NEW YORK, July 2, 1998 – American International Group, Inc. (AIG) has announced that Ernest T. Patrikis, First Vice President of the Federal Reserve Bank of New York and the Bank’s second ranking officer, will join AIG as Special Adviser to the Chairman on Regulatory Matters. In his new role, Mr. Patrikis will report directly to AIG Chairman M.R. Greenberg.

Mr. Patrikis comes to AIG following a 30-year career with the Federal Reserve Bank of New York. In addition to his position as First Vice President, Mr. Patrikis also served as an alternate member of the Federal Open Market Committee, the Federal Reserve’s monetary policymaking group. Earlier in his career, he held positions as General Counsel and Executive Vice President at the Bank. He also served as Deputy General Counsel of the Federal Open Market Committee for five years. Mr. Patrikis holds a J.D. degree from Cornell Law School and a B.A. degree from the University of Massachusetts. He is a member of the American and New York State Bar Associations and the Association of the Bar of the City of New York. Mr. Patrikis has also served as a member of the staff of the President’s Working Group on Financial Markets and as a member of the Committee on Payments and Settlement Systems of the G-10 central bank governors.

Commenting on Mr. Patrikis’ appointment, Mr. Greenberg said, “I am delighted that Ernie Patrikis is joining AIG, where he will fill an extremely important role advising me and our senior management on regulatory and compliance issues, particularly with respect to our financial services businesses. Ernie’s outstanding career at the New York Fed puts him in a unique position to carry out this senior role at AIG. He brings talents and experience that will serve us well in implementing our future growth strategies.”

William J. McDonough, President of the Federal Reserve Bank of New York, also commented, “It would be difficult to overstate the contribution that Ernie Patrikis has made to The New York Fed and the Federal Reserve System. He has a superb knowledge of the payments system and banking regulation, matched by an energy and intelligence that have made him a leader in his field.”

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AIG is the leading U.S.-based international insurance organization and among the largest underwriters of commercial and industrial insurance in the United States. Its member companies write property, casualty, marine, life and financial services insurance in approximately 130 countries and jurisdictions, and are engaged in a range of financial services businesses. American International Group, Inc.’s common stock is listed on the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.

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