Board Announcement

Prudential PLC
16 March 2001

Friday 16 March 2001

PRUDENTIAL PLC BOARD ANNOUNCEMENT

Prudential plc announces that Bridget Macaskill, a non-executive director of
the company, has resigned today.

Ms Macaskill is Chairman and Chief Executive Officer of OppenheimerFunds Inc,
a subsidiary of MassMutual Financial Services Group. In the light of
Prudential's announced intention to merge with American General Corporation
and as AGC and MassMutual compete in the same markets, Ms Macaskill has
regretfully concluded that she should resign her position as a non-executive
director of Prudential to avoid any potential conflict of interest.

Sir Roger Hurn, Chairman of Prudential plc, said:

'We are very sad that Bridget Macaskill is leaving the Board. I would like to
thank her for the tremendous contribution she has made to the Group. We will
miss her and her wise counsel.'

Ms Macaskill commented:

'The unanimous decision of the Prudential board to recommend the merger with
American General is clearly in the best interest of its shareholders and I
wholeheartedly support it. I wish Prudential and the proposed merger every
success.'

                                   - ENDS -

Press Enquiries:                      Analyst Enquiries:

Geraldine Davies                      Rebecca Burrows

020 7548 3911                         020 7548 3537

Prudential plc and American General Corporation will be filing a proxy
statement/prospectus and other relevant documents concerning the proposed
transaction with the SEC. INVESTORS ARE URGED TO READ THE PROXY STATEMENT/
PROSPECTUS WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED
WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ON THE PROPOSED
TRANSACTION. Investors will be able to obtain the document free of charge at
the SEC's website (www.sec.gov). In addition, the proxy statement/prospectus
and other relevant documents concerning the proposed transaction and filed
with the SEC may be obtained free of charge by contacting Prudential plc,
Laurence Pountney Hill, London, EC4R 0HH, England, Attention: Investor
Relations (tel. [phone]), and American General Corporation, 2929
Allen Parkway, Houston, Texas, 77019, Attention: Investor Relations (tel. (+1
713) 522-1111).