AIG VALIC, the nation’s leading provider of retirement plans and investments to primary and secondary education institutions, today announced it has launched a living-benefits option for new and existing owners of The Variable Annuity Life Insurance Company’s Portfolio Director(R) Fixed and Variable Annuity contract to help investors meet income-generating needs during retirement.

The new option, IncomeLOCK, is a guaranteed minimum withdrawal benefit that locks in an annuity contract’s investment gains annually and automatically for at least 10 years, creating a stream of retirement income that can only increase with the market, and never decline due to market volatility.

IncomeLOCK can provide investors with the confidence to continue to pursue growth opportunities within their annuity contracts, effectively addressing concerns that market fluctuations could reduce their investment accounts and negatively affect their retirement income. With IncomeLOCK, an investor’s income can automatically be stepped up and locked in every year if the contract’s investment performance exceeds previous anniversary values. This means an investor’s income has the opportunity to rise every year, but can never be reduced by a market downturn.

The new product option imposes no investment restrictions on investors—they have the flexibility to allocate assets to any investment options within their variable annuity, including those with greater growth potential. IncomeLOCK is a valuable new living benefit that can help our investors confidently transition from a lifetime of working and saving to a secure and comfortable retirement, said Bruce R. Abrams, President and CEO of The Variable Annuity Life Insurance Company (VALIC).

Many of our plan participants have saved diligently over their working lives and are now focused on protecting their savings while generating a stable income in retirement, noted Abrams. IncomeLOCK gives our financial advisors an effective option to address these retirement-planning concerns with their clients. Our new living benefit provides investors with the ability to lock in and protect savings, and to potentially increase their income in retirement when their annuity contract has investment gains.

Among its advantages, IncomeLOCK provides the flexibility to create a retirement income strategy that fits specific investor needs. Annuity contract owners can decide when to begin taking income, how much to withdraw each year, and how long they want the yearly income to last. For example:

— For investors with immediate income needs, IncomeLOCK enables them to take up to 5% of their Portfolio Director account immediately, providing them with withdrawals that can last for at least 20 years.

— If investors wait to begin withdrawals, IncomeLOCK enables them to increase annual income to as much as 10% of their withdrawal benefit for 10 years or more.

In addition, IncomeLOCK also provides an income that VALIC, based on its claims-paying ability, guarantees to last as long as the investor lives. Guaranteed lifetime income of 5% of their withdrawal benefit is available if investors wait until age 65 to take their first withdrawal and withdrawals are no more than the 5% maximum annual withdrawal amount.

For current Portfolio Director investors, IncomeLOCK can be added to any contract with at least $50,000 in assets as long as the owner is age 75 or younger. The living-benefit option is also available to new Portfolio Director investors who meet the minimum $50,000 investment at purchase and who are ages 75 or younger.

To receive the IncomeLOCK income benefits, an investor must adhere to the withdrawal requirements of the feature. IncomeLOCK offers the potential for a rising income stream by locking in gains as of each benefit anniversary for up to 20 years (if the client extends the feature at year 10) and this income will never decline due to market volatility while the investor is taking withdrawals over the feature’s withdrawal period.

The additional annual fee for IncomeLOCK is 0.65% of the withdrawal benefit for as long as the investor remains invested in the contract. If investors elect to extend the time period, step-ups can occur from 10 years to 20 years. The fee in effect at the time of extension, which may be higher or lower, will be charged, and the then-current parameters of the feature will go into effect.

If elected at contract issue, the withdrawal benefit includes the initial investment, plus investments made during the contract’s first two years. If added to the contract after the original contract issue date, the withdrawal benefit includes the account value at the time the benefit is added. Excess withdrawals (outside the parameters of the feature) may negatively affect the investor’s level of guaranteed income. IncomeLOCK is provided by The Variable Annuity Life Insurance Company.

AIG VALIC is one of the leading retirement plan services providers in the United States. For more than half a century, it has specialized in providing retirement programs and related investment, recordkeeping and administrative services to a variety of employer types, including for-profit and not-for-profit elementary and secondary education institutions, hospitals and healthcare organizations, higher education institutions and governmental entities. AIG VALIC serves 28,000 client groups and more than two million participants. AIG VALIC is the marketing name for the group of companies comprising VALIC Financial Advisors, Inc.; VALIC Retirement Services Company; and The Variable Annuity Life Insurance Company (VALIC); each of which is a member company of American International Group, Inc.

American International Group, Inc. (AIG), world leaders in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG’s common stock is listed in the U.S. on the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.

Securities and investment advisory services are offered by VALIC Financial Advisors, Inc. member NASD and an SEC-registered investment advisor.

To obtain a Portfolio Director contract and underlying fund prospectus, visit www.aigvalic.com or call 1-800-428-2542 (press 1, then 3). The prospectuses contain the investment objectives, risks, charges, expenses and other information about the respective investment company that you should consider carefully before investing. Please read the prospectus carefully before investing or sending money. Applicable to Portfolio Director Fixed and Variable Policy Form series UIT-194, UITG-194 and UITG-194P.

Contacts

AIG Retirement Services, Inc.

Casey Boggs, 310-772-6775