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                              FOR IMMEDIATE RELEASE

             NATIONWIDE INSURANCE ANNOUNCES CLASS ACTION SETTLEMENT
                COMPANY SAYS AGREEMENT PROVIDES RANGE OF OPTIONS
                        TO FAIRLY COMPENSATE POLICYOWNERS

         COLUMBUS, OHIO - Nationwide Life Insurance and Nationwide Mutual
Insurance today announced that they have reached a settlement agreement in a
class action lawsuit concerning individual whole life, universal life, and
variable universal life insurance policies issued by the Company from 1982
through 1997. The Company said the agreement, which covers approximately 650,000
policyowners, serves the mutual interest of policyowners, Nationwide
shareholders, and the Company by providing substantial benefit to policyowners
and avoiding the disruption and expense of a lengthy court fight.

         The Company said its decision to settle reflected a desire to address
policyowners' concerns and would enable it to focus its full energy on
continuing to meet its customers' financial and insurance needs.

         The suit was filed with the New York State Supreme Court in February
1997. The proposed settlement was preliminarily approved by the Court on August
20, 1998, and a Fairness Hearing is scheduled for December 17, 1998. At that
Hearing, the Court will review the fairness and reasonableness of the proposed
settlement prior to issuing a Final Order and Judgment.

                 INTEREST RATE DECLINES CAUSED UNDERPERFORMANCE

"Nationwide has a long history of providing individuals with outstanding
insurance protection," said John C. Millen, Officer - National Media Relations.
"We value the tradition of professionalism and integrity set by our Company and
our agents, and we deeply regret that certain life insurance products did not
meet our customers' expectations. "This proposed settlement is a fair and
reasonable effort to compensate policyowners for any disappointed expectations
related to the performance of these products," Millen continued. The Company
said the inability to meet expectations was largely due to declining interest
rates.

          RANGE OF OPTIONS GIVES POLICYOWNERS FINAL SAY ON COMPENSATION

         Nationwide said the proposed settlement, which is subject to approval
by the New York Supreme Court in Syracuse, New York, provides policyowners with
a potential value of approximately $100 million in policy adjustments,
discounted premiums, and discounted products. The proposed settlement gives
eligible policyowners the right to choose from five compensation options under
General Policy Relief depending upon the type of policy initially purchased.
Class Members who believe they suffered specific harm may apply for alternative
relief under a Claim-Review Process.

         "By providing a range of options, the proposed settlement enables
eligible policyowners to choose the option that best meets their needs," Millen
said.



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SETTLEMENT WILL NOT MATERIALLY AFFECT NATIONWIDE'S FINANCIAL CONDITION

         The Company said the proposed settlement benefits shareholders by
reducing the Company's exposure and by establishing a fair and certain
compensation process that will have no material impact on the financial
condition of the Company.

         The Company said an enhanced internal compliance program, evolution in
Company and industry practices and new regulatory safeguards will provide
policyowners with a better understanding of the potential benefits and risks
associated with certain products.

         "Nationwide is fully committed to compliance with applicable laws and
regulations and will ensure that it operates in conformity with all state and
federal regulations," Millen said.

        NATIONWIDE ESTABLISHES SETTLEMENT INFORMATION CENTER AND WEB SITE

         Nationwide said it had established an extensive communications program
to inform policyowners about the proposed settlement, explain policyowner
options, and enable Class Members to take full advantage of the opportunities it
presents.

         It said it was in the process of sending a detailed notice to some
650,000 eligible policyowners of the suit and proposed settlement, has
established a Class Action Call Center, and developed "user friendly" documents
to make sure that policyowners clearly understand their options.

      The Company said that policyowners with questions or comments or who
        need additional information should call 1-888-891-8154, or visit
            the settlement Web site at www.nationwide.com/classaction