American Express Retirement Services Announces Bluestar; New Technology Service Platform Provides Industry-Leading Capabilities.

Business Editors

MINNEAPOLIS--(BUSINESS WIRE)--March 13, 2002

American Express Retirement Services today publicly announced BlueStar(SM), its next generation technology and service platform designed to position the company for future enhancements and growth. A major initiative underway for the past several months, BlueStar is a dramatically different platform that moves American Express Retirement Services away from the mainframe technology still common in the defined contribution/401(k) industry toward a "best-in-class" client/server-based system utilizing a completely redesigned technology platform.

The cornerstone of BlueStar is a central hub that connects to a new recordkeeping engine, WySTAR(R) from PFPC Inc., and to the various other systems supporting American Express Retirement Services' offerings, such as transactional Internet, interactive voice response, plan participant statements, investment trade settlement, and other support systems.

"BlueStar provides a strong foundation for us to meet the future needs and demands of the defined contribution marketplace," said John Baker, chief operating officer for American Express Retirement Services. "It gives us more flexibility and enhanced capabilities for serving clients. With its central hub approach, BlueStar gives us a unique ability to quickly adopt future technology, enhance existing applications and provide exciting new services--all by plugging in new components."

The benefits of BlueStar are numerous, from moving data more quickly and efficiently within the system and the elimination of redundant data stores, to the ability to upgrade service or processing applications without interruption to other applications. Plan sponsor clients will benefit from quicker implementation of new plan features and/or additional investment options and removed limits on the number of funds and money types.

"We call BlueStar a service platform because it comprises a transformation of our products, our processes and our people--beyond any single technology or system," said Baker. "It is a platform that allows our people to better anticipate and accommodate client service needs, and positions American Express for growth today and far into the future."

"American Express has long been committed to being one of the world's most advanced users of technology," said Ward Armstrong, president of American Express Retirement Services. "Like smart cards and Internet account services, BlueStar is one more demonstration of that commitment and is exciting news for the retirement services industry. We plan to continue to adopt and advance new technologies that will benefit our clients and our retirement plan participants."

Providing a wide range of global fund services to the investment management industry, PFPC is the nation's largest full-service mutual fund transfer agent and second largest provider of mutual fund accounting services. A member of The PNC Financial Services Group, Inc., (NYSE:PNC), PFPC is also a leading provider of retirement services, subaccounting, advanced output solutions, shareholder services, custody, securities lending, integrated banking transaction services and alternative investment services. PFPC clients comprise some of the world's most successful financial services companies, including brokerage firms, pension and investment managers, insurance companies and banks. PFPC's affiliate, PFPC International Ltd., with offices in Dublin and County Wexford, Ireland and Luxembourg, has served the international funds community since 1993. Contact PFPC by email at mailto:[e-mail].

American Express Retirement Services is a provider of services for defined contribution and 401(k) plans with total combined assets of more than $31 billion and a participant base of more than 1.2 million. Based in Minneapolis, the company provides corporations, municipalities and multi-employer organizations nationwide with a complete package of financial education, recordkeeping and trustee services for tax-deferred retirement plans. For more information on American Express Retirement Services, visit www.americanexpress.com/sponsors. American Express Retirement Services is a division of American Express Financial Advisors Inc., provider of financial advisory services and investment programs for more than 2.3 million clients. American Express Financial Advisors Inc. has helped people with their financial goals for over 100 years.

Registered investments and financial planning services are offered through American Express Financial Advisors Inc. Member NASD. American Express Company is separate from American Express Financial Advisors Inc. and is not a broker-dealer. Retirement plan and trust related services are offered through American Express Trust Company.