AIG SunAmerica Benefit First to Combine Upside Potential of Equity Markets with Guaranteed Rising Retirement Income Even When Investors Take Withdrawals

Business Wire, June 5, 2008

MarketLock Income Plus Option in Select Variable Annuities Locks in Market Gains or Annual Income Credit for up to 15 Years

LOS ANGELES -- AIG SunAmerica Retirement Markets, Inc. today announced an industry first with the introduction of MarketLock Income Plus - an optional withdrawal benefit in select AIG SunAmerica variable annuities that provides investors with the upside potential of the equity markets and lifetime income that's guaranteed to increase for up to 15 years - even in years when withdrawals are taken or the market declines.

"Today's economic conditions and market volatility have many investors looking for solutions to help them retire stronger by providing the income they need to help keep up with rising costs," said Jana Waring Greer, President of AIG SunAmerica Retirement Markets, Inc. "We have found that nearly 85% of investors over the age of 50 want strategies that can deliver rising income - when and how they need it - regardless of what happens in the markets. By providing the assurance that lifetime income can grow even after retirees start taking income, AIG SunAmerica is at the forefront of the industry in meeting this need."

MarketLock Income Plus was designed for investors who need income right away or in the near future, but also want their income to continue to grow and last for the rest of their lives. MarketLock Income Plus is a guaranteed minimum withdrawal benefit (GMWB) that automatically "locks in" an investor's market gains or an annual income credit of up to 7%, whichever is greater. Unlike other GMWBs on the market today, MarketLock Income Plus offers investors an annual income credit even in years in which they take withdrawals. For example, if an investor takes a 5% withdrawal, this percentage is simply deducted from the 7% annual income credit on the next contract anniversary. Thus, an investor's income goes up 2% even if the market is flat or drops, and it will not go down due to market volatility.

Other features of MarketLock Income Plus include:

* A minimum floor for retirement income that is equal to 200% of their eligible first-year investments for investors who do not take any withdrawals during the first 10 contract years

* Annual income credit available for up to 15 years

* Market gains that are locked in for rising income until at least age 85, for clients who elect to extend the feature at five-year intervals

* Guarantees backed by the claims-paying ability of AIG SunAmerica Life Assurance Company

"For most Americans today, retirement is not the same as it was just a generation ago," said Rob Scheinerman, Senior Vice President of Product Management for AIG SunAmerica Retirement Markets, Inc. "People are discovering they need flexibility in their withdrawal strategies, and that they cannot rely on a fixed income to maintain their lifestyles well into retirement. MarketLock Income Plus gives today's retirees access to the upside potential of the market, protection from market downturns and guaranteed annual increases for their retirement income - even while they're taking withdrawals."

MarketLock Income Plus' investment selection includes a choice of model allocations, balanced portfolios or a cash management portfolio. To realize the benefits of the MarketLock Income Plus option, clients must take withdrawals within the parameters of the feature. Depending on the performance of their investment, clients may never need to rely on the protection provided by this optional insurance feature available for an additional fee.

New research sponsored by AIG SunAmerica and conducted by Harris Interactive has found that 82% of Americans aged 50 and over are concerned about annual increases in their living expenses. The rising cost of healthcare topped the list of concerns, followed by the impact of inflation, and worries about the reliability of the Social Security system. Despite these concerns, the research also revealed that 43% of people in the 50 plus age group do not have an income strategy in place to maintain their standard of living into retirement. This discrepancy underscores the tremendous market now developing for innovative financial products that can effectively address the cost of living concerns of investors as they approach retirement.

The America Speaks Out 2008 Retirement Income Survey was conducted online within the United States by Harris Interactive between May 2-6, 2008 among 2,203 U.S. adults aged 50 and over. Results were weighted as needed for age, sex, race/ethnicity, education, region and household income. Propensity score weighting was also used to adjust for respondents' propensity to be online. Respondents for this survey were selected from among those who have agreed to participate in Harris Interactive surveys. The data have been weighted to reflect the composition of the U.S. adult population. Because the sample is based on those who agreed to be invited to participate in the Harris Interactive online research panel, no estimates of theoretical sampling error can be calculated. For more information on America Speaks Out: 2008 Retirement Income Survey, visit http://141.150.158.38/AIGSunAmericaHarrisSurvey.pdf.>