Phoenix Companies, National Life Group Announce Alliance

(January 18, 2007) - Hartford, CT and Montpelier, VT – The Phoenix Companies, Inc. (NYSE: PNX) and National Life Group have formed a strategic alliance to increase the sales of Phoenix’s variable annuities and offer National Life Group’s affiliated Sentinel Variable Product Funds in more variable products.

Under the alliance, Phoenix and Equity Services, Inc., a member of National Life Group, will co-market Phoenix’s variable annuity products, including flexible premium deferred variable annuities and a single premium immediate variable annuity, through Equity Services’ registered representatives. The alliance also includes plans to add Sentinel Variable Product Funds as investment options to many of Phoenix’s variable annuity and life insurance products later this year.

Dona D. Young, chairman, president and chief executive officer of Phoenix, called the relationship “an important step in our growth strategy in two key ways. First, it broadens our annuity distribution to complement our existing distribution channels. Second, it leverages our capabilities and investments in product development, wholesaler training and our technology infrastructure.”

Phoenix wholesalers will provide sales and product assistance to the registered representatives of Equity Services, Inc., many of whom are members of the NL Financial Alliance (NLFA), one of the core distribution channels for the National Life Insurance Company.

“Like Phoenix, NLFA focuses on helping individuals, families, and business owners maintain their financial well-being, and we look forward to making our product portfolio available to NLFA clients,” Mrs. Young added. “Clearly this is a strategic advantage for both companies.”

National Life Chairman and CEO Thomas MacLeay said the company chose to ally with Phoenix because of its innovative variable annuity products.

“National Life strives to provide a comprehensive set of products to meet our customers’ long term financial needs, and Phoenix has developed products that complement our own offerings for many of our customers,” he said. “Phoenix’s comprehensive variable annuity portfolio complements the choices NLFA agents have to solve our clients’ financial needs and to help high-net-worth clients accumulate assets to fund their retirement, preserve their estates, and efficiently transfer their wealth to heirs or charitable organizations.”

Phoenix’s annuities provide a full spectrum of death benefit options and living benefit riders, including a guaranteed minimum income benefit (GMIB), guaranteed minimum accumulation benefit (GMAB) and guaranteed minimum withdrawal benefit (GMWB).

Mr. MacLeay said the planned addition of the Sentinel Variable Product Funds as investment options in the Phoenix variable products “will give Phoenix customers access to another well-established fund family.”

About National Life Group

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. Companies in the Group offer a comprehensive portfolio of life insurance, annuity and equity products to help individuals, families and businesses meet their financial goals.

About The Phoenix Companies

With roots dating to 1851, The Phoenix Companies, Inc. (NYSE:PNX) helps individuals and institutions solve their often highly complex personal financial and business planning needs through its broad array of life insurance, annuities and investments. The company’s products and services reflect deep insights into the wants and needs of consumers and financial professionals gleaned from research, including its Phoenix Wealth Survey, conducted annually since 1999. Phoenix has been recognized for its people-friendly programs by Working Mother magazine, the National Association of Female Executives and The Princeton Review. In 2005, Phoenix had annual revenues of $2.6 billion and total assets of $27.7 billion. For more information, visit www.phoenixwm.com.

Variable insurance products and mutual funds are sold by prospectus. You should carefully consider investment objectives, charges, expenses and risks before you invest. The prospectus contains this and other important information. You may obtain the prospectus by contacting your registered representative or by contacting Phoenix at (800) 417-4769 or Equity Services, Inc. at (802) 229-3900. Please read the prospectus carefully before investing.

Phoenix insurance and annuities are issued by Phoenix Life Insurance Company (East Greenbush, NY), PHL Variable Insurance Company (Hartford, CT), and Phoenix Life and Annuity Company (Hartford, CT). Phoenix variable products and mutual funds are distributed by Phoenix Equity Planning Corporation, One American Row, Hartford, CT 06102.

Sentinel Variable Product Funds are distributed by Equity Services, Inc., Registered Broker/Dealer Affiliate of National Life Insurance Company, One National Life Drive, Montpelier, Vermont 05604 (802) 229-3900.

The Phoenix Companies, Inc. and National Life Group’s members are independent of each other.

For more information, please contact:

Joe Fazzino, The Phoenix Companies, Inc., 860-403-6015, joe.fazzino@phoenixwm.com

Elizabeth MacGowan, National Life Group, 802-229-3589, emacgowan@nationallife.com