(May 29, 2007, Taipei) In response to the increasingly longevity of global population, SinoPac Holdings and AIG Group of the USA hold a signing ceremony today (29th) and announce its strategic alliance. The two top-class financial service companies will joint force in Taiwan's pension fund market, such partnership can not only enhance the quality of financial planning services for retirees, but also create a win-win situation for both financial service powerhouses in Taiwan.

All nations around the world is now facing a common phenomenon which is the aging of its population; given the medical advancement, we can foresee that such trend will have a great impact in our living environment, and will case serious social problems in the future.

From Taiwan's perspective, the number of senior citizens is increasing rapidly as well. If we observe from Taiwan's present population structure, we need to reserve a pension fund which is 1.3 times of our GDP. However, the size of our pension fund now is less than 0.1 times of Taiwan's GDP. Hence, the market has robust growth potential.

SinoPac Holdings, a financial holding company with a total asset over NT$1,000 billion, is aggressively expanding its wealth management business and full-fledge financial planning services for retirees. AIG is the market leader in insurance and financial service, with presence in more than 130 countries and geographic locations, AIG is the number one international insurance company in the world. AIG Group is the most prominent player in pension fund management service, financial service, and asset management in markets around the globe.

On the other hand, Bank SinoPac, a member of SinoPac Holdings, has 129 branches island-wide, in which 93 branches are located in the Taipei city and county. Other outlets are situated in major cities and prime locations in Southern Taiwan. SinoPac's strong network provides AIG's customers with quality service and multiple distribution channels. For AIG, a global conglomerate that is fully committed to Taiwan market, the collaboration with SinoPac Holdings can indeed generate a solid foundation for growth.

Therefore, after a year long of communication and negotiation, SinoPac Holdings and AIG have decided to form a strategic alliance to exchange expertise in product development and asset management of pension funds. Both parties hold an official signing ceremony to announce full cooperation in offering financial planning services to retirees' base on mutual trust, mutual assistances, and common interests.

Going forward, SinoPac Holdings and AIG will develop products and skills that are suitable for the Taiwan's pension fund market. The two companies will become business partners and offer exclusive rights to each other. Starting from the day of signing, bankers from both sides will joint force in designing saving and retirement related products. It is estimated that financial solutions that are suitable for Taiwan's retirement market will be available in the second half of this year.

As for the financial services targeting on retirees, SinoPac Holdings and AIG will leverage all professional resources and set forth an effective business plan that enables customers to access an array of integrated financial products and services through the unmatched footprint of SinoPac Holdings. At the same time, as for the asset management business, SinoPac Holdings and AIG will facilitate exchanges in investment management, mutual fund selection, and structured product management, aiming at managing the assets for the retirees.