Press Release

Release No. 0706-03
July 31, 2006

PROVIDERS WILL OFFER
LESS COSTLY VARIABLE ANNUITIES
THROUGH RAYMOND JAMES

ST. PETERSBURG, Fla. - Nine of the 18 insurance firms that provide variable annuities available through financial advisors affiliated with Raymond James Financial, Inc. will begin offering their new, less expensive investment products today, meeting a Raymond James deadline.

Raymond James studied variable annuities as an investment, taking into account criticism that they had become too costly and so complex that purchasers find them difficult to understand. In an unprecedented move for the financial services industry, the firm offered to take a reduced commission in order to allow its insurance partnersto reduce client costs. In addition, Raymond James’ new product design will simplify the productwhile still retaining typical standard and optional benefits.

“Raymond James is to be commended for taking a very pro-consumer approach to the sale of variable annuity products,” said Mark Mackey, president and CEO of the National Association for Variable Annuities.

Companies meeting the July 31 deadline were Genworth Life and Annuity Insurance Company, Integrity Life Insurance Company, Jackson National Life Insurance Company, John Hancock Life Insurance Company (U.S.A.), Nationwide Life Insurance Company, Ohio National Life Insurance Company, Pruco Life Insurance Company /American Skandia, Protective Life and Transamerica Life Insurance Company.

Scott Stolz, president of Raymond James’ insurance and annuity general agency, emphasized that after a 60-day transition period, the firm’s 4,800 financial advisors will no longer offer variable annuities that do not meet the new fee and commission requirements. Stolz said he was pleased that nine companies had their new products ready by July 31. “Not surprisingly, it is no small task to coordinate a launch date with 18 different insurance companies, so we are happy that nine are ready now. By the end of September, we expect to add four more carriers; the remaining five will follow.”

Raymond James expects a short-term reduction of revenue from annuities sales, but anticipates its commitment to its clients will yield the long-term benefit of greater client retention.

About Raymond James Financial

Raymond James Financial (NYSE-RJF) is a Florida-based diversified holding company providing financial services to individuals, corporations and municipalities through its subsidiary companies. Its three wholly owned broker/dealers, Raymond James & Associates, Raymond James Financial Services and Raymond James Ltd. have more than 4,800 financial advisors serving 1.4 million accounts in 2,200 locations throughout the United States, Canada and overseas. Total client assets are currently over $169 billion, of which more than $31.6 billion are managed by the firm’s asset management subsidiaries.

To the extent that Raymond James makes or publishes forward-looking statements regarding management expectations, strategic objectives, business prospects, anticipated expense savings, financial results, anticipated results of litigation and regulatory proceedings, and other

similar matters, a variety of factors – many of which are beyond Raymond James’ control – could cause actual results and experiences to differ materially from the expectations and objectives expressed in these statements. These factors are described in Raymond James’ 2005 annual report on Form 10-K, which is available on raymondjames.com and sec.gov.

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For more information, contact Tracey Bustamante at 727-567-2824.
Please visit the Raymond James Press Center at raymondjames.com/media.htm.