Nationwide^® VLI

Separate Account-4

 December 31, 2007

2007

Annual Report

Nationwide Life Insurance Company

Home Office: Columbus, Ohio      

VLOB-0161-12/07

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2007

Assets:
Investments at fair value:
AIM VIF - Basic Value Fund - Series I (AIMBValue) 633,230 shares (cost $7,944,089)	$	8,061,018
AIM VIF - Capital Appreciation Fund - Series I (AIMCapAp) 59,093 shares (cost $1,432,975)		1,735,563
AIM VIF - Capital Development Fund - Series I (AIMCapDev) 837,171 shares (cost $15,322,095)		15,780,682
AIM VIF - International Growth Fund - Series I (AIMIntGr) 1,067,006 shares (cost $31,143,384)		35,883,404
AllianceBernstein VPS - Growth and Income Portfolio - Class A (AlVGrIncA) 796,001 shares (cost $19,808,876)		21,348,735
AllianceBernstein VPS - International Value Portfolio - Class A (AlVIntlValA) 1,295,177 shares (cost $32,107,013)		32,560,742
AllianceBernstein VPS - Small/Mid Cap Value Portfolio - Class A (AlVSmMdCpA) 330,438 shares (cost $6,002,737)		5,653,796
American Century VP - Income & Growth Fund - Class I (ACVPIncGr) 3,041,083 shares (cost $21,157,967)		25,727,563
American Century VP - Inflation Protection Fund - Class II (ACVPInflPro2) 650,011 shares (cost $6,604,686)		6,857,612
American Century VP - International Fund - Class I (ACVPInt) 4,107,800 shares (cost $30,700,456)		48,718,505
American Century VP - International Fund - Class III (ACVPInt3) 1,020,211 shares (cost $8,995,051)		12,099,701
American Century VP - Mid Cap Value Fund - Class I (ACVPMdCpV) 177,065 shares (cost $2,511,685)		2,291,227
American Century VP - Ultra® Fund - Class I (ACVPUltra) 478,568 shares (cost $5,036,486)		5,814,601
American Century VP - Value Fund - Class I (ACVPVal) 9,157,481 shares (cost $72,544,305)		68,406,385
American Century VP - VistaSM Fund - Class I (ACVPVista1) 248,547 shares (cost $5,115,244)		5,468,029
BlackRock Large Cap Core V.I. Fund - Class II (BRLrgCp) 125,676 shares (cost $4,127,752)		3,736,359
Calvert Variable Series Inc. - Social Equity Portfolio (CalVSSocEq) 6,605 shares (cost $132,527)		134,606
Credit Suisse Trust - Global Small Cap Portfolio (CSTGlobSmCp) 44,597 shares (cost $531,287)		627,926
Credit Suisse Trust - International Focus Portfolio (CSTIntFoc) 146,803 shares (cost $1,314,628)		2,326,834
Credit Suisse Trust - Large Cap Value Portfolio (CSTLCapV) 123,252 shares (cost $1,664,775)		1,661,443
Dreyfus IP - Mid Cap Stock Portfolio - Initial Shares (DryIPMidCap) 86,161 shares (cost $1,430,040)		1,337,226

(Continued)

2

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY, Continued

Dreyfus IP - Small Cap Stock Index Portfolio - Service Shares (DryIPSmCap) 1,433,661 shares (cost $24,991,832)	$	25,289,778
Dreyfus Stock Index Fund, Inc. - Initial Shares (DryStkIx) 10,315,043 shares (cost $306,079,800)		385,782,591
Dreyfus VIF - Appreciation Portfolio - Initial Shares (DryVApp) 790,695 shares (cost $28,464,796)		35,470,556
Dreyfus VIF - Developing Leaders Portfolio - Initial Shares (DryVDevLd) 20,318 shares (cost $821,481)		657,086
Dreyfus VIF - International Value Portfolio - Initial Shares (DryVIntVal) 2,061,693 shares (cost $36,232,111)		35,935,305
DWS Variable Series II - Dreman High Return Equity VIP - Class B (DWSVHghRtrn) 51,629 shares (cost $776,234)		743,969
Federated IS - American Leaders Fund II - Primary Shares (FedAmLead) 16,668 shares (cost $329,875)		285,514
Federated IS - Capital Appreciation Fund II - Primary Shares (FedCapAp) 69,578 shares (cost $440,012)		514,182
Federated IS - Market Opportunity Fund II - Service Shares (FedMrkOp) 4,506 shares (cost $46,126)		46,182
Federated IS - Quality Bond Fund II - Primary Shares (FedQualBd) 3,757,583 shares (cost $42,133,743)		42,610,987
Fidelity® VIP - Equity-Income Portfolio - Service Class (FidVIPEIS) 4,548,198 shares (cost $108,650,015)		108,338,065
Fidelity® VIP - Growth Portfolio - Service Class (FidVIPGrS) 2,651,450 shares (cost $82,251,505)		119,288,749
Fidelity® VIP - High Income Portfolio - Service Class (FidVIPHIS) 4,217,056 shares (cost $27,303,825)		25,091,480
Fidelity® VIP - High Income Portfolio - Service Class R (FidVIPHISR) 386,019 shares (cost $2,477,847)		2,289,095
Fidelity® VIP - Overseas Portfolio - Service Class (FidVIPOvS) 2,175,813 shares (cost $42,164,849)		54,874,004
Fidelity® VIP - Overseas Portfolio - Service Class R (FidVIPOvSR) 741,543 shares (cost $15,948,150)		18,679,464
Fidelity® VIP II - Contrafund® Portfolio - Service Class (FidVIPConS) 8,549,296 shares (cost $237,141,011)		237,670,419
Fidelity® VIP II - Investment Grade Bond Portfolio - Service Class (FidVIPIGBdS) 1,146,526 shares (cost $14,277,199)		14,526,485
Fidelity® VIP III - Growth Opportunities Portfolio - Service Class (FidVIPGrOpS) 632,341 shares (cost $9,862,456)		14,113,844
Fidelity® VIP III - Mid Cap Portfolio - Service Class (FidVIPMCapS) 1,151,281 shares (cost $38,165,406)		41,423,093
Fidelity® VIP III - Value Strategies Portfolio - Service Class (FidVIPVaIS) 737,451 shares (cost $9,536,140)		9,247,629
Fidelity® VIP IV - Energy Portfolio - Service Class 2 (FidVIPEnergyS2) 539,148 shares (cost $11,986,641)		14,255,084
Fidelity® VIP IV - Freedom Fund 2010 Portfolio - Service Class (FidVIPFree10S) 131,520 shares (cost $1,564,179)		1,571,670
Fidelity® VIP IV - Freedom Fund 2020 Portfolio - Service Class (FidVIPFree20S) 241,500 shares (cost $2,966,361)		3,047,725

(Continued)

3

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY, Continued

Fidelity® VIP IV - Freedom Fund 2030 Portfolio - Service Class (FidVIPFree30S) 149,356 shares (cost $1,904,709)	$	1,943,122
Franklin Templeton VIP - Developing Markets Securities Fund - Class 3 (FrVIPDevMrk3) 482,203 shares (cost $6,433,972)		7,695,955
Franklin Templeton VIP - Foreign Securities Fund - Class 1 (FrVIPForSec) 157,216 shares (cost $2,328,019)		3,235,497
Franklin Templeton VIP - Foreign Securities Fund - Class 2 (FrVIPForSec2) 1,110,854 shares (cost $20,020,202)		22,494,784
Franklin Templeton VIP - Foreign Securities Fund - Class 3 (FrVIPForSec3) 362,658 shares (cost $6,246,960)		7,318,438
Franklin Templeton VIP - Global Income Securities Fund - Class 3 (FrVIPGlInc3) 208,062 shares (cost $3,279,306)		3,476,710
Franklin Templeton VIP - Income Securities Fund - Class 2 (FrVIPIncSec2) 279,159 shares (cost $4,941,181)		4,832,242
Franklin Templeton VIP - Rising Dividends Securities Fund - Class 1 (FrVIPRisDiv) 755,367 shares (cost $14,044,734)		14,812,750
Franklin Templeton VIP - Small Cap Value Securities Fund - Class 1 (FrVIPSCapV1) 650,485 shares (cost $11,630,551)		11,305,427
Franklin Templeton VIP - Small Cap Value Securities Fund - Class 2 (FrVIPSCapV2) 297,014 shares (cost $5,503,892)		5,078,942
Goldman Sachs VIT Mid Cap Value Fund (GSVTMdCpV) 5,563,134 shares (cost $88,819,967)		77,995,141
Janus Aspen Series - Balanced Portfolio - Service Shares (JAspBal) 294,375 shares (cost $8,611,573)		9,149,169
Janus Aspen Series - Forty Portfolio - Service Shares (JAspForty) 1,637,900 shares (cost $44,137,837)		66,826,334
Janus Aspen Series - Global Technology Portfolio - Service Shares (JAspGlTechS) 3,182,963 shares (cost $11,977,755)		16,487,750
Janus Aspen Series - INTECH Risk-Managed Core Portfolio - Service Shares (JAspRMgCore) 38,254 shares (cost $497,387)		508,396
Janus Aspen Series - International Growth Portfolio - Service II Shares (JAspIntGroS2) 380,055 shares (cost $19,644,677)		24,619,966
Janus Aspen Series - International Growth Portfolio - Service Shares (JAspIntGroS) 1,119,921 shares (cost $39,107,363)		72,246,109
JPMorgan Insurance Trust - Diversified Mid Cap Growth Portfolio 1 (JPMMidCapGr) 326,740 shares (cost $6,711,705)		6,760,247
JPMorgan Insurance Trust - Diversified Mid Cap Value Portfolio 1 (JPMMidCapV) 23,426 shares (cost $281,493)		211,304
Lehman Brothers AMT - Short Duration Bond Portfolio - I Class (LBTShrtDBd) 657,267 shares (cost $8,439,916)		8,544,465
Lincoln VIP - Baron Growth Opportunies Funds - Service Class (LincGroOp) 529,331 shares (cost $15,868,000)		15,850,277
Lord Abbett Series Fund, Inc. - Mid-Cap Value Portfolio - Class VC (LrdMidCapV) 99,984 shares (cost $2,257,563)		1,889,706
MFS VIT - Investors Growth Stock Series - Initial Class (MFSInvGrSt) 388,089 shares (cost $3,792,249)		4,587,216
MFS VIT - Research International Series - Service Class (MFSRsrchIntl) 593 shares (cost $9,229)		9,492

(Continued)

4

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY, Continued

MFS VIT - Value Series - Initial Class (MFSValue) 452,585 shares (cost $6,468,558)	$	6,901,914
Nationwide VIT - American Funds Asset Allocation Fund - Class II (NVITAstAll2) 196,853 shares (cost $3,821,752)		3,809,097
Nationwide VIT - American Funds Bond Fund - Class II (NVITBnd2) 215,804 shares (cost $2,509,615)		2,421,323
Nationwide VIT - American Funds Global Growth Fund - Class II (NVITGlobGr2) 214,485 shares (cost $5,242,183)		5,593,772
Nationwide VIT - American Funds Growth - Income Fund - Class II (NVITGroInc2) 21,520 shares (cost $972,312)		937,390
Nationwide VIT - American Funds Growth Fund - Class II (NVITGrowth2) 98,163 shares (cost $6,725,322)		7,083,428
Nationwide VIT - Federated High Income Bond Fund - Class I (NVITFHiInc) 3,048,298 shares (cost $24,294,009)		23,288,997
Nationwide VIT - Federated High Income Bond Fund - Class III (NVITFHiInc3) 2,075,682 shares (cost $16,448,879)		15,837,451
Nationwide VIT - Gartmore Emerging Markets Fund - Class I (NVITEmMrkts) 2,315,751 shares (cost $38,389,264)		52,359,129
Nationwide VIT - Gartmore Emerging Markets Fund - Class III (NVITEmMrkts3) 1,101,602 shares (cost $18,918,886)		24,885,178
Nationwide VIT - Gartmore Global Utilities Fund - Class I (NVITGlUtl) 502,259 shares (cost $6,386,834)		6,157,696
Nationwide VIT - Gartmore International Growth Fund - Class I (NVITIntGro) 894,727 shares (cost $10,467,846)		12,579,855
Nationwide VIT - Gartmore Worldwide Leaders Fund - Class I (NVITWLead) 406,473 shares (cost $5,453,660)		7,718,915
Nationwide VIT - Global Financial Services Fund - Class I (NVITGlFin) 426,551 shares (cost $5,555,602)		4,645,136
Nationwide VIT - Global Health Sciences Fund - Class I (NVITGlHlth) 398,124 shares (cost $4,367,593)		4,685,924
Nationwide VIT - Global Health Sciences Fund - Class III (NVITGlHlth3) 223,096 shares (cost $2,427,053)		2,632,532
Nationwide VIT - Global Technology and Communications Fund - Class I (NVITGlTech) 1,336,497 shares (cost $5,636,202)		6,869,597
Nationwide VIT - Global Technology and Communications Fund - Class III (NVITGlTech3) 792,184 shares (cost $3,664,808)		4,103,511
Nationwide VIT - Government Bond Fund - Class I (NVITGvtBd) 8,744,660 shares (cost $101,538,316)		101,700,393
Nationwide VIT - Growth Fund - Class I (NVITGrowth) 1,350,537 shares (cost $12,997,203)		19,582,780
Nationwide VIT - International Index Fund - Class II (NVITIntIdx2) 191,108 shares (cost $2,235,022)		2,222,587
Nationwide VIT - International Index Fund - Class VI (NVITIntIdx6) 55,186 shares (cost $620,669)		641,261
Nationwide VIT - International Value Fund - Class I (NVITIntValI) 127,330 shares (cost $2,026,994)		2,225,720
Nationwide VIT - International Value Fund - Class III (NVITIntVal3) 552,285 shares (cost $9,732,257)		9,626,329

(Continued)

5

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY, Continued

Nationwide VIT - Investor Destinations Aggressive Fund - Class II (NVITIDAgg2) 2,579,961 shares (cost $32,820,931)	$	35,087,466
Nationwide VIT - Investor Destinations Conservative Fund - Class II (NVITIDCon2) 1,408,111 shares (cost $14,647,245)		14,644,354
Nationwide VIT - Investor Destinations Moderate Fund - Class II (NVITIDMod2) 5,896,487 shares (cost $67,805,371)		73,352,295
Nationwide VIT - Investor Destinations Moderately Aggressive Fund - Class II (NVITIDModAg2) 6,386,094 shares (cost $76,998,614)		85,190,499
Nationwide VIT - Investor Destinations Moderately Conservative Fund - Class II (NVITIDModCon2) 3,133,462 shares (cost $34,947,717)		35,564,795
Nationwide VIT - J.P. Morgan Balanced Fund - Class I (NVITJPBal) 1,592,730 shares (cost $15,677,489)		17,440,388
Nationwide VIT - Mid Cap Growth Fund - Class I (NVITMdCpGr) 538,927 shares (cost $14,132,780)		17,531,295
Nationwide VIT - Mid Cap Index Fund - Class I (NVITMidCap) 3,970,138 shares (cost $70,081,221)		76,147,254
Nationwide VIT - Money Market Fund - Class I (NVITMyMkt) 122,257,635 shares (cost $122,257,635)		122,257,635
Nationwide VIT - Money Market Fund - Class V (NVITMyMkt5) 345,939,962 shares (cost $345,939,962)		345,939,962
Nationwide VIT - Multi-Manager Small Cap Growth Fund - Class I (NVITSmCapGr) 1,277,586 shares (cost $19,963,377)		23,009,330
Nationwide VIT - Multi-Manager Small Cap Value Fund - Class I (NVITSmCapVal) 6,536,235 shares (cost $78,727,923)		64,578,004
Nationwide VIT - Multi-Manager Small Company Fund - Class I (NVITSmComp) 4,428,873 shares (cost $104,279,602)		98,365,263
Nationwide VIT - Nationwide Fund - Class I (NVITNWFund) 32,076,708 shares (cost $337,408,545)		435,922,468
Nationwide VIT - Nationwide Leaders Fund - Class I (NVITNWLead) 189,497 shares (cost $2,621,811)		2,471,043
Nationwide VIT - U.S. Growth Leaders Fund - Class I (NVITUSGro) 668,981 shares (cost $7,684,298)		8,636,541
Nationwide VIT - Van Kampen Comstock Value Fund - Class I (NVITVKVal) 1,229,592 shares (cost $14,243,291)		14,140,311
Nationwide VIT - Van Kampen Multi Sector Bond Fund - Class I (NVITMltSec) 2,487,548 shares (cost $24,546,609)		24,527,224
Neuberger Berman AMT - Fasciano Portfolio - S Class Shares (NBTAFasc) 138,620 shares (cost $2,073,739)		2,009,993
Neuberger Berman AMT - Guardian Portfolio - I Class Shares (NBTAGuard) 605,085 shares (cost $9,836,414)		12,773,334
Neuberger Berman AMT - International Portfolio - Class S (NBTAInt) 308,346 shares (cost $4,360,796)		4,196,590
Neuberger Berman AMT - Mid-Cap Growth Portfolio - I Class Shares (NBTAMCGr) 1,727,501 shares (cost $27,828,618)		49,233,790
Neuberger Berman AMT - Partners Portfolio - Class I (NBTAPart) 1,030,637 shares (cost $20,916,557)		21,406,339
Neuberger Berman AMT - Regency Portfolio - Class I (NBTARegI) 52,447 shares (cost $867,760)		851,209

(Continued)

6

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY, Continued

Neuberger Berman AMT - Regency Portfolio - Class S (NBTARegS) 72,255 shares (cost $1,283,323)	$	1,255,077
Neuberger Berman AMT - Socially Responsive Portfolio Class I (NBTSocRes) 259,992 shares (cost $4,244,616)		4,656,448
Oppenheimer VAF - Capital Appreciation Fund - Non-Service Shares (OppCapAp) 2,813,300 shares (cost $99,313,672)		132,731,517
Oppenheimer VAF - Global Securities Fund - Class 3 (OppGlSec3) 565,015 shares (cost $19,167,340)		20,803,840
Oppenheimer VAF - Global Securities Fund - Non-Service Shares (OppGlSec) 2,073,499 shares (cost $64,485,907)		75,890,059
Oppenheimer VAF - High Income Fund - Class 3 (OppHighInc3) 117,597 shares (cost $957,720)		938,422
Oppenheimer VAF - High Income Fund - Non-Service Shares (OppHighInc) 338,231 shares (cost $2,844,583)		2,688,940
Oppenheimer VAF - Main Street Small Cap Fund® - Non-Service Shares (OppMStSCap) 300,818 shares (cost $5,347,031)		5,474,892
Oppenheimer VAF - Main Street® - Non-Service Shares (OppMSt) 1,712,103 shares (cost $34,121,348)		43,846,953
Oppenheimer VAF - Mid Cap Fund - Non-Service Shares (OppMidCap) 842,771 shares (cost $34,842,577)		45,568,650
PIMCO VIT - All Asset Portfolio - Administrative Shares (PVITAllAst) 173,135 shares (cost $2,052,381)		2,029,142
PIMCO VIT - Low Duration Portfolio - Administrative Shares (PVITLowDur) 4,628,475 shares (cost $46,844,044)		47,673,293
PIMCO VIT - Real Return Portfolio - Administrative Shares (PVITRealRet) 4,267,572 shares (cost $53,453,633)		53,643,381
PIMCO VIT - Total Return Portfolio - Administrative Shares (PVITTotRet) 15,025,799 shares (cost $153,027,450)		157,620,630
Pioneer VCT - Pioneer High Yield Portfolio - Class I Shares (PioVHiYield) 1,531,658 shares (cost $17,009,823)		16,924,819
Putnam VT - Growth and Income Fund - IB Shares (PVTGroInc) 44,607 shares (cost $1,144,687)		1,031,309
Putnam VT - International Equity Fund - IB Shares (PVTIntlEq) 161,597 shares (cost $3,010,247)		3,063,872
Putnam VT - Voyager Fund - IB Shares (PVTVoygr) 13,720 shares (cost $382,633)		435,346
Royce Capital Fund - Micro-Cap Portfolio (RCFMicroCap) 4,077,596 shares (cost $56,449,672)		54,925,212
T. Rowe Price Blue Chip Growth Portfolio - II (TRoeBlChip2) 253,193 shares (cost $2,677,001)		2,962,354
T. Rowe Price Equity Income Portfolio - II (TRowEqInc2) 4,192,375 shares (cost $98,188,101)		99,149,667
T. Rowe Price Limited Term Bond Portfolio - Class II (TRowLtdTBd2) 218,254 shares (cost $1,066,311)		1,080,359
T. Rowe Price Mid-Cap Growth Portfolio - II (TRowMidCap2) 1,107,744 shares (cost $28,576,405)		27,427,752
T. Rowe Price New America Growth Portfolio (TRowNwAmGr) 652,107 shares (cost $13,810,682)		14,398,522

(Continued)

7

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY, Continued

T. Rowe Price Personal Strategy Balanced Portfolio (TRowPerStrBal) 3,519 shares (cost $72,684)	$	65,811
The Dreyfus Socially Responsible Growth Fund, Inc. - Initial Shares (DrySRGro) 488,432 shares (cost $11,601,370)		14,897,163
Van Eck Worldwide Insurance Trust - Emerging Markets Fund - Initial Class (VEWrldEMkt) 1,116,088 shares (cost $23,764,593)		30,937,964
Van Eck Worldwide Insurance Trust - Hard Assets Fund - Initial Class (VEWrldHAs) 834,436 shares (cost $27,542,303)		34,370,405
Van Kampen UIF - Core Plus Fixed Income Portfolio - Class I (VKUCorPlus) 296,176 shares (cost $3,381,062)		3,429,724
Van Kampen UIF - Emerging Markets Debt Portfolio - Class I (VKUEmMkt) 1,433,181 shares (cost $12,265,857)		12,225,035
Van Kampen UIF - Mid Cap Growth Portfolio - Class I (VKUMCpGro) 630,309 shares (cost $8,279,246)		9,189,907
Van Kampen UIF - U.S. Real Estate Portfolio - Class I (VKUUSRE) 3,157,714 shares (cost $73,107,954)		69,627,587
W&R Target Funds, Inc. - Growth Portfolio (WRGrowth) 20,126 shares (cost $242,209)		241,986
W&R Target Funds, Inc. - Real Estate Securities Portfolio (WRRealEstS) 21,669 shares (cost $177,407)		151,396
W&R Target Funds, Inc. - Science and Technology Portfolio (WRSciTech) 253 shares (cost $5,309)		4,556
Wells Fargo AVT - Opportunity FundSM (WFVOpp) 1,226,110 shares (cost $26,824,475)		27,011,195
Total Investments		4,818,024,834
Accounts Receivable		110,183
Total Assets		4,818,135,017
Accounts Payable		—
Contract Owners Equity (note 7)	$	4,818,135,017

See accompanying notes to financial statements.

8

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS

Year Ended December 31, 2007

Investment activity:	Total			AIMBValue		AIMCapAp		AIMCapDev		AIMIntGr		AlVGrIncA		AlVIntlValA		AlVSmMdCpA
Reinvested dividends	$	91,678,320		50,478		-		-		140,576		299,842		281,943		46,884
Mortality and expense risk charges (note 3)		(6,216,537	)	(6,570	)	-		(26,701	)	(78,764	)	(47,895	)	(70,619	)	(1,256	)
Net investment income (loss)		85,461,783		43,908		-		(26,701	)	61,812		251,947		211,324		45,628
Proceeds from mutual fund shares sold		1,080,591,585		2,185,251		288,900		3,716,326		4,788,216		3,214,155		4,261,828		1,310,064
Cost of mutual fund shares sold		(873,005,198	)	(1,836,834	)	(214,877	)	(2,668,300	)	(3,191,605	)	(2,622,874	)	(3,584,527	)	(1,107,569	)
Realized gain (loss) on investments		207,586,387		348,417		74,023		1,048,026		1,596,611		591,281		677,301		202,495
Change in unrealized gain (loss) on investments		(135,244,323	)	(710,460	)	106,701		(966,703	)	1,281,739		(848,511	)	(1,000,621	)	(661,993	)
Net gain (loss) on investments		72,342,064		(362,043	)	180,724		81,323		2,878,350		(257,230	)	(323,320	)	(459,498	)
Reinvested capital gains		219,084,030		470,561		-		1,262,845		-		1,017,690		932,439		346,724
Net increase (decrease) in contract owners’ equity resulting from operations	$	376,887,877		152,426		180,724		1,317,467		2,940,162		1,012,407		820,443		(67,146	)
Investment activity:	ACVPIncGr			ACVPInflPro2		ACVPInt		ACVPInt3		ACVPMdCpV		ACVPUltra		ACVPVal		ACVPVista1
Reinvested dividends	$	523,519		296,823		339,626		61,541		17,552		-		1,204,997		-
Mortality and expense risk charges (note 3)		(11,691	)	-		(55,274	)	-		-		(2,826	)	(58,535	)	(1,573	)
Net investment income (loss)		511,828		296,823		284,353		61,541		17,552		(2,826	)	1,146,462		(1,573	)
Proceeds from mutual fund shares sold		6,391,885		2,961,768		12,792,551		415,418		2,159,832		1,066,220		13,113,684		1,147,575
Cost of mutual fund shares sold		(3,826,687	)	(3,008,609	)	(7,030,659	)	(266,988	)	(2,075,191	)	(964,410	)	(11,266,074	)	(998,331	)
Realized gain (loss) on investments		2,565,198		(46,841	)	5,761,892		148,430		84,641		101,810		1,847,610		149,244
Change in unrealized gain (loss) on investments		(3,011,606	)	393,108		1,798,877		1,432,507		(281,936	)	772,249		(12,797,015	)	352,778
Net gain (loss) on investments		(446,408	)	346,267		7,560,769		1,580,937		(197,295	)	874,059		(10,949,405	)	502,022
Reinvested capital gains		-		-		-		-		36,360		-		6,248,743		-
Net increase (decrease) in contract owners’ equity resulting from operations	$	65,420		643,090		7,845,122		1,642,478		(143,383	)	871,233		(3,554,200	)	500,449

(Continued)

9

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:	BRIntIndex			BRLrgCp		CalVSSocEq		CSTGIobSmCp		CSTIntFoc		CSTLCapV		DrylPMidCap		DrylPSmCap
Reinvested dividends	$	-		32,666		-		-		24,804		23,508		4,679		95,818
Mortality and expense risk charges (note 3)		(1,459	)	(6,879	)	(281	)	(211	)	(352	)	(175	)	(2,385	)	(39,671	)
Net investment income (loss)		(1,459	)	25,787		(281	)	(211	)	24,452		23,333		2,294		56,147
Proceeds from mutual fund shares sold		1,799,658		242,954		94,444		216,013		216,956		408,875		817,564		7,867,956
Cost of mutual fund shares sold		(1,845,720	)	(231,946	)	(80,252	)	(131,657	)	(117,321	)	(290,561	)	(859,538	)	(6,437,491	)
Realized gain (loss) on investments		(46,062	)	11,008		14,192		84,356		99,635		118,314		(41,974	)	1,430,465
Change in unrealized gain (loss) on investments		180,030		(384,037	)	(10,352	)	(105,235	)	219,876		(439,671	)	(74,440	)	(2,636,043	)
Net gain (loss) on investments		133,968		(373,029	)	3,840		(20,879	)	319,511		(321,357	)	(116,414	)	(1,205,578	)
Reinvested capital gains		-		515,034		6,543		-		-		348,824		132,936		1,029,058
Net increase (decrease) in contract owners’ equity resulting from operations	$	132,509		167,792		10,102		(21,090	)	343,963		50,800		18,816		(120,373	)
Investment activity:	DryStklx			DryVApp		DryVDevLd		DryVlntVal		DWSVHghRtrn		FedAmLead		FedCapAp		FedMrkOp
Reinvested dividends	$	6,828,654		554,508		5,945		604,139		5,896		4,935		3,604		483
Mortality and expense risk charges (note 3)		(621,689	)	(38,505	)	-		(96,433	)	(1,651	)	-		-		-
Net investment income (loss)		6,206,965		516,003		5,945		507,706		4,245		4,935		3,604		483
Proceeds from mutual fund shares sold		64,834,443		5,607,469		196,844		14,030,000		114,110		138,214		131,641		9,136
Cost of mutual fund shares sold		(39,572,589	)	(3,607,367	)	(205,752	)	(11,953,142	)	(110,285	)	(132,467	)	(98,201	)	(9,265	)
Realized gain (loss) on investments		25,261,854		2,000,102		(8,908	)	2,076,858		3,825		5,747		33,440		(129	)
Change in unrealized gain (loss) on investments		(11,213,766	)	(36,012	)	(186,955	)	(5,890,842	)	(35,281	)	(77,319	)	9,103		(1,040	)
Net gain (loss) on investments		14,048,088		1,964,090		(195,863	)	(3,813,984	)	(31,456	)	(71,572	)	42,543		(1,169	)
Reinvested capital gains		-		-		103,932		4,852,609		4,673		36,771		-		-
Net increase (decrease) in contract owners’ equity resulting from operations	$	20,255,053		2,480,093		(85,986	)	1,546,331		(22,538	)	(29,866	)	46,147		(686	)

(Continued)

10

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:	FedQualBd			FidVIPEIS		FidVIPGrS		FidVIPHIS		FidVIPHISR		FidVIPOvS		FidVIPOvSR		FidVIPConS
Reinvested dividends	$	3,012,535		1,932,978		656,152		2,077,049		190,145		1,625,906		538,729		1,910,296
Mortality and expense risk charges (note 3)		(59,132	)	(117,543	)	(86,521	)	(17,826	)	-		(87,720	)	-		(258,348	)
Net investment income (loss)		2,953,403		1,815,435		569,631		2,059,223		190,145		1,538,186		538,729		1,651,948
Proceeds from mutual fund shares sold		30,356,930		19,337,365		23,181,545		6,510,557		350,299		9,420,379		2,559,592		22,882,344
Cost of mutual fund shares sold		(31,571,489	)	(12,532,637	)	(17,577,883	)	(6,699,624	)	(361,824	)	(5,956,483	)	(1,820,952	)	(12,034,842	)
Realized gain (loss) on investments		(1,214,559	)	6,804,728		5,603,662		(189,067	)	(11,525	)	3,463,896		738,640		10,847,502
Change in unrealized gain (loss) on investments		608,709		(15,905,975	)	18,441,027		(1,231,809	)	(188,751	)	(432,859	)	309,061		(35,362,204	)
Net gain (loss) on investments		(605,850	)	(9,101,247	)	24,044,689		(1,420,876	)	(200,276	)	3,031,037		1,047,701		(24,514,702	)
Reinvested capital gains		-		9,084,163		97,886		-		-		3,263,967		1,044,686		57,020,823
Net increase (decrease) in contract owners’ equity resulting from operations	$	2,347,553		1,798,351		24,712,206		638,347		(10,131	)	7,833,190		2,631,116		34,158,069
Investment activity:	FidVIPIGBdS			FidVIPGrOpS		FidVIPMCapS		FidVIPVaIS		FidVIPEnergyS2		FidVIPFree10S		FidVIPFree20S		FidVIPFree30S
Reinvested dividends	$	476,436		-		270,110		79,172		12,190		37,076		61,125		38,873
Mortality and expense risk charges (note 3)		(4,347	)	(2,839	)	(26,833	)	(644	)	-		-		-		-
Net investment income (loss)		472,089		(2,839	)	243,277		78,528		12,190		37,076		61,125		38,873
Proceeds from mutual fund shares sold		3,723,080		3,462,748		4,763,617		2,950,103		3,796,385		352,551		282,835		171,089
Cost of mutual fund shares sold		(3,882,092	)	(2,086,112	)	(4,018,048	)	(2,902,449	)	(3,700,169	)	(316,589	)	(231,055	)	(137,832	)
Realized gain (loss) on investments		(159,012	)	1,376,636		745,569		47,654		96,216		35,962		51,780		33,257
Change in unrealized gain (loss) on investments		191,770		1,321,560		1,091,975		(544,851	)	3,011,353		(16,903	)	(8,653	)	(2,052	)
Net gain (loss) on investments		32,758		2,698,196		1,837,544		(497,197	)	3,107,569		19,059		43,127		31,205
Reinvested capital gains		-		-		3,082,876		911,629		563,500		35,183		84,690		65,958
Net increase (decrease) in contract owners’ equity resulting from operations	$	504,847		2,695,357		5,163,697		492,960		3,683,259		91,318		188,942		136,036

(Continued)

11

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:	FrVIPDevMrk3			FrVIPForSec		FrVIPForSec2		FrVIPForSec3		FrVIPGlInc3		FrVIPIncSec2		FrVIPRisDiv		FrVIPSCapV1
Reinvested dividends	$	134,911		69,784		344,432		141,669		59,433		127,625		401,727		106,122
Mortality and expense risk charges (note 3)		-		-		(53,327	)	-		-		-		-		-
Net investment income (loss)		134,911		69,784		291,105		141,669		59,433		127,625		401,727		106,122
Proceeds from mutual fund shares sold		1,549,135		967,868		7,105,538		1,145,241		366,147		1,403,298		2,960,392		1,568,641
Cost of mutual fund shares sold		(1,111,708	)	(633,458	)	(5,349,471	)	(872,410	)	(325,544	)	(1,360,058	)	(2,364,466	)	(1,247,964	)
Realized gain (loss) on investments		437,427		334,410		1,756,067		272,831		40,603		43,240		595,926		320,677
Change in unrealized gain (loss) on investments		427,527		(64,148	)	(279,035	)	238,423		120,126		(153,756	)	(1,588,215	)	(1,564,171	)
Net gain (loss) on investments		864,954		270,262		1,477,032		511,254		160,729		(110,516	)	(992,289	)	(1,243,494	)
Reinvested capital gains		445,938		144,496		785,608		307,222		-		23,668		227,655		811,996
Net increase (decrease) in contract owners’ equity resulting from operations	$	1,445,803		484,542		2,553,745		960,145		220,162		40,777		(362,907	)	(325,376	)
Investment activity:	FrVIPSCapV2			GSVTMdCpV		JAspBal		JAspForty		JAspGITechS		JAspRMgCore		JAsplntGroS2		JAsplntGroS
Reinvested dividends	$	28,063		625,839		189,547		96,428		52,327		2,302		86,238		283,951
Mortality and expense risk charges (note 3)		(12,400	)	(208,678	)	(17,100	)	(47,731	)	(5,158	)	-		-		(62,515	)
Net investment income (loss)		15,663		417,161		172,447		48,697		47,169		2,302		86,238		221,436
Proceeds from mutual fund shares sold		889,465		15,932,662		3,293,597		9,134,288		4,899,815		161,786		1,401,777		13,510,143
Cost of mutual fund shares sold		(773,836	)	(14,124,662	)	(2,908,086	)	(5,275,750	)	(2,658,012	)	(168,232	)	(1,029,978	)	(4,790,129	)
Realized gain (loss) on investments		115,629		1,808,000		385,511		3,858,538		2,241,803		(6,446	)	371,799		8,720,014
Change in unrealized gain (loss) on investments		(654,836	)	(11,651,421	)	149,402		12,121,690		748,048		33,823		3,732,278		6,681,827
Net gain (loss) on investments		(539,207	)	(9,843,421	)	534,913		15,980,228		2,989,851		27,377		4,104,077		15,401,841
Reinvested capital gains		288,566		11,581,061		-		-		-		3,990		-		-
Net increase (decrease) in contract owners’ equity resulting from operations	$	(234,978	)	2,154,801		707,360		16,028,925		3,037,020		33,669		4,190,315		15,623,277

(Continued)

12

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:	JPMMidCapGr			JPMMidCapV		LBTShrtDBd		LincGroOp		LrdMidCapV		MFSInvGrSt		MFSRsrchIntl		MFSValue
Reinvested dividends	$	-		4,906		235,067		-		8,625		15,269		-		49,384
Mortality and expense risk charges (note 3)		(13,419	)	(431	)	-		(37,013	)	(3,828	)	-		(8	)	-
Net investment income (loss)		(13,419	)	4,475		235,067		(37,013	)	4,797		15,269		(8	)	49,384
Proceeds from mutual fund shares sold		2,066,026		100,579		3,179,035		3,233,969		883,419		993,027		1,568		950,557
Cost of mutual fund shares sold		(1,941,595	)	(133,430	)	(3,162,507	)	(2,773,860	)	(833,466	)	(749,308	)	(1,470	)	(731,214	)
Realized gain (loss) on investments		124,431		(32,851	)	16,528		460,109		49,953		243,719		98		219,343
Change in unrealized gain (loss) on investments		(248,142	)	(84,540	)	149,231		(1,486,508	)	(364,934	)	229,819		264		14,453
Net gain (loss) on investments		(123,711	)	(117,391	)	165,759		(1,026,399	)	(314,981	)	473,538		362		233,796
Reinvested capital gains		863,461		116,564		-		1,458,483		253,561		-		-		84,573
Net increase (decrease) in contract owners’ equity resulting from operations	$	726,331		3,648		400,826		395,071		(56,623	)	488,807		354		367,753
Investment activity:	NVITAstAll2			NVITBnd2		NVITGlobGr2		NVITGroInc2		NVITGrowth2		NVITFHiInc		NVITFHiInc3		NVITEmMrkts
Reinvested dividends	$	68,968		142,989		111,882		11,382		34,454		1,883,010		959,716		278,098
Mortality and expense risk charges (note 3)		-		-		-		-		-		(35,581	)	-		(86,583	)
Net investment income (loss)		68,968		142,989		111,882		11,382		34,454		1,847,429		959,716		191,515
Proceeds from mutual fund shares sold		1,651,012		434,306		471,163		13,580		415,613		7,399,989		2,490,023		8,340,628
Cost of mutual fund shares sold		(1,510,885	)	(432,301	)	(382,797	)	(13,873	)	(352,171	)	(7,675,666	)	(2,510,291	)	(4,773,026	)
Realized gain (loss) on investments		140,127		2,005		88,366		(293	)	63,442		(275,677	)	(20,268	)	3,567,602
Change in unrealized gain (loss) on investments		(63,468	)	(97,260	)	251,313		(34,922	)	288,185		(819,124	)	(686,065	)	6,433,912
Net gain (loss) on investments		76,659		(95,255	)	339,679		(35,215	)	351,627		(1,094,801	)	(706,333	)	10,001,514
Reinvested capital gains		1,640		-		-		-		1,318		-		-		3,989,041
Net increase (decrease) in contract owners’ equity resulting from operations	$	147,267		47,734		451,561		(23,833	)	387,399		752,628		253,383		14,182,070

(Continued)

13

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:	NVITEmMrkts3			NVITGlUtl		NVITIntGro		NVITWLead		NVITGlFin		NVITGlHlth		NVITGlHlth3		NVITGlTech
Reinvested dividends	$	127,640		126,321		39,290		27,014		165,433		2,768		2,051		-
Mortality and expense risk charges (note 3)		-		(1,962	)	(3,637	)	(1,716	)	(3,923	)	(4,688	)	-		(8,401	)
Net investment income (loss)		127,640		124,359		35,653		25,298		161,510		(1,920	)	2,051		(8,401	)
Proceeds from mutual fund shares sold		3,001,189		1,771,745		4,538,398		1,018,063		1,456,594		788,577		1,199,242		2,150,630
Cost of mutual fund shares sold		(1,930,418	)	(1,506,076	)	(3,147,559	)	(588,274	)	(1,406,809	)	(756,788	)	(1,113,024	)	(1,700,477	)
Realized gain (loss) on investments		1,070,771		265,669		1,390,839		429,789		49,785		31,789		86,218		450,153
Change in unrealized gain (loss) on investments		3,392,089		(654,732	)	(15,627	)	692,082		(968,313	)	339,170		196,615		432,229
Net gain (loss) on investments		4,462,860		(389,063	)	1,375,212		1,121,871		(918,528	)	370,959		282,833		882,382
Reinvested capital gains		1,739,899		1,129,147		800,247		-		695,341		71,596		55,688		-
Net increase (decrease) in contract owners’ equity resulting from operations	$	6,330,399		864,443		2,211,112		1,147,169		(61,677	)	440,635		340,572		873,981
Investment activity:	NVITGlTech3			NVITGvtBd		NVITGrowth		NVITIntIdx2		NVITIntIdx6		NVITIntValI		NVITIntVal3		NVITIDAgg2
Reinvested dividends	$	-		4,430,173		31,775		23,759		8,079		53,925		209,918		605,684
Mortality and expense risk charges (note 3)		-		(155,774	)	(2,346	)	(3,593	)	-		-		-		(22,085	)
Net investment income (loss)		-		4,274,399		29,429		20,166		8,079		53,925		209,918		583,599
Proceeds from mutual fund shares sold		726,446		20,125,416		2,094,807		115,850		93,527		1,015,041		1,809,439		4,241,057
Cost of mutual fund shares sold		(620,152	)	(21,527,058	)	(1,564,344	)	(116,737	)	(78,920	)	(834,415	)	(1,489,256	)	(3,265,727	)
Realized gain (loss) on investments		106,294		(1,401,642	)	530,463		(887	)	14,607		180,626		320,183		975,330
Change in unrealized gain (loss) on investments		306,317		3,759,402		2,553,716		(12,435	)	4,283		(315,435	)	(931,852	)	(1,210,646	)
Net gain (loss) on investments		412,611		2,357,760		3,084,179		(13,322	)	18,890		(134,809	)	(611,669	)	(235,316	)
Reinvested capital gains		-		-		-		4,192		1,322		181,307		679,607		960,583
Net increase (decrease) in contract owners’ equity resulting from operations	$	412,611		6,632,159		3,113,608		11,036		28,291		100,423		277,856		1,308,866

(Continued)

14

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:	NVITIDCon2			NVITIDMod2		NVITIDModAg2		NVITIDModCon2		NVITJPBal		NVITMdCpGr		NVITMidCap		NVITMyMkt
Reinvested dividends	$	489,526		1,812,633		1,799,474		988,254		382,922		-		1,112,193		5,472,440
Mortality and expense risk charges (note 3)		(16,081	)	(42,475	)	(21,299	)	(63,285	)	(10,746	)	(4,547	)	(120,511	)	(25,508	)
Net investment income (loss)		473,445		1,770,158		1,778,175		924,969		372,176		(4,547	)	991,682		5,446,932
Proceeds from mutual fund shares sold		1,749,356		6,440,948		6,112,547		4,044,620		3,076,780		4,214,210		22,565,290		63,121,012
Cost of mutual fund shares sold		(1,730,383	)	(5,041,593	)	(4,667,538	)	(3,709,294	)	(2,304,031	)	(3,162,275	)	(15,461,329	)	(63,121,012	)
Realized gain (loss) on investments		18,973		1,399,355		1,445,009		335,326		772,749		1,051,935		7,103,961		-
Change in unrealized gain (loss) on investments		(111,573	)	(729,998	)	(491,544	)	(460,314	)	(829,543	)	474,143		(4,305,215	)	-
Net gain (loss) on investments		(92,600	)	669,357		953,465		(124,988	)	(56,794	)	1,526,078		2,798,746		-
Reinvested capital gains		324,884		1,019,405		1,501,624		847,408		472,649		-		2,350,170		-
Net increase (decrease) in contract owners’ equity resulting from operations	$	705,729		3,458,920		4,233,264		1,647,389		788,031		1,521,531		6,140,598		5,446,932
Investment activity:	NVITMyMkt5			NVITSmCapGr		NVITSmCapVal		NVITSmComp		NVITNWFund		NVITNWLead		NVITUSGro		NVITVKVal
Reinvested dividends	$	16,485,379		-		849,017		94,226		5,530,648		22,103		-		254,080
Mortality and expense risk charges (note 3)		(773,471	)	(21,368	)	(65,189	)	(147,002	)	(493,491	)	(479	)	(4,713	)	(1,622	)
Net investment income (loss)		15,711,908		(21,368	)	783,828		(52,776	)	5,037,157		21,624		(4,713	)	252,458
Proceeds from mutual fund shares sold		114,166,836		6,227,030		20,271,683		19,122,713		139,431,395		545,013		1,433,922		2,156,330
Cost of mutual fund shares sold		(114,166,836	)	(4,895,497	)	(16,999,755	)	(17,347,756	)	(102,833,919	)	(540,968	)	(1,441,896	)	(1,769,829	)
Realized gain (loss) on investments		-		1,331,533		3,271,928		1,774,957		36,597,476		4,045		(7,974	)	386,501
Change in unrealized gain (loss) on investments		-		891,419		(18,612,733	)	(13,324,530	)	(23,147,644	)	(179,532	)	1,327,479		(1,615,122	)
Net gain (loss) on investments		-		2,222,952		(15,340,805	)	(11,549,573	)	13,449,832		(175,487	)	1,319,505		(1,228,621	)
Reinvested capital gains		-		-		9,528,527		13,780,217		26,261,593		322,938		-		666,775
Net increase (decrease) in contract owners’ equity resulting from operations	$	15,711,908		2,201,584		(5,028,450	)	2,177,868		44,748,582		169,075		1,314,792		(309,388	)

(Continued)

15

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:	NVITMltSec			NBTAFasc		NBTAGuard		NBTAInt		NBTAMCGr		NBTAPart		NBTARegl		NBTARegS
Reinvested dividends	$	922,244		-		34,475		69,179		-		128,736		3,444		5,364
Mortality and expense risk charges (note 3)		(28,133	)	(1,623	)	(6,081	)	-		(24,011	)	(3,946	)	(2,699	)	-
Net investment income (loss)		894,111		(1,623	)	28,394		69,179		(24,011	)	124,790		745		5,364
Proceeds from mutual fund shares sold		6,440,567		883,817		3,270,789		701,295		4,965,066		3,635,144		656,683		445,843
Cost of mutual fund shares sold		(6,487,096	)	(802,682	)	(1,847,677	)	(556,445	)	(2,138,391	)	(2,854,320	)	(622,815	)	(428,123	)
Realized gain (loss) on investments		(46,529	)	81,135		1,423,112		144,850		2,826,675		780,824		33,868		17,720
Change in unrealized gain (loss) on investments		145,385		(109,895	)	(490,657	)	(380,354	)	6,405,275		(1,165,305	)	(28,828	)	(44,082	)
Net gain (loss) on investments		98,856		(28,760	)	932,455		(235,504	)	9,231,950		(384,481	)	5,040		(26,362	)
Reinvested capital gains		1,101		14,207		-		245,830		-		2,014,528		20,694		34,794
Net increase (decrease) in contract owners’ equity resulting from operations	$	994,068		(16,176	)	960,849		79,505		9,207,939		1,754,837		26,479		13,796
Investment activity:	NBTSocRes			OppCapAp		OppGISec3		OppGISec		OppHighlnc3		OppHighlnc		OppMStSCap		OppMSt
Reinvested dividends	$	3,373		286,511		244,490		989,341		-		314,323		15,649		454,615
Mortality and expense risk charges (note 3)		-		(185,004	)	-		(143,243	)	-		-		-		(19,177	)
Net investment income (loss)		3,373		101,507		244,490		846,098		-		314,323		15,649		435,438
Proceeds from mutual fund shares sold		408,397		17,236,796		1,888,380		11,450,938		643,817		3,498,484		563,775		6,432,589
Cost of mutual fund shares sold		(312,559	)	(10,516,894	)	(1,480,480	)	(7,924,770	)	(650,451	)	(3,412,240	)	(396,268	)	(3,944,229	)
Realized gain (loss) on investments		95,838		6,719,902		407,900		3,526,168		(6,634	)	86,244		167,507		2,488,360
Change in unrealized gain (loss) on investments		105,082		9,684,670		(391,749	)	(3,673,827	)	(19,298	)	(343,433	)	(459,107	)	(967,352	)
Net gain (loss) on investments		200,920		16,404,572		16,151		(147,659	)	(25,932	)	(257,189	)	(291,600	)	1,521,008
Reinvested capital gains		12,686		-		890,130		3,596,308		-		-		166,883		-
Net increase (decrease) in contract owners’ equity resulting from operations	$	216,979		16,506,079		1,150,771		4,294,747		(25,932	)	57,134		(109,068	)	1,956,446

(Continued)

16

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:	OppMidCap			PVITAllAst		PVITLowDur		PVITRealRet		PVITTotRet		PioVHiYield		PVTGroInc		PVTIntlEq
Reinvested dividends	$	-		132,868		2,019,831		2,137,195		6,371,804		794,925		17,993		71,341
Mortality and expense risk charges (note 3)		(37,301	)	(4,049	)	(106,088	)	(137,283	)	(349,696	)	(38,795	)	-		-
Net investment income (loss)		(37,301	)	128,819		1,913,743		1,999,912		6,022,108		756,130		17,993		71,341
Proceeds from mutual fund shares sold		8,652,049		476,214		8,349,413		7,428,151		33,273,091		2,319,816		505,470		3,148,550
Cost of mutual fund shares sold		(5,831,266	)	(467,566	)	(8,517,041	)	(8,048,450	)	(34,542,418	)	(2,347,190	)	(452,154	)	(2,547,263	)
Realized gain (loss) on investments		2,820,783		8,648		(167,628	)	(620,299	)	(1,269,327	)	(27,374	)	53,316		601,287
Change in unrealized gain (loss) on investments		141,986		(16,995	)	1,198,669		3,064,499		6,741,192		11,391		(329,857	)	(765,324	)
Net gain (loss) on investments		2,962,769		(8,347	)	1,031,041		2,444,200		5,471,865		(15,983	)	(276,541	)	(164,037	)
Reinvested capital gains		-		-		-		120,384		-		13,618		206,758		308,832
Net increase (decrease) in contract owners’ equity resulting from operations	$	2,925,468		120,472		2,944,784		4,564,496		11,493,973		753,765		(51,790	)	216,136
Investment activity:	PVTVoygr			RCFMicroCap		TRoeBIChip2		TRowEqlnc2		TRowLtdTBd2		TRowMidCap2		TRowNwAmGr		TRowPerStrBal
Reinvested dividends	$	-		814,086		2,508		1,456,840		31,808		-		-		679
Mortality and expense risk charges (note 3)		-		(147,261	)	-		(239,699	)	-		(61,195	)	(40,234	)	(68	)
Net investment income (loss)		-		666,825		2,508		1,217,141		31,808		(61,195	)	(40,234	)	611
Proceeds from mutual fund shares sold		78,925		10,858,817		388,044		18,681,309		145,201		8,729,015		2,222,261		5,357
Cost of mutual fund shares sold		(65,944	)	(8,015,729	)	(338,842	)	(16,238,497	)	(144,696	)	(7,933,689	)	(1,863,436	)	(5,510	)
Realized gain (loss) on investments		12,981		2,843,088		49,202		2,442,812		505		795,326		358,825		(153	)
Change in unrealized gain (loss) on investments		10,030		(6,178,520	)	200,505		(7,086,343	)	9,510		(119,402	)	(144,425	)	(6,873	)
Net gain (loss) on investments		23,011		(3,335,432	)	249,707		(4,643,531	)	10,015		675,924		214,400		(7,026	)
Reinvested capital gains		-		4,638,864		-		5,888,178		-		2,917,556		1,393,989		5,564
Net increase (decrease) in contract owners’ equity resulting from operations	$	23,011		1,970,257		252,215		2,461,788		41,823		3,532,285		1,568,155		(851	)

(Continued)

17

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:	DrySRGro			VEWrldEMkt		VEWrldHAs		VKUCorPlus		VKUEmMkt		VKUMCpGro		VKUUSRE		WRGrowth
Reinvested dividends	$	81,450		96,020		28,479		101,028		793,955		-		1,005,941		3
Mortality and expense risk charges (note 3)		(2,273	)	(15,269	)	(25,334	)	-		(13,604	)	(10,665	)	(114,884	)	(111	)
Net investment income (loss)		79,177		80,751		3,145		101,028		780,351		(10,665	)	891,057		(108	)
Proceeds from mutual fund shares sold		2,449,715		6,255,565		10,146,751		296,291		4,715,133		1,287,621		30,563,083		44,347
Cost of mutual fund shares sold		(2,061,015	)	(3,831,547	)	(7,399,825	)	(301,189	)	(4,871,169	)	(1,164,415	)	(16,943,704	)	(37,861	)
Realized gain (loss) on investments		388,700		2,424,018		2,746,926		(4,898	)	(156,036	)	123,206		13,619,379		6,486
Change in unrealized gain (loss) on investments		673,725		850,067		3,778,614		49,582		(291,052	)	902,460		(37,103,354	)	(6,613	)
Net gain (loss) on investments		1,062,425		3,274,085		6,525,540		44,684		(447,088	)	1,025,666		(23,483,975	)	(127	)
Reinvested capital gains		-		3,792,797		2,778,314		-		339,236		356,505		7,855,595		5,561
Net increase (decrease) in contract owners’ equity resulting from operations	$	1,141,602		7,147,633		9,306,999		145,712		672,499		1,371,506		(14,737,323	)	5,326
Investment activity:	WRRealEstS			WRSciTech		WFVOpp
Reinvested dividends	$	979		-		173,778
Mortality and expense risk charges (note 3)		(226	)	(1	)	(21,744	)
Net investment income (loss)		753		(1	)	152,034
Proceeds from mutual fund shares sold		94,643		136		5,972,875
Cost of mutual fund shares sold		(93,296	)	(135	)	(4,577,173	)
Realized gain (loss) on investments		1,347		1		1,395,702
Change in unrealized gain (loss) on investments		(30,222	)	(752	)	(3,753,806	)
Net gain (loss) on investments		(28,875	)	(751	)	(2,358,104	)
Reinvested capital gains		6,902		833		4,072,320
Net increase (decrease) in contract owners’ equity resulting from operations	$	(21,220	)	81		1,866,250

See accompanying notes to financial statements.

18

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2007 and 2006

	Total					AIMBValue				AIMCapAp				AIMCapDev
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	85,461,783		71,131,320		43,908		25,703		-		861		(26,701	)	(23,827	)
Realized gain (loss) on investments		207,586,387		166,896,656		348,417		125,383		74,023		22,497		1,048,026		932,075
Change in unrealized gain (loss) on investments		(135,244,323	)	167,698,301		(710,460	)	446,439		106,701		64,228		(966,703	)	577,441
Reinvested capital gains		219,084,030		96,963,068		470,561		354,271		-		-		1,262,845		214,763
Net increase (decrease) in contract owners’ equity resulting from operations		376,887,877		502,689,345		152,426		951,796		180,724		87,586		1,317,467		1,700,452
Equity transactions:
Purchase payments received from contract owners (note 6)		417,190,529		573,057,603		1,197,541		1,176,451		250,700		237,149		1,151,457		1,353,692
Transfers between funds		-		-		(748,208	)	296,702		(121,938	)	201,737		1,923,219		1,319,907
Surrenders (note 6)		(256,215,304	)	(387,471,327	)	(641,252	)	(218,710	)	(18,388	)	(63,473	)	(719,451	)	(524,411	)
Death benefits (note 4)		(11,792,491	)	(9,884,896	)	(26,674	)	(23,642	)	(154	)	(152	)	(31,305	)	(6,487	)
Net policy repayments (loans) (note 5)		(29,372,844	)	(17,332,223	)	(34,194	)	(49,371	)	(14,072	)	(32,507	)	(31,954	)	(22,732	)
Deductions for surrender charges (note 2d)		(6,501,412	)	(7,673,977	)	(29,400	)	(25,638	)	(6,471	)	(11,034	)	(15,744	)	(7,078	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(128,028,675	)	(129,174,617	)	(356,962	)	(375,194	)	(87,879	)	(88,470	)	(437,771	)	(457,957	)
Asset charges (note 3):
FPVUL & VEL contracts		(6,839,415	)	(6,179,710	)	(22,990	)	(20,591	)	(5,437	)	(4,559	)	(15,294	)	(12,480	)
MSP contracts		(318,936	)	(268,091	)	(395	)	(331	)	(195	)	(52	)	(359	)	(272	)
SL contracts		(1,297,927	)	(1,272,062	)	(2,809	)	(2,357	)	(2,236	)	(1,757	)	(1,105	)	(744	)
Adjustments to maintain reserves		(18,753	)	53,319		34		462		6		10		916		8,280
Net equity transactions		(23,195,228	)	13,854,019		(665,309	)	757,781		(6,064	)	236,892		1,822,608		1,649,718
Net change in contract owners’ equity		353,692,649		516,543,364		(512,883	)	1,709,577		174,660		324,478		3,140,075		3,350,170
Contract owners’ equity beginning of period		4,464,442,368		3,947,899,004		8,574,647		6,865,070		1,561,030		1,236,552		12,650,035		9,299,865
Contract owners’ equity end of period	$	4,818,135,017		4,464,442,368		8,061,764		8,574,647		1,735,690		1,561,030		15,790,110		12,650,035
CHANGES IN UNITS:
Beginning units		307,762,808		302,538,590		491,676		445,372		102,104		85,976		650,168		556,838
Units purchased		70,093,417		72,274,994		94,233		109,212		17,135		29,998		183,074		220,422
Units redeemed		(70,799,559	)	(67,050,776	)	(130,527	)	(62,908	)	(17,887	)	(13,870	)	(99,854	)	(127,092	)
Ending units		307,056,666		307,762,808		455,382		491,676		101,352		102,104		733,388		650,168

(Continued)

19

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	AIMIntGr					AlVGrIncA				AlVIntlValA				AlVSmMdCpA
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	61,812		126,254		251,947		200,486		211,324		27,039		45,628		15,779
Realized gain (loss) on investments		1,596,611		2,296,573		591,281		619,350		677,301		(95,855	)	202,495		172,807
Change in unrealized gain (loss) on investments		1,281,739		1,887,880		(848,511	)	1,156,397		(1,000,621	)	1,454,350		(661,993	)	2,419
Reinvested capital gains		-		-		1,017,690		880,352		932,439		52,921		346,724		260,883
Net increase (decrease) in contract owners’ equity resulting from operations		2,940,162		4,310,707		1,012,407		2,856,585		820,443		1,438,455		(67,146	)	451,888
Equity transactions:
Purchase payments received from contract owners (note 6)		2,910,438		2,185,394		1,244,527		1,332,130		572,520		526,879		352,912		475,185
Transfers between funds		11,396,412		2,244,556		863,443		(847,376	)	19,294,463		11,770,029		2,409,121		(661,700	)
Surrenders (note 6)		(335,911	)	(4,336,178	)	(1,212,807	)	(267,171	)	(7,839	)	(1,408,723	)	(217,939	)	(159,244	)
Death benefits (note 4)		(21,095	)	(15,626	)	(14,872	)	(8,311	)	(56,986	)	-		(5,672	)	(2,134	)
Net policy repayments (loans) (note 5)		(242,049	)	(196	)	(118,508	)	(46,911	)	(35,361	)	-		(7,831	)	(50,912	)
Deductions for surrender charges (note 2d)		-		-		(9,122	)	(13,479	)	-		-		(15,937	)	(6,312	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(427,246	)	(306,400	)	(358,485	)	(361,822	)	(308,813	)	(44,346	)	(161,134	)	(131,298	)
Asset charges (note 3):
FPVUL & VEL contracts		-		-		(14,823	)	(13,967	)	-		-		(15,421	)	(10,153	)
MSP contracts		-		-		(121	)	(171	)	-		-		(331	)	(292	)
SL contracts		-		-		(1,930	)	(1,569	)	-		-		(2,042	)	(4,482	)
Adjustments to maintain reserves		886		6,023		596		967		1,897		78		(11	)	49
Net equity transactions		13,281,435		(222,427	)	377,898		(227,680	)	19,459,881		10,843,917		2,335,715		(551,293	)
Net change in contract owners’ equity		16,221,597		4,088,280		1,390,305		2,628,905		20,280,324		12,282,372		2,268,569		(99,405	)
Contract owners’ equity beginning of period		19,668,756		15,580,476		19,960,239		17,331,334		12,282,372		_		3,385,395		3,484,800
Contract owners’ equity end of period	$	35,890,353		19,668,756		21,350,544		19,960,239		32,562,696		12,282,372		5,653,964		3,385,395
CHANGES IN UNITS:
Beginning units		1,098,252		1,111,978		1,107,894		1,125,026		1,085,100		-		168,136		198,030
Units purchased		850,615		398,004		472,578		155,838		1,879,153		1,233,682		129,927		27,715
Units redeemed		(198,855	)	(411,730	)	(453,326	)	(172,970	)	(238,907	)	(148,582	)	(21,237	)	(57,609	)
Ending units		1,750,012		1,098,252		1,127,146		1,107,894		2,725,346		1,085,100		276,826		168,136

(Continued)

20

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	ACVPIncGr					ACVPInflPro2				ACVPInt				ACVPInt3
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	511,828		506,897		296,823		222,068		284,353		683,075		61,541		85,854
Realized gain (loss) on investments		2,565,198		1,559,858		(46,841	)	(85,474	)	5,761,892		3,645,694		148,430		106,709
Change in unrealized gain (loss) on investments		(3,011,606	)	2,321,259		393,108		(15,319	)	1,798,877		6,143,566		1,432,507		1,216,942
Reinvested capital gains		-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations		65,420		4,388,014		643,090		121,275		7,845,122		10,472,335		1,642,478		1,409,505
Equity transactions:
Purchase payments received from contract owners (note 6)		1,912,420		2,980,810		586,693		928,163		1,129,512		2,241,271		2,004,931		2,336,741
Transfers between funds		(2,582,550	)	(2,604,445	)	70,579		324,789		(3,168,405	)	(3,443,452	)	1,486,520		705,137
Surrenders (note 6)		(1,531,841	)	(952,973	)	(286,864	)	(348,613	)	(4,446,804	)	(2,510,699	)	(454,710	)	(331,029	)
Death benefits (note 4)		(37,993	)	(318,302	)	(27,458	)	(22,996	)	(45,503	)	(37,490	)	(5,183	)	(49,540	)
Net policy repayments (loans) (note 5)		(177,542	)	(226,058	)	(59,228	)	(327,756	)	(344,380	)	(339,142	)	13,108		132,448
Deductions for surrender charges (note 2d)		(76,984	)	(112,887	)	(30,809	)	(19,201	)	(54,603	)	(94,716	)	(33,510	)	(36,083	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(1,114,346	)	(1,246,462	)	(268,880	)	(319,214	)	(1,414,634	)	(1,524,282	)	(521,041	)	(404,972	)
Asset charges (note 3):
FPVUL & VEL contracts		(80,140	)	(79,777	)	(22,072	)	(21,467	)	(67,758	)	(70,652	)	(37,100	)	(23,569	)
MSP contracts		(3,709	)	(5,628	)	(538	)	(814	)	(2,679	)	(2,348	)	(267	)	(307	)
SL contracts		(14,574	)	(14,084	)	(4,114	)	(2,931	)	(12,923	)	(12,441	)	(4,937	)	(3,162	)
Adjustments to maintain reserves		161		(11	)	(693	)	767		399		1,869		73		44
Net equity transactions		(3,707,098	)	(2,579,817	)	(43,383	)	190,727		(8,427,778	)	(5,792,082	)	2,447,883		2,325,708
Net change in contract owners’ equity		(3,641,678	)	1,808,197		599,707		312,002		(582,656	)	4,680,253		4,090,361		3,735,213
Contract owners’ equity beginning of period		29,369,605		27,561,408		6,258,062		5,946,060		49,303,592		44,623,339		8,009,559		4,274,346
Contract owners’ equity end of period	$	25,727,927		29,369,605		6,857,769		6,258,062		48,720,936		49,303,592		12,099,920		8,009,559
CHANGES IN UNITS:
Beginning units		1,778,146		1,931,714		555,240		535,932		3,354,086		3,726,960		548,782		366,150
Units purchased		200,389		217,280		145,441		119,512		289,620		281,367		224,236		251,977
Units redeemed		(420,833	)	(370,848	)	(144,991	)	(100,204	)	(813,642	)	(654,241	)	(70,780	)	(69,345	)
Ending units		1,557,702		1,778,146		555,690		555,240		2,830,064		3,354,086		702,238		548,782

(Continued)

21

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	ACVPMdCpV					ACVPUltra				ACVPVal				ACVPVista1
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	17,552		7,230		(2,826	)	(4,670	)	1,146,462		943,936		(1,573	)	(376	)
Realized gain (loss) on investments		84,641		39,846		101,810		349,714		1,847,610		4,128,014		149,244		5,558
Change in unrealized gain (loss) on investments		(281,936	)	69,490		772,249		(515,226	)	(12,797,015	)	598,190		352,778		(3,442	)
Reinvested capital gains		36,360		36,808		-		-		6,248,743		6,275,420		-		410
Net increase (decrease) in contract owners’ equity resulting from operations		(143,383	)	153,374		871,233		(170,182	)	(3,554,200	)	11,945,560		500,449		2,150
Equity transactions:
Purchase payments received from contract owners (note 6)		245,102		171,210		733,652		709,134		6,271,631		7,141,601		285,433		37,713
Transfers between funds		1,178,146		293,492		911,467		(386,691	)	(1,015,182	)	(3,927,338	)	4,544,583		236,263
Surrenders (note 6)		(43,795	)	(1,899	)	(401,827	)	(2,621,454	)	(4,735,105	)	(10,120,839	)	(122,930	)	(10,557	)
Death benefits (note 4)		(1,833	)	-		(97,580	)	(47	)	(157,391	)	(279,435	)	-		-
Net policy repayments (loans) (note 5)		(36,091	)	(5,739	)	17,070		(101,504	)	(746,037	)	(950,746	)	(25,416	)	(786	)
Deductions for surrender charges (note 2d)		(2,369	)	(370	)	(23,662	)	(7,518	)	(126,136	)	(188,437	)	(1,382	)	(462	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(106,743	)	(42,240	)	(205,932	)	(252,783	)	(2,586,369	)	(2,646,918	)	(55,422	)	(10,111	)
Asset charges (note 3):
FPVUL & VEL contracts		(8,168	)	(2,707	)	(11,192	)	(10,529	)	(186,534	)	(173,079	)	(4,984	)	(648	)
MSP contracts		(402	)	(68	)	(237	)	(93	)	(5,553	)	(4,929	)	(82	)	-
SL contracts		(1,231	)	(392	)	(1,442	)	(1,283	)	(34,123	)	(38,866	)	(571	)	(31	)
Adjustments to maintain reserves		28		73		(9,407	)	(45,021	)	177		(54	)	66		62
Net equity transactions		1,222,644		411,360		910,910		(2,717,789	)	(3,320,623	)	(11,189,040	)	4,619,295		251,443
Net change in contract owners’ equity		1,079,261		564,734		1,782,143		(2,887,971	)	(6,874,823	)	756,520		5,119,744		253,593
Contract owners’ equity beginning of period		1,212,113		647,379		3,978,277		6,866,248		75,281,642		74,525,122		348,465		94,872
Contract owners’ equity end of period	$	2,291,374		1,212,113		5,760,420		3,978,277		68,406,819		75,281,642		5,468,209		348,465
CHANGES IN UNITS:
Beginning units		88,992		57,178		363,362		607,908		3,537,736		4,162,374		27,968		8,278
Units purchased		98,031		36,199		150,554		79,816		545,786		433,039		293,455		21,632
Units redeemed		(14,823	)	(4,385	)	(78,698	)	(324,362	)	(681,560	)	(1,057,677	)	(7,853	)	(1,942	)
Ending units		172,200		88,992		435,218		363,362		3,401,962		3,537,736		313,570		27,968

(Continued)

22

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	BRIntIndex					BRLrgCp				CalVSSocEq				CSTGlobSmCp
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(1,459	)	50,247		25,787		9,579		(281	)	(194	)	(211	)	(325	)
Realized gain (loss) on investments		(46,062	)	8,081		11,008		68,179		14,192		447		84,356		117,852
Change in unrealized gain (loss) on investments		180,030		(180,415	)	(384,037	)	(10,146	)	(10,352	)	10,994		(105,235	)	(23,716	)
Reinvested capital gains		-		331,284		515,034		213,679		6,543		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations		132,509		209,197		167,792		281,291		10,102		11,247		(21,090	)	93,811
Equity transactions:
Purchase payments received from contract owners (note 6)		83,852		90,420		47,721		190,017		14,065		19,620		51,793		74,146
Transfers between funds		(1,595,988	)	1,182,552		1,589,664		(455,857	)	54,446		64,665		(92,106	)	(58,140	)
Surrenders (note 6)		(18,921	)	(9,132	)	(14,083	)	(50,505	)	(73,635	)	-		(83,913	)	(42,970	)
Death benefits (note 4)		(10,826	)	-		(5,537	)	-		(81	)	-		-		(18,844	)
Net policy repayments (loans) (note 5)		-		-		-		-		-		-		(6,212	)	(11,747	)
Deductions for surrender charges (note 2d)		-		-		-		-		-		-		(938	)	(869	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(11,115	)	(19,146	)	(21,324	)	(16,166	)	(1,312	)	(934	)	(27,327	)	(32,002	)
Asset charges (note 3):
FPVUL & VEL contracts		-		-		-		-		-		-		(2,735	)	(2,756	)
MSP contracts		-		-		-		-		-		-		(16	)	(16	)
SL contracts		-		-		-		-		-		-		(233	)	(281	)
Adjustments to maintain reserves		(44,731	)	257		7		(119	)	(3	)	-		27		(9	)
Net equity transactions		(1,597,729	)	1,244,951		1,596,448		(332,630	)	(6,520	)	83,351		(161,660	)	(93,488	)
Net change in contract owners’ equity		(1,465,220	)	1,454,148		1,764,240		(51,339	)	3,582		94,598		(182,750	)	323
Contract owners’ equity beginning of period		1,465,220		11,072		1,972,030		2,023,369		131,054		36,456		810,740		810,417
Contract owners’equity end of period	$	-		1,465,220		3,736,270		1,972,030		134,636		131,054		627,990		810,740
CHANGES IN UNITS:
Beginning units		100,516		952		149,024		174,834		8,540		2,606		56,062		64,818
Units purchased		8,535		101,770		126,531		35,154		4,618		6,249		3,480		4,646
Units redeemed		(109,051	)	(2,206	)	(13,853	)	(60,964	)	(5,186	)	(315	)	(14,718	)	(13,402	)
Ending units		-		100,516		261,702		149,024		7,972		8,540		44,824		56,062

(Continued)

23

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

	CSTIntFoc					CSTLCapV				DryIPMidCap				DryIPSmCap
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	24,452		19,527		23,333		15,228		2,294		1,263		56,147		48,995
Realized gain (loss) on investments		99,635		89,234		118,314		86,847		(41,974	)	(19,997	)	1,430,465		612,093
Change in unrealized gain (loss) on investments		219,876		224,640		(439,671	)	203,991		(74,440	)	(77,469	)	(2,636,043	)	1,659,449
Reinvested capital gains		-		-		348,824		-		132,936		164,113		1,029,058		494,024
Net increase (decrease) in contract owners’ equity resulting from operations		343,963		333,401		50,800		306,066		18,816		67,910		(120,373	)	2,814,561
Equity transactions:
Purchase payments received from contract owners (note 6)		81,341		112,031		128,063		143,156		111,885		204,487		2,283,100		2,929,214
Transfers between funds		100,028		(13,728	)	(47,961	)	2,425		403,087		85,266		1,678,848		806,840
Surrenders (note 6)		(123,744	)	(163,836	)	(135,042	)	(332,188	)	(282,055	)	(1,816	)	(2,061,319	)	(1,228,153	)
Death benefits (note 4)		(8,395	)	-		(72,029	)	(14,371	)	(214	)	(247	)	(4,170	)	(25,726	)
Net policy repayments (loans) (note 5)		(9,044	)	(2,352	)	(21,503	)	(1,495	)	-		-		(174,364	)	172,200
Deductions for surrender charges (note 2d)		(855	)	(3,086	)	(5,349	)	(6,014	)	-		-		(38,645	)	(38,750	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(76,002	)	(74,131	)	(61,573	)	(66,132	)	(12,776	)	(15,087	)	(655,341	)	(671,685	)
Asset charges (note 3):
FPVUL & VEL contracts		(7,110	)	(6,351	)	(5,446	)	(5,227	)	-		-		(34,319	)	(31,087	)
MSP contracts		(655	)	(556	)	(245	)	(585	)	-		-		(509	)	(252	)
SL contracts		(2,077	)	(1,730	)	(1,931	)	(1,820	)	-		-		(12,395	)	(11,644	)
Adjustments to maintain reserves		59		(16	)	(36	)	54		(5	)	(27	)	(76	)	(416	)
Net equity transactions		(46,454	)	(153,755	)	(223,051	)	(282,197	)	219,922		272,576		980,809		1,900,541
Net change in contract owners’ equity		297,509		179,646		(172,251	)	23,869		238,738		340,486		860,436		4,715,102
Contract owners’ equity beginning of period		2,029,415		1,849,769		1,833,756		1,809,887		1,098,529		758,043		24,429,054		19,713,952
Contract owners’ equity end of period	$	2,326,924		2,029,415		1,661,505		1,833,756		1,337,267		1,098,529		25,289,490		24,429,054
CHANGES IN UNITS:
Beginning units		129,014		139,456		102,220		119,654		62,728		46,536		1,557,038		1,435,892
Units purchased		12,795		8,937		8,719		13,626		37,635		24,949		602,368		323,159
Units redeemed		(14,369	)	(19,379	)	(20,177	)	(31,060	)	(25,173	)	(8,757	)	(536,062	)	(202,013	)
Ending units		127,440		129,014		90,762		102,220		75,190		62,728		1,623,344		1,557,038

(Continued)

24

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	DryStkIx					DryVApp				DryVDevLd				DryVIntVal
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	6,206,965		5,699,240		516,003		467,254		5,945		3,628		507,706		363,221
Realized gain (loss) on investments		25,261,854		11,897,478		2,000,102		1,580,401		(8,908	)	19,205		2,076,858		2,441,440
Change in unrealized gain (loss) on investments		(11,213,766	)	35,413,947		(36,012	)	3,002,962		(186,955	)	(67,857	)	(5,890,842	)	1,821,727
Reinvested capital gains		-		-		-		-		103,932		75,020		4,852,609		2,561,432
Net increase (decrease) in contract owners’ equity resulting from operations		20,255,053		53,010,665		2,480,093		5,050,617		(85,986	)	29,996		1,546,331		7,187,820
Equity transactions:
Purchase payments received from contract owners (note 6)		24,508,912		30,357,131		3,353,471		4,078,265		87,987		171,060		3,426,310		2,541,484
Transfers between funds		1,308,614		3,805,115		(1,547,247	)	(2,345,604	)	(97,980	)	(137,147	)	(7,669,883	)	3,545,051
Surrenders (note 6)		(29,844,299	)	(67,888,901	)	(2,082,693	)	(1,732,303	)	(22,898	)	(49,066	)	(1,507,377	)	(2,320,877	)
Death benefits (note 4)		(769,297	)	(962,593	)	(79,654	)	(93,179	)	-		-		(99,136	)	(15,539	)
Net policy repayments (loans) (note 5)		(3,201,321	)	(1,978,995	)	(140,908	)	(182,056	)	(12,090	)	(13,508	)	(2,323	)	(119	)
Deductions for surrender charges (note 2d)		(501,356	)	(694,033	)	(80,259	)	(81,826	)	(2,621	)	(7,669	)	-		-
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(11,291,321	)	(11,797,426	)	(1,198,375	)	(1,296,162	)	(36,440	)	(47,214	)	(419,219	)	(459,041	)
Asset charges (note 3):
FPVUL & VEL contracts		(547,091	)	(524,708	)	(76,825	)	(72,977	)	(2,983	)	(3,269	)	-		-
MSP contracts		(19,329	)	(18,172	)	(1,628	)	(1,654	)	-		(2	)	-		-
SL contracts		(191,574	)	(234,237	)	(11,144	)	(12,673	)	(287	)	(453	)	-		-
Adjustments to maintain reserves		6,952		2,962		(14	)	133		21		2		114		1,429
Net equity transactions		(20,541,110	)	(49,933,857	)	(1,865,277	)	(1,740,036	)	(87,291	)	(87,266	)	(6,271,514	)	3,292,388
Net change in contract owners’ equity		(286,057	)	3,076,808		614,816		3,310,581		(173,277	)	(57,270	)	(4,725,183	)	10,480,208
Contract owners’ equity beginning of period		386,079,693		383,002,885		34,856,022		31,545,441		830,482		887,752		40,662,127		30,181,919
Contract owners’ equity end of period	$	385,793,636		386,079,693		35,470,838		34,856,022		657,205		830,482		35,936,944		40,662,127
CHANGES IN UNITS:
Beginning units		28,048,062		31,982,494		2,409,358		2,474,314		52,662		58,416		1,939,658		1,760,980
Units purchased		4,719,678		4,117,062		607,099		365,532		5,842		9,815		269,097		420,700
Units redeemed		(5,621,246	)	(8,051,494	)	(664,085	)	(430,488	)	(11,648	)	(15,569	)	(559,651	)	(242,022	)
Ending units		27,146,494		28,048,062		2,352,372		2,409,358		46,856		52,662		1,649,104		1,939,658

(Continued)

25

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	DWSVHghRtrn					FedAmLead				FedCapAp				FedMrkOp
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	4,245		(84	)	4,935		4,783		3,604		2,870		483		-
Realized gain (loss) on investments		3,825		16		5,747		3,656		33,440		4,163		(129	)	4
Change in unrealized gain (loss) on investments		(35,281	)	3,015		(77,319	)	3,909		9,103		51,818		(1,040	)	1,096
Reinvested capital gains		4,673		6,415		36,771		39,581		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations		(22,538	)	9,362		(29,866	)	51,929		46,147		58,851		(686	)	1,100
Equity transactions:
Purchase payments received from contract owners (note 6)		49,254		-		28,866		30,290		60,780		75,660		4,266		1,073
Transfers between funds		559,320		161,696		(55,029	)	(8,439	)	29,775		(11,524	)	3,199		39,280
Surrenders (note 6)		-		-		(2,842	)	(4,011	)	(13,727	)	(4,403	)	-		-
Death benefits (note 4)		(1,116	)	-		-		(256	)	(13,721	)	-		-		-
Net policy repayments (loans) (note 5)		-		-		(1,178	)	(2,610	)	(4,101	)	(8,462	)	-		-
Deductions for surrender charges (note 2d)		-		-		(792	)	(1,591	)	(2,438	)	(1,112	)	-		-
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(11,816	)	(196	)	(14,388	)	(16,466	)	(14,174	)	(25,262	)	(1,614	)	(236	)
Asset charges (note 3):
FPVUL & VEL contracts		-		-		(1,294	)	(1,273	)	(1,541	)	(1,215	)	(168	)	(31	)
MSP contracts		-		-		-		-		-		-		-		-
SL contracts		-		-		(218	)	(214	)	(437	)	(380	)	-		-
Adjustments to maintain reserves		16		23		4		(18	)	(3	)	22		3		21
Net equity transactions		595,658		161,523		(46,871	)	(4,588	)	40,413		23,324		5,686		40,107
Net change in contract owners’ equity		573,120		170,885		(76,737	)	47,341		86,560		82,175		5,000		41,207
Contract owners’ equity beginning of period		170,885		-		362,314		314,973		427,702		345,527		41,207		-
Contract owners’ equity end of period	$	744,005		170,885		285,577		362,314		514,262		427,702		46,207		41,207
CHANGES IN UNITS:
Beginning units		15,180		-		21,354		21,684		27,898		26,192		3,964		-
Units purchased		53,687		15,198		1,768		1,993		5,907		5,706		723		3,990
Units redeemed		(1,125	)	(18	)	(4,490	)	(2,323	)	(3,277	)	(4,000	)	(175	)	(26	)
Ending units		67,742		15,180		18,632		21,354		30,528		27,898		4,512		3,964

(Continued)

26

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	FedQualBd					FidVIPEIS				FidVIPGrS				FidVIPHIS
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	2,953,403		3,673,134		1,815,435		3,157,897		569,631		191,930		2,059,223		1,769,398
Realized gain (loss) on investments		(1,214,559	)	(2,969,254	)	6,804,728		3,953,839		5,603,662		414,070		(189,067	)	(230,023	)
Change in unrealized gain (loss) on investments		608,709		1,422,971		(15,905,975	)	(784,378	)	18,441,027		5,487,027		(1,231,809	)	928,822
Reinvested capital gains		-		-		9,084,163		12,637,235		97,886		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations		2,347,553		2,126,851		1,798,351		18,964,593		24,712,206		6,093,027		638,347		2,468,197
Equity transactions:
Purchase payments received from contract owners (note 6)		3,486,840		7,570,046		9,436,395		11,154,923		8,468,007		10,773,886		923,789		1,731,392
Transfers between funds		(3,943,312	)	(25,553,825	)	(4,324,122	)	(1,222,766	)	121,521		(4,832,624	)	2,505,872		(1,845,924	)
Surrenders (note 6)		(8,246,164	)	(24,601,230	)	(7,905,307	)	(4,730,061	)	(8,666,206	)	(4,190,231	)	(1,812,283	)	(745,502	)
Death benefits (note 4)		(41,641	)	(620,801	)	(304,543	)	(297,737	)	(256,936	)	(300,161	)	(59,045	)	(156,750	)
Net policy repayments (loans) (note 5)		(299,044	)	(113,944	)	(773,918	)	(715,261	)	(925,611	)	(973,193	)	(168,450	)	(68,547	)
Deductions for surrender charges (note 2d)		(110,230	)	(146,590	)	(146,063	)	(218,615	)	(219,666	)	(318,657	)	(34,988	)	(37,870	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(1,647,824	)	(2,059,972	)	(3,867,630	)	(3,938,665	)	(4,546,257	)	(4,709,990	)	(850,419	)	(936,225	)
Asset charges (note 3):
FPVUL & VEL contracts		(77,644	)	(77,916	)	(251,651	)	(227,733	)	(265,028	)	(243,847	)	(41,429	)	(45,759	)
MSP contracts		(3,713	)	(3,452	)	(9,992	)	(9,452	)	(8,414	)	(8,061	)	(1,984	)	(2,117	)
SL contracts		(26,222	)	(54,285	)	(45,843	)	(39,619	)	(34,104	)	(33,457	)	(6,809	)	(7,564	)
Adjustments to maintain reserves		15		380		42		517		105		(357	)	5		36
Net equity transactions		(10,908,939	)	(45,661,589	)	(8,192,633	)	(244,469	)	(6,332,589	)	(4,836,692	)	454,259		(2,114,830	)
Net change in contract owners’ equity		(8,561,386	)	(43,534,738	)	(6,394,282	)	18,720,124		18,379,617		1,256,335		1,092,606		353,367
Contract owners’ equity beginning of period		51,172,958		94,707,696		114,733,141		96,013,017		100,909,097		99,652,762		23,999,079		23,645,712
Contract owners’ equity end of period	$	42,611,572		51,172,958		108,338,859		114,733,141		119,288,714		100,909,097		25,091,685		23,999,079
CHANGES IN UNITS:
Beginning units		3,505,854		6,767,940		6,732,512		6,711,838		8,389,342		8,629,460		2,029,708		2,215,374
Units purchased		355,799		558,517		1,067,632		860,926		1,052,833		1,461,572		437,840		151,651
Units redeemed		(1,092,643	)	(3,820,603	)	(1,540,596	)	(840,252	)	(1,661,947	)	(1,701,690	)	(443,764	)	(337,317	)
Ending units		2,769,010		3,505,854		6,259,548		6,732,512		7,780,228		8,389,342		2,023,784		2,029,708

(Continued)

27

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	FidVIPHISR				FidVIPOvS				FidVIPOvSR				FidVIPConS
Investment activity:	2007			2006	2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	190,145		-	1,538,186		319,414		538,729		70,073		1,651,948		1,836,307
Realized gain (loss) on investments		(11,525	)	-	3,463,896		4,071,039		738,640		282,979		10,847,502		11,699,925
Change in unrealized gain (loss) on investments		(188,751	)	-	(432,859	)	2,726,908		309,061		1,463,144		(35,362,204	)	(9,318,194	)
Reinvested capital gains		-		-	3,263,967		306,743		1,044,686		52,656		57,020,823		15,541,966
Net increase (decrease) in contract owners’ equity resulting from operations		(10,131	)	-	7,833,190		7,424,104		2,631,116		1,868,852		34,158,069		19,760,004
Equity transactions:
Purchase payments received from contract owners (note 6)		506,305		-	1,393,703		3,018,320		2,730,506		3,546,542		15,364,595		17,548,803
Transfers between funds		1,866,571		-	3,832,575		748,578		859,448		3,202,427		12,122,488		17,996,364
Surrenders (note 6)		(91,357	)	-	(3,929,899	)	(9,482,188	)	(1,032,737	)	(395,114	)	(10,820,047	)	(16,106,681	)
Death benefits (note 4)		(60	)	-	(116,465	)	(109,513	)	(58,006	)	(55,623	)	(388,082	)	(461,959	)
Net policy repayments (loans) (note 5)		66,310		-	(209,007	)	(259,760	)	(71,019	)	(132,023	)	(2,377,897	)	(958,341	)
Deductions for surrender charges (note 2d)		(1,366	)	-	(43,263	)	(92,201	)	(57,649	)	(29,900	)	(261,504	)	(333,435	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(43,218	)	-	(1,145,573	)	(1,240,859	)	(789,336	)	(660,377	)	(6,306,046	)	(6,277,815	)
Asset charges (note 3):
FPVUL & VEL contracts		(3,211	)	-	(54,563	)	(58,040	)	(59,242	)	(40,373	)	(407,397	)	(366,059	)
MSP contracts		(39	)	-	(1,869	)	(1,764	)	(749	)	(458	)	(12,811	)	(10,744	)
SL contracts		(717	)	-	(18,308	)	(26,278	)	(9,858	)	(6,533	)	(71,024	)	(58,385	)
Adjustments to maintain reserves		177		-	851		4,520		46		35		2,206		9,345
Net equity transactions		2,299,395		-	(291,819	)	(7,499,185	)	1,511,404		5,428,603		6,844,480		10,981,093
Net change in contract owners’ equity		2,289,264		-	7,541,371		(75,081	)	4,142,520		7,297,455		41,002,549		30,741,097
Contract owners’ equity beginning of period		-		-	47,338,183		47,413,264		14,537,128		7,239,673		196,681,878		165,940,781
Contract owners’ equity end of period	$	2,289,264		-	54,879,554		47,338,183		18,679,648		14,537,128		237,684,427		196,681,878
CHANGES IN UNITS:
Beginning units		-		-	2,993,058		3,443,834		985,990		579,174		10,119,864		9,413,026
Units purchased		243,213		-	881,861		467,094		243,519		513,057		2,134,906		2,097,457
Units redeemed		(11,635	)	-	(835,593	)	(917,870	)	(148,717	)	(106,241	)	(1,646,596	)	(1,390,619	)
Ending units		231,578		-	3,039,326		2,993,058		1,080,792		985,990		10,608,174		10,119,864

(Continued)

28

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	FidVIPIGBdS					FidVIPGrOpS				FidVIPMCapS				FidVIPVaIS
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	472,089		296,348		(2,839	)	88,641		243,277		49,604		78,528		36,639
Realized gain (loss) on investments		(159,012	)	(19,947	)	1,376,636		640,917		745,569		1,438,084		47,654		33,572
Change in unrealized gain (loss) on investments		191,770		100,550		1,321,560		(47,920	)	1,091,975		(1,316,944	)	(544,851	)	(146,173	)
Reinvested capital gains		-		18,136		-		-		3,082,876		2,795,083		911,629		1,229,164
Net increase (decrease) in contract owners’ equity resulting from operations		504,847		395,087		2,695,357		681,638		5,163,697		2,965,827		492,960		1,153,202
Equity transactions:
Purchase payments received from contract owners (note 6)		1,397,081		1,251,199		1,022,660		1,310,585		3,383,726		3,825,936		622,938		644,976
Transfers between funds		2,828,218		2,768,214		(881,067	)	(2,918,008	)	6,786,942		6,536,971		922,325		(349,532	)
Surrenders (note 6)		(486,145	)	(266,480	)	(916,941	)	(708,659	)	(1,073,399	)	(3,816,678	)	(400,485	)	(184,507	)
Death benefits (note 4)		(11,839	)	(48,217	)	(44,567	)	(67,362	)	(228,522	)	(40,786	)	(3,257	)	-
Net policy repayments (loans) (note 5)		(212,271	)	(69,270	)	(117,826	)	(81,816	)	(309,506	)	(330,065	)	(74,159	)	(39,625	)
Deductions for surrender charges (note 2d)		(26,502	)	(24,824	)	(40,849	)	(49,983	)	(65,796	)	(67,158	)	(25,264	)	(25,372	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(424,645	)	(401,450	)	(645,559	)	(717,100	)	(1,314,125	)	(1,213,577	)	(322,891	)	(323,644	)
Asset charges (note 3):
FPVUL & VEL contracts		(29,342	)	(24,573	)	(45,857	)	(44,252	)	(90,744	)	(76,557	)	(25,512	)	(21,447	)
MSP contracts		(2,328	)	(1,910	)	(1,877	)	(1,936	)	(2,757	)	(2,316	)	(371	)	(329	)
SL contracts		(10,192	)	(7,214	)	(9,373	)	(8,107	)	(18,372	)	(12,247	)	(1,051	)	(972	)
Adjustments to maintain reserves		48		22		(40	)	(354	)	(10	)	(99	)	(31	)	78
Net equity transactions		3,022,082		3,175,497		(1,681,296	)	(3,286,992	)	7,067,437		4,803,424		692,242		(300,374	)
Net change in contract owners’ equity		3,526,929		3,570,584		1,014,061		(2,605,354	)	12,231,134		7,769,251		1,185,202		852,828
Contract owners’ equity beginning of period		10,999,757		7,429,173		13,099,499		15,704,853		29,192,082		21,422,831		8,062,630		7,209,802
Contract owners’ equity end of period	$	14,526,686		10,999,757		14,113,560		13,099,499		41,423,216		29,192,082		9,247,832		8,062,630
CHANGES IN UNITS:
Beginning units		970,196		683,006		1,160,140		1,475,652		1,250,190		1,032,350		500,988		520,574
Units purchased		472,236		361,673		165,625		129,102		428,117		453,110		92,710		46,790
Units redeemed		(211,746	)	(74,483	)	(299,611	)	(444,614	)	(139,495	)	(235,270	)	(49,288	)	(66,376	)
Ending units		1,230,686		970,196		1,026,154		1,160,140		1,538,812		1,250,190		544,410		500,988

(Continued)

29

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	FidVIPEnergyS2					FidVIPFree10S				FidVIPFree20S				FidVIPFree30S
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	12,190		45,935		37,076		11,056		61,125		19,492		38,873		8,990
Realized gain (loss) on investments		96,216		242,500		35,962		7,228		51,780		6,147		33,257		6,659
Change in unrealized gain (loss) on investments		3,011,353		(797,228	)	(16,903	)	19,784		(8,653	)	71,282		(2,052	)	31,837
Reinvested capital gains		563,500		1,001,993		35,183		2,850		84,690		12,045		65,958		6,386
Net increase (decrease) in contract owners’ equity resulting from operations		3,683,259		493,200		91,318		40,918		188,942		108,966		136,036		53,872
Equity transactions:
Purchase payments received from contract owners (note 6)		1,284,348		1,203,767		45,536		18,583		456,951		364,597		380,310		212,287
Transfers between funds		2,883,022		3,319,981		1,016,747		473,105		1,313,283		349,965		904,966		224,497
Surrenders (note 6)		(507,955	)	(165,467	)	(69,321	)	-		(10,812	)	-		(41,147	)	(426	)
Death benefits (note 4)		(114,902	)	(808	)	(143,179	)	-		(145,369	)	-		(162	)	-
Net policy repayments (loans) (note 5)		(217,115	)	(112,544	)	20		(1,201	)	(5,729	)	(6,616	)	(17,613	)	(8,603	)
Deductions for surrender charges (note 2d)		(16,741	)	(7,584	)	(810	)	(280	)	(2,669	)	(568	)	(4,763	)	(361	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(404,623	)	(291,800	)	(38,423	)	(20,727	)	(91,873	)	(42,888	)	(108,147	)	(42,662	)
Asset charges (note 3):
FPVUL & VEL contracts		(32,035	)	(20,518	)	(3,412	)	(1,085	)	(5,159	)	(2,148	)	(5,809	)	(1,547	)
MSP contracts		(1,698	)	(312	)	(582	)	(107	)	(2,732	)	(1,174	)	(1,555	)	(821	)
SL contracts		(5,935	)	(3,452	)	(66	)	(43	)	(2,253	)	(922	)	(607	)	(54	)
Adjustments to maintain reserves		169		67		8		6		33		38		60		22
Net equity transactions		2,866,535		3,921,330		806,518		468,251		1,503,671		660,284		1,105,534		382,332
Net change in contract owners’ equity		6,549,794		4,414,530		897,836		509,169		1,692,613		769,250		1,241,570		436,204
Contract owners’ equity beginning of period		7,705,619		3,291,089		673,875		164,706		1,355,204		585,954		701,684		265,480
Contract owners’ equity end of period	$	14,255,413		7,705,619		1,571,711		673,875		3,047,817		1,355,204		1,943,254		701,684
CHANGES IN UNITS:
Beginning units		488,940		243,526		56,804		15,242		109,012		52,700		54,734		23,432
Units purchased		193,864		287,424		85,446		44,856		133,511		60,994		92,704		35,898
Units redeemed		(61,736	)	(42,010	)	(20,306	)	(3,294	)	(19,983	)	(4,682	)	(11,134	)	(4,596	)
Ending units		621,068		488,940		121,944		56,804		222,540		109,012		136,304		54,734

(Continued)

30

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	FrVIPDevMrk3					FrVIPForSec				FrVIPForSec2				FrVIPForSec3
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	134,911		51,034		69,784		52,262		291,105		148,526		141,669		58,304
Realized gain (loss) on investments		437,427		211,072		334,410		260,078		1,756,067		1,391,025		272,831		130,520
Change in unrealized gain (loss) on investments		427,527		648,770		(64,148	)	419,827		(279,035	)	1,461,209		238,423		667,348
Reinvested capital gains		445,938		-		144,496		-		785,608		-		307,222		-
Net increase (decrease) in contract owners’ equity resulting from operations		1,445,803		910,876		484,542		732,167		2,553,745		3,000,760		960,145		856,172
Equity transactions:
Purchase payments received from contract owners (note 6)		436,065		452,732		(17	)	(315	)	1,138,365		1,607,395		1,044,736		1,016,358
Transfers between funds		1,457,224		2,114,894		(571,939	)	(573,189	)	2,848,026		2,089,207		17,194		1,824,194
Surrenders (note 6)		(364,302	)	(163,461	)	(205,918	)	(206,312	)	(2,722,193	)	(594,945	)	(190,511	)	(165,303	)
Death benefits (note 4)		-		-		(16,922	)	(16,748	)	(171	)	(10,158	)	-		(4,801	)
Net policy repayments (loans) (note 5)		(92,473	)	(82,360	)	(35,558	)	(73,172	)	(104,369	)	(13,754	)	(55,581	)	(180,431	)
Deductions for surrender charges (note 2d)		(16,266	)	(1,910	)	(13,907	)	(9,844	)	-		-		(12,135	)	(10,743	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(236,537	)	(164,247	)	(93,251	)	(121,456	)	(288,174	)	(318,638	)	(242,517	)	(183,405	)
Asset charges (note 3):
FPVUL & VEL contracts		(18,724	)	(11,541	)	(10,207	)	(11,567	)	-		-		(18,765	)	(12,978	)
MSP contracts		(1,062	)	(662	)	(574	)	(490	)	-		-		(481	)	(109	)
SL contracts		(4,564	)	(3,092	)	(2,232	)	(2,351	)	-		-		(5,881	)	(3,195	)
Adjustments to maintain reserves		49		152		59		15		538		3,496		28		43
Net equity transactions		1,159,410		2,140,505		(950,466	)	(1,015,429	)	872,022		2,762,603		536,087		2,279,630
Net change in contract owners’ equity		2,605,213		3,051,381		(465,924	)	(283,262	)	3,425,767		5,763,363		1,496,232		3,135,802
Contract owners’ equity beginning of period		5,090,999		2,039,618		3,701,649		3,984,911		19,073,172		13,309,809		5,822,385		2,686,583
Contract owners’ equity end of period	$	7,696,212		5,090,999		3,235,725		3,701,649		22,498,939		19,073,172		7,318,617		5,822,385
CHANGES IN UNITS:
Beginning units		310,222		159,292		174,552		228,680		972,254		821,632		424,646		237,992
Units purchased		97,891		179,373		2		2		621,052		232,395		95,614		230,149
Units redeemed		(43,713	)	(28,443	)	(42,778	)	(54,130	)	(601,920	)	(81,773	)	(57,904	)	(43,495	)
Ending units		364,400		310,222		131,776		174,552		991,386		972,254		462,356		424,646

(Continued)

31

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	FrVIPGlInc3					FrVIPIncSec2				FrVIPRisDiv				FrVIPSCapV1
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	59,433		29,118		127,625		329		401,727		169,336		106,122		70,843
Realized gain (loss) on investments		40,603		17,697		43,240		5,066		595,926		315,782		320,677		431,242
Change in unrealized gain (loss) on investments		120,126		73,043		(153,756	)	44,817		(1,588,215	)	1,648,834		(1,564,171	)	535,635
Reinvested capital gains		-		-		23,668		44		227,655		68,181		811,996		298,012
Net increase (decrease) in contract owners’ equity resulting from operations		220,162		119,858		40,777		50,256		(362,907	)	2,202,133		(325,376	)	1,335,732
Equity transactions:
Purchase payments received from contract owners (note 6)		218,342		149,898		481,609		28,203		1,682,953		2,325,102		1,344,014		1,306,229
Transfers between funds		1,751,529		1,036,967		3,212,051		1,254,211		(654,804	)	625,796		1,120,441		1,453,376
Surrenders (note 6)		(16,918	)	(222,510	)	(29,418	)	(1	)	(532,665	)	(423,784	)	(476,936	)	(469,855	)
Death benefits (note 4)		-		-		-		-		(31,330	)	(21,819	)	(1,669	)	(23,451	)
Net policy repayments (loans) (note 5)		(141,288	)	(9,774	)	(27,299	)	(6	)	(179,926	)	(81,403	)	(40,823	)	(35,601	)
Deductions for surrender charges (note 2d)		(629	)	(5,959	)	(1,090	)	(109	)	(67,503	)	(38,911	)	(39,850	)	(27,685	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(91,814	)	(46,237	)	(138,913	)	(12,723	)	(698,883	)	(734,377	)	(483,810	)	(445,862	)
Asset charges (note 3):
FPVUL & VEL contracts		(7,058	)	(2,905	)	(8,409	)	(517	)	(57,222	)	(50,546	)	(38,132	)	(30,065	)
MSP contracts		(309	)	(61	)	(1,191	)	(45	)	(1,612	)	(1,633	)	(1,196	)	(936	)
SL contracts		(1,098	)	(364	)	(3,854	)	(419	)	(7,727	)	(6,758	)	(8,544	)	(3,931	)
Adjustments to maintain reserves		55		41		266		75		(16	)	51		(16	)	52
Net equity transactions		1,710,812		899,096		3,483,751		1,268,669		(548,735	)	1,591,718		1,373,478		1,722,271
Net change in contract owners’ equity		1,930,974		1,018,954		3,524,528		1,318,925		(911,642	)	3,793,851		1,048,102		3,058,003
Contract owners’ equity beginning of period		1,545,858		526,904		1,318,925		-		15,724,536		11,930,685		10,257,542		7,199,539
Contract owners’ equity end of period	$	3,476,832		1,545,858		4,843,453		1,318,925		14,812,894		15,724,536		11,305,644		10,257,542
CHANGES IN UNITS:
Beginning units		138,640		53,324		117,590		-		943,340		840,480		484,062		398,540
Units purchased		165,117		109,281		318,316		118,860		101,264		201,976		108,171		132,665
Units redeemed		(22,921	)	(23,965	)	(19,718	)	(1,270	)	(133,974	)	(99,116	)	(47,069	)	(47,143	)
Ending units		280,836		138,640		416,188		117,590		910,630		943,340		545,164		484,062

(Continued)

32

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	FrVIPSCapV2					GSVTMdCpV				JAspBal				JAspForty
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	15,663		13,727		417,161		447,368		172,447		140,956		48,697		19,557
Realized gain (loss) on investments		115,629		240,327		1,808,000		1,527,282		385,511		718,982		3,858,538		4,052,326
Change in unrealized gain (loss) on investments		(654,836	)	154,996		(11,651,421	)	565,343		149,402		(247,691	)	12,121,690		(196,228	)
Reinvested capital gains		288,566		131,249		11,581,061		6,847,239		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations		(234,978	)	540,299		2,154,801		9,387,232		707,360		612,247		16,028,925		3,875,655
Equity transactions:
Purchase payments received from contract owners (note 6)		590,192		235,901		6,980,186		9,151,404		663,113		814,693		3,904,384		4,436,262
Transfers between funds		1,205,853		482,348		2,766,842		1,717,030		2,280,431		(2,998,740	)	7,945,412		1,640,984
Surrenders (note 6)		(682	)	(20,907	)	(2,517,435	)	(4,345,371	)	(669,412	)	(139,904	)	(3,604,125	)	(5,569,498	)
Death benefits (note 4)		(7,582	)	-		(94,325	)	(44,468	)	(19,138	)	(9,517	)	(68,772	)	(155,868	)
Net policy repayments (loans) (note 5)		-		-		(140,364	)	(253	)	(7,435	)	(60,524	)	(289,899	)	(327,900	)
Deductions for surrender charges (note 2d)		-		-		-		-		(4,994	)	(3,986	)	(102,529	)	(150,791	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(58,388	)	(43,957	)	(900,790	)	(860,787	)	(156,437	)	(157,298	)	(1,670,311	)	(1,723,893	)
Asset charges (note 3):
FPVUL & VEL contracts		-		-		-		-		(5,278	)	(4,752	)	(113,167	)	(99,861	)
MSP contracts		-		-		-		-		-		-		(2,586	)	(2,411	)
SL contracts		-		-		-		-		(1,189	)	(915	)	(15,304	)	(13,846	)
Adjustments to maintain reserves		16		(11	)	577		1,371		1,218		12,505		207		165
Net equity transactions		1,729,409		653,374		6,094,691		5,618,926		2,080,879		(2,548,438	)	5,983,309		(1,966,657	)
Net change in contract owners’ equity		1,494,431		1,193,673		8,249,492		15,006,158		2,788,239		(1,936,191	)	22,012,234		1,908,998
Contract owners’ equity beginning of period		3,584,533		2,390,860		69,747,662		54,741,504		6,374,789		8,310,980		44,814,577		42,905,579
Contract owners’ equity end of period	$	5,078,964		3,584,533		77,997,154		69,747,662		9,163,028		6,374,789		66,826,811		44,814,577
CHANGES IN UNITS:
Beginning units		270,758		210,812		3,369,886		3,064,044		437,726		628,864		4,785,398		4,991,020
Units purchased		144,327		108,814		976,050		659,984		266,386		115,952		1,272,407		1,115,457
Units redeemed		(21,137	)	(48,868	)	(688,570	)	(354,142	)	(132,754	)	(307,090	)	(830,597	)	(1,321,079	)
Ending units		393,948		270,758		3,657,366		3,369,886		571,358		437,726		5,227,208		4,785,398

(Continued)

33

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	JAspGlTechS					JAspRMgCore				JAspIntGroS2				JAspIntGroS
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	47,169		(4,761	)	2,302		677		86,238		75,317		221,436		987,830
Realized gain (loss) on investments		2,241,803		727,508		(6,446	)	(6,169	)	371,799		168		8,720,014		8,545,861
Change in unrealized gain (loss) on investments		748,048		489,592		33,823		21,541		3,732,278		1,243,011		6,681,827		10,808,316
Reinvested capital gains		-		-		3,990		42,380		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations		3,037,020		1,212,339		33,669		58,429		4,190,315		1,318,496		15,623,277		20,342,007
Equity transactions:
Purchase payments received from contract owners (note 6)		1,444,016		1,726,100		43,891		45,743		3,350,991		1,819,270		1,817,999		3,361,029
Transfers between funds		(2,466,495	)	1,204,456		(84,139	)	(41,864	)	9,877,759		5,793,495		(305,785	)	444,747
Surrenders (note 6)		(1,199,719	)	(746,802	)	(1,583	)	(4,910	)	(557,665	)	(77,073	)	(2,821,312	)	(3,818,358	)
Death benefits (note 4)		(11,091	)	(15,700	)	-		-		(82,333	)	(464	)	(117,426	)	(264,675	)
Net policy repayments (loans) (note 5)		(117,589	)	(148,833	)	(3,835	)	(5,751	)	(103,681	)	71,621		(830,463	)	(454,585	)
Deductions for surrender charges (note 2d)		(47,628	)	(68,718	)	(214	)	(640	)	(19,680	)	(3,100	)	(102,258	)	(131,288	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(638,647	)	(692,384	)	(13,564	)	(22,573	)	(745,604	)	(134,013	)	(1,717,077	)	(1,849,857	)
Asset charges (note 3):
FPVUL & VEL contracts		(45,238	)	(43,998	)	(1,453	)	(1,774	)	(54,491	)	(8,505	)	(124,611	)	(119,340	)
MSP contracts		(859	)	(834	)	(387	)	(362	)	(1,035	)	(78	)	(3,786	)	(2,820	)
SL contracts		(8,218	)	(8,830	)	(153	)	(127	)	(11,759	)	(1,428	)	(18,807	)	(17,542	)
Adjustments to maintain reserves		82		234		54		(37	)	519		41		201		735
Net equity transactions		(3,091,386	)	1,204,691		(61,383	)	(32,295	)	11,653,021		7,459,766		(4,223,325	)	(2,851,954	)
Net change in contract owners’ equity		(54,366	)	2,417,030		(27,714	)	26,134		15,843,336		8,778,262		11,399,952		17,490,053
Contract owners’ equity beginning of period		16,542,503		14,125,473		536,227		510,093		8,778,262		-		60,847,232		43,357,179
Contract owners’ equity end of period	$	16,488,137		16,542,503		508,513		536,227		24,621,598		8,778,262		72,247,184		60,847,232
CHANGES IN UNITS:
Beginning units		3,845,242		3,531,632		30,204		31,826		754,850		-		4,214,566		4,397,578
Units purchased		435,598		972,673		2,653		2,850		1,014,616		777,292		404,502		487,995
Units redeemed		(1,135,288	)	(659,063	)	(5,869	)	(4,472	)	(116,318	)	(22,442	)	(703,334	)	(671,007	)
Ending units		3,145,552		3,845,242		26,988		30,204		1,653,148		754,850		3,915,734		4,214,566

(Continued)

34

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	JPMMidCapGr					JPMMidCapV				LBTShrtDBd				LincGroOp
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(13,419	)	(10,359	)	4,475		6,164		235,067		272,797		(37,013	)	(37,388	)
Realized gain (loss) on investments		124,431		231,144		(32,851	)	4,335		16,528		(17,147	)	460,109		710,863
Change in unrealized gain (loss) on investments		(248,142	)	(10,397	)	(84,540	)	(30,208	)	149,231		113,979		(1,486,508	)	1,013,385
Reinvested capital gains		863,461		109,584		116,564		98,910		-		-		1,458,483		-
Net increase (decrease) in contract owners’ equity resulting from operations		726,331		319,972		3,648		79,201		400,826		369,629		395,071		1,686,860
Equity transactions:
Purchase payments received from contract owners (note 6)		562,550		503,494		6		30,062		555,419		785,674		1,060,728		2,174,399
Transfers between funds		1,743,291		(90,427	)	(28,514	)	(587,553	)	(1,436,045	)	1,348,992		2,145,519		(3,550,948	)
Surrenders (note 6)		(162,901	)	(84,882	)	(68,885	)	(82,845	)	(308,534	)	(138,889	)	(405,413	)	(370,871	)
Death benefits (note 4)		(2,971	)	(151	)	(596	)	(805	)	(21,919	)	-		(11,654	)	(1,669	)
Net policy repayments (loans) (note 5)		-		-		-		-		(20,588	)	(5,571	)	(60,228	)	(7,288	)
Deductions for surrender charges (note 2d)		-		-		-		-		(24,858	)	(14,623	)	-		-
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(81,081	)	(76,330	)	(2,161	)	(8,083	)	(287,735	)	(334,442	)	(205,960	)	(204,306	)
Asset charges (note 3):
FPVUL & VEL contracts		-		-		-		-		(24,496	)	(24,807	)	-		-
MSP contracts		-		-		-		-		(1,221	)	(753	)	-		-
SL contracts		-		-		-		-		(2,835	)	(2,448	)	-		-
Adjustments to maintain reserves		47		8		(75	)	8		13		(10	)	(8	)	(588	)
Net equity transactions		2,058,935		251,712		(100,225	)	(649,216	)	(1,572,798	)	1,613,123		2,522,984		(1,961,271	)
Net change in contract owners’ equity		2,785,266		571,684		(96,577	)	(570,015	)	(1,171,972	)	1,982,752		2,918,055		(274,411	)
Contract owners’ equity beginning of period		3,975,089		3,403,405		307,893		877,908		9,716,531		7,733,779		12,931,695		13,206,106
Contract owners’ equity end of period	$	6,760,355		3,975,089		211,316		307,893		8,544,559		9,716,531		15,849,750		12,931,695
CHANGES IN UNITS:
Beginning units		225,124		214,242		15,930		53,000		903,048		748,972		690,768		812,598
Units purchased		124,457		63,298		-		1,741		64,515		204,964		243,845		133,650
Units redeemed		(22,251	)	(52,416	)	(5,098	)	(38,811	)	(209,601	)	(50,888	)	(114,719	)	(255,480	)
Ending units		327,330		225,124		10,832		15,930		757,962		903,048		819,894		690,768

(Continued)

35

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	LrdMidCapV					MFSInvGrSt				MFSRsrchIntl			MFSValue
Investment activity:	2007			2006		2007		2006		2007		2006	2007		2006
Net investment income (loss)	$	4,797		2,252		15,269		-		(8	)	-	49,384		24,098
Realized gain (loss) on investments		49,953		3,568		243,719		59,908		98		-	219,343		104,789
Change in unrealized gain (loss) on investments		(364,934	)	1,310		229,819		247,242		264		-	14,453		286,163
Reinvested capital gains		253,561		49,476		-		-		-		-	84,573		68,117
Net increase (decrease) in contract owners’ equity resulting from operations		(56,623	)	56,606		488,807		307,150		354		-	367,753		483,167
Equity transactions:
Purchase payments received from contract owners (note 6)		51,577		2,994		524,096		865,208		2		-	600,850		410,693
Transfers between funds		1,562,245		387,073		(230,707	)	(58,134	)	9,266		-	2,607,442		1,224,719
Surrenders (note 6)		(314,757	)	(7,874	)	(307,318	)	(118,612	)	-		-	(72,432	)	(62,697	)
Death benefits (note 4)		(620	)	-		(42,448	)	(17,006	)	-		-	-		-
Net policy repayments (loans) (note 5)				-		(24,261	)	(39,305	)	-		-	(9,423	)	(12,805	)
Deductions for surrender charges (note 2d)		-		-		(31,561	)	(14,157	)	-		-	(5,972	)	(11,532	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(20,662	)	(4,758	)	(250,135	)	(280,830	)	(130	)	-	(240,520	)	(139,305	)
Asset charges (note 3):
FPVUL & VEL contracts		-		-		(19,201	)	(17,699	)	-		-	(18,671	)	(9,363	)
MSP contracts		-		-		(230	)	(237	)	-		-	(471	)	(380	)
SL contracts		-		-		(842	)	(824	)	-		-	(3,274	)	(1,208	)
Adjustments to maintain reserves		(27	)	(838	)	(18	)	5		7		-	37		50
Net equity transactions		1,277,756		376,597		(382,625	)	318,409		9,145		-	2,857,567		1,398,172
Net change in contract owners’ equity		1,221,133		433,203		106,182		625,559		9,499		-	3,225,320		1,881,339
Contract owners’ equity beginning of period		667,744		234,541		4,481,158		3,855,599		-		-	3,676,817		1,795,478
Contract owners’ equity end of period	$	1,888,877		667,744		4,587,340		4,481,158		9,499		-	6,902,137		3,676,817
CHANGES IN UNITS:
Beginning units		52,940		20,812		314,824		291,396		-		-	200,260		118,172
Units purchased		125,650		33,292		36,248		62,263		912		-	168,836		96,110
Units redeemed		(29,502	)	(1,164	)	(61,660	)	(38,835	)	(12	)	-	(20,716	)	(14,022	)
Ending units		149,088		52,940		289,412		314,824		900		-	348,380		200,260

(Continued)

36

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	NWStratV				NVITAstAll2				NVITBnd2				NVITGlobGr2
Investment activity:	2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	-	-		68,968		28,982		142,989		2,413		111,882		1,684
Realized gain (loss) on investments		-	-		140,127		(347	)	2,005		-		88,366		(210	)
Change in unrealized gain (loss) on investments		-	-		(63,468	)	50,812		(97,260	)	8,969		251,313		100,276
Reinvested capital gains		-	-		1,640		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations		-	-		147,267		79,447		47,734		11,382		451,561		101,750
Equity transactions:
Purchase payments received from contract owners (note 6)		-	3		260,108		129,152		125,279		24,483		442,191		78,774
Transfers between funds		-	(30	)	1,898,840		1,596,575		1,769,831		715,789		3,470,401		1,478,713
Surrenders (note 6)		-	-		(17,869	)	(17,173	)	(170,306	)	-		(177,182	)	(70	)
Death benefits (note 4)		-	-		(23,466	)	-		(18,196	)	-		(19,979	)	-
Net policy repayments (loans) (note 5)		-	-		(35,332	)	(568	)	14,767		82		(23,139	)	(122	)
Deductions for surrender charges (note 2d)		-	-		(1,187	)	(308	)	(19,403	)	(212	)	(20,052	)	(112	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		-	3		(155,589	)	(31,978	)	(66,515	)	(6,887	)	(148,100	)	(21,893	)
Asset charges (note 3):		-
FPVUL & VEL contracts		-	(1	)	(10,425	)	(2,072	)	(4,823	)	(429	)	(11,465	)	(1,462	)
MSP contracts		-	-		(1,849	)	(187	)	(519	)	(30	)	(852	)	(128	)
SL contracts		-	-		(1,867	)	(247	)	(655	)	(49	)	(2,637	)	(252	)
Adjustments to maintain reserves		-	25		56		74		54		41		142		72
Net equity transactions		-	-		1,911,419		1,673,268		1,629,513		732,788		3,509,328		1,533,520
Net change in contract owners’ equity		-	-		2,058,686		1,752,715		1,677,247		744,170		3,960,889		1,635,270
Contract owners’ equity beginning of period		-	-		1,752,715		-		744,170		-		1,635,270		-
Contract owners’ equity end of period	$	-	-		3,811,401		1,752,715		2,421,417		744,170		5,596,159		1,635,270
CHANGES IN UNITS:
Beginning units		-	-		166,024		-		70,612		-		150,826		-
Units purchased		-	3		199,129		172,330		177,509		71,349		337,040		153,273
Units redeemed		-	(3	)	(25,011	)	(6,306	)	(25,013	)	(737	)	(36,544	)	(2,447	)
Ending units		-	-		340,142		166,024		223,108		70,612		451,322		150,826

(Continued)

37

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	NVITGroInc2				NVITGrowth2				NVITFHiInc				NVITFHiInc3
Investment activity:	2007			2006	2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	11,382		-	34,454		10,186		1,847,429		1,761,889		959,716		475,086
Realized gain (loss) on investments		(293	)	-	63,442		(2,201	)	(275,677	)	(62,770	)	(20,268	)	(15,183	)
Change in unrealized gain (loss) on investments		(34,922	)	-	288,185		69,921		(819,124	)	711,651		(686,065	)	168,615
Reinvested capital gains		-		-	1,318		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations		(23,833	)	-	387,399		77,906		752,628		2,410,770		253,383		628,518
Equity transactions:
Purchase payments received from contract owners (note 6)		11,442		-	407,940		76,929		1,570,797		2,723,130		3,084,891		2,365,950
Transfers between funds		964,877		-	4,978,069		1,631,125		(1,813,513	)	(1,664,758	)	4,741,260		1,328,322
Surrenders (note 6)		-		-	(201,950	)	(414	)	(1,508,223	)	(244,854	)	(198,254	)	(347,150	)
Death benefits (note 4)		-		-	-		-		(97,975	)	(19,579	)	(2,985	)	(120,074	)
Net policy repayments (loans) (note 5)		(1,959	)	-	(23,829	)	(9,701	)	(400,247	)	(435,512	)	235,147		118,992
Deductions for surrender charges (note 2d)		-		-	(15,982	)	(109	)	(18,575	)	(19,998	)	(19,203	)	(15,799	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(11,966	)	-	(173,789	)	(26,707	)	(468,260	)	(579,721	)	(395,169	)	(280,933	)
Asset charges (note 3):
FPVUL & VEL contracts		(847	)	-	(14,337	)	(1,844	)	(23,264	)	(28,257	)	(23,359	)	(15,308	)
MSP contracts		(199	)	-	(497	)	(75	)	(1,340	)	(1,365	)	(455	)	(190	)
SL contracts		(126	)	-	(4,026	)	(502	)	(19,928	)	(22,279	)	(18,059	)	(8,008	)
Adjustments to maintain reserves		87		-	89		67		5		65		24		(6	)
Net equity transactions		961,308		-	4,951,688		1,668,769		(2,780,523	)	(293,128	)	7,403,838		3,025,796
Net change in contract owners’ equity		937,475		-	5,339,087		1,746,675		(2,027,895	)	2,117,642		7,657,221		3,654,314
Contract owners’ equity beginning of period		-		-	1,746,675		-		25,317,159		23,199,517		8,180,355		4,526,041
Contract owners’ equity end of period	$	937,475		-	7,085,762		1,746,675		23,289,264		25,317,159		15,837,576		8,180,355
CHANGES IN UNITS:
Beginning units		-		-	168,526		-		1,555,242		1,577,566		701,700		429,384
Units purchased		96,264		-	481,897		172,788		228,236		258,754		692,490		366,115
Units redeemed		(1,496	)	-	(39,457	)	(4,262	)	(392,008	)	(281,078	)	(77,376	)	(93,799	)
Ending units		94,768		-	610,966		168,526		1,391,470		1,555,242		1,316,814		701,700

(Continued)

38

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	NVITEmMrkts					NVITEmMrkts3				NVITGlUtl				NVITIntGro
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	191,515		124,907		127,640		71,767		124,359		80,246		35,653		51,667
Realized gain (loss) on investments		3,567,602		2,198,970		1,070,771		430,240		265,669		12		1,390,839		398,037
Change in unrealized gain (loss) on investments		6,433,912		4,849,580		3,392,089		2,317,091		(654,732	)	680,567		(15,627	)	1,594,606
Reinvested capital gains		3,989,041		275,455		1,739,899		116,408		1,129,147		232,606		800,247		11,773
Net increase (decrease) in contract owners’ equity resulting from operations		14,182,070		7,448,912		6,330,399		2,935,506		864,443		993,431		2,211,112		2,056,083
Equity transactions:
Purchase payments received from contract owners (note 6)		2,731,542		2,047,791		1,646,140		1,520,378		361,010		296,736		355,820		395,774
Transfers between funds		7,859,137		4,726,439		5,271,428		3,261,982		1,088,154		1,100,262		4,001,925		4,150,649
Surrenders (note 6)		(1,492,202	)	(900,293	)	(455,074	)	(263,722	)	(279,979	)	(163,364	)	(3,252,295	)	(276,718	)
Death benefits (note 4)		(14,459	)	(146,656	)	(1,443	)	(26,594	)	(1,120	)	(141	)	(9,980	)	(847	)
Net policy repayments (loans) (note 5)		(154,392	)	6,408		(225,024	)	(124,005	)	(68,907	)	(32,111	)	(85,756	)	(34,525	)
Deductions for surrender charges (note 2d)		(15,806	)	(28,669	)	(23,711	)	(15,025	)	(4,429	)	(11,689	)	(50,862	)	(3,557	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(594,619	)	(508,763	)	(612,973	)	(409,734	)	(141,759	)	(99,654	)	(223,485	)	(177,826	)
Asset charges (note 3):
FPVUL & VEL contracts		(23,926	)	(23,414	)	(48,062	)	(28,192	)	(11,401	)	(7,464	)	(19,502	)	(12,673	)
MSP contracts		(1,170	)	(835	)	(1,368	)	(598	)	(600	)	(487	)	(508	)	(372	)
SL contracts		(2,738	)	(2,994	)	(8,946	)	(4,669	)	(1,639	)	(995	)	(5,117	)	(1,302	)
Adjustments to maintain reserves		926		1,285		125		110		37		33		71		77
Net equity transactions		8,292,292		5,170,299		5,541,092		3,909,931		939,367		1,081,126		710,310		4,038,680
Net change in contract owners’ equity		22,474,362		12,619,211		11,871,491		6,845,437		1,803,810		2,074,557		2,921,422		6,094,763
Contract owners’ equity beginning of period		29,887,273		17,268,062		13,014,024		6,168,587		4,354,145		2,279,588		9,658,656		3,563,893
Contract owners’ equity end of period	$	52,361,635		29,887,273		24,885,515		13,014,024		6,157,955		4,354,145		12,580,078		9,658,656
CHANGES IN UNITS:
Beginning units		1,195,438		939,440		714,108		462,520		212,848		153,292		720,712		354,044
Units purchased		515,106		391,752		282,228		308,894		83,272		85,389		287,828		408,362
Units redeemed		(269,048	)	(135,754	)	(58,140	)	(57,306	)	(45,930	)	(25,833	)	(269,890	)	(41,694	)
Ending units		1,441,496		1,195,438		938,196		714,108		250,190		212,848		738,650		720,712

(Continued)

39

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	NVITWLead					NVITGlFin				NVITGlHlth				NVITGlHlth3
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	25,298		44,960		161,510		78,715		(1,920	)	(3,910	)	2,051		-
Realized gain (loss) on investments		429,789		397,546		49,785		87,121		31,789		40,812		86,218		(93,374	)
Change in unrealized gain (loss) on investments		692,082		800,472		(968,313	)	41,527		339,170		68,815		196,615		104,691
Reinvested capital gains		-		-		695,341		557,756		71,596		-		55,688		-
Net increase (decrease) in contract owners’ equity resulting from operations		1,147,169		1,242,978		(61,677	)	765,119		440,635		105,717		340,572		11,317
Equity transactions:
Purchase payments received from contract owners (note 6)		398,968		415,550		205,922		252,871		189,628		244,547		431,108		514,644
Transfers between funds		1,254,688		(215,873	)	96,155		1,118,235		732,613		(629,374	)	(240,373	)	615,233
Surrenders (note 6)		(455,894	)	(292,759	)	(311,443	)	(355,946	)	(97,194	)	(235,027	)	(158,260	)	(73,648	)
Death benefits (note 4)		(8,994	)	(5,633	)	(9,970	)	(4,905	)	(1,058	)	(49,442	)	-		(18,809	)
Net policy repayments (loans) (note 5)		(59,790	)	(34,245	)	1,478		(45,529	)	(14,439	)	(27,307	)	48,471		31,729
Deductions for surrender charges (note 2d)		(12,965	)	(8,990	)	(6,675	)	(9,913	)	(6,511	)	(11,144	)	(11,534	)	(9,427	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(263,167	)	(258,860	)	(147,497	)	(151,301	)	(81,639	)	(105,361	)	(112,012	)	(94,826	)
Asset charges (note 3):
FPVUL & VEL contracts		(20,402	)	(17,581	)	(6,986	)	(6,565	)	(5,409	)	(6,834	)	(9,993	)	(6,493	)
MSP contracts		(515	)	(379	)	(1	)	(16	)	(211	)	(214	)	(21	)	(12	)
SL contracts		(2,448	)	(1,912	)	(1,553	)	(1,782	)	(1,209	)	(1,413	)	(1,446	)	(1,618	)
Adjustments to maintain reserves		8		26		(65	)	118		47		(38	)	3		22
Net equity transactions		829,489		(420,656	)	(180,634	)	795,267		714,617		(821,607	)	(54,057	)	956,795
Net change in contract owners’ equity		1,976,658		822,322		(242,311	)	1,560,386		1,155,252		(715,890	)	286,515		968,112
Contract owners’ equity beginning of period		5,742,442		4,920,120		4,887,671		3,327,285		3,530,899		4,246,789		2,346,125		1,378,013
Contract owners’ equity end of period	$	7,719,100		5,742,442		4,645,360		4,887,671		4,686,151		3,530,899		2,632,640		2,346,125
CHANGES IN UNITS:
Beginning units		327,572		354,722		247,374		202,412		259,242		319,476		212,658		128,282
Units purchased		84,749		25,803		41,154		81,896		91,165		25,905		42,190		108,396
Units redeemed		(37,937	)	(52,953	)	(50,640	)	(36,934	)	(45,843	)	(86,139	)	(44,096	)	(24,020	)
Ending units		374,384		327,572		237,888		247,374		304,564		259,242		210,752		212,658

(Continued)

40

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	NVITGlTech					NVITGlTech3				NVITGvtBd				NVITGrowth
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(8,401	)	(7,319	)	-		-		4,274,399		4,274,357		29,429		6,492
Realized gain (loss) on investments		450,153		68,309		106,294		76,865		(1,401,642	)	(4,154,742	)	530,463		106,037
Change in unrealized gain (loss) on investments		432,229		460,052		306,317		104,554		3,759,402		2,016,604		2,553,716		848,404
Reinvested capital gains		-		-		-		-		-		841,510		-		-
Net increase (decrease) in contract owners’ equity resulting from operations		873,981		521,042		412,611		181,419		6,632,159		2,977,729		3,113,608		960,933
Equity transactions:
Purchase payments received from contract owners (note 6)		213,992		287,298		505,615		440,135		8,287,508		12,600,167		1,964,117		2,372,877
Transfers between funds		407,614		94,884		1,536,945		356,995		900,184		(12,812,837	)	543,825		(862,076	)
Surrenders (note 6)		(71,579	)	(180,565	)	(56,211	)	(60,392	)	(9,036,984	)	(35,315,367	)	(1,211,517	)	(642,622	)
Death benefits (note 4)		(16,271	)	(4,826	)	(6,894	)	(584	)	(88,161	)	(473,758	)	(53,928	)	(126,564	)
Net policy repayments (loans) (note 5)		(32,280	)	(60,942	)	(21,315	)	(50,683	)	(263,254	)	1,302,396		(244,672	)	(183,520	)
Deductions for surrender charges (note 2d)		(7,102	)	(9,272	)	(4,930	)	(10,362	)	(193,504	)	(204,806	)	(51,255	)	(74,252	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(130,148	)	(157,767	)	(113,213	)	(87,361	)	(2,712,671	)	(3,202,073	)	(1,160,744	)	(1,233,859	)
Asset charges (note 3):
FPVUL & VEL contracts		(6,818	)	(7,600	)	(8,187	)	(5,542	)	(119,155	)	(118,452	)	(75,831	)	(70,082	)
MSP contracts		(307	)	(332	)	(137	)	(70	)	(11,699	)	(14,367	)	(2,163	)	(2,065	)
SL contracts		(725	)	(789	)	(1,660	)	(577	)	(35,026	)	(61,790	)	(8,014	)	(7,477	)
Adjustments to maintain reserves		(64	)	(448	)	70		35		154		506		193		804
Net equity transactions		356,311		(40,359	)	1,830,083		581,594		(3,272,608	)	(38,300,381	)	(299,990	)	(828,836	)
Net change in contract owners’ equity		1,230,292		480,683		2,242,694		763,013		3,359,551		(35,322,652	)	2,813,618		132,097
Contract owners’ equity beginning of period		5,638,860		5,158,177		1,861,016		1,098,003		98,341,704		133,664,356		16,770,262		16,638,165
Contract owners’ equity end of period	$	6,869,152		5,638,860		4,103,710		1,861,016		101,701,255		98,341,704		19,583,880		16,770,262
CHANGES IN UNITS:
Beginning units		1,613,876		1,635,356		136,014		89,142		6,787,556		9,534,524		2,041,710		2,151,666
Units purchased		482,115		281,687		132,102		69,527		939,393		969,433		409,216		314,518
Units redeemed		(457,537	)	(303,167	)	(18,566	)	(22,655	)	(1,156,561	)	(3,716,401	)	(414,202	)	(424,474	)
Ending units		1,638,454		1,613,876		249,550		136,014		6,570,388		6,787,556		2,036,724		2,041,710

(Continued)

41

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	NVITIntIdx2				NVITIntIdx6				NVITIntValI				NVITIntVal3
Investment activity:	2007			2006	2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	20,166		-	8,079		2,038		53,925		65,708		209,918		123,878
Realized gain (loss) on investments		(887	)	-	14,607		(153	)	180,626		121,786		320,183		222,573
Change in unrealized gain (loss) on investments		(12,435	)	-	4,283		16,309		(315,435	)	262,686		(931,852	)	496,243
Reinvested capital gains		4,192		-	1,322		-		181,307		202,934		679,607		403,845
Net increase (decrease) in contract owners’ equity resulting from operations		11,036		-	28,291		18,194		100,423		653,114		277,856		1,246,539
Equity transactions:
Purchase payments received from contract owners (note 6)		51,510		-	83,018		25,584		-		3,238		1,270,903		1,490,965
Transfers between funds		2,181,326		-	358,286		183,642		(793,279	)	(551,440	)	977,584		1,415,870
Surrenders (note 6)		-		-	(14,557	)	(17	)	(61,854	)	(116,109	)	(407,921	)	(199,484	)
Death benefits (note 4)		-		-	-		-		-		-		(29,396	)	(19,679	)
Net policy repayments (loans) (note 5)		-		-	(5,875	)	(300	)	(19,962	)	(27,720	)	(104,054	)	(88,948	)
Deductions for surrender charges (note 2d)		-		-	-		(158	)	(6,409	)	(5,448	)	(37,936	)	(10,673	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(21,286	)	-	(28,927	)	(3,539	)	(92,945	)	(132,330	)	(379,667	)	(320,567	)
Asset charges (note 3):
FPVUL & VEL contracts		-		-	(1,249	)	(246	)	(8,659	)	(10,702	)	(32,244	)	(22,271	)
MSP contracts		-		-	(273	)	-		(425	)	(455	)	(432	)	(303	)
SL contracts		-		-	(551	)	(61	)	(1,457	)	(1,562	)	(4,686	)	(2,726	)
Adjustments to maintain reserves		5		-	25		72		(53	)	(192	)	24		48
Net equity transactions		2,211,555		-	389,897		204,977		(985,043	)	(842,720	)	1,252,175		2,242,232
Net change in contract owners’ equity		2,222,591		-	418,188		223,171		(884,620	)	(189,606	)	1,530,031		3,488,771
Contract owners’ equity beginning of period		-		-	223,171		-		3,110,249		3,299,855		8,096,448		4,607,677
Contract owners’ equity end of period	$	2,222,591		-	641,359		223,171		2,225,629		3,110,249		9,626,479		8,096,448
CHANGES IN UNITS:
Beginning units		-		-	20,334		-		134,862		175,520		575,980		402,348
Units purchased		221,814		-	36,532		21,043		-		76		169,451		224,783
Units redeemed		(2,080	)	-	(3,498	)	(709	)	(41,092	)	(40,734	)	(80,111	)	(51,151	)
Ending units		219,734		-	53,368		20,334		93,770		134,862		665,320		575,980

(Continued)

42

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	NVITIDAgg2					NVITIDCon2				NVITIDMod2				NVITIDModAg2
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	583,599		421,795		473,445		379,907		1,770,158		1,327,498		1,778,175		1,316,373
Realized gain (loss) on investments		975,330		642,528		18,973		(14,713	)	1,399,355		962,021		1,445,009		1,886,692
Change in unrealized gain (loss) on investments		(1,210,646	)	1,918,101		(111,573	)	238,962		(729,998	)	3,146,924		(491,544	)	4,291,540
Reinvested capital gains		960,583		295,325		324,884		123,826		1,019,405		502,972		1,501,624		725,912
Net increase (decrease) in contract owners’ equity resulting from operations		1,308,866		3,277,749		705,729		727,982		3,458,920		5,939,415		4,233,264		8,220,517
Equity transactions:
Purchase payments received from contract owners (note 6)		4,274,226		4,170,763		762,710		1,151,953		8,403,771		9,853,038		11,762,349		11,456,107
Transfers between funds		7,452,537		1,559,482		1,114,999		2,758,814		6,307,955		5,612,064		10,270,896		5,087,005
Surrenders (note 6)		(925,022	)	(759,549	)	(239,255	)	(435,324	)	(2,212,436	)	(1,896,681	)	(3,380,536	)	(4,308,782	)
Death benefits (note 4)		(56,081	)	(32,296	)	(84,565	)	(73,137	)	(669,579	)	(134,336	)	(73,357	)	(7,042	)
Net policy repayments (loans) (note 5)		(327,955	)	(141,702	)	(93,495	)	(24,239	)	(278,141	)	(223,847	)	(644,778	)	(775,310	)
Deductions for surrender charges (note 2d)		(103,250	)	(140,694	)	(22,485	)	(33,334	)	(207,181	)	(266,778	)	(311,493	)	(389,030	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(1,456,936	)	(1,304,561	)	(562,244	)	(580,940	)	(3,255,275	)	(3,236,018	)	(4,002,541	)	(3,731,750	)
Asset charges (note 3):
FPVUL & VEL contracts		(86,816	)	(64,191	)	(20,865	)	(22,125	)	(189,776	)	(169,493	)	(280,192	)	(220,543	)
MSP contracts		(5,860	)	(1,766	)	(7,024	)	(6,270	)	(27,626	)	(19,056	)	(19,829	)	(10,524	)
SL contracts		(5,416	)	(3,840	)	(4,601	)	(4,480	)	(24,957	)	(22,344	)	(30,748	)	(25,375	)
Adjustments to maintain reserves		422		(82	)	(4	)	(4	)	(45	)	(879	)	58		216
Net equity transactions		8,759,849		3,281,564		843,171		2,730,914		7,846,710		9,495,670		13,289,829		7,074,972
Net change in contract owners’ equity		10,068,715		6,559,313		1,548,900		3,458,896		11,305,630		15,435,085		17,523,093		15,295,489
Contract owners’ equity beginning of period		25,019,005		18,459,692		13,095,594		9,636,698		62,045,944		46,610,859		67,667,897		52,372,408
Contract owners’ equity end of period	$	35,087,720		25,019,005		14,644,494		13,095,594		73,351,574		62,045,944		85,190,990		67,667,897
CHANGES IN UNITS:
Beginning units		1,589,760		1,368,528		1,057,738		823,092		4,414,294		3,688,566		4,480,646		3,969,980
Units purchased		783,514		521,691		179,883		415,079		1,225,151		1,222,494		1,508,816		1,222,174
Units redeemed		(268,034	)	(300,459	)	(113,275	)	(180,433	)	(698,185	)	(496,766	)	(673,504	)	(711,508	)
Ending units		2,105,240		1,589,760		1,124,346		1,057,738		4,941,260		4,414,294		5,315,958		4,480,646

(Continued)

43

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	NVITIDModCon2					NVITJPBal				NVITMdCpGr				NVITMidCap
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	924,969		629,411		372,176		416,379		(4,547	)	(4,698	)	991,682		781,312
Realized gain (loss) on investments		335,326		467,967		772,749		1,350,548		1,051,935		503,082		7,103,961		8,050,335
Change in unrealized gain (loss) on investments		(460,314	)	474,133		(829,543	)	439,493		474,143		1,011,753		(4,305,215	)	(3,099,405	)
Reinvested capital gains		847,408		317,513		472,649		-		-		-		2,350,170		1,086,719
Net increase (decrease) in contract owners’ equity resulting from operations		1,647,389		1,889,024		788,031		2,206,420		1,521,531		1,510,137		6,140,598		6,818,961
Equity transactions:
Purchase payments received from contract owners (note 6)		6,780,776		5,966,130		1,134,991		1,369,428		1,924,858		1,834,830		6,557,070		8,244,490
Transfers between funds		2,924,146		(1,087,071	)	(327,203	)	(1,657,342	)	(1,256,086	)	(417,382	)	(6,293,593	)	2,100,457
Surrenders (note 6)		(609,466	)	(331,084	)	(595,074	)	(2,865,306	)	(916,472	)	(632,057	)	(7,584,629	)	(9,627,323	)
Death benefits (note 4)		(143,638	)	(475	)	(67,754	)	(62,754	)	(74,747	)	(20,321	)	(191,521	)	(172,854	)
Net policy repayments (loans) (note 5)		(21,165	)	(47,914	)	(140,471	)	(69,838	)	(137,133	)	(142,757	)	(1,428,199	)	(485,363	)
Deductions for surrender charges (note 2d)		(53,616	)	(36,396	)	(23,557	)	(119,984	)	(49,116	)	(56,726	)	(92,784	)	(148,453	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(973,179	)	(926,995	)	(678,947	)	(757,970	)	(838,691	)	(903,004	)	(2,047,553	)	(2,197,872	)
Asset charges (note 3):
FPVUL & VEL contracts		(43,994	)	(42,604	)	(40,923	)	(42,576	)	(54,459	)	(53,009	)	(117,548	)	(113,884	)
MSP contracts		(13,646	)	(8,059	)	(2,172	)	(2,310	)	(1,650	)	(1,510	)	(2,326	)	(1,996	)
SL contracts		(7,473	)	(6,535	)	(11,404	)	(11,159	)	(8,354	)	(7,634	)	(30,345	)	(37,493	)
Adjustments to maintain reserves		61		(347	)	60		317		(2	)	43		31		(231	)
Net equity transactions		7,838,806		3,478,650		(752,454	)	(4,219,494	)	(1,411,852	)	(399,527	)	(11,231,397	)	(2,440,522	)
Net change in contract owners’ equity		9,486,195		5,367,674		35,577		(2,013,074	)	109,679		1,110,610		(5,090,799	)	4,378,439
Contract owners’ equity beginning of period		26,078,483		20,710,809		17,405,363		19,418,437		17,421,845		16,311,235		81,238,105		76,859,666
Contract owners’ equity end of period	$	35,564,678		26,078,483		17,440,940		17,405,363		17,531,524		17,421,845		76,147,306		81,238,105
CHANGES IN UNITS:
Beginning units		1,976,998		1,697,008		1,315,664		1,645,674		1,217,840		1,253,052		3,900,284		3,939,766
Units purchased		769,370		509,644		162,528		120,149		123,380		140,282		708,130		779,224
Units redeemed		(191,608	)	(229,654	)	(215,184	)	(450,159	)	(226,146	)	(175,494	)	(1,210,632	)	(818,706	)
Ending units		2,554,760		1,976,998		1,263,008		1,315,664		1,115,074		1,217,840		3,397,782		3,900,284

(Continued)

44

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	NVITMyMkt					NVITMyMkt5				NVITSmCapGr				NVITSmCapVal
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	5,446,932		5,057,915		15,711,908		10,857,311		(21,368	)	(23,290	)	783,828		282,031
Realized gain (loss) on investments		-		-		-		-		1,331,533		2,136,273		3,271,928		12,069,014
Change in unrealized gain (loss) on investments		-		-		-		-		891,419		(1,500,638	)	(18,612,733	)	(5,079,969	)
Reinvested capital gains		-		-		-		-		-		-		9,528,527		6,169,351
Net increase (decrease) in contract owners’ equity resulting from operations		5,446,932		5,057,915		15,711,908		10,857,311		2,201,584		612,345		(5,028,450	)	13,440,427
Equity transactions:
Purchase payments received from contract owners (note 6)		42,302,829		36,245,767		68,812,070		174,454,959		2,183,394		3,156,568		5,598,766		7,852,968
Transfers between funds		(16,434,437	)	(20,282,149	)	(45,150,872	)	(26,589,546	)	(1,419,241	)	500,782		(8,336,203	)	(11,917,583	)
Surrenders (note 6)		(14,968,887	)	(14,591,642	)	(18,917,961	)	(19,445,282	)	(1,741,558	)	(6,177,383	)	(4,285,947	)	(11,019,125	)
Death benefits (note 4)		(393,264	)	(430,692	)	(450,281	)	(68,864	)	(44,026	)	(55,315	)	(195,551	)	(625,733	)
Net policy repayments (loans) (note 5)		(549,287	)	(682,250	)	(849,515	)	217,926		(239,725	)	(131,546	)	(779,559	)	(465,834	)
Deductions for surrender charges (note 2d)		(850,636	)	(850,181	)	-		-		(42,924	)	(46,363	)	(126,970	)	(175,861	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(7,268,391	)	(7,954,613	)	(4,767,447	)	(4,077,600	)	(761,772	)	(863,076	)	(2,391,630	)	(2,819,571	)
Asset charges (note 3):
FPVUL & VEL contracts		(380,951	)	(370,746	)	-		-		(49,431	)	(51,213	)	(159,916	)	(167,018	)
MSP contracts		(30,308	)	(31,321	)	-		-		(1,244	)	(1,246	)	(5,301	)	(5,158	)
SL contracts		(99,650	)	(84,568	)	-		-		(7,117	)	(11,542	)	(24,160	)	(28,628	)
Adjustments to maintain reserves		(519	)	(5,168	)	(415	)	10,439		(11	)	(6,453	)	211		95
Net equity transactions		1,326,499		(9,037,563	)	(1,324,421	)	124,502,032		(2,123,655	)	(3,686,787	)	(10,706,260	)	(19,371,448	)
Net change in contract owners’ equity		6,773,431		(3,979,648	)	14,387,487		135,359,343		77,929		(3,074,442	)	(15,734,710	)	(5,931,021	)
Contract owners’ equity beginning of period		115,463,580		119,443,228		331,562,376		196,203,033		22,931,485		26,005,927		80,313,388		86,244,409
Contract owners’ equity end of period	$	122,237,011		115,463,580		345,949,863		331,562,376		23,009,414		22,931,485		64,578,678		80,313,388
CHANGES IN UNITS:
Beginning units		8,783,438		9,499,298		30,574,890		18,911,688		1,330,056		1,555,282		3,035,848		3,867,500
Units purchased		3,749,887		2,837,447		9,127,693		20,441,450		259,030		349,644		348,871		361,356
Units redeemed		(3,669,989	)	(3,553,307	)	(9,210,447	)	(8,778,248	)	(372,428	)	(574,870	)	(777,365	)	(1,193,008	)
Ending units		8,863,336		8,783,438		30,492,136		30,574,890		1,216,658		1,330,056		2,607,354		3,035,848

(Continued)

45

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	NVITSmComp					NVITNWFund				NVITNWLead				NVITUSGro
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(52,776	)	(61,522	)	5,037,157		4,901,772		21,624		7,431		(4,713	)	14,099
Realized gain (loss) on investments		1,774,957		13,129,717		36,597,476		1,402,245		4,045		738		(7,974	)	(68,320	)
Change in unrealized gain (loss) on investments		(13,324,530	)	(3,983,920	)	(23,147,644	)	56,960,310		(179,532	)	83,224		1,327,479		(200,490	)
Reinvested capital gains		13,780,217		2,239,910		26,261,593		-		322,938		113,501		-		130,686
Net increase (decrease) in contract owners’ equity resulting from operations		2,177,868		11,324,185		44,748,582		63,264,327		169,075		204,894		1,314,792		(124,025	)
Equity transactions:
Purchase payments received from contract owners (note 6)		7,676,882		11,006,301		5,052,311		5,631,009		101,207		95,367		365,176		700,449
Transfers between funds		(3,150,515	)	(18,838,133	)	(130,747,319	)	(1,739,199	)	764,473		422,280		966,508		123,032
Surrenders (note 6)		(5,980,795	)	(6,025,856	)	(2,255,466	)	(2,132,968	)	(37,183	)	(2,965	)	(249,522	)	(590,255	)
Death benefits (note 4)		(299,943	)	(260,687	)	(2,784,096	)	(332,227	)	(691	)	-		(6,430	)	(26,342	)
Net policy repayments (loans) (note 5)		(329,828	)	(364,919	)	(567,731	)	(752,529	)	(22,926	)	(1,611	)	(81,603	)	(46,269	)
Deductions for surrender charges (note 2d)		(134,196	)	(139,993	)	(140,442	)	(193,180	)	(805	)	(480	)	(5,615	)	(14,853	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(2,748,147	)	(3,096,872	)	(5,870,177	)	(5,735,389	)	(42,996	)	(32,855	)	(192,936	)	(244,363	)
Asset charges (note 3):
FPVUL & VEL contracts		(159,675	)	(158,429	)	(206,960	)	(193,484	)	(3,484	)	(2,578	)	(12,654	)	(13,600	)
MSP contracts		(5,500	)	(5,020	)	(14,530	)	(14,263	)	(6	)	-		(497	)	(442	)
SL contracts		(26,356	)	(24,669	)	(17,649	)	(15,690	)	(1,081	)	(714	)	(1,995	)	(2,313	)
Adjustments to maintain reserves		(1,294	)	(62,516	)	411		4,424		(20	)	27		84		55
Net equity transactions		(5,159,367	)	(17,970,793	)	(137,551,648	)	(5,473,496	)	756,488		476,471		780,515		(114,901	)
Net change in contract owners’ equity		(2,981,499	)	(6,646,608	)	(92,803,066	)	57,790,831		925,563		681,365		2,095,307		(238,926	)
Contract owners’ equity beginning of period		101,283,263		107,929,871		528,730,499		470,939,668		1,545,595		864,230		6,541,533		6,780,459
Contract owners’ equity end of period	$	98,301,764		101,283,263		435,927,433		528,730,499		2,471,158		1,545,595		8,636,840		6,541,533
CHANGES IN UNITS:
Beginning units		4,807,692		5,767,374		41,070,072		41,489,502		95,970		62,358		417,938		431,480
Units purchased		775,425		715,029		361,685		444,215		53,784		48,609		102,600		84,716
Units redeemed		(992,957	)	(1,674,711	)	(10,216,321	)	(863,645	)	(12,004	)	(14,997	)	(69,734	)	(98,258	)
Ending units		4,590,160		4,807,692		31,215,436		41,070,072		137,750		95,970		450,804		417,938

(Continued)

46

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	NVITVKVal					NVITMltSec				NBTAFasc				NBTAGuard
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	252,458		215,731		894,111		702,956		(1,623	)	(1,815	)	28,394		95,651
Realized gain (loss) on investments		386,501		611,592		(46,529	)	14,731		81,135		78,642		1,423,112		2,245,862
Change in unrealized gain (loss) on investments		(1,615,122	)	499,983		145,385		51,097		(109,895	)	(36,527	)	(490,657	)	(418,853	)
Reinvested capital gains		666,775		577,219		1,101		38,017		14,207		45,103		-		-
Net increase (decrease) in contract owners’ equity resulting from operations		(309,388	)	1,904,525		994,068		806,801		(16,176	)	85,403		960,849		1,922,660
Equity transactions:
Purchase payments received from contract owners (note 6)		1,390,523		1,717,353		1,688,306		1,807,496		146,992		181,213		865,049		887,138
Transfers between funds		1,111,088		347,555		6,600,687		(1,130,497	)	476,028		(282,594	)	(1,518,839	)	(964,203	)
Surrenders (note 6)		(767,489	)	(563,976	)	(2,352,346	)	(1,536,865	)	(84,650	)	(47,239	)	(831,265	)	(1,705,503	)
Death benefits (note 4)		(46,361	)	(130,765	)	(94,429	)	(285,442	)	(485	)	(1,821	)	(14,398	)	(29,599	)
Net policy repayments (loans) (note 5)		(124,679	)	(128,466	)	(124,144	)	(5,560	)	(10,951	)	(22,508	)	(98,543	)	(189,086	)
Deductions for surrender charges (note 2d)		(62,327	)	(34,111	)	(28,156	)	(25,056	)	(1,540	)	(974	)	(33,345	)	(22,589	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(612,654	)	(611,392	)	(647,554	)	(605,722	)	(42,991	)	(42,693	)	(456,772	)	(530,149	)
Asset charges (note 3):
FPVUL & VEL contracts		(49,353	)	(43,708	)	(34,649	)	(32,124	)	(3,587	)	(2,505	)	(34,369	)	(32,924	)
MSP contracts		(1,861	)	(1,297	)	(3,112	)	(3,307	)	(9	)	(85	)	(863	)	(939	)
SL contracts		(7,158	)	(5,807	)	(6,896	)	(5,862	)	(519	)	(498	)	(3,821	)	(4,041	)
Adjustments to maintain reserves		(31	)	99		104		(8	)	(20	)	74		8		36
Net equity transactions		829,698		545,485		4,997,811		(1,822,947	)	478,268		(219,630	)	(2,127,158	)	(2,591,859	)
Net change in contract owners’ equity		520,310		2,450,010		5,991,879		(1,016,146	)	462,092		(134,227	)	(1,166,309	)	(669,199	)
Contract owners’ equity beginning of period		13,620,225		11,170,215		18,535,654		19,551,800		1,548,041		1,682,268		13,939,908		14,609,107
Contract owners’ equity end of period	$	14,140,535		13,620,225		24,527,533		18,535,654		2,010,133		1,548,041		12,773,599		13,939,908
CHANGES IN UNITS:
Beginning units		917,588		873,378		1,218,460		1,351,476		101,912		116,494		760,688		934,782
Units purchased		197,638		175,325		582,515		158,491		49,468		27,221		64,818		154,898
Units redeemed		(131,834	)	(131,115	)	(249,729	)	(291,507	)	(19,740	)	(41,803	)	(191,832	)	(328,992	)
Ending units		983,392		917,588		1,551,246		1,218,460		131,640		101,912		633,674		760,688

(Continued)

47

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	NBTAInt					NBTAMCGr				NBTAPart				NBTARegI
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	69,179		3,750		(24,011	)	(22,024	)	124,790		136,790		745		730
Realized gain (loss) on investments		144,850		64,388		2,826,675		1,903,659		780,824		2,935,967		33,868		(14,805	)
Change in unrealized gain (loss) on investments		(380,354	)	183,156		6,405,275		3,585,864		(1,165,305	)	(2,822,988	)	(28,828	)	12,278
Reinvested capital gains		245,830		13,829		-		-		2,014,528		2,237,618		20,694		22,223
Net increase (decrease) in contract owners’ equity resulting from operations		79,505		265,123		9,207,939		5,467,499		1,754,837		2,487,387		26,479		20,426
Equity transactions:
Purchase payments received from contract owners (note 6)		358,782		216,888		2,615,746		4,023,169		1,083,019		1,561,021		30,871		12,694
Transfers between funds		1,976,152		1,146,282		215,894		(1,734,701	)	87,747		815,963		425,549		399,771
Surrenders (note 6)		(68,663	)	(108,990	)	(2,411,434	)	(1,585,818	)	(1,152,951	)	(5,958,775	)	(24,648	)	(1,466	)
Death benefits (note 4)		-		-		(45,413	)	(88,663	)	(46,278	)	(34,546	)	(1,656	)	-
Net policy repayments (loans) (note 5)		(48,573	)	(46,365	)	(321,555	)	(157,366	)	(215,608	)	(680,813	)	(2,814	)	-
Deductions for surrender charges (note 2d)		(4,016	)	(2,291	)	(91,950	)	(122,940	)	(18,508	)	(63,405	)	-		-
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(125,872	)	(56,459	)	(1,819,681	)	(1,799,054	)	(721,945	)	(815,350	)	(24,688	)	(9,310	)
Asset charges (note 3):
FPVUL & VEL contracts		(10,837	)	(4,456	)	(114,501	)	(102,689	)	(54,526	)	(54,760	)	-		-
MSP contracts		(830	)	(233	)	(2,117	)	(2,090	)	(1,624	)	(1,489	)	-		-
SL contracts		(1,919	)	(498	)	(17,643	)	(15,066	)	(13,264	)	(12,080	)	-		-
Adjustments to maintain reserves		(92	)	748		126		107		180		2,087		(21	)	(938	)
Net equity transactions		2,074,132		1,144,626		(1,992,528	)	(1,585,111	)	(1,053,757	)	(5,242,147	)	402,593		400,751
Net change in contract owners’ equity		2,153,637		1,409,749		7,215,411		3,882,388		701,080		(2,754,760	)	429,072		421,177
Contract owners’ equity beginning of period		2,043,676		633,927		42,018,811		38,136,423		20,707,714		23,462,474		421,177		-
Contract owners’ equity end of period	$	4,197,313		2,043,676		49,234,222		42,018,811		21,408,794		20,707,714		850,249		421,177
CHANGES IN UNITS:
Beginning units		140,884		53,950		2,370,878		2,443,662		1,186,366		1,534,846		41,094		-
Units purchased		162,648		99,337		314,230		261,641		127,991		193,885		54,649		42,315
Units redeemed		(23,192	)	(12,403	)	(365,848	)	(334,425	)	(191,619	)	(542,365	)	(15,181	)	(1,221	)
Ending units		280,340		140,884		2,319,260		2,370,878		1,122,738		1,186,366		80,562		41,094

(Continued)

48

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	NBTARegS					NBTSocRes				OppCapAp				OppGlSec3
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	5,364		3,419		3,373		3,512		101,507		290,028		244,490		109,643
Realized gain (loss) on investments		17,720		7,578		95,838		84,079		6,719,902		6,558,021		407,900		216,685
Change in unrealized gain (loss) on investments		(44,082	)	8,407		105,082		177,186		9,684,670		2,466,146		(391,749	)	1,264,016
Reinvested capital gains		34,794		47,400		12,686		24,933		-		-		890,130		573,997
Net increase (decrease) in contract owners’ equity resulting from operations		13,796		66,804		216,979		289,710		16,506,079		9,314,195		1,150,771		2,164,341
Equity transactions:
Purchase payments received from contract owners (note 6)		166,291		77,630		505,485		469,710		8,908,934		13,571,860		3,872,113		3,887,872
Transfers between funds		354,850		477,234		1,576,590		707,196		(4,903,637	)	(20,777,203	)	695,556		3,708,909
Surrenders (note 6)		(43,073	)	(51,066	)	(161,532	)	(152,125	)	(5,455,212	)	(4,677,523	)	(628,603	)	(657,688	)
Death benefits (note 4)		-		-		-		-		(201,427	)	(120,277	)	(16,782	)	(28,039	)
Net policy repayments (loans) (note 5)		(1,403	)	(4,356	)	(22,401	)	(9,253	)	(969,994	)	(321,628	)	(248,139	)	(78,170	)
Deductions for surrender charges (note 2d)		(605	)	(726	)	(11,783	)	(11,943	)	(181,339	)	(216,478	)	(52,984	)	(41,812	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(36,655	)	(25,199	)	(158,957	)	(118,796	)	(3,830,226	)	(4,147,291	)	(841,921	)	(672,243	)
Asset charges (note 3):
FPVUL & VEL contracts		(4,106	)	(2,680	)	(11,046	)	(7,089	)	(208,136	)	(199,499	)	(64,092	)	(42,792	)
MSP contracts		(120	)	(57	)	(1,270	)	(307	)	(6,183	)	(6,029	)	(1,529	)	(923	)
SL contracts		(575	)	(234	)	(2,779	)	(2,022	)	(28,295	)	(26,270	)	(11,539	)	(9,127	)
Adjustments to maintain reserves		50		25		15		62		842		4,713		687		30
Net equity transactions		434,654		470,571		1,712,322		875,433		(6,874,673	)	(16,915,625	)	2,702,767		6,066,017
Net change in contract owners’ equity		448,450		537,375		1,929,301		1,165,143		9,631,406		(7,601,430	)	3,853,538		8,230,358
Contract owners’ equity beginning of period		806,767		269,392		2,727,354		1,562,211		123,105,847		130,707,277		16,951,140		8,720,782
Contract owners’ equity end of period	$	1,255,217		806,767		4,656,655		2,727,354		132,737,253		123,105,847		20,804,678		16,951,140
CHANGES IN UNITS:
Beginning units		62,360		23,100		160,134		104,292		9,247,300		10,683,274		1,194,348		723,136
Units purchased		36,883		42,368		115,981		71,098		1,701,790		1,281,089		334,319		594,916
Units redeemed		(5,095	)	(3,108	)	(22,047	)	(15,256	)	(1,886,370	)	(2,717,063	)	(150,171	)	(123,704	)
Ending units		94,148		62,360		254,068		160,134		9,062,720		9,247,300		1,378,496		1,194,348

(Continued)

49

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	OppGlSec					OppHighInc3			OppHighInc				OppMStSCap
Investment activity:	2007			2006		2007		2006	2007		2006		2007		2006
Net investment income (loss)	$	846,098		653,896		-		-	314,323		258,840		15,649		4,810
Realized gain (loss) on investments		3,526,168		8,813,547		(6,634	)	-	86,244		(18,628	)	167,507		156,168
Change in unrealized gain (loss) on investments		(3,673,827	)	(1,859,919	)	(19,298	)	-	(343,433	)	119,146		(459,107	)	210,349
Reinvested capital gains		3,596,308		4,090,534		-		-	-		-		166,883		94,934
Net increase (decrease) in contract owners’ equity resulting from operations		4,294,747		11,698,058		(25,932	)	-	57,134		359,358		(109,068	)	466,261
Equity transactions:
Purchase payments received from contract owners (note 6)		3,797,108		2,915,675		709,190		-	1,082,944		532,106		780,405		680,348
Transfers between funds		276,478		1,041,332		250,372		-	(2,419,418	)	227,330		755,331		1,271,772
Surrenders (note 6)		(2,108,991	)	(8,605,245	)	(25,203	)	-	(159,395	)	(106,681	)	(104,836	)	(284,848	)
Death benefits (note 4)		(16,525	)	(122,420	)	-		-	-		(802	)	(12,370	)	(35,812	)
Net policy repayments (loans) (note 5)		(412,767	)	(218,423	)	54,725		-	(39,080	)	(47,547	)	(89,390	)	(2,810	)
Deductions for surrender charges (note 2d)		(59,987	)	(86,123	)	(734	)	-	(16,904	)	(12,825	)	(11,852	)	(23,293	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(1,494,333	)	(1,744,211	)	(21,896	)	-	(222,796	)	(308,843	)	(225,202	)	(205,569	)
Asset charges (note 3):
FPVUL & VEL contracts		(72,352	)	(81,862	)	(1,313	)	-	(13,593	)	(14,128	)	(18,899	)	(14,409	)
MSP contracts		(2,218	)	(2,061	)	(4	)	-	(343	)	(302	)	(265	)	(207	)
SL contracts		(12,664	)	(14,148	)	(787	)	-	(1,520	)	(1,596	)	(3,019	)	(1,701	)
Adjustments to maintain reserves		155		1,897		92		-	38		14		(18	)	145
Net equity transactions		(106,097	)	(6,915,589	)	964,442		-	(1,790,066	)	266,726		1,069,885		1,383,616
Net change in contract owners’ equity		4,188,650		4,782,469		938,510		-	(1,732,932	)	626,084		960,817		1,849,877
Contract owners’ equity beginning of period		71,703,657		66,921,188		-		-	4,422,033		3,795,949		4,514,334		2,664,457
Contract owners’ equity end of period	$	75,892,307		71,703,657		938,510		-	2,689,101		4,422,033		5,475,151		4,514,334
CHANGES IN UNITS:
Beginning units		4,816,044		5,273,314		-		-	324,172		304,496		215,614		146,346
Units purchased		730,054		991,724		108,703		-	84,130		57,743		74,470		99,399
Units redeemed		(739,896	)	(1,448,994	)	(11,559	)	-	(210,968	)	(38,067	)	(25,378	)	(30,131	)
Ending units		4,806,202		4,816,044		97,144		-	197,334		324,172		264,706		215,614

(Continued)

50

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	OppMSt					OppMidCap				PVITAllAst				PVITLowDur
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	435,438		438,967		(37,301	)	(45,719	)	128,819		128,582		1,913,743		1,576,571
Realized gain (loss) on investments		2,488,360		1,963,250		2,820,783		3,970,282		8,648		62,978		(167,628	)	(319,633	)
Change in unrealized gain (loss) on investments		(967,352	)	3,463,093		141,986		(2,446,101	)	(16,995	)	(54,520	)	1,198,669		210,497
Reinvested capital gains		-		-		-		-		-		3,877		-		-
Net increase (decrease) in contract owners’ equity resulting from operations		1,956,446		5,865,310		2,925,468		1,478,462		120,472		140,917		2,944,784		1,467,435
Equity transactions:
Purchase payments received from contract owners (note 6)		3,690,819		4,120,791		3,427,890		4,625,076		144,724		417,108		3,597,316		3,274,924
Transfers between funds		(780,458	)	(244,548	)	(1,452,282	)	(7,824,283	)	482,973		(2,728,357	)	2,555,949		(130,978	)
Surrenders (note 6)		(2,533,652	)	(2,633,893	)	(4,254,620	)	(3,278,861	)	(232,208	)	(371,662	)	(986,777	)	(2,584,179	)
Death benefits (note 4)		(199,548	)	(306,762	)	(139,588	)	(114,492	)	(1,178	)	-		(60,757	)	(12,566	)
Net policy repayments (loans) (note 5)		(281,305	)	(432,302	)	(378,872	)	(129,426	)	-		-		(42,960	)	840
Deductions for surrender charges (note 2d)		(123,182	)	(127,429	)	(111,321	)	(162,360	)	-		-		-		-
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(1,995,539	)	(2,107,721	)	(1,992,158	)	(2,339,153	)	(22,357	)	(34,790	)	(827,477	)	(879,519	)
Asset charges (note 3):
FPVUL & VEL contracts		(140,142	)	(132,654	)	(121,672	)	(128,675	)	-		-		-		-
MSP contracts		(5,805	)	(5,596	)	(2,609	)	(2,733	)	-		-		-		-
SL contracts		(17,229	)	(16,675	)	(12,439	)	(13,529	)	-		-		-		-
Adjustments to maintain reserves		35		40		29		(255	)	20		110		4,838		(1,166	)
Net equity transactions		(2,386,005	)	(1,886,749	)	(5,037,642	)	(9,368,691	)	371,974		(2,717,591	)	4,240,132		(332,644	)
Net change in contract owners’ equity		(429,559	)	3,978,561		(2,112,174	)	(7,890,229	)	492,446		(2,576,674	)	7,184,916		1,134,791
Contract owners’ equity beginning of period		44,276,761		40,298,200		47,680,834		55,571,063		1,536,847		4,113,521		40,492,090		39,357,299
Contract owners’ equity end of period	$	43,847,202		44,276,761		45,568,660		47,680,834		2,029,293		1,536,847		47,677,006		40,492,090
CHANGES IN UNITS:
Beginning units		3,166,310		3,313,744		3,773,684		4,702,756		123,954		346,486		3,670,596		3,699,808
Units purchased		439,351		419,706		348,013		376,202		48,196		45,134		1,479,479		434,776
Units redeemed		(593,883	)	(567,140	)	(758,449	)	(1,305,274	)	(20,766	)	(267,666	)	(1,121,955	)	(463,988	)
Ending units		3,011,778		3,166,310		3,363,248		3,773,684		151,384		123,954		4,028,120		3,670,596

(Continued)

51

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	PVITRealRet					PVITTotRet				PioVHiYield				PVTGroInc
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	1,999,912		1,586,946		6,022,108		4,249,566		756,130		645,917		17,993		18,028
Realized gain (loss) on investments		(620,299	)	(330,063	)	(1,269,327	)	(749,358	)	(27,374	)	(140,344	)	53,316		35,631
Change in unrealized gain (loss) on investments		3,064,499		(2,320,724	)	6,741,192		(291,320	)	11,391		323,000		(329,857	)	102,959
Reinvested capital gains		120,384		1,140,949		-		654,903		13,618		171,999		206,758		28,081
Net increase (decrease) in contract owners’ equity resulting from operations		4,564,496		77,108		11,493,973		3,863,791		753,765		1,000,572		(51,790	)	184,699
Equity transactions:
Purchase payments received from contract owners (note 6)		2,971,467		3,855,829		10,036,226		11,445,348		1,169,898		1,272,832		144,799		192,407
Transfers between funds		5,652,439		10,103,605		19,558,903		33,883,799		1,707,078		711,631		(280,484	)	(44,426	)
Surrenders (note 6)		(1,694,488	)	(2,190,978	)	(4,425,966	)	(13,016,934	)	(183,443	)	(263,529	)	(11,050	)	(30,875	)
Death benefits (note 4)		(28,740	)	(10,531	)	(156,187	)	(33,557	)	(9,978	)	(2,578	)	-		-
Net policy repayments (loans) (note 5)		(372,736	)	107		(1,354,201	)	(26,634	)	(11,848	)	175		(17,511	)	(21,032	)
Deductions for surrender charges (note 2d)		-		-		-		-		-		-		(3,348	)	(8,618	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(533,350	)	(535,709	)	(1,723,540	)	(1,589,933	)	(175,606	)	(161,357	)	(77,473	)	(83,572	)
Asset charges (note 3):
FPVUL & VEL contracts		-		-		-		-		-		-		(5,034	)	(4,578	)
MSP contracts		-		-		-		-		-		-		(40	)	(36	)
SL contracts		-		-		-		-		-		-		(349	)	(307	)
Adjustments to maintain reserves		5,410		11,835		3,500		30,288		(2,920	)	137		(20	)	20
Net equity transactions		6,000,002		11,234,158		21,938,735		30,692,377		2,493,181		1,557,311		(250,509	)	(1,017	)
Net change in contract owners’ equity		10,564,498		11,311,266		33,432,708		34,556,168		3,246,946		2,557,883		(302,299	)	183,682
Contract owners’ equity beginning of period		43,096,183		31,784,917		124,221,767		89,665,599		13,675,160		11,117,277		1,333,714		1,150,032
Contract owners’ equity end of period	$	53,660,681		43,096,183		157,654,475		124,221,767		16,922,106		13,675,160		1,031,415		1,333,714
CHANGES IN UNITS:
Beginning units		3,453,452		2,555,674		10,375,034		7,755,960		840,566		739,418		79,204		79,162
Units purchased		843,355		1,220,721		3,930,079		3,928,794		298,319		133,955		9,142		11,200
Units redeemed		(400,197	)	(322,943	)	(2,181,903	)	(1,309,720	)	(155,999	)	(32,807	)	(23,158	)	(11,158	)
Ending units		3,896,610		3,453,452		12,123,210		10,375,034		982,886		840,566		65,188		79,204

(Continued)

52

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	PVTIntlEq					PVTVoygr				RCFMicroCap				TRoeBlChip2
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	71,341		12,530		-		389		666,825		(55,521	)	2,508		2,764
Realized gain (loss) on investments		601,287		375,808		12,981		6,926		2,843,088		4,280,337		49,202		20,130
Change in unrealized gain (loss) on investments		(765,324	)	520,130		10,030		12,151		(6,178,520	)	1,284,180		200,505		75,614
Reinvested capital gains		308,832		-		-		-		4,638,864		2,562,710		-		-
Net increase (decrease) in contract owners’ equity resulting from operations		216,136		908,468		23,011		19,466		1,970,257		8,071,706		252,215		98,508
Equity transactions:
Purchase payments received from contract owners (note 6)		276,917		220,234		93,868		108,648		3,535,598		5,413,595		428,338		211,549
Transfers between funds		654,875		2,167,875		(29,054	)	(28,660	)	4,897,994		2,521,755		969,998		814,033
Surrenders (note 6)		(2,705,953	)	(409,962	)	(11,432	)	(6,539	)	(3,340,590	)	(5,177,630	)	(28,609	)	(5,819	)
Death benefits (note 4)		-		(863	)	-		(9,679	)	(67,890	)	(19,609	)	-		-
Net policy repayments (loans) (note 5)		(71,912	)	(212,480	)	(1,374	)	(1,653	)	(324,950	)	(14,185	)	(3,256	)	(3,902	)
Deductions for surrender charges (note 2d)		(42,978	)	(10,394	)	(4,601	)	(2,997	)	-		-		(1,412	)	(992	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(107,212	)	(105,882	)	(32,129	)	(36,622	)	(726,471	)	(712,198	)	(94,502	)	(36,353	)
Asset charges (note 3):
FPVUL & VEL contracts		(8,968	)	(7,388	)	(2,070	)	(1,773	)	-		-		(6,487	)	(2,476	)
MSP contracts		(287	)	(220	)	(8	)	(7	)	-		-		(686	)	(251	)
SL contracts		(914	)	(2,321	)	(169	)	(154	)	-		-		(1,061	)	(357	)
Adjustments to maintain reserves		37		38		1		(18	)	1,829		15,515		55		(7	)
Net equity transactions		(2,006,396	)	1,638,637		13,032		20,546		3,975,520		2,027,243		1,262,379		975,425
Net change in contract owners’ equity		(1,790,260	)	2,547,105		36,043		40,012		5,945,777		10,098,949		1,514,593		1,073,933
Contract owners’ equity beginning of period		4,854,301		2,307,196		399,362		359,350		48,996,850		38,897,901		1,447,892		373,959
Contract owners’ equity end of period	$	3,064,041		4,854,301		435,405		399,362		54,942,627		48,996,850		2,962,485		1,447,892
CHANGES IN UNITS:
Beginning units		227,790		138,276		28,784		27,308		2,136,548		2,048,560		117,044		33,050
Units purchased		37,262		154,928		6,820		8,335		780,947		515,021		107,456		88,498
Units redeemed		(132,372	)	(65,414	)	(5,864	)	(6,859	)	(610,903	)	(427,033	)	(11,608	)	(4,504	)
Ending units		132,680		227,790		29,740		28,784		2,306,592		2,136,548		212,892		117,044

(Continued)

53

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	TRowEqInc2					TRowLtdTBd2				TRowMidCap2				TRowNwAmGr
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	1,217,141		864,340		31,808		13,800		(61,195	)	(70,941	)	(40,234	)	(36,053	)
Realized gain (loss) on investments		2,442,812		3,458,350		505		(1,565	)	795,326		2,418,664		358,825		168,410
Change in unrealized gain (loss) on investments		(7,086,343	)	7,085,486		9,510		5,730		(119,402	)	(4,201,040	)	(144,425	)	86,063
Reinvested capital gains		5,888,178		2,346,470		-		-		2,917,556		2,767,140		1,393,989		140,937
Net increase (decrease) in contract owners’ equity resulting from operations		2,461,788		13,754,646		41,823		17,965		3,532,285		913,823		1,568,155		359,357
Equity transactions:
Purchase payments received from contract owners (note 6)		6,699,108		8,015,837		39,059		49,427		1,551,393		2,301,920		1,422,255		1,663,612
Transfers between funds		5,950,710		12,414,642		477,727		307,240		1,142,298		(2,433,681	)	597,210		(1,364,094	)
Surrenders (note 6)		(4,533,132	)	(11,104,790	)	(706	)	(19,071	)	(1,247,446	)	(5,825,971	)	(312,800	)	(3,522,388	)
Death benefits (note 4)		(348,000	)	(78,939	)	-		-		(7,610	)	(38,052	)	(2,395	)	(21,928	)
Net policy repayments (loans) (note 5)		(390,286	)	(20,030	)	939		374		-		-		-		-
Deductions for surrender charges (note 2d)		(11,317	)	(1,671	)	(93	)	(1,701	)	-		-		-		-
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(1,463,229	)	(1,270,895	)	(19,732	)	(11,120	)	(255,221	)	(309,455	)	(181,347	)	(188,860	)
Asset charges (note 3):
FPVUL & VEL contracts		(13,769	)	(5,571	)	(1,583	)	(872	)	-		-		-		-
MSP contracts		(1,406	)	(189	)	(90	)	(25	)	-		-		-		-
SL contracts		(3,475	)	(1,426	)	(585	)	(101	)	-		-		-		-
Adjustments to maintain reserves		(31	)	23,259		97		(9	)	480		3,236		217		1,091
Net equity transactions		5,885,173		7,970,227		495,032		324,142		1,183,894		(6,302,003	)	1,523,140		(3,432,567	)
Net change in contract owners’ equity		8,346,961		21,724,873		536,855		342,107		4,716,179		(5,388,180	)	3,091,295		(3,073,210	)
Contract owners’ equity beginning of period		90,826,099		69,101,226		543,609		201,502		22,715,392		28,103,572		11,308,565		14,381,775
Contract owners’ equity end of period	$	99,173,060		90,826,099		1,080,464		543,609		27,431,571		22,715,392		14,399,860		11,308,565
CHANGES IN UNITS:
Beginning units		5,136,926		4,627,720		51,598		19,896		1,128,870		1,481,904		939,794		1,278,060
Units purchased		1,435,442		1,306,509		48,184		34,852		379,140		153,093		255,291		235,785
Units redeemed		(1,121,126	)	(797,303	)	(2,322	)	(3,150	)	(344,488	)	(506,127	)	(140,439	)	(574,051	)
Ending units		5,451,242		5,136,926		97,460		51,598		1,163,522		1,128,870		1,054,646		939,794

(Continued)

54

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	TRowPerStrBal				DrySRGro				TurnGrowth			VEWrldEMkt
Investment activity:	2007			2006	2007		2006		2007	2006		2007		2006
Net investment income (loss)	$	611		-	79,177		13,295		-	-		80,751		84,938
Realized gain (loss) on investments		(153	)	-	388,700		(55,407	)	-	-		2,424,018		1,284,003
Change in unrealized gain (loss) on investments		(6,873	)	-	673,725		1,370,321		-	-		850,067		2,758,263
Reinvested capital gains		5,564		-	-		-		-	-		3,792,797		1,453,634
Net increase (decrease) in contract owners’ equity resulting from operations		(851	)	-	1,141,602		1,328,209		-	-		7,147,633		5,580,838
Equity transactions:
Purchase payments received from contract owners (note 6)		(1	)	-	1,669,314		1,957,145		-	(314	)	2,180,732		1,351,579
Transfers between funds		68,501		-	(919,841	)	(882,076	)	-	(158	)	5,342,557		1,591,024
Surrenders (note 6)		-		-	(1,145,171	)	(906,318	)	-	-		(2,715,913	)	(1,042,203	)
Death benefits (note 4)		-		-	(70,515	)	(79,789	)	-	-		(17,254	)	(8,419	)
Net policy repayments (loans) (note 5)		-		-	(145,670	)	(66,827	)	-	45		(225,567	)	(487,331	)
Deductions for surrender charges (note 2d)		-		-	(42,105	)	(78,414	)	-	-		(67,425	)	(43,711	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(1,837	)	-	(948,726	)	(1,052,968	)	-	427		(680,487	)	(611,984	)
Asset charges (note 3):
FPVUL & VEL contracts		-		-	(61,327	)	(59,616	)	-	-		(56,895	)	(44,978	)
MSP contracts		-		-	(2,201	)	(2,467	)	-	-		(933	)	(647	)
SL contracts		-		-	(4,892	)	(5,025	)	-	-		(6,996	)	(6,099	)
Adjustments to maintain reserves		28		-	127		1,725		-	-		52		(345	)
Net equity transactions		66,691		-	(1,671,007	)	(1,174,630	)	-	-		3,751,872		696,886
Net change in contract owners’ equity		65,840		-	(529,405	)	153,579		-	-		10,899,505		6,277,724
Contract owners’ equity beginning of period		-		-	15,428,539		15,274,960		-	-		20,038,378		13,760,654
Contract owners’ equity end of period	$	65,840		-	14,899,134		15,428,539		-	-		30,937,883		20,038,378
CHANGES IN UNITS:
Beginning units		-		-	1,291,626		1,397,018		-	-		722,392		698,520
Units purchased		6,231		-	170,624		182,190		-	49		201,896		136,935
Units redeemed		(171	)	-	(304,318	)	(287,582	)	-	(49	)	(140,816	)	(113,063	)
Ending units		6,060		-	1,157,932		1,291,626		-	-		783,472		722,392

(Continued)

55

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	VEWrldHAs					VKUCorPlus				VKUEmMkt				VKUMCpGro
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	3,145		(4,133	)	101,028		77,741		780,351		1,330,659		(10,665	)	(9,401	)
Realized gain (loss) on investments		2,746,926		4,562,925		(4,898	)	(8,603	)	(156,036	)	(46,443	)	123,206		779,703
Change in unrealized gain (loss) on investments		3,778,614		(1,696,211	)	49,582		542		(291,052	)	(428,311	)	902,460		(658,265	)
Reinvested capital gains		2,778,314		1,034,045		-		10,330		339,236		293,124		356,505		414,443
Net increase (decrease) in contract owners’ equity resulting from operations		9,306,999		3,896,626		145,712		80,010		672,499		1,149,029		1,371,506		526,480
Equity transactions:
Purchase payments received from contract owners (note 6)		1,842,459		1,455,729		331,884		282,476		899,552		1,126,294		514,478		625,729
Transfers between funds		5,003,434		1,215,205		935,694		676,418		506,893		(3,393,738	)	2,083,000		689,264
Surrenders (note 6)		(2,075,418	)	(1,683,571	)	(20,459	)	(100,849	)	(459,758	)	(564,400	)	(397,963	)	(225,258	)
Death benefits (note 4)		(63,440	)	(36,968	)	(12,161	)	-		(6,488	)	(21,145	)	(17,838	)	(5,059	)
Net policy repayments (loans) (note 5)		(142,453	)	55,554		(10,954	)	(17,816	)	(89,124	)	(103,345	)	(118,658	)	(26,087	)
Deductions for surrender charges (note 2d)		(15,474	)	(51,830	)	(3,439	)	(4,133	)	(8,810	)	(29,118	)	(6,663	)	(14,362	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(581,186	)	(531,025	)	(127,517	)	(107,363	)	(319,737	)	(371,946	)	(179,405	)	(173,251	)
Asset charges (note 3):
FPVUL & VEL contracts		(39,632	)	(36,114	)	(8,674	)	(7,082	)	(22,360	)	(22,200	)	(11,015	)	(10,068	)
MSP contracts		(1,097	)	(947	)	(818	)	(316	)	(909	)	(831	)	(154	)	(130	)
SL contracts		(6,656	)	(5,760	)	(2,520	)	(911	)	(3,833	)	(3,626	)	(1,350	)	(1,151	)
Adjustments to maintain reserves		(1,244	)	(2,992	)	8		15		82		101		15		(135	)
Net equity transactions		3,919,293		377,281		1,081,045		720,439		495,507		(3,383,954	)	1,864,446		859,492
Net change in contract owners’ equity		13,226,292		4,273,907		1,226,757		800,449		1,168,006		(2,234,925	)	3,235,952		1,385,972
Contract owners’ equity beginning of period		21,140,115		16,866,208		2,203,064		1,402,615		11,057,484		13,292,409		5,953,935		4,567,963
Contract owners’ equity end of period	$	34,366,407		21,140,115		3,429,821		2,203,064		12,225,490		11,057,484		9,189,887		5,953,935
CHANGES IN UNITS:
Beginning units		720,990		718,664		190,806		126,012		514,122		682,272		641,876		536,530
Units purchased		188,799		88,502		110,813		84,880		117,121		88,656		242,918		178,601
Units redeemed		(135,009	)	(86,176	)	(19,925	)	(20,086	)	(110,583	)	(256,806	)	(75,020	)	(73,255	)
Ending units		774,780		720,990		281,694		190,806		520,660		514,122		809,774		641,876

(Continued)

56

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	VKUUSRE					WRGrowth				WRRealEstS				WRSciTech
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	891,057		788,090		(108	)	(1,761	)	753		246		(1	)	-
Realized gain (loss) on investments		13,619,379		6,245,079		6,486		(74,296	)	1,347		480		1		-
Change in unrealized gain (loss) on investments		(37,103,354	)	14,169,666		(6,613	)	829		(30,222	)	4,210		(752	)	-
Reinvested capital gains		7,855,595		5,346,275		5,561		-		6,902		1,120		833		-
Net increase (decrease) in contract owners’ equity resulting from operations		(14,737,323	)	26,549,110		5,326		(75,228	)	(21,220	)	6,056		81		-
Equity transactions:
Purchase payments received from contract owners (note 6)		7,996,860		9,310,060		446		-		8,026		629		-		-
Transfers between funds		(14,575,193	)	1,549,147		213,856		104,397		119,692		40,773		4,475		-
Surrenders (note 6)		(5,715,823	)	(3,486,873	)	(97	)	-		-		(319	)	-		-
Death benefits (note 4)		(94,246	)	(111,497	)	-		-		(13	)	-		-		-
Net policy repayments (loans) (note 5)		(871,143	)	(516,555	)	-		-		-		-		-		-
Deductions for surrender charges (note 2d)		(138,585	)	(151,721	)	-		-		-		-		-		-
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(2,680,819	)	(2,753,121	)	(579	)	(6,134	)	(1,748	)	(479	)	-		-
Asset charges (note 3):
FPVUL & VEL contracts		(160,011	)	(151,490	)	-		-		-		-		-		-
MSP contracts		(7,515	)	(8,360	)	-		-		-		-		-		-
SL contracts		(22,906	)	(19,001	)	-		-		-		-		-		-
Adjustments to maintain reserves		(1,594	)	9,186		50		8		(13	)	54		8		-
Net equity transactions		(16,270,975	)	3,669,775		213,676		98,271		125,944		40,658		4,483		-
Net change in contract owners’ equity		(31,008,298	)	30,218,885		219,002		23,043		104,724		46,714		4,564		-
Contract owners’ equity beginning of period		100,644,807		70,425,922		23,043		-		46,714		-		-		-
Contract owners’ equity end of period	$	69,636,509		100,644,807		242,045		23,043		151,438		46,714		4,564		-
CHANGES IN UNITS:
Beginning units		2,819,290		2,709,484		1,882		-		3,140		-		-		-
Units purchased		452,612		412,839		15,885		90,417		9,507		3,198		448		-
Units redeemed		(934,510	)	(303,033	)	(2,105	)	(88,535	)	(527	)	(58	)	-		-
Ending units		2,337,392		2,819,290		15,662		1,882		12,120		3,140		448		-

(Continued)

57

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	WFVOpp
Investment activity:	2007			2006
Net investment income (loss)	$	152,034		(26,293	)
Realized gain (loss) on investments		1,395,702		3,018,661
Change in unrealized gain (loss) on investments		(3,753,806	)	(2,833,629	)
Reinvested capital gains		4,072,320		3,200,397
Net increase (decrease) in contract owners’ equity resulting from operations		1,866,250		3,359,136
Equity transactions:
Purchase payments received from contract owners (note 6)		1,651,619		3,443,916
Transfers between funds		(2,371,425	)	(5,466,911	)
Surrenders (note 6)		(1,259,320	)	(1,514,361	)
Death benefits (note 4)		(11,325	)	(131,177	)
Net policy repayments (loans) (note 5)		(454,366	)	(173,669	)
Deductions for surrender charges (note 2d)		(42,949	)	(52,172	)
Redemptions to pay cost of insurance charges and administrative charges (notes 2b and 2c)		(824,682	)	(928,700	)
Asset charges (note 3):
FPVUL & VEL contracts		(55,843	)	(54,429	)
MSP contracts		(1,246	)	(1,283	)
SL contracts		(12,989	)	(12,740	)
Adjustments to maintain reserves		2,073		62
Net equity transactions		(3,380,453	)	(4,891,464	)
Net change in contract owners’ equity		(1,514,203	)	(1,532,328	)
Contract owners’ equity beginning of period		28,527,670		30,059,998
Contract owners’ equity end of period	$	27,013,467		28,527,670
CHANGES IN UNITS:
Beginning units		2,101,264		2,485,342
Units purchased		206,219		319,153
Units redeemed		(440,523	)	(703,231	)
Ending units		1,866,960		2,101,264

See accompanying notes to financial statements.

58

NATIONWIDE VLI SEPARATE ACCOUNT–4

NOTES TO FINANCIAL STATEMENTS

December 31, 2007 and 2006

(1) Background and Summary of Significant Accounting Policies

(a) Organization and Nature of Operations

The Nationwide VLI Separate Account-4 (the Account) was established pursuant to a resolution of the Board of Directors of Nationwide Life Insurance Company (the Company) on December 3, 1997. The Account is registered as a unit investment trust under the Investment Company Act of 1940.

The Company offers Flexible Premium, Modified Single Premium, Variable Executive Life and Survivorship Life Variable Life Insurance Policies through the Account. The primary distribution for contracts is through wholesalers and brokers.

(b) The Contracts

Only contracts with a front-end sales charge, a contingent deferred sales charge and certain other fees are offered for purchase. See note 2 for a discussion of policy charges and note 3 for asset charges.

Contract owners may invest in the following:

Portfolios of the AIM Variable Insurance Funds (AIM VIF);

AIM VIF – Basic Value Fund – Series I (AIMBValue)

AIM VIF – Capital Appreciation Fund – Series I (AIMCapAp)

AIM VIF – Capital Development Fund – Series I (AIMCapDev)

AIM VIF – International Growth Fund – Series I (AIMIntGr)

AllianceBernstein Growth and Income Fund – Class A (AlGrIncA)*

Portfolios of the AllianceBernstein Variable Products Series Fund, Inc. (AllianceBernstein VPS);

AllianceBernstein VPS – Growth and Income Portfolio – Class A (AlVGrIncA)

AllianceBernstein VPS – International Value Portfolio – Class A (AlVIntlValA)

AllianceBernstein VPS – Small Mid Cap Value Portfolio – Class A (AlVSmMdCpA)

Portfolios of the American Century Variable Portfolios, Inc. (American Century VP);

American Century VP – Income & Growth Fund – Class I (ACVPIncGr)

American Century VP – Inflation Protection Fund – Class II (ACVPInflPro2)

American Century VP – International Fund – Class I (ACVPInt)

American Century VP – International Fund – Class III (ACVPInt3)

American Century VP – Mid Cap Value Fund – Class I (ACVPMdCpV)

American Century VP – Ultra^® Fund – Class I (ACVPUltra)

American Century VP – Value Fund – Class I (ACVPVal)

American Century VP – Vista^SM Fund – Class I (ACVPVista1)

Portfolios of the American Funds Insurance Series^® (American Funds IS);

American Funds IS – Asset Allocation Fund – Class 2 (AFAssetAlloc)*

American Funds IS – Bond Fund – Class 2 (AFBnd2)*

American Funds IS – Growth Fund – Class 2 (AFGrowth2)*

BlackRock International Index Portfolio – Class II (BRIntIndex)*

BlackRock Large Cap Core V.I. Fund – Class II (BRLrgCp)

Calvert Variable Series Inc. – Social Equity Portfolio (CalVSSocEq)

Portfolios of the Credit Suisse Trust;

Credit Suisse Trust – Global Small Cap Portfolio (CSTGlobSmCp)

Credit Suisse Trust – International Focus Portfolio (CSTIntFoc)

Credit Suisse Trust – Large Cap Value Portfolio (CSTLCapV)

Davis Variable Account Fund, Inc. – Davis Value Portfolio (DavVAFVal)*

(Continued)

59

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

Portfolios of the Dreyfus Investment Portfolios (Dreyfus IP);

Dreyfus IP – European Equity Portfolio (DryIPEuroEq)*

Dreyfus IP – Mid Cap Stock Portfolio – Initial Shares (DryIPMidCap)

Dreyfus IP – Small Cap Stock Index Portfolio – Service Shares (DryIPSmCap)

Dreyfus Mid Cap Index Fund, Inc. (DryMdCpInx)*

Dreyfus Stock Index Fund, Inc. – Initial Shares (DryStkIx)

Portfolios of the Dreyfus Variable Investment Fund (Dreyfus VIF);

Dreyfus VIF – Appreciation Portfolio – Initial Shares (DryVApp)

Dreyfus VIF – Developing Leaders Portfolio – Initial Shares (DryVDevLd)

Dreyfus VIF – International Value Portfolio – Initial Shares (DryVIntVal)

Portfolios of the DWS VIP Funds;

DWS Investments VIT Funds – DWS Small Cap Index VIP – Class A (DWSSm)*

DWS Variable Series II – Dreman High Return Equity VIP – Class B (DWSVHghRtrn)

DWS Variable Series II – Dreman Small Mid Cap Value VIP – Class B (DWSSmMidCp)*

Portfolios of the Federated Insurance Series (Federated IS);

Federated IS – American Leaders Fund II – Primary Shares (FedAmLead)

Federated IS – Capital Appreciation Fund II – Primary Shares (FedCapAp)

Federated IS – Market Opportunity Fund II – Service Shares (FedMrkOp)

Federated IS – Quality Bond Fund II – Primary Shares (FedQualBd)

Portfolios of the Fidelity^® Variable Insurance Products Fund (Fidelity^® VIP);

Fidelity^® VIP – Equity-Income Portfolio – Service Class (FidVIPEIS)

Fidelity^® VIP – Growth Portfolio – Service Class (FidVIPGrS)

Fidelity^® VIP – High Income Portfolio – Service Class (FidVIPHIS)

Fidelity^® VIP – High Income Portfolio – Service Class R (FidVIPHISR)

Fidelity^® VIP – Overseas Portfolio – Service Class (FidVIPOvS)

Fidelity^® VIP – Overseas Portfolio – Service Class R (FidVIPOvSR)

Portfolios of the Fidelity^® Variable Insurance Products Fund II (Fidelity^® VIP II);

Fidelity^® VIP II – Contrafund^® Portfolio – Service Class (FidVIPConS)

Fidelity^® VIP II – Index 500 Portfolio – Initial Class (FidVIPIdx500)*

Fidelity^® VIP II – Investment Grade Bond Portfolio – Service Class (FidVIPIGBdS)

Portfolios of the Fidelity^® Variable Insurance Products Fund III (Fidelity^® VIP III);

Fidelity^® VIP III – Growth & Income Portfolio – Service Class (FidVIPGrInS)*

Fidelity^® VIP III – Growth Opportunities Portfolio – Service Class (FidVIPGrOpS)

Fidelity^® VIP III – Mid Cap Portfolio – Service Class (FidVIPMCapS)

Fidelity^® VIP III – Value Strategies Portfolio – Service Class (FidVIPVaIS)

Portfolios of the Fidelity^® Variable Insurance Products Fund IV (Fidelity^® VIP IV);

Fidelity^® VIP IV – Energy Portfolio – Service Class 2 (FidVIPEnergyS2)

Fidelity^® VIP IV – Freedom Fund 2010 Portfolio – Service Class (FidVIPFree10S)

Fidelity^® VIP IV – Freedom Fund 2020 Portfolio – Service Class (FidVIPFree20S)

Fidelity^® VIP IV – Freedom Fund 2030 Portfolio – Service Class (FidVIPFree30S)

Portfolios of the Franklin Templeton Variable Insurance Products Trust (Franklin Templeton VIP);

Franklin Templeton VIP – Developing Markets Securities Fund – Class 3 (FrVIPDevMrk3)

Franklin Templeton VIP – Foreign Securities Fund – Class 1 (FrVIPForSec)

Franklin Templeton VIP – Foreign Securities Fund – Class 2 (FrVIPForSec2)

Franklin Templeton VIP – Foreign Securities Fund – Class 3 (FrVIPForSec3)

Franklin Templeton VIP – Global Income Securities Fund – Class 2 (FrVIPGlInc2)*

Franklin Templeton VIP – Global Income Securities Fund – Class 3 (FrVIPGlInc3)

Franklin Templeton VIP – Income Securities Fund – Class 2 (FrVIPIncSec2)

Franklin Templeton VIP – Mutual Discovery Securities Fund – Class 2 (FrVIPMDSec2)*

(Continued)

60

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

Franklin Templeton VIP – Rising Dividends Securities Fund – Class 1 (FrVIPRisDiv)

Franklin Templeton VIP – Small Cap Value Securities Fund – Class 1 (FrVIPSCapV1)

Franklin Templeton VIP – Small Cap Value Securities Fund – Class 2 (FrVIPSCapV2)

Goldman Sachs Mid Cap Value Fund – Class A (GSMdCpValA)*

Goldman Sachs Variable Insurance Trust – Mid Cap Value Fund (GSVTMdCpV)

Portfolios of the Janus Aspen Series;

Janus Aspen Series – Balanced Portfolio – Service Shares (JAspBal)

Janus Aspen Series – Forty Portfolio – Service Shares (JAspForty)

Janus Aspen Series – Global Technology Portfolio – Service Shares (JAspGlTechS)

Janus Aspen Series – INTECH Risk-Managed Core Portfolio – Service Shares (JAspRMgCore)

Janus Aspen Series – International Growth Portfolio – Service II Shares (JAspIntGroS2)

Janus Aspen Series – International Growth Portfolio – Service Shares (JAspIntGroS)

Portfolios of the JPMorgan Insurance Trust;

JPMorgan Insurance Trust – Balanced Portfolio 1 (JPMBal)*

JPMorgan Insurance Trust – Core Bond Portfolio 1 (JPMCBond)*

JPMorgan Insurance Trust – Diversified Equity Portfolio 1 (JPMDivEq)*

JPMorgan Insurance Trust – Diversified Mid Cap Growth Portfolio 1 (JPMMidCapGr)

JPMorgan Insurance Trust – Diversified Mid Cap Value Portfolio 1 (JPMMidCapV)

JPMorgan Insurance Trust – Equity Index Portfolio 1 (JPMEqIndx)*

JPMorgan Insurance Trust – Government Bond Portfolio 1 (JPMGvtBd)*

JPMorgan Insurance Trust – Intrepid Mid Cap Portfolio 1 (JPMMidCap)*

JPMorgan Insurance Trust – Large Cap Growth Portfolio 1 (JPMLgCapGr)*

Portfolio of the Legg Mason Partners Variable Equity Trust (Legg Mason Partners VET);

Legg Mason Partners VET – Small Cap Growth Portfolio – Class I (LMVESmCap)*

Portfolio of the Lehman Brothers Advisers Management Trust (Lehman Brothers AMT);

Lehman Brothers AMT – Short Duration Bond Portfolio – I Class

(formerly Neuberger Berman AMT – Limited Maturity Bond Portfolio – Class I) (LBTShrtDBd)

Portfolio of the Lincoln Variable Insurance Products Trust (Lincoln VIP);

Lincoln VIP – Baron Growth Opportunities Funds – Service Class

(formerly Baron Capital Funds Trust – Baron Capital Asset Fund – Insurance Shares) (LincGroOp)

Lord Abbett Series Fund, Inc. – Mid Cap Value Portfolio – Class VC (LrdMidCapV)

Portfolios of the M Fund, Inc.;

M Fund, Inc. – Brandes International Equity Fund (MFIIntl)*

M Fund, Inc. – Business Opportunity Value Fund (MFIBusOp)*

M Fund, Inc. – Frontier Capital Appreciation Fund (MFICapAp)*

M Fund, Inc. – Turner Core Growth Fund (MFICoreGro)*

Portfolios of the MFS Variable Insurance Trust (MFS VIT);

MFS VIT – Investors Growth Stock Series – Initial Class (MFSInvGrSt)

MFS VIT – Research International Series – Service Class (MFSRsrchIntl)

MFS VIT – Value Series – Initial Class (MFSValue)

MFS VIT – Value Series – Service Class (MFSValueS)*

Nationwide GVIT Strategic Value Fund – Class I (NWStratV)*

Portfolios of the Nationwide Variable Insurance Trust (Nationwide VIT) (formerly Gartmore GVIT);

Nationwide VIT – American Funds Asset Allocation Fund – Class II (NVITAstAll2)

Nationwide VIT – American Funds Bond Fund – Class II (NVITBnd2)

Nationwide VIT – American Funds Global Growth Fund – Class II (NVITGlobGr2)

Nationwide VIT – American Funds Growth – Income Fund – Class II (NVITGroInc2)

Nationwide VIT – American Funds Growth Fund – Class II (NVITGrowth2)

Nationwide VIT – Federated High Income Bond Fund – Class I (NVITFHiInc)

(Continued)

61

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

Nationwide VIT – Federated High Income Bond Fund – Class III (NVITFHiInc3)

Nationwide VIT – Gartmore Emerging Markets Fund – Class I (NVITEmMrkts)

Nationwide VIT – Gartmore Emerging Markets Fund – Class III (NVITEmMrkts3)

Nationwide VIT – Gartmore Global Utilities Fund – Class I (NVITGlUtl)

Nationwide VIT – Gartmore International Growth Fund – Class I (NVITIntGro)

Nationwide VIT – Gartmore Worldwide Leaders Fund – Class I (NVITWLead)

Nationwide VIT – Global Financial Services Fund – Class I (NVITGlFin)

Nationwide VIT – Global Health Sciences Fund – Class I (NVITGlHlth)

Nationwide VIT – Global Health Sciences Fund – Class III (NVITGlHlth3)

Nationwide VIT – Global Technology and Communications Fund – Class I (NVITGlTech)

Nationwide VIT – Global Technology and Communications Fund – Class III (NVITGlTech3)

Nationwide VIT – Government Bond Fund – Class I (NVITGvtBd)

Nationwide VIT – Growth Fund – Class I (NVITGrowth)

Nationwide VIT – International Index Fund – Class II (NVITIntIdx2)

Nationwide VIT – International Index Fund – Class VI (NVITIntIdx6)

Nationwide VIT – International Value Fund – Class I (NVITIntValI)

Nationwide VIT – International Value Fund – Class III (NVITIntVal3)

Nationwide VIT – Investor Destinations Aggressive Fund – Class II (NVITIDAgg2)

Nationwide VIT – Investor Destinations Conservative Fund – Class II (NVITIDCon2)

Nationwide VIT – Investor Destinations Moderate Fund – Class II (NVITIDMod2)

Nationwide VIT – Investor Destinations Moderately Aggressive Fund – Class II (NVITIDModAg2)

Nationwide VIT – Investor Destinations Moderately Conservative Fund – Class II (NVITIDModCon2)

Nationwide VIT – J.P. Morgan Balanced Fund – Class I (NVITJPBal)

Nationwide VIT – Mid Cap Growth Fund – Class I (NVITMdCpGr)

Nationwide VIT – Mid Cap Index Fund – Class I (NVITMidCap)

Nationwide VIT – Money Market Fund – Class I (NVITMyMkt)

Nationwide VIT – Money Market Fund – Class V (NVITMyMkt5)

Nationwide VIT – Multi-Manager Small Cap Growth Fund – Class I

(formerly Gartmore GVIT – Small Cap Growth Fund – Class I) (NVITSmCapGr)

Nationwide VIT – Multi-Manager Small Cap Value Fund – Class I

(formerly Gartmore GVIT – Small Cap Value Fund – Class I) (NVITSmCapVal)

Nationwide VIT – Multi-Manager Small Company Fund – Class I

(formerly Gartmore GVIT – Small Company Fund – Class I) (NVITSmComp)

Nationwide VIT – Nationwide Fund – Class I (NVITNWFund)

Nationwide VIT – Nationwide Leaders Fund – Class I (NVITNWLead)

Nationwide VIT – U.S. Growth Leaders Fund – Class I (NVITUSGro)

Nationwide VIT – Van Kampen Comstock Value Fund – Class I (NVITVKVal)

Nationwide VIT – Van Kampen Multi Sector Bond Fund – Class I (NVITMltSec)

Portfolios of the Neuberger Berman Advisers Management Trust (Neuberger Berman AMT);

Neuberger Berman AMT – Fasciano Portfolio – S Class Shares (NBTAFasc)

Neuberger Berman AMT – Guardian Portfolio – I Class Shares (NBTAGuard)

Neuberger Berman AMT – International Portfolio – Class S (NBTAInt)

Neuberger Berman AMT – Mid Cap Growth Portfolio – I Class Shares (NBTAMCGr)

Neuberger Berman AMT – Partners Portfolio – Class I (NBTAPart)

Neuberger Berman AMT – Regency Portfolio – Class I (NBTARegI)

Neuberger Berman AMT – Regency Portfolio – Class S (NBTARegS)

Neuberger Berman AMT – Socially Responsive Portfolio Class I (NBTSocRes)

Portfolios of the Oppenheimer Variable Account Funds (Oppenheimer VAF);

Oppenheimer VAF – Capital Appreciation Fund – Non-Service Shares (OppCapAp)

Oppenheimer VAF – Global Securities Fund – Class 3 (OppGlSec3)

Oppenheimer VAF – Global Securities Fund – Non-Service Shares (OppGlSec)

Oppenheimer VAF – High Income Fund – Class 3 (OppHighInc3)

Oppenheimer VAF – High Income Fund – Non-Service Shares (OppHighInc)

(Continued)

62

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

Oppenheimer VAF – Main Street Small Cap Fund^® – Non-Service Shares (OppMStSCap)

Oppenheimer VAF – Main Street^® – Non-Service Shares (OppMSt)

Oppenheimer VAF – Mid Cap Fund – Non-Service Shares (OppMidCap)

Oppenheimer VAF – Strategic Bond Fund – Non-Service Shares (OppStrBdFnd)*

PIMCO Total Return Fund – Administrative Shares (PimTotRet)*

Portfolios of the PIMCO Variable Insurance Trust (PIMCO VIT);

PIMCO VIT – All Asset Portfolio – Administrative Shares (PVITAllAst)

PIMCO VIT – Low Duration Portfolio – Administrative Shares (PVITLowDur)

PIMCO VIT – Real Return Portfolio – Administrative Shares (PVITRealRet)

PIMCO VIT – Total Return Portfolio – Administrative Shares (PVITTotRet)

Portfolios of the Pioneer Variable Contracts Trust (Pioneer VCT);

Pioneer VCT – Pioneer Emerging Markets Portfolio – Class I Shares (PioVEmMrkt)*

Pioneer VCT – Pioneer High Yield Portfolio – Class I Shares (PioVHiYield)

Portfolios of the Putnam Variable Trust (Putnam VT);

Putnam VT – Growth and Income Fund – IB Shares (PVTGroInc)

Putnam VT – International Equity Fund – IB Shares (PVTIntlEq)

Putnam VT – OTC & Emerging Growth Fund – IB Shares (PVTOTCGr)*

Putnam VT – Small Cap Value Fund – IB Shares (PVTSmCapV)*

Putnam VT – Voyager Fund – IB Shares (PVTVoygr)

Portfolios of the Royce Captial Fund;

Royce Capital Fund – Micro Cap Portfolio (RCFMicroCap)

Royce Capital Fund – Small Cap Portfolio (RCFSmCap)*

Portfolios of T. Rowe Price;

T. Rowe Price Blue Chip Growth Portfolio – II (TRoeBlChip2)

T. Rowe Price Equity Income Portfolio – II (TRowEqInc2)

T. Rowe Price Health Sciences Portfolio – II (TRowHlthSc2)*

T. Rowe Price Limited Term Bond Portfolio – Class II (TRowLtdTBd2)

T. Rowe Price Mid Cap Growth Portfolio – II (TRowMidCap2)

T. Rowe Price New America Growth Portfolio (TRowNwAmGr)

T. Rowe Price Personal Strategy Balanced Portfolio (TRowPerStrBal)

The Dreyfus Socially Responsible Growth Fund, Inc. – Initial Shares (DrySRGro)

Turner GVIT Growth Focus Fund – Class I (TurnGrowth)*

Portfolios of the Van Eck Worldwide Insurance Trust;

Van Eck Worldwide Insurance Trust – Emerging Markets Fund – Initial Class (VEWrldEMkt)

Van Eck Worldwide Insurance Trust – Hard Assets Fund – Initial Class (VEWrldHAs)

Portfolios of the Van Kampen – The Universal Institutional Funds, Inc. (Van Kampen UIF);

Van Kampen UIF – Core Plus Fixed Income Portfolio – Class I (VKUCorPlus)

Van Kampen UIF – Emerging Markets Debt Portfolio – Class I (VKUEmMkt)

Van Kampen UIF – Equity Growth Portfolio – Class I (VKUEqGro)*

Van Kampen UIF – Global Real Estate Portfolio – Class II (VKUGlobRE)*

Van Kampen UIF – Mid Cap Growth Portfolio – class I (VKUMCpGro)

Van Kampen UIF – U.S. Real Estate Portfolio – Class I (VKUUSRE)

Portfolios of the Vanguard^® Variable Insurance Funds (Vanguard^® VIF);

Vanguard^® VIF – Balanced Portfolio (VVIFBal)*

Vanguard^® VIF – Diversified Value Portfolio (VVIFDivVal)*

Vanguard^® VIF – International Portfolio (VVIFIntl)*

Vanguard^® VIF – Mid Cap Index Portfolio (VVIFMCpIndx)*

Vanguard^® VIF – Short-Term Investment-Grade Portfolio (VVIFStTmInv)*

(Continued)

63

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

Portfolios of the W&R Target Funds, Inc.;

W&R Target Funds, Inc. – Asset Strategy Portfolio (WRAsStrat)*

W&R Target Funds, Inc. – Growth Portfolio (WRGrowth)

W&R Target Funds, Inc. – Real Estate Securities Portfolio (WRRealEstS)

W&R Target Funds, Inc. – Science and Technology Portfolio (WRSciTech)

Portfolios of the Wells Fargo Advantage Variable Trust Funds^SM (Wells Fargo AVT);

Wells Fargo AVT – Discovery Fund^SM (WFVDisc)*

Wells Fargo AVT – Opportunity Fund^SM (WFVOpp)

Wells Fargo AVT – Small Cap Growth Fund (WFVSmCpGr)*

At December 31, 2007, contract owners were invested in all of the above funds, except those noted with an asterisk (*). The contract owners’ equity is affected by the investment results of each fund, equity transactions by contract owners and certain contract expenses (see notes 2 and 3). The accompanying financial statements include only contract owners’ purchase payments pertaining to the variable portions of their contracts and exclude any purchase payments for fixed dollar benefits, the latter being included in the accounts of the Company.

A contract owner may choose from among a number of different underlying mutual fund options. The underlying mutual fund options are not available to the general public directly. The underlying mutual funds are available as investment options in variable life insurance policies or variable annuity contracts issued by life insurance companies or, in some cases, through participation in certain qualified pension or retirement plans.

A purchase payment could be presented as a negative equity transaction in the Statements of Changes in Contract Owners’ Equity if a prior period purchase payment is refunded to a contract owner due to a contract cancellation during the free look period, and/or if a gain is realized by the contract owner during the free look period.

Some of the underlying mutual funds have been established by investment advisers which manage publicly traded mutual funds having similar names and investment objectives. While some of the underlying mutual funds may be similar to, and may in fact be modeled after, publicly traded mutual funds, the underlying mutual funds are not otherwise directly related to any publicly traded mutual fund. Consequently, the investment performance of publicly traded mutual funds and any corresponding underlying mutual funds may differ substantially.

(c) Security Valuation, Transactions and Related Investment Income

Investments in underlying mutual funds are valued on the closing net asset value per share at December 31, 2007 of such funds, which value their investment securities at fair value. Fund purchases and sales are accounted for on the trade date (date the order to buy or sell is executed). The cost of investments sold is determined on a First in-First out basis, and dividends (which include capital gain distributions) are accrued as of the ex-dividend date and are reinvested in the underlying mutual funds.

(d) Federal Income Taxes

Operations of the Account form a part of, and are taxed with, operations of the Company, which is taxed as a life insurance company under the provisions of the Internal Revenue Code.

The Company does not provide for income taxes within the Account. Taxes are the responsibility of the contract owner upon termination or withdrawal.

(e) Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with U.S generally accepted accounting principles may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, if any, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

(Continued)

64

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

(f) New Accounting Pronouncement

In September 2006, the FASB issued SFAS 157, Fair Value Measurements (SFAS 157). SFAS 157 provides enhanced guidance for using fair value to measure assets and liabilities and requires new disclosures about fair value measurements. SFAS 157 also provides guidance regarding the extent to which companies measure assets and liabilities at fair value, the information used to measure fair value, and the effect of fair value measurements on earnings. For assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to initial recognition, the reporting entity shall disclose information that enables financial statement users to assess the inputs used to develop those measurements. SFAS 157 applies whenever other standards require (or permit) assets or liabilities to be measured at fair value but does not expand the use of fair value in any new circumstances. SFAS 157 is effective for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years, with early adoption permitted. The Company will adopt SFAS 157 effective January 1, 2008. SFAS 157 is not expected to have a material impact on the Company’s financial position or results of operations upon adoption.

(2) Policy Charges

(a) Deductions from Premium

For individual flexible premium and survivorship contracts, the Company deducts a minimum of 0.5% to a maximum of 7.5% of all premiums received to cover premium tax and sales expense. The Company may, at its sole discretion, reduce the sales loading portion of the premium load.

There are no deductions from premium on modified single premium contracts.

For the Corporate Series, the Company deducts a front-end sales load of 9.0% (5.5% starting in the seventh policy year) from each premium payment received. The Company may reduce this charge where the size or nature of the group results in savings in sales, underwriting, or administrative costs. Variations due to differences in costs are determined in a manner not unfairly discriminatory to policy owners.

For the periods ended December 31, 2007 and 2006, total front-end sales charge deductions were $22,337,781 and $30,403,541, respectively.

(b) Cost of Insurance

A cost of insurance charge is assessed monthly against each contract. The amount of the charge varies widely and is based upon age, sex, rate class and net amount at risk (death benefit less total contract value). This charge is assessed against each contract by liquidating units.

(c) Administrative Charges

For individual flexible premium survivorship and modified single premium contracts, the Company currently deducts a minimum monthly administration charge of $5 per policy month to a maximum of $10 per policy month to recover policy maintenance, accounting, record keeping and other administrative expenses. These charges are assessed monthly against each contract by liquidating units.

For Protection^SM flexible premium contracts, the Company deducts a policy expense per $1,000 of specified amount charge for the first two policy years. This charge varies with the age of the insured and will not exceed $0.30 per $1,000 of specified amount. For last survivor contracts, the Company deducts a per $1,000 of specified amount charge for the first 3 policy years. This charge varies with the age of the insured and will not exceed $0.40 per $1,000 of specified amount. These charges are assessed monthly against each contract by liquidating units.

For the Corporate Series, the Company deducts a monthly administrative expense charge to recover policy maintenance, accounting, record keeping and other administrative expenses. These charges are assessed against each contract by liquidating units. Currently, this charge is $5 per month in all policy years (guaranteed not to exceed $10 per month).

(Continued)

65

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

(d) Surrender Charges

Policy surrenders result in a redemption of the contract value from the Account and payment of the surrender proceeds to the contract owner or designee. The surrender proceeds consist of the contract value, less any outstanding policy loans, and less a surrender charge, if applicable. The amount of the charge is based upon a specified percentage of the initial surrender charge which varies by issue age, sex and rate class. For flexible premium survivorship, modified single premium and corporate contracts, the charge is 100% of the initial surrender charge in the first year, and declines a specified amount each year to 0% of the initial surrender charge in the ninth year or later.

The Company may waive the surrender charge for certain contracts in which the sales expenses normally associated with the distribution of a contract are not incurred.

(3) Asset Charges

(a) Modified Single Premium Contracts (MSP)

For modified single premium contracts, the Company deducts a mortality and expense risk charge equal to an annualized rate of 0.70% of the cash surrender value of the sub-accounts. This charge is assessed monthly against each contract by liquidating units.

(b) Flexible Premium and Variable Executive Life Contracts (SPVUL and VEL)

For Choice Life^SM contracts, the Company deducts a mortality and expense risk charge of $0.50 per $1,000 on the first $25,000 of cash surrender value attributable to the variable account, $0.25 per $1,000 on $25,001 up to $250,000 of cash surrender value attributable to the variable account and $0.08 per $1,000 over $250,000 of cash surrender value attributable to the variable account. This charge is assessed monthly against each contract by liquidating units.

For Choice Life Protection^SM contracts and Best of America^® Protection^SM contracts, the Company deducts $0.66 per $1,000 of cash surrender value attributable to the variable account during the first through fifteenth years from the Policy Date. Thereafter, this charge is $0.25 per $1,000 of cash surrender value attributable to the variable account. This charge is assessed monthly against each contract by liquidating units.

(c) Survivorship Life Contracts (SL)

For Choice Survivorship and Last Survivor contracts, during the first ten policy years, the Company deducts a mortality and expense risk charge of $0.55 per $1,000 on the first $25,000 of cash surrender value attributable to the variable account; $0.55 per $1,000 on $25,001 up to $99,999 of cash surrender value attributable to the variable account; and $0.55 per $1,000 on $100,000 or more of cash surrender value attributable to the variable account. After ten years from the Policy Date, the Company deducts $0.55 per $1,000 on the first $25,000 of cash surrender value attributable to the variable account; $0.35 per $1,000 on $25,001 up to $99,999 of cash surrender value attributable to the variable account; and $0.20 per $1,000 on $100,000 or more of cash surrender value attributable to the variable account. This charge is assessed monthly against each contract by liquidating units.

For ChoiceLife^SM Survivorship II and Next Generation^SM Survivorship Life contracts, during the first fifteen policy years, the Company deducts a mortality and expense risk charge of $0.60 per $1,000 on the first $25,000 of cash surrender value attributable to the variable account; $0.30 per $1,000 on $25,001 up to $250,000 of cash surrender value attributable to the variable account; and $0.10 per $1,000 over $250,000 of cash surrender value attributable to the variable account. After fifteen years from the Policy Date, the Company deducts $0.60 per $1,000 on the first $25,000 of cash surrender value attributable to the variable account and $0.10 per $1,000 over $25,000 of cash surrender value attributable to the variable account. This charge is assessed monthly against each contract by liquidating units.

For Protection^SM Survivorship and ChoiceLife Protection^SM Survivorship Life contracts, during the first fifteen policy years, the Company deducts a mortality and expense risk charge of $0.80 per $1,000 of cash surrender value attributable to the variable account. After fifteen years from the Policy Date, the Company deducts $0.30 per $1,000 of cash surrender value attributable to the variable account. This charge is assessed monthly against each contract by liquidating units.

(Continued)

66

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

(d) Corporate Contracts

For the Corporate Series, the Company deducts from the assets of the Account, a charge to provide for mortality and expense risks. This charge is guaranteed not to exceed an annualized rate of 0.75% of the daily net assets of the Account. Currently, this rate is 0.40% during the first through fourth policy years, 0.25% during the fifth through twentieth policy years, and 0.10% thereafter. A reduced fee tier for Corporate Series contracts applies as 0.20% for all policy years. This charge is assessed through the daily unit value calculation.

The Company may reduce or eliminate certain charges where the size or nature of the group results in savings in sales, underwriting, administrative or other costs to the Company. These charges may be reduced in certain group sponsored arrangements or special exchange programs made available by the Company.

(4) Death Benefits

Death benefit proceeds result in a redemption of the contract value from the Account and payment of those proceeds, less any outstanding policy loans (and policy charges), to the legal beneficiary. For last survivor flexible premium contracts, the proceeds are payable on the death of the last surviving insured. In the event that the guaranteed death benefit exceeds the contract value on the date of death, the excess is paid by the Company’s general account.

(5) Policy Loans (Net of Repayments)

Contract provisions allow contract owners to borrow 90% of a policy’s variable cash surrender value plus 100% of a policy’s fixed cash surrender value less applicable value of surrender charge. Interest is charged on the outstanding loan and is due and payable in advance on the policy anniversary.

At the time the loan is granted, the amount of the loan is transferred from the Account to the Company’s general account as collateral for the outstanding loan. Collateral amounts in the general account are credited with the stated rate of interest in effect at the time the loan is made, subject to a guaranteed minimum rate. Interest credited is paid by the Company’s general account to the Account. Loan repayments result in a transfer of collateral including interest credited back to the Account.

(6) Related Party Transactions

The Company performs various services on behalf of the Mutual Fund Companies in which the Account invests and may receive fees for the services performed. These services include, among other things, shareholder communications, preparation, postage, fund transfer agency and various other record keeping and customer service functions. These fees are paid to an affiliate of the Company.

Contract owners may, with certain restrictions, transfer their assets between the Account and a fixed dollar contract (fixed account) maintained in the accounts of the Company. These transfers are the result of the contract owner executing fund exchanges. Fund exchanges from the Account to the fixed account are included in surrenders, and fund exchanges from the fixed account to the Account are included in purchase payments received from contact owners, as applicable, on the accompanying Statements of Change in Contract Owners’ Equity.

Policy loan transactions (note 5), executed at the direction of the contract owner, also result in transfers between the Account and the fixed account of the Company. The fixed account assets are not reflected in the accompanying financial statements.

For the periods ended December 31, 2007 and 2006, total transfers into the Account from the fixed account were $26,820,115 and $33,285,412, respectively, and total transfers from the Account to the fixed account were $52,254,217 and $48,694,028, respectively.

(Continued)

67

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

(7) Financial Highlights

The following is a summary of units, unit fair values and contract owners’ equity outstanding for variable universal life contracts as of the end of the periods indicated, and the contract expense rates, investment income ratio and total return for each period in the five year period ended December 31, 2007.

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
The BEST of AMERICA® America’s FUTURE Life SeriesSM
AIM VIF – Basic Value Fund – Series I
2007	0.00	%	315,430	$	17.772480	$	5,605,973	0.59	%	1.54	%
2006	0.00	%	334,122		17.502242		5,847,884	0.42	%	13.20	%
2005	0.00	%	300,432		15.460790		4,644,916	0.09	%	5.74	%
2004	0.00	%	218,854		14.622048		3,200,094	0.00	%	11.07	%
2003	0.00	%	62,247		13.164786		819,468	0.06	%	33.63	%
AIM VIF – Capital Appreciation Fund – Series I
2007	0.00	%	101,352		17.125365		1,735,690	0.00	%	12.01	%
2006	0.00	%	102,104		15.288632		1,561,030	0.06	%	6.30	%
2005	0.00	%	85,976		14.382523		1,236,552	0.08	%	8.84	%
2004	0.00	%	57,596		13.214909		761,126	0.00	%	6.63	%
2003	0.00	%	26,916		12.393708		333,589	0.00	%	23.94	% 05/01/03
AIM VIF – Capital Development Fund – Series I
2007	0.00	%	192,610		21.737696		4,186,898	0.00	%	10.84	%
2006	0.00	%	180,668		19.610981		3,543,077	0.00	%	16.52	%
2005	0.00	%	164,886		16.830569		2,775,125	0.00	%	9.60	%
2004	0.00	%	122,266		15.355666		1,877,476	0.00	%	15.50	%
2003	0.00	%	33,912		13.294993		450,860	0.00	%	35.36	%
AllianceBernstein VPS – Growth and Income Portfolio – Class A
2007	0.00	%	232,948		19.140759		4,458,802	1.44	%	5.12	%
2006	0.00	%	241,896		18.208779		4,404,631	1.37	%	17.29	%
2005	0.00	%	247,326		15.525074		3,839,754	1.48	%	4.87	%
2004	0.00	%	243,956		14.804614		3,611,674	0.92	%	11.46	%
2003	0.00	%	145,925		13.282209		1,938,206	0.51	%	32.50	%
AllianceBernstein VPS – Small/Mid Cap Value Portfolio – Class A
2007	0.00	%	214,120		20.478040		4,384,758	0.89	%	1.70	%
2006	0.00	%	168,136		20.134859		3,385,395	0.45	%	14.42	%
2005	0.00	%	198,030		17.597332		3,484,800	0.74	%	6.91	%
2004	0.00	%	181,154		16.459431		2,981,692	0.13	%	19.30	%
2003	0.00	%	28,635		13.796395		395,060	0.13	%	37.96	% 05/01/03
American Century VP – Income & Growth Fund – Class I
2007	0.00	%	1,143,260		17.695903		20,231,018	1.91	%	-0.07	%
2006	0.00	%	1,305,236		17.707797		23,112,854	1.85	%	17.09	%
2005	0.00	%	1,496,010		15.123633		22,625,106	1.94	%	4.63	%
2004	0.00	%	1,546,166		14.454301		22,348,749	1.37	%	12.99	%
2003	0.00	%	1,520,999		12.792293		19,457,065	1.28	%	29.35	%
American Century VP – Inflation Protection Fund – Class II
2007	0.00	%	555,690		12.340997		6,857,769	4.55	%	9.49	%
2006	0.00	%	555,240		11.270913		6,258,062	3.48	%	1.59	%
2005	0.00	%	535,932		11.094803		5,946,060	4.48	%	1.56	%
2004	0.00	%	457,932		10.924094		5,002,492	3.35	%	5.81	%
2003	0.00	%	108,990		10.324182		1,125,233	1.85	%	3.24	% 04/30/03
American Century VP – International Fund – Class I
2007	0.00	%	846,898		21.858923		18,512,278	0.70	%	18.06	%
2006	0.00	%	1,069,366		18.515660		19,800,017	1.58	%	25.03	%
2005	0.00	%	1,314,688		14.809535		19,469,918	1.25	%	13.25	%
2004	0.00	%	1,713,168		13.076396		22,402,063	0.56	%	14.92	%
2003	0.00	%	1,660,633		11.378318		18,895,210	0.73	%	24.51	%
American Century VP – International Fund – Class III
2007	0.00	%	702,238		17.230511		12,099,920	0.60	%	18.06	%
2006	0.00	%	548,782		14.595156		8,009,559	1.38	%	25.03	%
2005	0.00	%	366,150		11.673757		4,274,346	0.00	%	16.74	% 05/02/05

(Continued)

68

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
American Century VP – Mid Cap Value Fund – Class I
2007	0.00	%	172,152	$	13.306496	$	2,290,740	0.74	%	-2.31	%
2006	0.00	%	88,992		13.620466		1,212,113	0.96	%	20.30	%
2005	0.00	%	57,178		11.322176		647,379	1.24	%	13.22	% 05/02/05
American Century VP – Ultra® Fund – Class I
2007	0.00	%	263,464		13.288079		3,500,930	0.00	%	21.02	%
2006	0.00	%	257,010		10.980437		2,822,082	0.00	%	-3.28	%
2005	0.00	%	263,874		11.352287		2,995,573	0.00	%	2.17	%
2004	0.00	%	229,742		11.111676		2,552,819	0.00	%	10.68	%
2003	0.00	%	208,689		10.039885		2,095,214	0.00	%	24.90	%
American Century VP – Value Fund – Class I
2007	0.00	%	2,211,696		21.097489		46,661,232	1.58	%	-5.14	%
2006	0.00	%	2,442,604		22.240206		54,324,016	1.41	%	18.65	%
2005	0.00	%	2,800,196		18.743947		52,486,725	0.83	%	5.03	%
2004	0.00	%	2,668,438		17.845717		47,620,189	0.97	%	14.33	%
2003	0.00	%	2,467,117		15.608555		38,508,131	1.04	%	28.96	%
American Century VP – VistaSM Fund – Class I
2007	0.00	%	227,012		17.466180		3,965,032	0.00	%	39.77	%
2006	0.00	%	13,662		12.496264		170,724	0.00	%	9.01	%
2005	0.00	%	7,434		11.463606		85,220	0.00	%	14.64	% 05/02/05
Credit Suisse Trust – Global Small Cap Portfolio
2007	0.00	%	38,516		14.592824		562,057	0.00	%	-3.96	%
2006	0.00	%	46,476		15.193949		706,154	0.00	%	13.20	%
2005	0.00	%	48,980		13.421675		657,394	0.00	%	16.14	%
2004	0.00	%	54,638		11.556117		631,403	0.00	%	17.99	%
2003	0.00	%	58,125		9.794203		569,288	0.00	%	47.66	%
Credit Suisse Trust – International Focus Portfolio
2007	0.00	%	116,860		18.501094		2,162,038	1.09	%	16.60	%
2006	0.00	%	121,824		15.867715		1,933,069	1.01	%	18.65	%
2005	0.00	%	132,046		13.373190		1,765,876	0.88	%	17.44	%
2004	0.00	%	141,708		11.387391		1,613,684	0.99	%	14.74	%
2003	0.00	%	152,971		9.924331		1,518,135	0.49	%	33.09	%
Credit Suisse Trust – Large Cap Value Portfolio
2007	0.00	%	87,284		18.440646		1,609,573	1.30	%	1.79	%
2006	0.00	%	96,894		18.117019		1,755,430	0.89	%	19.35	%
2005	0.00	%	117,378		15.179777		1,781,772	0.73	%	8.14	%
2004	0.00	%	114,260		14.036771		1,603,841	0.58	%	11.34	%
2003	0.00	%	114,258		12.606777		1,440,425	0.76	%	25.16	%
Dreyfus IP – Small Cap Stock Index Portfolio – Service Shares
2007	0.00	%	618,466		15.709599		9,715,853	0.38	%	-0.65	%
2006	0.00	%	707,480		15.813075		11,187,434	0.38	%	14.41	%
2005	0.00	%	581,680		13.821296		8,039,571	0.00	%	7.23	%
2004	0.00	%	589,810		12.889095		7,602,117	0.57	%	21.88	%
2003	0.00	%	440,723		10.574853		4,660,581	0.27	%	37.78	%
Dreyfus Stock Index Fund, Inc. – Initial Shares
2007	0.00	%	9,395,826		17.287487		162,430,220	1.72	%	5.26	%
2006	0.00	%	10,489,244		16.424348		172,278,994	1.64	%	15.50	%
2005	0.00	%	12,914,370		14.220511		183,648,941	1.63	%	4.69	%
2004	0.00	%	13,432,296		13.583304		182,454,960	1.82	%	10.64	%
2003	0.00	%	12,939,837		12.277012		158,862,534	1.54	%	28.36	%
Dreyfus VIF – Appreciation Portfolio – Initial Shares
2007	0.00	%	1,088,634		18.055279		19,655,591	1.56	%	7.13	%
2006	0.00	%	1,210,752		16.853206		20,405,053	1.53	%	16.48	%
2005	0.00	%	1,326,026		14.469157		19,186,478	0.02	%	4.38	%
2004	0.00	%	1,281,098		13.862320		17,758,990	1.67	%	5.05	%
2003	0.00	%	1,185,642		13.196450		15,646,265	1.18	%	21.17	%

(Continued)

69

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Dreyfus VIF – Developing Leaders Portfolio – Initial Shares
2007	0.00	%	46,856	$	14.026060	$	657,205	0.76	%	-11.06	%
2006	0.00	%	52,662		15.770049		830,482	0.40	%	3.77	%
2005	0.00	%	58,416		15.197076		887,752	0.00	%	5.80	%
2004	0.00	%	63,226		14.363942		908,175	0.28	%	11.34	%
2003	0.00	%	15,972		12.900917		206,053	0.11	%	29.01	% 05/01/03
Federated IS – American Leaders Fund II – Primary Shares
2007	0.00	%	18,632		15.327257		285,577	1.51	%	-9.66	%
2006	0.00	%	21,354		16.967010		362,314	1.46	%	16.81	%
2005	0.00	%	21,684		14.525597		314,973	1.48	%	5.02	%
2004	0.00	%	22,444		13.830995		310,423	1.17	%	9.78	%
2003	0.00	%	12,199		12.598945		153,695	0.00	%	25.99	% 05/01/03
Federated IS – Capital Appreciation Fund II – Primary Shares
2007	0.00	%	30,528		16.845591		514,262	0.72	%	9.88	%
2006	0.00	%	27,898		15.330912		427,702	0.75	%	16.21	%
2005	0.00	%	26,192		13.192087		345,527	1.04	%	1.91	%
2004	0.00	%	28,136		12.944293		364,201	0.42	%	7.39	%
2003	0.00	%	8,379		12.052976		100,992	0.00	%	20.53	% 05/01/03
Federated IS – Market Opportunity Fund II – Service Shares
2007	0.00	%	4,512		10.240958		46,207	1.07	%	-1.48	%
2006	0.00	%	3,964		10.395256		41,207	0.00	%	3.95	% 05/01/06
Federated IS – Quality Bond Fund II – Primary Shares
2007	0.00	%	1,451,108		15.516026		22,515,429	5.83	%	5.38	%
2006	0.00	%	1,685,612		14.723396		24,817,933	5.17	%	4.15	%
2005	0.00	%	2,483,218		14.136175		35,103,204	3.55	%	1.30	%
2004	0.00	%	2,361,192		13.955112		32,950,699	3.92	%	3.62	%
2003	0.00	%	2,262,363		13.467590		30,468,577	3.30	%	4.65	%
Fidelity® VIP – Equity-Income Portfolio – Service Class
2007	0.00	%	3,474,112		18.889723		65,625,013	1.67	%	1.42	%
2006	0.00	%	3,666,100		18.625658		68,283,525	3.15	%	20.08	%
2005	0.00	%	3,799,536		15.511120		58,935,059	1.56	%	5.76	%
2004	0.00	%	3,986,154		14.666699		58,463,721	1.39	%	11.38	%
2003	0.00	%	3,691,492		13.167905		48,609,216	1.66	%	30.22	%
Fidelity® VIP – Growth Portfolio – Service Class
2007	0.00	%	3,775,216		19.173877		72,385,527	0.62	%	26.87	%
2006	0.00	%	3,992,818		15.113032		60,343,586	0.28	%	6.73	%
2005	0.00	%	4,330,880		14.159785		61,324,330	0.41	%	5.67	%
2004	0.00	%	4,602,660		13.399667		61,674,111	0.16	%	3.26	%
2003	0.00	%	4,622,588		12.976175		59,983,511	0.18	%	32.78	%
Fidelity® VIP – High Income Portfolio – Service Class
2007	0.00	%	877,636		11.868272		10,416,023	8.58	%	2.66	%
2006	0.00	%	1,194,886		11.561165		13,814,274	7.58	%	11.18	%
2005	0.00	%	1,308,856		10.398866		13,610,618	14.70	%	2.52	%
2004	0.00	%	1,366,190		10.142968		13,857,221	8.03	%	9.47	%
2003	0.00	%	1,549,745		9.265750		14,359,550	6.36	%	26.97	%
Fidelity® VIP – High Income Portfolio – Service Class R
2007	0.00	%	231,578		9.885500		2,289,264	10.69	%	-1.15	% 05/01/07
Fidelity® VIP – Overseas Portfolio – Service Class
2007	0.00	%	761,402		21.746938		16,558,162	3.19	%	17.21	%
2006	0.00	%	963,186		18.554369		17,871,308	0.84	%	17.95	%
2005	0.00	%	1,411,140		15.731142		22,198,844	0.56	%	18.97	%
2004	0.00	%	1,749,970		13.222678		23,139,290	0.98	%	13.49	%
2003	0.00	%	1,414,346		11.651219		16,478,855	0.63	%	43.20	%
Fidelity® VIP – Overseas Portfolio – Service Class R
2007	0.00	%	1,080,792		17.283296		18,679,648	3.16	%	17.23	%
2006	0.00	%	985,990		14.743687		14,537,128	0.62	%	17.95	%
2005	0.00	%	579,174		12.499996		7,239,673	0.00	%	25.00	% 05/02/05

(Continued)

70

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Fidelity® VIP II – Contrafund® Portfolio – Service Class
2007	0.00	%	4,524,124	$	27.094222	$	122,577,620	0.89	%	17.51	%
2006	0.00	%	4,668,602		23.057410		107,645,870	1.12	%	11.59	%
2005	0.00	%	4,501,900		20.662750		93,021,634	0.19	%	16.85	%
2004	0.00	%	4,151,040		17.683622		73,405,422	0.24	%	15.34	%
2003	0.00	%	3,745,714		15.331836		57,428,673	0.30	%	28.35	%
Fidelity® VIP II – Investment Grade Bond Portfolio – Service Class
2007	0.00	%	969,956		11.826500		11,471,185	3.80	%	4.21	%
2006	0.00	%	855,338		11.348586		9,706,877	3.34	%	4.30	%
2005	0.00	%	649,570		10.880732		7,067,797	2.69	%	2.08	%
2004	0.00	%	352,046		10.659014		3,752,463	1.68	%	4.32	%
2003	0.00	%	67,767		10.217718		692,424	0.00	%	2.18	% 05/01/03
Fidelity® VIP III – Growth Opportunities Portfolio – Service Class
2007	0.00	%	876,024		14.053200		12,310,940	0.00	%	23.04	%
2006	0.00	%	1,014,378		11.421365		11,585,581	0.69	%	5.30	%
2005	0.00	%	1,129,706		10.846338		12,253,173	0.84	%	8.86	%
2004	0.00	%	1,211,402		9.963454		12,069,748	0.48	%	7.06	%
2003	0.00	%	1,245,460		9.306474		11,590,841	0.59	%	29.66	%
Fidelity® VIP III – Mid Cap Portfolio – Service Class
2007	0.00	%	1,090,690		27.011367		29,461,028	0.72	%	15.49	%
2006	0.00	%	1,042,192		23.389128		24,375,962	0.23	%	12.59	%
2005	0.00	%	868,756		20.773676		18,047,256	0.00	%	18.20	%
2004	0.00	%	431,128		17.574515		7,576,866	0.00	%	24.77	%
2003	0.00	%	99,682		14.085331		1,404,054	0.00	%	40.85	% 05/01/03
Fidelity® VIP III – Value Strategies Portfolio – Service Class
2007	0.00	%	495,906		16.996302		8,428,568	0.83	%	5.60	%
2006	0.00	%	494,372		16.095011		7,956,923	0.49	%	16.20	%
2005	0.00	%	510,536		13.851491		7,071,685	0.00	%	2.55	%
2004	0.00	%	337,180		13.506506		4,554,124	0.00	%	13.99	%
2003	0.00	%	284,603		11.849148		3,372,303	0.00	%	57.79	%
Fidelity® VIP IV – Energy Portfolio – Service Class 2
2007	0.00	%	621,068		22.953063		14,255,413	0.12	%	45.64	%
2006	0.00	%	488,940		15.759845		7,705,619	0.75	%	16.62	%
2005	0.00	%	243,526		13.514321		3,291,089	0.64	%	35.14	% 05/02/05
Fidelity® VIP IV – Freedom Fund 2010 Portfolio – Service Class
2007	0.00	%	121,944		12.888793		1,571,711	3.28	%	8.65	%
2006	0.00	%	56,804		11.863160		673,875	2.70	%	9.78	%
2005	0.00	%	15,242		10.806063		164,706	0.47	%	8.06	% 05/02/05
Fidelity® VIP IV – Freedom Fund 2020 Portfolio – Service Class
2007	0.00	%	222,540		13.695591		3,047,817	2.67	%	10.17	%
2006	0.00	%	109,012		12.431698		1,355,204	2.11	%	11.81	%
2005	0.00	%	52,700		11.118664		585,954	1.32	%	11.19	% 05/02/05
Fidelity® VIP IV – Freedom Fund 2030 Portfolio – Service Class
2007	0.00	%	136,304		14.256765		1,943,254	2.62	%	11.21	%
2006	0.00	%	54,734		12.819894		701,684	2.16	%	13.15	%
2005	0.00	%	23,432		11.329788		265,480	1.38	%	13.30	% 05/02/05
Franklin Templeton VIP – Developing Markets Securities Fund – Class 3
2007	0.00	%	364,400		21.120230		7,696,212	2.19	%	28.70	%
2006	0.00	%	310,222		16.410826		5,090,999	1.29	%	28.17	%
2005	0.00	%	159,292		12.804274		2,039,618	0.06	%	28.04	% 05/02/05
Franklin Templeton VIP – Foreign Securities Fund – Class 1
2007	0.00	%	131,776		24.554735		3,235,725	2.08	%	15.79	%
2006	0.00	%	174,552		21.206570		3,701,649	1.39	%	21.70	%
2005	0.00	%	228,680		17.425708		3,984,911	1.53	%	10.48	%
2004	0.00	%	261,568		15.773327		4,125,798	1.08	%	18.87	%
2003	0.00	%	92,411		13.269107		1,226,211	0.42	%	32.69	%
Franklin Templeton VIP – Foreign Securities Fund – Class 3
2007	0.00	%	462,356		15.828965		7,318,617	2.11	%	15.45	%
2006	0.00	%	424,646		13.711150		5,822,385	1.34	%	21.46	%
2005	0.00	%	237,992		11.288544		2,686,583	0.34	%	12.89	% 05/02/05

(Continued)

71

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Franklin Templeton VIP – Global Income Securities Fund – Class 3
2007	0.00	%	280,836	$	12.380292	$	3,476,832	2.62	%	11.03	%
2006	0.00	%	138,640		11.150160		1,545,858	2.84	%	12.84	%
2005	0.00	%	53,324		9.881172		526,904	1.81	%	-1.19	% 05/02/05
Franklin Templeton VIP – Income Securities Fund – Class 2
2007	0.00	%	416,188		11.637657		4,843,453	3.54	%	3.76	%
2006	0.00	%	117,590		11.216304		1,318,925	0.07	%	12.16	% 05/01/06
Franklin Templeton VIP – Rising Dividends Securities Fund – Class 1
2007	0.00	%	910,630		16.266644		14,812,894	2.49	%	-2.41	%
2006	0.00	%	943,340		16.669002		15,724,536	1.23	%	17.43	%
2005	0.00	%	840,480		14.195085		11,930,685	1.01	%	3.68	%
2004	0.00	%	635,954		13.690957		8,706,819	0.70	%	11.25	%
2003	0.00	%	220,019		12.306508		2,707,666	0.48	%	23.07	% 05/01/03
Franklin Templeton VIP – Small Cap Value Securities Fund – Class 1
2007	0.00	%	545,164		20.738061		11,305,644	0.89	%	-2.14	%
2006	0.00	%	484,062		21.190555		10,257,542	0.82	%	17.30	%
2005	0.00	%	398,540		18.064784		7,199,539	0.92	%	8.99	%
2004	0.00	%	237,384		16.575156		3,934,677	0.23	%	24.09	%
2003	0.00	%	47,449		13.357313		633,791	0.00	%	33.57	% 05/01/03
Gartmore GVIT – Small Cap Growth Fund: Class I – Intial Funding by Depositor
2006	0.00	%	807,056		17.366191		14,015,489	0.00	%	3.21	%
2005	0.00	%	925,228		16.826475		15,568,326	0.00	%	8.09	%
2004	0.00	%	936,378		15.567128		14,576,716	0.00	%	13.42	%
2003	0.00	%	890,100		13.725736		12,217,278	0.00	%	34.26	%
Janus Aspen Series – Balanced Portfolio – Service Shares
2007	0.00	%	103,442		16.221536		1,677,988	2.47	%	10.29	%
2006	0.00	%	116,884		14.708447		1,719,182	1.99	%	10.41	%
2005	0.00	%	93,760		13.321108		1,248,987	2.04	%	7.66	%
2004	0.00	%	90,538		12.373264		1,120,251	2.45	%	8.29	%
2003	0.00	%	60,397		11.425728		690,080	2.34	%	13.72	%
Janus Aspen Series – Forty Portfolio – Service Shares
2007	0.00	%	2,924,576		12.883520		37,678,833	0.19	%	36.63	%
2006	0.00	%	2,885,418		9.429195		27,207,169	0.14	%	9.12	%
2005	0.00	%	3,170,060		8.641403		27,393,766	0.01	%	12.56	%
2004	0.00	%	3,379,686		7.677436		25,947,323	0.02	%	17.97	%
2003	0.00	%	3,484,342		6.508092		22,676,418	0.25	%	20.23	%
Janus Aspen Series – Global Technology Portfolio – Service Shares
2007	0.00	%	2,554,744		5.255324		13,426,007	0.34	%	21.70	%
2006	0.00	%	2,894,560		4.318333		12,499,674	0.00	%	7.83	%
2005	0.00	%	3,135,014		4.004823		12,555,176	0.00	%	11.55	%
2004	0.00	%	3,258,384		3.590186		11,698,205	0.00	%	0.57	%
2003	0.00	%	3,237,773		3.569969		11,558,749	0.00	%	46.47	%
Janus Aspen Series – INTECH Risk-Managed Core Portfolio – Service Shares
2007	0.00	%	26,988		18.842190		508,513	0.49	%	6.13	%
2006	0.00	%	30,204		17.753498		536,227	0.11	%	10.77	%
2005	0.00	%	31,826		16.027544		510,093	1.33	%	10.91	%
2004	0.00	%	23,542		14.450740		340,199	2.52	%	17.46	%
2003	0.00	%	3,278		12.302260		40,327	0.30	%	23.02	% 05/01/03
Janus Aspen Series – International Growth Portfolio – Service II Shares
2007	0.00	%	1,653,148		14.893765		24,621,598	0.49	%	28.07	%
2006	0.00	%	754,850		11.629148		8,778,262	1.78	%	16.29	% 05/01/06
Janus Aspen Series – International Growth Portfolio – Service Shares
2007	0.00	%	2,005,464		18.599320		37,300,267	0.44	%	28.02	%
2006	0.00	%	2,503,690		14.528655		36,375,248	1.89	%	46.63	%
2005	0.00	%	2,831,486		9.908475		28,055,708	1.05	%	31.94	%
2004	0.00	%	3,009,298		7.509901		22,599,530	0.85	%	18.69	%
2003	0.00	%	3,013,609		6.327527		19,068,692	1.02	%	34.53	%

(Continued)

72

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Lehman Brothers AMT Short Duration Bond Portfolio – I Class
2007	0.00	%	757,962	$	11.273070	$	8,544,559	2.69	%	4.77	%
2006	0.00	%	903,048		10.759706		9,716,531	3.07	%	4.20	%
2005	0.00	%	748,972		10.325859		7,733,779	3.97	%	1.44	%
2004	0.00	%	335,648		10.178954		3,416,546	4.28	%	0.78	%
2003	0.00	%	116,918		10.100257		1,180,902	12.48	%	1.00	% 05/01/03
MFS VIT – Investors Growth Stock Series – Initial Class
2007	0.00	%	289,412		15.850552		4,587,340	0.33	%	11.36	%
2006	0.00	%	314,824		14.233850		4,481,158	0.00	%	7.58	%
2005	0.00	%	291,396		13.231476		3,855,599	0.34	%	4.49	%
2004	0.00	%	214,290		12.663111		2,713,578	0.00	%	9.18	%
2003	0.00	%	38,925		11.597867		451,447	0.00	%	15.98	% 05/01/03
MFS VIT – Value Series – Initial Class
2007	0.00	%	348,380		19.812092		6,902,137	0.87	%	7.91	%
2006	0.00	%	200,260		18.360218		3,676,817	0.97	%	20.84	%
2005	0.00	%	118,172		15.193770		1,795,478	0.73	%	6.66	%
2004	0.00	%	72,218		14.245099		1,028,753	0.45	%	15.18	%
2003	0.00	%	21,683		12.367820		268,171	0.00	%	23.68	% 05/01/03
Nationwide GVIT Strategic Value Fund – Class I
2003	0.00	%	99,848		10.495857		1,047,990	0.04	%	38.81	%
Nationwide VIT – American Funds Asset Allocation Fund – Class II
2007	0.00	%	340,142		11.205324		3,811,401	2.43	%	6.14	%
2006	0.00	%	166,024		10.556998		1,752,715	3.37	%	5.57	% 05/01/06
Nationwide VIT – American Funds Bond Fund – Class II
2007	0.00	%	223,108		10.853118		2,421,417	8.46	%	2.98	%
2006	0.00	%	70,612		10.538858		744,170	0.90	%	5.39	% 05/01/06
Nationwide VIT – American Funds Global Growth Fund – Class II
2007	0.00	%	451,322		12.399481		5,596,159	2.98	%	14.36	%
2006	0.00	%	150,826		10.842096		1,635,270	0.23	%	8.42	% 05/01/06
Nationwide VIT – American Funds Growth – Income Fund – Class II
2007	0.00	%	94,768		9.892316		937,475	2.46	%	-1.08	% 05/01/07
Nationwide VIT – American Funds Growth Fund – Class II
2007	0.00	%	610,966		11.597638		7,085,762	0.75	%	11.90	%
2006	0.00	%	168,526		10.364424		1,746,675	1.12	%	3.64	% 05/01/06
Nationwide VIT – Federated High Income Bond Fund – Class I
2007	0.00	%	650,262		16.935434		11,012,469	7.29	%	3.13	%
2006	0.00	%	882,542		16.420739		14,491,992	7.41	%	10.60	%
2005	0.00	%	1,047,212		14.846585		15,547,522	6.92	%	2.38	%
2004	0.00	%	1,351,330		14.501407		19,596,186	7.58	%	10.10	%
2003	0.00	%	1,164,352		13.171585		15,336,361	7.99	%	22.27	%
Nationwide VIT – Federated High Income Bond Fund – Class III
2007	0.00	%	1,316,814		12.027193		15,837,576	7.98	%	3.17	%
2006	0.00	%	701,700		11.657910		8,180,355	7.85	%	10.60	%
2005	0.00	%	429,384		10.540776		4,526,041	6.02	%	5.41	% 05/02/05
Nationwide VIT – Gartmore Emerging Markets Fund – Class I
2007	0.00	%	204,784		36.889137		7,554,305	0.71	%	45.58	%
2006	0.00	%	270,924		25.339713		6,865,136	0.71	%	36.72	%
2005	0.00	%	369,062		18.534273		6,840,296	0.60	%	32.64	%
2004	0.00	%	466,980		13.973799		6,525,485	1.04	%	20.74	%
2003	0.00	%	343,512		11.573140		3,975,512	0.61	%	65.26	%
Nationwide VIT – Gartmore Emerging Markets Fund – Class III
2007	0.00	%	938,196		26.524857		24,885,515	0.72	%	45.55	%
2006	0.00	%	714,108		18.224168		13,014,024	0.72	%	36.64	%
2005	0.00	%	462,520		13.336908		6,168,587	0.20	%	33.37	% 05/02/05

(Continued)

73

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Nationwide VIT – Gartmore Global Utilities Fund – Class I
2007	0.00	%	177,796	$	24.676248	$	4,387,338	2.57	%	20.43	%
2006	0.00	%	178,132		20.489395		3,649,817	2.84	%	37.56	%
2005	0.00	%	118,088		14.894755		1,758,892	2.09	%	6.39	%
2004	0.00	%	134,138		14.000446		1,877,992	1.64	%	29.97	%
2003	0.00	%	50,633		10.772327		545,435	1.02	%	24.05	%
Nationwide VIT – Gartmore International Growth Fund – Class I
2007	0.00	%	522,056		17.076402		8,914,838	0.38	%	27.15	%
2006	0.00	%	554,752		13.430598		7,450,651	0.84	%	32.96	%
2005	0.00	%	203,318		10.100861		2,053,687	1.10	%	30.21	%
2004	0.00	%	125,904		7.757434		976,692	0.85	%	14.19	%
2003	0.00	%	195,693		6.793220		1,329,386	0.00	%	35.62	%
Nationwide VIT – Gartmore Worldwide Leaders Fund – Class I
2007	0.00	%	250,388		22.048358		5,520,644	0.41	%	19.90	%
2006	0.00	%	249,376		18.389109		4,585,802	0.85	%	25.88	%
2005	0.00	%	262,448		14.608344		3,833,931	1.11	%	19.34	%
2004	0.00	%	281,954		12.241206		3,451,457	0.00	%	15.67	%
2003	0.00	%	280,311		10.583316		2,966,620	0.00	%	36.06	%
Nationwide VIT – Global Financial Services Fund – Class I
2007	0.00	%	93,918		19.621675		1,842,828	3.45	%	-1.05	%
2006	0.00	%	113,986		19.830405		2,260,389	1.89	%	20.32	%
2005	0.00	%	105,354		16.481268		1,736,368	2.00	%	11.15	%
2004	0.00	%	121,742		14.827817		1,805,168	1.37	%	20.99	%
2003	0.00	%	137,222		12.255125		1,681,673	1.08	%	41.45	%
Nationwide VIT – Global Health Sciences Fund – Class I
2007	0.00	%	101,446		15.497697		1,572,179	0.07	%	13.16	%
2006	0.00	%	124,614		13.695316		1,706,628	0.00	%	2.71	%
2005	0.00	%	194,488		13.334230		2,593,348	0.00	%	8.44	%
2004	0.00	%	256,666		12.296466		3,156,085	0.00	%	7.86	%
2003	0.00	%	170,154		11.400451		1,939,832	0.00	%	36.69	%
Nationwide VIT – Global Health Sciences Fund – Class III
2007	0.00	%	210,752		12.491648		2,632,640	0.07	%	13.23	%
2006	0.00	%	212,658		11.032385		2,346,125	0.00	%	2.70	%
2005	0.00	%	128,282		10.742057		1,378,013	0.00	%	7.42	% 05/02/05
Nationwide VIT – Global Technology and Communications Fund – Class I
2007	0.00	%	400,856		4.241547		1,700,250	0.00	%	20.09	%
2006	0.00	%	515,480		3.531877		1,820,612	0.00	%	11.17	%
2005	0.00	%	740,614		3.177040		2,352,960	0.00	%	-0.52	%
2004	0.00	%	1,025,772		3.193545		3,275,849	0.00	%	4.31	%
2003	0.00	%	1,041,511		3.061527		3,188,614	0.00	%	55.23	%
Nationwide VIT – Global Technology and Communications Fund – Class III
2007	0.00	%	249,550		16.444438		4,103,710	0.00	%	20.19	%
2006	0.00	%	136,014		13.682536		1,861,016	0.00	%	11.08	%
2005	0.00	%	89,142		12.317458		1,098,003	0.00	%	23.17	% 05/02/05
Nationwide VIT – Government Bond Fund – Class I
2007	0.00	%	2,247,294		17.159530		38,562,509	4.48	%	7.16	%
2006	0.00	%	2,428,156		16.013288		38,882,761	3.95	%	3.34	%
2005	0.00	%	3,195,842		15.495567		49,521,384	3.71	%	3.26	%
2004	0.00	%	3,187,198		15.005858		47,826,641	5.38	%	3.26	%
2003	0.00	%	3,340,824		14.531815		48,548,236	3.25	%	2.00	%
Nationwide VIT – Growth Fund – Class I
2007	0.00	%	1,726,074		9.897441		17,083,716	0.18	%	19.54	%
2006	0.00	%	1,876,832		8.279324		15,538,900	0.05	%	6.17	%
2005	0.00	%	1,986,938		7.798327		15,494,792	0.08	%	6.50	%
2004	0.00	%	2,009,968		7.322345		14,717,679	0.34	%	8.16	%
2003	0.00	%	2,002,653		6.770126		13,558,213	0.02	%	32.74	%
Nationwide VIT – International Index Fund – Class VI
2007	0.00	%	53,368		12.017667		641,359	1.67	%	9.50	%
2006	0.00	%	20,334		10.975279		223,171	1.50	%	9.75	% 05/01/06

(Continued)

74

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Nationwide VIT – International Value Fund – Class I
2007	0.00	%	93,770	$	23.734976	$	2,225,629	2.02	%	2.92	%
2006	0.00	%	134,862		23.062454		3,110,249	2.07	%	22.67	%
2005	0.00	%	175,520		18.800450		3,299,855	1.31	%	12.09	%
2004	0.00	%	281,276		16.772215		4,717,622	1.91	%	20.29	%
2003	0.00	%	23,901		13.838062		330,744	0.00	%	38.38	% 05/01/03
Nationwide VIT – International Value Fund – Class III
2007	0.00	%	665,320		14.468946		9,626,479	2.15	%	2.93	%
2006	0.00	%	575,980		14.056822		8,096,448	2.01	%	22.75	%
2005	0.00	%	402,348		11.451970		4,607,677	0.95	%	14.52	% 05/02/05
Nationwide VIT – Investor Destinations Aggressive Fund – Class II
2007	0.00	%	1,376,510		16.743624		23,047,766	2.03	%	5.96	%
2006	0.00	%	1,105,550		15.802084		17,469,994	2.11	%	16.87	%
2005	0.00	%	1,044,556		13.521320		14,123,776	2.02	%	7.93	%
2004	0.00	%	937,068		12.527746		11,739,350	1.85	%	14.03	%
2003	0.00	%	539,178		10.986753		5,923,816	1.57	%	31.87	%
Nationwide VIT – Investor Destinations Conservative Fund – Class II
2007	0.00	%	621,536		13.117367		8,152,916	3.54	%	5.38	%
2006	0.00	%	628,508		12.447546		7,823,382	3.23	%	6.16	%
2005	0.00	%	706,430		11.724859		8,282,792	2.49	%	3.31	%
2004	0.00	%	593,680		11.349571		6,738,013	2.49	%	4.65	%
2003	0.00	%	430,237		10.845040		4,665,937	2.59	%	7.91	%
Nationwide VIT – Investor Destinations Moderate Fund – Class II
2007	0.00	%	3,877,166		14.896957		57,757,975	2.71	%	5.66	%
2006	0.00	%	3,554,252		14.099052		50,111,584	2.47	%	11.35	%
2005	0.00	%	3,150,642		12.661618		39,892,225	2.39	%	5.34	%
2004	0.00	%	2,369,740		12.019313		28,482,647	2.21	%	9.54	%
2003	0.00	%	1,419,724		10.972970		15,578,589	2.05	%	20.05	%
Nationwide VIT – Investor Destinations Moderately Aggressive Fund – Class II
2007	0.00	%	4,655,618		16.055259		74,747,153	2.31	%	6.15	%
2006	0.00	%	4,071,170		15.125018		61,576,520	2.25	%	14.54	%
2005	0.00	%	3,665,284		13.204972		48,399,973	2.19	%	7.07	%
2004	0.00	%	2,664,904		12.332826		32,865,797	2.01	%	12.09	%
2003	0.00	%	1,386,608		11.002361		15,255,962	1.61	%	26.64	%
Nationwide VIT – Investor Destinations Moderately Conservative Fund – Class II
2007	0.00	%	1,091,298		14.088774		15,375,051	3.18	%	5.86	%
2006	0.00	%	1,022,586		13.308971		13,609,567	2.84	%	8.42	%
2005	0.00	%	996,854		12.275099		12,236,482	2.78	%	4.49	%
2004	0.00	%	934,806		11.748118		10,982,211	2.38	%	7.16	%
2003	0.00	%	794,151		10.963279		8,706,499	2.33	%	13.70	%
Nationwide VIT – J.P. Morgan Balanced Fund – Class I
2007	0.00	%	856,726		14.194595		12,160,879	2.16	%	4.63	%
2006	0.00	%	919,452		13.567085		12,474,283	2.25	%	12.25	%
2005	0.00	%	1,170,652		12.086643		14,149,253	1.98	%	2.54	%
2004	0.00	%	1,256,734		11.786975		14,813,092	1.94	%	8.49	%
2003	0.00	%	1,222,571		10.864458		13,282,571	1.76	%	18.41	%
Nationwide VIT – Mid Cap Growth Fund – Class I
2007	0.00	%	898,950		16.713321		15,024,440	0.00	%	9.01	%
2006	0.00	%	961,292		15.331247		14,737,805	0.00	%	9.91	%
2005	0.00	%	989,192		13.949172		13,798,409	0.00	%	9.74	%
2004	0.00	%	1,022,504		12.710961		12,997,008	0.00	%	15.34	%
2003	0.00	%	1,048,110		11.020618		11,550,820	0.00	%	40.13	%
Nationwide VIT – Mid Cap Index Fund – Class I
2007	0.00	%	1,320,468		26.643107		35,181,370	1.35	%	7.56	%
2006	0.00	%	1,451,458		24.770554		35,953,419	1.14	%	9.89	%
2005	0.00	%	1,705,870		22.541352		38,452,616	1.04	%	12.10	%
2004	0.00	%	1,662,184		20.108596		33,424,187	0.56	%	15.73	%
2003	0.00	%	1,562,296		17.375180		27,145,174	0.50	%	34.65	%

(Continued)

75

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Nationwide VIT – Money Market Fund – Class I
2007	0.00	%	8,018,358	$	13.999702	$	112,254,623	4.65	%	4.79	%
2006	0.00	%	7,870,664		13.359424		105,147,538	4.43	%	4.53	%
2005	0.00	%	8,487,334		12.780436		108,471,829	2.61	%	2.67	%
2004	0.00	%	9,274,680		12.448310		115,454,092	0.80	%	0.81	%
2003	0.00	%	10,900,245		12.348118		134,597,511	0.63	%	0.63	%
Nationwide VIT – Multi-Manager Small Cap Growth Fund – Class I
2007	0.00	%	711,702		19.059414		13,564,623	0.00	%	9.75	%
Nationwide VIT – Multi-Manager Small Cap Value Fund – Class I
2007	0.00	%	1,454,620		26.664377		38,786,536	1.13	%	-6.89	%
2006	0.00	%	1,678,046		28.638579		48,056,853	0.43	%	17.29	%
2005	0.00	%	1,914,388		24.416176		46,742,034	0.07	%	3.07	%
2004	0.00	%	2,111,792		23.688343		50,024,853	0.00	%	17.30	%
2003	0.00	%	2,161,994		20.194975		43,661,415	0.00	%	56.85	%
Nationwide VIT – Multi-Manager Small Company Fund – Class I
2007	0.00	%	1,568,836		26.356127		41,348,441	0.09	%	2.13	%
2006	0.00	%	1,691,018		25.805828		43,638,120	0.10	%	12.04	%
2005	0.00	%	1,752,846		23.033016		40,373,330	0.00	%	12.32	%
2004	0.00	%	1,765,320		20.507271		36,201,896	0.00	%	19.02	%
2003	0.00	%	1,696,669		17.229813		29,233,290	0.00	%	41.01	%
Nationwide VIT – Nationwide Fund – Class I
2007	0.00	%	2,766,768		16.648158		46,061,591	1.03	%	8.18	%
2006	0.00	%	2,948,242		15.389126		45,370,868	1.09	%	13.63	%
2005	0.00	%	3,161,412		13.543467		42,816,479	1.00	%	7.44	%
2004	0.00	%	3,312,776		12.605461		41,759,069	1.30	%	9.75	%
2003	0.00	%	3,352,137		11.485510		38,501,003	0.59	%	27.51	%
Nationwide VIT – Nationwide Leaders Fund – Class I
2007	0.00	%	89,306		17.979434		1,605,671	1.24	%	11.56	%
2006	0.00	%	85,138		16.116355		1,372,114	0.70	%	16.05	%
2005	0.00	%	40,072		13.887943		556,518	1.29	%	10.31	%
2004	0.00	%	24,720		12.589767		311,219	0.48	%	18.79	%
2003	0.00	%	21,594		10.598061		228,855	0.15	%	25.38	%
Nationwide VIT – U.S. Growth Leaders Fund – Class I
2007	0.00	%	231,876		19.237188		4,460,642	0.00	%	22.49	%
2006	0.00	%	250,268		15.705651		3,930,622	0.27	%	-0.29	%
2005	0.00	%	279,900		15.751023		4,408,711	0.00	%	11.96	%
2004	0.00	%	184,294		14.068165		2,592,678	0.00	%	12.41	%
2003	0.00	%	242,970		12.515174		3,040,812	0.00	%	52.14	%
Nationwide VIT – Van Kampen Comstock Value Fund – Class I
2007	0.00	%	883,520		14.630092		12,925,979	1.74	%	-2.22	%
2006	0.00	%	875,334		14.961750		13,096,528	1.73	%	15.91	%
2005	0.00	%	825,902		12.908610		10,661,247	1.61	%	4.25	%
2004	0.00	%	665,190		12.382749		8,236,881	1.39	%	17.50	%
2003	0.00	%	432,461		10.538646		4,557,553	1.34	%	31.43	%
Nationwide VIT – Van Kampen Multi Sector Bond Fund – Class I
2007	0.00	%	697,366		16.461000		11,479,342	4.18	%	4.62	%
2006	0.00	%	657,636		15.733416		10,346,861	4.07	%	4.84	%
2005	0.00	%	636,228		15.007380		9,548,115	3.99	%	2.18	%
2004	0.00	%	588,866		14.687199		8,648,792	4.55	%	6.53	%
2003	0.00	%	589,360		13.786437		8,125,175	5.42	%	12.12	%
Neuberger Berman AMT – Fasciano Portfolio – S Class Shares
2007	0.00	%	70,284		15.339463		1,078,119	0.00	%	0.52	%
2006	0.00	%	54,558		15.260818		832,600	0.00	%	5.25	%
2005	0.00	%	69,514		14.499238		1,007,900	0.00	%	2.90	%
2004	0.00	%	57,292		14.091031		807,303	0.00	%	11.88	%
2003	0.00	%	26,989		12.595173		339,931	0.00	%	25.06	%

(Continued)

76

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Neuberger Berman AMT – Guardian Portfolio – I Class Shares
2007	0.00	%	434,652	$	22.326685	$	9,704,338	0.26	%	7.39	%
2006	0.00	%	477,638		20.790721		9,930,438	0.70	%	13.38	%
2005	0.00	%	509,104		18.337744		9,335,819	0.15	%	8.39	%
2004	0.00	%	572,382		16.918157		9,683,649	0.12	%	15.81	%
2003	0.00	%	601,395		14.608014		8,785,187	0.89	%	31.76	%
Neuberger Berman AMT – International Portfolio – Class S
2007	0.00	%	280,340		14.972222		4,197,313	1.87	%	3.21	%
2006	0.00	%	140,884		14.506093		2,043,676	0.29	%	23.45	%
2005	0.00	%	53,950		11.750261		633,927	0.26	%	17.50	% 05/02/05
Neuberger Berman AMT – Mid-Cap Growth Portfolio – I Class Shares
2007	0.00	%	1,375,816		25.147074		34,597,747	0.00	%	22.53	%
2006	0.00	%	1,474,382		20.523539		30,259,536	0.00	%	14.69	%
2005	0.00	%	1,544,990		17.894121		27,646,238	0.00	%	13.74	%
2004	0.00	%	1,604,468		15.732356		25,242,062	0.00	%	16.31	%
2003	0.00	%	1,575,959		13.526477		21,317,173	0.00	%	28.07	%
Neuberger Berman AMT – Partners Portfolio – Class I
2007	0.00	%	902,352		19.337705		17,449,417	0.62	%	9.34	%
2006	0.00	%	967,144		17.686426		17,105,321	0.68	%	12.24	%
2005	0.00	%	1,054,060		15.757590		16,609,445	0.98	%	18.04	%
2004	0.00	%	902,952		13.348803		12,053,328	0.01	%	18.98	%
2003	0.00	%	883,657		11.219837		9,914,488	0.00	%	35.09	%
Neuberger Berman AMT – Regency Portfolio – Class S
2007	0.00	%	94,148		13.332382		1,255,217	0.47	%	3.05	%
2006	0.00	%	62,360		12.937253		806,767	0.48	%	10.94	%
2005	0.00	%	23,100		11.661977		269,392	0.00	%	16.62	% 05/02/05
Neuberger Berman AMT – Socially Responsive Portfolio Class I
2007	0.00	%	254,068		18.328379		4,656,655	0.09	%	7.61	%
2006	0.00	%	160,134		17.031699		2,727,354	0.16	%	13.70	%
2005	0.00	%	104,292		14.979202		1,562,211	0.00	%	6.86	%
2004	0.00	%	42,274		14.018027		592,598	0.00	%	13.28	%
2003	0.00	%	10,340		12.374746		127,955	0.00	%	23.75	% 05/01/03
Oppenheimer VAF – Capital Appreciation Fund – Non-Service Shares
2007	0.00	%	2,560,294		20.320760		52,027,120	0.22	%	14.15	%
2006	0.00	%	2,846,436		17.801944		50,672,094	0.38	%	7.95	%
2005	0.00	%	2,994,184		16.491164		49,377,579	0.91	%	5.10	%
2004	0.00	%	3,086,788		15.691176		48,435,334	0.31	%	6.94	%
2003	0.00	%	2,916,468		14.673413		42,794,539	0.38	%	30.94	%
Oppenheimer VAF – Global Securities Fund – Class 3
2007	0.00	%	1,378,496		15.092302		20,804,678	1.24	%	6.34	%
2006	0.00	%	1,194,348		14.192798		16,951,140	0.84	%	17.69	%
2005	0.00	%	723,136		12.059670		8,720,782	0.00	%	20.60	% 05/02/05
Oppenheimer VAF – Global Securities Fund – Non-Service Shares
2007	0.00	%	1,244,300		16.025167		19,940,115	1.33	%	6.32	%
2006	0.00	%	1,579,632		15.072696		23,809,313	1.07	%	17.69	%
2005	0.00	%	2,017,894		12.806945		25,843,057	1.00	%	14.31	%
2004	0.00	%	2,460,964		11.203969		27,572,564	1.15	%	19.16	%
2003	0.00	%	1,978,401		9.402230		18,601,381	0.73	%	43.02	%
Oppenheimer VAF – High Income Fund – Class 3
2007	0.00	%	97,144		9.661022		938,510	0.00	%	-3.39	% 05/01/07
Oppenheimer VAF – High Income Fund – Non-Service Shares
2007	0.00	%	197,334		13.627157		2,689,101	7.57	%	-0.10	%
2006	0.00	%	324,172		13.641009		4,422,033	6.62	%	9.42	%
2005	0.00	%	304,496		12.466334		3,795,949	6.30	%	2.31	%
2004	0.00	%	260,866		12.184423		3,178,502	4.03	%	8.97	%
2003	0.00	%	137,738		11.181817		1,540,161	0.00	%	11.82	% 05/01/03

(Continued)

77

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Oppenheimer VAF – Main Street Small Cap Fund® – Non-Service Shares
2007	0.00	%	264,706	$	20.683895	$	5,475,151	0.29	%	-1.21	%
2006	0.00	%	215,614		20.937110		4,514,334	0.13	%	15.00	%
2005	0.00	%	146,346		18.206560		2,664,457	0.00	%	9.92	%
2004	0.00	%	111,964		16.563464		1,854,512	0.00	%	19.42	%
2003	0.00	%	81,527		13.869971		1,130,777	0.00	%	38.70	% 05/01/03
Oppenheimer VAF – Main Street® – Non-Service Shares
2007	0.00	%	2,359,688		14.973285		35,332,281	1.00	%	4.42	%
2006	0.00	%	2,564,464		14.338943		36,771,703	1.10	%	15.02	%
2005	0.00	%	2,675,742		12.465965		33,355,706	1.37	%	5.98	%
2004	0.00	%	2,802,124		11.763032		32,961,474	0.83	%	9.46	%
2003	0.00	%	2,733,213		10.746526		29,372,545	0.90	%	26.72	%
Oppenheimer VAF – Mid Cap Fund – Non-Service Shares
2007	0.00	%	1,618,182		16.811588		27,204,209	0.00	%	6.33	%
2006	0.00	%	1,834,314		15.810416		29,001,267	0.00	%	2.96	%
2005	0.00	%	2,021,976		15.356470		31,050,414	0.00	%	12.33	%
2004	0.00	%	2,473,214		13.671269		33,811,974	0.00	%	19.78	%
2003	0.00	%	2,289,693		11.413972		26,134,492	0.00	%	25.59	%
Putnam VT – Growth and Income Fund – IB Shares
2007	0.00	%	65,188		15.822165		1,031,415	1.43	%	-6.04	%
2006	0.00	%	79,204		16.838971		1,333,714	1.47	%	15.91	%
2005	0.00	%	79,162		14.527575		1,150,032	1.49	%	5.23	%
2004	0.00	%	69,826		13.805820		964,005	1.11	%	11.11	%
2003	0.00	%	21,892		12.425216		272,013	0.00	%	24.25	% 05/01/03
Putnam VT – International Equity Fund – IB Shares
2007	0.00	%	132,680		23.093467		3,064,041	2.23	%	8.37	%
2006	0.00	%	227,790		21.310423		4,854,301	0.36	%	27.72	%
2005	0.00	%	138,276		16.685441		2,307,196	1.32	%	12.20	%
2004	0.00	%	107,542		14.871493		1,599,310	1.30	%	16.19	%
2003	0.00	%	58,343		12.798803		746,721	0.00	%	27.99	% 05/01/03
Putnam VT – Voyager Fund – IB Shares
2007	0.00	%	29,740		14.640393		435,405	0.00	%	5.52	%
2006	0.00	%	28,784		13.874456		399,362	0.11	%	5.44	%
2005	0.00	%	27,308		13.159164		359,350	0.59	%	5.69	%
2004	0.00	%	26,864		12.450430		334,468	0.20	%	5.03	%
2003	0.00	%	11,366		11.853879		134,731	0.00	%	18.54	% 05/01/03
T. Rowe Price Blue Chip Growth Portfolio – II
2007	0.00	%	212,892		13.915435		2,962,485	0.11	%	12.49	%
2006	0.00	%	117,044		12.370493		1,447,892	0.34	%	9.33	%
2005	0.00	%	33,050		11.314946		373,959	0.16	%	13.15	% 05/02/05
T. Rowe Price Equity Income Portfolio – II
2007	0.00	%	342,686		18.422059		6,312,982	1.51	%	3.03	%
2006	0.00	%	232,318		17.880327		4,153,922	1.35	%	18.65	%
2005	0.00	%	69,938		15.070153		1,053,976	1.39	%	3.69	%
T. Rowe Price Limited Term Bond Portfolio – Class II
2007	0.00	%	97,460		11.086232		1,080,464	4.06	%	5.23	%
2006	0.00	%	51,598		10.535464		543,609	3.73	%	4.03	%
2005	0.00	%	19,896		10.127763		201,502	2.09	%	1.28	% 05/02/05
The Dreyfus Socially Responsible Growth Fund, Inc. – Initial Shares
2007	0.00	%	990,572		13.444500		13,317,745	0.54	%	7.79	%
2006	0.00	%	1,115,238		12.473391		13,910,800	0.11	%	9.20	%
2005	0.00	%	1,203,742		11.422458		13,749,692	0.00	%	3.62	%
2004	0.00	%	1,320,272		11.023895		14,554,540	0.40	%	6.21	%
2003	0.00	%	1,330,170		10.379305		13,806,240	0.11	%	26.00	%
Turner GVIT Growth Focus Fund – Class I
2003	0.00	%	215,089		3.336873		717,725	0.00	%	50.96	%

(Continued)

78

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Van Eck Worldwide Insurance Trust – Emerging Markets Fund – Initial Class
2007	0.00	%	517,190	$	35.963363	$	18,599,892	0.40	%	37.61	%
2006	0.00	%	565,466		26.133423		14,777,562	0.56	%	39.49	%
2005	0.00	%	573,050		18.734825		10,735,991	0.71	%	32.00	%
2004	0.00	%	535,204		14.193509		7,596,423	0.53	%	25.89	%
2003	0.00	%	596,383		11.274461		6,723,897	0.11	%	54.19	%
Van Eck Worldwide Insurance Trust – Hard Assets Fund – Initial Class
2007	0.00	%	416,768		39.972562		16,659,285	0.11	%	45.36	%
2006	0.00	%	487,264		27.499610		13,399,570	0.06	%	24.49	%
2005	0.00	%	509,766		22.089482		11,260,467	0.31	%	51.67	%
2004	0.00	%	392,894		14.564221		5,722,195	0.31	%	24.23	%
2003	0.00	%	345,678		11.747435		4,060,830	0.41	%	45.08	%
Van Kampen UIF – Core Plus Fixed Income Portfolio – Class I
2007	0.00	%	281,694		12.175696		3,429,821	3.71	%	5.45	%
2006	0.00	%	190,806		11.546094		2,203,064	4.06	%	3.73	%
2005	0.00	%	126,012		11.130805		1,402,615	3.73	%	4.21	%
2004	0.00	%	50,918		10.680729		543,841	3.92	%	4.37	%
2003	0.00	%	12,470		10.233765		127,615	0.05	%	2.34	% 05/01/03
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I
2007	0.00	%	244,604		23.144388		5,661,210	7.13	%	6.53	%
2006	0.00	%	296,826		21.725302		6,448,634	10.28	%	10.81	%
2005	0.00	%	306,254		19.606425		6,004,546	7.14	%	12.25	%
2004	0.00	%	310,368		17.466655		5,421,091	7.52	%	10.06	%
2003	0.00	%	310,596		15.869838		4,929,108	0.00	%	27.86	%
Van Kampen UIF – Mid Cap Growth Portfolio – class I
2007	0.00	%	283,210		11.486951		3,253,219	0.00	%	22.67	%
2006	0.00	%	282,660		9.364438		2,646,952	0.00	%	9.27	%
2005	0.00	%	300,668		8.569610		2,576,607	0.00	%	17.57	%
2004	0.00	%	328,124		7.289089		2,391,725	0.00	%	21.60	%
2003	0.00	%	308,361		5.994500		1,848,470	0.00	%	41.76	%
Van Kampen UIF – U.S. Real Estate Portfolio – Class I
2007	0.00	%	1,115,184		29.952335		33,402,365	1.11	%	-17.07	%
2006	0.00	%	1,384,756		36.117848		50,014,407	1.07	%	38.04	%
2005	0.00	%	1,409,392		26.163932		36,875,236	1.19	%	17.05	%
2004	0.00	%	1,415,482		22.352530		31,639,604	1.61	%	36.39	%
2003	0.00	%	1,225,582		16.388129		20,084,996	0.00	%	37.51	%
Wells Fargo AVT – Opportunity FundSM
2007	0.00	%	1,129,684		14.553953		16,441,368	0.61	%	6.63	%
2006	0.00	%	1,303,766		13.648563		17,794,532	0.00	%	12.22	%
2005	0.00	%	1,428,994		12.162469		17,380,095	0.00	%	7.88	%
2004	0.00	%	1,509,654		11.273634		17,019,287	0.00	%	18.22	%
2003	0.00	%	1,535,336		9.536128		14,641,161	0.08	%	37.01	%
The BEST of AMERICA® America’s FUTURE Life SeriesSM
Reduced Fee Tier (0.10%)
AIM VIF – Basic Value Fund – Series I
2007	0.10	%	14,780		17.678080		261,282	0.59	%	1.44	%
2006	0.10	%	1,258		17.426798		21,923	0.42	%	13.09	%
2005	0.10	%	174		15.409499		2,681	0.09	%	5.63	%
2004	0.10	%	27,138		14.588087		395,892	0.00	%	10.96	%
2003	0.10	%	173		13.147350		2,274	0.06	%	33.49	%
AIM VIF – Capital Appreciation Fund – Series I
2003	0.10	%	1,045		13.277382		13,875	0.00	%	35.22	%
AIM VIF – Capital Development Fund – Series I
2007	0.10	%	113,300		21.622263		2,449,802	0.00	%	10.73	%
2006	0.10	%	100,288		19.526450		1,958,269	0.00	%	16.40	%
2005	0.10	%	29,388		16.774744		492,976	0.00	%	9.50	%
2004	0.10	%	12,220		15.320003		187,210	0.00	%	15.38	%
AIM VIF – International Growth Fund – Series I
2007	0.10	%	183,632		20.636261		3,789,478	0.53	%	14.60	%

(Continued)

79

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
AllianceBernstein VPS – Growth and Income Portfolio – Class A
2007	0.10	%	63,136	$	19.039121	$	1,202,054	1.44	%	5.01	%
2006	0.10	%	3,554		18.130310		64,435	1.37	%	17.17	%
2005	0.10	%	84,426		15.473584		1,306,373	1.48	%	4.76	%
2004	0.10	%	13,180		14.770235		194,672	0.92	%	11.35	%
2003	0.10	%	8,268		13.264628		109,672	0.51	%	32.37	%
American Century VP – Income & Growth Fund – Class I
2007	0.10	%	113,024		13.505398		1,526,434	1.91	%	-0.17	%
2006	0.10	%	23,772		13.528072		321,589	1.85	%	16.97	%
2005	0.10	%	27,068		11.565387		313,052	1.94	%	4.53	%
2004	0.10	%	39,010		11.064552		431,628	1.37	%	12.88	%
2003	0.10	%	44,282		9.802103		434,057	1.28	%	29.22	%
American Century VP – International Fund – Class I
2007	0.10	%	655,660		17.801907		11,671,998	0.70	%	17.94	%
2006	0.10	%	620,316		15.094317		9,363,246	1.58	%	24.90	%
2005	0.10	%	645,460		12.085047		7,800,414	1.25	%	13.14	%
2004	0.10	%	881,348		10.681395		9,414,026	0.56	%	14.81	%
2003	0.10	%	860,133		9.303615		8,002,346	0.73	%	24.39	%
American Century VP – Ultra® Fund – Class I
2007	0.10	%	72,634		13.212973		959,711	0.00	%	20.89	%
2006	0.10	%	28,308		10.929351		309,388	0.00	%	-3.37	%
2005	0.10	%	28,300		11.310747		320,094	0.00	%	2.06	%
2004	0.10	%	9,976		11.082064		110,555	0.00	%	10.56	%
2003	0.10	%	865		10.023142		8,670	0.00	%	24.77	%
American Century VP – Value Fund – Class I
2007	0.10	%	146,596		20.716530		3,036,960	1.58	%	-5.23	%
2006	0.10	%	62,962		21.860590		1,376,386	1.41	%	18.53	%
2005	0.10	%	71,456		18.442377		1,317,818	0.83	%	4.93	%
2004	0.10	%	59,642		17.576102		1,048,274	0.97	%	14.22	%
2003	0.10	%	68,891		15.388111		1,060,102	1.04	%	28.83	%
American Century VP – VistaSM Fund – Class I
2007	0.10	%	29,042		17.419741		505,904	0.00	%	39.63	%
BlackRock Large Cap Core V.I. Fund – Class II
2007	0.10	%	16,026		14.333835		229,714	1.23	%	8.02	%
Calvert Variable Series Inc. – Social Equity Portfolio
2007	0.10	%	3,460		16.964928		58,699	0.00	%	9.88	%
2006	0.10	%	1,026		15.439612		15,841	0.00	%	9.95	%
2005	0.10	%	1,026		14.042800		14,408	0.06	%	4.44	%
2004	0.10	%	1,026		13.445930		13,796	0.08	%	7.05	%
2003	0.10	%	1,026		12.560357		12,887	0.01	%	22.05	%
Credit Suisse Trust – Large Cap Value Portfolio
2003	0.10	%	9,715		11.248621		109,280	0.76	%	25.04	%
Dreyfus IP – Mid Cap Stock Portfolio – Initial Shares
2007	0.10	%	27,786		17.871247		496,570	0.45	%	1.40	%
2006	0.10	%	2,040		17.625316		35,956	0.37	%	7.64	%
2005	0.10	%	2,806		16.374088		45,946	0.02	%	9.06	%
2004	0.10	%	2,784		15.013547		41,798	0.43	%	14.36	%
2003	0.10	%	98,265		13.128294		1,290,052	1.02	%	31.59	%
Dreyfus IP – Small Cap Stock Index Portfolio – Service Shares
2007	0.10	%	227,178		15.620822		3,548,707	0.38	%	-0.75	%
2006	0.10	%	28,070		15.739536		441,809	0.38	%	14.30	%
2005	0.10	%	37,378		13.770744		514,723	0.00	%	7.13	%
2004	0.10	%	219,642		12.854754		2,823,444	0.57	%	21.76	%
2003	0.10	%	220,855		10.557229		2,331,617	0.27	%	37.64	%
Dreyfus Stock Index Fund, Inc. – Initial Shares
2007	0.10	%	715,466		12.675284		9,068,735	1.72	%	5.15	%
2006	0.10	%	363,900		12.054530		4,386,643	1.64	%	15.38	%
2005	0.10	%	426,152		10.447448		4,452,201	1.63	%	4.59	%
2004	0.10	%	1,151,618		9.989249		11,503,799	1.82	%	10.53	%
2003	0.10	%	1,165,447		9.037627		10,532,875	1.54	%	28.23	%

(Continued)

80

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Dreyfus VIF – Appreciation Portfolio – Initial Shares
2007	0.10	%	108,528	$	13.238181	$	1,436,713	1.56	%	7.02	%
2006	0.10	%	41,554		12.369250		513,992	1.53	%	16.36	%
2005	0.10	%	49,014		10.630084		521,023	0.02	%	4.27	%
2004	0.10	%	44,950		10.194416		458,239	1.67	%	4.94	%
2003	0.10	%	55,181		9.714448		536,053	1.18	%	21.05	%
Dreyfus VIF – International Value Portfolio – Initial Shares
2007	0.10	%	105,712		21.954680		2,320,873	1.57	%	4.05	%
2006	0.10	%	70,076		21.100318		1,478,626	1.25	%	22.47	%
2005	0.10	%	71,656		17.228282		1,234,510	0.00	%	11.78	%
2004	0.10	%	69,786		15.412931		1,075,607	1.23	%	19.90	%
2003	0.10	%	64,009		12.854570		822,808	2.67	%	36.22	%
Federated IS – Quality Bond Fund II – Primary Shares
2007	0.10	%	412,398		15.382206		6,343,591	5.83	%	5.28	%
2006	0.10	%	380,302		14.611096		5,556,629	5.17	%	4.05	%
2005	0.10	%	394,406		14.042347		5,538,386	3.55	%	1.20	%
2004	0.10	%	720,724		13.876320		10,000,997	3.92	%	3.52	%
2003	0.10	%	711,865		13.404948		9,542,513	3.30	%	4.54	%
Fidelity® VIP – Equity-Income Portfolio – Service Class
2007	0.10	%	291,212		16.426769		4,783,672	1.67	%	1.32	%
2006	0.10	%	114,862		16.213431		1,862,307	3.15	%	19.96	%
2005	0.10	%	129,586		13.515730		1,751,449	1.56	%	5.65	%
2004	0.10	%	300,426		12.792683		3,843,255	1.39	%	11.27	%
2003	0.10	%	318,394		11.496883		3,660,539	1.66	%	30.09	%
Fidelity® VIP – Growth Portfolio – Service Class
2007	0.10	%	1,087,228		12.476360		13,564,648	0.62	%	26.74	%
2006	0.10	%	963,760		9.843867		9,487,125	0.28	%	6.63	%
2005	0.10	%	1,048,788		9.232178		9,682,598	0.41	%	5.57	%
2004	0.10	%	1,103,628		8.745297		9,651,555	0.16	%	3.16	%
2003	0.10	%	1,108,591		8.477377		9,397,944	0.18	%	32.65	%
Fidelity® VIP – High Income Portfolio – Service Class
2007	0.10	%	759,028		11.722369		8,897,606	8.58	%	2.55	%
2006	0.10	%	628,630		11.430519		7,185,567	7.58	%	11.07	%
2005	0.10	%	653,958		10.291612		6,730,282	14.70	%	2.42	%
2004	0.10	%	668,456		10.048366		6,716,891	8.03	%	9.36	%
2003	0.10	%	674,902		9.188481		6,201,324	6.36	%	26.84	%
Fidelity® VIP – Overseas Portfolio – Service Class
2007	0.10	%	223,530		18.521287		4,140,063	3.19	%	17.09	%
2006	0.10	%	106,768		15.818147		1,688,872	0.84	%	17.83	%
2005	0.10	%	116,010		13.424644		1,557,393	0.56	%	18.85	%
2004	0.10	%	127,656		11.295209		1,441,901	0.98	%	13.37	%
2003	0.10	%	100,484		9.962776		1,001,100	0.63	%	43.06	%
Fidelity® VIP II – Contrafund® Portfolio – Service Class
2007	0.10	%	503,350		19.513053		9,821,895	0.89	%	17.39	%
2006	0.10	%	155,940		16.622464		2,592,107	1.12	%	11.48	%
2005	0.10	%	216,460		14.910969		3,227,628	0.19	%	16.73	%
2004	0.10	%	194,978		12.773836		2,490,617	0.24	%	15.22	%
2003	0.10	%	200,777		11.086093		2,225,832	0.30	%	28.22	%
Fidelity® VIP II – Investment Grade Bond Portfolio – Service Class
2007	0.10	%	72,344		11.771423		851,592	3.80	%	4.11	%
Fidelity® VIP III – Growth Opportunities Portfolio – Service Class
2007	0.10	%	87,966		11.337986		997,357	0.00	%	22.92	%
2006	0.10	%	18,424		9.223917		169,941	0.69	%	5.20	%
2005	0.10	%	18,822		8.768269		165,036	0.84	%	8.75	%
2004	0.10	%	19,294		8.062568		155,559	0.48	%	6.95	%
2003	0.10	%	17,795		7.538466		134,147	0.59	%	29.53	%
Fidelity® VIP III – Mid Cap Portfolio – Service Class
2007	0.10	%	41,774		26.885640		1,123,121	0.72	%	15.37	%

(Continued)

81

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Fidelity® VIP III – Value Strategies Portfolio – Service Class
2007	0.10	%	45,242	$	16.900270	$	764,602	0.83	%	5.49	%
2006	0.10	%	4,096		16.020178		65,619	0.49	%	16.08	%
2005	0.10	%	6,844		13.800839		94,453	0.00	%	2.45	%
2004	0.10	%	9,532		13.470536		128,401	0.00	%	13.87	%
2003	0.10	%	9,280		11.829409		109,777	0.00	%	57.63	%
Franklin Templeton VIP – Foreign Securities Fund – Class 2
2007	0.10	%	205,828		22.842250		4,701,575	1.86	%	15.34	%
2006	0.10	%	8,186		19.804108		162,116	1.24	%	21.32	%
2005	0.10	%	25,200		16.323349		411,348	1.12	%	10.06	%
2004	0.10	%	202,324		14.831493		3,000,767	1.11	%	18.41	%
2003	0.10	%	172,783		12.525565		2,164,205	1.96	%	32.08	%
Franklin Templeton VIP – Small Cap Value Securities Fund – Class 2
2007	0.10	%	14,194		12.950462		183,819	0.63	%	-2.48	%
Gartmore GVIT – Small Cap Growth Fund: Class I – Intial Funding by Depositor
2006	0.10	%	82,090		17.233732		1,414,717	0.00	%	3.10	%
2005	0.10	%	123,464		16.714800		2,063,676	0.00	%	7.98	%
2004	0.10	%	70,962		15.479228		1,098,437	0.00	%	13.30	%
2003	0.10	%	81,334		13.661888		1,111,176	0.00	%	34.13	%
Goldman Sachs VIT Mid Cap Value Fund
2007	0.10	%	160,214		21.505877		3,445,543	0.81	%	3.10	%
2006	0.10	%	29,454		20.859259		614,389	0.98	%	16.05	%
2005	0.10	%	75,394		17.974716		1,355,186	0.60	%	12.71	%
2004	0.10	%	117,114		15.947340		1,867,657	0.74	%	25.76	%
2003	0.10	%	855		12.680880		10,842	1.72	%	28.26	%
Janus Aspen Series – Balanced Portfolio – Service Shares
2007	0.10	%	71,356		16.135395		1,151,357	2.47	%	10.18	%
2006	0.10	%	8,030		14.645065		117,600	1.99	%	10.30	%
2005	0.10	%	10,914		13.276935		144,904	2.04	%	7.55	%
2004	0.10	%	11,560		12.344530		142,703	2.45	%	8.18	%
2003	0.10	%	8,186		11.410593		93,407	2.34	%	13.61	%
Janus Aspen Series – Forty Portfolio – Service Shares
2007	0.10	%	400,482		12.781740		5,118,857	0.19	%	36.50	%
2006	0.10	%	124,964		9.364110		1,170,177	0.14	%	9.01	%
2005	0.10	%	217,972		8.590325		1,872,450	0.01	%	12.44	%
2004	0.10	%	112,522		7.639669		859,631	0.02	%	17.85	%
2003	0.10	%	178,232		6.482555		1,155,399	0.25	%	20.11	%
Janus Aspen Series – Global Technology Portfolio – Service Shares
2007	0.10	%	297,474		5.213806		1,550,972	0.34	%	21.58	%
2006	0.10	%	179,882		4.288525		771,428	0.00	%	7.72	%
2005	0.10	%	158,528		3.981148		631,123	0.00	%	11.44	%
2004	0.10	%	151,606		3.572518		541,615	0.00	%	0.47	%
2003	0.10	%	272,134		3.555943		967,693	0.00	%	46.33	%
Janus Aspen Series – International Growth Portfolio – Service Shares
2007	0.10	%	392,780		18.452535		7,247,787	0.44	%	27.89	%
2006	0.10	%	206,152		14.428484		2,974,461	1.89	%	46.48	%
2005	0.10	%	177,088		9.849961		1,744,310	1.05	%	31.81	%
2004	0.10	%	150,980		7.472984		1,128,271	0.85	%	18.57	%
2003	0.10	%	176,234		6.302712		1,110,752	1.02	%	34.40	%
JPMorgan Insurance Trust – Diversified Mid Cap Growth Portfolio 1
2007	0.10	%	50,026		20.833315		1,042,207	0.00	%	17.12	%
2006	0.10	%	35,396		17.787877		629,620	0.00	%	11.28	%
2005	0.10	%	24,994		15.985073		399,531	0.00	%	10.98	%
2004	0.10	%	2,456		14.403351		35,375	0.00	%	12.51	%
JPMorgan Insurance Trust – Diversified Mid Cap Value Portfolio 1
2007	0.10	%	4,412		19.569601		86,341	1.87	%	0.82	%
2006	0.10	%	5,886		19.411280		114,255	1.18	%	16.60	%
2005	0.10	%	5,916		16.647145		98,485	0.60	%	9.64	%
2004	0.10	%	5,950		15.182812		90,338	0.58	%	15.28	%
2003	0.10	%	5,997		13.170159		78,981	0.57	%	32.62	%

(Continued)

82

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Lincoln VIP – Baron Growth Opportunies Funds – Service Class
2007	0.10	%	129,912	$	19.476896	$	2,530,283	0.00	%	3.32	%
2006	0.10	%	80,920		18.851618		1,525,473	0.00	%	15.41	%
2005	0.10	%	97,836		16.334885		1,598,140	0.00	%	3.26	%
2004	0.10	%	128,444		15.819001		2,031,856	0.00	%	25.51	%
2003	0.10	%	13,790		12.603456		173,802	0.00	%	29.88	%
Lord Abbett Series Fund, Inc. – Mid-Cap Value Portfolio – Class VC
2007	0.10	%	46,312		12.709507		588,603	0.59	%	0.48	%
Nationwide GVIT Strategic Value Fund – Class I
2003	0.10	%	6,148		10.638965		65,408	0.04	%	38.67	%
Nationwide VIT – Federated High Income Bond Fund – Class I
2007	0.10	%	47,480		15.315998		727,204	7.29	%	3.03	%
2006	0.10	%	9,510		14.865456		141,370	7.41	%	10.49	%
2005	0.10	%	25,760		13.453811		346,570	6.92	%	2.28	%
2004	0.10	%	95,632		13.154128		1,257,956	7.58	%	9.99	%
2003	0.10	%	22,729		11.959792		271,834	7.99	%	22.15	%
Nationwide VIT – Gartmore Emerging Markets Fund – Class I
2007	0.10	%	146,372		36.622841		5,360,558	0.71	%	45.43	%
2006	0.10	%	48,516		25.182064		1,221,733	0.71	%	36.58	%
2005	0.10	%	51,076		18.437333		941,705	0.60	%	32.50	%
2004	0.10	%	70,226		13.914559		977,164	1.04	%	20.62	%
2003	0.10	%	47,949		11.535602		553,121	0.61	%	65.10	%
Nationwide VIT – Gartmore Global Utilities Fund – Class I
2007	0.10	%	44,916		24.536865		1,102,098	2.57	%	20.31	%
2006	0.10	%	11,378		20.394132		232,044	2.84	%	37.42	%
2005	0.10	%	16,528		14.840284		245,280	2.09	%	6.28	%
2004	0.10	%	13,192		13.963148		184,202	1.64	%	29.84	%
2003	0.10	%	1,184		10.754365		12,733	1.02	%	23.93	%
Nationwide VIT – Gartmore International Growth Fund – Class I
2007	0.10	%	180,062		16.953079		3,052,605	0.38	%	27.02	%
2006	0.10	%	109,564		13.347009		1,462,352	0.84	%	32.83	%
2005	0.10	%	96,242		10.048006		967,040	1.10	%	30.08	%
2004	0.10	%	50,722		7.724537		391,804	0.85	%	14.08	%
2003	0.10	%	40,966		6.771174		277,388	0.00	%	35.49	%
Nationwide VIT – Gartmore Worldwide Leaders Fund – Class I
2007	0.10	%	109,004		17.774048		1,937,442	0.41	%	19.78	%
2006	0.10	%	64,922		14.839096		963,384	0.85	%	25.76	%
2005	0.10	%	79,212		11.799959		934,698	1.11	%	19.22	%
2004	0.10	%	120,048		9.897753		1,188,205	0.00	%	15.55	%
2003	0.10	%	11,041		8.565807		94,575	0.00	%	35.92	%
Nationwide VIT – Global Financial Services Fund – Class I
2007	0.10	%	104,978		19.510815		2,048,206	3.45	%	-1.15	%
2006	0.10	%	98,040		19.738206		1,935,134	1.89	%	20.20	%
2005	0.10	%	69,072		16.420998		1,134,231	2.00	%	11.04	%
2004	0.10	%	5,676		14.788326		83,939	1.37	%	20.87	%
2003	0.10	%	4,317		12.234704		52,817	1.08	%	41.31	%
Nationwide VIT – Global Health Sciences Fund – Class l
2007	0.10	%	52,696		15.410067		812,049	0.07	%	13.05	%
2006	0.10	%	13,596		13.631572		185,335	0.00	%	2.61	%
2005	0.10	%	20,710		13.285419		275,141	0.00	%	8.33	%
2004	0.10	%	49,544		12.263680		607,592	0.00	%	7.75	%
2003	0.10	%	8,967		11.381435		102,057	0.00	%	36.56	%
Nationwide VIT – Global Technology and Communications Fund – Class I
2007	0.10	%	257,506		4.210915		1,084,336	0.00	%	19.97	%
2006	0.10	%	101,564		3.509892		356,479	0.00	%	11.06	%
2005	0.10	%	125,958		3.160408		398,079	0.00	%	-0.62	%
2004	0.10	%	675,570		3.180008		2,148,318	0.00	%	4.21	%
2003	0.10	%	111,866		3.051579		341,368	0.00	%	55.08	%

(Continued)

83

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Nationwide VIT – Government Bond Fund – Class I
2007	0.10	%	160,904	$	15.831585	$	2,547,365	4.48	%	7.05	%
2006	0.10	%	78,218		14.788907		1,156,759	3.95	%	3.24	%
2005	0.10	%	100,704		14.325057		1,442,591	3.71	%	3.16	%
2004	0.10	%	68,418		13.886189		950,065	5.38	%	3.16	%
2003	0.10	%	112,900		13.460973		1,519,744	3.25	%	1.90	%
Nationwide VIT – Growth Fund – Class I
2007	0.10	%	226,134		7.476755		1,690,749	0.18	%	19.42	%
2006	0.10	%	51,726		6.260681		323,840	0.05	%	6.06	%
2005	0.10	%	59,854		5.902844		353,309	0.08	%	6.39	%
2004	0.10	%	47,844		5.548096		265,443	0.34	%	8.05	%
2003	0.10	%	27,011		5.134813		138,696	0.02	%	32.61	%
Nationwide VIT – Investor Destinations Aggressive Fund – Class II
2007	0.10	%	211,970		16.644647		3,528,166	2.03	%	5.85	%
2006	0.10	%	23,050		15.724474		362,449	2.11	%	16.75	%
2005	0.10	%	24,154		13.468331		325,314	2.02	%	7.82	%
2004	0.10	%	24,186		12.491088		302,109	1.85	%	13.91	%
2003	0.10	%	23,514		10.965564		257,844	1.57	%	31.74	%
Nationwide VIT – Investor Destinations Conservative Fund – Class II
2007	0.10	%	35,914		13.039806		468,312	3.54	%	5.28	%
2006	0.10	%	26,518		12.386397		328,462	3.23	%	6.06	%
2005	0.10	%	29,088		11.678890		339,716	2.49	%	3.20	%
2004	0.10	%	21,194		11.316349		239,839	2.49	%	4.55	%
2003	0.10	%	13,104		10.824110		141,839	2.59	%	7.80	%
Nationwide VIT – Investor Destinations Moderate Fund – Class II
2007	0.10	%	117,560		14.808865		1,740,930	2.71	%	5.55	%
2006	0.10	%	1,864		14.029768		26,151	2.47	%	12.47	%
2005	0.10	%	1,874		12.611956		23,635	2.39	%	5.24	%
2004	0.10	%	39,950		11.984122		478,766	2.21	%	9.43	%
2003	0.10	%	1,913		10.951794		20,951	2.05	%	19.93	%
Nationwide VIT – Investor Destinations Moderately Aggressive Fund – Class II
2007	0.10	%	168,006		15.960296		2,681,425	2.31	%	6.04	%
2006	0.10	%	18,108		15.050687		272,538	2.25	%	14.43	%
2005	0.10	%	20,444		13.153196		268,904	2.19	%	6.97	%
2004	0.10	%	14,182		12.296725		174,392	2.01	%	11.98	%
2003	0.10	%	6,422		10.981133		70,521	1.61	%	26.52	%
Nationwide VIT – Investor Destinations Moderately Conservative Fund – Class II
2007	0.10	%	76,886		14.005474		1,076,825	3.18	%	5.75	%
2006	0.10	%	8,862		13.243591		117,365	2.84	%	8.31	%
2005	0.10	%	8,950		12.226987		109,432	2.78	%	4.38	%
2004	0.10	%	9,038		11.713743		105,869	2.38	%	7.05	%
2003	0.10	%	2,011		10.942135		22,005	2.33	%	13.58	%
Nationwide VIT – J.P. Morgan Balanced Fund – Class I
2007	0.10	%	83,510		12.893261		1,076,716	2.16	%	4.52	%
2006	0.10	%	64,592		12.335682		796,786	2.25	%	12.14	%
2005	0.10	%	81,682		11.000579		898,549	1.98	%	2.44	%
2004	0.10	%	59,166		10.738528		635,356	1.94	%	8.38	%
2003	0.10	%	19,620		9.907971		194,394	1.76	%	18.30	%
Nationwide VIT – Mid Cap Growth Fund – Class I
2007	0.10	%	104,616		12.883089		1,347,777	0.00	%	8.91	%
2006	0.10	%	101,742		11.829636		1,203,571	0.00	%	9.80	%
2005	0.10	%	102,290		10.773967		1,102,069	0.00	%	9.63	%
2004	0.10	%	102,944		9.827397		1,011,672	0.00	%	15.22	%
2003	0.10	%	121,377		8.529042		1,035,230	0.00	%	39.99	%
Nationwide VIT – Mid Cap Index Fund – Class I
2007	0.10	%	234,870		24.203943		5,684,780	1.35	%	7.45	%
2006	0.10	%	154,944		22.525451		3,490,183	1.14	%	9.78	%
2005	0.10	%	169,140		20.518746		3,470,541	1.04	%	11.99	%
2004	0.10	%	193,708		18.322527		3,549,220	0.56	%	15.62	%
2003	0.10	%	216,768		15.847726		3,435,280	0.50	%	34.52	%

(Continued)

84

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Nationwide VIT – Money Market Fund – Class V
2007	0.10	%	5,521,946	$	11.419178	$	63,056,084	4.74	%	4.76	%
2006	0.10	%	6,733,802		10.900267		73,400,240	4.63	%	4.51	%
2005	0.10	%	537,434		10.429961		5,605,416	2.74	%	2.65	%
2004	0.10	%	13,954,380		10.160839		141,788,209	0.91	%	0.79	%
2003	0.10	%	8,030,895		10.081195		80,961,019	0.70	%	0.61	%
Nationwide VIT – Multi-Manager Small Cap Growth Fund – Class I
2007	0.10	%	104,246		18.895046		1,969,733	0.00	%	9.64	%
Nationwide VIT – Multi-Manager Small Cap Value Fund – Class I
2007	0.10	%	262,148		28.633322		7,506,168	1.13	%	-6.99	%
2006	0.10	%	237,134		30.784276		7,299,999	0.43	%	17.18	%
2005	0.10	%	250,094		26.271693		6,570,393	0.07	%	2.97	%
2004	0.10	%	250,742		25.513967		6,397,423	0.00	%	17.18	%
2003	0.10	%	270,768		21.773115		5,895,463	0.00	%	56.70	%
Nationwide VIT – Multi-Manager Small Company Fund – Class I
2007	0.10	%	214,492		26.630532		5,712,036	0.09	%	2.03	%
2006	0.10	%	109,004		26.100738		2,845,085	0.10	%	11.93	%
2005	0.10	%	123,158		23.319481		2,871,981	0.00	%	12.20	%
2004	0.10	%	254,060		20.783025		5,280,135	0.00	%	18.90	%
2003	0.10	%	334,150		17.478961		5,840,595	0.00	%	40.87	%
Nationwide VIT – Nationwide Fund – Class l
2007	0.10	%	28,344,872		13.705507		388,480,842	1.03	%	8.07	%
2006	0.10	%	37,804,244		12.681766		479,424,576	1.09	%	13.51	%
2005	0.10	%	38,013,326		11.171952		424,683,053	1.00	%	7.33	%
2004	0.10	%	19,034,918		10.408568		198,126,238	1.30	%	9.64	%
2003	0.10	%	19,180,432		9.493288		182,085,365	0.59	%	27.38	%
Nationwide VIT – Nationwide Leaders Fund – Class I
2007	0.10	%	44,572		17.877821		796,850	1.24	%	11.45	%
2006	0.10	%	8,386		16.041401		134,523	0.70	%	15.93	%
2005	0.10	%	13,776		13.837136		190,620	1.29	%	10.20	%
2004	0.10	%	12,564		12.556222		157,756	0.48	%	18.67	%
2003	0.10	%	8,556		10.580391		90,526	0.15	%	25.26	%
Nationwide VIT – U.S. Growth Leaders Fund – Class I
2007	0.10	%	147,470		19.128541		2,820,886	0.00	%	22.36	%
2006	0.10	%	74,050		15.632647		1,157,598	0.27	%	-0.39	%
2005	0.10	%	70,284		15.693455		1,102,999	0.00	%	11.85	%
2004	0.10	%	44,170		14.030717		619,737	0.00	%	12.30	%
2003	0.10	%	36,540		12.494332		456,543	0.00	%	51.98	%
Nationwide VIT – Van Kampen Comstock Value Fund – Class I
2007	0.10	%	50,950		12.250079		624,142	1.74	%	-2.31	%
2006	0.10	%	5,264		12.540372		66,013	1.73	%	15.79	%
2005	0.10	%	5,204		10.830304		56,361	1.61	%	4.14	%
2004	0.10	%	230,518		10.399470		2,397,265	1.39	%	17.38	%
2003	0.10	%	233,799		8.859580		2,071,361	1.34	%	31.30	%
Nationwide VIT – Van Kampen Multi Sector Bond Fund – Class I
2007	0.10	%	81,530		15.936672		1,299,317	4.18	%	4.52	%
2006	0.10	%	18,772		15.247568		286,227	4.07	%	4.73	%
2005	0.10	%	28,056		14.558458		408,452	3.99	%	2.08	%
2004	0.10	%	6,318		14.262059		90,108	4.55	%	6.43	%
2003	0.10	%	3,251		13.400762		43,566	5.42	%	12.00	%
Neuberger Berman AMT – Fasciano Portfolio – S Class Shares
2007	0.10	%	24,496		15.257956		373,759	0.00	%	0.41	%
2006	0.10	%	9,420		15.195016		143,137	0.00	%	5.15	%
2005	0.10	%	1,074		14.451137		15,521	0.00	%	2.79	%
2004	0.10	%	51,200		14.058294		719,785	0.00	%	11.76	%
2003	0.10	%	1,074		12.578474		13,509	0.00	%	24.94	%

(Continued)

85

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Neuberger Berman AMT – Guardian Portfolio – I Class Shares
2007	0.10	%	100,594	$	16.042197	$	1,613,749	0.26	%	7.28	%
2006	0.10	%	88,754		14.953594		1,327,191	0.70	%	13.26	%
2005	0.10	%	34,424		13.202464		454,482	0.15	%	8.28	%
2004	0.10	%	26,978		12.192566		328,931	0.12	%	15.70	%
2003	0.10	%	21,062		10.538218		221,956	0.89	%	31.63	%
Neuberger Berman AMT – Mid-Cap Growth Portfolio – I Class Shares
2007	0.10	%	412,472		18.303613		7,549,728	0.00	%	22.40	%
2006	0.10	%	366,596		14.953339		5,481,834	0.00	%	14.58	%
2005	0.10	%	383,494		13.050574		5,004,817	0.00	%	13.63	%
2004	0.10	%	394,394		11.485392		4,529,770	0.00	%	16.19	%
2003	0.10	%	392,036		9.884865		3,875,223	0.00	%	27.94	%
Neuberger Berman AMT – Partners Portfolio – Class I
2007	0.10	%	194,378		17.983949		3,495,684	0.62	%	9.23	%
2006	0.10	%	148,132		16.464820		2,438,967	0.68	%	12.13	%
2005	0.10	%	185,490		14.683836		2,723,705	0.98	%	17.93	%
2004	0.10	%	162,162		12.451586		2,019,174	0.01	%	18.86	%
2003	0.10	%	6,882		10.476169		72,097	0.00	%	34.95	%
Oppenheimer VAF – Capital Appreciation Fund – Non-Service Shares
2007	0.10	%	671,050		15.184919		10,189,840	0.22	%	14.03	%
2006	0.10	%	530,754		13.316078		7,067,562	0.38	%	7.84	%
2005	0.10	%	558,612		12.347907		6,897,689	0.91	%	4.99	%
2004	0.10	%	876,150		11.760631		10,304,077	0.31	%	6.83	%
2003	0.10	%	882,196		11.008811		9,711,929	0.38	%	30.81	%
Oppenheimer VAF – Global Securities Fund – Non-Service Shares
2007	0.10	%	319,328		15.902782		5,078,204	1.33	%	6.21	%
2006	0.10	%	150,202		14.972632		2,248,919	1.07	%	17.57	%
2005	0.10	%	183,864		12.734604		2,341,435	1.00	%	14.19	%
2004	0.10	%	419,770		11.151785		4,681,185	1.15	%	19.04	%
2003	0.10	%	441,202		9.367798		4,133,091	0.73	%	42.88	%
Oppenheimer VAF – Main Street® – Non-Service Shares
2007	0.10	%	92,924		13.674278		1,270,669	1.00	%	4.32	%
2006	0.10	%	43,364		13.108136		568,421	1.10	%	14.91	%
2005	0.10	%	65,504		11.407291		747,223	1.37	%	5.87	%
2004	0.10	%	62,892		10.774785		677,648	0.83	%	9.35	%
2003	0.10	%	236,533		9.853529		2,330,685	0.90	%	26.59	%
Oppenheimer VAF – Mid Cap Fund – Non-Service Shares
2007	0.10	%	528,414		13.424400		7,093,641	0.00	%	6.23	%
2006	0.10	%	445,344		12.637642		5,628,098	0.00	%	2.85	%
2005	0.10	%	448,332		12.287042		5,508,674	0.00	%	12.21	%
2004	0.10	%	538,726		10.949589		5,898,828	0.00	%	19.66	%
2003	0.10	%	588,192		9.150815		5,382,436	0.00	%	25.46	%
PIMCO VIT – All Asset Portfolio – Administrative Shares
2007	0.10	%	15,834		13.472183		213,319	8.25	%	8.22	%
PIMCO VIT – Low Duration Portfolio – Administrative Shares
2007	0.10	%	115,344		11.918100		1,374,681	4.75	%	7.27	%
2006	0.10	%	24,296		11.110721		269,946	4.19	%	3.86	%
2004	0.10	%	435,394		10.602263		4,616,162	1.29	%	1.74	%
2003	0.10	%	456,933		10.421178		4,761,780	1.22	%	2.24	%
PIMCO VIT – Real Return Portfolio – Administrative Shares
2007	0.10	%	93,920		13.914414		1,306,842	4.64	%	10.53	%
2006	0.10	%	50,474		12.588282		635,381	4.26	%	0.64	%
2005	0.10	%	80,408		12.508033		1,005,746	2.85	%	1.97	%
2004	0.10	%	96,300		12.266232		1,181,238	1.03	%	8.78	%
2003	0.10	%	24,527		11.276054		276,568	2.35	%	8.75	%

(Continued)

86

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
PIMCO VIT – Total Return Portfolio – Administrative Shares
2007	0.10	%	832,700	$	13.106902	$	10,914,117	4.81	%	8.63	%
2006	0.10	%	8,770		12.065231		105,812	4.42	%	3.74	%
2005	0.10	%	30,398		11.629906		353,526	3.47	%	2.32	%
2004	0.10	%	50,172		11.365760		570,243	1.92	%	4.78	%
2003	0.10	%	4,202		10.847595		45,582	2.71	%	4.94	%
Pioneer VCT – Pioneer High Yield Portfolio – Class I Shares
2007	0.10	%	100,470		17.342224		1,742,373	5.36	%	5.81	%
2006	0.10	%	10,514		16.389248		172,317	5.53	%	8.39	%
2005	0.10	%	11,722		15.120107		177,238	5.49	%	1.84	%
2004	0.10	%	16,298		14.846381		241,966	5.59	%	7.95	%
2003	0.10	%	82,218		13.752414		1,130,696	5.84	%	32.65	%
Royce Capital Fund – Micro-Cap Portfolio
2007	0.10	%	192,752		24.012175		4,628,395	1.50	%	3.87	%
2006	0.10	%	102,390		23.116715		2,366,920	0.17	%	20.95	%
2005	0.10	%	11,746		19.112697		224,498	0.60	%	11.50	%
2004	0.10	%	11,820		17.141696		202,615	0.00	%	13.73	%
2003	0.10	%	76,384		15.072020		1,151,261	0.00	%	49.01	%
T. Rowe Price Equity Income Portfolio – II
2007	0.10	%	160,922		18.324230		2,948,772	1.51	%	2.93	%
2006	0.10	%	17,014		17.803262		302,905	1.35	%	18.53	%
2005	0.10	%	22,826		15.020167		342,850	1.39	%	3.59	%
2004	0.10	%	11,962		14.499419		173,442	1.46	%	14.50	%
2003	0.10	%	19,960		12.663048		252,754	1.80	%	25.05	%
T. Rowe Price Mid-Cap Growth Portfolio – II
2007	0.10	%	118,598		23.736199		2,815,066	0.00	%	17.11	%
2006	0.10	%	23,520		20.268825		476,723	0.00	%	6.28	%
2005	0.10	%	44,810		19.071958		854,614	0.00	%	14.32	%
2004	0.10	%	172,276		16.682608		2,874,013	0.00	%	17.94	%
2003	0.10	%	168,799		14.145535		2,387,752	0.00	%	37.95	%
T. Rowe Price New America Growth Portfolio
2007	0.10	%	25,334		13.758234		348,551	0.00	%	13.67	%
The Dreyfus Socially Responsible Growth Fund, Inc.– Initial Shares
2007	0.10	%	116,744		9.716245		1,134,313	0.54	%	7.68	%
2006	0.10	%	84,702		9.023502		764,309	0.11	%	9.09	%
2005	0.10	%	90,610		8.271484		749,479	0.00	%	3.51	%
2004	0.10	%	88,956		7.990838		710,833	0.40	%	6.10	%
2003	0.10	%	85,500		7.531118		643,911	0.11	%	25.88	%
Turner GVIT Growth Focus Fund – Class I
2003	0.10	%	32,705		3.326027		108,778	0.00	%	50.81	%
Van Eck Worldwide Insurance Trust – Emerging Markets Fund – Initial Class
2007	0.10	%	94,388		48.778177		4,604,075	0.40	%	37.48	%
2006	0.10	%	43,526		35.481161		1,544,353	0.56	%	39.35	%
2005	0.10	%	38,212		25.461491		972,934	0.71	%	31.86	%
2004	0.10	%	32,436		19.308855		626,302	0.53	%	25.76	%
2003	0.10	%	26,838		15.353127		412,047	0.11	%	54.03	%
Van Eck Worldwide Insurance Trust – Hard Assets Fund – Initial Class
2007	0.10	%	99,614		55.665036		5,545,017	0.11	%	45.21	%
2006	0.10	%	20,452		38.333948		784,006	0.06	%	24.37	%
2005	0.10	%	26,250		30.823042		809,105	0.31	%	51.52	%
2004	0.10	%	7,980		20.342743		162,335	0.31	%	24.10	%
2003	0.10	%	7,570		16.424776		124,336	0.41	%	44.93	%
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I
2007	0.10	%	53,870		29.969902		1,614,479	7.13	%	6.42	%
2006	0.10	%	11,152		28.160613		314,047	10.28	%	10.70	%
2005	0.10	%	17,164		25.439451		436,643	7.14	%	12.14	%
2004	0.10	%	6,174		22.685707		140,062	7.52	%	9.95	%
2003	0.10	%	11,686		20.632384		241,110	0.00	%	27.74	%

(Continued)

87

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Van Kampen UIF – Mid Cap Growth Portfolio – class I
2007	0.10	%	59,566	$	11.399129	$	679,001	0.00	%	22.54	%
2006	0.10	%	21,636		9.302196		201,262	0.00	%	9.17	%
2005	0.10	%	21,748		8.521148		185,318	0.00	%	17.45	%
2004	0.10	%	21,882		7.255105		158,756	0.00	%	21.47	%
2003	0.10	%	22,063		5.972526		131,772	0.00	%	41.62	%
Van Kampen UIF – U.S. Real Estate Portfolio – Class I
2007	0.10	%	183,278		35.252498		6,461,007	1.11	%	-17.15	%
2006	0.10	%	109,384		42.551820		4,654,488	1.07	%	37.91	%
2005	0.10	%	125,524		30.855447		3,873,099	1.19	%	16.93	%
2004	0.10	%	110,058		26.386900		2,904,089	1.61	%	36.26	%
2003	0.10	%	189,968		19.365338		3,678,795	0.00	%	37.37	%
W&R Target Funds, Inc. – Growth Portfolio
2007	0.10	%	12,832		15.465588		198,454	0.00	%	25.69	%
W&R Target Funds, Inc. – Real Estate Securities Portfolio
2007	0.10	%	5,798		12.530753		72,653	1.28	%	-16.15	%
Wells Fargo AVT – Opportunity FundSM
2007	0.10	%	224,604		14.442760		3,243,902	0.61	%	6.53	%
2006	0.10	%	143,310		13.557898		1,942,982	0.00	%	12.11	%
2005	0.10	%	114,460		12.093732		1,384,249	0.00	%	7.78	%
2004	0.10	%	184,596		11.221097		2,071,370	0.00	%	18.10	%
2003	0.10	%	223,707		9.501191		2,125,483	0.08	%	36.87	%
The BEST of AMERICA® America’s FUTURE Life SeriesSM Reduced Fee Tier (0.20%)
AIM VIF – Basic Value Fund – Series I
2007	0.20	%	34,052		17.584241		598,779	0.59	%	1.34	%
2006	0.20	%	55,730		17.351728		967,012	0.42	%	12.98	%
2005	0.20	%	46,214		15.358428		709,774	0.09	%	5.53	%
2004	0.20	%	23,358		14.554224		339,958	0.00	%	10.85	%
2003	0.20	%	4,973		13.129953		65,295	0.06	%	33.36	%
AIM VIF – Capital Appreciation Fund – Series I
2003	0.20	%	288		13.259800		3,819	0.00	%	35.09	%
AIM VIF – Capital Development Fund – Series I
2007	0.20	%	105,866		21.507445		2,276,907	0.00	%	10.62	%
2006	0.20	%	73,000		19.442307		1,419,288	0.00	%	16.29	%
2005	0.20	%	21,682		16.719125		362,504	0.00	%	9.39	%
2004	0.20	%	996		15.284432		15,223	0.00	%	15.27	%
AIM VIF – International Growth Fund – Series I
2007	0.20	%	187,080		20.560904		3,846,534	0.53	%	14.49	%
2006	0.20	%	189,366		17.958795		3,400,785	0.97	%	27.98	%
2005	0.20	%	451,992		14.032735		6,342,684	1.14	%	17.69	%
2004	0.20	%	126,346		11.923183		1,506,446	1.36	%	19.23	% 05/03/04
AllianceBernstein VPS – Growth and Income Portfolio – Class A
2007	0.20	%	47,418		18.938067		898,005	1.44	%	4.91	%
2006	0.20	%	44,760		18.052215		808,017	1.37	%	17.05	%
2005	0.20	%	37,842		15.422290		583,610	1.48	%	4.66	%
2004	0.20	%	28,554		14.735953		420,770	0.92	%	11.24	%
2003	0.20	%	5,515		13.247066		73,058	0.51	%	32.24	%
AllianceBernstein VPS – International Value Portfolio – Class A
2007	0.20	%	656,858		11.964050		7,858,682	1.13	%	5.63	%
2006	0.20	%	287,868		11.326575		3,260,558	0.57	%	13.27	% 05/01/06
American Century VP – Income & Growth Fund – Class I
2007	0.20	%	101,346		13.203656		1,338,138	1.91	%	-0.27	%
2006	0.20	%	163,996		13.239121		2,171,163	1.85	%	16.85	%
2005	0.20	%	123,222		11.329648		1,396,062	1.94	%	4.42	%
2004	0.20	%	141,218		10.849845		1,532,193	1.37	%	12.77	%
2003	0.20	%	166,512		9.621502		1,602,096	1.28	%	29.09	%

(Continued)

88

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
American Century VP – International Fund – Class I
2007	0.20	%	563,546	$	13.983846	$	7,880,540	0.70	%	17.82	%
2006	0.20	%	530,226		11.868885		6,293,191	1.58	%	24.78	%
2005	0.20	%	640,818		9.512128		6,095,543	1.25	%	13.03	%
2004	0.20	%	434,052		8.415693		3,652,848	0.56	%	14.69	%
2003	0.20	%	384,244		7.337502		2,819,391	0.73	%	24.26	%
American Century VP – Ultra® Fund – Class I
2007	0.20	%	61,870		13.138291		812,866	0.00	%	20.77	%
2006	0.20	%	38,106		10.878509		414,536	0.00	%	-3.47	%
2005	0.20	%	34,792		11.269368		392,084	0.00	%	1.96	%
2004	0.20	%	7,212		11.052535		79,711	0.00	%	10.45	%
2003	0.20	%	1,924		10.006426		19,252	0.00	%	24.65	%
American Century VP – Value Fund – Class I
2007	0.20	%	200,240		17.908888		3,586,076	1.58	%	-5.33	%
2006	0.20	%	228,952		18.916906		4,331,063	1.41	%	18.42	%
2005	0.20	%	421,892		15.974895		6,739,680	0.83	%	4.82	%
2004	0.20	%	321,958		15.239704		4,906,545	0.97	%	14.10	%
2003	0.20	%	190,981		13.355894		2,550,722	1.04	%	28.70	%
Credit Suisse Trust – Global Small Cap Portfolio
2004	0.20	%	7,744		8.356633		64,714	0.00	%	17.75	%
2003	0.20	%	7,043		7.096703		49,982	0.00	%	47.36	%
Credit Suisse Trust – International Focus Portfolio
2004	0.20	%	10,148		9.684322		98,276	0.99	%	14.51	%
2003	0.20	%	9,647		8.456964		81,584	0.49	%	32.82	%
Credit Suisse Trust – Large Cap Value Portfolio
2004	0.20	%	35,398		11.474634		406,179	0.58	%	11.12	%
2003	0.20	%	20,469		10.326271		211,368	0.76	%	24.91	%
Dreyfus IP – Mid Cap Stock Portfolio – Initial Shares
2007	0.20	%	14,222		17.776343		252,815	0.45	%	1.29	%
2006	0.20	%	15,656		17.549344		274,753	0.37	%	7.53	%
2005	0.20	%	13,484		16.319776		220,056	0.02	%	8.95	%
2004	0.20	%	20,268		14.978665		303,588	0.43	%	14.25	%
2003	0.20	%	8,456		13.110902		110,866	1.02	%	31.46	%
Dreyfus IP – Small Cap Stock Index Portfolio – Service Shares
2007	0.20	%	151,814		15.532546		2,358,058	0.38	%	-0.85	%
2006	0.20	%	155,436		15.666332		2,435,112	0.38	%	14.18	%
2005	0.20	%	219,726		13.720362		3,014,720	0.00	%	7.02	%
2004	0.20	%	330,608		12.820499		4,238,560	0.57	%	21.64	%
2003	0.20	%	13,371		10.539624		140,925	0.27	%	37.50	%
Dreyfus Stock Index Fund, Inc. – Initial Shares
2007	0.20	%	3,344,206		12.210172		40,833,330	1.72	%	5.04	%
2006	0.20	%	3,580,384		11.623891		41,617,993	1.64	%	15.27	%
2005	0.20	%	6,634,008		10.084272		66,899,141	1.63	%	4.48	%
2004	0.20	%	4,920,402		9.651621		47,489,855	1.82	%	10.42	%
2003	0.20	%	3,957,858		8.740894		34,595,217	1.54	%	28.11	%
Dreyfus VIF – Appreciation Portfolio – Initial Shares
2007	0.20	%	141,606		12.345312		1,748,170	1.56	%	6.92	%
2006	0.20	%	139,136		11.546593		1,606,547	1.53	%	16.24	%
2005	0.20	%	66,566		9.932997		661,200	0.02	%	4.17	%
2004	0.20	%	290,942		9.535398		2,774,248	1.67	%	4.84	%
2003	0.20	%	265,908		9.095533		2,418,575	1.18	%	20.93	%
Dreyfus VIF – International Value Portfolio- Initial Shares
2007	0.20	%	553,448		21.838102		12,086,254	1.57	%	3.94	%
2006	0.20	%	644,284		21.009394		13,536,016	1.25	%	22.35	%
2005	0.20	%	679,392		17.171154		11,665,945	0.00	%	11.67	%
2004	0.20	%	1,014,594		15.377151		15,601,565	1.23	%	19.78	%
2003	0.20	%	611,687		12.837546		7,852,560	2.67	%	36.08	%

(Continued)

89

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Federated IS – Quality Bond Fund II – Primary Shares
2007	0.20	%	110,682	$	15.249527	$	1,687,848	5.83	%	5.17	%
2006	0.20	%	197,756		14.499637		2,867,390	5.17	%	3.95	%
2005	0.20	%	1,334,518		13.949122		18,615,354	3.55	%	1.10	%
2004	0.20	%	1,045,524		13.797947		14,426,085	3.92	%	3.41	%
2003	0.20	%	705,554		13.342573		9,413,906	3.30	%	4.44	%
Fidelity® VIP – Equity-Income Portfolio – Service Class
2007	0.20	%	488,726		15.127358		7,393,133	1.67	%	1.21	%
2006	0.20	%	524,062		14.945916		7,832,587	3.15	%	19.84	%
2005	0.20	%	600,930		12.471541		7,494,523	1.56	%	5.55	%
2004	0.20	%	253,254		11.816128		2,992,482	1.39	%	11.16	%
2003	0.20	%	141,957		10.629864		1,508,984	1.66	%	29.96	%
Fidelity® VIP – Growth Portfolio – Service Class
2007	0.20	%	882,468		11.134607		9,825,934	0.62	%	26.62	%
2006	0.20	%	1,027,390		8.794051		9,034,920	0.28	%	6.52	%
2005	0.20	%	525,004		8.255819		4,334,338	0.41	%	5.46	%
2004	0.20	%	1,398,590		7.828218		10,948,467	0.16	%	3.06	%
2003	0.20	%	595,465		7.595988		4,523,145	0.18	%	32.52	%
Fidelity® VIP – High Income Portfolio – Service Class
2007	0.20	%	208,598		14.950148		3,118,571	8.58	%	2.45	%
2006	0.20	%	10,750		14.592608		156,871	7.58	%	10.96	%
2005	0.20	%	53,750		13.151735		706,906	14.70	%	2.32	%
2004	0.20	%	373,660		12.853699		4,802,913	8.03	%	9.25	%
2003	0.20	%	87,435		11.765514		1,028,718	6.36	%	26.72	%
Fidelity® VIP – Overseas Portfolio – Service Class
2007	0.20	%	308,712		16.568287		5,114,829	3.19	%	16.97	%
2006	0.20	%	271,410		14.164421		3,844,366	0.84	%	17.71	%
2005	0.20	%	473,692		12.033136		5,700,000	0.56	%	18.73	%
2004	0.20	%	373,770		10.134523		3,787,981	0.98	%	13.26	%
2003	0.20	%	315,760		8.947944		2,825,403	0.63	%	42.92	%
Fidelity® VIP II – Contrafund® Portfolio – Service Class
2007	0.20	%	1,674,382		18.348754		30,722,823	0.89	%	17.27	%
2006	0.20	%	1,713,066		15.646354		26,803,237	1.12	%	11.37	%
2005	0.20	%	1,838,026		14.049369		25,823,106	0.19	%	16.61	%
2004	0.20	%	708,896		12.047726		8,540,585	0.24	%	15.11	%
2003	0.20	%	143,092		10.466376		1,497,655	0.30	%	28.10	%
Fidelity® VIP II – Investment Grade Bond Portfolio – Service Class
2007	0.20	%	81,300		11.716596		952,559	3.80	%	4.00	%
2006	0.20	%	64,972		11.265752		731,958	3.34	%	4.09	%
Fidelity® VIP III – Growth Opportunities Portfolio – Service Class
2004	0.20	%	24,564		9.272138		227,761	0.48	%	6.85	%
2003	0.20	%	13,277		8.678086		115,219	0.59	%	29.40	%
Fidelity® VIP III – Value Strategies Portfolio – Service Class
2004	0.20	%	7,530		13.434633		101,163	0.00	%	13.76	%
2003	0.20	%	973		11.809676		11,491	0.00	%	57.47	%
Franklin Templeton VIP – Foreign Securities Fund – Class 2
2007	0.20	%	130,208		22.720977		2,958,453	1.86	%	15.23	%
2006	0.20	%	109,726		19.718779		2,163,663	1.24	%	21.20	%
2005	0.20	%	69,050		16.269222		1,123,390	1.12	%	9.95	%
2004	0.20	%	41,174		14.797053		609,254	1.11	%	18.29	%
2003	0.20	%	155,351		12.508977		1,943,282	1.96	%	31.95	%
Gartmore GVIT – Small Cap Growth Fund: Class I – Intial Funding by Depositor
2006	0.20	%	159,120		17.102157		2,721,295	0.00	%	3.00	%
2005	0.20	%	196,494		16.603744		3,262,536	0.00	%	7.87	%
2004	0.20	%	269,788		15.391720		4,152,501	0.00	%	13.19	%
2003	0.20	%	108,065		13.598245		1,469,494	0.00	%	34.00	%

(Continued)

90

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Goldman Sachs VIT Mid Cap Value Fund
2007	0.20	%	1,061,686	$	21.391758	$	22,711,330	0.81	%	3.00	%
2006	0.20	%	1,042,500		20.769434		21,652,135	0.98	%	15.93	%
2005	0.20	%	1,081,334		17.915150		19,372,261	0.60	%	12.60	%
2004	0.20	%	907,474		15.910334		14,438,214	0.74	%	25.63	%
2003	0.20	%	528,186		12.664093		6,688,997	1.72	%	28.13	%
Janus Aspen Series – Balanced Portfolio – Service Shares
2007	0.20	%	69,250		16.049753		1,111,445	2.47	%	10.07	%
2006	0.20	%	63,792		14.581974		930,213	1.99	%	10.19	%
2005	0.20	%	261,918		13.232912		3,465,938	2.04	%	7.45	%
2004	0.20	%	229,366		12.315866		2,824,841	2.45	%	8.08	%
2003	0.20	%	5,017		11.395477		57,171	2.34	%	13.49	%
Janus Aspen Series – Forty Portfolio – Service Shares
2007	0.20	%	250,814		12.680828		3,180,529	0.19	%	36.36	%
2006	0.20	%	291,224		9.299521		2,708,244	0.14	%	8.90	%
2005	0.20	%	294,576		8.539588		2,515,558	0.01	%	12.33	%
2004	0.20	%	233,906		7.602120		1,778,181	0.02	%	17.73	%
2003	0.20	%	262,941		6.457142		1,697,847	0.25	%	19.99	%
Janus Aspen Series – Global Technology Portfolio – Service Shares
2004	0.20	%	173,558		3.554928		616,986	0.00	%	0.37	%
2003	0.20	%	102,131		3.541982		361,746	0.00	%	46.18	%
Janus Aspen Series – International Growth Portfolio – Service Shares
2007	0.20	%	409,154		18.306795		7,490,298	0.44	%	27.76	%
2006	0.20	%	351,364		14.328921		5,034,667	1.89	%	46.34	%
2005	0.20	%	349,754		9.791747		3,424,703	1.05	%	31.68	%
2004	0.20	%	586,420		7.436235		4,360,757	0.85	%	18.45	%
2003	0.20	%	245,144		6.277993		1,539,012	1.02	%	34.26	%
JPMorgan Insurance Trust – Diversified Mid Cap Growth Portfolio 1
2007	0.20	%	71,184		20.723509		1,475,182	0.00	%	17.00	%
2006	0.20	%	43,296		17.711914		766,855	0.00	%	11.17	%
2005	0.20	%	23,694		15.932691		377,509	0.00	%	10.87	%
2004	0.20	%	8,286		14.370472		119,074	0.00	%	12.39	%
2003	0.20	%	4,483		12.785745		57,318	0.00	%	26.89	%
JPMorgan Insurance Trust – Diversified Mid Cap Value Portfolio 1
2007	0.20	%	6,420		19.466479		124,975	1.87	%	0.71	%
2006	0.20	%	6,476		19.328434		125,171	1.18	%	16.49	%
2005	0.20	%	22,284		16.592629		369,750	0.60	%	9.54	%
2004	0.20	%	14,900		15.148180		225,708	0.58	%	15.17	%
2003	0.20	%	7,236		13.153260		95,177	0.57	%	32.49	%
Lincoln VIP – Baron Growth Opportunies Funds – Service Class
2007	0.20	%	222,816		19.373459		4,316,717	0.00	%	3.21	%
2006	0.20	%	216,684		18.770366		4,067,238	0.00	%	15.29	%
2005	0.20	%	219,114		16.280709		3,567,331	0.00	%	3.16	%
2004	0.20	%	401,660		15.782247		6,339,097	0.00	%	25.39	%
2003	0.20	%	276,028		12.586755		3,474,297	0.00	%	29.75	%
Nationwide GVIT Strategic Value Fund – Class I
2003	0.20	%	9,101		10.583982		96,325	0.04	%	38.53	%
Nationwide VIT – Federated High Income Bond Fund – Class I
2007	0.20	%	69,190		17.176023		1,188,409	7.29	%	2.93	%
2006	0.20	%	61,806		16.687538		1,031,390	7.41	%	10.38	%
2005	0.20	%	75,410		15.117925		1,140,043	6.92	%	2.18	%
2004	0.20	%	810,264		14.795923		11,988,604	7.58	%	9.88	%
2003	0.20	%	777,021		13.465993		10,463,359	7.99	%	22.03	%
Nationwide VIT – Gartmore Emerging Markets Fund – Class I
2007	0.20	%	410,876		36.358404		14,938,796	0.71	%	45.29	%
2006	0.20	%	258,760		25.025345		6,475,558	0.71	%	36.45	%
2005	0.20	%	169,786		18.340864		3,114,022	0.60	%	32.37	%
2004	0.20	%	16,822		13.855548		233,078	1.04	%	20.50	%
2003	0.20	%	21,189		11.498175		243,635	0.61	%	64.93	%

(Continued)

91

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Nationwide VIT – Gartmore Global Utilities Fund – Class I
2004	0.20	%	21,186	$	13.925951	$	295,035	1.64	%	29.71	%
2003	0.20	%	12,612		10.736432		135,408	1.02	%	23.80	%
Nationwide VIT – Gartmore International Growth Fund – Class I
2004	0.20	%	12,706		7.691798		97,732	0.85	%	13.97	%
2003	0.20	%	8,703		6.749218		58,738	0.00	%	35.35	%
Nationwide VIT – Gartmore Worldwide Leaders Fund – Class I
2004	0.20	%	2,874		9.758795		28,047	0.00	%	15.43	%
2003	0.20	%	3,219		8.453981		27,213	0.00	%	35.79	%
Nationwide VIT – Global Financial Services Fund – Class I
2004	0.20	%	7,074		14.748909		104,334	1.37	%	20.75	%
2003	0.20	%	8,215		12.214302		100,340	1.08	%	41.17	%
Nationwide VIT – Global Health Sciences Fund – Class l
2007	0.20	%	90,084		15.322977		1,380,355	0.07	%	12.93	%
2006	0.20	%	72,832		13.568156		988,196	0.00	%	2.50	%
2005	0.20	%	62,816		13.236814		831,484	0.00	%	8.22	%
2004	0.20	%	16,466		12.231005		201,396	0.00	%	7.64	%
2003	0.20	%	4,437		11.362461		50,415	0.00	%	36.42	%
Nationwide VIT – Global Technology and Communications Fund – Class I
2007	0.20	%	380,790		4.180465		1,591,879	0.00	%	19.85	%
2006	0.20	%	311,356		3.488016		1,086,015	0.00	%	10.95	%
2005	0.20	%	273,712		3.143852		860,510	0.00	%	-0.71	%
2004	0.20	%	448,724		3.166487		1,420,879	0.00	%	4.10	%
2003	0.20	%	78,739		3.041648		239,496	0.00	%	54.92	%
Nationwide VIT – Government Bond Fund – Class I
2007	0.20	%	717,380		14.403124		10,332,513	4.48	%	6.94	%
2006	0.20	%	826,566		13.468059		11,132,240	3.95	%	3.14	%
2005	0.20	%	1,941,614		13.058642		25,354,842	3.71	%	3.06	%
2004	0.20	%	1,951,516		12.671201		24,728,051	5.38	%	3.06	%
2003	0.20	%	1,095,538		12.295487		13,470,173	3.25	%	1.80	%
Nationwide VIT – Growth Fund – Class I
2007	0.20	%	76,332		9.580341		731,287	0.18	%	19.30	%
2006	0.20	%	67,782		8.030198		544,303	0.05	%	5.96	%
2005	0.20	%	60,144		7.578777		455,818	0.08	%	6.29	%
2004	0.20	%	47,838		7.130400		341,104	0.34	%	7.94	%
2003	0.20	%	40,423		6.605859		267,029	0.02	%	32.47	%
Nationwide VIT – Investor Destinations Aggressive Fund – Class II
2007	0.20	%	198,282		16.546241		3,280,822	2.03	%	5.75	%
2006	0.20	%	211,872		15.647232		3,315,210	2.11	%	16.64	%
2005	0.20	%	170,910		13.415540		2,292,850	2.02	%	7.72	%
2004	0.20	%	7,054		12.454537		87,854	1.85	%	13.80	%
2003	0.20	%	2,814		10.944415		30,798	1.57	%	31.60	%
Nationwide VIT – Investor Destinations Conservative Fund – Class II
2007	0.20	%	28,608		12.962685		370,836	3.54	%	5.17	%
2006	0.20	%	22,320		12.325531		275,106	3.23	%	5.95	%
2005	0.20	%	34,084		11.633095		396,502	2.49	%	3.10	%
2004	0.20	%	2,950		11.283226		33,286	2.49	%	4.44	%
2003	0.20	%	1,756		10.803228		18,970	2.59	%	7.69	%
Nationwide VIT – Investor Destinations Moderate Fund – Class II
2007	0.20	%	221,366		14.721295		3,258,794	2.71	%	5.45	%
2006	0.20	%	206,458		13.960840		2,882,327	2.47	%	11.13	%
2005	0.20	%	114,016		12.562517		1,432,328	2.39	%	5.13	%
2004	0.20	%	28,510		11.949051		340,667	2.21	%	9.32	%
2003	0.20	%	4,545		10.930659		49,680	2.05	%	19.81	%
Nationwide VIT – Investor Destinations Moderately Aggressive Fund – Class II
2007	0.20	%	53,480		15.865910		848,509	2.31	%	5.94	%
2006	0.20	%	38,278		14.976735		573,279	2.25	%	14.31	%
2005	0.20	%	22,860		13.101623		299,503	2.19	%	6.86	%
2004	0.20	%	19,906		12.260724		244,062	2.01	%	11.87	%
2003	0.20	%	5,607		10.959933		61,452	1.61	%	26.39	%

(Continued)

92

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Nationwide VIT – Investor Destinations Moderately Conservative Fund – Class II
2007	0.20	%	21,560	$	13.922670	$	300,173	3.18	%	5.65	%
2006	0.20	%	19,512		13.178536		257,140	2.84	%	8.21	%
2005	0.20	%	18,166		12.179054		221,245	2.78	%	4.28	%
2004	0.20	%	11,104		11.679461		129,689	2.38	%	6.94	%
2003	0.20	%	3,486		10.921034		38,071	2.33	%	13.47	%
Nationwide VIT – J.P. Morgan Balanced Fund – Class I
2007	0.20	%	140,532		13.048688		1,833,758	2.16	%	4.41	%
2006	0.20	%	73,958		12.496956		924,250	2.25	%	12.02	%
2005	0.20	%	119,512		11.155509		1,333,217	1.98	%	2.34	%
2004	0.20	%	132,248		10.900634		1,441,587	1.94	%	8.27	%
2003	0.20	%	104,019		10.067605		1,047,222	1.76	%	18.18	%
Nationwide VIT – Mid Cap Growth Fund – Class I
2004	0.20	%	763,680		7.982767		6,096,280	0.00	%	15.11	%
2003	0.20	%	155,794		6.935054		1,080,440	0.00	%	39.85	%
Nationwide VIT – Mid Cap Index Fund – Class I
2007	0.20	%	433,092		18.269470		7,912,361	1.35	%	7.34	%
2006	0.20	%	639,140		17.019619		10,877,919	1.14	%	9.67	%
2005	0.20	%	704,782		15.518876		10,937,424	1.04	%	11.87	%
2004	0.20	%	458,242		13.871631		6,356,564	0.56	%	15.50	%
2003	0.20	%	280,100		12.010005		3,364,002	0.50	%	34.38	%
Nationwide VIT – Money Market Fund – Class I
2007	0.20	%	5,226		11.855541		61,957	4.65	%	4.58	%
2006	0.20	%	5,784		11.336122		65,568	4.43	%	4.32	%
2005	0.20	%	12,740		10.866496		138,439	2.61	%	2.46	%
2004	0.20	%	30,788		10.605257		326,515	0.80	%	0.61	%
2003	0.20	%	221,572		10.540982		2,335,586	0.63	%	0.42	%
Nationwide VIT – Money Market Fund – Class V
2007	0.20	%	9,193,300		11.359928		104,435,226	4.74	%	4.66	%
2006	0.20	%	8,530,114		10.854633		92,591,257	4.63	%	4.40	%
2005	0.20	%	7,660,560		10.396676		79,644,360	2.74	%	2.55	%
2004	0.20	%	8,296,360		10.138533		84,112,920	0.91	%	0.69	%
2003	0.20	%	6,564,517		10.069143		66,099,060	0.70	%	0.50	%
Nationwide VIT – Multi-Manager Small Cap Growth Fund – Class I
2007	0.20	%	101,242		18.731944		1,896,459	0.00	%	9.53	%
Nationwide VIT – Multi-Manager Small Cap Value Fund – Class I
2007	0.20	%	289,534		20.514502		5,939,646	1.13	%	-7.08	%
2006	0.20	%	348,296		22.077762		7,689,596	0.43	%	17.06	%
2005	0.20	%	458,988		18.860242		8,656,625	0.07	%	2.87	%
2004	0.20	%	271,422		18.334546		4,976,399	0.00	%	17.06	%
2003	0.20	%	234,794		15.661984		3,677,340	0.00	%	56.54	%
Nationwide VIT – Multi-Manager Small Company Fund – Class I
2007	0.20	%	773,666		17.899968		13,848,597	0.09	%	1.93	%
2006	0.20	%	730,292		17.561515		12,825,034	0.10	%	11.82	%
2005	0.20	%	1,146,078		15.705843		18,000,121	0.00	%	12.09	%
2004	0.20	%	346,438		14.011465		4,854,104	0.00	%	18.78	%
2003	0.20	%	126,604		11.795728		1,493,386	0.00	%	40.73	%
Nationwide VIT – Nationwide Fund – Class I
2007	0.20	%	50,032		13.361574		668,506	1.03	%	7.96	%
2006	0.20	%	49,380		12.375964		611,125	1.09	%	13.40	%
2005	0.20	%	56,248		10.913424		613,858	1.00	%	7.23	%
2004	0.20	%	32,724		10.177848		333,060	1.30	%	9.53	%
2003	0.20	%	20,659		9.291410		191,951	0.59	%	27.26	%
Nationwide VIT – Nationwide Leaders Fund – Class I
2004	0.20	%	3,700		12.522767		46,334	0.48	%	18.56	%
2003	0.20	%	1,086		10.562758		11,471	0.15	%	25.13	%
Nationwide VIT – U.S. Growth Leaders Fund – Class I
2004	0.20	%	8,230		13.993330		115,165	0.00	%	12.18	%
2003	0.20	%	5,224		12.473517		65,162	0.00	%	51.83	%

(Continued)

93

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Nationwide VIT – Van Kampen Comstock Value Fund – Class I
2004	0.20	%	49,480	$	10.312567	$	510,266	1.39	%	17.26	%
2003	0.20	%	7,421		8.794319		65,263	1.34	%	31.17	%
Nationwide VIT – Van Kampen Multi Sector Bond Fund – Class I
2007	0.20	%	70,520		15.245098		1,075,084	4.18	%	4.41	%
2006	0.20	%	57,084		14.600569		833,459	4.07	%	4.63	%
2005	0.20	%	114,922		13.954609		1,603,692	3.99	%	1.98	%
2004	0.20	%	13,584		13.684149		185,885	4.55	%	6.32	%
2003	0.20	%	9,884		12.870615		127,213	5.42	%	11.89	%
Neuberger Berman AMT – Fasciano Portfolio – S Class Shares
2007	0.20	%	13,934		15.176941		211,475	0.00	%	0.31	%
2006	0.20	%	11,666		15.129543		176,501	0.00	%	5.04	%
2005	0.20	%	9,828		14.403227		141,555	0.00	%	2.69	%
2004	0.20	%	4,062		14.025658		56,972	0.00	%	11.65	%
2003	0.20	%	1,829		12.561832		22,976	0.00	%	24.81	%
Neuberger Berman AMT – Guardian Portfolio – I Class Shares
2005	0.20	%	234,680		12.237616		2,871,924	0.15	%	8.18	%
2004	0.20	%	19,660		11.312789		222,409	0.12	%	15.58	%
2003	0.20	%	30,298		9.787595		296,545	0.89	%	31.50	%
Neuberger Berman AMT – Mid-Cap Growth Portfolio – I Class Shares
2007	0.20	%	38,324		13.348628		511,573	0.00	%	22.28	%
2006	0.20	%	41,698		10.916267		455,187	0.00	%	14.47	%
2005	0.20	%	23,118		9.536717		220,470	0.00	%	13.51	%
2004	0.20	%	470,456		8.401327		3,952,455	0.00	%	16.08	%
2003	0.20	%	274,225		7.237810		1,984,788	0.00	%	27.81	%
Neuberger Berman AMT – Partners Portfolio – Class I
2004	0.20	%	229,766		12.443485		2,859,090	0.01	%	18.74	%
2003	0.20	%	14,991		10.479833		157,103	0.00	%	34.82	%
Oppenheimer VAF – Capital Appreciation Fund – Non-Service Shares
2007	0.20	%	1,732,160		11.804408		20,447,123	0.22	%	13.92	%
2006	0.20	%	1,641,104		10.362024		17,005,159	0.38	%	7.73	%
2005	0.20	%	1,970,560		9.618219		18,953,278	0.91	%	4.89	%
2004	0.20	%	1,451,308		9.169906		13,308,358	0.31	%	6.72	%
2003	0.20	%	710,846		8.592296		6,107,799	0.38	%	30.68	%
Oppenheimer VAF – Global Securities Fund – Non-Service Shares
2007	0.20	%	664,384		15.781314		10,484,853	1.33	%	6.11	%
2006	0.20	%	578,604		14.873215		8,605,702	1.07	%	17.46	%
2005	0.20	%	1,091,788		12.662678		13,824,960	1.00	%	14.08	%
2004	0.20	%	342,972		11.099865		3,806,943	1.15	%	18.92	%
2003	0.20	%	78,177		9.333505		729,665	0.73	%	42.73	%
Oppenheimer VAF – Main Street® – Non-Service Shares
2007	0.20	%	333,966		12.973942		4,332,856	1.00	%	4.21	%
2006	0.20	%	184,798		12.449315		2,300,609	1.10	%	14.80	%
2005	0.20	%	185,032		10.844763		2,006,628	1.37	%	5.76	%
2004	0.20	%	86,940		10.253671		891,454	0.83	%	9.24	%
2003	0.20	%	50,314		9.386344		472,265	0.90	%	26.47	%
Oppenheimer VAF – Mid Cap Fund – Non-Service Shares
2007	0.20	%	121,920		9.293377		1,133,049	0.00	%	6.12	%
2006	0.20	%	106,664		8.757520		934,112	0.00	%	2.75	%
2005	0.20	%	454,650		8.523068		3,875,013	0.00	%	12.10	%
2004	0.20	%	260,230		7.602891		1,978,500	0.00	%	19.54	%
2003	0.20	%	163,694		6.360255		1,041,136	0.00	%	25.34	%
PIMCO VIT – Low Duration Portfolio – Administrative Shares
2007	0.20	%	1,869,506		11.854696		22,162,425	4.75	%	7.16	%
2006	0.20	%	1,775,448		11.062747		19,641,332	4.19	%	3.75	%
2005	0.20	%	1,845,738		10.662435		19,680,061	2.71	%	0.80	%
2004	0.20	%	2,001,144		10.577591		21,167,283	1.29	%	1.64	%
2003	0.20	%	1,032,781		10.407346		10,748,509	1.22	%	2.14	%

(Continued)

94

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
PIMCO VIT – Real Return Portfolio – Administrative Shares
2007	0.20	%	777,912	$	13.840237	$	10,766,486	4.64	%	10.42	%
2006	0.20	%	672,656		12.533792		8,430,930	4.26	%	0.54	%
2005	0.20	%	628,146		12.466336		7,830,679	2.85	%	1.87	%
2004	0.20	%	225,144		12.237557		2,755,213	1.03	%	8.67	%
2003	0.20	%	41,728		11.260965		469,898	2.35	%	8.64	%
PIMCO VIT – Total Return Portfolio – Administrative Shares
2007	0.20	%	3,931,096		13.037033		51,249,828	4.81	%	8.52	%
2006	0.20	%	3,889,630		12.013005		46,726,145	4.42	%	3.64	%
2005	0.20	%	3,110,384		11.591132		36,052,872	3.47	%	2.22	%
2004	0.20	%	1,390,690		11.339186		15,769,293	1.92	%	4.67	%
2003	0.20	%	805,938		10.833078		8,730,789	2.71	%	4.83	%
Pioneer VCT – Pioneer High Yield Portfolio – Class I Shares
2007	0.20	%	507,564		17.249965		8,755,461	5.36	%	5.71	%
2006	0.20	%	467,554		16.318486		7,629,773	5.53	%	8.29	%
2005	0.20	%	438,236		15.069867		6,604,158	5.49	%	1.74	%
2004	0.20	%	41,538		14.811836		615,254	5.59	%	7.85	%
2003	0.20	%	38,729		13.734162		531,910	5.84	%	32.52	%
Royce Capital Fund – Micro-Cap Portfolio
2007	0.20	%	516,162		23.884685		12,328,367	1.50	%	3.77	%
2006	0.20	%	487,556		23.017122		11,222,136	0.17	%	20.83	%
2005	0.20	%	516,002		19.049333		9,829,494	0.60	%	11.39	%
2004	0.20	%	251,888		17.101898		4,307,763	0.00	%	13.62	%
2003	0.20	%	58,726		15.052067		883,948	0.00	%	48.87	%
T. Rowe Price Equity Income Portfolio – II
2007	0.20	%	1,884,266		18.226974		34,344,467	1.51	%	2.82	%
2006	0.20	%	1,955,804		17.726578		34,669,712	1.35	%	18.41	%
2005	0.20	%	1,993,558		14.970390		29,844,341	1.39	%	3.49	%
2004	0.20	%	1,400,944		14.465784		20,265,753	1.46	%	14.39	%
2003	0.20	%	546,267		12.646299		6,908,256	1.80	%	24.92	%
T. Rowe Price Mid-Cap Growth Portfolio – II
2007	0.20	%	283,588		23.610164		6,695,559	0.00	%	16.99	%
2006	0.20	%	288,630		20.181467		5,824,977	0.00	%	6.17	%
2005	0.20	%	626,894		19.008705		11,916,443	0.00	%	14.21	%
2004	0.20	%	835,584		16.643864		13,907,346	0.00	%	17.82	%
2003	0.20	%	473,916		14.126799		6,694,916	0.00	%	37.82	%
T. Rowe Price New America Growth Portfolio
2007	0.20	%	299,098		13.707959		4,100,023	0.00	%	13.55	%
2006	0.20	%	301,726		12.072027		3,642,444	0.04	%	7.12	%
2005	0.20	%	690,950		11.269904		7,786,940	0.00	%	4.26	%
2004	0.20	%	222,430		10.808909		2,404,226	0.00	%	8.09	% 05/03/04
The Dreyfus Socially Responsible Growth Fund, Inc. – Initial Shares
2004	0.20	%	29,340		7.311886		214,531	0.40	%	6.00	%
2003	0.20	%	15,093		6.898125		104,113	0.11	%	25.75	%
Turner GVIT Growth Focus Fund – Class I
2003	0.20	%	17,434		3.315211		57,797	0.00	%	50.66	%
Van Eck Worldwide Insurance Trust – Emerging Markets Fund – Initial Class
2007	0.20	%	66,494		45.090153		2,998,225	0.40	%	37.34	%
2006	0.20	%	46,954		32.831467		1,541,569	0.56	%	39.21	%
2005	0.20	%	45,066		23.583541		1,062,816	0.71	%	31.73	%
2004	0.20	%	120,164		17.902527		2,151,239	0.53	%	25.64	%
2003	0.20	%	6,811		14.249147		97,051	0.11	%	53.88	%
Van Eck Worldwide Insurance Trust – Hard Assets Fund – Initial Class
2007	0.20	%	81,432		47.420563		3,861,551	0.11	%	45.06	%
2006	0.20	%	59,788		32.689202		1,954,422	0.06	%	24.24	%
2005	0.20	%	52,740		26.310503		1,387,616	0.31	%	51.37	%
2004	0.20	%	70,582		17.381825		1,226,844	0.31	%	23.98	%
2003	0.20	%	17,418		14.048159		244,691	0.41	%	44.79	%

(Continued)

95

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I
2007	0.20	%	79,524	$	22.841354	$	1,816,436	7.13	%	6.32	%
2006	0.20	%	74,878		21.483999		1,608,679	10.28	%	10.59	%
2005	0.20	%	227,212		19.427363		4,414,130	7.14	%	12.03	%
2004	0.20	%	105,242		17.341685		1,825,074	7.52	%	9.84	%
2003	0.20	%	3,595		15.787831		56,757	0.00	%	27.61	%
Van Kampen UIF – Mid Cap Growth Portfolio – class I
2007	0.20	%	20,784		11.312053		235,110	0.00	%	22.42	%
2006	0.20	%	26,838		9.240416		247,994	0.00	%	9.06	%
2005	0.20	%	20,382		8.473005		172,697	0.00	%	17.33	%
2004	0.20	%	98,272		7.221303		709,652	0.00	%	21.35	%
2003	0.20	%	70,714		5.950642		420,794	0.00	%	41.48	%
Van Kampen UIF – U.S. Real Estate Portfolio – Class I
2007	0.20	%	249,376		28.623844		7,138,100	1.11	%	-17.24	%
2006	0.20	%	324,820		34.585436		11,234,041	1.07	%	37.77	%
2005	0.20	%	250,510		25.103798		6,288,752	1.19	%	16.82	%
2004	0.20	%	98,428		21.489618		2,115,180	1.61	%	36.12	%
2003	0.20	%	40,136		15.786980		633,626	0.00	%	37.24	%
Wells Fargo AVT – Opportunity FundSM
2007	0.20	%	154,478		14.332457		2,214,049	0.61	%	6.42	%
2006	0.20	%	199,708		13.467901		2,689,648	0.00	%	12.00	%
2005	0.20	%	360,812		12.025433		4,338,921	0.00	%	7.67	%
2004	0.20	%	266,180		11.168856		2,972,926	0.00	%	17.98	%
2003	0.20	%	202,631		9.466409		1,918,188	0.08	%	36.73	%
The BEST of AMERICA® America’s FUTURE Life SeriesSM Reduced Fee Tier (0.25%)
AIM VIF – Basic Value Fund – Series I
2007	0.25	%	74,740		17.537474		1,310,751	0.59	%	1.29	%
2006	0.25	%	70,154		17.314284		1,214,666	0.42	%	12.92	%
2005	0.25	%	54,050		15.332927		828,745	0.09	%	5.47	%
2004	0.25	%	98,126		14.537319		1,426,489	0.00	%	10.79	%
2003	0.25	%	1,947		13.121262		25,547	0.06	%	33.29	%
AIM VIF – Capital Appreciation Fund – Series I
2003	0.25	%	2,553		13.251011		33,830	0.00	%	35.02	%
AIM VIF – Capital Development Fund – Series I
2007	0.25	%	191,752		21.450254		4,113,129	0.00	%	10.57	%
2006	0.25	%	158,748		19.400361		3,079,769	0.00	%	16.23	%
2005	0.25	%	93,372		16.691371		1,558,507	0.00	%	9.33	%
2004	0.25	%	27,246		15.266666		415,956	0.00	%	15.21	%
AIM VIF – International Growth Fund – Series I
2007	0.25	%	903,590		20.523294		18,544,643	0.53	%	14.43	%
2006	0.25	%	447,740		17.934952		8,030,195	0.97	%	27.91	%
2005	0.25	%	202,258		14.021093		2,835,878	1.14	%	17.63	%
2004	0.25	%	26,402		11.919243		314,692	1.36	%	19.19	% 05/03/04
AllianceBernstein VPS – Growth and Income Portfolio – Class A
2007	0.25	%	720,052		18.887703		13,600,128	1.44	%	4.85	%
2006	0.25	%	422,112		18.013258		7,603,612	1.37	%	16.99	%
2005	0.25	%	369,126		15.396687		5,683,317	1.48	%	4.61	%
2004	0.25	%	426,728		14.718823		6,280,934	0.92	%	11.18	%
2003	0.25	%	278,219		13.238290		3,683,144	0.51	%	32.17	%
AllianceBernstein VPS – International Value Portfolio – Class A
2007	0.25	%	1,304,024		11.954073		15,588,398	1.13	%	5.57	%
2006	0.25	%	343,264		11.322832		3,886,721	0.57	%	13.23	% 05/01/06
AllianceBernstein VPS – Small/Mid Cap Value Portfolio – Class A
2007	0.25	%	62,706		20.240586		1,269,206	0.89	%	1.45	%

(Continued)

96

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
American Century VP – Income & Growth Fund – Class I
2007	0.25	%	200,072	$	13.156950	$	2,632,337	1.91	%	-0.32	%
2006	0.25	%	284,862		13.198939		3,759,876	1.85	%	16.80	%
2005	0.25	%	284,088		11.300886		3,210,446	1.94	%	4.37	%
2004	0.25	%	368,640		10.827688		3,991,519	1.37	%	12.71	%
2003	0.25	%	225,657		9.606659		2,167,810	1.28	%	29.03	%
American Century VP – International Fund – Class I
2007	0.25	%	760,806		13.934456		10,601,418	0.70	%	17.76	%
2006	0.25	%	987,980		11.832909		11,690,677	1.58	%	24.71	%
2005	0.25	%	882,458		9.488028		8,372,786	1.25	%	12.97	%
2004	0.25	%	923,768		8.398563		7,758,324	0.56	%	14.64	%
2003	0.25	%	674,427		7.326221		4,941,001	0.73	%	24.20	%
American Century VP – Mid Cap Value Fund – Class I
2007	0.25	%	48		13.218157		634	0.74	%	-2.55	%
American Century VP – Ultra® Fund – Class I
2007	0.25	%	27,300		13.101110		357,660	0.00	%	20.71	%
2006	0.25	%	24,306		10.853176		263,797	0.00	%	-3.52	%
2005	0.25	%	252,658		11.248731		2,842,082	0.00	%	1.91	%
2004	0.25	%	212,496		11.037791		2,345,486	0.00	%	10.40	%
2003	0.25	%	138,103		9.998079		1,380,765	0.00	%	24.59	%
American Century VP – Value Fund – Class I
2007	0.25	%	644,276		17.845573		11,497,474	1.58	%	-5.38	%
2006	0.25	%	552,364		18.859509		10,417,314	1.41	%	18.36	%
2005	0.25	%	496,994		15.934364		7,919,283	0.83	%	4.77	%
2004	0.25	%	351,012		15.208626		5,338,410	0.97	%	14.05	%
2003	0.25	%	248,298		13.335325		3,311,135	1.04	%	28.64	%
American Century VP – VistaSM Fund – Class I
2007	0.25	%	48,218		17.350253		836,594	0.00	%	39.42	%
2006	0.25	%	4,932		12.444525		61,376	0.00	%	8.74	%
2005	0.25	%	248		11.444645		2,838	0.00	%	14.45	% 05/02/05
BlackRock International Index Portfolio – Class II
2006	0.25	%	82,570		14.583459		1,204,156	5.83	%	25.37	%
2005	0.25	%	732		11.632654		8,515	1.76	%	16.33	% 05/02/05
BlackRock Large Cap Core V.I. Fund – Class II
2007	0.25	%	230,248		14.276667		3,287,174	1.23	%	7.86	%
2006	0.25	%	131,296		13.236885		1,737,950	0.79	%	14.33	%
2005	0.25	%	101,208		11.577932		1,171,779	0.74	%	15.78	% 05/02/05
Calvert Variable Series Inc. – Social Equity Portfolio
2007	0.25	%	4,512		16.829986		75,937	0.00	%	9.71	%
2006	0.25	%	7,002		15.339931		107,410	0.00	%	9.78	%
2005	0.25	%	1,152		13.973029		16,097	0.06	%	4.28	%
2004	0.25	%	826		13.399142		11,068	0.08	%	6.89	%
Credit Suisse Trust – Global Small Cap Portfolio
2007	0.25	%	6,308		10.452361		65,933	0.00	%	-4.20	%
2006	0.25	%	9,586		10.910325		104,586	0.00	%	12.92	%
2005	0.25	%	15,838		9.661761		153,023	0.00	%	15.85	%
2004	0.25	%	25,520		8.339563		212,826	0.00	%	17.69	%
2003	0.25	%	30,888		7.085747		218,865	0.00	%	47.29	%
Credit Suisse Trust – International Focus Portfolio
2007	0.25	%	10,580		15.584704		164,886	1.09	%	16.30	%
2006	0.25	%	7,190		13.400060		96,346	1.01	%	18.36	%
2005	0.25	%	7,410		11.321642		83,893	0.88	%	17.15	%
2004	0.25	%	13,758		9.664537		132,965	0.99	%	14.46	%
2003	0.25	%	17,161		8.443905		144,906	0.49	%	32.76	%
Credit Suisse Trust – Large Cap Value Portfolio
2007	0.25	%	3,478		14.931536		51,932	1.30	%	1.53	%
2006	0.25	%	5,326		14.706419		78,326	0.89	%	19.05	%
2005	0.25	%	2,276		12.352874		28,115	0.73	%	7.87	%
2004	0.25	%	16,952		11.451229		194,121	0.58	%	11.07	%
2003	0.25	%	15,477		10.310367		159,574	0.76	%	24.85	%

(Continued)

97

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Dreyfus IP – Mid Cap Stock Portfolio – Initial Shares
2007	0.25	%	30,302	$	17.729117	$	537,228	0.45	%	1.24	%
2006	0.25	%	38,318		17.511529		671,007	0.37	%	7.48	%
2005	0.25	%	20,998		16.292721		342,115	0.02	%	8.90	%
2004	0.25	%	41,246		14.961281		617,093	0.43	%	14.19	%
2003	0.25	%	647		13.102225		8,477	1.02	%	31.39	%
Dreyfus IP – Small Cap Stock Index Portfolio – Service Shares
2007	0.25	%	418,268		15.488598		6,478,385	0.38	%	-0.90	%
2006	0.25	%	247,338		15.629868		3,865,860	0.38	%	14.13	%
2005	0.25	%	162,720		13.695264		2,228,493	0.00	%	6.97	%
2004	0.25	%	376,014		12.803427		4,814,268	0.57	%	21.58	%
2003	0.25	%	145,429		10.530847		1,531,491	0.27	%	37.44	%
Dreyfus Stock Index Fund, Inc. – Initial Shares
2007	0.25	%	10,532,952		12.166992		128,154,343	1.72	%	4.99	%
2006	0.25	%	8,834,012		11.588607		102,373,893	1.64	%	15.21	%
2005	0.25	%	8,079,650		10.058674		81,270,565	1.63	%	4.43	%
2004	0.25	%	5,809,448		9.631920		55,956,138	1.82	%	10.36	%
2003	0.25	%	4,843,218		8.727408		42,268,740	1.54	%	28.04	%
Dreyfus VIF – Appreciation Portfolio – Initial Shares
2007	0.25	%	947,616		12.301651		11,657,241	1.56	%	6.86	%
2006	0.25	%	752,594		11.511538		8,663,514	1.53	%	16.19	%
2005	0.25	%	561,480		9.907772		5,563,016	0.02	%	4.12	%
2004	0.25	%	555,430		9.515935		5,285,436	1.67	%	4.78	%
2003	0.25	%	487,461		9.081512		4,426,883	1.18	%	20.87	%
Dreyfus VIF – International Value Portfolio – Initial Shares
2007	0.25	%	809,738		21.780049		17,636,133	1.57	%	3.89	%
2006	0.25	%	931,538		20.964071		19,528,829	1.25	%	22.29	%
2005	0.25	%	640,638		17.142660		10,982,239	0.00	%	11.61	%
2004	0.25	%	481,030		15.359280		7,388,274	1.23	%	19.72	%
2003	0.25	%	561,722		12.829044		7,206,356	2.67	%	36.02	%
DWS Variable Series II – Dreman High Return Equity VIP – Class B
2007	0.25	%	66,654		10.983369		732,085	0.92	%	-2.43	%
2006	0.25	%	15,180		11.257266		170,885	0.00	%	12.57	% 05/01/06
Federated IS – Quality Bond Fund II – Primary Shares
2007	0.25	%	776,642		15.183610		11,792,229	5.83	%	5.12	%
2006	0.25	%	1,173,262		14.444216		16,946,850	5.17	%	3.89	%
2005	0.25	%	1,963,430		13.902748		27,297,073	3.55	%	1.05	%
2004	0.25	%	1,438,890		13.758938		19,797,598	3.92	%	3.36	%
2003	0.25	%	204,710		13.311504		2,724,998	3.30	%	4.38	%
Fidelity® VIP – Equity-Income Portfolio – Service Class
2007	0.25	%	1,729,636		15.073906		26,072,370	1.67	%	1.16	%
2006	0.25	%	1,907,206		14.900594		28,418,502	3.15	%	19.78	%
2005	0.25	%	1,459,748		12.439919		18,159,147	1.56	%	5.49	%
2004	0.25	%	1,061,120		11.792032		12,512,761	1.39	%	11.10	%
2003	0.25	%	374,570		10.613484		3,975,493	1.66	%	29.89	%
Fidelity® VIP – Growth Portfolio – Service Class
2007	0.25	%	1,845,202		11.095199		20,472,883	0.62	%	26.55	%
2006	0.25	%	2,159,692		8.767341		18,934,756	0.28	%	6.47	%
2005	0.25	%	2,214,058		8.234853		18,232,442	0.41	%	5.41	%
2004	0.25	%	1,835,224		7.812236		14,337,203	0.16	%	3.01	%
2003	0.25	%	585,819		7.584268		4,443,008	0.18	%	32.45	%
Fidelity® VIP – High Income Portfolio – Service Class
2007	0.25	%	178,522		14.897237		2,659,485	8.58	%	2.40	%
2006	0.25	%	195,198		14.548271		2,839,793	7.58	%	10.90	%
2005	0.25	%	195,986		13.118317		2,571,006	14.70	%	2.27	%
2004	0.25	%	593,920		12.827432		7,618,468	8.03	%	9.19	%
2003	0.25	%	93,070		11.747355		1,093,326	6.36	%	26.65	%

(Continued)

98

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Fidelity® VIP – Overseas Portfolio – Service Class
2007	0.25	%	1,540,530	$	16.509660	$	25,433,627	3.19	%	16.91	%
2006	0.25	%	1,070,198		14.121395		15,112,689	0.84	%	17.65	%
2005	0.25	%	742,572		12.002567		8,912,770	0.56	%	18.67	%
2004	0.25	%	460,116		10.113816		4,653,529	0.98	%	13.20	%
2003	0.25	%	301,169		8.934131		2,690,683	0.63	%	42.85	%
Fidelity® VIP II – Contrafund® Portfolio – Service Class
2007	0.25	%	3,212,196		18.283913		58,731,512	0.89	%	17.21	%
2006	0.25	%	2,614,782		15.598891		40,787,699	1.12	%	11.31	%
2005	0.25	%	1,766,496		14.013727		24,755,193	0.19	%	16.56	%
2004	0.25	%	970,084		12.023156		11,663,471	0.24	%	15.05	%
2003	0.25	%	964,994		10.450250		10,084,429	0.30	%	28.03	%
Fidelity® VIP II – Investment Grade Bond Portfolio – Service Class
2007	0.25	%	102,048		11.689304		1,192,870	3.80	%	3.95	%
2006	0.25	%	49,006		11.245144		551,080	3.34	%	4.04	%
2005	0.25	%	33,064		10.808463		357,371	2.69	%	1.83	%
Fidelity® VIP III – Growth Opportunities Portfolio – Service Class
2007	0.25	%	62,164		12.953846		805,263	0.00	%	22.73	%
2006	0.25	%	127,338		10.554406		1,343,977	0.69	%	5.04	%
2005	0.25	%	326,516		10.048055		3,280,851	0.84	%	8.59	%
2004	0.25	%	451,498		9.253175		4,177,790	0.48	%	6.79	%
2003	0.25	%	197,613		8.664666		1,712,251	0.59	%	29.34	%
Fidelity® VIP III – Mid Cap Portfolio – Service Class
2007	0.25	%	354,360		26.698163		9,460,761	0.72	%	15.20	%
2006	0.25	%	172,826		23.176101		4,005,433	0.23	%	12.31	%
2005	0.25	%	159,618		20.635857		3,293,854	0.00	%	17.91	%
Fidelity® VIP III – Value Strategies Portfolio – Service Class
2007	0.25	%	3,262		16.757189		54,662	0.83	%	5.33	%
2006	0.25	%	2,506		15.908520		39,867	0.49	%	15.91	%
2005	0.25	%	884		13.725157		12,133	0.00	%	2.30	%
2004	0.25	%	29,960		13.416717		401,965	0.00	%	13.70	%
2003	0.25	%	15,729		11.799819		185,599	0.00	%	57.40	%
Franklin Templeton VIP – Foreign Securities Fund – Class 2
2007	0.25	%	590,458		22.660573		13,380,117	1.86	%	15.17	%
2006	0.25	%	359,658		19.676237		7,076,716	1.24	%	21.14	%
2005	0.25	%	241,412		16.242222		3,921,067	1.12	%	9.89	%
2004	0.25	%	173,760		14.779865		2,568,149	1.11	%	18.23	%
2003	0.25	%	9,405		12.500683		117,569	1.96	%	31.88	%
Franklin Templeton VIP – Small Cap Value Securities Fund – Class 2
2007	0.25	%	317,232		12.898779		4,091,905	0.63	%	-2.62	%
2006	0.25	%	208,584		13.246445		2,762,996	0.76	%	16.69	%
2005	0.25	%	11,480		11.351855		130,319	0.00	%	13.52	% 05/02/05
Gartmore GVIT – Small Cap Growth Fund: Class I – Intial Funding by Depositor
2006	0.25	%	174,802		17.036832		2,978,072	0.00	%	2.95	%
2005	0.25	%	186,986		16.548582		3,094,353	0.00	%	7.82	%
2004	0.25	%	283,520		15.348222		4,351,528	0.00	%	13.13	%
2003	0.25	%	59,176		13.566592		802,817	0.00	%	33.93	%
Goldman Sachs VIT Mid Cap Value Fund
2007	0.25	%	1,727,904		21.334874		36,864,614	0.81	%	2.94	%
2006	0.25	%	1,231,810		20.724643		25,528,822	0.98	%	15.87	%
2005	0.25	%	792,502		17.885426		14,174,236	0.60	%	12.54	%
2004	0.25	%	315,450		15.891856		5,013,086	0.74	%	25.57	%
2003	0.25	%	259,089		12.655709		3,278,955	1.72	%	28.07	%
Janus Aspen Series – Balanced Portfolio – Service Shares
2007	0.25	%	193,582		16.007046		3,098,676	2.47	%	10.01	%
2006	0.25	%	83,320		14.550491		1,212,347	1.99	%	10.14	%
2005	0.25	%	53,532		13.210934		707,208	2.04	%	7.39	%
2004	0.25	%	53,754		12.301545		661,257	2.45	%	8.02	%
2003	0.25	%	14,950		11.387925		170,249	2.34	%	13.44	%

(Continued)

99

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Janus Aspen Series – Forty Portfolio – Service Shares
2007	0.25	%	1,592,000	$	12.630653	$	20,108,000	0.19	%	36.29	%
2006	0.25	%	1,255,440		9.267372		11,634,630	0.14	%	8.84	%
2005	0.25	%	1,090,640		8.514303		9,286,039	0.01	%	12.28	%
2004	0.25	%	956,584		7.583386		7,254,146	0.02	%	17.67	%
2003	0.25	%	677,613		6.444456		4,366,847	0.25	%	19.93	%
Janus Aspen Series – Global Technology Portfolio – Service Shares
2007	0.25	%	291,228		5.152101		1,500,436	0.34	%	21.39	%
2006	0.25	%	770,748		4.244167		3,271,183	0.00	%	7.56	%
2005	0.25	%	229,560		3.945872		905,814	0.00	%	11.27	%
2004	0.25	%	204,340		3.546168		724,624	0.00	%	0.32	%
2003	0.25	%	97,833		3.535026		345,842	0.00	%	46.11	%
Janus Aspen Series – International Growth Portfolio – Service Shares
2007	0.25	%	1,103,674		18.234395		20,124,828	0.44	%	27.70	%
2006	0.25	%	1,109,576		14.279422		15,844,104	1.89	%	46.26	%
2005	0.25	%	882,786		9.762789		8,618,453	1.05	%	31.61	%
2004	0.25	%	680,002		7.417926		5,044,205	0.85	%	18.39	%
2003	0.25	%	92,562		6.265664		579,962	1.02	%	34.20	%
JPMorgan Insurance Trust – Diversified Mid Cap Growth Portfolio 1
2007	0.25	%	100,032		20.668909		2,067,552	0.00	%	16.94	%
2006	0.25	%	62,906		17.674125		1,111,809	0.00	%	11.11	%
2005	0.25	%	75 420		15 906622		1,199,677	0.00	%	10.82	%
2004	0.25	%	82,778		14.354104		1,188,204	0.00	%	12.34	%
2003	0.25	%	6,068		12.777560		77,534	0.00	%	26.83	%
JPMorgan Insurance Trust – Diversified Mid Cap Value Portfolio 1
2006	0.25	%	730		19.287150		14,080	1.18	%	16.43	%
2005	0.25	%	10,644		16.565444		176,323	0.60	%	9.48	%
2004	0.25	%	22,074		15.130897		333,999	0.58	%	15.11	%
2003	0.25	%	1,068		13.144807		14,039	0.57	%	32.42	%
Lincoln VIP – Baron Growth Opportunies Funds – Service Class
2007	0.25	%	312,238		19.321952		6,033,048	0.00	%	3.16	%
2006	0.25	%	186,980		18.729880		3,502,113	0.00	%	15.23	%
2005	0.25	%	304,012		16.253697		4,941,319	0.00	%	3.11	%
2004	0.25	%	84,614		15.763932		1,333,849	0.00	%	25.33	%
2003	0.25	%	17,272		12.578424		217,255	0.00	%	29.69	%
Lord Abbett Series Fund, Inc. – Mid – Cap Value Portfolio – Class VC
2007	0.25	%	87,970		12.658811		1,113,596	0.59	%	0.33	%
2006	0.25	%	45,876		12.617407		578,836	0.89	%	11.95	%
2005	0.25	%	19,122		11.270434		215,513	0.52	%	12.70	% 05/02/05
MFS VIT – Research International Series – Service Class
2007	0.25	%	128		10.563577		1,352	0.00	%	5.64	% 05/01/07
Nationwide GVIT Strategic Value Fund – Class I
2003	0.25	%	22,022		10.567653		232,721	0.04	%	38.46	%
Nationwide VIT – Federated High Income Bond Fund – Class I
2007	0.25	%	419,204		17.115297		7,174,801	7.29	%	2.88	%
2006	0.25	%	370,802		16.636894		6,168,994	7.41	%	10.33	%
2005	0.25	%	204,814		15.079557		3,088,504	6.92	%	2.13	%
2004	0.25	%	157,482		14.765731		2,325,337	7.58	%	9.82	%
2003	0.25	%	33,606		13.445225		451,840	7.99	%	21.97	%
Nationwide VIT – Gartmore Emerging Markets Fund – Class I
2007	0.25	%	406,344		36.226972		14,720,613	0.71	%	45.21	%
2006	0.25	%	300,448		24.947405		7,495,398	0.71	%	36.38	%
2005	0.25	%	198,760		18.292860		3,635,889	0.60	%	32.31	%
2004	0.25	%	68,036		13.826171		940,677	1.04	%	20.44	%
2003	0.25	%	14,303		11.479519		164,192	0.61	%	64.85	%

(Continued)

100

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Nationwide VIT – Gartmore Global Utilities Fund – Class l
2007	0.25	%	27,478	$	24.329252	$	668,519	2.57	%	20.13	%
2006	0.25	%	20,796		20.252066		421,162	2.84	%	37.22	%
2005	0.25	%	15,934		14.758947		235,169	2.09	%	6.12	%
2004	0.25	%	17,668		13.907406		245,716	1.64	%	29.64	%
2003	0.25	%	1,187		10.727488		12,734	1.02	%	23.74	%
Nationwide VIT – Gartmore International Growth Fund – Class I
2007	0.25	%	36,532		16.769826		612,635	0.38	%	26.83	%
2006	0.25	%	55,980		13.222655		740,204	0.84	%	32.63	%
2005	0.25	%	54,480		9.969281		543,126	1.10	%	29.89	%
2004	0.25	%	28,960		7.675467		222,282	0.85	%	13.91	%
2003	0.25	%	4,806		6.738255		32,384	0.00	%	35.28	%
Nationwide VIT – Gartmore Worldwide Leaders Fund – Class I
2007	0.25	%	14,992		17.410223		261,014	0.41	%	19.60	%
2006	0.25	%	13,250		14.557271		192,884	0.85	%	25.57	%
2005	0.25	%	12,984		11.593174		150,526	1.11	%	19.04	%
2004	0.25	%	34,068		9.738860		331,783	0.00	%	15.38	%
2003	0.25	%	34,022		8.440937		287,178	0.00	%	35.72	%
Nationwide VIT – Global Financial Services Fund – Class I
2007	0.25	%	38,992		19.345657		754,326	3.45	%	-1.30	%
2006	0.25	%	30,252		19.600661		592,959	1.89	%	20.02	%
2005	0.25	%	24,048		16.330978		392,727	2.00	%	10.87	%
2004	0.25	%	8,572		14.729262		126,259	1.37	%	20.69	%
2003	0.25	%	958		12.207124		11,694	1.08	%	41.10	%
Nationwide VIT – Global Health Sciences Fund – Class l
2007	0.25	%	57,456		15.279611		877,905	0.07	%	12.88	%
2006	0.25	%	29,942		13.536569		405,312	0.00	%	2.45	%
2005	0.25	%	27,596		13.212593		364,615	0.00	%	8.17	%
2004	0.25	%	24,814		12.214711		303,096	0.00	%	7.59	%
2003	0.25	%	9,013		11.352997		102,325	0.00	%	36.35	%
Nationwide VIT – Global Technology and Communications Fund – Class I
2007	0.25	%	519,226		4.165338		2,162,752	0.00	%	19.79	%
2006	0.25	%	446,826		3.477132		1,553,673	0.00	%	10.89	%
2005	0.25	%	262,362		3.135604		822,663	0.00	%	-0.76	%
2004	0.25	%	674,980		3.159750		2,132,768	0.00	%	4.05	%
2003	0.25	%	118,132		3.036698		358,731	0.00	%	54.84	%
Nationwide VIT – Government Bond Fund – Class I
2007	0.25	%	3,004,026		14.352245		43,114,517	4.48	%	6.89	%
2006	0.25	%	3,008,954		13.427221		40,401,890	3.95	%	3.08	%
2005	0.25	%	3,496,292		13.025536		45,541,077	3.71	%	3.01	%
2004	0.25	%	2,572,680		12.645377		32,532,509	5.38	%	3.00	%
2003	0.25	%	1,556,780		12.276554		19,111,894	3.25	%	1.75	%
Nationwide VIT – Growth Fund – Class I
2007	0.25	%	8,184		9.546438		78,128	0.18	%	19.24	%
2006	0.25	%	45,366		8.005797		363,191	0.05	%	5.90	%
2005	0.25	%	40,952		7.559516		309,577	0.08	%	6.24	%
2004	0.25	%	73,454		7.115834		522,686	0.34	%	7.89	%
2003	0.25	%	76,188		6.595662		502,510	0.02	%	32.41	%
Nationwide VIT – International Index Fund – Class II
2007	0.25	%	164,488		10.117465		1,664,202	1.19	%	1.17	% 05/01/07
Nationwide VIT – Investor Destinations Aggressive Fund – Class II
2007	0.25	%	160,792		16.497208		2,652,619	2.03	%	5.69	%
2006	0.25	%	77,654		15.608708		1,212,079	2.11	%	16.58	%
2005	0.25	%	24,354		13.389188		326,080	2.02	%	7.66	%
2004	0.25	%	14,712		12.436282		182,963	1.85	%	13.74	%
2003	0.25	%	4,309		10.933839		47,114	1.57	%	31.54	%

(Continued)

101

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Nationwide VIT – Investor Destinations Conservative Fund – Class II
2007	0.25	%	332,180	$	12.924331	$	4,293,204	3.54	%	5.12	%
2006	0.25	%	287,996		12.295233		3,540,978	3.23	%	5.90	%
2005	0.25	%	4,440		11.610294		51,550	2.49	%	3.05	%
2004	0.25	%	6,398		11.266714		72,084	2.49	%	4.39	%
2003	0.25	%	929		10.792806		10,027	2.59	%	7.64	%
Nationwide VIT – Investor Destinations Moderate Fund – Class II
2007	0.25	%	341,144		14.677673		5,007,200	2.71	%	5.39	%
2006	0.25	%	161,088		13.926464		2,243,386	2.47	%	11.08	%
2005	0.25	%	31,934		12.537840		400,383	2.39	%	5.08	%
2004	0.25	%	18,974		11.931529		226,389	2.21	%	9.26	%
2003	0.25	%	7,829		10.920096		85,493	2.05	%	19.75	%
Nationwide VIT – Investor Destinations Moderately Aggressive Fund – Class II
2007	0.25	%	236,756		15.818947		3,745,231	2.31	%	5.88	%
2006	0.25	%	84,106		14.939913		1,256,536	2.25	%	14.26	%
2005	0.25	%	80,236		13.075926		1,049,160	2.19	%	6.81	%
2004	0.25	%	90,230		12.242773		1,104,665	2.01	%	11.81	%
2003	0.25	%	3,797		10.949354		41,575	1.61	%	26.33	%
Nationwide VIT – Investor Destinations Moderately Conservative Fund – Class II
2007	0.25	%	260,644		13.881453		3,618,117	3.18	%	5.59	%
2006	0.25	%	105,542		13.146115		1,387,467	2.84	%	8.15	%
2005	0.25	%	151,626		12.155154		1,843,037	2.78	%	4.23	%
2004	0.25	%	21,136		11.662359		246,496	2.38	%	6.89	%
2003	0.25	%	2,613		10.910488		28,509	2.33	%	13.41	%
Nationwide VIT – J.P. Morgan Balanced Fund – Class I
2007	0.25	%	182,240		13.002564		2,369,587	2.16	%	4.36	%
2006	0.25	%	257,054		12.459031		3,202,644	2.25	%	11.97	%
2005	0.25	%	234,374		11.127198		2,607,926	1.98	%	2.29	%
2004	0.25	%	138,252		10.878396		1,503,960	1.94	%	8.22	%
2003	0.25	%	86,171		10.052086		866,198	1.76	%	18.12	%
Nationwide VIT – Mid Cap Growth Fund – Class I
2007	0.25	%	111,508		10.396626		1,159,307	0.00	%	8.74	%
2006	0.25	%	154,712		9.560904		1,479,187	0.00	%	9.63	%
2005	0.25	%	161,102		8.720733		1,404,928	0.00	%	9.47	%
2004	0.25	%	989,792		7.966452		7,885,130	0.00	%	15.05	%
2003	0.25	%	74,105		6.924341		513,128	0.00	%	39.79	%
Nationwide VIT – Mid Cap Index Fund – Class I
2007	0.25	%	1,035,184		18.204864		18,845,384	1.35	%	7.29	%
2006	0.25	%	993,900		16.967969		16,864,464	1.14	%	9.62	%
2005	0.25	%	613,462		15.479497		9,496,083	1.04	%	11.82	%
2004	0.25	%	317,498		13.843332		4,395,230	0.56	%	15.44	%
2003	0.25	%	70,843		11.991494		849,513	0.50	%	34.31	%
Nationwide VIT – Money Market Fund – Class I
2007	0.25	%	839,752		11.813525		9,920,431	4.65	%	4.53	%
2006	0.25	%	906,990		11.301640		10,250,474	4.43	%	4.27	%
2005	0.25	%	997,352		10.838856		10,810,155	2.61	%	2.41	%
2004	0.25	%	877,048		10.583572		9,282,301	0.80	%	0.56	%
2003	0.25	%	2,168,315		10.524702		22,820,869	0.63	%	0.37	%
Nationwide VIT – Money Market Fund – Class V
2007	0.25	%	12,378,852		11.330392		140,257,246	4.74	%	4.60	%
2006	0.25	%	11,262,860		10.831867		121,997,802	4.63	%	4.35	%
2005	0.25	%	5,577,142		10.380057		57,891,052	2.74	%	2.49	%
2004	0.25	%	9,126,608		10.127388		92,428,700	0.91	%	0.64	%
2003	0.25	%	1,814,317		10.063117		18,257,684	0.70	%	0.45	%
Nationwide VIT – Multi-Manager Small Cap Growth Fund – Class I
2007	0.25	%	271,302		18.651020		5,060,059	0.00	%	9.47	%

(Continued)

102

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Nationwide VIT – Multi-Manager Small Cap Value Fund – Class I
2007	0.25	%	575,424	$	20.441984	$	11,762,808	1.13	%	-7.13	%
2006	0.25	%	667,586		22.010798		14,694,101	0.43	%	17.00	%
2005	0.25	%	848,398		18.812416		15,960,416	0.07	%	2.82	%
2004	0.25	%	557,634		18.297168		10,203,123	0.00	%	17.01	%
2003	0.25	%	258,610		15.637860		4,044,107	0.00	%	56.46	%
Nationwide VIT – Multi-Manager Small Company Fund – Class I
2007	0.25	%	1,805,786		17.836712		32,209,285	0.09	%	1.88	%
2006	0.25	%	1,848,548		17.508253		32,364,846	0.10	%	11.76	%
2005	0.25	%	1,912,752		15.666008		29,965,188	0.00	%	12.04	%
2004	0.25	%	766,554		13.982897		10,718,646	0.00	%	18.72	%
2003	0.25	%	492,798		11.777552		5,803,954	0.00	%	40.66	%
Nationwide VIT – Nationwide Fund – Class I
2007	0.25	%	52,394		13.314351		697,592	1.03	%	7.91	%
2006	0.25	%	236,736		12.338411		2,920,946	1.09	%	13.34	%
2005	0.25	%	230,206		10.885739		2,505,962	1.00	%	7.17	%
2004	0.25	%	200,466		10.157086		2,036,150	1.30	%	9.48	%
2003	0.25	%	49,376		9.277816		458,101	0.59	%	27.19	%
Nationwide VIT – Nationwide Leaders Fund – Class I
2007	0.25	%	3,872		17.726502		68,637	1.24	%	11.28	%
2006	0.25	%	2,392		15.929628		38,104	0.70	%	15.76	%
2005	0.25	%	8,298		13.761286		114,191	1.29	%	10.04	%
2004	0.25	%	13,762		12.506076		172,109	0.48	%	18.50	%
2003	0.25	%	1,148		10.553942		12,116	0.15	%	25.07	%
Nationwide VIT – U.S. Growth Leaders Fund – Class I
2007	0.25	%	71,458		18.966559		1,355,312	0.00	%	22.18	%
2006	0.25	%	93,502		15.523663		1,451,494	0.27	%	-0.54	%
2005	0.25	%	80,480		15.607398		1,256,083	0.00	%	11.68	%
2004	0.25	%	50,246		13.974657		702,171	0.00	%	12.13	%
2003	0.25	%	33,465		12.463103		417,078	0.00	%	51.76	%
Nationwide VIT – Van Kampen Comstock Value Fund – Class I
2007	0.25	%	48,922		12.068473		590,414	1.74	%	-2.46	%
2006	0.25	%	36,988		12.373114		457,657	1.73	%	15.62	%
2005	0.25	%	42,010		10.701838		449,584	1.61	%	3.99	%
2004	0.25	%	36,102		10.291496		371,544	1.39	%	17.21	%
2003	0.25	%	3,887		8.780739		34,131	1.34	%	31.11	%
Nationwide VIT – Van Kampen Multi Sector Bond Fund – Class I
2007	0.25	%	657,186		15.191219		9,983,456	4.18	%	4.36	%
2006	0.25	%	450,402		14.556279		6,556,177	4.07	%	4.58	%
2005	0.25	%	483,160		13.919206		6,725,204	3.99	%	1.93	%
2004	0.25	%	63,742		13.656231		870,475	4.55	%	6.27	%
2003	0.25	%	515,327		12.850783		6,622,355	5.42	%	11.84	%
Neuberger Berman AMT – Fasciano Portfolio – S Class Shares
2007	0.25	%	20,928		15.136586		316,778	0.00	%	0.26	%
2006	0.25	%	18,450		15.096902		278,538	0.00	%	4.99	%
2005	0.25	%	15,290		14.379334		219,860	0.00	%	2.64	%
2004	0.25	%	22,204		14.009370		311,064	0.00	%	11.60	%
2003	0.25	%	3,926		12.553503		49,285	0.00	%	24.75	%
Neuberger Berman AMT – Guardian Portfolio – I Class Shares
2007	0.25	%	98,428		14.787583		1,455,512	0.26	%	7.12	%
2006	0.25	%	194,222		13.804932		2,681,222	0.70	%	13.09	%
2005	0.25	%	75,766		12.206553		924,842	0.15	%	8.12	%
2004	0.25	%	91,408		11.289714		1,031,970	0.12	%	15.53	%
2003	0.25	%	52,239		9.772505		510,506	0.89	%	31.43	%
Neuberger Berman AMT – Mid-Cap Growth Portfolio – I Class Shares
2007	0.25	%	489,154		13.301400		6,506,433	0.00	%	22.22	%
2006	0.25	%	391,016		10.883119		4,255,474	0.00	%	14.41	%
2005	0.25	%	365,056		9.512489		3,472,591	0.00	%	13.46	%
2004	0.25	%	678,994		8.384158		5,692,793	0.00	%	16.02	%
2003	0.25	%	284,185		7.226636		2,053,702	0.00	%	27.75	%

(Continued)

103

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Neuberger Berman AMT – Partners Portfolio – Class I
2007	0.25	%	25,412	$	17.855044	$	453,732	0.62	%	9.06	%
2006	0.25	%	70,676		16.371496		1,157,072	0.68	%	11.96	%
2005	0.25	%	84,180		14.622460		1,230,919	0.98	%	17.75	%
2004	0.25	%	191,928		12.418080		2,383,377	0.01	%	18.68	%
2003	0.25	%	44,110		10.463664		461,552	0.00	%	34.75	%
Neuberger Berman AMT – Regency Portfolio – Class I
2007	0.25	%	32,224		10.569832		340,602	0.46	%	3.04	%
2006	0.25	%	6,524		10.257708		66,921	0.44	%	2.58	% 05/01/06
Oppenheimer VAF – Capital Appreciation Fund – Non-Service Shares
2007	0.25	%	3,734,518		11.762653		43,927,839	0.22	%	13.86	%
2006	0.25	%	3,188,414		10.330569		32,938,131	0.38	%	7.68	%
2005	0.25	%	3,734,142		9.593805		35,824,630	0.91	%	4.84	%
2004	0.25	%	1,591,142		9.151191		14,560,844	0.31	%	6.67	%
2003	0.25	%	503,219		8.579039		4,317,135	0.38	%	30.62	%
Oppenheimer VAF – Global Securities Fund – Non-Service Shares
2007	0.25	%	1,785,708		15.720950		28,073,026	1.33	%	6.05	%
2006	0.25	%	1,608,848		14.823774		23,849,199	1.07	%	17.40	%
2005	0.25	%	1,169,740		12.626867		14,770,151	1.00	%	14.02	%
2004	0.25	%	436,776		11.073978		4,836,848	1.15	%	18.87	%
2003	0.25	%	162,279		9.316393		1,511,855	0.73	%	42.66	%
Oppenheimer VAF – Main Street® – Non-Service Shares
2007	0.25	%	225,200		12.928044		2,911,396	1.00	%	4.16	%
2006	0.25	%	370,160		12.411511		4,594,245	1.10	%	14.74	%
2005	0.25	%	381,782		10.817217		4,129,819	1.37	%	5.71	%
2004	0.25	%	192,090		10.232719		1,965,603	0.83	%	9.19	%
2003	0.25	%	264,755		9.371848		2,481,244	0.90	%	26.40	%
Oppenheimer VAF – Mid Cap Fund – Non-Service Shares
2007	0.25	%	1,094,732		9.260496		10,137,761	0.00	%	6.07	%
2006	0.25	%	1,386,376		8.730923		12,104,342	0.00	%	2.70	%
2005	0.25	%	1,772,498		8.501413		15,068,738	0.00	%	12.05	%
2004	0.25	%	1,726,784		7.587355		13,101,723	0.00	%	19.48	%
2003	0.25	%	809,116		6.350438		5,138,241	0.00	%	25.28	%
PIMCO VIT – All Asset Portfolio – Administrative Shares
2007	0.25	%	133,088		13.398414		1,783,168	8.25	%	8.06	%
2006	0.25	%	121,412		12.399544		1,505,453	4.03	%	4.40	%
2005	0.25	%	287,514		11.877133		3,414,842	4.94	%	5.96	%
2004	0.25	%	10,938		11.208609		122,600	6.86	%	12.09	% 05/03/04
PIMCO VIT – Low Duration Portfolio – Administrative Shares
2007	0.25	%	1,853,686		11.823104		21,916,322	4.75	%	7.10	%
2006	0.25	%	875,682		11.038824		9,666,499	4.19	%	3.70	%
2005	0.25	%	747,294		10.644694		7,954,716	2.71	%	0.75	%
2004	0.25	%	554,690		10.565271		5,860,450	1.29	%	1.58	%
2003	0.25	%	1,496,037		10.400435		15,559,436	1.22	%	2.09	%
PIMCO VIT – Real Return Portfolio – Administrative Shares
2007	0.25	%	1,535,174		13.803269		21,190,420	4.64	%	10.37	%
2006	0.25	%	1,287,852		12.506613		16,106,667	4.26	%	0.49	%
2005	0.25	%	1,206,896		12.445521		15,020,450	2.85	%	1.82	%
2004	0.25	%	309,916		12.223233		3,788,175	1.03	%	8.62	%
2003	0.25	%	73,396		11.253423		825,956	2.35	%	8.58	%
PIMCO VIT – Total Return Portfolio – Administrative Shares
2007	0.25	%	5,454,364		13.002214		70,918,808	4.81	%	8.47	%
2006	0.25	%	3,326,500		11.986960		39,874,622	4.42	%	3.59	%
2005	0.25	%	2,083,246		11.571785		24,106,875	3.47	%	2.17	%
2004	0.25	%	1,511,060		11.325918		17,114,142	1.92	%	4.62	%
2003	0.25	%	1,182,357		10.825824		12,799,989	2.71	%	4.78	%

(Continued)

104

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Pioneer VCT – Pioneer High Yield Portfolio – Class I Shares
2007	0.25	%	195,182	$	17.203983	$	3,357,908	5.36	%	5.65	%
2006	0.25	%	82,444		16.283186		1,342,451	5.53	%	8.23	%
2005	0.25	%	36,528		15.044787		549,556	5.49	%	1.69	%
2004	0.25	%	53,634		14.794578		793,492	5.59	%	7.79	%
2003	0.25	%	379,007		13.725038		5,201,885	5.84	%	32.45	%
Royce Capital Fund – Micro-Cap Portfolio
2007	0.25	%	1,213,818		23.821182		28,914,579	1.50	%	3.72	%
2006	0.25	%	779,248		22.967474		17,897,358	0.17	%	20.77	%
2005	0.25	%	690,136		19.017724		13,124,816	0.60	%	11.33	%
2004	0.25	%	271,392		17.082044		4,635,930	0.00	%	13.56	%
2003	0.25	%	85,061		15.042113		1,279,497	0.00	%	48.79	%
T. Rowe Price Equity Income Portfolio – II
2007	0.25	%	2,229,008		18.178518		40,520,062	1.51	%	2.77	%
2006	0.25	%	1,540,034		17.688346		27,240,654	1.35	%	18.35	%
2005	0.25	%	892,058		14.945544		13,332,292	1.39	%	3.44	%
2004	0.25	%	366,698		14.448971		5,298,409	1.46	%	14.33	%
2003	0.25	%	167,637		12.637920		2,118,583	1.80	%	24.86	%
T. Rowe Price Mid – Cap Growth Portfolio — II
2007	0.25	%	726,466		23.547392		17,106,380	0.00	%	16.93	%
2006	0.25	%	560,134		20.137940		11,279,945	0.00	%	6.12	%
2005	0.25	%	356,418		18.977178		6,763,808	0.00	%	14.15	%
2004	0.25	%	179,746		16.624542		2,988,195	0.00	%	17.76	%
2003	0.25	%	279,141		14.117448		3,940,759	0.00	%	37.75	%
T. Rowe Price New America Growth Portfolio
2007	0.25	%	194,180		13.682900		2,656,946	0.00	%	13.49	%
2006	0.25	%	86,392		12.056017		1,041,543	0.04	%	7.06	%
2005	0.25	%	2,404		11.260565		27,070	0.00	%	4.21	%
2004	0.25	%	560		10.805340		6,051	0.00	%	8.05	% 05/03/04
T. Rowe Price Personal Strategy Balanced Portfolio
2007	0.25	%	5,720		10.865761		62,152	1.34	%	7.34	%
The Dreyfus Socially Responsible Growth Fund, Inc. – Initial Shares
2007	0.25	%	50,616		8.832711		447,076	0.54	%	7.51	%
2006	0.25	%	91,596		8.215346		752,493	0.11	%	8.93	%
2005	0.25	%	101,932		7.541951		768,766	0.00	%	3.36	%
2004	0.25	%	154,666		7.296964		1,128,592	0.40	%	5.95	%
2003	0.25	%	71,544		6.887482		492,758	0.11	%	25.69	%
Turner GVIT Growth Focus Fund – Class I
2003	0.25	%	23,948		3.309832		79,264	0.00	%	50.59	%
Van Eck Worldwide Insurance Trust – Emerging Markets Fund – Initial Class
2007	0.25	%	105,400		44.930650		4,735,691	0.40	%	37.27	%
2006	0.25	%	66,446		32.731758		2,174,894	0.56	%	39.14	%
2005	0.25	%	41,596		23.523647		978,490	0.71	%	31.67	%
2004	0.25	%	212,994		17.865954		3,805,341	0.53	%	25.58	%
2003	0.25	%	38,302		14.227140		544,928	0.11	%	53.80	%
Van Eck Worldwide Insurance Trust – Hard Assets Fund – Initial Class
2007	0.25	%	170,146		47.252962		8,039,902	0.11	%	44.99	%
2006	0.25	%	153,486		32.590053		5,002,117	0.06	%	24.18	%
2005	0.25	%	129,856		26.243783		3,407,913	0.31	%	51.29	%
2004	0.25	%	31,156		17.346378		540,444	0.31	%	23.92	%
2003	0.25	%	12,374		14.026509		173,564	0.41	%	44.72	%
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I
2007	0.25	%	74,644		22.760599		1,698,942	7.13	%	6.26	%
2006	0.25	%	49,984		21.418803		1,070,597	10.28	%	10.53	%
2005	0.25	%	48,476		19.378063		939,371	7.14	%	11.97	%
2004	0.25	%	37,344		17.306300		646,286	7.52	%	9.79	%
2003	0.25	%	68,138		15.763497		1,074,093	0.00	%	27.55	%

(Continued)

105

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Van Kampen UIF – Mid Cap Growth Portfolio – class I
2007	0.25	%	401,714	$	11.268795	$	4,526,833	0.00	%	22.36	%
2006	0.25	%	265,862		9.209696		2,448,508	0.00	%	9.00	%
2005	0.25	%	144,664		8.449046		1,222,273	0.00	%	17.28	%
2004	0.25	%	137,920		7.204463		993,640	0.00	%	21.29	%
2003	0.25	%	74,914		5.939719		444,968	0.00	%	41.41	%
Van Kampen UIF – U.S. Real Estate Portfolio – Class I
2007	0.25	%	617,432		28.522644		17,610,793	1.11	%	-17.28	%
2006	0.25	%	709,670		34.480507		24,469,781	1.07	%	37.70	%
2005	0.25	%	546,448		25.040093		13,683,109	1.19	%	16.76	%
2004	0.25	%	352,704		21.445777		7,564,011	1.61	%	36.05	%
2003	0.25	%	151,526		15.762653		2,388,452	0.00	%	37.17	%
W&R Target Funds, Inc. – Growth Portfolio
2007	0.25	%	2,806		15.403902		43,223	0.00	%	25.50	%
W&R Target Funds, Inc. – Real Estate Securities Portfolio
2007	0.25	%	3,926		12.480780		49,000	1.28	%	-16.28	%
2006	0.25	%	594		14.907103		8,855	1.58	%	29.76	%
W&R Target Funds, Inc. – Science and Technology Portfolio
2007	0.25	%	448		10.188127		4,564	0.00	%	1.88	% 09/27/07
Wells Fargo AVT – Opportunity FundSM
2007	0.25	%	358,194		14.277593		5,114,148	0.61	%	6.37	%
2006	0.25	%	454,354		13.423088		6,098,834	0.00	%	11.94	%
2005	0.25	%	470,806		11.991404		5,645,625	0.00	%	7.62	%
2004	0.25	%	469,872		11.142802		5,235,691	0.00	%	17.93	%
2003	0.25	%	169,629		9.449055		1,602,834	0.08	%	36.66	%
The BEST of AMERICA® America’s FUTURE Life SeriesSM
Reduced Fee Tier (0.40%)
AIM VIF – Basic Value Fund – Series I
2007	0.40	%	16,380		17.397964		284,979	0.59	%	1.14	%
2006	0.40	%	30,412		17.202471		523,162	0.42	%	12.75	%
2005	0.40	%	44,502		15.256716		678,954	0.09	%	5.32	%
2004	0.40	%	73,606		14.486704		1,066,308	0.00	%	10.63	%
2003	0.40	%	82,900		13.095200		1,085,592	0.06	%	33.09	%
AIM VIF – Capital Appreciation Fund – Series I
2003	0.40	%	13,547		13.224712		179,155	0.00	%	34.82	%
AIM VIF – Capital Development Fund – Series I
2007	0.40	%	129,860		21.279639		2,763,374	0.00	%	10.40	%
2006	0.40	%	137,464		19.275099		2,649,632	0.00	%	16.06	%
2005	0.40	%	247,510		16.608430		4,110,753	0.00	%	9.17	%
2004	0.40	%	59,864		15.213529		910,743	0.00	%	15.04	%
AIM VIF – International Growth Fund – Series I
2007	0.40	%	475,710		20.410961		9,709,698	0.53	%	14.26	%
2006	0.40	%	461,146		17.863705		8,237,776	0.97	%	27.72	%
2005	0.40	%	457,728		13.986284		6,401,914	1.14	%	17.46	%
2004	0.40	%	152,296		11.907437		1,813,455	1.36	%	19.07	% 05/03/04
AllianceBernstein VPS – Growth and Income Portfolio – Class A
2007	0.40	%	63,592		18.737498		1,191,555	1.44	%	4.70	%
2006	0.40	%	395,572		17.896979		7,079,544	1.37	%	16.82	%
2005	0.40	%	386,306		15.320186		5,918,280	1.48	%	4.45	%
2004	0.40	%	309,918		14.667608		4,545,756	0.92	%	11.02	%
2003	0.40	%	246,983		13.212012		3,263,142	0.51	%	31.97	%
AllianceBernstein VPS – International Value Portfolio – Class A
2007	0.40	%	764,464		11.924192		9,115,616	1.13	%	5.42	%
2006	0.40	%	453,968		11.311574		5,135,093	0.57	%	13.12	% 05/01/06
American Century VP – Income & Growth Fund – Class I
2006	0.40	%	280		14.724248		4,123	1.85	%	16.62	%
2005	0.40	%	1,326		12.625722		16,742	1.94	%	4.21	%
2004	0.40	%	177,026		12.115153		2,144,697	1.37	%	12.54	%
2003	0.40	%	350,297		10.765053		3,770,966	1.28	%	28.84	%

(Continued)

106

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
American Century VP – International Fund – Class I
2007	0.40	%	3,154	$	17.343787	$	54,702	0.70	%	17.58	%
2006	0.40	%	146,198		14.750278		2,156,461	1.58	%	24.53	%
2005	0.40	%	243,536		11.844974		2,884,678	1.25	%	12.80	%
2004	0.40	%	1,074,540		10.500552		11,283,263	0.56	%	14.47	%
2003	0.40	%	2,984,336		9.173579		27,377,042	0.73	%	24.01	%
American Century VP – Ultra® Fund – Class I
2007	0.40	%	9,950		12.990210		129,253	0.00	%	20.53	%
2006	0.40	%	15,632		10.777532		168,474	0.00	%	-3.66	%
2005	0.40	%	28,284		11.187064		316,415	0.00	%	1.76	%
2004	0.40	%	102,910		10.993709		1,131,363	0.00	%	10.23	%
2003	0.40	%	79,186		9.973091		789,729	0.00	%	24.40	%
American Century VP – Value Fund – Class I
2007	0.40	%	199,154		18.202380		3,625,077	1.58	%	-5.52	%
2006	0.40	%	250,854		19.265641		4,832,863	1.41	%	18.18	%
2005	0.40	%	371,836		16.301854		6,061,616	0.83	%	4.62	%
2004	0.40	%	572,678		15.582659		8,923,846	0.97	%	13.88	%
2003	0.40	%	835,035		13.683795		11,426,448	1.04	%	28.44	%
American Century VP – VistaSM Fund – Class I
2007	0.40	%	9,298		17.281076		160,679	0.00	%	39.21	%
2006	0.40	%	9,374		12.413582		116,365	0.00	%	8.57	%
2005	0.40	%	596		11.433293		6,814	0.00	%	14.33	% 05/02/05
BlackRock International Index Portfolio – Class II
2006	0.40	%	17,946		14.547195		261,064	5.83	%	25.18	%
2005	0.40	%	220		11.621096		2,557	1.76	%	16.21	% 05/02/05
BlackRock Large Cap Core V.I. Fund – Class II
2007	0.40	%	15,428		14.219711		219,382	1.23	%	7.69	%
2006	0.40	%	17,728		13.203975		234,080	0.79	%	14.16	%
2005	0.40	%	73,626		11.566434		851,590	0.74	%	15.66	% 05/02/05
Calvert Variable Series Inc. – Social Equity Portfolio
2006	0.40	%	512		15.240875		7,803	0.00	%	9.62	%
2005	0.40	%	428		13.903575		5,951	0.06	%	4.13	%
2004	0.40	%	6,064		13.352495		80,970	0.08	%	6.73	%
2003	0.40	%	1,076		12.510533		13,461	0.01	%	21.69	%
Credit Suisse Trust – Large Cap Value Portfolio
2003	0.40	%	17,547		10.955988		192,245	0.76	%	24.66	%
Dreyfus IP – Mid Cap Stock Portfolio – Initial Shares
2007	0.40	%	2,880		17.588091		50,654	0.45	%	1.09	%
2006	0.40	%	6,714		17.398454		116,813	0.37	%	7.32	%
2005	0.40	%	9,248		16.211755		149,926	0.02	%	8.74	%
2004	0.40	%	25,166		14.909204		375,205	0.43	%	14.02	%
2003	0.40	%	58,097		13.076217		759,689	1.02	%	31.20	%
Dreyfus IP – Small Cap Stock Index Portfolio – Service Shares
2007	0.40	%	207,618		15.357469		3,188,487	0.38	%	-1.05	%
2006	0.40	%	418,714		15.520951		6,498,839	0.38	%	13.96	%
2005	0.40	%	434,388		13.620186		5,916,445	0.00	%	6.81	%
2004	0.40	%	164,998		12.752292		2,104,103	0.57	%	21.40	%
2003	0.40	%	61,690		10.504526		648,024	0.27	%	37.23	%
Dreyfus Stock Index Fund, Inc. – Initial Shares
2007	0.40	%	3,158,044		14.346541		45,307,008	1.72	%	4.83	%
2006	0.40	%	4,780,522		13.685152		65,422,170	1.64	%	15.04	%
2005	0.40	%	3,928,314		11.896207		46,732,037	1.63	%	4.27	%
2004	0.40	%	6,072,526		11.408542		69,278,668	1.82	%	10.20	%
2003	0.40	%	9,284,780		10.352696		96,122,505	1.54	%	27.85	%
Dreyfus VIF – Appreciation Portfolio – Initial Shares
2007	0.40	%	65,988		14.746966		973,123	1.56	%	6.70	%
2006	0.40	%	265,322		13.820624		3,666,916	1.53	%	16.01	%
2005	0.40	%	471,228		11.912967		5,613,724	0.02	%	3.96	%
2004	0.40	%	504,718		11.458946		5,783,536	1.67	%	4.63	%
2003	0.40	%	830,526		10.952239		9,096,119	1.18	%	20.69	%

(Continued)

107

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Dreyfus VIF – International Value Portfolio – Initial Shares
2007	0.40	%	180,206	$	21.606848	$	3,893,684	1.57	%	3.74	%
2006	0.40	%	293,760		20.828757		6,118,656	1.25	%	22.11	%
2005	0.40	%	369,294		17.057481		6,299,225	0.00	%	11.44	%
2004	0.40	%	507,212		15.305834		7,763,303	1.23	%	19.54	%
2003	0.40	%	146,661		12.803571		1,877,785	2.67	%	35.81	%
DWS Variable Series II – Dreman High Return Equity VIP – Class B
2007	0.40	%	1,088		10.955918		11,920	0.92	%	-2.58	%
Federated IS – Quality Bond Fund II – Primary Shares
2007	0.40	%	18,180		14.987597		272,475	5.83	%	4.96	%
2006	0.40	%	68,922		14.279265		984,156	5.17	%	3.74	%
2005	0.40	%	592,368		13.764550		8,153,679	3.55	%	0.89	%
2004	0.40	%	1,333,708		13.642560		18,195,191	3.92	%	3.21	%
2003	0.40	%	2,418,929		13.218733		31,975,177	3.30	%	4.23	%
Fidelity® VIP – Equity-Income Portfolio – Service Class
2007	0.40	%	275,862		16.184435		4,464,671	1.67	%	1.01	%
2006	0.40	%	520,282		16.022504		8,336,220	3.15	%	19.60	%
2005	0.40	%	722,038		13.396579		9,672,839	1.56	%	5.34	%
2004	0.40	%	1,784,684		12.717880		22,697,397	1.39	%	10.94	%
2003	0.40	%	2,509,045		11.463982		28,763,647	1.66	%	29.70	%
Fidelity® VIP – Growth Portfolio – Service Class
2007	0.40	%	190,114		15.988944		3,039,722	0.62	%	26.36	%
2006	0.40	%	245,682		12.653389		3,108,710	0.28	%	6.31	%
2005	0.40	%	510,730		11.902677		6,079,054	0.41	%	5.25	%
2004	0.40	%	1,600,358		11.308717		18,097,996	0.16	%	2.85	%
2003	0.40	%	2,979,457		10.995198		32,759,720	0.18	%	32.25	%
Fidelity® VIP – High Income Portfolio – Service Class
2006	0.40	%	244		10.547905		2,574	7.58	%	10.73	%
2005	0.40	%	2,824		9.525383		26,900	14.70	%	2.11	%
2004	0.40	%	217,058		9.328110		2,024,741	8.03	%	9.03	%
2003	0.40	%	504,057		8.555502		4,312,461	6.36	%	26.46	%
Fidelity® VIP – Overseas Portfolio – Service Class
2007	0.40	%	205,152		17.708202		3,632,873	3.19	%	16.74	%
2006	0.40	%	581,496		15.169405		8,820,948	0.84	%	17.48	%
2005	0.40	%	700,420		12.912620		9,044,257	0.56	%	18.50	%
2004	0.40	%	912,684		10.896942		9,945,465	0.98	%	13.03	%
2003	0.40	%	746,827		9.640353		7,199,676	0.63	%	42.63	%
Fidelity® VIP II – Contrafund® Portfolio – Service Class
2007	0.40	%	694,122		22.806621		15,830,577	0.89	%	17.04	%
2006	0.40	%	967,474		19.486792		18,852,965	1.12	%	11.15	%
2005	0.40	%	1,090,144		17.532748		19,113,220	0.19	%	16.38	%
2004	0.40	%	1,506,264		15.064815		22,691,589	0.24	%	14.88	%
2003	0.40	%	1,901,875		13.113640		24,940,504	0.30	%	27.84	%
Fidelity® VIP II – Investment Grade Bond Portfolio – Service Class
2007	0.40	%	5,038		11.607727		58,480	3.80	%	3.79	%
2006	0.40	%	880		11.183530		9,842	3.34	%	3.88	%
2005	0.40	%	372		10.765329		4,005	2.69	%	1.67	%
Fidelity® VIP III – Growth Opportunities Portfolio – Service Class
2005	0.40	%	608		9.527944		5,793	0.84	%	8.43	%
2004	0.40	%	20,800		8.787333		182,777	0.48	%	6.63	%
2003	0.40	%	259,028		8.240791		2,134,596	0.59	%	29.14	%
Fidelity® VIP III – Mid Cap Portfolio – Service Class
2007	0.40	%	51,988		26.511996		1,378,306	0.72	%	15.02	%
2006	0.40	%	35,172		23.049221		810,687	0.23	%	12.14	%
2005	0.40	%	3,976		20.553596		81,721	0.00	%	17.73	%
Fidelity® VIP III – Value Strategies Portfolio – Service Class
2006	0.40	%	14		15.797724		221	0.49	%	15.73	%
2005	0.40	%	2,310		13.649958		31,531	0.00	%	2.15	%
2004	0.40	%	64,044		13.363171		855,831	0.00	%	13.53	%
2003	0.40	%	59,064		11.770364		695,205	0.00	%	57.16	%

(Continued)

108

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Franklin Templeton VIP – Foreign Securities Fund – Class 2
2007	0.40	%	64,892	$	22.480343	$	1,458,794	1.86	%	14.99	%
2006	0.40	%	494,684		19.549201		9,670,677	1.24	%	20.96	%
2005	0.40	%	485,970		16.161499		7,854,004	1.12	%	9.73	%
2004	0.40	%	397,492		14.728417		5,854,428	1.11	%	18.06	%
2003	0.40	%	300,494		12.475864		3,748,922	1.96	%	31.96	%
Franklin Templeton VIP – Small Cap Value Securities Fund – Class 2
2007	0.40	%	62,522		12.847323		803,240	0.63	%	-2.77	%
2006	0.40	%	62,174		13.213518		821,537	0.76	%	16.52	%
2005	0.40	%	199,332		11.340582		2,260,541	0.00	%	13.41	% 05/02/05
Gartmore GVIT – Small Cap Growth Fund: Class I – Intial Funding by Depositor
2006	0.40	%	106,988		16.842189		1,801,912	0.00	%	2.80	%
2005	0.40	%	123,110		16.384018		2,017,036	0.00	%	7.66	%
2004	0.40	%	302,750		15.218321		4,607,347	0.00	%	12.96	%
2003	0.40	%	315,046		13.471955		4,244,286	0.00	%	33.73	%
Goldman Sachs VIT Mid Cap Value Fund
2007	0.40	%	707,562		21.165166		14,975,667	0.81	%	2.79	%
2006	0.40	%	1,066,122		20.590810		21,952,316	0.98	%	15.70	%
2005	0.40	%	1,114,814		17.796530		19,839,821	0.60	%	12.38	%
2004	0.40	%	1,046,542		15.836525		16,573,589	0.74	%	25.38	%
2003	0.40	%	599,528		12.630569		7,572,380	1.72	%	27.88	%
Janus Aspen Series – Balanced Portfolio – Service Shares
2007	0.40	%	133,728		15.879713		2,123,562	2.47	%	9.84	%
2006	0.40	%	165,700		14.456527		2,395,447	1.99	%	9.98	%
2005	0.40	%	208,740		13.145265		2,743,943	2.04	%	7.23	%
2004	0.40	%	285,628		12.258707		3,501,430	2.45	%	7.86	%
2003	0.40	%	360,530		11.365300		4,097,532	2.34	%	13.27	%
Janus Aspen Series – Forty Portfolio – Service Shares
2007	0.40	%	59,336		12.481327		740,592	0.19	%	36.09	%
2006	0.40	%	228,352		9.171618		2,094,357	0.14	%	8.68	%
2005	0.40	%	217,772		8.438947		1,837,766	0.01	%	12.11	%
2004	0.40	%	878,196		7.527514		6,610,633	0.02	%	17.50	%
2003	0.40	%	1,755,706		6.406568		11,248,050	0.25	%	19.75	%
Janus Aspen Series – Global Technology Portfolio – Service Shares
2007	0.40	%	2,106		5.091162		10,722	0.34	%	21.21	%
2006	0.40	%	52		4.200294		218	0.00	%	7.40	%
2005	0.40	%	8,530		3.910937		33,360	0.00	%	11.11	%
2004	0.40	%	183,526		3.520024		646,016	0.00	%	0.16	%
2003	0.40	%	524,317		3.514240		1,842,576	0.00	%	45.89	%
Janus Aspen Series – International Growth Portfolio – Service Shares
2007	0.40	%	4,662		18.018848		84,004	0.44	%	27.50	%
2006	0.40	%	43,784		14.131910		618,752	1.89	%	46.05	%
2005	0.40	%	156,464		9.676381		1,514,005	1.05	%	31.41	%
2004	0.40	%	1,087,636		7.363272		8,008,560	0.85	%	18.21	%
2003	0.40	%	2,277,464		6.228826		14,185,927	1.02	%	34.00	%
JPMorgan Insurance Trust – Diversified Mid Cap Growth Portfolio 1
2007	0.40	%	106,088		20.505746		2,175,414	0.00	%	16.77	%
2006	0.40	%	83,526		17.561058		1,466,805	0.00	%	10.95	%
2005	0.40	%	90,134		15.828526		1,426,688	0.00	%	10.65	%
2004	0.40	%	99,214		14.304998		1,419,256	0.00	%	12.17	%
2003	0.40	%	208,667		12.752960		2,661,122	0.00	%	26.64	%
JPMorgan Insurance Trust – Diversified Mid Cap Value Portfolio 1
2006	0.40	%	2,838		19.163821		54,387	1.18	%	16.26	%
2005	0.40	%	14,156		16.484146		233,350	0.60	%	9.32	%
2004	0.40	%	35,252		15.079159		531,571	0.58	%	14.94	%
2003	0.40	%	30,988		13.119525		406,548	0.57	%	32.22	%

(Continued)

109

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Lincoln VIP – Baron Growth Opportunies Funds – Service Class
2007	0.40	%	154,928	$	19.168269	$	2,969,702	0.00	%	3.01	%
2006	0.40	%	206,184		18.608964		3,836,871	0.00	%	15.06	%
2005	0.40	%	191,636		16.172933		3,099,316	0.00	%	2.95	%
2004	0.40	%	171,058		15.709055		2,687,160	0.00	%	25.14	%
2003	0.40	%	107,132		12.553439		1,344,875	0.00	%	29.49	%
Lord Abbett Series Fund, Inc. – Mid-Cap Value Portfolio – Class VC
2007	0.40	%	14,806		12.608296		186,678	0.59	%	0.18	%
2006	0.40	%	7,064		12.586028		88,908	0.89	%	11.78	%
2005	0.40	%	1,690		11.259238		19,028	0.52	%	12.59	% 05/02/05
MFS VIT – Research International Series – Service Class
2007	0.40	%	772		10.552986		8,147	0.00	%	5.53	% 05/01/07
Nationwide GVIT Strategic Value Fund – Class I
2003	0.40	%	19,292		9.311693		179,641	0.04	%	38.25	%
Nationwide VIT – Federated High Income Bond Fund – Class I
2007	0.40	%	205,334		15.518038		3,186,381	7.29	%	2.72	%
2006	0.40	%	230,582		15.107048		3,483,413	7.41	%	10.16	%
2005	0.40	%	224,370		13.713412		3,076,878	6.92	%	1.97	%
2004	0.40	%	329,516		13.448117		4,431,370	7.58	%	9.66	%
2003	0.40	%	767,382		12.263819		9,411,034	7.99	%	21.78	%
Nationwide VIT – Gartmore Emerging Markets Fund – Class I
2007	0.40	%	273,120		35.835395		9,787,363	0.71	%	44.99	%
2006	0.40	%	316,790		24.714946		7,829,448	0.71	%	36.17	%
2005	0.40	%	150,756		18.149525		2,736,150	0.60	%	32.11	%
2004	0.40	%	182,748		13.738334		2,510,653	1.04	%	20.26	%
2003	0.40	%	183,203		11.423706		2,092,857	0.61	%	64.60	%
Nationwide VIT – Gartmore Global Utilities Fund – Class l
2006	0.40	%	2,542		20.110980		51,122	2.84	%	37.01	%
2005	0.40	%	2,742		14.678049		40,247	2.09	%	5.96	%
2004	0.40	%	15,120		13.851870		209,440	1.64	%	29.45	%
2003	0.40	%	13,251		10.700667		141,795	1.02	%	23.56	%
Nationwide VIT – Gartmore International Growth Fund – Class I
2006	0.40	%	416		13.099372		5,449	0.84	%	32.44	%
2005	0.40	%	4		9.891115		40	1.10	%	29.69	%
2004	0.40	%	25,428		7.626680		193,931	0.85	%	13.74	%
2003	0.40	%	52,743		6.705480		353,667	0.00	%	35.08	%
Nationwide VIT – Gartmore Worldwide Leaders Fund – Class I
2006	0.40	%	24		15.509710		372	0.85	%	25.38	%
2005	0.40	%	78		12.370181		965	1.11	%	18.86	%
2004	0.40	%	1,704		10.407118		17,734	0.00	%	15.20	%
2003	0.40	%	30,673		9.033664		277,090	0.00	%	35.52	%
Nationwide VIT – Global Financial Services Fund – Class I
2006	0.40	%	5,096		19.464132		99,189	1.89	%	19.84	%
2005	0.40	%	3,938		16.241486		63,959	2.00	%	10.71	%
2004	0.40	%	59,974		14.670465		879,846	1.37	%	20.51	%
2003	0.40	%	44,687		12.173639		544,003	1.08	%	40.89	%
Nationwide VIT – Global Health Sciences Fund – Class l
2007	0.40	%	2,882		15.150267		43,663	0.07	%	12.71	%
2006	0.40	%	18,258		13.442227		245,428	0.00	%	2.30	%
2005	0.40	%	13,866		13.140144		182,201	0.00	%	8.01	%
2004	0.40	%	57,244		12.165918		696,426	0.00	%	7.43	%
2003	0.40	%	52,928		11.324625		599,390	0.00	%	36.15	%
Nationwide VIT – Global Technology and Communications Fund – Class I
2007	0.40	%	80,076		4.120279		329,935	0.00	%	19.61	%
2006	0.40	%	238,650		3.444715		822,081	0.00	%	10.73	%
2005	0.40	%	232,710		3.111019		723,965	0.00	%	-0.91	%
2004	0.40	%	481,400		3.139672		1,511,438	0.00	%	3.90	%
2003	0.40	%	573,189		3.021924		1,732,134	0.00	%	54.61	%

(Continued)

110

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Nationwide VIT – Government Bond Fund – Class I
2007	0.40	%	440,784	$	16.208282	$	7,144,351	4.48	%	6.73	%
2006	0.40	%	445,662		15.186518		6,768,054	3.95	%	2.93	%
2005	0.40	%	800,072		14.754249		11,804,462	3.71	%	2.85	%
2004	0.40	%	2,350,974		14.345081		33,724,912	5.38	%	2.85	%
2003	0.40	%	5,633,215		13.947593		78,569,790	3.25	%	1.59	%
Nationwide VIT – Growth Fund – Class I
2006	0.40	%	4		6.904680		28	0.05	%	5.75	%
2005	0.40	%	3,778		6.529541		24,669	0.08	%	6.08	%
2004	0.40	%	16,686		6.155504		102,711	0.34	%	7.72	%
2003	0.40	%	76,097		5.714099		434,826	0.02	%	32.21	%
Nationwide VIT – International Index Fund – Class II
2007	0.40	%	55,246		10.107323		558,389	1.19	%	1.07	% 05/01/07
Nationwide VIT – Investor Destinations Aggressive Fund – Class II
2007	0.40	%	157,686		16.351146		2,578,347	2.03	%	5.53	%
2006	0.40	%	171,634		15.493861		2,659,273	2.11	%	16.40	%
2005	0.40	%	104,554		13.310555		1,391,672	2.02	%	7.50	%
2004	0.40	%	63,674		12.381734		788,395	1.85	%	13.57	%
2003	0.40	%	19,629		10.902206		213,999	1.57	%	31.34	%
Nationwide VIT – Investor Destinations Conservative Fund – Class II
2007	0.40	%	106,108		12.809833		1,359,226	3.54	%	4.96	%
2006	0.40	%	92,396		12.204705		1,127,666	3.23	%	5.74	%
2005	0.40	%	49,050		11.542054		566,138	2.49	%	2.90	%
2004	0.40	%	95,536		11.217265		1,071,653	2.49	%	4.23	%
2003	0.40	%	12,703		10.761565		136,704	2.59	%	7.48	%
Nationwide VIT – Investor Destinations Moderate Fund – Class II
2007	0.40	%	384,024		14.547724		5,586,675	2.71	%	5.24	%
2006	0.40	%	490,632		13.823999		6,782,496	2.47	%	10.91	%
2005	0.40	%	390,100		12.464210		4,862,288	2.39	%	4.92	%
2004	0.40	%	264,480		11.879208		3,141,813	2.21	%	9.10	%
2003	0.40	%	37,624		10.888513		409,669	2.05	%	19.57	%
Nationwide VIT – Investor Destinations Moderately Aggressive Fund – Class II
2007	0.40	%	202,098		15.678888		3,168,672	2.31	%	5.72	%
2006	0.40	%	268,984		14.829966		3,989,024	2.25	%	14.08	%
2005	0.40	%	181,156		12.999118		2,354,868	2.19	%	6.65	%
2004	0.40	%	142,944		12.189084		1,742,356	2.01	%	11.65	%
2003	0.40	%	56,878		10.917690		620,976	1.61	%	26.14	%
Nationwide VIT – Investor Destinations Moderately Conservative Fund – Class II
2007	0.40	%	1,104,372		13.758509		15,194,512	3.18	%	5.43	%
2006	0.40	%	820,496		13.049356		10,706,944	2.84	%	7.99	%
2005	0.40	%	521,412		12.083751		6,300,613	2.78	%	4.07	%
2004	0.40	%	210,474		11.611205		2,443,857	2.38	%	6.73	%
2003	0.40	%	13,568		10.878938		147,605	2.33	%	13.24	%
Nationwide VIT – J.P. Morgan Balanced Fund – Class I
2006	0.40	%	608		12.170646		7,400	2.25	%	11.80	%
2005	0.40	%	39,454		10.885904		429,492	1.98	%	2.13	%
2004	0.40	%	241,606		10.658428		2,575,140	1.94	%	8.06	%
2003	0.40	%	533,567		9.863609		5,262,896	1.76	%	17.94	%
Nationwide VIT – Mid Cap Growth Fund – Class I
2006	0.40	%	94		13.633719		1,282	0.00	%	9.47	%
2005	0.40	%	468		12.454266		5,829	0.00	%	9.30	%
2004	0.40	%	114,718		11.394076		1,307,106	0.00	%	14.88	%
2003	0.40	%	335,334		9.918443		3,325,991	0.00	%	39.58	%
Nationwide VIT – Mid Cap Index Fund – Class I
2007	0.40	%	374,168		22.779636		8,523,411	1.35	%	7.13	%
2006	0.40	%	660,842		21.263963		14,052,120	1.14	%	9.45	%
2005	0.40	%	746,512		19.427688		14,503,002	1.04	%	11.65	%
2004	0.40	%	1,048,696		17.400194		18,247,514	0.56	%	15.27	%
2003	0.40	%	1,017,996		15.095175		15,366,828	0.50	%	34.11	%

(Continued)

111

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Nationwide VIT – Money Market Fund – Class I
2005	0.40	%	1,872	$	12.182168	$	22,805	2.61	%	2.26	%
2004	0.40	%	165,086		11.913109		1,966,688	0.80	%	0.41	%
2003	0.40	%	541,898		11.864684		6,429,449	0.63	%	0.22	%
Nationwide VIT – Money Market Fund – Class V
2007	0.40	%	3,398,038		11.242166		38,201,307	4.74	%	4.44	%
2006	0.40	%	4,048,114		10.763797		43,573,077	4.63	%	4.20	%
2005	0.40	%	5,136,552		10.330316		53,062,205	2.74	%	2.34	%
2004	0.40	%	7,815,054		10.093995		78,885,116	0.91	%	0.49	%
2003	0.40	%	11,999,723		10.045042		120,537,722	0.70	%	0.30	%
Nationwide VIT – Multi-Manager Small Cap Growth Fund – Class I
2007	0.40	%	28,166		18.410147		518,540	0.00	%	9.31	%
Nationwide VIT – Multi-Manager Small Cap Value Fund – Class I
2007	0.40	%	25,628		22.768858		583,520	1.13	%	-7.27	%
2006	0.40	%	104,786		24.553275		2,572,839	0.43	%	16.83	%
2005	0.40	%	395,632		21.016857		8,314,941	0.07	%	2.66	%
2004	0.40	%	1,039,852		20.471824		21,287,667	0.00	%	16.83	%
2003	0.40	%	1,315,269		17.522719		23,047,089	0.00	%	56.23	%
Nationwide VIT – Multi-Manager Small Company Fund – Class I
2007	0.40	%	227,380		22.796223		5,183,405	0.09	%	1.72	%
2006	0.40	%	428,830		22.410227		9,610,178	0.10	%	11.59	%
2005	0.40	%	832,540		20.082219		16,719,251	0.00	%	11.87	%
2004	0.40	%	1,815,822		17.951460		32,596,656	0.00	%	18.55	%
2003	0.40	%	2,515,752		15.142892		38,095,761	0.00	%	40.45	%
Nationwide VIT – Nationwide Fund – Class I
2007	0.40	%	1,370		13.797367		18,902	1.03	%	7.75	%
2006	0.40	%	31,470		12.805324		402,984	1.09	%	13.18	%
2005	0.40	%	28,310		11.314587		320,316	1.00	%	7.01	%
2004	0.40	%	119,314		10.573030		1,261,511	1.30	%	9.31	%
2003	0.40	%	331,958		9.672247		3,210,780	0.59	%	27.00	%
Nationwide VIT – Nationwide Leaders Fund – Class I
2006	0.40	%	54		15.818643		854	0.70	%	15.58	%
2005	0.40	%	212		13.685866		2,901	1.29	%	9.87	%
2004	0.40	%	996		12.456136		12,406	0.48	%	18.32	%
2003	0.40	%	2,091		10.527571		22,013	0.15	%	24.88	%
Nationwide VIT – U.S. Growth Leaders Fund – Class I
2006	0.40	%	118		15.415524		1,819	0.27	%	-0.69	%
2005	0.40	%	816		15.521877		12,666	0.00	%	11.52	%
2004	0.40	%	3,866		13.918876		53,810	0.00	%	11.96	%
2003	0.40	%	28,684		12.431976		356,599	0.00	%	51.53	%
Nationwide VIT – Van Kampen Comstock Value Fund – Class I
2006	0.40	%	2		13.317925		27	1.73	%	15.44	%
2005	0.40	%	262		11.536276		3,023	1.61	%	3.83	%
2004	0.40	%	28,772		11.110531		319,672	1.39	%	17.03	%
2003	0.40	%	50,453		9.493770		478,989	1.34	%	30.91	%
Nationwide VIT – Van Kampen Multi Sector Bond Fund – Class I
2007	0.40	%	44,644		15.463091		690,334	4.18	%	4.20	%
2006	0.40	%	34,566		14.839152		512,930	4.07	%	4.42	%
2005	0.40	%	89,110		14.210938		1,266,337	3.99	%	1.77	%
2004	0.40	%	307,698		13.963330		4,296,489	4.55	%	6.11	%
2003	0.40	%	469,752		13.159481		6,181,693	5.42	%	11.67	%
Neuberger Berman AMT – Fasciano Portfolio – S Class Shares
2007	0.40	%	1,998		15.016171		30,002	0.00	%	0.11	%
2006	0.40	%	7,818		14.999423		117,265	0.00	%	4.83	%
2005	0.40	%	20,788		14.307871		297,432	0.00	%	2.49	%
2004	0.40	%	44,406		13.960609		619,935	0.00	%	11.43	%
2003	0.40	%	35,320		12.528578		442,509	0.00	%	24.56	%

(Continued)

112

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Neuberger Berman AMT – Guardian Portfolio – I Class Shares
2006	0.40	%	74	$	14.282531	$	1,057	0.70	%	12.93	%
2005	0.40	%	80,808		12.647762		1,022,040	0.15	%	7.96	%
2004	0.40	%	290,396		11.715274		3,402,069	0.12	%	15.35	%
2003	0.40	%	406,038		10.156098		4,123,762	0.89	%	31.24	%
Neuberger Berman AMT – Mid-Cap Growth Portfolio – I Class Shares
2007	0.40	%	3,494		19.674042		68,741	0.00	%	22.04	%
2006	0.40	%	97,186		16.121456		1,566,780	0.00	%	14.24	%
2005	0.40	%	127,004		14.112212		1,792,307	0.00	%	13.29	%
2004	0.40	%	322,438		12.456893		4,016,576	0.00	%	15.84	%
2003	0.40	%	895,379		10.753194		9,628,184	0.00	%	27.56	%
Neuberger Berman AMT – Partners Portfolio – Class I
2007	0.40	%	596		16.713743		9,961	0.62	%	8.90	%
2006	0.40	%	414		15.348160		6,354	0.68	%	11.79	%
2005	0.40	%	211,116		13.728969		2,898,405	0.98	%	17.58	%
2004	0.40	%	244,546		11.676716		2,855,494	0.01	%	18.50	%
2003	0.40	%	271,980		9.853739		2,680,020	0.00	%	34.55	%
Neuberger Berman AMT – Regency Portfolio – Class I
2007	0.40	%	48,338		10.543396		509,647	0.46	%	2.89	%
2006	0.40	%	34,570		10.247505		354,256	0.44	%	2.48	% 05/01/06
Oppenheimer VAF – Capital Appreciation Fund – Non-Service Shares
2007	0.40	%	364,698		16.850466		6,145,331	0.22	%	13.69	%
2006	0.40	%	1,040,592		14.821276		15,422,901	0.38	%	7.52	%
2005	0.40	%	1,425,776		13.784845		19,654,101	0.91	%	4.68	%
2004	0.40	%	4,419,620		13.168552		58,199,996	0.31	%	6.51	%
2003	0.40	%	4,490,131		12.363752		55,514,866	0.38	%	30.42	%
Oppenheimer VAF – Global Securities Fund – Non-Service Shares
2007	0.40	%	792,482		15.541185		12,316,109	1.33	%	5.89	%
2006	0.40	%	898,758		14.676391		13,190,524	1.07	%	17.22	%
2005	0.40	%	810,028		12.520042		10,141,585	1.00	%	13.85	%
2004	0.40	%	1,770,284		10.996730		19,467,335	1.15	%	18.69	%
2003	0.40	%	1,588,406		9.265284		14,717,033	0.73	%	42.45	%
Oppenheimer VAF – Main Street® – Non-Service Shares
2006	0.40	%	3,524		11.856561		41,783	1.10	%	14.57	%
2005	0.40	%	5,684		10.349023		58,824	1.37	%	5.55	%
2004	0.40	%	606,518		9.804476		5,946,591	0.83	%	9.02	%
2003	0.40	%	805,623		8.993106		7,245,053	0.90	%	26.21	%
Oppenheimer VAF – Mid Cap Fund – Non-Service Shares
2006	0.40	%	986		13.200215		13,015	0.00	%	2.55	%
2005	0.40	%	5,300		12.872483		68,224	0.00	%	11.88	%
2004	0.40	%	916,804		11.505640		10,548,417	0.00	%	19.30	%
2003	0.40	%	1,747,033		9.644393		16,849,073	0.00	%	25.09	%
PIMCO VIT – All Asset Portfolio – Administrative Shares
2007	0.40	%	2,462		13.325057		32,806	8.25	%	7.89	%
2006	0.40	%	2,542		12.350260		31,394	4.03	%	4.24	%
2005	0.40	%	58,972		11.847635		698,679	4.94	%	5.81	%
2004	0.40	%	13,676		11.197507		153,137	6.86	%	11.98	% 05/03/04
PIMCO VIT – Low Duration Portfolio – Administrative Shares
2007	0.40	%	189,584		11.728722		2,223,578	4.75	%	6.94	%
2006	0.40	%	995,170		10.967285		10,914,313	4.19	%	3.55	%
2005	0.40	%	1,106,776		10.591594		11,722,522	2.71	%	0.60	%
2004	0.40	%	1,548,394		10.528355		16,302,042	1.29	%	1.43	%
2003	0.40	%	427,929		10.379703		4,441,776	1.22	%	1.94	%
PIMCO VIT – Real Return Portfolio – Administrative Shares
2007	0.40	%	1,489,604		13.692856		20,396,933	4.64	%	10.20	%
2006	0.40	%	1,442,470		12.425357		17,923,205	4.26	%	0.34	%
2005	0.40	%	640,224		12.383232		7,928,042	2.85	%	1.67	%
2004	0.40	%	907,634		12.180321		11,055,273	1.03	%	8.45	%
2003	0.40	%	604,652		11.230805		6,790,729	2.35	%	8.42	%

(Continued)

113

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
PIMCO VIT – Total Return Portfolio – Administrative Shares
2007	0.40	%	1,905,050	$	12.898203	$	24,571,722	4.81	%	8.31	%
2006	0.40	%	3,150,134		11.909077		37,515,188	4.42	%	3.43	%
2005	0.40	%	2,531,932		11.513866		29,152,326	3.47	%	2.02	%
2004	0.40	%	3,142,992		11.286156		35,472,298	1.92	%	4.46	%
2003	0.40	%	2,117,582		10.804064		22,878,491	2.71	%	4.62	%
Pioneer VCT – Pioneer High Yield Portfolio – Class I Shares
2007	0.40	%	179,670		17.066645		3,066,364	5.36	%	5.50	%
2006	0.40	%	280,054		16.177661		4,530,619	5.53	%	8.07	%
2005	0.40	%	252,932		14.969736		3,786,325	5.49	%	1.54	%
2004	0.40	%	473,190		14.742883		6,976,185	5.59	%	7.63	%
2003	0.40	%	105,483		13.697677		1,444,872	5.84	%	32.26	%
Royce Capital Fund – Micro-Cap Portfolio
2007	0.40	%	383,860		23.631757		9,071,286	1.50	%	3.56	%
2006	0.40	%	767,354		22.819241		17,510,436	0.17	%	20.59	%
2005	0.40	%	830,676		18.923254		15,719,093	0.60	%	11.17	%
2004	0.40	%	1,033,530		17.022607		17,593,375	0.00	%	13.39	%
2003	0.40	%	548,859		15.012271		8,239,620	0.00	%	48.57	%
T. Rowe Price Equity Income Portfolio – II
2007	0.40	%	834,360		18.033915		15,046,777	1.51	%	2.62	%
2006	0.40	%	1,391,756		17.574134		24,458,906	1.35	%	18.18	%
2005	0.40	%	1,649,340		14.871262		24,527,767	1.39	%	3.28	%
2004	0.40	%	1,661,986		14.398668		23,930,385	1.46	%	14.16	%
2003	0.40	%	1,166,336		12.612824		14,710,791	1.80	%	24.67	%
T. Rowe Price Mid-Cap Growth Portfolio – II
2007	0.40	%	34,870		23.360091		814,566	0.00	%	16.75	%
2006	0.40	%	256,586		20.007898		5,133,747	0.00	%	5.96	%
2005	0.40	%	453,782		18.882872		8,568,707	0.00	%	13.98	%
2004	0.40	%	754,450		16.566668		12,498,723	0.00	%	17.58	%
2003	0.40	%	513,748		14.089414		7,238,408	0.00	%	37.54	%
T. Rowe Price New America Growth Portfolio
2007	0.40	%	536,034		13.607980		7,294,340	0.00	%	13.32	%
2006	0.40	%	551,676		12.008095		6,624,578	0.04	%	6.90	%
2005	0.40	%	584,706		11.232593		6,567,765	0.00	%	4.06	%
2004	0.40	%	19,964		10.794628		215,504	0.00	%	7.95	% 05/03/04
T. Rowe Price Personal Strategy Balanced Portfolio
2007	0.40	%	340		10.847653		3,688	1.34	%	7.18	%
The Dreyfus Socially Responsible Growth Fund, Inc. – Initial Shares
2006	0.40	%	90		10.406467		937	0.11	%	8.77	%
2005	0.40	%	734		9.567773		7,023	0.00	%	3.20	%
2004	0.40	%	21,434		9.270823		198,711	0.40	%	5.79	%
2003	0.40	%	114,903		8.763701		1,006,976	0.11	%	25.50	%
Turner GVIT Growth Focus Fund – Class I
2003	0.40	%	48,390		3.293722		159,383	0.00	%	50.36	%
Van Eck Worldwide Insurance Trust – Emerging Markets Fund – Initial Class
2005	0.40	%	596		17.488050		10,423	0.71	%	31.47	%
2004	0.40	%	53,740		13.301843		714,841	0.53	%	25.39	%
2003	0.40	%	69,877		10.608507		741,291	0.11	%	53.57	%
Van Eck Worldwide Insurance Trust – Hard Assets Fund – Initial Class
2007	0.40	%	6,820		38.218809		260,652	0.11	%	44.77	%
2005	0.40	%	52		21.290146		1,107	0.31	%	51.07	%
2004	0.40	%	153,946		14.093195		2,169,591	0.31	%	23.73	%
2003	0.40	%	111,979		11.413041		1,278,021	0.41	%	44.50	%
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I
2007	0.40	%	68,018		21.088867		1,434,423	7.13	%	6.10	%
2006	0.40	%	81,282		19.875581		1,615,527	10.28	%	10.37	%
2005	0.40	%	83,166		18.008789		1,497,719	7.14	%	11.80	%
2004	0.40	%	122,976		16.107486		1,980,834	7.52	%	9.62	%
2003	0.40	%	200,179		14.693571		2,941,344	0.00	%	27.35	%

(Continued)

114

NATIONWIDE VLI SEPARATE ACCOUNT–4 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*		Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Van Kampen UIF – Mid Cap Growth Portfolio – class I
2007	0.40	%	44,500	$	11.139857	$	495,724	0.00	%	22.17	%
2006	0.40	%	44,880		9.118070		409,219	0.00	%	8.84	%
2005	0.40	%	49,068		8.377513		411,068	0.00	%	17.10	%
2004	0.40	%	30,098		7.154160		215,326	0.00	%	21.11	%
2003	0.40	%	142,586		5.907110		842,271	0.00	%	41.20	%
Van Kampen UIF – U.S. Real Estate Portfolio – Class I
2007	0.40	%	172,122		29.190018		5,024,244	1.11	%	-17.40	%
2006	0.40	%	290,660		35.340571		10,272,090	1.07	%	37.50	%
2005	0.40	%	377,610		25.703042		9,705,726	1.19	%	16.59	%
2004	0.40	%	716,826		22.046498		15,803,503	1.61	%	35.85	%
2003	0.40	%	698,195		16.228488		11,330,649	0.00	%	36.96	%
W&R Target Funds, Inc. – Growth Portfolio
2007	0.40	%	24		15.342459		368	0.00	%	25.31	%
2006	0.40	%	1,882		12.243877		23,043	0.00	%	4.62	%
W&R Target Funds, Inc. – Real Estate Securities Portfolio
2007	0.40	%	2,396		12.430983		29,785	1.28	%	-16.40	%
2006	0.40	%	2,546		14.870055		37,859	1.58	%	29.57	%
Wells Fargo AVT – Opportunity FundSM
2006	0.40	%	126		13.289662		1,674	0.00	%	11.77	%
2005	0.40	%	110,270		11.889981		1,311,108	0.00	%	7.45	%
2004	0.40	%	898,190		11.065086		9,938,550	0.00	%	17.75	%
2003	0.40	%	1,423,338		9.397220		13,375,420	0.08	%	36.46	%
Contract Owners’ Equity Total By Year
2007						$	4,818,135,017
2006						$	4,464,442,368
2005						$	3,947,899,004
2004						$	3,677,896,359
2003						$	3,032,894,218

* This represents the annual contract expense rate of the variable account for the period indicated and includes only those expenses that are charged through a reduction in the unit values. Excluded are expenses of the underlying mutual funds and charges made directly to contract owner accounts through the redemption of units.

** This represents the dividends for the period indicated, excluding distributions of capital gains, received by the subaccount from the underlying mutual fund, net of management fees assessed by the fund manager, divided by average net assets. The ratios exclude those expenses, such as mortality and expense charges or cost of insurance charges, that result in direct reductions to the contractholder accounts either through reductions in unit values or redemption of units. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the underlying fund in which the subaccounts invest.

*** This represents the total return for the period indicated, including changes in the value of the underlying mutual fund, which reflects the reduction of unit value for expenses assessed. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Investment options with a date notation indicate the effective date of that investment option in the Account. The total return is calculated for the period indicated or from the effective date through the end of the period.

115

Report of Independent Registered Public Accounting Firm

The Board of Directors of Nationwide Life Insurance Company and

Contract Owners of Nationwide VLI Separate Account-4:

We have audited the accompanying statement of assets, liabilities and contract owners’ equity of Nationwide VLI Separate Account-4 (comprised of the sub-accounts listed in note 1(b) (collectively, “the Accounts”)) as of December 31, 2007, and the related statements of operations and changes in contract owners’ equity, and the financial highlights for each of the periods indicated herein. These financial statements and financial highlights are the responsibility of the Accounts’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2007, by correspondence with the transfer agents of the underlying mutual funds. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Accounts as of December 31, 2007, and the results of their operations, changes in contract owners’ equity, and financial highlights for each of the periods indicated herein, in conformity with U.S. generally accepted accounting principles.

/S/ KPMG LLP

Columbus, Ohio

March 18, 2008

116

NATIONWIDE LIFE INSURANCE COMPANY HOME OFFICE: ONE NATIONWIDE PLAZA • COLUMBUS, OHIO 43215-2220   PRSRT STD U.S. POSTAGE PAID NATIONWIDE  

Nationwide^® is a registered federal service mark of Nationwide Mutual Insurance Company

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