREDIT WITH RESPECT TO APEX II
Assume you make an initial Purchase Payment of $10,000 and your Annuity is
issued on or after February 13, 2006. During Annuity Year four (i.e., prior to
the fourth Annuity Anniversary) you make an additional $10,000 Purchase
Payment. During the early part of Annuity Year five (i.e., prior to the fifth
Annuity Anniversary) you make a $10,000 Purchase Payment and later in the year
make a withdrawal of $5,000. The Loyalty Credit that we will apply to your
Annuity on the fifth Annuity Anniversary is, subject to state availability,
equal to 2.75% of $15,000 (this represents the $20,000 of Purchase Payments
made during the first four Annuity Years minus the $5,000 withdrawal made in
the fifth Annuity Year. The computation disregards the additional $10,000
Purchase Payment made in the fifth Annuity Year.) Therefore, the Loyalty Credit
amount would be equal to $412.50.

HOW DO I RECEIVE CREDITS UNDER THE XT6 ANNUITY?
We apply a "Credit" to your Annuity's Account Value each time you make a
Purchase Payment during the first six (6) Annuity Years. The amount of the
Credit is payable from our general account. The amount of the Credit depends on
the Annuity Year in which the Purchase Payment(s) is made, according to the
table below:
   For annuities issued prior to February 13, 2006:

                              ANNUITY YEAR CREDIT
                              -------------------
                                   1       6.00%
                                   2       5.00%
                                   3       4.00%
                                   4       3.00%
                                   5       2.00%
                                   6       1.00%
                                   7+      0.00%
                              -------------------

   For annuities issued on or after February 13, 2006 (subject to state
availability):

                              ANNUITY YEAR CREDIT
                              -------------------
                                   1       6.50%
                                   2       5.00%
                                   3       4.00%
                                   4       3.00%
                                   5       2.00%
                                   6       1.00%
                                   7+      0.00%
                              -------------------

CREDITS APPLIED TO PURCHASE PAYMENTS FOR DESIGNATED CLASS OF ANNUITY OWNER
Prior to May 1, 2004, where allowed by state law, Annuities could be purchased
by a member of the class defined below, with a different table of Credits. The
Credit applied to all Purchase Payments on such Annuities is as follows based
on the Annuity Year in which the Purchase Payment was made: Year 1 -- 9.0%;
Year 2 -- 9.0%; Year 3 -- 8.5%; Year 4 -- 8.0%; Year 5 -- 7.0%; Year 6 -- 6.0%;
Year 7 -- 5.0%; Year 8 -- 4.0%; Year 9 -- 3.0%; Year 10 -- 2%; Year 11+ -- 0.0%.
   The designated class of Annuity Owners included: (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, custodian-ship, 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, a Prudential
Financial Company; (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) the child(ren) or other legal dependent
under the age of 21 of any such person noted in (b) through (h); and (j) the
siblings of any such persons noted in (b) through (h) above.
   All other terms and conditions of the Annuity apply to Owners in the
designated class.

HOW ARE CREDITS APPLIED TO ACCOUNT VALUE UNDER THE XT6 ANNUITY?
Each Credit is allocated to your Account Value at the time the Purchase Payment
is applied to your Account Value. The amount of the Credit is allocated to the
investment options in the same ratio as the applicable Purchase Payment is
applied.

EXAMPLES OF APPLYING CREDITS

Initial Purchase Payment
Assume you make an initial Purchase Payment of $10,000 and your Annuity is
issued on or after February 13, 2006. We would apply a 6.5% Credit to your
Purchase Payment and allocate the amount of the Credit ($650 = $10,000 X .065)
to your Account Value in the proportion that your Purchase Payment is allocated.


                                      44




AMERICAN SKANDIA ANNUITIES PROSPECTUS


Additional Purchase Payment in Annuity Year 2
Assume that you make an additional Purchase Payment of $5,000. We would apply a
5.0% Credit to your Purchase Payment and allocate the amount of the Credit
($250 = $5,000 X .05) to your Account Value.

Additional Purchase Payment in Annuity Year 6
Assume that you make an additional Purchase Payment of $15,000. We would apply
a 1.0% Credit to your Purchase Payment and allocate the amount of the Credit
($150 = $15,000 X .01) to your Account Value.

<R>
 The amount of any XTra Credits applied to your XT6 Annuity Account Value can
 be taken back by American Skandia under certain circumstances:
.  any XTra Credits applied to your Account Value on Purchase Payments made
   within the 12 months before the Owner's (or Annuitant's if entity owned)
   date of death will be taken back;
.  the amount available under the medically-related surrender portion of the
   Annuity will not include the amount of any XTra Credits payable on Purchase
   Payments made within 12 months prior to the date of a request under the
   medically-related surrender provision; and
.  if you elect to "free-look" your Annuity, the amount returned to you will
   not include the amount of any XTra Credits.
   If you qualify for the 6.5% Xtra Credit in the first year (for annuities
 issued on or after February 13, 2006, subject to state availability), only 6%
 of that amount will be taken back in connection with the first two bullets
 described above. However, we will take back the entire 6.5% if you "free-look"
 your Annuity.
   The Account Value may be substantially reduced if American Skandia takes
 back the XTra Credit amount under these circumstances. The amount we take back
 will equal the XTra Credit, without adjustment up or down for investment
 performance. Therefore, any gain on the XTra Credit amount will not be taken
 back. But if there was a loss on the XTra Credit, the amount we take back will
 still equal amount of the XTra Credit. We do not deduct a CDSC in any
 situation where we take back the XTra Credit amount. During the first 10
 Annuity Years, the total asset-based charges on this Annuity (including the
 Insurance Charge and the Distribution Charge) are higher than many of our
 other annuities, including other annuities we offer that apply credits to
 purchase payments.
</R>

GENERAL INFORMATION ABOUT CREDITS
.   We do not consider Credits to be "investment in the contract" for income
    tax purposes.
.   You may not withdraw the amount of any Credits under the Free Withdrawal
    provision. The Free Withdrawal provision only applies to withdrawals of
    Purchase Payments.

ARE THERE RESTRICTIONS OR CHARGES ON TRANSFERS BETWEEN INVESTMENT OPTIONS?
During the accumulation period you may transfer Account Value between
investment options subject to the restrictions outlined below. Transfers are
not subject to taxation on any gain. We may require a minimum of $500 in each
Sub-account you allocate Account Value to at the time of any allocation or
transfer. If you request a transfer and, as a result of the transfer, there
would be less than $500 in the Sub-account, we may transfer the remaining
Account Value in the Sub-account pro- rata to the other investment options to
which you transferred.
   We may impose specific restrictions on financial transactions (including
transfer requests) for certain Portfolios based on the Portfolio's investment
and/or transfer restrictions. We may do so to conform to any present or future
restriction that is imposed by any portfolio available under an Annuity.
Currently, any purchase, redemption or transfer involving the ProFunds VP
Sub-accounts must be received by us no later than one hour prior to any
announced closing of the applicable securities exchange (generally, 3:00 p.m.
Eastern time) to be processed on the current Valuation Day. The "cut-off" time
for such financial transactions involving a ProFunds VP Sub-account will be
extended to /1//\\2 \\hour prior to any announced closing (generally, 3:30 p.m.
Eastern time) for transactions submitted electronically, including through
American Skandia's Internet website (www.americanskandia.prudential.com).
   Currently, we charge $10.00 for each transfer after the twentieth
(20/th/) transfer in each Annuity Year. Transfers made as part of a Dollar Cost
Averaging, Automatic Rebalancing or asset allocation program do not count
toward the twenty free transfer limit. Renewals or transfers of Account Value
from a Fixed Allocation at the end of its Guarantee Period are not subject to
the transfer charge. We may reduce the number of free transfers allowable each
Annuity Year (subject to a minimum of eight) without charging a Transfer Fee.
We may also increase the Transfer Fee that we charge to $20.00 for each
transfer after the number of free transfers has been used up. We may eliminate
the Transfer Fee for transfer requests transmitted electronically or through
other means that reduce our processing costs. If enrolled in any program that
does not permit transfer requests to be transmitted electronically, the
Transfer Fee will not be waived.


                                      45




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Managing Your Account Value continued

   Once you have made 20 transfers among the Sub-accounts during an Annuity
Year, we will accept any additional transfer request during that year only if
the request is submitted to us in writing with an original signature and
otherwise is in good order. For purposes of this 20 transfer limit, we (i) do
not view a facsimile transmission as a "writing", (ii) will treat multiple
transfer requests submitted on the same business day as a single transfer, and
(iii) do not count any transfer that solely involves Sub-accounts corresponding
to any ProFund Portfolio and/or the AST Money Market Portfolio, or any transfer
that involves one of our systematic programs, such as asset allocation and
automated withdrawals.
   Frequent transfers among Sub-accounts in response to short-term fluctuations
in markets, sometimes called "market timing," can make it very difficult for a
Portfolio manager to manage a Portfolio's investments. Frequent transfers may
cause the Portfolio to hold more cash than otherwise necessary, disrupt
management strategies, increase transaction costs, or affect performance. Each
Annuity offers Sub-accounts designed for Owners who wish to engage in frequent
transfers (i.e., one or more of the Sub-accounts corresponding to the ProFund
Portfolios and the AST Money Market Portfolio), and we encourage Owners seeking
frequent transfers to utilize those Sub-accounts.
   In light of the risks posed to Owners and other investors by frequent
transfers, we reserve the right to limit the number of transfers in any Annuity
Year for all existing or new Owners and to take the other actions discussed
below. We also reserve the right to limit the number of transfers in any
Annuity Year or to refuse any transfer request for an Owner or certain Owners
if: (a) we believe that excessive transfer activity (as we define it) or a
specific transfer request or group of transfer requests may have a detrimental
effect on Unit Values or the share prices of the Portfolios; or (b) we are
informed by a Portfolio (e.g., by the Portfolio's portfolio manager) that the
purchase or redemption of shares in the Portfolio must be restricted because
the Portfolio believes the transfer activity to which such purchase and
redemption relates would have a detrimental effect on the share prices of the
affected Portfolio. Without limiting the above, the most likely scenario where
either of the above could occur would be if the aggregate amount of a trade or
trades represented a relatively large proportion of the total assets of a
particular Portfolio. In furtherance of our general authority to restrict
transfers as described above, and without limiting other actions we may take in
the future, we have adopted the following specific restrictions:

.   With respect to each Sub-account (other than the AST Money Market
    Sub-account, or a Sub-account corresponding to a ProFund Portfolio), we
    track amounts exceeding a certain dollar threshold that were transferred
    into the Sub-account. If you transfer such amount into a particular
    Sub-account, and within 30 calendar days thereafter transfer (the "Transfer
    Out") all or a portion of that amount into another Sub-account, then upon
    the Transfer Out, the former Sub-account becomes restricted (the
    "Restricted Sub-account"). Specifically, we will not permit subsequent
    transfers into the Restricted Sub-account for 90 calendar days after the
    Transfer Out if the Restricted Sub-account invests in a non-international
    Portfolio, or 180 calendar days after the Transfer Out if the Restricted
    Sub-account invests in an international Portfolio. For purposes of this
    rule, we (i) do not count transfers made in connection with one of our
    systematic programs, such as asset allocation and auto-mated withdrawals;
    (ii) do not count any transfer that solely involves Sub-accounts
    corresponding to any ProFund Portfolio and/or the AST Money Market
    Portfolio; and (iii) do not categorize as a transfer the first transfer
    that you make after the Issue Date, if you make that transfer within 30
    calendar days after the Issue Date. Even if an amount becomes restricted
    under the foregoing rules, you are still free to redeem the amount from
    your Annuity at any time.
.   We reserve the right to effect exchanges on a delayed basis for all
    contracts. That is, we may price an exchange involving the Sub-accounts on
    the Valuation Day subsequent to the Valuation Day on which the exchange
    request was received. Before implementing such a practice, we would issue a
    separate written notice to Owners that explains the practice in detail.

If we deny one or more transfer requests under the foregoing rules, we will
inform you or your Financial Professional promptly of the circumstances
concerning the denial.
   Contract owners in New York who purchased their contracts prior to March 15,
2004 are not subject to the specific restrictions outlined in bulleted
paragraphs immediately above. In addition, there are contract owners of
different variable annuity contracts that are funded through the same Separate
Account that are not subject to the above-referenced transfer restrictions and,
therefore, might make more numerous and frequent transfers than contract owners
who are subject to such limitations. Finally, there are contract owners of
other variable annuity contracts or variable life contracts that are issued by
American Skandia as well as other insurance companies that have the same
underlying mutual fund portfolios available to them. Since some contract owners
are not subject to the same transfer restrictions, unfavorable consequences
associated with such frequent trading within the underlying mutual fund (e.g.,
greater portfolio turnover, higher transaction costs, or


                                      46




AMERICAN SKANDIA ANNUITIES PROSPECTUS

<R>
performance or tax issues) may affect all contract owners. Similarly, while
contracts managed by a Financial Professional or third party investment advisor
are subject to the restrictions on transfers between investment options that
are discussed above, if the advisor manages a number of contracts in the same
fashion unfavorable consequences may be associated with management activity
since it may involve the movement of a substantial portion of an underlying
mutual fund's assets which may affect all contract owners invested in the
affected options. Apart from jurisdiction-specific and contract differences in
transfer restrictions, we will apply these rules uniformly (including contracts
managed by a Financial Professional or third party investment advisor), and
will not waive a transfer restriction for any contract owner.
</R>

   Although our transfer restrictions are designed to prevent excessive
transfers, they are not capable of preventing every potential occurrence of
excessive transfer activity.

DO YOU OFFER DOLLAR COST AVERAGING?
<R>
Yes. We offer Dollar Cost Averaging during the accumulation period. Dollar Cost
Averaging allows you to systematically transfer an amount periodically from one
investment option to one or more other investment options. You can choose to
transfer earnings only, principal plus earnings or a flat dollar amount. You
may elect a Dollar Cost Averaging program that transfers amounts monthly,
quarterly, semi-annually, or annually from Sub-accounts, or a program that
transfers amounts monthly from Fixed Allocations. By investing amounts on a
regular basis instead of investing the total amount at one time, Dollar Cost
Averaging may decrease the effect of market fluctuation on the investment of
your Purchase Payment. This may result in a lower average cost of units over
time. However, there is no guarantee that Dollar Cost Averaging will result in
a profit or protect against a loss in a declining market. There is no minimum
Account Value required to enroll in a Dollar Cost Averaging program and we do
not deduct a charge for participating in a Dollar Cost Averaging program.
</R>
   You can Dollar Cost Average from Sub-accounts or Fixed Allocations. Dollar
Cost Averaging from Fixed Allocations is subject to a number of rules that
include, but are not limited to the following:
.   You may only use Fixed Allocations with Guarantee Periods of 2 or 3 years.
.   You may only Dollar Cost Average earnings or principal plus earnings. If
    transferring principal plus earnings, the program must be designed to last
    the entire Guarantee Period for the Fixed Allocation.
.   Dollar Cost Averaging transfers from Fixed Allocations are not subject to a
    Market Value Adjustment.
   NOTE: When a Dollar Cost Averaging program is established from a Fixed
Allocation, the fixed rate of interest we credit to your Account Value is
applied to a declining balance due to the transfers of Account Value to the
Sub-accounts during the Guarantee Period. This will reduce the effective rate
of return on the Fixed Allocation over the Guarantee Period.
   The Dollar Cost Averaging program is not available if you have elected an
automatic rebalancing program or an asset allocation program. Dollar Cost
Averaging from Fixed Allocations is not available if you elect the Guaranteed
Return Option Plus or the Guaranteed Return Option.

    American Skandia may offer Fixed Allocations with Guarantee Periods of 6
 months or 12 months exclusively for use with a Dollar Cost Averaging program
 ("DCA Fixed Allocations"). DCA Fixed Allocations are designed to automatically
 transfer Account Value in either 6 or 12 payments under a Dollar Cost
 Averaging program. Dollar Cost Averaging transfers will begin on the day
 following the date the DCA Fixed Allocation is established and each month
 following until the entire principal amount plus earnings is transferred. DCA
 Fixed Allocations may only be established with your initial Purchase Payment
 or additional Purchase Payments. You may not transfer existing Account Value
 to a DCA Fixed Allocation. We reserve the right to terminate offering these
 special purpose Fixed Allocations at any time.
    Account Value allocated to the DCA Fixed Allocation will be transferred to
 the Sub-accounts you choose under the Dollar Cost Averaging program. If you
 terminate the Dollar Cost Averaging program before the entire principal amount
 plus earnings has been transferred to the Sub-account(s), you must transfer
 all remaining Account Value to any other investment option. Unless you provide
 alternate instructions at the time you terminate the Dollar Cost Averaging
 program, Account Value will be transferred to the AST Money Market
 Sub-account. Transfers from Fixed Allocations as part of a Dollar Cost
 Averaging program are not subject to a Market Value Adjustment. However, a
 Market Value Adjustment will apply if you terminate the Dollar Cost Averaging
 program before the entire principal amount plus earnings has been transferred
 to the Sub-account(s).


                                      47




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Managing Your Account Value continued


DO YOU OFFER ANY AUTOMATIC REBALANCING PROGRAMS?
Yes. During the accumulation period, we offer Automatic Rebalancing among the
Sub-accounts you choose. You can choose to have your Account Value rebalanced
monthly, quarterly, semi-annually, or annually. On the appropriate date, the
Sub-accounts you chose are rebalanced to the allocation percentages you
requested. With Automatic Rebalancing, we transfer the appropriate amount from
the "overweighted" Sub-accounts to the "underweighted" Sub-accounts to return
your allocations to the percentages you request. For example, over time the
performance of the Sub-accounts will differ, causing your percentage
allocations to shift.
   Any transfer to or from any Sub-account that is not part of your Automatic
Rebalancing program, will be made; however, that Sub-account will not become
part of your rebalancing program unless we receive instructions from you
indicating that you would like such option to become part of the program.
   There is no minimum Account Value required to enroll in Automatic
Rebalancing. All rebalancing transfers as part of an Automatic Rebalancing
program are not included when counting the number of transfers each year toward
the maximum number of free transfers. We do not deduct a charge for
participating in an Automatic Rebalancing program. Participation in the
Automatic Rebalancing program may be restricted if you are enrolled in certain
other optional programs. Sub-accounts that are part of a Systematic Withdrawal
program or Dollar Cost Averaging program will be excluded from an Automatic
Rebalancing program.

ARE ANY ASSET ALLOCATION PROGRAMS AVAILABLE?
We currently do not offer any asset allocation programs for use with your
Annuity. Prior to December 5, 2005, we made certain asset allocation programs
available. If you enrolled in one of the asset allocation programs prior to
December 5, 2005, see the Appendix entitled, "Additional Information on the
Asset Allocation Programs" for more information on how the programs are
administered.

DO YOU OFFER PROGRAMS DESIGNED TO GUARANTEE A "RETURN OF PREMIUM" AT A FUTURE
DATE?
<R>
Yes. We offer two different programs for investors who wish to invest in the
Sub-accounts but also wish to protect their principal, as of a specific date in
the future. They are the Balanced Investment Program and the Guaranteed Return
Option Plus/SM/ (GRO Plus/SM/). GRO Plus is not available in all states. In
some states where GRO Plus is not available we offer the Guaranteed Return
Option (GRO).) Both the Balanced Investment Program and GRO Plus allow you to
allocate a portion of your Account Value to the available Sub-accounts while
ensuring that your Account Value will at least equal your contributions
adjusted for withdrawals and transfers on a specified date. Under GRO Plus,
Account Value is allocated to and maintained in Fixed Allocations to the extent
we, in our sole discretion, deem it is necessary to support our guarantee under
the program. This differs from the Balanced Investment Program where a set
amount is allocated to a Fixed Allocation regardless of the performance of the
underlying Sub-accounts or the interest rate environment after the amount is
allocated to a Fixed Allocation. Generally, more of your Account Value will be
allocated to the Sub-accounts under the GRO Plus program than under the
Balanced Investment Program (although in periods of poor market performance,
low interest rates and/or as the option progresses to its maturity date, this
may not be the case). You may not want to use either of these programs if you
expect to begin taking annuity payments before the program would be completed.
In addition, as with most return of premium programs, amounts that are
available to allocate to the Sub-accounts may be substantially less than they
would be if you did not elect a return of premium program. This means that, if
investment experience in the Sub-accounts were positive, your Account Value
would grow at a slower rate than if you did not elect a return of premium
program and allocated all of your Account Value to the Sub-accounts.
</R>

BALANCED INVESTMENT PROGRAM
We offer a balanced investment program where a portion of your Account Value is
allocated to a Fixed Allocation and the remaining Account Value is allocated to
the Sub-accounts that you select. When you enroll in the Balanced Investment
Program, you choose the duration that you wish the program to last. This
determines the duration of the Guarantee Period for the Fixed Allocation. Based
on the fixed rate for the Guarantee Period chosen, we calculate the portion of
your Account Value that must be allocated to the Fixed Allocation to grow to a
specific "principal amount" (such as your initial Purchase Payment). We
determine the amount based on the rates then in effect for the Guarantee Period
you choose. If you continue the program until the end of the Guarantee Period
and make no withdrawals or transfers, at the end of the Guarantee Period, the
Fixed Allocation will have grown to equal the "principal amount". Withdrawals
or transfers from the Fixed Allocation before the end of the Guarantee Period
will


                                      48




AMERICAN SKANDIA ANNUITIES PROSPECTUS

terminate the program and may be subject to a Market Value Adjustment. You can
transfer the Account Value that is not allocated to the Fixed Allocation
between any of the Sub-accounts available under your Annuity. Account Value you
allocate to the Sub-accounts is subject to market fluctuations and may increase
or decrease in value. We do not deduct a charge for participating in the
Balanced Investment Program.

   EXAMPLE
   Assume you invest $100,000. You choose a 10-year program and allocate a
   portion of your Account Value to a Fixed Allocation with a 10-year Guarantee
   Period. The rate for the 10-year Guarantee Period is 2.50%*. Based on the
   fixed interest rate for the Guarantee Period chosen, the factor is 0.781198
   for determining how much of your Account Value will be allocated to the
   Fixed Allocation. That means that $78,120 will be allocated to the Fixed
   Allocation and the remaining Account Value ($21,880) will be allocated to
   the Sub-accounts. Assuming that you do not make any withdrawals or transfers
   from the Fixed Allocation, it will grow to $100,000 at the end of the
   Guarantee Period. Of course we cannot predict the value of the remaining
   Account Value that was allocated to the Sub-accounts.
   The Guaranteed Return Option Plus (GRO Plus) guarantees that, after a
seven-year period following commencement of the program ("maturity date") and
on each anniversary of the maturity date thereafter, your Account Value will
not be less than the Account Value on the effective date of the program. The
program also offers you the option to elect a second, enhanced guarantee amount
at a higher Account Value subject to a separate maturity period (and its
anniversaries). The GRO Plus program may be appropriate if you wish to protect
a principal amount (called the "Protected Principal Value") against market
downturns as of a specific date in the future, but also wish to exercise
control of your available Account Value among the Sub-accounts to participate
in market experience. Under the GRO Plus program, you give us the right to
allocate amounts to Fixed Allocations as needed to support the guarantees
provided. The available Account Value is the amount not allocated to the Fixed
Allocations to support the guarantees provided. There is a fee associated with
this program. See "Living Benefit Programs," later in this Prospectus, for more
information about this program.

<R>
MAY I GIVE MY FINANCIAL PROFESSIONAL PERMISSION TO FORWARD TRANSACTION
INSTRUCTIONS?
Yes. Your Financial Professional may forward instructions regarding the
allocation of your account and request financial transactions between
investment options while you are living, subject to our rules and unless you
tell us otherwise. For annuities issued on or after July 21, 2006, subject to
our rules, we will require affirmative consent from you in order to give your
Financial Professional such authority. If your Financial Professional has this
authority, we deem that all transactions that are directed by your Financial
Professional with respect to your Annuity have been authorized by you. You must
contact us immediately if and when you revoke such authority. We will not be
responsible for acting on instructions from your Financial Professional until
we receive notification of the revocation of such person's authority. We may
also suspend, cancel or limit these privileges at any time. We will notify you
if we do.
</R>

MAY I AUTHORIZE MY THIRD PARTY INVESTMENT ADVISOR TO MANAGE MY ACCOUNT?
Yes. You may engage your own investment advisor to manage your account. These
investment advisors may be firms or persons who also are appointed by us, or
whose affiliated broker-dealers are appointed by us, as authorized sellers of
the Annuities. Even if this is the case, however, please note that the
investment advisor you engage to provide advice and/or make transfers for you,
is not acting on our behalf, but rather is acting on your behalf. We do not
offer advice about how to allocate your Account Value under any circumstance.
As such, we are not responsible for any recommendations such investment
advisors make, any investment models or asset allocation programs they choose
to follow or any specific transfers they make on your behalf.
   Any fee that is charged by your investment advisor is in addition to the
fees and expenses that apply under your Annuity. If you authorize your
investment advisor to withdraw amounts from your Annuity (to the extent
permitted) to pay for the investment advisor's fee, as with any other
withdrawal from your Annuity, you may incur adverse tax consequences, a CDSC
and/or a market value adjustment. Withdrawals to pay your investment advisor
generally will also reduce the level of various living and death benefit
guarantees provided (e.g. the withdrawals will reduce proportionately your
Annuity's guaranteed minimum death benefit.) We are not a party to the
agreement you have with

* The rate in this example is hypothetical and may not reflect the current rate
for Guarantee Periods of this duration.



                                      49




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Managing Your Account Value continued

<R>
your investment advisor and do not verify that amounts withdrawn from your
Annuity, including amounts withdrawn to pay for the investment advisor's fee,
are within the terms of your agreement with your investment advisor. You will,
however, receive confirmations of transactions that affect your Annuity. If
your investment advisor has also acted as your Financial Professional with
respect to the sale of your Annuity, he or she may be receiving compensation
for services provided both as a Financial Professional and investment advisor.
Alternatively, the investment advisor may compensate the Financial Professional
from whom you purchased your Annuity for the referral that led you to enter
into your investment advisory relationship with the investment advisor. If you
are interested in the details about the compensation that your investment
advisor and/or your Financial Professional receive in connection with your
Annuity, you should ask them for more details.
   We or an affiliate of ours may provide administrative support to licensed,
registered Financial Professionals or Investment advisors who you authorize to
make financial transactions on your behalf. We may require Financial
Professionals or investment advisors, who are authorized by multiple contract
owners to make financial transactions, to enter into an administrative
agreement with American Skandia as a condition of our accepting transactions on
your behalf. The administrative agreement may impose limitations on the
Financial Professional's or investment advisor's ability to request financial
transactions on your behalf. These limitations are intended to minimize the
detrimental impact of a Financial Professional who is in a position to transfer
large amounts of money for multiple clients in a particular Portfolio or type
of portfolio or to comply with specific restrictions or limitations imposed by
a Portfolio(s) of American Skandia.
   Please Note: Annuities where your Financial Professional or investment
advisor has the authority to forward instruction on financial transactions are
also subject to the restrictions on transfers between investment options that
are discussed in the section entitled "ARE THERE RESTRICTIONS OR CHARGES ON
TRANSFERS BETWEEN INVESTMENT OPTIONS?" Since transfer activity directed by a
Financial Professional or third party investment adviser may result in
unfavorable consequences to all contract owners invested in the affected
options, we reserve the right to limit the investment options available to a
particular Owner where such authority as described above has been given to a
Financial Professional or investment advisor or impose other transfer
restrictions we deem necessary. The administrative agreement may limit the
available investment options, require advance notice of large transactions, or
impose other trading limitations on your Financial Professional. Your Financial
Professional will be informed of all such restrictions on an ongoing basis. We
may also require that your Financial Professional transmit all financial
transactions using the electronic trading functionality available through our
Internet website (www.americanskandia.prudential.com).
</R>
Limitations that we may impose on your Financial Professional or investment
advisor under the terms of the administrative agreement do not apply to
financial transactions requested by an Owner on their own behalf, except as
otherwise described in this Prospectus.

HOW DO THE FIXED ALLOCATIONS WORK?
We credit a fixed interest rate to the Fixed Allocation throughout a set period
of time called a "Guarantee Period." Fixed Allocations currently are offered
with Guarantee Periods from 1 to 10 years. We may make Fixed Allocations of
different durations available in the future, including Fixed Allocations
offered exclusively for use with certain optional investment programs. Fixed
Allocations may not be available in all states and may not always be available
for all Guarantee Periods depending on market factors and other considerations.
   The interest rate credited to a Fixed Allocation is the rate in effect when
the Guarantee Period begins and does not change during the Guarantee Period.
The rates are an effective annual rate of interest. We determine the interest
rates for the various Guarantee Periods. At the time that we confirm your Fixed
Allocation, we will advise you of the interest rate in effect and the date your
Fixed Allocation matures. We may change the rates we credit new Fixed
Allocations at any time. Any change in interest rate does not affect Fixed
Allocations that were in effect before the date of the change. To inquire as to
the current rates for Fixed Allocations, please call 1-800-752-6342.
   A Guarantee Period for a Fixed Allocation begins:
.   when all or part of a net Purchase Payment is allocated to that particular
    Guarantee Period;
.   upon transfer of any of your Account Value to a Fixed Allocation for that
    particular Guarantee Period; or
.   when you "renew" a Fixed Allocation by electing a new Guarantee Period.
   To the extent permitted by law, we may establish different interest rates
for Fixed Allocations offered to a class of Owners who choose to participate in
various optional investment programs we make available. This may include, but
is not limited to, Owners who elect to use Fixed Allocations under a dollar
cost averaging program (see "Do You Offer Dollar Cost Averaging?") or a
balanced investment program (see "Do you offer programs designed to guarantee a
"Return of Premium" at a future date?").


                                      50




AMERICAN SKANDIA ANNUITIES PROSPECTUS

The interest rate credited to Fixed Allocations offered to this class of
purchasers may be different than those offered to other purchasers who choose
the same Guarantee Period but who do not participate in an optional investment
program. Any such program is at our sole discretion.

    American Skandia may offer Fixed Allocations with Guarantee Periods of 3
 months or 6 months exclusively for use as a short-term Fixed Allocation
 ("Short-term Fixed Allocations"). Short-term Fixed Allocations may only be
 established with your initial Purchase Payment or additional Purchase
 Payments. You may not transfer existing Account Value to a Short-term Fixed
 Allocation. We reserve the right to terminate offering these special purpose
 Fixed Allocations at any time.
    On the Maturity Date of the Short-term Fixed Allocation, the Account Value
 will be transferred to the Sub-account(s) you choose at the inception of the
 program. If no instructions are provided, such Account Value will be
 transferred to the AST Money Market Sub-account. Short-term Fixed Allocations
 may not be renewed on the Maturity Date. If you surrender the Annuity or
 transfer any Account Value from the Short-term Fixed Allocation to any other
 investment option before the end of the Guarantee Period, a Market Value
 Adjustment will apply.

HOW DO YOU DETERMINE RATES FOR FIXED ALLOCATIONS?
We do not have a specific formula for determining the fixed interest rates for
Fixed Allocations. Generally the interest rates we offer for Fixed Allocations
will reflect the investment returns available on the types of investments we
make to support our fixed rate guarantees. These investment types may include
cash, debt securities guaranteed by the United States government and its
agencies and instrumentalities, money market instruments, corporate debt
obligations of different durations, private placements, asset-backed
obligations and municipal bonds. In determining rates we also consider factors
such as the length of the Guarantee Period for the Fixed Allocation, regulatory
and tax requirements, liquidity of the markets for the type of investments we
make, commissions, administrative and investment expenses, our insurance risks
in relation to the Fixed Allocations, general economic trends and competition.
Some of these considerations are similar to those we consider in determining
the Insurance Charge that we deduct from Account Value allocated to the
Sub-accounts.
   We will credit interest on a new Fixed Allocation in an existing Annuity at
a rate not less than the rate we are then crediting to Fixed Allocations for
the same Guarantee Period selected by new Annuity purchasers in the same class.
   The interest rate we credit for a Fixed Allocation is subject to a minimum.
Please refer to the Statement of Additional Information. In certain states the
interest rate may be subject to a minimum under state law or regulation.

HOW DOES THE MARKET VALUE ADJUSTMENT WORK?
If you transfer or withdraw Account Value from a Fixed Allocation more than 30
days before the end of its Guarantee Period, we will adjust the value of your
investment based on a formula, called a "Market Value Adjustment" or "MVA". The
amount of any Market Value Adjustment can be either positive or negative,
depending on the movement of a combination of Strip Yields on Strips and an
Option-adjusted Spread (each as defined below) between the time that you
purchase the Fixed Allocation and the time you make a transfer or withdrawal.
The Market Value Adjustment formula compares the combination of Strip Yields
for Strips and the Option-adjusted Spreads as of the date the Guarantee Period
began with the combination of Strip Yields for Strips and the Option-adjusted
Spreads as of the date the MVA is being calculated. In certain states the
amount of any Market Value Adjustment may be limited under state law or
regulation. If your Annuity is governed by the laws of that state, any Market
Value Adjustment that applies will be subject to our rules for complying with
such law or regulation.
.   "Strips" are a form of security where ownership of the interest portion of
    United States Treasury securities are separated from ownership of the
    underlying principal amount or corpus.
.   "Strip Yields" are the yields payable on coupon Strips of United States
    Treasury securities.
.   "Option-adjusted Spread" is the difference between the yields on corporate
    debt securities (adjusted to disregard options on such securities) and
    government debt securities of comparable duration. We currently use the
    Merrill Lynch 1 to 10 year Investment Grade Corporate Bond Index of
    Option-adjusted Spreads.


                                      51




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Managing Your Account Value continued


MVA FORMULA
The MVA formula is applied separately to each Fixed Allocation to determine the
Account Value of the Fixed Allocation on a particular date. The formula is as
follows:

                         [(1+I) / (1+J+0.0010)]/N/365/

where:

   I is the Strip Yield as of the start date of the Guarantee Period for coupon
   Strips maturing at the end of the applicable Guarantee Period plus the
   Option-adjusted Spread. If there are no Strips maturing at that time, we
   will use the Strip Yield for the Strips maturing as soon as possible after
   the Guarantee Period ends.

   J is the Strip Yield as of the date the MVA formula is being applied for
   coupon Strips maturing at the end of the applicable Guarantee Period plus
   the Option-adjusted Spread. If there are no Strips maturing at that time, we
   will use the Strip Yield for the Strips maturing as soon as possible after
   the Guarantee Period ends.

   N is the number of days remaining in the original Guarantee Period.

   If you surrender your Annuity under the right to cancel provision, the MVA
   formula is:

                           [(1 + I)/(1 + J)]/N/365/

MVA EXAMPLES
The following hypothetical examples show the effect of the MVA in determining
Account Value. Assume the following:
.   You allocate $50,000 into a Fixed Allocation (we refer to this as the
    "Allocation Date" in these examples) with a Guarantee Period of 5 years (we
    refer to this as the "Maturity Date" in these examples).
.   The Strip Yields for coupon Strips beginning on Allocation Date and
    maturing on Maturity Date plus the Option-adjusted Spread is 5.50% (I =
    5.50%).
.   You make no withdrawals or transfers until you decide to withdraw the
    entire Fixed Allocation after exactly three (3) years, at which point 730
    days remain before the Maturity Date (N = 730).

EXAMPLE OF POSITIVE MVA
Assume that at the time you request the withdrawal, the Strip Yields for Strips
maturing on the Maturity Date plus the Option-adjusted Spread is 4.00% (J =
4.00%). Based on these assumptions, the MVA would be calculated as follows:

                  MVA Factor = [(1+I)/(1+J+0.0010)]/N/365 /=
                          [1.055/1.041]/2 /= 1.027078

                          Interim Value = $57,881.25

                 Account Value after MVA = Interim Value x MVA
                              Factor = $59,448.56

EXAMPLE OF NEGATIVE MVA
Assume that at the time you request the withdrawal, the Strip Yields for Strips
maturing on the Maturity Date plus the Option-adjusted Spread is 7.00% (J =
7.00%). Based on these assumptions, the MVA would be calculated as follows:

                 MVA Factor  =  [(1+I)/(1+J+0.0010)]/N/365  /=
                         [1.055/1.071]/2  /=  0.970345

                         Interim Value  =  $57,881.25

                Account Value after MVA  =  Interim Value x MVA
                            Factor  =  $56,164.78.

WHAT HAPPENS WHEN MY GUARANTEE PERIOD MATURES?
The "Maturity Date" for a Fixed Allocation is the last day of the Guarantee
Period. Before the Maturity Date, you may choose to renew the Fixed Allocation
for a new Guarantee Period of the same or different length or you may transfer
all or part of that Fixed Allocation's Account Value to another Fixed
Allocation or to one or more Sub-accounts. We will not charge a MVA if you
choose to renew a Fixed Allocation on its Maturity Date or transfer the Account
Value to one or more Sub-accounts. We will notify you before the end of the
Guarantee Period about the fixed interest rates that we are currently crediting
to all Fixed Allocations that are being offered. The rates being credited to
Fixed Allocations may change before the Maturity Date.
   If you do not specify how you want a Fixed Allocation to be allocated on its
Maturity Date, we will then transfer the Account Value of the Fixed Allocation
to the AST Money Market Sub-account. You can then elect to allocate the Account
Value to any of the Sub-accounts or to a new Fixed Allocation.


                                      52




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Access To Account Value

WHAT TYPES OF DISTRIBUTIONS ARE AVAILABLE TO ME?
During the accumulation period you can access your Account Value through
partial withdrawals, Systematic Withdrawals, and where required for tax
purposes, Minimum Distributions. You can also surrender your Annuity at any
time. We may deduct a portion of the Account Value being withdrawn or
surrendered as a CDSC, if applicable. If you surrender your Annuity, in
addition to any CDSC, we may deduct the Annual Maintenance Fee, any Tax Charge
that applies and the charge for any optional benefits. We may also apply a
Market Value Adjustment to any Fixed Allocations being withdrawn or
surrendered. Certain amounts may be available to you each Annuity Year that are
not subject to a CDSC. These are called "Free Withdrawals." Unless you notify
us differently, withdrawals are taken pro-rata based on the Account Value in
the investment options at the time we receive your withdrawal request. Each of
these types of distributions is described more fully below.

ARE THERE TAX IMPLICATIONS FOR DISTRIBUTIONS?
(For more information, see "Tax Considerations.")

DURING THE ACCUMULATION PERIOD
A distribution during the accumulation period is deemed to come first from any
"gain" in your Annuity and second as a return of your "tax basis", if any.
Distributions from your Annuity are generally subject to ordinary income
taxation on the amount of any investment gain unless the distribution qualifies
as a non-taxable exchange or transfer. If you take a distribution prior to the
taxpayer's age 59 1/2, you may be subject to a 10% penalty in addition to
ordinary income taxes on any gain. You may wish to consult a professional tax
advisor for advice before requesting a distribution.

DURING THE ANNUITIZATION PERIOD
During the annuitization period, a portion of each annuity payment is taxed as
ordinary income at the tax rate you are subject to at the time of the payment.
The Code and regulations have "exclusionary rules" that we use to determine
what portion of each annuity payment should be treated as a return of any tax
basis you have in your Annuity. Once the tax basis in your Annuity has been
distributed, the remaining annuity payments are taxable as ordinary income. The
tax basis in your Annuity may be based on the tax-basis from a prior contract
in the case of a 1035 exchange or other qualifying transfer.

CAN I WITHDRAW A PORTION OF MY ANNUITY?
Yes, you can make a withdrawal during the accumulation period.
.   To meet liquidity needs, you can withdraw a limited amount from your
    Annuity during each Annuity Year without application of any CDSC that might
    otherwise be applicable being applied. We call this the "Free Withdrawal"
    amount. The Free Withdrawal amount is not available if you choose to
    surrender your Annuity. Amounts withdrawn as a Free Withdrawal do not
    reduce the amount of CDSC that may apply upon a subsequent withdrawal or
    surrender of your Annuity. The minimum Free Withdrawal you may request is
    $100.
.   You can also make withdrawals in excess of the Free Withdrawal amount. The
    maximum amount that you may withdraw will depend on your Annuity's
    Surrender Value as of the date we process the withdrawal request. After any
    partial withdrawal, your Annuity must have a Surrender Value of at least
    $1,000, or we may treat the partial withdrawal request as a request to
    fully surrender your Annuity. The minimum partial withdrawal you may
    request is $100.
<R>
   To determine if a CDSC applies to partial withdrawals, we:
1. First determine what, if any, amounts qualify as a Free Withdrawal. These
   amounts are not subject to the CDSC.
2. Next determine what, if any, remaining amounts are withdrawals of Purchase
   Payments. Amounts in excess of the Free Withdrawal amount will be treated as
   withdrawals of Purchase Payments unless all Purchase Payments have been
   previously withdrawn. These amounts are subject to the CDSC. Purchase
   Payments are withdrawn on a first in, first out basis. We withdraw your
   oldest Purchase Payments first so that the lowest CDSC will apply to the
   amount withdrawn.
3. Withdraw any remaining amounts from any other Account Value. These amounts
   are not subject to the CDSC.
</R>
   You may request a withdrawal for an exact dollar amount after deduction of
any CDSC that applies (called a "net withdrawal") or request a gross withdrawal
from which we will deduct any CDSC that applies, resulting in less money being
payable to you than the amount you requested. If you request a net withdrawal,
the amount deducted from your Account Value to pay the CDSC may also be subject
to a CDSC.
   Partial withdrawals may also be available following annuitization but only
if you choose certain annuity payment options.
   To request the forms necessary to make a withdrawal from your Annuity, call
1-800-752-6342 or visit our Internet Website at
www.americanskandia.prudential.com.


                                      53




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Access To Account Value continued


HOW MUCH CAN I WITHDRAW AS A FREE WITHDRAWAL?
<R>
The maximum Free Withdrawal amount during each Annuity Year is equal to 10% of
all Purchase Payments that are subject to a CDSC. Withdrawals made within an
Annuity Year reduce the Free Withdrawal amount available for the remainder of
the Annuity Year. If you do not make a withdrawal during an Annuity Year, you
are not allowed to carry over the Free Withdrawal amount to the next Annuity
Year.
</R>

CAN I MAKE PERIODIC WITHDRAWALS FROM MY ANNUITY DURING THE ACCUMULATION PERIOD?
Yes. We call these "Systematic Withdrawals." You can receive Systematic
Withdrawals of earnings only or a flat dollar amount. Systematic Withdrawals
may be subject to a CDSC. We will determine whether a CDSC applies and the
amount in the same way as we would for a partial withdrawal.
   Systematic Withdrawals can be made from Account Value allocated to the
Sub-accounts or Fixed Allocations. Generally, Systematic Withdrawals from Fixed
Allocations are limited to earnings accrued after the program of Systematic
Withdrawals begins, or payments of fixed dollar amounts that do not exceed such
earnings. Systematic Withdrawals are available on a monthly, quarterly,
semi-annual or annual basis.
   The minimum amount for each Systematic Withdrawal is $100. If any scheduled
Systematic Withdrawal is for less than $100 (which may occur under a program
that provides payment of an amount equal to the earnings in your Annuity for
the period requested), we may postpone the withdrawal and add the expected
amount to the amount that is to be withdrawn on the next scheduled Systematic
Withdrawal.

<R>
DO YOU OFFER A PROGRAM FOR WITHDRAWALS UNDER SECTIONS 72(T)/72(Q) OF THE
INTERNAL
</R>
REVENUE CODE?
<R>
Yes. If your Annuity is used as a funding vehicle for certain retirement plans
that receive special tax treatment under Sections 401, 403(b), 408 or 408A of
the Code, Section 72(t) of the Code may provide an exception to the 10% penalty
tax on distributions made prior to age 59 1/2 if you elect to receive
distributions as a series of "substantially equal periodic payments". For
contracts issued as nonqualified annuities, the Internal Revenue Code provides
for the same exemption from penalty under Section 72(q) of the Code.
Distributions received under these provisions in any Annuity Year that exceed
the maximum amount available as a free withdrawal will be subject to any
applicable CDSC. We may apply a Market Value Adjustment to any Fixed
Allocations. To request a program that complies with Sections 72(t)/72(q), you
must provide us with certain required information in writing on a form
acceptable to us. We may require advance notice to allow us to calculate the
amount of 72(t)/72(q) withdrawals. The Surrender Value of your Annuity must be
at least $20,000 before we will allow you to begin a program for withdrawals
under Sections 72(t)/72(q). The minimum amount for any such withdrawal is $100
and payments may be made monthly, quarterly, semi-annually or annually.
</R>
   You may also annuitize your contract and begin receiving payments for the
remainder of your life (or life expectancy) as a means of receiving income
payments before age 59 1/2 that are not subject to the 10% penalty.

WHAT ARE MINIMUM DISTRIBUTIONS AND WHEN WOULD I NEED TO MAKE THEM?
(See "Tax Considerations" for a further discussion of Minimum Distributions.)
<R>
   Minimum Distributions are a type of Systematic Withdrawal we allow to meet
distribution requirements under Sections 401, 403(b) or 408 of the Code.
Minimum distribution rules do not apply to Roth IRAs during the Owner's
lifetime. Under the Code, you may be required to begin receiving periodic
amounts from your Annuity. In such case, we will allow you to make Systematic
Withdrawals in amounts that satisfy the minimum distribution rules under the
Code. We do not assess a CDSC on Minimum Distributions from your Annuity if you
are required by law to take such Minimum Distributions from your Annuity at the
time it is taken. However, a CDSC (if applicable) may be assessed on that
portion of a Systematic Withdrawal that is taken to satisfy the minimum
distribution requirements in relation to other savings or investment plans
under other qualified retirement plans not maintained with American Skandia.
   The amount of the required Minimum Distribution for your particular
situation may depend on other annuities, savings or investments. We will only
calculate the amount of your required Minimum Distribution based on the value
of your Annuity. We require three (3) days advance written notice to calculate
and process the amount of your payments. You may elect to have Minimum
Distributions paid out monthly, quarterly, semi-annually or annually. The $100
minimum amount that applies to Systematic Withdrawals applies to monthly
minimum distributions but does not apply to Minimum Distributions taken out on
a quarterly, semi-annual or annual basis.
</R>
   You may also annuitize your contract and begin receiving payments for the
remainder of your life (or life expectancy) as a means of receiving income
payments and satisfying the Minimum Distribution requirements under the Code.


                                      54




AMERICAN SKANDIA ANNUITIES PROSPECTUS


CAN I SURRENDER MY ANNUITY FOR ITS VALUE?
Yes. During the accumulation period you can surrender your Annuity at any time.
Upon surrender, you will receive the Surrender Value. Upon surrender of your
Annuity, you will no longer have any rights under the surrendered Annuity.
<R>
   For purposes of calculating any applicable CDSC on surrender, the Purchase
Payments being withdrawn may be greater than your remaining Account Value or
the amount of your withdrawal request. This is most likely to occur if you have
made prior withdrawals under the Free Withdrawal provision or if your Account
Value has declined in value due to negative market performance. In that
scenario, we would determine the CDSC amount as the applicable percentage of
the Purchase Payments being withdrawn, rather than as a percentage of the
remaining Account Value or withdrawal request. Thus, the CDSC would be greater
than if it were calculated as a percentage of remaining Account Value or
withdrawal amount. We may apply a Market Value Adjustment to any Fixed
Allocations.
</R>
   Under certain annuity payment options, you may be allowed to surrender your
Annuity for its then current value.
   To request the forms necessary to surrender your Annuity, call
1-800-752-6342 or visit our Internet Website at
www.americanskandia.prudential.com.

WHAT IS A MEDICALLY-RELATED SURRENDER AND HOW DO I QUALIFY?
<R>
Where permitted by law, you may request to surrender all or part of your
Annuity prior to the Annuity Date without application of any otherwise
applicable CDSC upon occurrence of a medically-related "Contingency Event" as
defined below. We may apply a Market Value Adjustment to any Fixed Allocations.
If you request a full surrender, the amount payable will be your Account Value
minus, with respect to XT6, (a) the amount of any XTra Credits applied within
12 months prior to your request to surrender your Annuity under this provision;
and (b) the amount of any XTra Credits added in conjunction with any Purchase
Payments received after our receipt of your request for a medically-related
surrender (e.g. Purchase Payments received at such time pursuant to a salary
reduction program). With respect to partial surrenders, we similarly reserve
the right to take back XTra Credits as described above.
</R>
   This waiver of any applicable CDSC is subject to our rules, including but
not limited to the following:
.   The Annuitant must have been named or any change of Annuitant must have
    been accepted by us, prior to the "Contingency Event" described below in
    order to qualify for a medically-related surrender;
.   the Annuitant must be alive as of the date we pay the proceeds of such
    surrender request;
.   if the Owner is one or more natural persons, all such Owners must also be
    alive at such time;
<R>
.   we must receive satisfactory proof of the Annuitant's confinement in a
    Medical Care Facility or Fatal Illness in writing on a form satisfactory to
    us;
.   this benefit is not available if the total Purchase Payments received
    exceed $500,000 for all annuities issued by us with this benefit where the
    same person is named as Annuitant; and
</R>
.   no additional Purchase Payments can be made to the Annuity.

   A "Contingency Event" occurs if the Annuitant is:
.   first confined in a "Medical Care Facility" while your Annuity is in force
    and remains confined for at least 90 days in a row; or
.   first diagnosed as having a "Fatal Illness" while your Annuity is in force.
   The definitions of "Medical Care Facility" and "Fatal Illness," as well as
additional terms and conditions, are provided in your Annuity. Specific details
and definitions in relation to this benefit may differ in certain jurisdictions.

WHAT TYPES OF ANNUITY OPTIONS ARE AVAILABLE?
We currently make available annuity options that provide fixed annuity
payments, variable annuity payments or adjustable annuity payments. Your
contract provides certain fixed annuity payment options. We currently offer
variable annuity payment options, which are provided by exchanging the deferred
annuity contract described in this prospectus for a separate contract issued as
an annuity settlement option and described in a separate prospectus. The
variable annuity payment options are described in detail in a separate
prospectus, which is available upon request and which will be provided to you
if and when you elect one of the variable annuity payment options. The separate
prospectus sets forth the fees and charges under the variable payment option,
which may be higher than those set forth in this prospectus. We do not
guarantee to continue to make available variable annuity payment options or any
other option other than the fixed annuity payment options set forth in your
contract. Fixed options provide the same amount with each payment. Variable
options generally provide a payment which may increase or decrease depending on
the investment performance of the Sub-accounts and may include a guarantee
feature. Adjustable options provide a fixed payment that is periodically
adjusted based on current interest rates. Please refer to the "Guaranteed
Minimum Income Benefit," the "Lifetime Five Income Benefit and the Spousal
Lifetime Five Income Benefit," under "Living Benefits" below for a


                                      55




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Access To Account Value continued

description of annuity options that are available when you elect these
benefits. For additional information on annuity payment options you may request
a Statement of Additional Information.
   When you purchase an Annuity, or at a later date, you may choose an Annuity
Date, an annuity option and the frequency of annuity payments. You may change
your choices before the Annuity Date under the terms of your contract. A
maximum Annuity Date may be required by law. The Annuity Date may depend on the
annuity option you choose. Certain annuity options may not be available
depending on the age of the Annuitant.
   Certain of these annuity options may be available to Beneficiaries who
choose to receive the Death Benefit proceeds as a series of payments instead of
a lump sum payment.
   Please note, with respect to XT6, you may not annuitize within the first
three Annuity Years and with respect to ASAP III and APEX II, you may not
annuitize within the first Annuity Year.

Option 1

Payments for Life: Under this option, income is payable periodically until the
death of the "key life". The "key life" (as used in this section) is the person
or persons upon whose life annuity payments are based. No additional annuity
payments are made after the death of the key life. Since no minimum number of
payments is guaranteed, this option offers the largest amount of periodic
payments of the life contingent annuity options. It is possible that only one
payment will be payable if the death of the key life occurs before the date the
second payment was due, and no other payments nor death benefits would be
payable. This Option is currently available on a fixed or variable basis. If
you choose this option on a variable basis, you will be provided with a
separate prospectus that describes such variable annuity. Under this option,
you cannot make a partial or full surrender of the annuity.

Option 2

Payments Based on Joint Lives: Under this option, income is payable
periodically during the joint lifetime of two key lives, and thereafter during
the remaining lifetime of the survivor, ceasing with the last payment prior to
the survivor's death. No minimum number of payments is guaranteed under this
option. It is possible that only one payment will be payable if the death of
all the key lives occurs before the date the second payment was due, and no
other payments or death benefits would be payable. This Option is currently
available on a fixed or variable basis. If you choose this option on a variable
basis, you will be provided with a separate prospectus that describes such
variable annuity. Under this option, you cannot make a partial or full
surrender of the annuity.

Option 3

Payments for Life with a Certain Period: Under this option, income is payable
until the death of the key life. However, if the key life dies before the end
of the period selected (5, 10 or 15 years), the remaining payments are paid to
the Beneficiary until the end of such period. This Option is currently
available on a fixed or variable basis. If you choose this option on a variable
basis, you will be provided with a separate prospectus that describes such
variable annuity. If you elect to receive payments on a variable basis under
this option, you can request partial or full surrender of the annuity and
receive its then current cash value (if any) subject to our rules.

Option 4

Fixed Payments for a Certain Period: Under this option, income is payable
periodically for a specified number of years. If the payee dies before the end
of the specified number of years, the remaining payments are paid to the
Beneficiary until the end of such period. Note that under this option, payments
are not based on any assumptions of life expectancy. Therefore, that portion of
the Insurance Charge assessed to cover the risk that key lives outlive our
expectations provides no benefit to an Owner selecting this option. Under this
option, you cannot make a partial or full surrender of the annuity.

Option 5

Variable Payments for Life with a Cash Value: Under this option, benefits are
payable periodically until the death of the key life. Benefits may increase or
decrease depending on the investment performance of the Sub-accounts. This
option has a cash value that also varies with the investment performance of the
Sub-account. The cash value provides a "cushion" from volatile investment
performance so that negative investment performance does not automatically
result in a decrease in the annuity payment each month, and positive investment
performance does not automatically result in an increase in the annuity payment
each month. The cushion generally "stabilizes" monthly annuity payments. Any
cash value remaining on the death of the key life is paid to the Beneficiary in
a lump sum or as periodic payments. Under this option, you can request partial
or full surrender of the annuity and receive its then current cash value (if
any) subject to our rules. If you choose this option, you will be provided with
a separate prospectus that describes such variable annuity.

Option 6

Variable Payments for Life with a Cash Value and Guarantee: Under this option,
benefits are payable as described in Option 5; except that, while the key life
is alive, the annuity


                                      56




AMERICAN SKANDIA ANNUITIES PROSPECTUS

payment will not be less than a guaranteed amount, which generally is equal to
the first annuity payment. We charge an additional amount for this guarantee.
Under this option, any cash value remaining on the death of the key life is
paid to the Beneficiary in a lump sum or as periodic payments. Under this
option, you can request partial or full surrender of the annuity and receive
its then current cash value (if any) subject to our rules. If you choose this
option, you will be provided with a separate prospectus that describes such
variable annuity.
   We may make different annuity payment options available in the future. We do
not guarantee to continue to make available variable annuity payment options or
any other option other than the fixed annuity payment options set forth in your
contract.

HOW AND WHEN DO I CHOOSE THE ANNUITY PAYMENT OPTION?
Unless prohibited by law, we require that you elect either a life annuity or an
annuity with a certain period of at least 5 years if any CDSC would apply were
you to surrender your Annuity on the Annuity Date. Certain annuity payment
options may not be available if your Annuity Date occurs during the period that
a CDSC would apply.
   You have a right to choose your annuity start date. If you have not provided
us with your Annuity Date or annuity payment option in writing, then:
.   a default date for the Annuity Date will be the first day of the calendar
    month following the later of the Annuitant's 85th birthday or the fifth
    anniversary of our receipt of your request to purchase an Annuity; and
.   the annuity payments, where allowed by law, will be calculated on a fixed
    basis under Option 3, Payments for Life with 10 years certain.
   If you choose to defer the Annuity Date beyond the default date, the IRS may
not consider your contract to be an annuity under the tax law. If that should
occur, all gain in your Annuity at that time will become immediately taxable to
you. Further, each subsequent year's increase in Account Value would be taxable
in that year. By choosing to continue to defer after the default date, you will
assume the risk that your Annuity will not be considered an annuity for federal
income tax purposes.

HOW ARE ANNUITY PAYMENTS CALCULATED?
FIXED ANNUITY PAYMENTS (OPTIONS 1-4)
If you choose to receive fixed annuity payments, you will receive equal
fixed-dollar payments throughout the period you select. The amount of the fixed
payment will vary depending on the annuity payment option and payment frequency
you select. Generally, the first annuity payment is determined by multiplying
the Account Value, minus any state premium taxes that may apply, by the factor
determined from our table of annuity rates. The table of annuity rates differs
based on the type of annuity chosen and the frequency of payment selected. Our
rates will not be less than our guaranteed minimum rates. These guaranteed
minimum rates are derived from the a2000 Individual Annuity Mortality Table
with an assumed interest rate of 3% per annum. Where required by law or
regulation, such annuity table will have rates that do not differ according to
the gender of the key life. Otherwise, the rates will differ according to the
gender of the key life.

VARIABLE ANNUITY PAYMENTS
Generally, we currently offer three different types of variable annuity payment
options. The following is a brief description of the variable annuity payment
options. If you choose a variable annuity payment option, you will be provided
with a separate prospectus that describes such variable annuity. There is no
guarantee that we will continue to make available variable annuity payment
options. The first annuity payment will be calculated based upon the assumed
investment return ("AIR"). You select the AIR before we start to make annuity
payments. You will not receive annuity payments until you choose an AIR. The
remaining annuity payments will fluctuate based on the performance of the
Sub-accounts relative to the AIR, as well as other factors described below. The
greater the AIR, the greater the first annuity payment. A higher AIR may result
in smaller potential growth in the annuity payments. A lower AIR results in a
lower initial annuity payment. Within payment options 1-3, if the Sub-accounts
you choose perform exactly the same as the AIR, then subsequent annuity
payments will be the same as the first annuity payment. If the Sub-accounts you
choose perform better than the AIR, then subsequent annuity payments will be
higher than the first annuity payment. If the Sub-accounts you choose perform
worse than the AIR, then subsequent annuity payments will be lower than the
first. Within payment options 5 and 6, the cash value for the Annuitant (while
alive) and a variable period of time during which annuity payments will be made
whether or not the Annuitant is still alive are adjusted based on the
performance of the Sub-accounts relative to the AIR; however, subsequent
annuity payments do not always increase or decrease based on the performance of
the Sub-accounts relative to the AIR.

 .   Variable Payments (Options 1-3)
     We calculate each annuity payment amount by multiplying the number of
     units scheduled to be redeemed under a schedule of units for each
     Sub-account by the Unit Value of each Sub-account on the annuity payment
     date. We


                                      57




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Access To Account Value continued

     determine the schedule of units based on your Account Value (minus any
     premium tax that applies) at the time you elect to begin receiving annuity
     payments. The schedule of units will vary based on the annuity payment
     option selected, the length of any certain period (if applicable), the
     Annuitant's age and gender (if annuity payments are due for the life of
     the Annuitant) and the Unit Value of the Sub-accounts you initially
     selected on the Issue Date. The calculation is performed for each
     Sub-account, and the sum of the Sub-account calculations equals the amount
     of your annuity payment. Other than to fund annuity payments, the number
     of units allocated to each Sub-account will not change unless you transfer
     among the Sub-accounts or make a withdrawal (if allowed). You can select
     one of three AIRs for these options: 3%, 5% or 7%.

 .   Stabilized Variable Payments (Option 5)
     This option provides guaranteed payments for life, a cash value for the
     Annuitant (while alive) and a variable period of time during which annuity
     payments will be made whether or not the Annuitant is still alive. We
     calculate the initial annuity payment amount by multiplying the number of
     units scheduled to be redeemed under a schedule of units by the Unit
     Values determined on the annuitization date. The schedule of units is
     established for each Sub-account you choose on the annuitization date
     based on the applicable benchmark rate, meaning the AIR, and the annuity
     factors. The annuity factors reflect our assumptions regarding the costs
     we expect to bear in guaranteeing payments for the lives of the Annuitant
     and will depend on the benchmark rate, the annuitant's attained age and
     gender (where permitted). Unlike variable payments (described above) where
     each payment can vary based on Sub-account performance, this payment
     option cushions the immediate impact of Sub-account performance by
     adjusting the length of the time during which annuity payments will be
     made whether or not the Annuitant is alive while generally maintaining a
     level annuity payment amount. Sub-account performance that exceeds a
     benchmark rate will generally extend this time period, while Sub-account
     performance that is less than a benchmark rate will generally shorten the
     period. If the period reaches zero and the Annuitant is still alive,
     Annuity Payments continue, however, the annuity payment amount will vary
     depending on Sub-account performance, similar to conventional variable
     payments. The AIR for this option is 4%.

 .   Stabilized Variable Payments with a Guaranteed Minimum (Option 6)
     This option provides guaranteed payments for life in the same manner as
     Stabilized Variable Payments (described above). In addition to the
     stabilization feature, this option also guarantees that variable annuity
     payments will not be less than the initial annuity payment amount
     regardless of Sub-account performance. The AIR for this option is 3%.

ADJUSTABLE ANNUITY PAYMENTS
We may make an adjustable annuity payment option available. Adjustable annuity
payments are calculated similarly to fixed annuity payments except that on
every fifth (5/th/) anniversary of receiving annuity payments, the annuity
payment amount is adjusted upward or downward depending on the rate we are
currently crediting to annuity payments. The adjustment in the annuity payment
amount does not affect the duration of remaining annuity payments, only the
amount of each payment.


                                      58




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Living Benefit Programs


DO YOU OFFER PROGRAMS DESIGNED TO PROVIDE INVESTMENT PROTECTION FOR OWNERS
WHILE THEY ARE ALIVE?
<R>
American Skandia offers different optional benefits, for an additional charge,
that can provide investment protection for Owners while they are alive.
Notwithstanding the additional protection provided under the optional Living
Benefit Programs, the additional cost has the impact of reducing net
performance of the investment options. Each optional benefit offers a distinct
type of guarantee, regardless of the performance of the Sub-accounts, that may
be appropriate for you depending on the manner in which you intend to make use
of your Annuity while you are alive. Depending on which optional benefit you
choose, you can have substantial flexibility to invest in the Sub-accounts
while:
</R>
.   protecting a principal amount from decreases in value as of specified
    future dates due to investment performance;
.   taking withdrawals with a guarantee that you will be able to withdraw not
    less than a principal amount over time;
.   guaranteeing a minimum amount of growth will be applied to your principal,
    if it is to be used as the basis for certain types of lifetime income
    payments; or
.   providing spousal continuation of certain benefits.
   The "living benefits" that American Skandia offers are the Guaranteed Return
Option Plus (GRO Plus), the Guaranteed Minimum Withdrawal Benefit (GMWB), the
Guaranteed Minimum Income Benefit (GMIB), the Lifetime Five Income Benefit and
the Spousal Lifetime Five Income Benefit. Please refer to the benefit
descriptions that follow for a complete description of the terms, conditions
and limitations of each optional benefit. You should consult with your
Financial Professional to determine if any of these optional benefits may be
appropriate for you based on your financial needs. There are many factors to
consider, but we note that among them you may want to evaluate the tax
implications of these different approaches to meeting your needs, both between
these benefits and in comparison to other potential solutions to your needs
(e.g., comparing the tax implications of the withdrawal benefit and annuity
payments).

GUARANTEED RETURN OPTION PLUS/SM /
(GRO PLUS/SM/)

 The Guaranteed Return Option Plus described below is only being offered in
 those jurisdictions where we have received regulatory approval, and will be
 offered subsequently in other jurisdictions when we receive regulatory
 approval in those jurisdictions. Certain terms and conditions may differ
 between jurisdictions once approved. The program can be elected by new
 purchasers on the Issue Date of their Annuity, and can be elected by existing
 Annuity Owners on either the anniversary of the Issue Date of their Annuity or
 on a date other than that anniversary, as described below under "Election of
 the Program". The Guaranteed Return Option Plus is not available if you elect
 the Guaranteed Return Option program (and it is currently active), the
 Guaranteed Minimum Withdrawal Benefit rider, the Guaranteed Minimum Income
 Benefit rider, the Lifetime Five Income Benefit rider, the Spousal Lifetime
 Five Income Benefit rider, the Highest Daily Value Death Benefit, or the
 Dollar Cost Averaging program if it involves transfers out of the Fixed
 Allocations.

   We offer a program that, after a seven-year period following commencement of
the program (we refer to the end of that period and any applicable subsequent
period as the "maturity date") and on each anniversary of the maturity date
thereafter while the program remains in effect, guarantees your Account Value
will not be less than your Account Value on the effective date of your program
(called the "Protected Principal Value"). The program also offers you the
opportunity to elect a second, enhanced guaranteed amount at a later date if
your Account Value has increased, while preserving the guaranteed amount
established on the effective date of your program. The enhanced guaranteed
amount (called the "Enhanced Protected Principal Value") guarantees that, after
a separate period following election of the enhanced guarantee and on each
anniversary thereafter while this enhanced guarantee amount remains in effect,
your Account


                                      59




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Living Benefit Programs continued

Value will not be less than your Account Value on the effective date of your
election of the enhanced guarantee.
   The program monitors your Account Value daily and, if necessary,
systematically transfers amounts between the Sub-accounts you choose and Fixed
Allocations used to support the Protected Principal Value(s). The program may
be appropriate if you wish to protect a principal amount against market
downturns as of a specific date in the future, but also wish to invest in the
Sub-accounts to participate in market performance. There is an additional
charge if you elect the Guaranteed Return Option Plus program.
   The guarantees provided by the program exist only on the applicable maturity
date(s) and on each anniversary of the maturity date(s) thereafter. However,
due to the ongoing monitoring of your Account Value and the transfer of Account
Value between the Sub-accounts and the Fixed Allocations to support our future
guarantees, the program may provide some protection from significant market
losses if you choose to surrender your Annuity or begin receiving annuity
payments prior to a maturity date. For this same reason, the program may limit
your ability to benefit from market increases while it is in effect.

KEY FEATURE -- PROTECTED PRINCIPAL
VALUE/ENHANCED PROTECTED PRINCIPAL VALUE
The Guaranteed Return Option Plus offers a base guarantee as well as the option
of electing an enhanced guarantee at a later date.

.   Base Guarantee: Under the base guarantee, American Skandia guarantees that
    on the maturity date and on each anniversary of the maturity date
    thereafter that the program remains in effect, your Account Value will be
    no less than the Protected Principal Value. On the maturity date and on
    each anniversary after the maturity date that the program remains in
    effect, if your Account Value is below the Protected Principal Value,
    American Skandia will apply additional amounts to your Annuity from its
    general account to increase your Account Value to be equal to the Protected
    Principal Value.

.   Enhanced Guarantee: On any anniversary following commencement of the
    program, you can establish an enhanced guaranteed amount based on your
    current Account Value. Under the enhanced guarantee, American Skandia
    guarantees that at the end of a specified period following the election of
    the enhanced guarantee (also referred to as its "maturity date"), and on
    each anniversary of the maturity date thereafter that the enhanced
    guaranteed amount remains in effect, your Account Value will be no less
    than the Enhanced Protected Principal Value. You can elect an enhanced
    guarantee more than once; however, a subsequent election supersedes the
    prior election of an enhanced guarantee. Election of an enhanced guarantee
    does not impact the base guarantee. In addition, you may elect an "auto
    step-up" feature that will automatically create an enhanced guarantee (or
    increase your enhanced guarantee, if previously elected) on each
    anniversary of the program (and create a new maturity period for the new
    enhanced guarantee) if the Account Value as of that anniversary exceeds the
    Protected Principal Value or Enhanced Protected Principal Value by 7% or
    more. You may also elect to terminate an enhanced guarantee. If you elect
    to terminate the enhanced guarantee, the base guarantee will remain in
    effect. If you have elected the enhanced guarantee, on the guarantee's
    maturity date and on each anniversary of the maturity date thereafter that
    the enhanced guarantee amount remains in effect, if your Account Value is
    below the Enhanced Protected Principal Value, American Skandia will apply
    additional amounts to your Annuity from its general account to increase
    your Account Value to be equal to the Enhanced Protected Principal Value.
   Any amounts added to your Annuity to support our guarantees under the
program will be applied to any Fixed Allocations first and then to the
Sub-accounts pro-rata, based on your most recent allocation instructions in
accordance with the allocation mechanism we use under the program. We will
notify you of any amounts added to your Annuity under the program. If our
assumptions are correct and the operations relating to the administration of
the program work properly, we do not expect that we will need to add additional
amounts to your Annuity. The Protected Principal Value is referred to as the
"Base Guarantee" and the Enhanced Protected Principal Value is referred to as
the "Step-up Guarantee" in the rider we issue for this benefit.

WITHDRAWALS UNDER YOUR ANNUITY
Withdrawals from your Annuity, while the program is in effect, will reduce the
base guarantee under the program as well as any enhanced guarantee. Cumulative
annual withdrawals up to 5% of the Protected Principal Value as of the
effective date of the program (adjusted for any subsequent Purchase Payments
and, with respect to XT6, any Credits applied to such Purchase Payments) will
reduce the applicable guaranteed amount by the


                                      60




AMERICAN SKANDIA ANNUITIES PROSPECTUS

actual amount of the withdrawal (referred to as the "dollar-for-dollar limit").
If the amount withdrawn is greater than the dollar-for-dollar limit, the
portion of the withdrawal equal to the dollar-for-dollar limit will be treated
as described above, and the portion of the withdrawal in excess of the
dollar-for-dollar limit will reduce the base guarantee and the enhanced
guarantee proportionally, according to the formula as described in the rider
for this benefit (see the examples of this calculation below). Withdrawals
other than Systematic Withdrawals will be taken pro-rata from the Sub-accounts
and any Fixed Allocations. Systematic Withdrawals will be taken pro-rata from
the Sub-accounts and any Fixed Allocations up to growth attributable to the
Fixed Allocations and thereafter pro-rata solely from the Sub-accounts.
Withdrawals will be subject to all other provisions of your Annuity, including
any Contingent Deferred Sales Charge and Market Value Adjustment that would
apply.
   Charges for other optional benefits under your Annuity that are deducted as
an annual charge in arrears will not reduce the applicable guaranteed amount
under the Guaranteed Return Option Plus program, however, any partial
withdrawals in payment of charges for the Plus40(TM) Optional Life Insurance
Rider (not currently offered for sale) and any third party investment advisory
service will be treated as withdrawals and will reduce the applicable
guaranteed amount.
<R>
   The following examples of dollar-for-dollar and proportional reductions
assume that: 1.) the Issue Date and the effective date of the GRO Plus/SM/
program are October 13, 2004; 2.) an initial Purchase Payment of $250,000
(includes any Credits under XT6); 3.) a base guarantee amount of $250,000; and
4.) a dollar-for-dollar limit of $12,500 (5% of $250,000). The values set forth
here are purely hypothetical and do not reflect the charge for GRO Plus or
other fees and charges.
</R>

EXAMPLE 1. DOLLAR-FOR-DOLLAR REDUCTION
A $10,000 withdrawal is taken on November 29, 2004 (in the first Annuity Year).
No prior withdrawals have been taken. As the amount withdrawn is less than the
Dollar-for-dollar Limit:
.   The base guarantee amount is reduced by the amount withdrawn (i.e., by
    $10,000, from $250,000 to $240,000).
.   The remaining dollar-for-dollar limit ("Remaining Limit") for the balance
    of the first Annuity Year is also reduced by the amount withdrawn (from
    $12,500 to $2,500).

EXAMPLE 2. DOLLAR-FOR-DOLLAR AND PROPORTIONAL REDUCTIONS
A second $10,000 withdrawal is taken on December 18, 2004 (still within the
first Annuity Year). The Account Value immediately before the withdrawal is
$180,000. As the amount withdrawn exceeds the Remaining Limit of $2,500 from
Example 1:
.   the base guarantee amount is first reduced by the Remaining Limit (from
    $240,000 to $237,500);
.   The result is then further reduced by the ratio of A to B, where:
 .   A is the amount withdrawn less the Remaining Limit ($10,000 - $2,500, or
     $7,500).
 .   B is the Account Value less the Remaining Limit ($180,000 - $2,500, or
     $177,500).
      The resulting base guarantee amount is: $237,500 X
    (1 - $7,500 / $177,500), or $227,464.79.
.   The Remaining Limit is set to zero (0) for the balance of the first Annuity
    Year.

EXAMPLE 3. RESET OF THE DOLLAR-FOR-DOLLAR LIMIT
A $10,000 withdrawal is made on December 19, 2005 (second Annuity Year). The
Remaining Limit has been reset to the dollar-for-dollar limit of $12,500. As
the amount withdrawn is less than the dollar-for-dollar limit:
.   The base guarantee amount is reduced by the amount withdrawn (i.e., reduced
    by $10,000, from $227,464.79 to $217,464.79).
.   The Remaining Limit for the balance of the second Annuity Year is also
    reduced by the amount withdrawn (from $12,500 to $2,500).

KEY FEATURE -- ALLOCATION OF ACCOUNT VALUE
Account Value is transferred to and maintained in Fixed Allocations to the
extent we, in our sole discretion, deem it is necessary to support our
guarantee(s) under the program. We monitor fluctuations in your Account Value
each Valuation Day, as well as the prevailing interest rates on Fixed
Allocations, the remaining duration(s) until the applicable maturity date(s)
and the amount of Account Value allocated to Fixed Allocation(s) relative to a
"reallocation trigger", which determines whether Account Value must be
transferred to or from Fixed Allocation(s). While you are not notified when
your Account Value reaches a reallocation trigger, you will receive a
confirmation statement indicating the transfer of a portion of your Account
Value either to or from Fixed Allocation(s).

.   If your Account Value is greater than or equal to the reallocation trigger,
    your Account Value in the Sub-accounts will remain allocated according to
    your most recent instructions. If a portion of Account Value was previously
    allocated to a Fixed Allocation to support the applicable guaranteed
    amount, all or a portion of those amounts may be transferred from the Fixed
    Allocation and re-allocated to the Sub-accounts pro-rata according to your
    most recent allocation instructions (including the model allocations under
    any asset allocation program you may have


                                      61




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Living Benefit Programs continued

  elected). A Market Value Adjustment will apply when we reallocate Account
   Value from a Fixed Allocation to the Sub-accounts, which may result in a
   decrease or increase in your Account Value.

.   If your Account Value is less than the reallocation trigger, a portion of
    your Account Value in the Sub-accounts will be transferred from the
    Sub-accounts pro-rata according to your allocations to a new Fixed
    Allocation(s) to support the applicable guaranteed amount. The new Fixed
    Allocation(s) will have a Guarantee Period equal to the time remaining
    until the applicable maturity date(s). The Account Value allocated to the
    new Fixed Allocation(s) will be credited with the fixed interest rate(s)
    then being credited to a new Fixed Allocation(s) maturing on the applicable
    maturity date(s) (rounded to the next highest yearly duration). The Account
    Value will remain invested in each applicable Fixed Allocation until the
    applicable maturity date unless, at an earlier date, your Account Value is
    greater than or equal to the reallocation trigger and, therefore, amounts
    can be transferred to the Sub-accounts while maintaining the guaranteed
    protection under the program (as described above).

 If a significant amount of your Account Value is systematically transferred to
 Fixed Allocations to support the Protected Principal Value and/or the Enhanced
 Protected Principal Value during periods of market declines, low interest
 rates, and/or as the program nears its maturity date, less of your Account
 Value may be available to participate in the investment experience of the
 Sub-accounts if there is a subsequent market recovery. During periods closer
 to the maturity date of the base guarantee or any enhanced guarantee, or any
 anniversary of such maturity date(s), a significant portion of your Account
 Value may be allocated to Fixed Allocations to support any applicable
 guaranteed amount(s). If your Account Value is less than the reallocation
 trigger and new Fixed Allocations must be established during periods where the
 interest rate(s) being credited to such Fixed Allocations is low, a larger
 portion of your Account Value may need to be transferred to Fixed Allocations
 to support the applicable guaranteed amount(s), causing less of your Account
 Value to be available to participate in the investment experience of the
 Sub-accounts.

   Separate Fixed Allocations may be established in support of the Protected
Principal Value and the Enhanced Protected Principal Value (if elected). There
may also be circumstances when a Fixed Allocation will be established only in
support of the Protected Principal Value or the Enhanced Protected Principal
Value. If you elect an enhanced guarantee, it is more likely that a portion of
your Account Value may be allocated to Fixed Allocations and will remain
allocated for a longer period of time to support the Enhanced Protected
Principal Value, even during a period of positive market performance and/or
under circumstances where Fixed Allocations would not be necessary to support
the Protected Principal Value. Further, there may be circumstances where Fixed
Allocations in support of the Protected Principal Value or Enhanced Protected
Principal Value are transferred to the Sub-accounts differently than each other
because of the different guarantees they support.
   American Skandia uses an allocation mechanism based on assumptions of
expected and maximum market volatility, interest rates and time left to the
maturity of the program to determine the reallocation trigger. The allocation
mechanism is used to determine the allocation of Account Value between Fixed
Allocations and the Sub-accounts you choose. American Skandia reserves the
right to change the allocation mechanism and the reallocation trigger at its
discretion, subject to regulatory approval where required. Changes to the
allocation mechanism and/or the reallocation trigger may be applied to existing
programs where allowed by law.

ELECTION OF THE PROGRAM
The Guaranteed Return Option Plus program can be elected at the time that you
purchase your Annuity, or on any Valuation Day thereafter (prior to
annuitization). If you elect the program after the Issue Date of your Annuity,
the program will be effective as of the Valuation Day that we receive the
required documentation in good order at our home office, and the guaranteed
amount will be based on your Account Value as of that date. If you previously
elected the Guaranteed Return Option program and wish to elect the Guaranteed
Return Option Plus program, your prior Guaranteed Return Option program will be
terminated. Termination of the Guaranteed Return Option for the purpose of
electing the Guaranteed Return Option Plus will be treated as any other
termination of the Guaranteed Return Option (see below), including the
termination of any guaranteed amount, and application of any applicable Market
Value Adjustment when amounts are transferred to the Sub-accounts as a result
of the termination. The


                                      62




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Guaranteed Return Option Plus program will then be added to your Annuity based
on the current Account Value.

TERMINATION OF THE PROGRAM
You can elect to terminate the enhanced guarantee but maintain the protection
provided by the base guarantee. You also can terminate the Guaranteed Return
Option Plus program entirely. If you terminate the program entirely, you can
subsequently elect to participate in the program again (based on the Account
Value on that date) by furnishing the documentation we require. In a rising
market, you could, for example, terminate the program on a given Valuation Day
and two weeks later reinstate the program with a higher base guarantee (and a
new maturity date). However, your ability to reinstate the program is limited
by the following: (A) in any Annuity Year, we do not permit more than two
program elections (including any election made effective on the Annuity issue
date and any election made by a surviving spouse) and (B) a program
reinstatement cannot be effected on the same business day on which a program
termination was effected. Upon termination, any Account Value in the Fixed
Allocations will be transferred to the Sub-accounts pro-rata based on the
Account Values in such Sub-accounts, or in accordance with any effective asset
allocation program. A Market Value Adjustment will apply.
   The program will terminate automatically upon: (a) the death of the Owner or
the Annuitant (in an entity owned contract); (b) as of the date Account Value
is applied to begin annuity payments; or (c) upon full surrender of the
Annuity. If you elect to terminate the program, the Guaranteed Return Option
Plus will no longer provide any guarantees. The surviving spouse may elect the
benefit at any time, subject to the limitations described above, after the
death of the Annuity Owner. The surviving spouse's election will be effective
on the Valuation Day that we receive the required documentation in good order
at our home office, and the Account Value on that Valuation Day will be the
Protected Principal Value.
   The charge for the Guaranteed Return Option Plus program will no longer be
deducted from your Account Value upon termination of the program.

SPECIAL CONSIDERATIONS UNDER THE GUARANTEED RETURN OPTION PLUS
This program is subject to certain rules and restrictions, including, but not
limited to the following:

.   Upon inception of the program, 100% of your Account Value must be allocated
    to the Sub-accounts. No Fixed Allocations may be in effect as of the date
    that you elect to participate in the program. However, the reallocation
    trigger may transfer Account Value to Fixed Allocations as of the effective
    date of the program under some circumstances.

.   You cannot allocate any portion of Purchase Payments (including any Credits
    applied to such Purchase Payments under XT6) or transfer Account Value to
    or from a Fixed Allocation while participating in the program; however, all
    or a portion of any Purchase Payments (including any Credits applied to
    such Purchase Payments under XT6) may be allocated by us to Fixed
    Allocations to support the amount guaranteed. You cannot participate in any
    dollar cost averaging program that transfers Account Value from a Fixed
    Allocation to a Sub-account.
.   Transfers from Fixed Allocations made as a result of the allocation
    mechanism under the program will be subject to the Market Value Adjustment
    formula under an Annuity; however, the 0.10% liquidity factor in the
    formula will not apply. A Market Value Adjustment may be either positive or
    negative. Transfer amounts will be taken from the most recently established
    Fixed Allocation.
.   Transfers from the Sub-accounts to Fixed Allocations or from Fixed
    Allocations to the Sub-accounts under the program will not count toward the
    maximum number of free transfers allowable under an Annuity.
.   Any amounts applied to your Account Value by American Skandia on the
    maturity date or any anniversary of the maturity date will not be treated
    as "investment in the contract" for income tax purposes.
.   Low interest rates may require allocation to Fixed Allocations even when
    the current Account Value exceeds the guarantee.
.   As the time remaining until the applicable maturity date gradually
    decreases the program will become increasingly sensitive to moves to Fixed
    Allocations.
.   We currently limit the Sub-accounts in which you may allocate Account Value
    if you participate in this program. We reserve the right to transfer any
    Account Value in a prohibited investment option to an eligible investment
    option. Should we prohibit access to any investment option, any transfers
    required to move Account Value to eligible investment options will not be
    counted in determining the number of free transfers during an Annuity Year.
    We may also require that you allocate your Account Value according to an
    asset allocation model.

CHARGES UNDER THE PROGRAM
We deduct a charge equal to 0.25% of the average daily net assets of the
Sub-accounts for participation in the Guaranteed


                                      63




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Living Benefit Programs continued

Return Option Plus program. The annual charge is deducted daily. Account Value
allocated to Fixed Allocations under the program is not subject to the charge.
The charge is deducted to compensate American Skandia for: (a) the risk that
your Account Value on the maturity date is less than the amount guaranteed; and
(b) administration of the program.

GUARANTEED RETURN OPTION (GRO)

 The Guaranteed Return Option described below is offered only in those
 jurisdictions where we have not yet received regulatory approval for the
 Guaranteed Return Option Plus as of the date the election of the option is
 made. Certain terms and conditions may differ between jurisdictions. The
 program can be elected by new purchasers on the Issue Date of their Annuity,
 and can be elected by existing Annuity Owners on either the anniversary of the
 Issue Date of their Annuity or on a date other than that anniversary, as
 described below under "Election of the Program". The Guaranteed Return Option
 is not available if you elect the GRO Plus rider, the Guaranteed Minimum
 Withdrawal Benefit rider, the Guaranteed Minimum Income Benefit rider, the
 Lifetime Five Income Benefit rider, the Spousal Lifetime Five Income Benefit
 rider, the Highest Daily Value Death Benefit, or the Dollar Cost Averaging
 program if it involves transfers out of the Fixed Allocations.

   We offer a program that, after a seven-year period following commencement of
the program (we refer to the end of that period as the "maturity date")
guarantees your Account Value will not be less than your Account Value on the
effective date of your program (called the "Protected Principal Value").
   The program monitors your Account Value daily and, if necessary,
systematically transfers amounts between the Sub-accounts you choose and the
Fixed Allocation used to support the Protected Principal Value. The program may
be appropriate if you wish to protect a principal amount against market
downturns as of a specific date in the future, but also wish to invest in the
Sub-accounts to participate in market performance. There is an additional
charge if you elect the Guaranteed Return Option program.
   The guarantee provided by the program exists only on the applicable maturity
date. However, due to the ongoing monitoring of your Account Value and the
transfer of Account Value between the Sub-accounts and the Fixed Allocation to
support our future guarantee, the program may provide some protection from
signifi-cant market losses if you choose to surrender your Annuity or begin
receiving annuity payments prior to a maturity date. For this same reason, the
program may limit your ability to benefit from market increases while it is in
effect.

KEY FEATURE -- PROTECTED PRINCIPAL VALUE
.   Under the GRO option, American Skandia guarantees that on the maturity
    date, your Account Value will be no less than the Protected Principal
    Value. On the maturity date if your Account Value is below the Protected
    Principal Value, American Skandia will apply additional amounts to your
    Annuity from its general account to increase your Account Value to be equal
    to the Protected Principal Value.
   Any amounts added to your Annuity to support our guarantee under the program
will be applied to the Fixed Allocation first and then to the Sub-accounts pro
rata, based on your most recent allocation instructions in accordance with the
allocation mechanism we use under the program. We will notify you of any
amounts added to your Annuity under the program. If our assumptions are correct
and the operations relating to the administration of the program work properly,
we do not expect that we will need to add additional amounts to an Annuity. The
Protected Principal Value is generally referred to as the "Guaranteed Amount"
in the rider we issue for this benefit.

KEY FEATURE -- ALLOCATION OF ACCOUNT VALUE
Account Value is transferred to and maintained in a Fixed Allocation to the
extent we, in our sole discretion, deem it is necessary to support our
guarantee under the program. We monitor fluctuations in your Account Value each
Valuation Day, as well as the prevailing interest rate on the Fixed Allocation,
the remaining duration until the applicable maturity date and the amount of
Account Value allocated to the Fixed Allocation relative to a "reallocation
trigger", which determines whether Account Value must be transferred to or from
the Fixed Allocation. While you are not notified when your Account Value
reaches a reallocation trigger, you will receive a confirmation statement
indicating the transfer of a portion of your Account Value either to or from
the Fixed Allocation.

.   If your Account Value is greater than or equal to the reallocation trigger,
    your Account Value in the Sub-accounts will remain allocated according to
    your most recent instructions. If a portion of Account Value was previously
    allocated to the Fixed Allocation to support the guaranteed amount, all or
    a portion of those amounts may


                                      64




AMERICAN SKANDIA ANNUITIES PROSPECTUS

  be transferred from the Fixed Allocation and re-allocated to the Sub-accounts
   pro-rata according to your most recent allocation instructions (including
   the model allocations under any asset allocation program you may have
   elected). A Market Value Adjustment will apply when we reallocate Account
   Value from the Fixed Allocation to the Sub-accounts, which may result in a
   decrease or increase in your Account Value.

.   If your Account Value is less than the reallocation trigger, a portion of
    your Account Value in the Sub-accounts will be transferred from your
    Sub-accounts pro-rata according to your allocations to a new Fixed
    Allocation to support the guaranteed amount. The new Fixed Allocation will
    have a Guarantee Period equal to the time remaining until the applicable
    maturity date. The Account Value allocated to the new Fixed Allocation will
    be credited with the fixed interest rate then being credited to a new Fixed
    Allocation maturing on the applicable maturity date (rounded to the next
    highest yearly duration). The Account Value will remain invested in the
    Fixed Allocation until the maturity date unless, at an earlier date, your
    Account Value is greater than or equal to the reallocation trigger and,
    therefore, amounts can be transferred to the Sub-accounts while maintaining
    the guaranteed protection under the program (as described above).

 If a significant amount of your Account Value is systematically transferred to
 the Fixed Allocation to support the Protected Principal Value during periods
 of market declines, low interest rates, and/or as the program nears its
 maturity date, less of your Account Value may be available to participate in
 the investment experience of the Sub-accounts if there is a subsequent market
 recovery. During periods closer to the maturity date of the guarantee a
 significant portion of your Account Value may be allocated to the Fixed
 Allocation to support any applicable guaranteed amount. If your Account Value
 is less than the reallocation trigger and a new Fixed Allocation must be
 established during periods where the interest rate being credited to such
 Fixed Allocation is low, a larger portion of your Account Value may need to be
 transferred to the Fixed Allocation to support the guaranteed amount, causing
 less of your Account Value to be available to participate in the investment
 experience of the Sub-accounts.

   American Skandia uses an allocation mechanism based on assumptions of
expected and maximum market volatility, interest rates and time left to the
maturity of the program to determine the reallocation trigger. The allocation
mechanism is used to determine the allocation of Account Value between the
Fixed Allocation and the Sub-accounts you choose. American Skandia reserves the
right to change the allocation mechanism and the reallocation trigger at its
discretion, subject to regulatory approval where required. Changes to the
allocation mechanism and/or the reallocation trigger may be applied to existing
programs where allowed by law.

ELECTION OF THE PROGRAM
The Guaranteed Return Option can be elected at the time that you purchase your
Annuity, or on any Valuation Day thereafter (prior to annuitization). If you
elect the program after the Issue Date of your Annuity, the program will be
effective as of the Valuation Day that we receive the required documentation in
good order at our home office, and the Protected Principal Value will be based
on your Account Value as of that date.

<R>
RESTART OF THE PROGRAM
Once each Annuity Year you may request to restart the Program. Such a request
is an election by you to terminate the existing Program and start a new one.
Restarts only take effect on anniversaries of the Issue Date. To make such a
request for a restart, you must notify us. If we accept your request, we then
terminate the existing Program as of that valuation period, if it is an
anniversary of the Issue Date, or, if not, as of the next following anniversary
of the Issue Date. The new Program starts at that time. The initial Protected
Principal Value for the new Program is the Account Value as of the effective
date of the new Program. Unless you tell us otherwise, the duration of the new
Program will be the same as that for the existing Program. However, if we do
not then make that duration available, you must elect from those we make
available at that time.
   As part of terminating the existing Program, we transfer any amounts in
Fixed Allocations, subject to a Market Value Adjustment, to the Sub-accounts on
a pro-rata basis. If your entire Account Value was then in Fixed Allocations,
you must first provide us instructions as to how to allocate the transferred
Account Value among the Sub-accounts.
</R>

TERMINATION OF THE PROGRAM
The Annuity Owner also can terminate the Guaranteed Return Option program. Upon
termination, any Account Value in the Fixed Allocation will be transferred to
the Sub-accounts pro-rata based on the Account Values in such Sub-accounts, or
in accordance with any effective asset allocation program. A Market Value
Adjustment will apply.


                                      65




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Living Benefit Programs continued

   The program will terminate automatically upon: (a) the death of the Owner or
the Annuitant (in an entity owned contract); (b) as of the date Account Value
is applied to begin annuity payments; or (c) upon full surrender of your
Annuity. If you elect to terminate the program, the Guaranteed Return Option
will no longer provide any guarantees. If the surviving spouse assumes your
Annuity, he/ she may re-elect the benefit on any anniversary of the Issue Date
of the Annuity or, if the deceased Owner had not previously elected the
benefit, may elect the benefit at any time. The surviving spouse's election
will be effective on the Valuation Day that we receive the required
documentation in good order at our home office, and the Account Value on that
Valuation Day will be the Protected Principal Value.
   The charge for the Guaranteed Return Option program will no longer be
deducted from your Account Value upon termination of the program.

SPECIAL CONSIDERATIONS UNDER THE GUARANTEED RETURN OPTION
This program is subject to certain rules and restrictions, including, but not
limited to the following:
.   Upon inception of the program, 100% of your Account Value must be allocated
    to the Sub-accounts. The Fixed Allocation may not be in effect as of the
    date that you elect to participate in the program. However, the
    reallocation trigger may transfer Account Value to the Fixed Allocation as
    of the effective date of the program under some circumstances.
.   Annuity Owners cannot allocate any portion of Purchase Payments (including
    any Credits applied to such Purchase Payments under XT6) or transfer
    Account Value to or from the Fixed Allocation while participating in the
    program; however, all or a portion of any Purchase Payments (including any
    Credits applied to such Purchase Payments under XT6) may be allocated by us
    to the Fixed Allocation to support the amount guaranteed. You cannot
    participate in any dollar cost averaging program that transfers Account
    Value from a Fixed Allocation to a Sub-account.
.   Transfers from the Fixed Allocation made as a result of the allocation
    mechanism under the program will be subject to the Market Value Adjustment
    formula under an Annuity; however, the 0.10% liquidity factor in the
    formula will not apply. A Market Value Adjustment may be either positive or
    negative. Transfer amounts will be taken from the most recently established
    Fixed Allocation.
.   Transfers from the Sub-accounts to the Fixed Allocation or from the Fixed
    Allocation to the Sub-accounts under the program will not count toward the
    maximum number of free transfers allowable under an Annuity.
.   Any amounts applied to your Account Value by American Skandia on the
    maturity date or any anniversary of the maturity date will not be treated
    as "investment in the contract" for income tax purposes.
.   Low interest rates may require allocation to the Fixed Allocation even when
    the current Account Value exceeds the guarantee.
.   As the time remaining until the applicable maturity date gradually
    decreases the program will become increasingly sensitive to moves to the
    Fixed Allocation.
.   We currently limit the Sub-accounts in which you may allocate Account Value
    if you participate in this program. We reserve the right to transfer any
    Account Value in a prohibited investment option to an eligible investment
    option. Should we prohibit access to any investment option, any transfers
    required to move Account Value to eligible investment options will not be
    counted in determining the number of free transfers during an Annuity Year.
    We may also require that you allocate your Account Value according to an
    asset allocation model.

CHARGES UNDER THE PROGRAM
<R>
We deduct a charge equal to 0.25% of the average daily net assets of the
Sub-accounts for participation in the Guaranteed Return Option program. The
annual charge is deducted daily. Account Value allocated to the Fixed
Allocation under the program is not subject to the charge. The charge is
deducted to compensate American Skandia for: (a) the risk that your Account
Value on the maturity date is less than the amount guaranteed; and
(b) administration of the program.
</R>

 With respect to XT6 and APEX II, effective November 18, 2002, American Skandia
 changed the manner in which the annual charge for the Guaranteed Return Option
 is deducted to the method described above. The annual charge for the
 Guaranteed Return Option for Owners who elected the benefit between
 February 4, 2002 and November 15, 2002 for XT6 and APEX II and subsequent to
 November 15, 2002 in those states where the daily deduction of the charge has
 not been approved, is deducted annually, in arrears, according to the
 prospectus in effect as of the date the program was elected. Owners who
 terminate and then re-elect the Guaranteed Return Option or elect to restart
 the Guaranteed Return Option at any time after November 15, 2002 will be
 subject to the charge method described above.


                                      66




AMERICAN SKANDIA ANNUITIES PROSPECTUS

 Owners who purchased an ASAP III Annuity between April 1, 2003 and
 September 30, 2003 or an ASL II Annuity between February 4, 2002 and
 November 15, 2002 (the "Promotional Period") will not be charged the 0.25%
 annual fee for the Guaranteed Return Option program (or GRO Plus if we are no
 longer offering GRO) if elected at any time while their Annuity is in effect.
.  American Skandia will not charge the 0.25% annual fee for the entire period
   that the program remains in effect, including any extension of the program's
   maturity date resulting from the Owner's election to restart the 7-year
   program duration, regardless of when the Owner elects to participate in the
   Guaranteed Return Option program (or GRO Plus if we are no longer offering
   GRO).
.  Owners who complete the initial 7-year program duration OR terminate the
   program before the program's maturity date, will not be charged the 0.25%
   annual fee for participating in the program if they re-elect the Guaranteed
   Return Option program (or GRO Plus if we are no longer offering GRO) at a
   later date.
.  All other terms and conditions of your Annuity and the Guaranteed Return
   Option program (or GRO Plus if we are no longer offering GRO) apply to
   Owners who qualify for the waiver of the 0.25% annual fee.
.  Owners who purchase an Annuity after the completion of the Promotional
   Period do not qualify for the 0.25% annual fee waiver.

GUARANTEED MINIMUM WITHDRAWAL BENEFIT (GMWB)

<R>
 The Guaranteed Minimum Withdrawal Benefit program described below is only
 being offered in those jurisdictions where we have received regulatory
 approval and will be offered subsequently in other jurisdictions when we
 receive regulatory approval in those jurisdictions. Certain terms and
 conditions may differ between jurisdictions once approved. Currently, the
 program can only be elected by new purchasers on the Issue Date of their
 Annuity. We may offer the program to existing Annuity Owners in the future,
 subject to our eligibility rules and restrictions. The Guaranteed Minimum
 Withdrawal Benefit program is not available if you elect the Guaranteed Return
 Option, Guaranteed Return Option Plus, the Guaranteed Minimum Income Benefit,
 the Lifetime Five Income Benefit or the Spousal Lifetime Five Income Benefit.
</R>
   We offer a program that guarantees your ability to withdraw amounts equal to
an initial principal value (called the "Protected Value"), regardless of the
impact of market performance on your Account Value, subject to our program
rules regarding the timing and amount of withdrawals. The program may be
appropriate if you intend to make periodic withdrawals from your Annuity and
wish to ensure that market performance will not affect your ability to protect
your principal. You are not required to make withdrawals as part of the program
-- the guarantee is not lost if you withdraw less than the maximum allowable
amount of principal each year under the rules of the program. There is an
additional charge if you elect the GMWB program; however, the charge may be
waived under certain circumstances described below.

KEY FEATURE -- PROTECTED VALUE
The Protected Value is the total amount that we guarantee will be available to
you through withdrawals from your Annuity and/or benefit payments, regardless
of the impact of market performance on your Account Value. The Protected Value
is reduced with each withdrawal you make until the Protected Value is reduced
to zero. When the Protected Value is reduced to zero due to your withdrawals,
the GMWB program terminates. Additionally, the Protected Value is used to
determine the maximum annual amount that you can withdraw from your Annuity,
called the Protected Annual Withdrawal Amount, without triggering an


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Living Benefit Programs continued

adjustment in the Protected Value on a proportional basis. The Protected Value
is referred to as the "Benefit Base" in the rider we issue for this benefit.
   The Protected Value is determined as of the date you make your first
withdrawal under your Annuity following your election of the GMWB program. The
initial Protected Value is equal to the greater of (A) the Account Value on the
date you elect the GMWB program, plus any additional Purchase Payments (plus
any Credits applied to such Purchase Payments under XT6) before the date of
your first withdrawal; or (B) the Account Value as of the date of the first
withdrawal from your Annuity. The Protected Value may be enhanced by increases
in your Account Value due to market performance during the period between your
election of the GMWB program and the date of your first withdrawal.
.   If you elect the GMWB program at the time you purchase your Annuity, the
    Account Value will be your initial Purchase Payment (plus any Credits
    applied to such Purchase Payments under XT6).
.   If we offer the GMWB program to existing Annuity Owners, the Account Value
    on the anniversary of the Issue Date of your Annuity following your
    election of the GMWB program will be used to determine the initial
    Protected Value.
.  If you make additional Purchase Payments after your first withdrawal, the
   Protected Value will be increased by the amount of the additional Purchase
   Payment (plus any Credits applied to such Purchase Payments under XT6).
   You may elect to step-up your Protected Value if, due to positive market
performance, your Account Value is greater than the Protected Value. You are
eligible to step-up the Protected Value on or after the 5/th /Annuity
anniversary following the first withdrawal under the GMWB program. The
Protected Value can be stepped up again on or after the 5/th /Annuity
anniversary following the preceding step-up. If you elect to step-up the
Protected Value, you must do so during the 30-day period prior to your
eligibility date. If you elect to step-up the Protected Value under the
program, and on the date you elect to step-up, the charges under the GMWB
program have changed for new purchasers, your program may be subject to the new
charge going forward.
   Upon election of the step-up, we reset the Protected Value to be equal to
the then current Account Value. For example, assume your initial Protected
Value was $100,000 and you have made cumulative withdrawals of $40,000,
reducing the Protected Value to $60,000. On the date you are eligible to
step-up the Protected Value, your Account Value is equal to $75,000. You could
elect to step-up the Protected Value to $75,000 on the date you are eligible.
Upon election of the step-up, we also reset the Protected Annual Withdrawal
Amount (discussed immediately below) to be equal to the greater of (A) the
Protected Annual Withdrawal Amount immediately prior to the reset; and (B) 7%
of the Protected Value immediately after the reset.

KEY FEATURE -- PROTECTED ANNUAL WITHDRAWAL AMOUNT
The initial Protected Annual Withdrawal Amount is equal to 7% of the Protected
Value. Under the GMWB program, if your cumulative withdrawals each Annuity Year
are less than or equal to the Protected Annual Withdrawal Amount, your
Protected Value will be reduced on a "dollar-for-dollar" basis (the Protected
Value is reduced by the actual amount of the withdrawal, including any CDSC or
MVA that may apply). Cumulative withdrawals in any Annuity Year that exceed the
Protected Annual Withdrawal Amount trigger a proportional adjustment to both
the Protected Value and the Protected Annual Withdrawal Amount, as described in
the rider for this benefit (see the examples of this calculation below). The
Protected Annual Withdrawal Amount is referred to as the "Maximum Annual
Benefit" in the rider we issue for this benefit.
   The GMWB program does not affect your ability to make withdrawals under your
Annuity or limit your ability to request withdrawals that exceed the Protected
Annual Withdrawal Amount. You are not required to withdraw all or any portion
of the Protected Annual Withdrawal Amount each Annuity Year.
.   If, cumulatively, you withdraw an amount less than the Protected Annual
    Withdrawal Amount in any Annuity Year, you cannot carry-over the unused
    portion of the Protected Annual Withdrawal Amount to subsequent Annuity
    Years. However, because the Protected Value is only reduced by the actual
    amount of withdrawals you make under these circumstances, any unused
    Protected Annual Withdrawal Amount may extend the period of time until the
    remaining Protected Value is reduced to zero.
.   Additional Purchase Payments will increase the Protected Annual Withdrawal
    Amount by 7% of the applicable Purchase Payment (and any Credits we apply
    to such Purchase Payments under XT6).


                                      68




AMERICAN SKANDIA ANNUITIES PROSPECTUS


.   If the Protected Annual Withdrawal Amount after an adjustment exceeds the
    Protected Value, the Protected Annual Withdrawal Amount will be set equal
    to the Protected Value.
<R>
   The following examples of dollar-for dollar and proportional reductions and
the reset of the Maximum Annual Benefit assume that: 1.) the Issue Date and the
effective date of the GMWB program are October 13, 2005; 2.) an initial
Purchase Payment of $250,000 (includes any Credits in the case of XT6); 3.) a
Protected Value of $250,000; and 4.) a Protected Annual Withdrawal Amount of
$17,500 (7% of $250,000). The values set forth here are purely hypothetical and
do not reflect the charge for GMWB or any other fees and charges.
</R>

EXAMPLE 1. DOLLAR-FOR-DOLLAR REDUCTION
A $10,000 withdrawal is taken on November 13, 2005 (in the first Annuity Year).
No prior withdrawals have been taken. As the amount withdrawn is less than the
Protected Annual Withdrawal Amount:
.   The Protected Value is reduced by the amount withdrawn (i.e., by $10,000,
    from $250,000 to $240,000).
.   The remaining Protected Annual Withdrawal Amount for the balance of the
    first Annuity Year is also reduced by the amount withdrawn (from $17,500 to
    $7,500).

EXAMPLE 2. DOLLAR-FOR-DOLLAR AND PROPORTIONAL REDUCTIONS
<R>
A second $10,000 withdrawal is taken on December 13, 2005 (still within the
first Annuity Year). The Account Value immediately before the withdrawal is
$220,000. As the amount withdrawn exceeds the remaining Protected Annual
Withdrawal Amount of $7,500 from Example 1:
</R>
.   the Protected Value is first reduced by the remaining Protected Annual
    Withdrawal Amount (from $240,000 to $232,500);
.   The result is then further reduced by the ratio of A to B, where:
 .   A is the amount withdrawn less the remaining Protected Annual Withdrawal
     Amount ($10,000 - $7,500, or $2,500).
 .   B is the Account Value less the remaining Protected Annual Withdrawal
     Amount ($220,000 - $7,500, or $212,500).
   The resulting Protected Value is: $232,500 X (1 - $2,500 / $212,500), or
$229,764.71.
.   the Protected Annual Withdrawal Amount is also reduced by the ratio of A to
    B: The resulting Protected Annual Withdrawal Amount is:
   $17,500 X (1 - $2,500 / $212,500), or $17,294.12.
.   The remaining Protected Annual Withdrawal Amount is set to zero (0) for the
    balance of the first Annuity Year.

EXAMPLE 3. RESET OF THE MAXIMUM ANNUAL BENEFIT
<R>
A $10,000 withdrawal is made on October 13, 2006 (second Annuity Year). The
remaining Protected Annual Withdrawal Amount has been reset to the Protected
Annual Withdrawal Amount of $17,294.12 from Example 2. As the amount withdrawn
is less than the remaining Protected Annual Withdrawal Amount:
</R>
.   the Protected Value is reduced by the amount withdrawn (i.e., reduced by
    $10,000, from $229,764.71 to $219,764.71).
.   The remaining Protected Annual Withdrawal Amount for the balance of the
    second Annuity Year is also reduced by the amount withdrawn (from
    $17,294.12 to $7,294.12).

BENEFITS UNDER THE GMWB PROGRAM
.   In addition to any withdrawals you make under the GMWB program, market
    performance may reduce your Account Value. If your Account Value is equal
    to zero, and you have not received all of your Protected Value in the form
    of withdrawals from your Annuity, we will continue to make payments equal
    to the remaining Protected Value in the form of fixed, periodic payments
    until the remainder of the Protected Value is paid, at which time the rider
    terminates. The fixed, periodic payments will each be equal to the
    Protected Annual Withdrawal Amount, except for the last payment which may
    be equal to the remaining Protected Value. We will determine the duration
    for which periodic payments will continue by dividing the Protected Value
    by the Protected Annual Withdrawal Amount. You will not have the right to
    make additional Purchase Payments or receive the remaining Protected Value
    in a lump sum. You can elect the frequency of payments, subject to our
    rules then in effect.
.   If the death benefit under your Annuity becomes payable before you have
    received all of your Protected Value in the form of withdrawals from your
    Annuity, your Beneficiary has the option to elect to receive the remaining
    Protected Value as an alternate death benefit payout in lieu of the amount
    payable under any other death benefit provided under your Annuity. The
    remaining Protected Value will be payable in the form of fixed, periodic
    payments. Your beneficiary can elect the frequency of payments, subject to
    our rules then in effect. We will determine the duration for which periodic
    payments will continue by dividing the Protected Value by the Protected
    Annual Withdrawal Amount. The Protected Value is not


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AMERICAN SKANDIA ANNUITIES PROSPECTUS

Living Benefit Programs continued

  equal to the Account Value for purposes of the Annuity's other death benefit
   options. The GMWB program does not increase or decrease the amount otherwise
   payable under the Annuity's other death benefit options. Generally, the GMWB
   program would be of value to your Beneficiary only when the Protected Value
   at death exceeds any other amount available as a death benefit.
.   If you elect to begin receiving annuity payments before you have received
    all of your Protected Value in the form of withdrawals from your Annuity,
    an additional annuity payment option will be available that makes fixed
    annuity payments for a certain period, determined by dividing the Protected
    Value by the Protected Annual Withdrawal Amount. If you elect to receive
    annuity payments calculated in this manner, the assumed interest rate used
    to calculate such payments will be 0%, which is less than the assumed
    interest rate on other annuity payment options we offer. This 0% assumed
    interest rate results in lower annuity payments than what would have been
    paid if the assumed interest rate was higher than 0%. You can also elect to
    terminate the GMWB program and begin receiving annuity payments based on
    your then current Account Value (not the remaining Protected Value) under
    any of the available annuity payment options.

OTHER IMPORTANT CONSIDERATIONS
.   Withdrawals under the GMWB program are subject to all of the terms and
    conditions of your Annuity, including any CDSC and MVA that may apply.
.   Withdrawals made while the GMWB program is in effect will be treated, for
    tax purposes, in the same way as any other withdrawals under your Annuity.
.   The GMWB program does not directly affect your Annuity's Account Value or
    Surrender Value, but any withdrawal will decrease the Account Value by the
    amount of the withdrawal. If you surrender your Annuity, you will receive
    the current Surrender Value, not the Protected Value.
.   You can make withdrawals from your Annuity while your Account Value is
    greater than zero without purchasing the GMWB program. The GMWB program
    provides a guarantee that if your Account Value declines due to market
    performance, you will be able to receive your Protected Value in the form
    of periodic benefit payments.
.  We currently limit the Sub-accounts in which you may allocate Account Value
   if you participate in this program. We reserve the right to transfer any
   Account Value in a prohibited investment option to an eligible investment
   option. Should we prohibit access to any investment option, any transfers
   required to move Account Value to eligible investment options will not be
   counted in determining the number of free transfers during an Annuity Year.
   We may also require that you allocate your Account Value according to an
   asset allocation model.

ELECTION OF THE PROGRAM
Currently, the GMWB program can only be elected at the time that you purchase
your Annuity. In the future, we may offer existing Annuity Owners the option to
elect the GMWB program after the Issue Date of their Annuity, subject to our
eligibility rules and restrictions. If you elect the GMWB program after the
Issue Date of your Annuity, the program will be effective as of the next
anniversary date. Your Account Value as of such anniversary date will be used
to calculate the initial Protected Value and the initial Protected Annual
Withdrawal Amount.
   We reserve the right to restrict the maximum amount of Protected Value that
may be covered under the GMWB program under this Annuity or any other annuities
that you own that are issued by American Skandia or its affiliated companies.

TERMINATION OF THE PROGRAM
The program terminates automatically when your Protected Value reaches zero
based on your withdrawals. You may terminate the program at any time by
notifying us. If you terminate the program, any guarantee provided by the
benefit will terminate as of the date the termination is effective. The program
terminates upon your surrender of your Annuity, upon due proof of death (unless
your surviving spouse elects to continue your Annuity and the GMWB program or
your Beneficiary elects to receive the amounts payable under the GMWB program
in lieu of the death benefit) or upon your election to begin receiving annuity
payments.
   The charge for the GMWB program will no longer be deducted from your Account
Value upon termination of the program.

CHARGES UNDER THE PROGRAM
Currently, we deduct a charge equal to 0.35% of the average daily net assets of
the Sub-accounts per year to purchase the GMWB program. The annual charge is
deducted daily. Account Value allocated to Fixed Allocations under the program
is not subject to the charge.
.   If, during the seven years following the effective date of the program, you
    do not make any withdrawals, and do not make


                                      70




AMERICAN SKANDIA ANNUITIES PROSPECTUS

  any additional Purchase Payments after a five-year period following the
   effective date of the program, the program will remain in effect; however,
   we will waive the annual charge going forward. If you make an additional
   Purchase Payment following the waiver of the annual charge, we will begin
   charging for the program. After year seven (7) following the effective date
   of the program, withdrawals will not cause a charge to be re-imposed.
.   If you elect to step-up the Protected Value under the program, and on the
    date you elect to step-up, the charges under the program have changed for
    new purchasers, your program may be subject to the new charge level for the
    benefit.

<R>
ADDITIONAL TAX CONSIDERATIONS FOR QUALIFIED CONTRACTS/ARRANGEMENTS
If you purchase an Annuity as an investment vehicle for "quali-fied"
investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or
employer plan under Code Section 401(a), the minimum distribution rules under
the Code require that you begin receiving periodic amounts from your Annuity
beginning after age 70 1/2. For a Tax Sheltered Annuity or a 401(a) plan for
which the participant is not a greater than 5 percent owner of the employer,
this required beginning date can generally be deferred to retirement, if later.
Roth IRAs are not subject to these rules during the owner's lifetime. The
amount required under the Code may exceed the Protected Annual Withdrawal
Amount, which will cause us to recalculate the Protected Value and the
Protected Annual Withdrawal Amount, resulting in a lower amount payable in
future Annuity Years. In addition, the amount and duration of payments under
the annuity payment and death benefit provisions may be adjusted so that the
payments do not trigger any penalty or excise taxes due to tax considerations
such as minimum distribution requirements.
</R>

GUARANTEED MINIMUM INCOME BENEFIT (GMIB)

 The Guaranteed Minimum Income Benefit program described below is only being
 offered in those juris-dictions where we have received regulatory approval,
 and will be offered subsequently in other jurisdictions when we receive
 regulatory approval in those jurisdictions. Certain terms and conditions may
 differ between jurisdictions once approved. Currently, the program can only be
 elected by new purchasers on the Issue Date of their Annuity. We may offer the
 program to existing Annuity Owners in the future, subject to our eligibility
 rules and restrictions. The Guaranteed Minimum Income Benefit program is not
 available if you elect any other optional living benefit.

   We offer a program that, after a seven-year waiting period, guarantees your
ability to begin receiving income from your Annuity in the form of annuity
payments based on a guaranteed minimum value (called the "Protected Income
Value") that increases after the waiting period begins, regardless of the
impact of market performance on your Account Value. The program may be
appropriate for you if you anticipate using your Annuity as a future source of
periodic fixed income payments for the remainder of your life and wish to
ensure that the basis upon which your income payments will be calculated will
achieve at least a minimum amount despite fluctuations in market performance.
There is an additional charge if you elect the GMIB program.

KEY FEATURE -- PROTECTED INCOME VALUE
The Protected Income Value is the minimum amount that we guarantee will be
available (net of any applicable tax charge), after a waiting period of at
least seven years, as a basis to begin receiving fixed annuity payments. The
Protected Income Value is initially established on the effective date of the
GMIB program and is equal to your Account Value on such date. Currently, since
the GMIB program may only be elected at issue, the effective date is the Issue
Date of your Annuity. The Protected Income Value is increased daily based on an
annual growth rate of 5%, subject to the limitations described below. The
Protected Income Value is referred to as the "Protected Value" in the rider we
issue for this benefit. The 5% annual growth rate is referred to as the
"Roll-Up Percentage" in the rider we issue for this benefit.


                                      71




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Living Benefit Programs continued

   The Protected Income Value is subject to a limit of 200% (2X) of the sum of
the Protected Income Value established on the effective date of the GMIB
program, or the effective date of any step-up value, plus any additional
Purchase Payments (and any Credit that is applied to such Purchase Payments in
the case of XT6) made after the waiting period begins ("Maximum Protected
Income Value"), minus the sum of any reductions in the Protected Income Value
due to withdrawals you make from your Annuity after the waiting period begins.
.   Subject to the maximum age/durational limits described immediately below,
    we will no longer increase the Protected Income Value by the 5% annual
    growth rate once you reach the Maximum Protected Income Value. However, we
    will increase the Protected Income Value by the amount of any additional
    Purchase Payments after you reach the Maximum Protected Income Value.
    Further, if you make withdrawals after you reach the Maximum Protected
    Income Value, we will reduce the Protected Income Value and the Maximum
    Protected Income Value by the proportional impact of the withdrawal on your
    Account Value.
.   Subject to the Maximum Protected Income Value, we will no longer increase
    the Protected Income Value by the 5% annual growth rate after the later of
    the anniversary date on or immediately following the Annuitant's 80/th
    /birthday or the 7/th /anniversary of the later of the effective date of
    the GMIB program or the effective date of the most recent step-up. However,
    we will increase the Protected Income Value by the amount of any additional
    Purchase Payments (and any Credit that is applied to such Purchase Payments
    in the case of XT6). Further, if you make withdrawals after the Annuitant
    reaches the maximum age/duration limits, we will reduce the Protected
    Income Value and the Maximum Protected Income Value by the proportional
    impact of the withdrawal on your Account Value.
.   Subject to the Maximum Protected Income Value, if you make an additional
    Purchase Payment, we will increase the Protected Income Value by the amount
    of the Purchase Payment (and any Credit that is applied to such Purchase
    Payment in the case of XT6) and will apply the 5% annual growth rate on the
    new amount from the date the Purchase Payment is applied.
.   As described below, after the waiting period begins, cumulative withdrawals
    each Annuity Year that are up to 5% of the Protected Income Value on the
    prior anniversary of your Annuity will reduce the Protected Income Value by
    the amount of the withdrawal. Cumulative withdrawals each Annuity Year in
    excess of 5% of the Protected Income Value on the prior anniversary of your
    Annuity will reduce the Protected Income Value proportionately. All
    withdrawals after the Maximum Protected Income Value is reached will reduce
    the Protected Income Value proportionately. The 5% annual growth rate will
    be applied to the reduced Protected Income Value from the date of the
    withdrawal.
   Stepping-Up the Protected Income Value -- You may elect to "step-up" or
"reset" your Protected Income Value if your Account Value is greater than the
current Protected Income Value. Upon exercise of the step-up provision, your
initial Protected Income Value will be reset equal to your current Account
Value. From the date that you elect to step-up the Protected Income Value, we
will apply the 5% annual growth rate to the stepped-up Protected Income Value,
as described above. You can exercise the step-up provision twice while the GMIB
program is in effect, and only while the Annuitant is less than age 76.
<R>
.   A new seven-year waiting period will be established upon the effective date
    of your election to step-up the Protected Income Value. You cannot exercise
    your right to begin receiving annuity payments under the GMIB program until
    the end of the new waiting period. In light of this waiting period upon
    resets, it is not recommended that you reset your GMIB if the required
    beginning date under IRS minimum distribution requirements would commence
    during the 7 year waiting period. See "Tax Considerations" section in this
    prospectus for additional information on IRS requirements.
</R>
.   The Maximum Protected Income Value will be reset as of the effective date
    of any step-up. The new Maximum Protected Income Value will be equal to
    200% of the sum of the Protected Income Value as of the effective date of
    the step-up plus any subsequent Purchase Payments (and any Credit that is
    applied to such Purchase Payments in the case of XT6), minus the impact of
    any withdrawals after the date of the step-up.
.   When determining the guaranteed annuity purchase rates for annuity payments
    under the GMIB program, we will apply such rates based on the number of
    years since the most recent step-up.
.   If you elect to step-up the Protected Income Value under the program, and
    on the date you elect to step-up, the charges under the GMIB program have
    changed for new purchasers, your program may be subject to the new charge
    going forward.


                                      72




AMERICAN SKANDIA ANNUITIES PROSPECTUS

.   A step-up will increase the dollar for dollar limit on the anniversary of
    the Issue Date of the Annuity following such step-up.
   Impact of Withdrawals on the Protected Income Value -- Cumulative
withdrawals each Annuity Year up to 5% of the Protected Income Value will
reduce the Protected Income Value on a "dollar-for-dollar" basis (the Protected
Income Value is reduced by the actual amount of the withdrawal). Cumulative
withdrawals in any Annuity Year in excess of 5% of the Protected Income Value
will reduce the Protected Income Value proportionately (see the examples of
this calculation below). The 5% annual withdrawal amount is determined on each
anniversary of the Issue Date (or on the Issue Date for the first Annuity Year)
and applies to any withdrawals during the Annuity Year. This means that the
amount available for withdrawals each Annuity Year on a "dollar-for-dollar"
basis is adjusted on each Annuity anniversary to reflect changes in the
Protected Income Value during the prior Annuity Year.
<R>
   The following examples of dollar-for-dollar and proportional reductions
assume that: 1.) the Issue Date and the effective date of the GMIB program are
October 13, 2005; 2.) an initial Purchase Payment of $250,000 (includes any
Credits in the case of XT6); 3.) an initial Protected Income Value of $250,000;
and 4.) a dollar-for-dollar limit of $12,500 (5% of $250,000). The values set
forth here are purely hypothetical and do not reflect the charge for GMIB or
any other fees and charges.
</R>

EXAMPLE 1. DOLLAR-FOR-DOLLAR REDUCTION
A $10,000 withdrawal is taken on November 13, 2005 (in the first Annuity Year).
No prior withdrawals have been taken. Immediately prior to the withdrawal, the
Protected Income Value is $251,038.10 (the initial value accumulated for 31
days at an annual effective rate of 5%). As the amount withdrawn is less than
the dollar-for-dollar limit:
.   the Protected Income Value is reduced by the amount withdrawn (i.e., by
    $10,000, from $251,038.10 to $241,038.10).
.   The remaining dollar-for-dollar limit ("Remaining Limit") for the balance
    of the first Annuity Year is also reduced by the amount withdrawn (from
    $12,500 to $2,500).

EXAMPLE 2. DOLLAR-FOR-DOLLAR AND PROPORTIONAL REDUCTIONS
A second $10,000 withdrawal is taken on December 13, 2005 (still within the
first Annuity Year). Immediately before the withdrawal, the Account Value is
$220,000 and the Protected Income Value is $242,006.64. As the amount withdrawn
exceeds the Remaining Limit of $2,500 from Example 1:
.   the Protected Income Value is first reduced by the Remaining Limit (from
    $242,006.64 to $239,506.64);
.   The result is then further reduced by the ratio of A to B, where:
 .   A is the amount withdrawn less the Remaining Limit ($10,000 - $2,500, or
     $7,500).
 .   B is the Account Value less the Remaining Limit ($220,000 - $2,500, or
     $217,500).
   The resulting Protected Income Value is: $239,506.64 X (1 - $7,500 /
   $217,500), or $231,247.79.
.   The Remaining Limit is set to zero (0) for the balance of the first Annuity
    Year.

EXAMPLE 3. RESET OF THE DOLLAR-FOR-DOLLAR LIMIT
A $10,000 withdrawal is made on the first anniversary of the Issue Date,
October 13, 2006 (second Annuity Year). Prior to the withdrawal, the Protected
Income Value is $240,838.37. The Remaining Limit is reset to 5% of this amount,
or $12,041.92. As the amount withdrawn is less than the dollar-for-dollar limit:
.   the Protected Income Value is reduced by the amount withdrawn (i.e.,
    reduced by $10,000, from $240,838.37 to $230,838.37).
.   The Remaining Limit for the balance of the second Annuity Year is also
    reduced by the amount withdrawn (from $12,041.92 to $2,041.92).

KEY FEATURE -- GMIB ANNUITY PAYMENTS
You can elect to apply the Protected Income Value to one of the available GMIB
Annuity Payment Options on any anniversary date following the initial waiting
period, or any subsequent waiting period established upon your election to
step-up the Protected Income Value. Once you have completed the waiting period,
you will have a 30-day period each year, prior to the Annuity anniversary,
during which you may elect to begin receiving annuity payments under one of the
available GMIB Annuity Payment Options. You must elect one of the GMIB Annuity
Payment Options by the anniversary of the Annuity's Issue Date on or
immediately following the Annuitant's 95/th /birthday, except for Annuities
used as a funding vehicle for an IRA, SEP IRA or 403(b), in which case you must
elect one of the GMIB Annuity Payment Options by the anniversary of the
Annuity's Issue Date on or immediately following the Annuitant's 92/nd
/birthday.


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Living Benefit Programs continued

   The amount of each GMIB Annuity Payment will be determined based on the age
and, where permitted by law, sex of the Annuitant by applying the Protected
Income Value (net of any applicable tax charge that may be due) to the GMIB
Annuity Payment Option you choose. We use special annuity purchase rates to
calculate the amount of each payment due under the GMIB Annuity Payment
Options. These special rates for the GMIB Annuity Payment Options are
calculated using an assumed interest rate factor that provides for lower growth
in the value applied to produce annuity payments than if you elected an annuity
payment option that is not part of the GMIB program. These special rates also
are calculated using other factors such as "age setbacks" (use of an age lower
than the Annuitant's actual age) that result in lower payments than would
result if you elected an annuity payment option that is not part of the GMIB
program. Use of an age setback entails a longer assumed life for the Annuitant
which in turn results in lower annuity payments.
   On the date that you elect to begin receiving GMIB Annuity Payments, we
guarantee that your payments will be calculated based on your Account Value and
our then current annuity purchase rates if the payment amount calculated on
this basis would be higher than it would be based on the Protected Income Value
and the special GMIB annuity purchase rates.

GMIB ANNUITY PAYMENT OPTION 1 -- PAYMENTS FOR LIFE WITH A CERTAIN PERIOD
Under this option, monthly annuity payments will be made until the death of the
Annuitant. If the Annuitant dies before having received 120 monthly annuity
payments, the remainder of the 120 monthly annuity payments will be made to the
Beneficiary.

GMIB ANNUITY PAYMENT OPTION 2 -- PAYMENTS FOR JOINT LIVES WITH A CERTAIN PERIOD
Under this option, monthly annuity payments will be made until the death of
both the Annuitant and the Joint Annuitant. If the Annuitant and the Joint
Annuitant die before having received 120 monthly annuity payments, the
remainder of the 120 monthly annuity payments will be made to the Beneficiary.
.   If the Annuitant dies first, we will continue to make payments until the
    later of the death of the Joint Annuitant and the end of the period
    certain. However, if the Joint Annuitant is still receiving annuity
    payments following the end of the certain period, we will reduce the amount
    of each subsequent payment to 50% of the original payment amount.
.   If the Joint Annuitant dies first, we will continue to make payments until
    the later of the death of the Annuitant and the end of the period certain.
   You cannot withdraw your Account Value or the Protected Income Value under
either GMIB Annuity Payment Option once annuity payments have begun. We may
make other payout frequencies available, such as quarterly, semi-annually or
annually.

OTHER IMPORTANT CONSIDERATIONS

.   You should note that GMIB is designed to provide a type of insurance that
    serves as a safety net only in the event your Account Value declines
    significantly due to negative investment performance. If your Account Value
    is not significantly affected by negative investment performance, it is
    unlikely that the purchase of the GMIB will result in your receiving larger
    annuity payments than if you had not purchased GMIB. This is because the
    assumptions that we use in computing the GMIB, such as the annuity purchase
    rates, (which include assumptions as to age-setbacks and assumed interest
    rates), are more conservative than the assumptions that we use in computing
    annuity payout options outside of GMIB. Therefore, you may generate higher
    income payments if you were to annuitize a lower Account Value at the
    current annuity purchase rates, than if you were to annuitize under the
    GMIB with a higher Protected Value than your Account Value but, at the
    annuity purchase rates guaranteed under the GMIB. The GMIB program does not
    directly affect an Annuity's Account Value, Surrender Value or the amount
    payable under either the basic Death Benefit provision of the Annuity or
    any optional Death Benefit provision. If you surrender your Annuity, you
    will receive the current Surrender Value, not the Protected Income Value.
    The Protected Income Value is only applicable if you elect to begin
    receiving annuity payments under one of the GMIB annuity options after the
    waiting period.
.   Each Annuity offers other annuity payment options that you can elect which
    do not impose an additional charge, but which do not offer to guarantee a
    minimum value on which to make annuity payments.
.   Where allowed by law, we reserve the right to limit subsequent Purchase
    Payments if we determine, at our sole discretion, that based on the timing
    of your Purchase


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AMERICAN SKANDIA ANNUITIES PROSPECTUS

  Payments and withdrawals, your Protected Income Value is increasing in ways
   we did not intend. In determining whether to limit Purchase Payments, we
   will look at Purchase Payments which are disproportionately larger than your
   initial Purchase Payment and other actions that may artificially increase
   the Protected Income Value.
.   We currently limit the Sub-accounts in which you may allocate Account Value
    if you participate in this program. We reserve the right to transfer any
    Account Value in a prohibited investment option to an eligible investment
    option. Should we prohibit access to any investment option, any transfers
    required to move Account Value to eligible investment options will not be
    counted in determining the number of free transfers during an Annuity Year.
    We may also require that you allocate your Account Value according to an
    asset allocation model.
.   If you change the Annuitant after the effective date of the GMIB program,
    the period of time during which we will apply the 5% annual growth rate may
    be changed based on the age of the new Annuitant. If the new Annuitant
    would not be eligible to elect the GMIB program based on his or her age
    at the time of the change, then the GMIB program will terminate.
.   Annuity payments made under the GMIB program are subject to the same tax
    treatment as any other annuity payment.
.   At the time you elect to begin receiving annuity payments under the GMIB
    program or under any other annuity payment option we make available, the
    protection provided by an Annuity's basic Death Benefit or any optional
    Death Benefit provision you elected will no longer apply.

ELECTION OF THE PROGRAM
Currently, the GMIB program can only be elected at the time that you purchase
your Annuity. The Annuitant must be age 75 or less as of the effective date of
the GMIB program. In the future, we may offer existing Annuity Owners the
option to elect the GMIB program after the Issue Date of their Annuity, subject
to our eligibility rules and restrictions. If you elect the GMIB program after
the Issue Date of your Annuity, the program will be effective as of the date of
election. Your Account Value as of that date will be used to calculate the
Protected Income Value as of the effective date of the program.

TERMINATION OF THE PROGRAM
The GMIB program cannot be terminated by the Owner once elected. The GMIB
program automatically terminates as of the date your Annuity is fully
surrendered, on the date the Death Benefit is payable to your Beneficiary
(unless your surviving spouse elects to continue your Annuity), or on the date
that your Account Value is transferred to begin making annuity payments. The
GMIB program may also be terminated if you designate a new Annuitant who would
not be eligible to elect the GMIB program based on his or her age at the time
of the change.
   Upon termination of the GMIB program we will deduct the charge from your
Account Value for the portion of the Annuity Year since the prior anniversary
of the Annuity's Issue Date (or the Issue Date if in the first Annuity Year).

CHARGES UNDER THE PROGRAM
Currently, we deduct a charge equal to 0.50% per year of the average Protected
Income Value for the period the charge applies. Because the charge is
calculated based on the average Protected Income Value, it does not increase or
decrease based on changes to the Annuity's Account Value due to market
performance. The dollar amount you pay each year will increase in any year the
Protected Income Value increases, and it will decrease in any year the
Protected Income Value decreases due to withdrawal, irrespective of whether
your Account Value increases or decreases.
   The charge is deducted annually in arrears each Annuity Year on the
anniversary of the Issue Date of an Annuity. We deduct the amount of the charge
pro-rata from the Account Value allocated to the Sub-accounts and the Fixed
Allocations. No MVA will apply to Account Value deducted from a Fixed
Allocation. If you surrender your Annuity, begin receiving annuity payments
under the GMIB program or any other annuity payment option we make available
during an Annuity Year, or the GMIB program terminates, we will deduct the
charge for the portion of the Annuity Year since the prior anniversary of the
Annuity's Issue Date (or the Issue Date if in the first Annuity Year).
   No charge applies after the Annuity Date.


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AMERICAN SKANDIA ANNUITIES PROSPECTUS

Living Benefit Programs continued


LIFETIME FIVE INCOME BENEFIT (LIFETIME FIVE)

 The Lifetime Five Income Benefit program described below is only being offered
 in those jurisdictions where we have received regulatory approval and will be
 offered subsequently in other jurisdictions when we receive regulatory
 approval in those jurisdictions. Certain terms and conditions may differ
 between jurisdictions once approved. Lifetime Five can be elected only where
 the Annuitant and the Owner are the same person or, if the Annuity Owner is an
 entity, where there is only one Annuitant. Currently, if you elect Lifetime
 Five and subsequently terminate the benefit, there will be a restriction on
 your ability to re-elect Lifetime Five and Spousal Lifetime Five. The
 Annuitant must be at least 45 years old when the program is elected. The
 Lifetime Five Income Benefit program is not available if you elect any other
 optional living benefit. As long as your Lifetime Five Income Benefit is in
 effect, you must allocate your Account Value in accordance with the then
 permitted and available option(s) with this program.

   We offer a program that guarantees your ability to withdraw amounts equal to
a percentage of an initial principal value (called the "Protected Withdrawal
Value"), regardless of the impact of market performance on your Account Value,
subject to our program rules regarding the timing and amount of withdrawals.
There are two options -- one is designed to provide an annual withdrawal amount
for life (the "Life Income Benefit") and the other is designed to provide a
greater annual withdrawal amount as long as there is Protected Withdrawal Value
(adjusted as described below) (the "Withdrawal Benefit"). If there is no
Protected Withdrawal Value, the withdrawal benefit will be zero. You do not
choose between these two options; each option will continue to be available as
long as your Annuity has an Account Value and the Lifetime Five is in effect.
Certain benefits under Lifetime Five may remain in effect even if the Account
Value of your Annuity is zero. The program may be appropriate if you intend to
make periodic withdrawals from your Annuity and wish to ensure that market
performance will not affect your ability to receive annual payments. You are
not required to make withdrawals as part of the program -- the guarantees are
not lost if you withdraw less than the maximum allowable amount each year under
the rules of the program.

KEY FEATURE -- PROTECTED WITHDRAWAL VALUE
The Protected Withdrawal Value is initially used to determine the amount of
each initial annual payment under the Life Income Benefit and the Withdrawal
Benefit. The initial Protected Withdrawal Value is determined as of the date
you make your first withdrawal under your Annuity following your election of
Lifetime Five. The initial Protected Withdrawal Value is equal to the greater
of (A) the Account Value on the date you elect Lifetime Five growing at 5% per
year from the date of your election of the program, or application of the
Purchase Payment to your Annuity, as applicable, until the date of your first
withdrawal or the 10/th /anniversary of the benefit effective date, if earlier
(B) the Account Value as of the date of the first withdrawal from your Annuity,
prior to the withdrawal, and (C) the highest Account Value on each Annuity
anniversary prior to the first withdrawal or on the first 10 Annuity
anniversaries if earlier than the date of your first withdrawal after the
benefit effective date. With respect to (A) and (C) above each value is
increased by the amount of any subsequent Purchase Payments. With respect to
XT6, Credits are added to Purchase Payments for purposes of calculating the
Protected Withdrawal Value, the Annual Income Amount and the Annual Withdrawal
Amount (see below for a description of Annual Income Amount and Annual
Withdrawal Amount).
.   If you elect the Lifetime Five program at the time you purchase your
    Annuity, the Account Value will be your initial Purchase Payment.
.   For existing Owners who are electing the Lifetime Five benefit, the Account
    Value on the date of your election of the Lifetime Five program will be
    used to determine the initial Protected Withdrawal Value.
.   If you make additional Purchase Payments after your first withdrawal, the
    Protected Withdrawal Value will be increased by the amount of each
    additional Purchase Payment.
   You may elect to step-up your Protected Withdrawal Value if, due to positive
market performance, your Account Value is greater than the Protected Withdrawal
Value. If you elected the Lifetime Five program prior to March 20, 2006 and
that original election remains in effect, then you are eligible to step-up the
Protected Withdrawal Value on or after the 5/th/ anniversary of
the first withdrawal under the Lifetime Five program. Under Annuities with
Lifetime Five elected prior to March 20, 2006, the Protected Withdrawal Value
can be stepped up again on or after the 5th anniversary following the preceding
step-up. If you elected the Lifetime Five program on or after March 20, 2006,


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AMERICAN SKANDIA ANNUITIES PROSPECTUS

then you are eligible to step-up the Protected Withdrawal Value on or after the
3rd anniversary of the first withdrawal under the Lifetime Five program. Under
Annuities with Lifetime Five elected on or after March 20, 2006, the Protected
Withdrawal Value can be stepped up again on or after the 3rd anniversary
following the preceding step-up. In either scenario (i.e., elections before or
after March 20, 2006) if you elect to step-up the Protected Withdrawal Value
under the program, and on the date you elect to step-up, the charges under the
Lifetime Five program have changed for new purchasers, your program may be
subject to the new charge going forward. Upon election of the step-up, we
increase the Protected Withdrawal Value to be equal to the then current Account
Value. For example, assume your initial Protected Withdrawal Value was $100,000
and you have made cumulative withdrawals of $40,000, reducing the Protected
Withdrawal Value to $60,000. On the date you are eligible to step-up the
Protected Withdrawal Value, your Account Value is equal to $75,000. You could
elect to step-up the Protected Withdrawal Value to $75,000 on the date you are
eligible. If your current Annual Income Amount and Annual Withdrawal Amount are
less than they would be if we did not reflect the step-up in Protected
Withdrawal Value, then we will increase these amounts to reflect the step-up as
described below.
<R>
   An optional automatic set-up ("Auto Step-Up") feature is available for this
benefit. This feature may be elected at the time the benefit is elected or at
any time while the benefit is in force. If you elect this feature, the first
Auto Step-Up opportunity will occur on the 3rd Annuity Anniversary (5th Annuity
Anniversary if the benefit was elected prior to March 20, 2006) following the
later of the first withdrawal under the benefit or the prior step-up. At this
time, your Protected Withdrawal Value will only be stepped-up if 5% of the
Account Value exceeds the Annual Income Amount by 5% or more. If 5% of the
Account Value does not exceed the Annual Income Amount by 5% or more, then an
Auto Step-Up opportunity will occur on each successive Annuity Anniversary
until a step-up occurs. Once a step-up occurs, the next Auto Step-Up
opportunity will occur on the 3rd (5th if the benefit was elected prior to
March 20, 2006) Annuity Anniversary following the most recent step-up. If, on
the date that we implement an Auto Step-Up to your Protected Withdrawal Value,
the charge for Lifetime Five has changed for new purchasers, you may be subject
to the new charge at the time of such step-up.
</R>
   The Protected Withdrawal Value is reduced each time a withdrawal is made on
a dollar-for-dollar basis up to 7% per Annuity Year of the Protected Withdrawal
Value and on the greater of a dollar-for-dollar basis or a pro rata basis for
withdrawals in an Annuity Year in excess of that amount until the Protected
Withdrawal Value is reduced to zero. At that point the Annual Withdrawal Amount
will be zero until such time (if any) as the Annuity reflects a Protected
Withdrawal Value (for example, due to a step-up or additional Purchase Payments
being made into the Annuity).

KEY FEATURE -- ANNUAL INCOME AMOUNT UNDER THE LIFE INCOME BENEFIT
The initial Annual Income Amount is equal to 5% of the initial Protected
Withdrawal Value. Under the Lifetime Five program, if your cumulative
withdrawals in an Annuity Year are less than or equal to the Annual Income
Amount, they will not reduce your Annual Income Amount in subsequent Annuity
Years, but any such withdrawals will reduce the Annual Income Amount on a
dollar-for-dollar basis in that Annuity Year. If your cumulative withdrawals
are in excess of the Annual Income Amount ("Excess Income"), your Annual Income
Amount in subsequent years will be reduced (except with regard to required
minimum distributions) by the result of the ratio of the Excess Income to the
Account Value immediately prior to such withdrawal (see examples of this
calculation below). Reductions include the actual amount of the withdrawal,
including any CDSC that may apply. A withdrawal can be considered Excess Income
under the Life Income Benefit even though it does not exceed the Annual
Withdrawal Amount under the Withdrawal Benefit. When you elect a step-up (or an
auto step-up is effected), your Annual Income Amount increases to equal 5% of
your Account Value after the step-up if such amount is greater than your Annual
Income Amount. Your Annual Income Amount also increases if you make additional
Purchase Payments. The amount of the increase is equal to 5% of any additional
Purchase Payments. Any increase will be added to your Annual Income Amount
beginning on the day that the step-up is effective or the Purchase Payment is
made. A determination of whether you have exceeded your Annual Income Amount is
made at the time of each withdrawal; therefore a subsequent increase in the
Annual Income Amount will not offset the effect of a withdrawal that exceeded
the Annual Income Amount at the time the withdrawal was made.


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Living Benefit Programs continued


KEY FEATURE -- ANNUAL WITHDRAWAL AMOUNT UNDER THE WITHDRAWAL BENEFIT
The initial Annual Withdrawal Amount is equal to 7% of the initial Protected
Withdrawal Value. Under the Lifetime Five program, if your cumulative
withdrawals each Annuity Year are less than or equal to the Annual Withdrawal
Amount, your Protected Withdrawal Value will be reduced on a dollar-for-dollar
basis. If your cumulative withdrawals are in excess of the Annual Withdrawal
Amount ("Excess Withdrawal"), your Annual Withdrawal Amount will be reduced
(except with regard to required minimum distributions) by the result of the
ratio of the Excess Withdrawal to the Account Value immediately prior to such
withdrawal (see the examples of this calculation below). Reductions include the
actual amount of the withdrawal, including any CDSC that may apply. When you
elect a step-up (or an auto step-up is effected), your Annual Withdrawal Amount
increases to equal 7% of your Account Value after the step-up if such amount is
greater than your Annual Withdrawal Amount. Your Annual Withdrawal Amount also
increases if you make additional Purchase Payments. The amount of the increase
is equal to 7% of any additional Purchase Payments. A determination of whether
you have exceeded your Annual Withdrawal Amount is made at the time of each
withdrawal; therefore, a subsequent increase in the Annual Withdrawal Amount
will not offset the effect of a withdrawal that exceeded the Annual Withdrawal
Amount at the time the withdrawal was made.
   The Lifetime Five program does not affect your ability to make withdrawals
under your Annuity or limit your ability to request withdrawals that exceed the
Annual Income Amount and the Annual Withdrawal Amount. You are not required to
withdraw all or any portion of the Annual Withdrawal Amount or Annual Income
Amount in each Annuity Year.
.   If, cumulatively, you withdraw an amount less than the Annual Withdrawal
    Amount under the Withdrawal Benefit in any Annuity Year, you cannot
    carry-over the unused portion of the Annual Withdrawal Amount to subsequent
    Annuity Years. However, because the Protected Withdrawal Value is only
    reduced by the actual amount of withdrawals you make under these
    circumstances, any unused Annual Withdrawal Amount may extend the period of
    time until the remaining Protected Withdrawal Value is reduced to zero.
.   If, cumulatively, you withdraw an amount less than the Annual Income Amount
    under the Life Income Benefit in any Annuity Year, you cannot carry-over
    the unused portion of the Annual Income Amount to subsequent Annuity Years.
    However, because the Protected Withdrawal Value is only reduced by the
    actual amount of withdrawals you make under these circumstances, any unused
    Annual Income Amount may extend the period of time until the remaining
    Protected Withdrawal Value is reduced to zero.
<R>
   The following examples of dollar-for-dollar and proportional reductions and
the step-up of the Protected Withdrawal Value, Annual Withdrawal Amount and
Annual Income Amount assume: 1.) the Issue Date and the Effective Date of the
Lifetime Five program are February 1, 2005; 2.) an initial Purchase Payment of
$250,000; 3.) the Account Value on February 1, 2006 is equal to $265,000; 4.)
the first withdrawal occurs on March 1, 2006 when the Account Value is equal to
$263,000; and 5.) the Account Value on February 1, 2010 is equal to $240,000.
The values set forth here are purely hypothetical, and do not reflect the
charge for Lifetime Five or any other fees and charges.
</R>
   The initial Protected Withdrawal Value is calculated as the greatest of (a),
(b) and (c):
  (a)Purchase payment accumulated at 5% per year from February 1, 2005 until
     March 1, 2006 (393 days) = $250,000 X 1.05/(393/365)/ = $263,484.33
  (b)Account Value on March 1, 2006 (the date of the first withdrawal) =
     $263,000
  (c)Account Value on February 1, 2006 (the first Annuity Anniversary) =
     $265,000
   Therefore, the initial Protected Withdrawal Value is equal to $265,000. The
Annual Withdrawal Amount is equal to $18,550 under the Withdrawal Benefit (7%
of $265,000). The Annual Income Amount is equal to $13,250 under the Life
Income Benefit (5% of $265,000).

EXAMPLE 1. DOLLAR-FOR-DOLLAR REDUCTION
If $10,000 was withdrawn (less than both the Annual Income Amount and the
Annual Withdrawal Amount) on March 1, 2006, then the following values would
result:
.   Remaining Annual Withdrawal Amount for current Annuity Year = $18,550 -
    $10,000 = $8,550
   Annual Withdrawal Amount for future Annuity Years remains at $18,550
.   Remaining Annual Income Amount for current Annuity Year = $13,250 - $10,000
    = $3,250 Annual Income Amount for future Annuity Years remains at $13,250
.   Protected Withdrawal Value is reduced by $10,000 from $265,000 to $255,000


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EXAMPLE 2. DOLLAR-FOR-DOLLAR AND PROPORTIONAL REDUCTIONS
  (a)If $15,000 was withdrawn (more than the Annual Income Amount but less than
     the Annual Withdrawal Amount) on March 1, 2006, then the following values
     would result:
.   Remaining Annual Withdrawal Amount for current Annuity Year = $18,550 -
    $15,000 = $3,550 Annual Withdrawal Amount for future Annuity Years remains
    at $18,550
.   Remaining Annual Income Amount for current Annuity Year = $0
   Excess of withdrawal over the Annual Income Amount ($15,000 - $13,250 =
   $1,750) reduces Annual Income Amount for future Annuity Years.
.   Reduction to Annual Income Amount = Excess Income/ Account Value before
    Excess Income X Annual Income Amount = $1,750 / ($263,000 - $13,250) X
    $13,250 = $93 Annual Income Amount for future Annuity Years = $13,250 - $93
    = $13,157
.   Protected Withdrawal Value is reduced by $15,000 from $265,000 to $250,000
(b) If $25,000 was withdrawn (more than both the Annual Income Amount and the
    Annual Withdrawal Amount) on March 1, 2006, then the following values would
    result:
.   Remaining Annual Withdrawal Amount for current Annuity Year = $0 Excess of
    withdrawal over the Annual Withdrawal Amount ($25,000 - $18,550 = $6,450)
    reduces Annual Withdrawal Amount for future Annuity Years.
.   Reduction to Annual Withdrawal Amount = Excess Withdrawal/Account Value
    before Excess Withdrawal X Annual Withdrawal Amount = $6,450 / ($263,000 -
    $18,550) X $18,550 = $489
   Annual Withdrawal Amount for future Annuity Years = $18,550 - $489 = $18,061
.   Remaining Annual Income Amount for current Annuity Year = $0
   Excess of withdrawal over the Annual Income Amount
   ($25,000 - $13,250 = $11,750) reduces Annual Income Amount for future
   Annuity Years.
.   Reduction to Annual Income Amount = Excess Income/ Account Value before
    Excess Income X Annual Income Amount = $11,750 / ($263,000 - $13,250) X
    $13,250 = $623 Annual Income Amount for future Annuity Years =
    $13,250 - $623 = $12,627
.   Protected Withdrawal Value is first reduced by the Annual Withdrawal Amount
    ($18,550) from $265,000 to $246,450. It is further reduced by the greater
    of a dollar-for-dollar reduction or a proportional
    reduction. Dollar-for-dollar reduction = $25,000 - $18,550 = $6,450
.   Proportional reduction = Excess Withdrawal / Account Value before Excess
    Withdrawal X Protected Withdrawal Value = $6,450 / ($263,000 - $18,550) X
    $246,450 = $6,503 Protected Withdrawal Value = $246,450 - max {$6,450,
    $6,503} = $239,947

EXAMPLE 3. STEP-UP OF THE PROTECTED WITHDRAWAL VALUE
<R>
If the Annual Income Amount ($13,250) is withdrawn each year starting on
March 1, 2006 for a period of 3 years, the Protected Withdrawal Value on
February 1, 2010 would be reduced to $225,250 {$265,000 - ($13,250 X 3)}. If a
step-up is elected on February 1, 2010, then the following values would result:
.   Protected Withdrawal Value = Account Value on February 1, 2010 = $280,000
.   Annual Income Amount is equal to the greater of the current Annual Income
    Amount or 5% of the stepped up Protected Withdrawal Value. Current Annual
    Income Amount is $13,250. 5% of the stepped up Protected Withdrawal Value
    is 5% of $280,000, which is $14,000. Therefore, the Annual Income Amount is
    increased to $14,000.
.   If the step-up request on February 1, 2010 was due to the election of the
    auto step-up feature, we would first check to see if an auto step-up should
    occur by checking to see if 5% of the Account Value exceeds the Annual
    Income Amount by 5% or more. 5% of the Account Value is equal to 5% of
    $280,000, which is $14,000. 5% of the Annual Income Amount ($13,250) is
    $662.50, which added to the Annual Income Amount is $13,912.50. Since 5% of
    the Account Value is greater than $13,912.50, the step-up would still occur
    in this scenario, and all of the values would be increased as indicated
    above.
.   Annual Withdrawal Amount is equal to the greater of the current Annual
    Withdrawal Amount or 7% of the stepped up Protected Withdrawal Value.
    Current Annual Withdrawal Amount is $18,550. 7% of the stepped-up Protected
    Withdrawal Value is 7% of $280,000, which is $19,600. Therefore the Annual
    Withdrawal Amount is increased to $19,600.
</R>

BENEFITS UNDER THE LIFETIME FIVE PROGRAM
.   If your Account Value is equal to zero, and the cumulative withdrawals in
    the current Annuity Year are greater than the Annual Withdrawal Amount, the
    Lifetime Five program will terminate. To the extent that your Account Value
    was reduced to zero as a result of cumulative withdrawals that are equal to
    or less than the Annual Income Amount and


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Living Benefit Programs continued

  amounts are still payable under both the Life Income Benefit and the
   Withdrawal Benefit, you will be given the choice of receiving the payments
   under the Life Income Benefit or under the Withdrawal Benefit. Thus, in that
   scenario, the remaining amounts under the Life Income Benefit and the
   Withdrawal Benefit would be payable even though your Account Value was
   reduced to zero. Once you make this election we will make an additional
   payment for that Annuity Year equal to either the remaining Annual Income
   Amount or Annual Withdrawal Amount for the Annuity Year, if any, depending
   on the option you choose. In subsequent Annuity Years we make payments that
   equal either the Annual Income Amount or the Annual Withdrawal Amount as
   described in this Prospectus. You will not be able to change the option
   after your election and no further Purchase Payments will be accepted under
   your Annuity. If you do not make an election, we will pay you annually under
   the Life Income Benefit. To the extent that cumulative withdrawals in the
   current Annuity Year that reduced your Account Value to zero are more than
   the Annual Income Amount but less than or equal to the Annual Withdrawal
   Amount and amounts are still payable under the Withdrawal Benefit, you will
   receive the payments under the Withdrawal Benefit. In the year of a
   withdrawal that reduced your Account Value to zero, we will make an
   additional payment to equal any remaining Annual Withdrawal Amount and make
   payments equal to the Annual Withdrawal Amount in each subsequent year
   (until the Protected Withdrawal Value is depleted). Once your Account Value
   equals zero no further Purchase Payments will be accepted under your Annuity.
.   If annuity payments are to begin under the terms of your Annuity or if you
    decide to begin receiving annuity payments and there is any Annual Income
    Amount due in subsequent Annuity Years or any remaining Protected
    Withdrawal Value, you can elect one of the following three options:
  (1)apply your Account Value to any annuity option available; or
  (2)request that, as of the date annuity payments are to begin, we make
     annuity payments each year equal to the Annual Income Amount. We make such
     annuity payments until the Annuitant's death; or
  (3)request that, as of the date annuity payments are to begin, we pay out any
     remaining Protected Withdrawal Value as annuity payments. Each year such
     annuity payments will equal the Annual Withdrawal Amount or the remaining
     Protected Withdrawal Value if less. We make such annuity payments until
     the earlier of the Annuitant's death or the date the Protected Withdrawal
     Value is depleted.
   We must receive your request in a form acceptable to us at our office.
.   In the absence of an election when mandatory annuity payments are to begin,
    we will make annual annuity payments as a single life fixed annuity with
    five payments certain using the greater of the annuity rates then currently
    available or the annuity rates guaranteed in your Annuity. The amount that
    will be applied to provide such annuity payments will be the greater of:
  (1)the present value of future Annual Income Amount payments. Such present
     value will be calculated using the greater of the single life fixed
     annuity rates then currently available or the single life fixed annuity
     rates guaranteed in your Annuity; and
  (2)the Account Value.
.   If no withdrawal was ever taken, we will determine a Protected Withdrawal
    Value and calculate an Annual Income Amount and an Annual Withdrawal Amount
    as if you made your first withdrawal on the date the annuity payments are
    to begin.

OTHER IMPORTANT CONSIDERATIONS
.   Withdrawals under the Lifetime Five program are subject to all of the terms
    and conditions of your Annuity, including any applicable CDSC.
.   Withdrawals made while the Lifetime Five program is in effect will be
    treated, for tax purposes, in the same way as any other withdrawals under
    your Annuity. The Lifetime Five program does not directly affect your
    Annuity's Account Value or Surrender Value, but any withdrawal will
    decrease the Account Value by the amount of the withdrawal (plus any
    applicable CDSC). If you surrender your Annuity, you will receive the
    current Surrender Value, not the Protected Withdrawal Value.
.   You can make withdrawals from your Annuity while your Account Value is
    greater than zero without purchasing the Lifetime Five program. The
    Lifetime Five program provides a guarantee that if your Account Value
    declines due to market performance, you will be able to receive your
    Protected Withdrawal Value or Annual Income Amount in the form of periodic
    benefit payments.
.   You must allocate your Account Value in accordance with the then permitted
    and available option(s) with this program in order to elect and maintain
    the Lifetime Five program.



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AMERICAN SKANDIA ANNUITIES PROSPECTUS

ELECTION OF THE PROGRAM
The Lifetime Five program can be elected at the time that you purchase your
Annuity. We also offer existing Owners the option to elect the Lifetime Five
program after the Issue Date of their Annuity, subject to our eligibility rules
and restrictions. Your Account Value as the date of election will be used as a
basis to calculate the initial Protected Withdrawal Value, the initial
Protected Annual Withdrawal Amount, and the Annual Income Amount.
<R>
   Currently, if you terminate the program, you will only be permitted to
re-elect Lifetime Five or elect the Spousal Lifetime Five Income Benefit on any
anniversary of the Issue Date that is at least 90 calendar days from the date
the benefit was last terminated.
   If you elected Lifetime Five prior to March 20, 2006, and you terminate the
program, there will be no waiting period before you can re-elect the program or
elect Spousal Lifetime Five provided that you had not previously elected
Lifetime Five after the Issue Date and within the same Annuity Year that you
terminate Lifetime Five. If you had previously elected Lifetime Five after the
Issue Date and within the same Annuity Year that you terminated Lifetime Five,
you will be able to re-elect the program or elect Spousal Lifetime Five on any
date on or after the next anniversary of the Annuity Date. However, once you
choose to re-elect/elect, the waiting period described above will apply to
subsequent re-elections. We reserve the right to limit the re-election/election
frequency in the future. Before making any such change to the
re-election/election frequency, we will provide prior notice to Owners who have
an effective Lifetime Five Income Benefit.
</R>

TERMINATION OF THE PROGRAM
<R>
The program terminates automatically when your Protected Withdrawal Value and
Annual Income Amount equal zero. You may terminate the program at any time by
notifying us. If you terminate the program, any guarantee provided by the
benefit will terminate as of the date the termination is effective and certain
restrictions on re-election of the benefit will apply as described above. The
program terminates upon your surrender of your Annuity, upon the death of the
Annuitant (but your surviving spouse may elect a new Lifetime Five if your
spouse elects the spousal continuance option and your spouse would then be
eligible to elect the benefit if he or she was a new purchaser), upon a change
in ownership of your Annuity that changes the tax identification number of the
Owner, upon change in the Annuitant or upon your election to begin receiving
annuity payments. While you may terminate your program at any time, we may not
terminate the program other than in the circumstances listed above. However, we
may stop offering the program for new elections or re-elections at any time in
the future.
</R>
   The charge for the Lifetime Five program will no longer be deducted from
your Account Value upon termination of the program.

<R>
ADDITIONAL TAX CONSIDERATIONS FOR QUALIFIED CONTRACTS/ARRANGEMENTS
If you purchase an Annuity as an investment vehicle for "qualified"
investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or
employer plan under Code Section 401(a), the minimum distribution rules under
the Code require that you begin receiving periodic amounts from your Annuity
beginning after age 70 1/2. For a Tax Sheltered Annuity or a 401(a) plan for
which the participant is not a greater than 5 percent owner of the employer,
this required beginning date can generally be deferred to retirement, if later.
Roth IRAs are not subject to these rules during the Owner's lifetime. The
amount required under the Code may exceed the Annual Withdrawal Amount and the
Annual Income Amount, which will cause us to increase the Annual Income Amount
and the Annual Withdrawal Amount in any Annuity Year that required minimum
distributions due from your Annuity are greater than such amounts. Any such
payments will reduce your Protected Withdrawal Value. In addition, the amount
and duration of payments under the annuity payment and Death Benefit provisions
may be adjusted so that the payments do not trigger any penalty or excise taxes
due to tax considerations such as minimum distribution requirements.
</R>

SPOUSAL LIFETIME FIVE INCOME BENEFIT (SPOUSAL LIFETIME FIVE)

 The Spousal Lifetime Five program described below is only being offered in
 those jurisdictions where we have received regulatory approval and will be
 offered subsequently in other jurisdictions when we receive regulatory
 approval in those jurisdictions. Certain terms and conditions may differ
 between jurisdictions once approved. Currently, if you elect Spousal Lifetime
 Five and subsequently terminate the benefit, there will be a restriction on
 your ability to re-elect Spousal Lifetime Five and Lifetime Five. We reserve
 the right to further limit the election frequency in the future. Before making
 any such change to the election frequency, we will provide prior notice to
 Owners who have an effective Spousal Lifetime Five Income Benefit. Spousal
 Lifetime Five must be elected based on two Designated Lives, as described
 below. Each Designated Life must be at least 55 years old when the benefit is
 elected. The Spousal Lifetime Five program is not available if you elect any
 other optional living benefit or Death Benefit. As long as your Spousal
 Lifetime Five Income Benefit is in effect, you must allocate your Account
 Value in accordance with the then permitted and available option(s) with this
 program.


                                      81




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Living Benefit Programs continued


   We offer a program that guarantees until the later death of two natural
persons that are each other's spouses at the time of election of Spousal
Lifetime Five and at the first death of one of them (the "Designated Lives",
each a "Designated Life") the ability to withdraw an annual amount ("Spousal
Life Income Benefit") equal to a percentage of an initial principal value (the
"Protected Withdrawal Value") regardless of the impact of market performance on
the Account Value, subject to our program rules regarding the timing and amount
of withdrawals. The Spousal Life Income Benefit may remain in effect even if
the Account Value of the Annuity is zero. The program may be appropriate if you
intend to make periodic withdrawals from your Annuity, wish to ensure that
market performance will not affect your ability to receive annual payments, and
wish either spouse to be able to continue the Spousal Life Income Benefit after
the death of the first. You are not required to make withdrawals as part of the
program -- the guarantees are not lost if you withdraw less than the maximum
allowable amount each year under the rules of the program.

KEY FEATURE -- INITIAL PROTECTED WITHDRAWAL VALUE
The initial Protected Withdrawal Value is used to determine the amount of
initial annual payment under the Spousal Life Income Benefit. The initial
Protected Withdrawal Value is determined as of the date you make your first
withdrawal under the Annuity following your election of Spousal Lifetime Five.
The initial Protected Withdrawal Value is equal to the greater of (A) the
Account Value on the date you elect Spousal Lifetime Five, plus any additional
Purchase Payments growing at 5% per year from the application of the Purchase
Payment to your Annuity, until the date of your first withdrawal or the 10/th
/anniversary of the benefit effective date, if earlier (B) the Account Value as
of the date of the first withdrawal from your Annuity, prior to the withdrawal,
and (C) the highest Account Value on each Annuity anniversary prior to the
first withdrawal or on the first 10 Annuity anniversaries if earlier than the
date of your first withdrawal after the benefit effective date. With respect to
(A) and (C) above, each value is increased by the amount of any subsequent
Purchase Payments. With respect to XT6, Credits are added to Purchase Payments
for purposes of calculating the Protected Withdrawal Value and the Annual
Income Amount (see below for a description of Annual Income Amount).
.   If you elect the Spousal Lifetime Five program at the time you purchase
    your Annuity, the Account Value will be your initial Purchase Payment.
.   For existing Owners who are electing the Spousal Lifetime Five benefit, the
    Account Value on the date of your election of the Spousal Lifetime Five
    program will be used to determine the initial Protected Withdrawal Value.

KEY FEATURE -- ANNUAL INCOME AMOUNT UNDER THE SPOUSAL LIFE INCOME BENEFIT
The initial Annual Income Amount is equal to 5% of the initial Protected
Withdrawal Value. Under the Spousal Lifetime Five program, if your cumulative
withdrawals in an Annuity Year are less than or equal to the Annual Income
Amount, they will not reduce your Annual Income Amount in subsequent Annuity
Years, but any such withdrawals will reduce the Annual Income Amount on a
dollar-for-dollar basis in that Annuity Year. If your cumulative withdrawals
are in excess of the Annual Income Amount ("Excess Income"), your Annual Income
Amount in subsequent years will be reduced (except with regard to required
minimum distributions) by the result of the ratio of the Excess Income to the
Account Value immediately prior to such withdrawal (see examples of this
calculation below). Reductions include the actual amount of the withdrawal,
including any CDSC that may apply.
   You may elect to step-up your Annual Income Amount if, due to positive
market performance, 5% of your Account Value is greater than the Annual Income
Amount. You are eligible to step-up the Annual Income Amount on or after the
3/rd /anniversary of the first withdrawal under the Spousal Lifetime Five
program. The Annual Income Amount can be stepped up again on or after the 3/rd
/anniversary of the preceding step-up. If you elect to step-up the Annual
Income Amount under the program, and on the date you elect to step-up, the
charges under the Spousal Lifetime Five program have changed for new
purchasers, your program may be subject to the new charge at the time of such
step-up. When you elect a step-up, your Annual Income Amount increases to equal
5% of your Account Value after the step-up. Your Annual Income Amount also
increases if you make additional Purchase Payments. The amount of the increase
is equal to 5% of any additional Purchase Payments. Any increase will be added
to your Annual Income Amount beginning on the day that the step-up is effective
or the Purchase Payment is made. A determination of whether you have exceeded
your Annual Income Amount is made at the time of each withdrawal; therefore a
subsequent increase in the Annual Income Amount will not offset the effect of a
withdrawal that exceeded the Annual Income Amount at the time the withdrawal
was made.
<R>
   An optional automatic step-up ("Auto Step-Up") feature is available for this
benefit. This feature may be elected at the time the benefit is elected or at
any time while the benefit is in force. If you elect this feature, the first
Auto Step-Up opportunity will
</R>


                                      82




AMERICAN SKANDIA ANNUITIES PROSPECTUS

<R>
occur on the 3rd Annuity Anniversary following the later of the first
withdrawal under the benefit or the prior step-up. At this time, your Annual
Income Amount will only be stepped-up if 5% of the Account Value exceeds the
Annual Income Amount by 5% or more. If 5% of the Account Value does not exceed
the Annual Income Amount by 5% or more, then an Auto Step-Up opportunity will
occur on each successive Annuity Anniversary until a step-up occurs. Once a
step-up occurs, the next Auto Step-Up opportunity will occur on the 3rd Annuity
Anniversary following the most recent step-up. If, on the date that we
implement an Auto Step-Up to your Annual Income Amount, the charge for Spousal
Lifetime Five has changed for new purchasers, you may be subject to the new
charge at the time of such step-up.
</R>
   The Spousal Lifetime Five program does not affect your ability to make
withdrawals under your Annuity or limit your ability to request withdrawals
that exceed the Annual Income Amount. Under Spousal Lifetime Five, if your
cumulative withdrawals in an Annuity Year are less than or equal to the Annual
Income Amount, they will not reduce your Annual Income Amount in subsequent
Annuity Years, but any such withdrawals will reduce the Annual Income Amount on
a dollar-for-dollar basis in that Annuity Year.
   If, cumulatively, you withdraw an amount less than the Annual Income Amount
under the Spousal Life Income Benefit in any Annuity Year, you cannot
carry-over the unused portion of the Annual Income Amount to subsequent Annuity
Years.
<R>
   The following examples of dollar-for-dollar and proportional reductions and
the step-up of the Annual Income Amount assume: 1.) the Issue Date and the
Effective Date of the Spousal Lifetime Five program are February 1, 2005; 2.)
an initial Purchase Payment of $250,000; 3.) the Account Value on February 1,
2006 is equal to $265,000; 4.) the first withdrawal occurs on March 1, 2006
when the Account Value is equal to $263,000; and 5.) the Account Value on
February 1, 2010 is equal to $280,000. The values set forth here are purely
hypothetical, and do not reflect the charge for the Spousal Lifetime Five or
any other fees and charges.
</R>
   The initial Protected Withdrawal Value is calculated as the greatest of (a),
(b) and (c):
  (a)Purchase payment accumulated at 5% per year from February 1, 2005 until
     March 1, 2006 (393 days) = $250,000 X 1.05/(393/365/) = $263,484.33
  (b)Account Value on March 1, 2006 (the date of the first withdrawal) =
     $263,000
  (c)Account Value on February 1, 2006 (the first Annuity Anniversary) =
     $265,000
   Therefore, the initial Protected Withdrawal Value is equal to $265,000. The
Annual Income Amount is equal to $13,250 under the Spousal Life Income Benefit
(5% of $265,000).

EXAMPLE 1. DOLLAR-FOR-DOLLAR REDUCTION
If $10,000 was withdrawn (less than the Annual Income Amount) on March 1, 2006,
then the following values would result:
.   Remaining Annual Income Amount for current Annuity Year = $13,250 - $10,000
    = $3,250
   Annual Income Amount for future Annuity Years remains at $13,250

EXAMPLE 2. DOLLAR-FOR-DOLLAR AND PROPORTIONAL REDUCTIONS
  (a)If $15,000 was withdrawn (more than the Annual Income Amount) on March 1,
     2006, then the following values would result:
.   Remaining Annual Income Amount for current Annuity Year = $0
   Excess of withdrawal over the Annual Income Amount ($15,000 - $13,250 =
   $1,750) reduces Annual Income Amount for future Annuity Years.
.   Reduction to Annual Income Amount = Excess Income/ Account Value before
    Excess Income X Annual Income Amount = $1,750 / ($263,000 - $13,250) X
    $13,250 = $93 Annual Income Amount for future Annuity Years = $13,250 - $93
    = $13,157

EXAMPLE 3. STEP-UP OF THE ANNUAL INCOME AMOUNT
<R>
If a step-up of the Annual Income Amount is requested on February 1, 2010, the
request will be accepted because 5% of the Account Value, which is $14,000 (5%
of $280,000), is greater than the Annual Income Amount of $13,250. The new
Annual Income Amount will be equal to $14,000. If the step-up request was due
to the election of the auto step-up feature, the step-up would still occur
because 5% of Account Value would exceed the Annual Income Amount by more than
5%. (5% of $13,250 = $662.50; $13,250 + $662.50 = $13,912.50; $14,000
(greater than) $13,912.50).
</R>

BENEFITS UNDER THE SPOUSAL LIFETIME FIVE PROGRAM
.   To the extent that your Account Value was reduced to zero as a result of
    cumulative withdrawals that are equal to or less than the Annual Income
    Amount and amounts are still payable under the Spousal Life Income Benefit,
    we will make an additional payment for that Annuity Year equal to the
    remaining Annual Income Amount for the Annuity Year, if any. Thus, in that
    scenario, the remaining Annual Income Amount would be


                                      83




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Living Benefit Programs continued

  payable even though your Account Value was reduced to zero. In subsequent
   Annuity Years we make payments that equal the Annual Income Amount as
   described in this Prospectus. No further Purchase Payments will be accepted
   under your Annuity. We will make payments until the first of the Designated
   Lives to die, and will continue to make payments until the death of the
   second Designated Life as long as the Designated Lives were spouses at the
   time of the first death. To the extent that cumulative withdrawals in the
   current Annuity Year that reduced your Account Value to zero are more than
   the Annual Income Amount, the Spousal Life Income Benefit terminates and no
   additional payments will be made.
.   If annuity payments are to begin under the terms of your Annuity or if you
    decide to begin receiving annuity payments and there is any Annual Income
    Amount due in subsequent Annuity Years, you can elect one of the following
    two options:
  (1)apply your Account Value to any annuity option available; or
  (2)request that, as of the date annuity payments are to begin, we make
     annuity payments each year equal to the Annual Income Amount. We will make
     payments until the first of the Designated Lives to die, and will continue
     to make payments until the death of the second Designated Life as long as
     the Designated Lives were spouses at the time of the first death.
   We must receive your request in a form acceptable to us at our office.
.   In the absence of an election when mandatory annuity payments are to begin,
    we will make annual annuity payments as a joint and survivor or single (as
    applicable) life fixed annuity with five payments certain using the same
    basis that is used to calculate the greater of the annuity rates then
    currently available or the annuity rates guaranteed in your Annuity. The
    amount that will be applied to provide such annuity payments will be the
    greater of:
  (1)the present value of future Annual Income Amount payments. Such present
     value will be calculated using the same basis that is used to calculate
     the single life fixed annuity rates then currently available or the single
     life fixed annuity rates guaranteed in your Annuity; and
  (2)the Account Value.
.   If no withdrawal was ever taken, we will determine an initial Protected
    Withdrawal Value and calculate an Annual Income Amount as if you made your
    first withdrawal on the date the annuity payments are to begin.

OTHER IMPORTANT CONSIDERATIONS
.   Withdrawals under the Spousal Lifetime Five program are subject to all of
    the terms and conditions of the Annuity, including any CDSC.
.   Withdrawals made while the Spousal Lifetime Five program is in effect will
    be treated, for tax purposes, in the same way as any other withdrawals
    under the Annuity. The Spousal Lifetime Five program does not directly
    affect the Annuity's Account Value or Surrender Value, but any withdrawal
    will decrease the Account Value by the amount of the withdrawal (plus any
    applicable CDSC). If you surrender your Annuity, you will receive the
    current Surrender Value.
.   You can make withdrawals from your Annuity while your Account Value is
    greater than zero without purchasing the Spousal Lifetime Five program. The
    Spousal Lifetime Five program provides a guarantee that if your Account
    Value declines due to market performance, you will be able to receive your
    Annual Income Amount in the form of periodic benefit payments.
.   You must allocate your Account Value in accordance with the then available
    option(s) that we may permit in order to elect and maintain the Spousal
    Lifetime Five program.
.   There may be circumstances where you will continue to be charged the full
    amount for the Spousal Lifetime Five program even when the benefit is only
    providing a guarantee of income based on one life with no survivorship.
<R>
.   In order for the Surviving Designated Life to continue the Spousal Lifetime
    Five program upon the death of an owner, the Designated Life must elect to
    assume ownership of the Annuity under the spousal continuation option. See
    "Spousal Owners/Spousal Beneficiaries", and "Spousal Beneficiary
    --Assumption of Annuity" in this Prospectus.
</R>

ELECTION OF AND DESIGNATIONS UNDER THE PROGRAM
Spousal Lifetime Five can only be elected based on two Designated Lives.
Designated Lives must be natural persons who are each other's spouses at the
time of election of the program and at the death of the first of the Designated
Lives to die. Currently, the program may only be elected where the Owner,
Annuitant and Beneficiary designations are as follows:
.   One Annuity Owner, where the Annuitant and the Owner are the same person
    and the beneficiary is the Owner's spouse.


                                      84




AMERICAN SKANDIA ANNUITIES PROSPECTUS

  The Owner/Annuitant and the beneficiary each must be at least 55 years old at
   the time of election; or
.   Co-Annuity Owners, where the Owners are each other's spouses. The
    Beneficiary designation must be the surviving spouse. The first named Owner
    must be the Annuitant. Both Owners must each be at least 55 years old at
    the time of election.
   No Ownership changes or Annuitant changes will be permitted once this
program is elected. However, if the Annuity is co-owned, the Owner that is not
the Annuitant may be removed without affecting the benefit.
   The Spousal Lifetime Five program can be elected at the time that you
purchase your Annuity. We also offer existing Owners the option to elect the
Spousal Lifetime Five program after the Issue Date of their Annuity, subject to
our eligibility rules and restrictions. Your Account Value as the date of
election will be used as a basis to calculate the initial Protected Withdrawal
Value and the Annual Income Amount.
   Currently, if you terminate the program, you will only be permitted to
re-elect the program or elect the Lifetime Five Income Benefit on any
anniversary of the Issue Date that is at least 90 calendar days from the date
the benefit was last terminated.
   We reserve the right to further limit the election frequency in the future.
Before making any such change to the election frequency, we will provide prior
notice to Owners who have an effective Spousal Lifetime Five Income Benefit.

TERMINATION OF THE PROGRAM
The program terminates automatically when your Annual Income Amount equals
zero. You may terminate the program at any time by notifying us. If you
terminate the program, any guarantee provided by the benefit will terminate as
of the date the termination is effective and certain restrictions on
re-election of the benefit will apply as described above. We reserve the right
to further limit the frequency election in the future. The program terminates
upon your surrender of the Annuity, upon the first Designated Life to die if
the Annuity is not continued, upon the second Designated Life to die or upon
your election to begin receiving annuity payments.
   The charge for the Spousal Lifetime Five program will no longer be deducted
from your Account Value upon termination of the program.

<R>
ADDITIONAL TAX CONSIDERATIONS FOR QUALIFIED CONTRACTS/ARRANGEMENTS
If you purchase an Annuity as an investment vehicle for "qualified"
investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or
employer plan under Code Section 401(a), the minimum distribution rules under
the Code require that you begin receiving periodic amounts from your Annuity
beginning after age 70 1/2. For a Tax Sheltered Annuity or a 401(a) plan for
which the participant is not a greater than 5 percent owner of the employer,
this required beginning date can generally be deferred to retirement, if later.
Roth IRAs are not subject to these rules during the Owner's lifetime. The
amount required under the Code may exceed the Annual Income Amount, which will
cause us to increase the Annual Income Amount in any Annuity Year that required
minimum distributions due from your Annuity are greater than such amounts. In
addition, the amount and duration of payments under the annuity payment and
Death Benefit provisions may be adjusted so that the payments do not trigger
any penalty or excise taxes due to tax considerations such as minimum
distribution requirements.
</R>


                                      85




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Death Benefit


WHAT TRIGGERS THE PAYMENT OF A DEATH BENEFIT?

Each Annuity provides a Death Benefit during its accumulation period. If an
Annuity is owned by one or more natural persons, the Death Benefit is payable
upon the first death of an Owner. If an Annuity is owned by an entity, the
Death Benefit is payable upon the Annuitant's death, if there is no Contingent
Annuitant. If a Contingent Annuitant was designated before the Annuitant's
death and the Annuitant dies, then the Contingent Annuitant becomes the
Annuitant and a Death Benefit will not be paid at that time. The person upon
whose death the Death Benefit is paid is referred to below as the "decedent."

BASIC DEATH BENEFIT
Each Annuity provides a basic Death Benefit at no additional charge. The
Insurance Charge we deduct daily from your Account Value allocated to the
Sub-accounts is used, in part, to pay us for the risk we assume in providing
the basic Death Benefit guarantee under an Annuity. Each Annuity also offers
four different optional Death Benefits that can be purchased for an additional
charge. The additional charge is deducted to compensate American Skandia for
providing increased insurance protection under the optional Death Benefits.
Notwithstanding the additional protection provided under the optional Death
Benefits, the additional cost has the impact of reducing the net performance of
the investment options. In addition, with respect to XT6, under certain
circumstances, your Death Benefit may be reduced by the amount of any Credits
we applied to your Purchase Payments. (See "How are Credits Applied to My
Account Value".)
<R>
   Except as noted below for ASL II, where death occurs after the decedent's
age 85, or older, the basic Death Benefit is the greater of:
</R>
.   The sum of all Purchase Payments less the sum of all proportional
    withdrawals.
<R>
.   The sum of your Account Value in the Sub-accounts and your Interim Value in
    the Fixed Allocations.
   With respect to ASL II, if death occurs after the decedent's age 85 or
older: the Death Benefit is your Account Value in the Sub-accounts and your
Interim Value in the Fixed Allocations.
   With respect to XT6, the basic Death Benefit is reduced by the amount of any
Credits applied within 12 months prior to the date of death.
</R>

   "Proportional withdrawals" are determined by calculating the percentage of
your Account Value that each prior withdrawal represented when withdrawn. For
example, a withdrawal of 50% of Account Value would be considered as a 50%
reduction in Purchase Payments for purposes of calculating the basic Death
Benefit.

OPTIONAL DEATH BENEFITS
<R>
Four optional Death Benefits are offered for purchase with your Annuity to
provide an enhanced level of protection for your beneficiaries.
</R>

 Currently, these benefits are only offered in those jurisdictions where we
 have received regulatory approval and must be elected at the time that you
 purchase your Annuity. We may, at a later date, allow existing Annuity Owners
 to purchase an optional Death Benefit subject to our rules and any changes or
 restrictions in the benefits. Certain terms and conditions may differ between
 jurisdictions once approved and if you purchase your Annuity as part of an
 exchange, replacement or transfer, in whole or in part, from any other Annuity
 we issue. The "Combination 5% Roll-up and Highest Anniversary Value" Death
 Benefit may only be elected individually, and cannot be elected in combination
 with any other optional Death Benefit. If you elect Spousal Lifetime Five, you
 are not permitted to elect an optional Death Benefit. With respect to XT6,
 under certain circumstances, each Optional Death Benefit that you elect may be
 reduced by the amount of Credits applied to your Purchase Payments.

Enhanced Beneficiary Protection Optional Death Benefit
The Enhanced Beneficiary Protection Optional Death Benefit can provide
additional amounts to your Beneficiary that may be used to offset federal and
state taxes payable on any taxable gains in your Annuity at the time of your
death. Whether this benefit is appropriate for you may depend on your
particular circumstances, including other financial resources that may be
available to your Beneficiary to pay taxes on your Annuity should you die
during the accumulation period. No benefit is payable if death occurs on or
after the Annuity Date.


                                      86




AMERICAN SKANDIA ANNUITIES PROSPECTUS

   The Enhanced Beneficiary Protection Optional Death Benefit provides a
benefit that is payable in addition to the basic Death Benefit. If the Annuity
has one Owner, the Owner must be age 75 or less at the time the benefit is
purchased. If an Annuity has joint Owners, the oldest Owner must be age 75 or
less. If an Annuity is owned by an entity, the Annuitant must be age 75 or less.

CALCULATION OF ENHANCED BENEFICIARY PROTECTION OPTIONAL DEATH BENEFIT
If you purchase the Enhanced Beneficiary Protection Optional Death Benefit, the
Death Benefit is calculated as follows:
1. the basic Death Benefit described above;
   PLUS
2. 40% of your "Growth" under an Annuity, as defined below.
   "Growth" means the sum of your Account Value in the Sub-accounts and your
Interim Value in the Fixed Allocations, minus the total of all Purchase
Payments (less the amount of any Credits applied within 12-months prior to the
date of death, with respect to XT6) reduced by the sum of all proportional
withdrawals.

<R>
   "Proportional withdrawals" are determined by calculating the percentage of
your Account Value that each prior withdrawal represented when withdrawn. For
example, a withdrawal of 50% of Account Value would be considered as a 50%
reduction in Purchase Payments.
</R>

 The Enhanced Beneficiary Protection Optional Death Benefit is subject to a
 maximum of 100% of all Purchase Payments applied to an Annuity at least 12
 months prior to the death of the decedent that triggers the payment of the
 Death Benefit.

<R>
 The Enhanced Beneficiary Protection Optional Death Benefit is being offered in
 those jurisdictions where we have received regulatory approval. Certain terms
 and conditions may differ between jurisdictions once approved. With respect to
 XT6, APEX II and ASL II, please see Appendix E for a description of the
 Enhanced Beneficiary Protection Optional Death Benefit offered before
 November 18, 2002 in those jurisdictions where we received regulatory
 approval. Please refer to the section entitled "Tax Considerations" for a
 discussion of special tax considerations for purchasers of this benefit. The
 Enhanced Beneficiary Protection Death Benefit is not available if you elect
 the "Combination 5% Roll-up and Highest Anniversary Value" Death Benefit.
</R>

   See Appendix B for examples of how the Enhanced Beneficiary Protection
Optional Death Benefit is calculated.

Highest Anniversary Value Death Benefit ("HAV")
If an Annuity has one Owner, the Owner must be age 79 or less at the time the
Highest Anniversary Value Optional Death Benefit is purchased. If an Annuity
has joint Owners, the oldest Owner must be age 79 or less. If an Annuity is
owned by an entity, the Annuitant must be age 79 or less.
   Certain of the Portfolios offered as Sub-accounts under the Annuity are not
available if you elect the Highest Anniversary Value Death Benefit. In
addition, we reserve the right to require you to use certain asset allocation
model(s) if you elect this death benefit.


                                      87




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Death Benefit continued


CALCULATION OF HIGHEST ANNIVERSARY VALUE DEATH BENEFIT
The HAV Death Benefit depends on whether death occurs before or after the Death
Benefit Target Date.
   If the Owner dies before the Death Benefit Target Date, the Death Benefit
equals the greater of:
1. the basic Death Benefit described above; and
2. the Highest Anniversary Value as of the Owner's date of death.
   If the Owner dies on or after the Death Benefit Target Date, the Death
Benefit equals the greater of:
1. the basic Death Benefit described above; and
2. the Highest Anniversary Value on the Death Benefit Target Date plus the sum
   of all Purchase Payments (including any Credits applied to such Purchase
   Payments more than twelve (12) months prior to date of death in the case of
   XT6) less the sum of all proportional withdrawals since the Death Benefit
   Target Date.

   The amount determined by this calculation is increased by any Purchase
Payments received after the Owner's date of death and decreased by any
proportional withdrawals since such date.

 The Highest Anniversary Value Death Benefit described above is currently being
 offered in those jurisdictions where we have received regulatory approval.
 Certain terms and conditions may differ between jurisdictions once approved.
 The Highest Anniversary Value Death Benefit is not available if you elect the
 "Combination 5% Roll-up and Highest Anniversary Value" or the "Highest Daily
 Value " Death Benefit. With respect to XT6, APEX II and ASL II, please see
 Appendix E for a description of the Guaranteed Minimum Death Benefit offered
 before November 18, 2002 in those jurisdictions where we received regulatory
 approval.

   Please refer to the definition of Death Benefit Target Date below. This
death benefit may not be an appropriate feature where the Owner's age is near
the age specified in the Death Benefit Target Date. This is because the benefit
may not have the same potential for growth as it otherwise would, since there
will be fewer contract anniversaries before the death benefit target date is
reached. The death benefit target date under this death benefit is earlier than
the death benefit target date under the Combination 5% Roll-up and Highest
Anniversary Value Death Benefit for Owners who are age 76 or older when an
Annuity is issued, which may result in a lower value on the death benefit,
since there will be fewer contract anniversaries before the death benefit
target date is reached.
   See Appendix B for examples of how the Highest Anniversary Value Death
Benefit is calculated.

Combination 5% Roll-up and Highest Anniversary Value Death Benefit
If an Annuity has one Owner, the Owner must be age 79 or less at the time the
Combination 5% Roll-up and HAV Optional Death Benefit is purchased. If an
Annuity has joint Owners, the oldest Owner must be age 79 or less. If the
Annuity is owned by an entity, the Annuitant must be age 79 or less.
   Certain of the Portfolios offered as Sub-accounts under an Annuity are not
available if you elect the Combination 5% Roll-up and HAV Death Benefit. In
addition, we reserve the right to require you to use certain asset allocation
model(s) if you elect this Death Benefit.

Calculation of the Combination 5% Roll-up and Highest Anniversary Value Death
Benefit
The Combination 5% Roll-up and HAV Death Benefit equals the greatest of:
1. the basic Death Benefit described above; and
<R>
2. the Highest Anniversary Value Death Benefit described above; and
</R>
3. 5% Roll-up described below.
   The calculation of the 5% Roll-up depends on whether death occurs before or
after the Death Benefit Target Date.
   If the Owner dies before the Death Benefit Target Date the 5% Roll up is
equal to:
.   all Purchase Payments (including any Credits applied to such Purchase
    Payments more than twelve (12) months prior to date of death in the case of
    XT6) increasing at an annual effective interest rate of 5% starting on the
    date that each Purchase Payment is made and ending on the Owner's date of
    death;
   MINUS
<R>
.   the sum of all withdrawals, dollar for dollar up to 5% of the Death
    Benefit's value as of the prior contract anniversary (or Issue Date if the
    withdrawal is in the first contract year). Any withdrawals in excess of the
    5% dollar for dollar limit are proportional.
</R>
   If the Owner dies on or after the Death Benefit Target Date the 5% Roll-up
is equal to:
.   the 5% Roll-up value as of the Death Benefit Target Date increased by total
    Purchase Payments (including any Credits


                                      88




AMERICAN SKANDIA ANNUITIES PROSPECTUS

  applied to such Purchase Payments more than twelve (12) months prior to date
   of death in the case of XT6) made after the Death Benefit Target Date;
   MINUS
.   the sum of all withdrawals which reduce the 5% Roll-up proportionally.

   In the case of XT6, as indicated, the amounts calculated in Items 1, 2 and 3
above (before, on or after the Death Benefit Target Date) may be reduced by any
Credits under certain circumstances. Please refer to the definitions of Death
Benefit Target Date below. This Death Benefit may not be an appropriate feature
where the Owner's age is near the age specified in the Death Benefit Target
Date. This is because the benefit may not have the same potential for growth as
it otherwise would, since there will be fewer Annuity anniversaries before the
Death Benefit Target Date is reached.

 The "Combination 5% Roll-up and Highest Anniversary Value" Death Benefit
 described above is currently being offered in those jurisdictions where we
 have received regulatory approval. Certain terms and conditions may differ
 between jurisdictions once approved. The "Combination 5% Roll-up and Highest
 Anniversary Value" Death Benefit is not available if you elect any other
 optional Death Benefit. In the case of XT6, APEX II and ASL II, please see
 Appendix E for a description of the Guaranteed Minimum Death Benefit offered
 before November 18, 2002 in those jurisdictions where we received regulatory
 approval.

   See Appendix B for examples of how the Combination 5% Roll-up and Highest
Anniversary Value Death Benefit is calculated.
Key Terms Used with the Highest Anniversary Value Death Benefit and the
Combination 5% Roll-up and Highest Anniversary Value Death Benefit:
.   The Death Benefit Target Date for the Highest Anniversary Value Death
    Benefit is the contract anniversary on or after the 80/th /birthday of the
    current Owner, the oldest of either joint Owner or the Annuitant, if entity
    owned.
.   The Death Benefit Target Date for the Combination 5% Roll-up and HAV Death
    Benefit is the later of the contract anniversary on or after the 80/th
    /birthday of the current Owner, the oldest of either joint Owner or the
    Annuitant, if entity owned, or five years after the Issue Date of an
    Annuity.
.   The Highest Anniversary Value equals the highest of all previous
    "Anniversary Values" less proportional withdrawals since such anniversary
    and plus any Purchase Payments (including any Credits applied to such
    Purchase Payments more than twelve (12) months prior to the date of death
    in the case of XT6) since such anniversary.
.   The Anniversary Value is the Account Value as of each anniversary of the
    Issue Date of an Annuity. The Anniversary Value on the Issue Date is equal
    to your Purchase Payment. (including any Credits applied to such Purchase
    Payments more than twelve (12) months prior to the date of death in the
    case of XT6)
.   Proportional withdrawals are determined by calculating the percentage of
    your Account Value that each prior withdrawal represented when withdrawn.
    Proportional withdrawals result in a reduction to the Highest Anniversary
    Value or 5% Roll-up value by reducing such value in the same proportion as
    the Account Value was reduced by the withdrawal as of the date the
    withdrawal occurred. For example, if your Highest Anniversary Value or 5%
    Roll-up value is $125,000 and you subsequently withdraw $10,000 at a time
    when your Account Value is equal to $100,000 (a 10% reduction), when
    calculating the optional Death Benefit we will reduce your Highest
    Anniversary Value ($ 125,000) by 10% or $12,500.

Highest Daily Value Death Benefit ("HDV")

<R>
 If an Annuity has one Owner, the Owner must be age 79 or less at the time the
 Highest Daily Value Death Benefit is elected. If an Annuity has joint Owners,
 the older Owner must be age 79 or less. If there are joint Owners, death of
 the Owner refers to the first to die of the joint Owners. If an Annuity is
 owned by an entity, the Annuitant must be age 79 or less and death of the
 Owner refers to the death of the Annuitant.
</R>

    If you elect this benefit, you must allocate your Account Value in
 accordance with the then permitted and available option(s) with this benefit.

   The HDV Death Benefit depends on whether death occurs before or after the
Death Benefit Target Date.
   If the Owner dies before the Death Benefit Target Date, the Death Benefit
equals the greater of:


                                      89




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Death Benefit continued


  1. the basic Death Benefit described above (including any Credits applied to
     such Purchase Payments more than twelve (12) months prior to the date of
     death in the case of XT6); and
  2. the HDV as of the Owner's date of death.
   If the Owner dies on or after the Death Benefit Target Date, the Death
Benefit equals the greater of:
  1. the basic Death Benefit described above; and
  2. the HDV on the Death Benefit Target Date plus the sum of all Purchase
     Payments (including any Credits applied to such Purchase Payments more
     than twelve (12) months prior to the date of death in the case of XT6)
     less the sum of all proportional withdrawals since the Death Benefit
     Target Date.
   The amount determined by this calculation is increased by any Purchase
Payments received after the Owner's date of death and decreased by any
proportional withdrawals since such date.

<R>
 The Highest Daily Value Death Benefit described above is currently being
 offered in those jurisdictions where we have received regulatory approval.
 Certain terms and conditions may differ between jurisdictions once approved.
 The Highest Daily Value Death Benefit is not available if you elect the
 Guaranteed Return Option, Guaranteed Return Option Plus, Spousal Lifetime
 Five, the "Combination 5% Roll-up and Highest Anniversary Value" Death
 Benefit, or the Highest Anniversary Value Death Benefit.
</R>

KEY TERMS USED WITH THE HIGHEST DAILY VALUE DEATH BENEFIT:
.   The Death Benefit Target Date for the Highest Daily Value Death Benefit is
    the later of an Annuity anniversary on or after the 80/th /birthday of the
    current Owner, or the older of either the joint Owner or the Annuitant, if
    entity owned, or five years after the Issue Date of an Annuity.
.   The Highest Daily Value equals the highest of all previous "Daily Values"
    less proportional withdrawals since such date and plus any Purchase
    Payments (plus associated Credits in the case of XT6) since such date.
.   The Daily Value is the Account Value as of the end of each Valuation Day.
    The Daily Value on the Issue Date is equal to your Purchase Payment (plus
    associated Credits applied more than twelve (12) months prior to the date
    of death in the case of XT6).
.   Proportional withdrawals are determined by calculating the percentage of
    your Account Value that each prior withdrawal represented when withdrawn.
    Proportional withdrawals result in a reduction to the Highest Daily Value
    by reducing such value in the same proportion as the Account Value was
    reduced by the withdrawal as of the date the withdrawal occurred. For
    example, if your Highest Daily Value is $125,000 and you subsequently
    withdraw $10,000 at a time when your Account Value is equal to $100,000 (a
    10% reduction), when calculating the optional Death Ben-efit we will reduce
    your Highest Daily Value ($125,000) by 10% or $12,500.
Please see Appendix B to this prospectus for a hypothetical example of how the
HDV Death Benefit is calculated.

ANNUITIES WITH JOINT OWNERS
<R>
For Annuities with joint owners, the Death Benefits are calculated as shown
above except that the age of the oldest of the joint Owners is used to
determine the Death Benefit Target Date. NOTE: If you and your spouse own your
Annuity jointly, we will pay the Death Benefit to the Beneficiary. If the sole
primary Beneficiary is the surviving spouse, then the surviving spouse can
elect to assume ownership of your Annuity and continue the Annuity instead of
receiving the Death Benefit.
</R>

ANNUITIES OWNED BY ENTITIES
For Annuities owned by an entity, the Death Benefits are calculated as shown
above except that the age of the Annuitant is used to determine the Death
Benefit Target Date. Payment of the Death Benefit is based on the death of the
Annuitant (or Contingent Annuitant, if applicable).

CAN I TERMINATE THE OPTIONAL DEATH BENEFITS? DO THE OPTIONAL DEATH BENEFITS
TERMINATE UNDER OTHER CIRCUMSTANCES?
You can terminate the Enhanced Beneficiary Protection Death Benefit and the
Highest Anniversary Value Death Benefit at any time. The "Combination 5%
Roll-up and HAV Death Benefit" and the HDV Death Benefit may not be terminated
once elected. The optional Death Benefits will terminate automatically on the
Annuity Date. We may also terminate any optional Death Benefit if necessary to
comply with our interpretation of the Code and applicable regulations.

WHAT ARE THE CHARGES FOR THE OPTIONAL DEATH BENEFITS?
We deduct a charge equal to 0.25% per year of the average daily net assets of
the Sub-accounts for each of the Highest Anniversary Value Death Benefit and
the Enhanced Beneficiary Protection


                                      90




AMERICAN SKANDIA ANNUITIES PROSPECTUS

<R>
Death Benefit and 0.50% per year of the average daily net assets of the
Sub-accounts for each of the "Combination 5% Roll-up and HAV Death Benefit" and
the HDV Death Benefit. We deduct the charge for each of these benefits to
compensate American Skandia for providing increased insurance protection under
the optional Death Benefits. The additional annual charge is deducted daily
against your Account Value allocated to the Sub-accounts.
</R>
   Please refer to the section entitled "Tax Considerations" for additional
considerations in relation to the optional Death Benefit.

AMERICAN SKANDIA'S ANNUITY REWARDS

WHAT IS THE ANNUITY REWARDS BENEFIT IN ASAP III, APEX II AND XT6?
The Annuity Rewards Benefit offers Owners the ability to capture any market
gains since the Issue Date of their Annuity as an enhancement to their current
Death Benefit so their Beneficiaries will not receive less than an Annuity's
value as of the effective date of the benefit. Under the Annuity Rewards
Benefit, American Skandia guarantees that the Death Benefit will not be less
than:
.   your Account Value in the Sub-accounts plus the Interim Value in any Fixed
    Allocations as of the effective date of the benefit
.   MINUS any proportional withdrawals* following the effective date of the
    benefit
.   PLUS any additional Purchase Payments applied to your Annuity following the
    effective date of the benefit.
<R>
   The Annuity Rewards Death Benefit enhancement does not affect the
calculation of the basic Death Benefit or any Optional Death Benefits available
under an Annuity. If the Death Benefit amount payable under your Annuity's
basic Death Benefit or any Optional Death Benefits you purchase is greater than
the enhanced Death Benefit under the Annuity Rewards Benefit on the date the
Death Benefit is calculated, your Beneficiary will receive the higher amount.
</R>
   Annuity Rewards is not available under ASL II.

WHO IS ELIGIBLE FOR THE ANNUITY REWARDS BENEFIT?
Owners can elect the Annuity Rewards Death Benefit enhancement when there is no
longer a CDSC associated with your Annuity. However, the Account Value on the
date that the Annuity Rewards benefit is effective, must be greater than the
amount that would be payable to the Beneficiary under the Death Benefit
(including any amounts payable under any Optional Death Benefit then in
effect). The effective date must occur before annuity payments begin. There can
only be one effective date for the Annuity Rewards Death Benefit enhancement.
There is no additional charge for electing the Annuity Rewards Death Benefit
enhancement.

PAYMENT OF DEATH BENEFITS

PAYMENT OF DEATH BENEFIT TO BENEFICIARY
Except in the case of a spousal assumption as described below, in the event of
your death, the Death Benefit must be distributed:
.   as a lump sum amount at any time within five (5) years of the date of
    death; or
.   as a series of annuity payments not extending beyond the life expectancy of
    the Beneficiary or over the life of the Beneficiary. Payments under this
    option must begin within one year of the date of death.
   Unless you have made an election prior to Death Benefit proceeds becoming
due, a Beneficiary can elect to receive the Death Benefit proceeds as a series
of fixed annuity payments (annuity payment options 1-4) or as a series of
variable annuity payments (annuity payment options 1-3 or 5 and 6). See the
section entitled "What Types of Annuity Options are Available."

SPOUSAL BENEFICIARY -- ASSUMPTION OF ANNUITY
You may name your spouse as your Beneficiary. If you and your spouse own your
Annuity jointly, we assume that the sole primary Beneficiary will be the
surviving spouse unless you elect an alternative Beneficiary designation.
Unless you elect an alternative Beneficiary designation, the spouse Beneficiary
may elect to assume ownership of the Annuity instead of taking the Death
Benefit payment. Any Death Benefit (including any optional Death Benefits) that
would have been payable to the Beneficiary will become the new Account Value as
of the date we receive due proof of death and any required proof of a spousal
relationship. As of the date the assumption is effective, the surviving spouse
will have all the rights and benefits that would be available under the Annuity
to a new purchaser of the same attained age. For purposes of determining any
future Death Benefit for the surviving spouse, the new Account Value will be
considered as the initial Purchase Payment. No CDSC will apply to the new
Account Value. However, any additional Purchase Payments applied after the date
the assumption is effective will be subject to all provisions of the Annuity,
including any CDSC that may apply to the additional Purchase Payments.

* "Proportional withdrawals" are determined by calculating the percentage of
the Account Value that each withdrawal represented when withdrawn. For example,
a withdrawal of 50% of your Account Value would be treated as a 50% reduction
in the amount payable under the Death Benefit.



                                      91




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Death Benefit continued

   See the section entitled "Managing Your Annuity -- Spousal Contingent
Annuitant" for a discussion of the treatment of a spousal Contingent Annuitant
in the case of the death of the Annuitant in an entity owned Annuity.

QUALIFIED BENEFICIARY CONTINUATION OPTION
The Code provides for alternative death benefit payment options when an Annuity
is used as an IRA, 403(b) or other "qualified investment" that requires Minimum
Distributions. Upon the Owner's death under an IRA, 403(b) or other "qualified
investment", a Beneficiary may generally elect to continue the Annuity and
receive Minimum Distributions under the Annuity instead of receiving the death
benefit in a single payment. The available payment options will depend on
whether the Owner died on or before the date he or she was required to begin
receiving Minimum Distributions under the Code and whether the Beneficiary is
the surviving spouse.
.   If death occurs before the date Minimum Distributions must begin under the
    Code, the Death Benefit can be paid out in either a lump sum, within five
    years from the date of death, or over the life or life expectancy of the
    designated Beneficiary (as long as payments begin by December 31/st /of the
    year following the year of death). However, if the spouse is the
    Beneficiary, the Death Benefit can be paid out over the life or life
    expectancy of the spouse with such payments beginning no earlier than
    December 31/st /of the year following the year of death or December 31/st
    /of the year in which the deceased would have reached age 70 1/2, which
    ever is later.
.   If death occurs after the date Minimum Distributions must begin under the
    Code, the Death Benefit must be paid out at least as rapidly as under the
    method then in effect.
   A Beneficiary has the flexibility to take out more each year than required
under the Minimum Distribution rules. Until withdrawn, amounts in an IRA,
403(b) or other "qualified investment" continue to be tax deferred. Amounts
withdrawn each year, including amounts that are required to be withdrawn under
the Minimum Distribution rules, are subject to tax. You may wish to consult a
professional tax advisor for tax advice as to your particular situation.
   For a Roth IRA, if death occurs before the entire interest is distributed,
the Death Benefit must be distributed under the same rules applied to IRAs
where death occurs before the date Minimum Distributions must begin under the
Code.
   Upon election of this Qualified Beneficiary Continuation option:
.   the Owner's Annuity contract will be continued in the Owner's name, for the
    benefit of the Beneficiary.
.   the Beneficiary will be charged at an amount equal to 1.40% daily against
    the average daily assets allocated to the Sub-accounts.
.   the Account Value will be equal to any Death Benefit (including any
    optional Death Benefit) that would have been payable to the Beneficiary if
    they had taken a lump sum distribution.
.   the Beneficiary may request transfers among Sub-accounts, subject to the
    same limitations and restrictions that applied to the Owner, except that
    the Sub-accounts offered will be those offered under the Qualified
    Beneficiary Continuation option at the time the option is elected.
.   the Fixed Allocations will be those offered under the Qualified Beneficiary
    Continuation option at the time the option is elected.
.   no additional Purchase Payments can be applied to the Annuity.
.   other optional Benefits will be those offered under the Qualified
    Beneficiary Continuation option at the time of election.
.   the basic Death Benefit and any optional Death Benefits elected by the
    Owner will no longer apply to the Beneficiary. / /
.   the Beneficiary can request a withdrawal of all or a portion of the Account
    Value at any time without application of any applicable CDSC.
.   upon the death of the Beneficiary, any remaining Account Value will be paid
    in a lump sum to the person(s) named by the Beneficiary.
.   all amounts in the Annuity must be paid out to the Beneficiary according to
    the Minimum Distribution rules described above.
   Your Beneficiary will be provided with a prospectus and settlement option
that will describe this option at the time he or she elects this option. Please
contact American Skandia for additional information on the availability,
restrictions and limitations that will apply to a Beneficiary under the
Qualified Beneficiary Continuation option.

ARE THERE ANY EXCEPTIONS TO THESE RULES FOR PAYING THE DEATH BENEFIT?
Yes, there are exceptions that apply no matter how your Death Benefit is
calculated. There are exceptions to the Death Benefit if


                                      92




AMERICAN SKANDIA ANNUITIES PROSPECTUS

the decedent was not the Owner or Annuitant as of the Issue Date (or within 60
days thereafter) and did not become the Owner or Annuitant due to the prior
Owner's or Annuitant's death. Any Death Benefit (including any optional Death
Benefit) that applies will be suspended for a two-year period from the date he
or she first became Owner or Annuitant. After the two-year suspension period is
completed, the Death Benefit is the same as if this person had been an Owner or
Annuitant on the Issue Date.

WHEN DO YOU DETERMINE THE DEATH BENEFIT?
We determine the amount of the Death Benefit as of the date we receive "due
proof of death", any instructions we require to determine the method of payment
and any other written representations we require to determine the proper
payment of the Death Benefit to all Beneficiaries. "Due proof of death" may
include a certified copy of a death certificate, a certified copy of a decree
of a court of competent jurisdiction as to the finding of death or other
satisfactory proof of death. Upon our receipt of "due proof of death" we
automatically transfer the Death Benefit to the AST Money Market Sub-account
until we further determine the universe of eligible Beneficiaries. Once the
universe of eligible Beneficiaries has been determined each eligible
Beneficiary may allocate his or her eligible share of the Death Benefit to an
eligible annuity payment option.
   Each Beneficiary must make an election as to the method they wish to receive
their portion of the Death Benefit. Absent an election of a Death Benefit
payment method, no Death Benefit can be paid to the Beneficiary. We may require
written acknowledgment of all named Beneficiaries before we can pay the Death
Benefit. During the period from the date of death until we receive all required
paper work, the amount of the Death Benefit may be subject to market
fluctuations.


                                      93




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Valuing Your Investment


HOW IS MY ACCOUNT VALUE DETERMINED?
<R>
During the accumulation period, your Annuity has an Account Value. The Account
Value is determined separately for each Sub-account allocation and for each
Fixed Allocation. The Account Value is the sum of the values of each
Sub-account allocation and the value of each Fixed Allocation. The Account
Value does not reflect any CDSC that may apply to a withdrawal or surrender.
With respect to ASAP III and APEX II, the Account Value includes any Loyalty
Credit we apply. With respect to XT6, the Account Value includes any Credits we
applied to your Purchase Payments which we are entitled to take back under
certain circumstances. When determining the Account Value on a day more than 30
days prior to a Fixed Allocation's Maturity Date, the Account Value may include
any Market Value Adjustment that would apply to a Fixed Allocation (if
withdrawn or transferred) on that day.
</R>

WHAT IS THE SURRENDER VALUE OF MY ANNUITY?
The Surrender Value of your Annuity is the value available to you on any day
during the accumulation period. The Surrender Value is defined under "Glossary
of Terms" above.

HOW AND WHEN DO YOU VALUE THE SUB-ACCOUNTS?
When you allocate Account Value to a Sub-account, you are purchasing units of
the Sub-account. Each Sub-account invests exclusively in shares of an
underlying Portfolio. The value of the Units fluctuates with the market
fluctuations of the Portfolios. The value of the Units also reflects the daily
accrual for the Insurance Charge, the Distribution Charge (if applicable), and
if you elected one or more optional benefits whose annual charge is deducted
daily, the additional charge made for such benefits. There may be several
different Unit Prices for each Sub-account to reflect the Insurance Charge, any
Distribution Charge and the charges for any optional benefits. The Unit Price
for the Units you purchase will be based on the total charges for the benefits
that apply to your Annuity. See the section entitled "What Happens to My Units
When There is a Change in Daily Asset-Based Charges?" for a detailed discussion
of how Units are purchased and redeemed to reflect changes in the daily charges
that apply to your Annuity.
   Each Valuation Day, we determine the price for a Unit of each Sub-account,
called the "Unit Price." The Unit Price is used for determining the value of
transactions involving Units of the Sub-accounts. We determine the number of
Units involved in any transaction by dividing the dollar value of the
transaction by the Unit Price of the Sub-account as of the Valuation Day.

EXAMPLE
Assume you allocate $5,000 to a Sub-account. On the Valuation Day you make the
allocation, the Unit Price is $14.83. Your $5,000 buys 337.154 Units of the
Sub-account. Assume that later, you wish to transfer $3,000 of your Account
Value out of that Sub-account and into another Sub-account. On the Valuation
Day you request the transfer, the Unit Price of the original Sub-account has
increased to $16.79. To transfer $3,000, we sell 178.677 Units at the current
Unit Price, leaving you 158.477 Units. We then buy $3,000 of Units of the new
Sub-account at the Unit Price of $17.83. You would then have 168.255 Units of
the new Sub-account.

HOW DO YOU VALUE FIXED ALLOCATIONS?
During the Guarantee Period, we use the concept of an Interim Value. The
Interim Value can be calculated on any day and is equal to the initial value
allocated to a Fixed Allocation plus all interest credited to a Fixed
Allocation as of the date calculated. The Interim Value does not include the
impact of any Market Value Adjustment. If you made any transfers or withdrawals
from a Fixed Allocation, the Interim Value will reflect the withdrawal of those
amounts and any interest credited to those amounts before they were withdrawn.
To determine the Account Value of a Fixed Allocation on any day more than 30
days prior to its Maturity Date, we multiply the Account Value of the Fixed
Allocation times the Market Value Adjustment factor.

WHEN DO YOU PROCESS AND VALUE TRANSACTIONS?
American Skandia is generally open to process financial transactions on those
days that the New York Stock Exchange (NYSE) is open for trading. There may be
circumstances where the NYSE does not open on a regularly scheduled date or
time or closes at an earlier time than scheduled (normally 4:00 p.m. EST).
Financial transactions requested before the close of the NYSE which meet our
requirements will be processed according to the value next determined following
the close of business. Financial transactions requested on a non-business day
or after the close of the NYSE will be processed based on the value next
computed on the next Valuation Day. There may be circumstances when the opening
or closing time of the NYSE is different than other major stock exchanges, such
as NASDAQ or the American Stock Exchange. Under such circumstances, the closing
time of the NYSE will be used when valuing and processing transactions.


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   There may be circumstances where the NYSE is open, however, due to inclement
weather, natural disaster or other circumstances beyond our control, our
offices may be closed or our business processing capabilities may be
restricted. Under those circumstances, your Account Value may fluctuate based
on changes in the Unit Values, but you may not be able to transfer Account
Value, or make a purchase or redemption request.
   The NYSE is closed on the following nationally recognized holidays: New
Year's Day, Martin Luther King, Jr. Day, Wash-ington's Birthday, Good Friday,
Memorial Day, Independence Day, Labor Day, Thanksgiving, and Christmas. On
those dates, we will not process any financial transactions involving purchase
or redemption orders.
   American Skandia will also not process financial transactions involving
purchase or redemption orders or transfers on any day that:
.   trading on the NYSE is restricted;
.   an emergency exists making redemption or valuation of securities held in
    the separate account impractical; or
.   the SEC, by order, permits the suspension or postponement for the
    protection of security holders.

   Initial Purchase Payments: We are required to allocate your initial Purchase
Payment to the Sub-accounts within two (2) business days after we receive all
of our requirements at our office to issue an Annuity. If we do not have all
the required information to allow us to issue your Annuity, we may retain the
Purchase Payment while we try to reach you or your representative to obtain all
of our requirements. If we are unable to obtain all of our required information
within five (5) business days, we are required to return the Purchase Payment
to you at that time, unless you specifically consent to our retaining the
Purchase Payment (and any associated Credit with respect to XT6) while we
gather the required information. Once we obtain the required information, we
will invest the Purchase Payment and issue an Annuity within two (2) business
days. During any period that we are trying to obtain the required information,
your money is not invested.

<R>
   Additional Purchase Payments: We will apply any additional Purchase Payments
(and any associated Credit with respect to XT6) on the Valuation Day that we
receive the Purchase Payment at our office with satisfactory allocation
instructions.

   Scheduled Transactions: Scheduled transactions include transfers made in
connection with dollar cost averaging, the asset allocation program,
auto-rebalancing, systematic withdrawals, systematic investments, required
minimum distributions, substantially equal periodic payments under section
72(t) of the Code, or annuity payments. Scheduled transactions are processed
and valued as of the date they are scheduled, unless the scheduled day is not a
business day. In that case, the transaction will be processed and valued on the
next business day, unless (with respect to required minimum distributions,
substantially equal periodic payments under Section 72(t) of the Code,
systematic withdrawals and annuity payments only), the next business day falls
in the subsequent calendar year, in which case the transaction will be
processed and valued on the prior business day.
</R>

   Unscheduled Transactions: "Unscheduled" transactions include any other
non-scheduled transfers and requests for Partial Withdrawals or Free
Withdrawals or Surrenders. Unscheduled transactions are processed and valued as
of the Valuation Day we receive the request at our Office and have all of the
required information.

<R>
   Death Benefits: Death Benefit claims require our review and evaluation
before processing. We price such transactions as of the date we receive at our
office all supporting documentation we require for such transactions and that
are satisfactory to us.
</R>

   Medically-related Surrenders & Death Benefits: Medically-related surrender
requests and Death Benefit claims require our review and evaluation before
processing. We price such transactions as of the date we receive at our Office
all supporting documentation we require for such transactions and that are
satisfactory to us.

   Transactions in ProFunds VP Sub-accounts: Generally, purchase or redemption
orders or transfer requests must be received by us by no later than the close
of the NYSE to be processed on the current Valuation Day. However, any purchase
or redemption order or transfer request involving the ProFunds VP Sub-accounts
must be received by us no later than one hour prior to any announced closing of
the applicable securities exchange (generally, 3:00 p.m. Eastern time) to be
processed on the current Valuation Day. The "cut-off" time for such financial
transactions involving a ProFunds VP Sub-account will be extended to /1//\\2
\\hour prior to any announced closing (generally, 3:30 p.m. Eastern time) for
transactions submitted electronically through American Skandia's Internet
website (www.americans-kandia.prudential.com). You cannot request a transaction
involving the purchase, redemption or transfer of units in one of the ProFunds
VP Sub-accounts between the applicable "cut-off" time and 4:00 p.m.


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Valuing Your Investment continued

Transactions received after 4:00 p.m. will be treated as received by us on the
next Valuation Day.

WHAT HAPPENS TO MY UNITS WHEN THERE IS A CHANGE IN DAILY ASSET-BASED CHARGES?
Distribution Charge Applicable to ASAP III and XT6: At the end of the Period
during which the Distribution Charge applies, your Annuity will become subject
to a different daily asset-based charge. We will process a transaction where
your Account Value allocated to the Sub-accounts will be used to purchase new
Units of the Sub-accounts that reflect the Insurance Charge (and the charge for
any optional benefits you have elected) but not the Distribution Charge. The
number of Units attributed to your Annuity will be decreased and the Unit Price
of each unit of the Sub-accounts in which you invested will be increased. The
adjustment in the number of Units and Unit Price will not affect your Account
Value. Beginning on that date, your Account Value will be determined based on
the change in the value of Units that reflect the Insurance Charge and any
other optional benefits that you have elected.
<R>
   Termination of Optional Benefits: Except for the Guaranteed Minimum Income
Benefit, the Combination 5% Roll-up and Highest Anniversary Value Death Benefit
and the Highest Daily Value Death Benefit, which cannot be terminated by the
owner once elected, if any optional benefit terminates, we will no longer
deduct the charge we apply to purchase the optional benefit. Certain optional
benefits may be added after you have purchased your Annuity. On the date a
charge no longer applies or a charge for an optional benefit begins to be
deducted, your Annuity will become subject to a different daily asset-based
charge. This change may result in the number of Units attributed to your
Annuity and the value of those Units being different than it was before the
change; however, the adjustment in the number of Units and Unit Price will not
affect your Account Value (although the change in charges that are deducted
will affect your Account Value).
</R>


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Tax Considerations

The tax considerations associated with each Annuity vary depending on whether
the contract is (i) owned by an individual and not associated with a
tax-favored retirement plan (including contracts held by a non-natural person,
such as a trust acting as an agent for a natural person), or (ii) held under a
tax-favored retirement plan. We discuss the tax considerations for these
categories of contracts below. The discussion is general in nature and
describes only federal income tax law (not state or other tax laws). It is
based on current law and interpretations, which may change. The discussion
includes a description of certain spousal rights under the contract and under
tax-qualified plans. Our administration of such spousal rights and related tax
reporting accords with our understanding of the Defense of Marriage Act (which
defines a "marriage" as a legal union between a man and a woman and a "spouse"
as a person of the opposite sex). The information provided is not intended as
tax advice. You should consult with a qualified tax advisor for complete
information and advice. References to Purchase Payments below relates to your
cost basis in your contract. Generally, your cost basis in a contract not
associated with a tax-favored retirement plan is the amount you pay into your
contract, or into annuities exchanged for your contract, on an after-tax basis
less any withdrawals of such payments.
<R>
   Each Annuity may also be purchased as a non-qualified annuity by a 401(a)
trust or custodial IRA or Roth IRA account, which can hold other permissible
assets other than the annuity. The terms and administration of the trust or
custodial account in accordance with the laws and regulations for 401(a) plans,
IRAs or Roth IRAs, as applicable, are the responsibility of the applicable
trustee or custodian.
</R>

CONTRACTS OWNED BY INDIVIDUALS (NOT ASSOCIATED WITH TAX-FAVORED RETIREMENT
PLANS)

TAXES PAYABLE BY YOU
We believe each Annuity is an annuity contract for tax purposes. Accordingly,
as a general rule, you should not pay any tax until you receive money under the
contract.
   Generally, annuity contracts issued by the same company (and affiliates) to
you during the same calendar year must be treated as one annuity contract for
purposes of determining the amount subject to tax under the rules described
below.
   It is possible that the Internal Revenue Service (IRS) would assert that
some or all of the charges for the optional benefits under the contract should
be treated for federal income tax purposes as a partial withdrawal from the
contract. If this were the case, the charge for this benefit could be deemed a
withdrawal and treated as taxable to the extent there are earnings in the
contract. Additionally, for owners under age 59 1/2, the taxable income
attributable to the charge for the benefit could be subject to a tax penalty.
   If the IRS determines that the charges for one or more benefits under the
contract are taxable withdrawals, then the sole or surviving owner will be
provided with a notice from us describing available alternatives regarding
these benefits.
   If you choose to defer the Annuity Date beyond the default date for your
Annuity, the IRS may not consider your contract to be an annuity under the tax
law. For more information, see "How and When Do I Choose the Annuity Payment
Option?".

TAXES ON WITHDRAWALS AND SURRENDER
If you make a withdrawal from your contract or surrender it before annuity
payments begin, the amount you receive will be taxed as ordinary income, rather
than as return of Purchase Payments, until all gain has been withdrawn. You
will generally be taxed on any withdrawals from the contract while you are
alive even if the withdrawal is paid to someone else.
   If you assign or pledge all or part of your contract as collateral for a
loan, the part assigned generally will be treated as a withdrawal.
   If you transfer your contract for less than full consideration, such as by
gift, you will trigger tax on any gain in the contract. This rule does not
apply if you transfer the contract to your spouse or under most circumstances
if you transfer the contract incident to divorce.

TAXES ON ANNUITY PAYMENTS
A portion of each annuity payment you receive will be treated as a partial
return of your Purchase Payments and will not be taxed. The remaining portion
will be taxed as ordinary income. Generally, the nontaxable portion is
determined by multiplying the annuity payment you receive by a fraction, the
numerator of which is your Purchase Payments (less any amounts previously
received tax-free) and the denominator of which is the total expected payments
under the contract.
<R>
   After the full amount of your Purchase Payments have been recovered
tax-free, the full amount of the annuity payments will be taxable. If annuity
payments stop due to the death of the annuitant before the full amount of your
Purchase Payments have been recovered, a tax deduction may be allowed for the
unrecovered amount.
</R>


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AMERICAN SKANDIA ANNUITIES PROSPECTUS

Tax Considerations continued


TAX PENALTY ON WITHDRAWALS AND ANNUITY PAYMENTS
Any taxable amount you receive under your contract may be subject to a 10% tax
penalty. Amounts are not subject to this tax penalty if:
.   the amount is paid on or after you reach age 59 1/2 or die;
.   the amount received is attributable to your becoming disabled;
.   generally the amount paid or received is in the form of substantially equal
    payments not less frequently than annually (Please note that substantially
    equal payments must continue until the later of reaching age 59 1/2 or 5
    years. Modification of payments during that time period will result in
    retroactive application of the 10% tax penalty.); or
.   the amount received is paid under an immediate annuity contract (in which
    annuity payments begin within one year of purchase).

SPECIAL RULES IN RELATION TO TAX-FREE EXCHANGES UNDER SECTION 1035
Section 1035 of the Internal Revenue Code of 1986, as amended (Code) permits
certain tax-free exchanges of a life insurance, annuity or endowment contract
for an annuity. If an Annuity is purchased through a tax-free exchange of a
life insurance, annuity or endowment contract that was purchased prior to
August 14, 1982, then any Purchase Payments made to the original contract prior
to August 14, 1982 will be treated as made to the new contract prior to that
date. (See Federal Tax Status section in the Statement of Additional
Information.)
   Partial surrenders may be treated in the same way as tax-free 1035 exchanges
of entire contracts, therefore avoiding current taxation of any gains in the
contract as well as the 10% tax penalty on pre-age 59 1/2 withdrawals. The IRS
has reserved the right to treat transactions it considers abusive as ineligible
for this favorable partial 1035 exchange treatment. We do not know what
transactions may be considered abusive. For example we do not know how the IRS
may view early withdrawals or annuitizations after a partial exchange. In
addition, it is unclear how the IRS will treat a partial exchange from a life
insurance, endowment, or annuity contract into an immediate annuity. As of the
date of this prospectus, we will accept a partial 1035 exchange from a
non-qualified annuity into an immediate annuity as a "tax-free" exchange for
future tax reporting purposes, except to the extent that we, as a reporting and
withholding agent, believe that we would be expected to deem the transaction to
be abusive. However, some insurance companies may not recognize these partial
surrenders as tax-free exchanges and may report them as taxable distributions
to the extent of any gain distributed as well as subjecting the taxable portion
of the distribution to the 10% tax penalty. We strongly urge you to discuss any
transaction of this type with your tax advisor before proceeding with the
transaction.

TAXES PAYABLE BY BENEFICIARIES
The Death Benefit options are subject to income tax to the extent the
distribution exceeds the cost basis in the contract. The value of the Death
Benefit, as determined under federal law, is also included in the owner's
estate.
   Generally, the same tax rules described above would also apply to amounts
received by your beneficiary. Choosing any option other than a lump sum Death
Benefit may defer taxes. Certain minimum distribution requirements apply upon
your death, as discussed further below.
   Tax consequences to the beneficiary vary among the Death Benefit payment
options.
.   Choice 1: the beneficiary is taxed on earnings in the contract.
.   Choice 2: the beneficiary is taxed as amounts are withdrawn (in this case
    earnings are treated as being distributed first).
.   Choice 3: the beneficiary is taxed on each payment (part will be treated as
    earnings and part as return of premiums).

Considerations for Contingent Annuitants: There may be adverse tax consequences
if a Contingent Annuitant succeeds an Annuitant when an Annuity is owned by a
trust that is neither tax exempt nor qualifies for preferred treatment under
certain sections of the Code. In general, the Code is designed to prevent
indefinite deferral of tax. Continuing the benefit of tax deferral by naming
one or more Contingent Annuitants when an Annuity is owned by a non-qualified
trust might be deemed an attempt to extend the tax deferral for an indefinite
period. Therefore, adverse tax treatment may depend on the terms of the trust,
who is named as Contingent Annuitant, as well as the particular facts and
circumstances. You should consult your tax advisor before naming a Contingent
Annuitant if you expect to use an Annuity in such a fashion.

REPORTING AND WITHHOLDING ON DISTRIBUTIONS
<R>
Taxable amounts distributed from an Annuity contract are subject to federal and
state income tax reporting and withholding. In general, we will withhold
federal income tax from the taxable portion of such distribution based on the
type of distribution. In the case of an annuity or similar periodic payment, we
will withhold as if you are a married individual with 3 exemptions unless you
designate a different withholding status. In the case of
</R>


                                      98




AMERICAN SKANDIA ANNUITIES PROSPECTUS

all other distributions, we will withhold at a 10% rate. You may generally
elect not to have tax withheld from your payments. An election out of
withholding must be made on forms that we provide.
   State income tax withholding rules vary and we will withhold based on the
rules of your State of residence. Special tax rules apply to withholding for
nonresident aliens, and we generally withhold income tax for nonresident aliens
at a 30% rate. A different withholding rate may be applicable to a nonresident
alien based on the terms of an existing income tax treaty between the United
States and the nonresident alien's country. Please refer to the discussion
below regarding withholding rules for tax favored plans (for example, an IRA).
   Regardless of the amount withheld by us, you are liable for payment of
federal and state income tax on the taxable portion of annuity distributions.
You should consult with your tax advisor regarding the payment of the correct
amount of these income taxes and potential liability if you fail to pay such
taxes.

ANNUITY QUALIFICATION
Diversification And Investor Control. In order to qualify for the tax rules
applicable to annuity contracts described above, the assets underlying the
Sub-accounts of an Annuity must be diversified, according to certain rules. We
believe these diversification rules will be met.
   An additional requirement for qualification for the tax treatment described
above is that we, and not you as the contract owner, must have sufficient
control over the underlying assets to be treated as the owner of the underlying
assets for tax purposes. While we also believe these investor control rules
will be met, the Treasury Department may promulgate guidelines under which a
variable annuity will not be treated as an annuity for tax purposes if persons
with ownership rights have excessive control over the investments underlying
such variable annuity. It is unclear whether such guidelines, if in fact
promulgated, would have retroactive effect. It is also unclear what effect, if
any, such guidelines may have on transfers between the investment options
offered pursuant to this Prospectus. We will take any action, including
modifications to your Annuity or the investment options, required to comply
with such guidelines if promulgated.
   Please refer to the Statement of Additional information for further
information on these Diversification and Investor Control issues.
   Required Distributions Upon Your Death. Upon your death, certain
distributions must be made under the contract. The required distributions
depend on whether you die before you start taking annuity payments under the
contract or after you start taking annuity payments under the contract.
   If you die on or after the Annuity Date, the remaining portion of the
interest in the contract must be distributed at least as rapidly as under the
method of distribution being used as of the date of death.
   If you die before the Annuity Date, the entire interest in the contract must
be distributed within 5 years after the date of death. However, if a periodic
payment option is selected by your designated beneficiary and if such payments
begin within 1 year of your death, the value of the contract may be distributed
over the beneficiary's life or a period not exceeding the beneficiary's life
expectancy. Your designated beneficiary is the person to whom benefit rights
under the contract pass by reason of death, and must be a natural person in
order to elect a periodic payment option based on life expectancy or a period
exceeding five years.
   If an Annuity is payable to (or for the benefit of) your surviving spouse,
that portion of the contract may be continued with your spouse as the owner.
   Changes In Your Annuity. We reserve the right to make any changes we deem
necessary to assure that your Annuity qualifies as an annuity contract for tax
purposes. Any such changes will apply to all contract owners and you will be
given notice to the extent feasible under the circumstances.

ADDITIONAL INFORMATION
You should refer to the Statement of Additional Information if:
.   The contract is held by a corporation or other entity instead of by an
    individual or as agent for an individual.
.   Your contract was issued in exchange for a contract containing purchase
    payments made before August 14, 1982.
.   You transfer your contract to, or designate, a beneficiary who is either
    37 1/2 years younger than you or a grandchild.

CONTRACTS HELD BY TAX-FAVORED PLANS
The following discussion covers annuity contracts held under tax-favored
retirement plans.
<R>
   Currently, an Annuity may be purchased for use in connection with individual
retirement accounts and annuities (IRAs) which are subject to Sections 408(a)
and 408(b) of the Code and Roth IRAs under Section 408A of the Code. In
addition, each Annuity may be purchased for use in connection with a corporate
Pension or Profit-sharing plan (subject to 401(a) of the Code), H.R. 10 plans
(also known as Keogh Plans, subject to 401(a) of the Code), Tax Sheltered
Annuities (subject to 403(b) of the Code, also known as Tax Deferred Annuities
or TDAs), and Section 457 plans (subject
</R>


                                      99




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Tax Considerations continued

to 457 of the Code). This description assumes that you have satisfied the
requirements for eligibility for these products.
<R>
   Each Annuity may also be purchased as a non-qualified annuity by a 401(a)
trust or custodial IRA or Roth IRA account, which can hold other permissible
assets other than the annuity. The terms and administration of the trust or
custodial account in accordance with the laws and regulations for 401(a) plans,
IRAs or Roth IRAs, as applicable, are the responsibility of the applicable
trustee or custodian.
</R>
   You should be aware that tax favored plans such as IRAs generally provide
income tax deferral regardless of whether they invest in annuity contracts.
This means that when a tax favored plan invests in an annuity contract, it
generally does not result in any additional tax benefits (such as income tax
deferral and income tax free transfers).

TYPES OF TAX-FAVORED PLANS
IRAs. If you buy an Annuity for use as an IRA, we will provide you a copy of
the prospectus and contract. The "IRA Disclosure Statement" contains
information about eligibility, contribution limits, tax particulars, and other
IRA information. In addition to this information (some of which is summarized
below), the IRS requires that you have a "free-look" after making an initial
contribution to the contract. During this time, you can cancel the Annuity by
notifying us in writing, and we will refund all of the Purchase Payments under
the Annuity (or, if provided by applicable state law, the amount credited under
the Annuity, if greater), less any applicable federal and state income tax
withholding.
<R>
   Contributions Limits/Rollovers. Because of the way each Annuity is designed,
you may purchase an Annuity for an IRA in connection with a "rollover" of
amounts from a qualified retirement plan or as a transfer from another IRA, as
a current contribution in the case of ASAP III, or if you are age 50 or older
by making a single contribution consisting of your IRA contributions and
catch-up contributions attributable to the prior year and the current year from
January 1 to April 15 of the current year in the case of XT6 and APEX II. In
2006 the contribution limit is $4,000; increasing to $5,000 in 2008. After 2008
the contribution amount will be indexed for inflation. The tax law also
provides for a catch-up provision for individuals who are age 50 and above,
permitting them to contribute an additional $1,000 each year.
</R>
   The "rollover" rules under the Code are fairly technical; however, an
individual (or his or her surviving spouse) may generally "roll over" certain
distributions from tax favored retirement plans (either directly or within 60
days from the date of these distributions) if he or she meets the requirements
for distribution. Once you buy an Annuity, you can make regular IRA
contributions under the Annuity (to the extent permitted by law). However, if
you make such regular IRA contributions, you should note that you will not be
able to treat the contract as a "conduit IRA," which means that you will not
retain possible favorable tax treatment if you subsequently "roll over" the
contract funds originally derived from a qualified retirement plan or TDA into
another Section 401(a) plan or TDA.
   Required Provisions. Contracts that are IRAs (or endorsements that are part
of the contract) must contain certain provisions:
.   You, as owner of the contract, must be the "annuitant" under the contract
    (except in certain cases involving the division of property under a decree
    of divorce);
.   Your rights as owner are non-forfeitable;
.   You cannot sell, assign or pledge the contract;
.   The annual contribution you pay cannot be greater than the maximum amount
    allowed by law, including catch-up contributions if applicable (which does
    not include any rollover amounts);
.   The date on which required minimum distributions must begin cannot be later
    than April 1st of the calendar year after the calendar year you turn age
    70 1/2; and
.   Death and annuity payments must meet "minimum distribution requirements"
    described below.

   Usually, the full amount of any distribution from an IRA (including a
distribution from this contract) which is not a rollover is taxable. As taxable
income, these distributions are subject to the general tax withholding rules
described earlier. In addition to this normal tax liability, you may also be
liable for the following, depending on your actions:
.   A 10% "early distribution penalty" described below;
.   Liability for "prohibited transactions" if you, for example, borrow against
    the value of an IRA; or
.   Failure to take a minimum distribution also described below.

   SEPs. SEPs are a variation on a standard IRA, and contracts issued to a SEP
must satisfy the same general requirements described under IRAs (above). There
are, however, some differences:
.   If you participate in a SEP, you generally do not include in income any
    employer contributions made to the SEP on your behalf up to the lesser of
    (a) $44,000 in 2006 or (b) 25% of your taxable compensation paid by the
    contributing employer


                                      100




AMERICAN SKANDIA ANNUITIES PROSPECTUS

  (not including the employer's SEP contribution as "compensation" for these
   purposes). However, for these purposes, compensation in excess of certain
   limits established by the IRS will not be considered. In 2006, this limit is
   $220,000;
.   SEPs must satisfy certain participation and nondiscrimination requirements
    not generally applicable to IRAs; and
.   SEPs that contain a salary reduction or "SARSEP" provision prior to 1997
    may permit salary deferrals up to $15,000 in 2006 with the employer making
    these contributions to the SEP. However, no new "salary reduction" or
    "SARSEPs" can be established after 1996. Individuals participating in a
    SARSEP who are age 50 or above by the end of the year will be permitted to
    contribute an additional $5,000 in 2006. Thereafter, the amount is indexed
    for inflation. These Annuities are not available for SARSEPs.

   You will also be provided the same information, and have the same
"free-look" period, as you would have if you purchased the contract for a
standard IRA.
<R>
   ROTH IRAs. The "Roth IRA Disclosure Statement" contains information about
eligibility, contribution limits, tax particulars and other Roth IRA
information. Like standard IRAs, income within a Roth IRA accumulates tax-free,
and contributions are subject to specific limits. Roth IRAs have, however, the
following differences:
</R>
.   Contributions to a Roth IRA cannot be deducted from your gross income;
.   "Qualified distributions" from a Roth IRA are excludable from gross income.
    A "qualified distribution" is a distribution that satisfies two
    requirements: (1) the distribution must be made (a) after the owner of the
    IRA attains age 59 1/2; (b) after the owner's death; (c) due to the owner's
    disability; or (d) for a qualified first time homebuyer distribution within
    the meaning of Section 72(t)(2)(F) of the Code; and (2) the distribution
    must be made in the year that is at least five tax years after the first
    year for which a contribution was made to any Roth IRA established for the
    owner or five years after a rollover, transfer, or conversion was made from
    a traditional IRA to a Roth IRA. Distributions from a Roth IRA that are not
    qualified distributions will be treated as made first from contributions
    and then from earnings, and earnings will be taxed generally in the same
    manner as distributions from a traditional IRA.
.   If eligible (including meeting income limitations and earnings
    requirements), you may make contributions to a Roth IRA after attaining age
    70 1/2, and distributions are not required to begin upon attaining such age
    or at any time thereafter.

<R>
   Because of the way each Annuity is designed, if you meet certain income
limitations you may purchase an Annuity for a Roth IRA, as a current
contribution in the case of ASAP III, or if you are age 50 or older by making a
single contribution consisting of your Roth IRA contributions and catch-up
contributions attributable to the prior year and the current year from January
1 to April 15 of the current year in the case of XT6 and APEX II. The Code
permits persons who meet certain income limitations (generally, adjusted gross
income under $100,000), who are not married filing a separate return and who
receive certain qualifying distributions from such non-Roth IRAs, to directly
rollover or make, within 60 days, a "rollover" of all or any part of the amount
of such distribution to a Roth IRA which they establish. This conversion
triggers current taxation (but is not subject to a 10% early distribution
penalty). Once an Annuity has been purchased, regular Roth IRA contributions
will be accepted to the extent permitted by law. As of January 1, 2006, an
individual receiving an eligible rollover distribution from a designated Roth
account under an employer plan may roll over the distribution to a Roth IRA
even if the individual is not eligible to make regular or conversion
contributions to a Roth IRA. If you are considering rolling over funds from
your Roth account under an employer plan, please contact your Financial
Professional prior to purchase to confirm whether such rollovers are being
accepted.
   TDAs. You may own a TDA generally if you are either an employer or employee
of a tax-exempt organization (as defined under Code Section 501(c)(3)) or a
public educational organization, and you may make contributions to a TDA so
long as the employee's rights to the annuity are nonforfeitable. Contributions
to a TDA, and any earnings, are not taxable until distribution. You may also
make contributions to a TDA under a salary reduction agreement, generally up to
a maximum of $15,000 in 2006. Individuals participating in a TDA who are age 50
or above by the end of the year will be permitted to contribute an additional
$5,000 in 2006. After 2006, the amount is indexed for inflation. Further, you
may roll over TDA amounts to another TDA or an IRA. You may also roll over TDA
amounts to a qualified retirement plan, a SEP and a 457 government plan. A
contract may only qualify as a TDA if distributions (other than "grandfathered"
amounts held as of December 31, 1988) may be made only on account of:
</R>
.   Your attainment of age 59 1/2;
.   Your severance of employment;
.   Your death;
.   Your total and permanent disability; or


                                      101




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Tax Considerations continued

.   Hardship (under limited circumstances, and only related to salary
    deferrals, not including earnings attributable to these amounts).
   In any event, you must begin receiving distributions from your TDA by
April 1/st /of the calendar year after the calendar year you turn age 70 1/2 or
retire, whichever is later.
   These distribution limits do not apply either to transfers or exchanges of
investments under the contract, or to any "direct transfer" of your interest in
the contract to another TDA or to a mutual fund "custodial account" described
under Code Section 403(b)(7).
   Employer contributions to TDAs are subject to the same general contribution,
nondiscrimination, and minimum participation rules applicable to "qualified"
retirement plans.

MINIMUM DISTRIBUTION REQUIREMENTS AND PAYMENT OPTION

<R>
If you hold the contract under an IRA (or other tax-favored plan), IRS minimum
distribution requirements must be satisfied. This means that generally payments
must start by April 1 of the year after the year you reach age 70/1//\\2 \\and
must be made for each year thereafter. For a Tax Sheltered Annuity or a 401(a)
plan for which the participant is not a greater than 5 percent owner of the
employer, this required beginning date can generally be deferred to retirement,
if later. Roth IRAs are not subject to these rules during the Owner's lifetime.
The amount of the payment must at least equal the minimum required under the
IRS rules. Several choices are available for calculating the minimum amount.
More information on the mechanics of this calculation is available on request.
Please contact us at a reasonable time before the IRS deadline so that a timely
distribution is made. Please note that there is a 50% tax penalty on the amount
of any minimum distribution not made in a timely manner.
</R>
   Effective in 2006, in accordance with recent changes in laws and
regulations, required minimum distributions will be calculated based on the sum
of the contract value and the actuarial value of any additional death benefits
and benefits from optional riders that you have purchased under the contract.
As a result, the required minimum distributions may be larger than if the
calculation were based on the contract value only, which may in turn result in
an earlier (but not before the required beginning date) distribution of amounts
under the Annuity and an increased amount of taxable income distributed to the
Annuity owner, and a reduction of death benefits and the benefits of any
optional riders.
   You can use the Minimum Distribution option to satisfy the IRS minimum
distribution requirements for an Annuity without either beginning annuity
payments or surrendering the Annuity. We will distribute to you this minimum
distribution amount, less any other partial withdrawals that you made during
the year.
   Although the IRS rules determine the required amount to be distributed from
your IRA each year, certain payment alternatives are still available to you. If
you own more than one IRA, you can choose to satisfy your minimum distribution
requirement for each of your IRAs by withdrawing that amount from any of your
IRAs. If you inherit more than one Roth IRA from the same owner, similar rules
apply.

PENALTY FOR EARLY WITHDRAWALS
You may owe a 10% tax penalty on the taxable part of distributions received
from an IRA, SEP, Roth IRA, TDA or qualified retirement plan before you attain
age 59 1/2. Amounts are not subject to this tax penalty if:
.   the amount is paid on or after you reach age 59 1/2 or die;
.   the amount received is attributable to your becoming disabled; or
.   generally the amount paid or received is in the form of substantially equal
    payments not less frequently than annually. (Please note that substantially
    equal payments must continue until the later of reaching age 59 1/2\\ \\or
    5 years. Modification of payments during that time period will result in
    retroactive application of the 10% tax penalty.)
   Other exceptions to this tax may apply. You should consult your tax advisor
for further details.

WITHHOLDING
Unless a distribution is an eligible rollover distribution that is "directly"
rolled over into another qualified plan, IRA (including the IRA variations
described above), SEP, 457 government plan or TDA, we will withhold federal
income tax at the rate of 20%. This 20% withholding does not apply to
distributions from IRAs and Roth IRAs. For all other distributions, unless you
elect otherwise, we will withhold federal income tax from the taxable portion
of such distribution at an appropriate percentage. The rate of withholding on
annuity payments where no mandatory withholding is required is determined on
the basis of the withholding certificate that you file with us. If you do not
file a certificate, we will automatically withhold federal taxes on the
following basis:
.   For any annuity payments not subject to mandatory withholding, you will
    have taxes withheld by us as if you are a married individual, with 3
    exemptions; and


                                      102




AMERICAN SKANDIA ANNUITIES PROSPECTUS

.   For all other distributions, we will withhold at a 10% rate. We will
    provide you with forms and instructions concerning the right to elect that
    no amount be withheld from payments in the ordinary course. However, you
    should know that, in any event, you are liable for payment of federal
    income taxes on the taxable portion of the distributions, and you should
    consult with your tax advisor to find out more information on your
    potential liability if you fail to pay such taxes. There may be additional
    state income tax withholding requirements.

ERISA DISCLOSURE/REQUIREMENTS
ERISA (the "Employee Retirement Income Security Act of 1974") and the Code
prevents a fiduciary and other "parties in interest" with respect to a plan
(and, for these purposes, an IRA would also constitute a "plan") from receiving
any benefit from any party dealing with the plan, as a result of the sale of
the contract. Administrative exemptions under ERISA generally permit the sale
of insurance/annuity products to plans, provided that certain information is
disclosed to the person purchasing the contract. This information has to do
primarily with the fees, charges, discounts and other costs related to the
contract, as well as any commissions paid to any agent selling the contract.
   Information about any applicable fees, charges, discounts, penalties or
adjustments may be found in the applicable sections of this Prospectus.
   Information about sales representatives and commissions may be found in the
sections of this Prospectus addressing distribution of the Annuities.
   Please consult your tax advisor if you have any additional questions.

SPOUSAL CONSENT RULES FOR RETIREMENT PLANS --QUALIFIED CONTRACTS
If you are married at the time your payments commence, you may be required by
federal law to choose an income option that provides survivor annuity income to
your spouse, unless your spouse waives that right. Similarly, if you are
married at the time of your death, federal law may require all or a portion of
the Death Benefit to be paid to your spouse, even if you designated someone
else as your beneficiary. A brief explanation of the applicable rules follows.
For more information, consult the terms of your retirement arrangement.
   Defined Benefit Plans and Money Purchase Pension Plans. If you are married
at the time your payments commence, federal law requires that benefits be paid
to you in the form of a "qualified joint and survivor annuity" (QJSA), unless
you and your spouse waive that right, in writing. Generally, this means that
you will receive a reduced payment during your life and, upon your death, your
spouse will receive at least one-half of what you were receiving for life. You
may elect to receive another income option if your spouse consents to the
election and waives his or her right to receive the QJSA. If your spouse
consents to the alternative form of payment, your spouse may not receive any
benefits from the plan upon your death. Federal law also requires that the plan
pay a Death Benefit to your spouse if you are married and die before you begin
receiving your benefit. This benefit must be available in the form of an
annuity for your spouse's lifetime and is called a "qualified pre-retirement
survivor annuity" (QPSA). If the plan pays Death Benefits to other
beneficiaries, you may elect to have a beneficiary other than your spouse
receive the Death Benefit, but only if your spouse consents to the election and
waives his or her right to receive the QPSA. If your spouse consents to the
alternate beneficiary, your spouse will receive no benefits from the plan upon
your death. Any QPSA waiver prior to your attaining age 35 will become null and
void on the first day of the calendar year in which you attain age 35, if still
employed.
   Defined Contribution Plans (including 401(k) Plans and ERISA 403(b)
Annuities). Spousal consent to a distribution is generally not required. Upon
your death, your spouse will receive the entire Death Benefit, even if you
designated someone else as your beneficiary, unless your spouse consents in
writing to waive this right. Also, if you are married and elect an annuity as a
periodic income option, federal law requires that you receive a QJSA (as
described above), unless you and your spouse consent to waive this right.
   IRAs, non-ERISA 403(b) Annuities, and 457 Plans. Spousal consent to a
distribution usually is not required. Upon your death, any Death Benefit will
be paid to your designated beneficiary.

ADDITIONAL INFORMATION
<R>
For additional information about federal tax law requirements applicable to
IRAs and Roth IRAs, see the IRA Disclosure Statement or Roth IRA Disclosure
Statement, as applicable.
</R>


                                      103




AMERICAN SKANDIA ANNUITIES PROSPECTUS

General Information


HOW WILL I RECEIVE STATEMENTS AND REPORTS?
<R>
We send any statements and reports required by applicable law or regulation to
you at your last known address of record. You should therefore give us prompt
notice of any address change. We reserve the right, to the extent permitted by
law and subject to your prior consent, to provide any prospectus, prospectus
supplements, confirmations, statements and reports required by applicable law
or regulation to you through our Internet Website at
www.americanskandia.prudential.com or any other electronic means, including
diskettes or CD ROMs. We send a confirmation statement to you each time a
transaction is made affecting Account Value, such as making additional Purchase
Payments, transfers, exchanges or withdrawals. We also send quarterly
statements detailing the activity affecting your Annuity during the calendar
quarter. We may confirm regularly scheduled transactions, such as the Annual
Maintenance Fee, Systematic Withdrawals (including 72(t) payments and required
minimum distributions), electronic funds transfer, Dollar Cost Averaging, and
static rebalancing, in quarterly statements instead of confirming them
immediately. You should review the information in these statements carefully.
You may request additional reports. We reserve the right to charge up to $50
for each such additional report. We may also send an annual report and a
semi-annual report containing applicable financial statements for the Separate
Account and the Portfolios, as of December 31 and June 30, respectively, to
Owners or, with your prior consent, make such documents available
electronically through our Internet Website or other electronic means.
</R>

WHO IS AMERICAN SKANDIA?
American Skandia Life Assurance Corporation, a Prudential Financial Company,
("American Skandia") is a stock life insurance company domiciled in Connecticut
with licenses in all 50 states, the District of Columbia and Puerto Rico.
American Skandia is a wholly-owned subsidiary of American Skandia, Inc.
("ASI"), whose ultimate parent is Prudential Financial, Inc. American Skandia
markets its products to broker-dealers and financial planners through an
internal field marketing staff. In addition, American Skandia markets through
and in conjunction with financial institutions such as banks that are permitted
directly, or through affiliates, to sell annuities.
<R>
   American Skandia offers a wide array of annuities, including (1) deferred
and immediate variable annuities that are registered with the SEC, including
fixed interest rate annuities that are offered as a companion to certain of our
variable annuities and are registered because of their market value adjustment
feature and (2) fixed annuities that are not registered with the SEC. In
addition, American Skandia has in force a relatively small block of variable
life insurance policies, but it no longer actively sells such policies.
   Effective May 1, 2003, Skandia U.S. Inc., the sole shareholder of ASI, which
is the parent of American Skandia, was purchased by Prudential Financial, Inc.
Prudential Financial, Inc. is a New Jersey insurance holding company whose
subsidiary companies serve individual and institutional customers worldwide and
include The Prudential Insurance Company of America, one of the largest life
insurance companies in the U.S. These companies offer a variety of products and
services, including life insurance, mutual funds, annuities, pension and
retirement related services and administration, asset management, securities
brokerage, banking and trust services, real estate brokerage franchises, and
relocation services.
</R>
   No company other than American Skandia has any legal responsibility to pay
amounts that it owes under its annuity and variable life insurance contracts.
However, Prudential Financial exercises significant influence over the
operations and capital structure of American Skandia.

WHAT ARE SEPARATE ACCOUNTS?
The separate accounts are where American Skandia sets aside and invests the
assets of some of our annuities. In the accumulation period, assets supporting
Account Values of the Annuities are held in a separate account established
under the laws of the State of Connecticut. We are the legal owner of assets in
the separate accounts. In the payout period, assets supporting fixed annuity
payments and any adjustable annuity payments we make available are held in our
general account. Assets supporting variable annuity payment options may be
invested in our separate accounts. Income, gains and losses from assets
allocated to these separate accounts are credited to or charged against each
such separate account without regard to other income, gains or losses of
American Skandia or of any other of our separate accounts. These assets may
only be charged with liabilities which arise from the Annuities issued by
American Skandia. The amount of our obligation in relation to allocations to
the Sub-accounts is based on the investment performance of such Sub-accounts.
However, the obligations themselves are our general corporate obligations.

SEPARATE ACCOUNT B
During the accumulation period, the assets supporting obligations based on
allocations to the Sub-accounts are held in Sub-accounts of American Skandia
Life Assurance Corporation Variable Account B, also referred to as "Separate
Account B".


                                      104




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Separate Account B was established by us pursuant to Connecticut law on
November 25, 1987. Separate Account B also holds assets of other annuities
issued by us with values and benefits that vary according to the investment
performance of Separate Account B.
   Separate Account B consists of multiple Sub-accounts. Each Sub-account
invests only in a single mutual fund or mutual fund portfolio. The name of each
Sub-account generally corresponds to the name of the underlying Portfolio. Each
Sub-account in Separate Account B may have several different Unit Prices to
reflect the Insurance Charge, Distribution Charge (when applicable) and the
charges for any optional benefits that are offered under the Annuities issued
by us through Separate Account B. Separate Account B is registered with the SEC
under the Investment Company Act of 1940 ("Investment Company Act") as a unit
investment trust, which is a type of investment company. The SEC does not
supervise investment policies, management or practices of Separate Account B.
   Prior to November 18, 2002, Separate Account B was organized as a single
separate account with six different Sub-account classes, each of which was
registered as a distinct unit investment trust under the Investment Company
Act. Effective November 18, 2002, each Sub-account class of Separate Account B
was consolidated into the unit investment trust formerly named American Skandia
Life Assurance Corporation Variable Account B (Class 1 Sub-accounts), which was
subsequently renamed American Skandia Life Assurance Corporation Variable
Account B. Each Sub-account of Separate Account B has multiple Unit Prices to
reflect the daily charge deducted for each combination of the applicable
Insurance Charge, Distribution Charge (when applicable) and the charge for each
optional benefit offered under Annuity contracts funded through Separate
Account B. The consolidation of Separate Account B had no impact on Annuity
Owners.
   We reserve the right to make changes to the Sub-accounts available under the
Annuities as we determine appropriate. We may offer new Sub-accounts, eliminate
Sub-accounts, or combine Sub-accounts at our sole discretion. We may also close
Sub-accounts to additional Purchase Payments on existing Annuity contracts or
close Sub-accounts for Annuities purchased on or after specified dates. We may
also substitute an underlying mutual fund or portfolio of an underlying mutual
fund for another underlying mutual fund or portfolio of an underlying mutual
fund, subject to our receipt of any exemptive relief that we are required to
obtain under the Investment Company Act. We will notify Owners of changes we
make to the Sub-accounts available under their Annuity.
   Values and benefits based on allocations to the Sub-accounts will vary with
the investment performance of the underlying mutual funds or fund portfolios,
as applicable. We do not guarantee the investment results of any Sub-account.
Your Account Value allocated to the Sub-accounts may increase or decrease. You
bear the entire investment risk. There is no assurance that the Account Value
of your Annuity will equal or be greater than the total of the Purchase
Payments you make to us.

SEPARATE ACCOUNT D
During the accumulation period, assets supporting our obligations based on
Fixed Allocations are held in American Skandia Life Assurance Corporation
Separate Account D, also referred to as "Separate Account D". Such obligations
are based on the fixed interest rates we credit to Fixed Allocations and the
terms of the Annuities. These obligations do not depend on the investment
performance of the assets in Separate Account D. Separate Account D was
established by us pursuant to Connecticut law.
   There are no units in Separate Account D. The Fixed Allocations are
guaranteed by our general account. An Annuity Owner who allocates a portion of
their Account Value to Separate Account D does not participate in the
investment gain or loss on assets maintained in Separate Account D. Such gain
or loss accrues solely to us. We retain the risk that the value of the assets
in Separate Account D may drop below the reserves and other liabilities we must
maintain. Should the value of the assets in Separate Account D drop below the
reserve and other liabilities we must maintain in relation to the annuities
supported by such assets, we will transfer assets from our general account to
Separate Account D to make up the difference. We have the right to transfer to
our general account any assets of Separate Account D in excess of such reserves
and other liabilities. We maintain assets in Separate Account D supporting a
number of annuities we offer.
<R>
   We may employ investment managers to manage the assets maintained in
Separate Account D. Each manager we employ is responsible for investment
management of a different portion of Separate Account D. From time to time
additional investment managers may be employed or investment managers may cease
being employed. We are under no obligation to employ or continue to employ any
investment manager(s) and have sole discretion over the investment managers we
retain.
</R>
   We are not obligated to invest according to specific guidelines or
strategies except as may be required by Connecticut and other state insurance
laws.


                                      105




AMERICAN SKANDIA ANNUITIES PROSPECTUS

General Information continued


WHAT IS THE LEGAL STRUCTURE OF THE UNDERLYING FUNDS?
Each underlying mutual fund is registered as an open-end management investment
company under the Investment Company Act. Shares of the underlying mutual fund
portfolios are sold to separate accounts of life insurance companies offering
variable annuity and variable life insurance products. The shares may also be
sold directly to qualified pension and retirement plans.

VOTING RIGHTS
<R>
We are the legal owner of the shares of the underlying mutual funds in which
the Sub-accounts invest. However, under SEC rules, you have voting rights in
relation to Account Value maintained in the Sub-accounts. If an underlying
mutual fund portfolio requests a vote of shareholders, we will vote our shares
based on instructions received from Owners with Account Value allocated to that
Sub-account. Owners have the right to vote an amount equal to the number of
shares attributable to their contracts. If we do not receive voting
instructions in relation to certain shares, we will vote those shares in the
same manner and proportion as the shares for which we have received
instructions. This voting procedure is sometimes referred to as "mirror voting"
because, as indicated in the immediately preceding sentence, we mirror the
votes that are actually cast, rather than decide on our own how to vote. In
addition, because all the shares of a given mutual fund held within our
separate account are legally owned by us, we intend to vote all of such shares
when that underlying fund seeks a vote of its shareholders. As such, all such
shares will be counted towards whether there is a quorum at the underlying
fund's shareholder meeting and towards the ultimate outcome of the vote. Thus,
under "mirror voting," it is possible that the votes of a small percentage of
contractholders who actually vote will determine the ultimate outcome. We will
furnish those Owners who have Account Value allocated to a Sub-account whose
underlying mutual fund portfolio has requested a "proxy" vote with proxy
materials and the necessary forms to provide us with their voting instructions.
Generally, you will be asked to provide instructions for us to vote on matters
such as changes in a fundamental investment strategy, adoption of a new
investment advisory agreement, or matters relating to the structure of the
underlying mutual fund that require a vote of shareholders.
</R>
   American Skandia Trust (the "Trust") has obtained an exemption from the
Securities and Exchange Commission that permits its co-investment advisers,
American Skandia Investment Services, Incorporated ("ASISI") and Prudential
Investments LLC, subject to approval by the Board of Trustees of the Trust, to
change sub-advisors for a Portfolio and to enter into new sub-advisory
agreements, without obtaining shareholder approval of the changes. This
exemption (which is similar to exemptions granted to other investment companies
that are organized in a similar manner as the Trust) is intended to facilitate
the efficient supervision and management of the sub-advisors by ASISI,
Prudential Investments LLC and the Trustees. The Trust is required, under the
terms of the exemption, to provide certain information to shareholders
following these types of changes. We may add new Sub-accounts that invest in a
series of underlying funds other than the Trust that is managed by an
affiliate. Such series of funds may have a similar order from the SEC. You also
should review the prospectuses for the other underlying funds in which various
Sub-accounts invest as to whether they have obtained similar orders from the
SEC.

MATERIAL CONFLICTS
It is possible that differences may occur between companies that offer shares
of an underlying mutual fund portfolio to their respective separate accounts
issuing variable annuities and/or variable life insurance products. Differences
may also occur surrounding the offering of an underlying mutual fund portfolio
to variable life insurance policies and variable annuity contracts that we
offer. Under certain circumstances, these differences could be considered
"material conflicts," in which case we would take necessary action to protect
persons with voting rights under our variable annuity contracts and variable
life insurance policies against persons with voting rights under other
insurance companies' variable insurance products. If a "material conflict" were
to arise between owners of variable annuity contracts and variable life
insurance policies issued by us we would take necessary action to treat such
persons equitably in resolving the conflict. "Material conflicts" could arise
due to differences in voting instructions between owners of variable life
insurance and variable annuity contracts of the same or different companies. We
monitor any potential conflicts that may exist.

SERVICE FEES PAYABLE TO AMERICAN SKANDIA
American Skandia or our affiliates have entered into agreements with the
investment adviser or distributor of the underlying Portfolios. Under the terms
of these agreements, American Skandia may provide administrative and support
services to the Portfolios for which it receives a fee of up to 0.75%
(currently) of the average assets allocated to the Portfolios under each
Annuity from the investment adviser, distributor and/or the fund. These
agreements may be different for each underlying mutual fund whose portfolios
are offered as Sub-accounts.


                                      106




AMERICAN SKANDIA ANNUITIES PROSPECTUS

   In addition, the investment adviser, sub-advisor or distributor of the
underlying Portfolios may also compensate us by providing reimbursement or
paying directly for, among other things, marketing and/or administrative
services and/or other services they provide in connection with each Annuity.
These services may include, but are not limited to: co-sponsoring various
meetings and seminars attended by broker-dealer firms' registered
representatives and creating marketing material discussing each Annuity and the
available options.

WHO DISTRIBUTES ANNUITIES OFFERED BY AMERICAN SKANDIA?
<R>
American Skandia Marketing, Incorporated ("ASM"), a wholly-owned subsidiary of
American Skandia, Inc., is the distributor and principal underwriter of the
securities offered through this prospectus. ASM acts as the distributor of a
number of annuity and life insurance products we offer and co-distributor of
American Skandia Trust.
</R>
   ASM's principal business address is One Corporate Drive, Shelton,
Connecticut 06484. ASM is registered as broker-dealer under the Securities
Exchange Act of 1934 ("Exchange Act") and is a member of the National
Association of Securities Dealers, Inc. ("NASD").
   Each Annuity is offered on a continuous basis. ASM enters into distribution
agreements with broker-dealers who are registered under the Exchange Act and
with entities that may offer the Annuities but are exempt from registration
("firms"). Applications for each Annuity are solicited by registered
representatives of those firms. Such representatives will also be our appointed
insurance agents under state insurance law. In addition, ASM may offer the
Annuities directly to potential purchasers.
   Commissions are paid to firms on sales of the Annuities according to one or
more schedules. The individual representative will receive a portion of the
compensation, depending on the practice of his or her firm. Commissions are
generally based on a percentage of Purchase Payments made, up to a maximum of
7.0% for ASAP III, 6.0% for XT6, 5.5% for APEX II and 2.0% for ASL II.
Alternative compensation schedules are available that provide a lower initial
commission plus ongoing annual compensation based on all or a portion of the
Account Value. We may also provide compensation to the distributing firm for
providing ongoing service to you in relation to your Annuity. Commissions and
other compensation paid in relation to your Annuity do not result in any
additional charge to you or to the Separate Account.
   In addition, in an effort to promote the sale of our products (which may
include the placement of American Skandia and/or the Annuities on a preferred
or recommended company or product list and/or access to the firm's registered
representatives), we or ASM may enter into compensation arrangements with
certain broker-dealer firms with respect to certain or all registered
representatives of such firms under which such firms may receive separate
compensation or reimbursement for, among other things, training of sales
personnel and/or marketing and/or administrative services and/or other services
they provide. These services may include, but are not limited to: educating
customers of the firm on the Annuitys' features; conducting due diligence and
analysis, providing office access, operations and systems support; holding
seminars intended to educate the firm's registered representatives and make
them more knowledgeable about the Annuities; providing a dedicated marketing
coordinator; providing priority sales desk support; and providing expedited
marketing compliance approval. To the extent permitted by NASD rules and other
applicable laws and regulations, ASM may pay or allow other promotional
incentives or payments in the form of cash or non-cash compensation. These
arrangements may not be offered to all firms and the terms of such arrangements
may differ between firms. A list of the firms to whom American Skandia pays an
amount of greater than $10,000 under these arrangements is provided in the
Statement of Additional Information, which is available upon request. You
should note that firms and individual registered representatives and branch
managers within some firms participating in one of these compensation
arrangements might receive greater compensation for selling the Annuities than
for selling a different annuity that is not eligible for these compensation
arrangements. While compensation is generally taken into account as an expense
in considering the charges applicable to an annuity product, any such
compensation will be paid by us or ASM and will not result in any additional
charge to you. Overall compensation paid to the distributing firm does not
exceed, based on actuarial assumptions, 8.5% of the total Purchase Payments
made. Your registered representative can provide you with more information
about the compensation arrangements that apply upon the sale of the Annuity.
   On July 1, 2003, Prudential Financial combined its retail securities
brokerage and clearing operations with those of Wachovia Corporation
("Wachovia") and formed Wachovia Securities Financial Holdings, LLC ("Wachovia
Securities"), a joint venture headquartered in Richmond, Virginia. Prudential
Financial has a 38% ownership interest in the joint venture, while Wachovia
owns the remaining 62%.


                                      107




AMERICAN SKANDIA ANNUITIES PROSPECTUS

General Information continued

   Wachovia and Wachovia Securities are key distribution partners for certain
products of Prudential Financial affiliates, including mutual funds and
individual annuities that are distributed through their financial advisors,
bank channel and independent channel. In addition, Prudential Financial is a
service provider to the managed account platform and certain wrap-fee programs
offered by Wachovia Securities.

INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
<R>
American Skandia publishes annual and quarterly reports that are filed with the
SEC. These reports contain financial information about American Skandia that is
annually audited by an independent registered public accounting firm. American
Skandia's annual report for the year ended December 31, 2005, together with
subsequent periodic reports that American Skandia files with the SEC, are
incorporated by reference into this prospectus. You can obtain copies, at no
cost, of any and all of this information, including the American Skandia annual
report that is not ordinarily mailed to contract owners, the more current
reports and any subsequently filed documents at no cost by contacting us at
American Skandia -- Variable Annuities; P.O. Box 7960, Philadelphia, PA 19176
(Telephone: 203-926-1888). The SEC file number for American Skandia is
33-44202. You may read and copy any filings made by American Skandia with the
SEC at the SEC's Public Reference Room at 100 F Street, N.E. Washington, D.C.
20549. You can obtain information on the operation of the Public Reference Room
by calling (202) 551-8090. The SEC maintains an Internet site that contains
reports, proxy and information statements, and other information regarding
issuers that file electronically with the SEC at http://www.sec.gov.
</R>

FINANCIAL STATEMENTS
The financial statements of the separate account and American Skandia Life
Assurance Corporation are included in the Statement of Additional Information.

HOW TO CONTACT US
You can contact us by:
.   calling our Customer Service Team at 1-800-752-6342 during our normal
    business hours, Monday through Friday, or Skandia's telephone automated
    response system at 1-800-766-4530.
.   writing to us via regular mail at American Skandia -- Variable Annuities,
    P.O. Box 7960, Philadelphia, PA 19176 OR for express mail American Skandia
    -- Variable Annuities, 2101 Welsh Road, Dresher, PA 19025. NOTE: Failure to
    send mail to the proper address may result in a delay in our receiving and
    processing your request.
.   sending an email to customerservice@prudential.com or visiting our Internet
    Website at www.americanskandia.prudential.com.
.   accessing information about your Annuity through our Internet Website at
    www.americanskandia.prudential.com.

<R>
   You can obtain account information by calling our automated response system
and at www.americanskandia.prudential.com, our Internet Website. Our Customer
Service representatives are also available during business hours to provide you
with information about your account. You can request certain transactions
through our telephone voice response system, our Internet Website or through a
customer service representative. You can provide authorization for a third
party, including your attorney-in-fact acting pursuant to a power of attorney
or your Financial Professional, to access your account information and perform
certain transactions on your account. You will need to complete a form provided
by us which identifies those transactions that you wish to authorize via
telephonic and electronic means and whether you wish to authorize a third party
to perform any such transactions. Please note that unless you tell us
otherwise, we deem that all transactions that are directed by your Financial
Professional with respect to your Annuity have been authorized by you. We
require that you or your representative provide proper identification before
performing transactions over the telephone or through our Internet Website.
This may include a Personal Identification Number (PIN) that will be provided
to you upon issue of your Annuity or you may establish or change your PIN by
calling our automated response system and at
www.americanskandia.prudential.com, our Internet Website. Any third party that
you authorize to perform financial transactions on your account will be
assigned a PIN for your account.
</R>
   Transactions requested via telephone are recorded. To the extent permitted
by law, we will not be responsible for any claims, loss, liability or expense
in connection with a transaction requested by telephone or other electronic
means if we acted on such transaction instructions after following reasonable
procedures to identify those persons authorized to perform transactions on your
Annuity using verification methods which may include a request for your Social
Security number, PIN or other form of electronic identification. We may be
liable for losses due to


                                      108




AMERICAN SKANDIA ANNUITIES PROSPECTUS

unauthorized or fraudulent instructions if we did not follow such procedures.
   American Skandia does not guarantee access to telephonic, facsimile,
Internet or any other electronic information or that we will be able to accept
transaction instructions via such means at all times. Regular and/or express
mail will be the only means by which we will accept transaction instructions
when telephonic, facsimile, Internet or any other electronic means are
unavailable or delayed. American Skandia reserves the right to limit, restrict
or terminate telephonic, facsimile, Internet or any other electronic
transaction privileges at any time.

INDEMNIFICATION
Insofar as indemnification for liabilities arising under the Securities Act of
1933 (the "Securities Act") may be permitted to directors, officers or persons
controlling the registrant pursuant to the foregoing provisions, the registrant
has been informed that in the opinion of the SEC such indemnification is
against public policy as expressed in the Securities Act and is therefore
unenforceable.

LEGAL PROCEEDINGS
<R>
American Skandia is subject to legal and regulatory actions in the ordinary
course of its business, including class action lawsuits. American Skandia's
pending legal and regulatory actions include proceedings specific to us and
proceedings generally applicable to business practices in the industry in which
we operate. We are subject to class action lawsuits and other litigation
alleging, among other things, that we made improper or inadequate disclosures
in connection with the sale of annuity products or charged excessive or
impermissible fees on these products, recommended unsuitable products to
customers, mishandled customer accounts or breached fiduciary duties to
customers. We are also subject to litigation arising out of our general
business activities, such as our investments, contracts, leases and labor and
employment relationships, including claims of discrimination and harassment. In
some of our pending legal and regulatory actions, parties are seeking large
and/or indeterminate amounts, including punitive or exemplary damages. The
following is a summary of certain pending proceedings.
   American Skandia is in discussions with various state insurance departments
concerning a remediation program to correct errors in the administration of
approximately 11,000 annuity contracts issued by us. The owners of these
contracts did not receive notification that the contracts were approaching or
past their designated annuitization date or default annuitization date (both
dates referred to as the "contractual annuity date") and the contracts were not
annuitized at their contractual annuity dates. Some of these contracts also
were affected by data integrity errors resulting in incorrect contractual
annuity dates. The lack of notice and the data integrity errors, as reflected
on the annuities administrative system, all occurred before the acquisition of
American Skandia by Prudential Financial, Inc. Certain state insurance
departments have requested modifications to the remediation program that
American Skandia anticipates will impact the overall cost of the program. The
remediation and administrative costs of the remediation program would be
subject to the indemnification provisions of the agreement pursuant to which
Prudential Financial, Inc. acquired American Skandia (the "Acquisition
Agreement").
   With the approval of Skandia Insurance Company Ltd. (publ) ("Skandia"), an
offer was made to the authorities investigating American Skandia and certain
affiliated companies, the SEC and New York Attorney General, to settle the
matters relating to market timing in variable annuities by paying restitution
and a civil penalty of $95 million in the aggregate. While not assured,
American Skandia believes these discussions are likely to lead to settlements
with these authorities. Any regulatory settlement involving American Skandia or
any affiliates of American Skandia that Prudential Financial, Inc. acquired
from Skandia would be subject to the indemnification provisions of the
Acquisition Agreement. If achieved, settlement of the matters could involve
continuing monitoring, changes to and/or supervision of business practices,
findings that may adversely affect existing or cause additional litigation,
adverse publicity and other adverse impacts to American Skandia's business.
   American Skandia's litigation is subject to many uncertainties, and given
its complexity and scope, its outcome cannot be predicted. It is possible that
the results of operations or the cash flow of American Skandia in a particular
quarterly or annual period could be materially affected by an ultimate
unfavorable resolution of pending litigation and regulatory matters depending,
in part, upon the results of operations or cash flow for such period.
Management believes, however, that the ultimate outcome of all pending
litigation and regulatory matters, after consideration of applicable reserves,
should not have a material adverse effect on American Skandia's financial
position.
   It should be noted that the judgments, settlements and expenses associated
with many of these lawsuits, administrative and regulatory matters, and
contingencies, including the claims described above, may, in whole or in part,
after satisfaction of certain retention requirements, fall within Skandia's
indemnification obligations to Prudential Financial, Inc. and its subsidiaries
under the terms of the Acquisition Agreement. Those obligations of Skandia
provide for indemnification of certain judgments, settlements, and costs and
expenses associated with lawsuits and other claims against American Skandia
("matters"),
</R>


                                      109




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B

Separate Account B consists of multiple Sub-accounts that are available as
investment options for the American Skandia Annuities. Each Sub-account invests
only in a single mutual fund or mutual fund portfolio. All or some of these
Sub-accounts are available as investment options for other variable annuities
we offer pursuant to different prospectuses.

<R>
Unit Prices And Numbers Of Units: The following tables show for each Annuity:
(a) the historical Unit Price, corresponding to the Annuity features bearing
the highest and lowest combinations of asset-based charges, as of the dates
shown, for Units in each of the Sub-accounts of Separate Account B that are
being offered pursuant to this Prospectus*; and (b) the number of Units
outstanding for each such Sub-account as of the dates shown. In the tables,
"BOP" refers to Beginning of Period and "EOP" refers to End of Period. The
period for each year begins on January 1 and ends on December 31. Since
November 18, 2002, we have been determining, on a daily basis, multiple Unit
Prices for each Sub-account of Separate Account B. We compute multiple Unit
Prices because several of our variable annuities invest in the same
Sub-accounts, and these annuities deduct varying charges that correspond to
each combination of the applicable Insurance Charge, Distribution Charge (when
applicable) and the charges for each optional benefit. Where an asset-based
charge corresponding to a particular Sub-account within a new annuity product
is identical to that in the same Sub-account within an existing annuity, the
Unit Price for the new annuity will be identical to that of the existing
annuity. In such cases, we will for reference purposes depict, in the condensed
financial information for the new annuity, Unit Prices of the existing annuity.
The year in which operations commenced in each such Sub-account is noted in
parentheses. To the extent a Sub-account commenced operations during a
particular calendar year, the Unit Price as of the end of the period reflects
only the partial year results from the commencement of operations until
December 31/st /of the applicable year. When a Unit Price was first calculated
for a particular Sub-account, we set the price of that Unit at $10.00 per Unit.
Thereafter, Unit Prices vary based on market performance. Unit Prices and Units
are provided for Sub-accounts that commenced operations prior to January 1,
2006.
</R>

* The remaining unit values appear in the Statement of Additional Information,
which you may obtain free of charge by sending in the request form at the end
of the Prospectus or contacting us at 1-800-752-6342.


                                      A-1




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASAP III - Prospectus

<R>
        SUB-ACCOUNT                       2005    2004  2003 2002 2001 2000
        -------------------------------------------------------------------
        AST Aggressive Asset Allocation Portfolio
           With No Optional Benefits
           BOP Unit Value                     --   --    --   --   --
           EOP Unit Value                 $10.00   --    --   --   --   --
           Number of Units               171,403   --    --   --   --   --
           With LT5, HDV, and EBP
           BOP Unit Value                     --   --    --   --   --
           EOP Unit Value                  $9.99   --    --   --   --   --
           Number of Units                    --   --    --   --   --   --
        -------------------------------------------------------------------
        AST Capital Growth Asset Allocation Portfolio
           With No Optional Benefits
           BOP Unit Value                     --   --    --   --   --
           EOP Unit Value                 $10.01   --    --   --   --   --
           Number of Units               403,183   --    --   --   --   --
           With LT5, HDV, and EBP
           BOP Unit Value                     --   --    --   --   --
           EOP Unit Value                 $10.00   --    --   --   --   --
           Number of Units                    --   --    --   --   --   --
        -------------------------------------------------------------------
        AST Balanced Asset Allocation Portfolio
           With No Optional Benefits
           BOP Unit Value                     --   --    --   --   --
           EOP Unit Value                 $10.02   --    --   --   --   --
           Number of Units               405,782   --    --   --   --   --
           With LT5, HDV, and EBP
           BOP Unit Value                     --   --    --   --   --
           EOP Unit Value                 $10.01   --    --   --   --   --
           Number of Units                    --   --    --   --   --   --
        -------------------------------------------------------------------
        AST Conservative Asset Allocation Portfolio
           With No Optional Benefits
           BOP Unit Value                     --   --    --   --   --
           EOP Unit Value                 $10.03   --    --   --   --   --
           Number of Units                53,897   --    --   --   --   --
           With LT5, HDV, and EBP
           BOP Unit Value                     --   --    --   --   --
           EOP Unit Value                 $10.02   --    --   --   --   --
           Number of Units                    --   --    --   --   --   --
        -------------------------------------------------------------------
        AST Preservation Asset Allocation Portfolio
           With No Optional Benefits
           BOP Unit Value                     --   --    --   --   --
           EOP Unit Value                 $10.04   --    --   --   --   --
           Number of Units               215,279   --    --   --   --   --
           With LT5, HDV, and EBP
           BOP Unit Value                     --   --    --   --   --
           EOP Unit Value                 $10.03   --    --   --   --   --
           Number of Units                    --   --    --   --   --   --
        -------------------------------------------------------------------
</R>


                                      A-2



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASAP III - Prospectus (continued)

<R>
SUB-ACCOUNT                    2005      2004      2003     2002    2001    2000
---------------------------------------------------------------------------------
AST JP Morgan International Equity
   With No Optional Benefits
   BOP Unit Value                $8.24     $7.13     $5.53   $6.86   $8.99
   EOP Unit Value                 9.04      8.24      7.13    5.53    6.86  $8.99
   Number of Units           1,051,557   553,542   362,254 153,652 136,976 33,897
   With LT5, HDV, and EBP
   BOP Unit Value                   --        --        --      --      --
   EOP Unit Value               $10.57        --        --      --      --     --
   Number of Units                  --        --        --      --      --     --
---------------------------------------------------------------------------------
AST William Blair International Growth (1997)
   With No Optional Benefits
   BOP Unit Value               $16.42    $14.32    $10.35   $14.1  $18.68
   EOP Unit Value                18.90     16.42     14.32   10.35    14.1 $18.68
   Number of Units           2,113,594 1,953,908 1,166,396   7,064   5,277  6,782
   With LT5, HDV, and EBP
   BOP Unit Value                   --        --        --      --      --
   EOP Unit Value               $11.20        --        --      --      --     --
   Number of Units                  --        --        --      --      --     --
---------------------------------------------------------------------------------
AST LSV International Value
   With No Optional Benefits
   BOP Unit Value                $7.01     $5.86     $4.43   $5.41   $8.08
   EOP Unit Value                 7.87      7.01      5.86    4.43    5.41  $8.08
   Number of Units             402,497   233,045    91,736  32,967  29,954 20,311
   With LT5, HDV, and EBP
   BOP Unit Value                   --        --        --      --      --
   EOP Unit Value               $10.62        --        --      --      --     --
   Number of Units                  --        --        --      --      --     --
---------------------------------------------------------------------------------
AST MFS Global Equity (1999)
   With No Optional Benefits
   BOP Unit Value               $10.98     $9.40     $7.48   $8.64   $9.72
   EOP Unit Value                11.67     10.98      9.40    7.48    8.64  $9.72
   Number of Units             218,705   213,485   123,219  46,925  49,536 23,151
   With LT5, HDV, and EBP
   BOP Unit Value                   --        --        --      --      --
   EOP Unit Value               $10.39        --        --      --      --     --
   Number of Units                  --        --        --      --      --     --
---------------------------------------------------------------------------------
AST Small-Cap Growth
   With No Optional Benefits
   BOP Unit Value               $15.97    $17.38    $12.12   $18.7  $20.25
   EOP Unit Value                16.00     15.97     17.38   12.12    18.7 $20.25
   Number of Units             126,824   107,136   145,364   6,331   2,439    978
   With LT5, HDV, and EBP
   BOP Unit Value                   --        --        --      --      --
   EOP Unit Value               $10.35        --        --      --      --     --
   Number of Units                  --        --        --      --      --     --
---------------------------------------------------------------------------------
</R>


                                      A-3




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASAP III - Prospectus (continued)


<R>
SUB-ACCOUNT                    2005      2004      2003     2002   2001   2000
-------------------------------------------------------------------------------
AST DeAM Small-Cap Growth (1999)
   With No Optional Benefits
   BOP Unit Value                $7.41     $6.86     $4.71  $6.48  $9.17
   EOP Unit Value                 7.35      7.41      6.86   4.71   6.48  $9.17
   Number of Units             267,925   293,384   258,089 44,611 41,602 35,743
   With LT5, HDV, and EBP
   BOP Unit Value                   --        --        --     --     --
   EOP Unit Value               $10.23        --        --     --     --     --
   Number of Units                  --        --        --     --     --     --
-------------------------------------------------------------------------------
AST Federated Aggressive Growth (2000)
   With No Optional Benefits
   BOP Unit Value               $10.12     $8.33     $4.98  $7.12  $9.08
   EOP Unit Value                10.94     10.12      8.33   4.98   7.12  $9.08
   Number of Units           1,386,930 1,169,995   859,909 25,040 10,912    243
   With LT5, HDV, and EBP
   BOP Unit Value                   --        --        --     --     --
   EOP Unit Value               $10.87        --        --     --     --     --
   Number of Units                  --        --        --     --     --     --
-------------------------------------------------------------------------------
AST Small-Cap Value (1997)
   With No Optional Benefits
   BOP Unit Value               $16.64    $14.47    $10.79 $12.06 $11.41
   EOP Unit Value                17.52     16.64     14.47  10.79  12.06 $11.41
   Number of Units           1,484,712 1,293,786   962,965 66,744 33,608 15,339
   With LT5, HDV, and EBP
   BOP Unit Value                   --        --        --     --     --
   EOP Unit Value               $10.56        --        --     --     --     --
   Number of Units                  --        --        --     --     --     --
-------------------------------------------------------------------------------
AST DeAM Small-Cap Value (2002)
   With No Optional Benefits
   BOP Unit Value               $13.13    $10.89     $7.69     --     --
   EOP Unit Value                13.12     13.13     10.89  $7.69     --     --
   Number of Units             187,206   138,078   131,066    124     --     --
   With LT5, HDV, and EBP
   BOP Unit Value                   --        --        --     --     --
   EOP Unit Value                $9.94        --        --     --     --     --
   Number of Units                  --        --        --     --     --     --
-------------------------------------------------------------------------------
AST Goldman Sachs Mid-Cap Growth (2000)
   With No Optional Benefits
   BOP Unit Value                $4.44     $3.87     $2.98  $4.15  $7.03
   EOP Unit Value                 4.60      4.44      3.87   2.98   4.15  $7.03
   Number of Units           2,666,933 2,232,502 1,535,565 28,812 17,882  2,473
   With LT5, HDV, and EBP
   BOP Unit Value                   --        --        --     --     --
   EOP Unit Value               $10.49        --        --     --     --     --
   Number of Units                  --        --        --     --     --     --
-------------------------------------------------------------------------------
</R>


                                      A-4



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASAP III - Prospectus (continued)


<R>
 SUB-ACCOUNT                          2005          2004        2003    2002   2001   2000
 ------------------------------------------------------------------------------------------
 AST Neuberger Berman Mid-Cap Growth (1994)
    With No Optional Benefits
    BOP Unit Value                      $7.14         $6.23      $4.83  $7.11  $9.71
    EOP Unit Value                       8.00          7.14       6.23   4.83   7.11  $9.71
    Number of Units                   771,461       555,160    371,267 56,712 51,711 36,882
    With LT5, HDV, and EBP
    BOP Unit Value                         --            --         --     --     --
    EOP Unit Value                     $11.25            --         --     --     --     --
    Number of Units                        --            --         --     --     --     --
 ------------------------------------------------------------------------------------------
 AST Neuberger Berman Mid-Cap Value (1993)
    With No Optional Benefits
    BOP Unit Value                     $16.76        $13.82     $10.26 $11.62 $12.13
    EOP Unit Value                      18.55         16.76      13.82  10.26  11.62 $12.13
    Number of Units                 1,303,740     1,116,503    781,348 69,657 56,219 16,574
    With LT5, HDV, and EBP
    BOP Unit Value                         --            --         --     --     --
    EOP Unit Value                     $10.80            --         --     --     --     --
    Number of Units                        --            --         --     --     --     --
 ------------------------------------------------------------------------------------------
 AST Alger All-Cap Growth (2000)
  (merged into AST Neuberger Berman Mid-Cap Growth)
    With No Optional Benefits
    BOP Unit Value                      $6.49         $6.06      $4.53  $7.14  $8.68
    EOP Unit Value                       7.48          6.49       6.06   4.53   7.14  $8.68
    Number of Units                        --       214,092    200,264 61,001 56,649 30,915
    With LT5, HDV, and EBP
    BOP Unit Value                         --            --         --     --     --
    EOP Unit Value                     $11.63            --         --     --     --     --
    Number of Units                        --            --         --     --     --     --
 ------------------------------------------------------------------------------------------
 AST Mid-Cap Value (2000) (formerly AST Gabelli All-Cap Value)
    With No Optional Benefits
    BOP Unit Value                     $11.63        $10.21      $7.61  $9.72 $10.07
    EOP Unit Value                      12.11         11.63      10.21   7.61   9.72 $10.07
    Number of Units                   192,419       256,401    140,873 38,982 26,857 12,895
    With LT5, HDV, and EBP
    BOP Unit Value                         --            --         --     --     --
    EOP Unit Value                     $10.27            --         --     --     --     --
    Number of Units                        --            --         --     --     --     --
 ------------------------------------------------------------------------------------------
 AST T. Rowe Price Natural Resources (1995)
    With No Optional Benefits
    BOP Unit Value                     $17.81        $13.75     $10.42 $11.18 $11.24
    EOP Unit Value                      23.11         17.81      13.75  10.42  11.18 $11.24
    Number of Units                   254,041       192,336     75,013  4,994  1,879    -0-
    With LT5, HDV, and EBP
    BOP Unit Value                         --            --         --     --     --
    EOP Unit Value                     $11.65            --         --     --     --     --
    Number of Units                        --            --         --     --     --     --
 ------------------------------------------------------------------------------------------
</R>


                                      A-5




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASAP III - Prospectus (continued)

<R>
  SUB-ACCOUNT                 2005          2004         2003     2002    2001    2000
  --------------------------------------------------------------------------------------
  AST T. Rowe Price Large-Cap Growth
   (formerly AST AllianceBernstein Large-Cap Growth)
     With No Optional Benefits
     BOP Unit Value             $6.19         $5.93        $4.86   $7.12   $8.46
     EOP Unit Value              7.12          6.19         5.93    4.86    7.12   $8.46
     Number of Units          512,012       326,194      263,698 106,056 106,762  97,356
     With LT5, HDV, and EBP
     BOP Unit Value                --            --           --      --      --
     EOP Unit Value            $12.02            --           --      --      --      --
     Number of Units               --            --           --      --      --      --
  --------------------------------------------------------------------------------------
  AST MFS Growth (1999)
     With No Optional Benefits
     BOP Unit Value             $7.04         $6.44        $5.31   $7.48   $9.68
     EOP Unit Value              7.39          7.04         6.44    5.31    7.48   $9.68
     Number of Units        1,025,239       791,823      893,170 112,701  47,656   3,089
     With LT5, HDV, and EBP
     BOP Unit Value                --            --           --      --      --
     EOP Unit Value            $10.67            --           --      --      --      --
     Number of Units               --            --           --      --      --      --
  --------------------------------------------------------------------------------------
  AST Marsico Capital Growth (1997)
     With No Optional Benefits
     BOP Unit Value             $9.67         $8.46        $6.50    $7.8  $10.09
     EOP Unit Value             10.20          9.67         8.46     6.5     7.8  $10.09
     Number of Units        7,048,021     5,717,404    4,075,719 228,033 182,904 114,992
     With LT5, HDV, and EBP
     BOP Unit Value                --            --           --      --      --
     EOP Unit Value            $10.82            --           --      --      --      --
     Number of Units               --            --           --      --      --      --
  --------------------------------------------------------------------------------------
  AST Goldman Sachs Concentrated Growth (1992)
     With No Optional Benefits
     BOP Unit Value             $4.68         $4.57        $3.69   $5.33    $7.9
     EOP Unit Value              4.77          4.68         4.57    3.69    5.33    $7.9
     Number of Units          657,833       733,920      604,491 405,437 404,404 235,747
     With LT5, HDV, and EBP
     BOP Unit Value                --            --           --      --      --
     EOP Unit Value            $10.67            --           --      --      --      --
     Number of Units               --            --           --      --      --      --
  --------------------------------------------------------------------------------------
  AST DeAM Large-Cap Value (2000)
     With No Optional Benefits
     BOP Unit Value            $11.18         $9.58        $7.67   $9.17   $9.83
     EOP Unit Value             12.07         11.18         9.58    7.67    9.17   $9.83
     Number of Units          242,789       191,637       85,554   7,126   1,696     442
     With LT5, HDV, and EBP
     BOP Unit Value                --            --           --      --      --
     EOP Unit Value            $10.63            --           --      --      --      --
     Number of Units               --            --           --      --      --      --
  --------------------------------------------------------------------------------------
</R>


                                      A-6



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASAP III - Prospectus (continued)

<R>
      SUB-ACCOUNT               2005       2004       2003      2002    2001    2000
      -------------------------------------------------------------------------------
      AST AllianceBernstein Growth + Value (2001)
       (merged into AST AllianceBernstein Managed Index 500)
         With No Optional Benefits
         BOP Unit Value          $9.66      $8.89      $7.14     $9.64      --
         EOP Unit Value          10.72       9.66       8.89      7.14   $9.64     --
         Number of Units            --    194,363    137,293    37,810     -0-     --
         With LT5, HDV, and EBP
         BOP Unit Value             --         --         --        --      --
         EOP Unit Value         $11.24         --         --        --      --     --
         Number of Units            --         --         --        --      --     --
      -------------------------------------------------------------------------------
      AST AllianceBernstein Core Value (2001)
         With No Optional Benefits
         BOP Unit Value         $12.28     $10.91      $8.61    $10.05      --
         EOP Unit Value          12.79      12.28      10.91      8.61  $10.05     --
         Number of Units       635,232    603,508    453,569    82,054  18,453     --
         With LT5, HDV, and EBP
         BOP Unit Value             --         --         --        --      --
         EOP Unit Value         $10.23         --         --        --      --     --
         Number of Units            --         --         --        --      --     --
      -------------------------------------------------------------------------------
      AST Cohen & Steers Real Estate (1998)
         With No Optional Benefits
         BOP Unit Value         $22.03     $16.17     $11.91    $11.75  $11.57
         EOP Unit Value          24.98      22.03      16.17     11.91   11.75 $11.57
         Number of Units       223,264    281,181    149,582    25,464  16,487 16,557
         With LT5, HDV, and EBP
         BOP Unit Value             --         --         --        --      --
         EOP Unit Value         $11.92         --         --        --      --     --
         Number of Units            --         --         --        --      --     --
      -------------------------------------------------------------------------------
      AST AllianceBernstein Managed Index 500 (1998)
         With No Optional Benefits
         BOP Unit Value          $8.99      $8.28      $6.59     $8.41   $9.46
         EOP Unit Value           9.20       8.99       8.28      6.59    8.41  $9.46
         Number of Units       851,019    642,882    554,156    90,506  39,414  9,941
         With LT5, HDV, and EBP
         BOP Unit Value             --         --         --        --      --
         EOP Unit Value         $10.32         --         --        --      --     --
         Number of Units            --         --         --        --      --     --
      -------------------------------------------------------------------------------
      AST American Century Income & Growth (1997)
         With No Optional Benefits
         BOP Unit Value          $9.48      $8.52      $6.70     $8.47   $9.36
         EOP Unit Value           9.79       9.48       8.52       6.7    8.47  $9.36
         Number of Units       626,417    613,910    339,653   124,168 113,372 70,887
         With LT5, HDV, and EBP
         BOP Unit Value             --         --         --        --      --
         EOP Unit Value         $10.25         --         --        --      --     --
         Number of Units            --         --         --        --      --     --
      -------------------------------------------------------------------------------
</R>


                                      A-7




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASAP III - Prospectus (continued)

<R>
   SUB-ACCOUNT               2005       2004      2003     2002    2001    2000
   -----------------------------------------------------------------------------
   AST AllianceBernstein Growth & Income
      With No Optional Benefits
      BOP Unit Value          $11.24     $10.25     $7.84  $10.35  $10.53
      EOP Unit Value           11.63      11.24     10.25    7.84   10.35 $10.53
      Number of Units      5,200,126  4,119,501 3,076,626 142,152 205,232 34,439
      With LT5, HDV, and EBP
      BOP Unit Value              --         --        --      --      --
      EOP Unit Value          $10.18         --        --      --      --     --
      Number of Units             --         --        --      --      --     --
   -----------------------------------------------------------------------------
   AST Large-Cap Value
    (formerly AST Hotchkis & Wiley Large-Cap Value)
      With No Optional Benefits
      BOP Unit Value          $10.25      $8.99     $7.59   $9.31  $10.32
      EOP Unit Value           10.77      10.25      8.99    7.59    9.31 $10.32
      Number of Units        694,885    417,314   204,589  44,419  44,212  8,596
      With LT5, HDV, and EBP
      BOP Unit Value              --         --        --      --      --
      EOP Unit Value          $10.47         --        --      --      --     --
      Number of Units             --         --        --      --      --     --
   -----------------------------------------------------------------------------
   AST Global Allocation (1993)
      With No Optional Benefits
      BOP Unit Value           $9.55      $8.71     $7.38   $8.84  $10.14
      EOP Unit Value           10.09       9.55      8.71    7.38    8.84 $10.14
      Number of Units         80,896     78,619    61,801  34,451  38,208 30,678
      With LT5, HDV, and EBP
      BOP Unit Value              --         --        --      --      --
      EOP Unit Value          $10.54         --        --      --      --     --
      Number of Units             --         --        --      --      --     --
   -----------------------------------------------------------------------------
   AST American Century Strategic Balanced (1997)
      With No Optional Benefits
      BOP Unit Value          $10.56      $9.81     $8.36   $9.38   $9.87
      EOP Unit Value           10.91      10.56      9.81    8.36    9.38  $9.87
      Number of Units        173,191    146,721   115,095   5,490   4,905  1,725
      With LT5, HDV, and EBP
      BOP Unit Value              --         --        --      --      --
      EOP Unit Value          $10.23         --        --      --      --     --
      Number of Units             --         --        --      --      --     --
   -----------------------------------------------------------------------------
   AST T. Rowe Price Asset Allocation (1994)
      With No Optional Benefits
      BOP Unit Value          $11.39     $10.37     $8.47   $9.52  $10.12
      EOP Unit Value           11.77      11.39     10.37    8.47    9.52 $10.12
      Number of Units        558,395    357,085   222,150  13,799  13,152  2,412
      With LT5, HDV, and EBP
      BOP Unit Value              --         --        --      --      --
      EOP Unit Value          $10.27         --        --      --      --     --
      Number of Units             --         --        --      --      --     --
   -----------------------------------------------------------------------------
</R>


                                      A-8



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASAP III - Prospectus (continued)

<R>
   SUB-ACCOUNT               2005       2004      2003     2002    2001    2000
   -----------------------------------------------------------------------------
   AST T. Rowe Price Global Bond (1994)
      With No Optional Benefits
      BOP Unit Value          $14.73     $13.73    $12.32  $10.84   $10.7
      EOP Unit Value           13.89      14.73     13.73   12.32   10.84  $10.7
      Number of Units        938,585    657,913   289,862  36,987  16,390    -0-
      With LT5, HDV, and EBP
      BOP Unit Value              --         --        --      --      --
      EOP Unit Value           $9.37         --        --      --      --     --
      Number of Units             --         --        --      --      --     --
   -----------------------------------------------------------------------------
   AST High Yield
    (formerly AST Goldman Sachs High Yield Bond)
      With No Optional Benefits
      BOP Unit Value          $12.06     $10.99     $9.16   $9.27   $9.37
      EOP Unit Value           12.04      12.06     10.99    9.16    9.27  $9.37
      Number of Units        873,440    957,756   906,947  73,614  45,297 12,929
      With LT5, HDV, and EBP
      BOP Unit Value              --         --        --      --      --
      EOP Unit Value           $9.78         --        --      --      --     --
      Number of Units             --         --        --      --      --     --
   -----------------------------------------------------------------------------
   AST Lord Abbett Bond-Debenture (2000)
      With No Optional Benefits
      BOP Unit Value          $12.71     $11.98    $10.22   $10.3  $10.13
      EOP Unit Value           12.69      12.71     11.98   10.22    10.3 $10.13
      Number of Units      1,294,706  1,012,739   814,135  43,077  16,628    425
      With LT5, HDV, and EBP
      BOP Unit Value              --         --        --      --      --
      EOP Unit Value           $9.87         --        --      --      --     --
      Number of Units             --         --        --      --      --     --
   -----------------------------------------------------------------------------
   AST PIMCO Total Return Bond (1994)
      With No Optional Benefits
      BOP Unit Value          $13.72     $13.23    $12.72   $11.8  $10.97
      EOP Unit Value           13.88      13.72     13.23   12.72    11.8 $10.97
      Number of Units      1,924,370  3,074,732 2,301,863 362,294 275,317 37,918
      With LT5, HDV, and EBP
      BOP Unit Value              --         --        --      --      --
      EOP Unit Value          $10.07         --        --      --      --     --
      Number of Units             --         --        --      --      --     --
   -----------------------------------------------------------------------------
   AST PIMCO Limited Maturity Bond (1995)
      With No Optional Benefits
      BOP Unit Value          $12.18     $12.08    $10.09  $11.29  $10.59
      EOP Unit Value           12.22      12.18     12.08   10.09   11.29 $10.59
      Number of Units      2,996,257  2,189,975   956,856  38,260 112,948  1,940
      With LT5, HDV, and EBP
      BOP Unit Value              --         --        --      --      --
      EOP Unit Value           $9.98         --        --      --      --     --
      Number of Units             --         --        --      --      --     --
   -----------------------------------------------------------------------------
</R>


                                      A-9




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASAP III - Prospectus (continued)

<R>
   SUB-ACCOUNT               2005       2004      2003     2002    2001    2000
   -----------------------------------------------------------------------------
   AST Money Market (1992)
      With No Optional Benefits
      BOP Unit Value          $10.46     $10.51    $10.57  $10.57  $10.32
      EOP Unit Value           10.62      10.46     10.51   10.57   10.57 $10.32
      Number of Units      3,179,376  1,663,940 1,245,396 403,604 179,509 29,567
      With LT5, HDV, and EBP
      BOP Unit Value              --         --        --      --      --
      EOP Unit Value          $10.02         --        --      --      --     --
      Number of Units             --         --        --      --      --     --
   -----------------------------------------------------------------------------
   SP William Blair International Growth
      With No Optional Benefits
      BOP Unit Value          $10.53         --        --      --      --
      EOP Unit Value           12.10      10.53        --      --      --     --
      Number of Units         32,119     18,568        --      --      --     --
      With LT5, HDV, and EBP
      BOP Unit Value              --         --        --      --      --
      EOP Unit Value          $11.21         --        --      --      --     --
      Number of Units             --         --        --      --      --     --
   -----------------------------------------------------------------------------
   Gartmore Variable Investment Trust --
    GVIT Developing Markets (1996)
      With No Optional Benefits
      BOP Unit Value          $12.52     $10.59     $6.71   $7.53   $8.19
      EOP Unit Value           16.26      12.52     10.59    6.71    7.53  $8.19
      Number of Units        351,335    264,541   122,136   6,530   6,555  3,293
      With LT5, HDV, and EBP
      BOP Unit Value              --         --        --      --      --
      EOP Unit Value          $11.97         --        --      --      --     --
      Number of Units             --         --        --      --      --     --
   -----------------------------------------------------------------------------
   Wells Fargo Advantage VT Equity Income (1999)
    (formerly WFVT Advantage Equity Income)
      With No Optional Benefits
      BOP Unit Value          $17.32     $15.79    $12.67  $15.89  $17.01
      EOP Unit Value           18.02      17.32     15.79   12.67   15.89 $17.01
      Number of Units         23,574     19,612    10,586   1,063   1,992    -0-
      With LT5, HDV, and EBP
      BOP Unit Value              --         --        --      --      --
      EOP Unit Value          $10.12         --        --      --      --     --
      Number of Units             --         --        --      --      --     --
   -----------------------------------------------------------------------------
   AIM V.I. -- Dynamics (1999)
      With No Optional Benefits
      BOP Unit Value           $6.96      $6.22     $4.57    $6.8   $9.99
      EOP Unit Value            7.61       6.96      6.22    4.57     6.8  $9.99
      Number of Units        135,001    188,184   137,600  18,808  15,825 22,264
      With LT5, HDV, and EBP
      BOP Unit Value              --         --        --      --      --
      EOP Unit Value          $10.83         --        --      --      --     --
      Number of Units             --         --        --      --      --     --
   -----------------------------------------------------------------------------
</R>


                                     A-10



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASAP III - Prospectus (continued)

<R>
        SUB-ACCOUNT               2005      2004     2003   2002   2001   2000
        -----------------------------------------------------------------------
        AIM V.I. -- Technology (1999)
           With No Optional Benefits
           BOP Unit Value          $3.32    $3.21    $2.24  $4.27  $7.98
           EOP Unit Value           3.35     3.32     3.21   2.24   4.27  $7.98
           Number of Units        77,941   78,567   42,720 30,448 35,767 25,984
           With LT5, HDV, and EBP
           BOP Unit Value             --       --       --     --     --
           EOP Unit Value         $10.64       --       --     --     --     --
           Number of Units            --       --       --     --     --     --
        -----------------------------------------------------------------------
        AIM V.I. -- Global Health Care (1999)
         (formerly AIM V.I. -- Health Sciences)
           With No Optional Benefits
           BOP Unit Value         $11.34   $10.68    $8.46 $11.35 $13.14
           EOP Unit Value          12.12    11.34    10.68   8.46  11.35 $13.14
           Number of Units       106,295   92,506   59,116 19,405 27,104 32,969
           With LT5, HDV, and EBP
           BOP Unit Value             --       --       --     --     --
           EOP Unit Value         $11.08       --       --     --     --     --
           Number of Units            --       --       --     --     --     --
        -----------------------------------------------------------------------
        AIM V.I. -- Financial Services (1999)
           With No Optional Benefits
           BOP Unit Value         $12.72   $11.85    $9.26 $11.02 $12.38
           EOP Unit Value          13.30    12.72    11.85   9.26  11.02 $12.38
           Number of Units        48,007   44,091   48,538  7,204  8,536  9,786
           With LT5, HDV, and EBP
           BOP Unit Value             --       --       --     --     --
           EOP Unit Value         $10.66       --       --     --     --     --
           Number of Units            --       --       --     --     --     --
        -----------------------------------------------------------------------
        Evergreen VA -- International Equity (2000)
           With No Optional Benefits
           BOP Unit Value         $12.31   $10.46       --     --     --
           EOP Unit Value          14.10    12.31   $10.46     --     --     --
           Number of Units       130,750   62,400   24,847     --     --     --
           With LT5, HDV, and EBP
           BOP Unit Value             --       --       --     --     --
           EOP Unit Value         $10.92       --       --     --     --     --
           Number of Units            --       --       --     --     --     --
        -----------------------------------------------------------------------
        Evergreen VA -- Special Equity (1999)
         (merged into Evergreen VA Growth)
           With No Optional Benefits
           BOP Unit Value          $9.57    $9.16    $6.10  $8.49  $9.35
           EOP Unit Value           8.53     9.57     9.16    6.1   8.49  $9.35
           Number of Units            --   92,559   69,344  5,427  5,085    -0-
           With LT5, HDV, and EBP
           BOP Unit Value             --       --       --     --     --
           EOP Unit Value          $9.26       --       --     --     --     --
           Number of Units            --       --       --     --     --     --
        -----------------------------------------------------------------------
</R>


                                     A-11




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASAP III - Prospectus (continued)

<R>
    SUB-ACCOUNT                      2005    2004    2003  2002  2001  2000
    -----------------------------------------------------------------------
    Evergreen VA -- Omega (2000)
       With No Optional Benefits
       BOP Unit Value                 $9.75   $9.21     -- $9.04    --
       EOP Unit Value                 10.00    9.75  $9.21    -- $9.04   --
       Number of Units               18,356  26,849 15,743    --    --   --
       With LT5, HDV, and EBP
       BOP Unit Value                    --      --     --    --    --
       EOP Unit Value                $10.53      --     --    --    --   --
       Number of Units                   --      --     --    --    --   --
    -----------------------------------------------------------------------
    Evergreen VA Growth Fund
       With No Optional Benefits
       BOP Unit Value                    --
       EOP Unit Value                $11.47      --     --    --    --   --
       Number of Units               64,775      --     --    --    --   --
       With LT5, HDV, and EBP
       BOP Unit Value                    --      --     --    --    --
       EOP Unit Value                $11.36      --     --    --    --   --
       Number of Units                   --      --     --    --    --   --
    -----------------------------------------------------------------------
    ProFund VP -- Europe 30 (1999)
       With No Optional Benefits
       BOP Unit Value                 $7.90   $7.00  $5.11 $6.97  $9.3
       EOP Unit Value                  8.43    7.90   7.00  5.11  6.97 $9.3
       Number of Units               76,381 201,444 75,543 2,539 7,317  -0-
       With LT5, HDV, and EBP
       BOP Unit Value                    --      --     --    --    --
       EOP Unit Value                $10.45      --     --    --    --   --
       Number of Units                   --      --     --    --    --   --
    -----------------------------------------------------------------------
    ProFund VP -- Asia 30 (2002)
       With No Optional Benefits
       BOP Unit Value                $12.43  $12.66     --    --    --
       EOP Unit Value                 14.67   12.43 $12.66    --    --   --
       Number of Units               83,233  63,254 47,272    --    --   --
       With LT5, HDV, and EBP
       BOP Unit Value                    --      --     --    --    --
       EOP Unit Value                $11.13      --     --    --    --   --
       Number of Units                   --      --     --    --    --   --
    -----------------------------------------------------------------------
    ProFund VP -- Japan (2002)
       With No Optional Benefits
       BOP Unit Value                 $9.65   $9.09     --    --    --
       EOP Unit Value                 13.51    9.65  $9.09    --    --   --
       Number of Units              165,707  87,251 28,579    --    --   --
       With LT5, HDV, and EBP
       BOP Unit Value                    --      --     --    --    --
       EOP Unit Value                $13.42      --     --    --    --   --
       Number of Units                   --      --     --    --    --   --
    -----------------------------------------------------------------------
</R>


                                     A-12



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASAP III - Prospectus (continued)

<R>
    SUB-ACCOUNT                         2005   2004   2003  2002  2001  2000
    ------------------------------------------------------------------------
    ProFund VP -- Banks (2002)
       With No Optional Benefits
       BOP Unit Value                  $12.11 $10.97     --    --    --
       EOP Unit Value                   11.94  12.11 $10.97    --    --  --
       Number of Units                 44,665 12,480  8,886    --    --  --
       With LT5, HDV, and EBP
       BOP Unit Value                      --     --     --    --    --
       EOP Unit Value                  $10.13     --     --    --    --  --
       Number of Units                     --     --     --    --    --  --
    ------------------------------------------------------------------------
    ProFund VP -- Basic Materials (2002)
       With No Optional Benefits
       BOP Unit Value                  $12.00 $11.02     --    --    --
       EOP Unit Value                   12.13  12.00 $11.02    --    --  --
       Number of Units                 53,592 42,597 53,759    --    --  --
       With LT5, HDV, and EBP
       BOP Unit Value                      --     --     --    --    --
       EOP Unit Value                   $9.51     --     --    --    --  --
       Number of Units                     --     --     --    --    --  --
    ------------------------------------------------------------------------
    ProFund VP -- Biotechnology (2001)
       With No Optional Benefits
       BOP Unit Value                   $7.73  $7.14  $5.17 $8.38    --
       EOP Unit Value                    9.11   7.73   7.14  5.17 $8.38  --
       Number of Units                 73,804 32,726 20,329   460 3,279  --
       With LT5, HDV, and EBP
       BOP Unit Value                      --     --     --    --    --
       EOP Unit Value                  $13.53     --     --    --    --  --
       Number of Units                     --     --     --    --    --  --
    ------------------------------------------------------------------------
    ProFund VP -- Consumer Services (2002)
       With No Optional Benefits
       BOP Unit Value                   $9.67  $9.10     --    --    --
       EOP Unit Value                    9.10   9.67  $9.10    --    --  --
       Number of Units                  3,866 20,288 13,935    --    --  --
       With LT5, HDV, and EBP
       BOP Unit Value                      --     --     --    --    --
       EOP Unit Value                   $9.70     --     --    --    --  --
       Number of Units                     --     --     --    --    --  --
    ------------------------------------------------------------------------
    ProFund VP -- Consumer Goods (2002)
       With No Optional Benefits
       BOP Unit Value                  $10.47  $9.71     --    --    --
       EOP Unit Value                   10.31  10.47  $9.71    --    --  --
       Number of Units                  6,876  7,578  3,821    --    --  --
       With LT5, HDV, and EBP
       BOP Unit Value                      --     --     --    --    --
       EOP Unit Value                   $9.76     --     --    --    --  --
       Number of Units                     --     --     --    --    --  --
    ------------------------------------------------------------------------
</R>


                                     A-13




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASAP III - Prospectus (continued)

<R>
    SUB-ACCOUNT                      2005    2004    2003  2002  2001  2000
    -----------------------------------------------------------------------
    ProFund VP -- Oil & Gas (2001)
       With No Optional Benefits
       BOP Unit Value                $11.62   $9.10     --  $9.2    --
       EOP Unit Value                 15.07   11.62  $9.10    --  $9.2  --
       Number of Units              278,771 186,654 50,155    --   -0-  --
       With LT5, HDV, and EBP
       BOP Unit Value                    --      --     --    --    --
       EOP Unit Value                $10.96      --     --    --    --  --
       Number of Units                   --      --     --    --    --  --
    -----------------------------------------------------------------------
    ProFund VP -- Financials (2001)
       With No Optional Benefits
       BOP Unit Value                $10.77   $9.88  $7.76 $9.23    --
       EOP Unit Value                 11.06   10.77   9.88  7.76 $9.23  --
       Number of Units               43,105  70,662 32,283 3,258 8,154  --
       With LT5, HDV, and EBP
       BOP Unit Value                    --      --     --    --    --
       EOP Unit Value                $10.56      --     --    --    --  --
       Number of Units                   --      --     --    --    --  --
    -----------------------------------------------------------------------
    ProFund VP -- Health Care (2001)
       With No Optional Benefits
       BOP Unit Value                 $8.38   $8.29  $7.15 $9.37    --
       EOP Unit Value                  8.77    8.38   8.29  7.15 $9.37  --
       Number of Units               83,943  91,641 23,591 1,235 2,564  --
       With LT5, HDV, and EBP
       BOP Unit Value                    --      --     --    --    --
       EOP Unit Value                $10.49      --     --    --    --  --
       Number of Units                   --      --     --    --    --  --
    -----------------------------------------------------------------------
    ProFund VP -- Industrials (2002)
       With No Optional Benefits
       BOP Unit Value                $11.27  $10.08     --    --    --
       EOP Unit Value                 11.40   11.27 $10.08    --    --  --
       Number of Units                9,851  22,333 11,186    --    --  --
       With LT5, HDV, and EBP
       BOP Unit Value                    --      --     --    --    --
       EOP Unit Value                $10.10      --     --    --    --  --
       Number of Units                   --      --     --    --    --  --
    -----------------------------------------------------------------------
    ProFund VP -- Internet (2002)
       With No Optional Benefits
       BOP Unit Value                $18.08  $15.10     --    --    --
       EOP Unit Value                 19.18   18.08 $15.10    --    --  --
       Number of Units               46,724  20,851  8,287    --    --  --
       With LT5, HDV, and EBP
       BOP Unit Value                    --      --     --    --    --
       EOP Unit Value                $12.76      --     --    --    --  --
       Number of Units                   --      --     --    --    --  --
    -----------------------------------------------------------------------
</R>


                                     A-14



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASAP III - Prospectus (continued)

<R>
     SUB-ACCOUNT                    2005     2004    2003   2002   2001  2000
     ------------------------------------------------------------------------
     ProFund VP -- Pharmaceuticals (2002)
        With No Optional Benefits
        BOP Unit Value               $8.02    $8.95     --     --     --
        EOP Unit Value                7.62     8.02  $8.95     --     --  --
        Number of Units             36,753   27,913 24,743     --     --  --
        With LT5, HDV, and EBP
        BOP Unit Value                  --       --     --     --     --
        EOP Unit Value               $9.47       --     --     --     --  --
        Number of Units                 --       --     --     --     --  --
     ------------------------------------------------------------------------
     ProFund VP -- Precious Metals (2002)
        With No Optional Benefits
        BOP Unit Value              $11.90   $13.38  $9.73     --     --
        EOP Unit Value               14.84    11.90  13.38  $9.73     --  --
        Number of Units            200,315  102,230 89,687  1,179     --  --
        With LT5, HDV, and EBP
        BOP Unit Value                  --       --     --     --     --
        EOP Unit Value              $12.04       --     --     --     --  --
        Number of Units                 --       --     --     --     --  --
     ------------------------------------------------------------------------
     ProFund VP -- Real Estate (2001)
        With No Optional Benefits
        BOP Unit Value              $17.58   $14.00 $10.65 $10.78     --
        EOP Unit Value               18.54    17.58  14.00  10.65 $10.78  --
        Number of Units             31,980   53,006 18,355  2,230  2,306  --
        With LT5, HDV, and EBP
        BOP Unit Value                  --       --     --     --     --
        EOP Unit Value              $11.21       --     --     --     --  --
        Number of Units                 --       --     --     --     --  --
     ------------------------------------------------------------------------
     ProFund VP -- Semiconductor (2002)
        With No Optional Benefits
        BOP Unit Value               $7.23    $9.58     --     --     --
        EOP Unit Value                7.76     7.23  $9.58     --     --  --
        Number of Units             68,309   52,485 17,621     --     --  --
        With LT5, HDV, and EBP
        BOP Unit Value                  --       --     --     --     --
        EOP Unit Value              $10.68       --     --     --     --  --
        Number of Units                 --       --     --     --     --  --
     ------------------------------------------------------------------------
     ProFund VP -- Technology (2001)
        With No Optional Benefits
        BOP Unit Value               $4.91    $5.00     --  $5.92     --
        EOP Unit Value                4.91     4.91  $5.00     --  $5.92  --
        Number of Units            109,698   88,720 74,180     -- 12,704  --
        With LT5, HDV, and EBP
        BOP Unit Value                  --       --     --     --     --
        EOP Unit Value              $10.57       --     --     --     --  --
        Number of Units                 --       --     --     --     --  --
     ------------------------------------------------------------------------
</R>


                                     A-15




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASAP III - Prospectus (continued)

<R>
   SUB-ACCOUNT                     2005    2004    2003    2002   2001  2000
   -------------------------------------------------------------------------
   ProFund VP -- Telecommunications (2001)
      With No Optional Benefits
      BOP Unit Value                $5.04   $4.41      --  $7.11     --
      EOP Unit Value                 4.64    5.04   $4.41     --  $7.11  --
      Number of Units              45,279 118,731  30,179     --    -0-  --
      With LT5, HDV, and EBP
      BOP Unit Value                   --      --      --     --     --
      EOP Unit Value                $9.77      --      --     --     --  --
      Number of Units                  --      --      --     --     --  --
   -------------------------------------------------------------------------
   ProFund VP -- Utilities (2001)
      With No Optional Benefits
      BOP Unit Value                $8.75   $7.32   $6.11  $8.13     --
      EOP Unit Value                 9.77    8.75    7.32   6.11  $8.13  --
      Number of Units             213,813  79,702  18,902    491    -0-  --
      With LT5, HDV, and EBP
      BOP Unit Value                   --      --      --     --     --
      EOP Unit Value               $10.64      --      --     --     --  --
      Number of Units                  --      --      --     --     --  --
   -------------------------------------------------------------------------
   ProFund VP -- Bull (2002)
      With No Optional Benefits
      BOP Unit Value               $10.65   $9.91      --     --     --
      EOP Unit Value                10.80   10.65   $9.91     --     --  --
      Number of Units             384,503 412,259 394,427     --     --  --
      With LT5, HDV, and EBP
      BOP Unit Value                   --      --      --     --     --
      EOP Unit Value               $10.15      --      --     --     --  --
      Number of Units                  --      --      --     --     --  --
   -------------------------------------------------------------------------
   ProFund VP -- Bear (2001)
      With No Optional Benefits
      BOP Unit Value                $9.09  $10.26  $13.78 $11.55     --
      EOP Unit Value                 8.86    9.09   10.26  13.78 $11.55  --
      Number of Units              35,612  16,155  28,299  2,012    -0-  --
      With LT5, HDV, and EBP
      BOP Unit Value                   --      --      --     --     --
      EOP Unit Value                $9.57      --      --     --     --  --
      Number of Units                  --      --      --     --     --  --
   -------------------------------------------------------------------------
   ProFund VP -- Ultra Bull (2001)
      With No Optional Benefits
      BOP Unit Value                $8.25   $7.13   $4.72  $7.48     --
      EOP Unit Value                 8.36    8.25    7.13   4.72  $7.48  --
      Number of Units              82,031 305,666  56,257  2,988    -0-  --
      With LT5, HDV, and EBP
      BOP Unit Value                   --      --      --     --     --
      EOP Unit Value               $10.28      --      --     --     --  --
      Number of Units                  --      --      --     --     --  --
   -------------------------------------------------------------------------
</R>


                                     A-16



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASAP III - Prospectus (continued)

<R>
     SUB-ACCOUNT               2005       2004     2003    2002   2001  2000
     ------------------------------------------------------------------------
     ProFund VP -- OTC (2001)
        With No Optional Benefits
        BOP Unit Value           $5.44      $5.07      --  $5.77     --
        EOP Unit Value            5.38       5.44   $5.07     --  $5.77    --
        Number of Units        234,956    293,311 257,947     --    -0-    --
        With LT5, HDV, and EBP
        BOP Unit Value              --         --      --     --     --
        EOP Unit Value          $10.59         --      --     --     --    --
        Number of Units             --         --      --     --     --    --
     ------------------------------------------------------------------------
     ProFund VP -- Short OTC (2002)
        With No Optional Benefits
        BOP Unit Value           $5.99      $6.83  $11.03     --     --
        EOP Unit Value            5.97       5.99    6.83 $11.03     --    --
        Number of Units         77,757     77,280  40,617    934     --    --
        With LT5, HDV, and EBP
        BOP Unit Value              --         --      --     --     --
        EOP Unit Value           $9.17         --      --     --     --    --
        Number of Units             --         --      --     --     --    --
     ------------------------------------------------------------------------
     ProFund VP -- UltraOTC (1999)
        With No Optional Benefits
        BOP Unit Value           $0.87      $0.77      --  $1.25  $4.06
        EOP Unit Value            0.82       0.87   $0.77     --   1.25 $4.06
        Number of Units      7,044,313  6,405,048 890,270     -- 58,556 3,787
        With LT5, HDV, and EBP
        BOP Unit Value              --         --      --     --     --
        EOP Unit Value          $11.08         --      --     --     --    --
        Number of Units             --         --      --     --     --    --
     ------------------------------------------------------------------------
     ProFund VP -- Mid-Cap Value (2002)
        With No Optional Benefits
        BOP Unit Value          $11.80     $10.30      --     --     --
        EOP Unit Value           12.68      11.80  $10.30     --     --    --
        Number of Units         86,401     87,968  59,964     --     --    --
        With LT5, HDV, and EBP
        BOP Unit Value              --         --      --     --     --
        EOP Unit Value          $10.63         --      --     --     --    --
        Number of Units             --         --      --     --     --    --
     ------------------------------------------------------------------------
     ProFund VP -- Mid-Cap Growth (2002)
        With No Optional Benefits
        BOP Unit Value          $10.70      $9.75      --     --     --
        EOP Unit Value           11.75      10.70   $9.75     --     --    --
        Number of Units        181,173     80,520  24,107     --     --    --
        With LT5, HDV, and EBP
        BOP Unit Value              --         --      --     --     --
        EOP Unit Value          $10.79         --      --     --     --    --
        Number of Units             --         --      --     --     --    --
     ------------------------------------------------------------------------
</R>


                                     A-17




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASAP III - Prospectus (continued)

<R>
          SUB-ACCOUNT               2005      2004    2003   2002 2001 2000
          -----------------------------------------------------------------
          ProFund VP -- UltraMid-Cap (2002)
             With No Optional Benefits
             BOP Unit Value         $12.13     $9.62      --  --   --
             EOP Unit Value          14.12     12.13   $9.62  --   --   --
             Number of Units       150,869   115,073  34,556  --   --   --
             With LT5, HDV, and EBP
             BOP Unit Value             --        --      --  --   --
             EOP Unit Value         $11.42        --      --  --   --   --
             Number of Units            --        --      --  --   --   --
          -----------------------------------------------------------------
          ProFund VP -- Small-Cap Value (2002)
             With No Optional Benefits
             BOP Unit Value         $11.22     $9.46      --  --   --
             EOP Unit Value          11.52     11.22   $9.46  --   --   --
             Number of Units        53,564   123,988 105,751  --   --   --
             With LT5, HDV, and EBP
             BOP Unit Value             --        --      --  --   --
             EOP Unit Value         $10.33        --      --  --   --   --
             Number of Units            --        --      --  --   --   --
          -----------------------------------------------------------------
          ProFund VP -- Small-Cap Growth (2002)
             With No Optional Benefits
             BOP Unit Value         $12.11    $10.23      --  --   --
             EOP Unit Value          12.86     12.11  $10.23  --   --   --
             Number of Units       341,834   237,000  65,882  --   --   --
             With LT5, HDV, and EBP
             BOP Unit Value             --        --      --  --   --
             EOP Unit Value         $10.51        --      --  --   --   --
             Number of Units            --        --      --  --   --   --
          -----------------------------------------------------------------
          ProFund VP Large-Cap Growth
             With No Optional Benefits
             BOP Unit Value             --        --      --  --   --
             EOP Unit Value         $10.35        --      --  --   --   --
             Number of Units        98,334        --      --  --   --   --
             With LT5, HDV, and EBP
             BOP Unit Value             --        --      --  --   --
             EOP Unit Value         $10.02        --      --  --   --   --
             Number of Units            --        --      --  --   --   --
          -----------------------------------------------------------------
          ProFund VP Large-Cap Value
             With No Optional Benefits
             BOP Unit Value         $10.37        --      --  --   --
             EOP Unit Value          10.55    $10.37      --  --   --   --
             Number of Units       131,175     3,839      --  --   --   --
             With LT5, HDV, and EBP
             BOP Unit Value             --        --      --  --   --
             EOP Unit Value         $10.23        --      --  --   --   --
             Number of Units            --        --      --  --   --   --
          -----------------------------------------------------------------
</R>


                                     A-18



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASAP III - Prospectus (continued)

<R>
        SUB-ACCOUNT                2005      2004      2003   2002  2001  2000
        -----------------------------------------------------------------------
        ProFund VP Short Mid-Cap
           With No Optional Benefits
           BOP Unit Value           $9.70        --       --     --    --
           EOP Unit Value            8.67     $9.70       --     --    --    --
           Number of Units            975       571       --     --    --    --
           With LT5, HDV, and EBP
           BOP Unit Value              --        --       --     --    --
           EOP Unit Value           $8.97        --       --     --    --    --
           Number of Units             --        --       --     --    --    --
        -----------------------------------------------------------------------
        ProFund VP Short Small-Cap
           With No Optional Benefits
           BOP Unit Value           $9.55        --       --     --    --
           EOP Unit Value            9.15     $9.55       --     --    --    --
           Number of Units         11,578     7,859       --     --    --    --
           With LT5, HDV, and EBP
           BOP Unit Value              --        --       --     --    --
           EOP Unit Value           $9.20        --       --     --    --    --
           Number of Units             --        --       --     --    --    --
        -----------------------------------------------------------------------
        ProFund VP -- UltraSmall-Cap (1999)
           With No Optional Benefits
           BOP Unit Value          $12.28     $9.49    $4.82   $8.5 $9.32
           EOP Unit Value           12.10     12.28     9.49   4.82   8.5 $9.32
           Number of Units         52,922   143,175   60,051    953   -0- 3,174
           With LT5, HDV, and EBP
           BOP Unit Value              --        --       --     --    --
           EOP Unit Value          $10.69        --       --     --    --    --
           Number of Units             --        --       --     --    --    --
        -----------------------------------------------------------------------
        ProFund VP -- U.S. Government Plus (2002)
           With No Optional Benefits
           BOP Unit Value          $11.91    $11.15   $11.59     --    --
           EOP Unit Value           12.83     11.91    11.15 $11.59    --    --
           Number of Units        119,421    42,782   20,058  1,005    --    --
           With LT5, HDV, and EBP
           BOP Unit Value              --        --       --     --    --
           EOP Unit Value          $10.58        --       --     --    --    --
           Number of Units             --        --       --     --    --    --
        -----------------------------------------------------------------------
        ProFund VP -- Rising Rates Opportunity (2002)
           With No Optional Benefits
           BOP Unit Value           $6.70     $7.61       --     --    --
           EOP Unit Value            6.09      6.70    $7.61     --    --    --
           Number of Units        302,975   266,169   78,428     --    --    --
           With LT5, HDV, and EBP
           BOP Unit Value              --        --       --     --    --
           EOP Unit Value           $9.11        --       --     --    --    --
           Number of Units             --        --       --     --    --    --
        -----------------------------------------------------------------------
</R>


                                     A-19




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASAP III - Prospectus (continued)

<R>
       SUB-ACCOUNT               2005      2004    2003    2002   2001   2000
       -----------------------------------------------------------------------
       Access VP High Yield
          With No Optional Benefits
          BOP Unit Value             --        --      --     --     --
          EOP Unit Value         $10.59        --      --     --     --     --
          Number of Units       299,437        --      --     --     --     --
          With LT5, HDV, and EBP
          BOP Unit Value             --        --      --     --     --
          EOP Unit Value         $10.49        --      --     --     --     --
          Number of Units            --        --      --     --     --     --
       -----------------------------------------------------------------------
       First Trust(R) 10 Uncommon Values (2000)
          With No Optional Benefits
          BOP Unit Value          $4.38     $3.99   $2.95  $4.73  $7.44
          EOP Unit Value           4.35      4.38    3.99   2.95   4.73  $7.44
          Number of Units        14,496    33,075  22,064 23,080 31,543 32,451
          With LT5, HDV, and EBP
          BOP Unit Value             --        --      --     --     --
          EOP Unit Value          $9.77        --      --     --     --     --
          Number of Units            --        --      --     --     --     --
       -----------------------------------------------------------------------
       First Trust Managed VIP
          With No Optional Benefits
          BOP Unit Value         $14.64    $13.20      --     --     --
          EOP Unit Value          15.50     14.64  $13.20     --     --     --
          Number of Units       732,182   695,591 476,951     --     --     --
          With LT5, HDV, and EBP
          BOP Unit Value             --        --      --     --     --
          EOP Unit Value         $10.47        --      --     --     --     --
          Number of Units            --        --      --     --     --     --
       -----------------------------------------------------------------------
       First Trust The Dow Target 10
          With No Optional Benefits
          BOP Unit Value         $12.35    $12.05      --     --     --
          EOP Unit Value          11.81     12.35  $12.05     --     --     --
          Number of Units        25,001    24,245  10,069     --     --     --
          With LT5, HDV, and EBP
          BOP Unit Value             --        --      --     --     --
          EOP Unit Value          $9.56        --      --     --     --     --
          Number of Units            --        --      --     --     --     --
       -----------------------------------------------------------------------
       First Trust The Dow Target Dividend
          With No Optional Benefits
          BOP Unit Value             --        --      --     --     --
          EOP Unit Value          $9.79        --      --     --     --     --
          Number of Units       290,982        --      --     --     --     --
          With LT5, HDV, and EBP
          BOP Unit Value             --        --      --     --     --
          EOP Unit Value          $9.70        --      --     --     --     --
          Number of Units            --        --      --     --     --     --
       -----------------------------------------------------------------------
</R>


                                     A-20




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

APEX II - Prospectus

<R>
     SUB-ACCOUNT                                     2005    2004 2003 2002
     ----------------------------------------------------------------------
     AST Aggressive Asset Allocation Portfolio
        With No Optional Benefits
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                $10.00  --   --   --
        Number of Units                              649,829  --   --   --
        With LT5, HDV, and EBP
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                 $9.99  --   --   --
        Number of Units                                   --  --   --   --
     ----------------------------------------------------------------------
     AST Capital Growth Asset Allocation Portfolio
        With No Optional Benefits
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                $10.01  --   --   --
        Number of Units                            2,586,012  --   --   --
        With LT5, HDV, and EBP
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                $10.00  --   --   --
        Number of Units                                   --  --   --   --
     ----------------------------------------------------------------------
     AST Balanced Asset Allocation Portfolio
        With No Optional Benefits
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                $10.02  --   --   --
        Number of Units                            2,726,484  --   --   --
        With LT5, HDV, and EBP
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                $10.01  --   --   --
        Number of Units                                   --  --   --   --
     ----------------------------------------------------------------------
     AST Conservative Asset Allocation Portfolio
        With No Optional Benefits
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                $10.03  --   --   --
        Number of Units                              685,724  --   --   --
        With LT5, HDV, and EBP
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                $10.02  --   --   --
        Number of Units                                   --  --   --   --
     ----------------------------------------------------------------------
     AST Preservation Asset Allocation Portfolio
        With No Optional Benefits
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                $10.04  --   --   --
        Number of Units                              115,215  --   --   --
        With LT5, HDV, and EBP
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                $10.03  --   --   --
        Number of Units                                   --  --   --   --
     ----------------------------------------------------------------------
</R>


                                     A-22



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


APEX II - Prospectus (continued)

<R>
SUB-ACCOUNT                                      2005       2004      2003      2002
---------------------------------------------------------------------------------------
AST JP Morgan International Equity
   With No Optional Benefits
   BOP Unit Value                                 $12.67     $11.00     $8.56
   EOP Unit Value                                 $13.84     $12.67    $11.00     $8.56
   Number of Units                             5,621,836  3,227,381 2,415,394 2,569,506
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --        --
   EOP Unit Value                                 $10.53         --        --        --
   Number of Units                                    --         --        --        --
---------------------------------------------------------------------------------------
AST William Blair International Growth (1997)
   With No Optional Benefits
   BOP Unit Value                                 $15.30     $13.39     $9.72
   EOP Unit Value                                 $17.54     $15.30    $13.39     $9.72
   Number of Units                            12,141,522 11,265,469 5,547,558   835,523
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --        --
   EOP Unit Value                                 $11.16         --        --        --
   Number of Units                                    --         --        --        --
---------------------------------------------------------------------------------------
AST LSV International Value
   With No Optional Benefits
   BOP Unit Value                                 $12.84     $10.79     $8.19
   EOP Unit Value                                 $14.36     $12.84    $10.79     $8.19
   Number of Units                             2,013,544  1,897,469 1,201,268   269,995
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --        --
   EOP Unit Value                                 $10.59         --        --        --
   Number of Units                                    --         --        --        --
---------------------------------------------------------------------------------------
AST MFS Global Equity (1999)
   With No Optional Benefits
   BOP Unit Value                                 $13.16     $11.30     $9.04
   EOP Unit Value                                 $13.92     $13.16    $11.30     $9.04
   Number of Units                             1,907,776  2,276,801 1,393,001   969,509
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --        --
   EOP Unit Value                                 $10.36         --        --        --
   Number of Units                                    --         --        --        --
---------------------------------------------------------------------------------------
AST Small-Cap Growth
   With No Optional Benefits
   BOP Unit Value                                  $9.05      $9.89     $6.92
   EOP Unit Value                                  $9.04      $9.05     $9.89     $6.92
   Number of Units                             2,134,730  2,242,129 3,292,593 1,970,250
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --        --
   EOP Unit Value                                 $10.31         --        --        --
   Number of Units                                    --         --        --        --
---------------------------------------------------------------------------------------
</R>

                                     A-23




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

APEX II - Prospectus (continued)

<R>
SUB-ACCOUNT                                 2005       2004       2003      2002
-----------------------------------------------------------------------------------
AST DeAM Small-Cap Growth (1999)
   With No Optional Benefits
   BOP Unit Value                            $11.98     $11.13      $7.67
   EOP Unit Value                            $11.83     $11.98     $11.13     $7.67
   Number of Units                        1,385,430  1,618,719  1,682,193   639,695
   With LT5, HDV, and EBP
   BOP Unit Value                                --         --         --
   EOP Unit Value                            $10.20         --         --        --
   Number of Units                               --         --         --        --
-----------------------------------------------------------------------------------
AST Federated Aggressive Growth (2000)
   With No Optional Benefits
   BOP Unit Value                            $15.42     $12.74      $7.64
   EOP Unit Value                            $16.60     $15.42     $12.74     $7.64
   Number of Units                        5,464,856  4,808,453  3,085,373 1,255,415
   With LT5, HDV, and EBP
   BOP Unit Value                                --         --         --
   EOP Unit Value                            $10.84         --         --        --
   Number of Units                               --         --         --        --
-----------------------------------------------------------------------------------
AST Goldman Sachs Small-Cap Value (1997)
   With No Optional Benefits
   BOP Unit Value                            $15.19     $12.85      $9.26
   EOP Unit Value                            $15.68     $15.19     $12.85     $9.26
   Number of Units                        1,243,642  1,541,896  1,504,296 1,492,775
   With LT5, HDV, and EBP
   BOP Unit Value                                --         --         --
   EOP Unit Value                            $10.44         --         --        --
   Number of Units                               --         --         --        --
-----------------------------------------------------------------------------------
AST Small-Cap Value (1997)
   With No Optional Benefits
   BOP Unit Value                            $14.22     $12.42      $9.30
   EOP Unit Value                            $14.91     $14.22     $12.42     $9.30
   Number of Units                       11,285,282 10,785,030 10,183,346 6,141,523
   With LT5, HDV, and EBP
   BOP Unit Value                                --         --         --
   EOP Unit Value                            $10.53         --         --        --
   Number of Units                               --         --         --        --
-----------------------------------------------------------------------------------
AST DeAM Small-Cap Value (2002)
   With No Optional Benefits
   BOP Unit Value                            $12.99     $10.81      $7.66
   EOP Unit Value                            $12.92     $12.99     $10.81     $7.66
   Number of Units                        2,106,236  2,143,020  1,134,865   423,387
   With LT5, HDV, and EBP
   BOP Unit Value                                --         --         --
   EOP Unit Value                             $9.90         --         --        --
   Number of Units                               --         --         --        --
-----------------------------------------------------------------------------------
</R>


                                     A-24



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


APEX II - Prospectus (continued)

<R>
SUB-ACCOUNT                                           2005       2004      2003      2002
--------------------------------------------------------------------------------------------
AST Goldman Sachs Mid-Cap Growth (2000)
   With No Optional Benefits
   BOP Unit Value                                      $11.80     $10.31     $7.97
   EOP Unit Value                                      $12.16     $11.80    $10.31     $7.97
   Number of Units                                  5,391,424  4,375,813 3,027,057 1,273,118
   With LT5, HDV, and EBP
   BOP Unit Value                                          --         --        --
   EOP Unit Value                                      $10.46         --        --        --
   Number of Units                                         --         --        --        --
--------------------------------------------------------------------------------------------
AST Neuberger Berman Mid-Cap Growth (1994)
   With No Optional Benefits
   BOP Unit Value                                      $10.86      $9.51     $7.41
   EOP Unit Value                                      $12.12     $10.86     $9.51     $7.41
   Number of Units                                  5,728,446  4,715,301 3,415,318 2,175,250
   With LT5, HDV, and EBP
   BOP Unit Value                                          --         --        --
   EOP Unit Value                                      $11.21         --        --        --
   Number of Units                                         --         --        --        --
--------------------------------------------------------------------------------------------
AST Neuberger Berman Mid-Cap Value (1993)
   With No Optional Benefits
   BOP Unit Value                                      $14.51     $12.01     $8.96
   EOP Unit Value                                      $15.99     $14.51    $12.01     $8.96
   Number of Units                                 12,260,007 11,461,684 8,530,129 5,118,558
   With LT5, HDV, and EBP
   BOP Unit Value                                          --         --        --
   EOP Unit Value                                      $10.76         --        --        --
   Number of Units                                         --         --        --        --
--------------------------------------------------------------------------------------------
AST Alger All-Cap Growth (2000)
 (merged into AST Neuberger Berman Mid-Cap Growth)
   With No Optional Benefits
   BOP Unit Value                                       $9.67      $9.07     $6.80
   EOP Unit Value                                      $11.10      $9.67     $9.07     $6.80
   Number of Units                                         --  1,798,457 2,002,166   658,419
   With LT5, HDV, and EBP
   BOP Unit Value                                          --         --        --
   EOP Unit Value                                      $11.59         --        --        --
   Number of Units                                         --         --        --        --
--------------------------------------------------------------------------------------------
AST Mid-Cap Value (2000)
 (formerly AST Gabelli All-Cap Value)
   With No Optional Benefits
   BOP Unit Value                                      $12.38     $10.91     $8.17
   EOP Unit Value                                      $12.83     $12.38    $10.91     $8.17
   Number of Units                                  1,988,252  2,587,064 2,513,413 1,200,225
   With LT5, HDV, and EBP
   BOP Unit Value                                          --         --        --
   EOP Unit Value                                      $10.24         --        --        --
   Number of Units                                         --         --        --        --
--------------------------------------------------------------------------------------------
</R>

                                     A-25




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

APEX II - Prospectus (continued)

<R>
SUB-ACCOUNT                                     2005       2004       2003       2002
----------------------------------------------------------------------------------------
AST T. Rowe Price Natural Resources (1995)
   With No Optional Benefits
   BOP Unit Value                                $16.25     $12.59      $9.59
   EOP Unit Value                                $21.00     $16.25     $12.59      $9.59
   Number of Units                            3,677,614  2,040,188  2,011,627    724,670
   With LT5, HDV, and EBP
   BOP Unit Value                                    --         --         --
   EOP Unit Value                                $11.61         --         --         --
   Number of Units                                   --         --         --         --
----------------------------------------------------------------------------------------
AST T. Rowe Price Large-Cap Growth
 (formerly AST AllianceBernstein Large-Cap Growth)
   With No Optional Benefits
   BOP Unit Value                                 $9.44      $9.08      $7.46
   EOP Unit Value                                $10.81      $9.44      $9.08      $7.46
   Number of Units                            3,925,740  2,378,881  2,098,873  1,869,353
   With LT5, HDV, and EBP
   BOP Unit Value                                    --         --         --
   EOP Unit Value                                $11.98         --         --         --
   Number of Units                                   --         --         --         --
----------------------------------------------------------------------------------------
AST MFS Growth (1999)
   With No Optional Benefits
   BOP Unit Value                                 $9.97      $9.16      $7.58
   EOP Unit Value                                $10.43      $9.97      $9.16      $7.58
   Number of Units                            5,915,443  4,529,834  4,784,269  2,930,432
   With LT5, HDV, and EBP
   BOP Unit Value                                    --         --         --
   EOP Unit Value                                $10.64         --         --         --
   Number of Units                                   --         --         --         --
----------------------------------------------------------------------------------------
AST Marsico Capital Growth (1997)
   With No Optional Benefits
   BOP Unit Value                                $12.26     $10.78      $8.32
   EOP Unit Value                                $12.88     $12.26     $10.78      $8.32
   Number of Units                           32,140,125 28,117,321 20,138,164 10,144,317
   With LT5, HDV, and EBP
   BOP Unit Value                                    --         --         --
   EOP Unit Value                                $10.78         --         --         --
   Number of Units                                   --         --         --         --
----------------------------------------------------------------------------------------
AST Goldman Sachs Concentrated Growth (1992)
   With No Optional Benefits
   BOP Unit Value                                 $9.64      $9.45      $7.67
   EOP Unit Value                                 $9.80      $9.64      $9.45      $7.67
   Number of Units                            2,531,900  2,785,100  2,053,023  1,349,939
   With LT5, HDV, and EBP
   BOP Unit Value                                    --         --         --
   EOP Unit Value                                $10.64         --         --         --
   Number of Units                                   --         --         --         --
----------------------------------------------------------------------------------------
</R>


                                     A-26



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


APEX II - Prospectus (continued)

<R>
SUB-ACCOUNT                                      2005      2004      2003      2002
--------------------------------------------------------------------------------------
AST DeAM Large-Cap Value (2000)
   With No Optional Benefits
   BOP Unit Value                                 $12.53    $10.78     $8.66
   EOP Unit Value                                 $13.47    $12.53    $10.78     $8.66
   Number of Units                             2,585,881 2,351,197 1,072,256   664,649
   With LT5, HDV, and EBP
   BOP Unit Value                                     --        --        --
   EOP Unit Value                                 $10.59        --        --        --
   Number of Units                                    --        --        --        --
--------------------------------------------------------------------------------------
AST AllianceBernstein Growth + Value (2001)
 (merged into AST AllianceBernstein Managed Index 500)
   With No Optional Benefits
   BOP Unit Value                                 $10.72     $9.91     $7.99
   EOP Unit Value                                 $11.86    $10.72     $9.91     $7.99
   Number of Units                                    -- 1,620,391 1,387,072   965,912
   With LT5, HDV, and EBP
   BOP Unit Value                                     --        --        --
   EOP Unit Value                                 $11.21        --        --        --
   Number of Units                                    --        --        --        --
--------------------------------------------------------------------------------------
AST AllianceBernstein Core Value (2001)
   With No Optional Benefits
   BOP Unit Value                                 $12.39    $11.06     $8.76
   EOP Unit Value                                 $12.86    $12.39    $11.06     $8.76
   Number of Units                             4,311,857 4,643,022 3,621,862 6,005,922
   With LT5, HDV, and EBP
   BOP Unit Value                                     --        --        --
   EOP Unit Value                                 $10.20        --        --        --
   Number of Units                                    --        --        --        --
--------------------------------------------------------------------------------------
AST Cohen & Steers Real Estate (1998)
   With No Optional Benefits
   BOP Unit Value                                 $18.49    $13.63    $10.08
   EOP Unit Value                                 $20.88    $18.49    $13.63    $10.08
   Number of Units                             3,749,124 4,080,179 3,097,315 1,563,489
   With LT5, HDV, and EBP
   BOP Unit Value                                     --        --        --
   EOP Unit Value                                 $11.88        --        --        --
   Number of Units                                    --        --        --        --
--------------------------------------------------------------------------------------
AST AllianceBernstein Managed Index 500 (1998)
   With No Optional Benefits
   BOP Unit Value                                 $11.07    $10.23     $8.17
   EOP Unit Value                                 $11.27    $11.07    $10.23     $8.17
   Number of Units                             6,774,078 6,845,372 5,442,511 3,662,406
   With LT5, HDV, and EBP
   BOP Unit Value                                     --        --        --
   EOP Unit Value                                 $10.28        --        --        --
   Number of Units                                    --        --        --        --
--------------------------------------------------------------------------------------
</R>

                                     A-27




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

APEX II - Prospectus (continued)

<R>
SUB-ACCOUNT                                         2005       2004       2003      2002
-------------------------------------------------------------------------------------------
AST American Century Income & Growth (1997)
   With No Optional Benefits
   BOP Unit Value                                    $11.57     $10.45      $8.25
   EOP Unit Value                                    $11.90     $11.57     $10.45     $8.25
   Number of Units                                4,205,655  4,670,846  2,115,438 1,751,136
   With LT5, HDV, and EBP
   BOP Unit Value                                        --         --         --
   EOP Unit Value                                    $10.22         --         --        --
   Number of Units                                       --         --         --        --
-------------------------------------------------------------------------------------------
AST AllianceBernstein Growth & Income (1992)
   With No Optional Benefits
   BOP Unit Value                                    $11.46     $10.50      $8.06
   EOP Unit Value                                    $11.81     $11.46     $10.50     $8.06
   Number of Units                               31,190,346 25,850,506 21,264,670 6,667,373
   With LT5, HDV, and EBP
   BOP Unit Value                                        --         --         --
   EOP Unit Value                                    $10.15         --         --        --
   Number of Units                                       --         --         --        --
-------------------------------------------------------------------------------------------
AST Large-Cap Value
 (formerly AST Hotchkis & Wiley Large-Cap Value)
   With No Optional Benefits
   BOP Unit Value                                    $11.17      $9.83      $8.34
   EOP Unit Value                                    $11.69     $11.17      $9.83     $8.34
   Number of Units                                5,245,458  3,717,848  2,647,064 2,110,071
   With LT5, HDV, and EBP
   BOP Unit Value                                        --         --         --
   EOP Unit Value                                    $10.44         --         --        --
   Number of Units                                       --         --         --        --
-------------------------------------------------------------------------------------------
AST Global Allocation (1993)
   With No Optional Benefits
   BOP Unit Value                                    $11.19     $10.24      $8.71
   EOP Unit Value                                    $11.77     $11.19     $10.24     $8.71
   Number of Units                                1,055,033  1,061,887    898,161   847,517
   With LT5, HDV, and EBP
   BOP Unit Value                                        --         --         --
   EOP Unit Value                                    $10.50         --         --        --
   Number of Units                                       --         --         --        --
-------------------------------------------------------------------------------------------
AST American Century Strategic Balanced (1997)
   With No Optional Benefits
   BOP Unit Value                                    $11.46     $10.69      $9.14
   EOP Unit Value                                    $11.79     $11.46     $10.69     $9.14
   Number of Units                                2,294,531  2,335,598  2,045,205 1,126,058
   With LT5, HDV, and EBP
   BOP Unit Value                                        --         --         --
   EOP Unit Value                                    $10.20         --         --        --
   Number of Units                                       --         --         --        --
-------------------------------------------------------------------------------------------
</R>


                                     A-28



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


APEX II - Prospectus (continued)

<R>
SUB-ACCOUNT                                      2005       2004       2003       2002
-----------------------------------------------------------------------------------------
AST T. Rowe Price Asset Allocation (1994)
   With No Optional Benefits
   BOP Unit Value                                 $12.13     $11.09      $9.09
   EOP Unit Value                                 $12.49     $12.13     $11.09      $9.09
   Number of Units                             4,192,626  3,551,315  2,243,566    921,329
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                 $10.24         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
AST T. Rowe Price Global Bond (1994)
   With No Optional Benefits
   BOP Unit Value                                 $13.45     $12.59     $11.34
   EOP Unit Value                                 $12.64     $13.45     $12.59     $11.34
   Number of Units                             6,261,824  4,717,822  2,962,471  1,739,313
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                  $9.34         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
AST High Yield
 (formerly AST Goldman Sachs High Yield Bond)
   With No Optional Benefits
   BOP Unit Value                                 $12.69     $11.61      $9.71
   EOP Unit Value                                 $12.62     $12.69     $11.61      $9.71
   Number of Units                             9,658,908 13,717,125 12,201,163  5,592,940
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                  $9.75         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
AST Lord Abbett Bond-Debenture (2000)
   With No Optional Benefits
   BOP Unit Value                                 $12.26     $11.61      $9.94
   EOP Unit Value                                 $12.20     $12.26     $11.61      $9.94
   Number of Units                            12,427,806  8,369,008  7,751,236  4,146,530
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                  $9.84         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
AST PIMCO Total Return Bond (1994)
   With No Optional Benefits
   BOP Unit Value                                 $11.31     $10.95     $10.57
   EOP Unit Value                                 $11.40     $11.31     $10.95     $10.57
   Number of Units                            22,436,395 33,208,749 26,287,388 20,544,075
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                 $10.04         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
</R>

                                     A-29




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

APEX II - Prospectus (continued)

<R>
SUB-ACCOUNT                                      2005       2004       2003       2002
-----------------------------------------------------------------------------------------
AST PIMCO Limited Maturity Bond (1995)
   With No Optional Benefits
   BOP Unit Value                                 $10.55     $10.51     $10.34
   EOP Unit Value                                 $10.54     $10.55     $10.51     $10.34
   Number of Units                            28,031,653 21,299,789 15,242,856 11,274,642
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                  $9.94         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
AST Money Market (1992)
   With No Optional Benefits
   BOP Unit Value                                  $9.78      $9.86      $9.96
   EOP Unit Value                                  $9.88      $9.78      $9.86      $9.96
   Number of Units                            42,442,274 29,870,576 32,730,501 36,255,772
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                  $9.99         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
SP William Blair International Growth
   With No Optional Benefits
   BOP Unit Value                                 $10.53         --         --
   EOP Unit Value                                 $12.05     $10.53         --         --
   Number of Units                               672,243    269,671         --         --
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                 $11.18         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
Gartmore Variable Investment Trust
 -- GVIT Developing Markets (1996)
   With No Optional Benefits
   BOP Unit Value                                 $16.02     $13.60      $8.66
   EOP Unit Value                                 $20.72     $16.02     $13.60      $8.66
   Number of Units                             3,395,891  2,103,950  1,763,660    283,466
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                 $11.93         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
Wells Fargo Advantage VT Equity Income (1999)
 (formerly WFVT Advantage Equity Income)
   With No Optional Benefits
   BOP Unit Value                                 $11.18     $10.23      $8.25
   EOP Unit Value                                 $11.59     $11.18     $10.23      $8.25
   Number of Units                               534,649    590,808    314,757    196,720
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                 $10.08         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
</R>


                                     A-30



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


APEX II - Prospectus (continued)

<R>
 SUB-ACCOUNT                                   2005     2004    2003    2002
 -----------------------------------------------------------------------------
 AIM V.I. -- Dynamics (1999)
    With No Optional Benefits
    BOP Unit Value                              $10.72   $9.61   $7.09
    EOP Unit Value                              $11.67  $10.72   $9.61   $7.09
    Number of Units                            602,064 668,032 889,464 543,762
    With LT5, HDV, and EBP
    BOP Unit Value                                  --      --      --
    EOP Unit Value                              $10.80      --      --      --
    Number of Units                                 --      --      --      --
 -----------------------------------------------------------------------------
 AIM V.I. -- Technology (1999)
    With No Optional Benefits
    BOP Unit Value                               $8.09   $7.87   $5.50
    EOP Unit Value                               $8.13   $8.09   $7.87   $5.50
    Number of Units                            453,391 512,424 578,651 293,307
    With LT5, HDV, and EBP
    BOP Unit Value                                  --      --      --
    EOP Unit Value                              $10.60      --      --      --
    Number of Units                                 --      --      --      --
 -----------------------------------------------------------------------------
 AIM V.I. -- Global Health Care (1999)
  (formerly AIM V.I. -- Health Sciences)
    With No Optional Benefits
    BOP Unit Value                              $10.64  $10.05   $8.00
    EOP Unit Value                              $11.31  $10.64  $10.05   $8.00
    Number of Units                          1,131,375 937,586 698,364 475,873
    With LT5, HDV, and EBP
    BOP Unit Value                                  --      --      --
    EOP Unit Value                              $11.04      --      --      --
    Number of Units                                 --      --      --      --
 -----------------------------------------------------------------------------
 AIM V.I. -- Financial Services (1999)
    With No Optional Benefits
    BOP Unit Value                              $11.94  $11.17   $8.76
    EOP Unit Value                              $12.43  $11.94  $11.17   $8.76
    Number of Units                          1,042,992 585,185 607,265 366,258
    With LT5, HDV, and EBP
    BOP Unit Value                                  --      --      --
    EOP Unit Value                              $10.62      --      --      --
    Number of Units                                 --      --      --      --
 -----------------------------------------------------------------------------
 Evergreen VA -- International Equity (2000)
    With No Optional Benefits
    BOP Unit Value                              $13.66  $11.65   $8.15
    EOP Unit Value                              $15.59  $13.66  $11.65   $8.15
    Number of Units                            689,816 414,631 189,143 113,389
    With LT5, HDV, and EBP
    BOP Unit Value                                  --      --      --
    EOP Unit Value                              $10.88      --      --      --
    Number of Units                                 --      --      --      --
 -----------------------------------------------------------------------------
</R>

                                     A-31




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

APEX II - Prospectus (continued)

<R>
  SUB-ACCOUNT                             2005      2004      2003     2002
  ---------------------------------------------------------------------------
  Evergreen VA -- Special Equity (1999)
   (merged into Evergreen VA Growth)
     With No Optional Benefits
     BOP Unit Value                        $11.58    $11.12     $7.44
     EOP Unit Value                        $10.31    $11.58    $11.12   $7.44
     Number of Units                           --   702,642   815,621 127,728
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                         $9.26        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
  Evergreen VA -- Omega (2000)
     With No Optional Benefits
     BOP Unit Value                        $11.29    $10.71     $7.78
     EOP Unit Value                        $11.53    $11.29    $10.71   $7.78
     Number of Units                      281,775   570,123   404,789  39,943
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                        $10.50        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
  Evergreen VA Growth Fund
     With No Optional Benefits
     BOP Unit Value                            --
     EOP Unit Value                        $11.44        --
     Number of Units                      606,614        --
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                        $11.33        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
  ProFund VP -- Europe 30 (1999)
     With No Optional Benefits
     BOP Unit Value                        $12.17    $10.83     $7.93
     EOP Unit Value                        $12.94    $12.17    $10.83   $7.93
     Number of Units                    1,133,421 1,812,435 2,116,400 292,396
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                        $10.41        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
  ProFund VP -- Asia 30 (2002)
     With No Optional Benefits
     BOP Unit Value                        $12.30    $12.57     $7.75
     EOP Unit Value                        $14.45    $12.30    $12.57   $7.75
     Number of Units                    1,723,105   896,010   942,605 281,993
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                        $11.10        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
</R>


                                     A-32



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


APEX II - Prospectus (continued)

<R>
   SUB-ACCOUNT                              2005     2004     2003     2002
   --------------------------------------------------------------------------
   ProFund VP -- Japan (2002)
      With No Optional Benefits
      BOP Unit Value                          $9.55   $9.03     $7.24
      EOP Unit Value                         $13.31   $9.55     $9.03   $7.24
      Number of Units                     3,413,955 710,879   426,718  65,845
      With LT5, HDV, and EBP
      BOP Unit Value                             --      --        --
      EOP Unit Value                         $13.38      --        --      --
      Number of Units                            --      --        --      --
   --------------------------------------------------------------------------
   ProFund VP -- Banks (2002)
      With No Optional Benefits
      BOP Unit Value                         $11.98  $10.90     $8.56
      EOP Unit Value                         $11.77  $11.98    $10.90   $8.56
      Number of Units                       351,876 229,711    93,067 101,136
      With LT5, HDV, and EBP
      BOP Unit Value                             --      --        --
      EOP Unit Value                         $10.10      --        --      --
      Number of Units                            --      --        --      --
   --------------------------------------------------------------------------
   ProFund VP -- Basic Materials (2002)
      With No Optional Benefits
      BOP Unit Value                         $11.87  $10.95     $8.46
      EOP Unit Value                         $11.96  $11.87    $10.95   $8.46
      Number of Units                       681,692 529,237 1,512,864  76,331
      With LT5, HDV, and EBP
      BOP Unit Value                             --      --        --
      EOP Unit Value                          $9.48      --        --      --
      Number of Units                            --      --        --      --
   --------------------------------------------------------------------------
   ProFund VP -- Biotechnology (2001)
      With No Optional Benefits
      BOP Unit Value                         $10.52   $9.75     $7.09
      EOP Unit Value                         $12.34  $10.52     $9.75   $7.09
      Number of Units                       697,686 757,678   208,971 130,082
      With LT5, HDV, and EBP
      BOP Unit Value                             --      --        --
      EOP Unit Value                         $13.48      --        --      --
      Number of Units                            --      --        --      --
   --------------------------------------------------------------------------
   ProFund VP -- Consumer Services (2002)
      With No Optional Benefits
      BOP Unit Value                          $9.56   $9.04     $7.25
      EOP Unit Value                          $8.97   $9.56     $9.04   $7.25
      Number of Units                        86,431 430,620   136,269 128,022
      With LT5, HDV, and EBP
      BOP Unit Value                             --      --        --
      EOP Unit Value                          $9.66      --        --      --
      Number of Units                            --      --        --      --
   --------------------------------------------------------------------------
</R>

                                     A-33




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

APEX II - Prospectus (continued)

<R>
   SUB-ACCOUNT                           2005      2004      2003     2002
   -------------------------------------------------------------------------
   ProFund VP -- Consumer Goods (2002)
      With No Optional Benefits
      BOP Unit Value                      $10.36     $9.64     $8.28
      EOP Unit Value                      $10.15    $10.36     $9.64   $8.28
      Number of Units                    161,037   369,007    58,425 148,446
      With LT5, HDV, and EBP
      BOP Unit Value                          --        --        --
      EOP Unit Value                       $9.73        --        --      --
      Number of Units                         --        --        --      --
   -------------------------------------------------------------------------
   ProFund VP -- Oil & Gas (2001)
      With No Optional Benefits
      BOP Unit Value                      $13.33    $10.48     $8.71
      EOP Unit Value                      $17.22    $13.33    $10.48   $8.71
      Number of Units                  2,573,776 1,856,882 1,225,844 299,833
      With LT5, HDV, and EBP
      BOP Unit Value                          --        --        --
      EOP Unit Value                      $10.92        --        --      --
      Number of Units                         --        --        --      --
   -------------------------------------------------------------------------
   ProFund VP -- Financials (2001)
      With No Optional Benefits
      BOP Unit Value                      $12.19    $11.23     $8.85
      EOP Unit Value                      $12.46    $12.19    $11.23   $8.85
      Number of Units                    616,873   553,342   398,159 221,377
      With LT5, HDV, and EBP
      BOP Unit Value                          --        --        --
      EOP Unit Value                      $10.53        --        --      --
      Number of Units                         --        --        --      --
   -------------------------------------------------------------------------
   ProFund VP -- Health Care (2001)
      With No Optional Benefits
      BOP Unit Value                       $9.23     $9.17     $7.94
      EOP Unit Value                       $9.63     $9.23     $9.17   $7.94
      Number of Units                  2,175,821 1,318,525   707,449 388,508
      With LT5, HDV, and EBP
      BOP Unit Value                          --        --        --
      EOP Unit Value                      $10.46        --        --      --
      Number of Units                         --        --        --      --
   -------------------------------------------------------------------------
   ProFund VP -- Industrials (2002)
      With No Optional Benefits
      BOP Unit Value                      $11.15    $10.01     $7.93
      EOP Unit Value                      $11.23    $11.15    $10.01   $7.93
      Number of Units                    211,677   253,411   318,339  12,642
      With LT5, HDV, and EBP
      BOP Unit Value                          --        --        --
      EOP Unit Value                      $10.06        --        --      --
      Number of Units                         --        --        --      --
   -------------------------------------------------------------------------
</R>


                                     A-34



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


APEX II - Prospectus (continued)

<R>
  SUB-ACCOUNT                            2005      2004      2003      2002
  ----------------------------------------------------------------------------
  ProFund VP -- Internet (2002)
     With No Optional Benefits
     BOP Unit Value                       $17.89    $15.00     $8.57
     EOP Unit Value                       $18.90    $17.89    $15.00     $8.57
     Number of Units                     467,320   992,879   206,876   306,572
     With LT5, HDV, and EBP
     BOP Unit Value                           --        --        --
     EOP Unit Value                       $12.71        --        --        --
     Number of Units                          --        --        --        --
  ----------------------------------------------------------------------------
  ProFund VP -- Pharmaceuticals (2002)
     With No Optional Benefits
     BOP Unit Value                        $7.93     $8.89     $8.56
     EOP Unit Value                        $7.51     $7.93     $8.89     $8.56
     Number of Units                     515,768   527,336   266,978   136,559
     With LT5, HDV, and EBP
     BOP Unit Value                           --        --        --
     EOP Unit Value                        $9.44        --        --        --
     Number of Units                          --        --        --        --
  ----------------------------------------------------------------------------
  ProFund VP -- Precious Metals (2002)
     With No Optional Benefits
     BOP Unit Value                       $11.77    $13.29     $9.70
     EOP Unit Value                       $14.62    $11.77    $13.29     $9.70
     Number of Units                   2,426,530 1,479,384 1,329,806 1,175,651
     With LT5, HDV, and EBP
     BOP Unit Value                           --        --        --
     EOP Unit Value                       $12.00        --        --        --
     Number of Units                          --        --        --        --
  ----------------------------------------------------------------------------
  ProFund VP -- Real Estate (2001)
     With No Optional Benefits
     BOP Unit Value                       $16.15    $12.91     $9.86
     EOP Unit Value                       $16.96    $16.15    $12.91     $9.86
     Number of Units                     501,989 1,816,706   462,906   441,318
     With LT5, HDV, and EBP
     BOP Unit Value                           --        --        --
     EOP Unit Value                       $11.17        --        --        --
     Number of Units                          --        --        --        --
  ----------------------------------------------------------------------------
  ProFund VP -- Semiconductor (2002)
     With No Optional Benefits
     BOP Unit Value                        $7.15     $9.51     $5.14
     EOP Unit Value                        $7.64     $7.15     $9.51     $5.14
     Number of Units                     746,085   694,352   423,958    93,241
     With LT5, HDV, and EBP
     BOP Unit Value                           --        --        --
     EOP Unit Value                       $10.65        --        --        --
     Number of Units                          --        --        --        --
  ----------------------------------------------------------------------------
</R>

                                     A-35




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

APEX II - Prospectus (continued)

<R>
SUB-ACCOUNT                               2005      2004      2003      2002
-------------------------------------------------------------------------------
ProFund VP -- Technology (2001)
   With No Optional Benefits
   BOP Unit Value                           $8.48     $8.66     $6.03
   EOP Unit Value                           $8.45     $8.48     $8.66     $6.03
   Number of Units                        577,739   727,580   497,972   254,131
   With LT5, HDV, and EBP
   BOP Unit Value                              --        --        --
   EOP Unit Value                          $10.54        --        --        --
   Number of Units                             --        --        --        --
-------------------------------------------------------------------------------
ProFund VP -- Telecommunications (2001)
   With No Optional Benefits
   BOP Unit Value                           $8.19     $7.21     $7.15
   EOP Unit Value                           $7.52     $8.19     $7.21     $7.15
   Number of Units                        456,586   460,848   398,350   272,408
   With LT5, HDV, and EBP
   BOP Unit Value                              --        --        --
   EOP Unit Value                           $9.74        --        --        --
   Number of Units                             --        --        --        --
-------------------------------------------------------------------------------
ProFund VP -- Utilities (2001)
   With No Optional Benefits
   BOP Unit Value                          $11.13     $9.34     $7.83
   EOP Unit Value                          $12.37    $11.13     $9.34     $7.83
   Number of Units                      1,996,877 1,060,939   618,427   521,419
   With LT5, HDV, and EBP
   BOP Unit Value                              --        --        --
   EOP Unit Value                          $10.60        --        --        --
   Number of Units                             --        --        --        --
-------------------------------------------------------------------------------
ProFund VP -- Bull (2002)
   With No Optional Benefits
   BOP Unit Value                          $10.53     $9.84     $7.97
   EOP Unit Value                          $10.64    $10.53     $9.84     $7.97
   Number of Units                      7,846,866 8,215,357 3,563,562   954,792
   With LT5, HDV, and EBP
   BOP Unit Value                              --        --        --
   EOP Unit Value                          $10.12        --        --        --
   Number of Units                             --        --        --        --
-------------------------------------------------------------------------------
ProFund VP -- Bear (2001)
   With No Optional Benefits
   BOP Unit Value                           $7.45     $8.44    $11.38
   EOP Unit Value                           $7.23     $7.45     $8.44    $11.38
   Number of Units                      2,169,662 1,202,243 1,886,515 1,532,543
   With LT5, HDV, and EBP
   BOP Unit Value                              --        --        --
   EOP Unit Value                           $9.54        --        --        --
   Number of Units                             --        --        --        --
-------------------------------------------------------------------------------
</R>


                                     A-36



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


APEX II - Prospectus (continued)

<R>
   SUB-ACCOUNT                          2005      2004      2003      2002
   --------------------------------------------------------------------------
   ProFund VP -- Ultra Bull (2001)
      With No Optional Benefits
      BOP Unit Value                     $11.76    $10.20     $6.78
      EOP Unit Value                     $11.87    $11.76    $10.20     $6.78
      Number of Units                 1,158,025 2,817,803 1,431,345   297,435
      With LT5, HDV, and EBP
      BOP Unit Value                         --        --        --
      EOP Unit Value                     $10.25        --        --        --
      Number of Units                        --        --        --        --
   --------------------------------------------------------------------------
   ProFund VP -- OTC (2001)
      With No Optional Benefits
      BOP Unit Value                      $9.94     $9.32     $6.45
      EOP Unit Value                      $9.80     $9.94     $9.32     $6.45
      Number of Units                 2,467,486 4,885,351 4,445,234 1,346,852
      With LT5, HDV, and EBP
      BOP Unit Value                         --        --        --
      EOP Unit Value                     $10.55        --        --        --
      Number of Units                        --        --        --        --
   --------------------------------------------------------------------------
   ProFund VP -- Short OTC (2002)
      With No Optional Benefits
      BOP Unit Value                      $5.93     $6.78    $11.00
      EOP Unit Value                      $5.88     $5.93     $6.78    $11.00
      Number of Units                 2,494,108   908,064 1,535,439   433,181
      With LT5, HDV, and EBP
      BOP Unit Value                         --        --        --
      EOP Unit Value                      $9.14        --        --        --
      Number of Units                        --        --        --        --
   --------------------------------------------------------------------------
   ProFund VP -- UltraOTC (1999)
      With No Optional Benefits
      BOP Unit Value                      $7.89     $7.03     $3.53
      EOP Unit Value                      $7.47     $7.89     $7.03     $3.53
      Number of Units                 4,740,165 6,592,447 3,410,589 1,003,123
      With LT5, HDV, and EBP
      BOP Unit Value                         --        --        --
      EOP Unit Value                     $11.04        --        --        --
      Number of Units                        --        --        --        --
   --------------------------------------------------------------------------
   ProFund VP -- Mid-Cap Value (2002)
      With No Optional Benefits
      BOP Unit Value                     $11.67    $10.23     $7.66
      EOP Unit Value                     $12.49    $11.67    $10.23     $7.66
      Number of Units                 2,164,543 2,632,869 1,455,513   438,387
      With LT5, HDV, and EBP
      BOP Unit Value                         --        --        --
      EOP Unit Value                     $10.60        --        --        --
      Number of Units                        --        --        --        --
   --------------------------------------------------------------------------
</R>

                                     A-37




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

APEX II - Prospectus (continued)

<R>
  SUB-ACCOUNT                             2005      2004      2003     2002
  ---------------------------------------------------------------------------
  ProFund VP - Mid-Cap Growth (2002)
     With No Optional Benefits
     BOP Unit Value                        $10.58     $9.69     $7.70
     EOP Unit Value                        $11.58    $10.58     $9.69   $7.70
     Number of Units                    5,059,311 2,220,901 1,009,867 439,054
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                        $10.76        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
  ProFund VP -- UltraMid-Cap (2002)
     With No Optional Benefits
     BOP Unit Value                        $11.99     $9.55     $5.71
     EOP Unit Value                        $13.91    $11.99     $9.55   $5.71
     Number of Units                    1,935,487 3,106,849 1,112,311 477,953
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                        $11.38        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
  ProFund VP -- Small-Cap Value (2002)
     With No Optional Benefits
     BOP Unit Value                        $11.10     $9.39     $7.09
     EOP Unit Value                        $11.35    $11.10     $9.39   $7.09
     Number of Units                    1,398,442 4,088,760 5,144,632 994,778
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                        $10.30        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
  ProFund VP -- Small-Cap Growth (2002)
     With No Optional Benefits
     BOP Unit Value                        $11.98    $10.16     $7.69
     EOP Unit Value                        $12.67    $11.98    $10.16   $7.69
     Number of Units                    4,579,887 4,677,820 3,868,951 772,260
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                        $10.48        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
  ProFund VP Large-Cap Growth
     With No Optional Benefits
     BOP Unit Value                        $10.37        --        --
     EOP Unit Value                        $10.30    $10.37        --      --
     Number of Units                    2,620,748    72,725        --      --
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                         $9.98        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
</R>


                                     A-38



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


APEX II - Prospectus (continued)

<R>
SUB-ACCOUNT                                 2005      2004      2003      2002
---------------------------------------------------------------------------------
ProFund VP Large-Cap Value
   With No Optional Benefits
   BOP Unit Value                            $10.37        --        --
   EOP Unit Value                            $10.51    $10.37        --        --
   Number of Units                        2,141,308   159,605        --        --
   With LT5, HDV, and EBP
   BOP Unit Value                                --        --        --
   EOP Unit Value                            $10.20        --        --        --
   Number of Units                               --        --        --        --
---------------------------------------------------------------------------------
ProFund VP Short Mid-Cap
   With No Optional Benefits
   BOP Unit Value                             $9.70        --        --
   EOP Unit Value                             $8.64     $9.70        --        --
   Number of Units                          364,782    39,360        --        --
   With LT5, HDV, and EBP
   BOP Unit Value                                --        --        --
   EOP Unit Value                             $8.94        --        --        --
   Number of Units                               --        --        --        --
---------------------------------------------------------------------------------
ProFund VP Short Small-Cap
   With No Optional Benefits
   BOP Unit Value                             $9.54        --        --
   EOP Unit Value                             $9.11     $9.54        --        --
   Number of Units                          220,843   136,809        --        --
   With LT5, HDV, and EBP
   BOP Unit Value                                --        --        --
   EOP Unit Value                             $9.17        --        --        --
   Number of Units                               --        --        --        --
---------------------------------------------------------------------------------
ProFund VP -- UltraSmall-Cap (1999)
   With No Optional Benefits
   BOP Unit Value                            $15.52    $12.04     $6.14
   EOP Unit Value                            $15.23    $15.52    $12.04     $6.14
   Number of Units                          816,755 5,098,565 1,702,558   212,085
   With LT5, HDV, and EBP
   BOP Unit Value                                --        --        --
   EOP Unit Value                            $10.66        --        --        --
   Number of Units                               --        --        --        --
---------------------------------------------------------------------------------
ProFund VP -- U.S. Government Plus (2002)
   With No Optional Benefits
   BOP Unit Value                            $11.79    $11.08    $11.56
   EOP Unit Value                            $12.64    $11.79    $11.08    $11.56
   Number of Units                        2,312,868 1,051,158   731,470 2,486,854
   With LT5, HDV, and EBP
   BOP Unit Value                                --        --        --
   EOP Unit Value                            $10.54        --        --        --
   Number of Units                               --        --        --        --
---------------------------------------------------------------------------------
</R>

                                     A-39




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

APEX II - Prospectus (continued)

<R>
SUB-ACCOUNT                                     2005      2004      2003     2002
-----------------------------------------------------------------------------------
ProFund VP -- Rising Rates Opportunity (2002)
   With No Optional Benefits
   BOP Unit Value                                 $6.63     $7.56     $8.02
   EOP Unit Value                                 $6.00     $6.63     $7.56   $8.02
   Number of Units                            3,415,324 5,314,528 1,817,924 165,792
   With LT5, HDV, and EBP
   BOP Unit Value                                    --        --        --
   EOP Unit Value                                 $9.08        --        --      --
   Number of Units                                   --        --        --      --
-----------------------------------------------------------------------------------
Access VP High Yield
   With No Optional Benefits
   BOP Unit Value                                    --
   EOP Unit Value                                $10.56        --
   Number of Units                              899,141
   With LT5, HDV, and EBP
   BOP Unit Value                                    --        --        --
   EOP Unit Value                                $10.47        --        --      --
   Number of Units                                   --        --        --      --
-----------------------------------------------------------------------------------
First Trust(R) 10 Uncommon Values (2000)
   With No Optional Benefits
   BOP Unit Value                                $10.03     $9.16     $6.80
   EOP Unit Value                                 $9.92    $10.03     $9.16   $6.80
   Number of Units                               87,726    91,924    66,435  19,826
   With LT5, HDV, and EBP
   BOP Unit Value                                    --        --        --
   EOP Unit Value                                 $9.74        --        --      --
   Number of Units                                   --        --        --      --
-----------------------------------------------------------------------------------
First Trust Global Dividend Target 15
   With No Optional Benefits
   BOP Unit Value                                $11.85        --        --
   EOP Unit Value                                $12.84    $11.85        --      --
   Number of Units                              590,605   311,233        --      --
   With LT5, HDV, and EBP
   BOP Unit Value                                    --        --        --
   EOP Unit Value                                $10.83        --        --      --
   Number of Units                                   --        --        --      --
-----------------------------------------------------------------------------------
First Trust Managed VIP
   With No Optional Benefits
   BOP Unit Value                                $11.32        --        --
   EOP Unit Value                                $11.94    $11.32        --      --
   Number of Units                            2,420,873 1,777,316        --      --
   With LT5, HDV, and EBP
   BOP Unit Value                                    --        --        --
   EOP Unit Value                                $10.43        --        --      --
   Number of Units                                   --        --        --      --
-----------------------------------------------------------------------------------
</R>


                                     A-40



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


APEX II - Prospectus (continued)

<R>
        SUB-ACCOUNT                           2005     2004   2003 2002
        ---------------------------------------------------------------
        First Trust NASDAQ Target 15
           With No Optional Benefits
           BOP Unit Value                      $10.66      --  --
           EOP Unit Value                      $10.83  $10.66  --   --
           Number of Units                    134,177  82,809  --   --
           With LT5, HDV, and EBP
           BOP Unit Value                          --      --  --
           EOP Unit Value                      $10.75      --  --   --
           Number of Units                         --      --  --   --
        ---------------------------------------------------------------
        First Trust S&P Target 24
           With No Optional Benefits
           BOP Unit Value                      $10.75      --  --
           EOP Unit Value                      $11.01  $10.75  --   --
           Number of Units                    304,840 173,851  --   --
           With LT5, HDV, and EBP
           BOP Unit Value                          --      --  --
           EOP Unit Value                      $10.48      --  --   --
           Number of Units                         --      --  --   --
        ---------------------------------------------------------------
        First Trust The Dow Target 10
           With No Optional Benefits
           BOP Unit Value                      $10.48      --  --
           EOP Unit Value                       $9.98  $10.48  --   --
           Number of Units                    194,864 155,695  --   --
           With LT5, HDV, and EBP
           BOP Unit Value                          --      --  --
           EOP Unit Value                       $9.53      --  --   --
           Number of Units                         --      --  --   --
        ---------------------------------------------------------------
        First Trust The Dow Target Dividend
           With No Optional Benefits
           BOP Unit Value                          --      --  --
           EOP Unit Value                       $9.76      --  --   --
           Number of Units                  1,240,527      --  --   --
           With LT5, HDV, and EBP
           BOP Unit Value                          --      --  --
           EOP Unit Value                       $9.67      --  --   --
           Number of Units                         --      --  --   --
        ---------------------------------------------------------------
        First Trust Value Line Target 25
           With No Optional Benefits
           BOP Unit Value                      $12.59      --  --
           EOP Unit Value                      $14.82  $12.59  --   --
           Number of Units                  1,068,339 389,792  --   --
           With LT5, HDV, and EBP
           BOP Unit Value                          --      --  --
           EOP Unit Value                      $11.11      --  --   --
           Number of Units                         --      --  --   --
        ---------------------------------------------------------------
</R>

                                     A-41




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASXT Six - Prospectus (continued)

<R>
     SUB-ACCOUNT                                     2005    2004 2003 2002
     ----------------------------------------------------------------------
     AST Aggressive Asset Allocation Portfolio
        With No Optional Benefits
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                $10.00  --   --   --
        Number of Units                              649,829  --   --   --
        With LT5, HDV, and EBP
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                 $9.99  --   --   --
        Number of Units                                   --  --   --   --
     ----------------------------------------------------------------------
     AST Capital Growth Asset Allocation Portfolio
        With No Optional Benefits
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                $10.01  --   --   --
        Number of Units                            2,586,012  --   --   --
        With LT5, HDV, and EBP
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                $10.00  --   --   --
        Number of Units                                   --  --   --   --
     ----------------------------------------------------------------------
     AST Balanced Asset Allocation Portfolio
        With No Optional Benefits
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                $10.02  --   --   --
        Number of Units                            2,726,484  --   --   --
        With LT5, HDV, and EBP
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                $10.01  --   --   --
        Number of Units                                   --  --   --   --
     ----------------------------------------------------------------------
     AST Conservative Asset Allocation Portfolio
        With No Optional Benefits
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                $10.03  --   --   --
        Number of Units                              685,724  --   --   --
        With LT5, HDV, and EBP
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                $10.02  --   --   --
        Number of Units                                   --  --   --   --
     ----------------------------------------------------------------------
     AST Preservation Asset Allocation Portfolio
        With No Optional Benefits
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                $10.04  --   --   --
        Number of Units                              115,215  --   --   --
        With LT5, HDV, and EBP
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                $10.03  --   --   --
        Number of Units                                   --  --   --   --
     ----------------------------------------------------------------------
</R>


                                     A-42



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASXT Six - Prospectus (continued)

<R>
SUB-ACCOUNT                                      2005       2004      2003      2002
---------------------------------------------------------------------------------------
AST JP Morgan International Equity
   With No Optional Benefits
   BOP Unit Value                                 $12.67     $11.00     $8.56
   EOP Unit Value                                 $13.84     $12.67    $11.00     $8.56
   Number of Units                             5,621,836  3,227,381 2,415,394 2,569,506
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --        --
   EOP Unit Value                                 $10.53         --        --        --
   Number of Units                                    --         --        --        --
---------------------------------------------------------------------------------------
AST William Blair International Growth (1997)
   With No Optional Benefits
   BOP Unit Value                                 $15.30     $13.39     $9.72
   EOP Unit Value                                 $17.54     $15.30    $13.39     $9.72
   Number of Units                            12,141,522 11,265,469 5,547,558   835,523
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --        --
   EOP Unit Value                                 $11.16         --        --        --
   Number of Units                                    --         --        --        --
---------------------------------------------------------------------------------------
AST LSV International Value
   With No Optional Benefits
   BOP Unit Value                                 $12.84     $10.79     $8.19
   EOP Unit Value                                 $14.36     $12.84    $10.79     $8.19
   Number of Units                             2,013,544  1,897,469 1,201,268   269,995
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --        --
   EOP Unit Value                                 $10.59         --        --        --
   Number of Units                                    --         --        --        --
---------------------------------------------------------------------------------------
AST MFS Global Equity (1999)
   With No Optional Benefits
   BOP Unit Value                                 $13.16     $11.30     $9.04
   EOP Unit Value                                 $13.92     $13.16    $11.30     $9.04
   Number of Units                             1,907,776  2,276,801 1,393,001   969,509
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --        --
   EOP Unit Value                                 $10.36         --        --        --
   Number of Units                                    --         --        --        --
---------------------------------------------------------------------------------------
AST Small-Cap Growth
   With No Optional Benefits
   BOP Unit Value                                  $9.05      $9.89     $6.92
   EOP Unit Value                                  $9.04      $9.05     $9.89     $6.92
   Number of Units                             2,134,730  2,242,129 3,292,593 1,970,250
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --        --
   EOP Unit Value                                 $10.31         --        --        --
   Number of Units                                    --         --        --        --
---------------------------------------------------------------------------------------
</R>

                                     A-43




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASXT Six - Prospectus (continued)

<R>
SUB-ACCOUNT                                 2005       2004       2003      2002
-----------------------------------------------------------------------------------
AST DeAM Small-Cap Growth (1999)
   With No Optional Benefits
   BOP Unit Value                            $11.98     $11.13      $7.67
   EOP Unit Value                            $11.83     $11.98     $11.13     $7.67
   Number of Units                        1,385,430  1,618,719  1,682,193   639,695
   With LT5, HDV, and EBP
   BOP Unit Value                                --         --         --
   EOP Unit Value                            $10.20         --         --        --
   Number of Units                               --         --         --        --
-----------------------------------------------------------------------------------
AST Federated Aggressive Growth (2000)
   With No Optional Benefits
   BOP Unit Value                            $15.42     $12.74      $7.64
   EOP Unit Value                            $16.60     $15.42     $12.74     $7.64
   Number of Units                        5,464,856  4,808,453  3,085,373 1,255,415
   With LT5, HDV, and EBP
   BOP Unit Value                                --         --         --
   EOP Unit Value                            $10.84         --         --        --
   Number of Units                               --         --         --        --
-----------------------------------------------------------------------------------
AST Goldman Sachs Small-Cap Value (1997)
   With No Optional Benefits
   BOP Unit Value                            $15.19     $12.85      $9.26
   EOP Unit Value                            $15.68     $15.19     $12.85     $9.26
   Number of Units                        1,243,642  1,541,896  1,504,296 1,492,775
   With LT5, HDV, and EBP
   BOP Unit Value                                --         --         --
   EOP Unit Value                            $10.44         --         --        --
   Number of Units                               --         --         --        --
-----------------------------------------------------------------------------------
AST Small-Cap Value (1997)
   With No Optional Benefits
   BOP Unit Value                            $14.22     $12.42      $9.30
   EOP Unit Value                            $14.91     $14.22     $12.42     $9.30
   Number of Units                       11,285,282 10,785,030 10,183,346 6,141,523
   With LT5, HDV, and EBP
   BOP Unit Value                                --         --         --
   EOP Unit Value                            $10.53         --         --        --
   Number of Units                               --         --         --        --
-----------------------------------------------------------------------------------
AST DeAM Small-Cap Value (2002)
   With No Optional Benefits
   BOP Unit Value                            $12.99     $10.81      $7.66
   EOP Unit Value                            $12.92     $12.99     $10.81     $7.66
   Number of Units                        2,106,236  2,143,020  1,134,865   423,387
   With LT5, HDV, and EBP
   BOP Unit Value                                --         --         --
   EOP Unit Value                             $9.90         --         --        --
   Number of Units                               --         --         --        --
-----------------------------------------------------------------------------------
</R>


                                     A-44



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASXT Six - Prospectus (continued)

<R>
SUB-ACCOUNT                                           2005       2004      2003      2002
--------------------------------------------------------------------------------------------
AST Goldman Sachs Mid-Cap Growth (2000)
   With No Optional Benefits
   BOP Unit Value                                      $11.80     $10.31     $7.97
   EOP Unit Value                                      $12.16     $11.80    $10.31     $7.97
   Number of Units                                  5,391,424  4,375,813 3,027,057 1,273,118
   With LT5, HDV, and EBP
   BOP Unit Value                                          --         --        --
   EOP Unit Value                                      $10.46         --        --        --
   Number of Units                                         --         --        --        --
--------------------------------------------------------------------------------------------
AST Neuberger Berman Mid-Cap Growth (1994)
   With No Optional Benefits
   BOP Unit Value                                      $10.86      $9.51     $7.41
   EOP Unit Value                                      $12.12     $10.86     $9.51     $7.41
   Number of Units                                  5,728,446  4,715,301 3,415,318 2,175,250
   With LT5, HDV, and EBP
   BOP Unit Value                                          --         --        --
   EOP Unit Value                                      $11.21         --        --        --
   Number of Units                                         --         --        --        --
--------------------------------------------------------------------------------------------
AST Neuberger Berman Mid-Cap Value (1993)
   With No Optional Benefits
   BOP Unit Value                                      $14.51     $12.01     $8.96
   EOP Unit Value                                      $15.99     $14.51    $12.01     $8.96
   Number of Units                                 12,260,007 11,461,684 8,530,129 5,118,558
   With LT5, HDV, and EBP
   BOP Unit Value                                          --         --        --
   EOP Unit Value                                      $10.76         --        --        --
   Number of Units                                         --         --        --        --
--------------------------------------------------------------------------------------------
AST Alger All-Cap Growth (2000)
 (merged into AST Neuberger Berman Mid-Cap Growth)
   With No Optional Benefits
   BOP Unit Value                                       $9.67      $9.07     $6.80
   EOP Unit Value                                      $11.10      $9.67     $9.07     $6.80
   Number of Units                                         --  1,798,457 2,002,166   658,419
   With LT5, HDV, and EBP
   BOP Unit Value                                          --         --        --
   EOP Unit Value                                      $11.59         --        --        --
   Number of Units                                         --         --        --        --
--------------------------------------------------------------------------------------------
AST Mid-Cap Value (2000)
 (formerly AST Gabelli All-Cap Value)
   With No Optional Benefits
   BOP Unit Value                                      $12.38     $10.91     $8.17
   EOP Unit Value                                      $12.83     $12.38    $10.91     $8.17
   Number of Units                                  1,988,252  2,587,064 2,513,413 1,200,225
   With LT5, HDV, and EBP
   BOP Unit Value                                          --         --        --
   EOP Unit Value                                      $10.24         --        --        --
   Number of Units                                         --         --        --        --
--------------------------------------------------------------------------------------------
</R>

                                     A-45




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASXT Six - Prospectus (continued)

<R>
SUB-ACCOUNT                                           2005       2004       2003       2002
----------------------------------------------------------------------------------------------
AST T. Rowe Price Natural Resources (1995)
   With No Optional Benefits
   BOP Unit Value                                      $16.25     $12.59      $9.59
   EOP Unit Value                                      $21.00     $16.25     $12.59      $9.59
   Number of Units                                  3,677,614  2,040,188  2,011,627    724,670
   With LT5, HDV, and EBP
   BOP Unit Value                                          --         --         --
   EOP Unit Value                                      $11.61         --         --         --
   Number of Units                                         --         --         --         --
----------------------------------------------------------------------------------------------
AST T. Rowe Price Large-Cap Growth
 (formerly AST AllianceBernstein Large-Cap Growth)
   With No Optional Benefits
   BOP Unit Value                                       $9.44      $9.08      $7.46
   EOP Unit Value                                      $10.81      $9.44      $9.08      $7.46
   Number of Units                                  3,925,740  2,378,881  2,098,873  1,869,353
   With LT5, HDV, and EBP
   BOP Unit Value                                          --         --         --
   EOP Unit Value                                      $11.98         --         --         --
   Number of Units                                         --         --         --         --
----------------------------------------------------------------------------------------------
AST MFS Growth (1999)
   With No Optional Benefits
   BOP Unit Value                                       $9.97      $9.16      $7.58
   EOP Unit Value                                      $10.43      $9.97      $9.16      $7.58
   Number of Units                                  5,915,443  4,529,834  4,784,269  2,930,432
   With LT5, HDV, and EBP
   BOP Unit Value                                          --         --         --
   EOP Unit Value                                      $10.64         --         --         --
   Number of Units                                         --         --         --         --
----------------------------------------------------------------------------------------------
AST Marsico Capital Growth (1997)
   With No Optional Benefits
   BOP Unit Value                                      $12.26     $10.78      $8.32
   EOP Unit Value                                      $12.88     $12.26     $10.78      $8.32
   Number of Units                                 32,140,125 28,117,310 20,138,164 10,144,317
   With LT5, HDV, and EBP
   BOP Unit Value                                          --         --         --
   EOP Unit Value                                      $10.78         --         --         --
   Number of Units                                         --         --         --         --
----------------------------------------------------------------------------------------------
AST Goldman Sachs Concentrated Growth (1992)
   With No Optional Benefits
   BOP Unit Value                                       $9.64      $9.45      $7.67
   EOP Unit Value                                       $9.80      $9.64      $9.45      $7.67
   Number of Units                                  2,531,900  2,785,100  2,053,023  1,349,939
   With LT5, HDV, and EBP
   BOP Unit Value                                          --         --         --
   EOP Unit Value                                      $10.64         --         --         --
   Number of Units                                         --         --         --         --
----------------------------------------------------------------------------------------------
</R>


                                     A-46



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASXT Six - Prospectus (continued)

<R>
SUB-ACCOUNT                                              2005      2004      2003      2002
----------------------------------------------------------------------------------------------
AST DeAM Large-Cap Value (2000)
   With No Optional Benefits
   BOP Unit Value                                         $12.53    $10.78     $8.66
   EOP Unit Value                                         $13.47    $12.53    $10.78     $8.66
   Number of Units                                     2,585,881 2,351,197 1,072,256   664,649
   With LT5, HDV, and EBP
   BOP Unit Value                                             --        --        --
   EOP Unit Value                                         $10.59        --        --        --
   Number of Units                                            --        --        --        --
----------------------------------------------------------------------------------------------
AST AllianceBernstein Growth + Value (2001)
 (merged into AST AllianceBernstein Managed Index 500)
   With No Optional Benefits
   BOP Unit Value                                         $10.72     $9.91     $7.99
   EOP Unit Value                                         $11.86    $10.72     $9.91     $7.99
   Number of Units                                            -- 1,620,391 1,387,072   965,912
   With LT5, HDV, and EBP
   BOP Unit Value                                             --        --        --
   EOP Unit Value                                         $11.21        --        --        --
   Number of Units                                            --        --        --        --
----------------------------------------------------------------------------------------------
AST AllianceBernstein Core Value (2001)
   With No Optional Benefits
   BOP Unit Value                                         $12.39    $11.06     $8.76
   EOP Unit Value                                         $12.86    $12.39    $11.06     $8.76
   Number of Units                                     4,311,857 4,643,022 3,621,862 6,005,922
   With LT5, HDV, and EBP
   BOP Unit Value                                             --        --        --
   EOP Unit Value                                         $10.20        --        --        --
   Number of Units                                            --        --        --        --
----------------------------------------------------------------------------------------------
AST Cohen & Steers Real Estate (1998)
   With No Optional Benefits
   BOP Unit Value                                         $18.49    $13.63    $10.08
   EOP Unit Value                                         $20.88    $18.49    $13.63    $10.08
   Number of Units                                     3,749,124 4,080,179 3,097,315 1,563,489
   With LT5, HDV, and EBP
   BOP Unit Value                                             --        --        --
   EOP Unit Value                                         $11.88        --        --        --
   Number of Units                                            --        --        --        --
----------------------------------------------------------------------------------------------
AST AllianceBernstein Managed Index 500 (1998)
   With No Optional Benefits
   BOP Unit Value                                         $11.07    $10.23     $8.17
   EOP Unit Value                                         $11.27    $11.07    $10.23     $8.17
   Number of Units                                     6,774,078 6,845,372 5,442,511 3,662,406
   With LT5, HDV, and EBP
   BOP Unit Value                                             --        --        --
   EOP Unit Value                                         $10.28        --        --        --
   Number of Units                                            --        --        --        --
----------------------------------------------------------------------------------------------
</R>

                                     A-47




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASXT Six - Prospectus (continued)

<R>
SUB-ACCOUNT                                         2005       2004       2003      2002
-------------------------------------------------------------------------------------------
AST American Century Income & Growth (1997)
   With No Optional Benefits
   BOP Unit Value                                    $11.57     $10.45      $8.25
   EOP Unit Value                                    $11.90     $11.57     $10.45     $8.25
   Number of Units                                4,205,655  4,670,846  2,115,438 1,751,136
   With LT5, HDV, and EBP
   BOP Unit Value                                        --         --         --
   EOP Unit Value                                    $10.22         --         --        --
   Number of Units                                       --         --         --        --
-------------------------------------------------------------------------------------------
AST AllianceBernstein Growth & Income (1992)
   With No Optional Benefits
   BOP Unit Value                                    $11.46     $10.50      $8.06
   EOP Unit Value                                    $11.81     $11.46     $10.50     $8.06
   Number of Units                               31,190,346 25,850,506 21,264,670 6,667,373
   With LT5, HDV, and EBP
   BOP Unit Value                                        --         --         --
   EOP Unit Value                                    $10.15         --         --        --
   Number of Units                                       --         --         --        --
-------------------------------------------------------------------------------------------
AST Large-Cap Value
 (formerly AST Hotchkis & Wiley Large-Cap Value)
   With No Optional Benefits
   BOP Unit Value                                    $11.17      $9.83      $8.34
   EOP Unit Value                                    $11.69     $11.17      $9.83     $8.34
   Number of Units                                5,245,455  3,717,848  2,647,064 2,110,071
   With LT5, HDV, and EBP
   BOP Unit Value                                        --         --         --
   EOP Unit Value                                    $10.44         --         --        --
   Number of Units                                       --         --         --        --
-------------------------------------------------------------------------------------------
AST Global Allocation (1993)
   With No Optional Benefits
   BOP Unit Value                                    $11.19     $10.24      $8.71
   EOP Unit Value                                    $11.77     $11.19     $10.24     $8.71
   Number of Units                                1,055,033  1,061,887    898,161   847,517
   With LT5, HDV, and EBP
   BOP Unit Value                                        --         --         --
   EOP Unit Value                                    $10.50         --         --        --
   Number of Units                                       --         --         --        --
-------------------------------------------------------------------------------------------
AST American Century Strategic Balanced (1997)
   With No Optional Benefits
   BOP Unit Value                                    $11.46     $10.69      $9.14
   EOP Unit Value                                    $11.79     $11.46     $10.69     $9.14
   Number of Units                                2,294,531  2,335,598  2,045,205 1,126,058
   With LT5, HDV, and EBP
   BOP Unit Value                                        --         --         --
   EOP Unit Value                                    $10.20         --         --        --
   Number of Units                                       --         --         --        --
-------------------------------------------------------------------------------------------
</R>


                                     A-48



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASXT Six - Prospectus (continued)

<R>
SUB-ACCOUNT                                      2005       2004       2003       2002
-----------------------------------------------------------------------------------------
AST T. Rowe Price Asset Allocation (1994)
   With No Optional Benefits
   BOP Unit Value                                 $12.13     $11.09      $9.09
   EOP Unit Value                                 $12.49     $12.13     $11.09      $9.09
   Number of Units                             4,192,626  3,551,315  2,243,566    921,329
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                 $10.24         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
AST T. Rowe Price Global Bond (1994)
   With No Optional Benefits
   BOP Unit Value                                 $13.45     $12.59     $11.34
   EOP Unit Value                                 $12.64     $13.45     $12.59     $11.34
   Number of Units                             6,261,824  4,717,822  2,962,471  1,739,313
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                  $9.34         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
AST High Yield
 (formerly AST Goldman Sachs High Yield Bond)
   With No Optional Benefits
   BOP Unit Value                                 $12.69     $11.61      $9.71
   EOP Unit Value                                 $12.62     $12.69     $11.61      $9.71
   Number of Units                             9,658,908 13,717,125 12,201,163  5,592,940
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                  $9.75         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
AST Lord Abbett Bond-Debenture (2000)
   With No Optional Benefits
   BOP Unit Value                                 $12.26     $11.61      $9.94
   EOP Unit Value                                 $12.20     $12.26     $11.61      $9.94
   Number of Units                            12,427,806  8,369,008  7,751,236  4,146,530
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                  $9.84         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
AST PIMCO Total Return Bond (1994)
   With No Optional Benefits
   BOP Unit Value                                 $11.31     $10.95     $10.57
   EOP Unit Value                                 $11.40     $11.31     $10.95     $10.57
   Number of Units                            22,436,395 33,208,749 26,287,388 20,544,075
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                 $10.04         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
</R>

                                     A-49




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASXT Six - Prospectus (continued)

<R>
SUB-ACCOUNT                                      2005       2004       2003       2002
-----------------------------------------------------------------------------------------
AST PIMCO Limited Maturity Bond (1995)
   With No Optional Benefits
   BOP Unit Value                                 $10.55     $10.51     $10.34
   EOP Unit Value                                 $10.54     $10.55     $10.51     $10.34
   Number of Units                            28,031,653 21,299,789 15,242,856 11,274,642
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                  $9.94         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
AST Money Market (1992)
   With No Optional Benefits
   BOP Unit Value                                  $9.78      $9.86      $9.96
   EOP Unit Value                                  $9.88      $9.78      $9.86      $9.96
   Number of Units                            42,442,274 29,870,576 32,730,501 36,255,772
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                  $9.99         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
SP William Blair International Growth
   With No Optional Benefits
   BOP Unit Value                                 $10.53         --         --
   EOP Unit Value                                 $12.05     $10.53         --         --
   Number of Units                               672,243    269,671         --         --
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                 $11.18         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
Gartmore Variable Investment Trust --
 GVIT Developing Markets (1996)
   With No Optional Benefits
   BOP Unit Value                                 $16.02     $13.60      $8.66
   EOP Unit Value                                 $20.72     $16.02     $13.60      $8.66
   Number of Units                             3,395,891  2,103,950  1,763,660    283,466
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                 $11.93         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
Wells Fargo Advantage VT Equity Income (1999)
 (formerly WFVT Advantage Equity Income)
   With No Optional Benefits
   BOP Unit Value                                 $11.18     $10.23      $8.25
   EOP Unit Value                                 $11.59     $11.18     $10.23      $8.25
   Number of Units                               534,649    590,808    314,757    196,720
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                 $10.08         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
</R>


                                     A-50



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASXT Six - Prospectus (continued)

<R>
 SUB-ACCOUNT                                   2005     2004    2003    2002
 -----------------------------------------------------------------------------
 AIM V.I. -- Dynamics (1999)
    With No Optional Benefits
    BOP Unit Value                              $10.72   $9.61   $7.09
    EOP Unit Value                              $11.67  $10.72   $9.61   $7.09
    Number of Units                            602,064 668,032 889,464 543,762
    With LT5, HDV, and EBP
    BOP Unit Value                                  --      --      --
    EOP Unit Value                              $10.80      --      --      --
    Number of Units                                 --      --      --      --
 -----------------------------------------------------------------------------
 AIM V.I. -- Technology (1999)
    With No Optional Benefits
    BOP Unit Value                               $8.09   $7.87   $5.50
    EOP Unit Value                               $8.13   $8.09   $7.87   $5.50
    Number of Units                            453,391 512,424 578,651 293,307
    With LT5, HDV, and EBP
    BOP Unit Value                                  --      --      --
    EOP Unit Value                              $10.60      --      --      --
    Number of Units                                 --      --      --      --
 -----------------------------------------------------------------------------
 AIM V.I. -- Global Health Care (1999)
  (formerly AIM V.I. -- Health Sciences)
    With No Optional Benefits
    BOP Unit Value                              $10.64  $10.05   $8.00
    EOP Unit Value                              $11.31  $10.64  $10.05   $8.00
    Number of Units                          1,131,375 937,586 698,364 475,873
    With LT5, HDV, and EBP
    BOP Unit Value                                  --      --      --
    EOP Unit Value                              $11.04      --      --      --
    Number of Units                                 --      --      --      --
 -----------------------------------------------------------------------------
 AIM V.I. -- Financial Services (1999)
    With No Optional Benefits
    BOP Unit Value                              $11.94  $11.17   $8.76
    EOP Unit Value                              $12.43  $11.94  $11.17   $8.76
    Number of Units                          1,042,992 585,185 607,265 366,258
    With LT5, HDV, and EBP
    BOP Unit Value                                  --      --      --
    EOP Unit Value                              $10.62      --      --      --
    Number of Units                                 --      --      --      --
 -----------------------------------------------------------------------------
 Evergreen VA -- International Equity (2000)
    With No Optional Benefits
    BOP Unit Value                              $13.66  $11.65   $8.15
    EOP Unit Value                              $15.59  $13.66  $11.65   $8.15
    Number of Units                            689,816 414,631 189,143 113,389
    With LT5, HDV, and EBP
    BOP Unit Value                                  --      --      --
    EOP Unit Value                              $10.88      --      --      --
    Number of Units                                 --      --      --      --
 -----------------------------------------------------------------------------
</R>

                                     A-51




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASXT Six - Prospectus (continued)

<R>
  SUB-ACCOUNT                             2005      2004      2003     2002
  ---------------------------------------------------------------------------
  Evergreen VA -- Special Equity (1999)
   (merged into Evergreen VA Growth)
     With No Optional Benefits
     BOP Unit Value                        $11.58    $11.12     $7.44
     EOP Unit Value                        $10.31    $11.58    $11.12   $7.44
     Number of Units                           --   702,642   815,621 127,728
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                         $9.26        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
  Evergreen VA -- Omega (2000)
     With No Optional Benefits
     BOP Unit Value                        $11.29    $10.71     $7.78
     EOP Unit Value                        $11.53    $11.29    $10.71   $7.78
     Number of Units                      281,775   570,123   404,789  39,943
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                        $10.50        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
  Evergreen VA Growth Fund
     With No Optional Benefits
     BOP Unit Value                            --        --        --      --
     EOP Unit Value                        $11.44        --        --      --
     Number of Units                      606,614        --        --      --
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                        $11.33        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
  ProFund VP -- Europe 30 (1999)
     With No Optional Benefits
     BOP Unit Value                        $12.17    $10.83     $7.93
     EOP Unit Value                        $12.94    $12.17    $10.83   $7.93
     Number of Units                    1,133,421 1,812,435 2,116,400 292,396
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                        $10.41        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
  ProFund VP -- Asia 30 (2002)
     With No Optional Benefits
     BOP Unit Value                        $12.30    $12.57     $7.75
     EOP Unit Value                        $14.45    $12.30    $12.57   $7.75
     Number of Units                    1,723,105   896,010   942,605 281,993
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                        $11.10        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
</R>


                                     A-52



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASXT Six - Prospectus (continued)

<R>
   SUB-ACCOUNT                              2005     2004     2003     2002
   --------------------------------------------------------------------------
   ProFund VP -- Japan (2002)
      With No Optional Benefits
      BOP Unit Value                          $9.55   $9.03     $7.24
      EOP Unit Value                         $13.31   $9.55     $9.03   $7.24
      Number of Units                     3,413,955 710,879   426,718  65,845
      With LT5, HDV, and EBP
      BOP Unit Value                             --      --        --
      EOP Unit Value                         $13.38      --        --      --
      Number of Units                            --      --        --      --
   --------------------------------------------------------------------------
   ProFund VP -- Banks (2002)
      With No Optional Benefits
      BOP Unit Value                         $11.98  $10.90     $8.56
      EOP Unit Value                         $11.77  $11.98    $10.90   $8.56
      Number of Units                       351,876 229,711    93,067 101,136
      With LT5, HDV, and EBP
      BOP Unit Value                             --      --        --
      EOP Unit Value                         $10.10      --        --      --
      Number of Units                            --      --        --      --
   --------------------------------------------------------------------------
   ProFund VP -- Basic Materials (2002)
      With No Optional Benefits
      BOP Unit Value                         $11.87  $10.95     $8.46
      EOP Unit Value                         $11.96  $11.87    $10.95   $8.46
      Number of Units                       681,692 529,237 1,512,864  76,331
      With LT5, HDV, and EBP
      BOP Unit Value                             --      --        --
      EOP Unit Value                          $9.48      --        --      --
      Number of Units                            --      --        --      --
   --------------------------------------------------------------------------
   ProFund VP -- Biotechnology (2001)
      With No Optional Benefits
      BOP Unit Value                         $10.52   $9.75     $7.09
      EOP Unit Value                         $12.34  $10.52     $9.75   $7.09
      Number of Units                       697,686 757,678   208,971 130,082
      With LT5, HDV, and EBP
      BOP Unit Value                             --      --        --
      EOP Unit Value                         $13.48      --        --      --
      Number of Units                            --      --        --      --
   --------------------------------------------------------------------------
   ProFund VP -- Consumer Services (2002)
      With No Optional Benefits
      BOP Unit Value                          $9.56   $9.04     $7.25
      EOP Unit Value                          $8.97   $9.56     $9.04   $7.25
      Number of Units                        86,431 430,620   136,269 128,022
      With LT5, HDV, and EBP
      BOP Unit Value                             --      --        --
      EOP Unit Value                          $9.66      --        --      --
      Number of Units                            --      --        --      --
   --------------------------------------------------------------------------
</R>

                                     A-53




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASXT Six - Prospectus (continued)

<R>
   SUB-ACCOUNT                           2005      2004      2003     2002
   -------------------------------------------------------------------------
   ProFund VP -- Consumer Goods (2002)
      With No Optional Benefits
      BOP Unit Value                      $10.36     $9.64     $8.28
      EOP Unit Value                      $10.15    $10.36     $9.64   $8.28
      Number of Units                    161,037   369,007    58,425 148,446
      With LT5, HDV, and EBP
      BOP Unit Value                          --        --        --
      EOP Unit Value                       $9.73        --        --      --
      Number of Units                         --        --        --      --
   -------------------------------------------------------------------------
   ProFund VP -- Oil & Gas (2001)
      With No Optional Benefits
      BOP Unit Value                      $13.33    $10.48     $8.71
      EOP Unit Value                      $17.22    $13.33    $10.48   $8.71
      Number of Units                  2,573,776 1,856,882 1,225,844 299,833
      With LT5, HDV, and EBP
      BOP Unit Value                          --        --        --
      EOP Unit Value                      $10.92        --        --      --
      Number of Units                         --        --        --      --
   -------------------------------------------------------------------------
   ProFund VP -- Financials (2001)
      With No Optional Benefits
      BOP Unit Value                      $12.19    $11.23     $8.85
      EOP Unit Value                      $12.46    $12.19    $11.23   $8.85
      Number of Units                    616,873   553,342   398,159 221,377
      With LT5, HDV, and EBP
      BOP Unit Value                          --        --        --
      EOP Unit Value                      $10.53        --        --      --
      Number of Units                         --        --        --      --
   -------------------------------------------------------------------------
   ProFund VP -- Health Care (2001)
      With No Optional Benefits
      BOP Unit Value                       $9.23     $9.17     $7.94
      EOP Unit Value                       $9.63     $9.23     $9.17   $7.94
      Number of Units                  2,175,821 1,318,525   707,449 388,508
      With LT5, HDV, and EBP
      BOP Unit Value                          --        --        --
      EOP Unit Value                      $10.46        --        --      --
      Number of Units                         --        --        --      --
   -------------------------------------------------------------------------
   ProFund VP -- Industrials (2002)
      With No Optional Benefits
      BOP Unit Value                      $11.15    $10.01     $7.93
      EOP Unit Value                      $11.23    $11.15    $10.01   $7.93
      Number of Units                    211,677   253,411   318,339  12,642
      With LT5, HDV, and EBP
      BOP Unit Value                          --        --        --
      EOP Unit Value                      $10.06        --        --      --
      Number of Units                         --        --        --      --
   -------------------------------------------------------------------------
</R>


                                     A-54



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASXT Six - Prospectus (continued)

<R>
  SUB-ACCOUNT                            2005      2004      2003      2002
  ----------------------------------------------------------------------------
  ProFund VP -- Internet (2002)
     With No Optional Benefits
     BOP Unit Value                       $17.89    $15.00     $8.57
     EOP Unit Value                       $18.90    $17.89    $15.00     $8.57
     Number of Units                     467,320   992,879   206,876   306,572
     With LT5, HDV, and EBP
     BOP Unit Value                           --        --        --
     EOP Unit Value                       $12.71        --        --        --
     Number of Units                          --        --        --        --
  ----------------------------------------------------------------------------
  ProFund VP -- Pharmaceuticals (2002)
     With No Optional Benefits
     BOP Unit Value                        $7.93     $8.89     $8.56
     EOP Unit Value                        $7.51     $7.93     $8.89     $8.56
     Number of Units                     515,768   527,336   266,978   136,559
     With LT5, HDV, and EBP
     BOP Unit Value                           --        --        --
     EOP Unit Value                        $9.44        --        --        --
     Number of Units                          --        --        --        --
  ----------------------------------------------------------------------------
  ProFund VP -- Precious Metals (2002)
     With No Optional Benefits
     BOP Unit Value                       $11.77    $13.29     $9.70
     EOP Unit Value                       $14.62    $11.77    $13.29     $9.70
     Number of Units                   2,426,530 1,479,384 1,329,806 1,175,651
     With LT5, HDV, and EBP
     BOP Unit Value                           --        --        --
     EOP Unit Value                       $12.00        --        --        --
     Number of Units                          --        --        --        --
  ----------------------------------------------------------------------------
  ProFund VP -- Real Estate (2001)
     With No Optional Benefits
     BOP Unit Value                       $16.15    $12.91     $9.86
     EOP Unit Value                       $16.96    $16.15    $12.91     $9.86
     Number of Units                     501,989 1,816,706   462,906   441,318
     With LT5, HDV, and EBP
     BOP Unit Value                           --        --        --
     EOP Unit Value                       $11.17        --        --        --
     Number of Units                          --        --        --        --
  ----------------------------------------------------------------------------
  ProFund VP -- Semiconductor (2002)
     With No Optional Benefits
     BOP Unit Value                        $7.15     $9.51     $5.14
     EOP Unit Value                        $7.64     $7.15     $9.51     $5.14
     Number of Units                     746,085   694,352   423,958    93,241
     With LT5, HDV, and EBP
     BOP Unit Value                           --        --        --
     EOP Unit Value                       $10.65        --        --        --
     Number of Units                          --        --        --        --
  ----------------------------------------------------------------------------
</R>

                                     A-55




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASXT Six - Prospectus (continued)

<R>
SUB-ACCOUNT                               2005      2004      2003      2002
-------------------------------------------------------------------------------
ProFund VP -- Technology (2001)
   With No Optional Benefits
   BOP Unit Value                           $8.48     $8.66     $6.03
   EOP Unit Value                           $8.45     $8.48     $8.66     $6.03
   Number of Units                        577,739   727,580   497,972   254,131
   With LT5, HDV, and EBP
   BOP Unit Value                              --        --        --
   EOP Unit Value                          $10.54        --        --        --
   Number of Units                             --        --        --        --
-------------------------------------------------------------------------------
ProFund VP -- Telecommunications (2001)
   With No Optional Benefits
   BOP Unit Value                           $8.19     $7.21     $7.15
   EOP Unit Value                           $7.52     $8.19     $7.21     $7.15
   Number of Units                        456,586   460,848   398,350   272,408
   With LT5, HDV, and EBP
   BOP Unit Value                              --        --        --
   EOP Unit Value                           $9.74        --        --        --
   Number of Units                             --        --        --        --
-------------------------------------------------------------------------------
ProFund VP -- Utilities (2001)
   With No Optional Benefits
   BOP Unit Value                          $11.13     $9.34     $7.83
   EOP Unit Value                          $12.37    $11.13     $9.34     $7.83
   Number of Units                      1,996,877 1,060,939   618,427   521,419
   With LT5, HDV, and EBP
   BOP Unit Value                              --        --        --
   EOP Unit Value                          $10.60        --        --        --
   Number of Units                             --        --        --        --
-------------------------------------------------------------------------------
ProFund VP -- Bull (2002)
   With No Optional Benefits
   BOP Unit Value                          $10.53     $9.84     $7.97
   EOP Unit Value                          $10.64    $10.53     $9.84     $7.97
   Number of Units                      7,846,866 8,215,357 3,563,562   954,792
   With LT5, HDV, and EBP
   BOP Unit Value                              --        --        --
   EOP Unit Value                          $10.12        --        --        --
   Number of Units                             --        --        --        --
-------------------------------------------------------------------------------
ProFund VP -- Bear (2001)
   With No Optional Benefits
   BOP Unit Value                           $7.45     $8.44    $11.38
   EOP Unit Value                           $7.23     $7.45     $8.44    $11.38
   Number of Units                      2,169,659 1,202,243 1,886,515 1,532,543
   With LT5, HDV, and EBP
   BOP Unit Value                              --        --        --
   EOP Unit Value                           $9.54        --        --        --
   Number of Units                             --        --        --        --
-------------------------------------------------------------------------------
</R>


                                     A-56



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASXT Six - Prospectus (continued)

<R>
   SUB-ACCOUNT                          2005      2004      2003      2002
   --------------------------------------------------------------------------
   ProFund VP -- Ultra Bull (2001)
      With No Optional Benefits
      BOP Unit Value                     $11.76    $10.20     $6.78
      EOP Unit Value                     $11.87    $11.76    $10.20     $6.78
      Number of Units                 1,158,025 2,817,803 1,431,345   297,435
      With LT5, HDV, and EBP
      BOP Unit Value                         --        --        --
      EOP Unit Value                     $10.25        --        --        --
      Number of Units                        --        --        --        --
   --------------------------------------------------------------------------
   ProFund VP -- OTC (2001)
      With No Optional Benefits
      BOP Unit Value                      $9.94     $9.32     $6.45
      EOP Unit Value                      $9.80     $9.94     $9.32     $6.45
      Number of Units                 2,467,486 4,885,351 4,445,234 1,346,852
      With LT5, HDV, and EBP
      BOP Unit Value                         --        --        --
      EOP Unit Value                     $10.55        --        --        --
      Number of Units                        --        --        --        --
   --------------------------------------------------------------------------
   ProFund VP -- Short OTC (2002)
      With No Optional Benefits
      BOP Unit Value                      $5.93     $6.78    $11.00
      EOP Unit Value                      $5.88     $5.93     $6.78    $11.00
      Number of Units                 2,494,108   908,064 1,535,439   433,181
      With LT5, HDV, and EBP
      BOP Unit Value                         --        --        --
      EOP Unit Value                      $9.14        --        --        --
      Number of Units                        --        --        --        --
   --------------------------------------------------------------------------
   ProFund VP -- UltraOTC (1999)
      With No Optional Benefits
      BOP Unit Value                      $7.89     $7.03     $3.53
      EOP Unit Value                      $7.47     $7.89     $7.03     $3.53
      Number of Units                 4,740,165 6,592,447 3,410,589 1,003,123
      With LT5, HDV, and EBP
      BOP Unit Value                         --        --        --
      EOP Unit Value                     $11.04        --        --        --
      Number of Units                        --        --        --        --
   --------------------------------------------------------------------------
   ProFund VP -- Mid-Cap Value (2002)
      With No Optional Benefits
      BOP Unit Value                     $11.67    $10.23     $7.66
      EOP Unit Value                     $12.49    $11.67    $10.23     $7.66
      Number of Units                 2,164,543 2,632,869 1,455,513   438,387
      With LT5, HDV, and EBP
      BOP Unit Value                         --        --        --
      EOP Unit Value                     $10.60        --        --        --
      Number of Units                        --        --        --        --
   --------------------------------------------------------------------------
</R>

                                     A-57




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASXT Six - Prospectus (continued)

<R>
  SUB-ACCOUNT                             2005      2004      2003     2002
  ---------------------------------------------------------------------------
  ProFund VP -- Mid-Cap Growth (2002)
     With No Optional Benefits
     BOP Unit Value                        $10.58     $9.69     $7.70
     EOP Unit Value                        $11.58    $10.58     $9.69   $7.70
     Number of Units                    5,059,311 2,220,901 1,009,867 439,054
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                        $10.76        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
  ProFund VP -- UltraMid-Cap (2002)
     With No Optional Benefits
     BOP Unit Value                        $11.99     $9.55     $5.71
     EOP Unit Value                        $13.91    $11.99     $9.55   $5.71
     Number of Units                    1,935,487 3,106,849 1,112,311 477,953
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                        $11.38        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
  ProFund VP -- Small-Cap Value (2002)
     With No Optional Benefits
     BOP Unit Value                        $11.10     $9.39     $7.09
     EOP Unit Value                        $11.35    $11.10     $9.39   $7.09
     Number of Units                    1,398,442 4,088,760 5,144,632 994,778
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                        $10.30        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
  ProFund VP -- Small-Cap Growth (2002)
     With No Optional Benefits
     BOP Unit Value                        $11.98    $10.16     $7.69
     EOP Unit Value                        $12.67    $11.98    $10.16   $7.69
     Number of Units                    4,579,887 4,677,820 3,868,951 772,260
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                        $10.48        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
  ProFund VP Large-Cap Growth
     With No Optional Benefits
     BOP Unit Value                        $10.37        --        --
     EOP Unit Value                        $10.30    $10.37        --      --
     Number of Units                    2,620,751    72,725        --      --
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                         $9.98        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
</R>


                                     A-58



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASXT Six - Prospectus (continued)

<R>
SUB-ACCOUNT                                 2005      2004      2003      2002
---------------------------------------------------------------------------------
ProFund VP Large-Cap Value
   With No Optional Benefits
   BOP Unit Value                            $10.37        --        --
   EOP Unit Value                            $10.51    $10.37        --        --
   Number of Units                        2,141,308   159,605        --        --
   With LT5, HDV, and EBP
   BOP Unit Value                                --        --        --
   EOP Unit Value                            $10.20        --        --        --
   Number of Units                               --        --        --        --
---------------------------------------------------------------------------------
ProFund VP Short Mid-Cap
   With No Optional Benefits
   BOP Unit Value                             $9.70        --        --
   EOP Unit Value                             $8.64     $9.70        --        --
   Number of Units                          364,782    39,360        --        --
   With LT5, HDV, and EBP
   BOP Unit Value                                --        --        --
   EOP Unit Value                             $8.94        --        --        --
   Number of Units                               --        --        --        --
---------------------------------------------------------------------------------
ProFund VP Short Small-Cap
   With No Optional Benefits
   BOP Unit Value                             $9.54        --        --
   EOP Unit Value                             $9.11     $9.54        --        --
   Number of Units                          220,843   136,809        --        --
   With LT5, HDV, and EBP
   BOP Unit Value                                --        --        --
   EOP Unit Value                             $9.17        --        --        --
   Number of Units                               --        --        --        --
---------------------------------------------------------------------------------
ProFund VP -- UltraSmall-Cap (1999)
   With No Optional Benefits
   BOP Unit Value                            $15.52    $12.04     $6.14
   EOP Unit Value                            $15.23    $15.52    $12.04     $6.14
   Number of Units                          816,755 5,098,565 1,702,558   212,085
   With LT5, HDV, and EBP
   BOP Unit Value                                --        --        --
   EOP Unit Value                            $10.66        --        --        --
   Number of Units                               --        --        --        --
---------------------------------------------------------------------------------
ProFund VP -- U.S. Government Plus (2002)
   With No Optional Benefits
   BOP Unit Value                            $11.79    $11.08    $11.56
   EOP Unit Value                            $12.64    $11.79    $11.08    $11.56
   Number of Units                        2,312,868 1,051,158   731,470 2,486,854
   With LT5, HDV, and EBP
   BOP Unit Value                                --        --        --
   EOP Unit Value                            $10.54        --        --        --
   Number of Units                               --        --        --        --
---------------------------------------------------------------------------------
</R>

                                     A-59




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASXT Six - Prospectus (continued)

<R>
SUB-ACCOUNT                                     2005      2004      2003     2002
-----------------------------------------------------------------------------------
ProFund VP -- Rising Rates Opportunity (2002)
   With No Optional Benefits
   BOP Unit Value                                 $6.63     $7.56     $8.02
   EOP Unit Value                                 $6.00     $6.63     $7.56   $8.02
   Number of Units                            3,415,324 5,314,528 1,817,924 165,792
   With LT5, HDV, and EBP
   BOP Unit Value                                    --        --        --
   EOP Unit Value                                 $9.08        --        --      --
   Number of Units                                   --        --        --      --
-----------------------------------------------------------------------------------
Access VP High Yield
   With No Optional Benefits
   BOP Unit Value                                    --        --        --      --
   EOP Unit Value                                $10.56        --        --      --
   Number of Units                              899,141        --        --      --
   With LT5, HDV, and EBP
   BOP Unit Value                                    --        --        --
   EOP Unit Value                                $10.47        --        --      --
   Number of Units                                   --        --        --      --
-----------------------------------------------------------------------------------
First Trust(R) 10 Uncommon Values (2000)
   With No Optional Benefits
   BOP Unit Value                                $10.03     $9.16     $6.80
   EOP Unit Value                                 $9.92    $10.03     $9.16   $6.80
   Number of Units                               87,726    91,924    66,435  19,826
   With LT5, HDV, and EBP
   BOP Unit Value                                    --        --        --
   EOP Unit Value                                 $9.74        --        --      --
   Number of Units                                   --        --        --      --
-----------------------------------------------------------------------------------
First Trust Global Dividend Target 15
   With No Optional Benefits
   BOP Unit Value                                $11.85        --        --
   EOP Unit Value                                $12.84    $11.85        --      --
   Number of Units                              590,605   311,233        --      --
   With LT5, HDV, and EBP
   BOP Unit Value                                    --        --        --
   EOP Unit Value                                $10.83        --        --      --
   Number of Units                                   --        --        --      --
-----------------------------------------------------------------------------------
First Trust Managed VIP
   With No Optional Benefits
   BOP Unit Value                                $11.32        --        --
   EOP Unit Value                                $11.94    $11.32        --      --
   Number of Units                            2,420,873 1,777,316        --      --
   With LT5, HDV, and EBP
   BOP Unit Value                                    --        --        --
   EOP Unit Value                                $10.43        --        --      --
   Number of Units                                   --        --        --      --
-----------------------------------------------------------------------------------
</R>


                                     A-60



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASXT Six - Prospectus (continued)

        SUB-ACCOUNT                           2005     2004   2003 2002
        ---------------------------------------------------------------
        First Trust NASDAQ Target 15
           With No Optional Benefits
           BOP Unit Value                      $10.66      --  --
           EOP Unit Value                      $10.83  $10.66  --   --
           Number of Units                    134,177  82,809  --   --
           With LT5, HDV, and EBP
           BOP Unit Value                          --      --  --
           EOP Unit Value                      $10.75      --  --   --
           Number of Units                         --      --  --   --
        ---------------------------------------------------------------
        First Trust S&P Target 24
           With No Optional Benefits
           BOP Unit Value                      $10.75      --  --
           EOP Unit Value                      $11.01  $10.75  --   --
           Number of Units                    304,840 173,851  --   --
           With LT5, HDV, and EBP
           BOP Unit Value                          --      --  --
           EOP Unit Value                      $10.48      --  --   --
           Number of Units                         --      --  --   --
        ---------------------------------------------------------------
        First Trust The Dow Target 10
           With No Optional Benefits
           BOP Unit Value                      $10.48      --  --
           EOP Unit Value                       $9.98  $10.48  --   --
           Number of Units                    194,864 155,695  --   --
           With LT5, HDV, and EBP
           BOP Unit Value                          --      --  --
           EOP Unit Value                       $9.53      --  --   --
           Number of Units                         --      --  --   --
        ---------------------------------------------------------------
        First Trust The Dow Target Dividend
           With No Optional Benefits
           BOP Unit Value                          --      --  --
           EOP Unit Value                       $9.76      --  --   --
           Number of Units                  1,240,527      --  --   --
           With LT5, HDV, and EBP
           BOP Unit Value                          --      --  --
           EOP Unit Value                       $9.67      --  --   --
           Number of Units                         --      --  --   --
        ---------------------------------------------------------------
        First Trust Value Line Target 25
           With No Optional Benefits
           BOP Unit Value                      $12.59      --  --
           EOP Unit Value                      $14.82  $12.59  --   --
           Number of Units                  1,068,339 389,792  --   --
           With LT5, HDV, and EBP
           BOP Unit Value                          --      --  --
           EOP Unit Value                      $11.11      --  --   --
           Number of Units                         --      --  --   --
        ---------------------------------------------------------------

                                     A-61




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASL II - Prospectus


<R>
     SUB-ACCOUNT                                     2005    2004 2003 2002
     ----------------------------------------------------------------------
     AST Aggressive Asset Allocation Portfolio
        With No Optional Benefits
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                $10.00  --   --   --
        Number of Units                              649,829  --   --   --
        With LT5, HDV, and EBP
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                 $9.99  --   --   --
        Number of Units                                   --  --   --   --
     ----------------------------------------------------------------------
     AST Capital Growth Asset Allocation Portfolio
        With No Optional Benefits
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                $10.01  --   --   --
        Number of Units                            2,586,012  --   --   --
        With LT5, HDV, and EBP
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                $10.00  --   --   --
        Number of Units                                   --  --   --   --
     ----------------------------------------------------------------------
     AST Balanced Asset Allocation Portfolio
        With No Optional Benefits
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                $10.02  --   --   --
        Number of Units                            2,726,484  --   --   --
        With LT5, HDV, and EBP
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                $10.01  --   --   --
        Number of Units                                   --  --   --   --
     ----------------------------------------------------------------------
     AST Conservative Asset Allocation Portfolio
        With No Optional Benefits
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                $10.03  --   --   --
        Number of Units                              685,724  --   --   --
        With LT5, HDV, and EBP
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                $10.02  --   --   --
        Number of Units                                   --  --   --   --
     ----------------------------------------------------------------------
     AST Preservation Asset Allocation Portfolio
        With No Optional Benefits
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                $10.04  --   --   --
        Number of Units                              115,215  --   --   --
        With LT5, HDV, and EBP
        BOP Unit Value                                    --  --   --
        EOP Unit Value                                $10.03  --   --   --
        Number of Units                                   --  --   --   --
     ----------------------------------------------------------------------
</R>


                                     A-62



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASL II - Prospectus (continued)

<R>
SUB-ACCOUNT                                      2005       2004      2003      2002
---------------------------------------------------------------------------------------
AST JP Morgan International Equity
   With No Optional Benefits
   BOP Unit Value                                 $12.67     $11.00     $8.56
   EOP Unit Value                                 $13.84     $12.67    $11.00     $8.56
   Number of Units                             5,621,836  3,227,381 2,415,394 2,569,506
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --        --
   EOP Unit Value                                 $10.53         --        --        --
   Number of Units                                    --         --        --        --
---------------------------------------------------------------------------------------
AST William Blair International Growth (1997)
   With No Optional Benefits
   BOP Unit Value                                 $15.30     $13.39     $9.72
   EOP Unit Value                                 $17.54     $15.30    $13.39     $9.72
   Number of Units                            12,141,522 11,265,469 5,547,558   835,523
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --        --
   EOP Unit Value                                 $11.16         --        --        --
   Number of Units                                    --         --        --        --
---------------------------------------------------------------------------------------
AST LSV International Value
   With No Optional Benefits
   BOP Unit Value                                 $12.84     $10.79     $8.19
   EOP Unit Value                                 $14.36     $12.84    $10.79     $8.19
   Number of Units                             2,013,544  1,897,469 1,201,268   269,995
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --        --
   EOP Unit Value                                 $10.59         --        --        --
   Number of Units                                    --         --        --        --
---------------------------------------------------------------------------------------
AST MFS Global Equity (1999)
   With No Optional Benefits
   BOP Unit Value                                 $13.16     $11.30     $9.04
   EOP Unit Value                                 $13.92     $13.16    $11.30     $9.04
   Number of Units                             1,907,776  2,276,801 1,393,001   969,509
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --        --
   EOP Unit Value                                 $10.36         --        --        --
   Number of Units                                    --         --        --        --
---------------------------------------------------------------------------------------
AST Small-Cap Growth
   With No Optional Benefits
   BOP Unit Value                                  $9.05      $9.89     $6.92
   EOP Unit Value                                  $9.04      $9.05     $9.89     $6.92
   Number of Units                             2,134,730  2,242,129 3,292,593 1,970,250
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --        --
   EOP Unit Value                                 $10.31         --        --        --
   Number of Units                                    --         --        --        --
---------------------------------------------------------------------------------------
</R>

                                     A-63




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASL II - Prospectus (continued)

<R>
SUB-ACCOUNT                                 2005       2004       2003      2002
-----------------------------------------------------------------------------------
AST DeAM Small-Cap Growth (1999)
   With No Optional Benefits
   BOP Unit Value                            $11.98     $11.13      $7.67
   EOP Unit Value                            $11.83     $11.98     $11.13     $7.67
   Number of Units                        1,385,430  1,618,719  1,682,193   639,695
   With LT5, HDV, and EBP
   BOP Unit Value                                --         --         --
   EOP Unit Value                            $10.20         --         --        --
   Number of Units                               --         --         --        --
-----------------------------------------------------------------------------------
AST Federated Aggressive Growth (2000)
   With No Optional Benefits
   BOP Unit Value                            $15.42     $12.74      $7.64
   EOP Unit Value                            $16.60     $15.42     $12.74     $7.64
   Number of Units                        5,464,856  4,808,453  3,085,373 1,255,415
   With LT5, HDV, and EBP
   BOP Unit Value                                --         --         --
   EOP Unit Value                            $10.84         --         --        --
   Number of Units                               --         --         --        --
-----------------------------------------------------------------------------------
AST Goldman Sachs Small-Cap Value (1997)
   With No Optional Benefits
   BOP Unit Value                            $15.19     $12.85      $9.26
   EOP Unit Value                            $15.68     $15.19     $12.85     $9.26
   Number of Units                        1,243,642  1,541,896  1,504,296 1,492,775
   With LT5, HDV, and EBP
   BOP Unit Value                                --         --         --
   EOP Unit Value                            $10.44         --         --        --
   Number of Units                               --         --         --        --
-----------------------------------------------------------------------------------
AST Small-Cap Value (1997)
   With No Optional Benefits
   BOP Unit Value                            $14.22     $12.42      $9.30
   EOP Unit Value                            $14.91     $14.22     $12.42     $9.30
   Number of Units                       11,285,282 10,785,030 10,183,346 6,141,523
   With LT5, HDV, and EBP
   BOP Unit Value                                --         --         --
   EOP Unit Value                            $10.53         --         --        --
   Number of Units                               --         --         --        --
-----------------------------------------------------------------------------------
AST DeAM Small-Cap Value (2002)
   With No Optional Benefits
   BOP Unit Value                            $12.99     $10.81      $7.66
   EOP Unit Value                            $12.92     $12.99     $10.81     $7.66
   Number of Units                        2,106,236  2,143,020  1,134,865   423,387
   With LT5, HDV, and EBP
   BOP Unit Value                                --         --         --
   EOP Unit Value                             $9.90         --         --        --
   Number of Units                               --         --         --        --
-----------------------------------------------------------------------------------
</R>


                                     A-64



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASL II - Prospectus (continued)

<R>
SUB-ACCOUNT                                           2005       2004      2003      2002
--------------------------------------------------------------------------------------------
AST Goldman Sachs Mid-Cap Growth (2000)
   With No Optional Benefits
   BOP Unit Value                                      $11.80     $10.31     $7.97
   EOP Unit Value                                      $12.16     $11.80    $10.31     $7.97
   Number of Units                                  5,391,424  4,375,813 3,027,057 1,273,118
   With LT5, HDV, and EBP
   BOP Unit Value                                          --         --        --
   EOP Unit Value                                      $10.46         --        --        --
   Number of Units                                         --         --        --        --
--------------------------------------------------------------------------------------------
AST Neuberger Berman Mid-Cap Growth (1994)
   With No Optional Benefits
   BOP Unit Value                                      $10.86      $9.51     $7.41
   EOP Unit Value                                      $12.12     $10.86     $9.51     $7.41
   Number of Units                                  5,728,446  4,715,301 3,415,318 2,175,250
   With LT5, HDV, and EBP
   BOP Unit Value                                          --         --        --
   EOP Unit Value                                      $11.21         --        --        --
   Number of Units                                         --         --        --        --
--------------------------------------------------------------------------------------------
AST Neuberger Berman Mid-Cap Value (1993)
   With No Optional Benefits
   BOP Unit Value                                      $14.51     $12.01     $8.96
   EOP Unit Value                                      $15.99     $14.51    $12.01     $8.96
   Number of Units                                 12,260,007 11,461,684 8,530,129 5,118,558
   With LT5, HDV, and EBP
   BOP Unit Value                                          --         --        --
   EOP Unit Value                                      $10.76         --        --        --
   Number of Units                                         --         --        --        --
--------------------------------------------------------------------------------------------
AST Alger All-Cap Growth (2000)
 (merged into AST Neuberger Berman Mid-Cap Growth)
   With No Optional Benefits
   BOP Unit Value                                       $9.67      $9.07     $6.80
   EOP Unit Value                                      $11.10      $9.67     $9.07     $6.80
   Number of Units                                         --  1,798,457 2,002,166   658,419
   With LT5, HDV, and EBP
   BOP Unit Value                                          --         --        --
   EOP Unit Value                                      $11.59         --        --        --
   Number of Units                                         --         --        --        --
--------------------------------------------------------------------------------------------
AST Mid-Cap Value (2000)
 (formerly AST Gabelli All-Cap Value)
   With No Optional Benefits
   BOP Unit Value                                      $12.38     $10.91     $8.17
   EOP Unit Value                                      $12.83     $12.38    $10.91     $8.17
   Number of Units                                  1,988,252  2,587,064 2,513,413 1,200,225
   With LT5, HDV, and EBP
   BOP Unit Value                                          --         --        --
   EOP Unit Value                                      $10.24         --        --        --
   Number of Units                                         --         --        --        --
--------------------------------------------------------------------------------------------
</R>

                                     A-65




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASL II - Prospectus (continued)

<R>
SUB-ACCOUNT                                           2005       2004       2003       2002
----------------------------------------------------------------------------------------------
AST T. Rowe Price Natural Resources (1995)
   With No Optional Benefits
   BOP Unit Value                                      $16.25     $12.59      $9.59
   EOP Unit Value                                      $21.00     $16.25     $12.59      $9.59
   Number of Units                                  3,677,614  2,040,188  2,011,627    724,670
   With LT5, HDV, and EBP
   BOP Unit Value                                          --         --         --
   EOP Unit Value                                      $11.61         --         --         --
   Number of Units                                         --         --         --         --
----------------------------------------------------------------------------------------------
AST T. Rowe Price Large-Cap Growth
 (formerly AST AllianceBernstein Large-Cap Growth)
   With No Optional Benefits
   BOP Unit Value                                       $9.44      $9.08      $7.46
   EOP Unit Value                                      $10.81      $9.44      $9.08      $7.46
   Number of Units                                  3,925,740  2,378,881  2,098,873  1,869,353
   With LT5, HDV, and EBP
   BOP Unit Value                                          --         --         --
   EOP Unit Value                                      $11.98         --         --         --
   Number of Units                                         --         --         --         --
----------------------------------------------------------------------------------------------
AST MFS Growth (1999)
   With No Optional Benefits
   BOP Unit Value                                       $9.97      $9.16      $7.58
   EOP Unit Value                                      $10.43      $9.97      $9.16      $7.58
   Number of Units                                  5,915,443  4,529,834  4,784,269  2,930,432
   With LT5, HDV, and EBP
   BOP Unit Value                                          --         --         --
   EOP Unit Value                                      $10.64         --         --         --
   Number of Units                                         --         --         --         --
----------------------------------------------------------------------------------------------
AST Marsico Capital Growth (1997)
   With No Optional Benefits
   BOP Unit Value                                      $12.26     $10.78      $8.32
   EOP Unit Value                                      $12.88     $12.26     $10.78      $8.32
   Number of Units                                 32,140,125 28,117,310 20,138,164 10,144,317
   With LT5, HDV, and EBP
   BOP Unit Value                                          --         --         --
   EOP Unit Value                                      $10.78         --         --         --
   Number of Units                                         --         --         --         --
----------------------------------------------------------------------------------------------
AST Goldman Sachs Concentrated Growth (1992)
   With No Optional Benefits
   BOP Unit Value                                       $9.64      $9.45      $7.67
   EOP Unit Value                                       $9.80      $9.64      $9.45      $7.67
   Number of Units                                  2,531,900  2,785,100  2,053,023  1,349,939
   With LT5, HDV, and EBP
   BOP Unit Value                                          --         --         --
   EOP Unit Value                                      $10.64         --         --         --
   Number of Units                                         --         --         --         --
----------------------------------------------------------------------------------------------
</R>


                                     A-66



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASL II - Prospectus (continued)

<R>
SUB-ACCOUNT                                              2005      2004      2003      2002
----------------------------------------------------------------------------------------------
AST DeAM Large-Cap Value (2000)
   With No Optional Benefits
   BOP Unit Value                                         $12.53    $10.78     $8.66
   EOP Unit Value                                         $13.47    $12.53    $10.78     $8.66
   Number of Units                                     2,585,881 2,351,197 1,072,256   664,649
   With LT5, HDV, and EBP
   BOP Unit Value                                             --        --        --
   EOP Unit Value                                         $10.59        --        --        --
   Number of Units                                            --        --        --        --
----------------------------------------------------------------------------------------------
AST AllianceBernstein Growth + Value (2001)
 (merged into AST AllianceBernstein Managed Index 500)
   With No Optional Benefits
   BOP Unit Value                                         $10.72     $9.91     $7.99
   EOP Unit Value                                         $11.86    $10.72     $9.91     $7.99
   Number of Units                                            -- 1,620,391 1,387,072   965,912
   With LT5, HDV, and EBP
   BOP Unit Value                                             --        --        --
   EOP Unit Value                                         $11.21        --        --        --
   Number of Units                                            --        --        --        --
----------------------------------------------------------------------------------------------
AST AllianceBernstein Core Value (2001)
   With No Optional Benefits
   BOP Unit Value                                         $12.39    $11.06     $8.76
   EOP Unit Value                                         $12.86    $12.39    $11.06     $8.76
   Number of Units                                     4,311,857 4,643,022 3,621,862 6,005,922
   With LT5, HDV, and EBP
   BOP Unit Value                                             --        --        --
   EOP Unit Value                                         $10.20        --        --        --
   Number of Units                                            --        --        --        --
----------------------------------------------------------------------------------------------
AST Cohen & Steers Real Estate (1998)
   With No Optional Benefits
   BOP Unit Value                                         $18.49    $13.63    $10.08
   EOP Unit Value                                         $20.88    $18.49    $13.63    $10.08
   Number of Units                                     3,749,124 4,080,179 3,097,315 1,563,489
   With LT5, HDV, and EBP
   BOP Unit Value                                             --        --        --
   EOP Unit Value                                         $11.88        --        --        --
   Number of Units                                            --        --        --        --
----------------------------------------------------------------------------------------------
AST AllianceBernstein Managed Index 500 (1998)
   With No Optional Benefits
   BOP Unit Value                                         $11.07    $10.23     $8.17
   EOP Unit Value                                         $11.27    $11.07    $10.23     $8.17
   Number of Units                                     6,774,078 6,845,369 5,442,511 3,662,406
   With LT5, HDV, and EBP
   BOP Unit Value                                             --        --        --
   EOP Unit Value                                         $10.28        --        --        --
   Number of Units                                            --        --        --        --
----------------------------------------------------------------------------------------------
</R>

                                     A-67




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASL II - Prospectus (continued)

<R>
SUB-ACCOUNT                                         2005       2004       2003      2002
-------------------------------------------------------------------------------------------
AST American Century Income & Growth (1997)
   With No Optional Benefits
   BOP Unit Value                                    $11.57     $10.45      $8.25
   EOP Unit Value                                    $11.90     $11.57     $10.45     $8.25
   Number of Units                                4,205,655  4,670,846  2,115,438 1,751,136
   With LT5, HDV, and EBP
   BOP Unit Value                                        --         --         --
   EOP Unit Value                                    $10.22         --         --        --
   Number of Units                                       --         --         --        --
-------------------------------------------------------------------------------------------
AST AllianceBernstein Growth & Income (1992)
   With No Optional Benefits
   BOP Unit Value                                    $11.46     $10.50      $8.06
   EOP Unit Value                                    $11.81     $11.46     $10.50     $8.06
   Number of Units                               31,190,346 25,850,506 21,264,670 6,667,373
   With LT5, HDV, and EBP
   BOP Unit Value                                        --         --         --
   EOP Unit Value                                    $10.15         --         --        --
   Number of Units                                       --         --         --        --
-------------------------------------------------------------------------------------------
AST Large-Cap Value
 (formerly AST Hotchkis & Wiley Large-Cap Value)
   With No Optional Benefits
   BOP Unit Value                                    $11.17      $9.83      $8.34
   EOP Unit Value                                    $11.69     $11.17      $9.83     $8.34
   Number of Units                                5,245,455  3,717,848  2,647,064 2,110,071
   With LT5, HDV, and EBP
   BOP Unit Value                                        --         --         --
   EOP Unit Value                                    $10.44         --         --        --
   Number of Units                                       --         --         --        --
-------------------------------------------------------------------------------------------
AST Global Allocation (1993)
   With No Optional Benefits
   BOP Unit Value                                    $11.19     $10.24      $8.71
   EOP Unit Value                                    $11.77     $11.19     $10.24     $8.71
   Number of Units                                1,055,033  1,061,887    898,161   847,517
   With LT5, HDV, and EBP
   BOP Unit Value                                        --         --         --
   EOP Unit Value                                    $10.50         --         --        --
   Number of Units                                       --         --         --        --
-------------------------------------------------------------------------------------------
AST American Century Strategic Balanced (1997)
   With No Optional Benefits
   BOP Unit Value                                    $11.46     $10.69      $9.14
   EOP Unit Value                                    $11.79     $11.46     $10.69     $9.14
   Number of Units                                2,294,531  2,335,598  2,045,205 1,126,058
   With LT5, HDV, and EBP
   BOP Unit Value                                        --         --         --
   EOP Unit Value                                    $10.20         --         --        --
   Number of Units                                       --         --         --        --
-------------------------------------------------------------------------------------------
</R>


                                     A-68



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASL II - Prospectus (continued)

<R>
SUB-ACCOUNT                                      2005       2004       2003       2002
-----------------------------------------------------------------------------------------
AST T. Rowe Price Asset Allocation (1994)
   With No Optional Benefits
   BOP Unit Value                                 $12.13     $11.09      $9.09
   EOP Unit Value                                 $12.49     $12.13     $11.09      $9.09
   Number of Units                             4,192,626  3,551,315  2,243,566    921,329
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                 $10.24         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
AST T. Rowe Price Global Bond (1994)
   With No Optional Benefits
   BOP Unit Value                                 $13.45     $12.59     $11.34
   EOP Unit Value                                 $12.64     $13.45     $12.59     $11.34
   Number of Units                             6,261,824  4,717,822  2,962,471  1,739,313
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                  $9.34         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
AST High Yield
 (formerly AST Goldman Sachs High Yield Bond)
   With No Optional Benefits
   BOP Unit Value                                 $12.69     $11.61      $9.71
   EOP Unit Value                                 $12.62     $12.69     $11.61      $9.71
   Number of Units                             9,658,908 13,717,128 12,201,163  5,592,940
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                  $9.75         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
AST Lord Abbett Bond-Debenture (2000)
   With No Optional Benefits
   BOP Unit Value                                 $12.26     $11.61      $9.94
   EOP Unit Value                                 $12.20     $12.26     $11.61      $9.94
   Number of Units                            12,427,806  8,369,008  7,751,236  4,146,530
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                  $9.84         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
AST PIMCO Total Return Bond (1994)
   With No Optional Benefits
   BOP Unit Value                                 $11.31     $10.95     $10.57
   EOP Unit Value                                 $11.40     $11.31     $10.95     $10.57
   Number of Units                            22,436,395 33,208,757 26,287,388 20,544,075
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                 $10.04         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
</R>

                                     A-69




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASL II - Prospectus (continued)

<R>
SUB-ACCOUNT                                      2005       2004       2003       2002
-----------------------------------------------------------------------------------------
AST PIMCO Limited Maturity Bond (1995)
   With No Optional Benefits
   BOP Unit Value                                 $10.55     $10.51     $10.34
   EOP Unit Value                                 $10.54     $10.55     $10.51     $10.34
   Number of Units                            28,031,653 21,299,789 15,242,856 11,274,642
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                  $9.94         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
AST Money Market (1992)
   With No Optional Benefits
   BOP Unit Value                                  $9.78      $9.86      $9.96
   EOP Unit Value                                  $9.88      $9.78      $9.86      $9.96
   Number of Units                            42,442,274 29,870,585 32,730,501 36,255,772
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                  $9.99         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
SP William Blair International Growth
   With No Optional Benefits
   BOP Unit Value                                 $10.53         --         --
   EOP Unit Value                                 $12.05     $10.53         --         --
   Number of Units                               672,243    269,671         --         --
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                 $11.18         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
Gartmore Variable Investment Trust -
 GVIT Developing Markets (1996)
   With No Optional Benefits
   BOP Unit Value                                 $16.02     $13.60      $8.66
   EOP Unit Value                                 $20.72     $16.02     $13.60      $8.66
   Number of Units                             3,395,891  2,103,950  1,763,660    283,466
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                 $11.93         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
Wells Fargo Advantage VT Equity Income (1999)
 (formerly WFVT Advantage Equity Income)
   With No Optional Benefits
   BOP Unit Value                                 $11.18     $10.23      $8.25
   EOP Unit Value                                 $11.59     $11.18     $10.23      $8.25
   Number of Units                               534,649    590,808    314,757    196,720
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --         --
   EOP Unit Value                                 $10.08         --         --         --
   Number of Units                                    --         --         --         --
-----------------------------------------------------------------------------------------
</R>


                                     A-70



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASL II - Prospectus (continued)

<R>
 SUB-ACCOUNT                                   2005     2004    2003    2002
 -----------------------------------------------------------------------------
 AIM V.I. -- Dynamics (1999)
    With No Optional Benefits
    BOP Unit Value                              $10.72   $9.61   $7.09
    EOP Unit Value                              $11.67  $10.72   $9.61   $7.09
    Number of Units                            602,064 668,032 889,464 543,762
    With LT5, HDV, and EBP
    BOP Unit Value                                  --      --      --
    EOP Unit Value                              $10.80      --      --      --
    Number of Units                                 --      --      --      --
 -----------------------------------------------------------------------------
 AIM V.I. -- Technology (1999)
    With No Optional Benefits
    BOP Unit Value                               $8.09   $7.87   $5.50
    EOP Unit Value                               $8.13   $8.09   $7.87   $5.50
    Number of Units                            453,391 512,424 578,651 293,307
    With LT5, HDV, and EBP
    BOP Unit Value                                  --      --      --
    EOP Unit Value                              $10.60      --      --      --
    Number of Units                                 --      --      --      --
 -----------------------------------------------------------------------------
 AIM V.I. -- Global Health Care (1999)
  (formerly AIM V.I. -- Health Sciences)
    With No Optional Benefits
    BOP Unit Value                              $10.64  $10.05   $8.00
    EOP Unit Value                              $11.31  $10.64  $10.05   $8.00
    Number of Units                          1,131,375 937,586 698,364 475,873
    With LT5, HDV, and EBP
    BOP Unit Value                                  --      --      --
    EOP Unit Value                              $11.04      --      --      --
    Number of Units                                 --      --      --      --
 -----------------------------------------------------------------------------
 AIM V.I. -- Financial Services (1999)
    With No Optional Benefits
    BOP Unit Value                              $11.94  $11.17   $8.76
    EOP Unit Value                              $12.43  $11.94  $11.17   $8.76
    Number of Units                          1,042,992 585,185 607,265 366,258
    With LT5, HDV, and EBP
    BOP Unit Value                                  --      --      --
    EOP Unit Value                              $10.62      --      --      --
    Number of Units                                 --      --      --      --
 -----------------------------------------------------------------------------
 Evergreen VA -- International Equity (2000)
    With No Optional Benefits
    BOP Unit Value                              $13.66  $11.65   $8.15
    EOP Unit Value                              $15.59  $13.66  $11.65   $8.15
    Number of Units                            689,816 414,631 189,143 113,389
    With LT5, HDV, and EBP
    BOP Unit Value                                  --      --      --
    EOP Unit Value                              $10.88      --      --      --
    Number of Units                                 --      --      --      --
 -----------------------------------------------------------------------------
</R>

                                     A-71




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASL II - Prospectus (continued)

<R>
  SUB-ACCOUNT                             2005      2004      2003     2002
  ---------------------------------------------------------------------------
  Evergreen VA -- Special Equity (1999)
   (merged into Evergreen VA Growth)
     With No Optional Benefits
     BOP Unit Value                        $11.58    $11.12     $7.44
     EOP Unit Value                        $10.31    $11.58    $11.12   $7.44
     Number of Units                          169   702,642   815,621 127,728
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                         $9.26        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
  Evergreen VA -- Omega (2000)
     With No Optional Benefits
     BOP Unit Value                        $11.29    $10.71     $7.78
     EOP Unit Value                        $11.53    $11.29    $10.71   $7.78
     Number of Units                      281,775   570,123   404,789  39,943
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                        $10.50        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
  Evergreen VA Growth Fund
     With No Optional Benefits
     BOP Unit Value                            --        --        --      --
     EOP Unit Value                        $11.44        --        --      --
     Number of Units                      606,614        --        --      --
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                        $11.33        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
  ProFund VP -- Europe 30 (1999)
     With No Optional Benefits
     BOP Unit Value                        $12.17    $10.83     $7.93
     EOP Unit Value                        $12.94    $12.17    $10.83   $7.93
     Number of Units                    1,133,421 1,812,435 2,116,400 292,396
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                        $10.41        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
  ProFund VP -- Asia 30 (2002)
     With No Optional Benefits
     BOP Unit Value                        $12.30    $12.57     $7.75
     EOP Unit Value                        $14.45    $12.30    $12.57   $7.75
     Number of Units                    1,723,105   896,010   942,605 281,993
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                        $11.10        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
</R>


                                     A-72



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASL II - Prospectus (continued)

<R>
   SUB-ACCOUNT                              2005     2004     2003     2002
   --------------------------------------------------------------------------
   ProFund VP -- Japan (2002)
      With No Optional Benefits
      BOP Unit Value                          $9.55   $9.03     $7.24
      EOP Unit Value                         $13.31   $9.55     $9.03   $7.24
      Number of Units                     3,413,955 710,879   426,718  65,845
      With LT5, HDV, and EBP
      BOP Unit Value                             --      --        --
      EOP Unit Value                         $13.38      --        --      --
      Number of Units                            --      --        --      --
   --------------------------------------------------------------------------
   ProFund VP -- Banks (2002)
      With No Optional Benefits
      BOP Unit Value                         $11.98  $10.90     $8.56
      EOP Unit Value                         $11.77  $11.98    $10.90   $8.56
      Number of Units                       351,876 229,711    93,067 101,136
      With LT5, HDV, and EBP
      BOP Unit Value                             --      --        --
      EOP Unit Value                         $10.10      --        --      --
      Number of Units                            --      --        --      --
   --------------------------------------------------------------------------
   ProFund VP -- Basic Materials (2002)
      With No Optional Benefits
      BOP Unit Value                         $11.87  $10.95     $8.46
      EOP Unit Value                         $11.96  $11.87    $10.95   $8.46
      Number of Units                       681,692 529,237 1,512,864  76,331
      With LT5, HDV, and EBP
      BOP Unit Value                             --      --        --
      EOP Unit Value                          $9.48      --        --      --
      Number of Units                            --      --        --      --
   --------------------------------------------------------------------------
   ProFund VP -- Biotechnology (2001)
      With No Optional Benefits
      BOP Unit Value                         $10.52   $9.75     $7.09
      EOP Unit Value                         $12.34  $10.52     $9.75   $7.09
      Number of Units                       697,686 757,678   208,971 130,082
      With LT5, HDV, and EBP
      BOP Unit Value                             --      --        --
      EOP Unit Value                         $13.48      --        --      --
      Number of Units                            --      --        --      --
   --------------------------------------------------------------------------
   ProFund VP -- Consumer Services (2002)
      With No Optional Benefits
      BOP Unit Value                          $9.56   $9.04     $7.25
      EOP Unit Value                          $8.97   $9.56     $9.04   $7.25
      Number of Units                        86,431 430,620   136,269 128,022
      With LT5, HDV, and EBP
      BOP Unit Value                             --      --        --
      EOP Unit Value                          $9.66      --        --      --
      Number of Units                            --      --        --      --
   --------------------------------------------------------------------------
</R>

                                     A-73




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASL II - Prospectus (continued)

<R>
   SUB-ACCOUNT                           2005      2004      2003     2002
   -------------------------------------------------------------------------
   ProFund VP -- Consumer Goods (2002)
      With No Optional Benefits
      BOP Unit Value                      $10.36     $9.64     $8.28
      EOP Unit Value                      $10.15    $10.36     $9.64   $8.28
      Number of Units                    161,037   369,007    58,425 148,446
      With LT5, HDV, and EBP
      BOP Unit Value                          --        --        --
      EOP Unit Value                       $9.73        --        --      --
      Number of Units                         --        --        --      --
   -------------------------------------------------------------------------
   ProFund VP -- Oil & Gas (2001)
      With No Optional Benefits
      BOP Unit Value                      $13.33    $10.48     $8.71
      EOP Unit Value                      $17.22    $13.33    $10.48   $8.71
      Number of Units                  2,573,776 1,856,882 1,225,844 299,833
      With LT5, HDV, and EBP
      BOP Unit Value                          --        --        --
      EOP Unit Value                      $10.92        --        --      --
      Number of Units                         --        --        --      --
   -------------------------------------------------------------------------
   ProFund VP -- Financials (2001)
      With No Optional Benefits
      BOP Unit Value                      $12.19    $11.23     $8.85
      EOP Unit Value                      $12.46    $12.19    $11.23   $8.85
      Number of Units                    616,873   553,342   398,159 221,377
      With LT5, HDV, and EBP
      BOP Unit Value                          --        --        --
      EOP Unit Value                      $10.53        --        --      --
      Number of Units                         --        --        --      --
   -------------------------------------------------------------------------
   ProFund VP -- Health Care (2001)
      With No Optional Benefits
      BOP Unit Value                       $9.23     $9.17     $7.94
      EOP Unit Value                       $9.63     $9.23     $9.17   $7.94
      Number of Units                  2,175,821 1,318,525   707,449 388,508
      With LT5, HDV, and EBP
      BOP Unit Value                          --        --        --
      EOP Unit Value                      $10.46        --        --      --
      Number of Units                         --        --        --      --
   -------------------------------------------------------------------------
   ProFund VP -- Industrials (2002)
      With No Optional Benefits
      BOP Unit Value                      $11.15    $10.01     $7.93
      EOP Unit Value                      $11.23    $11.15    $10.01   $7.93
      Number of Units                    211,677   253,411   318,339  12,642
      With LT5, HDV, and EBP
      BOP Unit Value                          --        --        --
      EOP Unit Value                      $10.06        --        --      --
      Number of Units                         --        --        --      --
   -------------------------------------------------------------------------
</R>


                                     A-74



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASL II - Prospectus (continued)

<R>
  SUB-ACCOUNT                            2005      2004      2003      2002
  ----------------------------------------------------------------------------
  ProFund VP -- Internet (2002)
     With No Optional Benefits
     BOP Unit Value                       $17.89    $15.00     $8.57
     EOP Unit Value                       $18.90    $17.89    $15.00     $8.57
     Number of Units                     467,320   992,879   206,876   306,572
     With LT5, HDV, and EBP
     BOP Unit Value                           --        --        --
     EOP Unit Value                       $12.71        --        --        --
     Number of Units                          --        --        --        --
  ----------------------------------------------------------------------------
  ProFund VP -- Pharmaceuticals (2002)
     With No Optional Benefits
     BOP Unit Value                        $7.93     $8.89     $8.56
     EOP Unit Value                        $7.51     $7.93     $8.89     $8.56
     Number of Units                     515,768   527,336   266,978   136,559
     With LT5, HDV, and EBP
     BOP Unit Value                           --        --        --
     EOP Unit Value                        $9.44        --        --        --
     Number of Units                          --        --        --        --
  ----------------------------------------------------------------------------
  ProFund VP -- Precious Metals (2002)
     With No Optional Benefits
     BOP Unit Value                       $11.77    $13.29     $9.70
     EOP Unit Value                       $14.62    $11.77    $13.29     $9.70
     Number of Units                   2,426,530 1,479,384 1,329,806 1,175,651
     With LT5, HDV, and EBP
     BOP Unit Value                           --        --        --
     EOP Unit Value                       $12.00        --        --        --
     Number of Units                          --        --        --        --
  ----------------------------------------------------------------------------
  ProFund VP -- Real Estate (2001)
     With No Optional Benefits
     BOP Unit Value                       $16.15    $12.91     $9.86
     EOP Unit Value                       $16.96    $16.15    $12.91     $9.86
     Number of Units                     501,989 1,816,706   462,906   441,318
     With LT5, HDV, and EBP
     BOP Unit Value                           --        --        --
     EOP Unit Value                       $11.17        --        --        --
     Number of Units                          --        --        --        --
  ----------------------------------------------------------------------------
  ProFund VP -- Semiconductor (2002)
     With No Optional Benefits
     BOP Unit Value                        $7.15     $9.51     $5.14
     EOP Unit Value                        $7.64     $7.15     $9.51     $5.14
     Number of Units                     746,085   694,352   423,958    93,241
     With LT5, HDV, and EBP
     BOP Unit Value                           --        --        --
     EOP Unit Value                       $10.65        --        --        --
     Number of Units                          --        --        --        --
  ----------------------------------------------------------------------------
</R>

                                     A-75




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASL II - Prospectus (continued)

<R>
SUB-ACCOUNT                               2005      2004      2003      2002
-------------------------------------------------------------------------------
ProFund VP -- Technology (2001)
   With No Optional Benefits
   BOP Unit Value                           $8.48     $8.66     $6.03
   EOP Unit Value                           $8.45     $8.48     $8.66     $6.03
   Number of Units                        577,739   727,580   497,972   254,131
   With LT5, HDV, and EBP
   BOP Unit Value                              --        --        --
   EOP Unit Value                          $10.54        --        --        --
   Number of Units                             --        --        --        --
-------------------------------------------------------------------------------
ProFund VP -- Telecommunications (2001)
   With No Optional Benefits
   BOP Unit Value                           $8.19     $7.21     $7.15
   EOP Unit Value                           $7.52     $8.19     $7.21     $7.15
   Number of Units                        456,586   460,848   398,350   272,408
   With LT5, HDV, and EBP
   BOP Unit Value                              --        --        --
   EOP Unit Value                           $9.74        --        --        --
   Number of Units                             --        --        --        --
-------------------------------------------------------------------------------
ProFund VP -- Utilities (2001)
   With No Optional Benefits
   BOP Unit Value                          $11.13     $9.34     $7.83
   EOP Unit Value                          $12.37    $11.13     $9.34     $7.83
   Number of Units                      1,996,877 1,060,939   618,427   521,419
   With LT5, HDV, and EBP
   BOP Unit Value                              --        --        --
   EOP Unit Value                          $10.60        --        --        --
   Number of Units                             --        --        --        --
-------------------------------------------------------------------------------
ProFund VP -- Bull (2002)
   With No Optional Benefits
   BOP Unit Value                          $10.53     $9.84     $7.97
   EOP Unit Value                          $10.64    $10.53     $9.84     $7.97
   Number of Units                      7,846,866 8,215,357 3,563,562   954,792
   With LT5, HDV, and EBP
   BOP Unit Value                              --        --        --
   EOP Unit Value                          $10.12        --        --        --
   Number of Units                             --        --        --        --
-------------------------------------------------------------------------------
ProFund VP -- Bear (2001)
   With No Optional Benefits
   BOP Unit Value                           $7.45     $8.44    $11.38
   EOP Unit Value                           $7.23     $7.45     $8.44    $11.38
   Number of Units                      2,169,662 1,202,243 1,886,515 1,532,543
   With LT5, HDV, and EBP
   BOP Unit Value                              --        --        --
   EOP Unit Value                           $9.54        --        --        --
   Number of Units                             --        --        --        --
-------------------------------------------------------------------------------
</R>


                                     A-76



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASL II - Prospectus (continued)

<R>
   SUB-ACCOUNT                          2005      2004      2003      2002
   --------------------------------------------------------------------------
   ProFund VP -- Ultra Bull (2001)
      With No Optional Benefits
      BOP Unit Value                     $11.76    $10.20     $6.78
      EOP Unit Value                     $11.87    $11.76    $10.20     $6.78
      Number of Units                 1,158,025 2,817,803 1,431,345   297,435
      With LT5, HDV, and EBP
      BOP Unit Value                         --        --        --
      EOP Unit Value                     $10.25        --        --        --
      Number of Units                        --        --        --        --
   --------------------------------------------------------------------------
   ProFund VP -- OTC (2001)
      With No Optional Benefits
      BOP Unit Value                      $9.94     $9.32     $6.45
      EOP Unit Value                      $9.80     $9.94     $9.32     $6.45
      Number of Units                 2,467,486 4,885,351 4,445,234 1,346,852
      With LT5, HDV, and EBP
      BOP Unit Value                         --        --        --
      EOP Unit Value                     $10.55        --        --        --
      Number of Units                        --        --        --        --
   --------------------------------------------------------------------------
   ProFund VP -- Short OTC (2002)
      With No Optional Benefits
      BOP Unit Value                      $5.93     $6.78    $11.00
      EOP Unit Value                      $5.88     $5.93     $6.78    $11.00
      Number of Units                 2,494,112   908,064 1,535,439   433,181
      With LT5, HDV, and EBP
      BOP Unit Value                         --        --        --
      EOP Unit Value                      $9.14        --        --        --
      Number of Units                        --        --        --        --
   --------------------------------------------------------------------------
   ProFund VP -- UltraOTC (1999)
      With No Optional Benefits
      BOP Unit Value                      $7.89     $7.03     $3.53
      EOP Unit Value                      $7.47     $7.89     $7.03     $3.53
      Number of Units                 4,740,165 6,592,447 3,410,589 1,003,123
      With LT5, HDV, and EBP
      BOP Unit Value                         --        --        --
      EOP Unit Value                     $11.04        --        --        --
      Number of Units                        --        --        --        --
   --------------------------------------------------------------------------
   ProFund VP -- Mid-Cap Value (2002)
      With No Optional Benefits
      BOP Unit Value                     $11.67    $10.23     $7.66
      EOP Unit Value                     $12.49    $11.67    $10.23     $7.66
      Number of Units                 2,164,543 2,632,869 1,455,513   438,387
      With LT5, HDV, and EBP
      BOP Unit Value                         --        --        --
      EOP Unit Value                     $10.60        --        --        --
      Number of Units                        --        --        --        --
   --------------------------------------------------------------------------
</R>

                                     A-77




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASL II - Prospectus (continued)

<R>
  SUB-ACCOUNT                             2005      2004      2003     2002
  ---------------------------------------------------------------------------
  ProFund VP -- Mid-Cap Growth (2002)
     With No Optional Benefits
     BOP Unit Value                        $10.58     $9.69     $7.70
     EOP Unit Value                        $11.58    $10.58     $9.69   $7.70
     Number of Units                    5,059,311 2,220,901 1,009,867 439,054
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                        $10.76        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
  ProFund VP -- UltraMid-Cap (2002)
     With No Optional Benefits
     BOP Unit Value                        $11.99     $9.55     $5.71
     EOP Unit Value                        $13.91    $11.99     $9.55   $5.71
     Number of Units                    1,935,487 3,106,849 1,112,311 477,953
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                        $11.38        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
  ProFund VP -- Small-Cap Value (2002)
     With No Optional Benefits
     BOP Unit Value                        $11.10     $9.39     $7.09
     EOP Unit Value                        $11.35    $11.10     $9.39   $7.09
     Number of Units                    1,398,442 4,088,760 5,144,632 994,778
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                        $10.30        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
  ProFund VP -- Small-Cap Growth (2002)
     With No Optional Benefits
     BOP Unit Value                        $11.98    $10.16     $7.69
     EOP Unit Value                        $12.67    $11.98    $10.16   $7.69
     Number of Units                    4,579,887 4,677,820 3,868,951 772,260
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                        $10.48        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
  ProFund VP Large-Cap Growth
     With No Optional Benefits
     BOP Unit Value                        $10.37        --        --
     EOP Unit Value                        $10.30    $10.37        --      --
     Number of Units                    2,620,751    72,725        --      --
     With LT5, HDV, and EBP
     BOP Unit Value                            --        --        --
     EOP Unit Value                         $9.98        --        --      --
     Number of Units                           --        --        --      --
  ---------------------------------------------------------------------------
</R>


                                     A-78



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASL II - Prospectus (continued)

<R>
SUB-ACCOUNT                                 2005      2004      2003      2002
---------------------------------------------------------------------------------
ProFund VP Large-Cap Value
   With No Optional Benefits
   BOP Unit Value                            $10.37        --        --
   EOP Unit Value                            $10.51    $10.37        --        --
   Number of Units                        2,141,308   159,605        --        --
   With LT5, HDV, and EBP
   BOP Unit Value                                --        --        --
   EOP Unit Value                            $10.20        --        --        --
   Number of Units                               --        --        --        --
---------------------------------------------------------------------------------
ProFund VP Short Mid-Cap
   With No Optional Benefits
   BOP Unit Value                             $9.70        --        --
   EOP Unit Value                             $8.64     $9.70        --        --
   Number of Units                          364,782    39,360        --        --
   With LT5, HDV, and EBP
   BOP Unit Value                                --        --        --
   EOP Unit Value                             $8.94        --        --        --
   Number of Units                               --        --        --        --
---------------------------------------------------------------------------------
ProFund VP Short Small-Cap
   With No Optional Benefits
   BOP Unit Value                             $9.54        --        --
   EOP Unit Value                             $9.11     $9.54         -         -
   Number of Units                          220,843  $136,809        --        --
   With LT5, HDV, and EBP
   BOP Unit Value                                --        --        --
   EOP Unit Value                             $9.17        --        --        --
   Number of Units                               --        --        --        --
---------------------------------------------------------------------------------
ProFund VP -- UltraSmall-Cap (1999)
   With No Optional Benefits
   BOP Unit Value                            $15.52    $12.04     $6.14
   EOP Unit Value                            $15.23    $15.52    $12.04     $6.14
   Number of Units                          816,755 5,098,565 1,702,558   212,085
   With LT5, HDV, and EBP
   BOP Unit Value                                --        --        --
   EOP Unit Value                            $10.66        --        --        --
   Number of Units                               --        --        --        --
---------------------------------------------------------------------------------
ProFund VP -- U.S. Government Plus (2002)
   With No Optional Benefits
   BOP Unit Value                            $11.79    $11.08    $11.56
   EOP Unit Value                            $12.64    $11.79    $11.08    $11.56
   Number of Units                        2,312,868 1,051,158   731,470 2,486,854
   With LT5, HDV, and EBP
   BOP Unit Value                                --        --        --
   EOP Unit Value                            $10.54        --        --        --
   Number of Units                               --        --        --        --
---------------------------------------------------------------------------------
</R>

                                     A-79




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

ASL II - Prospectus (continued)

<R>
SUB-ACCOUNT                                     2005      2004      2003     2002
-----------------------------------------------------------------------------------
ProFund VP -- Rising Rates Opportunity (2002)
   With No Optional Benefits
   BOP Unit Value                                 $6.63     $7.56     $8.02
   EOP Unit Value                                 $6.00     $6.63     $7.56   $8.02
   Number of Units                            3,415,324 5,314,528 1,817,924 165,792
   With LT5, HDV, and EBP
   BOP Unit Value                                    --        --        --
   EOP Unit Value                                 $9.08        --        --      --
   Number of Units                                   --        --        --      --
-----------------------------------------------------------------------------------
Access VP High Yield
   With No Optional Benefits
   BOP Unit Value                                    --        --        --      --
   EOP Unit Value                                $10.56        --        --      --
   Number of Units                              899,141        --        --      --
   With LT5, HDV, and EBP
   BOP Unit Value                                    --        --        --
   EOP Unit Value                                $10.47        --        --      --
   Number of Units                                   --        --        --      --
-----------------------------------------------------------------------------------
First Trust(R) 10 Uncommon Values (2000)
   With No Optional Benefits
   BOP Unit Value                                $10.03     $9.16     $6.80
   EOP Unit Value                                 $9.92    $10.03     $9.16   $6.80
   Number of Units                               87,726    91,924    66,435  19,826
   With LT5, HDV, and EBP
   BOP Unit Value                                    --        --        --
   EOP Unit Value                                 $9.74        --        --      --
   Number of Units                                   --        --        --      --
-----------------------------------------------------------------------------------
First Trust Global Dividend Target 15
   With No Optional Benefits
   BOP Unit Value                                $11.85        --        --
   EOP Unit Value                                $12.84    $11.85        --      --
   Number of Units                              590,605   311,233        --      --
   With LT5, HDV, and EBP
   BOP Unit Value                                    --        --        --
   EOP Unit Value                                $10.83        --        --      --
   Number of Units                                   --        --        --      --
-----------------------------------------------------------------------------------
First Trust Managed VIP
   With No Optional Benefits
   BOP Unit Value                                $11.32        --        --
   EOP Unit Value                                $11.94    $11.32        --      --
   Number of Units                            2,420,873 1,777,316        --      --
   With LT5, HDV, and EBP
   BOP Unit Value                                    --        --        --
   EOP Unit Value                                $10.43        --        --      --
   Number of Units                                   --        --        --      --
-----------------------------------------------------------------------------------
</R>


                                     A-80



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


ASL II - Prospectus (continued)

<R>
        SUB-ACCOUNT                           2005     2004   2003 2002
        ---------------------------------------------------------------
        First Trust NASDAQ Target 15
           With No Optional Benefits
           BOP Unit Value                      $10.66      --  --
           EOP Unit Value                      $10.83  $10.66  --   --
           Number of Units                    134,177  82,809  --   --
           With LT5, HDV, and EBP
           BOP Unit Value                          --      --  --
           EOP Unit Value                      $10.75      --  --   --
           Number of Units                         --      --  --   --
        ---------------------------------------------------------------
        First Trust S&P Target 24
           With No Optional Benefits
           BOP Unit Value                      $10.75      --  --
           EOP Unit Value                      $11.01  $10.75  --   --
           Number of Units                    304,840 173,851  --   --
           With LT5, HDV, and EBP
           BOP Unit Value                          --      --  --
           EOP Unit Value                      $10.48      --  --   --
           Number of Units                         --      --  --   --
        ---------------------------------------------------------------
        First Trust The Dow Target 10
           With No Optional Benefits
           BOP Unit Value                      $10.48      --  --
           EOP Unit Value                       $9.98  $10.48  --   --
           Number of Units                    194,864 155,695  --   --
           With LT5, HDV, and EBP
           BOP Unit Value                          --      --  --
           EOP Unit Value                       $9.53      --  --   --
           Number of Units                         --      --  --   --
        ---------------------------------------------------------------
        First Trust The Dow Target Dividend
           With No Optional Benefits
           BOP Unit Value                          --      --  --
           EOP Unit Value                       $9.76      --  --   --
           Number of Units                  1,240,527      --  --   --
           With LT5, HDV, and EBP
           BOP Unit Value                          --      --  --
           EOP Unit Value                       $9.67      --  --   --
           Number of Units                         --      --  --   --
        ---------------------------------------------------------------
        First Trust Value Line Target 25
           With No Optional Benefits
           BOP Unit Value                      $12.59      --  --
           EOP Unit Value                      $14.82  $12.59  --   --
           Number of Units                  1,068,339 389,792  --   --
           With LT5, HDV, and EBP
           BOP Unit Value                          --      --  --
           EOP Unit Value                      $11.11      --  --   --
           Number of Units                         --      --  --   --
        ---------------------------------------------------------------
</R>

                                     A-81




APPENDIX B

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix B -- Calculation of Optional Death Benefits

Examples of Enhanced Beneficiary Protection Optional Death Benefit Calculation
The following are examples of how the Enhanced Beneficiary Protection Optional
Death Benefit is calculated. Each example assumes that a $50,000 initial
Purchase Payment is made. Each example assumes that there is one Owner who is
age 50 on the Issue Date and that all Account Value is maintained in the
variable investment options. The formula for determining the Enhanced
Beneficiary Protection Optional Death Benefit is as follows:

    Growth  =    Account Value of variable    minus   Purchase Payments -
              investment options plus Interim       proportional withdrawals
                Value of Fixed Allocations
                     (no MVA applies)

Example with market increase
Assume that the Owner has made no withdrawals and that the Account Value has
been increasing due to positive market performance. On the date we receive due
proof of death, the Account Value is $75,000. The basic Death Benefit is
calculated as Purchase Payments minus proportional withdrawals, or Account
Value, which ever is greater. Therefore, the basic Death Benefit is equal to
$75,000. The Enhanced Beneficiary Protection Optional Death Benefit is equal to
the amount payable under the basic Death Benefit ($75,000) PLUS 40% of the
"Growth" under the Annuity.

                      Growth                                        =$75,000 - [$50,000 - $0]
                                                                    =$25,000
                      Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth
                                                                    =$25,000 X 0.40
                                                                    =$10,000
                      Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit
                                                                    =$85,000

Examples with market decline
Assume that the Owner has made no withdrawals and that the Account Value has
been decreasing due to declines in market performance. On the date we receive
due proof of death, the Account Value is $45,000. The basic Death Benefit is
calculated as Purchase Payments minus proportional withdrawals, or Account
Value, which ever is greater. Therefore, the basic Death Benefit is equal to
$50,000. The Enhanced Beneficiary Protection Optional Death Benefit is equal to
the amount payable under the basic Death Benefit ($50,000) PLUS the "Growth"
under the Annuity.

                      Growth                                        =$45,000 - [$50,000 - $0]
                                                                    =$-5,000
                      Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth
                                                                    NO BENEFIT IS PAYABLE
                      Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit
                                                                    =$50,000


                                      B-1

APPENDIX B

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix B -- Calculation of Optional Death Benefits continued

In this example you would receive no additional benefit from purchasing the
Enhanced Beneficiary Protection Optional Death Benefit.

Example with market increase and withdrawals
Assume that the Account Value has been increasing due to positive market
performance and the Owner made a withdrawal of $15,000 in Annuity Year 5 when
the Account Value was $75,000. On the date we receive due proof of death, the
Account Value is $90,000. The basic Death Benefit is calculated as Purchase
Payments minus proportional withdrawals, or Account Value, which ever is
greater. Therefore, the basic Death Benefit is equal to $90,000. The Enhanced
Beneficiary Protection Optional Death Benefit is equal to the amount payable
under the basic Death Benefit ($90,000) PLUS 40% of the "Growth" under the
Annuity.

Growth =$90,000 - [$50,000 - ($50,000 X $15,000/$75,000)]
=$90,000 - [$50,000 - $10,000]
=$90,000 - $40,000
=$50,000
Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth
=$50,000 X 0.40
=$20,000
Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit
=$110,000

EXAMPLES OF HIGHEST ANNIVERSARY VALUE DEATH BENEFIT CALCULATION
The following are examples of how the Highest Anniversary Value Death Benefit
is calculated. Each example assumes an initial Purchase Payment of $50,000.
Each example assumes that there is one Owner who is age 70 on the Issue Date
and that all Account Value is maintained in the variable investment options.

Example with market increase and death before Death Benefit Target Date
Assume that the Owner's Account Value has generally been increasing due to
positive market performance and that no withdrawals have been made. On the date
we receive due proof of death, the Account Value is $75,000; however, the
Anniversary Value on the 5/th /anniversary of the Issue Date was $90,000.
Assume as well that the Owner has died before the Death Benefit Target Date.
The Death Benefit is equal to the greater of the Highest Anniversary Value or
the basic Death Benefit. The Death Benefit would be the Highest Anniversary
Value ($90,000) because it is greater than the amount that would have been
payable under the basic Death Benefit ($75,000).

Example with withdrawals
Assume that the Account Value has been increasing due to positive market
performance and the Owner made a withdrawal of $15,000 in Annuity Year 7 when
the Account Value was $75,000. On the date we receive due proof of death, the
Account Value is $80,000; however, the Anniversary Value on the 5/th
/anniversary of the Issue Date was $90,000. Assume as well that the Owner has
died before the Death Benefit Target Date. The Death Benefit is equal to the
greater of the Highest Anniversary Value or the basic Death Benefit.

Highest Anniversary Value =$90,000 - [$90,000 X $15,000/$75,000]
=$90,000 - $18,000
=$72,000
Basic Death Benefit =max [$80,000, $50,000 - ($50,000 X $15,000/$75,000)]
=max [$80,000, $40,000]
=$80,000

The Death Benefit therefore is $80,000.

B-2

APPENDIX B

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Example with death after Death Benefit Target Date
Assume that the Owner's Account Value has generally been increasing due to
positive market performance and that no withdrawals had been made prior to the
Death Benefit Target Date. Further assume that the Owner dies after the Death
Benefit Target Date, when the Account Value is $75,000. The Highest Anniversary
Value on the Death Benefit Target Date was $80,000; however, following the
Death Benefit Target Date, the Owner made a Purchase Payment of $15,000 and
later had taken a withdrawal of $5,000 when the Account Value was $70,000. The
Death Benefit is equal to the greater of the Highest Anniversary Value plus
Purchase Payments minus proportional withdrawals after the Death Benefit Target
Date or the basic Death Benefit.

Highest Anniversary Value =$80,000 + $15,000 - [($ 80,000 + $15,000) X $5,000/$70,000]
=$80,000 + $15,000 - $6,786
=$88,214
Basic Death Benefit =max [$75,000, ($50,000 + $15,000) - {($50,000 + $15,000) X $5,000/$70,000}]
=max [$75,000, $60,357]
=$75,000

The Death Benefit therefore is $88,214.

EXAMPLES OF COMBINATION 5% ROLL-UP AND HIGHEST ANNIVERSARY VALUE DEATH BENEFIT
CALCULATION
The following are examples of how the Combination 5% Roll-Up and Highest
Anniversary Value Death Benefit are calculated. Each example assumes an initial
Purchase Payment of $50,000. Each example assumes that there is one Owner who
is age 70 on the Issue Date and that all Account Value is maintained in the
variable investment options.

Example with market increase and death before Death Benefit Target Date
Assume that the Owner's Account Value has generally been increasing due to
positive market performance and that no withdrawals have been made. On the 7/th
/anniversary of the Issue Date we receive due proof of death, at which time the
Account Value is $75,000; however, the Anniversary Value on the 5/th
/anniversary of the Issue Date was $90,000. Assume as well that the Owner has
died before the Death Benefit Target Date. The Roll-Up Value is equal to
initial Purchase Payment accumulated at 5% for 6 years, or $67,005. The Death
Benefit is equal to the greatest of the Roll-Up Value, Highest Anniversary
Value or the basic Death Benefit. The Death Benefit would be the Highest
Anniversary Value ($90,000) because it is greater than both the Roll-Up Value
($67,005) and the amount that would have been payable under the basic Death
Benefit ($75,000).

Example with withdrawals
Assume that the Owner made a withdrawal of $5,000 on the 6/th /anniversary of
the Issue Date when the Account Value was $45,000. The Roll-Up Value on the
6/th /anniversary of the Issue Date is equal to initial Purchase Payment
accumulated at 5% for 6 years, or $67,005. The 5% Dollar-for-Dollar Withdrawal
Limit for the 7/th /annuity year is equal to 5% of the Roll-Up Value as of the
6/th /anniversary of the Issue Date, or $3,350. Therefore, the remaining $1,650
of the withdrawal results in a proportional reduction to the Roll-Up Value. On
the 7/th /anniversary of the Issue Date we receive due proof of death, at which
time the Account Value is $43,000; however, the Anniversary Value on the 2/nd
/anniversary of the Issue Date was $70,000. Assume as well that the Owner has
died before the Death Benefit Target Date. The Death Benefit is equal to the
greatest of the Roll-Up Value, Highest Anniversary Value or the basic Death
Benefit.

B-3




APPENDIX B

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix B -- Calculation of Optional Death Benefits continued



Roll-Up Value               ={(67,005 - $3,350) - [($67,005 - $3,350) X $1,650/($45,000 - $3,350)]} X 1.05
                            =($63,655 - $2,522) X 1.05
                            =$64,190
Highest Anniversary Value   =$70,000 - [$70,000 X $5,000/$45,000]
                            =$70,000 - $7,778
                            =$62,222
Basic Death Benefit         =max [$43,000, $50,000 - ($50,000 X $5,000/$45,000)]
                            =max [$43,000, $44,444]
                            =$44,444

The Death Benefit therefore is $64,190.

Example with death after Death Benefit Target Date
Assume that the Owner has not made any withdrawals prior to the Death Benefit
Target Date. Further assume that the Owner dies after the Death Benefit Target
Date, when the Account Value is $75,000. The Roll-Up Value on the Death Benefit
Target Date (the contract anniversary on or following the Owner's 80/th
/birthday) is equal to initial Purchase Payment accumulated at 5% for 10 years,
or $81,445. The Highest Anniversary Value on the Death Benefit Target Date was
$85,000; however, following the Death Benefit Target Date, the Owner made a
Purchase Payment of $15,000 and later had taken a withdrawal of $5,000 when the
Account Value was $70,000. The Death Benefit is equal to the greatest of the
Roll-Up Value, Highest Anniversary Value or the basic Death Benefit as of the
Death Benefit Target Date; each increased by subsequent purchase payments and
reduced proportionally for subsequent withdrawals.

Roll-Up Value               =$81,445 + $15,000 - [($81,445 + 15,000) X $5,000/$70,000]
                            =$81,445 + $15,000 - $6,889
                            =$89,556
Highest Anniversary Value   =$85,000 + $15,000 - [($85,000 + 15,000) X $5,000/$70,000]
                            =$85,000 + $15,000 - $7,143
                            =$92,857
Basic Death Benefit         =max [$75,000, $50,000 + $15,000 - {(50,000 + $15,000) X $5,000/$70,000}]
                            =max [$75,000, $60,357]
                            =$75,000

The Death Benefit therefore is $92,857.

EXAMPLES OF HIGHEST DAILY VALUE DEATH BENEFIT CALCULATION
The following are examples of how the HDV Death Benefit is calculated. Each
example assumes an initial Purchase Payment of $50,000. Each example assumes
that there is one Owner who is age 70 on the Issue Date.

Example with market increase and death before Death Benefit Target Date
Assume that the Owner's Account Value has generally been increasing due to
positive market performance and that no withdrawals have been made. On the date
we receive due proof of death, the Account Value is $75,000; however, the
Highest Daily Value was $90,000. Assume as well that the Owner has died before
the Death Benefit Target Date. The Death Benefit is equal to the greater of the
Highest Daily Value or the basic Death Benefit. The Death Benefit would be the
HDV ($90,000) because it is greater than the amount that would have been
payable under the basic Death Benefit ($75,000).


                                      B-4




APPENDIX B

AMERICAN SKANDIA ANNUITIES PROSPECTUS




Example with withdrawals
Assume that the Account Value has been increasing due to positive market
performance and the Owner made a withdrawal of $15,000 in Annuity Year 7 when
the Account Value was $75,000. On the date we receive due proof of death, the
Account Value is $80,000; however, the Highest Daily Value ($90,000) was
attained during the fifth Annuity Year. Assume as well that the Owner has died
before the Death Benefit Target Date. The Death Benefit is equal to the greater
of the Highest Daily Value (proportionally reduced by the subsequent
withdrawal) or the basic Death Benefit.

  Highest Daily Value   =$90,000 - [$90,000 X $15,000/$75,000]
                        =$90,000 - $18,000
                        =$72,000
  Basic Death Benefit   =max [$80,000, $50,000 - ($50,000 X $15,000/$75,000)]
                        =max [$80,000, $40,000]
                        =$80,000

The Death Benefit therefore is $80,000.

Example with death after Death Benefit Target Date
Assume that the Owner's Account Value has generally been increasing due to
positive market performance and that no withdrawals had been made prior to the
Death Benefit Target Date. Further assume that the Owner dies after the Death
Benefit Target Date, when the Account Value is $75,000. The Highest Daily Value
on the Death Benefit Target Date was $80,000; however, following the Death
Benefit Target Date, the Owner made a Purchase Payment of $15,000 and later had
taken a withdrawal of $5,000 when the Account Value was $70,000. The Death
Benefit is equal to the greater of the Highest Daily Value on the Death Benefit
Target Date plus Purchase Payments minus proportional withdrawals after the
Death Benefit Target Date or the basic Death Benefit.

Highest Daily Value   =$80,000 + $15,000 - [($80,000 + $15,000) X $5,000/$70,000]
                      =$80,000 + $15,000 - $6,786
                      =$88,214
Basic Death Benefit   =max [$75,000, ($50,000 + $15,000) - {($50,000 + $15,000) X $5,000/$70,000}]
                      =max [$75,000, $60,357]
                      =$75,000

The Death Benefit therefore is $88,214.


                                      B-5




APPENDIX C

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix C -- Plus40(TM) Optional Life Insurance Rider

 American Skandia's Plus40/(TM) /Optional Life Insurance Rider was offered, in
 those states where approved, between November 18, 2002 for ASAP III,
 January 17, 2002 for ASL II and APEX II, and January 23, 2002 for XT6 and
 May 1, 2003. The description below of the Plus40/(TM) /benefit applies to
 those Contract Owners who purchased an Annuity during that time period and
 elected the Plus40/(TM) /benefit.

 The life insurance coverage provided under the Plus40/(TM) /Optional Life
 Insurance Rider ("Plus40/(TM) /rider" or the "Rider") is supported by American
 Skandia's general account and is not subject to, or registered as a security
 under, either the Securities Act of 1933 or the Investment Company Act of
 1940. Information about the Plus40/(TM) /rider is included as an Appendix to
 this Prospectus to help you understand the Rider and the relationship between
 the Rider and the value of your Annuity. It is also included because you can
 elect to pay for the Rider with taxable withdrawals from your Annuity. The
 staff of the Securities and Exchange Commission has not reviewed this
 information. However, the information may be subject to certain generally
 applicable provisions of the Federal securities laws regarding accuracy and
 completeness.

   The income tax-free life insurance payable to your Beneficiary(ies) under
the Plus40/(TM) /rider is equal to 40% of the Account Value of your Annuity as
of the date we receive due proof of death, subject to certain adjustments,
restrictions and limitations described below.

ELIGIBILITY
The Plus40/(TM) /rider may be purchased as a rider on your Annuity. The Rider
must cover those persons upon whose death the Annuity's death benefit becomes
payable -- the Annuity's owner or owners, or the Annuitant (in the case of an
entity owned Annuity). If the Annuity has two Owners, the Rider's death benefit
is payable upon the first death of such persons. If the Annuity is owned by an
entity, the Rider's death benefit is payable upon the death of the Annuitant,
even if a Contingent Annuitant is named.
   The minimum allowable age to purchase the Plus40/(TM) /rider is 40; the
maximum allowable age is 75. If the Rider is purchased on two lives, both
persons must meet the age eligibility requirements. The Plus40/(TM) /rider is
not available to purchasers who use their Annuity as a funding vehicle for a
Tax Sheltered Annuity (or 403(b)) or as a funding vehicle for a qualified plan
under Section 401 of the Internal Revenue Code ("Code").

ADJUSTMENTS, RESTRICTIONS & LIMITATIONS
 .   If you die during the first 24 months following the effective date of the
     Plus40/(TM)/ rider (generally, the Issue Date of your Annuity), the death
     benefit will be limited to the amount of any charges paid for the Rider
     while it was in effect. While we will return the charges you have paid
     during the applicable period as the death benefit, your Beneficiary(ies)
     will receive no additional life insurance benefit from the Plus40/(TM)
     /rider if you die within 24 months of its effective date.
 .   If you make a Purchase Payment within 24 months prior to the date of
     death, the Account Value used to determine the amount of the death benefit
     will be reduced by the amount of such Purchase Payment(s). If we reduce
     the death benefit payable under the Plus40/(TM) /rider based on this
     provision, we will return 50% of any charges paid for the Rider based on
     those Purchase Payments as an additional amount included in the death
     benefit under the Rider.
 .   If we apply Credits to your Annuity based on Purchase Payments, such
     Credits are treated as Account Value for purposes of determining the death
     benefit payable under the Plus40/(TM) /rider. However, if Credits were
     applied to Purchase Payments made within 24 months prior to the date of
     death, the Account Value used to determine the amount of the death benefit
     will be reduced by the amount of such Credits. If we reduce the death
     benefit payable under the Plus40/(TM) /rider based on this provision, we
     will return 50% of any charges paid for the Rider based on such Credits as
     an additional amount included in the death benefit under the Rider.
 .   If you become terminally ill (as defined in the Rider) and elect to
     receive a portion of the Plus40/(TM)/ rider's death benefit under the
     Accelerated Death Benefit provision, the amount that will be payable under
     the Rider upon your death will be reduced. Please refer to the Accelerated
     Death Benefit provision described below.


                                      C-1




APPENDIX C

AMERICAN SKANDIA ANNUITIES PROSPECTUS



 .   If charges for the Plus40/(TM)/ rider are due and are unpaid as of the
     date the death benefit is being determined, such charges will be deducted
     from the amount paid to your Beneficiary(ies).
 .   If the age of any person covered under the Plus40/(TM)/ rider is
     misstated, we will adjust any coverage under the Rider to conform to the
     facts. For example, if, due to the misstatement, we overcharged you for
     coverage under the Rider, we will add any additional charges paid to the
     amount payable to your Beneficiary(ies). If, due to the misstatement, we
     undercharged you for coverage under the Rider, we will reduce the death
     benefit in proportion to the charges not paid as compared to the charges
     that would have been paid had there been no misstatement.
 .   On or after an Owner reaches the expiry date of the Rider (the anniversary
     of the Annuity's Issue Date on or immediately after the 95/th /birthday),
     coverage will terminate. No charge will be made for an Owner following the
     expiry date. If there are two Owners, the expiry date applies separately
     to each Owner; therefore, coverage may continue for one Owner and
     terminate as to the other Owner.

MAXIMUM BENEFIT
The Plus40/(TM) /rider is subject to a Maximum Death Benefit Amount based on
the Purchase Payments applied to your Annuity. The Plus40/(TM) /rider may also
be subject to a Per Life Maximum Benefit that is based on all amounts paid
under any annuity contract we issue to you under which you have elected the
Plus40/(TM) /rider or similar life insurance coverage.
 .   The Maximum Death Benefit Amount is 100% of the Purchase Payments
     increasing at 5% per year following the date each Purchase Payment is
     applied to the Annuity until the date of death. If Purchase Payments are
     applied to the Annuity within 24 months prior to the date of death, the
     Maximum Death Benefit Amount is decreased by the amount of such Purchase
     Payments.
 .   The Per Life Maximum Benefit applies to Purchase Payments applied to any
     such annuity contracts more than 24 months from the date of death that
     exceed $1,000,000. If you make Purchase Payments in excess of $1,000,000,
     we will reduce the aggregate death benefit payable under all Plus40/(TM)
     /riders, or similar riders issued by us, based on the combined amount of
     Purchase Payments in excess of $1,000,000 multiplied by 40%. If the Per
     Life Maximum Benefit applies, we will reduce the amount payable under each
     applicable Plus40/(TM) /rider on a pro-rata basis. If the Per Life Maximum
     Benefit applies upon your death, we will return any excess charges that
     you paid on the portion of your Account Value on which no benefit is
     payable. The Per Life Maximum Benefit does not limit the amount of
     Purchase Payments that you may apply to your Annuity.

ACCELERATED DEATH BENEFIT PROVISION
If you become terminally ill, you may request that a portion of the death
benefit payable under the Plus40/(TM) /rider be prepaid instead of being paid
to your Beneficiary(ies) upon your death. Subject to our requirements and where
allowed by law, we will make a one time, lump sum payment. Our requirements
include proof satisfactory to us, in writing, of terminal illness after the
Rider's Effective Date.
   The maximum we will pay, before any reduction, is the lesser of 50% of the
Rider's death benefit or $100,000. If you elect to accelerate payment of a
portion of the death benefit under the Plus40/(TM) /rider, the amount of the
remaining death benefit is reduced by the prepaid amount accumulating at an
annualized interest rate of 6.0%. Eligibility for an accelerated payout of a
portion of your Plus40/(TM) /rider death benefit may be more restrictive than
any medically-related surrender provision that may be applicable to you under
the Annuity.

CHARGES FOR THE PLUS40/(TM) /RIDER
The Plus40/(TM) /rider has a current charge and a guaranteed maximum charge.
The current charge for the Plus40/(TM) /rider is based on a percentage of your
Account Value as of the anniversary of the Issue Date of your Annuity. The
applicable percentages differ based on the attained age, last birthday of the
Owner(s) or Annuitant (in the case of an entity owned Annuity) as of the date
the charge is due. We reserve the right to change the current charge, at any
time, subject to regulatory approval where required. If there are two Owners,
we calculate the current charge that applies to each Owner individually and
deduct the combined amount as the charge for the Rider. There is no charge
based on a person's life after coverage expires as to that person. However, a
charge will still apply to the second of two Owners (and coverage will continue
for such Owner) if such Owner has not reached the expiry date.

                                      C-2




APPENDIX C

AMERICAN SKANDIA ANNUITIES PROSPECTUS


Appendix C -- Plus40(TM) Optional Life Insurance Rider continued

                                        PERCENTAGE OF
                           ATTAINED AGE ACCOUNT VALUE
                            Age 40-75        .80%
                            Age 76-80       1.60%
                            Age 81-85       3.20%
                            Age 86-90       4.80%
                            Age 91          6.50%
                            Age 92          7.50%
                            Age 93          8.50%
                            Age 94          9.50%
                            Age 95         10.50%

   The charge for the Plus40/(TM) /rider may also be subject to a guaranteed
maximum charge that will apply if the current charge, when applied to the
Account Value, exceeds the guaranteed maximum charge. The guaranteed maximum
charge is based on a charge per $1,000 of insurance.
   We determine the charge for the Rider annually, in arrears. We deduct the
charge: (1) upon your death; (2) on each anniversary of the Issue Date; (3) on
the date that you begin receiving annuity payments; (4) if you surrender your
Annuity other than a medically-related surrender; or (5) if you choose to
terminate the Rider. If the Rider terminates for any of the preceding reasons
on a date other than the anniversary of the Annuity's Issue Date, the charge
will be prorated. During the first year after the Annuity's Issue Date, the
charge will be prorated from the Issue Date. In all subsequent years, the
charge will be prorated from the last anniversary of the Issue Date.
   You can elect to pay the annual charge through a redemption from your
Annuity's Account Value or through funds other than those within the Annuity.
If you do not elect a method of payment, we will automatically deduct the
annual charge from your Annuity's Account Value. The manner in which you elect
to pay for the Rider may have tax implications.
 .   If you elect to pay the charge through a redemption of your Annuity's
     Account Value, the withdrawal will be treated as a taxable distribution,
     and will generally be subject to ordinary income tax on the amount of any
     investment gain withdrawn. If you are under age 59 1/2, the distribution
     may also be subject to a 10% penalty on any gain withdrawn, in addition to
     ordinary income taxes. We first deduct the amount of the charge pro-rata
     from the Account Value in the variable investment options. We only deduct
     the charge pro-rata from the Fixed Allocations to the extent there is
     insufficient Account Value in the variable investment options to pay the
     charge.
 .   If you elect to pay the charge through funds other than those from your
     Annuity, we require that payment be made electronically in U.S. currency
     through a U.S. financial institution. If you elect to pay the charge
     through electronic transfer of funds and payment has not been received
     within 31 days from the due date, we will deduct the charge as a
     redemption from your Annuity, as described above.

TERMINATION
You can terminate the Plus40/(TM) /rider at any time. Upon termination, you
will be required to pay a pro-rata portion of the annual charge for the Rider.
The Plus40/(TM) /rider will terminate automatically on the date your Account
Value is applied to begin receiving annuity payments, on the date you surrender
the Annuity or, on the expiry date with respect to such person who reaches the
expiry date. We may also terminate the Plus40/(TM) /rider, if necessary, to
comply with our interpretation of the Code and applicable regulations. Once
terminated, you may not reinstate your coverage under the Plus40/(TM) /rider.

CHANGES IN ANNUITY DESIGNATIONS
Changes in ownership and annuitant designations under the Annuity may result in
changes in eligibility and charges under the Plus40/(TM) /rider. These changes
may include termination of the Rider. Please refer to the Rider for specific
details.

                                      C-3




APPENDIX C

AMERICAN SKANDIA ANNUITIES PROSPECTUS




SPOUSAL ASSUMPTION
A spousal beneficiary may elect to assume ownership of the Annuity instead of
taking the Annuity's Death Benefit. However, regardless of whether a spousal
beneficiary assumes ownership of the Annuity, the death benefit under the
Plus40/(TM) /rider will be paid despite the fact that the Annuity will
continue. The spousal beneficiary can apply the death benefit proceeds under
the Plus40/(TM) /rider to the Annuity as a new Purchase Payment, can purchase a
new annuity contract or use the death benefit proceeds for any other purpose.
Certain restrictions may apply to an Annuity that is used as a qualified
investment. Spousal beneficiaries may also be eligible to purchase the
Plus40/(TM) /rider, in which case the Annuity's Account Value, as of the date
the assumption is effective, will be treated as the initial Purchase Payment
under applicable provisions of the Rider.

TAX CONSIDERATION
The Plus40/(TM) /rider was designed to qualify as a life insurance contract
under the Code. As life insurance, under most circumstances, the
Beneficiary(ies) does not pay any Federal income tax on the death benefit
payable under the Rider.
   If your Annuity is being used as an Individual Retirement Annuity (IRA), we
consider the Plus40/(TM) /rider to be outside of your IRA, since premium for
the Rider is paid for either with funds outside of your Annuity or with
withdrawals previously subject to tax and any applicable tax penalty.
   We believe payments under the accelerated payout provision of the Rider will
meet the requirements of the Code and the regulations in order to qualify as
tax-free payments. To the extent permitted by law, we will change our
procedures in relation to the Rider, or the definition of terminally ill, or
any other applicable term in order to maintain the tax-free status of any
amounts paid out under the accelerated payout provision.

                                      C-4




APPENDIX D

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix D -- Additional Information on Asset Allocation Programs


Program Rules
. Prior to December 5, 2005, you could elect an asset allocation program where
  the Sub-accounts for each asset class in each model portfolio were designated
  based on an evaluation of available Sub-accounts. Effective December 5, 2005,
  you can no longer enroll in an asset allocation program, but you will be
  permitted to remain in the program if you enrolled prior to the date. These
  Program Rules reflect how the asset allocation program will be administered
  as of December 5, 2005 for those Owners who have chosen to remain in their
  program. Asset allocation is a sophisticated method of diversification that
  allocates assets among asset classes in order to manage investment risk and
  potentially enhance returns over the long term. However, asset allocation
  does not guarantee a profit or protect against a loss.

How the Asset Allocation Program Works
. Amounts will automatically be allocated in accordance with the percentages
  and to Sub-accounts indicated for the model portfolio that you previously
  chose. If you allocate your Account Value or transfer your Account Value
  among any Sub-accounts that are outside of your model portfolio, we will
  allocate these amounts according to the allocation percentages of the
  applicable model portfolio upon the next rebalancing. You will not be
  permitted to change from one model portfolio to another. Upon each rebalance,
  100% of your Account Value allocated to the variable Sub-accounts will be
  allocated to the asset allocation program. Any Account Value not invested in
  the Sub-accounts will not be part of the program.

. Additional Purchase Payments: Unless otherwise requested, any additional
  Purchase Payments applied to the variable Sub-accounts in the Annuity will be
  allocated to the Sub-accounts according to the allocation percentages for the
  model portfolio you chose. Allocation of additional Purchase Payments outside
  of your model portfolio but into a Sub-account, will be reallocated according
  to the allocation percentages of the applicable model portfolio upon the next
  rebalancing.

. Rebalancing Your Model Portfolio: Changes in the value of the Sub-account
  will cause your Account Value allocated to the Sub-accounts to vary from the
  percentage allocations of the model portfolio you select. By selecting the
  asset allocation program, you have directed us to periodically (e.g.,
  quarterly) rebalance your Account Value allocated to the Sub-accounts in
  accordance with the percentage allocations assigned to each Sub-account
  within your model portfolio at the time you elected the program or had later
  been modified with your consent. Some asset allocation programs will only
  require that a rebalancing occur when the percent of your Account Value
  allocated to the Sub-accounts are outside of the acceptable range permitted
  under such asset allocation program. Note -- Any Account Value not invested
  in the Sub-accounts will not be affected by any rebalance.

. Sub-account Changes Within the Model Portfolios: From time to time you may be
  notified of a change in a Sub-account within your model portfolio. If you
  consent (in the manner that is then permitted or required) to the change,
  then it will be implemented upon the next rebalance. If you do not consent
  then rebalancing will continue in accordance with your unchanged model
  portfolio, unless the Sub-account is no longer available under your Annuity,
  in which case your lack of consent will be deemed a request to terminate the
  asset allocation program and the provisions under "Termination or
  Modification of the Asset Allocation Program" will apply.

. Owner Changes in Choice of Model Portfolio: You may not change from the model
  portfolio that you have elected to any other model portfolio.

Termination or Modification of the Asset Allocation Program:
. You may request to terminate your asset allocation program at any time. Once
  you terminate your asset allocation program, you will not be permitted to
  re-enroll in the program. Any termination will be effective on the date that
  American Skandia receives your termination request in good order. If you are
  enrolled in HDV or LT5, termination of your asset allocation program must
  coincide with (i) the enrollment in a then currently available and approved
  asset allocation program or other approved option, or (ii) the allocation of
  your entire account value to the then required investment option(s) available
  with these benefits. However, if you are enrolled in LT5 you may terminate
  the LT5 benefit in order to then terminate your asset allocation program.
  American Skandia reserves the right to terminate or modify the asset
  allocation program at any time with respect to any programs.

Restrictions on Electing the Asset Allocation:
. You cannot participate in auto-rebalancing or a DCA program while enrolled in
  an asset allocation program and Systematic Withdrawals can only be made as
  flat dollar amounts.


                                      D-1




APPENDIX E

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix E -- Description and Calculation of Previously Offered Optional Death
Benefits (this applies solely to APEX II, ASL II, and XT6)

If you purchased your Annuity before November 18, 2002 and were not a resident
of the State of New York, the following optional death benefits were offered:

ENHANCED BENEFICIARY PROTECTION OPTIONAL DEATH BENEFIT
The Enhanced Beneficiary Protection Optional Death Benefit can provide
additional amounts to your Beneficiary that may be used to offset federal and
state taxes payable on any taxable gains in your Annuity at the time of your
death. Whether this benefit is appropriate for you may depend on your
particular circumstances, including other financial resources that may be
available to your Beneficiary to pay taxes on your Annuity should you die
during the accumulation period. No benefit is payable if death occurs on or
after the Annuity Date.
   The Enhanced Beneficiary Protection Optional Death Benefit provides a
benefit that is payable in addition to the basic Death Benefit. If the Annuity
has one Owner, the Owner must be age 75 or less at the time the benefit is
purchased. If the Annuity has joint Owners, the oldest Owner must be age 75 or
less. If the Annuity is owned by an entity, the Annuitant must be age 75 or
less.

CALCULATION OF ENHANCED BENEFICIARY PROTECTION OPTIONAL DEATH BENEFIT
If you purchase the Enhanced Beneficiary Protection Optional Death Benefit, the
Death Benefit is calculated as follows:
1. the basic Death Benefit described above
   PLUS
2. 50% of the "Death Benefit Amount" less Purchase Payments reduced by
   proportional withdrawals.

   "Death Benefit Amount" includes your Account Value and any amounts added to
your Account Value under the Annuity's basic Death Benefit when the Death
Benefit is calculated. Under the basic Death Benefit, amounts are added to your
Account Value when the Account Value is less than Purchase Payments minus
proportional withdrawals.
   "Proportional withdrawals" are determined by calculating the percentage of
your Account Value that each prior withdrawal represented when withdrawn.
   The amount calculated in Items 1 & 2 above may be reduced by any Credits
   under certain circumstances.

 The Enhanced Beneficiary Protection Optional Death Benefit is subject to a
 maximum of 50% of all Purchase Payments applied to the Annuity at least 12
 months prior to the death of the decedent that triggers the payment of the
 Death Benefit.

 Please refer to the section entitled "Tax Considerations" for a discussion of
 special tax considerations for purchasers of this benefit.

 NOTE: You may not elect the Enhanced Beneficiary Protection Optional Death
 Benefit if you have elected any other Optional Death Benefit.

Guaranteed Minimum Death Benefit
If the Annuity has one Owner, the Owner must be age 80 or less at the time the
optional Death Benefit is purchased. If the Annuity has joint Owners, the
oldest Owner must be age 80 or less. If the Annuity is owned by an entity, the
Annuitant must be age 80 or less.

KEY TERMS USED WITH THE GUARANTEED MINIMUM DEATH BENEFIT
.   The Death Benefit Target Date is the contract anniversary on or after the
    80/th/ birthday of the current Owner, the oldest of either joint Owner or
    the Annuitant, if entity owned.
.   The Highest Anniversary Value equals the highest of all previous
    "Anniversary Values" on or before the earlier of the Owner's date of death
    and the "Death Benefit Target Date".


                                      E-1




APPENDIX E

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix E -- Description and Calculation of Previously Offered Optional Death
Benefits (this applies solely to APEX II, ASL II, and XT6) continued

.   The Anniversary Value is the Account Value as of each anniversary of the
    Issue Date plus the sum of all Purchase Payments on or after such
    anniversary less the sum of all "Proportional Reductions" since such
    anniversary.
.   A Proportional Reduction is a reduction to the value being measured caused
    by a withdrawal, equaling the percentage of the withdrawal as compared to
    the Account Value as of the date of the withdrawal. For example, if your
    Account Value is $10,000 and you withdraw $2,000 (a 20% reduction), we will
    reduce both your Anniversary Value and the amount determined by Purchase
    Payments increasing at the appropriate interest rate by 20%.

CALCULATION OF GUARANTEED MINIMUM DEATH BENEFIT
The Guaranteed Minimum Death Benefit depends on whether death occurs before or
after the Death Benefit Target Date.

If the Owner dies before the Death Benefit Target Date, the Death Benefit
equals the greatest of:
1. the Account Value in the Sub-accounts plus the Interim Value of any Fixed
   Allocations (no MVA) as of the date we receive in writing "due proof of
   death"; and
2. the sum of all Purchase Payments minus the sum of all Proportional
   Reductions, each increasing daily until the Owner's date of death at a rate
   of 5.0%, subject to a limit of 200% of the difference between the sum of all
   Purchase Payments and the sum of all withdrawals as of the Owner's date of
   death; and
3. the "Highest Anniversary Value" on or immediately preceding the Owner's date
   of death.

The amount determined by this calculation is increased by any Purchase Payments
received after the Owner's date of death and decreased by any Proportional
Reductions since such date. The amount calculated in Items 1 & 3 above may be
reduced by any Credits under certain circumstances.

If the Owner dies on or after the Death Benefit Target Date, the Death Benefit
equals the greater of:
1. the Account Value as of the date we receive in writing "due proof of death"
   (an MVA may be applicable to amounts in any Fixed Allocations); and
2. the greater of Item 2 & 3 above on the Death Benefit Target Date plus the
   sum of all Purchase Payments less the sum of all Proportional Reductions
   since the Death Benefit Target Date.

The amount calculated in Item 1 above may be reduced by any Credits under
certain circumstances.

ANNUITIES WITH JOINT OWNERS
For Annuities with Joint Owners, the Death Benefit is calculated as shown above
except that the age of the oldest of the Joint Owners is used to determine the
Death Benefit Target Date. NOTE: If you and your spouse own the Annuity
jointly, we will pay the Death Benefit to the Beneficiary. If the sole primary
Beneficiary is the surviving spouse, then the surviving spouse can elect to
assume ownership of the Annuity and continue the contract instead of receiving
the Death Benefit.

ANNUITIES OWNED BY ENTITIES
For Annuities owned by an entity, the Death Benefit is calculated as shown
above except that the age of the Annuitant is used to determine the Death
Benefit Target Date. Payment of the Death Benefit is based on the death of the
Annuitant (or Contingent Annuitant, if applicable).

CAN I TERMINATE THE OPTIONAL DEATH BENEFITS? DO THE OPTIONAL DEATH BENEFITS
TERMINATE UNDER OTHER CIRCUMSTANCES?
You can terminate the Enhanced Beneficiary Protection Optional Death Benefit
and the Guaranteed Minimum Death Benefit at any time. Upon termination, you
will be required to pay a pro-rata portion of the annual charge for the
benefit. Both optional Death Benefits will terminate automatically on the
Annuity Date. We may also terminate any optional Death Benefit if necessary to
comply with our interpretation of the Code and applicable regulations.


                                      E-2




APPENDIX E

AMERICAN SKANDIA ANNUITIES PROSPECTUS



WHAT ARE THE CHARGES FOR THE OPTIONAL DEATH BENEFITS?
We deduct a charge from your Account Value if you elect to purchase either
optional Death Benefit. The Enhanced Beneficiary Protection Death Benefit costs
0.25% of Account Value. The Guaranteed Minimum Death Benefit costs 0.30% of the
current Death Benefit. The charges for these death benefits are deducted in
arrears each Annuity Year. No charge applies after the Annuity Date. We deduct
the charge:
1. on each anniversary of the Issue Date;
2. when Account Value is transferred to our general account prior to the
   Annuity Date;
3. if you surrender your Annuity; and
4. if you choose to terminate the benefit (Enhanced Beneficiary Protection
   Optional Death Benefit only)

   If you surrender the Annuity, elect to begin receiving annuity payments or
terminate the benefit on a date other than an anniversary of the Issue Date,
the charge will be prorated. During the first year after the Issue Date, the
charge will be prorated from the Issue Date. In all subsequent years, it would
be prorated from the last anniversary of the Issue Date.
   We first deduct the amount of the charge pro-rata from the Account Value in
the variable investment options. We only deduct the charge pro-rata from the
Fixed Allocations to the extent there is insufficient Account Value in the
variable investment options to pay the charge. If your Annuity's Account Value
is insufficient to pay the charge, we may deduct your remaining Account Value
and terminate your Annuity. We will notify you if your Account Value is
insufficient to pay the charge and allow you to submit an additional Purchase
Payment to continue your Annuity.
   Please refer to the section entitled "Tax Considerations" for additional
considerations in relation to the optional Death Benefit.

ADDITIONAL CALCULATIONS

EXAMPLES OF ENHANCED BENEFICIARY PROTECTION OPTIONAL DEATH BENEFIT CALCULATION
The following are examples of how the Enhanced Beneficiary Protection Optional
Death Benefit is calculated. Each example assumes that a $50,000 initial
Purchase Payment is made and that no withdrawals are made prior to the Owner's
death. Each example assumes that there is one Owner who is age 50 on the Issue
Date and that all Account Value is maintained in the variable investment
options.
   NOTE: The examples below do not include Credits which may be recovered by
   American Skandia under certain circumstances.

Example with market increase
Assume that the Owner's Account Value has been increasing due to positive
market performance. On the date we receive due proof of death, the Account
Value is $75,000. The basic Death Benefit is calculated as Purchase Payments
minus proportional withdrawals, or Account Value less the amount of any Credits
applied within 12-months prior to the date of death, whichever is greater.
Therefore, the basic Death Benefit is equal to $75,000. The Enhanced
Beneficiary Protection Optional Death Benefit is equal to the amount payable
under the basic Death Benefit ($75,000) PLUS 50% of the "Death Benefit Amount"
less Purchase Payments reduced by proportional withdrawals.

             Purchase Payments              =           $50,000
             Account Value                  =           $75,000
             Basic Death Benefit            =           $75,000
             Death Benefit Amount           =           $75,000- $50,000 = $25,000
             Amount Payable Under Enhanced Beneficiary Protection Optional Death Benefit
                                            =$75,000 + $12,500 = $87,500

EXAMPLES WITH MARKET DECLINE
Assume that the Owner's Account Value has been decreasing due to declines in
market performance. On the date we receive due proof of death, the Account
Value is $45,000. The basic Death Benefit is calculated as Purchase Payments
minus proportional withdrawals, or Account Value less the amount of any Credits
applied within 12-months prior to the date of death, whichever is greater.
Therefore, the basic Death Benefit is equal to $50,000. The Enhanced
Beneficiary Protection Optional Death Benefit is equal to the amount payable
under the basic Death Benefit ($50,000) PLUS 50% of the "Death Benefit Amount"
less Purchase Payments reduced by proportional withdrawals.


                                      E-3

APPENDIX E

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix E -- Description and Calculation of Previously Offered Optional Death
Benefits (this applies solely to APEX II, ASL II, and XT6) continued

Purchase Payments =$50,000
Account Value =$40,000
Basic Death Benefit =$50,000
Death Benefit Amount =$50,000 - $50,000 = $0
Amount Payable Under Enhanced Beneficiary Protection Optional Death Benefit
=$50,000 + $0 = $50,000

In this example you would receive no additional benefit from purchasing the
Enhanced Beneficiary Protection Optional Death Benefit.

EXAMPLES OF GUARANTEED MINIMUM DEATH BENEFIT CALCULATION
The following are examples of how the Guaranteed Minimum Death Benefit is
calculated. Each example assumes that a $50,000 initial Purchase Payment is
made and that no withdrawals are made prior to the Owner's death. Each example
assumes that there is one Owner who is age 50 on the Issue Date and that all
Account Value is maintained in the variable investment options.
NOTE: The examples below do not include Credits which may be recovered by
American Skandia under certain circumstances.

Example of market increase
Assume that the Owner's Account Value has generally been increasing due to
positive market performance. On the date we receive due proof of death, the
Account Value is $90,000. The Highest Anniversary Value at the end of any
previous period is $72,000. The Death Benefit would be the Account Value
($90,000) because it is greater than the Highest Anniversary Value ($72,000) or
the sum of prior Purchase Payments increased by 5.0% annually ($73,872.77).

Example of market decrease
Assume that the Owner's Account Value generally increased until the fifth
anniversary but generally has been decreasing since the fifth contract
anniversary. On the date we receive due proof of death, the Account Value is
$48,000. The Highest Anniversary Value at the end of any previous period is
$54,000. The Death Benefit would be the sum of prior Purchase Payments
increased by 5.0% annually ($73,872.77) because it is greater than the Highest
Anniversary Value ($54,000) or the Account Value ($48,000).

Example of market increase followed by decrease
Assume that the Owner's Account Value increased significantly during the first
six years following the Issue Date. On the sixth anniversary date the Account
Value is $90,000. During the seventh Annuity Year, the Account Value increases
to as high as $100,000 but then subsequently falls to $80,000 on the date we
receive due proof of death. The Death Benefit would be the Highest Anniversary
Value at the end of any previous period ($90,000), which occurred on the sixth
anniversary, although the Account Value was higher during the subsequent
period. The Account Value on the date we receive due proof of death ($80,000)
is lower, as is the sum of all prior Purchase Payments increased by 5.0%
annually ($73,872.77).

E-4




APPENDIX F

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix F -- Selecting the Variable Annuity That's Right for You

<R>
American Skandia Life Assurance Corporation offers several deferred variable
annuity products. Each annuity has different features and benefits that may be
appropriate for you based on your individual financial situation and how you
intend to use the annuity. Not all of these annuities may be available to you,
depending on your state of residence and/or the broker-dealer through which
your annuity was sold. You can verify which of these annuities is available to
you by speaking to your Financial Professional or calling 1-800-752-6342.
</R>

The different features and benefits may include variations on your ability to
access funds in your annuity without the imposition of a withdrawal charge as
well as different ongoing fees and charges you pay to stay in the contract.
Additionally, differences may exist on various optional benefits such as
guaranteed living benefits or death benefit protection.

Among the factors you should consider when choosing which annuity product may
be most appropriate for your individual needs are the following:
.  Your age;
.  The amount of your investment and any planned future deposits into the
   annuity;
.  How long you intend to hold the annuity (also referred to as investment time
   horizon);
.  Your desire to make withdrawals from the annuity;
.  Your investment return objectives;
.  The effect of optional benefits that may be elected, and
.  Your desire to minimize costs and/or maximize return associated with the
   annuity.

<R>
The following chart outlines some of the different features for each actively
sold American Skandia Annuity. The availability of optional features, such as
those noted in the chart, may increase the cost of the contract. Therefore you
should carefully consider which features you plan to use when selecting your
annuity. You should also consider the investment objectives, risks, charges and
expenses of an investment carefully before investing.
</R>

In addition, the hypothetical illustrations below reflect the account value and
surrender value of each variable annuity over a variety of holding periods.
These charts are meant to reflect how your annuities can grow or decrease
depending on market conditions and the comparable value of each of the
annuities (which reflects the charges associated with the annuities) under the
assumptions noted.

<R>
Your registered Financial Professional can provide you with prospectuses for
one or more of these variable annuities noted in this document and can guide
you through Selecting the Variable Annuity That's Right for You.
</R>

AMERICAN SKANDIA ANNUITY PRODUCT COMPARISON
<R>
Below is a summary of American Skandia's actively sold annuity products. ASL II
refers to American Skandia Lifevest(R) II, APEX II refers to American Skandia
APEX(R) II, ASAP III refers to American Skandia Advisor Plan/SM/ III, and XTra
Credit SIX refers to American Skandia XTra Credit/SM/ SIX. You should consider
the investment objectives, risks, charges and expenses of an investment in any
Annuity carefully before investing. The prospectus for the Annuities as well as
the underlying portfolio prospectuses contain this and other information about
the variable annuities and underlying investment options. Your registered
Financial Professional can provide you with prospectuses for one or more of
these variable annuities and the underlying portfolios and can help you decide
upon the Annuity that would be most advantageous for you given your individual
needs. Please read the prospectuses carefully before investing.
</R>


                                      F-1




APPENDIX F

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix F -- Selecting the Variable Annuity That's Right for You continued



<R>
                               ASL II                 APEX II                  ASAP III              XTRA CREDIT SIX
-------------------------------------------------------------------------------------------------------------------------
Minimum Investment     $15,000                $10,000                  $1,000                   $10,000
-------------------------------------------------------------------------------------------------------------------------
Maximum Issue Age      No Maximum Age         85                       80                       75
-------------------------------------------------------------------------------------------------------------------------
Withdrawal Charge      None                   4 Years                  8 Years                  10 Years
Schedule                                      (8.5%, 8%, 7%, 6%)       (7.5%, 7%, 6.5%, 6%,     (9%, 9%, 8.5% ,8%,
                                                                       5%, 4%, 3%, 2%)          7%, 6%, 5%, 4%, 3%,
                                                                                                2%)
-------------------------------------------------------------------------------------------------------------------------
Insurance and          1.65%                  1.65%                    1.25% years 1-8;         1.65% years 1-10;
Distribution Charge                                                    0.65% years 9+           0.65% years 11+
-------------------------------------------------------------------------------------------------------------------------
Annual                 Lesser of $35 or       Lesser of $35 or         Lesser of $35 or         Lesser of $35 or
Maintenance Fee        2% of Account Value*   2% of Account Value*     2% of Account Value*     2% of Account Value
-------------------------------------------------------------------------------------------------------------------------
Contract Credit        No                     Yes. Effective for       Yes. Effective for       Yes. The amount of
                                              Contracts issued on or   Contracts issued on or   the credit applied to a
                                              after June 20, 2005,     after February 13,       purchase payment is
                                              subject to state         2006, subject to state   based on the year the
                                              availability. Generally, availability. Generally, purchase payment is
                                              we apply a Loyalty       we apply a Loyalty       received, for the first 6
                                              Credit to your           Credit to your           years of the contract
                                              Annuity's Account        Annuity's Account        as follows:
                                              Value at the end of      Value at the end of      For contracts issued
                                              your fifth contract year your fifth contract year on or after February
                                              (i.e., on your fifth     (i.e., on your fifth     13, 2006, subject to
                                              Contract Anniversary).   Contract Anniversary).   state availability, the
                                              The Loyalty Credit is    The Loyalty Credit is    credit percentages for
                                              equal to 2.75%           equal to 0.50% of        each year, starting
                                              (2.25% for contracts     total Purchase           with the first, are
                                              issued between June      Payments made            6.50%, 5.00%, 4.00%,
                                              20, 2005 and             during the first four    3.00%, 2.00%, and
                                              February 13, 2006) of    contract years less the  1.00%.
                                              total Purchase           cumulative amount of     Generally, for
                                              Payments made            withdrawals made         contracts issued prior
                                              during the first four    (including the           to February 13, 2006,
                                              contract years less the  deduction of any         the credit percentage
                                              cumulative amount of     CDSC amounts)            for the first year is
                                              withdrawals made         through the fifth        6.0%.
                                              (including the           Contract Anniversary
                                              deduction of any
                                              CDSC amounts)
                                              through the fifth
                                              Contract Anniversary
-------------------------------------------------------------------------------------------------------------------------
Fixed Allocation       Fixed Allocation       Fixed Allocation         Fixed Allocation         Fixed Allocation
(early withdrawals are Available (As of May   Available (As of May     Available (As of May     Available (As of May
subject to a Market    1, 2005 currently      1, 2005 currently        1, 2005 currently        1, 2005 currently
Value Adjustment)      offering durations of: offering durations of:   offering durations of:   offering durations of:
                       1,2,3,5,7,10 years)    1,2,3,5,7,10 years)      1,2,3,5,7,10 years)      1,2,3,5,7,10 years)
-------------------------------------------------------------------------------------------------------------------------
Variable Investment    All options available  All options available    All options available    All options available
Options
-------------------------------------------------------------------------------------------------------------------------
</R>


                                      F-2




APPENDIX F

AMERICAN SKANDIA ANNUITIES PROSPECTUS



<R>
                                ASL II                 APEX II                ASAP III             XTRA CREDIT SIX
----------------------------------------------------------------------------------------------------------------------
Basic Death Benefit     Prior to age 85: The   The greater of:         The greater of:         The greater of:
                        greater of: purchase   purchase payments       purchase payments       purchase payments
                        payments less          less proportional       less proportional       less proportional
                        proportional           withdrawals or          withdrawals or          withdrawals or
                        withdrawals or         account value (no       account value (no       account value (no
                        account value (no      MVA Applied).           MVA Applied).           MVA Applied) less an
                        MVA Applied).                                                          amount equal to the
                        On or after age 85:                                                    credits applied within
                        account value                                                          the 12 months prior to
                                                                                               date of death.
----------------------------------------------------------------------------------------------------------------------
Optional Death          Enhanced Beneficiary   EBP II,                 EBP II,                 EBP II,
Benefits (for an        Protection (EBPII)     HDV,                    HDV,                    HDV,
additional cost)/1/     Highest Daily Value    HAV,                    HAV,                    HAV,
                        (HDV)                  Combo 5% Roll-up /      Combo 5% Roll-up/       Combo 5% Roll-up /
                        Highest Anniversary    HAV                     HAV                     HAV
                        Value (HAV)
                        Combo 5% Roll Up/
                        HAV
----------------------------------------------------------------------------------------------------------------------
Living Benefits (for an GRO/ GRO Plus,         GRO/ GRO Plus,          GRO/ GRO Plus,          GRO/ GRO Plus,
additional cost)/2/     Guaranteed Minimum     GMWB,                   GMWB,                   GMWB,
                        Withdrawal Benefit     GMIB,                   GMIB,                   GMIB,
                        (GMWB),                Lifetime Five, Spousal  Lifetime Five, Spousal  Lifetime Five, Spousal
                        Guaranteed Minimum     Lifetime Five           Lifetime Five           Lifetime Five
                        Income Benefit
                        (GMIB),
                        Lifetime Five, Spousal
                        Lifetime Five
----------------------------------------------------------------------------------------------------------------------
Annuity Rewards/3/      Not Available          Available after initial Available after initial Available after initial
                                               withdrawal period       withdrawal period       withdrawal period
----------------------------------------------------------------------------------------------------------------------
</R>

HYPOTHETICAL ILLUSTRATION
<R>
The following examples outline the value of each annuity as well as the amount
that would be available to an investor as a result of full surrender at the end
of each of the Annuity years specified. The values shown below are based on the
following assumptions:

An initial investment of $100,000 is made into each Annuity earning a gross
rate of return of 0% and 6% respectively.
.  No subsequent deposits or withdrawals are made from the Annuity.
</R>
.  The hypothetical gross rates of return are reduced by the arithmetic average
   of the fees and expenses of the underlying portfolios and the charges that
   are deducted from the Annuity at the Separate Account level as follows/4:/
<R>
 .   1.44% based on the fees and expenses of the underlying portfolios as of
     December 31,2005. The arithmetic average of all fund expenses is computed
     by adding portfolio management fees, 12b-1 fees and other expenses of all
     of the underlying portfolios and then dividing by the number of
     portfolios. For purposes of the illustrations, we do not reflect any
     expense reimbursements or expense waivers that might apply and are
     described in the prospectus fee table.
</R>
 .   The Separate Account level charges include the Insurance Charge and
     Distribution Charge (as applicable).
.  The Annuity Value and Surrender Value are further reduced by the annual
   maintenance fee. For XTra Credit SIX, APEX II, and ASAP III, the Annuity
   Value and Surrender Value also reflect the addition of any applicable
   credits.


                                      F-3




APPENDIX F

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix F -- Selecting the Variable Annuity That's Right for You continued



<R>
The Contract Value assumes no surrender, while the Surrender Value assumes a
100% surrender two days prior to the anniversary of the Issue Date of the
Annuity ("Annuity Anniversary"), therefore reflecting the withdrawal charge
applicable to that Annuity year. Note that a withdrawal on the Annuity
Anniversary would be subject to the withdrawal charge applicable to the next
Annuity year, which usually is lower. The values that you actually experience
under an Annuity will be different than what is depicted here if any of the
assumptions we make here differ from your circumstances, however the relative
values for each Annuity reflected below will remain the same. (We will provide
you with a personalized illustration upon request). Shaded cells represent the
product with the highest customer Surrender Value for the contract year.
Multiple shaded cells represent a tie between two or more annuities.

0% GROSS RATE OF RETURN
</R>

<R>
         APEX II            ASAP III       XTRA CREDIT SIX         ASL II
-------------------------------------------------------------------------------
    CONTRACT SURRENDER CONTRACT SURRENDER CONTRACT SURRENDER CONTRACT SURRENDER
YR   VALUE     VALUE    VALUE     VALUE    VALUE     VALUE    VALUE     VALUE
-------------------------------------------------------------------------------
 1   96,942   88,442    97,335   88,835   103,243   94,743    96,942   96,942
-------------------------------------------------------------------------------
 2   93,936   85,936    94,700   87,700   100,044   91,044    93,936   93,936
-------------------------------------------------------------------------------
 3   91,021   84,021    92,136   85,636    96,942   88,442    91,021   91,021
-------------------------------------------------------------------------------
 4   88,197   82,197    89,640   83,640    93,936   85,936    88,197   88,197
-------------------------------------------------------------------------------
 5   85,458   85,458    87,211   82,211    91,022   84,022    85,458   85,458
-------------------------------------------------------------------------------
 6   85,470   85,470    85,333   81,333    88,197   82,197    82,804   82,804
-------------------------------------------------------------------------------
 7   82,815   82,815    83,019   80,019    85,458   80,458    80,231   80,231
-------------------------------------------------------------------------------
 8   80,242   80,242    80,767   78,767    82,804   78,804    77,737   77,737
-------------------------------------------------------------------------------
 9   77,748   77,748    79,051   79,051    80,231   77,231    75,320   75,320
-------------------------------------------------------------------------------
10   75,330   75,330    77,371   77,371    77,737   75,737    72,976   72,976
-------------------------------------------------------------------------------
11   72,986   72,986    75,727   75,727    76,083   76,083    70,705   70,705
-------------------------------------------------------------------------------
12   70,714   70,714    74,117   74,117    74,466   74,466    68,503   68,503
-------------------------------------------------------------------------------
13   68,512   68,512    72,541   72,541    72,882   72,882    66,368   66,368
-------------------------------------------------------------------------------
14   66,377   66,377    70,998   70,998    71,332   71,332    64,299   64,299
-------------------------------------------------------------------------------
15   64,308   64,308    69,486   69,486    69,813   69,813    62,294   62,294
-------------------------------------------------------------------------------
16   62,302   62,302    68,006   68,006    68,326   68,326    60,350   60,350
-------------------------------------------------------------------------------
17   60,358   60,358    66,557   66,557    66,871   66,871    58,465   58,465
-------------------------------------------------------------------------------
18   58,473   58,473    65,138   65,138    65,445   65,445    56,639   56,639
-------------------------------------------------------------------------------
19   56,647   56,647    63,748   63,748    64,049   64,049    54,868   54,868
-------------------------------------------------------------------------------
20   54,876   54,876    62,387   62,387    62,682   62,682    53,152   53,152
-------------------------------------------------------------------------------
21   53,159   53,159    61,055   61,055    61,344   61,344    51,488   51,488
-------------------------------------------------------------------------------
22   51,495   51,495    59,751   59,751    60,033   60,033    49,876   49,876
-------------------------------------------------------------------------------
23   49,882   49,882    58,473   58,473    58,750   58,750    48,312   48,312
-------------------------------------------------------------------------------
24   48,319   48,319    57,222   57,222    57,493   57,493    46,797   46,797
-------------------------------------------------------------------------------
25   46,803   46,803    55,997   55,997    56,263   56,263    45,328   45,328
-------------------------------------------------------------------------------
</R>
<R>
Assumptions:
a. $100,000 initial investment
b. Fund Expenses = 1.44%
c. No optional death benefits or living benefits elected
d. Annuity was issued on or after February 13, 2006
e. Surrender value assumes surrender 2 days before policy anniversary
</R>


                                      F-4




APPENDIX F

AMERICAN SKANDIA ANNUITIES PROSPECTUS




<R>
6% GROSS RATE OF RETURN
</R>

<R>
         APEX II            ASAP III       XTRA CREDIT SIX         ASL II
-------------------------------------------------------------------------------
    CONTRACT SURRENDER CONTRACT SURRENDER CONTRACT SURRENDER CONTRACT SURRENDER
YR   VALUE     VALUE    VALUE     VALUE    VALUE     VALUE    VALUE     VALUE
-------------------------------------------------------------------------------
 1  102,742    94,242  103,159    94,659  109,420   100,920  102,742   102,742
-------------------------------------------------------------------------------
 2  105,567    97,567  106,427    99,427  112,393   103,393  105,567   105,567
-------------------------------------------------------------------------------
 3  108,470   101,470  109,798   103,298  115,448   106,948  108,470   108,470
-------------------------------------------------------------------------------
 4  111,453   105,453  113,276   107,276  118,586   110,586  111,453   111,453
-------------------------------------------------------------------------------
 5  114,518   114,518  116,864   111,864  121,811   114,811  114,518   114,518
-------------------------------------------------------------------------------
 6  120,492   120,492  121,082   117,082  125,125   119,125  117,667   117,667
-------------------------------------------------------------------------------
 7  123,805   123,805  124,917   121,917  128,530   123,530  120,902   120,902
-------------------------------------------------------------------------------
 8  127,210   127,210  128,874   126,874  132,028   128,028  124,227   124,227
-------------------------------------------------------------------------------
 9  130,708   130,708  133,762   133,762  135,623   132,623  127,643   127,643
-------------------------------------------------------------------------------
10  134,302   134,302  138,838   138,838  139,316   137,316  131,153   131,153
-------------------------------------------------------------------------------
11  137,995   137,995  144,106   144,106  144,562   144,562  134,759   134,759
-------------------------------------------------------------------------------
12  141,789   141,789  149,574   149,574  150,011   150,011  138,465   138,465
-------------------------------------------------------------------------------
13  145,688   145,688  155,250   155,250  155,667   155,667  142,272   142,272
-------------------------------------------------------------------------------
14  149,694   149,694  161,141   161,141  161,537   161,537  146,184   146,184
-------------------------------------------------------------------------------
15  153,811   153,811  167,255   167,255  167,631   167,631  150,204   150,204
-------------------------------------------------------------------------------
16  158,040   158,040  173,602   173,602  173,955   173,955  154,334   154,334
-------------------------------------------------------------------------------
17  162,386   162,386  180,189   180,189  180,520   180,520  158,578   158,578
-------------------------------------------------------------------------------
18  166,851   166,851  187,027   187,027  187,333   187,333  162,939   162,939
-------------------------------------------------------------------------------
19  171,439   171,439  194,123   194,123  194,405   194,405  167,419   167,419
-------------------------------------------------------------------------------
20  176,153   176,153  201,489   201,489  201,746   201,746  172,023   172,023
-------------------------------------------------------------------------------
21  180,997   180,997  209,135   209,135  209,365   209,365  176,753   176,753
-------------------------------------------------------------------------------
22  185,974   185,974  217,071   217,071  217,273   217,273  181,613   181,613
-------------------------------------------------------------------------------
23  191,088   191,088  225,307   225,307  225,481   225,481  186,607   186,607
-------------------------------------------------------------------------------
24  196,343   196,343  233,857   233,857  234,000   234,000  191,739   191,739
-------------------------------------------------------------------------------
25  201,742   201,742  242,730   242,730  242,843   242,843  197,011   197,011
-------------------------------------------------------------------------------
</R>
<R>
Assumptions:
a. $100,000 initial investment
b. Fund Expenses = 1.44%
c. No optional death benefits or living benefits elected
d. Annuity was issued on or after February 13, 2006
e. Surrender value assumes surrender 2 days before policy anniversary
</R>


                                      F-5




APPENDIX F

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix F -- Selecting the Variable Annuity That's Right for You continued



In addition, the following charts indicate the days (measured from the Issue
Date) in which each annuity product would have the highest Surrender Value
amongst the products listed given the above assumptions.

0% GROSS RATE OF RETURN

<R>
                           OVER 30 YEARS, DAYS WON
                                        TOTAL DAYS  YEAR ACTUAL DAYS
           ---------------------------------------------------------
           APEX II                  1460               4       1460
                                                       5  1461-1825
                                                       6  1826-2190
                                                       7  2191-2555
                                                       8  2556-2919
           ---------------------------------------------------------
           ASAP III                  730               8       2920
                                                       9  2921-3285
                                                      10  3286-3649
           ---------------------------------------------------------
           Xtra Credit SIX          7301              10       3650
                                                   11-30 3651-10950
           ---------------------------------------------------------
           ASL II                   1825             1-5     1-1825
           ---------------------------------------------------------
</R>

<R>
</R>
6% GROSS RATE OF RETURN

<R>
                           OVER 30 YEARS, DAYS WON
                                        TOTAL DAYS  YEAR ACTUAL DAYS
           ---------------------------------------------------------
           APEX II                   729               6   1826-2190
                                                       7   2191-2554
           ---------------------------------------------------------
           ASAP III                 1425               9   2956-3285
                                                      10   3286-3649
                                                   28-30 10220-10950
           ---------------------------------------------------------
           Xtra Credit SIX          7337               4        1460
                                                       5   1461-1825
                                                       7        2555
                                                       8   2556-2920
                                                       9   2921-2955
                                                      10        3650
                                                   11-26   3651-9490
                                                      27   9491-9855
                                                      28  9856-10219
           ---------------------------------------------------------
           ASL II                   1459             1-3      1-1095
                                                       4   1096-1459
           ---------------------------------------------------------
</R>
<R>
</R>
Days listed assume 365 days per year and do not account for Leap Years.

<R>
* Annual Maintenance Fee is waived for account values of $100,000 or more.
</R>
1)For more information on these benefits, refer to the "Death Benefit" section
  in the Prospectus.
2)For more information on these benefits, refer to the "Living Benefit
  Programs" section in the Prospectus.
3)The Annuity Rewards benefit offers Owners an ability to increase the
  guaranteed death benefit so that the death benefit will at least equal the
  Annuity's account value on the effective date of the Annuity Rewards
  benefits, if the terms of the Annuity Rewards benefit are met.
<R>
4)These reductions result in hypothetical net rates of return corresponding to
  the 0% and 6% gross rates of return, respectively as follows: ASLII -3.02%
  and 2.80%; APEX II -3.02% and 2.80%; ASAP III -2.64% and 3.21% in years 1-8
  and -2.06% and 3.82% in years 9+, XTra Credit SIX -3.02% and 2.80% in years
  1-10 and -2.06% and 3.82% in years 11+.
</R>

                                      F-6




                                    AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
                                                 A Prudential Financial Company
                                One Corporate Drive, Shelton, Connecticut 06484

OPTIMUMSM
OPTIMUM FOURSM
OPTIMUM PLUSSM

Flexible Premium Deferred Annuities

<R>
PROSPECTUS: MAY 1, 2 0 0 6

This prospectus describes three different flexible premium deferred annuities
(the "Annuities" or the "Annuity") offered by American Skandia Life Assurance
Corporation ("American Skandia", "we", "our", or "us") exclusively through
Linsco/Private Ledger, Corp. Each Annuity may be offered as an individual
annuity contract or as an interest in a group annuity. Each Annuity has
different features and benefits that may be appropriate for you based on your
financial situation, your age and how you intend to use the Annuity. This
Prospectus describes the important features of the Annuities and what you
should consider before purchasing one of the Annuities. The Prospectus also
describes differences among the Annuities which include differences in the fees
and charges you pay and variations in some product features such as the
availability of certain bonus amounts and basic death benefit protection. These
differences among the products are discussed more fully in the Prospectus and
summarized in Appendix D entitled "Selecting the Variable Annuity That's Right
for You". There may also be differences in the compensation paid to your
Financial Professional for each Annuity. In addition, selling broker-dealer
firms through which each Annuity is sold may decline to make available to their
customers certain of the optional features offered generally under the Annuity.
Alternatively, such firms may restrict the availability of the optional
benefits that they do make available to their customers (e.g., by imposing a
lower maximum issue age for certain optional benefits than what is prescribed
generally under the Annuity). Please speak to your registered representative
for further details. Each Annuity or certain of its investment options and/or
features may not be available in all states. Various rights and benefits may
differ between states to meet applicable laws and/or regulations. For more
information about variations applicable to your state, please refer to your
Annuity contract or consult your Financial Professional. Certain terms are
capitalized in this Prospectus. Those terms are either defined in the Glossary
of Terms or in the context of the particular section.
</R>

The Sub-accounts
--------------------------------------------------------------------------------
<R>
Each Sub-account of American Skandia Life Assurance Corporation Variable
Account B invests in an underlying mutual fund portfolio. Currently, portfolios
of the following underlying mutual funds are being offered: American Skandia
Trust and Evergreen Variable Annuity Trust. See the following page for a
complete list of Sub-accounts.
</R>
Please Read This Prospectus
--------------------------------------------------------------------------------
Please read this Prospectus and the current prospectus for the underlying
mutual funds. Keep them for future reference. If you are purchasing one of the
Annuities as a replacement for an existing variable annuity or variable life
coverage or a fixed insurance policy, you should consider any surrender or
penalty charges you may incur when replacing your existing coverage and that
this Annuity may be subject to a contingent deferred sales charge if you elect
to surrender the Annuity or take a partial withdrawal. You should consider your
need to access the Annuity's Account Value and whether the Annuity's liquidity
features will satisfy that need.

Available Information
--------------------------------------------------------------------------------
We have also filed a Statement of Additional Information that is available from
us, without charge, upon your request. The contents of the Statement of
Additional Information are described on page 88. This Prospectus is part of the
registration statement we filed with the SEC regarding this offering.
Additional information on us and this offering is available in the registration
statement and the exhibits thereto. You may review and obtain copies of these
materials at the prescribed rates from the SEC's Public Reference Section, 100
F Street N.E., Washington, D.C., 20549. (See SEC file number 333-96577 for
Optimum, 333-71654 for Optimum Four and 333-71834 for Optimum Plus). These
documents, as well as documents incorporated by reference, may also be obtained
through the SEC's Internet Website (http://www.sec.gov) for this registration
statement as well as for other registrants that file electronically with the
SEC.
For Further Information call:
--------------------------------------------------------------------------------

  1-800-752-6342
These annuities are NOT deposits or obligations of, or issued, guaranteed or
endorsed by, any bank, are NOT insured or guaranteed by the U.S. government,
the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board or
any other agency. An investment in an annuity involves investment risks,
including possible loss of value, even with respect to amounts allocated to the
AST Money Market Sub-account.
These securities have not been approved or disapproved by the Securities and
Exchange Commission or any state securities commission nor has the Commission
or any state securities commission passed upon the accuracy or adequacy of this
Prospectus. Any representation to the contrary is a criminal offense.
Optimum/SM/, Optimum Four/SM/, Optimum Plus/SM/, are service marks or
registered trademarks of Linsco/Private Ledger, Corp.

<R>
Prospectus Dated: May 1, 2006 Statement of Additional Information Dated: May 1, 2006
OA074PROS-0506                                                              LPLOASAI
</R>
<R>
 PLEASE SEE OUR PRIVACY POLICY AND OUR IRA, ROTH IRA AND FINANCIAL DISCLOSURE
           STATEMENTS ATTACHED TO THE BACK COVER OF THIS PROSPECTUS.
</R>

Contents

<R>
Introduction.................................................................................... 1
Why Would I Choose to Purchase One of the Annuities?........................................... 1
What Are Some of the Key Features of the Annuities?............................................ 1
How Do I Purchase One of the Annuities?........................................................ 2
Glossary of Terms............................................................................... 3
Summary of Contract Fees and Charges............................................................ 5
Expense Examples................................................................................ 12
Investment Options.............................................................................. 13
What are the Investment Objectives and Policies of the Portfolio?.............................. 13
What are the Fixed Allocations?................................................................ 17
Fees and Charges................................................................................ 18
What are the Contract Fees and Charges?........................................................ 18
What Charges Apply to the Fixed Allocations?................................................... 20
What Charges Apply if I Choose an Annuity Payment Option?...................................... 20
Exceptions/Reductions to Fees and Charges...................................................... 20
Purchasing Your Annuity......................................................................... 21
What are Our Requirements for Purchasing One of the Annuities?................................. 21
Managing Your Annuity........................................................................... 22
May I Change the Owner, Annuitant and Beneficiary Designations?................................ 22
May I Return My Annuity if I Change My Mind?................................................... 22
May I Make Additional Purchase Payments?....................................................... 22
May I Make Scheduled Payments Directly from My Bank Account?................................... 23
May I Make Purchase Payments Through a Salary Reduction Program?............................... 23
Managing Your Account Value..................................................................... 24
How and When are Purchase Payments Invested?................................................... 24
How Do I Receive a Loyalty Credit Under the Optimum and Optimum Four Annuity?.................. 24
How Are Loyalty Credits Applied to My Account Value Under the Optimum and Optimum Four
Annuity?..................................................................................... 24
How Do I Receive Credits Under the Optimum Plus Annuity?....................................... 25
How Are Credits Applied to Account Value Under the Optimum Plus Annuity?....................... 25
Are There Restrictions or Charges on Transfers Between Investment Options?..................... 26
Do You Offer Dollar Cost Averaging?............................................................ 28
Do You Offer Any Automatic Rebalancing Programs?............................................... 28
Are Any Asset Allocation Programs Available?................................................... 29
Do You Offer Programs Designed to Guarantee a "Return of Premium" at a Future Date?............ 29
May I Give My Financial Professional Permission to Forward Transaction Instructions?........... 30
May I Authorize My Third Party Investment Advisor to Manage My Account?........................ 30
How Do the Fixed Allocations Work?............................................................. 31
How Do You Determine Rates for Fixed Allocations?.............................................. 32
How Does the Market Value Adjustment Work?..................................................... 32
What Happens When My Guarantee Period Matures?................................................. 33
Access To Account Value......................................................................... 34
What Types of Distributions are Available to Me?............................................... 34
Are There Tax Implications for Distributions?.................................................. 34
Can I Withdraw a Portion of My Annuity?........................................................ 34
How Much Can I Withdraw as a Free Withdrawal?.................................................. 35
Can I Make Periodic Withdrawals from My Annuity During the Accumulation Period?................ 35
Do You Offer a Program for Withdrawals Under Sections 72(t)/72(q) of the Internal Revenue Code? 35
What are Minimum Distributions and When Would I Need to Make Them?............................. 35
Can I Surrender My Annuity for Its Value?...................................................... 36
What is a Medically-Related Surrender and How Do I Qualify?.................................... 36
</R>

(i)

Contents

<R>
What Types of Annuity Options are Available?............................................. 36
How and When Do I Choose the Annuity Payment Option?..................................... 38
How are Annuity Payments Calculated?..................................................... 38
Living Benefit Programs................................................................... 40
Do You Offer Programs Designed to Provide Investment Protection for Owners While They are
Alive?................................................................................. 40
Guaranteed Return Option Plus/SM/ (GRO Plus/SM/)......................................... 40
Guaranteed Return Option (GRO)........................................................... 45
Guaranteed Minimum Withdrawal Benefit (GMWB)............................................. 48
Guaranteed Minimum Income Benefit (GMIB)................................................. 51
Lifetime Five Income Benefit (Lifetime Five)............................................. 56
Spousal Lifetime Five Income Benefit (Spousal Lifetime Five)............................. 62
Death Benefit............................................................................. 66
What Triggers the Payment of a Death Benefit?............................................ 66
Basic Death Benefit...................................................................... 66
Optional Death Benefits.................................................................. 66
American Skandia's Annuity Rewards....................................................... 70
Payment of Death Benefits................................................................ 71
Valuing Your Investment................................................................... 73
How is My Account Value Determined?...................................................... 73
What is the Surrender Value of My Annuity?............................................... 73
How and When Do You Value the Sub-Accounts?.............................................. 73
How Do You Value Fixed Allocations?...................................................... 73
When Do You Process and Value Transactions?.............................................. 73
What Happens to My Units When There is a Change in Daily Asset-Based Charges?............ 74
Tax Considerations........................................................................ 76
General Information....................................................................... 83
How Will I Receive Statements and Reports?............................................... 83
Who is American Skandia?................................................................. 83
What are Separate Accounts?.............................................................. 83
What is the Legal Structure of the Underlying Funds?..................................... 85
Who Distributes Annuities Offered by American Skandia?................................... 86
Incorporation of Certain Documents by Reference.......................................... 87
Financial Statements..................................................................... 87
How to Contact Us........................................................................ 87
Indemnification.......................................................................... 88
Legal Proceedings........................................................................ 88
Contents of the Statement of Additional Information...................................... 89
Appendix A -- Condensed Financial Information About Separate Account B.................... A-1
Appendix B -- Calculation of Optional Death Benefits...................................... B-1
Appendix C -- Additional Information on Asset Allocation Programs......................... C-1
Appendix D -- Selecting the Variable Annuity That's Right for You......................... D-1
</R>

(ii)




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Introduction

Why Would I Choose to Purchase One of the Annuities?
--------------------------------------------------------------------------------
The Annuities are frequently used for retirement planning because they allow
you to accumulate retirement savings and also offer annuity payment options
when you are ready to begin receiving income. Each Annuity also offers a choice
of different optional benefits, for an additional charge, that can provide
principal protection or guaranteed minimum income protection for Owners while
they are alive and one or more Death Benefits that can protect your retirement
savings if you die during a period of declining markets. Each Annuity may be
used as an investment vehicle for "qualified" investments, including an IRA,
SEP-IRA, Roth IRA, Section 401(a) plans (defined benefit plans and defined
contribution plans such as 401(k), profit sharing and money purchase plans) or
Tax Sheltered Annuity (or 403(b)). Each Annuity may also be used as an
investment vehicle for "non-qualified" investments. Each Annuity allows you to
invest your money in a number of Sub-accounts as well as in one or more Fixed
Allocations. This Prospectus describes four different Annuities including
features that these Annuities have in common as well as differences. For a
summary of each Annuity's features, please refer to Appendix D entitled,
"Selecting the Variable Annuity That's Right for You."

<R>
When an Annuity is purchased as a "non-qualified" investment, you generally are
not taxed on any investment gains the Annuity earns until you make a withdrawal
or begin to receive annuity payments. This feature, referred to as
"tax-deferral", can be beneficial to the growth of your Account Value because
money that would otherwise be needed to pay taxes on investment gains each year
remains invested and can earn additional money. However, because the Annuity is
designed for long-term retirement savings, a 10% penalty tax may be applied on
withdrawals you make before you reach age 59 1/2. Annuities purchased as a
non-qualified investment are not subject to the maximum contribution limits
that may apply to a qualified investment, and are not subject to required
minimum distributions after age 70 1/2.

When an Annuity is purchased as a "qualified" investment, you should consider
that the Annuity does not provide any tax advantages in addition to the
preferential treatment already available through your retirement plan under the
Internal Revenue Code. In other words, you need not invest in an Annuity to
gain the preferential tax treatment provided by your retirement plan. An
Annuity, however, may offer features and benefits in addition to providing tax
deferral that other investment vehicles may not offer, including Death Benefit
protection for your beneficiaries, lifetime income options and the ability to
make transfers between numerous variable investment options offered under the
Annuity. You should consult with your Financial Professional as to whether the
overall benefits and costs of the Annuity are appropriate considering your
overall financial plan.
</R>

What Are Some of the Key Features of the Annuities?
--------------------------------------------------------------------------------
. Each Annuity is a "flexible premium deferred annuity." It is called "flexible
  premium" because you have considerable flexibility in the timing and amount
  of Purchase Payments. Generally, investors "defer" receiving annuity payments
  until after an accumulation period.

. Each Annuity offers both Sub-accounts and Fixed Allocations. If you allocate
  your Account Value to Sub-accounts, the value of your Annuity will vary daily
  to reflect the investment performance of the underlying investment options.
  Fixed Allocations of different durations are offered that are guaranteed by
  us, but may have a Market Value Adjustment if you withdraw or transfer your
  Account Value before the Maturity Date.

. Each Annuity features two distinct periods -- the accumulation period and the
  payout period. During the accumulation period your Account Value is allocated
  to one or more investment options.

. During the payout period, commonly called "annuitization," you can elect to
  receive annuity payments (1) for life; (2) for life with a guaranteed minimum
  number of payments; (3) based on joint lives; or (4) for a guaranteed number
  of payments. We currently make annuity payments available on a fixed or
  variable basis. Variable payment options are made available through a
  different contract and prospectus.

. Each Annuity offers optional income benefits, for an additional charge, that
  can provide principal protection or guaranteed minimum income protection for
  Owners while they are alive.

. Each Annuity offers a basic Death Benefit. It also offers optional Death
  Benefits that provide an enhanced level of protection for your
  beneficiary(ies) for an additional charge.

. You are allowed to withdraw a limited amount of money from each Annuity on an
  annual basis without any charges, although any optional guaranteed benefit
  you elect may be reduced. Other product features allow you to access your
  Account Value as necessary, although a charge may apply.

. Transfers between investment options are tax-free. Currently, you may make
  twenty transfers each year free of charge. We also offer several programs
  that enable you to manage your Account Value as your financial needs and
  investment performance change.


                                      1




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Introduction continued

WITH RESPECT TO OPTIMUM PLUS ONLY:

<R>
. If you purchase this Annuity, we apply an additional amount (referred to as
  an Optimum Plus/SM/ amount, Purchase Credit or Credit ) to your Account Value
  with each Purchase Payment you make, including your initial Purchase Payment
  and any additional Purchase Payments during the first six Annuity Years.
. Please note that during the first 10 years, the total asset-based charges on
  the Optimum Plus Annuity are higher than many of our other annuities. In
  addition, the Contingent Deferred Sales Charge (CDSC) on the Optimum Plus
  Annuity is higher and is deducted for a longer period of time as compared to
  our other annuities. The Optimum Plus/SM/ amount is included in your Account
  Value. However, American Skandia may take back all Optimum Plus amounts if
  you return your Annuity under the "free-look" provision. In addition,
  American Skandia may take back an Optimum Plus amount associated with any
  Purchase Payment if (a) the Optimum Plus amount was applied within twelve
  (12) months prior to the death of the Owner (or Annuitant if entity owned) or
  (b) the Optimum Plus amount was applied within 12 months prior to a request
  to surrender the Annuity under the medically-related surrender provision. If
  you qualify for the 6.5% Optimum Plus in the first year (for annuities issued
  on or after February 13, 2006, subject to state availability), only 6% of
  that amount will be taken back upon death or medically-related surrender
  request, both as described above. However, we will take back the entire 6.5%
  if you "free-look" your Annuity.
  Inthese situations, your Account Value could be substantially reduced. The
    amount we take back will equal the Optimum Plus amount, without adjustment
    up or down for investment performance. Therefore, any gain on the Optimum
    Plus amount will not be taken back. But if there was a loss on the Optimum
    Plus amount, the amount we take back will still equal the of the Optimum
    Plus amount. Additional conditions and restrictions apply. We do not deduct
    a CDSC in any situation where we take back the Optimum Plus/SM/ amount.
. If replacing an annuity, please consider all charges associated with that
  annuity. Purchase Credits applicable to bonus products should not be viewed
  as an offset of any surrender charge that applies to any annuity contract you
  currently own. For more information on all available annuities, please see
  Appendix D of this prospectus.
</R>
WITH RESPECT TO OPTIMUM FOUR ONLY:
. For annuities issued on or after June 20, 2005 (subject to state
  availability) this Annuity offers a Loyalty Credit which we add to your
  Account Value with respect to Purchase Payments that have been made during
  the first four Annuity Years less withdrawals through the fifth Annuity
  Anniversary, subject to our rules and State availability.
WITH RESPECT TO OPTIMUM ONLY:
. For annuities issued on or after February 13, 2006 (subject to state
  availability) this Annuity offers a Loyalty Credit which we add to your
  Account Value with respect to Purchase Payments that have been made during
  the first four Annuity Years less withdrawals through the fifth Annuity
  Anniversary, subject to our rules and State availability.

How Do I Purchase One of the Annuities?
--------------------------------------------------------------------------------
<R>
We sell each Annuity through licensed, registered Financial Professionals.
Unless we agree otherwise and subject to our rules, each Annuity has minimum
initial Purchase Payments as follows: $1,000 for Optimum, $10,000 for Optimum
Plus and Optimum Four. We may allow you to make a lower initial Purchase
Payment provided you establish an electronic funds transfer under which
Purchase Payments received in the first Annuity Year total at least the minimum
initial Purchase Payment for the Annuity purchased. Unless we agree otherwise
and subject to our rules, if the Annuity is owned by an individual or
individuals, the oldest of those Owners must not be older than a maximum issue
age as of the Issue Date of the Annuity as follows: age 80 for Optimum, age 75
for Optimum Plus and age 85 for Optimum Four. If the Annuity is owned by an
entity, the annuitant must not be older than the maximum issue age, as of the
Issue Date of the Annuity unless we agree otherwise. The availability and level
of protection of certain optional benefits may vary based on the age of the
Owner on the Issue Date of the Annuity, on the date the benefit is elected or
the date of the Owner's death.
</R>


                                      2




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Glossary of Terms

Many terms used within this Prospectus are described within the text where they
appear. The description of those terms are not repeated in this Glossary of
Terms.
ACCOUNT VALUE
<R>
The value of each allocation to a Sub-account (also referred to as a "variable
investment option") or a Fixed Allocation prior to the Annuity Date, plus any
earnings, and/or less any losses, distributions and charges. The Account Value
is calculated before we assess any applicable Contingent Deferred Sales Charge
("CDSC" or "surrender charge") and/or, other than on a contract anniversary,
any fee that is deducted from the contract annually in arrears. The Account
Value is determined separately for each Sub-account and for each Fixed
Allocation, and then totaled to determine the Account Value for your entire
Annuity. The Account Value of each Fixed Allocation on other than its Maturity
Date may be calculated using a market value adjustment. With respect to Optimum
Plus, the Account Value includes any Credits we applied to your Purchase
Payments that we are entitled to take back under certain circumstances. With
respect to Optimum and Optimum Four, the Account Value includes any Loyalty
Credit we apply.
</R>

ANNUITIZATION
The application of Account Value (or Protected Income Value for the Guaranteed
Minimum Income Benefit, if applicable) to one of the available annuity options
for the Annuitant to begin receiving periodic payments for life (or joint
lives), for a guaranteed minimum number of payments or for life with a
guaranteed minimum number of payments.

ANNUITY DATE
The date you choose for annuity payments to commence. A maximum Annuity Date
may apply.

ANNUITY YEAR
A 12-month period commencing on the Issue Date of the Annuity and each
successive 12-month period thereafter.

CODE
The Internal Revenue Code of 1986, as amended from time to time.

<R>
COMBINATION 5% ROLL-UP AND HAV DEATH BENEFIT
We offer an Optional Death Benefit that, for an additional cost, provides an
enhanced level of protection for your beneficiary(ies) by providing the greater
of the Highest Anniversary Value Death Benefit and a 5% annual increase on
Purchase Payments adjusted for withdrawals.

CONTINGENT DEFERRED SALES CHARGE (CDSC)
This is a sales charge that may be deducted when you make a full or partial
withdrawal under your Annuity. We refer to this as a "contingent" charge
because it is imposed only if you make a withdrawal. The charge is a percentage
of each applicable Purchase Payment that is being withdrawn. The period during
which a particular percentage applies is measured from the effective date of
each Purchase Payment. The amount and duration of the CDSC varies among the X
Series, L Series, and B Series. See "Summary of Contract Fees and Charges" for
details on the CDSC for each Annuity.
</R>

<R>
ENHANCED BENEFICIARY PROTECTION DEATH BENEFIT
We offer an Optional Death Benefit that, for an additional cost, provides an
enhanced level of protection for your beneficiary(ies) by providing amounts in
addition to the basic Death Benefit that can be used to offset federal and
state taxes payable on any taxable gains in your Annuity at the time of your
death.
</R>

FIXED ALLOCATION
An investment option that offers a fixed rate of interest for a specified
Guarantee Period during the accumulation period.

<R>
FREE LOOK
Under state insurance laws, you have the right, during a limited period of
time, to examine your Annuity and decide if you want to keep it. This right is
referred to as your "free look" right. The length of this time period depends
on the law of your state, and may vary depending on whether your purchase is a
replacement or not. Check your Annuity contract for more details about your
free look right.

GUARANTEED MINIMUM INCOME BENEFIT (GMIB)
We offer a program that, for an additional cost, after a seven-year waiting
period, guarantees your ability to begin receiving income from your Annuity in
the form of annuity payments based on your total Purchase Payments and an
annual increase of 5% on such Purchase Payments adjusted for withdrawals
(called the "Protected Income Value"), regardless of the impact of market
performance on your Account Value.

GUARANTEED MINIMUM WITHDRAWAL BENEFIT (GMWB)
We offer a program that, for an additional cost, guarantees your ability to
withdraw amounts over time equal to an initial principal value, regardless of
the impact of market performance on your Account Value.
</R>

GUARANTEE PERIOD
A period of time during the accumulation period where we credit a fixed rate of
interest on a Fixed Allocation.

<R>
GUARANTEED RETURN OPTION PLUS/SM/ (GRO PLUS/SM/ )/GUARANTEED RETURN OPTION
We offer a program that, for an additional cost, guarantees a "return of
premium" at a future date, while allowing you to allocate all or a portion of
your Account Value to certain Sub-accounts.

HIGHEST ANNIVERSARY VALUE DEATH BENEFIT ("HAV")
We offer an Optional Death Benefit that, for an additional cost, provides an
enhanced level of protection for your beneficiary(ies) by providing a death
benefit equal to the greater of the basic Death Benefit and the Highest
Anniversary Value, less proportional withdrawals.
</R>


                                      3




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Glossary of Terms continued


<R>
HIGHEST DAILY VALUE DEATH BENEFIT ("HDV")
We offer an Optional Death Benefit that, for an additional cost, provides an
enhanced level of protection for your beneficiary(ies) by providing a death
benefit equal to the greater of the basic Death Benefit and the Highest Daily
Value, less proportional withdrawals.
</R>

INTERIM VALUE
The value of a Fixed Allocation on any date other than the Maturity Date. The
Interim Value is equal to the initial value allocated to the Fixed Allocation
plus all interest credited to the Fixed Allocation as of the date calculated,
less any transfers or withdrawals from the Fixed Allocation.

ISSUE DATE
The effective date of your Annuity.

<R>
LIFETIME FIVE INCOME BENEFIT
We offer a program that, for an additional cost, guarantees your ability to
withdraw amounts equal to a percentage of an initial principal value,
regardless of the impact of market performance on your Account Value, subject
to our program rules regarding the timing and amount of withdrawals.
</R>

MVA
A market value adjustment used in the determination of Account Value of each
Fixed Allocation on any day more than 30 days prior to the Maturity Date of
such Fixed Allocation.

OWNER
With an Annuity issued as an individual annuity contract, the Owner is either
an eligible entity or person named as having ownership rights in relation to
the Annuity. With an Annuity issued as a certificate under a group annuity
contract, the "Owner" refers to the person or entity who has the rights and
benefits designated as to the "Participant" in the certificate.

<R>
SPOUSAL LIFETIME FIVE INCOME BENEFIT
We offer a program that, for an additional cost, guarantees until the later
death of two Designated Lives (as defined in this Prospectus) the ability to
withdraw an annual amount equal to 5% of an initial principal value regardless
of the impact of market performance on the Account Value, subject to our
program rules regarding the timing and amount of withdrawals.

SUB-ACCOUNT
We issue your Annuity through our separate account. See "What is the Separate
Account?" under the General Information section. The separate account invests
in underlying mutual fund portfolios. From an accounting perspective, we divide
the separate account into a number of sections, each of which corresponds to a
particular underlying mutual fund portfolio. We refer to each such section of
our separate account as a "Sub-account".
</R>

SURRENDER VALUE
The value of your Annuity available upon surrender prior to the Annuity Date.
It equals the Account Value as of the date we price the surrender minus any
applicable CDSC, Annual Maintenance Fee, Tax Charge and the charge for any
optional benefits and any additional amounts we applied to your Purchase
Payments that we may be entitled to recover under certain circumstances. The
surrender value may be calculated using a MVA with respect to amounts in any
Fixed Allocation.

UNIT
A measure used to calculate your Account Value in a Sub-account during the
accumulation period.

VALUATION DAY
Every day the New York Stock Exchange is open for trading or any other day the
Securities and Exchange Commission requires mutual funds or unit investment
trusts to be valued.


                                      4




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Summary of Contract Fees and Charges

Below is a summary of the fees and charges for the Annuities. Some fees and
charges are assessed against each Annuity while others are assessed against
assets allocated to the Sub-accounts. The fees and charges that are assessed
against an Annuity include any applicable Contingent Deferred Sales Charge,
Transfer Fee, Tax Charge and Annual Maintenance Fee. The charges that are
assessed against the Sub-accounts are the Mortality and Expense risk charge,
the charge for Administration of the Annuity, any applicable Distribution
Charge and the charge for certain optional benefits you elect, other than the
Guaranteed Minimum Income Benefit, which is assessed against the Protected
Income Value. Each underlying mutual fund portfolio assesses a charge for
investment management, other expenses and with some mutual funds, a 12b-1
charge. The prospectus for each underlying mutual fund provides more detailed
information about the expenses for the underlying mutual funds.

The following table provides a summary of the fees and charges you will pay if
you surrender your Annuity or transfer Account Value among investment options.
These fees and charges are described in more detail within this Prospectus.

<R>
YOUR TRANSACTION FEES AND CHARGES
------------------------------------------------------------------------------------------------------------------------
(ASSESSED AGAINST EACH ANNUITY)

           FEE/CHARGE                       OPTIMUM                    OPTIMUM FOUR                 OPTIMUM PLUS
------------------------------------------------------------------------------------------------------------------------

Contingent Deferred Sales Charge*         Up to 7.5%**                 Up to 8.5%**                 Up to 9.0%**
------------------------------------------------------------------------------------------------------------------------

Transfer Fee**                         $10.00 (currently,           $10.00 (currently,           $10.00 (currently,
                                        $15.00 maximum)              $15.00 maximum)              $15.00 maximum)
------------------------------------------------------------------------------------------------------------------------

Tax Charge***                     0% to 3.5% of the value that 0% to 3.5% of the value that 0% to 3.5% of the value that
                                  is annuitized, depending on  is annuitized, depending on  is annuitized, depending on
                                  the requirements of the      the requirements of the      the requirements of the
                                  applicable jurisdiction.     applicable jurisdiction.     applicable jurisdiction.
------------------------------------------------------------------------------------------------------------------------
</R>

<R>
* The tables on the following page contain the Contingent Deferred Sales
Charges upon surrender or withdrawal. The charge is a percentage of each
applicable Purchase Payment deducted upon surrender or withdrawal. The period
during which a particular percentage applies is measured from the Issue Date of
the Annuity.
** Currently, we deduct the fee after the 20/th/ transfer each Annuity Year. We
guarantee that the number of charge free transfers per Annuity Year will never
be less than 8.
*** This charge is deducted generally at the time you annuitize your contract.
</R>


                                      5




AMERICAN SKANDIA ANNUITIES PROSPECTUS

The following table provides a summary of the periodic fees and charges you
will pay while you own your Annuity, excluding the underlying mutual fund
Portfolio annual expenses. These fees and charges are described in more detail
within this Prospectus.

YOUR PERIODIC FEES AND CHARGES
------------------------------------------------------------------------------------------------------------------------
(ASSESSED AGAINST EACH ANNUITY)

            FEE/CHARGE                       OPTIMUM                   OPTIMUM FOUR                 OPTIMUM PLUS
------------------------------------------------------------------------------------------------------------------------

Annual Maintenance Fee*            Smaller of $35 or 2% of      Smaller of $35 or 2% of     Smaller of $35 or 2% of
                                   Account Value**              Account Value**             Account Value
------------------------------------------------------------------------------------------------------------------------

ANNUAL FEES/CHARGES OF THE SUB-ACCOUNTS/1/
------------------------------------------------------------------------------------------------------------------------
(ASSESSED AS A PERCENTAGE OF THE DAILY NET ASSETS OF THE SUB-ACCOUNTS)
            FEE/CHARGE
------------------------------------------------------------------------------------------------------------------------

Mortality & Expense Risk Charge/2/            0.50%                        1.50%                       0.50%
------------------------------------------------------------------------------------------------------------------------
Administration Charge/2/                      0.15%                        0.15%                       0.15%
------------------------------------------------------------------------------------------------------------------------
                                                                                                  1.00% in Annuity
Distribution Charge/3/             0.60% in Annuity Years 1-8               N/A                      Years 1-10
------------------------------------------------------------------------------------------------------------------------
                                   1.40% per year of the value  1.40% per year of the value 1.40% per year of the value
                                   of each Sub-account if the   of each Sub-account if the  of each Sub-account if the
                                   Owner's beneficiary elects   Owner's beneficiary elects  Owner's beneficiary elects
                                   the Qualified Beneficiary    the Qualified Beneficiary   the Qualified Beneficiary
Settlement Service                 Continuation Option/5/       Continuation Option/5/      Continuation Option/5/
Charge/4/                          ("Qualified BCO")            ("Qualified BCO")           ("Qualified BCO")
------------------------------------------------------------------------------------------------------------------------
                                   1.25% per year of the value  1.65% per year of the value 1.65% per year of the value
                                   of each Sub-account in       of each Sub-account         of each Sub-account in
                                   Annuity Years 1-8; 0.65%     (1.40% per year if you are  Annuity Years 1-10; 0.65%
                                   in Annuity Years 9 and       a beneficiary electing the  in Annuity Years 11 and
                                   later (1.40% per year if you Qualified BCO)              later (1.40% per year if you
Total Annual Charges of the Sub-   are a beneficiary electing                               are a beneficiary
accounts                           the Qualified BCO)                                       electing the Qualified BCO)
------------------------------------------------------------------------------------------------------------------------

* Assessed annually on the Annuity's anniversary date or upon surrender.
<R>
** Only applicable if Account Value is less than $100,000 Assessed annually on
the Annuity's anniversary date or upon surrender.
</R>
1: These charges are deducted daily and apply to the Sub-accounts only.
2: The combination of the Mortality and Expense Risk Charge and Administration
Charge is referred to as the "Insurance Charge" elsewhere in this Prospectus.
3: The Distribution Charge is 0.00% in Annuity Years 9+ for Optimum and in
Annuity Years 11+ for Optimum Plus.
4: The Mortality & Expense Risk Charge, the Administration Charge and the
Distribution Charge (if applicable) do not apply if you are a beneficiary under
the Qualified Beneficiary Continuation Option. The Settlement Service Charge
applies only if your beneficiary elects the Qualified Beneficiary Continuation
Option.
5: When an Annuity is used as an IRA, 403(b) or other "qualified investment",
upon the Owner's death a beneficiary may generally elect to continue the
Annuity and receive Minimum Distributions under the Annuity instead of
receiving the death benefit in a single payment. If a beneficiary elects this
option, the beneficiary will incur the Settlement Service Charge. Please refer
to the section of this Prospectus that describes the Qualified Beneficiary
Continuation Option for more detailed information about this option, including
certain restrictions and limitations that may apply.


                                      7




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Summary of Contract Fees and Charges continued

<R>
The following table sets forth the charge for each optional benefit under the
Annuity. These fees would be in addition to the periodic fees and transaction
fees set forth in the tables above.
</R>

<R>
YOUR OPTIONAL BENEFIT FEES AND CHARGES
--------------------------------------------------------------------------------------------------
                                                 TOTAL             TOTAL             TOTAL
                         OPTIONAL               ANNUAL             ANNUAL            ANNUAL
                         BENEFIT                CHARGE*           CHARGE*           CHARGE*
                           FEE/                   for               for               for
OPTIONAL BENEFIT          CHARGE                OPTIMUM         OPTIMUM FOUR      OPTIMUM PLUS
--------------------------------------------------------------------------------------------------

GUARANTEED RETURN OPTION Plus/SM/ (GRO Plus/SM/ )/GUARANTEED RETURN OPTION
--------------------------------------------------------------------------------------------------
                 0.25% of average daily   1.50% in Annuity     1.90%; 1.65%   1.90% in Annuity
                 net assets of the Sub-   Years 1-8; 0.90% in  for Qualified  Years 1-10; 0.90% in
                 accounts                 Annuity Years 9 and  BCO            Annuity Years 11 and
                                          later; 1.65% for                    later; 1.65% for
                                          Qualified BCO                       Qualified BCO

GUARANTEED MINIMUM WITHDRAWAL BENEFIT (GMWB)**
--------------------------------------------------------------------------------------------------
                 0.35% of average daily   1.60% in Annuity     2.00%; 1.75%   2.00% in Annuity
                 net assets of the Sub-   Years 1-8; 1.00% in  for Qualified  Years 1-10; 1.00% in
                 accounts                 Annuity Years 9 and  BCO            Annuity Years 11 and
                                          later; 1.75% for                    later; 1.75% for
                                          Qualified BCO                       Qualified BCO

GUARANTEED MINIMUM INCOME BENEFIT (GMIB)**
--------------------------------------------------------------------------------------------------
                 0.50% per year of the    1.25% in Annuity     1.65% PLUS     1.65% in Annuity
                 average Protected        Years 1-8; 0.65% in  0.50% per year Years 1-10; 0.65% in
                 Income Value during      Annuity Years 9 and  of average     Annuity Years 11 and
                 each year; deducted      later PLUS 0.50% per Protected      later PLUS 0.50% per
                 annually in arrears each year of average      Income Value   year of average
                 Annuity Year             Protected Income                    Protected Income
                                          Value                               Value
</R>


                                      8




AMERICAN SKANDIA ANNUITIES PROSPECTUS

<R>
---------------------------------------------------------------------------------------------
                                               TOTAL           TOTAL            TOTAL
                        OPTIONAL              ANNUAL           ANNUAL           ANNUAL
                        BENEFIT               CHARGE*         CHARGE*          CHARGE*
                          FEE/                  for             for              for
OPTIONAL BENEFIT         CHARGE               OPTIMUM       OPTIMUM FOUR     OPTIMUM PLUS
---------------------------------------------------------------------------------------------

LIFETIME FIVE INCOME BENEFIT**
---------------------------------------------------------------------------------------------
                 0.60% of average daily 1.85% in Annuity    2.25%        2.25% in Annuity
                 net assets of the Sub- Years 1-8; 1.25% in              Years 1-10; 1.25% in
                 accounts               Annuity Years 9 and              Annuity Years 9 and
                                        later                            later

SPOUSAL LIFETIME FIVE INCOME BENEFIT**
---------------------------------------------------------------------------------------------
                 0.75% of average daily 2.00% in Annuity    2.40%        2.40% in Annuity
                 net assets of the      Years 1-8; 1.40% in              Years 1-10; 1.40% in
                 Subaccounts            Annuity Years 9 and              Annuity Years 11 and
                                        later                            later

ENHANCED BENEFICIARY PROTECTION DEATH BENEFIT**
---------------------------------------------------------------------------------------------
                 0.25% of average daily 1.50% in Annuity    1.90%        1.90% in Annuity
                 net assets of the      Years 1-8; 0.90% in              Years 1-10; 0.90% in
                 Subaccounts            Annuity Years 9 and              Annuity Years 11 and
                                        later                            later

HIGHEST ANNIVERSARY VALUE DEATH BENEFIT ("HAV")**
---------------------------------------------------------------------------------------------
                 0.25% of average daily 1.50% in Annuity    1.90%        1.90% in Annuity
                 net assets of the      Years 1-8; 0.90% in              Years 1-10; 0.90% in
                 Subaccounts            Annuity Years 9 and              Annuity Years 11 and
                                        later                            later

COMBINATION 5% ROLL-UP AND HAV DEATH BENEFIT**
---------------------------------------------------------------------------------------------
                 0.50% of average daily 1.75% in Annuity    2.15%        2.15% in Annuity
                 net assets of the Sub- Years 1-8; 1.15% in              Years 1-10; 1.15% in
                 accounts               Annuity Years 9 and              Annuity Years 11 and
                                        later                            later
</R>


                                      9




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Summary of Contract Fees and Charges continued
<R>
------------------------------------------------------------------------------------------------------------------------------
                                                            TOTAL                   TOTAL                  TOTAL
                                                           ANNUAL                   ANNUAL                 ANNUAL
                               OPTIONAL                    CHARGE*                 CHARGE*                CHARGE*
                               BENEFIT                       for                     for                    for
OPTIONAL BENEFIT              FEE/CHARGE                   OPTIMUM               OPTIMUM FOUR           OPTIMUM PLUS
------------------------------------------------------------------------------------------------------------------------------

HIGHEST DAILY VALUE DEATH BENEFIT ("HDV")**
------------------------------------------------------------------------------------------------------------------------------
                          0.50% of average             1.75% in Annuity          2.15%                2.15% in Annuity
                          daily net assets of          Years 1-8; 1.15%                               Years 1-10;
                          the Sub-accounts             in Annuity Years                               1.15% in Annuity
                                                       9 and later                                    Years 11 and
                                                                                                      later
------------------------------------------------------------------------------------------------------------------------------
Please refer to the section of this Prospectus that describes each optional benefit for a complete description of the benefit,
including any restrictions or limitations that may apply.
------------------------------------------------------------------------------------------------------------------------------
</R>

* The Total Annual Charge includes the Insurance Charge and Distribution Charge
(if applicable) assessed against the average daily net assets allocated to the
Sub-accounts. If you elect more than one optional benefit, the Total Annual
Charge would be increased to include the charge for each optional benefit.
** These optional benefits are not available under the Qualified BCO.

<R>
   The following table provides the range (minimum and maximum) of the total
annual expenses for the underlying mutual funds ("Portfolios") as of December
31, 2005. Each figure is stated as a percentage of the underlying Portfolio's
average daily net assets.
</R>

<R>
           TOTAL ANNUAL PORTFOLIO OPERATING EXPENSES
           ---------------------------------------------------------
                                                     MINIMUM MAXIMUM
           ---------------------------------------------------------
               Total Portfolio Operating Expense      0.63%  1.26%
</R>

<R>
The following are the total annual expenses for each underlying mutual fund
("Portfolio") as of December 31, 2005, except as noted. The "Total Annual
Portfolio Operating Expenses" reflect the combination of the underlying
Portfolio's investment management fee, other expenses and any 12b-1 fees. Each
figure is stated as a percentage of the underlying Portfolio's average daily
net assets. There is no guarantee that actual expenses will be the same as
those shown in the table. For certain of the underlying Portfolios, a portion
of the management fee has been waived and/or other expenses have been partially
reimbursed. The existence of any such fee waivers and/or reimbursements have
been reflected in the footnotes. The following expenses are deducted by the
underlying Portfolio before it provides American Skandia with the daily net
asset value. The underlying Portfolio information was provided by the
underlying mutual funds and has not been independently verified by us. See the
prospectuses or statements of additional information of the underlying
Portfolios for further details. The current prospectus and statement of
additional information for the underlying Portfolios can be obtained by calling
1-800-752-6342.
</R>

<R>
UNDERLYING MUTUAL FUND PORTFOLIO ANNUAL EXPENSES
--------------------------------------------------------------------------------------------------
(AS A PERCENTAGE OF THE AVERAGE NET ASSETS OF THE UNDERLYING PORTFOLIOS)
                                                       FOR THE YEAR ENDED DECEMBER 31, 2005
                                                  -----------------------------------------------
                                                                                  TOTAL ANNUAL
                                                  MANAGEMENT   OTHER     12B-1 PORTFOLIO OPERATING
           UNDERLYING PORTFOLIO                      FEES    EXPENSES/1/  FEE       EXPENSES

American Skandia Trust/2,3/
--------------------------------------------------------------------------------------------------
      AST AllianceBernstein Core Value              0.75%      0.19%     0.00%        0.94%
      AST AllianceBernstein Growth & Income         0.75%      0.13%     0.00%        0.88%
      AST DeAM Small-Cap Growth                     0.95%      0.20%     0.00%        1.15%
      AST Federated Aggressive Growth               0.95%      0.17%     0.00%        1.12%
      AST Goldman Sachs Mid-Cap Growth              1.00%      0.18%     0.00%        1.18%
</R>


                                      10

AMERICAN SKANDIA ANNUITIES PROSPECTUS

<R>
FOR THE YEAR ENDED DECEMBER 31, 2005
TOTAL ANNUAL
MANAGEMENT OTHER 12B-1 PORTFOLIO OPERATING
UNDERLYING PORTFOLIO FEES EXPENSES/1/ FEES EXPENSES

American Skandia Trust:/2,3/ continued
---------------------------------------------------------------------------------------------------
AST JPMorgan International Equity 0.88% 0.19% 0.00% 1.07%
AST Large-Cap Value/4/ 0.75% 0.16% 0.00% 0.91%
AST Lord Abbett Bond Debenture 0.80% 0.17% 0.00% 0.97%
AST LSV International Value 1.00% 0.26% 0.00% 1.26%
AST Marsico Capital Growth 0.90% 0.13% 0.00% 1.03%
AST MFS Growth 0.90% 0.18% 0.00% 1.08%
AST Money Market/5/ 0.50% 0.13% 0.00% 0.63%
AST Neuberger Berman Mid-Cap Value 0.89% 0.14% 0.00% 1.03%
AST PIMCO Limited Maturity Bond 0.65% 0.15% 0.00% 0.80%
AST PIMCO Total Return Bond 0.65% 0.15% 0.00% 0.80%
AST Small-Cap Growth 0.90% 0.25% 0.00% 1.15%
AST Small-Cap Value/6/ 0.90% 0.17% 0.00% 1.07%
AST T. Rowe Price Large-Cap Growth/7/ 0.90% 0.21% 0.00% 1.11%
AST T. Rowe Price Global Bond 0.80% 0.21% 0.00% 1.01%
AST William Blair International Growth 1.00% 0.18% 0.00% 1.18%

Evergreen Variable Annuity Trust:
---------------------------------------------------------------------------------------------------
International Equity 0.41% 0.30% 0.00% 0.71%
Omega 0.52% 0.19% 0.00% 0.71%
</R>

1: As noted above, shares of the Portfolios generally are purchased through
variable insurance products. Many of the Portfolios and/or their investment
advisers and/or distributors have entered into arrangements with us as the
issuer of each Annuity under which they compensate us for providing ongoing
services in lieu of the Trust providing such services. Amounts paid by a
Portfolio under those arrangements are included under "Other Expenses." For
more information see the prospectus for each underlying portfolio and, "Service
Fees payable to American Skandia," later in this prospectus.
<R>
2: The total actual operating expenses for certain of the Portfolios listed
above for the year ended December 31, 2005 were less than the amounts shown in
the table above, due to fee waivers, reimbursement of expenses, and expense
offset arrangements ("Arrangements"). These Arrangements are voluntary and may
be terminated at any time. In addition, the Arrangements may be modified
periodically. For more information regarding the Arrangements, please see the
prospectus and statement of additional information for the Portfolios.
3: Until November 18, 2004, the Trust had a Distribution Plan under Rule 12b-1
to permit an affiliate of the Trust's Investment Managers to receive brokerage
commissions in connection with purchases and sales of securities held by the
Portfolios, and to use these commissions to promote the sale of shares of the
Portfolio. The Distribution Plan was terminated effective November 18, 2004.
4: Effective March 20, 2006, Dreman Value Management LLC became a Sub-advisor
along with J.P. Morgan Investment Management, Inc. and Hotchkis & Wiley Capital
Management, LLC. Between December 5, 2005 and March 20, 2006, J.P. Morgan
Investment Management, Inc. and Hotchkis & Wiley Capital Management, LLC served
as Co-Sub-advisors of the Portfolio. Prior to December 5, 2005, Hotchkis &
Wiley Capital Management, LLC served as Sub-advisor of the Portfolio, then
named the "AST Hotchkis & Wiley Large-Cap Value Portfolio."
5: Effective December 5, 2005, Prudential Investment Management, Inc. became
the Sub-advisor of the Portfolio. Prior to December 5, 2005, Wells Capital
Management, Inc. served as Sub-advisor of the Portfolio.
6: Effective March 20, 2006, Dreman Value Management LLC became a Sub-advisor
along with Salomon Brothers Asset Management, Inc., J.P. Morgan Investment
Management, Inc. and Lee Munder Capital Group. Between December 5, 2005 and
March 20, 2006, Salomon Brothers Asset Management, Inc., J.P. Morgan Investment
Management, Inc., Lee Munder Capital Group and Integrity Asset Management
served as Sub-advisors of the Portfolio. Prior to December 5, 2005, J.P. Morgan
Investment Management, Inc., Lee Munder Capital Group and Integrity Asset
Management served as Sub-advisors of the Portfolio. The name of the Portfolio
remains unchanged.
7: Effective December 5, 2005, T. Rowe Price Associates, Inc. became the
Sub-advisor of the Portfolio. Prior to December 5, 2005, Alliance Capital
Management, L.P. served as Sub-advisor of the Portfolio, then named the "AST
AllianceBernstein Large-Cap Growth Portfolio."
</R>
<R>
</R>




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Expense Examples

These examples are intended to help you compare the cost of investing in one
American Skandia Annuity with the cost of investing in other American Skandia
Annuities and/or other variable annuities.
Below are examples for each Annuity showing what you would pay in expenses at
the end of the stated time periods had you invested $10,000 in the Annuity and
your investment has a 5% return each year.
The examples reflect the following fees and charges for each Annuity as
described in "Summary of Contract Fees and Charges":

. Insurance Charge
. Distribution Charge (if applicable)
. Contingent Deferred Sales Charge (when and if applicable)
. Annual Maintenance Fee
. The maximum combination of optional benefit charges

The examples also assume the following for the period shown:

<R>
. You allocate all of your Account Value to the Sub-account with the maximum
  total annual operating expenses, and those expenses remain the same each year
</R>
. You make no withdrawals of Account Value
. You make no transfers, or other transactions for which we charge a fee
. No tax charge applies
. You elect the Lifetime Five Income Benefit, the Highest Daily Value Death
  Benefit and the Enhanced Beneficiary Protection Death Benefit (which are the
  maximum combination of optional benefit charges)
. For the Optimum Plus example, the Credit applicable to the Annuity is 6.5% of
  the Purchase Payment*
. For the Optimum Four example, the Loyalty Credit applies to the Annuity and
  is equal to 2.75% of total purchase payments made during the first four
  Annuity years
. For the Optimum example, the Loyalty Credit applies to the Annuity and is
  equal to 0.50% of total purchase payment made during the first four Annuity
  years.

Amounts shown in the examples are rounded to the nearest dollar.

* The Credit that is applied to Purchase Payments received after the first
  Annuity Year is less than 6.5% (see "How do I Receive Credits?")
The examples are illustrative only -- they should not be considered a
representation of past or future expenses of the underlying mutual funds or
their portfolios -- actual expenses will be less than those shown if you elect
a different combination of optional benefits than indicated in the examples or
if you allocate Account Value to any other available Sub-accounts.

Expense Examples are provided as follows: 1.) if you surrender the Annuity at
the end of the stated time period; 2.) if you annuitize at the end of the
stated time period; and 3.) if you do not surrender your Annuity. A table of
accumulation values appears in Appendix A to this Prospectus.
<R>
             IF YOU SURRENDER YOUR ANNUITY AT THE IF YOU ANNUITIZE YOUR ANNUITY AT THE  IF YOU DO NOT SURRENDER
             END OF THE APPLICABLE TIME PERIOD:   END OF THE APPLICABLE TIME PERIOD:/1/ YOUR ANNUITY:
-------------------------------------------------------------------------------------------------------------------
             1 YR     3 YRS    5 YRS    10 YRS    1 YR     3 YRS     5 YRS    10 YRS    1 YR  3 YRS  5 YRS  10 YRS
Optimum      $1,098   $1,863   $2,597   $ 4,256   $ 423    $1,278    $2,147   $ 4,256   $ 423 $1,278 $2,147 $ 4,256
Optimum Four $1,227   $2,021   $2,328   $ 4,701   $ 462    $1,391    $2,328   $ 4,701   $ 462 $1,391 $2,328 $ 4,701
Optimum Plus $1,354   $2,291   $3,139   $ 5,175     N/A       N/A    $2,467   $ 4,983   $ 490 $1,475 $2,467 $ 4,983
</R>

1: If you own Optimum Plus, you may not annuitize in the first Three (3)
Annuity Years; if you own Optimum or Optimum Four, you may not annuitize in the
first Annuity Year.


                                      12




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Investment Options

WHAT ARE THE INVESTMENT OBJECTIVES AND POLICIES OF THE PORTFOLIO?
Each variable investment option is a Sub-account of American Skandia Life
Assurance Corporation Variable Account B (see "What are Separate Accounts" for
more detailed information). Each Sub-account invests exclusively in one
Portfolio. You should carefully read the prospectus for any Portfolio in which
you are interested. The following chart classifies each of the Portfolios based
on our assessment of their investment style (as of the date of this
Prospectus). The chart also provides a description of each Portfolio's
investment objective (in italics) and a short, summary description of their key
policies to assist you in determining which Portfolios may be of interest to
you. There is no guarantee that any underlying Portfolio will meet its
investment objective.
<R>
   The name of the advisor/sub-advisor for each Portfolio appears next to the
description. Those Portfolios whose name includes the prefix "AST" are
Portfolios of American Skandia Trust. The investment managers for AST are
American Skandia Investment Services, Incorporated, a Prudential Financial
Company, and Prudential Investments LLC, both of which are affiliated companies
of American Skandia. However, a sub-advisor, as noted below, is engaged to
conduct day-to-day management.
</R>
   The Portfolios are not publicly traded mutual funds. They are only available
as investment options in variable annuity contracts and variable life insurance
policies issued by insurance companies, or in some cases, to participants in
certain qualified retirement plans. However, some of the Portfolios available
as Sub-accounts under the Annuities are managed by the same portfolio advisor
or sub-advisor as a retail mutual fund of the same or similar name that the
Portfolio may have been modeled after at its inception. Certain retail mutual
funds may also have been modeled after a Portfolio. While the investment
objective and policies of the retail mutual funds and the Portfolios may be
substantially similar, the actual investments will differ to varying degrees.
Differences in the performance of the funds can be expected, and in some cases
could be substantial. You should not compare the performance of a publicly
traded mutual fund with the performance of any similarly named Portfolio
offered as a Sub-account. Details about the investment objectives, policies,
risks, costs and management of the Portfolios are found in the prospectuses for
the underlying mutual funds. The current prospectus and statement of additional
information for the underlying Portfolios can be obtained by calling
1-800-752-6342.

<R>
                                                            PORTFOLIO
                                                            ADVISOR/
   STYLE/ TYPE    INVESTMENT OBJECTIVES/POLICIES           SUB-ADVISOR
   -------------------------------------------------------------------------
    LARGE CAP  AST AllianceBernstein Core Value       AllianceBernstein L.P.
    VALUE      Portfolio: seeks long-term capital
               growth by investing primarily in
               common stocks. The Sub-advisor
               expects that the majority of the
               Portfolio's assets will be invested
               in the common stocks of large
               companies that appear to be
               undervalued. Among other things, the
               Portfolio seeks to identify
               compelling buying opportunities
               created when companies are
               undervalued on the basis of investor
               reactions to near-term problems or
               circumstances even though their
               long-term prospects remain sound. The
               Sub-advisor seeks to identify
               individual companies with earnings
               growth potential that may not be
               recognized by the market at large.
   -------------------------------------------------------------------------
    LARGE CAP  AST AllianceBernstein Growth & Income  AllianceBernstein L.P.
    VALUE      Portfolio: seeks long-term growth of
               capital and income while attempting
               to avoid excessive fluctuations in
               market value. The Portfolio normally
               will invest in common stocks (and
               securities convertible into common
               stocks). The Sub-advisor will take a
               value-oriented approach, in that it
               will try to keep the Portfolio's
               assets invested in securities that
               are selling at reasonable valuations
               in relation to their fundamental
               business prospects. The stocks that
               the Portfolio will normally invest in
               are those of seasoned companies.
   -------------------------------------------------------------------------
</R>


                                      13




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Investment Options continued
<R>
                                                             PORTFOLIO
                                                             ADVISOR/
     STYLE/ TYPE     INVESTMENT OBJECTIVES/POLICIES         SUB-ADVISOR
    -----------------------------------------------------------------------
    SMALL CAP     AST DeAM Small-Cap Growth Portfolio:   Deutsche Asset
    GROWTH        seeks maximum growth of investors'     Management, Inc.
                  capital from a portfolio of growth
                  stocks of smaller companies. The
                  Portfolio pursues its objective,
                  under normal circumstances, by
                  primarily investing at least 80% of
                  its total assets in the equity
                  securities of small-sized companies
                  included in the Russell 2000
                  Growth(R) Index. The Sub-advisor
                  employs an investment strategy
                  designed to maintain a portfolio of
                  equity securities which approximates
                  the market risk of those stocks
                  included in the Russell 2000
                  Growth(R) Index, but which attempts
                  to outperform the Russell 2000
                  Growth(R) Index.
    -----------------------------------------------------------------------
    SMALL CAP     AST Federated Aggressive Growth        Federated Equity
    GROWTH        Portfolio: seeks capital growth. The   Management
                  Portfolio pursues its investment       Company of
                  objective by investing primarily in    Pennsylvania/
                  the stocks of small companies that     Federated Global
                  are traded on national security        Investment
                  exchanges, NASDAQ stock exchange and   Management Corp.
                  the over-the-counter-market. Small
                  companies will be defined as
                  companies with market capitalizations
                  similar to companies in the Russell
                  2000 Growth Index. Up to 25% of the
                  Portfolio's net assets may be
                  invested in foreign securities, which
                  are typically denominated in foreign
                  currencies.
    -----------------------------------------------------------------------
    MID CAP       AST Goldman Sachs Mid-Cap Growth       Goldman Sachs
    GROWTH        Portfolio: seeks long-term capital     Asset
                  growth. The Portfolio pursues its      Management, L.P.
                  investment objective, by investing
                  primarily in equity securities
                  selected for their growth potential,
                  and normally invests at least 80% of
                  the value of its assets in medium
                  capitalization companies. For
                  purposes of the Portfolio,
                  medium-sized companies are those
                  whose market capitalizations
                  (measured at the time of investment)
                  fall within the range of companies in
                  the Russell Mid Cap Growth Index. The
                  Sub-advisor seeks to identify
                  individual companies with earnings
                  growth potential that may not be
                  recognized by the market at large.
    -----------------------------------------------------------------------
    INTERNATIONAL AST JPMorgan International Equity      J.P. Morgan
    EQUITY        Portfolio: seeks long-term capital     Investment
                  growth by investing in a diversified   Management Inc.
                  portfolio of international equity
                  securities. The Portfolio seeks to
                  meet its objective by investing,
                  under normal market conditions, at
                  least 80% of its assets in a
                  diversified portfolio of equity
                  securities of companies located or
                  operating in developed non-U.S.
                  countries and emerging markets of the
                  world. The equity securities will
                  ordinarily be traded on a recognized
                  foreign securities exchange or traded
                  in a foreign over-the-counter market
                  in the country where the issuer is
                  principally based, but may also be
                  traded in other countries including
                  the United States.
    -----------------------------------------------------------------------
    LARGE CAP     AST Large-Cap Value Portfolio          Dreman Value
    VALUE         (formerly AST Hotchkis and Wiley       Management LLC,
                  Large-Cap Value Portfolio): seeks      Hotchkis and Wiley
                  current income and long-term growth    Capital
                  of income, as well as capital          Management, LLC;
                  appreciation. The Portfolio invests,   J.P. Morgan
                  under normal circumstances, at least   Investment
                  80% of its net assets in common        Management Inc.
                  stocks of large cap U.S. companies.
                  The Portfolio focuses on common
                  stocks that have a high cash dividend
                  or payout yield relative to the
                  market or that possess relative value
                  within sectors.
    -----------------------------------------------------------------------
</R>


                                      14




AMERICAN SKANDIA ANNUITIES PROSPECTUS

<R>
                                                             PORTFOLIO
                                                             ADVISOR/
     STYLE/ TYPE     INVESTMENT OBJECTIVES/POLICIES         SUB-ADVISOR
    -----------------------------------------------------------------------
    FIXED         AST Lord Abbett Bond-Debenture         Lord, Abbett & Co.
    INCOME        Portfolio: seeks high current income   LLC
                  and the opportunity for capital
                  appreciation to produce a high total
                  return. To pursue its objective, the
                  Portfolio will invest, under normal
                  circumstances, at least 80% of the
                  value of its assets in fixed income
                  securities and normally invests
                  primarily in high yield and
                  investment grade debt securities,
                  securities convertible into common
                  stock and preferred stocks. The
                  Portfolio may find good value in high
                  yield securities, sometimes called
                  "lower-rated bonds" or "junk bonds,"
                  and frequently may have more than
                  half of its assets invested in those
                  securities. At least 20% of the
                  Portfolio's assets must be invested
                  in any combination of investment
                  grade debt securities, U.S.
                  Government securities and cash
                  equivalents. The Portfolio may also
                  make significant investments in
                  mortgage-backed securities. Although
                  the Portfolio expects to maintain a
                  weighted average maturity in the
                  range of five to twelve years, there
                  are no restrictions on the overall
                  Portfolio or on individual
                  securities. The Portfolio may invest
                  up to 20% of its net assets in equity
                  securities.
    -----------------------------------------------------------------------
    INTERNATIONAL AST LSV International Value            LSV Asset
    EQUITY        Portfolio: seeks capital growth. The   Management
                  Portfolio pursues its objective by
                  primarily investing at least 80% of
                  the value of its assets in the equity
                  securities of companies in developed
                  non-U.S. countries that are
                  represented in the MSCI EAFE Index.
                  The target of this Portfolio is to
                  outperform the unhedged US Dollar
                  total return (net of foreign dividend
                  withholding taxes) of the MSCI EAFE
                  Index. The Sub-Advisor uses
                  proprietary quantitative models to
                  manage the Portfolio in a bottom-up
                  security selection approach combined
                  with overall portfolio risk
                  management.
    -----------------------------------------------------------------------
    LARGE CAP     AST Marsico Capital Growth Portfolio:  Marsico Capital
    GROWTH        seeks capital growth. Income           Management, LLC
                  realization is not an investment
                  objective and any income realized on
                  the Portfolio's investments,
                  therefore, will be incidental to the
                  Portfolio's objective. The Portfolio
                  will pursue its objective by
                  investing primarily in common stocks
                  of larger, more established
                  companies. In selecting investments
                  for the Portfolio, the Sub-advisor
                  uses an approach that combines "top
                  down" economic analysis with "bottom
                  up" stock selection. The "top down"
                  approach identifies sectors,
                  industries and companies that may
                  benefit from the trends the
                  Sub-advisor has observed. The
                  Sub-advisor then looks for individual
                  companies with earnings growth
                  potential that may not be recognized
                  by the market at large, utilizing a
                  "bottom up" stock selection process.
                  The Portfolio will normally hold a
                  core position of between 35 and 50
                  common stocks. The Portfolio may hold
                  a limited number of additional common
                  stocks at times when the Portfolio
                  manager is accumulating new
                  positions, phasing out existing or
                  responding to exceptional market
                  conditions.
    -----------------------------------------------------------------------
    LARGE CAP     AST MFS Growth Portfolio: seeks        Massachusetts
    GROWTH        long-term capital growth and future    Financial Services
                  income. Under normal market            Company
                  conditions, the Portfolio invests at
                  least 80% of its total assets in
                  common stocks and related securities,
                  such as preferred stocks, convertible
                  securities and depositary receipts,
                  of companies that the Sub-advisor
                  believes offer better than average
                  prospects for long-term growth. The
                  Sub-advisor seeks to purchase
                  securities of companies that it
                  considers well-run and poised for
                  growth. The Portfolio may invest up
                  to 35% of its net assets in foreign
                  securities.
    -----------------------------------------------------------------------
    FIXED         AST Money Market Portfolio: seeks      Prudential
    INCOME        high current income while maintaining  Investment
                  high levels of liquidity. The          Management, Inc.
                  Portfolio attempts to accomplish its
                  objective by maintaining a
                  dollar-weighted average maturity of
                  not more than 90 days and by
                  investing in securities which have
                  effective maturities of not more than
                  397 days.
    -----------------------------------------------------------------------
</R>


                                      15




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Investment Options continued
<R>
                                                             PORTFOLIO
                                                             ADVISOR/
     STYLE/ TYPE    INVESTMENT OBJECTIVES/POLICIES          SUB-ADVISOR
     ----------------------------------------------------------------------
      MID CAP    AST Neuberger Berman Mid-Cap Value     Neuberger Berman
      VALUE      Portfolio: seeks capital growth.       Management Inc.
                 Under normal market conditions, the
                 Portfolio primarily invests at least
                 80% of its net assets in the common
                 stocks of mid-cap companies. For
                 purposes of the Portfolio, companies
                 with equity market capitalizations
                 that fall within the range of the
                 Russell Midcap(R) Index at the time
                 of investment are considered mid-cap
                 companies. Some of the Portfolio's
                 assets may be invested in the
                 securities of large-cap companies as
                 well as in small-cap companies. Under
                 the Portfolio's value-oriented
                 investment approach, the Sub-advisor
                 looks for well-managed companies
                 whose stock prices are undervalued
                 and that may rise in price before
                 other investors realize their worth.
     ----------------------------------------------------------------------
      FIXED      AST PIMCO Limited Maturity Bond        Pacific Investment
      INCOME     Portfolio: seeks to maximize total     Management
                 return consistent with preservation    Company LLC
                 of capital and prudent investment      (PIMCO)
                 management. The Portfolio will invest
                 in a diversified portfolio of
                 fixed-income securities of varying
                 maturities. The average portfolio
                 duration of the Portfolio generally
                 will vary within a one- to three-year
                 time frame based on the Sub-advisor's
                 forecast for interest rates.
     ----------------------------------------------------------------------
      FIXED      AST PIMCO Total Return Bond            Pacific Investment
      INCOME     Portfolio: seeks to maximize total     Management
                 return consistent with preservation    Company LLC
                 of capital and prudent investment      (PIMCO)
                 management. The Portfolio will invest
                 in a diversified portfolio of
                 fixed-income securities of varying
                 maturities. The average portfolio
                 duration of the Portfolio generally
                 will vary within a three- to six-year
                 time frame based on the Sub-advisor's
                 forecast for interest rates.
     ----------------------------------------------------------------------
      SMALL CAP  AST Small-Cap Growth Portfolio: seeks  Eagle Asset
      GROWTH     long-term capital growth. The          Management/
                 Portfolio pursues its objective by     Neuberger Berman
                 primarily investing in the common      Management Inc.
                 stocks of small-capitalization
                 companies, which is defined as a
                 company with a market capitalization,
                 at the time of purchase, no larger
                 than the largest capitalized company
                 included in the Russell 2000 Index
                 during the most recent 11-month
                 period (based on month-end data) plus
                 the most recent data during the
                 current month.
     ----------------------------------------------------------------------
      SMALL CAP  AST Small-Cap Value Portfolio: seeks   Lee Munder
      VALUE      to provide long-term capital growth    Investments, Ltd;
                 by investing primarily in              J.P. Morgan
                 small-capitalization stocks that       Investment
                 appear to be undervalued. The          Management Inc.;
                 Portfolio will have a non-fundamental  Salomon Brothers
                 policy to invest, under normal         Asset
                 circumstances, at least 80% of the     Management Inc;
                 value of its net assets in small       Dreman Value
                 capitalization stocks. The Portfolio   Management LLC
                 will focus on common stocks that
                 appear to be undervalued.
     ----------------------------------------------------------------------
      FIXED      AST T. Rowe Price Global Bond          T. Rowe Price
      INCOME     Portfolio: seeks to provide high       International, Inc.
                 current income and capital growth by
                 investing in high-quality foreign and
                 U.S. dollar-denominated bonds. The
                 Portfolio will invest at least 80% of
                 its total assets in fixed income
                 securities, including high quality
                 bonds issued or guaranteed by U.S. or
                 foreign governments or their agencies
                 and by foreign authorities, provinces
                 and municipalities as well as
                 investment grade corporate bonds and
                 mortgage and asset-backed securities
                 of U.S. and foreign issuers. The
                 Portfolio generally invests in
                 countries where the combination of
                 fixed-income returns and currency
                 exchange rates appears attractive,
                 or, if the currency trend is
                 unfavorable, where the Sub-advisor
                 believes that the currency risk can
                 be minimized through hedging. The
                 Portfolio may also invest up to 20%
                 of its assets in the aggregate in
                 below investment-grade, high-risk
                 bonds ("junk bonds"). In addition,
                 the Portfolio may invest up to 30% of
                 its assets in mortgage-backed
                 (including derivatives, such as
                 collateralized mortgage obligations
                 and stripped mortgage securities) and
                 asset-backed securities.
     ----------------------------------------------------------------------
</R>


                                      16




AMERICAN SKANDIA ANNUITIES PROSPECTUS

<R>
                                                             PORTFOLIO
                                                             ADVISOR/
      STYLE/ TYPE     INVESTMENT OBJECTIVES/POLICIES        SUB-ADVISOR
     ---------------------------------------------------------------------
     LARGE CAP     AST T. Rowe Price Large-Cap Growth     T. Rowe Price
     GROWTH        Portfolio (formerly AST                Associates, Inc.
                   AllianceBernstein Large-Cap Growth):
                   seeks long-term growth of capital by
                   investing predominantly in the equity
                   securities of a limited number of
                   large, carefully selected,
                   high-quality U.S. companies that are
                   judged likely to achieve superior
                   earnings growth. The Portfolio takes
                   a growth approach to investment
                   selection and normally invests at
                   least 80% of its net assets in the
                   common stocks of large cap companies.
     ---------------------------------------------------------------------
     INTERNATIONAL AST William Blair International        William Blair &
     EQUITY        Growth Portfolio: seeks long-term      Company, L.L.C.
                   capital appreciation. The Portfolio
                   invests primarily in stocks of large
                   and medium-sized companies located in
                   countries included in the Morgan
                   Stanley Capital International All
                   Country World Ex-U.S. Index. Under
                   normal market conditions, the
                   portfolio invests at least 80% of its
                   net assets in equity securities. The
                   Portfolio's assets normally will be
                   allocated among not fewer than six
                   different countries and will not
                   concentrate investments in any
                   particular industry. The Portfolio
                   seeks companies that historically
                   have had superior growth,
                   profitability and quality relative to
                   local markets and relative to
                   companies within the same industry
                   worldwide, and that are expected to
                   continue such performance.
     ---------------------------------------------------------------------
     INTERNATIONAL Evergreen VA International Equity:     Evergreen
     EQUITY        seeks long-term capital growth and     Investment
                   secondarily, modest income. The        Management
                   Portfolio normally invests 80% of its  Company, LLC
                   assets in equity securities issued by
                   established, quality, non-U.S.
                   companies located in countries with
                   developed markets and may purchase
                   across all market capitalizations.
                   The Portfolio normally invests at
                   least 65% of its assets in securities
                   of companies in at least three
                   different countries (other than the
                   U.S.). The Portfolio may also invest
                   in emerging markets. The Portfolio's
                   managers seek both growth and value
                   opportunities, and the Portfolio
                   intends to seek modest income from
                   dividends paid by its equity holdings.
     ---------------------------------------------------------------------
     SPECIALTY     Evergreen VA Omega: seeks long-term    Evergreen
                   capital growth. The Portfolio invests  Investment
                   primarily, and under normal            Management
                   conditions substantially all of its    Company, LLC
                   assets, in common stocks and
                   securities convertible into common
                   stocks of U.S. companies across all
                   market capitalizations. The
                   Portfolio's managers employ a growth
                   style of equity management. "Growth"
                   stocks are stocks of companies that
                   the Portfolio's managers believe have
                   anticipated earnings ranging from
                   steady to accelerated growth. The
                   Portfolio may invest up to 25% of its
                   assets in foreign securities.
     ---------------------------------------------------------------------
</R>

WHAT ARE THE FIXED ALLOCATIONS?
We offer Fixed Allocations of different durations during the accumulation
period. These "Fixed Allocations" earn a guaranteed fixed rate of interest for
a specified period of time, called the "Guarantee Period." In most states, we
offer Fixed Allocations with Guarantee Periods from 1 to 10 years. We may also
offer special purpose Fixed Allocations for use with certain optional
investment programs. We guarantee the fixed rate for the entire Guarantee
Period. However, if you withdraw or transfer Account Value before the end of
the Guarantee Period, we will adjust the value of your withdrawal or transfer
based on a formula, called a "Market Value Adjustment." The Market Value
Adjustment can either be positive or negative, depending on the movement of
applicable interest rates payable on Strips of the appropriate duration. Please
refer to the section entitled "How does the Market Value Adjustment Work?" for
a description of the formula along with examples of how it is calculated. You
may allocate Account Value to more than one Fixed Allocation at a time.
   Fixed Allocations may not be available in all states. Availability of Fixed
Allocations is subject to change and may differ by state and by the annuity
product you purchase. Please call American Skandia at 1-800-752-6342 to
determine availability of Fixed Allocations in your state and for your annuity
product.


                                      17




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Fees and Charges


<R>
The charges under the contracts are designed to cover, in the aggregate, our
direct and indirect costs of selling, administering and providing benefits
under the contracts. They are also designed, in the aggregate, to compensate us
for the risks of loss we assume pursuant to the contracts. If, as we expect,
the charges that we collect from the contracts exceed our total costs in
connection with the contracts, we will earn a profit. Otherwise we will incur a
loss. For example, American Skandia may make a profit on the Insurance Charge
if, over time, the actual costs of providing the guaranteed insurance
obligations under an Annuity are less than the amount we deduct for the
Insurance Charge. To the extent we make a profit on the Insurance Charge, such
profit may be used for any other corporate purpose, including payment of other
expenses that American Skandia incurs in promoting, distributing, issuing and
administering an Annuity and, in the case of Optimum Plus, Optimum and Optimum
Four to offset a portion of the costs associated with offering Credits which
are funded through American Skandia's general account.
   The rates of certain of our charges have been set with reference to
estimates of the amount of specific types of expenses or risks that we will
incu\r. In most cases, this prospectus identifies such expenses or risks in the
name of the charge; however, the fact that any charge bears the name of, or is
designed primarily to defray a particular expense or risk does not mean that
the amount we collect from that charge will never be more than the amount of
such expense or risk, nor does it mean that we may not also be compensated for
such expense or risk out of any other charges we are permitted to deduct by the
terms of the contract. A portion of the proceeds that American Skandia receives
from charges that apply to the Sub-accounts may include amounts based on market
appreciation of the Sub-account values including, for Optimum Plus, Optimum
Plus and Optimum Four, appreciation on amounts that represent any Credits.
</R>

WHAT ARE THE CONTRACT FEES AND CHARGES?

Contingent Deferred Sales Charge: We do not deduct a sales charge from Purchase
Payments you make to your Annuity. However, we may deduct a CDSC if you
surrender your Annuity or when you make a partial withdrawal. The CDSC
reimburses us for expenses related to sales and distribution of the Annuity,
including commissions, marketing materials and other promotional expenses. The
CDSC is calculated as a percentage of your Purchase Payment being surrendered
or withdrawn during the applicable Annuity Year. For purposes of calculating
the CDSC, we consider the year following the Issue Date of your Annuity as
Year 1. The amount of the CDSC decreases over time, measured from the Issue
Date of the Annuity. The CDSC percentages for Optimum, Optimum Four and Optimum
Plus are shown under "Summary of Contract Fees and Charges".
<R>
   With respect to a partial withdrawal, we calculate the CDSC by assuming that
any available free withdrawal amount is taken out first (see How Much Can I
Withdraw as a Free Withdrawal?). If the free withdrawal amount is not
sufficient, we then assume that withdrawals are taken from Purchase Payments
that have not been previously withdrawn, on a first-in, first-out basis, and
subsequently from any other Account Value in the Annuity.
   For purposes of calculating any applicable CDSC on a surrender, the Purchase
Payments being withdrawn may be greater than your remaining Account Value or
the amount of your withdrawal request. This is most likely to occur if you have
made prior partial withdrawals or if your Account Value has declined in value
due to negative market performance. In that scenario, we would determine the
CDSC amount as the applicable percentage of the Purchase Payments being
withdrawn, rather than as a percentage of the remaining Account Value or
withdrawal request. Thus, the CDSC would be greater than if it were calculated
as a percentage of remaining Account Value or withdrawal amount.
</R>
   We may waive any applicable CDSC under certain medically-related
circumstances or when taking a Minimum Distribution from an Annuity purchased
as a "qualified" investment. Free Withdrawals, Medically-Related Surrenders and
Minimum Distributions are each explained more fully in the section entitled
"Access to Your Account Value".

   Transfer Fee: Currently, you may make twenty (20) free transfers between
investment options each Annuity Year. We will charge $10.00 for each transfer
after the twentieth in each Annuity Year. We do not consider transfers made as
part of a Dollar Cost Averaging, Automatic Rebalancing or asset allocation
program when we count the twenty free transfers. All transfers made on the same
day will be treated as one (1) transfer. Renewals or transfers of Account Value
from a Fixed Allocation at the end of its Guarantee Period are not subject to
the Transfer Fee and are not counted toward the twenty free transfers. We may
reduce the number of free transfers allowable each Annuity Year (subject to a
minimum of eight) without charging a Transfer Fee unless you make use of
electronic means to transmit your transfer requests. We may eliminate the
Transfer Fee for transfer requests transmitted electronically or through other
means that reduce our processing costs. If enrolled in any program that does
not permit


                                      18




AMERICAN SKANDIA ANNUITIES PROSPECTUS

transfer requests to be transmitted electronically, the Transfer Fee will not
be waived.

   Annual Maintenance Fee: During the accumulation period we deduct an Annual
Maintenance Fee. The Annual Maintenance Fee is $35.00 or 2% of your Account
Value invested in the Sub-accounts, whichever is less. This fee will be
deducted annually on the anniversary of the Issue Date of your Annuity or, if
you surrender your Annuity during the Annuity Year, the fee is deducted at the
time of surrender. With respect to Optimum and Optimum Four, currently, the
Annual Maintenance Fee is only deducted if your Account Value is less than
$100,000 on the anniversary of the Issue Date or at the time of surrender. With
respect to Optimum Plus, we deduct the Annual Maintenance Fee regardless of
Account Value. We may increase the Annual Maintenance Fee. However, any
increase will only apply to Annuities issued after the date of the increase.

   Tax Charge: Several states and some municipalities charge premium taxes or
similar taxes on annuities that we are required to pay. The amount of tax will
vary from jurisdiction to jurisdiction and is subject to change. The tax charge
currently ranges up to 3 1/2% of your premium and is designed to approximate
the taxes that we are required to pay. We generally will deduct the charge at
the time the tax is imposed, but may also decide to deduct the charge from each
Purchase Payment at the time of a withdrawal or surrender of your Annuity or at
the time you elect to begin receiving annuity payments. We may assess a charge
against the Sub-accounts and the Fixed Allocations equal to any taxes which may
be imposed upon the separate accounts.
   We will pay company income taxes on the taxable corporate earnings created
by this separate account product. While we may consider company income taxes
when pricing our products, we do not currently include such income taxes in the
tax charges you pay under the contract. We will periodically review the issue
of charging for these taxes and may impose a charge in the future.
   In calculating our corporate income tax liability, we derive certain
corporate income tax benefits associated with the investment of company assets,
including separate account assets, which are treated as company assets under
applicable income tax law. These benefits reduce our overall corporate income
tax liability. Under current law, such benefits may include foreign tax credits
and corporate dividends received deductions. We do not pass these tax benefits
through to holders of the separate account annuity contracts because (i) the
contract owners are not the owners of the assets generating these benefits
under applicable income tax law and (ii) we do not currently include company
income taxes in the tax charges you pay under the contract.

   Insurance Charge: We deduct an Insurance Charge daily. The charge is
assessed against the daily assets allocated to the Sub-accounts and is equal to
the amount indicated under "Summary of Contract Fees and Charges". The
Insurance Charge is the combination of the Mortality & Expense Risk Charge and
the Administration Charge. The Insurance Charge is intended to compensate
American Skandia for providing the insurance benefits under each Annuity,
including each Annuity's basic Death Benefit that provides guaranteed benefits
to your beneficiaries even if the market declines and the risk that persons we
guarantee annuity payments to will live longer than our assumptions. The charge
also covers administrative costs associated with providing the Annuity
benefits, including preparation of the contract, confirmation statements,
annual account statements and annual reports, legal and accounting fees as well
as various related expenses. Finally, the charge covers the risk that our
assumptions about the mortality risks and expenses under each Annuity are
incorrect and that we have agreed not to increase these charges over time
despite our actual costs. We may increase the portion of the total Insurance
Charge that is deducted for administrative costs; however, any increase will
only apply to Annuities issued after the date of the increase.
   The Insurance Charge is not deducted against assets allocated to a Fixed
Allocation. However, the amount we credit to Fixed Allocations may also reflect
similar assumptions about the insurance guarantees provided under each Annuity.

   Distribution Charge: For Optimum and Optimum Plus, we deduct a Distribution
Charge daily. The charge is assessed against the average assets allocated to
the Sub-accounts and is equal to the amount indicated under "Summary of
Contract Fees and Charges" on an annual basis. The Distribution Charge is
intended to compensate us for a portion of our acquisition expenses under the
Annuity, including promotion and distribution of the Annuity and, with respect
to Optimum Plus, the costs associated with offering Credits which are funded
through American Skandia's general account. The Distribution Charge is deducted
against your Annuity's Account Value and any increases or decreases in your
Account Value based on market fluctuations of the Sub-accounts will affect the
charge.

   Optional Benefits for which we assess a charge: If you elect to purchase
certain optional benefits, we will deduct an additional charge on a daily basis
solely from your Account Value


                                      19




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Fees and Charges continued

allocated to the Sub-accounts. The additional charge is included in the daily
calculation of the Unit Price for each Sub-account. We may assess charges for
other optional benefits on a different basis. Please refer to the sections
entitled "Living Benefit Programs" and "Death Benefit" for a description of the
charge for each Optional Benefit.

   Fees and expenses incurred by the Portfolios: Each Portfolio incurs total
annual operating expenses comprised of an investment management fee, other
expenses and any distribution and service (12b-1) fees that may apply. These
fees and expenses are reflected daily by each Portfolio before it provides
American Skandia with the net asset value as of the close of business each day.
More detailed information about fees and expenses can be found in the
prospectuses for the Portfolios.

WHAT CHARGES APPLY TO THE FIXED ALLOCATIONS?

No specific fees or expenses are deducted when determining the rate we credit
to a Fixed Allocation. However, for some of the same reasons that we deduct the
Insurance Charge against Account Value allocated to the Sub-accounts, we also
take into consideration mortality, expense, administration, profit and other
factors in determining the interest rates we credit to Fixed Allocations. Any
CDSC or Tax Charge applies to amounts that are taken from the Sub-accounts or
the Fixed Allocations. A Market Value Adjustment may also apply to transfers,
certain withdrawals, surrender or annuitization from a Fixed Allocation.

WHAT CHARGES APPLY IF I CHOOSE AN ANNUITY PAYMENT OPTION?

If you select a fixed payment option, the amount of each fixed payment will
depend on the Account Value of your Annuity when you elected to annuitize.
There is no specific charge deducted from these payments; however, the amount
of each annuity payment reflects assumptions about our insurance expenses. If
you select a variable payment option that we may offer, then the amount of your
benefits will reflect changes in the value of your Annuity and will be subject
to charges that apply under the variable immediate annuity option. Also, a tax
charge may apply (see "Tax Charge" above). The variable annuity payment options
are described in detail in a separate prospectus, which is available upon
request and which will be provided to you if and when you elect one of the
variable annuity payment options. The separate prospectus sets forth the fees
and charges under the variable payment option, which may be higher than those
set forth in this prospectus.

EXCEPTIONS/REDUCTIONS TO FEES AND CHARGES

We may reduce or eliminate certain fees and charges or alter the manner in
which the particular fee or charge is deducted. For example, we may reduce the
amount of any CDSC or the length of time it applies, reduce or eliminate the
amount of the Annual Maintenance Fee or reduce the portion of the total
Insurance Charge that is deducted as an Administration Charge. Generally, these
types of changes will be based on a reduction to our sales, maintenance or
administrative expenses due to the nature of the individual or group purchasing
the Annuity. Some of the factors we might consider in making such a decision
are: (a) the size and type of group; (b) the number of Annuities purchased by
an Owner; (c) the amount of Purchase Payments or likelihood of additional
Purchase Payments; (d) whether an annuity is reinstated pursuant to our rules;
and/or (e) other transactions where sales, maintenance or administrative
expenses are likely to be reduced. We will not discriminate unfairly between
Annuity purchasers if and when we reduce any fees and charges.


                                      20




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Purchasing Your Annuity

WHAT ARE OUR REQUIREMENTS FOR PURCHASING ONE OF THE ANNUITIES?

<R>
Initial Purchase Payment: Unless we agree otherwise and subject to our rules,
you must make a minimum initial Purchase Payment as follows: $1,000 for
Optimum, $10,000 for Optimum Plus and Optimum Four. However, if you decide to
make payments under a systematic investment or an electronic funds transfer
program, we will accept a lower initial Purchase Payment provided that, within
the first Annuity Year, your subsequent Purchase Payments plus your initial
Purchase Payment total the minimum initial Purchase Payment amount required for
the Annuity purchased.
</R>
   Where allowed by law, we must approve any initial and additional Purchase
Payments of $1,000,000 or more. We may apply certain limitations and/or
restrictions on an Annuity as a condition of our acceptance, including limiting
the liquidity features or the Death Benefit protection provided under an
Annuity, limiting the right to make additional Purchase Payments, changing the
number of transfers allowable under an Annuity or restricting the Sub-accounts
or Fixed Allocations that are available. Other limitations and/or restrictions
may apply.
   Except as noted below, Purchase Payments must be submitted by check drawn on
a U.S. bank, in U.S. dollars, and made payable to American Skandia. Purchase
Payments may also be submitted via 1035 exchange or direct transfer of funds.
Under certain circumstances, Purchase Payments may be transmitted to American
Skandia via wiring funds through your Financial Professional's broker-dealer
firm. Additional Purchase Payments may also be applied to your Annuity under an
electronic funds transfer arrangement where you authorize us to deduct money
directly from your bank account. We may reject any payment if it is received in
an unacceptable form. Our acceptance of a check is subject to our ability to
collect funds.
<R>
   Age Restrictions: Unless we agree otherwise and subject to our rules, the
Owner (or Annuitant if entity owned) must not be older than a maximum issue age
as of the Issue Date of the Annuity as follows: age 80 for Optimum, age 75 for
Optimum Plus and age 85 for Optimum Four. If an Annuity is owned jointly, the
oldest of the Owners must not be older than the maximum issue age on the Issue
Date. You should consider your need to access your Account Value and whether
the Annuity's liquidity features will satisfy that need. If you take a
distribution prior to age 59 1/2, you may be subject to a 10% penalty in
addition to ordinary income taxes on any gain. The availability and level of
protection of certain optional benefits may vary based on the age of the Owner
on the Issue Date of the Annuity or the date of the Owner's death.
</R>

   Owner, Annuitant and Beneficiary Designations: We will ask you to name the
Owner(s), Annuitant and one or more Beneficiaries for your Annuity.
.   Owner: The Owner(s) holds all rights under the Annuity. You may name up to
    two Owners in which case all ownership rights are held jointly. Generally,
    joint owners are required to act jointly; however, if each owner provides
    us with an instruction that we find acceptable, we will permit each owner
    to act separately. All information and documents that we are required to
    send you will be sent to the first named owner. This Annuity does not
    provide a right of survivorship. Refer to the Glossary of Terms for a
    complete description of the term "Owner."
.   Annuitant: The Annuitant is the person we agree to make annuity payments to
    and upon whose life we continue to make such payments. You must name an
    Annuitant who is a natural person. We do not accept a designation of joint
    Annuitants during the accumulation period. Where allowed by law, you may
    name one or more Contingent Annuitants. A Contingent Annuitant will become
    the Annuitant if the Annuitant dies before the Annuity Date. Please refer
    to the discussion of "Considerations for Contingent Annuitants" in the Tax
    Considerations section of the Prospectus.
.   Beneficiary: The Beneficiary is the person(s) or entity you name to receive
    the Death Benefit. Your beneficiary designation should be the exact name of
    your beneficiary, not only a reference to the beneficiary's relationship to
    you. If you use a designation of "surviving spouse," we will pay the Death
    Benefit to the individual that is your spouse at the time of your death (as
    defined under the federal tax laws and regulations). If no beneficiary is
    named the Death Benefit will be paid to you or your estate.
   Your right to make certain designations may be limited if your Annuity is to
be used as an IRA or other "qualified" investment that is given beneficial tax
treatment under the Code. You should seek competent tax advice on the income,
estate and gift tax implications of your designations.


                                      21




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Managing Your Annuity


MAY I CHANGE THE OWNER, ANNUITANT AND BENEFICIARY DESIGNATIONS?

You may change the Owner, Annuitant and Beneficiary designations by sending us
a request in writing. Upon an ownership change, any automated investment or
withdrawal programs will be canceled. The new owner must submit the applicable
program enrollment if they wish to participate in such a program. Where allowed
by law, such changes will be subject to our acceptance. Some of the changes we
will not accept include, but are not limited to:
.   a new Owner subsequent to the death of the Owner or the first of any joint
    Owners to die, except where a spouse-Beneficiary has become the Owner as a
    result of an Owner's death;
.   a new Annuitant subsequent to the Annuity Date;
.   for "non-qualified" investments, a new Annuitant prior to the Annuity Date
    if the Annuity is owned by an entity; and
.   a change in Beneficiary if the Owner had previously made the designation
    irrevocable.

There may be restrictions on designation changes when you have elected certain
optional benefits.

SPOUSAL OWNERS/SPOUSAL BENEFICIARIES
If an Annuity is co-owned by spouses, we will assume that the sole primary
Beneficiary is the surviving spouse that was named as the co-owner unless you
elect an alternative Beneficiary designation. Unless you elect an alternative
Beneficiary designation, upon the death of either spousal Owner, the surviving
spouse may elect to assume ownership of the Annuity instead of taking the Death
Benefit payment. The Death Benefit that would have been payable will be the new
Account Value of the Annuity as of the date of due proof of death and any
required proof of a spousal relationship. As of the date the assumption is
effective, the surviving spouse will have all the rights and benefits that
would be available under the Annuity to a new purchaser of the same attained
age. For the Spousal Lifetime Five Income Benefit, the eligible surviving
spouse will also be able to assume the benefit with the Annuity. See the
description of this benefit in the "Living Benefit Programs" section of this
Prospectus. For purposes of determining any future Death Benefit for the
beneficiary of the surviving spouse, the new Account Value will be considered
as the initial Purchase Payment. No CDSC will apply to the new Account Value.
However, any additional Purchase Payments applied after the date the assumption
is effective will be subject to all provisions of the Annuity, including the
CDSC when applicable.

CONTINGENT ANNUITANT
If an Annuity is owned by an entity and the entity has named a Contingent
Annuitant, no Death Benefit is payable upon the death of the Annuitant.
However, the Account Value of the Annuity as of the date of due proof of death
of the Annuitant will reflect the amount that would have been payable had a
Death Benefit been paid. The Annuity is eligible to have a Contingent Annuitant
designation if the entity which owns the annuity is a plan described in
Internal Revenue Code Section 72(s)(5)(A)(i) or an entity described in Code
section 72(u)(1), or any successor Code sections.

MAY I RETURN MY ANNUITY IF I CHANGE MY MIND?

<R>
If after purchasing your Annuity you change your mind and decide that you do
not want it, you may return it to us within a certain period of time known as a
right to cancel period. This is often referred to as a "free-look." Depending
on the state in which you purchased your Annuity and, in some states, if you
purchased the Annuity as a replacement for a prior contract, the right to
cancel period may be ten (10) days, or longer, measured from the time that you
received your Annuity. If you return your Annuity during the applicable period,
we will refund your current Account Value plus any tax charge deducted, less
any applicable federal and state income tax withholding and depending on your
state's requirements, any applicable insurance charges deducted. The amount
returned to you may be higher or lower than the Purchase Payment(s) applied
during the right to cancel period. Where required by law, we will return your
Purchase Payment(s), or the greater of your current Account Value and the
amount of your Purchase Payment(s) applied during the right to cancel period
less any applicable federal and state income tax withholding. With respect to
Optimum Plus, if you return your Annuity, we will not return any Credits we
applied to your Annuity based on your Purchase Payments.
</R>

MAY I MAKE ADDITIONAL PURCHASE PAYMENTS?

<R>
Unless we agree otherwise and subject to our rules, the minimum amount that we
accept as an additional Purchase Payment is $100 unless you participate in
American Skandia's Systematic Investment Plan or a periodic Purchase Payment
program. Purchase Payments made while you participate in an asset allocation
program will be allocated in accordance with such program. Additional Purchase
Payments may be paid at any time before the Annuity Date.
</R>


                                      22




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Managing Your Account Value


HOW AND WHEN ARE PURCHASE PAYMENTS INVESTED?
(See "Valuing Your Investment" for a description of our procedure for pricing
initial and subsequent Purchase Payments.)

   Initial Purchase Payment: Once we accept your application, we invest your
Purchase Payment in your Annuity according to your instructions for allocating
your Account Value. The Purchase Payment is your initial Purchase Payment minus
any tax charges that may apply. You can allocate Account Value to one or more
Sub-accounts or Fixed Allocations. Investment restrictions will apply if you
elect certain optional benefits.

   Subsequent Purchase Payments: Unless you participate in an asset allocation
program, or unless you have provided us with other specific allocation
instructions for one, more than one, or all subsequent Purchase Payments, we
will allocate any additional Purchase Payments you make according to your
initial Purchase Payment allocation instructions. If you so instruct us, we
will allocate subsequent Purchase Payments according to any new allocation
instructions. Unless you tell us otherwise, Purchase Payments made while you
participate in an asset allocation program will be allocated in accordance with
such program.

HOW DO I RECEIVE A LOYALTY CREDIT UNDER THE OPTIMUM AND OPTIMUM FOUR ANNUITIES?
We apply a Loyalty Credit to your Annuity's Account Value at the end of your
fifth Annuity Year ("fifth Annuity Anniversary"). With respect to Optimum, for
annuities issued on or after February 13, 2006 (subject to state availability),
the Loyalty Credit is equal to 0.50% of total Purchase Payments made during the
first four Annuity Years less the cumulative amount of withdrawals made
(including the deduction of any CDSC amounts) through the fifth Annuity
Anniversary. With respect to Optimum Four, for annuities issued on or after
June 20, 2005 (subject to state availability), the Loyalty Credit is equal to
2.25% of total Purchase Payments made during the first four Annuity Years less
the cumulative amount of withdrawals made (including the deduction of any CDSC
amounts) through the fifth Annuity Anniversary. For Optimum Four Annuities
issued on or after February 13, 2006 (subject to state availability), the
Loyalty Credit is equal to 2.75% of total Purchase Payments made during the
first four Annuity Years less the cumulative amount of withdrawals made
(including the deduction of any CDSC amounts) through the fifth Annuity
Anniversary.
<R>
   If the total Purchase Payments made during the first four Annuity Years is
less than the cumulative amount of withdrawals made on or before the fifth
Annuity Anniversary, no Loyalty Credit will be applied to your Annuity. Also,
no Loyalty Credit will be applied to your Annuity if your Account Value is zero
on the fifth Annuity Anniversary. This would include any situation where the
Annuity is still in force due to the fact that payments are being made under an
optional benefit such as Lifetime Five, Spousal Lifetime Five or the Guaranteed
Minimum Withdrawal Benefit. In addition, no Loyalty Credit will be applied to
your Annuity if before the fifth Annuity Anniversary: (i) you have surrendered
your Annuity; (ii) you have annuitized your Annuity; (iii) your Beneficiary has
elected our Beneficiary Continuation Option; or (iv) we have received due proof
of your death (and there has been no spousal continuation election made). If
your spouse continues the contract under our spousal continuation option, we
will apply the Loyalty Credit to your Annuity only on the fifth Annuity
Anniversary measured from the date that we originally issued you the Annuity.
Since the Loyalty Credit is applied to the Account Value only, any guarantees
that are not based on Account Value will not reflect the Loyalty Credit.
Similarly, guarantees that are made against a loss in Account Value will not be
triggered in certain very limited circumstances where they otherwise would have
been, had no Loyalty Credit been applied to the Account Value.
</R>

HOW ARE LOYALTY CREDITS APPLIED TO MY ACCOUNT VALUE UNDER THE OPTIMUM AND
OPTIMUM FOUR ANNUITIES?
Any Loyalty Credit that is allocated to your Account Value on the fifth Annuity
Anniversary will be allocated to the Fixed Allocations and Sub-accounts in the
same percentages as Purchase Payments are then being allocated to your Annuity.

EXAMPLE OF APPLYING THE LOYALTY CREDIT WITH RESPECT TO OPTIMUM
Assume you make an initial Purchase Payment of $10,000 and your Annuity is
issued on or after February 13, 2006. During Annuity Year four (i.e., prior to
the fourth Annuity Anniversary) you make an additional $10,000 Purchase
Payment. During the early part of Annuity Year five (i.e., prior to the fifth
Annuity Anniversary) you make a $10,000 Purchase Payment and later in the year
make a withdrawal of $5,000. The Loyalty Credit that we will apply to your
Annuity on the fifth Annuity Anniversary is, subject to state availability,
equal to 0.50% of $15,000 (this represents the $20,000 of Purchase Payments
made during the first four Annuity Years minus the $5,000 withdrawal made in
the fifth Annuity Year. The computation disregards the additional $10,000
Purchase Payment made in the fifth Annuity Year.) Therefore, the Loyalty Credit
amount would be equal to $75.00.


                                      24




AMERICAN SKANDIA ANNUITIES PROSPECTUS


EXAMPLE OF APPLYING THE LOYALTY CREDIT WITH RESPECT TO OPTIMUM FOUR
Assume you make an initial Purchase Payment of $10,000 and your Annuity is
issued on or after February 13, 2006. During Annuity Year four (i.e., prior to
the fourth Annuity Anniversary) you make an additional $10,000 Purchase
Payment. During the early part of Annuity Year five (i.e., prior to the fifth
Annuity Anniversary) you make a $10,000 Purchase Payment and later in the year
make a withdrawal of $5,000. The Loyalty Credit that we will apply to your
Annuity on the fifth Annuity Anniversary is, subject to state availability,
equal to 2.75% of $15,000 (this represents the $20,000 of Purchase Payments
made during the first four Annuity Years minus the $5,000 withdrawal made in
the fifth Annuity Year. The computation disregards the additional $10,000
Purchase Payment made in the fifth Annuity Year.) Therefore, the Loyalty Credit
amount would be equal to $412.50.

HOW DO I RECEIVE CREDITS UNDER THE OPTIMUM PLUS ANNUITY?
We apply a "Credit" to your Annuity's Account Value each time you make a
Purchase Payment during the first six (6) Annuity Years. The amount of the
Credit is payable from our general account. The amount of the Credit depends on
the Annuity Year in which the Purchase Payment(s) is made, according to the
table below:
   For annuities issued prior to February 13, 2006:

                              ANNUITY YEAR CREDIT
                              -------------------
                                   1       6.00%
                                   2       5.00%
                                   3       4.00%
                                   4       3.00%
                                   5       2.00%
                                   6       1.00%
                                   7+      0.00%
                              -------------------

   For annuities issued on or after February 13, 2006 (subject to state
availability):

                              ANNUITY YEAR CREDIT
                              -------------------
                                   1       6.50%
                                   2       5.00%
                                   3       4.00%
                                   4       3.00%
                                   5       2.00%
                                   6       1.00%
                                   7+      0.00%
                              -------------------

CREDITS APPLIED TO PURCHASE PAYMENTS FOR DESIGNATED CLASS OF ANNUITY OWNER
Prior to May 1, 2004, where allowed by state law, Annuities could be purchased
by a member of the class defined below, with a different table of Credits. The
Credit applied to all Purchase Payments on such Annuities is as follows based
on the Annuity Year in which the Purchase Payment was made: Year 1 - 9.0%; Year
2 - 9.0%; Year 3 - 8.5%; Year 4 - 8.0%; Year 5 - 7.0%; Year 6 - 6.0%; Year 7 -
5.0%; Year 8 - 4.0%; Year 9 - 3.0%; Year 10 - 2%; Year 11+ - 0.0%.
   The designated class of Annuity Owners included: (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, custodian-ship, 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, a Prudential
Financial Company; (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) the child(ren) or other legal dependent
under the age of 21 of any such person noted in (b) through (h); and (j) the
siblings of any such persons noted in (b) through (h) above.
   All other terms and conditions of the Annuity apply to Owners in the
designated class.

HOW ARE CREDITS APPLIED TO ACCOUNT VALUE UNDER THE OPTIMUM PLUS ANNUITY?
Each Credit is allocated to your Account Value at the time the Purchase Payment
is applied to your Account Value. The amount of the Credit is allocated to the
investment options in the same ratio as the applicable Purchase Payment is
applied.

EXAMPLES OF APPLYING CREDITS

Initial Purchase Payment
Assume you make an initial Purchase Payment of $10,000 and your Annuity is
issued on or after February 13, 2006. We would apply a 6.5% Credit to your
Purchase Payment and allocate the amount of the Credit ($650 = $10,000 X .065)
to your Account Value in the proportion that your Purchase Payment is allocated.


                                      25




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Managing Your Account Value continued


Additional Purchase Payment in Annuity Year 2
Assume that you make an additional Purchase Payment of $5,000. We would apply a
5.0% Credit to your Purchase Payment and allocate the amount of the Credit
($250 = $5,000 X .05) to your Account Value.

Additional Purchase Payment in Annuity Year 6
Assume that you make an additional Purchase Payment of $15,000. We would apply
a 1.0% Credit to your Purchase Payment and allocate the amount of the Credit
($150 = $15,000 X .01) to your Account Value.

<R>
 The amount of any Credits applied to your Optimum Plus Annuity Account Value
 can be taken back by American Skandia under certain circumstances:
.  any Credits applied to your Account Value on Purchase Payments made within
   the 12 months before the Owner's (or Annuitant's if entity owned) date of
   death will be taken back;
.  the amount available under the medically-related surrender portion of the
   Annuity will not include the amount of any Credits payable on Purchase
   Payments made within 12 months prior to the date of a request under the
   medically-related surrender provision; and
</R>
.  if you elect to "free-look" your Annuity, the amount returned to you will
   not include the amount of any Credits.
<R>
   If you qualify for the 6.5% Optimum Plus in the first year (for annuities
 issued on or after February 13, 2006, subject to state availability), only 6%
 of that amount will be taken back in connection with the first two bullets
 described above. However, we will take back the entire 6.5% if you "free-look"
 your Annuity.
   The Account Value may be substantially reduced if American Skandia takes
 back the Credit amount under these circumstances. The amount we take back will
 equal the Optimum Plus amount, without adjustment up or down for investment
 performance. Therefore, any gain on the Optimum Plus amount will not be taken
 back. But if there was a loss on the Optimum Plus amount, the amount we take
 back will still equal the amount of the Optimum Plus amount. We do not deduct
 a CDSC in any situation where we take back the Credit amount. During the first
 10 Annuity Years, the total asset-based charges on this Annuity (including the
 Insurance Charge and the Distribution Charge) are higher than many of our
 other annuities, including other annuities we offer that apply credits to
 purchase payments.
</R>

GENERAL INFORMATION ABOUT CREDITS
.   We do not consider Credits to be "investment in the contract" for income
    tax purposes.
.   You may not withdraw the amount of any Credits under the Free Withdrawal
    provision. The Free Withdrawal provision only applies to withdrawals of
    Purchase Payments.

ARE THERE RESTRICTIONS OR CHARGES ON TRANSFERS BETWEEN INVESTMENT OPTIONS?
During the accumulation period you may transfer Account Value between
investment options subject to the restrictions outlined below. Transfers are
not subject to taxation on any gain. We may require a minimum of $500 in each
Sub-account you allocate Account Value to at the time of any allocation or
transfer. If you request a transfer and, as a result of the transfer, there
would be less than $500 in the Sub-account, we may transfer the remaining
Account Value in the Sub-account pro- rata to the other investment options to
which you transferred.
   We may impose specific restrictions on financial transactions (including
transfer requests) for certain Portfolios based on the Portfolio's investment
and/or transfer restrictions. We may do so to conform to any present or future
restriction that is imposed by any portfolio available under an Annuity.
   Currently, we charge $10.00 for each transfer after the twentieth
(20/th/) transfer in each Annuity Year. Transfers made as part of a Dollar Cost
Averaging, Automatic Rebalancing or asset allocation program do not count
toward the twenty free transfer limit. Renewals or transfers of Account Value
from a Fixed Allocation at the end of its Guarantee Period are not subject to
the transfer charge. We may reduce the number of free transfers allowable each
Annuity Year (subject to a minimum of eight) without charging a Transfer Fee.
We may also increase the Transfer Fee that we charge to $20.00 for each
transfer after the number of free transfers has been used up. We may eliminate
the Transfer Fee for transfer requests transmitted electronically or through
other means that reduce our processing costs. If enrolled in any program that
does not permit transfer requests to be transmitted electronically, the
Transfer Fee will not be waived.
   Once you have made 20 transfers among the Sub-accounts during an Annuity
Year, we will accept any additional transfer request during that year only if
the request is submitted to us in writing with an original signature and
otherwise is in good order. For purposes of this 20 transfer limit, we (i) do
not view a facsimile transmission as a "writing", (ii) will treat multiple
transfer requests submitted on the same business day as a single transfer, and
(iii) do not count any transfer that solely involves


                                      26




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Sub-accounts corresponding to the AST Money Market Portfolio, or any transfer
that involves one of our systematic programs, such as asset allocation and
automated withdrawals.
   Frequent transfers among Sub-accounts in response to short-term fluctuations
in markets, sometimes called "market timing," can make it very difficult for a
Portfolio manager to manage a Portfolio's investments. Frequent transfers may
cause the Portfolio to hold more cash than otherwise necessary, disrupt
management strategies, increase transaction costs, or affect performance. Each
Annuity offers Sub-accounts designed for Owners who wish to engage in frequent
transfers (i.e., one or more of the Sub-accounts corresponding to the AST Money
Market Portfolio), and we encourage Owners seeking frequent transfers to
utilize those Sub-accounts.
   In light of the risks posed to Owners and other investors by frequent
transfers, we reserve the right to limit the number of transfers in any Annuity
Year for all existing or new Owners and to take the other actions discussed
below. We also reserve the right to limit the number of transfers in any
Annuity Year or to refuse any transfer request for an Owner or certain Owners
if: (a) we believe that excessive transfer activity (as we define it) or a
specific transfer request or group of transfer requests may have a detrimental
effect on Unit Values or the share prices of the Portfolios; or (b) we are
informed by a Portfolio (e.g., by the Portfolio's portfolio manager) that the
purchase or redemption of shares in the Portfolio must be restricted because
the Portfolio believes the transfer activity to which such purchase and
redemption relates would have a detrimental effect on the share prices of the
affected Portfolio. Without limiting the above, the most likely scenario where
either of the above could occur would be if the aggregate amount of a trade or
trades represented a relatively large proportion of the total assets of a
particular Portfolio. In furtherance of our general authority to restrict
transfers as described above, and without limiting other actions we may take in
the future, we have adopted the following specific restrictions:

.   With respect to each Sub-account (other than the AST Money Market
    Sub-account), we track amounts exceeding a certain dollar threshold that
    were transferred into the Sub-account. If you transfer such amount into a
    particular Sub-account, and within 30 calendar days thereafter transfer
    (the "Transfer Out") all or a portion of that amount into another
    Sub-account, then upon the Transfer Out, the former Sub-account becomes
    restricted (the "Restricted Sub-account"). Specifically, we will not permit
    subsequent transfers into the Restricted Sub-account for 90 calendar days
    after the Transfer Out if the Restricted Sub-account invests in a
    non-international Portfolio, or 180 calendar days after the Transfer Out if
    the Restricted Sub-account invests in an international Portfolio. For
    purposes of this rule, we (i) do not count transfers made in connection
    with one of our systematic programs, such as asset allocation and
    auto-mated withdrawals; (ii) do not count any transfer that solely involves
    Sub-accounts corresponding to the AST Money Market Portfolio; and (iii) do
    not categorize as a transfer the first transfer that you make after the
    Issue Date, if you make that transfer within 30 calendar days after the
    Issue Date. Even if an amount becomes restricted under the foregoing rules,
    you are still free to redeem the amount from your Annuity at any time.
.   We reserve the right to effect exchanges on a delayed basis for all
    contracts. That is, we may price an exchange involving the Sub-accounts on
    the Valuation Day subsequent to the Valuation Day on which the exchange
    request was received. Before implementing such a practice, we would issue a
    separate written notice to Owners that explains the practice in detail.

If we deny one or more transfer requests under the foregoing rules, we will
inform you or your Financial Professional promptly of the circumstances
concerning the denial.
<R>
   Contract owners in New York who purchased their contracts prior to March 15,
2004 are not subject to the specific restrictions outlined in bulleted
paragraphs immediately above. In addition, there are contract owners of
different variable annuity contracts that are funded through the same Separate
Account that are not subject to the above-referenced transfer restrictions and,
therefore, might make more numerous and frequent transfers than contract owners
who are subject to such limitations. Finally, there are contract owners of
other variable annuity contracts or variable life contracts that are issued by
American Skandia as well as other insurance companies that have the same
underlying mutual fund portfolios available to them. Since some contract owners
are not subject to the same transfer restrictions, unfavorable consequences
associated with such frequent trading within the underlying mutual fund (e.g.,
greater portfolio turnover, higher transaction costs, or performance or tax
issues) may affect all contract owners. Similarly, while contracts managed by a
Financial Professional or third party investment advisor are subject to the
restrictions on transfers between investment options that are discussed above,
if the advisor manages a number of contracts in the same fashion unfavorable
consequences may be associated
</R>


                                      27




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Managing Your Account Value continued

<R>
with management activity since it may involve the movement of a substantial
portion of an underlying mutual fund's assets which may affect all contract
owners invested in the affected options. Apart from jurisdiction- specific and
contract differences in transfer restrictions, we will apply these rules
uniformly (including contracts managed by a Financial Professional or third
party investment advisor), and will not waive a transfer restriction for any
contract owner.
</R>

   Although our transfer restrictions are designed to prevent excessive
transfers, they are not capable of preventing every potential occurrence of
excessive transfer activity.

DO YOU OFFER DOLLAR COST AVERAGING?
Yes. We offer Dollar Cost Averaging during the accumulation period. Dollar Cost
Averaging allows you to systematically transfer an amount periodically from one
investment option to one or more other investment options. You can choose to
transfer earnings only, principal plus earnings or a flat dollar amount. You
may elect a Dollar Cost Averaging program that transfers amounts monthly,
quarterly, semi-annually, or annually from Sub-accounts, or a program that
transfers amounts monthly from Fixed Allocations. By investing amounts on a
regular basis instead of investing the total amount at one time, Dollar Cost
Averaging may decrease the effect of market fluctuation on the investment of
your Purchase Payment. This may result in a lower average cost of units over
time. However, there is no guarantee that Dollar Cost Averaging will result in
a profit or protect against a loss in a declining market. There is no minimum
Account Value required to enroll in a Dollar Cost Averaging program and we do
not deduct a charge for participating in a Dollar Cost Averaging program.
   You can Dollar Cost Average from Sub-accounts or Fixed Allocations. Dollar
Cost Averaging from Fixed Allocations is subject to a number of rules that
include, but are not limited to the following:
.   You may only use Fixed Allocations with Guarantee Periods of 2 or 3 years.
.   You may only Dollar Cost Average earnings or principal plus earnings. If
    transferring principal plus earnings, the program must be designed to last
    the entire Guarantee Period for the Fixed Allocation.
.   Dollar Cost Averaging transfers from Fixed Allocations are not subject to a
    Market Value Adjustment.
   NOTE: When a Dollar Cost Averaging program is established from a Fixed
Allocation, the fixed rate of interest we credit to your Account Value is
applied to a declining balance due to the transfers of Account Value to the
Sub-accounts during the Guarantee Period. This will reduce the effective rate
of return on the Fixed Allocation over the Guarantee Period.
   The Dollar Cost Averaging program is not available if you have elected an
automatic rebalancing program or an asset allocation program. Dollar Cost
Averaging from Fixed Allocations is not available if you elect the Guaranteed
Return Option Plus or the Guaranteed Return Option.

    American Skandia may offer Fixed Allocations with Guarantee Periods of 6
 months or 12 months exclusively for use with a Dollar Cost Averaging program
 ("DCA Fixed Allocations"). DCA Fixed Allocations are designed to automatically
 transfer Account Value in either 6 or 12 payments under a Dollar Cost
 Averaging program. Dollar Cost Averaging transfers will begin on the day
 following the date the DCA Fixed Allocation is established and each month
 following until the entire principal amount plus earnings is transferred. DCA
 Fixed Allocations may only be established with your initial Purchase Payment
 or additional Purchase Payments. You may not transfer existing Account Value
 to a DCA Fixed Allocation. We reserve the right to terminate offering these
 special purpose Fixed Allocations at any time.
    Account Value allocated to the DCA Fixed Allocation will be transferred to
 the Sub-accounts you choose under the Dollar Cost Averaging program. If you
 terminate the Dollar Cost Averaging program before the entire principal amount
 plus earnings has been transferred to the Sub-account(s), you must transfer
 all remaining Account Value to any other investment option. Unless you provide
 alternate instructions at the time you terminate the Dollar Cost Averaging
 program, Account Value will be transferred to the AST Money Market
 Sub-account. Transfers from Fixed Allocations as part of a Dollar Cost
 Averaging program are not subject to a Market Value Adjustment. However, a
 Market Value Adjustment will apply if you terminate the Dollar Cost Averaging
 program before the entire principal amount plus earnings has been transferred
 to the Sub-account(s).

DO YOU OFFER ANY AUTOMATIC REBALANCING PROGRAMS?
Yes. During the accumulation period, we offer Automatic Rebalancing among the
Sub-accounts you choose. You can choose to have your Account Value rebalanced
monthly, quarterly,


                                      28




AMERICAN SKANDIA ANNUITIES PROSPECTUS

semi-annually, or annually. On the appropriate date, the Sub-accounts you chose
are rebalanced to the allocation percentages you requested. With Automatic
Rebalancing, we transfer the appropriate amount from the "overweighted"
Sub-accounts to the "underweighted" Sub-accounts to return your allocations to
the percentages you request. For example, over time the performance of the
Sub-accounts will differ, causing your percentage allocations to shift.
   Any transfer to or from any Sub-account that is not part of your Automatic
Rebalancing program, will be made; however, that Sub-account will not become
part of your rebalancing program unless we receive instructions from you
indicating that you would like such option to become part of the program.
   There is no minimum Account Value required to enroll in Automatic
Rebalancing. All rebalancing transfers as part of an Automatic Rebalancing
program are not included when counting the number of transfers each year toward
the maximum number of free transfers. We do not deduct a charge for
participating in an Automatic Rebalancing program. Participation in the
Automatic Rebalancing program may be restricted if you are enrolled in certain
other optional programs. Sub-accounts that are part of a Systematic Withdrawal
program or Dollar Cost Averaging program will be excluded from an Automatic
Rebalancing program.

ARE ANY ASSET ALLOCATION PROGRAMS AVAILABLE?
Yes. Certain "static asset allocation programs" are available for use with the
Annuity. These programs are considered static because once you have selected a
model portfolio, the Sub- accounts and the percentage of contract value
allocated to each Sub-account cannot be changed without your consent. The
programs are available at no additional charge. Under these programs, the
Sub-account for each asset class in each model portfolio is designated for you.
Under the programs, the values in the Sub-accounts will be rebalanced
periodically back to the indicated percentages for the applicable asset class
within the model portfolio that you have selected. For more information on the
asset allocation programs see the Appendix entitled "Additional Information on
the Asset Allocation Programs."
<R>
   Asset allocation is a sophisticated method of diversification, which
allocates assets among asset classes in order to manage investment risk and
enhance returns over the long term. However, asset allocation does not
guarantee a profit or protect against a loss. No personalized investment advice
is provided in connection with the asset allocation programs and you should not
rely on these programs as providing individualized investment recommendations
to you. The asset allocation programs do not guarantee better investment
results. We reserve the right to terminate or change the asset allocation
programs at any time. You should consult with your Financial Professional
before electing any asset allocation program.
</R>

DO YOU OFFER PROGRAMS DESIGNED TO GUARANTEE A "RETURN OF PREMIUM" AT A FUTURE
DATE?
<R>
Yes. We offer two different programs for investors who wish to invest in the
Sub-accounts but also wish to protect their principal, as of a specific date in
the future. They are the Balanced Investment Program and the Guaranteed Return
Option Plus/SM/. (GRO Plus/SM/). GRO Plus/SM/ is not available in all states.
In some states where GRO Plus is not available we offer the Guaranteed Return
Option (GRO).) Both the Balanced Investment Program and GRO Plus allow you to
allocate a portion of your Account Value to the available Sub-accounts while
ensuring that your Account Value will at least equal your contributions
adjusted for withdrawals and transfers on a specified date. Under GRO Plus,
Account Value is allocated to and maintained in Fixed Allocations to the extent
we, in our sole discretion, deem it is necessary to support our guarantee under
the program. This differs from the Balanced Investment Program where a set
amount is allocated to a Fixed Allocation regardless of the performance of the
underlying Sub-accounts or the interest rate environment after the amount is
allocated to a Fixed Allocation. Generally, more of your Account Value will be
allocated to the Sub-accounts under the GRO Plus program than under the
Balanced Investment Program (although in periods of poor market performance,
low interest rates and/or as the option progresses to its maturity date, this
may not be the case). You may not want to use either of these programs if you
expect to begin taking annuity payments before the program would be completed.
In addition, as with most return of premium programs, amounts that are
available to allocate to the Sub-accounts may be substantially less than they
would be if you did not elect a return of premium program. This means that, if
investment experience in the Sub-accounts were positive, your Account Value
would grow at a slower rate than if you did not elect a return of premium
program and allocated all of your Account Value to the Sub-accounts.
</R>

BALANCED INVESTMENT PROGRAM
We offer a balanced investment program where a portion of your Account Value is
allocated to a Fixed Allocation and the remaining Account Value is allocated to
the Sub-accounts that you select.


                                      29




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Managing Your Account Value continued

When you enroll in the Balanced Investment Program, you choose the duration
that you wish the program to last. This determines the duration of the
Guarantee Period for the Fixed Allocation. Based on the fixed rate for the
Guarantee Period chosen, we calculate the portion of your Account Value that
must be allocated to the Fixed Allocation to grow to a specific "principal
amount" (such as your initial Purchase Payment). We determine the amount based
on the rates then in effect for the Guarantee Period you choose. If you
continue the program until the end of the Guarantee Period and make no
withdrawals or transfers, at the end of the Guarantee Period, the Fixed
Allocation will have grown to equal the "principal amount". Withdrawals or
transfers from the Fixed Allocation before the end of the Guarantee Period will
terminate the program and may be subject to a Market Value Adjustment. You can
transfer the Account Value that is not allocated to the Fixed Allocation
between any of the Sub-accounts available under your Annuity. Account Value you
allocate to the Sub-accounts is subject to market fluctuations and may increase
or decrease in value. We do not deduct a charge for participating in the
Balanced Investment Program.

   EXAMPLE
   Assume you invest $100,000. You choose a 10-year program and allocate a
   portion of your Account Value to a Fixed Allocation with a 10-year Guarantee
   Period. The rate for the 10-year Guarantee Period is 2.50%*. Based on the
   fixed interest rate for the Guarantee Period chosen, the factor is 0.781198
   for determining how much of your Account Value will be allocated to the
   Fixed Allocation. That means that $78,120 will be allocated to the Fixed
   Allocation and the remaining Account Value ($21,880) will be allocated to
   the Sub-accounts. Assuming that you do not make any withdrawals or transfers
   from the Fixed Allocation, it will grow to $100,000 at the end of the
   Guarantee Period. Of course we cannot predict the value of the remaining
   Account Value that was allocated to the Sub-accounts.
   The Guaranteed Return Option Plus (GRO Plus) guarantees that, after a
seven-year period following commencement of the program ("maturity date") and
on each anniversary of the maturity date thereafter, your Account Value will
not be less than the Account Value on the effective date of the program. The
program also offers you the option to elect a second, enhanced guarantee amount
at a higher Account Value subject to a separate maturity period (and its
anniversaries). The GRO Plus program may be appropriate if you wish to protect
a principal amount (called the "Protected Principal Value") against market
downturns as of a specific date in the future, but also wish to exercise
control of your available Account Value among the Sub-accounts to participate
in market experience. Under the GRO Plus program, you give us the right to
allocate amounts to Fixed Allocations as needed to support the guarantees
provided. The available Account Value is the amount not allocated to the Fixed
Allocations to support the guarantees provided. There is a fee associated with
this program. See "Living Benefit Programs," later in this Prospectus, for more
information about this program.

<R>
MAY I GIVE MY FINANCIAL PROFESSIONAL PERMISSION TO FORWARD TRANSACTION
INSTRUCTIONS?
Yes. Your Financial Professional may forward instructions regarding the
allocation of your account and request financial transactions between
investment options while you are living, subject to our rules and unless you
tell us otherwise. For annuities issued on or after July 21, 2006, subject to
our rules, we will require affirmative consent from you in order to give your
Financial Professional such authority. If your Financial Professional has this
authority, we deem that all transactions that are directed by your Financial
Professional with respect to your Annuity have been authorized by you. You must
contact us immediately if and when you revoke such authority. We will not be
responsible for acting on instructions from your Financial Professional until
we receive notification of the revocation of such person's authority. We may
also suspend, cancel or limit these privileges at any time. We will notify you
if we do.
</R>

MAY I AUTHORIZE MY THIRD PARTY INVESTMENT ADVISOR TO MANAGE MY ACCOUNT?
Yes. You may engage your own investment advisor to manage your account. These
investment advisors may be firms or persons who also are appointed by us, or
whose affiliated broker-dealers are appointed by us, as authorized sellers of
the Annuities. Even if this is the case, however, please note that the
investment advisor you engage to provide advice and/or make transfers for you,
is not acting on our behalf, but rather is acting on your behalf. We do not
offer advice about how to allocate your Account Value under any circumstance.
As such, we are not responsible for any recommendations such investment
advisors make, any investment models or asset allocation programs they choose
to follow or any specific transfers they make on your behalf.


* The rate in this example is hypothetical and may not reflect the current rate
for Guarantee Periods of this duration.



                                      30




AMERICAN SKANDIA ANNUITIES PROSPECTUS

<R>
   Any fee that is charged by your investment advisor is in addition to the
fees and expenses that apply under your Annuity. If you authorize your
investment advisor to withdraw amounts from your Annuity (to the extent
permitted) to pay for the investment advisor's fee, as with any other
withdrawal from your Annuity, you may incur adverse tax consequences, a CDSC
and/or a market value adjustment. Withdrawals to pay your investment advisor
generally will also reduce the level of various living and death benefit
guarantees provided (e.g. the withdrawals will reduce proportionately your
Annuity's guaranteed minimum death benefit.) We are not a party to the
agreement you have with your investment advisor and do not verify that amounts
withdrawn from your Annuity, including amounts withdrawn to pay for the
investment advisor's fee, are within the terms of your agreement with your
investment advisor. You will, however, receive confirmations of transactions
that affect your Annuity. If your investment advisor has also acted as your
Financial Professional with respect to the sale of your Annuity, he or she may
be receiving compensation for services provided both as a Financial
Professional and investment advisor. Alternatively, the investment advisor may
compensate the Financial Professional from whom you purchased your Annuity for
the referral that led you to enter into your investment advisory relationship
with the investment advisor. If you are interested in the details about the
compensation that your investment advisor and/or your Financial Professional
receive in connection with your Annuity, you should ask them for more details.
   We or an affiliate of ours may provide administrative support to licensed,
registered Financial Professionals or Investment advisors who you authorize to
make financial transactions on your behalf. We may require Financial
Professionals or investment advisors, who are authorized by multiple contract
owners to make financial transactions, to enter into an administrative
agreement with American Skandia as a condition of our accepting transactions on
your behalf. The administrative agreement may impose limitations on the
Financial Professional's or investment advisor's ability to request financial
transactions on your behalf. These limitations are intended to minimize the
detrimental impact of a Financial Professional who is in a position to transfer
large amounts of money for multiple clients in a particular Portfolio or type
of portfolio or to comply with specific restrictions or limitations imposed by
a Portfolio(s) of American Skandia.
   Please Note: Annuities where your Financial Professional or investment
advisor has the authority to forward instruction on financial transactions are
also subject to the restrictions on transfers between investment options that
are discussed in the section entitled "ARE THERE RESTRICTIONS OR CHARGES ON
TRANSFERS BETWEEN INVESTMENT OPTIONS?" Since transfer activity directed by a
Financial Professional or third party investment adviser may result in
unfavorable consequences to all contract owners invested in the affected
options, we reserve the right to limit the investment options available to a
particular Owner where such authority as described above has been given to a
Financial Professional or investment advisor or impose other transfer
restrictions we deem necessary. The administrative agreement may limit the
available investment options, require advance notice of large transactions, or
impose other trading limitations on your Financial Professional. Your Financial
Professional will be informed of all such restrictions on an ongoing basis. We
may also require that your Financial Professional transmit all financial
transactions using the electronic trading functionality available through our
Internet website (www.americanskandia.prudential.com).
</R>
Limitations that we may impose on your Financial Professional or investment
advisor under the terms of the administrative agreement do not apply to
financial transactions requested by an Owner on their own behalf, except as
otherwise described in this Prospectus.

HOW DO THE FIXED ALLOCATIONS WORK?
We credit a fixed interest rate to the Fixed Allocation throughout a set period
of time called a "Guarantee Period." Fixed Allocations currently are offered
with Guarantee Periods from 1 to 10 years. We may make Fixed Allocations of
different durations available in the future, including Fixed Allocations
offered exclusively for use with certain optional investment programs. Fixed
Allocations may not be available in all states and may not always be available
for all Guarantee Periods depending on market factors and other considerations.
   The interest rate credited to a Fixed Allocation is the rate in effect when
the Guarantee Period begins and does not change during the Guarantee Period.
The rates are an effective annual rate of interest. We determine the interest
rates for the various Guarantee Periods. At the time that we confirm your Fixed
Allocation, we will advise you of the interest rate in effect and the date your
Fixed Allocation matures. We may change the rates we credit new Fixed
Allocations at any time. Any change in interest rate does not affect Fixed
Allocations that were in effect before the date of the change. To inquire as to
the current rates for Fixed Allocations, please call 1-800-752-6342.


                                      31




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Managing Your Account Value continued

   A Guarantee Period for a Fixed Allocation begins:
.   when all or part of a net Purchase Payment is allocated to that particular
    Guarantee Period;
.   upon transfer of any of your Account Value to a Fixed Allocation for that
    particular Guarantee Period; or
.   when you "renew" a Fixed Allocation by electing a new Guarantee Period.
   To the extent permitted by law, we may establish different interest rates
for Fixed Allocations offered to a class of Owners who choose to participate in
various optional investment programs we make available. This may include, but
is not limited to, Owners who elect to use Fixed Allocations under a dollar
cost averaging program (see "Do You Offer Dollar Cost Averaging?") or a
balanced investment program (see "Do you offer programs designed to guarantee a
"Return of Premium" at a future date?"). The interest rate credited to Fixed
Allocations offered to this class of purchasers may be different than those
offered to other purchasers who choose the same Guarantee Period but who do not
participate in an optional investment program. Any such program is at our sole
discretion.

    American Skandia may offer Fixed Allocations with Guarantee Periods of 3
 months or 6 months exclusively for use as a short-term Fixed Allocation
 ("Short-term Fixed Allocations"). Short-term Fixed Allocations may only be
 established with your initial Purchase Payment or additional Purchase
 Payments. You may not transfer existing Account Value to a Short-term Fixed
 Allocation. We reserve the right to terminate offering these special purpose
 Fixed Allocations at any time.
    On the Maturity Date of the Short-term Fixed Allocation, the Account Value
 will be transferred to the Sub-account(s) you choose at the inception of the
 program. If no instructions are provided, such Account Value will be
 transferred to the AST Money Market Sub-account. Short-term Fixed Allocations
 may not be renewed on the Maturity Date. If you surrender the Annuity or
 transfer any Account Value from the Short-term Fixed Allocation to any other
 investment option before the end of the Guarantee Period, a Market Value
 Adjustment will apply.

HOW DO YOU DETERMINE RATES FOR FIXED ALLOCATIONS?
We do not have a specific formula for determining the fixed interest rates for
Fixed Allocations. Generally the interest rates we offer for Fixed Allocations
will reflect the investment returns available on the types of investments we
make to support our fixed rate guarantees. These investment types may include
cash, debt securities guaranteed by the United States government and its
agencies and instrumentalities, money market instruments, corporate debt
obligations of different durations, private placements, asset-backed
obligations and municipal bonds. In determining rates we also consider factors
such as the length of the Guarantee Period for the Fixed Allocation, regulatory
and tax requirements, liquidity of the markets for the type of investments we
make, commissions, administrative and investment expenses, our insurance risks
in relation to the Fixed Allocations, general economic trends and competition.
Some of these considerations are similar to those we consider in determining
the Insurance Charge that we deduct from Account Value allocated to the
Sub-accounts.
   We will credit interest on a new Fixed Allocation in an existing Annuity at
a rate not less than the rate we are then crediting to Fixed Allocations for
the same Guarantee Period selected by new Annuity purchasers in the same class.
   The interest rate we credit for a Fixed Allocation is subject to a minimum.
Please refer to the Statement of Additional Information. In certain states the
interest rate may be subject to a minimum under state law or regulation.

HOW DOES THE MARKET VALUE ADJUSTMENT WORK?
If you transfer or withdraw Account Value from a Fixed Allocation more than 30
days before the end of its Guarantee Period, we will adjust the value of your
investment based on a formula, called a "Market Value Adjustment" or "MVA". The
amount of any Market Value Adjustment can be either positive or negative,
depending on the movement of a combination of Strip Yields on Strips and an
Option-adjusted Spread (each as defined below) between the time that you
purchase the Fixed Allocation and the time you make a transfer or withdrawal.
The Market Value Adjustment formula compares the combination of Strip Yields
for Strips and the Option-adjusted Spreads as of the date the Guarantee Period
began with the combination of Strip Yields for Strips and the Option-adjusted
Spreads as of the date the MVA is being calculated. In certain states the
amount of any Market Value Adjustment may be limited under state law or
regulation. If your Annuity is governed by the laws of that state, any Market
Value Adjustment that applies will be subject to our rules for complying with
such law or regulation.
.   "Strips" are a form of security where ownership of the interest portion of
    United States Treasury securities are


                                      32




AMERICAN SKANDIA ANNUITIES PROSPECTUS

  separated from ownership of the underlying principal amount or corpus.
.   "Strip Yields" are the yields payable on coupon Strips of United States
    Treasury securities.
.   "Option-adjusted Spread" is the difference between the yields on corporate
    debt securities (adjusted to disregard options on such securities) and
    government debt securities of comparable duration. We currently use the
    Merrill Lynch 1 to 10 year Investment Grade Corporate Bond Index of
    Option-adjusted Spreads.

MVA FORMULA
The MVA formula is applied separately to each Fixed Allocation to determine the
Account Value of the Fixed Allocation on a particular date. The formula is as
follows:

                         [(1+I) / (1+J+0.0010)]/N/365/

where:

   I is the Strip Yield as of the start date of the Guarantee Period for coupon
   Strips maturing at the end of the applicable Guarantee Period plus the
   Option-adjusted Spread. If there are no Strips maturing at that time, we
   will use the Strip Yield for the Strips maturing as soon as possible after
   the Guarantee Period ends.

   J is the Strip Yield as of the date the MVA formula is being applied for
   coupon Strips maturing at the end of the applicable Guarantee Period plus
   the Option-adjusted Spread. If there are no Strips maturing at that time, we
   will use the Strip Yield for the Strips maturing as soon as possible after
   the Guarantee Period ends.

   N is the number of days remaining in the original Guarantee Period.

   If you surrender your Annuity under the right to cancel provision, the MVA
   formula is:

                           [(1 + I)/(1 + J)]/N/365/

MVA EXAMPLES
The following hypothetical examples show the effect of the MVA in determining
Account Value. Assume the following:
.   You allocate $50,000 into a Fixed Allocation (we refer to this as the
    "Allocation Date" in these examples) with a Guarantee Period of 5 years (we
    refer to this as the "Maturity Date" in these examples).
.   The Strip Yields for coupon Strips beginning on Allocation Date and
    maturing on Maturity Date plus the Option-adjusted Spread is 5.50% (I =
    5.50%).
.   You make no withdrawals or transfers until you decide to withdraw the
    entire Fixed Allocation after exactly three (3) years, at which point 730
    days remain before the Maturity Date (N = 730).

EXAMPLE OF POSITIVE MVA
Assume that at the time you request the withdrawal, the Strip Yields for Strips
maturing on the Maturity Date plus the Option-adjusted Spread is 4.00% (J =
4.00%). Based on these assumptions, the MVA would be calculated as follows:

                  MVA Factor = [(1+I)/(1+J+0.0010)]/N/365 /=
                          [1.055/1.041]/2 /= 1.027078

                          Interim Value = $57,881.25

                 Account Value after MVA = Interim Value x MVA
                              Factor = $59,448.56

EXAMPLE OF NEGATIVE MVA
Assume that at the time you request the withdrawal, the Strip Yields for Strips
maturing on the Maturity Date plus the Option-adjusted Spread is 7.00% (J =
7.00%). Based on these assumptions, the MVA would be calculated as follows:

                 MVA Factor  =  [(1+I)/(1+J+0.0010)]/N/365  /=
                         [1.055/1.071]/2  /=  0.970345

                         Interim Value  =  $57,881.25

                Account Value after MVA  =  Interim Value x MVA
                            Factor  =  $56,164.78.

WHAT HAPPENS WHEN MY GUARANTEE PERIOD MATURES?
The "Maturity Date" for a Fixed Allocation is the last day of the Guarantee
Period. Before the Maturity Date, you may choose to renew the Fixed Allocation
for a new Guarantee Period of the same or different length or you may transfer
all or part of that Fixed Allocation's Account Value to another Fixed
Allocation or to one or more Sub-accounts. We will not charge a MVA if you
choose to renew a Fixed Allocation on its Maturity Date or transfer the Account
Value to one or more Sub-accounts. We will notify you before the end of the
Guarantee Period about the fixed interest rates that we are currently crediting
to all Fixed Allocations that are being offered. The rates being credited to
Fixed Allocations may change before the Maturity Date.
   If you do not specify how you want a Fixed Allocation to be allocated on its
Maturity Date, we will then transfer the Account Value of the Fixed Allocation
to the AST Money Market Sub-account. You can then elect to allocate the Account
Value to any of the Sub-accounts or to a new Fixed Allocation.


                                      33




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Access To Account Value

WHAT TYPES OF DISTRIBUTIONS ARE AVAILABLE TO ME?
During the accumulation period you can access your Account Value through
partial withdrawals, Systematic Withdrawals, and where required for tax
purposes, Minimum Distributions. You can also surrender your Annuity at any
time. We may deduct a portion of the Account Value being withdrawn or
surrendered as a CDSC, if applicable. If you surrender your Annuity, in
addition to any CDSC, we may deduct the Annual Maintenance Fee, any Tax Charge
that applies and the charge for any optional benefits. We may also apply a
Market Value Adjustment to any Fixed Allocations being withdrawn or
surrendered. Certain amounts may be available to you each Annuity Year that are
not subject to a CDSC. These are called "Free Withdrawals." Unless you notify
us differently, withdrawals are taken pro-rata based on the Account Value in
the investment options at the time we receive your withdrawal request. Each of
these types of distributions is described more fully below.

ARE THERE TAX IMPLICATIONS FOR DISTRIBUTIONS?
(For more information, see "Tax Considerations.")

DURING THE ACCUMULATION PERIOD
A distribution during the accumulation period is deemed to come first from any
"gain" in your Annuity and second as a return of your "tax basis", if any.
Distributions from your Annuity are generally subject to ordinary income
taxation on the amount of any investment gain unless the distribution qualifies
as a non-taxable exchange or transfer. If you take a distribution prior to the
taxpayer's age 59 1/2, you may be subject to a 10% penalty in addition to
ordinary income taxes on any gain. You may wish to consult a professional tax
advisor for advice before requesting a distribution.

DURING THE ANNUITIZATION PERIOD
During the annuitization period, a portion of each annuity payment is taxed as
ordinary income at the tax rate you are subject to at the time of the payment.
The Code and regulations have "exclusionary rules" that we use to determine
what portion of each annuity payment should be treated as a return of any tax
basis you have in your Annuity. Once the tax basis in your Annuity has been
distributed, the remaining annuity payments are taxable as ordinary income. The
tax basis in your Annuity may be based on the tax-basis from a prior contract
in the case of a 1035 exchange or other qualifying transfer.

CAN I WITHDRAW A PORTION OF MY ANNUITY?
Yes, you can make a withdrawal during the accumulation period.
.   To meet liquidity needs, you can withdraw a limited amount from your
    Annuity during each Annuity Year without application of any CDSC that might
    otherwise be applicable being applied. We call this the "Free Withdrawal"
    amount. The Free Withdrawal amount is not available if you choose to
    surrender your Annuity. Amounts withdrawn as a Free Withdrawal do not
    reduce the amount of CDSC that may apply upon a subsequent withdrawal or
    surrender of your Annuity. The minimum Free Withdrawal you may request is
    $100.
.   You can also make withdrawals in excess of the Free Withdrawal amount. The
    maximum amount that you may withdraw will depend on your Annuity's
    Surrender Value as of the date we process the withdrawal request. After any
    partial withdrawal, your Annuity must have a Surrender Value of at least
    $1,000, or we may treat the partial withdrawal request as a request to
    fully surrender your Annuity. The minimum partial withdrawal you may
    request is $100.
<R>
   To determine if a CDSC applies to partial withdrawals, we:
1. First determine what, if any, amounts qualify as a Free Withdrawal. These
   amounts are not subject to the CDSC.
2. Next determine what, if any, remaining amounts are withdrawals of Purchase
   Payments. Amounts in excess of the Free Withdrawal amount will be treated as
   withdrawals of Purchase Payments unless all Purchase Payments have been
   previously withdrawn. These amounts are subject to the CDSC. Purchase
   Payments are withdrawn on a first in, first out basis. We withdraw your
   oldest Purchase Payments first so that the lowest CDSC will apply to the
   amount withdrawn.
3. Withdraw any remaining amounts from any other Account Value. These amounts
   are not subject to the CDSC.
</R>
   You may request a withdrawal for an exact dollar amount after deduction of
any CDSC that applies (called a "net withdrawal") or request a gross withdrawal
from which we will deduct any CDSC that applies, resulting in less money being
payable to you than the amount you requested. If you request a net withdrawal,
the amount deducted from your Account Value to pay the CDSC may also be subject
to a CDSC.
   Partial withdrawals may also be available following annuitization but only
if you choose certain annuity payment options.
   To request the forms necessary to make a withdrawal from your Annuity, call
1-800-752-6342 or visit our Internet Website at
www.americanskandia.prudential.com.


                                      34




AMERICAN SKANDIA ANNUITIES PROSPECTUS


HOW MUCH CAN I WITHDRAW AS A FREE WITHDRAWAL?
<R>
The maximum Free Withdrawal amount during each Annuity Year is equal to 10% of
all Purchase Payments that are subject to a CDSC. Withdrawals made within an
Annuity Year reduce the Free Withdrawal amount available for the remainder of
the Annuity Year. If you do not make a withdrawal during an Annuity Year, you
are not allowed to carry over the Free Withdrawal amount to the next Annuity
Year.
</R>

CAN I MAKE PERIODIC WITHDRAWALS FROM MY ANNUITY DURING THE ACCUMULATION PERIOD?
Yes. We call these "Systematic Withdrawals." You can receive Systematic
Withdrawals of earnings only or a flat dollar amount. Systematic Withdrawals
may be subject to a CDSC. We will determine whether a CDSC applies and the
amount in the same way as we would for a partial withdrawal.
   Systematic Withdrawals can be made from Account Value allocated to the
Sub-accounts or Fixed Allocations. Generally, Systematic Withdrawals from Fixed
Allocations are limited to earnings accrued after the program of Systematic
Withdrawals begins, or payments of fixed dollar amounts that do not exceed such
earnings. Systematic Withdrawals are available on a monthly, quarterly,
semi-annual or annual basis.
   The minimum amount for each Systematic Withdrawal is $100. If any scheduled
Systematic Withdrawal is for less than $100 (which may occur under a program
that provides payment of an amount equal to the earnings in your Annuity for
the period requested), we may postpone the withdrawal and add the expected
amount to the amount that is to be withdrawn on the next scheduled Systematic
Withdrawal.

<R>
DO YOU OFFER A PROGRAM FOR WITHDRAWALS UNDER SECTIONS 72(T)/72(Q) OF THE
INTERNAL
</R>
REVENUE CODE?
<R>
Yes. If your Annuity is used as a funding vehicle for certain retirement plans
that receive special tax treatment under Sections 401, 403(b), 408 or 408A of
the Code, Section 72(t) of the Code may provide an exception to the 10% penalty
tax on distributions made prior to age 59/1//\\2 \\if you elect to receive
distributions as a series of "substantially equal periodic payments". For
contracts issued as nonqualified annuities, the Internal Revenue Code provides
for the same exemption from penalty under Section 72(q) of the Code.
Distributions received under these provisions in any Annuity Year that exceed
the maximum amount available as a free withdrawal will be subject to any
applicable CDSC. We may apply a Market Value Adjustment to any Fixed
Allocations. To request a program that complies with Sections 72(t)/72(q), you
must provide us with certain required information in writing on a form
acceptable to us. We may require advance notice to allow us to calculate the
amount of 72(t)/72(q) withdrawals. The Surrender Value of your Annuity must be
at least $20,000 before we will allow you to begin a program for withdrawals
under Sections 72(t)/72(q). The minimum amount for any such withdrawal is $100
and payments may be made monthly, quarterly, semi-annually or annually.
</R>
   You may also annuitize your contract and begin receiving payments for the
remainder of your life (or life expectancy) as a means of receiving income
payments before age 59/1//\\2 \\that are not subject to the 10% penalty.

WHAT ARE MINIMUM DISTRIBUTIONS AND WHEN WOULD I NEED TO MAKE THEM?
(See "Tax Considerations" for a further discussion of Minimum Distributions.)
<R>
   Minimum Distributions are a type of Systematic Withdrawal we allow to meet
distribution requirements under Sections 401, 403(b) or 408 of the Code.
Minimum distribution rules do not apply to Roth IRAs during the Owner's
lifetime. Under the Code, you may be required to begin receiving periodic
amounts from your Annuity. In such case, we will allow you to make Systematic
Withdrawals in amounts that satisfy the minimum distribution rules under the
Code. We do not assess a CDSC on Minimum Distributions from your Annuity if you
are required by law to take such Minimum Distributions from your Annuity at the
time it is taken. However, a CDSC (if applicable) may be assessed on that
portion of a Systematic Withdrawal that is taken to satisfy the minimum
distribution requirements in relation to other savings or investment plans
under other qualified retirement plans not maintained with American Skandia.
   The amount of the required Minimum Distribution for your particular
situation may depend on other annuities, savings or investments. We will only
calculate the amount of your required Minimum Distribution based on the value
of your Annuity. We require three (3) days advance written notice to calculate
and process the amount of your payments. You may elect to have Minimum
Distributions paid out monthly, quarterly, semi-annually or annually. The $100
minimum amount that applies to Systematic Withdrawals applies to monthly
minimum distributions but does not apply to Minimum Distributions taken out on
a quarterly, semi-annual or annual basis.
</R>
   You may also annuitize your contract and begin receiving payments for the
remainder of your life (or life expectancy) as a


                                      35




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Access To Account Value continued

means of receiving income payments and satisfying the Minimum Distribution
requirements under the Code.

CAN I SURRENDER MY ANNUITY FOR ITS VALUE?
Yes. During the accumulation period you can surrender your Annuity at any time.
Upon surrender, you will receive the Surrender Value. Upon surrender of your
Annuity, you will no longer have any rights under the surrendered Annuity.
<R>
   For purposes of calculating any applicable CDSC on surrender, the Purchase
Payments being withdrawn may be greater than your remaining Account Value or
the amount of your withdrawal request. This is most likely to occur if you have
made prior withdrawals under the Free Withdrawal provision or if your Account
Value has declined in value due to negative market performance. In that
scenario, we would determine the CDSC amount as the applicable percentage of
the Purchase Payments being withdrawn, rather than as a percentage of the
remaining Account Value or withdrawal request. Thus, the CDSC would be greater
than if it were calculated as a percentage of remaining Account Value or
withdrawal amount. We may apply a Market Value Adjustment to any Fixed
Allocations.
</R>
   Under certain annuity payment options, you may be allowed to surrender your
Annuity for its then current value.
   To request the forms necessary to surrender your Annuity, call
1-800-752-6342 or visit our Internet Website at
www.americanskandia.prudential.com.

WHAT IS A MEDICALLY-RELATED SURRENDER AND HOW DO I QUALIFY?
<R>
Where permitted by law, you may request to surrender all or part of your
Annuity prior to the Annuity Date without application of any otherwise
applicable CDSC upon occurrence of a medically-related "Contingency Event" as
defined below. We may apply a Market Value Adjustment to any Fixed Allocations.
If you request a full surrender, the amount payable will be your Account Value
minus, with respect to Optimum Plus, (a) the amount of any Optimum Plus amounts
applied within 12 months prior to your request to surrender your Annuity under
this provision; and (b) the amount of any Optimum Plus amounts added in
conjunction with any Purchase Payments received after our receipt of your
request for a medically-related surrender (e.g. Purchase Payments received at
such time pursuant to a salary reduction program). With respect to partial
surrenders, we similarly reserve the right to take back Optimum Plus amounts as
described above.
</R>
   This waiver of any applicable CDSC is subject to our rules, including but
not limited to the following:
.   The Annuitant must have been named or any change of Annuitant must have
    been accepted by us, prior to the "Contingency Event" described below in
    order to qualify for a medically-related surrender;
.   the Annuitant must be alive as of the date we pay the proceeds of such
    surrender request;
.   if the Owner is one or more natural persons, all such Owners must also be
    alive at such time;
.   we must receive satisfactory proof of the Annuitant's confinement in a
    Medical Care Facility or Fatal Illness in writing on a form satisfactory to
    us;
<R>
.   this benefit is not available if the total Purchase Payments received
    exceed $500,000 for all annuities issued by us with this benefit where the
    same person is named as Annuitant; and
.   no additional Purchase Payments can be made to the Annuity
</R>

   A "Contingency Event" occurs if the Annuitant is:
.   first confined in a "Medical Care Facility" while your Annuity is in force
    and remains confined for at least 90 days in a row; or
.   first diagnosed as having a "Fatal Illness" while your Annuity is in force.
   The definitions of "Medical Care Facility" and "Fatal Illness," as well as
additional terms and conditions, are provided in your Annuity. Specific details
and definitions in relation to this benefit may differ in certain jurisdictions.

WHAT TYPES OF ANNUITY OPTIONS ARE AVAILABLE?
We currently make available annuity options that provide fixed annuity
payments, variable annuity payments or adjustable annuity payments. Your
contract provides certain fixed annuity payment options. We currently offer
variable annuity payment options, which are provided by exchanging the deferred
annuity contract described in this prospectus for a separate contract issued as
an annuity settlement option and described in a separate prospectus. The
variable annuity payment options are described in detail in a separate
prospectus, which is available upon request and which will be provided to you
if and when you elect one of the variable annuity payment options. The separate
prospectus sets forth the fees and charges under the variable payment option,
which may be higher than those set forth in this prospectus. We do not
guarantee to continue to make available variable annuity payment options or any
other option other than the fixed annuity payment options set forth in your
contract. Fixed options provide the same amount with each payment. Variable


                                      36




AMERICAN SKANDIA ANNUITIES PROSPECTUS

options generally provide a payment which may increase or decrease depending on
the investment performance of the Sub-accounts and may include a guarantee
feature. Adjustable options provide a fixed payment that is periodically
adjusted based on current interest rates. Please refer to the "Guaranteed
Minimum Income Benefit," the "Lifetime Five Income Benefit and the Spousal
Lifetime Five Income Benefit," under "Living Benefits" below for a description
of annuity options that are available when you elect these benefits. For
additional information on annuity payment options you may request a Statement
of Additional Information.
   When you purchase an Annuity, or at a later date, you may choose an Annuity
Date, an annuity option and the frequency of annuity payments. You may change
your choices before the Annuity Date under the terms of your contract. A
maximum Annuity Date may be required by law. The Annuity Date may depend on the
annuity option you choose. Certain annuity options may not be available
depending on the age of the Annuitant.
   Certain of these annuity options may be available to Beneficiaries who
choose to receive the Death Benefit proceeds as a series of payments instead of
a lump sum payment.
   Please note, with respect to Optimum Plus, you may not annuitize within the
first three Annuity Years and with respect to Optimum and Optimum Four, you may
not annuitize within the first Annuity Year.

Option 1

Payments for Life: Under this option, income is payable periodically until the
death of the "key life". The "key life" (as used in this section) is the person
or persons upon whose life annuity payments are based. No additional annuity
payments are made after the death of the key life. Since no minimum number of
payments is guaranteed, this option offers the largest amount of periodic
payments of the life contingent annuity options. It is possible that only one
payment will be payable if the death of the key life occurs before the date the
second payment was due, and no other payments nor death benefits would be
payable. This Option is currently available on a fixed or variable basis. If
you choose this option on a variable basis, you will be provided with a
separate prospectus that describes such variable annuity. Under this option,
you cannot make a partial or full surrender of the annuity.

Option 2

Payments Based on Joint Lives: Under this option, income is payable
periodically during the joint lifetime of two key lives, and thereafter during
the remaining lifetime of the survivor, ceasing with the last payment prior to
the survivor's death. No minimum number of payments is guaranteed under this
option. It is possible that only one payment will be payable if the death of
all the key lives occurs before the date the second payment was due, and no
other payments or death benefits would be payable. This Option is currently
available on a fixed or variable basis. If you choose this option on a variable
basis, you will be provided with a separate prospectus that describes such
variable annuity. Under this option, you cannot make a partial or full
surrender of the annuity.

Option 3

Payments for Life with a Certain Period: Under this option, income is payable
until the death of the key life. However, if the key life dies before the end
of the period selected (5, 10 or 15 years), the remaining payments are paid to
the Beneficiary until the end of such period. This Option is currently
available on a fixed or variable basis. If you choose this option on a variable
basis, you will be provided with a separate prospectus that describes such
variable annuity. If you elect to receive payments on a variable basis under
this option, you can request partial or full surrender of the annuity and
receive its then current cash value (if any) subject to our rules.

Option 4

Fixed Payments for a Certain Period: Under this option, income is payable
periodically for a specified number of years. If the payee dies before the end
of the specified number of years, the remaining payments are paid to the
Beneficiary until the end of such period. Note that under this option, payments
are not based on any assumptions of life expectancy. Therefore, that portion of
the Insurance Charge assessed to cover the risk that key lives outlive our
expectations provides no benefit to an Owner selecting this option. Under this
option, you cannot make a partial or full surrender of the annuity.

Option 5

Variable Payments for Life with a Cash Value: Under this option, benefits are
payable periodically until the death of the key life. Benefits may increase or
decrease depending on the investment performance of the Sub-accounts. This
option has a cash value that also varies with the investment performance of the
Sub-account. The cash value provides a "cushion" from volatile investment
performance so that negative investment performance does not automatically
result in a decrease in the annuity


                                      37




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Access To Account Value continued

payment each month, and positive investment performance does not automatically
result in an increase in the annuity payment each month. The cushion generally
"stabilizes" monthly annuity payments. Any cash value remaining on the death of
the key life is paid to the Beneficiary in a lump sum or as periodic payments.
Under this option, you can request partial or full surrender of the annuity and
receive its then current cash value (if any) subject to our rules. If you
choose this option, you will be provided with a separate prospectus that
describes such variable annuity.

Option 6

Variable Payments for Life with a Cash Value and Guarantee: Under this option,
benefits are payable as described in Option 5; except that, while the key life
is alive, the annuity payment will not be less than a guaranteed amount, which
generally is equal to the first annuity payment. We charge an additional amount
for this guarantee. Under this option, any cash value remaining on the death of
the key life is paid to the Beneficiary in a lump sum or as periodic payments.
Under this option, you can request partial or full surrender of the annuity and
receive its then current cash value (if any) subject to our rules. If you
choose this option, you will be provided with a separate prospectus that
describes such variable annuity.
   We may make different annuity payment options available in the future. We do
not guarantee to continue to make available variable annuity payment options or
any other option other than the fixed annuity payment options set forth in your
contract.

HOW AND WHEN DO I CHOOSE THE ANNUITY PAYMENT OPTION?
Unless prohibited by law, we require that you elect either a life annuity or an
annuity with a certain period of at least 5 years if any CDSC would apply were
you to surrender your Annuity on the Annuity Date. Certain annuity payment
options may not be available if your Annuity Date occurs during the period that
a CDSC would apply.
   You have a right to choose your annuity start date. If you have not provided
us with your Annuity Date or annuity payment option in writing, then:
.   a default date for the Annuity Date will be the first day of the calendar
    month following the later of the Annuitant's 85th birthday or the fifth
    anniversary of our receipt of your request to purchase an Annuity; and
.   the annuity payments, where allowed by law, will be calculated on a fixed
    basis under Option 3, Payments for Life with 10 years certain.
   If you choose to defer the Annuity Date beyond the default date, the IRS may
not consider your contract to be an annuity under the tax law. If that should
occur, all gain in your Annuity at that time will become immediately taxable to
you. Further, each subsequent year's increase in Account Value would be taxable
in that year. By choosing to continue to defer after the default date, you will
assume the risk that your Annuity will not be considered an annuity for federal
income tax purposes.

HOW ARE ANNUITY PAYMENTS CALCULATED?
FIXED ANNUITY PAYMENTS (OPTIONS 1-4)
If you choose to receive fixed annuity payments, you will receive equal
fixed-dollar payments throughout the period you select. The amount of the fixed
payment will vary depending on the annuity payment option and payment frequency
you select. Generally, the first annuity payment is determined by multiplying
the Account Value, minus any state premium taxes that may apply, by the factor
determined from our table of annuity rates. The table of annuity rates differs
based on the type of annuity chosen and the frequency of payment selected. Our
rates will not be less than our guaranteed minimum rates. These guaranteed
minimum rates are derived from the a2000 Individual Annuity Mortality Table
with an assumed interest rate of 3% per annum. Where required by law or
regulation, such annuity table will have rates that do not differ according to
the gender of the key life. Otherwise, the rates will differ according to the
gender of the key life.

VARIABLE ANNUITY PAYMENTS
Generally, we currently offer three different types of variable annuity payment
options. The following is a brief description of the variable annuity payment
options. If you choose a variable annuity payment option, you will be provided
with a separate prospectus that describes such variable annuity. There is no
guarantee that we will continue to make available variable annuity payment
options. The first annuity payment will be calculated based upon the assumed
investment return ("AIR"). You select the AIR before we start to make annuity
payments. You will not receive annuity payments until you choose an AIR. The
remaining annuity payments will fluctuate based on the performance of the
Sub-accounts relative to the AIR, as well as other factors described below. The
greater the AIR, the greater the first annuity payment. A higher AIR may result
in smaller potential growth in the annuity payments. A lower AIR results in a
lower initial annuity payment. Within payment options 1-3, if the Sub-accounts
you choose perform exactly the same as the AIR, then subsequent annuity
payments will be the same as the first


                                      38




AMERICAN SKANDIA ANNUITIES PROSPECTUS

annuity payment. If the Sub-accounts you choose perform better than the AIR,
then subsequent annuity payments will be higher than the first annuity payment.
If the Sub-accounts you choose perform worse than the AIR, then subsequent
annuity payments will be lower than the first. Within payment options 5 and 6,
the cash value for the Annuitant (while alive) and a variable period of time
during which annuity payments will be made whether or not the Annuitant is
still alive are adjusted based on the performance of the Sub-accounts relative
to the AIR; however, subsequent annuity payments do not always increase or
decrease based on the performance of the Sub-accounts relative to the AIR.

 .   Variable Payments (Options 1-3)
     We calculate each annuity payment amount by multiplying the number of
     units scheduled to be redeemed under a schedule of units for each
     Sub-account by the Unit Value of each Sub-account on the annuity payment
     date. We determine the schedule of units based on your Account Value
     (minus any premium tax that applies) at the time you elect to begin
     receiving annuity payments. The schedule of units will vary based on the
     annuity payment option selected, the length of any certain period (if
     applicable), the Annuitant's age and gender (if annuity payments are due
     for the life of the Annuitant) and the Unit Value of the Sub-accounts you
     initially selected on the Issue Date. The calculation is performed for
     each Sub-account, and the sum of the Sub-account calculations equals the
     amount of your annuity payment. Other than to fund annuity payments, the
     number of units allocated to each Sub-account will not change unless you
     transfer among the Sub-accounts or make a withdrawal (if allowed). You can
     select one of three AIRs for these options: 3%, 5% or 7%.

 .   Stabilized Variable Payments (Option 5)
     This option provides guaranteed payments for life, a cash value for the
     Annuitant (while alive) and a variable period of time during which annuity
     payments will be made whether or not the Annuitant is still alive. We
     calculate the initial annuity payment amount by multiplying the number of
     units scheduled to be redeemed under a schedule of units by the Unit
     Values determined on the annuitization date. The schedule of units is
     established for each Sub-account you choose on the annuitization date
     based on the applicable benchmark rate, meaning the AIR, and the annuity
     factors. The annuity factors reflect our assumptions regarding the costs
     we expect to bear in guaranteeing payments for the lives of the Annuitant
     and will depend on the benchmark rate, the annuitant's attained age and
     gender (where permitted). Unlike variable payments (described above) where
     each payment can vary based on Sub-account performance, this payment
     option cushions the immediate impact of Sub-account performance by
     adjusting the length of the time during which annuity payments will be
     made whether or not the Annuitant is alive while generally maintaining a
     level annuity payment amount. Sub-account performance that exceeds a
     benchmark rate will generally extend this time period, while Sub-account
     performance that is less than a benchmark rate will generally shorten the
     period. If the period reaches zero and the Annuitant is still alive,
     Annuity Payments continue, however, the annuity payment amount will vary
     depending on Sub-account performance, similar to conventional variable
     payments. The AIR for this option is 4%.

 .   Stabilized Variable Payments with a Guaranteed Minimum (Option 6)
     This option provides guaranteed payments for life in the same manner as
     Stabilized Variable Payments (described above). In addition to the
     stabilization feature, this option also guarantees that variable annuity
     payments will not be less than the initial annuity payment amount
     regardless of Sub-account performance. The AIR for this option is 3%.

ADJUSTABLE ANNUITY PAYMENTS
We may make an adjustable annuity payment option available. Adjustable annuity
payments are calculated similarly to fixed annuity payments except that on
every fifth (5/th/) anniversary of receiving annuity payments, the annuity
payment amount is adjusted upward or downward depending on the rate we are
currently crediting to annuity payments. The adjustment in the annuity payment
amount does not affect the duration of remaining annuity payments, only the
amount of each payment.


                                      39




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Living Benefit Programs


DO YOU OFFER PROGRAMS DESIGNED TO PROVIDE INVESTMENT PROTECTION FOR OWNERS
WHILE THEY ARE ALIVE?
<R>
American Skandia offers different optional benefits, for an additional charge,
that can provide investment protection for Owners while they are alive.
Notwithstanding the additional protection provided under the optional Living
Benefit Programs, the additional cost has the impact of reducing net
performance of the investment options. Each optional benefit offers a distinct
type of guarantee, regardless of the performance of the Sub-accounts, that may
be appropriate for you depending on the manner in which you intend to make use
of your Annuity while you are alive. Depending on which optional benefit you
choose, you can have substantial flexibility to invest in the Sub-accounts
while:
</R>
.   protecting a principal amount from decreases in value as of specified
    future dates due to investment performance;
.   taking withdrawals with a guarantee that you will be able to withdraw not
    less than a principal amount over time;
.   guaranteeing a minimum amount of growth will be applied to your principal,
    if it is to be used as the basis for certain types of lifetime income
    payments; or
.   providing spousal continuation of certain benefits.
   The "living benefits" that American Skandia offers are the Guaranteed Return
Option Plus (GRO Plus), the Guaranteed Minimum Withdrawal Benefit (GMWB), the
Guaranteed Minimum Income Benefit (GMIB), the Lifetime Five Income Benefit and
the Spousal Lifetime Five Income Benefit. Please refer to the benefit
descriptions that follow for a complete description of the terms, conditions
and limitations of each optional benefit. You should consult with your
Financial Professional to determine if any of these optional benefits may be
appropriate for you based on your financial needs. There are many factors to
consider, but we note that among them you may want to evaluate the tax
implications of these different approaches to meeting your needs, both between
these benefits and in comparison to other potential solutions to your needs
(e.g., comparing the tax implications of the withdrawal benefit and annuity
payments).

GUARANTEED RETURN OPTION PLUS/SM /
(GRO PLUS/SM/)

 The Guaranteed Return Option Plus described below is only being offered in
 those jurisdictions where we have received regulatory approval, and will be
 offered subsequently in other jurisdictions when we receive regulatory
 approval in those jurisdictions. Certain terms and conditions may differ
 between jurisdictions once approved. The program can be elected by new
 purchasers on the Issue Date of their Annuity, and can be elected by existing
 Annuity Owners on either the anniversary of the Issue Date of their Annuity or
 on a date other than that anniversary, as described below under "Election of
 the Program". The Guaranteed Return Option Plus is not available if you elect
 the Guaranteed Return Option program (and it is currently active), the
 Guaranteed Minimum Withdrawal Benefit rider, the Guaranteed Minimum Income
 Benefit rider, the Lifetime Five Income Benefit rider, the Spousal Lifetime
 Five Income Benefit rider, the Highest Daily Value Death Benefit, or the
 Dollar Cost Averaging program if it involves transfers out of the Fixed
 Allocations.

   We offer a program that, after a seven-year period following commencement of
the program (we refer to the end of that period and any applicable subsequent
period as the "maturity date") and on each anniversary of the maturity date
thereafter while the program remains in effect, guarantees your Account Value
will not be less than your Account Value on the effective date of your program
(called the "Protected Principal Value"). The program also offers you the
opportunity to elect a second, enhanced guaranteed amount at a later date if
your Account Value has increased, while preserving the guaranteed amount
established on the effective date of your program. The enhanced guaranteed
amount (called the "Enhanced Protected Principal Value") guarantees that, after
a separate period following election of the enhanced guarantee and on each
anniversary thereafter while this enhanced guarantee amount remains in effect,
your Account


                                      40




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Value will not be less than your Account Value on the effective date of your
election of the enhanced guarantee.
   The program monitors your Account Value daily and, if necessary,
systematically transfers amounts between the Sub-accounts you choose and Fixed
Allocations used to support the Protected Principal Value(s). The program may
be appropriate if you wish to protect a principal amount against market
downturns as of a specific date in the future, but also wish to invest in the
Sub-accounts to participate in market performance. There is an additional
charge if you elect the Guaranteed Return Option Plus program.
   The guarantees provided by the program exist only on the applicable maturity
date(s) and on each anniversary of the maturity date(s) thereafter. However,
due to the ongoing monitoring of your Account Value and the transfer of Account
Value between the Sub-accounts and the Fixed Allocations to support our future
guarantees, the program may provide some protection from significant market
losses if you choose to surrender your Annuity or begin receiving annuity
payments prior to a maturity date. For this same reason, the program may limit
your ability to benefit from market increases while it is in effect.

KEY FEATURE -- PROTECTED PRINCIPAL
VALUE/ENHANCED PROTECTED PRINCIPAL VALUE
The Guaranteed Return Option Plus offers a base guarantee as well as the option
of electing an enhanced guarantee at a later date.

.   Base Guarantee: Under the base guarantee, American Skandia guarantees that
    on the maturity date and on each anniversary of the maturity date
    thereafter that the program remains in effect, your Account Value will be
    no less than the Protected Principal Value. On the maturity date and on
    each anniversary after the maturity date that the program remains in
    effect, if your Account Value is below the Protected Principal Value,
    American Skandia will apply additional amounts to your Annuity from its
    general account to increase your Account Value to be equal to the Protected
    Principal Value.

.   Enhanced Guarantee: On any anniversary following commencement of the
    program, you can establish an enhanced guaranteed amount based on your
    current Account Value. Under the enhanced guarantee, American Skandia
    guarantees that at the end of a specified period following the election of
    the enhanced guarantee (also referred to as its "maturity date"), and on
    each anniversary of the maturity date thereafter that the enhanced
    guaranteed amount remains in effect, your Account Value will be no less
    than the Enhanced Protected Principal Value. You can elect an enhanced
    guarantee more than once; however, a subsequent election supersedes the
    prior election of an enhanced guarantee. Election of an enhanced guarantee
    does not impact the base guarantee. In addition, you may elect an "auto
    step-up" feature that will automatically create an enhanced guarantee (or
    increase your enhanced guarantee, if previously elected) on each
    anniversary of the program (and create a new maturity period for the new
    enhanced guarantee) if the Account Value as of that anniversary exceeds the
    Protected Principal Value or Enhanced Protected Principal Value by 7% or
    more. You may also elect to terminate an enhanced guarantee. If you elect
    to terminate the enhanced guarantee, the base guarantee will remain in
    effect. If you have elected the enhanced guarantee, on the guarantee's
    maturity date and on each anniversary of the maturity date thereafter that
    the enhanced guarantee amount remains in effect, if your Account Value is
    below the Enhanced Protected Principal Value, American Skandia will apply
    additional amounts to your Annuity from its general account to increase
    your Account Value to be equal to the Enhanced Protected Principal Value.
   Any amounts added to your Annuity to support our guarantees under the
program will be applied to any Fixed Allocations first and then to the
Sub-accounts pro-rata, based on your most recent allocation instructions in
accordance with the allocation mechanism we use under the program. We will
notify you of any amounts added to your Annuity under the program. If our
assumptions are correct and the operations relating to the administration of
the program work properly, we do not expect that we will need to add additional
amounts to your Annuity. The Protected Principal Value is referred to as the
"Base Guarantee" and the Enhanced Protected Principal Value is referred to as
the "Step-up Guarantee" in the rider we issue for this benefit.

WITHDRAWALS UNDER YOUR ANNUITY
Withdrawals from your Annuity, while the program is in effect, will reduce the
base guarantee under the program as well as any enhanced guarantee. Cumulative
annual withdrawals up to 5% of the Protected Principal Value as of the
effective date of the program (adjusted for any subsequent Purchase Payments
and, with respect to Optimum Plus, any Credits applied to such Purchase
Payments) will reduce the applicable guaranteed


                                      41




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Living Benefit Programs continued

amount by the actual amount of the withdrawal (referred to as the
"dollar-for-dollar limit"). If the amount withdrawn is greater than the
dollar-for-dollar limit, the portion of the withdrawal equal to the
dollar-for-dollar limit will be treated as described above, and the portion of
the withdrawal in excess of the dollar-for-dollar limit will reduce the base
guarantee and the enhanced guarantee proportionally, according to the formula
as described in the rider for this benefit (see the examples of this
calculation below). Withdrawals other than Systematic Withdrawals will be taken
pro-rata from the Sub-accounts and any Fixed Allocations. Systematic
Withdrawals will be taken pro-rata from the Sub-accounts and any Fixed
Allocations up to growth attributable to the Fixed Allocations and thereafter
pro-rata solely from the Sub-accounts. Withdrawals will be subject to all other
provisions of your Annuity, including any Contingent Deferred Sales Charge and
Market Value Adjustment that would apply.
   Charges for other optional benefits under your Annuity that are deducted as
an annual charge in arrears will not reduce the applicable guaranteed amount
under the Guaranteed Return Option Plus program and any third party investment
advisory service will be treated as withdrawals and will reduce the applicable
guaranteed amount.
<R>
   The following examples of dollar-for-dollar and proportional reductions
assume that: 1.) the Issue Date and the effective date of the GRO Plus/SM/
program are October 13, 2004; 2.) an initial Purchase Payment of $250,000
(includes any Credits under Optimum Plus); 3.) a base guarantee amount of
$250,000; and 4.) a dollar-for-dollar limit of $12,500 (5% of $250,000). The
values set forth here are purely hypothetical and do not reflect the charge for
GRO Plus or other fees and charges.
</R>

EXAMPLE 1. DOLLAR-FOR-DOLLAR REDUCTION
A $10,000 withdrawal is taken on November 29, 2004 (in the first Annuity Year).
No prior withdrawals have been taken. As the amount withdrawn is less than the
Dollar-for-dollar Limit:
.   The base guarantee amount is reduced by the amount withdrawn (i.e., by
    $10,000, from $250,000 to $240,000).
.   The remaining dollar-for-dollar limit ("Remaining Limit") for the balance
    of the first Annuity Year is also reduced by the amount withdrawn (from
    $12,500 to $2,500).

EXAMPLE 2. DOLLAR-FOR-DOLLAR AND PROPORTIONAL REDUCTIONS
A second $10,000 withdrawal is taken on December 18, 2004 (still within the
first Annuity Year). The Account Value immediately before the withdrawal is
$180,000. As the amount withdrawn exceeds the Remaining Limit of $2,500 from
Example 1:
.   the base guarantee amount is first reduced by the Remaining Limit (from
    $240,000 to $237,500);
.   The result is then further reduced by the ratio of A to B, where:
 .   A is the amount withdrawn less the Remaining Limit ($10,000 - $2,500, or
     $7,500).
 .   B is the Account Value less the Remaining Limit ($180,000 - $2,500, or
     $177,500).
      The resulting base guarantee amount is: $237,500 X
    (1 - $7,500 / $177,500), or $227,464.79.
.   The Remaining Limit is set to zero (0) for the balance of the first Annuity
    Year.

EXAMPLE 3. RESET OF THE DOLLAR-FOR-DOLLAR LIMIT
A $10,000 withdrawal is made on December 19, 2005 (second Annuity Year). The
Remaining Limit has been reset to the dollar-for-dollar limit of $12,500. As
the amount withdrawn is less than the dollar-for-dollar limit:
.   The base guarantee amount is reduced by the amount withdrawn (i.e., reduced
    by $10,000, from $227,464.79 to $217,464.79).
.   The Remaining Limit for the balance of the second Annuity Year is also
    reduced by the amount withdrawn (from $12,500 to $2,500).

KEY FEATURE -- ALLOCATION OF ACCOUNT VALUE
Account Value is transferred to and maintained in Fixed Allocations to the
extent we, in our sole discretion, deem it is necessary to support our
guarantee(s) under the program. We monitor fluctuations in your Account Value
each Valuation Day, as well as the prevailing interest rates on Fixed
Allocations, the remaining duration(s) until the applicable maturity date(s)
and the amount of Account Value allocated to Fixed Allocation(s) relative to a
"reallocation trigger", which determines whether Account Value must be
transferred to or from Fixed Allocation(s). While you are not notified when
your Account Value reaches a reallocation trigger, you will receive a
confirmation statement indicating the transfer of a portion of your Account
Value either to or from Fixed Allocation(s).

.   If your Account Value is greater than or equal to the reallocation trigger,
    your Account Value in the Sub-accounts will remain allocated according to
    your most recent instructions. If a portion of Account Value was previously
    allocated to a Fixed Allocation to support the applicable guaranteed
    amount, all or a portion of those amounts may be transferred from the Fixed
    Allocation and re-allocated to the Sub-accounts pro-rata according to your
    most recent allocation instructions (including the model allocations under
    any asset allocation program you may have elected). A Market Value
    Adjustment will apply when we


                                      42




AMERICAN SKANDIA ANNUITIES PROSPECTUS

  reallocate Account Value from a Fixed Allocation to the Sub-accounts, which
   may result in a decrease or increase in your Account Value.

.   If your Account Value is less than the reallocation trigger, a portion of
    your Account Value in the Sub-accounts will be transferred from the
    Sub-accounts pro-rata according to your allocations to a new Fixed
    Allocation(s) to support the applicable guaranteed amount. The new Fixed
    Allocation(s) will have a Guarantee Period equal to the time remaining
    until the applicable maturity date(s). The Account Value allocated to the
    new Fixed Allocation(s) will be credited with the fixed interest rate(s)
    then being credited to a new Fixed Allocation(s) maturing on the applicable
    maturity date(s) (rounded to the next highest yearly duration). The Account
    Value will remain invested in each applicable Fixed Allocation until the
    applicable maturity date unless, at an earlier date, your Account Value is
    greater than or equal to the reallocation trigger and, therefore, amounts
    can be transferred to the Sub-accounts while maintaining the guaranteed
    protection under the program (as described above).

 If a significant amount of your Account Value is systematically transferred to
 Fixed Allocations to support the Protected Principal Value and/or the Enhanced
 Protected Principal Value during periods of market declines, low interest
 rates, and/or as the program nears its maturity date, less of your Account
 Value may be available to participate in the investment experience of the
 Sub-accounts if there is a subsequent market recovery. During periods closer
 to the maturity date of the base guarantee or any enhanced guarantee, or any
 anniversary of such maturity date(s), a significant portion of your Account
 Value may be allocated to Fixed Allocations to support any applicable
 guaranteed amount(s). If your Account Value is less than the reallocation
 trigger and new Fixed Allocations must be established during periods where the
 interest rate(s) being credited to such Fixed Allocations is low, a larger
 portion of your Account Value may need to be transferred to Fixed Allocations
 to support the applicable guaranteed amount(s), causing less of your Account
 Value to be available to participate in the investment experience of the
 Sub-accounts.

   Separate Fixed Allocations may be established in support of the Protected
Principal Value and the Enhanced Protected Principal Value (if elected). There
may also be circumstances when a Fixed Allocation will be established only in
support of the Protected Principal Value or the Enhanced Protected Principal
Value. If you elect an enhanced guarantee, it is more likely that a portion of
your Account Value may be allocated to Fixed Allocations and will remain
allocated for a longer period of time to support the Enhanced Protected
Principal Value, even during a period of positive market performance and/or
under circumstances where Fixed Allocations would not be necessary to support
the Protected Principal Value. Further, there may be circumstances where Fixed
Allocations in support of the Protected Principal Value or Enhanced Protected
Principal Value are transferred to the Sub-accounts differently than each other
because of the different guarantees they support.
   American Skandia uses an allocation mechanism based on assumptions of
expected and maximum market volatility, interest rates and time left to the
maturity of the program to determine the reallocation trigger. The allocation
mechanism is used to determine the allocation of Account Value between Fixed
Allocations and the Sub-accounts you choose. American Skandia reserves the
right to change the allocation mechanism and the reallocation trigger at its
discretion, subject to regulatory approval where required. Changes to the
allocation mechanism and/or the reallocation trigger may be applied to existing
programs where allowed by law.

ELECTION OF THE PROGRAM
The Guaranteed Return Option Plus program can be elected at the time that you
purchase your Annuity, or on any Valuation Day thereafter (prior to
annuitization). If you elect the program after the Issue Date of your Annuity,
the program will be effective as of the Valuation Day that we receive the
required documentation in good order at our home office, and the guaranteed
amount will be based on your Account Value as of that date. If you previously
elected the Guaranteed Return Option program and wish to elect the Guaranteed
Return Option Plus program, your prior Guaranteed Return Option program will be
terminated. Termination of the Guaranteed Return Option for the purpose of
electing the Guaranteed Return Option Plus will be treated as any other
termination of the Guaranteed Return Option (see below), including the
termination of any guaranteed amount, and application of any applicable Market
Value Adjustment when amounts are transferred to the Sub-accounts as a result
of the termination. The


                                      43




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Living Benefit Programs continued

Guaranteed Return Option Plus program will then be added to your Annuity based
on the current Account Value.

TERMINATION OF THE PROGRAM
You can elect to terminate the enhanced guarantee but maintain the protection
provided by the base guarantee. You also can terminate the Guaranteed Return
Option Plus program entirely. If you terminate the program entirely, you can
subsequently elect to participate in the program again (based on the Account
Value on that date) by furnishing the documentation we require. In a rising
market, you could, for example, terminate the program on a given Valuation Day
and two weeks later reinstate the program with a higher base guarantee (and a
new maturity date). However, your ability to reinstate the program is limited
by the following: (A) in any Annuity Year, we do not permit more than two
program elections (including any election made effective on the Annuity issue
date and any election made by a surviving spouse) and (B) a program
reinstatement cannot be effected on the same business day on which a program
termination was effected. Upon termination, any Account Value in the Fixed
Allocations will be transferred to the Sub-accounts pro-rata based on the
Account Values in such Sub-accounts, or in accordance with any effective asset
allocation program. A Market Value Adjustment will apply.
   The program will terminate automatically upon: (a) the death of the Owner or
the Annuitant (in an entity owned contract); (b) as of the date Account Value
is applied to begin annuity payments; or (c) upon full surrender of the
Annuity. If you elect to terminate the program, the Guaranteed Return Option
Plus will no longer provide any guarantees. The surviving spouse may elect the
benefit at any time, subject to the limitations described above, after the
death of the Annuity Owner. The surviving spouse's election will be effective
on the Valuation Day that we receive the required documentation in good order
at our home office, and the Account Value on that Valuation Day will be the
Protected Principal Value.
   The charge for the Guaranteed Return Option Plus program will no longer be
deducted from your Account Value upon termination of the program.

SPECIAL CONSIDERATIONS UNDER THE GUARANTEED RETURN OPTION PLUS
This program is subject to certain rules and restrictions, including, but not
limited to the following:

.   Upon inception of the program, 100% of your Account Value must be allocated
    to the Sub-accounts. No Fixed Allocations may be in effect as of the date
    that you elect to participate in the program. However, the reallocation
    trigger may transfer Account Value to Fixed Allocations as of the effective
    date of the program under some circumstances.

.   You cannot allocate any portion of Purchase Payments (including any Credits
    applied to such Purchase Payments under Optimum Plus) or transfer Account
    Value to or from a Fixed Allocation while participating in the program;
    however, all or a portion of any Purchase Payments (including any Credits
    applied to such Purchase Payments under Optimum Plus) may be allocated by
    us to Fixed Allocations to support the amount guaranteed. You cannot
    participate in any dollar cost averaging program that transfers Account
    Value from a Fixed Allocation to a Sub-account.
.   Transfers from Fixed Allocations made as a result of the allocation
    mechanism under the program will be subject to the Market Value Adjustment
    formula under an Annuity; however, the 0.10% liquidity factor in the
    formula will not apply. A Market Value Adjustment may be either positive or
    negative. Transfer amounts will be taken from the most recently established
    Fixed Allocation.
.   Transfers from the Sub-accounts to Fixed Allocations or from Fixed
    Allocations to the Sub-accounts under the program will not count toward the
    maximum number of free transfers allowable under an Annuity.
.   Any amounts applied to your Account Value by American Skandia on the
    maturity date or any anniversary of the maturity date will not be treated
    as "investment in the contract" for income tax purposes.
.   Low interest rates may require allocation to Fixed Allocations even when
    the current Account Value exceeds the guarantee.
.   As the time remaining until the applicable maturity date gradually
    decreases the program will become increasingly sensitive to moves to Fixed
    Allocations.
.   We currently limit the Sub-accounts in which you may allocate Account Value
    if you participate in this program. We reserve the right to transfer any
    Account Value in a prohibited investment option to an eligible investment
    option. Should we prohibit access to any investment option, any transfers
    required to move Account Value to eligible investment options will not be
    counted in determining the number of free transfers during an Annuity Year.
    We may also require that you allocate your Account Value according to an
    asset allocation model.

CHARGES UNDER THE PROGRAM
We deduct a charge equal to 0.25% of the average daily net assets of the
Sub-accounts for participation in the Guaranteed


                                      44




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Return Option Plus program. The annual charge is deducted daily. Account Value
allocated to Fixed Allocations under the program is not subject to the charge.
The charge is deducted to compensate American Skandia for: (a) the risk that
your Account Value on the maturity date is less than the amount guaranteed; and
(b) administration of the program.

GUARANTEED RETURN OPTION (GRO)

 The Guaranteed Return Option described below is offered only in those
 jurisdictions where we have not yet received regulatory approval for the
 Guaranteed Return Option Plus as of the date the election of the option is
 made. Certain terms and conditions may differ between jurisdictions. The
 program can be elected by new purchasers on the Issue Date of their Annuity,
 and can be elected by existing Annuity Owners on either the anniversary of the
 Issue Date of their Annuity or on a date other than that anniversary, as
 described below under "Election of the Program". The Guaranteed Return Option
 is not available if you elect the GRO Plus rider, the Guaranteed Minimum
 Withdrawal Benefit rider, the Guaranteed Minimum Income Benefit rider, the
 Lifetime Five Income Benefit rider, the Spousal Lifetime Five Income Benefit
 rider, the Highest Daily Value Death Benefit, or the Dollar Cost Averaging
 program if it involves transfers out of the Fixed Allocations.

   We offer a program that, after a seven-year period following commencement of
the program (we refer to the end of that period as the "maturity date")
guarantees your Account Value will not be less than your Account Value on the
effective date of your program (called the "Protected Principal Value").
   The program monitors your Account Value daily and, if necessary,
systematically transfers amounts between the Sub-accounts you choose and the
Fixed Allocation used to support the Protected Principal Value. The program may
be appropriate if you wish to protect a principal amount against market
downturns as of a specific date in the future, but also wish to invest in the
Sub-accounts to participate in market performance. There is an additional
charge if you elect the Guaranteed Return Option program.
   The guarantee provided by the program exists only on the applicable maturity
date. However, due to the ongoing monitoring of your Account Value and the
transfer of Account Value between the Sub-accounts and the Fixed Allocation to
support our future guarantee, the program may provide some protection from
signifi-cant market losses if you choose to surrender your Annuity or begin
receiving annuity payments prior to a maturity date. For this same reason, the
program may limit your ability to benefit from market increases while it is in
effect.

KEY FEATURE -- PROTECTED PRINCIPAL VALUE
.   Under the GRO option, American Skandia guarantees that on the maturity
    date, your Account Value will be no less than the Protected Principal
    Value. On the maturity date if your Account Value is below the Protected
    Principal Value, American Skandia will apply additional amounts to your
    Annuity from its general account to increase your Account Value to be equal
    to the Protected Principal Value.
   Any amounts added to your Annuity to support our guarantee under the program
will be applied to the Fixed Allocation first and then to the Sub-accounts pro
rata, based on your most recent allocation instructions in accordance with the
allocation mechanism we use under the program. We will notify you of any
amounts added to your Annuity under the program. If our assumptions are correct
and the operations relating to the administration of the program work properly,
we do not expect that we will need to add additional amounts to an Annuity. The
Protected Principal Value is generally referred to as the "Guaranteed Amount"
in the rider we issue for this benefit.

KEY FEATURE -- ALLOCATION OF ACCOUNT VALUE
Account Value is transferred to and maintained in a Fixed Allocation to the
extent we, in our sole discretion, deem it is necessary to support our
guarantee under the program. We monitor fluctuations in your Account Value each
Valuation Day, as well as the prevailing interest rate on the Fixed Allocation,
the remaining duration until the applicable maturity date and the amount of
Account Value allocated to the Fixed Allocation relative to a "reallocation
trigger", which determines whether Account Value must be transferred to or from
the Fixed Allocation. While you are not notified when your Account Value
reaches a reallocation trigger, you will receive a confirmation statement
indicating the transfer of a portion of your Account Value either to or from
the Fixed Allocation.

.   If your Account Value is greater than or equal to the reallocation trigger,
    your Account Value in the Sub-accounts will remain allocated according to
    your most recent instructions. If a portion of Account Value was previously
    allocated to the Fixed Allocation to support the guaranteed amount, all or
    a portion of those amounts may


                                      45




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Living Benefit Programs continued

  be transferred from the Fixed Allocation and re-allocated to the Sub-accounts
   pro-rata according to your most recent allocation instructions (including
   the model allocations under any asset allocation program you may have
   elected). A Market Value Adjustment will apply when we reallocate Account
   Value from the Fixed Allocation to the Sub-accounts, which may result in a
   decrease or increase in your Account Value.

.   If your Account Value is less than the reallocation trigger, a portion of
    your Account Value in the Sub-accounts will be transferred from your
    Sub-accounts pro-rata according to your allocations to a new Fixed
    Allocation to support the guaranteed amount. The new Fixed Allocation will
    have a Guarantee Period equal to the time remaining until the applicable
    maturity date. The Account Value allocated to the new Fixed Allocation will
    be credited with the fixed interest rate then being credited to a new Fixed
    Allocation maturing on the applicable maturity date (rounded to the next
    highest yearly duration). The Account Value will remain invested in the
    Fixed Allocation until the maturity date unless, at an earlier date, your
    Account Value is greater than or equal to the reallocation trigger and,
    therefore, amounts can be transferred to the Sub-accounts while maintaining
    the guaranteed protection under the program (as described above).

 If a significant amount of your Account Value is systematically transferred to
 the Fixed Allocation to support the Protected Principal Value during periods
 of market declines, low interest rates, and/or as the program nears its
 maturity date, less of your Account Value may be available to participate in
 the investment experience of the Sub-accounts if there is a subsequent market
 recovery. During periods closer to the maturity date of the guarantee a
 significant portion of your Account Value may be allocated to the Fixed
 Allocation to support any applicable guaranteed amount. If your Account Value
 is less than the reallocation trigger and a new Fixed Allocation must be
 established during periods where the interest rate being credited to such
 Fixed Allocation is low, a larger portion of your Account Value may need to be
 transferred to the Fixed Allocation to support the guaranteed amount, causing
 less of your Account Value to be available to participate in the investment
 experience of the Sub-accounts.

   American Skandia uses an allocation mechanism based on assumptions of
expected and maximum market volatility, interest rates and time left to the
maturity of the program to determine the reallocation trigger. The allocation
mechanism is used to determine the allocation of Account Value between the
Fixed Allocation and the Sub-accounts you choose. American Skandia reserves the
right to change the allocation mechanism and the reallocation trigger at its
discretion, subject to regulatory approval where required. Changes to the
allocation mechanism and/or the reallocation trigger may be applied to existing
programs where allowed by law.

ELECTION OF THE PROGRAM
The Guaranteed Return Option can be elected at the time that you purchase your
Annuity, or on any Valuation Day thereafter (prior to annuitization). If you
elect the program after the Issue Date of your Annuity, the program will be
effective as of the Valuation Day that we receive the required documentation in
good order at our home office, and the Protected Principal Value will be based
on your Account Value as of that date.

<R>
RESTART OF THE PROGRAM
Once each Annuity Year you may request to restart the Program. Such a request
is an election by you to terminate the existing Program and start a new one.
Restarts only take effect on anniversaries of the Issue Date. To make such a
request for a restart, you must notify us. If we accept your request, we then
terminate the existing Program as of that valuation period, if it is an
anniversary of the Issue Date, or, if not, as of the next following anniversary
of the Issue Date. The new Program starts at that time. The initial Protected
Principal Value for the new Program is the Account Value as of the effective
date of the new Program. Unless you tell us otherwise, the duration of the new
Program will be the same as that for the existing Program. However, if we do
not then make that duration available, you must elect from those we make
available at that time.
   As part of terminating the existing Program, we transfer any amounts in
Fixed Allocations, subject to a Market Value Adjustment, to the Sub-accounts on
a pro-rata basis. If your entire Account Value was then in Fixed Allocations,
you must first provide us instructions as to how to allocate the transferred
Account Value among the Sub-accounts.
</R>

TERMINATION OF THE PROGRAM
The Annuity Owner also can terminate the Guaranteed Return Option program. Upon
termination, any Account Value in the Fixed Allocation will be transferred to
the Sub-accounts pro-rata based


                                      46




AMERICAN SKANDIA ANNUITIES PROSPECTUS

on the Account Values in such Sub-accounts, or in accordance with any effective
asset allocation program. A Market Value Adjustment will apply.
   The program will terminate automatically upon: (a) the death of the Owner or
the Annuitant (in an entity owned contract); (b) as of the date Account Value
is applied to begin annuity payments; or (c) upon full surrender of your
Annuity. If you elect to terminate the program, the Guaranteed Return Option
will no longer provide any guarantees. If the surviving spouse assumes your
Annuity, he/ she may re-elect the benefit on any anniversary of the Issue Date
of the Annuity or, if the deceased Owner had not previously elected the
benefit, may elect the benefit at any time. The surviving spouse's election
will be effective on the Valuation Day that we receive the required
documentation in good order at our home office, and the Account Value on that
Valuation Day will be the Protected Principal Value.
   The charge for the Guaranteed Return Option program will no longer be
deducted from your Account Value upon termination of the program.

SPECIAL CONSIDERATIONS UNDER THE GUARANTEED RETURN OPTION
This program is subject to certain rules and restrictions, including, but not
limited to the following:
.   Upon inception of the program, 100% of your Account Value must be allocated
    to the Sub-accounts. The Fixed Allocation may not be in effect as of the
    date that you elect to participate in the program. However, the
    reallocation trigger may transfer Account Value to the Fixed Allocation as
    of the effective date of the program under some circumstances.
.   Annuity Owners cannot allocate any portion of Purchase Payments (including
    any Credits applied to such Purchase Payments under Optimum Plus) or
    transfer Account Value to or from the Fixed Allocation while participating
    in the program; however, all or a portion of any Purchase Payments
    (including any Credits applied to such Purchase Payments under Optimum
    Plus) may be allocated by us to the Fixed Allocation to support the amount
    guaranteed. You cannot participate in any dollar cost averaging program
    that transfers Account Value from a Fixed Allocation to a Sub-account.
.   Transfers from the Fixed Allocation made as a result of the allocation
    mechanism under the program will be subject to the Market Value Adjustment
    formula under an Annuity; however, the 0.10% liquidity factor in the
    formula will not apply. A Market Value Adjustment may be either positive or
    negative. Transfer amounts will be taken from the most recently established
    Fixed Allocation.
.   Transfers from the Sub-accounts to the Fixed Allocation or from the Fixed
    Allocation to the Sub-accounts under the program will not count toward the
    maximum number of free transfers allowable under an Annuity.
.   Any amounts applied to your Account Value by American Skandia on the
    maturity date or any anniversary of the maturity date will not be treated
    as "investment in the contract" for income tax purposes.
.   Low interest rates may require allocation to the Fixed Allocation even when
    the current Account Value exceeds the guarantee.
.   As the time remaining until the applicable maturity date gradually
    decreases the program will become increasingly sensitive to moves to the
    Fixed Allocation.
.   We currently limit the Sub-accounts in which you may allocate Account Value
    if you participate in this program. We reserve the right to transfer any
    Account Value in a prohibited investment option to an eligible investment
    option. Should we prohibit access to any investment option, any transfers
    required to move Account Value to eligible investment options will not be
    counted in determining the number of free transfers during an Annuity Year.
    We may also require that you allocate your Account Value according to an
    asset allocation model.

CHARGES UNDER THE PROGRAM
<R>
We deduct a charge equal to 0.25% of the average daily net assets of the
Sub-accounts for participation in the Guaranteed Return Option program. The
annual charge is deducted daily. Account Value allocated to the Fixed
Allocation under the program is not subject to the charge. The charge is
deducted to compensate American Skandia for: (a) the risk that your Account
Value on the maturity date is less than the amount guaranteed; and
(b) administration of the program.
</R>


                                      47




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Living Benefit Programs continued


GUARANTEED MINIMUM WITHDRAWAL BENEFIT (GMWB)

<R>
 The Guaranteed Minimum Withdrawal Benefit program described below is only
 being offered in those jurisdictions where we have received regulatory
 approval and will be offered subsequently in other jurisdictions when we
 receive regulatory approval in those jurisdictions. Certain terms and
 conditions may differ between jurisdictions once approved. Currently, the
 program can only be elected by new purchasers on the Issue Date of their
 Annuity. We may offer the program to existing Annuity Owners in the future,
 subject to our eligibility rules and restrictions. The Guaranteed Minimum
 Withdrawal Benefit program is not available if you elect the Guaranteed Return
 Option, Guaranteed Return Option Plus, the Guaranteed Minimum Income Benefit
 rider or the Lifetime Five Income Benefit or the Spousal Lifetime Five Income
 Benefit.
</R>

   We offer a program that guarantees your ability to withdraw amounts equal to
an initial principal value (called the "Protected Value"), regardless of the
impact of market performance on your Account Value, subject to our program
rules regarding the timing and amount of withdrawals. The program may be
appropriate if you intend to make periodic withdrawals from your Annuity and
wish to ensure that market performance will not affect your ability to protect
your principal. You are not required to make withdrawals as part of the program
-- the guarantee is not lost if you withdraw less than the maximum allowable
amount of principal each year under the rules of the program. There is an
additional charge if you elect the GMWB program; however, the charge may be
waived under certain circumstances described below.

KEY FEATURE -- PROTECTED VALUE
The Protected Value is the total amount that we guarantee will be available to
you through withdrawals from your Annuity and/or benefit payments, regardless
of the impact of market performance on your Account Value. The Protected Value
is reduced with each withdrawal you make until the Protected Value is reduced
to zero. When the Protected Value is reduced to zero due to your withdrawals,
the GMWB program terminates. Additionally, the Protected Value is used to
determine the maximum annual amount that you can withdraw from your Annuity,
called the Protected Annual Withdrawal Amount, without triggering an adjustment
in the Protected Value on a proportional basis. The Protected Value is referred
to as the "Benefit Base" in the rider we issue for this benefit.
   The Protected Value is determined as of the date you make your first
withdrawal under your Annuity following your election of the GMWB program. The
initial Protected Value is equal to the greater of (A) the Account Value on the
date you elect the GMWB program, plus any additional Purchase Payments (plus
any Credits applied to such Purchase Payments under Optimum Plus) before the
date of your first withdrawal; or (B) the Account Value as of the date of the
first withdrawal from your Annuity. The Protected Value may be enhanced by
increases in your Account Value due to market performance during the period
between your election of the GMWB program and the date of your first withdrawal.
.   If you elect the GMWB program at the time you purchase your Annuity, the
    Account Value will be your initial Purchase Payment (plus any Credits
    applied to such Purchase Payments under Optimum Plus).
.   If we offer the GMWB program to existing Annuity Owners, the Account Value
    on the anniversary of the Issue Date of your Annuity following your
    election of the GMWB program will be used to determine the initial
    Protected Value.
.  If you make additional Purchase Payments after your first withdrawal, the
   Protected Value will be increased by the amount of the additional Purchase
   Payment (plus any Credits applied to such Purchase Payments under Optimum
   Plus).
   You may elect to step-up your Protected Value if, due to positive market
performance, your Account Value is greater than the Protected Value. You are
eligible to step-up the Protected Value on or after the 5/th /Annuity
anniversary following the first withdrawal under the GMWB program. The
Protected Value can be stepped up again on or after the 5/th /Annuity
anniversary following the preceding step-up. If you elect to step-up the
Protected Value, you must do so during the 30-day period prior to your
eligibility date. If you elect to step-up the Protected Value under the
program, and on the date you elect to step-up, the charges under the GMWB
program have changed for new purchasers, your program may be subject to the new
charge going forward.
   Upon election of the step-up, we reset the Protected Value to be equal to
the then current Account Value. For example, assume your initial Protected
Value was $100,000 and you have made cumulative withdrawals of $40,000,
reducing the Protected Value to $60,000. On the date you are eligible to
step-up the Protected Value, your Account Value is equal to $75,000. You could
elect to


                                      48




AMERICAN SKANDIA ANNUITIES PROSPECTUS

step-up the Protected Value to $75,000 on the date you are eligible. Upon
election of the step-up, we also reset the Protected Annual Withdrawal Amount
(discussed immediately below) to be equal to the greater of (A) the Protected
Annual Withdrawal Amount immediately prior to the reset; and (B) 7% of the
Protected Value immediately after the reset.

KEY FEATURE -- PROTECTED ANNUAL WITHDRAWAL AMOUNT
The initial Protected Annual Withdrawal Amount is equal to 7% of the Protected
Value. Under the GMWB program, if your cumulative withdrawals each Annuity Year
are less than or equal to the Protected Annual Withdrawal Amount, your
Protected Value will be reduced on a "dollar-for-dollar" basis (the Protected
Value is reduced by the actual amount of the withdrawal, including any CDSC or
MVA that may apply). Cumulative withdrawals in any Annuity Year that exceed the
Protected Annual Withdrawal Amount trigger a proportional adjustment to both
the Protected Value and the Protected Annual Withdrawal Amount, as described in
the rider for this benefit (see the examples of this calculation below). The
Protected Annual Withdrawal Amount is referred to as the "Maximum Annual
Benefit" in the rider we issue for this benefit.
   The GMWB program does not affect your ability to make withdrawals under your
Annuity or limit your ability to request withdrawals that exceed the Protected
Annual Withdrawal Amount. You are not required to withdraw all or any portion
of the Protected Annual Withdrawal Amount each Annuity Year.
.   If, cumulatively, you withdraw an amount less than the Protected Annual
    Withdrawal Amount in any Annuity Year, you cannot carry-over the unused
    portion of the Protected Annual Withdrawal Amount to subsequent Annuity
    Years. However, because the Protected Value is only reduced by the actual
    amount of withdrawals you make under these circumstances, any unused
    Protected Annual Withdrawal Amount may extend the period of time until the
    remaining Protected Value is reduced to zero.
.   Additional Purchase Payments will increase the Protected Annual Withdrawal
    Amount by 7% of the applicable Purchase Payment (and any Credits we apply
    to such Purchase Payments under Optimum Plus).
.   If the Protected Annual Withdrawal Amount after an adjustment exceeds the
    Protected Value, the Protected Annual Withdrawal Amount will be set equal
    to the Protected Value.
<R>
   The following examples of dollar-for-dollar and proportional reductions and
the reset of the Maximum Annual Benefit assume that: 1.) the Issue Date and the
effective date of the GMWB program are October 13, 2005; 2.) an initial
Purchase Payment of $250,000 (includes any Credits in the case of Optimum
Plus); 3.) a Protected Value of $250,000; and 4.) a Protected Annual Withdrawal
Amount of $17,500 (7% of $250,000). The values set forth here are purely
hypothetical and do not reflect the charge for GMWB or any other fees and
charges.
</R>

EXAMPLE 1. DOLLAR-FOR-DOLLAR REDUCTION
<R>
A $10,000 withdrawal is taken on November 13, 2005 (in the first Annuity Year).
No prior withdrawals have been taken. As the amount withdrawn is less than the
Protected Annual Withdrawal Amount:
</R>
.   The Protected Value is reduced by the amount withdrawn (i.e., by $10,000,
    from $250,000 to $240,000).
.   The remaining Protected Annual Withdrawal Amount for the balance of the
    first Annuity Year is also reduced by the amount withdrawn (from $17,500 to
    $7,500).

EXAMPLE 2. DOLLAR-FOR-DOLLAR AND PROPORTIONAL REDUCTIONS
A second $10,000 withdrawal is taken on December 13, 2005 (still within the
first Annuity Year). The Account Value immediately before the withdrawal is
$220,000. As the amount withdrawn exceeds the remaining Protected Annual
Withdrawal Amount of $7,500 from Example 1:
.   the Protected Value is first reduced by the remaining Protected Annual
    Withdrawal Amount (from $240,000 to $232,500);
.   The result is then further reduced by the ratio of A to B, where:
 .   A is the amount withdrawn less the remaining Protected Annual Withdrawal
     Amount ($10,000 - $7,500, or $2,500).
 .   B is the Account Value less the remaining Protected Annual Withdrawal
     Amount ($220,000 - $7,500, or $212,500).
   The resulting Protected Value is: $232,500 X (1 - $2,500 / $212,500), or
$229,764.71.
.   the Protected Annual Withdrawal Amount is also reduced by the ratio of A to
    B: The resulting Protected Annual Withdrawal Amount is:
   $17,500 X (1 - $2,500 / $212,500), or $17,294.12.
.   The remaining Protected Annual Withdrawal Amount is set to zero (0) for the
    balance of the first Annuity Year.


                                      49




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Living Benefit Programs continued


EXAMPLE 3. RESET OF THE MAXIMUM ANNUAL BENEFIT
A $10,000 withdrawal is made on October 13, 2006 (second Annuity Year). The
remaining Protected Annual Withdrawal Amount has been reset to the Protected
Annual Withdrawal Amount of $17,294.12 from Example 2. As the amount withdrawn
is less than the remaining Protected Annual Withdrawal Amount:
.   the Protected Value is reduced by the amount withdrawn (i.e., reduced by
    $10,000, from $229,764.71 to $219,764.71).
.   The remaining Protected Annual Withdrawal Amount for the balance of the
    second Annuity Year is also reduced by the amount withdrawn (from
    $17,294.12 to $7,294.12).

BENEFITS UNDER THE GMWB PROGRAM
.   In addition to any withdrawals you make under the GMWB program, market
    performance may reduce your Account Value. If your Account Value is equal
    to zero, and you have not received all of your Protected Value in the form
    of withdrawals from your Annuity, we will continue to make payments equal
    to the remaining Protected Value in the form of fixed, periodic payments
    until the remainder of the Protected Value is paid, at which time the rider
    terminates. The fixed, periodic payments will each be equal to the
    Protected Annual Withdrawal Amount, except for the last payment which may
    be equal to the remaining Protected Value. We will determine the duration
    for which periodic payments will continue by dividing the Protected Value
    by the Protected Annual Withdrawal Amount. You will not have the right to
    make additional Purchase Payments or receive the remaining Protected Value
    in a lump sum. You can elect the frequency of payments, subject to our
    rules then in effect.
.   If the death benefit under your Annuity becomes payable before you have
    received all of your Protected Value in the form of withdrawals from your
    Annuity, your Beneficiary has the option to elect to receive the remaining
    Protected Value as an alternate death benefit payout in lieu of the amount
    payable under any other death benefit provided under your Annuity. The
    remaining Protected Value will be payable in the form of fixed, periodic
    payments. Your beneficiary can elect the frequency of payments, subject to
    our rules then in effect. We will determine the duration for which periodic
    payments will continue by dividing the Protected Value by the Protected
    Annual Withdrawal Amount. The Protected Value is not equal to the Account
    Value for purposes of the Annuity's other death benefit options. The GMWB
    program does not increase or decrease the amount otherwise payable under
    the Annuity's other death benefit options. Generally, the GMWB program
    would be of value to your Beneficiary only when the Protected Value at
    death exceeds any other amount available as a death benefit.
.   If you elect to begin receiving annuity payments before you have received
    all of your Protected Value in the form of withdrawals from your Annuity,
    an additional annuity payment option will be available that makes fixed
    annuity payments for a certain period, determined by dividing the Protected
    Value by the Protected Annual Withdrawal Amount. If you elect to receive
    annuity payments calculated in this manner, the assumed interest rate used
    to calculate such payments will be 0%, which is less than the assumed
    interest rate on other annuity payment options we offer. This 0% assumed
    interest rate results in lower annuity payments than what would have been
    paid if the assumed interest rate was higher than 0%. You can also elect to
    terminate the GMWB program and begin receiving annuity payments based on
    your then current Account Value (not the remaining Protected Value) under
    any of the available annuity payment options.

OTHER IMPORTANT CONSIDERATIONS
.   Withdrawals under the GMWB program are subject to all of the terms and
    conditions of your Annuity, including any CDSC and MVA that may apply.
.   Withdrawals made while the GMWB program is in effect will be treated, for
    tax purposes, in the same way as any other withdrawals under your Annuity.
.   The GMWB program does not directly affect your Annuity's Account Value or
    Surrender Value, but any withdrawal will decrease the Account Value by the
    amount of the withdrawal. If you surrender your Annuity, you will receive
    the current Surrender Value, not the Protected Value.
.   You can make withdrawals from your Annuity while your Account Value is
    greater than zero without purchasing the GMWB program. The GMWB program
    provides a guarantee that if your Account Value declines due to market
    performance, you will be able to receive your Protected Value in the form
    of periodic benefit payments.
.   We currently limit the Sub-accounts in which you may allocate Account Value
    if you participate in this program. We reserve the right to transfer any
    Account Value in a prohibited investment option to an eligible investment
    option. Should we prohibit access to any investment option, any transfers
    required to move Account Value to eligible investment


                                      50




AMERICAN SKANDIA ANNUITIES PROSPECTUS

  options will not be counted in determining the number of free transfers
   during an Annuity Year. We may also require that you allocate your Account
   Value according to an asset allocation model.

ELECTION OF THE PROGRAM
Currently, the GMWB program can only be elected at the time that you purchase
your Annuity. In the future, we may offer existing Annuity Owners the option to
elect the GMWB program after the Issue Date of their Annuity, subject to our
eligibility rules and restrictions. If you elect the GMWB program after the
Issue Date of your Annuity, the program will be effective as of the next
anniversary date. Your Account Value as of such anniversary date will be used
to calculate the initial Protected Value and the initial Protected Annual
Withdrawal Amount.
   We reserve the right to restrict the maximum amount of Protected Value that
may be covered under the GMWB program under this Annuity or any other annuities
that you own that are issued by American Skandia or its affiliated companies.

TERMINATION OF THE PROGRAM
The program terminates automatically when your Protected Value reaches zero
based on your withdrawals. You may terminate the program at any time by
notifying us. If you terminate the program, any guarantee provided by the
benefit will terminate as of the date the termination is effective. The program
terminates upon your surrender of your Annuity, upon due proof of death (unless
your surviving spouse elects to continue your Annuity and the GMWB program or
your Beneficiary elects to receive the amounts payable under the GMWB program
in lieu of the death benefit) or upon your election to begin receiving annuity
payments.
   The charge for the GMWB program will no longer be deducted from your Account
Value upon termination of the program.

CHARGES UNDER THE PROGRAM
Currently, we deduct a charge equal to 0.35% of the average daily net assets of
the Sub-accounts per year to purchase the GMWB program. The annual charge is
deducted daily. Account Value allocated to Fixed Allocations under the program
is not subject to the charge.
.   If, during the seven years following the effective date of the program, you
    do not make any withdrawals, and do not make any additional Purchase
    Payments after a five-year period following the effective date of the
    program, the program will remain in effect; however, we will waive the
    annual charge going forward. If you make an additional Purchase Payment
    following the waiver of the annual charge, we will begin charging for the
    program. After year seven (7) following the effective date of the program,
    withdrawals will not cause a charge to be re-imposed.
.   If you elect to step-up the Protected Value under the program, and on the
    date you elect to step-up, the charges under the program have changed for
    new purchasers, your program may be subject to the new charge level for the
    benefit.

<R>
ADDITIONAL TAX CONSIDERATIONS FOR QUALIFIED CONTRACTS/ARRANGEMENTS
If you purchase an Annuity as an investment vehicle for "qualified"
investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or
employer plan under Code Section 401(a), the minimum distribution rules under
the Code require that you begin receiving periodic amounts from your Annuity
beginning after age 70 1/2. For a Tax Sheltered Annuity or a 401(a) plan for
which the participant is not a greater than 5% owner of the employer, this
required beginning date can generally be deferred to retirement, if later. Roth
IRAs are not subject to these rules during the owner's lifetime. The amount
required under the Code may exceed the Protected Annual Withdrawal Amount,
which will cause us to recalculate the Protected Value and the Protected Annual
Withdrawal Amount, resulting in a lower amount payable in future Annuity Years.
In addition, the amount and duration of payments under the annuity payment and
death benefit provisions may be adjusted so that the payments do not trigger
any penalty or excise taxes due to tax considerations such as minimum
distribution requirements.
</R>

GUARANTEED MINIMUM INCOME BENEFIT (GMIB)

 The Guaranteed Minimum Income Benefit program described below is only being
 offered in those juris-dictions where we have received regulatory approval,
 and will be offered subsequently in other jurisdictions when we receive
 regulatory approval in those jurisdictions. Certain terms and conditions may
 differ between jurisdictions once approved. Currently, the program can only be
 elected by new purchasers on the Issue Date of their Annuity. We may offer the
 program to existing Annuity Owners in the future, subject to our eligibility
 rules and restrictions. The Guaranteed Minimum Income Benefit program is not
 available if you elect any other optional living benefit.


                                      51




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Living Benefit Programs continued


   We offer a program that, after a seven-year waiting period, guarantees your
ability to begin receiving income from your Annuity in the form of annuity
payments based on a guaranteed minimum value (called the "Protected Income
Value") that increases after the waiting period begins, regardless of the
impact of market performance on your Account Value. The program may be
appropriate for you if you anticipate using your Annuity as a future source of
periodic fixed income payments for the remainder of your life and wish to
ensure that the basis upon which your income payments will be calculated will
achieve at least a minimum amount despite fluctuations in market performance.
There is an additional charge if you elect the GMIB program.

KEY FEATURE -- PROTECTED INCOME VALUE
The Protected Income Value is the minimum amount that we guarantee will be
available (net of any applicable tax charge), after a waiting period of at
least seven years, as a basis to begin receiving fixed annuity payments. The
Protected Income Value is initially established on the effective date of the
GMIB program and is equal to your Account Value on such date. Currently, since
the GMIB program may only be elected at issue, the effective date is the Issue
Date of your Annuity. The Protected Income Value is increased daily based on an
annual growth rate of 5%, subject to the limitations described below. The
Protected Income Value is referred to as the "Protected Value" in the rider we
issue for this benefit. The 5% annual growth rate is referred to as the
"Roll-Up Percentage" in the rider we issue for this benefit.
   The Protected Income Value is subject to a limit of 200% (2X) of the sum of
the Protected Income Value established on the effective date of the GMIB
program, or the effective date of any step-up value, plus any additional
Purchase Payments (and any Credit that is applied to such Purchase Payments in
the case of Optimum Plus) made after the waiting period begins ("Maximum
Protected Income Value"), minus the sum of any reductions in the Protected
Income Value due to withdrawals you make from your Annuity after the waiting
period begins.
.   Subject to the maximum age/durational limits described immediately below,
    we will no longer increase the Protected Income Value by the 5% annual
    growth rate once you reach the Maximum Protected Income Value. However, we
    will increase the Protected Income Value by the amount of any additional
    Purchase Payments after you reach the Maximum Protected Income Value.
    Further, if you make withdrawals after you reach the Maximum Protected
    Income Value, we will reduce the Protected Income Value and the Maximum
    Protected Income Value by the proportional impact of the withdrawal on your
    Account Value.
.   Subject to the Maximum Protected Income Value, we will no longer increase
    the Protected Income Value by the 5% annual growth rate after the later of
    the anniversary date on or immediately following the Annuitant's 80/th
    /birthday or the 7/th /anniversary of the later of the effective date of
    the GMIB program or the effective date of the most recent step-up. However,
    we will increase the Protected Income Value by the amount of any additional
    Purchase Payments (and any Credit that is applied to such Purchase Payments
    in the case of Optimum Plus). Further, if you make withdrawals after the
    Annuitant reaches the maximum age/duration limits, we will reduce the
    Protected Income Value and the Maximum Protected Income Value by the
    proportional impact of the withdrawal on your Account Value.
.   Subject to the Maximum Protected Income Value, if you make an additional
    Purchase Payment, we will increase the Protected Income Value by the amount
    of the Purchase Payment (and any Credit that is applied to such Purchase
    Payment in the case of Optimum Plus) and will apply the 5% annual growth
    rate on the new amount from the date the Purchase Payment is applied.
.   As described below, after the waiting period begins, cumulative withdrawals
    each Annuity Year that are up to 5% of the Protected Income Value on the
    prior anniversary of your Annuity will reduce the Protected Income Value by
    the amount of the withdrawal. Cumulative withdrawals each Annuity Year in
    excess of 5% of the Protected Income Value on the prior anniversary of your
    Annuity will reduce the Protected Income Value proportionately. All
    withdrawals after the Maximum Protected Income Value is reached will reduce
    the Protected Income Value proportionately. The 5% annual growth rate will
    be applied to the reduced Protected Income Value from the date of the
    withdrawal.
   Stepping-Up the Protected Income Value -- You may elect to "step-up" or
"reset" your Protected Income Value if your Account Value is greater than the
current Protected Income Value. Upon exercise of the step-up provision, your
initial Protected Income Value will be reset equal to your current Account
Value. From the date that you elect to step-up the Protected Income Value, we
will apply the 5% annual growth rate to the stepped-up Protected Income Value,
as described above. You can exercise the step-up provision twice while the GMIB
program is in effect, and only while the Annuitant is less than age 76.


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<R>
.   A new seven-year waiting period will be established upon the effective date
    of your election to step-up the Protected Income Value. You cannot exercise
    your right to begin receiving annuity payments under the GMIB program until
    the end of the new waiting period. In light of this waiting period upon
    resets, it is not recommended that you reset your GMIB if the required
    beginning date under IRS minimum distribution requirements would commence
    during the 7 year waiting period. See "Tax Considerations" section in this
    prospectus for additional information on IRS requirements.
</R>
.   The Maximum Protected Income Value will be reset as of the effective date
    of any step-up. The new Maximum Protected Income Value will be equal to
    200% of the sum of the Protected Income Value as of the effective date of
    the step-up plus any subsequent Purchase Payments (and any Credit that is
    applied to such Purchase Payments in the case of Optimum Plus), minus the
    impact of any withdrawals after the date of the step-up.
.   When determining the guaranteed annuity purchase rates for annuity payments
    under the GMIB program, we will apply such rates based on the number of
    years since the most recent step-up.
.   If you elect to step-up the Protected Income Value under the program, and
    on the date you elect to step-up, the charges under the GMIB program have
    changed for new purchasers, your program may be subject to the new charge
    going forward.
.   A step-up will increase the dollar-for-dollar limit on the anniversary of
    the Issue Date of the Annuity following such step-up.
   Impact of Withdrawals on the Protected Income Value -- Cumulative
withdrawals each Annuity Year up to 5% of the Protected Income Value will
reduce the Protected Income Value on a "dollar-for-dollar" basis (the Protected
Income Value is reduced by the actual amount of the withdrawal). Cumulative
withdrawals in any Annuity Year in excess of 5% of the Protected Income Value
will reduce the Protected Income Value proportionately (see the examples of
this calculation below). The 5% annual withdrawal amount is determined on each
anniversary of the Issue Date (or on the Issue Date for the first Annuity Year)
and applies to any withdrawals during the Annuity Year. This means that the
amount available for withdrawals each Annuity Year on a "dollar-for-dollar"
basis is adjusted on each Annuity anniversary to reflect changes in the
Protected Income Value during the prior Annuity Year.
<R>
   The following examples of dollar-for-dollar and proportional reductions
assume that: 1.) the Issue Date and the effective date of the GMIB program are
October 13, 2005; 2.) an initial Purchase Payment of $250,000 (includes any
Credits in the case of Optimum Plus); 3.) an initial Protected Income Value of
$250,000; and 4.) a dollar-for-dollar limit of $12,500 (5% of $250,000). The
values set forth here are purely hypothetical and do not reflect the charge for
GMIB or any other fees and charges.
</R>

EXAMPLE 1. DOLLAR-FOR-DOLLAR REDUCTION
A $10,000 withdrawal is taken on November 13, 2005 (in the first Annuity Year).
No prior withdrawals have been taken. Immediately prior to the withdrawal, the
Protected Income Value is $251,038.10 (the initial value accumulated for 31
days at an annual effective rate of 5%). As the amount withdrawn is less than
the dollar-for-dollar limit:
.   the Protected Income Value is reduced by the amount withdrawn (i.e., by
    $10,000, from $251,038.10 to $241,038.10).
.   The remaining dollar-for-dollar limit ("Remaining Limit") for the balance
    of the first Annuity Year is also reduced by the amount withdrawn (from
    $12,500 to $2,500).

EXAMPLE 2. DOLLAR-FOR-DOLLAR AND PROPORTIONAL REDUCTIONS
A second $10,000 withdrawal is taken on December 13, 2005 (still within the
first Annuity Year). Immediately before the withdrawal, the Account Value is
$220,000 and the Protected Income Value is $242,006.64. As the amount withdrawn
exceeds the Remaining Limit of $2,500 from Example 1:
.   the Protected Income Value is first reduced by the Remaining Limit (from
    $242,006.64 to $239,506.64);
.   The result is then further reduced by the ratio of A to B, where:
 .   A is the amount withdrawn less the Remaining Limit ($10,000 - $2,500, or
     $7,500).
 .   B is the Account Value less the Remaining Limit ($220,000 - $2,500, or
     $217,500).
   The resulting Protected Income Value is: $239,506.64 X (1 - $7,500 /
   $217,500), or $231,247.79.
.   The Remaining Limit is set to zero (0) for the balance of the first Annuity
    Year.

EXAMPLE 3. RESET OF THE DOLLAR-FOR-DOLLAR LIMIT
A $10,000 withdrawal is made on the first anniversary of the Issue Date,
October 13, 2006 (second Annuity Year). Prior to the withdrawal, the Protected
Income Value is $240,838.37. The Remaining Limit is reset to 5% of this amount,
or $12,041.92. As the amount withdrawn is less than the dollar-for-dollar limit:
.   the Protected Income Value is reduced by the amount withdrawn (i.e.,
    reduced by $10,000, from $240,838.37 to $230,838.37).


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Living Benefit Programs continued

.   The Remaining Limit for the balance of the second Annuity Year is also
    reduced by the amount withdrawn (from $12,041.92 to $2,041.92).

KEY FEATURE -- GMIB ANNUITY PAYMENTS
You can elect to apply the Protected Income Value to one of the available GMIB
Annuity Payment Options on any anniversary date following the initial waiting
period, or any subsequent waiting period established upon your election to
step-up the Protected Income Value. Once you have completed the waiting period,
you will have a 30-day period each year, prior to the Annuity anniversary,
during which you may elect to begin receiving annuity payments under one of the
available GMIB Annuity Payment Options. You must elect one of the GMIB Annuity
Payment Options by the anniversary of the Annuity's Issue Date on or
immediately following the Annuitant's 95/th /birthday, except for Annuities
used as a funding vehicle for an IRA, SEP IRA or 403(b), in which case you must
elect one of the GMIB Annuity Payment Options by the anniversary of the
Annuity's Issue Date on or immediately following the Annuitant's 92/nd
/birthday.
   The amount of each GMIB Annuity Payment will be determined based on the age
and, where permitted by law, sex of the Annuitant by applying the Protected
Income Value (net of any applicable tax charge that may be due) to the GMIB
Annuity Payment Option you choose. We use special annuity purchase rates to
calculate the amount of each payment due under the GMIB Annuity Payment
Options. These special rates for the GMIB Annuity Payment Options are
calculated using an assumed interest rate factor that provides for lower growth
in the value applied to produce annuity payments than if you elected an annuity
payment option that is not part of the GMIB program. These special rates also
are calculated using other factors such as "age setbacks" (use of an age lower
than the Annuitant's actual age) that result in lower payments than would
result if you elected an annuity payment option that is not part of the GMIB
program. Use of an age setback entails a longer assumed life for the Annuitant
which in turn results in lower annuity payments.
   On the date that you elect to begin receiving GMIB Annuity Payments, we
guarantee that your payments will be calculated based on your Account Value and
our then current annuity purchase rates if the payment amount calculated on
this basis would be higher than it would be based on the Protected Income Value
and the special GMIB annuity purchase rates.

GMIB ANNUITY PAYMENT OPTION 1 -- PAYMENTS FOR LIFE WITH A CERTAIN PERIOD
Under this option, monthly annuity payments will be made until the death of the
Annuitant. If the Annuitant dies before having received 120 monthly annuity
payments, the remainder of the 120 monthly annuity payments will be made to the
Beneficiary.

GMIB ANNUITY PAYMENT OPTION 2 -- PAYMENTS FOR JOINT LIVES WITH A CERTAIN PERIOD
Under this option, monthly annuity payments will be made until the death of
both the Annuitant and the Joint Annuitant. If the Annuitant and the Joint
Annuitant die before having received 120 monthly annuity payments, the
remainder of the 120 monthly annuity payments will be made to the Beneficiary.
.   If the Annuitant dies first, we will continue to make payments until the
    later of the death of the Joint Annuitant and the end of the period
    certain. However, if the Joint Annuitant is still receiving annuity
    payments following the end of the certain period, we will reduce the amount
    of each subsequent payment to 50% of the original payment amount.
.   If the Joint Annuitant dies first, we will continue to make payments until
    the later of the death of the Annuitant and the end of the period certain.
   You cannot withdraw your Account Value or the Protected Income Value under
either GMIB Annuity Payment Option once annuity payments have begun. We may
make other payout frequencies available, such as quarterly, semi-annually or
annually.

OTHER IMPORTANT CONSIDERATIONS

.   You should note that GMIB is designed to provide a type of insurance that
    serves as a safety net only in the event your Account Value declines
    significantly due to negative investment performance. If your Account Value
    is not significantly affected by negative investment performance, it is
    unlikely that the purchase of the GMIB will result in your receiving larger
    annuity payments than if you had not purchased GMIB. This is because the
    assumptions that we use in computing the GMIB, such as the annuity purchase
    rates, (which include assumptions as to age-setbacks and assumed interest
    rates), are more conservative than the assumptions that we use in computing
    annuity payout options outside of GMIB. Therefore, you may generate higher
    income payments if you were to annuitize a lower Account Value at the
    current annuity purchase rates, than if you were to annuitize under the
    GMIB with a higher Protected Value than your Account Value but, at the
    annuity purchase rates guaranteed under the GMIB. The GMIB program


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AMERICAN SKANDIA ANNUITIES PROSPECTUS

  does not directly affect an Annuity's Account Value, Surrender Value or the
   amount payable under either the basic Death Benefit provision of the Annuity
   or any optional Death Benefit provision. If you surrender your Annuity, you
   will receive the current Surrender Value, not the Protected Income Value.
   The Protected Income Value is only applicable if you elect to begin
   receiving annuity payments under one of the GMIB annuity options after the
   waiting period.
.   Each Annuity offers other annuity payment options that you can elect which
    do not impose an additional charge, but which do not offer to guarantee a
    minimum value on which to make annuity payments.
.   Where allowed by law, we reserve the right to limit subsequent Purchase
    Payments if we determine, at our sole discretion, that based on the timing
    of your Purchase Payments and withdrawals, your Protected Income Value is
    increasing in ways we did not intend. In determining whether to limit
    Purchase Payments, we will look at Purchase Payments which are
    disproportionately larger than your initial Purchase Payment and other
    actions that may artificially increase the Protected Income Value.
.   We currently limit the Sub-accounts in which you may allocate Account Value
    if you participate in this program. We reserve the right to transfer any
    Account Value in a prohibited investment option to an eligible investment
    option. Should we prohibit access to any investment option, any transfers
    required to move Account Value to eligible investment options will not be
    counted in determining the number of free transfers during an Annuity Year.
    We may also require that you allocate your Account Value according to an
    asset allocation model.
.   If you change the Annuitant after the effective date of the GMIB program,
    the period of time during which we will apply the 5% annual growth rate may
    be changed based on the age of the new Annuitant. If the new Annuitant
    would not be eligible to elect the GMIB program based on his or her age
    at the time of the change, then the GMIB program will terminate.
.   Annuity payments made under the GMIB program are subject to the same tax
    treatment as any other annuity payment.
.   At the time you elect to begin receiving annuity payments under the GMIB
    program or under any other annuity payment option we make available, the
    protection provided by an Annuity's basic Death Benefit or any optional
    Death Benefit provision you elected will no longer apply.

ELECTION OF THE PROGRAM
Currently, the GMIB program can only be elected at the time that you purchase
your Annuity. The Annuitant must be age 75 or less as of the effective date of
the GMIB program. In the future, we may offer existing Annuity Owners the
option to elect the GMIB program after the Issue Date of their Annuity, subject
to our eligibility rules and restrictions. If you elect the GMIB program after
the Issue Date of your Annuity, the program will be effective as of the date of
election. Your Account Value as of that date will be used to calculate the
Protected Income Value as of the effective date of the program.

TERMINATION OF THE PROGRAM
The GMIB program cannot be terminated by the Owner once elected. The GMIB
program automatically terminates as of the date your Annuity is fully
surrendered, on the date the Death Benefit is payable to your Beneficiary
(unless your surviving spouse elects to continue your Annuity), or on the date
that your Account Value is transferred to begin making annuity payments. The
GMIB program may also be terminated if you designate a new Annuitant who would
not be eligible to elect the GMIB program based on his or her age at the time
of the change.
   Upon termination of the GMIB program we will deduct the charge from your
Account Value for the portion of the Annuity Year since the prior anniversary
of the Annuity's Issue Date (or the Issue Date if in the first Annuity Year).

CHARGES UNDER THE PROGRAM
Currently, we deduct a charge equal to 0.50% per year of the average Protected
Income Value for the period the charge applies. Because the charge is
calculated based on the average Protected Income Value, it does not increase or
decrease based on changes to the Annuity's Account Value due to market
performance. The dollar amount you pay each year will increase in any year the
Protected Income Value increases, and it will decrease in any year the
Protected Income Value decreases due to withdrawal, irrespective of whether
your Account Value increases or decreases.
   The charge is deducted annually in arrears each Annuity Year on the
anniversary of the Issue Date of an Annuity. We deduct the amount of the charge
pro-rata from the Account Value allocated to the Sub-accounts and the Fixed
Allocations. No MVA will apply to Account Value deducted from a Fixed
Allocation. If you surrender your Annuity, begin receiving annuity payments
under the GMIB program or any other annuity payment option we make available
during an Annuity Year, or the GMIB program terminates, we will deduct the
charge for the portion of the Annuity


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Living Benefit Programs continued

Year since the prior anniversary of the Annuity's Issue Date (or the Issue Date
if in the first Annuity Year).
   No charge applies after the Annuity Date.

LIFETIME FIVE INCOME BENEFIT (LIFETIME FIVE)

 The Lifetime Five Income Benefit program described below is only being offered
 in those jurisdictions where we have received regulatory approval and will be
 offered subsequently in other jurisdictions when we receive regulatory
 approval in those jurisdictions. Certain terms and conditions may differ
 between jurisdictions once approved. Lifetime Five can be elected only where
 the Annuitant and the Owner are the same person or, if the Annuity Owner is an
 entity, where there is only one Annuitant. Currently, if you elect Lifetime
 Five and subsequently terminate the benefit, there will be a restriction on
 your ability to re-elect Lifetime Five and Spousal Lifetime Five. The
 Annuitant must be at least 45 years old when the program is elected. The
 Lifetime Five Income Benefit program is not available if you elect any other
 optional living benefit. As long as your Lifetime Five Income Benefit is in
 effect, you must allocate your Account Value in accordance with the then
 permitted and available option(s) with this program.

   We offer a program that guarantees your ability to withdraw amounts equal to
a percentage of an initial principal value (called the "Protected Withdrawal
Value"), regardless of the impact of market performance on your Account Value,
subject to our program rules regarding the timing and amount of withdrawals.
There are two options -- one is designed to provide an annual withdrawal amount
for life (the "Life Income Benefit") and the other is designed to provide a
greater annual withdrawal amount as long as there is Protected Withdrawal Value
(adjusted as described below) (the "Withdrawal Benefit"). If there is no
Protected Withdrawal Value, the withdrawal benefit will be zero. You do not
choose between these two options; each option will continue to be available as
long as your Annuity has an Account Value and the Lifetime Five is in effect.
Certain benefits under Lifetime Five may remain in effect even if the Account
Value of your Annuity is zero. The program may be appropriate if you intend to
make periodic withdrawals from your Annuity and wish to ensure that market
performance will not affect your ability to receive annual payments. You are
not required to make withdrawals as part of the program -- the guarantees are
not lost if you withdraw less than the maximum allowable amount each year under
the rules of the program.

KEY FEATURE -- PROTECTED WITHDRAWAL VALUE
The Protected Withdrawal Value is initially used to determine the amount of
each initial annual payment under the Life Income Benefit and the Withdrawal
Benefit. The initial Protected Withdrawal Value is determined as of the date
you make your first withdrawal under your Annuity following your election of
Lifetime Five. The initial Protected Withdrawal Value is equal to the greater
of (A) the Account Value on the date you elect Lifetime Five growing at 5% per
year from the date of your election of the program, or application of the
Purchase Payment to your Annuity, as applicable, until the date of your first
withdrawal or the 10/th /anniversary of the benefit effective date, if earlier
(B) the Account Value as of the date of the first withdrawal from your Annuity,
prior to the withdrawal, and (C) the highest Account Value on each Annuity
anniversary prior to the first withdrawal or on the first 10 Annuity
anniversaries if earlier than the date of your first withdrawal after the
benefit effective date. With respect to (A) and (C) above each value is
increased by the amount of any subsequent Purchase Payments. With respect to
Optimum Plus, Credits are added to Purchase Payments for purposes of
calculating the Protected Withdrawal Value, the Annual Income Amount and the
Annual Withdrawal Amount (see below for a description of Annual Income Amount
and Annual Withdrawal Amount).
.   If you elect the Lifetime Five program at the time you purchase your
    Annuity, the Account Value will be your initial Purchase Payment.
.   For existing Owners who are electing the Lifetime Five benefit, the Account
    Value on the date of your election of the Lifetime Five program will be
    used to determine the initial Protected Withdrawal Value.
.   If you make additional Purchase Payments after your first withdrawal, the
    Protected Withdrawal Value will be increased by the amount of each
    additional Purchase Payment.
   You may elect to step-up your Protected Withdrawal Value if, due to positive
market performance, your Account Value is greater than the Protected Withdrawal
Value. If you elected the Lifetime Five program prior to March 20, 2006 and
that original election remains in effect, then you are eligible to step-up the
Protected Withdrawal Value on or after the 5/th/ anniversary of
the first withdrawal under the Lifetime Five program. Under


                                      56




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Annuities with Lifetime Five elected prior to March 20, 2006, the Protected
Withdrawal Value can be stepped up again on or after the 5th anniversary
following the preceding step-up. If you elected the Lifetime Five program on or
after March 20, 2006, then you are eligible to step-up the Protected Withdrawal
Value on or after the 3rd anniversary of the first withdrawal under the
Lifetime Five program. Under Annuities with Lifetime Five elected on or after
March 20, 2006, the Protected Withdrawal Value can be stepped up again on or
after the 3rd anniversary following the preceding step-up. In either scenario
(i.e., elections before or after March 20, 2006) if you elect to step-up the
Protected Withdrawal Value under the program, and on the date you elect to
step-up, the charges under the Lifetime Five program have changed for new
purchasers, your program may be subject to the new charge going forward. Upon
election of the step-up, we increase the Protected Withdrawal Value to be equal
to the then current Account Value. For example, assume your initial Protected
Withdrawal Value was $100,000 and you have made cumulative withdrawals of
$40,000, reducing the Protected Withdrawal Value to $60,000. On the date you
are eligible to step-up the Protected Withdrawal Value, your Account Value is
equal to $75,000. You could elect to step-up the Protected Withdrawal Value to
$75,000 on the date you are eligible. If your current Annual Income Amount and
Annual Withdrawal Amount are less than they would be if we did not reflect the
step-up in Protected Withdrawal Value, then we will increase these amounts to
reflect the step-up as described below.
<R>
   An optional automatic set-up ("Auto Step-Up") feature is available for this
benefit. This feature may be elected at the time the benefit is elected or at
any time while the benefit is in force. If you elect this feature, the first
Auto Step-Up opportunity will occur on the 3rd Annuity Anniversary (5th Annuity
Anniversary if the benefit was elected prior to March 20, 2006) following the
later of the first withdrawal under the benefit or the prior step-up. At this
time, your Protected Withdrawal Value will only be stepped-up if 5% of the
Account Value exceeds the Annual Income Amount by 5% or more. If 5% of the
Account Value does not exceed the Annual Income Amount by 5% or more, then an
Auto Step-Up opportunity will occur on each successive Annuity Anniversary
until a step-up occurs. Once a step-up occurs, the next Auto Step-Up
opportunity will occur on the 3rd (5th if the benefit was elected prior to
March 20, 2006) Annuity Anniversary following the most recent step-up. If, on
the date that we implement an Auto Step-Up to your Protected Withdrawal Value,
the charge for Lifetime Five has changed for new purchasers, you may be subject
to the new charge at the time of such step-up.
</R>
   The Protected Withdrawal Value is reduced each time a withdrawal is made on
a dollar-for-dollar basis up to 7% per Annuity Year of the Protected Withdrawal
Value and on the greater of a dollar-for-dollar basis or a pro rata basis for
withdrawals in an Annuity Year in excess of that amount until the Protected
Withdrawal Value is reduced to zero. At that point the Annual Withdrawal Amount
will be zero until such time (if any) as the Annuity reflects a Protected
Withdrawal Value (for example, due to a step-up or additional Purchase Payments
being made into the Annuity).

KEY FEATURE -- ANNUAL INCOME AMOUNT UNDER THE LIFE INCOME BENEFIT
The initial Annual Income Amount is equal to 5% of the initial Protected
Withdrawal Value. Under the Lifetime Five program, if your cumulative
withdrawals in an Annuity Year are less than or equal to the Annual Income
Amount, they will not reduce your Annual Income Amount in subsequent Annuity
Years, but any such withdrawals will reduce the Annual Income Amount on a
dollar-for-dollar basis in that Annuity Year. If your cumulative withdrawals
are in excess of the Annual Income Amount ("Excess Income"), your Annual Income
Amount in subsequent years will be reduced (except with regard to required
minimum distributions) by the result of the ratio of the Excess Income to the
Account Value immediately prior to such withdrawal (see examples of this
calculation below). Reductions include the actual amount of the withdrawal,
including any CDSC that may apply. A withdrawal can be considered Excess Income
under the Life Income Benefit even though it does not exceed the Annual
Withdrawal Amount under the Withdrawal Benefit. When you elect a step-up (or an
auto step-up is effected), your Annual Income Amount increases to equal 5% of
your Account Value after the step-up if such amount is greater than your Annual
Income Amount. Your Annual Income Amount also increases if you make additional
Purchase Payments. The amount of the increase is equal to 5% of any additional
Purchase Payments. Any increase will be added to your Annual Income Amount
beginning on the day that the step-up is effective or the Purchase Payment is
made. A determination of whether you have exceeded your Annual Income Amount is
made at the time of each withdrawal; therefore a subsequent increase in the
Annual Income Amount will not offset the effect of a withdrawal that exceeded
the Annual Income Amount at the time the withdrawal was made.


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Living Benefit Programs continued


KEY FEATURE -- ANNUAL WITHDRAWAL AMOUNT UNDER THE WITHDRAWAL BENEFIT
The initial Annual Withdrawal Amount is equal to 7% of the initial Protected
Withdrawal Value. Under the Lifetime Five program, if your cumulative
withdrawals each Annuity Year are less than or equal to the Annual Withdrawal
Amount, your Protected Withdrawal Value will be reduced on a dollar-for-dollar
basis. If your cumulative withdrawals are in excess of the Annual Withdrawal
Amount ("Excess Withdrawal"), your Annual Withdrawal Amount will be reduced
(except with regard to required minimum distributions) by the result of the
ratio of the Excess Withdrawal to the Account Value immediately prior to such
withdrawal (see the examples of this calculation below). Reductions include the
actual amount of the withdrawal, including any CDSC that may apply. When you
elect a step-up (or an auto step-up is effected), your Annual Withdrawal Amount
increases to equal 7% of your Account Value after the step-up if such amount is
greater than your Annual Withdrawal Amount. Your Annual Withdrawal Amount also
increases if you make additional Purchase Payments. The amount of the increase
is equal to 7% of any additional Purchase Payments. A determination of whether
you have exceeded your Annual Withdrawal Amount is made at the time of each
withdrawal; therefore, a subsequent increase in the Annual Withdrawal Amount
will not offset the effect of a withdrawal that exceeded the Annual Withdrawal
Amount at the time the withdrawal was made.
   The Lifetime Five program does not affect your ability to make withdrawals
under your Annuity or limit your ability to request withdrawals that exceed the
Annual Income Amount and the Annual Withdrawal Amount. You are not required to
withdraw all or any portion of the Annual Withdrawal Amount or Annual Income
Amount in each Annuity Year.
.   If, cumulatively, you withdraw an amount less than the Annual Withdrawal
    Amount under the Withdrawal Benefit in any Annuity Year, you cannot
    carry-over the unused portion of the Annual Withdrawal Amount to subsequent
    Annuity Years. However, because the Protected Withdrawal Value is only
    reduced by the actual amount of withdrawals you make under these
    circumstances, any unused Annual Withdrawal Amount may extend the period of
    time until the remaining Protected Withdrawal Value is reduced to zero.
.   If, cumulatively, you withdraw an amount less than the Annual Income Amount
    under the Life Income Benefit in any Annuity Year, you cannot carry-over
    the unused portion of the Annual Income Amount to subsequent Annuity Years.
    However, because the Protected Withdrawal Value is only reduced by the
    actual amount of withdrawals you make under these circumstances, any unused
    Annual Income Amount may extend the period of time until the remaining
    Protected Withdrawal Value is reduced to zero.
<R>
   The following examples of dollar-for-dollar and proportional reductions and
the step-up of the Protected Withdrawal Value, Annual Withdrawal Amount and
Annual Income Amount assume: 1.) the Issue Date and the Effective Date of the
Lifetime Five program are February 1, 2005; 2.) an initial Purchase Payment of
$250,000; 3.) the Account Value on February 1, 2006 is equal to $265,000; 4.)
the first withdrawal occurs on March 1, 2006 when the Account Value is equal to
$263,000; and 5.) the Account Value on February 1, 2010 is equal to $240,000.
The values set forth here are purely hypothetical, and do not reflect the
charge for Lifetime Five or any other fees and charges.
</R>
   The initial Protected Withdrawal Value is calculated as the greatest of (a),
(b) and (c):
  (a)Purchase payment accumulated at 5% per year from February 1, 2005 until
     March 1, 2006 (393 days) = $250,000 X 1.05/(393/365)/ = $263,484.33
  (b)Account Value on March 1, 2006 (the date of the first withdrawal) =
     $263,000
  (c)Account Value on February 1, 2006 (the first Annuity Anniversary) =
     $265,000
   Therefore, the initial Protected Withdrawal Value is equal to $265,000. The
Annual Withdrawal Amount is equal to $18,550 under the Withdrawal Benefit (7%
of $265,000). The Annual Income Amount is equal to $13,250 under the Life
Income Benefit (5% of $265,000).

EXAMPLE 1. DOLLAR-FOR-DOLLAR REDUCTION
If $10,000 was withdrawn (less than both the Annual Income Amount and the
Annual Withdrawal Amount) on March 1, 2006, then the following values would
result:
.   Remaining Annual Withdrawal Amount for current Annuity Year = $18,550 -
    $10,000 = $8,550
   Annual Withdrawal Amount for future Annuity Years remains at $18,550
.   Remaining Annual Income Amount for current Annuity Year = $13,250 - $10,000
    = $3,250 Annual Income Amount for future Annuity Years remains at $13,250
.   Protected Withdrawal Value is reduced by $10,000 from $265,000 to $255,000


                                      58




AMERICAN SKANDIA ANNUITIES PROSPECTUS


EXAMPLE 2. DOLLAR-FOR-DOLLAR AND PROPORTIONAL REDUCTIONS
  (a)If $15,000 was withdrawn (more than the Annual Income Amount but less than
     the Annual Withdrawal Amount) on March 1, 2006, then the following values
     would result:
.   Remaining Annual Withdrawal Amount for current Annuity Year = $18,550 -
    $15,000 = $3,550 Annual Withdrawal Amount for future Annuity Years remains
    at $18,550
.   Remaining Annual Income Amount for current Annuity Year = $0
   Excess of withdrawal over the Annual Income Amount ($15,000 - $13,250 =
   $1,750) reduces Annual Income Amount for future Annuity Years.
.   Reduction to Annual Income Amount = Excess Income/ Account Value before
    Excess Income X Annual Income Amount = $1,750 / ($263,000 - $13,250) X
    $13,250 = $93 Annual Income Amount for future Annuity Years = $13,250 - $93
    = $13,157
.   Protected Withdrawal Value is reduced by $15,000 from $265,000 to $250,000
(b) If $25,000 was withdrawn (more than both the Annual Income Amount and the
    Annual Withdrawal Amount) on March 1, 2006, then the following values would
    result:
.   Remaining Annual Withdrawal Amount for current Annuity Year = $0 Excess of
    withdrawal over the Annual Withdrawal Amount ($25,000 - $18,550 = $6,450)
    reduces Annual Withdrawal Amount for future Annuity Years.
.   Reduction to Annual Withdrawal Amount = Excess Withdrawal/Account Value
    before Excess Withdrawal X Annual Withdrawal Amount = $6,450 / ($263,000 -
    $18,550) X $18,550 = $489
   Annual Withdrawal Amount for future Annuity Years = $18,550 - $489 = $18,061
.   Remaining Annual Income Amount for current Annuity Year = $0
   Excess of withdrawal over the Annual Income Amount
   ($25,000 - $13,250 = $11,750) reduces Annual Income Amount for future
   Annuity Years.
.   Reduction to Annual Income Amount = Excess Income/ Account Value before
    Excess Income X Annual Income Amount = $11,750 / ($263,000 - $13,250) X
    $13,250 = $623 Annual Income Amount for future Annuity Years =
    $13,250 - $623 = $12,627
.   Protected Withdrawal Value is first reduced by the Annual Withdrawal Amount
    ($18,550) from $265,000 to $246,450. It is further reduced by the greater
    of a dollar-for-dollar reduction or a proportional
    reduction. Dollar-for-dollar reduction = $25,000 - $18,550 = $6,450
.   Proportional reduction = Excess Withdrawal / Account Value before Excess
    Withdrawal X Protected Withdrawal Value = $6,450 / ($263,000 - $18,550) X
    $246,450 = $6,503 Protected Withdrawal Value = $246,450 - max {$6,450,
    $6,503} = $239,947

EXAMPLE 3. STEP-UP OF THE PROTECTED WITHDRAWAL VALUE
<R>
If the Annual Income Amount ($13,250) is withdrawn each year starting on
March 1, 2006 for a period of 3 years, the Protected Withdrawal Value on
February 1, 2010 would be reduced to $225,250 {$265,000 - ($13,250 X 3)}. If a
step-up is elected on February 1, 2010, then the following values would result:
.   Protected Withdrawal Value = Account Value on February 1, 2010 = $280,000
.   Annual Income Amount is equal to the greater of the current Annual Income
    Amount or 5% of the stepped up Protected Withdrawal Value. Current Annual
    Income Amount is $13,250. 5% of the stepped up Protected Withdrawal Value
    is 5% of $280,000, which is $14,000. Therefore, the Annual Income Amount is
    increased to $14,000.
.   If the step-up request on February 1, 2010 was due to the election of the
    auto step-up feature, we would first check to see if an auto step-up should
    occur by checking to see if 5% of the Account Value exceeds the Annual
    Income Amount by 5% or more. 5% of the Account Value is equal to 5% of
    $280,000, which is $14,000. 5% of the Annual Income Amount ($13,250) is
    $662.50, which added to the Annual Income Amount is $13,912.50. Since 5% of
    the Account Value is greater than $13,912.50, the step-up would still occur
    in this scenario, and all of the values would be increased as indicated
    above.
.   Annual Withdrawal Amount is equal to the greater of the current Annual
    Withdrawal Amount or 7% of the stepped up Protected Withdrawal Value.
    Current Annual Withdrawal Amount is $18,550. 7% of the stepped-up Protected
    Withdrawal Value is 7% of $280,000, which is $19,600. Therefore the Annual
    Withdrawal Amount is increased to $19,600.
</R>

BENEFITS UNDER THE LIFETIME FIVE PROGRAM
.   If your Account Value is equal to zero, and the cumulative withdrawals in
    the current Annuity Year are greater than the


                                      59




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Living Benefit Programs continued

  Annual Withdrawal Amount, the Lifetime Five program will terminate. To the
   extent that your Account Value was reduced to zero as a result of cumulative
   withdrawals that are equal to or less than the Annual Income Amount and
   amounts are still payable under both the Life Income Benefit and the
   Withdrawal Benefit, you will be given the choice of receiving the payments
   under the Life Income Benefit or under the Withdrawal Benefit. Thus, in that
   scenario, the remaining amounts under the Life Income Benefit and the
   Withdrawal Benefit would be payable even though your Account Value was
   reduced to zero. Once you make this election we will make an additional
   payment for that Annuity Year equal to either the remaining Annual Income
   Amount or Annual Withdrawal Amount for the Annuity Year, if any, depending
   on the option you choose. In subsequent Annuity Years we make payments that
   equal either the Annual Income Amount or the Annual Withdrawal Amount as
   described in this Prospectus. You will not be able to change the option
   after your election and no further Purchase Payments will be accepted under
   your Annuity. If you do not make an election, we will pay you annually under
   the Life Income Benefit. To the extent that cumulative withdrawals in the
   current Annuity Year that reduced your Account Value to zero are more than
   the Annual Income Amount but less than or equal to the Annual Withdrawal
   Amount and amounts are still payable under the Withdrawal Benefit, you will
   receive the payments under the Withdrawal Benefit. In the year of a
   withdrawal that reduced your Account Value to zero, we will make an
   additional payment to equal any remaining Annual Withdrawal Amount and make
   payments equal to the Annual Withdrawal Amount in each subsequent year
   (until the Protected Withdrawal Value is depleted). Once your Account Value
   equals zero no further Purchase Payments will be accepted under your Annuity.
.   If annuity payments are to begin under the terms of your Annuity or if you
    decide to begin receiving annuity payments and there is any Annual Income
    Amount due in subsequent Annuity Years or any remaining Protected
    Withdrawal Value, you can elect one of the following three options:
  (1)apply your Account Value to any annuity option available; or
  (2)request that, as of the date annuity payments are to begin, we make
     annuity payments each year equal to the Annual Income Amount. We make such
     annuity payments until the Annuitant's death; or
  (3)request that, as of the date annuity payments are to begin, we pay out any
     remaining Protected Withdrawal Value as annuity payments. Each year such
     annuity payments will equal the Annual Withdrawal Amount or the remaining
     Protected Withdrawal Value if less. We make such annuity payments until
     the earlier of the Annuitant's death or the date the Protected Withdrawal
     Value is depleted.
   We must receive your request in a form acceptable to us at our office.
.   In the absence of an election when mandatory annuity payments are to begin,
    we will make annual annuity payments as a single life fixed annuity with
    five payments certain using the greater of the annuity rates then currently
    available or the annuity rates guaranteed in your Annuity. The amount that
    will be applied to provide such annuity payments will be the greater of:
  (1)the present value of future Annual Income Amount payments. Such present
     value will be calculated using the greater of the single life fixed
     annuity rates then currently available or the single life fixed annuity
     rates guaranteed in your Annuity; and
  (2)the Account Value.
.   If no withdrawal was ever taken, we will determine a Protected Withdrawal
    Value and calculate an Annual Income Amount and an Annual Withdrawal Amount
    as if you made your first withdrawal on the date the annuity payments are
    to begin.

OTHER IMPORTANT CONSIDERATIONS
.   Withdrawals under the Lifetime Five program are subject to all of the terms
    and conditions of your Annuity, including any applicable CDSC.
.   Withdrawals made while the Lifetime Five program is in effect will be
    treated, for tax purposes, in the same way as any other withdrawals under
    your Annuity. The Lifetime Five program does not directly affect your
    Annuity's Account Value or Surrender Value, but any withdrawal will
    decrease the Account Value by the amount of the withdrawal (plus any
    applicable CDSC). If you surrender your Annuity, you will receive the
    current Surrender Value, not the Protected Withdrawal Value.
.   You can make withdrawals from your Annuity while your Account Value is
    greater than zero without purchasing the Lifetime Five program. The
    Lifetime Five program provides a guarantee that if your Account Value
    declines due to market


                                      60




AMERICAN SKANDIA ANNUITIES PROSPECTUS

  performance, you will be able to receive your Protected Withdrawal Value or
   Annual Income Amount in the form of periodic benefit payments.
.   You must allocate your Account Value in accordance with the then permitted
    and available option(s) with this program in order to elect and maintain
    the Lifetime Five program.

ELECTION OF THE PROGRAM
The Lifetime Five program can be elected at the time that you purchase your
Annuity. We also offer existing Owners the option to elect the Lifetime Five
program after the Issue Date of their Annuity, subject to our eligibility rules
and restrictions. Your Account Value as the date of election will be used as a
basis to calculate the initial Protected Withdrawal Value, the initial
Protected Annual Withdrawal Amount, and the Annual Income Amount.
<R>
   Currently, if you terminate the program, you will only be permitted to
re-elect Lifetime Five or elect the Spousal Lifetime Five Income Benefit on any
anniversary of the Issue Date that is at least 90 calendar days from the date
the benefit was last terminated.
</R>
   If you elected Lifetime Five prior to March 20, 2006, and you terminate the
program, there will be no waiting period before you can re-elect the program or
elect Spousal Lifetime Five provided that you had not previously elected
Lifetime Five after the Issue Date and within the same Annuity Year that you
terminated Lifetime Five. If you had previously elected Lifetime Five after the
Issue Date and within the same Annuity Year that you terminate Lifetime Five,
you will be able to re-elect the program or elect Spousal Lifetime Five on any
date on or after the next anniversary of the Annuity Date. However, once you
choose to re-elect/elect, the waiting period described above will apply to
subsequent re-elections. We reserve the right to limit the re-election/election
frequency in the future. Before making any such change to the
re-election/election frequency, we will provide prior notice to Owners who have
an effective Lifetime Five Income Benefit.

TERMINATION OF THE PROGRAM
<R>
The program terminates automatically when your Protected Withdrawal Value and
Annual Income Amount equal zero. You may terminate the program at any time by
notifying us. If you terminate as of the date the termination is effective and
certain restrictions on re-election of the benefit will apply as described
above. The program terminates upon your surrender of your Annuity, upon the
death of the Annuitant (but your surviving spouse may elect a new Lifetime Five
if your spouse elects the spousal continuance option and your spouse would then
be eligible to elect the benefit if he or she was a new purchaser), upon a
change in ownership of your Annuity that changes the tax identification number
of the Owner, upon change in the Annuitant or upon your election to begin
receiving annuity payments. While you may terminate your program at any time,
we may not terminate the program other than in the circumstances listed above.
However, we may stop offering the program for new elections or re-elections at
any time in the future.
</R>
terminate the program, any guarantee provided by the benefit will
   The charge for the Lifetime Five program will no longer be deducted from
your Account Value upon termination of the program.

<R>
ADDITIONAL TAX CONSIDERATIONS FOR QUALIFIED CONTRACTS/ARRANGEMENTS
If you purchase an Annuity as an investment vehicle for "qualified"
investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or
employer plan under Code Section 401(a), the minimum distribution rules under
the Code require that you begin receiving periodic amounts from your Annuity
beginning after age 70 1/2. For a Tax Sheltered Annuity or a 401(a) plan for
which the participant is not a greater than 5 percent owner of the employer,
this required beginning date can generally be deferred to retirement, if later.
Roth IRAs are not subject to these rules during the Owner's lifetime. The
amount required under the Code may exceed the Annual Withdrawal Amount and the
Annual Income Amount, which will cause us to increase the Annual Income Amount
and the Annual Withdrawal Amount in any Annuity Year that required minimum
distributions due from your Annuity are greater than such amounts. Any such
payments will reduce your Protected Withdrawal Value. In addition, the amount
and duration of payments under the annuity payment and Death Benefit provisions
may be adjusted so that the payments do not trigger any penalty or excise taxes
due to tax considerations such as minimum distribution requirements.
</R>


                                      61




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Living Benefit Programs continued


SPOUSAL LIFETIME FIVE INCOME BENEFIT (SPOUSAL LIFETIME FIVE)

 The Spousal Lifetime Five program described below is only being offered in
 those jurisdictions where we have received regulatory approval and will be
 offered subsequently in other jurisdictions when we receive regulatory
 approval in those jurisdictions. Certain terms and conditions may differ
 between jurisdictions once approved. Currently, if you elect Spousal Lifetime
 Five and subsequently terminate the benefit, there will be a restriction on
 your ability to re-elect Spousal Lifetime Five and Lifetime Five. We reserve
 the right to further limit the election frequency in the future. Before making
 any such change to the election frequency, we will provide prior notice to
 Owners who have an effective Spousal Lifetime Five Income Benefit. Spousal
 Lifetime Five must be elected based on two Designated Lives, as described
 below. Each Designated Life must be at least 55 years old when the benefit is
 elected. The Spousal Lifetime Five program is not available if you elect any
 other optional living benefit or Death Benefit. As long as your Spousal
 Lifetime Five Income Benefit is in effect, you must allocate your Account
 Value in accordance with the then permitted and available option(s) with this
 program.

   We offer a program that guarantees until the later death of two natural
persons that are each other's spouses at the time of election of Spousal
Lifetime Five and at the first death of one of them (the "Designated Lives",
each a "Designated Life") the ability to withdraw an annual amount ("Spousal
Life Income Benefit") equal to a percentage of an initial principal value (the
"Protected Withdrawal Value") regardless of the impact of market performance on
the Account Value, subject to our program rules regarding the timing and amount
of withdrawals. The Spousal Life Income Benefit may remain in effect even if
the Account Value of the Annuity is zero. The program may be appropriate if you
intend to make periodic withdrawals from your Annuity, wish to ensure that
market performance will not affect your ability to receive annual payments, and
wish either spouse to be able to continue the Spousal Life Income Benefit after
the death of the first. You are not required to make withdrawals as part of the
program -- the guarantees are not lost if you withdraw less than the maximum
allowable amount each year under the rules of the program.

KEY FEATURE -- INITIAL PROTECTED WITHDRAWAL VALUE
The initial Protected Withdrawal Value is used to determine the amount of
initial annual payment under the Spousal Life Income Benefit. The initial
Protected Withdrawal Value is determined as of the date you make your first
withdrawal under the Annuity following your election of Spousal Lifetime Five.
The initial Protected Withdrawal Value is equal to the greater of (A) the
Account Value on the date you elect Spousal Lifetime Five, plus any additional
Purchase Payments growing at 5% per year from the application of the Purchase
Payment to your Annuity, until the date of your first withdrawal or the 10/th
/anniversary of the benefit effective date, if earlier (B) the Account Value as
of the date of the first withdrawal from your Annuity, prior to the withdrawal,
and (C) the highest Account Value on each Annuity anniversary prior to the
first withdrawal or on the first 10 Annuity anniversaries if earlier than the
date of your first withdrawal after the benefit effective date. With respect to
(A) and (C) above, each value is increased by the amount of any subsequent
Purchase Payments. With respect to Optimum Plus, Credits are added to Purchase
Payments for purposes of calculating the Protected Withdrawal Value and the
Annual Income Amount (see below for a description of Annual Income Amount).
.   If you elect the Spousal Lifetime Five program at the time you purchase
    your Annuity, the Account Value will be your initial Purchase Payment.
.   For existing Owners who are electing the Spousal Lifetime Five benefit, the
    Account Value on the date of your election of the Spousal Lifetime Five
    program will be used to determine the initial Protected Withdrawal Value.

KEY FEATURE -- ANNUAL INCOME AMOUNT UNDER THE SPOUSAL LIFE INCOME BENEFIT
The initial Annual Income Amount is equal to 5% of the initial Protected
Withdrawal Value. Under the Spousal Lifetime Five program, if your cumulative
withdrawals in an Annuity Year are less than or equal to the Annual Income
Amount, they will not reduce your Annual Income Amount in subsequent Annuity
Years, but any such withdrawals will reduce the Annual Income Amount on a
dollar-for-dollar basis in that Annuity Year. If your cumulative withdrawals
are in excess of the Annual Income Amount ("Excess Income"), your Annual Income
Amount in subsequent years will be reduced (except with regard to required
minimum distributions) by the result of the ratio of the Excess Income to the
Account Value immediately prior to such withdrawal (see examples of this
calculation below). Reductions include the actual amount of the withdrawal,
including any CDSC that may apply.


                                      62




AMERICAN SKANDIA ANNUITIES PROSPECTUS

   You may elect to step-up your Annual Income Amount if, due to positive
market performance, 5% of your Account Value is greater than the Annual Income
Amount. You are eligible to step-up the Annual Income Amount on or after the
3/rd /anniversary of the first withdrawal under the Spousal Lifetime Five
program. The Annual Income Amount can be stepped up again on or after the 3/rd
/anniversary of the preceding step-up. If you elect to step-up the Annual
Income Amount under the program, and on the date you elect to step-up, the
charges under the Spousal Lifetime Five program have changed for new
purchasers, your program may be subject to the new charge at the time of such
step-up. When you elect a step-up, your Annual Income Amount increases to equal
5% of your Account Value after the step-up. Your Annual Income Amount also
increases if you make additional Purchase Payments. The amount of the increase
is equal to 5% of any additional Purchase Payments. Any increase will be added
to your Annual Income Amount beginning on the day that the step-up is effective
or the Purchase Payment is made. A determination of whether you have exceeded
your Annual Income Amount is made at the time of each withdrawal; therefore a
subsequent increase in the Annual Income Amount will not offset the effect of a
withdrawal that exceeded the Annual Income Amount at the time the withdrawal
was made.
<R>
   An optional automatic step-up ("Auto Step-Up") feature is available for this
benefit. This feature may be elected at the time the benefit is elected or at
any time while the benefit is in force. If you elect this feature, the first
Auto Step-Up opportunity will occur on the 3rd Annuity Anniversary following
the later of the first withdrawal under the benefit or the prior step-up. At
this time, your Annual Income Amount will only be stepped-up if 5% of the
Account Value exceeds the Annual Income Amount by 5% or more. If 5% of the
Account Value does not exceed the Annual Income Amount by 5% or more, then an
Auto Step-Up opportunity will occur on each successive Annuity Anniversary
until a step-up occurs. Once a step-up occurs, the next Auto Step-Up
opportunity will occur on the 3rd Annuity Anniversary following the most recent
step-up. If, on the date that we implement an Auto Step-Up to your Annual
Income Amount, the charge for Spousal Lifetime Five has changed for new
purchasers, you may be subject to the new charge at the time of such step-up.
</R>
   The Spousal Lifetime Five program does not affect your ability to make
withdrawals under your Annuity or limit your ability to request withdrawals
that exceed the Annual Income Amount. Under Spousal Lifetime Five, if your
cumulative withdrawals in an Annuity Year are less than or equal to the Annual
Income Amount, they will not reduce your Annual Income Amount in subsequent
Annuity Years, but any such withdrawals will reduce the Annual Income Amount on
a dollar-for-dollar basis in that Annuity Year.
   If, cumulatively, you withdraw an amount less than the Annual Income Amount
under the Spousal Life Income Benefit in any Annuity Year, you cannot
carry-over the unused portion of the Annual Income Amount to subsequent Annuity
Years.
<R>
   The following examples of dollar-for-dollar and proportional reductions and
the step-up of the Annual Income Amount assume: 1.) the Issue Date and the
Effective Date of the Spousal Lifetime Five program are February 1, 2005; 2.)
an initial Purchase Payment of $250,000; 3.) the Account Value on February 1,
2006 is equal to $265,000; 4.) the first withdrawal occurs on March 1, 2006
when the Account Value is equal to $263,000; and 5.) the Account Value on
February 1, 2010 is equal to $280,000. The values set forth here are purely
hypothetical, and do not reflect the charge for the Spousal Lifetime Five or
any other fees and charges.
</R>
   The initial Protected Withdrawal Value is calculated as the greatest of (a),
(b) and (c):
  (a)Purchase payment accumulated at 5% per year from February 1, 2005 until
     March 1, 2006 (393 days) = $250,000 X 1.05/(393/365/) = $263,484.33
  (b)Account Value on March 1, 2006 (the date of the first withdrawal) =
     $263,000
  (c)Account Value on February 1, 2006 (the first Annuity Anniversary) =
     $265,000
   Therefore, the initial Protected Withdrawal Value is equal to $265,000. The
Annual Income Amount is equal to $13,250 under the Spousal Life Income Benefit
(5% of $265,000).

EXAMPLE 1. DOLLAR-FOR-DOLLAR REDUCTION
If $10,000 was withdrawn (less than the Annual Income Amount) on March 1, 2006,
then the following values would result:
.   Remaining Annual Income Amount for current Annuity Year = $13,250 - $10,000
    = $3,250
   Annual Income Amount for future Annuity Years remains at $13,250

EXAMPLE 2. DOLLAR-FOR-DOLLAR AND PROPORTIONAL REDUCTIONS
  (a)If $15,000 was withdrawn (more than the Annual Income Amount) on March 1,
     2006, then the following values would result:
.   Remaining Annual Income Amount for current Annuity Year = $0
   Excess of withdrawal over the Annual Income Amount


                                      63




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Living Benefit Programs continued

   ($15,000 - $13,250 = $1,750) reduces Annual Income Amount for future Annuity
   Years.
.   Reduction to Annual Income Amount = Excess Income/ Account Value before
    Excess Income X Annual Income Amount = $1,750 / ($263,000 - $13,250) X
    $13,250 = $93 Annual Income Amount for future Annuity Years = $13,250 - $93
    = $13,157

EXAMPLE 3. STEP-UP OF THE ANNUAL INCOME AMOUNT
<R>
If a step-up of the Annual Income Amount is requested on February 1, 2010, the
request will be accepted because 5% of the Account Value, which is $14,000 (5%
of $280,000), is greater than the Annual Income Amount of $13,250. The new
Annual Income Amount will be equal to $14,000. If the step-up request was due
to the election of the auto step-up feature, the step-up would still occur
because 5% of Account Value would exceed the Annual Income Amount by more than
5% (5% of $13,250 = $662.50; $13,250 + $662.50 = $13,912.50; $14,000
(greater than) $13,912.50).
</R>

BENEFITS UNDER THE SPOUSAL LIFETIME FIVE PROGRAM
.   To the extent that your Account Value was reduced to zero as a result of
    cumulative withdrawals that are equal to or less than the Annual Income
    Amount and amounts are still payable under the Spousal Life Income Benefit,
    we will make an additional payment for that Annuity Year equal to the
    remaining Annual Income Amount for the Annuity Year, if any. Thus, in that
    scenario, the remaining Annual Income Amount would be payable even though
    your Account Value was reduced to zero. In subsequent Annuity Years we make
    payments that equal the Annual Income Amount as described in this
    Prospectus. No further Purchase Payments will be accepted under your
    Annuity. We will make payments until the first of the Designated Lives to
    die, and will continue to make payments until the death of the second
    Designated Life as long as the Designated Lives were spouses at the time of
    the first death. To the extent that cumulative withdrawals in the current
    Annuity Year that reduced your Account Value to zero are more than the
    Annual Income Amount, the Spousal Life Income Benefit terminates and no
    additional payments will be made.
.   If annuity payments are to begin under the terms of your Annuity or if you
    decide to begin receiving annuity payments and there is any Annual Income
    Amount due in subsequent Annuity Years, you can elect one of the following
    two options:
  (1)apply your Account Value to any annuity option available; or
  (2)request that, as of the date annuity payments are to begin, we make
     annuity payments each year equal to the Annual Income Amount. We will make
     payments until the first of the Designated Lives to die, and will continue
     to make payments until the death of the second Designated Life as long as
     the Designated Lives were spouses at the time of the first death.
   We must receive your request in a form acceptable to us at our office.
.   In the absence of an election when mandatory annuity payments are to begin,
    we will make annual annuity payments as a joint and survivor or single (as
    applicable) life fixed annuity with five payments certain using the same
    basis that is used to calculate the greater of the annuity rates then
    currently available or the annuity rates guaranteed in your Annuity. The
    amount that will be applied to provide such annuity payments will be the
    greater of:
  (1)the present value of future Annual Income Amount payments. Such present
     value will be calculated using the same basis that is used to calculate
     the single life fixed annuity rates then currently available or the single
     life fixed annuity rates guaranteed in your Annuity; and
  (2)the Account Value.
.   If no withdrawal was ever taken, we will determine an initial Protected
    Withdrawal Value and calculate an Annual Income Amount as if you made your
    first withdrawal on the date the annuity payments are to begin.

OTHER IMPORTANT CONSIDERATIONS
.   Withdrawals under the Spousal Lifetime Five program are subject to all of
    the terms and conditions of the Annuity, including any CDSC.
.   Withdrawals made while the Spousal Lifetime Five program is in effect will
    be treated, for tax purposes, in the same way as any other withdrawals
    under the Annuity. The Spousal Lifetime Five program does not directly
    affect the Annuity's Account Value or Surrender Value, but any withdrawal
    will decrease the Account Value by the amount of the withdrawal (plus any
    applicable CDSC). If you surrender your Annuity, you will receive the
    current Surrender Value.
.   You can make withdrawals from your Annuity while your Account Value is
    greater than zero without purchasing the Spousal Lifetime Five program. The
    Spousal Lifetime Five program provides a guarantee that if your Account
    Value


                                      64




AMERICAN SKANDIA ANNUITIES PROSPECTUS

  declines due to market performance, you will be able to receive your Annual
   Income Amount in the form of periodic benefit payments.
.   You must allocate your Account Value in accordance with the then available
    option(s) that we may permit in order to elect and maintain the Spousal
    Lifetime Five program.
.   There may be circumstances where you will continue to be charged the full
    amount for the Spousal Lifetime Five program even when the benefit is only
    providing a guarantee of income based on one life with no survivorship.
<R>
.   In order for the Surviving Designated Life to continue the Spousal Lifetime
    Five program upon the death of an owner, the Designated Life must elect to
    assume ownership of the Annuity under the spousal continuation option. See
    "Spousal Owners/Spousal Beneficiaries" and "Spousal Beneficiary
    --Assumption of Annuity" in this Prospectus.
</R>

ELECTION OF AND DESIGNATIONS UNDER THE PROGRAM
Spousal Lifetime Five can only be elected based on two Designated Lives.
Designated Lives must be natural persons who are each other's spouses at the
time of election of the program and at the death of the first of the Designated
Lives to die. Currently, the program may only be elected where the Owner,
Annuitant and Beneficiary designations are as follows:
.   One Annuity Owner, where the Annuitant and the Owner are the same person
    and the beneficiary is the Owner's spouse. The Owner/Annuitant and the
    beneficiary each must be at least 55 years old at the time of election; or
.   Co-Annuity Owners, where the Owners are each other's spouses. The
    Beneficiary designation must be the surviving spouse. The first named Owner
    must be the Annuitant. Both Owners must each be at least 55 years old at
    the time of election.
   No Ownership changes or Annuitant changes will be permitted once this
program is elected. However, if the Annuity is co-owned, the Owner that is not
the Annuitant may be removed without affecting the benefit.
   The Spousal Lifetime Five program can be elected at the time that you
purchase your Annuity. We also offer existing Owners the option to elect the
Spousal Lifetime Five program after the Issue Date of their Annuity, subject to
our eligibility rules and restrictions. Your Account Value as the date of
election will be used as a basis to calculate the initial Protected Withdrawal
Value and the Annual Income Amount.
   Currently, if you terminate the program, you will only be permitted to
re-elect the program or elect the Lifetime Five Income Benefit on any
anniversary of the Issue Date that is at least 90 calendar days from the date
the benefit was last terminated.
   We reserve the right to further limit the election frequency in the future.
Before making any such change to the election frequency, we will provide prior
notice to Owners who have an effective Spousal Lifetime Five Income Benefit.

TERMINATION OF THE PROGRAM
The program terminates automatically when your Annual Income Amount equals
zero. You may terminate the program at any time by notifying us. If you
terminate the program, any guarantee provided by the benefit will terminate as
of the date the termination is effective and certain restrictions on
re-election of the benefit will apply as described above. We reserve the right
to further limit the frequency election in the future. The program terminates
upon your surrender of the Annuity, upon the first Designated Life to die if
the Annuity is not continued, upon the second Designated Life to die or upon
your election to begin receiving annuity payments.
   The charge for the Spousal Lifetime Five program will no longer be deducted
from your Account Value upon termination of the program.

<R>
ADDITIONAL TAX CONSIDERATIONS FOR QUALIFIED CONTRACTS/ARRANGEMENTS
If you purchase an Annuity as an investment vehicle for "qualified"
investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or
employer plan under Code Section 401(a), the minimum distribution rules under
the Code require that you begin receiving periodic amounts from your Annuity
beginning after age 70 1/2. For a Tax Sheltered Annuity or a 401(a) plan for
which the participant is not a greater than 5 percent owner of the employer,
this required beginning date can generally be deferred to retirement, if later.
Roth IRAs are not subject to these rules during the Owner's lifetime. The
amount required under the Code may exceed the Annual Income Amount, which will
cause us to increase the Annual Income Amount in any Annuity Year that required
minimum distributions due from your Annuity are greater than such amounts. In
addition, the amount and duration of payments under the annuity payment and
Death Benefit provisions may be adjusted so that the payments do not trigger
any penalty or excise taxes due to tax considerations such as minimum
distribution requirements.
</R>


                                      65




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Death Benefit


WHAT TRIGGERS THE PAYMENT OF A DEATH BENEFIT?

Each Annuity provides a Death Benefit during its accumulation period. If an
Annuity is owned by one or more natural persons, the Death Benefit is payable
upon the first death of an Owner. If an Annuity is owned by an entity, the
Death Benefit is payable upon the Annuitant's death, if there is no Contingent
Annuitant. If a Contingent Annuitant was designated before the Annuitant's
death and the Annuitant dies, then the Contingent Annuitant becomes the
Annuitant and a Death Benefit will not be paid at that time. The person upon
whose death the Death Benefit is paid is referred to below as the "decedent."

BASIC DEATH BENEFIT
Each Annuity provides a basic Death Benefit at no additional charge. The
Insurance Charge we deduct daily from your Account Value allocated to the
Sub-accounts is used, in part, to pay us for the risk we assume in providing
the basic Death Benefit guarantee under an Annuity. Each Annuity also offers
four different optional Death Benefits that can be purchased for an additional
charge. The additional charge is deducted to compensate American Skandia for
providing increased insurance protection under the optional Death Benefits.
Notwithstanding the additional protection provided under the optional Death
Benefits, the additional cost has the impact of reducing the net performance of
the investment options. In addition, with respect to Optimum Plus, under
certain circumstances, your Death Benefit may be reduced by the amount of any
Credits we applied to your Purchase Payments. (See "How are Credits Applied to
My Account Value".)
   The basic Death Benefit is the greater of:
.   The sum of all Purchase Payments less the sum of all proportional
    withdrawals.
<R>
.   The sum of your Account Value in the Sub-accounts and your Interim Value in
    the Fixed Allocations.
</R>

   "Proportional withdrawals" are determined by calculating the percentage of
your Account Value that each prior withdrawal represented when withdrawn. For
example, a withdrawal of 50% of Account Value would be considered as a 50%
reduction in Purchase Payments for purposes of calculating the basic Death
Benefit.

OPTIONAL DEATH BENEFITS
Four optional Death Benefits are offered for purchase with your Annuity to
provide an enhanced level of protection for your beneficiaries.

 Currently, these benefits are only offered in those jurisdictions where we
 have received regulatory approval and must be elected at the time that you
 purchase your Annuity. We may, at a later date, allow existing Annuity Owners
 to purchase an optional Death Benefit subject to our rules and any changes or
 restrictions in the benefits. Certain terms and conditions may differ between
 jurisdictions once approved and if you purchase your Annuity as part of an
 exchange, replacement or transfer, in whole or in part, from any other Annuity
 we issue. The "Combination 5% Roll-up and Highest Anniversary Value" Death
 Benefit may only be elected individually, and cannot be elected in combination
 with any other optional Death Benefit. If you elect Spousal Lifetime Five, you
 are not permitted to elect an optional Death Benefit. With respect to Optimum
 Plus, under certain circumstances, each Optional Death Benefit that you elect
 may be reduced by the amount of Credits applied to your Purchase Payments.

Enhanced Beneficiary Protection Optional Death Benefit
The Enhanced Beneficiary Protection Optional Death Benefit can provide
additional amounts to your Beneficiary that may be used to offset federal and
state taxes payable on any taxable gains in your Annuity at the time of your
death. Whether this benefit is appropriate for you may depend on your
particular circumstances, including other financial resources that may be
available to your Beneficiary to pay taxes on your Annuity should you die
during the accumulation period. No benefit is payable if death occurs on or
after the Annuity Date.
   The Enhanced Beneficiary Protection Optional Death Benefit provides a
benefit that is payable in addition to the basic Death Benefit. If the Annuity
has one Owner, the Owner must be age 75 or less at the time the benefit is
purchased. If an Annuity has joint Owners, the oldest Owner must be age 75 or
less. If an Annuity is owned by an entity, the Annuitant must be age 75 or less.


                                      66




AMERICAN SKANDIA ANNUITIES PROSPECTUS


CALCULATION OF ENHANCED BENEFICIARY PROTECTION OPTIONAL DEATH BENEFIT
If you purchase the Enhanced Beneficiary Protection Optional Death Benefit, the
Death Benefit is calculated as follows:
1. the basic Death Benefit described above;
   PLUS
2. 40% of your "Growth" under an Annuity, as defined below.
   "Growth" means the sum of your Account Value in the Sub-accounts and your
Interim Value in the Fixed Allocations, minus the total of all Purchase
Payments (less the amount of any Credits applied within 12-months prior to the
date of death, with respect to Optimum Plus) reduced by the sum of all
proportional withdrawals.

<R>
   "Proportional withdrawals" are determined by calculating the percentage of
your Account Value that each prior withdrawal represented when withdrawn. For
example, a withdrawal of 50% of Account Value would be considered as a 50%
reduction in Purchase Payments.
</R>

 The Enhanced Beneficiary Protection Optional Death Benefit is subject to a
 maximum of 100% of all Purchase Payments applied to an Annuity at least 12
 months prior to the death of the decedent that triggers the payment of the
 Death Benefit.

 The Enhanced Beneficiary Protection Optional Death Benefit is being offered in
 those jurisdictions where we have received regulatory approval. Certain terms
 and conditions may differ between jurisdictions once approved. Please refer to
 the section entitled "Tax Considerations" for a discussion of special tax
 considerations for purchasers of this benefit. The Enhanced Beneficiary
 Protection Death Benefit is not available if you elect the "Combination 5%
 Roll-up and Highest Anniversary Value" Death Benefit.

   See Appendix B for examples of how the Enhanced Beneficiary Protection
Optional Death Benefit is calculated.

Highest Anniversary Value Death Benefit ("HAV")
If an Annuity has one Owner, the Owner must be age 79 or less at the time the
Highest Anniversary Value Optional Death Benefit is purchased. If an Annuity
has joint Owners, the oldest Owner must be age 79 or less. If an Annuity is
owned by an entity, the Annuitant must be age 79 or less.
   Certain of the Portfolios offered as Sub-accounts under the Annuity are not
available if you elect the Highest Anniversary Value Death Benefit. In
addition, we reserve the right to require you to use certain asset allocation
model(s) if you elect this death benefit.

CALCULATION OF HIGHEST ANNIVERSARY VALUE DEATH BENEFIT
The HAV Death Benefit depends on whether death occurs before or after the Death
Benefit Target Date.
   If the Owner dies before the Death Benefit Target Date, the Death Benefit
equals the greater of:
1. the basic Death Benefit described above; and
2. the Highest Anniversary Value as of the Owner's date of death.
   If the Owner dies on or after the Death Benefit Target Date, the Death
Benefit equals the greater of:
1. the basic Death Benefit described above; and
2. the Highest Anniversary Value on the Death Benefit Target Date plus the sum
   of all Purchase Payments (including any Credits applied to such Purchase
   Payments more than twelve (12) months prior to date of death in the case of
   Optimum Plus) less the sum of all proportional withdrawals since the Death
   Benefit Target Date.

   The amount determined by this calculation is increased by any Purchase
Payments received after the Owner's date of death and decreased by any
proportional withdrawals since such date.

 The Highest Anniversary Value Death Benefit described above is currently being
 offered in those jurisdictions where we have received regulatory approval.
 Certain terms and conditions may differ between jurisdictions once approved.
 The Highest Anniversary Value Death Benefit is not available if you elect the
 "Combination 5% Roll-up and Highest Anniversary Value" or the "Highest Daily
 Value " Death Benefit.

   Please refer to the definition of Death Benefit Target Date below. This
death benefit may not be an appropriate feature where the Owner's age is near
the age specified in the Death Benefit Target Date. This is because the benefit
may not have the same potential for growth as it otherwise would, since there
will be fewer contract anniversaries before the death benefit target date is
reached. The death benefit target date under this death benefit is earlier than
the death benefit target date under the Combination 5% Roll-up and Highest
Anniversary Value Death


                                      67




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Death Benefit continued

Benefit for Owners who are age 76 or older when an Annuity is issued, which may
result in a lower value on the death benefit, since there will be fewer
contract anniversaries before the death benefit target date is reached.
   See Appendix B for examples of how the Highest Anniversary Value Death
Benefit is calculated.

Combination 5% Roll-up and Highest Anniversary Value Death Benefit
If an Annuity has one Owner, the Owner must be age 79 or less at the time the
Combination 5% Roll-up and HAV Optional Death Benefit is purchased. If an
Annuity has joint Owners, the oldest Owner must be age 79 or less. If the
Annuity is owned by an entity, the Annuitant must be age 79 or less.
   Certain of the Portfolios offered as Sub-accounts under an Annuity are not
available if you elect the Combination 5% Roll-up and HAV Death Benefit. In
addition, we reserve the right to require you to use certain asset allocation
model(s) if you elect this Death Benefit.

Calculation of the Combination 5% Roll-up and Highest Anniversary Value Death
Benefit
The Combination 5% Roll-up and HAV Death Benefit equals the greatest of:
1. the basic Death Benefit described above; and
<R>
2. the Highest Anniversary Value Death Benefit described above; and
</R>
3. 5% Roll-up described below.
   The calculation of the 5% Roll-up depends on whether death occurs before or
after the Death Benefit Target Date.
   If the Owner dies before the Death Benefit Target Date the 5% Roll up is
equal to:
.   all Purchase Payments (including any Credits applied to such Purchase
    Payments more than twelve (12) months prior to date of death in the case of
    Optimum Plus) increasing at an annual effective interest rate of 5%
    starting on the date that each Purchase Payment is made and ending on the
    Owner's date of death;
   MINUS
<R>
.   the sum of all withdrawals, dollar for dollar up to 5% of the Death
    Benefit's value as of the prior contract anniversary (or Issue Date if the
    withdrawal is in the first contract year). Any withdrawals in excess of the
    5% dollar for dollar limit are proportional.
</R>
   If the Owner dies on or after the Death Benefit Target Date the 5% Roll-up
is equal to:
.   the 5% Roll-up value as of the Death Benefit Target Date increased by total
    Purchase Payments (including any Credits applied to such Purchase Payments
    more than twelve (12) months prior to date of death in the case of Optimum
    Plus) made after the Death Benefit Target Date;
   MINUS
.   the sum of all withdrawals which reduce the 5% Roll-up proportionally.

   In the case of Optimum Plus, as indicated, the amounts calculated in Items
1, 2 and 3 above (before, on or after the Death Benefit Target Date) may be
reduced by any Credits under certain circumstances. Please refer to the
definitions of Death Benefit Target Date below. This Death Benefit may not be
an appropriate feature where the Owner's age is near the age specified in the
Death Benefit Target Date. This is because the benefit may not have the same
potential for growth as it otherwise would, since there will be fewer Annuity
anniversaries before the Death Benefit Target Date is reached.

 The "Combination 5% Roll-up and Highest Anniversary Value" Death Benefit
 described above is currently being offered in those jurisdictions where we
 have received regulatory approval. Certain terms and conditions may differ
 between jurisdictions once approved. The "Combination 5% Roll-up and Highest
 Anniversary Value" Death Benefit is not available if you elect any other
 optional Death Benefit.

   See Appendix B for examples of how the Combination 5% Roll-up and Highest
Anniversary Value Death Benefit is calculated.
Key Terms Used with the Highest Anniversary Value Death Benefit and the
Combination 5% Roll-up and Highest Anniversary Value Death Benefit:
.   The Death Benefit Target Date for the Highest Anniversary Value Death
    Benefit is the contract anniversary on or after the 80/th /birthday of the
    current Owner, the oldest of either joint Owner or the Annuitant, if entity
    owned.
.   The Death Benefit Target Date for the Combination 5% Roll-up and HAV Death
    Benefit is the later of the contract anniversary on or after the 80/th
    /birthday of the current Owner, the oldest of either joint Owner or the
    Annuitant, if entity owned, or five years after the Issue Date of an
    Annuity.


                                      68




AMERICAN SKANDIA ANNUITIES PROSPECTUS

.   The Highest Anniversary Value equals the highest of all previous
    "Anniversary Values" less proportional withdrawals since such anniversary
    and plus any Purchase Payments (including any Credits applied to such
    Purchase Payments more than twelve (12) months prior to the date of death
    in the case of Optimum Plus) since such anniversary.
.   The Anniversary Value is the Account Value as of each anniversary of the
    Issue Date of an Annuity. The Anniversary Value on the Issue Date is equal
    to your Purchase Payment. (including any Credits applied to such Purchase
    Payments more than twelve (12) months prior to the date of death in the
    case of Optimum Plus)
.   Proportional withdrawals are determined by calculating the percentage of
    your Account Value that each prior withdrawal represented when withdrawn.
    Proportional withdrawals result in a reduction to the Highest Anniversary
    Value or 5% Roll-up value by reducing such value in the same proportion as
    the Account Value was reduced by the withdrawal as of the date the
    withdrawal occurred. For example, if your Highest Anniversary Value or 5%
    Roll-up value is $125,000 and you subsequently withdraw $10,000 at a time
    when your Account Value is equal to $100,000 (a 10% reduction), when
    calculating the optional Death Benefit we will reduce your Highest
    Anniversary Value ($ 125,000) by 10% or $12,500.

Highest Daily Value Death Benefit ("HDV")

<R>
 If an Annuity has one Owner, the Owner must be age 79 or less at the time the
 Highest Daily Value Death Benefit is elected. If an Annuity has joint Owners,
 the older Owner must be age 79 or less. If there are joint Owners, death of
 the Owner refers to the first to die of the joint Owners. If an Annuity is
 owned by an entity, the Annuitant must be age 79 or less and death of the
 Owner refers to the death of the Annuitant.
</R>

    If you elect this benefit, you must allocate your Account Value in
 accordance with the then permitted and available option(s) with this benefit.

   The HDV Death Benefit depends on whether death occurs before or after the
Death Benefit Target Date.
   If the Owner dies before the Death Benefit Target Date, the Death Benefit
equals the greater of:
  1. the basic Death Benefit described above (including any Credits applied to
     such Purchase Payments more than twelve (12) months prior to the date of
     death in the case of Optimum Plus); and
  2. the HDV as of the Owner's date of death.
   If the Owner dies on or after the Death Benefit Target Date, the Death
Benefit equals the greater of:
  1. the basic Death Benefit described above; and
  2. the HDV on the Death Benefit Target Date plus the sum of all Purchase
     Payments (including any Credits applied to such Purchase Payments more
     than twelve (12) months prior to the date of death in the case of Optimum
     Plus) less the sum of all proportional withdrawals since the Death Benefit
     Target Date.
   The amount determined by this calculation is increased by any Purchase
Payments received after the Owner's date of death and decreased by any
proportional withdrawals since such date.

<R>
 The Highest Daily Value Death Benefit described above is currently being
 offered in those jurisdictions where we have received regulatory approval.
 Certain terms and conditions may differ between jurisdictions once approved.
 The Highest Daily Value Death Benefit is not available if you elect the
 Guaranteed Return Option, Guaranteed Return Option Plus, Spousal Lifetime
 Five, the "Combination 5% Roll-up and Highest Anniversary Value" Death
 Benefit, or the Highest Anniversary Value Death Benefit.
</R>

KEY TERMS USED WITH THE HIGHEST DAILY VALUE DEATH BENEFIT:
.   The Death Benefit Target Date for the Highest Daily Value Death Benefit is
    the later of an Annuity anniversary on or after the 80/th /birthday of the
    current Owner, or the older of either the joint Owner or the Annuitant, if
    entity owned, or five years after the Issue Date of an Annuity.
.   The Highest Daily Value equals the highest of all previous "Daily Values"
    less proportional withdrawals since such date and plus any Purchase
    Payments (plus associated Credits in the case of Optimum Plus) since such
    date.
.   The Daily Value is the Account Value as of the end of each Valuation Day.
    The Daily Value on the Issue Date is equal to your Purchase Payment (plus
    associated Credits applied more than twelve (12) months prior to the date
    of death in the case of Optimum Plus).
.   Proportional withdrawals are determined by calculating the percentage of
    your Account Value that each prior withdrawal


                                      69




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Death Benefit continued

<R>
  represented when withdrawn. Proportional withdrawals result in a reduction to
   the Highest Daily Value by reducing such value in the same proportion as the
   Account Value was reduced by the withdrawal as of the date the withdrawal
   occurred. For example, if your Highest Daily Value is $125,000 and you
   subsequently withdraw $10,000 at a time when your Account Value is equal to
   $100,000 (a 10% reduction), when calculating the optional Death Benefit we
   will reduce your Highest Daily Value ($125,000) by 10% or $12,500.
</R>
Please see Appendix B to this prospectus for a hypothetical example of how the
HDV Death Benefit is calculated.

ANNUITIES WITH JOINT OWNERS
<R>
For Annuities with joint Owners, the Death Benefits are calculated as shown
above except that the age of the oldest of the joint Owners is used to
determine the Death Benefit Target Date. NOTE: If you and your spouse own your
Annuity jointly, we will pay the Death Benefit to the Beneficiary. If the sole
primary Beneficiary is the surviving spouse, then the surviving spouse can
elect to assume ownership of your Annuity and continue the Annuity instead of
receiving the Death Benefit.
</R>

ANNUITIES OWNED BY ENTITIES
For Annuities owned by an entity, the Death Benefits are calculated as shown
above except that the age of the Annuitant is used to determine the Death
Benefit Target Date. Payment of the Death Benefit is based on the death of the
Annuitant (or Contingent Annuitant, if applicable).

CAN I TERMINATE THE OPTIONAL DEATH BENEFITS? DO THE OPTIONAL DEATH BENEFITS
TERMINATE UNDER OTHER CIRCUMSTANCES?
You can terminate the Enhanced Beneficiary Protection Death Benefit and the
Highest Anniversary Value Death Benefit at any time. The "Combination 5%
Roll-up and HAV Death Benefit" and the HDV Death Benefit may not be terminated
once elected. The optional Death Benefits will terminate automatically on the
Annuity Date. We may also terminate any optional Death Benefit if necessary to
comply with our interpretation of the Code and applicable regulations.

WHAT ARE THE CHARGES FOR THE OPTIONAL DEATH BENEFITS?
<R>
We deduct a charge equal to 0.25% per year of the average daily net assets of
the Sub-accounts for each of the Highest Anniversary Value Death Benefit and
the Enhanced Beneficiary Protection Death Benefit and 0.50% per year of the
average daily net assets of the Sub-accounts for each of the "Combination 5%
Roll-up and HAV Death Benefit" and the HDV Death Benefit. We deduct the charge
for each of these benefits to compensate American Skandia for providing
increased insurance protection under the optional Death Benefits. The
additional annual charge is deducted daily against your Account Value allocated
to the Sub-accounts.
</R>
   Please refer to the section entitled "Tax Considerations" for additional
considerations in relation to the optional Death Benefit.

AMERICAN SKANDIA'S ANNUITY REWARDS

WHAT IS THE ANNUITY REWARDS BENEFIT IN OPTIMUM, OPTIMUM FOUR AND OPTIMUM PLUS?
The Annuity Rewards Benefit offers Owners the ability to capture any market
gains since the Issue Date of their Annuity as an enhancement to their current
Death Benefit so their Beneficiaries will not receive less than an Annuity's
value as of the effective date of the benefit. Under the Annuity Rewards
Benefit, American Skandia guarantees that the Death Benefit will not be less
than:
.   your Account Value in the Sub-accounts plus the Interim Value in any Fixed
    Allocations as of the effective date of the benefit
.   MINUS any proportional withdrawals* following the effective date of the
    benefit
.   PLUS any additional Purchase Payments applied to your Annuity following the
    effective date of the benefit.
<R>
   The Annuity Rewards Death Benefit enhancement does not affect the
calculation of the basic Death Benefit or any Optional Death Benefits available
under an Annuity. If the Death Benefit amount payable under your Annuity's
basic Death Benefit or any Optional Death Benefits you purchase is greater than
the enhanced Death Benefit under the Annuity Rewards Benefit on the date the
Death Benefit is calculated, your Beneficiary will receive the higher amount.
</R>

WHO IS ELIGIBLE FOR THE ANNUITY REWARDS BENEFIT?
Owners can elect the Annuity Rewards Death Benefit enhancement when there is no
longer a CDSC associated with your Annuity. However, the Account Value on the
date that the Annuity Rewards benefit is effective, must be greater than the
amount that would be payable to the Beneficiary under the Death Benefit
(including any amounts payable under any Optional Death Benefit then in
effect). The effective date must occur before annuity payments begin. There can
only be one effective date for the


* "Proportional withdrawals" are determined by calculating the percentage of
the Account Value that each withdrawal represented when withdrawn. For example,
a withdrawal of 50% of your Account Value would be treated as a 50% reduction
in the amount payable under the Death Benefit.


                                      70




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Annuity Rewards Death Benefit enhancement. There is no additional charge for
electing the Annuity Rewards Death Benefit enhancement.

PAYMENT OF DEATH BENEFITS

PAYMENT OF DEATH BENEFIT TO BENEFICIARY
Except in the case of a spousal assumption as described below, in the event of
your death, the Death Benefit must be distributed:
.   as a lump sum amount at any time within five (5) years of the date of
    death; or
.   as a series of annuity payments not extending beyond the life expectancy of
    the Beneficiary or over the life of the Beneficiary. Payments under this
    option must begin within one year of the date of death.
   Unless you have made an election prior to Death Benefit proceeds becoming
due, a Beneficiary can elect to receive the Death Benefit proceeds as a series
of fixed annuity payments (annuity payment options 1-4) or as a series of
variable annuity payments (annuity payment options 1-3 or 5 and 6). See the
section entitled "What Types of Annuity Options are Available."

SPOUSAL BENEFICIARY -- ASSUMPTION OF ANNUITY
You may name your spouse as your Beneficiary. If you and your spouse own your
Annuity jointly, we assume that the sole primary Beneficiary will be the
surviving spouse unless you elect an alternative Beneficiary designation.
Unless you elect an alternative Beneficiary designation, the spouse Beneficiary
may elect to assume ownership of the Annuity instead of taking the Death
Benefit payment. Any Death Benefit (including any optional Death Benefits) that
would have been payable to the Beneficiary will become the new Account Value as
of the date we receive due proof of death and any required proof of a spousal
relationship. As of the date the assumption is effective, the surviving spouse
will have all the rights and benefits that would be available under the Annuity
to a new purchaser of the same attained age. For purposes of determining any
future Death Benefit for the surviving spouse, the new Account Value will be
considered as the initial Purchase Payment. No CDSC will apply to the new
Account Value. However, any additional Purchase Payments applied after the date
the assumption is effective will be subject to all provisions of the Annuity,
including any CDSC that may apply to the additional Purchase Payments.
   See the section entitled "Managing Your Annuity -- Spousal Contingent
Annuitant" for a discussion of the treatment of a spousal Contingent Annuitant
in the case of the death of the Annuitant in an entity owned Annuity.

QUALIFIED BENEFICIARY CONTINUATION OPTION
The Code provides for alternative death benefit payment options when an Annuity
is used as an IRA, 403(b) or other "qualified investment" that requires Minimum
Distributions. Upon the Owner's death under an IRA, 403(b) or other "qualified
investment", a Beneficiary may generally elect to continue the Annuity and
receive Minimum Distributions under the Annuity instead of receiving the death
benefit in a single payment. The available payment options will depend on
whether the Owner died on or before the date he or she was required to begin
receiving Minimum Distributions under the Code and whether the Beneficiary is
the surviving spouse.
.   If death occurs before the date Minimum Distributions must begin under the
    Code, the Death Benefit can be paid out in either a lump sum, within five
    years from the date of death, or over the life or life expectancy of the
    designated Beneficiary (as long as payments begin by December 31/st /of the
    year following the year of death). However, if the spouse is the
    Beneficiary, the Death Benefit can be paid out over the life or life
    expectancy of the spouse with such payments beginning no earlier than
    December 31/st /of the year following the year of death or December 31/st
    /of the year in which the deceased would have reached age 70 1/2, which
    ever is later.
.   If death occurs after the date Minimum Distributions must begin under the
    Code, the Death Benefit must be paid out at least as rapidly as under the
    method then in effect.
   A Beneficiary has the flexibility to take out more each year than required
under the Minimum Distribution rules. Until withdrawn, amounts in an IRA,
403(b) or other "qualified investment" continue to be tax deferred. Amounts
withdrawn each year, including amounts that are required to be withdrawn under
the Minimum Distribution rules, are subject to tax. You may wish to consult a
professional tax advisor for tax advice as to your particular situation.
   For a Roth IRA, if death occurs before the entire interest is distributed,
the Death Benefit must be distributed under the same rules applied to IRAs
where death occurs before the date Minimum Distributions must begin under the
Code.
   Upon election of this Qualified Beneficiary Continuation option:
.   the Owner's Annuity contract will be continued in the Owner's name, for the
    benefit of the Beneficiary.
.   the Beneficiary will be charged at an amount equal to 1.40% daily against
    the average daily assets allocated to the Sub-accounts.


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AMERICAN SKANDIA ANNUITIES PROSPECTUS

Death Benefit continued

.   the Account Value will be equal to any Death Benefit (including any
    optional Death Benefit) that would have been payable to the Beneficiary if
    they had taken a lump sum distribution.
.   the Beneficiary may request transfers among Sub-accounts, subject to the
    same limitations and restrictions that applied to the Owner, except that
    the Sub-accounts offered will be those offered under the Qualified
    Beneficiary Continuation option at the time the option is elected.
.   the Fixed Allocations will be those offered under the Qualified Beneficiary
    Continuation option at the time the option is elected.
.   no additional Purchase Payments can be applied to the Annuity.
.   other optional Benefits will be those offered under the Qualified
    Beneficiary Continuation option at the time of election.
.   the basic Death Benefit and any optional Death Benefits elected by the
    Owner will no longer apply to the Beneficiary. / /
.   the Beneficiary can request a withdrawal of all or a portion of the Account
    Value at any time without application of any applicable CDSC.
.   upon the death of the Beneficiary, any remaining Account Value will be paid
    in a lump sum to the person(s) named by the Beneficiary.
.   all amounts in the Annuity must be paid out to the Beneficiary according to
    the Minimum Distribution rules described above.
   Your Beneficiary will be provided with a prospectus and settlement option
that will describe this option at the time he or she elects this option. Please
contact American Skandia for additional information on the availability,
restrictions and limitations that will apply to a Beneficiary under the
Qualified Beneficiary Continuation option.

ARE THERE ANY EXCEPTIONS TO THESE RULES FOR PAYING THE DEATH BENEFIT?
Yes, there are exceptions that apply no matter how your Death Benefit is
calculated. There are exceptions to the Death Benefit if the decedent was not
the Owner or Annuitant as of the Issue Date (or within 60 days thereafter) and
did not become the Owner or Annuitant due to the prior Owner's or Annuitant's
death. Any Death Benefit (including any optional Death Benefit) that applies
will be suspended for a two-year period from the date he or she first became
Owner or Annuitant. After the two-year suspension period is completed, the
Death Benefit is the same as if this person had been an Owner or Annuitant on
the Issue Date.

WHEN DO YOU DETERMINE THE DEATH BENEFIT?
We determine the amount of the Death Benefit as of the date we receive "due
proof of death", any instructions we require to determine the method of payment
and any other written representations we require to determine the proper
payment of the Death Benefit to all Beneficiaries. "Due proof of death" may
include a certified copy of a death certificate, a certified copy of a decree
of a court of competent jurisdiction as to the finding of death or other
satisfactory proof of death. Upon our receipt of "due proof of death" we
automatically transfer the Death Benefit to the AST Money Market Sub-account
until we further determine the universe of eligible Beneficiaries. Once the
universe of eligible Beneficiaries has been determined each eligible
Beneficiary may allocate his or her eligible share of the Death Benefit to an
eligible annuity payment option.
   Each Beneficiary must make an election as to the method they wish to receive
their portion of the Death Benefit. Absent an election of a Death Benefit
payment method, no Death Benefit can be paid to the Beneficiary. We may require
written acknowledgment of all named Beneficiaries before we can pay the Death
Benefit. During the period from the date of death until we receive all required
paper work, the amount of the Death Benefit may be subject to market
fluctuations.


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AMERICAN SKANDIA ANNUITIES PROSPECTUS

Valuing Your Investment


HOW IS MY ACCOUNT VALUE DETERMINED?
<R>
During the accumulation period, your Annuity has an Account Value. The Account
Value is determined separately for each Sub-account allocation and for each
Fixed Allocation. The Account Value is the sum of the values of each
Sub-account allocation and the value of each Fixed Allocation. The Account
Value does not reflect any CDSC that may apply to a withdrawal or surrender.
With respect to Optimum and Optimum Four, the Account Value includes any
Loyalty Credit we apply. With respect to Optimum Plus, the Account Value
includes any Credits we applied to your Purchase Payments which we are entitled
to take back under certain circumstances. When determining the Account Value on
a day more than 30 days prior to a Fixed Allocation's Maturity Date, the
Account Value may include any Market Value Adjustment that would apply to a
Fixed Allocation (if withdrawn or transferred) on that day.
</R>

WHAT IS THE SURRENDER VALUE OF MY ANNUITY?
The Surrender Value of your Annuity is the value available to you on any day
during the accumulation period. The Surrender Value is defined under "Glossary
of Terms" above.

HOW AND WHEN DO YOU VALUE THE SUB-ACCOUNTS?
When you allocate Account Value to a Sub-account, you are purchasing units of
the Sub-account. Each Sub-account invests exclusively in shares of an
underlying Portfolio. The value of the Units fluctuates with the market
fluctuations of the Portfolios. The value of the Units also reflects the daily
accrual for the Insurance Charge, the Distribution Charge (if applicable), and
if you elected one or more optional benefits whose annual charge is deducted
daily, the additional charge made for such benefits. There may be several
different Unit Prices for each Sub-account to reflect the Insurance Charge, any
Distribution Charge and the charges for any optional benefits. The Unit Price
for the Units you purchase will be based on the total charges for the benefits
that apply to your Annuity. See the section entitled "What Happens to My Units
When There is a Change in Daily Asset-Based Charges?" for a detailed discussion
of how Units are purchased and redeemed to reflect changes in the daily charges
that apply to your Annuity.
   Each Valuation Day, we determine the price for a Unit of each Sub-account,
called the "Unit Price." The Unit Price is used for determining the value of
transactions involving Units of the Sub-accounts. We determine the number of
Units involved in any transaction by dividing the dollar value of the
transaction by the Unit Price of the Sub-account as of the Valuation Day.

EXAMPLE
Assume you allocate $5,000 to a Sub-account. On the Valuation Day you make the
allocation, the Unit Price is $14.83. Your $5,000 buys 337.154 Units of the
Sub-account. Assume that later, you wish to transfer $3,000 of your Account
Value out of that Sub-account and into another Sub-account. On the Valuation
Day you request the transfer, the Unit Price of the original Sub-account has
increased to $16.79. To transfer $3,000, we sell 178.677 Units at the current
Unit Price, leaving you 158.477 Units. We then buy $3,000 of Units of the new
Sub-account at the Unit Price of $17.83. You would then have 168.255 Units of
the new Sub-account.

HOW DO YOU VALUE FIXED ALLOCATIONS?
During the Guarantee Period, we use the concept of an Interim Value. The
Interim Value can be calculated on any day and is equal to the initial value
allocated to a Fixed Allocation plus all interest credited to a Fixed
Allocation as of the date calculated. The Interim Value does not include the
impact of any Market Value Adjustment. If you made any transfers or withdrawals
from a Fixed Allocation, the Interim Value will reflect the withdrawal of those
amounts and any interest credited to those amounts before they were withdrawn.
To determine the Account Value of a Fixed Allocation on any day more than 30
days prior to its Maturity Date, we multiply the Account Value of the Fixed
Allocation times the Market Value Adjustment factor.

WHEN DO YOU PROCESS AND VALUE TRANSACTIONS?
American Skandia is generally open to process financial transactions on those
days that the New York Stock Exchange (NYSE) is open for trading. There may be
circumstances where the NYSE does not open on a regularly scheduled date or
time or closes at an earlier time than scheduled (normally 4:00 p.m. EST).
Financial transactions requested before the close of the NYSE which meet our
requirements will be processed according to the value next determined following
the close of business. Financial transactions requested on a non-business day
or after the close of the NYSE will be processed based on the value next
computed on the next Valuation Day. There may be circumstances when the opening
or closing time of the NYSE is different than other major stock exchanges, such
as NASDAQ or the American Stock Exchange. Under such circumstances, the closing
time of the NYSE will be used when valuing and processing transactions.


                                      73




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Valuing Your Investment continued

   There may be circumstances where the NYSE is open, however, due to inclement
weather, natural disaster or other circumstances beyond our control, our
offices may be closed or our business processing capabilities may be
restricted. Under those circumstances, your Account Value may fluctuate based
on changes in the Unit Values, but you may not be able to transfer Account
Value, or make a purchase or redemption request.
   The NYSE is closed on the following nationally recognized holidays: New
Year's Day, Martin Luther King, Jr. Day, Washington's Birthday, Good Friday,
Memorial Day, Independence Day, Labor Day, Thanksgiving, and Christmas. On
those dates, we will not process any financial transactions involving purchase
or redemption orders.
   American Skandia will also not process financial transactions involving
purchase or redemption orders or transfers on any day that:
.   trading on the NYSE is restricted;
.   an emergency exists making redemption or valuation of securities held in
    the separate account impractical; or
.   the SEC, by order, permits the suspension or postponement for the
    protection of security holders.

   Initial Purchase Payments: We are required to allocate your initial Purchase
Payment to the Sub-accounts within two (2) business days after we receive all
of our requirements at our office to issue an Annuity. If we do not have all
the required information to allow us to issue your Annuity, we may retain the
Purchase Payment while we try to reach you or your representative to obtain all
of our requirements. If we are unable to obtain all of our required information
within five (5) business days, we are required to return the Purchase Payment
to you at that time, unless you specifically consent to our retaining the
Purchase Payment (and any associated Credit with respect to Optimum Plus) while
we gather the required information. Once we obtain the required information, we
will invest the Purchase Payment and issue an Annuity within two (2) business
days. During any period that we are trying to obtain the required information,
your money is not invested.

<R>
   Additional Purchase Payments: We will apply any additional Purchase Payments
(and any associated Credit with respect to Optimum Plus) on the Valuation Day
that we receive the Purchase Payment at our office with satisfactory allocation
instructions.
</R>

<R>
   Scheduled Transactions: Scheduled transactions include transfers made in
connection with dollar cost averaging, the asset allocation program,
auto-rebalancing, systematic withdrawals, systematic investments, required
minimum distributions, substantially equal periodic payments under section
72(t) of the Code, or annuity payments. Scheduled transactions are processed
and valued as of the date they are scheduled, unless the scheduled day is not a
business day. In that case, the transaction will be processed and valued on the
next business day, unless (with respect to required minimum distributions,
substantially equal periodic payments under Section 72(t) of the Code,
systematic withdrawals and annuity payments only), the next business day falls
in the subsequent calendar year, in which case the transaction will be
processed and valued on the prior business day.
</R>

   Unscheduled Transactions: "Unscheduled" transactions include any other
non-scheduled transfers and requests for Partial Withdrawals or Free
Withdrawals or Surrenders. Unscheduled transactions are processed and valued as
of the Valuation Day we receive the request at our Office and have all of the
required information.

<R>
   Death Benefits: Death Benefit claims require our review and evaluation
before processing. We price such transactions as of the date we receive at our
office all supporting documentation we require for such transactions and that
are satisfactory to us.
</R>

   Medically-related Surrenders & Death Benefits: Medically-related surrender
requests and Death Benefit claims require our review and evaluation before
processing. We price such transactions as of the date we receive at our Office
all supporting documentation we require for such transactions and that are
satisfactory to us.

WHAT HAPPENS TO MY UNITS WHEN THERE IS A CHANGE IN DAILY ASSET-BASED CHARGES?
Distribution Charge Applicable to Optimum and Optimum Plus: At the end of the
Period during which the Distribution Charge applies, your Annuity will become
subject to a different daily asset-based charge. We will process a transaction
where your Account Value allocated to the Sub-accounts will be used to purchase
new Units of the Sub-accounts that reflect the Insurance Charge (and the charge
for any optional benefits you have elected) but not the Distribution Charge.
The number of Units attributed to your Annuity will be decreased and the Unit
Price of each unit of the Sub-accounts in which you invested will be increased.
The adjustment in the number of Units and Unit Price will not affect your
Account Value. Beginning on that


                                      74




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Tax Considerations

The tax considerations associated with each Annuity vary depending on whether
the contract is (i) owned by an individual and not associated with a
tax-favored retirement plan (including contracts held by a non-natural person,
such as a trust acting as an agent for a natural person), or (ii) held under a
tax-favored retirement plan. We discuss the tax considerations for these
categories of contracts below. The discussion is general in nature and
describes only federal income tax law (not state or other tax laws). It is
based on current law and interpretations, which may change. The discussion
includes a description of certain spousal rights under the contract and under
tax-qualified plans. Our administration of such spousal rights and related tax
reporting accords with our understanding of the Defense of Marriage Act (which
defines a "marriage" as a legal union between a man and a woman and a "spouse"
as a person of the opposite sex). The information provided is not intended as
tax advice. You should consult with a qualified tax advisor for complete
information and advice. References to Purchase Payments below relates to your
cost basis in your contract. Generally, your cost basis in a contract not
associated with a tax-favored retirement plan is the amount you pay into your
contract, or into annuities exchanged for your contract, on an after-tax basis
less any withdrawals of such payments.
<R>
   Each Annuity may also be purchased as a non-qualified annuity by a 401(a)
trust or custodial IRA or Roth IRA account, which can hold other permissible
assets other than the annuity. The terms and administration of the trust or
custodial account in accordance with the laws and regulations for 401(a) plans,
IRAs or Roth IRAs, as applicable, are the responsibility of the applicable
trustee or custodian.
</R>

CONTRACTS OWNED BY INDIVIDUALS (NOT ASSOCIATED WITH TAX-FAVORED RETIREMENT
PLANS)

TAXES PAYABLE BY YOU
We believe each Annuity is an annuity contract for tax purposes. Accordingly,
as a general rule, you should not pay any tax until you receive money under the
contract.
   Generally, annuity contracts issued by the same company (and affiliates) to
you during the same calendar year must be treated as one annuity contract for
purposes of determining the amount subject to tax under the rules described
below.
   It is possible that the Internal Revenue Service (IRS) would assert that
some or all of the charges for the optional benefits under the contract should
be treated for federal income tax purposes as a partial withdrawal from the
contract. If this were the case, the charge for this benefit could be deemed a
withdrawal and treated as taxable to the extent there are earnings in the
contract. Additionally, for owners under age 59 1/2, the taxable income
attributable to the charge for the benefit could be subject to a tax penalty.
   If the IRS determines that the charges for one or more benefits under the
contract are taxable withdrawals, then the sole or surviving owner will be
provided with a notice from us describing available alternatives regarding
these benefits.
   If you choose to defer the Annuity Date beyond the default date for your
Annuity, the IRS may not consider your contract to be an annuity under the tax
law. For more information, see "How and When Do I Choose the Annuity Payment
Option?".

TAXES ON WITHDRAWALS AND SURRENDER
If you make a withdrawal from your contract or surrender it before annuity
payments begin, the amount you receive will be taxed as ordinary income, rather
than as return of Purchase Payments, until all gain has been withdrawn. You
will generally be taxed on any withdrawals from the contract while you are
alive even if the withdrawal is paid to someone else.
   If you assign or pledge all or part of your contract as collateral for a
loan, the part assigned generally will be treated as a withdrawal.
   If you transfer your contract for less than full consideration, such as by
gift, you will trigger tax on any gain in the contract. This rule does not
apply if you transfer the contract to your spouse or under most circumstances
if you transfer the contract incident to divorce.

TAXES ON ANNUITY PAYMENTS
A portion of each annuity payment you receive will be treated as a partial
return of your Purchase Payments and will not be taxed. The remaining portion
will be taxed as ordinary income. Generally, the nontaxable portion is
determined by multiplying the annuity payment you receive by a fraction, the
numerator of which is your Purchase Payments (less any amounts previously
received tax-free) and the denominator of which is the total expected payments
under the contract.
<R>
   After the full amount of your Purchase Payments have been recovered
tax-free, the full amount of the annuity payments will be taxable. If annuity
payments stop due to the death of the annuitant before the full amount of your
Purchase Payments have been recovered, a tax deduction may be allowed for the
unrecovered amount.
</R>


                                      76




AMERICAN SKANDIA ANNUITIES PROSPECTUS


TAX PENALTY ON WITHDRAWALS AND ANNUITY PAYMENTS
Any taxable amount you receive under your contract may be subject to a 10% tax
penalty. Amounts are not subject to this tax penalty if:
.   the amount is paid on or after you reach age 59 1/2 or die;
.   the amount received is attributable to your becoming disabled;
.   generally the amount paid or received is in the form of substantially equal
    payments not less frequently than annually (Please note that substantially
    equal payments must continue until the later of reaching age 59 1/2 or 5
    years. Modification of payments during that time period will result in
    retroactive application of the 10% tax penalty.); or
.   the amount received is paid under an immediate annuity contract (in which
    annuity payments begin within one year of purchase).

SPECIAL RULES IN RELATION TO TAX-FREE EXCHANGES UNDER SECTION 1035
Section 1035 of the Internal Revenue Code of 1986, as amended (Code) permits
certain tax-free exchanges of a life insurance, annuity or endowment contract
for an annuity. If an Annuity is purchased through a tax-free exchange of a
life insurance, annuity or endowment contract that was purchased prior to
August 14, 1982, then any Purchase Payments made to the original contract prior
to August 14, 1982 will be treated as made to the new contract prior to that
date. (See Federal Tax Status section in the Statement of Additional
Information.)
   Partial surrenders may be treated in the same way as tax-free 1035 exchanges
of entire contracts, therefore avoiding current taxation of any gains in the
contract as well as the 10% tax penalty on pre-age 59 1/2 withdrawals. The IRS
has reserved the right to treat transactions it considers abusive as ineligible
for this favorable partial 1035 exchange treatment. We do not know what
transactions may be considered abusive. For example we do not know how the IRS
may view early withdrawals or annuitizations after a partial exchange. In
addition, it is unclear how the IRS will treat a partial exchange from a life
insurance, endowment, or annuity contract into an immediate annuity. As of the
date of this prospectus, we will accept a partial 1035 exchange from a
non-qualified annuity into an immediate annuity as a "tax-free" exchange for
future tax reporting purposes, except to the extent that we, as a reporting and
withholding agent, believe that we would be expected to deem the transaction to
be abusive. However, some insurance companies may not recognize these partial
surrenders as tax-free exchanges and may report them as taxable distributions
to the extent of any gain distributed as well as subjecting the taxable portion
of the distribution to the 10% tax penalty. We strongly urge you to discuss any
transaction of this type with your tax advisor before proceeding with the
transaction.

TAXES PAYABLE BY BENEFICIARIES
The Death Benefit options are subject to income tax to the extent the
distribution exceeds the cost basis in the contract. The value of the Death
Benefit, as determined under federal law, is also included in the owner's
estate.
   Generally, the same tax rules described above would also apply to amounts
received by your beneficiary. Choosing any option other than a lump sum Death
Benefit may defer taxes. Certain minimum distribution requirements apply upon
your death, as discussed further below.
   Tax consequences to the beneficiary vary among the Death Benefit payment
options.
.   Choice 1: the beneficiary is taxed on earnings in the contract.
.   Choice 2: the beneficiary is taxed as amounts are withdrawn (in this case
    earnings are treated as being distributed first).
.   Choice 3: the beneficiary is taxed on each payment (part will be treated as
    earnings and part as return of premiums).

Considerations for Contingent Annuitants: There may be adverse tax consequences
if a Contingent Annuitant succeeds an Annuitant when an Annuity is owned by a
trust that is neither tax exempt nor qualifies for preferred treatment under
certain sections of the Code. In general, the Code is designed to prevent
indefinite deferral of tax. Continuing the benefit of tax deferral by naming
one or more Contingent Annuitants when an Annuity is owned by a non-qualified
trust might be deemed an attempt to extend the tax deferral for an indefinite
period. Therefore, adverse tax treatment may depend on the terms of the trust,
who is named as Contingent Annuitant, as well as the particular facts and
circumstances. You should consult your tax advisor before naming a Contingent
Annuitant if you expect to use an Annuity in such a fashion.

REPORTING AND WITHHOLDING ON DISTRIBUTIONS
<R>
Taxable amounts distributed from an Annuity contract are subject to federal and
state income tax reporting and withholding. In general, we will withhold
federal income tax from the taxable portion of such distribution based on the
type of distribution. In the case of an annuity or similar periodic payment, we
will withhold as if you are a married individual with 3 exemptions unless you
designate a different withholding status. In the case of
</R>


                                      77




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Tax Considerations continued

all other distributions, we will withhold at a 10% rate. You may generally
elect not to have tax withheld from your payments. An election out of
withholding must be made on forms that we provide.
   State income tax withholding rules vary and we will withhold based on the
rules of your State of residence. Special tax rules apply to withholding for
nonresident aliens, and we generally withhold income tax for nonresident aliens
at a 30% rate. A different withholding rate may be applicable to a nonresident
alien based on the terms of an existing income tax treaty between the United
States and the nonresident alien's country. Please refer to the discussion
below regarding withholding rules for tax favored plans (for example, an IRA).
   Regardless of the amount withheld by us, you are liable for payment of
federal and state income tax on the taxable portion of annuity distributions.
You should consult with your tax advisor regarding the payment of the correct
amount of these income taxes and potential liability if you fail to pay such
taxes.

ANNUITY QUALIFICATION
Diversification And Investor Control. In order to qualify for the tax rules
applicable to annuity contracts described above, the assets underlying the
Sub-accounts of an Annuity must be diversified, according to certain rules. We
believe these diversification rules will be met.
   An additional requirement for qualification for the tax treatment described
above is that we, and not you as the contract owner, must have sufficient
control over the underlying assets to be treated as the owner of the underlying
assets for tax purposes. While we also believe these investor control rules
will be met, the Treasury Department may promulgate guidelines under which a
variable annuity will not be treated as an annuity for tax purposes if persons
with ownership rights have excessive control over the investments underlying
such variable annuity. It is unclear whether such guidelines, if in fact
promulgated, would have retroactive effect. It is also unclear what effect, if
any, such guidelines may have on transfers between the investment options
offered pursuant to this Prospectus. We will take any action, including
modifications to your Annuity or the investment options, required to comply
with such guidelines if promulgated.
   Please refer to the Statement of Additional information for further
information on these Diversification and Investor Control issues.
   Required Distributions Upon Your Death. Upon your death, certain
distributions must be made under the contract. The required distributions
depend on whether you die before you start taking annuity payments under the
contract or after you start taking annuity payments under the contract.
   If you die on or after the Annuity Date, the remaining portion of the
interest in the contract must be distributed at least as rapidly as under the
method of distribution being used as of the date of death.
   If you die before the Annuity Date, the entire interest in the contract must
be distributed within 5 years after the date of death. However, if a periodic
payment option is selected by your designated beneficiary and if such payments
begin within 1 year of your death, the value of the contract may be distributed
over the beneficiary's life or a period not exceeding the beneficiary's life
expectancy. Your designated beneficiary is the person to whom benefit rights
under the contract pass by reason of death, and must be a natural person in
order to elect a periodic payment option based on life expectancy or a period
exceeding five years.
   If an Annuity is payable to (or for the benefit of) your surviving spouse,
that portion of the contract may be continued with your spouse as the owner.
   Changes In Your Annuity. We reserve the right to make any changes we deem
necessary to assure that your Annuity qualifies as an annuity contract for tax
purposes. Any such changes will apply to all contract owners and you will be
given notice to the extent feasible under the circumstances.

ADDITIONAL INFORMATION
You should refer to the Statement of Additional Information if:
.   The contract is held by a corporation or other entity instead of by an
    individual or as agent for an individual.
.   Your contract was issued in exchange for a contract containing purchase
    payments made before August 14, 1982.
.   You transfer your contract to, or designate, a beneficiary who is either
    37 1/2 years younger than you or a grandchild.

CONTRACTS HELD BY TAX-FAVORED PLANS
The following discussion covers annuity contracts held under tax-favored
retirement plans.
<R>
   Currently, an Annuity may be purchased for use in connection with individual
retirement accounts and annuities (IRAs) which are subject to Sections 408(a)
and 408(b) of the Code and Roth IRAs under Section 408A of the Code. In
addition, each Annuity may be purchased for use in connection with a corporate
Pension or Profit-sharing plan (subject to 401(a) of the Code), H.R. 10 plans
(also known as Keogh Plans, subject to 401(a) of the Code), Tax Sheltered
Annuities (subject to 403(b) of the Code, also known as Tax Deferred Annuities
or TDAs), and Section 457 plans (subject
</R>


                                      78




AMERICAN SKANDIA ANNUITIES PROSPECTUS

to 457 of the Code). This description assumes that you have satisfied the
requirements for eligibility for these products.
<R>
   Each Annuity may also be purchased as a non-qualified annuity by a 401(a)
trust or custodial IRA or Roth IRA account, which can hold other permissible
assets other than the annuity. The terms and administration of the trust or
custodial account in accordance with the laws and regulations for 401(a) plans,
IRAs or Roth IRAs, as applicable, are the responsibility of the applicable
trustee or custodian.
</R>
   You should be aware that tax favored plans such as IRAs generally provide
income tax deferral regardless of whether they invest in annuity contracts.
This means that when a tax favored plan invests in an annuity contract, it
generally does not result in any additional tax benefits (such as income tax
deferral and income tax free transfers).

TYPES OF TAX-FAVORED PLANS
IRAs. If you buy an Annuity for use as an IRA, we will provide you a copy of
the prospectus and contract. The "IRA Disclosure Statement" contains
information about eligibility, contribution limits, tax particulars, and other
IRA information. In addition to this information (some of which is summarized
below), the IRS requires that you have a "free-look" after making an initial
contribution to the contract. During this time, you can cancel the Annuity by
notifying us in writing, and we will refund all of the Purchase Payments under
the Annuity (or, if provided by applicable state law, the amount credited under
the Annuity, if greater), less any applicable federal and state income
tax withholding.
<R>
   Contributions Limits/Rollovers. Because of the way each Annuity is designed,
you may purchase an Annuity for an IRA in connection with a "rollover" of
amounts from a qualified retirement plan or as a transfer from another IRA, as
a current contribution in the case of Optimum, or if your are age 50 or older
by making a single contribution consisting of your IRA contributions and
catch-up contributions attributable to the prior year and the current year from
January 1 to April 15 of the current year in the case of Optimum Plus and
Optimum Four. In 2006 the contribution limit is $4,000; increasing to $5,000 in
2008. After 2008 the contribution amount will be indexed for inflation. The tax
law also provides for a catch-up provision for individuals who are age 50 and
above, permitting them to contribute an additional $1,000 each year.
</R>
   The "rollover" rules under the Code are fairly technical; however, an
individual (or his or her surviving spouse) may generally "roll over" certain
distributions from tax favored retirement plans (either directly or within 60
days from the date of these distributions) if he or she meets the requirements
for distribution. Once you buy an Annuity, you can make regular IRA
contributions under the Annuity (to the extent permitted by law). However, if
you make such regular IRA contributions, you should note that you will not be
able to treat the contract as a "conduit IRA," which means that you will not
retain possible favorable tax treatment if you subsequently "roll over" the
contract funds originally derived from a qualified retirement plan or TDA into
another Section 401(a) plan or TDA.
   Required Provisions. Contracts that are IRAs (or endorsements that are part
of the contract) must contain certain provisions:
.   You, as owner of the contract, must be the "annuitant" under the contract
    (except in certain cases involving the division of property under a decree
    of divorce);
.   Your rights as owner are non-forfeitable;
.   You cannot sell, assign or pledge the contract;
.   The annual contribution you pay cannot be greater than the maximum amount
    allowed by law, including catch-up contributions if applicable (which does
    not include any rollover amounts);
.   The date on which required minimum distributions must begin cannot be later
    than April 1st of the calendar year after the calendar year you turn age
    70 1/2; and
.   Death and annuity payments must meet "minimum distribution requirements"
    described below.

   Usually, the full amount of any distribution from an IRA (including a
distribution from this contract) which is not a rollover is taxable. As taxable
income, these distributions are subject to the general tax withholding rules
described earlier. In addition to this normal tax liability, you may also be
liable for the following, depending on your actions:
.   A 10% "early distribution penalty" described below;
.   Liability for "prohibited transactions" if you, for example, borrow against
    the value of an IRA; or
.   Failure to take a minimum distribution also described below.

   SEPs. SEPs are a variation on a standard IRA, and contracts issued to a SEP
must satisfy the same general requirements described under IRAs (above). There
are, however, some differences:
.   If you participate in a SEP, you generally do not include in income any
    employer contributions made to the SEP on your


                                      79




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Tax Considerations continued

  behalf up to the lesser of (a) $44,000 in 2006 or (b) 25% of your taxable
   compensation paid by the contributing employer (not including the employer's
   SEP contribution as "compensation" for these purposes). However, for these
   purposes, compensation in excess of certain limits established by the IRS
   will not be considered. In 2006, this limit is $220,000;
.   SEPs must satisfy certain participation and nondiscrimination requirements
    not generally applicable to IRAs; and
.   SEPs that contain a salary reduction or "SARSEP" provision prior to 1997
    may permit salary deferrals up to $15,000 in 2006 with the employer making
    these contributions to the SEP. However, no new "salary reduction" or
    "SARSEPs" can be established after 1996. Individuals participating in a
    SARSEP who are age 50 or above by the end of the year will be permitted to
    contribute an additional $5,000 in 2006. Thereafter, the amount is indexed
    for inflation. These Annuities are not available for SARSEPs.

   You will also be provided the same information, and have the same
"free-look" period, as you would have if you purchased the contract for a
standard IRA.
<R>
   ROTH IRAs. The "Roth IRA Disclosure Statement" contains information about
eligibility, contribution limits, tax particulars and other Roth IRA
information. Like standard IRAs, income within a Roth IRA accumulates tax-free,
and contributions are subject to specific limits. Roth IRAs have, however, the
following differences:
</R>
.   Contributions to a Roth IRA cannot be deducted from your gross income;
.   "Qualified distributions" from a Roth IRA are excludable from gross income.
    A "qualified distribution" is a distribution that satisfies two
    requirements: (1) the distribution must be made (a) after the owner of the
    IRA attains age 59 1/2; (b) after the owner's death; (c) due to the owner's
    disability; or (d) for a qualified first time homebuyer distribution within
    the meaning of Section 72(t)(2)(F) of the Code; and (2) the distribution
    must be made in the year that is at least five tax years after the first
    year for which a contribution was made to any Roth IRA established for the
    owner or five years after a rollover, transfer, or conversion was made from
    a traditional IRA to a Roth IRA. Distributions from a Roth IRA that are not
    qualified distributions will be treated as made first from contributions
    and then from earnings, and earnings will be taxed generally in the same
    manner as distributions from a traditional IRA.
.   If eligible (including meeting income limitations and earnings
    requirements), you may make contributions to a Roth IRA after attaining age
    70 1/2, and distributions are not required to begin upon attaining such age
    or at any time thereafter.

<R>
   Because of the way each Annuity is designed, if you meet certain income
limitations you may purchase an Annuity for a Roth IRA, as a current
contribution in the case of Optimum or if you are age 50 or older by making a
single contribution consisting of your Roth IRA contributions and catch-up
contributions attributable to the prior year and the current year from January
1 to April 15 of the current year in the case of Optimum Plus and Optimum Four.
The Code permits persons who meet certain income limitations (generally,
adjusted gross income under $100,000), who are not married filing a separate
return and who receive certain qualifying distributions from such non-Roth
IRAs, to directly rollover or make, within 60 days, a "rollover" of all or any
part of the amount of such distribution to a Roth IRA which they establish.
This conversion triggers current taxation (but is not subject to a 10% early
distribution penalty). Once an Annuity has been purchased, regular Roth IRA
contributions will be accepted to the extent permitted by law. As of January 1,
2006, an individual receiving an eligible rollover distribution from a
designated Roth account under an employer plan may roll over the distribution
to a Roth IRA even if the individual is not eligible to make regular or
conversion contributions to a Roth IRA. If you are considering rolling over
funds from your Roth account under an employer plan, please contact your
Financial Professional prior to purchase to confirm whether such rollovers are
being accepted.
   TDAs. You may own a TDA generally if you are either an employer or employee
of a tax-exempt organization (as defined under Code Section 501(c)(3)) or a
public educational organization, and you may make contributions to a TDA so
long as the employee's rights to the annuity are nonforfeitable. Contributions
to a TDA, and any earnings, are not taxable until distribution. You may also
make contributions to a TDA under a salary reduction agreement, generally up to
a maximum of $15,000 in 2006. Individuals participating in a TDA who are age 50
or above by the end of the year will be permitted to contribute an additional
$5,000 in 2006. After 2006, the amount is indexed for inflation. Further, you
may roll over TDA amounts to another TDA or an IRA. You may also roll over TDA
amounts to a qualified retirement plan, a SEP and a 457 government plan. A
contract may only qualify as a
</R>


                                      80




AMERICAN SKANDIA ANNUITIES PROSPECTUS

TDA if distributions (other than "grandfathered" amounts held as of
December 31, 1988) may be made only on account of:
.   Your attainment of age 59 1/2;
.   Your severance of employment;
.   Your death;
.   Your total and permanent disability; or
.   Hardship (under limited circumstances, and only related to salary
    deferrals, not including earnings attributable to these amounts).
   In any event, you must begin receiving distributions from your TDA by
April 1/st /of the calendar year after the calendar year you turn age 70 1/2 or
retire, whichever is later.
   These distribution limits do not apply either to transfers or exchanges of
investments under the contract, or to any "direct transfer" of your interest in
the contract to another TDA or to a mutual fund "custodial account" described
under Code Section 403(b)(7).
   Employer contributions to TDAs are subject to the same general contribution,
nondiscrimination, and minimum participation rules applicable to "qualified"
retirement plans.

MINIMUM DISTRIBUTION REQUIREMENTS AND PAYMENT OPTION

<R>
If you hold the contract under an IRA (or other tax-favored plan), IRS minimum
distribution requirements must be satisfied. This means that generally payments
must start by April 1 of the year after the year you reach age 70/1//\\2 \\and
must be made for each year thereafter. For a Tax Sheltered Annuity or a 401(a)
plan for which the participant is not a greater than 5 percent owner of the
employer, this required beginning date can generally be deferred to retirement,
if later. Roth IRAs are not subject to these rules during the Owner's lifetime.
The amount of the payment must at least equal the minimum required under the
IRS rules. Several choices are available for calculating the minimum amount.
More information on the mechanics of this calculation is available on request.
Please contact us at a reasonable time before the IRS deadline so that a timely
distribution is made. Please note that there is a 50% tax penalty on the amount
of any minimum distribution not made in a timely manner.
</R>
   Effective in 2006, in accordance with recent changes in laws and
regulations, required minimum distributions will be calculated based on the sum
of the contract value and the actuarial value of any additional death benefits
and benefits from optional riders that you have purchased under the contract.
As a result, the required minimum distributions may be larger than if the
calculation were based on the contract value only, which may in turn result in
an earlier (but not before the required beginning date) distribution of amounts
under the Annuity and an increased amount of taxable income distributed to the
Annuity owner, and a reduction of death benefits and the benefits of any
optional riders.
   You can use the Minimum Distribution option to satisfy the IRS minimum
distribution requirements for an Annuity without either beginning annuity
payments or surrendering the Annuity. We will distribute to you this minimum
distribution amount, less any other partial withdrawals that you made during
the year.
   Although the IRS rules determine the required amount to be distributed from
your IRA each year, certain payment alternatives are still available to you. If
you own more than one IRA, you can choose to satisfy your minimum distribution
requirement for each of your IRAs by withdrawing that amount from any of your
IRAs. If you inherit more than one Roth IRA from the same owner, similar rules
apply.

PENALTY FOR EARLY WITHDRAWALS
You may owe a 10% tax penalty on the taxable part of distributions received
from an IRA, SEP, Roth IRA, TDA or qualified retirement plan before you attain
age 59 1/2. Amounts are not subject to this tax penalty if:
.   the amount is paid on or after you reach age 59 1/2 or die;
.   the amount received is attributable to your becoming disabled; or
.   generally the amount paid or received is in the form of substantially equal
    payments not less frequently than annually. (Please note that substantially
    equal payments must continue until the later of reaching age 59 1/2\\ \\or
    5 years. Modification of payments during that time period will result in
    retroactive application of the 10% tax penalty.)
   Other exceptions to this tax may apply. You should consult your tax advisor
for further details.

WITHHOLDING
Unless a distribution is an eligible rollover distribution that is "directly"
rolled over into another qualified plan, IRA (including the IRA variations
described above), SEP, 457 government plan or TDA, we will withhold federal
income tax at the rate of 20%. This 20% withholding does not apply to
distributions from IRAs and Roth IRAs. For all other distributions, unless you
elect otherwise, we will withhold federal income tax from the taxable portion
of such distribution at an appropriate percentage. The rate of


                                      81




AMERICAN SKANDIA ANNUITIES PROSPECTUS

Tax Considerations continued

withholding on annuity payments where no mandatory withholding is required is
determined on the basis of the withholding certificate that you file with us.
If you do not file a certificate, we will automatically withhold federal taxes
on the following basis:
.   For any annuity payments not subject to mandatory withholding, you will
    have taxes withheld by us as if you are a married individual, with 3
    exemptions; and
.   For all other distributions, we will withhold at a 10% rate. We will
    provide you with forms and instructions concerning the right to elect that
    no amount be withheld from payments in the ordinary course. However, you
    should know that, in any event, you are liable for payment of federal
    income taxes on the taxable portion of the distributions, and you should
    consult with your tax advisor to find out more information on your
    potential liability if you fail to pay such taxes. There may be additional
    state income tax withholding requirements.

ERISA DISCLOSURE/REQUIREMENTS
ERISA (the "Employee Retirement Income Security Act of 1974") and the Code
prevents a fiduciary and other "parties in interest" with respect to a plan
(and, for these purposes, an IRA would also constitute a "plan") from receiving
any benefit from any party dealing with the plan, as a result of the sale of
the contract. Administrative exemptions under ERISA generally permit the sale
of insurance/annuity products to plans, provided that certain information is
disclosed to the person purchasing the contract. This information has to do
primarily with the fees, charges, discounts and other costs related to the
contract, as well as any commissions paid to any agent selling the contract.
   Information about any applicable fees, charges, discounts, penalties or
adjustments may be found in the applicable sections of this Prospectus.
   Information about sales representatives and commissions may be found in the
sections of this Prospectus addressing distribution of the Annuities.
   Please consult your tax advisor if you have any additional questions.

SPOUSAL CONSENT RULES FOR RETIREMENT PLANS --QUALIFIED CONTRACTS
If you are married at the time your payments commence, you may be required by
federal law to choose an income option that provides survivor annuity income to
your spouse, unless your spouse waives that right. Similarly, if you are
married at the time of your death, federal law may require all or a portion of
the Death Benefit to be paid to your spouse, even if you designated someone
else as your beneficiary. A brief explanation of the applicable rules follows.
For more information, consult the terms of your retirement arrangement.
   Defined Benefit Plans and Money Purchase Pension Plans. If you are married
at the time your payments commence, federal law requires that benefits be paid
to you in the form of a "qualified joint and survivor annuity" (QJSA), unless
you and your spouse waive that right, in writing. Generally, this means that
you will receive a reduced payment during your life and, upon your death, your
spouse will receive at least one-half of what you were receiving for life. You
may elect to receive another income option if your spouse consents to the
election and waives his or her right to receive the QJSA. If your spouse
consents to the alternative form of payment, your spouse may not receive any
benefits from the plan upon your death. Federal law also requires that the plan
pay a Death Benefit to your spouse if you are married and die before you begin
receiving your benefit. This benefit must be available in the form of an
annuity for your spouse's lifetime and is called a "qualified pre-retirement
survivor annuity" (QPSA). If the plan pays Death Benefits to other
beneficiaries, you may elect to have a beneficiary other than your spouse
receive the Death Benefit, but only if your spouse consents to the election and
waives his or her right to receive the QPSA. If your spouse consents to the
alternate beneficiary, your spouse will receive no benefits from the plan upon
your death. Any QPSA waiver prior to your attaining age 35 will become null and
void on the first day of the calendar year in which you attain age 35, if still
employed.
   Defined Contribution Plans (including 401(k) Plans and ERISA 403(b)
Annuities). Spousal consent to a distribution is generally not required. Upon
your death, your spouse will receive the entire Death Benefit, even if you
designated someone else as your beneficiary, unless your spouse consents in
writing to waive this right. Also, if you are married and elect an annuity as a
periodic income option, federal law requires that you receive a QJSA (as
described above), unless you and your spouse consent to waive this right.
   IRAs, non-ERISA 403(b) Annuities, and 457 Plans. Spousal consent to a
distribution usually is not required. Upon your death, any Death Benefit will
be paid to your designated beneficiary.

ADDITIONAL INFORMATION
<R>
For additional information about federal tax law requirements applicable to
IRAs and Roth IRAs, see the IRA Disclosure Statement or Roth IRA Disclosure
Statement, as applicable.
</R>


                                      82




AMERICAN SKANDIA ANNUITIES PROSPECTUS

General Information


HOW WILL I RECEIVE STATEMENTS AND REPORTS?
<R>
We send any statements and reports required by applicable law or regulation to
you at your last known address of record. You should therefore give us prompt
notice of any address change. We reserve the right, to the extent permitted by
law and subject to your prior consent, to provide any prospectus, prospectus
supplements, confirmations, statements and reports required by applicable law
or regulation to you through our Internet Website at
www.americanskandia.prudential.com or any other electronic means, including
diskettes or CD ROMs. We send a confirmation statement to you each time a
transaction is made affecting Account Value, such as making additional Purchase
Payments, transfers, exchanges or withdrawals. We also send quarterly
statements detailing the activity affecting your Annuity during the calendar
quarter. We may confirm regularly scheduled transactions, such as the Annual
Maintenance Fee, Systematic Withdrawals (including 72(t) payments and required
minimum distributions), electronic funds transfers, Dollar Cost Averaging, and
static rebalancing, in quarterly statements instead of confirming them
immediately. You should review the information in these statements carefully.
You may request additional reports. We reserve the right to charge up to $50
for each such additional report. We may also send an annual report and a
semi-annual report containing applicable financial statements for the Separate
Account and the Portfolios, as of December 31 and June 30, respectively, to
Owners or, with your prior consent, make such documents available
electronically through our Internet Website or other electronic means.
</R>

WHO IS AMERICAN SKANDIA?
American Skandia Life Assurance Corporation, a Prudential Financial Company,
("American Skandia") is a stock life insurance company domiciled in Connecticut
with licenses in all 50 states, the District of Columbia and Puerto Rico.
American Skandia is a wholly-owned subsidiary of American Skandia, Inc.
("ASI"), whose ultimate parent is Prudential Financial, Inc. American Skandia
markets its products to broker-dealers and financial planners through an
internal field marketing staff. In addition, American Skandia markets through
and in conjunction with financial institutions such as banks that are permitted
directly, or through affiliates, to sell annuities.
<R>
   American Skandia offers a wide array of annuities, including (1) deferred
and immediate variable annuities that are registered with the SEC, including
fixed interest rate annuities that are offered as a companion to certain of our
variable annuities and are registered because of their market value adjustment
feature and (2) fixed annuities that are not registered with the SEC. In
addition, American Skandia has in force a relatively small block of variable
life insurance policies, but it no longer actively sells such policies.
   Effective May 1, 2003, Skandia U.S. Inc., the sole shareholder of ASI, which
is the parent of American Skandia, was purchased by Prudential Financial, Inc.
Prudential Financial, Inc. is a New Jersey insurance holding company whose
subsidiary companies serve individual and institutional customers worldwide and
include The Prudential Insurance Company of America, one of the largest life
insurance companies in the U.S. These companies offer a variety of products and
services, including life insurance, mutual funds, annuities, pension and
retirement related services and administration, asset management, securities
brokerage, banking and trust services, real estate brokerage franchises, and
relocation services.
</R>
   No company other than American Skandia has any legal responsibility to pay
amounts that it owes under its annuity and variable life insurance contracts.
However, Prudential Financial exercises significant influence over the
operations and capital structure of American Skandia.

WHAT ARE SEPARATE ACCOUNTS?
The separate accounts are where American Skandia sets aside and invests the
assets of some of our annuities. In the accumulation period, assets supporting
Account Values of the Annuities are held in a separate account established
under the laws of the State of Connecticut. We are the legal owner of assets in
the separate accounts. In the payout period, assets supporting fixed annuity
payments and any adjustable annuity payments we make available are held in our
general account. Assets supporting variable annuity payment options may be
invested in our separate accounts. Income, gains and losses from assets
allocated to these separate accounts are credited to or charged against each
such separate account without regard to other income, gains or losses of
American Skandia or of any other of our separate accounts. These assets may
only be charged with liabilities which arise from the Annuities issued by
American Skandia. The amount of our obligation in relation to allocations to
the Sub-accounts is based on the investment performance of such Sub-accounts.
However, the obligations themselves are our general corporate obligations.

SEPARATE ACCOUNT B
During the accumulation period, the assets supporting obligations based on
allocations to the Sub-accounts are held in


                                      83




AMERICAN SKANDIA ANNUITIES PROSPECTUS

General Information continued

Sub-accounts of American Skandia Life Assurance Corporation Variable Account B,
also referred to as "Separate Account B". Separate Account B was established by
us pursuant to Connecticut law on November 25, 1987. Separate Account B also
holds assets of other annuities issued by us with values and benefits that vary
according to the investment performance of Separate Account B.
   Separate Account B consists of multiple Sub-accounts. Each Sub-account
invests only in a single mutual fund or mutual fund portfolio. The name of each
Sub-account generally corresponds to the name of the underlying Portfolio. Each
Sub-account in Separate Account B may have several different Unit Prices to
reflect the Insurance Charge, Distribution Charge (when applicable) and the
charges for any optional benefits that are offered under the Annuities issued
by us through Separate Account B. Separate Account B is registered with the SEC
under the Investment Company Act of 1940 ("Investment Company Act") as a unit
investment trust, which is a type of investment company. The SEC does not
supervise investment policies, management or practices of Separate Account B.
   Prior to November 18, 2002, Separate Account B was organized as a single
separate account with six different Sub-account classes, each of which was
registered as a distinct unit investment trust under the Investment Company
Act. Effective November 18, 2002, each Sub-account class of Separate Account B
was consolidated into the unit investment trust formerly named American Skandia
Life Assurance Corporation Variable Account B (Class 1 Sub-accounts), which was
subsequently renamed American Skandia Life Assurance Corporation Variable
Account B. Each Sub-account of Separate Account B has multiple Unit Prices to
reflect the daily charge deducted for each combination of the applicable
Insurance Charge, Distribution Charge (when applicable) and the charge for each
optional benefit offered under Annuity contracts funded through Separate
Account B. The consolidation of Separate Account B had no impact on Annuity
Owners.
   We reserve the right to make changes to the Sub-accounts available under the
Annuities as we determine appropriate. We may offer new Sub-accounts, eliminate
Sub-accounts, or combine Sub-accounts at our sole discretion. We may also close
Sub-accounts to additional Purchase Payments on existing Annuity contracts or
close Sub-accounts for Annuities purchased on or after specified dates. We may
also substitute an underlying mutual fund or portfolio of an underlying mutual
fund for another underlying mutual fund or portfolio of an underlying mutual
fund, subject to our receipt of any exemptive relief that we are required to
obtain under the Investment Company Act. We will notify Owners of changes we
make to the Sub-accounts available under their Annuity.
   Values and benefits based on allocations to the Sub-accounts will vary with
the investment performance of the underlying mutual funds or fund portfolios,
as applicable. We do not guarantee the investment results of any Sub-account.
Your Account Value allocated to the Sub-accounts may increase or decrease. You
bear the entire investment risk. There is no assurance that the Account Value
of your Annuity will equal or be greater than the total of the Purchase
Payments you make to us.

SEPARATE ACCOUNT D
During the accumulation period, assets supporting our obligations based on
Fixed Allocations are held in American Skandia Life Assurance Corporation
Separate Account D, also referred to as "Separate Account D". Such obligations
are based on the fixed interest rates we credit to Fixed Allocations and the
terms of the Annuities. These obligations do not depend on the investment
performance of the assets in Separate Account D. Separate Account D was
established by us pursuant to Connecticut law.
   There are no units in Separate Account D. The Fixed Allocations are
guaranteed by our general account. An Annuity Owner who allocates a portion of
their Account Value to Separate Account D does not participate in the
investment gain or loss on assets maintained in Separate Account D. Such gain
or loss accrues solely to us. We retain the risk that the value of the assets
in Separate Account D may drop below the reserves and other liabilities we must
maintain. Should the value of the assets in Separate Account D drop below the
reserve and other liabilities we must maintain in relation to the annuities
supported by such assets, we will transfer assets from our general account to
Separate Account D to make up the difference. We have the right to transfer to
our general account any assets of Separate Account D in excess of such reserves
and other liabilities. We maintain assets in Separate Account D supporting a
number of annuities we offer.
<R>
   We may employ investment managers to manage the assets maintained in
Separate Account D. Each manager we employ is responsible for investment
management of a different portion of Separate Account D. From time to time
additional investment managers may be employed or investment managers may cease
being employed. We are under no obligation to employ or
</R>


                                      84




AMERICAN SKANDIA ANNUITIES PROSPECTUS

continue to employ any investment manager(s) and have sole discretion over the
investment managers we retain.
   We are not obligated to invest according to specific guidelines or
strategies except as may be required by Connecticut and other state insurance
laws.

WHAT IS THE LEGAL STRUCTURE OF THE UNDERLYING FUNDS?
Each underlying mutual fund is registered as an open-end management investment
company under the Investment Company Act. Shares of the underlying mutual fund
portfolios are sold to separate accounts of life insurance companies offering
variable annuity and variable life insurance products. The shares may also be
sold directly to qualified pension and retirement plans.

VOTING RIGHTS
<R>
We are the legal owner of the shares of the underlying mutual funds in which
the Sub-accounts invest. However, under SEC rules, you have voting rights in
relation to Account Value maintained in the Sub-accounts. If an underlying
mutual fund portfolio requests a vote of shareholders, we will vote our shares
based on instructions received from Owners with Account Value allocated to that
Sub-account. Owners have the right to vote an amount equal to the number of
shares attributable to their contracts. If we do not receive voting
instructions in relation to certain shares, we will vote those shares in the
same manner and proportion as the shares for which we have received
instructions. We will furnish those Owners who have Account Value allocated to
a Sub-account whose underlying mutual fund portfolio has requested a "proxy"
vote with proxy materials and the necessary forms to provide us with their
voting instructions. This voting procedure is sometimes referred to as "mirror
voting" because, as indicated in the immediately preceding sentence, we mirror
the votes that are actually cast, rather than decide on our own how to vote. In
addition, because all the shares of a given mutual fund held within our
separate account are legally owned by us, we intend to vote all of such shares
when that underlying fund seeks a vote of its shareholders. As such, all such
shares will be counted towards whether there is a quorum at the underlying
fund's shareholder meeting and towards the ultimate outcome of the vote. Thus,
under "mirror voting," it is possible that the votes of a small percentage of
contractholders who actually vote will determine the ultimate outcome.
Generally, you will be asked to provide instructions for us to vote on matters
such as changes in a fundamental investment strategy, adoption of a new
investment advisory agreement, or matters relating to the structure of the
underlying mutual fund that require a vote of shareholders.
</R>
   American Skandia Trust (the "Trust") has obtained an exemption from the
Securities and Exchange Commission that permits its co-investment advisers,
American Skandia Investment Services, Incorporated ("ASISI") and Prudential
Investments LLC, subject to approval by the Board of Trustees of the Trust, to
change sub-advisors for a Portfolio and to enter into new sub-advisory
agreements, without obtaining shareholder approval of the changes. This
exemption (which is similar to exemptions granted to other investment companies
that are organized in a similar manner as the Trust) is intended to facilitate
the efficient supervision and management of the sub-advisors by ASISI,
Prudential Investments LLC and the Trustees. The Trust is required, under the
terms of the exemption, to provide certain information to shareholders
following these types of changes. We may add new Sub-accounts that invest in a
series of underlying funds other than the Trust that is managed by an
affiliate. Such series of funds may have a similar order from the SEC. You also
should review the prospectuses for the other underlying funds in which various
Sub-accounts invest as to whether they have obtained similar orders from the
SEC.

MATERIAL CONFLICTS
It is possible that differences may occur between companies that offer shares
of an underlying mutual fund portfolio to their respective separate accounts
issuing variable annuities and/or variable life insurance products. Differences
may also occur surrounding the offering of an underlying mutual fund portfolio
to variable life insurance policies and variable annuity contracts that we
offer. Under certain circumstances, these differences could be considered
"material conflicts," in which case we would take necessary action to protect
persons with voting rights under our variable annuity contracts and variable
life insurance policies against persons with voting rights under other
insurance companies' variable insurance products. If a "material conflict" were
to arise between owners of variable annuity contracts and variable life
insurance policies issued by us we would take necessary action to treat such
persons equitably in resolving the conflict. "Material conflicts" could arise
due to differences in voting instructions between owners of variable life
insurance and variable annuity contracts of the same or different companies. We
monitor any potential conflicts that may exist.


                                      85




AMERICAN SKANDIA ANNUITIES PROSPECTUS

General Information continued


SERVICE FEES PAYABLE TO AMERICAN SKANDIA
American Skandia or our affiliates have entered into agreements with the
investment adviser or distributor of the underlying Portfolios. Under the terms
of these agreements, American Skandia may provide administrative and support
services to the Portfolios for which it receives a fee of up to 0.75%
(currently) of the average assets allocated to the Portfolios under each
Annuity from the investment adviser, distributor and/or the fund. These
agreements may be different for each underlying mutual fund whose portfolios
are offered as Sub-accounts.
   In addition, the investment adviser, sub-advisor or distributor of the
underlying Portfolios may also compensate us by providing reimbursement or
paying directly for, among other things, marketing and/or administrative
services and/or other services they provide in connection with each Annuity.
These services may include, but are not limited to: co-sponsoring various
meetings and seminars attended by broker-dealer firms' registered
representatives and creating marketing material discussing each Annuity and the
available options.

WHO DISTRIBUTES ANNUITIES OFFERED BY AMERICAN SKANDIA?
<R>
American Skandia Marketing, Incorporated ("ASM"), a wholly-owned subsidiary of
American Skandia, Inc., is the distributor and principal underwriter of the
securities offered through this prospectus. ASM acts as the distributor of a
number of annuity and life insurance products we offer and co-distributor of
American Skandia Trust.
</R>
   ASM's principal business address is One Corporate Drive, Shelton,
Connecticut 06484. ASM is registered as broker-dealer under the Securities
Exchange Act of 1934 ("Exchange Act") and is a member of the National
Association of Securities Dealers, Inc. ("NASD").
   Each Annuity is offered on a continuous basis. ASM enters into distribution
agreements with broker-dealers who are registered under the Exchange Act and
with entities that may offer the Annuities but are exempt from registration
("firms"). Applications for each Annuity are solicited by registered
representatives of those firms. Such representatives will also be our appointed
insurance agents under state insurance law. In addition, ASM may offer the
Annuities directly to potential purchasers.
   Commissions are paid to firms on sales of the Annuities according to one or
more schedules. The individual representative will receive a portion of the
compensation, depending on the practice of his or her firm. Commissions are
generally based on a percentage of Purchase Payments made, up to a maximum of
7.0% for Optimum, 6.0% for Optimum Plus and 5.5% for Optimum Four. Alternative
compensation schedules are available that provide a lower initial commission
plus ongoing annual compensation based on all or a portion of the Account
Value. We may also provide compensation to the distributing firm for providing
ongoing service to you in relation to your Annuity. Commissions and other
compensation paid in relation to your Annuity do not result in any additional
charge to you or to the Separate Account.
   In addition, in an effort to promote the sale of our products (which may
include the placement of American Skandia and/or the Annuities on a preferred
or recommended company or product list and/or access to the firm's registered
representatives), we or ASM may enter into compensation arrangements with
certain broker-dealer firms (including Linsco/Private Ledger, Corp.) with
respect to certain or all registered representatives of such firms under which
such firms may receive separate compensation or reimbursement for, among other
things, training of sales personnel and/or marketing and/or administrative
services and/or other services they provide. These services may include, but
are not limited to: educating customers of the firm on the Annuitys' features;
conducting due diligence and analysis, providing office access, operations and
systems support; holding seminars intended to educate the firm's registered
representatives and make them more knowledgeable about the Annuities; providing
a dedicated marketing coordinator; providing priority sales desk support; and
providing expedited marketing compliance approval. To the extent permitted by
NASD rules and other applicable laws and regulations, ASM may pay or allow
other promotional incentives or payments in the form of cash or non-cash
compensation. These arrangements may not be offered to all firms and the terms
of such arrangements may differ between firms. A list of the firms to whom
American Skandia pays an amount of greater than $10,000 under these
arrangements is provided in the Statement of Additional Information, which is
available upon request. You should note that firms and individual registered
representatives and branch managers within some firms participating in one of
these compensation arrangements might receive greater compensation for selling
the Annuities than for selling a different annuity that is not eligible for
these compensation arrangements. While compensation is generally taken into
account as an expense in considering the charges applicable to an annuity
product, any such compensation will be paid by us or ASM and will not result in
any additional charge to you. Overall compensation paid to the distributing
firm does not


                                      86




AMERICAN SKANDIA ANNUITIES PROSPECTUS

exceed, based on actuarial assumptions, 8.5% of the total Purchase Payments
made. Your registered representative can provide you with more information
about the compensation arrangements that apply upon the sale of the Annuity.
   On July 1, 2003, Prudential Financial combined its retail securities
brokerage and clearing operations with those of Wachovia Corporation
("Wachovia") and formed Wachovia Securities Financial Holdings, LLC ("Wachovia
Securities"), a joint venture headquartered in Richmond, Virginia. Prudential
Financial has a 38% ownership interest in the joint venture, while Wachovia
owns the remaining 62%.
   Wachovia and Wachovia Securities are key distribution partners for certain
products of Prudential Financial affiliates, including mutual funds and
individual annuities that are distributed through their financial advisors,
bank channel and independent channel. In addition, Prudential Financial is a
service provider to the managed account platform and certain wrap-fee programs
offered by Wachovia Securities.

INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
<R>
American Skandia publishes annual and quarterly reports that are filed with the
SEC. These reports contain financial information about American Skandia that is
annually audited by an independent registered public accounting firm. American
Skandia's annual report for the year ended December 31, 2005, together with
subsequent periodic reports that American Skandia files with the SEC, are
incorporated by reference into this prospectus. You can obtain copies, at no
cost, of any and all of this information, including the American Skandia annual
report that is not ordinarily mailed to contract owners, the more current
reports and any subsequently filed documents at no cost by contacting us at
American Skandia -- Variable Annuities; P.O. Box 7960, Philadelphia, PA 19176
(Telephone: 203-926-1888). The SEC file number for American Skandia is
33-44202. You may read and copy any filings made by American Skandia with the
SEC at the SEC's Public Reference Room at 100 F Street, N.E. Washington, D.C.
20549. You can obtain information on the operation of the Public Reference Room
by calling (202) 551-8090. The SEC maintains an Internet site that contains
reports, proxy and information statements, and other information regarding
issuers that file electronically with the SEC at http://www.sec.gov.
</R>

FINANCIAL STATEMENTS
The financial statements of the separate account and American Skandia Life
Assurance Corporation are included in the Statement of Additional Information.

HOW TO CONTACT US
You can contact us by:
.   calling our Customer Service Team at 1-800-752-6342 during our normal
    business hours, Monday through Friday, or Skandia's telephone automated
    response system at 1-800-766-4530.
.   writing to us via regular mail at American Skandia -- Variable Annuities,
    P.O. Box 7960, Philadelphia, PA 19176 OR for express mail American Skandia
    -- Variable Annuities, 2101 Welsh Road, Dresher, PA 19025. NOTE: Failure to
    send mail to the proper address may result in a delay in our receiving and
    processing your request.
.   sending an email to customerservice@prudential.com or visiting our Internet
    Website at www.americanskandia.prudential.com.
.   accessing information about your Annuity through our Internet Website at
    www.americanskandia.prudential.com.

<R>
   You can obtain account information by calling our automated response system
and at www.americanskandia.prudential.com, our Internet Website. Our Customer
Service representatives are also available during business hours to provide you
with information about your account. You can request certain transactions
through our telephone voice response system, our Internet Website or through a
customer service representative. You can provide authorization for a third
party, including your attorney-in-fact acting pursuant to a power of attorney
or your Financial Professional, to access your account information and perform
certain transactions on your account. You will need to complete a form provided
by us which identifies those transactions that you wish to authorize via
telephonic and electronic means and whether you wish to authorize a third party
to perform any such transactions. Please note that unless you tell us
otherwise, we deem that all transactions that are directed by your Financial
Professional with respect to your Annuity have been authorized by you. We
require that you or your representative provide proper identification before
performing transactions over the telephone or through our Internet Website.
This may include a Personal Identification Number (PIN) that will be provided
to you upon issue of your
</R>


                                      87




AMERICAN SKANDIA ANNUITIES PROSPECTUS

General Information continued

Annuity or you may establish or change your PIN by calling our automated
response system and at www.americanskandia.prudential.com, our Internet
Website. Any third party that you authorize to perform financial transactions
on your account will be assigned a PIN for your account.
   Transactions requested via telephone are recorded. To the extent permitted
by law, we will not be responsible for any claims, loss, liability or expense
in connection with a transaction requested by telephone or other electronic
means if we acted on such transaction instructions after following reasonable
procedures to identify those persons authorized to perform transactions on your
Annuity using verification methods which may include a request for your Social
Security number, PIN or other form of electronic identification. We may be
liable for losses due to unauthorized or fraudulent instructions if we did not
follow such procedures.
   American Skandia does not guarantee access to telephonic, facsimile,
Internet or any other electronic information or that we will be able to accept
transaction instructions via such means at all times. Regular and/or express
mail will be the only means by which we will accept transaction instructions
when telephonic, facsimile, Internet or any other electronic means are
unavailable or delayed. American Skandia reserves the right to limit, restrict
or terminate telephonic, facsimile, Internet or any other electronic
transaction privileges at any time.

INDEMNIFICATION
Insofar as indemnification for liabilities arising under the Securities Act of
1933 (the "Securities Act") may be permitted to directors, officers or persons
controlling the registrant pursuant to the foregoing provisions, the registrant
has been informed that in the opinion of the SEC such indemnification is
against public policy as expressed in the Securities Act and is therefore
unenforceable.

LEGAL PROCEEDINGS
<R>
American Skandia is subject to legal and regulatory actions in the ordinary
course of its business, including class action lawsuits. American Skandia's
pending legal and regulatory actions include proceedings specific to us and
proceedings generally applicable to business practices in the industry in which
we operate. We are subject to class action lawsuits and other litigation
alleging, among other things, that we made improper or inadequate disclosures
in connection with the sale of annuity products or charged excessive or
impermissible fees on these products, recommended unsuitable products to
customers, mishandled customer accounts or breached fiduciary duties to
customers. We are also subject to litigation arising out of our general
business activities, such as our investments, contracts, leases and labor and
employment relationships, including claims of discrimination and harassment. In
some of our pending legal and regulatory actions, parties are seeking large
and/or indeterminate amounts, including punitive or exemplary damages. The
following is a summary of certain pending proceedings.
   American Skandia is in discussions with various state insurance departments
concerning a remediation program to correct errors in the administration of
approximately 11,000 annuity contracts issued by us. The owners of these
contracts did not receive notification that the contracts were approaching or
past their designated annuitization date or default annuitization date (both
dates referred to as the "contractual annuity date") and the contracts were not
annuitized at their contractual annuity dates. Some of these contracts also
were affected by data integrity errors resulting in incorrect contractual
annuity dates. The lack of notice and the data integrity errors, as reflected
on the annuities administrative system, all occurred before the acquisition of
American Skandia by Prudential Financial, Inc. Certain state insurance
departments have requested modifications to the remediation program that
American Skandia anticipates will impact the overall cost of the program. The
remediation and administrative costs of the remediation program would be
subject to the indemnification provisions of the agreement pursuant to which
Prudential Financial, Inc. acquired American Skandia (the "Acquisition
Agreement").
   With the approval of Skandia Insurance Company Ltd. (publ) ("Skandia"), an
offer was made to the authorities investigating American Skandia and certain
affiliated companies, the SEC and New York Attorney General, to settle the
matters relating to market timing in variable annuities by paying restitution
and a civil penalty of $95 million in the aggregate. While not assured,
American Skandia believes these discussions are likely to lead to settlements
with these authorities. Any regulatory settlement involving American Skandia or
any affiliates of American Skandia that Prudential Financial, Inc. acquired
from Skandia would be subject to the indemnification provisions of the
Acquisition Agreement. If achieved, settlement of the matters could involve
continuing monitoring, changes to and/or supervision of business practices,
findings that may adversely affect existing or cause additional litigation,
adverse publicity and other adverse impacts to American Skandia's business.
</R>


                                      88




AMERICAN SKANDIA ANNUITIES PROSPECTUS

<R>
   American Skandia's litigation is subject to many uncertainties, and given
its complexity and scope, its outcome cannot be predicted. It is possible that
the results of operations or the cash flow of American Skandia in a particular
quarterly or annual period could be materially affected by an ultimate
unfavorable resolution of pending litigation and regulatory matters depending,
in part, upon the results of operations or cash flow for such period.
Management believes, however, that the ultimate outcome of all pending
litigation and regulatory matters,
after consideration of applicable reserves, should not have a material adverse
effect on American Skandia's financial position.
   It should be noted that the judgments, settlements and expenses associated
with many of these lawsuits, administrative and regulatory matters, and
contingencies, including the claims described above, may, in whole or in part,
after satisfaction of certain retention requirements, fall within Skandia's
indemnification obligations to Prudential Financial, Inc. and its subsidiaries
under the terms of the Acquisition Agreement. Those obligations of Skandia
provide for indemnification of certain judgments, settlements, and costs and
expenses associated with lawsuits and other claims against American Skandia
("matters"), and apply only to matters, or groups of related matters, for which
the costs and expenses exceed $25,000 individually. Those obligations only
apply to such costs and expenses that exceed $10 million in the aggregate,
subject to reduction for insurance proceeds, certain accruals and any realized
tax benefit applicable to such amounts, and those obligations do not apply to
the extent that such aggregate exceeds $1 billion.
</R>

CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION
The following are the contents of the Statement of Additional Information:

General Information about American Skandia
.   American Skandia Life Assurance Corporation
.   American Skandia Life Assurance Corporation Variable Account B
.   American Skandia Life Assurance Corporation Separate Account D

Principal Underwriter/Distributor -- American Skandia Marketing, Incorporated

Payments Made to Promote Sale of our Products

How the Unit Price is Determined

Additional Information on Fixed Allocations
.   How We Calculate the Market Value Adjustment

General Information
.   Voting Rights
.   Modification
.   Deferral of Transactions
.   Misstatement of Age or Sex
.   Ending the Offer

Annuitization

Experts

Legal Experts

Financial Statements


                                      89




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B

Separate Account B consists of multiple Sub-accounts that are available as
investment options for the American Skandia Annuities. Each Sub-account invests
only in a single mutual fund or mutual fund portfolio. All or some of these
Sub-accounts are available as investment options for other variable annuities
we offer pursuant to different prospectuses.

<R>
Unit Prices And Numbers Of Units: The following tables show for each Annuity:
(a) the historical Unit Price, corresponding to the Annuity features bearing
the highest and lowest combinations of asset-based charges, as of the dates
shown, for Units in each of the Sub-accounts of Separate Account B that are
being offered pursuant to this Prospectus*; and (b) the number of Units
outstanding for each such Sub-account as of the dates shown. In the tables,
"BOP" refers to Beginning of Period and "EOP" refers to End of Period. The
period for each year begins on January 1 and ends on December 31. Since
November 18, 2002, we have been determining, on a daily basis, multiple Unit
Prices for each Sub-account of Separate Account B. We compute multiple Unit
Prices because several of our variable annuities invest in the same
Sub-accounts, and these annuities deduct varying charges that correspond to
each combination of the applicable Insurance Charge, Distribution Charge (when
applicable) and the charges for each optional benefit. Where an asset-based
charge corresponding to a particular Sub-account within a new annuity product
is identical to that in the same Sub-account within an existing annuity, the
Unit Price for the new annuity will be identical to that of the existing
annuity. In such cases, we will for reference purposes depict, in the condensed
financial information for the new annuity, Unit Prices of the existing annuity.
The year in which operations commenced in each such Sub-account is noted in
parentheses. To the extent a Sub-account commenced operations during a
particular calendar year, the Unit Price as of the end of the period reflects
only the partial year results from the commencement of operations until
December 31/st /of the applicable year. When a Unit Price was first calculated
for a particular Sub-account, we set the price of that Unit at $10.00 per Unit.
Thereafter, Unit Prices vary based on market performance. Unit Prices and Units
are provided for Sub-accounts that commenced operations prior to January 1,
2006.
</R>

* The remaining unit values appear in the Statement of Additional Information,
which you may obtain free of charge by sending in the request form at the end
of the Prospectus or contacting us at 1-800-752-6342.


                                      A-1




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

OPTIMUM - Prospectus

<R>
SUB-ACCOUNT                           2005      2004      2003     2002    2001    2000
----------------------------------------------------------------------------------------
AST JP Morgan International Equity
   With No Optional Benefits
   BOP Unit Value                       $8.24     $7.13     $5.53    6.86    8.99
   EOP Unit Value                        9.04      8.24      7.13    5.53    6.86   8.99
   Number of Units                  1,051,557   553,542   362,254 153,652 136,976 33,897
   With LT5, HDV, and EBP
   BOP Unit Value                          --        --        --      --      --
   EOP Unit Value                      $10.57        --        --      --      --     --
   Number of Units                         --        --        --      --      --     --
----------------------------------------------------------------------------------------
AST William Blair International Growth (1997)
   With No Optional Benefits
   BOP Unit Value                      $16.42    $14.32    $10.35    14.1   18.68
   EOP Unit Value                       18.90     16.42     14.32   10.35    14.1  18.68
   Number of Units                  2,113,594 1,953,908 1,166,396   7,064   5,277  6,782
   With LT5, HDV, and EBP
   BOP Unit Value                          --        --        --      --      --
   EOP Unit Value                      $11.20        --        --      --      --     --
   Number of Units                         --        --        --      --      --     --
----------------------------------------------------------------------------------------
AST LSV International Value
   With No Optional Benefits
   BOP Unit Value                       $7.01     $5.86     $4.43    5.41    8.08
   EOP Unit Value                        7.87      7.01      5.86    4.43    5.41   8.08
   Number of Units                    402,497   233,045    91,736  32,967  29,954 20,311
   With LT5, HDV, and EBP
   BOP Unit Value                          --        --        --      --      --
   EOP Unit Value                      $10.62        --        --      --      --     --
   Number of Units                         --        --        --      --      --     --
----------------------------------------------------------------------------------------
AST Small-Cap Growth
   With No Optional Benefits
   BOP Unit Value                      $15.97    $17.38    $12.12    18.7   20.25
   EOP Unit Value                       16.00     15.97     17.38   12.12    18.7  20.25
   Number of Units                    126,824   107,136   145,364   6,331   2,439    978
   With LT5, HDV, and EBP
   BOP Unit Value                          --        --        --      --      --
   EOP Unit Value                      $10.35        --        --      --      --     --
   Number of Units                         --        --        --      --      --     --
----------------------------------------------------------------------------------------
AST DeAM Small-Cap Growth (1999)
   With No Optional Benefits
   BOP Unit Value                       $7.41     $6.86     $4.71    6.48    9.17
   EOP Unit Value                        7.35      7.41      6.86    4.71    6.48   9.17
   Number of Units                    267,925   293,384   258,089  44,611  41,602 35,743
   With LT5, HDV, and EBP
   BOP Unit Value                          --        --        --      --      --
   EOP Unit Value                      $10.23        --        --      --      --     --
   Number of Units                         --        --        --      --      --     --
----------------------------------------------------------------------------------------
</R>


                                      A-2



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


OPTIMUM - Prospectus (continued)

<R>
SUB-ACCOUNT                               2005      2004      2003     2002    2001    2000
--------------------------------------------------------------------------------------------
AST Federated Aggressive Growth (2000)
   With No Optional Benefits
   BOP Unit Value                          $10.12     $8.33     $4.98    7.12    9.08
   EOP Unit Value                           10.94     10.12      8.33    4.98    7.12   9.08
   Number of Units                      1,386,930 1,169,995   859,909  25,040  10,912    243
   With LT5, HDV, and EBP
   BOP Unit Value                              --        --        --      --      --
   EOP Unit Value                          $10.87        --        --      --      --     --
   Number of Units                             --        --        --      --      --     --
--------------------------------------------------------------------------------------------
AST Small-Cap Value (1997)
   With No Optional Benefits
   BOP Unit Value                          $16.64    $14.47    $10.79   12.06   11.41
   EOP Unit Value                           17.52     16.64     14.47   10.79   12.06  11.41
   Number of Units                      1,484,712 1,293,786   962,965  66,744  33,608 15,339
   With LT5, HDV, and EBP
   BOP Unit Value                              --        --        --      --      --
   EOP Unit Value                          $10.56        --        --      --      --     --
   Number of Units                             --        --        --      --      --     --
--------------------------------------------------------------------------------------------
AST Goldman Sachs Mid-Cap Growth (2000)
   With No Optional Benefits
   BOP Unit Value                           $4.44     $3.87     $2.98    4.15    7.03
   EOP Unit Value                            4.60      4.44      3.87    2.98    4.15   7.03
   Number of Units                      2,666,933 2,232,502 1,535,565  28,812  17,882  2,473
   With LT5, HDV, and EBP
   BOP Unit Value                              --        --        --      --      --
   EOP Unit Value                          $10.49        --        --      --      --     --
   Number of Units                             --        --        --      --      --     --
--------------------------------------------------------------------------------------------
AST Neuberger Berman Mid-Cap Value (1993)
   With No Optional Benefits
   BOP Unit Value                          $16.76    $13.82    $10.26   11.62   12.13
   EOP Unit Value                           18.55     16.76     13.82   10.26   11.62  12.13
   Number of Units                      1,303,740 1,116,503   781,348  69,657  56,219 16,574
   With LT5, HDV, and EBP
   BOP Unit Value                              --        --        --      --      --
   EOP Unit Value                          $10.80        --        --      --      --     --
   Number of Units                             --        --        --      --      --     --
--------------------------------------------------------------------------------------------
AST T. Rowe Price Large-Cap Growth
   With No Optional Benefits
   BOP Unit Value                           $6.19     $5.93     $4.86    7.12    8.46
   EOP Unit Value                            7.12      6.19      5.93    4.86    7.12   8.46
   Number of Units                        512,012   326,194   263,698 106,056 106,762 97,356
   With LT5, HDV, and EBP
   BOP Unit Value                              --        --        --      --      --
   EOP Unit Value                          $12.02        --        --      --      --     --
   Number of Units                             --        --        --      --      --     --
--------------------------------------------------------------------------------------------
</R>


                                      A-3




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

<R>
Appendix A -- Condensed Financial Information About Separate Account B
 continued

OPTIMUM - Prospectus (continued)
</R>

<R>
SUB-ACCOUNT                                  2005      2004      2003     2002    2001    2000
------------------------------------------------------------------------------------------------
AST MFS Growth (1999)
   With No Optional Benefits
   BOP Unit Value                              $7.04     $6.44     $5.31    7.48    9.68
   EOP Unit Value                               7.39      7.04      6.44    5.31    7.48    9.68
   Number of Units                         1,025,239   791,823   893,170 112,701  47,656   3,089
   With LT5, HDV, and EBP
   BOP Unit Value                                 --        --        --      --      --
   EOP Unit Value                             $10.67        --        --      --      --      --
   Number of Units                                --        --        --      --      --      --
------------------------------------------------------------------------------------------------
AST Marsico Capital Growth (1997)
   With No Optional Benefits
   BOP Unit Value                              $9.67     $8.46     $6.50     7.8   10.09
   EOP Unit Value                              10.20      9.67      8.46     6.5     7.8   10.09
   Number of Units                         7,048,021 5,717,404 4,075,719 228,033 182,904 114,992
   With LT5, HDV, and EBP
   BOP Unit Value                                 --        --        --      --      --
   EOP Unit Value                             $10.82        --        --      --      --      --
   Number of Units                                --        --        --      --      --      --
------------------------------------------------------------------------------------------------
AST AllianceBernstein Core Value (2001)
   With No Optional Benefits
   BOP Unit Value                             $12.28    $10.91     $8.61   10.05      --
   EOP Unit Value                              12.79     12.28     10.91    8.61   10.05      --
   Number of Units                           635,232   603,508   453,569  82,054  18,453      --
   With LT5, HDV, and EBP
   BOP Unit Value                                 --        --        --      --      --
   EOP Unit Value                             $10.23        --        --      --      --      --
   Number of Units                                --        --        --      --      --      --
------------------------------------------------------------------------------------------------
AST AllianceBernstein Growth & Income (1992)
   With No Optional Benefits
   BOP Unit Value                             $11.24    $10.25     $7.84   10.35   10.53
   EOP Unit Value                              11.63     11.24     10.25    7.84   10.35   10.53
   Number of Units                         5,200,126 4,119,501 3,076,626 142,152 205,232  34,439
   With LT5, HDV, and EBP
   BOP Unit Value                                 --        --        --      --      --
   EOP Unit Value                             $10.18        --        --      --      --      --
   Number of Units                                --        --        --      --      --      --
------------------------------------------------------------------------------------------------
AST Large-Cap Value (formerly AST Hotchkis
 & Wiley Large-Cap Value)
   With No Optional Benefits
   BOP Unit Value                             $10.25     $8.99     $7.59    9.31   10.32
   EOP Unit Value                              10.77     10.25      8.99    7.59    9.31   10.32
   Number of Units                           694,885   417,314   204,589  44,419  44,212   8,596
   With LT5, HDV, and EBP
   BOP Unit Value                                 --        --        --      --      --
   EOP Unit Value                             $10.47        --        --      --      --      --
   Number of Units                                --        --        --      --      --      --
------------------------------------------------------------------------------------------------
</R>


                                      A-4



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


<R>
OPTIMUM - Prospectus (continued)
</R>

<R>
SUB-ACCOUNT                             2005      2004      2003     2002    2001    2000
------------------------------------------------------------------------------------------
AST T. Rowe Price Global Bond (1994)
   With No Optional Benefits
   BOP Unit Value                        $14.73    $13.73    $12.32   10.84    10.7
   EOP Unit Value                         13.89     14.73     13.73   12.32   10.84   10.7
   Number of Units                      938,585   657,913   289,862  36,987  16,390    -0-
   With LT5, HDV, and EBP
   BOP Unit Value                            --        --        --      --      --
   EOP Unit Value                         $9.37        --        --      --      --     --
   Number of Units                           --        --        --      --      --     --
------------------------------------------------------------------------------------------
AST Lord Abbett Bond-Debenture (2000)
   With No Optional Benefits
   BOP Unit Value                        $12.71    $11.98    $10.22    10.3   10.13
   EOP Unit Value                         12.69     12.71     11.98   10.22    10.3  10.13
   Number of Units                    1,294,706 1,012,739   814,135  43,077  16,628    425
   With LT5, HDV, and EBP
   BOP Unit Value                            --        --        --      --      --
   EOP Unit Value                         $9.87        --        --      --      --     --
   Number of Units                           --        --        --      --      --     --
------------------------------------------------------------------------------------------
AST PIMCO Total Return Bond (1994)
   With No Optional Benefits
   BOP Unit Value                        $13.72    $13.23    $12.72    11.8   10.97
   EOP Unit Value                         13.88     13.72     13.23   12.72    11.8  10.97
   Number of Units                    1,924,370 3,074,732 2,301,863 362,294 275,317 37,918
   With LT5, HDV, and EBP
   BOP Unit Value                            --        --        --      --      --
   EOP Unit Value                        $10.07        --        --      --      --     --
   Number of Units                           --        --        --      --      --     --
------------------------------------------------------------------------------------------
AST PIMCO Limited Maturity Bond (1995)
   With No Optional Benefits
   BOP Unit Value                        $12.18    $12.08    $10.09   11.29   10.59
   EOP Unit Value                         12.22     12.18     12.08   10.09   11.29  10.59
   Number of Units                    2,996,257 2,189,975   956,856  38,260 112,948  1,940
   With LT5, HDV, and EBP
   BOP Unit Value                            --        --        --      --      --
   EOP Unit Value                         $9.98        --        --      --      --     --
   Number of Units                           --        --        --      --      --     --
------------------------------------------------------------------------------------------
AST Money Market (1992)
   With No Optional Benefits
   BOP Unit Value                        $10.46    $10.51    $10.57   10.57   10.32
   EOP Unit Value                         10.62     10.46     10.51   10.57   10.57  10.32
   Number of Units                    3,179,376 1,663,940 1,245,396 403,604 179,509 29,567
   With LT5, HDV, and EBP
   BOP Unit Value                            --        --        --      --      --
   EOP Unit Value                        $10.02        --        --      --      --     --
   Number of Units                           --        --        --      --      --     --
------------------------------------------------------------------------------------------
</R>

                                      A-5



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


OPTIMUM Four - Prospectus

<R>
SUB-ACCOUNT                                      2005       2004      2003      2002
---------------------------------------------------------------------------------------
AST JP Morgan International Equity
   With No Optional Benefits
   BOP Unit Value                                 $12.67     $11.00     $8.56
   EOP Unit Value                                  13.84      12.67     11.00      8.56
   Number of Units                             5,621,836  3,227,381 2,415,394 2,569,506
   With LT5, HDV and EBP
   BOP Unit Value                                     --         --        --
   EOP Unit Value                                 $10.53         --        --        --
   Number of Units                                    --         --        --        --
---------------------------------------------------------------------------------------
AST William Blair International Growth (1997)
   With No Optional Benefits
   BOP Unit Value                                 $15.30     $13.39     $9.72
   EOP Unit Value                                  17.54      15.30     13.39      9.72
   Number of Units                            12,141,522 11,265,469 5,547,558   835,523
   With LT5, HDV and EBP
   BOP Unit Value                                     --         --        --
   EOP Unit Value                                 $11.16         --        --        --
   Number of Units                                    --         --        --        --
---------------------------------------------------------------------------------------
AST LSV International Value
   With No Optional Benefits
   BOP Unit Value                                 $12.84     $10.79     $8.19
   EOP Unit Value                                  14.36      12.84     10.79      8.19
   Number of Units                             2,013,544  1,897,469 1,201,268   269,995
   With LT5, HDV and EBP
   BOP Unit Value                                     --         --        --
   EOP Unit Value                                 $10.59         --        --        --
   Number of Units                                    --         --        --        --
---------------------------------------------------------------------------------------
AST Small-Cap Growth
   With No Optional Benefits
   BOP Unit Value                                  $9.05      $9.89     $6.92
   EOP Unit Value                                   9.04       9.05      9.89      6.92
   Number of Units                             2,134,730  2,242,129 3,292,593 1,970,250
   With LT5, HDV and EBP
   BOP Unit Value                                     --         --        --
   EOP Unit Value                                 $10.31         --        --        --
   Number of Units                                    --         --        --        --
---------------------------------------------------------------------------------------
AST DeAM Small-Cap Growth (1999)
   With No Optional Benefits
   BOP Unit Value                                 $11.98     $11.13     $7.67
   EOP Unit Value                                  11.83      11.98     11.13      7.67
   Number of Units                             1,385,430  1,618,719 1,682,193   639,695
   With LT5, HDV and EBP
   BOP Unit Value                                     --         --        --
   EOP Unit Value                                 $10.20         --        --        --
   Number of Units                                    --         --        --        --
---------------------------------------------------------------------------------------
</R>


                                      A-7




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

OPTIMUM Four - Prospectus (continued)

<R>
SUB-ACCOUNT                                  2005       2004       2003      2002
------------------------------------------------------------------------------------
AST Federated Aggressive Growth (2000)
   With No Optional Benefits
   BOP Unit Value                             $15.42     $12.74      $7.64
   EOP Unit Value                              16.60      15.42      12.74      7.64
   Number of Units                         5,464,856  4,808,453  3,085,373 1,255,415
   With LT5, HDV and EBP
   BOP Unit Value                                 --         --         --
   EOP Unit Value                             $10.84         --         --        --
   Number of Units                                --         --         --        --
------------------------------------------------------------------------------------
AST Small-Cap Value (1997)
   With No Optional Benefits
   BOP Unit Value                             $14.22     $12.42      $9.30
   EOP Unit Value                              14.91      14.22      12.42      9.30
   Number of Units                        11,285,282 10,785,030 10,183,346 6,141,523
   With LT5, HDV and EBP
   BOP Unit Value                                 --         --         --
   EOP Unit Value                             $10.53         --         --        --
   Number of Units                                --         --         --        --
------------------------------------------------------------------------------------
AST Goldman Sachs Mid-Cap Growth (2000)
   With No Optional Benefits
   BOP Unit Value                             $11.80     $10.31      $7.97
   EOP Unit Value                              12.16      11.80      10.31      7.97
   Number of Units                         5,391,424  4,375,813  3,027,057 1,273,118
   With LT5, HDV and EBP
   BOP Unit Value                                 --         --         --
   EOP Unit Value                             $10.46         --         --        --
   Number of Units                                --         --         --        --
------------------------------------------------------------------------------------
AST Neuberger Berman Mid-Cap Value (1993)
   With No Optional Benefits
   BOP Unit Value                             $14.51     $12.01      $8.96
   EOP Unit Value                              15.99      14.51      12.01      8.96
   Number of Units                        12,260,007 11,461,684  8,530,129 5,118,558
   With LT5, HDV and EBP
   BOP Unit Value                                 --         --         --
   EOP Unit Value                             $10.76         --         --        --
   Number of Units                                --         --         --        --
------------------------------------------------------------------------------------
AST T. Rowe Price Large-Cap Growth
   With No Optional Benefits
   BOP Unit Value                              $9.44      $9.08      $7.46
   EOP Unit Value                              10.81       9.44       9.08      7.46
   Number of Units                         3,925,740  2,378,881  2,098,873 1,869,353
   With LT5, HDV and EBP
   BOP Unit Value                                 --         --         --
   EOP Unit Value                             $11.98         --         --        --
   Number of Units                                --         --         --        --
------------------------------------------------------------------------------------
</R>


                                      A-8



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


OPTIMUM Four - Prospectus (continued)

<R>
SUB-ACCOUNT                                        2005       2004       2003       2002
-------------------------------------------------------------------------------------------
AST MFS Growth (1999)
   With No Optional Benefits
   BOP Unit Value                                    $9.97      $9.16      $7.58
   EOP Unit Value                                    10.43       9.97       9.16       7.58
   Number of Units                               5,915,443  4,529,834  4,784,269  2,930,432
   With LT5, HDV and EBP
   BOP Unit Value                                       --         --         --
   EOP Unit Value                                   $10.64         --         --         --
   Number of Units                                      --         --         --         --
-------------------------------------------------------------------------------------------
AST Marsico Capital Growth (1997)
   With No Optional Benefits
   BOP Unit Value                                   $12.26     $10.78      $8.32
   EOP Unit Value                                    12.88      12.26      10.78       8.32
   Number of Units                              32,140,125 28,117,310 20,138,164 10,144,317
   With LT5, HDV and EBP
   BOP Unit Value                                       --         --         --
   EOP Unit Value                                   $10.78         --         --         --
   Number of Units                                      --         --         --         --
-------------------------------------------------------------------------------------------
AST AllianceBernstein Core Value (2001)
   With No Optional Benefits
   BOP Unit Value                                   $12.39     $11.06      $8.76
   EOP Unit Value                                    12.86      12.39      11.06       8.76
   Number of Units                               4,311,857  4,643,022  3,621,862  6,005,922
   With LT5, HDV and EBP
   BOP Unit Value                                       --         --         --
   EOP Unit Value                                   $10.20         --         --         --
   Number of Units                                      --         --         --         --
-------------------------------------------------------------------------------------------
AST AllianceBernstein Growth & Income (1992)
   With No Optional Benefits
   BOP Unit Value                                   $11.46     $10.50      $8.06
   EOP Unit Value                                    11.81      11.46      10.50       8.06
   Number of Units                              31,190,346 25,850,506 21,264,670  6,667,373
   With LT5, HDV and EBP
   BOP Unit Value                                       --         --         --
   EOP Unit Value                                   $10.15         --         --         --
   Number of Units                                      --         --         --         --
-------------------------------------------------------------------------------------------
AST Large-Cap Value
(formerly AST Hotchkis & Wiley Large-Cap Value)
   With No Optional Benefits
   BOP Unit Value                                   $11.17      $9.83      $8.34
   EOP Unit Value                                    11.69      11.17       9.83       8.34
   Number of Units                               5,245,455  3,717,848  2,647,064  2,110,071
   With LT5, HDV and EBP
   BOP Unit Value                                       --         --         --
   EOP Unit Value                                   $10.44         --         --         --
   Number of Units                                      --         --         --         --
-------------------------------------------------------------------------------------------
</R>


                                      A-9




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

OPTIMUM Four - Prospectus (continued)

<R>
SUB-ACCOUNT                               2005       2004       2003       2002
----------------------------------------------------------------------------------
AST T. Rowe Price Global Bond (1994)
   With No Optional Benefits
   BOP Unit Value                          $13.45     $12.59     $11.34
   EOP Unit Value                           12.64      13.45      12.59      11.34
   Number of Units                      6,261,824  4,717,822  2,962,471  1,739,313
   With LT5, HDV and EBP
   BOP Unit Value                              --         --         --
   EOP Unit Value                           $9.34         --         --         --
   Number of Units                             --         --         --         --
----------------------------------------------------------------------------------
AST Lord Abbett Bond-Debenture (2000)
   With No Optional Benefits
   BOP Unit Value                          $12.26     $11.61      $9.94
   EOP Unit Value                           12.20      12.26      11.61       9.94
   Number of Units                     12,427,806  8,369,008  7,751,236  4,146,530
   With LT5, HDV and EBP
   BOP Unit Value                              --         --         --
   EOP Unit Value                           $9.84         --         --         --
   Number of Units                             --         --         --         --
----------------------------------------------------------------------------------
AST PIMCO Total Return Bond (1994)
   With No Optional Benefits
   BOP Unit Value                          $11.31     $10.95     $10.57
   EOP Unit Value                           11.40      11.31      10.95      10.57
   Number of Units                     22,436,395 33,208,749 26,287,388 20,544,075
   With LT5, HDV and EBP
   BOP Unit Value                              --         --         --
   EOP Unit Value                          $10.04         --         --         --
   Number of Units                             --         --         --         --
----------------------------------------------------------------------------------
AST PIMCO Limited Maturity Bond (1995)
   With No Optional Benefits
   BOP Unit Value                          $10.55     $10.51     $10.34
   EOP Unit Value                           10.54      10.55      10.51      10.34
   Number of Units                     28,031,653 21,299,789 15,242,856 11,274,642
   With LT5, HDV and EBP
   BOP Unit Value                              --         --         --
   EOP Unit Value                           $9.94         --         --         --
   Number of Units                             --         --         --         --
----------------------------------------------------------------------------------
AST Money Market (1992)
   With No Optional Benefits
   BOP Unit Value                           $9.78      $9.86      $9.96
   EOP Unit Value                            9.88       9.78       9.86       9.96
   Number of Units                     42,442,274 29,870,576 32,730,501 36,255,772
   With LT5, HDV and EBP
   BOP Unit Value                              --         --         --
   EOP Unit Value                           $9.99         --         --         --
   Number of Units                             --         --         --         --
----------------------------------------------------------------------------------
</R>


                                     A-10




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

OPTIMUM Plus - Prospectus

<R>
SUB-ACCOUNT                                      2005       2004      2003      2002
---------------------------------------------------------------------------------------
AST JP Morgan International Equity
   With No Optional Benefits
   BOP Unit Value                                 $12.67     $11.00     $8.56
   EOP Unit Value                                  13.84      12.67     11.00      8.56
   Number of Units                             5,621,836  3,227,381 2,415,394 2,569,506
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --        --
   EOP Unit Value                                 $10.53         --        --        --
   Number of Units                                    --         --        --        --
---------------------------------------------------------------------------------------
AST William Blair International Growth (1997)
   With No Optional Benefits
   BOP Unit Value                                 $15.30     $13.39     $9.72
   EOP Unit Value                                  17.54      15.30     13.39      9.72
   Number of Units                            12,141,522 11,265,469 5,547,558   835,523
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --        --
   EOP Unit Value                                 $11.16         --        --        --
   Number of Units                                    --         --        --        --
---------------------------------------------------------------------------------------
AST LSV International Value
   With No Optional Benefits
   BOP Unit Value                                 $12.84     $10.79     $8.19
   EOP Unit Value                                  14.36      12.84     10.79      8.19
   Number of Units                             2,013,544  1,897,469 1,201,268   269,995
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --        --
   EOP Unit Value                                 $10.59         --        --        --
   Number of Units                                    --         --        --        --
---------------------------------------------------------------------------------------
AST Small-Cap Growth
   With No Optional Benefits
   BOP Unit Value                                  $9.05      $9.89     $6.92
   EOP Unit Value                                   9.04       9.05      9.89      6.92
   Number of Units                             2,134,730  2,242,129 3,292,593 1,970,250
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --        --
   EOP Unit Value                                 $10.31         --        --        --
   Number of Units                                    --         --        --        --
---------------------------------------------------------------------------------------
AST DeAM Small-Cap Growth
   With No Optional Benefits
   BOP Unit Value                                 $11.98     $11.13     $7.67
   EOP Unit Value                                  11.83      11.98     11.13      7.67
   Number of Units                             1,385,430  1,618,719 1,682,193   639,695
   With LT5, HDV, and EBP
   BOP Unit Value                                     --         --        --
   EOP Unit Value                                 $10.20         --        --        --
   Number of Units                                    --         --        --        --
---------------------------------------------------------------------------------------
</R>


                                     A-12



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


OPTIMUM Plus - Prospectus (continued)

<R>
 SUB-ACCOUNT                           2005       2004       2003      2002
 -----------------------------------------------------------------------------
 AST Federated Aggressive Growth
    With No Optional Benefits
    BOP Unit Value                      $15.42     $12.74      $7.64
    EOP Unit Value                       16.60      15.42      12.74      7.64
    Number of Units                  5,464,856  4,808,453  3,085,373 1,255,415
    With LT5, HDV, and EBP
    BOP Unit Value                          --         --         --
    EOP Unit Value                      $10.84         --         --        --
    Number of Units                         --         --         --        --
 -----------------------------------------------------------------------------
 AST Small-Cap Value
    With No Optional Benefits
    BOP Unit Value                      $14.22     $12.42      $9.30
    EOP Unit Value                       14.91      14.22      12.42      9.30
    Number of Units                 11,285,282 10,785,030 10,183,346 6,141,523
    With LT5, HDV, and EBP
    BOP Unit Value                          --         --         --
    EOP Unit Value                      $10.53         --         --        --
    Number of Units                         --         --         --        --
 -----------------------------------------------------------------------------
 AST Goldman Sachs Mid-Cap Growth
    With No Optional Benefits
    BOP Unit Value                      $11.80     $10.31      $7.97
    EOP Unit Value                       12.16      11.80      10.31      7.97
    Number of Units                  5,391,424  4,375,813  3,027,057 1,273,118
    With LT5, HDV, and EBP
    BOP Unit Value                          --         --         --
    EOP Unit Value                      $10.46         --         --        --
    Number of Units                         --         --         --        --
 -----------------------------------------------------------------------------
 AST Neuberger Berman Mid-Cap Value
    With No Optional Benefits
    BOP Unit Value                      $14.51     $12.01      $8.96
    EOP Unit Value                       15.99      14.51      12.01      8.96
    Number of Units                 12,260,007 11,461,684  8,530,129 5,118,558
    With LT5, HDV, and EBP
    BOP Unit Value                          --         --         --
    EOP Unit Value                      $10.76         --         --        --
    Number of Units                         --         --         --        --
 -----------------------------------------------------------------------------
 AST T. Rowe Price Large-Cap Growth
    With No Optional Benefits
    BOP Unit Value                       $9.44      $9.08      $7.46
    EOP Unit Value                       10.81       9.44       9.08      7.46
    Number of Units                  3,925,740  2,378,881  2,098,873 1,869,353
    With LT5, HDV, and EBP
    BOP Unit Value                          --         --         --
    EOP Unit Value                      $11.98         --         --        --
    Number of Units                         --         --         --        --
 -----------------------------------------------------------------------------
</R>


                                     A-13




APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix A -- Condensed Financial Information About Separate Account B continued

OPTIMUM Plus - Prospectus (continued)

<R>
SUB-ACCOUNT                                     2005       2004       2003       2002
----------------------------------------------------------------------------------------
AST MFS Growth (1999)
   With No Optional Benefits
   BOP Unit Value                                 $9.97      $9.16      $7.58
   EOP Unit Value                                 10.43       9.97       9.16       7.58
   Number of Units                            5,915,443  4,529,834  4,784,269  2,930,432
   With LT5, HDV, and EBP
   BOP Unit Value                                    --         --         --
   EOP Unit Value                                $10.64         --         --         --
   Number of Units                                   --         --         --         --
----------------------------------------------------------------------------------------
AST Marsico Capital Growth (1997)
   With No Optional Benefits
   BOP Unit Value                                $12.26     $10.78      $8.32
   EOP Unit Value                                 12.88      12.26      10.78       8.32
   Number of Units                           32,140,125 28,117,321 20,138,164 10,144,317
   With LT5, HDV, and EBP
   BOP Unit Value                                    --         --         --
   EOP Unit Value                                $10.78         --         --         --
   Number of Units                                   --         --         --         --
----------------------------------------------------------------------------------------
AST AllianceBernstein Core Value (2001)
   With No Optional Benefits
   BOP Unit Value                                $12.39     $11.06      $8.76
   EOP Unit Value                                 12.86      12.39      11.06       8.76
   Number of Units                            4,311,857  4,643,022  3,621,862  6,005,922
   With LT5, HDV, and EBP
   BOP Unit Value                                    --         --         --
   EOP Unit Value                                $10.20         --         --         --
   Number of Units                                   --         --         --         --
----------------------------------------------------------------------------------------
AST AllianceBernstein Growth & Income (1992)
   With No Optional Benefits
   BOP Unit Value                                $11.46     $10.50      $8.06
   EOP Unit Value                                 11.81      11.46      10.50       8.06
   Number of Units                           31,190,346 25,850,506 21,264,670  6,667,373
   With LT5, HDV, and EBP
   BOP Unit Value                                    --         --         --
   EOP Unit Value                                $10.15         --         --         --
   Number of Units                                   --         --         --         --
----------------------------------------------------------------------------------------
AST Large-Cap Value
 (formerly AST Hotchkis & Wiley Large-Cap Value)
   With No Optional Benefits
   BOP Unit Value                                $11.17      $9.83      $8.34
   EOP Unit Value                                 11.69      11.17       9.83       8.34
   Number of Units                            5,245,458  3,717,848  2,647,064  2,110,071
   With LT5, HDV, and EBP
   BOP Unit Value                                    --         --         --
   EOP Unit Value                                $10.44         --         --         --
   Number of Units                                   --         --         --         --
----------------------------------------------------------------------------------------
</R>


                                     A-14



APPENDIX A

AMERICAN SKANDIA ANNUITIES PROSPECTUS


OPTIMUM Plus - Prospectus (continued)

<R>
SUB-ACCOUNT                               2005       2004       2003       2002
----------------------------------------------------------------------------------
AST T. Rowe Price Global Bond (1994)
   With No Optional Benefits
   BOP Unit Value                          $13.45     $12.59     $11.34
   EOP Unit Value                           12.64      13.45      12.59      11.34
   Number of Units                      6,261,824  4,717,822  2,962,471  1,739,313
   With LT5, HDV, and EBP
   BOP Unit Value                              --         --         --
   EOP Unit Value                           $9.34         --         --         --
   Number of Units                             --         --         --         --
----------------------------------------------------------------------------------
AST Lord Abbett Bond-Debenture (2000)
   With No Optional Benefits
   BOP Unit Value                          $12.26     $11.61      $9.94
   EOP Unit Value                           12.20      12.26      11.61       9.94
   Number of Units                     12,427,806  8,369,008  7,751,236  4,146,530
   With LT5, HDV, and EBP
   BOP Unit Value                              --         --         --
   EOP Unit Value                           $9.84         --         --         --
   Number of Units                             --         --         --         --
----------------------------------------------------------------------------------
AST PIMCO Total Return Bond (1994)
   With No Optional Benefits
   BOP Unit Value                          $11.31     $10.95     $10.57
   EOP Unit Value                           11.40      11.31      10.95      10.57
   Number of Units                     22,436,395 33,208,749 26,287,388 20,544,075
   With LT5, HDV, and EBP
   BOP Unit Value                              --         --         --
   EOP Unit Value                          $10.04         --         --         --
   Number of Units                             --         --         --         --
----------------------------------------------------------------------------------
AST PIMCO Limited Maturity Bond (1995)
   With No Optional Benefits
   BOP Unit Value                          $10.55     $10.51     $10.34
   EOP Unit Value                           10.54      10.55      10.51      10.34
   Number of Units                     28,031,653 21,299,789 15,242,856 11,274,642
   With LT5, HDV, and EBP
   BOP Unit Value                              --         --         --
   EOP Unit Value                           $9.94         --         --         --
   Number of Units                             --         --         --         --
----------------------------------------------------------------------------------
AST Money Market (1992)
   With No Optional Benefits
   BOP Unit Value                           $9.78      $9.86      $9.96
   EOP Unit Value                            9.88       9.78       9.86       9.96
   Number of Units                     42,442,274 29,870,576 32,730,501 36,255,772
   With LT5, HDV, and EBP
   BOP Unit Value                              --         --         --
   EOP Unit Value                           $9.99         --         --         --
   Number of Units                             --         --         --         --
----------------------------------------------------------------------------------
</R>


                                     A-15




APPENDIX B

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix B -- Calculation of Optional Death Benefits

Examples of Enhanced Beneficiary Protection Optional Death Benefit Calculation
The following are examples of how the Enhanced Beneficiary Protection Optional
Death Benefit is calculated. Each example assumes that a $50,000 initial
Purchase Payment is made. Each example assumes that there is one Owner who is
age 50 on the Issue Date and that all Account Value is maintained in the
variable investment options. The formula for determining the Enhanced
Beneficiary Protection Optional Death Benefit is as follows:

    Growth  =    Account Value of variable    minus   Purchase Payments -
              investment options plus Interim       proportional withdrawals
                Value of Fixed Allocations
                     (no MVA applies)

Example with market increase
Assume that the Owner has made no withdrawals and that the Account Value has
been increasing due to positive market performance. On the date we receive due
proof of death, the Account Value is $75,000. The basic Death Benefit is
calculated as Purchase Payments minus proportional withdrawals, or Account
Value, which ever is greater. Therefore, the basic Death Benefit is equal to
$75,000. The Enhanced Beneficiary Protection Optional Death Benefit is equal to
the amount payable under the basic Death Benefit ($75,000) PLUS 40% of the
"Growth" under the Annuity.

                      Growth                                        =$75,000 - [$50,000 - $0]
                                                                    =$25,000
                      Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth
                                                                    =$25,000 X 0.40
                                                                    =$10,000
                      Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit
                                                                    =$85,000

Examples with market decline
Assume that the Owner has made no withdrawals and that the Account Value has
been decreasing due to declines in market performance. On the date we receive
due proof of death, the Account Value is $45,000. The basic Death Benefit is
calculated as Purchase Payments minus proportional withdrawals, or Account
Value, which ever is greater. Therefore, the basic Death Benefit is equal to
$50,000. The Enhanced Beneficiary Protection Optional Death Benefit is equal to
the amount payable under the basic Death Benefit ($50,000) PLUS the "Growth"
under the Annuity.

                      Growth                                        =$45,000 - [$50,000 - $0]
                                                                    =$-5,000
                      Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth
                                                                    NO BENEFIT IS PAYABLE
                      Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit
                                                                    =$50,000


                                      B-1

APPENDIX B

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix B -- Calculation of Optional Death Benefits continued

In this example you would receive no additional benefit from purchasing the
Enhanced Beneficiary Protection Optional Death Benefit.

Highest Anniversary Value =$90,000 - [$90,000 X $15,000/$75,000]
=$90,000 - $18,000
=$72,000
Basic Death Benefit =max [$80,000, $50,000 - ($50,000 X $15,000/$75,000)]
=max [$80,000, $40,000]
=$80,000

The Death Benefit therefore is $80,000.

B-2

APPENDIX B

AMERICAN SKANDIA ANNUITIES PROSPECTUS

The Death Benefit therefore is $88,214.

Example with market increase and death before Death Benefit Target Date
Assume that the Owner's Account Value has generally been increasing due to
positive market performance and that no withdrawals have been made. On the 7/th
/anniversary of the Issue Date we receive due proof of death, at which time the
Account Value is $75,000; however, the Anniversary Value on the 5/th
/anniversary of the Issue Date was $90,000. Assume as well that the Owner has
died before the Death Benefit Target Date. The Roll-Up Value is equal to
initial Purchase Payment accumulated at 5% for 6 years, or $67,005. The Death
Benefit is equal to the greatest of the Roll-Up Value, Highest Anniversary
Value or the basic Death Benefit. The Death Benefit would be the Highest
Anniversary Value ($90,000) because it is greater than both the Roll-Up Value
($67,005) and the amount that would have been payable under the basic Death
Benefit ($75,000).

B-3




APPENDIX B

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix B -- Calculation of Optional Death Benefits continued



Roll-Up Value               ={(67,005 - $3,350) - [($67,005 - $3,350) X $1,650/($45,000 - $3,350)]} X 1.05
                            =($63,655 - $2,522) X 1.05
                            =$64,190
Highest Anniversary Value   =$70,000 - [$70,000 X $5,000/$45,000]
                            =$70,000 - $7,778
                            =$62,222
Basic Death Benefit         =max [$43,000, $50,000 - ($50,000 X $5,000/$45,000)]
                            =max [$43,000, $44,444]
                            =$44,444

The Death Benefit therefore is $64,190.

Example with death after Death Benefit Target Date
Assume that the Owner has not made any withdrawals prior to the Death Benefit
Target Date. Further assume that the Owner dies after the Death Benefit Target
Date, when the Account Value is $75,000. The Roll-Up Value on the Death Benefit
Target Date (the contract anniversary on or following the Owner's 80/th
/birthday) is equal to initial Purchase Payment accumulated at 5% for 10 years,
or $81,445. The Highest Anniversary Value on the Death Benefit Target Date was
$85,000; however, following the Death Benefit Target Date, the Owner made a
Purchase Payment of $15,000 and later had taken a withdrawal of $5,000 when the
Account Value was $70,000. The Death Benefit is equal to the greatest of the
Roll-Up Value, Highest Anniversary Value or the basic Death Benefit as of the
Death Benefit Target Date; each increased by subsequent purchase payments and
reduced proportionally for subsequent withdrawals.

Roll-Up Value               =$81,445 + $15,000 - [($81,445 + 15,000) X $5,000/$70,000]
                            =$81,445 + $15,000 - $6,889
                            =$89,556
Highest Anniversary Value   =$85,000 + $15,000 - [($85,000 + 15,000) X $5,000/$70,000]
                            =$85,000 + $15,000 - $7,143
                            =$92,857
Basic Death Benefit         =max [$75,000, $50,000 + $15,000 - {(50,000 + $15,000) X $5,000/$70,000}]
                            =max [$75,000, $60,357]
                            =$75,000

The Death Benefit therefore is $92,857.

EXAMPLES OF HIGHEST DAILY VALUE DEATH BENEFIT CALCULATION
The following are examples of how the HDV Death Benefit is calculated. Each
example assumes an initial Purchase Payment of $50,000. Each example assumes
that there is one Owner who is age 70 on the Issue Date.

Example with market increase and death before Death Benefit Target Date
Assume that the Owner's Account Value has generally been increasing due to
positive market performance and that no withdrawals have been made. On the date
we receive due proof of death, the Account Value is $75,000; however, the
Highest Daily Value was $90,000. Assume as well that the Owner has died before
the Death Benefit Target Date. The Death Benefit is equal to the greater of the
Highest Daily Value or the basic Death Benefit. The Death Benefit would be the
HDV ($90,000) because it is greater than the amount that would have been
payable under the basic Death Benefit ($75,000).


                                      B-4




APPENDIX B

AMERICAN SKANDIA ANNUITIES PROSPECTUS




Example with withdrawals
Assume that the Account Value has been increasing due to positive market
performance and the Owner made a withdrawal of $15,000 in Annuity Year 7 when
the Account Value was $75,000. On the date we receive due proof of death, the
Account Value is $80,000; however, the Highest Daily Value ($90,000) was
attained during the fifth Annuity Year. Assume as well that the Owner has died
before the Death Benefit Target Date. The Death Benefit is equal to the greater
of the Highest Daily Value (proportionally reduced by the subsequent
withdrawal) or the basic Death Benefit.

  Highest Daily Value   =$90,000 - [$90,000 X $15,000/$75,000]
                        =$90,000 - $18,000
                        =$72,000
  Basic Death Benefit   =max [$80,000, $50,000 - ($50,000 X $15,000/$75,000)]
                        =max [$80,000, $40,000]
                        =$80,000

The Death Benefit therefore is $80,000.

Example with death after Death Benefit Target Date
Assume that the Owner's Account Value has generally been increasing due to
positive market performance and that no withdrawals had been made prior to the
Death Benefit Target Date. Further assume that the Owner dies after the Death
Benefit Target Date, when the Account Value is $75,000. The Highest Daily Value
on the Death Benefit Target Date was $80,000; however, following the Death
Benefit Target Date, the Owner made a Purchase Payment of $15,000 and later had
taken a withdrawal of $5,000 when the Account Value was $70,000. The Death
Benefit is equal to the greater of the Highest Daily Value on the Death Benefit
Target Date plus Purchase Payments minus proportional withdrawals after the
Death Benefit Target Date or the basic Death Benefit.

Highest Daily Value   =$80,000 + $15,000 - [($80,000 + $15,000) X $5,000/$70,000]
                      =$80,000 + $15,000 - $6,786
                      =$88,214
Basic Death Benefit   =max [$75,000, ($50,000 + $15,000) - {($50,000 + $15,000) X $5,000/$70,000}]
                      =max [$75,000, $60,357]
                      =$75,000

The Death Benefit therefore is $88,214.


                                      B-5




APPENDIX C

OPTIMUM PLUS/SM/ PROSPECTUS

Appendix C -- Additional Information on Asset Allocation Programs

Program Rules
. You can elect an asset allocator program where the Sub-accounts for each
  asset class in each model portfolio are designated based on an evaluation of
  available Sub-accounts. If you elect the Lifetime Five Benefit ("LT5"),
  Spousal Lifetime Five Benefit ("SLT5") or the Highest Daily Value Death
  Benefit ("HDV"), you must enroll in one of the eligible model portfolios.
  Asset allocation is a sophisticated method of diversification that allocates
  assets among asset classes in order to manage investment risk and potentially
  enhance returns over the long term. However, asset allocation does not
  guarantee a profit or protect against a loss.

How the Asset Allocation Program Works
. Amounts will automatically be allocated in accordance with the percentages
  and to Sub-accounts indicated for the model portfolio that you choose. If you
  allocate your Account Value or transfer your Account Value among any
  Sub-accounts that are outside of your model portfolio, we will allocate these
  amounts according to the allocation percentages of the applicable model
  portfolio upon the next rebalancing. You may only choose one model portfolio
  at a time. When you enroll in the asset allocation program and upon each
  rebalance thereafter, 100% of your Account Value allocated to the variable
  Sub-accounts will be allocated to the asset allocation program. Any Account
  Value not invested in the Sub-accounts will not be part of the program.

. Additional Purchase Payments: Unless otherwise requested, any additional
  Purchase Payments applied to the variable Sub-accounts in the Annuity will be
  allocated to the Sub-accounts according to the allocation percentages for the
  model portfolio you choose. Allocation of additional Purchase Payments
  outside of your model portfolio but into a Sub-account, will be reallocated
  according to the allocation percentages of the applicable model portfolio
  upon the next rebalancing.

. Rebalancing Your Model Portfolio: Changes in the value of the Sub-account
  will cause your Account Value allocated to the Sub-accounts to vary from the
  percentage allocations of the model portfolio you select. By selecting the
  asset allocation program, you have directed us to periodically (e.g.,
  quarterly) rebalance your Account Value allocated to the Sub-accounts in
  accordance with the percentage allocations assigned to each Sub-account
  within your model portfolio at the time you elected the program or as later
  modified with your consent. Some asset allocation programs will only require
  that a rebalancing occur when the percent of your Account Value allocated to
  the Sub-accounts are outside of the acceptable range permitted under such
  asset allocation program. Note -- Any Account Value not invested in the
  Sub-accounts will not be affected by any rebalance.

. Sub-account Changes Within the Model Portfolios: From time to time you may be
  notified of a suggested change in a Sub-account or percentage allocated to a
  Sub-account within your model portfolio. If you consent (in the manner that
  is then permitted or required) to the suggested change, then it will be
  implemented upon the next rebalance. If you do not consent then rebalancing
  will continue in accordance with your unchanged model portfolio, unless the
  Sub-account is no longer available under your Annuity, in which case your
  lack of consent will be deemed a request to terminate the asset allocation
  program and the provisions under "Termination or Modification of the Asset
  Allocation Program" will apply.

. Owner Changes in Choice of Model Portfolio: You may change from the model
  portfolio that you have elected to any other currently available model
  portfolio at any time. The change will be implemented on the date we receive
  all required information in the manner that is then permitted or required.

Termination or Modification of the Asset Allocation Program:
. You may request to terminate your asset allocation program at any time. Any
  termination will be effective on the date that American Skandia receives your
  termination request in good order. If you are enrolled in HDV, LT5 or SLT5,
  termination of your asset allocation program must coincide with enrollment in
  a then currently available and approved asset allocation program or other
  approved option. However, if you are enrolled in LT5 or SLT5 you may
  terminate the LT5 or SLT5 benefit in order to then terminate your asset
  allocation program. American Skandia reserves the right to terminate or
  modify the asset allocation program at any time with respect to any programs.

Restrictions on Electing the Asset Allocation:
. You cannot participate in auto-rebalancing or a DCA program while enrolled in
  an asset allocation program. Upon election of an asset allocation program,
  American Skandia will automatically terminate your enrollment in any
  auto-rebalancing or DCA program. Finally, Systematic Withdrawals can only be
  made as flat dollar amounts.

                                      C-1




APPENDIX D

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix D -- Selecting the Variable Annuity That's Right for You

<R>
American Skandia Life Assurance Corporation offers several deferred variable
annuity products. Each annuity has different features and benefits that may be
appropriate for you based on your individual financial situation and how you
intend to use the annuity. Not all of these annuities may be available to you,
depending on your state of residence and/or the broker-dealer through which
your annuity was sold. You can verify which of these annuities is available to
you by speaking to your Financial Professional or calling 1-800-752-6342.
</R>

The different features and benefits may include variations on your ability to
access funds in your annuity without the imposition of a withdrawal charge as
well as different ongoing fees and charges you pay to stay in the contract.
Additionally, differences may exist on various optional benefits such as
guaranteed living benefits or death benefit protection.

Among the factors you should consider when choosing which annuity product may
be most appropriate for your individual needs are the following:
.  Your age;
.  The amount of your investment and any planned future deposits into the
   annuity;
.  How long you intend to hold the annuity (also referred to as investment time
   horizon);
.  Your desire to make withdrawals from the annuity;
.  Your investment return objectives;
.  The effect of optional benefits that may be elected, and
.  Your desire to minimize costs and/or maximize return associated with the
   annuity.

<R>
The following chart outlines some of the different features for each actively
sold American Skandia Annuity offered exclusively through Linsco/Private
Ledger. The availability of optional features, such as those noted in the
chart, may increase the cost of the contract. Therefore you should carefully
consider which features you plan to use when selecting your annuity. You should
also consider the investment objectives, risks, charges and expenses of an
investment carefully before investing.
</R>

In addition, the hypothetical illustrations below reflect the account value and
surrender value of each variable annuity over a variety of holding periods.
These charts are meant to reflect how your annuities can grow or decrease
depending on market conditions and the comparable value of each of the
annuities (which reflects the charges associated with the annuities) under the
assumptions noted.

<R>
Your registered Financial Professional representative can provide you with
prospectuses for one or more of these variable annuities noted in this document
and can guide you through Selecting the Variable Annuity That's Right for You.
</R>

AMERICAN SKANDIA ANNUITY PRODUCT COMPARISON
<R>
Below is a summary of American Skandia's actively sold annuity products offered
exclusively through Linsco/Private Ledger. You should consider the investment
objectives, risks, charges and expenses of an investment in any Annuity
carefully before investing. The prospectus for the Annuities as well as the
underlying portfolio prospectuses contain this and other information about the
variable annuities and underlying investment options. Your registered Financial
Professional can provide you with prospectuses for one or more of these
variable annuities and the underlying portfolios and can help you decide upon
the Annuity that would be most advantageous for you given your individual
needs. Please read the prospectuses carefully before investing.
</R>

                                      D-1




APPENDIX D

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix D -- Selecting the Variable Annuity That's Right for You continued



<R>
                                      OPTIMUM FOUR                     OPTIMUM                      OPTIMUM PLUS
-------------------------------------------------------------------------------------------------------------------------
Minimum Investment           $10,000                        $1,000                         $10,000
-------------------------------------------------------------------------------------------------------------------------
Maximum Issue Age            85                             80                             75
-------------------------------------------------------------------------------------------------------------------------
Withdrawal Charge            4 Years                        8 Years                        10 Years
Schedule                     (8.5%, 8%, 7%, 6%)             (7.5%, 7%, 6.5%, 6%, 5%,       (9%, 9%, 8.5% ,8%, 7%, 6%,
                                                            4%, 3%, 2%)                    5%, 4%, 3%, 2%)
-------------------------------------------------------------------------------------------------------------------------
Insurance and Distribution   1.65%                          1.25% years 1-8; 0.65%         1.65% years 1-10; 0.65%
Charge                                                      years 9+                       years 11+
-------------------------------------------------------------------------------------------------------------------------
Annual Maintenance Fee       Lesser of $35 or               Lesser of $35 or               Lesser of $35 or
                             2% of Account Value*           2% of Account Value*           2% of Account Value
-------------------------------------------------------------------------------------------------------------------------
Contract Credit              Yes. Effective for Contracts   Yes. Effective for Contracts   Yes. The amount of the
                             issued on or after June 20,    issued on or after February    credit applied to a purchase
                             2005, subject to state         13, 2006, subject to state     payment is based on the
                             availability. Generally, we    availability. Generally, we    year the purchase payment
                             apply a Loyalty Credit to your apply a Loyalty Credit to your is received, for the first 6
                             Annuity's Account Value at     Annuity's Account Value at     years of the contract as
                             the end of your fifth contract the end of your fifth contract follows:
                             year (i.e., on your fifth      year (i.e., on your fifth      For contracts issued on or
                             Contract Anniversary). The     Contract Anniversary). The     after February 13, 2006,
                             Loyalty Credit is equal to     Loyalty Credit is equal to     subject to state availability,
                             2.75% (2.25% for contracts     0.50% of total Purchase        the credit percentages for
                             issued between June 20,        Payments made during the       each year, starting with the
                             2005 and February 13,          first four contract years less first, are 6.50%, 5.00%,
                             2006) of total Purchase        the cumulative amount of       4.00%, 3.00%, 2.00%, and
                             Payments made during the       withdrawals made (including    1.00%.
                             first four contract years less the deduction of any CDSC      Generally, for contracts
                             the cumulative amount of       amounts) through the fifth     issued prior to February 13,
                             withdrawals made (including    Contract Anniversary           2006, the credit percentage
                             the deduction of any CDSC                                     for the first year is 6.0%.
                             amounts) through the fifth
                             Contract Anniversary
-------------------------------------------------------------------------------------------------------------------------
Fixed Allocation (early      Fixed Allocation Available     Fixed Allocation Available     Fixed Allocation Available
withdrawals are subject to a (As of May 1, 2005 currently   (As of May 1, 2005 currently   (As of May 1, 2005 currently
Market Value Adjustment)     offering durations of:         offering durations of:         offering durations of:
                             1,2,3,5,7,10 years)            1,2,3,5,7,10 years)            1,2,3,5,7,10 years)
-------------------------------------------------------------------------------------------------------------------------
Variable Investment          All options available          All options available          All options available
Options
-------------------------------------------------------------------------------------------------------------------------
Basic Death Benefit          The greater of: purchase       The greater of: purchase       The greater of: purchase
                             payments less proportional     payments less proportional     payments less proportional
                             withdrawals or account value   withdrawals or account value   withdrawals or account value
                             (no MVA Applied).              (no MVA Applied).              (no MVA Applied) less an
                                                                                           amount equal to the credits
                                                                                           applied within the 12 months
                                                                                           prior to date of death.
-------------------------------------------------------------------------------------------------------------------------
</R>


                                      D-2




APPENDIX D

AMERICAN SKANDIA ANNUITIES PROSPECTUS



                                  OPTIMUM FOUR               OPTIMUM              OPTIMUM PLUS
----------------------------------------------------------------------------------------------------
Optional Death Benefits (for EBP II,                 EBP II,                 EBP II,
an additional cost)/1/       HDV,                    HDV,                    HDV,
                             HAV,                    HAV,                    HAV,
                             Combo 5% Roll-up /HAV   Combo 5% Roll-up/HAV    Combo 5% Roll-up /HAV
----------------------------------------------------------------------------------------------------
Living Benefits (for an      GRO/ GRO Plus,          GRO/ GRO Plus,          GRO/ GRO Plus,
additional cost)/2/          GMWB,                   GMWB,                   GMWB,
                             GMIB,                   GMIB,                   GMIB,
                             Lifetime Five, Spousal  Lifetime Five, Spousal  Lifetime Five, Spousal
                             Lifetime Five           Lifetime Five           Lifetime Five
----------------------------------------------------------------------------------------------------
Annuity Rewards/3/           Available after initial Available after initial Available after initial
                             withdrawal period       withdrawal period       withdrawal period
----------------------------------------------------------------------------------------------------

HYPOTHETICAL ILLUSTRATION
<R>
The following examples outline the value of each annuity as well as the amount
that would be available to an investor as a result of full surrender at the end
of each of the Annuity. The values shown below are based on the following
assumptions:

An initial investment of $100,000 is made into each Annuity earning a gross
rate of return of 0% and 6% respectively.
.  No subsequent deposits or withdrawals are made from the Annuity.
</R>
.  The hypothetical gross rates of return are reduced by the arithmetic average
   of the fees and expenses of the underlying portfolios and the charges that
   are deducted from the Annuity at the Separate Account level as follows/4:/
<R>
 .   0.99% based on the fees and expenses of the underlying portfolios as of
     December 31,2005. The arithmetic average of all fund expenses is computed
     by adding portfolio management fees, 12b-1 fees and other expenses of all
     of the underlying portfolios and then dividing by the number of
     portfolios. For purposes of the illustrations, we do not reflect any
     expense reimbursements or expense waivers that might apply and are
     described in the prospectus fee table.
</R>
 .   The Separate Account level charges include the Insurance Charge and
     Distribution Charge (as applicable).
.  The Annuity Value and Surrender Value are further reduced by the annual
   maintenance fee. For Optimum Plus, Optimum Four, and Optimum, the Annuity
   Value and Surrender Value also reflect the addition of any applicable
   credits.


                                      D-3




APPENDIX D

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix D -- Selecting the Variable Annuity That's Right for You continued



<R>
The Contract Value assumes no surrender, while the Surrender Value assumes a
100% surrender two days prior to the anniversary of the Issue Date of the
Annuity ("Annuity Anniversary"), therefore reflecting the withdrawal charge
applicable to that Annuity year. Note that a withdrawal on the Annuity
Anniversary would be subject to the withdrawal charge applicable to the next
Annuity year, which usually is lower. The values that you actually experience
under an Annuity will be different than what is depicted here if any of the
assumptions we make here differ from your circumstances, however the relative
values for each product reflected below will remain the same. (We will provide
you with a personalized illustration upon request). Shaded cells represent the
product with the highest customer Surrender Value for the contract year.
Multiple shaded cells represent a tie between two or more annuities.
</R>

0% GROSS RATE OF RETURN

<R>
                 OPTIMUM FOUR         OPTIMUM          OPTIMUM PLUS
          ------------------------------------------------------------
              CONTRACT SURRENDER CONTRACT SURRENDER CONTRACT SURRENDER
          YR   VALUE     VALUE    VALUE     VALUE    VALUE     VALUE
          ------------------------------------------------------------
           1   97,383   88,883    97,778   89,278   103,713   95,213
          ------------------------------------------------------------
           2   94,794   86,794    95,566   88,566   100,958   91,958
          ------------------------------------------------------------
           3   92,273   85,273    93,403   86,903    98,275   89,775
          ------------------------------------------------------------
           4   89,818   83,818    91,288   85,288    95,663   87,663
          ------------------------------------------------------------
           5   87,428   87,428    89,220   84,220    93,119   86,119
          ------------------------------------------------------------
           6   87,778   87,778    87,687   83,687    90,642   84,642
          ------------------------------------------------------------
           7   85,441   85,441    85,700   82,700    88,229   83,229
          ------------------------------------------------------------
           8   83,165   83,165    83,757   81,757    85,880   81,880
          ------------------------------------------------------------
           9   80,949   80,949    82,353   82,353    83,593   80,593
          ------------------------------------------------------------
          10   78,791   78,791    80,973   80,973    81,366   79,366
          ------------------------------------------------------------
          11   76,690   76,690    79,616   79,616    80,000   80,000
          ------------------------------------------------------------
          12   74,643   74,643    78,281   78,281    78,659   78,659
          ------------------------------------------------------------
          13   72,651   72,651    76,968   76,968    77,339   77,339
          ------------------------------------------------------------
          14   70,711   70,711    75,676   75,676    76,042   76,042
          ------------------------------------------------------------
          15   68,821   68,821    74,405   74,405    74,765   74,765
          ------------------------------------------------------------
          16   66,982   66,982    73,155   73,155    73,509   73,509
          ------------------------------------------------------------
          17   65,190   65,190    71,926   71,926    72,274   72,274
          ------------------------------------------------------------
          18   63,446   63,446    70,716   70,716    71,059   71,059
          ------------------------------------------------------------
          19   61,747   61,747    69,527   69,527    69,864   69,864
          ------------------------------------------------------------
          20   60,093   60,093    68,357   68,357    68,688   68,688
          ------------------------------------------------------------
          21   58,482   58,482    67,205   67,205    67,531   67,531
          ------------------------------------------------------------
          22   56,914   56,914    66,073   66,073    66,394   66,394
          ------------------------------------------------------------
          23   55,386   55,386    64,959   64,959    65,275   65,275
          ------------------------------------------------------------
          24   53,899   53,899    63,864   63,864    64,174   64,174
          ------------------------------------------------------------
          25   52,451   52,451    62,786   62,786    63,091   63,091
          ------------------------------------------------------------
</R>

<R>
Assumptions:
a. $100,000 initial investment
b. Fund Expenses = 0.99%
c. No optional death benefits or living benefits elected
d. Annuity was issued on or after February 13, 2006
e. Surrender value assumes surrender 2 days before policy anniversary
</R>


                                      D-4




APPENDIX D

AMERICAN SKANDIA ANNUITIES PROSPECTUS




<R>
6% GROSS RATE OF RETURN
</R>

<R>
                   OPTIMUM 4          OPTIMUM         OPTIMUM PLUS
           ----------------------------------------------------------
               CONTRACT SURRENDER CONTRACT  SURR   CONTRACT SURRENDER
                VALUE     VALUE    VALUE    VALUE   VALUE     VALUE
           ----------------------------------------------------------
            1  103,210    94,710  103,629   95,129 109,919   101,419
           ----------------------------------------------------------
            2  106,532    98,532  107,399  100,399 113,421   104,421
           ----------------------------------------------------------
            3  109,961   102,961  111,307  104,807 117,035   108,535
           ----------------------------------------------------------
            4  113,501   107,501  115,357  109,357 120,767   112,767
           ----------------------------------------------------------
            5  117,154   117,154  119,555  114,555 124,618   117,618
           ----------------------------------------------------------
            6  123,764   123,764  124,423  120,423 128,593   122,593
           ----------------------------------------------------------
            7  127,748   127,748  128,951  125,951 132,696   127,696
           ----------------------------------------------------------
            8  131,860   131,860  133,643  131,643 136,932   132,932
           ----------------------------------------------------------
            9  136,104   136,104  139,345  139,345 141,303   138,303
           ----------------------------------------------------------
           10  140,485   140,485  145,293  145,293 145,815   143,815
           ----------------------------------------------------------
           11  145,007   145,007  151,495  151,495 151,999   151,999
           ----------------------------------------------------------
           12  149,675   149,675  157,961  157,961 158,450   158,450
           ----------------------------------------------------------
           13  154,493   154,493  164,703  164,703 165,177   165,177
           ----------------------------------------------------------
           14  159,466   159,466  171,734  171,734 172,191   172,191
           ----------------------------------------------------------
           15  164,599   164,599  179,064  179,064 179,504   179,504
           ----------------------------------------------------------
           16  169,897   169,897  186,707  186,707 187,130   187,130
           ----------------------------------------------------------
           17  175,366   175,366  194,677  194,677 195,081   195,081
           ----------------------------------------------------------
           18  181,011   181,011  202,986  202,986 203,371   203,371
           ----------------------------------------------------------
           19  186,838   186,838  211,651  211,651 212,015   212,015
           ----------------------------------------------------------
           20  192,852   192,852  220,685  220,685 221,029   221,029
           ----------------------------------------------------------
           21  199,060   199,060  230,105  230,105 230,427   230,427
           ----------------------------------------------------------
           22  205,467   205,467  239,926  239,926 240,226   240,226
           ----------------------------------------------------------
           23  212,081   212,081  250,167  250,167 250,443   250,443
           ----------------------------------------------------------
           24  218,908   218,908  260,846  260,846 261,097   261,097
           ----------------------------------------------------------
           25  225,954   225,954  271,980  271,980 272,205   272,205
           ----------------------------------------------------------
</R>

<R>
Assumptions:
a. $100,000 initial investment
b. Fund Expenses = 0.99%
c. No optional death benefits or living benefits elected
d. Annuity was issued on or after February 13, 2006
e. Surrender value assumes surrender 2 days before policy anniversary
</R>


                                      D-5




APPENDIX D

AMERICAN SKANDIA ANNUITIES PROSPECTUS

Appendix D -- Selecting the Variable Annuity That's Right for You continued



In addition, the following charts indicate the days (measured from the Issue
Date) in which each annuity product would have the highest Surrender Value
amongst the products listed given the above assumptions.

0% GROSS RATE OF RETURN

<R>
PRODUCT NAME                 TOTAL DAYS       YEARS FROM THE ISSUE                DAYS WITHIN
                     IN WHICH PRODUCT'S          DATE IN WHICH THE    THE PERIOD IN WHICH THE
             SURRENDER VALUE IS HIGHEST SURRENDER VALUE IS HIGHEST SURRENDER VALUE IS HIGHEST
---------------------------------------------------------------------------------------------
Optimum Four            1460                          4                          1460
                                                      5                     1461-1825
                                                      6                     1826-2190
                                                      7                     2191-2555
                                                      8                     2556-2919
---------------------------------------------------------------------------------------------
Optimum                  730                          8                          2920
                                                      9                     2921-3285
                                                     10                     3286-3649
---------------------------------------------------------------------------------------------
Optimum Plus            8760                        1-3                        1-1095
                                                      4                     1096-1459
                                                     10                          3650
                                                  11-30                    3651-10950
---------------------------------------------------------------------------------------------
</R>

6% GROSS RATE OF RETURN

<R>
PRODUCT NAME                 TOTAL DAYS       YEARS FROM THE ISSUE                DAYS WITHIN
                     IN WHICH PRODUCT'S          DATE IN WHICH THE    THE PERIOD IN WHICH THE
             SURRENDER VALUE IS HIGHEST SURRENDER VALUE IS HIGHEST SURRENDER VALUE IS HIGHEST
---------------------------------------------------------------------------------------------
Optimum Four             729                          6                     1826-2190
                                                      7                     2191-2554
---------------------------------------------------------------------------------------------
Optimum                  656                          9                     2993-3285
                                                     10                     3286-3649
---------------------------------------------------------------------------------------------
Optimum Plus            9565                        1-5                        1-1825
                                                      7                          2555
                                                      8                     2556-2920
                                                      9                     2921-2993
                                                     10                          3650
                                                  11-30                    3651-10950
---------------------------------------------------------------------------------------------
</R>
Days listed assume 365 days per year and do not account for Leap Years.

<R>
* Annual maintenance fee is waived for account values of $100,000 or more.
</R>
1)For more information on these benefits, refer to the "Death Benefit" section
  in the Prospectus.
2)For more information on these benefits, refer to the "Living Benefit
  Programs" section in the Prospectus.
3)The Annuity Rewards benefit offers Owners an ability to increase the
  guaranteed death benefit so that the death benefit will at least equal the
  Annuity's account value on the effective date of the Annuity Rewards
  benefits, if the terms of the Annuity Rewards benefit are met.
4)These reductions result in hypothetical net rates of return corresponding to
  the 0% and 6% gross rates of return, respectively as follows: Optimum Four
  -3.17% and 2.64%; Optimum -2.78% and 3.05% in years 1-8 and -2.19% and 3.68%
  in years 9+, Optimum Plus -3.17% and 2.64% in years 1-10 and -2.19% and 3.68%
  in years 11+.

                                      D-6

Item 15. Indemnification of Directors and Officers: Under Section 33-320a of the Connecticut General Statutes, the Registrant must indemnify a director or officer against judgments, fines, penalties, amounts paid in settlement and reasonable expenses including attorneys’ fees, for actions brought or threatened to be brought against him in his capacity as a director or officer when certain disinterested parties determine that he acted in good faith and in a manner he reasonably believed to be in the best interests of the Registrant. In any criminal action or proceeding, it also must be determined that the director or officer had no reason to believe his conduct was unlawful. The director or officer must also be indemnified when he is successful on the merits in the defense of a proceeding or in circumstances where a court determines that he is fairly and reasonable entitled to be indemnified, and the court approves the amount. In shareholder derivative suits, the director or officer must be finally adjudged not to have breached this duty to the Registrant or a court must determine that he is fairly and reasonably entitled to be indemnified and must approve the amount. In a claim based upon the director’s or officer’s purchase or sale of the Registrants’ securities, the director or officer may obtain indemnification only if a court determines that, in view of all the circumstances, he is fairly and reasonably entitled to be indemnified and then for such amount as the court shall determine. The By-Laws of American Skandia Life Assurance Corporation (“ASLAC”) also provide directors and officers with rights of indemnification, consistent with Connecticut Law.

Directors and officers of ASLAC and American Skandia Marketing, Inc. (“ASM”) can also be indemnified pursuant to indemnity agreements between each director and officer and American Skandia, Inc., a corporation organized under the laws of the state of Delaware. The provisions of the indemnity agreement are governed by Section 45 of the General Corporation Law of the State of Delaware.

The directors and officers of ASLAC and ASM are covered under a directors and officers liability insurance policy. Such policy will reimburse ASLAC or ASM, as applicable, for any payments that it shall make to directors and officers pursuant to law and, subject to certain exclusions contained in the policy, will pay any other costs, charges and expenses, settlements and judgments arising from any proceeding involving any director or officer of ASLAC or ASM, as applicable, in his or her past or present capacity as such.

An index to the financial statement schedules is omitted because it is not required or is not applicable.

(1) To file, during any period in which offers or sales are being made, post-effective amendments to this registration statement:

(i) To include any prospectus required by section 10 (a)(3) of the Securities Act of 1933;

(ii) To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement; and

(iii) To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.

(2) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

(4) The undersigned Registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the Registrant’s annual report pursuant to section 13(a) or section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

(5) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

LEGAL EXPERTS: The Counsel of American Skandia Life Assurance Corporation has passed on the legal matters with respect to Federal laws and regulations applicable to the issue and sale of the Annuities and with respect to Connecticut law.

Pursuant to the requirements of the Securities Act of 1933, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-3 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Shelton, State of Connecticut, on the 21st day of April, 2006.

As required by the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the date indicated.



Title of each class of securities to be registered	Amount to be registered	Proposed maximum offering price per unit	Proposed maximum aggregate offering price**	Amount of registration fee
Market Value Adjusted Annuity Contracts			$-0-	$-0-


	Exhibits	Page
1	Underwriting agreement incorporated by reference to Post Effective Amendment No. 1 to Registration Statement No. 333-25733, filed via EDGAR March 2, 1998.

2	Plan of acquisition, reorganization, arrangement, liquidation or succession	Not applicable

3	Articles of incorporation and by-laws incorporated by reference to Post-Effective Amendment No. 6 to Registration Statement No. 33-87010, filed via EDGAR March 2, 1998.

4	Instruments defining the rights of security holders, including indentures, incorporated by reference to Post-Effective Amendment No. 3 to Registration Statement No. 33-87010, filed via EDGAR April 25, 1996.

5	Opinion re legality	(included as Exhibit 23b)

6 - 9		Not applicable


10	Material contracts (Investment Management Agreement):

	(a) Agreement with Alliance Capital Management L.P. incorporated by reference to Post-Effective No. 3 to Registration Statement No. 33-53507, filed via EDGAR April 26, 2002.

	(b) Agreement with Blackrock Financial Management, Inc. incorporated by reference to Post-Effective No. 3 to Registration Statement No. 33-53507, filed via EDGAR April 26, 2002.

11 - 22		Not applicable

23a	Consent of PricewaterhouseCoopers LLP	FILED HEREWITH

23b	Opinion & Consent of Counsel	Filed via EDGAR with Post Effective Amendment No. 5 to this Registration Statement filed April 20, 2004.

24	Powers of Attorney for Directors James J. Avery, Helen M. Galt, Ronald P. Joelson, Andrew J. Mako, C. Edward Chaplin and Bernard J. Jacob, David R. Odenath, Chief Executive Officer, President and Director, and Michael Bohm, Executive Vice President and Chief Financial Officer filed with Post-Effective Amendment No. 11 to Registration Statement No. 333-24989.

25 - 28		Not applicable


AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Depositor

By:		/S/ LAURA KEALEY
		Laura Kealey, Vice President, Corporate Counsel


Signature	Title	Date
	(Principal Executive Officer)

DAVID R. ODENATH* David R. Odenath	Chief Executive Officer and President	April 21, 2006

(Principal Financial Officer and Principal Accounting Officer)

MICHAEL BOHM* Michael Bohm	Executive Vice President and Chief Financial Officer	April 21, 2006

	(Board of Directors)

JAMES AVERY* James Avery		HELEN GALT* Helen Galt

RONALD JOELSON* Ronald Joelson	DAVID R. ODENATH* David R. Odenath	ANDREW J. MAKO* Andrew J. Mako

C. EDWARD CHAPLIN* C. Edward Chaplin	BERNARD J. JACOB* Bernard J. Jacob



*By		/S/ LAURA KEALEY
		Laura Kealey

		*Executed by Laura Kealey on behalf of those indicated pursuant to Power of Attorney


Exhibit 23a		Consent of PricewaterhouseCoopers LLP		FILED HEREWITH