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NEW YORK, October 6, 1999 – American International Group, Inc. (AIG), ABN-AMRO, Edison Capital, the International Finance Corporation (IFC) and Emerging Markets Partnership (EMP) have announced the first closing of the AIG Emerging Europe Infrastructure Fund L.P. (the Fund), with commitments totaling $525 million.

The Fund, a private placement, will invest in direct equity, quasi-equity and convertible debt instruments to finance infrastructure projects and infrastructure-related industries in Central and Eastern Europe, the Baltic countries and possibly the former members of the Commonwealth of Independent States (CIS). The Fund will invest in infrastructure projects in telecommunications, energy, transportation, and environmental services. The Fund may also invest in natural resource development and infrastructure-related basic materials. The Fund has a ten-year term, with the option to extend up to three additional years.

AIG, ABN-AMRO and Edison Capital are co-sponsors of the Fund and will have voting representatives serving on the Fund's Investment Committee and will provide, directly or through affiliates, advisory services. IFC will also have a representative on the Fund's investment committee. EMP will serve as Principal Adviser to the Fund. Donald Roth, Managing Partner and Co-founder of EMP, will serve as Chairman of the Investment Committee, and Thierry Baudon, former Managing Director of International Finance at Suez-Lyonnaise des Eaux Group, will be Chief Executive Officer of the Fund.

The Fund's Advisory Board will be chaired by Mr. Jacques de Larosière, who was formerly President of the European Bank for Reconstruction and Development, Managing Director of the International Monetary Fund, and Governor of the Bank of France.

Subsidiaries of AIG, ABN-AMRO, and Edison Capital are sponsors and investors in the Fund. The principal investor, with a $125 million commitment in the Fund, will be PGGM, a major Dutch pension plan. The International Finance Corporation (IFC) will be an initial investor and advisor to the Fund.

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AIG is the leading U.S.-based international insurance organization and the largest underwriter of commercial and industrial insurance in the United States. Its member companies write property, casualty, marine, life and financial lines insurance in approximately 130 countries and jurisdictions, and are engaged in a range of financial services and investment management businesses. 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.

ABN-AMRO Bank NV, which is AA-rated, is the sixth largest bank in Europe and fifteenth largest in the world based on Tier 1 Capital as of July 1999. ABN AMRO Bank is one of the top five universal network banks, operating in 76 countries, and a provider of corporate and investment banking in Central and Eastern Europe.

Edison Capital is the capital and financial services subsidiary of Edison International (EIX), a leading global energy and infrastructure company with revenues of over $10 billion in 1998.

Emerging Markets Partnership (EMP) is the Principal Adviser to the largest pool of private sector assets ($4.7 billion) focused on direct equity investments in emerging markets infrastructure. EMP will maintain a staff for the AIG Emerging Europe Infrastructure Fund in London.

IFC is the private sector investment arm of the World Bank Group. It has committed over $24 billion in debt and equity finance and arranged over $17 billion in syndications since inception. It will contribute its extensive regional knowledge and expertise in Central and Eastern Europe.

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