Nationwide Financial to Repurchase $200 Million of Its Class B Common Stock

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Nationwide Financial to Repurchase $200 Million of Its Class B Common Stock

    COLUMBUS, Ohio, Dec. 1 /PRNewswire/ -- Nationwide Financial Services,
Inc. (NYSE: NFS) and Nationwide Corporation today announced that on Nov.
27, 2006, Nationwide Financial entered into an agreement with Nationwide
Corporation to repurchase 3,855,050 shares of its Class B common stock for
a total purchase price of $200 million. The shares will be purchased at a
price of $51.88 per share, which represents the five-day average closing
price of Nationwide Financial's Class A common stock on the New York Stock
Exchange from Monday, Nov. 27 through Friday, Dec. 1, 2006. The repurchase
is expected to close on Monday, Dec. 4, 2006.
    Class A common stock is held by the public, while the Class B common
stock is entirely held by Nationwide Corporation.
    "This transaction represents a very effective use of capital that will
drive value creation for shareholders, and reflects our confidence in the
long-term outlook for Nationwide Financial," said Mark Thresher, president
and chief operating officer of Nationwide Financial. "It also underscores
our commitment to deploy capital in ways that will enhance shareholder
returns."
    "Nationwide Financial is an important strategic investment for
Nationwide Corporation," said Robert Rosholt, chief financial officer of
Nationwide Corporation and Nationwide Mutual Insurance Company, its parent
company. "This transaction demonstrates Nationwide Financial's capital
management discipline while allowing Nationwide Corporation to maintain its
substantial ownership position."
    To date, Nationwide Financial has repurchased approximately $462
million of its common stock, leaving $38 million available for future
repurchases under the current share repurchase authorization. Including the
reduction in Class B shares that will result from this transaction,
Nationwide Financial has 91,778,717 shares of Class B common stock
outstanding as of Dec. 1, 2006.
    Following the transaction, Nationwide Corporation will own 62.8 percent
of the outstanding common shares of Nationwide Financial(1).
    About Nationwide Financial
    Nationwide Financial Services, Inc. (NYSE: NFS), a publicly traded
company based in Columbus, Ohio, provides a variety of financial services
that help consumers invest(2) and protect their long-term assets, and
offers retirement plans and services through both public- and
private-sector employers.
    It's part of the Nationwide group of companies, which offers
diversified insurance and financial services. The group is led by
Nationwide Mutual Insurance Company, which is ranked No. 98 on the Fortune
100 based on 2005 revenue(3). To obtain investor materials, including the
Company's 2005 Annual Report to Shareholders, 2005 Annual Report on Form
10-K, quarterly statistical supplements and other corporate announcements,
please visit the investor relations section of the Company's Web site at
http://www.nationwide.com.
    Nationwide, Nationwide Financial and the Nationwide Framemark are
federally registered service marks of Nationwide Mutual Insurance Company.
On Your Side is a service mark of Nationwide Mutual Insurance Company.
     (1) Ownership percentage is approximated based on the number of
         outstanding Class A common stock shares as of Oct. 27, 2006.
     (2) Nationwide Investment Services Corporation, member NASD.  In MI only:
         Nationwide Investment Svcs. Corporation.
     (3) Fortune Magazine, April 2006

SOURCE Nationwide Financial Services, Inc.

http://www.nationwidefinancial.com/

http://www.prnewswire.com/comp/607050.html/
CONTACT:
Mark Barnett, +1-614-677-5331, or
barnetj5@nationwide.com, or Erica Lewis, +1-614-249-0184, or
lewise6@nationwide.com, both of Nationwide