AIG Raises Quarterly Common Stock Dividend 13.5 Percent.

Business Editors

NEW YORK--(BUSINESS WIRE)--May 16, 2001

The Board of Directors of American International Group, Inc. (AIG) today declared a quarterly cash dividend on the company's common stock of 4.2 cents per share, payable on September 14, 2001 to shareholders of record on August 9, 2001. This represents a 13.5 percent increase in the quarterly cash dividend on AIG common stock.

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. 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.