AIG SunAmerica Launches Innovative Target Maturity Funds; Investment Strategy Protects Principal and Gains Achieved During Life of Funds.

JERSEY CITY, N.J. -- AIG SunAmerica Asset Management Corp. (SAAMCo), a member company of American International Group, Inc. (AIG), today announced the launch of a new series of target maturity funds. The High Watermark Funds are continuously offered open-end mutual funds seeking to guarantee return of principal plus any gains achieved to those shareholders who remain invested to maturity. The 2010 High Watermark Fund, 2015 High Watermark Fund and 2020 High Watermark Fund are designed to meet a multitude of investors' needs, including education and retirement funding.

"These new Funds provide broad-based equity participation and, like other target maturity funds, are lower-risk, core investments that offer a selection of maturities," said J. Steven Neamtz, President of AIG SunAmerica Capital Services, Inc., the distributor for AIG SunAmerica Mutual Funds. "What sets them apart is that the shareholder's original investment is protected and investors are assured of locking in the highest Net Asset Value (NAV) attained during the life of the Fund if they hold shares to maturity."

The Fund's NAV is adjusted for dividends and extraordinary expenses. Neamtz added that this differentiates the High Watermark Funds from most principal protection programs which offer only guaranteed return of principal or principal plus a pre-determined rate. Prudential Global Funding Inc., a subsidiary of Prudential Financial, Inc., issued to each Fund a financial instrument providing the High Watermark protection.

The High Watermark Funds feature a proprietary, dynamic approach that allocates assets to both equity and fixed income, becoming more conservative as the target maturity date approaches. By dynamically allocating assets on a continuous basis to S&P 500 Index Futures as well as to non-callable U.S. Government Securities and high-grade money market instruments, the High Watermark Funds capture growth while still maintaining value protection. Trajectory Asset Management LLC, a firm specializing in quantitative investment strategies, has developed the proprietary methodology being used to manage the portfolios.

"The use of index futures to achieve equity exposure avoids security selection risk while the fixed income holdings, which typically have a low correlation to equity, enable us to provide value protection," says Juan Ocampo, President of Trajectory Asset Management LLC. "So, in these uncertain times, the High Watermark Funds are an option for those investors who have been hesitant to enter the markets."

"With so many economic and geo-political forces constantly affecting the markets, investors have moved an increasingly high level of assets to the sidelines. We believe the High Watermark Funds provide investors the opportunity to put idle assets to work on an attractive risk adjusted basis," Neamtz added.

SAAMCo is the Funds' manager. Other products from SAAMCo include a family of multi-manager funds such as the Focused Portfolios and Focused Asset Allocation Strategies.

AIG SunAmerica Asset Management Corp. (SAAMCo), is the mutual fund and asset management company of AIG Retirement Services, Inc. and a member company of American International Group, Inc. As of December 31, 2003, SAAMCo manages and/or administers 38 retail mutual funds and more than $40 billion of assets, including $9.3 billion in retail mutual funds and $30.6 billion of investments in assets underlying variable annuities.

AIG Retirement Services, Inc. is a member company of American International Group, Inc. and specializes in retirement savings and investment products and services, including individual variable and fixed annuities, group retirement products, mutual funds, financial planning and investment advisory services and guaranteed investment contracts. AIG Retirement Services, Inc. serves seven million customers with retirement savings products and services through its vast distribution network of registered representatives, independent broker-dealers, national and regional securities firms, banks and insurance agencies.

American International Group, Inc. (AIG) is the world's leading international insurance and financial services organization, with operations in more than 130 countries and jurisdictions. AIG member companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In the United States, AIG companies are the largest underwriters of commercial and industrial insurance and AIG American General is a top-ranked life insurer. AIG's global businesses also include financial services, retirement services and asset management. AIG's financial services businesses include aircraft leasing, financial products, trading and market making. AIG's growing global consumer finance business is led in the United States by American General Finance. AIG also has one of the largest U.S. retirement services businesses through AIG SunAmerica and AIG VALIC, and is a leader in asset management for the individual and institutional markets, with specialized investment management capabilities in equities, fixed income, alternative investments and real estate. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.

The S&P 500 Index is an unmanaged, broad-based, market-cap weighted index of 500 stocks. The index is unmanaged, assumes reinvestment of dividends and cannot be purchased directly by investors.

The Fund's guarantee is backed by a put agreement between AIG Series Trust, a registered investment company, on behalf of the Funds, and Prudential Global Funding ("PGF"). PGF's obligations are guaranteed pursuant to its parent, Prudential Financial, Inc. ("Prudential Financial"). The put agreement is solely the obligation of PGF and Prudential Financial. The put agreement is an obligation that runs solely to the Funds, not to the Fund's shareholders. PGF's obligations under the put agreement are dependent on the financial condition of PGF and Prudential Financial. The guaranteed payout will be reduced by any redemptions of Fund shares or distributions taken in cash, sales charges, and extraordinary Fund expenses. Distributions from the Fund are taxable whether or not you reinvest them in additional shares of the Fund. The guaranteed payout under the put agreement do not apply to shares redeemed during the investment period, and shareholders can lose money on shares redeemed early. Neither the Fund nor SAAMCo is obligated to replace the put agreement provider or Prudential should they be unable to make repayments necessary to support the guaranteed payout. The put agreement increases the Fund's expenses and could lower Fund performance. If the put agreement with PGF is terminated, the fee payable under a new agreement may be higher.

Shareholders will receive the High watermark Fund's then-current NAV rather than the guaranteed payout when they redeem shares if the Adviser fails to satisfy certain obligations under the put agreement (put agreement risk) or the Board of Trustees determines to liquidate the Fund prior to its maturity date. (Early Fund termination risk).

Shares held until maturity date (as defined in the prospectus) will be subject to the guaranteed payout. Redeeming or exchanging shares of the Fund prior to the maturity date is at the Fund's then-current net asset value, which may be less than your initial investment. Assumes you reinvest all dividends and do not redeem shares during the investment period (and that no extraordinary Fund expenses occurred).

The Fund's risk profile is largely a factor of the principal securities in which it invests and investment techniques that it uses. As a result, the Fund may be subject to the following risks: (1) opportunity costs; (2) interim redemptions; (3) early Fund termination; (4) interest rate fluctuations; and (5) futures exposure. For more information about these and other risks, see the Fund's prospectus.

Investors should carefully consider the investment objectives, risks, charges and expenses of any mutual Fund distributed by AIG SunAmerica Capital Services, Inc. before investing. This and other important information is contained in the prospectus, which can be obtained from your financial adviser or from the SunAmerica Sales Desk at 800-858-8850, ext. 6003. Read the prospectus carefully before you invest. The High Watermark Funds will be distributed by AIG SunAmerica Capital Services, Inc.