Jackson(SM) First-Half Profits Up 39%; Retail Sales Up 26%

"We have worked hard to position Jackson for consistent,profitable growth in the US retirement planning market and theseresults demonstrate that our efforts have been successful," said ClarkManning, Jackson's president and chief executive officer. "We areproviding our advisers with the flexible products, wholesaling supportand service offerings they need to both grow their businesses and helptheir clients plan for a comfortable retirement."

Jackson, an indirect wholly owned subsidiary of the UnitedKingdom's Prudential plc (NYSE: PUK), grew retail sales in its corelife and annuity product lines by 26 percent over the first half of2005 to nearly $4.5 billion. The increase in retail sales was drivenprimarily by record variable annuity (VA) sales of nearly $3.4billion, up 52 percent over the same period in 2005. Second quarter2006 marked Jackson's seventh consecutive quarter of rising VA sales,with sales of more than $1.8 billion. Jackson's share of the VA marketwas 4.2 percent in first quarter 2006, up from 3.3 percent in firstquarter 2005. In the independent broker-dealer channel, Jackson'smarket share of VA sales increased to 10.4 percent in first quarter2006, up from 8.1 percent in first quarter 2005 and 5.4 percent at thesame point in 2004.(2)

Jackson's growth continues to be driven by its relationship-baseddistribution model and innovative, flexible and customer-friendlyproducts. During the first half of 2006, 79 percent of the company'sretail sales were from products and product features launched sincethe beginning of 2005. In January 2006, Jackson added a 5-percentannual benefit increase option to its popular lifetime guaranteedminimum withdrawal benefits (GMWBs), LifeGuard 4(SM) and LifeGuard5(SM).(3)

In February, the company launched two new fixed index annuity(FIA) contracts - Elite Choice and Elite Choice Rewards - whichexpanded the number of FIA products Jackson offers to five. In May,Jackson added to its VA products five guaranteed minimum withdrawalbenefit options that provide contract holders with a guaranteed returnof premium and lifetime income, including two options that offercontinuation of benefits for joint survivors. Additionally, Jacksonexpanded its VA investment options during the first half of the year.

"We work collaboratively with our distribution partners to uncovernew trends and opportunities in the retirement planning market," saidClifford Jack, executive vice president and chief distribution officerfor Jackson. "Our efficient product development process then allows usto quickly manufacture new products and features that meet theevolving needs of our customers."

Jackson's fixed annuity sales were nearly $560 million infirst-half 2006, compared to nearly $768 million in first-half 2005.Second quarter 2006 fixed annuity sales increased 15 percent overfirst quarter 2006, as gently rising long-term rates allowed Jacksonto modestly increase its fixed annuity crediting rates. Sales ofJackson's fixed index annuities (FIAs) totaled nearly $524 millionduring the first half of the year, versus nearly $555 million infirst-half 2005. Jackson's FIA sales in second-quarter 2006 increased26 percent over first-quarter 2006.

Life insurance sales of more than $22 million during the firsthalf of 2006 were 2 percent higher than the same period last year.Sales of Jackson's institutional products, a market in which thecompany participates on an opportunistic basis, fell 23 percent tonearly $1.2 billion.

Jackson subsidiary Curian Capital, a registered investmentadviser, attracted nearly $421 million in deposits during first-half2006, an increase of nearly 4 percent from the prior year. As of June30, 2006, Curian had amassed $1.98 billion in assets under management,compared to $1.35 billion at the same time last year.

Jackson's US affiliate, National Planning Holdings(R), Inc., (NPH)a network of four independent broker-dealers, delivered an exceptionalperformance during the first half of 2006. Year over year, NPHincreased sales by 27 percent to nearly $6.1 billion, GAAP revenues bymore than 21 percent to $251 million, and GAAP pre-tax income bynearly 41 percent to $6 million. The network also expanded itsrepresentative base to 2,660, up nearly 10 percent from the same timelast year.

"Jackson's future success will depend on our ability to continueto develop innovative products, respond to changes in the retirementplanning market and provide strong marketing and sales support,"Manning said. "At Jackson, we are committed to continually increasingthe value we offer advisers and their clients."

(1) Jackson had $70.7 billion in total GAAP assets and $63.1 billion in GAAP policy liabilities set aside to pay primarily future policyowner benefits (as of 6/30/06).

(2) Source: The Variable Annuity Research & Data Service (VARDS(R)), a unit of Morningstar, Inc.

(3) These are optional benefits available for an additional charge and limitations and restrictions apply. If all withdrawals taken in a contract year are greater than the Guaranteed Annual Withdrawal Amount (GAWA), or the minimum required distribution for that contract only on certain contracts utilizing LifeGuard 5, the lifetime guarantee is null and void. Withdrawals in excess of GAWA also reduce the LifeGuard benefit. If elected at issue, this means you may not receive your original investment back.

Before investing in variable products, investors should carefullyconsider the investment objectives, risks, charges and expenses of thevariable product and its underlying investment options. The currentcontract prospectus and underlying fund prospectuses, which arecontained in the same document, provide this and other importantinformation. Please contact your representative or the Company toobtain the prospectuses. Please read the prospectuses carefully beforeinvesting or sending money.

About Jackson National Life Insurance Company

With more than $70 billion in assets (GAAP)(1), Jackson NationalLife Insurance Company (Jackson) is an industry leader in variable,fixed and fixed index annuities. The company also sells life insuranceand institutional products. Jackson markets its products in 49 statesand the District of Columbia through independent and regionalbroker-dealers, financial institutions and independent insuranceagents. Jackson's subsidiary, Jackson National Life Insurance Companyof New York(R), similarly markets products in the state of New York.Through its affiliates and subsidiaries, Jackson also provides assetmanagement and retail brokerage services. For more information, visitwww.jnl.com.

Annuities and life insurance products are issued by JacksonNational Life Insurance Company (Home Office: Lansing, Michigan).Variable products are distributed by Jackson National LifeDistributors LLC. May not be available in all states and statevariations may apply. These contracts have limitations andrestrictions, including possible withdrawal charges, recapture chargesand excess interest adjustments. Contact your representative or theCompany for more information.

Variable annuities involve investment risks and may lose value.The long-term advantage of the benefit options will vary with theperformance of the variable investment options you select and thelength of time you own your annuity. Under certain market conditions,the cost of the options may exceed the actual benefit. All guaranteesare backed by the claims-paying ability of Jackson National LifeInsurance Company and do not apply to the principal amount orinvestment performance of the separate account or its underlyinginvestments. The value of the variable annuity fluctuates with that ofthe underlying portfolios. Please remember that a JNL variable annuityis intended to be a long-term, tax-deferred investment vehicle forretirement. An annuity's earnings are taxable as ordinary income whenwithdrawn and, if taken before age 59 1/2, may be subject to a 10%federal tax penalty.

Fixed index annuities are issued by Jackson National LifeInsurance Company, Home Office: Lansing, Michigan and distributed byJackson National Life Distributors LLC. Not available in all statesand state variations may apply. These products are fixed annuitiesthat do not participate in any stock or equity investments.Limitations and restrictions apply, including possible withdrawalcharges. During the withdrawal charge period, the annuity's cash valuemay be less than the principal allocation. For costs and completedetails, contact your representative of the Company. Fixed indexannuities may not be suitable for everyone. Contact yourrepresentative to help determine if a JNL fixed index annuity is rightfor your situation.

Jackson National Life Insurance Company is an indirect subsidiaryof Prudential plc, a company incorporated and with its principal placeof business in the United Kingdom. Prudential plc and its affiliatedcompanies constitute one of the world's leading financial servicegroups. It provides insurance and financial services directly andthrough its subsidiaries and affiliates throughout the world. It hasbeen in existence for over 150 years and has more than $400 billion inassets under management as of December 31, 2005. Prudential plc is notaffiliated in any manner with Prudential Financial, Inc., a companywhose principal place of business is in the United States of America.

The following cautionary statement is included to make applicableand take advantage of the safe harbor provisions of the PrivateSecurities Litigation Reform Act of 1995 for any forward-lookingstatements made by, or on behalf of, the Company. Forward-lookingstatements include statements concerning plans, objectives, goals,strategies, future events or performance, and underlying assumptionsand other statements which are other than statements of historicalfacts. However, as with any projection or forecast, forward-lookingstatements are inherently susceptible to a number of risks anduncertainties and actual results and events could differ materiallyfrom those currently being anticipated as reflected in suchforward-looking statements. There can be no assurance thatmanagement's expectations, beliefs or projections will result or beachieved or accomplished.