New Issue: Merrill Lynch prices $130 million protected notes linked to three currencies for AIG

By Susanna Moon

Chicago, Jan. 22 - American International Group, Inc. priced $130 million of zero-coupon principal-protected notes due Feb. 4, 2009 linked to a basket of Asian currencies via Merrill Lynch & Co., according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes equal weights of the Malaysian ringgit, the Indonesian rupiah and the South Korean won.

The payout at maturity will be par of $10 plus 105% of any appreciation in the basket relative to the dollar. If the basket remains flat or falls against the dollar, the payout will be par.

Issuer:	American International Group, Inc.
Issue:	Principal-protected notes
Underlying basket:	Equal weights of Malaysian ringgit, Indonesian rupiah and South Korean won
Amount:	$130 million
Maturity:	Feb. 4, 2009
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus 105% of any basket gain against the dollar; floor of par
Pricing date:	Jan. 15
Settlement date:	Jan. 23
Underwriter:	Merrill Lynch & Co.
Fees:	1%

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