HOUSTON, April 10 /PRNewswire/ -- American General Corporation (NYSE: AGC)
and Home Beneficial Corporation (NYSE: HBENB) today jointly announced that
they expect American General to complete the acquisition of Home Beneficial on
April 16, 1997, subject to approval by Home Beneficial's shareholders on that
date.
    Home Beneficial's shareholders may elect to have each share of their Home
Beneficial common stock converted into 0.9670 shares of American General
common stock or $39.00 in cash.  The exchange ratio for American General
common stock was based on $40.3313, the average of the daily high and low
sales price of American General common stock as reported in The Wall Street
Journal during the 10 consecutive trading days ending on and including April
9, 1997.
    Cash elections are limited to no more than 50% and no less than 25% of the
aggregate consideration.  Elections must be made using the Form of
Election/Letter of Transmittal previously made available to Home Beneficial's
shareholders, and must be received, together with appropriate share
certificates or notice of guaranteed delivery, by First Chicago Trust Company
of New York, the Exchange Agent, no later than 5:00 p.m. EDT on April 11,
1997.  Shares of Home Beneficial common stock with respect to which no
election has been made will be converted into the right to receive, to the
extent cash elections exceed 50% of the outstanding shares of Home Beneficial
common stock, stock consideration or, to the extent stock elections exceed 75%
of the outstanding shares of Home Beneficial common stock or cash elections do
not exceed 50% of the outstanding shares of Home Beneficial common stock, cash
consideration, without regard to the preference of the holder of such shares.
Home Beneficial shareholders requesting additional information or a Form of
Election/Letter of Transmittal should contact Corporate Investor
Communications, Inc., the Information Agent by calling (800) 932-8478.
    On December 22, 1996, the companies signed a definitive agreement under
which American General would acquire Home Beneficial for an aggregate
consideration of $665 million or $39.00 per Home Beneficial share.  Based on
capitalization targets for American General's subsidiaries, Home Beneficial
has excess capital of $300 million which will be used for general corporate
purposes.
    American General is one of the nation's largest diversified financial
services organizations with assets of $66 billion and shareholders' equity of
$5.6 billion.  Headquartered in Houston, it is a leading provider of
retirement services, life insurance, and consumer loans to over nine million
customers.  American General Corporation common stock is listed on the New
York, Pacific, London, and Swiss stock exchanges.
    Home Beneficial Corporation, with assets of $1.4 billion and shareholders'
equity of $549 million, markets individual life insurance products in six Mid
Atlantic states and the District of Columbia.  Founded in 1899, the company is
headquartered in Richmond, Virginia.

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