Allstate Life Insurance Company of New York
Allstate Life of New York Variable Annuity Account II
Supplement to the Prospectus
Dated May 1, 1998
The Morgan Stanley Dean Witter Variable Investment Series (the "Fund") announced
today that the shareholders of its Capital Appreciation Portfolio recently
approved the combination of substantially all of that Portfolio's assets with
those of the Fund's Equity Portfolio. The Fund expects the combination, which is
subject to regulatory approval, to occur by the end of March 1999.
As a result of the combination of the Portfolios, the Capital Appreciation and
Equity Sub-Accounts available under your Contract will both own shares of the
Fund's Equity Portfolio. To avoid duplication and confusion, we intend to
combine the Capital Appreciation Sub-Account into the Equity Sub-Account in
conjunction with the combination of the Portfolios. When we combine the
Sub-Accounts, you will receive an interest in the Equity Sub-Account equal in
value to your interest in the Capital Appreciation Sub-Account at the time of
the combination. Thereafter, we will no longer offer the Capital Appreciation
Sub-Account as an investment option.
February 24, 1999
