PHILAM PLANS WIDENS LEADERSHIP IN 2004

For the third consecutive year, Philam Plans, Inc. retained the No. 1 position among the pre-need companies in Philippines -- proof that Philam Plans is the most trusted pre-need company by Filipinos. Philam Plans registered leadership in overall sales, pension and education - backed by the largest trust fund in the pre-need industry.

Trust Fund Growth

As of end-December 2004, Philam Plans' trust fund grew by about +40% to P14.3 Billion. Trust funds are the source of the future benefit payments of pre-need companies. Philam Plans' trust fund is highly liquid, with 80% in government securities and cash equivalents. The fund is managed by a consortium of the most reputable and professionally-run banks in the country today: Deutsche Bank, Equitable-PCI Bank, Philam Savings Bank and Security Bank.

Consistent Record of Benefits Paid

Jose L. Cuisia Jr., Philam Plans Chairman of the Board, said, "All the Philam companies stand by their commitments to our customers - an unbroken record of promises kept, and continuing on to the future."

Philam Plans will pay out P574 Million education, pension and life memorial benefits to its planholders in 2005. Moreover, for the period 2006-2011, future benefit payments amounting to P9.8 Billion are scheduled to be paid-out. These benefits can be easily drawn from within the present level of trust funds.

According to the 2004 Actuarial Advisers Year-end Report, Philam Plans' market share increased to +26%, fueled by P9.6Billion in sales, representing a growth of +36% versus the previous year . A total of 71,000 new plans were written in 2004.

In education plans, Philam Plans generated sales of P3.9 Billion, representing a commanding 30% market share for the category. This is expected to further widen as more and more parents entrust their children's education with Philam Plans.

In the pension market, Philam Plans continued its dominance for the sixth consecutive year. Philam Plans sold P5.2 Billion in pension products, representing a market share of 27%. This strong performance was achieved through new products, distribution channel expansion and innovative marketing.

Reputation of Reliability and Financial Strength

"We appreciate the trust and confidence given to Philam Plans by the public", says PPI President and CEO Jesus G. Hofilena. "We are more committed to preserve our company's excellent reputation for reliability and financial strength."

Philam Plans is a wholly owned subsidiary of the Philippine American Life and General Insurance Company (Philamlife), the No. 1 life insurance company in the country. Philamlife, the largest and most diversified insurance company in the Philippines, reported a record P12.3 billion in Total Premium Income in 2004, a strong +21% growth versus 2003. Gross Revenue and Total Assets reached record highs of P20.8 Billion and P88.9 Billion, respectively.

Strong Performance of Philam Group Affiliates

Philamlife's other subsidiaries and affiliates also did very well in 2004. Philamlife's newest affiliate, Philam Equitable Life Assurance Company (PELAC), contributed P939 Million worth of new business revenue. Philam Asset Management Inc. (PAMI) posted a +29% growth in Assets Under Management (AUM), a +32% increase in gross revenues and a +38% increase in Net Income. Philam Care, almost doubled its profit with a recorded Net Income of P101 Million, +92% versus last year. AIG Card Net Income also grew a respectable 8.5%.