|AIG ISSUES STATEMENT CLARIFYING STATUS OF HYUNDAI NEGOTIATIONS|
|NEW YORK, August 23, 2001 – American International Group, Inc. (AIG) has issued the following statement clarifying the status of the AIG and W.L. Ross consortium’s negotiations to invest in three affiliates of the Hyundai Group of Korea:|
“Under the Memorandum of Understanding signed with the Republic of Korea’s Financial Supervisory Commission (FSC) on Thursday, completion of AIG’s investment is conditioned, among other things, upon reaching a mutually satisfactory agreement with Hyundai Securities Co., Ltd. (HDS) on an investment in HDS. The decision by HDS to issue preferred shares to the consortium at a price of 8,940 Won per share is unacceptable and will impede completion of AIG’s proposed investment in Hyundai Investment Trust & Securities Co., Ltd. (HITC) and Hyundai Investment Management Company (HIMC). Accordingly, under the terms proposed in the HDS resolution, AIG does not believe the transaction will be consummated unless this or other aspects of the transaction are promptly modified.”
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, personal and life 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.