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This document is dated May 2, 2006. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

Forward-Looking Statements — Cautionary Language

Lincoln Financial Group Reports First Quarter 2006 Earnings

Strong Organic Growth Characterizes Quarter

Topics: | Lincoln Retirement  | Life Insurance  | Investment Management  | Lincoln UK  | Corporate and Other  | Capital and Share Repurchase  | Merger  | Reconciliation Table  | Digest of Earnings  |

PHILADELPHIA, May 2, 2006 — Lincoln National Corporation (NYSE:LNC) today reported net income of $221.2 million, or $1.24 per diluted share for the first quarter of 2006. By comparison, net income for the first quarter of 2005 was $178.9 million, or $1.01 per diluted share.

Income from operations for the first quarter of 2006 was $221.8 million, or $1.25 per diluted share, compared with $172.5 million, or $0.98 per diluted share, in the first quarter of 2005. Return on equity (ROE), based on income from operations, for the quarter was 14.9%. The attached table defines and reconciles income from operations and ROE, non-GAAP measures, to net income and ROE calculated in accordance with GAAP.

Consolidated domestic retail deposits, which include annuities, mutual funds, life insurance and other personal wealth accumulation products, reached a record $7.0 billion, up 12% over the first quarter of 2005. Lincoln reported consolidated retail net flows for the quarter of $2.7 billion, up 3% from the prior year quarter. Institutional deposits were $4.8 billion for the quarter with $3.6 billion in net flows, both up over 150% from the 2005 quarter. Consolidated assets under management grew to $183 billion.

"Despite a crowded field of competitors in the retirement and asset management marketplace, Lincoln continued to capture marketshare through industry-leading products, top-tier investment management performance, and wholesaling excellence," said Jon A. Boscia, chairman and chief executive officer of Lincoln Financial Group.

Lincoln Retirement

First quarter income from operations for the Lincoln Retirement segment was $123.1 million versus $98.6 million for the same period a year ago. The current quarter's results were driven by a 17% increase in account value versus the prior year period and contained approximately $9 million, after tax, of favorable items, primarily related to higher than expected investment income and hedge performance.

In the quarter, record variable annuity deposits of $2.4 billion fueled record gross deposits and net flows of $2.9 billion and $858 million, respectively. The company's multi-manager variable annuity, Lincoln Choice PlusSM, posted a 38% increase in deposits over the first quarter of 2005, while Lincoln's single-manager variable annuity, American Legacy®, increased 17%, as both achieved record sales in the current quarter.

"Consecutive quarters of strong deposits and net flows lifted account values and related revenues, which were also aided by favorable equity markets and outperformance in our variable annuities' sub-accounts, relative to the S&P 500 index" said Boscia.

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Life Insurance

Life Insurance income from operations was $82.2 million, compared to $67.7 million in the first quarter of 2005. The 2006 quarter benefited from approximately $3 million of net positive items, including favorable mortality and better than expected investment income. The prior year quarter was impacted by approximately $4 million, after tax, of unfavorable mortality and negative unlocking of deferred acquisition costs (DAC).

First year premiums from retail life insurance increased 14% in the quarter as compared to the prior year quarter, driven by strong universal life sales. Premiums in the 2005 quarter were negatively impacted by competitive market conditions and Lincoln's proactive stance against participating in the sale of investor-owned life insurance products.

"Lincoln's differentiated and expanded wholesaling model continued to gain traction. As an example, life sales in the wirehouse channel were up 31% over the first quarter of 2005," said Boscia.

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Investment Management

Investment Management reported income from operations of $20.3 million for the quarter, compared with $7.4 million for the same period a year ago. In the current quarter, earnings benefited from a 43% increase in third-party advisory fee revenue over the first quarter of 2005 and, together with enhanced expense management, contributed to margin expansion.

Strength in both the retail and institutional businesses over the quarter boosted total deposits to $8.6 billion and net flows to $5.0 billion. Retail deposits were $3.8 billion, marking five consecutive quarters of retail deposits in excess of $3 billion.

"With most of Delaware's recent talent-related expenses behind them and as third-party assets under management grew almost 50% over the prior year period, the segment's earnings potential was evident this quarter," said Boscia.

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Lincoln UK

For the first quarter, the UK segment's income from operations was $10.7 million, which compares with $10.0 million in the first quarter of 2005. Current quarter results reflect the positive impact of equity markets, as the FTSE 100 index ended the quarter up 22% compared to a year ago, offsetting the natural run-off in the block of business.

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Corporate and Other

Corporate and Other recorded an operating loss for the first quarter of $14.5 million, versus $11.2 million in the first quarter of 2005. Distribution losses were $9.8 million in the first quarter of 2006 versus $13.6 million a year ago, benefiting from increased operating efficiency. In the 2006 quarter, the Corporate and Other results benefited from approximately $3 million of favorable expense-related items. The first quarter of 2005 included a positive $5.8 million adjustment from a reduction in the deferred tax asset valuation allowance previously established in the company's Barbados subsidiary.

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Capital and Share Repurchase

As of March 31, 2006, the book value of Lincoln National Corporation common stock, excluding accumulated other comprehensive income, was $34.37, compared with $30.85 a year ago. Book value, including accumulated other comprehensive income, was $35.99, compared with $34.74 a year ago. Although Lincoln did not repurchase shares in the first quarter of 2006, the company entered into an accelerated share repurchase program on April 3, 2006, and as a result, retired approximately 8 million shares on April 10, 2006. The program is expected to be completed in the third quarter of 2006 and the total number of shares repurchased will be between approximately 8 and 9 million.

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Lincoln Financial Group and Jefferson Pilot Financial Merger

Lincoln and Jefferson Pilot completed the merger on April 3, 2006. Upon closing, Lincoln issued approximately 112 million shares of common stock and funded the $1.8 billion in cash through its bridge loan facility. Since the close of the merger, Lincoln has raised $1 billion in senior debt and $275 million in capital securities to refinance a majority of the funds borrowed under its bridge loan facility.

"A central pillar of our integration plan is to minimize distractions in product delivery, customer service, and product platforms, setting the stage for revenue synergies and organic growth," said Boscia. "The resilient results in the first quarter are evidence that we are on track."

Dennis Glass, president and chief operating officer for Lincoln, added, "As we move from integrating operations to executing on a single platform, I am excited about our ability to drive growth and shareholder returns through our combined product portfolio and enhanced distribution platform. I look forward to carrying this quarter's strong results into our first quarter as a unified company."

Lincoln National Corporation will discuss the company's first quarter results with investors in a conference call beginning at 11:00 a.m. (ET) on Wednesday, May 3, 2006. The company will also post its first quarter 2006 statistical supplement on its Web site, www.LFG.com. Included as an addendum to Lincoln's statistical supplement, a summary of Jefferson Pilot's first quarter 2006 financial results will be posted on www.LFG.com.

Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. With headquarters in Philadelphia, Lincoln Financial Group had consolidated assets of $128 billion as of March 31, 2006, and had annual consolidated revenues of $5.5 billion in 2005. As of April 3, 2006, the company offers: annuities; life, group life and disability insurance; 401(k) and 403(b) plans; savings plans; mutual funds; managed accounts; institutional investments; and comprehensive financial planning and advisory services. Company affiliates include: Lincoln Financial Distributors, which provides wholesaling and marketing support; Lincoln Financial Advisors, a national network of financial planners, agents, and registered representatives; Delaware Investments, the marketing name for Delaware Management Holdings, Inc. and its subsidiaries; Lincoln Financial Media, which owns and operates three television stations, 18 radio stations, and the Lincoln Financial Sports production and syndication business; and Lincoln UK. For more information please visit www.LFG.com.


Investor Contacts:
Jim Sjoreen
215 448-1420
E-mail: InvestorRelations@LFG.com

Media Contact:
Laurel O'Brien
215 255-1520
E-mail: MediaRelations@LFG.com


Financial data will be posted at www.LFG.com/investor


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Hello future.
Lincoln Financial Group is the marketing name for Lincoln National Corporation and insurance
company affiliates, including The Lincoln National Life Insurance Company, Fort Wayne, IN,
and in New York, Lincoln Life & Annuity Company of New York, Syracuse, NY. Variable products
distributed by broker/dealer-affiliate Lincoln Financial Distributors, Inc., Radnor, PA. Securities
and investment advisory services offered through other affiliates. Explore Lincoln.