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AIG’S AMERICAN INTERNATIONAL COMPANIES NOW OFFER ENHANCED EMPLOYMENT PRACTICES SERVICES

NEW YORK, June 21, 1999 - American International Group, Inc. (AIG) has announced that the American International Companies are now offering EPL Pak Plus, an enhanced version of EPL Pak, a specialized loss control services program provided free of cost to eligible Employment Practices Liability Insurance (EPLI) insureds.

EPL Pak Plus now includes access to the Sexual Harassment Training and Examination Program (STEP), an Internet-based employee testing and training program, and a toll-free hotline to report employment practices issues. The American International Companies developed these enhancements after recent United States Supreme Court Decisions regarding employer responsibility to promote proper employer practices in the workplace.

STEP is a 20-minute program offered, by HR-Comply, Inc., that leads employees through a training program that educates employees on sexual harassment scenarios and concludes with a final exam that can ultimately provide evidence of the employer's affirmative efforts to assure – and employees' knowledge of – proper employment practices. The program is also available in hard copy form.

EPLI insureds also have access to a toll free, 24-hour-a-day, 7 days a week, manned “hotline” offered by EthicsLine that is available to an insured's employees to report harassment, discrimination, and other employment-related issues to an independent third party. Callers may remain anonymous. EthicsLine consultants gather information about an employment practices incident from the caller and generate a report. The report is forwarded within one business day to a designated contact person(s) at the insured's company for follow-up and/or further investigation if necessary. In the event of an emergency, a designated contact person will be notified of the situation immediately. EthicsLine does not include any investigation or analysis pertaining to the accuracy or reliability of information received as a result of a call.

“Companies today must act aggressively and proactively to mitigate employment practices exposures,” said John Cavoores, President, National Union Fire Insurance Company of Pittsburgh, Pa. “EPL Pak Plus provides insureds with tools that not only address risk, but also to help develop a legal defense should litigation ensue from an employment practices claim. Additionally, EPL Pak Plus continues to offer value-added services to help insureds manage their employment practices initiatives. This includes access to educational programs and resources, and consultation on human resources management and employment practices labor law.”

EPL Pak Plus includes the features of EPL Pak, which is designed to help insureds obtain compliance with current labor laws and regulations. Loss prevention services include: Compliance Digest and Encyclopedia portions of the HR/ComplyTM electronic human resource library; an initial legal consultation with top labor and employment attorneys; an employment practices self-audit guide; employment practices seminars; a monthly EPL client newsletter from top employment practices firms; and a fixed price on legal review and analysis of an insured's EPL policies.

For more information about EPL Pak Plus, contact your insurance broker, or local AIG office, or managementliability@aig.com, or Robin Kestenbaum at 212/458-1716. Information is also available on these and other management liability products at http://access.aig.com.

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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.

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