AIG Announces Treasury Expects $750 Million in Additional Proceeds from AIG Common Stock Offering

American International Group, Inc.

announced that the U.S. Department of the Treasury expects to receive an additional $750 million from its underwritten public offering of AIG common stock. The underwriters have exercised their over-allotment option in full to purchase 24,590,164 additional shares of AIG common stock at the public offering price of $30.50 per share. On August 3, 2012, Treasury had priced an offering of 163,934,426 shares of its AIG common stock at the public offering price of $30.50 per share. In connection with Treasury's offering, AIG agreed to purchase 98,360,656 shares of AIG common stock in the offering at the public offering price for an aggregate purchase amount of approximately $3.0 billion. Combined with the exercise of the over-allotment option, Treasury's proceeds from the public offering are expected to be approximately $5.75 billion and the total number of shares sold in the offering is expected to be approximately 188.5 million. The offering is expected to reduce Treasury's remaining investment in AIG to approximately 871.1 million shares of common stock; and reduce Treasury's percentage ownership of AIG's outstanding shares of common stock from 61 percent to approximately 53 percent. When this offering is completed, it is anticipated that Treasury will have sold approximately 784 million shares of AIG common stock since May 2011 for total proceeds of approximately $23.3 billion. Treasury also announced that in addition to principal repayments, the Federal Reserve and Treasury have also received additional income beyond that from interest, fees, and other gains. That additional income beyond principal repayments totals $14 billion, including approximately $13 billion from the Federal Reserve's investment and approximately $1 billion from Treasury's investment.