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Aegon N.V. (AGN)


Monday 24 July, 2000

Aegon N.V.

Accounting Changes, etc

Aegon N.V.
24 July 2000

AEGON changes status and accounting non-insurance businesses Transamerica

On March 1, 2000 AEGON N.V. (NYSE:AEG) announced its intention to make
opportunistic divestments of the businesses comprising Transamerica Finance
Corporation (TFC) which was acquired in connection with the purchase of
Transamerica Corporation in July 1999. TFC's operating results continue to be
very good and an agreement was recently signed for the sale of the tank segment
of the business to a private firm for approximately USD 260 million, which will
result in a small book gain. Sales of several additional segments are currently
under discussion. However, general weakness within the commercial finance market
has precluded other credible bids from being made. Therefore, AEGON will
continue to develop these businesses as operating units of the Group.

Since their acquisition, AEGON has been accounting for the non-insurance
businesses of Transamerica as equity participations. AEGON is now required under
Dutch Accounting Principles to effect the following accounting changes:

1) Effective June 30, 2000 the non-insurance businesses, including Real Estate
Services, will be carried in the balance sheet as unconsolidated holdings at
their net asset value of EUR 1.7 billion (USD 1.6 billion) based on Dutch
accounting Principles. The difference between net asset value and the prior
carrying value is EUR 2.0 billion (USD 1.9 billion), which will be charged as
goodwill directly to equity.

2) Effective July 1, 2000 the net income of the non-insurance businesses will be
included in consolidated earnings. Previously, only dividends declared were
included in consolidated earnings.

Due to the inclusion of the full earnings contribution of the profitable
non-insurance operations from July 1 and the higher average exchange rate
realized to date for the US dollar to the euro compared to last year, AEGON
anticipates an upgrade to its earnings forecast for the full year with the
presentation of the six months results on August 10.

Furthermore, approximately USD 1.8 billion of the original USD 3.1 billion
acquisition debt related to the non-insurance businesses will be paid off by
AEGON N.V. prior to the end of this year. This will be funded with the proceeds
from the sale of bank Labouchere as well as with dividends of excess capital
from insurance operations.

AEGON's Executive Board Chairman, Kees Storm, said, 'The Transamerica finance
and real estate businesses are well managed and have good performance. The net
asset value accounting change which is now being required, is not a reflection
of the economic value of these businesses. Further development of these
businesses will result in the best long term value for our shareholders and
provide a firm basis for the management and employees of these businesses to
continue to successfully build on their client relationships'.

The Hague, Netherlands, San Francisco, and Baltimore, July 24, 2000

AEGON N.V. is one of the world's largest listed insurance organizations. Its
largest business units operate in the United States of America, the Netherlands,
the UK, Hungary, Spain, Mexico and Canada. The AEGON Group focuses on insurance
as its core business, with a strong emphasis on marketing life insurance,
pensions, investment products and related financial services. AEGON. N.V. shares
are listed on the Amsterdam, Frankfurt, London, New York (NYSE: symbol AEG),
Tokyo and Zurich Stock Exchanges. Options on AEGON shares are traded on the
Amsterdam Exchanges, the Philadelphia Stock Exchange and the Chicago Board
options Exchange.


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