American General Life Breaks New Ground with Global Multi-Index Insurance Product; AIG Elite Global IUL (Indexed Universal Life) Bases Product Accumulation in Part on the Performance of Multiple External Financial Indices.

HOUSTON -- American General Life Insurance Company (American General Life), a member company of American International Group, Inc. (AIG), has introduced AIG Elite Global IUL (indexed universal life) insurance, which provides a death benefit as well as the opportunity for cash value accumulation based in part on the performance of three global external financial indices. With an interest crediting rate based in part on the performance of the Standard & Poor's(R) 500 Composite Price Index, Hang Seng Index (Hong Kong) and Dow Jones EURO STOXX 50(R) (Western Europe), AIG Elite Global IUL provides an annual minimum guaranteed interest rate of 2.5 percent, even if the indices yield negative returns.

"In a life insurance market crowded with thousands of options, AIG Elite Global IUL offers consumers an innovative alternative that delivers strong death benefit protection and competitive guarantees and benefits," said Rod Rishel, vice president of product management for AIG American General.

Indexed interest is credited based on a five-year term with automatic overweighting to the two best-performing indices. At the end of each five-year period, the value of each index is compared with the value at the beginning of that period. Indexed interest, if any, is calculated using 75 percent of the return of the best performing index after adjustment for the participation rate, plus 25 percent of the return of the second-best performing index after adjustment for participation rate. The third-best performing index over the period is not used in calculating the amount of indexed interest to be credited.

AIG Elite Global IUL also provides a number of options that enable policyowners to customize their policies to their specific needs--even if those needs change.

"One of the best aspects about AIG Elite Global IUL is its flexibility," said Rishel. "Policyowners can allocate all or part of their premiums to an indexed or excess account, and they can change that allocation at any time. They can also choose from three death benefit options, all of which deliver payouts, minus any distributions from the policy cash value."

Adding to the policy's flexibility, AIG Elite Global IUL offers two maturity extension riders, a terminal illness rider, a waiver of monthly deduction rider and surrender value enhancement term rider. The policy also includes a loan provision, and partial withdrawals are available any time after the first policy year (death benefit cannot be reduced below $100,000 as a result of a withdrawal).

"American General Life introduced its first indexed universal life insurance policy in 1996," said Rishel, "and we have been bringing innovative products to meet the needs of consumers - who appreciate the security features of universal life but are looking for better growth possibilities - ever since."

AIG American General is the marketing name for the companies comprising the domestic life operations of American International Group, Inc. (AIG), including American General Life. AIG American General companies offer a broad spectrum of life insurance, annuity, investment and accident and health products to serve the financial and estate planning needs of its customers throughout the United States.

American International Group, Inc., 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 in the U.S. on the New York Stock Exchange as well as the stock exchanges in London, Paris, Switzerland and Tokyo.

AIG Elite Global IUL (Policy Form 06444, Maturity Extension Rider (Accumulation Value) 99110, Maturity Extension Rider (Death Benefit) 99111, Terminal Illness Rider 91401, Waiver of Monthly Deduction Rider 82001, Surrender Value Enhancement Term Rider 06790) is issued by American General Life, 2727-A Allen Parkway, Houston, Texas 77019. The underwriting risks, financial obligations and support functions associated with the policies issued by American General Life are its responsibility. American General Life is responsible for its own financial condition and contractual obligations. American General Life does not solicit business in the state of New York. Policies and riders not available in all states.

All guarantees are subject to the claims-paying ability of American General Life. This policy and applicable riders are subject to fees and charges.

The policy owner does not purchase interests or otherwise directly participate in any stock market index, mutual fund, stock or other investment in securities.

"Standard & Poor's(R)", "S&P(R)", "S&P 500(R)", "Standard & Poor's 500" and "500" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by American General Life Insurance Company. AIG Elite Global IUL is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of purchasing this Product.

The Dow Jones EURO STOXX 50(R) is the intellectual property (including registered trademarks) of Stoxx Limited, Zurich, Switzerland and/or Dow Jones & Company, Inc., a Delaware corporation, New York, USA, (the "Licensors"), which is used under license. AIG Elite Global IUL is in no way sponsored, endorsed, sold or promoted by the Licensors and neither of the Licensors shall have any liability with respect to this product.

The mark and name "Hang Seng Index" is proprietary to Hang Seng Data Services Limited ("HSDS"), which has licensed its compilation and publication to HSI Services Limited ("HSI"). HSI and HSDS have agreed to the use of, and reference to, the Hang Seng Index by American General Life ("the Issuer") in connection with the AIG Elite Global IUL (the "Product"). However, neither HSI nor HSDS warrants, represents or guarantees to any person the accuracy or completeness of the Hang Seng Index, its computation or any information related thereto, and no warranty, representation or guarantee of any kind whatsoever relating to the Hang Seng Index is given or may be implied. Neither HSI nor HSDS accepts any responsibility or liability for any economic or other loss which may be directly or indirectly sustained by any person as a result of or in connection with the use of and/or reference to the Hang Seng Index by the Issuer in connection with the Product, or any inaccuracies, omissions or errors of HSI in computing the Hang Seng Index. Any person dealing with the Product shall place no reliance whatsoever on HSI and/or HSDS nor bring any claims or legal proceedings against HSI and/or HSDS in any manner whatsoever. For the avoidance of doubt, this disclaimer does not create any contractual or quasi-contractual relationship between any broker, holder or other person and HSI Services Limited and/or Hang Seng Data Services Limited and must not be construed to have created such relationship.