RE AMERICAN GENERAL

Prudential PLC
11 May 2001

11 May 2001




AMERICAN GENERAL PAYS PRUDENTIAL PLC $600 MILLION



Prudential announces that it has agreed to terminate its merger agreement
dated 11 March 2001 with American General Corporation of Houston, Texas, USA.
In consideration for Prudential agreeing to do so, American General today made
an immediate payment to Prudential of the full termination fee of $600
million.



                                   - Ends -


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