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NEW YORK, Mar 19, 2003 -- AIG Highstar Capital (AIG Highstar), a private equity group sponsored by American International Group, Inc. (AIG), along with DLJ Merchant Banking Partners III, L.P., and its affiliated co-investors, each managed by Credit Suisse First Boston Private Equity (CSFB Private Equity), have reached a definitive agreement with Duke Energy North America to acquire its 50% interest in Duke/UAE Ref-Fuel.

Duke/UAE Ref-Fuel owns American Ref-Fuel Company, a holding company for six waste-to-energy facilities in the Northeastern United States. The agreement calls for a newly formed entity owned by Highstar Renewable Fuels LLC and CSFB Private Equity to pay Duke Energy approximately $306 million and is expected to close, subject to customary closing conditions including FERC and certain other regulatory approvals, by mid-year. Credit Suisse First Boston acted as financial advisor to AIG Highstar and CSFB Private Equity in this transaction.

Christopher H. Lee, Managing Director of AIG Highstar, stated, "This investment in Duke/UAE Ref-Fuel will be an excellent addition to AIG Highstar's portfolio of energy infrastructure assets, which include power transmission and generation and natural gas storage and transportation."

American Ref-Fuel Company's facilities, located in Connecticut, Massachusetts, New Jersey, New York and Pennsylvania, convert municipal solid waste into energy and have a gross capacity of approximately 380 megawatts.

AIG Highstar, a private equity group sponsored by AIG, manages private investment funds that make structured equity investments in infrastructure-related projects and operating companies. AIG is the world's leading U.S.-based international insurance and financial services organization, the largest underwriter of commercial and industrial insurance in the United States, and among the top-ranked U.S. life insurers. Its member companies write a wide range of general insurance and life insurance products for commercial, institutional and individual customers through a variety of distribution channels in approximately 130 countries and jurisdictions throughout the world. AIG's global businesses also include financial services, retirement savings and asset management. AIG's financial services businesses include aircraft leasing, financial products, trading and market making, and customer finance. AIG has one of the largest retirement savings businesses in the United States and is a leader in asset management for the individual and institutional markets, with specialized investment management capabilities in equities, fixed income, alternative investments and real estate. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo. AIGGIG is a global leader in asset management, with extensive investment management capabilities in equities, fixed income, private equity, hedge funds and real estate. Through its subsidiaries and affiliates, AIGGIG managed more than $313 billion of AIG and external client assets as of December 31, 2002, including $52 billion in assets for individual and institutional clients through mutual funds, limited partnerships and institutional separate accounts.

CSFB Private Equity, the global private equity arm of Credit Suisse First Boston, is the largest private equity manager in the world, with more than $27 billion of assets under management. CSFB Private Equity is comprised of investment funds that focus globally on leveraged buyouts, mezzanine, real estate and venture capital investments as well as primary and secondary purchases of interests in private investment funds. CSFB Private Equity includes the family of DLJ Merchant Banking funds and the Sprout funds as well as the Private Fund Group, which is dedicated to raising investment capital for global private investment firms. CSFB Private Equity also provides Customized Fund of Funds services, designing tailor-made solutions for institutional and high net worth investors. CSFB Private Equity maintains offices in New York, Los Angeles, Menlo Park, Chicago, San Francisco, Houston, London, Buenos Aires, Hong Kong and Tokyo.

Duke Energy North America is Duke Energy's North American merchant energy business. Duke Energy North America's generation portfolio currently includes approximately 14,200 megawatts in operation. Duke Energy is a diversified multinational energy company with an integrated network of energy assets and expertise. The company manages a dynamic portfolio of natural gas and supply, delivery and trading businesses -- meeting the energy needs of customers throughout North America and in key markets around the world. Duke Energy, headquartered in Charlotte, N.C., is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: www.duke-energy.com.

CONTACT: AIG, New York Joe Norton, 212/770-3144