Moody’s Upgrades Financial Strength Ratings

Montpelier, Vermont (October 17, 2007) – Moody’s Investors Service today upgraded the financial strength ratings of National Life Insurance Co., and its sister company, Life Insurance Company of the Southwest.

Both companies are members of National Life Group.

Moody’s Vice President and Senior Credit Officer, Arthur Fliegelman, made the announcement in New York, citing National Life’s “improvement in its overall financial profile, especially in its operating profitability.”

Thomas H. MacLeay, president, chairman and CEO of National Life Group, welcomed the ratings upgrade, saying that Moody’s action “culminates a long process that has involved a lot of hard work by a number of people across all areas of National Life Group.

“Most importantly, it confirms for our customers, our partners and for the general business world what we know well: Over the past few years we have significantly grown our company and improved our financial strength,” said MacLeay.

Moody’s raised the financial strength rating for National Life Insurance Co. and Life Insurance Company of the Southwest (LSW) to A2 from A3. A2 is the sixth highest of the 21 ratings used by Moody’s.

About National Life Group

National Life Group is a diversified family of financial service companies that has successfully forged a strong identity as a product innovator. Companies in the group offer a comprehensive portfolio of life insurance, annuity and investment* products to help individuals, families and businesses pursue their financial goals.

National Life, a Fortune 1000 company, serves more than 700,000 customers. With 2006 revenue of $1.4 billion and net income of $111 million, National Life Group employs roughly 900 employees, with most located at its home office in Montpelier, Vt. Group companies also maintain offices in Dallas, New York, San Francisco, Boston and Radnor, Pa.

The Group is made up of its flagship company, National Life Insurance Company, founded in Montpelier, Vermont in 1850; Life Insurance Company of the Southwest, Dallas, Texas, and Sentinel Asset Management Inc., Equity Services, Inc. and National Retirement Plan Advisors Inc., all located in Montpelier.

* Securities are offered through Registered Representatives of Equity Services, Inc., Member FINRA/SIPC, One National Life Drive, Montpelier, Vermont 50604 (802) 229-3900. National Life Group is a trade name representing various affiliates, which offer a variety of financial service products.