American International Group, Inc. Affiliates Invest in Iridium.

WASHINGTON, D.C.--(BUSINESS WIRE)--Dec. 7, 1998--Iridium LLC announced today that American International Underwriters Overseas, Ltd. (AIUO), a wholly-owned subsidiary of American International Group, Inc. (AIG), and AIG Asian Infrastructure Fund LP (the Fund) will together acquire approximately four million Class 1 interests in Iridium LLC, joining the 19 other strategic investors in Iridium.

AIUO and the Fund will acquire the Class 1 interests from certain subsidiaries of PT Bakrie Communications Corporation of Indonesia as part of the financial restructuring of PT Bakrie & Brothers Group, BBK, including PT Bakrie Communications Corporation. The sale of the shares does not impact the joint venture between Bakrie Communications and DDI Corporation of Japan, called Iridium South Pacific Pty Limited, which is responsible for offering Iridium services in Australia, New Zealand and the South Pacific. Financial terms of the transaction were not disclosed.

"We are pleased to become an investor in Iridium," said AIG vice chairman Edward E. Matthews. "We have been watching Iridium for quite a while now and are very impressed with the management of the company. We believe its business proposition is solid and represents an excellent investment opportunity for AIG."

"We are looking forward to having AIG as a strategic investor in our company," said Edward F. Staiano, Iridium vice chairman and CEO of Iridium LLC. "We believe this investment will play an important role in helping Iridium achieve its mission as the first global wireless telephone company."

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

The AIG Asian Infrastructure Fund, formed in 1994, is sponsored by AIG. The Fund, which has aggregate commitments of $1.086 billion, makes equity and convertible debt investments in infrastructure and related industries throughout Asia.

Iridium LLC has developed a global wireless communications network that combines the worldwide reach of 66 low-earth-orbit satellites with land-based wireless systems to enable subscribers to communicate using handheld telephones and pagers virtually anywhere in the world. Iridium World Communications, Ltd. (NASDAQ: IRIDF) is the public investment vehicle of Iridium LLC.

Iridium is a registered trademark and service mark of Iridium LLC (c)1998.