AIG VALIC Acquires Retirement Planning Tools Developer Acumen Financial Group From KPMG LLP.

HOUSTON -- AIG VALIC, a national leading provider of retirement plan services to for-profit and not-for-profit education, healthcare and government organizations, today announced that it has acquired from KPMG LLP certain assets of Acumen Financial Group, a major provider of financial and retirement planning technology tools to financial services companies. Terms and conditions of the transaction were not disclosed.

Founded in 1983 as Acumen Financial, Inc. and subsequently integrated into the operations of KPMG LLP, Acumen Financial Group creates technology solutions that allow large organizations to communicate highly customized information to employees and other constituents in print, electronic or dynamically interactive, Web-based formats. Acumen, which will be renamed AIG Acumen, has served as the financial planning software provider to VALIC's national sales organization through AIG VALIC's registered investment advisor VALIC Financial Advisors, Inc. since 2000.

In commenting on the transaction, Bruce R. Abrams, President and CEO of VALIC and the VALIC Retirement Services Company said, "The acquisition of Acumen Financial Group further demonstrates AIG VALIC's commitment to providing our clients with the most comprehensive educational tools and retirement planning technology solutions available in our industry today. Acumen's extensive financial services industry experience and substantial quantitative skills base will help us further strengthen AIG VALIC's leadership position in the growing retirement savings marketplace. We welcome Acumen's experienced professional team and look forward to their continuing contributions in developing innovative education and planning tools for our more than two million clients nationwide."

Historically, Acumen's two largest customer bases have been financial services firms and large employers. For the former, Acumen has created financial planning platforms, consolidated customer reporting statements, relationship management tools, and Web-based financial information portals. For the latter, it has developed integrated communications programs for employees regarding their benefits, compensation, and retirement savings programs. Acumen also develops customized retirement planning education, retirement plan statements and programs to help employees execute retirement plan investment decisions.

"Given Acumen's dual strengths in technology and communications, AIG VALIC will be even better positioned to capitalize on the growing demand for Web-based employee benefit platforms that can seamlessly integrate information, administer changes and execute employee-directed decisions, all in an environment of superior support and education," said Jeffrey M. Hughes, Director, Financial Planning, VALIC.

AIG VALIC is one of the leading retirement plan service providers in the United States. For more than half a century, it has specialized in providing retirement programs and related investment, recordkeeping and administrative services to employers and employees of for-profit and not-for-profit elementary and secondary education institutions, hospitals and healthcare organizations, higher education institutions and governmental entities. AIG VALIC serves 28,000 client groups and more than two million participants. AIG VALIC is the marketing name for the group of companies comprising VALIC Financial Advisors, Inc.; VALIC Retirement Services Company; and The Variable Annuity Life Insurance Company (VALIC); each of which is a subsidiary of American International Group, Inc.

American International Group, Inc. (AIG), world leaders 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 London, Paris, Switzerland and Tokyo.