AIG receives SEBI approval to start Asset Management operations in India

Mumbai, February 14, 2007: American International Group, Inc. today received regulatory approval from the Securities and Exchange Board of India (SEBI) to start its wholly-owned asset management operations and mutual fund business in India. The license for the same has been granted to AIG Global Asset Management Company (India) Pvt. Ltd., a member company of AIG Global Investment Group, to act as the Investment Manager of AIG Global Investment Group Mutual Fund.

The senior management team appointed to spearhead the asset management operations of AIG Global Investment Group in India is led by Mr. Saurabh Sonthalia as Chief Executive Officer with Mr. Tushar Pradhan as Chief Investment Officer, Equities and Mr. Sridhar Narayan as Chief Investment Officer, Fixed Income.

Speaking on the occasion Mr. Sunil Mehta, Country Head and Chief Executive, India, American International Group, Inc. said, “We are pleased to receive the Asset Management approval from SEBI. Our vision is to create a world class asset manager in India that combines AIG Global Investment Group’s global expertise with our local experience gained over the years and the track record of our experienced and professional management team. This reaffirms AIG’s commitment and participation in the fast growing Indian economy. AIG now has presence in Insurance, Consumer Finance, Real Estate Development, Aircraft Leasing and now in Asset Management. AIG plans to be a significant and responsible player in each of these businesses in India.

Mr. Ravi Mehrotra, Managing Director and Head of Asia Asset Management Companies said, “We believe that the mutual fund industry in India, which has grown at a CAGR of over 26% over the last 5 years, offers a tremendous opportunity given the retail savings potential and growth momentum of the markets in India. Our India strategy will focus on leveraging our global best processes with a strong research based investment approach towards investing. Our team comprises many of the country’s most experienced and high-quality investment professionals. We are confident that with our strong management team, prudent investment strategies and sound industry experience, we are well positioned to create a significant footprint in the mutual fund space.

“AIG Global Investment Group (AIGGIG)”

AIG Global Investment Group (AIGGIG) is a worldwide leader in asset management, with extensive capabilities in equity, fixed income, multi-manager hedge funds, private equity and real estate. AIGGIG manages more than US $670 billion in assets, and employs over 1800 professionals in 44 offices around the world (as of December 31, 2006). AIGGIG comprises a group of international companies which provide investment advice and market asset management products and services to clients around the world. The member companies of AIGGIG are subsidiaries of American International Group, Inc.

“American International Group, Inc. (AIG) ”

American International Group, Inc. (AIG), world leaders in insurance and financial services, is one of the largest, most financially strong and stable groups in the world with operations in more than 130 countries and jurisdictions. AIG’s global businesses include General Insurance, Life Insurance & Retirement Services, Asset Management and Financial Services. AIG has a market capitalization in excess of USD 180 billion (as on December 31, 2006) and its common stock is listed in the New York, London, Paris, Switzerland and Tokyo Stock Exchanges.

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