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TOKYO and NEW YORK, February 23, 2001 - American International Group, Inc. (AIG) has announced that it has been named the exclusive sponsor for the reorganization of The Chiyoda Mutual Life Insurance Company (Chiyoda) by its Legal Trustee. In connection with the reorganization, under the draft plan submitted to the Tokyo District Court AIG expects to make a capital contribution to Chiyoda of approximately ¥60 billion (about US$522 million), with no contribution contemplated from Japan's Policyholder Protection Corporation.
AIG expects to close the transaction by mid-April, subject to approval of the reorganization plan by the creditors, the Tokyo District Court and other regulatory authorities. Chiyoda has assets of approximately ¥2.5 trillion (about US$21.7 billion). AIG intends to operate Chiyoda as a separate entity from the existing Japanese life insurance operations of AIG's American Life Insurance Company (ALICO).

Commenting on the transaction, AIG Chairman M. R. Greenberg said, "We are pleased that the Legal Trustee has chosen AIG to rehabilitate Chiyoda. As a result, AIG will significantly expand its presence in the traditional Japanese life insurance market, gaining access to an important market segment in Japan through a revitalized Chiyoda sales network. By rehabilitating Chiyoda, AIG will provide its policyholders security as well as access to innovative AIG insurance products."

This press release may contain forward-looking statements. Please refer to the AIG Quarterly Report on Form 10-Q for the quarter ended September 30, 2000, for a description of the business environment in which AIG operates and the important factors that may affect its business. AIG is not under any obligation to (and expressly disclaims any such obligations to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

AIG is the leading U.S.-based international insurance and financial services organization and the largest underwriter of commercial and industrial insurance in the United States. Its member companies write a wide range of commercial and personal insurance products through a variety of distribution channels in approximately 130 countries and jurisdictions throughout the world. AIG's global businesses also include financial services and asset management, including aircraft leasing, financial products, trading and market making, consumer finance, institutional, retail and direct investment fund asset management, real estate investment management, and retirement savings products. American International Group, Inc.'s common stock is listed on the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.