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<SEC-DOCUMENT>0000004962-04-000160.txt : 20040727
<SEC-HEADER>0000004962-04-000160.hdr.sgml : 20040727
<ACCEPTANCE-DATETIME>20040726131857
ACCESSION NUMBER:		0000004962-04-000160
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20040630
ITEM INFORMATION:		
ITEM INFORMATION:		Regulation FD Disclosure
FILED AS OF DATE:		20040726

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AMERICAN EXPRESS CO
		CENTRAL INDEX KEY:			0000004962
		STANDARD INDUSTRIAL CLASSIFICATION:	FINANCE SERVICES [6199]
		IRS NUMBER:				134922250
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-07657
		FILM NUMBER:		04930557

	BUSINESS ADDRESS:	
		STREET 1:		200 VESEY STREET
		STREET 2:		50TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10285
		BUSINESS PHONE:		2126402000

	MAIL ADDRESS:	
		STREET 1:		200 VESEY STREET
		STREET 2:		50TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10285
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>earnjulywrap.txt
<DESCRIPTION>8-K AMERICAN EXPRESS COMPANY
<TEXT>
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549
                          --------------------------

                                   FORM 8-K

                                CURRENT REPORT

                    Pursuant to Section 13 or 15(d) of the
                        Securities Exchange Act of 1934

                          --------------------------

      Date of Report (Date of earliest event reported): July 26, 2004
                          --------------------------



                           AMERICAN EXPRESS COMPANY
            (Exact name of registrant as specified in its charter)

                          --------------------------



          New York                      1-7657                 13-4922250
- -----------------------------  ------------------------    -------------------
(State or other jurisdiction   (Commission File Number)     (IRS Employer
     of incorporation                                      Identification No.)
     or organization)


       200 Vesey Street, World Financial Center
                  New York, New York                       10285
       ----------------------------------------          ----------
       (Address of principal executive offices)          (Zip Code)


      Registrant's telephone number, including area code (212) 640-2000

              ---------------------------------------------------
         (Former name or former address, if changed since last report)



================================================================================
<PAGE>

ITEM 9.   REGULATION FD DISCLOSURE; AND ITEM 12. RESULTS OF OPERATIONS AND
             FINANCIAL CONDITION.

     The following information is furnished under Item 9 - Regulation FD
Disclosure and Item 12 - Results of Operations and Financial Condition:

     On July 26, 2004, American Express Company issued a press release
announcing its financial results for the second quarter of 2004. A copy of
such press release is attached to this report as Exhibit 99.1 and is hereby
incorporated herein by reference. In addition, in conjunction with the
announcement of its financial results, American Express Company distributed
additional financial information relating to its 2004 second quarter financial
results and a 2004 Second Quarter Earnings Supplement. Such additional
financial information and the 2004 Second Quarter Earnings Supplement are
attached to this report as Exhibits 99.2 and 99.3, respectively, and each is
hereby incorporated by reference.


EXHIBIT

99.1   Press Release, dated July 26, 2004, of American Express Company
       announcing its financial results for the second quarter of 2004.

99.2   Additional financial information relating to the financial results of
       American Express Company for the second quarter of 2004.

99.3   2004 Second Quarter Earnings Supplement of American Express Company.

<PAGE>



                                   SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                        AMERICAN EXPRESS COMPANY
                                        (REGISTRANT)






                                               /s/ Stephen P. Norman
                                        Name:  Stephen P. Norman
                                        Title: Secretary

DATE:   July 26, 2004


<PAGE>


                                  EXHIBIT INDEX


Exhibit No.    Description
- -----------    -----------


99.1           Press Release, dated July 26, 2004, of American Express Company
               announcing its financial results for the second quarter of
               2004.

99.2           Additional financial information relating to the financial
               results of American Express Company for the second quarter of
               2004.

99.3           2004 Second Quarter Earnings Supplement of American Express
               Company.

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1 PRESS RELEAS
<SEQUENCE>2
<FILENAME>ex_991.txt
<DESCRIPTION>PRESS RELEASE
<TEXT>
                                                                    EXHIBIT 99.1

News Release        News Release            News Release           News Release

[LOGO OF AMERICAN EXPRESS]

Contacts:                 Tony Mitchell                   Michael J. O'Neill
                          212-640-9668                    212-640-5951
                          anthony.a.mitchell@aexp.com     mike.o'neill@aexp.com

FOR IMMEDIATE RELEASE

- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
    AMERICAN EXPRESS REPORTS RECORD EARNINGS AND REVENUES IN SECOND QUARTER

                  Results Reflect Record Cardmember Billings
                         and Excellent Credit Quality



                (Dollars in millions, except per share amounts)

                                                   Quarters Ended          Percentage       Six Months Ended     Percentage
                                                        June 30             Inc/(Dec)          June 30           Inc/(Dec)
                                             ------------------------      ----------     ---------------------  ----------
                                                2004          2003                         2004            2003
                                                ----          ----                         ----            ----
<S>                                        <C>              <C>             <C>        <C>            <C>           <C>
   Revenues                                  $  7,258         $ 6,356         14%        $ 14,168       $ 12,379      14%

   Income Before Accounting Change           $    876         $   762         15%          $1,741        $ 1,454      20%

   Net Income                                $    876         $   762         15%         $ 1,670*       $ 1,454      15%


   Earnings Per Common Share - Basic:
      Income Before Accounting Change        $   0.69         $  0.59         17%          $ 1.37         $ 1.13      21%
      Net Income                             $   0.69         $  0.59         17%          $ 1.31*        $ 1.13      16%

   Earnings Per Common Share - Diluted:
      Income Before Accounting Change        $   0.68         $  0.59         15%          $ 1.34         $ 1.12      20%
      Net Income                             $   0.68         $  0.59         15%          $ 1.29*        $ 1.12      15%

   Average Common Shares Outstanding
      Basic                                     1,263           1,283         (2%)          1,270          1,290      (2%)
      Diluted                                   1,288           1,295         (1%)          1,296          1,300       -

   Return on Average Total Shareholders'
   Equity**                                      21.2%          20.1%          -             21.2%          20.1%      -

</TABLE>


* Reflects a $109 million non-cash pretax charge ($71 million after-tax), or
$0.06 on a basic per share basis and $0.05 on a diluted per share basis,
relating to the January 1, 2004, adoption of Statement of Position 03-1,
"Accounting and Reporting by Insurance Enterprises for Certain Nontraditional
Long-Duration Contracts and Separate Accounts" (SOP 03-1).

** Computed on a trailing 12-month basis using total Shareholders' Equity as
included in the Consolidated Financial Statements prepared in accordance with
U.S. generally accepted accounting principles (GAAP).


                                      -1-

<PAGE>


         New York - July 26, 2004 - American Express Company today reported
record net income of $876 million for the second quarter, up 15 percent from
$762 million a year ago. Diluted earnings per share (EPS) rose to $0.68, also
up 15 percent from $0.59 a year ago.
         The company's return on equity was 21.2 percent.
         Revenues totaled a record $7.3 billion, up 14 percent from $6.4
billion a year ago. This growth reflects record cardmember spending on
American Express Cards, stronger financial advisor sales, higher client asset
levels and increased travel sales.
         Consolidated expenses totaled $6.0 billion, up 14 percent from $5.3
billion a year ago. This increase reflects higher expenses for marketing,
promotion, rewards and cardmember services, human resources and other
operating expenses.
         "Our record results this quarter reflected outstanding growth in
cardmember spending among consumers, small businesses, corporations and on
cards issued on our network by bank partners," said Kenneth I. Chenault,
Chairman and CEO. "Continued investments in the card business helped us to
capitalize on competitive opportunities and generated broad increases in the
retail, everyday spending, travel and entertainment sectors of the market.
         "Client assets and financial advisor sales continued to grow and
credit quality remained at historically strong levels throughout the company.
         "We're entering the second half of the year in excellent competitive
position with strong momentum in our major businesses."

     SECOND QUARTER 2004 RESULTS
         The second quarter revenues reflected 14 percent growth at Travel
Related Services (TRS), 18 percent growth at American Express Financial
Advisors (AEFA) and 2 percent growth at American Express Bank (AEB). More
specifically,

                                     -2-
<PAGE>

        o Discount revenue increased 18 percent, reflecting a 19 percent
          rise in cardmember spending.
        o Management and distribution fees rose 32 percent due to higher
          asset and sales levels at AEFA.
        o Travel commissions and fees increased 26 percent as a result
          of higher travel sales.

        The acquisitions of Threadneedle Asset Management and Rosenbluth
International in the second half of last year contributed approximately 2
percentage points to the company's overall revenue growth.

         Second quarter expenses reflected increases of 13 percent at TRS and
17 percent at AEFA, while expenses at AEB were essentially flat. More
specifically,

       o Marketing, promotion, rewards and cardmember services expenses
         increased 33 percent, driven by a similar 33 percent increase at TRS.
       o Human resources expense increased 17 percent as a result of
         acquisitions in late 2003, increased management incentives costs,
         including an additional year of incremental stock-based compensation
         expenses, merit increases and employee benefits.
       o Other operating expenses rose 13 percent, including an 8 percent
         increase at TRS and a 32 percent increase at AEFA.

        These items were partially offset by a 9 percent decline in interest
expense.

         Travel Related Services (TRS) reported record quarterly net income of
$732 million, up 16 percent from $634 million a year ago.

         THE FOLLOWING DISCUSSION OF SECOND QUARTER RESULTS PRESENTS TRS
SEGMENT RESULTS ON A "MANAGED BASIS," AS IF THERE HAD BEEN NO CARDMEMBER
LENDING SECURITIZATION TRANSACTIONS. THIS IS THE BASIS USED BY MANAGEMENT TO
EVALUATE OPERATIONS AND IS CONSISTENT WITH INDUSTRY PRACTICE. FOR FURTHER
INFORMATION ABOUT MANAGED BASIS AND RECONCILIATION OF GAAP AND MANAGED TRS
INFORMATION, SEE THE "MANAGED BASIS" SECTION BELOW. THE AEFA, AEB AND
CORPORATE AND OTHER SECTIONS BELOW ARE PRESENTED ON A GAAP BASIS.

                                     -3-
<PAGE>

         Total net revenues rose 13 percent from the year-ago period,
reflecting continued strong growth in spending on American Express Cards and
increased travel sales.
         Discount revenue grew 18 percent driven by a 19 percent increase in
billed business. These increases reflected higher average cardmember spending,
the continued benefit of rewards programs and a net addition of over 4 million
cards-in-force. The higher business volumes also reflected continuing growth
in the retail, everyday spending, travel and entertainment sectors.
         Net finance charge revenue increased 4 percent as a result of
increased worldwide lending balances, partially offset by a decline in
portfolio yield.
         Travel commissions and fees grew 26 percent reflecting 34 percent
growth in travel sales, including the benefits of the Rosenbluth acquisition.
Net card fees increased 4 percent primarily as a result of a higher number of
cards-in-force.
         Total expenses increased 12 percent reflecting higher marketing,
promotion, rewards and cardmember services expenses, greater human resources
expense and higher other operating costs. These increases were partially
offset by lower provisions for losses, a decline in charge card interest
expense and the benefits of cost-control initiatives.
         Marketing, promotion, rewards and cardmember services expenses
increased 40 percent over the year-ago period. This growth reflected higher
rewards costs driven by the strong increase in cardmember spending, a higher
redemption rate and increased participation in loyalty programs. It also
reflected the continued focus on business-building activities.
         Human resources expense increased 12 percent due to merit increases,
higher management incentives, including an additional year of incremental
stock-based compensation expenses, and employee benefits, in addition to the
Rosenbluth acquisition in late 2003. Other operating expenses increased 10
percent.

                                     -4-
<PAGE>
         Credit quality remained very strong in both the charge and lending
portfolios. The total provision for losses declined 9 percent, reflecting a
decline of 10 percent in the lending provision and a 7 percent decrease in the
charge card provision. Reserve coverage ratios remained strong.
         Charge card interest expense decreased 14 percent largely due to
lower funding costs, which were partially offset by higher average receivable
balances.

         American Express Financial Advisors (AEFA) reported second quarter
net income of $174 million, up 11 percent from $157 million a year ago. Total
revenues increased 18 percent.
         Management and distribution fees increased 32 percent, reflecting a
significant rise in assets under management and stronger product sales. This
improvement reflected the third quarter 2003 Threadneedle acquisition, higher
average equity values and net asset inflows. Net investment income increased 6
percent from year-ago levels, including net investment gains in the current
quarter versus net losses a year ago. Other revenues rose from last year,
reflecting strong performance in the property-casualty business.
         Provisions for losses and benefits increased slightly, reflecting
higher levels of annuities, insurance and certificate products, partially
offset by lower interest crediting rates.
         Human resources and other operating expenses rose a combined 27
percent from year-ago levels. The increase reflected the Threadneedle
acquisition, higher sales compensation-related expenses and costs related to
various industry regulatory and legal matters.
         The effective tax rate at AEFA rose primarily as a result of required
amendments to prior-year tax returns. On a pre-tax basis, AEFA's quarterly
income rose 27 percent from year-ago levels.

         AMERICAN EXPRESS BANK (AEB) reported net income for the second
quarter of $28 million, up 4 percent from $27 million a year ago.
         AEB's results included substantially lower provision for losses,
reflecting lower loan volumes in the unsecured consumer-lending portfolio
together with continued improvement in bankruptcy-related write-offs. The
results also reflected higher commissions and fees in the financial
institutions and private banking businesses, partially offset by lower net
interest income from lower consumer loans, as well as higher operating
expenses.

         Corporate and Other reported second quarter net expenses of $58
million in 2004 compared with $56 million in 2003. The results reflected an
$18 million tax benefit from the final settlement of a Federal tax audit,
offset by higher interest expense and increased corporate investment spending
on compliance and technology projects.



                                      ***



                                      -5-
<PAGE>
     MANAGED BASIS - TRS
         Managed basis means the presentation assumes there have been no
securitization transactions, i.e. all securitized cardmember loans and related
income effects are reflected as if they were in the company's balance sheet
and income statements, respectively. The company presents TRS information on a
managed basis because that is the way the company's management views and
manages the business. Management believes that a full picture of trends in the
company's cardmember lending business can only be derived by evaluating the
performance of both securitized and non-securitized cardmember loans.
         Asset securitization is just one of several ways for the company to
fund cardmember loans. Use of a managed basis presentation, including
non-securitized and securitized cardmember loans, presents a more accurate
picture of the key dynamics of the cardmember lending business, avoiding
distortions due to the mix of funding sources at any particular point in time.
         For example, irrespective of the funding mix, it is important for
management and investors to see metrics, such as changes in delinquencies and
write-off rates, for the entire cardmember lending portfolio because they are
more representative of the economics of the aggregate cardmember relationships
and ongoing business performance and trends over time. It is also important
for investors to see the overall growth of cardmember loans and related
revenue and changes in market share, which are all significant metrics in
evaluating the company's performance and which can only be properly assessed
when all non-securitized and securitized cardmember loans are viewed together
on a managed basis.
         The Consolidated Section of this press release and attachments
provide the GAAP presentation for items described on a managed basis.


                                      ***

                                     -6-
<PAGE>


The following table reconciles the GAAP-basis TRS income statements to the
managed-basis information.

<TABLE>
<CAPTION>

- --------------------------------------------------------------------------
Travel Related Services
Selected Financial Information
                                                                            ----------------------------------------------------
                                                                            ----------------------------------------------------

                                                                                   Effect of Securitizations (unaudited)
                                                                             Securitization
(preliminary, millions)                       GAAP Basis (unaudited)             Effect                 Managed Basis
                                         ---------------------------------  ------------------ ---------------------------------
                                         ---------------------------------
                                                               Percentage                                            Percentage
Quarters Ended June 30,                      2004        2003   Inc/(Dec)     2004     2003        2004       2003     Inc/(Dec)
                                         ----------- ---------------------  ------------------ ---------------------------------
                                         ----------- ---------------------  ------------------ ---------------------------------
<S>                                      <C>         <C>          <C>      <C>       <C>       <C>        <C>          <C>
Net revenues:

  Discount revenue                       $  2,529     $ 2,152      18%
  Lending:
    Finance charge revenue                    697         598      16       $  489    $ 566     $ 1,186    $ 1,164        2%
    Interest expense                          136         115      18           61       95         197        210       (6)
                                         ----------- ----------             ------------------ ----------------------
                                         ----------- ----------             ------------------ ----------------------
      Net finance charge revenue              561         483      16          428      471         989        954        4
  Net card fees                               472         455       4
  Travel commissions and fees                 468         373      26
  Other commissions and fees                  551         457      21           50       45         601        502       20
  Travelers Cheque investment income           95          92       2
  Securitization income, net                  282         300      (6)        (282)    (300)          -          -       -
  Other revenues                              420         422      (1)
                                         ----------- ----------             ------------------ ----------------------
                                         ----------- ----------             ------------------ ----------------------
        Total net revenues                  5,378       4,734      14          196      216       5,574      4,950       13
Expenses:
  Marketing, promotion, rewards and
    Cardmember services                     1,225         918      33           (6)     (48)      1,219        870       40
  Provision for losses and claims:
    Charge card                               189         205      (7)
    Lending                                   314         278      13          205      297         519        575      (10)
    Other                                      33          37     (13)
                                         ----------- ----------             ------------------ ----------------------
                                         ----------- ----------             ------------------ ----------------------
      Total                                   536         520       3          205      297         741        817       (9)
  Charge card interest expense                175         204     (14)
  Human resources                           1,081         965      12
  Other operating expenses                  1,282       1,190       8           (3)     (33)      1,279      1,157       10
                                         ----------- ----------             ------------------ ----------------------
        Total expenses                      4,299       3,797      13       $  196   $  216     $ 4,495    $ 4,013       12
                                         ----------- ----------             ------------------ ----------------------
                                         ----------- ----------             ------------------ ----------------------
Pretax income                               1,079         937      15
                                                                            ----------------------------------------------------
                                                                            ----------------------------------------------------
Income tax provision                          347         303      14
                                         ----------- ----------
                                         ----------- ----------
Net income                               $    732     $   634      16
                                         =========== ==========
                                         =========== ==========

</TABLE>


Note:  Certain prior period amounts have been reclassified to conform
       to current-year presentation.



              American Express Company (www.americanexpress.com), founded in
1850, is a global travel, financial and network services provider.

                                      ***


                                     -7-
<PAGE>
              Note: The 2004 Second Quarter Earnings Supplement, as well as
CFO Gary Crittenden's presentation from the investor conference call referred
to below, will be available today on the American Express web site at
http://ir.americanexpress.com. An investor conference call to discuss second
quarter earnings results, operating performance and other topics that may be
raised during the discussion will be held at 5:00 p.m. (ET) today. Live audio
of the conference call will be accessible to the general public on the
American Express web site at http://ir.americanexpress.com. A replay of the
conference call also will be available today at the same web site address.

                                      ***

              THIS RELEASE INCLUDES FORWARD-LOOKING STATEMENTS, WHICH ARE
SUBJECT TO RISKS AND UNCERTAINTIES. THE WORDS "BELIEVE," "EXPECT,"
"ANTICIPATE," "OPTIMISTIC," "INTEND," "PLAN," "AIM," "WILL," "MAY," "SHOULD,"
"COULD," "WOULD," "LIKELY," AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY
FORWARD-LOOKING STATEMENTS. READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE
ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH
THEY ARE MADE. THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE OR REVISE ANY
FORWARD-LOOKING STATEMENTS. FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER
MATERIALLY FROM THESE FORWARD-LOOKING STATEMENTS INCLUDE, BUT ARE NOT LIMITED
TO: THE COMPANY'S ABILITY TO SUCCESSFULLY IMPLEMENT A BUSINESS MODEL THAT
ALLOWS FOR SIGNIFICANT EARNINGS GROWTH BASED ON REVENUE GROWTH THAT IS LOWER
THAN HISTORICAL LEVELS, INCLUDING THE ABILITY TO IMPROVE ITS OPERATING EXPENSE
TO REVENUE RATIO BOTH IN THE SHORT-TERM AND OVER TIME, WHICH WILL DEPEND IN
PART ON THE EFFECTIVENESS OF REENGINEERING AND OTHER COST-CONTROL INITIATIVES,
AS WELL AS FACTORS IMPACTING THE COMPANY'S REVENUES; THE COMPANY'S ABILITY TO
COST EFFECTIVELY MANAGE AND EXPAND CARDMEMBER BENEFITS, INCLUDING CONTAINING
THE GROWTH OF ITS MARKETING, PROMOTION, REWARDS AND CARDMEMBER SERVICES
EXPENSES; THE COMPANY'S ABILITY TO ACCURATELY ESTIMATE THE PROVISION FOR THE
COST OF THE MEMBERSHIP REWARDS PROGRAM; THE COMPANY'S ABILITY TO GROW ITS
BUSINESS AND MEET OR EXCEED ITS RETURN ON SHAREHOLDERS' EQUITY TARGET BY
REINVESTING APPROXIMATELY 35% OF ANNUALLY-GENERATED CAPITAL, AND RETURNING
APPROXIMATELY 65% OF SUCH CAPITAL TO SHAREHOLDERS, OVER TIME, WHICH WILL
DEPEND ON THE COMPANY'S ABILITY TO MANAGE ITS CAPITAL NEEDS AND THE EFFECT OF
BUSINESS MIX, ACQUISITIONS AND RATING AGENCY REQUIREMENTS; THE ABILITY OF THE
COMPANY TO GENERATE SUFFICIENT REVENUES FOR EXPANDED INVESTMENT SPENDING AND
TO ACTUALLY SPEND SUCH FUNDS TO THE EXTENT AVAILABLE, AND THE ABILITY TO
CAPITALIZE ON SUCH INVESTMENTS TO IMPROVE BUSINESS METRICS; CREDIT RISK
RELATED TO CONSUMER DEBT, BUSINESS LOANS, MERCHANT BANKRUPTCIES AND OTHER
CREDIT EXPOSURES BOTH IN THE UNITED STATES AND INTERNATIONALLY; VOLATILITY IN
THE VALUATION ASSUMPTIONS FOR THE INTEREST-ONLY (I/O) STRIP RELATING TO TRS'
LENDING SECURITIZATIONS; FLUCTUATION IN THE EQUITY AND FIXED INCOME MARKETS,
WHICH CAN AFFECT THE AMOUNT AND TYPES OF INVESTMENT PRODUCTS SOLD BY AEFA, THE
MARKET VALUE OF ITS MANAGED ASSETS, AND MANAGEMENT, DISTRIBUTION AND OTHER
FEES RECEIVED BASED ON THE VALUE OF THOSE ASSETS; AEFA'S ABILITY TO RECOVER
DEFERRED ACQUISITION COSTS (DAC), AS WELL AS THE TIMING OF SUCH DAC
AMORTIZATION, IN CONNECTION WITH THE SALE OF ANNUITY, INSURANCE AND CERTAIN
MUTUAL FUND PRODUCTS; CHANGES IN ASSUMPTIONS RELATING TO DAC, WHICH COULD
IMPACT THE AMOUNT OF DAC AMORTIZATION; THE ABILITY TO IMPROVE INVESTMENT
PERFORMANCE IN AEFA'S BUSINESSES, INCLUDING ATTRACTING AND RETAINING
HIGH-QUALITY PERSONNEL; THE SUCCESS, TIMELINESS AND FINANCIAL IMPACT,
INCLUDING COSTS, COST SAVINGS AND OTHER BENEFITS, INCLUDING INCREASED
REVENUES, OF REENGINEERING INITIATIVES BEING IMPLEMENTED OR CONSIDERED BY THE
COMPANY, INCLUDING COST MANAGEMENT, STRUCTURAL AND STRATEGIC MEASURES SUCH AS
VENDOR, PROCESS, FACILITIES AND OPERATIONS CONSOLIDATION, OUTSOURCING
(INCLUDING, AMONG OTHERS, TECHNOLOGIES OPERATIONS), RELOCATING CERTAIN
FUNCTIONS TO LOWER-COST OVERSEAS LOCATIONS, MOVING INTERNAL AND EXTERNAL
FUNCTIONS TO THE INTERNET TO SAVE COSTS, AND PLANNED STAFF REDUCTIONS RELATING
TO CERTAIN OF SUCH REENGINEERING ACTIONS; THE ABILITY TO CONTROL AND MANAGE
OPERATING, INFRASTRUCTURE, ADVERTISING AND PROMOTION AND OTHER EXPENSES AS
BUSINESS EXPANDS OR CHANGES, INCLUDING BALANCING THE NEED FOR LONGER-TERM
INVESTMENT SPENDING; THE POTENTIAL NEGATIVE EFFECT ON THE COMPANY'S BUSINESSES
AND INFRASTRUCTURE, INCLUDING INFORMATION TECHNOLOGY, OF TERRORIST ATTACKS,
DISASTERS OR OTHER CATASTROPHIC EVENTS IN THE FUTURE; THE IMPACT ON THE
COMPANY'S BUSINESSES RESULTING FROM CONTINUING GEOPOLITICAL UNCERTAINTY; THE
OVERALL LEVEL OF CONSUMER CONFIDENCE; CONSUMER AND BUSINESS SPENDING ON THE
COMPANY'S TRAVEL RELATED SERVICES PRODUCTS, PARTICULARLY CREDIT AND CHARGE
CARDS AND GROWTH IN CARD LENDING BALANCES, WHICH DEPEND IN PART ON THE ABILITY
TO ISSUE NEW AND ENHANCED CARD PRODUCTS AND INCREASE REVENUES FROM SUCH
PRODUCTS, ATTRACT NEW CARDHOLDERS, CAPTURE A GREATER SHARE OF EXISTING
CARDHOLDERS' SPENDING, SUSTAIN PREMIUM DISCOUNT RATES ON ITS CARD PRODUCTS IN
LIGHT OF MARKET PRESSURES, INCREASE MERCHANT COVERAGE, RETAIN CARDMEMBERS
AFTER LOW INTRODUCTORY LENDING RATES HAVE EXPIRED, AND EXPAND THE GLOBAL
NETWORK SERVICES BUSINESS; THE TRIGGERING OF OBLIGATIONS TO MAKE PAYMENTS TO
CERTAIN CO-BRAND PARTNERS, MERCHANTS, VENDORS AND CUSTOMERS UNDER CONTRACTUAL
ARRANGEMENTS WITH SUCH PARTIES UNDER CERTAIN CIRCUMSTANCES; AEFA'S ABILITY TO
DEVELOP AND ROLL OUT NEW AND ATTRACTIVE PRODUCTS TO CLIENTS IN A TIMELY MANNER
AND EFFECTIVELY MANAGE THE ECONOMICS IN SELLING A GROWING VOLUME OF
NON-PROPRIETARY MUTUAL FUNDS AND OTHER RETAIL FINANCIAL PRODUCTS TO CLIENTS;
SUCCESSFULLY CROSS-SELLING FINANCIAL, TRAVEL, CARD AND OTHER PRODUCTS AND
SERVICES TO THE COMPANY'S CUSTOMER BASE, BOTH IN THE UNITED STATES AND
INTERNATIONALLY; A DOWNTURN IN THE COMPANY'S BUSINESSES AND/OR NEGATIVE
CHANGES IN THE COMPANY'S AND ITS SUBSIDIARIES' CREDIT RATINGS, WHICH COULD
RESULT IN CONTINGENT PAYMENTS UNDER CONTRACTS, DECREASED LIQUIDITY AND HIGHER
BORROWING COSTS; FLUCTUATIONS IN INTEREST RATES, WHICH IMPACT THE COMPANY'S
BORROWING COSTS, RETURN ON LENDING PRODUCTS AND SPREADS IN THE INVESTMENT AND
INSURANCE BUSINESSES; CREDIT TRENDS AND THE RATE OF BANKRUPTCIES, WHICH CAN
AFFECT SPENDING ON CARD PRODUCTS, DEBT PAYMENTS BY INDIVIDUAL AND CORPORATE
CUSTOMERS AND BUSINESSES THAT ACCEPT THE COMPANY'S CARD PRODUCTS AND RETURNS
ON THE COMPANY'S INVESTMENT PORTFOLIOS; BANKRUPTCIES, RESTRUCTURINGS OR
SIMILAR EVENTS AFFECTING THE AIRLINE OR ANY OTHER INDUSTRY REPRESENTING A
SIGNIFICANT PORTION OF TRS'S BILLED BUSINESS, INCLUDING ANY POTENTIAL NEGATIVE
EFFECT ON PARTICULAR CARD PRODUCTS AND SERVICES AND BILLED BUSINESS GENERALLY
THAT COULD RESULT FROM THE ACTUAL OR PERCEIVED WEAKNESS OF KEY BUSINESS
PARTNERS IN SUCH INDUSTRIES; FLUCTUATIONS IN FOREIGN CURRENCY EXCHANGE RATES;
POLITICAL OR ECONOMIC INSTABILITY IN CERTAIN REGIONS OR COUNTRIES, WHICH COULD
AFFECT LENDING AND OTHER COMMERCIAL ACTIVITIES, AMONG OTHER BUSINESSES, OR
RESTRICTIONS ON CONVERTIBILITY OF CERTAIN CURRENCIES; CHANGES IN LAWS OR
GOVERNMENT REGULATIONS; THE COSTS AND INTEGRATION OF ACQUISITIONS; AND
OUTCOMES AND COSTS ASSOCIATED WITH LITIGATION AND COMPLIANCE AND REGULATORY
MATTERS. A FURTHER DESCRIPTION OF THESE AND OTHER RISKS AND UNCERTAINTIES CAN
BE FOUND IN THE COMPANY'S ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED
DECEMBER 31, 2003, AND ITS OTHER REPORTS FILED WITH THE SEC.


                                     -8-
<PAGE>

All information in the following tables is presented on a basis prepared in
accordance with U.S. generally accepted accounting principles (GAAP), unless
otherwise indicated.

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                  CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                  (Unaudited)

<Table>
<Caption>

(Millions)
                                                         Quarters Ended                          Six Months Ended
                                                            June 30,                                 June 30,
                                                    -----------------------   Percentage    --------------------------   Percentage
                                                       2004         2003       Inc/(Dec)       2004            2003       Inc/(Dec)
                                                    ----------   ----------   ----------    ----------      ----------   ----------
<S>                                                 <C>          <C>               <C>      <C>             <C>              <C>
Revenues
  Discount revenue                                  $   2,529    $   2,152         17.5 %   $   4,897       $   4,128         18.6 %
  Management and distribution fees                        750          569         31.8         1,529           1,089         40.4
  Net investment income                                   785          780          0.6         1,526           1,547         (1.4)
  Cardmember lending net finance charge revenue           561          483         15.9         1,102           1,035          6.5
  Net card fees                                           472          455          3.9           944             906          4.3
  Travel commissions and fees                             468          373         25.7           885             713         24.2
  Other commissions and fees                              565          466         21.1         1,094             943         15.9
  Insurance and annuity revenues                          378          341         11.2           742             655         13.3
  Securitization income, net                              282          300         (5.8)          512             511          0.1
  Other                                                   468          437          6.8           937             852         10.0
                                                    ----------   ----------                 ----------      ----------
    Total revenues                                      7,258        6,356         14.2        14,168          12,379         14.5
Expenses
  Human resources                                       1,839        1,576         16.6         3,618           3,066         18.0
  Marketing, promotion, rewards
    and cardmember services                             1,250          944         32.5         2,297           1,719         33.6
  Provision for losses and benefits                     1,080        1,075          0.5         2,102           2,185         (3.8)
  Interest                                                210          231         (9.2)          413             461        (10.5)
  Other operating expenses                              1,613        1,433         12.6         3,224           2,855         13.0
                                                    ----------   ----------                 ----------      ----------
    Total expenses                                      5,992        5,259         14.0        11,654          10,286         13.3
                                                    ----------   ----------                 ----------      ----------
Pretax income before accounting change                  1,266        1,097         15.4         2,514           2,093         20.1
Income tax provision                                      390          335         16.1           773             639         21.0
                                                    ----------   ----------                 ----------      ----------
Income before accounting change                           876          762         15.1         1,741           1,454         19.7
Cumulative effect of accounting change,
  net of tax                                                -            -            -           (71)(A)           -            -
                                                    ----------   ----------                 ----------      ----------
Net income                                          $     876    $     762         15.1     $   1,670       $   1,454         14.9
                                                    ==========   ==========                 ==========      ==========
</Table>

Note: Certain prior period amounts have been reclassified to conform to
current year presentation.

(A)  Reflects a $109 million non-cash pretax charge ($71 million after-tax)
     related to the January 1, 2004 adoption of SOP 03-1.

                                      -9-
<Page>

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                  (Unaudited)

<Table>
<Caption>

(Billions)

                                                       June 30,     December 31,
                                                         2004           2003
                                                     ------------   ------------
<S>                                                  <C>            <C>
Assets
  Cash and cash equivalents                          $         6    $         6
  Accounts receivable                                         32             31
  Investments                                                 58             57
  Loans                                                       34             32
  Separate account assets                                     33             31
  Other assets                                                16             18
                                                     ------------   ------------
    Total assets                                     $       179    $       175
                                                     ============   ============

Liabilities and Shareholders' Equity
  Separate account liabilities                       $        33    $        31
  Short-term debt                                             17             19
  Long-term debt                                              23             21
  Other liabilities                                           91             89
                                                     ------------   ------------
    Total liabilities                                        164            160
                                                     ------------   ------------

  Shareholders' Equity                                        15             15
                                                     ------------   ------------
    Total liabilities and shareholders' equity       $       179    $       175
                                                     ============   ============
</Table>

                                     -10-
<Page>

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                               FINANCIAL SUMMARY
                                  (Unaudited)

<Table>
<Caption>

(Millions)
                                                      Quarters Ended                           Six Months Ended
                                                         June 30,                                  June 30,
                                                  -----------------------   Percentage    --------------------------   Percentage
                                                     2004         2003       Inc/(Dec)       2004            2003       Inc/(Dec)
                                                  ----------   ----------   ----------    ----------      ----------   ----------
<S>                                               <C>          <C>              <C>       <C>             <C>              <C>
REVENUES (A)
  Travel Related Services                         $   5,378    $   4,734         13.6 %   $  10,428       $   9,220         13.1 %
  American Express Financial Advisors                 1,763        1,496         17.9         3,491           2,907         20.1
  American Express Bank                                 203          200          1.8           413             397          4.2
                                                  ----------   ----------                 ----------      ----------
                                                      7,344        6,430         14.2        14,332          12,524         14.4
  Corporate and other,
    including adjustments and eliminations              (86)         (74)       (16.7)         (164)           (145)       (13.0)
                                                  ----------   ----------                 ----------      ----------

CONSOLIDATED REVENUES                             $   7,258    $   6,356         14.2     $  14,168       $  12,379         14.5
                                                  ==========   ==========                 ==========      ==========

PRETAX INCOME (LOSS) BEFORE ACCOUNTING CHANGE
  Travel Related Services                         $   1,079    $     937         15.2     $   2,052       $   1,795         14.3
  American Express Financial Advisors                   264          209         26.5           581             387         50.2
  American Express Bank                                  42           39          9.4            90              68         32.3
                                                  ----------   ----------                 ----------      ----------
                                                      1,385        1,185         17.0         2,723           2,250         18.7
  Corporate and other                                  (119)         (88)       (37.2)         (209)           (157)       (33.2)
                                                  ----------   ----------                 ----------      ----------

PRETAX INCOME BEFORE ACCOUNTING CHANGE            $   1,266    $   1,097         15.4     $   2,514       $   2,093         20.1
                                                  ==========   ==========                 ==========      ==========
NET INCOME (LOSS)
  Travel Related Services                         $     732    $     634         15.6     $   1,397       $   1,218         14.7
  American Express Financial Advisors                   174          157         11.1           331 (B)         290         14.3
  American Express Bank                                  28           27          3.6            58              46         25.2
                                                  ----------   ----------                 ----------      ----------
                                                        934          818         14.3         1,786           1,554         14.9
  Corporate and other                                   (58)         (56)        (4.3)         (116)           (100)       (16.1)
                                                  ----------   ----------                 ----------      ----------

NET INCOME                                        $     876    $     762         15.1     $   1,670 (B)   $   1,454         14.9
                                                  ==========   ==========                 ==========      ==========
</Table>

(A)  Managed net revenues are reported net of American Express Financial
     Advisors' provision for losses and benefits and exclude the effect of
     TRS' securitization activities. The following table reconciles
     consolidated GAAP revenues to Managed Basis net revenues:

<Table>
        <S>                                       <C>          <C>               <C>      <C>             <C>               <C>
        GAAP revenues                             $   7,258    $   6,356         14.2 %   $  14,168       $  12,379         14.5 %
          Effect of TRS securitizations                 196          216                        475             480
          Effect of AEFA provisions                    (532)        (526)                    (1,033)         (1,032)
                                                  ----------   ----------                 ----------      ----------
        Managed net revenues                      $   6,922    $   6,046         14.5     $  13,610       $  11,827         15.1
                                                  ==========   ==========                 ==========      ==========
</Table>

(B)  Reflects a $109 million non-cash pretax charge ($71 million after-tax)
     related to the January 1, 2004 adoption of SOP 03-1.

                                     -11-
<Page>

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                         FINANCIAL SUMMARY (CONTINUED)
                                  (UNAUDITED)

<Table>
<Caption>
                                                       Quarters Ended                           Six Months Ended
                                                          June 30,                                  June 30,
                                                  -----------------------   Percentage     --------------------------   Percentage
                                                     2004         2003       Inc/(Dec)        2004            2003       Inc/(Dec)
                                                  ----------   ----------   ----------     ----------      ----------   ----------
<S>                                               <C>          <C>                 <C>     <C>             <C>                 <C>
EARNINGS PER SHARE

BASIC
  Income before accounting change                 $    0.69    $    0.59           17  %   $    1.37       $    1.13           21  %

  Net income                                      $    0.69    $    0.59           17  %   $    1.31 (A)   $    1.13           16  %
                                                  ==========   ==========                  ==========      ==========

Average common shares outstanding (millions)          1,263        1,283           (2) %       1,270           1,290           (2) %
                                                  ==========   ==========                  ==========      ==========

DILUTED
  Income before accounting change                 $    0.68    $    0.59           15  %   $    1.34       $    1.12           20  %

  Net income                                      $    0.68    $    0.59           15  %   $    1.29 (A)   $    1.12           15  %
                                                  ==========   ==========                  ==========      ==========

Average common shares outstanding (millions)          1,288        1,295           (1)         1,296           1,300            -
                                                  ==========   ==========                  ==========      ==========

Cash dividends declared per common share          $    0.10    $    0.10            -      $    0.20       $    0.18           11  %
                                                  ==========   ==========                  ==========      ==========
</Table>

                       SELECTED STATISTICAL INFORMATION
                                  (Unaudited)

<Table>
<Caption>
                                                       Quarters Ended                           Six Months Ended
                                                           June 30,                                 June 30,
                                                  -----------------------   Percentage     --------------------------   Percentage
                                                     2004         2003       Inc/(Dec)        2004            2003       Inc/(Dec)
                                                  ----------   ----------   ----------     ----------      ----------   ----------
<S>                                               <C>          <C>                 <C>     <C>             <C>                 <C>
Return on average total shareholders' equity (B)       21.2%        20.1%                       21.2%           20.1%
Common shares outstanding (millions)                  1,267        1,286           (1) %       1,267           1,286           (1) %
Book value per common share                       $   11.96    $   11.27            6  %   $   11.96       $   11.27            6  %
Shareholders' equity (billions)                   $    15.2    $    14.5            5  %   $    15.2       $    14.5            5  %
</Table>

(A)  Reflects a $109 million non-cash pretax charge ($71 million after-tax),
     or $0.06 on a basic per share basis and $0.05 on a diluted per share
     basis, related to the January 1, 2004 adoption of SOP 03-1.

(B)  Computed on a trailing 12-month basis using total shareholders' equity as
     included in the Consolidated Financial Statements prepared in accordance
     with GAAP.

                                     -12-

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2 FINANCIALS
<SEQUENCE>3
<FILENAME>ex_992.txt
<DESCRIPTION>FINANCIALS
<TEXT>
                                                                  EXHIBIT 99.2

All information in the following tables is presented on a basis prepared in
accordance with U.S. generally accepted accounting principles (GAAP), unless
otherwise indicated.

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                  CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                  (Unaudited)

<Table>
<Caption>

(Millions)
                                                         Quarters Ended                          Six Months Ended
                                                            June 30,                                 June 30,
                                                    -----------------------   Percentage    --------------------------   Percentage
                                                       2004         2003       Inc/(Dec)       2004            2003       Inc/(Dec)
                                                    ----------   ----------   ----------    ----------      ----------   ----------
<S>                                                 <C>          <C>               <C>      <C>             <C>              <C>
Revenues
  Discount revenue                                  $   2,529    $   2,152         17.5 %   $   4,897       $   4,128         18.6 %
  Management and distribution fees                        750          569         31.8         1,529           1,089         40.4
  Net investment income                                   785          780          0.6         1,526           1,547         (1.4)
  Cardmember lending net finance charge revenue           561          483         15.9         1,102           1,035          6.5
  Net card fees                                           472          455          3.9           944             906          4.3
  Travel commissions and fees                             468          373         25.7           885             713         24.2
  Other commissions and fees                              565          466         21.1         1,094             943         15.9
  Insurance and annuity revenues                          378          341         11.2           742             655         13.3
  Securitization income, net                              282          300         (5.8)          512             511          0.1
  Other                                                   468          437          6.8           937             852         10.0
                                                    ----------   ----------                 ----------      ----------
    Total revenues                                      7,258        6,356         14.2        14,168          12,379         14.5
Expenses
  Human resources                                       1,839        1,576         16.6         3,618           3,066         18.0
  Marketing, promotion, rewards
    and cardmember services                             1,250          944         32.5         2,297           1,719         33.6
  Provision for losses and benefits                     1,080        1,075          0.5         2,102           2,185         (3.8)
  Interest                                                210          231         (9.2)          413             461        (10.5)
  Other operating expenses                              1,613        1,433         12.6         3,224           2,855         13.0
                                                    ----------   ----------                 ----------      ----------
    Total expenses                                      5,992        5,259         14.0        11,654          10,286         13.3
                                                    ----------   ----------                 ----------      ----------
Pretax income before accounting change                  1,266        1,097         15.4         2,514           2,093         20.1
Income tax provision                                      390          335         16.1           773             639         21.0
                                                    ----------   ----------                 ----------      ----------
Income before accounting change                           876          762         15.1         1,741           1,454         19.7
Cumulative effect of accounting change,
  net of tax                                                -            -            -           (71)(A)           -            -
                                                    ----------   ----------                 ----------      ----------
Net income                                          $     876    $     762         15.1     $   1,670       $   1,454         14.9
                                                    ==========   ==========                 ==========      ==========
</Table>

Note: Certain prior period amounts have been reclassified to conform to
current year presentation.

(A)  Reflects a $109 million non-cash pretax charge ($71 million after-tax)
     related to the January 1, 2004 adoption of SOP 03-1.

                                                                            1
<Page>

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                  (Unaudited)

<Table>
<Caption>

(Billions)

                                                       June 30,     December 31,
                                                         2004           2003
                                                     ------------   ------------
<S>                                                  <C>            <C>
Assets
  Cash and cash equivalents                          $         6    $         6
  Accounts receivable                                         32             31
  Investments                                                 58             57
  Loans                                                       34             32
  Separate account assets                                     33             31
  Other assets                                                16             18
                                                     ------------   ------------
    Total assets                                     $       179    $       175
                                                     ============   ============

Liabilities and Shareholders' Equity
  Separate account liabilities                       $        33    $        31
  Short-term debt                                             17             19
  Long-term debt                                              23             21
  Other liabilities                                           91             89
                                                     ------------   ------------
    Total liabilities                                        164            160
                                                     ------------   ------------

  Shareholders' Equity                                        15             15
                                                     ------------   ------------
    Total liabilities and shareholders' equity       $       179    $       175
                                                     ============   ============
</Table>

                                                                            2
<Page>

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                               FINANCIAL SUMMARY
                                  (Unaudited)

<Table>
<Caption>

(Millions)
                                                      Quarters Ended                           Six Months Ended
                                                         June 30,                                  June 30,
                                                  -----------------------   Percentage    --------------------------   Percentage
                                                     2004         2003       Inc/(Dec)       2004            2003       Inc/(Dec)
                                                  ----------   ----------   ----------    ----------      ----------   ----------
<S>                                               <C>          <C>              <C>       <C>             <C>              <C>
REVENUES (A)
  Travel Related Services                         $   5,378    $   4,734         13.6 %   $  10,428       $   9,220         13.1 %
  American Express Financial Advisors                 1,763        1,496         17.9         3,491           2,907         20.1
  American Express Bank                                 203          200          1.8           413             397          4.2
                                                  ----------   ----------                 ----------      ----------
                                                      7,344        6,430         14.2        14,332          12,524         14.4
  Corporate and other,
    including adjustments and eliminations              (86)         (74)       (16.7)         (164)           (145)       (13.0)
                                                  ----------   ----------                 ----------      ----------

CONSOLIDATED REVENUES                             $   7,258    $   6,356         14.2     $  14,168       $  12,379         14.5
                                                  ==========   ==========                 ==========      ==========

PRETAX INCOME (LOSS) BEFORE ACCOUNTING CHANGE
  Travel Related Services                         $   1,079    $     937         15.2     $   2,052       $   1,795         14.3
  American Express Financial Advisors                   264          209         26.5           581             387         50.2
  American Express Bank                                  42           39          9.4            90              68         32.3
                                                  ----------   ----------                 ----------      ----------
                                                      1,385        1,185         17.0         2,723           2,250         18.7
  Corporate and other                                  (119)         (88)       (37.2)         (209)           (157)       (33.2)
                                                  ----------   ----------                 ----------      ----------

PRETAX INCOME BEFORE ACCOUNTING CHANGE            $   1,266    $   1,097         15.4     $   2,514       $   2,093         20.1
                                                  ==========   ==========                 ==========      ==========
NET INCOME (LOSS)
  Travel Related Services                         $     732    $     634         15.6     $   1,397       $   1,218         14.7
  American Express Financial Advisors                   174          157         11.1           331 (B)         290         14.3
  American Express Bank                                  28           27          3.6            58              46         25.2
                                                  ----------   ----------                 ----------      ----------
                                                        934          818         14.3         1,786           1,554         14.9
  Corporate and other                                   (58)         (56)        (4.3)         (116)           (100)       (16.1)
                                                  ----------   ----------                 ----------      ----------

NET INCOME                                        $     876    $     762         15.1     $   1,670 (B)   $   1,454         14.9
                                                  ==========   ==========                 ==========      ==========
</Table>

(A)  Managed net revenues are reported net of American Express Financial
     Advisors' provision for losses and benefits and exclude the effect of
     TRS' securitization activities. The following table reconciles
     consolidated GAAP revenues to Managed Basis net revenues:

<Table>
        <S>                                       <C>          <C>               <C>      <C>             <C>               <C>
        GAAP revenues                             $   7,258    $   6,356         14.2 %   $  14,168       $  12,379         14.5 %
          Effect of TRS securitizations                 196          216                        475             480
          Effect of AEFA provisions                    (532)        (526)                    (1,033)         (1,032)
                                                  ----------   ----------                 ----------      ----------
        Managed net revenues                      $   6,922    $   6,046         14.5     $  13,610       $  11,827         15.1
                                                  ==========   ==========                 ==========      ==========
</Table>

(B)  Reflects a $109 million non-cash pretax charge ($71 million after-tax)
     related to the January 1, 2004 adoption of SOP 03-1.

                                                                            3
<Page>

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                         FINANCIAL SUMMARY (CONTINUED)
                                  (UNAUDITED)

<Table>
<Caption>
                                                       Quarters Ended                           Six Months Ended
                                                          June 30,                                  June 30,
                                                  -----------------------   Percentage     --------------------------   Percentage
                                                     2004         2003       Inc/(Dec)        2004            2003       Inc/(Dec)
                                                  ----------   ----------   ----------     ----------      ----------   ----------
<S>                                               <C>          <C>                 <C>     <C>             <C>                 <C>
EARNINGS PER SHARE

BASIC
  Income before accounting change                 $    0.69    $    0.59           17  %   $    1.37       $    1.13           21  %

  Net income                                      $    0.69    $    0.59           17  %   $    1.31 (A)   $    1.13           16  %
                                                  ==========   ==========                  ==========      ==========

Average common shares outstanding (millions)          1,263        1,283           (2) %       1,270           1,290           (2) %
                                                  ==========   ==========                  ==========      ==========

DILUTED
  Income before accounting change                 $    0.68    $    0.59           15  %   $    1.34       $    1.12           20  %

  Net income                                      $    0.68    $    0.59           15  %   $    1.29 (A)   $    1.12           15  %
                                                  ==========   ==========                  ==========      ==========

Average common shares outstanding (millions)          1,288        1,295           (1)         1,296           1,300            -
                                                  ==========   ==========                  ==========      ==========

Cash dividends declared per common share          $    0.10    $    0.10            -      $    0.20       $    0.18           11  %
                                                  ==========   ==========                  ==========      ==========
</Table>

                       SELECTED STATISTICAL INFORMATION
                                  (Unaudited)

<Table>
<Caption>
                                                       Quarters Ended                           Six Months Ended
                                                           June 30,                                 June 30,
                                                  -----------------------   Percentage     --------------------------   Percentage
                                                     2004         2003       Inc/(Dec)        2004            2003       Inc/(Dec)
                                                  ----------   ----------   ----------     ----------      ----------   ----------
<S>                                               <C>          <C>                 <C>     <C>             <C>                 <C>
Return on average total shareholders' equity (B)       21.2%        20.1%                       21.2%           20.1%
Common shares outstanding (millions)                  1,267        1,286           (1) %       1,267           1,286           (1) %
Book value per common share                       $   11.96    $   11.27            6  %   $   11.96       $   11.27            6  %
Shareholders' equity (billions)                   $    15.2    $    14.5            5  %   $    15.2       $    14.5            5  %
</Table>

(A)  Reflects a $109 million non-cash pretax charge ($71 million after-tax),
     or $0.06 on a basic per share basis and $0.05 on a diluted per share
     basis, related to the January 1, 2004 adoption of SOP 03-1.

(B)  Computed on a trailing 12-month basis using total shareholders' equity as
     included in the Consolidated Financial Statements prepared in accordance
     with GAAP.

                                                                            4
<Page>

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                  CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                  (Unaudited)

<Table>
<Caption>

(Millions)
                                                                                     Quarters Ended
                                                     -------------------------------------------------------------------------------
                                                       June 30,       March 31,       December 31,      September 30,     June 30,
                                                         2004           2004              2003              2003            2003
                                                     ------------   ------------      ------------      -------------   ------------
<S>                                                  <C>            <C>               <C>               <C>             <C>
Revenues
  Discount revenue                                   $     2,529    $     2,368       $     2,432       $      2,221    $     2,152
  Management and distribution fees                           750            779               758                603            569
  Net investment income                                      785            741               786                730            780
  Cardmember lending net finance charge revenue              561            541               531                476            483
  Net card fees                                              472            472               467                462            455
  Travel commissions and fees                                468            417               445                349            373
  Other commissions and fees                                 565            529               531                486            466
  Insurance and annuity revenues                             378            364               366                345            341
  Securitization income, net                                 282            230               293                301            300
  Other                                                      468            469               459                446            437
                                                     ------------   ------------      ------------      -------------   ------------
    Total revenues                                         7,258          6,910             7,068              6,419          6,356
Expenses
  Human resources                                          1,839          1,779             1,708              1,559          1,576
  Marketing, promotion, rewards
    and cardmember services                                1,250          1,047             1,166              1,016            944
  Provision for losses and benefits                        1,080          1,022             1,164              1,080          1,075
  Interest                                                   210            203               205                239            231
  Other operating expenses                                 1,613          1,611             1,735              1,463          1,433
  Restructuring charges                                        -              -                 -                 (2)             -
                                                     ------------   ------------      ------------      -------------   ------------
    Total expenses                                         5,992          5,662             5,978              5,355          5,259
                                                     ------------   ------------      ------------      -------------   ------------
Pretax income before accounting change                     1,266          1,248             1,090              1,064          1,097
Income tax provision                                         390            383               314                294            335
                                                     ------------   ------------      ------------      -------------   ------------
Income before accounting change                              876            865               776                770            762
Cumulative effect of accounting change, net of tax             -            (71)(A)           (13)(B)              -              -
                                                     ------------   ------------      ------------      -------------   ------------
Net income                                           $       876    $       794       $       763       $        770    $       762
                                                     ============   ============      ============      =============   ============
</Table>

Note: Certain prior period amounts have been reclassified to conform to
current year presentation.

(A)  Reflects a $109 million non-cash pretax charge ($71 million after-tax)
     related to the January 1, 2004 adoption of SOP 03-1.

(B)  Reflects a $20 million non-cash pretax charge ($13 million after-tax)
     related to the December 31, 2003 adoption of FIN 46, as revised.

                                                                            5
<Page>

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                               FINANCIAL SUMMARY
                                  (Unaudited)

<Table>
<Caption>

(Millions)
                                                                                     Quarters Ended
                                                     -------------------------------------------------------------------------------
                                                       June 30,       March 31,       December 31,      September 30,     June 30,
                                                         2004           2004              2003              2003            2003
                                                     ------------   ------------      ------------      -------------   ------------
<S>                                                  <C>            <C>               <C>               <C>             <C>
REVENUES (A)
  Travel Related Services                            $     5,378    $     5,050       $     5,211       $      4,758    $     4,734
  American Express Financial Advisors                      1,763          1,728             1,740              1,525          1,496
  American Express Bank                                      203            210               205                199            200
                                                     ------------   ------------      ------------      -------------   ------------
                                                           7,344          6,988             7,156              6,482          6,430
  Corporate and other,
    including adjustments and eliminations                   (86)           (78)              (88)               (63)           (74)
                                                     ------------   ------------      ------------      -------------   ------------

CONSOLIDATED REVENUES                                $     7,258    $     6,910       $     7,068       $      6,419    $     6,356
                                                     ============   ============      ============      =============   ============
PRETAX INCOME (LOSS) BEFORE ACCOUNTING CHANGE
  Travel Related Services                            $     1,079    $       973       $       884       $        892    $       937
  American Express Financial Advisors                        264            317               248                224            209
  American Express Bank                                       42             48                42                 41             39
                                                     ------------   ------------      ------------      -------------   ------------
                                                           1,385          1,338             1,174              1,157          1,185
  Corporate and other                                       (119)           (90)              (84)               (93)           (88)
                                                     ------------   ------------      ------------      -------------   ------------

PRETAX INCOME BEFORE ACCOUNTING CHANGE               $     1,266    $     1,248       $     1,090       $      1,064    $     1,097
                                                     ============   ============      ============      =============   ============

NET INCOME (LOSS)
  Travel Related Services                            $       732    $       665       $       606       $        606    $       634
  American Express Financial Advisors                        174            157 (B)           182 (C)            197            157
  American Express Bank                                       28             30                29                 27             27
                                                     ------------   ------------      ------------      -------------   ------------
                                                             934            852               817                830            818
  Corporate and other                                        (58)           (58)              (54)               (60)           (56)
                                                     ------------   ------------      ------------      -------------   ------------

NET INCOME                                           $       876    $       794 (B)   $       763 (C)   $        770    $       762
                                                     ============   ============      ============      =============   ============
</Table>

(A)  Managed net revenues are reported net of American Express Financial
     Advisors' provision for losses and benefits and exclude the effect of
     TRS' securitization activities. The following table reconciles
     consolidated GAAP revenues to Managed Basis net revenues:

<Table>
       <S>                                           <C>            <C>               <C>               <C>             <C>
       GAAP revenues                                 $     7,258    $     6,910       $     7,068       $      6,419    $     6,356
         Effect of TRS securitizations                       196            279               208                255            216
         Effect of AEFA provisions                          (532)          (501)             (555)              (535)          (526)
                                                     ------------   ------------      ------------      -------------   ------------
         Managed net revenues                        $     6,922    $     6,688       $     6,721       $      6,139    $     6,046
                                                     ============   ============      ============      =============   ============
</Table>

(B)  Reflects a $109 million non-cash pretax charge ($71 million after-tax)
     related to the January 1, 2004 adoption of SOP 03-1.

(C)  Reflects a $20 million non-cash pretax charge ($13 million after-tax)
     related to the December 31, 2003 adoption of FIN 46, as revised.

                                                                            6
<Page>

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                         FINANCIAL SUMMARY (CONTINUED)
                                  (Unaudited)

<Table>
<Caption>
                                                                                   Quarters Ended
                                                   --------------------------------------------------------------------------------
                                                    June 30,        March 31,       December 31,      September 30,      June 30,
                                                      2004            2004              2003              2003             2003
                                                   -----------    ------------      ------------      -------------    ------------
<S>                                                <C>            <C>               <C>               <C>              <C>
EARNINGS PER SHARE

BASIC
  Income before accounting change                  $     0.69     $      0.68       $      0.61       $       0.60     $      0.59

  Net income                                       $     0.69     $      0.62 (A)   $      0.60 (B)   $       0.60     $      0.59
                                                   ===========    ============      ============      =============    ============

Average common shares outstanding (millions)            1,263           1,277             1,277              1,278           1,283
                                                   ===========    ============      ============      =============    ============

DILUTED
  Income before accounting change                  $     0.68     $      0.66       $      0.60       $       0.59     $      0.59

  Net income                                       $     0.68     $      0.61 (A)   $      0.59 (B)   $       0.59     $      0.59
                                                   ===========    ============      ============      =============    ============

Average common shares outstanding (millions)            1,288           1,305             1,299              1,297           1,295
                                                   ===========    ============      ============      =============    ============

Cash dividends declared per common share           $     0.10     $      0.10       $      0.10       $       0.10     $      0.10
                                                   ===========    ============      ============      =============    ============
</Table>

                       SELECTED STATISTICAL INFORMATION
                                  (Unaudited)

<Table>
<Caption>
                                                                                    Quarters Ended
                                                   --------------------------------------------------------------------------------
                                                    June 30,        March 31,       December 31,      September 30,      June 30,
                                                      2004            2004              2003              2003             2003
                                                   -----------    ------------      ------------      -------------    ------------
<S>                                                <C>            <C>               <C>               <C>              <C>
Return on average total shareholders' equity (C)         21.2%           20.7%             20.6%              20.4%           20.1%
Common shares outstanding (millions)                    1,267           1,281             1,284              1,285           1,286
Book value per common share                        $    11.96     $     12.30       $     11.93       $      11.54     $     11.27
Shareholders' equity (billions)                    $     15.2     $      15.7       $      15.3       $       14.8     $      14.5
</Table>

(A)  Reflects a $109 million non-cash pretax charge ($71 million after-tax),
     or $0.06 on a basic per share basis and $0.05 on a diluted per share
     basis, related to the January 1, 2004 adoption of SOP 03-1.

(B)  Reflects a $20 million non-cash pretax charge ($13 million after-tax), or
     $0.01 per share on both a basic and diluted basis, related to the
     December 31, 2003 adoption of FIN 46, as revised.

(C)  Computed on a trailing 12-month basis using total shareholders' equity as
     included in the Consolidated Financial Statements prepared in accordance
     with GAAP.

                                                                            7
<Page>

(Preliminary)

                            TRAVEL RELATED SERVICES
                             STATEMENTS OF INCOME
                                  (Unaudited)

<Table>
<Caption>

(Millions)
                                                            Quarters Ended
                                                               June 30,
                                                     ---------------------------    Percentage
                                                         2004           2003         Inc/(Dec)
                                                     ------------   ------------   ------------
<S>                                                  <C>            <C>                  <C>
Net revenues:
  Discount revenue                                   $     2,529    $     2,152           17.5 %
  Lending:
    Finance charge revenue                                   697            598           16.3
    Interest expense                                         136            115           18.1
                                                     ------------   ------------
      Net finance charge revenue                             561            483           15.9
  Net card fees                                              472            455            3.9
  Travel commissions and fees                                468            373           25.7
  Other commissions and fees                                 551            457           20.6
  Travelers Cheque investment income                          95             92            2.5
  Securitization income, net                                 282            300           (5.8)
  Other revenues                                             420            422           (0.8)
                                                     ------------   ------------
        Total net revenues                                 5,378          4,734           13.6
                                                     ------------   ------------
Expenses:
  Marketing, promotion, rewards
    and cardmember services                                1,225            918           33.3
  Provision for losses and claims:
    Charge card                                              189            205           (7.1)
    Lending                                                  314            278           13.0
    Other                                                     33             37          (13.0)
                                                     ------------   ------------
      Total                                                  536            520            3.3
  Charge card interest expense                               175            204          (14.2)
  Human resources                                          1,081            965           12.0
  Other operating expenses                                 1,282          1,190            7.7
                                                     ------------   ------------
        Total expenses                                     4,299          3,797           13.2
                                                     ------------   ------------
Pretax income                                              1,079            937           15.2
Income tax provision                                         347            303           14.4
                                                     ------------   ------------
Net income                                           $       732    $       634           15.6
                                                     ============   ============
</Table>

Note: Certain prior period amounts have been reclassified to conform to
current year presentation.

                                                                            8
<Page>

(Preliminary)

                            TRAVEL RELATED SERVICES
                        SELECTED FINANCIAL INFORMATION
                                  (Unaudited)

<Table>
<Caption>

Quarters Ended June 30,
(Millions)
                                        GAAP Basis                       Securitization Effect       Managed Basis
                                   ---------------------   Percentage    ---------------------   ---------------------   Percentage
                                     2004        2003       Inc/(Dec)      2004        2003        2004        2003       Inc/(Dec)
                                   ---------   ---------   ----------    ---------   ---------   ---------   ---------   ----------
<S>                                <C>         <C>             <C>       <C>         <C>         <C>         <C>              <C>
Net revenues:
  Discount revenue                 $  2,529    $  2,152         17.5 %
  Lending:
    Finance charge revenue              697         598         16.3     $    489    $    566    $  1,186    $  1,164          1.8 %
    Interest expense                    136         115         18.1           61          95         197         210         (6.3)
                                   ---------   ---------                 ---------   ---------   ---------   ---------
      Net finance charge revenue        561         483         15.9          428         471         989         954          3.6
  Net card fees                         472         455          3.9
  Travel commissions and fees           468         373         25.7
  Other commissions and fees            551         457         20.6           50          45         601         502         19.8
  Travelers Cheque investment
    income                               95          92          2.5
  Securitization income, net            282         300         (5.8)        (282)       (300)          -           -            -
  Other revenues                        420         422         (0.8)
                                   ---------   ---------                 ---------   ---------   ---------   ---------
        Total net revenues            5,378       4,734         13.6          196         216       5,574       4,950         12.6
                                   ---------   ---------                 ---------   ---------   ---------   ---------
Expenses:
  Marketing, promotion, rewards
    and cardmember services           1,225         918         33.3           (6)        (48)      1,219         870         40.2
  Provision for losses and
    claims:
    Charge card                         189         205         (7.1)
    Lending                             314         278         13.0          205         297         519         575         (9.8)
    Other                                33          37        (13.0)
                                   ---------   ---------                 ---------   ---------   ---------   ---------
      Total                             536         520          3.3          205         297         741         817         (9.3)
  Charge card interest expense          175         204        (14.2)
  Human resources                     1,081         965         12.0
  Other operating expenses            1,282       1,190          7.7           (3)        (33)      1,279       1,157         10.4
                                   ---------   ---------                 ---------   ---------   ---------   ---------
        Total expenses                4,299       3,797         13.2     $    196    $    216    $  4,495    $  4,013         12.0
                                   ---------   ---------                 ---------   ---------   ---------   ---------
Pretax income                         1,079         937         15.2
Income tax provision                    347         303         14.4
                                   ---------   ---------
Net income                         $    732    $    634         15.6
                                   =========   =========
</Table>

Note: Certain prior period amounts have been reclassified to conform to
current year presentation.

Securitization income, net represents revenue related to the Company's
securitized loan receivables, which includes net gains and charges from
securitization activity, net finance charge revenue on retained interests
in securitized loans and servicing income, net of related discounts or fees.
Management views the gains from securitizations as discretionary benefits to
be used for card acquisition expenses, which are reflected in marketing,
promotion, rewards and cardmember services expenses and other operating
expenses. Consequently, the above managed Selected Financial Information for
the quarters ended June 30, 2004 and June 30, 2003 assume that net activity of
$9 million and $81 million, respectively, from lending securitizations was
offset by higher marketing, promotion, rewards and cardmember services
expenses of $6 million and $48 million, respectively, and other operating
expenses of $3 million and $33 million, respectively. Accordingly, the
incremental expenses, as well as the net activity, have been eliminated.

                                                                            9
<Page>

(Preliminary)

                            TRAVEL RELATED SERVICES
                        SELECTED FINANCIAL INFORMATION
                                  (Unaudited)

<Table>
<Caption>

Quarters Ended
(Millions)
                                          GAAP Basis                    Securitization Effect                 Managed Basis
                                 ------------------------------   --------------------------------    ------------------------------
                                  March    December   September    March     December    September     March    December   September
                                   31,       31,         30,        31,        31,          30,         31,        31,        30,
                                  2004      2003        2003       2004       2003         2003        2004       2003       2003
                                 -------   --------   ---------   -------    --------    ---------    -------   --------   ---------
<S>                              <C>       <C>        <C>         <C>        <C>         <C>          <C>       <C>        <C>
Net revenues:
  Discount revenue               $ 2,368   $  2,432   $   2,221
  Lending:
    Finance charge revenue           668        654         592   $   539    $    532    $     585    $ 1,207   $  1,186   $   1,177
    Interest expense                 127        123         116        83          84           74        210        207         190
                                 -------   --------   ---------   -------    --------    ---------    -------   --------   ---------
      Net finance charge
        revenue                      541        531         476       456         448          511        997        979         987
  Net card fees                      472        467         462
  Travel commissions and fees        417        445         349
  Other commissions and fees         510        515         465        53          53           45        563        568         510
  Travelers Cheque investment
    income                            93         93          90
  Securitization income, net         230        293         301      (230)       (293)        (301)         -          -           -
  Other revenues                     419        435         394
                                 -------   --------   ---------   -------    --------    ---------    -------   --------   ---------
        Total net revenues         5,050      5,211       4,758       279         208          255      5,329      5,419       5,013
                                 -------   --------   ---------   -------    --------    ---------    -------   --------   ---------
Expenses:
  Marketing, promotion,
    rewards and cardmember
    services                       1,023      1,141         994        (4)          -            -      1,019      1,141         994
  Provision for losses and
    claims:
    Charge card                      198        227         213
    Lending                          287        330         279       287         208          255        574        538         534
    Other                             29         28          31
                                 -------   --------   ---------   -------    --------    ---------    -------   --------   ---------
      Total                          514        585         523       287         208          255        801        793         778
  Charge card interest expense       168        187         186
  Human resources                  1,065      1,003         938
  Other operating expenses         1,307      1,411       1,225        (4)          -            -      1,303      1,411       1,225
                                 -------   --------   ---------   -------    --------    ---------    -------   --------   ---------
        Total expenses             4,077      4,327       3,866   $   279    $    208    $     255    $ 4,356   $  4,535   $   4,121
                                 -------   --------   ---------   -------    --------    ---------    -------   --------   ---------
Pretax income                        973        884         892
Income tax provision                 308        278         286
                                 -------   --------   ---------
Net income                       $   665   $    606   $     606
                                 =======   ========   =========
</Table>

Securitization income, net represents revenue related to the Company's
securitized loan receivables, which includes net gains and charges from
securitization activity, net finance charge revenue on retained interests
in securitized loans and servicing income, net of related discounts or
fees. Management views the gains from securitizations as discretionary
benefits to be used for card acquisition expenses, which are reflected in
marketing, promotion, rewards and cardmember services expenses and other
operating expenses. Consequently, the above managed Selected Financial
Information for the quarter ended March 31, 2004 assumes that net activity of
$8 million from lending securitizations was offset by higher marketing,
promotion, rewards and cardmember services expenses of $4 million and other
operating expenses of $4 million. Accordingly, the incremental expenses, as
well as the net activity, have been eliminated.

                                                                            10
<Page>

(Preliminary)

                            TRAVEL RELATED SERVICES
                       SELECTED STATISTICAL INFORMATION
                                  (Unaudited)

<Table>
<Caption>

(Billions, except percentages and where indicated)
                                                         Quarters Ended
                                                            June 30,
                                                    -------------------------     Percentage
                                                       2004          2003          Inc/(Dec)
                                                    ----------    -----------     -----------
<S>                                                 <C>           <C>                   <C>
Total cards-in-force (millions) (A):
  United States                                          37.5           35.4             5.8%
  Outside the United States                              25.0           22.9             9.5
                                                    ----------    -----------
    Total                                                62.5           58.3             7.3
                                                    ==========    ===========
Basic cards-in-force (millions):
  United States                                          28.5           27.3             4.3%
  Outside the United States                              20.8           18.9            10.3
                                                    ----------    -----------
    Total                                                49.3           46.2             6.8
                                                    ==========    ===========
Card billed business:
  United States                                     $    75.7     $     64.6            17.3%
  Outside the United States                              26.7           21.5            23.9
                                                    ----------    -----------
    Total                                           $   102.4     $     86.1            19.0
                                                    ==========    ===========

Average discount rate (A)                                2.56%          2.59%
Average basic cardmember spending (dollars) (A)     $   2,339     $    2,054            13.9%
Average fee per card  - managed (dollars) (A)       $      34     $       34
Non-Amex brand (B):
  Cards-in-force (millions)                               0.7            0.7             6.4%
  Billed business                                   $     1.0     $      1.0             8.7%
Travel sales                                        $     5.2     $      3.9            34.0%
  Travel commissions and fees/sales (C)                   9.0%           9.6%
Travelers Cheque and prepaid products:
  Sales                                             $     4.8     $      4.4             7.9%
  Average outstanding                               $     6.9     $      6.4             6.5%
  Average investments                               $     7.3     $      6.9             6.2%
  Investment yield                                        5.5%           5.5%
  Tax equivalent yield                                    8.5%           8.4%
Total debt                                          $    38.8     $     34.2            13.4%
Shareholder's equity                                $     8.6     $      7.8            11.1%
Return on average total shareholder's equity (D)         32.1%          31.5%
Return on average total assets (E)                        3.4%           3.4%
</Table>

(A)  Cards-in-force include proprietary cards and cards issued under network
     partnership agreements outside the United States. Average discount rate,
     average basic cardmember spending and average fee per card are computed
     from proprietary card activities only.

(B)  These data relate to Visa and Eurocards issued in connection with joint
     venture activities.

(C)  Computed from information provided herein.

(D)  Computed on a trailing 12-month basis using total shareholder's equity as
     included in the Consolidated Financial Statements prepared in accordance
     with GAAP.

(E)  Computed on a trailing 12-month basis using total assets as included in
     the Consolidated Financial Statements prepared in accordance with GAAP.

                                                                            11
<Page>

(Preliminary)

                            TRAVEL RELATED SERVICES
                 SELECTED STATISTICAL INFORMATION (CONTINUED)
                                  (Unaudited)

<Table>
<Caption>

(Billions, except percentages and where indicated)
                                                         Quarters Ended
                                                            June 30,
                                                  -----------------------------     Percentage
                                                      2004             2003          Inc/(Dec)
                                                  ------------     ------------     -----------
<S>                                               <C>              <C>                   <C>
Worldwide charge card receivables:
  Total receivables                               $      28.4      $      26.0             9.2 %
  90 days past due as a % of total                        1.9%             2.1%
  Loss reserves (millions)                        $       864      $       943            (8.3)%
    % of receivables                                      3.0%             3.6%
    % of 90 days past due                                 163%             171%
  Net loss ratio as a % of charge volume                 0.25%            0.29%

Worldwide lending - owned basis:
  Total loans                                     $      26.4      $      22.6            17.1 %
  Past due loans as a % of total:
    30-89 days                                            1.5%             1.6%
    90+ days                                              1.0%             1.2%
  Loss reserves (millions):
    Beginning balance                             $       994      $     1,025            (3.0)%
      Provision                                           282              256            10.2
      Net charge-offs                                    (267)            (282)           (5.2)
      Other                                                21               18            19.5
                                                  ------------     ------------
    Ending balance                                $     1,030      $     1,017             1.3
                                                  ============     ============
    % of loans                                            3.9%             4.5%
    % of past due                                         154%             161%
  Average loans                                   $      25.9      $      22.0            18.2 %
  Net write-off rate                                      4.1%             5.1%
  Net interest yield                                      9.4%             9.7%

Worldwide lending - managed basis:
  Total loans                                     $      45.1      $      42.1             7.2 %
  Past due loans as a % of total:
    30-89 days                                            1.5%             1.7%
    90+ days                                              1.0%             1.1%
  Loss reserves (millions):
    Beginning balance                             $     1,570      $     1,582            (0.7)%
      Provision                                           486              552           (12.0)
      Net charge-offs                                    (504)            (558)           (9.6)
      Other                                               (17)              18               -
                                                  ------------     ------------
    Ending balance                                $     1,535      $     1,594            (3.7)
                                                  ============     ============
    % of loans                                            3.4%             3.8%
    % of past due                                         136%             137%
  Average loans                                   $      44.9      $      41.2             9.3 %
  Net write-off rate                                      4.5%             5.4%
  Net interest yield                                      8.6%             9.0%
</Table>

Note: Certain prior period amounts have been reclassified to conform to
current year presentation.

                                                                            12
<Page>

(Preliminary)

                            TRAVEL RELATED SERVICES
                             STATEMENTS OF INCOME
                                  (Unaudited)

<Table>
<Caption>

(Millions)
                                                                            Quarters Ended
                                         --------------------------------------------------------------------------------------
                                            June 30,         March 31,        December 31,     September 30,        June 30,
                                              2004             2004              2003              2003               2003
                                         --------------    --------------    --------------    --------------    --------------
<S>                                      <C>               <C>               <C>               <C>               <C>
Net revenues:
  Discount revenue                       $       2,529     $       2,368     $       2,432     $       2,221     $       2,152
  Lending:
    Finance charge revenue                         697               668               654               592               598
    Interest expense                               136               127               123               116               115
                                         --------------    --------------    --------------    --------------    --------------
      Net finance charge revenue                   561               541               531               476               483
  Net card fees                                    472               472               467               462               455
  Travel commissions and fees                      468               417               445               349               373
  Other commissions and fees                       551               510               515               465               457
  Travelers Cheque investment income                95                93                93                90                92
  Securitization income, net                       282               230               293               301               300
  Other revenues                                   420               419               435               394               422
                                         --------------    --------------    --------------    --------------    --------------
        Total net revenues                       5,378             5,050             5,211             4,758             4,734
                                         --------------    --------------    --------------    --------------    --------------
Expenses:
  Marketing, promotion, rewards
    and cardmember services                      1,225             1,023             1,141               994               918
  Provision for losses and claims:
    Charge card                                    189               198               227               213               205
    Lending                                        314               287               330               279               278
    Other                                           33                29                28                31                37
                                         --------------    --------------    --------------    --------------    --------------
      Total                                        536               514               585               523               520
  Charge card interest expense                     175               168               187               186               204
  Human resources                                1,081             1,065             1,003               938               965
  Other operating expenses                       1,282             1,307             1,411             1,225             1,190
                                         --------------    --------------    --------------    --------------    --------------
        Total expenses                           4,299             4,077             4,327             3,866             3,797
                                         --------------    --------------    --------------    --------------    --------------
Pretax income                                    1,079               973               884               892               937
Income tax provision                               347               308               278               286               303
                                         --------------    --------------    --------------    --------------    --------------
Net income                               $         732     $         665     $         606     $         606     $         634
                                         ==============    ==============    ==============    ==============    ==============
</Table>

Note: Certain prior period amounts have been reclassified to conform to
current year presentation.

                                                                            13
<Page>

(Preliminary)

                            TRAVEL RELATED SERVICES
                      SELECTED MANAGED BASIS INFORMATION
                                  (Unaudited)

<Table>
<Caption>

(Millions)                                                                  Quarters Ended
                                        --------------------------------------------------------------------------------------
                                           June 30,         March 31,        December 31,     September 30,        June 30,
                                            2004              2004              2003              2003               2003
                                        --------------    --------------    --------------    --------------    --------------
<S>                                     <C>               <C>               <C>               <C>               <C>
Lending finance charge revenue          $       1,186     $       1,207     $       1,186     $       1,177     $       1,164
Lending interest expense                          197               210               207               190               210
Other commissions and fees                        601               563               568               510               502
Marketing, promotion, rewards
  and cardmember services                       1,219             1,019             1,141               994               870
Lending provision                                 519               574               538               534               575
Other operating expenses                        1,279             1,303             1,411             1,225             1,157
</Table>

Note: Certain prior period amounts have been reclassified to conform to
current year presentation. See prior page for comparable GAAP measures.

                                                                            14
<Page>

(Preliminary)

                            TRAVEL RELATED SERVICES
                       SELECTED STATISTICAL INFORMATION
                                  (Unaudited)

<Table>
<Caption>

(Billions, except percentages and where indicated)
                                                                               Quarters Ended
                                            --------------------------------------------------------------------------------------
                                               June 30,         March 31,        December 31,     September 30,        June 30,
                                                2004              2004              2003              2003               2003
                                            --------------    --------------    --------------    --------------    --------------
<S>                                         <C>               <C>               <C>               <C>               <C>
Total cards-in-force (millions) (A):
  United States                                      37.5              37.0              36.4              35.9              35.4
  Outside the United States                          25.0              24.6              24.1              23.4              22.9
                                            --------------    --------------    --------------    --------------    --------------
    Total                                            62.5              61.6              60.5              59.3              58.3
                                            ==============    ==============    ==============    ==============    ==============
Basic cards-in-force (millions):
  United States                                      28.5              28.1              27.7              27.3              27.3
  Outside the United States                          20.8              20.4              19.9              19.3              18.9
                                            --------------    --------------    --------------    --------------    --------------
    Total                                            49.3              48.5              47.6              46.6              46.2
                                            ==============    ==============    ==============    ==============    ==============
Card billed business:
  United States                             $        75.7     $        70.1     $        72.3     $        66.3     $        64.6
  Outside the United States                          26.7              25.3              26.2              22.5              21.5
                                            --------------    --------------    --------------    --------------    --------------
    Total                                   $       102.4     $        95.4     $        98.5     $        88.8     $        86.1
                                            ==============    ==============    ==============    ==============    ==============

Average discount rate (A)                            2.56%             2.59%             2.56%             2.60%             2.59%
Average basic cardmember spending
  (dollars) (A)                             $       2,339     $       2,202     $       2,314     $       2,101     $       2,054
Average fee per card - managed
 (dollars) (A)                              $          34     $          35     $          35     $          35     $          34
Non-Amex brand (B):
  Cards-in-force (millions)                           0.7               0.7               0.7               0.7               0.7
  Billed business                           $         1.0     $         1.0     $         1.1     $         1.0     $         1.0
Travel sales                                $         5.2     $         4.8     $         4.7     $         3.7     $         3.9
  Travel commissions and fees/sales (C)               9.0%              8.7%              9.5%              9.3%              9.6%
Travelers Cheque and prepaid products:
  Sales                                     $         4.8     $         4.4     $         4.7     $         6.0     $         4.4
  Average outstanding                       $         6.9     $         6.8     $         6.6     $         7.0     $         6.4
  Average investments                       $         7.3     $         7.3     $         7.1     $         7.4     $         6.9
  Investment yield                                    5.5%              5.4%              5.5%              5.2%              5.5%
  Tax equivalent yield                                8.5%              8.3%              8.4%              8.0%              8.4%
Total debt                                  $        38.8     $        38.7     $        38.4     $        33.3     $        34.2
Shareholder's equity                        $         8.6     $         8.1     $         7.9     $         8.0     $         7.8
Return on average total shareholder's
  equity (D)                                         32.1%             31.7%             31.3%             31.2%             31.5%
Return on average total assets (E)                    3.4%              3.4%              3.4%              3.4%              3.4%
</Table>

(A)  Cards-in-force include proprietary cards and cards issued under network
     partnership agreements outside the United States. Average discount rate,
     average basic cardmember spending and average fee per card are computed
     from proprietary card activities only.

(B)  These data relate to Visa and Eurocards issued in connection with joint
     venture activities.

(C)  Computed from information provided herein.

(D)  Computed on a trailing 12-month basis using total shareholder's equity as
     included in the Consolidated Financial Statements prepared in accordance
     with GAAP.

(E)  Computed on a trailing 12-month basis using total assets as included in
     the Consolidated Financial Statements prepared in accordance with GAAP.

                                                                            15
<Page>

(Preliminary)

                            TRAVEL RELATED SERVICES
                 SELECTED STATISTICAL INFORMATION (CONTINUED)
                                  (Unaudited)

<Table>
<Caption>

(Billions, except percentages and where indicated)
                                                                              Quarters Ended
                                           --------------------------------------------------------------------------------------
                                              June 30,         March 31,        December 31,     September 30,        June 30,
                                               2004              2004              2003              2003               2003
                                           --------------    --------------    --------------    --------------    --------------
<S>                                        <C>               <C>               <C>               <C>               <C>
Worldwide charge card receivables:
  Total receivables                        $        28.4     $        27.9     $        28.4     $        26.4     $        26.0
  90 days past due as a % of total                   1.9%              2.0%              1.9%              2.0%              2.1%
  Loss reserves (millions)                 $         864     $         896     $         916     $         921     $         943
    % of receivables                                 3.0%              3.2%              3.2%              3.5%              3.6%
    % of 90 days past due                            163%              164%              171%              174%              171%
  Net loss ratio as a % of charge volume            0.25%             0.26%             0.27%             0.28%             0.29%

Worldwide lending - owned basis:
  Total loans                              $        26.4     $        24.5     $        25.8     $        22.6     $        22.6
  Past due loans as a % of total:
    30-89 days                                       1.5%              1.7%              1.6%              1.7%              1.6%
    90+ days                                         1.0%              1.1%              1.1%              1.1%              1.2%
  Loss reserves (millions):
    Beginning balance                      $         994     $         998     $         938     $       1,017     $       1,025
      Provision                                      282               257               304               261               256
      Net charge-offs                               (267)             (264)             (275)             (282)             (282)
      Other                                           21                 3                31               (58)               18
                                           --------------    --------------    --------------    --------------    --------------
    Ending balance                         $       1,030     $         994     $         998     $         938     $       1,017
                                           ==============    ==============    ==============    ==============    ==============
    % of loans                                       3.9%              4.1%              3.9%              4.2%              4.5%
    % of past due                                    154%              145%              146%              150%              161%
  Average loans                            $        25.9     $        25.1     $        23.8     $        22.5     $        22.0
  Net write-off rate                                 4.1%              4.2%              4.6%              5.0%              5.1%
  Net interest yield                                 9.4%              9.4%              9.6%              9.2%              9.7%

Worldwide lending - managed basis:
  Total loans                              $        45.1     $        44.8     $        45.3     $        42.1     $        42.1
  Past due loans as a % of total:
    30-89 days                                       1.5%              1.7%              1.6%              1.7%              1.7%
    90+ days                                         1.0%              1.0%              1.1%              1.1%              1.1%
  Loss reserves (millions):
    Beginning balance                      $       1,570     $       1,541     $       1,519     $       1,594     $       1,582
      Provision                                      486               545               511               518               552
      Net charge-offs                               (504)             (519)             (520)             (535)             (558)
      Other                                          (17)                3                31               (58)               18
                                           --------------    --------------    --------------    --------------    --------------
    Ending balance                         $       1,535     $       1,570     $       1,541     $       1,519     $       1,594
                                           ==============    ==============    ==============    ==============    ==============
    % of loans                                       3.4%              3.5%              3.4%              3.6%              3.8%
    % of past due                                    136%              128%              127%              128%              137%
  Average loans                            $        44.9     $        44.8     $        43.3     $        42.1     $        41.2
  Net write-off rate                                 4.5%              4.6%              4.8%              5.1%              5.4%
  Net interest yield                                 8.6%              8.7%              8.7%              9.0%              9.0%
</Table>

Note: Certain prior period amounts have been reclassified to conform to
current year presentation.

                                                                            16
<Page>

(Preliminary)

                      AMERICAN EXPRESS FINANCIAL ADVISORS
                             STATEMENTS OF INCOME
                                  (Unaudited)

<Table>
<Caption>

(Millions)
                                                            Quarters Ended
                                                               June 30,
                                                        -----------------------   Percentage
                                                           2004         2003       Inc/(Dec)
                                                        ----------   ----------   ----------
<S>                                                     <C>          <C>              <C>
Revenues:
  Management and distribution fees                      $     752    $     571         31.5 %
  Net investment income                                       603          571          5.6
  Other revenues                                              408          354         15.8
                                                        ----------   ----------
    Total revenues                                          1,763        1,496         17.9
                                                        ----------   ----------

Expenses:
  Provision for losses and benefits:
    Annuities                                                 266          280         (5.3)
    Insurance                                                 218          187         16.0
    Investment certificates                                    48           59        (17.1)
                                                        ----------   ----------
      Total                                                   532          526          1.0
  Human resources                                             646          508         27.3
  Other operating expenses                                    321          253         27.3 (A)
                                                        ----------   ----------
    Total expenses                                          1,499        1,287         16.5
                                                        ----------   ----------
Pretax income                                                 264          209         26.5
Income tax provision                                           90           52         72.5
                                                        ----------   ----------
Net income                                              $     174    $     157         11.1
                                                        ==========   ==========
</Table>

(A) Certain expenses that are included in other operating expenses in the
condensed AEFA segment financial statements above are disaggregated into their
respective reporting lines for consolidated reporting purposes. These expenses
primarily relate to marketing, promotion, rewards and cardmember services and
interest expenses and result in a 32 percent change in other operating expenses
reported on page 3 of the earnings release as compared to a 27 percent change
reported above.

                                                                            17
<Page>

(Preliminary)

                      AMERICAN EXPRESS FINANCIAL ADVISORS
                       SELECTED STATISTICAL INFORMATION
                                  (Unaudited)

<Table>
<Caption>

(Millions, except percentages and where indicated)
                                                             Quarters Ended
                                                                June 30,
                                                        ------------------------    Percentage
                                                           2004          2003        Inc/(Dec)
                                                        ----------    ----------    ----------
<S>                                                     <C>           <C>               <C>
Investments (billions) (A)                              $    41.8     $    42.4          (1.3)%
Client contract reserves (billions)                     $    41.9     $    40.2           4.3 %
Shareholder's equity (billions)                         $     6.3     $     6.7          (5.5)%
Return on average total shareholder's equity
  before accounting change (B)                               11.7%          9.6%
Return on average total shareholder's equity (B)             10.5%          9.6%

Life insurance inforce (billions)                       $   139.1     $   124.4          11.9 %
Assets owned, managed or
  administered (billions):
    Assets managed for institutions (C)                 $   125.5     $    43.8             #
    Assets owned, managed or administered
      for individuals:
      Owned assets:
        Separate account assets (C)                          32.9          24.1          36.8 %
        Other owned assets (C)                               57.9          52.2          10.8
                                                        ----------    ----------
          Total owned assets                                 90.8          76.3          19.0
      Managed assets (C)                                    108.8          87.3          24.6
      Administered assets (D)                                55.3          37.4          47.7
                                                        ----------    ----------
        Total                                           $   380.4     $   244.8          55.4
                                                        ==========    ==========
Market appreciation (depreciation) during
  the period:
  Owned assets:
    Separate account assets                             $    (101)    $   2,620             #
    Other owned assets                                  $  (1,476)    $     399             #
  Managed assets                                        $     232     $   9,457         (97.5)%

Cash sales:
  Mutual funds                                          $   8,480     $   7,150          18.6 %
  Annuities                                                 1,912         2,581         (26.0)
  Investment certificates                                   1,445         1,607         (10.0)
  Life and other insurance products                           221           188          17.3
  Institutional                                             2,841           722             #
  Other                                                     1,116         1,531         (27.1)
                                                        ----------    ----------
Total cash sales                                        $  16,015     $  13,779          16.2
                                                        ==========    ==========

Number of financial advisors                               11,943        11,667           2.4 %
Fees from financial plans and advice services           $    39.3     $    33.5          17.4 %
Percentage of total sales from financial plans
  and advice services                                        74.6%         74.0%
</Table>

# - Denotes a variance of more than 100%.

(A)  Excludes cash, derivatives, short-term and other investments.

(B)  Computed on a trailing 12-month basis using total shareholder's equity as
     included in the Consolidated Financial Statements prepared in accordance
     with GAAP.

(C)  At June 30, 2004, amounts reflect September 30, 2003 Threadneedle
     acquisition balances of $73.2 billion of assets managed for institutions,
     $2.6 billion of separate account assets, $1.0 billion of other owned
     assets and $7.9 billion of assets managed for individuals.

(D)  Excludes non-branded administered assets of $5.4 billion at June 30,
     2003. Assuming such assets had been included, the increase in
     administered assets would have been 29%.

                                                                            18
<Page>

(Preliminary)

                      AMERICAN EXPRESS FINANCIAL ADVISORS
                             STATEMENTS OF INCOME
                                  (Unaudited)

<Table>
<Caption>

(Millions)
                                                                                     Quarters Ended
                                                     -------------------------------------------------------------------------------
                                                       June 30,       March 31,       December 31,      September 30,     June 30,
                                                         2004           2004              2003              2003            2003
                                                     ------------   ------------      ------------      -------------   ------------
<S>                                                  <C>            <C>               <C>               <C>             <C>
Revenues:
  Management and distribution fees                   $       752    $       781       $       759       $        606    $      571
  Net investment income                                      603            556               599                551           571
 Other revenues                                              408            391               382                368           354
                                                     ------------   ------------      ------------      -------------   ------------
   Total revenues                                          1,763          1,728             1,740              1,525         1,496
                                                     ------------   ------------      ------------      -------------   ------------

Expenses:
  Provision for losses and benefits:
   Annuities                                                 266            255               274                277           280
   Insurance                                                 218            201               226                212           187
   Investment certificates                                    48             45                55                 46            59
                                                     ------------   ------------      ------------      -------------   ------------
    Total                                                    532            501               555                535           526
  Human resources                                            646            603               592                511           508
  Other operating expenses                                   321            307               345                255           253
                                                     ------------   ------------      ------------      -------------   ------------
   Total expenses                                          1,499          1,411             1,492              1,301         1,287
                                                     ------------   ------------      ------------      -------------   ------------
Pretax income before accounting change                       264            317               248                224           209
Income tax provision                                          90             89                53                 27            52
                                                     ------------   ------------      ------------      -------------   ------------
Income before accounting change                              174            228               195                197           157
Cumulative effect of accounting change, net of tax             -            (71)(A)           (13)(B)              -             -
                                                     ------------   ------------      ------------      -------------   ------------
Net income                                           $       174    $       157       $       182       $        197    $      157
                                                     ============   ============      ============      =============   ============
</Table>

(A)  Reflects a $109 million non-cash pretax charge ($71 million after-tax)
     related to the January 1, 2004 adoption of SOP 03-1.

(B)  Reflects a $20 million non-cash pretax charge ($13 million after-tax)
     related to the December 31, 2003 adoption of FIN 46, as revised.

                                                                            19
<Page>

(Preliminary)

                      AMERICAN EXPRESS FINANCIAL ADVISORS
                       SELECTED STATISTICAL INFORMATION
                                  (Unaudited)

<Table>
<Caption>

(Millions, except percentages and where indicated)
                                                                                    Quarters Ended
                                                   --------------------------------------------------------------------------------
                                                     June 30,        March 31,      December 31,      September 30,      June 30,
                                                       2004            2004             2003              2003             2003
                                                   ------------    ------------     ------------      -------------    ------------
<S>                                                <C>             <C>              <C>               <C>              <C>
Investments (billions) (A)                         $      41.8     $      43.4      $      42.1       $       42.3     $      42.4
Client contract reserves (billions)                $      41.9     $      41.6      $      41.2       $       40.8     $      40.2
Shareholder's equity (billions)                    $       6.3     $       7.4      $       7.1       $        7.1     $       6.7
Return on average total shareholder's equity
  before accounting change (B)                            11.7%           11.5%            10.4%              10.1%            9.6%
Return on average total shareholder's equity (B)          10.5%           10.2%            10.2%              10.1%            9.6%

Life insurance inforce (billions)                  $     139.1     $     135.0      $     131.4       $      127.5     $     124.4
Assets owned, managed or
  administered (billions):
    Assets managed for institutions (C)            $     125.5     $     123.4      $     116.4 (F)   $      116.7     $      43.8
    Assets owned, managed or administered
      for individuals:
      Owned assets:
        Separate account assets (C)                       32.9            32.4             30.8               27.6            24.1
        Other owned assets (C)                            57.9            58.9             53.8 (E)           53.3            52.2
                                                   ------------    ------------     ------------      -------------    ------------
          Total owned assets                              90.8            91.3             84.6               80.9            76.3
      Managed assets (C)                                 108.8           109.3            110.2               96.6            87.3
      Administered assets (D)                             55.3            54.4             54.1               45.6            37.4
                                                   ------------    ------------     ------------      -------------    ------------
        Total                                      $     380.4     $     378.4      $     365.3       $      339.8     $     244.8
                                                   ============    ============     ============      =============    ============
Market appreciation (depreciation) during
  the period:
  Owned assets:
    Separate account assets                        $      (101)    $       756      $     2,752       $        613     $     2,620
    Other owned assets                             $    (1,476)    $       713      $      (275)      $       (388)    $       399
  Managed assets                                   $       232     $     5,453      $    15,767       $      2,134     $     9,457

Cash sales:
  Mutual funds                                     $     8,480     $     9,799      $     9,096       $      7,361     $     7,150
  Annuities                                              1,912           2,186            1,683              1,866           2,581
  Investment certificates                                1,445           1,324            1,520              1,542           1,607
  Life and other insurance products                        221             218              212                198             188
  Institutional                                          2,841           1,415              939                680             722
  Other                                                  1,116           1,292              978              1,595           1,531
                                                   ------------    ------------     ------------      -------------    ------------
Total cash sales                                   $    16,015     $    16,234      $    14,428       $     13,242     $    13,779
                                                   ============    ============     ============      =============    ============
Number of financial advisors                            11,943          12,070           12,121             11,742          11,667
Fees from financial plans and advice services      $      39.3     $      33.2      $      20.6       $       34.9     $      33.5
Percentage of total sales from financial plans
  and advice services                                     74.6%           75.3%            74.6%              75.0%           74.0%
</Table>

(A)  Excludes cash, derivatives, short-term and other investments.

(B)  Computed on a trailing 12-month basis using total shareholder's equity as
     included in the Consolidated Financial Statements prepared in accordance
     with GAAP.

(C)  At September 30, 2003, includes $73.2 billion of assets managed for
     institutions, $2.6 billion of separate account assets, $1.0 billion of
     other owned assets and $7.9 billion of assets managed for individuals
     related to the September 30, 2003 Threadneedle acquisition.

(D)  Excludes non-branded administered assets of $5.4 billion for the quarter
     ended June 30, 2003.

(E)  As a result of AEFA's December 31, 2003 adoption of FIN 46, as revised,
     $0.5 billion of additional assets were consolidated.

(F)  As a result of AEFA's December 31, 2003 adoption of FIN 46, as revised,
     managed assets decreased by $3.8 billion.

                                                                            20
<Page>

(Preliminary)

                             AMERICAN EXPRESS BANK
                             STATEMENTS OF INCOME
                                  (Unaudited)

<Table>
<Caption>

(Millions)
                                                             Quarters Ended
                                                                June 30,
                                                        -----------------------   Percentage
                                                           2004          2003      Inc/(Dec)
                                                        ----------   ----------   ----------
<S>                                                     <C>          <C>              <C>
Net revenues:
  Interest income                                       $     131    $     148        (12.0)%
  Interest expense                                             51           57        (11.3)
                                                        ----------   ----------
    Net interest income                                        80           91        (12.4)
  Commissions and fees                                         70           57         23.7
  Foreign exchange income and other revenues                   53           52          2.5
                                                        ----------   ----------
    Total net revenues                                        203          200          1.8
                                                        ----------   ----------

Expenses:
  Human resources                                              71           64         11.3
  Other operating expenses                                     78           70         12.0
  Provision for losses                                         12           27        (57.4)
                                                        ----------   ----------
    Total expenses                                            161          161         (0.1)
                                                        ----------   ----------
Pretax income                                                  42           39          9.4
Income tax provision                                           14           12         22.4
                                                        ----------   ----------
Net income                                              $      28    $      27          3.6
                                                        ==========   ==========
</Table>

                                                                            21
<Page>

(Preliminary)

                             AMERICAN EXPRESS BANK
                       SELECTED STATISTICAL INFORMATION
                                  (Unaudited)

<Table>
<Caption>

(Billions, except percentages and where indicated)
                                                             Quarters Ended
                                                                June 30,
                                                        -----------------------   Percentage
                                                           2004         2003       Inc/(Dec)
                                                        ----------   ----------   ----------
<S>                                                     <C>          <C>              <C>
Total shareholder's equity (millions)                   $     953    $     955         (0.2)%
Return on average total shareholder's equity (A)             11.9%        10.5%
Return on average total assets (B)                           0.81%        0.75%
Total loans                                             $     6.5    $     5.8         10.4 %
Total non-performing loans (millions) (C)               $      50    $     102        (50.8)%
Other non-performing assets (millions)                  $       2    $      16        (89.5)%
Reserve for credit losses (millions) (D)                $     105    $     151        (30.4)%
Loan loss reserve as a % of total loans                       1.6%         2.4%
Total Personal Financial Services (PFS) loans           $     1.3    $     1.5         (9.2)%
30+ days past due PFS loans as a % of total PFS loans         5.5%         5.5%
Deposits                                                $    11.2    $    10.1         11.0 %
Assets managed (E) / administered                       $    16.9    $    14.1         19.6 %
Assets of non-consolidated joint ventures (F)           $     1.7    $     1.8         (4.0)%
Risk-based capital ratios (G):
  Tier 1                                                     12.0%        10.5%
  Total                                                      11.8%        10.7%
Leverage ratio                                                5.9%         5.5%
</Table>

(A)  Computed on a trailing 12-month basis using total shareholder's equity as
     included in the Consolidated Financial Statements prepared in accordance
     with GAAP.

(B)  Computed on a trailing 12-month basis using total assets as included in
     the Consolidated Financial Statements prepared in accordance with GAAP.

(C)  AEB defines non-performing loans as loans (other than certain
     smaller-balance loans) on which the accrual of interest is discontinued
     because the contractual payment of principal or interest has become 90
     days past due or if, in management's opinion, the borrower is unlikely to
     meet its contractual obligations. For smaller-balance loans, management
     establishes reserves it believes to be adequate to absorb credit losses
     inherent in the portfolio. Generally, these loans are written off in full
     when an impairment is determined or when the loan becomes 120 or 180 days
     past due, depending on loan type.

(D)  Allocation of reserves (millions):

<Table>
      <S>                                               <C>          <C>
      Loans                                             $     103    $     142
      Other assets, primarily matured foreign
        exchange and other derivative contracts                 1            5
      Other credit-related commitments                          1            4
                                                        ----------   -----------
        Total reserve for credit losses                 $     105    $     151
                                                        ==========   ===========
</Table>

(E)  Includes assets managed by American Express Financial Advisors.

(F)  Excludes American Express International Deposit Company's total assets
     (which are 100% consolidated at AEFA) for each period presented (and
     which totaled $4.8 billion at June 30, 2004).

(G)  Based on legal entity financial information.

                                                                            22
<Page>

(Preliminary)

                             AMERICAN EXPRESS BANK
                             STATEMENTS OF INCOME
                                  (Unaudited)

<Table>
<Caption>

(Millions)
                                                                                    Quarters Ended
                                                    -------------------------------------------------------------------------------
                                                      June 30,        March 31,      December 31,     September 30,      June 30,
                                                        2004            2004             2003             2003             2003
                                                    ------------    ------------     ------------     -------------    ------------
<S>                                                 <C>             <C>              <C>              <C>              <C>
Net revenues:
  Interest income                                   $       131     $       134      $       139      $        139     $       148
  Interest expense                                           51              53               57                52              57
                                                    ------------    ------------     ------------     -------------    ------------
    Net interest income                                      80              81               82                87              91
  Commissions and fees                                       70              70               68                58              57
  Foreign exchange income and other revenues                 53              59               55                54              52
                                                    ------------    ------------     ------------     -------------    ------------
    Total net revenues                                      203             210              205               199             200
                                                    ------------    ------------     ------------     -------------    ------------

Expenses:
  Human resources                                            71              75               75                71              64
  Other operating expenses                                   78              81               67                69              70
  Provision for losses                                       12               6               21                20              27
  Restructuring charges                                       -               -                -                (2)              -
                                                    ------------    ------------     ------------     -------------    ------------
    Total expenses                                          161             162              163               158             161
                                                    ------------    ------------     ------------     -------------    ------------
Pretax income                                                42              48               42                41              39
Income tax provision                                         14              18               13                14              12
                                                    ------------    ------------     ------------     -------------    ------------
Net income                                          $        28     $        30      $        29      $         27     $        27
                                                    ============    ============     ============     =============    ============
</Table>

                                                                            23
<Page>

(Preliminary)

                             AMERICAN EXPRESS BANK
                       SELECTED STATISTICAL INFORMATION
                                  (Unaudited)

<Table>
<Caption>

(Billions, except percentages and where indicated)
                                                                                    Quarters Ended
                                                    -------------------------------------------------------------------------------
                                                      June 30,        March 31,      December 31,     September 30,      June 30,
                                                        2004            2004             2003             2003             2003
                                                    ------------    ------------     ------------     -------------    ------------
<S>                                                 <C>             <C>              <C>              <C>              <C>
Total shareholder's equity (millions)               $       953     $       992      $       949      $        952     $       955
Return on average total shareholder's equity (A)           11.9%           11.9%            10.8%             10.4%           10.5%
Return on average total assets (B)                         0.81%           0.81%            0.74%             0.74%           0.75%
Total loans                                         $       6.5     $       6.4      $       6.5      $        6.2     $       5.8
Total non-performing loans (millions) (C)           $        50     $        69      $        78      $         84     $       102
Other non-performing assets (millions)              $         2     $        10      $        15      $         15     $        16
Reserve for credit losses (millions) (D)            $       105     $       113      $       121      $        125     $       151
Loan loss reserve as a % of total loans                     1.6%            1.7%             1.7%              1.9%            2.4%
Total Personal Financial Services (PFS) loans       $       1.3     $       1.3      $       1.4      $        1.4     $       1.5
30+ days past due PFS loans as a % of total
  PFS loans                                                 5.5%            5.5%             6.6%              5.3%            5.5%
Deposits                                            $      11.2     $      10.7      $      10.8      $       10.6     $      10.1
Assets managed (E) / administered                   $      16.9     $      16.8      $      16.2      $       15.0     $      14.1
Assets of non-consolidated joint ventures (F)       $       1.7     $       1.8      $       1.7      $        1.7     $       1.8
Risk-based capital ratios (G):
  Tier 1                                                   12.0%           11.7%            11.4%             10.5%           10.5%
  Total                                                    11.8%           11.5%            11.3%             10.8%           10.7%
Leverage ratio                                              5.9%            5.7%             5.5%              6.0%            5.5%
</Table>

(A)  Computed on a trailing 12-month basis using total shareholder's equity as
     included in the Consolidated Financial Statements prepared in accordance
     with GAAP.

(B)  Computed on a trailing 12-month basis using total assets as included in
     the Consolidated Financial Statements prepared in accordance with GAAP.

(C)  AEB defines non-performing loans as loans (other than certain
     smaller-balance loans) on which the accrual of interest is discontinued
     because the contractual payment of principal or interest has become 90
     days past due or if, in management's opinion, the borrower is unlikely to
     meet its contractual obligations. For smaller-balance loans, management
     establishes reserves it believes to be adequate to absorb credit losses
     inherent in the portfolio. Generally, these loans are written off in full
     when an impairment is determined or when the loan becomes 120 or 180 days
     past due, depending on loan type.

(D)  Allocation of reserves (millions):

<Table>
      <S>                                           <C>             <C>              <C>              <C>              <C>
      Loans                                         $       103     $       106      $       113      $        117     $       142
      Other assets, primarily matured foreign
        exchange and other derivative contracts               1               6                6                 6               5
      Other credit-related commitments                        1               1                2                 2               4
                                                    ------------    ------------     ------------     -------------    ------------
        Total reserve for credit losses             $       105     $       113      $       121      $        125     $       151
                                                    ============    ============     ============     =============    ============
</Table>

(E)  Includes assets managed by American Express Financial Advisors.

(F)  Excludes American Express International Deposit Company's total assets
     (which are 100% consolidated at AEFA ) for each period presented (and
     which totaled $4.8 billion at June 30, 2004).

(G)  Based on legal entity financial information.

                                                                            24

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.3 NOTES
<SEQUENCE>4
<FILENAME>ex_993.txt
<DESCRIPTION>NOTES
<TEXT>
                                                                    EXHIBIT 99.3


                       [Logo of American Express Company]





                                      2004
                                 SECOND QUARTER
                               EARNINGS SUPPLEMENT







     The enclosed summary should be read in conjunction with the text and
     statistical tables included in American Express Company's (the "Company"
     or "AXP") Second Quarter 2004 Earnings Release.


     ---------------------------------------------------------------------------
     THIS SUMMARY CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS THAT ARE SUBJECT
     TO RISKS AND UNCERTAINTIES AND SPEAK ONLY AS OF THE DATE ON WHICH THEY
     ARE MADE. IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER
     MATERIALLY FROM THESE FORWARD-LOOKING STATEMENTS, INCLUDING THE COMPANY'S
     FINANCIAL AND OTHER GOALS, ARE SET FORTH ON PAGE 16 HEREIN AND IN THE
     COMPANY'S 2003 10-K ANNUAL REPORT, AND OTHER REPORTS, ON FILE WITH THE
     SECURITIES AND EXCHANGE COMMISSION.
     ---------------------------------------------------------------------------


<PAGE>


                         AMERICAN EXPRESS COMPANY
                           SECOND QUARTER 2004
                                HIGHLIGHTS

o      Second quarter diluted EPS of $0.68 increased 15% versus $0.59 last
       year. GAAP revenues rose 14%. For the trailing 12 months, ROE was 21%.

       -  2Q '04 included:
          --   Lower net lending securitization gains of $9MM versus $81MM
               in 2Q '03 at TRS;
          --   Net pre-tax investment gains of $30MM versus net pre-tax
               investment losses of $16MM in 2Q '03 at AEFA; and
          --   Higher costs related to industry regulatory and legal matters
               at AEFA.

o      Compared with the second quarter of 2003:

       - Worldwide billed business increased 19% on continued strong
         consumer, small business and Corporate Services spending growth. A
         comparatively weaker U.S. dollar benefited the reported growth rate
         by 1%;

          --  Worldwide average spending per basic card in force increased 14%
              versus last year (up 12% adjusted for foreign exchange
              translation);

       -  TRS' worldwide lending balances on an owned basis of $26.4B increased
          17%, while on a managed basis, worldwide lending balances of $45.1B
          were up 7% (see discussion of "managed basis" on page 6);

       -  Card credit quality continued to be well controlled and reserve
          coverage ratios remained strong;

       -  Worldwide cards in force of 62.5MM increased 7%, up 4.2MM from last
          year and 0.9MM during 2Q `04; and,

       -  AEFA assets owned, managed and administered of $380B were up 55% vs.
          last year reflecting the benefit of $85B of Threadneedle owned and
          managed assets acquired effective 9/30/03, market appreciation and
          asset inflows. Excluding the Threadneedle assets acquired at 9/30/03,
          AEFA assets owned, managed and administered rose 21%.


o      Additional items of note included:

       - Marketing, promotion, rewards and cardmember services costs increased
         33% versus 2Q '03 as a result of increased rewards costs, reflecting
         strong volume growth, a higher redemption rate, and the increase in
         cardmember loyalty program participation, as well as our continued
         focus on business building activities. Improved metric performance
         during the quarter reflected the benefits of the increased spending
         over the last two years.

       - Lower funding costs continued to provide benefits, although to a
         lesser extent than last year's benefits.

       - The Company's reengineering initiatives are on track to deliver the
         $1B of additional benefits targeted for this year, including
         significant carry-over benefits from certain initiatives begun in
         prior periods. During the second quarter, reengineering initiatives
         continued to provide substantial year-over-year expense comparison
         benefits. In addition, revenue-related reengineering activities are
         driving a significant portion of the total benefits, representing
         over 30% of the benefits delivered in 2Q `04.

         -- Compared with last year, the total employee count of 78,800 rose
            5% due to the 3Q '03 and 4Q '03 addition of 3,700 Threadneedle
            and Rosenbluth employees, and was essentially flat with last
            quarter. Excluding these acquisitions, the number of total
            employees was up 1% versus 6/30/03; compared with 12/31/01, the
            total employee count was down 8,800, or 10%.

       - As previously disclosed, the Company decided to expense stock
         options beginning in 1Q '03 and use restricted stock awards in
         place of stock options for middle management. As a result, the 2Q
         '04 impacts of incremental annual option grant expense,
         increased levels of restricted stock awards and other related
         compensation changes contributed to the increase in human resources
         expense.

                                       -1-
<PAGE>


                            AMERICAN EXPRESS COMPANY
                               SECOND QUARTER 2004
                               HIGHLIGHTS (Cont'd)

o    During the quarter, American Express continued to invest in growth
     opportunities through expanded products and services.
     -  At TRS, we:

         --   Signed a new multi-year agreement with Costco, reaffirming our
              mutual commitment to this successful partnership;

         --   Announced OPEN SAVINGS(SM), a new program for OPEN: The Small
              Business Network customers, offering small business owners
              combinable and trackable savings on business purchases from
              partners including AT&T, FedEx(R), Hertz(R), Staples(R), and
              others when they use their American Express Business Cards;

         --   Launched Business Savings for merchants in the U.S. that accept
              the American Express Card, enabling them to enjoy a wide variety
              of opportunities to reduce business expenses such as office
              supplies, temporary staffing, cellular phone service, and
              shipping through savings offered by partners such as Office
              Depot and Nextel;

         --   Announced a comprehensive travel management offering for the
              small- and mid-sized business travel segment in the U.S.,
              featuring Webfare guarantees, a new travel management loyalty
              program with double Membership Rewards(R) Points for individual
              travelers, and automatic ticket refunds;

         --   Launched the American Express Gold Corporate Card in Brazil;

         --   Launched the American Express Blue Credit Card denominated in
              Bahraini dinars;

         --   Introduced AMERICAN EXPRESS SELECTS, a new benefit for consumers
              carrying American Express-branded cards worldwide, with close to
              one thousand offers of high quality shopping, dining and travel
              values from merchants in 11 countries;

         --   Announced a strategic alliance with TAIB Bank E.C. to offer
              American Express Platinum Cards to TAIB Bank private banking
              clients in the Middle East;

         --   Announced a partnership with Banco de Venezuela/Grupo Santander
              to issue a line of American Express-branded Classic, Gold and
              Platinum Cards in Venezuela;

         --   Signed an agreement to distribute American Express Platinum and
              Gold Cards to customers of Banco Banif, the private banking
              division of Grupo Santander in Spain;

         --   Signed an agreement with Deutsche Bank to launch a
              jointly-branded American Express Corporate Card and Business
              Travel Account program issued by American Express and
              distributed by Deutsche Bank in Germany to its corporate
              customers, as well as their selected subsidiaries worldwide;

         --   Forged an alliance with the Sichuan branch of China
              International Travel Service, a major Chinese travel agency, to
              establish an American Express Travel presence in Western China;

         --   Entered into an exclusive agreement with Kreditkort hf. to become
              the sole merchant acquirer for American Express in Iceland; and

         --   Formed a strategic business partnership with Paradigm Total
              Salary Management in Australia for both employees and employers
              to benefit from outsourced salary packaging administration.

     -  At AEFA, we:

         --   Began the nationwide rollout of American Express Gold Financial
              ServicesSM, which offers personalized solutions to help mass
              affluent consumers achieve their goals through a unique
              combination of one-to-one and preferred offers, including a
              complimentary American Express Gold Card; and

         --   Launched 10 new Select Variable Annuities through the third party
              distribution group.
     - At AEB, we:

         --   Expanded into Australia and commenced offering correspondent
              banking services under our new banking license there.

                                      -2-
<PAGE>


                      AMERICAN EXPRESS COMPANY
                    SECOND QUARTER 2004 OVERVIEW
                            CONSOLIDATED
<TABLE>
<CAPTION>
(Preliminary)

                   Condensed Statements of Income
                      (Unaudited, GAAP basis)

                                                                        Quarters Ended                  Percentage
(millions)                                                                  June 30,                     Inc/(Dec)
                                                                    -------------------------------    -------------
                                                                       2004             2003
                                                                       ----             ----
<S>                                                                <C>              <C>                  <C>
Revenues:
     Discount revenue                                                $2,529           $2,152               18%
     Management and distribution fees                                   750              569               32
     Net investment income                                              785              780                1
     Cardmember lending net finance charge revenue                      561              483               16
     Net card fees                                                      472              455                4
     Travel commissions and fees                                        468              373               26
     Other commissions and fees                                         565              466               21
     Insurance and annuity revenues                                     378              341               11
     Securitization income, net                                         282              300               (6)
     Other                                                              468              437                7
                                                                     ------           ------
          Total revenues                                              7,258            6,356               14
                                                                     ------           ------
Expenses:
     Human resources                                                  1,839            1,576               17
     Marketing, promotion, rewards and cardmember services            1,250              944               33
     Provision for losses and benefits                                1,080            1,075                -
     Interest                                                           210              231               (9)
     Other operating expenses                                         1,613            1,433               13
                                                                     ------            -----
          Total expenses                                              5,992            5,259               14
                                                                     ------            -----
Pre-tax income                                                        1,266            1,097               15
Income tax provision                                                    390              335               16
                                                                     ------            -----
Net income                                                             $876             $762               15
                                                                     ======            =====

EPS:
Net Income - Basic                                                    $0.69            $0.59               17
                                                                     ======            =====

Net Income - Diluted                                                  $0.68            $0.59               15
                                                                     ======            =====
</TABLE>

Note:  Certain prior period amounts have been reclassified to conform to the
       current year presentation.

o    Net income increased 15%.

o    CONSOLIDATED REVENUES: Revenues increased 14% due to greater discount
     revenues, higher management and distribution fees, greater travel and
     other commissions and fees, higher cardmember lending net finance charge
     revenue, larger insurance and annuity revenues, higher net card fees, and
     greater other revenue. These increases were partially offset by lower net
     securitization income. The Threadneedle and Rosenbluth acquisitions
     contributed approximately 2% to the revenue growth rate; the effect on
     net income was not material. Consolidated revenue growth versus last year
     reflected 14% growth at TRS, 18% growth at AEFA, and 2% growth at AEB.
     Translation of foreign currency revenues contributed approximately 1% of
     the 14% revenue growth rate.

o    CONSOLIDATED EXPENSES: Expenses were up 14%, reflecting higher marketing,
     promotion, rewards and cardmember services expenses, greater human
     resources costs and increased other operating expenses. These increases
     were partially offset by lower funding costs and the benefits of
     reengineering activities and expense control initiatives. Consolidated
     expenses reflected increases versus last year of 13% at TRS and 17% at
     AEFA, while AEB expenses were flat. Translation of foreign currency
     expenses contributed approximately 1% of the 14% expense growth rate.

o    The pre-tax margin was 17.4% in 2Q '04 versus 18.1% in 1Q '04 and 17.3%
     in 2Q '03.

o    The effective tax rate was 31% in 2Q '04, 1Q '04 and 2Q '03.

                                      -3-
<PAGE>
                            AMERICAN EXPRESS COMPANY
                          SECOND QUARTER 2004 OVERVIEW
                              CONSOLIDATED (Cont'd)

o    SHARE REPURCHASES: During 2Q '04, 19MM shares were repurchased. Since the
     inception of repurchase programs in September 1994, 465MM shares have
     been acquired under cumulative Board authorizations to repurchase up to
     570MM shares, including purchases made under agreements with third
     parties.

<TABLE>
<CAPTION>
                                                                                       Millions of Shares
                                                                           ---------------------------------------
<S>                                                                      <C>            <C>               <C>
     -    AVERAGE SHARES:                                                  2Q `04         1Q `04            2Q `03
                                                                           ------         ------            ------
           Basic                                                            1,263          1,277             1,283
                                                                           ======         ======            ======
           Diluted                                                          1,288          1,305             1,295
                                                                           ======         ======            ======

     -    ACTUAL SHARES:

           Shares outstanding - beginning of period                         1,281          1,284             1,298
           Repurchase of common shares                                        (19)          (20)                (5)
           Prepayments - 3rd party share purchase agreements                    -              -                (9)
           Net settlements - 3rd party share purchase agreements                -              -                (1)
           Employee benefit plans, compensation and other                       5             17*                3
                                                                            -----          -----            ------
           Shares outstanding - end of period                               1,267          1,281             1,286
                                                                            =====         ======            ======
</TABLE>

          * Includes 13MM net shares issued through employee stock option
            exercises.

o    SUPPLEMENTAL INFORMATION - MANAGED NET REVENUES: The
     following supplemental revenue information is presented on the basis
     used by management to evaluate operations. It differs in two
     respects from the GAAP basis revenues, which are prepared in
     accordance with accounting principles generally accepted in the
     United States (GAAP). First, revenues are presented as if there had
     been no asset lending securitizations at TRS. This format is
     generally termed on a "managed basis", as further discussed in the
     TRS section of this Earnings Supplement. Second, revenues are
     considered net of AEFA's provisions for losses and benefits for
     annuities, insurance and investment certificate products, which are
     essentially spread businesses, as further discussed in the AEFA
     section of this Earnings Supplement. A reconciliation of
     consolidated revenues from a GAAP to a net managed basis is as
     follows:

     (millions)                                                   Percentage
                                            2Q `04    2Q `03        Inc/(Dec)
                                           -------   -------      -----------
     GAAP revenues                         $ 7,258   $ 6,356            14%
        Effect of TRS securitizations          196       216
        Effect of AEFA provisions for
           losses and benefits                (532)     (526)
                                           -------   -------
     Managed net revenues                  $ 6,922   $ 6,046            15%
                                           =======   =======

- -        Consolidated net revenues on a managed basis increased 15% versus
         last year due to greater discount revenues, increased management and
         distribution fees, higher travel and other commissions and fees,
         larger insurance and annuity revenues, higher net card fees and
         increased other revenues.


                               CORPORATE AND OTHER


o    The net expense was $58MM in 2Q '04 compared with $58MM in 1Q '04 and
     $56MM in 2Q '03. 2Q '04 reflects an $18MM benefit from the final
     settlement of the Federal tax audit for the period 1989-1992, offset by
     higher interest expense versus last year related to corporate debt
     issuances over the last 12 months, and higher corporate investment
     spending versus 1Q '04 and 2Q '03 on compliance and technology projects.

                                      -4-
<PAGE>


                            AMERICAN EXPRESS COMPANY
                          SECOND QUARTER 2004 OVERVIEW
                             TRAVEL RELATED SERVICES
<TABLE>
<CAPTION>
(Preliminary)
                              STATEMENTS OF INCOME
                             (Unaudited, GAAP basis)

                                                                       Quarters Ended                 Percentage
(millions)                                                                June 30,                      Inc/(Dec)
                                                                 ---------------------------          -----------
                                                                    2004                2003
                                                                    ----                ----
<S>                                                           <C>                 <C>                   <C>
Net revenues:
     Discount revenue                                             $2,529              $2,152                18%
     Lending:
       Finance charge revenue                                        697                 598                16
       Interest expense                                              136                 115                18
                                                                  ------              ------
         Net finance charge revenue                                  561                 483                16
     Net card fees                                                   472                 455                 4
     Travel commissions and fees                                     468                 373                26
     Other commissions and fees                                      551                 457                21
     TC investment income                                             95                  92                 2
     Securitization income, net                                      282                 300                (6)
     Other revenues                                                  420                 422                (1)
                                                                  ------              ------
         Total net revenues                                        5,378               4,734                14
                                                                  ------              ------
Expenses:
     Marketing, promotion, rewards and cardmember services         1,225                 918                33
     Provision for losses and claims:
       Charge card                                                   189                 205                (7)
       Lending                                                       314                 278                13
       Other                                                          33                  37               (13)
                                                                 -------              ------
         Total                                                       536                 520                 3
                                                                 -------              ------
     Charge card interest expense                                    175                 204               (14)
     Human resources                                               1,081                 965                12
     Other operating expenses                                      1,282               1,190                 8
                                                                  ------               -----
         Total expenses                                            4,299               3,797                13
                                                                   -----               -----
Pre-tax income                                                     1,079                 937                15
Income tax provision                                                 347                 303                14
                                                                 -------              ------
Net income                                                          $732                $634                16
                                                                  ======               =====
</TABLE>

Note:  Certain prior period amounts have been reclassified to conform to the
       current year presentation.

o        Net income increased 16%.
         - The Rosenbluth acquisition, which was completed in October 2003,
           added approximately 1% to revenue growth, but had a minimal impact
           on net income.

o        The pre-tax margin was 20.1% in 2Q `04 versus 19.3% in 1Q `04 and
         19.8% in 2Q '03.

o        The effective tax rate was 32% in 2Q '04, 1Q '04 and 2Q '03.

o        IMPACT OF SECURITIZATIONS: During 2Q '04, TRS recognized a
         net pre-tax gain of $9MM ($6MM after-tax) related to net lending
         securitization activity. This net gain consisted of $119MM ($77MM
         after-tax) from the securitization of $1.0B of U.S. lending
         receivables and the sale of $1.4B of collateral interests previously
         issued by the Trusts, and charges of $110MM ($71MM after-tax)
         related to the maturity of $2.5B of securitizations and changes in
         I/O assumption factors, including paydown rates and yields. During
         2Q '03, TRS recognized a net pre-tax gain of $81MM ($53MM after-tax)
         related to the incremental securitization of $1.5B of net U.S.
         lending receivables, which was net of a pre-tax loss of $41MM ($27MM
         after-tax) related to the maturity of a $1.0B securitization. The
         average balance of cardmember lending securitizations was $18.9B in
         2Q '04 versus $19.0B in 2Q '03.

     - SECURITIZATION INCOME, NET decreased 6%.
         --   Securitization income, net represents revenue related to the
              Company's securitized loan receivables, which includes net gains
              and charges from securitization activity, net finance charge
              revenue on retained interests in securitized loans, and
              servicing income, net of related discounts and fees.

     -  NET FINANCE CHARGE REVENUE increased 16%, reflecting 18% growth in the
        average balance of the owned lending portfolio for the period, partially
        offset by a lower yield.

     -   THE LENDING PROVISION increased 13% reflecting growth in the owned
         lending portfolio.

     -   The above GAAP basis items relating to net finance charge revenue and
         lending provision reflect the owned portfolio only. "Owned basis"
         credit quality statistics are available in the Second Quarter 2004
         Earnings Release on the TRS Selected Statistical Information pages.

                                      -5-
<PAGE>



                      AMERICAN EXPRESS COMPANY
                    SECOND QUARTER 2004 OVERVIEW
                  TRAVEL RELATED SERVICES (Cont'd)


SUPPLEMENTAL INFORMATION - MANAGED BASIS: The following supplemental table
includes information on both a GAAP basis and a "managed" basis. The managed
basis presentation assumes there have been no securitization transactions,
i.e., all securitized Cardmember loans and related income effects are
reflected in the Company's balance sheet and income statement, respectively.
The Company presents TRS information on a managed basis because that is the
way the Company's management views and manages the business. Management
believes that a full picture of trends in the Company's Cardmember lending
business can only be derived by evaluating the performance of both securitized
and non-securitized Cardmember loans. Asset securitization is just one of
several ways for the Company to fund Cardmember loans.

Use of a managed basis presentation, including non-securitized and securitized
Cardmember loans, presents a more accurate picture of the key dynamics of the
Cardmember lending business, avoiding distortions due to the mix of funding
sources at any particular point in time. For example, irrespective of the mix,
it is important for management and investors to see metrics, such as changes
in delinquencies and write-off rates, for the entire Cardmember lending
portfolio because it is more representative of the economics of the aggregate
Cardmember relationships and ongoing business performance and trends over
time. It is also important for investors to see the overall growth of
Cardmember loans and related revenue and changes in market share, which are
all significant metrics in evaluating the Company's performance and which can
only be properly assessed when all non-securitized and securitized Cardmember
loans are viewed together on a managed basis.

Management views the gains from securitizations as discretionary benefits to
be used for card acquisition expenses, which are reflected in both marketing,
promotion, rewards and cardmember services and other operating expenses.
Consequently, the managed basis presentation assumes that during 2Q '04 and 2Q
'03 the net lending securitization activity was offset by higher marketing,
promotion, rewards and cardmember services expenses of $6MM and $48MM,
respectively, and other operating expenses of $3MM and $33MM, respectively.
Accordingly, the incremental expenses, as well as the impact of the net
lending securitization activity, have been eliminated.

The following table compares and reconciles the GAAP basis TRS income
statements to the managed basis information, where different.
<TABLE>
<CAPTION>

                                                                               Effect of Securitizations (unaudited)
                                                                          -----------------------------------------------
 (preliminary, millions)
                                      GAAP Basis (unaudited)           Securitization Effect         Managed Basis
                                   --------------------------          --------------------- ----------------------------
                                                   Percentage                                                  Percentage
Quarters Ended June 30,              2004    2003   Inc/(Dec)             2004      2003       2004      2003  Inc/(Dec)
                                   --------------------------          --------------------- ----------------------------
<S>                               <C>     <C>       <C>               <C>       <C>      <C>       <C>           <C>
Net revenues:
  Discount revenue                 $2,529  $2,152      18%
  Lending:
    Finance charge revenue            697     598       16                $489      $566     $1,186    $1,164        2%
    Interest expense                  136     115       18                  61        95        197       210       (6)
                                   ------ -------  ----------            -----     -----      -----      ----  ---------
      Net finance charge revenue      561     483       16                 428       471        989       954        4
  Net card fees                       472     455        4
  Travel commissions and fees         468     373       26
  Other commissions and fees          551     457       21                  50        45        601       502       20
  TC investment income                 95      92        2
  Securitization income, net          282     300       (6)               (282)     (300)         -         -        -
  Other revenues                      420     422       (1)
                                   ------ -------  ----------            -----     -----      -----     -----  ---------
        Total net revenues          5,378   4,734       14                 196       216      5,574     4,950       13
                                   ------ -------  ----------            -----     -----      -----     -----  ---------
Expenses:
  Marketing, promotion, rewards
    and cardmember services         1,225     918       33                  (6)      (48)     1,219       870       40
  Provision for losses and claims:
    Charge card                       189     205       (7)
    Lending                           314     278       13                 205       297        519       575      (10)
    Other                              33      37      (13)
                                   ------ -------  ----------            -----     -----      -----     -----  ---------
      Total                           536     520        3                 205       297        741       817       (9)
  Charge card interest expense        175     204      (14)
  Human resources                   1,081     965       12
  Other operating expenses          1,282   1,190        8                 (3)       (33)     1,279     1,157       10
                                   ------ -------  ----------            -----     -----      -----     -----  ---------
        Total expenses              4,299   3,797       13                $196      $216     $4,495    $4,013       12
                                   ------ -------  ----------            -----     -----      -----     -----  ---------
Pre-tax income                      1,079     937       15
Income tax provision                  347     303       14
                                   ------ -------  ----------
Net income                           $732    $634       16
                                   ------ -------  ----------
</TABLE>

Note:  Certain prior period amounts have been reclassified to conform to the
       current year presentation.

                                      -6-
<PAGE>


                      AMERICAN EXPRESS COMPANY
                    SECOND QUARTER 2004 OVERVIEW
                  TRAVEL RELATED SERVICES (Cont'd)


The following discussion addresses results on a managed basis.

o    Managed basis net revenue rose 13% from higher Cardmember spending,
     greater travel and other commissions and fees, higher net finance charge
     revenue, and increased cards in force.

o    The 12% higher managed basis expenses reflect substantially higher
     marketing, promotion, rewards and cardmember services costs, greater
     human resources expenses and increased other operating expenses,
     partially offset by lower interest costs, reduced provisions for losses
     and cost control initiatives.

o    DISCOUNT REVENUE: A 19% increase in billed business, partially offset by
     a lower discount rate, yielded an 18% increase in discount revenue.
     - The average discount rate was 2.56% in 2Q `04 versus 2.59% in 1Q `04
       and 2Q `03. The decrease versus last quarter and last year primarily
       reflects changes in the mix of spending between various merchant
       segments due to the cumulative impact of stronger than average growth in
       the lower rate retail and other "everyday spend" merchant categories
       (e.g., supermarkets, discounters, etc).
         --   We believe the AXP value proposition is strong. However, as
              indicated in prior quarters, continued changes in the mix of
              business, volume related pricing discounts and selective
              repricing initiatives will probably continue to result in some
              average rate erosion over time.
<TABLE>
<CAPTION>
                                                                            Quarters Ended           Percentage
                                                                               June 30,               Inc/(Dec)
                                                                   ----------------------------    --------------
                                                                   2004               2003
                                                                   ----               ----
<S>                                                              <C>                <C>                 <C>
      Card billed business (billions):
           United States                                           $75.7              $64.6               17%
           Outside the United States                                26.7               21.5               24
                                                                   -----              -----
           Total                                                  $102.4              $86.1               19
                                                                   =====              =====

      Cards in force (millions):
           United States                                            37.5               35.4 (b)            6
           Outside the United States                                25.0               22.9               10
                                                                   -----              -----
           Total                                                    62.5               58.3 (b)            7
                                                                   =====              =====

      Basic cards in force (millions):
           United States                                            28.5               27.3                4
           Outside the United States                                20.8               18.9               10
                                                                   -----              -----
           Total                                                    49.3               46.2                7
                                                                   =====              =====

      Spending per basic card in force (dollars): (a)
           United States                                         $2,676             $2,373                13
           Outside the United States                             $1,643             $1,401                17
           Total                                                 $2,339             $2,054                14

</TABLE>

      (a) Proprietary card activity only.
      (b) Prior year amounts have been reduced reflecting a 4Q '03 correction
          of the number of supplemental cards-in-force.

     - BILLED BUSINESS: The 19% increase in worldwide billed business
       resulted from a 14% increase in spending per basic cardmember and 7%
       growth in cards in force.
       -- U.S. billed business was up 17% reflecting growth of 17% within the
          consumer card business, a 22% increase in small business and 15%
          improvement in Corporate Services volumes.
          -   Spending per basic card in force increased 13%.
       -- Excluding the impact of foreign exchange translation:
          -   Worldwide billed business and spending per proprietary basic
              card in force increased 17% and 12%, respectively.
          -   Total billed business outside the U.S. was up 18% reflecting
              strong double-digit growth across all regions.
          -   Global Network Services volumes grew nearly 30%.
          -   Within our proprietary business, billed business outside the
              U.S. reflected growth in consumer and small business
              spending of 15% and a 20% increase in Corporate Services
              volumes.
          -   Spending per proprietary basic card in force outside the U.S.
              rose 11%.
       --   U.S. non-T&E related volume categories (which represented
            approximately 66% of 2Q `04 U.S. billed business) grew 20%,
            while T&E volumes rose 13%, reflecting general strength across
            all T&E industries.
       --   U.S. airline related volume, which represented approximately 11%
            of total volumes during the quarter, rose 15%. Worldwide airline
            volumes, which represented approximately 13% of total volumes
            during the quarter, increased 19% on 15% growth in transaction
            volume and a 4% increase in the average airline charge.

                                      -7-
<PAGE>


                      AMERICAN EXPRESS COMPANY
                    SECOND QUARTER 2004 OVERVIEW
                  TRAVEL RELATED SERVICES (Cont'd)

o    DISCOUNT REVENUE (cont'd):

     -   CARDS IN FORCE worldwide rose 7% versus last year on continued strong
         card acquisitions and an improved average customer retention level.
         -- U.S. cards in force rose 500K during the quarter.
         -- Outside the United States, 400K cards in force were added during
            the quarter on growth in both proprietary and network partner cards.

o    NET CARD FEES:  Rose 4% due to higher cards in force. The average annual
     fee per proprietary card in force was $34 in 2Q '04, $35 in 1Q '04 and
     $34 2Q '03.

o    NET FINANCE CHARGE REVENUE: Increased 4% as 9% growth in average
     worldwide lending balances was partially offset by a decline in the
     portfolio yield.
       - The yield on the worldwide portfolio was 8.6% in 2Q
        '04 versus 8.7% in 1Q '04 and 9.0% in 2Q '03. The decrease versus
         last year reflects an increase in the proportion of the portfolio on
         promotional rates, a decrease in the rates on those balances, higher
         paydown rates and improved credit, partially offset by lower funding
         costs.

o    TRAVEL COMMISSIONS AND FEES: Increased 26% on a 34% increase in travel
     sales reflecting the Rosenbluth acquisition and improvement within the
     travel environment. Excluding the benefits of the Rosenbluth acquisition,
     growth in travel commissions and fees and travel sales was 14% and 22%,
     respectively.

o    TC INVESTMENT INCOME:  Increased 2% on higher average investments and a
     flat pre-tax yield.  TC sales increased 8% versus last year.

o    OTHER COMMISSIONS AND FEES:  Increased 20% on greater volume-related
     foreign exchange conversion fees and higher card fees and assessments.

o    OTHER REVENUES: Decreased 1% as lower interest income on investment and
     liquidity pools held within card funding vehicles and lower ATM revenues
     were offset by higher publishing revenues, larger insurance premiums and
     greater merchant-related revenues.

o    MARKETING, PROMOTION, REWARDS AND CARDMEMBER SERVICES EXPENSES: Increased
     40% on increased rewards costs, reflecting strong volume growth, a higher
     redemption rate, and the increase in cardmember loyalty program
     participation, as well as our continued focus on business building
     activities.

o    CHARGE CARD INTEREST EXPENSE:  Declined 14% due to a lower effective cost
     of funds, partially offset by higher average receivables balances.

o    HUMAN RESOURCES EXPENSE: Increased 12% versus last year due to
     greater management incentive and employee benefit costs,
     merit increases and the Rosenbluth acquisition, which added 2,700
     employees in 4Q '03.
     - The employee count at 6/04 of 66,300 was up 3,000 versus 6/03 and up
       200 versus 3/04.

o    OTHER OPERATING EXPENSES: Increased 10% reflecting, in part, the impact
     of greater business and service volume-related costs, higher
     equipment-related technology costs, the Rosenbluth acquisition, and the
     impact of foreign currency translation. These increases were partially
     offset by reengineering initiatives and cost containment efforts.

                                      -8-
<PAGE>


                            AMERICAN EXPRESS COMPANY
                          SECOND QUARTER 2004 OVERVIEW
                        TRAVEL RELATED SERVICES (Cont'd)

o    CREDIT QUALITY:

     -   Overall credit quality improved during the quarter.

     -   The provision for losses on charge card products decreased 7%, despite
         higher volume, due to strong credit quality.

     -   The lending provision for losses was down 10% vs. last year, despite
         growth in loans outstanding, due to exceptionally well-controlled
         credit.

     -   Reserve coverage ratios, which are well in excess of 100% of past due
         balances, remained strong.

     -   WORLDWIDE CHARGE CARD: *
<TABLE>
<CAPTION>
         -- The net loss ratio and past due rate improved versus last quarter
            and last year.

                                                                         6/04               3/04            6/03
                                                                        ------             ------          ------
<S>                                                                    <C>                <C>             <C>
             Net loss ratio as a % of charge volume                      0.25%              0.26%           0.29%
             90 days past due as a % of receivables                      1.9%                2.0%            2.1%

         -- Reserve coverage of past due accounts remained strong, despite a
            decline in the reserve balance.
<CAPTION>

                                                                        06/04               3/04            6/03
                                                                        ------             ------          ------
<S>                                                                    <C>                <C>             <C>
             Reserves (MM)                                               $864               $896            $943
             % of receivables                                             3.0%               3.2%            3.6%
             % of 90-day past due accounts                                163%               164%            171%

     -   WORLDWIDE LENDING: **

         -- The write-off and past due rates improved versus last quarter and
            last year.
<CAPTION>

                                                                         6/04               3/04            6/03
                                                                        ------             ------          ------
<S>                                                                    <C>                <C>             <C>
             Net write-off rate                                          4.5%                4.6%            5.4%
             30 days past due as a % of loans                            2.5%                2.7%            2.8%

         -- Coverage of past due accounts was maintained at the high end of
            historical levels, despite the decline in the reserve balance.
<CAPTION>

                                                                         6/04               3/04            6/03
                                                                        ------             ------          ------
<S>                                                                    <C>                <C>             <C>
             Reserves (MM)                                               $1,535           $1,570          $1,594
             % of total loans                                             3.4%               3.5%            3.8%
             % of 30 day past due accounts                                136%               128%            137%
</TABLE>

*    There are no off-balance sheet Charge Card securitizations. Therefore,
     "Owned basis" and "Managed basis" credit quality statistics for the
     Charge Card portfolio are the same.

**   As previously described, this information is presented on a "Managed
     basis". "Owned basis" credit quality statistics are available in the
     Second Quarter 2004 Earnings Release on the TRS Selected Statistical
     Information pages. Credit trends are generally consistent under both
     reporting methods.

                                      -9-
<PAGE>
                      AMERICAN EXPRESS COMPANY
                    SECOND QUARTER 2004 OVERVIEW
                AMERICAN EXPRESS FINANCIAL ADVISORS
<TABLE>
<CAPTION>
(Preliminary)
                              STATEMENTS OF INCOME
                             (Unaudited, GAAP basis)

(millions)
                                                                         Quarters Ended            Percentage
                                                                            June 30,                Inc/(Dec)
                                                                       -------------------         -----------
                                                                       2004           2003
                                                                       ----           ----
<S>                                                                 <C>            <C>                <C>
Revenues:
     Management and distribution fees                                  $752           $571               32%
     Net investment income                                              603            571                6
     Other revenues                                                     408            354               16
                                                                      -----          -----
           Total revenues                                             1,763          1,496               18
                                                                      -----          -----
Expenses:
     Provision for losses and benefits:
        Annuities                                                       266            280               (5)
        Insurance                                                       218            187               16
        Investment certificates                                          48             59              (17)
                                                                      -----          -----
           Total                                                        532            526                1
                                                                      -----          -----
     Human resources                                                    646            508               27
     Other operating expenses                                           321            253               27
                                                                      -----          -----
           Total expenses                                             1,499          1,287               17
                                                                      -----          -----
Pre-tax income                                                          264            209               27
Income tax provision                                                     90             52               73
                                                                      -----          -----
Net income                                                             $174           $157               11
                                                                      =====          =====
</TABLE>

o    Net income rose 11%.
     -  2Q '04 includes:
        -- The impact of the 9/30/03 Threadneedle acquisition, which
           contributed approximately 8% to revenue growth and made a
           modest contribution to net income growth;
        -- Net pre-tax investment gains of $30MM versus net pre-tax
           investment losses of $16MM in 2Q '03;
        -- Higher expenses related to various industry regulatory
           and legal matters; and
        -- A $16MM tax expense primarily as a result of required
           amendments to prior-year tax returns.

o    Total revenues increased 18% due to:
     -  Increased management and distribution fees,
     -  Increased net investment income,
     -  Greater insurance premiums, and
     -  Higher financial planning and advice service fees.

o    The pre-tax margin was 15.0% in 2Q '04 versus 18.3% in 1Q '04 and 14.0%
     in 2Q '03.

o    The effective tax rate rose to 34% in 2Q '04 versus 28% in 1Q '04 and
     25% in 2Q '03, in light of the additional tax expense noted above.

o    SUPPLEMENTAL INFORMATION - NET REVENUES: In the following table, the
     Company presents AEFA's aggregate revenues on a basis that is net of
     provisions for losses and benefits because the Company manages the AEFA
     business and evaluates its financial performance, where appropriate, in
     terms of the "spread" on its products. An important part of AEFA's
     business is margin related, particularly the insurance, annuity and
     certificate businesses.

     One of the drivers for the AEFA business is the return on invested cash,
     primarily generated by sales of insurance, annuity and investment
     certificates, less provisions for losses and benefits on these products.
     These investments tend to be interest rate sensitive. Thus, GAAP revenues
     tend to be higher in periods of rising interest rates and lower in times
     of decreasing interest rates. The same relationship is true of provisions
     for losses and benefits, only it is more accentuated period-to-period
     because rates credited to customers' accounts generally reset at shorter
     intervals than the yield on underlying investments. The Company presents
     this portion of the AEFA business on a net basis to eliminate potentially
     less informative comparisons of period-to-period changes in revenue and
     provisions for losses and benefits in light of the impact of these
     changes in interest rates.

                                      -10-
<PAGE>
                      AMERICAN EXPRESS COMPANY
                    SECOND QUARTER 2004 OVERVIEW
            AMERICAN EXPRESS FINANCIAL ADVISORS (Cont'd)

<TABLE>
<CAPTION>
                                                                         Quarters ended                Percentage
     (millions)                                                             June 30,                    Inc/(Dec)
                                                                    -----------------------------     ---------------
                                                                      2004             2003
                                                                      ----             ----
<S>                                                                 <C>              <C>                 <C>
     Total GAAP Revenues                                            $1,763           $1,496              18%
     Less: Provision for losses and benefits:
                    Annuities                                          266              280
                    Insurance                                          218              187
                    Investment certificates                             48               59
                                                                    ------           ------
                         Total                                         532              526
                                                                    ------           ------
     Net Revenues                                                   $1,231           $  970              27
                                                                    ======           ======
</TABLE>

- -   Spreads within the annuity and insurance products were up versus
    last year and last quarter. Certificates spreads were down
    versus last year and flat versus last quarter.
- -   On a net revenue basis, the pre-tax margin was 21.4% in 2Q '04
    versus 25.8% in 1Q '04 and 21.5% in 2Q '03.

o    ASSETS OWNED, MANAGED AND ADMINISTERED:
<TABLE>
<CAPTION>
                                                                                                       Percentage
     (billions)                                                            June 30,                     Inc/(Dec)
                                                                    ----------------------           ---------------
                                                                    2004             2003
                                                                    ----             ----
<S>                                                               <C>              <C>                 <C>
     Assets owned (excluding separate accounts)                     $57.9            $52.2               11%
     Separate account assets                                         32.9             24.1               37
     Assets managed                                                 234.3            131.1               79
     Assets administered*                                            55.3             37.4               48
                                                                   ------           ------
            Total                                                  $380.4           $244.8               55
                                                                   ======           ======
</TABLE>

- -        Effective 9/30/03, the Company completed its acquisition of
         Threadneedle Asset Management. Consequently, Assets Owned, Separate
         Account Assets and Assets Managed include $1.0B, $2.6B, and $81.1B,
         respectively, of Threadneedle assets acquired on 9/30/03. Excluding
         these, assets owned rose 9%, separate account assets rose 26%, assets
         managed rose 17% and, in total, assets rose 21%.
- -        Upon adoption of FIN 46 at 12/31/03, $0.5B of additional assets from
         variable interest entities were consolidated. In addition, $3.8B of
         related assets within structured investments previously reported as
         Assets Managed for Institutions were excluded due to the
         consolidation of the related VIE structures.

     * Includes non-branded administered assets.  6/30/03 balance excluded $5.4B
       of such assets.

o    ASSET QUALITY:

     - Overall, credit quality continued to improve as default rates and
       leverage ratios have declined.
     - Non-performing assets relative to invested assets (excluding
       short-term cash positions and including the impact of FIN 46) were
       0.04% and were more than 6x covered by reserves, including those
       related to the impairment of securities.
     - High-yield investments (excluding unrealized appreciation/depreciation
       and the impact of FIN 46) totaled $3.0B, or 7% of the total investment
       portfolio at 6/04, compared with 7% at 3/04 and 6% at 6/03.
         --  Excluding unrealized appreciation/depreciation, but including
             the impact of FIN 46, high-yield investments totaled $3.2B, or
             8% of the total investment portfolio at 6/04, compared with
             $3.1B or 7% at 3/04.
     - The SFAS No. 115 related mark-to-market adjustment (including
       the impact of FIN 46 and reported in assets pre-tax) was
       appreciation of $0.05B at 6/04, $1.5B at 3/04 and $1.5B at 6/03.

                                      -11-
<PAGE>
                      AMERICAN EXPRESS COMPANY
                    SECOND QUARTER 2004 OVERVIEW
            AMERICAN EXPRESS FINANCIAL ADVISORS (Cont'd)

o    MANAGEMENT AND DISTRIBUTION FEES: The increase of 32% in 2Q '04 was due
     to a 42% increase in management fees and a 20% increase in distribution
     fees. The management fee increase resulted from higher average assets
     under management, reflecting the impact of Threadneedle, and improvement
     in equity market valuations versus last year and net asset inflows.
     Distribution fees increased on greater mutual fund fees and increased
     brokerage-related activities.

<TABLE>
<CAPTION>
     -  ASSETS MANAGED:
                                                                                                          Percentage
       (billions)                                                                June 30,                  Inc/(Dec)
                                                                       -------------------------------    ---------------
                                                                        2004             2003
                                                                        ----             ----
<S>                                                                 <C>            <C>                      <C>
       Assets managed for individuals                                 $108.8           $87.3                  25%
       Assets managed for institutions                                 125.5            43.8                   #
       Separate account assets                                          32.9            24.1                  37
                                                                      ------          ------
              Total                                                   $267.2          $155.2                  72
                                                                      ======          ======
</TABLE>

        # Denotes variance in excess of 100%.

         --   The increase in managed assets since 6/03 resulted primarily
              from the Threadneedle acquisition, which added $83.7B in assets
              effective 9/30/03, as well as market appreciation and foreign
              currency translation of $27.6B and net inflows of $4.5B. For the
              twelve months ended 6/04, net inflows at Threadneedle and within
              the retail channel were partially offset by institutional
              outflows, excluding Threadneedle.
              -   Flows for the year exclude the impact of the adoption of FIN
                  46 as of 12/31/03, which resulted in a $3.8B decrease in
                  Assets Managed for Institutions due to the consolidation of
                  the related VIE structures.
         --   The $2.1B increase in managed assets during 2Q '04 reflects
              market appreciation and foreign currency translation of $0.1B
              and net inflows of $2.0B, from net inflows within the retail
              channel and in the institutional business, due to Threadneedle
              and a $1.1B private placement offering of a structured
              investment managed by AEFA.

o      NET INVESTMENT INCOME:

       - Net investment income increased 6% versus last year. In 2Q '04,
         of investment gains were partially offset by $6MM of investment
         losses. The investment gains include an $18MM pre-tax benefit
         reflecting lower than expected losses related to management's 1Q '04
         decision to liquidate a secured loan trust. Results were also
         negatively impacted by the effect of lower appreciation this year
         versus last year in the S&P 500 on the value of options hedging
         outstanding stock market certificates and equity indexed annuities,
         which was offset in the related provisions. 2Q '03 included $16MM of
         net investment losses.
       - Average invested assets of $44.4B (including unrealized
         appreciation/depreciation and the impacts of FIN 46) rose 1% versus
         $44.1B in 2Q '03, reflecting the cumulative benefit of sales of the
         underlying fixed rate products over the past two years, offset by
         substantially lower unrealized appreciation versus last year.
       - The average yield on invested assets (excluding realized and
         unrealized appreciation/depreciation and including the impacts of FIN
         46) was 5.1% in both 2Q '04 and 2Q '03.


o      PRODUCT SALES:
       - Total gross cash sales from all products were up 16% versus 2Q '03.
         Branded advisor-generated sales increased 6% on a cash basis, and 10%
         on the internally used "gross dealer concession" basis, a commonly
         used financial services industry measure of the sales production of
         the advisor channel.
       - Total mutual fund cash sales increased 19% on strong advisor-related
         sales growth and the benefits of Threadneedle activities. Proprietary
         sales were flat, including the benefit of the Threadneedle
         acquisition, while non-proprietary sales increased substantially. A
         significant portion of non-proprietary sales continued to occur in
         "wrap" accounts (which are included in assets managed). Within
         proprietary funds:
           - Sales of equity funds increased, while bond and money market
             funds declined.
           - Redemption rates continued to compare favorably with
             industry levels.
       - Total annuity cash sales declined 26% due to a decline in
         both fixed and variable product sales.


                                      -12-
<PAGE>


                      AMERICAN EXPRESS COMPANY
                    SECOND QUARTER 2004 OVERVIEW
            AMERICAN EXPRESS FINANCIAL ADVISORS (Cont'd)

o    PRODUCT SALES (CONT'D):
       - Total cash sales of insurance products rose 17% reflecting higher
         property-casualty sales, in part due to sales through Costco, and
         higher sales of life insurance products.
       - Total certificate cash sales decreased 10% due to lower sales of
         certificates sold to clients outside the U.S. through the joint
         venture between AEFA and AEB and lower advisor sales levels.
       - Total institutional cash sales tripled reflecting the benefit of the
         Threadneedle activities and a $1.1B private placement offering of a
         structured investment managed by AEFA.
       - Total other cash sales decreased 27% due to lower contributions in
         the 401(k) business and lower limited partnership product sales.
       - Advisor product sales generated through financial planning and
         advice services were 75% of total sales in 2Q '04 and
         1Q '04, and 74% in 2Q '03.

o    OTHER REVENUES: Were up 16% on strong property-casualty and higher life
     insurance-related revenues.
       - Financial planning and advice services fees of $39MM increased 17%
         versus 2Q '03.

o    PROVISIONS FOR LOSSES AND BENEFITS: Annuity product provisions decreased
     5% due to lower crediting rates and the effect of lower appreciation in
     the S&P 500 on equity indexed annuities this year versus last year,
     partially offset by a higher average inforce level. Insurance provisions
     increased 16% as higher inforce levels were partially offset by lower
     life insurance crediting rates. Certificate provisions declined 17% as
     the effect on the stock market certificate product of lower appreciation
     in the S&P 500 this year versus last year and lower crediting rates were
     partially offset by higher average reserves.

o    HUMAN RESOURCES: Expenses increased 27% reflecting the effects of the
     Threadneedle acquisition and higher field force compensation-related
     costs. The average number of employees (excluding financial advisors and
     Threadneedle) was down 2%.
     - TOTAL ADVISOR FORCE:  11,943 at 6/04; up 276 advisors, or 2%,
       versus 6/03 and down 127 advisors versus 3/04.
         --   The decrease in advisors versus 3/04 resulted from a shift in
              focus toward tighter controls over new hires and appointments,
              as well as a process change that resulted in a longer time to
              appointment. This was partially offset by strong retention of
              first-year advisors.
         --   Veteran advisor retention rates remain strong.
         --   Total production and advisor productivity were up versus last
              year.
     -   The total number of clients increased 3%, client acquisitions fell
         8% and accounts per client were up 2%.  Client retention was 94%.

o    OTHER OPERATING EXPENSES: Increased 27% versus last year reflecting the
     effect of the Threadneedle acquisition and costs related to various
     industry regulatory and legal matters.


                                      -13-
<PAGE>
                      AMERICAN EXPRESS COMPANY
                    SECOND QUARTER 2004 OVERVIEW
                       AMERICAN EXPRESS BANK
<TABLE>
<CAPTION>
(Preliminary)
                        STATEMENTS OF INCOME
                            (Unaudited)

 (millions)                                                    Quarters Ended               Percentage
                                                                   June 30,                  Inc/(Dec)
                                                           -----------------------       ---------------
                                                           2004               2003
                                                           ----               ----
<S>                                                      <C>                <C>                  <C>
Net revenues:
    Interest income                                        $131               $148                 (12)%
    Interest expense                                         51                 57                 (11)
                                                           ----               ----
       Net interest income                                   80                 91                 (12)
    Commissions and fees                                     70                 57                  24
    Foreign exchange income and other revenues               53                 52                   2
                                                           ----               ----
       Total net revenues                                   203                200                   2
                                                           ----               ----
Expenses:
    Human resources                                          71                 64                  11
    Other operating expenses                                 78                 70                  12
    Provision for losses                                     12                 27                 (57)
                                                           ----               ----
       Total expenses                                       161                161                   -
                                                           ----               ----
Pre-tax income                                               42                 39                   9
Income tax provision                                         14                 12                  22
                                                           ----               ----
Net income                                                  $28                $27                   4
                                                           ====               ====
</TABLE>

o    Net income increased 4% as slightly higher net revenues and a
     significantly lower provision for losses were partially offset by higher
     human resources and operating expenses.

o    Net revenues rose 2%.
     - Commissions and fees increased 24% due to higher volumes in the Financial
       Institutions Group (FIG) and Private Banking.
     - Net interest income decreased 12% due to lower levels of Personal
       Financial Services (PFS) loans, reflecting AEB's prior decision to
       temporarily curtail loan origination in Hong Kong and a decline in
       the Corporate Banking loan portfolio.
     - Foreign exchange income and other revenues increased 2% due to higher
       PFS and Private Banking client activity, partially offset by lower
       FIG revenue primarily due to losses on FIG seed capital investments
       in mutual funds in 2Q '04 versus gains last year.

o    Human resources expenses were up 11% reflecting higher management incentive
     costs.

o    Other operating expenses increased 12% reflecting higher technology
     charges.

o    The provision for losses decreased 57% due to lower PFS loan volumes and
     an improvement in bankruptcy related write-offs in the consumer lending
     portfolio in Hong Kong.

o    The pre-tax margin was 20.7% in 2Q '04 versus 22.9% in 1Q '04 and 19.5%
     in 2Q '03.

o    The effective tax rate was 33% in 2Q '04 versus 38% in 1Q '04 and 31%
     in 2Q '03.

AEB remained "well-capitalized".
<TABLE>
<CAPTION>

                                6/04          3/04           6/03          Well-Capitalized
                                -----         -----          -----         ----------------
<S>                             <C>           <C>            <C>              <C>
     Tier 1                     12.0%         11.7%          10.5%            6.0%
     Total                      11.8%         11.5%          10.7%           10.0%
     Leverage Ratio              5.9%          5.7%           5.5%            5.0%
</TABLE>

                                      -14-
<PAGE>
                      AMERICAN EXPRESS COMPANY
                    SECOND QUARTER 2004 OVERVIEW
                   AMERICAN EXPRESS BANK (Cont'd)

o    EXPOSURES
     - AEB's loans outstanding were $6.5B at 6/04 versus $6.4B at 3/04 and
       $5.8B at 6/03.
        --   During 4Q '03, approximately $100MM of loans previously
             classified as "Other" were reclassified to the consumer category.
             These loans represent non-PFS consumer loans that are an ongoing
             part of AEB's consumer business. The statistics below conform to
             the current period presentation.
        --   Activity since 6/03 included a $400MM net increase in consumer
             and Private Banking loans, consisting of a $600MM increase in
             Private Banking loans and a $200MM decline in PFS and other
             loans, a $350MM increase in financial institution loans and a
             $100MM decrease in corporate banking loans. Activity since 3/04
             included a $200MM increase in financial institution loans, while
             consumer and Private Banking loans decreased $100MM and corporate
             loans were flat.
        --   Consumer and Private Banking loans comprised 68% of total loans
             at 6/04 versus 70% at 3/04 and 66% at 6/03; financial institution
             loans comprised 30% of total loans at 6/04, compared with 28% at
             3/04 and 6/03; and corporate banking loans comprised 2% of total
             loans at 6/04 and at 3/04 versus 6% at 6/03.

     - In addition to the loan portfolio, there are other banking
       activities, such as forward contracts, various credit-related
       commitments and market placements, which added approximately $7.7B to
       the credit exposures at 6/04 versus $7.4B at 3/04 and $7.8B at 6/03.
       Of the $7.7B of additional exposures at 6/04, $5.7B were relatively
       less risky cash and securities related balances.

o    ASSETS MANAGED
     - For the twelve months ended 6/04, growth in Private Banking client
       holdings of 10%, PFS client holdings of 3% and FIG managed assets of
       50% reflected net asset inflows, market appreciation and a positive
       foreign currency translation impact.
     - During 2Q '04, Private Banking client holdings were essentially flat,
       while PFS client holdings and FIG managed assets declined reflecting
       net asset outflows and market depreciation, partially offset by a
       positive foreign currency translation impact.

o    LOANS
     - Total non-performing loans* were $50MM at 6/04, compared to $69MM at
       3/04 and $102MM at 6/03 as AEB continues to wind down its Corporate
       Banking business. The decreases reflect loan payments and write-offs,
       partially offset by net downgrades.

     - Other non-performing assets were $2MM at 6/04 versus $10MM at 3/04
       and $16MM at 6/03.

     - AEB's total credit loss reserve at 6/04 was $105MM compared with
       $113MM at 3/04 and $151MM at 6/03, and was allocated as follows:

<TABLE>
<CAPTION>
         (millions)                                            6/04          3/04         6/03
                                                               ----          ----         ----
<S>                                                            <C>           <C>          <C>
         Loans                                                 $103          $106         $142
         Other assets, primarily matured foreign
             exchange and other derivative contracts              1             6            5
         Other credit-related commitments                         1             1            4
                                                               ----          ----         ----
         Total                                                 $105          $113         $151
                                                               ====          ====         ====
</TABLE>

       --  Loan loss reserve coverage of non-performing loans* was 205% at
           6/04, 154% at 3/04 and 139% at 6/03.

     - Management formally reviews the loan portfolio and evaluates credit
       risk throughout the year. This evaluation takes into consideration
       the financial condition of the borrowers, fair market value of
       collateral, status of delinquencies, historical loss experience,
       industry trends and the impact of current economic conditions. As of
       June 30, 2004, management considers the credit loss reserve to be
       appropriate.

       * AEB defines a non-performing loan as any loan (other than certain
         smaller-balance consumer loans) on which the accrual of interest is
         discontinued because the contractual payment of principal or
         interest has become 90 days past due or if, in management's
         opinion, the borrower is unlikely to meet its contractual
         obligations.

         For smaller-balance consumer loans related to the Personal
         Financial Services business, management establishes reserves it
         believes to be adequate to absorb credit losses in the portfolio.
         Generally, these loans are written off in full when an impairment
         is determined or when the loan becomes 120 or 180 days past due,
         depending on loan type. For this portfolio, 30-day past due rates
         were 5.5% at 6/04, 3/04 and 6/03.

                                      -15-
<PAGE>
              INFORMATION RELATING TO FORWARD LOOKING STATEMENTS

THIS SUPPLEMENT INCLUDES FORWARD-LOOKING STATEMENTS, WHICH ARE SUBJECT TO
RISKS AND UNCERTAINTIES. THE WORDS "BELIEVE," "EXPECT," "ANTICIPATE,"
"OPTIMISTIC," "INTEND," "PLAN," "AIM," "WILL," "MAY," "SHOULD," "COULD,"
"WOULD," "LIKELY," AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY
FORWARD-LOOKING STATEMENTS. READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE
ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH
THEY ARE MADE. THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE OR REVISE ANY
FORWARD-LOOKING STATEMENTS. FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER
MATERIALLY FROM THESE FORWARD-LOOKING STATEMENTS INCLUDE, BUT ARE NOT LIMITED
TO: THE COMPANY'S ABILITY TO SUCCESSFULLY IMPLEMENT A BUSINESS MODEL THAT
ALLOWS FOR SIGNIFICANT EARNINGS GROWTH BASED ON REVENUE GROWTH THAT IS LOWER
THAN HISTORICAL LEVELS, INCLUDING THE ABILITY TO IMPROVE ITS OPERATING EXPENSE
TO REVENUE RATIO BOTH IN THE SHORT-TERM AND OVER TIME, WHICH WILL DEPEND IN
PART ON THE EFFECTIVENESS OF REENGINEERING AND OTHER COST-CONTROL INITIATIVES,
AS WELL AS FACTORS IMPACTING THE COMPANY'S REVENUES; THE COMPANY'S ABILITY TO
COST EFFECTIVELY MANAGE AND EXPAND CARDMEMBER BENEFITS, INCLUDING CONTAINING
THE GROWTH OF ITS MARKETING, PROMOTION, REWARDS AND CARDMEMBER SERVICES
EXPENSES; THE COMPANY'S ABILITY TO ACCURATELY ESTIMATE THE PROVISION FOR THE
COST OF THE MEMBERSHIP REWARDS PROGRAM; THE COMPANY'S ABILITY TO GROW ITS
BUSINESS AND MEET OR EXCEED ITS RETURN ON SHAREHOLDERS' EQUITY TARGET BY
REINVESTING APPROXIMATELY 35% OF ANNUALLY-GENERATED CAPITAL, AND RETURNING
APPROXIMATELY 65% OF SUCH CAPITAL TO SHAREHOLDERS, OVER TIME, WHICH WILL
DEPEND ON THE COMPANY'S ABILITY TO MANAGE ITS CAPITAL NEEDS AND THE EFFECT OF
BUSINESS MIX, ACQUISITIONS AND RATING AGENCY REQUIREMENTS; THE ABILITY OF THE
COMPANY TO GENERATE SUFFICIENT REVENUES FOR EXPANDED INVESTMENT SPENDING AND
TO ACTUALLY SPEND SUCH FUNDS TO THE EXTENT AVAILABLE, AND THE ABILITY TO
CAPITALIZE ON SUCH INVESTMENTS TO IMPROVE BUSINESS METRICS; CREDIT RISK
RELATED TO CONSUMER DEBT, BUSINESS LOANS, MERCHANT BANKRUPTCIES AND OTHER
CREDIT EXPOSURES BOTH IN THE U.S. AND INTERNATIONALLY; VOLATILITY IN THE
VALUATION ASSUMPTIONS FOR THE INTEREST-ONLY (I/O) STRIP RELATING TO TRS'
LENDING SECURITIZATIONS; FLUCTUATION IN THE EQUITY AND FIXED INCOME MARKETS,
WHICH CAN AFFECT THE AMOUNT AND TYPES OF INVESTMENT PRODUCTS SOLD BY AEFA, THE
MARKET VALUE OF ITS MANAGED ASSETS, AND MANAGEMENT, DISTRIBUTION AND OTHER
FEES RECEIVED BASED ON THE VALUE OF THOSE ASSETS; AEFA'S ABILITY TO RECOVER
DEFERRED ACQUISITION COSTS (DAC), AS WELL AS THE TIMING OF SUCH DAC
AMORTIZATION, IN CONNECTION WITH THE SALE OF ANNUITY, INSURANCE AND CERTAIN
MUTUAL FUND PRODUCTS; CHANGES IN ASSUMPTIONS RELATING TO DAC, WHICH COULD
IMPACT THE AMOUNT OF DAC AMORTIZATION; THE ABILITY TO IMPROVE INVESTMENT
PERFORMANCE IN AEFA'S BUSINESSES, INCLUDING ATTRACTING AND RETAINING
HIGH-QUALITY PERSONNEL; THE SUCCESS, TIMELINESS AND FINANCIAL IMPACT,
INCLUDING COSTS, COST SAVINGS AND OTHER BENEFITS INCLUDING INCREASED REVENUES,
OF REENGINEERING INITIATIVES BEING IMPLEMENTED OR CONSIDERED BY THE COMPANY,
INCLUDING COST MANAGEMENT, STRUCTURAL AND STRATEGIC MEASURES SUCH AS VENDOR,
PROCESS, FACILITIES AND OPERATIONS CONSOLIDATION, OUTSOURCING (INCLUDING,
AMONG OTHERS, TECHNOLOGIES OPERATIONS), RELOCATING CERTAIN FUNCTIONS TO
LOWER-COST OVERSEAS LOCATIONS, MOVING INTERNAL AND EXTERNAL FUNCTIONS TO THE
INTERNET TO SAVE COSTS, AND PLANNED STAFF REDUCTIONS RELATING TO CERTAIN OF
SUCH REENGINEERING ACTIONS; THE ABILITY TO CONTROL AND MANAGE OPERATING,
INFRASTRUCTURE, ADVERTISING AND PROMOTION AND OTHER EXPENSES AS BUSINESS
EXPANDS OR CHANGES, INCLUDING BALANCING THE NEED FOR LONGER-TERM INVESTMENT
SPENDING; THE POTENTIAL NEGATIVE EFFECT ON THE COMPANY'S BUSINESSES AND
INFRASTRUCTURE, INCLUDING INFORMATION TECHNOLOGY, OF TERRORIST ATTACKS,
DISASTERS OR OTHER CATASTROPHIC EVENTS IN THE FUTURE; THE IMPACT ON THE
COMPANY'S BUSINESSES RESULTING FROM CONTINUING GEOPOLITICAL UNCERTAINTY; THE
OVERALL LEVEL OF CONSUMER CONFIDENCE; CONSUMER AND BUSINESS SPENDING ON THE
COMPANY'S TRAVEL RELATED SERVICES PRODUCTS, PARTICULARLY CREDIT AND CHARGE
CARDS AND GROWTH IN CARD LENDING BALANCES, WHICH DEPEND IN PART ON THE ABILITY
TO ISSUE NEW AND ENHANCED CARD PRODUCTS AND INCREASE REVENUES FROM SUCH
PRODUCTS, ATTRACT NEW CARDHOLDERS, CAPTURE A GREATER SHARE OF EXISTING
CARDHOLDERS' SPENDING, SUSTAIN PREMIUM DISCOUNT RATES ON ITS CARD PRODUCTS IN
LIGHT OF MARKET PRESSURES, INCREASE MERCHANT COVERAGE, RETAIN CARDMEMBERS
AFTER LOW INTRODUCTORY LENDING RATES HAVE EXPIRED, AND EXPAND THE GLOBAL
NETWORK SERVICES BUSINESS; THE TRIGGERING OF OBLIGATIONS TO MAKE PAYMENTS TO
CERTAIN CO-BRAND PARTNERS, MERCHANTS, VENDORS AND CUSTOMERS UNDER CONTRACTUAL
ARRANGEMENTS WITH SUCH PARTIES UNDER CERTAIN CIRCUMSTANCES; AEFA'S ABILITY TO
EFFECTIVELY MANAGE THE ECONOMICS IN SELLING A GROWING VOLUME OF
NON-PROPRIETARY MUTUAL FUNDS AND OTHER RETAIL FINANCIAL PRODUCTS TO CLIENTS;
SUCCESSFULLY CROSS-SELLING FINANCIAL, TRAVEL, CARD AND OTHER PRODUCTS AND
SERVICES TO THE COMPANY'S CUSTOMER BASE, BOTH IN THE UNITED STATES AND
INTERNATIONALLY; A DOWNTURN IN THE COMPANY'S BUSINESSES AND/OR NEGATIVE
CHANGES IN THE COMPANY'S AND ITS SUBSIDIARIES' CREDIT RATINGS, WHICH COULD
RESULT IN CONTINGENT PAYMENTS UNDER CONTRACTS, DECREASED LIQUIDITY AND HIGHER
BORROWING COSTS; FLUCTUATIONS IN INTEREST RATES, WHICH IMPACT THE COMPANY'S
BORROWING COSTS, RETURN ON LENDING PRODUCTS AND SPREADS IN THE INVESTMENT AND
INSURANCE BUSINESSES; CREDIT TRENDS AND THE RATE OF BANKRUPTCIES, WHICH CAN
AFFECT SPENDING ON CARD PRODUCTS, DEBT PAYMENTS BY INDIVIDUAL AND CORPORATE
CUSTOMERS AND BUSINESSES THAT ACCEPT THE COMPANY'S CARD PRODUCTS AND RETURNS
ON THE COMPANY'S INVESTMENT PORTFOLIOS; BANKRUPTCIES, RESTRUCTURINGS OR
SIMILAR EVENTS AFFECTING THE AIRLINE OR ANY OTHER INDUSTRY REPRESENTING A
SIGNIFICANT PORTION OF TRS'S BILLED BUSINESS, INCLUDING ANY POTENTIAL NEGATIVE
EFFECT ON PARTICULAR CARD PRODUCTS AND SERVICES AND BILLED BUSINESS GENERALLY
THAT COULD RESULT FROM THE ACTUAL OR PERCEIVED WEAKNESS OF KEY BUSINESS
PARTNERS IN SUCH INDUSTRIES; FLUCTUATIONS IN FOREIGN CURRENCY EXCHANGE RATES;
POLITICAL OR ECONOMIC INSTABILITY IN CERTAIN REGIONS OR COUNTRIES, WHICH COULD
AFFECT LENDING AND OTHER COMMERCIAL ACTIVITIES, AMONG OTHER BUSINESSES, OR
RESTRICTIONS ON CONVERTIBILITY OF CERTAIN CURRENCIES; CHANGES IN LAWS OR
GOVERNMENT REGULATIONS; THE COSTS AND INTEGRATION OF ACQUISITIONS; AND
OUTCOMES AND COSTS ASSOCIATED WITH LITIGATION AND COMPLIANCE AND REGULATORY
MATTERS. A FURTHER DESCRIPTION OF THESE AND OTHER RISKS AND UNCERTAINTIES CAN
BE FOUND IN THE COMPANY'S ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED
DECEMBER 31, 2003, AND ITS OTHER REPORTS FILED WITH THE SEC.


                                     -16-

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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