Clarification of A.M. Best News Release

(August 9, 2007) - A news release today detailing a ratings downgrade involving a Puerto Rican insurance company is leading to some confusion about whether the action involved the Vermont-based National Life Group companies.

The action by A.M. Best Co. was taken against National Financial Group and its sister company, National Life Insurance Company. While the news release itself said the company was based in Puerto Rico, the headline on the news release did not. It said: "A.M. Best Places Ratings of National Financial Group and National Life Insurance Company Under Review With Negative Implications."

The Puerto Rican company is in no way associated with the Vermont-based National Life Group company, National Life Insurance Co.

National Life Insurance Company, based in Montpelier, Vermont, has been issued financial strength ratings of excellent by A.M. Best (the third highest out of 15 rankings). In its most recent report, issued June 15, 2007, A.M. Best affirmed the excellent rating and revised the outlooks for debt ratings and issuer credit ratings to positive from stable.

In its June report A.M. Best said the actions "reflect National Life's positive financial trends including solid growth in top-line revenue, operating earnings and capitalization, both on an absolute and risk-adjusted basis. A.M. Best also recognizes the group’s reduced investment risk, stable investment spreads, distribution channel diversification and strengthened enterprise risk management practices."

On Tuesday of this week Moody's Investors Service announced that it has placed under review for possible upgrade the ratings of National Life Group's two insurance affiliates.

National Life Insurance Company, the flagship of the National Life Group companies, is licensed to do business in all 50 states and the District of Columbia. National Life Group is a tradename of National Life Insurance Company and its affiliates. The Puerto Rican company referenced in the Best release is not licensed to do business in the United States.

National Life Group is a growing and diversified family of financial service companies made up of its flagship company, National Life Insurance Company which was founded in Montpelier, VT. in 1850, as well as Sentinel Asset Management Inc., Equity Services, Inc. and National Retirement Plan Advisors Inc. all of Montpelier; and Life Insurance Company of the Southwest of Dallas, Texas.