Fitch's Actions on AIG Currently Not Affecting State Housing Bonds.

NEW YORK -- Fitch Ratings' recent actions on American International Group Inc. (AIG) will not affect the ratings of state housing finance agency bonds partially supported by investment contracts of AIG Matching Fund Corp. (AIGMFC), according to the rating agency.

"The majority of the 'AAA'-rated tax-exempt housing bonds that Fitch rates are part of large parity indentures with the AIGMFC contracts only comprising a minimal portion of the investment portfolios, making the exposure to AIGMFC limited," said Vincent Barberio, Managing Director, Fitch Ratings. "Further, AIG's current 'AA+' rating still meets the requirements of Fitch's criteria for qualified investments." Fitch will continue to monitor the credit implications, if any, that the pending resolution of AIG's Rating Watch Negative may have on the tax-exempt housing bonds.

Fitch rates various programs of the following state housing finance agencies 'AAA':

-- Alaska Housing Finance Corporation;

-- Idaho Housing and Finance Association;

-- Indiana Housing Finance Authority;

-- Utah Housing Corporation.

The various AIGMFC contracts back debt service reserve funds, float funds, and/or acquisition accounts of the tax exempt housing bonds. AIGMFC contracts are guaranteed by AIG and therefore Fitch looks to the 'AA+/F1+' rating to support these contracts. The acquisition accounts are short-term in maturity and Fitch primarily utilizes AIG's 'F1+' rating for determining creditworthiness of the GIC provider's repayment obligation for these funds.

Fitch downgraded AIG's long-term issuer rating and unsecured senior debt obligations to 'AA+' from 'AAA' on March 15, 2005, and subsequently placed them on Rating Watch Negative on March 30. Both releases are also available at 'www.fitchratings.com', as is the June 30, 2004 special report, 'Counterparty Risk in Structured Finance: Qualified Investment Criteria'.