Merger Update

Prudential PLC
4 April 2001

FOR IMMEDIATE RELEASE

4 APRIL 2001

LONDON, UK - Prudential plc has reviewed American International Group, Inc.'s
press release regarding its proposal to the American General Corporation Board
of Directors. Prudential notes that its merger agreement with American General
remains in full force and effect. Prudential has no further comment at this
time.

ENQUIRIES:

Rebecca Burrows (Investors)

[phone]

Geraldine Davies (Media)

[phone]

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:
[phone]).