Columbia Select Mid Cap Value Inv Acct

The TR Columbia Mid Cap Value Fund is a Separate Account portfolio maintained by Transamerica Financial Life Insurance Company (TFLIC). The TR Columbia Mid Cap Value Fund invests exclusively in the Columbia Mid Cap Value Fund¹ (Class A shares), a mutual fund, which had an inception date of November 20, 2001. This mutual fund is managed by David Hoffman, since 2004; Diane Sobin, since 2001; Noah Petrucci, since 2002; and Lori Ensinger, since 2001. Effective September 23, 2005, the Columbia Mid Cap Value Fund merged with and into the Nations Midcap Value Fund. On that date, the Nations Midcap Value Fund changed its name to the Columbia Mid Cap Value Fund.

Best suited for investors who seek long-term growth of capital with income as a secondary consideration. Under normal circumstances, the Columbia Mid Cap Value mutual fund will invest at least 80% of its assets in equity securities of U.S. companies whose market capitalizations are within the range of the companies within the Russell Midcap Value Index (currently between $1.4 billion and $13.4 billion) and that are believed to have the potential for long-term growth. The mutual fund may also invest up to 20% of its assets in foreign securities. It may also invest in real estate investment trusts. In selecting investments, the management team uses a three prong approach, combing fundamental and quantitative analysis with risk management to identify value opportunities and construct the portfolios. The management team looks at mature, fundamentally sound businesses that are believed to be attractively priced due to investor indifference or unpopularity; various measures of relative valuation, including price to cash flow and relative dividend yield; a company’s current operating margins relative to its historic range; and indicators of potential stock price appreciation.

Effective August 15, 2005, this Separate Account may be subject to certain transfer restrictions. Participant-directed transfers into this contract account may be limited to one transfer per 28 day period. Automatic scheduled transactions such as payroll contributions, loan repayment, etc. are not subject to these restrictions. Additionally, plan-level restrictions may apply. However, you may transfer funds out of this contract account at any time. These restrictions may be changed at any time to comply with any restrictions on trading imposed by the underlying mutual fund.

Historically, stocks have provided greater long-term returns and have entailed greater short-term market risks than other investment choices. The securities issued by mid-capitalization companies may be more susceptible to market downturns, and their prices could be more volatile than those of larger companies. Value stocks may be subject to special risks that have caused the stocks to be out of favor and undervalued in the advisor's opinion.

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 1.20% as of November 30, 2005. (Source: Morningstar, Inc.) Deposits to this Separate Account portfolio are not subject to the 5.75% front-end load of the underlying mutual fund.