MOMENTUM(SM)
Retirement planning from Equitable Life
SUPPLEMENT DATED AUGUST 30, 1999 TO THE
PROSPECTUS DATED MAY 1, 1999
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This supplement adds and modifies certain information contained in the
prospectus dated May 1, 1999 for the MOMENTUM group deferred annuity contract
issued by THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES ("Equitable
Life").
You should read this supplement together with the prospectus. Terms used in this
supplement have the same meaning as they do in the prospectus, unless we
indicate otherwise. This supplement provides information on:
(1) the following 12 new variable investment options available under the
MOMENTUM contract: EQ/Alliance Premier Growth, Calvert Socially
Responsible, Capital Guardian International, Capital Guardian Research,
Capital Guardian U.S. Equity, EQ/Evergreen, EQ/ Evergreen Foundation,
Lazard Large Cap Value, Lazard Small Cap Value, MFS Growth with Income,
EQ/Putnam International Equity, and EQ/Putnam Investors Growth;
(2) the Equitable Companies Incorporated name change to AXA Financial, Inc.;
(3) change in management of EQ Advisors Trust from EQ Financial Consultants,
Inc. to Equitable Life;
(4) EQ Financial Consultants, Inc. plans to become AXA Advisors, LLC; and
(5) updated information "About our year 2000 progress."
(1) NEW VARIABLE INVESTMENT OPTIONS
THE FOLLOWING SENTENCE REPLACES THE LAST SENTENCE OF THE SECOND PARAGRAPH ON THE
COVER PAGE OF THE PROSPECTUS:
The investment options include 36 variable investment options and one guaranteed
interest option ("investment options").
THE FOLLOWING CHART REPLACES THE CHART OF "VARIABLE INVESTMENT OPTIONS" ON THE
COVER PAGE OF THE PROSPECTUS. THE NEW VARIABLE INVESTMENT OPTIONS ARE IN
ITALICS.
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VARIABLE INVESTMENT OPTIONS
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FIXED INCOME OPTIONS:
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DOMESTIC FIXED INCOME AGGRESSIVE FIXED INCOME
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o Alliance Intermediate o Alliance High Yield
Government Securities
o Alliance Money Market
o Alliance Quality Bond
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EQUITY OPTIONS:
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DOMESTIC EQUITY INTERNATIONAL EQUITY
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o Alliance Common Stock o Alliance Global
o Alliance Equity Index o Alliance International
o Alliance Growth & Income o Capital Guardian
o EQ/Alliance Premier International
Growth o Morgan Stanley Emerging
o Calvert Socially Markets Equity
Responsible* o EQ/Putnam International
o Capital Guardian Research Equity Index
o Capital Guardian U.S. o T. Rowe Price
Equity International Stock
o Lazard Large Cap Value*
o Merrill Lynch Basic
Value Equity
o MFS Growth with Income
o MFS Research
o EQ/Putnam Growth &
Income Value
o EQ/Putnam Investors
Growth
o T. Rowe Price Equity
Income
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AGGRESSIVE EQUITY
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o Alliance Aggressive Stock o Alliance Small Cap Growth
o EQ/Evergreen o Lazard Small Cap Value*
o Warburg Pincus Small o MFS Emerging Growth
Company Value Companies
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ASSET ALLOCATION OPTIONS:
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o Alliance Conservative o Alliance Balanced
Investors o Alliance Growth
o EQ/Evergreen Foundation Investors
o EQ/Putnam Balanced o Merrill Lynch World Strategy
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*May not currently be available in the State of California.
IN THE "MOMENTUM AT A GLANCE -- KEY FEATURES" SECTION ON PAGE 8 OF THE
PROSPECTUS, THE INFORMATION ABOUT "PROFESSIONAL INVESTMENT MANAGEMENT" IS
MODIFIED AS FOLLOWS:
MOMENTUM's variable investment options invest in 36 different Portfolios managed
by professional investment advisers.
Copyright 1999 The Equitable Life Assurance Society of the United States.
All rights reserved. Momentum Plus is a service mark of
The Equitable Life Assurance Society of the United States.
888-1208
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THE FOLLOWING INFORMATION IS ADDED TO THE FEE TABLE INFORMATION ON PAGE 11 OF
THE PROSPECTUS:
The following are the EQ Advisors Trust annual expenses (as a percentage of
average daily net assets in each new Portfolio):
<TABLE>
<CAPTION>
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TOTAL
OTHER ANNUAL
INVESTMENT EXPENSES EXPENSES
MANAGEMENT (AFTER EXPENSE (AFTER EXPENSE
PORTFOLIOS(1) & ADVISORY FEES 12B-1 FEE(9) LIMITATION) LIMITATION) (10)
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<S> <C> <C> <C> <C>
EQ/Alliance Premier Growth 0.90% 0.25% 0.00% 1.15%
Calvert Socially Responsible 0.65% 0.25% 0.15% 1.05%
Capital Guardian International 0.75% 0.25% 0.20% 1.20%
Capital Guardian Research 0.65% 0.25% 0.05% 0.95%
Capital Guardian U.S. Equity 0.65% 0.25% 0.05% 0.95%
EQ/Evergreen 0.75% 0.25% 0.05% 1.05%
EQ/Evergreen Foundation 0.63% 0.25% 0.07% 0.95%
Lazard Large Cap Value 0.55% 0.25% 0.15% 0.95%
Lazard Small Cap Value 0.80% 0.25% 0.15% 1.20%
MFS Growth with Income 0.55% 0.25% 0.05% 0.85%
EQ/Putnam International Equity 0.70% 0.25% 0.25% 1.20%
EQ/Putnam Investors Growth 0.55% 0.25% 0.15% 0.95%
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</TABLE>
THE FOLLOWING PARAGRAPH IS ADDED AFTER THE FIRST PARAGRAPH OF FOOTNOTE 10 ON
PAGE 13 OF THE PROSPECTUS:
The expense limitations (other than the above expenses and fees) for the new
Portfolios are: 0.90% for EQ/Alliance Premier Growth; 0.80% for Calvert Socially
Responsible; 0.95% for Capital Guardian International; 0.70% for Capital
Guardian Research; 0.70% for Capital Guardian U.S. Equity; 0.80% for
EQ/Evergreen; 0.70% for EQ/ Evergreen Foundation; 0.70% for Lazard Large Cap
Value; 0.95% for Lazard Small Cap Value; 0.60% for MFS Growth with Income; 0.95%
for EQ/Putnam International Equity; and 0.70% for EQ/Putnam Investors Growth.
THE FOLLOWING PARAGRAPH IS ADDED AFTER THE SECOND PARAGRAPH OF FOOTNOTE 10 ON
PAGE 13 OF THE PROSPECTUS:
Absent the expense limitation, the "Other Expenses" for 1998 on an annualized
basis for each of the new Portfolios would have been: 0.40% for Lazard Large Cap
Value; 0.49% for Lazard Small Cap Value; 0.29% for EQ/Putnam Investors Growth;
and 0.51% for EQ/Putnam International Equity. For the following Portfolios, the
"Other Expenses" for 1999, absent the expense limitation, are estimated to be as
follows: 0.74% for EQ/Alliance Premier Growth, 0.43% for Calvert Socially
Responsible; 1.03% for Capital Guardian International; 0.74% for Capital
Guardian Research; 0.74% for Capital Guardian U.S. Equity; 0.76% for
EQ/Evergreen; 0.86% for EQ/Evergreen Foundation; and 0.59% for MFS Growth with
Income. Initial seed capital was invested on December 31, 1998 for the
EQ/Evergreen, EQ/Evergreen Foundation, and MFS Growth with Income Portfolios;
April 30, 1999 for the EQ/Alliance Premier Growth, Capital Guardian
International, Capital Guardian Research, and Capital Guardian U.S. Equity
Portfolios; and August 30, 1999 for the Calvert Socially Responsible Portfolio.
The other Portfolios commenced operations on the following dates: October 1,
1997 for the EQ/Putnam Investors Growth and EQ/Putnam International Equity
Portfolios; and December 31, 1997 for the Lazard Large Cap Value and Lazard
Small Cap Value Portfolios.
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THE FOLLOWING INFORMATION IS ADDED TO THE FEE TABLE EXAMPLES ON PAGE 15 OF THE
PROSPECTUS:
The following examples show the expenses that you would pay in the situations
illustrated. Please refer to page 14 of your prospectus for further explanation
regarding the calculation of the expenses.
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IF YOU SURRENDER YOUR CONTRACT AT THE IF YOU DO NOT SURRENDER YOUR CONTRACT
END OF EACH PERIOD SHOWN, THE AT THE END OF EACH PERIOD SHOWN, THE
EXPENSES WOULD BE: EXPENSES WOULD BE:
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1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
EQ/Alliance Premier Growth $82.77 $142.27 -- -- $27.56 $84.56 -- --
Calvert Socially Responsible $81.78 $139.32 -- -- $26.51 $81.42 -- --
Capital Guardian International $83.27 $143.75 -- -- $28.09 $86.12 -- --
Capital Guardian Research $80.79 $136.36 -- -- $25.47 $78.29 -- --
Capital Guardian U.S. Equity $80.79 $136.36 -- -- $25.47 $78.29 -- --
EQ/Evergreen $81.78 $139.32 -- -- $26.51 $81.42 -- --
EQ/Evergreen Foundation $80.79 $136.36 -- -- $25.47 $78.29 -- --
Lazard Large Cap Value $80.79 $136.36 -- -- $25.47 $78.29 -- --
Lazard Small Cap Value $83.27 $143.75 -- -- $28.09 $86.12 -- --
MFS Growth with Income $79.80 $133.39 -- -- $24.42 $75.14 -- --
EQ/Putnam International Equity $83.27 $143.75 -- -- $28.09 $86.12 -- --
EQ/Putnam Investors Growth $80.79 $136.36 -- -- $25.47 $78.29 -- --
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</TABLE>
THE FOLLOWING REPLACES THE INFORMATION UNDER "VARIABLE INVESTMENT OPTIONS" ON
PAGE 16 OF THE PROSPECTUS:
Your investment results in any one of the 36 variable investment options will
depend on the investment performance of the underlying Portfolios. Listed below
are the currently available Portfolios, their investment objectives, and their
advisers.
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The employer or plan trustee can choose from among 36 variable investment
options. Only 25 funds can be active at any one time. A limit of 45 investment
options can be chosen over the life of the contract.
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THE FOLLOWING INFORMATION IS ADDED TO PAGE 18 OF THE PROSPECTUS:
<TABLE>
<CAPTION>
PORTFOLIOS OF EQ ADVISORS TRUST
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PORTFOLIO NAME OBJECTIVE ADVISER
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<S> <C> <C>
EQ/Alliance Premier Growth Long-term growth of capital Alliance Capital Management L.P.
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Calvert Socially Responsible* Seeks long-term capital appreciation Calvert Asset Management Company, Inc.
and Brown Capital Management, Inc.
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Capital Guardian International Long-term growth of capital by Capital Guardian Trust Company
investing primarily in non-United
States equity securities
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Capital Guardian Research Long-term growth of capital Capital Guardian Trust Company
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Capital Guardian U.S. Equity Long-term growth of capital Capital Guardian Trust Company
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EQ/Evergreen Capital appreciation Evergreen Asset Management Corp.
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EQ/Evergreen Foundation In order of priority, reasonable Evergreen Asset Management Corp.
income, conservation of capital, and
capital appreciation
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Lazard Large Cap Value* Capital appreciation Lazard Asset Management
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Lazard Small Cap Value* Capital appreciation Lazard Asset Management
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MFS Growth with Income Reasonable current income and Massachusetts Financial Services Company
long-term growth of capital and income
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EQ/Putnam International Equity Capital appreciation Putnam Investment Management, Inc.
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EQ/Putnam Investors Growth Long-term growth of capital and any Putnam Investment Management, Inc.
increased income that results from
this growth
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</TABLE>
* Currently is not available in the State of California. Please call our
customer service department at 1-800-528-0204 for information regarding the
availability of this portfolio.
Other important information about the above Portfolios is included in the
separate prospectus supplement for EQ Advisors Trust attached to this
supplement.
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THE FOLLOWING BENCHMARK INFORMATION IS ADDED TO PAGE 51 OF THE PROSPECTUS:
EQ/ALLIANCE PREMIER GROWTH: Standard & Poor's 500 Index.
CALVERT SOCIALLY RESPONSIBLE: Standard & Poor's 500 Index.
CAPITAL GUARDIAN INTERNATIONAL: Morgan Stanley Capital International Europe,
Australia, Far East Index.
CAPITAL GUARDIAN RESEARCH: Standard & Poor's 500 Index.
CAPITAL GUARDIAN U.S. EQUITY: Standard & Poor's 500 Index.
EQ/EVERGREEN: Russell 2000 Index.
EQ/EVERGREEN FOUNDATION: 60% Standard & Poor's 500 Index/40% Lehman Brothers
Aggregate Bond Index.
LAZARD LARGE CAP VALUE: Standard & Poor's 500 Index.
LAZARD SMALL CAP VALUE: Russell 2000 Index.
MFS GROWTH WITH INCOME: Standard & Poor's 500 Index.
EQ/PUTNAM INTERNATIONAL EQUITY: Morgan Stanley Capital International Europe,
Australia, Far East Index.
EQ/PUTNAM INVESTORS GROWTH: Standard & Poor's 500 Index.
THE FOLLOWING IS ADDED TO TABLE 1 ON PAGE 52 OF THE PROSPECTUS:
<TABLE>
<CAPTION>
TABLE 1 (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN FOR A PARTICIPANT TERMINATION ON DECEMBER 31, 1998
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LENGTH OF INVESTMENT PERIOD
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VARIABLE INVESTMENT OPTIONS 1 YEAR SINCE PORTFOLIO INCEPTION PORTFOLIO INCEPTION DATE**
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<S> <C> <C> <C>
Lazard Large Cap Value 9.52% 9.49% 12/31/97
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Lazard Small Cap Value (15.24)% (15.20)% 12/31/97
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EQ/Putnam International Equity 9.49% 9.84% 5/1/97
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EQ/Putnam Investors Growth 25.70% 28.86% 5/1/97
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</TABLE>
THE FOLLOWING FOOTNOTE IS ADDED AFTER THE FOOTNOTE ON PAGE 52 OF THE PROSPECTUS:
** The inception dates for the Portfolios that became available on or after
December 31, 1998 and are therefore not shown in any of the tables are:
EQ/Evergreen, EQ/Evergreen Foundation, and MFS Growth with Income (December
31, 1998); EQ/Alliance Premier Growth, Capital Guardian International,
Capital Guardian Research, and Capital Guardian U.S. Equity (April 30, 1999);
and Calvert Socially Responsible (August 30, 1999).
THE FOLLOWING IS ADDED TO TABLE 2 ON PAGE 53 OF THE PROSPECTUS:
<TABLE>
<CAPTION>
TABLE 2 (CONTINUED)
GROWTH OF $1,000 UNDER A CONTRACT TERMINATED ON DECEMBER 31, 1998
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LENGTH OF INVESTMENT PERIOD
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VARIABLE INVESTMENT OPTIONS 1 YEAR SINCE PORTFOLIO INCEPTION*
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<S> <C> <C>
Lazard Large Cap Value $1,095.16 $1,095.16
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Lazard Small Cap Value $847.63 $847.63
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EQ/Putnam International Equity $1,094.87 $1,169.75
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EQ/Putnam Investors Growth $1,256.95 $1,527.69
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</TABLE>
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THE FOLLOWING IS ADDED TO TABLE 3 ON PAGE 55 OF THE PROSPECTUS:
TABLE 3 (CONTINUED)
ANNUALIZED RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1998
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1 YEAR SINCE PORTFOLIO INCEPTION*
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Lazard Large Cap Value 17.86% 17.86%
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Lipper Capital Appreciation 24.16% 24.16%
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Benchmark 28.58% 28.58%
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Lazard Small Cap Value (8.58)% (8.58)%
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Lipper Small Cap 1.53% 1.53%
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Benchmark (2.54)% (2.54)%
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EQ/Putnam International Equity 17.83% 15.49%
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Lipper International 12.17% 9.06%
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Benchmark 20.00% 13.43%
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EQ/Putnam Investors Growth 34.36% 34.57%
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Lipper Growth 25.82% 28.73%
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Benchmark 28.58% 31.63%
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THE FOLLOWING IS ADDED TO TABLE 4 ON PAGE 57 OF THE PROSPECTUS:
TABLE 4 (CONTINUED)
CUMULATIVE RATES OF RETURN FOR PERIODS ENDED DECEMBER 31, 1998
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1 YEAR SINCE PORTFOLIO INCEPTION*
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Lazard Large Cap Value 17.86% 17.86%
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Lipper Capital Appreciation 24.16% 24.09%
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Benchmark 28.58% 28.58%
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Lazard Small Cap Value (8.58)% (8.58)%
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Lipper Small Cap 1.53% 1.53%
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Benchmark (2.54)% (2.54)%
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EQ/Putnam International Equity 17.83% 27.16%
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Lipper International 12.17% 15.88%
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Benchmark 20.00% 23.42%
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EQ/Putnam Investors Growth 34.36% 64.12%
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Lipper Growth 25.82% 52.86%
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Benchmark 28.58% 57.60%
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THE FOLLOWING IS ADDED TO TABLE 5 ON PAGE 58 OF THE PROSPECTUS:
TABLE 5 (CONTINUED)
YEAR-BY-YEAR RATES OF RETURN
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1998
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Lazard Large Cap Value 17.86%
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Lazard Small Cap Value (8.58)%
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EQ/Putnam International Equity 17.83%
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EQ/Putnam Investors Growth 34.36%
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(2) THE EQUITABLE COMPANIES INCORPORATED NAME CHANGE
THE FOLLOWING SENTENCE REPLACES THE LAST SENTENCE OF THE FIRST PARAGRAPH ON PAGE
5 OF THE PROSPECTUS:
In September 1999, The Equitable Companies Incorporated plans to change its name
to "AXA Financial, Inc."
(3) CHANGE IN EQ ADVISORS TRUST MANAGEMENT
THE FOLLOWING PARAGRAPH IS ADDED AFTER THE SECOND PARAGRAPH UNDER "ABOUT THE
HUDSON RIVER TRUST AND EQ ADVISORS TRUST" ON PAGE 45 OF THE PROSPECTUS:
In September 1999, Equitable Life will become the manager of EQ Advisors Trust
following state regulatory approvals. As manager, Equitable Life will oversee
the activities of the investment advisers with respect to EQ Advisors Trust.
Equitable Life will be responsible for retaining or discontinuing the services
of the advisers. Currently, EQ Financial Consultants, Inc. is the manager of EQ
Advisors Trust.
(4) EQ FINANCIAL CONSULTANTS, INC. NAME CHANGE
THE FOLLOWING SENTENCE REPLACES THE LAST SENTENCE OF THE LAST PARAGRAPH ON PAGE
13 OF THE PROSPECTUS:
By year end 1999, EQF plans to become "AXA Advisors, LLC," and will become an
indirect subsidiary of AXA Financial, Inc.
(5) ABOUT OUR YEAR 2000 PROGRESS
THE FOLLOWING INFORMATION REPLACES THE INFORMATION UNDER "ABOUT OUR YEAR 2000
PROGRESS" ON PAGE 48 OF THE PROSPECTUS:
Equitable Life relies upon various computer systems in order to administer your
contract and operate the investment options. Some of these systems belong to
service providers who are not affiliated with Equitable Life.
In 1995, Equitable Life began addressing the question of whether its computer
systems would recognize the year 2000 before, on or after January 1, 2000, and
Equitable Life has identified those of its systems critical to business
operations that were not year 2000 compliant. Equitable Life has completed the
work of modifying or replacing non-compliant systems and has confirmed, through
testing, that its systems are year 2000 compliant. Equitable Life has contacted
third-party vendors and service providers to seek confirmation that they are
acting to address the year 2000 issue with the goal of avoiding any material
adverse effect on services provided to contract owners and on operations of the
investment options. All third-party vendors and service providers considered
critical to Equitable Life's business have provided us with confirmation of
their year 2000 compliance or a satisfactory plan for compliance. With respect
to vendors and service providers considered non-critical, we believe we are on
schedule for substantially all such vendors and service providers to be
confirmed by September 30, 1999 as year 2000 compliant or the subject of a
satisfactory plan for compliance. If such confirma-
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tion is not received by September 30, 1999, the vendor or service provider will
be replaced, eliminated or the subject of contingency plans. Additionally,
Equitable Life has supplemented its existing business continuity and disaster
recovery plans to cover certain categories of contingencies that could arise as
a result of year 2000 related failures.
There are many risks associated with year 2000 issues, including the risk that
Equitable Life's computer systems will not operate as intended. Additionally,
there can be no assurance that the systems of third parties will be year 2000
compliant. Any significant unresolved difficulty related to the year 2000
compliance initiatives could result in an interruption in, or a failure of,
normal business operations and, accordingly, could have a material adverse
effect on our ability to administer your contract and operate the investment
options.
To the fullest extent permitted by law, the foregoing year 2000 discussion is a
"Year 2000 Readiness Disclosure" within the meaning of The Year 2000 Information
and Readiness Disclosure Act (P.L. 105-271) (1998).
