Nationwide^® VLI

Separate Account-2

  December 31, 2007

Annual Report

                

Nationwide Life Insurance Company

Home Office: Columbus, Ohio    

VLOB –12 –12/07

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2007

Assets:
Investments at fair value:
AIM VIF – Basic Value Fund – Series I (AIMBValue)
70,258 shares (cost $943,335)	$	894,381
AIM VIF – Capital Appreciation Fund – Series I (AIMCapAp)
12,124 shares (cost $350,547)		356,072
AIM VIF – Capital Development Fund – Series I (AIMCapDev)
34,361 shares (cost $647,149)		647,712
AllianceBernstein VPS – Growth and Income Portfolio – Class A (AlVGrIncA)
35,517 shares (cost $914,431)		952,571
AllianceBernstein VPS – Small/Mid Cap Value Portfolio – Class A (AlVSmMdCpA)
61,262 shares (cost $1,146,051)		1,048,199
American Century VP – Balanced Fund – Class I (ACVPBal)
642,202 shares (cost $4,153,753)		4,707,339
American Century VP – Capital Appreciation Fund – Class I (ACVPCapAp)
1,334,546 shares (cost $11,340,472)		21,326,052
American Century VP – Income & Growth Fund – Class I (ACVPIncGr)
354,382 shares (cost $2,522,614)		2,998,071
American Century VP – Inflation Protection Fund – Class II (ACVPInflPro2)
85,992 shares (cost $884,927)		907,217
American Century VP – International Fund – Class I (ACVPInt)
784,080 shares (cost $4,949,273)		9,299,195
American Century VP – International Fund – Class III (ACVPInt3)
301,693 shares (cost $2,931,623)		3,578,085
American Century VP – Mid Cap Value Fund – Class I (ACVPMdCpV)
88,661 shares (cost $1,231,175)		1,147,271
American Century VP – Ultra® Fund – Class I (ACVPUltra)
80,847 shares (cost $874,711)		982,286
American Century VP – Value Fund – Class I (ACVPVal)
1,598,095 shares (cost $12,805,947)		11,937,770
American Century VP – VistaSM Fund – Class I (ACVPVista1)
82,287 shares (cost $1,723,192)		1,810,321
Credit Suisse Trust – Global Small Cap Portfolio (CSTGlobSmCp)
50,821 shares (cost $695,323)		715,561
Credit Suisse Trust – International Focus Portfolio (CSTIntFoc)
477,097 shares (cost $4,591,372)		7,561,991
Credit Suisse Trust – Small Cap Core I Portfolio (CSTSmCapGr)
643,971 shares (cost $8,028,525)		9,962,232
Dreyfus IP – Small Cap Stock Index Portfolio – Service Shares (DryIPSmCap)
100,501 shares (cost $1,749,086)		1,772,837
Dreyfus Stock Index Fund, Inc. – Initial Shares (DryStkIx)
1,890,934 shares (cost $55,598,806)		70,720,936
Dreyfus VIF – Appreciation Portfolio – Initial Shares (DryVApp)
123,876 shares (cost $4,306,898)		5,557,098

(Continued)

2

NATIONWIDE VLI SEPARATE ACCOUNT-2

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

Dreyfus VIF – Developing Leaders Portfolio – Initial Shares (DryVDevLd) 6,020 shares (cost $249,215)	$	194,701
Dreyfus VIF – Growth and Income Portfolio – Initial Shares (DryVGroInc) 90,127 shares (cost $1,782,157)		2,291,931
Federated IS – American Leaders Fund II – Primary Shares (FedAmLead) 7,956 shares (cost $154,462)		136,280
Federated IS – Capital Appreciation Fund II – Primary Shares (FedCapAp)
1,936 shares (cost $14,294)		14,310
Federated IS – Market Opportunity Fund II – Service Shares (FedMrkOp)
328 shares (cost $3,339)		3,366
Federated IS – Quality Bond Fund II – Primary Shares (FedQualBd)
110,065 shares (cost $1,218,223)		1,248,135
Fidelity® VIP – Equity-Income Portfolio – Initial Class (FidVIPEI)
3,079,196 shares (cost $71,735,301)		73,623,577
Fidelity® VIP – Growth Portfolio – Initial Class (FidVIPGr)
2,034,040 shares (cost $87,818,886)		91,775,888
Fidelity® VIP – High Income Portfolio – Initial Class (FidVIPHI)
2,603,105 shares (cost $16,535,354)		15,566,566
Fidelity® VIP – High Income Portfolio – Initial Class R (FidVIPHIR)
270,430 shares (cost $1,744,906)		1,611,764
Fidelity® VIP – Overseas Portfolio – Initial Class (FidVIPOv)
683,759 shares (cost $9,786,571)		17,312,773
Fidelity® VIP – Overseas Portfolio – Service Class R (FidVIPOvSR)
239,889 shares (cost $5,336,141)		6,042,793
Fidelity® VIP II – Asset Manager Portfolio – Initial Class (FidVIPAM)
1,270,518 shares (cost $19,102,565)		21,052,491
Fidelity® VIP II – Contrafund® Portfolio – Initial Class (FidVIPCon)
2,730,078 shares (cost $70,765,464)		76,169,184
Fidelity® VIP II – Investment Grade Bond Portfolio – Service Class (FidVIPIGBdS)
280,698 shares (cost $3,492,437)		3,556,446
Fidelity® VIP III – Growth Opportunities Portfolio – Initial Class (FidVIPGrOp)
200,620 shares (cost $3,142,035)		4,487,873
Fidelity® VIP III – Mid Cap Portfolio – Service Class (FidVIPMCapS)
290,342 shares (cost $9,548,340)		10,446,498
Fidelity® VIP III – Value Strategies Portfolio – Service Class (FidVIPVaIS)
113,334 shares (cost $1,515,529)		1,421,202
Fidelity® VIP IV – Energy Portfolio – Service Class 2 (FidVIPEnergyS2)
267,823 shares (cost $6,007,872)		7,081,239
Fidelity® VIP IV – Freedom Fund 2010 Portfolio – Service Class (FidVIPFree10S)
85,786 shares (cost $1,042,501)		1,025,146
Fidelity® VIP IV – Freedom Fund 2020 Portfolio – Service Class (FidVIPFree20S)
62,043 shares (cost $763,472)		782,977
Fidelity® VIP IV – Freedom Fund 2030 Portfolio – Service Class (FidVIPFree30S)
53,225 shares (cost $690,615)		692,459
Franklin Templeton VIP – Developing Markets Securities Fund – Class 3 (FrVIPDevMrk3)
190,470 shares (cost $2,632,367)		3,039,896
Franklin Templeton VIP – Foreign Securities Fund – Class 1 (FrVIPForSec)
39,981 shares (cost $607,760)		822,809

(Continued)

3

NATIONWIDE VLI SEPARATE ACCOUNT-2

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

Franklin Templeton VIP – Foreign Securities Fund – Class 3 (FrVIPForSec3)
134,515 shares (cost $2,425,748)	$	2,714,504
Franklin Templeton VIP – Global Income Securities Fund – Class 3 (FrVIPGlInc3)
103,944 shares (cost $1,672,779)		1,736,908
Franklin Templeton VIP – Income Securities Fund – Class 2 (FrVIPIncSec2)
73,049 shares (cost $1,284,474)		1,264,486
Franklin Templeton VIP – Rising Dividends Securities Fund – Class 1 (FrVIPRisDiv)
206,704 shares (cost $3,911,343)		4,053,459
Franklin Templeton VIP – Small Cap Value Securities Fund – Class 1 (FrVIPSCapV1)
180,050 shares (cost $3,225,197)		3,129,277
Janus Aspen Series – Balanced Portfolio – Service Shares (JAspBal)
8,420 shares (cost $247,137)		261,678
Janus Aspen Series – Forty Portfolio – Service Shares (JAspForty)
104,871 shares (cost $3,230,483)		4,278,728
Janus Aspen Series – Global Technology Portfolio – Service Shares (JAspGlTechS)
267,724 shares (cost $1,099,535)		1,386,809
Janus Aspen Series – INTECH Risk-Managed Core Portfolio – Service Shares (JAspRMgCore)
11,303 shares (cost $145,168)		150,218
Janus Aspen Series – International Growth Portfolio – Service II Shares (JAspIntGroS2)
97,225 shares (cost $5,300,419)		6,298,209
Janus Aspen Series – International Growth Portfolio – Service Shares (JAspIntGroS)
75,628 shares (cost $3,687,842)		4,878,735
Lehman Brothers AMT – Short Duration Bond Portfolio – I Class (LBTShrtDBd)
281,267 shares (cost $3,642,729)		3,656,467
MFS VIT – Investors Growth Stock Series – Initial Class (MFSInvGrSt)
20,287 shares (cost $193,057)		239,795
MFS VIT – Value Series – Initial Class (MFSValue)
87,589 shares (cost $1,284,263)		1,335,728
Nationwide VIT – American Funds Asset Allocation Fund – Class II (NVITAstAll2)
51,089 shares (cost $981,744)		988,565
Nationwide VIT – American Funds Bond Fund – Class II (NVITBnd2)
80,626 shares (cost $936,054)		904,621
Nationwide VIT – American Funds Global Growth Fund – Class II (NVITGlobGr2)
57,093 shares (cost $1,367,691)		1,488,979
Nationwide VIT – American Funds Growth – Income Fund – Class II (NVITGroInc2)
8,237 shares (cost $368,961)		358,802
Nationwide VIT – American Funds Growth Fund – Class II (NVITGrowth2)
22,205 shares (cost $1,510,203)		1,602,296
Nationwide VIT – Federated High Income Bond Fund – Class I (NVITFHiInc)
26,399 shares (cost $208,159)		201,689
Nationwide VIT – Federated High Income Bond Fund – Class III (NVITFHiInc3)
86,843 shares (cost $694,583)		662,615
Nationwide VIT – Gartmore Emerging Markets Fund – Class I (NVITEmMrkts)
159,394 shares (cost $2,446,819)		3,603,904
Nationwide VIT – Gartmore Emerging Markets Fund – Class III (NVITEmMrkts3)
350,846 shares (cost $6,727,851)		7,925,608
Nationwide VIT – Gartmore Global Utilities Fund – Class I (NVITGlUtl)
188,596 shares (cost $2,436,140)		2,312,188

(Continued)

4

NATIONWIDE VLI SEPARATE ACCOUNT-2

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

Nationwide VIT – Gartmore International Growth Fund – Class I (NVITIntGro)
203,907 shares (cost $2,706,558)	$	2,866,934
Nationwide VIT – Global Financial Services Fund – Class I (NVITGlFin)
71,857 shares (cost $944,257)		782,526
Nationwide VIT – Global Health Sciences Fund – Class I (NVITGlHlth)
34,337 shares (cost $366,274)		404,145
Nationwide VIT – Global Health Sciences Fund – Class III (NVITGlHlth3)
46,463 shares (cost $523,297)		548,260
Nationwide VIT – Global Technology and Communications Fund – Class I (NVITGlTech)
108,233 shares (cost $416,291)		556,315
Nationwide VIT – Global Technology and Communications Fund – Class III (NVITGlTech3)
148,377 shares (cost $717,520)		768,592
Nationwide VIT – Government Bond Fund – Class I (NVITGvtBd)
971,582 shares (cost $11,423,027)		11,299,495
Nationwide VIT – Growth Fund – Class I (NVITGrowth)
1,210,997 shares (cost $15,078,577)		17,559,464
Nationwide VIT – International Index Fund – Class VI (NVITIntIdx6)
33,216 shares (cost $378,466)		385,975
Nationwide VIT – International Value Fund – Class I (NVITIntValI)
38,730 shares (cost $614,704)		677,008
Nationwide VIT – International Value Fund – Class III (NVITIntVal3)
125,378 shares (cost $2,223,248)		2,185,334
Nationwide VIT – Investor Destinations Aggressive Fund – Class II (NVITIDAgg2)
332,338 shares (cost $4,371,158)		4,519,790
Nationwide VIT – Investor Destinations Conservative Fund – Class II (NVITIDCon2)
86,587 shares (cost $902,778)		900,508
Nationwide VIT – Investor Destinations Moderate Fund – Class II (NVITIDMod2)
564,994 shares (cost $6,586,962)		7,028,530
Nationwide VIT – Investor Destinations Moderately Aggressive Fund – Class II (NVITIDModAg2)
554,000 shares (cost $6,723,538)		7,390,366
Nationwide VIT – Investor Destinations Moderately Conservative Fund – Class II (NVITIDModCon2)
198,793 shares (cost $2,235,365)		2,256,300
Nationwide VIT – Mid Cap Growth Fund – Class I (NVITMdCpGr)
36,849 shares (cost $1,005,444)		1,198,692
Nationwide VIT – Mid Cap Index Fund – Class I (NVITMidCap)
349,836 shares (cost $5,914,001)		6,709,860
Nationwide VIT – Money Market Fund – Class I (NVITMyMkt)
36,100,441 shares (cost $36,100,441)		36,100,441
Nationwide VIT – Multi-Manager Small Cap Growth Fund – Class I (NVITSmCapGr)
95,477 shares (cost $1,649,364)		1,719,537
Nationwide VIT – Multi-Manager Small Cap Value Fund – Class I (NVITSmCapVal)
898,029 shares (cost $10,845,901)		8,872,529
Nationwide VIT – Multi-Manager Small Company Fund – Class I (NVITSmComp)
1,240,192 shares (cost $26,609,627)		27,544,669
Nationwide VIT – Nationwide Fund – Class I (NVITNWFund)
5,585,888 shares (cost $72,950,078)		75,912,216
Nationwide VIT – Nationwide Leaders Fund – Class I (NVITNWLead)
56,399 shares (cost $773,976)		735,448

(Continued)

5

NATIONWIDE VLI SEPARATE ACCOUNT-2

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

Nationwide VIT – U.S. Growth Leaders Fund – Class I (NVITUSGro)
71,714 shares (cost $837,134)	$	925,823
Nationwide VIT – Van Kampen Comstock Value Fund – Class I (NVITVKVal)
82,640 shares (cost $998,563)		950,359
Nationwide VIT – Van Kampen Multi Sector Bond Fund – Class I (NVITMltSec)
165,125 shares (cost $1,628,560)		1,628,131
Neuberger Berman AMT – Balanced Portfolio – I Class Shares (NBTBal)
19,898 shares (cost $253,950)		260,265
Neuberger Berman AMT – Fasciano Portfolio – S Class Shares (NBTAFasc)
6,905 shares (cost $100,660)		100,122
Neuberger Berman AMT – Growth Portfolio – Class I (NBTAGro)
1,006,327 shares (cost $10,363,883)		19,422,115
Neuberger Berman AMT – Guardian Portfolio – I Class Shares (NBTAGuard)
87,633 shares (cost $1,297,720)		1,849,922
Neuberger Berman AMT – International Portfolio – Class S (NBTAInt)
33,606 shares (cost $467,661)		457,371
Neuberger Berman AMT – Mid-Cap Growth Portfolio – Class S (NBTAMCGrS)
30,362 shares (cost $771,979)		854,089
Neuberger Berman AMT – Partners Portfolio – Class I (NBTAPart)
1,349,518 shares (cost $22,968,805)		28,029,484
Neuberger Berman AMT – Regency Portfolio – Class S (NBTARegS)
16,038 shares (cost $286,455)		278,576
Neuberger Berman AMT – Socially Responsive Portfolio Class I (NBTSocRes)
25,856 shares (cost $422,324)		463,088
Oppenheimer VAF – Balanced Fund – Non-Service Shares (OppBal)
765,508 shares (cost $11,717,547)		12,561,987
Oppenheimer VAF – Capital Appreciation Fund – Non-Service Shares (OppCapAp)
222,759 shares (cost $7,263,703)		10,509,747
Oppenheimer VAF – Core Bond Fund – Non-Service Shares (OppBdFd)
978,600 shares (cost $10,780,903)		10,823,312
Oppenheimer VAF – Global Securities Fund – Class 3 (OppGlSec3)
220,838 shares (cost $7,521,202)		8,131,252
Oppenheimer VAF – Global Securities Fund – Non-Service Shares (OppGlSec)
877,535 shares (cost $21,177,746)		32,117,768
Oppenheimer VAF – High Income Fund – Class 3 (OppHighInc3)
12,893 shares (cost $106,078)		102,885
Oppenheimer VAF – High Income Fund – Non-Service Shares (OppHighInc)
55,603 shares (cost $456,051)		442,047
Oppenheimer VAF – Main Street Small Cap Fund® – Non-Service Shares (OppMStSCap)
65,539 shares (cost $1,211,515)		1,192,816
Oppenheimer VAF – Main Street® – Non-Service Shares (OppMSt)
76,597 shares (cost $1,720,425)		1,961,658
Oppenheimer VAF – Mid Cap Fund – Non-Service Shares (OppMidCap)
23,666 shares (cost $1,130,700)		1,279,616
Putnam VT – Growth and Income Fund – IB Shares (PVTGroInc)
4,593 shares (cost $118,136)		106,181
Putnam VT – International Equity Fund – IB Shares (PVTIntlEq)
26,599 shares (cost $496,888)		504,315

(Continued)

6

NATIONWIDE VLI SEPARATE ACCOUNT-2

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

Putnam VT – Voyager Fund – IB Shares (PVTVoygr)
2,318 shares (cost $65,317)	$	73,548
T. Rowe Price Blue Chip Growth Portfolio – II (TRoeBlChip2)
57,232 shares (cost $665,862)		669,618
T. Rowe Price Equity Income Portfolio – II (TRowEqInc2)
64,041 shares (cost $1,585,540)		1,514,571
T. Rowe Price Limited Term Bond Portfolio – Class II (TRowLtdTBd2)
80,176 shares (cost $394,119)		396,873
The Dreyfus Socially Responsible Growth Fund, Inc. – Initial Shares (DrySRGro)
278,159 shares (cost $8,716,033)		8,483,853
Van Eck Worldwide Insurance Trust – Bond Fund – Initial Class (VEWrldBd)
267,346 shares (cost $3,177,606)		3,240,230
Van Eck Worldwide Insurance Trust – Emerging Markets Fund – Initial Class (VEWrldEMkt)
509,596 shares (cost $10,245,788)		14,125,996
Van Eck Worldwide Insurance Trust – Hard Assets Fund – Initial Class (VEWrldHAs)
382,297 shares (cost $11,314,991)		15,746,819
Van Kampen UIF – Core Plus Fixed Income Portfolio – Class I (VKUCorPlus)
48,562 shares (cost $553,303)		562,353
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I (VKUEmMkt)
276,097 shares (cost $2,357,188)		2,355,104
Van Kampen UIF – U.S. Real Estate Portfolio – Class I (VKUUSRE)
728,898 shares (cost $16,031,676)		16,072,195
Wells Fargo AVT – Discovery FundSM (WFVDisc)
448,567 shares (cost $5,471,768)		9,020,686
Wells Fargo AVT – Opportunity FundSM (WFVOpp)
1,432,748 shares (cost $28,110,655)		31,563,436
Total Investments		1,012,418,914
Accounts Receivable		183,495
Total Assets		1,012,602,409
Accounts Payable		–
Contract Owners Equity (note 7)	$	1,012,602,409

See accompanying notes to financial statements.

7

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS

Year Ended December 31, 2007

Investment activity:		Total		AIMBValue		AIMCapAp		AIMCapDev		AlVGrIncA		AlVSmMdCpA		ACVPBal		ACVPCapAp
Reinvested dividends	$	16,047,604		5,496		–		–		16,764		15,038		105,996		–
Mortality and expense risk charges (note 3)		(5,995,014	)	(6,372	)	(853	)	(2,516	)	(4,820	)	(8,035	)	(30,786	)	(113,921	)
Net investment income (loss)		10,052,590		(876	)	(853	)	(2,516	)	11,944		7,003		75,210		(113,921	)
Proceeds from mutual fund shares sold		211,008,828		749,472		236,142		93,181		443,654		997,512		894,354		2,288,328
Cost of mutual fund shares sold		(182,140,052	)	(627,736	)	(223,532	)	(69,034	)	(383,608	)	(878,225	)	(797,443	)	(1,481,279	)
Realized gain (loss) on investments		28,868,776		121,736		12,610		24,147		60,046		119,287		96,911		807,049
Change in unrealized gain (loss) on investments		1,175,696		(153,770	)	4,289		(31,006	)	(79,613	)	(219,358	)	(207,365	)	5,759,766
Net gain (loss) on investments		30,044,472		(32,034	)	16,899		(6,859	)	(19,567	)	(100,071	)	(110,454	)	6,566,815
Reinvested capital gains		59,266,158		51,237		–		51,509		56,897		111,212		258,071		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	99,363,220		18,327		16,046		42,134		49,274		18,144		222,827		6,452,894
Investment activity:		ACVPIncGr		ACVPInflPro2		ACVPInt		ACVPInt3		ACVPMdCpV		ACVPUltra		ACVPVal		ACVPVista1
Reinvested dividends	$	64,325		36,865		71,251		16,339		8,591		–		232,053		–
Mortality and expense risk charges (note 3)		(19,276	)	(4,204	)	(58,730	)	(14,767	)	(7,231	)	(3,189	)	(80,694	)	(3,330	)
Net investment income (loss)		45,049		32,661		12,521		1,572		1,360		(3,189	)	151,359		(3,330	)
Proceeds from mutual fund shares sold		1,178,088		368,796		2,741,145		325,208		737,710		125,492		4,185,429		730,760
Cost of mutual fund shares sold		(667,236	)	(378,745	)	(1,318,236	)	(265,256	)	(697,024	)	(116,800	)	(3,550,268	)	(660,530	)
Realized gain (loss) on investments		510,852		(9,949	)	1,422,909		59,952		40,686		8,692		635,161		70,230
Change in unrealized gain (loss) on investments		(556,432	)	48,315		148,771		350,687		(94,273	)	110,894		(2,727,985	)	86,032
Net gain (loss) on investments		(45,580	)	38,366		1,571,680		410,639		(53,587	)	119,586		(2,092,824	)	156,262
Reinvested capital gains		–		–		–		–		13,080		–		1,203,357		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	(531	)	71,027		1,584,201		412,211		(39,147	)	116,397		(738,108	)	152,932

(Continued)

8

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:		CSTGlobSmCp		CSTIntFoc		CSTSmCapGr		DryIPSmCap		DryStkIx		DryVApp		DryVDevLd		DryVGroInc
Reinvested dividends	$	–		83,974		–		7,542		1,278,701		93,816		2,143		17,911
Mortality and expense risk charges (note 3)		(5,020	)	(42,408	)	(63,195	)	(10,927	)	(431,654	)	(35,695	)	(1,582	)	(12,962	)
Net investment income (loss)		(5,020	)	41,566		(63,195	)	(3,385	)	847,047		58,121		561		4,949
Proceeds from mutual fund shares sold		399,098		1,495,179		1,592,175		781,361		11,068,196		1,142,001		172,902		360,185
Cost of mutual fund shares sold		(290,428	)	(842,362	)	(907,245	)	(613,148	)	(11,053,247	)	(748,322	)	(171,372	)	(281,700	)
Realized gain (loss) on investments		108,670		652,817		684,930		168,213		14,949		393,679		1,530		78,485
Change in unrealized gain (loss) on investments		(126,367	)	457,108		(729,126	)	(260,015	)	2,668,625		(74,888	)	(63,224	)	(14,780	)
Net gain (loss) on investments		(17,697	)	1,109,925		(44,196	)	(91,802	)	2,683,574		318,791		(61,694	)	63,705
Reinvested capital gains		–		–		–		80,999		–		–		37,460		107,884
Net increase (decrease) in contract owners’ equity resulting from operations	$	(22,717	)	1,151,491		(107,391	)	(14,188	)	3,530,621		376,912		(23,673	)	176,538
Investment activity:		FedAmLead		FedCapAp		FedMrkOp		FedQualBd		FidVIPEI		FidVIPGr		FidVIPHI		FidVIPHIR
Reinvested dividends	$	2,840		77		18		64,318		1,402,843		698,818		1,310,798		134,135
Mortality and expense risk charges (note 3)		(983	)	(85	)	(14	)	(8,183	)	(475,675	)	(525,924	)	(102,335	)	(3,886	)
Net investment income (loss)		1,857		(8	)	4		56,135		927,168		172,894		1,208,463		130,249
Proceeds from mutual fund shares sold		64,154		9,503		3,259		325,170		8,759,064		9,539,558		5,865,992		319,436
Cost of mutual fund shares sold		(67,201	)	(7,783	)	(3,316	)	(348,405	)	(7,397,394	)	(10,477,094	)	(6,045,948	)	(323,880	)
Realized gain (loss) on investments		(3,047	)	1,720		(57	)	(23,235	)	1,361,670		(937,536	)	(179,956	)	(4,444	)
Change in unrealized gain (loss) on investments		(37,768	)	(1,071	)	27		25,413		(7,496,224	)	20,372,292		(589,939	)	(133,142	)
Net gain (loss) on investments		(40,815	)	649		(30	)	2,178		(6,134,554	)	19,434,756		(769,895	)	(137,586	)
Reinvested capital gains		21,161		–		–		–		6,185,875		75,097		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	(17,797	)	641		(26	)	58,313		978,489		19,682,747		438,568		(7,337	)

(Continued)

9

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:		FidVIPOv		FidVIPOvSR		FidVIPAM		FidVIPCon		FidVIPIGBdS		FidVIPGrOp		FidVIPMCapS		FidVIPVaIS
Reinvested dividends	$	578,448		181,133		1,253,683		686,413		146,290		–		72,569		14,773
Mortality and expense risk charges (note 3)		(101,705	)	(29,910	)	(127,607	)	(430,620	)	(18,055	)	(26,879	)	(58,040	)	(9,518	)
Net investment income (loss)		476,743		151,223		1,126,076		255,793		128,235		(26,879	)	14,529		5,255
Proceeds from mutual fund shares sold		3,167,179		1,406,623		2,693,031		9,194,612		717,226		766,393		2,427,924		1,716,288
Cost of mutual fund shares sold		(1,568,711	)	(1,083,583	)	(2,841,731	)	(7,092,823	)	(715,271	)	(423,409	)	(2,030,234	)	(1,604,127	)
Realized gain (loss) on investments		1,598,468		323,040		(148,700	)	2,101,789		1,955		342,984		397,690		112,161
Change in unrealized gain (loss) on investments		(557,205	)	(23,209	)	1,290,334		(9,286,236	)	607		569,338		90,453		(237,678	)
Net gain (loss) on investments		1,041,263		299,831		1,141,634		(7,184,447	)	2,562		912,322		488,143		(125,517	)
Reinvested capital gains		1,185,300		366,243		573,845		18,328,735		–		–		879,087		196,544
Net increase (decrease) in contract owners’ equity resulting from operations	$	2,703,306		817,297		2,841,555		11,400,081		130,797		885,443		1,381,759		76,282
Investment activity:		FidVIPEnergyS2		FidVIPFree10S		FidVIPFree20S		FidVIPFree30S		FrVIPDevMrk3		FrVIPForSec		FrVIPForSec3		FrVIPGlInc3
Reinvested dividends	$	6,232		24,207		15,708		13,796		50,834		22,975		44,225		27,088
Mortality and expense risk charges (note 3)		(26,992	)	(1,763	)	(3,367	)	(2,958	)	(12,523	)	(5,522	)	(10,242	)	(5,069	)
Net investment income (loss)		(20,760	)	22,444		12,341		10,838		38,311		17,453		33,983		22,019
Proceeds from mutual fund shares sold		1,435,344		109,311		190,686		112,856		635,633		488,515		276,009		279,144
Cost of mutual fund shares sold		(1,257,175	)	(100,044	)	(151,998	)	(101,906	)	(486,893	)	(332,484	)	(213,108	)	(263,546	)
Realized gain (loss) on investments		178,169		9,267		38,688		10,950		148,740		156,031		62,901		15,598
Change in unrealized gain (loss) on investments		1,369,655		(22,637	)	(17,734	)	(1,752	)	177,835		(74,954	)	97,283		52,885
Net gain (loss) on investments		1,547,824		(13,370	)	20,954		9,198		326,575		81,077		160,184		68,483
Reinvested capital gains		287,074		20,602		21,697		23,865		168,029		47,573		95,906		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	1,814,138		29,676		54,992		43,901		532,915		146,103		290,073		90,502

(Continued)

10

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:		FrVIPIncSec2		FrVIPRisDiv		FrVIPSCapV1		JAspBal		JAspForty		JAspGlTechS		JAspRMgCore		JAspIntGroS2
Reinvested dividends	$	28,341		112,850		31,969		4,965		6,010		4,567		757		24,976
Mortality and expense risk charges (note 3)		(4,516	)	(24,928	)	(20,959	)	(1,304	)	(18,109	)	(6,640	)	(1,150	)	(28,961	)
Net investment income (loss)		23,825		87,922		11,010		3,661		(12,099	)	(2,073	)	(393	)	(3,985	)
Proceeds from mutual fund shares sold		184,819		1,115,275		969,057		243,508		1,134,169		345,828		271,827		2,135,502
Cost of mutual fund shares sold		(170,986	)	(879,219	)	(847,599	)	(201,461	)	(695,018	)	(229,951	)	(262,985	)	(1,586,965	)
Realized gain (loss) on investments		13,833		236,056		121,458		42,047		439,151		115,877		8,842		548,537
Change in unrealized gain (loss) on investments		(35,376	)	(509,454	)	(487,268	)	(18,385	)	540,465		112,471		4,969		655,312
Net gain (loss) on investments		(21,543	)	(273,398	)	(365,810	)	23,662		979,616		228,348		13,811		1,203,849
Reinvested capital gains		5,256		63,951		244,614		–		–		–		1,665		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	7,538		(121,525	)	(110,186	)	27,323		967,517		226,275		15,083		1,199,864
Investment activity:		JAspIntGroS		LBTShrtDBd		MFSInvGrSt		MFSValue		NVITAstAll2		NVITBnd2		NVITGlobGr2		NVITGroInc2
Reinvested dividends	$	21,192		100,898		904		11,161		17,787		51,410		33,315		4,303
Mortality and expense risk charges (note 3)		(30,374	)	(20,953	)	(1,562	)	(6,638	)	(3,347	)	(3,107	)	(6,622	)	(315	)
Net investment income (loss)		(9,182	)	79,945		(658	)	4,523		14,440		48,303		26,693		3,988
Proceeds from mutual fund shares sold		3,169,721		1,609,594		92,727		553,576		108,637		208,815		224,714		2,958
Cost of mutual fund shares sold		(1,856,462	)	(1,650,263	)	(74,701	)	(450,208	)	(99,627	)	(200,160	)	(194,453	)	(2,921	)
Realized gain (loss) on investments		1,313,259		(40,669	)	18,026		103,368		9,010		8,655		30,261		37
Change in unrealized gain (loss) on investments		(135,689	)	120,290		9,766		(52,992	)	(652	)	(41,696	)	90,156		(10,159	)
Net gain (loss) on investments		1,177,570		79,621		27,792		50,376		8,358		(33,041	)	120,417		(10,122	)
Reinvested capital gains		–		–		–		19,114		372		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	1,168,388		159,566		27,134		74,013		23,170		15,262		147,110		(6,134	)

(Continued)

11

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:		NVITGrowth2		NVITFHiInc		NVITFHiInc3		NVITEmMrkts		NVITEmMrkts3		NVITGlUtl		NVITIntGro		NVITGlFin
Reinvested dividends	$	8,104		16,747		50,813		20,439		37,463		58,318		9,978		30,215
Mortality and expense risk charges (note 3)		(6,992	)	(968	)	(3,404	)	(20,663	)	(26,290	)	(16,023	)	(18,246	)	(5,701	)
Net investment income (loss)		1,112		15,779		47,409		(224	)	11,173		42,295		(8,268	)	24,514
Proceeds from mutual fund shares sold		204,064		62,990		403,234		530,602		1,680,633		1,585,161		2,656,143		409,125
Cost of mutual fund shares sold		(173,600	)	(62,741	)	(409,618	)	(281,448	)	(1,187,362	)	(1,297,810	)	(2,215,451	)	(403,776	)
Realized gain (loss) on investments		30,464		249		(6,384	)	249,154		493,271		287,351		440,692		5,349
Change in unrealized gain (loss) on investments		67,722		(9,291	)	(35,536	)	491,434		741,466		(356,418	)	(153,096	)	(173,066	)
Net gain (loss) on investments		98,186		(9,042	)	(41,920	)	740,588		1,234,737		(69,067	)	287,596		(167,717	)
Reinvested capital gains		352		–		–		301,255		488,860		421,869		203,237		127,951
Net increase (decrease) in contract owners’ equity resulting from operations	$	99,650		6,737		5,489		1,041,619		1,734,770		395,097		482,565		(15,252	)
Investment activity:		NVITGlHlth		NVITGlHlth3		NVITGlTech		NVITGlTech3		NVITGvtBd		NVITGrowth		NVITIntIdx6		NVITIntValI
Reinvested dividends	$	345		417		–		–		497,772		29,788		3,899		16,267
Mortality and expense risk charges (note 3)		(3,218	)	(2,447	)	(3,531	)	(2,437	)	(66,924	)	(113,009	)	(1,251	)	(4,379	)
Net investment income (loss)		(2,873	)	(2,030	)	(3,531	)	(2,437	)	430,848		(83,221	)	2,648		11,888
Proceeds from mutual fund shares sold		91,233		354,938		134,120		164,517		2,260,546		2,032,839		9,610		237,355
Cost of mutual fund shares sold		(85,169	)	(337,040	)	(93,975	)	(134,730	)	(2,431,785	)	(3,842,896	)	(7,454	)	(195,010	)
Realized gain (loss) on investments		6,064		17,898		40,145		29,787		(171,239	)	(1,810,057	)	2,156		42,345
Change in unrealized gain (loss) on investments		40,103		24,158		55,567		28,926		444,552		4,820,907		5,211		(84,773	)
Net gain (loss) on investments		46,167		42,056		95,712		58,713		273,313		3,010,850		7,367		(42,428	)
Reinvested capital gains		8,521		8,113		–		–		–		–		543		55,037
Net increase (decrease) in contract owners’ equity resulting from operations	$	51,815		48,139		92,181		56,276		704,161		2,927,629		10,558		24,497

(Continued)

12

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:		NVITIntVal3		NVITIDAgg2		NVITIDCon2		NVITIDMod2		NVITIDModAg2		NVITIDModCon2		NVITMdCpGr		NVITMidCap
Reinvested dividends	$	48,651		85,275		24,477		193,841		169,990		73,275		–		98,801
Mortality and expense risk charges (note 3)		(12,359	)	(24,917	)	(3,881	)	(40,657	)	(46,009	)	(18,649	)	(8,719	)	(40,733	)
Net investment income (loss)		36,292		60,358		20,596		153,184		123,981		54,626		(8,719	)	58,068
Proceeds from mutual fund shares sold		491,026		625,039		324,847		2,203,109		1,426,472		1,841,540		600,219		1,727,404
Cost of mutual fund shares sold		(410,502	)	(516,681	)	(319,421	)	(1,838,832	)	(1,123,539	)	(1,701,161	)	(395,608	)	(1,148,739	)
Realized gain (loss) on investments		80,524		108,358		5,426		364,277		302,933		140,379		204,611		578,665
Change in unrealized gain (loss) on investments		(227,805	)	(142,271	)	(7,091	)	(250,262	)	(198,904	)	(125,658	)	(66,657	)	(339,345	)
Net gain (loss) on investments		(147,281	)	(33,913	)	(1,665	)	114,015		104,029		14,721		137,954		239,320
Reinvested capital gains		158,785		143,661		12,858		112,849		149,917		60,436		–		212,900
Net increase (decrease) in contract owners’ equity resulting from operations	$	47,796		170,106		31,789		380,048		377,927		129,783		129,235		510,288
Investment activity:		NVITMyMkt		NVITSmCapGr		NVITSmCapVal		NVITSmComp		NVITNWFund		NVITNWLead		NVITUSGro		NVITVKVal
Reinvested dividends	$	1,473,769		–		120,810		26,489		822,045		7,953		–		17,742
Mortality and expense risk charges (note 3)		(173,543	)	(8,972	)	(58,741	)	(167,158	)	(505,231	)	(3,697	)	(4,206	)	(5,382	)
Net investment income (loss)		1,300,226		(8,972	)	62,069		(140,669	)	316,814		4,256		(4,206	)	12,360
Proceeds from mutual fund shares sold		23,889,368		612,903		3,933,491		4,508,335		8,198,880		176,505		451,088		369,337
Cost of mutual fund shares sold		(23,889,368	)	(571,470	)	(3,844,342	)	(3,462,290	)	(11,139,266	)	(166,634	)	(437,393	)	(324,840	)
Realized gain (loss) on investments		–		41,433		89,149		1,046,045		(2,940,386	)	9,871		13,695		44,497
Change in unrealized gain (loss) on investments		–		88,470		(2,150,010	)	(4,422,642	)	4,596,818		(52,502	)	140,753		(124,443	)
Net gain (loss) on investments		–		129,903		(2,060,861	)	(3,376,597	)	1,656,432		(42,631	)	154,448		(79,946	)
Reinvested capital gains		–		–		1,325,777		4,100,839		3,721,687		109,742		–		44,501
Net increase (decrease) in contract owners’ equity resulting from operations	$	1,300,226		120,931		(673,015	)	583,573		5,694,933		71,367		150,242		(23,085	)

(Continued)

13

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:		NVITMltSec		NBTBal		NBTAFasc		NBTAGro		NBTAGuard		NBTAInt		NBTAMCGrS		NBTAPart
Reinvested dividends	$	61,169		746		–		–		5,093		7,567		–		178,199
Mortality and expense risk charges (note 3)		(8,885	)	(540	)	(597	)	(119,531	)	(11,677	)	(2,278	)	(4,448	)	(152,561	)
Net investment income (loss)		52,284		206		(597	)	(119,531	)	(6,584	)	5,289		(4,448	)	25,638
Proceeds from mutual fund shares sold		470,582		158,188		117,561		2,597,244		361,596		97,373		484,107		2,980,939
Cost of mutual fund shares sold		(477,009	)	(139,043	)	(115,865	)	(1,164,217	)	(220,860	)	(79,800	)	(397,786	)	(2,121,564	)
Realized gain (loss) on investments		(6,427	)	19,145		1,696		1,433,027		140,736		17,573		86,321		859,375
Change in unrealized gain (loss) on investments		12,993		515		(2,811	)	2,424,218		(6,334	)	(42,678	)	57,288		(1,353,429	)
Net gain (loss) on investments		6,566		19,660		(1,115	)	3,857,245		134,402		(25,105	)	143,609		(494,054	)
Reinvested capital gains		73		–		757		–		–		27,077		–		2,788,543
Net increase (decrease) in contract owners’ equity resulting from operations	$	58,923		19,866		(955	)	3,737,714		127,818		7,261		139,161		2,320,127
Investment activity:		NBTARegS		NBTSocRes		OppBal		OppCapAp		OppBdFd		OppGlSec3		OppGlSec		OppHighInc3
Reinvested dividends	$	1,751		429		343,427		25,388		584,983		98,713		474,725		–
Mortality and expense risk charges (note 3)		(1,132	)	(2,546	)	(82,654	)	(67,670	)	(60,074	)	(45,691	)	(204,699	)	(302	)
Net investment income (loss)		619		(2,117	)	260,773		(42,282	)	524,909		53,022		270,026		(302	)
Proceeds from mutual fund shares sold		228,816		205,146		2,219,469		2,456,759		2,049,550		898,899		6,613,068		2,431
Cost of mutual fund shares sold		(229,107	)	(169,086	)	(2,194,819	)	(1,509,042	)	(1,975,446	)	(714,342	)	(4,000,494	)	(2,511	)
Realized gain (loss) on investments		(291	)	36,060		24,650		947,717		74,104		184,557		2,612,574		(80	)
Change in unrealized gain (loss) on investments		(9,805	)	(5,060	)	(925,301	)	489,293		(188,237	)	(204,740	)	(2,586,681	)	(3,193	)
Net gain (loss) on investments		(10,096	)	31,000		(900,651	)	1,437,010		(114,133	)	(20,183	)	25,893		(3,273	)
Reinvested capital gains		11,358		1,612		1,074,036		–		–		359,391		1,725,651		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	1,881		30,495		434,158		1,394,728		410,776		392,230		2,021,570		(3,575	)

(Continued)

14

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:		OppHighInc		OppMStSCap		OppMSt		OppMidCap		PVTGroInc		PVTIntlEq		PVTVoygr		TRoeBlChip2
Reinvested dividends	$	45,481		4,279		21,148		–		1,506		12,504		–		567
Mortality and expense risk charges (note 3)		(3,667	)	(7,444	)	(10,126	)	(9,076	)	(696	)	(2,769	)	(267	)	(2,417	)
Net investment income (loss)		41,814		(3,165	)	11,022		(9,076	)	810		9,735		(267	)	(1,850	)
Proceeds from mutual fund shares sold		1,077,234		359,316		736,396		586,964		8,962		85,717		19,911		715,098
Cost of mutual fund shares sold		(1,084,172	)	(351,262	)	(558,136	)	(470,669	)	(9,053	)	(65,418	)	(16,488	)	(652,932	)
Realized gain (loss) on investments		(6,938	)	8,054		178,260		116,295		(91	)	20,299		3,423		62,166
Change in unrealized gain (loss) on investments		(38,746	)	(76,840	)	(99,839	)	(10,721	)	(25,028	)	(53,099	)	917		(20,940	)
Net gain (loss) on investments		(45,684	)	(68,786	)	78,421		105,574		(25,119	)	(32,800	)	4,340		41,226
Reinvested capital gains		–		45,630		–		–		17,302		54,130		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	(3,870	)	(26,321	)	89,443		96,498		(7,007	)	31,065		4,073		39,376
Investment activity:		TRowEqInc2		TRowLtdTBd2		DrySRGro		VEWrldBd		VEWrldEMkt		VEWrldHAs		VKUCorPlus		VKUEmMkt
Reinvested dividends	$	23,154		9,051		45,684		167,502		54,597		15,105		12,373		184,643
Mortality and expense risk charges (note 3)		(8,475	)	(1,139	)	(56,119	)	(18,953	)	(71,571	)	(79,210	)	(2,365	)	(11,833	)
Net investment income (loss)		14,679		7,912		(10,435	)	148,549		(16,974	)	(64,105	)	10,008		172,810
Proceeds from mutual fund shares sold		541,090		290,955		919,421		681,053		3,411,793		3,542,554		419,036		964,037
Cost of mutual fund shares sold		(484,751	)	(288,816	)	(1,203,279	)	(743,635	)	(1,773,105	)	(1,839,394	)	(416,487	)	(1,005,622	)
Realized gain (loss) on investments		56,339		2,139		(283,858	)	(62,582	)	1,638,688		1,703,160		2,549		(41,585	)
Change in unrealized gain (loss) on investments		(144,478	)	2,506		885,971		154,431		82,871		1,644,501		8,225		(66,085	)
Net gain (loss) on investments		(88,139	)	4,645		602,113		91,849		1,721,559		3,347,661		10,774		(107,670	)
Reinvested capital gains		90,216		–		–		–		2,156,585		1,473,529		–		78,893
Net increase (decrease) in contract owners’ equity resulting from operations	$	16,756		12,557		591,678		240,398		3,861,170		4,757,085		20,782		144,033

(Continued)

15

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:		VKUUSRE		WFVDisc		WFVOpp
Reinvested dividends	$	253,725		–		205,981
Mortality and expense risk charges (note 3)		(138,412	)	(51,938	)	(205,408	)
Net investment income (loss)		115,313		(51,938	)	573
Proceeds from mutual fund shares sold		8,314,603		1,310,106		4,906,176
Cost of mutual fund shares sold		(4,375,496	)	(663,611	)	(4,812,965	)
Realized gain (loss) on investments		3,939,107		646,495		93,211
Change in unrealized gain (loss) on investments		(9,669,937	)	1,097,061		(2,882,045	)
Net gain (loss) on investments		(5,730,830	)	1,743,556		(2,788,834	)
Reinvested capital gains		1,981,393		–		4,826,981
Net increase (decrease) in contract owners’ equity resulting from operations	$	(3,634,124	)	1,691,618		2,038,720

See accompanying notes to financial statements.

16

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2007 and 2006

		Total				AIMBValue				AIMCapAp				AIMCapDev
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	10,052,590		8,458,577		(876	)	(340	)	(853	)	(518	)	(2,516	)	(2,227	)
Realized gain (loss) on investments		28,868,776		15,670,805		121,736		34,978		12,610		9,324		24,147		44,552
Change in unrealized gain (loss) on investments		1,175,696		59,883,124		(153,770	)	26,733		4,289		(2,526	)	(31,006	)	(2,722	)
Reinvested capital gains		59,266,158		33,553,421		51,237		55,210		–		–		51,509		6,748
Net increase (decrease) in contract owners’ equity resulting from operations		99,363,220		117,565,927		18,327		116,581		16,046		6,280		42,134		46,351
Equity transactions:
Purchase payments received from contract owners (note 6)		55,497,734		57,002,649		57,807		53,182		2,406		1,925		18,311		20,007
Transfers between funds		–		–		(423,267	)	423,535		291,250		(18,532	)	243,796		113,190
Surrenders (note 6)		(68,359,807	)	(69,702,501	)	(48,933	)	(14,004	)	(1,849	)	(1,854	)	(32,818	)	(3,655	)
Death benefits (note 4)		(5,434,611	)	(5,384,769	)	(2,325	)	(1,660	)	–		–		–		(821	)
Net policy repayments (loans) (note 5)		(4,131,238	)	(3,089,028	)	2,583		(24,667	)	(13,302	)	31		5		(4,123	)
Deductions for surrender charges (note 2d)		(145,897	)	(622,220	)	–		(22	)	–		–		–		(808	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(44,157,865	)	(44,413,062	)	(33,736	)	(30,050	)	(6,562	)	(4,257	)	(19,916	)	(16,711	)
Asset charges (note 3):
MSP contracts		(443,125	)	(424,218	)	(24	)	(19	)	(62	)	(35	)	(191	)	(72	)
LSFP contracts		(477,048	)	(461,922	)	(133	)	(118	)	–		–		(272	)	(231	)
Adjustments to maintain reserves		63,926		956,504		14		(26	)	25		18		27		22
Net equity transactions		(67,587,931	)	(66,138,567	)	(448,014	)	406,151		271,906		(22,704	)	208,942		106,798
Net change in contract owners’ equity		31,775,289		51,427,360		(429,687	)	522,732		287,952		(16,424	)	251,076		153,149
Contract owners’ equity beginning of period		980,827,120		929,399,760		1,324,164		801,432		68,206		84,630		396,749		243,600
Contract owners’ equity end of period	$	1,012,602,409		980,827,120		894,477		1,324,164		356,158		68,206		647,825		396,749
CHANGES IN UNITS:
Beginning units		39,194,736		40,704,624		77,830		53,106		4,562		5,992		21,102		15,036
Units purchased		9,576,655		10,587,187		3,057		32,232		18,196		2,692		14,928		10,145
Units redeemed		(11,003,143	)	(12,097,075	)	(28,863	)	(7,508	)	(1,448	)	(4,122	)	(4,854	)	(4,079	)
Ending units		37,768,248		39,194,736		52,024		77,830		21,310		4,562		31,176		21,102

(Continued)

17

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		AlVGrIncA				AlVSmMdCpA				ACVPBal				ACVPCapAp
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	11,944		9,548		7,003		(2,225	)	75,210		68,582		(113,921	)	(96,111	)
Realized gain (loss) on investments		60,046		35,576		119,287		30,805		96,911		34,165		807,049		330,891
Change in unrealized gain (loss) on investments		(79,613	)	53,118		(219,358	)	46,899		(207,365	)	7,456		5,759,766		1,928,710
Reinvested capital gains		56,897		52,880		111,212		70,543		258,071		343,547		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		49,274		151,122		18,144		146,022		222,827		453,750		6,452,894		2,163,490
Equity transactions:
Purchase payments received from contract owners (note 6)		92,686		115,628		101,090		90,901		247,508		327,424		820,317		765,972
Transfers between funds		(97,308	)	22,114		(164,777	)	63,950		(281,095	)	(442,403	)	1,808,115		(211,697	)
Surrenders (note 6)		(113,037	)	(103,010	)	(54,820	)	(31,726	)	(238,164	)	(394,033	)	(1,226,171	)	(1,198,454	)
Death benefits (note 4)		–		–		–		–		(12,260	)	(12,437	)	(105,352	)	(165,926	)
Net policy repayments (loans) (note 5)		(3,921	)	(13,854	)	(22,625	)	(27,219	)	(11,028	)	(52,335	)	(21,094	)	(94,347	)
Deductions for surrender charges (note 2d)		–		(1,956	)	–		(1,877	)	(433	)	(3,701	)	(983	)	(3,610	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(35,072	)	(35,794	)	(51,287	)	(38,224	)	(233,628	)	(246,231	)	(822,833	)	(767,284	)
Asset charges (note 3):
MSP contracts		(1,045	)	(1,147	)	(515	)	(334	)	(4,305	)	(4,975	)	(7,062	)	(5,771	)
LSFP contracts		(1,796	)	(1,365	)	(319	)	(129	)	(1,120	)	(1,147	)	(2,664	)	(2,500	)
Adjustments to maintain reserves		2		34		2		106		42		822		58,330		126,244
Net equity transactions		(159,491	)	(19,350	)	(193,251	)	55,448		(534,483	)	(829,016	)	500,603		(1,557,373	)
Net change in contract owners’ equity		(110,217	)	131,772		(175,107	)	201,470		(311,656	)	(375,266	)	6,953,497		606,117
Contract owners’ equity beginning of period		1,062,918		931,146		1,223,447		1,021,977		5,019,451		5,394,717		14,557,959		13,951,842
Contract owners’ equity end of period	$	952,701		1,062,918		1,048,340		1,223,447		4,707,795		5,019,451		21,511,456		14,557,959
CHANGES IN UNITS:
Beginning units		63,416		64,958		62,084		59,044		225,298		264,940		607,730		720,786
Units purchased		12,276		13,974		9,288		14,297		32,345		27,737		177,481		104,513
Units redeemed		(21,532	)	(15,516	)	(18,934	)	(11,257	)	(56,223	)	(67,379	)	(145,159	)	(217,569	)
Ending units		54,160		63,416		52,438		62,084		201,420		225,298		640,052		607,730

(Continued)

18

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		ACVPIncGr				ACVPInflPro2				ACVPInt				ACVPInt3
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	45,049		44,231		32,661		25,187		12,521		101,478		1,572		11,159
Realized gain (loss) on investments		510,852		255,013		(9,949	)	(8,698	)	1,422,909		854,426		59,952		267,118
Change in unrealized gain (loss) on investments		(556,432	)	243,170		48,315		(8,024	)	148,771		1,225,587		350,687		148,652
Reinvested capital gains		–		–		–		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		(531	)	542,414		71,027		8,465		1,584,201		2,181,491		412,211		426,929
Equity transactions:
Purchase payments received from contract owners (note 6)		133,766		137,970		35,325		35,285		26,424		10,447		442,168		565,664
Transfers between funds		(409,736	)	(164,490	)	36,554		(107,852	)	(738,490	)	(861,287	)	824,237		(106,353	)
Surrenders (note 6)		(218,369	)	(308,975	)	(52,612	)	(180,674	)	(1,237,535	)	(581,619	)	(352,754	)	(220,922	)
Death benefits (note 4)		(32,341	)	(10,551	)	(3,138	)	(316	)	(59,007	)	(12,907	)	(7,370	)	(872	)
Net policy repayments (loans) (note 5)		(56,271	)	46,341		(11,805	)	(24,236	)	(133,378	)	(124,163	)	179,491		83,718
Deductions for surrender charges (note 2d)		(398	)	(5,700	)	–		(2,081	)	(1,611	)	(7,053	)	(245	)	(1,813	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(137,906	)	(148,138	)	(30,268	)	(38,167	)	(340,495	)	(374,063	)	(123,406	)	(91,911	)
Asset charges (note 3):
MSP contracts		(2,763	)	(2,367	)	(810	)	(873	)	(2,803	)	(2,785	)	(475	)	(731	)
LSFP contracts		(1,023	)	(977	)	(673	)	(474	)	(5,027	)	(5,694	)	(2,018	)	(1,311	)
Adjustments to maintain reserves		21		42		(117	)	160		70		85		5		64
Net equity transactions		(725,020	)	(456,845	)	(27,544	)	(319,228	)	(2,491,852	)	(1,959,039	)	959,633		225,533
Net change in contract owners’ equity		(725,551	)	85,569		43,483		(310,763	)	(907,651	)	222,452		1,371,844		652,462
Contract owners’ equity beginning of period		3,723,774		3,638,205		863,816		1,174,579		10,207,189		9,984,737		2,206,347		1,553,885
Contract owners’ equity end of period	$	2,998,223		3,723,774		907,299		863,816		9,299,538		10,207,189		3,578,191		2,206,347
CHANGES IN UNITS:
Beginning units		261,470		297,572		78,218		107,722		455,896		549,068		152,658		133,622
Units purchased		22,872		54,380		35,571		11,699		73,717		88,332		110,858		56,124
Units redeemed		(74,400	)	(90,482	)	(38,703	)	(41,203	)	(157,955	)	(181,504	)	(52,954	)	(37,088	)
Ending units		209,942		261,470		75,086		78,218		371,658		455,896		210,562		152,658

(Continued)

19

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		ACVPMdCpV				ACVPUltra				ACVPVal				ACVPVista1
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	1,360		2,538		(3,189	)	(3,185	)	151,359		104,468		(3,330	)	(260	)
Realized gain (loss) on investments		40,686		20,373		8,692		13,937		635,161		688,599		70,230		719
Change in unrealized gain (loss) on investments		(94,273	)	10,804		110,894		(32,309	)	(2,727,985	)	242,399		86,032		1,061
Reinvested capital gains		13,080		18,160		–		–		1,203,357		1,177,539		–		117
Net increase (decrease) in contract owners’ equity resulting from operations		(39,147	)	51,875		116,397		(21,557	)	(738,108	)	2,213,005		152,932		1,637
Equity transactions:
Purchase payments received from contract owners (note 6)		64,969		31,883		17,833		30,683		576,999		608,706		58,493		2,572
Transfers between funds		550,648		496,403		374,123		(188,618	)	(983,577	)	(140,596	)	1,616,035		10,306
Surrenders (note 6)		(45,347	)	(1,559	)	(24,736	)	(14,930	)	(877,514	)	(902,976	)	(794	)	–
Death benefits (note 4)		(4,306	)	–		–		–		(51,631	)	(8,081	)	–		–
Net policy repayments (loans) (note 5)		(7,193	)	1,333		(15,111	)	(14,299	)	(151,157	)	(66,301	)	(30,428	)	(29	)
Deductions for surrender charges (note 2d)		–		–		–		(61	)	(3,386	)	(6,367	)	–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(45,230	)	(9,282	)	(24,268	)	(22,383	)	(492,229	)	(499,627	)	(26,363	)	(2,566	)
Asset charges (note 3):
MSP contracts		(576	)	(227	)	(335	)	(345	)	(8,495	)	(7,479	)	(187	)	–
LSFP contracts		(215	)	(158	)	(415	)	(602	)	(7,460	)	(8,181	)	(327	)	–
Adjustments to maintain reserves		51		(4	)	(10	)	16		(22	)	1,797		(6	)	31
Net equity transactions		512,801		518,389		327,081		(210,539	)	(1,998,472	)	(1,029,105	)	1,616,423		10,314
Net change in contract owners’ equity		473,654		570,264		443,478		(232,096	)	(2,736,580	)	1,183,900		1,769,355		11,951
Contract owners’ equity beginning of period		673,721		103,457		538,896		770,992		14,674,701		13,490,801		41,012		29,061
Contract owners’ equity end of period	$	1,147,375		673,721		982,374		538,896		11,938,121		14,674,701		1,810,367		41,012
CHANGES IN UNITS:
Beginning units		49,904		9,176		50,294		69,460		569,670		616,380		3,316		2,548
Units purchased		51,251		41,564		37,950		7,963		107,240		145,948		105,829		2,998
Units redeemed		(13,693	)	(836	)	(12,198	)	(27,129	)	(187,720	)	(192,658	)	(4,039	)	(2,230	)
Ending units		87,462		49,904		76,046		50,294		489,190		569,670		105,106		3,316

(Continued)

20

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		CSTGlobSmCp				CSTIntFoc				CSTSmCapGr				DryIPSmCap
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(5,020	)	(6,024	)	41,566		31,381		(63,195	)	(78,172	)	(3,385	)	(4,383	)
Realized gain (loss) on investments		108,670		138,726		652,817		513,060		684,930		996,247		168,213		169,056
Change in unrealized gain (loss) on investments		(126,367	)	(20,240	)	457,108		651,016		(729,126	)	(366,875	)	(260,015	)	45,191
Reinvested capital gains		–		–		–		–		–		–		80,999		43,700
Net increase (decrease) in contract owners’ equity resulting from operations		(22,717	)	112,462		1,151,491		1,195,457		(107,391	)	551,200		(14,188	)	253,564
Equity transactions:
Purchase payments received from contract owners (note 6)		40,676		47,889		317,248		377,303		689,357		775,675		101,584		117,090
Transfers between funds		(77,335	)	(48,464	)	(723,999	)	(150,794	)	(629,296	)	(1,026,283	)	(137,368	)	21,029
Surrenders (note 6)		(154,047	)	(64,785	)	(400,777	)	(482,407	)	(853,637	)	(1,029,079	)	(203,532	)	(189,949	)
Death benefits (note 4)		(15,380	)	(28,137	)	(33,962	)	(57,139	)	(25,797	)	(25,938	)	(6,109	)	–
Net policy repayments (loans) (note 5)		40,474		8,868		(46,279	)	(56,763	)	68,471		(5,522	)	(35,405	)	(5,330	)
Deductions for surrender charges (note 2d)		(105	)	(1,512	)	(352	)	(7,246	)	(630	)	(18,438	)	–		(26	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(32,438	)	(44,982	)	(324,550	)	(328,515	)	(530,735	)	(613,043	)	(76,070	)	(79,874	)
Asset charges (note 3):
MSP contracts		(471	)	(719	)	(4,522	)	(4,257	)	(3,662	)	(3,915	)	(1,925	)	(2,052	)
LSFP contracts		(929	)	(976	)	(6,224	)	(6,344	)	(7,369	)	(9,076	)	(1,922	)	(1,800	)
Adjustments to maintain reserves		47		22		52		172		(92	)	262		51		(58	)
Net equity transactions		(199,508	)	(132,796	)	(1,223,365	)	(715,990	)	(1,293,390	)	(1,955,357	)	(360,696	)	(140,970	)
Net change in contract owners’ equity		(222,225	)	(20,334	)	(71,874	)	479,467		(1,400,781	)	(1,404,157	)	(374,884	)	112,594
Contract owners’ equity beginning of period		937,897		958,231		7,634,180		7,154,713		11,363,068		12,767,225		2,147,852		2,035,258
Contract owners’ equity end of period	$	715,672		937,897		7,562,306		7,634,180		9,962,287		11,363,068		1,772,968		2,147,852
CHANGES IN UNITS:
Beginning units		61,072		67,546		469,340		517,716		653,228		757,296		139,398		150,290
Units purchased		11,044		13,854		95,551		166,651		132,562		172,749		14,762		36,205
Units redeemed		(21,986	)	(20,328	)	(161,879	)	(215,027	)	(195,174	)	(276,817	)	(37,922	)	(47,097	)
Ending units		50,130		61,072		403,012		469,340		590,616		653,228		116,238		139,398

(Continued)

21

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		DryStkIx				DryVApp				DryVDevLd				DryVGroInc
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	847,047		789,532		58,121		48,818		561		(711	)	4,949		3,586
Realized gain (loss) on investments		14,949		(629,731	)	393,679		435,347		1,530		4,376		78,485		1,109
Change in unrealized gain (loss) on investments		2,668,625		10,398,460		(74,888	)	398,055		(63,224	)	(33,937	)	(14,780	)	285,427
Reinvested capital gains		–		–		–		–		37,460		37,304		107,884		–
Net increase (decrease) in contract owners’ equity resulting from operations		3,530,621		10,558,261		376,912		882,220		(23,673	)	7,032		176,538		290,122
Equity transactions:
Purchase payments received from contract owners (note 6)		3,670,007		4,144,765		272,701		312,847		21,945		31,506		123,182		128,783
Transfers between funds		(3,139,761	)	(3,413,229	)	(670,433	)	(325,424	)	(102,081	)	9,961		(77,069	)	5,480
Surrenders (note 6)		(6,154,095	)	(6,390,077	)	(312,989	)	(208,368	)	(47,261	)	(83,602	)	(103,244	)	(208,235	)
Death benefits (note 4)		(412,680	)	(337,394	)	(17,316	)	(3,569	)	–		(122	)	–		(88,276	)
Net policy repayments (loans) (note 5)		213,150		(609,188	)	(1,192	)	(60,634	)	(9,423	)	(5,510	)	(19,680	)	3,442
Deductions for surrender charges (note 2d)		(18,138	)	(52,509	)	(1,254	)	(6,416	)	(432	)	(165	)	(599	)	(3,525	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(3,229,990	)	(3,403,423	)	(215,276	)	(234,430	)	(17,251	)	(23,256	)	(116,217	)	(119,441	)
Asset charges (note 3):
MSP contracts		(29,838	)	(29,388	)	(1,061	)	(1,107	)	(19	)	(118	)	(1,663	)	(1,590	)
LSFP contracts		(62,431	)	(65,134	)	(6,678	)	(6,453	)	(48	)	(366	)	(3,507	)	(2,824	)
Adjustments to maintain reserves		(572	)	4,280		56		221		(42	)	3		(46	)	95
Net equity transactions		(9,164,348	)	(10,151,297	)	(953,442	)	(533,333	)	(154,612	)	(71,669	)	(198,843	)	(286,091	)
Net change in contract owners’ equity		(5,633,727	)	406,964		(576,530	)	348,887		(178,285	)	(64,637	)	(22,305	)	4,031
Contract owners’ equity beginning of period		76,355,443		75,948,479		6,134,082		5,785,195		373,040		437,677		2,314,371		2,310,340
Contract owners’ equity end of period	$	70,721,716		76,355,443		5,557,552		6,134,082		194,755		373,040		2,292,066		2,314,371
CHANGES IN UNITS:
Beginning units		2,637,338		2,948,454		401,382		420,248		24,156		29,256		155,594		177,166
Units purchased		462,178		533,365		49,115		117,685		3,339		6,692		42,891		24,311
Units redeemed		(769,940	)	(844,481	)	(106,413	)	(136,551	)	(13,221	)	(11,792	)	(57,679	)	(45,883	)
Ending units		2,329,576		2,637,338		344,084		401,382		14,274		24,156		140,806		155,594

(Continued)

22

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		FedAmLead				FedCapAp				FedMrkOp			FedQualBd
Investment activity:		2007		2006		2007		2006		2007		2006	2007		2006
Net investment income (loss)	$	1,857		1,651		(8	)	46		4		–	56,135		37,075
Realized gain (loss) on investments		(3,047	)	(74	)	1,720		5,377		(57	)	–	(23,235	)	(24,945	)
Change in unrealized gain (loss) on investments		(37,768	)	3,883		(1,071	)	(973	)	27		–	25,413		38,596
Reinvested capital gains		21,161		22,481		–		–		–		–	–		–
Net increase (decrease) in contract owners’ equity resulting from operations		(17,797	)	27,941		641		4,450		(26	)	–	58,313		50,726
Equity transactions:
Purchase payments received from contract owners (note 6)		5,363		4,941		562		2,133		140		–	50,537		78,133
Transfers between funds		(49,599	)	13,529		4,043		(17,732	)	3,406		–	(90,971	)	205,525
Surrenders (note 6)		–		(17,795	)	(882	)	(1,014	)	–		–	(31,850	)	(57,324	)
Death benefits (note 4)		–		–		–		–		–		–	(13,509	)	(863	)
Net policy repayments (loans) (note 5)		–		–		870		(2,459	)	–		–	(21,626	)	(13,410	)
Deductions for surrender charges (note 2d)		–		–		–		–		–		–	(269	)	(261	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(4,408	)	(4,261	)	(386	)	(1,329	)	(154	)	–	(60,951	)	(69,013	)
Asset charges (note 3):
MSP contracts		–		–		–		–		–		–	(1,680	)	(1,682	)
LSFP contracts		(43	)	(47	)	–		–		–		–	(412	)	(379	)
Adjustments to maintain reserves		(45	)	29		(8	)	(2	)	21		–	37		3
Net equity transactions		(48,732	)	(3,604	)	4,199		(20,403	)	3,413		–	(170,694	)	140,729
Net change in contract owners’ equity		(66,529	)	24,337		4,840		(15,953	)	3,387		–	(112,381	)	191,455
Contract owners’ equity beginning of period		202,845		178,508		9,499		25,452		–		–	1,360,658		1,169,203
Contract owners’ equity end of period	$	136,316		202,845		14,339		9,499		3,387		–	1,248,277		1,360,658
CHANGES IN UNITS:
Beginning units		12,188		12,490		638		1,960		–		–	113,684		100,922
Units purchased		434		3,461		325		458		353		–	14,666		47,356
Units redeemed		(3,494	)	(3,763	)	(83	)	(1,780	)	(19	)	–	(28,798	)	(34,594	)
Ending units		9,128		12,188		880		638		334		–	99,552		113,684

(Continued)

23

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		FidVIPEI				FidVIPGr				FidVIPHI				FidVIPHIR
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	927,168		2,018,674		172,894		(210,949	)	1,208,463		1,380,815		130,249		–
Realized gain (loss) on investments		1,361,670		(376,266	)	(937,536	)	(3,385,408	)	(179,956	)	(302,665	)	(4,444	)	–
Change in unrealized gain (loss) on investments		(7,496,224	)	2,830,737		20,372,292		8,485,090		(589,939	)	869,670		(133,142	)	–
Reinvested capital gains		6,185,875		9,044,526		75,097		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		978,489		13,517,671		19,682,747		4,888,733		438,568		1,947,820		(7,337	)	–
Equity transactions:
Purchase payments received from contract owners (note 6)		3,345,212		3,692,252		5,096,379		5,488,181		461,252		1,001,448		615,225		–
Transfers between funds		(835,153	)	(1,100,538	)	(2,056,318	)	(5,811,691	)	(2,976,142	)	780,432		1,026,834		–
Surrenders (note 6)		(4,740,013	)	(6,003,272	)	(5,366,336	)	(5,709,362	)	(1,034,168	)	(1,783,680	)	(184,653	)	–
Death benefits (note 4)		(688,300	)	(613,030	)	(434,382	)	(286,030	)	(303,082	)	(190,989	)	(2,404	)	–
Net policy repayments (loans) (note 5)		(363,676	)	(202,336	)	338,138		(585,121	)	(172,479	)	15,180		242,086		–
Deductions for surrender charges (note 2d)		(8,911	)	(37,613	)	(13,222	)	(41,734	)	(657	)	(15,389	)	(19	)	–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(3,367,164	)	(3,388,475	)	(4,194,506	)	(4,323,254	)	(785,072	)	(914,286	)	(77,612	)	–
Asset charges (note 3):
MSP contracts		(36,311	)	(36,652	)	(22,609	)	(21,734	)	(10,762	)	(12,781	)	(369	)	–
LSFP contracts		(28,153	)	(29,239	)	(28,479	)	(28,131	)	(8,257	)	(9,012	)	–		–
Adjustments to maintain reserves		(215	)	98,232		(5,751	)	294,974		(16	)	14,015		482		–
Net equity transactions		(6,722,684	)	(7,620,671	)	(6,687,086	)	(11,023,902	)	(4,829,383	)	(1,115,062	)	1,619,570		–
Net change in contract owners’ equity		(5,744,195	)	5,897,000		12,995,661		(6,135,169	)	(4,390,815	)	832,758		1,612,233		–
Contract owners’ equity beginning of period		79,366,129		73,469,129		78,764,241		84,899,410		19,958,228		19,125,470		–		–
Contract owners’ equity end of period	$	73,621,934		79,366,129		91,759,902		78,764,241		15,567,413		19,958,228		1,612,233		–
CHANGES IN UNITS:
Beginning units		1,852,320		2,082,710		2,405,354		2,764,316		819,864		865,500		–		–
Units purchased		217,529		340,139		331,094		423,537		55,028		186,842		178,928		–
Units redeemed		(399,363	)	(570,529	)	(506,886	)	(782,499	)	(221,922	)	(232,478	)	(15,348	)	–
Ending units		1,670,486		1,852,320		2,229,562		2,405,354		652,970		819,864		163,580		–

(Continued)

24

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		FidVIPOv				FidVIPOvSR				FidVIPAM				FidVIPCon
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	476,743		51,409		151,223		8,701		1,126,076		434,934		255,793		448,681
Realized gain (loss) on investments		1,598,468		1,488,094		323,040		326,549		(148,700	)	(342,324	)	2,101,789		1,897,820
Change in unrealized gain (loss) on investments		(557,205	)	1,075,141		(23,209	)	353,098		1,290,334		1,259,086		(9,286,236	)	(669,773	)
Reinvested capital gains		1,185,300		106,712		366,243		24,549		573,845		–		18,328,735		5,670,529
Net increase (decrease) in contract owners’ equity resulting from operations		2,703,306		2,721,356		817,297		712,897		2,841,555		1,351,696		11,400,081		7,347,257
Equity transactions:
Purchase payments received from contract owners (note 6)		(4,110	)	98,138		863,147		945,685		985,595		1,057,356		3,016,116		3,311,632
Transfers between funds		(880,656	)	(560,429	)	(124,894	)	1,375,984		(594,319	)	(1,314,025	)	(1,839,315	)	(287,965	)
Surrenders (note 6)		(1,020,631	)	(1,268,080	)	(603,929	)	(372,853	)	(1,330,995	)	(1,186,526	)	(3,919,910	)	(3,678,724	)
Death benefits (note 4)		(55,402	)	(58,159	)	(5,818	)	(2,678	)	(381,570	)	(219,592	)	(201,440	)	(161,026	)
Net policy repayments (loans) (note 5)		(176,753	)	(316,052	)	258,317		101,435		110,306		129,784		(426,311	)	(1,201,916	)
Deductions for surrender charges (note 2d)		(34	)	(12,157	)	(60	)	(752	)	(672	)	(4,100	)	(15,133	)	(43,786	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(520,895	)	(578,144	)	(314,836	)	(261,397	)	(854,572	)	(912,028	)	(2,679,960	)	(2,746,468	)
Asset charges (note 3):
MSP contracts		(6,114	)	(5,967	)	(985	)	(431	)	(6,246	)	(6,405	)	(28,893	)	(27,697	)
LSFP contracts		(9,752	)	(9,916	)	(3,861	)	(2,851	)	(3,966	)	(4,762	)	(37,323	)	(37,269	)
Adjustments to maintain reserves		(1,184	)	21,747		(8	)	65		(22	)	14,727		303		2,056
Net equity transactions		(2,675,531	)	(2,689,019	)	67,073		1,782,207		(2,076,461	)	(2,445,571	)	(6,131,866	)	(4,871,163	)
Net change in contract owners’ equity		27,775		32,337		884,370		2,495,104		765,094		(1,093,875	)	5,268,215		2,476,094
Contract owners’ equity beginning of period		17,276,378		17,244,041		5,158,362		2,663,258		20,287,358		21,381,233		70,901,911		68,425,817
Contract owners’ equity end of period	$	17,304,153		17,276,378		6,042,732		5,158,362		21,052,452		20,287,358		76,170,126		70,901,911
CHANGES IN UNITS:
Beginning units		643,078		745,818		353,120		213,864		809,630		915,956		2,222,974		2,281,934
Units purchased		32,409		87,006		104,148		188,205		81,680		74,849		391,794		664,564
Units redeemed		(126,217	)	(189,746	)	(102,850	)	(48,949	)	(168,184	)	(181,175	)	(572,424	)	(723,524	)
Ending units		549,270		643,078		354,418		353,120		723,126		809,630		2,042,344		2,222,974

(Continued)

25

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		FidVIPIGBdS				FidVIPGrOp				FidVIPMCapS				FidVIPVaIS
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	128,235		82,031		(26,879	)	1,943		14,529		(32,649	)	5,255		(2,137	)
Realized gain (loss) on investments		1,955		(17,203	)	342,984		114,590		397,690		545,254		112,161		(69,573	)
Change in unrealized gain (loss) on investments		607		53,613		569,338		67,686		90,453		(603,741	)	(237,678	)	102,652
Reinvested capital gains		–		6,072		–		–		879,087		1,019,980		196,544		183,028
Net increase (decrease) in contract owners’ equity resulting from operations		130,797		124,513		885,443		184,219		1,381,759		928,844		76,282		213,970
Equity transactions:
Purchase payments received from contract owners (note 6)		178,197		214,010		240,727		262,293		550,803		616,546		61,110		126,297
Transfers between funds		182,392		740,901		(105,380	)	(118,787	)	(92,253	)	1,052,459		(216,363	)	396,071
Surrenders (note 6)		(65,858	)	(279,429	)	(236,382	)	(343,652	)	(372,320	)	(596,579	)	(82,877	)	(178,270	)
Death benefits (note 4)		–		–		–		(9,295	)	(3,026	)	(36,060	)	(1,159	)	–
Net policy repayments (loans) (note 5)		(14,024	)	2,999		(67,773	)	12,016		(104,821	)	(85,500	)	(22,592	)	(11,845	)
Deductions for surrender charges (note 2d)		–		(3,097	)	(1,059	)	(7,002	)	(1,561	)	(2,905	)	–		(3,744	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(232,528	)	(150,448	)	(183,430	)	(180,221	)	(384,224	)	(362,880	)	(54,693	)	(51,174	)
Asset charges (note 3):
MSP contracts		(1,461	)	(1,205	)	(1,480	)	(1,332	)	(3,898	)	(3,391	)	(770	)	(688	)
LSFP contracts		(1,338	)	(1,284	)	(3,953	)	(3,481	)	(2,782	)	(2,580	)	(2,246	)	(1,036	)
Adjustments to maintain reserves		(24	)	49		44		(6	)	(329	)	(44	)	7		52
Net equity transactions		45,356		522,496		(358,686	)	(389,467	)	(414,411	)	579,066		(319,583	)	275,663
Net change in contract owners’ equity		176,153		647,009		526,757		(205,248	)	967,348		1,507,910		(243,301	)	489,633
Contract owners’ equity beginning of period		3,380,377		2,733,368		3,961,258		4,166,506		9,476,965		7,969,055		1,664,640		1,175,007
Contract owners’ equity end of period	$	3,556,530		3,380,377		4,488,015		3,961,258		10,444,313		9,476,965		1,421,339		1,664,640
CHANGES IN UNITS:
Beginning units		303,418		255,724		334,824		369,344		413,956		390,220		106,224		86,996
Units purchased		46,008		210,778		78,231		55,136		90,946		147,940		11,256		56,916
Units redeemed		(41,812	)	(163,084	)	(104,219	)	(89,656	)	(108,544	)	(124,204	)	(31,522	)	(37,688	)
Ending units		307,614		303,418		308,836		334,824		396,358		413,956		85,958		106,224

(Continued)

26

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		FidVIPEnergyS2				FidVIPFree10S				FidVIPFree20S				FidVIPFree30S
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(20,760	)	3,871		22,444		3,311		12,341		3,426		10,838		4,682
Realized gain (loss) on investments		178,169		118,582		9,267		2,880		38,688		2,207		10,950		356
Change in unrealized gain (loss) on investments		1,369,655		(346,483	)	(22,637	)	3,962		(17,734	)	23,797		(1,752	)	3,034
Reinvested capital gains		287,074		520,211		20,602		984		21,697		3,207		23,865		3,726
Net increase (decrease) in contract owners’ equity resulting from operations		1,814,138		296,181		29,676		11,137		54,992		32,637		43,901		11,798
Equity transactions:
Purchase payments received from contract owners (note 6)		236,470		309,550		25,341		4,333		23,421		4,049		21,416		9,134
Transfers between funds		1,516,011		1,941,205		753,886		176,255		397,528		69,862		323,165		306,056
Surrenders (note 6)		(149,865	)	(234,415	)	(2,014	)	(2,719	)	(30,647	)	–		(6,361	)	–
Death benefits (note 4)		(55,715	)	(1,509	)	–		–		–		–		–		–
Net policy repayments (loans) (note 5)		(64,753	)	(30,615	)	(3,356	)	(14,989	)	1,489		(244	)	(35,136	)	(17	)
Deductions for surrender charges (note 2d)		–		(1,539	)	–		–		–		–		–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(189,056	)	(144,256	)	(10,241	)	(4,612	)	(23,137	)	(9,774	)	(19,998	)	(4,493	)
Asset charges (note 3):
MSP contracts		(3,537	)	(1,954	)	(936	)	(385	)	(1,434	)	(586	)	–		–
LSFP contracts		(1,167	)	(626	)	–		–		–		–		–		–
Adjustments to maintain reserves		140		(8	)	4		(9	)	(2	)	20		40		4
Net equity transactions		1,288,528		1,835,833		762,684		157,874		367,218		63,327		283,126		310,684
Net change in contract owners’ equity		3,102,666		2,132,014		792,360		169,011		422,210		95,964		327,027		322,482
Contract owners’ equity beginning of period		3,978,811		1,846,797		232,838		63,827		360,829		264,865		365,511		43,029
Contract owners’ equity end of period	$	7,081,477		3,978,811		1,025,198		232,838		783,039		360,829		692,538		365,511
CHANGES IN UNITS:
Beginning units		254,880		137,232		19,770		5,924		29,288		23,914		28,804		3,818
Units purchased		123,855		139,698		72,628		15,820		42,255		7,475		26,460		25,371
Units redeemed		(65,871	)	(22,050	)	(11,814	)	(1,974	)	(13,639	)	(2,101	)	(5,926	)	(385	)
Ending units		312,864		254,880		80,584		19,770		57,904		29,288		49,338		28,804

(Continued)

27

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		FrVIPDevMrk3				FrVIPForSec				FrVIPForSec3				FrVIPGlInc3
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	38,311		7,050		17,453		10,254		33,983		10,356		22,019		3,397
Realized gain (loss) on investments		148,740		94,811		156,031		130,073		62,901		45,063		15,598		6,953
Change in unrealized gain (loss) on investments		177,835		160,456		(74,954	)	90,707		97,283		154,011		52,885		11,113
Reinvested capital gains		168,029		–		47,573		–		95,906		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		532,915		262,317		146,103		231,034		290,073		209,430		90,502		21,463
Equity transactions:
Purchase payments received from contract owners (note 6)		104,622		122,854		(188	)	4		142,842		144,772		32,923		6,095
Transfers between funds		939,170		742,462		(370,182	)	(191,796	)	843,210		643,714		1,255,440		318,410
Surrenders (note 6)		(101,367	)	(43,074	)	(30,370	)	(229,919	)	(73,968	)	(28,386	)	(1,941	)	(12,879	)
Death benefits (note 4)		–		–		(5,314	)	–		(1,414	)	–		–		–
Net policy repayments (loans) (note 5)		(19,847	)	(15,918	)	(10,707	)	(37,025	)	(27,364	)	(15,744	)	(4,789	)	(3,917	)
Deductions for surrender charges (note 2d)		(679	)	(362	)	(45	)	(1,941	)	(120	)	(22	)	–		(379	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(75,532	)	(45,872	)	(28,623	)	(35,042	)	(63,688	)	(38,367	)	(19,616	)	(5,582	)
Asset charges (note 3):
MSP contracts		(1,810	)	(1,169	)	(634	)	(558	)	(2,771	)	(2,294	)	(352	)	(45	)
LSFP contracts		(232	)	(162	)	(499	)	(695	)	(780	)	(613	)	(293	)	(44	)
Adjustments to maintain reserves		61		45		(10	)	56		57		(23	)	16		29
Net equity transactions		844,386		758,804		(446,572	)	(496,916	)	816,004		703,037		1,261,388		301,688
Net change in contract owners’ equity		1,377,301		1,021,121		(300,469	)	(265,882	)	1,106,077		912,467		1,351,890		323,151
Contract owners’ equity beginning of period		1,662,765		641,644		1,123,402		1,389,284		1,608,540		696,073		385,096		61,945
Contract owners’ equity end of period	$	3,040,066		1,662,765		822,933		1,123,402		2,714,617		1,608,540		1,736,986		385,096
CHANGES IN UNITS:
Beginning units		102,256		50,268		54,046		81,054		118,236		61,834		34,906		6,292
Units purchased		65,822		61,197		297		5,759		78,871		64,406		121,204		31,310
Units redeemed		(22,126	)	(9,209	)	(20,049	)	(32,767	)	(23,507	)	(8,004	)	(14,012	)	(2,696	)
Ending units		145,952		102,256		34,294		54,046		173,600		118,236		142,098		34,906

(Continued)

28

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		FrVIPIncSec2				FrVIPRisDiv				FrVIPSCapV1				JAspBal
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	23,825		(389	)	87,922		23,225		11,010		6,532		3,661		3,604
Realized gain (loss) on investments		13,833		1,010		236,056		79,445		121,458		252,240		42,047		3,914
Change in unrealized gain (loss) on investments		(35,376	)	15,388		(509,454	)	452,466		(487,268	)	116,649		(18,385	)	16,786
Reinvested capital gains		5,256		–		63,951		18,463		244,614		116,222		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		7,538		16,009		(121,525	)	573,599		(110,186	)	491,643		27,323		24,304
Equity transactions:
Purchase payments received from contract owners (note 6)		70,039		26,918		272,661		288,749		224,756		220,474		7,970		14,264
Transfers between funds		952,227		288,860		(163,233	)	797,123		(173,214	)	167,582		(35,563	)	27,506
Surrenders (note 6)		(43,889	)	–		(172,228	)	(273,861	)	(145,104	)	(304,775	)	–		(140	)
Death benefits (note 4)		–		–		(46,742	)	(1,686	)	–		(4,464	)	–		–
Net policy repayments (loans) (note 5)		(13,203	)	(801	)	(40,458	)	(39,417	)	(25,660	)	(4,647	)	(1,557	)	(6,380	)
Deductions for surrender charges (note 2d)		–		–		(574	)	(1,234	)	(680	)	(871	)	–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(34,928	)	(2,947	)	(143,395	)	(138,979	)	(110,151	)	(109,416	)	(8,193	)	(9,207	)
Asset charges (note 3):
MSP contracts		(1,146	)	(190	)	(1,073	)	(900	)	(455	)	(660	)	(272	)	(603	)
LSFP contracts		–		–		(2,169	)	(1,807	)	(826	)	(880	)	–		–
Adjustments to maintain reserves		(19	)	43		(3	)	236		(58	)	171		50		19
Net equity transactions		929,081		311,883		(297,214	)	628,224		(231,392	)	(37,486	)	(37,565	)	25,459
Net change in contract owners’ equity		936,619		327,892		(418,739	)	1,201,823		(341,578	)	454,157		(10,242	)	49,763
Contract owners’ equity beginning of period		327,892		–		4,472,362		3,270,539		3,471,005		3,016,848		272,027		222,264
Contract owners’ equity end of period	$	1,264,511		327,892		4,053,623		4,472,362		3,129,427		3,471,005		261,785		272,027
CHANGES IN UNITS:
Beginning units		29,332		–		274,062		234,296		167,288		170,032		19,476		17,536
Units purchased		93,663		29,694		63,863		88,447		23,689		69,419		4,527		8,882
Units redeemed		(13,443	)	(362	)	(82,603	)	(48,681	)	(36,163	)	(72,163	)	(6,863	)	(6,942	)
Ending units		109,552		29,332		255,322		274,062		154,814		167,288		17,140		19,476

(Continued)

29

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		JAspForty				JAspGlTechS				JAspRMgCore				JAspIntGroS2
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(12,099	)	(12,074	)	(2,073	)	(6,855	)	(393	)	(955	)	(3,985	)	20,414
Realized gain (loss) on investments		439,151		216,183		115,877		166,660		8,842		(10,542	)	548,537		(1,079	)
Change in unrealized gain (loss) on investments		540,465		(7,039	)	112,471		(79,000	)	4,969		19,487		655,312		342,478
Reinvested capital gains		–		–		–		–		1,665		14,511		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		967,517		197,070		226,275		80,805		15,083		22,501		1,199,864		361,813
Equity transactions:
Purchase payments received from contract owners (note 6)		157,602		144,539		83,566		86,368		17,395		16,211		324,636		132,126
Transfers between funds		1,024,588		(125,033	)	117,012		(128,569	)	(45,858	)	(66,989	)	2,261,046		2,436,285
Surrenders (note 6)		(154,881	)	(250,901	)	(75,283	)	(90,510	)	–		(13,972	)	(99,526	)	(45,650	)
Death benefits (note 4)		(16,240	)	(16,125	)	(9,228	)	(444	)	–		–		(18,717	)	–
Net policy repayments (loans) (note 5)		(59,764	)	(10,918	)	23,631		402		(19,138	)	1,236		(78,857	)	45,949
Deductions for surrender charges (note 2d)		(406	)	(1,318	)	(517	)	(1,203	)	–		(141	)	–		(848	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(123,844	)	(110,682	)	(49,328	)	(56,014	)	(14,732	)	(12,706	)	(185,825	)	(31,532	)
Asset charges (note 3):
MSP contracts		(1,083	)	(2,054	)	(573	)	(668	)	(93	)	(344	)	(2,178	)	(381	)
LSFP contracts		(2,052	)	(1,212	)	(1,411	)	(1,094	)	(109	)	–		–		–
Adjustments to maintain reserves		52		208		15		56		(20	)	20		11		127
Net equity transactions		823,972		(373,496	)	87,884		(191,676	)	(62,555	)	(76,685	)	2,200,590		2,536,076
Net change in contract owners’ equity		1,791,489		(176,426	)	314,159		(110,871	)	(47,472	)	(54,184	)	3,400,454		2,897,889
Contract owners’ equity beginning of period		2,487,380		2,663,806		1,072,703		1,183,574		197,773		251,957		2,897,889		–
Contract owners’ equity end of period	$	4,278,869		2,487,380		1,386,862		1,072,703		150,301		197,773		6,298,343		2,897,889
CHANGES IN UNITS:
Beginning units		285,306		331,492		249,722		296,802		11,346		16,002		250,138		–
Units purchased		180,836		69,327		82,861		70,064		2,233		4,554		254,072		254,903
Units redeemed		(108,068	)	(115,513	)	(67,141	)	(117,144	)	(5,407	)	(9,210	)	(77,558	)	(4,765	)
Ending units		358,074		285,306		265,442		249,722		8,172		11,346		426,652		250,138

(Continued)

30

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		JAspIntGroS				LBTShrtDBd				MFSInvGrSt				MFSValue
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(9,182	)	58,384		79,945		97,569		(658	)	(1,862	)	4,523		1,237
Realized gain (loss) on investments		1,313,259		987,377		(40,669	)	(50,801	)	18,026		12,601		103,368		11,064
Change in unrealized gain (loss) on investments		(135,689	)	536,030		120,290		91,438		9,766		10,130		(52,992	)	82,597
Reinvested capital gains		–		–		–		–		–		–		19,114		12,250
Net increase (decrease) in contract owners’ equity resulting from operations		1,168,388		1,581,791		159,566		138,206		27,134		20,869		74,013		107,148
Equity transactions:
Purchase payments received from contract owners (note 6)		808,580		233,735		141,453		154,573		17,082		22,125		65,786		84,841
Transfers between funds		(994,215	)	1,317,534		135,383		(59,355	)	(41,308	)	(20,929	)	378,505		451,701
Surrenders (note 6)		(1,058,520	)	(341,870	)	(325,168	)	(357,449	)	(40,051	)	(11,057	)	(47,779	)	(30,642	)
Death benefits (note 4)		(16,090	)	(188,919	)	(314	)	(36,090	)	–		(2,317	)	(6,837	)	–
Net policy repayments (loans) (note 5)		(95,616	)	(103,277	)	(85,061	)	103,738		6,014		(19,306	)	(34,173	)	(3,840	)
Deductions for surrender charges (note 2d)		672		(2,064	)	(147	)	(1,997	)	–		(33	)	–		(264	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(155,820	)	(159,849	)	(137,326	)	(152,278	)	(13,459	)	(16,589	)	(33,930	)	(16,853	)
Asset charges (note 3):
MSP contracts		(988	)	(1,589	)	(5,401	)	(5,450	)	–		–		(336	)	(135	)
LSFP contracts		(6,331	)	(3,471	)	(1,565	)	(1,518	)	(85	)	(64	)	(934	)	(396	)
Adjustments to maintain reserves		108		241		51		4,038		53		(32	)	38		5
Net equity transactions		(1,518,220	)	750,471		(278,095	)	(351,788	)	(71,754	)	(48,202	)	320,340		484,417
Net change in contract owners’ equity		(349,832	)	2,332,262		(118,529	)	(213,582	)	(44,620	)	(27,333	)	394,353		591,565
Contract owners’ equity beginning of period		5,228,733		2,896,471		3,775,287		3,988,869		284,511		311,844		941,512		349,947
Contract owners’ equity end of period	$	4,878,901		5,228,733		3,656,758		3,775,287		239,891		284,511		1,335,865		941,512
CHANGES IN UNITS:
Beginning units		380,508		312,446		215,938		235,258		20,452		23,984		52,354		23,408
Units purchased		22,947		166,137		35,224		49,327		3,803		3,448		35,803		32,298
Units redeemed		(123,777	)	(98,075	)	(57,104	)	(68,647	)	(8,727	)	(6,980	)	(19,225	)	(3,352	)
Ending units		279,678		380,508		194,058		215,938		15,528		20,452		68,932		52,354

(Continued)

31

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NVITAstAll2				NVITBnd2				NVITGlobGr2				NVITGroInc2
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	14,440		5,724		48,303		(622	)	26,693		(540	)	3,988		–
Realized gain (loss) on investments		9,010		585		8,655		12		30,261		220		37		–
Change in unrealized gain (loss) on investments		(652	)	7,473		(41,696	)	10,263		90,156		31,132		(10,159	)	–
Reinvested capital gains		372		–		–		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		23,170		13,782		15,262		9,653		147,110		30,812		(6,134	)	–
Equity transactions:
Purchase payments received from contract owners (note 6)		37,287		6,127		33,756		4,728		80,742		11,294		35,251		–
Transfers between funds		621,660		357,636		517,779		345,842		529,333		854,107		332,866		–
Surrenders (note 6)		(31,288	)	–		(6,547	)	–		(100,578	)	–		–		–
Death benefits (note 4)		–		–		–		–		–		–		–		–
Net policy repayments (loans) (note 5)		(10,199	)	325		449		–		(19,513	)	(664	)	(1,963	)	–
Deductions for surrender charges (note 2d)		–		–		–		–		–		–		–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(25,291	)	(2,872	)	(14,433	)	(1,664	)	(37,838	)	(5,050	)	(1,218	)	–
Asset charges (note 3):
MSP contracts		(1,518	)	(255	)	(204	)	–		(713	)	(65	)	–		–
LSFP contracts		–		–		–		–		–		–		–		–
Adjustments to maintain reserves		37		40		4		41		(3	)	73		25		–
Net equity transactions		590,688		361,001		530,804		348,947		451,430		859,695		364,961		–
Net change in contract owners’ equity		613,858		374,783		546,066		358,600		598,540		890,507		358,827		–
Contract owners’ equity beginning of period		374,783		–		358,600		–		890,507		–		–		–
Contract owners’ equity end of period	$	988,641		374,783		904,666		358,600		1,489,047		890,507		358,827		–
CHANGES IN UNITS:
Beginning units		35,632		–		34,162		–		82,430		–		–		–
Units purchased		64,078		36,101		56,189		34,323		52,897		83,024		36,717		–
Units redeemed		(10,804	)	(469	)	(6,311	)	(161	)	(14,191	)	(594	)	(319	)	–
Ending units		88,906		35,632		84,040		34,162		121,136		82,430		36,398		–

(Continued)

32

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NVITGrowth2				NVITFHiInc				NVITFHiInc3				NVITEmMrkts
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	1,112		2,798		15,779		20,206		47,409		18,929		(224	)	404
Realized gain (loss) on investments		30,464		(2,426	)	249		2		(6,384	)	(6,648	)	249,154		347,440
Change in unrealized gain (loss) on investments		67,722		24,372		(9,291	)	8,965		(35,536	)	7,599		491,434		331,985
Reinvested capital gains		352		–		–		–		–		–		301,255		25,537
Net increase (decrease) in contract owners’ equity resulting from operations		99,650		24,744		6,737		29,173		5,489		19,880		1,041,619		705,366
Equity transactions:
Purchase payments received from contract owners (note 6)		87,108		17,581		(28	)	(20	)	102,999		113,350		198		138,829
Transfers between funds		870,992		644,667		(43,864	)	(84,978	)	301,379		44,100		434,873		(501,480	)
Surrenders (note 6)		(25,662	)	(32,491	)	(7,418	)	(14,910	)	(81,540	)	(14,896	)	(44,565	)	(208,079	)
Death benefits (note 4)		–		–		–		–		–		–		–		(43,065	)
Net policy repayments (loans) (note 5)		(32,080	)	(30	)	(1,235	)	(4,206	)	58,637		(2,496	)	(71,267	)	(26,268	)
Deductions for surrender charges (note 2d)		–		(918	)	–		–		(10	)	–		–		(822	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(44,057	)	(6,959	)	(8,755	)	(13,402	)	(30,077	)	(17,251	)	(72,679	)	(77,463	)
Asset charges (note 3):
MSP contracts		(198	)	(50	)	(548	)	(765	)	(478	)	(280	)	–		(218	)
LSFP contracts		–		–		(175	)	(179	)	(126	)	(99	)	(1,217	)	(1,003	)
Adjustments to maintain reserves		15		39		(22	)	45		(15	)	33		94		540
Net equity transactions		856,118		621,839		(62,045	)	(118,415	)	350,769		122,461		245,437		(719,029	)
Net change in contract owners’ equity		955,768		646,583		(55,308	)	(89,242	)	356,258		142,341		1,287,056		(13,663	)
Contract owners’ equity beginning of period		646,583		–		257,084		346,326		306,431		164,090		2,317,172		2,330,835
Contract owners’ equity end of period	$	1,602,351		646,583		201,776		257,084		662,689		306,431		3,604,228		2,317,172
CHANGES IN UNITS:
Beginning units		62,626		–		18,872		28,010		26,516		15,630		95,972		130,590
Units purchased		87,199		66,974		1,232		1,698		37,221		17,552		23,982		11,202
Units redeemed		(10,405	)	(4,348	)	(5,750	)	(10,836	)	(7,929	)	(6,666	)	(16,148	)	(45,820	)
Ending units		139,420		62,626		14,354		18,872		55,808		26,516		103,806		95,972

(Continued)

33

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NVITEmMrkts3				NVITGlUtl				NVITIntGro				NVITGlFin
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	11,173		5,474		42,295		34,641		(8,268	)	1,040		24,514		9,363
Realized gain (loss) on investments		493,271		211,906		287,351		(14,217	)	440,692		169,443		5,349		23,758
Change in unrealized gain (loss) on investments		741,466		421,457		(356,418	)	390,133		(153,096	)	227,862		(173,066	)	5,779
Reinvested capital gains		488,860		30,546		421,869		132,217		203,237		1,912		127,951		102,103
Net increase (decrease) in contract owners’ equity resulting from operations		1,734,770		669,383		395,097		542,774		482,565		400,257		(15,252	)	141,003
Equity transactions:
Purchase payments received from contract owners (note 6)		413,503		296,509		91,867		95,595		220,200		219,677		30,637		38,692
Transfers between funds		3,408,357		647,225		(466,133	)	530,402		216,474		954,881		(112,089	)	112,365
Surrenders (note 6)		(239,734	)	(119,029	)	(147,504	)	(25,253	)	(98,278	)	(59,366	)	(13,454	)	(9,544	)
Death benefits (note 4)		–		–		(4,445	)	(48,745	)	(4,622	)	(4,036	)	–		–
Net policy repayments (loans) (note 5)		(47,217	)	(7,648	)	48,201		46,899		(52,343	)	(10,594	)	21,838		(87,224	)
Deductions for surrender charges (note 2d)		–		(383	)	–		–		–		(128	)	–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(172,952	)	(96,841	)	(80,736	)	(65,591	)	(68,672	)	(38,764	)	(32,683	)	(29,186	)
Asset charges (note 3):
MSP contracts		(2,942	)	(1,288	)	(836	)	(590	)	(404	)	(772	)	(210	)	(77	)
LSFP contracts		(3,120	)	(1,883	)	(1,643	)	(906	)	(1,112	)	(675	)	(737	)	(110	)
Adjustments to maintain reserves		403		90		127		(8	)	43		(4	)	(62	)	138
Net equity transactions		3,356,298		716,752		(561,102	)	531,803		211,286		1,060,219		(106,760	)	25,054
Net change in contract owners’ equity		5,091,068		1,386,135		(166,005	)	1,074,577		693,851		1,460,476		(122,012	)	166,057
Contract owners’ equity beginning of period		2,835,133		1,448,998		2,478,457		1,403,880		2,173,239		712,763		904,679		738,622
Contract owners’ equity end of period	$	7,926,201		2,835,133		2,312,452		2,478,457		2,867,090		2,173,239		782,667		904,679
CHANGES IN UNITS:
Beginning units		157,004		109,046		125,056		96,608		169,108		73,566		47,062		46,080
Units purchased		173,561		62,414		24,711		51,214		90,476		105,418		12,149		15,512
Units redeemed		(27,849	)	(14,456	)	(52,883	)	(22,766	)	(83,228	)	(9,876	)	(18,071	)	(14,530	)
Ending units		302,716		157,004		96,884		125,056		176,356		169,108		41,140		47,062

(Continued)

34

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NVITGlHlth				NVITGlHlth3				NVITGlTech				NVITGlTech3
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(2,873	)	(4,417	)	(2,030	)	(3,035	)	(3,531	)	(3,449	)	(2,437	)	(2,004	)
Realized gain (loss) on investments		6,064		6,406		17,898		(19,028	)	40,145		23,742		29,787		21,276
Change in unrealized gain (loss)on investments		40,103		7,171		24,158		32,536		55,567		29,036		28,926		5,799
Reinvested capital gains		8,521		–		8,113		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		51,815		9,160		48,139		10,473		92,181		49,329		56,276		25,071
Equity transactions:
Purchase payments received from contract owners (note 6)		–		(8	)	24,204		45,867		(25	)	(9	)	60,949		55,504
Transfers between funds		(69,676	)	(245,618	)	112,482		(61,862	)	28,137		(76,033	)	402,186		(169,289	)
Surrenders (note 6)		(2,450	)	(33,641	)	(24,517	)	(3,119	)	(19,297	)	(38,278	)	(32,344	)	(5,475	)
Death benefits (note 4)		–		–		(2,906	)	–		(959	)	(46	)	–		(73	)
Net policy repayments (loans) (note 5)		(3,127	)	(29,834	)	(1,604	)	58		(18,140	)	(1,640	)	22,956		649
Deductions for surrender charges (note 2d)		–		–		–		–		–		(526	)	–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(12,404	)	(20,759	)	(16,311	)	(15,575	)	(19,424	)	(23,666	)	(20,836	)	(15,626	)
Asset charges (note 3):
MSP contracts		(252	)	(335	)	(8	)	(84	)	–		–		(11	)	–
LSFP contracts		(106	)	(292	)	(94	)	(66	)	(159	)	(335	)	(22	)	(142	)
Adjustments to maintain reserves		(8	)	(16	)	(31	)	33		(7	)	13		33		(23	)
Net equity transactions		(88,023	)	(330,503	)	91,215		(34,748	)	(29,874	)	(140,520	)	432,911		(134,475	)
Net change in contract owners’ equity		(36,208	)	(321,343	)	139,354		(24,275	)	62,307		(91,191	)	489,187		(109,404	)
Contract owners’ equity beginning of period		440,426		761,769		408,953		433,228		494,028		585,219		279,489		388,893
Contract owners’ equity end of period	$	404,218		440,426		548,307		408,953		556,335		494,028		768,676		279,489
CHANGES IN UNITS:
Beginning units		33,282		58,678		37,422		40,502		146,526		191,526		20,636		31,690
Units purchased		1,461		6,633		27,119		9,778		16,755		43,336		30,553		6,194
Units redeemed		(7,549	)	(32,029	)	(20,035	)	(12,858	)	(24,395	)	(88,336	)	(3,767	)	(17,248	)
Ending units		27,194		33,282		44,506		37,422		138,886		146,526		47,422		20,636

(Continued)

35

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NVITGvtBd				NVITGrowth				NVITIntIdx6				NVITIntValI
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	430,848		394,994		(83,221	)	(101,952	)	2,648		115		11,888		14,359
Realized gain (loss) on investments		(171,239	)	(151,082	)	(1,810,057	)	(2,360,079	)	2,156		(8	)	42,345		72,763
Change in unrealized gain (loss) on investments		444,552		(31,557	)	4,820,907		3,319,647		5,211		2,298		(84,773	)	42,289
Reinvested capital gains		–		89,332		–		–		543		–		55,037		63,340
Net increase (decrease) in contract owners’ equity resulting from operations		704,161		301,687		2,927,629		857,616		10,558		2,405		24,497		192,751
Equity transactions:
Purchase payments received from contract owners (note 6)		602,352		709,052		1,633,268		1,873,914		7,956		258		(203	)	(52	)
Transfers between funds		382,878		142,389		(689,019	)	(762,149	)	357,926		14,888		(142,532	)	(242,421	)
Surrenders (note 6)		(819,647	)	(678,489	)	(1,325,699	)	(1,076,839	)	(3,221	)	–		(48,664	)	(37,392	)
Death benefits (note 4)		(67,562	)	(163,762	)	(87,576	)	(113,328	)	–		–		–		–
Net policy repayments (loans) (note 5)		(50,671	)	(72,413	)	(3,743	)	(43,902	)	(445	)	–		(7,091	)	(44,009	)
Deductions for surrender charges (note 2d)		(2,196	)	(9,132	)	(4,135	)	(19,139	)	–		–		–		(420	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(525,426	)	(574,799	)	(1,248,902	)	(1,285,998	)	(4,051	)	(299	)	(24,230	)	(35,188	)
Asset charges (note 3):
MSP contracts		(11,173	)	(11,130	)	(4,347	)	(4,301	)	–		–		(338	)	(464	)
LSFP contracts		(4,866	)	(4,773	)	(8,699	)	(8,473	)	–		–		(65	)	(59	)
Adjustments to maintain reserves		113		21,487		265		2,309		20		31		69		(30	)
Net equity transactions		(496,198	)	(641,570	)	(1,738,587	)	(1,437,906	)	358,185		14,878		(223,054	)	(360,035	)
Net change in contract owners’ equity		207,963		(339,883	)	1,189,042		(580,290	)	368,743		17,283		(198,557	)	(167,284	)
Contract owners’ equity beginning of period		11,093,374		11,433,257		16,371,335		16,951,625		17,283		–		875,642		1,042,926
Contract owners’ equity end of period	$	11,301,337		11,093,374		17,560,377		16,371,335		386,026		17,283		677,085		875,642
CHANGES IN UNITS:
Beginning units		494,136		531,932		937,894		1,012,300		1,582		–		38,784		56,386
Units purchased		93,776		124,704		215,288		197,568		32,017		1,612		2,196		116
Units redeemed		(115,084	)	(162,500	)	(309,364	)	(271,974	)	(1,205	)	(30	)	(11,730	)	(17,718	)
Ending units		472,828		494,136		843,818		937,894		32,394		1,582		29,250		38,784

(Continued)

36

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NVITIntVal3				NVITIDAgg2				NVITIDCon2				NVITIDMod2
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	36,292		19,878		60,358		35,204		20,596		10,430		153,184		124,854
Realized gain (loss) on investments		80,524		48,968		108,358		93,337		5,426		1,388		364,277		215,562
Change in unrealized gain (loss) on investments		(227,805	)	119,180		(142,271	)	186,054		(7,091	)	7,780		(250,262	)	271,956
Reinvested capital gains		158,785		87,625		143,661		33,920		12,858		4,883		112,849		57,432
Net increase (decrease) in contract owners’ equity resulting from operations		47,796		275,651		170,106		348,515		31,789		24,481		380,048		669,804
Equity transactions:
Purchase payments received from contract owners (note 6)		126,294		111,921		280,127		173,028		26,450		22,438		470,597		420,655
Transfers between funds		19,917		815,174		1,617,405		830,577		443,761		(67,715	)	(963,507	)	1,488,410
Surrenders (note 6)		(77,167	)	(12,250	)	(58,738	)	(235,406	)	–		(202,298	)	(398,274	)	(199,610	)
Death benefits (note 4)		–		(2,235	)	(6,375	)	–		–		–		(15,842	)	(160,250	)
Net policy repayments (loans) (note 5)		(11,578	)	(1,177	)	(212,269	)	(49,119	)	(10,305	)	99,499		39,800		16,702
Deductions for surrender charges (note 2d)		–		(44	)	–		(768	)	–		(2,180	)	(81	)	(478	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(62,342	)	(38,661	)	(162,086	)	(97,766	)	(34,836	)	(26,058	)	(356,953	)	(322,494	)
Asset charges (note 3):
MSP contracts		(470	)	(424	)	(797	)	(175	)	(251	)	(121	)	(11,053	)	(8,513	)
LSFP contracts		(759	)	(458	)	–		–		(288	)	(99	)	(851	)	(823	)
Adjustments to maintain reserves		(42	)	22		32		9		33		(5	)	(2	)	41
Net equity transactions		(6,147	)	871,868		1,457,299		620,380		424,564		(176,539	)	(1,236,166	)	1,233,640
Net change in contract owners’ equity		41,649		1,147,519		1,627,405		968,895		456,353		(152,058	)	(856,118	)	1,903,444
Contract owners’ equity beginning of period		2,143,777		996,258		2,892,503		1,923,608		444,253		596,311		7,884,800		5,981,356
Contract owners’ equity end of period	$	2,185,426		2,143,777		4,519,908		2,892,503		900,606		444,253		7,028,682		7,884,800
CHANGES IN UNITS:
Beginning units		153,920		87,332		188,908		146,078		36,936		52,378		575,574		484,140
Units purchased		28,548		74,875		130,334		71,709		38,999		8,142		71,214		179,203
Units redeemed		(29,302	)	(8,287	)	(40,046	)	(28,879	)	(4,819	)	(23,584	)	(159,706	)	(87,769	)
Ending units		153,166		153,920		279,196		188,908		71,116		36,936		487,082		575,574

(Continued)

37

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NVITIDModAg2				NVITIDModCon2				NVITMdCpGr				NVITMidCap
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	123,981		94,529		54,626		48,089		(8,719	)	(8,447	)	58,068		39,768
Realized gain (loss) on investments		302,933		204,996		140,379		15,365		204,611		78,557		578,665		522,315
Change in unrealized gain (loss) on investments		(198,904	)	406,666		(125,658	)	87,209		(66,657	)	53,734		(339,345	)	(36,528	)
Reinvested capital gains		149,917		71,094		60,436		34,355		–		–		212,900		103,301
Net increase (decrease) in contract owners’ equity resulting from operations		377,927		777,285		129,783		185,018		129,235		123,844		510,288		628,856
Equity transactions:
Purchase payments received from contract owners (note 6)		405,928		395,805		183,625		291,005		52,919		59,057		259,335		291,169
Transfers between funds		946,432		1,062,660		25,337		(50,241	)	(301,001	)	208,658		(461,186	)	(171,589	)
Surrenders (note 6)		(666,186	)	(150,919	)	(664,396	)	(21,949	)	(67,940	)	(127,333	)	(468,682	)	(333,966	)
Death benefits (note 4)		–		–		–		(25,518	)	–		–		(10,448	)	(16,715	)
Net policy repayments (loans) (note 5)		(172,324	)	(119,817	)	(10,594	)	35,403		(21,931	)	(24,046	)	(53,720	)	(107,579	)
Deductions for surrender charges (note 2d)		(819	)	(2,371	)	–		(181	)	–		(4,907	)	(237	)	(3,703	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(391,605	)	(342,248	)	(80,916	)	(85,286	)	(48,872	)	(54,942	)	(267,526	)	(285,811	)
Asset charges (note 3):
MSP contracts		(5,261	)	(2,580	)	(1,705	)	(1,221	)	(430	)	(444	)	(4,519	)	(5,190	)
LSFP contracts		(1,994	)	(1,570	)	(21	)	–		(553	)	(823	)	(3,922	)	(3,939	)
Adjustments to maintain reserves		8		1,237		(119	)	(21	)	(10	)	24		(90	)	781
Net equity transactions		114,179		840,197		(548,789	)	141,991		(387,818	)	55,244		(1,010,995	)	(636,542	)
Net change in contract owners’ equity		492,106		1,617,482		(419,006	)	327,009		(258,583	)	179,088		(500,707	)	(7,686	)
Contract owners’ equity beginning of period		6,898,450		5,280,968		2,675,249		2,348,240		1,457,322		1,278,234		7,210,731		7,218,417
Contract owners’ equity end of period	$	7,390,556		6,898,450		2,256,243		2,675,249		1,198,739		1,457,322		6,710,024		7,210,731
CHANGES IN UNITS:
Beginning units		470,490		411,372		209,012		198,412		219,832		210,238		447,638		491,188
Units purchased		155,493		151,964		24,621		106,475		38,403		52,529		56,916		107,211
Units redeemed		(149,087	)	(92,846	)	(66,403	)	(95,875	)	(91,451	)	(42,935	)	(116,410	)	(150,761	)
Ending units		476,896		470,490		167,230		209,012		166,784		219,832		388,144		447,638

(Continued)

38

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NVITMyMkt				NVITSmCapGr				NVITSmCapVal				NVITSmComp
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	1,300,226		1,072,289		(8,972	)	(8,928	)	62,069		(18,858	)	(140,669	)	(155,927	)
Realized gain (loss) on investments		–		–		41,433		176,700		89,149		680,552		1,046,045		774,570
Change in unrealized gain (loss) on investments		–		–		88,470		(152,111	)	(2,150,010	)	386,882		(4,422,642	)	2,061,580
Reinvested capital gains		–		–		–		–		1,325,777		911,820		4,100,839		580,447
Net increase (decrease) in contract owners’ equity resulting from operations		1,300,226		1,072,289		120,931		15,661		(673,015	)	1,960,396		583,573		3,260,670
Equity transactions:
Purchase payments received from contract owners (note 6)		6,078,889		3,658,857		65,813		75,195		469,422		519,804		1,266,101		1,337,872
Transfers between funds		8,614,030		4,530,350		280,244		258,701		(1,933,070	)	(2,640,164	)	(882,929	)	(1,170,958	)
Surrenders (note 6)		(5,798,357	)	(8,338,109	)	(63,312	)	(94,261	)	(456,149	)	(844,018	)	(2,197,463	)	(1,524,616	)
Death benefits (note 4)		(148,700	)	(88,855	)	(7,821	)	–		(24,170	)	(49,644	)	(166,560	)	(123,522	)
Net policy repayments (loans) (note 5)		(468,504	)	2,882,025		(26,223	)	(33,295	)	(157,882	)	(101,082	)	(72,672	)	(473,911	)
Deductions for surrender charges (note 2d)		(24,664	)	(36,231	)	(625	)	(4,420	)	(1,323	)	(7,012	)	(3,076	)	(14,535	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(1,868,973	)	(1,781,025	)	(60,800	)	(64,663	)	(363,080	)	(422,536	)	(1,155,722	)	(1,229,903	)
Asset charges (note 3):
MSP contracts		(24,284	)	(25,952	)	(432	)	(445	)	(6,176	)	(6,603	)	(17,239	)	(17,226	)
LSFP contracts		(22,048	)	(17,609	)	(862	)	(843	)	(12,692	)	(12,656	)	(16,884	)	(16,505	)
Adjustments to maintain reserves		(615	)	23,903		20		23		(129	)	1,302		(184	)	1,746
Net equity transactions		6,336,774		807,354		186,002		135,992		(2,485,249	)	(3,562,609	)	(3,246,628	)	(3,231,558	)
Net change in contract owners’ equity		7,637,000		1,879,643		306,933		151,653		(3,158,264	)	(1,602,213	)	(2,663,055	)	29,112
Contract owners’ equity beginning of period		28,462,929		26,583,286		1,412,676		1,261,023		12,031,142		13,633,355		30,208,105		30,178,993
Contract owners’ equity end of period	$	36,099,929		28,462,929		1,719,609		1,412,676		8,872,878		12,031,142		27,545,050		30,208,105
CHANGES IN UNITS:
Beginning units		1,855,436		1,821,092		179,264		164,700		506,404		680,010		822,602		909,012
Units purchased		1,057,744		648,048		75,738		72,557		94,730		50,594		139,300		236,546
Units redeemed		(762,536	)	(613,704	)	(55,642	)	(57,993	)	(198,794	)	(224,200	)	(228,934	)	(322,956	)
Ending units		2,150,644		1,855,436		199,360		179,264		402,340		506,404		732,968		822,602

(Continued)

39

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NVITNWFund				NVITNWLead				NVITUSGro				NVITVKVal
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	316,814		303,925		4,256		1,873		(4,206	)	(3,065	)	12,360		10,466
Realized gain (loss) on investments		(2,940,386	)	(3,408,067	)	9,871		(23,559	)	13,695		6,918		44,497		28,626
Change in unrealized gain (loss) on investments		4,596,818		12,236,368		(52,502	)	43,954		140,753		(24,714	)	(124,443	)	47,073
Reinvested capital gains		3,721,687		–		109,742		39,071		–		13,100		44,501		42,502
Net increase (decrease) in contract owners’ equity resulting from operations		5,694,933		9,132,226		71,367		61,339		150,242		(7,761	)	(23,085	)	128,667
Equity transactions:
Purchase payments received from contract owners (note 6)		5,551,188		5,894,796		16,622		28,328		20,966		41,473		60,106		54,382
Transfers between funds		(2,488,578	)	(2,621,391	)	156,223		118,672		18,772		(176,078	)	109,276		161,047
Surrenders (note 6)		(4,697,688	)	(3,779,834	)	(3,133	)	(60,657	)	(31,876	)	(45,827	)	(108,271	)	(62,690	)
Death benefits (note 4)		(399,632	)	(447,645	)	–		–		–		(1,780	)	(52,967	)	(1,841	)
Net policy repayments (loans) (note 5)		(495,927	)	(431,905	)	(3,122	)	(22,229	)	20,125		(8,920	)	(10,008	)	(23,247	)
Deductions for surrender charges (note 2d)		(10,966	)	(49,358	)	–		(80	)	–		(4,205	)	–		(551	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(4,963,358	)	(5,064,681	)	(23,050	)	(14,705	)	(24,932	)	(28,676	)	(48,517	)	(43,638	)
Asset charges (note 3):
MSP contracts		(26,086	)	(25,693	)	(576	)	(496	)	(116	)	(182	)	(21	)	(6	)
LSFP contracts		(18,519	)	(20,923	)	(199	)	(5	)	(1,264	)	(899	)	(1,174	)	(829	)
Adjustments to maintain reserves		(333	)	198,038		(2	)	(10	)	42		63		5		(17	)
Net equity transactions		(7,549,899	)	(6,348,596	)	142,763		48,818		1,717		(225,031	)	(51,571	)	82,610
Net change in contract owners’ equity		(1,854,966	)	2,783,630		214,130		110,157		151,959		(232,792	)	(74,656	)	211,277
Contract owners’ equity beginning of period		77,760,634		74,977,004		521,407		411,250		773,985		1,006,777		1,025,117		813,840
Contract owners’ equity end of period	$	75,905,668		77,760,634		735,537		521,407		925,944		773,985		950,461		1,025,117
CHANGES IN UNITS:
Beginning units		2,038,686		2,249,770		33,192		30,358		50,634		65,614		58,134		53,318
Units purchased		310,137		382,150		15,813		13,796		14,803		12,809		18,982		22,592
Units redeemed		(544,981	)	(593,234	)	(6,917	)	(10,962	)	(16,007	)	(27,789	)	(21,876	)	(17,776	)
Ending units		1,803,842		2,038,686		42,088		33,192		49,430		50,634		55,240		58,134

(Continued)

40

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NVITMltSec				NBTBal				NBTAFasc				NBTAGro
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	52,284		46,560		206		21		(597	)	(548	)	(119,531	)	(113,010	)
Realized gain (loss) on investments		(6,427	)	(2,420	)	19,145		3,433		1,696		8,663		1,433,027		944,961
Change in unrealized gain (loss) on investments		12,993		2,462		515		565		(2,811	)	(5,402	)	2,424,218		1,330,092
Reinvested capital gains		73		2,816		–		–		757		2,187		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		58,923		49,418		19,866		4,019		(955	)	4,900		3,737,714		2,162,043
Equity transactions:
Purchase payments received from contract owners (note 6)		63,723		53,050		4,349		3,565		4,581		4,812		1,065,617		1,023,355
Transfers between funds		207,016		470,478		210,694		(2,596	)	12,957		(6,498	)	(737,651	)	(11,964	)
Surrenders (note 6)		(38,063	)	(90,680	)	(10,182	)	(5,397	)	(2,522	)	(3,450	)	(1,100,321	)	(1,027,708	)
Death benefits (note 4)		(71,510	)	–		–		–		–		–		(110,677	)	(132,006	)
Net policy repayments (loans) (note 5)		(5,525	)	9,444		(875	)	133		736		(18,866	)	(93,855	)	(155,030	)
Deductions for surrender charges (note 2d)		(245	)	(963	)	–		–		–		–		(2,499	)	(13,235	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(52,941	)	(48,683	)	(4,377	)	(2,476	)	(6,398	)	(7,671	)	(967,453	)	(961,623	)
Asset charges (note 3):
MSP contracts		(803	)	(906	)	–		–		–		(27	)	(3,093	)	(3,240	)
LSFP contracts		(514	)	(590	)	–		–		(23	)	(27	)	(8,676	)	(7,445	)
Adjustments to maintain reserves		2		(53	)	15		(22	)	6		(15	)	(1,105	)	93,964
Net equity transactions		101,140		391,097		199,624		(6,793	)	9,337		(31,742	)	(1,959,713	)	(1,194,932	)
Net change in contract owners’ equity		160,063		440,515		219,490		(2,774	)	8,382		(26,842	)	1,778,001		967,111
Contract owners’ equity beginning of period		1,468,158		1,027,643		40,835		43,609		91,819		118,661		17,638,101		16,670,990
Contract owners’ equity end of period	$	1,628,221		1,468,158		260,325		40,835		100,201		91,819		19,416,102		17,638,101
CHANGES IN UNITS:
Beginning units		102,380		74,450		2,232		2,306		6,150		8,286		700,290		754,106
Units purchased		36,901		45,808		14,956		873		3,155		1,826		75,423		151,002
Units redeemed		(30,369	)	(17,878	)	(988	)	(947	)	(2,631	)	(3,962	)	(163,035	)	(204,818	)
Ending units		108,912		102,380		16,200		2,232		6,674		6,150		612,678		700,290

(Continued)

41

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NBTAGuard			NBTAInt				NBTAMCGrS				NBTAPart
Investment activity:		2007	2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(6,584)	1,512		5,289		(987	)	(4,448	)	(3,800	)	25,638		35,690
Realized gain (loss) on investments		140,736	101,526		17,573		70,204		86,321		71,600		859,375		1,168,643
Change in unrealized gain (loss) on investments		(6,334)	130,653		(42,678	)	(8,136	)	57,288		(7,589	)	(1,353,429	)	(1,230,740	)
Reinvested capital gains		–	–		27,077		2,236		–		–		2,788,543		2,986,619
Net increase (decrease) in contract owners’ equity resulting from operations		127,818	233,691		7,261		63,317		139,161		60,211		2,320,127		2,960,212
Equity transactions:
Purchase payments received from contract owners (note 6)		67,700	78,174		17,755		27,950		24,807		28,300		1,450,430		1,479,060
Transfers between funds		(149,614)	49,637		179,999		(468,151	)	281,723		208,831		(730,913	)	(1,708,268	)
Surrenders (note 6)		(137,786)	(172,564	)	(41,955	)	(12,520	)	(69,861	)	(3,137	)	(988,140	)	(1,116,320	)
Death benefits (note 4)		(915)	(16,775	)	–		–		–		(257	)	(161,926	)	(147,455	)
Net policy repayments (loans) (note 5)		(19,180)	(17,230	)	(15,412	)	7,843		(18,683	)	(5,183	)	(153,328	)	(105,429	)
Deductions for surrender charges (note 2d)		(310)	(1,096	)	–		–		–		–		(1,200	)	(22,631	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(70,162)	(77,522	)	(14,131	)	(7,484	)	(31,697	)	(25,823	)	(1,129,513	)	(1,175,888	)
Asset charges (note 3):
MSP contracts		(807)	(1,127	)	(248	)	(132	)	(8	)	(2	)	(14,282	)	(15,017	)
LSFP contracts		(1,092)	(1,333	)	(419	)	(305	)	(14	)	(102	)	(27,676	)	(25,482	)
Adjustments to maintain reserves		241	36		(7	)	105		2		14		76		889
Net equity transactions		(311,925)	(159,800	)	125,582		(452,694	)	186,269		202,641		(1,756,472	)	(2,836,541	)
Net change in contract owners’ equity		(184,107)	73,891		132,843		(389,377	)	325,430		262,852		563,655		123,671
Contract owners’ equity beginning of period		2,034,168	1,960,277		324,659		714,036		528,750		265,898		27,466,634		27,342,963
Contract owners’ equity end of period	$	1,850,061	2,034,168		457,502		324,659		854,180		528,750		28,030,289		27,466,634
CHANGES IN UNITS:
Beginning units		145,720	157,638		22,564		61,076		29,138		16,656		836,852		918,584
Units purchased		23,780	23,931		14,938		14,675		17,593		18,384		141,796		150,485
Units redeemed		(45,822)	(35,849	)	(6,546	)	(53,187	)	(8,119	)	(5,902	)	(193,096	)	(232,217	)
Ending units		123,678	145,720		30,956		22,564		38,612		29,138		785,552		836,852

(Continued)

42

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NBTARegS				NBTSocRes				OppBal				OppCapAp
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	619		80		(2,117	)	(1,336	)	260,773		205,776		(42,282	)	(30,793	)
Realized gain (loss) on investments		(291	)	3,920		36,060		6,609		24,650		41,678		947,717		894,643
Change in unrealized gain (loss) on investments		(9,805	)	(1,287	)	(5,060	)	34,903		(925,301	)	486,525		489,293		(18,989	)
Reinvested capital gains		11,358		9,918		1,612		3,663		1,074,036		650,195		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		1,881		12,631		30,495		43,839		434,158		1,384,174		1,394,728		844,861
Equity transactions:
Purchase payments received from contract owners (note 6)		8,866		13,499		29,427		60,778		580,866		636,886		642,650		691,678
Transfers between funds		118,806		65,765		113,916		152,802		(336,046	)	(841,229	)	(1,299,921	)	(1,498,356	)
Surrenders (note 6)		(4,896	)	(5,026	)	(99,111	)	(16,680	)	(1,052,336	)	(781,266	)	(813,615	)	(1,100,399	)
Death benefits (note 4)		–		–		–		–		(196,189	)	(122,860	)	(51,775	)	(857	)
Net policy repayments (loans) (note 5)		(7,891	)	1,289		(25,983	)	17,583		(14,448	)	(27,076	)	(228	)	(111,248	)
Deductions for surrender charges (note 2d)		–		(86	)	–		–		(2,530	)	(6,059	)	(5,507	)	(16,789	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(8,400	)	(4,020	)	(15,500	)	(11,535	)	(573,966	)	(616,833	)	(505,197	)	(570,516	)
Asset charges (note 3):
MSP contracts		(2	)	–		(111	)	(81	)	(8,257	)	(9,176	)	(4,398	)	(4,501	)
LSFP contracts		(526	)	(538	)	(226	)	(170	)	(3,765	)	(3,632	)	(6,000	)	(6,059	)
Adjustments to maintain reserves		6		42		8		34		72		13,967		(12	)	928
Net equity transactions		105,963		70,925		2,420		202,731		(1,606,599	)	(1,757,278	)	(2,044,003	)	(2,616,119	)
Net change in contract owners’ equity		107,844		83,556		32,915		246,570		(1,172,441	)	(373,104	)	(649,275	)	(1,771,258	)
Contract owners’ equity beginning of period		170,807		87,251		430,277		183,707		13,735,121		14,108,225		11,159,267		12,930,525
Contract owners’ equity end of period	$	278,651		170,807		463,192		430,277		12,562,680		13,735,121		10,509,992		11,159,267
CHANGES IN UNITS:
Beginning units		13,288		7,502		25,806		12,464		478,632		523,202		672,526		846,284
Units purchased		10,801		6,499		12,372		16,093		64,101		76,165		91,175		110,061
Units redeemed		(2,981	)	(713	)	(12,296	)	(2,751	)	(121,431	)	(120,735	)	(204,313	)	(283,819	)
Ending units		21,108		13,288		25,882		25,806		421,302		478,632		559,388		672,526

(Continued)

43

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		OppBdFd				OppGlSec3				OppGlSec				OppHighInc3
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	524,909		517,980		53,022		9,497		270,026		142,602		(302	)	–
Realized gain (loss) on investments		74,104		(61,428	)	184,557		91,819		2,612,574		2,094,212		(80	)	–
Change in unrealized gain (loss) on investments		(188,237	)	59,204		(204,740	)	528,285		(2,586,681	)	1,394,466		(3,193	)	–
Reinvested capital gains		–		–		359,391		213,406		1,725,651		1,920,739		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		410,776		515,756		392,230		843,007		2,021,570		5,552,019		(3,575	)	–
Equity transactions:
Purchase payments received from contract owners (note 6)		510,870		625,793		1,369,384		1,677,980		640		44,188		17,626		–
Transfers between funds		(49,592	)	86,471		413,420		1,648,556		(1,846,255	)	(1,513,966	)	90,873		–
Surrenders (note 6)		(911,939	)	(459,829	)	(752,642	)	(440,872	)	(2,146,176	)	(2,151,334	)	(1,596	)	–
Death benefits (note 4)		(39,203	)	(29,886	)	(41,749	)	(6,803	)	(218,520	)	(211,952	)	–		–
Net policy repayments (loans) (note 5)		(76,963	)	(35,645	)	386,022		309,643		(467,073	)	(704,823	)	1,312		–
Deductions for surrender charges (note 2d)		(1,752	)	(8,577	)	(426	)	(2,417	)	(2,237	)	(20,300	)	–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(456,084	)	(492,130	)	(371,984	)	(257,243	)	(1,051,117	)	(1,210,228	)	(1,755	)	–
Asset charges (note 3):
MSP contracts		(6,943	)	(7,449	)	(2,706	)	(2,048	)	(14,632	)	(14,159	)	–		–
LSFP contracts		(6,684	)	(6,411	)	(2,911	)	(1,984	)	(10,982	)	(12,028	)	–		–
Adjustments to maintain reserves		(91	)	9,216		17		10		207		2,798		33		–
Net equity transactions		(1,038,381	)	(318,447	)	996,425		2,924,822		(5,756,145	)	(5,791,804	)	106,493		–
Net change in contract owners’ equity		(627,605	)	197,309		1,388,655		3,767,829		(3,734,575	)	(239,785	)	102,918		–
Contract owners’ equity beginning of period		11,451,238		11,253,929		6,742,484		2,974,655		35,853,755		36,093,540		–		–
Contract owners’ equity end of period	$	10,823,633		11,451,238		8,131,139		6,742,484		32,119,180		35,853,755		102,918		–
CHANGES IN UNITS:
Beginning units		477,286		494,198		479,820		247,696		902,632		1,029,012		–		–
Units purchased		72,782		156,167		235,329		285,602		112,831		158,662		10,961		–
Units redeemed		(114,992	)	(173,079	)	(168,529	)	(53,478	)	(238,077	)	(285,042	)	(267	)	–
Ending units		435,076		477,286		546,620		479,820		777,386		902,632		10,694		–

(Continued)

44

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		OppHighInc				OppMStSCap				OppMSt				OppMidCap
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	41,814		40,309		(3,165	)	(4,855	)	11,022		11,780		(9,076	)	(12,067	)
Realized gain (loss) on investments		(6,938	)	(5,076	)	8,054		102,276		178,260		72,433		116,295		125,208
Change in unrealized gain (loss) on investments		(38,746	)	17,994		(76,840	)	(29,831	)	(99,839	)	185,311		(10,721	)	(71,606	)
Reinvested capital gains		–		–		45,630		25,550		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		(3,870	)	53,227		(26,321	)	93,140		89,443		269,524		96,498		41,535
Equity transactions:
Purchase payments received from contract owners (note 6)		12,695		35,573		63,584		90,956		99,392		95,216		102,708		128,202
Transfers between funds		(191,521	)	113,167		131,907		398,737		(220,379	)	392,275		(301,045	)	(251,389	)
Surrenders (note 6)		(14,172	)	(66,566	)	(37,735	)	(31,182	)	(210,786	)	(44,398	)	(59,970	)	(153,575	)
Death benefits (note 4)		–		–		–		–		(55,034	)	(79,297	)	(20,699	)	(12,151	)
Net policy repayments (loans) (note 5)		(1,099	)	(22,757	)	(23,689	)	(11,558	)	(58,836	)	(73,454	)	(30,598	)	918
Deductions for surrender charges (note 2d)		(87	)	(439	)	–		(787	)	(239	)	(148	)	(88	)	(1,752	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(22,982	)	(22,996	)	(46,893	)	(38,278	)	(83,795	)	(79,006	)	(85,091	)	(107,289	)
Asset charges (note 3):
MSP contracts		(648	)	(717	)	(221	)	(128	)	(2,795	)	(2,757	)	(602	)	(483	)
LSFP contracts		(457	)	(398	)	(707	)	(225	)	(1,177	)	(1,103	)	(270	)	(420	)
Adjustments to maintain reserves		49		(64	)	(52	)	3		34		98		5		317
Net equity transactions		(218,222	)	34,803		86,194		407,538		(533,615	)	207,426		(395,650	)	(397,622	)
Net change in contract owners’ equity		(222,092	)	88,030		59,873		500,678		(444,172	)	476,950		(299,152	)	(356,087	)
Contract owners’ equity beginning of period		664,225		576,195		1,133,028		632,350		2,405,945		1,928,995		1,578,859		1,934,946
Contract owners’ equity end of period	$	442,133		664,225		1,192,901		1,133,028		1,961,773		2,405,945		1,279,707		1,578,859
CHANGES IN UNITS:
Beginning units		49,608		46,888		55,332		35,404		222,728		205,266		245,818		308,834
Units purchased		2,774		12,764		18,569		29,626		27,285		87,812		33,623		57,133
Units redeemed		(19,254	)	(10,044	)	(14,817	)	(9,698	)	(75,837	)	(70,350	)	(91,865	)	(120,149	)
Ending units		33,128		49,608		59,084		55,332		174,176		222,728		187,576		245,818

(Continued)

45

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		PVTGroInc				PVTIntlEq				PVTVoygr				TRoeBlChip2
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	810		707		9,735		(684	)	(267	)	(251	)	(1,850	)	(770	)
Realized gain (loss) on investments		(91	)	9,397		20,299		29,844		3,423		3,324		62,166		7,612
Change in unrealized gain (loss) on investments		(25,028	)	6,494		(53,099	)	37,078		917		1,141		(20,940	)	23,688
Reinvested capital gains		17,302		2,275		54,130		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		(7,007	)	18,873		31,065		66,238		4,073		4,214		39,376		30,530
Equity transactions:
Purchase payments received from contract owners (note 6)		4,826		5,428		20,459		30,702		2,398		2,383		30,729		18,007
Transfers between funds		2,777		30,462		129,508		(23,641	)	(9,237	)	(27,059	)	314,976		136,078
Surrenders (note 6)		(1,062	)	(35,269	)	(19,739	)	(10,603	)	(882	)	–		(35,013	)	(54,370	)
Death benefits (note 4)		–		–		(4,534	)	–		–		–		–		–
Net policy repayments (loans) (note 5)		(2,759	)	(2,775	)	(4,912	)	(1,039	)	881		(482	)	(20,696	)	121
Deductions for surrender charges (note 2d)		–		(411	)	–		–		–		–		–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(6,397	)	(12,309	)	(17,929	)	(11,802	)	(4,277	)	(4,925	)	(15,562	)	(15,811	)
Asset charges (note 3):
MSP contracts		–		–		(1	)	(10	)	(213	)	(196	)	(429	)	(256	)
LSFP contracts		(1	)	(114	)	(157	)	(26	)	(76	)	(100	)	–		(111	)
Adjustments to maintain reserves		11		(29	)	(51	)	28		(5	)	10		32		13
Net equity transactions		(2,605	)	(15,017	)	102,644		(16,391	)	(11,411	)	(30,369	)	274,037		83,671
Net change in contract owners’ equity		(9,612	)	3,856		133,709		49,847		(7,338	)	(26,155	)	313,413		114,201
Contract owners’ equity beginning of period		115,838		111,982		370,460		320,613		80,963		107,118		356,290		242,089
Contract owners’ equity end of period	$	106,226		115,838		504,169		370,460		73,625		80,963		669,703		356,290
CHANGES IN UNITS:
Beginning units		7,034		7,844		17,808		19,614		5,916		8,234		29,062		21,492
Units purchased		1,122		4,968		10,147		8,618		357		391		30,196		21,990
Units redeemed		(1,258	)	(5,778	)	(5,559	)	(10,424	)	(1,173	)	(2,709	)	(10,488	)	(14,420	)
Ending units		6,898		7,034		22,396		17,808		5,100		5,916		48,770		29,062

(Continued)

46

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		TRowEqInc2				TRowLtdTBd2				DrySRGro				VEWrldBd
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	14,679		6,599		7,912		1,528		(10,435	)	(49,304	)	148,549		230,704
Realized gain (loss) on investments		56,339		1,102		2,139		(54	)	(283,858	)	(435,841	)	(62,582	)	(64,415	)
Change in unrealized gain (loss) on investments		(144,478	)	82,943		2,506		312		885,971		1,181,954		154,431		(4,075	)
Reinvested capital gains		90,216		30,539		–		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		16,756		121,183		12,557		1,786		591,678		696,809		240,398		162,214
Equity transactions:
Purchase payments received from contract owners (note 6)		79,115		94,354		2,271		1,316		749,177		833,043		149,050		150,914
Transfers between funds		270,046		789,443		327,843		26,415		(310,224	)	(428,466	)	300,154		(71,300	)
Surrenders (note 6)		(40,851	)	(3,239	)	–		(514	)	(592,352	)	(736,233	)	(135,076	)	(505,868	)
Death benefits (note 4)		–		–		–		–		(43,342	)	(64,260	)	(24,930	)	(1,420	)
Net policy repayments (loans) (note 5)		(42,121	)	(5,594	)	1,772		(97	)	(18,488	)	145,274		(8,828	)	139,390
Deductions for surrender charges (note 2d)		–		(183	)	–		–		(1,368	)	(7,417	)	(332	)	(2,160	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(56,704	)	(31,449	)	(9,448	)	(1,420	)	(542,630	)	(570,614	)	(122,647	)	(133,845	)
Asset charges (note 3):
MSP contracts		(207	)	(49	)	(102	)	–		(2,229	)	(2,468	)	(1,432	)	(1,176	)
LSFP contracts		(669	)	(333	)	(17	)	–		(2,817	)	(2,992	)	(381	)	(454	)
Adjustments to maintain reserves		11		58		59		(21	)	(26	)	1,201		38		2,192
Net equity transactions		208,620		843,008		322,378		25,679		(764,299	)	(832,932	)	155,616		(423,727	)
Net change in contract owners’ equity		225,376		964,191		334,935		27,465		(172,621	)	(136,123	)	396,014		(261,513	)
Contract owners’ equity beginning of period		1,289,316		325,125		62,012		34,547		8,657,082		8,793,205		2,844,471		3,105,984
Contract owners’ equity end of period	$	1,514,692		1,289,316		396,947		62,012		8,484,461		8,657,082		3,240,485		2,844,471
CHANGES IN UNITS:
Beginning units		103,122		30,698		5,960		3,428		362,908		398,460		144,434		167,104
Units purchased		35,155		77,295		34,604		2,763		84,968		86,163		38,401		24,635
Units redeemed		(20,135	)	(4,871	)	(4,308	)	(231	)	(117,362	)	(121,715	)	(30,405	)	(47,305	)
Ending units		118,142		103,122		36,256		5,960		330,514		362,908		152,430		144,434

(Continued)

47

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		VEWrldEMkt				VEWrldHAs				VKUCorPlus				VKUEmMkt
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(16,974	)	1,284		(64,105	)	(65,291	)	10,008		11,934		172,810		183,241
Realized gain (loss) on investments		1,638,688		1,637,462		1,703,160		2,448,894		2,549		(4,884	)	(41,585	)	48,041
Change in unrealized gain (loss) on investments		82,871		639,534		1,644,501		(885,664	)	8,225		277		(66,085	)	(46,208	)
Reinvested capital gains		2,156,585		939,523		1,473,529		642,387		–		1,911		78,893		42,664
Net increase (decrease) in contract owners’ equity resulting from operations		3,861,170		3,217,803		4,757,085		2,140,326		20,782		9,238		144,033		227,738
Equity transactions:
Purchase payments received from contract owners (note 6)		406,654		468,520		375,964		932,089		12,085		8,687		79,438		95,715
Transfers between funds		(351,722	)	(72,994	)	857,604		(496,466	)	250,442		51,665		(167,106	)	(232,754	)
Surrenders (note 6)		(539,830	)	(645,512	)	(742,511	)	(1,134,179	)	(32,927	)	(84,046	)	(66,100	)	(142,002	)
Death benefits (note 4)		(34,771	)	(289,173	)	(9,881	)	(164,468	)	–		–		(10,830	)	(9,746	)
Net policy repayments (loans) (note 5)		(109,248	)	(765	)	(175,768	)	(189,311	)	(11,075	)	8,821		(14,311	)	(14,640	)
Deductions for surrender charges (note 2d)		(741	)	(5,179	)	(389	)	(4,653	)	–		(328	)	–		(1,416	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(375,189	)	(326,146	)	(411,823	)	(406,102	)	(18,481	)	(16,071	)	(87,068	)	(97,504	)
Asset charges (note 3):
MSP contracts		(5,985	)	(4,313	)	(8,046	)	(6,868	)	(97	)	(79	)	(881	)	(1,080	)
LSFP contracts		(9,420	)	(7,724	)	(3,194	)	(3,074	)	(74	)	(61	)	(3,737	)	(4,327	)
Adjustments to maintain reserves		279		513		1,154		(11,966	)	28		36		9		253
Net equity transactions		(1,019,973	)	(882,773	)	(116,890	)	(1,484,998	)	199,901		(31,376	)	(270,586	)	(407,501	)
Net change in contract owners’ equity		2,841,197		2,335,030		4,640,195		655,328		220,683		(22,138	)	(126,553	)	(179,763	)
Contract owners’ equity beginning of period		11,285,298		8,950,268		11,110,432		10,455,104		341,760		363,898		2,481,886		2,661,649
Contract owners’ equity end of period	$	14,126,495		11,285,298		15,750,627		11,110,432		562,443		341,760		2,355,333		2,481,886
CHANGES IN UNITS:
Beginning units		508,528		562,354		304,462		347,218		30,284		33,292		120,794		143,840
Units purchased		102,968		98,786		58,662		56,622		26,797		10,102		30,254		31,041
Units redeemed		(148,818	)	(152,612	)	(58,104	)	(99,378	)	(9,693	)	(13,110	)	(41,962	)	(54,087	)
Ending units		462,678		508,528		305,020		304,462		47,388		30,284		109,086		120,794

(Continued)

48

NATIONWIDE VLI SEPARATE ACCOUNT-2

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		VKUUSRE				WFVDisc				WFVOpp
Investment activity:		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	115,313		100,766		(51,938	)	(50,456	)	573		(215,703	)
Realized gain (loss) on investments		3,939,107		1,979,110		646,495		369,770		93,211		55
Change in unrealized gain (loss) on investments		(9,669,937	)	3,692,843		1,097,061		714,074		(2,882,045	)	263,654
Reinvested capital gains		1,981,393		1,496,337		–		–		4,826,981		3,582,720
Net increase (decrease) in contract owners’ equity resulting from operations		(3,634,124	)	7,269,056		1,691,618		1,033,388		2,038,720		3,630,726
Equity transactions:
Purchase payments received from contract owners (note 6)		747,226		915,299		326,377		374,181		1,400,462		1,611,457
Transfers between funds		(5,815,128	)	987,861		(247,675	)	(33,725	)	(1,163,843	)	(1,406,170	)
Surrenders (note 6)		(1,087,998	)	(1,291,997	)	(573,020	)	(628,573	)	(2,863,802	)	(1,992,977	)
Death benefits (note 4)		(45,939	)	(99,378	)	(3,839	)	(8,451	)	(232,086	)	(113,092	)
Net policy repayments (loans) (note 5)		(145,577	)	(165,156	)	(28,890	)	(29,981	)	3,830		(27,911	)
Deductions for surrender charges (note 2d)		(2,184	)	(16,388	)	(354	)	(1,140	)	(2,618	)	(13,532	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(793,076	)	(830,874	)	(316,893	)	(322,344	)	(1,383,823	)	(1,464,476	)
Asset charges (note 3):
MSP contracts		(9,033	)	(9,590	)	(2,827	)	(2,219	)	(8,032	)	(7,783	)
LSFP contracts		(10,311	)	(10,154	)	(633	)	(870	)	(7,683	)	(7,925	)
Adjustments to maintain reserves		(241	)	317		191		970		11,453		3,144
Net equity transactions		(7,162,261	)	(520,060	)	(847,563	)	(652,152	)	(4,246,142	)	(3,419,265	)
Net change in contract owners’ equity		(10,796,385	)	6,748,996		844,055		381,236		(2,207,422	)	211,461
Contract owners’ equity beginning of period		26,868,542		20,119,546		8,177,366		7,796,130		33,782,998		33,571,537
Contract owners’ equity end of period	$	16,072,157		26,868,542		9,021,421		8,177,366		31,575,576		33,782,998
CHANGES IN UNITS:
Beginning units		473,108		482,116		240,618		263,596		746,196		831,198
Units purchased		37,574		107,910		31,233		68,246		87,677		146,683
Units redeemed		(175,324	)	(116,918	)	(52,539	)	(91,224	)	(173,225	)	(231,685	)
Ending units		335,358		473,108		219,312		240,618		660,648		746,196

See accompanying notes to financial statements.

49

NATIONWIDE VLI SEPARATE ACCOUNT-2

NOTES TO FINANCIAL STATEMENTS

December 31, 2007 and 2006

(1) Background and Summary of Significant Accounting Policies

(a) Organization and Nature of Operations

The Nationwide VLI Separate Account-2 (the Account) was established pursuant to a resolution of the Board of Directors of Nationwide Life Insurance Company (the Company) on May 7, 1987. The Account is registered as a unit investment trust under the Investment Company Act of 1940.

The Company offers Single Premium, Modified Single Premium, Flexible Premium and Last Survivor Flexible Premium Variable Life Insurance Policies through the Account. The primary distribution for the contracts is through the brokerage community; however, other distributors may be utilized.

(b) The Contracts

Prior to December 31, 1990, only contracts without a front-end sales charge, but with a contingent deferred sales charge and certain other fees, were offered for purchase. Beginning December 31, 1990, contracts with a front-end sales charge, a contingent deferred sales charge and certain other fees, are offered for purchase. See note 2 for a discussion of policy charges and note 3 for asset charges.

Contract owners may invest in the following:

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

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

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

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

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

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

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

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

American Century VP – Balanced Fund – Class I (ACVPBal)

American Century VP – Capital Appreciation Fund – Class I (ACVPCapAp)

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

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

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

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

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

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

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

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

Portfolios of the Credit Suisse Trust;

Credit Suisse Trust – Global Small Cap Portfolio (CSTGlobSmCp)

Credit Suisse Trust – International Focus Portfolio (CSTIntFoc)

Credit Suisse Trust – Small Cap Core I Portfolio (CSTSmCapGr)

Portfolios of the Dreyfus Investment Portfolios (Dreyfus IP);

Dreyfus IP – European Equity Portfolio (DryIPEuroEq)*

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

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

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

Dreyfus VIF – Appreciation Portfolio – Initial Shares (DryVApp)

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

Dreyfus VIF – Growth and Income Portfolio – Initial Shares (DryVGroInc)

(Continued)

50

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

Portfolios of the Federated Insurance Series (Federated IS);

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

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

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

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

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

Fidelity^® VIP – Equity-Income Portfolio – Initial Class (FidVIPEI)

Fidelity^® VIP – Growth Portfolio – Initial Class (FidVIPGr)

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

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

Fidelity^® VIP – Overseas Portfolio – Initial Class (FidVIPOv)

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

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

Fidelity^® VIP II – Asset Manager Portfolio – Initial Class (FidVIPAM)

Fidelity^® VIP II – Contrafund^® Portfolio – Initial Class (FidVIPCon)

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

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

Fidelity^® VIP III – Growth Opportunities Portfolio – Initial Class (FidVIPGrOp)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Portfolios of the Janus Aspen Series;

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

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

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

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

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

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

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

Lehman Brothers AMT – Short Duration Bond Portfolio – I Class

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

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

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

MFS VIT – Value Series – Initial Class (MFSValue)

(Continued)

51

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Nationwide VIT – Growth Fund – Class I (NVITGrowth)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Nationwide VIT – Nationwide Fund – Class I (NVITNWFund)

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

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

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

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

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

Neuberger Berman AMT – Balanced Portfolio – I Class Shares (NBTBal)

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

Neuberger Berman AMT – Growth Portfolio – Class I (NBTAGro)

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

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

Neuberger Berman AMT – Mid Cap Growth Portfolio – Class S (NBTAMCGrS)

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

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

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

(Continued)

52

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

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

Oppenheimer VAF – Balanced Fund – Non-Service Shares (OppBal)

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

Oppenheimer VAF – Core Bond Fund – Non-Service Shares (OppBdFd)

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

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

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

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

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

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

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

Portfolios of the Putnam Variable Trust (Putnam VT);

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

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

Putnam VT – Voyager Fund – IB Shares (PVTVoygr)

Strong Variable Insurance Funds, Inc. – Strong International Stock Fund II (StVIFIntStk2)*

Portfolios T. Rowe Price;

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

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

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

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

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

Portfolios of the Van Eck Worldwide Insurance Trust;

Van Eck Worldwide Insurance Trust – Bond Fund – Initial Class (VEWrldBd)

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

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

Portfolio of the Van Kampen Life Investment Trust (Van Kampen LIT);

Van Kampen LIT – Morgan Stanley Real Estate Securities Fund (VKLRealEst)*

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

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

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

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

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

Wells Fargo AVT – Discovery Fund^SM (WFVDisc)

Wells Fargo AVT – Opportunity Fund^SM (WFVOpp)

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

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

(Continued)

53

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

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

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

(c) Security Valuation, Transactions and Related Investment Income

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

(d) Federal Income Taxes

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

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

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

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

(f) New Accounting Pronouncement

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

(Continued)

54

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

(2) Policy Charges

(a) Deductions from Premiums

For single premium and modified single premium contracts, no deduction is made from any premium at the time of payment. On multiple payment contracts the Company deducts a charge for state premium taxes equal to 2.5% of all premiums received to cover the payment of these premium taxes. The Company also deducts a sales load from each premium payment received not to exceed 3.5% of each premium payment. For flexible premium contracts, the sales load is reduced to 1.5% on any portion of the annual premium paid in excess of the annual break point premium.

On last survivor flexible premium contracts, the Company deducts a charge for state premium taxes equal to 3.5% of all premiums received to cover the payment of these premium taxes. The Company also deducts a sales load from each premium payment received not to exceed 5% of each premium payment during the first ten years and 1.5% of each premium payment thereafter.

The Company may at its sole discretion reduce this sales loading.

For the periods ended December 31, 2007 and 2006, total front-end sales charge deductions were $3,025,837 and $3,219,241, respectively.

(b) Cost of Insurance

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

For last survivor flexible premium contracts, the monthly cost of insurance is determined in a manner that reflects the anticipated mortality of the two insureds and the fact that the death benefit is not payable until the death of the second insured policyholder.

(c) Administrative Charges

An administrative charge is assessed against each contract to recover policy maintenance, accounting, record keeping and other administrative expenses and is assessed against each contract by liquidating units.

For single premium contracts, the Company deducts an annual administrative charge which is determined as follows:

Contracts issued prior to April 16, 1990:

Purchase payments totalling less than $25,000 – $10/month

Purchase payments totalling $25,000 or more – none

Contracts issued on or after April 16, 1990:

Purchase payments totalling less than $25,000 – $90/year ($65/year in New York)

Purchase payments totalling $25,000 or more – $50/year

For multiple payment contracts, the Company currently deducts a monthly administrative charge of $5 (not to exceed $7.50 per month).

For flexible premium contracts, the Company currently deducts a monthly administrative charge of $12.50 during the first policy year. For all subsequent years, a monthly administrative charge is deducted (currently $5 per month not to exceed $7.50). Additionally, the Company deducts an increase charge when the policy’s specified amount is increased. The charge is equal $2.04 per year per $1,000 of the specified amount increase.

For modified single premium contracts, the monthly charge is equal to an annualized rate of 0.30% multiplied by the policy’s cash value to cover administrative, premium tax and deferred acquisition costs. For policy years 11 and later, this monthly charge is reduced to an annualized rate of 0.15% of the policy’s cash value. The monthly charge is subject to a $10 minimum.

(Continued)

55

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

For last survivor flexible premium contracts, the Company deducts a monthly administrative charge equal to the sum of the per policy charge and the per $1,000 basic coverage charge. For policy years one through ten the per policy charge is $10. Additionally, there is a $0.04 per $1,000 basic coverage charge (not less than $20 or more than $80 per policy per year). For policy years eleven and after, the per policy charge is $5. Additionally, there is a $0.02 per $1,000 basic coverage charge (not less than $10 or more than $40 per policy per year).

(d) Surrender Charges

Policy surrenders result in a withdrawal of contract value from the Account and payment of the surrender proceeds to the policy owner or designee. The surrender proceeds consist of the contract value, less any outstanding policy loans, and less a surrender charge, if applicable. The charge is determined according to contract type.

For single premium contracts, the charge is a percentage of the original purchase payment. For single premium contracts issued prior to April 16, 1990, the charge is 8% in the first year and declines a specified amount each year. After the ninth year, the charge is 0%. For single premium contracts issued on or after April 16, 1990, the charge is 8.5% in the first year, and declines a specified amount each year. After the ninth year, the charge is 0%. However, if a policy’s specified amount increases, the amount of the increase will have a nine-year surrender charge period.

For multiple payment contracts, last survivor flexible premium contract and flexible premium contracts, the amount charged is based upon a specified percentage of the initial specified amount and varies by issue age, sex and rate class. The charge is reduced at certain time intervals, and declines a specified amount each year. After the ninth year for flexible premium contracts and after the tenth year for multiple payment and last survivor contracts, the charge is 0%. However, if a policy’s specified amount increases, the amount of the increase will have the same nine-year surrender charge period.

For modified single premium contracts, the amount charged is based on a percentage of the original premium payment. The charge is 10% of the initial premium payment and declines a specified amount each year to 0% after the end of the ninth year.

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

(3) Asset Charges

For single premium contracts, the Company deducts a mortality and expense risk charge from the contract to cover mortality and expense risk charges related to operations, and to recover policy maintenance and premium tax charges. For contracts issued prior to April 16, 1990, the charge is equal to an annualized rate of 0.95% during the first ten policy years, and 0.50% thereafter. For single premium contracts issued on or after April 16, 1990, the charge is equal to an annualized rate of 1.30% during the first ten policy years, and 1.00% thereafter. The charge is assessed through the daily unit value calculation and is reflected in the table below.

For multiple payment contracts, the Company deducts a mortality and expense risk charge equal to an annualized rate of 0.80%. The charge is assessed through the daily unit value calculation and is reflected in the table below.

For modified single premium contracts (MSP), the Company deducts an annualized rate of 0.90% charged against the cash value in the Variable Account. This charge is assessed monthly against each contract by liquidating units.

For flexible premium contracts and last survivor flexible premium contracts (LSFP), the Company deducts an annualized rate of 0.80% in policy years one through ten. This charge is assessed monthly by liquidating units. In policy years eleven and after, the charge will continue to be deducted, but may be reduced for policies at specified asset levels.

(Continued)

56

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

The following table provides mortality and expense risk charges by contract type for the period ended December 31, 2007:

	Total		AIMBValue	AIMCapAp	AIMCapDev	AlVGrIncA
Single Premium contracts issued prior to April 16,1990	$	766,441	–	–	–	–
Single Premium contracts issued on or after April 16, 1990		5,130	–	–	–	–
Multiple Payment and Flexible Premium contracts		5,223,443	6,372	853	2,516	4,820
Total	$	5,995,014	6,372	853	2,516	4,820
	AlVSmMdCpA		ACVPBal	ACVPCapAp	ACVPIncGr	ACVPInflPro2
Single Premium contracts issued prior to April 16,1990	$	–	5,465	20,312	2,205	–
Single Premium contracts issued on or after April 16, 1990		–	–	130	–	–
Multiple Payment and Flexible Premium contracts		8,035	25,321	93,479	17,071	4,204
Total	$	8,035	30,786	113,921	19,276	4,204
	ACVPInt		ACVPInt3	ACVPMdCpV	ACVPUltra	ACVPVal
Single Premium contracts issued prior to April 16,1990	$	9,227	–	–	147	16,392
Single Premium contracts issued on or after April 16, 1990		12	–	–	–	–
Multiple Payment and Flexible Premium contracts		49,491	14,767	7,231	3,042	64,302
Total	$	58,730	14,767	7,231	3,189	80,694
	ACVPVista1		CSTGlobSmCp	CSTIntFoc	CSTSmCapGr	DryIPSmCap
Single Premium contracts issued prior to April 16,1990	$	–	601	4,828	5,517	3,085
Single Premium contracts issued on or after April 16, 1990		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		3,330	4,419	37,580	57,678	7,842
Total	$	3,330	5,020	42,408	63,195	10,927
	DryStkIx		DryVApp	DryVDevLd	DryVGroInc	FedAmLead
Single Premium contracts issued prior to April 16,1990	$	43,018	9,871	–	2,241	–
Single Premium contracts issued on or after April 16, 1990		207	–	–	–	–
Multiple Payment and Flexible Premium contracts		388,429	25,824	1,582	10,721	983
Total	$	431,654	35,695	1,582	12,962	983
	FedCapAp		FedMrkOp	FedQualBd	FidVIPEI	FidVIPGr
Single Premium contracts issued prior to April 16,1990	$	–	–	3,543	74,683	64,200
Single Premium contracts issued on or after April 16, 1990		–	–	–	870	823
Multiple Payment and Flexible Premium contracts		85	14	4,640	400,122	460,901
Total	$	85	14	8,183	475,675	525,924

(Continued)

57

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	FidVIPHI		FidVIPHIR	FidVIPOv	FidVIPOvSR	FidVIPAM
Single Premium contracts issued prior to April 16,1990	$	19,457	–	23,905	–	27,939
Single Premium contracts issued on or after April 16, 1990		277	–	381	–	208
Multiple Payment and Flexible Premium contracts		82,601	3,886	77,419	29,910	99,460
Total	$	102,335	3,886	101,705	29,910	127,607
	FidVIPCon		FidVIPIGBdS	FidVIPGrOp	FidVIPMCapS	FidVIPVaIS
Single Premium contracts issued prior to April 16,1990	$	52,504	–	1,050	–	2,340
Single Premium contracts issued on or after April 16, 1990		–	–	74	–	–
Multiple Payment and Flexible Premium contracts		378,116	18,055	25,755	58,040	7,178
Total	$	430,620	18,055	26,879	58,040	9,518
	FidVIPEnergyS2		FidVIPFree10S	FidVIPFree20S	FidVIPFree30S	FrVIPDevMrk3
Single Premium contracts issued prior to April 16,1990	$	–	–	–	–	–
Single Premium contracts issued on or after April 16, 1990		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		26,992	1,763	3,367	2,958	12,523
Total	$	26,992	1,763	3,367	2,958	12,523
	FrVIPForSec		FrVIPForSec3	FrVIPGlInc3	FrVIPIncSec2	FrVIPRisDiv
Single Premium contracts issued prior to April 16,1990	$	–	–	–	–	–
Single Premium contracts issued on or after April 16, 1990		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		5,522	10,242	5,069	4,516	24,928
Total	$	5,522	10,242	5,069	4,516	24,928
	FrVIPSCapV1		JAspBal	JAspForty	JAspGlTechS	JAspRMgCore
Single Premium contracts issued prior to April 16,1990	$	–	–	1,374	922	–
Single Premium contracts issued on or after April 16, 1990		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		20,959	1,304	16,735	5,718	1,150
Total	$	20,959	1,304	18,109	6,640	1,150
	JAspIntGroS2		JAspIntGroS	LBTShrtDBd	MFSInvGrSt	MFSValue
Single Premium contracts issued prior to April 16,1990	$	–	12,418	6,716	–	–
Single Premium contracts issued on or after April 16, 1990		–	–	95	–	–
Multiple Payment and Flexible Premium contracts		28,961	17,956	14,142	1,562	6,638
Total	$	28,961	30,374	20,953	1,562	6,638
	NVITAstAll2		NVITBnd2	NVITGlobGr2	NVITGroInc2	NVITGrowth2
Single Premium contracts issued prior to April 16,1990	$	–	–	–	–	–
Single Premium contracts issued on or after April 16, 1990		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		3,347	3,107	6,622	315	6,992
Total	$	3,347	3,107	6,622	315	6,992

(Continued)

58

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	NVITFHiInc		NVITFHiInc3	NVITEmMrkts	NVITEmMrkts3	NVITGlUtl
Single Premium contracts issued prior to April 16,1990	$	–	–	10,890	–	6,392
Single Premium contracts issued on or after April 16, 1990		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		968	3,404	9,773	26,290	9,631
Total	$	968	3,404	20,663	26,290	16,023
	NVITIntGro		NVITGlFin	NVITGlHlth	NVITGlHlth3	NVITGlTech
Single Premium contracts issued prior to April 16,1990	$	9,160	1,144	2,327	–	1,166
Single Premium contracts issued on or after April 16, 1990		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		9,086	4,557	891	2,447	2,365
Total	$	18,246	5,701	3,218	2,447	3,531
	NVITGlTech3		NVITGvtBd	NVITGrowth	NVITIntIdx6	NVITIntValI
Single Premium contracts issued prior to April 16,1990	$	–	19,515	3,470	–	–
Single Premium contracts issued on or after April 16, 1990		–	182	–	–	–
Multiple Payment and Flexible Premium contracts		2,437	47,227	109,539	1,251	4,379
Total	$	2,437	66,924	113,009	1,251	4,379
	NVITIntVal3		NVITIDAgg2	NVITIDCon2	NVITIDMod2	NVITIDModAg2
Single Premium contracts issued prior to April 16,1990	$	–	50	701	6,199	4,485
Single Premium contracts issued on or after April 16, 1990		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		12,359	24,867	3,180	34,458	41,524
Total	$	12,359	24,917	3,881	40,657	46,009
	NVITIDModCon2		NVITMdCpGr	NVITMidCap	NVITMyMkt	NVITSmCapGr
Single Premium contracts issued prior to April 16,1990	$	6,338	1,938	6,501	51,327	1,955
Single Premium contracts issued on or after April 16, 1990		–	–	8	489	16
Multiple Payment and Flexible Premium contracts		12,311	6,781	34,224	121,727	7,001
Total	$	18,649	8,719	40,733	173,543	8,972
	NVITSmCapVal		NVITSmComp	NVITNWFund	NVITNWLead	NVITUSGro
Single Premium contracts issued prior to April 16,1990	$	10,100	7,600	19,131	262	970
Single Premium contracts issued on or after April 16, 1990		201	142	148	–	–
Multiple Payment and Flexible Premium contracts		48,440	159,416	485,952	3,435	3,236
Total	$	58,741	167,158	505,231	3,697	4,206
	NVITVKVal		NVITMltSec	NBTBal	NBTAFasc	NBTAGro
Single Premium contracts issued prior to April 16,1990	$	–	2,278	–	–	14,434
Single Premium contracts issued on or after April 16, 1990		–	–	–	–	499
Multiple Payment and Flexible Premium contracts		5,382	6,607	540	597	104,598
Total	$	5,382	8,885	540	597	119,531

(Continued)

59

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	NBTAGuard		NBTAInt	NBTAMCGrS	NBTAPart	NBTARegS
Single Premium contracts issued prior to April 16,1990	$	826	–	–	14,087	–
Single Premium contracts issued on or after April 16, 1990		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		10,851	2,278	4,448	138,474	1,132
Total	$	11,677	2,278	4,448	152,561	1,132
	NBTSocRes		OppBal	OppCapAp	OppBdFd	OppGlSec3
Single Premium contracts issued prior to April 16,1990	$	–	18,469	7,398	7,406	–
Single Premium contracts issued on or after April 16, 1990		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		2,546	64,185	60,272	52,668	45,691
Total	$	2,546	82,654	67,670	60,074	45,691
	OppGlSec		OppHighInc3	OppHighInc	OppMStSCap	OppMSt
Single Premium contracts issued prior to April 16,1990	$	25,870	–	–	–	819
Single Premium contracts issued on or after April 16, 1990		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		178,829	302	3,667	7,444	9,307
Total	$	204,699	302	3,667	7,444	10,126
	OppMidCap		PVTGroInc	PVTIntlEq	PVTVoygr	TRoeBlChip2
Single Premium contracts issued prior to April 16,1990	$	1,016	–	–	–	–
Single Premium contracts issued on or after April 16, 1990		–	–	–	–	–
Multiple Payment and Flexible Premium contracts		8,060	696	2,769	267	2,417
Total	$	9,076	696	2,769	267	2,417
	TRowEqInc2		TRowLtdTBd2	DrySRGro	VEWrldBd	VEWrldEMkt
Single Premium contracts issued prior to April 16,1990	$	–	–	1,652	7,038	12,353
Single Premium contracts issued on or after April 16, 1990		–	–	–	118	–
Multiple Payment and Flexible Premium contracts		8,475	1,139	54,467	11,797	59,218
Total	$	8,475	1,139	56,119	18,953	71,571
	VEWrldHAs		VKUCorPlus	VKUEmMkt	VKUUSRE	WFVDisc
Single Premium contracts issued prior to April 16,1990	$	22,405	–	1,267	17,289	4,746
Single Premium contracts issued on or after April 16, 1990		–	–	118	–	–
Multiple Payment and Flexible Premium contracts		56,805	2,365	10,448	121,123	47,192
Total	$	79,210	2,365	11,833	138,412	51,938
	WFVOpp
Single Premium contracts issued prior to April 16,1990	$	21,507
Single Premium contracts issued on or after April 16, 1990		132
Multiple Payment and Flexible Premium contracts		183,769
Total	$	205,408

(Continued)

60

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

(4) Death Benefits

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

(5) Policy Loans (Net of Repayments)

Contract provisions allow contract owners to borrow up to 90% (50% during first year of single and modified single premium contracts) of a policy’s cash surrender value. For single premium contracts issued prior to April 16, 1990, 6.5% interest is due and payable annually in advance of the policy anniversary date. For single premium contracts issued on or after April 16, 1990, multiple payment, flexible premium, modified single and last survivor flexible premium contracts, 6% interest is due and payable in advance on the policy anniversary when there is a loan outstanding on the policy.

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

(6) Related Party Transactions

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

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

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

For the periods ended December 31, 2007 and 2006, total transfers into the Account from the fixed account were $25,005,246 and $25,634,866, respectively, and total transfers from the Account to the fixed account were $26,261,704 and $30,150,545, respectively.

(Continued)

61

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

(7) Financial Highlights

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

	Contract Expense Rate*	Units	Unit     Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Modified Single Premium contracts and Last Survivor Flexible Premium contracts
AIM VIF – Basic Value Fund – Series I
2007	0.00%	1,070	$	17.641592	$	18,877	0.50%	1.54%
2006	0.00%	1,192		17.373346		20,709	0.55%	13.20%
2005	0.00%	1,026		15.346928		15,746	0.09%	5.74%
2004	0.00%	738		14.514365		10,712	0.00%	11.07%
2003	0.00%	1,146		13.067831		14,976	0.11%	30.68%	05/01/03
AIM VIF – Capital Appreciation Fund – Series I
2007	0.00%	692		17.125365		11,851	0.00%	12.01%
2005	0.00%	780		14.382523		11,218	0.04%	8.84%
2004	0.00%	76		13.214909		1,004	0.00%	6.63%
2003	0.00%	78		12.393708		967	0.00%	23.94%	05/01/03
AIM VIF – Capital Development Fund – Series I
2007	0.00%	2,980		21.270438		63,386	0.00%	10.84%
2006	0.00%	2,070		19.189430		39,722	0.00%	16.52%
2005	0.00%	2,094		16.468791		34,486	0.00%	9.60%
2004	0.00%	2,534		15.025595		38,075	0.00%	15.50%
2003	0.00%	286		13.009212		3,721	0.00%	30.09%	05/01/03
AllianceBernstein VPS – Growth and Income Portfolio – Class A
2007	0.00%	18,646		17.929588		334,315	1.55%	5.12%
2006	0.00%	19,406		17.056580		331,000	1.47%	17.29%
2005	0.00%	17,122		14.542693		249,000	1.68%	4.87%
2004	0.00%	18,484		13.867818		256,333	0.96%	11.46%
2003	0.00%	10,465		12.441750		130,203	0.00%	24.42%	05/01/03
AllianceBernstein VPS – Small/Mid Cap Value Portfolio – Class A
2007	0.00%	4,368		20.478040		89,448	1.06%	1.70%
2006	0.00%	2,614		20.134859		52,633	0.39%	14.42%
2005	0.00%	3,250		17.597332		57,191	0.72%	6.91%
2004	0.00%	6,962		16.459431		114,591	0.13%	19.30%
2003	0.00%	3,645		13.796395		50,288	0.02%	37.96%	05/01/03
American Century VP – Balanced Fund – Class I
2007	0.00%	27,022		21.683809		585,940	2.12%	4.94%
2006	0.00%	29,950		20.663955		618,885	1.93%	9.62%
2005	0.00%	40,316		18.850696		759,985	1.83%	4.93%
2004	0.00%	40,968		17.964228		735,958	1.68%	9.78%
2003	0.00%	39,618		16.364159		648,315	2.53%	19.46%
American Century VP – Capital Appreciation Fund – Class I
2007	0.00%	57,452		23.730825		1,363,383	0.00%	45.80%
2006	0.00%	58,212		16.275964		947,456	0.00%	17.22%
2005	0.00%	73,308		13.885054		1,017,886	0.00%	22.06%
2004	0.00%	71,068		11.375351		808,423	0.00%	7.58%
2003	0.00%	78,088		10.573426		825,658	0.00%	20.47%
American Century VP – Income & Growth Fund – Class I
2007	0.00%	27,666		15.233128		421,440	1.88%	-0.07%
2006	0.00%	28,052		15.243369		427,607	1.88%	17.09%
2005	0.00%	27,378		13.018850		356,430	2.03%	4.63%
2004	0.00%	42,110		12.442664		523,961	1.44%	12.99%
2003	0.00%	57,191		11.011963		629,785	1.30%	29.35%
American Century VP – Inflation Protection Fund – Class II
2007	0.00%	16,186		12.340997		199,751	4.41%	9.49%
2006	0.00%	14,560		11.270913		164,104	3.22%	1.59%
2005	0.00%	10,992		11.094803		121,954	4.38%	1.56%
2004	0.00%	7,602		10.924094		83,045	3.57%	5.81%
2003	0.00%	739		10.324182		7,630	1.88%	3.24%	04/30/03

(Continued)

62

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit     Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
American Century VP – International Fund – Class I
2007	0.00%	38,002	$	27.938306	$	1,061,712	0.72%	18.06%
2006	0.00%	42,276		23.665218		1,000,471	1.65%	25.03%
2005	0.00%	52,474		18.928348		993,246	1.27%	13.25%
2004	0.00%	63,654		16.713189		1,063,861	0.58%	14.92%
2003	0.00%	93,653		14.542846		1,361,981	0.75%	24.51%
American Century VP – International Fund – Class III
2007	0.00%	25,082		17.230511		432,176	0.60%	18.06%
2006	0.00%	20,366		14.595156		297,245	1.19%	25.03%
2005	0.00%	20,404		11.673757		238,191	0.00%	16.74%	05/02/05
American Century VP – Mid Cap Value Fund – Class I
2007	0.00%	3,036		13.306496		40,399	0.70%	-2.31%
2006	0.00%	5,932		13.620466		80,797	1.31%	20.30%
2005	0.00%	956		11.322176		10,824	1.06%	13.22%	05/02/05
American Century VP – Ultra® Fund – Class I
2007	0.00%	9,952		13.288079		132,243	0.00%	21.02%
2006	0.00%	9,430		10.980437		103,546	0.00%	-3.28%
2005	0.00%	9,754		11.352287		110,730	0.00%	2.17%
2004	0.00%	12,672		11.111676		140,807	0.00%	10.68%
2003	0.00%	8,464		10.039885		84,978	0.00%	24.90%
American Century VP – Value Fund – Class I
2007	0.00%	72,996		26.987072		1,969,948	1.65%	-5.14%
2006	0.00%	72,824		28.448790		2,071,755	1.39%	18.65%
2005	0.00%	73,392		23.976512		1,759,684	0.88%	5.03%
2004	0.00%	80,992		22.827520		1,848,846	1.01%	14.33%
2003	0.00%	94,777		19.965823		1,892,301	1.09%	28.96%
American Century VP – VistaSM Fund – Class I
2007	0.00%	5,970		17.466180		104,273	0.00%	39.77%
Credit Suisse Trust – Global Small Cap Portfolio
2007	0.00%	8,174		16.814740		137,444	0.00%	-3.96%
2006	0.00%	11,692		17.507392		204,696	0.00%	13.20%
2005	0.00%	12,466		15.465259		192,790	0.00%	16.14%
2004	0.00%	11,532		13.315648		153,556	0.00%	17.99%
2003	0.00%	11,132		11.285456		125,630	0.00%	47.66%
Credit Suisse Trust – International Focus Portfolio
2007	0.00%	56,358		17.966043		1,012,530	1.08%	16.60%
2006	0.00%	90,002		15.408829		1,386,825	1.03%	18.65%
2005	0.00%	94,820		12.986442		1,231,374	0.91%	17.44%
2004	0.00%	103,404		11.058069		1,143,449	0.99%	14.74%
2003	0.00%	111,879		9.637324		1,078,214	0.49%	33.09%
Credit Suisse Trust – Small Cap Core I Portfolio
2007	0.00%	94,682		14.178269		1,342,427	0.00%	-0.83%
2006	0.00%	104,538		14.297420		1,494,624	0.00%	4.77%
2005	0.00%	127,936		13.646704		1,745,905	0.00%	-2.68%
2004	0.00%	136,576		14.022473		1,915,133	0.00%	10.87%
2003	0.00%	136,928		12.647723		1,731,827	0.00%	48.55%
Dreyfus IP – Small Cap Stock Index Portfolio – Service Shares
2007	0.00%	26,930		15.709599		423,060	0.37%	-0.65%
2006	0.00%	29,498		15.813075		466,454	0.36%	14.41%
2005	0.00%	38,236		13.821296		528,471	0.00%	7.23%
2004	0.00%	40,584		12.889095		523,091	0.50%	21.88%
2003	0.00%	38,496		10.574853		407,090	0.33%	37.78%
Dreyfus Stock Index Fund, Inc. – Initial Shares
2007	0.00%	420,020		26.340376		11,063,485	1.70%	5.26%
2006	0.00%	481,242		25.025241		12,043,197	1.65%	15.50%
2005	0.00%	514,448		21.667325		11,146,712	1.60%	4.69%
2004	0.00%	578,778		20.696422		11,978,634	1.80%	10.64%
2003	0.00%	632,333		18.706070		11,828,465	1.51%	28.36%

(Continued)

63

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit     Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Dreyfus VIF – Appreciation Portfolio – Initial Shares
2007	0.00%	53,388	$	18.514426	$	988,448	1.61%	7.13%
2006	0.00%	57,100		17.281782		986,790	1.49%	16.48%
2005	0.00%	63,038		14.837109		935,302	0.02%	4.38%
2004	0.00%	68,432		14.214838		972,750	1.63%	5.05%
2003	0.00%	77,680		13.532029		1,051,168	1.40%	21.17%
Dreyfus VIF – Developing Leaders Portfolio – Initial Shares
2007	0.00%	178		14.026060		2,497	0.83%	-11.06%
2006	0.00%	3,288		15.770049		51,852	0.43%	3.77%
2005	0.00%	5,054		15.197076		76,806	0.00%	5.80%
2004	0.00%	3,802		14.363942		54,612	0.22%	11.34%
2003	0.00%	4,756		12.900917		61,357	0.08%	29.01%	05/01/03
Dreyfus VIF – Growth and Income Portfolio – Initial Shares
2007	0.00%	33,820		17.918567		606,006	0.76%	8.45%
2006	0.00%	38,470		16.523102		635,644	0.77%	14.51%
2005	0.00%	35,564		14.429123		513,157	1.34%	3.35%
2004	0.00%	37,814		13.961156		527,927	1.23%	7.47%
2003	0.00%	36,562		12.991038		474,978	0.84%	26.57%
Federated IS – American Leaders Fund II – Primary Shares
2006	0.00%	406		16.967010		6,889	1.47%	16.81%
2005	0.00%	362		14.525597		5,258	1.33%	5.02%
2004	0.00%	306		13.830995		4,232	0.41%	9.78%
Federated IS – Quality Bond Fund II – Primary Shares
2007	0.00%	17,856		12.999880		232,126	4.97%	5.38%
2006	0.00%	19,464		12.335785		240,104	3.43%	4.15%
2005	0.00%	19,802		11.843786		234,531	3.65%	1.30%
2004	0.00%	12,318		11.692084		144,023	4.98%	3.62%
2003	0.00%	11,878		11.283621		134,027	3.93%	4.65%
Fidelity® VIP – Equity-Income Portfolio – Initial Class
2007	0.00%	278,062		26.368140		7,331,978	1.77%	1.53%
2006	0.00%	307,480		25.970609		7,985,443	3.30%	20.19%
2005	0.00%	348,510		21.607366		7,530,383	1.64%	5.87%
2004	0.00%	375,788		20.410267		7,669,933	1.56%	11.53%
2003	0.00%	409,083		18.300351		7,486,362	1.80%	30.33%
Fidelity® VIP – Growth Portfolio – Initial Class
2007	0.00%	275,376		24.975885		6,877,759	0.82%	26.96%
2006	0.00%	294,384		19.671592		5,791,002	0.40%	6.85%
2005	0.00%	341,122		18.410455		6,280,211	0.51%	5.80%
2004	0.00%	365,242		17.401445		6,355,739	0.27%	3.38%
2003	0.00%	393,063		16.832769		6,616,339	0.27%	32.85%
Fidelity® VIP – High Income Portfolio – Initial Class
2007	0.00%	140,988		15.287268		2,155,321	7.41%	2.79%
2006	0.00%	171,428		14.872903		2,549,632	7.80%	11.24%
2005	0.00%	185,840		13.370516		2,484,777	16.14%	2.70%
2004	0.00%	222,416		13.018901		2,895,612	8.82%	9.59%
2003	0.00%	277,638		11.879372		3,298,165	5.94%	27.26%
Fidelity® VIP – High Income Portfolio – Initial Class R
2007	0.00%	10,246		9.890596		101,339	11.21%	-1.09%	05/01/07
Fidelity® VIP – Overseas Portfolio – Initial Class
2007	0.00%	74,300		26.138222		1,942,070	3.29%	17.31%
2006	0.00%	89,902		22.280924		2,003,100	0.91%	18.08%
2005	0.00%	101,850		18.869419		1,921,850	0.71%	19.05%
2004	0.00%	112,550		15.850578		1,783,983	1.14%	13.64%
2003	0.00%	104,335		13.948630		1,455,330	0.83%	43.37%
Fidelity® VIP – Overseas Portfolio – Service Class R
2007	0.00%	38,404		17.283296		663,748	3.21%	17.23%
2006	0.00%	31,164		14.743687		459,472	0.77%	17.95%
2005	0.00%	21,148		12.499996		264,350	0.00%	25.00%	05/02/05

(Continued)

64

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit     Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Fidelity® VIP II – Asset Manager Portfolio – Initial Class
2007	0.00%	54,336	$	22.938056	$	1,246,362	6.08%	15.50%
2006	0.00%	66,348		19.859153		1,317,615	2.71%	7.32%
2005	0.00%	71,156		18.505123		1,316,751	2.76%	4.04%
2004	0.00%	80,426		17.785832		1,430,443	2.76%	5.47%
2003	0.00%	78,858		16.863587		1,329,829	3.62%	17.97%
Fidelity® VIP II – Contrafund® Portfolio – Initial Class
2007	0.00%	224,578		38.182151		8,574,871	0.93%	17.59%
2006	0.00%	244,798		32.470034		7,948,599	1.27%	11.72%
2005	0.00%	264,040		29.064668		7,674,235	0.29%	16.94%
2004	0.00%	258,620		24.855086		6,428,022	0.34%	15.48%
2003	0.00%	271,532		21.523942		5,844,439	0.46%	28.46%
Fidelity® VIP II – Investment Grade Bond Portfolio – Service Class
2007	0.00%	30,732		11.826500		363,452	4.06%	4.21%
2006	0.00%	27,706		11.348586		314,424	3.27%	4.30%
2005	0.00%	24,210		10.880732		263,423	1.67%	2.08%
2004	0.00%	24,840		10.659014		264,770	1.88%	4.32%
2003	0.00%	998		10.217718		10,197	0.00%	2.18%	05/01/03
Fidelity® VIP III – Growth Opportunities Portfolio – Initial Class
2007	0.00%	45,896		15.610808		716,474	0.00%	23.18%
2006	0.00%	47,470		12.672871		601,581	0.69%	5.46%
2005	0.00%	52,346		12.017274		629,056	0.95%	8.89%
2004	0.00%	61,482		11.036087		678,521	0.53%	7.19%
2003	0.00%	60,543		10.295709		623,333	0.74%	29.87%
Fidelity® VIP III – Mid Cap Portfolio – Service Class
2007	0.00%	30,584		27.011367		826,116	0.70%	15.49%
2006	0.00%	29,260		23.389128		684,366	0.25%	12.59%
2005	0.00%	37,294		20.773676		774,733	0.00%	18.20%
2004	0.00%	27,716		17.574515		487,095	0.00%	24.77%
2003	0.00%	9,873		14.085331		139,064	0.00%	40.85%	05/01/03
Fidelity® VIP III – Value Strategies Portfolio – Service Class
2007	0.00%	21,268		16.996302		361,477	0.83%	5.60%
2006	0.00%	14,632		16.095011		235,502	0.41%	16.20%
2005	0.00%	9,800		13.851491		135,745	0.00%	2.55%
2004	0.00%	27,044		13.506506		365,270	0.00%	13.99%
2003	0.00%	26,162		11.849148		309,997	0.00%	57.79%
Fidelity® VIP IV – Energy Portfolio – Service Class 2
2007	0.00%	27,034		22.953063		620,513	0.12%	45.64%
2006	0.00%	28,390		15.759845		447,422	0.73%	16.62%
2005	0.00%	11,834		13.514321		159,928	0.65%	35.14%	05/02/05
Fidelity® VIP IV – Freedom Fund 2010 Portfolio – Service Class
2007	0.00%	4,590		12.888793		59,160	5.88%	8.65%
2006	0.00%	8,244		11.863160		97,800	3.42%	9.78%
2005	0.00%	2,002		10.806063		21,634	0.56%	8.06%	05/02/05
Fidelity® VIP IV – Freedom Fund 2020 Portfolio – Service Class
2007	0.00%	8,938		13.695591		122,411	2.17%	10.17%
2006	0.00%	7,022		12.431698		87,295	1.69%	11.81%
2005	0.00%	5,140		11.118664		57,150	0.86%	11.19%	05/02/05
Franklin Templeton VIP – Developing Markets Securities Fund – Class 3
2007	0.00%	12,404		21.120230		261,975	2.20%	28.70%
2006	0.00%	13,590		16.410826		223,023	1.19%	28.17%
2005	0.00%	14,152		12.804274		181,206	0.53%	28.04%	05/02/05
Franklin Templeton VIP – Foreign Securities Fund – Class 1
2007	0.00%	5,050		24.554735		124,001	2.23%	15.79%
2006	0.00%	6,940		21.206570		147,174	1.41%	21.70%
2005	0.00%	8,296		17.425708		144,564	1.37%	10.48%
2004	0.00%	25,722		15.773327		405,722	1.10%	18.87%
2003	0.00%	4,015		13.269107		53,275	0.79%	32.69%	05/01/03
Franklin Templeton VIP – Foreign Securities Fund – Class 3
2007	0.00%	29,610		15.828965		468,696	2.03%	15.45%
2006	0.00%	28,060		13.711150		384,735	1.38%	21.46%
2005	0.00%	21,384		11.288544		241,394	0.39%	12.89%	05/02/05

(Continued)

65

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Franklin Templeton VIP – Global Income Securities Fund – Class 3
2007	0.00%	12,206	$	12.380292	$	151,114	2.64%	11.03%
2006	0.00%	1,668		11.150160		18,598	2.45%	12.84%
2005	0.00%	1,034		9.881172		10,217	7.95%	-1.19%	05/02/05
Franklin Templeton VIP – Income Securities Fund – Class 2
2007	0.00%	11,684		11.637657		135,974	3.26%	3.76%
2006	0.00%	7,444		11.216304		83,494	0.00%	12.16%	05/01/06
Franklin Templeton VIP – Rising Dividends Securities Fund – Class 1
2007	0.00%	26,128		16.266644		425,015	2.53%	-2.41%
2006	0.00%	23,316		16.669002		388,654	1.22%	17.43%
2005	0.00%	20,818		14.195085		295,513	1.09%	3.68%
2004	0.00%	30,080		13.690957		411,824	0.66%	11.25%
2003	0.00%	15,727		12.306508		193,544	0.20%	23.07%	05/01/03
Franklin Templeton VIP – Small Cap Value Securities Fund – Class 1
2007	0.00%	7,310		20.738061		151,595	0.88%	-2.14%
2006	0.00%	9,688		21.190555		205,294	0.82%	17.30%
2005	0.00%	8,690		18.064784		156,983	0.91%	8.99%
2004	0.00%	7,248		16.575156		120,137	0.19%	24.09%
2003	0.00%	2,401		13.357313		32,071	0.12%	33.57%	05/01/03
Gartmore GVIT –Small Cap Growth Fund: Class I–Intial Funding by Depositor
2006	0.00%	23,198		8.204136		190,320	0.00%	3.21%
2005	0.00%	18,340		7.949160		145,788	0.00%	8.09%
2004	0.00%	38,172		7.354229		280,726	0.00%	13.42%
2003	0.00%	29,802		6.484322		193,246	0.00%	34.27%
Janus Aspen Series – Balanced Portfolio – Service Shares
2007	0.00%	624		15.660699		9,772	1.92%	10.29%
2006	0.00%	4,932		14.199918		70,034	1.96%	10.41%
2005	0.00%	5,050		12.860543		64,946	2.56%	7.66%
2004	0.00%	668		11.945467		7,980	3.27%	8.29%
Janus Aspen Series – Forty Portfolio – Service Shares
2007	0.00%	51,646		12.409688		640,911	0.19%	36.63%
2006	0.00%	29,426		9.082400		267,259	0.14%	9.12%
2005	0.00%	51,138		8.323593		425,652	0.01%	12.56%
2004	0.00%	46,432		7.395085		343,369	0.02%	17.97%
2003	0.00%	57,199		6.268750		358,566	0.25%	20.23%
Janus Aspen Series – Global Technology Portfolio – Service Shares
2007	0.00%	53,308		5.412137		288,510	0.37%	21.70%
2006	0.00%	47,252		4.447186		210,138	0.00%	7.83%
2005	0.00%	48,024		4.124323		198,066	0.00%	11.55%
2004	0.00%	46,310		3.697308		171,222	0.00%	0.57%
2003	0.00%	63,964		3.676479		235,162	0.00%	46.47%
Janus Aspen Series – INTECH Risk-Managed Core Portfolio – Service Shares
2007	0.00%	848		18.842190		15,978	0.36%	6.13%
2006	0.00%	2,146		17.753498		38,099	0.10%	10.77%
2005	0.00%	1,406		16.027544		22,535	1.43%	10.91%
Janus Aspen Series – International Growth Portfolio – Service II Shares
2007	0.00%	20,534		14.893765		305,829	0.50%	28.07%
2006	0.00%	26,134		11.629148		303,916	1.97%	16.29%	05/01/06
Janus Aspen Series – International Growth Portfolio – Service Shares
2007	0.00%	65,132		17.876194		1,164,312	0.43%	28.02%
2006	0.00%	53,060		13.963792		740,919	1.92%	46.63%
2005	0.00%	38,214		9.523236		363,921	1.14%	31.94%
2004	0.00%	47,840		7.217918		345,305	0.83%	18.69%
2003	0.00%	43,445		6.081514		264,211	0.99%	34.53%
Lehman Brothers AMT – Short Duration Bond Portfolio – I Class
2007	0.00%	47,302		16.571972		783,887	2.65%	4.77%
2006	0.00%	50,648		15.817282		801,114	3.06%	4.20%
2005	0.00%	52,164		15.179497		791,823	2.61%	1.44%
2004	0.00%	57,882		14.963540		866,120	3.64%	0.78%
2003	0.00%	68,260		14.847857		1,013,515	4.41%	2.42%

(Continued)

66

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
MFS VIT – Investors Growth Stock Series – Initial Class
2007	0.00%	760	$	15.850552	$	12,046	0.34%	11.36%
2006	0.00%	804		14.233850		11,444	0.00%	7.58%
2005	0.00%	704		13.231476		9,315	0.38%	4.49%
2004	0.00%	1,058		12.663111		13,398	0.00%	9.18%
MFS VIT – Value Series – Initial Class
2007	0.00%	9,498		19.812092		188,175	0.91%	7.91%
2006	0.00%	6,766		18.360218		124,225	0.80%	20.84%
2005	0.00%	2,450		15.193770		37,225	0.65%	6.66%
2004	0.00%	2,060		14.245099		29,345	0.34%	15.18%
2003	0.00%	255		12.367820		3,154	0.00%	23.68%	05/01/03
Nationwide VIT – American Funds Asset Allocation Fund – Class II
2007	0.00%	18,106		11.205324		202,884	2.56%	6.14%
2006	0.00%	9,828		10.556998		103,754	3.56%	5.57%	05/01/06
Nationwide VIT – American Funds Bond Fund – Class II
2007	0.00%	6,166		10.853118		66,920	8.87%	2.98%
Nationwide VIT – American Funds Global Growth Fund – Class II
2007	0.00%	8,996		12.399481		111,546	2.69%	14.36%
2006	0.00%	2,236		10.842096		24,243	0.07%	8.42%	05/01/06
Nationwide VIT – American Funds Growth Fund – Class II
2007	0.00%	4,432		11.597638		51,401	0.68%	11.90%
2006	0.00%	288		10.364424		2,985	1.29%	3.64%	05/01/06
Nationwide VIT – Federated High Income Bond Fund – Class I
2007	0.00%	5,886		14.296317		84,148	7.20%	3.13%
2006	0.00%	6,018		13.861826		83,420	7.10%	10.60%
2005	0.00%	8,510		12.532998		106,656	6.81%	2.38%
2004	0.00%	7,390		12.241616		90,466	8.50%	10.10%
2003	0.00%	5,828		11.119017		64,802	9.25%	11.19%	05/01/03
Nationwide VIT – Federated High Income Bond Fund – Class III
2007	0.00%	9,004		12.027193		108,293	8.02%	3.17%
2006	0.00%	4,016		11.657910		46,818	7.03%	10.60%
2005	0.00%	1,936		10.540776		20,407	6.33%	5.41%	05/02/05
Nationwide VIT – Gartmore Emerging Markets Fund – Class I
2007	0.00%	4,872		36.889137		179,724	0.71%	45.58%
2006	0.00%	5,092		25.339713		129,030	0.72%	36.72%
2005	0.00%	11,646		18.534273		215,850	0.61%	32.64%
2004	0.00%	16,620		13.973799		232,245	0.93%	20.74%
2003	0.00%	19,194		11.573140		222,135	0.66%	65.26%
Nationwide VIT – Gartmore Emerging Markets Fund – Class III
2007	0.00%	44,814		26.524857		1,188,685	0.74%	45.55%
2006	0.00%	26,004		18.224168		473,901	0.78%	36.64%
2005	0.00%	17,390		13.336908		231,929	0.19%	33.37%	05/02/05
Nationwide VIT – Gartmore Global Utilities Fund – Class I
2007	0.00%	13,688		24.676248		337,768	2.36%	20.43%
2006	0.00%	10,732		20.489395		219,892	2.82%	37.56%
2005	0.00%	12,822		14.894755		190,981	2.16%	6.39%
2004	0.00%	12,104		14.000446		169,461	1.92%	29.97%
2003	0.00%	3,190		10.772327		34,364	0.70%	24.05%
Nationwide VIT – Gartmore International Growth Fund – Class I
2007	0.00%	13,744		17.076402		234,698	0.38%	27.15%
2006	0.00%	15,102		13.430598		202,829	0.78%	32.96%
2005	0.00%	3,756		10.100861		37,939	1.03%	30.21%
2004	0.00%	1,590		7.757434		12,334	1.40%	14.19%
2003	0.00%	2,327		6.793220		15,808	0.00%	35.62%
Nationwide VIT – Global Financial Services Fund – Class I
2007	0.00%	6,516		19.621675		127,855	3.13%	-1.05%
2006	0.00%	1,856		19.830405		36,805	1.89%	20.32%
2005	0.00%	952		16.481268		15,690	2.00%	11.15%
2004	0.00%	1,534		14.827817		22,746	1.45%	20.99%
2003	0.00%	1,548		12.255125		18,971	0.88%	41.45%

(Continued)

67

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Nationwide VIT – Global Health Sciences Fund – Class I
2007	0.00%	2,924	$	15.497697	$	45,315	0.08%	13.16%
2006	0.00%	4,354		13.695316		59,629	0.00%	2.71%
2005	0.00%	7,210		13.334230		96,140	0.00%	8.44%
2004	0.00%	11,908		12.296466		146,426	0.00%	7.86%
2003	0.00%	7,254		11.400451		82,699	0.00%	36.69%
Nationwide VIT – Global Health Sciences Fund – Class III
2007	0.00%	1,306		12.491648		16,314	0.09%	13.23%
2006	0.00%	3,408		11.032385		37,598	0.00%	2.70%
2005	0.00%	230		10.742057		2,471	0.00%	7.42%	05/02/05
Nationwide VIT – Global Technology and Communications Fund – Class I
2007	0.00%	10,448		4.241547		44,316	0.00%	20.09%
2006	0.00%	11,308		3.531877		39,938	0.00%	11.17%
2005	0.00%	15,970		3.177040		50,737	0.00%	-0.52%
2004	0.00%	24,430		3.193545		78,018	0.00%	4.31%
2003	0.00%	27,880		3.061527		85,355	0.00%	55.23%
Nationwide VIT – Global Technology and Communications Fund – Class III
2007	0.00%	1,330		16.444438		21,871	0.00%	20.19%
2006	0.00%	172		13.682536		2,353	0.00%	11.08%
2005	0.00%	2,428		12.317458		29,907	0.00%	23.17%	05/02/05
Nationwide VIT – Government Bond Fund – Class I
2007	0.00%	97,024		20.096370		1,949,830	4.45%	7.16%
2006	0.00%	95,134		18.753954		1,784,139	4.11%	3.34%
2005	0.00%	105,202		18.147625		1,909,166	3.64%	3.26%
2004	0.00%	114,686		17.574111		2,015,504	5.48%	3.26%
2003	0.00%	141,781		17.018937		2,412,962	3.14%	2.00%
Nationwide VIT – Growth Fund – Class I
2007	0.00%	104,626		15.454811		1,616,975	0.17%	19.54%
2006	0.00%	118,580		12.928125		1,533,017	0.05%	6.17%
2005	0.00%	135,380		12.177042		1,648,528	0.08%	6.50%
2004	0.00%	145,006		11.433814		1,657,972	0.33%	8.16%
2003	0.00%	161,969		10.571536		1,712,261	0.02%	32.74%
Nationwide VIT – International Value Fund – Class I
2007	0.00%	1,206		23.734976		28,624	2.06%	2.92%
2006	0.00%	2,190		23.062454		50,507	2.08%	22.67%
2005	0.00%	3,908		18.800450		73,472	1.34%	12.09%
2004	0.00%	11,032		16.772215		185,031	2.03%	20.29%
2003	0.00%	3,602		13.838062		49,845	0.00%	38.38%	05/01/03
Nationwide VIT – International Value Fund – Class III
2007	0.00%	10,900		14.468946		157,712	2.12%	2.93%
2006	0.00%	10,116		14.056822		142,199	2.01%	22.75%
2005	0.00%	6,630		11.451970		75,927	0.95%	14.52%	05/02/05
Nationwide VIT – Investor Destinations Aggressive Fund – Class II
2007	0.00%	5,888		16.743624		98,586	2.03%	5.96%
2006	0.00%	1,756		15.802084		27,748	2.11%	16.87%
2005	0.00%	530		13.521320		7,166	1.95%	7.93%
2004	0.00%	84		12.527746		1,052	1.75%	14.03%
2003	0.00%	86		10.986753		945	1.41%	31.87%
Nationwide VIT – Investor Destinations Conservative Fund – Class II
2007	0.00%	4,112		13.117367		53,939	3.97%	5.38%
2006	0.00%	3,274		12.447546		40,753	2.89%	6.16%
2005	0.00%	966		11.724859		11,326	2.78%	3.31%
2004	0.00%	5,030		11.349571		57,088	2.46%	4.65%
2003	0.00%	4,630		10.845040		50,213	2.37%	7.91%
Nationwide VIT – Investor Destinations Moderate Fund – Class II
2007	0.00%	89,402		14.896957		1,331,818	2.62%	5.66%
2006	0.00%	90,888		14.099052		1,281,435	2.50%	11.35%
2005	0.00%	72,624		12.661618		919,537	2.36%	5.34%
2004	0.00%	57,958		12.019313		696,615	2.27%	9.54%
2003	0.00%	26,164		10.972970		287,097	2.06%	20.05%

(Continued)

68

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Nationwide VIT – Investor Destinations Moderately Aggressive Fund – Class II
2007	0.00%	50,888	$	16.055259	$	817,020	2.25%	6.15%
2006	0.00%	47,128		15.125018		712,812	2.27%	14.54%
2005	0.00%	25,104		13.204972		331,498	2.14%	7.07%
2004	0.00%	24,722		12.332826		304,892	1.97%	12.09%
2003	0.00%	10,934		11.002361		120,300	1.54%	26.64%
Nationwide VIT – Investor Destinations Moderately Conservative Fund – Class II
2007	0.00%	13,564		14.088774		191,100	2.92%	5.86%
2006	0.00%	13,888		13.308971		184,835	2.76%	8.42%
2005	0.00%	9,208		12.275099		113,029	2.75%	4.49%
2004	0.00%	27,902		11.748118		327,796	2.48%	7.16%
2003	0.00%	21,041		10.963279		230,678	2.34%	13.70%
Nationwide VIT – Mid Cap Growth Fund – Class I
2007	0.00%	16,598		7.604065		126,212	0.00%	9.01%2
2006	0.00%	19,038		6.975264		132,795	0.00%	9.91%
2005	0.00%	24,418		6.346461		154,968	0.00%	9.74%
2004	0.00%	21,204		5.783113		122,625	0.00%	15.34%
2003	0.00%	85,532		5.014057		428,862	0.00%	40.13%
Nationwide VIT – Mid Cap Index Fund – Class I
2007	0.00%	51,172		18.152010		928,875	1.35%	7.56%
2006	0.00%	58,484		16.876236		986,990	1.13%	9.89%
2005	0.00%	65,296		15.357475		1,002,782	1.03%	12.10%
2004	0.00%	74,186		13.700026		1,016,350	0.54%	15.73%
2003	0.00%	87,632		11.837744		1,037,365	0.49%	34.65%
Nationwide VIT – Money Market Fund – Class I
2007	0.00%	553,934		15.235553		8,439,491	4.64%	4.79%2
2006	0.00%	307,156		14.538752		4,465,665	4.49%	4.53%
2005	0.00%	309,850		13.908651		4,309,596	2.64%	2.67%
2004	0.00%	336,040		13.547206		4,552,403	0.78%	0.81%
2003	0.00%	426,388		13.438171		5,729,875	0.63%	0.63%
Nationwide VIT – Multi-Manager Small Cap Growth Fund – Class I
2007	0.00%	17,950		9.004045		161,623	0.00%	9.75%
Nationwide VIT – Multi-Manager Small Cap Value Fund – Class I
2007	0.00%	71,274		23.666727		1,686,822	1.10%	-6.89%
2006	0.00%	98,728		25.419000		2,509,567	0.43%	17.29%
2005	0.00%	107,082		21.671283		2,320,604	0.06%	3.07%
2004	0.00%	125,486		21.025284		2,638,379	0.00%	17.30%
2003	0.00%	144,123		17.924637		2,583,352	0.00%	56.85%
Nationwide VIT – Multi-Manager Small Company Fund – Class I
2007	0.00%	118,982		32.550692		3,872,946	0.09%	2.13%
2006	0.00%	127,382		31.871050		4,059,798	0.11%	12.04%
2005	0.00%	133,578		28.446533		3,799,831	0.00%	12.32%
2004	0.00%	143,764		25.327151		3,641,133	0.00%	19.02%
2003	0.00%	163,826		21.279390		3,486,117	0.00%	41.01%
Nationwide VIT – Nationwide Fund – Class I
2007	0.00%	215,182		24.661007		5,306,605	1.05%	8.18%
2006	0.00%	247,594		22.796000		5,644,153	1.08%	13.63%
2005	0.00%	271,134		20.062025		5,439,497	0.91%	7.44%
2004	0.00%	283,884		18.672551		5,300,838	1.28%	9.75%
2003	0.00%	320,276		17.013568		5,449,038	0.56%	27.51%
Nationwide VIT – Nationwide Leaders Fund – Class I
2007	0.00%	5,280		17.979434		94,931	1.15%	11.56%
2006	0.00%	4,904		16.116355		79,035	0.97%	16.05%
2005	0.00%	2,942		13.887943		40,858	1.54%	10.31%
2004	0.00%	2,072		12,589767		26,086	0.52%	18.79%
2003	0.00%	680		10.598061		7,207	0.19%	25.38%
Nationwide VIT – U.S. Growth Leaders Fund – Class I
2007	0.00%	10,106		19.237188		194,411	0.00%	22.49%
2006	0.00%	9,376		15.705651		147,256	0.25%	-0.29%
2005	0.00%	5,658		15.751023		89,119	0.00%	11.96%
2004	0.00%	4,040		14.068165		56,835	0.00%	12.41%
2003	0.00%	4,436		12.515174		55,517	0.00%	52.14%

(Continued)

69

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Nationwide VIT – Van Kampen Comstock Value Fund – Class I
2007	0.00%	8,692	$	17.592080	$	152,910	1.71%	-2.22%
2006	0.00%	7,610		17.990877		136,911	1.74%	15.91%
2005	0.00%	5,522		15.522071		85,713	1.69%	4.25%
2004	0.00%	1,768		14.889740		26,325	1.56%	17.50%
2003	0.00%	75		12.672281		950	1.52%	26.72%	05/01/03
Nationwide VIT – Van Kampen Multi Sector Bond Fund – Class I
2007	0.00%	9,784		15.689482		153,506	4.10%	4.62%
2006	0.00%	10,602		14.995990		158,987	4.42%	4.84%
2005	0.00%	14,212		14.303985		203,288	3.89%	2.18%
2004	0.00%	12,326		13.998807		172,549	4.85%	6.53%
2003	0.00%	18,184		13.140266		238,943	5.47%	12.12%
Neuberger Berman AMT – Fasciano Portfolio – S Class Shares
2007	0.00%	544		15.355015		8,353	0.00%	0.52%
2006	0.00%	34		15.276302		519	0.00%	5.25%
2005	0.00%	854		14.513954		12,395	0.00%	2.90%
2004	0.00%	486		14.105334		6,855	0.00%	11.88%
Neuberger Berman AMT – Growth Portfolio- Class I
2007	0.00%	64,996		22.802283		1,482,057	0.00%	22.70%
2006	0.00%	77,208		18.584451		1,434,868	0.00%	14.07%
2005	0.00%	74,162		16.292408		1,208,278	0.00%	13.50%
2004	0.00%	79,436		14.354807		1,140,288	0.00%	16.60%
2003	0.00%	92,061		12.310867		1,133,351	0.00%	31.40%
Neuberger Berman AMT – Guardian Portfolio – I Class Shares
2007	0.00%	13,170		15.878484		209,120	0.26%	7.39%
2006	0.00%	20,178		14.786128		298,354	0.67%	13.38%
2005	0.00%	23,910		13.041591		311,824	0.14%	8.39%
2004	0.00%	34,354		12.031993		413,347	0.12%	15.81%
2003	0.00%	33,326		10.389042		346,225	0.84%	31.76%
Neuberger Berman AMT – International Portfolio – Class S
2007	0.00%	5,680		14.972222		85,042	1.68%	3.21%
2006	0.00%	5,640		14.506093		81,814	0.00%	23.45%
2005	0.00%	2,516		11.750261		29,564	0.22%	17.50%	05/02/05
Neuberger Berman AMT – Mid-Cap Growth Portfolio – Class S
2007	0.00%	950		22.685497		21,551	0.00%	22.20%
2005	0.00%	2,328		16.217741		37,755	0.00%	13.42%
2004	0.00%	3,532		14.298387		50,502	0.00%	16.03%
2003	0.00%	2,927		12.322580		36,068	0.00%	23.23%	05/01/03
Neuberger Berman AMT – Partners Portfolio- Class I
2007	0.00%	179,968		29.127775		5,242,067	0.64%	9.34%
2006	0.00%	188,418		26.640503		5,019,550	0.71%	12.24%
2005	0.00%	203,136		23.735143		4,821,462	1.02%	18.04%
2004	0.00%	200,296		20.106864		4,027,324	0.01%	18.98%
2003	0.00%	212,651		16.900050		3,593,813	0.00%	35.09%
Neuberger Berman AMT – Regency Portfolio – Class S
2007	0.00%	6,414		13.332382		85,514	0.66%	3.05%
2006	0.00%	4,738		12.937253		61,297	0.44%	10.94%
2005	0.00%	2,786		11.661977		32,490	0.00%	16.62%	05/02/05
Neuberger Berman AMT – Socially Responsive Portfolio Class I
2007	0.00%	2,698		18.328379		49,450	0.09%	7.61%
2006	0.00%	1,732		17.031699		29,499	0.17%	13.70%
2005	0.00%	2,042		14.979202		30,588	0.00%	6.86%
2004	0.00%	510		14.018027		7,149	0.00%	13.28%
2003	0.00%	42		12.374746		520	0.00%	23.75%	05/01/03
Oppenheimer VAF – Balanced Fund – Non-Service Shares
2007	0.00%	51,554		24.570849		1,266,726	2.57%	3.79%
2006	0.00%	64,490		23.674314		1,526,757	2.13%	11.15%
2005	0.00%	72,064		21.300283		1,534,984	1.76%	3.89%
2004	0.00%	76,060		20.502973		1,559,456	1.01%	10.10%
2003	0.00%	80,959		18.621945		1,507,614	2.82%	24.96%

(Continued)

70

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Oppenheimer VAF – Capital Appreciation Fund – Non-Service Shares
2007	0.00%	58,424	$	21.319679	$	1,245,581	0.23%	14.15%
2006	0.00%	68,276		18.677035		1,275,193	0.38%	7.95%
2005	0.00%	81,160		17.301818		1,404,216	0.93%	5.10%
2004	0.00%	83,842		16.462506		1,380,249	0.33%	6.94%
2003	0.00%	98,014		15.394717		1,508,898	0.38%	30.94%
Oppenheimer VAF – Core Bond Fund – Non-Service Shares
2007	0.00%	85,066		19.378308		1,648,435	5.26%	4.39%
2006	0.00%	87,354		18.563148		1,621,565	5.20%	5.28%
2005	0.00%	91,754		17.632382		1,617,842	5.34%	2.59%
2004	0.00%	96,616		17.187703		1,660,607	4.80%	5.49%
2003	0.00%	113,252		16.292834		1,845,196	5.67%	6.78%
Oppenheimer VAF – Global Securities Fund – Class 3
2007	0.00%	48,132		15.092302		726,423	1.25%	6.34%
2006	0.00%	44,318		14.192798		628,996	0.80%	17.69%
2005	0.00%	28,160		12.059670		339,600	0.00%	20.60%	05/02/05
Oppenheimer VAF – Global Securities Fund – Non-Service Shares
2007	0.00%	69,624		42.082850		2,929,976	1.37%	6.32%
2006	0.00%	80,632		39.581622		3,191,545	1.04%	17.69%
2005	0.00%	90,550		33.631650		3,045,346	1.07%	14.31%
2004	0.00%	105,104		29.422164		3,092,387	1.25%	19.16%
2003	0.00%	103,002		24.690704		2,543,192	0.76%	43.02%
Oppenheimer VAF – High Income Fund – Non-Service Shares
2007	0.00%	8,188		13.627157		111,579	6.11%	-0.10%
2006	0.00%	9,746		13.641009		132,945	6.97%	9.42%
2005	0.00%	8,710		12.466334		108,582	6.75%	2.31%
2004	0.00%	12,018		12.184423		146,432	4.23%	8.97%
2003	0.00%	6,913		11.181817		77,300	0.00%	11.82%	05/01/03
Oppenheimer VAF – Main Street Small Cap Fund® – Non-Service Shares
2007	0.00%	6,170		20.683895		127,620	0.32%	-1.21%
2006	0.00%	2,530		20.937110		52,971	0.14%	15.00%
2005	0.00%	1,242		18.206560		22,613	0.00%	9.92%
2004	0.00%	1,252		16.563464		20,737	0.00%	19.42%
2003	0.00%	2,855		13.869971		39,599	0.00%	38.70%	05/01/03
Oppenheimer VAF – Main Street® – Non-Service Shares
2007	0.00%	39,470		11.662711		460,327	1.00%	4.42%
2006	0.00%	40,880		11.168617		456,573	1.11%	15.02%
2005	0.00%	44,198		9.709756		429,152	1.25%	5.98%
2004	0.00%	28,322		9.162245		259,493	0.84%	9.46%
2003	0.00%	34,417		8.370485		288,087	0.90%	26.72%
Oppenheimer VAF – Mid Cap Fund – Non-Service Shares
2007	0.00%	13,234		7.183358		95,065	0.00%	6.33%
2006	0.00%	16,826		6.755577		113,669	0.00%	2.96%
2005	0.00%	17,266		6.561616		113,293	0.00%	12.33%
2004	0.00%	34,910		5.841557		203,929	0.00%	19.78%
2003	0.00%	27,076		4.877042		132,051	0.00%	25.59%
Putnam VT – Growth and Income Fund – IB Shares
2005	0.00%	1,222		14.527575		17,753	1.56%	5.23%
2004	0.00%	1,634		13.805820		22,559	1.66%	11.11%
Putnam VT – International Equity Fund – IB Shares
2007	0.00%	1,362		23.093467		31,453	2.65%	8.37%
2006	0.00%	232		21.310423		4,944	0.44%	27.72%
2005	0.00%	178		16.685441		2,970	1.11%	12.20%
Putnam VT – Voyager Fund – IB Shares
2007	0.00%	2,622		14.640393		38,387	0.00%	5.52%
2006	0.00%	2,660		13.874456		36,906	0.13%	5.44%
2005	0.00%	2,746		13.159164		36,135	0.60%	5.69%
2004	0.00%	2,224		12.450430		27,690	0.19%	5.03%
2003	0.00%	42		11.853879		498	0.00%	18.54%	05/01/03

(Continued)

71

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
T. Rowe Price Blue Chip Growth Portfolio – II
2007	0.00%	2,696	$	13.915435	$	37,516	0.12%	12.49%
2006	0.00%	3,280		12.370493		40,575	0.24%	9.33%
2005	0.00%	2,948		11.314946		33,356	0.29%	13.15%	05/02/05
T. Rowe Price Equity Income Portfolio – II
2007	0.00%	8,510		13.002714		110,653	1.53%	3.03%
2006	0.00%	8,360		12.620348		105,506	1.59%	18.65%
2005	0.00%	3,790		10.636871		40,314	1.20%	6.37%	05/02/05
T. Rowe Price Limited Term Bond Portfolio – Class II
2007	0.00%	3,446		11.086232		38,203	3.91%	5.23%
The Dreyfus Socially Responsible Growth Fund, Inc. – Initial Shares
2007	0.00%	29,132		19.305130		562,397	0.53%	7.79%
2006	0.00%	35,276		17.910706		631,818	0.11%	9.20%
2005	0.00%	40,512		16.401660		664,464	0.00%	3.62%
2004	0.00%	46,244		15.829359		732,013	0.38%	6.21%
2003	0.00%	50,706		14.903772		755,711	0.11%	26.00%
Turner GVIT Growth Focus Fund – Class I
2003	0.00%	35,452		3.336873		118,299	0.00%	50.96%
Van Eck Worldwide Insurance Trust – Bond Fund – Initial Class
2007	0.00%	12,120		19.230801		233,077	5.77%	9.71%
2006	0.00%	10,512		17.528628		184,261	8.51%	6.48%
2005	0.00%	12,460		16.461869		205,115	7.55%	-3.03%
2004	0.00%	14,838		16.976579		251,898	8.78%	9.15%
2003	0.00%	23,556		15.553340		366,374	1.75%	18.16%
Van Eck Worldwide Insurance Trust – Emerging Markets Fund – Initial Class
2007	0.00%	66,814		32.046703		2,141,168	0.43%	37.61%
2006	0.00%	71,040		23.287309		1,654,330	0.60%	39.49%
2005	0.00%	83,034		16.694466		1,386,208	0.73%	32.00%
2004	0.00%	83,090		12.647730		1,050,900	0.59%	25.89%
2003	0.00%	79,411		10.046593		797,810	0.11%	54.19%
Van Eck Worldwide Insurance Trust – Hard Assets Fund – Initial Class
2007	0.00%	38,468		39.522005		1,520,332	0.11%	45.36%
2006	0.00%	42,234		27.189640		1,148,327	0.07%	24.49%
2005	0.00%	54,640		21.840496		1,193,365	0.30%	51.67%
2004	0.00%	41,778		14.400064		601,606	0.37%	24.23%
2003	0.00%	43,115		11.615034		500,782	0.48%	45.08%
Van Kampen UIF – Core Plus Fixed Income Portfolio – Class I
2007	0.00%	1,932		12.175696		23,523	3.05%	5.45%
2006	0.00%	1,480		11.546094		17,088	3.94%	3.73%
2005	0.00%	1,144		11.130805		12,734	3.62%	4.21%
2004	0.00%	622		10.680729		6,643	4.78%	4.37%
2003	0.00%	49		10.233765		501	0.00%	2.34%	05/01/03
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I
2007	0.00%	11,312		22.844597		258,418	7.41%	6.53%
2006	0.00%	34,466		21.443912		739,086	7.72%	10.81%
2005	0.00%	37,616		19.352478		727,963	7.52%	12.25%
2004	0.00%	37,346		17.240440		643,861	6.41%	10.06%
2003	0.00%	41,844		15.664315		655,458	0.00%	27.86%
Van Kampen UIF – U.S. Real Estate Portfolio – Class I
2007	0.00%	38,256		49.750947		1,903,272	1.10%	-17.07%
2006	0.00%	45,458		59.991892		2,727,111	1.08%	38.04%
2005	0.00%	49,280		43.458397		2,141,630	1.22%	17.05%
2004	0.00%	57,878		37.127644		2,148,874	1.55%	36.39%
2003	0.00%	54,506		27.220749		1,483,694	0.00%	37.51%
Wells Fargo AVT – Discovery FundSM
2007	0.00%	14,270		29.066542		414,780	0.00%	22.32%
2006	0.00%	14,944		23.762009		355,099	0.00%	14.64%
2005	0.00%	16,270		20.726714		337,224	0.00%	8.27%
2004	0.00%	17,898		19.143146		342,624	0.00%	15.72%
2003	0.00%	18,929		16.542813		313,139	0.00%	39.43%

(Continued)

72

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Wells Fargo AVT – Opportunity FundSM
2007	0.00%	55,488	$	32.499052	$	1,803,307	0.61%	6.63%
2006	0.00%	63,616		30.477301		1,938,844	0.00%	12.22%
2005	0.00%	70,754		27.158853		1,921,597	0.00%	7.88%
2004	0.00%	85,426		25.174087		2,150,522	0.00%	18.22%
2003	0.00%	93,627		21.294252		1,993,717	0.07%	37.01%
Single Premium contracts issued prior to April 16, 1990 (policy years 11 and thereafter)
AIM VIF – Basic Value Fund – Series I
2007	0.50%	40,204		17.234687		692,903	0.50%	1.03%
2006	0.50%	55,976		17.058177		954,849	0.55%	12.64%
2005	0.50%	27,146		15.143837		411,095	0.09%	5.21%
2004	0.50%	2,482		14.393873		35,726	0.00%	10.52%
AIM VIF – Capital Appreciation Fund – Series I
2007	0.50%	17,866		16.730402		298,905	0.00%	11.45%
2006	0.50%	2,876		15.011307		43,173	0.04%	5.77%
2005	0.50%	288		14.192232		4,087	0.04%	8.29%
2004	0.50%	310		13.105225		4,063	0.00%	6.09%
2003	0.50%	1,364		12.965885		17,685	0.00%	29.66%	05/01/03
AIM VIF – Capital Development Fund – Series I
2007	0.50%	23,104		20.779892		480,099	0.00%	10.29%
2006	0.50%	11,446		18.841359		215,658	0.00%	15.94%
2005	0.50%	3,614		16.250893		58,731	0.00%	9.06%
2004	0.50%	4,050		14.900870		60,349	0.00%	14.92%
AllianceBernstein VPS – Growth and Income Portfolio – Class A
2007	0.50%	20,390		17.516124		357,154	1.55%	4.59%
2006	0.50%	15,978		16.747221		267,587	1.47%	16.70%
2005	0.50%	10,070		14.350279		144,507	1.68%	4.35%
2004	0.50%	9,008		13.752717		123,884	0.96%	10.91%
2003	0.50%	1,081		12.400313		13,405	0.00%	24.00%	05/01/03
AllianceBernstein VPS – Small/Mid Cap Value Portfolio – Class A
2007	0.50%	38,038		20.005857		760,983	1.06%	1.19%
2006	0.50%	36,812		19.769734		727,763	0.39%	13.85%
2005	0.50%	26,464		17.364568		459,536	0.72%	6.38%
2004	0.50%	2,172		16.322856		35,453	0.13%	18.71%
American Century VP – Balanced Fund – Class I
2007	0.50%	72,948		27.155398		1,980,932	2.12%	4.41%
2006	0.50%	58,648		26.008605		1,525,353	1.93%	9.07%
2005	0.50%	50,386		23.844923		1,201,450	1.83%	4.41%
2004	0.50%	28,138		22.837145		642,592	1.68%	9.23%
2003	0.50%	10,265		20.907285		214,613	2.53%	18.86%
American Century VP – Capital Appreciation Fund – Class I
2007	0.50%	191,634		58.930990		11,293,181	0.00%	45.07%
2006	0.50%	148,624		40.621668		6,037,355	0.00%	16.64%
2005	0.50%	104,698		34.827698		3,646,390	0.00%	21.46%
2004	0.50%	59,666		28.675107		1,710,929	0.00%	7.05%
2003	0.50%	31,820		26.787231		852,370	0.00%	19.87%
American Century VP – Income & Growth Fund – Class I
2007	0.50%	111,674		14.514258		1,620,865	1.88%	-0.57%
2006	0.50%	110,050		14.597227		1,606,425	1.88%	16.50%
2005	0.50%	83,992		12.529281		1,052,359	2.03%	4.11%
2004	0.50%	28,284		12.034610		340,387	1.44%	12.43%
2003	0.50%	14,230		10.704192		152,321	1.30%	28.71%
American Century VP – Inflation Protection Fund – Class II
2007	0.50%	44,004		12.055397		530,486	4.41%	8.94%
2006	0.50%	25,006		11.065707		276,709	3.22%	1.08%
2005	0.50%	24,828		10.947391		271,802	4.38%	1.06%
2004	0.50%	9,540		10.832965		103,346	3.57%	5.28%

(Continued)

73

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
American Century VP – International Fund – Class I
2007	0.50%	180,196	$	28.924155	$	5,212,017	0.72%	17.46%
2006	0.50%	181,244		24.623712		4,462,900	1.65%	24.40%
2005	0.50%	109,946		19.793391		2,176,204	1.27%	12.69%
2004	0.50%	59,792		17.564316		1,050,206	0.58%	14.35%
2003	0.50%	27,774		15.360020		426,609	0.75%	23.89%
American Century VP – International Fund – Class III
2007	0.50%	129,282		17.002494		2,198,116	0.60%	17.46%
2006	0.50%	52,054		14.474561		753,459	1.19%	24.40%
2005	0.50%	43,276		11.635157		503,523	0.00%	16.35%	05/02/05
American Century VP – Mid Cap Value Fund – Class I
2007	0.50%	69,408		13.130382		911,354	0.70%	-2.80%
2006	0.50%	28,362		13.507944		383,112	1.31%	19.70%
2005	0.50%	2,498		11.284751		28,189	1.06%	12.85%	05/02/05
American Century VP – Ultra® Fund – Class I
2007	0.50%	51,430		12.916798		664,311	0.00%	20.41%
2006	0.50%	21,516		10.727394		230,811	0.00%	-3.76%
2005	0.50%	20,298		11.146133		226,244	0.00%	1.66%
2004	0.50%	28,728		10.964413		314,986	0.00%	10.12%
2003	0.50%	2,408		9.956460		23,975	0.00%	24.28%
American Century VP – Value Fund – Class I
2007	0.50%	241,306		25.400814		6,129,369	1.65%	-5.61%
2006	0.50%	213,238		26.911603		5,738,576	1.39%	18.06%
2005	0.50%	121,762		22.794288		2,775,478	0.88%	4.51%
2004	0.50%	83,868		21.810391		1,829,194	1.01%	13.76%
2003	0.50%	31,176		19.171791		597,700	1.09%	28.32%
American Century VP – VistaSM Fund – Class I
2007	0.50%	80,738		17.235095		1,391,527	0.00%	39.07%
2006	0.50%	1,972		12.392995		24,439	0.00%	8.47%
2005	0.50%	242		11.425723		2,765	0.00%	14.26%	05/02/05
Credit Suisse Trust – Global Small Cap Portfolio
2007	0.50%	19,506		15.825884		308,700	0.00%	-4.44%
2006	0.50%	16,544		16.560881		273,983	0.00%	12.64%
2005	0.50%	12,544		14.702300		184,426	0.00%	15.57%
2004	0.50%	9,874		12.721972		125,617	0.00%	17.40%
2003	0.50%	6,096		10.836336		66,058	0.00%	46.92%
Credit Suisse Trust – International Focus Portfolio
2007	0.50%	215,496		19.806457		4,268,212	1.08%	16.01%
2006	0.50%	169,282		17.072863		2,890,128	1.03%	18.06%
2005	0.50%	62,308		14.460784		901,023	0.91%	16.85%
2004	0.50%	39,228		12.375012		485,447	0.99%	14.17%
2003	0.50%	14,533		10.839093		157,525	0.49%	32.43%
Credit Suisse Trust – Small Cap Core I Portfolio
2007	0.50%	277,018		19.080287		5,285,583	0.00%	-1.33%
2006	0.50%	219,292		19.337639		4,240,590	0.00%	4.25%
2005	0.50%	125,444		18.549847		2,326,967	0.00%	-3.16%
2004	0.50%	82,304		19.155888		1,576,606	0.00%	10.32%
2003	0.50%	27,210		17.364452		472,487	0.00%	47.81%
Dreyfus IP – Small Cap Stock Index Portfolio – Service Shares
2007	0.50%	47,664		15.270683		727,862	0.37%	-1.15%
2006	0.50%	46,836		15.448774		723,559	0.36%	13.84%
2005	0.50%	38,160		13.570376		517,846	0.00%	6.70%
2004	0.50%	32,364		12.718312		411,615	0.50%	21.28%
2003	0.50%	6,160		10.487006		64,600	0.33%	37.09%
Dreyfus Stock Index Fund, Inc. – Initial Shares
2007	0.50%	950,264		36.056885		34,263,560	1.70%	4.73%
2006	0.50%	710,704		34.429253		24,469,008	1.65%	14.92%
2005	0.50%	544,048		29.958454		16,298,837	1.60%	4.17%
2004	0.50%	347,660		28.759010		9,998,357	1.80%	10.09%
2003	0.50%	108,026		26.123506		2,822,018	1.51%	27.72%

(Continued)

74

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Dreyfus VIF – Appreciation Portfolio – Initial Shares
2007	0.50%	117,308	$	17.518498	$	2,055,060	1.61%	6.60%
2006	0.50%	100,824		16.434584		1,657,000	1.49%	15.90%
2005	0.50%	71,712		14.180252		1,016,894	0.02%	3.86%
2004	0.50%	39,366		13.653414		537,480	1.63%	4.52%
2003	0.50%	15,431		13.062720		201,571	1.40%	20.57%
Dreyfus VIF – Developing Leaders Portfolio – Initial Shares
2007	0.50%	9,412		13.702540		128,968	0.83%	-11.51%
2006	0.50%	9,442		15.484023		146,200	0.43%	3.25%
2005	0.50%	6,920		14.996047		103,773	0.00%	5.27%
2004	0.50%	4,108		14.244729		58,517	0.22%	10.79%
2003	0.50%	840		12.857964		10,801	0.08%	28.58%	05/01/03
Dreyfus VIF – Growth and Income Portfolio – Initial Shares
2007	0.50%	42,986		16.865204		724,968	0.76%	7.90%
2006	0.50%	10,806		15.630140		168,899	0.77%	13.94%
2005	0.50%	11,612		13.717541		159,288	1.34%	2.84%
2004	0.50%	10,312		13.338990		137,552	1.23%	6.93%
2003	0.50%	6,368		12.474297		79,436	0.84%	25.94%
Federated IS – American Leaders Fund II – Primary Shares
2007	0.50%	7,374		14.973799		110,417	1.55%	-10.12%
2006	0.50%	10,000		16.659331		166,593	1.47%	16.23%
2005	0.50%	6,978		14.333441		100,019	1.33%	4.50%
2004	0.50%	2,628		13.716228		36,046	0.41%	9.23%
Federated IS – Capital Appreciation Fund II – Primary Shares
2007	0.50%	254		16.457068		4,180	0.71%	9.33%
2005	0.50%	1,354		13.017510		17,626	1.07%	1.41%
2004	0.50%	1,276		12.836844		16,380	0.28%	6.86%
Federated IS – Market Opportunity Fund II – Service Shares
2007	0.50%	246		10.155871		2,498	0.57%	-1.98%
Federated IS – Quality Bond Fund II – Primary Shares
2007	0.50%	26,966		12.636630		340,759	4.97%	4.86%
2006	0.50%	24,568		12.051517		296,082	3.43%	3.64%
2005	0.50%	16,246		11.628696		188,920	3.65%	0.79%
2004	0.50%	9,180		11.537144		105,911	4.98%	3.10%
2003	0.50%	4,444		11.189906		49,728	3.93%	4.12%
Fidelity® VIP – Equity-Income Portfolio – Initial Class
2007	0.50%	592,452		68.682638		40,691,166	1.77%	1.02%
2006	0.50%	491,100		67.988158		33,388,984	3.30%	19.60%
2005	0.50%	344,836		56.848284		19,603,335	1.64%	5.34%
2004	0.50%	187,988		53.967094		10,145,166	1.56%	10.97%
2003	0.50%	86,371		48.630667		4,200,279	1.80%	29.68%
Fidelity® VIP – Growth Portfolio – Initial Class
2007	0.50%	622,446		77.381327		48,165,697	0.82%	26.33%
2006	0.50%	528,784		61.254324		32,390,306	0.40%	6.32%
2005	0.50%	390,486		57.613946		22,497,439	0.51%	5.27%
2004	0.50%	263,644		54.728412		14,428,817	0.27%	2.86%
2003	0.50%	105,480		53.205281		5,612,093	0.27%	32.19%
Fidelity® VIP – High Income Portfolio – Initial Class
2007	0.50%	247,158		32.546729		8,044,184	7.41%	2.27%
2006	0.50%	261,306		31.824106		8,315,830	7.80%	10.68%
2005	0.50%	175,964		28.752380		5,059,384	16.14%	2.19%
2004	0.50%	140,176		28.136168		3,944,015	8.82%	9.05%
2003	0.50%	55,652		25.802029		1,435,935	5.94%	26.63%
Fidelity® VIP – High Income Portfolio – Initial Class R
2007	0.50%	122,470		9.857586		1,207,259	11.21%	-1.42%	05/01/07
Fidelity® VIP – Overseas Portfolio – Initial Class
2007	0.50%	220,112		45.333254		9,978,393	3.29%	16.72%
2006	0.50%	218,334		38.837994		8,479,655	0.91%	17.49%
2005	0.50%	187,952		33.055758		6,212,896	0.71%	18.45%
2004	0.50%	160,928		27.905999		4,490,857	1.14%	13.07%
2003	0.50%	58,985		24.680530		1,455,781	0.83%	42.65%

(Continued)

75

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit     Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Fidelity® VIP – Overseas Portfolio – Service Class R
2007	0.50%	238,614	$	17.054609	$	4,069,468	3.21%	16.64%
2006	0.50%	201,906		14.621895		2,952,248	0.77%	17.36%
2005	0.50%	108,508		12.458682		1,351,867	0.00%	24.59%	05/02/05
Fidelity® VIP II – Asset Manager Portfolio – Initial Class
2007	0.50%	306,478		40.213337		12,324,503	6.08%	14.92%
2006	0.50%	286,878		34.991020		10,038,154	2.71%	6.78%
2005	0.50%	288,746		32.768260		9,461,704	2.76%	3.53%
2004	0.50%	209,976		31.651957		6,646,151	2.76%	4.94%
2003	0.50%	84,282		30.161112		2,542,039	3.62%	17.39%
Fidelity® VIP II – Contrafund® Portfolio – Initial Class
2007	0.50%	1,000,686		42.579734		42,608,944	0.93%	17.00%
2006	0.50%	755,746		36.392149		27,503,221	1.27%	11.16%
2005	0.50%	418,680		32.738236		13,706,845	0.29%	16.36%
2004	0.50%	222,346		28.136431		6,256,023	0.34%	14.90%
2003	0.50%	101,752		24.487594		2,491,662	0.46%	27.82%
Fidelity® VIP II – Investment Grade Bond Portfolio – Service Class
2007	0.50%	239,992		11.553678		2,772,790	4.06%	3.69%
2006	0.50%	224,730		11.142647		2,504,087	3.27%	3.78%
2005	0.50%	47,416		10.736671		509,090	1.67%	1.57%
2004	0.50%	14,444		10.570462		152,680	1.88%	3.80%
2003	0.50%	9,748		10.183621		99,270	0.00%	1.84%	05/01/03
Fidelity® VIP III – Growth Opportunities Portfolio – Initial Class
2007	0.50%	94,062		14.770825		1,389,373	0.00%	22.57%
2006	0.50%	47,778		12.051402		575,792	0.69%	4.93%
2005	0.50%	36,764		11.485107		422,238	0.95%	8.35%
2004	0.50%	38,174		10.600065		404,647	0.53%	6.66%
2003	0.50%	20,500		9.938499		203,739	0.74%	29.23%
Fidelity® VIP III – Mid Cap Portfolio – Service Class
2007	0.50%	272,886		26.388591		7,201,077	0.70%	14.91%
2006	0.50%	217,404		22.965001		4,992,683	0.25%	12.03%
2005	0.50%	105,862		20.498936		2,170,058	0.00%	17.62%
2004	0.50%	28,738		17.428707		500,866	0.00%	24.15%
2003	0.50%	2,295		14.038431		32,218	0.00%	40.38%	05/01/03
Fidelity® VIP III – Value Strategies Portfolio – Service Class
2007	0.50%	40,724		16.521474		672,821	0.83%	5.07%
2006	0.50%	50,330		15.724226		791,400	0.41%	15.62%
2005	0.50%	16,310		13.600017		221,816	0.00%	2.04%
2004	0.50%	22,246		13.327560		296,485	0.00%	13.42%
2003	0.50%	15,781		11.750739		185,438	0.00%	57.00%
Fidelity® VIP IV – Energy Portfolio – Service Class 2
2007	0.50%	214,326		22.649325		4,854,339	0.12%	44.91%
2006	0.50%	115,990		15.629664		1,812,885	0.73%	16.04%
2005	0.50%	42,914		13.469693		578,038	0.65%	34.70%	05/02/05
Fidelity® VIP IV – Freedom Fund 2010 Portfolio – Service Class
2007	0.50%	71,358		12.718211		907,546	5.88%	8.10%
2006	0.50%	1,822		11.765134		21,436	3.42%	9.24%
2005	0.50%	1,590		10.770315		17,125	0.56%	7.70%	05/02/05
Fidelity® VIP IV – Freedom Fund 2020 Portfolio – Service Class
2007	0.50%	38,608		13.514322		521,761	2.17%	9.61%
2006	0.50%	6,200		12.328971		76,440	1.69%	11.25%
2005	0.50%	3,540		11.081899		39,230	0.86%	10.82%	05/02/05
Fidelity® VIP IV – Freedom Fund 2030 Portfolio – Service Class
2007	0.50%	35,470		14.068082		498,995	2.76%	10.65%
2006	0.50%	17,674		12.713976		224,707	5.31%	12.59%
Franklin Templeton VIP – Developing Markets Securities Fund – Class 3
2007	0.50%	102,474		20.840783		2,135,638	2.20%	28.05%
2006	0.50%	47,562		16.275260		774,084	1.19%	27.53%
2005	0.50%	17,310		12.761961		220,910	0.53%	27.62%	05/02/05

(Continued)

76

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit     Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Franklin Templeton VIP – Foreign Securities Fund – Class 1
2007	0.50%	21,480	$	23.988549	$	515,274	2.23%	15.21%
2006	0.50%	26,826		20.821962		558,570	1.41%	21.09%
2005	0.50%	26,236		17.195159		451,132	1.37%	9.93%
2004	0.50%	10,062		15.642411		157,394	1.10%	18.28%
2003	0.50%	2,090		13.224912		27,640	0.79%	32.25%	05/01/03
Franklin Templeton VIP – Foreign Securities Fund – Class 3
2007	0.50%	118,810		15.619506		1,855,754	2.03%	14.87%2
2006	0.50%	54,682		13.597883		743,559	1.38%	20.86%
2005	0.50%	21,078		11.251218		237,153	0.39%	12.51%	05/02/05
Franklin Templeton VIP – Global Income Securities Fund – Class 3
2007	0.50%	120,218		12.216405		1,468,632	2.64%	10.48%
2006	0.50%	14,172		11.057995		156,714	2.45%	12.28%
2005	0.50%	2,394		9.848458		23,577	7.95%	-1.52%	05/02/05
Franklin Templeton VIP – Income Securities Fund – Class 2
2007	0.50%	81,232		11.541005		937,499	3.26%	3.24%
2006	0.50%	8,720		11.179202		97,483	0.00%	11.79%	05/01/06
Franklin Templeton VIP – Rising Dividends Securities Fund – Class 1
2007	0.50%	167,510		15.891491		2,661,984	2.53%	-2.90%
2006	0.50%	137,920		16.366662		2,257,290	1.22%	16.84%
2005	0.50%	76,976		14.007257		1,078,223	1.09%	3.17%
2004	0.50%	45,226		13.577316		614,048	0.66%	10.70%
2003	0.50%	11,618		12.265513		142,501	0.20%	22.66%	05/01/03
Franklin Templeton VIP – Small Cap Value Securities Fund – Class 1
2007	0.50%	109,944		20.259847		2,227,449	0.88%	-2.63%
2006	0.50%	98,784		20.806303		2,055,330	0.82%	16.72%
2005	0.50%	47,146		17.825857		840,418	0.91%	8.45%
2004	0.50%	20,500		16.437638		336,972	0.19%	23.47%
2003	0.50%	2,305		13.312843		30,686	0.12%	33.13%	05/01/03
Gartmore GVIT – Small Cap Growth Fund: Class I – Intial Funding by Depositor
2006	0.50%	68,500		7.935212		543,562	0.00%	2.69%
2005	0.50%	36,714		7.727049		283,691	0.00%	7.55%
2004	0.50%	32,220		7.184440		231,483	0.00%	12.85%
2003	0.50%	10,334		6.366359		65,790	0.00%	33.60%
Janus Aspen Series – Balanced Portfolio – Service Shares
2007	0.50%	13,348		15.299488		204,218	1.92%	9.73%
2006	0.50%	9,396		13.942298		131,002	1.96%	9.87%
2005	0.50%	1,282		12.690331		16,269	2.56%	7.13%
2004	0.50%	730		11.846263		8,648	3.27%	7.75%
Janus Aspen Series – Forty Portfolio – Service Shares
2007	0.50%	198,870		11.942871		2,375,079	0.19%	35.95%
2006	0.50%	81,402		8.784776		715,098	0.14%	8.57%
2005	0.50%	44,888		8.091082		363,192	0.01%	12.00%
2004	0.50%	23,622		7.224414		170,655	0.02%	17.38%
2003	0.50%	7,149		6.154757		44,000	0.25%	19.63%
Janus Aspen Series – Global Technology Portfolio – Service Shares
2007	0.50%	126,802		5.208409		660,437	0.37%	21.09%
2006	0.50%	75,318		4.301344		323,969	0.00%	7.29%
2005	0.50%	36,250		4.009018		145,327	0.00%	10.99%
2004	0.50%	16,918		3.611898		61,106	0.00%	0.06%
2003	0.50%	8,256		3.609555		29,800	0.00%	45.74%
Janus Aspen Series – INTECH Risk-Managed Core Portfolio – Service Shares
2007	0.50%	5,388		18.407712		99,181	0.36%	5.60%
2006	0.50%	5,540		17.431528		96,571	0.10%	10.22%
2005	0.50%	3,292		15.815517		52,065	1.43%	10.36%
2004	0.50%	2,006		14.330811		28,748	2.29%	16.88%
Janus Aspen Series – International Growth Portfolio – Service II Shares
2007	0.50%	326,560		14.770042		4,823,305	0.50%	27.43%
2006	0.50%	121,018		11.590627		1,402,674	1.97%	15.91%	05/01/06

(Continued)

77

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit     Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Janus Aspen Series – International Growth Portfolio – Service Shares
2007	0.50%	103,560	$	17.203858	$	1,781,632	0.43%	27.38%
2006	0.50%	107,512		13.506291		1,452,088	1.92%	45.90%
2005	0.50%	62,034		9.257232		574,263	1.14%	31.28%
2004	0.50%	11,248		7.051335		79,313	0.83%	18.09%
2003	0.50%	7,242		5.970919		43,241	0.99%	33.86%
Lehman Brothers AMT – Short Duration Bond Portfolio – I Class
2007	0.50%	68,620		24.470719		1,679,181	2.65%	4.25%
2006	0.50%	55,674		23.474013		1,306,892	3.06%	3.68%
2005	0.50%	38,328		22.640077		867,749	2.61%	0.94%
2004	0.50%	37,986		22.429536		852,008	3.64%	0.28%
2003	0.50%	20,267		22.367675		453,326	4.41%	1.91%
MFS VIT – Investors Growth Stock Series – Initial Class
2007	0.50%	10,876		15.485007		168,415	0.34%	10.80%
2006	0.50%	9,652		13.975658		134,893	0.00%	7.04%
2005	0.50%	9,568		13.056404		124,924	0.38%	3.97%
2004	0.50%	4,150		12.557998		52,116	0.00%	8.64%
2003	0.50%	1,131		11.559230		13,073	0.00%	15.59%	05/01/03
MFS VIT – Value Series – Initial Class
2007	0.50%	49,510		19.355242		958,278	0.91%	7.37%
2006	0.50%	22,532		18.027234		406,190	0.80%	20.24%
2005	0.50%	8,422		14.992740		126,269	0.65%	6.13%
2004	0.50%	1,594		14.126859		22,518	0.34%	14.60%
Nationwide VIT – American Funds Asset Allocation Fund – Class II
2007	0.50%	52,982		11.112234		588,748	2.56%	5.61%
2006	0.50%	2,762		10.522054		29,062	3.56%	5.22%	05/01/06
Nationwide VIT – American Funds Bond Fund – Class II
2007	0.50%	70,206		10.762995		755,627	8.87%	2.47%
2006	0.50%	22,766		10.504005		239,134	0.05%	5.04%	05/01/06
Nationwide VIT – American Funds Global Growth Fund – Class II
2007	0.50%	88,882		12.296498		1,092,937	2.69%	13.79%
2006	0.50%	64,864		10.806217		700,934	0.07%	8.06%	05/01/06
Nationwide VIT – American Funds Growth – Income Fund – Class II
2007	0.50%	34,752		9.859308		342,631	3.27%	-1.41%	05/01/07
Nationwide VIT – American Funds Growth Fund – Class II
2007	0.50%	107,408		11.501279		1,235,329	0.68%	11.34%
2006	0.50%	44,756		10.330117		462,335	1.29%	3.30%	05/01/06
Nationwide VIT – Federated High Income Bond Fund – Class I
2007	0.50%	5,162		13.966626		72,096	7.20%	2.62%
2006	0.50%	4,224		13.610399		57,490	7.10%	10.05%
2005	0.50%	4,370		12.367140		54,044	6.81%	1.87%
2004	0.50%	25,084		12.139983		304,519	8.50%	9.55%
Nationwide VIT – Federated High Income Bond Fund – Class III
2007	0.50%	35,436		11.868017		420,555	8.02%	2.65%
2006	0.50%	13,398		11.561576		154,902	7.03%	10.05%
2005	0.50%	4,790		10.505908		50,323	6.33%	5.06%	05/02/05
Nationwide VIT – Gartmore Emerging Markets Fund – Class I
2007	0.50%	37,816		35.576728		1,345,370	0.71%	44.85%
2006	0.50%	36,644		24.561198		900,021	0.72%	36.04%
2005	0.50%	39,142		18.054599		706,693	0.61%	31.98%
2004	0.50%	26,586		13.680089		363,699	0.93%	20.14%
2003	0.50%	17,288		11.386650		196,852	0.66%	64.44%
Nationwide VIT – Gartmore Emerging Markets Fund – Class III
2007	0.50%	196,328		26.174039		5,138,697	0.74%	44.82%
2006	0.50%	59,452		18.073662		1,074,515	0.78%	35.97%
2005	0.50%	42,298		13.292850		562,261	0.19%	32.93%	05/02/05
Nationwide VIT – Gartmore Global Utilities Fund – Class I
2007	0.50%	44,614		23.987048		1,070,158	2.36%	19.83%
2006	0.50%	31,924		20.017433		639,037	2.82%	36.88%
2005	0.50%	18,728		14.624338		273,885	2.16%	5.86%
2004	0.50%	10,822		13.814954		149,505	1.92%	29.32%

(Continued)

78

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit     Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Nationwide VIT – Gartmore International Growth Fund – Class I
2007	0.50%	64,516	$	16.468629	$	1,062,490	0.38%	26.51%
2006	0.50%	25,884		13.017827		336,953	0.78%	32.30%
2005	0.50%	4,962		9.839331		48,823	1.03%	29.56%
2004	0.50%	1,290		7.594318		9,797	1.40%	13.62%
Nationwide VIT – Global Financial Services Fund – Class I
2007	0.50%	20,752		19.073551		395,814	3.13%	-1.55%
2006	0.50%	19,458		19.373628		376,972	1.89%	19.72%
2005	0.50%	7,780		16.182094		125,897	2.00%	10.60%
2004	0.50%	3,124		14.631389		45,708	1.45%	20.39%
2003	0.50%	629		12.153349		7,644	0.88%	40.75%
Nationwide VIT – Global Health Sciences Fund – Class I
2007	0.50%	7,226		15.064598		108,857	0.08%	12.59%
2006	0.50%	7,120		13.379661		95,263	0.00%	2.20%
2005	0.50%	7,318		13.092046		95,808	0.00%	7.90%
2004	0.50%	10,306		12.133480		125,048	0.00%	7.32%
2003	0.50%	3,699		11.305727		41,820	0.00%	36.01%
Nationwide VIT – Global Health Sciences Fund – Class III
2007	0.50%	38,088		12.326279		469,483	0.09%	12.66%
2006	0.50%	19,322		10.941189		211,406	0.00%	2.19%
2005	0.50%	20,616		10.706525		220,726	0.00%	7.07%	05/02/05
Nationwide VIT – Global Technology and Communications Fund – Class I
2007	0.50%	53,296		4.090476		218,006	0.00%	19.49%
2006	0.50%	55,710		3.423239		190,709	0.00%	10.62%
2005	0.50%	33,760		3.094710		104,477	0.00%	-1.01%
2004	0.50%	29,620		3.126331		92,602	0.00%	3.79%
2003	0.50%	44,144		3.012098		132,966	0.00%	54.46%
Nationwide VIT – Global Technology and Communications Fund – Class III
2007	0.50%	37,420		16.226798		607,207	0.00%	19.58%
2006	0.50%	12,314		13.569468		167,094	0.00%	10.53%
2005	0.50%	18,758		12.276743		230,287	0.00%	22.77%	05/02/05
Nationwide VIT – Government Bond Fund – Class I
2007	0.50%	132,504		35.151974		4,657,777	4.45%	6.62%
2006	0.50%	106,356		32.969134		3,506,465	4.11%	2.83%
2005	0.50%	64,816		32.062663		2,078,174	3.64%	2.75%
2004	0.50%	43,088		31.204592		1,344,543	5.48%	2.75%
2003	0.50%	20,794		30.370279		631,520	3.14%	1.49%
Nationwide VIT – Growth Fund – Class I
2007	0.50%	262,256		22.910775		6,008,488	0.17%	18.94%
2006	0.50%	165,708		19.261676		3,191,814	0.05%	5.64%
2005	0.50%	111,080		18.233340		2,025,359	0.08%	5.97%
2004	0.50%	72,558		17.206018		1,248,434	0.33%	7.62%
2003	0.50%	13,689		15.988156		218,862	0.02%	32.08%
Nationwide VIT – International Index Fund – Class VI
2007	0.50%	31,716		11.917827		377,986	1.82%	8.95%
2006	0.50%	530		10.938962		5,798	1.38%	9.39%	05/01/06
Nationwide VIT – International Value Fund – Class I
2007	0.50%	22,414		23.187675		519,729	2.06%	2.40%
2006	0.50%	22,408		22.644248		507,412	2.08%	22.06%
2005	0.50%	24,690		18.551760		458,043	1.34%	11.54%
2004	0.50%	15,934		16.633064		265,031	2.03%	19.69%
2003	0.50%	4,952		13.791985		68,298	0.00%	37.92%	05/01/03
Nationwide VIT – International Value Fund – Class III
2007	0.50%	111,682		14.277421		1,594,531	2.12%	2.42%
2006	0.50%	98,312		13.940694		1,370,538	2.01%	22.14%
2005	0.50%	44,904		11.414099		512,539	0.95%	14.14%	05/02/05
Nationwide VIT – Investor Destinations Aggressive Fund – Class II
2007	0.50%	199,734		16.254455		3,246,567	2.03%	5.43%
2006	0.50%	95,776		15.417742		1,476,650	2.11%	16.29%
2005	0.50%	59,996		13.258370		795,449	1.95%	7.39%
2004	0.50%	49,550		12.345496		611,719	1.75%	13.46%

(Continued)

79

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit     Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Nationwide VIT – Investor Destinations Conservative Fund – Class II
2007	0.50%	41,486	$	12.734093	$	528,287	3.97%	4.85%
2006	0.50%	7,634		12.144751		92,713	2.89%	5.64%
2005	0.50%	8,068		11.496816		92,756	2.78%	2.79%
2004	0.50%	2,158		11.184449		24,136	2.46%	4.13%
2003	0.50%	1,037		10.740821		11,138	2.37%	7.37%
Nationwide VIT – Investor Destinations Moderate Fund – Class II
2007	0.50%	214,672		14.461679		3,104,518	2.62%	5.13%
2006	0.50%	199,278		13.756055		2,741,279	2.50%	10.80%
2005	0.50%	129,056		12.415323		1,602,272	2.36%	4.82%
2004	0.50%	85,142		11.844428		1,008,103	2.27%	8.99%
2003	0.50%	16,518		10.867503		179,509	2.06%	19.45%
Nationwide VIT – Investor Destinations Moderately Aggressive Fund – Class II
2007	0.50%	210,008		15.586169		3,273,220	2.25%	5.62%
2006	0.50%	152,382		14.757103		2,248,717	2.27%	13.97%
2005	0.50%	81,078		12.948162		1,049,811	2.14%	6.54%
2004	0.50%	41,042		12.153407		498,800	1.97%	11.53%
Nationwide VIT – Investor Destinations Moderately Conservative Fund – Class II
2007	0.50%	22,454		13.677144		307,107	2.92%	5.33%
2006	0.50%	18,590		12.985235		241,396	2.76%	7.88%
2005	0.50%	18,510		12.036367		222,793	2.75%	3.97%
2004	0.50%	9,360		11.577210		108,363	2.48%	6.62%
Nationwide VIT – Mid Cap Growth Fund – Class I
2007	0.50%	83,188		7.317914		608,763	0.00%	8.47%
2006	0.50%	92,144		6.746610		621,660	0.00%	9.36%
2005	0.50%	72,740		6.169108		448,741	0.00%	9.20%
2004	0.50%	87,438		5.649583		493,988	0.00%	14.76%
2003	0.50%	74,157		4.922829		365,062	0.00%	39.44%
Nationwide VIT – Mid Cap Index Fund – Class I
2007	0.50%	221,386		17.469317		3,867,462	1.35%	7.02%
2006	0.50%	202,754		16.323372		3,309,629	1.13%	9.34%
2005	0.50%	137,224		14.928625		2,048,566	1.03%	11.54%
2004	0.50%	57,928		13.383987		775,308	0.54%	15.15%
2003	0.50%	19,389		11.622612		225,351	0.49%	33.98%
Nationwide VIT – Money Market Fund – Class I
2007	0.50%	847,514		20.635458		17,488,840	4.64%	4.27%
2006	0.50%	485,516		19.791189		9,608,939	4.49%	4.01%
2005	0.50%	305,794		19,028333		5,818,750	2.64%	2.16%
2004	0.50%	162,122		18.626719		3,019,801	0.78%	0.31%
2003	0.50%	103,301		18.569650		1,918,271	0.63%	0.12%
Nationwide VIT – Multi-Manager Small Cap Growth Fund – Class I
2007	0.50%	126,230		8.665238		1,093,813	0.00%	9.20%
Nationwide VIT – Multi-Manager Small Cap Value Fund – Class I
2007	0.50%	195,390		22.549722		4,405,990	1.10%	-7.36%
2006	0.50%	176,848		24.341439		4,304,735	0.43%	16.71%
2005	0.50%	164,618		20.856322		3,433,326	0.06%	2.56%
2004	0.50%	100,222		20.335711		2,038,086	0.00%	16.71%
2003	0.50%	31,504		17.423619		548,914	0.00%	56.07%
Nationwide VIT – Multi-Manager Small Company Fund – Class I
2007	0.50%	385,134		40.445411		15,576,903	0.09%	1.62%
2006	0.50%	319,750		39.800578		12,726,235	0.11%	11.48%
2005	0.50%	159,914		35.701630		5,709,190	0.00%	11.76%
2004	0.50%	94,992		31.945431		3,034,560	0.00%	18.43%
2003	0.50%	45,264		26.974404		1,220,969	0.00%	40.31%
Nationwide VIT – Nationwide Fund – Class I
2007	0.50%	592,642		54.197488		32,119,708	1.05%	7.64%
2006	0.50%	467,698		50.351226		23,549,168	1.08%	13.06%
2005	0.50%	297,534		44.533940		13,250,361	0.91%	6.91%
2004	0.50%	167,838		41.656679		6,991,574	1.28%	9.20%
2003	0.50%	19,074		38.145818		727,593	0.56%	26.88%

(Continued)

80

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Nationwide VIT – Nationwide Leaders Fund – Class I
2007	0.50%	28,472	$	17.477126	$	497,609	1.15%	11.00	%
2006	0.50%	15,828		15.745056		249,213	0.97%	15.47	%
2005	0.50%	9,478		13.635788		129,240	1.54%	9.76	%
2004	0.50%	2,600		12.422944		32,300	0.52%	18.20	%
2003	0.50%	588		10.510022		6,180	0.19%	24.76	%
Nationwide VIT – U.S.Growth Leaders Fund – Class I
2007	0.50%	28,912		18.699798		540,649	0.00%	21.87	%
2006	0.50%	18,158		15.343823		278,613	0.25%	-0.78	%
2005	0.50%	14,474		15.465102		223,842	0.00%	11.41	%
2004	0.50%	21,016		13.881788		291,740	0.00%	11.85	%
2003	0.50%	8,655		12.411260		107,419	0.00%	51.38	%
Nationwide VIT – Van Kampen Comstock Value Fund – Class I
2007	0.50%	36,330		17.186389		624,382	1.71%	-2.71	%
2006	0.50%	28,342		17.664583		500,650	1.74%	15.33	%
2005	0.50%	15,396		15.316704		235,816	1.69%	3.73	%
2004	0.50%	7,480		14.766163		110,451	1.56%	16.91	%
2003	0.50%	570		12.630064		7,199	1.52%	26.30	%   05/01/03
Nationwide VIT – Van Kampen Multi Sector Bond Fund – Class I
2007	0.50%	61,778		15.099593		932,823	4.10%	4.10	%
2006	0.50%	39,090		14.504882		566,996	4.42%	4.32	%
2005	0.50%	11,354		13.904678		157,874	3.89%	1.67	%
2004	0.50%	9,006		13.676033		123,166	4.85%	6.00	%
2003	0.50%	2,912		12.901625		37,570	5.47%	11.56	%
Neuberger Berman AMT – Balanced Portfolio – I Class Shares
2007	0.50%	14,752		14.559590		214,783	0.81%	15.02	%
2006	0.50%	1,380		12.657889		17,468	0.77%	10.12	%
2005	0.50%	1,038		11.494958		11,932	1.03%	8.64	%
2004	0.50%	408		10.580939		4,317	1.30%	8.76	%
2003	0.50%	387		9.728263		3,765	1.91%	15.70	%
Neuberger Berman AMT – Fasciano Portfolio – S Class Shares
2007	0.50%	5,616		15.000871		84,245	0.00%	0.01	%
2006	0.50%	3,464		14.999207		51,957	0.00%	4.73	%
2005	0.50%	5,906		14.321953		84,585	0.00%	2.39	%
2004	0.50%	4,114		13.988281		57,548	0.00%	11.32	%
Neuberger Berman AMT – Growth Portfolio- Class I
2007	0.50%	180,172		54.020381		9,732,960	0.00%	22.08	%
2006	0.50%	157,596		44.249809		6,973,593	0.00%	13.50	%
2005	0.50%	111,124		38.986368		4,332,321	0.00%	12.93	%
2004	0.50%	72,940		34.521424		2,517,993	0.00%	16.02	%
2003	0.50%	24,292		29.754395		722,794	0.00%	30.75	%
Neuberger Berman AMT – Guardian Portfolio – I Class Shares
2007	0.50%	58,036		15.129140		878,035	0.26%	6.85	%
2006	0.50%	44,048		14.159327		623,690	0.67%	12.81	%
2005	0.50%	42,392		12.551167		532,069	0.14%	7.85	%
2004	0.50%	32,314		11.637402		376,051	0.12%	15.24	%
2003	0.50%	12,247		10.098680		123,679	0.84%	31.10	%
Neuberger Berman AMT – International Portfolio – Class S
2007	0.50%	17,036		14.774055		251,691	1.68%	2.70	%
2006	0.50%	8,138		14.386244		117,075	0.00%	22.84	%
2005	0.50%	490		11.711411		5,739	0.22%	17.11	%   05/02/05
Neuberger Berman AMT – Mid-Cap Growth Portfolio – Class S
2007	0.50%	31,008		22.162337		687,210	0.00%	21.59	%
2006	0.50%	17,228		18.227772		314,028	0.00%	13.90	%
2005	0.50%	5,284		16.003177		84,561	0.00%	12.86	%
2004	0.50%	2,568		14.179701		36,413	0.00%	15.46	%
2003	0.50%	1,669		12.281545		20,498	0.00%	22.82	%   05/01/03

(Continued)

81

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Neuberger Berman AMT – Partners Portfolio- Class I
2007	0.50%	325,884	$	41.589921	$	13,553,490	0.64%	8.79	%
2006	0.50%	241,712		38.230288		9,240,719	0.71%	11.68	%
2005	0.50%	163,828		34.231207		5,608,030	1.02%	17.46	%
2004	0.50%	72,448		29.143256		2,111,371	0.01%	18.38	%
2003	0.50%	15,209		24.617984		374,415	0.00%	34.41	%
Neuberger Berman AMT – Regency Portfolio – Class S
2007	0.50%	13,016		13.155851		171,237	0.66%	2.54	%
2006	0.50%	5,576		12.830334		71,542	0.44%	10.38	%
2005	0.50%	2,318		11.623425		26,943	0.00%	16.23	%   05/02/05
Neuberger Berman AMT – Socially Responsive Portfolio Class I
2007	0.50%	17,622		17.905737		315,535	0.09%	7.07	%
2006	0.50%	14,184		16.722808		237,196	0.17%	13.14	%
2005	0.50%	2,512		14.781029		37,130	0.00%	6.33	%
2004	0.50%	98		13.901675		1,362	0.00%	12.71	%
Oppenheimer VAF – Balanced Fund – Non-Service Shares
2007	0.50%	155,028		40.315421		6,250,019	2.57%	3.27	%
2006	0.50%	124,154		39.040157		4,846,992	2.13%	10.59	%
2005	0.50%	102,966		35.300804		3,634,783	1.76%	3.37	%
2004	0.50%	54,126		34.149236		1,848,362	1.01%	9.55	%
2003	0.50%	23,053		31.171669		718,600	2.82%	24.33	%
Oppenheimer VAF – Capital Appreciation Fund – Non-Service Shares
2007	0.50%	221,522		20.172546		4,468,663	0.23%	13.58	%
2006	0.50%	195,220		17.761150		3,467,332	0.38%	7.41	%
2005	0.50%	154,400		16.535627		2,553,101	0.93%	4.58	%
2004	0.50%	104,114		15.812092		1,646,260	0.33%	6.40	%
2003	0.50%	43,463		14.860580		645,885	0.38%	30.29	%
Oppenheimer VAF – Core Bond Fund – Non-Service Shares
2007	0.50%	210,962		29.144443		6,148,370	5.26%	3.87	%
2006	0.50%	192,508		28.059142		5,401,609	5.20%	4.76	%
2005	0.50%	85,328		26.785454		2,285,549	5.34%	2.08	%
2004	0.50%	73,062		26.240474		1,917,182	4.80%	4.97	%
2003	0.50%	32,391		24.998938		809,741	5.67%	6.25	%
Oppenheimer VAF – Global Securities Fund – Class 3
2007	0.50%	337,926		14.892546		5,032,578	1.25%	5.80	%
2006	0.50%	200,308		14.075542		2,819,444	0.80%	17.10	%
2005	0.50%	63,366		12.019802		761,647	0.00%	20.20	%   05/02/05
Oppenheimer VAF – Global Securities Fund – Non-Service Shares
2007	0.50%	400,936		49.082767		19,679,048	1.37%	5.79	%
2006	0.50%	342,600		46.398150		15,896,006	1.04%	17.11	%
2005	0.50%	262,628		39.620511		10,405,456	1.07%	13.74	%
2004	0.50%	191,944		34.834576		6,686,288	1.25%	18.57	%
2003	0.50%	33,503		29.379176		984,291	0.76%	42.31	%
Oppenheimer VAF – High Income Fund – Class 3
2007	0.50%	7,982		9.628770		76,857	0.00%	-3.71	%   05/01/07
Oppenheimer VAF – High Income Fund – Non-Service Shares
2007	0.50%	17,012		13.312822		226,478	6.11%	-0.60	%
2006	0.50%	22,010		13.393515		294,791	6.97%	8.88	%
2005	0.50%	17,466		12.301306		214,855	6.75%	1.80	%
2004	0.50%	14,518		12.083237		175,424	4.23%	8.42	%
2003	0.50%	8,543		11.144531		95,208	0.00%	11.45	%   05/01/03
Oppenheimer VAF – Main Street Small Cap Fund® – Non-Service Shares
2007	0.50%	38,846		20.206983		784,960	0.32%	-1.71	%
2006	0.50%	28,656		20.557489		589,095	0.14%	14.43	%
2005	0.50%	6,094		17.965801		109,484	0.00%	9.37	%
2004	0.50%	554		16.426073		9,100	0.00%	18.82	%
Oppenheimer VAF – Main Street® – Non-Service Shares
2007	0.50%	98,264		11.224071		1,102,922	1.00%	3.90	%
2006	0.50%	116,614		10.802733		1,259,750	1.11%	14.45	%
2005	0.50%	48,678		9.438598		459,452	1.25%	5.45	%
2004	0.50%	33,884		8.950876		303,291	0.84%	8.91	%
2003	0.50%	10,060		8.218350		82,677	0.90%	26.90	%

(Continued)

82

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Oppenheimer VAF – Mid Cap Fund – Non-Service Shares
2007	0.50%	97,260	$	6.913096	$	672,368	0.00%	5.80	%
2006	0.50%	84,198		6.534169		550,164	0.00%	2.44	%
2005	0.50%	62,332		6.378300		397,572	0.00%	11.77	%
2004	0.50%	50,906		5.706718		290,506	0.00%	19.18	%
2003	0.50%	15,822		4.788336		75,761	0.00%	24.96	%
Putnam VT – Growth and Income Fund – IB Shares
2007	0.50%	5,046		15.457268		77,997	1.31%	-6.51	%
2006	0.50%	4,488		16.533564		74,203	1.14%	15.33	%
2005	0.50%	486		14.335363		6,967	1.56%	4.70	%
2004	0.50%	236		13.691228		3,231	1.66%	10.56	%
Putnam VT – International Equity Fund – IB Shares
2007	0.50%	15,198		22.560940		342,881	2.65%	7.82	%
2006	0.50%	7,758		20.923951		162,328	0.44%	27.08	%
2005	0.50%	1,404		16.464692		23,116	1.11%	11.64	%
2004	0.50%	1,000		14.748085		14,748	1.61%	15.62	%
Putnam VT – Voyager Fund – IB Shares
2007	0.50%	1,450		14.302715		20,739	0.00%	4.99	%
2006	0.50%	1,246		13.622763		16,974	0.13%	4.91	%
2005	0.50%	2,788		12.985042		36,202	0.60%	5.17	%
2004	0.50%	720		12.347084		8,890	0.19%	4.51	%
T. Rowe Price Blue Chip Growth Portfolio – II
2007	0.50%	41,802		13.731252		573,994	0.12%	11.92	%
2006	0.50%	16,190		12.268264		198,623	0.24%	8.79	%
2005	0.50%	818		11.277528		9,225	0.29%	12.78	%   05/02/05
T. Rowe Price Equity Income Portfolio – II
2007	0.50%	84,110		12.830632		1,079,184	1.53%	2.51	%
2006	0.50%	58,750		12.516081		735,320	1.59%	18.06	%
2005	0.50%	5,032		10.601687		53,348	1.20%	6.02	%   05/02/05
T. Rowe Price Limited Term Bond Portfolio – Class II
2007	0.50%	30,906		10.939079		338,083	3.91%	4.70	%
2006	0.50%	1,008		10.448149		10,532	3.80%	3.51	%
2005	0.50%	540		10.094160		5,451	1.39%	0.94	%   05/02/05
The Dreyfus Socially Responsible Growth Fund, Inc. – Initial Shares
2007	0.50%	133,118		28.017912		3,729,688	0.53%	7.25	%
2006	0.50%	88,854		26.125145		2,321,324	0.11%	8.66	%
2005	0.50%	50,962		24.043585		1,225,309	0.00%	3.10	%
2004	0.50%	31,910		23.320608		744,161	0.38%	5.68	%
2003	0.50%	7,832		22.067029		172,829	0.11%	25.38	%
Turner GVIT Growth Focus Fund – Class I
2003	0.50%	17,823		3.283013		58,513	0.00%	50.21	%
Van Eck Worldwide Insurance Trust – Bond Fund – Initial Class
2007	0.50%	62,084		25.275372		1,569,196	5.77%	9.16	%
2006	0.50%	48,396		23.154258		1,120,573	8.51%	5.95	%
2005	0.50%	43,868		21.853802		958,683	7.55%	-3.51	%
2004	0.50%	36,364		22.649785		823,637	8.78%	8.61	%
2003	0.50%	19,995		20.854897		416,994	1.75%	17.57	%
Van Eck Worldwide Insurance Trust – Emerging Markets Fund – Initial Class
2007	0.50%	266,244		30.162210		8,030,507	0.43%	36.92	%
2006	0.50%	193,210		22.028276		4,256,083	0.60%	38.80	%
2005	0.50%	142,848		15.870762		2,267,107	0.73%	31.34	%
2004	0.50%	56,568		12.083728		683,552	0.59%	25.26	%
2003	0.50%	60,208		9.646671		580,807	0.11%	53.42	%
Van Eck Worldwide Insurance Trust – Hard Assets Fund – Initial Class
2007	0.50%	157,032		55.552048		8,723,449	0.11%	44.63	%
2006	0.50%	127,868		38.410275		4,911,445	0.07%	23.87	%
2005	0.50%	94,726		31.007818		2,937,247	0.30%	50.92	%
2004	0.50%	65,614		20.546330		1,348,127	0.37%	23.61	%
2003	0.50%	19,105		16.655601		318,205	0.48%	44.36	%

(Continued)

83

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Van Kampen UIF – Core Plus Fixed Income Portfolio – Class I
2007	0.50%	34,752	$	11.894818	$	413,369	3.05%	4.92	%
2006	0.50%	13,740		11.336567		155,764	3.94%	3.22	%
2005	0.50%	10,072		10.983426		110,625	3.62%	3.70	%
2004	0.50%	3,084		10.591991		32,666	4.78%	3.85	%
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I
2007	0.50%	69,830		21.615486		1,509,409	7.41%	6.00	%
2006	0.50%	51,120		20.392381		1,042,459	7.72%	10.26	%
2005	0.50%	28,944		18.495488		535,333	7.52%	11.69	%
2004	0.50%	16,150		16.559313		267,433	6.41%	9.51	%
2003	0.50%	7,714		15.120856		116,642	0.00%	27.23	%
Van Kampen UIF – U.S. Real Estate Portfolio – Class I
2007	0.50%	173,362		51.418211		8,913,964	1.10%	-17.49	%
2006	0.50%	158,492		62.315078		9,876,441	1.08%	37.36	%
2005	0.50%	94,426		45.366664		4,283,793	1.22%	16.47	%
2004	0.50%	69,458		38.951553		2,705,497	1.55%	35.71	%
2003	0.50%	28,086		28.701013		806,097	0.00%	36.83	%
Wells Fargo AVT – Discovery FundSM
2007	0.50%	135,048		45.401702		6,131,409	0.00%	21.71	%
2006	0.50%	128,414		37.303028		4,790,231	0.00%	14.07	%
2005	0.50%	83,820		32.700726		2,740,975	0.00%	7.73	%
2004	0.50%	50,972		30.353233		1,547,165	0.00%	15.14	%
2003	0.50%	18,256		26.361651		481,258	0.00%	38.73	%
Wells Fargo AVT – Opportunity FundSM
2007	0.50%	313,396		60.885541		19,081,285	0.61%	6.10	%
2006	0.50%	290,006		57.385680		16,642,192	0.00%	11.66	%
2005	0.50%	200,868		51.392952		10,323,199	0.00%	7.35	%
2004	0.50%	143,178		47.875122		6,854,664	0.00%	17.63	%
2003	0.50%	38,309		40.699472		1,559,156	0.07%	36.32	%
Multiple Payment contracts and Flexible Premium contracts
AIM VIF – Basic Value Fund – Series I
2007	0.80%	10,750		16.995087		182,697	0.50%	0.73	%
2006	0.80%	20,662		16.871856		348,606	0.55%	12.30	%
2005	0.80%	24,934		15.023289		374,591	0.09%	4.90	%
2004	0.80%	43,590		14.322072		624,299	0.00%	10.18	%
2003	0.80%	14,499		12.998258		188,462	0.11%	29.98	%   05/01/03
AIM VIF – Capital Appreciation Fund – Series I
2007	0.80%	2,752		16.497826		45,402	0.00%	11.12	%
2006	0.80%	1,686		14.847340		25,033	0.04%	5.46	%
2005	0.80%	4,924		14.079275		69,326	0.04%	7.97	%
2004	0.80%	4,090		13.039850		53,333	0.00%	5.78	%
2003	0.80%	5,333		12.327742		65,744	0.00%	23.28	%   05/01/03
AIM VIF – Capital Development Fund – Series I
2007	0.80%	5,092		20.491015		104,340	0.00%	9.96	%
2006	0.80%	7,586		18.635564		141,369	0.00%	15.59	%
2005	0.80%	9,328		16.121553		150,382	0.00%	8.73	%
2004	0.80%	9,498		14.826548		140,823	0.00%	14.58	%
2003	0.80%	3,166		12.939952		40,968	0.00%	29.40	%   05/01/03
AllianceBernstein VPS – Growth and Income Portfolio – Class A
2007	0.80%	15,124		17.272663		261,232	1.55%	4.28	%
2006	0.80%	28,032		16.564321		464,331	1.47%	16.35	%
2005	0.80%	37,766		14.236062		537,639	1.68%	4.03	%
2004	0.80%	38,966		13.684124		533,216	0.96%	10.57	%
2003	0.80%	22,041		12.375515		272,769	0.00%	23.76	%   05/01/03
AllianceBernstein VPS – Small/Mid Cap Value Portfolio – Class A
2007	0.80%	10,032		19.727780		197,909	1.06%	0.89	%
2006	0.80%	22,658		19.553834		443,051	0.39%	13.51	%
2005	0.80%	29,330		17.226379		505,250	0.72%	6.06	%
2004	0.80%	43,250		16.241455		702,443	0.13%	18.35	%
2003	0.80%	11,736		13.722986		161,053	0.02%	37.23	%   05/01/03

(Continued)

84

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
American Century VP – Balanced Fund – Class I
2007	0.80%	62,528	$	26.600354	$	1,663,267	2.12%	4.09	%
2006	0.80%	90,872		25.553959		2,322,139	1.93%	8.75	%
2005	0.80%	119,320		23.498278		2,803,815	1.83%	4.10	%
2004	0.80%	159,436		22.572554		3,598,878	1.68%	8.90	%
2003	0.80%	195,164		20.727117		4,045,187	2.53%	18.51	%
American Century VP – Capital Appreciation Fund – Class I
2007	0.80%	170,672		36.529047		6,234,486	0.00%	44.64	%
2006	0.80%	250,368		25.255777		6,323,238	0.00%	16.29	%
2005	0.80%	365,618		21.718376		7,940,629	0.00%	21.09	%
2004	0.80%	460,364		17.935168		8,256,706	0.00%	6.73	%
2003	0.80%	592,724		16.804738		9,960,572	0.00%	19.51	%
American Century VP – Income & Growth Fund – Class I
2007	0.80%	55,800		14.099337		786,743	1.88%	-0.87	%
2006	0.80%	99,066		14.222782		1,408,994	1.88%	16.16	%
2005	0.80%	157,452		12.244450		1,927,913	2.03%	3.80	%
2004	0.80%	220,344		11.796249		2,599,233	1.44%	12.09	%
2003	0.80%	259,996		10.523680		2,736,115	1.30%	28.32	%
American Century VP – Inflation Protection Fund – Class II
2007	0.80%	14,896		11.886541		177,062	4.41%	8.61	%
2006	0.80%	38,652		10.943891		423,003	3.22%	0.78	%
2005	0.80%	71,902		10.859530		780,822	4.38%	0.75	%
2004	0.80%	72,104		10.778433		777,168	3.57%	4.96	%
2003	0.80%	6,574		10.268669		67,506	1.88%	2.69	%   04/30/03
American Century VP – International Fund – Class I
2007	0.80%	73,188		28.238561		2,066,724	0.72%	17.11	%
2006	0.80%	165,218		24.112654		3,983,844	1.65%	24.03	%
2005	0.80%	311,096		19.440637		6,047,904	1.27%	12.35	%
2004	0.80%	471,466		17.302961		8,157,758	0.58%	14.01	%
2003	0.80%	587,899		15.176915		8,922,493	0.75%	23.52	%
American Century VP – International Fund – Class III
2007	0.80%	56,198		16.867137		947,899	0.60%	17.11	%
2006	0.80%	80,238		14.402688		1,155,643	1.19%	24.03	%
2005	0.80%	69,942		11.612061		812,171	0.00%	16.12	%   05/02/05
American Century VP – Mid Cap Value Fund – Class I
2007	0.80%	15,018		13.025836		195,622	0.70%	-3.09	%
2006	0.80%	15,610		13.440882		209,812	1.31%	19.34	%
2005	0.80%	5,722		11.262347		64,443	1.06%	12.62	%   05/02/05
American Century VP – Ultra® Fund – Class I
2007	0.80%	11,886		12.699015		150,940	0.00%	20.05	%
2006	0.80%	18,008		10.578387		190,496	0.00%	-4.04	%
2005	0.80%	34,120		11.024259		376,148	0.00%	1.35	%
2004	0.80%	37,042		10.877007		402,906	0.00%	9.79	%
2003	0.80%	34,345		9.906750		340,247	0.00%	23.90	%
American Century VP – Value Fund – Class I
2007	0.80%	102,224		24.709849		2,525,940	1.65%	-5.90	%
2006	0.80%	200,588		26.258655		5,267,171	1.39%	17.71	%
2005	0.80%	333,368		22.307840		7,436,720	0.88%	4.20	%
2004	0.80%	363,556		21.408869		7,783,323	1.01%	13.42	%
2003	0.80%	461,113		18.875362		8,703,675	1.09%	27.93	%
American Century VP – VistaSM Fund – Class I
2007	0.80%	18,398		17.097896		314,567	0.00%	38.65	%
2006	0.80%	1,344		12.331439		16,573	0.00%	8.14	%
2005	0.80%	2,306		11.403054		26,295	0.00%	14.03	%   05/02/05
Credit Suisse Trust – Global Small Cap Portfolio
2007	0.80%	13,468		15.395235		207,343	0.00%	-4.73	%
2006	0.80%	24,796		16.158907		400,676	0.00%	12.30	%
2005	0.80%	36,140		14.388419		519,997	0.00%	15.22	%
2004	0.80%	40,182		12.487641		501,778	0.00%	17.05	%
2003	0.80%	53,805		10.668685		574,029	0.00%	46.48	%

(Continued)

85

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Credit Suisse Trust – International Focus Portfolio
2007	0.80%	91,976	$	19.310277	$	1,776,082	1.08%	15.66	%
2006	0.80%	174,476		16.695427		2,912,951	1.03%	17.71	%
2005	0.80%	320,444		14.183450		4,545,001	0.91%	16.51	%
2004	0.80%	369,172		12.174019		4,494,307	0.99%	13.83	%
2003	0.80%	431,745		10.695076		4,617,546	0.49%	32.03	%
Credit Suisse Trust – Small Cap Core I Portfolio
2007	0.80%	153,520		18.601963		2,855,773	0.00%	-1.63	%
2006	0.80%	270,450		18.909841		5,114,166	0.00%	3.94	%
2005	0.80%	443,896		18.193863		8,076,183	0.00%	-3.45	%
2004	0.80%	539,886		18.844567		10,173,918	0.00%	9.99	%
2003	0.80%	692,838		17.133573		11,870,790	0.00%	47.37	%
Dreyfus IP – Small Cap Stock Index Portfolio – Service Shares
2007	0.80%	22,938		15.013257		344,374	0.37%	-1.45	%
2006	0.80%	42,596		15.234242		648,918	0.36%	13.50	%
2005	0.80%	52,974		13.422021		711,018	0.00%	6.38	%
2004	0.80%	70,472		12.616946		889,141	0.50%	20.91	%
2003	0.80%	47,348		10.434661		494,060	0.33%	36.68	%
Dreyfus Stock Index Fund, Inc. – Initial Shares
2007	0.80%	618,332		35.246027		21,793,746	1.70%	4.41	%
2006	0.80%	1,054,364		33.756668		35,591,815	1.65%	14.58	%
2005	0.80%	1,502,104		29.461184		44,253,762	1.60%	3.86	%
2004	0.80%	1,932,026		28.366357		54,804,539	1.80%	9.76	%
2003	0.80%	2,290,356		25.844217		59,192,457	1.51%	27.34	%
Dreyfus VIF – Appreciation Portfolio – Initial Shares
2007	0.80%	94,654		17.027724		1,611,742	1.61%	6.27	%
2006	0.80%	155,994		16.022432		2,499,403	1.49%	15.55	%
2005	0.80%	211,690		13.866041		2,935,302	0.02%	3.55	%
2004	0.80%	279,490		13.390880		3,742,617	1.63%	4.21	%
2003	0.80%	338,655		12.850022		4,351,724	1.40%	20.20	%
Dreyfus VIF – Developing Leaders Portfolio – Initial Shares
2007	0.80%	4,684		13.512011		63,290	0.83%	-11.77	%
2006	0.80%	11,426		15.314886		174,988	0.43%	2.95	%
2005	0.80%	17,282		14.876684		257,099	0.00%	4.96	%
2004	0.80%	22,806		14.173675		323,245	0.22%	10.45	%
2003	0.80%	8,113		12.832258		104,108	0.08%	28.32	%   05/01/03
Dreyfus VIF – Growth and Income Portfolio – Initial Shares
2007	0.80%	47,184		16.406411		774,120	0.76%	7.58	%
2006	0.80%	83,514		15.250864		1,273,661	0.77%	13.60	%
2005	0.80%	98,630		13.424762		1,324,084	1.34%	2.53	%
2004	0.80%	117,298		13.093387		1,535,828	1.23%	6.61	%
2003	0.80%	140,345		12.281397		1,723,633	0.84%	25.56	%
Federated IS – American Leaders Fund II – Primary Shares
2007	0.80%	1,754		14.765636		25,899	1.55%	-10.39	%
2006	0.80%	1,782		16.477377		29,363	1.47%	15.88	%
2005	0.80%	5,150		14.219360		73,230	1.33%	4.19	%
2004	0.80%	5,782		13.647806		78,912	0.41%	8.90	%
2003	0.80%	1,104		12.531875		13,835	0.00%	25.32	%   05/01/03
Federated IS – Capital Appreciation Fund II – Primary Shares
2007	0.80%	626		16.228297		10,159	0.71%	9.00	%
2006	0.80%	638		14.888388		9,499	0.79%	15.29	%
2005	0.80%	606		12.913893		7,826	1.07%	1.10	%
2004	0.80%	770		12.772814		9,835	0.28%	6.54	%
2003	0.80%	553		11.988805		6,630	0.00%	19.89	%   05/01/03
Federated IS – Market Opportunity Fund II – Service Shares
2007	0.80%	88		10.105146		889	0.57%	-2.27	%
Federated IS – Quality Bond Fund II – Primary Shares
2007	0.80%	22,236		12.423584		276,251	4.97%	4.54	%
2006	0.80%	39,918		11.884116		474,390	3.43%	3.33	%
2005	0.80%	60,574		11.501519		696,693	3.65%	0.49	%
2004	0.80%	73,162		11.445157		837,351	4.98%	2.79	%
2003	0.80%	117,985		11.134037		1,313,649	3.93%	3.81	%

(Continued)

86

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Fidelity® VIP – Equity-Income Portfolio – Initial Class
2007	0.80%	336,206	$	56.363167	$	18,949,635	1.77%	0.72	%
2006	0.80%	547,442		55.961825		30,635,853	3.30%	19.24	%
2005	0.80%	824,566		46.932598		38,699,025	1.64%	5.02	%
2004	0.80%	1,112,750		44.687399		49,725,903	1.56%	10.64	%
2003	0.80%	1,336,308		40.389521		53,972,840	1.80%	29.29	%
Fidelity® VIP – Growth Portfolio – Initial Class
2007	0.80%	558,044		52.956740		29,552,191	0.82%	25.95	%
2006	0.80%	830,726		42.046610		34,929,212	0.40%	6.00	%
2005	0.80%	1,251,056		39.666280		49,624,738	0.51%	4.96	%
2004	0.80%	1,643,610		37.792486		62,116,108	0.27%	2.55	%
2003	0.80%	2,035,206		36.851094		74,999,568	0.27%	31.79	%
Fidelity® VIP – High Income Portfolio – Initial Class
2007	0.80%	118,930		30.491108		3,626,307	7.41%	1.96	%
2006	0.80%	240,204		29.904168		7,183,101	7.80%	10.35	%
2005	0.80%	356,194		27.098684		9,652,389	16.14%	1.88	%
2004	0.80%	565,686		26.597360		15,045,754	8.82%	8.72	%
2003	0.80%	720,241		24.464133		17,620,072	5.94%	26.25	%
Fidelity® VIP – High Income Portfolio – Initial Class R
2007	0.80%	30,864		9.837843		303,635	11.21%	-1.62	%   05/01/07
Fidelity® VIP – Overseas Portfolio – Initial Class
2007	0.80%	85,536		34.384792		2,941,138	3.29%	16.37	%
2006	0.80%	153,216		29.547189		4,527,102	0.91%	17.14	%
2005	0.80%	287,574		25.223510		7,253,626	0.71%	18.10	%
2004	0.80%	498,640		21.357697		10,649,802	1.14%	12.73	%
2003	0.80%	653,974		18.945840		12,390,087	0.83%	42.23	%
Fidelity® VIP – Overseas Portfolio – Service Class R
2007	0.80%	77,400		16.918813		1,309,516	3.21%	16.29	%
2006	0.80%	120,050		14.549286		1,746,642	0.77%	17.01	%
2005	0.80%	84,208		12.433969		1,047,040	0.00%	24.34	%   05/02/05
Fidelity® VIP II – Asset Manager Portfolio – Initial Class
2007	0.80%	132,782		34.628652		4,598,062	6.08%	14.58	%
2006	0.80%	202,948		30.222570		6,133,610	2.71%	6.46	%
2005	0.80%	261,190		28.387536		7,414,541	2.76%	3.22	%
2004	0.80%	416,912		27.502617		11,466,171	2.76%	4.63	%
2003	0.80%	623,055		26.285930		16,377,580	3.62%	17.04	%
Fidelity® VIP II – Contrafund® Portfolio – Initial Class
2007	0.80%	469,988		41.513259		19,510,734	0.93%	16.65	%
2006	0.80%	854,560		35.587790		30,411,902	1.27%	10.83	%
2005	0.80%	1,315,976		32.110552		42,256,716	0.29%	16.01	%
2004	0.80%	1,547,972		27.679601		42,847,247	0.34%	14.56	%
2003	0.80%	1,740,028		24.162368		42,043,197	0.46%	27.44	%
Fidelity® VIP II – Investment Grade Bond Portfolio – Service Class
2007	0.80%	36,890		11.393001		420,288	4.06%	3.38	%
2006	0.80%	50,982		11.020863		561,866	3.27%	3.47	%
2005	0.80%	184,098		10.651144		1,960,854	1.67%	1.27	%
2004	0.80%	47,726		10.517675		501,967	1.88%	3.49	%
2003	0.80%	12,869		10.163210		130,790	0.00%	1.63	%   05/01/03
Fidelity® VIP III – Growth Opportunities Portfolio – Initial Class
2007	0.80%	156,642		14.356892		2,248,892	0.00%	22.20	%
2006	0.80%	228,606		11.749061		2,685,906	0.69%	4.62	%
2005	0.80%	267,592		11.230531		3,005,200	0.95%	8.03	%
2004	0.80%	304,964		10.396153		3,170,452	0.53%	6.34	%
2003	0.80%	324,568		9.776597		3,173,171	0.74%	28.84	%
Fidelity® VIP III – Mid Cap Portfolio – Service Class
2007	0.80%	92,888		26.021877		2,417,120	0.70%	14.56	%
2006	0.80%	167,292		22.714275		3,799,916	0.25%	11.70	%
2005	0.80%	247,064		20.335877		5,024,263	0.00%	17.26	%
2004	0.80%	190,596		17.341823		3,305,282	0.00%	23.78	%
2003	0.80%	40,642		14.010381		569,410	0.00%	40.10	%   05/01/03

(Continued)

87

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Fidelity® VIP III – Value Strategies Portfolio – Service Class
2007	0.80%	11,738	$	16.242952	$	190,660	0.83%	4.75	%
2006	0.80%	26,916		15.505844		417,355	0.41%	15.27	%
2005	0.80%	47,774		13.451310		642,623	0.00%	1.74	%
2004	0.80%	79,260		13.221316		1,047,922	0.00%	13.08	%
2003	0.80%	100,700		11.692079		1,177,392	0.00%	56.53	%
Fidelity® VIP IV – Energy Portfolio – Service Class 2
2007	0.80%	71,504		22.469019		1,606,625	0.12%	44.48	%
2006	0.80%	110,500		15.552071		1,718,504	0.73%	15.69	%
2005	0.80%	82,484		13.442988		1,108,831	0.65%	34.43	%   05/02/05
Fidelity® VIP IV – Freedom Fund 2010 Portfolio – Service Class
2007	0.80%	4,636		12.616940		58,492	5.88%	7.78	%
2006	0.80%	9,704		11.706711		113,602	3.42%	8.91	%
2005	0.80%	2,332		10.748937		25,067	0.56%	7.49	%   05/02/05
Fidelity® VIP IV – Freedom Fund 2020 Portfolio – Service Class
2007	0.80%	10,358		13.406718		138,867	2.17%	9.28	%
2006	0.80%	16,066		12.267747		197,094	1.69%	10.92	%
2005	0.80%	15,234		11.059893		168,486	0.86%	10.60	%   05/02/05
Fidelity® VIP IV – Freedom Fund 2030 Portfolio – Service Class
2007	0.80%	13,868		13.956079		193,543	2.76%	10.32	%
2006	0.80%	11,130		12.650838		140,804	5.31%	12.25	%
2005	0.80%	3,818		11.269912		43,029	1.32%	12.70	%   05/02/05
Franklin Templeton VIP – Developing Markets Securities Fund – Class 3
2007	0.80%	31,074		20.674924		642,453	2.20%	27.67	%
2006	0.80%	41,104		16.194484		665,658	1.19%	27.15	%
2005	0.80%	18,806		12.736654		239,526	0.53%	27.37	%   05/02/05
Franklin Templeton VIP – Foreign Securities Fund – Class 1
2007	0.80%	7,764		23.655125		183,658	2.23%	14.86	%
2006	0.80%	20,280		20.594561		417,658	1.41%	20.73	%
2005	0.80%	46,522		17.058302		793,586	1.37%	9.60	%
2004	0.80%	64,070		15.564386		997,210	1.10%	17.93	%
2003	0.80%	22,318		13.198462		294,563	0.79%	31.98	%   05/01/03
Franklin Templeton VIP – Foreign Securities Fund – Class 3
2007	0.80%	25,180		15.495120		390,167	2.03%	14.52	%
2006	0.80%	35,494		13.530342		480,246	1.38%	20.50	%
2005	0.80%	19,372		11.228867		217,526	0.39%	12.29	%   05/02/05
Franklin Templeton VIP – Global Income Securities Fund – Class 3
2007	0.80%	9,674		12.119103		117,240	2.64%	10.14	%
2006	0.80%	19,066		11.003055		209,784	2.45%	11.95	%
2005	0.80%	2,864		9.828879		28,150	7.95%	-1.71	%   05/02/05
Franklin Templeton VIP – Income Securities Fund – Class 2
2007	0.80%	16,636		11.483411		191,038	3.26%	2.93	%
2006	0.80%	13,168		11.157005		146,915	0.00%	11.57	%   05/01/06
Franklin Templeton VIP – Rising Dividends Securities Fund – Class 1
2007	0.80%	61,684		15.670578		966,624	2.53%	-3.20	%
2006	0.80%	112,826		16.187918		1,826,418	1.22%	16.50	%
2005	0.80%	136,502		13.895780		1,896,802	1.09%	2.86	%
2004	0.80%	110,404		13.509605		1,491,514	0.66%	10.36	%
2003	0.80%	47,169		12.240997		577,396	0.20%	22.41	%   05/01/03
Franklin Templeton VIP – Small Cap Value Securities Fund – Class 1
2007	0.80%	37,560		19.978249		750,383	0.88%	-2.92	%
2006	0.80%	58,816		20.579116		1,210,381	0.82%	16.37	%
2005	0.80%	114,196		17.684023		2,019,445	0.91%	8.12	%
2004	0.80%	87,470		16.355679		1,430,631	0.19%	23.10	%
2003	0.80%	8,003		13.286230		106,330	0.12%	32.86	%   05/01/03
Gartmore GVIT – Small Cap Growth Fund: Class I – Intial Funding by Depositor
2006	0.80%	62,918		7.778128		489,384	0.00%	2.39	%
2005	0.80%	96,746		7.596795		734,960	0.00%	7.23	%
2004	0.80%	168,182		7.084474		1,191,481	0.00%	12.51	%
2003	0.80%	191,617		6.296628		1,206,541	0.00%	33.20	%

(Continued)

88

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Janus Aspen Series – Balanced Portfolio – Service Shares
2007	0.80%	3,168	$	15.086774	$	47,795	1.92%	9.40	%
2006	0.80%	5,148		13.789981		70,991	1.96%	9.54	%
2005	0.80%	11,204		12.589281		141,050	2.56%	6.81	%
2004	0.80%	6,582		11.787133		77,583	3.27%	7.43	%
2003	0.80%	2,548		10.971897		27,956	4.49%	9.72	%   05/01/03
Janus Aspen Series – Forty Portfolio – Service Shares
2007	0.80%	84,802		11.671311		989,751	0.19%	35.54	%
2006	0.80%	164,548		8.610938		1,416,913	0.14%	8.25	%
2005	0.80%	225,546		7.954734		1,794,158	0.01%	11.66	%
2004	0.80%	271,392		7.123936		1,933,379	0.02%	17.03	%
2003	0.80%	331,505		6.087370		2,017,994	0.25%	19.28	%
Janus Aspen Series – Global Technology Portfolio – Service Shares
2007	0.80%	63,600		5.089898		323,718	0.37%	20.72	%
2006	0.80%	109,934		4.216170		463,500	0.00%	6.97	%
2005	0.80%	195,006		3.941403		768,597	0.00%	10.66	%
2004	0.80%	234,210		3.561614		834,166	0.00%	-0.23	%
2003	0.80%	262,295		3.569999		936,393	0.00%	45.31	%
Janus Aspen Series – INTECH Risk-Managed Core Portfolio – Service Shares
2007	0.80%	1,936		18.151877		35,142	0.36%	5.28	%
2006	0.80%	3,660		17.241178		63,103	0.10%	9.89	%
2005	0.80%	11,304		15.689665		177,356	1.43%	10.03	%
2004	0.80%	4,180		14.259340		59,604	2.29%	16.53	%
2003	0.80%	649		12.236775		7,942	0.30%	22.37	%   05/01/03
Janus Aspen Series – International Growth Portfolio – Service II Shares
2007	0.80%	79,558		14.696304		1,169,209	0.50%	27.05	%
2006	0.80%	102,986		11.567583		1,191,299	1.97%	15.68	%   05/01/06
Janus Aspen Series – International Growth Portfolio – Service Shares
2007	0.80%	63,014		16.812702		1,059,436	0.43%	26.99	%
2006	0.80%	110,056		13.239048		1,457,037	1.92%	45.46	%
2005	0.80%	171,522		9.101228		1,561,061	1.14%	30.89	%
2004	0.80%	166,012		6.953243		1,154,322	0.83%	17.74	%
2003	0.80%	186,894		5.905539		1,103,710	0.99%	33.46	%
Lehman Brothers AMT – Short Duration Bond Portfolio – I Class
2007	0.80%	30,596		19.629002		600,569	2.65%	3.93	%
2006	0.80%	50,380		18.886370		951,495	3.06%	3.37	%
2005	0.80%	93,430		18.269985		1,706,965	2.61%	0.64	%
2004	0.80%	165,170		18.154314		2,998,548	3.64%	-0.02	%
2003	0.80%	195,325		18.158640		3,546,836	4.41%	1.61	%
MFS VIT – Investors Growth Stock Series – Initial Class
2007	0.80%	3,892		15.269711		59,430	0.34%	10.47	%
2006	0.80%	9,996		13.822967		138,174	0.00%	6.72	%
2005	0.80%	13,712		12.952455		177,604	0.38%	3.66	%
2004	0.80%	15,444		12.495325		192,978	0.00%	8.32	%
2003	0.80%	3,685		11.536092		42,510	0.00%	15.36	%   05/01/03
MFS VIT – Value Series – Initial Class
2007	0.80%	9,924		19.086229		189,412	0.91%	7.04	%
2006	0.80%	23,056		17.830357		411,097	0.80%	19.88	%
2005	0.80%	12,536		14.873414		186,453	0.65%	5.81	%
2004	0.80%	9,316		14.056392		130,949	0.34%	14.26	%
2003	0.80%	3,296		12.301954		40,547	0.00%	23.02	%   05/01/03
Nationwide VIT – American Funds Asset Allocation Fund – Class II
2007	0.80%	17,818		11.056758		197,009	2.56%	5.29	%
2006	0.80%	23,042		10.501149		241,967	3.56%	5.01	%   05/01/06
Nationwide VIT – American Funds Bond Fund – Class II
2007	0.80%	7,668		10.709255		82,119	8.87%	2.16	%
2006	0.80%	11,396		10.483128		119,466	0.05%	4.83	%   05/01/06
Nationwide VIT – American Funds Global Growth Fund – Class II
2007	0.80%	23,258		12.235118		284,564	2.69%	13.45	%
2006	0.80%	15,330		10.784738		165,330	0.07%	7.85	%   05/01/06

(Continued)

89

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Nationwide VIT – American Funds Growth – Income Fund – Class II
2007	0.80%	1,646	$	9.839552	$	16,196	3.27%	-1.60	%   05/01/07
Nationwide VIT – American Funds Growth Fund – Class II
2007	0.80%	27,580		11.443839		315,621	0.68%	11.00	%
2006	0.80%	17,582		10.309581		181,263	1.29%	3.10	%   05/01/06
Nationwide VIT – Federated High Income Bond Fund – Class I
2007	0.80%	3,306		13.772430		45,532	7.20%	2.31	%
2006	0.80%	8,630		13.461693		116,174	7.10%	9.72	%
2005	0.80%	15,130		12.268656		185,625	6.81%	1.57	%
2004	0.80%	29,550		12.079399		356,946	8.50%	9.22	%
2003	0.80%	13,029		11.059766		144,098	9.25%	10.60	%   05/01/03
Nationwide VIT – Federated High Income Bond Fund – Class III
2007	0.80%	11,368		11.773527		133,841	8.02%	2.34	%
2006	0.80%	9,102		11.504161		104,711	7.03%	9.72	%
2005	0.80%	8,904		10.485051		93,359	6.33%	4.85	%   05/02/05
Nationwide VIT – Gartmore Emerging Markets Fund – Class I
2007	0.80%	13,266		34.811779		461,813	0.71%	44.41	%
2006	0.80%	24,800		24.105617		597,819	0.72%	35.63	%
2005	0.80%	57,534		17.772777		1,022,539	0.61%	31.58	%
2004	0.80%	84,992		13.506849		1,147,974	0.93%	19.78	%
2003	0.80%	74,580		11.276219		840,980	0.66%	63.95	%
Nationwide VIT – Gartmore Emerging Markets Fund – Class III
2007	0.80%	61,574		25.965810		1,598,819	0.74%	44.38	%
2006	0.80%	71,548		17.983970		1,286,717	0.78%	35.56	%
2005	0.80%	49,358		13.266490		654,807	0.19%	32.66	%   05/02/05
Nationwide VIT – Gartmore Global Utilities Fund – Class I
2007	0.80%	18,462		23.582792		435,386	2.36%	19.47	%
2006	0.80%	44,146		19.739493		871,420	2.82%	36.47	%
2005	0.80%	52,446		14.464451		758,603	2.16%	5.54	%
2004	0.80%	38,258		13.704848		524,320	1.92%	28.93	%
2003	0.80%	6,211		10.629478		66,020	0.70%	23.06	%
Nationwide VIT – Gartmore International Growth Fund – Class I
2007	0.80%	24,468		16.114464		394,289	0.38%	26.13	%
2006	0.80%	90,176		12.776337		1,152,119	0.78%	31.91	%
2005	0.80%	37,028		9.685731		358,643	1.03%	29.17	%
2004	0.80%	16,036		7.498148		120,240	1.40%	13.28	%
2003	0.80%	5,733		6.618892		37,946	0.00%	34.54	%
Nationwide VIT – Global Financial Services Fund – Class I
2007	0.80%	8,522		18.752014		159,805	3.13%	-1.85	%
2006	0.80%	20,092		19.104581		383,849	1.89%	19.37	%
2005	0.80%	31,498		16.005171		504,131	2.00%	10.27	%
2004	0.80%	23,526		14.514755		341,474	1.45%	20.03	%
2003	0.80%	19,256		12.092670		232,856	0.88%	40.33	%
Nationwide VIT – Global Health Sciences Fund – Class I
2007	0.80%	2,752		14.810633		40,759	0.08%	12.25	%
2006	0.80%	3,876		13.193822		51,139	0.00%	1.89	%
2005	0.80%	24,756		12.948895		320,563	0.00%	7.58	%
2004	0.80%	44,046		12.036757		530,171	0.00%	7.00	%
2003	0.80%	22,955		11.249287		258,227	0.00%	35.61	%
Nationwide VIT – Global Health Sciences Fund – Class III
2007	0.80%	5,112		12.228112		62,510	0.09%	12.32	%
2006	0.80%	14,692		10.886820		159,949	0.00%	1.89	%
2005	0.80%	19,656		10.685265		210,030	0.00%	6.85	%   05/02/05
Nationwide VIT – Global Technology and Communications Fund – Class I
2007	0.80%	35,194		4.002446		140,862	0.00%	19.13	%
2006	0.80%	51,828		3.359674		174,125	0.00%	10.29	%
2005	0.80%	124,346		3.046342		378,800	0.00%	-1.31	%
2004	0.80%	219,234		3.086695		676,708	0.00%	3.48	%
2003	0.80%	304,934		2.982846		909,571	0.00%	54.00	%

(Continued)

90

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Nationwide VIT – Global Technology and Communications Fund – Class III
2007	0.80%	8,672	$	16.097584	$	139,598	0.00%	19.22	%
2006	0.80%	8,150		13.502082		110,042	0.00%	10.20	%
2005	0.80%	10,504		12.252375		128,699	0.00%	22.52	%   05/02/05
Nationwide VIT – Government Bond Fund – Class I
2007	0.80%	102,864		26.510441		2,726,970	4.45%	6.30	%
2006	0.80%	157,392		24.939296		3,925,246	4.11%	2.52	%
2005	0.80%	225,488		24.326268		5,485,282	3.64%	2.44	%
2004	0.80%	314,094		23.746180		7,458,533	5.48%	2.44	%
2003	0.80%	448,119		23.180734		10,387,727	3.14%	1.19	%
Nationwide VIT – Growth Fund – Class I
2007	0.80%	427,558		22.441944		9,595,233	0.17%	18.59	%
2006	0.80%	597,654		18.924499		11,310,303	0.05%	5.32	%
2005	0.80%	720,822		17.967853		12,951,624	0.08%	5.65	%
2004	0.80%	818,234		17.006258		13,915,099	0.33%	7.30	%
2003	0.80%	936,407		15.849998		14,842,049	0.02%	31.68	%
Nationwide VIT – International Index Fund – Class VI
2007	0.80%	678		11.858321		8,040	1.82%	8.62	%
2006	0.80%	1,052		10.917219		11,485	1.38%	9.17	%   05/01/06
Nationwide VIT – International Value Fund – Class I
2007	0.80%	5,630		22.865372		128,732	2.06%	2.09	%
2006	0.80%	14,186		22.396963		317,723	2.08%	21.70	%
2005	0.80%	27,788		18.404112		511,413	1.34%	11.20	%
2004	0.80%	64,536		16.550116		1,068,078	2.03%	19.33	%
2003	0.80%	6,704		13.764414		92,277	0.00%	37.64	%   05/01/03
Nationwide VIT – International Value Fund – Class III
2007	0.80%	30,584		14.163711		433,183	2.12%	2.11	%
2006	0.80%	45,492		13.871454		631,040	2.01%	21.77	%
2005	0.80%	35,798		11.391430		407,790	0.95%	13.91	%   05/02/05
Nationwide VIT – Investor Destinations Aggressive Fund – Class II
2007	0.80%	73,246		15.967821		1,169,579	2.03%	5.11	%
2006	0.80%	91,086		15.191606		1,383,743	2.11%	15.94	%
2005	0.80%	85,552		13.103041		1,120,991	1.95%	7.07	%
2004	0.80%	57,102		12.237400		698,780	1.75%	13.12	%
2003	0.80%	45,840		10.818285		495,910	1.41%	30.82	%
Nationwide VIT – Investor Destinations Conservative Fund – Class II
2007	0.80%	19,826		12.509560		248,015	3.97%	4.54	%
2006	0.80%	20,230		11.966643		242,085	2.89%	5.32	%
2005	0.80%	40,486		11.362140		460,008	2.78%	2.49	%
2004	0.80%	44,818		11.086539		496,877	2.46%	3.82	%
2003	0.80%	27,042		10.678769		288,775	2.37%	7.05	%
Nationwide VIT – Investor Destinations Moderate Fund – Class II
2007	0.80%	137,718		14.206661		1,956,513	2.62%	4.81	%
2006	0.80%	241,266		13.554301		3,270,192	2.50%	10.47	%
2005	0.80%	234,442		12.269879		2,876,575	2.36%	4.51	%
2004	0.80%	230,378		11.740731		2,704,806	2.27%	8.66	%
2003	0.80%	153,659		10.804715		1,660,242	2.06%	19.10	%
Nationwide VIT – Investor Destinations Moderately Aggressive Fund – Class II
2007	0.80%	177,620		15.311321		2,719,597	2.25%	5.30	%
2006	0.80%	247,768		14.540668		3,602,712	2.27%	13.63	%
2005	0.80%	281,378		12.796464		3,600,643	2.14%	6.22	%
2004	0.80%	250,424		12.046998		3,016,857	1.97%	11.20	%
2003	0.80%	180,393		10.833658		1,954,316	1.54%	25.64	%
Nationwide VIT – Investor Destinations Moderately Conservative Fund – Class II
2007	0.80%	100,130		13.435963		1,345,343	2.92%	5.01	%
2006	0.80%	99,224		12.794782		1,269,549	2.76%	7.56	%
2005	0.80%	88,944		11.895366		1,058,021	2.75%	3.66	%
2004	0.80%	43,224		11.475860		496,033	2.48%	6.31	%
2003	0.80%	40,296		10.795210		435,004	2.34%	12.79	%

(Continued)

91

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Units Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Nationwide VIT – Mid Cap Growth Fund – Class I
2007	0.80%	39,732	$	7.151367	$	284,138	0.00%	8.14	%
2006	0.80%	77,924		6.612974		515,309	0.00%	9.03	%
2005	0.80%	88,246		6.065031		535,215	0.00%	8.87	%
2004	0.80%	97,936		5.570908		545,592	0.00%	14.42	%
2003	0.80%	398,980		4.868865		1,942,580	0.00%	39.02	%
Nationwide VIT – Mid Cap Index Fund – Class I
2007	0.80%	81,490		17.072106		1,391,206	1.35%	6.70	%
2006	0.80%	141,094		16.000413		2,257,562	1.13%	9.02	%
2005	0.80%	229,268		14.677115		3,364,993	1.03%	11.21	%
2004	0.80%	324,610		13.197899		4,284,170	0.54%	14.81	%
2003	0.80%	402,465		11.495433		4,626,509	0.49%	33.58	%
Nationwide VIT – Money Market Fund – Class I
2007	0.80%	329,710		16.477531		5,432,807	4.64%	3.95	%
2006	0.80%	566,642		15.851431		8,982,087	4.49%	3.70	%
2005	0.80%	727,730		15.286397		11,124,370	2.64%	1.85	%
2004	0.80%	899,340		15.008890		13,498,095	0.78%	0.00	%
2003	0.80%	1,224,466		15.008153		18,376,973	0.63%	-0.18	%
Nationwide VIT – Multi-Manager Small Cap Growth Fund – Class I
2007	0.80%	29,062		8.468125		246,101	0.00%	8.87	%
Nationwide VIT – Multi-Manager Small Cap Value Fund – Class I
2007	0.80%	92,646		21.905042		2,029,415	1.10%	-7.64	%
2006	0.80%	175,584		23.717026		4,164,330	0.43%	16.36	%
2005	0.80%	287,838		20.382189		5,866,769	0.06%	2.25	%
2004	0.80%	410,958		19.932939		8,191,601	0.00%	16.36	%
2003	0.80%	566,915		17.129814		9,711,149	0.00%	55.61	%
Nationwide VIT – Multi-Manager Small Company Fund – Class I
2007	0.80%	190,308		39.414039		7,500,807	0.09%	1.31	%
2006	0.80%	325,094		38.902849		12,647,083	0.11%	11.15	%
2005	0.80%	568,428		35.000912		19,895,498	0.00%	11.42	%
2004	0.80%	659,468		31.412204		20,715,343	0.00%	18.07	%
2003	0.80%	812,594		26.603797		21,618,086	0.00%	39.89	%
Nationwide VIT – Nationwide Fund – Class I
2007	0.80%	846,056		43.389809		36,710,208	1.05%	7.31	%
2006	0.80%	1,155,132		40.432316		46,704,662	1.08%	12.72	%
2005	0.80%	1,522,010		35.868129		54,591,651	0.91%	6.59	%
2004	0.80%	1,808,392		33.651239		60,854,631	1.28%	8.88	%
2003	0.80%	2,115,628		30.907637		65,389,062	0.56%	26.50	%
Nationwide VIT – Nationwide Leaders Fund – Class I
2007	0.80%	7,118		17.182548		122,305	1.15%	10.67	%
2006	0.80%	10,376		15.526442		161,102	0.97%	15.12	%
2005	0.80%	12,432		13.486728		167,667	1.54%	9.44	%
2004	0.80%	3,724		12.323917		45,894	0.52%	17.85	%
2003	0.80%	6,691		10.457551		69,971	0.19%	24.39	%
Nationwide VIT – U.S. Growth Leaders Fund – Class I
2007	0.80%	7,828		18.384573		143,914	0.00%	21.50	%
2006	0.80%	13,106		15.130732		198,303	0.25%	-1.08	%
2005	0.80%	30,714		15.296041		469,803	0.00%	11.07	%
2004	0.80%	27,528		13.771155		379,092	0.00%	11.51	%
2003	0.80%	55,080		12.349314		680,200	0.00%	50.93	%
Nationwide VIT – Van Kampen Comstock Value Fund – Class I
2007	0.80%	10,218		16.947459		173,169	1.71%	-3.00	%
2006	0.80%	22,182		17.471634		387,556	1.74%	14.98	%
2005	0.80%	32,400		15.194781		492,311	1.69%	3.42	%
2004	0.80%	29,708		14.692503		436,485	1.56%	16.56	%
2003	0.80%	9,638		12.604789		121,485	1.52%	26.05	%   05/01/03
Nationwide VIT – Van Kampen Multi Sector Bond Fund – Class I
2007	0.80%	19,404		14.756333		286,332	4.10%	3.79	%
2006	0.80%	37,902		14.217959		538,889	4.42%	4.00	%
2005	0.80%	44,454		13.670462		607,707	3.89%	1.37	%
2004	0.80%	59,986		13.485955		808,968	4.85%	5.68	%
2003	0.80%	67,316		12.760526		858,988	5.47%	11.22	%

(Continued)

92

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Neuberger Berman AMT – Balanced Portfolio – I Class Shares
2007	0.80%	1,448	$	31.451710	$	45,542	0.81%	14.68	%
2006	0.80%	852		27.426214		23,367	0.77%	9.79	%
2005	0.80%	1,268		24.981076		31,676	1.03%	8.31	%
2004	0.80%	1,898		23.063588		43,775	1.30%	8.44	%
2003	0.80%	3,028		21.268673		64,402	1.91%	15.35	%
Neuberger Berman AMT – Fasciano Portfolio – S Class Shares
2007	0.80%	514		14.792303		7,603	0.00%	-0.29	%
2006	0.80%	2,652		14.835360		39,343	0.00%	4.42	%
2005	0.80%	1,526		14.207958		21,681	0.00%	2.08	%
2004	0.80%	3,644		13.918505		50,719	0.00%	10.99	%
2003	0.80%	854		12.540843		10,710	0.00%	25.41	%   05/01/03
Neuberger Berman AMT – Growth Portfolio- Class I
2007	0.80%	185,704		36.562250		6,789,756	0.00%	21.71	%
2006	0.80%	262,710		30.039737		7,891,739	0.00%	13.16	%
2005	0.80%	370,758		26.545874		9,842,095	0.00%	12.60	%
2004	0.80%	519,352		23.576070		12,244,279	0.00%	15.67	%
2003	0.80%	637,363		20.381526		12,990,431	0.00%	30.35	%
Neuberger Berman AMT – Guardian Portfolio – I Class Shares
2007	0.80%	47,724		14.696621		701,382	0.26%	6.53	%
2006	0.80%	73,922		13.796076		1,019,834	0.67%	12.48	%
2005	0.80%	88,548		12.265806		1,086,113	0.14%	7.53	%
2004	0.80%	121,580		11.406874		1,386,848	0.12%	14.89	%
2003	0.80%	143,460		9.928356		1,424,322	0.84%	30.71	%
Neuberger Berman AMT – International Portfolio – Class S
2007	0.80%	8,240		14.656417		120,769	1.68%	2.39	%
2006	0.80%	8,786		14.314811		125,770	0.00%	22.47	%
2005	0.80%	58,070		11.688169		678,732	0.22%	16.88	%   05/02/05
Neuberger Berman AMT – Mid-Cap Growth Portfolio – Class S
2007	0.80%	6,654		21.854333		145,419	0.00%	21.22	%
2006	0.80%	11,910		18.028719		214,722	0.00%	13.56	%
2005	0.80%	9,044		15.875842		143,581	0.00%	12.52	%
2004	0.80%	11,620		14.108984		163,946	0.00%	15.11	%
2003	0.80%	17,581		12.256991		215,490	0.00%	22.57	%   05/01/03
Neuberger Berman AMT – Partners Portfolio- Class I
2007	0.80%	193,268		40.603834		7,847,422	0.64%	8.46	%
2006	0.80%	317,204		37.436671		11,875,062	0.71%	11.35	%
2005	0.80%	450,896		33.621038		15,159,592	1.02%	17.11	%
2004	0.80%	534,216		28.709463		15,337,054	0.01%	18.03	%
2003	0.80%	637,464		24.324378		15,505,915	0.00%	34.01	%
Neuberger Berman AMT – Regency Portfolio – Class S
2007	0.80%	1,678		13.051065		21,900	0.66%	2.23	%
2006	0.80%	2,974		12.766616		37,968	0.44%	10.05	%
2005	0.80%	2,398		11.600355		27,818	0.00%	16.00	%   05/02/05
Neuberger Berman AMT – Socially Responsive Portfolio Class I
2007	0.80%	5,562		17.656802		98,207	0.09%	6.75	%
2006	0.80%	9,890		16.540130		163,582	0.17%	12.80	%
2005	0.80%	7,910		14.663357		115,987	0.00%	6.01	%
2004	0.80%	18,504		13.832310		255,953	0.00%	12.38	%
2003	0.80%	3,251		12.308850		40,016	0.00%	23.09	%   05/01/03
Oppenheimer VAF – Balanced Fund – Non-Service Shares
2007	0.80%	85,350		37.948682		3,238,920	2.57%	2.96	%
2006	0.80%	146,968		36.859294		5,417,137	2.13%	10.26	%
2005	0.80%	211,716		33.428671		7,077,385	1.76%	3.06	%
2004	0.80%	325,990		32.435047		10,573,501	1.01%	9.22	%
2003	0.80%	378,776		29.695890		11,248,090	2.82%	23.96	%
Oppenheimer VAF – Capital Appreciation Fund – Non-Service Shares
2007	0.80%	209,154		19.607337		4,100,953	0.23%	13.23	%
2006	0.80%	329,602		17.315647		5,707,272	0.38%	7.09	%
2005	0.80%	488,450		16.169181		7,897,836	0.93%	4.26	%
2004	0.80%	653,294		15.508004		10,131,286	0.33%	6.08	%
2003	0.80%	796,583		14.618573		11,644,907	0.38%	29.90	%

(Continued)

93

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Oppenheimer VAF – Core Bond Fund – Non-Service Shares
2007	0.80%	87,142	$	26.282217	$	2,290,285	5.26%	3.56	%
2006	0.80%	146,462		25.379927		3,717,195	5.20%	4.44	%
2005	0.80%	276,654		24.300441		6,722,814	5.34%	1.77	%
2004	0.80%	337,846		23.877339		8,066,863	4.80%	4.65	%
2003	0.80%	422,466		22.815950		9,638,963	5.67%	5.93	%
Oppenheimer VAF – Global Securities Fund – Class 3
2007	0.80%	160,562		14.773970		2,372,138	1.25%	5.49	%
2006	0.80%	235,194		14.005648		3,294,044	0.80%	16.75	%
2005	0.80%	156,170		11.995949		1,873,407	0.00%	19.96	%   05/02/05
Oppenheimer VAF – Global Securities Fund – Non-Service Shares
2007	0.80%	148,584		47.979344		7,128,963	1.37%	5.47	%
2006	0.80%	314,678		45.492106		14,315,365	1.04%	16.76	%
2005	0.80%	519,226		38.963173		20,230,692	1.07%	13.40	%
2004	0.80%	723,504		34.359210		24,859,026	1.25%	18.21	%
2003	0.80%	941,453		29.065271		27,363,587	0.76%	41.88	%
Oppenheimer VAF – High Income Fund – Class 3
2007	0.80%	2,712		9.609476		26,061	0.00%	-3.91	%   05/01/07
Oppenheimer VAF – High Income Fund – Non-Service Shares
2007	0.80%	7,928		13.127703		104,076	6.11%	-0.90	%
2006	0.80%	17,852		13.247178		236,489	6.97%	8.55	%
2005	0.80%	20,712		12.203356		252,756	6.75%	1.50	%
2004	0.80%	30,734		12.022940		369,513	4.23%	8.10	%
2003	0.80%	12,557		11.122220		139,662	0.00%	11.22	%   05/01/03
Oppenheimer VAF – Main Street Small Cap Fund® – Non-Service Shares
2007	0.80%	14,068		19.926143		280,321	0.32%	-2.00	%
2006	0.80%	24,146		20.333041		490,962	0.14%	14.08	%
2005	0.80%	28,068		17.822891		500,253	0.00%	9.05	%
2004	0.80%	26,984		16.344185		441,031	0.00%	18.47	%
2003	0.80%	26,396		13.796198		364,164	0.00%	37.96	%   05/01/03
Oppenheimer VAF – Main Street® – Non-Service Shares
2007	0.80%	29,480		10.968850		323,362	1.00%	3.59	%
2006	0.80%	57,418		10.588991		607,999	1.11%	14.11	%
2005	0.80%	92,862		9.279543		861,717	1.25%	5.13	%
2004	0.80%	97,760		8.826404		862,869	0.84%	8.59	%
2003	0.80%	114,284		8.128407		928,947	0.90%	25.71	%
Oppenheimer VAF – Mid Cap Fund – Non-Service Shares
2007	0.80%	67,290		6.755828		454,600	0.00%	5.48	%
2006	0.80%	125,750		6.404804		805,404	0.00%	2.14	%
2005	0.80%	203,896		6.270767		1,278,584	0.00%	11.43	%
2004	0.80%	265,960		5.627305		1,496,638	0.00%	18.82	%
2003	0.80%	315,600		4.735882		1,494,644	0.00%	24.59	%
Putnam VT – Growth and Income Fund – IB Shares
2007	0.80%	1,852		15.242345		28,229	1.31%	-6.79	%
2006	0.80%	2,546		16.352963		41,635	1.14%	14.99	%
2005	0.80%	6,136		14.221232		87,261	1.56%	4.39	%
2004	0.80%	3,926		13.622923		53,484	1.66%	10.23	%
2003	0.80%	1,210		12.359054		14,954	0.00%	23.59	%   05/01/03
Putnam VT – International Equity Fund – IB Shares
2007	0.80%	5,836		22.247335		129,835	2.65%	7.50	%
2006	0.80%	9,818		20.695424		203,188	0.44%	26.70	%
2005	0.80%	18,032		16.333628		294,528	1.11%	11.31	%
2004	0.80%	8,052		14.674512		118,159	1.61%	15.27	%
2003	0.80%	4,931		12.730633		62,775	0.00%	27.31	%   05/01/03
Putnam VT – Voyager Fund – IB Shares
2007	0.80%	1,028		14.103871		14,499	0.00%	4.68	%
2006	0.80%	2,010		13.473959		27,083	0.13%	4.60	%
2005	0.80%	2,700		12.881691		34,781	0.60%	4.85	%
2004	0.80%	1,378		12.285483		16,929	0.19%	4.20	%
2003	0.80%	1,238		11.790763		14,597	0.00%	17.91	%   05/01/03

(Continued)

94

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
T. Rowe Price Blue Chip Growth Portfolio – II
2007	0.80%	4,272	$	13.621873	$	58,193	0.12%	11.59	%
2006	0.80%	9,592		12.207295		117,092	0.24%	8.46	%
2005	0.80%	17,726		11.255124		199,508	0.29%	12.55	%   05/02/05
T. Rowe Price Equity Income Portfolio – II
2007	0.80%	25,522		12.728449		324,855	1.53%	2.20	%
2006	0.80%	36,012		12.453914		448,490	1.59%	17.70	%
2005	0.80%	21,876		10.580627		231,462	1.20%	5.81	%   05/02/05
T. Rowe Price Limited Term Bond Portfolio – Class II
2007	0.80%	1,904		10.851378		20,661	3.91%	4.38	%
2006	0.80%	4,952		10.395898		51,480	3.80%	3.20	%
2005	0.80%	2,888		10.073971		29,094	1.39%	0.74	%   05/02/05
The Dreyfus Socially Responsible Growth Fund, Inc. – Initial Shares
2007	0.80%	147,566		27.387135		4,041,410	0.53%	6.92	%
2006	0.80%	216,438		25.614125		5,543,870	0.11%	8.33	%
2005	0.80%	285,024		23.643910		6,739,082	0.00%	2.79	%
2004	0.80%	333,044		23.001657		7,660,564	0.38%	5.36	%
2003	0.80%	403,682		21.830604		8,812,622	0.11%	25.00	%
Turner GVIT Growth Focus Fund – Class I
2003	0.80%	103,819		3.251119		337,528	0.00%	49.76	%
Van Eck Worldwide Insurance Trust – Bond Fund – Initial Class
2007	0.80%	24,290		22.571765		548,268	5.77%	8.83	%
2006	0.80%	42,580		20.739979		883,108	8.51%	5.63	%
2005	0.80%	64,726		19.633767		1,270,815	7.55%	-3.80	%
2004	0.80%	94,458		20.409871		1,927,876	8.78%	8.28	%
2003	0.80%	159,535		18.848928		3,007,064	1.75%	17.22	%
Van Eck Worldwide Insurance Trust – Emerging Markets Fund – Initial Class
2007	0.80%	93,500		29.341648		2,743,444	0.43%	36.51	%
2006	0.80%	204,428		21.493674		4,393,909	0.60%	38.38	%
2005	0.80%	293,746		15.531958		4,562,451	0.73%	30.95	%
2004	0.80%	322,338		11.861162		3,823,303	0.59%	24.89	%
2003	0.80%	401,918		9.497431		3,817,188	0.11%	52.96	%
Van Eck Worldwide Insurance Trust – Hard Assets Fund – Initial Class
2007	0.80%	41,152		65.808830		2,708,165	0.11%	44.19	%
2006	0.80%	71,458		45.639544		3,261,311	0.07%	23.50	%
2005	0.80%	119,090		36.954214		4,400,877	0.30%	50.47	%
2004	0.80%	134,666		24.559747		3,307,363	0.37%	23.24	%
2003	0.80%	173,612		19.968789		3,466,821	0.48%	43.92	%
Van Kampen UIF – Core Plus Fixed Income Portfolio – Class I
2007	0.80%	10,704		11.729400		125,551	3.05%	4.61	%
2006	0.80%	15,064		11.212678		168,908	3.94%	2.91	%
2005	0.80%	22,076		10.895944		240,539	3.62%	3.39	%
2004	0.80%	15,460		10.539104		162,935	4.78%	3.54	%
2003	0.80%	2,958		10.179170		30,110	0.00%	1.79	%   05/01/03
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I
2007	0.80%	20,760		21.010045		436,169	7.41%	5.68	%
2006	0.80%	31,246		19.881064		621,204	7.72%	9.93	%
2005	0.80%	68,904		18.085748		1,246,180	7.52%	11.36	%
2004	0.80%	74,670		16.240956		1,212,712	6.41%	9.19	%
2003	0.80%	113,201		14.874690		1,683,830	0.00%	26.85	%
Van Kampen UIF – U.S. Real Estate Portfolio – Class I
2007	0.80%	84,232		50.130463		4,222,589	1.10%	-17.74	%
2006	0.80%	195,750		60.938109		11,928,635	1.08%	36.95	%
2005	0.80%	267,504		44.496942		11,903,110	1.22%	16.12	%
2004	0.80%	332,014		38.319214		12,722,516	1.55%	35.31	%
2003	0.80%	336,013		28.319843		9,515,835	0.00%	36.42	%
Wells Fargo AVT – Discovery FundSM
2007	0.80%	44,382		44.472235		1,973,767	0.00%	21.34	%
2006	0.80%	70,852		36.649699		2,596,704	0.00%	13.73	%
2005	0.80%	130,268		32.224282		4,197,793	0.00%	7.41	%
2004	0.80%	194,396		30.000581		5,831,993	0.00%	14.80	%
2003	0.80%	240,474		26.133664		6,284,467	0.00%	38.32	%

(Continued)

95

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Wells Fargo AVT – Opportunity FundSM
2007	0.80%	145,372	$	59.639193	$	8,669,869	0.61%	5.78	%
2006	0.80%	232,092		56.380823		13,085,538	0.00%	11.33	%
2005	0.80%	373,488		50.644296		18,915,037	0.00%	7.03	%
2004	0.80%	515,136		47.318990		24,375,715	0.00%	17.28	%
2003	0.80%	690,716		40.347502		27,868,665	0.07%	35.92	%
Single Premium contracts issued on or after April 16, 1990 (policy years 11 and thereafter)
American Century VP – Balanced Fund – Class I
2007	1.00%	38,914		12.269595		477,459	2.12%	3.89	%
2006	1.00%	44,838		11.810656		529,566	1.93%	8.53	%
2005	1.00%	52,040		10.882231		566,311	1.83%	3.89	%
American Century VP – Capital Appreciation Fund – Class I
2007	1.00%	220,292		11.894815		2,620,333	0.00%	44.35	%
2006	1.00%	149,970		8.240477		1,235,824	0.00%	16.06	%
2005	1.00%	171,146		7.100441		1,215,212	0.00%	20.85	%
American Century VP – Income & Growth Fund – Class I
2007	1.00%	14,802		11.429189		169,175	1.88%	-1.07	%
2006	1.00%	24,302		11.552475		280,748	1.88%	15.93	%
2005	1.00%	20,504		9.965424		204,331	2.03%	3.59	%
American Century VP – International Fund – Class I
2007	1.00%	79,918		11.883894		949,737	0.72%	16.88	%
2006	1.00%	60,986		10.167970		620,104	1.65%	23.79	%
2005	1.00%	61,088		8.214210		501,790	1.27%	12.13	%
American Century VP – Ultra® Fund – Class I
2007	1.00%	2,778		12.555821		34,880	0.00%	19.81	%
2006	1.00%	1,340		10.480144		14,043	0.00%	-4.24	%
2005	1.00%	5,288		10.943695		57,870	0.00%	1.15	%
American Century VP – Value Fund – Class I
2007	1.00%	72,664		18.067598		1,312,864	1.65%	-6.09	%
2006	1.00%	83,020		19.238731		1,597,199	1.39%	17.48	%
2005	1.00%	71,670		16.376728		1,173,720	0.88%	3.99	%
Credit Suisse Trust – Global Small Cap Portfolio
2007	1.00%	8,982		6.923255		62,185	0.00%	-4.92	%
2006	1.00%	8,040		7.281318		58,542	0.00%	12.08	%
2005	1.00%	3,714		6.496475		24,128	0.00%	14.99	%
Credit Suisse Trust – International Focus Portfolio
2007	1.00%	39,182		12.900878		505,482	1.08%	15.43	%
2006	1.00%	25,416		11.176387		284,059	1.03%	17.48	%
2005	1.00%	15,960		9.513742		151,839	0.91%	16.27	%
Credit Suisse Trust – Small Cap Core I Portfolio
2007	1.00%	65,396		7.317026		478,504	0.00%	-1.83	%
2006	1.00%	51,800		7.453113		386,071	0.00%	3.73	%
2005	1.00%	41,474		7.185242		298,001	0.00%	-3.65	%
Dreyfus IP – Small Cap Stock Index Portfolio – Service Shares
2007	1.00%	18,706		14.844030		277,672	0.37%	-1.65	%
2006	1.00%	20,468		15.092865		308,921	0.36%	13.28	%
2005	1.00%	15,334		13.324009		204,310	0.00%	6.17	%
Dreyfus Stock Index Fund, Inc. – Initial Shares
2007	1.00%	340,954		10.560744		3,600,728	1.70%	4.20	%
2006	1.00%	377,588		10.134844		3,826,795	1.65%	14.35	%
2005	1.00%	344,792		8.862854		3,055,841	1.60%	3.65	%
Dreyfus VIF – Appreciation Portfolio – Initial Shares
2007	1.00%	78,734		11.460137		902,302	1.61%	6.06	%
2006	1.00%	77,230		10.805247		834,489	1.49%	15.32	%
2005	1.00%	21,248		9.369677		199,087	0.02%	3.34	%
Dreyfus VIF – Growth and Income Portfolio – Initial Shares
2007	1.00%	16,816		11.118706		186,972	0.76%	7.36	%
2006	1.00%	22,804		10.356384		236,167	0.77%	13.38	%
2005	1.00%	23,964		9.134532		218,900	1.34%	2.33	%

(Continued)

96

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit     Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Federated IS – Quality Bond Fund II – Primary Shares
2007	1.00%	32,494	$	12.283540	$	399,141	4.97%	4.33	%
2006	1.00%	29,734		11.773803		350,082	3.43%	3.12	%
2005	1.00%	4,004		11.417503		45,716	3.65%	0.29	%
Fidelity® VIP – Equity-Income Portfolio – Initial Class
2007	1.00%	463,760		14.336823		6,648,845	1.77%	0.51	%
2006	1.00%	502,702		14.263392		7,170,236	3.30%	19.00	%
2005	1.00%	537,298		11.985917		6,440,009	1.64%	4.81	%
Fidelity® VIP – Growth Portfolio – Initial Class
2007	1.00%	773,552		9.252332		7,157,160	0.82%	25.69	%
2006	1.00%	747,634		7.360951		5,503,297	0.40%	5.79	%
2005	1.00%	746,748		6.958097		5,195,945	0.51%	4.75	%
Fidelity® VIP – High Income Portfolio – Initial Class
2007	1.00%	145,894		11.937443		1,741,601	7.41%	1.76	%
2006	1.00%	136,954		11.731213		1,606,637	7.80%	10.13	%
2005	1.00%	126,486		10.651851		1,347,310	16.14%	1.68	%
Fidelity® VIP – Overseas Portfolio – Initial Class
2007	1.00%	169,320		14.425299		2,442,492	3.29%	16.14	%
2006	1.00%	180,844		12.420750		2,246,218	0.91%	16.91	%
2005	1.00%	162,770		10.624371		1,729,329	0.71%	17.87	%
Fidelity® VIP II – Asset Manager Portfolio – Initial Class
2007	1.00%	229,524		12.562122		2,883,308	6.08%	14.35	%
2006	1.00%	252,802		10.985811		2,777,235	2.71%	6.25	%
2005	1.00%	287,746		10.339381		2,975,116	2.76%	3.01	%
Fidelity® VIP II – Contrafund® Portfolio – Initial Class
2007	1.00%	346,744		15.752271		5,462,005	0.93%	16.42	%
2006	1.00%	364,854		13.531021		4,936,847	1.27%	10.61	%
2005	1.00%	210,686		12.233291		2,577,383	0.29%	15.78	%
Fidelity® VIP III – Growth Opportunities Portfolio – Initial Class
2007	1.00%	12,236		10.892121		133,276	0.00%	21.95	%
2006	1.00%	10,970		8.931581		97,979	0.69%	4.41	%
2005	1.00%	11,798		8.554456		100,925	0.95%	7.81	%
Fidelity® VIP III – Value Strategies Portfolio – Service Class
2007	1.00%	12,228		16.059906		196,381	0.83%	4.54	%
2006	1.00%	14,346		15.361961		220,383	0.41%	15.04	%
2005	1.00%	11,298		13.353090		150,863	0.00%	1.54	%
Gartmore GVIT – Small Cap Growth Fund: Class I – Intial Funding by Depositor
2006	1.00%	24,648		7.684584		189,410	0.00%	2.18	%
2005	1.00%	9,740		7.520431		73,249	0.00%	7.02	%
Janus Aspen Series – Forty Portfolio – Service Shares
2007	1.00%	22,756		12.002478		273,128	0.19%	35.27	%
2006	1.00%	9,930		8.873089		88,110	0.14%	8.03	%
2005	1.00%	8,522		8.213276		69,994	0.01%	11.44	%
Janus Aspen Series – Global Technology Portfolio – Service Shares
2007	1.00%	21,732		5.254782		114,197	0.37%	20.48	%
2006	1.00%	17,218		4.361506		75,096	0.00%	6.76	%
2005	1.00%	17,522		4.085406		71,584	0.00%	10.44	%
Janus Aspen Series – International Growth Portfolio – Service Shares
2007	1.00%	47,972		18.208982		873,521	0.43%	26.74	%
2006	1.00%	109,880		14.367390		1,578,689	1.92%	45.17	%
2005	1.00%	35,600		9.896611		352,319	1.14%	30.63	%
Lehman Brothers AMT – Short Duration Bond Portfolio – I Class
2007	1.00%	47,540		12.476258		593,121	2.65%	3.72	%
2006	1.00%	58,744		12.028394		706,596	3.06%	3.17	%
2005	1.00%	47,674		11.659063		555,834	2.61%	0.44	%
Nationwide VIT – Gartmore Emerging Markets Fund – Class I
2007	1.00%	47,852		33.798406		1,617,321	0.71%	44.12	%
2006	1.00%	29,436		23.450961		690,302	0.72%	35.36	%
2005	1.00%	19,494		17.324605		337,726	0.61%	31.32	%

(Continued)

97

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit     Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Nationwide VIT – Gartmore Global Utilities Fund – Class I
2007	1.00%	20,120	$	23.317091	$	469,140	2.36%	19.23	%
2006	1.00%	38,254		19.556346		748,108	2.82%	36.20	%
2005	1.00%	8,262		14.358831		118,633	2.16%	5.33	%
Nationwide VIT – Gartmore International Growth Fund – Class I
2007	1.00%	73,628		15.966923		1,175,613	0.38%	25.87	%
2006	1.00%	37,946		12.684823		481,338	0.78%	31.65	%
2005	1.00%	24,308		9.635544		234,221	1.03%	28.92	%
Nationwide VIT – Global Financial Services Fund – Class I
2007	1.00%	5,350		18.540690		99,193	3.13%	-2.04	%
2006	1.00%	5,656		18.927318		107,053	1.89%	19.13	%
2005	1.00%	5,612		15.888310		89,165	2.00%	10.05	%
Nationwide VIT – Global Health Sciences Fund – Class I
2007	1.00%	14,292		14.643631		209,287	0.08%	12.03	%
2006	1.00%	17,932		13.071309		234,395	0.00%	1.69	%
2005	1.00%	19,108		12.854278		245,620	0.00%	7.36	%
Nationwide VIT – Global Technology and Communications Fund – Class I
2007	1.00%	39,948		3.833761		153,151	0.00%	18.89	%
2006	1.00%	27,680		3.224567		89,256	0.00%	10.07	%
2005	1.00%	15,226		2.929673		44,607	0.00%	-1.50	%
Nationwide VIT – Government Bond Fund – Class I
2007	1.00%	140,436		14.004670		1,966,760	4.45%	6.09	%
2006	1.00%	127,692		13.201192		1,685,687	4.11%	2.32	%
2005	1.00%	119,678		12.902408		1,544,134	3.64%	2.24	%
Nationwide VIT – Growth Fund – Class I
2007	1.00%	49,378		6.879197		339,681	0.17%	18.35	%
2006	1.00%	55,020		5.812653		319,812	0.05%	5.11	%
2005	1.00%	38,158		5.529847		211,008	0.08%	5.44	%
Nationwide VIT – Investor Destinations Aggressive Fund – Class II
2007	1.00%	328		15.779509		5,176	2.03%	4.90	%
2006	1.00%	290		15.042687		4,362	2.11%	15.71	%
Nationwide VIT – Investor Destinations Conservative Fund – Class II
2007	1.00%	5,692		12.362022		70,365	3.97%	4.33	%
2006	1.00%	5,798		11.849304		68,702	2.89%	5.11	%
2005	1.00%	2,858		11.273191		32,219	2.78%	2.28	%
Nationwide VIT – Investor Destinations Moderate Fund – Class II
2007	1.00%	45,290		14.039145		635,833	2.62%	4.60	%
2006	1.00%	41,320		13.421439		554,574	2.50%	10.25	%
2005	1.00%	36,840		12.173861		448,485	2.36%	4.30	%
Nationwide VIT – Investor Destinations Moderately Aggressive Fund – Class II
2007	1.00%	38,380		15.130768		580,719	2.25%	5.09	%
2006	1.00%	23,212		14.398126		334,209	2.27%	13.40	%
2005	1.00%	1,550		12.696312		19,679	2.14%	6.01	%
Nationwide VIT – Investor Destinations Moderately Conservative Fund – Class II
2007	1.00%	31,082		13.277544		412,693	2.92%	4.80	%
2006	1.00%	77,310		12.669367		979,469	2.76%	7.35	%
2005	1.00%	6,244		11.802269		73,693	2.75%	3.45	%
Nationwide VIT – Mid Cap Growth Fund – Class I
2007	1.00%	27,266		6.587921		179,626	0.00%	7.92	%
2006	1.00%	30,726		6.104214		187,558	0.00%	8.82	%
2005	1.00%	24,834		5.609609		139,309	0.00%	8.65	%
Nationwide VIT – Mid Cap Index Fund – Class I
2007	1.00%	34,096		15.323833		522,481	1.35%	6.48	%
2006	1.00%	41,104		14.390791		591,519	1.13%	8.80	%
2005	1.00%	43,640		13.226964		577,225	1.03%	10.99	%
Nationwide VIT – Money Market Fund – Class I
2007	1.00%	419,234		11.293879		4,734,778	4.64%	3.74	%
2006	1.00%	495,002		10.886811		5,388,993	4.49%	3.49	%
2005	1.00%	408,430		10.519895		4,296,641	2.64%	1.64	%
Nationwide VIT – Multi-Manager Small Cap Growth Fund – Class I
2007	1.00%	26,118		8.349478		218,072	0.00%	8.65	%

(Continued)

98

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit     Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Nationwide VIT – Multi-Manager Small Cap Value Fund – Class I
2007	1.00%	43,030	$	17.444838	$	750,651	1.10%	-7.83	%
2006	1.00%	53,404		18.925926		1,010,720	0.43%	16.13	%
2005	1.00%	105,618		16.297231		1,721,281	0.06%	2.05	%
Nationwide VIT – Multi-Manager Small Company Fund – Class I
2007	1.00%	38,152		15.198601		579,857	0.09%	1.11	%
2006	1.00%	49,560		15.031685		744,970	0.11%	10.93	%
2005	1.00%	40,176		13.551021		544,426	0.00%	11.20	%
Nationwide VIT – Nationwide Fund – Class I
2007	1.00%	149,962		11.797304		1,769,147	1.05%	7.10	%
2006	1.00%	167,948		11.015308		1,849,999	1.08%	12.50	%
2005	1.00%	153,820		9.791361		1,506,107	0.91%	6.38	%
Nationwide VIT – Nationwide Leaders Fund – Class I
2007	1.00%	1,218		16.988891		20,692	1.15%	10.44	%
2006	1.00%	2,084		15.382337		32,057	0.97%	14.89	%
2005	1.00%	3,916		13.388228		52,428	1.54%	9.22	%
Nationwide VIT – U.S. Growth Leaders Fund – Class I
2007	1.00%	2,584		18.177321		46,970	0.00%	21.26	%
2006	1.00%	9,994		14.990265		149,813	0.25%	-1.28	%
2005	1.00%	13,390		15.184319		203,318	0.00%	10.85	%
Nationwide VIT – Van Kampen Multi Sector Bond Fund – Class I
2007	1.00%	17,946		14.240475		255,560	4.10%	3.58	%
2006	1.00%	14,786		13.748525		203,286	4.42%	3.80	%
2005	1.00%	2,210		13.245485		29,273	3.89%	1.17	%
Neuberger Berman AMT – Growth Portfolio- Class I
2007	1.00%	181,806		7.762827		1,411,329	0.00%	21.47	%
2006	1.00%	200,916		6.390816		1,284,017	0.00%	12.94	%
2005	1.00%	189,716		5.658791		1,073,563	0.00%	12.37	%
Neuberger Berman AMT – Guardian Portfolio – I Class Shares
2007	1.00%	4,748		12.957908		61,524	0.26%	6.31	%
2006	1.00%	7,572		12.188388		92,290	0.67%	12.25	%
2005	1.00%	2,788		10.858076		30,272	0.14%	7.32	%
Neuberger Berman AMT – Partners Portfolio- Class I
2007	1.00%	86,432		16.050889		1,387,310	0.64%	8.24	%
2006	1.00%	89,328		14.828703		1,324,618	0.71%	11.13	%
2005	1.00%	78,466		13.343910		1,047,043	1.02%	16.87	%
Oppenheimer VAF – Balanced Fund – Non-Service Shares
2007	1.00%	129,370		13.967806		1,807,015	2.57%	2.75	%
2006	1.00%	143,020		13.594148		1,944,235	2.13%	10.04	%
2005	1.00%	127,708		12.353496		1,577,640	1.76%	2.86	%
Oppenheimer VAF – Capital Appreciation Fund – Non-Service Shares
2007	1.00%	70,288		9.884979		694,795	0.23%	13.01	%
2006	1.00%	77,536		8.747201		678,223	0.38%	6.88	%
2005	1.00%	112,070		8.184351		917,220	0.93%	4.06	%
Oppenheimer VAF – Core Bond Fund – Non-Service Shares
2007	1.00%	51,906		14.189932		736,543	5.26%	3.35	%
2006	1.00%	50,010		13.730362		686,655	5.20%	4.23	%
2005	1.00%	32,080		13.172613		422,577	5.34%	1.57	%
Oppenheimer VAF – Global Securities Fund – Non-Service Shares
2007	1.00%	157,904		14.984363		2,366,091	1.37%	5.26	%
2006	1.00%	160,988		14.236174		2,291,853	1.04%	16.52	%
2005	1.00%	136,196		12.217371		1,663,957	1.07%	13.17	%
Oppenheimer VAF – Main Street® – Non-Service Shares
2007	1.00%	6,962		10.795993		75,162	1.00%	3.38	%
2006	1.00%	7,816		10.443096		81,623	1.11%	13.88	%
2005	1.00%	16,864		9.169966		154,642	1.25%	4.92	%
Oppenheimer VAF – Mid Cap Fund – Non-Service Shares
2007	1.00%	9,792		5.889904		57,674	0.00%	5.27	%
2006	1.00%	13,928		5.595113		77,929	0.00%	1.93	%
2005	1.00%	14,778		5.488955		81,116	0.00%	11.21	%

(Continued)

99

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit     Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
The Dreyfus Socially Responsible Growth Fund, Inc.– Initial Shares
2007	1.00%	20,698	$	7.293750	$	150,966	0.53%	6.71%
2006	1.00%	21,910		6.835295		149,761	0.11%	8.12%
2005	1.00%	20,360		6.322127		128,719	0.00%	2.59%
Van Eck Worldwide Insurance Trust – Bond Fund – Initial Class
2007	1.00%	53,936		16.500009		889,944	5.77%	8.61%
2006	1.00%	42,236		15.191481		641,627	8.51%	5.42%
2005	1.00%	44,648		14.409920		643,374	7.55%	-3.99%
Van Eck Worldwide Insurance Trust – Emerging Markets Fund – Initial Class
2007	1.00%	36,120		33.537534		1,211,376	0.43%	36.24%
2006	1.00%	39,850		24.616702		980,976	0.60%	38.11%
2005	1.00%	33,638		17.824242		599,572	0.73%	30.69%
Van Eck Worldwide Insurance Trust – Hard Assets Fund – Initial Class
2007	1.00%	68,368		40.935533		2,798,681	0.11%	43.90%
2006	1.00%	62,902		28.446616		1,789,349	0.07%	23.26%
2005	1.00%	66,950		23.079126		1,545,147	0.30%	50.17%
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I
2007	1.00%	7,184		21.065858		151,337	7.41%	5.47%
2006	1.00%	3,962		19.973989		79,137	7.72%	9.71%
2005	1.00%	8,002		18.206549		145,689	7.52%	11.14%
Van Kampen UIF – U.S.Real Estate Portfolio – Class I
2007	1.00%	39,508		26.129688		1,032,332	1.10%	-17.90%
2006	1.00%	73,408		31.826979		2,336,355	1.08%	36.68%
2005	1.00%	63,520		23.286362		1,479,150	1.22%	15.89%
Wells Fargo AVT – Discovery FundSM
2007	1.00%	25,612		19.579303		501,465	0.00%	21.10%
2006	1.00%	25,940		16.167820		419,393	0.00%	13.51%
2005	1.00%	30,292		14.243955		431,478	0.00%	7.20%
Wells Fargo AVT – Opportunity FundSM
2007	1.00%	146,392		13.806187		2,021,115	0.61%	5.57%
2006	1.00%	160,034		13.078165		2,092,951	0.00%	11.11%
2005	1.00%	179,860		11.770963		2,117,125	0.00%	6.81%
Single Premium contracts issued on or after April 16, 1990
American Century VP – Balanced Fund – Class I
2007	1.30%	8		24.593469		197	2.12%	3.57%
2006	1.30%	990		23.745073		23,508	1.93%	8.21%
2005	1.30%	2,878		21.944037		63,155	1.83%	3.58%
2004	1.30%	35,358		21.184881		749,055	1.68%	8.36%
2003	1.30%	36,906		19.550372		721,526	2.53%	17.92%
American Century VP – Capital Appreciation Fund – Class I
2007	1.30%	2		36.460250		73	0.00%	43.91%
2006	1.30%	556		25.335087		14,086	0.00%	15.71%
2005	1.30%	6,016		21.895512		131,723	0.00%	20.49%
2004	1.30%	66,996		18.171733		1,217,433	0.00%	6.19%
2003	1.30%	85,342		17.111726		1,460,349	0.00%	18.92%
American Century VP – Income & Growth Fund – Class I
2005	1.30%	8,246		11.784027		97,171	2.03%	3.28%
2004	1.30%	31,276		11.409408		356,841	1.44%	11.53%
2003	1.30%	21,876		10.229575		223,782	1.30%	27.68%
American Century VP – International Fund – Class I
2007	1.30%	354		26.406669		9,348	0.72%	16.52%
2006	1.30%	6,172		22.662010		139,870	1.65%	23.42%
2005	1.30%	14,464		18.362361		265,593	1.27%	11.80%
2004	1.30%	55,662		16.424915		914,244	0.58%	13.44%
2003	1.30%	52,719		14.478934		763,315	0.75%	22.90%
American Century VP – Ultra®Fund – Class I
2004	1.30%	8,076		10.732849		86,678	0.00%	9.25%
2003	1.30%	1,710		9.824442		16,800	0.00%	23.29%

(Continued)

100

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
American Century VP – Value Fund – Class I
2005	1.30%	16,188	$	21.324425	$	345,200	0.88%	3.68%
2004	1.30%	92,778		20.567340		1,908,197	1.01%	12.86%
2003	1.30%	85,452		18.224277		1,557,301	1.09%	27.29%
Credit Suisse Trust – Global Small Cap Portfolio
2005	1.30%	2,682		13.753775		36,888	0.00%	14.65%
2004	1.30%	4,110		11.996474		49,306	0.00%	16.47%
2003	1.30%	10,616		10.300420		109,349	0.00%	45.75%
Credit Suisse Trust – International Focus Portfolio
2006	1.30%	10,164		15.763156		160,217	1.03%	17.13%
2005	1.30%	24,184		13.458367		325,477	0.91%	15.93%
2004	1.30%	41,378		11.609376		480,373	0.99%	13.26%
2003	1.30%	33,394		10.250133		342,293	0.49%	31.37%
Credit Suisse Trust – Small Cap Core I Portfolio
2006	1.30%	7,148		17.853550		127,617	0.00%	3.42%
2005	1.30%	18,546		17.263500		320,169	0.00%	-3.93%
2004	1.30%	42,546		17.970297		764,564	0.00%	9.44%
2003	1.30%	49,309		16.420586		809,683	0.00%	46.63%
Dreyfus IP – Small Cap Stock Index Portfolio – Service Shares
2005	1.30%	5,586		13.178346		73,614	0.00%	5.85%
2004	1.30%	21,594		12.449758		268,840	0.50%	20.31%
2003	1.30%	14,581		10.347973		150,884	0.33%	36.00%
Dreyfus Stock Index Fund, Inc.– Initial Shares
2007	1.30%	6		32.822912		197	1.70%	3.89%2
2006	1.30%	13,440		31.594380		424,628	1.65%	14.01%
2005	1.30%	43,062		27.711836		1,193,327	1.60%	3.34%
2004	1.30%	166,174		26.815353		4,456,014	1.80%	9.21%
2003	1.30%	181,645		24.553549		4,460,029	1.51%	26.71%
Dreyfus VIF – Appreciation Portfolio – Initial Shares
2006	1.30%	10,234		15.282356		156,400	1.49%	14.98%
2005	1.30%	52,560		13.291662		698,610	0.02%	3.03%
2004	1.30%	69,410		12.900329		895,412	1.63%	3.69%
2003	1.30%	71,606		12.441321		890,873	1.40%	19.61%
Dreyfus VIF – Growth and Income Portfolio – Initial Shares
2005	1.30%	7,396		12.832801		94,911	1.34%	2.02%
2004	1.30%	20,464		12.578597		257,408	1.23%	6.08%
2003	1.30%	19,988		11.857652		237,011	0.84%	24.94%
Federated IS – Quality Bond Fund II – Primary Shares
2005	1.30%	296		11.292632		3,343	3.65%	-0.01%
2004	1.30%	5,244		11.293463		59,223	4.98%	2.28%
2003	1.30%	11,443		11.041537		126,348	3.93%	3.29%
Fidelity® VIP – Equity-Income Portfolio – Initial Class
2007	1.30%	6		51.725856		310	1.77%	0.21%
2006	1.30%	3,596		51.616411		185,613	3.30%	18.65%
2005	1.30%	27,500		43.504590		1,196,376	1.64%	4.50%
2004	1.30%	197,270		41.630375		8,212,424	1.56%	10.09%
2003	1.30%	228,092		37.815050		8,625,310	1.80%	28.65%
Fidelity® VIP – Growth Portfolio – Initial Class
2007	1.30%	144		49.269736		7,095	0.82%	25.32%
2006	1.30%	3,826		39.316236		150,424	0.40%	5.47%
2005	1.30%	34,904		37.275932		1,301,079	0.51%	4.44%
2004	1.30%	195,692		35.692511		6,984,739	0.27%	2.04%
2003	1.30%	224,376		34.977889		7,848,199	0.27%	31.13%
Fidelity® VIP – High Income Portfolio – Initial Class
2006	1.30%	9,972		30.387910		303,028	7.80%	9.80%
2005	1.30%	21,016		27.674631		581,610	16.14%	1.38%
2004	1.30%	106,760		27.298414		2,914,379	8.82%	8.18%
2003	1.30%	136,028		25.234771		3,432,635	5.94%	25.62%

(Continued)

101

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit     Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Fidelity® VIP – Overseas Portfolio – Initial Class
2007	1.30%	2	$	30.061976	$	60	3.29%	15.79%
2006	1.30%	782		25.962703		20,303	0.91%	16.56%
2005	1.30%	5,672		22.274316		126,340	0.71%	17.51%
2004	1.30%	95,424		18.954713		1,808,735	1.14%	12.17%
2003	1.30%	111,937		16.898456		1,891,562	0.83%	41.52%
Fidelity® VIP II – Asset Manager Portfolio – Initial Class
2007	1.30%	6		36.160198		217	6.08%	14.00%
2006	1.30%	654		31.718247		20,744	2.71%	5.93%
2005	1.30%	7,118		29.941319		213,122	2.76%	2.70%
2004	1.30%	121,996		29.152937		3,556,542	2.76%	4.11%
2003	1.30%	143,073		28.002882		4,006,456	3.62%	16.45%
Fidelity® VIP II – Contrafund® Portfolio – Initial Class
2007	1.30%	348		38.999532		13,572	0.93%	16.07%
2006	1.30%	3,016		33.601299		101,342	1.27%	10.28%
2005	1.30%	72,552		30.469674		2,210,636	0.29%	15.43%
2004	1.30%	167,594		26.396331		4,423,867	0.34%	13.99%
2003	1.30%	185,397		23.157613		4,293,352	0.46%	26.81%
Fidelity® VIP III – Growth Opportunities Portfolio – Initial Class
2005	1.30%	844		10.765183		9,086	0.95%	7.49%
2004	1.30%	18,258		10.015165		182,857	0.53%	5.81%
2003	1.30%	18,158		9.465516		171,875	0.74%	28.20%
Fidelity® VIP III – Value Strategies Portfolio – Service Class
2005	1.30%	1,814		13.207092		23,958	0.00%	1.23%
2004	1.30%	23,932		13.046144		312,220	0.00%	12.52%
2003	1.30%	40,013		11.594984		463,950	0.00%	55.76%
Gartmore GVIT – Small Cap Growth Fund: Class I – Intial Funding by Depositor
2005	1.30%	3,160		7.384553		23,335	0.00%	6.70%
2004	1.30%	27,028		6.920939		187,059	0.00%	11.95%
2003	1.30%	28,379		6.182099		175,442	0.00%	32.53%
Janus Aspen Series – Forty Portfolio – Service Shares
2005	1.30%	1,398		7.732522		10,810	0.01%	11.11%
2004	1.30%	10,144		6.959531		70,597	0.02%	16.44%
2003	1.30%	13,360		5.976684		79,848	0.25%	18.68%
Janus Aspen Series – Global Technology Portfolio – Service Shares
2004	1.30%	21,408		3.479325		74,485	0.00%	-0.73%
2003	1.30%	36,630		3.505015		128,389	0.00%	44.58%
Janus Aspen Series – International Growth Portfolio – Service Shares
2005	1.30%	5,076		8.846998		44,907	1.14%	30.24%
2004	1.30%	29,924		6.792762		203,267	0.83%	17.15%
2003	1.30%	53,588		5.798153		310,711	0.99%	32.80%
Lehman Brothers AMT – Short Duration Bond Portfolio – I Class
2006	1.30%	492		18.678278		9,190	3.06%	2.86%
2005	1.30%	3,662		18.158987		66,498	2.61%	0.14%
2004	1.30%	43,950		18.134220		796,999	3.64%	-0.52%
2003	1.30%	68,214		18.229469		1,243,505	4.41%	1.10%
Nationwide VIT – Gartmore Emerging Markets Fund – Class I
2005	1.30%	2,774		17.312824		48,026	0.61%	30.93%
2004	1.30%	13,996		13.222981		185,069	0.93%	19.18%
2003	1.30%	31,749		11.094534		352,240	0.66%	63.13%
Nationwide VIT – Gartmore Global Utilities Fund – Class I
2005	1.30%	4,350		14.201823		61,778	2.16%	5.02%
2004	1.30%	21,056		13.523265		284,746	1.92%	28.29%
2003	1.30%	6,218		10.541163		65,545	0.70%	22.45%
Nationwide VIT – Gartmore International Growth Fund – Class I
2005	1.30%	3,512		9.434995		33,136	1.03%	28.53%
2004	1.30%	15,442		7.340515		113,352	1.40%	12.72%
2003	1.30%	4,222		6.512199		27,495	0.00%	33.87%
Nationwide VIT – Global Financial Services Fund – Class I
2005	1.30%	238		15.714600		3,740	2.00%	9.72%
2004	1.30%	9,204		14.322458		131,824	1.45%	19.43%
2003	1.30%	8,059		11.992233		96,645	0.88%	39.63%

(Continued)

102

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit     Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Nationwide VIT – Global Health Sciences Fund – Class I
2005	1.30%	286	$	12.713706	$	3,636	0.00%	7.04%
2004	1.30%	21,374		11.877203		253,863	0.00%	6.47%
2003	1.30%	22,102		11.155813		246,566	0.00%	34.93%
Nationwide VIT – Global Technology and Communications Fund – Class I
2005	1.30%	2,224		2.967380		6,599	0.00%	-1.80%
2004	1.30%	29,678		3.021716		89,678	0.00%	2.97%
2003	1.30%	49,780		2.934687		146,089	0.00%	53.23%
Nationwide VIT – Government Bond Fund – Class I
2006	1.30%	7,562		25.368610		191,837	4.11%	2.01%
2005	1.30%	16,748		24.868713		416,501	3.64%	1.93%
2004	1.30%	87,934		24.397010		2,145,327	5.48%	1.93%
2003	1.30%	125,005		23.935432		2,992,049	3.14%	0.68%
Nationwide VIT – Growth Fund – Class I
2006	1.30%	932		17.584603		16,389	0.05%	4.80%
2005	1.30%	6,860		16.779162		115,105	0.08%	5.13%
2004	1.30%	20,390		15.960562		325,436	0.33%	6.76%
2003	1.30%	25,825		14.949958		386,083	0.02%	31.03%
Nationwide VIT – Investor Destinations Conservative Fund – Class II
2004	1.30%	2,914		10.925221		31,836	2.46%	3.30%
2003	1.30%	2,945		10.576130		31,147	2.37%	6.51%
Nationwide VIT – Investor Destinations Moderate Fund – Class II
2006	1.30%	2,822		13.224582		37,320	2.50%	9.92%
2005	1.30%	11,178		12.031239		134,485	2.36%	3.99%
2004	1.30%	35,746		11.569914		413,578	2.27%	8.12%
2003	1.30%	32,069		10.700865		343,166	2.06%	18.50%
Nationwide VIT – Investor Destinations Moderately Aggressive Fund – Class II
2005	1.30%	22,262		12.547596		279,335	2.14%	5.69%
2004	1.30%	24,178		11.871734		287,035	1.97%	10.65%
Nationwide VIT – Investor Destinations Moderately Conservative Fund – Class II
2005	1.30%	75,506		11.663995		880,702	2.75%	3.14%
2004	1.30%	78,358		11.308888		886,142	2.48%	5.78%
2003	1.30%	3,555		10.691448		38,008	2.34%	12.23%
Nationwide VIT – Mid Cap Growth Fund – Class I
2004	1.30%	19,586		5.442251		106,592	0.00%	13.85%
2003	1.30%	54,348		4.780255		259,797	0.00%	38.33%
Nationwide VIT – Mid Cap Index Fund – Class I
2006	1.30%	4,202		15.476230		65,031	1.13%	8.47%
2005	1.30%	15,760		14.267251		224,852	1.03%	10.66%
2004	1.30%	77,226		12.893433		995,708	0.54%	14.24%
2003	1.30%	76,418		11.286523		862,494	0.49%	32.91%
Nationwide VIT – Money Market Fund – Class I
2007	1.30%	252		15.923976		4,013	4.64%	3.42%
2006	1.30%	1,120		15.396940		17,245	4.49%	3.18%
2005	1.30%	69,288		14.923119		1,033,993	2.64%	1.34%
2004	1.30%	380,556		14.726229		5,604,155	0.78%	-0.50%
2003	1.30%	388,834		14.800105		5,754,784	0.63%	-0.68%
Nationwide VIT – Multi-Manager Small Cap Value Fund – Class I
2006	1.30%	1,840		22.711726		41,790	0.43%	15.78%
2005	1.30%	14,854		19.615792		291,373	0.06%	1.75%
2004	1.30%	109,740		19.279280		2,115,708	0.00%	15.78%
2003	1.30%	130,023		16.651092		2,165,025	0.00%	54.83%
Nationwide VIT – Multi-Manager Small Company Fund – Class I
2007	1.30%	392		37.083919		14,537	0.09%	0.81%
2006	1.30%	816		36.787497		30,019	0.11%	10.60%
2005	1.30%	6,916		33.263194		230,048	0.00%	10.87%
2004	1.30%	27,688		30.001771		830,689	0.00%	17.49%
2003	1.30%	40,659		25.536562		1,038,291	0.00%	39.19%

(Continued)

103

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit     Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Nationwide VIT – Nationwide Fund – Class I
2006	1.30%	314	$	40.292927	$	12,652	1.08%	12.16%
2005	1.30%	5,272		35.923101		189,387	0.91%	6.06%
2004	1.30%	50,156		33.871221		1,698,845	1.28%	8.33%
2003	1.30%	66,484		31.265566		2,078,660	0.56%	25.87%
Nationwide VIT – Nationwide Leaders Fund – Class I
2005	1.30%	1,590		13.241863		21,055	1.54%	8.89%
2004	1.30%	5,346		12.160621		65,011	0.52%	17.26%
2003	1.30%	3,455		10.370684		35,831	0.19%	23.77%
Nationwide VIT – U.S. Growth Leaders Fund – Class I
2005	1.30%	1,378		15.018298		20,695	0.00%	10.52%
2004	1.30%	11,128		13.588665		151,215	0.00%	10.96%
2003	1.30%	16,491		12.246750		201,961	0.00%	50.17%
Nationwide VIT – Van Kampen Multi Sector Bond Fund – Class I
2005	1.30%	2,220		13.288789		29,501	3.89%	0.86%
2004	1.30%	8,078		13.174974		106,427	4.85%	5.16%
2003	1.30%	10,621		12.528743		133,068	5.47%	10.67%
Neuberger Berman AMT – Growth Portfolio- Class I
2006	1.30%	1,860		28.970099		53,884	0.00%	12.60%
2005	1.30%	8,346		25.728636		214,731	0.00%	12.04%
2004	1.30%	58,460		22.964403		1,342,499	0.00%	15.10%
2003	1.30%	67,899		19.952228		1,354,736	0.00%	29.71%
Neuberger Berman AMT – Guardian Portfolio – I Class Shares
2004	1.30%	4,968		11.032769		54,811	0.12%	14.32%
2003	1.30%	6,729		9.650858		64,941	0.84%	30.06%
Neuberger Berman AMT – Partners Portfolio- Class I
2006	1.30%	190		35.184666		6,685	0.71%	10.80%
2005	1.30%	22,258		31.756491		706,836	1.02%	16.53%
2004	1.30%	35,560		27.252721		969,107	0.01%	17.44%
2003	1.30%	38,219		23.205843		886,904	0.00%	33.35%
Oppenheimer VAF – Balanced Fund – Non-Service Shares
2005	1.30%	8,748		32.399586		283,432	1.76%	2.55%
2004	1.30%	59,420		31.593672		1,877,296	1.01%	8.68%
2003	1.30%	66,415		29.070523		1,930,719	2.82%	23.34%
Oppenheimer VAF – Capital Appreciation Fund – Non-Service Shares
2006	1.30%	1,892		16.515549		31,247	0.38%	6.56%
2005	1.30%	10,204		15.499156		158,153	0.93%	3.75%
2004	1.30%	74,904		14.939657		1,119,040	0.33%	5.56%
2003	1.30%	87,490		14.153408		1,238,282	0.38%	29.25%
Oppenheimer VAF – Core Bond Fund – Non-Service Shares
2006	1.30%	952		25.434609		24,214	5.20%	3.92%
2005	1.30%	8,382		24.474528		205,145	5.34%	1.27%
2004	1.30%	31,218		24.168614		754,496	4.80%	4.13%
2003	1.30%	39,108		23.210049		907,699	5.67%	5.40%
Oppenheimer VAF – Global Securities Fund – Non-Service Shares
2007	1.30%	338		44.680582		15,102	1.37%	4.94%
2006	1.30%	3,734		42.577872		158,986	1.04%	16.18%
2005	1.30%	20,412		36.649419		748,088	1.07%	12.84%
2004	1.30%	74,314		32.480314		2,413,742	1.25%	17.62%
2003	1.30%	72,050		27.613518		1,989,554	0.76%	41.18%
Oppenheimer VAF – Main Street® – Non-Service Shares
2005	1.30%	2,664		9.020429		24,030	1.25%	4.61%
2004	1.30%	25,380		8.622799		218,847	0.84%	8.05%
2003	1.30%	16,358		7.980692		130,548	0.90%	25.08%
Oppenheimer VAF – Mid Cap Fund – Non-Service Shares
2006	1.30%	5,116		6.194874		31,693	0.00%	1.63%
2005	1.30%	10,562		6.095550		64,381	0.00%	10.88%
2004	1.30%	38,774		5.497394		213,156	0.00%	18.23%
2003	1.30%	27,365		4.649735		127,240	0.00%	23.97%

(Continued)

104

NATIONWIDE VLI SEPARATE ACCOUNT-2 (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
The Dreyfus Socially Responsible Growth Fund, Inc. – Initial Shares
2006	1.30%	430	$	23.974748	$	10,309	0.11%	7.79	%
2005	1.30%	1,602		22.241255		35,630	0.00%	2.28	%
2004	1.30%	9,240		21.745234		200,926	0.38%	4.84	%
2003	1.30%	11,971		20.741572		248,297	0.11%	24.38	%
Turner GVIT Growth Focus Fund – Class I
2003	1.30%	41,875		3.198637		133,943	0.00%	49.02	%
Van Eck Worldwide Insurance Trust – Bond Fund – Initial Class
2006	1.30%	710		20.988551		14,902	8.51%	5.11	%
2005	1.30%	1,402		19.968392		27,996	7.55%	-4.28	%
2004	1.30%	41,310		20.861514		861,789	8.78%	7.74	%
2003	1.30%	45,248		19.362563		876,117	1.75%	16.64	%
Van Eck Worldwide Insurance Trust – Emerging Markets Fund – Initial Class
2005	1.30%	9,088		14.846881		134,928	0.73%	30.30	%
2004	1.30%	55,514		11.394604		632,560	0.59%	24.27	%
2003	1.30%	41,241		9.169570		378,162	0.11%	52.20	%
Van Eck Worldwide Insurance Trust – Hard Assets Fund – Initial Class
2005	1.30%	11,812		32.040853		378,467	0.30%	49.72	%
2004	1.30%	60,654		21.400584		1,298,031	0.37%	22.63	%
2003	1.30%	52,868		17.487326		924,520	0.48%	43.21	%
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I
2005	1.30%	374		17.336446		6,484	7.52%	10.81	%
2004	1.30%	12,540		15.645892		196,199	6.41%	8.64	%
2003	1.30%	28,152		14.401515		405,431	0.00%	26.21	%
Van Kampen UIF – U.S. Real Estate Portfolio – Class I
2005	1.30%	7,386		42.223333		311,862	1.22%	15.54	%
2004	1.30%	39,270		36.542922		1,435,041	1.55%	34.63	%
2003	1.30%	45,256		27.142344		1,228,354	0.00%	35.74	%
Wells Fargo AVT – Discovery FundSM
2006	1.30%	468		34.057941		15,939	0.00%	13.17	%
2005	1.30%	2,946		30.095203		88,660	0.00%	6.88	%
2004	1.30%	20,844		28.158423		586,934	0.00%	14.22	%
2003	1.30%	22,400		24.651908		552,203	0.00%	37.63	%
Wells Fargo AVT – Opportunity FundSM
2006	1.30%	448		52.395225		23,473	0.00%	10.77	%
2005	1.30%	6,228		47.299447		294,581	0.00%	6.50	%
2004	1.30%	58,418		44.414552		2,594,609	0.00%	16.69	%
2003	1.30%	69,041		38.060714		2,627,750	0.07%	35.24	%
Contract Owners’ Equity Total By Year
2007					$	1,012,602,409
2006					$	980,827,120
2005					$	929,399,760
2004					$	915,627,476
2003					$	881,562,186

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

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

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

105

Report of Independent Registered Public Accounting Firm

The Board of Directors of Nationwide Life Insurance Company and

    Contract Owners of Nationwide VLI Separate Account-2:

We have audited the accompanying statement of assets, liabilities and contract owners’ equity of Nationwide VLI Separate Account-2 (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

106

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