[LOGO] PRUDENTIAL FINANCIAL

                                                      Prudential Financial, Inc.
                                                          751 Broad Street
                                                        Newark, NJ 07102-3777
                                                         www.prudential.com

NEWS RELEASE


For Immediate Release                                   Contact: Bob DeFillippo
- ---------------------                                            973 802-4149
August 7, 2002



               PRUDENTIAL FINANCIAL, INC. ANNOUNCES REORGANIZATION

     Newark, NJ - Arthur F. Ryan, chairman and CEO of Prudential Financial, Inc.
(NYSE:PRU), today announced organizational changes in the company that include
the establishment of an Office of the Chairman and three divisions: Insurance,
Investments, and International Insurance and Investments. The realignment of the
company's businesses is designed to improve operating effectiveness and generate
cost savings while enhancing revenue growth.

     Ryan also announced he had created four vice chair positions in the Office
of the Chairman to lead the company. Promoted to those positions were: Vivian
Banta, currently executive vice president of the U.S. Consumer Group, who will
head the Insurance Division; John Strangfeld, currently executive vice president
in charge of Prudential Securities and Prudential Investment Management, who
will head the Investments Division; Rodger Lawson, currently executive vice
president in charge of International Investments, who will head the
International Insurance and Investments Division; and Mark Grier, currently
executive vice president of Financial Management, who will continue to head that
area.

     "The new Office of the Chairman is charged with the consistent, common
execution of Prudential's global strategy to `Grow and Protect' client wealth
and will materially enhance the company's ability to take advantage of its
substantial growth opportunities," Ryan said.

     The new organizational structure will reduce the company's operating
divisions from four to three, by incorporating Prudential's important employee
benefits activities into the Insurance and Investments divisions. In addition,
the activities in the Retail Investments business will be redeployed into the
Insurance and Investments divisions. The company will begin reporting segment
results based on its new structure with its third quarter financial reports, and
plans to provide historical information aligned with the new segments in
October, prior to release of its third quarter earnings.

                                    - more -



Page 2.

     The Insurance Division consists of the company's individual life insurance,
annuities, group insurance, property & casualty insurance, retail distribution,
and voluntary benefits. Prudential's real estate and relocation services and the
electronic development group will also report to Ms. Banta.

     The Investments Division consists of the businesses of Prudential
Securities, as well as the company's asset management, guaranteed products,
retirement services, mutual funds and managed account products.

     The International Insurance and Investments Division consists of
Prudential's current International Insurance and International Investments
operations.

     Ryan also announced that Jean Hamilton, CEO of Prudential Institutional,
the company's employee benefits division, plans to leave at the end of August to
build upon her very successful career of restructuring, improving, and growing a
wide variety of businesses.

     "These changes create greater alignment of our product and distribution
activities in Prudential's divisions while enhancing our ability to achieve the
ongoing growth and efficiency goals we have targeted," Ryan said.

     Prudential Financial companies, with approximately $557 billion in total
assets under management and administration as of June 30, 2002, serve individual
and institutional customers worldwide and include The Prudential Insurance
Company of America, one of the largest life insurance companies in the U.S.
These companies offer a variety of products and services, including life
insurance, property and casualty insurance, mutual funds, annuities, pension and
retirement related services and administration, asset management, securities
brokerage, banking and trust services, real estate brokerage franchises and
relocation services. For more information, visit www.prudential.com.

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