American International Group, Inc., the Blackstone Group L.P. and Kissinger Associates, Inc. Announce a New Strategic Advisory Venture.

Business Editors

NEW YORK--(BUSINESS WIRE)--Feb. 16, 2000

American International Group, Inc. (AIG), The Blackstone Group L. P. and Kissinger Associates, Inc. announced today the establishment of a new venture to provide financial advisory services to corporations seeking high level independent strategic advice.

Each party to the venture brings unique value, skills, and relationships. Kissinger Associates, which is chaired by former U.S. Secretary of State Henry Kissinger, is a strategic advisor to CEOs and senior executives of numerous global corporations. AIG is the leading international insurance and financial services organization with an unmatched worldwide network, and it also sponsors private equity funds in many parts of the world, particularly in Asia. The Blackstone Group, in addition to sponsoring private equity, real estate, liquid alternative asset, and mezzanine funds, is a pioneer in cross-border mergers and acquisitions and has advised on hundreds of billions of dollars worth of M&A and restructuring assignments.

Together, the three firms will enjoy excellent access to business leaders worldwide and will offer a unique set of client services. The venture will operate globally and will take advantage of the existing relationships between the partners:

- AIG has an ownership interest in Blackstone and is an investor in several of
Blackstone's private equity funds;

- AIG and Blackstone have a joint venture, specializing in restructuring and
M&A advisory services in selected Asian countries;

- Henry Kissinger chairs both AIG's International Advisory Board and the
advisory boards of several AIG-sponsored Infrastructure Funds.

The AIG-Blackstone-Kissinger Associates venture recently completed its first strategic advisory assignment on behalf of a New York Stock Exchange listed U.S. company.

In light of Blackstone's recently announced private equity fundraising for a specialized telecommunications fund, the telecommunications industry will be one initial area of focus. The venture will also target the energy and utility industries given the partners' strong relationships in this sector. The venture also plans to leverage Kissinger Associates' global relationships to provide investment opportunities to Blackstone's and AIG's private equity funds, including Blackstone Capital Partners III, Blackstone Real Estate Partners III, Blackstone Mezzanine Partners, and AIG Asian Infrastructure Funds I and II, AIG Asian Opportunity Fund, AIG-GE Capital Latin American Infrastructure Fund and AIG Developed Markets Private Equity Fund.

Henry Kissinger, Chairman of Kissinger Associates said, "Hank Greenberg, Pete Peterson and I have been close friends and business associates for decades. This venture of our three firms is a great opportunity to provide a new level of service to multinational companies in the contemporary political and economic framework."

M.R. Greenberg, Chairman and CEO of AIG said, "I believe that AIG's international presence, Blackstone's worldwide financial advisory and merger and acquisition experience, and Kissinger Associates' extensive global relationships will bring to corporations a unique combination of services not available elsewhere. AIG is pleased to join with these two outstanding organizations in the creation of this new venture."

Peter G. Peterson, Chairman of The Blackstone Group, said, "In this new global economy, with its requirements for strategic thinking on a global basis, for cross-border mergers and acquisitions, for government privatizations of major industries and for restructuring of industries battered by the recent global financial crisis, we believe each of these entities bring some special knowledge and expertise to the table. We at Blackstone very much look forward to working with AIG and Kissinger Associates and capitalizing on these opportunities."

AIG is the leading U.S.-based international insurance organization and the largest underwriter of commercial and industrial insurance in the United States. Its member companies write property casualty, marine, life and financial lines insurance in approximately 130 countries and jurisdictions, and are engaged in a range of financial services and investment management businesses. American International Group's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.

The Blackstone Group is a leading private investment bank based in New York City, which was founded in 1985 by its Chairman, Peter G. Peterson and its President and CEO, Stephen A. Schwarzman. Blackstone is engaged in six business lines including Private Equity Investing, Mergers and Acquisitions Advisory, Restructuring and Reorganization Advisory, Private Equity Real Estate Investing, Private Mezzanine Investing and Liquid Alternative Asset Investing.

Kissinger Associates, which is chaired by the former U.S. Secretary of State Henry Kissinger, is a leading consulting firm based in New York City. Thomas F. McLarty, formerly Presidential Chief of Staff and Latin American Envoy, recently joined the Firm as Vice Chairman. Kissinger Associates provides strategic and geopolitical consulting services to multinational corporations, including assistance in forming joint ventures and guidance in solving business problems in foreign countries.