Haier and New York Life Join Forces To Enter Chinese Life Insurance Market

NEW YORK, N.Y., and QINGDAO, P.R.C. December 26, 2001 - New York Life Insurance Company and the Haier Group today announced they will form a joint venture to sell life insurance in China, pending approval of the venture by the China Insurance Regulatory Commission (CIRC).

The joint venture company, to be called Haier New York Life, is to be a 50/50 partnership between the Haier Investment & Development Company Ltd., under the Haier Group of Qingdao, China's leading manufacturer of household appliances, and New York Life International, the overseas arm of New York Life, the largest mutual life insurance company in the United States.

The new company will have an initial capitalization of RMB200 million and will immediately begin the process of establishing a management team and determining the location of its initial operations from among the Chinese cities currently open for Sino-foreign life insurance companies.

This announcement comes just two weeks after New York Life was authorized by CIRC to begin the process of establishing life insurance operations in China. The speed with which New York Life International and Haier have formed their joint venture underscores both the rapid growth of the two companies in recent years as well as their experience managing successful joint ventures.

"The speedy conclusion of this joint venture agreement is testament to the entrepreneurial nature of both organizations and the strong working relationship New York Life and Haier executives have forged with one another. Both sides found the best partner at the best time." said Zhang Ruimin, Chairman and CEO of Haier.

"We are extremely pleased to have formed a joint venture with Haier as our partner," said Gary Benanav, Chairman & CEO of New York Life International. "Haier is among the most-admired companies in China with a loyal customer base throughout the country and a large distribution network. It is, without a doubt, one of the most reputable and recognized companies in Asia-Pacific with a growing presence in the United States and Europe."

"Around the globe, New York Life is known for high-quality products, a commitment to innovation, and especially for the integrity and professionalism of its highly-trained sales force," said Haier's Zhang. "Haier looks forward to combining its talents with New York Life to bring world-class life insurance products and service to the people of China."

"The Haier Group shares our company's commitment to a set of core values that emphasizes, above all else, treating our customers with integrity and professionalism," said Benanav. "This joint venture combines two companies that are remarkably similar in their outlook and values."

New York Life International offers insurance products through its subsidiaries and affiliates in Argentina, Hong Kong, India, Mexico, the Philippines, South Korea, Taiwan, and Thailand. The company has representative offices in the cities of Beijing, Shanghai, Guangzhou, and Chengdu, in the People's Republic of China, and in Hanoi, Vietnam.

New York Life Insurance Company, a Fortune 100 company, is the largest mutual life insurance company in the United States. Founded in 1845 and headquartered in New York City, New York Life and its affiliates offer life insurance, annuities and long-term care insurance. On the investment side, New York Life's affiliates provide institutional asset management and trust services and, through a subsidiary, NYLIFE Distributors Inc., provide an array of securities products and services such as institutional and retail mutual funds, including 401(k) products.

Haier Group was founded in 1984. Over the past 17 years, Haier has made significant achievements and become a multinational manufacturer of home appliances. With an excellent reputation domestically and abroad, Haier now produces a wide range of white, black and brown household electrical appliances with a range of 89 varieties with 13,000 specifications. Haier products are now marketed in 160 countries. In 2000, Haier's sales turnover was RMB40.6 billion with a $280 million export value. In 2001, Haier's global sales reached RMB60 billion. Also in 2001, the value of Haier's brand was RMB 43.6 billion.

Haier's international framework encompasses competitive globalized design, production, distribution and after-sales service networks. Haier now operates 15 design institutes (including eight overseas), nine industrial areas (including two overseas in the United States and Pakistan, seven domestic in Qingdao, Hefei and Dalian), 49 production facilities, 11,976 service centers and 53,000 after-sales outlets throughout the world. With the expansion of Haier's market share throughout the world and enhancement of the reputation of its brand and innovation in its corporate culture and management, the company has received attention from and become highly evaluated in world management circles. Haier's experience in three successful cases has been included in the archives of Harvard, European Management College and IMD, and used as education material for global business management colleges.

Haier's goal is to become one of the Fortune Global 500 and become a world-leading brand.

Fielding Dupuy
New York Life
212-576-7260
917-295-0062 (mobile)

Bill Werfelman
New York Life
212-576-5385

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