Allstate Announces Annuity Linked to Treasury Rate

Patent pending on innovative product that provides safety, stability and predictability within today’s volatile marketplace

Northbrook, IL, April 1, 2002 — Recognizing that recent historically low-interest rates and a volatile stock market have left many consumers cautious about investing, The Allstate Corporation introduces the AllstateР’В® Treasury-Linked Annuity, the first flexible premium deferred fixed annuity that provides a guaranteed five-year rate plus the unique ability to earn additional interest based upon the performance of the five-year U.S. Treasury rate. The first of its kind, Allstate has applied for a patent on the AllstateР’В® Treasury-Linked Annuity. The new AllstateР’В® Treasury-Linked Annuity provides security, predictability and flexibility to investors with the potential to earn interest beyond the guaranteed rate.

“As the Baby Boomer generation nears retirement, many are looking for longer-term investments that will offer a balance of security and growth potential,” said Tom Wilson, president of Allstate Financial. “The AllstateР’В® Treasury-Linked Annuity is the only product that provides individuals the combination of traditional annuity benefits with the possibility of earning additional interest based on the upside performance of the five-year U.S. Treasury rate.”

Created in response to consumer concerns about locking money into investments with low-interest rates, the AllstateР’В® Treasury-Linked Annuity provides middle-income Americans with an innovative fixed rate investment solution, plus traditional annuity benefits such as tax deferral, income for life and death benefits for a beneficiary. In addition, the product offers benefits including:

– Higher interest rates for purchase payments of $20,000 or more

– No upfront or annual charges or fees

And, while some annuities only permit a one-time purchase payment, the AllstateР’В® Treasury-Linked Annuity also enables investors to make additional payments of $100 or more at any time.

“Although annuities are typically purchased for retirement purposes, there are instances when individuals need to access money earlier,” said Wilson. “The AllstateР’В® Treasury-Linked Annuity allows investors to withdraw 10% of account value free of withdrawal charges each year. And, in the event of extreme cases such as a terminal illness, confinement in a nursing home or loss of a job, the individual can withdraw the entire amount without surrender charges.”

At the end of the first five-year period, a new underlying rate is set based on current market conditions. At that time, individuals have a 45-day window to continue earning interest on the investment or to withdraw their money without surrender charges.

The AllstateР’В® Treasury-Linked Annuity will be offered exclusively through financial professionals at Glenbrook Life and Annuity Company, Lincoln Benefit Life Company and Allstate Life Insurance Company.

Allstate Financial Group is a business unit of The Allstate Corporation (NYSE: ALL), representing the affiliates that provide life insurance, retirement, investment and health and disability insurance products. Allstate Financial is the marketing name for Allstate Life Insurance Company, its subsidiaries and certain affiliates. Widely known through the “You’re In Good Hands With AllstateР’В®” slogan, Allstate Financial can help its customers achieve a secure financial future with a broad array of retirement solutions. Allstate Financial is also a premier provider of mutual funds, annuities, both fixed and variable, as well as long-term care insurance. In addition, the Allstate Workplace Division of Allstate Financial offers life, health and disability insurance through employee payroll deductions. Customers can access Allstate Financial products and services through thousands of financial professionals, including Allstate agents, independent agents, and representatives of certain banks and securities firms.

FOR MORE INFORMATION:

Laura Margolis

Media Relations

(847) 402-5600