AIG United Guaranty Expands International Presence to Pursue EU Opportunities; Madrid is Latest Office for Growing International Business.

GREENSBORO, N.C. -- AIG United Guaranty(1), whose affiliate companies provide mortgage guaranty insurance designed to increase homeownership, has filled several key management positions as part of its international growth program.

According to Doug Rivenburgh, senior VP-International Group, "These organizational changes and new office locations reflect a long-term commitment to the European market."

As VP-Europe and the Middle East, Chaim Kiffel, who headed the company's first international venture (Israel), is responsible for the European market. He will work in the company's office in Jerusalem and EU headquarters in London.

Eric Klopfer, formerly with GE Mortgage Insurance, will manage the London office to coordinate strategic business development with emphasis on structured products. His broad background in mortgage insurance includes specific experience in the European housing finance market.

AIG United Guaranty opened its Madrid office in late 2003, and in April began covering mortgage credit risk for Spain's fifth largest bank, Banesto, a member of the Santander Group. The exclusive agreement with Banesto facilitates expansion of the bank's mortgage lending program for loans with loan-to-value (LTV) ratios above 80%, to a maximum 97% LTV. AIG United Guaranty is in advanced discussions with other lenders in that market and expects to close additional agreements during 2004. Operations in Spain are managed by Joaquin Monge.

AIG United Guaranty also has hired a country manager to develop business in Italy. Corrado Pavanati, currently with Unicredito Bank, one of Italy's leading lenders, will join the Milan office in July. The company expects to be writing business in Italy by first quarter 2005.

The subsidiaries of United Guaranty Corporation (UGC), with 29 locations worldwide, provide mortgage guaranty insurance and other mortgage-related financial services to mortgage lenders and investors. Current operations include locations in Israel, Hong Kong, Taiwan, and Madrid, with business development offices in London, Milan and Mexico City (August 2004). UGC is a member company of American International Group, Inc. (AIG), the world's leading international insurance and financial services organization, with operations in more than 130 countries and jurisdictions.

(1)AIG United Guaranty is a marketing term for United Guaranty Corporations and its subsidiaries.