American International Assurance Company (Bermuda) Limited

July 3, 2006, Hong Kong – American International Assurance Company (Bermuda) Limited (AIA) today launched a new medical insurance plan, "Health 100", aiming to relieve the lifelong burden of medical costs and enabling customers to enjoy their life to the fullest.

Mr. Stephen Lee, Vice President of AIA's Accident and Health Department said, "According to the results of the AIA "Life Matters" survey, 50% of Hong Kong people in 2005 think they have sufficient coverage against health and medical risks, while only 10% of the working population have employer-provided hospital stay benefits. With the growing aging population and ever-increasing medical costs, as well as the reduction of resources in the government healthcare system, Hong Kong people will bear a heavier burden of medical costs. To help customers prepare for the huge burden of medical expenses in the future, AIA has specially designed a new medical insurance plan, "Health 100". Comprising a number of unique features, it offers customers lifelong health protection.

This new plan is tailored for customers between the ages of 5 and 60. In case of hospitalization, the insured is entitled to hospital cash benefits. Extra benefits for Intensive Care Unit or Burn Centre admission, long-term hospitalization, critical illness hospitalization as well as post-surgery home nursing and pre/post-hospitalization outpatient treatment are covered. If the insured undergoes medically necessary surgery during his/her hospital stay, surgical expenses reimbursement benefits are also provided.

"Health 100" provides full coverage for a wide range of medical expenses. With just 20 years or less of premium payments, customers will receive comprehensive medical coverage up to the age of 100 with the maximum Lifetime Amount of Cover reaching up to US$500,000. Furthermore, in the event of death, disability or confirmation of suffering from a terminal illness, up to 150% of total premiums paid will be refunded to the insured. AIA guarantees a fixed premium during the whole payment period, which allows customers to enjoy better management of their finances.

With the quality and comprehensive coverage offered by "Health 100", life will be easier and more secure. To celebrate the longevity of the insured, up to 150% of total premiums paid will be offered upon maturity of the policy on the day of his/her 100th birthday. In addition, surrender value is available from as early as after 6 completed policy years in case of urgent financial need.

Mr Lee added, "Lifetime medical protection is of growing importance to Hong Kong people. To better secure the quality of life and lower the risk of high medical costs in the future, people should carefully select a medical insurance plan at the younger ages that suits their needs and provides sufficient coverage."

Starting from today to August 15, the first 1,000 successful applicants of "Health 100" will receive a Healthcare Kit for free.

AIA is Southeast Asia's largest life insurer, with branch offices, subsidiaries and affiliated companies located in countries and jurisdictions including Australia, Brunei, China, Guam, Hong Kong, India, Indonesia, Japan, Macau, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam. AIA markets a full line of life insurance products through a multi-channel distribution system, whose core franchise is an extensive agency force. AIA is a wholly-owned subsidiary of American International Group, Inc. (AIG), the world's leading international insurance and financial services organization.