Allied Life: Merger Announcement


                        ALLIED Life Financial Corporation 
                        announces a Merger with Nationwide
                        Contact Sam Wells (515) 280-4854

Des Moines, Iowa, June 4, 1998 --- ALLIED Life Financial Corporation (NASDAQ:
ALFC)announced that it yesterday entered into an Agreement and Plan of Merger
to be acquired by Nationwide Mutual Insurance Company ("Nationwide") at a price
of $30 per share cash.  The transaction is subject to regulatory approvals and
approval by the ALFC shareholders if required. The transaction is structured as
a tender offer for all of the outstanding shares of common stock of ALFC, to be
followed by a second-stage merger of a subsidiary of Nationwide with and into
ALFC.

The Agreement and Plan of Merger was  recommended to the Board by a committee
of directors who are not affiliated with ALLIED Group, Inc. or ALLIED Mutual
Insurance Company, the parent company of ALFC.
                                                                               
ALFC is a holding company that, through its principal subsidiary, ALLIED Life
Insurance Company, underwrites, markets, and distributes life insurance and
annuity products in the United States.  Company financial information is on the
Internet at http://www.cfonews.com/alfc.




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