HOUSTON--(BUSINESS WIRE)--Aug. 1, 2006--AIG VALIC, a leading national provider of retirement plan services to for-profit and not-for-profit education, healthcare and government organizations, today announced that it has been selected by San Diego City Schools (SDCS) as its exclusive 457(b) retirement plan provider as well as the common-remitter for the multi-vendor 403(b) plan. SDCS is the second largest school district in California and eighth largest urban district in the United States.

For over two decades, AIG VALIC has served SDCS as a 403(b) plan provider for its 18,000 administrators, faculty and support staff. In selecting AIG VALIC for its 457(b) plan, SDCS was seeking to: adopt a low cost 457(b) plan as a partner to the existing 403(b) plan; address plan compliance issues; and assist its multilingual employees with planning for retirement.

"We are very proud of our more than 20-year relationship with San Diego City Schools and are very pleased with the opportunity to build on our existing relationship by introducing a 457(b) plan to the schools' current retirement offerings," said Bruce R. Abrams, President and CEO of VALIC and the VALIC Retirement Services Company.

AIG VALIC addressed SDCS's plan compliance concerns by introducing Retirement Manager(SM), an innovative Internet-based service platform designed to help plan sponsors simplify multi-carrier retirement plan administration for both the 457(b) and 403(b) plans. Retirement Manager is a unique service that provides plan sponsors with a variety of administrative services, including a common-remitter service, while offering plan participants a single point-of-access to comprehensive retirement plan information, financial planning tools, and inquiry and transaction capability across retirement product carriers. Plan sponsors also benefit through streamlined processes, increased plan participation/contribution rates, and reduced costs.

To address SDSC's multicultural employees, AIG VALIC has agreed to provide advisor support services with a specialization in Spanish communication and enrollment materials.

"The proposed IRS regulations are changing the landscape in K-12 retirement plan administration," said Todd Buchanan, Senior Vice President, AIG VALIC. "This latest development strengthens our relationship and provides additional proof that AIG VALIC is leading the industry in anticipating plan sponsors' and plan participants' needs and developing programs to meet those needs."

AIG VALIC is one of the leading retirement plan service providers in the United States. For more than half a century, it has specialized in providing retirement programs and related investment, recordkeeping and administrative services to employers and employees of for-profit and not-for-profit elementary and secondary education institutions, hospitals and healthcare organizations, higher education institutions and governmental entities. AIG VALIC serves 28,000 client groups and more than two million participants. AIG VALIC is the marketing name for the group of companies comprising VALIC Financial Advisors, Inc.; VALIC Retirement Services Company; and The Variable Annuity Life Insurance Company (VALIC); each of which is a subsidiary of American International Group, Inc.

Established in 1854, San Diego City Schools (SDCS) is the second largest school district in California and eighth largest urban district in the United States. SDCS serves nearly 140,000 students in over 250 educational facilities, including elementary, middle, alternative, charter and high schools. The student population is extremely diverse, representing more than 15 ethnic groups and over 60 languages and dialects.

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, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.

Securities and investment advisory services are offered by VALIC Financial Advisors, Inc., member NASD, SIPC and an SEC-registered investment advisor.

AIG Retirement Services, Inc.
John E. Pluhowski, 713-831-1149
Senior Vice President - Corporate Communications
or
AIG VALIC
Todd Buchanan, 713-831-2225
Senior Vice President, National Markets

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© Business Wire 2006