AIG SunAmerica Announces Agreement with Ibbotson Associates Advisors,

    Business Editors

    LOS ANGELES--(BUSINESS WIRE)--March 21, 2005--

    New Seasons Variable Annuities Are the First Tax-Deferred Vehicles
    to Offer Institutional Investment Techniques to Retail Investors
    Within a Fund-of-Funds Approach

    AIG SunAmerica Retirement Markets, Inc. today announced that it has entered into an agreement with Ibbotson Associates Advisors, LLC to introduce a new group of annuity-based investment options. The new Seasons family of variable annuities offers retail investors a tax-deferred vehicle that incorporates the disciplined investing techniques of America's largest institutions within a fund-of-funds approach. Ibbotson will also serve as the subadvisor to a fund-of-funds in a variable annuity.
    AIG SunAmerica's Seasons Variable Annuities feature four new Managed Allocation Portfolios that provide investors with the benefits of multiple layers of diversification - asset class, investment style and individual money management talent - along with the disciplined practices of strategic asset allocation and regular portfolio monitoring and rebalancing.
    The Managed Allocation Portfolios combine the asset allocation expertise of Ibbotson Associates Advisors, LLC with the multi-managed equity portfolios available to Seasons investors. These equity portfolios, which incorporate a number of complementary passive and active investing techniques and styles, will be allocated by Ibbotson in different combinations to each of the four Managed Allocation Portfolios, producing four fund-of-funds with distinct sets of risk and reward characteristics.
    "AIG SunAmerica's four new Managed Allocation Portfolios represent a solid investment choice for many individuals preparing for retirement," said Jana Waring Greer, President, AIG SunAmerica Retirement Markets. "The innovative design, modeled on the investment strategies successfully employed for decades by large institutional investors, delivers a broadly diversified portfolio that represents a disciplined approach to investing and eliminates short-term, emotional performance-chasing. We believe it is going to change the landscape of our industry."
    "We have always advocated an investment approach that eliminates the emotion of the moment and replaces it with disciplined decision-making techniques that have stood the test of time," said Michael Henkel, President of Ibbotson Associates Advisors. "These new fund-of-funds portfolios incorporate institutional investment techniques designed to produce the long-term returns for a given level of risk."
    A recent study by employee benefits firm Watson Wyatt Worldwide ("Defined Benefit vs. 401(k)," October 2004), revealed that over the five-year period from 1995 to 2001, the investment results of the largest private pension plans outpaced those of individual 401(k) participants by 1% a year - a difference that compounded over 30 years could produce dramatic differences in retirement income.
    AIG SunAmerica Retirement Market's new Managed Allocation Portfolios in the Seasons variable annuities are designed to bring institutional investment techniques to retail investors. AIG SunAmerica Retirement Markets' Seasons Select and Focused Portfolios will serve as the underlying equity investments for the Managed Allocation Portfolios; each of the equity Select Portfolios combines an indexed manager with two active managers who have complementary investment styles. The Focused Portfolios incorporate a concentrated, multi-managed approach that combines the ten best stock picks of each of three separate and distinct managers.
    AIG SunAmerica Retirement Markets, Inc. is a financial services company specializing in retirement strategies. The company provides nearly seven million Americans with retirement savings and investment products from subsidiaries of AIG Retirement Services, Inc. which comprise the AIG SunAmerica life companies, one of the largest issuers of fixed and variable annuities through a national distribution network of registered representatives, independent broker-dealers, securities firms, banks and insurance agencies.
    Ibbotson Associates Advisors, LLC is a wholly owned subsidiary of Ibbotson Associates. Ibbotson Associates, founded by Professor Roger Ibbotson in 1977, is a leading authority on asset allocation, providing products and services to help investment professionals obtain, manage and retain assets. The company's business lines include investment and cost of capital consulting and research; planning and analysis software; wealth forecasting; educational services and a widely used line of NASD-reviewed presentation materials. With offices in Chicago, New York and Tokyo, Ibbotson Associates provides integrated investment knowledge, leading-edge technology, multi-conceptual education and a variety of sales presentation solutions. Ibbotson markets its integrated product line of investment analytical tools and services to institutional money managers, plan sponsors and consultants for quantitative analysis, high-level decision-making and presentations. The company's clients also include financial planners, brokers, mutual fund firms, private bankers and small money managers.
    American International Group, Inc. (AIG) is the world's leading international insurance and financial services organization, with operations in approximately 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 financial services, retirement services and asset management. AIG's financial services businesses include aircraft leasing, financial products, trading and market making. AIG's growing global consumer financial 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--MEM/ny*

CONTACT: AIG Retirement Services, Inc. Casey Boggs, 310-772-6775

KEYWORD: CALIFORNIA NEW YORK INDUSTRY KEYWORD: INSURANCE BANKING PRODUCT MARKETING AGREEMENTS SOURCE: American International Group, Inc.

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