NATIONWIDE^®

VARIABLE

ACCOUNT

Annual Report

to

Contract Owners

December 31, 2007

NATIONWIDE LIFE INSURANCE COMPANY

HOME OFFICE: COLUMBUS, OHIO

APO– 717–12/07

NATIONWIDE VARIABLE ACCOUNT

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2007

Assets:
Investments at fair value:
AIM Basic Balanced Fund – Investor Class (AIMBalance) 12,033 shares (cost $147,494)	$	159,681
AIM Dynamics Fund – Investor Class (AIMDynam) 284,591 shares (cost $4,581,980)		6,784,650
AIM Small Cap Growth Fund – Investor Class (AIMSCapGr) 16,854 shares (cost $527,144)		501,582
American Century Growth Fund – Investor Class (ACGro) 301,801 shares (cost $6,496,734)		7,961,518
American Century Income & Growth Fund – Class A (ACIncGroA) 87,713 shares (cost $2,698,849)		2,530,517
American Century Income & Growth Fund – Investor Class (ACIncGro) 192,052 shares (cost $5,424,181)		5,546,453
American Century International Growth Fund – Advisor Class (ACIntlGrA) 23,448 shares (cost $196,064)		323,816
American Century International Growth Fund – Investor Class (ACIntlGr) 110,626 shares (cost $899,871)		1,529,958
American Century Short-Term Government Fund – Investor Class (ACSTGvt) 269,551 shares (cost $2,538,661)		2,560,735
American Century Ultra ® Fund – Investor Class (ACUltra) 459,207 shares (cost $12,283,704)		11,452,624
American Century VP – International Fund – Class IV (ACVPInt4) 322,681 shares (cost $3,232,559)		3,823,773
Credit Suisse Global Fixed Income Fund – Common Shares (CSGIobFixInc) 72,121 shares (cost $710,468)		720,494
Credit Suisse Mid-Cap Core Fund – Common Class (CSMidCpGr) 72,239 shares (cost $1,935,635)		2,727,755
Delaware Delchester Fund – Institutional Class (DelDelchester) 123,356 shares (cost $412,294)		394,740
Dreyfus A Bonds Plus, Inc. (DryABonds) 150,199 shares (cost $2,068,164)		1,993,136
Dreyfus Appreciation Fund, Inc. (DryApp) 98,721 shares (cost $3,854,539)		4,412,816
Dreyfus Emerging Leaders Fund (DryELead) 444 shares (cost $16,830)		11,327
Dreyfus Premier Balanced Opportunity Fund – Class Z (DryBalOpp) 103,156 shares (cost $1,996,749)		1,822,762
Dreyfus S&P 500 Index Fund (DrySP500Ix) 388,186 shares (cost $13,056,310)		16,047,606
Evergreen Equity Income Fund – Class I (EvEqInc) 43,437 shares (cost $1,004,835)		949,526
Federated Equity Income Fund, Inc. – Class F Shares (FedEqIncome) 6,607 shares (cost $131,090)		136,835
Federated High Yield Trust (FedHiYld) 307,585 shares (cost $1,830,392)		1,793,218
Federated Intermediate Corporate Bond Fund – Institutional Service Shares (FedIntCorpBd) 79,396 shares (cost $796,069)		797,930
Federated Investment Series Funds, Inc. – Bond Fund – Class F Shares (FedBdFd) 251,496 shares (cost $2,258,651)		2,225,741
Fidelity® Advisor Balanced Fund – Class A (FidABalA) 32,352 shares (cost $509,161)		523,453

(Continued)

2

NATIONWIDE VARIABLE ACCOUNT

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

Fidelity® Advisor Balanced Fund – Class T (FidABalT) 85,598 shares (cost $1,364,758)	$	1,395,249
Fidelity® Advisor Equity Growth Fund – Class A (FidAEGroA) 21,705 shares (cost $1,112,060)		1,401,497
Fidelity® Advisor Equity Income Fund – Class A (FidAEqIncA) 147,038 shares (cost $4,157,013)		4,262,645
Fidelity® Advisor Equity Income Fund – Class T (FidAEqIncT) 130,197 shares (cost $3,685,644)		3,825,199
Fidelity® Advisor Growth Opportunities Fund – Class A (FidAGrOppA) 16,200 shares (cost $570,968)		682,850
Fidelity® Advisor Growth Opportunities Fund – Class T (FidAGrOppT) 93,712 shares (cost $2,832,391)		3,998,689
Fidelity® Advisor High Income Advantage Fund – Class T (FidAHiIncT) 142,535 shares (cost $1,416,260)		1,442,451
Fidelity® Advisor Overseas Fund – Class A (FidAOvA) 860 shares (cost $15,582)		20,205
Fidelity® Asset Manager™ (FidAsMgr) 146,447 shares (cost $2,259,131)		2,271,386
Fidelity® Capital & Income Fund (FidCapInc) 45,323 shares (cost $355,236)		393,403
Fidelity® Equity-Income Fund (FidEqInc) 168,834 shares (cost $8,425,871)		9,312,865
Fidelity® Magellan® Fund (FidMgln) 157,135 shares (cost $16,272,140)		14,750,230
Fidelity® Puritan® Fund (FidPurtn) 438,521 shares (cost $8,003,113)		8,345,046
Fidelity® VIP – High Income Portfolio – Initial Class (FidVIPHI) 3,888 shares (cost $23,224)		23,249
Fidelity® VIP – Overseas Portfolio – Service Class 2 R (FidVIPOvS2R) 143,952 shares (cost $3,248,242)		3,591,614
Franklin Mutual Series Fund, Inc. – Mutual Shares Fund – Class A (FranMutSer) 396,162 shares (cost $9,610,236)		9,963,467
Franklin Small-Mid Cap Growth Fund I – Class A (FranSmMCpGr) 55,635 shares (cost $2,030,243)		1,970,032
Franklin Templeton VIP – Foreign Securities Fund – Class 3 (FrVIPForSec3) 226,614 shares (cost $3,769,928)		4,573,079
Franklin Value Investors Trust – Balance Sheet Investment Fund – Class A (FranBSInv) 77,766 shares (cost $5,012,495)		4,507,340
Janus Adviser Series – Balanced Fund – Class S (JAdvBal) 43,304 shares (cost $1,099,334)		1,134,554
Janus Adviser Series – International Growth Fund – Class S (JAdvIntlGr) 1,253 shares (cost $37,358)		80,742
Janus Adviser Series – Worldwide Fund – Class S (JAdWrld) 13,651 shares (cost $350,039)		493,607
Janus Equity Funds – Janus Fund (JanFund) 231,707 shares (cost $6,206,406)		7,474,875
Janus Equity Funds – Janus Twenty Fund (Jan20Fd) 358,596 shares (cost $18,865,184)		26,571,947
Janus Equity Funds – Janus Worldwide Fund (JanWrldwde) 94,560 shares (cost $4,575,529)		5,184,716
Lazard Small Cap Portfolio – Open Shares (LazSmCap) 196,025 shares (cost $3,040,936)		2,240,571
Lehman Brothers Short Duration Bond Fund – Investor Class (LBShrtDBd) 116,382 shares (cost $1,068,522)		1,059,074
MFS® Strategic Income Fund – Class A (MFSStratInc) 133,029 shares (cost $898,294)		876,658
Nationwide Bond Fund – Class D (NWBondD) 150,184 shares (cost $1,447,986)		1,447,774

(Continued)

3

NATIONWIDE VARIABLE ACCOUNT

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

Nationwide Bond Index Fund – Class A (NWBondInx) 29,610 shares (cost $321,045)	$	324,230
Nationwide Fund – Class D (NWFund) 274,251 shares (cost $4,980,263)		4,648,563
Nationwide Government Bond Fund – Class D (NWGovBd) 353,934 shares (cost $3,644,318)		3,709,224
Nationwide Growth Fund – Class A (NWGrowthA) 60,255 shares (cost $460,622)		532,054
Nationwide Growth Fund – Class D (NWGrowthD) 78,969 shares (cost $479,049)		713,876
Nationwide International Index Fund – Class A (NWIntIndx) 2,159 shares (cost $16,958)		24,416
Nationwide Investor Destinations Aggressive Fund – Service Class (NWIDAggr) 193,513 shares (cost $1,916,660)		2,107,357
Nationwide Investor Destinations Conservative Fund – Service Class (NWIDCon) 219,090 shares (cost $2,260,624)		2,261,010
Nationwide Investor Destinations Moderate Fund – Service Class (NWIDMod) 723,899 shares (cost $7,429,369)		7,897,740
Nationwide Investor Destinations Moderately Aggressive Fund – Service Class (NWIDModAgg) 425,523 shares (cost $4,361,204)		4,736,075
Nationwide Investor Destinations Moderately Conservative Fund – Service Class (NWIDModCon) 237,328 shares (cost $2,450,873)		2,496,692
Nationwide Large Cap Value Fund – Class A (NWLgCpVal) 221,074 shares (cost $3,025,311)		2,562,245
Nationwide Mid Cap Market Index Fund – Class A (NWMdCpMkt) 104,414 shares (cost $1,580,611)		1,554,720
Nationwide Money Market Fund – Prime Shares (NWMyMktP) 10,974,424 shares (cost $10,974,424)		10,974,424
Nationwide Money Market Fund – Service Class (NWMyMktS) 8,125,723 shares (cost $8,125,723)		8,125,723
Nationwide S&P 500 Index Fund – Service Class (NWSP500Indx) 316,900 shares (cost $3,458,155)		3,878,857
Nationwide Small Cap Fund – Class A (NWSmCap) 238,894 shares (cost $4,572,923)		3,800,808
Nationwide Small Cap Index Fund – Class A (NWSmCapIx) 86,206 shares (cost $1,105,854)		1,012,062
Nationwide Value Opportunities Fund – Class A (NWValOpp) 20,383 shares (cost $287,233)		220,949
Nationwide VIT – Investor Destinations Aggressive Fund – Class II (NVITIDAgg2) 93,735 shares (cost $1,238,620)		1,274,790
Nationwide VIT – Investor Destinations Conservative Fund – Class II (NVITIDCon2) 10,750 shares (cost $112,159)		111,804
Nationwide VIT – Investor Destinations Moderate Fund – Class II (NVITIDMod2) 120,793 shares (cost $1,453,436)		1,502,663
Nationwide VIT – Investor Destinations Moderately Aggressive Fund – Class II (NVITIDModAg2) 159,422 shares (cost $2,047,340)		2,126,694
Nationwide VIT – Investor Destinations Moderately Conservative Fund – Class II (NVITIDModCon2) 19,581 shares (cost $222,942)		222,248
Nationwide VIT – J.P. Morgan Balanced Fund – Class I (NVITJPBal) 18,799 shares (cost $196,380)		205,848
Neuberger Berman Genesis Fund – Trust Class (NBGen) 333,622 shares (cost $15,093,922)		16,440,912
Neuberger Berman Guardian Fund – Investor Class (NBGuard) 137,363 shares (cost $2,146,626)		2,457,423
Neuberger Berman Guardian Fund – Trust Class (NBGuardT) 20,478 shares (cost $261,036)		287,924
Neuberger Berman Partners Fund – Investor Class (NBPart) 181,293 shares (cost $4,576,132)		5,950,050

(Continued)

4

NATIONWIDE VARIABLE ACCOUNT

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

Neuberger Berman Partners Fund – Trust Class (NBPartT) 17,342 shares (cost $393,585)	$	438,752
Neuberger Berman Socially Responsive Fund – Trust Class (NBSocRes) 101,162 shares (cost $1,740,690)		1,861,382
Oppenheimer Capital Appreciation Fund A (OppCapApA) 45,625 shares (cost $1,999,238)		2,345,118
Oppenheimer Champion Income Fund A (OppChpIncA) 28,076 shares (cost $262,916)		249,316
Oppenheimer Global Fund A (OppGlobA) 143,499 shares (cost $7,797,484)		10,412,314
Oppenheimer Strategic Income Fund A (OppStrIncA) 188,803 shares (cost $812,235)		828,846
Oppenheimer VAF – Global Securities Fund – Class 4 (OppGlSec4) 230,484 shares (cost $7,422,867)		8,361,970
Phoenix Balanced Fund – Class A (PhxBalFd) 64,235 shares (cost $940,580)		908,281
PIMCO Total Return Fund – Class A (PimTotRetA) 343,105 shares (cost $3,627,566)		3,667,795
Putnam International Equity Fund – Class A (PutIntlEq) 209 shares (cost $4,805)		5,744
Putnam Voyager Fund – Class A (PutVoyager) 3,606 shares (cost $65,448)		69,531
Templeton Foreign Fund – Class A (TemForeign) 356,907 shares (cost $4,191,875)		4,468,479
The Dreyfus Premier Third Century Fund, Inc. – Class Z (Dry3dCen) 87,308 shares (cost $660,380)		882,687
Van Kampen Growth and Income Fund – Class A (VKGroInc) 161,539 shares (cost $3,395,135)		3,432,706
Van Kampen Mid Cap Growth Fund – Class A (VKMidCapGro) 58,523 shares (cost $1,663,908)		1,683,126
Van Kampen Real Estate Securities Fund – Class A (VKRealEstSec) 77,881 shares (cost $2,137,488)		1,475,847
Waddell & Reed Advisors Small Cap Fund – Class A (WRAdSmCap) 22,417 shares (cost $323,001)		288,056
Wells Fargo Advantage FundsSM – Common Stock Fund – Class Z (WFComStk) 224,894 shares (cost $4,723,037)		4,102,061
Wells Fargo Advantage FundsSM – Growth and Income Fund – Investor Class (WFGrInc) 6,649 shares (cost $158,105)		162,237
Wells Fargo Advantage FundsSM – Growth Fund – Investor Class (WFGrowth) 22,623 shares (cost $565,555)		654,922
Wells Fargo Advantage FundsSM – Large Cap Growth Fund – Investor Class (WFLgCpGr) 63,786 shares (cost $1,334,897)		1,920,604
Wells Fargo Advantage FundsSM – Mid Cap Growth Fund – Class Z (WFMidCpGr) 68,381 shares (cost $453,958)		402,765
Total investments		341,811,580
Accounts receivable		1,854
Total assets		341,813,434
Accounts payable		–
Contract owners’ equity (note 4)	$	341,813,434

See accompanying notes to financial statements.

5

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF OPERATIONS

Year Ended December 31, 2007

Investment activity:		Total		AIMBalance		AIMDynam		AIMSCapGr		ACGro		ACIncGroA		ACIncGro		ACIntlGrA
Reinvested dividends	$	5,581,566		4,726		–		–		10,166		33,263		90,520		1,090
Mortality and expense risk charges (note 2)		(4,446,019	)	(2,606	)	(86,459	)	(5,900	)	(103,889	)	(32,548	)	(83,549	)	(3,641	)
Net investment income (loss)		1,135,547		2,120		(86,459	)	(5,900	)	(93,723	)	715		6,971		(2,551	)
Proceeds from mutual fund shares sold		96,075,113		73,607		1,174,598		176,487		1,822,921		567,953		1,521,150		58,675
Cost of mutual fund shares sold		(88,742,120	)	(65,921	)	(542,815	)	(171,174	)	(2,552,877	)	(484,855	)	(1,403,685	)	(34,181	)
Realized gain (loss) on investments		7,332,993		7,686		631,783		5,313		(729,956	)	83,098		117,465		24,494
Change in unrealized gain (loss) on investments		1,624,475		(7,136	)	155,189		(9,150	)	2,091,226		(437,768	)	(848,845	)	9,997
Net gain (loss) on investments		8,957,468		550		786,972		(3,837	)	1,361,270		(354,670	)	(731,380	)	34,491
Reinvested capital gains		19,775,803		–		–		52,919		–		301,221		669,840		16,399
Net increase (decrease) in contract owners’ equity resulting from operations	$	29,868,818		2,670		700,513		43,182		1,267,547		(52,734	)	(54,569	)	48,339
Investment activity:		ACIntlGr		ACSTGvt		ACUltra		ACVPInt4		CSGIobFixInc		CSMidCpGr		DelDelchester		DryABonds
Reinvested dividends	$	8,790		121,153		–		15,035		39,618		–		37,593		103,871
Mortality and expense risk charges (note 2)		(20,851	)	(33,103	)	(145,206	)	(39,882	)	(8,614	)	(38,659	)	(5,941	)	(29,079	)
Net investment income (loss)		(12,061	)	88,050		(145,206	)	(24,847	)	31,004		(38,659	)	31,652		74,792
Proceeds from mutual fund shares sold		366,028		1,165,525		3,018,880		669,386		304,014		851,120		163,296		615,445
Cost of mutual fund shares sold		(187,998	)	(1,197,808	)	(3,520,466	)	(490,434	)	(317,014	)	(772,496	)	(163,249	)	(620,661	)
Realized gain (loss) on investments		178,030		(32,283	)	(501,586	)	178,952		(13,000	)	78,624		47		(5,216	)
Change in unrealized gain (loss) on investments		(10,612	)	78,165		(55,209	)	263,659		23,418		253,625		(30,072	)	(25,322	)
Net gain (loss) on investments		167,418		45,882		(556,795	)	442,611		10,418		332,249		(30,025	)	(30,538	)
Reinvested capital gains		77,194		–		2,772,086		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	232,551		133,932		2,070,085		417,764		41,422		293,590		1,627		44,254

(Continued)

6

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:		DryApp		DryELead		DryBalOpp		DrySP500Ix		EvEqInc		FedEqIncome		FedHiYld		FedIntCorpBd
Reinvested dividends	$	60,666		–		39,176		256,341		15,188		3,692		164,504		37,948
Mortality and expense risk charges (note 2)		(57,393	)	(228	)	(23,721	)	(231,706	)	(13,081	)	(1,835	)	(28,819	)	(9,078	)
Net investment income (loss)		3,273		(228	)	15,455		24,635		2,107		1,857		135,685		28,870
Proceeds from mutual fund shares sold		1,236,101		10,168		301,941		4,182,023		282,161		51,659		1,629,194		276,716
Cost of mutual fund shares sold		(887,174	)	(11,297	)	(285,398	)	(3,981,533	)	(261,907	)	(35,216	)	(1,632,988	)	(283,410	)
Realized gain (loss) on investments		348,927		(1,129	)	16,543		200,490		20,254		16,443		(3,794	)	(6,694	)
Change in unrealized gain (loss) on investments		(238,338	)	(2,003	)	(235,757	)	465,771		(81,271	)	(19,771	)	(80,035	)	11,593
Net gain (loss) on investments		110,589		(3,132	)	(219,214	)	666,261		(61,017	)	(3,328	)	(83,829	)	4,899
Reinvested capital gains		122,655		2,015		268,917		1,765		76,290		4,100		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	236,517		(1,345	)	65,158		692,661		17,380		2,629		51,856		33,769
Investment activity:		FedBdFd		FidABalA		FidABalT		FidAEGroA		FidAEqIncA		FidAEqIncT		FidAGrOppA		FidAGrOppT
Reinvested dividends	$	116,836		9,698		20,803		–		48,630		35,906		–		–
Mortality and expense risk charges (note 2)		(28,159	)	(6,323	)	(17,555	)	(13,241	)	(52,003	)	(57,219	)	(7,277	)	(48,340	)
Net investment income (loss)		88,677		3,375		3,248		(13,241	)	(3,373	)	(21,313	)	(7,277	)	(48,340	)
Proceeds from mutual fund shares sold		599,874		141,364		150,886		268,384		878,340		1,147,537		231,957		887,400
Cost of mutual fund shares sold		(615,725	)	(117,103	)	(132,144	)	(197,525	)	(667,713	)	(775,306	)	(199,278	)	(744,386	)
Realized gain (loss) on investments		(15,851	)	24,261		18,742		70,859		210,627		372,231		32,679		143,014
Change in unrealized gain (loss) on investments		4,974		(26,386	)	(40,614	)	194,202		(508,785	)	(637,618	)	90,174		593,713
Net gain (loss) on investments		(10,877	)	(2,125	)	(21,872	)	265,061		(298,158	)	(265,387	)	122,853		736,727
Reinvested capital gains		–		40,136		103,047		–		414,769		399,243		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	77,800		41,386		84,423		251,820		113,238		112,543		115,576		688,387

(Continued)

7

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:		FidAHiIncT		FidAOvA		FidAsMgr		FidCapInc		FidEqInc		FidMgln		FidPurtn		FidVIPHI
Reinvested dividends	$	117,951		257		74,485		24,977		177,067		65,584		252,674		1,945
Mortality and expense risk charges (note 2)		(23,017	)	(240	)	(32,440	)	(5,382	)	(140,888	)	(198,551	)	(120,415	)	(304	)
Net investment income (loss)		94,934		17		42,045		19,595		36,179		(132,967	)	132,259		1,641
Proceeds from mutual fund shares sold		1,072,242		368		538,357		81,726		2,595,383		3,790,444		2,040,981		324
Cost of mutual fund shares sold		(978,399	)	(253	)	(483,221	)	(87,565	)	(2,079,103	)	(5,375,096	)	(1,874,036	)	(360	)
Realized gain (loss) on investments		93,843		115		55,136		(5,839	)	516,280		(1,584,652	)	166,945		(36	)
Change in unrealized gain (loss) on investments		(150,012	)	1,189		(121,428	)	(3,031	)	(998,260	)	2,366,014		(540,884	)	(1,271	)
Net gain (loss) on investments		(56,169	)	1,304		(66,292	)	(8,870	)	(481,980	)	781,362		(373,939	)	(1,307	)
Reinvested capital gains		–		1,410		149,123		–		545,321		1,772,537		684,869		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	38,765		2,731		124,876		10,725		99,520		2,420,932		443,189		334
Investment activity:		FidVIPOvS2R		FranMutSer		FranSmMCpGr		FrVIPForSec3		FranBSInv		JAdvBal		JAdvIntlGr		JAdWrld
Reinvested dividends	$	97,075		251,288		–		98,559		47,397		29,135		1,830		890
Mortality and expense risk charges (note 2)		(39,996	)	(128,603	)	(26,482	)	(59,522	)	(59,690	)	(13,785	)	(922	)	(6,320	)
Net investment income (loss)		57,079		122,685		(26,482	)	39,037		(12,293	)	15,350		908		(5,430	)
Proceeds from mutual fund shares sold		1,012,347		1,879,838		939,557		1,245,663		1,069,398		358,388		3,850		90,872
Cost of mutual fund shares sold		(828,614	)	(1,337,245	)	(712,038	)	(896,786	)	(875,519	)	(286,447	)	(1,859	)	(62,867	)
Realized gain (loss) on investments		183,733		542,593		227,519		348,877		193,879		71,941		1,991		28,005
Change in unrealized gain (loss) on investments		(13,684	)	(833,929	)	(280,852	)	13,966		(825,034	)	(71,849	)	10,190		18,821
Net gain (loss) on investments		170,049		(291,336	)	(53,333	)	362,843		(631,155	)	92		12,181		46,826
Reinvested capital gains		197,910		327,418		315,196		213,735		401,998		84,892		2,915		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	425,038		158,767		235,381		615,615		(241,450	)	100,334		16,004		41,396

(Continued)

8

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:		JanFund		Jan20Fd		JanWrldwde		LazSmCap		LBShrtDBd		MFSStratInc		NWBondD		NWBondInx
Reinvested dividends	$	37,518		52,098		27,177		–		55,941		51,292		77,659		13,969
Mortality and expense risk charges (note 2)		(98,830	)	(305,997	)	(74,518	)	(34,212	)	(14,375	)	(11,709	)	(20,018	)	(3,865	)
Net investment income (loss)		(61,312	)	(253,899	)	(47,341	)	(34,212	)	41,566		39,583		57,641		10,104
Proceeds from mutual fund shares sold		1,407,553		5,202,589		1,140,404		691,895		463,798		172,306		580,972		109,773
Cost of mutual fund shares sold		(1,609,987	)	(6,840,702	)	(1,264,718	)	(925,564	)	(488,597	)	(174,208	)	(585,634	)	(112,403	)
Realized gain (loss) on investments		(202,434	)	(1,638,113	)	(124,314	)	(233,669	)	(24,799	)	(1,902	)	(4,662	)	(2,630	)
Change in unrealized gain (loss) on investments		1,243,697		8,848,036		626,132		(259,802	)	25,834		(18,310	)	19,296		7,057
Net gain (loss) on investments		1,041,263		7,209,923		501,818		(493,471	)	1,035		(20,212	)	14,634		4,427
Reinvested capital gains		–		–		–		349,107		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	979,951		6,956,024		454,477		(178,576	)	42,601		19,371		72,275		14,531
Investment activity:		NWFund		NWGovBd		NWGrowthA		NWGrowthD		NWIntIndx		NWIDAggr		NWIDCon		NWIDMod
Reinvested dividends	$	51,323		165,294		1,131		2,102		583		58,292		83,337		311,294
Mortality and expense risk charges (note 2)		(62,769	)	(44,900	)	(6,027	)	(9,940	)	(295	)	(23,132	)	(23,523	)	(105,914	)
Net investment income (loss)		(11,446	)	120,394		(4,896	)	(7,838	)	288		35,160		59,814		205,380
Proceeds from mutual fund shares sold		1,059,308		1,140,409		175,929		291,936		1,490		146,163		544,421		2,605,418
Cost of mutual fund shares sold		(1,090,629	)	(1,184,284	)	(146,810	)	(219,511	)	(1,003	)	(103,283	)	(523,599	)	(2,142,406	)
Realized gain (loss) on investments		(31,321	)	(43,875	)	29,119		72,425		487		42,880		20,822		463,012
Change in unrealized gain (loss) on investments		(396,555	)	151,176		49,007		57,542		542		(65,173	)	(22,522	)	(433,831	)
Net gain (loss) on investments		(427,876	)	107,301		78,126		129,967		1,029		(22,293	)	(1,700	)	29,181
Reinvested capital gains		752,399		–		–		–		667		70,374		28,646		195,425
Net increase (decrease) in contract owners’ equity resulting from operations	$	313,077		227,695		73,230		122,129		1,984		83,241		86,760		429,986

(Continued)

9

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:		NWIDModAgg		NWIDModCon		NWLgCpVal		NWMdCpMkt		NWMyMktP		NWMyMktS		NWSP500Indx		NWSmCap
Reinvested dividends	$	136,717		90,060		28,381		19,364		508,850		331,039		57,612		29,502
Mortality and expense risk charges (note 2)		(52,649	)	(28,779	)	(37,994	)	(19,339	)	(141,376	)	(79,424	)	(50,915	)	(67,122	)
Net investment income (loss)		84,068		61,281		(9,613	)	25		367,474		251,615		6,697		(37,620	)
Proceeds from mutual fund shares sold		436,028		473,433		993,380		480,356		6,803,350		3,268,389		1,277,946		2,304,858
Cost of mutual fund shares sold		(349,025	)	(426,034	)	(918,019	)	(375,910	)	(6,803,350	)	(3,268,389	)	(993,600	)	(1,782,373	)
Realized gain (loss) on investments		87,003		47,399		75,361		104,446		–		–		284,346		522,485
Change in unrealized gain (loss) on investments		(104,315	)	(55,863	)	(455,083	)	(125,945	)	–		–		(204,541	)	(1,574,727	)
Net gain (loss) on investments		(17,312	)	(8,464	)	(379,722	)	(21,499	)	–		–		79,805		(1,052,242	)
Reinvested capital gains		117,069		59,496		298,055		129,419		–		–		57,863		814,715
Net increase (decrease) in contract owners’ equity resulting from operations	$	183,825		112,313		(91,280	)	107,945		367,474		251,615		144,365		(275,147	)
Investment activity:		NWSmCapIx		NWValOpp		NVITIDAgg2		NVITIDCon2		NVITIDMod2		NVITIDModAg2		NVITIDModCon2		NVITJPBal
Reinvested dividends	$	15,411		–		21,681		3,058		37,667		47,460		6,134		4,455
Mortality and expense risk charges (note 2)		(14,940	)	(3,083	)	(14,319	)	(1,026	)	(17,923	)	(27,661	)	(2,541	)	(2,637	)
Net investment income (loss)		471		(3,083	)	7,362		2,032		19,744		19,799		3,593		1,818
Proceeds from mutual fund shares sold		711,846		74,494		184,890		2,004		248,488		933,332		66,623		101,341
Cost of mutual fund shares sold		(626,039	)	(81,823	)	(151,597	)	(1,980	)	(219,667	)	(792,853	)	(63,362	)	(85,932	)
Realized gain (loss) on investments		85,807		(7,329	)	33,293		24		28,821		140,479		3,261		15,409
Change in unrealized gain (loss) on investments		(160,068	)	(49,786	)	(37,346	)	(817	)	(20,146	)	(82,576	)	(3,575	)	(13,072	)
Net gain (loss) on investments		(74,261	)	(57,115	)	(4,053	)	(793	)	8,675		57,903		(314	)	2,337
Reinvested capital gains		58,677		39,736		32,690		1,695		21,504		35,843		4,775		5,105
Net increase (decrease) in contract owners’ equity resulting from operations	$	(15,113	)	(20,462	)	35,999		2,934		49,923		113,545		8,054		9,260

(Continued)

10

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:		NBGen		NBGuard		NBGuardT		NBPart		NBPartT		NBSocRes		OppCapApA		OppChpIncA
Reinvested dividends	$	22,761		16,178		1,817		20,367		1,304		9,408		–		18,128
Mortality and expense risk charges (note 2)		(203,678	)	(35,784	)	(2,827	)	(82,524	)	(6,304	)	(20,179	)	(25,187	)	(3,166	)
Net investment income (loss)		(180,917	)	(19,606	)	(1,010	)	(62,157	)	(5,000	)	(10,771	)	(25,187	)	14,962
Proceeds from mutual fund shares sold		4,019,968		742,117		18,558		1,727,625		270,801		430,901		442,515		51,062
Cost of mutual fund shares sold		(2,794,615	)	(533,915	)	(9,446	)	(1,087,079	)	(213,829	)	(358,811	)	(361,131	)	(51,627	)
Realized gain (loss) on investments		1,225,353		208,202		9,112		640,546		56,972		72,090		81,384		(565	)
Change in unrealized gain (loss) on investments		(431,803	)	(291,467	)	(26,296	)	(238,764	)	(11,700	)	(16,349	)	154,103		(17,475	)
Net gain (loss) on investments		793,550		(83,265	)	(17,184	)	401,782		45,272		55,741		235,487		(18,040	)
Reinvested capital gains		2,394,812		273,304		31,828		209,326		15,448		57,072		47,024		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	3,007,445		170,433		13,634		548,951		55,720		102,042		257,324		(3,078	)
Investment activity:		OppGlobA		OppStrIncA		OppGlSec4		PhxBalFd		PimTotRetA		PutIntlEq		PutVoyager		TemForeign
Reinvested dividends	$	118,517		47,916		96,089		21,353		167,476		154		–		73,026
Mortality and expense risk charges (note 2)		(152,031	)	(8,476	)	(105,414	)	(12,168	)	(42,012	)	(82	)	(669	)	(58,808	)
Net investment income (loss)		(33,514	)	39,440		(9,325	)	9,185		125,464		72		(669	)	14,218
Proceeds from mutual fund shares sold		3,286,559		118,412		1,622,316		184,093		921,923		86		24,624		1,289,141
Cost of mutual fund shares sold		(2,035,816	)	(115,974	)	(1,120,273	)	(159,948	)	(960,148	)	(55	)	(20,982	)	(930,524	)
Realized gain (loss) on investments		1,250,743		2,438		502,043		24,145		(38,225	)	31		3,642		358,617
Change in unrealized gain (loss) on investments		(1,244,434	)	12,169		(508,626	)	(54,297	)	131,321		(645	)	(944	)	(661,938	)
Net gain (loss) on investments		6,309		14,607		(6,583	)	(30,152	)	93,096		(614	)	2,698		(303,321	)
Reinvested capital gains		629,568		–		418,008		59,797		23,374		912		–		988,182
Net increase (decrease) in contract owners’ equity resulting from operations	$	602,363		54,047		402,100		38,830		241,934		370		2,029		699,079

(Continued)

11

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:		Dry3dCen			VKGroInc		VKMidCapGro		VKRealEstSec		WRAdSmCap		WFComStk		WFGrInc		WFGrowth
Reinvested dividends	$		3,816		63,317		–		30,314		–		25,941		956		–
Mortality and expense risk charges (note 2)			(11,844	)	(39,395	)	(13,490	)	(30,166	)	(3,556	)	(55,214	)	(2,301	)	(6,485	)
Net investment income (loss)			(8,028	)	23,922		(13,490	)	148		(3,556	)	(29,273	)	(1,345	)	(6,485	)
Proceeds from mutual fund shares sold			115,609		631,442		347,937		1,866,582		211,881		1,181,677		97,879		257,279
Cost of mutual fund shares sold			(106,990	)	(507,091	)	(325,570	)	(1,535,568	)	(202,902	)	(932,568	)	(83,018	)	(222,648	)
Realized gain (loss) on investments			8,619		124,351		22,367		331,014		8,979		249,109		14,861		34,631
Change in unrealized gain (loss) on investments			53,815		(262,524	)	22,190		(1,165,651	)	(21,762	)	(530,091	)	(8,381	)	79,411
Net gain (loss) on investments			62,434		(138,173	)	44,557		(834,637	)	(12,783	)	(280,982	)	6,480		114,042
Reinvested capital gains			–		154,336		162,249		430,224		34,680		677,138		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$		54,406		40,085		193,316		(404,265	)	18,341		366,883		5,135		107,557
Investment activity:		WFLgCpGr			WFMidCpGr
Reinvested dividends	$		–		–
Mortality and expense risk charges (note 2)			(25,673	)	(4,372	)
Net investment income (loss)			(25,673	)	(4,372	)
Proceeds from mutual fund shares sold			432,140		142,336
Cost of mutual fund shares sold			(344,367	)	(140,789	)
Realized gain (loss) on investments			87,773		1,547
Change in unrealized gain (loss) on investments			235,259		(25,872	)
Net gain (loss) on investments			323,032		(24,325	)
Reinvested capital gains			–		75,341
Net increase (decrease) in contract owners’ equity resulting from operations	$		297,359		46,644

See accompanying notes to financial statements.

12

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2007 and 2006

		Total				AIMBalance				AIMDynam				AIMSCapGr
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	1,135,547		797,505		2,120		2,616		(86,459	)	(80,616	)	(5,900	)	(5,171	)
Realized gain (loss) on investments		7,332,993		(503,657	)	7,686		7,503		631,783		299,697		5,313		(23,240	)
Change in unrealized gain (loss) on investments		1,624,475		18,740,537		(7,136	)	12,394		155,189		625,070		(9,150	)	(16,411	)
Reinvested capital gains		19,775,803		15,798,752		–		–		–		–		52,919		33,100
Net increase (decrease) in contract owners’ equity resulting from operations		29,868,818		34,833,137		2,670		22,513		700,513		844,151		43,182		(11,722	)
Equity transactions:
Purchase payments received from contract owners (note 3)		26,350,704		32,346,562		672		48,819		380,090		538,595		13,653		81,788
Transfers between funds		–		–		(53,893	)	(118,804	)	350,269		(166,325	)	86,302		466,133
Redemptions (note 3)		(69,534,612	)	(59,456,305	)	(15,041	)	(34,563	)	(1,149,363	)	(785,672	)	(114,101	)	(63,060	)
Annuity benefits		(11,771	)	(10,955	)	–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(308,725	)	(336,146	)	–		–		(6,713	)	(7,019	)	–		–
Contingent deferred sales charges (note 2)		(238,776	)	(224,610	)	(89	)	(100	)	(4,036	)	(3,808	)	(1,563	)	(189	)
Adjustments to maintain reserves		(11,581	)	6,452		–		(10	)	(59	)	(134	)	26		1,116
Net equity transactions		(43,754,761	)	(27,675,002	)	(68,351	)	(104,658	)	(429,812	)	(424,363	)	(15,683	)	485,788
Net change in contract owners’ equity		(13,885,943	)	7,158,135		(65,681	)	(82,145	)	270,701		419,788		27,499		474,066
Contract owners’ equity beginning of period		355,699,377		348,541,242		225,370		307,515		6,513,896		6,094,108		474,066		–
Contract owners’ equity end of period	$	341,813,434		355,699,377		159,689		225,370		6,784,597		6,513,896		501,565		474,066
CHANGES IN UNITS:
Beginning units		18,895,154		20,043,511		20,074		29,943		618,013		672,720		46,426		–
Units purchased		3,908,575		5,509,615		267		7,148		91,381		144,639		14,488		92,504
Units redeemed		(5,734,626	)	(6,657,972	)	(6,262	)	(17,017	)	(128,302	)	(199,346	)	(16,302	)	(46,078	)
Ending units		17,069,103		18,895,154		14,079		20,074		581,092		618,013		44,612		46,426

(Continued)

13

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		AIMSmCoGr			ACGro				ACIncGroA				ACIncGro
Investment activity:		2007	2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	–	(1,947	)	(93,723	)	(98,015	)	715		11,761		6,971		36,106
Realized gain (loss) on investments		–	134,390		(729,956	)	(823,407	)	83,098		107,554		117,465		(55,782	)
Change in unrealized gain (loss) on investments		–	(58,404	)	2,091,226		1,434,086		(437,768	)	138,127		(848,845	)	676,030
Reinvested capital gains		–	–		–		–		301,221		120,913		669,840		304,587
Net increase (decrease) in contract owners’ equity resulting from operations		–	74,039		1,267,547		512,664		(52,734	)	378,355		(54,569	)	960,941
Equity transactions:
Purchase payments received from contract owners (note 3)		–	16,011		283,864		444,904		310,183		218,114		305,613		451,242
Transfers between funds		–	(877,210	)	(6,084	)	(71,111	)	(25,020	)	(400,216	)	(123,705	)	(250,745	)
Redemptions (note 3)		–	(49,151	)	(1,641,910	)	(1,097,524	)	(382,402	)	(188,895	)	(1,315,486	)	(1,297,800	)
Annuity benefits		–	–		(11,372	)	(10,601	)	–		–		–		–
Annual contract maintenance charges (note 2)		–	–		(8,844	)	(10,112	)	–		–		(8,706	)	(9,892	)
Contingent deferred sales charges (note 2)		–	(5	)	(3,267	)	(2,580	)	(3,732	)	(2,453	)	(2,520	)	(793	)
Adjustments to maintain reserves		–	(1	)	(13,438	)	4,228		(31	)	(110	)	5		(9	)
Net equity transactions		–	(910,356	)	(1,401,051	)	(742,796	)	(101,002	)	(373,560	)	(1,144,799	)	(1,107,997	)
Net change in contract owners’ equity		–	(836,317	)	(133,504	)	(230,132	)	(153,736	)	4,795		(1,199,368	)	(147,056	)
Contract owners’ equity beginning of period		–	836,317		8,095,710		8,325,842		2,684,228		2,679,433		6,745,819		6,892,875
Contract owners’ equity end of period	$	–	–		7,962,206		8,095,710		2,530,492		2,684,228		5,546,451		6,745,819
CHANGES IN UNITS:
Beginning units		–	116,299		221,404		218,579		246,562		283,932		302,858		357,908
Units purchased		–	22,635		26,718		133,073		48,177		57,241		25,273		32,428
Units redeemed		–	(138,934	)	(68,363	)	(130,248	)	(58,065	)	(94,611	)	(75,080	)	(87,478	)
Ending units		–	–		179,759		221,404		236,674		246,562		253,051		302,858

(Continued)

14

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		ACIntlGrA				ACIntlGr				ACSTGvt				ACUltra
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(2,551	)	(1,939	)	(12,061	)	(9,427	)	88,050		84,968		(145,206	)	(174,316	)
Realized gain (loss) on investments		24,494		21,014		178,030		157,316		(32,283	)	(23,152	)	(501,586	)	(1,964,883	)
Change in unrealized gain (loss) on investments		9,997		49,867		(10,612	)	202,427		78,165		14,597		(55,209	)	564,132
Reinvested capital gains		16,399		–		77,194		–		–		–		2,772,086		835,593
Net increase (decrease) in contract owners’ equity resulting from operations		48,339		68,942		232,551		350,316		133,932		76,413		2,070,085		(739,474	)
Equity transactions:
Purchase payments received from contract owners (note 3)		–		–		(8	)	91		312,314		268,335		489,070		782,715
Transfers between funds		(16,687	)	(53,253	)	(23,258	)	(102,166	)	(243,021	)	(170,844	)	(899,590	)	(1,312,598	)
Redemptions (note 3)		(37,772	)	(17,261	)	(318,846	)	(269,888	)	(373,611	)	(335,785	)	(2,228,309	)	(2,737,375	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		–		–		(2,068	)	(2,303	)	(1,946	)	(2,237	)	(13,505	)	(16,636	)
Contingent deferred sales charges (note 2)		(545	)	(646	)	(364	)	(512	)	(1,153	)	(1,214	)	(6,929	)	(7,570	)
Adjustments to maintain reserves		(4	)	(23	)	(37	)	11		4,061		(58	)	(61	)	(191	)
Net equity transactions		(55,008	)	(71,183	)	(344,581	)	(374,767	)	(303,356	)	(241,803	)	(2,659,324	)	(3,291,655	)
Net change in contract owners’ equity		(6,669	)	(2,241	)	(112,030	)	(24,451	)	(169,424	)	(165,390	)	(589,239	)	(4,031,129	)
Contract owners’ equity beginning of period		330,497		332,738		1,641,978		1,666,429		2,733,820		2,899,210		12,041,818		16,072,947
Contract owners’ equity end of period	$	323,828		330,497		1,529,948		1,641,978		2,564,396		2,733,820		11,452,579		12,041,818
CHANGES IN UNITS:
Beginning units		34,049		42,287		58,486		73,235		158,143		169,897		791,122		1,011,426
Units purchased		–		–		–		5		58,270		28,146		48,968		70,507
Units redeemed		(5,192	)	(8,238	)	(11,397	)	(14,754	)	(75,614	)	(39,900	)	(210,075	)	(290,811	)
Ending units		28,857		34,049		47,089		58,486		140,799		158,143		630,015		791,122

(Continued)

15

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		ACVPInt4				CSGIobFixInc				CSMidCpGr				DelDelchester
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(24,847	)	(3,635	)	31,004		9,651		(38,659	)	(45,415	)	31,652		26,675
Realized gain (loss) on investments		178,952		67,813		(13,000	)	(31,766	)	78,624		(122,031	)	47		3,367
Change in unrealized gain (loss) on investments		263,659		250,816		23,418		59,417		253,625		184,760		(30,072	)	18,481
Reinvested capital gains		–		–		–		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		417,764		314,994		41,422		37,302		293,590		17,314		1,627		48,523
Equity transactions:
Purchase payments received from contract owners (note 3)		438,971		320,255		53,830		48,812		139,768		171,668		25,950		29,147
Transfers between funds		1,277,960		1,090,766		105,323		(101,714	)	(231,175	)	(321,519	)	(32,957	)	27,751
Redemptions (note 3)		(519,266	)	(143,642	)	(208,572	)	(264,738	)	(601,387	)	(526,224	)	(53,308	)	(62,733	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(1,656	)	(981	)	(873	)	(1,012	)	(3,444	)	(4,173	)	(574	)	(622	)
Contingent deferred sales charges (note 2)		(5,506	)	(318	)	(997	)	(323	)	(883	)	(1,022	)	–		(168	)
Adjustments to maintain reserves		(64	)	(62	)	(23	)	12		(5	)	(29	)	19		197
Net equity transactions		1,190,439		1,266,018		(51,312	)	(318,963	)	(697,126	)	(681,299	)	(60,870	)	(6,428	)
Net change in contract owners’ equity		1,608,203		1,581,012		(9,890	)	(281,661	)	(403,536	)	(663,985	)	(59,243	)	42,095
Contract owners’ equity beginning of period		2,215,512		634,500		730,372		1,012,033		3,131,298		3,795,283		454,075		411,980
Contract owners’ equity end of period	$	3,823,715		2,215,512		720,482		730,372		2,727,762		3,131,298		394,832		454,075
CHANGES IN UNITS:
Beginning units		142,961		50,510		49,753		71,866		200,167		243,568		26,667		27,252
Units purchased		122,456		120,692		18,103		15,896		12,528		14,602		6,937		7,173
Units redeemed		(53,451	)	(28,241	)	(21,839	)	(38,009	)	(54,357	)	(58,003	)	(10,572	)	(7,758	)
Ending units		211,966		142,961		46,017		49,753		158,338		200,167		23,032		26,667

(Continued)

16

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		DryABonds				DryApp				DryELead				DryBalOpp
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	74,792		80,814		3,273		8,819		(228	)	(498	)	15,455		7,743
Realized gain (loss) on investments		(5,216	)	(9,017	)	348,927		215,884		(1,129	)	9,535		16,543		307
Change in unrealized gain (loss) on investments		(25,322	)	(11,288	)	(238,338	)	252,464		(2,003	)	(12,698	)	(235,757	)	137,281
Reinvested capital gains		–		–		122,655		195,512		2,015		4,982		268,917		360
Net increase (decrease) in contract owners’ equity resulting from operations		44,254		60,509		236,517		672,679		(1,345	)	1,321		65,158		145,691
Equity transactions:
Purchase payments received from contract owners (note 3)		113,200		156,740		285,119		371,651		–		–		98,684		117,497
Transfers between funds		45,305		(152,661	)	(366,333	)	(790,582	)	–		(26,293	)	27,168		(46,987	)
Redemptions (note 3)		(486,646	)	(511,358	)	(781,168	)	(582,207	)	(9,933	)	(37,682	)	(249,073	)	(278,363	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(2,534	)	(2,913	)	(3,414	)	(3,703	)	–		–		(1,266	)	(1,418	)
Contingent deferred sales charges (note 2)		(398	)	(1,408	)	(3,517	)	(2,631	)	–		–		(1,365	)	(1,243	)
Adjustments to maintain reserves		24		14		(54	)	(101	)	(15	)	4		203		1,494
Net equity transactions		(331,049	)	(511,586	)	(869,367	)	(1,007,573	)	(9,948	)	(63,971	)	(125,649	)	(209,020	)
Net change in contract owners’ equity		(286,795	)	(451,077	)	(632,850	)	(334,894	)	(11,293	)	(62,650	)	(60,491	)	(63,329	)
Contract owners’ equity beginning of period		2,279,940		2,731,017		5,045,604		5,380,498		22,618		85,268		1,883,248		1,946,577
Contract owners’ equity end of period	$	1,993,145		2,279,940		4,412,754		5,045,604		11,325		22,618		1,822,757		1,883,248
CHANGES IN UNITS:
Beginning units		145,007		178,348		405,513		501,974		1,754		7,031		176,376		197,213
Units purchased		20,380		12,388		39,556		48,656		–		344		17,509		15,973
Units redeemed		(41,217	)	(45,729	)	(106,342	)	(145,117	)	(748	)	(5,621	)	(29,405	)	(36,810	)
Ending units		124,170		145,007		338,727		405,513		1,006		1,754		164,480		176,376

(Continued)

17

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		DrySP500Ix				EvEqInc				FedEqIncome				FedHiYld
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	24,635		13,705		2,107		10,294		1,857		1,823		135,685		147,554
Realized gain (loss) on investments		200,490		(340,095	)	20,254		69,402		16,443		13,101		(3,794	)	(39,561	)
Change in unrealized gain (loss) on investments		465,771		2,024,649		(81,271	)	(35,633	)	(19,771	)	10,904		(80,035	)	112,493
Reinvested capital gains		1,765		587,351		76,290		104,047		4,100		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		692,661		2,285,610		17,380		148,110		2,629		25,828		51,856		220,486
Equity transactions:
Purchase payments received from contract owners (note 3)		1,222,358		1,470,759		72,634		62,674		503		484		184,639		251,709
Transfers between funds		(829,744	)	(120,802	)	62,587		32,382		(44,743	)	68,657		(505,327	)	541,093
Redemptions (note 3)		(3,402,528	)	(3,202,823	)	(194,198	)	(333,110	)	(5,500	)	(3,741	)	(443,074	)	(538,051	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(23,993	)	(27,472	)	(1,312	)	(1,582	)	–		–		(1,606	)	(1,537	)
Contingent deferred sales charges (note 2)		(4,500	)	(7,060	)	(507	)	(1,181	)	(32	)	(97	)	(863	)	(3,669	)
Adjustments to maintain reserves		(65	)	40		3		(44	)	(6	)	(28	)	(39	)	103
Net equity transactions		(3,038,472	)	(1,887,358	)	(60,793	)	(240,861	)	(49,778	)	65,275		(766,270	)	249,648
Net change in contract owners’ equity		(2,345,811	)	398,252		(43,413	)	(92,751	)	(47,149	)	91,103		(714,414	)	470,134
Contract owners’ equity beginning of period		18,393,389		17,995,137		992,926		1,085,677		183,970		92,867		2,507,604		2,037,470
Contract owners’ equity end of period	$	16,047,578		18,393,389		949,513		992,926		136,821		183,970		1,793,190		2,507,604
CHANGES IN UNITS:
Beginning units		560,996		624,278		35,468		44,806		17,923		11,009		194,727		173,763
Units purchased		64,979		89,671		8,324		6,631		48		11,186		74,546		107,710
Units redeemed		(153,778	)	(152,953	)	(10,425	)	(15,969	)	(4,750	)	(4,272	)	(132,927	)	(86,746	)
Ending units		472,197		560,996		33,367		35,468		13,221		17,923		136,346		194,727

(Continued)

18

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		FedIntCorpBd				FedBdFd				FidABalA				FidABalT
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	28,870		25,341		88,677		96,718		3,375		4,295		3,248		5,057
Realized gain (loss) on investments		(6,694	)	(4,970	)	(15,851	)	13,628		24,261		10,021		18,742		15,449
Change in unrealized gain (loss) on investments		11,593		1,492		4,974		(12,585	)	(26,386	)	12,639		(40,614	)	27,737
Reinvested capital gains		–		–		–		–		40,136		30,912		103,047		68,460
Net increase (decrease) in contract owners’ equity resulting from operations		33,769		21,863		77,800		97,761		41,386		57,867		84,423		116,703
Equity transactions:
Purchase payments received from contract owners (note 3)		135,209		53,260		161,927		227,381		11,328		11,777		128,248		136,745
Transfers between funds		72,362		(106,469	)	277,204		(41,918	)	39,781		(37,516	)	27,027		26,467
Redemptions (note 3)		(168,530)		(91,532	)	(464,174	)	(501,299	)	(133,210	)	(119,967	)	(107,138	)	(158,160	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		–		–		(1,944	)	(2,257	)	–		–		(1,646	)	(1,790	)
Contingent deferred sales charges (note 2)		(714	)	(1,480	)	(531	)	(626	)	(1,427	)	(1,389	)	(382	)	(1,092	)
Adjustments to maintain reserves		2		–		(81	)	9		(37	)	(45	)	(11	)	(4	)
Net equity transactions		38,329		(146,221	)	(27,599	)	(318,710	)	(83,565	)	(147,140	)	46,098		2,166
Net change in contract owners’ equity		72,098		(124,358	)	50,201		(220,949	)	(42,179	)	(89,273	)	130,521		118,869
Contract owners’ equity beginning of period		725,837		850,195		2,175,503		2,396,452		565,605		654,878		1,264,717		1,145,848
Contract owners’ equity end of period	$	797,935		725,837		2,225,704		2,175,503		523,426		565,605		1,395,238		1,264,717
CHANGES IN UNITS:
Beginning units		54,941		66,370		139,144		159,931		48,763		62,215		73,978		73,624
Units purchased		24,064		7,388		41,255		27,934		4,525		1,187		12,432		15,684
Units redeemed		(21,079	)	(18,817	)	(42,088	)	(48,721	)	(11,187	)	(14,639	)	(9,999	)	(15,330	)
Ending units		57,926		54,941		138,311		139,144		42,101		48,763		76,411		73,978

(Continued)

19

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		FidAEGroA				FidAEqIncA				FidAEqIncT				FidAGrOppA
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(13,241	)	(9,712	)	(3,373	)	(22	)	(21,313	)	(11,664	)	(7,277	)	(7,422	)
Realized gain (loss) on investments		70,859		38,008		210,627		231,731		372,231		151,818		32,679		44,529
Change in unrealized gain (loss) on investments		194,202		11,956		(508,785	)	213,060		(637,618	)	315,136		90,174		(27,067	)
Reinvested capital gains		–		–		414,769		162,706		399,243		166,017		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		251,820		40,252		113,238		607,475		112,543		621,307		115,576		10,040
Equity transactions:
Purchase payments received from contract owners (note 3)		155,830		184,113		483,048		500,001		300,602		425,766		73,099		60,752
Transfers between funds		188,776		(100,157	)	(160,420	)	(394,818	)	(64,265	)	36,664		56,272		(300,782	)
Redemptions (note 3)		(88,004	)	(145,708	)	(595,248	)	(466,214	)	(1,071,773	)	(791,227	)	(136,697	)	(151,845	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		–		–		–		–		(5,467	)	(5,425	)	–		–
Contingent deferred sales charges (note 2)		(1,495	)	(3,471	)	(6,113	)	(7,469	)	(4,879	)	(2,623	)	(2,189	)	(486	)
Adjustments to maintain reserves		(28	)	(59	)	(80	)	(145	)	25		(26	)	(36	)	(25	)
Net equity transactions		255,079		(65,282	)	(278,813	)	(368,645	)	(845,757	)	(336,871	)	(9,551	)	(392,386	)
Net change in contract owners’ equity		506,899		(25,030	)	(165,575	)	238,830		(733,214	)	284,436		106,025		(382,346	)
Contract owners’ equity beginning of period		894,569		919,599		4,428,184		4,189,354		4,558,425		4,273,989		576,813		959,159
Contract owners’ equity end of period	$	1,401,468		894,569		4,262,609		4,428,184		3,825,211		4,558,425		682,838		576,813
CHANGES IN UNITS:
Beginning units		125,406		135,715		286,632		313,369		185,763		200,850		70,456		121,384
Units purchased		69,274		30,674		47,771		53,223		17,476		33,105		24,615		83,120
Units redeemed		(36,836	)	(40,983	)	(64,449	)	(79,960	)	(50,415	)	(48,192	)	(26,422	)	(134,048	)
Ending units		157,844		125,406		269,954		286,632		152,824		185,763		68,649		70,456

(Continued)

20

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		FidAGrOppT				FidAHiIncT				FidAOvA				FidAsMgr
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(48,340	)	(47,293	)	94,934		126,176		17		(1,042	)	42,045		44,341
Realized gain (loss) on investments		143,014		(235,342	)	93,843		32,868		115		44,169		55,136		33,443
Change in unrealized gain (loss) on investments		593,713		390,832		(150,012	)	151,691		1,189		(27,137	)	(121,428	)	(10,071	)
Reinvested capital gains		–		–		–		–		1,410		859		149,123		133,887
Net increase (decrease) in contract owners’ equity resulting from operations		688,387		108,197		38,765		310,735		2,731		16,849		124,876		201,600
Equity transactions:
Purchase payments received from contract owners (note 3)		192,508		250,429		–		–		–		–		122,311		176,128
Transfers between funds		316,293		(223,642	)	(295,400	)	(132,184	)	–		(131,805	)	(44,282	)	(111,545	)
Redemptions (note 3)		(667,354	)	(849,782	)	(541,983	)	(499,821	)	(108	)	(68,381	)	(481,402	)	(926,385	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(5,426	)	(6,418	)	(1,697	)	(2,045	)	–		–		(3,680	)	(4,166	)
Contingent deferred sales charges (note 2)		(1,177	)	(2,063	)	(2,455	)	(647	)	(5	)	(1,672	)	(597	)	(911	)
Adjustments to maintain reserves		(25	)	(38	)	(24	)	234		1		(8	)	(42	)	24
Net equity transactions		(165,181	)	(831,514	)	(841,559	)	(634,463	)	(112	)	(201,866	)	(407,692	)	(866,855	)
Net change in contract owners’ equity		523,206		(723,317	)	(802,794	)	(323,728	)	2,619		(185,017	)	(282,816	)	(665,255	)
Contract owners’ equity beginning of period		3,475,475		4,198,792		2,245,182		2,568,910		17,610		202,627		2,554,173		3,219,428
Contract owners’ equity end of period	$	3,998,681		3,475,475		1,442,388		2,245,182		20,229		17,610		2,271,357		2,554,173
CHANGES IN UNITS:
Beginning units		235,646		294,745		118,500		153,451		1,467		19,671		114,369		155,360
Units purchased		52,311		36,102		13,418		8,611		–		–		6,960		10,904
Units redeemed		(64,364	)	(95,201	)	(55,875	)	(43,562	)	(8	)	(18,204	)	(24,411	)	(51,895	)
Ending units		223,593		235,646		76,043		118,500		1,459		1,467		96,918		114,369

(Continued)

21

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		FidCapInc				FidEqInc				FidMgln				FidPurtn
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	19,595		22,885		36,179		37,211		(132,967	)	(139,385	)	132,259		160,697
Realized gain (loss) on investments		(5,839	)	(8,611	)	516,280		126,772		(1,584,652	)	(1,475,735	)	166,945		43,164
Change in unrealized gain (loss) on investments		(3,031	)	36,685		(998,260	)	979,861		2,366,014		(1,456,646	)	(540,884	)	582,298
Reinvested capital gains		–		–		545,321		643,235		1,772,537		3,996,272		684,869		399,630
Net increase (decrease) in contract owners’ equity resulting from operations		10,725		50,959		99,520		1,787,079		2,420,932		924,506		443,189		1,185,789
Equity transactions:
Purchase payments received from contract owners (note 3)		–		–		508,703		609,006		584,194		606,671		370,126		397,080
Transfers between funds		–		–		(238,078	)	25,430		(576,457	)	(877,559	)	(13,981	)	82,662
Redemptions (note 3)		(75,628	)	(69,087	)	(2,221,831	)	(1,761,538	)	(3,339,207	)	(3,402,694	)	(1,966,912	)	(1,899,373	)
Annuity benefits		–		–		(399	)	(354	)	–		–		–		–
Annual contract maintenance charges (note 2)		(668	)	(772	)	(12,630	)	(12,910	)	(20,417	)	(23,409	)	(9,565	)	(10,437	)
Contingent deferred sales charges (note 2)		(48	)	(18	)	(2,385	)	(1,663	)	(4,015	)	(4,970	)	(2,979	)	(5,645	)
Adjustments to maintain reserves		(115	)	95		182		(223	)	(92	)	(630	)	(1,006	)	44
Net equity transactions		(76,459	)	(69,782	)	(1,966,438	)	(1,142,252	)	(3,355,994	)	(3,702,591	)	(1,624,317	)	(1,435,669	)
Net change in contract owners’ equity		(65,734	)	(18,823	)	(1,866,918	)	644,827		(935,062	)	(2,778,085	)	(1,181,128	)	(249,880	)
Contract owners’ equity beginning of period		459,068		477,891		11,179,974		10,535,147		15,685,270		18,463,355		9,525,181		9,775,061
Contract owners’ equity end of period	$	393,334		459,068		9,313,056		11,179,974		14,750,208		15,685,270		8,344,053		9,525,181
CHANGES IN UNITS:
Beginning units		5,826		6,767		93,962		104,705		510,739		636,228		286,741		333,373
Units purchased		–		–		7,974		12,791		27,870		32,752		18,275		23,903
Units redeemed		(954	)	(941	)	(23,723	)	(23,534	)	(129,061	)	(158,241	)	(65,305	)	(70,535	)
Ending units		4,872		5,826		78,213		93,962		409,548		510,739		239,711		286,741

(Continued)

22

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		FidVIPHI				FidVIPOvS2R				FranMutSer				FranSmMCpGr
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	1,641		1,432		57,079		(14,425	)	122,685		47,110		(26,482	)	(27,665	)
Realized gain (loss) on investments		(36	)	(68	)	183,733		69,923		542,593		571,601		227,519		193,470
Change in unrealized gain (loss) on investments		(1,271	)	685		(13,684	)	248,150		(833,929	)	169,748		(280,852	)	(183,901	)
Reinvested capital gains		–		–		197,910		8,192		327,418		585,067		315,196		167,436
Net increase (decrease) in contract owners’ equity resulting from operations		334		2,049		425,038		311,840		158,767		1,373,526		235,381		149,340
Equity transactions:
Purchase payments received from contract owners (note 3)		–		–		338,723		458,852		1,198,333		984,408		109,319		241,659
Transfers between funds		–		–		664,029		1,374,378		609,899		539,551		(376,390	)	(296,576	)
Redemptions (note 3)		–		–		(660,891	)	(202,673	)	(1,762,785	)	(1,622,527	)	(387,976	)	(190,074	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(16	)	(17	)	(1,560	)	(805	)	(5,874	)	(5,278	)	–		–
Contingent deferred sales charges (note 2)		–		–		(6,536	)	(558	)	(12,505	)	(7,797	)	(2,973	)	(1,332	)
Adjustments to maintain reserves		(14	)	(11	)	(47	)	(13	)	3		(207	)	(47	)	(90	)
Net equity transactions		(30	)	(28	)	333,718		1,629,181		27,071		(111,850	)	(658,067	)	(246,413	)
Net change in contract owners’ equity		304		2,021		758,756		1,941,021		185,838		1,261,676		(422,686	)	(97,073	)
Contract owners’ equity beginning of period		22,924		20,903		2,832,836		891,815		9,777,596		8,515,920		2,392,681		2,489,754
Contract owners’ equity end of period	$	23,228		22,924		3,591,592		2,832,836		9,963,434		9,777,596		1,969,995		2,392,681
CHANGES IN UNITS:
Beginning units		873		874		188,000		68,873		511,413		517,613		289,296		319,814
Units purchased		–		–		96,602		150,632		138,919		124,644		35,759		76,226
Units redeemed		(1	)	(1	)	(78,506	)	(31,505	)	(134,894	)	(130,844	)	(108,736	)	(106,744	)
Ending units		872		873		206,096		188,000		515,438		511,413		216,319		289,296

(Continued)

23

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		FrVIPForSec3				FranBSInv				JAdvBal				JAdvIntlGr
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	39,037		1,577		(12,293	)	8,414		15,350		3,959		908		(225	)
Realized gain (loss) on investments		348,877		151,282		193,879		330,692		71,941		75,367		1,991		991
Change in unrealized gain (loss) on investments		13,966		506,979		(825,034	)	(61,434	)	(71,849	)	(53,954	)	10,190		19,861
Reinvested capital gains		213,735		–		401,998		269,546		84,892		87,095		2,915		–
Net increase (decrease) in contract owners’ equity resulting from operations		615,615		659,838		(241,450	)	547,218		100,334		112,467		16,004		20,627
Equity transactions:
Purchase payments received from contract owners (note 3)		791,643		653,384		644,183		874,483		42,445		61,024		–		–
Transfers between funds		45,605		706,842		64,263		135,575		(91,626	)	(122,612	)	–		(316	)
Redemptions (note 3)		(1,096,541	)	(720,554	)	(595,466	)	(443,833	)	(180,457	)	(202,251	)	(2,848	)	(1,402	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(2,713	)	(2,108	)	–		–		–		–		–		–
Contingent deferred sales charges (note 2)		(5,001	)	(865	)	(5,459	)	(2,927	)	(1,971	)	(722	)	(63	)	–
Adjustments to maintain reserves		(25	)	(11	)	(8	)	(177	)	(77	)	(30	)	(39	)	(7	)
Net equity transactions		(267,032	)	636,688		107,513		563,121		(231,686	)	(264,591	)	(2,950	)	(1,725	)
Net change in contract owners’ equity		348,583		1,296,526		(133,937	)	1,110,339		(131,352	)	(152,124	)	13,054		18,902
Contract owners’ equity beginning of period		4,224,492		2,927,966		4,641,285		3,530,946		1,265,873		1,417,997		67,660		48,758
Contract owners’ equity end of period	$	4,573,075		4,224,492		4,507,348		4,641,285		1,134,521		1,265,873		80,714		67,660
CHANGES IN UNITS:
Beginning units		280,958		233,560		200,922		175,926		106,188		129,865		4,626		4,763
Units purchased		84,765		119,830		60,165		92,034		11,210		13,346		–		–
Units redeemed		(98,880	)	(72,432	)	(57,011	)	(67,038	)	(29,699	)	(37,023	)	(195	)	(137	)
Ending units		266,843		280,958		204,076		200,922		87,699		106,188		4,431		4,626

(Continued)

24

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		JAdWrld				JanFund				Jan20Fd				JanWrldwde
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(5,430	)	3,497		(61,312	)	(71,667	)	(253,899	)	(158,074	)	(47,341	)	(2,578	)
Realized gain (loss) on investments		28,005		27,911		(202,434	)	(729,950	)	(1,638,113	)	(2,445,846	)	(124,314	)	(979,822	)
Change in unrealized gain (loss) on investments		18,821		44,943		1,243,697		1,477,180		8,848,036		4,922,161		626,132		1,860,969
Reinvested capital gains		–		–		–		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		41,396		76,351		979,951		675,563		6,956,024		2,318,241		454,477		878,569
Equity transactions:
Purchase payments received from contract owners (note 3)		–		–		406,451		474,302		963,584		1,194,343		–		4,352
Transfers between funds		(41,246	)	(89,940	)	(143,264	)	(404,696	)	509,256		(1,061,458	)	(166,001	)	(559,426	)
Redemptions (note 3)		(43,152	)	(61,599	)	(1,328,738	)	(1,024,574	)	(4,659,705	)	(3,253,499	)	(880,303	)	(907,279	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		–		–		(10,994	)	(12,299	)	(31,689	)	(35,369	)	(8,465	)	(9,460	)
Contingent deferred sales charges (note 2)		(110	)	(591	)	(2,224	)	(3,592	)	(6,597	)	(10,723	)	(1,057	)	(2,516	)
Adjustments to maintain reserves		(40	)	(23	)	(51	)	(83	)	(112	)	(48	)	(30	)	7
Net equity transactions		(84,548	)	(152,153	)	(1,078,820	)	(970,942	)	(3,225,263	)	(3,166,754	)	(1,055,856	)	(1,474,322	)
Net change in contract owners’ equity		(43,152	)	(75,802	)	(98,869	)	(295,379	)	3,730,761		(848,513	)	(601,379	)	(595,753	)
Contract owners’ equity beginning of period		536,746		612,548		7,573,724		7,869,103		22,841,154		23,689,667		5,786,091		6,381,844
Contract owners’ equity end of period	$	493,594		536,746		7,474,855		7,573,724		26,571,915		22,841,154		5,184,712		5,786,091
CHANGES IN UNITS:
Beginning units		70,080		92,412		516,839		587,461		878,681		1,016,777		340,387		435,577
Units purchased		–		–		39,841		33,916		113,796		70,513		–		219
Units redeemed		(10,174	)	(22,332	)	(114,035	)	(104,538	)	(229,275	)	(208,609	)	(56,239	)	(95,409	)
Ending units		59,906		70,080		442,645		516,839		763,202		878,681		284,148		340,387

(Continued)

25

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		LazSmCap				LBShrtDBd				MFSStratInc				NWBondD
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(34,212	)	(38,192	)	41,566		32,940		39,583		45,158		57,641		67,516
Realized gain (loss) on investments		(233,669	)	(172,840	)	(24,799	)	(15,207	)	(1,902	)	5,634		(4,662	)	435
Change in unrealized gain (loss) on investments		(259,802	)	28,664		25,834		10,386		(18,310	)	1,175		19,296		(15,437	)
Reinvested capital gains		349,107		588,325		–		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		(178,576	)	405,957		42,601		28,119		19,371		51,967		72,275		52,514
Equity transactions:
Purchase payments received from contract owners (note 3)		260,054		296,401		85,857		43,042		43,705		123,764		105,758		149,087
Transfers between funds		(241,440	)	(82,811	)	47,599		56,648		49,300		(103,289	)	(84,234	)	(141,374	)
Redemptions (note 3)		(454,546	)	(673,781	)	(96,864	)	(175,033	)	(146,541	)	(181,075	)	(416,002	)	(320,856	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(2,967	)	(3,064	)	(1,096	)	(1,187	)	(893	)	(1,139	)	(2,187	)	(2,620	)
Contingent deferred sales charges (note 2)		(1,338	)	(2,198	)	(98	)	(377	)	(396	)	(607	)	(1,243	)	(2,235	)
Adjustments to maintain reserves		(78	)	(9	)	(242	)	160		(8	)	(39	)	2		(107	)
Net equity transactions		(440,315	)	(465,462	)	35,156		(76,747	)	(54,833	)	(162,385	)	(397,906	)	(318,105	)
Net change in contract owners’ equity		(618,891	)	(59,505	)	77,757		(48,628	)	(35,462	)	(110,418	)	(325,631	)	(265,591	)
Contract owners’ equity beginning of period		2,859,414		2,918,919		981,208		1,029,836		912,120		1,022,538		1,773,410		2,039,001
Contract owners’ equity end of period	$	2,240,523		2,859,414		1,058,965		981,208		876,658		912,120		1,447,779		1,773,410
CHANGES IN UNITS:
Beginning units		139,652		164,638		66,778		72,068		66,662		78,799		47,041		58,803
Units purchased		18,026		44,092		34,939		11,207		9,176		13,868		5,560		4,620
Units redeemed		(38,867	)	(69,078	)	(32,403	)	(16,497	)	(13,163	)	(26,005	)	(18,586	)	(16,382	)
Ending units		118,811		139,652		69,314		66,778		62,675		66,662		34,015		47,041

(Continued)

26

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NWBondInx				NWFund				NWGovBd				NWGrowthA
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	10,104		8,064		(11,446	)	(11,939	)	120,394		133,273		(4,896	)	(7,093	)
Realized gain (loss) on investments		(2,630	)	(3,051	)	(31,321	)	(192,982	)	(43,875	)	(95,149	)	29,119		54,104
Change in unrealized gain (loss) on investments		7,057		1,629		(396,555	)	270,503		151,176		68,739		49,007		(29,867	)
Reinvested capital gains		–		–		752,399		546,752		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		14,531		6,642		313,077		612,334		227,695		106,863		73,230		17,144
Equity transactions:
Purchase payments received from contract owners (note 3)		62,022		80,725		321,717		305,112		189,252		262,686		69,756		78,957
Transfers between funds		11,220		(30,479	)	(87,497	)	(240,315	)	(95,098	)	(234,465	)	30,520		(184,494	)
Redemptions (note 3)		(57,125	)	(30,689	)	(1,037,580	)	(1,053,046	)	(785,581	)	(772,822	)	(67,119	)	(154,112	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		–		–		(7,184	)	(8,742	)	(3,276	)	(3,998	)	(584	)	(574	)
Contingent deferred sales charges (note 2)		(728	)	(351	)	(2,281	)	(1,353	)	(4,942	)	(2,258	)	(518	)	(1,748	)
Adjustments to maintain reserves		(62	)	(15	)	10		(138	)	368		129		59		253
Net equity transactions		15,327		19,191		(812,815	)	(998,482	)	(699,277	)	(750,728	)	32,114		(261,718	)
Net change in contract owners’ equity		29,858		25,833		(499,738	)	(386,148	)	(471,582	)	(643,865	)	105,344		(244,574	)
Contract owners’ equity beginning of period		294,326		268,493		5,148,271		5,534,419		4,181,154		4,825,019		426,705		671,279
Contract owners’ equity end of period	$	324,184		294,326		4,648,533		5,148,271		3,709,572		4,181,154		532,049		426,705
CHANGES IN UNITS:
Beginning units		22,784		21,251		63,919		81,825		281,627		332,211		35,920		59,143
Units purchased		10,123		6,819		11,004		28,403		37,971		51,773		18,926		23,209
Units redeemed		(8,965	)	(5,286	)	(13,231	)	(46,309	)	(84,642	)	(102,357	)	(16,821	)	(46,432	)
Ending units		23,942		22,784		61,692		63,919		234,956		281,627		38,025		35,920

(Continued)

27

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NWGrowthD				NWIntIndx				NWIDAggr				NWIDCon
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(7,838	)	(12,807	)	288		238		35,160		(226	)	59,814		34,142
Realized gain (loss) on investments		72,425		63,619		487		171		42,880		47,101		20,822		6,052
Change in unrealized gain (loss) on investments		57,542		(7,655	)	542		3,603		(65,173	)	143,241		(22,522	)	19,677
Reinvested capital gains		–		–		667		624		70,374		37,558		28,646		29,522
Net increase (decrease) in contract owners’ equity resulting from operations		122,129		43,157		1,984		4,636		83,241		227,674		86,760		89,393
Equity transactions:
Purchase payments received from contract owners (note 3)		3,246		3,548		–		–		389,056		396,418		184,908		292,728
Transfers between funds		(13,103	)	(97,099	)	–		(256	)	(40,067	)	50,091		388,332		175,118
Redemptions (note 3)		(266,034	)	(256,176	)	(1,180	)	(106	)	(123,482	)	(176,402	)	(439,602	)	(152,607	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(1,390	)	(1,736	)	–		–		–		–		–		–
Contingent deferred sales charges (note 2)		(1,842	)	(227	)	(1	)	(2	)	(1,400	)	(2,241	)	(3,221	)	(1,056	)
Adjustments to maintain reserves		(75	)	89		(25	)	(9	)	(68	)	(39	)	(28	)	(42	)
Net equity transactions		(279,198)		(351,601	)	(1,206	)	(373	)	224,039		267,827		130,389		314,141
Net change in contract owners’ equity		(157,069	)	(308,444	)	778		4,263		307,280		495,501		217,149		403,534
Contract owners’ equity beginning of period		870,952		1,179,396		23,622		19,359		1,800,016		1,304,515		2,043,840		1,640,306
Contract owners’ equity end of period	$	713,883		870,952		24,400		23,622		2,107,296		1,800,016		2,260,989		2,043,840
CHANGES IN UNITS:
Beginning units		22,617		39,806		1,781		1,811		149,364		124,879		171,840		144,727
Units purchased		44		55		–		–		32,371		43,758		56,959		44,662
Units redeemed		(4,049	)	(17,244	)	(91	)	(30	)	(14,672	)	(19,273	)	(47,269	)	(17,549	)
Ending units		18,612		22,617		1,690		1,781		167,063		149,364		181,530		171,840

(Continued)

28

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NWIDMod				NWIDModAgg				NWIDModCon				NWLgCpVal
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	205,380		64,259		84,068		8,062		61,281		29,447		(9,613	)	(816	)
Realized gain (loss) on investments		463,012		86,590		87,003		38,568		47,399		15,127		75,361		99,840
Change in unrealized gain (loss) on investments		(433,831	)	487,801		(104,315	)	302,803		(55,863	)	52,818		(455,083	)	(49,640	)
Reinvested capital gains		195,425		179,425		117,069		76,718		59,496		59,666		298,055		397,348
Net increase (decrease) in contract owners’ equity resulting from operations		429,986		818,075		183,825		426,151		112,313		157,058		(91,280	)	446,732
Equity transactions:
Purchase payments received from contract owners (note 3)		552,669		1,359,945		1,170,272		722,456		190,736		495,340		291,789		346,053
Transfers between funds		(134,900	)	71,023		70,744		15,895		(99,967	)	167,303		(214,336	)	716,498
Redemptions (note 3)		(2,329,100	)	(367,677	)	(518,716	)	(323,571	)	(241,485	)	(188,877	)	(504,913	)	(451,775	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		–		–		–		–		–		–		(2,203	)	(1,852	)
Contingent deferred sales charges (note 2)		(5,452	)	(3,781	)	(3,738	)	(5,981	)	(713	)	(1,269	)	(3,445	)	(1,388	)
Adjustments to maintain reserves		(78	)	(141	)	(91	)	(11	)	(30	)	(86	)	(35	)	(28	)
Net equity transactions		(1,916,861)		1,059,369		718,471		408,788		(151,459	)	472,411		(433,143	)	607,508
Net change in contract owners’ equity		(1,486,875	)	1,877,444		902,296		834,939		(39,146	)	629,469		(524,423	)	1,054,240
Contract owners’ equity beginning of period		9,384,597		7,507,153		3,833,765		2,998,826		2,535,819		1,906,350		3,086,672		2,032,432
Contract owners’ equity end of period	$	7,897,722		9,384,597		4,736,061		3,833,765		2,496,673		2,535,819		2,562,249		3,086,672
CHANGES IN UNITS:
Beginning units		778,859		685,861		317,275		280,453		209,987		169,351		189,451		149,960
Units purchased		65,767		139,758		103,288		69,826		28,673		61,452		48,343		97,864
Units redeemed		(214,980	)	(46,760	)	(47,054	)	(33,004	)	(40,979	)	(20,816	)	(74,691	)	(58,373	)
Ending units		629,646		778,859		373,509		317,275		197,681		209,987		163,103		189,451

(Continued)

29

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NWMdCpMkt				NWMyMktP				NWMyMktS				NWSP500Indx
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	25		962		367,474		319,225		251,615		180,551		6,697		4,455
Realized gain (loss) on investments		104,446		33,062		–		–		–		–		284,346		306,170
Change in unrealized gain (loss) on investments		(125,945	)	(17,687	)	–		–		–		–		(204,541	)	223,812
Reinvested capital gains		129,419		85,226		–		–		–		–		57,863		17,303
Net increase (decrease) in contract owners’ equity resulting from operations		107,945		101,563		367,474		319,225		251,615		180,551		144,365		551,740
Equity transactions:
Purchase payments received from contract owners (note 3)		164,758		326,421		1,592,583		2,006,408		1,538,431		1,393,475		271,472		422,445
Transfers between funds		(129,862	)	300,692		2,850,513		2,573,289		653,718		3,133,469		177,870		(392,026	)
Redemptions (note 3)		(240,975	)	(51,070	)	(4,539,361	)	(3,312,847	)	(1,310,963	)	(2,439,129	)	(983,947	)	(347,821	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		–		–		(15,262	)	(17,230	)	–		–		(2,046	)	(1,897	)
Contingent deferred sales charges (note 2)		(968	)	(1,461	)	(8,493	)	(7,557	)	(4,812	)	(20,940	)	(3,967	)	(1,681	)
Adjustments to maintain reserves		31		(160	)	178		9		59		(204	)	(100	)	(122	)
Net equity transactions		(207,016	)	574,422		(119,842	)	1,242,072		876,433		2,066,671		(540,718	)	(321,102	)
Net change in contract owners’ equity		(99,071	)	675,985		247,632		1,561,297		1,128,048		2,247,222		(396,353	)	230,638
Contract owners’ equity beginning of period		1,653,775		977,790		10,726,969		9,165,672		6,997,751		4,750,529		4,275,167		4,044,529
Contract owners’ equity end of period	$	1,554,704		1,653,775		10,974,601		10,726,969		8,125,799		6,997,751		3,878,814		4,275,167
CHANGES IN UNITS:
Beginning units		114,194		73,263		446,136		393,056		640,190		449,909		429,809		460,212
Units purchased		21,419		49,367		389,152		370,389		417,775		749,734		78,706		119,229
Units redeemed		(34,266	)	(8,436	)	(394,047	)	(317,309	)	(340,993	)	(559,453	)	(136,990	)	(149,632	)
Ending units		101,347		114,194		441,241		446,136		716,972		640,190		371,525		429,809

(Continued)

30

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NWSmCap				NWSmCapIx				NWValOpp				NVITIDAgg2
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(37,620	)	(55,736	)	471		1,880		(3,083	)	(4,618	)	7,362		6,703
Realized gain (loss) on investments		522,485		476,913		85,807		23,719		(7,329	)	(3,726	)	33,293		10,019
Change in unrealized gain (loss) on investments		(1,574,727	)	585,239		(160,068	)	24,807		(49,786	)	12,010		(37,346	)	56,213
Reinvested capital gains		814,715		229,009		58,677		109,884		39,736		38,523		32,690		5,951
Net increase (decrease) in contract owners’ equity resulting from operations		(275,147	)	1,235,425		(15,113	)	160,290		(20,462	)	42,189		35,999		78,886
Equity transactions:
Purchase payments received from contract owners (note 3)		277,483		387,548		207,568		319,151		6,588		66,813		275,197		130,431
Transfers between funds		(953,541	)	87,247		(407,317	)	249,881		(33,880	)	(94,636	)	135,481		547,786
Redemptions (note 3)		(896,990	)	(694,146	)	(229,962	)	(55,818	)	(24,526	)	(42,054	)	(148,912	)	(57,163	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(3,854	)	(3,906	)	–		–		–		–		(2,363	)	(1,044	)
Contingent deferred sales charges (note 2)		(1,825	)	(2,963	)	(1,193	)	(432	)	(381	)	–		(682	)	(140	)
Adjustments to maintain reserves		(155	)	(66	)	(69	)	(82	)	(73	)	(26	)	14		(14	)
Net equity transactions		(1,578,882	)	(226,286	)	(430,973	)	512,700		(52,272	)	(69,903	)	258,735		619,856
Net change in contract owners’ equity		(1,854,029	)	1,009,139		(446,086	)	672,990		(72,734	)	(27,714	)	294,734		698,742
Contract owners’ equity beginning of period		5,654,710		4,645,571		1,458,075		785,085		293,641		321,355		980,064		281,322
Contract owners’ equity end of period	$	3,800,681		5,654,710		1,011,989		1,458,075		220,907		293,641		1,274,798		980,064
CHANGES IN UNITS:
Beginning units		216,630		229,634		97,827		61,125		17,052		21,774		71,501		23,675
Units purchased		41,579		99,454		22,747		51,660		1,347		14,725		34,384		56,000
Units redeemed		(100,039	)	(112,458	)	(50,063	)	(14,958	)	(4,357	)	(19,447	)	(16,949	)	(8,174	)
Ending units		158,170		216,630		70,511		97,827		14,042		17,052		88,936		71,501

(Continued)

31

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NVITIDCon2				NVITIDMod2				NVITIDModAg2				NVITIDModCon2
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	2,032		747		19,744		11,808		19,799		18,504		3,593		1,819
Realized gain (loss) on investments		24		(35	)	28,821		54,352		140,479		28,186		3,261		(245	)
Change in unrealized gain (loss) on investments		(817	)	826		(20,146	)	34,326		(82,576	)	135,545		(3,575	)	2,851
Reinvested capital gains		1,695		353		21,504		10,021		35,843		19,437		4,775		1,516
Net increase (decrease) in contract owners’ equity resulting from operations		2,934		1,891		49,923		110,507		113,545		201,672		8,054		5,941
Equity transactions:
Purchase payments received from contract owners (note 3)		38,695		16,374		279,645		155,604		453,270		263,571		75,598		76,483
Transfers between funds		23,449		212		262,918		331,863		200,669		1,026,335		40,337		11,692
Redemptions (note 3)		(1,719	)	(1,227	)	(213,632	)	(372,805	)	(896,921	)	(187,968	)	(54,422	)	(26,489	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(245	)	(171	)	(2,896	)	(1,883	)	(4,169	)	(2,363	)	(752	)	(446	)
Contingent deferred sales charges (note 2)		(2	)	–		(155	)	(3,282	)	(10,156	)	(87	)	(60	)	(82	)
Adjustments to maintain reserves		(13	)	11		(17	)	4		(9	)	(6	)	(31	)	9
Net equity transactions		60,165		15,199		325,863		109,501		(257,316	)	1,099,482		60,670		61,167
Net change in contract owners’ equity		63,099		17,090		375,786		220,008		(143,771	)	1,301,154		68,724		67,108
Contract owners’ equity beginning of period		48,698		31,608		1,126,874		906,866		2,270,454		969,300		153,505		86,397
Contract owners’ equity end of period	$	111,797		48,698		1,502,660		1,126,874		2,126,683		2,270,454		222,229		153,505
CHANGES IN UNITS:
Beginning units		4,408		2,998		91,583		81,006		172,773		83,390		13,164		7,929
Units purchased		5,550		1,620		47,315		44,041		55,512		114,419		10,771		9,740
Units redeemed		(228	)	(210	)	(21,785	)	(33,464	)	(73,810	)	(25,036	)	(5,694	)	(4,505	)
Ending units		9,730		4,408		117,113		91,583		154,475		172,773		18,241		13,164

(Continued)

32

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NVITJPBal				NBGen				NBGuard				NBGuardT
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	1,818		2,615		(180,917	)	(34,864	)	(19,606	)	(28,629	)	(1,010	)	(2,530	)
Realized gain (loss) on investments		15,409		7,484		1,225,353		1,483,177		208,202		91,078		9,112		36,218
Change in unrealized gain (loss) on investments		(13,072	)	14,876		(431,803	)	(1,687,537	)	(291,467	)	70,884		(26,296	)	(20,871	)
Reinvested capital gains		5,105		–		2,394,812		1,196,371		273,304		185,657		31,828		14,137
Net increase (decrease) in contract owners’ equity resulting from operations		9,260		24,975		3,007,445		957,147		170,433		318,990		13,634		26,954
Equity transactions:
Purchase payments received from contract owners (note 3)		36,615		37,331		977,147		1,735,546		112,560		104,915		5,900		1,792
Transfers between funds		18,360		(19,030	)	(1,031,752	)	(1,721,061	)	(14,244	)	(167,191	)	60,157		(77,973	)
Redemptions (note 3)		(101,523	)	(29,926	)	(2,846,700	)	(2,910,328	)	(669,365	)	(462,028	)	(10,185	)	(35,900	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(332	)	(295	)	(9,568	)	(11,141	)	(3,299	)	(3,560	)	–		–
Contingent deferred sales charges (note 2)		(471	)	(237	)	(14,366	)	(10,635	)	(464	)	(528	)	(121	)	(21	)
Adjustments to maintain reserves		24		(23	)	26		(214	)	(31	)	(4	)	(35	)	(30	)
Net equity transactions		(47,327	)	(12,180	)	(2,925,213	)	(2,917,833	)	(574,843	)	(528,396	)	55,716		(112,132	)
Net change in contract owners’ equity		(38,067	)	12,795		82,232		(1,960,686	)	(404,410	)	(209,406	)	69,350		(85,178	)
Contract owners’ equity beginning of period		243,931		231,136		16,358,793		18,319,479		2,861,814		3,071,220		218,524		303,702
Contract owners’ equity end of period	$	205,864		243,931		16,441,025		16,358,793		2,457,404		2,861,814		287,874		218,524
CHANGES IN UNITS:
Beginning units		20,618		21,649		681,574		807,488		123,393		148,320		17,972		27,967
Units purchased		4,758		4,871		80,391		158,791		7,706		9,292		5,527		190
Units redeemed		(8,534	)	(5,902	)	(192,525	)	(284,705	)	(31,334	)	(34,219	)	(1,266	)	(10,185	)
Ending units		16,842		20,618		569,440		681,574		99,765		123,393		22,233		17,972

(Continued)

33

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NBPart				NBPartT				NBSocRes				OppCapApA
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(62,157	)	(50,446	)	(5,000	)	(4,950	)	(10,771	)	(12,407	)	(25,187	)	(25,913	)
Realized gain (loss) on investments		640,546		409,687		56,972		54,318		72,090		27,281		81,384		170,103
Change in unrealized gain (loss) on investments		(238,764	)	269,828		(11,700	)	1,655		(16,349	)	115,656		154,103		20,157
Reinvested capital gains		209,326		109,536		15,448		10,142		57,072		15,026		47,024		–
Net increase (decrease) in contract owners’ equity resulting from operations		548,951		738,605		55,720		61,165		102,042		145,556		257,324		164,347
Equity transactions:
Purchase payments received from contract owners (note 3)		381,404		492,281		5,264		7,536		179,015		267,588		205,531		367,619
Transfers between funds		(13,048	)	(340,530	)	(43,573	)	7,967		182,783		793,543		(179,346	)	(953,665	)
Redemptions (note 3)		(1,638,870	)	(1,369,788	)	(200,475	)	(30,926	)	(235,333	)	(95,409	)	(150,758	)	(248,993	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(7,531	)	(8,445	)	–		–		(251	)	(184	)	–		–
Contingent deferred sales charges (note 2)		(1,971	)	(3,119	)	(99	)	(160	)	(1,666	)	(1,216	)	(2,226	)	(2,792	)
Adjustments to maintain reserves		(65	)	35		(21	)	202		(21	)	5		(57	)	(65	)
Net equity transactions		(1,280,081	)	(1,229,566	)	(238,904	)	(15,381	)	124,527		964,327		(126,856	)	(837,896	)
Net change in contract owners’ equity		(731,130	)	(490,961	)	(183,184	)	45,784		226,569		1,109,883		130,468		(673,549	)
Contract owners’ equity beginning of period		6,681,163		7,172,124		621,923		576,139		1,634,820		524,937		2,214,629		2,888,178
Contract owners’ equity end of period	$	5,950,033		6,681,163		438,739		621,923		1,861,389		1,634,820		2,345,097		2,214,629
CHANGES IN UNITS:
Beginning units		174,025		208,718		42,201		43,693		120,462		43,761		260,714		360,986
Units purchased		17,595		33,596		1,740		16,345		42,358		101,129		38,568		97,939
Units redeemed		(48,987	)	(68,289	)	(16,769	)	(17,837	)	(33,684	)	(24,428	)	(53,582	)	(198,211	)
Ending units		142,633		174,025		27,172		42,201		129,136		120,462		245,700		260,714

(Continued)

34

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		OppChpIncA				OppGlobA				OppStrIncA				OppGlSec4
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	14,962		12,228		(33,514	)	(81,560	)	39,440		22,259		(9,325	)	(29,828	)
Realized gain (loss) on investments		(565	)	(876	)	1,250,743		1,278,404		2,438		1,369		502,043		273,987
Change in unrealized gain (loss) on investments		(17,475	)	6,497		(1,244,434	)	68,617		12,169		14,501		(508,626	)	454,627
Reinvested capital gains		–		–		629,568		701,372		–		–		418,008		351,939
Net increase (decrease) in contract owners’ equity resulting from operations		(3,078	)	17,849		602,363		1,966,833		54,047		38,129		402,100		1,050,725
Equity transactions:
Purchase payments received from contract owners (note 3)		31,349		76,351		(29	)	382		138,996		123,186		1,065,285		1,631,019
Transfers between funds		31,281		(118,752	)	(822,843	)	(1,359,625	)	136,485		(89,950	)	344,150		988,017
Redemptions (note 3)		(48,786	)	(20,736	)	(2,297,138	)	(2,394,796	)	(94,307	)	(92,916	)	(1,714,333	)	(1,064,874	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		–		–		(10,344	)	(11,883	)	–		–		(5,232	)	(4,478	)
Contingent deferred sales charges (note 2)		(229	)	(343	)	(4,026	)	(5,573	)	(1,832	)	(687	)	(7,875	)	(4,851	)
Adjustments to maintain reserves		(27	)	36		(75	)	(183	)	138		(19	)	(22	)	(139	)
Net equity transactions		13,588		(63,444	)	(3,134,455	)	(3,771,678	)	179,480		(60,386	)	(318,027	)	1,544,694
Net change in contract owners’ equity		10,510		(45,595	)	(2,532,092	)	(1,804,845	)	233,527		(22,257	)	84,073		2,595,419
Contract owners’ equity beginning of period		238,841		284,436		12,944,367		14,749,212		595,446		617,703		8,277,875		5,682,456
Contract owners’ equity end of period	$	249,351		238,841		10,412,275		12,944,367		828,973		595,446		8,361,948		8,277,875
CHANGES IN UNITS:
Beginning units		17,997		23,082		393,370		526,968		39,653		43,760		548,551		436,757
Units purchased		5,005		7,292		–		126		20,402		11,842		131,594		246,257
Units redeemed		(3,947	)	(12,377	)	(89,202	)	(133,724	)	(8,867	)	(15,949	)	(151,336	)	(134,463	)
Ending units		19,055		17,997		304,168		393,370		51,188		39,653		528,809		548,551

(Continued)

35

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		PhxBalFd				PimTotRetA				PutIntlEq				PutVoyager
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	9,185		9,369		125,464		119,097		72		45		(669	)	(1,164	)
Realized gain (loss) on investments		24,145		18,994		(38,225	)	(38,377	)	31		19		3,642		16,959
Change in unrealized gain (loss) on investments		(54,297	)	(1,559	)	131,321		(10,130	)	(645	)	826		(944	)	(11,419	)
Reinvested capital gains		59,797		82,287		23,374		13,814		912		235		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		38,830		109,091		241,934		84,404		370		1,125		2,029		4,376
Equity transactions:
Purchase payments received from contract owners (note 3)		61,911		71,445		308,600		287,823		–		–		16,329		13,012
Transfers between funds		(19,411	)	(73,227	)	225,500		(185,455	)	–		–		11,673		(93,086	)
Redemptions (note 3)		(109,384	)	(295,755	)	(813,278	)	(659,407	)	–		–		(22,295	)	(25,544	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(1,271	)	(1,520	)	–		–		–		–		–		–
Contingent deferred sales charges (note 2)		(48	)	(1,431	)	(6,247	)	(3,752	)	–		–		(448	)	–
Adjustments to maintain reserves		12		(19	)	148		77		(3	)	(1	)	(31	)	(28	)
Net equity transactions		(68,191	)	(300,507	)	(285,277	)	(560,714	)	(3	)	(1	)	5,228		(105,646	)
Net change in contract owners’ equity		(29,361	)	(191,416	)	(43,343	)	(476,310	)	367		1,124		7,257		(101,270	)
Contract owners’ equity beginning of period		937,643		1,129,059		3,710,444		4,186,754		5,382		4,258		62,246		163,516
Contract owners’ equity end of period	$	908,282		937,643		3,667,101		3,710,444		5,749		5,382		69,503		62,246
CHANGES IN UNITS:
Beginning units		43,231		57,925		274,095		316,198		265		265		4,722		12,850
Units purchased		5,326		4,794		54,215		34,803		–		–		2,176		2,282
Units redeemed		(8,480	)	(19,488	)	(76,156	)	(76,906	)	–		–		(1,837	)	(10,410	)
Ending units		40,077		43,231		252,154		274,095		265		265		5,061		4,722

(Continued)

36

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		TemForeign				Dry3dCen				VKGroInc				VKMidCapGro
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	14,218		43,518		(8,028	)	(12,066	)	23,922		13,724		(13,490	)	(6,381	)
Realized gain (loss) on investments		358,617		422,665		8,619		(47,433	)	124,351		62,806		22,367		57,343
Change in unrealized gain (loss) on investments		(661,938	)	8,670		53,815		125,307		(262,524	)	144,504		22,190		(33,195	)
Reinvested capital gains		988,182		423,162		–		–		154,336		183,952		162,249		37,710
Net increase (decrease) in contract owners’ equity resulting from operations		699,079		898,015		54,406		65,808		40,085		404,986		193,316		55,477
Equity transactions:
Purchase payments received from contract owners (note 3)		–		166		41,920		42,688		349,805		589,069		120,264		214,074
Transfers between funds		(456,425	)	(422,824	)	(648	)	(118,238	)	106,143		323,745		910,055		108,899
Redemptions (note 3)		(768,435	)	(1,143,602	)	(117,757	)	(128,367	)	(410,481	)	(177,113	)	(305,951	)	(74,431	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(3,632	)	(4,458	)	(1,165	)	(1,415	)	–		–		–		–
Contingent deferred sales charges (note 2)		(1,783	)	(2,897	)	(117	)	(267	)	(1,136	)	(2,143	)	(2,300	)	(516	)
Adjustments to maintain reserves		(83	)	35		(27	)	(19	)	(168	)	(11	)	36		(88	)
Net equity transactions		(1,230,358	)	(1,573,580	)	(77,794	)	(205,618	)	44,163		733,547		722,104		247,938
Net change in contract owners’ equity		(531,279	)	(675,565	)	(23,388	)	(139,810	)	84,248		1,138,533		915,420		303,415
Contract owners’ equity beginning of period		4,999,740		5,675,305		906,072		1,045,882		3,348,357		2,209,824		767,703		464,288
Contract owners’ equity end of period	$	4,468,461		4,999,740		882,684		906,072		3,432,605		3,348,357		1,683,123		767,703
CHANGES IN UNITS:
Beginning units		222,002		291,056		58,550		75,308		191,891		145,322		41,717		27,114
Units purchased		–		244		2,782		3,069		47,241		72,978		51,459		41,527
Units redeemed		(50,010	)	(69,298	)	(6,820	)	(19,827	)	(45,044	)	(26,409	)	(17,838	)	(26,924	)
Ending units		171,992		222,002		54,512		58,550		194,088		191,891		75,338		41,717

(Continued)

37

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		VKRealEstSec				WRAdSmCap				WFComStk				WFGrInc
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	148		3,928		(3,556	)	(3,170	)	(29,273	)	(56,088	)	(1,345	)	(1,574	)
Realized gain (loss) on investments		331,014		167,338		8,979		8,952		249,109		187,359		14,861		45,519
Change in unrealized gain (loss) on investments		(1,165,651	)	393,203		(21,762	)	(33,746	)	(530,091	)	(441,643	)	(8,381	)	(17,540	)
Reinvested capital gains		430,224		200,071		34,680		40,101		677,138		856,909		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		(404,265	)	764,540		18,341		12,137		366,883		546,537		5,135		26,405
Equity transactions:
Purchase payments received from contract owners (note 3)		184,826		583,023		43,665		60,908		207,292		230,342		1,395		2,376
Transfers between funds		(1,362,318	)	698,561		91,435		(16,584	)	(25,457	)	(49,852	)	38,337		(2,443	)
Redemptions (note 3)		(222,909	)	(184,564	)	(153,348	)	(11,226	)	(741,134	)	(700,353	)	(51,019	)	(105,553	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		–		–		–		–		(3,022	)	(3,056	)	–		–
Contingent deferred sales charges (note 2)		(2,342	)	(1,520	)	(263	)	(417	)	(1,978	)	(3,785	)	(940	)	(2,842	)
Adjustments to maintain reserves		92		(120	)	(21	)	(50	)	684		2,986		(3	)	(32	)
Net equity transactions		(1,402,651	)	1,095,380		(18,532	)	32,631		(563,615	)	(523,718	)	(12,230	)	(108,494	)
Net change in contract owners’ equity		(1,806,916	)	1,859,920		(191	)	44,768		(196,732	)	22,819		(7,095	)	(82,089	)
Contract owners’ equity beginning of period		3,282,788		1,422,868		288,219		243,451		4,298,808		4,275,989		169,326		251,415
Contract owners’ equity end of period	$	1,475,872		3,282,788		288,028		288,219		4,102,076		4,298,808		162,231		169,326
CHANGES IN UNITS:
Beginning units		121,543		71,646		18,050		16,011		246,991		279,865		21,787		36,681
Units purchased		22,854		82,937		11,591		5,270		40,715		31,460		9,949		44,505
Units redeemed		(77,579	)	(33,040	)	(12,645	)	(3,231	)	(72,207	)	(64,334	)	(11,090	)	(59,399	)
Ending units		66,818		121,543		16,996		18,050		215,499		246,991		20,646		21,787

(Continued)

38

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		WFGrowth				WFLgCpGr				WFMidCpGr
Investment activity:		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(6,485	)	(3,537	)	(25,673	)	(26,088	)	(4,372	)	(5,495	)
Realized gain (loss) on investments		34,631		8,533		87,773		(143,905	)	1,547		30,472
Change in unrealized gain (loss) on investments		79,411		3,861		235,259		201,292		(25,872	)	(37,995	)
Reinvested capital gains		–		–		–		–		75,341		37,411
Net increase (decrease) in contract owners’ equity resulting from operations		107,557		8,857		297,359		31,299		46,644		24,393
Equity transactions:
Purchase payments received from contract owners (note 3)		124,816		142,874		166,310		223,946		29,528		80,358
Transfers between funds		135,008		104,967		(48,094	)	(52,710	)	105,630		(154,403	)
Redemptions (note 3)		(111,515	)	(36,772	)	(402,328	)	(349,363	)	(79,250	)	(45,569	)
Annuity benefits		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		–		–		(2,806	)	(3,282	)	–		–
Contingent deferred sales charges (note 2)		(1,570	)	(1,048	)	(651	)	(643	)	(904	)	(652	)
Adjustments to maintain reserves		(24	)	(15	)	(37	)	(21	)	(10	)	(92	)
Net equity transactions		146,715		210,006		(287,606	)	(182,073	)	54,994		(120,358	)
Net change in contract owners’ equity		254,272		218,863		9,753		(150,774	)	101,638		(95,965	)
Contract owners’ equity beginning of period		400,625		181,762		1,910,814		2,061,588		301,104		397,069
Contract owners’ equity end of period	$	654,897		400,625		1,920,567		1,910,814		402,742		301,104
CHANGES IN UNITS:
Beginning units		31,689		15,301		78,113		86,404		24,109		35,742
Units purchased		27,476		29,679		7,400		14,204		14,135		34,463
Units redeemed		(17,999	)	(13,291	)	(18,168	)	(22,495	)	(10,752	)	(46,096	)
Ending units		41,166		31,689		67,345		78,113		27,492		24,109

See accompanying notes to financial statements.

39

NATIONWIDE VARIABLE ACCOUNT

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 Variable Account (the Account) was established pursuant to a resolution of the Board of Directors of Nationwide Life Insurance Company (the Company) on March 3, 1976. The Account is registered as a unit investment trust under the Investment Company Act of 1940.

The Company offers Individual Deferred Variable Annuity Contracts through the Account. As of December 25, 1982, only tax qualified contracts are issued. The primary distribution for the contract is through the Company for Individual Retirement Account rollovers; however, other distributors may be utilized.

(b) The Contracts

Only contracts without a front-end sales charge, but with a contingent deferred sales charge and certain other fees, are offered for purchase. See note 2 for a discussion of contract charges.

With certain exceptions, contract owners in either the accumulation or the payout phase may invest in the following:

AIM Basic Balanced Fund – Investor Class (AIMBalance)

AIM Dynamics Fund – Investor Class (AIMDynam)

AIM Small Cap Growth Fund – Investor Class (AIMSCapGr)

AIM Small Company Growth Fund – Investor Class (AIMSmCoGr)*

AIM Total Return Fund – Investor Class (AIMTotReturn)*

American Century Growth Fund – Investor Class (ACGro)

American Century Income & Growth Fund – Class A (ACIncGroA)

American Century Income & Growth Fund – Investor Class (ACIncGro)

American Century International Growth Fund – Advisor Class (ACIntlGrA)

American Century International Growth Fund – Investor Class (ACIntlGr)

American Century Short-Term Government Fund – Investor Class (ACSTGvt)

American Century Ultra^® Fund – Investor Class (ACUltra)

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

    American Century VP – International Fund – Class IV (ACVPInt4)

Credit Suisse Global Fixed Income Fund – Common Shares (CSGIobFixInc)

Credit Suisse Mid-Cap Core Fund – Common Class

    (formerly Credit Suisse Mid Cap Growth Fund – Common Shares) (CSMidCpGr)

Delaware Delchester Fund – Institutional Class (DelDelchester)

Dreyfus A Bonds Plus, Inc. (DryABonds)

Dreyfus Appreciation Fund, Inc. (DryApp)

Dreyfus Balanced Fund, Inc. (DryBal)*

Dreyfus Emerging Leaders Fund (DryELead)

Dreyfus Premier Balanced Opportunity Fund – Class Z (DryBalOpp)

Dreyfus S&P 500 Index Fund (DrySP500Ix)

Evergreen Equity Income Fund – Class I (EvEqInc)

Federated Equity Income Fund, Inc. – Class F Shares (FedEqIncome)

Federated High Yield Trust (FedHiYld)

(Continued)

40

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

Federated Intermediate Corporate Bond Fund – Institutional Service Shares (FedIntCorpBd)

Federated Investment Series Funds, Inc. – Bond Fund – Class F Shares (FedBdFd)

Fidelity^® Advisor Balanced Fund – Class A (FidABalA)

Fidelity^® Advisor Balanced Fund – Class T (FidABalT)

Fidelity^® Advisor Equity Growth Fund – Class A (FidAEGroA)

Fidelity^® Advisor Equity Income Fund – Class A (FidAEqIncA)

Fidelity^® Advisor Equity Income Fund – Class T (FidAEqIncT)

Fidelity^® Advisor Growth Opportunities Fund – Class A (FidAGrOppA)

Fidelity^® Advisor Growth Opportunities Fund – Class T (FidAGrOppT)

Fidelity^® Advisor High Income Advantage Fund – Class T (FidAHiIncT)

Fidelity^® Advisor Overseas Fund – Class A (FidAOvA)

Fidelity^® Asset Manager™ (FidAsMgr)

Fidelity^® Capital & Income Fund (FidCapInc)

Fidelity^® Equity-Income Fund (FidEqInc)

Fidelity^® Magellan^® Fund (FidMgln)

Fidelity^® Puritan^® Fund (FidPurtn)

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

    Fidelity^® VIP – High Income Portfolio – Initial Class (FidVIPHI)

    Fidelity^® VIP – Overseas Portfolio – Service Class 2 R (FidVIPOvS2R)

Franklin Mutual Series Fund, Inc. – Mutual Shares Fund – Class A (FranMutSer)

Franklin Small Mid Cap Growth Fund I – Class A (FranSmMCpGr)

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

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

    Franklin Value Investors Trust – Balance Sheet Investment Fund – Class A (FranBSInv)

Portfolios of the Janus Adviser Series;

    Janus Adviser Series – Balanced Fund – Class S (JAdvBal)

    Janus Adviser Series – International Growth Fund – Class S (JAdvIntlGr)

    Janus Adviser Series – Worldwide Fund – Class S (JAdWrld)

Portfolios of the Janus Equity Funds;

    Janus Equity Funds – Janus Fund (JanFund)

    Janus Equity Funds – Janus Twenty Fund (Jan20Fd)

    Janus Equity Funds – Janus Worldwide Fund (JanWrldwde)

Lazard Small Cap Portfolio – Open Shares (LazSmCap)

Lehman Brothers Short Duration Bond Fund – Investor Class

    (formerly Neuberger Berman Limited Maturity Bond Fund – Investor Class) (LBShrtDBd)

MFS^® Strategic Income Fund – Class A (MFSStratInc)

Nationwide Bond Fund – Class D (formerly Gartmore Bond Fund – Class D) (NWBondD)

Nationwide Bond Index Fund – Class A

    (formerly Gartmore Bond Index Fund – Class A) (NWBondInx)

Nationwide Fund – Class D (formerly Gartmore Nationwide Fund – Class D) (NWFund)

Nationwide Government Bond Fund – Class D

    (formerly Gartmore Government Bond Fund – Class D) (NWGovBd)

Nationwide Growth Fund – Class A (formerly Gartmore Growth Fund – Class A) (NWGrowthA)

Nationwide Growth Fund – Class D (formerly Gartmore Growth Fund – Class D) (NWGrowthD)

Nationwide International Index Fund – Class A

    (formerly Gartmore International Index Fund – Class A) (NWIntIndx)

(Continued)

41

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

Nationwide Investor Destinations Aggressive Fund – Service Class

    (formerly Gartmore Investor Destinations Aggressive Fund – Service Class) (NWIDAggr)

Nationwide Investor Destinations Conservative Fund – Service Class

    (formerly Gartmore Investor Destinations Conservative Fund – Service Class) (NWIDCon)

Nationwide Investor Destinations Moderate Fund – Service Class

    (formerly Gartmore Investor Destinations Moderate Fund – Service Class) (NWIDMod)

Nationwide Investor Destinations Moderately Aggressive Fund – Service Class

    (formerly Gartmore Investor Destinations Moderately Aggressive Fund – Service Class)     (NWIDModAgg)

Nationwide Investor Destinations Moderately Conservative Fund – Service Class

    (formerly Gartmore Investor Destinations Moderately Conservative Fund – Service Class)

    (NWIDModCon)

Nationwide Large Cap Value Fund – Class A

    (formerly Gartmore Large Cap Value Fund – Class A) (NWLgCpVal)

Nationwide Mid Cap Market Index Fund – Class A

    (formerly Gartmore Mid Cap Market Index Fund – Class A) (NWMdCpMkt)

Nationwide Money Market Fund – Prime Shares

    (formerly Gartmore Money Market Fund – Prime Shares) (NWMyMktP)

Nationwide Money Market Fund – Service Class

    (formerly Gartmore Money Market Fund – Service Class) (NWMyMktS)

Nationwide S&P 500 Index Fund – Service Class

    (formerly Gartmore S&P 500 Index Fund – Service Class) (NWSP500Indx)

Nationwide Small Cap Fund – Class A

    (formerly Gartmore Small Cap Fund – Class A) (NWSmCap)

Nationwide Small Cap Index Fund – Class A

    (formerly Gartmore Small Cap Index Fund – Class A) (NWSmCapIx)

Nationwide Value Opportunities Fund – Class A

    (formerly Gartmore Value Opportunities Fund – Class A) (NWValOpp)

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

    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)

Neuberger Berman Genesis Fund – Trust Class (NBGen)

Neuberger Berman Guardian Fund – Investor Class (NBGuard)

Neuberger Berman Guardian Fund – Trust Class (NBGuardT)

Neuberger Berman Partners Fund – Investor Class (NBPart)

Neuberger Berman Partners Fund – Trust Class (NBPartT)

Neuberger Berman Socially Responsive Fund – Trust Class (NBSocRes)

Oppenheimer Capital Appreciation Fund A (OppCapApA)

Oppenheimer Champion Income Fund A (OppChpIncA)

Oppenheimer Global Fund A (OppGlobA)

Oppenheimer Strategic Income Fund A (OppStrIncA)

Oppenheimer VAF – Global Securities Fund – Class 4 (OppGlSec4)

Phoenix Balanced Fund – Class A (PhxBalFd)

PIMCO Total Return Fund – Class A (PimTotRetA)

Putnam International Equity Fund – Class A (PutIntlEq)

Putnam Voyager Fund – Class A (PutVoyager)

(Continued)

42

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

Strong Advisor Mid Cap Growth Fund – Class Z (StrMidCapGr)*

Templeton Foreign Fund – Class A (TemForeign)

The Dreyfus Premier Third Century Fund, Inc. – Class Z (Dry3dCen)

Van Kampen Growth and Income Fund – Class A (VKGroInc)

Van Kampen Mid Cap Growth Fund – Class A (VKMidCapGro)

Van Kampen Real Estate Securities Fund – Class A (VKRealEstSec)

Waddell & Reed Advisors Small Cap Fund – Class A (WRAdSmCap)

Wells Fargo Advantage FundsSM – Common Stock Fund – Class Z (WFComStk)

Wells Fargo Advantage FundsSM – Growth and Income Fund – Investor Class (WFGrInc)

Wells Fargo Advantage FundsSM – Growth Fund – Investor Class (WFGrowth)

Wells Fargo Advantage FundsSM – Large Cap Growth Fund – Investor Class (WFLgCpGr)

Wells Fargo Advantage FundsSM – Mid Cap Growth Fund – Class Z (WFMidCpGr)

*At December 31, 2007, contract owners were not invested in this fund.

The contract owners’ equity is affected by the investment results of each fund, equity transactions by contract owners and certain contract expenses (see note 2). 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.

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. Con- sequently, the investment performance of publicly traded mutual funds and any corresponding underlying mutual funds may differ substantially.

A purchase payment could be presented as a negative equity transaction in the Statements of Changes in Contract Owners’ Equity for premiums applied and subsequently reversed and related gain realized by the contract owner, or a realized gain resulting from transfers made into and out of the fund within the current period, if applicable.

(c) Security Valuation, Transactions and Related Investment Income

Investments in underlying mutual funds are valued based on the closing net asset value per share at December 31, 2007 of such funds, which value their investment securities at fair value. The cost of invest- ments sold is determined on a First in – First out basis. Investment transactions are accounted for on the trade date (date the order to buy or sell is executed) and dividends (which include capital gain distribu- tions) 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 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.

(Continued)

43

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

(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.

(f) Calculation of Annuity Reserves

Annuity reserves are computed for contracts in the variable payout stage according to industry standard mortality tables. The assumed investment return is 3.5% unless the annuitant elects otherwise, in which case the rate may vary from 3.5% to 7%, as regulated by the laws of the respective states. The mortality risk is fully borne by the Company and may result in additional amounts being transferred into the Account by the Company to cover greater longevity of annuitants than expected. Conversely, if reserves exceed amounts required, transfers may be made to the Company.

(g) 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) Expenses

The Company does not deduct a sales charge from purchase payments received from the contract owners. However, if any part of the contract value of such contracts is surrendered, the Company will, with certain exceptions, deduct from a contract owners’ contract value a contingent deferred sales charge.

For Soloist contracts issued prior to January 1, 1993, the contingent deferred sales charge will be equal to 5% of purchase payments surrendered from the contract. For Soloist contracts issued on or after January 1, 1993, the Company will deduct a contingent deferred sales charge not to exceed 7% of purchase payments surrendered. This charge declines 1% per year. For both contracts, after the purchase payment has been held in the contract for 7 years, the charge is 0%.

For Successor contracts, the standard contract does not include a contingent deferred sales charge. However, one of two optional contingent deferred sales charge schedules may be elected in return for a reduction in the annual mortality and expense risk charge.

No sales charges are deducted on redemptions used to purchase units in the fixed investment options of the Company.

On Soloist contracts, the Company deducts an annual contract maintenance charge of $30, which is satisfied by surrendering units. No contract maintenance charge is deducted on Successor contracts.

The Company deducts a mortality and expense risk charge assessed through the daily unit value calculation. The Option table below illustrates the annual rate for all contract level charges by product as well as the maximum variable account charge per product. The table also summarizes the contract level options available to contract holders. The options and related charges are described in more detail in the applicable product prospectus.

(Continued)

44

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

Nationwide Variable Account Options	Soloist	Successor
Variable Account Charges – Recurring	1.30%	1.20%
CDSC Options:
Seven Year CDSC	–	(0.25%)
Five Year CDSC	–	(0.10%)
Reduced Purchase Payment Option:
Initial lowered to $1,000 and subsequent lowered to $25.
In states other than Oregon	–	0.25%
In Oregon only	–	0.30%
Death Benefit Options:
Five-Year Reset	–	0.05%
If death before annuitization, benefit will be greatest of (i) contract value, (ii) purchase payments less surrenders or (iii) highest contract value before 86th birthday less surrenders.
One-Year Enhanced (for contracts issued on or after 1-2-01)	–	0.15%
If death before annuitization, benefit will be greatest of (i) contract value, (ii) purchase payments less surrenders or (iii) highest contract value before 86th birthday less surrenders.
Greater of One-Year or 5% Enhanced (for contracts issued on or after 1-2-01)	–	0.20%
If death before annuitization, benefit will be greatest of (i) contract value, (ii) purchase payments less surrenders, (iii) highest contract value before 86th birthday less surrenders or (iv) the 5% interest anniversary value.
One-Year Step Up (for contracts issued prior to 1-2-01)	–	0.10%
If death before annuitization, benefit will be greatest of (i) contract value, (ii) purchase payments less surrenders or (iii) highest contract value before 86th birthday less surrenders.
Guaranteed Minimum Income Benefit Options:
Provide for minimum guaranteed value that may replace contract value for annuitization under certain circumstances (for contracts issued prior to May 1, 2003).
Option 1	–	0.45%
Option 2	–	0.30%
Beneficiary Protector Option	–	0.40%
Upon annuitant death, in addition to any death benefit payable, an additional amount will be credited to contract.
Maximum Variable Account Charges (1) :	1.30%	2.55%

⁽¹⁾ When maximum options are elected. The contract charges indicated in bold, when summarized, represent the Maximum Variable Account Charges if all optional benefits available under the contract are elected including the most expensive of the mutually exclusive optional benefits.

(Continued)

45

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

The following table provides mortality and expense risk charges by asset fee rates for the period ended December 31, 2007.

	Total		AIMBalance	AIMDynam	AIMSCapGr	ACGro	ACIncGroA	ACIncGro	ACIntlGrA
0.95%	$	429,125	599	6,002	1,907	1,194	8,315	–	1,545
1.00%		20,621	–	137	24	–	202	–	–
1.05%		7,801	–	431	109	366	794	–	–
1.10%		134,393	91	5,896	200	274	2,437	–	116
1.15%		47,803	40	447	180	499	786	–	280
1.20%		335,944	484	5,419	1,974	4,189	8,279	–	1,130
1.25%		61,692	105	1,591	568	355	2,666	–	127
1.30%		3,098,490	–	61,773	18	92,742	317	83,549	–
1.35%		58,642	30	1,161	104	959	857	–	58
1.40%		58,212	815	889	80	357	3,681	–	80
1.45%		142,953	346	2,253	349	2,756	2,580	–	191
1.50%		24,242	62	310	330	198	421	–	114
1.55%		7,250	32	124	41	–	208	–	–
1.60%		4,353	–	9	15	–	7	–	–
1.65%		8,519	–	17	1	–	887	–	–
1.70%		3,637	–	–	–	–	–	–	–
1.75%		458	–	–	–	–	19	–	–
1.80%		356	–	–	–	–	–	–	–
1.85%		246	–	–	–	–	–	–	–
1.90%		1,229	–	–	–	–	92	–	–
2.05%		19	2	–	–	–	–	–	–
2.10%		16	–	–	–	–	–	–	–
2.25%		18	–	–	–	–	–	–	–
Totals	$	4,446,019	2,606	86,459	5,900	103,889	32,548	83,549	3,641
	ACIntlGr		ACSTGvt	ACUltra	ACVPInt4	CSGIobFixInc	CSMidCpGr	DelDelchester	DryABonds
0.95%	$	–	5,721	5,644	1,508	–	–	–	–
1.00%		–	1,967	49	66	–	–	–	–
1.05%		–	–	151	43	–	–	–	–
1.10%		–	229	2,423	3,326	–	–	–	–
1.15%		–	–	229	421	–	–	–	–
1.20%		–	2,296	8,684	3,545	–	–	–	–
1.25%		–	143	445	1,547	–	–	–	–
1.30%		20,851	19,800	122,982	26,431	8,614	38,659	5,941	29,079
1.35%		–	171	1,313	599	–	–	–	–
1.40%		–	473	798	1,435	–	–	–	–
1.45%		–	2,076	2,068	626	–	–	–	–
1.50%		–	76	304	133	–	–	–	–
1.55%		–	–	30	–	–	–	–	–
1.60%		–	–	8	152	–	–	–	–
1.65%		–	121	53	1	–	–	–	–
1.70%		–	–	–	–	–	–	–	–
1.75%		–	15	–	–	–	–	–	–
1.80%		–	–	–	–	–	–	–	–
1.85%		–	–	24	–	–	–	–	–
1.90%		–	15	–	49	–	–	–	–
2.05%		–	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	1	–	–	–	–	–
Totals	$	20,851	33,103	145,206	39,882	8,614	38,659	5,941	29,079
	DryApp		DryELead	DryBalOpp	DrySP500Ix	EvEqInc	FedEqIncome	FedHiYld	FedIntCorpBd
0.95%	$	6,171	72	1,425	–	–	583	1,903	2,495
1.00%		151	–	1,390	–	–	–	77	–
1.05%		–	–	386	–	–	–	8	–
1.10%		1,504	–	368	–	–	101	1,052	1,693
1.15%		314	–	21	–	–	–	464	171
1.20%		9,676	97	2,400	–	–	946	2,596	2,726
1.25%		1,316	59	327	–	–	104	422	190
1.30%		32,661	–	14,845	231,706	13,081	–	18,985	–

(Continued)

46

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

Continued	DryApp		DryELead	DryBalOpp	DrySP500Ix	EvEqInc	FedEqIncome	FedHiYld	FedIntCorpBd
1.35%		2,246	–	240	–	–	8	407	790
1.40%		524	–	175	–	–	–	1,340	–
1.45%		1,490	–	2,064	–	–	92	1,278	600
1.50%		1,120	–	77	–	–	1	158	38
1.55%		–	–	–	–	–	–	–	–
1.60%		97	–	3	–	–	–	74	–
1.65%		106	–	–	–	–	–	11	359
1.70%		–	–	–	–	–	–	–	–
1.75%		–	–	–	–	–	–	3	15
1.80%		–	–	–	–	–	–	–	–
1.85%		–	–	–	–	–	–	–	–
1.90%		17	–	–	–	–	–	41	1
2.05%		–	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	–	–	–	–	–
Totals	$	57,393	228	23,721	231,706	13,081	1,835	28,819	9,078
	FedBdFd		FidABalA	FidABalT	FidAEGroA	FidAEqIncA	FidAEqIncT	FidAGrOppA	FidAGrOppT
0.95%	$	2,334	1,599	–	5,127	15,781	–	295	–
1.00%		–	–	–	108	120	–	–	–
1.05%		188	93	–	–	440	–	–	–
1.10%		425	1,665	–	456	3,968	–	679	–
1.15%		–	–	–	335	2,074	–	343	–
1.20%		1,432	368	–	3,398	10,702	–	3,478	–
1.25%		448	1,214	–	242	2,024	–	320	–
1.30%		22,345	–	17,555	28	353	57,219	75	48,340
1.35%		44	557	–	257	4,131	–	207	–
1.40%		201	49	–	960	3,515	–	550	–
1.45%		718	547	–	1,626	6,088	–	1,054	–
1.50%		–	231	–	406	1,240	–	244	–
1.55%		–	–	–	12	276	–	–	–
1.60%		–	–	–	14	178	–	–	–
1.65%		–	–	–	272	894	–	–	–
1.70%		–	–	–	–	–	–	–	–
1.75%		–	–	–	–	45	–	–	–
1.80%		–	–	–	–	31	–	–	–
1.85%		–	–	–	–	50	–	–	–
1.90%		11	–	–	–	93	–	32	–
2.05%		13	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	–	–	–	–	–
Totals	$	28,159	6,323	17,555	13,241	52,003	57,219	7,277	48,340
	FidAHiIncT		FidAOvA	FidAsMgr	FidCapInc	FidEqInc	FidMgln	FidPurtn	FidVIPHI
0.95%	$	4,530	36	–	–	–	–	–	–
1.00%		183	–	–	–	–	–	–	–
1.05%		30	–	–	–	–	–	–	–
1.10%		47	–	–	–	–	–	–	–
1.15%		208	–	–	–	–	–	–	–
1.20%		961	88	–	–	–	–	–	–
1.25%		211	–	–	–	–	–	–	–
1.30%		16,146	–	32,440	5,382	140,888	198,551	120,415	304
1.35%		49	22	–	–	–	–	–	–
1.40%		199	–	–	–	–	–	–	–
1.45%		341	62	–	–	–	–	–	–
1.50%		103	–	–	–	–	–	–	–
1.55%		–	–	–	–	–	–	–	–
1.60%		–	–	–	–	–	–	–	–
1.65%		–	–	–	–	–	–	–	–
1.70%		–	–	–	–	–	–	–	–
1.75%		–	–	–	–	–	–	–	–
1.80%		–	–	–	–	–	–	–	–

(Continued)

47

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

Continued	FidAHiIncT		FidAOvA	FidAsMgr	FidCapInc	FidEqInc	FidMgln	FidPurtn	FidVIPHI
1.85%		–	–	–	–	–	–	–	–
1.90%		9	32	–	–	–	–	–	–
2.05%		–	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	–	–	–	–	–
Totals	$	23,017	240	32,440	5,382	140,888	198,551	120,415	304
	FidVIPOvS2R		FranMutSer	FranSmMCpGr	FrVIPForSec3	FranBSInv	JAdvBal	JAdvIntlGr	JAdWrld
0.95%	$	3,959	19,556	11,270	3,714	15,153	4,769	–	1,062
1.00%		33	835	342	489	883	52	–	49
1.05%		–	112	641	67	57	–	–	–
1.10%		4,218	3,434	870	1,181	5,497	490	–	375
1.15%		494	2,837	564	1,162	1,764	180	–	–
1.20%		3,654	11,187	5,867	4,893	15,176	3,900	528	2,608
1.25%		1,604	3,850	1,258	853	3,110	951	183	489
1.30%		24,271	71,215	173	39,959	606	101	106	–
1.35%		299	3,104	714	840	3,373	849	6	323
1.40%		40	4,940	699	3,596	4,588	513	1	91
1.45%		1,230	4,969	3,048	2,047	8,039	1,304	83	1,230
1.50%		74	1,121	654	592	499	433	1	12
1.55%		–	117	39	–	178	–	–	4
1.60%		119	261	46	47	4	–	–	–
1.65%		1	935	263	82	739	243	–	69
1.70%		–	–	–	–	–	–	–	–
1.75%		–	–	–	–	–	–	–	–
1.80%		–	32	32	–	–	–	–	–
1.85%		–	–	–	–	24	–	–	–
1.90%		–	98	2	–	–	–	14	8
2.05%		–	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	–	–	–	–	–
Totals	$	39,996	128,603	26,482	59,522	59,690	13,785	922	6,320
	JanFund		Jan20Fd	JanWrldwde	LazSmCap	LBShrtDBd	MFSStratInc	NWBondD	NWBondInx
0.95%	$	4,167	4,847	22	975	–	–	1,265	388
1.00%		47	31	61	–	–	–	71	–
1.05%		395	359	–	–	–	–	167	–
1.10%		1,267	1,684	46	25	–	–	–	197
1.15%		198	1,053	–	–	–	–	–	23
1.20%		2,565	5,839	166	535	–	–	325	1,468
1.25%		1,610	1,955	1,070	91	–	–	165	125
1.30%		86,076	287,354	73,083	31,896	14,375	11,709	17,039	54
1.35%		569	408	–	55	–	–	6	228
1.40%		110	859	–	8	–	–	–	13
1.45%		1,322	1,172	68	201	–	–	959	1,205
1.50%		418	173	2	59	–	–	–	37
1.55%		37	49	–	–	–	–	–	–
1.60%		–	38	–	269	–	–	–	85
1.65%		32	59	–	–	–	–	–	42
1.70%		–	–	–	–	–	–	–	–
1.75%		–	–	–	–	–	–	–	–
1.80%		–	–	–	–	–	–	–	–
1.85%		–	–	–	–	–	–	–	–
1.90%		17	117	–	98	–	–	18	–
2.05%		–	–	–	–	–	–	3	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	–	–	–	–	–
Totals	$	98,830	305,997	74,518	34,212	14,375	11,709	20,018	3,865

(Continued)

48

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

	NWFund		NWGovBd	NWGrowthA	NWGrowthD	NWIntIndx	NWIDAggr	NWIDCon	NWIDMod
0.95%	$	531	10,374	557	415	–	3,314	13,989	37,875
1.00%		39	182	–	–	–	1,824	652	1,089
1.05%		–	45	–	–	–	–	–	–
1.10%		905	1,563	131	–	33	3,209	430	8,595
1.15%		93	189	–	–	–	1,076	291	9,692
1.20%		1,106	3,152	868	269	192	7,771	3,093	18,851
1.25%		235	54	93	–	1	218	223	3,004
1.30%		58,803	24,231	3,760	9,180	–	36	139	228
1.35%		92	856	328	4	1	1,433	1,330	1,995
1.40%		129	2,629	10	–	–	618	–	3,343
1.45%		810	1,524	280	72	66	3,053	3,109	12,097
1.50%		9	39	–	–	–	308	39	2,752
1.55%		–	–	–	–	–	–	228	1,731
1.60%		–	13	–	–	–	204	–	86
1.65%		17	–	–	–	1	68	–	712
1.70%		–	–	–	–	–	–	–	3,637
1.75%		–	–	–	–	–	–	–	202
1.80%		–	–	–	–	–	–	–	–
1.85%		–	–	–	–	–	–	–	–
1.90%		–	49	–	–	1	–	–	25
2.05%		–	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	–	–	–	–	–
Totals	$	62,769	44,900	6,027	9,940	295	23,132	23,523	105,914
	NWIDModAgg		NWIDModCon	NWLgCpVal	NWMdCpMkt	NWMyMktP	NWMyMktS	NWSP500Indx	NWSmCap
0.95%	$	8,062	10,275	4,310	6,943	–	28,762	5,327	3,265
1.00%		514	300	312	240	–	985	548	275
1.05%		–	–	44	–	–	216	172	57
1.10%		7,178	4,885	1,994	2,060	–	16,522	4,638	1,313
1.15%		3,647	740	272	730	–	3,485	140	913
1.20%		15,184	3,810	3,205	4,229	–	15,279	11,431	3,380
1.25%		864	1,890	975	562	–	1,842	2,388	647
1.30%		331	140	24,384	72	141,376	309	17,313	54,913
1.35%		3,767	1,449	785	1,157	–	2,392	1,266	202
1.40%		1,639	2,079	22	262	–	807	79	469
1.45%		7,812	2,881	1,406	1,967	–	7,285	5,099	1,594
1.50%		2,728	300	133	529	–	1,233	2,078	16
1.55%		262	–	–	–	–	–	65	–
1.60%		486	11	12	418	–	88	108	–
1.65%		147	19	140	124	–	52	32	78
1.70%		–	–	–	–	–	–	–	–
1.75%		–	–	–	26	–	61	22	–
1.80%		–	–	–	–	–	–	126	–
1.85%		–	–	–	–	–	–	75	–
1.90%		28	–	–	4	–	106	–	–
2.05%		–	–	–	–	–	–	1	–
2.10%		–	–	–	16	–	–	–	–
2.25%		–	–	–	–	–	–	7	–
Totals	$	52,649	28,779	37,994	19,339	141,376	79,424	50,915	67,122
	NWSmCapIx		NWValOpp	NVITIDAgg2	NVITIDCon2	NVITIDMod2	NVITIDModAg2	NVITIDModCon2	NVITJPBal
0.95%	$	5,047	1,393	–	–	–	–	–	411
1.00%		115	105	–	–	–	–	–	–
1.05%		–	–	–	–	–	–	–	–
1.10%		745	191	–	–	–	–	–	–
1.15%		500	–	–	–	–	–	–	21
1.20%		4,155	475	–	–	–	–	–	862
1.25%		1,086	146	–	–	–	–	–	28
1.30%		74	–	14,319	1,026	17,923	27,661	2,541	958
1.35%		1,221	147	–	–	–	–	–	24
1.40%		237	1	–	–	–	–	–	–
1.45%		1,215	253	–	–	–	–	–	333
1.50%		380	51	–	–	–	–	–	–

(Continued)

49

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

Continued	NWSmCapIx		NWValOpp	NVITIDAgg2	NVITIDCon2	NVITIDMod2	NVITIDModAg2	NVITIDModCon2	NVITJPBal
1.55%		–	–	–	–	–	–	–	–
1.60%		110	321	–	–	–	–	–	–
1.65%		55	–	–	–	–	–	–	–
1.70%		–	–	–	–	–	–	–	–
1.75%		–	–	–	–	–	–	–	–
1.80%		–	–	–	–	–	–	–	–
1.85%		–	–	–	–	–	–	–	–
1.90%		–	–	–	–	–	–	–	–
2.05%		–	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	–	–	–	–	–
Totals	$	14,940	3,083	14,319	1,026	17,923	27,661	2,541	2,637
	NBGen		NBGuard	NBGuardT	NBPart	NBPartT	NBSocRes	OppCapApA	OppChpIncA
0.95%	$	22,144	–	443	–	1,677	10,702	9,550	686
1.00%		1,053	–	59	–	394	308	202	–
1.05%		168	–	–	–	336	–	73	–
1.10%		9,507	–	252	–	115	467	1,287	–
1.15%		2,333	–	–	–	386	180	292	–
1.20%		20,845	–	1,172	–	1,399	2,553	7,340	1,319
1.25%		2,096	–	102	–	239	62	603	179
1.30%		132,389	35,784	–	82,524	–	3,411	70	163
1.35%		3,961	–	180	–	91	402	964	349
1.40%		2,942	–	8	–	–	1,143	855	10
1.45%		4,968	–	610	–	177	949	2,712	460
1.50%		570	–	1	–	28	2	722	–
1.55%		538	–	–	–	1,451	–	–	–
1.60%		156	–	–	–	–	–	121	–
1.65%		–	–	–	–	–	–	367	–
1.70%		–	–	–	–	–	–	–	–
1.75%		–	–	–	–	–	–	–	–
1.80%		–	–	–	–	–	–	29	–
1.85%		–	–	–	–	–	–	–	–
1.90%		8	–	–	–	11	–	–	–
2.05%		–	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	–	–	–	–	–
Totals	$	203,678	35,784	2,827	82,524	6,304	20,179	25,187	3,166
	OppGlobA		OppStrIncA	OppGlSec4	PhxBalFd	PimTotRetA	PutIntlEq	PutVoyager	TemForeign
0.95%	$	10,357	2,211	15,510	–	13,339	–	16	10,254
1.00%		520	–	903	–	250	–	–	48
1.05%		592	86	749	–	–	–	–	63
1.10%		3,031	714	5,803	–	3,610	–	21	1,405
1.15%		1,357	482	1,690	–	1,470	–	156	–
1.20%		8,115	2,294	14,012	–	10,644	–	383	1,917
1.25%		1,798	231	4,010	–	846	–	–	129
1.30%		121,615	–	54,745	12,168	521	–	–	42,203
1.35%		837	226	1,477	–	1,433	–	23	425
1.40%		1,508	583	928	–	2,206	–	–	1,138
1.45%		1,440	1,629	4,900	–	4,140	81	57	1,058
1.50%		619	–	445	–	579	1	13	66
1.55%		108	–	–	–	1,706	–	–	–
1.60%		12	20	48	–	188	–	–	–
1.65%		26	–	136	–	966	–	–	102
1.70%		–	–	–	–	–	–	–	–
1.75%		30	–	–	–	–	–	–	–
1.80%		–	–	–	–	106	–	–	–
1.85%		–	–	–	–	–	–	–	–
1.90%		66	–	56	–	–	–	–	–
2.05%		–	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	2	–	8	–	–	–
Totals	$	152,031	8,476	105,414	12,168	42,012	82	669	58,808

(Continued)

50

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

	Dry3dCen		VKGroInc	VKMidCapGro	VKRealEstSec	WRAdSmCap	WFComStk	WFGrInc	WFGrowth
0.95%	$	230	18,265	5,316	10,627	935	7,839	378	445
1.00%		–	543	223	1,012	–	559	–	–
1.05%		–	93	46	55	–	169	–	–
1.10%		5	3,033	640	2,660	442	709	–	26
1.15%		172	1,010	210	780	–	–	–	313
1.20%		928	7,262	4,285	8,291	1,353	4,782	1,493	3,640
1.25%		252	619	946	1,380	146	737	43	918
1.30%		9,910	347	77	103	–	36,978	–	–
1.35%		15	2,654	265	1,102	46	470	25	38
1.40%		–	1,947	112	690	13	119	10	13
1.45%		295	3,096	1,210	2,968	522	2,472	144	1,092
1.50%		13	209	146	156	27	320	4	–
1.55%		–	–	14	–	–	–	–	–
1.60%		–	120	–	174	72	4	155	–
1.65%		–	164	–	126	–	–	–	–
1.70%		–	–	–	–	–	–	–	–
1.75%		–	20	–	–	–	–	–	–
1.80%		–	–	–	–	–	–	–	–
1.85%		24	–	–	–	–	–	49	–
1.90%		–	13	–	42	–	56	–	–
2.05%		–	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	–	–	–	–	–
Totals	$	11,844	39,395	13,490	30,166	3,556	55,214	2,301	6,485
	WFLgCpGr		WFMidCpGr
0.95%	$	–	1,418
1.00%		–	–
1.05%		–	–
1.10%		–	40
1.15%		–	96
1.20%		–	1,026
1.25%		–	362
1.30%		25,673	–
1.35%		–	226
1.40%		–	84
1.45%		–	1,035
1.50%		–	85
1.55%		–	–
1.60%		–	–
1.65%		–	–
1.70%		–	–
1.75%		–	–
1.80%		–	–
1.85%		–	–
1.90%		–	–
2.05%		–	–
2.10%		–	–
2.25%		–	–
Totals	$	25,673	4,372

(Continued)

51

  NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

(3) 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. The fixed account assets are not reflected in the accompanying financial statements. In addition, the Account portion of contract owner loans is transferred to the accounts of the Company for administration and collection. Loan repayments are transferred to the Account at the direction of the contract owner. For the years ended December 31, 2007 and 2006, total transfers to the Account from the fixed account were $918,080 and $1,793,231, respectively, and total transfers from the Account to the fixed account were $1,018,823 and $1,623,070, respectively. Transfers from the Account to the fixed account are included in redemptions, and transfers to the Account from the fixed account are included in purchase payments received from contract owners, as applicable, on the accompanying Statements of Changes in Contract Owners’ Equity.

For guaranteed minimum death benefits, the Company contributed $74,878 and $100,013 to the Account in the form of additional premium to contract owner accounts for the years ended December 31, 2007 and 2006, respectively. These amounts are included in purchase payments received from contract owners and are credited at time of annuitant death.

(Continued)

52

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

(4) Financial Highlights

The Company offers several variable annuity products through the Account that have unique combinations of features and fees that are assessed to the contract owner. Differences in fee structures result in a variety of contract expense rates, unit fair values and total returns. The following tabular presentation is a summary of units, unit fair values and contract owners’ equity outstanding for variable annuity contracts as of the end of the periods indicated, and contract expense rate, investment income ratio and total return for each period in the five-year period ended December 31, 2007. The information is presented as a range of minimum to maximum values based upon product grouping. The range is determined by identifying the lowest and the highest contract expense rate. The unit fair values and total returns related to these identified contract expense rates are also disclosed as a range below. Accordingly, some individual contract amounts may not be within the ranges presented.

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
AIM Basic Balanced Fund – Investor Class
2007	0.95% to 2.05%	14,079	$	11.44 to 11.13	$	159,689	2.45%	1.48% to   0.34%
2006	0.95% to 2.05%	20,074		11.27 to 11.09		225,370	2.21%	9.62% to   8.40%
2005	0.95% to 2.05%	29,943		10.28 to 10.23		307,515	1.83%	2.82% to   2.30%	(a) (b)
AIM Dynamics Fund – Investor Class
2007	0.95% to 1.65%	581,092		8.10 to   7.67		6,784,597	0.00%	11.27% to 10.48%
2006	0.95% to 1.65%	618,013		7.28 to   6.94		6,513,896	0.00%	15.43% to 14.61%
2005	0.95% to 1.70%	672,720		6.30 to   6.04		6,094,108	0.00%	9.32% to   8.49%
2004	0.95% to 1.70%	721,091		5.77 to   5.57		6,175,372	0.00%	10.88% to 10.04%
2003	0.95% to 1.70%	833,176		5.20 to   5.06		6,557,162	0.00%	36.96% to 35.93%
AIM Small Cap Growth Fund – Investor Class
2007	0.95% to 1.65%	44,612		11.28 to 11.14		501,565	0.00%	10.32% to   9.54%
2006	0.95% to 1.60%	46,426		10.22 to 10.18		474,066	0.00%	2.24% to   1.75%	(a) (b)
AIM Small Company Growth Fund – Investor Class
2005	0.95% to 1.60%	116,299		7.28 to   7.01		836,317	0.00%	4.49% to   3.81%
2004	0.95% to 1.60%	76,283		6.96 to   6.75		526,465	0.00%	11.97% to 11.23%
2003	0.95% to 1.65%	92,094		6.22 to   6.06		569,039	0.00%	32.23% to 31.29%
AIM Total Return Fund – Investor Class
2004	0.95% to 2.05%	34,578		9.92 to   9.42		338,932	1.28%	2.76% to   1.62%
2003	0.95% to 2.05%	43,049		9.66 to   9.27		411,647	1.49%	15.31% to 14.03%
American Century Growth Fund – Investor Class
2007	0.95% to 1.50%	179,759		8.28 to   7.94		7,896,699	0.13%	17.85% to 17.19%
2006	0.95% to 1.50%	221,404		7.03 to   6.77		8,016,547	0.07%	6.92% to   6.33%
2005	0.95% to 1.50%	218,579		6.57 to   6.37		8,245,172	0.40%	3.85% to   3.27%
2004	0.95% to 1.70%	216,274		6.33 to   6.11		8,691,140	0.04%	8.86% to   8.04%
2003	0.95% to 1.70%	199,202		5.82 to   5.66		8,425,454	0.00%	23.23% to 22.30%
American Century Income & Growth Fund – Class A
2007	0.95% to 1.90%	236,674		10.88 to 10.10		2,530,492	1.28%	-1.49% to  -2.44%
2006	0.95% to 1.90%	246,562		11.04 to 10.36		2,684,228	1.54%	15.76% to 14.65%
2005	0.95% to 1.90%	283,932		9.54 to   9.03		2,679,433	1.70%	3.54% to   2.55%
2004	0.95% to 1.90%	261,253		9.21 to   8.81		2,385,190	1.77%	11.64% to 10.57%
2003	0.95% to 1.90%	254,671		8.25 to   7.97		2,086,730	2.02%	28.10% to 26.88%
American Century Income & Growth Fund – Investor Class
2007	1.30%	253,051		21.92		5,546,451	1.47%	-1.60%
2006	1.30%	302,858		22.27		6,745,819	1.80%	15.66%
2005	1.30%	357,908		19.26		6,892,875	1.88%	3.43%
2004	1.30%	404,012		18.62		7,522,589	1.95%	11.51%
2003	1.30%	431,936		16.70		7,212,151	1.70%	27.94%
American Century International Growth Fund – Advisor Class
2007	0.95% to 1.50%	28,857		11.35 to 10.88		323,828	0.33%	15.78% to 15.14%
2006	0.95% to 1.50%	34,049		9.81 to   9.45		330,497	0.48%	23.53% to 22.85%
2005	0.95% to 1.50%	42,287		7.94 to   7.69		332,738	1.49%	11.99% to 11.37%
2004	0.95% to 1.50%	46,456		7.09 to   6.91		326,791	0.37%	13.95% to 13.31%
2003	0.95% to 1.90%	172,001		6.22 to   6.00		1,061,173	0.73%	23.92% to 22.74%

(Continued)

53

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
American Century International Growth Fund – Investor Class
2007	1.30%	47,089	$	32.49	$	1,529,948	0.55%	15.73%
2006	1.30%	58,486		28.07		1,641,978	0.72%	23.38%
2005	1.30%	73,235		22.75		1,666,429	1.64%	11.87%
2004	1.30%	91,337		20.34		1,857,828	0.96%	13.81%
2003	1.30%	115,663		17.87		2,067,110	0.81%	23.75%
American Century Short-Term Government Fund – Investor Class
2007	0.95% to 1.90%	140,799		12.77 to 11.86		2,560,887	4.57%	5.35% to  4.34%
2006	0.95% to 1.90%	158,143		12.12 to 11.36		2,733,820	4.22%	3.02% to  2.03%
2005	0.95% to 1.90%	169,897		11.76 to 11.14		2,899,210	3.08%	0.70% to -0.26%
2004	0.95% to 1.90%	173,163		11.68 to 11.17		3,079,892	1.87%	-0.30% to -1.25%
2003	0.95% to 1.90%	194,103		11.71 to 11.31		3,453,840	2.08%	0.15% to -0.81%
American Century Ultra® Fund – Investor Class
2007	0.95% to 1.85%	630,015		8.24 to   7.68		11,452,579	0.00%	20.66% to  19.56%
2006	0.95% to 2.25%	791,122		6.83 to   8.66		12,041,818	0.00%	-4.20% to   -5.45%
2005	0.95% to 2.25%	1,011,426		7.13 to   9.16		16,072,947	0.12%	1.15% to   -0.17%
2004	0.95% to 2.25%	1,146,821		7.05 to   9.17		18,177,859	0.00%	9.64% to    8.20%
2003	0.95% to 2.25%	1,249,922		6.43 to   8.48		18,519,651	0.00%	24.63% to  23.00%
American Century VP – International Fund – Class IV
2007	0.95% to 1.90%	211,966		18.24 to 17.61		3,823,715	0.50%	16.77% to 15.65%
2006	0.95% to 1.90%	142,961		15.62 to 15.23		2,215,512	1.04%	23.68% to 22.50%
2005	0.95% to 1.90%	50,510		12.63 to 12.43		634,500	0.68%	11.90% to 10.83%
2004	1.05% to 1.90%	55,739		11.28 to 11.22		627,944	0.00%	12.81% to 12.17%	(a) (b)
Credit Suisse Global Fixed Income Fund – Common Shares
2007	1.30%	46,017		15.66		720,482	5.46%	6.65%
2006	1.30%	49,753		14.68		730,372	2.47%	4.24%
2005	1.30%	71,866		14.08		1,012,033	2.19%	-6.96%
2004	1.30%	65,791		15.14		995,819	7.01%	8.25%
2003	1.30%	72,744		13.98		1,017,116	13.00%	12.98%
Credit Suisse Mid-Cap Core Fund – Common Class
2007	1.30%	158,338		17.23		2,727,762	0.00%	10.13%
2006	1.30%	200,167		15.64		3,131,298	0.00%	0.39%
2005	1.30%	243,568		15.58		3,795,283	0.00%	5.52%
2004	1.30%	268,276		14.77		3,961,483	0.00%	12.10%
2003	1.30%	282,864		13.17		3,726,032	0.00%	43.47%
Delaware Delchester Fund – Institutional Class
2007	1.30%	23,032		17.14		394,832	8.86%	0.68%
2006	1.30%	26,667		17.03		454,075	7.35%	12.64%
2005	1.30%	27,252		15.12		411,980	7.90%	2.39%
2004	1.30%	40,881		14.76		603,572	6.40%	13.75%
2003	1.30%	43,328		12.98		562,391	9.96%	29.05%
Dreyfus A Bonds Plus, Inc.
2007	1.30%	124,170		16.05		1,993,145	4.86%	2.09%
2006	1.30%	145,007		15.72		2,279,940	4.52%	2.68%
2005	1.30%	178,348		15.31		2,731,017	4.56%	0.98%
2004	1.30%	213,109		15.16		3,231,535	4.18%	1.76%
2003	1.30%	231,833		14.90		3,454,549	4.07%	3.29%
Dreyfus Appreciation Fund, Inc.
2007	0.95% to 1.90%	338,727		11.33 to 10.52		4,412,754	1.28%	5.53% to   4.51%
2006	0.95% to 1.90%	405,513		10.74 to 10.07		5,045,604	1.32%	15.16% to 14.06%
2005	0.95% to 1.90%	501,974		9.32 to   8.83		5,380,498	1.37%	3.15% to   2.17%
2004	0.95% to 1.90%	499,347		9.04 to   8.64		5,249,026	1.37%	4.57% to   3.56%
2003	0.95% to 1.90%	482,126		8.64 to   8.34		4,861,163	1.33%	19.24% to 18.10%
Dreyfus Balanced Fund, Inc.
2003	0.95% to 1.70%	197,843		9.04 to   8.79		1,978,349	1.29%	16.91% to 16.03%
Dreyfus Emerging Leaders Fund
2007	1.20% to 1.25%	1,006		11.27 to 11.23		11,325	0.00%	-12.01% to -12.05%
2006	0.95% to 1.25%	1,754		13.03 to 12.77		22,618	0.00%	6.05% to   5.73%
2005	0.95% to 1.25%	7,031		12.29 to 12.08		85,268	0.00%	8.14% to   7.81%
2004	0.95% to 1.25%	8,093		11.36 to 11.20		90,953	0.00%	13.15% to 12.80%
2003	0.95% to 1.25%	10,101		10.04 to   9.93		100,549	0.00%	38.16% to 37.74%

(Continued)

54

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Dreyfus Premier Balanced Opportunity Fund – Class Z
2007	0.95% to 1.60%	164,480	$	11.18 to 10.96	$	1,822,757	2.11%	4.11% to   3.42%
2006	0.95% to 1.60%	176,376		10.74 to 10.60		1,883,248	1.70%	8.49% to   7.78%
2005	0.95% to 1.60%	197,213		9.90 to   9.83		1,946,577	1.56%	-2.26% to  -2.90%
2004	0.95% to 1.70%	213,309		10.13 to 10.13		2,160,468	2.18%	1.29% to   1.27%	(a) (b)
Dreyfus S&P 500 Index Fund
2007	1.30%	472,197		33.98		16,047,578	1.49%	3.65%
2006	1.30%	560,996		32.79		18,393,389	1.35%	13.74%
2005	1.30%	624,278		28.83		17,995,137	1.28%	3.07%
2004	1.30%	688,019		27.97		19,242,268	1.50%	8.95%
2003	1.30%	712,646		25.67		18,293,906	1.19%	26.42%
Evergreen Equity Income Fund – Class I
2007	1.30%	33,367		28.46		949,513	1.56%	1.65%
2006	1.30%	35,468		27.99		992,926	2.30%	15.54%
2005	1.30%	44,806		24.23		1,085,677	1.56%	2.49%
2004	1.30%	46,314		23.64		1,094,936	1.99%	9.01%
2003	1.30%	39,990		21.69		867,245	2.28%	29.75%
Federated Equity Income Fund, Inc. – Class F Shares
2007	0.95% to 1.50%	13,221		10.47 to 10.05		136,821	2.30%	0.88% to   0.32%
2006	0.95% to 1.50%	17,923		10.38 to 10.02		183,970	2.34%	21.52% to 20.84%
2005	0.95% to 1.50%	11,009		8.54 to   8.29		92,867	1.84%	2.04% to   1.47%
2004	0.95% to 1.50%	12,280		8.37 to   8.17		101,722	1.90%	11.90% to 11.28%
2003	0.95% to 1.50%	14,167		7.48 to   7.34		105,332	2.08%	22.76% to 22.08%
Federated High Yield Trust
2007	0.95% to 1.90%	136,346		13.69 to 12.72		1,793,190	7.65%	2.17% to   1.18%
2006	0.95% to 1.90%	194,727		13.40 to 12.57		2,507,604	7.75%	10.16% to   9.10%
2005	0.95% to 1.90%	173,763		12.17 to 11.52		2,037,470	7.54%	1.46% to   0.49%
2004	0.95% to 1.85%	202,267		11.99 to 11.49		2,340,085	9.67%	10.57% to   9.57%
2003	0.95% to 1.90%	170,690		10.85 to 10.47		1,793,939	9.41%	21.65% to 20.48%
Federated Intermediate Corporate Bond Fund – Institutional Service Shares
2007	0.95% to 1.90%	57,926		13.97 to 13.03		797,935	4.98%	4.74% to   3.73%
2006	0.95% to 1.90%	54,941		13.34 to 12.56		725,837	4.22%	3.31% to   2.32%
2005	0.95% to 1.90%	66,370		12.91 to 12.27		850,195	5.00%	1.09% to   0.12%
2004	0.95% to 1.85%	68,364		12.77 to 12.29		866,946	3.94%	2.24% to   1.31%
2003	0.95% to 1.75%	22,611		12.49 to 12.17		280,879	5.02%	5.03% to   4.18%
Federated Investment Series Funds, Inc. – Bond Fund – Class F Shares
2007	0.95% to 2.05%	138,311		15.31 to 14.05		2,225,704	5.31%	4.05% to   2.89%
2006	0.95% to 2.05%	139,144		14.71 to 13.66		2,175,503	5.51%	4.82% to   3.66%
2005	0.95% to 2.05%	159,931		14.03 to 13.17		2,396,452	5.70%	0.92% to  -0.20%
2004	0.95% to 2.05%	162,608		13.91 to 13.20		2,414,432	6.06%	5.77% to   4.59%
2003	0.95% to 2.05%	160,643		13.15 to 12.62		2,259,338	6.43%	11.80% to 10.56%
Fidelity® Advisor Balanced Fund – Class A
2007	0.95% to 1.50%	42,101		12.63 to 12.10		523,426	1.78%	7.46% to   6.86%
2006	0.95% to 1.50%	48,763		11.75 to 11.32		565,605	1.78%	10.46% to   9.85%
2005	0.95% to 1.50%	62,215		10.64 to 10.31		654,878	1.93%	4.29% to   3.71%
2004	0.95% to 1.70%	77,870		10.20 to   9.84		788,131	2.36%	4.19% to   3.40%
2003	0.95% to 1.70%	84,334		9.79 to   9.52		820,544	2.29%	16.75% to 15.87%
Fidelity® Advisor Balanced Fund – Class T
2007	1.30%	76,411		18.26		1,395,238	1.56%	6.81%
2006	1.30%	73,978		17.10		1,264,717	1.74%	9.85%
2005	1.30%	73,624		15.56		1,145,848	1.67%	3.61%
2004	1.30%	85,032		15.02		1,277,305	2.10%	3.60%
2003	1.30%	83,221		14.50		1,206,630	2.04%	16.02%
Fidelity® Advisor Equity Growth Fund – Class A
2007	0.95% to 1.65%	157,844		9.02 to   8.56		1,401,468	0.00%	25.11% to 24.22%
2006	0.95% to 1.65%	125,406		7.21 to   6.89		894,569	0.00%	5.53% to   4.79%
2005	0.95% to 1.65%	135,715		6.83 to   6.58		919,599	0.00%	4.38% to   3.65%
2004	0.95% to 1.70%	196,942		6.54 to   6.33		1,280,886	0.00%	1.87% to   1.10%
2003	0.95% to 1.70%	176,059		6.42 to   6.27		1,126,698	0.00%	30.82% to 29.83%

(Continued)

55

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Fidelity® Advisor Equity Income Fund – Class A
2007	0.95% to 1.90%	269,954	$	16.06 to 14.91	$	4,262,609	1.12%	2.58% to   1.59%
2006	0.95% to 1.90%	286,632		15.65 to 14.68		4,428,184	1.09%	15.96% to 14.86%
2005	0.95% to 1.90%	313,369		13.50 to 12.78		4,189,354	0.95%	5.42% to   4.41%
2004	0.95% to 1.90%	315,936		12.80 to 12.24		4,012,980	0.93%	11.06% to   9.99%
2003	0.95% to 1.90%	287,775		11.53 to 11.13		3,300,260	1.05%	27.53% to 26.31%
Fidelity® Advisor Equity Income Fund – Class T
2007	1.30%	152,824		25.03		3,825,211	0.86%	2.00%
2006	1.30%	185,763		24.54		4,558,425	1.03%	15.32%
2005	1.30%	200,850		21.28		4,273,989	0.73%	4.80%
2004	1.30%	207,282		20.31		4,208,916	0.78%	10.44%
2003	1.30%	182,726		18.39		3,359,593	0.87%	26.74%
Fidelity® Advisor Growth Opportunities Fund – Class A
2007	0.95% to 1.90%	68,649		10.17 to   9.45		682,838	0.00%	21.89% to 20.72%
2006	0.95% to 1.90%	70,456		8.35 to   7.83		576,813	0.00%	4.03% to   3.04%
2005	0.95% to 1.90%	121,384		8.02 to   7.60		959,159	0.23%	7.60% to   6.57%
2004	0.95% to 1.90%	77,514		7.46 to   7.13		571,773	0.59%	6.07% to   5.05%
2003	0.95% to 1.90%	55,941		7.03 to   6.79		390,109	0.36%	28.16% to 26.94%
Fidelity® Advisor Growth Opportunities Fund – Class T
2007	1.30%	223,593		17.88		3,998,681	0.00%	21.26%
2006	1.30%	235,646		14.75		3,475,475	0.00%	3.53%
2005	1.30%	294,745		14.25		4,198,792	0.02%	7.03%
2004	1.30%	330,246		13.31		4,395,405	0.28%	5.56%
2003	1.30%	370,410		12.61		4,670,127	0.15%	27.58%
Fidelity® Advisor High Income Advantage Fund – Class T
2007	0.95% to 1.90%	76,043		16.38 to 15.21		1,442,388	6.40%	1.25% to   0.27%
2006	0.95% to 1.90%	118,500		16.18 to 15.17		2,245,182	6.45%	14.50% to 13.40%
2005	0.95% to 1.90%	153,451		14.13 to 13.38		2,568,910	6.55%	3.62% to   2.63%
2004	0.95% to 1.90%	198,711		13.64 to 13.04		3,230,752	8.41%	13.76% to 12.67%
2003	0.95% to 1.90%	269,387		11.99 to 11.57		3,879,384	12.40%	42.27% to 40.90%
Fidelity® Advisor Overseas Fund – Class A
2007	0.95% to 1.90%	1,459		14.21 to 13.25		20,229	1.36%	15.90% to 14.79%
2006	0.95% to 1.90%	1,467		12.26 to 11.55		17,610	0.17%	17.83% to 16.70%
2005	0.95% to 1.90%	19,671		10.41 to   9.89		202,627	0.83%	13.23% to 12.15%
2004	0.95% to 1.90%	30,133		9.19 to   8.82		274,810	0.14%	11.93% to 10.86%
2003	0.95% to 1.50%	77,409		8.21 to   8.06		631,056	1.45%	42.94% to 42.15%
Fidelity® Asset Manager™
2007	1.30%	96,918		23.44		2,271,357	3.09%	4.94%
2006	1.30%	114,369		22.33		2,554,173	2.83%	7.77%
2005	1.30%	155,360		20.72		3,219,428	2.23%	2.68%
2004	1.30%	193,635		20.18		3,907,903	2.46%	4.03%
2003	1.30%	231,668		19.40		4,494,463	2.56%	15.65%
Fidelity® Capital & Income Fund
2007	1.30%	4,872		80.73		393,334	5.86%	2.46%
2006	1.30%	5,826		78.80		459,068	6.17%	11.58%
2005	1.30%	6,767		70.62		477,891	5.89%	3.68%
2004	1.30%	7,899		68.11		538,029	7.26%	11.10%
2003	1.30%	11,090		61.31		679,880	8.32%	37.32%
Fidelity® Equity-Income Fund
2007	1.30%	78,213		119.05		9,310,928	1.73%	0.07%
2006	1.30%	93,962		118.96		11,177,642	1.61%	18.25%
2005	1.30%	104,705		100.60		10,532,987	1.56%	4.36%
2004	1.30%	112,880		96.39		10,880,437	1.56%	9.84%
2003	1.30%	119,162		87.75		10,456,879	1.52%	28.27%
Fidelity® Magellan® Fund
2007	1.30%	409,548		36.02		14,750,208	0.43%	17.27%
2006	1.30%	510,739		30.71		15,685,270	0.49%	5.83%
2005	1.30%	636,228		29.02		18,463,355	0.89%	5.04%
2004	1.30%	737,378		27.63		20,371,875	1.18%	6.10%
2003	1.30%	837,429		26.04		21,806,684	0.82%	23.20%

(Continued)

56

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Fidelity® Puritan® Fund
2007	1.30%	239,711	$	34.81	$	8,344,053	2.83%	4.79%
2006	1.30%	286,741		33.22		9,525,181	2.95%	13.29%
2005	1.30%	333,373		29.32		9,775,061	2.54%	3.31%
2004	1.30%	379,994		28.38		10,784,970	2.39%	7.85%
2003	1.30%	407,038		26.31		10,711,174	2.57%	20.61%
Fidelity® VIP – High Income Portfolio – Initial Class
2007	1.30%	872		26.64		23,228	8.43%	1.44%
2006	1.30%	873		26.26		22,924	7.82%	9.79%
2005	1.30%	874		23.92		20,903	14.72%	1.37%
2004	1.30%	875		23.59		20,644	12.36%	8.17%
2003	1.30%	2,909		21.81		63,450	7.17%	25.61%
Fidelity® VIP – Overseas Portfolio – Service Class 2 R
2007	0.95% to 1.65%	206,096		17.60 to 17.15		3,591,592	3.02%	15.94% to 15.12%
2006	0.95% to 1.60%	188,000		15.18 to 14.92		2,832,836	0.53%	16.70% to 15.93%
2005	0.95% to 1.60%	68,873		13.01 to 12.87		891,815	0.27%	17.62% to 16.85%
2004	0.95% to 1.60%	46,477		11.06 to 11.01		513,365	0.00%	10.63% to 10.14%	(a) (b)
Franklin Mutual Series Fund, Inc. – Mutual Shares Fund – Class A
2007	0.95% to 1.90%	515,438		18.59 to 17.27		9,963,434	2.55%	1.99% to   1.00%
2006	0.95% to 1.90%	511,413		18.23 to 17.10		9,777,596	1.70%	16.86% to 15.74%
2005	0.95% to 1.90%	517,613		15.60 to 14.77		8,515,920	1.45%	8.94%  to   7.90%
2004	0.95% to 1.90%	476,078		14.32 to 13.69		7,233,403	1.58%	12.42% to 11.34%
2003	0.95% to 1.90%	436,986		12.74 to 12.30		5,924,590	1.40%	24.98% to 23.79%
Franklin Small-Mid Cap Growth Fund I – Class A
2007	0.95% to 1.90%	216,319		9.24 to 8.58		1,969,995	0.00%	10.60% to   9.54%
2006	0.95% to 1.90%	289,296		8.35 to 7.83		2,392,681	0.00%	6.50% to   5.48%
2005	0.95% to 1.90%	319,814		7.84 to 7.42		2,489,754	0.10%	9.50% to   8.45%
2004	0.95% to 1.90%	435,237		7.16 to 6.84		3,094,272	0.00%	11.96% to 10.89%
2003	0.95% to 1.90%	289,019		6.39 to 6.17		1,840,506	0.00%	36.37% to 35.06%
Franklin Templeton VIP – Foreign Securities Fund – Class 3
2007	0.95% to 1.65%	266,843		17.34 to 16.89		4,573,075	2.24%	14.34% to 13.53%
2006	0.95% to 1.65%	280,958		15.16 to 14.88		4,224,492	1.30%	20.31% to 19.46%
2005	0.95% to 1.65%	233,560		12.60 to 12.45		2,927,966	1.29%	9.09% to   8.32%
2004	0.95% to 1.65%	206,884		11.55 to 11.50		2,385,079	0.49%	15.52% to 14.98%	(a) (b)
Franklin Value Investors Trust – Balance Sheet Investment Fund – Class A
2007	0.95% to 1.85%	204,076		22.42 to 20.99		4,507,348	1.04%	-4.28% to  -5.16%
2006	0.95% to 1.85%	200,922		23.43 to 22.13		4,641,285	1.36%	15.25% to 14.21%
2005	0.95% to 1.85%	175,926		20.33 to 19.38		3,530,946	0.88%	9.85% to   8.86%
2004	0.95% to 1.85%	121,505		18.50 to 17.80		2,225,352	0.89%	24.12% to 22.99%
2003	0.95% to 1.85%	77,941		14.91 to 14.47		1,154,090	0.48%	28.35% to 27.18%
Janus Adviser Series – Balanced Fund – Class S
2007	0.95% to 1.65%	87,699		13.13 to 12.47		1,134,521	2.43%	8.80% to   8.03%
2006	0.95% to 1.65%	106,188		12.07 to 11.54		1,265,873	1.42%	9.35% to   8.58%
2005	0.95% to 1.70%	129,865		11.04 to 10.60		1,417,997	1.44%	6.65% to   5.84%
2004	0.95% to 1.90%	127,676		10.35 to 9.93		1,308,970	1.53%	7.39% to   6.36%
2003	0.95% to 1.90%	148,887		9.64 to 9.34		1,427,611	1.93%	12.92% to 11.84%
Janus Adviser Series – International Growth Fund – Class S
2007	1.20% to 1.90%	4,431		18.28 to 17.37		80,714	2.47%	24.62% to 23.74%
2006	1.20% to 1.90%	4,626		14.67 to 14.03		67,660	0.83%	42.90% to 41.89%
2005	1.20% to 1.90%	4,763		10.27 to 9.89		48,758	0.57%	30.15% to 29.24%
2004	1.20% to 1.90%	6,398		7.89 to 7.65		50,327	0.08%	18.41% to 17.58%
2003	1.20% to 1.50%	109,672		6.66 to 6.60		730,459	0.97%	33.16% to 32.76%
Janus Adviser Series – Worldwide Fund – Class S
2007	0.95% to 1.90%	59,906		8.39 to 7.82		493,594	0.17%	7.88% to   6.84%
2006	0.95% to 1.90%	70,080		7.78 to 7.32		536,746	1.72%	15.82% to 14.72%
2005	0.95% to 1.90%	92,412		6.72 to 6.38		612,548	0.68%	5.06% to   4.06%
2004	0.95% to 1.90%	132,162		6.39 to 6.14		835,980	0.28%	3.74% to   2.74%
2003	0.95% to 1.90%	212,407		6.16 to 5.97		1,299,031	0.63%	21.67% to 20.50%

(Continued)

57

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Janus Equity Funds – Janus Fund
2007	0.95% to 2.05%	442,645	$	7.30 to 6.70	$	7,474,855	0.50%	14.12% to 12.85%
2006	0.95% to 2.05%	516,839		6.40 to 5.94		7,573,724	0.33%	9.54% to   8.33%
2005	0.95% to 2.05%	587,461		5.84 to 5.48		7,869,103	0.06%	2.99% to   1.85%
2004	0.95% to 2.05%	710,079		5.67 to 5.38		9,546,393	0.00%	3.69% to   2.54%
2003	0.95% to 2.05%	840,546		5.47 to 5.25		11,013,476	0.00%	30.46% to 29.01%
Janus Equity Funds – Janus Twenty Fund
2007	0.95% to 1.90%	763,202		8.98 to 8.34		26,571,915	0.21%	34.64% to 33.35%
2006	0.95% to 1.90%	878,681		6.67 to 6.25		22,841,154	0.57%	11.23% to 10.17%
2005	0.95% to 1.90%	1,016,777		5.99 to 5.67		23,689,667	0.20%	8.38% to   7.35%
2004	0.95% to 1.90%	1,174,936		5.53 to 5.29		24,875,542	0.03%	22.72% to 21.54%
2003	0.95% to 1.90%	1,367,638		4.51 to 4.35		22,785,027	0.51%	24.12% to 22.93%
Janus Equity Funds – Janus Worldwide Fund
2007	0.95% to 1.45%	284,148		7.51 to 7.22		5,184,712	0.50%	8.19% to   7.64%
2006	0.95% to 1.50%	340,387		6.94 to 6.69		5,786,091	1.20%	16.78% to 16.14%
2005	0.95% to 1.50%	435,577		5.94 to 5.76		6,381,844	1.03%	4.84% to   4.26%
2004	0.95% to 1.50%	552,324		5.67 to 5.52		7,768,920	0.65%	4.53% to   3.95%
2003	0.95% to 1.50%	745,134		5.42 to 5.31		10,109,603	0.94%	23.06% to 22.37%
Lazard Small Cap Portfolio – Open Shares
2007	0.95% to 1.90%	118,811		17.58 to 16.33		2,240,523	0.00%	-7.49% to  -8.39%
2006	0.95% to 1.90%	139,652		19.00 to 17.82		2,859,414	0.00%	15.66% to 14.56%
2005	0.95% to 1.90%	164,638		16.43 to 15.56		2,918,919	0.00%	2.94% to   1.96%
2004	0.95% to 1.90%	194,132		15.96 to 15.26		3,342,506	0.02%	13.81% to 12.72%
2003	0.95% to 1.90%	168,554		14.02 to 13.54		2,558,176	0.00%	37.25% to 35.93%
Lehman Brothers Short Duration Bond Fund – Investor Class
2007	1.30%	69,314		15.28		1,058,965	5.48%	3.98%
2006	1.30%	66,778		14.69		981,208	4.61%	2.83%
2005	1.30%	72,068		14.29		1,029,836	3.86%	0.25%
2004	1.30%	90,347		14.25		1,287,763	3.60%	-0.39%
2003	1.30%	97,423		14.31		1,394,009	3.71%	1.20%
MFS® Strategic Income Fund – Class A
2007	1.30%	62,675		13.99		876,658	5.73%	2.23%
2006	1.30%	66,662		13.68		912,120	6.00%	5.44%
2005	1.30%	78,799		12.98		1,022,538	6.04%	0.76%
2004	1.30%	69,176		12.88		890,884	5.95%	6.91%
2003	1.30%	61,538		12.05		741,264	6.42%	12.30%
Nationwide Bond Fund – Class D
2007	0.95% to 2.05%	34,015		15.17 to 13.93		1,447,779	4.82%	5.09% to 3.92%
2006	0.95% to 2.05%	22,512		14.44 to 13.40		321,978	4.76%	3.41% to 2.26%
2005	0.95% to 2.05%	30,706		13.96 to 13.10		425,554	4.44%	2.15% to 1.02%
2004	0.95% to 2.05%	31,530		13.67 to 12.97		428,495	4.63%	3.83% to 2.68%
2003	0.95% to 2.05%	35,896		13.16 to 12.63		470,273	5.21%	5.38% to 4.21%
Tax qualified
2006	1.30%	24,457		59.17		1,447,190	4.76%	3.04%
2005	1.30%	28,025		57.42		1,609,330	4.44%	1.79%
2004	1.30%	32,581		56.42		1,838,084	4.63%	3.47%
2003	1.30%	36,727		54.53		2,002,584	5.21%	5.01%
Non-tax qualified
2006	1.30%	72		58.92		4,242	4.76%	3.04%
2005	1.30%	72		57.18		4,117	4.44%	1.79%
2004	1.30%	72		56.17		4,045	4.63%	3.47%
2003	1.30%	72		54.29		3,909	5.21%	5.01%
Nationwide Bond Index Fund – Class A
2007	0.95% to 1.65%	23,942		13.86 to 13.16		324,184	4.52%	5.30% to 4.55%
2006	0.95% to 1.65%	22,784		13.16 to 12.59		294,326	4.03%	2.76% to 2.04%
2005	0.95% to 1.65%	21,251		12.81 to 12.34		268,493	3.76%	0.90% to 0.19%
2004	0.95% to 1.65%	20,255		12.69 to 12.32		254,381	3.62%	2.75% to 2.02%
2003	0.95% to 1.65%	14,144		12.35 to 12.07		173,477	4.05%	2.20% to 1.47%

(Continued)

58

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value	Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Nationwide Fund – Class D
2007	0.95% to 1.65%	61,692	$12.00 to 11.37	$	4,648,533	1.05%	6.88% to   6.12%
2006	0.95% to 1.65%	28,674	11.23 to 10.71		316,831	1.08%	12.77% to 11.97%
2005	0.95% to 1.65%	39,655	9.96 to   9.57		389,996	0.82%	6.34% to   5.60%
2004	0.95% to 1.65%	39,211	9.36 to   9.06		363,697	1.17%	8.73% to   7.96%
2003	0.95% to 1.65%	37,314	8.61 to   8.39		319,313	0.81%	25.89% to 25.00%
Tax qualified
2006	1.30%	35,190	137.07		4,823,587	1.08%	12.37%
2005	1.30%	42,114	121.99		5,137,308	0.82%	5.97%
2004	1.30%	48,114	115.11		5,538,559	1.17%	8.35%
2003	1.30%	50,848	106.25		5,402,439	0.81%	25.45%
Non-tax qualified
2006	1.30%	55	142.78		7,853	1.08%	12.37%
2005	1.30%	56	127.06		7,115	0.82%	5.97%
2004	1.30%	56	119.90		6,715	1.17%	8.35%
2003	1.30%	56	110.67		6,197	0.81%	25.45%
Nationwide Government Bond Fund – Class D
2007	0.95% to 1.90%	234,956	14.93 to 13.87		3,709,572	4.19%	6.71% to  5.68%
2006	0.95% to 1.90%	281,627	13.99 to 13.12		4,181,154	4.15%	2.87% to  1.89%
2005	0.95% to 1.90%	332,211	13.60 to 12.88		4,825,019	3.93%	1.80% to  0.83%
2004	0.95% to 1.90%	423,678	13.36 to 12.77		6,055,314	3.76%	2.44% to  1.46%
2003	0.95% to 1.90%	473,517	13.04 to 12.59		6,686,754	4.09%	0.93% to -0.04%
Nationwide Growth Fund – Class A
2007	0.95% to 1.45%	38,025	14.16 to 13.88		532,049	0.24%	18.14% to 17.54%
2006	0.95% to 1.45%	35,920	11.99 to 11.81		426,705	0.00%	5.00% to   4.47%
2005	0.95% to 1.45%	59,143	11.42 to 11.30		671,279	0.04%	5.11% to   4.58%
2004	0.95% to 1.45%	49,930	10.86 to 10.81		540,838	0.14%	6.77% to   6.23%
2003	0.95% to 1.45%	33,909	10.17 to 10.17		344,961	0.00%	1.74% to   1.72%	(a)
Nationwide Growth Fund – Class D
2007	0.95% to 1.45%	18,612	6.91 to   6.65		713,883	0.27%	18.46% to 17.86%
2006	0.95% to 1.45%	11,189	5.84 to   5.64		64,792	0.00%	5.30% to   4.77%
2005	0.95% to 1.45%	24,246	5.54 to   5.39		133,511	0.12%	5.54% to   5.01%
2004	0.95% to 1.45%	31,341	5.25 to   5.13		163,434	0.19%	7.09% to   6.54%
2003	0.95% to 1.45%	38,281	4.90 to   4.81		186,771	0.04%	31.76% to 31.10%
Tax qualified
2006	1.30%	11,313	70.50		797,599	0.00%	4.93%
2005	1.30%	15,445	67.19		1,037,727	0.12%	5.17%
2004	1.30%	18,003	63.88		1,150,114	0.19%	6.71%
2003	1.30%	21,965	59.87		1,315,025	0.04%	31.30%
Non-tax qualified
2006	1.30%	115	74.44		8,561	0.00%	4.93%
2005	1.30%	115	70.94		8,158	0.12%	5.17%
2004	1.30%	116	67.45		7,825	0.19%	6.71%
2003	1.30%	116	63.21		7,333	0.04%	31.30%
Nationwide International Index Fund – Class A
2007	1.10% to 1.90%	1,690	14.59 to 13.75		24,400	2.43%	8.94% to   8.05%
2006	1.10% to 1.90%	1,781	13.39 to 12.73		23,622	2.31%	24.26% to 23.25%
2005	1.10% to 1.90%	1,811	10.78 to 10.33		19,359	1.54%	12.27% to 11.37%
2004	1.10% to 1.90%	4,530	9.60 to   9.27		43,218	0.18%	17.83% to 16.87%
2003	1.10% to 1.90%	86,263	8.15 to   7.94		700,429	1.07%	35.53% to 34.43%
Nationwide Investor Destinations Aggressive Fund – Service Class
2007	0.95% to 1.65%	167,063	12.81 to 12.17		2,107,296	2.98%	4.88% to   4.13%
2006	0.95% to 1.65%	149,364	12.22 to 11.69		1,800,016	1.14%	15.72% to 14.90%
2005	0.95% to 1.65%	124,879	10.56 to 10.17		1,304,515	2.02%	6.82% to   6.07%
2004	0.95% to 1.60%	76,169	9.88 to   9.61		745,692	1.77%	12.92% to 12.18%
2003	0.95% to 1.50%	47,094	8.75 to   8.60		409,355	1.12%	30.44% to 29.72%
Nationwide Investor Destinations Conservative Fund – Service Class
2007	0.95% to 1.55%	181,530	12.54 to 12.00		2,260,989	3.87%	4.34% to   3.70%
2006	0.95% to 1.55%	171,840	12.02 to 11.57		2,043,840	2.97%	5.11% to   4.47%
2005	0.95% to 1.55%	144,727	11.44 to 11.08		1,640,306	2.64%	2.22% to   1.60%
2004	0.95% to 1.55%	124,360	11.19 to 10.90		1,381,387	2.24%	3.78% to   3.15%
2003	0.95% to 1.50%	73,292	10.78 to 10.59		787,586	2.03%	6.63% to   6.04%

(Continued)

59

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Nationwide Investor Destinations Moderate Fund – Service Class
2007	0.95% to 1.90%	629,646	$	12.74 to 11.88	$	7,897,722	3.60%	4.55% to   3.55%
2006	0.95% to 1.90%	778,859		12.18 to 11.47		9,384,597	1.88%	10.33% to   9.28%
2005	0.95% to 1.90%	685,861		11.04 to 10.50		7,507,153	2.55%	4.40% to   3.41%
2004	0.95% to 1.75%	408,308		10.58 to 10.22		4,281,135	2.10%	8.38% to   7.50%
2003	0.95% to 1.75%	109,099		9.76 to   9.51		1,057,085	1.90%	18.57% to 17.61%
Nationwide Investor Destinations Moderately Aggressive Fund – Service Class
2007	0.95% to 1.90%	373,509		12.91 to 12.04		4,736,061	3.19%	5.16% to   4.15%
2006	0.95% to 1.90%	317,275		12.28 to 11.56		3,833,765	1.44%	13.36% to 12.27%
2005	0.95% to 1.90%	280,453		10.83 to 10.30		2,998,826	2.31%	6.02% to   5.01%
2004	0.95% to 1.85%	156,228		10.21 to   9.83		1,578,276	1.46%	11.03% to 10.02%
2003	0.95% to 1.50%	155,282		9.20 to   9.03		1,418,116	1.19%	25.11% to 24.42%
Nationwide Investor Destinations Moderately Conservative Fund – Service Class
2007	0.95% to 1.65%	197,681		12.79 to 12.15		2,496,673	3.58%	4.78% to   4.03%
2006	0.95% to 1.65%	209,987		12.21 to 11.68		2,535,819	2.46%	7.47% to   6.71%
2005	0.95% to 1.65%	169,351		11.36 to 10.94		1,906,350	2.75%	3.41% to   2.69%
2004	0.95% to 1.65%	112,334		10.98 to 10.66		1,227,135	2.30%	6.04% to   5.30%
2003	0.95% to 1.50%	80,598		10.36 to 10.17		831,220	1.27%	12.45% to 11.83%
Nationwide Large Cap Value Fund – Class A
2007	0.95% to 1.65%	163,103		16.26 to 15.40		2,562,249	1.00%	-3.44% to  -4.13%
2006	0.95% to 1.65%	189,451		16.84 to 16.06		3,086,672	1.12%	19.89% to 19.05%
2005	0.95% to 1.65%	149,960		13.99 to 13.44		2,032,432	1.06%	6.26% to   5.51%
2004	0.95% to 1.65%	117,301		13.16 to 12.74		1,500,937	1.05%	14.78% to 13.97%
2003	0.95% to 1.90%	99,480		11.47 to 11.07		1,115,437	1.03%	26.81% to 25.60%
Nationwide Mid Cap Market Index Fund – Class A
2007	0.95% to 2.10%	101,347		15.54 to 14.28		1,554,704	1.21%	6.22% to   4.98%
2006	0.95% to 2.10%	114,194		14.63 to 13.61		1,653,775	1.27%	8.54% to   7.28%
2005	0.95% to 1.90%	73,263		13.48 to 12.82		977,790	0.93%	10.76% to   9.71%
2004	0.95% to 1.90%	64,225		12.17 to 11.69		775,258	0.42%	14.48% to 13.39%
2003	0.95% to 1.90%	40,923		10.63 to 10.31		433,003	0.39%	33.11% to 31.83%
Nationwide Money Market Fund – Prime Shares
2007	1.30%	441,241		31.45		10,974,601	4.69%	3.48%
2006	1.30%	441,699		23.98		10,592,824	4.53%	3.20%
2005	1.30%	387,808		23.24		9,011,956	2.89%	1.38%
2004	1.30%	412,803		22.92		9,461,896	0.86%	-0.48%
2003	1.30%	464,749		23.03		10,703,514	0.65%	-0.69%
Tax qualified
2006	1.30%	3,617		30.20		109,226	4.53%	3.20%
2005	1.30%	4,426		29.26		129,511	2.89%	1.38%
2004	1.30%	5,046		28.86		145,638	0.86%	-0.48%
2003	1.30%	7,279		29.00		211,093	0.65%	-0.69%
Non-tax qualified
2006	1.30%	820		30.39		24,919	4.53%	3.20%
2005	1.30%	822		29.45		24,205	2.89%	1.38%
2004	1.30%	825		29.04		23,962	0.86%	-0.48%
2003	1.30%	827		29.18		24,135	0.65%	-0.69%
Nationwide Money Market Fund – Service Class
2007	0.95% to 1.90%	716,972		11.45 to 10.64		8,125,799	4.38%	3.75% to   2.75%
2006	0.95% to 1.90%	640,190		11.04 to 10.35		6,997,751	4.18%	3.39% to   2.40%
2005	0.95% to 2.25%	449,909		10.68 to   9.59		4,750,529	3.77%	1.60% to   0.27%
2004	0.95% to 2.25%	260,132		10.51 to   9.57		2,706,289	0.46%	-0.28% to  -1.59%
2003	0.95% to 2.25%	1,054,174		10.54 to   9.72		11,007,017	0.53%	-0.45% to  -1.76%
Nationwide S&P 500 Index Fund – Service Class
2007	0.95% to 2.05%	371,525		10.08 to   9.25		3,878,814	1.41%	3.76% to   2.60%
2006	0.95% to 2.25%	429,809		9.72   to 10.48		4,275,167	1.34%	14.06% to 12.57%
2005	0.95% to 2.25%	460,212		8.52 to   9.31		4,044,529	1.24%	3.26% to   1.90%
2004	0.95% to 2.25%	427,342		8.25 to   9.14		3,652,845	1.28%	9.25% to   7.81%
2003	0.95% to 2.25%	423,786		7.55 to   8.48		3,324,284	1.02%	26.57% to 24.92%

(Continued)

60

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Nationwide Small Cap Fund – Class A
2007	0.95% to 1.65%	158,170	$	20.95 to 19.84	$	3,800,681	0.62%	-6.94% to  -7.60%
2006	0.95% to 1.65%	216,630		22.51 to 21.47		5,654,710	0.19%	27.94% to 27.03%
2005	0.95% to 1.65%	229,634		17.59 to 16.90		4,645,571	0.00%	21.35% to 20.50%
2004	0.95% to 1.65%	231,298		14.50 to 14.02		3,913,587	0.00%	24.57% to 23.69%
2003	0.95% to 1.65%	153,649		11.64 to 11.34		2,125,948	0.00%	46.61% to 45.57%
Nationwide Small Cap Index Fund – Class A
2007	0.95% to 1.65%	70,511		14.56 to 13.83		1,011,989	1.25%	-3.35% to  -4.04%
2006	0.95% to 1.65%	97,827		15.06 to 14.41		1,458,075	1.37%	16.09% to 15.27%
2005	0.95% to 1.65%	61,125		12.98 to 12.50		785,085	0.80%	3.35% to   2.62%
2004	0.95% to 1.65%	65,067		12.56 to 12.18		811,847	0.70%	16.64% to 15.82%
2003	0.95% to 1.65%	27,945		10.76 to 10.52		298,888	0.49%	44.06% to 43.05%
Nationwide Value Opportunities Fund – Class A
2007	0.95% to 1.60%	14,042		15.92 to 15.18		220,907	0.00%	-8.52% to  -9.12%
2006	0.95% to 1.60%	17,052		17.41 to 16.71		293,641	0.00%	16.73% to 15.96%
2005	0.95% to 1.60%	21,774		14.91 to 14.41		321,355	0.12%	6.87% to   6.17%
2004	0.95% to 1.60%	45,590		13.95 to 13.57		632,586	0.07%	12.33% to 11.59%
2003	0.95% to 1.60%	15,946		12.42 to 12.16		196,853	0.07%	35.40% to 34.51%
Nationwide VIT – Investor Destinations Aggressive Fund – Class II
2007	1.30%	88,936		14.33		1,274,798	1.92%	4.57%
2006	1.30%	71,501		13.71		980,064	2.08%	15.35%
2005	1.30%	23,675		11.88		281,322	2.43%	6.53%
2004	1.30%	8,041		11.15		89,690	2.03%	11.54%	(a) (b)
Nationwide VIT – Investor Destinations Conservative Fund – Class II
2007	1.30%	9,730		11.49		111,797	3.81%	4.00%
2006	1.30%	4,408		11.05		48,698	3.09%	4.79%
2005	1.30%	2,998		10.54		31,608	2.10%	1.97%
2004	1.30%	30		10.34		310	3.23%	3.39%	(a) (b)
Nationwide VIT – Investor Destinations Moderate Fund – Class II
2007	1.30%	117,113		12.83		1,502,660	2.86%	4.28%
2006	1.30%	91,583		12.30		1,126,874	2.61%	9.91%
2005	1.30%	81,006		11.20		906,866	2.44%	3.98%
2004	1.30%	47,710		10.77		513,679	2.23%	7.67%	(a) (b)
Nationwide VIT – Investor Destinations Moderately Aggressive Fund – Class II
2007	1.30%	154,475		13.77		2,126,683	2.16%	4.76%
2006	1.30%	172,773		13.14		2,270,454	2.35%	13.06%
2005	1.30%	83,390		11.62		969,300	2.06%	5.68%
2004	1.30%	48,890		11.00		537,718	1.75%	9.99%	(a) (b)
Nationwide VIT – Investor Destinations Moderately Conservative Fund – Class II
2007	1.30%	18,241		12.18		222,229	3.27%	4.48%
2006	1.30%	13,164		11.66		153,505	2.63%	7.02%
2005	1.30%	7,929		10.90		86,397	2.76%	3.13%
2004	1.30%	1,048		10.57		11,073	1.90%	5.66%	(a) (b)
Nationwide VIT – J.P. Morgan Balanced Fund – Class I
2007	0.95% to 1.50%	16,842		12.43 to 12.00		205,864	1.98%	3.63% to   3.05%
2006	0.95% to 1.50%	20,618		12.00 to 11.64		243,931	2.29%	11.19% to 10.57%
2005	0.95% to 1.50%	21,649		10.79 to 10.53		231,136	2.18%	1.57% to   1.01%
2004	0.95% to 1.50%	13,825		10.62 to 10.42		145,621	2.23%	7.46% to   6.86%
2003	0.95% to 1.50%	10,009		9.89 to   9.75		98,367	1.58%	17.29% to 16.64%
Neuberger Berman Genesis Fund – Trust Class
2007	0.95% to 1.90%	569,440		28.63 to 26.59		16,441,025	0.14%	20.64% to 19.48%
2006	0.95% to 1.90%	681,574		23.73 to 22.25		16,358,793	1.09%	6.24% to   5.22%
2005	0.95% to 1.90%	807,488		22.34 to 21.15		18,319,479	0.00%	15.20% to 14.10%
2004	0.95% to 1.90%	738,855		19.39 to 18.54		14,615,405	0.00%	17.55% to 16.42%
2003	0.95% to 1.90%	606,006		16.49 to 15.92		10,220,042	0.00%	30.40% to 29.16%
Neuberger Berman Guardian Fund – Investor Class
2007	1.30%	99,765		24.63		2,457,404	0.61%	6.21%
2006	1.30%	123,393		23.19		2,861,814	0.33%	12.01%
2005	1.30%	148,320		20.71		3,071,220	0.65%	7.03%
2004	1.30%	167,914		19.35		3,248,495	0.29%	14.55%
2003	1.30%	193,335		16.89		3,265,121	0.29%	33.38%

(Continued)

61

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Neuberger Berman Guardian Fund – Trust Class
2007	0.95% to 1.45%	22,233	$	13.15 to 12.65	$	287,874	0.72%	6.36% to   5.82%
2006	0.95% to 1.50%	17,972		12.36 to 11.91		218,524	0.20%	12.24% to 11.62%
2005	0.95% to 1.50%	27,967		11.01 to 10.67		303,702	0.48%	7.23% to   6.64%
2004	0.95% to 1.50%	39,609		10.27 to 10.01		402,509	0.22%	14.83% to 14.20%
2003	0.95% to 1.55%	39,493		8.95 to   8.75		350,024	0.20%	33.73% to 32.92%
Neuberger Berman Partners Fund – Investor Class
2007	1.30%	142,633		41.72		5,950,033	0.32%	8.66%
2006	1.30%	174,025		38.39		6,681,163	0.60%	11.73%
2005	1.30%	208,718		34.36		7,172,124	1.01%	16.46%
2004	1.30%	185,415		29.51		5,470,922	0.70%	17.66%
2003	1.30%	201,663		25.08		5,057,026	0.03%	34.11%
Neuberger Berman Partners Fund – Trust Class
2007	0.95% to 1.90%	27,172		16.31 to 15.15		438,739	0.25%	8.79% to   7.74%
2006	0.95% to 1.90%	42,201		14.99 to 14.06		621,923	0.45%	11.97% to 10.90%
2005	0.95% to 1.90%	43,693		13.39 to 12.68		576,139	0.51%	16.69% to 15.58%
2004	0.95% to 1.90%	31,510		11.47 to 10.97		358,723	0.66%	17.89% to 16.76%
2003	0.95% to 1.90%	23,117		9.73 to   9.39		223,623	0.00%	34.37% to 33.09%
Neuberger Berman Socially Responsive Fund – Trust Class
2007	0.95% to 1.50%	129,136		14.48 to 14.19		1,861,389	0.54%	6.29% to   5.69%
2006	0.95% to 1.50%	120,462		13.62 to 13.42		1,634,820	0.10%	13.13% to 12.51%
2005	0.95% to 1.45%	43,761		12.04 to 11.94		524,937	0.63%	6.43% to   5.90%
2004	0.95% to 1.40%	7,845		11.31 to 11.28		88,574	0.02%	13.13% to 12.79%	(a) (b)
Oppenheimer Capital Appreciation Fund A
2007	0.95% to 1.80%	245,700		9.67 to   9.09		2,345,097	0.00%	12.68% to 11.71%
2006	0.95% to 1.80%	260,714		8.58 to   8.13		2,214,629	0.00%	6.49% to   5.57%
2005	0.95% to 1.80%	360,986		8.06 to   7.71		2,888,178	0.61%	3.70% to   2.82%
2004	0.95% to 1.80%	327,920		7.77 to   7.49		2,533,507	0.00%	5.45% to   4.54%
2003	0.95% to 1.80%	213,208		7.37 to   7.17		1,565,653	0.00%	28.23% to 27.13%
Oppenheimer Champion Income Fund A
2007	0.95% to 1.45%	19,055		13.24 to 12.93		249,351	7.43%	-1.06% to -1.56%
2006	0.95% to 1.45%	17,997		13.38 to 13.13		238,841	5.62%	8.16% to   7.61%
2005	0.95% to 1.45%	23,082		12.37 to 12.20		284,436	6.20%	1.68% to   1.17%
2004	0.95% to 1.45%	12,480		12.16 to 12.06		151,387	7.34%	8.17% to   7.63%
2003	0.95% to 1.45%	6,563		11.24 to 11.21		73,749	5.79%	12.45% to 12.06%	(a) (b)
Oppenheimer Global Fund A
2007	0.95% to 1.90%	304,168		14.65 to 13.61		10,412,275	1.01%	4.95% to   3.94%
2006	0.95% to 1.90%	393,370		13.96 to 13.09		12,944,367	0.65%	16.27% to 15.15%
2005	0.95% to 1.90%	526,968		12.01 to 11.37		14,749,212	0.60%	12.75% to 11.68%
2004	0.95% to 1.90%	625,115		10.65 to 10.18		16,086,858	0.54%	17.54% to 16.42%
2003	0.95% to 2.25%	799,413		9.06 to   9.80		17,127,357	0.80%	41.72% to 39.86%
Oppenheimer Strategic Income Fund A
2007	0.95% to 1.60%	51,188		16.47 to 15.70		828,973	6.73%	8.18% to   7.47%
2006	0.95% to 1.60%	39,653		15.23 to 14.61		595,446	4.78%	6.66% to   5.96%
2005	0.95% to 1.60%	43,760		14.27 to 13.79		617,703	7.58%	3.17% to   2.49%
2004	0.95% to 1.45%	27,596		13.84 to 13.54		378,215	7.32%	8.58% to   8.03%
2003	0.95% to 1.45%	18,797		12.74 to 12.54		237,385	4.89%	18.46% to 17.86%
Oppenheimer VAF – Global Securities Fund – Class 4
2007	0.95% to 1.90%	528,809		15.96 to 15.41		8,361,948	1.15%	5.05% to   4.03%
2006	0.95% to 2.25%	548,551		15.20 to 14.67		8,277,875	0.81%	16.29% to 14.77%
2005	0.95% to 2.25%	436,757		13.07 to 12.79		5,682,456	0.76%	12.97% to 11.49%
2004	0.95% to 2.25%	298,367		11.57 to 11.47		3,445,679	0.00%	15.69% to 14.68%	(a) (b)
Phoenix Balanced Fund – Class A
2007	1.30%	40,077		22.66		908,282	2.31%	4.49%
2006	1.30%	43,231		21.69		937,643	2.24%	11.27%
2005	1.30%	57,925		19.49		1,129,059	1.94%	0.16%
2004	1.30%	58,000		19.46		1,128,718	2.21%	5.77%
2003	1.30%	53,906		18.40		991,782	2.02%	17.06%

(Continued)

62

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
PIMCO Total Return Fund – Class A
2007	0.95% to 1.80%	252,154	$	14.75 to 13.86	$	3,667,101	4.54%	7.53% to    6.61%
2006	0.95% to 2.25%	274,095		13.72 to 12.03		3,710,444	4.15%	2.53% to    1.18%
2005	0.95% to 2.25%	316,198		13.38 to 11.89		4,186,754	3.18%	1.43% to    0.10%
2004	0.95% to 2.25%	294,143		13.19 to 11.87		3,848,466	2.08%	3.65% to    2.29%
2003	0.95% to 2.25%	203,571		12.73 to 11.61		2,573,697	2.94%	4.07% to    2.70%
Putnam International Equity Fund – Class A
2007	1.45% to 1.50%	265		21.69 to 21.64		5,749	2.77%	6.82% to    6.77%
2006	1.45% to 1.50%	265		20.31 to 20.27		5,382	2.32%	26.38% to  26.32%
2005	1.45% to 1.50%	265		16.07 to 16.05		4,258	2.08%	10.95% to  10.89%
2004	1.45% to 1.50%	265		14.48 to 14.47		3,838	0.03%	14.55% to  14.49%
2003	1.20% to 1.50%	24,231		12.66 to 12.64		306,866	3.32%	26.65% to  26.39%	(a) (b)
Putnam Voyager Fund – Class A
2007	0.95% to 1.50%	5,061		13.88 to 13.52		69,503	0.00%	4.29% to    3.71%
2006	1.10% to 1.50%	4,722		13.23 to 13.04		62,246	0.00%	4.08% to    3.66%
2005	0.95% to 1.50%	12,850		12.77 to 12.58		163,516	0.86%	4.50% to    3.92%
2004	0.95% to 1.20%	8,723		12.22 to 12.17		106,490	0.00%	3.80% to    3.54%
2003	0.95% to 1.45%	6,455		11.77 to 11.73		75,971	0.00%	17.71% to  17.31%	(a) (b)
Strong Advisor Mid Cap Growth Fund – Class Z
2004	0.95% to 1.50%	63,387		5.10 to 4.98		320,230	0.00%	17.28% to  16.63%
2003	0.95% to 1.50%	52,440		4.35 to 4.27		226,739	0.00%	32.98% to  32.24%
Templeton Foreign Fund – Class A
2007	0.95% to 1.65%	171,992		19.78 to 18.73		4,468,461	1.54%	16.13% to  15.30%
2006	0.95% to 1.65%	222,002		17.03 to 16.24		4,999,740	2.04%	18.79% to  17.96%
2005	0.95% to 1.65%	291,056		14.33 to 13.77		5,675,305	1.52%	9.59% to    8.81%
2004	0.95% to 1.65%	363,832		13.08 to 12.66		6,474,126	1.75%	17.02% to  16.19%
2003	0.95% to 1.65%	491,545		11.18 to 10.89		7,349,490	1.99%	29.28% to  28.36%
The Dreyfus Premier Third Century Fund, Inc. – Class Z
2007	0.95% to 1.85%	54,512		7.05 to 6.58		882,684	0.43%	6.53% to    5.56%
2006	0.95% to 1.85%	58,550		6.62 to 6.23		906,072	0.00%	7.97% to    7.00%
2005	0.95% to 1.85%	75,308		6.13 to 5.82		1,045,882	0.37%	2.49% to    1.56%
2004	0.95% to 1.85%	83,260		5.98 to 5.73		1,153,302	0.00%	4.92% to    3.97%
2003	0.95% to 1.85%	94,492		5.70 to 5.52		1,239,435	0.00%	24.68% to  23.55%
Van Kampen Growth and Income Fund – Class A
2007	0.95% to 1.90%	194,088		17.81 to 17.03		3,432,605	1.87%	1.57% to    0.59%
2006	0.95% to 1.90%	191,891		17.54 to 16.93		3,348,357	1.57%	14.91% to  13.81%
2005	0.95% to 1.90%	145,322		15.26 to 14.87		2,209,824	1.33%	8.83% to    7.79%
2004	0.95% to 1.85%	107,166		14.02 to 13.81		1,500,210	1.14%	12.86% to  11.83%
2003	0.95% to 1.45%	38,228		12.42 to 12.38		474,848	0.59%	24.24% to  23.82%	(a)
Van Kampen Mid Cap Growth Fund – Class A
2007	0.95% to 1.55%	75,338		22.47 to 21.85		1,683,123	0.00%	21.20% to  20.46%
2006	0.95% to 1.55%	41,717		18.54 to 18.14		767,703	0.00%	7.97% to    7.32%
2005	0.95% to 1.55%	27,114		17.17 to 16.90		464,288	0.00%	16.50% to  15.79%
2004	0.95% to 1.55%	9,302		14.74 to 14.59		136,813	0.00%	19.88% to  19.15%
2003	0.95% to 1.45%	1,518		12.30 to 12.26		18,651	0.00%	22.98% to  22.57%	(a)
Van Kampen Real Estate Securities Fund – Class A
2007	0.95% to 1.90%	66,818		22.25 to 21.28		1,475,872	1.27%	-18.13% to -18.92%
2006	0.95% to 1.90%	121,543		27.18 to 26.24		3,282,788	1.32%	36.14% to  34.84%
2005	0.95% to 1.90%	71,646		19.96 to 19.46		1,422,868	1.66%	15.50% to  14.39%
2004	0.95% to 1.90%	38,415		17.29 to 17.01		661,824	1.32%	35.38% to  34.08%
2003	0.95% to 1.65%	5,655		12.77 to 12.71		72,097	2.27%	27.69% to  27.09%	(a) (b)
Waddell & Reed Advisors Small Cap Fund – Class A
2007	0.95% to 1.60%	16,996		17.14 to 16.62		288,028	0.00%	6.66% to    5.95%
2006	0.95% to 1.60%	18,050		16.07 to 15.69		288,219	0.00%	5.16% to    4.47%
2005	0.95% to 1.60%	16,011		15.28 to 15.01		243,451	0.00%	11.31% to  10.58%
2004	0.95% to 1.45%	11,284		13.73 to 13.61		154,603	0.00%	12.18% to  11.62%
2003	1.20% to 1.25%	747		12.22 to 12.21		9,125	0.00%	22.16% to  22.12%	(a)

(Continued)

63

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity	Investment Income Ratio**	Total Return***
Wells Fargo Advantage Funds SM– Common Stock Fund – Class Z
2007	0.95% to 1.90%	215,499	$ 15.45 to 14.35	$	4,102,076	0.62%	8.89% to   7.84%
2006	0.95% to 1.90%	246,991	14.19 to 13.31		4,298,808	0.00%	14.22% to 13.13%
2005	0.95% to 1.90%	279,865	12.42 to 11.76		4,275,989	0.00%	10.95% to   9.89%
2004	0.95% to 1.90%	319,273	11.20 to 10.70		4,395,409	0.00%	8.91% to   7.87%
2003	0.95% to 1.90%	332,850	10.28 to   9.92		4,210,020	0.00%	37.38% to 36.07%
Wells Fargo Advantage Funds SM– Growth and Income Fund – Investor Class
2007	0.95% to 1.85%	20,646	8.00 to   7.49		162,231	0.58%	1.26% to   0.34%
2006	0.95% to 1.85%	21,787	7.90 to   7.47		169,326	0.28%	14.30% to 13.26%
2005	0.95% to 1.85%	36,681	6.91 to   6.59		251,415	0.41%	-2.74% to  -3.62%
2004	0.95% to 1.85%	36,418	7.11 to   6.84		256,955	0.48%	7.85% to   6.87%
2003	0.95% to 1.85%	33,718	6.59 to   6.40		221,102	0.19%	23.26% to 22.14%
Wells Fargo Advantage Funds SM– Growth Fund – Investor Class
2007	0.95% to 1.45%	41,166	16.09 to 15.76		654,897	0.00%	26.20% to 25.56%
2006	0.95% to 1.45%	31,689	12.75 to 12.55		400,625	0.00%	6.71% to   6.17%
2005	0.95% to 1.45%	15,301	11.95 to 11.82		181,762	0.00%	7.96% to   7.42%
2004	0.95% to 1.45%	1,702	11.07 to 11.00		18,787	0.00%	11.50% to 10.93%
Wells Fargo Advantage Funds SM– Large Cap Growth Fund – Investor Class
2007	1.30%	67,345	28.52		1,920,567	0.00%	16.58%
2006	1.30%	78,113	24.46		1,910,814	0.00%	2.52%
2005	1.30%	86,404	23.86		2,061,588	0.00%	6.47%
2004	1.30%	89,847	22.41		2,013,457	0.00%	7.23%
2003	1.30%	104,342	20.90		2,180,594	0.00%	25.19%
Wells Fargo Advantage Funds SM– Mid Cap Growth Fund – Class Z
2007	0.95% to 1.50%	27,492	14.73 to 14.51		402,742	0.00%	17.49% to 16.84%
2006	0.95% to 1.50%	24,109	12.54 to 12.42		301,104	0.00%	12.71% to 12.08%
2005	0.95% to 1.50%	35,742	11.13 to 11.08		397,069	0.00%	11.25% to 10.80%	(a) (b)
2007 Reserves for annuity contracts in payout phase:					71,144
2007 Contract owners’ equity				$	341,813,434
2006 Reserves for annuity contracts in payout phase					81,495
2006 Contract owners’ equity				$	355,699,377
2005 Reserves for annuity contracts in payout phase:					82,830
2005 Contract owners’ equity				$	348,541,242
2004 Reserves for annuity contracts in payout phase:					86,864
2004 Contract owners’ equity				$	343,538,465
2003 Reserves for annuity contracts in payout phase:					86,845
2003 Contract owners’ equity				$	328,058,126

* This represents the range of annual contract expense rates 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 annual contract maintenance charges, that result in direct reductions to the contractholder accounts 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 range of minimum and maximum total returns for the period indicated, including changes in the value of the underlying mutual fund, which reflects the reduction of unit value for expenses assessed. It does not include any expenses assessed through the redemption of units. The inclusion of these expenses in the calculation would result in a reduction of the total return presented.

(a)&(b) Denote the minimum and maximum of the total return ranges, respectively, for underlying mutual fund options that were added during the reporting period. These returns were not annualized. Minimum and maximum ranges are not shown for underlying mutual fund options for which a single contract expense rate (product option) is representative of all units issued and outstanding at period end. Such options that were added during the reporting period are designated using both symbols.

64

Report of Independent Registered Public Accounting Firm

The Board of Directors of Nationwide Life Insurance Company and

    Contract Owners of Nationwide Variable Account:

We have audited the accompanying statement of assets, liabilities and contract owners’ equity of Nationwide Variable Account (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

65

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