Transamerica Introduces Principium II Variable Annuity

Business Editors

DENVER--(BUSINESS WIRE)--August 18, 2008--Transamerica Life Insurance Company (Transamerica) today introduced its newest variable annuity, Transamerica Principium II, which offers lower costs and a new pair of ETF-based subaccount choices. Principium II also includes the same benefits and features available with the majority of Transamerica’s variable annuity suite, with limited investment options.

“Principium II is a highly cost-efficient product that can address a variety of client retirement needs with no reduction of solution value,” said Dave Paulsen, executive vice president, national sales manager at Transamerica Capital, Inc. “Overall investment cost and regulatory challenges are key issues in today’s market environment, and this new solution directly addresses these concerns. The cost-effective base annuity and the competitively-priced subaccount choices combine for an extremely attractive option.”

Principium II and other Transamerica variable annuities also offer the Retirement Income Choice living benefit rider for an added fee. This optional rider offers multiple features that can provide guaranteed withdrawals in various retirement situations.

The new subaccount choices available with Principium II are Transamerica Index 50 VP and Transamerica Index 75 VP. With a competitive expense ratio of 0.73%, the subaccounts offer a distinct advantage over the average mixed-asset target growth portfolio. 1 AEGON USA Investment Management, LLC,manages the subaccounts, which are available with all new Transamerica variable annuity policies.

Both the Transamerica Index 50 VP and the Transamerica Index 75 VP allocate assets in underlying exchange traded funds (ETF) from Vanguard. ETFs – similar to mutual funds but traded like stocks on major exchanges – track a benchmark, are typically very inexpensive, and offer a wide range of investment choices. Transamerica selected Vanguard as the portfolios’ ETF provider because of their index management expertise and history of keeping investor costs low.

Variable annuities are long-term financial vehicles designed for retirement purposes and contain underlying investment portfolios that are subject to market fluctuation, investment risk and possible loss of principal.

Financial professionals interested in learning more about Principium II, Transamerica Index 50 VP, Transamerica Index 75 VP, or Retirement Income Choice should contact the Transamerica sales desk at 1-800-851-7555. Investors interested in learning more should contact the customer care group at 1-800-525-6205.

Transamerica Principium II fees and charges include 0.85%–1.65% M&E&A, 0%–5% surrender charges, $30–$35 annual fee, and subaccount fees. Retirement Income Choice initial fees range from 0.60%–1.40% annually, depending on options chosen. Investment options are limited with this rider.

Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 59½, a 10% federal tax penalty may apply.

Please consider variable annuity investment objectives, risks, charges, and expenses carefully before investing. The contract and underlying fund prospectus contain this and other information about the annuity. Please call 1-800-525-6205 to obtain a prospectus and read it carefully before investing.

Guarantees are based on the claims-paying ability of the issuing insurance company.

1 Derived from data provided by Lipper, Inc. as of December 31, 2007.

Some ETFs are more thinly traded than others, which could make it difficult to sell at the price you want, especially in a market downturn, or to sell short if that's what you are trying to do. ETFs often, though not always, feature expense ratios even lower than those of comparable mutual funds. That is because ETF investors place transactions through a brokerage firm, so while they will need to pay any applicable brokerage commissions, the ETFs do not incur the administrative costs that mutual funds do for such things as correspondence, customer service, and account recordkeeping.

Transamerica Financial Life Insurance Company is authorized to conduct business in New York. Transamerica Life Insurance Company is authorized to conduct business in all states except New York.

Annuities issued by:
Transamerica Life Insurance Company Cedar Rapids, IA
Transamerica Financial Life Insurance Company Purchase, NY
Underwritten and distributed by: Transamerica Capital, Inc.

About Transamerica

Transamerica companies offer a wide array of innovative financial services and products with a common purpose. Regardless of the distribution method, Transamerica’s mission is to help individuals, families, and businesses build, protect, and preserve their hard-earned assets. With more than a century of experience, we have built our reputation on solid management, sound decisions, and consumer confidence.

The Transamerica companies are members of the AEGON group, a multinational insurance organization headquartered in The Hague, The Netherlands. AEGON is one of the world’s leading life insurance and financial services organizations.

About Transamerica Capital, Inc.

Transamerica Capital is the underwriting and wholesaling broker/dealer for Transamerica Life Insurance Company variable annuities. The company works with financial professionals at wirehouse, regional, independent, and bank firms to provide a variety of insurance and investment solutions.

About Transamerica Life Insurance Company

Transamerica Life Insurance Company provides retirement solutions for financial professionals and their clients, including variable and fixed annuities, and universal life insurance. The company consistently earns high marks for financial strength from the nation's leading independent agencies that rate insurance companies. For current ratings, please visit www.talife.com. In New York, visit www.tafinlife.com.

About AEGON

AEGON is one of the world's leading life insurance and pension companies, and a strong provider of investment products. AEGON empowers local business units to identify and provide products and services that meet the evolving needs of customers, using distribution channels best suited to local markets. AEGON takes pride in balancing a local approach with the power of an expanding global operation.

With headquarters in The Hague, the Netherlands, AEGON companies employ approximately 30,000 people worldwide. AEGON's businesses serve millions of customers in over twenty markets throughout the Americas, Europe, and Asia, with major operations in the United States, the Netherlands and the United Kingdom.

Respect, quality, transparency, and trust constitute AEGON's core values as the company continually strives to meet the expectations of customers, shareholders, employees and business partners. AEGON is driven to deliver new thinking with the ambition to be the best in the industry.

About AEGON USA Investment Management, LLC

AEGON USA Investment Management, LLC (AUIM) oversees the asset management for all non-real estate assets within AEGON Global Institutional Markets (AGIM), and will also provide AGIM with cash management services, as required. In this role, AUIM will also utilize the global asset management skills available through AEGON affiliates in Europe.

All policies, forms, and riders may vary by state, and may not be available in all states. AV1025 101 178903, AV1029 101 178 903, Oregon AV1389 101 178 903, AV1343 101 178 903, RGMB 27 0108, RGMB29 0108, RGMB 27 0108 (IS)(FL), RGMB 29 0108 (IS)(FL), other versions also available, RGMB 27 0108(IS)(OR), RGMB 27 0108 (IJ)(OR), RGMB 27 0108 (AS)(OR), RGMB 27 0108 (AJ)(OR), RGMB 29 0108(IS)(OR), RGMB 29 0108 (IJ)(OR), RGMB 29 0108 (AS)(OR), RGMB 29 0108 (AJ)(OR), RGMB 27 0108 (IS)(NY), RGMB 27 0108 (AS)(NY)

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