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<div class=Section1>
<p class=MsoNormal style='text-autospace:none'><span style='font-size:10.0pt;
font-family:"Arial","sans-serif"'>From Kim Heffernan</span><span
style='font-size:12.0pt;font-family:"Arial","sans-serif"'><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><o:p> </o:p></span></p>
<p class=MsoNormal style='margin-top:6.0pt;mso-para-margin-top:.5gd'><span
style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Recent developments
in the U.S. financial markets have been truly extraordinary. VALIC’s
parent, AIG, has gotten a lot of media attention in regards to its position in
the current environment. <o:p></o:p></span></p>
<p class=MsoNormal style='margin-top:6.0pt;mso-para-margin-top:.5gd'><span
style='font-size:10.0pt;font-family:"Arial","sans-serif"'>We have information
from VALIC for employees currently participating or considering participation
in the VALIC’s 403(b) : <o:p></o:p></span></p>
<p class=MsoNormal style='margin-top:6.0pt;mso-para-margin-top:.5gd'><span
style='font-size:10.0pt;font-family:"Arial","sans-serif"'><o:p> </o:p></span></p>
<p class=MsoNormal style='margin-left:9.35pt;text-indent:-9.35pt'><b><u><span
style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Is My Money Safe?<o:p></o:p></span></u></b></p>
<ol style='margin-top:0in' start=1 type=1>
<li class=MsoNormal style='margin-top:6.0pt;mso-para-margin-top:.5gd;
mso-list:l0 level1 lfo1'><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Yes.
<a name="OLE_LINK2"></a><a name="OLE_LINK1"></a> VALIC is financially
strong with $<span style='color:black'>3.4 billion in adjusted capital and
surplus as of 6</span>/30/08. VALIC’s capital and surplus are
completely separate from our ultimate parent, AIG.<o:p></o:p></span></li>
<li class=MsoNormal style='margin-top:6.0pt;mso-para-margin-top:.5gd;
mso-list:l0 level1 lfo1'><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>FIXED:
VALIC client assets in the guaranteed fixed investment options are
protected by Texas state insurance regulations. The fixed options
provide fixed rate earnings and a guarantee of principal. This
guarantee is backed by the “general account” of VALIC, which
supports only the obligations of VALIC, not any obligations of AIG.<o:p></o:p></span></li>
<li class=MsoNormal style='margin-top:6.0pt;mso-para-margin-top:.5gd;
mso-list:l0 level1 lfo1'><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>VARIABLE:
Client assets in the variable account options, which include variable
annuities and mutual funds, are invested in mutual funds regulated by the
SEC. A mutual fund’s assets are owned by its shareholders and
managed by a professional portfolio manager; thus, such funds are not
affected by business actions involving AIG or AIG Retirement.<o:p></o:p></span></li>
</ol>
<p class=MsoNormal style='mso-margin-top-alt:6.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.75in;margin-bottom:.0001pt;mso-margin-top-alt:.5gd;mso-para-margin-right:
0in;mso-para-margin-bottom:0in;mso-para-margin-left:.75in;mso-para-margin-bottom:
.0001pt;text-indent:-.25in;mso-list:l1 level1 lfo2'><![if !supportLists]><span
style='font-size:10.0pt;font-family:"Arial","sans-serif"'><span
style='mso-list:Ignore'>a.<span style='font:7.0pt "Times New Roman"'>
</span></span></span><![endif]><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Further,
Texas state law requires insurance company separate accounts to be held apart
from the rest of the company assets. Therefore, the separate account assets in
these mutual funds are held for the exclusive benefit of the clients and their
beneficiaries. This insulation provides safety for each client, and ensures
that the account is not subject to claims from any person or entity other than
a contract owner, plan participant or beneficiary.<o:p></o:p></span></p>
<p class=MsoNormal style='mso-margin-top-alt:6.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.75in;margin-bottom:.0001pt;mso-margin-top-alt:.5gd;mso-para-margin-right:
0in;mso-para-margin-bottom:0in;mso-para-margin-left:.75in;mso-para-margin-bottom:
.0001pt;text-indent:-.25in;mso-list:l1 level1 lfo2'><![if !supportLists]><span
style='font-size:10.0pt;font-family:"Arial","sans-serif"'><span
style='mso-list:Ignore'>b.<span style='font:7.0pt "Times New Roman"'>
</span></span></span><![endif]><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>This
also means that client investment returns depend on the performance of the
individual investment funds the client selected and not on the performance of
AIG or AIG Retirement.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>For
further information on VALIC, please go to <a
href="http://www.aigretirement.com">www.aigretirement.com</a> or contact your
VALIC representative, Marschon Blackwell, at 800-892-5558.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><o:p> </o:p></span></p>
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