AIG's Reorganization Plan for Chiyoda Mutual Life Insurance; Company Receives Final Approval From Japanese Authorities.

Business Editors

NEW YORK--(BUSINESS WIRE)--April 20, 2001

American International Group, Inc. (AIG) has today announced that the reorganization plan for The Chiyoda Mutual Life Insurance Company (Chiyoda) has been approved by the creditors, the Tokyo District Court and other regulatory authorities in Japan, and that Chiyoda has become a joint-stock company and commenced operations as AIG Star Life Insurance Co., Ltd., a wholly owned subsidiary of AIG.

AIG was named exclusive sponsor for the Chiyoda reorganization on February 23, 2001 by Chiyoda's Legal Trustee.

AIG Star Life Insurance Co., Ltd., will operate as a separate entity from the existing Japanese life insurance operations of AIG's American Life Insurance Company (ALICO).

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 and personal 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.