Hong Kong, September 20, 2004 – American International Assurance Company (Bermuda) Limited (AIA) today launches three Target Saver plans that combine life protection and high guaranteed returns. These plans are available to newborns and for customers up to the age of 65 years.

Setting an industry record on sales, Target Saver Series from AIA received an overwhelming market response when these were launched in 2002 and 2003. “The new Target Saver plans provide more choices on savings period for our customers to better cater to their various financial planning needs at different stages in life,’’ said Jacky Chan, Vice President and Assistant General Manager at AIA.

"Target Saver plans offer cash dividends and attractive returns by employing a capital reserve strategy.This can assist our customers to accomplish various financial objectives in 10 to 20 years. For instance, a female aged 30 with sum assured of US$50,000 for Target Saver, the guaranteed return of the plan will reach 2.39% p.a. at the end of the 20^th year. According to figures from the Hong Kong Monetary Authority, the total deposits (in different forms) with financial institutions in June 2004 amounted to more than HK$3,500 billion – these deposits definitely need to find investment outlets. We are confident that AIA Target Saver plans will be well received by the market.’’

Customers applied the new Target Saver plans are offered a wide range of choices for different saving periods in either 10 years, 16 years or 20 years while the premium payment period is 7 years, 10 years or 15 years respectively. If death occurs while the plan is in force, the face amount as well as the accumulated dividends will be paid to the beneficiary. The annualized premium paid will also be refunded in full. Among the three new Target Saver plans, Target Saver 10-year savings plan is only available for application from September 20 to November 30, 2004.

Furthermore, Target Saver plans offer 365 days free extension of grace period in case a policyholder faces unemployment (under the rules & definition of severance payment of Hong Kong & Macau Labour Code) so as to provide flexibility to the policyholders. Benefits on free waiver of premium in case of disability and terminal illness advance payment are also available.

From now on until November 30, 2004, customers who successfully apply for Target Saver will automatically enter into the Free Spending & Stuffing Lucky Draw. Prizes include free spending credit card credits up to HK$50,000 and Grand Hyatt Vouchers worth more than HK$360,000.

AIA is Southeast Asia’s largest life insurer, with branch offices and affiliated companies located in countries and jurisdictions including China, Hong Kong, Macau, Malaysia, Thailand, Singapore, Brunei, Guam, Indonesia, Vietnam, India, Taiwan, the Philippines, Japan, Korea, Australia and New Zealand. The Company has been assigned ‘AAA’ insurer financial strength rating by global credit rating service Standard & Poor’s. In Hong Kong, AIA has also been assigned ‘Aaa’ the highest rating, by premier financial rating agency Moody’s. AIA is a wholly-owned subsidiary of American International Group, Inc. (AIG), the world’s leading international insurance and financial services organization.