AIG Financial Products Corp. Launches Family of Fully Investable Emerging Markets Foreign Exchange Indices.

WILTON, Conn. -- AIG Financial Products Corp. (AIG-FP), a member company of American International Group, Inc. (AIG) and the parent company of Banque AIG, today announced the launch of the AIG Emerging Markets Foreign Exchange Index(SM) (AIG-EMFXI(SM)), a new family of investable indices. According to AIG-FP, the creation of the AIG-EMFXI is a direct response to the rapid growth of investor interest in emerging markets (EM) and foreign exchange (FX) as asset classes in recent years.

AIG-FP is the creator of the Dow Jones - AIG Commodity Index(SM)(DJ-AIGCI(SM)), a leading commodity benchmark, and has a strong track record in the development of index-based markets.

The AIG-EMFXI provides investors with a transparent, rules-based tool for passive exposure to emerging markets foreign exchange. The AIG-EMFX Benchmark Index (Benchmark Index) replicates the return of investing in an equally weighted basket of 19 EM currencies against the U.S. Dollar. Viewed from a slightly different perspective, the AIG-EMFXI effectively provides a vehicle for investors to access local money market-like returns without having to maintain local currency settlement facilities.

"The investor universe has moved significantly into emerging markets in recent years, but the array of index-based opportunities for EM exposure has not kept pace," said Joseph Cassano, President of AIG-FP. "We are confident that the AIG Emerging Markets Foreign Exchange Index is going to help fill that void very effectively."

The AIG-EMFXI currently comprises the following currencies: Argentine Peso, Brazilian Real, Chilean Peso, Colombian Peso, Mexican Peso, Chinese Yuan, Indian Rupee, Indonesian Rupiah, Korean Won, Philippine Peso, Taiwan Dollar, Thai Baht, Czech Koruna, Hungarian Forint, Polish Zloty, Slovak Koruna, Israel Shekel, Russian Ruble, South African Rand, and Turkish Lira.1

According to AIG-FP, estimated historical returns of the Benchmark Index would have been comparable to, and highly correlated with, other EM asset classes yet with lower volatility.2 Moreover, the AIG-EMFXI has the advantage of being tradable and liquid, which is not always the case with other EM-oriented indices. A number of criteria have been utilized to determine which currencies qualify as EM currencies for inclusion in the AIG-EMFXI, including per capita GDP and sovereign credit ratings. The most important of these criteria, however, is the liquidity of the currency, ensuring that the Index is truly investable.

The AIG-EMFXI family of indices includes three regional indices as well as sub-indices for 20 individual currencies, 19 of which are included in the Benchmark Index. The USD versions of the Benchmark Index, regional indices and associated sub-indices include both excess and total return versions. The family also includes Euro- and Yen-denominated versions of the Benchmark Index in total return form.

Data and additional descriptive information on AIG-EMFXI are available on Bloomberg page AIGX <Go>.

About AIG Financial Products Corp.

AIG Financial Products Corp. (AIG-FP) is a wholly owned subsidiary of American International Group, Inc. Founded in 1987, AIG-FP was one of the first companies focused principally on the derivatives markets in the United States. AIG-FP is active in a full spectrum of OTC derivative and structured products markets, including commodities, credit, energy, equities, foreign exchange, and rates. As leading participants in the capital and derivatives markets, AIG-FP provides clients with corporate finance, investment, and financial risk management solutions. AIG-FP's clients include many of the world's top corporations, investment managers, pension funds, banks, investment banks, sovereigns, hedge funds, foundations and endowments, as well as select high-net-worth individuals. With group offices in London, Paris, Tokyo, Houston, Hong Kong, and Wilton, Connecticut, AIG-FP has extensive global reach. For additional information please refer to http://www.aigfp.com.

About Banque AIG

Banque AIG is a wholly owned subsidiary of AIG Financial Products Corp. For additional information please refer to http://www.banqueaig.com.

About American International Group, Inc.

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 as well as the stock exchanges in London, Paris, Switzerland, and Tokyo.

1 Note: due to liquidity concerns, Thai Baht was removed from the Benchmark Index at the end of December 2006.

2 Data for the AIG-EMFXI prior to launch on September 27, 2006 represents an historical estimation using available data. The AIG-EMFX (USD) Index has been derived from sub-indices constructed with historical data back to June 1998, except in the cases of Israel Shekel (September 2000) and Russian Ruble (June 2001). Historical returns should not and cannot be viewed as indicative of future performance.