Fidelity Advisor Small Cap Inv Acct

The TR Fidelity Advisor Small Cap Fund is a Separate Account portfolio maintained by Transamerica Financial Life Insurance Company (TFLIC). The TR Fidelity Advisor Small Cap Fund invests exclusively in the Fidelity Advisor Small Cap Fund (Class T shares), a mutual fund, which had an inception date of September 9, 1998. The mutual fund is managed by Jamie Harmon, since October 2005.

Best suited for investors who want a stock fund to pursue their long-term goals and are comfortable with the risks inherent in small company stock-fund investing. The mutual fund normally invests at least 65% of its total assets in securities of companies with small market capitalizations, which are similar to companies in the Russell 2000. It may invest in securities of foreign issuers in addition to securities of domestic issuers. The mutual fund may also invest in either "growth" stocks or "value" stocks or a combination of both types. In selecting investments, the mutual fund portfolio manager uses a fundamental analysis of each issuer's financial condition, industry position, and market and economic conditions. Factors considered include growth potential, earnings potential, earnings estimates, and management. Various techniques, such as buying and selling futures contracts, may be used to increase or decrease the mutual fund's exposure to changing security prices or other factors that affect security values.

Investing in small company stocks involves heightened risk and may be more volatile than larger company stocks. The value of equity securities fluctuates in response to issuer, political, market, and economic developments. In the short term, equity prices can fluctuate dramatically in response to these developments. Foreign securities, foreign currencies, and securities issued by U.S. entities with substantial foreign operations can involve additional risks relating to political, economic, or regulatory conditions in foreign countries. Changes in the financial condition of an issuer can affect the value of an issuer's securities.

There are no Investment Management or Administrative Charges applicable to this Separate Account portfolio. However, the assets in this Separate Account portfolio are subject to the total operating expenses (expense ratio) of the underlying mutual fund, which were 1.57% as of November 30, 2005. (Source: Morningstar, Inc.) Deposits to this Separate Account portfolio are not subject to the 3.50% front-end load of the underlying mutual fund.