AIG Splits Common Stock 5-For-4 and Raises Quarterly Common Stock Dividend 11.6 Percent.

NEW YORK--(BUSINESS WIRE)--May 19, 1999--

The Board of Directors of American International Group, Inc. (AIG) today declared a five-for-four split of the company's common stock in the form of a 25 percent common stock dividend. The dividend is payable on July 30, 1999 to shareholders of record on June 25, 1999.

The Board also declared a quarterly cash dividend on the new shares of $.05 per share, payable on September 17, 1999 to shareholders of record on September 3, 1999. This represents a 11.6 percent increase in the quarterly cash dividend on AIG common stock.

AIG is the leading U.S.-based international insurance organization and the largest underwriter of commercial and industrial insurance in the United States. Its member companies write property, casualty, marine, life and financial lines insurance in approximately 130 countries and jurisdictions, and are engaged in a range of financial services and investment management businesses. 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.