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JennisonDryden is a registered trademark of The Prudential Insurance Company of America.

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Table of Contents

I Prudential Fixed Income Overview

II Why Managed Fixed Income?

III Dryden Municipal Bond Strategies

IV Appendix

Biographies

Disclosures

Prudential Financial is a service mark of The Prudential Insurance Company of America, Newark, NJ and its affiliates


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I

Prudential Fixed Income Overview


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US/Non-US Governments

$20 billion

High Yield$10 billion

Money Markets$21 billion

Municipals$3 billion

Emerging Markets$4 billion

Mortgages$15 billionStructured

Product$11 billion

US/Non-US Corporates$55 billion

Bank Loans<$1 billion

Assets Under Management$139 Billion*� One of the largest fixed

income managers in US**

� Broad coverage of fixed income markets

� Focused sector expertise

� Over 100 investment professionals

Prudential Fixed Income

* As of 9/30/04. Prudential Fixed Income is a unit of Prudential Investment Management, Inc., a registered investment adviser and is one advisor within Prudential Financial's asset management business, known collectively as Prudential Investment Management. Prudential Fixed Income is the primary manager of the assets described on this page. Chart does not include assets in JennisonDryden Managed Accounts (“JDMA”) and fixed income accounts managed by Jennison Associates LLC, and Quantitative Management Associates LLC, both subsidiaries of Prudential Financial. Holdings are subject to change. Asset class breakdown based on company estimates.

** Source: Institutional Investor, July 2004, based on domestic fixed income securities held as of 12/31/03.


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Representative Client List

� Arkansas Public Employees Retirement System

� AT&T� Brick Masons’ Trust Funds� BVP – Pensionskassen

Aktiengesellschaft� Chuo Mitsui Pension Plan� ConocoPhillips Corporation� Doyon, Limited� Erste – Sparinvest/KAG� FedEx Corporation� Florida State Board of Administration� FMC Corporation� Fresno (City of) Retirement Systems� Metal Trades Branch Local #638� NEC Corporation

As of 9/15/04. This is a partial list of Prudential Fixed Income clients who have approved in writing that their relationship with Prudential be disclosed publicly. Names were chosen based on recognition, value and diversity of client type. Some of the clients listed may be invested in styles not available in managed accounts. It is not known whether the clients listed approve or disapprove of the advisory services provided.

� New York City Employees’ Retirement System

� New York City Fire Department Pension Fund

� New York City Police Department Pension Fund

� Pressroom Unions’ Pension Trust Fund� Prudential Financial Pension Plan� Prudential Insurance Company of America

General Account� Rio Tinto America, Inc.� Samsung Life Investment (America) Ltd.� Teamsters Local #301� The Boeing Company� Tredje AP-fonden (AP3)� UFCW Local #1500� U.S. Allianz Investors Service


®

� An integrated investment platform� Senior investment professionals

averaging over 14 years investment experience

� Large and experienced creditresearch staff

� Dedicated risk management and quantitative analytics group

Prudential Fixed Income

Assets as of 9/30/04. Excludes additional public fixed income assets managed by certain other units or affiliates of Prudential Investment Management. Holdings are subject to change. Asset class breakdown based on company estimates.

Credit Sectors

Steven Kellner

Corporate Sector Team

Steven Kellner11 Investment. Professionals

$55 billion

EmergingMarkets

Sector Team

David Bessey5 InvestmentProfessionals

$4 billion

High YieldSector Team

Paul Appleby7 InvestmentProfessionals

$10 billion

LeveragedBank Loan

Team

Ross Smead3 InvestmentProfessionals

<$1 billion

Structured Product

Richard Rogers

Structured Product Team

Richard Rogers10 InvestmentProfessionals

$11 billion

Non USSector Team

Michael Goosay4 InvestmentProfessionals

<$1 billion

MunicipalsSector Team

Robert TippDennis Hepworth

4 InvestmentProfessionals

$3 billion

Money Markets

Joseph Tully8 InvestmentProfessionals

$21 billion

Investment Strategy andGlobal Liquidity Sectors

Robert Tipp

US GovtSector Team

Peter Cordrey4 InvestmentProfessionals

$19 billion

MortgagesSector Team

Peter Cordrey5 InvestmentProfessionals

$15 billion

US Liquidity Sectors

Peter Cordrey

Quantitative Research and Risk Management

Michael Lillard55 Professionals

Fundamental Research

Credit: Richard Greenwood37 Professionals

Structured Product: Richard Rogers7 Professionals

Senior Managing DirectorHead of Fixed Income

James Sullivan$139 Billion**

DirectorInstitutional Client Relations

Fixed IncomeKevin Myers

Senior Investment OfficerInsurance Portfolios

Michael Lillard

Senior Investment OfficerInstitutional andRetail Portfolio

Arthur MacBride

DirectorRetail Products

Glen Baptist


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II

Why Managed Fixed Income?


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Think About Bonds Like Stocks

Source: Bloomberg. Neither the information nor any opinion expressed shall constitute an offer to sell or a solicitation of an offer to buy any securities mentioned herein.

This hypothetical illustration is for informational purposes only. Stocks represent ownership in a corporation, while government bonds and U.S. Treasury bills are guaranteed by the U.S. Government and, as with all bonds, if held to maturity, offer a fixed rate of return and fixed principal value.

All 3 of these securities exhibit similar volatility and active trading opportunities.

80

85

90

95

100

105

110

115

120

1/0

3

2/0

3

3/0

3

4/0

3

5/0

3

6/0

3

7/0

3

8/0

3

9/0

3

10

/0

3

11

/0

3

12

/0

3

WalMart StockMissouri St. Health Muni Bond30 Year U.S. Treasury BondPr

ice

(Nor

mal

ized

)

� There are more to bonds than just fixed coupons and a set principal payment

� Bond prices fluctuate just like stock prices do. These price fluctuations can create trading opportunities to generate potential returns in actively managed portfolios.


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Yield versus Total Return

-10

-5

0

5

10

15

20

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Perc

ent

Total ReturnYield

� Focus on total return when investing in bonds. Yield is just a component of total return, yet is often the primary focus of investors.

Lehman Municipal Index: Total Return and Yields

Source: Lehman Brothers as of 12/31/03. The Lehman Municipal Index includes municipal issues rated at least BBB with at least $5 million par value outstanding, at least one year until maturity, and were issued after 12/31/90. Past performance is not a guarantee of future results.

Avg. Ann. Return:6.0%

Avg. Yield:4.8%


®

What Factors Drive Performance in Fixed Income?

� Lots of things!

� Different types of bonds are affected by different factors

� Bonds have enough complex characteristics to warrant professional management

Performance Performance DriversDrivers

Convexity

Covenants

Liquidity

GeopoliticsDurationSector

Allocation

Optionality

PrepaymentRisk

CouponSelection

CreditResearch

InterestRates


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The Benefits of Managed Fixed Income Products

� Professional Management� seeks to maximize total return, not just yield� continuous evaluation of portfolio structure

� Diversification � risk can be reduced by holding securities across various sectors and

maturities, and by limiting individual positions

� Market Access and Execution� large market participants have superior market access and offer size-

driven trading advantages not available to retail investors

� Liquidity� investor has immediate access to funds


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III

Dryden Municipal Bond Managed Accounts

Investment Strategy and Process


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Dryden Municipal Bond Portfolio

Investment Objective*� Maximizing after-tax returns from municipal bonds

Investment Approach� Minimum size: $250,000 for national portfolios; $1 million for

single states� Currently offer state portfolios in California, Florida, New Jersey, New

York and Pennsylvania� Benchmark is Lehman Brothers Municipal Bond Index***� Generally duration-neutral positions� Add value through optimal portfolio positioning and structure, and

comprehensive research* There can be no guarantee that the objective will be realized.** Income is generally free from federal taxes and state taxes for residents of the issuing state. While the interest income is tax-free, capital gains, if any, will be subject to taxes. Income for some investors may be subject to the federal Alternative Minimum Tax (AMT).

*** Lehman Brothers Municipal Bond Index, is a broad-based total return index comprising investment grade, fixed-rate, and tax-exempt issues, with a remaining maturity of at least one year, including state and local general obligation, revenue, insured, and pre-refunded bonds that are selected from issues larger than $50 million dated since January 1984. The returns of the index are shown for comparative purposes. When comparing the investment returns of the manager to the index, you should know the manager does not necessarily hold the same securities that comprise the index, the index may not reflect the asset allocation and portfolio characteristics of accounts managed by the manager and that the index is unmanaged.

CURRENTLY AVAILABLE IN JDMA


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Dryden Municipal Bond Portfolios� NOT Model Driven – Focus on targeted risk/return profiles

� Portfolios hold 7 to 10 bonds (depending on account size)

� New accounts invested over 3-4 weeks

Representative Portfolio Characteristics(as of September 30, 2004)

Since accounts are individually managed,the characteristics of any one individually-managed portfolio will likely vary from the representative portfolio. Credit quality ratings are assigned by Moody’s. Bonds rated Aaa hold the highest quality; bonds rated Aa1 to Aa3 are high quality with slight risk; bonds rated A1 to A3 are high quality with more variable risk; bonds rated Baa1 to Baa3 have below average protection, but are still considered investment grade; bonds rated below Baa3 are considered speculative and non-investment grade. Past performance is not indicative of future results.

DrydenMunicipal

BondPortfolios

Avg Quality Aa1/Aa2

Avg Duration 5.08 years

Avg Yield to Worst 3.47%

Current Yield 4.80%


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0%

1%

2%

3%

4%

5%

6%

1 2 3 4 5 7 10 15 20 25 30

9/30/2004

Source: Bloomberg. "AAA Insured" GO scale.This curve represents the yield available on 9/30/04. This curve can, and is likely to change on a day-to-day basis. Past performance is not indicative of future results.

� A steep yield curve can offer value in longer maturities

� Dryden Muni Bond portfolios are focused in the 13-20 year maturity range, which offers a majority of the yield of 20-30 year bonds, with less interest rate sensitivity.

Yiel

d

Years

DrydenMuni BondPortfolio

Focus

Dryden Municipal Bond Portfolios:Investment Strategy – Yield Curve Position


®Source: Lehman Brothers. Past performance is not a guarantee of future results. Lehman Brothers General Obligation Municipal Bond Index, is a broad-based total return index comprising general obligation tax-exempt issues, with a remaining maturity of at least one year, that are selected from issues larger than $50 million dated since January 1984. Investors cannot directly purchase an index.

111.5110.8109.394.9

85.274.9

62.0

0

20

40

60

80

100

120

140

3 Yr. GO 5 Yr. GO 7 Yr. GO 10 Yr.GO

15 Yr.GO

20 Yr.GO

Long GO

Lehman G.O. Bond IndexCumulative Returns (9/30/94 – 9/30/04)

Cum

ulat

ive

Ret

urns

(%)

AverageDuration 2.65 4.12 5.21 5.82 5.96 6.01 7.25

� The municipal yield curve has always been upward sloping, therefore, over time, longer maturity municipal bonds have outperformed short maturity bonds.

� Our portfolios invest primarily in the intermediate- to long-end of the curve to take advantage of increased return potential. This is foregone by the typical laddered portfolio which does not invest beyond 10 years.

Dryden Municipal Bond Portfolios:Investment Strategy – Yield Curve Position


®Source: Bloomberg as of 12/31/03.

Premium Coupon Callable Bonds Have Historically Offered and Attractive Risk/Return Profile

Example: Connecticut State Special Tax, 1/1/2023 Callable 1/1/2014 @Par

Coupon 4.50% 5.00%

Effective Duration 12.38 years 7.69 years

Price 99.367 105.106

Two Year Total Return Analysis

Change in Rates Prem.-Curr.

+50 bps +3.75% +5.83% +2.08%

0 bps +9.39% +9.01% -0.38%

-50 bps +13.03% +12.32% -0.71%

Annual Income (assuming $100,000 investment)

$4,528 $4,757

Current Coupon

Premium Coupon


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Emphasis on Premium Coupon Callable Securities Dampens Interest Rate Risk

Source: Prudential Investment Management, as of 9/30/04. Holdings are subject to change.

0%

5%

10%

15%

20%

25%

0 2 4 6 8 10 12 14 16 1820-2

4 30

0%

1%

2%

3%

4%

5%

Stated MaturityEffective MaturityMuni Yield Curve

Dryden Municipal Bond Strategy:Maturity Distribution

% o

f Str

ateg

y A

sset

s

Years-to-Maturity

� While the maturity profile of the Dryden Municipal Bond accounts is focused on the 13-20 year sector, the effective maturity is much shorter due to the call structure of the underlying issues.

Mun

icip

al Y

ield

Cur

ve


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Dryden Municipal Bond Portfolios:The Advantage Over Ladders

$500

$520

$540

$560

$580

$600

$620

$640

$660

$680

$700

0 2 4 6

Dryden MuniLadder

Hypothetical Dryden Municipal Account vs. Ladder:Portfolio Value and Cumulative Income

Port

folio

Val

ue ($

000’

s)

Years From Initial Investment

� Laddered portfolios sacrifice income by forgoing the higher coupons available in longer-maturity issues. A longer-term strategy earns higher coupon income as a result of the upward sloping municipal yield curve.

$96,210

$58,630

$26,260

$154,470

$96,820

$48,410

CumulativeIncome

Source: Bloomberg, Prudential Investment Management. As of 12/31/03. This analysis is for illustrative purposes only. This analysis assumes a 10-year laddered portfolio invested in 2, 4, 6, 8 and 10 year current coupon maturities. The Dryden portfolio assumes an initial investment in a hypothetical 15-year premium coupon security, callable in 10-years, with active trading executed as defined by the strategy. Portfolio values assume that coupon income is reinvested.

$654,020

$614,330


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Dryden Municipal Bond Portfolios:The Advantage Over Ladders

$500

$510

$520

$530

$540

$550

$560

$570

$580

$590

$600

0 2 4 6

Dryden MuniLadder

Hypothetical Dryden Municipal Bond Account vs. Ladder:Portfolio Value and Cumulative Income

Port

folio

Val

ue ($

000’

s)

Years From Initial Investment

� The higher income stream and lower implied price volatility of premium coupon callable structures can lead to higher returns versus a laddered portfolio, even through periods of significantly rising interest rates (see illustration below).

� In a stable or falling rate environment, a longer-term portfolio may also provide greater price appreciation due to its longer duration and favorable roll-down characteristics compared to a ladder.

$106,750

$61,150

$26,260

$185,900

$109,640

CumulativeIncome

Source: Bloomberg, Prudential Investment Management. As of 12/31/03. This analysis is for illustrative purposes only. This analysis assumes a 10-year laddered portfolio invested in 2, 4, 6, 8 and 10 year current coupon maturities. The Dryden portfolio assumes an initial investment in a hypothetical 15-year premium coupon security, callable in 10-years, with active trading executed as defined by the strategy. Portfolio values assume that coupon income is reinvested. A parallel yield curve shift of +100 bps over each two year period is assumed for the interest rate scenario.

Interest Rate Scenario: +100 bps every 2 years

$48,410

$591,200$585,890


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Investment Returns (%) for period ending 9/30/2004

Dryden Municipal Bond Portfolios:Performance

3Q04 Y-T-D 1 YR 3 YR 5 YR 10 YR

Dryden Muni Portfolios* 4.23 3.38 5.00 6.13 7.07 6.94

Lehman Bros Muni Index** 3.89 3.19 4.60 5.78 6.77 6.77

Dryden Muni Portfolio (Net) 4.05 2.85 4.28 5.38 6.25 6.14

*Source: Prudential Investments. The investment returns through June 30,2001 represent the historical returns of the Dryden National Municipal Bond Fund, returnsafter June 30, 2001 represents the performance of all discretionary accounts that been managed in the Dryden National Municipal Bond Strategy for at least one full calendar quarter. Returns for periods longer than a year are annualized. Net performance represents the deduction of 1.25% which is the maximum program fee charged within this investment style. Actual fees may vary depending on, among other things, the applicable fee schedule and portfolio size. Keep in mind, there are differences between the management of individual accounts and mutual funds. These differences include the number of holdings and portfolio characteristics, and the ability of clients to impose restrictions. Therefore, the performance of the accounts may vary materially from that of the Fund even though the same investment style is used. Since accounts are individually managed, account portfolio holdings and account performance may vary. Fees are available upon request and may also be found in Part II of PIMS’ form ADV. Since accounts are individually managed, portfolio holdings and account performance may vary. A client’s investment is always at risk. Past performance is no guarantee of future results.

**The Lehman Brothers Municipal Bond Index: is a broad-based total return index comprising investment grade, fixed-rate, and tax-exempt issues, with a remaining maturity of at least one year, including state and local general obligation, revenue, insured, and pre-refunded bonds that are selected from issues larger than $50 million dated since January 1984. Investors cannot directly purchase an index.The returns of the index are shown for comparative purposes. When comparing the investment returns of the manager to the index, you should know the manager does not necessarily hold the same securities that comprise the index, the index may not reflect the asset allocation and portfolio characteristics of accounts managed by the manager and that the index is unmanaged.


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5.33.23.4

5.5

12.510.6

4.8

-2.9

6.1

10.6

3.4

6.59.2

11.79.6

5.1

-2.1

4.42.9

4.8

9.811.3

4.0

-4.2

4.9

9.4

2.2

-10-505

1015202530

1996 1997 1998 1999 2000 2001 2002 2003 2004Y-T-D

Dryden Muni (Gross) Lehman Bros Muni Index**Dryden Muni (Net)

Investment Returns

1996 – 2004

* Performance represents the returns achieved by a National Municipal Mutual Fund managed with the same strategy as that of the Dryden Municipal Bond Portfolios. Investment returns shown here were calculated gross of all fees and expenses, except transaction costs, and net of 0.3125% per quarter, the maximum program fee charged within JennisonDryden Managed Accounts (JDMA) for this asset class. The program fee normally covers all transaction costs not otherwise embedded in the price of the bonds. JDMA accounts are individually managed, and there are differences between the management of individual accounts and mutual funds. These differences include the number of holdings and portfolio characteristics, and the ability of clients to impose restrictions. Therefore the performance of accounts may vary materially from that of the Fund even though the same investment style is used. Past performance is no guarantee of future results.

** Source of Benchmark: Prudential, Lehman Brothers. Lehman Brothers Municipal Bond Index: is a broad-based total return index comprising investment grade, fixed-rate, and tax-exempt issues, with a remaining maturity of at least one year, including state and local general obligation, revenue, insured, and pre-refunded bonds that are selected from issues larger than $50 million dated since January 1984. Investors cannot directly purchase an index.

The returns of the index are shown for comparative purposes. When comparing the investment returns of the manager to the index, you should know the manager does not necessarily hold the same securities that comprise the index, the index may not reflect the asset allocation and portfolio characteristics of accounts managed by the manager and that the index is unmanaged.

Perc

ent

As of 9/30/04.

Dryden Municipal Bond Portfolios:Performance


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Dryden Low-Duration Municipal Bond Portfolio

Investment Objective*� Maximizing after-tax returns from municipal bonds**

Investment Approach� Minimum size: $250,000 for national portfolios; $1 million for

single states� Currently offer state portfolios in California, Florida, New Jersey, New

York and Pennsylvania� Benchmark is Lehman Brothers 3-5 Year Municipal Bond Index***� Generally duration-neutral positions� Add value through optimal portfolio positioning and structure, and

comprehensive research* There can be no guarantee that the objective will be realized.** Income is generally free from federal taxes and state taxes for residents of the issuing state. While the interest income is tax-free, capital gains, if any, will be subject to taxes. Income for some investors may be subject to the federal Alternative Minimum Tax (AMT).

*** Lehman Brothers 3-5 Year Municipal Bond Index is a broad-based total return index comprising investment grade, fixed-rate, and tax-exempt issues, with a remaining maturity from 3 to 5 years, including state and local general obligation, revenue, insured, and pre-refunded bonds that are selected from issues larger than $50 million dated since January 1984. Investors cannot directly purchase an index.The returns of the index are shown for comparative purposes. When comparing the investment returns of the manager to the index, you should know the manager does not necessarily hold the same securities that comprise the index, the index may not reflect the asset allocation and portfolio characteristics of accounts managed by the manager and that the index is unmanaged.

CURRENTLY AVAILABLE IN JDMA


®

Dryden Low Duration Municipal Bond Portfolios� NOT Model Driven – Focus on targeted risk/return profiles

� Portfolios hold 7 to 10 bonds (depending on account size)

� New accounts invested over 3-4 weeks

Representative Portfolio Characteristics(as of September 30, 2004)

Since accounts are individually managed,the characteristics of any one individually-managed portfolio will likely vary from the representative portfolio. Credit quality ratings are assigned by Moody’s. Bonds rated Aaa hold the highest quality; bonds rated Aa1 to Aa3 are high quality with slight risk; bonds rated A1 to A3 are high quality with more variable risk; bonds rated Baa1 to Baa3 have below average protection, but are still considered investment grade; bonds rated below Baa3 are considered speculative and non-investment grade. Past performance is not indicative of future results.

DrydenLow Duration

Municipal BondPortfolios

Avg Quality Aa1/Aa2

Avg Duration 2.54 years

Avg Yield to Worst 2.52%

Current Yield 4.82%


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0%

1%

2%

3%

4%

5%

6%

1 2 3 4 5 7 10 15 20 25 30

9/30/2004

Source: Bloomberg. "AAA Insured" GO scale.This curve represents the yield available on 9/30/04. This curve can, and is likely to change on a day-to-day basis. Past performance is not indicative of future results.

� Dryden Low Duration Muni Bond portfolios employ a barbell approach that blends short 1-3 year maturity bonds with 6-10 year maturity bonds.

� Adding 6-10 year maturities captures the higher yields offered by the upward sloping municipal yield curve. However, like our longer-term municipal strategy, we emphasize premium coupon callable securities in this curve segment to reduce interest rate sensitivity.

Yiel

d

Years

DrydenLow Dur Muni Bond

PortfolioFocus

Dryden Low Duration Municipal Bond Portfolios:Yield Curve Strategy


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IV

Appendix

� Biographies

� Disclosure


®

Your Portfolio Management TeamRobert Tipp CFA, is Chief Investment Strategist of PIM’s Fixed Income Group. He is co-portfolio manager of Municipal Bond, Core Plus, U.S. Government, and Global Bond strategies, and is portfolio manager for Asset-Liability strategies and TIPs portfolios. Previously, Mr. Tipp served as co-head of PrudentialFinancial’s institutional fixed income business. Before joining Prudential Financial in 1991, Mr. Tipp was a Director in the Portfolio Strategies Group at the First Boston Corporation, where he developed, marketed, and implemented strategic portfolio products for money managers. Prior to that, Mr. Tipp was a senior staff analyst at the Allstate Research & Planning Center, and managed a number of fixed income and equity derivative strategies at Wells Fargo Investment Advisors. He received a Bachelor of Science (BS) in Business Administration with highest honors and a Master in Business Administration (MBA) in Finance with honors from the University of California, Berkeley. Mr. Tipp holds the Chartered Financial Analyst (CFA) designation.

Dennis Hepworth is Principal and municipal bond portfolio manager for Prudential Fixed Income. He is also Head of the Municipal Bond Research unit, where he covers real estate, housing (multi-family & single family), public power, cogeneration and unrated corporate backed bonds. Prior to joining the Prudential Fixed Income in 1997, Dennis was a sell side municipal research analyst at Prudential Securities, and a senior analyst in the Capital Markets Credit and Private Client areas of Merrill Lynch. He received a BS in Finance from the University of Tulsa. Dennis is a member of the Municipal Analysts Group of New York and the National Federation of Municipal Analysts.

Robert Germano is Vice President and municipal bond portfolio manager for Prudential Fixed Income. He manages several specialty state funds and an insured tax-exempt fund. Prior to joining Prudential Financial in 2002, Bob owned an investment firm, Germano Municipals Corp., where he advised tax-exempt portfolio managers on the fundamentals of portfolio construction and risk management strategies. Prior to that, Bob was an institutional salesperson for Dillon Read & Co. and Lazard Freres & Co., and was also the National Institutional Sales Manager for Drexel Burnham Lambert and Shearson Lehman Brothers. Bob also built and managed an institutional sales force for Seattle Northwest Securities Corp. He received a BS from the University of Xavier.


®

Your Portfolio Management TeamPhillip Slepian is an Analyst for Prudential Fixed Income’s Municipal Bond team. He assists in trading municipal securities for mutual fund and managed account portfolios, as well as assists in portfolio strategies for managed accounts. Prior to joining Prudential Financial in 2003, Phil was Manager of Fixed Income Trading for JB Oxford & Company in New York. He has been a fixed income securities trader and underwriter since 1983. Phil earned his Bachelor of Arts, cum laude in Sociology from Yeshiva University, New York City. He is a NASD Municipal Securities Registered Principal.

Glenwyn P. Baptist, CFA is the Director of Mutual Funds & Managed Accounts for Prudential Fixed Income. Glen is responsible for Prudential Fixed Income’s mutual fund and individual client managed account business. He oversees the product management of these products, including product development and positioning, investment communication and client service. Prior to taking on this role, Glen was Chief Operating Officer for Asset Management, responsible for business administration. Prior to becoming COO, he spent 6 years as Managing Director in charge of Fixed Income Research. Glen joined Prudential in 1986. He has a B.A. from St. Joseph’s College of Commerce, Bangalore University, and an M.B.A. from Northwestern University. He is a Chartered Financial Analyst and a Registered Representative.

Scott Sweitzer is a Portfolio Advisor for Prudential Fixed Income’s retail products and is responsible for investment communications and client service for Prudential Fixed Income’s separately managed retail fixed income portfolios, as well as the other retail portfolios and mutual funds managed by Prudential Fixed Income. Prior to joining Prudential Fixed Income in October, 2001, Scott spent five years at Prudential Investment Management as a mutual fund product manager responsible for fixed income funds, and as a marketing manager for portfolio management communications. Scott joined Prudential Financial in1991. He has a BA from Lock Haven University of Pennsylvania, and an MBA from Rutgers, Graduate School of Management.


®

Steven Raab is a Portfolio Advisor for Prudential Fixed Income’s retail products and is responsible for investment communications and client service for Prudential Fixed Income’s separately managed retail fixed income portfolios, as well as the other retail portfolios and mutual funds managed by Prudential Fixed Income. Prior to joining Prudential Fixed Income in October, 2002, Steven spent three years at UBS Global Asset Management as a product manager responsible for fixed income funds. Prior to that Steven spent five years with GE Asset Management, various roles in Product Management and Marketing & Communication. He has a BBA in Finance from IONA College, New Rochelle New York.

Your Portfolio Management Team


®

DisclosurePrudential Fixed Income is a unit of Prudential Investment Management, Inc. (“PIM”), a registered investment adviser and a Prudential Financial company. Pruco Securities Corporation (member SIPC), 751 Broad Street Newark NJ 07102. Prudential Securities and Pruco Securities are Prudential Financial companies. Prudential Financial is a service mark of The Prudential Insurance Company of America., Newark, NJ and its affiliates. Performance Descriptions: The investment returns through June 30,2001 represent the historical returns of the Dryden National Municipal Bond Fund, returns after June 30,2001 represents the performance of all discretionary accounts that been managed in the Dryden Municipal Bond Strategy for at least one full calendar quarter. Returns for periods longer than a year are annualized. Net performance represents the deduction of 1.25% which is the maximum program fee charged within this investment style.Actual fees may vary depending on,among other things,the applicable fee schedule and portfolio size. PIMS’ form ADV. Since accounts are individually managed,account portfolio holdings and account performance may vary. Keep in mind, there are differences between the management of individual accounts and mutual funds. These differences include the number of holdings and portfolio characteristics, and the ability of clients to impose restrictions. Therefore, the performance of the accounts may vary materially from that of the Fund even though the same investment style is used. Past performance is no guarantee of future results.

Definitions:Duration is a measure of the price volatility of a bond equal to the weighted average term to maturity of the bond’s cash flows. The weights are the present values of each cash flow as a percentage of the present value of all cash flows. The greater the duration of a bond, the greater its percentage price volatility.

Yield to Worst: At the time of security analysis, the yield to worst is the lowest yield that a buyer can expect amongst the standard return measures such as yield to maturity, yield to call, and yield to refunding.

Current Yield represents the income generated by the portfolio and is calculated by dividing the portfolio’s weighted average coupon by its weighted average price.

Benchmark Descriptions:Lehman Brothers Municipal Bond Index: is a broad-based total return index comprising investment grade, fixed-rate, and tax-exempt issues, with a remaining maturity of at least one year, including state and local general obligation, revenue, insured, and pre-refunded bonds that are selected from issues larger than $50 million dated since January 1984. Investors cannot directly purchase an index.

Lehman Brothers 3-5 Year Municipal Bond Index is a broad-based total return index comprising investment grade, fixed-rate, and tax-exempt issues, with a remaining maturity from 3 to 5 years, including state and local general obligation, revenue, insured, and pre-refunded bonds that are selected from issues larger than $50 million dated since January 1984. Investors cannot directly purchase an index.The returns of the index are shown for comparative purposes. When comparing the investment returns of the manager to the index, you should know the manager does not necessarily hold the same securities that comprise the index, the index may not reflect the asset allocation and portfolio characteristics of accounts managed by the manager and that the index is unmanaged. Credit Ratings: Are assigned by Moody’s and Standard & Poors and are a formal evaluation of a company’s credit history and capability of repaying obligations. Ratings range from AAA (which are judged to be of the best quality) through C (which are regarded as having extremely poor prospects of ever attaining any real investment standing)

IFS-A092608 6/2004

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