U.S. Conference of Mayors Announces PEBSCO Merger Will Deliver Enhanced Service to Cities; Nationwide Retirement Solutions Created January 25, 1999 Nationwide Financial Services announced earlier this month that it plans to merge member companies PEBSCO and NEAVIS into one company, and enhance its retirement services to better serve clients and expand into new markets. The new company, Nationwide Retirement Solutions, will provide employer-sponsored, retirement savings plans to the public sector, non-profit, and education markets. Previously, PEBSCO and NEAVIS were independently managed and operated members of Nationwide Insurance Enterprise. The new name, Nationwide Retirement Solutions, reflects the company's ability to provide customized solutions for employees' complete retirement savings needs, and unbundled services for employers who provide its programs. Public Sector Focus Nationwide Retirement Solutions' new organization and expanded services are part of an effort to help public sector employees increase their retirement savings. According to research by NFO Research, Inc. for Nationwide Retirement Solutions, 61% of public employees who are eligible participate in their employer's supplemental retirement savings plan, compared with 74% of private sector employees. At the same time, more public sector employees are relying on their employer's pension plan and supplemental savings plan for retirement, while private sector employees are relying on their personal investments, such as mutual funds and IRAs. "Research shows that public sector employees do not take advantage of employer-sponsored offers in at the same rate as private sector workers, yet they are relying on employer-sponsored plans for retirement," said Duane Meek, president, Nationwide Retirement Solutions. "We are enhancing public employees' options in an effort to encourage them to participate and save more." Expanded Products and Services Nationwide Retirement Solutions is expanding its deferred compensation products and services to provide customized solutions for public employers with more than $100 million in assets. The company now will offer "unbundled" services, allowing clients to customize a deferred compensation program by selecting Nationwide Retirement Solutions for investment products, plan administration, or marketing and education. Clients can select Nationwide Retirement Solutions to provide one or all components of their deferred compensation programs. "We've always been a full service provider, but we realize that many larger employers want an unbundled approach," said Meek. "The new structure allows us to remain full service for those clients who want full service. This is important to us because PEBSCO built its reputation on its strong, in-field customer service. This service focus will not change." Additionally, to help Nationwide Retirement Solutions serve the "large case" employer market, Nationwide Financial Services recently acquired Morley Capital Management and National Deferred Compensation, enabling the company to diversify fund offerings and expand large-case administration capabilities. Along with expanded services, Nationwide Retirement Solutions is introducing two, new, enhanced deferred compensation products. The new products, the Select Spectrum Series and the Prestige Advisor Series, offer more investment choices at a lower fee to the participant. Lower fees enable more of participants' dollars to work for them so they can earn more money for retirement. Select Spectrum Series offers 20 variable investment funds offered through Nationwide Life Insurance. The funds cover all investment classes, and enable "hands-on" investing and flexibility in transfer of funds. The Prestige Advisor Series offers plan participants access to institutionally-managed funds available only through Nationwide Retirement Solutions. Nationwide Retirement Solutions is a subsidiary of Nationwide Financial Services, Inc., the holding company for retirement savings operations of the Nationwide Insurance Enterprise. The Nationwide Insurance Enterprise, based in Columbus, Ohio, is one of the country's largest diversified insurance and financial services organizations and a Fortune 500 company with assets of more than $90 billion. The U.S. Conference of Mayors currently offers as part of its total financial package a host of products such as: 457 Deferred Compensation Plans -- offering a solution to retirement income needs by providing supplemental income. Plan participants enjoy tax-deferred growth of their money with no current federal income tax so that money can grow and compound faster. This is the core business of NRS serving more than 4,000 city jurisdictions and over 275,000 participants. Deferred Compensation Match Program -- a plan similar to a 401(k) plan providing employees with the incentive to contribute to their 457 plans with the added benefit of matching contributions from the employer. This plan, 401(a), also offers cities a flexible, inexpensive, and innovative alternative to a defined benefit plan. 401(a) Defined Contribution Plan -- which permits contributions from employers, sometimes employees, or both. This plan allows employers the predictability of costs and a less expensive alternative to many traditional pension programs. Post Employment Health Plans (PEHP) -- offering a unique and innovative solution for public empoyees health care by providing a financial incentive for employers to pre-fund their employees' post employment medical insurance premiums and future health care expenses that may reduce unfunded liabilities of the city. Enhanced Financial Services -- which provides financial solutions for life events... not just post-retirement needs. These services include option of investin in mutual funds, PortfolioSelectSM, variable anuities like The Best of America¨, or life insurance.

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