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SUPPLEMENT DATED NOVEMBER 1, 2000 TO PROSPECTUS DATED
OCTOBER 23, 2000
Olympia XT
Individual Variable and Fixed Annuity Contract - Flexible Purchase Payments
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PENN MUTUAL VARIABLE ANNUITY ACCOUNT III
THE PENN MUTUAL LIFE INSURANCE COMPANY
Philadelphia, Pennsylvania 19172 o Telephone (800) 523-0650
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The Expenses table on page 4 of the prospectus is replaced with the following
table.
EXPENSES
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<S> <C>
Contract Owner Transaction Expenses
Sales Load Imposed on Purchase Payments............................................................... None
Maximum Contingent Deferred Sales Charge................................. 8% of purchase payments withdrawn(a)
Transfer Fee.......................................................................................... None
Maximum Annual Contract Administration Charge......................................................... $40(b)
Separate Account Annual Expenses (as a percentage of Variable Account Value)
Mortality and Expense Risk Charge.................................................................... 1.25%
Contract Administration Charge....................................................................... 0.15%
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Total Separate Account Annual Expenses (Without Rider)............................................... 1.40%
Enhanced Guaranteed Minimum Death Benefit Rider (Optional)........................................... 0.20%(c)
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Total Separate Account Annual Expenses (With Rider) ................................................. 1.60%
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(a) The charge decreases to zero in the tenth year. See What Charges Do I Pay?
in this Prospectus.
(b) You pay $40 or 2% of the Variable Account Value, whichever is less. You do
not pay this charge if your Variable Account Value is more than $100,000.
(c) If eligible, you may purchase an Enhanced Guaranteed Minimum Death Benefit
Rider with your Contract. The current annual charge for the Rider will never
be more than 0.25%. See What Charges Do I Pay? in this Prospectus.
The second sentence on page 24 under the caption Enhanced Guaranteed Minimum
Death Benefit - Step Up (Optional) is amended to read:
The charge is currently 0.20% of the average annual Variable Account Value, but
may be raised to a maximum rate of 0.25% at the discretion of Penn Mutual.
