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Monday, October 10, 2005

Lincoln National and Jefferson Pilot Announce Merger

BREAKING - Former Fort Wayne-based Lincoln Financial Group and Jefferson Pilot Financial announced this morning that the two insurance giants will merge. The companies have established a special website regarding the merger.

The remaining company will be known as Lincoln Financial Group. The deal is valued at approximately $7.5 billion according to a news release by law firm King & Spaulding, which is representing Jefferson Pilot in the merger.

Lincoln Financial Group becomes a media company with the new acquisition. Jefferson Pilot also owns Jefferson Pilot Communications which owns TV stations in major southeastern markets, 18 radio stations in top 50 markets and Jefferson Pilot Sports, a television production company.

From the company press release:
PHILADELPHIA, PA and GREENSBORO, NC, October 10, 2005 - Lincoln National Corporation (NYSE: LNC), the parent company of the Lincoln Financial Group of companies, and Jefferson-Pilot Corporation (NYSE: JP), the parent of the Jefferson Pilot Financial group of companies, today announced that they have entered into a definitive merger agreement, unanimously approved by both companies' boards of directors. The merged company, which will operate under the brand name of Lincoln Financial Group, will be a premier provider of life insurance, annuity, retirement income and investment products and services, supported by top-tier retail and wholesale distribution platforms that provide industry-leading financial products and solutions.

Terms of the Transaction

The terms of the merger were negotiated to provide Jefferson Pilot shareholders with an 11% premium based on the average closing prices of each company's common stock from September 7, 2005 to October 7, 2005. Jefferson Pilot shareholders will receive 1.0906 Lincoln shares or $55.96 in cash for each Jefferson Pilot share, subject to proration. The aggregate amount of the cash payment to Jefferson Pilot shareholders will equal $1.8 billion. This represents a total blended cash and stock consideration of $55.48 per share based on the October 7, 2005 closing price of Lincoln Financial Group common stock and total consideration of approximately $7.5 billion.

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