Press Release

Alcohol Sensors International Announces Investment and New Product

12/26/96

American International Group subsidiary makes investment in Alcohol
Sensors International


ISLANDIA, N.Y.--(BUSINESS WIRE) -- Alcohol Sensors International
Ltd. (ASI) , developers and marketers of safety devices
that help prevent drinking and driving, today announced that a
subsidiary of American International Group Inc. (AIG), has made an
investment in ASI.

ASI manufactures the SENS-O-LOCK (TM) Breath Alcohol Ignition
Interlock Safety Device which requires a driver to provide an
alcohol-safe breath sample prior to starting their vehicle and at
random intervals while driving. AIG through a subsidiary has made an
investment of $2.5 million in convertible preferred stock of ASI in
order to support the company, in its development, manufacturing and
distribution efforts.

"AIG is making a significant investment in Alcohol Sensors
International to strengthen our financial position and assure adequate
marketing support for the launch of a new line of SENS-O-LOCK (TM)
Alcohol Specific Technology products commencing in January 1997,"
stated Robert B. Whitney, ASI President and CEO.  "Drinking and
driving is a major problem here in the United States and in countries
around the world. We are pleased and proud that a major insurer doing
business worldwide has recognized the life-saving potential products."

Alcohol Sensors International Ltd., will begin taking orders for their
new SENS-O-LOCK AST series products in January at the 1997 Winter
Consumer Electronics Show. The new SENS-O-LOCK models feature superior
accuracy, freedom from recalibration and Alcohol Specific Technology:
detecting and reacting only to ethanol. Sensors used in previous
designs, including competitors' products, may be affected by a wide
variety of gases, including cigarette smoke, carbon monoxide (vehicle
exhaust), gasoline vapors, acetone and other noxious fumes, as well as
human ketones misread as high alcohol levels resulting in "false
positives." The new AST series products are unaffected by exposure to
these gases. Three models will be introduced during the first quarter
of 1997, the SENS-O-LOCK 1100 AST, 2100 AST and 3100 AST, designed for
the Mandate (court-ordered), Parental (voluntary) and Commercial
markets, respectively.

"Our ongoing research and development efforts have led to the
development of true breakthrough technology with the introduction of
our proprietary alcohol sensor, " Whitney explained. "Because of this
superior technology, we anticipate entering the evidentiary market
during the second quarter of 1997, with stationary, equipment designed
to replace breath alcohol devices currently used in the police
stations and specially equipped DWI-vans, as well as high quality
hand-held units that will enable an EBT-certified test unit to be
carried in every patrol car." ASI is also planning to develop
hand-held units for private and commercial use, also anticipated in
the 2nd or 3rd quarter of 1997.

"Insurance underwriters around the world recognize the tragedy of
drinking and driving accidents, in terms of loss of life, serious
injury and billions of dollars in property losses, legal fees and
claims." Whitney said.  "Driver education, substance abuse classes
higher insurance premiums, fines and even the threat of jail have not
succeeded in mitigating the drinking and driving problem. In fact, the
latest U.S. statistics show an increase. SENS-O-LOCK applies today's
advanced technology to the problem, and we believe it is the first
practical solution. We welcome AIG's support in helping us market our
technology worldwide," Whitney concluded.

American International Group Inc. is the leading U.S.-based
international insurance organization and among the nation's largest
underwriters of commercial and industrial coverages. Its member
Companies write property, casualty, marine, life, and financial
services insurance in approximately 130 countries and jurisdictions
and are engaged in a range of financial services businesses. American
International Group, Inc.'s Common Stock is listed in the New York
Stock Exchange, as well as the stock exchanges in London, Paris,
Switzerland and Tokyo.

Alcohol Sensors International Ltd. sells and through a network of
installation centers, services repairs and installs a line of patent
pending SENS-O-LOCK(TM) ignition interlock devices that are designed
to detect, evaluate and help prevent an alcohol impaired driver from
operating a vehicle equipped with the company's devices. The company's
SENS-O-LOCK (TM) products are marketed to the legislative (State)
mandated installation market, the corporate fleet market and to
individual vehicle owners. Alcohol Sensors International
Ltd. develops, licenses and sells safety-related products to the
automotive aftermarket industry.