|AIG ANNOUNCES TERMINATION OF HYUNDAI NEGOTIATIONS|
NEW YORK--Jan. 17, 2002--American International Group, Inc. (AIG) has issued the following statement concerning AIG's decision to terminate its 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 August 22, 2001, completion of AIG's investment was conditioned, among other things, upon reaching a mutually satisfactory agreement with the FSC on the terms of AIG's investment in Hyundai Investment Trust and Securities Co., Ltd. (HITC) and Hyundai Investment Management Co., Ltd. (HIMC) as well as with Hyundai Securities Co., Ltd. (HDS) on the terms of AIG's investment in HDS. Although the Memorandum of Understanding expired on December 31, 2001, at the request of the FSC we extended discussions through January 15, 2002 in an effort to reach agreement with the parties. However, despite the best efforts of all the parties concerned, it appears that an agreement will not be attained. Thus, AIG will terminate negotiations with the FSC and HDS with respect to its proposed investment in the three Hyundai affiliates.
"AIG has had a long history in the Korean market and is confident in the country's future prospects. AIG remains committed to its life and general insurance operations which are well positioned and will continue to explore opportunities to expand its presence in Korea."
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. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.CONTACT: Joe Norton 212/770-3144