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Genworth Financial Subsidiary Insurance Companies Launch IRA Variable Annuity

RetireReady(SM) IRA Annuity Product Offers Familiarity and Flexibility for Pre-retirees, Other Consumers
RICHMOND, Va., June 30, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- Genworth Life and Annuity Insurance Company and Genworth Life Insurance Company of New York, subsidiaries of Genworth Financial, Inc. (NYSE: GNW), have launched a new RetireReady(SM) IRA Annuity product. The IRA Annuity is a new retirement product that successfully combines the traditional benefits of an IRA with the ability to provide a guaranteed income stream that only an annuity can provide. This contract can only be issued as, and must be maintained as, an IRA, Roth IRA or SEP IRA contract or within such qualified accounts.

The new product is insurance with underlying portfolios that include well-known retail mutual funds. Retail mutual funds have until now only been available within a very small number of variable annuities, and with limited distribution. The IRA Annuity is targeted for all major financial advisor channels of distribution. Financial advisors have confidence in knowing the portfolio management stories behind certain mutual funds, so the retail mutual fund feature should be well received.

Our RetireReady IRA Annuity product is another example of our innovation in the retirement and planning space, said Christopher J. Grady, President of Genworth's Retirement Income division. While conventional IRAs are a smart way to build savings over time, they don't offer the protection of insurance products or pension-like guaranteed levels of income as retirement approaches; only annuities can provide guaranteed lifetime income. The RetireReady IRA Annuity fills a critical consumer demand that assures income will last a lifetime with the potential for growth over time.

Confidence is a primary theme in the retirement planning arena. The 2008 Retirement Confidence Survey from the Employee Benefits Research Institute (EBRI) reported the largest one-year drop in consumer confidence levels in the 18-year history of the survey. The percentage of workers very confident about having enough money for a comfortable retirement decreased sharply, from 27 percent in 2007 to 18 percent in 2008. Retiree confidence in having a financially secure retirement also decreased, from 41 percent to 29 percent, a drop of 12 percentage points. Decreases in confidence occurred across all age groups and income levels.

Simplicity: Insurance with Differentiated Investments

The IRA Annuity's primary feature of interest to advisors is an investment subaccount structure utilizing a diverse selection of retail mutual funds. The retail mutual funds take the place of more traditional variable insurance trusts, which unlike retail mutual funds are available only within insurance company products. In addition to this investment structure, a lifetime income guarantee can be added through an optional lifetime withdrawal benefit rider. All guarantees are based on the claims-paying ability of the issuing insurance company and depend on all contract requirements being satisfied. Guarantees do not apply to the performance of the underlying investment portfolios. The underlying portfolios will fluctuate and could lose value.

The variable annuity marketplace has become increasingly complex and confusing, Grady said. Our IRA Annuity mitigates some of that complexity and offers pre-retirees the best of both worlds -- ways to protect their IRAs with insurance while tapping into the long-term upside potential of the equity markets as they age. The IRA Annuity can help meet their needs with funds they already know.

The IRA Annuity includes 57 funds from 26 well-known fund managers, including Calamos, Thornburg, Franklin Templeton, Columbia, T. Rowe Price and many others. Many of these retail funds have institutional counterparts available within other insurance products, but several funds have limited or no availability within an annuity product anywhere else. Those funds include Calamos Growth, Eaton Vance Large Cap Value, Fidelity Advisor Leveraged Company Stock, Fidelity Advisor New Insights, Columbia Mid-Cap Value, Columbia Acorn, Thornburg Core Growth and Thornburg International Value.

Other benefits include:

-- Advisor Confidence: Since financial advisors have confidence in knowing the portfolio management stories behind certain mutual funds, this product allows them to continue using those funds with the continued tax deferral of an IRA, but now with the added death benefit features of a variable annuity, and the option of a guaranteed lifetime withdrawal benefit rider designed to protect clients' future income.

-- Optional Lifetime Withdrawal Benefit: Clients can receive guaranteed income to last a lifetime through Genworth's popular optional living benefit rider called Lifetime Income Plus 2008. Lifetime Income Plus 2008, a guaranteed minimum withdrawal benefit, is among industry leaders in the high level of guaranteed withdrawal factors.

-- Two Surrender Options: At the time of application, consumers have the option of choosing a seven-year surrender charge schedule with a combined annual mortality and expense charge and administrative expense of 1.35%, or a four-year surrender charge schedule for 1.65%, plus portfolio management fees.

Financial advisors and consumers interested in getting additional information about the RetireReady IRA Annuity can visit .

The Genworth family of companies has a growing line of products that bring guaranteed lifetime income benefits to traditional investment options. In 2005, Genworth Life & Annuity launched ClearCourse(SM), a retirement income benefit option available in a 401(k). Most recently, Genworth Life & Annuity premiered LifeHarbor(SM), an annuity with a guaranteed income benefit available for managed money accounts and currently offered through AssetMark Investment Services, Inc., a Genworth Financial company.

Variable annuities are sold by prospectuses for the product and underlying investment portfolios. The prospectuses contain information on the investment objectives, risk factors, fees and charges, as well as other important information about the product and investment companies, that should be carefully considered. Please read the prospectuses carefully before investing. You can obtain prospectuses by calling 888-GENWORTH (888.436.9678).

RetireReady(SM) IRA Annuity is one of Genworth Life and Annuity Insurance Company's flexible premium variable deferred annuities, policy form contract P1165 4/05. Optional death benefit rider P5222 1/03. Optional living benefit rider P5362 9/07 and P5362DB 9/07.

RetireReady(SM) IRA Annuity NY is Genworth Life Insurance Company of New York's flexible premium variable deferred annuity, policy form contract NY1166C 1/08 and NY1166D 1/08. Optional death benefit rider NY5237 1/03. Optional living benefit rider NY5362 9/07 and NY5362DB 9/07.

Products and/or riders may not be available in all states or markets. Features and benefits may vary by state or market.

Principal Underwriter: Capital Brokerage Corporation (dba Genworth Financial Brokerage Corporation in Indiana), 6620 West Broad Street, Building 2, Richmond, VA 23230. Member FINRA/SIPC.

Genworth Life & Annuity is licensed in all states except New York. Only Genworth Life of New York is licensed in New York.

Genworth Life & Annuity, Genworth Life of New York and Capital Brokerage Corporation are members of Genworth Financial, Inc.

About Genworth Financial

Genworth Financial, Inc. (NYSE: GNW) is a leading public Fortune 500 global financial security company. Genworth employs approximately 7,000 people worldwide. Its products and services help meet the investment, protection, retirement and lifestyle needs of over 15 million customers in more than 25 countries. Genworth operates through three segments: Retirement and Protection, International and U.S. Mortgage Insurance. Its products and services are offered through financial intermediaries, advisors, independent distributors and sales specialists. Genworth Financial, which traces its roots back to 1871, became a public company in 2004 and is headquartered in Richmond, Virginia. For more information, visit

Cautionary Note Regarding Forward-Looking Statements

This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to our plans, objectives, expectations and intentions and other statements contained in this release that are not historical facts as well as statements identified by words such as expects, anticipates, intends, plans, believes, seeks, estimates, or words of similar meaning. These statements are based on our current beliefs or expectations and are inherently subject to significant uncertainties and changes in circumstances, many of which are beyond our control. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors.

SOURCE Genworth Financial, Inc.

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