Contacts: Bryan A. Binyon, V.P. and Treasurer

• Receivable growth
• Expense control
• Earnings increase of 21%

EVANSVILLE, IN, October 28, 1999 - American General Finance Corporation reports third quarter 1999 net income of $60 million, representing a 21% increase over the same quarter of 1998. The solid performance is attributed to asset growth, strong credit quality and expense control.

Finance receivables grew by $202 million during the quarter to total $10 billion. At September 30, 1999, the portfolio was comprised of 63% real estate loans, 25% non-real estate loans and 12% retail sales finance receivables.

Credit quality results continued to evidence management's successful implementation and application of advanced credit risk management systems. For the current quarter, the charge-off ratio was 2.02% compared to 2.44% for third quarter 1998 and 1.96% for second quarter 1999. For the nine months of 1999, the ratio was 2.04%, significantly improving on the 2.59% for the same period of the prior year. At September 30, 1999, the 60-day plus delinquency ratio increased in line with normal seasonality to 3.71% from 3.56% at June 30, 1999. The allowance for finance receivable losses at period end remained strong at 3.78% of net finance receivables.

The company continued to improve operating efficiency. While total assets increased $1.4 billion since September 30, 1998, operating expenses have increased by only $8 million year to date. As a percentage of average net receivables, operating expenses were 5.07% for the third quarter of 1999 compared to 5.98% for the same period in 1998.

Management is pleased with American General Finance's results through the three quarters of 1999. The company expects to continue growing with quality receivables while controlling operating expenses. With a strong branch network of well-trained individuals supported by advanced credit risk management systems, the company anticipates solid operating performance for the remainder of the year.

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American General Finance Corporation and its subsidiaries are engaged in the consumer finance and credit insurance business. The company, headquartered in Evansville, Indiana, has assets of $11.6 billion and operates 1,307 offices in 40 states, Puerto Rico, and the U.S. Virgin Islands. Products and services are provided to more than 2 million American families. The company offers direct consumer and home equity loans, retail sales financing, and other credit-related products.

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