AIG SunAmerica Benefit First to Combine Upside Potential of Equity Markets with Guaranteed Rising Retirement Income Even When Investors Take Withdrawals.

MarketLock Income Plus Option in Select Variable Annuities Locks in Market Gains or Annual Income Credit for up to 15 Years

LOS ANGELES -- AIG SunAmerica Retirement Markets, Inc. today announced an industry first with the introduction of MarketLock Income Plus - an optional withdrawal benefit in select AIG SunAmerica variable annuities that provides investors with the upside potential of the equity markets and lifetime income that's guaranteed to increase for up to 15 years - even in years when withdrawals are taken or the market declines.

"Today's economic conditions and market volatility have many investors looking for solutions to help them retire stronger by providing the income they need to help keep up with rising costs," said Jana Waring Greer, President of AIG SunAmerica Retirement Markets, Inc. "We have found that nearly 85% of investors over the age of 50 want strategies that can deliver rising income - when and how they need it - regardless of what happens in the markets. By providing the assurance that lifetime income can grow even after retirees start taking income, AIG SunAmerica is at the forefront of the industry in meeting this need."

MarketLock Income Plus was designed for investors who need income right away or in the near future, but also want their income to continue to grow and last for the rest of their lives. MarketLock Income Plus is a guaranteed minimum withdrawal benefit (GMWB) that automatically "locks in" an investor's market gains or an annual income credit of up to 7%, whichever is greater. Unlike other GMWBs on the market today, MarketLock Income Plus offers investors an annual income credit even in years in which they take withdrawals. For example, if an investor takes a 5% withdrawal, this percentage is simply deducted from the 7% annual income credit on the next contract anniversary. Thus, an investor's income goes up 2% even if the market is flat or drops, and it will not go down due to market volatility.

Other features of MarketLock Income Plus include:

* A minimum floor for retirement income that is equal to 200% of their eligible first-year investments for investors who do not take any withdrawals during the first 10 contract years

* Annual income credit available for up to 15 years

* Market gains that are locked in for rising income until at least age 85, for clients who elect to extend the feature at five-year intervals

* Guarantees backed by the claims-paying ability of AIG SunAmerica Life Assurance Company

"For most Americans today, retirement is not the same as it was just a generation ago," said Rob Scheinerman, Senior Vice President of Product Management for AIG SunAmerica Retirement Markets, Inc. "People are discovering they need flexibility in their withdrawal strategies, and that they cannot rely on a fixed income to maintain their lifestyles well into retirement. MarketLock Income Plus gives today's retirees access to the upside potential of the market, protection from market downturns and guaranteed annual increases for their retirement income - even while they're taking withdrawals."

MarketLock Income Plus' investment selection includes a choice of model allocations, balanced portfolios or a cash management portfolio. To realize the benefits of the MarketLock Income Plus option, clients must take withdrawals within the parameters of the feature. Depending on the performance of their investment, clients may never need to rely on the protection provided by this optional insurance feature available for an additional fee.

New research sponsored by AIG SunAmerica and conducted by Harris Interactive has found that 82% of Americans aged 50 and over are concerned about annual increases in their living expenses. The rising cost of healthcare topped the list of concerns, followed by the impact of inflation, and worries about the reliability of the Social Security system. Despite these concerns, the research also revealed that 43% of people in the 50 plus age group do not have an income strategy in place to maintain their standard of living into retirement. This discrepancy underscores the tremendous market now developing for innovative financial products that can effectively address the cost of living concerns of investors as they approach retirement.

The America Speaks Out 2008 Retirement Income Survey was conducted online within the United States by Harris Interactive between May 2-6, 2008 among 2,203 U.S. adults aged 50 and over. Results were weighted as needed for age, sex, race/ethnicity, education, region and household income. Propensity score weighting was also used to adjust for respondents' propensity to be online. Respondents for this survey were selected from among those who have agreed to participate in Harris Interactive surveys. The data have been weighted to reflect the composition of the U.S. adult population. Because the sample is based on those who agreed to be invited to participate in the Harris Interactive online research panel, no estimates of theoretical sampling error can be calculated. For more information on America Speaks Out: 2008 Retirement Income Survey, visit http://141.150.158.38/AIGSunAmericaHarrisSurvey.pdf.

AIG SunAmerica Retirement Markets, Inc., a subsidiary of AIG Retirement Services, Inc., specializes in marketing and distributing the retirement savings products issued by AIG SunAmerica Life Assurance Company and First SunAmerica Life Insurance Company. AIG SunAmerica Capital Services, Inc. distributes variable annuities through an extensive national network of registered representatives at independent broker-dealers, securities firms and banks.

Harris Interactive is the 12th largest and fastest-growing market research firm in the world. The company provides innovative research, insights and strategic advice to help its clients make more confident decisions which lead to measurable and enduring improvements in performance. Harris Interactive is widely known for The Harris Poll, one of the longest-running, independent opinion polls and for pioneering online market research methods. The company has built what it believes to be the world's largest panel of survey respondents, the Harris Poll Online. Harris Interactive serves clients worldwide through its United States, Europe and Asia offices, its wholly owned subsidiaries Novatris in France and MediaTransfer AG in Germany, and through a global network of independent market research firms. More information about Harris Interactive may be obtained at www.harrisinteractive.com.

American International Group, Inc. (AIG), a world leader 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 on the New York Stock Exchange, as well as the stock exchanges in Paris and Tokyo.

MarketLock Income Plus is an optional guaranteed minimum withdrawal benefit that offers the opportunity for rising income with an annual income credit of up to 7%. The additional annualized fee for the feature, which is available at contract issue, is 0.95% of the Income Base for Single Life; 1.20% of the Income Base for Joint Life. The fee is deducted from the contract value quarterly. When the Income Base is increased, it will have the effect of increasing the dollar amount of the fee. The fee and other parameters may change upon extension of the feature each 5 years. When the Income Base is decreased due to excess withdrawals, it will have the effect of reducing the dollar amount of the fee. Please see the prospectus for more information, including additional limitations and restrictions.

Variable annuities are designed for long-term retirement investing. Because investors pay no taxes on earnings within their variable annuity until they take a withdrawal, withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 591/2, a 10 percent federal tax penalty may apply. Early withdrawals may also be subject to withdrawal charges imposed by the insurance company. Partial withdrawals may also reduce benefits available under the annuity contract as well as the amount available upon a full surrender. An investment in a variable annuity, like any investment in market securities, involves investment risk, including possible loss of principal. The contract, when redeemed, could be worth more or less than the total amount invested.

Please call 1-800-445-SUN2 or contact your financial advisor to request a prospectus. Please read the prospectus carefully before investing. The prospectus contains the investment objectives, risks, fees, charges, expenses and other information regarding the contract and underlying funds, which should be considered carefully before investing.

Variable annuities are issued by AIG SunAmerica Life Assurance Company and, in New York, by First SunAmerica Life Insurance Company, New York, NY. An investment in a variable annuity is not guaranteed or endorsed by any bank, is not a deposit or obligation of any bank and is not federally insured by the Federal Deposit Insurance Corporation (FDIC), Federal Reserve Board or any other federal government agency. The purchase of a variable annuity is not required for and is not a term of the provision of any banking service or activity. Neither AIG SunAmerica nor its representatives provide tax or legal advice. Investors should contact their own tax advisor or attorney regarding their particular situation. Distributed by AIG SunAmerica Capital Services, Inc., 21650 Oxnard St., Woodland Hills, CA 91367 [phone].

Not FDIC or NCUA/NCUSIF Insured

May Lose Value -- No Bank or Credit Union Guarantee
Not a Deposit -- Not Insured by Any Federal Government Agency