AIG Employee Benefits Announces Enhanced Group Benefits Offerings for

AIG Employee Benefits Announces Enhanced Group Benefits Offerings for Small and Middle Market Enterprises

    Business Editors

    NEPTUNE, N.J.--(BUSINESS WIRE)--Feb. 23, 2005--AIG American General today announced the launch of a new set of benefits offerings designed specifically for small and middle market enterprises. Marketed by AIG Employee Benefits, the enhanced product line has been approved in 33 states, with a variety of the enhanced products approved in an additional 17 states.
    "The small and middle market enterprise has traditionally been under-serviced by group benefits providers," said Steve Gold, President and Chief Executive Officer, AIG Employee Benefits. "Our goal with these new offerings is to bring the products and services typically reserved for large national accounts to small and middle market companies, who typically do not have the same resources as Fortune 500 companies. By working with a client's insurance broker and human resources personnel to design a benefits program that is cost effective, easy to implement and meets their specific needs, we can help companies make a real difference in their employees' lives."

    Highlights of the new programs include(a):

--	Group Life - Maximum issue amounts of up to five times the employee's salary are available. Spouse, domestic partner and children's coverage is included as an option on most plans, with child coverage beginning at live birth;
--	Group Accidental Death & Dismemberment - Available bundled with a term life plan or as a voluntary standalone product for groups of 10-plus insureds. The program includes enhanced seatbelt and airbag benefits, as well as new childcare and child education benefits, depending on the group size and plan;
--	Group Short-term Disability - Customized short-term disability benefits package designed to help employees get back to work as soon as possible;
--	Group Long-term Disability - A variety of LTD benefits options are available based on group size, including a choice of benefit percentage, elimination period, occupation period and maximum monthly benefits. Regular occupation and progressive partial disability protection is also available. Rehabilitation and educational benefits are built into most plan offerings, with a focus on return to work assistance programs;
--	Group Dental - Employees can select a PPO or indemnity plan, giving them the flexibility to choose any dentist or select a provider from the expanded AIG National Dental Network(SM). The Network includes dentists at more than 59,000 locations; and
--	Group Vision - The EyeMed Network provides access to over 25,000 independent and retail providers nationwide, including all LensCrafters(R) locations. Vision plans also include reimbursement for non-network provider services, and benefits that apply to any brand of frame (including prescription sunglasses) or contact lens. Discounts for LASIK and PRK surgeries are also available.

    To further address the needs of small- and medium-sized employers and support the new coverages, AIG Employee Benefits' initiative includes enhanced technology and service offerings to assist employers with day-to-day administration of the programs. These services include:

    -- Dedicated Client Service Teams - Seasoned employee benefits
    advisors can work closely with employers who have group plans
    covering more than 100 lives to provide proactive support and
    simplify plan renewals;

    -- Personalized Marketing Support - AIG Employee Benefits can
    provide custom marketing materials, at an additional cost, to
    employers to help drive awareness of and enrollment in the new
    benefits programs. Communications support includes
    e-campaigns, website copy and articles that focus on the
    importance of supplemental benefits programs;

    -- Medical Underwriting Tracking System - An innovative web-based
    system that streamlines the underwriting process and offers
    several features that benefit employers, including automated
    delivery of weekly status reports on coverage applications and
    enhanced reporting capabilities for agents, brokers and
    employees;

    -- Online Support - Employers and employees will gain
    password-protected access to www.AIGemployeebenefits.com,
    where they can find policy forms, product information, network
    provider listings and view recent premium statements;

    -- Language Line - With Language Line, non-English speaking
    employees' questions regarding their employee benefits are
    addressed in their native tongue via a toll-free phone call;
    and

    -- Instant Access Accounts - Special interest-bearing checking
    accounts are available for beneficiaries, making access to the
    benefit much easier for those who have suffered a loss.

    For more information on the new group benefits offerings from AIG Employee Benefits, and a list of states where the products are available, please visit www.AIGemployeebenefits.com or call Cynthia Osofsky, Senior Vice President, Marketing and Product Development, AIG Employee Benefits, 732-922-7035; cynthia_osofsky@aigag.com.

    (a) The description above is neither a complete description nor a complete list of all policy terms, conditions and exclusions. Note that certain terms used above are defined in the policy. Please see the policy for a complete description of its scope and limitations of coverage. Issuance of coverage is subject to underwriting. Insurance is underwritten by member companies of American International Group, Inc. Coverage may not be available in all jurisdictions.
    AIG Employee Benefits is the marketing brand under which group life, accidental death & dismemberment, disability, dental and vision products are offered by the insurance companies that comprise AIG American General. AIG American General is the marketing name for the insurance company subsidiaries of American International Group, Inc. (AIG) that comprise AIG's domestic life operations.

    American International Group, Inc. (AIG) is the world's leading international insurance and financial services organization, with operations in more than 130 countries and jurisdictions. AIG member companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In the United States, AIG companies are the largest underwriters of commercial and industrial insurance and AIG American General is a top-ranked life insurer. AIG's global businesses also include retirement services, financial services and asset management. AIG's financial services businesses include aircraft leasing, financial products, trading and market making. AIG's growing global consumer finance business is led in the United States by American General Finance. AIG also has one of the largest U.S. retirement services businesses through AIG SunAmerica and AIG VALIC, and is a leader in asset management for the individual and institutional markets, with specialized investment management capabilities in equities, fixed income, alternative investments and real estate. AIG's common stock is listed on the New York Stock Exchange and ArcaEx, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.

--30--KK/ny*

CONTACT: AIG Employee Benefits Division Cynthia Osofsky, 732-922-7035

KEYWORD: NEW YORK NEW JERSEY INDUSTRY KEYWORD: MEDICAL INSURANCE HUMAN RESOURCES BANKING PRODUCT SOURCE: American International Group, Inc.

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