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Aetna Assumes Remainder Of MBL Life Immediate Annuity Business

HARTFORD, Conn., June 24, 1999 — (NYSE: ΑET) Aetna Retirement Services announced today that Aetna Life Insurance and Annuity Company (ALIAC) has entered into an agreement with MBL Life Assurance Corporation to issue new Aetna Immediate Annuity contracts in substitution for certain MBL Life variable annuity contracts.

MBL Life is a former subsidiary of the Mutual Benefit Life Insurance Company, which was placed in rehabilitation by the New Jersey Insurance Commissioner in 1991. MBL Life assumed and reinsured the insurance liabilities and assumed most of the assets of Mutual Benefit Life as part of a court-approved rehabilitation plan. The ALIAC transaction is one of the final steps in the successful conclusion of the Mutual Benefit Life rehabilitation.

"Aetna’s annuity contracts are especially designed to help meet the needs of individuals in their retirement years," said Catherine Smith, Chief Financial Officer of Aetna Retirement Services. "We offer a comprehensive slate of investment options that can be tailored to provide a stream of income for life."

Most of the affected contract participants in the ALIAC transaction are retirees who have annuitized under the terms of the MBL Life contracts. The transaction provides the retirees with an ALIAC contract that, while substantially similar, provides increased investment flexibility.

ALIAC’s Immediate Annuity has 26 funds with fund transfer capability during the terms of the payout. Subject to approval by the New Jersey Superior Court overseeing the rehabilitation, and the satisfaction of other closing conditions, closing is expected to take place on or about July 14, 1999 with the first benefit payment from ALIAC anticipated to occur on August 1st.

ALIAC enjoys strong ratings from the major insurance company rating agencies which pertain to its financial strength and not to the safety and performance of the investment options. ALIAC was chosen by MBL Life because of its ability to provide a competitive product and professional customer service.

Aetna Life Insurance and Annuity Company, a wholly owned subsidiary of Aetna Retirement Services, Inc., provides a full range of products for a lifetime of financial needs. Securities are offered by Aetna Investment Services, Inc. and Aetna Life Insurance and Annuity Company. Aetna Investment Services, Inc., and Aetna Retirement Services, Inc. are subsidiaries of Hartford, Connecticut-based Aetna Inc., one of the nation’s largest stockholder-owned insurance and financial services companies.

For more information about Aetna Inc., please visit the company's website at www.aetna.com.