Supplement to Prospectus Dated May 1, 1996
Supplement dated September 4, 1996
A. CHANGES IN VARIABLE INVESTMENT OPTIONS
The following changes, subject to shareholder approval, are scheduled
to take place on October 15, 1996 regarding the following portfolios of the
American Skandia Trust ("AST"), one of the underlying mutual funds whose
portfolios are made available as variable investment options under your Annuity:
I. Changes in the AST Phoenix Balanced Asset Portfolio: Reappointment of
American Skandia Investment Services, Incorporated (the "Manager") as investment
manager; increase in the investment management fee on average daily net assets
over $75 million; appointment of Putnam Investment Management Inc. ("Putnam
Management") as new portfolio subadviser; changes to the portfolio's investment
objective and certain fundamental investment restrictions; and a change in the
portfolio's name to the "AST Putnam Balanced Portfolio."
II. Changes in the Seligman Henderson International Equity Portfolio:
Reappointment of the Manager as investment manager; appointment of Putnam
Management as new portfolio subadviser; changes to the portfolio's investment
objective and certain fundamental investment restrictions; and a change in the
portfolio's name to the "AST Putnam International Equity Portfolio."
III. Changes in the Seligman Henderson International Small Cap Portfolio:
Reappointment of the Manager as investment manager; appointment of Founders
Asset Management, Inc. as new portfolio subadviser; changes to the portfolio's
investment objective and certain fundamental investment restrictions; and a
change in the portfolio's name to the "Founders Passport Portfolio."
The above changes are described more fully in the September 4, 1996 Supplement
to the May 1, 1996 AST Prospectus.
B. OTHER CHANGES
On the cover page of the Prospectus after the third paragraph the following is
added: "Please note that not all of the portfolios listed above may be available
as an investment option for your Annuity."
Under the caption "HIGHLIGHTS - (1) Investment Options" the following is added
at the end of the second paragraph: "Please note that not all of the Underlying
Mutual Fund Portfolios and their corresponding Sub-accounts may be available as
investment options for your Annuity."
Under the caption "INVESTMENT OPTIONS - Variable Investment Options" the
following is added at the end of the chart: "Please note that not all of the
Underlying Mutual Fund Portfolios and their corresponding Sub-accounts may be
available as investment options for your Annuity."
Under the caption "OPERATION OF THE SEPARATE ACCOUNTS - Separate Account B" the
following is added at the end of the fifth paragraph: "Please note that not all
of the underlying mutual funds or their portfolios and their corresponding
Sub-accounts may be available for allocation of your Account Value."
Under the caption "OTHER MATTERS - Modification" in the first paragraph the
Company also reserves the right to "discontinue offering any variable investment
option at any time."
ASXT (9/96)
