(Logo: http://www.newscom.com/cgi-bin/prnh/20050830/LFLOGO )

Dennis R. Glass, president and CEO, commented, "We are pleased with theaffirmation of the financial strength ratings for our major insurancesubsidiaries. These ratings validate our commitment to meeting our obligationsto policyholders. S&P's actions corroborate the strength of our business modeland operating earnings, as well as our balanced investment portfolio, whilerecognizing the difficult market environment."

S&P also affirmed the A+ counterparty credit rating on Lincoln NationalCorporation and revised its outlook for the holding company from stable tonegative, citing among other factors the challenging macro-economic outlookfor the industry. The AA- counterparty and financial strength rating onFirst-Penn Pacific Company was also affirmed with a revised outlook to stable.

Lincoln Financial Group is the marketing name for Lincoln NationalCorporation (NYSE: LNC) and its affiliates. With headquarters in thePhiladelphia region, the companies of Lincoln Financial Group had assets undermanagement of $200 billion as of September 30, 2008. Through its affiliatedcompanies, Lincoln Financial Group offers: annuities; life, group life anddisability insurance; 401(k) and 403(b) plans; savings plans; mutual funds;managed accounts; institutional investments; and comprehensive financialplanning and advisory services. Affiliates also include: Delaware Investments,the marketing name for Delaware Management Holdings, Inc. and itssubsidiaries; and Lincoln UK. For more information, including a copy of ourmost recent SEC reports containing our balance sheets, please visithttp://www.LincolnFinancial.com.

Forward-Looking Statements-Cautionary Language

Certain statements made in this release and in other written or oralstatements made by Lincoln or on Lincoln's behalf are "forward-lookingstatements" within the meaning of the Private Securities Litigation Reform Actof 1995 ("PSLRA"). A forward-looking statement is a statement that is not ahistorical fact and, without limitation, includes any statement that maypredict, forecast, indicate or imply future results, performance orachievements, and may contain words like: "believe", "anticipate", "expect","estimate", "project", "will", "shall" and other words or phrases with similarmeaning in connection with a discussion of future operating or financialperformance. In particular, these include statements relating to futureactions, trends in our businesses, prospective services or products, futureperformance or financial results, and the outcome of contingencies, such aslegal proceedings. Lincoln claims the protection afforded by the safe harborfor forward-looking statements provided by the PSLRA.

Forward-looking statements involve risks and uncertainties that may causeactual results to differ materially from the results contained in the forward-looking statements. Risks and uncertainties that may cause actual results tovary materially, some of which are described within the forward-lookingstatements include, among others:

-- Continued deterioration in general economic and business conditions,both domestic and foreign, that may affect foreign exchange rates, premiumlevels, claims experience, the level of pension benefit costs and funding andinvestment results;

-- Continued economic declines and credit market illiquidity could causeus to realize additional impairments on investments and certain intangibleassets including a valuation allowance against deferred tax assets, which mayreduce future earnings and/or affect our financial condition and ability toraise additional capital or refinance existing debt as it matures;

-- Uncertainty about the effectiveness of the U.S. government's plan topurchase large amounts of illiquid, mortgage-backed and other securities fromfinancial institutions;

-- Legislative, regulatory or tax changes, both domestic and foreign, thataffect the cost of, or demand for, Lincoln's products, the required amount ofreserves and/or surplus, or otherwise affect our ability to conduct business,including changes to statutory reserves and/or risk-based capital requirementsrelated to secondary guarantees under universal life and variable annuityproducts such as Actuarial Guideline VACARVM; restrictions on revenue sharingand 12b-1 payments; and the potential for U.S. Federal tax reform;

-- The initiation of legal or regulatory proceedings against Lincoln orits subsidiaries, and the outcome of any legal or regulatory proceedings, suchas: (a) adverse actions related to present or past business practices commonin businesses in which Lincoln and its subsidiaries compete; (b) adversedecisions in significant actions including, but not limited to, actionsbrought by federal and state authorities and extra-contractual and classaction damage cases; ( c ) new decisions that result in changes in law; and(d) unexpected trial court rulings;

-- Changes in interest rates causing a reduction of investment income, themargins of Lincoln's fixed annuity and life insurance businesses and demandfor Lincoln's products;

-- A decline in the equity markets causing a reduction in the sales ofLincoln's products, a reduction of asset-based fees that Lincoln charges onvarious investment and insurance products, an acceleration of amortization ofdeferred acquisition costs, value of business acquired, deferred salesinducements and deferred front-end loads and an increase in liabilitiesrelated to guaranteed benefit features of Lincoln's variable annuity products;

-- Ineffectiveness of Lincoln's various hedging strategies used to offsetthe impact of changes in the value of liabilities due to changes in the leveland volatility of the equity markets and interest rates;

-- A deviation in actual experience regarding future persistency,mortality, morbidity, interest rates or equity market returns from Lincoln'sassumptions used in pricing its products, in establishing related insurancereserves and in the amortization of intangibles that may result in an increasein reserves and a decrease in net income, including as a result ofstranger-originated life insurance business;

-- Changes in GAAP that may result in unanticipated changes to Lincoln'snet income, including the impact of Statement of Financial AccountingStandards No. 157, "Fair Value Measurements," and SFAS No. 159, "The FairValue Option for Financial Assets and Financial Liabilities;"

-- Lowering of one or more of Lincoln's debt ratings issued by nationallyrecognized statistical rating organizations and the adverse impact such actionmay have on Lincoln's ability to raise capital and on its liquidity andfinancial condition;

-- Lowering of one or more of the insurer financial strength ratings ofLincoln's insurance subsidiaries and the adverse impact such action may haveon the premium writings, policy retention and profitability of its insurancesubsidiaries;

-- Significant credit, accounting, fraud or corporate governance issuesthat may adversely affect the value of certain investments in the portfoliosof Lincoln's companies requiring that Lincoln realize losses on suchinvestments;

-- The impact of acquisitions and divestitures, restructurings, productwithdrawals and other unusual items, including Lincoln's ability to integrateacquisitions and to obtain the anticipated results and synergies fromacquisitions, including Lincoln's ability to successfully integrateJefferson-Pilot's businesses, to achieve the expected synergies from themerger or to achieve such synergies within our expected timeframe;

-- The adequacy and collectibility of reinsurance that Lincoln haspurchased;

-- Acts of terrorism, war or other man-made and natural catastrophes thatmay adversely affect Lincoln's businesses and the cost and availability ofreinsurance;

-- Competitive conditions, including pricing pressures, new productofferings and the emergence of new competitors, that may affect the level ofpremiums and fees that Lincoln can charge for its products;

-- The unknown impact on Lincoln's business resulting from changes in thedemographics of Lincoln's client base, as aging baby-boomers move from theasset-accumulation stage to the asset-distribution stage of life; and

-- Loss of key management, portfolio managers in the Investment Managementsegment, financial planners or wholesalers.

The risks included here are not exhaustive. Lincoln's annual report onForm 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K andother documents filed with the SEC include additional factors which couldimpact Lincoln's business and financial performance. Moreover, Lincolnoperates in a rapidly changing and competitive environment. New risk factorsemerge from time to time and it is not possible for management to predict allsuch risk factors.

Further, it is not possible to assess the impact of all risk factors onLincoln's business or the extent to which any factor, or combination offactors, may cause actual results to differ materially from those contained inany forward-looking statements. Given these risks and uncertainties, investorsshould not place undue reliance on forward-looking statements as a predictionof actual results. In addition, Lincoln disclaims any obligation to update anyforward-looking statements to reflect events or circumstances that occur afterthe date of the release.

SOURCE Lincoln Financial Group