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NEWS                                                                 [AIG LOGO]

Contact:      Charlene Hamrah (Investment Community)
              212/770-7074

              Joe Norton (News Media)
              212/770-3144

                 AIG NAMES ARTHUR LEVITT SPECIAL ADVISOR TO ITS
                       BOARD OF DIRECTORS AND THE BOARD'S
                 NOMINATING AND CORPORATE GOVERNANCE COMMITTEE

NEW YORK, July 5, 2005 - American International Group, Inc. (AIG) announced
today that Arthur Levitt has been named a special advisor to its Board of
Directors and the Board's Nominating and Corporate Governance Committee. Mr.
Levitt's duties will include advice with respect to potential nominees for
election to the board, as well as board procedures, structure and governance
issues.

      Mr. Levitt served as the Chairman of the United States Securities and
Exchange Commission 1993-2001. He was the longest serving Chairman in the
history of the SEC, and during his tenure, worked to educate, empower and
protect America's investors. From 1989 to 1993, he served as the Chairman of the
New York City Economic Development Corporation, and from 1978 to 1989, he was
the Chairman of the American Stock Exchange. Prior to joining the Amex, Mr.
Levitt worked for 16 years on Wall Street. Mr. Levitt served on the Conference
Board Commission on Public Trust and Private Enterprise. He graduated from
Williams College, where he was a member of Phi Beta Kappa, in 1952 before
serving for two years in the Air Force.

      Frank G. Zarb, AIG interim Chairman and Lead Director said, "Mr. Levitt is
a corporate governance expert with significant experience in government and the
private sector. I am confident he can make a strong contribution to AIG's
efforts to enhance its corporate governance practices and policies."

      Martin J. Sullivan, AIG President and Chief Executive Officer, said "AIG
is implementing several significant initiatives to ensure that we have best
practices in corporate governance. To further this important objective, AIG's
Board and management will be working closely with Mr. Levitt, who brings a
wealth of experience and knowledge to this role. He will advise AIG on a wide
range of corporate governance matters, work with AIG as it seeks to recruit the
best qualified directors to represent all AIG shareholders and assist AIG as it
reaches out to all of its shareholders. AIG is a leader in its major businesses
in the United States and around the world, and it is only natural that we would
work to take a leadership role in key areas of governance."

                                    #  #  #

      American International Group, Inc. (AIG), world leaders in insurance and
financial services, is the leading international insurance organization with
operations in more than 130 countries and jurisdictions. AIG companies serve
commercial, institutional and individual customers through the most extensive
worldwide property-casualty and life insurance networks of any insurer. In
addition, AIG companies are leading providers of retirement services, financial
services and asset management around the world. AIG's common stock is listed in
the U.S. on the New York Stock Exchange and ArcaEx, as well as the stock
exchanges in London, Paris, Switzerland and Tokyo.

                                    #  #  #

                       American International Group, Inc.
                       70 Pine Street, New York, NY 10270