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Platform of new innovative index annuity products emphasizes competitive growth potential

HOUSTON--March 11, 2008--American General Life Insurance Company (American General Life), a subsidiary of American International Group, Inc. (AIG), has announced the AIG Global Index(SM) Annuity Series. Two market-differentiating features of this series are:

  • A Global Multiple Index Account(SM) which is linked to the S&P 500(R), the Dow Jones EURO STOXX 50(R) and the Nikkei 225. At the end of each year, the index that performed the best is given the highest weight in determining the interest credited to the account.
  • A guaranteed minimum withdrawal benefit that can increase with age and higher annuity value, which is automatically included at no up-front cost.

The Global Index Annuity Series consists of three new index annuity products launched by AIG American General: AIG Global Bonus Index(SM) Annuity, which is purchased using a single lump-sum premium, and AIG Global 6 Index(SM) Annuity and AIG Global 8 Index(SM) Annuity, both of which are flexible premium products that allow clients to contribute more premium to their contract whenever they desire.

"A unique feature of the series is that it contains an account designed to provide the client with 20/20 hindsight," said Michael Harrison, vice president of annuity sales and marketing, AIG American General. "At the end of each contract year, the performance of three indices is weighted to determine the interest rate paid to the client. The weighting favors the market indices that fared the best. This innovative feature makes the AIG Global Index Annuity Series the perfect product for a client who is risk-averse, but at the same time would like the opportunity for growth."

With the AIG Global Bonus Index Annuity product, buyers receive an automatic 5 percent premium bonus to their annuity value immediately upon purchase. For example, a $100,000 single lump-sum premium earns an instant bonus of $5,000 that becomes a part of the annuity value and gives the client's retirement savings an immediate boost. Additional features of the AIG Global Bonus Index Annuity include:

  • The industry's strongest underlying guarantee of 100 percent of the premium earning 3 percent annually (less withdrawal charges).
  • A 10-year withdrawal schedule with a first year withdrawal charge of 10 percent.
  • A guaranteed minimum withdrawal benefit, allowing clients the potential to withdraw an increasing proportion of their annuity value as they age, while also providing an option to cash out if needed. This feature is automatically included in every contract.
  • An extended-care provision that provides access to the annuity's full value in qualifying medical situations.

The AIG Global 6 Index and AIG Global 8 Index products offer shorter withdrawal charge schedules and the opportunity for ongoing premium contributions. Not all features of the AIG Global Bonus Index are available with the shorter versions.

Annuities, whether used as a retirement savings vehicle or to create a steady stream of income, can be used as a complete financial solution in and of themselves, or as part of an overall diversification of assets. Because an index annuity pays interest based in part on the performance of financial indices, it offers the potential to earn more interest than traditional fixed deferred annuities.(1) An index annuity may be a solution for consumers who are:

  • Wary of market risks yet looking for a means to keep up with inflation.
  • Already contributing the maximum to their 401(k) and seeking additional tax-deferred options (based on current federal income tax laws).
  • Looking for the opportunity to participate in market growth while protecting their principal.

For more information about the AIG Global Index Annuity Series visit www.aigag.com or e-mail annuitymarketing@aigag.com.

American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo.

This contract is not insured by the FDIC, the Federal Reserve Board or any similar agency. The contract is not a deposit or other obligation of, nor is it guaranteed or endorsed by, any bank or depository institution. Withdrawals may be subject to Federal and /or State income taxes. A 10% Federal penalty tax may apply if you make withdrawals or surrender your annuity before age 59-1/2. Consult your tax advisor regarding your specific situation.

Annuity issued by American General Life Insurance Company, a subsidiary of American International Group, Inc. (AIG) 2727-A Allen Parkway, Houston, Texas 77019

AIG Global Bonus Index(SM) Contract Number 07109
AIG Global 6 Index(SM), AIG Global 8 Index(SM) Contract Number 07371
Extended Care Rider Form Number 04049 or 03049
Guaranteed Minimum Withdrawal Benefit Rider Form Number 07760

The underwriting risks, financial obligations and support functions associated with the annuities issued by American General Life Insurance Company (American General Life) are its responsibility. American General Life is responsible for its own financial condition and contractual obligations. American General Life does not solicit business in the state of New York. Annuities and riders may vary by state and are not available in all states. AIG does not underwrite any annuity contract described within this press release. Guarantees are subject to the claims-paying ability of the issuing insurance company.

(1) The annuity owner does not purchase interests or otherwise directly participate in any stock market index, mutual fund, stock or other investment in securities

AIG American General
Shayna Schulz, 713-831-8312
Vice President, Strategic Marketing