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May 2010

Enrollment: Alameda County Deferred Compensation Plan. Alameda County Deferred Compensation Plan. May 2010. INST-20081201-A023892 RS.PP.080 Edition 6/2007 Updated 12/2008. # 84. 668. 135 Yrs. 3.6 Mil. Why Prudential. How Prudential Can Help.

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May 2010

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  1. Enrollment: Alameda County Deferred Compensation Plan Alameda County Deferred Compensation Plan May 2010 INST-20081201-A023892 RS.PP.080 Edition 6/2007 Updated 12/2008

  2. #84 668 135 Yrs. 3.6 Mil. Why Prudential How Prudential Can Help Ranked #84in the Fortune 500 List of America’s Largest Corporations $668 billion in assets under management as of December 31, 2009 Helping people achieve financial security for over 135 years Serving over 3.6 million participantsand annuitants All data as of December 31, 2009

  3. High Risk/High Potential Return Global/ International Stock Balanced Small-Cap Stock Mid-Cap Stock Large-CapStock R E T U R N Stability Income Growth Fixed- Income Stable Value Low Risk/Low Potential Return R I S K Investment Categories

  4. Market risk Market Risk This example is for illustrative purposes only and is not intended to represent the performance of any specific investment. For information about the funds offered in your plan, please refer to the Fund Fact Sheets. Indexes are unmanaged; invesments cannot be made directly to an index.

  5. Investments Stable Value • Stable Value Fund Fixed Income • Prudential MoneyMart Assets • Delaware Diversified Income Fund • Oppenheimer Strategic Income Fund • Medley Diversified Bond Account (VCA-24) • Medley Government Income Account (VCA-24) Balanced • American Funds American Balanced R3

  6. Investments Large-Cap • Allianz NFJ Dividend Value A • American Funds Fundamental Invs R3 • Davis NY Venture Fund A • Prudential Stock Index Fund I • American Funds Growth Fund of America R3 • Franklin Flex Cap Growth Fund • Prudential Jennison Growth Fund Z • Medley Capital Growth Account (VCA-10) • Medley Equity Account (VC-24)

  7. Investments Mid-Cap • Goldman Sachs Mid Cap Value Fund A • Lord Abbett Mid Cap Value Fund • Ariel Appreciation Fund • Prudential Jennison Mid Cap Growth Fund Z Small-Cap • Delaware Small Cap Value Fund A • Prudential Jennison Small Company Fund

  8. Investments Global / International • Templeton World Fund • AllianceBernstein Global Thematic Growth A • American Funds EuroPacific Growth Fund R3 • Mutual European Fund • Templeton Developing Markets Trust Other • BlackRock Health Sciences Portfolio

  9. Fund Fact Sheet User’s Guide

  10. What is GoalMaker? • Optional asset allocation program adopted by your employer • Helps target the investment options best suited to your retirement goal • Uses investment options offered by your retirement program • 12 diversified portfolios, based on various risk tolerances and time horizons Application of asset allocation and diversification concepts does not ensure safety of principal and interest. It is possible to lose money by investing in securities.

  11. GoalMaker Investor Type

  12. Your Asset Allocation The asset allocation models are provided as samples and not as investment recommendations. The model portfolios are based on generally accepted investment practices and take into account the principles of modern portfolio theory, in which allocations are adjusted in an effort to achieve maximum returns for a given level of risk. You may want to consider other assets, income, and investments you may have before applying these models to your individual situation. Consult the prospectus for information about how the portfolio manager invests the assets of any particular investment option. Proposed allocations assume a retirement withdrawal period of 15 years. Past performance of investments or asset classes does not guarantee future results.

  13. GoalMaker Portfolios Application of asset allocation and diversification concepts does not ensure safety of principal and interest. It is possible to lose money by investing in securities. The GoalMaker portfolios are subject to change including, for example, the replacement of investment options and allocations within the portfolios. You will be notified in writing in advance of such changes.

  14. GoalMaker Automatic Rebalancing Changes due to market fluctuation Original portfolio Application of asset allocation and diversification concepts does not ensure safety of principal and interest. It is possible to lose money by investing in securities.

  15. GoalMaker – Age Adjustment Paul Age:25/Just out of school • His Investor Profile • Conservative Investor • 16+ Years to Retirement Application of asset allocation and diversification concepts does not ensure safety of principal and interest. It is possible to lose money by investing in securities.

  16. GoalMaker – Age Adjustment Paul Age:50/Thinking about retirement • His Investor Profile • Still a Conservative Investor • 15 Years to Retirement Application of asset allocation and diversification concepts does not ensure safety of principal and interest. It is possible to lose money by investing in securities.

  17. GoalMaker Investor Type Optional Exercise

  18. Retirement Facts • The biggest misconception about retirement is that it is purely a function of age • Only 18% of the current workforce is very confident about having enough money to live comfortably in retirement* • Inflation will affect your savings . *Source: 1993-2008 Retirement Confidence Survey - Employee Benefit Research Institute

  19. Why Save in a Retirement Plan • You pay less in current federal taxes today • Compounding helps your money grow • Your money worksharder for you • Saving iseasy • Choose from avarietyof investments offered by the program The compounding concept is hypothetical and for illustrative purposes only and is not intended to represent performance of any specific investment, which may fluctuate. No taxes are considered in the calculations; generally withdrawals are taxable at ordinary rates. It is possible to lose money by investing in securities.

  20. 80% Retirement Income Needs Of your current income

  21. Susan Retirement Income Needs Example: Susan (in workforce 15 years) Susan’s pre-retirementincome:$30,000 Applying the 80% rule, she’ll need $24,000each year of retirement Assuming she retires at age 65 and lives toage 85, she’ll need: $480,000

  22. Sources of Retirement Income Other Social Security Retirement Savings 3% 17% 37% 15% Personal Savings 28% Earnings Source: Data for 2006 are Social Security Administration calculations from the March 2007 Annual Social and Economic Supplement to the Current Population Survey.

  23. Your Program Highlights • Eligibility • How your money goes in • How your money comes out

  24. Example: Terry Pay: $30,000 Filing Status:Single $4,500 $4,000 Saves 6%:$1,800 per year $3,500 $3,000 $0 Federal Income Tax Paid* Reason to Participate Now The Potential to Pay Less in Federal Income Tax A savings of $270 at tax time $4,099 $3,829 Not Participating Participating *Based on 2008 Internal Revenue Service Tax Table. It considers, no other income, deductions, exemptions or taxes.

  25. $100k $75k 50k $25k $0 At Retirement-Age 65 Reason to Participate Now Compounding Interest A difference of $47,266 at age 65 $89,716 Example: Carla Age: 25 Saves: $35 per month Example: Beth Age: 35 Saves: $35 per month $42,450 Carla Beth Assumes 7% interest. The compounding concept is hypothetical and for illustrative purposes only and is not intended to represent performance of any specific investment, which may fluctuate. No taxes are considered in the calculations; generally withdrawals are taxable at ordinary rates. It is possible to lose money by investing in securities.

  26. A Little Can Make A Difference $46,114 $456.25 per year $8.75 per week $1.25 per day Assumes 7% interest over a period of 30 years. The compounding concept is hypothetical and for illustrative purposes only and is not intended to represent performance of any specific investment, which may fluctuate. No taxes are considered in the calculations; generally withdrawals are taxable at ordinary rates. It is possible to lose money by investing in securities.

  27. How Much is Enough? Gross Pay Per Paycheck $300 $500 $700 $1500 3% Contribution Amount 9 15 21 45 Take-home pay reduced by 7 11 15 33 Estimated Tax Advantage* 2 4 6 12 7% Contribution Amount 21 35 49 105 Take-home pay reduced by 15 26 36 77 Estimated Tax Advantage* 6 9 13 28 9% Contribution Amount 27 45 63 135 Take-home pay reduced by 20 33 46 99 Estimated Tax Advantage* 7 12 17 36 You can review your own paycheck impact using our paycheck impact calculator on Prudential’s Retirement Education and Planning Site: http://www.prudential.com/PREP/tools Prudential Financial is not a legal or tax adviser and encourages you to consult your individual legal or tax adviser with any specific questions. *Based on a 28% Federal tax rate

  28. Enroll by completing the enrollment forms in the back of the Prudential Retirement Workbook Learnmore about planning for retirement at www.prudential.com/prep Reevaluateyour plan at least once per year Next Steps

  29. Rollover Contributions

  30. Beneficiary Designation

  31. Your Account Tools

  32. Easy Input

  33. Straight Forward Results

  34. On-Going Maintenance

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