Fidelity Investments® Announces Reduced Pricing for Fidelity Personal Retirement Annuity®

New Tiered Pricing One of the Lowest in the Deferred Variable Annuity Industry

BOSTON--(BUSINESS WIRE)-- Fidelity Investments^®, one of the world's largest providers of financial services and retirement solutions, announced today reduced pricing for its Fidelity Personal Retirement Annuity^®i . The new pricing makes Fidelity’s product one of the lowest cost deferred variable annuities in the industry, and unlike most variable annuities, it is sold without a sales charge or a surrender period. (Note: The product does not have a guaranteed minimum death benefit.)

The Fidelity Personal Retirement Annuity is a low cost tax-efficient¹ retirement savings product. It offers a broad selection of funds which have the potential to grow tax-deferred until withdrawn, and can complement other retirement savings in 401(k)s and IRAs.

"Many of our customers are limited in access or the amount they can contribute to tax-deferred savings vehicles like 401(k)s and IRAs,” said Jeffrey K. Cimini, president of Fidelity Investments Life Insurance Company. “The Fidelity Personal Retirement Annuity provides them with an additional option to save in a tax-efficient way."

The new pricing includes the immediate lowering of the annual annuity charge for all existing and new contracts to 25 bps, down from 35 bps. Additionally, the firm has introduced a new pricing tier. New contracts with an initial purchase payment of $1 million or more will qualify for a further reduced annual annuity charge of 10 bps. At either pricing tier, the fees are among the lowest deferred variable annuity costs in the industryⁱⁱ. For example, customers will now pay no more than $250 in annual annuity fees on a contract of $100,000 versus $1,390 for the average deferred variable annuity (underlying fund fees also apply).

Desire for Tax-Efficiency Driving Sales

Fidelity customers are increasingly investing in value-focused variable annuities to meet their retirement needs, and these products have seen significant growth in the past year. Overall variable annuity sales at Fidelity grew more than 100 percent for the six months ending June 30, 2010. The Fidelity Personal Retirement Annuity experienced even stronger results during the same time period, with an increase of more than 200 percent year-over-year.

New Fidelity^® researchⁱⁱⁱ of customers who purchased the Fidelity Personal Retirement Annuity in the past year, shows tax efficiency is the leading factor in their purchase decision-making process. When asked about their top reasons for buying a deferred variable annuity in general, more than eight in 10 respondents (84 percent) cited tax deferral as a leading reason for their purchase, with nearly six in 10 (57 percent) saying it was the single most important factor in their decision. Other contributing factors included flexible withdrawal options (44 percent) and the absence of mandatory withdrawals (35 percent).

“The impact of recent economic events and the continuing uncertainty around taxes have raised investors’ interest in tax-sensitive retirement investment strategies,” said Cimini. “As a result, many investors are turning to Fidelity for guidance around retirement planning strategies to both save more tax-deferred assets for retirement and to achieve greater overall tax-efficiency in their portfolios. With its opportunity for tax-deferred growth, low cost, and inclusion of many highly rated fund options the Fidelity Personal Retirement Annuity can be a beneficial addition to their overall retirement savings plan.”

Fidelity Offers Guidance on Annuity Investing

Fidelity’s financial representatives have been trained to help investors look for ways to help increase the tax efficiency of their portfolio and determine if an annuity is right for them. In a new Fidelity Viewpoint released today, investors can learn more about deferred variable annuities, how they can help meet their retirement savings needs, and how to determine if a deferred variable annuity may be a good fit for their portfolio (www.fidelity.com/five-tax-questions).

In addition, a new educational video about how the Fidelity Personal Retirement Annuity can help investors take advantage of tax-deferral options and apply strategies to help maximize their portfolio’s after-tax returns is also available at www.fidelity.com/fpra. These new resources will be added to Fidelity’s existing suite of annuity guidance tools and resources available at www.fidelity.com/annuities.

For additional guidance on annuity investing and more information about the Fidelity Personal Retirement Annuity, investors can call 800-544-2442 or stop by one of Fidelity’s more than 141 investor centers across the United States. Advisors can also call 877-380-0026 to speak directly with a representative.

About the Fidelity Personal Retirement Annuity

Launched in 2005, the Fidelity Personal Retirement Annuity offers investors more than 50 investment options, including many 4- and 5-star Morningstar-rated funds^iv and single fund solutions. It is sold directly to the consumer and, unlike many other annuities, contains no surrender charges. Because the product is directly sold with no loadⁱⁱⁱ, it can also fit well in a fee-based advisor sales model. Additional product benefits include:

• Tax deferred growth potential

• No IRS contribution limits

• Flexible withdrawal options²

• No mandatory withdrawals at age 70½

• Automatic rebalancing and dollar cost averaging³

About Fidelity Investments & Fidelity Investments Life Insurance Company (FILI)

Fidelity Investments is one of the world's largest providers of financial services, with assets under administration of $3.3 trillion, including managed assets of nearly $1.5 trillion, as of July 31, 2010. Founded in 1946, the firm is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing and many other financial products and services to more than 20 million individuals and institutions, as well as through 5,000 financial intermediary firms. For more information about Fidelity Investments, visit www.fidelity.com.

Established in 1987, Fidelity Investments Life Insurance Company (FILI), and for New York residents, Empire Fidelity Investments Life Insurance Company^®, New York, N.Y., develop and market their own insurance products, in addition to offering access to a number of insurance products from other from well-known carriers.^v

The tax information contained herein is general in nature, is provided for informational purposes only, and should not be construed as legal or tax advice. Fidelity does not provide legal or tax advice. Fidelity cannot guarantee that such information is accurate, complete, or timely. Always consult an attorney or tax professional regarding your specific legal or tax situation.

Before investing, consider the investment objectives, risks, charges and expenses of the variable annuity and its investment options.Call or write to Fidelity or visit Fidelity.com for a free prospectus and, if available, summary prospectus containing this information.Read it carefully.

Principal value and investment returns of a variable annuity will fluctuate and you may have a gain or loss when money is withdrawn.

Fidelity Brokerage Services LLC, Member NYSE, SIPC, and/or Fidelity Insurance Agency, Inc. are the distributors.

Fidelity, Fidelity Investments, Empire Fidelity Investments Life Insurance Company, Fidelity Personal Retirement Annuity and the Pyramid Design logo are registered service marks of FMR LLC.

Fidelity Brokerage Services LLC, Member NYSE, SIPC
900 Salem Street, Smithfield, RI 02917

560205

© 2010 FMR LLC. All rights reserved.

¹ Withdrawals of taxable amounts from an annuity are subject to ordinary income tax, and, if taken before age 59½, may be subject to a 10% IRS penalty.
Fidelity annuities are issued by Fidelity Investments Life Insurance Company (FILI), and in New York, by Empire Fidelity Investments Life Insurance Company, ® New York, N.Y. FILI is licensed in all states except New York.Some annuities are issued by third party insurance carriers.The contract's financial guarantees are solely the responsibility of the issuing insurance company.

² Withdrawals of taxable amounts from an annuity are subject to ordinary income tax, and, if taken before age 59 ½ , may be subject to a 10% IRS penalty.

³ Periodic Investing does not ensure a profit or protect against a loss in a declining market.

ⁱ Fidelity Personal Retirement Annuity (Policy Form No. DVA-2005, et al.) is issued by Fidelity Investments Life Insurance Company (FILI) and, for New York residents, Personal Retirement Annuity (Policy Form No. EDVA-2005, et al.) is issued by Empire Fidelity Investments Life Insurance Company,® New York, N.Y. FILI is licensed in all states except New York. The contract’s financial guarantees are solely the responsibility of the issuing insurance company. Fidelity Brokerage Services, Member NYSE, SIPC, and Fidelity Insurance Agency, Inc. are the distributors.

ⁱⁱ According to Morningstar, Inc., Fidelity Personal Retirement Annuity's annual annuity charge of 0.25% is among the lowest 1% compared to the industry average of 1.39% for non-group open variable annuity contracts as of 12/31/09. Contracts purchased with an initial purchase payment of $1 million or more will qualify for a reduced annual annuity charge of 0.10% (the initial purchase payment is the amount applied to the contract on the contract date). Underlying fund fees also apply.

ⁱⁱⁱ Fidelity's FPRA customer study was conducted online among 376 investors who recently purchased a Fidelity Personal Retirement Annuity between August 20 - 29, 2010 by DataStar, Inc., an independent research firm.

^iv Morningstar ratings are based on a fund's risk-adjusted returns. The top 10% of funds in each broad asset class receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. Past performance is no guarantee of future results.

^vFidelity Brokerage Services LLC, Member NYSE, SIPC, and/or Fidelity Insurance Agency, Inc., distribute fixed and variable insurance products issued by Fidelity Investment Life Insurance Company, Empire Fidelity Investments Life Insurance Company, New York, NY, and certain third party insurance companies, which are not affiliated with Fidelity Investments.

Fidelity Corporate Communications
617-563-5800

Source: Fidelity Investments