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LEXINGTON INSURANCE COMPANY INTRODUCES RECALLRESPONSE(R), INSURANCE FOR PRODUCT RECALL EXPENSES AND LIABILITY
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NEW YORK--Jan. 17, 2006--Lexington Insurance Company, a member company of American International Group, Inc. (AIG), today introduced RecallResponse(R), coverage for first-party expenses and third-party liability arising from the recall of finished or component goods. The policy is provided as a supplement to Lexington's product liability insurance.

"Whether a recall is voluntary or involuntary, it can be extremely costly for a company," said Kevin Kelley, Chairman and Chief Executive Officer of Lexington Insurance Company. "RecallResponse arms our product liability policyholders with the insurance they need to address the multiple facets of this exposure."

RecallResponse can cover product recall expenses alone or can be expanded to cover liability to third parties arising from the recall. Insurable expenses can include the costs of notifying customers, shipping and disposing of a recalled product, repairing and replacing the product, and refunding customer payments. Expenses associated with extra warehousing and extra personnel to support a recall can be insured as well. Coverage can be extended worldwide.

Lexington also provides policyholders with access to attorneys who specialize in the legal and regulatory aspects of product recalls.

Lexington's product liability insurance is available on a primary or excess basis to numerous types of companies, ranging from food processing and packaging to durable goods manufacturing.

For more information on RecallResponse, please contact Tom McLaughlin, Assistant Vice President Products, at 617-330-8555 or email lexnewproducts@aig.com.

American International Group, Inc. (AIG), world leaders in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed in the U.S. on the New York Stock Exchange and ArcaEx, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.

Insurance is underwritten by member companies of American International Group, Inc., and is subject to underwriting review and approval. The description herein is a summary only. It does not include all terms, conditions and exclusions. Coverage may not be available in all states or in all countries. Non-insurance products may be provided through independent third parties.

CONTACT:
American International Group, Inc.
Peter Tulupman
212-770-3141