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<SEC-DOCUMENT>0001193125-08-042043.txt : 20080228
<SEC-HEADER>0001193125-08-042043.hdr.sgml : 20080228
<ACCEPTANCE-DATETIME>20080228172114
ACCESSION NUMBER:		0001193125-08-042043
CONFORMED SUBMISSION TYPE:	10-K
PUBLIC DOCUMENT COUNT:		13
CONFORMED PERIOD OF REPORT:	20071231
FILED AS OF DATE:		20080228
DATE AS OF CHANGE:		20080228

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:		10-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-07657
		FILM NUMBER:		08651848

	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>10-K
<SEQUENCE>1
<FILENAME>d10k.htm
<DESCRIPTION>FORM 10-K
<TEXT>
<HTML><HEAD>
<TITLE>Form 10-K</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="line-height:0px;margin-top:0px;margin-bottom:0px;border-bottom:0.5pt solid #000000">&nbsp;</P> <P
STYLE="line-height:3px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000">&nbsp;</P> <P STYLE="margin-top:3px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"><B>UNITED STATES </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"><B>SECURITIES AND EXCHANGE COMMISSION </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman"
SIZE="3"><B>Washington, D.C. 20549 </B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"><B>FORM 10-K </B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P
STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B><FONT FACE="WINGDINGS">&#120;</FONT><B></B></B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>For the fiscal year ended December&nbsp;31, 2007 </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>OR </B></FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B><FONT FACE="WINGDINGS">&#168;</FONT><B></B></B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>For the transition period from <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>to
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </B></FONT></P> <P STYLE="margin-top:8px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman"
SIZE="2"><B>Commission File No.&nbsp;1-7657 </B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P
STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="6"><B>American Express Company </B>
</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Exact name of registrant as specified in its charter) </B></FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="50%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="48%"></TD></TR>
<TR>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>New York</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>13-4922250</B></FONT></TD></TR>
<TR>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(State or other jurisdiction of<BR>incorporation or organization)</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(I.R.S. Employer</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="1"><B>Identification No.)</B></FONT></P></TD></TR>
</TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="50%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="48%"></TD></TR>
<TR>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>World Financial Center</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>200 Vesey Street</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>New York, New York</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>10285</B></FONT></TD></TR>
<TR>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Address of principal executive offices)</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Zip Code)</B></FONT></TD></TR>
</TABLE> <P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Registrant&#146;s telephone number, including area code: (212)&nbsp;640-2000 </B></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Securities registered pursuant to Section&nbsp;12(b) of the Act: </B></FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="50%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="48%"></TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <P STYLE="border-bottom:1px solid #000000;width:60pt" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Title of each class</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Name of each exchange</B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000;width:79pt" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>on which registered</B></FONT></P></TD></TR>
<TR>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-left:1.00em; text-indent:-1.00em" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Common Shares (par value $0.20 per Share)</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>New York Stock Exchange</B></FONT></TD></TR>
</TABLE> <P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Securities registered pursuant to Section&nbsp;12(g) of the Act: None</B> </FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:3%"><FONT FACE="Times New Roman" SIZE="2">Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act.&nbsp;&nbsp;&nbsp;&nbsp;Yes<I>&nbsp;&nbsp;<FONT FACE="WINGDINGS">&#120;</FONT><I></I></I>&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;<FONT FACE="WINGDINGS">&#168;</FONT> </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:3%"><FONT
FACE="Times New Roman" SIZE="2">Indicate by check mark if the registrant is not required to file reports pursuant to Section&nbsp;13 or Section&nbsp;15(d) of the Act.&nbsp;&nbsp;&nbsp;&nbsp;Yes &nbsp;&nbsp;<FONT
FACE="WINGDINGS">&#168;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;No<I></I>&nbsp;&nbsp;<FONT FACE="WINGDINGS">&#120;</FONT> </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:3%"><FONT FACE="Times New Roman" SIZE="2">Indicate by check mark
whether the registrant (1)&nbsp;has filed all reports required to be filed by Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such
reports) and (2)&nbsp;has been subject to such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;Yes<I>&nbsp;&nbsp;<FONT FACE="WINGDINGS">&#120;</FONT><I></I>&nbsp;&nbsp;&nbsp;&nbsp;</I>No&nbsp;&nbsp;<FONT
FACE="WINGDINGS">&#168;</FONT></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:3%"><FONT FACE="Times New Roman" SIZE="2">Indicate by check mark if disclosure of delinquent filers pursuant to Item&nbsp;405 of Regulation S-K is not
contained herein, and will not be contained, to the best of registrant&#146;s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form
10-K.<I></I>&nbsp;&nbsp;<FONT FACE="WINGDINGS">&#120;</FONT> </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:3%"><FONT FACE="Times New Roman" SIZE="2">Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of &#147;large accelerated filer,&#148; &#147;accelerated filer&#148; and &#147;smaller reporting company&#148; in Rule 12b-2 of the Exchange Act. (Check
one): </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="73%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="26%"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Large accelerated filer&nbsp;&nbsp;<FONT FACE="WINGDINGS">&#120;</FONT></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Accelerated filer&nbsp;&nbsp;<FONT FACE="WINGDINGS">&#168;</FONT></FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Non-accelerated filer&nbsp;&nbsp;<FONT FACE="WINGDINGS">&#168;</FONT> (Do not check if a smaller reporting company)</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Smaller reporting company&nbsp;&nbsp;<FONT FACE="WINGDINGS">&#168;</FONT></FONT></TD></TR>
</TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:3%"><FONT FACE="Times New Roman" SIZE="2">Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Act).&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;&nbsp;&nbsp;<FONT FACE="WINGDINGS">&#168;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;<FONT FACE="WINGDINGS">&#120;</FONT> </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:3%"><FONT
FACE="Times New Roman" SIZE="2">As of June&nbsp;29, 2007, the aggregate market value of the registrant&#146;s voting shares held by non-affiliates of the registrant was approximately $72.2 billion based on the closing sale price as reported on the
New York Stock Exchange. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:3%"><FONT FACE="Times New Roman" SIZE="2">As of February&nbsp;20, 2008, there were 1,156,087,817 common shares of the registrant outstanding. </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Documents Incorporated By Reference </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:3%"><FONT FACE="Times New Roman"
SIZE="2">Parts I, II and IV: Portions of Registrant&#146;s 2007 Annual Report to Shareholders. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:3%"><FONT FACE="Times New Roman" SIZE="2">Part III: Portions of Registrant&#146;s
Proxy Statement to be filed with the Securities and Exchange Commission in connection with the Annual Meeting of Shareholders to be held on April&nbsp;28, 2008. </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P
STYLE="line-height:0px;margin-top:0px;margin-bottom:0px;border-bottom:0.5pt solid #000000">&nbsp;</P> <P STYLE="line-height:3px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000">&nbsp;</P>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>TABLE OF CONTENTS </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2"><B>Form 10-K </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Item Number </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="92%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_37">PART I </A></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">1.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_1">Business</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_2">Introduction</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_3">Global Network &amp; Merchant Services</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_4">U.S. Card Services</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">15</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_5">International Card Services</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">23</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_6">Global Commercial Services</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">24</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_7">Corporate &amp; Other</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">28</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_8">Foreign Operations</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">33</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_9">Segment Information and Classes of Similar Services</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">35</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_10">Executive Officers of the Company</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">36</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_11">Employees</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">37</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">1A.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_12">Risk Factors</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">37</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">1B.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_13">Unresolved Staff Comments</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">45</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">2.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_14">Properties</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">45</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">3.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_15">Legal Proceedings</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">46</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">4.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_16">Submission of Matters to a Vote of Security Holders</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">53</FONT></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_17">PART II</A></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">5.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_18">Market for Company&#146;s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">54</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">6.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_19">Selected Financial Data</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">55</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">7.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_20">Management&#146;s Discussion and Analysis of Financial Condition and Results of Operation</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">55</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">7A.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_21">Quantitative and Qualitative Disclosures about Market Risk</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">55</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">8.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_22">Financial Statements and Supplementary Data</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">55</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">9.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_23">Changes in and Disagreements with Accountants on Accounting and Financial Disclosure</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">55</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">9A.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_24">Controls and Procedures</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">55</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">9B.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_25">Other Information</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">56</FONT></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_26">PART III</A></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_27">Directors, Executive Officers and Corporate Governance</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">57</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">11.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_28">Executive Compensation</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">57</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">12.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_29">Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">57</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">13.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_30">Certain Relationships and Related Transactions, and Director Independence</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">57</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">14.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_31">Principal Accounting Fees and Services</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">57</FONT></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_32">PART IV</A></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">15.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_33">Exhibits and Financial Statement Schedules</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">58</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_34">Signatures</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">59</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_35">Index to Financial Statements Covered by Reports of Independent Registered Public Accounting Firm</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">F-1</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#toc66665_36">Exhibit Index</A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">E-1</FONT></TD></TR>
</TABLE>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_37"></A>PART I* </B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="9%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>ITEM&nbsp;1.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_1"></A>BUSINESS </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_2"></A>INTRODUCTION </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Overview </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">American Express Company, together with its consolidated subsidiaries (&#147;American Express,&#148; the &#147;Company,&#148; &#147;we,&#148; &#147;us&#148; or &#147;our&#148;), is a leading global payments and travel
company. Our principal products and services are charge and credit payment card products and travel-related services offered to consumers and businesses around the world. We were founded in 1850 as a joint stock association. We were incorporated in
1965 as a New York corporation. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Our headquarters are located in New York, New York in lower Manhattan. We also have offices in other
locations in North America, as well as throughout the world. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">During 2007, we realigned our reportable operating segments to reflect the
reorganization of our businesses into two customer-focused groups&#151;the Global Consumer Group and the Global Business-to-Business Group. Accordingly, U.S. Card Services and International Card Services are aligned within the Global Consumer Group
and Global Commercial Services and Global Network&nbsp;&amp; Merchant Services are aligned within the Global Business-to-Business Group. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Securities
Exchange Act Reports and Additional Information </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We maintain an Investor Relations Web site on the Internet at
http://ir.americanexpress.com. We make available free of charge, on or through this Web site, our annual, quarterly and current reports and any amendments to those reports as soon as reasonably practicable following the time they are electronically
filed with or furnished to the Securities and Exchange Commission (&#147;SEC&#148;). To access these, just click on the &#147;SEC Filings&#148; link under the caption &#147;Financial Information&nbsp;&amp; Filings&#148; found on our Investor
Relations homepage. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">You can also access our Investor Relations Web site through our main Web site at www.americanexpress.com by clicking
on the &#147;About American Express&#148; link, which is located at the bottom of our homepage. Information contained on our Investor Relations Web site and our main Web site is not incorporated by reference into this report or any other report
filed with or furnished to the SEC. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>2007 Highlights </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">Compared with 2006, we delivered: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">revenues net of interest expense of $27.7 billion, up 10% from $25.2 billion; </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">income from continuing operations of $4.0 billion, up 12% from $3.6 billion; </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">net income of $4.0 billion up 8% from $3.7 billion; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">diluted earnings per share based on income from continuing operations of $3.39, up 16% from $2.92; </FONT></P></TD></TR></TABLE> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="line-height:8px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">*</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Some of the statements in this report constitute forward-looking statements. You can identify forward-looking statements by words such as &#147;believe,&#148; &#147;expect,&#148;
&#147;anticipate,&#148; &#147;optimistic,&#148; &#147;intend,&#148; &#147;plan,&#148; &#147;aim,&#148; &#147;will,&#148; &#147;may,&#148; &#147;should,&#148; &#147;could,&#148; &#147;would,&#148; &#147;likely,&#148; &#147;estimate,&#148;
&#147;predict,&#148; &#147;potential,&#148; &#147;continue&#148; or other similar expressions. We discuss certain factors that affect our business and operations and that may cause our actual results to differ materially from these forward-looking
statements under &#147;Item 1A. Risk Factors&#148; below. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or
revise any forward-looking statements. </FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">1 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">


<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">diluted earnings per share based on net income of $3.36, up 12% from $2.99; and </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">return on average equity of 37%, compared with 35%. </FONT></P></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">This strong performance was tempered by events at the end of the year, when the Company began to feel the effects of the weakening U.S. economy as cardmember spending slowed and past-due and write-off rates in U.S.
Card Services increased. These trends led us to increase credit-related reserves in the fourth quarter and to adopt a more cautious view for 2008. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">For a complete discussion of our 2007 financial results, including financial information regarding each of our reportable operating segments, see pages 26 -113 of our 2007 Annual Report to Shareholders, which are incorporated herein by
reference. For a summary of the Company and our reportable operating segments, and a discussion of our principal sources of revenue, see pages 26-29 and pages 72-75, respectively, of the 2007 Annual Report to Shareholders. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">On September&nbsp;18, 2007, we entered into an agreement to sell our international banking subsidiary, American Express Bank Ltd. (&#147;AEBL&#148;) and
American Express International Deposit Company (&#147;AEIDC&#148;), a subsidiary that issues investment certificates to AEBL&#146;s customers, to Standard Chartered PLC for the approximate value of $1.1 billion, subject to certain regulatory
approvals. This transaction is described in more detail below and on pages 27-28 under the caption &#147;Financial Review&#148; and Note 2 to our Consolidated Financial Statements on page 80 of our 2007 Annual Report to Shareholders, which
descriptions are incorporated herein by reference. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">On November&nbsp;7, 2007, we announced that we had entered into an agreement with Visa,
Inc., Visa USA, and Visa International (collectively &#147;Visa&#148;) to remove Visa and certain of its member banks as defendants in the Company&#146;s lawsuit against MasterCard International, Inc. (&#147;MasterCard&#148;), Visa and their member
banks. The lawsuit alleges MasterCard, Visa and their member banks illegally blocked the Company from the bank-issued card business in the United States. The agreement has been approved by Visa USA&#146;s member banks. For additional information
about this settlement agreement please see &#147;Corporate Matters&#148; within &#147;Legal Proceedings&#148; below. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Products and Services
</B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Company&#146;s Global Consumer Group and Global Business-to-Business Group provide a variety of products and services worldwide.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Global Consumer Group offers a range of products and services including: </FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">charge and lending (i.e., credit) card products for consumers and small businesses worldwide; </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">consumer travel services; and </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">stored value products such as Travelers Cheques and prepaid products. </FONT></P></TD></TR></TABLE> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Business-to-Business Group provides, among other products and services: </FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">business travel, corporate cards and other expense management products and services; </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">network services and merchant acquisition and merchant processing for the Company&#146;s network partners and proprietary payments businesses; and
</FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">point-of-sale, back-office, and marketing products and services for merchants. </FONT></P></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">In certain countries we have granted licenses to partially-owned affiliates and unaffiliated entities to offer some of these products and services. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Company&#146;s various products and services are sold globally to diverse customer groups, including
consumers, small businesses, middle-market companies, large corporations, and banking and financial institutions. These products and services are sold through various channels including direct mail, the Internet, employee and independent third party
sales forces and direct response advertising. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">Our general purpose card network,
card issuing and merchant acquiring and processing businesses are global in scope. We are a world leader in providing charge and credit cards to consumers, small businesses and corporations. These cards include cards issued by American Express as
well as cards issued by third-party banks and other institutions that are accepted on the American Express network (collectively, &#147;Cards&#148;). Our Cards permit Cardmembers to charge purchases of goods and services in most countries around the
world at the millions of merchants that accept cards bearing our logo. We added a net total of 8.4&nbsp;million Cards in 2007, bringing total worldwide Cards-in-force to 86.4&nbsp;million (including Cards issued by third parties). In 2007, our
worldwide billed business (spending on American Express<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Cards, including Cards issued by third parties) was $647.3 billion. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">Our business as a whole has not experienced significant seasonal fluctuations, although travel
sales tend to be highest in the second and fourth quarters; Travelers Cheque sales and Travelers Cheques outstanding tend to be greatest each year in the summer months, peaking in the third quarter; American Express<FONT FACE="Times New Roman"
SIZE="1"><SUP>&reg;</SUP></FONT> Gift Card sales are highest in the months of November and December; and Card billed business tends to be moderately higher in the fourth quarter than in other quarters. </FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Spend-Centric Model is Competitive Advantage </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We
believe that our &#147;spend-centric&#148; business model (which focuses on generating revenues primarily by driving spending on our Cards and secondarily by finance charges and fees) has significant competitive advantages. Average spending per
Card, which is substantially higher for us versus our competitors, represents greater value to merchants in the form of loyal customers and higher sales. This enables us to earn a premium discount rate and thereby invest in greater value-added
services for merchants and Cardmembers. As a result of the higher revenues generated from higher spending, we have the flexibility to offer more attractive rewards, other incentives to Cardmembers and targeted marketing programs for merchants, which
in turn create an incentive for Cardmembers to spend more on their Cards. This business model, along with our closed loop network, in which we are both the card issuer and, in most instances, the merchant acquirer, gives us a competitive advantage
that we seek to leverage to provide more value to Cardmembers, merchants and Card issuing partners. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>The American Express Brand </B></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Our brand and its attributes&#151;trust, security, integrity, quality and customer service&#151;are key assets of the Company. We continue to focus on our
brand by educating employees about these attributes and by incorporating them into our programs, products and services. Our brand has been rated one of the most valuable brands in the world in published studies, and we believe it provides us with a
significant competitive advantage. We believe our brand and its attributes are critical to our success, and we invest heavily in managing, marketing and promoting it. (Marketing, promotion, rewards and cardmember services expenses are reflected in
each segment based on actual expenses incurred, with the exception of brand advertising, which is reflected in the Global Network &amp; Merchant Services segment.) In addition, we place significant importance on trademarks, service marks and
patents, and diligently protect our intellectual property rights around the world. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_3"></A>GLOBAL NETWORK&nbsp;&amp; MERCHANT SERVICES </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Global Network&nbsp;&amp; Merchant Services
(&#147;GNMS&#148;) segment operates a global general-purpose charge and credit card network, which includes both proprietary Cards and Cards issued under network partnership agreements. It also manages merchant services globally, which includes
signing merchants to accept Cards as well as processing and settling card transactions for those merchants. This segment also offers merchants point-of-sale and back-office products, services, and marketing programs. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Cards bearing our logo are issued by our principal operating subsidiary, American Express Travel Related
Services Company, Inc. (&#147;TRS&#148;), and certain of its subsidiaries, and also by third-party institutions, and are accepted on our global card network at all merchant locations worldwide that accept American Express-branded Cards. In addition,
depending on the product, Cards bearing our logo are generally accepted at ATM locations worldwide that accept Cards. TRS and its subsidiaries issue the vast majority of Cards on our network. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Our Global Network Services (&#147;GNS&#148;) business establishes and maintains relationships with banks and other institutions around the world who
issue Cards and, in certain countries, acquire local merchants on the American Express network. GNS is a critical asset in broadening the Cardmember and merchant base for our network worldwide. Our Global Merchant Services (&#147;GMS&#148;) business
provides us with access to rich transaction data through our closed loop network, which encompasses relationships with both the Cardmember and the merchant. This capability enables us to acquire new merchants, deepen relationships with existing
merchant customers, process transactions, and provide targeted marketing and other value-added services to merchants in our network. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">A key
asset of our network is the American Express brand, which is one of the world&#146;s most highly recognized and respected. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Global Network Services </B>
</FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We have been pursuing since May 1996 a strategy, through our GNS business, of inviting U.S. banks and other institutions to issue Cards on
the American Express network, building on a business strategy we had implemented successfully in a number of countries outside the United States, where we have many banks and other financial institutions issuing Cards on the American Express
network. By leveraging our global infrastructure and the appeal of the American Express brand, we aim to broaden our Cardmember and merchant base for our network worldwide. Our GNS business has established more than 117 card issuing and/or merchant
acquiring arrangements with banks and other institutions in 125 countries. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In 2007, GNS signed 12 new partners to issue Cards on the
American Express network. Additionally, GNS partners launched over 140 new products during 2007, bringing the total number of American Express-branded GNS partner products to approximately 680. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">GNS focuses on partnering with qualified third-party banks and other financial institutions that
choose to issue Cards accepted on our global network. Although we customize our network arrangements to the particular market and our partner&#146;s requirements, as well as to our strategic plans in that marketplace, all GNS arrangements are
designed to help issuers develop products for their highest-spending and most affluent customers and to support the value of American Express<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Card acceptance to merchants. We choose to
partner with institutions who share a core set of attributes such as commitment to high quality standards, strong marketing expertise and compatibility with the American Express brand, and we require adherence to our product, brand and service
standards.* </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">With approximately 680 different Card products launched on our network
so far by our bank partners, GNS is an increasingly important business that is strengthening our brand visibility around the world, driving more transaction volume onto our merchant network and increasing the number of merchants accepting the
American Express<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Card. GNS enables us to expand our global presence without having to invest large amounts of resources, as our GNS partners already have established attractive customer
bases they can target with American Express-branded products. Since 1999, Cards-in-force issued by GNS partners have grown at a compound annual growth rate of 28%, and totaled 20&nbsp;million Cards at the end of 2007. Outside the United States, 66%
of new Cards issued in 2007 were Cards issued by one of our GNS partners. Spending on these GNS Cards has grown at a compound annual rate of 27% since 1999. Year over year spending growth in 2007 was 49%, with total spending equal to $53 billion.
</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="line-height:8px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000;width:10%">&nbsp;</P>
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<TR>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">*</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">The use of the term &#147;partner&#148; or &#147;partnering&#148; does not mean or imply a formal legal partnership. </FONT></TD></TR></TABLE> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>GNS Arrangements </I></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">Although the structures and details for each of the GNS arrangements vary, all of them generate revenues for us from the Card transaction volumes they drive on the American Express network. Gross revenues we receive
per dollar spent on a Card issued by a GNS partner are lower than those from our proprietary Card issuing business. However, because the GNS partner is responsible for most of the operating costs and risk of its Card issuing business, our operating
expenses and credit losses are lower than those in our proprietary Card issuing business. The GNS business model generates an attractive earnings stream and risk profile that requires a lower level of capital support. The return on equity in our GNS
business can thus be significantly higher than that of our proprietary Card issuing business. Because the majority of GNS costs are fixed, the GNS business is highly scalable. GNS partners benefit from their association with the American Express
brand and their ability to gain attractive revenue streams and expand and differentiate their product offerings with innovative marketing programs. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">Our GNS arrangements fall into the following three main categories: Independent Operator Arrangements, Network Card License Agreements and Joint Venture Arrangements. </FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><I>Independent Operator Arrangements </I></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">The first type of GNS arrangement is known as an independent operator (&#147;IO&#148;) arrangement.
As of the end of 2007, we had 59 of these arrangements around the world. We pursue these arrangements to expand the presence of the American Express network throughout the world, in markets in which we do not offer a proprietary local currency Card.
Under this type of arrangement, the partner&#146;s local presence and relationships help us enhance the impact of our brand in the market, reach merchant coverage goals more quickly, and operate at economic scale and cost levels that would be
difficult for us to achieve on our own. Subject to meeting our standards, we license our IO bank partners to issue local currency Cards in their markets, including the classic Green, Gold and Platinum American Express<FONT FACE="Times New Roman"
SIZE="1"><SUP>&reg;</SUP></FONT> Cards. In addition, the majority of these partners serve as the merchant acquirer and processor for local merchants. American Express retains the relationship with multi-national merchants. Our IO partners own the
customer relationships and credit risk for the Cards they issue, and make the decisions about which customers will be issued Cards. GNS generates revenues in IO arrangements from Card licensing fees, royalties on Cardmember billings, foreign
exchange conversion revenue, royalties on merchant acquisition volume, discount revenue and, in some partnerships, royalties on net spread revenue. Our IO partners are responsible for transaction authorization, billing and pricing, Cardmember and
merchant servicing and funding Card receivables for their Cards and payables for their merchants. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We bear the risk arising from the IO
partner&#146;s potential failure to meet its settlement obligations to us. We mitigate this risk by partnering with independent operators that we believe are financially sound and will meet their obligations, and by monitoring their financial
health, their compliance with the terms of their relationship with us and the political, economic and regulatory environment in which they operate. In addition, we generally require IO partners to post a letter of credit, bank guarantee or other
collateral to reduce this risk. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Examples of countries where we have entered into IO arrangements include Brazil, Russia, China, Ecuador,
Greece, South Korea, Pakistan, Croatia, Peru, Portugal and Vietnam. In 2007, we sold our local proprietary Card issuing business in the Philippines and our local merchant acquiring business in Russia. Through our IO partnerships, we believe we can
accelerate growth in Cardmember spending, Cards-in-force and merchant acceptance in these countries. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><I>Network Card License
Arrangements</I> </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The second type of GNS arrangement is known as a network card license (&#147;NCL&#148;). At the end of 2007, we had 54 of
these arrangements in place. We pursue these arrangements to increase our brand presence and gain market share in markets in which we have a proprietary Card issuing business, and in a few cases those in which we also have IO partners. In an NCL
arrangement, we grant the third-party financial institution a license to issue </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px">
<FONT FACE="Times New Roman" SIZE="2">American Express-branded Cards. The NCL issuer owns the customer relationships for all Cards it issues, provides customer service to its Cardmembers,
transaction authorization, billing and credit management, is responsible for the marketing of the Cards, and designs the Card product features (including rewards and other incentives for Cardmembers), subject to meeting certain standards. We operate
the merchant network, route and process Card transactions from the merchant&#146;s point-of-sale through submission to the issuer, and settle with issuers. The NCL is the type of arrangement that we have implemented with banks in the United States.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">GNS&#146; revenues in NCL arrangements are driven by a variety of factors, including the level of Cardmember spending, royalties, currency
conversions and licensing fees paid by the partner and fees charged to the Card issuer based on charge volume, and our provision of value-added services such as Cardmember insurance products and other Card features and benefits for the issuer&#146;s
Cards. As indicated above, the NCL issuer bears the credit risk for the issued Cards, as well as the Card marketing and acquisition costs, Cardmember fraud risks and costs of rewards and other loyalty initiatives. We bear the risk arising from the
NCL partner&#146;s potential failure to meet its settlement obligations to us. We mitigate this risk by partnering with issuers that we believe are financially sound and will meet their obligations, and by monitoring their financial health, their
compliance with the terms of their relationship with us and the political, economic and regulatory environment in which they operate. In addition, we generally require NCL issuers to post a letter of credit, bank guarantee or other collateral to
reduce this risk. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Examples of NCL arrangements include our relationships with Citibank (South Dakota), N.A. and Bank of America in the
United States, Lloyds TSB Bank in the United Kingdom and Westpac Banking Corporation in Australia. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><I>Joint Venture Arrangements</I>
</FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The third type of GNS arrangement is a joint venture (&#147;JV&#148;).<B> </B>We have utilized this type of arrangement in Switzerland,
Belgium and several other countries. In these markets, TRS joins with a third party to establish a separate business in which TRS has a significant ownership stake. The JV typically signs new merchants to the American Express network and issues
local currency Cards that carry our logo. In a JV arrangement, the JV assumes the Cardmember credit risk and bears the operating and marketing costs. Unlike the other two types of GNS arrangements, we share management, risk, and profit and loss
responsibility with our JV partners. Income is generated by discount revenues, card fees and net spread revenues. The economics of the JV are similar to our proprietary Card issuing business, which we discuss below under &#147;U.S. Card
Services,&#148; and we receive a portion of the JV&#146;s income depending on the level of our ownership interest. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>GNS Business Highlights</I>
</FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Outside the United States, in 2007, we signed a number of agreements to enhance our presence in markets such as China, Japan, and Brazil,
and further expanded our global presence into new markets. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Some of the highlights of our GNS business outside the United States in 2007
include the: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Launch of the Airmiles Duo product in the United Kingdom with Lloyds TSB; </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Introduction of the ICBC Staples Corporate American Express Card, the first American Express branded co-brand corporate card in China, and the ICBC Hainan Airlines
American Express Card, the first American Express branded airline co-brand card in China with our partner the Industrial and Commercial Bank of China Limited (ICBC); </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Entry into a new card issuing partnership with China CITIC Bank and the launch of the first product under this partnership; </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Signing of an agreement with Banco Itau, one of the leading banks in Brazil, to issue and market cards on the American Express network;
</FONT></P></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">6 </FONT></P>


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<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Entry into a new card issuing partnership with GE Consumer Finance in Japan (a Japanese subsidiary of GE Money, a unit of General Electric Company), and the launch
of the first products under this partnership; and </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Launch of the SunMiles American Express Cards, a portfolio of four new airline co-brand cards with Cyprus Airways issued by the Bank of Cyprus.
</FONT></P></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In contrast to the situation outside the United States, where banks and other qualified institutions have issued Cards
on our network for many years, until 2004 no major U.S. banks had issued Cards in the United States on the American Express global network. This situation was the result of rules and policies of Visa U.S.A. and Visa International Service Association
(together, &#147;Visa&#148;) and MasterCard Incorporated and MasterCard International, Inc. (together, &#147;MasterCard&#148;) in the United States, which mandated expulsion of members that issued American Express-branded Cards. No bank was willing
to risk forfeiting membership in Visa and/or MasterCard (collectively, the &#147;bankcard associations&#148;) to issue cards on our network. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">However, as a consequence of the decision in a lawsuit filed in October 1998 by the U.S. Department of Justice against Visa and MasterCard in which such rules and policies were found to violate the U.S. antitrust laws, these rules and
policies were finally repealed in late 2004. The Supreme Court&#146;s decision not to hear Visa&#146;s and MasterCard&#146;s appeal of the lower courts&#146; rulings against them cleared the way for implementation of the trial court&#146;s order
requiring the repeal of the illegal rules and policies. We view this decision as a major victory for U.S. consumers as well as U.S. banks because it opened the door to more vigorous network competition and more innovative card products and services.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">For American Express, the conclusion of the litigation brought by the Justice Department meant that we were able to extend our network to
other card issuers in the United States, just as we have done internationally. Building a network business in the United States that operates alongside our proprietary Card business provides us with new and substantial opportunities for growth. We
have acted on this development by entering into several GNS arrangements with financial institutions in the United States, which have all launched products in the marketplace. These companies include MBNA (which subsequently merged with Bank of
America), Bank of America, Citibank (South Dakota), N.A., HSBC Bank Nevada N.A., Barclays, USAA Federal Savings Bank and GE Money Bank. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">Some of the highlights of our GNS business in the United States in 2007 include the: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; padding-bottom:3px; margin-top:-2px" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"> <P STYLE="line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></P></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE="line-height:95%; vertical-align:top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Launch of the Bank of America Accolades<FONT FACE="Times New Roman" SIZE="1"><SUP>&#153;</SUP></FONT> American Express
Card, the first premium credit card designed exclusively for Bank of America&#146;s affluent, wealthy and ultra-wealthy clients served through Premier Banking&nbsp;&amp; Investments&#153;, The Private Bank of Bank of America, and its extension,
Family Wealth Advisors; and </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Launch of the ultra-premium Citi Chairman American Express Card. </FONT></P></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">In November 2004, we filed a lawsuit against Visa, MasterCard and certain of their member banks seeking monetary damages resulting from the illegal rules that were struck down in the U.S. Department of Justice lawsuit
discussed above. On November&nbsp;7, 2007, we announced that we had entered into an agreement with Visa to remove Visa and certain of its member banks as defendants in the lawsuit. Under terms of the settlement agreement reached with Visa, we will
receive an aggregate maximum payment of up to $2.25 billion. MasterCard remains the sole defendant in the American Express case. (You can read more about this lawsuit and the Visa settlement in the &#147;Legal Proceedings&#148; section of this
report below.) </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Global Merchant Services </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">We operate a GMS business, which includes signing merchants to accept Cards, accepting and processing Card transactions, and paying merchants that accept Cards for purchases made by Cardmembers with Cards (&#147;Charges&#148;). We also
provide point-of-sale and back-office products and services and marketing programs to merchants, leveraging the capabilities provided by our closed loop structure. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Our objective is for Cardmembers to be able to use the Card wherever and however they desire, as well as
to increase merchant coverage in key geographic areas and in selected new industries that have not traditionally accepted general purpose credit and charge cards as a means of payment. We add new merchants to our network through a number of sales
channels: a proprietary sales force, third-party sales agents, strategic alliances with banks and processors, the Internet, telemarketing and inbound &#147;Want to Honor&#148; calls (i.e., merchants desiring to accept the Card contacting us
directly). As discussed in the &#147;Global Network Services&#148; section, our IO partners and joint ventures add new local merchants to the American Express network outside the United States. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">Since the early 1990s, we have significantly expanded the number of merchants that accept our Card
products as well as the kinds of businesses that accept the Card. In recent years, we have focused our efforts on increasing the use of our Cards for everyday spending. In 1990, 64% of our U.S. billings came from the travel and entertainment sectors
and 36% came from retail and other sectors. That proportion has now been more than reversed. In 2007, U.S. non-travel and entertainment billings represented over 69% of the U.S. billed business on American Express<FONT FACE="Times New Roman"
SIZE="1"><SUP>&reg;</SUP></FONT> Cards. This shift resulted from the growth, over time, in the types of merchants that began to accept charge and credit cards in response to consumers&#146; increased desire to use these cards for more of their
purchases, and our focus on expanding Card acceptance to meet Cardmembers&#146; needs. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">During 2007, we continued our efforts to encourage
consumers to use the Card for everyday spending. We increased the number and types of merchants in retail and everyday spending categories that accept the Card, such as quick-serve restaurants, mass transit, healthcare and recurring billing
merchants. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In addition, we also continued our drive to bring Card acceptance to industries where cash or checks are the predominant form
of payment, including payments for residential rent, residence/destination clubs and private jet travel. In addition, we have made headway in promoting Card acceptance for Business-to-Business payments in industries such as pharmaceuticals,
wholesale foods and consumer packaged goods. As we penetrate these industries, there is the potential to increase our average Cardmember spending. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">Globally, acceptance of general purpose charge and credit cards continues to increase, including
among merchants in industries that have not traditionally accepted charge and credit cards. As in prior years, during 2007, we continued to grow merchant acceptance of Cards around the world and to refine our approach to calculating merchant
coverage in accordance with changes in the marketplace. Management estimates that, as of the end of 2007, our merchant network in the United States accommodated more than 90% of our Cardmembers&#146; general purpose charge and credit card spending,
and our international merchant network as a whole accommodated approximately 80% of our Cardmembers&#146; general purpose charge and credit card spending. These percentages are based on comparing our Cardmembers&#146; spending on our network
currently with our estimate of what our Cardmembers would spend on our network if all merchants that accept general purpose credit and charge cards accepted American Express<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Cards.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We earn &#147;discount&#148; revenue from fees charged to merchants for accepting Cards as payment for goods or services sold. The
merchant discount is the fee charged to the merchant for accepting Cards and is generally expressed as a percentage of the amount charged on a Card. The merchant discount is generally deducted from the amount of the payment that the &#147;merchant
acquirer&#148; (in most cases, TRS or one of its subsidiaries) pays to a merchant for Charges submitted. A merchant acquirer is the entity that contracts for Card acceptance with the merchant, accepts transactions from the merchant, pays the
merchant for these transactions and submits the transactions to the American Express network, which submits the transactions to the appropriate Card issuer. When a Cardmember presents the Card for payment, the merchant creates a record of charge for
the transaction and submits it to the merchant acquirer for payment. To the extent that TRS or one of its subsidiaries is the merchant acquirer, the merchant discount is recorded by us as discount revenue at the time the transaction is received by
us from the merchant. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Where we act as the merchant acquirer and the Card presented at a merchant is issued by a third-party bank&nbsp;or
financial institution, such as in the case of our GNS partners, we will make financial settlement to the </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<FONT FACE="Times New Roman" SIZE="2">merchant and receive the discount revenue. In our role as the operator of the Card network, we will also receive financial settlement from the Card issuer,
who receives an issuer rate (i.e., the individually negotiated amount that Card issuers receive for transactions charged on our network with Cards that they issue, which is usually expressed as a percentage of the charged amount). The difference
between the discount revenue (received by us in the form of the merchant discount) and the issuer rate received by the Card issuer generates a return to us. Where we are the Card issuer and the merchant acquirer is a third-party bank or financial
institution (which can be the case in a country in which the IO is the local merchant acquirer), we receive an individually negotiated issuer rate in our settlement with the merchant acquirer, which is recorded by us as discount revenue. By contrast
with networks such as Visa and MasterCard, there is no collectively-set interchange rate on the American Express network. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The following
diagrams depict the relationships among the parties in a point-of-sale transaction effected on the American Express network where we act as both the Card issuer and merchant acquirer (the &#147;3-Party Model&#148;) and under an NCL arrangement where
third-party financial institutions act as Card issuers (the &#147;NCL Model&#148;): </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center">

<IMG SRC="g66665g16d58.jpg" ALT="LOGO"> </P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center">

<IMG SRC="g66665g49m08.jpg" ALT="LOGO"> </P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The merchant discount rate that we charge is principally determined by the value we deliver to the merchant and
generally represents a premium over other networks. We deliver greater value to the merchant through higher spending Cardmembers relative to cards issued on competing card networks, the overall higher volume of spending by all Cardmembers, marketing
expertise, and Cardmembers&#146; insistence on using their Cards when enrolled in rewards or other Card loyalty programs, including Cardmembers who are part of our Corporate Card program. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The merchant discount rate varies, among other factors, with the industry in which the merchant does business, the Charge volume, the timing and method
of payment to the merchant, the method of submission of Charges and, in certain instances, the geographic scope of the Card acceptance agreement signed with us (local or global) and the Charge amount. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In 2007, as in prior years, we experienced some reduction in our global weighted average merchant
discount rate, principally reflecting the net impact of selective repricing initiatives, changes in the mix of business, regional market pressures and volume-related pricing adjustments. We expect that the effect of these factors will likely
continue to result in some erosion over time of the weighted average merchant discount rate, particularly outside the United States. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">While most merchants understand our merchant discount rate pricing in relation to the value
provided, we do encounter a relatively small number of merchants that accept our Cards, but tell their customers that they prefer to accept another type of payment and, consequently, suppress use of the Card. We respond to this issue aggressively to
ensure that our Cardmembers are able to use their Card where and when they want to and to protect the American Express brand. We have made progress by: concentrating on acquiring merchants where Cardmembers want to use the Card; continuing to
enhance the value we provide by programs such as My WishList and American Express Selects<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT>, which enable merchants to gain valuable exposure and additional sales by providing exclusive
offers and experiences to American Express Cardmembers; providing better and earlier communication of our value proposition; and, when necessary, cancelling merchants who suppress the use of our Card products. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">In the case of My WishList, a popular seasonal limited e-tail Web site we developed in the U.S. in
conjunction with merchant partners, we provide Cardmembers with opportunities to buy a limited number of sought-after items, such as automobiles, trips, electronics and jewelry, and attractive travel and lifestyle experiences, at a significant
discount from their retail prices, as well as access to numerous offers from top brands. My WishList brings attention to the merchant partners and allows them to reach out to our Cardmembers. Through American Express Selects<FONT
FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT>, we make available to our Cardmembers high quality shopping, dining and travel values from merchants all over the world, and these merchants have an opportunity to reach out to our Cardmembers.
American Express Selects<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> is a global platform available to American Express Cardmembers and merchants. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">Merchant satisfaction is a key goal of our Global Merchant Services business. We focus on understanding and addressing factors that influence merchant satisfaction, including developing and executing innovative
programs that increase Card usage at merchants, using technology resources, enhancing operational efficiencies and merchants&#146; ease of doing business with us, applying our closed loop capabilities and deep marketing expertise, and strengthening
our relationships with merchants through an expanding roster of services that help them meet their business goals. In 2007 and early 2008 we announced the signing of agreements with First Data Merchant Services Corporation, NOVA Information Systems,
and Heartland Payment Systems allowing them to offer Card acceptance as part of an integrated solution for small- and medium-sized merchants. Under these arrangements, First Data Merchant Services Corporation, NOVA Information Systems, and Heartland
Payment Systems will provide payment processing services to merchants on our behalf for Card transactions, while we will retain the acceptance contract with participating merchants, establish merchant pricing, and receive the same transactional
information we always have received. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">We also offer our merchant customers a full
range of point-of-sale solutions, including integrated point-of-sale terminals and direct links that allow merchants to accept American Express<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Cards, as well as bankcards, debit cards and
checks, and contactless point-of-sale terminals that enable merchants to accept contactless payment products including our ExpressPay from American Express<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> products. Virtually all
proprietary point-of-sale solutions support direct processing (i.e., direct connectivity) to American Express, which can lower a merchant&#146;s cost of Card acceptance and enhance payment efficiency. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">ExpressPay from American Express<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT>, a
contactless payment feature, is designed to be a fast, easy-to-use alternative for making everyday purchases at merchants where speed and convenience is important. ExpressPay is now accepted at over 30,000 locations in the United States, including
top quick-service restaurant, movie theater, drug store and convenience store chains. ExpressPay, powered by radio-frequency technology, is currently available in a key-fob form and has also been introduced within several Card products. In 2007, we
</FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<FONT FACE="Times New Roman" SIZE="2">expanded merchant coverage of ExpressPay from American Express<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> through the entry into an
agreement with Tully&#146;s Coffee Corporation, a leading specialty coffee retailer with stores in Washington, California, Idaho and Arizona, and the expansion of merchant acceptance through Office Depot&#146;s 1,200 nationwide locations.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We continue to focus our efforts on the recurring billing industry through Automatic Bill Payment, a service that allows merchants to bill
Cardmembers on a regular basis for recurring charges such as insurance premiums, newspaper subscriptions, health club memberships, commutation costs and cable television service. We have also made modifications to our host authorization system to
approve more transactions and reduce Cardmember inconvenience at the point-of-sale without a corresponding increase in fraud or credit losses. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">Wherever we manage both the acquiring relationship with merchants and the Card issuing side of the business, there is a &#147;closed loop,&#148; which distinguishes our network from the bankcard networks in that we have access to
information at both ends of the Card transaction. We maintain a direct relationship with both our Cardmembers and our merchants, and we handle all key aspects of those relationships. Our relationships allow us to analyze information on
Cardmembers&#146; spend. This enables us to provide targeted marketing for merchants and special offers to Cardmembers through a variety of channels, subject to compliance with our privacy policy and legal requirements. We protect the
confidentiality of this data, and comply with strict privacy, firewall and applicable legal requirements. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We work closely with our Card
issuing and merchant acquiring bank partners to maintain key elements of this closed loop, which permits them to customize marketing efforts, deliver greater value to their Cardmembers and help us to direct increased business to merchants who accept
the Card. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">As the merchant acquirer, we have certain exposures that arise if a billing dispute between a Cardmember and a merchant is
settled in favor of the Cardmember. Drivers of this liability are returns in the normal course of business, disputes over fraudulent charges, the quality or non-delivery of goods and services and billing errors. Typically, we offset the amount due
to the Cardmember against payments for the merchant&#146;s current or future Charge submissions. We can realize losses when a merchant&#146;s offsetting charge submissions cease, such as when the merchant commences a bankruptcy proceeding or goes
out of business. We actively monitor our merchant base to assess the risk of this exposure. When appropriate, we will take action to reduce the net exposure to a given merchant by requiring a parent company guarantee or letter of credit, holding
cash reserves funded through Charge payable holdbacks from a merchant, lengthening the time between when the merchant submits a Charge for payment and when we pay the merchant or implementing other appropriate risk management tools. We also
establish reserves on our balance sheet for these contingencies. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">With the increase in electronic transmission of credit card transaction
data over merchants&#146; point-of-sale systems, the necessity for merchants and merchant processors to secure this data against accidental or intentional compromise using a standard protocol that applies to all card types, became clear to American
Express and the other major card networks. In 2006, in order to strengthen the security practices of merchants and payment processing firms and to secure payment account data in a globally consistent manner, we and Discover Financial Services, JCB,
MasterCard Worldwide and Visa formed PCI Security Standards Council, LLC (&#147;PCI SSC&#148;), an independent standards-setting organization to manage the ongoing evolution of the Payment Card Industry (PCI) Data Security Standard, which focuses on
improving payment card account security throughout the transaction process. By establishing PCI SSC to manage the PCI Data Security Standard, we and the other founders have developed a common standard that is more accessible and efficient for
participants in the payment card industry. All our merchants and service providers that store, process and transmit payment card data are required to comply with the PCI Data Security Standard. PCI SSC is dedicated to driving greater education,
awareness and adoption of the PCI Data Security Standard to ensure that all stakeholders involved in the payment process conduct their business responsibly. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">In some markets outside the United States, particularly in Asia, third-party processors and some bankcard acquirers have begun to offer merchants the capability of converting credit card transactions from the local
</FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<FONT FACE="Times New Roman" SIZE="2">currency to the currency of the cardholder&#146;s residence (i.e., the cardholder&#146;s billing currency) at the point-of-sale, and submitting the
transaction in the cardholder&#146;s billing currency, thus bypassing the traditional foreign currency conversion process of the card network. This practice is known as &#147;dynamic currency conversion.&#148; If a merchant utilizes a dynamic
currency conversion process, the merchant and processor share any fee assessed or spread earned for converting the transaction at the point of sale, thus reducing or eliminating revenue for card issuers and card networks relating to the conversion
of foreign charges to the cardholder&#146;s billing currency. This practice is not widespread, and it is uncertain to what extent consumers will prefer to have foreign currency transactions converted by merchants in this way. Our policy generally
requires merchants to submit Charges and be paid in the currency of the country in which the transaction occurs, and we convert the transaction to the Cardmember&#146;s billing currency. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2"><I>GNMS&#151;Competition</I> </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Our global card network, including our Global Merchant Services and Global
Network Services businesses, competes with other charge and credit card networks, including, among others, Visa, MasterCard, Diners Club (which, in the United States and Canada, has been folded into the network operated by MasterCard), Discover
(primarily in the United States), and JCB Co., Ltd. (primarily in Asia). We are the third largest general purpose charge and credit card network based on charge volume, behind Visa and MasterCard, which are larger than we are in most markets. In
addition, apart from such network services, a range of companies globally, including merchant acquirers and processors, carry out some activities similar to certain activities performed by our Global Merchant Services and Global Network Services
businesses. No single entity participates on a global basis in the full range of activities that are encompassed by our closed loop business model. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">The principal competitive factors that affect the network and merchant service business include: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the number of Cards-in-force and amount of spending on these Cards; </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the quantity and quality of the establishments where the Cards can be used; </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the economic attractiveness to card issuers and merchant acquirers of participating in the network; </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the success of marketing and promotional campaigns; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">reputation and brand recognition; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">innovation in systems, technology and product offerings; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the quality of customer service; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the security of Cardmember and merchant information; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the impact of existing litigations, legislation and government regulation; and </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">cost of Card acceptance relative to the value provided. </FONT></P></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">Another aspect of network competition is the recent emergence and rapid growth of alternative payment mechanisms and systems, which include aggregators (such as PayPal), wireless payment technologies (including using
mobile telephone networks to carry out transactions), pre-paid systems and systems linked to credit cards, and bank transfer models. In the United States, alternative payment vehicles continue to emerge that seek to re-direct online customers to
payment systems based on ACH (automated clearing house, i.e., inter-bank transfer), and existing debit networks are making efforts to develop online PIN functionality, which could potentially reduce the relative use of charge and credit cards
online. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Some of our competitors have attempted to replicate our closed loop structure, such as Visa&#146;s Visa Incentive Network.
Although it remains to be seen how effective Visa will be, efforts by Visa and other card networks and payment providers to replicate the closed loop speak both to its continued value as well as the intense competitive environment in which we
operate. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">12 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>GNMS&#151;Regulation</I> </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">Local regulations governing the issuance of charge and credit cards have not been a significant factor impacting our Global Network Services&#146; arrangements with banks and qualifying financial institutions, because
such banks and institutions generally are already authorized to issue general purpose cards and, in the case of our IO arrangements, to operate merchant acquiring businesses. Accordingly, our GNS partners have generally not had difficulty in
obtaining appropriate government authorization in the markets in which we have chosen to enter into GNS arrangements. As a network service provider to regulated U.S. banks, our GNS business is subject to review by certain federal bank regulators,
including the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency and the Office of Thrift Supervision. As the operator of a general purpose card network, we are also subject to the USA PATRIOT Act of 2001 (the
&#147;Patriot Act&#148;), which requires us to conduct due diligence on our GNS partners to ensure that they maintain sufficient anti-money laundering and &#147;know your customer&#148; programs to prevent our network from being used for money
laundering or terrorist financing. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In recent years, regulators in several countries outside the United States have focused on the fees
involved in the operation of card networks, including the fees merchants are charged to accept cards. Regulators in the United Kingdom, Poland, Germany, Spain, Hungary, the European Union (EU), Australia, Mexico, and Switzerland, among others, have
conducted investigations into the way bankcard network members collectively set the &#147;interchange,&#148; which is the fee paid by the bankcard merchant acquirer to the card issuing bank in &#147;four-party&#148; payment networks, like Visa and
MasterCard. The interchange fee is generally the largest component of the merchant service charge charged to merchants for bankcard debit and credit charges in these systems<B>. </B>By contrast, the American Express network does not have
collectively-set interchange fees.<B> </B>Although the regulators&#146; focus has primarily been on Visa and MasterCard as the dominant card networks and their operations on a multilateral basis, antitrust actions and government regulation of the
bankcard associations&#146; pricing could ultimately affect all networks. Lower interchange and/or merchant discount revenue may lead card issuers to look for other sources of revenue such as higher annual card fees, interest charges, as well as to
reduce costs by scaling back or eliminating rewards programs. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In certain countries where antitrust actions or regulations have led our
competitors to lower their fees, we have made adjustments to our pricing to merchants to reflect local competitive trends. For example, reductions in bankcard interchange mandated by the Reserve Bank of Australia reforms in 2003 have resulted in
lower merchant discount rates for Visa and MasterCard acceptance. As a result of changes in the marketplace, we have reduced our own merchant discount rates in Australia although we have been able to increase billed business and the number of
merchants accepting our Cards. In addition, under legislation enacted in Argentina, a merchant acquirer is required to charge the same merchant discount rate to all merchants in the same industry category, and merchant discount rates for credit
cards cannot exceed 3%. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In Europe, interchange is usually handled as a matter for the domestic competition law authority, as well as the
European Commission. In its Final Report on the retail banking sector issued in January 2007, which included a review of the payment cards industry, including interchange fees, the European Commission appeared to favor competition law enforcement
tools, rather than regulation of price levels, to address perceived issues of insufficient competition. The conclusions of the European Commission in its Final Report do not have the force of law, but may be used as the basis for future regulation
or antitrust enforcement action in the EU Member States. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In December 2007, the European Commission ruled that MasterCard&#146;s
multilateral interchange fees (MIF) for cross-border payment card transactions violate EC Treaty rules on restrictive business practices. MasterCard has indicated it will comply, although it is also lodging an appeal against the Commission&#146;s
findings. The ruling does not prevent MasterCard and its member banks from adopting an alternative MIF arrangement that can be proven to comply with EU Competition rules. However, based upon the information available to American Express, the
Commission does not appear to have set out any particular methodology for how MIF should be calculated in a way that would comply with the rules. The Commission&#146;s decision applies to cross-border consumer credit, charge and debit card
transactions within the EU and to domestic transactions to which </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">13 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px">
<FONT FACE="Times New Roman" SIZE="2">MasterCard has chosen to apply the cross-border MIF. Although the Commission&#146;s investigation included commercial cards, the decision does not apply to
commercial cards. The Commission is likely to produce another decision regarding MIF for commercial card transactions. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In 2002, the
Commission granted an exemption to Visa regarding its MIFs. This exemption expired on December&nbsp;31, 2007. The Commission has indicated that the MasterCard decision should &#147;provide Visa with guidance for the way ahead,&#148; although it
stated that &#147;every MIF must be examined on its own merits.&#148; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">These developments may impact how the competition authorities in the
Member States of the EU view domestic interchange. Earlier in 2007, for example, the competition regulator in Poland found insufficient basis for Visa and MasterCard interchange fees and ordered the associations and their members to stop their
current interchange setting practices with immediate effect. The banks are appealing that decision. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Regulators, including most recently
the European Commission, have considered the industry practice of prohibiting merchants from passing the cost of merchant discount fees along to consumers through surcharges on </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">card purchases. Although some countries, such as the United Kingdom, have for a number of years permitted merchants to levy a surcharge on credit card purchases, there has to date been a relatively low overall
incidence of surcharging, as merchants do not want to risk offending customers or losing them to competitors that do not assess surcharges for credit card purchases. In its Final Report, the European Commission indicated that prohibiting surcharging
appeared to restrict inter-network competition and may constitute a barrier to entry for alternative, non-cash payment instruments. In Australia, we have seen selective, but increasing merchant surcharging on our Cards in certain industries and, in
some cases, on a basis that is greater than that applied to cards issued on the bankcard networks. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The European Union has adopted a new
legislative framework for electronic payment services, including cards, referred to as the Payment Services Directive. The Payment Services Directive prescribes common rules for licensing and supervision of payment services providers, including card
issuers and merchant acquirers, and for their conduct of business. The objective of the Payment Services Directive is to facilitate the creation of a single, internal payments market in the EU through harmonization of EU Member State laws governing
payment services. The Payment Services Directive must be incorporated into the national law of each EU Member State by November 2009. By the end of April 2011, licensing will be required and supervision will commence for American Express&#146; card
operations in the EU. One provision of the Payment Services Directive permits merchants to surcharge, subject to disclosure requirements, but also allows individual Member States to override this rule by prohibiting surcharging. The Payment Services
Directive complements another European initiative, the Single Euro Payments Area (&#147;SEPA&#148;), which is an industry-led initiative with support from EU institutions. Among other changes, SEPA will involve the adoption of new, pan-European
technical standards for cards and card transactions. All of the foregoing will entail costs to implement and maintain. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In the United
States, the Board of Governors of the Federal Reserve System and various Federal Reserve Banks have been following developments on interchange and have held several conferences focused on interchange rates. While the Federal Reserve has expressed
interest in monitoring this issue, it has not indicated the need to regulate interchange rates in the United States. In Congress, there have been several hearings on Visa/MasterCard interchange over the last two years, and at the request of
Congress, the Government Accountability Office undertook a study of the cost of credit card acceptance to federal agencies. During 2007, there were also a number of bills proposed in individual state legislatures seeking to impose caps on credit
card interchange or to prohibit card companies from charging merchant discount on the state tax portion of credit card purchases. Other proposals were aimed at increasing the transparency of card network rules for merchants. In addition, a number of
bills were proposed to establish merchant liability for the costs of a data security breach of a merchant&#146;s system or require merchants to adopt technical safeguards to protect sensitive card holder payment information. It is expected that
Congressional hearings and similar proposed state legislation will continue during 2008. It is possible that some of these proposals could surface at the federal level as well. In the event that governmental or regulatory activity to limit
interchange or merchant fees continues or increases, or state data security legislation is adopted, our revenues and profitability could be adversely affected. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">14 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_4"></A>U.S. CARD SERVICES </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">As a significant part of its proprietary Card issuing business, TRS and its U.S. banking
subsidiaries issue a wide range of Card products and services to consumers and small businesses in the United States. Our consumer travel business, which provides travel services to Cardmembers and other consumers, complements our core Card
business, as does our Travelers Cheques and prepaid services business. The proprietary Card business offers a broad set of card products to attract our target customer base. Core elements of our strategy are: </FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">focusing on acquiring and retaining high-spending, creditworthy Cardmembers across multiple groups; </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">designing Card products with features that appeal to specific customer segments; </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; padding-bottom:3px; margin-top:-2px" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"> <P STYLE="line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></P></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE="line-height:95%; vertical-align:top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the use of strong incentives to drive spending on our various Card products, including our Membership Rewards<FONT
FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> program and other rewards features; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; padding-bottom:3px; margin-top:-2px" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"> <P STYLE="line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></P></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE="line-height:95%; vertical-align:top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the use of loyalty programs such as Delta SkyMiles<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT>,
sponsored by our co-brand and other partners to drive spending; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the development and nurturing of wide-ranging relationships with co-brand and other partners; </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">promoting and using incentives for Cardmembers to use their Cards in new and expanded merchant categories, including for everyday spend and traditional cash and
check categories; and </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">a multi-card strategy (having multiple Card products in customers&#146; wallets); and </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">high-quality customer service. </FONT></P></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">American Express ranked highest in customer satisfaction among credit card companies in a study by J.D.&nbsp;Power and Associates, one of the world&#146;s most respected consumer research firms. The study, which compared the 10 largest U.S.
credit card issuers, looked at the key drivers of satisfaction: benefits and features, rewards, billing and payment processes, fees and rates, and problem resolution. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2"><B>Consumer and Small Business Services </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">We offer
individual consumer charge Cards such as the American Express<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Card, the American Express<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Gold Card, the Platinum Card<FONT
FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT>, and the ultra-premium Centurion<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Card; revolving credit Cards such as Blue from American Express<FONT FACE="Times New Roman"
SIZE="1"><SUP>&reg;</SUP></FONT>, Blue Cash<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Card from American Express and Blue Sky from American Express; and a variety of Cards sponsored by and co-branded with other corporations and
institutions, such as the Delta SkyMiles<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Credit Card from American Express, True Earnings<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Card exclusively for Costco Members,
Starwood Preferred Guest<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Credit Card and JetBlue Card<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> from American Express. </FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>Charge Cards</I> </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Our charge Cards, which carry no
pre-set spending limits, are primarily designed as a method of payment and not as a means of financing purchases of goods or services. Charges are approved based on a variety of factors including a Cardmember&#146;s current spending patterns,
payment history, credit record, and financial resources. Cardmembers generally must pay the full amount billed each month, and no finance charges are assessed on the balance. Charge Card accounts that are past due are subject, in most cases, to a
delinquency assessment and, if not brought to current status, may be cancelled. The no preset-spending limit and pay-in-full nature of these products attract high-spending Cardmembers who want to use a charge Card to facilitate larger payments.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">The charge Cards also offer flexible payment features to Cardmembers. The
Sign&nbsp;&amp; Travel<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> program gives qualified U.S. Cardmembers the option of extended payments for airline, cruise and certain travel charges that are purchased with our charge Cards. The
Extended Payment Option offers qualified U.S. Cardmembers the option of extending payment for certain charges on the charge Card in excess of a specified amount. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>Revolving Credit Cards</I> </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">We offer a variety of revolving credit Cards. These Cards have a range of different payment terms,
grace periods and rate and fee structures. Since late 1994, our lending balance growth has been among the top tier of card issuers. Much of this growth has been due to the breadth of our lending products, such as the American Express One<FONT
FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Card, Blue from American Express<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT>, Blue Cash<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> from American Express and
the Delta SkyMiles<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Credit Card from American Express, as well as the increased number of charge Cardmembers who have taken advantage of our &#147;lending on charge&#148; options (such as
the Sign&nbsp;&amp; Travel<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> and Extended Payment Option programs described above). </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>Co-brand
Cards</I> </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We issue Cards under co-brand agreements with selected commercial firms in the United States. The competition among card issuers
and networks for attractive co-brand card partnerships is quite intense because these partnerships can generate high-spending loyal cardholders. The duration of our co-brand arrangements generally ranges from five to ten years. Cardmembers earn
rewards provided by the partners&#146; respective loyalty programs based upon their spending on the co-brand Cards, such as frequent flyer miles, hotel loyalty points and cash back. We make payments to our co-brand partners, which can be
significant, based primarily on the amount of Cardmember spending and corresponding rewards earned on such spending and, under certain arrangements, on the number of accounts acquired and retained. We expense amounts due under co-brand arrangements
in the month earned. Payment terms vary by arrangement, but are monthly or quarterly. Generally, once we make payment to the co-brand partner, the partner is solely liable for providing rewards to the Cardmember under the co-brand partner&#146;s own
loyalty program. As the issuer of the co-brand card, we retain all the credit risk with the Cardmember and bear the receivables funding and operating expenses for such cards. The co-brand partner retains the risk associated with the miles, points or
other currency earned by the Cardmember under the partner&#146;s loyalty program. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>Co-brand Partnerships with Financial Services Institutions</I>
</FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We also issue Cards that are marketed under co-brand partnership arrangements with financial services partners. Such partnerships involve
the offering of a standard product (issued by TRS or one of its subsidiaries) to customers of the financial services partner, generally co-branded with the partner&#146;s name on the Card. Under these arrangements, we make payments to the financial
services partners that are primarily based on the number of accounts acquired and retained through the arrangement and the amount of Cardmember spending on such Cards. The duration of such arrangements generally ranges from three to seven years.
</FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">For example, during 2007 OPEN from American Express<FONT FACE="Times New Roman"
SIZE="1"><SUP>&reg;</SUP></FONT> announced strategic card relationships with Harris N.A. and BankAtlantic. Under the agreements, Harris and BankAtlantic will distribute OPEN from American Express<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP>
</FONT> products to small business customers in Illinois, Indiana, and Florida. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>American Express Centurion Bank and American Express Bank, FSB as
Issuers of Certain Cards</I> </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Our revolving credit Cards in the United States are issued by American Express Centurion Bank (&#147;Centurion
Bank&#148;), which markets primarily through direct mail and other remote marketing channels, and American Express Bank, FSB (&#147;AEBFSB&#148;), which markets through in-person selling and third-party co-brand partners as well. Centurion Bank also
issues certain consumer charge cards and AEBFSB issues certain OPEN charge cards. Both banks are wholly owned subsidiaries of TRS. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">Centurion Bank is a Utah-chartered industrial bank regulated, supervised and regularly examined by the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (&#147;FDIC&#148;). Centurion Bank is an
FDIC-insured depository institution. AEBFSB is a federal savings bank regulated, supervised and regularly examined by the Office of Thrift Supervision (&#147;OTS&#148;), a bureau of the U.S. Department of the Treasury. AEBFSB is an FDIC-insured
depository institution. The activities of Centurion Bank and AEBFSB are </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<FONT FACE="Times New Roman" SIZE="2">subject to examination by their respective regulators. Both banks take steps to maintain compliance programs to address the various safety and soundness,
internal control and compliance requirements, including anti-money laundering requirements, that apply to them. You can find a further discussion of the anti-money laundering initiatives affecting us under &#147;Corporate &amp; Other&#148; below.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Centurion Bank is subject to the risk-based capital adequacy requirements promulgated by the FDIC. Under these regulations, a bank is
deemed to be well-capitalized if it maintains a tier one risk-based capital ratio of at least 6%, a total risk-based capital ratio of at least 10% and a leverage ratio of at least 5%. Based on Centurion Bank&#146;s tier one risk-based capital, total
risk-based capital and leverage ratios, Centurion Bank was considered to be well-capitalized at December&nbsp;31, 2007. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">AEBFSB is subject
to the risk-based capital adequacy requirements promulgated by the OTS. Under these regulations, a federal savings bank is deemed to be well-capitalized if it maintains a tier one risk-based capital ratio of at least 6%, a total risk-based capital
ratio of at least 10%, and a tier one core capital ratio of at least 5%. Based on AEBFSB&#146;s tier one risk-based capital, total risk-based capital and tier one core capital ratios, AEBFSB was considered to be well-capitalized at December&nbsp;31,
2007. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>Card Pricing and Account Management </I></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">Certain of our Cards, particularly charge Cards, charge an annual fee that varies based on the type of Card and the number of Cards for each account. We also offer many revolving credit Cards with no annual fee but on which we assess
finance charges for revolving balances. Depending on the product, we also charge Cardmembers an annual program fee to participate in the Membership Rewards programs and fees for account performance (e.g., late fees) or for certain services (e.g.,
additional copies of account statements). We apply standards and criteria for creditworthiness to each Cardmember through a variety of means both at the time of initial solicitation or application and on an ongoing basis during the Card
relationship. We use sophisticated credit models and techniques in our risk management operations and believe that our strong risk management capabilities provide us with a competitive advantage. </FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2"><I>Membership Rewards<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Program </I></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">The Membership Rewards<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> program from
American Express has over 1,500 redemption partners worldwide, is offered in 98 markets around the world and is built around 48 programs, each tailored to local market needs. The program allows Cardmembers to earn one point for virtually every
dollar charged on eligible, enrolled American Express<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Cards, and then redeem their points for a wide array of rewards, including travel, retail merchandise, dining and entertainment,
financial services and even donations to benefit tens of thousands of charities. Points have no expiration date and there is no limit on the number of points one can earn. A large majority of spending by eligible Cardmembers earns points under this
program. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">The U.S. Membership Rewards<FONT FACE="Times New Roman"
SIZE="1"><SUP>&reg;</SUP></FONT> program has over 160 redemption partners and features over 250 merchandise brands. Enrollees may also customize their own redemption experiences through the program&#146;s Create Your Reward and Experiences options.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">In 2007, we introduced new Membership Rewards<FONT FACE="Times New Roman"
SIZE="1"><SUP>&reg;</SUP></FONT> program levels aligned with specific card products to better meet Cardmember lifestyle and reward program usage needs. American Express Cardmembers now participate in one of three Membership Rewards program levels
based on the Credit or Charge Card they have in their wallet. For those Cardmembers with American Express<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Credit Cards, including Blue from American Express<FONT FACE="Times New Roman"
SIZE="1"><SUP>&reg;</SUP></FONT>, we have created the Membership Rewards Express<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> program. American Express Charge Cardmembers with American Express<FONT FACE="Times New Roman"
SIZE="1"><SUP>&reg;</SUP></FONT> Green and Gold Cards have the Membership Rewards program. Platinum Card<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> members and Centurion<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT>
Cardmembers are enrolled in the Membership Rewards First<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> program. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">During the year we also announced a number of innovations and expanded our list of redemption
partners across all levels of the Membership Rewards<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> program. We launched Points Advance</FONT><FONT FACE="Times New Roman" SIZE="1"><SUP>SM</SUP></FONT><FONT FACE="Times New Roman"
SIZE="2">, which allows </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<FONT FACE="Times New Roman" SIZE="2">Cardmembers to obtain points against future points earned at the time they choose to redeem points for a reward. We also launched Flight Finder and Room
Finder, two innovative online tools for booking award travel. Flight Finder and Room Finder enable Charge Cardmembers enrolled in Membership Rewards<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> to easily search award inventory,
transfer points directly into a frequent flyer or frequent guest account, and book flights or hotel stays in a single online transaction. We added several new program partners to our list of some of the world&#146;s finest retail establishments and
service providers, including the addition of luxury fashion brand Salvatore Ferragamo to First Collection</FONT><FONT FACE="Times New Roman" SIZE="1"><SUP>SM</SUP></FONT><FONT FACE="Times New Roman" SIZE="2">, a private portfolio of premium partners
and rewards available exclusively to Platinum Card<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> and Centurion<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Card members enrolled in the Membership Rewards First<FONT
FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> program. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">When a Cardmember
enrolled in the Membership Rewards<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> program uses the Card, we establish reserves to cover the cost of estimated future reward redemptions for points earned to date. When a Membership
Rewards<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> program enrollee redeems a reward using Membership Rewards<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> points, we make a payment to the Membership Rewards<FONT
FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> program partner providing the reward pursuant to contractual arrangements. Because of higher charge volumes and increased customer participation in Membership Rewards<FONT
FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT>, the expense of the program has increased both in the United States and internationally over the past several years and continues to grow. At year end, we estimated that current Cardmembers
will redeem approximately 90% of their points. For more information on our Membership Rewards Program, see &#147;Critical Accounting Policies&#150;Reserves for Membership Rewards<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT>
Costs&#148; appearing on page 31 of our 2007 Annual Report to Shareholders, which information is incorporated herein by reference. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">Despite the increasing costs of the Membership Rewards<FONT FACE="Times New Roman"
SIZE="1"><SUP>&reg;</SUP></FONT> program as penetration and usage expand, it plays a vital role in our profitability. The program continues to be an important driver of Cardmember spending and loyalty. We believe, based on historical experience,
that Cardmembers enrolled in rewards programs yield higher spend, stronger credit performance and greater profit for us. For the three-year period through the end of 2007, total spending by U.S. Membership Rewards<FONT FACE="Times New Roman"
SIZE="1"><SUP>&reg;</SUP></FONT> participants increased by 52%. By offering a broader range of redemption choices, we have given our Cardmembers more flexibility in the use of their rewards points and favorably affected our average cost per point.
We continually seek to optimize the overall economics of the program and make changes to enhance its value to Cardmembers. Our program is also valuable to merchants that become redemption partners as we bring them high-spending Cardmembers and new
marketing channels to reach these Cardmembers. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>Cardmember Special Services and Programs </I></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B></B>Throughout the world, our Cardmembers have access to a variety of fee-free and fee-based special services and programs, depending on the type of
Cards they have. Examples of these special services and programs include:<B> </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="51%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="47%"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2.00em; text-indent:-1.50em"><FONT FACE="Times New Roman" SIZE="2">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the Membership Rewards<FONT FACE="Times New Roman"
SIZE="1"><SUP>&reg;</SUP></FONT> program;</FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2.00em; text-indent:-1.50em"><FONT FACE="Times New Roman"
SIZE="2">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Global Assist<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Hotline;</FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:2.00em; text-indent:-1.50em"><FONT FACE="Times New Roman" SIZE="2">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buyer&#146;s Assurance Plan;</FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2.00em; text-indent:-1.50em"><FONT FACE="Times New Roman" SIZE="2">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Car Rental Loss and
Damage Insurance<BR>Plan;</FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2.00em; text-indent:-1.50em"><FONT FACE="Times New Roman"
SIZE="2">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase Protection Plan;</FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2.00em; text-indent:-1.50em"><FONT
FACE="Times New Roman" SIZE="2">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Emergency Card Replacement;</FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:2.00em; text-indent:-1.50em"><FONT FACE="Times New Roman" SIZE="2">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Return Protection;</FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2.00em; text-indent:-1.50em"><FONT FACE="Times New Roman" SIZE="2">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Manage Your Card Account
Online;</FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2.00em; text-indent:-1.50em"><FONT FACE="Times New Roman"
SIZE="2">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Year-End Summary;</FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="margin-top:0px;margin-bottom:1px; margin-left:2.00em; text-indent:-1.50em"><FONT
FACE="Times New Roman" SIZE="2">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;American Express Roadside Assistance Services;</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2.00em; text-indent:-1.50em"><FONT FACE="Times New Roman" SIZE="2">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;American Express Bill Pay<FONT FACE="Times New Roman"
SIZE="1"><SUP>&reg;</SUP></FONT>;</FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2.00em; text-indent:-1.50em"><FONT FACE="Times New Roman"
SIZE="2">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Emergency Check Cashing Privileges;</FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:2.00em; text-indent:-1.50em"><FONT FACE="Times New Roman" SIZE="2">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Automatic Flight Insurance;</FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2.00em; text-indent:-1.50em"><FONT FACE="Times New Roman" SIZE="2">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premium Baggage
Protection;</FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2.00em; text-indent:-1.50em"><FONT FACE="Times New Roman"
SIZE="2">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assured Reservations;</FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2.00em; text-indent:-1.50em"><FONT
FACE="Times New Roman" SIZE="2">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Online Fraud Protection Guarantee;</FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:2.00em; text-indent:-1.50em"><FONT FACE="Times New Roman" SIZE="2">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit Card Registry;</FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2.00em; text-indent:-1.50em"><FONT FACE="Times New Roman" SIZE="2">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit Bureau Monitoring
and Reporting;</FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2.00em; text-indent:-1.50em"><FONT FACE="Times New Roman"
SIZE="2">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Identity Theft Assistance;</FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2.00em; text-indent:-1.50em"><FONT
FACE="Times New Roman" SIZE="2">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Event Ticket Protection Plan; and</FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P
STYLE="margin-top:0px;margin-bottom:1px; margin-left:2.00em; text-indent:-1.50em"><FONT FACE="Times New Roman" SIZE="2">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Platinum Office Program</FONT></P></TD></TR>
</TABLE> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">18 </FONT></P>


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<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2"><I>OPEN from American Express<FONT FACE="Times New Roman"
SIZE="1"><SUP>&reg;</SUP></FONT> </I></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In addition to our U.S. Consumer Card business, through AEBFSB we are also a leading provider of
financial services to small businesses (firms that generally have less than 100 employees and/or annual sales of $10 million or less), a key growth area in the United States. OPEN from American Express (&#147;OPEN&#148;) offers small business owners
a wide range of tools, services and savings designed to meet their evolving needs, including: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">charge and credit Cards; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">access to lines of credit up to $100,000; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">discounts at select suppliers of business services and products, including airline tickets, car rentals, hotel stays, package shipping, computer and software
equipment, telecommunications, printing and photocopying services and other business services; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">expense management reporting; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">enhanced online account management capabilities; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">retail and travel protections such as baggage insurance; and </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">travel services. </FONT></P></TD></TR></TABLE> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">During 2007, we continued to expand the breadth of products and services offered by OPEN<FONT
FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> through the following: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; padding-bottom:3px; margin-top:-2px" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"> <P STYLE="line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></P></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE="line-height:95%; vertical-align:top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">The introduction of The Plum Card</FONT><FONT FACE="Times New Roman" SIZE="1"><SUP>SM</SUP></FONT><FONT
FACE="Times New Roman" SIZE="2"> from OPEN from American Express<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT>, a new trade terms product intended to respond to small business owners&#146; need to better manage cash flow and free
working capital by providing them with the option to defer payment or receive early pay discounts for purchases made on the Card; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; padding-bottom:3px; margin-top:-2px" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"> <P STYLE="line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></P></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE="line-height:95%; vertical-align:top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">The announcement of two new agent bank agreements with Harris N.A. and BankAtlantic, allowing the distribution of our
OPEN from American Express<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> small business charge and credit products in Illinois, Indiana, and Florida. In both cases, American Express will serve as the card issuer and will partner with
each institution to develop joint marketing efforts for each region. </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; padding-bottom:3px; margin-top:-2px" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"> <P STYLE="line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></P></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE="line-height:95%; vertical-align:top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">The enhancement of the OPEN from American Express<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Business
Platinum Card<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> with the expansion of certain travel and business benefits, including: complimentary domestic companion airfare; web content and special offers; the expansion of the hotels
and destinations in the Fine Hotels&nbsp;&amp; Resorts Program; increased baggage insurance; and the expansion of coverage for the Premium Global Assist<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> hotline;
</FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; padding-bottom:3px; margin-top:-2px" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"> <P STYLE="line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></P></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE="line-height:95%; vertical-align:top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">The launch of the Platinum Office Program with OPEN from American Express<FONT FACE="Times New Roman"
SIZE="1"><SUP>&reg;</SUP></FONT> and The Regus Group, the world&#146;s largest provider of workplace solutions, which will provide Business Platinum Card members access to flexible office space, services and technology, generally only available to
much larger corporations; and </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; padding-bottom:3px; margin-top:-2px" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"> <P STYLE="line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></P></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE="line-height:95%; vertical-align:top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">An additional benefit on the TrueEarnings<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Business Card
from Costco and American Express, offering an annual gasoline rebate of up to 5% at Costco Gasoline and stand-alone gas stations. </FONT></P></TD></TR></TABLE> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">These programs are in addition to OPEN<FONT FACE="Times New Roman"
SIZE="1"><SUP>&reg;</SUP></FONT> Savings, which is a program that offers savings for OPEN customers on travel and other major business expenses simply by using their American Express<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT>
Business Card at participating companies. These savings may be combined with any existing discounts or offers. During 2007, we expanded OPEN<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Savings by signing new partners and expanding
relationships with existing ones in various categories, including American Express Incentive Services and internet services and products from Yahoo! Search Marketing and Yahoo! Small Business. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">19 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>Card Issuing Business&#151;Competition </I></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Our proprietary Card business encounters substantial and intense competition in the United States and internationally. As a card issuer, we compete in the
United States with financial institutions (such as Citibank, Bank of America, JPMorgan Chase, and Capital One Financial) that issue general purpose charge and credit cards, primarily under revolving credit plans, and Discover Financial Services,
which issues the Discover Card on the Discover Business Services network. We also encounter limited competition from businesses that issue their own cards or otherwise extend credit to their customers, such as retailers and airline associations,
although these cards are generally accepted only at limited locations. Because of continuing consolidations among banking and financial services companies and credit card portfolio acquisitions by major card issuers, there are now a smaller number
of significant issuers. The largest competing issuers have continued to grow, in several cases by acquiring card portfolios, and also by cross-selling through their retail branch networks, and competition among all issuers remains intense.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Competing card issuers offer a variety of products and services to attract cardholders, including premium cards with enhanced services or
lines of credit, airline frequent flyer program mileage credits, cash rebates and other reward or rebate programs, services for small business owners, &#147;teaser&#148; promotional interest rates for both credit card acquisition and balance
transfers, and co-branded arrangements with partners that offer benefits to cardholders. In recent years we have encountered increasingly intense competition in the small business sector, as competitors have targeted OPEN&#146;s customer base and
our leadership position in providing financial services to small businesses. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Most financial institutions that offer demand deposit
accounts also issue debit cards to permit depositors to access their funds. Use of debit cards for point-of-sale purchases has grown as most financial institutions have replaced ATM cards with general purpose debit cards bearing either the Visa or
MasterCard logo. As a result, the volume of transactions made with debit cards in the United States has continued to increase significantly and has grown more rapidly than credit and charge card transactions. Debit cards are marketed as replacements
for cash and checks, and transactions made with debit cards are typically for small dollar amounts. The ability to substitute debit cards for credit and charge cards is limited because there is no credit extended and the consumer must have
sufficient funds in his or her demand deposit account to pay for the purchase at the time of the transaction. We do not currently issue point-of-sale debit cards for use on the American Express network. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The principal competitive factors that affect the card-issuing business include: </FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the features and the quality of the services, including rewards programs, provided to Cardmembers; </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the number, spending characteristics and credit performance of Cardmembers; </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the quantity and quality of the establishments that accept Cards; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the cost of Cards to Cardmembers; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">pricing, payment and other Card account terms and conditions; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the number and quality of other charge and credit cards available to Cardmembers; </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the nature and quality of expense management data capture and reporting capability; </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the success of targeted marketing and promotional campaigns; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">reputation and brand recognition; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the ability of issuers to manage credit and interest rate risk throughout the economic cycle; </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the ability of issuers to implement operational and cost efficiencies; and </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the quality of customer service. </FONT></P></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">As
the payment industry continues to evolve, we are also beginning to face competition from non-traditional players, such as online networks and telecom providers, that leverage new technologies and customers&#146; existing charge and credit card
account relationships to create payment solutions. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">20 </FONT></P>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>Financing Activities </I></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">American Express Credit Corporation, a wholly owned subsidiary of TRS, along with its subsidiaries (&#147;Credco&#148;), purchases the majority of charge Card receivables arising from the use of Cards issued in the
United States and in certain currencies outside the United States. Credco finances the purchase of receivables principally through the issuance of commercial paper and the sale of medium- and long-term notes. Centurion Bank and AEBFSB finance their
revolving credit receivables, in part, through the sale of short- and medium-term notes and certificates of deposit in the United States. TRS, Centurion Bank and AEBFSB also fund receivables through asset securitization programs. The cost of funding
Cardmember receivables and loans is a major expense of Card operations. (You can find a discussion of our securitization and other financing activities on page 29, page 32, pages 42-48 and pages 55-56 under the caption &#147;Financial Review,&#148;
and Note 6 on pages 85-87 of our 2007 Annual Report to Shareholders, which portions we incorporate herein by reference.) </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>Card Issuing
Business&#151;Regulation </I></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The charge card and consumer lending businesses are subject to extensive regulation. In the United States, we
are subject to a number of federal laws and regulations, including: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the Equal Credit Opportunity Act (which generally prohibits discrimination in the granting and handling of credit); </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the Fair Credit Reporting Act (&#147;FCRA&#148;), as amended by the Fair and Accurate Credit Transactions Act (&#147;FACT Act&#148;) (which, among other things,
regulates use by creditors of consumer credit reports and credit prescreening practices and requires certain disclosures when an application for credit is rejected); </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the Truth in Lending Act (&#147;TILA&#148;) (which, among other things, requires extensive disclosure of the terms upon which credit is granted), including the
amendments to TILA that were adopted through the enactment of the Fair Credit and Charge Card Disclosure Act (which mandates certain disclosures on credit and charge card applications); </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the Fair Credit Billing Act (which, among other things, regulates the manner in which billing inquiries are handled and specifies certain billing requirements);
</FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the Electronic Funds Transfer Act (which regulates disclosures and settlement of transactions for electronic funds transfers including those at ATMs); and
</FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Federal and state laws and regulations that generally prohibit engaging in unfair and deceptive business practices. </FONT></P></TD></TR></TABLE> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Certain federal privacy-related laws and regulations govern the collection and use of customer information by financial institutions (see &#147;Corporate
&amp; Other&#148; below). Federal legislation also regulates abusive debt collection practices. In addition, a number of states, the European Union, and many foreign countries in which we operate have significant consumer credit protection and
disclosure and privacy-related laws (in certain cases more stringent than the laws of the United States). Bankruptcy and debtor relief laws affect us to the extent that such laws result in amounts owed being classified as delinquent and/or charged
off as uncollectible. Card issuers and card networks are subject to anti-money laundering and anti-terrorism legislation, including, in the United States, the Patriot Act. (For a discussion of this legislation and its effect on our business, see
&#147;Regulation&#151;General&#148; within &#147;Corporate &amp; Other&#148; below.) </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Centurion Bank, AEBFSB and our other bank entities
are subject to a variety of laws and regulations applicable to financial institutions. Changes in such laws and regulations or in the regulatory application or judicial interpretation thereof could impact the manner in which we conduct our business
and the costs of compliance. The regulatory environment in which our Card and lending businesses operate has become increasingly complex and robust. The U.S. Congress and regulators, as well as various consumer advocacy groups, have continued their
focus and attention on certain practices of credit card issuers, such as increases in APRs, changes in the terms of the account, and the types and levels of fees and financial charges charged by card </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<FONT FACE="Times New Roman" SIZE="2">issuers for, among other things, late payments, returned checks, payments by telephone, copies of statements and the like. We regularly review and, as
appropriate, refine our business practices in light of existing and anticipated developments in laws, regulations and industry trends so we can continue to manage our business prudently and consistent with regulatory requirements and expectations.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B></B>In January 2003, the Federal Financial Institutions Examination Council (the &#147;FFIEC&#148;), an interagency body composed of
the principal U.S. federal entities that regulate banks and other financial institutions, issued new guidance to the industry on credit card account management and loss allowance practices (the &#147;Guidance&#148;). The Guidance covers five areas:
(i)&nbsp;credit line management; (ii)&nbsp;over-limit practices; (iii)&nbsp;minimum payment and negative amortization practices; (iv)&nbsp;workout and forbearance practices; and (v)&nbsp;certain income (fee) recognition and loss allowance practices.
The Guidance is generally applicable to all institutions under the supervision of the federal bank regulatory agencies that comprise the FFIEC, although it is primarily the result of the identification by bank regulators in their examinations of
other credit card lenders&#146; practices deemed by them to be inappropriate, particularly, but not exclusively, with regard to subprime lending programs. At present, we do not have any lending programs that target the subprime market. Centurion
Bank and AEBFSB evaluate and discuss the Guidance with their respective regulators on an ongoing basis as part of their regulatory examination processes, and, as a result, may refine their practices from time to time based on regulatory input. The
Guidance has not had, nor do we expect it to have, any material impact on our businesses or practices.<B> </B></FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>American Express Consumer Travel
Network&#151;USA </I></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">The American Express Consumer Travel Network&#151;USA provides
travel, financial and Cardmember services to consumers through American Express-owned travel service offices, call centers, participating American Express Representatives (independently-owned travel agency locations that operate under the American
Express brand) and the Consumer Travel Web site. U.S. Consumer Travel has distinguished itself in the luxury marketplace through its Platinum Travel Services and Centurion Travel Services, which provide programs such as the International Airline
Program, which offers two-for-one fares on certain international first and business class tickets, and the Fine Hotels&nbsp;&amp; Resorts program, a luxury hotel program offering room upgrades and value-added amenities. Other premium programs
developed by Consumer Travel for Centurion and Platinum Card members include Centurion Cruise Privileges<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT>, Centurion Destinations<FONT FACE="Times New Roman"
SIZE="1"><SUP>&reg;</SUP></FONT> and Platinum Destinations<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Vacations, the Private Jets Program, Private Villas and Yachts. Consumer Travel also provides Membership Rewards<FONT
FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> programs designed for specific Cardmember segments such as Membership Rewards Land&nbsp;&amp; Sea packages and Gold Card Destinations. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">In 2007, we launched the American Express Going Once<FONT FACE="Times New Roman"
SIZE="1"><SUP>&reg;</SUP></FONT> Web site, where for a limited time U.S. and U.K. Cardmembers had an opportunity to purchase more than 25 travel packages in a declining price auction, including a luxury RV trip across America, an Antarctica
adventure and a South African safari. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In addition, the Consumer Travel business operates a wholesale travel business in the United States
through our Travel Impressions subsidiary. (A wholesaler purchases inventory, such as hotel rooms, from suppliers and then resells the services to the customer at retail prices that the wholesaler determines.) Our wholesale travel business packages
American Express Vacations and distributes travel packages through other retail travel agents and private label brands for third parties in the United States. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">Our Consumer Travel Web site, americanexpress.com/travel, offers a full range of travel rates and discounts on airfares, hotels, car rentals, last-minute deals, cruises and full vacation packages. The Web site offers
unique </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">American Express Cardmember benefits such as an American Express Travel Office locator, Travel Specialist finder tools, double Membership Rewards
points, and travel planning resources and destination content through the &#147;Local Color&#148; portion of the Web site. In addition, Cardmembers are able to redeem Membership Rewards points for some categories of travel through our Web site, as
well as through our call centers and Travel Offices. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In 2007, Consumer Travel attracted 12 new members with 35 locations to our
Representative Network, including Morris Murdock Travel, Piedmont Travel, and Hunter World Travel. In addition, we entered into an </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<FONT FACE="Times New Roman" SIZE="2">agreement in 2007 with Smithsonian Journeys, the educational travel program of the Smithsonian Institution and the world&#146;s largest museum-based travel
program, to offer Smithsonian Journeys&#146; cultural and educational group trips to Cardmembers. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">TRS&#146; worldwide travel network of
retail travel locations is important in supporting the American Express brand and providing Cardmember servicing throughout the world, including a range of Traveler Cheques, Gift Cheques, Gift Cards and foreign exchange services. </FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>Consumer Travel Network&#151;USA&#151;Competition </I></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">American Express Consumer Travel competes with a variety of different competitors including traditional &#147;brick and mortar&#148; travel agents, credit card companies with significant travel benefits, online travel agents and travel
suppliers that distribute their products to consumers directly via the Internet or telephone-based customer service centers. In recent years we have experienced an increasing presence of &#147;niche&#148; players that are seeking to capitalize on
the growth in the luxury travel segment by combining luxury travel offers with concierge-type services. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_5"></A>INTERNATIONAL CARD SERVICES </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We issue our charge and credit Cards in numerous countries around the globe.
Although our geographic scope is widespread, we generally do not have significant share in the markets in which we operate. We focus primarily on those markets that we believe offer us the greatest financial opportunity. For discussion of Cards
issued internationally through our GNS partner relationships, please see the section &#147;Global Network Services&#148; above. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The
Company continued to bolster its international proprietary Card business through the launch of numerous new or enhanced Card products during 2007. These are Cards that we issue, either on our own or, as further described below, as co-brands with
partnering institutions. This past year, among other new proprietary products, we announced or launched Cards with Harrods in the United Kingdom, BMW in Germany and KingFisher Airlines in India. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">We offer many of the same programs and services in our international proprietary Card issuing
business as we do in our U.S. proprietary issuing business. For example, as in the United States, we offer various flexible payment options similar to our Sign&nbsp;&amp; Travel<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> program
and our Extended Payment Option to Cardmembers in several international markets. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Also, as in the United States, we issue Cards
internationally under distribution agreements with banks. Another example of our distribution partnerships is affinity cards with fraternal, professional, educational and other organizations. For instance, we have been successful in penetrating the
affinity card segment in Australia, where we issue Cards with the majority of the largest professional associations in that country. In Australia, affinity cards are a substantial part of our total revolving portfolio and contribute to our
proprietary consumer lending activities. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2"><B></B>As in the United States, rewards
programs are a strong driver of Cardmember spending in the international consumer business. We have more than 1,400 redemption partners across our international business, with an average of 80 partners in each country; less than 23% of these
partners are in the travel industry. Cardmembers can redeem their points with more than 50 airlines and over 200 hotels. Our redemption options include travel, retail merchandise, entertainment, shopping and recreation gift certificates,
experiences, financial services and charity rewards. In 2007, we continued to enhance our rewards programs in several markets, offering more flexible choices that enable Cardmembers to redeem Membership Rewards<FONT FACE="Times New Roman"
SIZE="1"><SUP>&reg;</SUP></FONT> points more quickly. For example, we significantly expanded our Pay with Points program to include more redemption options, markets and channels. With the expansion of Pay with Points for travel, Membership
Rewards<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> points can now be redeemed for rewards with virtually all major airlines and hotel groups. <B> </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;
</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Membership Travel Services International provides premium travel and concierge services to our Platinum
and Centurion Customers, through 25 exclusively dedicated call centers in 25 countries. Additionally, Membership Travel Services operates 24 proprietary Travel Service Offices in Mexico, Italy and Argentina to provide all Cardmembers with travel,
foreign exchange and general card service assistance. We have taken steps to enhance our capabilities to sell exclusively-negotiated benefits and luxury travel packages with preferred suppliers through the Fine Hotels and Resorts Program, American
Express Vacations and American Express&#146;s International Airline Program to create tangible value and memorable experiences for our Cardmembers. In 2007, we added Delta Air Lines, British Airways, and Emirates to the existing 18 airline partners
in our International Airline Program (IAP), which is exclusively available to Platinum and Centurion Cardmembers and which allows them to receive complimentary companion tickets or a class upgrade when flying on qualifying international flights in
business or first class. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">We increased the flexibility of payment for travel and
concierge services by allowing Platinum and Centurion Cardmembers to use their Membership Rewards<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> points to pay for their travel purchases in 11 international markets. </FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>International Proprietary Consumer Card&#151;Competition </I></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">Compared to the United States, consumers outside the United States use general purpose charge and credit cards for a smaller percentage of their total payments, with some large emerging market countries just beginning to transition to card
usage in any meaningful way. Currently, we have a small share of consumer general purpose charge and credit card spending outside the United States. Internationally, our proprietary Card issuing business is subject to competition from multinational
banks, such as Citibank, HSBC and Banco Santander, as well as many local banks and financial institutions. Globally, we view Citibank and HSBC as our strongest competitors, as they currently offer card products in a large number of markets.
</FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_6"></A>GLOBAL COMMERCIAL SERVICES </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Through our Global Commercial Services (&#147;GCS&#148;) group, we provide expense
management services to more than 100,000 firms worldwide through our Global Commercial Card&nbsp;&amp; Services and Global Travel Services. American Express is a leading global issuer of commercial Cards and is also a leading global travel
management company for corporations and businesses. During 2007, we added or retained several major Commercial Card clients in the United States and internationally, including NCR, Hewlett Packard, Microsoft, Black&amp;Decker Corporation and
Novartis Pharmaceutical Corporation. Additionally, in 2007, we added or retained several American Express Business Travel clients in the United States and internationally, including Rohm and Haas Company, Zale Corporation and EADS. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">GCS offers four primary products and services: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Corporate Card, issued to individuals through a corporate account established by their employer and designed primarily for travel and entertainment spending;
</FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
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<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Corporate Purchasing Solutions, an account established by corporations to pay for everyday business expenses such as office and computer supplies;
</FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; padding-bottom:3px; margin-top:-2px" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"> <P STYLE="line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></P></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE="line-height:95%; vertical-align:top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">S2S</FONT><FONT FACE="Times New Roman" SIZE="1"><SUP>SM</SUP></FONT><FONT FACE="Times New Roman" SIZE="2"> suite of
products, which include electronic solutions for companies looking to streamline their procurement processes; and </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
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<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">American Express Business Travel, which helps businesses manage and optimize their travel expenses through a variety of travel-related products, services and
solutions. </FONT></P></TD></TR></TABLE> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Global Commercial Card&nbsp;&amp; Services </B></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">Global Commercial Card&nbsp;&amp; Services (&#147;GCC&amp;S&#148;) offers a range of expense
management solutions to companies worldwide through our Corporate Card program, Corporate Purchasing Solutions, and electronic invoicing and payment services (Source-to-Settle (&#147;S2S&#148;<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP>
</FONT>)). </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">The American Express<FONT FACE="Times New Roman"
SIZE="1"><SUP>&reg;</SUP></FONT> Corporate Card is a charge card that individuals may obtain through a corporate account established by their employer for business purposes. Through our Corporate Card Program, companies can manage their travel,
entertainment and purchasing expenses and improve negotiating leverage with suppliers, among other benefits. We use our direct relationships with merchants to offer Corporate Card clients superior data about company spending, as well as streamlined
dispute resolution. We issue local currency Corporate Cards in over 45 countries, which we distribute through proprietary operations and partner banks, and international dollar Corporate Cards in over 100 countries. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Corporate Purchasing Solutions (&#147;CPS&#148;) helps large corporations and mid-sized companies manage their everyday spending. CPS is used to pay for
everyday goods and business expenses, such as office supplies, industrial supplies and business equipment in 24 markets around the world. This type of spending by corporations is less susceptible to economic downturns than traditional travel and
entertainment spending and helps to diversify the spending mix on our Commercial Cards. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman"
SIZE="2">The S2S<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> suite of products are designed to help companies improve the efficiency of their supply chain, reduce processing costs, improve cash management, and increase control and
compliance in the purchasing process. These solutions significantly expand the American Express suite of commercial card products and services and responds to clients&#146; needs as they transform their purchasing processes, from sourcing and
ordering through invoice and payment. During 2007, we developed and began marketing S2S Contract Audit&nbsp;&amp; Recovery</FONT><FONT FACE="Times New Roman" SIZE="1"><SUP>SM</SUP></FONT><FONT FACE="Times New Roman" SIZE="2">, an analytical tool
providing firms with best practices to achieve negotiated contract savings. We also unveiled eInvoice&nbsp;&amp; Pay, a fully integrated Electronic Invoice Presentment and Payment (EIPP) solution, which allows companies to process 100% of their
invoices and issue payments to suppliers from an online portal managed by American Express. Our focus on electronic payments also includes Buyer Initiated Payments (&#147;BIP&#148;), which allows clients to send us an &#147;approved to pay&#148;
data file, so that we can pay invoices via Corporate Purchasing Card or other forms of electronic payment. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT
FACE="Times New Roman" SIZE="2">In addition to providing expense management services to large and global corporations, our GCC&amp;S business markets the Commercial Card programs to middle market companies (defined in the United States as firms with
annual revenues of $10 million to $1 billion) worldwide. GCC&amp;S is focused on continuing to expand its business with mid-sized companies, which represent significant growth opportunities. Businesses of this size often do not have corporate card
programs. However, once enrolled in a corporate card program, mid-sized companies, which usually do not have well-defined purchasing programs, typically put a significant portion of their business spending (both travel and entertainment and
non-T&amp;E, such as office supplies) on the commercial card because they can gain control, savings and employee benefits. GCS offers the Savings at Work<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Program to mid-sized companies in
the United States, as well as similar programs globally, which provide companies with cash back and/or discounted pricing on everyday business products and services, such as car rentals, hotels, restaurants and overnight shipping. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">With the increased focus on cost containment by firms, we have experienced significant growth over the past few years in the Corporate Meeting Card,
which helps U.S.-based and international companies control company meeting expenses. The Corporate Meeting Card is available in 21 global markets and provides clients with a tool to capture such spending and provides company meeting planners with a
tool to simplify the meetings payment process and access to data to negotiate with suppliers. GCC&amp;S also offers the Corporate Defined Expense Program (&#147;CDEP&#148;). This product allows companies to set a maximum amount to be charged on a
CDEP Card before expiration and permits them to segregate spending data for specific purposes on projects. It is designed for companies that want to allocate funds for a specific purpose, such as employee relocations or training. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">During 2007, we introduced new products and service enhancements to improve the overall experience of our Commercial Cardmembers, including the entry
into a strategic partnership with Clear, the largest operator of security express lanes at airports in the United States, to offer Corporate Cardmembers preferred pricing on Clear membership and enrollment privileges. In addition, we now also
provide proprietary Platinum Cardmembers and Platinum Global Dollar Cardmembers with free access to American Airlines&#146; Admiral Club lounges around the world. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2"><B></B>GCC&amp;S also offers American Express @
Work<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT>, a secure, web-based suite of online tools that enables clients to manage their Corporate Card, Corporate Purchasing Solutions and Corporate Meeting Card programs on a 24/7 basis
through a single user interface. American Express @ Work<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> provides authorized client representatives online access to global management information to help them gain visibility into their
spending patterns, as well as the ability to make changes to their program or Commercial Card accounts through an easy to use online interface. American Express @ Work<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> also includes
automated expense reporting and reconciliation tools that enable clients to enforce program compliance and effectively integrate spend information with their internal accounting systems. This suite of online tools is intended to assist companies in
managing expenses more efficiently than offline alternatives, thereby decreasing both the direct and indirect costs associated with maintaining accounts and ensuring program compliance.<B> </B></FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>Global Commercial Card Business&#151;Competition </I></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The
commercial payments industry is dynamic and highly competitive, with competition increasingly intense at both the card network and card issuer levels. Our Commercial Card offerings have experienced increasing competition, including competitors&#146;
aggressive expansion into new and emerging markets, efforts to transition business-to-business spend from cash and check to electronic invoicing and payment vehicles, and expanded marketing and advertising budgets for commercial services.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In addition, both Visa and MasterCard have increased efforts to support card issuers such as U.S. Bank, JPMorgan Chase, GE Capital
Financial Inc. and Citibank (in the United States and globally, including Diner&#146;s Club North America, its affiliate), to build and support data collection and reporting necessary to satisfy customer requirements. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Commercial Card issuers have increasingly acquired niche technology offerings to enhance data capture capabilities and reporting functionality. These
efforts are built on the solid progress of the bankcard associations to offer more global, robust solutions. As such, global servicing, data quality, technological functionality and simplicity, and customer experience are among the key competitive
factors in the commercial card business. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Global Travel Services </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">Global Travel Services (&#147;GTS&#148;) consists of American Express Business Travel and Global Foreign Exchange Services. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">American Express Business Travel (&#147;Business Travel&#148;) provides globally integrated solutions, both online and offline, to help organizations manage and optimize their travel investments and service their
traveling employees. These solutions include travel reservation advice and booking transaction processing; travel expense management policy consultation; supplier negotiation and consultation; advisory services; management information reporting,
data analysis and benchmarking; and group and incentive travel services. Business Travel also provides 24-hour customer service to clients globally, both on a day-to-day and emergency basis. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Company operates one of the world&#146;s largest travel agencies with over 2,200 travel service locations in over 140 countries and territories
worldwide. In total, we processed $24.6 billion of travel spend globally in 2007 through proprietary operations and consolidated joint ventures. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">We continue to update our economic model and invest in innovative and new products, services and technologies to enhance the value that we deliver to our customers and address ongoing travel industry challenges and opportunities. For
example, we have substantially reduced our reliance on commission revenues from suppliers (such as airlines or hotels), and now generate revenues primarily from customers who pay for the services that we provide. In 2007, we launched several
innovative solutions and service enhancements that increased the savings and control clients could achieve amid rising costs in a strong demand environment, including: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="2%" VALIGN="top" ALIGN="left"> <P STYLE="line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></P></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE="line-height:95%; vertical-align:top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">American Express Intelligent Online Marketplace (&#147;AXIOM<FONT FACE="Times New Roman"
SIZE="1"><SUP>&#153;</SUP></FONT>&#148;), a tool to support policy enforcement and preferred vendor compliance at the point-of-sale; </FONT></P></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">AX HotelHub, an interface bringing together many hotel properties around the globe into a unique one-stop-shop, and delivering better control of hotel spend with a
more efficient way to manage corporate hotel programs both online and offline; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"> <P STYLE="line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></P></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE="line-height:95%; vertical-align:top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">American Express AXIS @ Work<FONT FACE="Times New Roman" SIZE="1"><SUP>&#153;</SUP></FONT>, a new global web-based
management information data reporting solution, which presents corporate travel purchasers and managers with centralized, online access to data on their firm&#146;s business expenditures; and </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">The global implementation and standardization of servicing technology, customer service processes and measurement. </FONT></P></TD></TR></TABLE> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">We offer a range of other solutions to our customers that provide them with savings, control,
services and traveler care. For example, we offer customers savings and benefits through the Preferred Extra supplier value programs and advisory services, which provide preferred supplier rates and consulting solutions in all areas of travel and
entertainment expense management. We also offer the TravelBahn<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> High-Speed Network, which is our data management network, and our TravelBahn<FONT FACE="Times New Roman"
SIZE="1"><SUP>&reg;</SUP></FONT> Distribution Solution, which provides access to airline inventory and fares for Business Travel customers with a number of carriers in North America and in select international markets. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Organic growth of the business along with strategies for acquiring and partnering with local market companies remain key components to Business
Travel&#146;s global growth strategy. In Hong Kong, we bought the remaining equity stake of Business Travel&#146;s joint venture partner Farrington American Express Travel Services Ltd., a leading Hong Kong travel services provider. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Business Travel has also moved many of its business processes and customer servicing online. In the United States, more than 50% of all Business Travel
transactions were processed online. In addition, the volume of online transactions is growing in other markets around the world. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Global
Foreign Exchange Services (&#147;FES&#148;) consists of retail and wholesale foreign exchange services and International Payments. Other than in Australia, Mexico, Singapore and Italy, where we operate foreign exchange offices in city locations, we
concentrate our retail foreign exchange business in key international airports. For corporate clients, our International Payments online product allows companies and banks to make cross-border payments in major foreign currencies at competitive
exchange rates. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>Global Travel Services&#151;Competition </I></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">Business Travel continues to face intense competition in the United States and internationally from numerous traditional and online travel management companies, as well as from direct sales by airlines and other
travel suppliers. Competition among travel management companies is mainly based on price, service, value creation, convenience, global capabilities and proximity to the customer. Competition also comes from corporate customers themselves, as some
companies have become accredited as in-house corporate travel agents. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">For many years, travel management companies have faced pressure on
revenues from airlines, as most carriers have stopped paying &#147;base&#148; commissions to travel agents for tickets sold. Carriers have also increased the number of transactions they book directly through their Web sites and other means. These
trends have reduced the revenue opportunities for travel agents because they do not receive distribution revenue from directly booked transactions. Recent announcements that several major airlines are in merger discussions indicate that the U.S.
airline industry may be entering a period of significant consolidation. These types of structural changes may result in additional challenges to travel management companies. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Overall, intense competition among travel management companies, the ongoing trends of airline direct sales, rise of low-cost carriers and ongoing
reductions in or elimination of airline commissions and fees continue to put pressure on revenue for travel agents. We believe that the restructuring of our business model over the last </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<FONT FACE="Times New Roman" SIZE="2">few years (which allows us to charge customers for the services we provide and the value we create), restructuring our expense base through the
rationalization of our call center locations, transitioning many of our services online, and leveraging our global presence, have helped us to balance these revenue pressures. In response to competitive pressures, we are continuing to look for new
ways to enhance the value we deliver for our customers both online and offline. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_7"></A>CORPORATE&nbsp;&amp; OTHER </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Corporate&nbsp;&amp; Other consists of corporate functions and auxiliary
businesses, including the Company&#146;s publishing business, Travelers Cheques and other prepaid products, and AEIDC and the continuing portions of AEBL not being sold to Standard Chartered PLC. We also discuss information relevant to the Company
as a whole in this section. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>American Express Publishing </B></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">Through American Express Publishing, we publish luxury lifestyle magazines such as
Travel+Leisure<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT>, T+L Golf<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT>, Food&nbsp;&amp; Wine<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> and Departures<FONT
FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT>; travel resources such as SkyGuide<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT>; business resources such as the American Express Appointment Book and SkyGuide Executive Travel,
a business traveler supplement; a variety of general interest, cooking, travel, wine, financial and time management books; branded membership services; a growing roster of international magazine editions; as well as directly sold and licensed
products. American Express Publishing also has a custom publishing group and is expanding its service-driven Web sites such as: travelandleisure.com, foodandwine.com, departures.com, tlgolf.com, tlfamily.com and eskyguide.com. We have an agreement
with Time Inc. under which it manages our publishing business, and we share profits relating to this business. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Global Travelers Cheques and Prepaid
Services (&#147;TCPS&#148;) </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">We have been in the business of issuing and selling
travelers checks since 1891. We sell the American Express<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Travelers Cheque (&#147;Travelers Cheque&#148; or &#147;Cheque&#148;) as a safe and convenient alternative to cash. Travelers
Cheques are available in U.S. dollars and five foreign currencies, including Euros. We also issue and sell other forms of paper travelers checks: American Express<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Gift Cheques, which are
available in U.S. and Canadian dollars, and the American Express<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Cheque-Secure Funds, which are available in dollars and Euros, and are offered in certain countries as a safe way to keep
cash at home. Sales of Travelers Cheques continued to decline in 2007. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">In addition
to travelers checks, TCPS also offers a variety of other prepaid products, including reloadable and non-reloadable prepaid cards. We offer prepaid gift cards in the United States: the American Express<FONT FACE="Times New Roman"
SIZE="1"><SUP>&reg;</SUP></FONT> Gift Card (&#147;Gift Card&#148;), which can be used in the United States at merchants that accept American Express Cards, and mall-branded gift cards, which can also be used at multiple unaffiliated merchants that
are located within a specific shopping mall and that accept the American Express<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Card. The Gift Cards we offer are not for use at car rental, cruise lines or ATMs and, subject to
applicable law, a monthly service fee applies 12 months after purchase of the gift card. Sales of gift cards continued to rise in 2007, reflecting the growing popularity of these products and our efforts to increase buying convenience for customers.
During the year, we expanded our gift card product offering to include a themed &#147;Thank You&#148; gift card and customizable gift cards. Both are designed for employers and businesses of all sizes who want a gift card they can personalize to
their company or to a particular rewards, incentive, or consumer promotion occasion. The custom gift card can be embossed on the front with a short message such as &#147;Congratulations&#148; or &#147;Happy Holidays.&#148; </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Through American Express Incentive Services L.L.C., a joint venture with Maritz Inc., we offer various incentive prepaid products, including the
Corporate Gift Cheque, the Incentive Funds Card and several points-based incentive cards. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We sell American Express prepaid products through a variety of channels, including sales directly to
consumers via phone and the Internet. Travelers Cheques and Gift Cheques are sold primarily through a broad network of selling outlets worldwide, including American Express travel offices, independent travel agents and financial institutions. In
2007, we announced a global, multi-year agreement with Travelex, the world&#146;s largest foreign exchange specialist, to offer Travelers Cheques through its global agency network of large banks and travel agencies, and directly to consumers through
its over 700 retail locations. Gift Cards are primarily sold through travel offices and retail establishments, including supermarkets and drug stores. During the year we announced an agreement under which Bank of America is selling the Gift Card in
its retail banking centers nationwide. We sometimes compensate selling outlets for their prepaid product sales. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">During 2007, we decided to
discontinue offering the Travelers Cheque Card, a reloadable prepaid card that was issued in the United States, the United Kingdom and Germany. This decision was based on our conclusion that travelers prefer paper Travelers Cheques when choosing a
prepaid travel money product. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>Travelers Cheques and Prepaid Cards&#151;Competition </I></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Travelers Cheques compete with a wide variety of financial payment products, including cash, foreign currency, checks, other brands of travelers checks,
and, increasingly, debit and ATM cards and, to a limited extent, competing prepaid cards, and in some circumstances, other payment cards. The principal competitive factors affecting the travelers check and prepaid card industry are: </FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the number and location of merchants willing to accept the form of payment; </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the availability to the consumer of other forms of payment; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
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<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the amount of fees charged to the consumer; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the compensation paid to, and frequency of settlement by, selling outlets; </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the accessibility of sales and refunds for the products; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the success of marketing and promotional campaigns; and </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the ability to service the customer satisfactorily, including for lost or stolen instruments. </FONT></P></TD></TR></TABLE> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Our prepaid cards (&#147;open-system&#148; cards that can be used at multiple unaffiliated sellers of goods or services) compete with the same payment
methods described above; however, gift cards compete primarily with cash, checks and other open-system and store-specific gift cards. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>Travelers Cheques
and Prepaid Cards&#151;Regulation </I></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">As an issuer of travelers checks, we are regulated in the United States under the &#147;money
transmitter&#148; or &#147;sale of check&#148; laws in effect in most states. These laws require travelers check (and, where applicable, prepaid card) issuers to obtain licenses, to meet certain safety and soundness criteria, to hold outstanding
proceeds of sale in highly-rated and secure investments, and to provide detailed reports. We invest the proceeds from sales of our Travelers Cheques and prepaid cards in accordance with applicable law, predominantly in highly-rated debt securities
consisting primarily of intermediate- and long-term federal, state and municipal obligations. Many states examine licensees annually. In addition, travelers check issuers are required by the laws of many states to comply with state unclaimed and
abandoned property laws under which such issuers must pay to states the face amount of any travelers check that is uncashed or unredeemed after 15 years. A few states have amended their abandoned property laws to apply to prepaid cards. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In the past few years, some states have enacted laws pertaining to the issuance and the sale of gift cards. We continue to monitor state legislative
activity restricting the fees that consumers can be charged or the expiration </FONT>
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<FONT FACE="Times New Roman" SIZE="2">dates that can apply to gift cards. In certain states where regulation has made it unprofitable for us to offer gift cards, we have limited or withdrawn from
selling these cards. Federal anti-money laundering regulations require, among other things, the registration of traveler check issuers as &#147;Money Service Businesses&#148; and compliance with anti-money laundering recordkeeping and reporting
requirements by issuers and selling outlets. At this time, stored value issuers and redeemers, while considered to be &#147;Money Service Businesses,&#148; are not required to register under these regulations. Outside the United States, there are
varying licensing and anti-money laundering requirements, including some that are similar to those in the United States. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Service and Technology
Infrastructure </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B></B>We continue to make significant investments, both in the United States and internationally, in our Card systems
and infrastructure to allow faster introduction and greater customization of products. We also are using technology to develop and improve our service capabilities to continue to deliver a high quality customer experience. For example, we maintain a
service delivery platform that our employees use in the Card business to support a variety of customer servicing and account management activities such as account maintenance, updating of Cardmember information, the addition of new Cards to an
account and resolving customer satisfaction issues. In international markets, we are building flexibility and enhancing our global platforms and capabilities, such as in revolving credit. <B> </B></FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We continue to leverage the Internet to lower costs, improve service quality and enhance our business model. During 2007, we broadened our focus to
include opportunities to use the Internet to drive revenue and build our brand, while continuing to focus on migrating transaction volumes at lower costs. We also continue to have more online interactions with U.S. customers than we do by telephone
or in person. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">As of year-end, customers had enrolled approximately 21&nbsp;million Cards globally in our &#147;Manage Your Card
Account&#148; service. This service enables Cardmembers to review and pay their American Express bills electronically, view and service their Membership Rewards program accounts and conduct various other functions quickly and securely online. We now
have an online presence in 63 markets around the world, including GNS markets. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We continue to devote substantial resources to our
technology platform to ensure the highest level of data integrity, security and privacy. In 2006, we and several other payment card networks formed PCI SS, an independent standards-setting organization to manage the evolution of the Data Security
Standard. (For a discussion of this organization, see the &#147;Global Network Services&#148; section above.) </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B></B>In 2002, we
outsourced most of our technology operations work to IBM. The various arrangements covered under our agreement with IBM range in term from seven to eleven years, with certain rights to extend. This arrangement currently enables us to benefit from
IBM&#146;s expertise while lowering our information technology costs. IBM is responsible for managing most of our day-to-day technology operations functions, including most of our mainframe, midrange and desktop systems; web hosting; database
administration; help desk services and data center operations. Our internal IT organization continues to retain the Company&#146;s key technology competencies, including information technology strategy, information security, managing strategic
relationships with technologies&#146; partners, developing and maintaining applications and databases and managing the technology portfolios of our businesses.<B> </B></FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2"><B>Regulation&#151;General </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Most aspects of our business are subject to rigorous regulation by U.S.
Federal and state regulatory agencies and securities exchanges and by non-U.S. government agencies or regulatory bodies and securities exchanges. Certain of our public disclosure, internal control environment and corporate governance principles are
subject to the Sarbanes-Oxley Act of 2002 and related regulations and rules of the SEC and the New York Stock Exchange, Inc. New laws or regulations or changes to existing laws and regulations (including changes in interpretation or </FONT>
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<FONT FACE="Times New Roman" SIZE="2">enforcement) could materially adversely affect our financial condition or results of operations. As a global financial institution, to the extent that
different regulatory systems impose overlapping or inconsistent requirements on the conduct of our business, we face complexity and additional costs in our compliance efforts. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We use information about our customers to develop and make available relevant, personalized products and services. Certain customers are given choices
about how we use and disclose their information, and we give them notice regarding the measures we take to safeguard this information. Regulatory activity in the areas of privacy and data protection continues to increase worldwide, spurred by
advancements in technology and related concerns about the rapid and widespread dissemination and use of information. As noted above, as part of our efforts to enhance payment account data security, in 2006, we and several other payment card networks
formed PCI SSC, an independent standards-setting organization to manage the evolution of the PCI Data Security Standard. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The
Gramm-Leach-Bliley Act (&#147;GLBA&#148;) became effective on July&nbsp;1, 2001. GLBA provides for disclosure of a financial institution&#146;s privacy policies and practices and affords customers the right to &#147;opt out&#148; of the
institution&#146;s disclosure of their personal financial information to unaffiliated third parties (with limited exceptions). This legislation does not preempt state laws that afford greater privacy protections to consumers, and several states have
adopted such legislation. For example, in 2003 California enacted that state&#146;s Financial Information Privacy Act. We continue our efforts to safeguard the data entrusted to us in accordance with applicable law and our internal data protection
policies, including taking steps to reduce the potential for identity theft, while seeking to collect and use data properly to achieve our business objectives. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">Approximately 38 states, Puerto Rico and the District of Columbia have enacted security breach legislation, requiring varying levels of consumer notification in the event of a security breach, and several other states
are considering similar legislation. In addition, several states are considering legislation requiring certain data security standards that could result in higher technology costs for the Company. In 1995, the European Parliament and Council passed
European Directive 95/46/EC on the protection of individuals with regard to the processing of personal data and on the free movement of such data (commonly referred to as the Data Protection Directive), which obligates the controller of an
individual&#146;s personal data to take the necessary technical and organizational measures to protect personal data. The Data Protection Directive has been implemented through local laws regulating data protection in European Union Member States.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Fair Credit Reporting Act of 1970 (&#147;FCRA&#148;) regulates the disclosure of consumer credit reports by consumer reporting
agencies and the use of consumer credit report information by banks and other companies. FCRA was significantly amended by the enactment in December 2003 of the Fair and Accurate Credit Transactions Act (the &#147;FACT Act&#148;). The FACT Act
requires any company that receives information concerning a consumer from an affiliate, subject to certain exceptions, to permit the consumer to opt out from having that information used to market the company&#146;s products to the consumer. In
October 2007, the FDIC issued a final rule implementing the affiliate marketing provisions of the FACT Act. Other Federal banking agencies are expected to promulgate similar rules imminently. Companies subject to FDIC oversight must comply with the
rules by October&nbsp;1, 2008. The FACT Act further amends the FCRA by adding several new provisions designed to prevent or decrease identity theft and to improve the accuracy of consumer credit information. The FDIC published a final rule in
October 2007 requiring financial institutions to implement a program containing reasonable policies and procedures to address the risk of identity theft and to identify accounts where identity theft is more likely to occur. Other Federal banking
agencies are expected to adopt similar rules in the near future. Companies subject to FDIC oversight must comply with the rule by November&nbsp;1, 2008. The FACT Act also imposes new duties on both consumer reporting agencies and on businesses that
furnish or use information contained in consumer credit reports. For example, a furnisher of information is required to implement procedures to prevent the reporting of any information that it learns is the result of identity theft. Also, if a
consumer disputes the accuracy of information provided to a consumer reporting agency, the furnisher of that information must conduct an investigation and respond to the consumer in a timely fashion. The Federal banking regulatory agencies and the
FTC have proposed rules that specify the circumstances under which furnishers of information would be required to investigate disputes regarding the accuracy of the information provided to a </FONT>
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<FONT FACE="Times New Roman" SIZE="2">consumer reporting agency. The FACT Act also requires grantors of credit that use consumer credit report information in making a determination to offer a
borrower credit on terms that are &#147;materially less favorable&#148; than the terms offered to most of the lender&#146;s other customers to notify the borrower that the terms are based on a consumer credit report. In such a case the borrower is
entitled to receive a free copy of the report from the consumer reporting agency. Grantors of credit using pre-screened consumer credit report information in credit solicitations are also required to include an enhanced notice to consumers that they
have the right to opt out from receiving further pre-screened offers of credit. The enactment of the FACT Act and the promulgation of rules implementing it are not expected to have a significant impact on our business or practices. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In the United States, the Patriot Act was enacted in October 2001 in the wake of the September&nbsp;11, 2001 terrorist attacks. The Patriot Act
substantially broadened existing anti-money laundering (&#147;AML&#148;) and terrorist financing legislation and the extraterritorial jurisdiction of the United States. The Patriot Act contains a wide variety of provisions aimed at fighting
terrorism and money laundering, including provisions aimed at impeding terrorists&#146; ability to access and move funds used in support of terrorist activities. Among other things, the Patriot Act requires federal regulators, led by the Secretary
of the Treasury, to regulate or take other steps to require financial institutions to establish AML programs that meet certain standards, including expanded reporting and enhanced information gathering and recordkeeping requirements. While American
Express has long maintained AML programs in our businesses, the Secretary of the Treasury has issued regulations under the Patriot Act applicable to certain of our business activities conducted within AEB, TRS and their affiliates, prescribing
minimum standards for such AML programs. In response to these regulations, as well as other AML regulatory requirements that we are subject to (both in the United States and in other jurisdictions in which we conduct business), we have enhanced our
existing AML compliance programs and developed and implemented new ones. For example, in April 2002, the U.S. Secretary of the Treasury issued regulations applicable to operators of credit card networks (such as Visa, MasterCard, Diners Club,
Discover and American Express) that would require credit card networks to have risk-based programs to screen institutions that are licensed to issue cards or acquire merchants on their networks. As a result, we developed and implemented a program
for our GNS business. We have also developed and implemented a Customer Identification Program applicable to many of our businesses, and we have enhanced our Know Your Customer and Enhanced Due Diligence programs in others. We will take steps to
comply with any additional regulations or initiatives that are adopted, whether in the United States or in other jurisdictions in which we conduct business. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">Throughout 2007, the industry has seen, from a regulatory and enforcement perspective, an increased scrutiny of financial institutions&#146; compliance with AML requirements, including the requirements to report large
currency transactions and to file Suspicious Activity Reports. Likewise, the industry has seen an increased focus by regulators on how their regulated institutions manage their enterprise AML risk. Our AML compliance programs primarily consist of
risk-based policies, procedures and controls that are reasonably designed to prevent, detect and report money laundering. We have committed to our consolidated supervisor, the Office of Thrift Supervision (&#147;OTS&#148;), that we will complete our
efforts to develop and implement an enterprise-wide AML compliance program that will govern compliance throughout the American Express organization, and will ensure that each of its subsidiaries is provided with resources adequate to meet our legal
and regulatory obligations. We will report periodically on our progress to the OTS. During 2007, we entered into settlements with various regulators relating to deficiencies in our AML program, which resulted in fines and penalties totaling $65
million. For a discussion of our recent settlements relating to deficiencies in our AML program, see &#147;Legal Proceedings&#151;Other Matters&#148; below. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">In 2007, regulators in the United States and abroad continued to expand AML requirements to non-bank financial institutions and non-traditional industries and professions. In addition, several countries enacted rules
requiring that financial institutions perform &#147;enhanced due diligence&#148; when doing business with &#147;Politically Exposed Persons.&#148; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">We have significant operations in the European Union, including a number of regulated businesses. We monitor developments in EU legislation, as well as in the other markets in which we operate, to ensure that we are in a position to comply
with all applicable legal requirements, including European Union directives applicable to credit institutions, insurance intermediaries and other financial institutions. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;
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<A NAME="toc66665_8"></A>FOREIGN OPERATIONS</U> </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We derive a significant portion of our revenues from the use of our Card products,
Travelers Cheques, travel and other financial products and services in countries outside the United States and continue to broaden the use of these products and services outside the United States. (For a discussion of our revenue by geographic
region, see Note 21 to our Consolidated Financial Statements, which you can find on pages 108-110 of our 2007 Annual Report to Shareholders and which is incorporated herein by reference.) Our revenues can be affected by political and economic
conditions in these countries (including the availability of foreign exchange for the payment by the local Card issuer of obligations arising out of local Cardmembers&#146; spending outside such country, for the payment of Card bills by Cardmembers
who are billed in other than their local currency, and for the remittance of the proceeds of Travelers Cheque sales). Substantial and sudden devaluation of local Cardmembers&#146; currency can also affect their ability to make payments to the local
issuer of the Card in connection with spending outside the local country. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B></B>As a result of our foreign operations, we are exposed to
the possibility that, because of foreign exchange rate fluctuations, assets and liabilities denominated in currencies other than the U.S. dollar may be realized in amounts greater or less than the U.S. dollar amounts at which they are currently
recorded in our Consolidated Financial Statements. Examples of transactions in which this may occur include the purchase by Cardmembers of goods and services in a currency other than the currency in which they are billed; the sale in one currency of
a Travelers Cheque denominated in a second currency; and, in most instances, investments in foreign operations. These risks, unless properly monitored and managed, could have an adverse effect on our operations. For more information on how we manage
risk relating to foreign exchange, see &#147;Risk Management&#151;Market Risk Management Process&#148; on pages 51 of our 2007 Annual Report to Shareholders, which information is incorporated herein by reference.<B> </B></FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>DISCONTINUED OPERATIONS </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">On
September&nbsp;18, 2007, we entered into an agreement to sell our international banking subsidiary, American Express Bank Ltd. (&#147;AEBL&#148;), and American Express International Deposit Company (&#147;AEIDC&#148;), a subsidiary that issues
investment certificates to AEBL&#146;s customers, to Standard Chartered PLC (&#147;Standard Chartered&#148;) for the approximate value of $1.1 billion, subject to certain regulatory approvals. Standard Chartered will pay us an amount equal to the
net asset value of the AEBL businesses that are being sold at the closing date plus $300 million. At December&nbsp;31, 2007, this would have amounted to approximately $819 million. We also expect to realize an additional amount representing the net
asset value of AEIDC, which was also contracted to be sold to Standard Chartered 18 months after the close of the AEBL sale, through a put/call agreement. As of December&nbsp;31, 2007, the net asset value of that business was $232 million. This
value is expected to be realized through (1)&nbsp;dividends from the subsidiary to us and (2)&nbsp;a subsequent payment from Standard Chartered based on the net asset value of AEIDC on the date the business is transferred to them. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">For 2007 and all prior periods presented, the operating results, assets and liabilities, and cash flows of AEBL (except for certain components of AEBL
that are not being sold) have been removed from the Corporate&nbsp;&amp; Other segment and reported within the discontinued operations captions in our Consolidated Financial Statements. AEIDC will continue to be included in continuing operations
within the Corporate&nbsp;&amp; Other segment until such time as AEIDC qualifies for classification as a discontinued operation, which will occur approximately one year prior to its transfer to Standard Chartered. Beginning with the third quarter of
2007, AEIDC&#146;s investment portfolio was reclassified to Trading from Available-for-Sale due to the impact on the holding period of AEIDC&#146;s investments as a result of the related AEBL sale agreement. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">You can find more information regarding this transaction on pages 27-28 under caption &#147;Financial Review&#148; of our 2007 Annual Report to
Shareholders and in Note 2 to our Consolidated Financial Statements, appearing on page 80 of our 2007 Annual Report to Shareholders, which information is incorporated herein by reference. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>American Express Bank </I></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">American Express Bank (&#147;AEB&#148;) serves affluent and high net worth individuals and financial institutions through over 78 locations in 48 countries and regions worldwide. AEB&#146;s operations are conducted
primarily through our indirect wholly owned subsidiary, AEBL, and its subsidiaries. AEB serves financial institutions worldwide and individual clients outside the United States. AEB does not directly or indirectly do business in the United States
except as may be incidental to its activities outside the United States. The following discussion relating to AEB generally does not distinguish between U.S.- and non-U.S.-based activities. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">AEB&#146;s two primary business lines are Global Wealth Management (&#147;GWM&#148;), which incorporates The Private Bank and Financial Advisory
Services, and the Financial Institutions Group (&#147;FIG&#148;). The Private Bank focuses on delivering an extensive range of investment management, trust and estate planning and banking services to high net worth individuals. Financial Advisory
Services provides a wide variety of local, domestic saving and investment products to affluent individuals in select markets. FIG provides financial institution clients with a wide range of correspondent banking products, including international
payments processing (wire transfers and checks), trade-related payments and financing, cash management, loans, extensions of credit and investment products. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">AEB&#146;s worldwide headquarters are located in New York City. It maintains an international banking agency in New York City and Miami, Florida, and facility offices in San Francisco, San Diego and Los Angeles,
California, as well as a representative office in Atlanta, Georgia. Its wholly owned Edge Act subsidiary, American Express Bank International (&#147;AEBI&#148;), is headquartered in Miami, Florida, and has branches in New York City and Miami.
</FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>Banking Services&#151;Risks </I></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The
global nature of AEB&#146;s business activities is such that concentrations of credit to geographic regions are not unusual. AEB continually monitors and actively manages its credit concentrations to reduce the associated risk. The Private
Bank&#146;s loans are generally secured by liquid, marketable collateral. FIG controls its exposures by limiting its relationships to select banks and limiting its exposures to such banks to quantitative limits (by obligor, by country and by
exposure type) that are periodically re-evaluated; such exposures also typically carry a short-term tenure and are trade-related, which generally has a lower risk profile. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">AEB&#146;s earnings are sensitive to interest rates because the repricing of its liabilities does not, generally, match the repricing of its assets. AEB
invests deposits in excess of loans and the proceeds of investment certificates in highly-rated investment securities. It maintains mandatory investment portfolios in a number of countries as required by central banks. AEB monitors and controls its
assets-liability mismatches both on a country and global level through a rigorous Earnings at Risk process and manages the mismatch of assets and liabilities by adjusting the repricing frequency of its investments or by using derivatives.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">AEB sells foreign exchange, interest rate and equity products to its customer base and may decide to take short-term proprietary trading
positions as a result of this business. The foreign exchange, interest rate and equity risk is managed at the branch and global level through a comprehensive Value at Risk process. AEB manages counterparty credit exposure on foreign exchange and
interest rate derivatives through a dynamic mark-to-market and potential future exposure process, in which the current fair value and potential future exposure are calculated and managed against counterparty loan equivalent limits. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B></B>Because AEB conducts significant business in emerging market countries and in countries that are less politically and economically stable than the
United States or those in Western Europe, its Private Banking, Financial Advisory Services and FIG activities may be subject to greater credit and compliance risks than are found in more well-developed jurisdictions. AEB continually monitors its
exposures in such jurisdictions, and regularly evaluates its client base to identify potential legal risks as a result of clients&#146; use of AEB&#146;s banking services. <B> </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>Banking Services&#151;Competition </I></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">The banking services of AEB are subject to vigorous competition everywhere AEB operates. Competitors include local and international banks whose assets often exceed those of AEB, other financial institutions and, in
certain cases, governmental agencies. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>Banking Services&#151;Regulation </I></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">American Express Banking Corp. (&#147;AEBC&#148;) is a New York investment company organized under Article XII of the New York Banking Law and is a wholly
owned direct subsidiary of American Express. AEBL is a wholly owned direct subsidiary of AEBC. AEBC, AEBL and AEBL&#146;s global network of offices and subsidiaries are subject to continuous supervision and examination by the New York State Banking
Department (&#147;NYSBD&#148;) pursuant to the New York Banking Law. AEBC does not directly engage in banking activities. AEBL&#146;s branches, representative offices and subsidiaries are licensed and regulated in the jurisdictions in which they do
business and are subject to the same local requirements as other competitors that have the same license. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Since AEBC and AEBL do not do
business in the United States, except as may be incidental to their activities outside the United States, our affiliation with AEBC and AEBL does not require us to register as a bank holding company under Regulation Y promulgated by the Board of
Governors of the Federal Reserve System (&#147;Federal Reserve Board&#148;). AEBC and AEBL are not members of the Federal Reserve System, are not subject to supervision by the FDIC, and are not subject to any of the restrictions imposed by the
Competitive Equality Banking Act of 1987 other than anti-tying rules with respect to transactions involving products and services of certain of its affiliates. AEBC and AEBL are not financial holding companies under the Gramm-Leach-Bliley Act.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The NYSBD requires AEBC, on a consolidated basis, to monitor its financial condition and maintain risk-based and leverage capital in
accordance with minimum thresholds established by the NYSBD. At year-end 2007, AEB had Tier One, Total and Leverage capital (as those terms are defined under the Federal Reserve Board&#146;s risk-based capital guidelines) that exceeded the minimum
standards established by the NYSBD. Additionally, AEB is not required to comply on a consolidated basis with the Advanced Internal Ratings Based Approach incorporated in the Basel II Capital Accord Framework published in June 2004. AEB monitors
developments with respect to the implementation of the Basel II Capital Accord in jurisdictions where its branch and subsidiary network is located. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">Immediately prior to the sale of AEBL to Standard Chartered as discussed above AEBL will transfer to AEBC its banking business in Greece and Card and related businesses in India. Following the sale, AEBC will directly own and operate these
businesses. AEBC will continue to be regulated by the NYSBD in a manner similar to the regulation described above. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In recent years, U.S.
and foreign regulatory authorities, together with international organizations, have raised increasing concerns over the ability of criminal organizations and corrupt persons to use global financial intermediaries to facilitate money laundering. In
the United States, the Secretary of the Treasury has issued regulations pursuant to the Patriot Act that specifically impact certain money laundering prevention activities of entities involved, as AEBL is, in correspondent and private banking
activities. Compliance efforts to combat money laundering remain a high priority for AEBL, and it has increased its efforts to address evolving regulatory and supervisory standards and requirements in jurisdictions in which it does business. For a
further discussion of anti-money laundering regulation and our recent settlement relating to deficiencies in our anti-money laundering program, see &#147;Regulation&#151;General&#148; within &#147;Corporate&nbsp;&amp; Other&#148; above and
&#147;Legal Proceedings&#151;Other Matters&#148; below. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_9"></A>SEGMENT INFORMATION AND CLASSES OF SIMILAR SERVICES </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">You can find information regarding the Company&#146;s
reportable operating segments, geographic operations and classes of similar services in Note 21 to our Consolidated Financial Statements, which appears on pages 108-110 of our 2007 Annual Report to Shareholders, which Note is incorporated herein by
reference. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<A NAME="toc66665_10"></A>EXECUTIVE OFFICERS OF THE COMPANY </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Set forth below is a list of all our executive officers as of February 28,
2008. None of our executive officers has any family relationship with any other executive officer, and none of our executive officers became an officer pursuant to any arrangement or understanding with any other person. Each executive officer has
been elected to serve until the next annual election of officers or until his or her successor is elected and qualified. Each officer&#146;s age is indicated by the number in parentheses next to his or her name. </FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">KENNETH&nbsp;I.&nbsp;CHENAULT&nbsp;-</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Chairman and Chief Executive Officer</FONT></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"> <P STYLE="text-indent:2.00em"><FONT FACE="Times New Roman" SIZE="2">Mr.&nbsp;Chenault (56)&nbsp;has been Chairman since April 2001 and Chief Executive Officer since January 2001. </FONT></P></TD></TR>
<TR>
<TD HEIGHT="13"></TD>
<TD HEIGHT="13" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">L.&nbsp;KEVIN&nbsp;COX&nbsp;-</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Executive Vice President, Human Resources</FONT></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"> <P STYLE="text-indent:2.00em"><FONT FACE="Times New Roman" SIZE="2">Mr.&nbsp;Cox (44)&nbsp;has been Executive Vice President, Human Resources of the Company since April 2005. Prior thereto, he had been Executive Vice
President of The Pepsi Bottling Group since September 2004. Prior thereto, he had been Senior Vice President, Human Resources of such company since March 1999.</FONT></P></TD></TR>
<TR>
<TD HEIGHT="13"></TD>
<TD HEIGHT="13" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">EDWARD&nbsp;P.&nbsp;GILLIGAN&nbsp;-</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Vice Chairman</FONT></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"> <P STYLE="text-indent:2.00em"><FONT FACE="Times New Roman" SIZE="2">Mr.&nbsp;Gilligan (48)&nbsp;has been Vice Chairman of the Company and head of the Company&#146;s Global Business-to-Business Group since July 2007.
Prior thereto, he had been Group President, American Express International&nbsp;&amp; Global Corporate Services since July 2005. Prior thereto, he had been Group President, Global Corporate Services since June 2000 and Group President, Global
Corporate Services&nbsp;&amp; International Payments, since July 2003.</FONT></P></TD></TR>
<TR>
<TD HEIGHT="13"></TD>
<TD HEIGHT="13" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">ASHWINI&nbsp;GUPTA&nbsp;-</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Executive Vice President, Chief Risk Officer and President of Risk, Information Management and Banking</FONT></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"> <P STYLE="text-indent:2.00em"><FONT FACE="Times New Roman" SIZE="2">Mr.&nbsp;Gupta (54)&nbsp;has been Executive Vice President, Chief Risk Officer and President of Risk, Information Management and Banking since July
2007. Prior thereto, he had been Executive Vice President and Chief Risk Officer of the Company since July 2003.</FONT></P></TD></TR>
<TR>
<TD HEIGHT="13"></TD>
<TD HEIGHT="13" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">JOHN&nbsp;D.&nbsp;HAYES&nbsp;-</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Executive Vice President, Global Advertising and Brand Management and Chief Marketing Officer</FONT></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"> <P STYLE="text-indent:2.00em"><FONT FACE="Times New Roman" SIZE="2">Mr.&nbsp;Hayes (53)&nbsp;has been Executive Vice President, Global Advertising and Brand Management since May 1995 and Chief Marketing Officer of the
Company since August 2003.</FONT></P></TD></TR>
<TR>
<TD HEIGHT="13"></TD>
<TD HEIGHT="13" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">DANIEL&nbsp;T.&nbsp;HENRY&nbsp;-</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Executive Vice President and Chief Financial Officer</FONT></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"> <P STYLE="text-indent:2.00em"><FONT FACE="Times New Roman" SIZE="2">Mr.&nbsp;Henry (58)&nbsp;has been Executive Vice President and Chief Financial Officer of the Company since October 2007. Since February 2007,
Mr.&nbsp;Henry had been serving as Executive Vice President and Acting Chief Financial Officer of the Company. Prior thereto, he had been Executive Vice President and Chief Financial Officer, U.S. Consumer, Small Business and Merchant Services since
October 2005 and Executive Vice President and Chief Financial Officer, U.S. Consumer and Small Business Services since August 2000.</FONT></P></TD></TR>
<TR>
<TD HEIGHT="13"></TD>
<TD HEIGHT="13" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">ALFRED&nbsp;F.&nbsp;KELLY,&nbsp;JR.&nbsp;-</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">President</FONT></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"> <P STYLE="text-indent:2.00em"><FONT FACE="Times New Roman" SIZE="2">Mr.&nbsp;Kelly (49)&nbsp;has been President of the Company and head of the Company&#146;s Global Consumer Group since July 2007. Prior thereto, he was
Group President, Consumer, Small Business and Merchant Services since October 2005. Prior thereto, he had been President, U.S. Consumer and Small Business Services since June 2000.</FONT></P></TD></TR>
</TABLE> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">JUDSON&nbsp;C.&nbsp;LINVILLE&nbsp;-</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">President and Chief Executive Officer, U.S. Consumer Services.</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Mr.&nbsp;Linville (50)&nbsp;has been President and Chief Executive Officer of U.S. Consumer
Services, since July 2007. Prior thereto, he had been President, U.S. Consumer Card Services Group from 2005 through 2007. Prior thereto, he was Executive Vice President, Service Delivery Network from 2001 through 2005. </FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">LOUISE&nbsp;M.&nbsp;PARENT&nbsp;-</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Executive Vice President and General Counsel</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Ms.&nbsp;Parent (57)&nbsp;has been Executive Vice President and General Counsel since May 1993.
</FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">THOMAS&nbsp;SCHICK&nbsp;-</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Executive Vice President, Corporate Affairs and Communications</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Mr.&nbsp;Schick (61)&nbsp;has been Executive Vice President, Corporate Affairs and Communications
since March 1993. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="72%"></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">STEPHEN&nbsp;SQUERI&nbsp;-</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Executive Vice President and Chief Information Officer</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Mr.&nbsp;Squeri (48)&nbsp;has been Executive Vice President and Chief Information Officer since
May 2005. Prior thereto, he had been President, Global Commercial Card &#150; Global Corporate Services since January 2002. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_11"></A>EMPLOYEES </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We had approximately 67,700 employees on December&nbsp;31, 2007. </FONT></P> <P
STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="9%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_12"></A>ITEM&nbsp;1A.&nbsp;&nbsp;&nbsp;&nbsp;RISK</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>FACTORS </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">This section highlights specific risks
that could affect our Company and its businesses. You should carefully consider each of the following risks and all of the other information set forth in this Annual Report on Form 10-K. Based on the information currently known to us, we believe
that the following information identifies the most significant risk factors affecting our Company. However, the risks and uncertainties our Company faces are not limited to those described below. Additional risks and uncertainties not presently
known to us or that we currently believe to be immaterial may also adversely affect our business. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">If any of the following risks and
uncertainties develops into actual events or the circumstances described in the risks and uncertainties occur, these events or circumstances could have a material adverse effect on our business, financial condition or results of operations. These
events could also have a negative effect on the trading price of our securities. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B><I>Our operating results may suffer because of
substantial and increasingly intense competition worldwide in the payments industry. </I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The payments industry is highly competitive
and includes, in addition to charge and credit card networks, evolving alternative payment mechanisms and systems. We are the third largest general purpose charge and credit card network based on charge volume, behind Visa and MasterCard, which are
larger than we are in most markets. As a result, other card issuers may be able to benefit from the strong position and marketing and pricing power of Visa and MasterCard. Because of continuing consolidations among banking and financial services
companies and credit card portfolio acquisitions by major card issuers, there are now a smaller number of significant issuers. The largest competing issuers have continued to grow, in several cases by acquiring card portfolios, and also by
cross-selling through their retail branch networks, and competition among all issuers remains intense. We are also subject to increasing pricing pressure from our competitors. In addition, some of our competitors have developed, or may develop,
substantially greater financial and other resources than we have, may offer a wider range of programs and services than we offer or may use more effective advertising and marketing strategies to achieve broader brand recognition or merchant
acceptance than we have. We may not continue to be able to compete effectively against these threats. In addition, our competitors may be more efficient in introducing innovative products, programs and services than we are. As a result, our revenue
or profitability may decline. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B><I>We face increasingly intense competitive pressure that may impact the prices we charge merchants
who accept our cards for payment for goods and services. </I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Unlike our competitors in the payments industry that rely on high
revolving credit balances to drive profits, our business model is focused on Cardmember spending. Discount revenue, which represents fees charged to merchants when Cardmembers use their Cards to purchase goods and services on our network, is
primarily driven by billed business volumes and is our largest single revenue source. In recent years, we have been under market pressure to reduce merchant discount rates and undertake other repricing initiatives. This pressure arises, in part, due
to the regulatory pressure on our competitors outside the United States, which has been increasing. If we continue to experience a decline in the average merchant discount rate we charge merchants or are unable to sustain premium merchant discount
rates on our Cards without experiencing overall volume growth or an increase in merchant coverage, our revenues and profitability could be materially and adversely affected. </FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B><I>We may not be able to increase consumer and business spending and borrowing on our payment services products or manage the costs of our Cardmember
benefits intended to stimulate such use. </I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Our business is characterized by the high level of spending by our Cardmembers. Increasing
consumer and business spending and borrowing on our payment services products, particularly credit and charge Cards and Travelers Cheques and other prepaid products, and growth in Card lending balances, depend in part on our ability to develop and
issue new or enhanced Card and prepaid products and increase revenues from such products. It also depends on our ability to attract new Cardmembers, reduce Cardmember attrition, increase merchant coverage, and capture a greater share of
customers&#146; total spending on Cards issued on our network, both in the United States and in our international operations. One of the ways in which we attract new Cardmembers is through our Membership Rewards program, as well as other Cardmember
benefits. We may not be able to cost effectively manage and expand Cardmember benefits, including containing the growth of marketing, promotion and rewards expenses and Cardmember services expenses. In addition, many credit card issuers have
instituted rewards programs that are similar to ours, and issuers may in the future institute rewards programs that are more attractive to cardmembers than our programs. If we are not successful in increasing consumer and business spending or in
managing the costs of our Cardmember benefits, our revenues and profitability could be negatively affected. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B><I>Our brand and reputation
are key assets of our Company and our business may be affected by how we are perceived in the marketplace.</I></B> </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Our brand and its
attributes are key assets of the Company. Our ability to attract and retain consumer Cardmembers and corporate clients is highly dependent upon the external perceptions of our level of service, business practices and financial condition. Negative
perceptions or publicity regarding these matters could damage our reputation among existing and potential Cardmembers and corporate clients, which could make it difficult for us to attract new Cardmembers and maintain existing ones. Adverse
developments with respect to our industry may also, by association, negatively impact our reputation, or result in greater regulatory or legislative scrutiny or litigation against us. Although we monitor developments for areas of potential risk to
our reputation and brand, negative perceptions or publicity could materially and adversely affect our revenues and profitability. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B><I>An
increase in account data breaches and fraudulent activity using our Cards could lead to reputational damage to our brand and could reduce the use and acceptance of our charge and credit Cards. </I></B></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We and other third parties store Cardmember account information in connection with our charge and credit Cards. Criminals are using increasingly
sophisticated methods to capture various types of information relating to Cardmembers&#146; accounts, including Membership Rewards accounts, to engage in illegal activities such as fraud and identity theft. As outsourcing and specialization become a
more acceptable and common way of doing business in the payments industry, there are more third parties involved in processing transactions using our Cards. If data breaches or fraud levels involving our Cards were to rise, it could lead to
regulatory intervention </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<FONT FACE="Times New Roman" SIZE="2">(such as mandatory card reissuance) and reputational and financial damage to our brand, which could reduce the use and acceptance of our Cards, and have a
material adverse impact on our business. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B><I>Global economic, political and other conditions may adversely affect trends in consumer
spending and in travel</I></B><I>.</I><B><I> </I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Our business depends heavily upon the overall level of spending using our credit and
charge Cards, and we are not insulated from the effects of economic cycles. A sustained deterioration in general economic conditions, particularly in the United States or Europe, or increases in interest rates in key countries in which we operate,
may adversely affect our financial performance by reducing the number or average purchase amount of transactions involving our charge and credit Cards and result in increasing delinquencies and credit losses. Political or economic instability in
certain regions or countries could also affect our commercial or other lending activities, among other businesses, or result in restrictions on convertibility of certain currencies. In addition, our travel network may be adversely affected by world
geopolitical and other conditions. Travel expenditures are sensitive to business and personal discretionary spending levels and tend to decline during general economic downturns. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Terrorist attacks, natural disasters or other catastrophic events may have a negative effect on our business. Because of our proximity to the World Trade
Center, our headquarters were damaged as a result of the terrorist attacks of September&nbsp;11, 2001. Similar events or other disasters or catastrophic events in the future could have a negative effect on our businesses and infrastructure,
including our information technology systems. Because we derive a portion of our revenues from travel-related spending, our business will be sensitive to safety concerns, and thus may decline during periods in which travelers become concerned about
safety issues or when travel might involve health-related risks. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B><I>We have agreements with business partners in a variety of
industries, including the airline industry, that represent a significant portion of our billed business. We are exposed to the risk of downturns in these industries, including bankruptcies, restructurings and consolidations of our partners, and the
possible obligation to make payments to our partners. </I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In the ordinary course of our business we enter into different types of
contractual arrangements with business partners in a variety of industries. For example, we have partnered with Costco to offer co-branded cards for consumers and small businesses, and through our Membership Rewards program we have partnered with
businesses in many industries, most notably the airline industry, to offer benefits to Cardmember participants. The airline industry represents a significant portion of our billed business and in recent years has undergone bankruptcies,
restructurings, consolidations and other similar events. In addition, under some types of these contractual arrangements, upon the occurrence of certain triggering events, we may be obligated </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">to make payments to certain co-brand partners, merchants, vendors and customers. If we are not able to effectively manage the triggering events, we could unexpectedly
have to make payments to these partners, which could have a negative effect on our financial condition and results of operations. We are also exposed to risk from bankruptcies, restructurings, consolidations and other similar events that may occur
in any industry representing a significant portion of our billed business, which could negatively impact particular card products and services (and billed business generally) and our financial condition and results of operations. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Many industry analysts and some carriers have indicated that there could be significant consolidation in the airline industry in 2008, particularly in
the United States. We would not expect consolidation to have any significant effect on our merchant relationships with the airlines. However, airlines are also some of the most important and valuable partners in our Membership Rewards program. If a
participating airline merged with an airline that did not participate in Membership Rewards, the combined airline would have to determine whether or not to continue participation. Similarly, if one of our co-brand airline partners merged with an
airline that had a competing co-brand card, the combined airline would have to determine which co-brand cards it would offer. If a surviving airline determined to withdraw from Membership Rewards or to cease offering an American Express </FONT>
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<FONT FACE="Times New Roman" SIZE="2">co-brand card, our business could be adversely affected. For additional information relating to the agreements with Delta and general risks related to the
airline industry, see &#147;Financial Review&#151;Exposure to Airline Industry&#148; on page 61 of our 2007 Annual Report to Shareholders. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2"><B><I>Our reengineering and other cost control initiatives may not prove successful, and we may not realize all or a significant portion of the benefits that we intended.</I></B> </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We have regularly undertaken, and are currently considering undertaking, a variety of efforts to reengineer our business operations in order to achieve
cost savings and other benefits (including the reinvestment of such savings in key areas such as marketing, promotion and rewards), enhance revenue-generating opportunities and improve our operating expense to revenue ratio both in the short-term
and over time. These efforts include cost management, structural and strategic measures such as vendor, process, facilities and operations consolidation, outsourcing functions (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 these reengineering actions. If we do not successfully achieve these efforts in a
timely manner or if we are not able to capitalize on these efforts, we may not realize all or a significant portion of the benefits that we intended. Failure to achieve these benefits could have a negative effect on our financial condition and
results of operations. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B></B><B><I>Our risk management policies and procedures may not be effective.</I></B><B> </B></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We must effectively manage credit risk related to consumer debt, business loans, settlement risk with regard to GNS partners, merchant bankruptcies, the
rate of bankruptcies, and other credit trends which can affect spending on card products, debt payments by individual and corporate customers and businesses that accept our card products. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Credit risk is the risk of loss from obligor or counterparty default. We are exposed to both consumer credit risk, principally from Cardmember
receivables and our other consumer lending activities, and institutional credit risk from merchants and GNS partners. While consumer credit risk is more closely linked to general economic conditions than borrower-specific events like institutional
credit risk, both expose us to a risk of loss. Third parties may default on their obligations to us due to bankruptcy, lack of liquidity, operational failure or other reasons. Country, regional and political risks are components of credit risk.
Rising delinquencies and rising rates of bankruptcy are often precursors of future write-offs and may require us to increase our reserve for loan losses. Higher write-off rates and an increase in our reserve for loan losses may adversely affect our
profitability and the performance of our securitizations, and may increase our cost of funds. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Although we make estimates to provide for
credit losses in our outstanding portfolio of loans and receivables, these estimates may not be accurate. In addition, the information that we use in managing our credit risk may be inaccurate or incomplete. Although we regularly review our credit
exposure to specific clients and counterparties and to specific industries, countries and regions that we believe may present credit concerns, default risk may arise from events or circumstances that are difficult to foresee or detect, such as
fraud. We may also fail to receive full information with respect to the credit risks of our customers. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We must also effectively manage
market risk to which we are exposed. Market risk represents the loss in value of portfolios and financial instruments due to adverse changes in market variables. We are exposed to market risk from interest rates in our Card business. Changes in the
interest rates at which we borrow and lend money affect the value of our assets and liabilities. If the rate of interest we pay on our borrowings increases more than the rate of interest we earn on our loans, our net finance charge revenue, and
consequently our net income, could fall. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We must also accurately estimate the fair value of the assets in our investment portfolio and, in
particular, those investments that are not readily marketable, including the valuation of the interest-only strip (commonly referred to as the I/O strip) arising from our securitization of credit Card receivables. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Additionally, we must also effectively manage liquidity risk to which we are exposed. Liquidity risk is defined as the inability to access cash and
equivalents needed to meet business requirements and satisfy our obligations. If we are unsuccessful in managing our liquidity risk, we may maintain too much liquidity, which can be costly and limit financial flexibility, or we may be too illiquid,
which could result in financial distress during a liquidity event. For additional information regarding our management of liquidity risk, see &#147;<I>Our access to financing, including securitizations, may be limited</I>&nbsp;&#148; below.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Finally, we must also manage the operational risks to which we are exposed. We consider operational risk to be the risk of not achieving
our business objectives due to failed processes, people or information systems, or from the external environment, such as natural disasters. Operational risks include the risk that we may not comply with specific regulatory or legal requirements,
exposing us to fines and/or penalties and possibly brand damage; employee error or intentional misconduct that results in a material financial misstatement; or a failure to monitor an outsource partner&#146;s compliance with a service level
agreement, resulting in economic harm to us. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Although we have devoted significant resources to develop our risk management policies and
procedures and expect to continue to do so in the future, our hedging strategies and other risk management techniques may not be fully effective. See <B>&#147;</B>Financial Review&#151;Risk Management&#148; on pages<B> </B>49-52 of our 2007 Annual
Report to Shareholders for a discussion of the policies and procedures we use to identify, monitor and manage the risks we assume in conducting our businesses. Management of credit, market and operational risk requires, among other things, policies
and procedures to record properly and verify a large number of transactions and events, and these policies and procedures may not be fully effective. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2"><B><I>Adverse currency fluctuations and foreign exchange controls could decrease revenue we receive from our international operations. </I></B></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">During 2007, over 30% of our revenue net of interest expense was generated from activities outside the United States. We are exposed to foreign exchange
risk from our international operations, and some of the revenue we generate outside the United States is subject to unpredictable and indeterminate fluctuations if the values of other currencies change relative to the U.S. dollar. Resulting exchange
gains and losses are included in our net income. Furthermore, we may become subject to exchange control regulations that might restrict or prohibit the conversion of our other revenue currencies into U.S. dollars. The occurrence of any of these
events or circumstances could decrease the revenues we receive from our international operations and have a material adverse effect on our business. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2"><B></B><B><I>Our access to financing, including securitizations, may be limited.</I></B><B> </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In general,
the amount, type and cost of our funding, including financing from other financial institutions and the capital markets, directly impacts our expense in operating our business and growing our assets and therefore, can positively or negatively affect
our financial results. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">A number of factors could make such financing more difficult, more expensive or unavailable on any terms both
domestically and internationally (where funding transactions may be on terms more or less favorable than in the United States), including, but not limited to, financial results and losses, changes within our organization, specific events that
adversely impact our reputation, changes in the activities of our business partners, disruptions in the capital markets, specific events that adversely impact the financial services industry, counter-party availability, changes affecting our assets,
our corporate and regulatory structure, interest rate fluctuations, ratings agencies&#146; actions, general economic conditions and the legal, regulatory, accounting and tax environments governing our funding transactions. Our ability to raise funds
is strongly affected by the general state of the </FONT>
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<FONT FACE="Times New Roman" SIZE="2">United States and world economies, and may become increasingly difficult due to economic and other factors. Also, we compete for funding with other financial
institutions, some of which are publicly traded. Competition from these institutions may increase our cost of funds. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In addition, we
periodically securitize Cardmember receivables and loans arising from our Card business. Securitization involves the legal sale of beneficial interests in Cardmember receivables and loan balances to a trust, which in turn issues securities to
third-party investors collateralized by the transferred receivables and loans, and our receipt of the proceeds from the issuance of such securities. Although the markets for securitized credit and charge card receivables and loans is large and
well-established, if these markets experience difficulties, we may be unable to securitize our receivables or to do so at favorable pricing levels. If we were </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2">unable to continue to securitize our loan receivables at desired levels, we would use alternative funding sources to meet our liquidity needs. If we were unable to find cost-effective and stable alternatives, it could negatively impact our
liquidity and potentially subject us to certain risks. These risks would include an increase in our cost of funds, an increase in the allowance for loan losses and the provision for possible credit losses as more loans would remain on our
consolidated balance sheet, and lower loan growth. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In addition, the occurrence of certain events may cause the securitization transactions
to amortize earlier than scheduled, which would accelerate the need for an alternate source of funding. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">For a further discussion of our
liquidity and funding needs, see &#147;Financial Review&#150;Funding Programs&#148; on pages 43-48 in our 2007 Annual Report to Shareholders. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2"><B><I>If we are not able to protect our intellectual property, and invest successfully in, and compete at the leading edge of, technological developments across all our businesses, our revenue and profitability could be negatively affected.
</I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Our industry is subject to rapid and significant technological changes. In order to compete in our industry, we need to continue to
invest in business process and technology advances across all areas of our business, including in transaction processing, data management, customer interactions and communications, travel reservations systems, prepaid products, alternative payment
mechanisms and risk management and compliance systems. We rely in part on third parties, including some of our competitors and potential competitors, for the development of and access to new technologies. We expect that new technologies applicable
to the payments industry will continue to emerge, and these new technologies may be superior to, or render obsolete, the technologies we currently use in our Cards, networks and other services. Our ability to develop, acquire, or access competitive
technologies or business processes on acceptable terms may be limited by patent rights that third parties, including competitors and potential competitors, may assert. In addition, our ability to adopt new technologies that we develop may be
inhibited by a need for industry-wide standards or by resistance from Cardmembers or merchants to such changes. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We rely on a variety of
measures to protect our intellectual property and proprietary information, including copyrights, trademarks, patents and controls on access and distribution. These measures may not prevent misappropriation or infringement of our intellectual
property or proprietary information and a resulting loss of competitive advantage. In addition, competitors or other third parties may allege that our systems, processes or technologies infringe their intellectual property rights. Given the complex,
rapidly changing and competitive technological and business environment in which we operate and the potential risks and uncertainties of intellectual property related litigation, we cannot assure you that a future assertion of an infringement claim
against us will not cause us to lose significant revenues, incur significant license, royalty or technology development expenses, or pay significant monetary damages. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B><I>Banks, card issuers and card network operators generally are the subject of increasing global
regulatory focus, which may impose costly new compliance burdens on our company and lead to decreased transaction volumes and revenues through our network. </I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">We are subject to regulations that affect banks and the payments industry in the many countries in which our charge and credit Cards are used and where we conduct banking and Card activities. In particular, we are
subject to numerous regulations applicable to financial institutions in the United States and abroad. We are also subject to regulations as a provider of services to financial institutions. Regulation of the payments industry has increased
significantly in recent years. For example, we are subject to the regulatory requirements of the Patriot Act, which substantially broadened existing anti-money laundering legislation and the extraterritorial jurisdiction of the United States. The
Patriot Act requires us to create and implement comprehensive anti-money laundering programs that meet certain standards, including expanded reporting and enhanced information gathering and record-keeping requirements, as well as to perform due
diligence on the third party institutions that issue Cards and/or acquire merchants on our network. Increased regulatory focus in this area could result in additional obligations or restrictions with respect to the types of products and services
that we may offer to consumers, the countries in which our charge and credit Cards may be used, and the types of cardholders and merchants who can obtain or accept our charge and credit Cards. In addition, the European Union has adopted a new
legislative directive for electronic payment services, including cards, that will put in place a common legal framework for licensing and supervision of payment services providers, including card issuers and merchant acquirers, and for their conduct
of business. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The U.S. Congress is also presently considering, or may consider, legislative initiatives in the area of Internet
transactions, such as Internet prescription drug purchases and copyright and trademark infringement, among others, that could impose additional compliance burdens on our Company, for example, imposing requirements aimed at preventing the use of
payment cards to unlawfully purchase prescription drugs over the Internet.<B> </B>Federal and state law enforcement authorities have also contacted payment companies concerning these issues. If implemented, these initiatives may require us to
monitor, filter, restrict, or otherwise oversee various categories of charge and credit card transactions, thereby increasing our costs or decreasing our transaction volumes. Various regulatory agencies and legislatures are also considering
regulations covering identity theft, account management guidelines, disclosure rules, security, and marketing that would impact us directly, in part due to increased scrutiny of our underwriting standards. These new requirements may restrict our
ability to issue charge and credit cards or partner with other financial institutions, which could decrease our transaction volumes. In some circumstances, new regulations could have the effect of limiting our ability to offer new types of charge or
credit cards or restricting our ability to offer existing Cards, such as stored value cards, which could materially and adversely reduce our revenues and revenue growth. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">In recent years, regulators in several countries outside the United States have focused on the fees involved in the operation of card networks, including the fees merchants are charged to accept cards. Regulators in
the United Kingdom, Poland, Germany, Spain, Hungary, the European Union (EU), Australia, Mexico, and Switzerland, among others, have conducted investigations into the way bankcard network members collectively set the &#147;interchange,&#148; which
is the fee paid by the bankcard merchant acquirer to the card issuing bank in &#147;four-party&#148; payment networks, like Visa and MasterCard. The interchange fee is generally the largest component of the merchant service charge charged to
merchants for bankcard debit and credit charges in these systems. By contrast, the American Express network does not have collectively-set interchange fees.<B> </B>Although the regulators&#146; focus has primarily been on Visa and MasterCard as the
dominant card networks and their operations on a multilateral basis, antitrust actions and government regulation of the bankcard associations&#146; pricing could ultimately affect all networks. Lower interchange and/or merchant discount revenue may
lead card issuers to look for other sources of revenue such as higher annual card fees and interest charges, as well as to reduce costs by scaling back or eliminating rewards programs. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In certain countries where antitrust actions or regulations have led our competitors to lower their fees, we have made adjustments to our pricing to
merchants to reflect local competitive trends. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In the United States, the Board of Governors of the Federal Reserve System and various Federal Reserve
Banks have been following developments on interchange and have held several conferences focused on interchange rates. While the Federal Reserve has expressed interest in monitoring this issue, it has not indicated the need to regulate interchange
rates in the United States. In Congress, there have been several hearings on Visa/MasterCard interchange over the last two years, and at the request of Congress, the Government Accountability Office undertook a study of the cost of credit card
acceptance to federal agencies. During 2007, there were also a number of bills proposed in individual state legislatures seeking to impose caps on credit card interchange or to prohibit card companies from charging merchant discount on the state tax
portion of credit card purchases. Other proposals were aimed at increasing the transparency of card network rules for merchants. In addition, a number of bills were proposed to establish merchant liability for the costs of a data security breach of
a merchant&#146;s system or require merchants to adopt technical safeguards to protect sensitive card holder payment information. It is expected that Congressional hearings and similar proposed state legislation will continue during 2008. It is
possible that some of these proposals could surface at the federal level as well. In the event that governmental or regulatory activity to limit interchange or merchant fees continues or increases, or state data security legislation is adopted, our
revenues and profitability could be adversely affected. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Regulators and Congress are continuing their scrutiny of our industry&#146;s
pricing, finance charges and practices relating to its customers, including increases in APRs and fees. Any legislative or regulatory restrictions on our ability to price our services and manage our business practices freely could materially and
adversely affect our transaction volume and revenues. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Increased regulatory focus on our Company, such as in connection with the matters
discussed above, may increase our compliance costs or result in a reduction of transactions processed on our networks or merchant discount revenues from such transactions, which could materially and adversely impact our financial performance.
</FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B><I>Regulation in the areas of consumer privacy, data use and security could increase our costs and decrease the number of charge and
credit cards issued. </I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We are also subject to regulations related to privacy and data use and security in the jurisdictions in which
we do business, and we could be negatively impacted by these regulations. For example, in the United States, we are subject to the Federal Trade Commission&#146;s information safeguards rule under the Gramm-Leach-Bliley Act. The rule requires that
each financial institution develop, implement and maintain a written, comprehensive information security program containing safeguards that are appropriate to the financial institution&#146;s size and complexity, the nature and scope of the
financial institution&#146;s activities, and the sensitivity of any customer information at issue. The heightened legislative and regulatory focus on data security, including requiring consumer notification in the event of a data breach, continues.
In the United States, there are a number of bills pending in Congress and there have been several Congressional hearings to address these issues. Congress will likely consider data security/data breach legislation in 2008 that, if implemented, could
affect us. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In addition, approximately 38 states, Puerto Rico and the District of Columbia have enacted security breach legislation,
requiring varying levels of consumer notification in the event of a security breach, and several other states are considering similar legislation. In addition, several states are considering legislation requiring certain data security standards that
could result in higher technology costs for the Company. In 1995, the European Parliament and Council passed European Directive 95/46/EC on the protection of individuals with regard to the processing of personal data and on the free movement of such
data (commonly referred to as the Data Protection Directive), which obligates the controller of an individual&#146;s personal data to take the necessary technical and organizational measures to protect personal data. The Data Protection Directive
has been implemented through local laws regulating data protection in European Union Member States. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Regulation of privacy, data use and
security may materially increase our costs and may decrease the number of our cards that we issue, or restrict our ability to fully exploit our closed loop capability, which could materially </FONT>
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<FONT FACE="Times New Roman" SIZE="2">and adversely affect our profitability. Our failure to comply with the privacy and data use and security laws and regulations to which we are subject could
result in fines, sanctions and damage to our global reputation and our brand. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B><I>If our global network systems are disrupted or we are
unable to process transactions efficiently or at all, our revenue or profitability would be materially reduced. </I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Our transaction
authorization, clearing and settlement systems may experience service interruptions as a result of fire, natural disasters, power loss, disruptions in long distance or local telecommunications access, fraud, terrorism or accident. A natural disaster
or other problem at our facilities could interrupt our services. Additionally, we rely on third-party service providers for the timely transmission of information across our global network. If a service provider fails to provide the communications
capacity or services we require, as a result of natural disaster, operational disruption, terrorism or any other reason, the failure could interrupt our services, adversely affect the perception of our brands&#146; reliability and materially reduce
our revenue or profitability. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B><I>We rely on third-party providers of various computer systems and other services integral to the
operations of our businesses. These third parties may act in ways that could harm our business. </I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We operate a service network around
the world. In order to achieve cost and operational efficiencies, we outsource to third party vendors many of the computer systems and other services that are integral to the operations of our global businesses. A significant amount of this
outsourcing occurs in developing countries. We are subject to the risk that certain decisions are subject to the control of our third-party service providers and that these decisions may adversely affect our activities. In addition, the management
of multiple third-party vendors increases our operational complexity and decreases our control. It is also possible that the cost efficiencies of certain outsourcings will decrease as the demand for these services increases around the world.
</FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Special Note About Forward-Looking Statements </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">We have made various statements in this report that may constitute &#147;forward-looking statements&#148; within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may also be made in our other
reports filed with or furnished to the SEC, in our press releases and in other documents. In addition, from time to time, we, through our management, may make oral forward-looking statements. Forward-looking statements are subject to risks and
uncertainties, including those identified above, which could cause actual results to differ materially from such statements. The words &#147;believe,&#148; &#147;expect,&#148; &#147;anticipate,&#148; &#147;optimistic,&#148; &#147;intend,&#148;
&#147;plan,&#148; &#147;aim,&#148; &#147;will,&#148; &#147;may,&#148; &#147;should,&#148; &#147;could,&#148; &#147;would,&#148; &#147;likely&#148; and similar expressions are intended to identify forward-looking statements. We caution you that the
risk factors described above are not exclusive. There may also be other risks that we are unable to predict at this time that may cause actual results to differ materially from those in 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. We undertake no obligation to update publicly or revise any forward-looking statements. </FONT></P> <P
STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<A NAME="toc66665_13"></A>ITEM&nbsp;1B.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>UNRESOLVED STAFF COMMENTS </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Not applicable.
</FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<A NAME="toc66665_14"></A>ITEM&nbsp;2.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>PROPERTIES </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Our principal executive offices are in
a 51-story, 2.2&nbsp;million square foot building located in lower Manhattan. This building, which is on land leased from the Battery Park City Authority for a term expiring in 2069, is one of four office buildings in a complex known as the World
Financial Center. We have a 49% </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<FONT FACE="Times New Roman" SIZE="2">ownership interest in the building. Brookfield Financial Properties owns the remaining 51% interest in the building. We also lease space in the building from
Brookfield. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Other owned or leased principal locations include: the American Express Service Centers in Fort Lauderdale, Florida; Phoenix,
Arizona; Greensboro, North Carolina; and Salt Lake City, Utah; the American Express Data Centers in Phoenix, Arizona and in Minneapolis, Minnesota; the American Express Finance Center in Phoenix, Arizona; and the Amex Canada Inc. headquarters in
Markham, Ontario, Canada; and service centers located in Mexico City, Mexico; Sydney, Australia; Gurgaon, India and Brighton, United Kingdom. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">During 2004 and 2005, we engaged in several sale-leaseback transactions pursuant to which we sold various owned properties to third parties and leased back the properties under long-term net leases whereby each American Express entity that
leases back the property is responsible for all costs and expenses relating to the property (including maintenance, repair, utilities, operating expenses and insurance costs) in addition to annual rent. The sale-leaseback transactions have not
materially impacted our financial results in any year. Gains resulting from completed sale and leaseback transactions are amortized over the initial ten-year lease periods. We continue to consider whether sale-leaseback transactions are appropriate
for other properties that we currently own. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In February 2000, we entered into a ten-year agreement with CB Richard Ellis, Inc., formerly
known as Trammell Crow Corporate Services, Inc., for facilities, project and transaction management and other related services. The agreement covers North and South America and parts of Europe and Asia. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Generally, we and our subsidiaries lease the premises we occupy in other locations. We believe that the facilities we own or occupy suit our needs and
are well maintained. </FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="9%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_15"></A>ITEM&nbsp;3.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>LEGAL PROCEEDINGS </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Company and its subsidiaries
are involved in a number of legal and arbitration proceedings, including class actions, concerning matters arising in connection with the conduct of their respective business activities. The Company believes it has meritorious defenses to each of
these actions and intends to defend them vigorously. In the course of its business, the Company and its subsidiaries are also subject to governmental examinations, information gathering requests, subpoenas, inquiries and investigations. The Company
believes that it is not a party to, nor are any of its properties the subject of, any pending legal, arbitration, regulatory, tax or investigative proceedings that would have a material adverse effect on the Company&#146;s consolidated financial
condition or liquidity. However, it is possible that the outcome of any such proceeding could have a material impact on results of operations in any particular reporting period as the proceedings are resolved. Certain legal proceedings involving the
Company are described below. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Corporate Matters </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">Beginning in mid-July 2002, 12 putative class action lawsuits were filed in the United States District Court for the Southern District of New York. In October 2002, these cases were consolidated under the caption <U>In re American Express
Company Securities Litigation</U>. These lawsuits allege violations of the federal securities laws and the common law in connection with alleged misstatements regarding certain investments in high-yield bonds and write-downs in the 2000-2001
timeframe. The purported class covers the period from July&nbsp;26, 1999 to July&nbsp;17, 2001. The actions seek unspecified compensatory damages as well as disgorgement, punitive damages, attorneys&#146; fees and costs, and interest. On
March&nbsp;31, 2004, the Court granted the Company&#146;s motion to dismiss the lawsuit. Plaintiffs appealed the dismissal to the United States Court of Appeals for the Second Circuit. In August 2006, the Court of Appeals, without expressing any
views whatsoever on the merits of the cases, vacated the District Court&#146;s judgment and remanded all claims to the District Court for further proceedings. More particularly, the Court of Appeals reversed the District Court&#146;s ruling that two
of the plaintiff&#146;s claims in an amended complaint did not &#147;relate back&#148; to the original complaint and were thus time-barred under the statute of </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<FONT FACE="Times New Roman" SIZE="2">limitations period. As a result, the Court of Appeals decided that it was prudent to remand all claims back to the District Court so that plaintiffs could
file a new amended complaint. Plaintiffs filed their amended complaint on January&nbsp;5, 2007. On or about March&nbsp;6, 2007, the Company filed a motion to strike the amended complaint, which the District Court denied on July&nbsp;24, 2007. The
Company subsequently filed a motion to dismiss the amended complaint, which motion has been fully briefed and is pending before the District Court. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">On November 26, 2003, American Express Travel Related Services Company, Inc. was named as a defendant in a shareholder derivative action purportedly filed on behalf of InfoSpace Inc. The action, captioned <U>Dreiling v. American Express
Travel Related Services Company, Inc.</U>, was filed in the U.S. District Court for the Western District of Washington. The complaint alleges that the Company violated the &#147;short swing&#148; liability provisions of Section&nbsp;16(b) of the
Securities Exchange Act of 1934, as amended, in connection with its sale of InfoSpace common stock. The plaintiff seeks disgorgement of profits from the sale of the InfoSpace shares, as well as fees, expenses and interest. In June&nbsp;2004, the
Court granted American Express&#146; motion to dismiss the complaint without American Express&#146; ever having answered the complaint. In August&nbsp;2006, the U.S. Court of Appeals for the Ninth Circuit reinstated the action because of certain
unresolved factual disputes. The Company, while not admitting liability, has agreed to resolve this matter for a total payment of $1.95 million to InfoSpace, with plaintiff&#146;s attorneys&#146; fees to be paid out of those funds. This settlement
has been approved by the Court and the case has been dismissed with prejudice. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In January 2006, a purported class action captioned
<U>Paula Kritzman, individually and on behalf of all others similarly situated v. American Express Retirement Plan et al.</U> was filed in the U.S. District Court for the Southern District of New York. The plaintiff alleges that when the American
Express Retirement Plan (the &#147;AXP Plan&#148;) was amended effective July&nbsp;1, 1995, to convert from a final average pay formula to a &#147;cash balance&#148; formula for the calculation of benefits, the terms of the amended AXP Plan violated
the Employee Retirement Income Security Act, as amended (&#147;ERISA&#148;), in at least the following ways: (i)&nbsp;the AXP Plan violated ERISA&#146;s prohibition on reducing rates of benefit accrual due to the increasing age of a plan
participant; (ii)&nbsp;the AXP Plan violated ERISA&#146;s prohibition on forfeiture of accrued benefits; and (iii)&nbsp;the AXP Plan violated ERISA&#146;s present value calculation rules. The plaintiff seeks, among other remedies, injunctive relief
entitling the plaintiff and the purported class to benefits that are the greater of (x)&nbsp;the benefits to which the members of the class would have been entitled without regard to the conversion of the benefit payout formula of the AXP Plan to a
cash balance formula and (y)&nbsp;the benefits under the AXP Plan with regard to the cash balance formula. The plaintiff also seeks pre- and post-judgment interest and attorneys fees and expenses. The Company has filed a motion with the Court
seeking to dismiss the complaint. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In November&nbsp;2004, the Company filed a lawsuit captioned <U>American Express Travel Related Services
Company, Inc. v. Visa USA Inc., MasterCard International, Inc. et al.</U> in the U.S. District Court for the Southern District of New York. The lawsuit seeks unspecified monetary damages against Visa, MasterCard and eight major banks that are or
were members of the two card associations for the business lost as a result of the illegal, anticompetitive practices of the card associations that effectively locked the Company out of the bank-issued card business in the United States. The lawsuit
follows the U.S. Supreme Court&#146;s October&nbsp;2004 decision not to hear an appeal from Visa and MasterCard that sought to overturn a lower court ruling that found the two card associations in violation of U.S. antitrust laws. Since filing the
action through September&nbsp;30, 2007, TRS had voluntarily dismissed its claims against the following bank defendants:&nbsp;Bank of America, N.A., Bank of America Corporation (including its subsidiaries Fleet Bank (RI), N.A. and Fleet National
Bank), Household Bank, N.A., Household International, Inc. and USAA Federal Savings Bank.&nbsp;On November&nbsp;7, 2007, the Company announced that it had entered into an agreement with Visa Inc., Visa USA and Visa International to drop Visa as a
defendant in the lawsuit.&nbsp;Under the terms of the settlement agreement, American Express has also agreed to voluntarily dismiss its claims against the following individual banks and financial institutions:&nbsp;Capital One F.S.B., Capital One
Bank, Capital One Financial Corp., Chase Bank USA, N.A., JPMorgan Chase&nbsp;&amp; Co., New American Capital, Inc., Washington Mutual Bank, U.S. Bank, N.A., U.S. Bancorp, Wells Fargo&nbsp;&amp; Co. and Wells Fargo Bank, N.A., as well as any other
Visa member bank.&nbsp;In addition, under the terms of the agreement, Visa has agreed to pay a maximum amount of $2.25 billion to the Company, consisting of (i)&nbsp;$1.13 billion is required to </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<FONT FACE="Times New Roman" SIZE="2">be paid by Visa not later than March&nbsp;31, 2008 and (ii)&nbsp;16 additional quarterly payments of up to $70 million per quarter commencing with quarter
ending March&nbsp;31, 2008.&nbsp;The quarterly payments are subject to the achievement of certain quarterly performance criteria by the Company&#146;s U.S. Global Network Services business.&nbsp;The settlement agreement with Visa has been approved
by Visa USA&#146;s member banks.&nbsp;As a result of the settlement with Visa and the various individual bank defendants, MasterCard is the sole remaining defendant in the lawsuit.&nbsp;Fact discovery that was conducted in connection with the
lawsuit concluded on May&nbsp;31, 2007, and the Court has set a trial date of September&nbsp;9, 2008, with the interim period being devoted to discovery with respect to expert witnesses followed by motions asking the Court to resolve certain legal
issues prior to trial. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>U.S. Card Services and Global Merchant Services Matters </B></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Company has been named in a number of purported class actions in which the plaintiffs allege an unlawful antitrust tying arrangement between the
Company&#146;s charge cards, credit cards and debit cards in violation of various state and federal laws, including the following: (i)&nbsp;<U>Cohen Rese Gallery et al. v. American Express Company et al.</U>, U.S. District Court for the Northern
District of California (filed July&nbsp;2003); (ii)&nbsp;<U>Italian Colors Restaurant v. American Express Company et al.</U>, U.S. District Court for the Northern District of California (filed August 2003); (iii)&nbsp;<U>DRF Jeweler Corp. v.
American Express Company et al.</U>, U.S. District Court&nbsp;for the Southern District of New York (filed December&nbsp;2003); (iv)&nbsp;<U>Hayama Inc. v. American Express Company et al.</U>, Superior Court of California, Los Angeles County (filed
December&nbsp;2003); (v)&nbsp;<U>Chez Noelle Restaurant v. American Express Company et al.</U>, U.S. District Court for the Southern District of New York (filed January&nbsp;2004); (vi)&nbsp;<U>Mascari Enterprises d/b/a Sound Stations v. American
Express Company et al.</U>, U.S. District Court for the Southern District of New York (filed January&nbsp;2004); (vii)&nbsp;<U>Mims Restaurant v. American Express Company et al.</U>, U.S. District Court for the Southern District of New York (filed
February&nbsp;2004); and (viii)&nbsp;<U>The Marcus Corporation v. American Express Company et al.</U>, U.S. District Court for the Southern District of New York (filed July&nbsp;2004). The plaintiffs in these actions seek injunctive relief and an
unspecified amount of damages. Upon motion to the Court by the Company, the venue of the Cohen Rese and Italian Colors actions was moved to the U.S. District Court for the Southern District of New York (&#147;SDNY&#148;) in December&nbsp;2003. Each
of the above-listed actions (except for Hayama) is now pending in the SDNY, consolidated as &#147;In re American Express Merchants&#146; Litigation&#148;. On April&nbsp;30, 2004, the Company filed a motion to dismiss all the actions filed prior to
such date that were pending in the SDNY, and on March&nbsp;15, 2006, such motion was granted, with the Court finding the claims of the plaintiffs to be subject to arbitration. Plaintiffs asked the Court to reconsider its dismissal. That request was
denied. The plaintiffs have appealed the Court&#146;s arbitration ruling. In addition, during the pendency of the motion in the SDNY, the Company had asked the California Superior Court hearing the Hayama action referenced above to stay that action
pending resolution of such motion. The Company also filed a motion to dismiss the action filed by the Marcus Corporation, which was denied in July&nbsp;2005. On October&nbsp;1, 2007, plaintiffs filed a motion seeking certification of a class. The
Company has opposed plaintiffs&#146; motion for class certification. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In January 2006, in a matter captioned <U>Hoffman, et al. v. American
Express Travel Related Services Company, Inc.</U>, No.&nbsp;2001-02281, Superior Court of the State of California, County of Alameda, the Court certified a class action against TRS. Two classes were certified: (1)&nbsp;all persons who held American
Express charge cards governed by New York law with billing addresses in California who purchased American Express&#146; fee-based travel-related insurance plans from September&nbsp;6, 1995, through a date to be determined; and (2)&nbsp;all persons
who held American Express charge cards governed by New York law with billing addresses in states other than California and who purchased American Express fee-based travel-related insurance plans from September&nbsp;6, 1995, through a date to be
determined. The Court did not certify a class to pursue claims on behalf of persons who held American Express credit cards governed by Utah law. Plaintiffs allege that American Express violated California and New York law by allegedly billing
customers for flight and baggage insurance that they did not receive. American Express denies the allegations and filed an interlocutory appeal (known as a petition for a writ of mandate) of the class certification order. In June 2006, the appellate
court denied jurisdiction over that interlocutory appeal. American Express also appealed the denial of its motion to compel individual arbitration of all non-California class members. In July 2007, the appellate court affirmed the denial of </FONT>
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<FONT FACE="Times New Roman" SIZE="2">the motion to compel arbitration. The Company&#146;s request for a rehearing on that issue was denied by the appellate court. The Company filed a petition
for review to the California Supreme Court, which was denied in late October 2007. The Court has set the Hoffman matter for trial in June 2008. In February 2008, the Company filed a summary judgment motion with the Court asking that the complaint be
dismissed as a matter of law. In February 2008, the plaintiff filed a motion with the Court asking that the class be expanded to include persons who hold American Express credit cards governed by Utah law. In the U.S. District Court for the Eastern
District of New York a matter making related allegations to those raised in Hoffman is pending. That matter, captioned <U>Environment Law Enforcement Systems v. American Express et al.</U>, had effectively been stayed pending the proceedings in the
Hoffman action. In October 2006, the Court in the Environment Law action entered an order scheduling a pre-motion conference on American Express&#146; anticipated motion to compel arbitration for January&nbsp;31, 2007. That date was extended pending
the decision by the California appellate court in the Hoffman matter. The Company advised the Court in the Environment Law matter of the California appellate court&#146;s decision in the Hoffman matter and requested that the stay of the Environment
Law matter remain in effect until the Company&#146;s petition for review of the California decision by the California Supreme Court could be considered. With the California Supreme Court now having denied the Company&#146;s petition for review as
described above, the parties expect to report to the Court on the status of the matter. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Company has been named in several purported
class actions in various state courts alleging that the Company violated the respective state&#146;s laws by wrongfully collecting amounts assessed on converting transactions made in foreign currencies to U.S. dollars and/or failing to properly
disclose the existence of such amounts in its Cardmember agreements and billing statements. The plaintiffs in the actions seek, among other remedies, injunctive relief, money damages and/or attorneys&#146; fees on their own behalf and on behalf of
the putative class of persons similarly situated. In December&nbsp;2005, the U.S. District Court for the Southern District of Florida granted final approval of a nationwide class action settlement to resolve all lawsuits and allegations with respect
to the Company&#146;s collection and disclosure of fees assessed on transactions made in foreign currencies in the case captioned <U>Lipuma v. American Express Bank, American Express Travel Related Services Company, Inc. and American Express
Centurion Bank</U> (filed in August&nbsp;2003). The settlement approved by the Court calls for the Company to (a)&nbsp;deposit $75&nbsp;million into a fund that will be used to reimburse class members with valid claims, make certain contributions to
charitable organizations to be identified later and pay attorneys&#146; fees and (b)&nbsp;make certain changes to the disclosures in its Cardmember agreements and billing statements regarding its foreign currency conversion practices (which it has
already done). The Company had previously established reserves to cover the payment that will be made to reimburse class members and pay attorneys&#146; fees. The Court&#146;s approval order enjoins all other proceedings that make related
allegations pending a final approval hearing including, but not limited to the following cases: (i)&nbsp;<U>Environmental Law Foundation, et al. v. American Express Company, et al.</U>, Superior Court of Alameda County, California (filed
March&nbsp;2003); (ii)&nbsp;<U>Rubin v. American Express Company and American Express Travel Related Services Company, Inc.</U>, Circuit Court of Madison County, Illinois (filed April 2003); (iii)&nbsp;<U>Angie Arambula, et al. v. American Express
Company, et al.</U>, District Court of Cameron County, Texas, 103rd Judicial District (filed May&nbsp;2003); (iv)&nbsp;<U>Fuentes v. American Express Travel Related Services Company, Inc. and American Express Company</U>, District Court of Hidalgo
County, Texas (filed May&nbsp;2003); (v)&nbsp;<U>Wick v. American Express Company, et al.</U>, Circuit Court of Cook County, Illinois (filed May&nbsp;2003); (vi)&nbsp;<U>Bernd Bildstein v. American Express Company, et al.</U>, Supreme Court of
Queens County, New York (filed June&nbsp;2003); (vii)&nbsp;<U>Janowitz v. American Express Company, et al.</U>, Circuit Court of Cook County, Illinois (filed September&nbsp;2003); (viii)&nbsp;<U>Paul v. American Express Company, et al.</U>, Superior
Court of Orange County, California (filed January&nbsp;2004); and (ix)&nbsp;<U>Ball v. American Express, et al.</U>, Superior Court of San Joaquin, California (filed August&nbsp;2004). With the Company having reached a resolution with several
objectors who had appealed to the U.S. Court of Appeals for the Eleventh Circuit, that appeal has been dismissed and the settlement is now final. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">In June&nbsp;2006, a putative class action captioned <U>Homa v. American Express Company et al.</U> was filed in the U.S. District Court for the District of New Jersey. The case alleges, generally, misleading and fraudulent advertising of
the &#147;tiered&#148; &#147;up to 5%&#148; cash rebates with the Blue Cash card. The complaint initially sought certification of a nationwide class consisting of &#147;all persons who applied for and received an American Express </FONT>
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<FONT FACE="Times New Roman" SIZE="2">Blue Cash card during the period from September&nbsp;30, 2003 to the present and who did not get the rebate or rebates provided for in the
offer.&#148;&nbsp;On December&nbsp;1, 2006, however, plaintiff filed a First Amended Complaint dropping the nationwide class claims and asserting claims only on behalf of New Jersey residents who &#147;while so residing in New Jersey, applied for
and received an American Express Blue Cash card during the period from September&nbsp;30, 2003 to the present.&#148;&nbsp;The plaintiff seeks unspecified damages and other unspecified relief that the Court deems appropriate. In May 2007, the Court
granted the Company&#146;s motion to compel individual arbitration and dismissed the complaint. Plaintiff has filed a Notice of Appeal of that decision with the U.S. Court of Appeals for the Third Circuit, and the parties are in the process of
submitting their briefs in the appeal. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">In August 2005, a purported class action
captioned <U>Performance Labs Inc. v. American Express Travel Related Services Company, Inc. (&#147;TRS&#148;), MasterCard International Incorporated, Visa USA, Inc. et al.</U> was filed in the U. S. District Court for the District of New Jersey.
The action was then transferred to the U.S. District Court for the Eastern District of New York. The complaint alleged that the Company&#146;s policy prohibiting merchants from imposing restrictions on the use of American Express<FONT
FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> Cards that are not imposed equally on other forms of payment violates U.S. antitrust laws. The suit sought injunctive relief. TRS moved to dismiss the complaint. In addition, the Company
learned that two additional purported class actions that made allegations similar to those made in the Performance Labs action had also been filed: <U>518 Restaurant Corp. v. American Express Travel Related Services Company, Inc., MasterCard
International Incorporated, Visa USA, Inc. et al.</U>&nbsp;(filed in August 2005 in the United States District Court for the Eastern District of Pennsylvania) and <U>Lepkowski v. American Express Travel Related Services Company, Inc., MasterCard
International Incorporated, Visa USA, Inc. et al.</U> (filed in October 2005 in the U.S. District Court for the Eastern District of New York). The plaintiffs in these actions sought injunctive relief. The 518 Restaurant Corp. action was voluntarily
withdrawn without TRS ever having been served with the complaint. The complaint in the Lepkowski action was also never served. The Lepkowski and Performance Labs cases were consolidated in the U.S. District Court for the Eastern District of New York
for pre-trial purposes in a larger multi-district litigation involving other named defendants not affiliated with the Company, and all proceedings in the consolidated action were stayed pending the filing of a consolidated amended complaint. Such
consolidated amended complaint was filed on April&nbsp;24, 2006, but the Company was not named in that action. Other defendants, not affiliated with the Company, were named. However, on April&nbsp;18, 2006, Performance Labs, Inc., Joseph Lepkowski,
DDS d/b/a Oak Park Dental Studio, and Jasa Inc. filed an action in the SDNY against American Express Company and American Express Travel Related Services Company, Inc. This complaint challenges the Company&#146;s &#147;Anti-Steering&#148; rules as
unlawful under the antitrust laws. As alleged by plaintiffs, these rules prevent merchants from offering consumers incentives to use alternative forms of payments when consumers wish to use an American Express-branded card. Originally plaintiffs
sought only injunctive relief but have since amended their complaint to also seek unspecified damages. These plaintiffs have agreed that a stay would be imposed with regard to their respective actions pending the appeal of the Court&#146;s
arbitration ruling discussed above. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In July 2004, a purported class action captioned <U>Ross, et al. v. American Express Company, American
Express Travel Related Services and American Express Centurion Bank</U> was filed in the United States District Court for the Southern District of New York. The complaint alleges that AMEX conspired with Visa, MasterCard and Diners Club in the
setting of foreign conversion rates and in the inclusion of arbitration clauses in certain of their cardmember agreements. The suit seeks injunctive relief and unspecified damages. The class is defined as &#147;all Visa, MasterCard and Diners Club
general purpose cardholders who used cards issued by any of the MDL Defendant Banks....&#148; American Express cardholders are not part of the class. In September 2005, the Court denied the Company&#146;s motion to dismiss the action and
preliminarily certified an injunction class of Visa and MasterCard cardholders to determine the validity of Visa&#146;s and MasterCard&#146;s cardmember arbitration clauses. American Express filed a motion for reconsideration with the Court, which
motion was denied in September 2006. The Company has filed an appeal from the District Court&#146;s order denying its motion to compel arbitration. On February&nbsp;13, 2007, the United States Court of Appeals for the Second Circuit denied
plaintiffs motion to dismiss such appeal. That appeal is pending. The Company had also asked the appellate court to entertain an interlocutory appeal of the District Court&#146;s certification of an injunction class. On December&nbsp;19, 2006, that
appellate court denied that request. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">50 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>International Matters </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">In May 2006, in a matter captioned <U>Marcotte v. Bank of Montreal et al.</U>, filed in the Superior Court of Quebec, District of Montreal (originally filed in April 2003) the Court authorized a class action against
Amex Bank of Canada, Bank of Montreal, Toronto-Dominion Bank, Royal Bank of Canada, Canadian Imperial Bank of Commerce, Scotiabank, National Bank of Canada, Laurentian Bank of Canada and Citibank Canada. The action alleges that conversion
commissions made on foreign currency transactions are credit charges under the Quebec Consumer Protection Act (the &#147;QCPA&#148;) and cannot be charged prior to the 21-day grace period under the QCPA. The class includes all persons holding a
credit card issued by one of the defendants to whom fees were charged since April&nbsp;17, 2000, for transactions made in foreign currency before expiration of the period of 21 days following the statement of account. The class claims reimbursement
of all foreign currency conversions, CDN $400 per class member for trouble, inconvenience and punitive damages, interest and fees and costs. The trial is scheduled to commence September 2008. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In March 2006, a motion to authorize a class action captioned <U>Jasmin v. Amex Bank of Canada</U>, was filed in the Superior Court of Quebec, District
of Montreal. The motion purports to claim, on behalf of a Canada-wide class of persons who were holders of an American Express Credit Card who paid their credit card account at the counter or at an automatic banking machine of an authorized
financial institution, and who obtained a grace period that was less than that appearing on their statement of account and/or who were charged interest under a three- to five-day processing delay contrary to their contracts, the law respecting banks
and the Civil Code of Quebec. A claim is also being made of an alleged violation of the Charter of Human Rights and Freedoms for depriving the class members of their use of property. The class claims reimbursement per class member of finance charges
in the amount of CDN $75, CDN $100 in punitive damages and CDN $25 for having to pay their account early and being deprived of the use of their money, interest, fees and costs. The claim in Jasmin has been withdrawn as part of the settlement in
Ptack, below. Amex Bank of Canada will pay a nominal amount for the costs of the withdrawal. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In March 2006, in a matter captioned <U>Ptack
v. Amex Bank of Canada</U>, filed in the Superior Court of Quebec, District of Montreal (originally filed in March 2004), the Court authorized a class action against Amex Bank of Canada. The class includes all persons who were holders of an American
Express Credit Card who paid their credit card account via Internet, telephone and/or automatic banking machine, on or before the due date and incurred a finance charge as a result of the alleged payment processing policy of Amex Bank. The class
claims reimbursement per class member of finance charges, CDN $100 in punitive damages and CDN $100 for waste of time, interest and fees and costs. A settlement agreement has been entered into by the parties, and that settlement agreement was
approved by the Court on February&nbsp;18, 2008. Under the settlement agreement terms Amex Bank of Canada will pay attorneys&#146; fees of approximately CDN $200,000 and make certain changes to the Cardmember billing statements regarding timing of
payment processing. No payments will be made to class members. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In November 2006, in a matter captioned <U>Option Consommateurs and Benoit
Fortin v. Amex Bank of Canada et al.</U> filed in the Superior Court of Quebec, District of Montreal (originally filed in July 2003), the Court authorized a class action against Amex Bank of Canada, Citibank Canada, MBNA Canada, Diners Club
International, Capital One and Royal Bank of Canada. The plaintiff alleges that the defendants have violated the Quebec Consumer Protection Act (&#147;QCPA&#148;) by imposing finance charges on credit card transactions prior to 21 days following the
receipt of the statement containing the charge. It is alleged that the QCPA provisions which require a 21-day grace period prior to imposing finance charges applies to credit cards issued by Amex Bank of Canada in Quebec and that finance charges
imposed prior to this grace period violate the Act. The class seeks reimbursement of all finance charges imposed in violation of the Act, CDN$200 in punitive damages per class member, interest and fees and costs. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In November 2006, in a matter captioned <U>Sylvan Adams v. Amex Bank of Canada</U> filed in the Superior Court of Quebec, District of Montreal
(originally filed in November 2004), the Court authorized a class action against Amex Bank of Canada. The plaintiff alleges that prior to December 2003, Amex Bank of Canada charged </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px">
<FONT FACE="Times New Roman" SIZE="2">a foreign currency conversion commission on transactions to purchase goods and services in currencies other than Canadian dollars and failed to disclose the
commissions in monthly billing statements or solicitations directed to prospective cardmembers. The class, consisting of all Cardmembers in Quebec that purchased goods or services in a foreign currency prior to December 2003, claims reimbursement of
all foreign currency conversion commissions, CDN$1,000 in punitive damages per class member, interest and fees and costs. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In May 2005,
Amex Bank of Canada was added as a defendant to a motion to authorize a class action captioned <U>Option Consommateurs and Joel-Christian St-Pierre v. Bank of Montreal et al.</U> filed in the Superior Court of Quebec, District of Quebec. The motion,
which also names as defendants Royal Bank of Canada, Toronto-Dominion Bank, HSBC Bank of Canada, among others, alleges that the defendants violated QCPA by imposing finance charges on credit card transactions prior to 21 days following the receipt
of the statement containing the charge. It is alleged that the QCPA provisions, which require a 21-day grace period prior to imposing finance charges, applies to credit cards issued by Amex Bank of Canada in Quebec and that finance charges imposed
prior to this grace period violate the QCPA. The proposed class seeks reimbursement of all finance charges imposed in violation of the QCPA, CDN$100 in punitive damages per class member, interest and fees and costs. </FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Other Matters </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">As described above, U.S. and foreign
regulatory authorities, together with international organizations, have raised increasing concerns over the ability of criminal organizations and corrupt persons to use global financial intermediaries to facilitate money laundering. Compliance
efforts to combat money laundering remain a high priority for the Company and its subsidiaries, including AEBL and American Express Travel Related Services Company, Inc. (&#147;TRS&#148;), and they have increased their efforts to address evolving
regulatory and supervisory standards and requirements in jurisdictions in which they do business. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">As previously disclosed, in early 2004,
American Express Bank International (&#147;AEBI&#148;), a subsidiary of AEBL headquartered in Miami, received subpoenas from the Department of Justice (&#147;DOJ&#148;) relating to certain customer accounts and anti-money laundering
(&#147;AML&#148;) compliance programs. In September&nbsp;2006, the DOJ informed AEBI of concerns relating to its AML compliance program. In addition, in 2007, the Board of Governors of the Federal Reserve System (the &#147;Federal Reserve&#148;) and
the Financial Crimes Enforcement Network (&#147;FinCEN&#148;) of the Department of Treasury informed AEBI of potential enforcement actions relating to its AML programs. Also, in June 2007, FinCEN informed TRS that it separately had concerns relating
to TRS&#146;s compliance with the provisions of the Bank Secrecy Act regarding the filing of Suspicious Activity Reports in connection with its travelers check business. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">During the first quarter of 2007, the Company established a reserve in the amount of $60 million for regulatory and legal matters at AEBI. The Company increased the reserve during the second quarter of 2007 for the
resolution of the matters. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">On August&nbsp;6, 2007, AEBI entered into a settlement with the DOJ, the Federal Reserve and FinCEN relating to
deficiencies in its AML program. As part of the settlement, AEBI entered into a Deferred Prosecution Agreement with the DOJ, a Cease and Desist Order with the Federal Reserve and a Consent Order with FinCEN, each of which provides for a money
penalty. The Consent Order with FinCEN also resolves FinCEN&#146;s determination that TRS did not file timely, accurate and complete Suspicious Activity Reports. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">The Company has paid a total of $65 million in settlement of all these matters. Of the amount paid, $60 million is attributable to the matters involving AEBI and $5 million is attributable to the matter involving TRS.
The DOJ assessed a $55 million payment under the Deferred Prosecution Agreement. FinCEN assessed a civil money penalty in the amount of $25 million under its Consent Order, $15 million of which is concurrent with the DOJ payment and is therefore
deemed satisfied by the payment made to the DOJ, with the remaining $10 million assessed under the FinCEN Consent Order paid to the Department of the Treasury. The Federal Reserve assessed </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px">
<FONT FACE="Times New Roman" SIZE="2">a civil money penalty in the amount of $20 million under its Cease and Desist Order, which is concurrent with the penalty assessed by the DOJ and FinCEN and
is likewise therefore deemed satisfied by the payments to the DOJ and the Department of the Treasury. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Under the Deferred Prosecution
Agreement, the DOJ filed an information in the U.S. District Court for the Southern District of Florida charging AEBI with violating the Bank Secrecy Act by failing to maintain an effective anti-money laundering program. This charge will be
deferred, and absent a breach of the agreement, will be dismissed after 12 months or such earlier time as described in the Deferred Prosecution Agreement, and no further prosecution relating to these matters will be brought. The Federal
Reserve&#146;s Cease and Desist Order also requires that AEBI implement certain remedial measures, which are presently underway. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Also on
August&nbsp;6, 2007, AEBL entered into a Written Agreement with the New York State Banking Department, the primary regulator of AEBL, under which AEBL has agreed to implement certain enhancements and remedial measures to its AML compliance program.
There is no monetary fine or penalty associated with this Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In addition to resolving each of the above proceedings, the Company
has committed to its consolidated supervisor, the Office of Thrift Supervision (&#147;OTS&#148;), that it will complete its efforts to develop and implement an enterprise-wide AML compliance program that will govern compliance throughout the
American Express organization, and will ensure that each of its subsidiaries is provided with resources adequate to meet its legal and regulatory obligations. The Company will report periodically on its progress to the OTS. </FONT></P> <P
STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="9%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_16"></A>ITEM&nbsp;4.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">We did not submit any matters to a vote of our security holders during the last quarter of our fiscal year ended December&nbsp;31, 2007. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">53 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_17"></A>PART II </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="9%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_18"></A>ITEM&nbsp;5.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>MARKET FOR COMPANY&#146;S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES </B></FONT></TD></TR></TABLE> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(a) Our common stock trades principally on The New York Stock Exchange under the trading symbol AXP. As of December&nbsp;31, 2007, we had 50,216 common
shareholders of record. You can find price and dividend information concerning our common stock in Note 22 to our Consolidated Financial Statements, which can be found on page 111 of our 2007 Annual Report to Shareholders, which Note is incorporated
herein by reference. You can find information on securities authorized for issuance under our equity compensation plans under the captions &#147;Executive Compensation&#151;Share Plans,&#148; and &#147;Executive Compensation&#151;Equity Compensation
Plan Information&#148; to be contained in the Company&#146;s definitive 2008 proxy statement for our Annual Meeting of Shareholders, which is scheduled to be held on April&nbsp;28, 2008. The information to be found under such captions is
incorporated herein by reference. Our definitive 2008 proxy statement for our Annual Meeting of Shareholders is expected to be filed with the SEC in March 2008 (and, in any event, not later than 120 days of the close of our most recently completed
fiscal year). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(b) Not applicable. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">(c) The table below sets forth the information with respect to purchases of our common stock made by or on behalf of the Company during the quarter ended December&nbsp;31, 2007. </FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="48%"></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD></TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1px solid #000000;width:22pt"><FONT FACE="Times New Roman" SIZE="1"><B>Period</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>Total&nbsp;Number</B></FONT><br><FONT FACE="Times New Roman" SIZE="1"><B>of Shares<BR>Purchased</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>Average&nbsp;Price</B></FONT><br><FONT FACE="Times New Roman" SIZE="1"><B>Paid&nbsp;Per&nbsp;Share</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>Total&nbsp;Number&nbsp;of</B></FONT><br><FONT FACE="Times New Roman" SIZE="1"><B>Shares<BR>Purchased as</B></FONT><br><FONT
FACE="Times New Roman" SIZE="1"><B>Part of Publicly<BR>Announced<BR>Plans or<BR>Programs (3)</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>Maximum<BR>Number&nbsp;of&nbsp;Shares<BR>that May Yet Be<BR>Purchased Under<BR>the Plans or</B></FONT><br><FONT
FACE="Times New Roman" SIZE="1"><B>Programs</B></FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">October&nbsp;1-31, 2007</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Repurchase program (1)</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:1px; margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Employee transactions (2)</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,280,300</FONT> <P STYLE="margin-bottom:1px; margin-top:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">9,719</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT> <P STYLE="margin-bottom:1px; margin-top:0px"><FONT FACE="Times New Roman" SIZE="2">$</FONT></P></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">59.19</FONT> <P STYLE="margin-bottom:1px; margin-top:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">60.08</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,280,300</FONT> <P STYLE="margin-bottom:1px; margin-top:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">N/A</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">116,077,023</FONT> <P STYLE="margin-bottom:1px; margin-top:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">N/A</FONT></P></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="3"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">November&nbsp;1-30, 2007</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Repurchase program (1)</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:1px; margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Employee transactions (2)</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">10,801,055</FONT> <P STYLE="margin-bottom:1px; margin-top:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,786</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT> <P STYLE="margin-bottom:1px; margin-top:0px"><FONT FACE="Times New Roman" SIZE="2">$</FONT></P></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">57.28</FONT> <P STYLE="margin-bottom:1px; margin-top:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">58.81</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">10,801,055</FONT> <P STYLE="margin-bottom:1px; margin-top:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">N/A</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">105,275,968</FONT> <P STYLE="margin-bottom:1px; margin-top:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">N/A</FONT></P></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="3"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">December&nbsp;1-31, 2007</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Repurchase program (1)</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:1px; margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Employee transactions (2)</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">525,000</FONT> <P STYLE="margin-bottom:1px; margin-top:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">19,690</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT> <P STYLE="margin-bottom:1px; margin-top:0px"><FONT FACE="Times New Roman" SIZE="2">$</FONT></P></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">57.53</FONT> <P STYLE="margin-bottom:1px; margin-top:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">53.44</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">525,000</FONT> <P STYLE="margin-bottom:1px; margin-top:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">N/A</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">104,750,968</FONT> <P STYLE="margin-bottom:1px; margin-top:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">N/A</FONT></P></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Total</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:1.00em; text-indent:-1.00em"><FONT
FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Repurchase program (1)</FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px; margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Employee
transactions (2)</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">13,606,355</FONT> <P STYLE="margin-bottom:1px; margin-top:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">32,195</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT> <P STYLE="margin-bottom:1px; margin-top:0px"><FONT FACE="Times New Roman" SIZE="2">$</FONT></P></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">57.61</FONT> <P STYLE="margin-bottom:1px; margin-top:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">55.91</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">13,606,355</FONT> <P STYLE="margin-bottom:1px; margin-top:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">N/A</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
</TABLE> <P STYLE="line-height:8px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(1)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">The Company has approximately 104.8&nbsp;million shares remaining under the total authorization. Such authorization does not have an expiration date, and at present, there is no
intention to modify or otherwise rescind such authorization. Since September 1994, the Company has acquired 665.2&nbsp;million shares under various Board authorizations to repurchase up to an aggregate of 770&nbsp;million shares, including purchases
made under agreements with third parties. </FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">54 </FONT></P>


<p Style='page-break-before:always'>
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<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(2)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Includes: (a)&nbsp;shares delivered by or deducted from holders of employee stock options who exercised options (granted under the Company&#146;s incentive compensation plans) in
satisfaction of the exercise price and/or tax withholding obligation of such holders and (b)&nbsp;restricted shares withheld (under the terms of grants under the Company&#146;s incentive compensation plans) to offset tax withholding obligations that
occur upon vesting and release of restricted shares. The Company&#146;s incentive compensation plans provide that the value of the shares delivered or attested to, or withheld, shall be the average of the high and low price of the Company&#146;s
common stock on the date the relevant transaction occurs. </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(3)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Share purchases under publicly announced programs are made pursuant to open market purchases or privately negotiated transactions (including with employee benefit plans) as market
conditions warrant and at prices the Company deems appropriate. </FONT></TD></TR></TABLE> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="10%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_19"></A>ITEM&nbsp;6.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>SELECTED FINANCIAL DATA </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The &#147;Consolidated
Five-Year Summary of Selected Financial Data&#148; appearing on page <B></B>113 of our 2007 Annual Report to Shareholders is incorporated herein by reference. </FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="10%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_20"></A>ITEM&nbsp;7.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION </B></FONT></TD></TR></TABLE> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The information set forth under the heading &#147;Financial Review&#148; appearing on pages <B></B>26-64 of our 2007 Annual Report to Shareholders is
incorporated herein by reference. </FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="10%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_21"></A>ITEM&nbsp;7A.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">The information set forth under the heading &#147;Risk Management&#148; appearing on pages <B></B>49-52 and in Note&nbsp;12 to our Consolidated Financial Statements on pages <B></B>94-95 of our 2007 Annual Report to Shareholders is
incorporated herein by reference. </FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="10%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_22"></A>ITEM&nbsp;8.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The
&#147;Report of Independent Registered Public Accounting Firm&#148; (PricewaterhouseCoopers LLP), the &#147;Consolidated Financial Statements&#148; and the &#147;Notes to Consolidated Financial Statements&#148; appearing on pages <B></B>66-112 of
our 2007 Annual Report to Shareholders are incorporated herein by reference. </FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="10%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_23"></A>ITEM&nbsp;9.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE </B></FONT></TD></TR></TABLE> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Not applicable. </FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="10%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_24"></A>ITEM&nbsp;9A.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>CONTROLS AND PROCEDURES </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Company&#146;s
management, with the participation of the Company&#146;s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company&#146;s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and
15d-15(e) under the Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;) as of the end of the period covered by this report. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that,
as of the end of such period, the Company&#146;s disclosure controls and procedures are effective. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">There have not been any changes in the
Company&#146;s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the Company&#146;s fourth quarter that have materially affected, or are reasonably likely to materially
affect, the Company&#146;s internal control over financial reporting. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">55 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;Management&#146;s Report on Internal Control over Financial Reporting,&#148; which sets forth
management&#146;s evaluation of internal control over financial reporting, and the &#147;Report of Independent Registered Public Accounting Firm&#148; on the effectiveness of the Company&#146;s internal control over financial reporting as of
December&nbsp;31, 2007, appearing on pages 65-66 of our 2007 Annual Report to Shareholders, are incorporated herein by reference. </FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="10%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_25"></A>ITEM&nbsp;9B.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>OTHER INFORMATION </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Not applicable. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">56 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_26"></A>PART III </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="26%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_27"></A>ITEMS&nbsp;10,&nbsp;11,&nbsp;12&nbsp;and&nbsp;13.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE
<A NAME="toc66665_28"></A>GOVERNANCE; EXECUTIVE COMPENSATION; SECURITY
<A NAME="toc66665_29"></A>OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
<A NAME="toc66665_30"></A>MANAGEMENT AND RELATED STOCKHOLDER MATTERS; CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">We expect to file with the SEC, in March 2008 (and, in any event, not later than 120 days after the close of our last fiscal year), a definitive proxy statement, pursuant to Regulation 14A of the SEC in connection
with our Annual Meeting of Shareholders to be held April&nbsp;28, 2008, which involves the election of directors. The following information to be included in such proxy statement is incorporated herein by reference: </FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">information included under the caption &#147;Corporate Governance&#151;Summary of the Company&#146;s Corporate Governance Principles&#151;Independence of
Directors;&#148; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">information included in the table under the caption &#147;Corporate Governance&#151;Membership on Board Committees;&#148; </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">information under the captions &#147;Corporate Governance&#151;Compensation and Benefits Committee&#151;Compensation Committee Interlocks and Insider
Participation&#148; and &#147;Report of the Compensation and Benefits Committee;&#148; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">information included under the caption &#147;Corporate Governance&#151;Audit Committee;&#148; </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">information included under the caption &#147;Compensation of Directors;&#148; </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">information included under the caption &#147;Ownership of Our Common Shares;&#148; </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">information included under the caption &#147;Items to be Voted on by Shareholders&#151;Item&nbsp;1&#151;Election of Directors;&#148; </FONT></P></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">information included under the caption &#147;Executive Compensation;&#148; </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">information under the caption &#147;Certain Relationships and Transactions;&#148; and </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">information under the caption &#147;Section 16(a) Beneficial Ownership Reporting Compliance.&#148; </FONT></P></TD></TR></TABLE> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In addition, the information regarding executive officers called for by Item&nbsp;401(b) of Regulation S-K may be found under the caption &#147;Executive
Officers of the Company&#148; in this report. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We have adopted a set of Corporate Governance Principles, which together with the charters
of the five standing committees of the Board of Directors (Audit; Compensation and Benefits; Executive; Nominating and Governance; and Public Responsibility), our Code of Conduct (which constitutes the Company&#146;s code of ethics), and the Code of
Business Conduct for the Members of the Board of Directors provide the framework for the governance of the Company. A complete copy of our Corporate Governance Principles, the charters of each of the Board committees, the Code of Conduct (which
applies not only to our Chief Executive Officer, Chief Financial Officer and Comptroller, but also to all other employees of the Company) and the Code of Business Conduct for the Members of the Board of Directors may be found by clicking on the
&#147;Corporate Governance&#148; link found on our Investor Relations Web site at http://ir.americanexpress.com. You may also access our Investor Relations Web site through the Company&#146;s main Web site at www.americanexpress.com by clicking on
the &#147;About American Express&#148; link, which is located at the bottom of the Company&#146;s homepage. (Information from such sites is not incorporated by reference into this report.) You may also obtain free copies of these materials by
writing to our Secretary at the Company&#146;s headquarters. </FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="9%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_31"></A>ITEM&nbsp;14.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>PRINCIPAL ACCOUNTING FEES AND SERVICES </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The
information set forth under the heading &#147;Item 2&#151;Ratification of the Appointment of Independent Registered Public Accounting Firm&#151;Audit Fees;&#148; &#147;&#151;Audit-Related Fees;&#148; &#147;&#151;Tax Fees;&#148; &#147;&#151;All Other
Fees;&#148; and &#147;&#151;Policy on Pre-Approval of Services Provided by Independent Registered Public Accounting Firm,&#148; which will appear in the Company&#146;s definitive proxy statement in connection with our Annual Meeting of Shareholders
to be held April&nbsp;28, 2008, is incorporated herein by reference. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">57 </FONT></P>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_32"></A>PART IV </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="9%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_33"></A>ITEM&nbsp;15.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>EXHIBITS AND FINANCIAL STATEMENT SCHEDULES </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1.
<I>Financial Statements</I>: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The financial statements filed as a part of this report are listed on page F-1 hereof under &#147;Index to
Financial Statements Covered by Reports of Independent Registered Public Accounting Firm,&#148; which is incorporated herein by reference. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">2. <I>Financial Statement Schedule</I>: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The financial statement schedule required to be filed in this report is listed on page F-1
hereof under &#147;Index to Financial Statements Covered by Reports of Independent Registered Public Accounting Firm,&#148; which is incorporated herein by reference. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">3. <I>Exhibits</I>: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The list of exhibits required to be filed as exhibits to this report are listed on
pages E-1 through E-5 hereof under &#147;Exhibit Index,&#148; which is incorporated herein by reference. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">58 </FONT></P>


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<A NAME="toc66665_34"></A>SIGNATURES </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Pursuant to the requirements of Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934,
the Company has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">AMERICAN EXPRESS COMPANY</FONT></TD></TR>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">February 28, 2008</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">/s/&nbsp;&nbsp;&nbsp;&nbsp;D<SMALL>ANIEL</SMALL> T.
H<SMALL>ENRY&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</SMALL></FONT></P></TD></TR>
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<TD VALIGN="bottom" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Daniel T. Henry</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="1"><B>Executive Vice President and</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Chief Financial Officer</B></FONT></P></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed
below by the following persons on behalf of the Company and in the capacities and on the date indicated. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">/s/&nbsp;&nbsp;&nbsp;&nbsp;K<SMALL>ENNETH</SMALL> I.
C<SMALL>HENAULT&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</SMALL></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">/s/&nbsp;&nbsp;&nbsp;&nbsp;J<SMALL>AN</SMALL>
L<SMALL>ESCHLY&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</SMALL></FONT></P></TD></TR>
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<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Kenneth I. Chenault</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="1"><B>Chairman, Chief Executive Officer and</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Director</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Jan Leschly</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT FACE="Times New Roman"
SIZE="1"><B>Director</B></FONT></P></TD></TR>
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<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">/s/&nbsp;&nbsp;&nbsp;&nbsp;D<SMALL>ANIEL</SMALL> T.
H<SMALL>ENRY&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</SMALL></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">/s/&nbsp;&nbsp;&nbsp;&nbsp;R<SMALL>ICHARD</SMALL> C.
L<SMALL>EVIN&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</SMALL></FONT></P></TD></TR>
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<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B></B><I></I><B>Daniel T. Henry</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="1"><B>Executive Vice President and</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Chief Financial Officer</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B></B><I></I><B>Richard C. Levin</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="1"><B>Director</B></FONT></P></TD></TR>
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<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">/s/&nbsp;&nbsp;&nbsp;&nbsp;J<SMALL>OAN</SMALL> C.
A<SMALL>MBLE&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</SMALL></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">/s/&nbsp;&nbsp;&nbsp;&nbsp;R<SMALL>ICHARD</SMALL> A.
M<SMALL>C</SMALL>G<SMALL>INN&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</SMALL></FONT></P></TD></TR>
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<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B></B><I></I><B>Joan C. Amble</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="1"><B>Executive Vice President and</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Comptroller</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B></B><I></I><B>Richard A. McGinn</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="1"><B>Director</B></FONT></P></TD></TR>
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<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">/s/&nbsp;&nbsp;&nbsp;&nbsp;D<SMALL>ANIEL</SMALL> F.
A<SMALL>KERSON&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</SMALL></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">/s/&nbsp;&nbsp;&nbsp;&nbsp;E<SMALL>DWARD</SMALL> D.
M<SMALL>ILLER&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</SMALL></FONT></P></TD></TR>
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<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B></B><I></I><B>Daniel F. Akerson</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="1"><B>Director</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B></B><I></I><B>Edward D. Miller</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="1"><B>Director</B></FONT></P></TD></TR>
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<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">/s/&nbsp;&nbsp;&nbsp;&nbsp;C<SMALL>HARLENE</SMALL>
B<SMALL>ARSHEFSKY&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</SMALL></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">/s/&nbsp;&nbsp;&nbsp;&nbsp;F<SMALL>RANK</SMALL> P.
P<SMALL>OPOFF&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</SMALL></FONT></P></TD></TR>
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<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Charlene Barshefsky</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="1"><B>Director</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B></B><I></I><B>Frank P. Popoff</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="1"><B>Director</B></FONT></P></TD></TR>
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<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">/s/&nbsp;&nbsp;&nbsp;&nbsp;U<SMALL>RSULA</SMALL> M.
B<SMALL>URNS&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</SMALL></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">/s/&nbsp;&nbsp;&nbsp;&nbsp;S<SMALL>TEVEN</SMALL> S
R<SMALL>EINEMUND&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</SMALL></FONT></P></TD></TR>
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<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B></B><I></I><B>Ursula M. Burns</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="1"><B>Director</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B></B><I></I><B>Steven S Reinemund</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="1"><B>Director</B></FONT></P></TD></TR>
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<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">/s/&nbsp;&nbsp;&nbsp;&nbsp;P<SMALL>ETER</SMALL>
C<SMALL>HERNIN&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</SMALL></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">/s/&nbsp;&nbsp;&nbsp;&nbsp;R<SMALL>OBERT</SMALL> D.
W<SMALL>ALTER&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</SMALL></FONT></P></TD></TR>
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<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Peter Chernin</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT FACE="Times New Roman"
SIZE="1"><B>Director</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B></B><I></I><B>Robert D. Walter</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="1"><B>Director</B></FONT></P></TD></TR>
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<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">/s/&nbsp;&nbsp;&nbsp;&nbsp;V<SMALL>ERNON</SMALL> E. J<SMALL>ORDAN</SMALL>,
J<SMALL>R</SMALL>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">/s/&nbsp;&nbsp;&nbsp;&nbsp;R<SMALL>ONALD</SMALL> A.
W<SMALL>ILLIAMS&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</SMALL></FONT></P></TD></TR>
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<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Vernon E. Jordan, Jr.</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="1"><B>Director</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B></B><I></I><B>Ronald A. Williams</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="1"><B>Director</B></FONT></P></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">February 28, 2008 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>AMERICAN EXPRESS COMPANY </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_35"></A>INDEX TO FINANCIAL STATEMENTS </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>COVERED BY REPORTS OF INDEPENDENT REGISTERED </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>PUBLIC ACCOUNTING FIRM </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>(Items
15(a)(1) and 15(a)(2) of Form 10-K) </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD></TD>
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<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>Form&nbsp;10-K</B></FONT></TD>
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<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>Annual&nbsp;Report</B></FONT><br><FONT FACE="Times New Roman" SIZE="1"><B>to&nbsp;Shareholders</B></FONT><br><FONT
FACE="Times New Roman" SIZE="1"><B>(Page)</B></FONT></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">American Express Company and Subsidiaries:</FONT></P></TD>
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<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
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<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Data incorporated by reference from 2007 Annual Report to Shareholders:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
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<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Management&#146;s report on internal control over financial reporting</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">65</FONT></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Report of independent registered public accounting firm (PricewaterhouseCoopers LLP)</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">66</FONT></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Consolidated statements of income for each of the three years in the period ended December&nbsp;31, 2007</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">68</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Consolidated balance sheets at December&nbsp;31, 2007 and 2006</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">69</FONT></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Consolidated statements of cash flows for each of the three years in the period ended December&nbsp;31, 2007</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">70</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Consolidated statements of shareholders&#146; equity for each of the three years in the period ended December&nbsp;31, 2007</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">71</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Notes to consolidated financial statements</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">72&nbsp;&#150;112</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Consent of independent registered public accounting firm</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">F-2</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Schedules:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Report of independent registered public accounting firm on financial statement schedule</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">F-3</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">I&#151;Condensed financial information of the Company</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">F-4&nbsp;&#150;&nbsp;F-7</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">All other schedules for American Express Company and subsidiaries have been omitted since the
required information is not present or not present in amounts sufficient to require submission of the schedule, or because the information required is included in the respective financial statements or notes thereto. Refer to Notes 3 and 5 to the
Consolidated Financial Statements in our 2007 Annual Report to Shareholders for information on accounts receivable reserves and loan reserves, respectively. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;* </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Consolidated Financial Statements of American Express Company (including the reports of independent registered public accounting firm) listed in the
above index, which are included in our 2007 Annual Report to Shareholders, are hereby incorporated by reference. With the exception of the pages listed in the above index, unless otherwise incorporated by reference elsewhere in this Annual Report on
Form 10-K, our 2007 Annual Report to Shareholders is not to be deemed filed as part of this report. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">F-1 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Exhibit 23.1 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B></B>We hereby consent to the
incorporation by reference in the Registration Statements (Form S-8 No.&nbsp;2-46918, No.&nbsp;2-59230, No.&nbsp;2-64285, No.&nbsp;2-73954, No.&nbsp;2-89680, No.&nbsp;33-01771, No.&nbsp;33-02980, No.&nbsp;33-28721, No.&nbsp;33-33552,
No.&nbsp;33-36442, No.&nbsp;33-48629, No.&nbsp;33-62124, No.&nbsp;33-65008, No.&nbsp;33-53801, No.&nbsp;333-12683, No.&nbsp;333-41779, No.&nbsp;333-52699, No.&nbsp;333-73111, No.&nbsp;333-38238, No.&nbsp;333-98479; and No.&nbsp;333-142710; Form S-3
No.&nbsp;2-89469, No.&nbsp;33-43268, No.&nbsp;33-50997, No.&nbsp;333-32525, No.&nbsp;333-45445, No.&nbsp;333-47085, No.&nbsp;333-55761, No.&nbsp;333-51828, No.&nbsp;333-113768, No.&nbsp;333-117835 and No.&nbsp;333-138032) of American Express Company
of our report dated February&nbsp;25, 2008, relating to the consolidated financial statements and the effectiveness of internal control over financial reporting, which appears in the Annual Report to Shareholders, which is incorporated by reference
in this Annual Report on Form 10-K. We also consent to the incorporation by reference of our report dated February&nbsp;25, 2008, relating to the financial statement schedule, which appears in this Form 10-K. <B> </B></FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0">

<TR>
<TD WIDTH="100%"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">/s/ PricewaterhouseCoopers LLP</FONT></P></TD></TR>
<TR>
<TD HEIGHT="16"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">New York, New York</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">February&nbsp;25, 2008</FONT></P></TD></TR>
</TABLE> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">F-2 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Report of Independent Registered Public Accounting Firm </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>on </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Financial Statement Schedule </B>
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">To the Board of Directors and Shareholders </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">of American
Express Company: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Our audits of the consolidated financial statements and of the effectiveness of internal control over financial reporting referred to in
our report dated February&nbsp;25, 2008 appearing in the 2007 Annual Report to Shareholders of American Express Company (which report and consolidated financial statements are incorporated by reference in this Annual Report on Form 10-K) also
included an audit of the financial statement schedule as of December&nbsp;31, 2007 and 2006 and for each of the three years in the period ended December&nbsp;31, 2007, listed in Item&nbsp;15(a)(2) of this Form 10-K. In our opinion, this financial
statement schedule presents fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements. </FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0">

<TR>
<TD WIDTH="100%"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">/s/ PricewaterhouseCoopers LLP</FONT></P></TD></TR>
<TR>
<TD HEIGHT="16"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">PricewaterhouseCoopers LLP</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:1px; margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">New York, New York</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">February&nbsp;25, 2008</FONT></P></TD></TR>
</TABLE> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">F-3 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>AMERICAN EXPRESS COMPANY AND CONSOLIDATED SUBSIDIARIES </B></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>SCHEDULE I</B>&#151;<B>CONDENSED FINANCIAL INFORMATION OF THE COMPANY </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>CONDENSED STATEMENTS OF INCOME </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>(Parent Company Only) </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>(millions) </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="79%"></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="10" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>Years Ended December&nbsp;31,</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>2007</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>2006</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>2005</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Revenues net of interest expense</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(89</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(47</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(153</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Expenses</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Human resources</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">132</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">136</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">145</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Other</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">160</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">173</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">198</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Total</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">292</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">309</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">343</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Pretax loss</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(381</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(356</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(496</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Income tax benefit</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(182</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(187</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(195</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Net loss before equity in net income of subsidiaries and affiliates</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(199</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(169</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(301</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Equity in net income of subsidiaries and affiliates</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,247</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,780</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,363</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Income from continuing operations</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,048</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,611</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,062</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">(Loss) Income from discontinued operations, net of tax</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(36</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">96</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">672</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Net income</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,012</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,707</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,734</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="font-size:120px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P
STYLE="margin-top:120px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">See Notes to Condensed Financial Information of the Parent Company on page F-7. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">F-4 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>AMERICAN EXPRESS COMPANY AND CONSOLIDATED SUBSIDIARIES </B></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>SCHEDULE I</B>&#151;<B>CONDENSED FINANCIAL INFORMATION OF THE COMPANY </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>CONDENSED BALANCE SHEETS </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>(Parent Company Only) </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>(millions, except share amounts) </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="84%"></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="6" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>December&nbsp;31,</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>2007</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>2006</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>ASSETS</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Cash and cash equivalents</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Investments</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">50</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">50</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Equity in net assets of subsidiaries and affiliates of continuing operations</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">11,588</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">10,550</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Accounts receivable, less reserves</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">20</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Land, buildings and equipment &#151; at cost, less accumulated depreciation: 2007, $27;<BR>2006, $22</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">38</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">33</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Due from subsidiaries</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5,025</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5,093</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Other assets</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,222</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">881</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Equity in net assets of subsidiaries and affiliates of discontinued operations</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">519</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">467</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Total assets</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">18,447</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">17,097</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:3px double #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:3px double #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:3px double #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:3px double #000000">&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>LIABILITIES AND SHAREHOLDERS</B><I>&#146;</I><B> EQUITY</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Accounts payable and other liabilities</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"> 672</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"> 592</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Long-term debt</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">6,746</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5,994</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Total liabilities</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">7,418</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">6,586</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Shareholders&#146; equity</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Common shares, $.20 par value, authorized 3.6 billion shares; issued and outstanding 1,158&nbsp;million shares in 2007 and 1,199&nbsp;million
shares in 2006</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">232</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">240</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Additional paid-in capital</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">10,164</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">9,638</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Retained earnings</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,075</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,153</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Accumulated other comprehensive (loss) income, net of tax:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Net unrealized securities gains</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">12</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">92</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Net unrealized derivatives (losses) gains</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(71</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">27</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Foreign currency translation adjustments</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(255</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(222</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Net unrealized pension and other postretirement benefit costs</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(128</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(417</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Total accumulated other comprehensive loss</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(442</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(520</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Total shareholders&#146; equity</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">11,029</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">10,511</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Total liabilities and shareholders&#146; equity</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">18,447</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">17,097</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:3px double #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:3px double #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:3px double #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:3px double #000000">&nbsp;</TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="margin-top:120px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">See Notes to Condensed
Financial Information of the Parent Company on page F-7. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">F-5 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>AMERICAN EXPRESS COMPANY AND CONSOLIDATED SUBSIDIARIES </B></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>SCHEDULE I</B>&#151;<B>CONDENSED FINANCIAL INFORMATION OF THE COMPANY </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>CONDENSED STATEMENTS OF CASH FLOWS </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>(Parent Company Only) </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>(millions) </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="76%"></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="10" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>Years Ended December&nbsp;31,</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>2007</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>2006</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>2005</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Cash Flows from Operating Activities</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:1px; margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Net income</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,012</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,707</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,734</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Adjustments to reconcile net income to cash provided by operating activities</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Equity in net (income) loss of subsidiaries and affiliates:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">&#150; continuing operations</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(4,247</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(3,780</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(3,363</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">&#150; discontinued operations</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">36</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(96</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(672</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Dividends received from subsidiaries and affiliates</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,708</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,479</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,474</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Other operating activities, primarily with subsidiaries</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(267</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(279</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(316</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Net cash provided by operating activities</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,242</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,031</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,857</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Cash Flows from Investing Activities</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Purchase of investments</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">&#151;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(20</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(30</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Purchase of land, buildings and equipment</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(10</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(10</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(8</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Acquisition</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">&#151;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(200</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">&#151;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Investments in subsidiaries and affiliates</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(550</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">&#151;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">&#151;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Net cash used in investing activities</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(560</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(230</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(38</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Cash Flows from Financing Activities</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Issuance of debt</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,500</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,750</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">&#151;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Principal payment of debt</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(750</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(1,000</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(498</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Issuance of American Express common shares and other</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">852</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,203</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,129</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Repurchase of American Express common shares</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(3,572</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(4,093</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(1,853</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Dividends paid</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(712</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(661</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(597</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Net cash used in financing activities</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(2,682</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(2,801</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(1,819</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">)</FONT></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Net change in cash and cash equivalents</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">&#151;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">&#151;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">&#151;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Cash and cash equivalents at beginning of year</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Cash and cash equivalents at end of year</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:3px double #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:3px double #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:3px double #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:3px double #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:3px double #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:3px double #000000">&nbsp;</TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION</B>:<B> </B></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Cash paid for interest (net of amounts capitalized) in 2007, 2006, and 2005 was $319 million, $190 million, and $246 million, respectively. Net cash
received for income taxes in 2007, 2006, and 2005 was $75 million, $216 million, and $160 million, respectively. </FONT></P> <P STYLE="margin-top:60px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">See Notes to Condensed
Financial Information of the Parent Company on page F-7. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">F-6 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>AMERICAN EXPRESS COMPANY AND CONSOLIDATED SUBSIDIARIES </B></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>SCHEDULE I</B>&#151;<B>CONDENSED FINANCIAL INFORMATION OF THE COMPANY </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>NOTES TO CONDENSED FINANCIAL INFORMATION OF THE COMPANY </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>(Parent Company Only) </B></FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">1. Principles of Consolidation </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The accompanying condensed
financial statements include the accounts of American Express Company (the &#147;Parent Company&#148;) and, on an equity basis, its subsidiaries and affiliates. Parent Company revenues and expenses, other than human resources expenses and interest
expense on long-term debt, are primarily related to intercompany transactions with subsidiaries and affiliates. These financial statements should be read in conjunction with the consolidated financial statements and the accompanying notes thereto of
American Express Company and its subsidiaries (the &#147;Company&#148;). Certain reclassifications of prior period amounts have been made to conform to the current presentation. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">On September&nbsp;18, 2007, the Company entered into an agreement to sell its international banking subsidiary, American Express Bank Ltd.
(&#147;AEB&#148;) and American Express International Deposit Company (&#147;AEIDC&#148;), a subsidiary that issues investment certificates to AEB&#146;s customers, to Standard Chartered PLC (&#147;Standard Chartered&#148;). AEIDC was contracted to
be sold to Standard Chartered, 18 months after the close of the AEB sale, through a put/call agreement. For 2007 and all prior periods presented, the operating results, assets and liabilities, and cash flows of AEB (except for certain components of
AEB that are not being sold) have been reflected as discontinued operations in the condensed financial information. AEIDC will continue to be included in continuing operations until such time as AEIDC qualifies for classification as a discontinued
operation which will occur approximately one year prior to its transfer to Standard Chartered. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">On September&nbsp;30, 2005, the Company
completed the spin-off of Ameriprise Financial, Inc. (Ameriprise), formerly known as American Express Financial Corporation, the Company&#146;s financial planning and financial services business. In addition, during the third quarter of 2005, the
Company completed certain dispositions including the sale of its tax, accounting and consulting business, American Express Tax and Business Services, Inc. (&#147;TBS&#148;). The operating results and cash flows related to Ameriprise and certain
dispositions (including TBS) have been reflected as discontinued operations in the condensed financial information. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">2. Long-term debt consists of
(millions): </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="92%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="82%"></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="5" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>December&nbsp;31,</B></FONT></TD></TR>
<TR>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>2007</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>2006</B></FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">5.40% Fixed and Floating Rate Senior Notes due 2009-2033 (a)</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5,996</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5,244</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">6.80% Subordinated Debentures due 2036 (b)</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">750</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">750</FONT></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">6,746</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5,994</FONT></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:3px double #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:3px double #000000">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:3px double #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:3px double #000000">&nbsp;</TD></TR>
</TABLE> <P STYLE="line-height:8px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(a)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">For floating rate debt issuances, the stated rate is based on the floating rates in effect at December&nbsp;31, 2007. </FONT></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(b)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">The maturity date will automatically be extended to September&nbsp;1, 2066, except in the case of (1)&nbsp;prior redemption or (2)&nbsp;default related to the debentures.
</FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Aggregate annual maturities of long-term debt for the five years ending December&nbsp;31, 2012, are as follows (millions):
2008, $0; 2009, $500; 2010, $0; 2011, $400; 2012, $0 and thereafter, $5,846. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">F-7 </FONT></P>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="toc66665_36"></A>EXHIBIT INDEX </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The following exhibits are filed as part of this Annual Report. The exhibit numbers preceded
by an asterisk (*)&nbsp;indicate exhibits electronically filed herewith. All other exhibit numbers indicate exhibits previously filed and are hereby incorporated herein by reference. Exhibits numbered 10.1 through 10.30, 10.32 through 10.43 and
10.46 through 10.48 are management contracts or compensatory plans or arrangements. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD WIDTH="92%"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;3.1</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Company&#146;s Restated Certificate of Incorporation (incorporated by reference to Exhibit 4.1 of the Company&#146;s Registration Statement on Form S-3, dated July&nbsp;31, 1997 (Commission File
No. 333-32525)).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;3.2</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Company&#146;s Certificate of Amendment of the Certificate of Incorporation (incorporated by reference to Exhibit 3.1 of the Company&#146;s Quarterly Report on Form 10-Q (Commission File No.
1-7657) for the quarter ended March 31, 2000).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;3.3</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Company&#146;s By-Laws, as amended through September 27, 2006 (incorporated by reference to Exhibit 3.1 of the Company&#146;s Current Report on Form 8-K (Commission File No. 1-7657), dated
September 27, 2006 (filed September 29, 2006)).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;4</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">The instruments defining the rights of holders of long-term debt securities of the Company and its subsidiaries are omitted pursuant to Section (b)(4)(iii)(A) of Item 601 of Regulation S-K. The
Company hereby agrees to furnish copies of these instruments to the SEC upon request.</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.1</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">American Express Company 1989 Long-Term Incentive Plan, as amended and restated (incorporated by reference to Exhibit 10.1 of the Company&#146;s Quarterly Report on Form 10-Q (Commission File
No. 1-7657) for the quarter ended March 31, 1996).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.2</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">American Express Company 1989 Long-Term Incentive Compensation Plan Master Agreement, dated February 27, 1995 (incorporated by reference to Exhibit 10.4 of the Company&#146;s Current Report on
Form 8-K (Commission File No. 1-7657), dated November 22, 2004 (filed January 28, 2005)).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.3</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Amendment, dated February 28, 2000, of American Express Company 1989 Long-Term Incentive Compensation Plan Master Agreement, dated February 27, 1995 (incorporated by reference to Exhibit 10.2 of
the Company&#146;s Quarterly Report on Form 10-Q (Commission File No. 1-7657) for the quarter ended March 31, 2000).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.4</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">American Express Company 1998 Incentive Compensation Plan, as amended through July 25, 2005 (incorporated by reference to Exhibit 10.4 of the Company&#146;s Annual Report on Form 10-K
(Commission File No. 1-7657) for the year ended December 31, 2005).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.5</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">American Express Company 1998 Incentive Compensation Plan Master Agreement, dated April&nbsp;27, 1998 (for awards made prior to January&nbsp;22, 2007) (incorporated by reference to Exhibit 10.1
of the Company&#146;s Quarterly Report on Form 10-Q (Commission File No. 1-7657) for the quarter ended September&nbsp;30, 2004).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.6</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Amendment of American Express Company 1998 Incentive Compensation Plan Master Agreement, dated April 27, 1998 (for awards made prior to January 22, 2007) (incorporated by reference to Exhibit
10.1 of the Company&#146;s Quarterly Report on Form 10-Q (Commission File No. 1-7657) for the quarter ended March 31, 2000).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.7</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">American Express Company 1998 Incentive Compensation Plan Master Agreement, dated January 22, 2007 (for awards made on or after such date) (incorporated by reference to Exhibit 10.7 of the
Company&#146;s Annual Report on Form 10-K (Commission File No. 1-7657) for the year ended December&nbsp;31, 2006).</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">E-1 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD WIDTH="90%"></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;10.8</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Form of award agreement for executive officers in connection with Performance Grant awards (a/k/a Incentive Award) under the American Express Company 1998 Incentive Compensation Plan, as
amended. (Incorporated by reference to Exhibit 10.8 of the Company&#146;s Annual Report on Form 10-K (Commission File No. 1-7657) for the year ended December 31, 2006).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;10.9</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Form of award agreement for executive officers in connection with Portfolio Grants under the American Express Company 1998 Incentive Compensation Plan, as amended (for awards made prior to
January 22, 2007) (incorporated by reference to Exhibit 10.8 to the Company&#146;s Annual Report on Form 10-K (Commission File No. 1-7657) for the year ended December 31, 2005).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;10.10</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Form of award agreement for executive officers in connection with Portfolio Grants under the American Express Company 1998 Incentive Compensation Plan, as amended (for awards made after January
22, 2007) (incorporated by reference to Exhibit 10.1 to the Company&#146;s Current Report on Form 8-K (Commission File No. 1-7657), dated January 22, 2007 (filed January 26, 2007)).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;10.11</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">American Express Company 2007 Incentive Compensation Plan, (incorporated by reference to Exhibit 10.1 of the Company&#146;s Current Report on Form 8-K (Commission File No. 1-7657), dated April
23, 2007 (filed April 27, 2007)).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;10.12</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">American Express Company 2007 Incentive Compensation Plan Master Agreement, dated April 27, 2007 (incorporated by reference to Exhibit 10.2 of the Company&#146;s Current Report on Form 8-K
(Commission File No. 1-7657), dated April 23, 2007 (filed April 27, 2007)).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">*10.13</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Form of award agreement for executive officers in connection with Portfolio Grants under the American Express Company 2007 Incentive Compensation Plan.</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">*10.14</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Form of award agreement for executive officers in connection with Performance Grant awards (a/k/a Incentive Award) under the American Express Company 2007 Incentive Compensation
Plan.</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;10.15</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Description of Compensation Payable to Non-Management Directors (incorporated by reference to Exhibit 10.1 of the Company&#146;s Current Report on Form 8-K (Commission File No. 1-7657), dated
November 21, 2005 (filed January 13, 2006)).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;10.16</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">American Express Company Deferred Compensation Plan for Directors, as amended through July&nbsp;28, 2003 (incorporated by reference to Exhibit 10.3 of the Company&#146;s Current Report on Form
8-K (Commission File No. 1-7657), dated November&nbsp;22, 2004 (filed January&nbsp;28, 2005).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;10.17</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">American Express Company 2007 Pay-for-Performance Deferral Program Document (incorporated by reference to Exhibit 10.1 of the Company&#146;s Current Report on Form 8-K (Commission File No.
1-7657), dated November 20, 2006 (filed November 22, 2006)).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;10.18</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Description of amendments to 1994 &#150; 2006 Pay-for-Performance Deferral Programs (incorporated by reference to Exhibit 10.13 of the Company&#146;s Annual Report on Form 10-K (Commission File
No. 1-7657) for the year ended December 31, 2006).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;10.19</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">American Express Company 2006 Pay-for-Performance Deferral Program Guide (incorporated by reference to Exhibit 10.1 of the Company&#146;s Current Report on Form 8-K (Commission File No. 1-7657),
dated November 21, 2005 (filed November 23, 2005)).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;10.20</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">American Express Company 2005 Pay-for-Performance Deferral Program Guide (incorporated by reference to Exhibit 10.10 of the Company&#146;s Annual Report on Form 10-K (Commission File No. 1-7657)
for the year ended December 31, 2004).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;10.21</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Description of American Express Company Pay-for-Performance Deferral Program (incorporated by reference to Exhibit 10.2 of the Company&#146;s Current Report on Form 8-K (Commission File No.
l-7657), dated November 22, 2004 (filed January 28, 2005)).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;10.22</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">American Express Company Retirement Plan for Non-Employee Directors, as amended (incorporated by reference to Exhibit 10.12 of the Company&#146;s Annual Report on Form 10-K (Commission File No.
1-7657) for the year ended December 31, 1988).</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">E-2 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD WIDTH="91%"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.23</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Certificate of Amendment of the American Express Company Retirement Plan for Non-Employee Directors dated March 21, 1996 (incorporated by reference to Exhibit 10.11 of the Company&#146;s Annual
Report on Form 10-K (Commission File No. 1-7657) for the year ended December 31, 1995).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.24</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">American Express Key Executive Life Insurance Plan, as amended (incorporated by reference to Exhibit 10.12 of the Company&#146;s Annual Report on Form 10-K (Commission File No. 1-7657) for the
fiscal year ended December 31, 1991).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.25</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Amendment to American Express Company Key Executive Life Insurance Plan (incorporated by reference to Exhibit 10.3 of the Company&#146;s Quarterly Report on Form 10-Q (Commission File No.
1-7657) for the quarter ended September 30, 1994).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.26</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Amendment to American Express Company Key Executive Life Insurance Plan, effective as of January 22, 2007 (incorporated by reference to Exhibit 10.22 of the Company&#146;s Annual Report on Form
10-K (Commission File No. 1-7657) for the year ended December 31, 2006).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.27</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">American Express Key Employee Charitable Award Program for Education (incorporated by reference to Exhibit 10.13 of the Company&#146;s Annual Report on Form 10-K (Commission File No. 1-7657) for
the year ended December&nbsp;31, 1990).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.28</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">American Express Directors&#146; Charitable Award Program (incorporated by reference to Exhibit 10.14 of the Company&#146;s Annual Report on Form 10-K (Commission File No. 1-7657) for the year
ended December 31, 1990).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.29</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">American Express Company Salary/Bonus Deferral Plan (incorporated by reference to Exhibit 10.20 of the Company&#146;s Annual Report on Form 10-K (Commission File No. 1-7657) for the year ended
December 31, 1988).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.30</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Amendment to American Express Company Salary/Bonus Deferral Plan (incorporated by reference to Exhibit 10.4 of the Company&#146;s Quarterly Report on Form 10-Q (Commission File No. 1-7657) for
the quarter ended September 30, 1994).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.31</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Tax Allocation Agreement, dated May 27, 1994, between Lehman Brothers Holdings Inc. and the Company (incorporated by reference to Exhibit 10.2 of Lehman Brothers Holdings Inc.&#146;s Transition
Report on Form 10-K (Commission File No. 1-9466) for the transition period from January 1, 1994 to November 30, 1994).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.32</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">American Express Company 1993 Directors&#146; Stock Option Plan, as amended (incorporated by reference to Exhibit 10.11 of the Company&#146;s Quarterly Report on Form 10-Q (Commission File No.
1-7657) for the quarter ended March 31, 2000).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.33</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">American Express Senior Executive Severance Plan Effective January 1, 1994 (as amended and restated through May 1, 2000) (incorporated by reference to Exhibit 10.10 of the Company&#146;s
Quarterly Report on Form 10-Q (Commission File No. 1-7657) for the quarter ended March 31, 2000).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.34</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Amendments to the American Express Senior Executive Severance Plan, effective November 26, 2001 (incorporated by reference to Exhibit 10.30 of the Company&#146;s Annual Report on Form 10-K
(Commission File No. 1-7657) for the year ended December 31, 2001).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.35</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Amendments to the American Express Senior Executive Severance Plan, effective January 22, 2007 (incorporated by reference to Exhibit 10.31 of the Company&#146;s Annual Report on Form 10-K
(Commission File No. 1-7657) for the year ended December 31, 2006).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.36</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Amendment of Long-Term Incentive Awards under the American Express Company 1979 and 1989 Long-Term Incentive Plans (incorporated by reference to Exhibit 10.6 of the Company&#146;s Quarterly
Report on Form 10-Q (Commission File No. 1-7657) for the quarter ended September 30, 1994).</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">E-3 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD WIDTH="91%"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.37</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Amendments of (i) Long-Term Incentive Awards under the American Express Company 1979 and 1989 Long-Term Incentive Plans, (ii) the American Express Senior Executive Severance Plan, (iii) the
American Express Supplemental Retirement Plan, (iv) the American Express Salary/Bonus Deferral Plan, (v) the American Express Key Executive Life Insurance Plan and (vi) the IDS Current Service Deferred Compensation Plan (incorporated by reference to
Exhibit 10.37 of the Company&#146;s Annual Report on Form 10-K (Commission File No. 1-7657) for the year ended December&nbsp;31, 1997).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.38</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">American Express Supplemental Retirement Plan Amended and Restated Effective March 1, 1995 (incorporated by reference to Exhibit 10.1 of the Company&#146;s Quarterly Report on Form 10-Q
(Commission File No. 1-7657) for the quarter ended September 30, 1999).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.39</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">American Express Supplemental Retirement Plan (as amended and restated effective July 1, 2007) (incorporated by reference to Exhibit 10.2 of the Company&#146;s Current Report on Form 8-K
(Commission File No. 1-7657), dated January 22, 2007 (filed January 26, 2007)).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.40</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">American Express Directors&#146; Stock Plan (incorporated by reference to Exhibit 4.4 of the Company&#146;s Registration Statement on Form S-8, dated December 9, 1997 (Commission File No.
333-41779)).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.41</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">American Express Annual Incentive Award Plan (incorporated by reference to Exhibit 10.6 of the Company&#146;s Quarterly Report on Form 10-Q (Commission File No. 1-7657) for the quarter ended
March 31, 2000).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.42</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Amendment to American Express Annual Incentive Award Plan, effective January 22, 2007 (incorporated by reference to Exhibit 10.38 of the Company&#146;s Annual Report on Form 10-K (Commission
File No. 1-7657) for the year ended December 31, 2006).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.43</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Agreement dated February 27, 1995 between the Company and Berkshire Hathaway Inc. (incorporated by reference to Exhibit 10.43 of the Company&#146;s Annual Report on Form 10-K (Commission File
No. 1-7657) for the year ended December 31, 1994).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.44</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Agreement dated July 20, 1995 between the Company and Berkshire Hathaway Inc. and its subsidiaries (incorporated by reference to Exhibit 10.1 of the Company&#146;s Quarterly Report on Form 10-Q
(Commission File No. 1-7657) for the quarter ended September 30, 1995).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.45</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Amendment dated September 8, 2000 to the agreement dated February 27, 1995 between the Company and Berkshire Hathaway Inc. (incorporated by reference to Exhibit 99.3 of the Company&#146;s
Current Report on Form 8-K (Commission File No. 1-7657) dated January 22, 2001).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.46</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Description of a special grant of a stock option and restricted stock award to Kenneth I. Chenault, the Company&#146;s President and Chief Operating Officer (incorporated by reference to Exhibit
10.2 of the Company&#146;s Quarterly Report on Form 10-Q (Commission File No. 1-7657) for the quarter ended June 30, 1999).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.47</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">American Express Company 2003 Share Equivalent Unit Plan for Directors, as adopted and effective April&nbsp;28, 2003 (incorporated by reference to Exhibit 10.1 of the Company&#146;s Quarterly
Report on Form 10-Q (Commission File No. 1-7657) for the quarter ended March&nbsp;31, 2003).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.48</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Description of 2007 Base Salaries of Named Executive Officers (incorporated by reference to Exhibit 10.44 of the Company&#146;s Annual Report on Form 10-K (Commission File No. 1-7657) for the
year ended December 31, 2006).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.49</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Separation and Distribution Agreement between American Express Company and Ameriprise Financial, Inc., dated August 24, 2005 (incorporated by reference to Exhibit 10.1 of the Company&#146;s
Current Report on Form 8-K (Commission File No. 1-7657), dated August 24, 2005 (filed August 30, 2005)).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">10.50</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Employee Benefits Agreement, dated as of September 30, 2005, by and between American Express Company and Ameriprise Financial, Inc. (incorporated by reference to Exhibit 10.1 of the
Company&#146;s Current Report on Form 8-K (Commission File No. 1-7657), dated October 6, 2005).</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">E-4 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD WIDTH="90%"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;10.51</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Tax Allocation Agreement, dated as of September 30, 2005, by and between American Express Company and Ameriprise Financial, Inc. (incorporated by reference to Exhibit 10.2 of the Company&#146;s
Current Report on Form 8-K (Commission File No. 1-7657), dated October 6, 2005).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">*12</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Computation in Support of Ratio of Earnings to Fixed Charges.</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">*13</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Portions of the Company&#146;s 2007 Annual Report to Shareholders that are incorporated herein by reference.</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">*21</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Subsidiaries of the Company.</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">*23.1</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP><FONT FACE="Times New Roman" SIZE="2">Consent of PricewaterhouseCoopers LLP (contained on page F-2 of this Annual Report on Form 10-K).</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">*31.1</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Certification of Kenneth I. Chenault, Chief Executive Officer, pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">*31.2</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Certification of Daniel T. Henry, Chief Financial Officer, pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">*32.1</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Certification of Kenneth I. Chenault, Chief Executive Officer, and Daniel T. Henry, Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">E-5 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"><B>UNITED STATES </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="5"><B>SECURITIES AND EXCHANGE COMMISSION </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="3"><B>WASHINGTON, D.C. 20549 </B></FONT></P> <P
STYLE="font-size:60px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:60px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"><B>FORM 10-K </B></FONT></P> <P STYLE="margin-top:10px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="3"><B>ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF </B></FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="3"><B>THE SECURITIES EXCHANGE ACT OF 1934 </B></FONT></P> <P STYLE="font-size:36px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="49%"></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD WIDTH="47%"></TD></TR>
<TR>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>For the fiscal year ended December&nbsp;31, 2007</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Commission File No. 1-7657</B></FONT></TD></TR>
</TABLE> <P STYLE="font-size:60px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P
STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:60px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>American Express Company </B>
</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>(Exact name of Company as specified in charter) </B></FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>EXHIBITS </B></FONT></P>
</BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.13
<SEQUENCE>2
<FILENAME>dex1013.txt
<DESCRIPTION>FORM OF AWARD AGREEMENT FOR EXECUTIVE OFFICERS
<TEXT>
<PAGE>
                                                        EXHIBIT 10.13
                           AMERICAN EXPRESS COMPANY
                       2007 INCENTIVE COMPENSATION PLAN
                           PORTFOLIO GRANT 2008-2010
                                      TO


          ----------------------------------------------------------
                               Name of Employee



- ------------------------------                ---------------------------------
         Award Date                            Expiration Date of Award Period


                                       $
          ----------------------------------------------------------
                              Total Target Value


         We are pleased to inform you that, pursuant to the Company's 2007
Incentive Compensation Plan, as amended (the "Plan"), the Compensation and
Benefits Committee (the "Committee") of the Board of Directors (the "Board")
of American Express Company (the "Company"), made an award of a portfolio
grant to you as hereinafter set forth (the "Award") under the Plan as of the
award date specified above (the "Award Date"). The Award is subject to the
Detrimental Conduct Provisions established by the Committee, and as from time
to time amended.

1. GENERAL. You have been granted the Award subject to the provisions of the
Plan and the terms, conditions and restrictions set forth in this agreement
(this "Agreement"). The Total Target Value of the Award consists of the Target
Values of four components: the Target Value of the Average Annual EPS
Incentive Component (the "Average Annual EPS Target Value"); the Target Value
of the Average Annual Net Revenue Incentive Component (the "Average Annual Net
Revenue Target Value"); the Target Value of the Average Annual ROE Incentive
Component (the "Average Annual ROE Target Value"); and the Target Value of the
Relative Total Shareholder Return Component (the "Relative TSR Target Value").
Each component's Target Value is 25% of the Total Target Value. The period
beginning January 1, 20__ and ending on the expiration date specified above
(the "Expiration Date") is the "Award Period." The Total Target Value, or any
of its components, may be reduced by the Committee in its sole discretion,
which may include but need not be limited to, situations where on the last day
of the Award Period you are engaged in Related Employment, as that term is
defined in the Plan. The Schedule A Value (as that term is defined below), if
any, of each component will be determined as specified in Paragraph 3.

2. REQUIREMENT OF EMPLOYMENT. Except as otherwise provided in Paragraphs 4 and
6, your rights to the Cash Value and the Number of Restricted Shares or
Restricted Stock Units, if any (as those terms are defined below) under
Paragraph 5 shall be provisional and shall be canceled in whole or in part, as
determined by the Committee in its sole discretion if your continuous
employment with the Company and its Affiliates (as that term is defined in the
Plan) or your Related Employment (as that term is defined in the Plan)
(hereinafter collectively referred to as "employment with the American Express
companies"), terminates for any reason on or before the Payment Date set forth
in Paragraph 5. Whether and as of what date your employment with the American
Express companies shall terminate if you are granted a leave of absence or
commence any other break in employment intended by your employer to be
temporary, shall be determined by the Committee in its sole discretion.

                                  Page 1 of 12
3. DETERMINATION OF THE SCHEDULE A VALUES, INITIAL VALUE, FINAL VALUE, CASH
VALUE AND THE NUMBER OF RESTRICTED SHARES OR RESTRICTED STOCK UNITS.

(a) Except as otherwise provided in this Paragraph 3 and in Paragraphs 2,
4 and 6, there shall be paid to you in accordance with Paragraph 5, the sum,
as may be adjusted by the Committee pursuant to Subparagraph 3(i), of:

               (i) the Schedule A Value of the Average Annual EPS Incentive
          Component (the "Average Annual EPS Schedule A Value") as of the last
          day of the Award Period, if any, as provided in Subparagraph 3(b);

               (ii) the Schedule A Value of the Average Annual Net Revenue
          Incentive Component (the "Average Annual Net Revenue Schedule A
          Value") as of the last day of the Award Period, if any, as provided
          in Subparagraph 3(c);

               (iii) the Schedule A Value of the Average Annual ROE Incentive
          Component (the "Average Annual ROE Schedule A Value") as of the last
          day of the Award Period, if any, as provided in Subparagraph 3(d);
          and

               (iv) the Schedule A Value of the Relative Total Shareholder
          Return Component (the "Relative TSR Schedule A Value") as of the
          last day of the Award Period, if any, as provided in Subparagraph
          3(e).

(b) AVERAGE ANNUAL EPS SCHEDULE A VALUE. Except as otherwise provided in this
Paragraph 3, the Average Annual EPS Schedule A Value as of the last day of the
Award Period will be equal to (Xb) times (Yb), where (Xb) equals the Average
Annual EPS Incentive Payout Percentage, if any, determined by the Committee in
its sole discretion based on the Average Annual EPS (as that term is defined
below) of the Company or of a unit of the Company, as the case may be,
pursuant to the formula provided in Schedule A to this Agreement, and where
(Yb) is the Average Annual EPS Target Value. However, in no event will (Xb) be
greater than the Maximum Average Annual EPS Value, which equals the maximum
Average Annual EPS Incentive Payout Percentage set forth in Schedule A to this
Agreement, times the Average Annual EPS Target Value.

(c) AVERAGE ANNUAL NET REVENUE SCHEDULE A VALUE. Except as otherwise provided
in this Paragraph 3, the Average Annual Net Revenue Schedule A Value as of the
last day of the Award Period will be equal to (Xc) times (Yc), where (Xc)
equals the Average Annual Net Revenue Incentive Payout Percentage, if any,
determined by the Committee in its sole discretion based on the Average Annual
Net Revenue (as that term is defined below) of the Company or of a unit of the
Company, as the case may be, pursuant to the formula provided in Schedule A to
this Agreement, and where (Yc) is the Average Annual Net Revenue Target Value.
However, in no event will (Xc) be greater than the Maximum Average Annual Net
Revenue Value, which equals the maximum Average Annual Net Revenue Incentive
Payout Percentage set forth in Schedule A to this Agreement, times the Average
Annual Net Revenue Target Value.


                                 Page 2 of 12

(d) AVERAGE ANNUAL ROE SCHEDULE A VALUE. Except as otherwise provided in this
Paragraph 3, the Average Annual ROE Schedule A Value as of the last day of the
Award Period will be equal to (Xd) times (Yd), where (Xd) equals the Average
Annual ROE Incentive Payout Percentage, if any, determined by the Committee in
its sole discretion based on the Average Annual ROE (as that term is defined
below) of the Company or of a unit of the Company, as the case may be,
pursuant to the formula provided in Schedule A to this Agreement, and where
(Yd) is the Average Annual ROE Target Value. However, in no event will (Xd) be
greater than the Maximum Average Annual ROE Value, which equals the maximum
Average Annual ROE Incentive Payout Percentage set forth in Schedule A to this
Agreement, times the Average Annual ROE Target Value.

(e) RELATIVE TSR SCHEDULE A VALUE. Except as otherwise provided in this
Paragraph 3, the Relative TSR Schedule A Value as of the last day of the Award
Period will be equal to (Xe) times (Ye), where (Xe) equals the Relative TSR
Incentive Payout Percentage, if any, determined by the Committee in its sole
discretion based on a comparison of the Amex TSR and the S&P 500 TSR, pursuant
to the formula provided in Schedule A to this Agreement, and where (Ye) is the
Relative TSR Target Value. However, in no event will (Xe) be greater than the
Maximum TSR Value, which equals the maximum Relative TSR Incentive Payout
Percentage set forth in Schedule A to this Agreement, times the Relative TSR
Target Value.

(f) CALCULATION. In the application of Schedule A to this Agreement after the
end of the Award Period for purposes of determining the Schedule A Values
pursuant to Subparagraphs 3(b), (c), (d) and (e):

               (i) if the Average Annual EPS is less than the level needed to
          have some Average Annual EPS Schedule A Value, there shall be no
          Average Annual EPS Schedule A Value; and if the Average Annual EPS
          is equal to or greater than the level to have some Average Annual
          EPS Schedule A Value, but less than or equal to the maximum level,
          and the Average Annual EPS actually attained is not represented in
          the table set forth on Schedule A, then the Average Annual EPS
          Schedule A Value shall be determined by straight-line interpolation
          from the amounts specified in such table immediately less than and
          greater than the Average Annual EPS actually attained;

               (ii) if the Average Annual Net Revenue is less than the level
          needed to have some Average Annual Net Revenue Schedule A Value,
          there shall be no Average Annual Net Revenue Schedule A Value; and
          if the Average Annual Net Revenue is equal to or greater than the
          level to have some Average Annual Net Revenue Schedule A Value, but
          less than or equal to the maximum level, and the Average Annual Net
          Revenue actually attained is not represented in the table set forth
          on Schedule A, then the Average Annual Net Revenue Schedule A Value
          shall be determined by straight-line interpolation from the amounts
          specified in such table immediately less than and greater than the
          Average Annual Net Revenue actually attained;

               (iii) if the Average Annual ROE is less than the level needed
          to have some Average Annual ROE Schedule A Value, there shall be no
          Average Annual ROE Schedule A Value; and if the Average Annual ROE
          is equal to or greater than the level to have some Average Annual
          ROE Schedule A Value, but less than or equal to the maximum level,
          and the Average Annual ROE actually attained is not represented in
          the table set forth on Schedule A, then the Average Annual ROE
          Schedule A Value shall be determined by straight-line interpolation
          from the amounts specified in such table immediately less than and
          greater than the Average Annual ROE actually attained; and

                                 Page 3 of 12


               (iv) if the difference between the Amex TSR and the S&P 500 TSR
          is less than the level needed to have some Relative TSR Schedule A
          Value, there shall be no Relative TSR Schedule A Value; and if the
          difference between the Amex TSR and the S&P 500 TSR is equal to or
          greater than the level to have some Relative TSR Schedule A Value,
          but less than or equal to the maximum level, and the actual
          difference between the Amex TSR and the S&P 500 TSR is not
          represented in the table set forth on Schedule A, then the Relative
          TSR Schedule A Value shall be determined by straight-line
          interpolation from the amounts specified in such table immediately
          less than and greater than the actual difference between the Amex
          TSR and the S&P 500 TSR.

(g) DEFINITIONS. For purposes of this Award, the following terms shall have
the following meanings (which will take into account, in each case, the
expenses and other financial effect for the applicable year(s) of portfolio
grants under the Plan except as adjusted by the application of Subparagraphs
3(h) and 3(i)).

               (i) "Net Revenue" means, for any given year, the total revenues
          of the Company or of a segment or other part of the Company, as the
          case may be, for such year, as reported by the Company.

               (ii) "Average Annual Net Revenue" means, for the Award Period,
          the sum of the Net Revenue for every year during the Award Period,
          divided by 3.

               (iii) "Net Income" means, for any given year, the after-tax net
          income (or loss) of the Company or of a segment or other part of the
          Company, as the case may be, for such year as adjusted below, as
          reported by the Company. The calculation of Net Income for any given
          year will be adjusted to exclude:

                o reported cumulative effect of accounting changes;
                o reported income and losses from discontinued operations; and

                o reported extraordinary gains and losses as determined under
                  generally accepted accounting principles.

               (iv) "Earnings Per Share" means, for any given year, the
          diluted earnings (or loss) per share of the Company for such year,
          as determined by the Company. The calculation of Earnings Per Share,
          for any given year, will be adjusted in the same fashion as Net
          Income for such year.

               (v) "Average Annual EPS" means, for the Award Period, the sum
          of the Earnings Per Share for every year during the Award Period,
          divided by 3.

                                 Page 4 of 12

               (vi) "Average Annual Shareholders' Equity" means, for any given
          year, the sum of the total shareholders' equity of the Company or of
          a segment or other part of the Company, as the case may be, as of
          the first day of such year and as of the end of each month during
          such period (each as reported by the Company), divided by 13.

               (vii) "Annual Return on Equity" means, for any given year, the
          Net Income for such year divided by the Average Annual Shareholders'
          Equity for such year.

               (viii) "Average Annual ROE" means, for the Award Period, the
          sum of the Annual Return on Equity for every year during the Award
          Period, divided by 3.

               (ix) "Amex Total Shareholder Return" or "Amex TSR" means the
          compound annual growth rate, expressed as a percentage with one
          decimal point, in the value of a share of common stock in the
          Company due to stock appreciation and dividends, assuming dividends
          are reinvested, during the Award Period. For this purpose, the
          "Beginning Stock Price" shall mean the average closing sales prices
          of the Company's common stock on the New York Stock Exchange
          Composite Transaction Tape for the trading days in the month of
          December immediately preceding the beginning of the Award Period;
          and, the "Ending Stock Price" shall mean the average closing sales
          prices of the Company's common stock on the New York Stock Exchange
          Composite Transaction Tape for the trading days in the month of
          December immediately preceding the Expiration Date. Where "Y" is the
          number of fractional Shares resulting from the deemed reinvestment
          of dividends paid during the Award Period, the Amex TSR is
          calculated as follows:

                        ((ENDING STOCK PRICE x (1 + Y))  1
                        ((----------------------------) --- )  -1
                        ((BEGINNING STOCK PRICE       )  3  )

               (x) "S&P 500 Total Shareholder Return" or "S&P 500 TSR" means
          the compound annual growth rate, expressed as a percentage with one
          decimal point, in the value of the S&P 500 Index during the Award
          Period, as determined from information publicly reported by Standard
          & Poors Company (or the entity that publishes such other index, as
          the case may be).

(h) To the extent permissible for purposes of Section 162(m) of the Internal
Revenue Code of 1986, as amended (the "Code"), in the event of any change in
the corporate capitalization of the Company, such as by reason of any stock
split, or a material corporate transaction, such as any merger of the Company
into another corporation, any consolidation of the Company and one or more
corporations into another corporation, any separation of the Company
(including a spin-off or other distribution of stock or property by the
Company), any reorganization of the Company (whether or not such
reorganization comes within the definition of such term in Section 368 of the
Code), or any partial or complete liquidation by the Company, other than a
normal cash dividend, if the Committee shall determine that such a change
equitably requires an adjustment in the calculation or terms of the Average
Annual ROE, the Average Annual Net Revenue, the Average Annual EPS or the
Relative Total Shareholder Return Component under this Award, on the grounds
that any such change would produce an unreasonable value, such equitable
adjustment will be made by the Committee. Any such determination by the
Committee under this Subparagraph 3(h) shall be final, binding and conclusive.

                                 Page 5 of 12


               (i) As soon as practicable after the last day of the Award
          Period, the Committee may determine, in its sole discretion, that
          the sum of the Schedule A Values (as initially determined in
          Subparagraphs 3(b), (c), (d) and (e)) may be adjusted downward (that
          is, to a value of zero), but in no event upward, as follows:

                    (i) YOUR UNIT'S RESULTS. Downward by a percentage (ranging
               from 0-100%) of such initially determined sum, based on such
               criteria as the Committee shall deem appropriate relating to
               your unit's results, with such resultant sum being the "Initial
               Value"; provided that any such determination by the Committee
               need not be made in a uniform manner and may be made
               selectively among holders of awards of portfolio grants in your
               unit, whether or not such award holders are similarly situated.

                    (ii) YOUR INDIVIDUAL RESULTS. The Initial Value may be
               adjusted further downward by a percentage (ranging from 0-100%)
               of such Initial Value after the application of Subparagraph
               3(k)(i), based on such criteria as the Committee shall deem
               appropriate relating to your individual results, with such
               final resultant sum being the "Final Value" (except as
               otherwise provided by Paragraph 8); provided that any such
               determination by the Committee need not be made in a uniform
               manner and may be made selectively among holders of awards of
               portfolio grants, whether or not such award holders are
               similarly situated.

In no event may the Committee amend any provision hereof so as to increase or
otherwise adjust upward the Schedule A Value of any component.

(j) Subject to the limitations set forth in Paragraph 8, the Committee shall
determine the Schedule A Values, the Initial Value and the Final Value
pursuant to this Agreement, and such determinations by the Committee shall be
final, binding and conclusive upon you and all persons claiming under or
through you.

(k) The Committee shall determine in its own discretion what portion of the
Final Value, if any, shall be payable in cash (the "Cash Value"), and what
portion shall be denominated in Restricted Shares or Restricted Stock Units of
the Company ("the RSA" or "the RSU"), in accordance with Paragraph 5 below.
The RSA or the RSU shall have the terms substantially as set forth in the form
of Restricted Share or Restricted Stock Unit awards granted generally under
the Plan, or its successor, except that the RSA or the RSU shall vest pursuant
to a period determined in the Committee's discretion, except that such vesting
period shall not be less than one year from date of grant, and be
forfeitable only if your employment with the American Express companies
terminates by reason of voluntary resignation or terminates for cause (that
is, violation of the Code of Conduct as in effect from time to time) prior to
the applicable vesting dates. The number of restricted shares or restricted
stock units of the Company comprising the RSA or the RSU (the "Number of
Restricted Shares" or the "Number of Restricted Stock Units") shall be
determined by dividing such portion of the Final Value so designated by the
Committee, if any, by the closing price of the shares on the date that the
Committee approves payout of the Awards, and shall be payable in the form of
an RSA or an RSU in accordance with Paragraph 5 below.

                                 Page 6 of 12


4. DEATH, DISABILITY OR RETIREMENT.

(a) If, on or before the Payment Date set forth in Subparagraph 5(b), but
during a period when you have been in continuous employment with the American
Express companies since the Award Date, you terminate your employment with the
American Express companies by reason of disability (as that term is defined in
the Plan) at any time following the Award Date or you die at any time
following the Award Date, you will be entitled to that proportion of the Final
Value as the number of full months which have elapsed between January 1, 2008
and the end of the month in which your termination of employment by reason of
death or such disability occurs (not to exceed 36) bears to 36, and for this
purpose, to the extent not otherwise previously determined by the Committee,
in the event of your disability or death, the Final Value shall be calculated
by applying the rate at which the expense for the Award was being accrued for
purposes of the Company's annual audited financial statement at the end of the
last completed calendar quarter prior to your disability or death, as
applicable. Such amount, if any, shall be payable as soon as practicable
thereafter, unless otherwise determined by the Committee, in cash, common
shares of the Company, or other property, or any combination thereof, and you
and all others claiming under or through you shall not be entitled to receive
any other amounts under this Award.

(b) If, on or before the Payment Date set forth in Subparagraph 5(b) but
during a period when you have been in continuous employment with the American
Express companies since the Award Date, you terminate your employment with the
American Express companies by reason of retirement (as that term is defined by
the Committee), and such event occurs more than one year after the Award Date,
you generally will be entitled to receive that proportion of the Final Value
as the number of full months which have elapsed between January 1, 2008 and
the end of the month in which your termination of employment by reason of such
retirement occurs (not to exceed 36) bears to 36, unless such termination
occurs following the attainment of age 60, in which case you will be entitled
to receive 50% of the Final Value you would otherwise forfeit under the above
formula, or, unless such termination occurs following attainment of age 62, in
which case you will be entitled to 100% of the Final Value. The Final Value
for this purpose shall be determined after the last day of the Award Period in
the normal course in accordance with Paragraph 3. Such amount, if any, shall
be payable in cash, Restricted Shares or Restricted Stock Units, as described
in Paragraph 3(k) above, or other property, or any combination thereof, after
the Award Period in accordance with Paragraphs 5 and 6, and you and all others
claiming under or through you shall not be entitled to receive any other
amounts under this Award.

5. PAYMENT OF AWARD.

(a) As soon as practicable after the last day of the Award Period, or the
earlier date your continuous employment with American Express companies
terminates by reason of disability or death in accordance with Paragraph 4,
but prior to payment in respect of the Award, the Committee shall determine
whether the conditions of Paragraph 2, and Paragraph 3 or 4, have been met
and, if so, shall ascertain the Final Value, Cash Value and the Number of
Restricted Shares or the Number of Restricted Stock Units, if any, in
accordance with Paragraph 3 or 4, as the case may be.

                                 Page 7 of 12

(b) If the Committee determines that there is no Average Annual EPS Schedule A
Value, no Average Annual Net Revenue Schedule A Value, no Average Annual ROE
Schedule A Value and no Relative TSR Schedule A Value, then this Award will be
canceled. If the Committee determines that there is some Average Annual EPS
Schedule A Value, Average Annual Net Revenue Schedule A Value, Average Annual
ROE Schedule A Value or Relative TSR Schedule A Value, however, the Cash Value
as determined pursuant to Paragraph 3 shall become payable to you in cash, and
the Number of Restricted Shares or the Number of Restricted Stock Units shall
be issued to you in the form of a Restricted Share or Restricted Stock Unit
award under the Plan, or its successor, except that the RSA or the RSU shall
vest pursuant to a period determined in the Committee's discretion, and such
vesting period shall not be less than one year from date of grant, or other
property, or any combination thereof, as soon as practicable following
_______ __, 20__, but in no event later than 90 days thereafter (or at such
other time or times as the Committee shall determine as provided in Paragraph
7) (the "Payment Date").

6. TERMINATION OF EMPLOYMENT AFTER THE AWARD PERIOD BUT ON OR BEFORE THE
PAYMENT DATE. If, after the last day of the Award Period and on or before the
Payment Date specified in Subparagraph 5(b), but during a period when you have
been in continuous employment with the American Express companies since the
Award Date, your employment terminates with the American Express companies for
any reason other than death, disability or retirement as set forth in
Paragraph 4, then you and all others claiming under or through you shall not
be entitled to receive any amounts under this Award, except as otherwise
determined by the Committee in its sole discretion.

7. DEFERRAL OR ACCELERATION OF PAYMENT OF AWARD. Any payments to be made under
this Award may be deferred or accelerated in such manner as the Committee
shall determine; provided, however, that any such deferral or acceleration
must comply with the applicable requirements of Section 409A of the Code. As
to such a deferral of payment, any amount paid in excess of the amount that
was originally payable to you under this Agreement will be based on a
reasonable interest rate as determined by the Committee, and as to such an
acceleration of payment to you under this Agreement, any amount so paid will
be discounted to reasonably reflect the time value of money as determined by
the Committee.

8. CHANGE IN CONTROL.

                  (a) Notwithstanding anything in this Agreement to the
contrary (except for the provision dealing with a limitation under Section
280G of the Code, and except as otherwise provided by Paragraph 8(b) below),
if there is a Change in Control (as defined below) prior to the payment of the
Award under the Agreement, your Final Value of the Award determined under
Section 3(i)(ii) of the Agreement may not be less than the Total Target Value
of the Award multiplied by the Average Payout Percentage (as defined below).

                  (b) Notwithstanding anything in this Agreement to the
contrary (except for the provision dealing with a limitation under Section
280G of the Code), if you have not received payment under the Agreement and,
within two years after the date of a Change in Control (as defined below), you
experience a termination of employment that would otherwise entitle you to
receive the payment of severance benefits under the provisions of the
severance plan that is in effect and in which you participate as of the date
of such Change in Control, (i) you shall immediately be 100% vested in the
Award; (ii) the Final Value of the Award will equal the Total Target Value of
the Award multiplied by the Average Payout Percentage (as defined below), but
prorated based on (a) the total number of full and partial months of the Award
Period which have elapsed between (X) January 1, 20__, and (Y) the date of
such termination of employment (not to exceed 36), divided by (b) the total
number of months in the Award Period; and (iii) such value of the Award shall
be paid to you in cash within five days after the date of such termination of
employment.

                                 Page 8 of 12

                  (c) "Average Payout Percentage" means the average of the
payout percentages for your unit under the two portfolio grant awards that
were paid by the Company immediately preceding the date of such Change in
Control.

                  (d) A "Change in Control" has that meaning as defined in
American Express Senior Executive Severance Plan, as amended from time to
time.

                  (e) The Committee may not amend or delete this Paragraph 8
of this Agreement in a manner that is detrimental to you, without your written
consent.

9. TAX WITHHOLDING AND FURNISHING OF INFORMATION. There shall be withheld from
any payment of cash or vesting of restricted shares or restricted stock units
under this Award, such amount, if any, as the Company and/or your employer
determines is required by law, including, but not limited to, U.S. federal,
state, local or foreign income, employment or other taxes incurred by reason
of making of the Award or of such payment. It shall be a condition to the
obligation of the Company to make payments under this Award that you (or those
claiming under or through you) promptly provide the Company and/or your
employer with all forms, documents or other information reasonably required by
the Company and/or your employer in connection with the Award.

10. RIGHTS NOT ASSIGNABLE. Except as otherwise determined by the Committee in
its sole discretion, your rights and interests under the Award and the Plan
may not be sold, assigned, transferred, or otherwise disposed of, or made
subject to any encumbrance, pledge, hypothecation or charge of any nature,
except that you may designate a beneficiary pursuant to Paragraph 11. If you
(or those claiming under or through you) attempt to violate this Paragraph 10,
such attempted violation shall be null and void and without effect, and the
Company's obligation to make any further payments to you (or those claiming
under or through you) hereunder shall terminate.

11. BENEFICIARY DESIGNATION. Subject to the provisions of the Plan, you may,
by completing a form acceptable to the Company and returning it to the
Corporate Secretary's Office, at 200 Vesey Street, New York, New York 10285,
name a beneficiary or beneficiaries to receive any payment to which you may
become entitled under this Agreement in the event of your death. You may
change your beneficiary or beneficiaries from time to time by submitting a new
form to the Corporate Secretary's Office at the same address. If you do not
designate a beneficiary, or if no designated beneficiary is living on the date
any amount becomes payable under this Agreement, such payment will be made to
the legal representatives of your estate, which will be deemed to be your
designated beneficiary under this Agreement.

                                 Page 9 of 12

12. ADMINISTRATION. Any action taken or decision made by the Company, the
Board or the Committee or its delegates arising out of or in connection with
the construction, administration, interpretation or effect of the Plan or this
Agreement shall lie within its sole and absolute discretion, as the case may
be, and shall be final, conclusive and binding upon you and all persons
claiming under or through you. By accepting this Award or other benefit under
the Plan, you and each person claiming under or through you shall be
conclusively deemed to have indicated acceptance and ratification of, and
consent to, any action taken or decision made under the Plan by the Company,
the Board or the Committee or its delegates.

13. CHANGE IN CONTROL PAYMENTS. This Paragraph shall apply in the event of
Change in Control (as defined in the American Express Senior Executive
Severance Plan, as amended from time to time).

                  (a) In the event that any payment or benefit received or to
be received by you hereunder in connection with a Change in Control or
termination of your employment (such payments and benefits, excluding Gross-Up
Payment (as hereinafter defined), being hereinafter referred to collectively
as the "Payments"), will be subject to the excise tax referred to in Section
4999 of the Code (the "Excise Tax"), then (i) in the case you are classified
in Band 70 (or its equivalent) or above immediately prior to such Change in
Control (a "Tier 1 Employee"), the Company shall pay to you, within five days
after receipt by you of the written statement referred to in Subparagraph (e),
an additional amount (the "Gross-Up Payment") such that the net amount
retained by you, after deduction of any Excise Tax on the Payments and any
federal, state and local income and employment taxes and Excise Tax upon the
Gross-Up Payment, shall be equal to the Payments and (ii) in the case you are
other than a Tier 1 Employee, the Payments shall be reduced to the extent
necessary so that no portion of the Payments is subject to the Excise Tax but
only if (A) the net amount of all Total Payments (as hereinafter defined), as
so reduced (and after subtracting the net amount of federal, state and local
income and employment taxes on such reduced Total Payments), is greater than
or equal to (B) the net amount of such Total Payments without any such
reduction (but after subtracting the net amount of federal, state and local
income and employment taxes on such Total Payments and the amount of Excise
Tax to which you would be subject in respect of such unreduced Total
Payments); provided, however, that you may elect in writing to have other
components of your Total Payments reduced prior to any reduction in the
Payments hereunder.

                  (b) For purposes of determining whether the Payments will be
subject to the Excise Tax, the amount of such Excise Tax and whether any
Payments are to be reduced hereunder: (i) all payments and benefits received
or to be received by you in connection with such Change in Control or the
termination of your employment, whether pursuant to the terms of this
Agreement or any other plan, arrangement or agreement with the Company, any
Person (as such term is defined in the Company's Senior Executive Severance
Plan) whose actions result in such Change in Control or any Person affiliated
with the Company or such Person (all such payments and benefits, excluding the
Gross-Up Payment and any similar gross-up payment to which a Tier 1 Employee
may be entitled under any such other plan, arrangement or agreement, being
hereinafter referred to as the "Total Payments"), shall be treated as
"parachute payments" (within the meaning of Section 280G(b)(2) of the Code)
unless, in the opinion of the firm serving, immediately prior to the Change in
Control, as the Company's independent auditors, or if that firm refuses to
serve, by another qualified firm, whether or not serving as independent
auditors, designated by the Administration Committee under the American

                                Page 10 of 12

Express Senior Executive Severance Plan (the "Firm"), such payments or
benefits (in whole or in part) do not constitute parachute payments, including
by reason of Section 280G(b)(2)(A) or Section 280G(b)(4)(A) of the Code; (ii)
no portion of the Total Payments the receipt or enjoyment of which you shall
have waived at such time and in such manner as not to constitute a "payment"
within the meaning of Section 280G(b) of the Code shall be taken into account;
(iii) all "excess parachute payments" within the meaning of Section 280G(b)(l)
of the Code shall be treated as subject to the Excise Tax unless, in the
opinion of the Firm, such excess parachute payments (in whole or in part)
represent reasonable compensation for services actually rendered (within the
meaning of Section 280G(b)(4)(B) of the Code) in excess of the Base Amount
(within the meaning of Section 280G(b)(3) of the Code) allocable to such
reasonable compensation, or are otherwise not subject to the Excise Tax; and
(iv) the value of any noncash benefits or any deferred payment or benefit
shall be determined by the Firm in accordance with the principles of Sections
280G(d)(3) and (4) of the Code and regulations or other guidance thereunder.
For purposes of determining the amount of your Gross-Up Payment and whether
your Payments shall be reduced, you shall be deemed to pay federal income tax
at the highest marginal rate of federal income taxation (and state and local
income taxes at the highest marginal rate of taxation in the state and
locality of your residence, net of the maximum reduction in federal income
taxes which could be obtained from deduction of such state and local taxes) in
the calendar year in which the Gross-Up Payment is to be made (if you are a
Tier 1 Employee) or in which the Payments are made (if you are other than a
Tier 1 Employee). The Firm will be paid reasonable compensation by the Company
for its services.

                  (c) In the event that the Excise Tax is finally determined
to be less than the amount taken into account hereunder in calculating the
Gross-Up Payment, then you will be required to repay to the Company on the
fifth business day after demand an amount equal to the excess of the earlier
payment over the redetermined amount (the "Excess Amount"), together with
interest on such amount at the lowest applicable federal rate (as defined in
Section 1274(d) of the Code or any successor provision thereto), compounded
semi-annually (the "Section 1274 Rate"), from the date of your receipt of such
Excess Amount until the date of such repayment (or such lesser rate (including
zero) as may be designated by the Firm such that the Excess Amount and such
interest will not be treated as a parachute payment as previously defined). In
the event that the Excise Tax is finally determined to exceed the amount taken
into account hereunder in calculating the Gross-Up Payment (including by
reason of any payment the existence or amount of which cannot be determined at
the time of the Gross-Up Payment), within five business days of such
determination, the Company will pay to you an additional amount, together with
interest thereon from the date such additional amount should have been paid to
the date of such payment, at the Section 1274 Rate (or such lesser rate
(including zero) as may be designated by the Firm such that the amount of such
deficiency and such interest will not be treated as a parachute payment as
previously defined). You and the Company shall each reasonably cooperate with
the other in connection with any administrative or judicial proceedings
concerning the amount of any Gross-Up Payment.

                  (d) As soon as practicable following a Change in Control,
the Company shall provide to you if you are a Tier 1 Employee or it is
proposed that your Payments be reduced, a written statement setting forth the
manner in which your Total Payments were calculated and the basis for such
calculations, including, without limitation, any opinions or other advice the
Company has received from the Firm or other advisors or consultants (and any
such opinions or advice which are in writing shall be attached to the
statement).

                                Page 11 of 12

14. MISCELLANEOUS. Neither you nor any person claiming under or through you
shall have any right or interest, whether vested or otherwise, in the Plan or
the Award, unless and until all of the terms, conditions and provisions of the
Plan and this Agreement shall have been complied with. In addition, neither
the adoption of the Plan nor the execution of this Agreement shall in any way
affect the rights and powers of any person to dismiss or discharge you at any
time from employment with the American Express companies. Notwithstanding
anything herein to the contrary, neither the Company nor any of its Affiliates
(as that term is defined in the Plan) nor their respective officers,
directors, employees or agents shall have any liability to you (or those
claiming under or through you) under the Plan, this Agreement or otherwise on
account of any action taken, or decision not to take any action made, by any
of the foregoing persons with respect to the business or operations of the
Company or any of its Affiliates (as that term is defined in the Plan),
despite the fact that any such action or decision may adversely affect in any
way whatsoever Average Annual Shareholders' Equity, Earnings Per Share, Net
Income or other financial measures or amounts which are accrued or payable or
any of your other rights or interests under this Agreement.

15. GOVERNING LAW. The validity, construction, interpretation, administration
and effect of this Agreement shall be governed by the substantive laws, but
not the choice of law rules, of the State of New York.

                            AMERICAN EXPRESS COMPANY
                            By the Compensation and
                            Benefits Committee of the
                            Board of Directors:




                            By      ---------------------------




NOTWITHSTANDING ANY CONTRARY PROVISION IN THE AMERICAN EXPRESS COMPANY 2007
INCENTIVE COMPENSATION PLAN MASTER AGREEMENT, THE COMPANY RESERVES THE RIGHT
TO CORRECT NONMATERIAL CLERICAL ERRORS IN, AND MAKE SUBSEQUENT NONMATERIAL
CLARIFICATIONS TO, ANY AWARD AGREEMENT IN THE FUTURE, WITHOUT PRIOR
NOTIFICATION TO PARTICIPANTS.

                                                                    SCHEDULE A
                                                                    Page 1 of 2

                 AXP PORTFOLIO GRANT PERFORMANCE/PAYOUT GRID
                            FOR EXECUTIVE OFFICERS
                                    GRID 1
      (subject to award agreement and discretionary downward adjustment)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
    AXP AVERAGE ANNUAL $                 AXP AVERAGE ANNUAL $ NET REVENUE              AXP AVERAGE ANNUAL RETURN
 EARNINGS PER SHARE (DILUTED)                       ($ BILLION)                                ON EQUITY
        (25% weight)                                (25% weight)                              (25% weight)
- ------------------------------------------------------------------------------------------------------------------------
<S>                <C>                <C>                  <C>                   <C>                 <C>
20__-20__ Perform.  Max. Value %(a)    20__-20__ Perform.  Max. Value %(a)        20__-20__ Perform.  Max. Value %(a)
- ------------------------------------------------------------------------------------------------------------------------
   $____ Or More         %                $__ or More             %                        __% Or More       %
- ------------------------------------------------------------------------------------------------------------------------
   $                     %                $                       %                        %                 %
- ------------------------------------------------------------------------------------------------------------------------
   $                     %                $                       %                        %                 %
- ------------------------------------------------------------------------------------------------------------------------
   $                     %                $                       %                        %                 %
- ------------------------------------------------------------------------------------------------------------------------
   $                     %                $                       %                        %                 %
- ------------------------------------------------------------------------------------------------------------------------
   Less Than $           0                Less than ___           0                        Less than __%     0
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>

- ---------------------------
    Note:  Straight-line interpolation would apply for any actual performance
           level that falls between two performance levels shown on the grid.


    (a)  "%" = percent of the executive's dollar Target Value allocated to the
          applicable performance factor.


                                                                    SCHEDULE A
                                                                    Page 2 of 2

                  AXP PORTFOLIO GRANT PERFORMANCE/PAYOUT GRID
                            FOR EXECUTIVE OFFICERS
                                    GRID 2
      (subject to award agreement and discretionary downward adjustment)


- ------------------------------------------------------------------------
                 AXP TOTAL SHAREHOLDER RETURN (TSR) %
                              VS. S&P 500
                             (25% WEIGHT)
- ------------------------------------------------------------------------
       20__-20__ Performance
(percentage points AXP is higher or
               lower)                         Max. Value % (a)
- ------------------------------------------------------------------------
           +__% Or Higher                                 %
             +__%                                         %
             +__%                                         %
             +__%                                         %
             +__%                                         %
             +__%                                         %
             +__%                                         %
             +__%                                         %
             +__%                                         %
             +__%                                         %
             +__%                                         %
             +__%                                         %
             +__%                                         %
                0%                                        %
             -__%                                         %
 Lower than -__%                                          0%
- ------------------------------------------------------------------------


- ---------------------------
Note:  Straight-line interpolation would apply for any actual performance level
       that falls between two performance levels shown on the grid.

(a) = % percent of the executive's dollar Target Value allocated to the
    applicable performance factor.

                                Page 12 of 12
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.14
<SEQUENCE>3
<FILENAME>dex1014.txt
<DESCRIPTION>FORM OF AWARD AGREEMENT FOR EXECUTIVE OFFICERS
<TEXT>
<PAGE>
                                                                EXHIBIT 10.14
                           AMERICAN EXPRESS COMPANY
                       2007 INCENTIVE COMPENSATION PLAN
                               PERFORMANCE GRANT
                   (ALSO KNOWN AS THE 20__ INCENTIVE AWARD)
                                      TO



                           -------------------------
                               Name of Employee



- -------------------------                 -----------------------------------
       Award Date                           Expiration Date of Award Period


         We are pleased to inform you that, pursuant to the Company's 2007
Incentive Compensation Plan, as amended (the "Plan"), the Compensation and
Benefits Committee (the "Committee") of the Board of Directors (the "Board")
of American Express Company (the "Company"), made an award of a performance
grant (also known as the 20__ Incentive Award) to you as hereinafter set forth
(the "Award") under the Plan as of the award date specified above (the "Award
Date"). This Award is subject to the Detrimental Conduct Provisions
established by the Committee, and as from time to time amended.

1. GENERAL. You have been granted the Award subject to the provisions of the
Plan and the terms, conditions and restrictions set forth in this agreement
(this "Agreement"). The period beginning on the first day of the fiscal year
of the Company in which the Award Date occurs and ending on the Expiration
Date specified above being the "Award Period." The Schedule A Value (as that
term is defined below in Subparagraph 3(b)), if any, will be determined as
specified in Paragraph 3.

2. REQUIREMENT OF EMPLOYMENT. Your rights to the Cash Value and the Number of
Restricted Shares or Restricted Stock Units, if any (as those terms are
defined below) under Subparagraph 4(b) hereof, shall be provisional and shall
be canceled if your continuous employment with the Company and its Affiliates
or your Related (as that term is defined in the Plan) (hereinafter
collectively referred to as "employment with the American Express companies"),
terminates for any reason on or before the payment date as set forth in
Subparagraph 4(b). Whether and as of what date your employment with the
American Express companies shall terminate if you are granted a leave of
absence or commence any other break in employment intended by the Company to
be temporary, shall be determined by the Committee.

3. DETERMINATION OF THE SCHEDULE A VALUE, CASH VALUE AND THE NUMBER OF
RESTRICTED SHARES OR RESTRICTED STOCK UNITS.

(a) Except as otherwise provided below in this Paragraph 3 and in Paragraphs 2
and 5 hereof, there shall be paid to you in accordance with Paragraph 4
hereof, the Schedule A Value as of the last day of the Award Period, if any,
as provided in Subparagraph 3(b).


                                 Page 1 of 8

(b) SCHEDULE A VALUE.

          (i) Except as otherwise provided in this Paragraph 3, the Schedule A
     Value as of the last day of the Award Period will be equal to the amount,
     if any, determined by the Committee based on the performance (i.e., 20__
     Return on Equity and 20__ Earnings Per Share) of the Company, pursuant to
     Schedule A to this Agreement. However, in no event will the Schedule A
     Value be greater than the maximum value as set forth in Schedule A to
     this Agreement.

          (ii) In the application of Schedule A to this Agreement after the
     end of the Award Period for purposes of determining the Schedule A Value
     pursuant to this Subparagraph 3(b), (A) if the 20__ Return on Equity or
     the 20__ Earnings Per Share is less than the level needed to have some
     Schedule A Value, there shall be no Schedule A Value, and (B) if the 20__
     Return on Equity and the 20__ Earnings Per Share are equal to or greater
     than those levels needed to have some Schedule A Value and less than or
     equal to the maximum specified levels and are not represented on the
     table, the Schedule A Value shall be determined by straight-line
     interpolation from the amounts specified in such table immediately less
     than and greater than the amounts actually attained.

          (iii) The Committee shall determine in its own discretion what
     portion of the Schedule A Value, if any (as adjusted in accordance with
     Subparagraph 3(c) below), shall be payable in cash (the "Cash Value"),
     and what portion shall be denominated in restricted shares or restricted
     stock units of the Company ("the RSA" or "the RSU"), in accordance with
     Paragraph 4 below. The RSA or the RSU shall have the terms substantially
     as set forth in the form of restricted stock or restricted stock unit
     award granted generally under the Plan, or its successor, except that the
     RSA or the RSU shall vest pursuant to a period determined in the
     Committee's discretion, except that such vesting period shall not be less
     than one year from date of grant, and (B) be forfeitable only if your
     employment with the American Express companies terminates by reason of
     voluntary resignation or terminates for cause (that is, violation of the
     Code of Conduct as in effect from time to time) prior to the applicable
     vesting dates. The number of restricted shares or restricted stock units
     of the Company comprising the RSA or the RSU (the "Number of Restricted
     Shares" or the "Number of Restricted Stock Units") shall be determined by
     dividing such portion of the Schedule A value so designated by the
     Committee, if any, by the closing price of the shares on the date that
     the Committee approves payout of the Awards, and shall be payable in the
     form of an RSA or an RSU in accordance with Paragraph 4 below.

          (iv) For purposes of this Award, all accounting terms are defined in
     accordance with generally accepted accounting principles as set forth in
     the Company's annual audited financial statements, except as otherwise
     provided below (which will take into account, in each case, the expenses
     and other financial effect for the applicable year(s) of performance
     grants under the Plan):

               (A) "Net Income" means, for any given year, the after-tax net
          income (or loss) of the Company or of a segment or other part of the
          Company, as the case may be, for such year as adjusted below, as
          reported by the Company. The calculation of Net Income, for any
          given year, will be adjusted to exclude:

                 o reported cumulative effect of accounting changes;
                 o reported income and losses from discontinued operations; and
                 o reported extraordinary gains and losses as determined under
                   generally accepted accounting principles.

                                 Page 2 of 8


               (B) "Average Annual Shareholders' Equity" means, for any given
          year, the sum of the total shareholders' equity of the Company or of
          a segment or other part of the Company, as the case may be, as of the
          first day of such year and as of the end of each month during such
          period (each as reported by the Company), divided by 13.

               (C) "Return on Equity" means, for any given year, the Net Income
          for such year divided by the Average Annual Shareholders' Equity for
          such year.

               (D) "Earnings Per Share" means, for any given year, the diluted
          earnings (or loss) per share of the Company for such year, as
          reported by the Company. The calculation of Earnings Per Share, for
          any given year, will be adjusted in the same fashion as Net Income for
          such year.

          (v) To the extent permissible for purposes of Section 162(m) of the
     Internal Revenue Code of 1986, as amended (the "Code"), in the event of
     any change in the corporate capitalization of the Company, such as by
     reason of any stock split, or a material corporate transaction, such as
     any merger of the Company into another corporation, any consolidation of
     the Company and one or more corporations into another corporation, any
     separation of the Company (including a spin-off or other distribution of
     stock or property by the Company), any reorganization of the Company
     (whether or not such reorganization comes within the definition of such
     term in Section 368 of the Code), or any partial or complete liquidation
     by the Company, other than a normal cash dividend, if the Committee shall
     determine that such a change equitably requires an adjustment in the
     calculation or terms of Return on Equity and/or Earnings Per Share, on
     the grounds that any such change would produce an unreasonable value,
     such equitable adjustment will be made by the Committee. Any such
     determination by the Committee to reflect such change under this
     Subparagraph 3(b)(v) shall be final, binding and conclusive.

(c) As soon as practicable after the last day of the Award Period, the
Committee may determine, in its sole discretion, that the Schedule A Value, if
any (as determined above in Subparagraph 3(b)), may be adjusted downward, but
in no event upward, by a percentage from 0-100% (that is, to a value of zero).
In no event may the Committee amend any provision hereof so as to increase or
otherwise adjust upward the Schedule A Value. In exercising its discretion to
make a downward adjustment, the Committee may take into account factors such
as the increase in shareholder value (as indicated, for example, by
shareholder return, earnings growth and return on equity), customer
satisfaction (as indicated, for example, by customer satisfaction measures,
client retention and growth in products and services), employee satisfaction
(as indicated, for example, by the employee values survey results),
implementation of AEQL initiatives (as indicated, for example, by process
changes that achieve significant results), achievement of reengineering
initiatives (as indicated, for example, by cost savings), and such other
factors deemed relevant by the Committee; provided that any such determination
by the Committee need not be made in a uniform manner and may be made
selectively among holders of awards of performance grants, whether or not such
award holders are similarly situated.

                                 Page 3 of 8


(d) The Committee's determinations as to the Schedule A Value, the Cash Value
and the Number of Restricted Shares or the Number of Restricted Stock Units
pursuant to this Agreement shall be final, binding and conclusive upon you and
all persons claiming under or through you.

4. PAYMENT OF AWARD.

(a) As soon as practicable after the last day of the Award Period, the
Committee shall determine whether the conditions of Paragraphs 2 and 3 hereof
have been met and, if so, shall ascertain the Schedule A Value (and any
negative adjustment thereto), Cash Value and the Number of Restricted Shares
or the Number of Restricted Stock Units, if any, in accordance with Paragraph
3 hereof.

(b) If the Committee determines that there is no Schedule A Value, this Award
will be canceled. If the Committee determines that there is some Schedule A
Value, however, the Cash Value as determined pursuant to Paragraph 3 hereof
shall become payable to you in cash, and the Number of Restricted Shares or
the Number of Restricted Stock Units shall be issued to you in the form of a
restricted stock or restricted stock unit award under the Plan, within fifteen
business days following the regularly scheduled payroll payment date of the
applicable pay period beginning after January 31 of the year following the
Award Period, but in no event later than 90 days after January 31 of the year
following the Award Period (or at such other time or times as the Committee
shall determine as provided in Paragraph 6 below).

5. TERMINATION OF EMPLOYMENT AFTER THE AWARD PERIOD BUT ON OR BEFORE THE
PAYMENT DATE. If, after the last day of the Award Period and on or before the
date specified above in Subparagraph 4(b), but during a period when you have
been in continuous employment with the American Express companies since the
Award Date, you terminate your employment with the American Express companies
for any reason, then you and all others claiming under or through you shall
not be entitled to receive any amounts or awards under this Award, except as
otherwise determined by the Committee in its sole discretion.

6. DEFERRAL OR ACCELERATION OF PAYMENT OF AWARD. Any payments to be made under
this Award may be deferred or accelerated in such manner as the Committee
shall determine; provided, however, that any such deferral or acceleration
must comply with the applicable requirements of Section 409A of the Code. As
to such a deferral of payment, any such payment in excess of the amount that
was originally payable to you under this Agreement will be based on a
reasonable interest rate or on one or more predetermined actual investments
(whether or not assets associated with the amount are actually invested
therein) as determined by the Committee, and as to such an acceleration of
payment to you under this Agreement, any such payment will be discounted to
reasonably reflect the time value of money as determined by the Committee.

7. CHANGE IN CONTROL.

(a) Notwithstanding anything in this Award to the contrary, if you have not
received payment under this Award as discussed in Subparagraph 4(b) above, and
within two years following a Change in Control, as that term is defined in the
Company's Senior Executive Severance Plan, you experience a termination of
employment that would otherwise entitle you to receive the payment of severance
benefits under the provisions of the severance plan that you participate in as
of the date of such termination of employment, then you shall be paid under
this Award, within five days after the date of such termination of employment,
a cash payment under this Award equal to the value of (i) (A) the average award
paid or payable to you under the 2006 and 2007

                                 Page 4 of 8

Annual Incentive Award or such other annual incentive award program of the
Company or one of its subsidiaries that you participated in at the time of
such prior payment for the two years prior to the Change in Control, or (B) if
you have not received two such awards, the most recent award paid or payable
(or guideline amount payable, if you have not previously received any such
award) to you under the applicable annual incentive award program of the
Company or one of its subsidiaries at the time of such prior payment),
multiplied by (ii) the number of full or partial months that have elapsed
during the Award Period at the time of such termination of employment divided
by 12.

(b) The Committee reserves the right to amend or delete this Paragraph 7 in
whole or in part at any time and from time to time; provided, that upon and
following the occurrence of a Change in Control, the Committee may not amend
this Paragraph 7 in a manner that is detrimental to your rights without your
express written consent. Any amendment of the definition of "Change in Control"
in the Senior Executive Severance Plan will be deemed to be an amendment
permitted under this Paragraph.

8. TAX WITHHOLDING AND FURNISHING OF INFORMATION. There shall be withheld from
any payment of cash or vesting of any restricted shares or restricted stock
units under this Award, such amount, if any, as the Company determines is
required by law, including, but not limited to, U.S. federal, state, local or
foreign income, employment or other taxes incurred by reason of making of the
Award or of such payment. It shall be a condition precedent to the obligation
of the Company to make payments under this Award that you (or those claiming
under or through you) promptly provide the Company with all forms, documents
or other information reasonably required by the Company in connection with the
Award.

9. RIGHTS NOT ASSIGNABLE. Your rights and interests under the Award and the
Plan may not be sold, assigned, transferred, or otherwise disposed of, or made
subject to any encumbrance, pledge, hypothecation or charge of any nature,
except that you may designate a beneficiary pursuant to Paragraph 10 hereof.
If you (or those claiming under or through you) attempt to violate this
Paragraph 9, such attempted violation shall be null and void and without
effect, and the Company's obligation to make any further payments to you (or
those claiming under or through you) hereunder shall terminate.

10. BENEFICIARY DESIGNATION. Subject to the provisions of the Plan, you may,
by completing a form acceptable to the Company and returning it to the
Corporate Secretary's Office, at 200 Vesey Street, New York, New York 10285,
name a beneficiary or beneficiaries to receive any payment to which you may
become entitled under this Agreement in the event of your death. You may
change your beneficiary or beneficiaries from time to time by submitting a new
form to the Corporate Secretary's Office at the same address. If you do not
designate a beneficiary, or if no designated beneficiary is living on the date
any amount or award becomes payable under this Agreement, such payment will be
made to the legal representatives of your estate, which will be deemed to be
your designated beneficiary under this Agreement.

11. ADMINISTRATION. Any action taken or decision made by the Company, the
Board or the Committee or its delegates arising out of or in connection with
the construction, administration, interpretation or effect of the Plan or this
Agreement shall lie within its sole and absolute discretion, as the case may
be, and shall be final, conclusive and binding upon you and all persons
claiming under or through you. By accepting this Award or other benefit under
the Plan, you and each person claiming under or through you shall be
conclusively deemed to have indicated acceptance and ratification of, and
consent to, any action taken or decision made under the Plan by the Company,
the Board or the Committee or its delegates.

                                 Page 5 of 8

12. CHANGE IN CONTROL PAYMENTS. This Paragraph shall apply in the event of
Change in Control (as defined in the American Express Senior Executive
Severance Plan, as amended from time to time).

                  (a) In the event that any payment or benefit received or to
be received by you hereunder in connection with a Change in Control or
termination of your employment (such payments and benefits, excluding Gross-Up
Payment (as hereinafter defined), being hereinafter referred to collectively
as the "Payments"), will be subject to the excise tax referred to in Section
4999 of the Code (the "Excise Tax"), then (i) if you are classified in Band 70
(or its equivalent) or above immediately prior to such Change in Control (a
"Tier 1 Employee"), the Company shall pay to such Tier 1 Employee, within five
days after receipt by such Tier 1 Employee of the written statement referred
to in Subparagraph (e) below, an additional amount (the "Gross-Up Payment")
such that the net amount retained by such Tier 1 Employee, after deduction of
any Excise Tax on the Payments and any federal, state and local income and
employment taxes and Excise Tax upon the Gross-Up Payment, shall be equal to
the Payments and (ii) if you are other than a Tier 1 Employee, the Payments
shall be reduced to the extent necessary so that no portion of the Payments is
subject to the Excise Tax but only if (A) the net amount of all Total Payments
(as hereinafter defined), as so reduced (and after subtracting the net amount
of federal, state and local income and employment taxes on such reduced Total
Payments), is greater than or equal to (B) the net amount of such Total
Payments without any such reduction (but after subtracting the net amount of
federal, state and local income and employment taxes on such Total Payments
and the amount of Excise Tax to which you would be subject in respect of such
unreduced Total Payments); provided, however, that you may elect in writing to
have other components of your Total Payments reduced prior to any reduction in
the Payments hereunder.

                  (b) For purposes of determining whether the Payments will be
subject to the Excise Tax, the amount of such Excise Tax and whether any
Payments are to be reduced hereunder: (i) all payments and benefits received
or to be received by you in connection with such Change in Control or the
termination of your employment, whether pursuant to the terms of this
Agreement or any other plan, arrangement or agreement with the Company, any
Person (as such term is defined in the Company's Senior Executive Severance
Plan) whose actions result in such Change in Control or any Person affiliated
with the Company or such Person (all such payments and benefits, excluding the
Gross-Up Payment and any similar gross-up payment to which a Tier 1 Employee
may be entitled under any such other plan, arrangement or agreement, being
hereinafter referred to as the "Total Payments"), shall be treated as
"parachute payments" (within the meaning of Section 280G(b)(2) of the Code)
unless, in the opinion of the firm serving, immediately prior to the Change in
Control, as the Company's independent auditors, or if that firm refuses to
serve, by another qualified firm, whether or not serving as independent
auditors, designated by the Administration Committee under the American
Express Senior Executive Severance Plan (the "Firm"), such payments or
benefits (in whole or in part) do not constitute parachute payments, including
by reason of Section 280G(b)(2)(A) or Section 280G(b)(4)(A) of the Code; (ii)
no portion of the Total Payments the receipt or enjoyment of which you shall
have waived at such time and in such manner as not to constitute a "payment"
within the meaning of Section 280G(b) of the Code shall be taken into account;
(iii) all "excess parachute payments" within the meaning of Section 280G(b)(l)
of the Code shall be treated as subject to the Excise Tax unless, in the
opinion of the Firm, such excess parachute payments (in whole or in part)
represent reasonable compensation for services actually rendered (within the
meaning of Section 280G(b)(4)(B) of the Code) in excess of the Base Amount
(within the meaning of Section 280G(b)(3) of the Code) allocable to such
reasonable compensation, or are otherwise not subject to the Excise Tax; and


                                 Page 6 of 8

(iv) the value of any noncash benefits or any deferred payment or benefit
shall be determined by the Firm, in accordance with the principles of Sections
280G(d)(3) and (4) of the Code and regulations or other guidance thereunder.
For purposes of determining the amount of the Gross-Up Payment in respect of a
Tier 1 Employee and whether any Payments in respect of a Participant (other
than a Tier 1 Employee) shall be reduced, shall be deemed to pay federal
income tax at the highest marginal rate of federal income taxation (and state
and local income taxes at the highest marginal rate of taxation in the state
and locality of your residence, net of the maximum reduction in federal income
taxes which could be obtained from deduction of such state and local taxes) in
the calendar year in which the Gross-Up Payment is to be made (in the case of
a Tier 1 Employee) or in which the Payments are made (if you are other than a
Tier 1 Employee). The Firm will be paid reasonable compensation by the Company
for its services.

                  (c) In the event that the Excise Tax is finally determined
to be less than the amount taken into account hereunder in calculating the
Gross-Up Payment, then the Tier 1 Employee will be required to repay to the
Company on the fifth business day after demand an amount equal to the excess
of the earlier payment over the redetermined amount (the "Excess Amount"),
together with interest on such amount at the lowest applicable federal rate
(as defined in Section 1274(d) of the Code or any successor provision
thereto), compounded semi-annually (the "Section 1274 Rate"), from the date of
the Tier 1 Employee's receipt of such Excess Amount until the date of such
repayment (or such lesser rate (including zero) as may be designated by the
Firm such that the Excess Amount and such interest will not be treated as a
parachute payment as previously defined). In the event that the Excise Tax is
finally determined to exceed the amount taken into account hereunder in
calculating the Gross-Up Payment (including by reason of any payment the
existence or amount of which cannot be determined at the time of the Gross-Up
Payment), within five business days of such determination, the Company will
pay to the Tier 1 Employee an additional amount, together with interest
thereon from the date such additional amount should have been paid to the date
of such payment, at the Section 1274 Rate (or such lesser rate (including
zero) as may be designated by the Firm such that the amount of such deficiency
and such interest will not be treated as a parachute payment as previously
defined). The Tier 1 Employee and the Company shall each reasonably cooperate
with the other in connection with any administrative or judicial proceedings
concerning the amount of any Gross-Up Payment.

                  (d) As soon as practicable following a Change in Control,
the Company shall provide to each Tier 1 Employee and to each other
Participant with respect to whom it is proposed that Payments be reduced, a
written statement setting forth the manner in which the Total Payments in
respect of such Tier 1 Employee or other Participant were calculated and the
basis for such calculations, including, without limitation, any opinions or
other advice the Company has received from the Firm or other advisors or
consultants (and any such opinions or advice which are in writing shall be
attached to the statement).

13. MISCELLANEOUS. Neither you nor any person claiming under or through you
shall have any right or interest, whether vested or otherwise, in the Plan or

                                 Page 7 of 8

the Award, unless and until all of the terms, conditions and provisions of the
Plan and this Agreement shall have been complied with. In addition, neither
the adoption of the Plan nor the execution of this Agreement shall in any way
affect the rights and powers of any person to dismiss or discharge you at any
time from employment with the American Express companies. Notwithstanding
anything herein to the contrary, neither the Company nor any of its Affiliates
(as that term is defined in the Plan) nor their respective officers,
directors, employees or agents shall have any liability to you (or those
claiming under or through you) under the Plan, this Agreement or otherwise on
account of any action taken, or decision not to take any action made, by any
of the foregoing persons with respect to the business or operations of the
Company or any of its Affiliates (as that term is defined in the Plan),
despite the fact that any such action or decision may adversely affect in any
way whatsoever Average Annual Shareholders' Equity, Earnings Per Share, Net
Income or other financial measures or amounts which are accrued or payable or
any of your other rights or interests under this Agreement.

14. GOVERNING LAW. The validity, construction, interpretation, administration
and effect of this Agreement shall be governed by the substantive laws, but
not the choice of law rules, of the State of New York.


                                    AMERICAN EXPRESS COMPANY
                                    By the Compensation and
                                    Benefits Committee of the
                                    Board of Directors:



                                    By
                                        -----------------------------









NOTWITHSTANDING ANY CONTRARY PROVISION IN THE AMERICAN EXPRESS COMPANY 2007
INCENTIVE COMPENSATION PLAN MASTER AGREEMENT, THE COMPANY RESERVES THE RIGHT
TO CORRECT NONMATERIAL CLERICAL ERRORS IN, AND MAKE SUBSEQUENT NONMATERIAL
CLARIFICATIONS TO, ANY AWARD AGREEMENT IN THE FUTURE, WITHOUT PRIOR
NOTIFICATION TO PARTICIPANTS.

                                 Page 8 of 8
                                                                      SCHEDULE A

  20__ Incentive Awards: Proposed AXP Earnings Per Share/Return on Equity Grid
                       for Determining Maximum Award Value

       (subject to award agreement and discretionary downward adjustment)

<Table>
<Caption>
                                              20__ AXP EARNINGS PER SHARE (DILUTED)
   20__ AXP         LESS THAN $____      $____         $____         $____         $____       $____ OR MORE
RETURN ON EQUITY        Value          Max. Value    Max. Value    Max. Value    Max. Value      Max. Value
<S>                 <C>                <C>           <C>           <C>           <C>           <C>
  __% OR MORE             $0                $            $             $             $               $
        %                  0                $            $             $             $               $
        %                  0                $            $             $             $               $
        %                  0                $            $             $             $               $
        %                  0                $            $             $             $               $
  LESS THAN __%            0                0            0             0             0               0
</Table>

Note: Straight-line interpolation would apply for any actual performance level
that falls between two performance levels shown on the grid.
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-12
<SEQUENCE>4
<FILENAME>dex12.htm
<DESCRIPTION>COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES
<TEXT>
<HTML><HEAD>
<TITLE>Computation in Support of Ratio of Earnings to Fixed Charges</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>EXHIBIT 12 </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>AMERICAN EXPRESS COMPANY </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES
</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>(Dollars in millions) </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="64%"></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="14" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>Years Ended December&nbsp;31,</B></FONT></TD></TR>
<TR>
<TD VALIGN="bottom">&nbsp;<FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>2007</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>2006</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>2005</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>2004</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>2003</B></FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Earnings:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Pretax income from continuing operations</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5,566</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5,139</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,053</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,745</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,315</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Interest expense</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,327</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,132</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,324</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,830</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,728</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Other adjustments</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">143</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">139</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">150</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">151</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">154</FONT></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Total earnings (a)</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">10,036</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">8,410</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">6,527</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5,726</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5,197</FONT></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="3"></TD>
<TD HEIGHT="8" COLSPAN="3"></TD>
<TD HEIGHT="8" COLSPAN="3"></TD>
<TD HEIGHT="8" COLSPAN="3"></TD>
<TD HEIGHT="8" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Fixed charges:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Interest expense</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,327</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,132</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,324</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,830</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,728</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Other adjustments</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">106</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">106</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">151</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">145</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">139</FONT></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Total fixed charges (b)</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,433</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,238</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,475</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,975</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">$</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,867</FONT></TD></TR>
<TR STYLE="font-size:1px">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="border-top:1px solid #000000">&nbsp;</TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="3"></TD>
<TD HEIGHT="8" COLSPAN="3"></TD>
<TD HEIGHT="8" COLSPAN="3"></TD>
<TD HEIGHT="8" COLSPAN="3"></TD>
<TD HEIGHT="8" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Ratio of earnings to fixed charges (a/b)</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2.26</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2.60</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2.64</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2.90</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2.78</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Included in interest expense in the above computation is interest expense related to the
cardmember lending activities, international banking operations, and charge card and other activities in the Consolidated Statements of Income. Interest expense does not include interest on liabilities recorded under Financial Accounting Standards
Board (FASB) Financial Interpretation No.&nbsp;48, &#147;Accounting for Uncertainty in Income Taxes &#150; an interpretation of FASB Statement No.&nbsp;109.&#148; The Company&#146;s policy is to classify such interest in income tax provision in the
Consolidated Statements of Income. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">For purposes of the &#147;earnings&#148; computation, &#147;other adjustments&#148; include adding the
amortization of capitalized interest, the net loss of affiliates accounted for under the equity method whose debt is not guaranteed by the Company, the minority interest in the earnings of majority-owned subsidiaries with fixed charges, and the
interest component of rental expense and subtracting undistributed net income of affiliates accounted for under the equity method. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">For
purposes of the &#147;fixed charges&#148; computation, &#147;other adjustments&#148; include capitalized interest costs and the interest component of rental expense. </FONT></P>
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<TYPE>EX-13
<SEQUENCE>5
<FILENAME>dex13.htm
<DESCRIPTION>PORTIONS OF THE COMPANY'S 2007 ANNUAL REPORT TO SHAREHOLDERS
<TEXT>
<HTML><HEAD>
<TITLE>Portions of the Company's 2007 Annual Report to Shareholders</TITLE>
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<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <P align=right><FONT size=2>
<A NAME="toc"></A>EXHIBIT 13</FONT></P> <P align=center><B><FONT size=3>PORTIONS OF 2007 ANNUAL REPORT TO SHAREHOLDERS</FONT></B></P> <P>&nbsp;</P> <P>&nbsp;</P> <P>&nbsp;</P> <P>&nbsp;</P> <P>&nbsp;</P> <P>&nbsp;</P> <P>&nbsp;</P> <P>&nbsp;</P>
<P>&nbsp;</P> <P>&nbsp;</P> <P>&nbsp;</P> <P>&nbsp;</P>
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<A HREF="#a">26</A></FONT>&nbsp; </TD>
<TD noWrap align=left width="96%" bgColor=#c0c0c0><FONT face=serif size=2>FINANCIAL REVIEW</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="3%"><FONT face=serif size=2>
<A HREF="#b">65</A></FONT>&nbsp; </TD>
<TD noWrap align=left width="96%"><FONT face=serif size=2>MANAGEMENT&#146;S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING</FONT>&nbsp; </TD></TR>
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<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>
<A HREF="#c">66</A></FONT>&nbsp; </TD>
<TD noWrap align=left width="96%" bgColor=#c0c0c0><FONT face=serif size=2>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</FONT>&nbsp; </TD></TR>
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<TD noWrap align=left width="3%"><FONT face=serif size=2>
<A HREF="#d">67</A></FONT>&nbsp; </TD>
<TD noWrap align=left width="96%"><FONT face=serif size=2>INDEX TO CONSOLIDATED FINANCIAL STATEMENTS</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>
<A HREF="#e">68</A></FONT>&nbsp; </TD>
<TD noWrap align=left width="96%" bgColor=#c0c0c0><FONT face=serif size=2>CONSOLIDATED FINANCIAL STATEMENTS</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="3%"><FONT face=serif size=2>
<A HREF="#f">72</A></FONT>&nbsp; </TD>
<TD noWrap align=left width="96%"><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</FONT>&nbsp; </TD></TR>
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<A HREF="#g">113</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> </TD>
<TD noWrap align=left width="96%" bgColor=#c0c0c0><FONT face=serif size=2>CONSOLIDATED FIVE-YEAR SUMMARY OF SELECTED FINANCIAL DATA</FONT>&nbsp; </TD></TR></TABLE><BR> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT
face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p>
<A NAME="a"></A><P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW <BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY </FONT></P> <P align=justify><FONT face=serif>FINANCIAL REVIEW </FONT></P> <P align=justify><FONT face=serif
size=2>The financial section of American Express Company&#146;s (the Company) Annual Report consists of this Financial Review, the Consolidated Financial Statements and the related notes that follow. The following discussion is designed to provide
perspective and understanding to the Company&#146;s consolidated financial condition and results of operations. Certain key terms are defined in the Glossary of Selected Terminology, which begins on page 62.</FONT></P> <P align=justify><B><FONT
face=serif size=1>EXECUTIVE OVERVIEW<BR></FONT></B><FONT face=serif size=2>American Express Company is a leading global payments</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>and travel company. The Company&#146;s principal
products and services are charge and credit payment card products and travel-related services offered to consumers and businesses around the world. The Company&#146;s businesses are organized into two customer-focused groups, the Global Consumer
Group and the Global Business-to-Business Group. The Global Consumer Group offers a range of products and services including charge and lending (i.e., credit) card products; consumer travel services; and stored value products such as Travelers
Cheques and prepaid products. The Business-to-Business Group offers business travel, corporate cards and other expense management products and services; network</FONT><FONT face=serif size=1> </FONT><FONT face=serif size=2>services and merchant
acquisition and merchant processing for the Company&#146;s network partners and proprietary payments businesses; and point-of-sale, back-office, and marketing products and services for merchants. The Company&#146;s various products and services are
sold globally to diverse customer groups, including consumers, small businesses, middle-market companies, and large corporations. These products and services are sold through various channels including direct mail, on-line applications, targeted
sales forces, and direct response advertising.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company&#146;s products and services generate the following types of revenue for the Company: </FONT></P> <UL
style="TEXT-ALIGN: justify"> <LI><FONT face=serif size=2>Discount revenue, which is the Company&#146;s largest revenue source, represents fees charged to merchants when cardmembers use their cards to purchase goods and services on the Company&#146;s
network;<BR>&nbsp;</FONT> <LI><FONT face=serif size=2>Cardmember lending finance revenue, which represents interest income earned on outstanding balances related to the cardmember lending portfolio;<BR>&nbsp;</FONT> <LI><FONT face=serif size=2>Net
card fees, which represent revenue earned for annual memberships;<BR>&nbsp;</FONT> <LI><FONT face=serif size=2>Travel commissions and fees, which are earned by charging a transaction or management fee for airline or other travel-related
transactions;<BR>&nbsp;</FONT> <LI><FONT face=serif size=2>Other commissions and fees, which are earned on foreign exchange conversion fees and card-related fees and assessments;<BR>&nbsp;</FONT> <LI><FONT face=serif size=2>Securitization income,
net, which is the net earnings related to cardmember loans financed through securitization activities; and<BR>&nbsp;</FONT> <LI><FONT face=serif size=2>Other revenue, which represents insurance premiums earned from cardmember travel and other
insurance programs, revenues arising from contracts with Global Network Services&#146; (GNS) partners including royalties and signing fees, publishing revenues, and other miscellaneous revenue and fees.</FONT></LI></UL> <P align=justify><FONT
face=serif size=2>In addition to funding and operating costs associated with these types of revenue, other major expense categories are related to marketing and reward programs that add new cardmembers and promote cardmember loyalty and spending,
and provisions for anticipated cardmember credit and fraud losses.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company believes that its &#147;spend-centric&#148; business model (which focuses on generating revenues
primarily by driving spending on its cards and secondarily by generating finance charges and fees) has significant competitive advantages.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>Average spending per cardmember, which is
substantially higher for the Company versus its competitors, represents greater value to merchants in the form of loyal customers and higher sales.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>This enables the Company to earn
a premium discount rate and thereby invest in greater value-added services for merchants and cardmembers. As a result of the higher revenues generated from higher spending, the Company has the flexibility to offer more attractive rewards, other
incentives to cardmembers, and targeted marketing programs to merchants, which in turn create an incentive to spend more on their cards.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company creates shareholder value by
focusing on the following elements: </FONT></P> <UL style="TEXT-ALIGN: justify"> <LI><FONT face=serif size=2>Driving growth principally through organic opportunities and related business strategies, as well as joint ventures and selected
acquisitions;<BR>&nbsp;</FONT> <LI><FONT face=serif size=2>Delivering returns well in excess of the Company&#146;s cost of capital; and<BR>&nbsp;</FONT> <LI><FONT face=serif size=2>Distributing excess capital to shareholders through dividends and
stock repurchases.</FONT> </LI></UL> <P align=justify><FONT face=serif size=2>Overall, it is management&#146;s priority to increase shareholder value over the moderate to long term by achieving the following long-term financial targets, on average
and over time: </FONT></P> <UL style="TEXT-ALIGN: justify"> <LI><FONT face=serif size=2>Earnings per share growth of 12 to 15 percent;<BR>&nbsp;</FONT> <LI><FONT face=serif size=2>Revenues net of interest expense growth of at least 8 percent;
and<BR>&nbsp;</FONT> <LI><FONT face=serif size=2>Return on average equity (ROE) of 33 to 36 percent.</FONT> </LI></UL> <P align=justify><FONT face=serif size=2>The ROE target reflects the success of the Company&#146;s spend-centric business model
and its effectiveness in capturing high spending consumer, small business, and corporate cardmembers.</FONT></P> <P align=justify><FONT face=serif size=1>26</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT
face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif
size=2>For 2007, 2006, and 2005, the Company met or exceeded management&#146;s targets for revenues net of interest, earnings per share, and ROE, illustrating the success of investments made over the past few years. Reported ROE was 37 percent, 35
percent and 25 percent (prior to the completion of the Ameriprise spin-off discussed below, the Company&#146;s ROE target was 18-20 percent) for 2007, 2006, and 2005, respectively. Refer to page 41 for discussion of the Company&#146;s outlook for
2008. </FONT></P> <P align=justify><B><FONT face=serif size=1>REPORTABLE OPERATING SEGMENTS<BR></FONT></B><FONT face=serif size=2>During 2007, the Company&#146;s segments were realigned within the two major customer groups. Accordingly, U.S. Card
Services (USCS) and International Card Services (ICS) are aligned within the Global Consumer Group and Global Commercial Services (GCS) and Global Network &amp; Merchant Services (GNMS) are aligned within the Global Business-to-Business Group. The
Company has reclassified the prior period amounts to be consistent with the new reportable operating segments.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>U.S. Card Services issues a wide range of card products and services to
consumers and small businesses in the United States, and provides consumer travel services to cardmembers and other consumers.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>International Card Services issues proprietary consumer
and small business cards outside the United States.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Global Commercial Services offers global corporate payment and travel-related products and services to large and mid-sized
companies.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Global Network &amp; Merchant Services segment operates a global general-purpose charge and credit card network, which includes both proprietary cards and cards issued under
network partnership agreements. It also manages merchant services globally, which includes signing merchants to accept cards as well as processing and settling card transactions for those merchants. This segment also offers merchants point-of-sale
and back-office products, services and marketing programs.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Corporate &amp; Other consists of corporate functions and auxiliary businesses, including the Company&#146;s publishing
businesses, Travelers Cheques and other prepaid products, American Express International Deposit Company, and the continuing portions of American Express Bank Ltd. not being sold to Standard Chartered PLC as discussed below.</FONT></P> <P
align=justify><B><FONT face=serif size=1>VISA SETTLEMENT<BR></FONT></B><FONT face=serif size=2>On November 7, 2007, the Company announced that it entered into an agreement with Visa, Inc., Visa USA, and Visa International (collectively Visa) to
remove Visa and certain of its member banks as defendants in the Company&#146;s lawsuit against MasterCard International, Inc. (MasterCard), Visa and their member banks. The lawsuit alleges MasterCard, Visa and their member banks illegally blocked
the Company from the </FONT><FONT face=serif size=2>bank-issued card business in the United States. The settlement agreement with Visa has been approved by Visa USA&#146;s member banks.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif
size=2>Under terms of the settlement agreement reached with Visa, the Company will receive an aggregate maximum payment of $2.25 billion. The initial amount due March 31, 2008, of $1.13 billion ($700 million after-tax) was recorded as a gain in the
fourth quarter of 2007. The remaining payments, payable in installments of up to $70 million ($43 million after-tax) per quarter over the next four years, are subject to achieving certain quarterly performance criteria within the U.S. Global Network
Services business the Company is optimistic it will achieve.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>Given the performance criteria associated with the installment payments, the Company will recognize these payments in
income when the performance criteria is achieved. Related to the settlement, the Company recognized litigation expense of $74 million ($46 million after-tax) related to the settlement.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif
size=2>Both the Visa settlement gain and the related litigation expense are included in other, net expenses within continuing operations in the Consolidated Statements of Income and within the Corporate &amp; Other segment.</FONT></P> <P
align=justify><B><FONT face=serif size=1>DIVESTITURES AND ACQUISITIONS <BR></FONT></B><FONT face=serif size=2>The Company announced or completed the following divestitures during 2007, 2006, and 2005.</FONT></P> <P align=justify><FONT face=serif
size=1><STRONG>AEB and AEIDC</STRONG><BR></FONT><FONT face=serif size=2>On September 18, 2007, the Company entered into an agreement to sell its international banking subsidiary, American Express Bank Ltd. (AEB) and American Express International
Deposit Company (AEIDC), a subsidiary that issues investment certificates to AEB&#146;s customers, to Standard Chartered PLC (Standard Chartered) for the approximate value of $1.1 billion, subject to certain regulatory approvals. Standard Chartered
will pay the Company an amount equal to the net asset value of the AEB businesses that are being sold at the closing date plus $300 million. At December 31, 2007, this would have amounted to approximately $819 million. The Company also expects to
realize an additional amount representing the net asset value of AEIDC, which was also contracted to be sold to Standard Chartered 18 months after the close of the AEB sale, through a put/call agreement. As of December 31, 2007, the net asset value
of that business was $232 million. This value is expected to be realized through (1) dividends from the subsidiary to the Company and (2) a subsequent payment from Standard Chartered based on the net asset value of AEIDC on the date the business is
transferred to them.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>For 2007 and all prior periods presented, the operating results, assets and liabilities, and cash flows of AEB (except for certain components of AEB that are not
being sold) have been removed from the Corporate &amp; Other segment and reported </FONT></P> <P align=right><FONT face=serif size=1>27</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY </FONT></P> <P align=justify><FONT face=serif size=2>within the discontinued
operations captions in the Company&#146;s Consolidated Financial Statements. AEIDC will continue to be included in continuing operations within the Corporate &amp; Other segment until such time as AEIDC qualifies for classification as a discontinued
operation, which will occur approximately one year prior to its transfer to Standard Chartered. Beginning with the third quarter of 2007, AEIDC&#146;s investment portfolio was reclassified to Trading from Available-for-Sale due to the impact on the
holding period of AEIDC&#146;s investments as a result of the related AEB sale agreement.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>This Financial Review and the Notes to the Consolidated Financial Statements have been adjusted
to exclude discontinued operations unless otherwise noted. Refer to Note 2 for further discussion of AEB as a discontinued operation.</FONT></P> <P align=justify><STRONG><FONT face=serif size=2>Divestitures with GNS Network</FONT><FONT face=serif
size=2> </FONT></STRONG><FONT face=serif size=2><STRONG>Arrangements</STRONG><BR></FONT><FONT face=serif size=2>On May 31, 2007, the Company completed the sale of its merchant-related activities in Russia to Russian Standard Bank (RSB), for
approximately $27 million ($18 million after-tax) net gain in the Global Network &amp; Merchant Services segment.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>$23 million ($15 million after-tax) of the gain relates to the
merchant-related activities sold and is reported as a reduction to other, net expenses in the Company&#146;s continuing operations.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>$4 million ($3 million after-tax) of the gain
relates to the </FONT><FONT face=serif size=2>issuance of the</FONT><FONT face=serif size=1> </FONT><FONT face=serif size=2>GNS</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>license and is reported as other revenue in the
Company&#146;s continuing operations.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>During the third quarter of 2006, the Company completed the sale of its card and merchant-related activities in Malaysia to Maybank, and its
card and merchant-related activities in Indonesia to Bank Danamon for combined proceeds of $94 million. The transactions generated a gain of $33 million ($24 million after-tax), and are reported as a reduction to other, net expenses in the
Company&#146;s continuing operations ($23 million in the International Card Services segment and $10 million in the Global Commercial Services segment).<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>On June 30, 2006, the Company
completed the sale of its card and merchant-related activities and international banking activities in Brazil to Banco Bradesco S.A. (Bradesco), for approximately $470 million. The transaction generated a net after-tax gain of $109 million. $144
million ($131 million after-tax) of the gain relates to the card and merchant-related activities sold and is reported as a reduction to other, net expenses in the Company&#146;s continuing operations ($91 million in the International Card Services
segment, $28 million in the Global Commercial Services segment, and $25 million </FONT><FONT face=serif size=2>in the Global Network &amp; Merchant Services segment). A $48 million ($22 million after-tax) loss related to the sale of the
Company&#146;s international banking activities to Bradesco is reported in discontinued operations for banking activities the Company exited in Brazil.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company will continue
to maintain its presence in the merchant-related businesses within Russia and in the card and merchant-related businesses within Malaysia, Indonesia, and Brazil through its Global Network Services arrangements with the acquirers and its retention of
agreements with multinational merchants. </FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Ameriprise, TBS and Other Divestitures</STRONG><BR></FONT><FONT face=serif size=2>On September 30, 2005, the Company completed the spin-off of
Ameriprise Financial, Inc. (Ameriprise), previously known as American Express Financial Corporation, the Company&#146;s former financial planning and financial services business.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif
size=2>In addition, the Company completed certain dispositions including the sale of its tax, accounting, and consulting business, American Express Tax and Business Services, Inc. (TBS). The operating results, assets and liabilities, and cash flows
related to Ameriprise and certain dispositions (including TBS) have been reflected as discontinued operations in the Consolidated Financial Statements.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Acquisitions and Other
Transactions</STRONG><BR></FONT><FONT face=serif size=2>On September 30, 2007, the Company purchased all the outstanding common shares of AMEX Assurance Company (AAC), a subsidiary of Ameriprise, for $115 million. During the third quarter of 2005,
the Company recorded a $115 million liability related to the share purchase agreement with Ameriprise to purchase all of the shares of AAC, within a period not to exceed two years from the spin-off date of September 30, 2005. The Company had
previously consolidated AAC as a variable interest entity within the U.S. Card Services segment since the spin-off of Ameriprise and therefore there is no impact on the Company&#146;s Consolidated Financial Statements from this 2007 acquisition.<BR>
</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>On December 31, 2006, the Company acquired Harbor Payments, Inc. (Harbor Payments) for approximately $150 million, which was paid primarily in the Company&#146;s common stock. Harbor
Payments is a technology provider that specializes in electronic invoice and payment capabilities. The acquisition is reflected in the Global Commercial Services segment.</FONT></P> <P align=justify><FONT face=serif size=1>28</FONT></P> <HR
align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><B><FONT face=serif size=1>FINANCIAL SUMMARY<BR>
</FONT></B><FONT face=serif size=2>A summary of the Company&#146;s recent financial performance follows: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="82%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face=serif size=1>Percent</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="82%"><FONT size=1>Years Ended December 31,</FONT>&nbsp;&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="3%" colSpan=2><FONT face=serif size=1>Increase</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="82%"><I><FONT face=serif size=1>(Millions, except per share amounts and ratio data)</FONT></I> </TD>
<TD noWrap align=left width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face=serif size=2>2006</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face=serif size=1>(Decrease)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Revenues net of interest expense</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>27,731</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>25,154</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>10</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="82%"><FONT face=serif size=2>Expenses</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>17,824</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>16,989</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>5</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Provisions for losses and benefits</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>4,341</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>3,026</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>43</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="82%"><FONT face=serif size=2>Income from continuing operations</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>4,048</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>3,611</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>12</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Net income</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>4,012</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>3,707</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>8</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="82%"><FONT face=serif size=2>Earnings per common share from<FONT size=3> </FONT>continuing operations &#151; diluted</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>3.39</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>2.92</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>16</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Earnings per common share &#151;<FONT style="BACKGROUND-COLOR: #c0c0c0" size=3> </FONT>diluted</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>3.36</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>2.99</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>12</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="82%"><FONT face=serif size=2>Return on average equity</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>37.3</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><STRONG><FONT size=2>%</FONT></STRONG> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>34.7</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2>%</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)</FONT></TD>
<TD vAlign=top noWrap><FONT size=1>&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD width="100%"><FONT face=serif size=1>Calculated based on $4.0 billion and $3.7 billion of net income for 2007 and 2006, respectively, and $10.8 billion and $10.7 billion of average shareholders&#146; equity for the trailing 12 months ending
December 31, 2007 and 2006, respectively.</FONT></TD></TR></TABLE> <P align=justify><FONT face=serif size=2>See Consolidated Results of Operations, beginning on page 34, for discussion of the Company&#146;s
results.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company follows U.S. generally accepted accounting principles (GAAP). In addition to information provided on a GAAP basis, the Company discloses certain data on a
&#147;managed basis.&#148; This information, which should be read only as a supplement to GAAP information, assumes, in the Consolidated Selected Statistical Information and U.S. Card Services segment, there have been no cardmember lending
securitization transactions. These managed basis adjustments, and management&#146;s rationale for such presentation, are discussed further in the U.S. Card Services section below under &#147;Differences between GAAP and Managed Basis
Presentation.&#148;&nbsp;<BR><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Certain reclassifications of prior period amounts have been made to conform to the current presentation throughout this Annual
Report.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Certain of the statements in this Annual Report are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. See Forward-Looking
Statements at the end of this discussion.</FONT></P> <P align=right><FONT face=serif size=1>29</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW <BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY </FONT></P> <P align=justify><B><FONT face=serif size=1>CRITICAL ACCOUNTING
POLICIES </FONT></B></P> <P align=justify><FONT face=serif size=2>The Company&#146;s significant accounting policies are described in Note 1 to the Consolidated Financial Statements. The following chart provides information about four critical
accounting policies that are important to the Consolidated Financial Statements and that require significant management assumptions and judgments. </FONT></P> <P align=justify><B><FONT face=serif size=1>RESERVES FOR CARDMEMBER LOSSES</FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="31%">&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="32%">&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="32%"><FONT face=serif size=1>Effect if Actual Results Differ</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="31%"><FONT face=serif size=1>Description</FONT>&nbsp; </TD>
<TD noWrap align=left width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="32%"><FONT face=serif size=1>Assumptions/Approach Used</FONT>&nbsp; </TD>
<TD noWrap align=left width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="32%"><FONT face=serif size=1>from Assumptions</FONT>&nbsp; </TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="31%"> <P align=left><FONT face=serif size=2>Reserves for losses relating to cardmember loans and receivables represent management&#146;s best estimate of the losses inherent
in the Company&#146;s outstanding portfolio of loans and receivables.</FONT></P></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="32%"> <P align=left><FONT face=serif size=2>Reserves for these losses are primarily based upon models that analyze specific portfolio statistics, including average write-off
rates for various stages of receivable aging (i.e., current, 30 days, 60 days, 90 days) over a 24-month period and average bankruptcy and recovery rates. Cardmember loans and receivables are generally written off when they are past due 180 and 360
days, respectively. Also, these reserves reflect management&#146;s judgment regarding overall adequacy. Management considers whether to adjust reserves that are calculated by the analytic models based on other factors, such as the level of coverage
of past-due accounts, as well as leading economic and market indicators, such as the unemployment rate, the consumer confidence index, the purchasing manager&#146;s index, bankruptcy filings, concentration of credit risk based on tenure, industry or
geographic regions, and the legal and regulatory environment.<BR>&nbsp;</FONT></P></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="32%"> <P align=left><FONT face=serif size=2>To the extent historical credit experience updated for emerging market trends in credit are not indicative of future performance,
actual losses could differ significantly from management&#146;s judgments and expectations, resulting in either higher or lower future provisions for losses, as applicable.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>As of
December 31, 2007, an increase in write-offs equivalent to 20 basis points of cardmember loan and receivable balances at such date would increase the provision for cardmember losses by approximately $189 million. This sensitivity analysis does not
represent management&#146;s expectations of the deterioration in write-offs but is provided as a hypothetical scenario to assess the sensitivity of the provision for cardmember losses to changes in key
inputs.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The process of determining the reserve for cardmember losses requires a high degree of judgment. It is possible that others, given the same information, may at any point in time
reach different reasonable conclusions.<BR>&nbsp;</FONT></P></TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=1>30</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><B><FONT face=serif size=1>RESERVES FOR MEMBERSHIP
REWARDS COSTS</FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="31%">&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="32%">&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="32%"><FONT face=serif size=1>Effect if Actual Results Differ</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="31%"><FONT face=serif size=1>Description</FONT>&nbsp; </TD>
<TD noWrap align=left width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="32%"><FONT face=serif size=1>Assumptions/Approach Used</FONT>&nbsp; </TD>
<TD noWrap align=left width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="32%"><FONT face=serif size=1>from Assumptions</FONT>&nbsp; </TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="31%"> <P align=left><FONT face=serif size=2>The Membership Rewards program is the largest card-based rewards program in the industry. Eligible cardmembers can earn points for
purchases charged and many of the Company&#146;s card products offer the ability to earn bonus points for certain types of purchases. Membership Rewards points are redeemable for a broad variety of rewards, including travel, entertainment, retail
certificates and merchandise. Points generally do not expire and there is no limit on the number of points a cardmember may earn. A large majority of spending by eligible cardmembers earns points under the program. While cardmember spend, redemption
rates, and the related expense have been increasing, the Company benefits through higher revenues, lower cardmember attrition and credit losses and more timely payments.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
establishes balance sheet reserves that represent the estimated cost of points earned to date that are ultimately expected to be redeemed. Also, these reserves reflect management&#146;s judgment regarding overall adequacy. The provision for the cost
of Membership Rewards is included in marketing, promotion, rewards and cardmember services expenses.<BR>&nbsp;</FONT></P></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="32%"> <P align=left><FONT face=serif size=2>A weighted average cost per point redeemed during the previous 12 months is used to approximate future redemption costs and is
affected by the mix of rewards redeemed. Management uses models to estimate ultimate redemption rates based on historical redemption statistics, card product type, year of program enrollment, enrollment tenure and card spend levels. During 2007,
management enhanced the ultimate redemption rate models by incorporating more sophisticated statistical and actuarial techniques to better estimate ultimate redemption rates of points earned to date by current cardmembers given redemption trends and
projected future redemption behavior. The global ultimate redemption rate for current participants increased to approximately 90 percent.<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company continually evaluates its reserve methodology and assumptions
based on developments in redemption patterns, cost per point redeemed, and other factors.</FONT></P></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="32%"> <P align=left><FONT face=serif size=2>The balance sheet reserve for the estimated cost of points expected to be redeemed is impacted over time by enrollment levels, the
number of points earned and redeemed, and the weighted-average cost per point, which is influenced by redemption choices made by cardmembers, reward offerings by partners and other Membership Rewards program changes. The reserve is most sensitive to
changes in the estimated ultimate redemption rate. This rate is based on the expectation that a large majority of all points earned will eventually be redeemed.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>As of December 31, 2007,
if the ultimate redemption rate of current enrollees changed by 100 basis points, the balance sheet reserve would change by approximately $200 million.</FONT></P></TD></TR></TABLE> <P align=right><FONT face=serif size=1>31</FONT></P> <HR
align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW <BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY </FONT></P> <P align=justify><B><FONT face=serif size=1>ASSET SECURITIZATIONS
</FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="31%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="32%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="32%" colSpan=13><FONT size=1>Effect if Actual Results Differ</FONT> </TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="31%"><FONT size=1>Description</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="32%"><FONT size=1>Assumptions/Approach Used</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="32%" colSpan=13><FONT size=1>from Assumptions</FONT> </TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="31%" rowSpan=14> <P align=left><FONT face=serif size=2>When the Company securitizes cardmember loans, it retains certain subordinated interests in securitized cardmember
loans, which may include one or more investments in tranches of the securitization (subordinated securities) and an interest-only strip. Certain estimates and assumptions are required to determine the fair value of the Company&#146;s interest-only
strip, and gains recorded at the time of the sale.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The subordinated securities are accounted for at fair value as Available-for-Sale investment securities and are reported in
investments on the Company&#146;s Consolidated Balance Sheets with unrealized gains (losses) recorded in accumulated other comprehensive (loss) income.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The interest-only strip is
accounted for at fair value and is reported in other assets on the Company&#146;s Consolidated Balance Sheets. Commencing January 1, 2007, the Company records any changes in the fair value of the interest-only strip in securitization income, net in
the Consolidated Statements of Income. Prior to January 1, 2007, the Company accounted for the changes in the fair value of the interest-only strip in other comprehensive (loss) income.</FONT></P>&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="32%" rowSpan=14> <P align=left><FONT face=serif size=2>Management estimates fair value of the subordinated securities using models, where the inputs to the model are based on
observable market inputs.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Management uses models to determine the fair value of the interest-only strip and gain on sale at the time of a cardmember securitization. The models are based
on projections of finance charges and fees paid related to the securitized assets, coupon payments to investors, expected credit losses, average loan life (i.e., monthly payment rate), contractual fees to service the securitized assets, and a
discount rate applied to the cash flows from the interest-only strip that is commensurate with the inherent risk.</FONT></P>&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="32%" colSpan=13> <P align=left><FONT face=serif size=2>As of December 31, 2007, the total fair value of subordinated securities and the interest-only strip was $78 million and $223
million, respectively.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Fair value of the subordinated securities is impacted by external market factors including LIBOR forward
rates.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Fair value of the interest-only strip and gain or loss from the sale of securitization is impacted by changes in the estimates and assumptions used in the valuation models. The
three key economic assumptions and the sensitivity of the current year&#146;s fair value of the interest-only strip to immediate 10 percent and 20 percent adverse changes in these assumptions are as follows:<BR>&nbsp;</FONT></P></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="17%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%">&nbsp;</TD>
<TD noWrap align=right width="3%" colSpan=3><FONT face=serif size=1>Cash</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="17%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%">&nbsp;</TD>
<TD noWrap align=right width="3%" colSpan=3><FONT face=serif size=1>Flows from</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="17%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%">&nbsp;</TD>
<TD noWrap align=right width="3%" colSpan=3><FONT face=serif size=1>Interest-</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="17%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD align=right width="3%" colSpan=3><FONT face=serif size=1>Monthly</FONT> </TD>
<TD noWrap align=right width="2%">&nbsp;</TD>
<TD noWrap align=right width="3%" colSpan=3><FONT face=serif size=1>Expected</FONT> </TD>
<TD noWrap align=right width="2%">&nbsp;</TD>
<TD noWrap align=right width="3%" colSpan=3><FONT face=serif size=2><FONT size=1>only Strips</FONT><FONT size=3> </FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="17%"><I><FONT face=serif size=1>(Millions, except</FONT></I> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD align=right width="3%" colSpan=3><FONT face=serif size=1>Payment</FONT> </TD>
<TD noWrap align=right width="2%">&nbsp;</TD>
<TD noWrap align=right width="3%" colSpan=3><FONT face=serif size=1>Credit</FONT> </TD>
<TD noWrap align=right width="2%">&nbsp;</TD>
<TD noWrap align=right width="3%" colSpan=3><FONT face=serif size=1>Discounted</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="17%"><I><FONT face=serif size=1>rates per annum)</FONT></I> </TD>
<TD noWrap align=left width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=3><FONT face=serif size=1>Rate</FONT> </TD>
<TD noWrap align=right width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=3><FONT face=serif size=1>Losses</FONT> </TD>
<TD noWrap align=right width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=3><FONT face=serif size=1>at</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="17%" bgColor=#c0c0c0><FONT face=serif size=2>Assumption</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>24.7</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>4.3</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>12.0</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="17%"><FONT face=serif size=2>10% adverse</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="17%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; change</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>(14</FONT> </TD>
<TD noWrap align=left width="1%"><FONT size=2>)</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>(22</FONT> </TD>
<TD noWrap align=left width="1%"><FONT size=2>)</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>(0.4</FONT> </TD>
<TD noWrap align=left width="1%"><FONT size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="17%" bgColor=#c0c0c0><FONT face=serif size=2>20% adverse</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="17%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; change</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>(28</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>)</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>(43</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>)</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>(0.9</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>)</FONT> </TD></TR>
<TR>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="17%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="32%" colSpan=13> <P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>This sensitivity analysis does not represent management&#146;s expectations of adverse changes in
these assumptions but is provided as a hypothetical scenario to assess the sensitivity of the fair value of the interest-only strip to changes in key inputs. Management cannot extrapolate changes in fair value based on a 10 percent or 20 percent
change in all key assumptions simultaneously in part because the relationship of the change in one assumption on the fair value of the retained interest is calculated independent from any change in another assumption. Changes in one factor may cause
changes in another, which could magnify or offset the sensitivities.<BR>&nbsp;</FONT></P></TD></TR></TABLE> <P align=justify><FONT face=serif size=1>32</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif
size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><B><FONT face=serif size=1>INCOME
TAXES</FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="31%">&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="32%">&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="32%"><FONT face=serif size=1>Effect if Actual Results Differ</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="31%"><FONT face=serif size=1>Description</FONT>&nbsp; </TD>
<TD noWrap align=left width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="32%"><FONT face=serif size=1>Assumptions/Approach Used</FONT>&nbsp; </TD>
<TD noWrap align=left width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="32%"><FONT face=serif size=1>from Assumptions</FONT>&nbsp; </TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="31%"> <P align=left><FONT face=serif size=2>The Company is subject to the income tax laws of the U.S., its states and municipalities and those of the foreign jurisdictions in
which the Company operates. These tax laws are complex, and the manner in which they apply to the taxpayer&#146;s facts is sometimes open to interpretation. In establishing a provision for income tax expense, the Company must make judgments about
the application of these inherently complex tax laws. The Company establishes a liability for unrecognized tax benefits, which are the differences between a tax position taken or expected to be taken in a tax return and the benefit recognized in the
financial statements.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Deferred tax assets and liabilities are determined based on the differences between the financial statement and tax bases of assets and liabilities using the
enacted tax rates expected to be in effect for the years in which the differences are expected to reverse. A valuation allowance is established when management determines that it is more likely than not that all or some portion of the benefit of the
deferred tax asset will not be realized.</FONT></P></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="32%"> <P align=left><FONT face=serif size=2>In establishing a liability for an unrecognized tax benefit, assumptions may be made in determining whether a tax position is more
likely than not to be sustained upon examination by the taxing authority and also in determining the ultimate amount that is likely to be realized. A tax position is recognized when, based on management&#146;s judgment regarding the application of
income tax laws, it is more likely than not that the tax position will be sustained upon examination. The amount of tax benefit recognized is based on the Company&#146;s assessment of the most likely outcome on ultimate settlement with the taxing
authority. This measurement is based on many factors, including whether a tax dispute may be settled through negotiation with the taxing authority or is only subject to review in the courts. As new information becomes available, the Company
evaluates its tax positions, and adjusts its unrecognized tax benefits, as appropriate.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Since deferred taxes measure the future tax effects of items recognized in the financial
statements, certain estimates and assumptions are required to determine whether it is more likely than not that all or some portion of the benefit of a deferred tax asset will not be realized. In making this assessment, management analyzes and
estimates the impact of future taxable income, reversing temporary differences and available tax planning strategies. These assessments are performed quarterly, taking into account any new information.<BR>&nbsp;</FONT></P></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="32%"> <P align=left><FONT face=serif size=2>If the tax benefit ultimately realized differs from the amount previously recognized in the income tax provision, the Company
recognizes an adjustment to the provision.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Should a change in facts or circumstances lead to a change in judgment about the ultimate realizability of a deferred tax asset, the Company
records or adjusts the related valuation allowance in the period that the change in facts or circumstances occurs, along with a corresponding increase or decrease to the income tax provision.</FONT></P></TD></TR></TABLE><BR> <P align=right><FONT
face=serif size=1>33</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY </FONT></P> <P align=justify><B><FONT face=serif size=2>AMERICAN EXPRESS
COMPANY<BR>CONSOLIDATED RESULTS OF OPERATIONS </FONT></B></P> <P align=justify><B><FONT face=serif size=1>SUMMARY OF THE COMPANY&#146;S FINANCIAL PERFORMANCE </FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="99%" colSpan=13><FONT size=1>Years Ended December 31,</FONT>&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><I><FONT face=serif size=1>(Millions, except per share amounts and ratio data)</FONT></I> </TD>
<TD noWrap align=right width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=serif size=2>2006</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=serif size=2>2005</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Revenues net of interest expense</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>27,731</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>25,154</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>22,425</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=2>Expenses</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>17,824</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>16,989</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>15,614</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Provisions for losses and benefits</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>4,341</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>3,026</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>2,758</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=2>Income from continuing operations</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>4,048</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>3,611</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>3,062</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Net income</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>4,012</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>3,707</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>3,734</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=2>Earnings per common share from<FONT size=3> </FONT>continuing operations &#151; diluted</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>3.39</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>2.92</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>2.43</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Earnings per common share &#151;<FONT style="BACKGROUND-COLOR: #c0c0c0" size=3> </FONT>diluted</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>3.36</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>2.99</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>2.97</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="84%"><FONT face=serif size=2>Return on average equity</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>37.3</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><STRONG><FONT size=2>%</FONT></STRONG> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=serif size=2>34.7</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2>%</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=serif size=2>25.4</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2>%</FONT> </TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD width="100%"><FONT face=serif size=1>Calculated based on $4.0 billion, $3.7 billion, and $3.7 billion of net income, and $10.8 billion, $10.7 billion, and $14.7 billion of average shareholders&#146; equity for the trailing 12 months ending
December 31, 2007, 2006, and 2005, respectively. The increase in the ROE from 2005 to 2006 reflected the impact of the Ameriprise spin-off in 2005.</FONT></TD></TR></TABLE> <P align=justify><B><FONT face=serif size=1>SELECTED STATISTICAL INFORMATION
</FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="99%" colSpan=13><FONT size=1>Years Ended December 31,</FONT>&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><I><FONT face=serif size=1>(Billions, except percentages and where indicated)</FONT></I> </TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=serif size=2>2006</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=serif size=2>2005</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Card billed business</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP><FONT face=serif size=2>:</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><FONT face=serif size=2>United States</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>459.3</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>406.8</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>354.6</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Outside the United States</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>188.0</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>154.7</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>129.8</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><FONT face=serif size=2>Total</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>647.3</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>561.5</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>484.4</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Total cards-in-force </FONT><I><FONT face=serif size=2>(millions)</FONT></I><SUP><FONT face=serif size=2>(b)</FONT></SUP><FONT face=serif size=2>:</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><FONT face=serif size=2>United States</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>52.3</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>48.1</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>43.0</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Outside the United States</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>34.1</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>29.9</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>28.0</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><FONT face=serif size=2>Total</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>86.4</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>78.0</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>71.0</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Basic cards-in-force </FONT><I><FONT face=serif size=2>(millions)</FONT></I><SUP><FONT face=serif size=2>(b)</FONT></SUP><FONT face=serif size=2>:</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><FONT face=serif size=2>United States</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>40.9</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>37.1</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>32.8</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Outside the United States</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>29.2</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>25.4</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>23.2</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><FONT face=serif size=2>Total</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>70.1</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>62.5</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>56.0</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Average discount rate</FONT><SUP><FONT face=serif size=2>(c)</FONT></SUP> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>2.56</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><STRONG><FONT size=2>%</FONT></STRONG> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>2.57</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>2.58</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><FONT face=serif size=2>Average basic cardmember<FONT size=3> </FONT>spending </FONT><I><FONT face=serif size=2>(dollars)</FONT></I><SUP><FONT face=serif
size=2>(d)</FONT></SUP> </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>12,106</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>11,201</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>10,445</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Average fee per card<FONT style="BACKGROUND-COLOR: #c0c0c0" size=3> </FONT><EM>(dollars)</EM></FONT><SUP><FONT face=serif size=2>(d)
</FONT></SUP> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>32</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>32</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>35</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD width="100%"><FONT face=serif size=1>Card billed business includes activities (including cash advances) related to proprietary cards, cards issued under network partnership agreements, and certain insurance fees charged on proprietary cards.
Card billed business is reflected in the United States or outside the United States based on where the cardmember is domiciled.</FONT></TD></TR>
<TR>
<TD colSpan=2><FONT size=1>&nbsp;</FONT>&nbsp;</TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(b)</FONT></TD>
<TD width="100%"><FONT face=serif size=1>Total cards-in-force represents the number of cards that are issued and outstanding. Proprietary basic consumer cards-in-force includes basic cards issued to the primary account owner and does not include
additional supplemental cards issued on that account. Proprietary basic small business and corporate cards-in-force include basic and supplemental cards issued to employee cardmembers. Non-proprietary basic cards-in-force includes all cards that are
issued and outstanding under network partnership agreements.</FONT></TD></TR>
<TR>
<TD colSpan=2><FONT size=1>&nbsp;</FONT>&nbsp;</TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(c)</FONT></TD>
<TD width="100%"><FONT face=serif size=1>This calculation is designed to approximate merchant pricing. It represents the percentage of billed business (both proprietary and Global Network Services) retained by the Company from merchants it acquires,
prior to payments to third parties unrelated to merchant acceptance.</FONT></TD></TR>
<TR>
<TD colSpan=2><FONT size=1>&nbsp;</FONT>&nbsp;</TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(d)</FONT></TD>
<TD width="100%"><FONT face=serif size=1>Average basic cardmember spending and average fee per card are computed from proprietary card activities only. Average fee per card is computed based on net card fees including the amortization of deferred
direct acquisition costs (which beginning prospectively as of July 1, 2006, was reclassified from other, net expense to a reduction in net card fees), divided by average worldwide proprietary cards-in-force. The adjusted average fee per card is
computed in the same manner, but excludes amortization of deferred direct acquisition costs. The adjusted average fee per card was $36 and $35, in 2007 and 2006, respectively, and the amount of amortization excluded was $288 million and $147 million
for 2007 and 2006, respectively. In 2005, the average fee per card in the table above was greater than in 2007 and 2006 as 2005 was prior to the reclassification discussed above. The Company presents adjusted average fee per card because management
believes that this metric presents a better picture of card fee pricing across a range of its proprietary card products.</FONT></TD></TR></TABLE> <P align=justify><FONT face=serif size=1>34</FONT></P> <HR align=center width="100%" noShade SIZE=2>
<PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><B><FONT face=serif size=2>AMERICAN EXPRESS COMPANY
</FONT></B></P> <P align=justify><B><FONT face=serif size=1>SELECTED STATISTICAL INFORMATION (CONTINUED)</FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="100%" colSpan=11><FONT size=1>Years Ended December 31,</FONT>&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><I><FONT face=serif size=1>(Billions, except percentages and where indicated)</FONT></I> </TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD noWrap align=right width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face=serif size=2>2006</FONT> </TD>
<TD noWrap align=right width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face=serif size=2>2005</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Worldwide cardmember receivables:</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><FONT face=serif size=2>Total receivables</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>40.1</FONT></B> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>37.4</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>34.2</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>90 days past due<FONT style="BACKGROUND-COLOR: #c0c0c0" size=3> </FONT>as a % of total</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>3.0</FONT></B> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0><STRONG><FONT size=2>%</FONT></STRONG>&nbsp;&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>2.8</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT size=2>%</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>2.8</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><FONT face=serif size=2>Loss reserves </FONT><I><FONT face=serif size=2>(millions)</FONT></I><FONT face=serif size=2>:</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>1,149</FONT></B> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>981</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>942</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; % of receivables</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>2.9</FONT></B> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT size=2><STRONG>%</STRONG></FONT><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>2.6</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT size=2>%</FONT>&nbsp;&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>2.8</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; % of 90 days past due</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>95</FONT></B> </TD>
<TD noWrap align=left width="2%"><STRONG><FONT size=2>%</FONT></STRONG> </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>95</FONT> </TD>
<TD noWrap align=left width="2%"><FONT size=2>%</FONT>&nbsp;&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>97</FONT> </TD>
<TD noWrap align=left width="1%"><FONT size=2>%</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Net loss ratio as a %<FONT style="BACKGROUND-COLOR: #c0c0c0" size=3> </FONT>of charge volume</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>0.24</FONT></B> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0><STRONG><FONT size=2>%</FONT></STRONG> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>0.24</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT size=2>%</FONT>&nbsp;&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>0.26</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><FONT face=serif size=2>Worldwide cardmember<FONT size=3> </FONT>lending &#151; owned basis</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP><FONT face=serif size=2>:</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Total loans</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>54.5</FONT></B> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>43.3</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>33.1</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><FONT face=serif size=2>30 days past due as a % of total</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>3.4</FONT></B> </TD>
<TD noWrap align=left width="2%"><STRONG><FONT size=2>%</FONT></STRONG>&nbsp;&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>2.7</FONT> </TD>
<TD noWrap align=left width="2%"><FONT size=2>%</FONT>&nbsp;&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>2.5</FONT> </TD>
<TD noWrap align=left width="1%"><FONT size=2>%</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Loss reserves </FONT><I><FONT face=serif size=2>(millions)</FONT></I><FONT face=serif size=2>:</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><FONT face=serif size=2>Beginning balance</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>1,171</FONT></B> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>996</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>972</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Provision</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,615</FONT></B> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>1,507</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>1,227</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Net write-offs</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>(1,990</FONT></B> </TD>
<TD noWrap align=left width="2%"><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>(1,359</FONT> </TD>
<TD noWrap align=left width="2%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>(1,155</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Other</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>35</FONT></B> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>27</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(48</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><FONT face=serif size=2>Ending balance</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>1,831</FONT></B> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>1,171</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>996</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><FONT face=serif size=2>% of loans</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>3.4</FONT></B> </TD>
<TD noWrap align=left width="2%"><STRONG><FONT size=2>%</FONT></STRONG> </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>2.7</FONT> </TD>
<TD noWrap align=left width="2%"><FONT size=2>%</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>3.0</FONT> </TD>
<TD noWrap align=left width="1%"><FONT size=2>%</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>% of past due</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>100</FONT></B> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0><STRONG><FONT size=2>%</FONT></STRONG> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>98</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT size=2>%</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>122</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><FONT face=serif size=2>Average loans</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>47.2</FONT></B> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>36.5</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>28.3</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Net write-off rate</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>4.2</FONT></B> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0><STRONG><FONT size=2>%</FONT></STRONG> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>3.7</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT size=2>%</FONT>&nbsp;&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>4.1</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><FONT face=serif size=2>Net finance<FONT size=3> </FONT>revenue</FONT><SUP><FONT face=serif size=2>(b)</FONT></SUP><FONT face=serif size=2>/average loans</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>9.4</FONT></B> </TD>
<TD noWrap align=left width="2%"><STRONG><FONT size=2>%</FONT></STRONG> </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>9.3</FONT> </TD>
<TD noWrap align=left width="2%"><FONT size=2>%</FONT>&nbsp;&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>8.9</FONT> </TD>
<TD noWrap align=left width="1%"><FONT size=2>%</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Worldwide cardmember<FONT style="BACKGROUND-COLOR: #c0c0c0" size=3> </FONT>lending &#151; managed basis</FONT><SUP><FONT face=serif size=2>(c)</FONT></SUP><FONT face=serif
size=2>:</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><FONT face=serif size=2>Total loans</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>77.2</FONT></B> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>63.5</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>54.3</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>30 days past due<FONT style="BACKGROUND-COLOR: #c0c0c0" size=3> </FONT>as a % of total</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>3.2</FONT></B> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0><STRONG><FONT size=2>%</FONT></STRONG> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>2.6</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT size=2>%</FONT>&nbsp;&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>2.4</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><FONT face=serif size=2>Loss reserves </FONT><I><FONT face=serif size=2>(millions)</FONT></I><FONT face=serif size=2>:</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Beginning balance</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,622</FONT></B> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>1,469</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>1,475</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Provision</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>3,726</FONT></B> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>1,991</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>2,097</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Net write-offs</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>(2,799</FONT></B> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(1,933</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(2,055</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Other</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>32</FONT></B> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>95</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>(48</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Ending balance</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,581</FONT></B> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>1,622</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>1,469</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><FONT face=serif size=2>% of loans</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>3.3</FONT></B> </TD>
<TD noWrap align=left width="2%"><STRONG><FONT size=2>%</FONT></STRONG>&nbsp;&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>2.6</FONT> </TD>
<TD noWrap align=left width="2%"><FONT size=2>%</FONT>&nbsp;&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>2.7</FONT> </TD>
<TD noWrap align=left width="1%"><FONT size=2>%</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>% of past due</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>106</FONT></B> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0><STRONG><FONT size=2>%</FONT></STRONG>&nbsp;&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>97</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT size=2>%</FONT>&nbsp;&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>114</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Average loans</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>68.3</FONT></B> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>56.9</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>48.9</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Net write-off rate</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>4.1</FONT></B> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0><STRONG><FONT size=2>%</FONT></STRONG>&nbsp;&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>3.4</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT size=2>%</FONT>&nbsp;&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>4.2</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="85%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Net finance<FONT size=3> </FONT>revenue</FONT><SUP><FONT face=serif size=2>(b)</FONT></SUP><FONT face=serif size=2>/average
loans</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>9.4</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%"><STRONG><FONT size=2>%</FONT></STRONG>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>9.3</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%"><FONT size=2>%</FONT>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>9.2</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2>%</FONT> </TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD width="100%"><FONT face=serif size=1>&#147;Owned,&#148; a GAAP basis measurement, reflects only cardmember loans included on the Company&#146;s Consolidated Balance Sheets.</FONT></TD></TR>
<TR>
<TD colSpan=2>&nbsp;</TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(b)</FONT></TD>
<TD width="100%"><FONT face=serif size=1>Net finance revenue represents cardmember lending finance revenue less cardmember lending interest expense.</FONT></TD></TR>
<TR>
<TD colSpan=2>&nbsp;</TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(c)</FONT></TD>
<TD width="100%"><FONT face=serif size=1>Includes on-balance sheet cardmember loans and off-balance sheet securitized cardmember loans. The difference between the &#147;owned basis&#148; (GAAP) information and &#147;managed basis&#148; information
is attributable to the effects of securitization activities. See the U.S. Card Services segment for additional information on managed basis presentation.</FONT></TD></TR></TABLE> <P align=center><FONT face=serif size=2>* * *</FONT></P> <P
align=justify><FONT face=serif size=2>The following discussions regarding Consolidated Results of Operations and Consolidated Liquidity and Capital Resources are presented on a basis consistent with GAAP unless otherwise noted. </FONT></P> <P
align=justify><B><FONT face=serif size=1>CONSOLIDATED RESULTS OF OPERATIONS FOR THE THREE YEARS ENDED DECEMBER 31, 2007<BR></FONT></B><FONT face=serif size=2>The Company&#146;s 2007 consolidated income from continuing operations rose $437 million or
12 percent to $4.0 billion and diluted earnings per share (EPS) from continuing operations rose $0.47 or 16 percent to $3.39. Consolidated income from continuing operations for 2006 increased $549 million or 18 percent from 2005 and diluted EPS from
continuing operations for 2006 increased $0.49 or 20 percent from 2005.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company&#146;s 2007 consolidated net income increased $305 million or 8 percent to $4.0 billion, and diluted
EPS increased $0.37 or 12 percent to $3.36. Consolidated net income for 2006 and 2005 was $3.7 billion. Net income for 2007 included a loss of $36 million from discontinued operations compared to $96 million and $672 million of income from
discontinued operations in 2006 and 2005, respectively.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company&#146;s revenues and expenses, including provisions for losses and benefits, are affected by changes in the relative
values of non-U.S. currencies to the U.S. dollar. The currency rate changes increased the growth rates of revenues net of interest </FONT><FONT face=serif size=2>expense, total expenses, and provisions for losses and benefits by approximately 2
percent in 2007 and 1 percent in 2006.<BR></FONT><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Results from continuing operations for 2007 included:</FONT></P> <UL style="TEXT-ALIGN: justify"> <LI><FONT face=serif
size=2>A $1.13 billion ($700 million after-tax) gain for the initial payment due March 31, 2008, from Visa as part of the litigation settlement;<BR>&nbsp;</FONT> <LI><FONT face=serif size=2>$140 million of tax benefits primarily related to the
resolution of prior years&#146; tax items and the treatment of prior years&#146; card fee income;<BR>&nbsp;</FONT> <LI><FONT face=serif size=2>An $80 million ($50 million after-tax) gain in connection with the initial adoption of Statement of
Financial Accounting Standards (SFAS) No. 155, &#147;Accounting for Certain Hybrid Financial Instruments &#150; an amendment of FASB Statements No. 133 and 140&#148; (SFAS No. 155);<BR>&nbsp;</FONT> <LI><FONT face=serif size=2>A $63 million ($39
million after-tax) gain relating to amendments to the Company&#146;s U.S. pension plans, effective July 1, 2007, that reduced projected pension obligations to plan participants;<BR>&nbsp;</FONT> <LI><FONT face=serif size=2>A $685 million ($430
million after-tax) charge related to enhancements to the method of estimating Membership Rewards liability;<BR>&nbsp;</FONT> <LI><FONT face=serif size=2>A $438 million ($274 million after-tax) credit-related charge due to experienced deterioration
of credit indicators in the latter part of 2007. This fourth quarter charge was split between U.S. Card Services&#146; cardmember lending</FONT> </LI></UL> <P align=right><FONT face=serif size=1>35</FONT></P> <HR align=center width="100%" noShade
SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW <BR></FONT><FONT face=serif size=2><FONT size=1>AMERICAN EXPRESS COMPANY</FONT></FONT></P> <P style="PADDING-LEFT: 30pt"
align=justify><FONT face=serif size=2>and cardmember receivables of $288 million and $96 million, respectively, and included $54 million relating to a reduction in the fair market value of the Company&#146;s retained subordinated interest in
securitized cardmember loans;</FONT></P> <UL> <LI><FONT face=serif size=2>$211 million ($131 million after-tax) of incremental</FONT> <FONT face=serif size=2>business-building costs;<BR>&nbsp;</FONT> <LI><FONT face=serif size=2>$81 million ($41
million after-tax) third quarter 2007 initial</FONT> <FONT face=serif size=2>charge related to the sale of certain AEIDC securities and</FONT> <FONT face=serif size=2>the reclassification of the AEIDC investment portfolio from</FONT> <FONT
face=serif size=2>Available-for-Sale to the Trading investment category as a</FONT> <FONT face=serif size=2>result of the related AEB sale agreement&#146;s impact on the</FONT> <FONT face=serif size=2>holding period for these investments; <BR>&nbsp;
</FONT> <LI><FONT face=serif size=2>$74 million ($46 million after-tax) of Visa litigation-related</FONT> <FONT face=serif size=2>costs; and<BR>&nbsp;</FONT> <LI><FONT face=serif size=2>A $50 million ($31 million after-tax) contribution to the
American Express Charitable Fund.</FONT></LI></UL> <P align=justify><FONT face=serif size=2>Also included in the 2007 results, were $66 million ($43 million after-tax) of reengineering costs related to the Company&#146;s business travel, prepaid
services, international payments business and technology areas.</FONT></P> <P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Results from continuing operations for 2006 included:</FONT></P> <UL> <LI> <P align=justify><FONT face=serif
size=2>$177 million ($155 million after-tax) of gains related to the sales of the Company&#146;s card and merchant-related activities in Brazil, Malaysia, and Indonesia;</FONT></P> <LI> <P align=justify><FONT face=serif size=2>$68 million ($42
million after-tax) of gains related to a rebalancing program in the fourth quarter of 2006 to better align the maturity profile of the Travelers Cheque and Gift Card investment portfolio with its business liquidity needs;</FONT></P> <LI> <P
align=justify><FONT face=serif size=2>$174 million ($113 million after-tax) of charges associated with certain adjustments made to the Membership Rewards reserve models in the U.S. and outside the U.S.; and</FONT></P> <LI> <P align=justify><FONT
face=serif size=2>A $72 million ($47 million after-tax) reduction in cardmember lending finance revenue, and securitization income, net related to higher than anticipated cardmember completion of consumer debt repayment programs and certain
associated payment waivers.</FONT></P></LI></UL> <P align=justify><FONT face=serif size=2>Also included in the 2006 results, were $152 million ($99 million after-tax) of reengineering costs related to business travel, operations, finance and
technology areas and a favorable impact from lower early credit write-offs, primarily related to bankruptcy legislation enacted in October 2005 and lower than expected costs associated with Hurricane Katrina that were provided for in 2005, partially
offset by a higher provision for losses in Taiwan due primarily to the impact of industry-wide credit issues.</FONT></P> <P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Results from continuing operations for 2005
included:</FONT></P> <UL> <LI><FONT face=serif size=2>Tax benefits of $239 million resulting from the resolution</FONT> <FONT face=serif size=2>of previous years&#146; tax items and the finalization of state</FONT> <FONT face=serif size=2>tax
returns;<BR>&nbsp;</FONT> <LI><FONT face=serif size=2>A $112 million ($73 million after-tax) benefit from the</FONT> <FONT face=serif size=2>recovery of September 11, 2001-related insurance claims;</FONT> <FONT face=serif size=2>and<BR>&nbsp;</FONT>
<LI><FONT face=serif size=2>A $49 million ($32 million after-tax) provision to reflect the</FONT> <FONT face=serif size=2>estimated costs related to Hurricane Katrina.</FONT></LI></UL> <P align=justify><FONT face=serif size=2>Also included in the
2005 results were $273 million ($174 million after-tax) of reengineering costs related to business travel, operations, finance and technology areas and an increase in the provisions for losses related to increased bankruptcy filings resulting from
the change in bankruptcy legislation.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Revenues Net of Interest Expense</STRONG><BR></FONT><FONT face=serif size=2>Consolidated revenues net of interest expense for 2007 of $27.7 billion
were up $2.6 billion or 10 percent from 2006 primarily due to increased interest income, higher discount revenue, greater net card fees, and higher securitization income, net, partially offset by increased interest expense and lower other revenues
in 2007. Consolidated revenues net of interest expense of $25.2 billion for 2006 were $2.7 billion or 12 percent higher than 2005 due to increased discount revenue, greater interest income, higher other revenues, and increased securitization income,
net, partially offset by greater interest expense. Consolidated revenues net of interest expense in 2006 also included a $72 million reduction in cardmember lending finance revenue and securitization income, net related to higher than anticipated
cardmember completion of consumer debt repayment programs and certain associated payment waivers as well as a reclassification of certain card acquisition-related costs, beginning prospectively July 1, 2006, from other expenses to a reduction in net
card fees.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Discount revenue for 2007 rose $1.6 billion or 12 percent as compared to 2006 to $14.6 billion as a result of a 15 percent increase in worldwide billed business. The slower
growth in discount revenue compared to billed business growth reflected the relatively faster growth in billed business related to GNS</FONT><B><FONT face=serif size=2></FONT></B> <FONT face=serif size=2>where the Company shares the discount revenue
with third-party card issuing partners, and higher cash-back rewards costs and corporate incentive payments which are reported as reductions to revenue (contra-revenue). The 15 percent increase in worldwide billed business in 2007 reflected
increases in average spending per proprietary basic card, growth in basic cards-in-force and a 49 percent increase in billed business related to GNS from 2006. The average discount rate was 2.56 percent, 2.57 percent, and 2.58 percent for
2007,</FONT><B><FONT face=serif size=2></FONT></B> <FONT face=serif size=2>2006, and 2005, respectively. Over time, selective repricing initiatives, changes in the mix of business, and volume-related pricing</FONT></P> <P align=justify><FONT
face=serif size=2><FONT face=serif size=1>36</FONT></FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><FONT face=serif size=2>discounts for merchants
acquired by the Company likely will result in some erosion of the average discount rate.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>U.S. billed business and billed business outside the United States were up 13 percent and 22
percent, respectively, in 2007, due to an increase in average spending per proprietary basic card and growth in basic cards-in-force. The growth in the billed business both within the U.S. and outside the U.S. reflected increases within the
Company&#146;s consumer card business, small business spending, Corporate Services volumes and the increase in GNS business.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The table below summarizes selected statistics for which
increases in 2007 have resulted in discount revenue growth:</FONT></P>
<TABLE style="FONT-SIZE: 12pt; LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="87%"></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%"></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="4%"></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%"></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Percentage</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="4%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Increase</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="4%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Assuming</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="4%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>No Changes</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="4%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>in Foreign</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Percentage</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Exchange</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%"></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Increase</FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Rates</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><B><FONT face=serif size=1><FONT face=serif size=2>Worldwide<SUP><FONT size=1>(a)</FONT></SUP></FONT></FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><FONT face=serif size=1><FONT face=serif size=2>Billed business</FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%"><FONT face=serif size=2>15</FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>%</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%"><FONT face=serif size=2>13</FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>%</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=1><FONT face=serif size=2>Average spending per proprietary basic card</FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>8</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>6</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><FONT face=serif size=1><FONT face=serif size=2>Basic cards-in-force</FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%"><FONT face=serif size=2>12</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%"><FONT face=serif size=2></FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><B><FONT face=serif size=1><FONT size=2>United States</FONT><SUP>(a)</SUP></FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><FONT face=serif size=1><FONT face=serif size=2>Billed business</FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%"><FONT face=serif size=2>13</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%"><FONT face=serif size=2></FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=1><FONT face=serif size=2>Average spending per proprietary basic card</FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>4</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><FONT face=serif size=1><FONT face=serif size=2>Basic cards-in-force</FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%"><FONT face=serif size=2>10</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%"><FONT face=serif size=2></FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=1><FONT size=2>Proprietary consumer card billed business</FONT><SUP>(b)</SUP></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>12</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><FONT face=serif size=1><FONT face=serif size=2>Proprietary small business billed business<SUP><FONT size=1>(b)</FONT></SUP></FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%"><FONT face=serif size=2>15</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%"><FONT face=serif size=2></FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=1><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0">Proprietary Corporate Services billed b</FONT>usiness<SUP><FONT size=1>(c)</FONT></SUP></FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>10</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><B><FONT face=serif size=1><FONT face=serif size=2>Outside the United States<SUP><FONT size=1>(a)</FONT></SUP></FONT></FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%"><FONT face=serif size=2></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%"><FONT face=serif size=2></FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=1><FONT face=serif size=2>Billed business</FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>22</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>14</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><FONT face=serif size=1><FONT face=serif size=2>Average spending per proprietary basic card</FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%"><FONT face=serif size=2>18</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%"><FONT face=serif size=2>10</FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=1><FONT face=serif size=2>Basic cards-in-force</FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>15</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><FONT face=serif size=1><FONT face=serif size=2>Proprietary consumer and small business billed business<SUP><FONT size=1>(d)</FONT></SUP></FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%"><FONT face=serif size=2>14</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%"><FONT face=serif size=2>6</FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="87%" bgColor=#c0c0c0><FONT size=2>Proprietary Corporate Services billed business</FONT><SUP><FONT size=1>(c)</FONT></SUP></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>22</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>13</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1><FONT size=1>(a)&nbsp;&nbsp;&nbsp;</FONT></FONT></TD>
<TD vAlign=top noWrap></TD>
<TD width="100%"><FONT face=serif size=1><FONT face=serif size=1>Captions in the table above not designated as &#147;proprietary&#148; include both proprietary and Global Network Services data.</FONT></FONT></TD></TR>
<TR>
<TD width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1><FONT face=serif size=1>(b)</FONT></FONT></TD>
<TD vAlign=top noWrap></TD>
<TD width="100%"><FONT face=serif size=1><FONT face=serif size=1>Included in the U.S. Card Services segment.</FONT></FONT></TD></TR>
<TR>
<TD width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1><FONT face=serif size=1>(c)</FONT></FONT></TD>
<TD vAlign=top noWrap></TD>
<TD width="100%"><FONT face=serif size=1><FONT face=serif size=1>Included in the Global Commercial Services segment.</FONT></FONT></TD></TR>
<TR>
<TD width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1><FONT size=1>(d)</FONT></FONT></TD>
<TD vAlign=top noWrap></TD>
<TD width="100%"><FONT face=serif size=1><FONT face=serif size=1>Included in the International Card Services segment.</FONT></FONT></TD></TR></TABLE> <P align=justify><FONT face=serif size=2>Assuming no changes in foreign exchange rates, total
billed business outside the United States reflected low double-digit proprietary growth in Europe and Canada, high single-digit growth in Asia Pacific, and a small decline in Latin America.</FONT><B><FONT face=serif size=2></FONT></B> <FONT
face=serif size=2>Assuming no changes in foreign exchange rates and excluding the impact of the sales in Brazil, Malaysia, and Indonesia during 2006, Asia Pacific and Latin America also exhibited double-</FONT><FONT face=serif size=2>digit
proprietary growth, and total proprietary growth outside the United States was 11 percent.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The increase in 2007 in overall cards-in-force within both proprietary and GNS reflected
continued strong card acquisitions as well as continued favorable average customer retention levels. In 2007, 8.4 million cards were added in the U.S. and non-U.S. businesses combined. During 2006, discount revenue rose $1.5 billion or 13 percent to
$13.0 billion compared to 2005 as a result of a 16 percent increase in worldwide billed business, partially offset by a lower average discount rate, relatively faster growth in billed business related to GNS, and higher cash-back rewards costs. The
16 percent increase in worldwide billed business in 2006 reflected increases in average spending per proprietary basic card, growth in cards-in-force, and a 48 percent increase in billed business related to GNS from
2005.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Travel commissions and fees increased $148 million or 8 percent to $1.9 billion in 2007 reflecting a 13 percent increase in worldwide travel sales primarily driven by higher
airline ticket prices. Travel commissions and fees in 2006 of $1.8 billion were unchanged from 2005 as a 6 percent increase in travel sales was offset by a moderately reduced level of transactions and lower average revenue per transaction, due in
part to increased online bookings.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Other commissions and fees increased $184 million or</FONT> <FONT face=serif size=2>8 percent to $2.4 billion in 2007 and $127 million or 6 percent in
2006 to $2.2 billion due to higher assessments, increases in foreign exchange conversion fees, and other service fees.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Net card fees increased $56 million or 3 percent to $2.1 billion
in 2007 due to card growth partially offset by the reclassification of certain card acquisition-related costs beginning July 1, 2006, from operating expenses to a reduction in net card fees. In 2006, net card fees decreased $39 million or 2 percent
to $2.0 billion as the benefit of card growth was offset by the reclassification of certain card acquisition-related costs as mentioned above.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Securitization income, net increased $18
million or 1 percent to $1.5 billion in 2007 due to a larger average balance of securitized loans, higher net gains from securitization, the $80 million impact of the initial adoption of SFAS No. 155 previously discussed, and a reduction in revenue
a year ago from higher than anticipated cardmember completion of consumer debt repayment programs and certain associated payment waivers. These favorable impacts were partially offset by an increase in write-offs, a $54 million reduction in the fair
market value of the Company&#146;s retained subordinated interests in securitized cardmember loans, and greater interest expense due to a higher coupon rate paid to certificate holders.</FONT><B><FONT face=serif size=2></FONT></B> <FONT face=serif
size=2>Securitization income, net increased $229 million or 18 percent to $1.5 billion in 2006 as a higher trust portfolio yield and a decrease in trust portfolio write-offs were partially offset by</FONT></P> <P align=right><FONT face=serif
size=1>37</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW <BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><FONT face=serif size=2>greater interest expense
due to a higher coupon rate paid to certificate holders, a lower average securitization balance, and the impact of higher than anticipated cardmember completion of consumer debt repayment programs and certain associated payment waivers.&nbsp;<BR>
</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Other revenues in 2007 decreased $44 million or 3 percent to $1.6 billion as higher network, merchant, publishing, and insurance-related revenues were more than offset by the $105 million
of charges recorded in the third and fourth quarters of 2007, related to the reclassification of AEIDC&#146;s investment portfolio as previously mentioned and a positive impact in 2006 related to the rebalancing of the Company&#146;s Travelers
Cheque and Gift Card investment portfolio. Other revenues increased $372 million or 28 percent to $1.7 billion in 2006 primarily due to $68 million of gains related to the rebalancing of the Company&#146;s Travelers Cheque and Gift Card investment
portfolio as discussed previously, fees associated with transition services agreements with Ameriprise as well as higher network partner-related fees.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Interest income rose $1.7 billion
or 29 percent to $7.4 billion in 2007 primarily reflecting an increase in cardmember lending finance revenue, which grew $1.6 billion or 34 percent due to a 29 percent increase in average worldwide cardmember lending balances primarily reflecting
spending growth on lending </FONT><FONT face=serif size=2>products and new cardmembers acquired, as well as a higher </FONT><FONT face=serif size=2>portfolio yield. During 2006, interest income increased $1.3 billion or 30 percent to $5.7 billion,
reflecting an increase in cardmember lending finance revenue due to growth in average worldwide lending balances and a higher portfolio yield.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Interest expense increased $1.1 billion or
40 percent to $3.8 billion in 2007, reflecting a $544 million or 35 percent increase in charge card and other interest expense and a $542 million or 45 percent increase in cardmember lending interest expense due to increased debt funding levels in
support of growth in receivable and loan balances, respectively, and a higher effective cost of funds. Interest expense of $2.7 billion in 2006 was $761 million or 38 percent higher than 2005 reflecting a higher effective cost of funds and increased
debt funding levels in support of growth in loans and receivable balances.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Expenses</STRONG><BR></FONT><FONT face=serif size=2>Consolidated expenses for 2007 were $17.8 billion, up $835
million or 5 percent from $17.0 billion in 2006. The increase in 2007 was primarily driven by increased marketing, promotion, rewards and cardmember services expenses and higher human resources expenses, partially offset by lower other, net
expenses.</FONT><B><FONT face=serif size=2></FONT></B> <FONT face=serif size=2>Consolidated expenses for 2006 were $17.0 billion, up $1.4 billion or 9 percent from $15.6 billion in 2005. The increase in 2006 was driven primarily by higher marketing,
promotion, rewards and cardmember services expenses, increased human resources expenses, and greater professional services expenses. Consolidated expenses in 2007, 2006, and 2005 also included</FONT> <FONT face=serif size=2>$66 million, $152 million
and $273 million, respectively, of reengineering costs primarily within the Company&#146;s business travel, prepaid services, international consumer and small business services, and technology areas in 2007 and within the business travel,
operations, finance, and technology areas in 2006 and 2005.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Marketing, promotion, rewards and cardmember services expenses increased $1.3 billion or 20 percent to $7.8 billion in 2007,
reflecting a $685 million charge related to the Membership Rewards liability due to enhancements to the method of liability estimation as discussed above, a higher redemption rate, higher volume-related rewards costs, and incremental marketing and
promotion and business-building costs, partially offset by the impact of charges in 2006 associated with adjustments made to the Membership Rewards reserve models.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Marketing, promotion,
rewards and cardmember services expenses increased $681 million or 12 percent to $6.5 billion in 2006 reflecting greater rewards costs and higher marketing and promotion expenses. The higher rewards costs continued to reflect volume growth, a higher
redemption rate, and strong cardmember loyalty program participation. Rewards costs in 2006 included $174 million of charges related to certain adjustments made to the Membership Rewards reserve model in the United States and outside the United
States. Marketing expenses reflected relatively high levels of spending related to various business-building initiatives, but lower costs versus 2005 related to the Company&#146;s ongoing global &#147;MyLife, MyCard<SUP><FONT
size=1>(SM)</FONT></SUP></FONT><FONT face=serif size=2>&#148; advertising campaign, which was in a more active phase during 2005.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Human resources expenses increased $398 million or 8
percent to $5.4 billion in 2007 due to a higher level of employees and merit increases, partially offset by the $63 million pension-related gain previously discussed and lower severance-related costs compared to 2006. The increased level of
employees primarily reflected employee additions related to customer service volumes and initiatives and the acquisition of Harbor Payments, Inc. on December 31, 2006, and the acquisition of a travel services business in 2007. Human resources
expenses in 2006 increased $295 million or 6 percent to $5.0 billion compared to 2005 due to merit increases and larger benefit-related costs, partially offset by a relatively flat level of employees and lower severance-related costs compared to
2005. Reengineering costs in 2007, 2006, and 2005, included $49 million, $111 million, and $195 million, respectively, of severance, of which $34 million, $89 million, and $159 million was restructuring-related and is included within human resources
expenses.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Professional services expenses remained flat in 2007 compared to 2006 and increased $283 million or 14 percent in 2006 due to higher technology service fees, greater
business and service-related volumes and increased credit and collection costs.</FONT></P> <P align=justify><FONT face=serif size=1>38</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif
size=2>Other, net expenses in 2007 decreased $969 million or 71 percent to $389 million compared to 2006 driven by a gain of $1.13 billion related to the settlement of litigation with Visa, and the reclassification of certain card-acquisition costs
to card fee revenue beginning July 1, 2006, partially offset by the $177 million gain related to the sale of the Company&#146;s card and merchant-related activities in Brazil, Malaysia, and Indonesia in 2006, litigation expenses of $74 million
related to settlement with Visa, and a $50 million contribution to the American Express Charitable Fund. Other, net expenses in 2006 increased $55 million or 4 percent to $1.4 billion compared to 2005 due to the September 11, 2001-related insurance
settlement in 2005 and higher volume and technology-related costs in 2006 offset by the reclassification of certain card-acquisition costs to card fee revenue beginning July 1, 2006, and the 2006 gains on the sales of the Company&#146;s card and
merchant-related activities in Brazil, Malaysia, and Indonesia.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Provisions for Losses and Benefits</STRONG><BR></FONT><FONT face=serif size=2>Consolidated provisions for losses and benefits
in 2007 increased $1.3 billion or 43 percent over last year to $4.3 billion reflecting a $1.1 billion or 70 percent increase in the cardmember lending provision and a $205 million or 22 percent increase in the charge card provision. The increase in
cardmember lending provision for losses was due to higher write-off and delinquency rates, increased loan volumes, and the charge for credit-related trends previously discussed. The increase in charge card provision was due to the additional charge
for credit-related trends previously discussed and higher business volumes.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Consolidated provisions for losses and benefits in 2006 increased $268 million or 10 percent over 2005 to
$3.0 billion as the cardmember lending and other (including investment certificates) provisions growth of $274 million or 20 percent and $97 million or 26 percent, respectively, was partially offset by a $103 million or 10 percent decline in the
charge card provision. The increase in the lending provision was driven by increased loan volumes globally and higher loss rates outside the United States, primarily in Taiwan, partially offset by the favorable impact of lower bankruptcy-related
charge-offs and strong credit quality in the United States, and lower than expected costs related to Hurricane Katrina losses that were provided for in 2005. The other provision (including investment certificates) rose due to higher interest rates
on larger investment certificate balances and increased merchant-related reserves. Compared to 2005, the charge provision reflected the lower loss rate, lower than expected costs for Hurricane Katrina losses that were provided for in 2005, and
improved results from collection activities.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Income Taxes</STRONG><BR></FONT><FONT face=serif size=2>The effective tax rate was 27 percent in 2007 compared to 30 percent in 2006 and 24
percent in 2005. The effective tax rate in 2007 as compared to 2006 included tax benefits of $140 million from Internal Revenue Service (IRS) settlements and resolution of prior years&#146; tax items and lower tax rates applied to the earnings of
the Company&#146;s non-U.S. subsidiaries, partially offset by an increase in state and local income tax. The effective tax rate in 2006 as compared to 2005 reflected higher state and local income taxes in 2006, and 2005 included the benefit related
to the resolution of IRS audits of previous years&#146; tax returns.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Discontinued Operations</STRONG><BR></FONT><FONT face=serif size=2>(Loss) Income from discontinued operations, net of
tax, was ($36) million, $96 million and $672 million in 2007, 2006, and 2005, respectively. Loss from discontinued operations, net of tax, during 2007, primarily related to AEB&#146;s results from operations, which included $71 million ($45 million
after-tax) compliance-related remediation costs and $60 million pretax and after-tax of regulatory and legal expense, as well as businesses disposed of in previous years. Income from discontinued operations, net of tax, during 2006, reflected AEB
results from operations, including an $88 million ($40 million after-tax) gain from the sale of its investment in Egyptian American Bank and a $48 </FONT><FONT face=serif size=2>million ($22 million after-tax) loss related to the sale of its
international banking activities in Brazil, as well as a tax benefit related to Ameriprise upon finalization of the Company&#146;s 2005 U.S. federal tax return and costs related to businesses disposed of in previous years. 2005 results from
discontinued operations included the results of Ameriprise and certain other dispositions (primarily TBS) through September 30, 2005.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Impact of Credit and Capital Market
Environment</STRONG><BR></FONT><I><FONT face=serif size=2>Overview<BR></FONT></I><FONT face=serif size=2>In December, the Company began to feel the effects of the weakening U.S. economy as cardmember spending slowed and past-due and write-off rates
in U.S. Card Services increased.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>In the latter part of 2007, there was also significant volatility in the capital markets, particularly for the valuations of mortgage-backed and
other asset-backed structured products as well as in the issuance cost and availability of short-term, asset-backed debt for certain issuers.</FONT></P> <P align=justify><I><FONT face=serif size=2>U.S. Card Services cardmember lending and
receivables <BR></FONT></I><FONT face=serif size=2>While overall cardmember spending for U.S. Card Services continued to be relatively strong and the Company benefited from a focus on the affluent sector of the market, the Company saw negative
credit trends among U.S. consumers in the latter part of 2007, particularly in certain parts of California, Florida and other regions of the country most affected by the </FONT></P> <P align=right><FONT face=serif size=1>39</FONT></P> <HR
align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW <BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY </FONT></P> <P align=justify><FONT face=serif size=2>housing downturn as well
as with U.S. small businesses. As a result, the Company recorded a $438 million credit-related charge in the fourth quarter. The credit-related charge was comprised of additional provision for losses for U.S. Card Service&#146;s cardmember lending
and cardmember receivables of $288 million and $96 million, respectively, and a $54 million charge relating to a reduction in the fair market value of the Company&#146;s retained subordinated interest in securitized cardmember
loans.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In managing risk, the Company&#146;s objective is to protect its profitability, but also protect, to the extent it can, the Company&#146;s ongoing relationship with the
cardmember and their experience. With this in mind, the following actions have been taken by the Company across the U.S. Card Services portfolios:</FONT></P> <UL> <LI> <P align=justify><FONT face=serif size=2>The Company has implemented a reduction
of cardmember lines of credit for specific segments of the cardmember portfolio representing the greatest risk. These segments include cardmembers holding sub-prime mortgages and small businesses, in particular those operating in specific
industries, such as mortgage companies, home builders and construction related businesses.</FONT></P> <LI> <P align=justify><FONT face=serif size=2>The Company has adjusted its risk management models to reflect the higher probability of default that
exists during a weaker economy, and in geographies that have been most </FONT><FONT face=serif size=2>impacted by home price declines.</FONT></P> <LI> <P align=justify><FONT face=serif size=2>To improve recoveries, the Company has increased its
staffing levels in credit and collection.</FONT></P></LI></UL> <P align=justify><I><FONT face=serif size=2>Investment Portfolios<BR></FONT></I><FONT face=serif size=2>The Company&#146;s investment portfolios support specific businesses such as the
AEIDC certificate business within international banking services, Travelers Cheques business, and the contingent liquidity investment portfolio (as discussed below). The Company&#146;s objective is to manage the type and mix of assets as well as
their maturity profile to ensure that the cash and liquidity needs of the respective business or portfolio can be met without relying on the sale of investments prior to maturity. As a result, the Company generally holds its investments until their
maturity. However, management may sell securities prior to maturity due to changes in Company-specific business goals, liquidity needs, and the credit and capital market environment.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif
size=2>The Company reviews and evaluates its investments at least quarterly and more often as market conditions may require, to identify investments that have indications of other-than-temporary impairments. The determination of other-than-temporary
impairments is a subjective process, requiring the use of assumptions and application of judgment. In addition to its impairment evaluation, the Company corroborates the prices provided by its pricing vendors to test the accuracy of the fair
values.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company did not experience any defaults</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>or event of defaults, or determine it would not receive timely
contractual payments of interest and repayment of principal, on any of its holdings in its investment portfolios in 2007.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>At December 31, 2007, the Company owned approximately $2.5
billion of asset-backed securities, including mortgage-backed securities. 99 percent of these asset-backed securities were rated AAA at December 31, 2007. $1.6 billion of these asset-backed securities are classified as Trading securities and support
the AEIDC certificate business. Unrealized holding gains and losses on Trading securities are recorded in earnings.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>The remaining asset-backed securities are classified as
Available-for-Sale. Unrealized holding gains and losses on Available-for-Sale securities are included in accumulated other comprehensive (loss) income until disposition of the investments. $838 million of the asset-backed securities owned by the
Company that are classified as Available-for-Sale are included in Assets of Discontinued Operations on the Company&#146;s balance sheet.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>Total gross unrealized losses remaining in
accumulated other comprehensive (loss) income at December 31, 2007, related to the asset-backed securities classified as Available-for-Sale amounted to $11 million ($10 million related to discontinued
operations).&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company owns state and municipal securities that primarily support the Travelers Cheques business and are classified as Available-for-Sale. Approximately 73
percent of state and municipal investments owned by the Company are insured by financial guarantors that guarantee timely payment of interest and ultimate payment of principal on insured obligations. Certain financial guarantors have recently
experienced credit downgrades and difficulty obtaining cost effective capital due to the insurers&#146; exposure to mortgage-related securities guarantees. As of December 31, 2007, approximately 98 percent of the Company&#146;s state and municipal
investments insured by financial guarantors were rated AAA, the remaining were rated AA. The ratings of these securities will depend in part on the ratings of the financial guarantors as well as in part on the underlying issuers&#146; ratings
without respect to the guaranty, among other factors. The Company has not, to date, incurred any significant losses in the value of its holdings as a result of the financial guarantors&#146; credit problems.</FONT><B><FONT face=serif size=2>
</FONT></B><FONT face=serif size=2>Continued deterioration in the ratings and investor confidence in the claims-paying abilities of the financial guarantors, or their inability to pay guaranty claims, could result in declines in the values of these
securities. During 2007, the Company sold certain investments insured by financial guarantors that it considered to be most at risk to lose their investment grade credit rating.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
current credit market environment had a small positive impact on the values of U.S. Treasury and government sponsored entities (Fannie Mae and Freddie Mac) securities included in the Company&#146;s contingent liquidity portfolio (as discussed
below).</FONT></P> <P align=justify><FONT face=serif size=1>40</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif
size=2>Valuations of securities held within the Company&#146;s investment portfolio will continue to be subject to changes in external market factors including default rates, rating agency actions, and the prices at which observable market
transactions occur. The Company&#146;s future results may be impacted by the valuation adjustments applied to these holdings.</FONT></P> <P align=justify><I><FONT face=serif size=2>Other Assets<BR></FONT></I><FONT face=serif size=2>As discussed in
Note 6 of the Consolidated Financial Statements, other assets include an interest only-strip, which represents a retained interest in securitized cardmember loans. The Company records any change in the fair value of the interest-only strip in
securitization income, net. As previously discussed in the Critical Accounting Policies section, the value of the interest-only strip may be impacted by changes in certain key assumptions including expected credit losses and the discount rate.
</FONT></P> <P align=justify><I><FONT face=serif size=2>Liquidity<BR></FONT></I><FONT face=serif size=2>As discussed in more detail below, the Company&#146;s reliance on diverse sources of funding, with wide ranges of maturities, and its contingent
liquidity strategy allow for the continued funding of business operations through difficult economic, financial market and business conditions when access to regular funding sources could become diminished or
interrupted.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>While the credit market environment that began to emerge in the second half of 2007 included disruptions in the capital markets, the Company had access to sufficient
financing through its existing funding sources to meet its business needs in 2007. Disruptions in the financial markets, however, resulted in a change of the Company&#146;s debt funding mix in the second half of 2007, particularly considering
maturity and floating rate versus fixed rate profiles. (See the Market Risk Management section for further discussion regarding the mix of floating and fixed rate funding.)<BR><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Continued disruptions
in 2008 in the financial markets could result in further changes in the funding mix. Specifically, a lack of investor demand in sectors of the debt capital market, such as for 1-to-5 year unsecured floating rate debt or the A-rated and BBB-rated
tranches of the card securitization market, could alter the Company&#146;s funding mix. In such cases, the Company</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>would increase its issuance of longer-term unsecured debt or
issue the AAA-rated tranches of its securitizations, where investor demand has been stronger. Through February in 2008, the Company issued approximately $3.7 billion of AAA-rated securitization certificates. It retained approximately $235 million of
related A-rated securities and approximately $275 million of BBB-rated securities, as the Company had more cost-effective alternative sources of financing for these amounts.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>The
Company will continue to evaluate its alternative sources of funding and&nbsp;seek the mix that achieves cost-efficiency consistent with its funding and liquidity strategies.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif
size=2>Credit ratings have a significant impact on the borrowing costs of the Company. There have been no changes in the Company&#146;s credit ratings during 2007.</FONT></P> <P align=justify><FONT face=serif
size=2><STRONG>Outlook</STRONG><BR></FONT><FONT face=serif size=2>In early January 2008, as the Company saw clear signs that the U.S. economy was weakening, the Company announced its expectations for slower growth in cardmember spending and weaker
credit trends in the year ahead, and that these factors would lead to slower growth in earnings per share in 2008 than the Company has generated in recent years. The Company&#146;s planning assumptions were based on a moderate downturn in the U.S.
economy and a more cautious view of the business environment in the coming year. However, the situation is fluid and any significant change in the economic and credit environment could alter the Company&#146;s 2008 outlook. </FONT></P> <P
align=justify><B><FONT face=serif size=1>CONSOLIDATED CAPITAL RESOURCES AND LIQUIDITY </FONT></B></P> <P align=justify><B><FONT face=serif size=1>CAPITAL STRATEGY <BR></FONT></B><FONT face=serif size=2>The Company generates equity capital primarily
through net income to fund current needs and future business growth and to maintain a targeted debt rating. The maintenance of a solid equity capital base provides the Company with a strong</FONT><FONT face=serif size=1> </FONT><FONT face=serif
size=2>and stable debt rating, which facilitates uninterrupted access to diversified sources of financing to fund asset growth. The Company also has a contingency funding plan to help ensure adequate sources of financing in difficult economic or
market environments and, in certain circumstances, adverse events affecting the Company.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company believes allocating capital to growing businesses with a return on risk-adjusted
equity in excess of its cost of capital will generate shareholder value. The Company retains sufficient earnings and other capital generated to satisfy growth objectives and maintain a solid equity capital base.</FONT><B><FONT face=serif size=2>
</FONT></B><FONT face=serif size=2>To the extent capital exceeds business, regulatory, and rating agency requirements, the Company returns excess capital to shareholders through dividends and the share repurchase
programs.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Assuming the Company achieves its financial objectives of 12 to 15 percent EPS growth, 33 to 36 percent ROE and at least 8 percent revenue growth, on average and over
time, it will seek to return to shareholders an average of 65 percent of capital generated, subject to business mix, acquisitions and rating agency requirements.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Important factors
relating to ROE include the Company&#146;s margins, the amount and type of receivables and other assets needed to generate revenue, the level of capital required to support its assets, and the mix between shareholders&#146; equity and other forms of
financial capital that it holds as a result of its financing activities.</FONT></P> <P align=right><FONT face=serif size=1>41</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW <BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY </FONT></P> <P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif
size=2>During 2007, the Company met its ROE target. In keeping with the Company&#146;s objectives, regarding the return of excess capital to shareholders, the Board of Directors of the Company approved a 20 percent increase in the quarterly dividend
on the Company&#146;s common stock from $0.15 to $0.18 per share, paid February 8, 2008, to shareholders of record on January 4, 2008. During 2007, through dividends and share repurchases, the Company returned approximately 88 percent of total
capital generated to shareholders in the form of $740 million in dividends and $3.6 billion of share repurchases. The Company was able to return a high percentage of its earnings and capital generated to shareholders during 2007 due in part to its
balance sheet management activities that seek to optimize the level of shareholders&#146; equity required to support its growth.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company maintains flexibility to shift capital
across its businesses as appropriate. For example, the Company may infuse additional capital into subsidiaries to maintain capital at targeted levels, considering debt ratings and regulatory requirements. These infused amounts can affect both the
capital and liquidity levels for American Express&#146; parent company (Parent Company). The Company maintains discretion to manage these effects, by issuing debt and reducing projected common share buybacks. Additionally, the Company may transfer
short-term funds within the Company to meet liquidity </FONT><FONT face=serif size=2>needs,</FONT><FONT face=serif size=1> </FONT><FONT face=serif size=2>subject to and in compliance with various contractual and regulatory constraints. </FONT></P>
<P align=justify><B><FONT face=serif size=1>SHARE REPURCHASES <BR></FONT></B><FONT face=serif size=2>The Company has a share repurchase program to return equity capital in excess of business needs to shareholders. These share repurchases both offset
the issuance of new shares as part of employee compensation plans and reduce shares outstanding.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>The Company repurchases its common shares primarily by open market
purchases.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Approximately 71 percent of capital generated has been returned to shareholders since inception of the share repurchase program in 1994. During 2007, the Company
purchased 60 million common shares at an average price of $59.42. At December 31, 2007, there were approximately 105 million shares remaining under authorizations to repurchase shares approved by the Company&#146;s Board of Directors.</FONT></P> <P
align=justify><B><FONT face=serif size=1>CASH FLOWS </FONT></B></P> <P align=justify><FONT face=serif size=2><STRONG>Cash Flows from Operating Activities</STRONG> <BR></FONT><FONT face=serif size=2>In 2007 and 2006, net cash provided by operating
activities exceeded net income, primarily due to provisions for losses and benefits, which do not require cash at the time of provision. Similarly, depreciation and amortization represent non-cash expenses. In addition, net cash was provided by
fluctuations in other operating assets and liabilities (including the Membership </FONT><FONT face=serif size=2>Rewards liability). These accounts vary significantly in the normal course of business due to the amount and timing of various
payments.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>For the year ended December 31, 2007, net cash provided by operating activities of $8.5 billion decreased compared to 2006. The decrease was primarily due to an outflow
of cash resulting from fluctuations in the Company&#146;s operating assets and liabilities offset by higher net income.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Net cash provided by operating activities was higher in 2006 than
2005 due to fluctuations in other operating assets and liabilities.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Management believes cash flows from operations, available cash balances and short-term borrowings will be
sufficient to fund the Company&#146;s operating liquidity needs. </FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Cash Flows from Investing Activities</STRONG> <BR></FONT><FONT face=serif size=2>The Company&#146;s investing activities
primarily include funding cardmember loans and receivables, securitizations of cardmember loans and receivables, and the Company&#146;s Available-for-Sale investment portfolio.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif
size=2>For the year ended December 31, 2007, net cash used in investing activities of $17.1 billion increased compared to 2006, primarily due to net increases in cardmember receivables and loans and cash used in investing activities attributable to
discontinued operations offset by an increase in proceeds from loan and receivable securitizations.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In 2006, net cash used in investing activities decreased from 2005 primarily as a
result of cash retained by Ameriprise after the spin-off.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Cash Flows from Financing Activities</STRONG> <BR></FONT><FONT face=serif size=2>The Company&#146;s financing activities primarily
include issuing debt and taking customer deposits in addition to the sale and redemption of investment certificates. The Company also regularly repurchases its common shares.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In
2007, net cash provided by financing activities of $15.5 billion increased compared to 2006, primarily due to a net increase in debt and the net change in customers&#146; deposits, partially offset by a decrease in the issuance of shares and an
increase in dividends paid.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In 2006, financing activities provided net cash greater than in 2005 primarily due to a net increase in debt partially offset by an increase in share
repurchases.</FONT></P> <P align=justify><B><FONT face=serif size=1>FINANCING ACTIVITIES <BR></FONT></B><FONT face=serif size=2>The Company is committed to maintaining cost-effective, well-diversified funding programs to support current and future
asset growth in its global businesses. The Company&#146;s funding plan is structured to meet expected and changing business needs to fund asset balances efficiently and cost-effectively. The Company relies on diverse funding sources, to help
</FONT></P> <P align=justify><FONT face=serif size=1>42</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><FONT face=serif size=2>ensure the availability of
financing in unexpected periods of stress and to manage interest rate exposures. In addition to the funding plan described below, the Company has a contingent funding strategy to allow for the continued funding of business operations through
difficult economic, financial market and business conditions when access to regular funding sources could become diminished or interrupted. In 2007 and 2006, the Company had uninterrupted access to the money and capital
markets.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company&#146;s proprietary card businesses are the primary asset-generating businesses, with significant assets in both domestic and international cardmember receivable and
lending activities. Accordingly, the Company&#146;s most significant borrowing and liquidity needs are associated with its proprietary card businesses. The Company generally pays merchants for card transactions prior to reimbursement by cardmembers.
The Company funds merchant payments during the period cardmember loans and receivables are outstanding. The Company also has additional borrowing needs associated with general corporate purposes.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT
face=serif size=2>The following discussion includes information on both a GAAP and managed basis. The managed basis presentation includes debt issued in connection with the Company&#146;s lending securitization activities, which are off-balance
sheet. For a discussion of managed basis and management&#146;s rationale for such presentation, refer to the U.S. Card Services discussion below. </FONT></P> <P align=justify><B><FONT face=serif size=1>FUNDING PROGRAMS<BR></FONT></B><FONT face=serif
size=2>The Company&#146;s funding activities and liquidity planning are integrated into its asset-liability management activities. The Company&#146;s assets and growth have been financed principally through the following sources: Long-term sources:
</FONT></P> <UL> <LI><FONT face=serif size=2>Senior unsecured debentures,<BR>&nbsp;</FONT> <LI><FONT face=serif size=2>Asset securitizations,<BR>&nbsp;</FONT> <LI><FONT face=serif size=2>Long-term committed bank borrowing facilities in
selected</FONT> <FONT face=serif size=2>non-U.S. markets, and</FONT></LI></UL> <P align=justify><FONT face=serif size=2>Short-term sources:</FONT></P> <UL> <LI><FONT face=serif size=2>Commercial paper, and<BR>&nbsp;</FONT> <LI><FONT face=serif
size=2>Bank notes, customers&#146; deposits, institutional certificates of</FONT> <FONT face=serif size=2>deposit, and Fed Funds.</FONT></LI></UL> <P align=justify><FONT face=serif size=2>The Company&#146;s current funding strategy is to maintain
short-term debt outstanding to meet seasonal and other working capital needs, as well as to replace maturing long-term debt and finance business growth primarily through long-term unsecured debt&nbsp;and asset securitization issuances. During 2008,
the Company has $11.8 billion of unsecured long-term debt and $4.7 billion of asset securitizations that will mature. The Company has, to date and over time, financed approximately one-third of its U.S. consumer and small business lending
receivables through asset securitizations and a smaller proportion of its U.S. consumer, small business, and corporate charge card receivables through asset securitizations. The Company&#146;s 2008 long-term issuance plan provides for the
refinancing of maturities and funding business growth through a broad and globally diversified mix of maturities, markets, securities, and currencies, including issuance from both lending and charge receivables trusts. (Refer to the discussion above
for a discussion of how the credit market environment could affect the mix of debt issuances.)&nbsp;<BR><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The Company&#146;s short-term funding programs are used primarily to meet working capital
needs, such as managing seasonal variations in receivables balances, and have not, on average, grown in size with its business growth. The ultimate amount and mix issued will depend on the Company&#146;s needs and market
conditions.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>General corporate purpose funding is primarily through the</FONT><FONT face=serif size=1> </FONT><FONT face=serif size=2>Parent Company and American Express Travel Related
Services Company, Inc. (TRS). The Company funds its cardmember receivables and loans primarily through five entities. American Express Credit Corporation (Credco) finances the vast majority of worldwide cardmember receivables, while American Express
Centurion Bank (Centurion Bank) and American Express Bank, FSB (FSB) principally fund cardmember loans originated from the Company&#146;s U.S. lending activities. Two trusts are used by the Company in connection with the securitization and sale of
U.S. receivables and loans generated in the ordinary course of the Company&#146;s proprietary card businesses.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Asset/Liability Committees of Centurion Bank and FSB provide
management oversight with respect to formulating and ratifying funding strategy and to ensure that all funding policies and requirements of the two banks are met.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company&#146;s
debt offerings are placed either directly to investors, as in the case of its commercial paper program through Credco, or through securities brokers or underwriters. In certain international markets, bank borrowings are used to partially fund
cardmember receivables and loans. </FONT></P> <P align=right><FONT face=serif size=1>43</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW <BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif
size=2>Diversity of funding sources by type of debt instrument, by maturity and by investor base provides additional insulation from unforeseen events in the debt market. The Company had the following consolidated debt, on both a GAAP and managed
basis, and customer deposits outstanding at December 31:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><FONT face=serif size=2><FONT face=serif size=1><EM>(Billions)&nbsp;</EM><FONT size=3>&nbsp;</FONT></FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><STRONG>2007</STRONG></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2><FONT size=3>&nbsp;</FONT>2006</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=serif size=2>Short-term debt</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>17.8</FONT></B></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;<FONT size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>15.2</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><FONT face=serif size=2>Long-term debt</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>55.3</FONT></B></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>42.7</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=serif size=2>Total debt (GAAP basis)</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>73.1</FONT></B></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>57.9</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><FONT face=serif size=2>Off-balance sheet securitizations</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>22.7</FONT></B></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>20.2</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=serif size=2>Total debt (managed basis)</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>95.8</FONT></B></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>78.1</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><FONT face=serif size=2>Customers&#146; deposits</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>15.4</FONT></B></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>12.0</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="90%" bgColor=#c0c0c0><FONT size=2>Total debt (managed) and <FONT face=serif>customers&#146; deposits</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><STRONG><FONT size=2>111.2</FONT></STRONG></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;<FONT size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>90.1</FONT></TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>Short-term debt is defined as any debt with an original
maturity of 12 months or less. Credco&#146;s commercial paper is a widely recognized name among short-term investors and is a principal source of short-term debt for the Company. Centurion Bank and FSB raise short-term debt through various
instruments.</FONT><B><FONT face=serif size=2></FONT></B> <FONT face=serif size=2>The Company had the following short-term debt outstanding at December 31:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><FONT face=serif size=1><I>(Billions)</I>&nbsp;<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><STRONG>2007</STRONG></FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2><FONT size=3>&nbsp;</FONT>2006</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Credco:<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%">&nbsp; &nbsp; &nbsp;<FONT face=serif size=2>Commercial Paper</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT size=3>&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>10.5</FONT></B></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT size=3>&nbsp;</FONT>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>5.8</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%" bgColor=#c0c0c0>&nbsp; &nbsp; &nbsp;<FONT face=serif size=2>Other</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>0.6</FONT></B></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.1</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%"><FONT face=serif size=2>Centurion Bank and FSB:<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%" bgColor=#c0c0c0>&nbsp; &nbsp; &nbsp;<FONT face=serif size=2>Bank Notes</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>2.9</FONT></B></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>6.0</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%">&nbsp; &nbsp; &nbsp;<FONT face=serif size=2>Fed Funds</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>2.4</FONT></B></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>1.8</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Other<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1.4</FONT></B></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1.5</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%">&nbsp; &nbsp; &nbsp;<FONT face=serif size=2>Total</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><FONT size=3>&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>17.8</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;<FONT size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>15.2</FONT></TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>Average commercial paper outstanding was $7.8 billion in 2007 and 2006.
Credco currently manages the level of short-term debt outstanding such that its back-up liquidity, including available bank credit facilities and term liquidity portfolio investment securities, is not less than 100 percent of net short-term debt.
Net short-term debt, which consists of commercial paper and certain other short-term borrowings less cash and cash equivalents, was $7.9 billion at December 31, 2007. Based on the maximum available borrowings under bank credit facilities and term
liquidity portfolio investment securities, Credco&#146;s total back-up liquidity coverage of net short-term debt was 140 percent and 212 percent at December 31, 2007 and 2006, respectively.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT
face=serif size=2>The Company had short-term debt as a percentage of total debt at December 31 as follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="92%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><STRONG>2007</STRONG></FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2><FONT face=serif size=2><FONT size=3>&nbsp;</FONT>2006</FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="92%" bgColor=#c0c0c0><FONT face=serif size=2>Short-term debt percentage of total debt (GAAP basis)</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>24.3</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><STRONG><FONT size=2>%</FONT></STRONG></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>26.3</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT></TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>Centurion Bank and FSB also raise customer deposits through the issuance
of certificates of deposit to retail and institutional customers. As of December 31, 2007, Centurion Bank and FSB held $14.7 billion in customer deposits.&nbsp;<BR><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT><FONT face=serif size=2>In
2007, debt with maturities primarily ranging from 2 to 10 years was issued in the U.S. and international markets. The Company&#146;s 2007 offerings, which include those made by the Parent Company, Credco, Centurion Bank, FSB, American Express
Receivables Financing Corporation LLC V (the Charge Trust) and the American Express Credit Account Master Trust (the Lending Trust) are presented in the following table on both a GAAP and managed basis:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="95%"><I><FONT face=serif size=2><FONT face=serif size=1>(Billions)</FONT></FONT></I>&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2>&nbsp;<FONT face=serif size=2><FONT face=serif size=1>Amount<FONT size=3></FONT></FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif size=2>American Express Company</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="95%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(Parent Company only)<SUP><FONT size=1>(a)</FONT></SUP></FONT><FONT face=serif size=2>:</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="95%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Fixed Rate Senior Notes</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;<STRONG><FONT size=2>$</FONT></STRONG></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>&nbsp;1.5</FONT></B></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif size=2>American Express Credit Corporation:</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="95%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Fixed and Floating Rate Senior Notes</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>3.1</FONT></B></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="95%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Borrowings under Bank Credit Facilities</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>0.4</FONT></B></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="95%"><FONT face=serif size=2>American Express Centurion Bank:</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="95%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Fixed and Floating Rate Senior Notes</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>7.2</FONT></B></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="95%"><FONT face=serif size=2>American Express Bank, FSB:</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="95%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Fixed and Floating Rate Senior Notes</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>6.7</FONT></B></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="95%"><FONT size=2>American Express Receivables Financing <FONT face=serif>Corporation LLC V:</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="95%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Floating Rate Senior Notes and</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Subordinated
Notes</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>2.0</FONT></B></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="95%"><FONT face=serif size=2>GAAP Basis</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>20.9</FONT></B></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT size=2>American Express Credit Account <FONT face=serif>Master Trust:</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="95%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Trust Investor Certificates
</FONT></FONT>(off-balance sheet)</FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>6.0</FONT></B></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif size=2>Managed Basis</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT size=3>&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><STRONG>26.9</STRONG></FONT></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD width="100%"><FONT face=serif size=1>The table above excludes the remarketing of the Convertible Senior Debentures as Senior Notes described below.</FONT></TD></TR></TABLE> <P align=justify><FONT face=serif size=2>The Company continues to issue
debt with a wide range of maturities to reduce and spread out the refinancing requirement in future periods. The Company expects that its planned funding during 2008 will be met through a combination of similar sources to those on which it currently
relies. However, the Company continues to assess its needs and investor demand and may change the mix of its existing sources as well as seek to add new sources to its funding mix. The Company&#146;s funding plan is subject to various risks and
uncertainties, such as disruption of financial markets, market capacity and demand for securities offered by the Company, regulatory changes, ability to sell receivables and the performance of receivables previously sold in securitization
transactions. Many of these risks and uncertainties are beyond the Company&#146;s control.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>At December 31, 2007, the Parent Company had an unspecified amount of debt or equity
securities and Credco had</FONT></P> <P align=justify><FONT face=serif size=2><FONT face=serif size=1>44</FONT></FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><FONT face=serif size=2>an unspecified amount of
debt available for issuance under shelf registrations filed with the SEC. In addition, TRS, Centurion Bank, FSB, Credco, and American Express Overseas Credit Corporation Limited, a wholly-owned subsidiary of Credco, have established a program for
the issuance outside the United States of debt instruments to be listed on the Luxembourg Stock Exchange. The maximum aggregate principal amount of debt instruments outstanding at any one time under the program cannot exceed $10
billion.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company&#146;s equity capital and funding strategies are designed to maintain high and stable debt ratings from the major credit rating agencies, Moody&#146;s, Standard
&amp; Poor&#146;s and Fitch Ratings. Maintenance of high and stable debt ratings is critical to ensuring the Company has continuous access to the capital and credit markets. It also enables the Company to reduce its overall borrowing costs. At
December 31, 2007, the Parent Company debt ratings were as follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="87%">&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="3%">&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=1><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Standard</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=1><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Fitch</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=1><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Moody&#146;s</FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=1><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&amp; Poor&#146;s</FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=1><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Ratings</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Short-term</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3></FONT>P-1</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>A-1</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>F1</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="87%"><FONT face=serif size=2>Senior unsecured</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>A1</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>A+</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>A+</FONT></TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>The Company actively manages the risk of liquidity and cost of funds
resulting from the Company&#146;s financing activities.</FONT><B><FONT face=serif size=2></FONT></B> <FONT face=serif size=2>A downgrade of the Company&#146;s debt ratings would increase its borrowing costs. Management believes a decline in the
Company&#146;s long-term credit rating by two levels would result in the Company having to significantly reduce its commercial paper and other short-term borrowings. Remaining borrowing requirements would be addressed through other means such as the
issuance of long-term debt, additional securitizations, increased deposit taking, and the sale of investment securities or drawing on existing credit lines. This would result also in higher interest expense on the Company&#146;s commercial paper and
other debt, as well as higher fees related to unused lines of credit. The Company believes a two-level downgrade is highly unlikely due to its capital position and the strength of its franchise.</FONT></P> <P align=justify><FONT face=serif
size=2><STRONG>Asset Securitizations</STRONG><BR></FONT><FONT face=serif size=2>The Company periodically securitizes cardmember receivables and loans arising from its card business. The securitization market provides the Company with cost-effective
funding. Securitization of cardmember receivables and loans is accomplished through the transfer of those assets to a trust, which in turn issues certificates or notes (securities) to third-party investors collateralized by the transferred assets.
The proceeds from issuance are distributed to the Company, through its wholly-owned subsidiaries, as consideration for the transferred assets. Securitization transactions are accounted for as either a sale or secured borrowing, based upon the
structure of the transaction.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Securitization of cardmember receivables generated under designated consumer charge card and small business charge card accounts is accomplished
through the transfer of cardmember receivables to the American Express Issuance Trust (Charge Trust). Securitizations of these receivables are accounted for as secured borrowings because the Charge Trust is not a qualifying special purpose entity
(QSPE). Accordingly, the related assets being securitized are not accounted for as sold and continue to be reported as owned assets on the Company&#146;s Consolidated Balance Sheets. The related securities issued to third-party investors are
reported as long-term debt on the Company&#146;s Consolidated Balance Sheets. At December 31, the Charge Trust held total assets of:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%"><FONT face=serif size=2><FONT face=serif size=1><EM>(Billions)&nbsp;</EM><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=serif size=2><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><STRONG>2007</STRONG></FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=serif size=2><FONT face=serif size=2><FONT size=3>&nbsp;</FONT>2006</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT face=serif size=2>Total assets</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>9.0</FONT></B></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT size=3>&nbsp;&nbsp;</FONT>$</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>9.6</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="94%"><FONT face=serif size=2>Long-term debt</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>3.1</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><FONT size=3>&nbsp;&nbsp;</FONT>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=serif size=2>1.2</FONT></TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>Securitization of the Company&#146;s cardmember loans generated under
designated consumer lending accounts is accomplished through the transfer of cardmember loans to a QSPE, the Lending Trust. In a securitization structure like the Lending Trust (a revolving master trust), credit card accounts are selected and the
rights to the current cardmember loans, as well as future cash flows related to the corresponding accounts, are transferred to the trust for the life of the accounts. In consideration for </FONT><FONT face=serif size=2>the transfer of these rights,
the Company, through its wholly-owned subsidiaries, receives an undivided, pro rata interest in the trust referred to as the &#147;seller&#146;s interest,&#148; which is reflected on balance sheet as a component of cardmember loans. The
seller&#146;s interest is required to be maintained at a minimum level of 7 percent of the outstanding securities in the Lending Trust. As of December 31, 2007, the amount of seller&#146;s interest was approximately 56 percent of outstanding
securities, above the minimum requirement. When the Lending Trust issues a security to a third party, a new investor interest is created. The Company removes the corresponding cardmember loans from its Consolidated Balance Sheets, recognizes a gain
on sale and release of credit reserves, and records an interest-only strip. From time to time, the Company may record other retained interests as well. The total investors&#146; interest outstanding will change through new issuances or maturities.
The seller&#146;s interest will change as a result of new trust issuances or maturities as well as new account additions, new charges on securitized accounts, and collections. As seller&#146;s interest changes each period, the related allowance for
loss will change as well. When a security matures, the trust uses a portion of the collections to repay the security, and as a result the investors&#146; interest decreases. In the monthly period that contains a maturity, new charges on securitized
accounts have historically been greater than the portion of the collections required to repay the maturing security, and therefore, seller&#146;s interest has increased in an amount greater than or equal to the decrease in investors&#146; interest.
</FONT></P> <P align=right><FONT face=serif size=1>45</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW <BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif
size=2>The Company&#146;s continued involvement with the securitized cardmember loans includes the process of managing and servicing the securitized loans through its subsidiary, TRS, for which it earns a fee. Any billed finance charges related to
the transferred cardmember loans are reported as other receivables on the Company&#146;s Consolidated Balance Sheets.</FONT><B><FONT face=serif size=2></FONT></B> <FONT face=serif size=2>At December 31, the Lending Trust held total assets
of:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%"><FONT face=serif size=2><FONT size=1><EM>(Billions)</EM></FONT><FONT size=3>&nbsp;</FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=serif size=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><STRONG>2007</STRONG></FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=serif size=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>2006</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT face=serif size=2>Investors&#146; interest</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;<STRONG><FONT size=2>$</FONT></STRONG></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>22.7</FONT></B></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;<FONT size=2>$</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>20.2</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%"><FONT face=serif size=2>Seller&#146;s interest</FONT></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>13.5</FONT></B></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>14.4</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="94%" bgColor=#c0c0c0><FONT face=serif size=2>Lending Trust total assets</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;<STRONG><FONT size=2>$</FONT></STRONG></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>36.2</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;<FONT size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>34.6</FONT></TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>At December 31, the fair value of the interest-only strip
and other retained interests were as follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%"><FONT face=serif size=2><FONT face=serif size=1><EM>(Millions)&nbsp;</EM><FONT size=3>&nbsp;</FONT></FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=serif size=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><STRONG>2007</STRONG></FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=serif size=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>2006</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT face=serif size=2>Interest-only strip</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT size=3>&nbsp;&nbsp;</FONT></FONT><FONT size=2><STRONG>$</STRONG></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>223</FONT></B></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT size=3>&nbsp;&nbsp;</FONT>$</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>266</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%"><FONT face=serif size=2>Subordinated securities</FONT></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>78</FONT></B></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>&#151;</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="94%" bgColor=#c0c0c0><FONT face=serif size=2>Total</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT size=3>&nbsp;&nbsp;</FONT></FONT><FONT size=2><STRONG>$</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>301</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT size=3>&nbsp;&nbsp;</FONT>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>266</FONT></TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>See the Consolidated Liquidity and Capital Resources
section and Note 6 to the Consolidated Financial Statements for details regarding the Company&#146;s securitization trusts.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Under the respective terms of the Lending Trust and the
Charge Trust agreements, the occurrence of certain events could&nbsp;</FONT><FONT face=serif size=2></FONT> <FONT face=serif size=2>result in either trust being required to pay down the investor certificates and notes before their expected payment
dates over an early amortization period. An example of such an event is, for either trust, the failure of the securitized assets to generate specified yields over a defined period of time.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT
face=serif size=2>No such events have occurred during 2007 and 2006, and the Company does not expect an early amortization trigger event to occur prospectively. In the event of a paydown of the Lending Trust, $22.7 billion of assets would revert to
the balance sheet and an alternate source of funding of a commensurate amount would have to be obtained. Had a total paydown of the Lending Trust hypothetically occurred at a single point in time at December 31, 2007, the cumulative negative effect
on results of operations would have been approximately $973 million pretax to re-establish reserves and to derecognize the retained interests related to these securitizations that would have resulted when the securitized loans reverted back onto the
balance sheet.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Virtually no financial statement impact would occur from a paydown of the Charge Trust, but an alternate source of funding for the $3.1 billion of securities
outstanding at December 31, 2007 would have to be obtained.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>With respect to both the Lending Trust and the Charge Trust, a decline in the actual or implied short-term credit
rating of TRS below A-1/P-1 will trigger a requirement that TRS, as servicer, transfer collections on the securitized assets to investors on a daily, rather than a monthly, basis or make</FONT> <FONT face=serif size=2>alternative arrangements with
the rating agencies to allow TRS to continue to transfer collections on a monthly basis.</FONT><B><FONT face=serif size=2></FONT></B> <FONT face=serif size=2>Such alternative arrangements include obtaining appropriate guarantees for the performance
of the payment and deposit obligations of TRS, as servicer. No such events have occurred during 2007 and 2006.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>No officer, director, or employee holds any equity interest in the
trusts or receives any direct or indirect compensation from the trusts. The trusts in the Company&#146;s securitization programs do not own stock of the Company or the stock of any affiliate. Investors in the securities issued by the trusts have no
recourse against the Company if cash flows generated from the securitized assets are inadequate to service the obligations of the trusts.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Parent Company Funding</STRONG><BR></FONT><FONT
face=serif size=2>Parent Company long-term debt outstanding was $6.7 billion and $6.0 billion at December 31, 2007 and 2006, respectively.</FONT><B><FONT face=serif size=2></FONT></B> <FONT face=serif size=2>During 2007, the Parent Company issued
$1.5 billion of 6.15 percent fixed-rate Senior Notes due 2017.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Parent Company is authorized to issue commercial paper. This program is supported by a $1.2 billion multi-purpose
committed bank credit facility. The credit facility will expire in 2010 and 2012 in the amounts of $500 million and $750 million, respectively. There was no Parent Company commercial paper outstanding during 2007 and 2006, and no borrowings have
been made under its bank credit facility.</FONT></P> <P align=justify><B><FONT face=serif size=2>CONTINGENT LIQUIDITY STRATEGY<BR></FONT></B><FONT face=serif size=2>The Company seeks to ensure that it has adequate liquidity, that is cash and
equivalents on hand, as well as access to cash and equivalents to continuously meet its business needs and satisfy its obligations. Liquidity is managed through the breadth of sources of its funding programs, as well as through the quality and
liquidity of its funded assets.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company balances the trade-offs between having too much liquidity, which can be costly and limit financial flexibility, with having inadequate
liquidity, which may result in financial distress during a liquidity event. The Company considers various factors in determining the amount of liquidity it holds, such as economic and financial market conditions, seasonality in business operations,
growth in its businesses, cost and availability of alternative liquidity sources, and regulatory and credit rating agency considerations.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company has developed a contingent
liquidity plan that enables it to continuously meet its daily obligations when access to unsecured funds in the debt capital markets becomes impaired or they become inaccessible. This plan is designed to ensure that the Company and all of its main
operating entities could continuously maintain normal business operations for a 12-month period in which its access to unsecured debt financing is interrupted. The hypothetical 12-month liquidity</FONT></P> <P align=justify><FONT face=serif
size=1>46</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><FONT face=serif size=2>crisis is assumed to occur
as a sudden and unexpected event that temporarily impairs access to or makes unavailable financing in the unsecured debt markets. In addition, the Company maintains substantial flexibility to reduce its operating cash uses, such as through its share
repurchase program, and the delay or deferral of certain operating expenses.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The contingent liquidity plan includes access to diverse sources of alternative funding. Such sources
include, but are not limited to, the Company&#146;s liquidity investment portfolio, sale of consumer, commercial card, and small business loans and cardmember receivables through its existing securitization programs, committed bank credit
facilities, intercompany borrowings, and sale of other eligible receivables. The Company estimates that, under a worst case liquidity crisis scenario, it has identified over $40 billion in alternate funding sources in a liquidity crisis.</FONT></P>
<P align=justify><FONT face=serif size=2><STRONG>Liquidity Investment Portfolio</STRONG><BR></FONT><FONT face=serif size=2>During the normal course of business, funding activities may raise more proceeds than are necessary for immediate funding
needs. These amounts are invested principally in high credit quality, highly liquid short-term instruments. In addition, the Company&#146;s contingent liquidity plan includes access to a continuing liquidity portfolio in which proceeds raised from
funding activities are invested in longer term, highly liquid instruments, such as U.S. Treasury securities and government sponsored entity debt. The invested amounts of the liquidity portfolio provide back-up liquidity, primarily for the commercial
paper program at Credco, and also flexibility for other short-term funding programs at Centurion Bank and FSB. Instruments held within this portfolio will be of the highest credit quality and most liquid of investment instruments available. The
Company can sell these securities or enter into sale/repurchase agreements to immediately raise cash proceeds to meet liquidity needs. At December 31, 2007, the Company held $5.1 billion of such securities under this
program.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Credco entered into securities lending agreements in June 2006 with other financial institutions to enhance investment income. At December 31, 2007, the liquidity investment
portfolio included approximately $970 million of investment securities loaned under these agreements. </FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Contingent Securitization Capacity</STRONG><BR></FONT><FONT face=serif size=2>A key
source in the Company&#146;s contingent liquidity plan is asset securitization. Approximately $25 billion of additional consumer loans, commercial card loans, small business loans and cardmember receivables could be sold over time to investors
through the existing securitization trust in the event a liquidity crisis has occurred. The Company has added, through the establishment of the Charge Trust, the capabilities to sell a wider variety of cardmember receivable portfolios to further
enhance the Company&#146;s flexibility in accessing diverse funding sources on a contingency basis.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company believes that the securitized financing would be available through many
adverse conditions due to the structure and size of the card securitization market. Its liquidity plans expect that pricing, investor demand, and structural subordination levels for card securitizations would change under adverse conditions.
Proceeds from secured financings completed during a liquidity crisis could be used to meet current obligations, to reduce or retire other contingent liquidity sources such as bank credit lines, or a combination of the two. However, other factors
affect the Company&#146;s ability to securitize loans and receivables, such as credit quality of the assets and the legal, accounting, regulatory, and tax environment for securitization transactions. Material changes in any of these factors may
potentially limit the Company&#146;s ability to securitize its loans and receivables and could introduce certain risks to the Company&#146;s ability to meet its financial obligations. In such a case, the use of investment securities, asset
dispositions, asset monetization strategies, and flexibility to reduce operating cash needs could be utilized to meet its liquidity needs. </FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Committed Bank Credit Facilities</STRONG><BR>
</FONT><FONT face=serif size=2>The Company maintained committed bank credit facilities at December 31, 2007 as follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="84%">&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=serif size=1>Parent</FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=serif size=1>Centurion</FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><I><FONT face=serif size=1>(Billions)</FONT></I>&nbsp; </TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=serif size=1>Total</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=serif size=1>Company</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=3><FONT face=serif size=1>Credco</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=serif size=1>Bank</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=serif size=1>FSB</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Committed</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP></FONT>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>$</FONT> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>12.4</FONT> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2><FONT size=2>$</FONT> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>1.2</FONT> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2><FONT size=2>$</FONT> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>10.4</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><SUP><FONT face=serif size=2>(b)</FONT></SUP> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>$</FONT> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>0.4</FONT> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>$</FONT> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>0.4</FONT> </FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="84%"><FONT size=2><FONT face=serif size=2>Outstanding</FONT></FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>$</FONT> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>3.5</FONT> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2>$ </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>&#151;</FONT> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>$</FONT> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>3.5</FONT> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp; </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2>$ </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>&#151;</FONT> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2>$ </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>&#151;</FONT> </FONT></TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD width="100%"><FONT face=serif size=1>Committed lines supported by 37 financial institutions.</FONT></TD></TR>
<TR>
<TD width="100%" colSpan=2><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(b)</FONT></TD>
<TD width="100%"><FONT face=serif size=1>Credco has the right to borrow a maximum amount of $11.6 billion with a commensurate maximum $1.2 billion reduction in the amount available to Parent Company.</FONT></TD></TR></TABLE> <P align=justify><FONT
face=serif size=2>The Company&#146;s committed facilities expire as follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="97%"><I><FONT face=serif size=1>(Billions)</FONT></I>&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" colSpan=2>&nbsp; &nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="97%" bgColor=#c0c0c0><FONT face=serif size=2>2008</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>0.3</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="97%"><FONT face=serif size=2>2010</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp; </TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>2.0</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="97%" bgColor=#c0c0c0><FONT face=serif size=2>2011</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>3.4</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="97%"><FONT face=serif size=2>2012</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>6.7</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="97%" bgColor=#c0c0c0><FONT face=serif size=2>Total</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>12.4</FONT> </TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>The availability of the credit lines is subject to the
Company&#146;s compliance with certain financial covenants, including the maintenance by the Company of consolidated tangible net worth of at least $4.1 billion, the maintenance by Credco of a 1.25 ratio of combined earnings and fixed charges to
fixed charges, and the compliance by Centurion Bank and FSB with applicable regulatory capital adequacy guidelines. At December 31, 2007, the Company&#146;s consolidated tangible net worth was approximately $9.6 billion, Credco&#146;s ratio of
combined earnings and fixed charges to fixed charges was 1.38 and Centurion Bank and FSB each exceeded their regulatory capital adequacy guidelines. </FONT></P> <P align=right><FONT face=serif size=1>47</FONT></P> <HR align=center width="100%"
noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif
size=2>Committed bank credit facilities do not contain material adverse change clauses, which may preclude borrowing under the credit facilities. The facilities may not be terminated should there be a change in the Company&#146;s credit
rating.</FONT></P> <P align=justify><B><FONT face=serif size=1><FONT size=2>OFF-BALANCE SHEET ARRANGEMENTS AND CONTRACTUAL OBLIGATIONS<BR></FONT></FONT></B><FONT face=serif size=2>The Company has identified both on- and off-balance sheet
transactions, arrangements, obligations, and other relationships that may have a material current or future effect on its financial condition, changes in financial condition, results of operations, or liquidity and capital resources.</FONT></P> <P
align=justify><B><FONT face=serif size=1>CONTRACTUAL OBLIGATIONS<BR></FONT></B><FONT face=serif size=2>The table below identifies on- and off-balance sheet transactions that represent contractually committed future obligations of the Company.
Purchase obligations include agreements to purchase goods and services that are enforceable and legally binding on the Company and that specify significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum, or variable
price provisions; and the approximate timing of the transaction.</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="75%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="24%" colSpan=14><FONT face=serif size=1>Payments due by year</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT size=2><FONT face=serif size=2>2013 and</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="75%"><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=2><FONT face=serif size=2>Total</FONT></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=2><FONT face=serif size=2>2008</FONT></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=2><FONT face=serif size=2>2009&#150;2010</FONT></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=2><FONT face=serif size=2>2011&#150;2012</FONT></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=2><FONT face=serif size=2>thereafter</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>On-Balance Sheet</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP><FONT face=serif size=2>:</FONT></FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT size=2><FONT face=serif size=2>Long-term debt</FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>&nbsp;55,285 </FONT></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>&nbsp;11,815</FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $&nbsp; </FONT></FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>22,323</FONT></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $&nbsp; </FONT></FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>12,206</FONT></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$&nbsp; </FONT></FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>8,941</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face=serif size=2>Interest payments on long-term debt</FONT><SUP><FONT face=serif size=2>(b)</FONT></SUP>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>12,965</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>2,604</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>3,355</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>2,010</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>4,996</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%"><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face=serif size=2>Other long-term liabilities</FONT><SUP><FONT face=serif size=2>(c)</FONT></SUP>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>291</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>114</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>44</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>30</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>103</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Off-Balance Sheet:</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%"><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face=serif size=2>Lease obligations</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>2,678</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>247</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>431</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>312</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>1,688</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="75%" bgColor=#c0c0c0><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face=serif size=2>Purchase obligations</FONT><SUP><FONT face=serif
size=2>(d)</FONT></SUP>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>3,182</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>1,037</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>1,223</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>842</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>80</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="75%"><FONT size=2><FONT face=serif size=2>Total</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>74,401</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>15,817</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>$&nbsp; </FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>27,376</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>$&nbsp; </FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>15,400</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>$&nbsp; </FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>15,808</FONT></FONT></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD vAlign=top align=left width="1%"><FONT face=serif size=1>(a)</FONT></TD>
<TD vAlign=top align=left width="1%">&nbsp;&nbsp;&nbsp; </TD>
<TD style="TEXT-ALIGN: justify" vAlign=top align=left width="98%"><FONT face=serif size=1>The above table excludes approximately $1.1 billion of tax liabilities that have been recorded in accordance with FASB Interpretation No. 48, &#147;Accounting
for Uncertainty in Income Taxes,&#148; as inherent complexities and the number of tax years currently open for examination in multiple jurisdictions do not permit reasonable estimates of payments, if any, to be made over a range of
years.</FONT></TD></TR>
<TR vAlign=bottom>
<TD vAlign=top align=left width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD vAlign=top align=left width="1%"><FONT face=serif size=1>(b)</FONT></TD>
<TD vAlign=top align=left width="1%"></TD>
<TD style="TEXT-ALIGN: justify" vAlign=top align=left width="98%"><FONT face=serif size=1>Estimated interest payments were calculated using the effective interest rate in place at December 31, 2007, and reflects the effect of existing interest rate
swaps. Actual cash flows may differ from estimated payments.</FONT></TD></TR>
<TR vAlign=bottom>
<TD vAlign=top align=left width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD vAlign=top align=left width="1%"><FONT face=serif size=1>(c)</FONT></TD>
<TD vAlign=top align=left width="1%"></TD>
<TD style="TEXT-ALIGN: justify" vAlign=top align=left width="98%"><FONT face=serif size=1>At December 31, 2007, there were no minimum required contributions, and no contributions are currently planned, for the U.S. American Express Retirement Plan.
For the U.S. and non-U.S. defined benefit pension and postretirement benefit plans, contributions in 2008 are anticipated to be approximately $41 million, and this amount has been included within other long-term liabilities. Remaining obligations
under defined benefit pension and postretirement benefit plans aggregating $465 million have not been included in the table above as the timing of such obligations is not determinable. Additionally, other long-term liabilities do not include $4.8
billion of Membership Rewards liabilities as the Company does not consider these to be long-term obligations. In previous years, Membership Reward obligations were included in the table above.</FONT></TD></TR>
<TR vAlign=bottom>
<TD vAlign=top align=left width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD vAlign=top align=left width="1%"><FONT face=serif size=1>(d)</FONT></TD>
<TD vAlign=top align=left width="1%"></TD>
<TD style="TEXT-ALIGN: justify" vAlign=top align=left width="98%"><FONT face=serif size=1>The purchase obligation amounts include expected spending by period under contracts that were in effect at December 31, 2007. Minimum contractual payments
associated with purchase obligations, including termination payments, were $528 million.</FONT></TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>The Company also has certain contingent obligations to make payments under contractual
agreements entered into as part of the ongoing operation of the Company&#146;s business, primarily with co-brand partners. The contingent obligations under such arrangements were approximately $4.3 billion as of December 31,
2007.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In addition to the off-balance sheet contractual obligations noted above, the Company has off-balance sheet arrangements that include guarantees, retained interests in structured
investments, unconsolidated variable interest entities and other off-balance sheet arrangements as more fully described below.</FONT></P> <P align=justify><B><FONT face=serif size=1>GUARANTEES<BR></FONT></B><FONT face=serif size=2>The Company&#146;s
principal guarantees are associated with cardmember services to enhance the value of owning an American Express card. At December 31, 2007, the Company had guarantees totaling approximately $77 billion related to cardmember protection plans, as well
as other guarantees in the </FONT><FONT face=serif size=2>ordinary course of business that are within the scope of FASB Interpretation No. 45, &#147;Guarantor&#146;s Accounting and Disclosure Requirements for Guarantees, Including Indirect
Guarantees of Indebtedness of Others&#148; (FIN 45).<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>See Note 13 to the Consolidated Financial Statements for further discussion regarding the Company&#146;s guarantees.</FONT></P> <P
align=justify><B><FONT face=serif size=1>CERTAIN OTHER OFF-BALANCE SHEET ARRANGEMENTS<BR></FONT></B><FONT face=serif size=2>At December 31, 2007, the Company had approximately $265 billion of unused credit available to cardmembers as part of
established lending product agreements. Total unused credit available to cardmembers does not represent potential future cash requirements, as a significant portion of this unused credit will likely not be drawn. The Company&#146;s charge card
products have no pre-set limit and, therefore, are not reflected</FONT></P> <P align=justify><FONT face=serif size=1>48</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><FONT face=serif size=2>in unused credit available
to cardmembers. As discussed in the Consolidated Liquidity and Capital Resources section, the Company&#146;s securitizations of cardmember loans are also off-balance sheet. The Company&#146;s cardmember receivables securitizations remain on the
Consolidated Balance Sheets.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>See Note 14 to the Consolidated Financial Statements for discussion regarding the Company&#146;s other off-balance sheet arrangements.</FONT></P> <P
align=justify><B><FONT face=serif size=1><FONT size=2>RISK MANAGEMENT</FONT></FONT></B></P> <P align=justify><B><FONT face=serif size=1>INTRODUCTION<BR></FONT></B><FONT face=serif size=2>The key objective of risk management at American Express is to
drive profitable growth and provide exceptional customer experiences, while limiting the exposure to adverse financial impacts. By building analytical and technological capabilities, creating transparent limits on risk exposures, optimizing
investment decision-making, and identifying unacceptable risks, risk management contributes to the Company&#146;s efforts to create shareholder and customer value.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In addition to
business risk, the Company recognizes four fundamental sources of risk:</FONT></P> <UL style="TEXT-ALIGN: justify"> <LI><FONT face=serif size=2>Credit Risk;<BR>&nbsp;</FONT> <LI><FONT face=serif size=2>Market Risk;</FONT> <BR>&nbsp; <LI><FONT
face=serif size=2>Liquidity Risk; and</FONT> <BR>&nbsp; <LI><FONT face=serif size=2>Operational Risk.</FONT></LI></UL> <P align=justify><FONT face=serif size=2>These risk types, which are described below, are interrelated and span the Company&#146;s
business units and geographic locations. Because of their nature and scope, the Company believes in managing and monitoring these risks centrally at the enterprise-wide level and/or at the business unit level, as appropriate. Further, management has
adopted well-defined risk-taking principles to guide the Company&#146;s business strategy, achieve long-term shareholder objectives and deliver outstanding customer experience.</FONT></P> <P align=justify><B><FONT face=serif size=1>PRINCIPLES<BR>
</FONT></B><FONT face=serif size=2>The Company&#146;s risk management is based on the following three principles:</FONT></P> <UL style="TEXT-ALIGN: justify"> <LI><FONT face=serif size=2>I</FONT><FONT face=serif size=2>ndependence of risk management
oversight;</FONT> <BR>&nbsp; <LI><FONT face=serif size=2>Management of risk exposures through Board-approved risk</FONT> <FONT face=serif size=2>limits; and</FONT> <BR>&nbsp; <LI><FONT face=serif size=2>Ultimate business ownership for risk-return
decision-</FONT><FONT face=serif size=2>making.</FONT></LI></UL> <P align=justify><FONT face=serif size=2>The Company&#146;s risk management leaders partner with business unit managers in making risk-return decisions using standardized risk metrics
with predictable outcomes. The measurement and </FONT><FONT face=serif size=2>reporting of these risks are performed independently by risk management leaders. Both risk and business unit managers remain jointly accountable for the outcome of
risk-return decisions within the Board approved limits.</FONT></P> <P align=justify><B><FONT face=serif size=1>GOVERNANCE<BR></FONT></B><FONT face=serif size=2>The Company&#146;s risk management governance begins with the Board oversight of risk
management parameters. The Audit Committee of the Board approves the Company&#146;s&nbsp;Enterprise-wide Risk Management Policy, which defines risk management objectives, tolerance, limits, and the governance structure. The Enterprise-wide Risk
Management Committee (ERMC), supports the Board in its oversight function and works closely with the Operating Committee, composed of the Company&#146;s most senior executives, to ensure that the Board-approved risk management objectives are fully
implemented in all businesses across the Company. The ERMC leads the Company&#146;s overall risk management activities and ensures compliance with the Enterprise-wide Risk Management policy&nbsp;by measuring and monitoring enterprise-wide risk,
establishing subordinate&nbsp;risk policies and overseeing risk practices and risk committees across the Company.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Daily risk management occurs at the business unit level where the
processes and infrastructure necessary to measure and manage risk are integrated into business unit goals. Business unit managers, in partnership with independent risk management leaders, make decisions on how to optimize risk-return decisions and
contain risk within established limits.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company has also developed a process that provides increased scrutiny throughout the risk management governance structure and requires higher
levels of approval for exposures above defined risk thresholds. The escalation process is designed to ensure that the large majority of transactions and initiatives can proceed within the existing business unit risk management processes, while risks
that are either large or with enterprise-wide implications receive enhanced scrutiny.</FONT></P> <P align=justify><B><FONT face=serif size=1>ROLES AND RESPONSIBILITIES<BR></FONT></B><FONT face=serif size=2>The ERMC is chaired by the Company&#146;s
Chief Risk Officer. Given the key role of credit risk in the Company business model, the Chief Risk Officer directly supervises officers responsible for (1) credit risk management, (2) the centralized functional tasks of worldwide card fraud and
information management, and (3) banking services. In addition, as the Chair of the ERMC, the Chief Risk Officer is responsible for monitoring and reporting on the Company&#146;s risk profile, initiating appropriate actions to ensure adherence to the
approved risk tolerance and escalation guidelines, as well as promoting best-in-class approaches to risk management throughout the Company.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In addition to the Chief Risk Officer, the
ERMC is composed of:</FONT></P> <UL style="TEXT-ALIGN: justify"> <LI><FONT face=serif size=2>T</FONT><FONT face=serif size=2>he Chief Market Risk Officer;</FONT> <BR>&nbsp; <LI><FONT face=serif size=2>The Chief Operational Risk
Officer;</FONT></LI></UL> <P align=right><FONT face=serif size=1>49</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <UL style="TEXT-ALIGN: justify"> <LI><FONT face=serif size=2>The
Chief Credit Officers representing all operating</FONT> <FONT face=serif size=2>segments of the Company; and</FONT> <BR>&nbsp; <LI><FONT face=serif size=2>The enterprise-wide leaders of compliance, controllership,</FONT> <FONT face=serif size=2>and
information security.</FONT> </LI></UL> <P align=justify><FONT face=serif size=2>As the most senior risk management entity, the ERMC draws on its significant expertise to analyze risk comprehensively and determine acceptable risk thresholds across
the Company.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In order to enhance its enterprise-wide risk assessment, the ERMC continues to upgrade risk management capabilities that help the Company make better business and
investment decisions as well as strengthen measuring, managing and transparent reporting of risk. The ERMC also launches focused risk management initiatives to assess the sources of significant
exposures.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Under the ERMC leadership, committees governing each risk type are established. These committees are responsible for translating the ERMC guidance and enterprise-wide risk
policies into policies and procedures for their corresponding risk types, managing and monitoring those risks, and strengthening risk capabilities.</FONT></P> <P align=justify><B><FONT face=serif size=1>CREDIT RISK MANAGEMENT
PROCESS<BR></FONT></B><FONT face=serif size=2>Credit risk is defined as the risk of loss from obligor or counterparty default. Leadership for overall credit risk </FONT><FONT face=serif size=2>management at the Company rests with the Chief Risk
Officer. Credit risks in the Company can be divided into two broad categories, each with distinct risk management tools and metrics: consumer credit risk and institutional credit risk. </FONT></P> <P align=justify><B><FONT face=serif size=1>CONSUMER
CREDIT RISK<BR></FONT></B><FONT face=serif size=2>Consumer credit risk arises principally from the Company&#146;s portfolio of consumer and small business charge cards, credit cards, lines of credit, and loans. Since such portfolio consists of
millions of borrowers across multiple geographies, occupations, and social segments, its risk is substantially reduced through diversification. In addition, the Company benefits from the fact that the typical credit profile of its cardmembers is
better than that of its many competitors, which is a combined result of brand positioning, underwriting, and customer management policies, premium customer servicing, and product reward features. The level of consumer credit risk losses is more
driven by general economic and legal conditions than by borrower-specific events.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>General principles and the overall framework for managing consumer credit risk across the Company are
defined in the Individual Credit Risk Policy approved by the ERMC. This policy is further supported by a highly organized structure of subordinate&nbsp;policies covering all facets of consumer credit extension, including prospecting, approvals,
authorizations, line management, collections, and fraud prevention. These policies ensure consistent application of credit management principles and standardized reporting of asset quality and loss recognition. </FONT><FONT face=serif
size=2>Moreover, consumer credit risk management is supported by sophisticated proprietary scoring and decision-making models.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Credit underwriting decisions are made based on
sophisticated evaluation of product economics and customer behavior predictions. The Company has developed unique decision logic for each customer interaction, including prospect targeting, new accounts, line assignment, balance transfer, cross
sell, and account management. Each decision benefits from sophisticated modeling capability that uses the most up-to-date proprietary information on customers, including payment history, purchase data, as well as insights from data feeds from credit
bureaus.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In addition to the impact of improved risk management processes, the Company&#146;s overall consumer credit performance has also benefited from the shifting mix of the
portfolio towards products that reward the customer for spending. Rewards attract higher spending from premium customers, which in turn leads to lower credit loss rates.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>However, the
Company&#146;s objective of driving profitable growth may be accomplished by the launch of new products or of existing products in new markets, which may exhibit higher loss rates. Also, the consumer credit performance is impacted by external
factors, such as general economic conditions, changes in legal environment, and competitive actions.</FONT></P> <P align=justify><B><FONT face=serif size=1>INSTITUTIONAL CREDIT RISK<BR></FONT></B><FONT face=serif size=2>Institutional credit risk
arises principally within the Company&#146;s corporate card services, merchant services, network services, and from the Company&#146;s investment activities. Unlike consumer credit risk, institutional credit risk is characterized by a lower loss
frequency but higher severity. It is affected both by general economic conditions and by borrower-specific events. The Company&#146;s senior risk officers recognize that the absence of large losses in any given year or over several years is not
necessarily representative of the risk of institutional portfolios, given the infrequency of loss events in such portfolios.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2>General principles and the overall framework for managing institutional
credit risk across the Company are defined in the Institutional Credit Risk Policy approved by the ERMC. </FONT><FONT face=serif size=2>The Institutional Risk Management Committee (IRMC) is responsible for implementation and enforcement of this
policy and for providing guidance to the credit officers of each business unit with substantial institutional credit risk exposures, who in turn make investment decisions in core risk capabilities, ensure proper implementation of the underwriting
standards and contractual rights of risk mitigation, monitor risk exposures, and determine risk mitigation actions. The IRMC formally reviews large institutional exposures to ensure compliance with ERMC guidelines and procedures. At the same time,
the IRMC provides continuous guidance to business unit risk teams to optimize risk-adjusted returns on capital. A company-wide risk rating utility and a specialized airline risk group provide independent risk assessment of institutional obligors.
</FONT></P> <P align=justify><FONT face=serif size=1>50</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><B><FONT face=serif size=1>MARKET RISK MANAGEMENT
PROCESS<BR></FONT></B><FONT face=serif size=2>Market risk is the risk to earnings or value resulting from movements in market prices. The Company&#146;s market risk exposure is primarily generated by: </FONT></P> <UL style="TEXT-ALIGN: justify">
<LI><FONT face=serif size=2>Interest rate risk in its card, insurance, and certificate</FONT> <FONT face=serif size=2>businesses; and</FONT> <BR>&nbsp; <LI><FONT face=serif size=2>Foreign exchange risk in its international operations.</FONT>
</LI></UL> <P align=justify><FONT face=serif size=2>General principles and the overall framework for managing market risk across the Company are defined in the Market Risk Policy approved by the ERMC. Market risk is centrally managed by the Market
Risk Committee, chaired by the Chief Market Risk Officer of the Company. Within each business, market risk exposures are monitored and managed by various asset/liability committees, guided by Board-approved policies covering derivative financial
instruments, funding and investments. Derivative financial instruments derive their value from an underlying variable or multiple variables, including interest rate, foreign exchange, and equity indices or prices. These instruments enable end users
to increase, reduce or alter exposure to various market risks and, for that reason, are an integral component of the Company&#146;s market risk and related asset/liability management strategy and processes. Use of derivative financial instruments is
incorporated into the discussion below as well as Note 12 to the Consolidated Financial Statements.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Market exposure is a byproduct of the delivery of products and services to
cardmembers. Interest rate risk is primarily generated by funding cardmember charges and fixed-rate loans with variable rate borrowings. These assets and liabilities generally do not create naturally offsetting positions with respect to basis,
re-pricing, or maturity characteristics.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>For the Company&#146;s charge card and fixed-rate lending products, interest rate exposure is managed by shifting the mix of funding toward
fixed-rate debt and by using derivative instruments, with an emphasis on interest rate swaps, which effectively fix interest expense for the length of the swap. The Company&#146;s strategy is to lengthen the maturity of interest rate hedges in
periods of low interest rates and to shorten their maturity in periods of high interest rates. Based on the expected 2008 debt funding requirements for worldwide charge card and fixed rate lending receivables, approximately 29 percent have been
funded with fixed rate debt or hedged as of December 31, 2007. The Company may change the amount hedged and the hedge percentage may change based on changes in business volumes and mix, among other factors. For the majority of its cardmember loans,
which are linked to a floating rate base and generally reprice each month, the Company uses floating rate funding. The Company regularly reviews its strategy and may modify it. Non-trading interest rate derivative financial instruments, primarily
interest rate swaps, with notional amounts of approximately $18 billion and $11 billion were outstanding at December 31, 2007 and 2006, respectively. These derivatives generally qualify for hedge accounting. A portion of these derivatives
outstanding as of December 31, 2007, extend to 2017.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The detrimental effect on the Company&#146;s pretax earnings of a hypothetical 100 basis point increase in interest rates would be
approximately $227 million ($205 million related to the U.S. dollar), based on the 2007 year-end positions. This effect, which is calculated using a static asset liability gapping model, is primarily determined by the volume of variable rate funding
of charge card and fixed-rate lending products for which the interest rate exposure is not managed by derivative financial instruments.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Foreign exchange risk is generated by cardmember
cross-currency charges, foreign currency denominated balance sheet exposures, translation exposure of foreign operations, and foreign currency earnings in international units. The Company&#146;s foreign exchange risk is managed primarily by entering
into agreements to buy and sell currencies on a spot basis or by hedging this market exposure to the extent it is economically justified through various means, including the use of derivative financial instruments such as foreign exchange forward,
options, and cross-currency swap contracts, which can help &#147;lock in&#148; the value of the Company&#146;s exposure to specific currencies.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>At December 31, 2007 and 2006, foreign
currency products with total notional amounts of approximately $15 billion and $10 billion, respectively, were outstanding. Derivative hedging activities related to cross-currency charges, balance sheet exposures, and foreign currency earnings
generally </FONT><FONT face=serif size=2>do </FONT><FONT face=serif size=2>not qualify for hedge accounting; however, derivative hedging activities related to translation exposure of foreign operations generally
do.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>With respect to cross-currency charges and balance sheet exposures, including related foreign exchange forward contracts outstanding, the effect on the Company&#146;s earnings of a
hypothetical 10 percent change in the value of the U.S. dollar would be immaterial as of December 31, 2007. With respect to foreign currency earnings, the adverse impact on pretax income of a 10 percent strengthening of the U.S. dollar related to
anticipated overseas operating results for the next 12 months, including any related foreign exchange forward contracts entered into in January 2008, would hypothetically be $115 million as of December 31, 2007. With respect to translation exposure
of foreign operations, including related foreign exchange forward contracts outstanding, a 10 percent strengthening in the U.S. dollar would result in an immaterial reduction in equity as of December 31, 2007.</FONT></P> <P align=justify><B><FONT
face=serif size=1>LIQUIDITY RISK MANAGEMENT PROCESS<BR></FONT></B><FONT face=serif size=2>Liquidity risk is defined as the inability to access cash and equivalents needed to meet business requirements and satisfy the Company&#146;s obligations.
General principles and the overall framework for managing liquidity risk across the Company are defined in the Liquidity Risk Policy approved by the ERMC. The Company balances the trade-offs between maintaining too much liquidity, which can be
costly and limit financial flexibility, with having inadequate liquidity, which may result in financial distress during a liquidity event. Liquidity risk is centrally</FONT></P> <P align=right><FONT face=serif size=1>51</FONT></P> <HR align=center
width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY </FONT></P> <P align=justify><FONT face=serif size=2>managed by the Funding and
Liquidity Committee, chaired by the Corporate Treasurer. The Company has developed a contingent funding plan that enables it to meet its daily cash obligations when access to unsecured funds in the debt capital markets is impaired or unavailable.
This plan is designed to ensure that the Company and all of its main operating entities could continuously maintain business operations for a 12-month period in which its access to unsecured financing is interrupted. The hypothetical 12-month
liquidity crisis is assumed to occur as a sudden and unexpected event that temporarily impairs access to or makes unavailable financing in the unsecured debt markets.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Liquidity risk is
managed both at an aggregate Company level and at the major legal entities in order to ensure that sufficient funding and contingent liquidity resources are available in the amount and in the location needed in a stress event. The Funding and
Liquidity Committee manages the forecasts of the Company&#146;s aggregate and subsidiary cash positions and financing requirements, the funding plans designed to satisfy those requirements under normal conditions, establishes guidelines to identify
the amount of contingent liquidity resources required, and monitors positions and determines any actions to be taken. Contingent liquidity planning also takes into account operating cash flexibilities.</FONT></P> <P align=justify><B><FONT face=serif
size=1>OPERATIONAL RISK MANAGEMENT PROCESS<BR></FONT></B><FONT face=serif size=2>The Company defines operational risk as the risk of not achieving business objectives due to inadequate or failed processes or information systems, human error or the
external environment (e.g., natural disasters) including losses due to failures to comply with laws and regulations. Operational risk is inherent in all business activities and can impact an organization through direct or indirect financial loss,
brand damage, customer dissatisfaction, or legal or regulatory penalties.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2>General principles and the overall framework for managing operational risk across the Company are defined in the
Operational Risk Policy approved by the ERMC. </FONT><FONT face=serif size=2>The Operational Risk Management Committee provides governance for the operational risk framework including related policies and is chaired by the Chief Operational Risk
Officer with member representation from business units and support groups. The business units have the responsibility for implementing the framework as well as for the day-to-day management of operational
risk.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Managing operational risk is an important priority for the Company. To mitigate such risk, the Company has developed a comprehensive multi-year program to identify, measure,
monitor, and report inherent and emerging operational risks through the process and entity-level risk self-assessments. The process risk self-assessment methodology is used to facilitate compliance with Section 404 of the Sarbanes-Oxley Act, and is
also used for non-financial operational risk self assessments. The Company also has a reporting process that provides business unit leaders with operational risk information on </FONT><FONT face=serif size=2>a quarterly basis to help them assess the
overall operational risks of their business units. These initiatives have resulted in improved operational risk intelligence and a heightened level of preparedness to manage risk events and conditions that may adversely impact the Company&#146;s
operations.</FONT></P> <P align=justify><B><FONT face=serif size=1>BUSINESS SEGMENT RESULTS<BR></FONT></B><FONT face=serif size=2>The Company&#146;s businesses are organized into two customer-focused groups, the Global Consumer Group and the Global
Business-to-Business Group. During 2007, the Company&#146;s</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>segments were realigned within the two major customer groups. Accordingly, U.S. Card Services</FONT><B><FONT face=serif
size=2> </FONT></B><FONT face=serif size=2>and International Card Services are aligned within the Global Consumer Group and Global Commercial Services</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>and Global Network &amp;
Merchant Services are aligned within the Global Business-to-Business Group. The Company has reclassified the prior period amounts to be consistent with the new reportable operating segments.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif
size=2>The Company considers a combination of factors when evaluating the composition of its reportable operating segments, including the results reviewed by the chief operating decision maker, economic characteristics, products and services
offered, classes of customers, product distribution channels, geographic considerations (primarily U.S. versus international), and regulatory environment considerations.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Results of the
business segments essentially treat each segment as a stand-alone business. The management reporting process that derives these results allocates income and expense using various methodologies as described below. </FONT></P> <P
align=justify><B><FONT face=serif size=1>REVENUES NET OF INTEREST EXPENSE<BR></FONT></B><FONT face=serif size=2>The Company allocates discount revenue and certain other revenues among segments using a transfer pricing methodology. Segments earn
discount revenue based on the volume of merchant business generated by cardmembers. Within the U.S. Card Services, International Card Services, and Global Commercial Services segments, discount revenue reflects the issuer component of the overall
discount rate; within the Global Network &amp; Merchant Services segment, discount revenue reflects the network and merchant component of the overall discount rate. Cardmember lending finance revenue and net card fees are directly attributable to
the segment in which they are reported. </FONT></P> <P align=justify><B><FONT face=serif size=1>EXPENSES<BR></FONT></B><FONT face=serif size=2>Marketing, promotion, rewards and cardmember services expenses are reflected in each segment based on
actual expenses incurred, with the exception of brand advertising, which is reflected in the Global Network &amp; Merchant Services segment. </FONT></P> <P align=justify><FONT face=serif size=1>52</FONT></P> <HR align=center width="100%" noShade
SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif
size=2>Human resources and other operating expenses, such as professional services, occupancy and equipment and communications, reflect expenses incurred directly within each segment. In addition, expenses related to the Company&#146;s support
services, such as technology costs, are allocated to each segment based on support service activities directly attributable to the segment. Other overhead expenses, such as staff group support functions, are allocated to segments based on each
segment&#146;s level of pretax income. Financing requirements are managed on a consolidated basis. Funding costs are allocated based on segment funding requirements.</FONT></P> <P align=justify><B><FONT face=serif size=1>PROVISIONS FOR LOSSES AND
BENEFITS<BR></FONT></B><FONT face=serif size=2>The provisions for losses and benefits include credit-related expenses and interest credited on investment certificates directly attributable to the segment in which they are reported.</FONT></P> <P
align=justify><B><FONT face=serif size=1>CAPITAL<BR></FONT></B><FONT face=serif size=2>Each business segment is allocated capital based on established business model operating requirements, risk measures, and regulatory capital requirements.
Business model operating requirements include capital needed to support operations and specific balance sheet items. The risk measures include considerations for credit, market, and operational risk.</FONT></P> <P align=justify><B><FONT face=serif
size=1>INCOME TAXES<BR></FONT></B><FONT face=serif size=2>Income tax provision (benefit) is allocated to each business segment based on the effective tax rates applicable to various businesses that make up the segment.</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><B><FONT face=serif size=1><FONT size=2>U.S. CARD SERVICES</FONT></FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%"></TD></TR>
<TR>
<TD width="100%" colSpan=10>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><B><FONT face=serif size=1>SELECTED INCOME STATEMENT DATA <BR>GAAP BASIS PRESENTATION</FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%"></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="100%" colSpan=10>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><FONT face=serif size=1>Years Ended December 31,</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=2><B><FONT face=serif size=2>2007</FONT></B></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=2><FONT face=serif size=2>2006</FONT></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=2><FONT face=serif size=2>2005</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Revenues</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><FONT size=2><FONT face=serif size=2>Discount revenue, net card fees and other</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>10,435</FONT></B></FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>9,421</FONT></FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>8,451</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Cardmember lending finance revenue</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>4,762</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>3,434</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>2,408</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><FONT size=2><FONT face=serif size=2>Securitization income:</FONT></FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="3%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT size=2>Excess spread, net (excluding <FONT face=serif size=2>servicing fees)</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>1,025</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>1,055</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>811</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><FONT size=2><FONT face=serif size=2>Servicing fees</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>425</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>407</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>412</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%" bgColor=#c0c0c0><FONT size=2>Gains on sales from securitizations<SUP><FONT face=serif size=2>(b)</FONT></SUP></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>57</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>27</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>37</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><FONT size=2><FONT face=serif size=2><FONT face=serif size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Securitization income, net</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>1,507</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>1,489</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>1,260</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Total revenues</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>16,704</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>14,344</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>12,119</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><FONT size=2><FONT face=serif size=2>Interest expense</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="3%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Cardmember lending</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>1,518</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>957</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>616</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><FONT size=2><FONT face=serif size=2>Charge card and other</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>964</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>767</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>529</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Revenues net of interest expense</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>14,222</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>12,620</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>10,974</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><FONT size=2><FONT face=serif size=2>Expenses</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="3%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT size=2>Marketing, promotion, rewards and <FONT face=serif size=2>cardmember services</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>5,140</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>4,445</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>3,831</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><FONT size=2>Human resources and other operating <FONT face=serif size=2>expenses</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>3,354</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>3,227</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>2,810</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT size=2><FONT face=serif size=2>Total</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>8,494</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>7,672</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>6,641</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><FONT size=2><FONT face=serif size=2>Provisions for losses</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>2,998</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>1,625</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>1,658</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Pretax segment income</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>2,730</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>3,323</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>2,675</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><FONT size=2><FONT face=serif size=2>Income tax provision</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>907</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp; </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>1,171</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>938</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="85%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Segment income</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>1,823</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>2,152</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>1,737</FONT></FONT></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD vAlign=top align=left width="1%"><FONT face=serif size=1>(a)</FONT></TD>
<TD vAlign=top align=left width="1%">&nbsp;&nbsp;&nbsp; </TD>
<TD style="TEXT-ALIGN: justify" vAlign=top align=left width="98%"><FONT face=serif size=1>Excess spread is the net positive cash flow from interest and fee collections allocated to the investor&#146;s interests after deducting the interest paid on
investor certificates, credit losses, contractual servicing fees, other expenses, and the changes in the fair value of the interest-only strip in 2007.</FONT></TD></TR>
<TR vAlign=bottom>
<TD vAlign=top align=left width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD vAlign=top align=left width="1%"><FONT face=serif size=1>(b)</FONT></TD>
<TD vAlign=top align=left width="1%"></TD>
<TD style="TEXT-ALIGN: justify" vAlign=top align=left width="98%"><FONT face=serif size=1>Excludes $144 million and $(84) million in 2007, $83 million and $(104) million in 2006, and $144 million and $(118) million in 2005, of impact from cardmember
loan sales and maturities, respectively, reflected in provisions for losses.</FONT></TD></TR></TABLE> <P align=right><FONT face=serif size=1>53</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY </FONT></P>
<TABLE style="LINE-HEIGHT: 14pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD noWrap align=left width="89%" colSpan=4><B><FONT face=serif size=1>SELECTED STATISTICAL INFORMATION</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="98%" colSpan=10>&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=1>Years Ended December 31,</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><I><FONT face=serif size=1>(Billions, except percentages and where indicated)</FONT></I></TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><STRONG>2007</STRONG></FONT></TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2>&nbsp; <FONT size=2>2006</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2>&nbsp; <FONT size=2>2005</FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Card billed business</FONT>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>$</FONT></B>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>375.2</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>333.4</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>$ </FONT></FONT></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>292.8</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT size=2><FONT face=serif size=2>Total cards-in-force </FONT><I><FONT face=serif size=2>(millions)</FONT></I>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>43.3</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>40.7</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>37.5</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Basic cards-in-force </FONT><I><FONT face=serif size=2>(millions)</FONT></I>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>32.3</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>30.1</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>27.7</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT size=2>Average basic cardmember spending <I><FONT face=serif size=2>(dollars)</FONT></I>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><STRONG>$</STRONG>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><STRONG>12,011</STRONG> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>11,521</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT> </FONT></TD>
<TD noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>10,996</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>U.S. Consumer Travel:</FONT>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%">&nbsp; &nbsp; &nbsp;<FONT size=2><FONT face=serif size=2>Travel sales</FONT>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>3.0</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>2.4</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$ </FONT></FONT></TD>
<TD noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>1.9</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp; &nbsp; &nbsp;<FONT size=2><FONT face=serif size=2>Travel commissions and fees/sales</FONT>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>8.0</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>8.4</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>% </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>8.7</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>% </FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT size=2><FONT face=serif size=2>Total segment assets</FONT>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>82.3</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>71.0</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$ </FONT></FONT></TD>
<TD noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>61.6</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Segment capital</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>$</FONT></B>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>4.5</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>4.7</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>$ </FONT></FONT></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>4.6</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><FONT size=2><FONT face=serif size=2>Return on segment capital</FONT><SUP><FONT face=serif size=2>(b)</FONT></SUP>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp; </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>40.2</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp; </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif>47.4</FONT> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>% </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp; </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>41.0</FONT> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>% </FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Cardmember receivables:</FONT>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%">&nbsp; &nbsp; &nbsp;<FONT size=2><FONT face=serif size=2>Total receivables</FONT>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>21.4</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>20.6</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$ </FONT></FONT></TD>
<TD noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>19.2</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2><FONT face=serif size=2>90 days past due as</FONT> <FONT face=serif size=2>a % of total</FONT>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>3.9</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>3.3</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>% </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>3.4</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>% </FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2><FONT face=serif size=2>Net loss ratio as a %</FONT> <FONT face=serif size=2>of charge volume</FONT>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp; </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>0.31</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp; </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>0.28</FONT> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>% </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp; </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>0.30</FONT> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>% </FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Cardmember lending &#151;&nbsp;<FONT face=serif size=2>owned basis</FONT><SUP><FONT face=serif size=2>(c)</FONT></SUP><FONT face=serif size=2>:</FONT>&nbsp;
</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%">&nbsp; &nbsp; &nbsp;<FONT size=2><FONT face=serif size=2>Total loans</FONT>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>43.3</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>33.6</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$ </FONT></FONT></TD>
<TD noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>24.8</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp; &nbsp; &nbsp;<FONT size=2><FONT face=serif size=2>30 days past due loans as a % of total</FONT>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>3.5</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>2.7</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>% </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>2.3</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>% </FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT size=2><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Average loans</FONT>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>37.1</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>27.6</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$ </FONT></FONT></TD>
<TD noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>21.0</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp; &nbsp; &nbsp;<FONT size=2><FONT face=serif size=2>Net write-off rate</FONT>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>3.9</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>3.0</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>% </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>3.9</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>% </FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2><FONT face=serif size=2>Net finance revenue</FONT><SUP><FONT face=serif size=2>(d)</FONT></SUP><FONT face=serif
size=2>/</FONT><FONT face=serif size=2>average loans</FONT>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp; </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>8.7</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp; </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>9.0</FONT> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>% </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp; </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>8.5</FONT> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>% </FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Cardmember lending &#151; managed basis<SUP><FONT face=serif size=2>(e)</FONT></SUP><FONT face=serif size=2>:</FONT>&nbsp; </FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%">&nbsp; &nbsp; &nbsp;<FONT size=2><FONT face=serif size=2>Total loans</FONT>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>66.0</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>53.8</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$ </FONT></FONT></TD>
<TD noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>46.0</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp; &nbsp; &nbsp;<FONT size=2><FONT face=serif size=2>30 days past due loans as a % of total</FONT>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>3.2</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>2.6</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>% </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>2.3</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>% </FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%">&nbsp; &nbsp; &nbsp;<FONT size=2><FONT face=serif size=2>Average loans</FONT>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>58.3</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>48.0</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$ </FONT></FONT></TD>
<TD noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>41.5</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp; &nbsp; &nbsp;<FONT size=2><FONT face=serif size=2>Net write-off rate</FONT>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>3.8</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>2.9</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>% </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>4.1</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>% </FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2><FONT face=serif size=2>Net finance revenue</FONT><SUP><FONT face=serif size=2>(d)</FONT></SUP><FONT face=serif
size=2>/</FONT><FONT face=serif size=2>average loans</FONT>&nbsp; </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp; </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>9.0</FONT></B> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp; </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>9.1</FONT> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2>% </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp; </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>9.0</FONT> </FONT></TD>
<TD style="BORDER-BOTTOM: #ffffff 1.5pt solid" noWrap align=left width="1%"><FONT size=2>% </FONT></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD vAlign=top align=left width="1%"><FONT face=serif size=1>(a)</FONT></TD>
<TD vAlign=top align=left width="1%">&nbsp;&nbsp;&nbsp; </TD>
<TD style="TEXT-ALIGN: justify" vAlign=top align=left width="98%"><FONT face=serif size=1>Segment capital includes an allocation attributable to goodwill of $175 million, $168 million, and $168 million as of the years ended December 31, 2007, 2006,
and 2005, respectively.</FONT></TD></TR>
<TR vAlign=bottom>
<TD vAlign=top align=left width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD vAlign=top align=left width="1%"><FONT face=serif size=1>(b)</FONT></TD>
<TD vAlign=top align=left width="1%"></TD>
<TD style="TEXT-ALIGN: justify" vAlign=top align=left width="98%"><FONT face=serif size=1>Computed on a trailing 12-month basis using segment income and equity capital allocated to segments based upon specific business operational needs, risk
measures, and regulatory capital requirements.</FONT></TD></TR>
<TR vAlign=bottom>
<TD vAlign=top align=left width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD vAlign=top align=left width="1%"><FONT face=serif size=1>(c)</FONT></TD>
<TD vAlign=top align=left width="1%"></TD>
<TD style="TEXT-ALIGN: justify" vAlign=top align=left width="98%"><FONT face=serif size=1>&#147;Owned,&#148; a GAAP basis measurement, reflects only cardmember loans included in the Company&#146;s Consolidated Balance Sheets.</FONT></TD></TR>
<TR>
<TD vAlign=top align=left width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top align=left width="1%"><FONT size=1>(d)</FONT></TD>
<TD vAlign=top align=left width="1%"></TD>
<TD vAlign=top align=left width="98%"><FONT size=1>Net finance revenue represents cardmember lending finance revenue less cardmember lending interest expense.</FONT></TD></TR>
<TR vAlign=bottom>
<TD vAlign=top align=left width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD vAlign=top align=left width="1%"><FONT face=serif size=1>(e)</FONT></TD>
<TD vAlign=top align=left width="1%"></TD>
<TD style="TEXT-ALIGN: justify" vAlign=top align=left width="98%"><FONT face=serif size=1>Includes on-balance sheet cardmember loans and off-balance sheet securitized cardmember loans. The difference between the &#147;owned basis&#148; (GAAP)
information and &#147;managed basis&#148; information is attributable to the effects of securitization activities. Refer to the information set forth under &#147;Differences between GAAP and Managed Basis Presentation&#148; below for further
discussion of the managed basis presentation.</FONT></TD></TR></TABLE> <P align=justify><B><FONT face=serif size=1>RESULTS OF OPERATIONS FOR THE THREE YEARS ENDED DECEMBER 31, 2007 &#150; GAAP BASIS<BR></FONT></B><FONT face=serif size=2>The
following discussion of U.S. Card Services&#146; segment results of operations is presented on a GAAP basis.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>U.S. Card Services reported segment income of $1.8 billion for 2007, a $329
million or 15 percent decrease from $2.2 billion in 2006, which increased $415 million or 24 percent from 2005.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Revenues Net of Interest Expense</STRONG><BR></FONT><FONT face=serif
size=2>In 2007, U.S. Card Services&#146; revenues net of interest expense increased $1.6 billion or 13 percent to $14.2 billion due to increased cardmember lending finance revenue, higher discount revenue, net card fees and other, partially offset
by higher interest expense. Discount revenue, net card fees and other of $10.4 billion in 2007, increased $1.0 billion or 11 percent from 2006, largely due to a 13 percent increase in billed business volumes in 2007 and higher other revenues. The
increase in billed business reflected a 4 percent increase in spending per proprietary basic card and 7 percent growth in basic cards-in-force. Within U.S. Card Services, consumer billed business grew 12 percent and small business volumes rose 15
percent in 2007. In addition, discount revenue, net card fees and other reflected higher interest income on the Company&#146;s loan to Delta referred to below. Cardmember lending finance revenue of $4.8 billion in 2007 was $1.3 billion or 39 percent
higher than in 2006, primarily due to 34 percent growth in average owned lending balances, a slightly higher portfolio yield, in addition to the previously mentioned reduction in revenue resulting from higher than anticipated cardmember completion
of consumer debt repayment programs and certain payment waivers in 2006. Cardmember lending interest expense and charge card and other interest expense of $1.5 billion and $964 million in 2007, rose $561 million or 59 percent and $197 million or 26
percent as compared to a year ago, respectively, reflecting higher effective cost of funds and debt funding levels in support of greater loan and receivable balances. Revenues net of interest expense of $12.6 billion in 2006 were $1.6 billion or 15
percent higher than 2005 as a result of higher cardmember lending finance revenue, increased discount revenue, net card fees and other, and greater securitization income, net, partially offset by increased interest expense. </FONT></P> <P
align=justify><FONT face=serif size=2><STRONG>Expenses</STRONG><BR></FONT><FONT face=serif size=2>During 2007, U.S. Card Services&#146; expenses increased $822 million or 11 percent to $8.5 billion, due to higher marketing, promotion, rewards and
cardmember services expenses, and greater human resources and other operating expenses.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>Expenses in 2007 and 2006 included $13 million and $23 million, respectively, of charges
related to reengineering activities primarily within consumer and small business services.</FONT></P> <P align=justify><FONT face=serif size=1>54</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><FONT face=serif size=2>Expenses in 2006 of $7.7
billion were $1.0 billion or 16 percent higher than in 2005, primarily due to higher marketing, promotion, rewards and cardmember services expenses, and greater human resources and other operating
expenses.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Marketing, promotion, rewards and cardmember services expenses increased $695 million or 16 percent in 2007 to $5.1 billion, reflecting the increase to the Membership Rewards
liability resulting from enhancements to the method of liability estimation, a higher redemption rate, and higher volume-driven rewards costs, partially offset by slightly lower marketing and promotion expenses and the charges associated with
adjustments made to the U.S. Membership Rewards reserve model in 2006 discussed previously. Marketing, promotion, rewards and cardmember services expenses increased $614 million or 16 percent in 2006 to $4.4 billion, due to higher volume-related
rewards costs, the charge associated with certain adjustments to the Membership Rewards reserve model in the United States discussed previously, and increased marketing and promotion costs. Human resources and other operating expenses of $3.4
billion in 2007 increased $127 million or 4 percent from 2006. The increase was due to higher technology and volume-related operating expenses partially offset by the previously discussed pension-related gain of $36 million in 2007 and the
reclassification to revenues of certain card acquisition-related costs beginning in the third quarter of 2006 as discussed previously. Human resources and other operating expenses of $3.2 billion in 2006 increased $417 million or 15 percent from
2005. The increase was due to greater professional services expenses, increased human resources expenses, higher technology service fees, and generally higher volume-related and business-building expenses partially offset by the reclassification to
revenues of certain card acquisition-related costs beginning prospectively July 1, 2006, as discussed previously.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Provisions for losses increased $1.4 billion or 84 percent to $3.0
billion for 2007 compared to 2006, reflecting increased write-off and delinquency rates, the impact of loan growth, and the credit-related charge previously discussed. Provisions for losses decreased $33 million or 2 percent to $1.6 billion for 2006
compared to 2005 due to a comparatively lower level of bankruptcy-related charge offs, lower than expected costs for Hurricane Katrina losses that were provided for in 2005, as well as improved collections, and strong credit quality, partially
offset by the impact of strong volume and loan growth.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The effective tax rate was 33 percent for 2007 compared to 35 percent for both 2006 and 2005. The effective tax rate for 2007
reflected $74 million of tax benefits previously discussed.</FONT></P> <P align=justify><B><FONT face=serif size=1>DIFFERENCES BETWEEN GAAP AND MANAGED BASIS PRESENTATION<BR></FONT></B><FONT face=serif size=2>For U.S. Card Services, the managed
basis presentation assumes that there have been no off-balance sheet securitization transactions, i.e., all securitized cardmember loans and related </FONT><FONT face=serif size=2>income effects are reflected as if they were in the Company&#146;s
balance sheets and income statements, respectively. For the managed basis presentation, revenue and expenses related to securitized cardmember loans are reflected in other commissions and fees (included in discount revenue, net card fees and other
in the U.S. Card Services Selected Financial Information), cardmember lending finance revenue, cardmember lending interest expense, and provisions for losses. On a managed basis, there is no securitization income, net as the managed basis
presentation assumes no securitization transactions have occurred.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company presents U.S. Card Services information on a managed basis because that is the way the Company&#146;s
management views and manages the business. Management believes that a full picture of trends in the Company&#146;s cardmember lending business can only be derived by evaluating the performance of both securitized and non-securitized cardmember
loans. Management also believes that use of a managed basis presentation presents a more accurate picture of the key dynamics of the cardmember lending business.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>Irrespective of
the on- and off-balance sheet funding mix, it is important for management and investors to see metrics 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 </FONT><FONT face=serif size=2>time. It is also important for investors to see the overall growth of cardmember loans and related revenue in order to evaluate market share. These metrics are significant
in evaluating the Company&#146;s performance and can only be properly assessed when all non-securitized and securitized cardmember loans are viewed together on a managed basis. The Company does not currently securitize international
loans.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>On a GAAP basis, revenue and expenses from securitized cardmember loans are reflected in the Company&#146;s income statements in securitization income, net, fees and commissions,
and provisions for losses for cardmember lending. At the time of a securitization transaction, the securitized cardmember loans are removed from the Company&#146;s balance sheet, and the resulting gain on sale is reflected in securitization income,
net as well as an impact to provisions for losses (credit reserves are no longer recorded for the cardmember loans once sold).</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>Over the life of a securitization transaction, the
Company recognizes servicing fees and other net revenues (referred to as &#147;excess spread&#148;) related to the interests sold to investors (i.e., the investors&#146; interests). These amounts, in addition to changes in the fair value of
interest-only strips, are reflected in securitization income, net and fees and commissions. The Company also recognizes cardmember lending finance revenue over the life of the securitization transaction related to the interest it retains (i.e., the
seller&#146;s interest). At the maturity of a securitization transaction, cardmember loans on the balance </FONT></P> <P align=right><FONT face=serif size=1>55</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT
face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><FONT face=serif size=2>sheet increase, and the
impact of the incremental required loss reserves is recorded in provisions for losses.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>As presented, in aggregate over the life of a securitization transaction, the pretax income impact
to the Company is the same whether or not the Company had securitized cardmember loans or funded these loans through other financing activities (assuming the same financing costs). The income statement classifications, however, of specific items
will differ.</FONT></P> <P align=justify><B><FONT face=serif size=1><FONT size=2>U.S. CARD SERVICES</FONT></FONT></B></P>
<TABLE style="LINE-HEIGHT: 14pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD noWrap align=left width="82%"><STRONG><FONT size=1>SELECTED FINANCIAL INFORMATION <BR>MANAGED BASIS PRESENTATION</FONT></STRONG> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="82%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="82%"><FONT face=serif size=1>Years Ended December 31,</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="82%"><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=2>&nbsp; <B><FONT face=serif size=2>2007</FONT></B></FONT></TD>
<TD noWrap align=right width="2%" colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=2>&nbsp; <FONT face=serif size=2>2006</FONT></FONT></TD>
<TD noWrap align=right width="2%" colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=2>&nbsp; <FONT face=serif size=2>2005</FONT></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT size=2>Discount revenue, net card fees <FONT face=serif size=2>and other:</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="82%">&nbsp; &nbsp; &nbsp;<FONT size=2><FONT face=serif size=2>Reported for the period (GAAP)</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>10,435</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>9,421</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>8,451</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="82%" bgColor=#c0c0c0><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2>Securitization adjustments</FONT><SUP><FONT face=serif
size=2>(a)</FONT></SUP>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>310</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>199</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>210</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="82%"><FONT size=2><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2>Managed discount revenue, net </FONT>card fees and
other</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>10,745</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>9,620</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>8,661</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT size=2>Cardmember lending finance <FONT face=serif size=2>revenue:</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="82%"><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2>Reported for the period (GAAP)</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>4,762</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>3,434</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>2,408</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="82%" bgColor=#c0c0c0><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2>Securitization adjustments</FONT><SUP><FONT face=serif
size=2>(a)</FONT></SUP>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>3,130</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>2,937</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>2,692</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="82%"><FONT size=2><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Managed finance revenue</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>7,892</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>6,371</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>5,100</FONT></FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Securitization income, net:</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="82%"><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2>Reported for the period (GAAP)</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>1,507</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>1,489</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>1,260</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="82%" bgColor=#c0c0c0><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2>Securitization adjustments</FONT><SUP><FONT face=serif
size=2>(a)</FONT></SUP>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>(1,507</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>)</FONT></B>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>(1,489</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>)</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>(1,260</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>)</FONT>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="82%"><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2>Managed securitization income, </FONT><FONT face=serif
size=2>net</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>&#151;</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>&#151;</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>&#151;</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT size=2>Cardmember lending interest <FONT face=serif size=2>expense:</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="82%"><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2>Reported for the period (GAAP)</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>1,518</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>957</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>616</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="82%" bgColor=#c0c0c0><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2>Securitization adjustments</FONT><SUP><FONT face=serif
size=2>(a)</FONT></SUP>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>1,136</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>1,057</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>739</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="82%"><FONT size=2><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2>Managed cardmember lending </FONT>interest expense</FONT>&nbsp;
</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>2,654</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>2,014</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>1,355</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Provisions for losses:</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="82%"><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2>Reported for the period (GAAP)</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>2,998</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>1,625</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>1,658</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="82%" bgColor=#c0c0c0><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2>Securitization adjustments</FONT><SUP><FONT face=serif
size=2>(a)</FONT></SUP>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>871</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>550</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>924</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="82%"><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2>Managed provisions for losses</FONT>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>3,869</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>2,175</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>2,582</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD vAlign=top align=left width="1%"><FONT face=serif size=1>(a)</FONT></TD>
<TD vAlign=top align=left width="1%">&nbsp;&nbsp;&nbsp; </TD>
<TD style="TEXT-ALIGN: justify" vAlign=top align=left width="98%"><FONT face=serif size=1>The managed basis presentation assumes that there have been no off-balance sheet securitization transactions, i.e., all securitized cardmember loans and
related income effects are reflected as if they were in the Company&#146;s balance sheets and income statements, respectively. For the managed basis presentation, revenue and expenses related to securitized cardmember loans are reflected in other
commissions and fees (included above in discount revenue, net card fees and other), cardmember lending finance revenue, cardmember lending interest expense, and provisions for losses. On a managed basis, there is no securitization income, net as the
managed basis presentation assumes no securitization transactions have occurred.</FONT></TD></TR></TABLE> <P align=justify><B><FONT face=serif size=1>RESULTS OF OPERATIONS FOR THE THREE YEARS ENDED DECEMBER 31, 2007 &#150; MANAGED
BASIS<BR></FONT></B><FONT face=serif size=2>The following discussion of U.S. Card Services is on a managed basis.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Discount revenue, net card fees and other in 2007 and 2006 increased
$1.1 billion or 12 percent and $959 million or 11 percent to $10.7 billion and $9.6 billion, respectively, largely due to increases in billed business volumes and higher other commissions and fees. The increase in discount revenue, net card fees and
other in 2007 was also due to higher interest income on the Company&#146;s loan to Delta in 2007. Cardmember lending finance revenue increased $1.5 billion or 24 percent and $1.3 billion or 25 percent to $7.9 billion and $6.4 billion in 2007 and
2006, respectively, primarily due to 21 percent and 16 percent, respectively, growth in the average managed lending balances and a slightly higher portfolio yield. The increase in cardmember lending finance revenue in 2006 was partially offset by a
reduction in revenue resulting from higher than anticipated cardmember completion of consumer debt repayment programs and certain payment waivers in 2006. Cardmember lending interest expense in 2007 and 2006 increased $640 million or 32 percent and
$659 million or 49 percent to $2.7 billion and $2.0 billion, respectively, due to growth in average managed lending balances and higher costs of funds. Provisions for losses increased $1.7 billion or 78 percent to $3.9 billion for 2007, due to
increased write-off and delinquency rates, the impact of strong loan and volume growth, and the credit-related charge previously discussed.</FONT><B><FONT face=serif size=2></FONT></B> <FONT face=serif size=2>Provisions for losses decreased $407
million or 16 percent to $2.2 billion for 2006, reflecting a comparatively lower level of bankruptcy-related charge offs, lower than expected costs for Hurricane Katrina losses that were provided for in 2005, as well as improved collections, and
strong credit quality, partially offset by the impact of strong volume and loan growth.</FONT></P> <P align=justify><FONT face=serif size=1>56</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD noWrap align=left width="86%" colSpan=4><B><FONT face=serif size=1><FONT size=2>INTERNATIONAL CARD SERVICES</FONT></FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR>
<TD width="99%" colSpan=13>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="86%" colSpan=4><B><FONT face=serif size=1>SELECTED INCOME STATEMENT DATA</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1pt solid" width="98%" colSpan=12>&nbsp;</TD>
<TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%"><FONT face=serif size=1>Years Ended December 31,</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="81%"><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=2><B><FONT face=serif size=2>2007</FONT></B></FONT></TD>
<TD noWrap align=right width="2%" colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=2><FONT face=serif size=2>2006</FONT></FONT><FONT size=2></FONT></TD>
<TD noWrap align=right width="2%" colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=2><FONT face=serif size=2>2005</FONT></FONT><FONT size=2></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Revenues</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%"><FONT size=2><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Discount revenue, net card fees and other</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>3,703</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>3,405</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>3,210</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="81%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Cardmember lending finance revenue</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>1,372</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>1,146</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>967</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="81%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2><FONT face=serif size=2>Total revenues</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>5,075</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>4,551</FONT></FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>4,177</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Interest expense</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%"><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2>Cardmember lending</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>493</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>393</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>323</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="81%" bgColor=#c0c0c0><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2>Charge card and other</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>251</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>193</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>134</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="81%"><FONT size=2><FONT face=serif size=2>Revenues net of interest expense</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>4,331</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>3,965</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>3,720</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Expenses</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%"><FONT size=2><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Marketing, promotion, rewards and cardmember services</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>1,566</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>1,109</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>998</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="81%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Human resources and other operating expenses</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>1,836</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>1,692</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>1,795</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="81%"><FONT size=2><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Total</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>3,402</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>2,801</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>2,793</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="81%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Provisions for losses</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>812</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>852</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>629</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%"><FONT size=2><FONT face=serif size=2>Pretax segment income</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>117</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>312</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>298</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="81%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Income tax benefit</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>(174</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>)</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>(31</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>)</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>(8</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>)</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="81%"><FONT size=2><FONT face=serif size=2>Segment income</FONT>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>291</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>343</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>306</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR></TABLE><BR>
<TABLE style="LINE-HEIGHT: 14pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD noWrap align=left width="89%" colSpan=4><B><FONT face=serif size=1><FONT size=2>INTERNATIONAL CARD SERVICES</FONT></FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR>
<TD width="98%" colSpan=10>&nbsp;</TD>
<TD align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%" colSpan=4><B><FONT face=serif size=1>SELECTED STATISTICAL INFORMATION</FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="98%" colSpan=10>&nbsp;&nbsp; &nbsp; &nbsp; &nbsp;</TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT size=1>Years Ended December 31,</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><I><FONT face=serif size=1>(Billions, except percentages and where indicated)</FONT></I>&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=2>&nbsp;</FONT> <FONT size=2><B><FONT face=serif size=2>2007</FONT></B></FONT></TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=2>&nbsp;</FONT> <FONT size=2><FONT face=serif size=2>2006</FONT></FONT></TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT size=2>&nbsp;</FONT> <FONT size=2><FONT face=serif size=2>2005</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Card billed business</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>$</FONT></B>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>98.0</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>86.3</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>76.4</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT size=2><FONT face=serif size=2>Total cards-in-force</FONT> <I><FONT face=serif size=2>(millions)</FONT></I>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>16.0</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>15.6</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>16.3</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Basic cards-in-force</FONT> <I><FONT face=serif size=2>(millions)</FONT></I>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>11.3</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>11.2</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>11.6</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#ffffff><FONT size=2>Average basic cardmember <FONT face=serif size=2>spending</FONT> <I><FONT face=serif size=2>(dollars)</FONT></I>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=2><STRONG>$</STRONG>&nbsp;<B><FONT face=serif></FONT></B></FONT></TD>
<TD noWrap align=right width="3%" bgColor=#ffffff><STRONG><FONT size=2>8,772</FONT></STRONG></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=2><FONT face=serif size=2>7,491</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="2%" bgColor=#ffffff><FONT size=2><FONT face=serif size=2>6,805</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>International Consumer Travel:</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#ffffff><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Travel sales</FONT> <I><FONT face=serif size=2>(millions)</FONT></I>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=2><FONT face=serif size=2><STRONG>$</STRONG>&nbsp;</FONT></FONT></TD>
<TD noWrap align=right width="3%" bgColor=#ffffff><STRONG><FONT size=2>1,113</FONT></STRONG></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=2><FONT face=serif size=2>922</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="2%" bgColor=#ffffff><FONT size=2><FONT face=serif size=2>885</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Travel commissions and </FONT><FONT face=serif size=2>fees/sales</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>8.6</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><STRONG><FONT size=2>%</FONT></STRONG></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>8.7</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>9.3</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT size=2><FONT face=serif size=2>Total segment assets</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>21.4</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>18.9</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>17.4</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Segment capital</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>$</FONT></B>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>2.1</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>1.7</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>1.9</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><FONT size=2><FONT face=serif size=2>Return on segment capital</FONT><SUP><FONT face=serif size=2>(b)</FONT></SUP>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>15.3</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"><STRONG><FONT size=2>%</FONT></STRONG></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>17.9</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>%</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>16.4</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>%</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Cardmember receivables:</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Total receivables</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>6.6</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>6.0</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>5.5</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>90 days past due as a % of total</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>1.8</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><STRONG><FONT size=2>%</FONT></STRONG></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>2.3</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>2.2</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#ffffff><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net loss ratio as a % of </FONT><FONT face=serif size=2>charge volume</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT size=2><B><FONT face=serif size=2>0.26</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><STRONG><FONT size=2>%</FONT></STRONG></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT size=2><FONT face=serif size=2>0.26</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=2>%</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#ffffff><FONT size=2><FONT face=serif size=2>0.25</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=2>%</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Cardmember lending:</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#ffffff><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Total loans</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=2><B><FONT face=serif size=2>$</FONT></B>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=2><B><FONT face=serif size=2>11.2</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=2><FONT face=serif size=2>9.7</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="2%" bgColor=#ffffff><FONT size=2><FONT face=serif size=2>8.3</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; 30 days past due loans as a % of total</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>2.8</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><STRONG><FONT size=2>%</FONT></STRONG></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>2.9</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>2.8</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#ffffff><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Average loans</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=2><B><FONT face=serif size=2>$</FONT></B>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=2><B><FONT face=serif size=2>10.0</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=2><FONT face=serif size=2>8.9</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=2><FONT face=serif size=2>$</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="2%" bgColor=#ffffff><FONT size=2><FONT face=serif size=2>7.4</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net write-off rate</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>5.6</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><STRONG><FONT size=2>%</FONT></STRONG></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>5.9</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>4.7</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="84%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net finance revenue</FONT><SUP><FONT face=serif size=2>(c)</FONT></SUP><FONT face=serif size=2>/</FONT><FONT
face=serif size=2>average loans</FONT>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>8.8</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><STRONG><FONT size=2>%</FONT></STRONG></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>8.5</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2>%</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>8.8</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #ffffff 1.5pt solid" noWrap align=left width="1%"><FONT size=2>%</FONT></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD vAlign=top align=left width="1%"><FONT face=serif size=1>(a)</FONT></TD>
<TD vAlign=top align=left width="1%">&nbsp;&nbsp;&nbsp;</TD>
<TD style="TEXT-ALIGN: justify" vAlign=top align=left width="98%"><FONT face=serif size=1>Segment capital includes an allocation attributable to goodwill of $519 million, $518 million, and $542 million as of the years ended December 31, 2007, 2006,
and 2005, respectively.</FONT></TD></TR>
<TR vAlign=bottom>
<TD vAlign=top align=left width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD vAlign=top align=left width="1%"><FONT face=serif size=1>(b)</FONT></TD>
<TD vAlign=top align=left width="1%"></TD>
<TD style="TEXT-ALIGN: justify" vAlign=top align=left width="98%"><FONT face=serif size=1>Computed on a trailing 12-month basis using segment income and equity capital allocated to segments based upon specific business operational needs, risk
measures, and regulatory capital requirements.</FONT></TD></TR>
<TR vAlign=bottom>
<TD vAlign=top align=left width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD vAlign=top align=left width="1%"><FONT face=serif size=1>(c)</FONT></TD>
<TD vAlign=top align=left width="1%"></TD>
<TD style="TEXT-ALIGN: justify" vAlign=top align=left width="98%"><FONT face=serif size=1>Net finance revenue represents cardmember lending finance revenue less cardmember lending interest expense.</FONT></TD></TR></TABLE> <P align=right><FONT
face=serif size=1>57</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW <BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY </FONT></P> <P align=justify><B><FONT face=serif size=1>RESULTS OF OPERATIONS
FOR THE THREE YEARS ENDED DECEMBER 31, 2007 <BR></FONT></B><FONT face=serif size=2>International Card Services reported segment income of $291 million for 2007, a $52 million or 15 percent decrease from $343 million in 2006, which increased $37
million or 12 percent from 2005. </FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Revenues Net of Interest Expense</STRONG> <BR></FONT><FONT face=serif size=2>In 2007, International Card Services&#146; revenues net of interest expense
increased $366 million or 9 percent to $4.3 billion due to higher discount revenue, net card fees and other and increased cardmember lending finance revenue, partially offset by higher interest expense. Discount revenue, net card fees, and other
revenues increased $298 million or 9 percent to $3.7 billion in 2007, driven primarily by the higher level of card spending and an increase in other revenues, partially offset by card-related fees, the reclassification of certain card-related
acquisition costs as discussed previously and the impact of the sales of card-related activities in Brazil, Malaysia, and Indonesia during 2006. The 14 percent increase in billed business in 2007 reflected a 17 percent increase in average spending
per proprietary basic card and a 3 percent increase in total cards-in-force. Assuming no changes in foreign currency exchange rates from 2006 to 2007 and excluding the impact of the sales in Brazil, Malaysia, and Indonesia, billed business and
average&nbsp;</FONT><FONT face=serif size=2>spending per proprietary basic card-in-force increased 8 percent and 7 percent, respectively, in 2007&nbsp;and all International Card Services&#146; major geographic regions experienced high
single-digit&nbsp;or low double-digit billed business&nbsp;growth. Cardmember lending finance revenue rose $226 million or 20 percent to $1.4 billion in 2007, primarily due to 12 percent growth in the average cardmember lending balances and a higher
portfolio yield. Cardmember lending interest expense and charge card and other interest expense of $493 million and $251 million in 2007, respectively, rose $100 million or 25 percent and $58 million or 30 percent, respectively, as compared to a
year ago, due to higher debt funding levels in support of growth in loan and receivable balances, and higher effective costs of funds. Revenues net of interest expense of $4.0 billion in 2006 were $245 million or 7 percent higher than 2005 as a
result of increased discount revenue, net card fees, and other revenues and higher cardmember lending finance revenue, partially offset by higher interest expense.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Expenses</STRONG> <BR>
</FONT><FONT face=serif size=2>During 2007, International Card Services&#146; expenses increased $601 million or 21 percent to $3.4 billion, due to higher marketing, promotion, rewards and cardmember services costs and increased human resources and
other operating expenses.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>Expenses in 2007 and 2006 included $16 million and $32 million, respectively, of reengineering costs primarily related to the international payments
business. Expenses in 2006 of $2.8 billion were slightly higher than 2005 primarily due to higher marketing, promotion, rewards and cardmember services costs, offset by lower human resources and other operating
expenses.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Marketing, promotion, rewards and cardmember services expenses of $1.6 billion increased $457 million or 41 percent in 2007, due to higher Membership Rewards liability
resulting from enhancements to the method of liability estimation, greater volume-related rewards costs, and higher marketing and promotion and business building costs.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>Marketing,
promotion, rewards and cardmember services expenses in 2006 reflected a $56 million charge associated with certain adjustments made to the Membership Rewards reserve model outside the United States. Human resources and&nbsp;other
operating&nbsp;expenses increased $144 million or 9 percent to $1.8 billion in 2007 and reflected gains of $114 million during 2006 related to the sales of the Company&#146;s card-related activities in Brazil, Malaysia, and Indonesia, which were
reported as a reduction to human resources and other operating expenses, partially offset by the previously mentioned reclassification of certain card acquisition related costs effective July 1, 2006.</FONT></P> <P align=justify><FONT face=serif
size=2><STRONG>Provisions for Losses</STRONG><BR></FONT><FONT face=serif size=2>Provisions for losses decreased $40 million or 5 percent to $812 million in 2007 compared to 2006, primarily due to lower write-off and past due rates and lower
provisions related to Taiwan, partially offset by higher volumes and lending balances. Provisions for losses increased $223 million or 35 percent to $852 million in 2006 compared to 2005, primarily due to strong volume and loan growth, and a higher
level of charge offs primarily related to industry-wide credit issues in Taiwan. </FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Income Taxes</STRONG><BR></FONT><FONT face=serif size=2>The effective tax rate was negative 149 percent in
2007 versus negative 10 percent in 2006 and negative 3 percent in 2005.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>International Card Services includes a tax benefit, which is likely to continue, since the Company&#146;s
internal tax allocation process provides this segment with the consolidated benefit related to its ongoing funding activities outside the United States. The effective tax rate in 2007 also reflected several favorable items primarily related to the
resolution of prior years&#146; tax returns and settlements with tax authorities.</FONT></P> <P align=justify><FONT face=serif size=1>58</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><B><FONT face=serif size=2>GLOBAL COMMERICAL
SERVICES</FONT></B></P> <P align=justify><B><FONT face=serif size=1>SELECTED INCOME STATEMENT DATA </FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="100%" colSpan=10><FONT face=serif size=1>Years Ended December 31,</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><I><FONT face=serif size=1>(Millions)</FONT></I> </TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2006</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2005</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Revenues</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2>Discount revenue, net card fees</FONT><FONT size=3> </FONT>and other</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>4,747</FONT></B> </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>4,269</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>4,013</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Interest expense</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Charge card and other</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>478</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>369</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>294</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Revenues net of interest expense</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>4,269</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,900</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,719</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><FONT face=serif size=2>Expenses</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Marketing, promotion, rewards </FONT><FONT face=serif size=2>and cardmember services</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>387</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>307</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>251</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Human resources and other </FONT><FONT face=serif size=2>operating expenses</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>2,975</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>2,764</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>2,694</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>3,362</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,071</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2,945</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><FONT face=serif size=2>Provisions for losses</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>163</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>113</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>180</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Pretax segment income</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>744</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>716</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>594</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><FONT face=serif size=2>Income tax provision</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>208</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>239</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>165</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Segment income</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>536</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>477</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>429</FONT> </TD></TR></TABLE><BR> <P align=justify><B><FONT face=serif size=1>SELECTED STATISTICAL INFORMATION </FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="98%" colSpan=10><FONT size=1>Years Ended December 31,</FONT>&nbsp;&nbsp;</TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><I><FONT face=serif size=1>(Billions, except percentages and where indicated)</FONT></I> </TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2006</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face=serif size=2>2005</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Card billed business</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>122.1</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>106.9</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>92.0</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=2>Total cards-in-force </FONT><I><FONT face=serif size=2>(millions)</FONT></I> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>6.8</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>6.7</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>6.4</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Basic cards-in-force </FONT><I><FONT face=serif size=2>(millions)</FONT></I> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>6.8</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>6.7</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>6.4</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=2>Average basic cardmember spending </FONT><I><FONT face=serif size=2>(dollars)</FONT></I> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>18,017</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>16,264</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>14,746</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Global Corporate Travel:</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Travel sales</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>20.5</FONT></B> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>18.5</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>18.0</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Travel commissions and</FONT> <FONT face=serif size=2>fees/sales</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>7.7</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>%</STRONG></FONT><FONT size=3> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>8.1</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>%<FONT style="BACKGROUND-COLOR: #c0c0c0" size=3> </FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>8.5</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=2>Total segment assets</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>21.1</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>18.9</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>15.2</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Segment capital </FONT><I><FONT face=serif size=2>(millions)</FONT></I><SUP><FONT face=serif size=2>(a)</FONT></SUP> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,239</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,907</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>1,665</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><FONT face=serif size=2>Return on segment capital</FONT><SUP><FONT face=serif size=2>(b)</FONT></SUP> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>25.3</FONT></B> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2><FONT size=3><FONT size=2><STRONG>%</STRONG></FONT><FONT size=3> </FONT></FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>25.7</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>%<FONT size=3> </FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>27.9</FONT> </TD>
<TD noWrap align=left width="1%"><FONT size=2>%</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Cardmember receivables:</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total receivables</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>11.4</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>10.3</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>9.0</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>90 days past due as a % of total</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>2.1</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>%</STRONG><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3> </FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1.9</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>%<FONT style="BACKGROUND-COLOR: #c0c0c0" size=3> </FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>1.9</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="84%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2>Net loss ratio as a % of</FONT><FONT size=3> </FONT>charge volume</FONT>
</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>0.10</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2><STRONG>%</STRONG><FONT size=3> </FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>0.09</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>%<FONT size=3> </FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>0.13</FONT> </TD>
<TD style="BORDER-BOTTOM: #ffffff 1.5pt solid" noWrap align=left width="1%"><FONT size=2>%</FONT> </TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)</FONT></TD>
<TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp; </TD>
<TD vAlign=top width="100%"><FONT face=serif size=1>Segment capital includes an allocation attributable to goodwill of $771 million, $740 million, and $631 million as of the years ended December 31, 2007, 2006, and 2005,
respectively.</FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(b)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD vAlign=top width="100%"><FONT face=serif size=1>Computed on a trailing 12-month basis using segment income and equity capital allocated to segments based upon specific business operational needs, risk measures, and regulatory capital
requirements.</FONT></TD></TR></TABLE> <P align=justify><B><FONT face=serif size=1>RESULTS OF OPERATIONS FOR THE THREE YEARS ENDED DECEMBER 31, 2007<BR></FONT></B><FONT face=serif size=2>Global Commercial Services reported segment income of $536
million for 2007, a $59 million or 12 percent increase from $477 million in 2006, which increased $48 million or 11 percent from 2005. </FONT></P> <P align=justify><FONT face=serif size=2><B>Revenues Net of Interest Expense</B> <BR></FONT><FONT
face=serif size=2>In 2007, Global Commercial Services&#146; revenues net of interest expense increased $369 million or 9 percent to $4.3 billion due to increased discount revenue, net card fees, and other, partially offset by higher interest
expense. Discount revenue, net card fees, and other revenues increased $478 million or 11 percent to $4.8 billion in 2007 driven primarily by the higher level of card spending, an increase in other commissions and fees, greater travel revenues, and
increased other revenues. The 14 percent increase in billed business in 2007 reflected an 11 percent increase in average spending per proprietary basic card and a 1 percent increase in total cards-in-force. Assuming no changes in foreign currency
exchange rates from 2006 to 2007 and excluding the impact of the sales of Brazil, Malaysia, and Indonesia, billed business and average spending per proprietary basic card increased 12 percent and 7 percent, respectively, in 2007 and volume growth
within the United States of 10 percent compared to double digit growth within the Company&#146;s other </FONT><FONT face=serif size=2>major geographic regions ranging from mid to high teens.</FONT><B><FONT face=serif size=2> </FONT></B><FONT
face=serif size=2>Charge card and other interest expense increased $109 million or 30 percent to $478 million in 2007 due to higher debt funding levels in support of growth in receivable balances, and higher effective costs of funds. Revenues net of
interest expense of $3.9 billion in 2006 were $181 million or 5 percent higher than 2005 as a result of increased discount revenue, net card fees, and other revenues offset by higher interest expense.</FONT></P> <P align=justify><FONT face=serif
size=2><B>Expenses</B> <BR></FONT><FONT face=serif size=2>During 2007, Global Commercial Services&#146; expenses increased $291 million or 9 percent to $3.4 billion, due to higher human resources and other operating expenses and increased marketing,
promotion, rewards and cardmember services. Expenses in 2007 and 2006 included $25 million and $58 million, respectively, of reengineering costs primarily in the business travel business. Expenses in 2006 of $3.1 billion were $126 million or 4
percent higher than 2005 primarily due to greater human resources and other operating expenses and higher marketing, promotion, rewards and cardmember services expenses.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Marketing,
promotion, rewards and cardmember services increased $80 million or 26 percent to $387 million primarily reflecting higher Membership Rewards liability resulting from enhancements to the method of liability estimation, partially offset by the
adjustments made to the Membership Rewards reserve models a year ago.</FONT></P> <P align=right><FONT face=serif size=1>59</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW <BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY </FONT></P> <P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif
size=2>Human resources and other operating expenses of $3.0 billion increased $211 million or 8 percent in 2007 due to higher human resources in part due to the acquisition of Harbor Payments Inc. on December 31, 2006 and the acquisition of a travel
services business in 2007, increased other operating expenses, which reflected a $38 million gain during 2006 related to the sale of the Company&#146;s card-related activities in Brazil, Malaysia, and Indonesia, and was reported as a reduction to
human resources and other operating expenses, and higher occupancy and equipment expenses. These items were partially offset by the previously discussed pension-related gain of $19 million during 2007 and reclassification of certain card acquisition
related costs effective July 1, 2006.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Provisions for Losses</STRONG><BR></FONT><FONT face=serif size=2>Provisions for losses increased $50 million or 44 percent to $163 million in 2007
compared to 2006, due to higher volumes and loss rates. Provisions for losses decreased $67 million or 37 percent to $113 million in 2006 compared to 2005 due to lower loss rates.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Income
Taxes</STRONG><BR></FONT><FONT face=serif size=2>The effective tax rate was 28 percent in 2007 versus 33 percent in 2006 and 28 percent in 2005. The effective tax rate in 2007 </FONT><FONT face=serif size=2>reflected $18 million of tax benefits
previously discussed.<BR></FONT><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The effective tax rate was higher in 2006 as compared to 2005 primarily due to tax benefits realized in 2005 from the resolution of IRS audits
of previous years&#146; tax returns.</FONT></P> <P align=justify><B><FONT face=serif size=2>GLOBAL NETWORK &amp; MERCHANT SERVICES </FONT></B></P> <P align=justify><B><FONT face=serif size=1>SELECTED INCOME STATEMENT DATA </FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="99%" colSpan=12><FONT face=serif size=1>Years Ended December 31,</FONT>&nbsp; &nbsp; &nbsp; &nbsp; </TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="82%"><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp; </TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD noWrap align=right width="1%">&nbsp; </TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2006</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp; </TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2005</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Revenues</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="82%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Discount revenue, fees and other</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>3,550</FONT></B> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>3,063</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>2,681</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Interest expense</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="82%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Cardmember lending</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>(126</FONT></B> </TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(98</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(66</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="82%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Other</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(188</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(183</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(145</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="82%"><FONT face=serif size=2>Revenues net of interest expense</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>3,864</FONT></B> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>3,344</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>2,892</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Expenses</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="82%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Marketing and promotion</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>595</FONT></B> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>518</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>604</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="82%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Human resources and other</FONT>&nbsp;<FONT face=serif size=2>operating expenses</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,665</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,549</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,340</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="82%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Total</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>2,260</FONT></B> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>2,067</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>1,944</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Provisions for losses</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>44</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>89</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>66</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="82%"><FONT face=serif size=2>Pretax segment income</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>1,560</FONT></B> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>1,188</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>882</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Income tax provision</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>538</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>409</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>309</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="82%"><FONT face=serif size=2>Segment income</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>1,022</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>779</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>573</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR></TABLE><BR> <P align=justify><B><FONT face=serif size=1>SELECTED STATISTICAL INFORMATION</FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="98%" colSpan=10><FONT face=serif size=1>Years Ended December 31,</FONT>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><FONT face=serif size=1><EM>(Billions, except percentages</EM><FONT size=3>&nbsp;</FONT><EM>and where indicated)</EM></FONT>&nbsp; </TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2>&nbsp; <B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2>&nbsp; <FONT face=serif size=2>2006</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2>&nbsp; <FONT face=serif size=2>2005</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Global Card billed business</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>647.3</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>561.5</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>484.4</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#ffffff><FONT size=2>Global Network &amp; </FONT><FONT face=serif size=2>Merchant Services:</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
<TD noWrap align=left width="3%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
<TD noWrap align=left width="3%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
<TD noWrap align=left width="2%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total segment assets</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>6.5</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>4.4</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>4.5</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Segment capital</FONT><SUP><FONT face=serif size=2>(b)</FONT></SUP>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><B><FONT face=serif size=2>$</FONT></B>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#ffffff><B><FONT face=serif size=2>1.2</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>$</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>1.3</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>$</FONT>&nbsp; </TD>
<TD noWrap align=right width="2%" bgColor=#ffffff><FONT face=serif size=2>1.3</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Return on segment capital</FONT><SUP><FONT face=serif size=2>(c)</FONT></SUP>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>90.7</STRONG><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3> </FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>%</STRONG></FONT><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>60.3</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>%<FONT style="BACKGROUND-COLOR: #c0c0c0" size=3> </FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>49.2</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#ffffff><FONT face=serif size=2>Global Network Services</FONT><SUP><FONT face=serif size=2>(d)</FONT></SUP><FONT face=serif size=2>:</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
<TD noWrap align=left width="3%" bgColor=#ffffff>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
<TD noWrap align=left width="3%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
<TD noWrap align=left width="2%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Card billed business</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>52.9</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>35.4</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>24.0</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="84%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total cards-in-force </FONT><I><FONT face=serif size=2>(millions)</FONT></I><SUP><FONT face=serif
size=2>(e)</FONT></SUP>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#ffffff><B><FONT face=serif size=2>20.3</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>15.0</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#ffffff><FONT face=serif size=2>10.8</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)</FONT></TD>
<TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp; </TD>
<TD vAlign=top width="100%"><FONT face=serif size=1>Global Card billed business includes activities (including cash advances) related to proprietary cards, cards issued under network partnership agreements, and certain insurance fees charged on
proprietary cards.</FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(b)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD vAlign=top width="100%"><FONT face=serif size=1>Segment capital includes an allocation to goodwill of $27 million as of the years ended December 31, 2007 and 2006, respectively, and $104 million as of the year ended December 31,
2005.</FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(c)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD vAlign=top width="100%"><FONT face=serif size=1>Computed on a trailing 12-month basis using segment income and equity capital allocated to segments based upon specific business operational needs, risk measures, and regulatory capital
requirements.</FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(d)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD vAlign=top width="100%"><FONT face=serif size=1>Billed business and cards-in-force reflect the transfer, effective January 1, 2006, to Global Commercial Services segment of corporate card accounts in certain emerging markets that had been
managed within Global Network Services.</FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(e)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD vAlign=top width="100%"><FONT face=serif size=1>Cards-in-force for 2006 reflect the transfer of 1.3 million proprietary cards-in-force in Brazil, and approximately 200,000 proprietary cards-in-force in Malaysia and Indonesia, from the
International Card Services and the Global Commercial Services segments during the second quarter of 2006 and the third quarter of 2006, respectively.</FONT></TD></TR></TABLE> <P align=justify><B><FONT face=serif size=1>RESULTS OF OPERATIONS FOR THE
THREE YEARS ENDED DECEMBER 31, 2007<BR></FONT></B><FONT face=serif size=2>Global Network &amp; Merchant Services reported segment income of $1.0 billion in 2007, a $243 million or 31 percent increase from $779 million in 2006, which increased $206
million or 36 percent from 2005. </FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Revenues Net of Interest Expense</STRONG> <BR></FONT><FONT face=serif size=2>Global Network &amp; Merchant Services&#146; revenues net of interest expense
increased $520 million or 16 percent and $452 million or 16 percent to $3.9 billion and $3.3 billion in 2007 and 2006, respectively, due to increased discount revenue, fees and other revenues. These increases reflected growth in merchant-related
revenues, primarily generated from the increases in global card billed business of 15 percent and 16 percent in 2007 and 2006, respectively, higher Global Network Services-related revenues, and the completion of independent operator agreements in
Brazil, Malaysia, and Indonesia in 2006.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Expenses</STRONG> <BR></FONT><FONT face=serif size=2>During 2007, Global Network &amp; Merchant Services&#146; expenses increased $193 million or 9
percent to $2.3 billion due to increased human resources and other operating expenses and</FONT></P> <P align=justify><FONT face=serif size=1>60</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><FONT face=serif size=2>higher marketing and
promotion expenses. Expenses in 2007 and 2006 included $6 million and $8 million of reengineering costs, respectively, primarily related to international establishment services. Expenses in 2006 of $2.1 billion were $123 million or 6 percent higher
than 2005, primarily due to higher human resources and other operating expenses, offset by a decrease in marketing and promotion expenses.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Marketing and promotion expenses increased $77
million or 15 percent in 2007 to $595 million, reflecting an increase in brand, merchant, and partner-related advertising costs.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>Marketing and promotion expenses decreased 14
percent in 2006 to $518 million, reflecting a reduction in brand-related advertising costs.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Human resources and other operating expenses of $1.7 billion in 2007 increased $116 million
or 7 percent, reflecting higher human resources and volume-related expenses, partially offset by the $5 million pension-related gain discussed previously. Human resources and other operating expenses also reflect the $27 million gain related to the
sale of the Company&#146;s merchant-related activities in Russia and the 2006 adjustment of the amortization of an intangible asset relating to an overseas joint venture, partially offset by the $25 million gain in 2006 related to the sale of the
Company&#146;s merchant-related activities in Brazil. </FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Provisions for Losses</STRONG><BR></FONT><FONT face=serif size=2>Provisions for losses in 2007 of $44 million decreased $45 million or
51 percent due to a reduction in merchant-related reserves, primarily related to airlines. Provisions for losses in 2006 were 35 percent higher than 2005 due to higher merchant-related provisions. </FONT></P> <P align=justify><FONT face=serif
size=2><STRONG>Income Taxes</STRONG><BR></FONT><FONT face=serif size=2>The effective tax rate was 34 percent in 2007 and 2006 and 35 percent in 2005. The 2007 effective tax rate reflected $22 million of the tax benefits previously
discussed.</FONT></P> <P align=justify><B><FONT face=serif size=1>CORPORATE &amp; OTHER<BR></FONT></B><FONT face=serif size=2>Corporate &amp; Other had net income of $376 million and net expense of $140 million in 2007 and 2006, respectively, and
net income of $17 million in 2005. Net income in 2007 reflected the $700 million after-tax gain resulting from the initial $1.13 billion due March 31, 2008, from Visa as part of the litigation settlement. This was partially offset by a $46 million
after-tax litigation related charge, a $57 million after-tax charge related to the reclassification of the AEIDC investment portfolio from Available-for-Sale to the Trading investment category as a result of the related AEB sale agreement&#146;s
impact on the holding period for these investments and the sale of certain AEIDC securities, and a $31 million after-tax charge for the contribution to the American Express Charitable Fund. The net expenses in 2007 and 2006 included $4 million
after-tax and $20 million after-tax, respectively, of reengineering costs.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>Net expenses in 2006 also included the $42 million after-tax </FONT><FONT face=serif size=2>gain related
to the rebalancing of the Travelers Cheque and Gift Card investment portfolio previously discussed. Net income in 2005 reflected the $73 million after-tax benefit from the September 11, 2001-related insurance claims.</FONT></P> <P
align=justify><B><FONT face=serif size=1>EXPOSURE TO AIRLINE INDUSTRY <BR></FONT></B><FONT face=serif size=2>Many industry analysts and some carriers have indicated that there could be significant consolidation in the airline industry in 2008,
particularly in the United States. The Company would not expect consolidation to have any significant effect on its merchant relationships with the airlines. However, airlines are also some of the most important and valuable partners in the
Company&#146;s Membership Rewards program. If a participating airline merged with an airline that did not participate in Membership Rewards, the combined airline would have to determine whether or not to continue participation. Similarly, if one of
the Company&#146;s co-brand airline partners merged with an airline that had a competing co-brand card, the combined airline would have to determine which co-brand cards it would offer. If a surviving airline determined to withdraw from Membership
Rewards or to cease offering an American Express co-brand card, the Company&#146;s business could be adversely affected. The Company has multiple co-brand relationships and rewards partners. The Company&#146;s largest airline co-brand partner is
Delta Air Lines (Delta). American Express&#146; Delta SkyMiles</FONT><FONT face=serif size=1> </FONT><FONT face=serif size=2>Credit Card co-brand portfolio accounts for approximately 5 percent of the Company&#146;s worldwide billed business and less
than 15 percent of worldwide cardmember lending receivables.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Historically, the Company has not experienced significant revenue declines when a particular airline scales back or ceases
operations due to a bankruptcy or other financial challenges. This is because volumes generated by that airline are typically shifted to other participants in the industry that accept the Company&#146;s card products. Nonetheless, the Company is
exposed to business and credit risk in the airline industry primarily through business arrangements where the Company has remitted payment to the airline for a cardmember purchase of tickets that have not yet been used or &#147;flown.&#148; In the
event that the cardmember is not able to use the ticket and the Company, based on the facts and circumstances, credits the cardmember for the unused ticket, a potential credit exposure is created for the Company. This credit exposure is disclosed in
Note 13 to the Consolidated Financial Statements. Historically, even for an airline that is operating under bankruptcy protection, this type of exposure has not generated any significant losses for the Company. The Company&#146;s goal in these
distressed situations is to hold sufficient cash over time to ensure that upon liquidation, the cash held is equivalent to the credit exposure related to any unused tickets.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>As
part of Delta&#146;s decision to file for protection under Chapter 11 of the Bankruptcy Code during 2005, the Company lent funds to Delta as part of Delta&#146;s post-petition,</FONT></P> <P align=right><FONT face=serif size=1>61</FONT></P> <HR
align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW <BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY </FONT></P> <P align=justify><FONT face=serif size=2>debtor-in-possession
financing under the Bankruptcy Code. At December 31, 2006, the remaining principal balance under this facility was $176 million. Delta received final approval for its reorganization plan and emerged from bankruptcy on April 30, 2007, and repaid the
entire principal and interest outstanding at that time.</FONT></P> <P align=justify><B><FONT face=serif size=2>OTHER REPORTING MATTERS </FONT></B></P> <P align=justify><B><FONT face=serif size=1>ACCOUNTING DEVELOPMENTS <BR></FONT></B><FONT
face=serif size=2>See the Recently Issued Accounting Standards section of Note 1 to the Consolidated Financial Statements.</FONT></P> <P align=justify><B><FONT face=serif size=1>GLOSSARY OF SELECTED TERMINOLOGY </FONT></B></P> <P
align=justify><I><FONT face=serif size=2>Asset securitizations</FONT></I><FONT face=serif size=2> &#151; Asset securitization involves the transfer and sale of receivables or loans to a special purpose entity created for the securitization activity,
typically a trust. The trust, in turn, issues securities, commonly referred to as asset-backed securities, that are secured by the transferred receivables or loans. The trust uses the proceeds from the sale of such securities to pay the purchase
price for the underlying receivables or loans. </FONT></P> <P align=justify><I><FONT face=serif size=2>Average discount rate </FONT></I><FONT face=serif size=2>&#151; This calculation is designed to approximate merchant pricing. It represents the
percentage of billed business (both proprietary and Global Network Services) retained by the Company from merchants it acquires, prior to </FONT><FONT face=serif size=2>payments to third parties unrelated to merchant acceptance.</FONT></P> <P
align=justify><I><FONT face=serif size=2>Basic cards-in-force</FONT></I><FONT face=serif size=2> &#151; Proprietary basic consumer cards-in-force includes basic cards issued to the primary account owner and does not include additional supplemental
cards issued on that account. Proprietary basic small business and corporate cards-in-force include basic and supplemental cards issued to employee cardmembers. Non-proprietary basic cards-in-force includes all cards that are issued and outstanding
under network partnership agreements. </FONT></P> <P align=justify><I><FONT face=serif size=2>Billed business</FONT></I><FONT face=serif size=2> &#151; Represents the dollar amount of charges on all American Express cards; also referred to as spend
or charge volume. Proprietary billed business includes charges made on the Company&#146;s proprietary cards-in-force, cash advances on proprietary cards and certain insurance fees charged on proprietary cards. Non-proprietary billed business
represents the charges through the Company&#146;s global network on cards issued by the Company&#146;s network partners. </FONT></P> <P align=justify><I><FONT face=serif size=2>Card acquisition</FONT></I><FONT face=serif size=2> &#151; Primarily
represents the issuance of new cards to either new or existing cardmembers through marketing and promotion efforts.</FONT></P> <P align=justify><I><FONT face=serif size=2>Cardmember </FONT></I><FONT face=serif size=2>&#151; The individual holder of
an issued American Express branded charge or credit card. </FONT></P> <P align=justify><I><FONT face=serif size=2>Cardmember lending finance revenue </FONT></I><FONT face=serif size=2>&#151; Represents the revenue earned on outstanding cardmember
loans. Cardmember lending finance charges are assessed using the average daily balance </FONT><FONT face=serif size=2>method. They are recognized based upon the principal amount outstanding in accordance with the terms of the applicable account
agreement until the outstanding balance is paid or written-off. </FONT></P> <P align=justify><I><FONT face=serif size=2>Cardmember loans</FONT></I><FONT face=serif size=2> &#151; Represents the outstanding amount due from cardmembers for charges
made on their American Express credit cards, as well as any interest charges and card-related fees. Cardmember loans also include balances with extended payment terms on certain charge card products. </FONT></P> <P align=justify><I><FONT face=serif
size=2>Cardmember receivables</FONT></I><FONT face=serif size=2> &#151; Represents the outstanding amount due from cardmembers for charges made on their American Express charge cards as well as any card-related fees. </FONT></P> <P
align=justify><I><FONT face=serif size=2>Charge cards</FONT></I><FONT face=serif size=2> &#151; Represents cards that carry no pre-set spending limits and are primarily designed as a method of payment and not as a means of financing purchases.
Cardmembers generally must pay the full amount billed each month. No finance charges are assessed on charge cards. </FONT></P> <P align=justify><I><FONT face=serif size=2>Credit cards</FONT></I><FONT face=serif size=2> &#151; Represents cards that
have a range of revolving payment terms, grace periods, and rate and fee structures. </FONT></P> <P align=justify><I><FONT face=serif size=2>Discount revenue </FONT></I><FONT face=serif size=2>&#151; Represents revenue earned from fees charged to
merchants with whom the Company has entered into a card acceptance agreement for processing cardmember transactions. The discount fee generally is deducted from the Company&#146;s payment reimbursing the merchant for cardmember purchases. Such
amounts are reduced by contra-revenue such as payments to third-party card issuing partners, cash-back reward costs, and corporate incentive payments.</FONT></P> <P align=justify><I><FONT face=serif size=2>Interest-only strip</FONT></I><FONT
face=serif size=2> &#151; Interest-only strips are generated from U.S. Card Services&#146; securitization activity and are a form of retained interest held by the Company in the securitization. This financial instrument represents the present value
of estimated future &#147;excess spread&#148; expected to be generated by the securitized assets over the estimated life of those assets. Excess spread is the net positive cash flow from interest and fee collections allocated to the third-party
investors&#146; interests in the securitization after deducting the interest paid on the investor certificates, credit losses, contractual servicing fees, and other expenses. </FONT></P> <P align=justify><I><FONT face=serif size=2>Merchant
acquisition</FONT></I><FONT face=serif size=2> &#151; Represents the signing of merchants to accept American Express-branded charge and credit cards.</FONT></P> <P align=justify><I><FONT face=serif size=2>Net card fees</FONT></I><FONT face=serif
size=2> &#151; Represents the card membership fees earned during the period. These fees are recognized as revenue over the covered card membership period (typically one year), net of provision for projected refunds for cancellation of card
membership. Beginning prospectively as of July 1, 2006, certain card acquisition-related costs were reclassified from other, net expenses to a reduction in net card fees over the membership period covered by the card fee. </FONT></P> <P
align=justify><FONT face=serif size=1>62</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><I><FONT face=serif size=2>Net loss
ratio</FONT></I><FONT face=serif size=2> &#151; Represents the ratio of charge card write-offs consisting of principal (resulting from authorized and unauthorized transactions) and fee components, less recoveries, on cardmember receivables expressed
as a percentage of gross amounts billed to cardmembers. </FONT></P> <P align=justify><I><FONT face=serif size=2>Net write-off rate</FONT></I><FONT face=serif size=2> &#151; Represents the amount of cardmember loans written off consisting of
principal (resulting from authorized transactions), interest, and fee components, less recoveries, as a percentage of the average loan balance during the period. </FONT></P> <P align=justify><I><FONT face=serif size=2>Return on average
equity</FONT></I><FONT face=serif size=2> &#151; Computed on a trailing 12-month basis using total shareholders&#146; equity as included in the Consolidated Financial Statements prepared in accordance with GAAP. </FONT></P> <P align=justify><I><FONT
face=serif size=2>Return on segment capital </FONT></I><FONT face=serif size=2>&#151; Computed on a trailing 12-month basis using segment income and equity capital allocated to segments based upon specific business operational needs, risk measures,
and regulatory capital requirements. </FONT></P> <P align=justify><I><FONT face=serif size=2>Securitization income, net</FONT></I><FONT face=serif size=2> &#151; Includes non-credit provision components of the net gains from securitization
activities; changes in fair value of the interest-only strip; excess spread related to securitized cardmember loans; and servicing income, net of related discounts or fees. Excess spread, which is recognized as earned, is the net positive cash flow
from interest and fee collections allocated to the third-party investors&#146; interests in the securitization after deducting the interest paid on the investor certificates, credit losses, contractual servicing fees, and other expenses.</FONT></P>
<P align=justify><I><FONT face=serif size=2>Stored value and prepaid products</FONT></I><FONT face=serif size=2> &#151; Include Travelers Cheques and other prepaid products such as gift cheques and cards as well as reloadable Travelers Cheque cards.
These products are sold as safe and convenient alternatives to currency for purchasing goods and services. </FONT></P> <P align=justify><I><FONT face=serif size=2>Total cards-in-force</FONT></I><FONT face=serif size=2> &#151; Represents the number
of cards that are issued and outstanding. Total consumer cards-in-force includes basic cards issued to the primary account owner and any supplemental cards, which represent additional cards issued on that account. Total small business and corporate
cards-in-force include basic cards issued to employee cardmembers. Proprietary cards-in-force represent card products where the Company owns the cardmember relationship including card issuance, billing and credit management and strategic plans such
as marketing, promotion, and development of card products and offerings. Proprietary cards-in-force include co-brand and affinity cards. For non-proprietary cards-in-force (except for certain independent operator network partnership agreements), the
Company maintains the responsibility to acquire and service merchants that accept the Company&#146;s cards and the cardmember relationship is owned by the Company&#146;s network partners that issue the cards. </FONT></P> <P align=justify><I><FONT
face=serif size=2>Travel sales &#151; </FONT></I><FONT face=serif size=2>Represents the total dollar amount of travel transaction volume for airline, hotel, car rental, and other travel arrangements made for consumers and corporate clients. The
Company earns revenue on these transactions by charging a transaction or management fee. </FONT></P> <P align=justify><B><FONT face=serif size=1>FORWARD-LOOKING STATEMENTS <BR></FONT></B><FONT face=serif size=2>This report includes forward-looking
statements, which are subject to risks and uncertainties. The forward-looking statements, which address the Company&#146;s expected business and financial performance, among other matters, contain words such as &#147;believe,&#148;
&#147;expect,&#148; &#147;anticipate,&#148; &#147;optimistic,&#148; &#147;intend,&#148; &#147;plan,&#148; &#147;aim,&#148; &#147;will,&#148; &#147;may,&#148; &#147;should,&#148; &#147;could,&#148; &#147;would,&#148; &#147;likely,&#148; and similar
expressions. 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.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: consumer and
business spending on the Company&#146;s credit and charge card products and Travelers Cheques and other prepaid products and growth in card lending balances, which depend in part on the economic environment, and the ability to issue new and enhanced
card and prepaid </FONT><FONT face=serif size=2>products, services and rewards programs, and increase revenues from such products, attract new Cardmembers, reduce Cardmember attrition, capture a greater share of existing Cardmembers&#146; spending,
and sustain premium discount rates on its card products in light of regulatory and market pressures, increase merchant coverage, retain Cardmembers after low introductory lending rates have expired, and expand the Global Network Services business;
the Company&#146;s ability to manage credit risk related to consumer debt, business loans, merchants and other credit trends, which will depend in part on the economic environment, the rates of bankruptcies and unemployment, which can affect
spending on card products, debt payments by individual and corporate customers and businesses that accept the Company&#146;s card products, and on the effectiveness of the Company&#146;s credit models; fluctuations in interest rates (including
fluctuations in benchmarks, such as LIBOR and other benchmark rates, used to price loans and other indebtedness, as well as credit spreads in the pricing of loans and other indebtedness), which impact the Company&#146;s borrowing costs, return on
lending products and the value of the Company&#146;s investments; the Company&#146;s ability to meet its ROE target range of 33 to 36 percent on average and over time, which will depend in part on factors such as the Company&#146;s ability to
generate sufficient revenue growth and achieve sufficient margins, fluctuations in the capital required to support its businesses, the mix of the Company&#146;s financings, and fluctuations in the level of the Company&#146;s shareholders&#146;
equity </FONT></P> <P align=right><FONT face=serif size=1>63</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>2007 FINANCIAL REVIEW <BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY </FONT></P> <P align=justify><FONT face=serif size=2>due to share repurchases,
dividends, changes in accumulated other comprehensive income and accounting changes, among other things; the actual amount to be spent by the Company on marketing, promotion, rewards and Cardmember services based on management&#146;s assessment of
competitive opportunities and other factors affecting its judgment; the ability to control and manage operating, infrastructure, advertising and promotion expenses as business expands or changes, including the ability to accurately estimate the
provision for the cost of the Membership Rewards program; fluctuations in foreign currency exchange rates; the Company&#146;s ability to grow its business and meet or exceed its return on shareholders&#146; equity target by reinvesting approximately
35 percent of annually-generated capital, and returning approximately 65 percent of such capital to shareholders, over time, which will depend on the Company&#146;s ability to manage its capital needs and the effect of business mix, acquisitions and
rating agency requirements; the success of the Global Network Services business in partnering with banks in the United States, which will depend in part on the extent to which such business further enhances the Company&#146;s brand, allows the
Company to leverage its significant processing scale, expands merchant coverage of the network, provides Global Network Services&#146; bank partners in the United States the benefits of greater Cardmember loyalty and higher spend per</FONT><FONT
face=serif size=1> </FONT><FONT face=serif size=2>customer,</FONT><FONT face=serif size=1> </FONT><FONT face=serif size=2>and merchant benefits such as greater transaction volume and additional higher spending customers; trends in travel and
entertainment spending and the overall level of consumer confidence; the costs and integration of acquisitions; the underlying assumptions and expectations related to the sale of the American Express Bank Ltd. businesses proving to be inaccurate or
unrealized, including, among other things, the likelihood of and expected timing for completion of the transaction, the proceeds to be received by the Company in the transaction and the transaction&#146;s impact on the Company&#146;s earnings; the
success, timeliness and financial impact (including costs, cost savings and other benefits including increased revenues), and beneficial effect on the Company&#146;s operating expense to revenue ratio, both in the short-term and over time, of
reengineering initiatives being implemented or considered by the Company, including cost management, structural </FONT><FONT face=serif size=2>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 Company&#146;s ability to reinvest the benefits arising from such reengineering actions in its businesses; bankruptcies, restructurings, consolidations or similar events affecting the airline or any other industry
representing a significant portion of the Company&#146;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; 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; a downturn in the
Company&#146;s businesses and/or negative changes in the Company&#146;s and its subsidiaries&#146; credit ratings, which could result in contingent payments under contracts, decreased liquidity and higher borrowing costs; accuracy of estimates for
the fair value of the assets in the Company&#146;s investment portfolio and, in particular, those investments that are not readily marketable, including the valuation of the interest-only strip relating to the Company&#146;s lending securitizations;
the Company&#146;s ability to invest in technology advances across all areas of its business to stay on the leading edge of technologies applicable to the payments industry; the Company&#146;s ability to protect its intellectual property rights (IP)
and avoid infringing the IP of other parties; the potential negative effect on the Company&#146;s businesses and infrastructure, including information technology, of terrorist attacks, natural disasters or other catastrophic events in the future;
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; accounting changes; outcomes and costs associated with litigation and compliance and regulatory matters; and competitive pressures in all of the Company&#146;s major businesses. See also &#147;Risk Factors&#148; in the Company&#146;s
2007 Form 10-K filed with the SEC.</FONT></P> <P align=justify><FONT face=serif size=1>64</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p>
<A NAME="b"></A><P align=center><FONT face=serif size=2>MANAGEMENT&#146;S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><FONT face=serif>MANAGEMENT&#146;S
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING </FONT></P> <P align=justify><FONT face=serif size=2>The management of American Express Company (the Company) is responsible for establishing and maintaining adequate internal control over
financial reporting.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company&#146;s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles in the United States of America, and includes those policies and procedures that: </FONT></P> <UL
style="TEXT-ALIGN: justify"> <LI><FONT face=serif size=2>Pertain to the maintenance of records that, in reasonable</FONT> <FONT face=serif size=2>detail, accurately and fairly reflect the transactions and</FONT> <FONT face=serif size=2>dispositions
of the assets of the Company;<BR>&nbsp;</FONT> <LI><FONT face=serif size=2>Provide reasonable assurance that transactions are recorded</FONT> <FONT face=serif size=2>as necessary to permit preparation of financial statements in</FONT> <FONT
face=serif size=2>accordance with generally accepted accounting principles,</FONT> <FONT face=serif size=2>and that receipts and expenditures of the Company are being</FONT> <FONT face=serif size=2>made only in accordance with authorizations of
management</FONT> <FONT face=serif size=2>and directors of the Company; and<BR>&nbsp;</FONT> <LI><FONT face=serif size=2>Provide reasonable assurance regarding prevention or timely</FONT> <FONT face=serif size=2>detection of unauthorized
acquisition, use or disposition of</FONT> <FONT face=serif size=2>the Company&#146;s assets that could have a material effect on the</FONT> <FONT face=serif size=2>financial statements.</FONT></LI></UL> <P align=justify><FONT face=serif
size=2>Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company&#146;s management assessed the
effectiveness of the Company&#146;s internal control over financial reporting as of December 31, 2007. In making this assessment, the Company&#146;s management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO) in </FONT><I><FONT face=serif size=2>Internal Control &#151; Integrated Framework.</FONT></I><FONT face=serif size=2>&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Based on management&#146;s assessment and
those criteria, we conclude that, as of December 31, 2007, the Company&#146;s internal control over financial reporting is effective.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>PricewaterhouseCoopers LLP, the
Company&#146;s independent registered public accounting firm, has issued an audit report appearing on the following page on the effectiveness of the Company&#146;s internal control over financial reporting as of December 31, 2007.</FONT></P> <P
align=right><FONT face=serif size=1>65</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p>
<A NAME="c"></A><P align=center><FONT face=serif size=2>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><FONT face=serif>REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM </FONT></P> <P align=justify><B><FONT face=serif size=1>THE BOARD OF DIRECTORS AND SHAREHOLDERS OF AMERICAN EXPRESS COMPANY: <BR></FONT></B><FONT face=serif size=2>In our opinion, the accompanying consolidated balance sheets
and the related consolidated statements of income, of cash flows and of shareholders&#146; equity present fairly, in all material respects, the financial position of American Express Company and its subsidiaries at December 31, 2007 and 2006, and
the results of their operations and their cash flows for each of the three years in the period ended December 31, 2007 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company
maintained, in all material respects, effective internal control over financial reporting as of December 31, 2007, based on criteria established in </FONT><I><FONT face=serif size=2>Internal Control - Integrated Framework </FONT></I><FONT face=serif
size=2>issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company&#146;s management is responsible for these financial statements, for maintaining effective internal control over financial reporting and for
its assessment of the effectiveness of internal control over financial reporting, included in Management&#146;s Report on Internal Control Over Financial Reporting appearing on page 65. Our responsibility is to express opinions on these financial
statements and on the Company&#146;s internal control over financial reporting based on our integrated audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material
respects.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over
financial reporting, assessing the risk that a material weakness exists, and </FONT><FONT face=serif size=2>testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included
performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>A company&#146;s internal
control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles. A company&#146;s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the company&#146;s assets that could have a material effect on the financial statements.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Because of its inherent limitations, internal control over financial reporting
may not prevent or detect misstatements.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because
of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.<BR>&nbsp;</FONT></P>
<img src="g66665americanexpress_10k4x9.jpg" width="245" height="31"> <BR> <P align=justify><FONT face=serif size=2>New York, New York</FONT></P> <P align=justify><FONT face=serif size=2>February 25, 2008</FONT></P> <P align=justify><FONT face=serif
size=1>66</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p>
<A NAME="d"></A><P align=center><FONT face=serif size=2>INDEX TO CONSOLIDATED FINANCIAL STATEMENTS<BR><FONT size=1>AMERICAN EXPRESS COMPANY</FONT></FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD noWrap align=left width="96%" bgColor=#c0c0c0><B><FONT face=serif size=2>CONSOLIDATED FINANCIAL STATEMENTS</FONT></B>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><STRONG>PAGE</STRONG></FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="96%"><FONT face=serif size=2>Consolidated Statements of Income &#150; For the Years Ended December 31, 2007, 2006, and 2005</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>68</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="96%" bgColor=#c0c0c0><FONT face=serif size=2>Consolidated Balance Sheets &#150; December 31, 2007 and 2006</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>69</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="96%"><FONT face=serif size=2>Consolidated Statements of Cash Flows &#150; For the Years Ended December 31, 2007, 2006, and 2005</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>70</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="96%" bgColor=#c0c0c0><FONT face=serif size=2>Consolidated Statements of Stockholders&#146; Equity &#150; For the Years Ended December 31, 2007, 2006, and 2005</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>71</FONT> </TD></TR>
<TR>
<TD width="99%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="96%" bgColor=#c0c0c0><B><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</FONT></B>&nbsp; </TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="96%"><FONT face=serif size=2>Note 1 &#150; Summary of Significant Accounting Policies</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>72</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="96%" bgColor=#c0c0c0><FONT face=serif size=2>Note 2 &#150; Discontinued Operations</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>80</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="96%"><FONT face=serif size=2>Note 3 &#150; Accounts Receivable</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>81</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="96%" bgColor=#c0c0c0><FONT face=serif size=2>Note 4 &#150; Investments</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>81</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="96%"><FONT face=serif size=2>Note 5 &#150; Loans</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>84</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="96%" bgColor=#c0c0c0><FONT face=serif size=2>Note 6 &#150; Asset Securitizations</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>85</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="96%"><FONT face=serif size=2>Note 7 &#150; Changes in Accumulated Other Comprehensive Income (Loss)</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>88</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="96%" bgColor=#c0c0c0><FONT face=serif size=2>Note 8 &#150; Other Assets</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>90</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="96%"><FONT face=serif size=2>Note 9 &#150; Short- and Long-Term Debt and Borrowing Agreements</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>91</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="96%" bgColor=#c0c0c0><FONT face=serif size=2>Note 10 &#150; Other Liabilities</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>93</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="96%"><FONT face=serif size=2>Note 11 &#150; Common and Preferred Shares</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>93</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="96%" bgColor=#c0c0c0><FONT face=serif size=2>Note 12 &#150; Derivatives and Hedging Activities</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>94</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="96%"><FONT face=serif size=2>Note 13 &#150; Guarantees</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>95</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="96%" bgColor=#c0c0c0><FONT face=serif size=2>Note 14 &#150; Commitments and Contingencies</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>96</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="96%"><FONT face=serif size=2>Note 15 &#150; Fair Values of Financial Instruments</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>97</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="96%" bgColor=#c0c0c0><FONT face=serif size=2>Note 16 &#150; Significant Credit Concentrations</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>98</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="96%"><FONT face=serif size=2>Note 17 &#150; Stock Plans</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>99</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="96%" bgColor=#c0c0c0><FONT face=serif size=2>Note 18 &#150; Retirement Plans</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>101</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="96%"><FONT face=serif size=2>Note 19 &#150; Income Taxes</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>106</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="96%" bgColor=#c0c0c0><FONT face=serif size=2>Note 20 &#150; Earnings Per Common Share (EPS)</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>108</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="96%"><FONT face=serif size=2>Note 21 &#150; Reportable Operating Segments and Geographic Operations</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>108</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="96%" bgColor=#c0c0c0><FONT face=serif size=2>Note 22 &#150; Quarterly Financial Data (Unaudited)</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>111</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="96%"><FONT face=serif size=2>Note 23 &#150; Restructuring Charges</FONT>&nbsp; </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>111</FONT> </TD></TR></TABLE><BR> <P align=right><FONT face=serif size=1>67</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p>
<A NAME="e"></A><P align=center><FONT face=serif size=2>CONSOLIDATED STATEMENTS OF INCOME<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><FONT face=serif size=1>Years Ended December 31, </FONT><I><FONT face=serif size=1>(Millions, except per share amounts)</FONT></I> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2006</FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2005</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><B><FONT face=serif size=2>Revenues</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%">&nbsp; &nbsp;&nbsp; <FONT face=serif size=2>Discount revenue</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>14,596</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>12,978</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>11,489</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net card fees</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,050</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,994</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2,033</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Travel commissions and fees</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>1,926</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>1,778</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>1,780</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Other commissions and fees</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,417</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2,233</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2,106</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Securitization income, net</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>1,507</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>1,489</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>1,260</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Other</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,645</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,689</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,317</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Total</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>24,141</FONT></B> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>22,161</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>19,985</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Interest income</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Cardmember lending finance revenue</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>6,145</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>4,586</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>3,379</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Other</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,271</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,147</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,040</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Total</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>7,416</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>5,733</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>4,419</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Total revenues</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>31,557</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>27,894</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>24,404</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=2>Interest expense</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Cardmember lending</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,734</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,192</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>847</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Charge card and other</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>2,092</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>1,548</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>1,132</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Total</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>3,826</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2,740</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,979</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><FONT face=serif size=2>Revenues net of interest expense</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>27,731</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>25,154</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>22,425</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><B><FONT face=serif size=2>Expenses</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Marketing, promotion, rewards and cardmember services</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>7,817</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>6,504</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>5,823</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Human resources</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>5,438</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>5,040</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>4,745</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Professional services</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>2,283</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>2,269</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>1,986</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Occupancy and equipment</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,436</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,384</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,318</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Communications</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>461</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>434</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>439</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Other, net</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>389</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,358</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,303</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Total</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>17,824</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>16,989</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>15,614</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Provisions for losses and benefits</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Charge card</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>1,140</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>935</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>1,038</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Cardmember lending</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,761</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,623</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,349</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Other (including investment certificates)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>440</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>468</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>371</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Total</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>4,341</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,026</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2,758</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=2>Pretax income from continuing operations</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>5,566</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>5,139</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>4,053</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Income tax provision</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,518</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,528</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>991</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=2>Income from continuing operations</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>4,048</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>3,611</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>3,062</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>(Loss) Income from discontinued operations, net of tax</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(36</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>96</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>672</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><FONT face=serif size=2>Net income</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>4,012</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>3,707</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>3,734</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><B><FONT face=serif size=2>Earnings per Common Share &#151; Basic:</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Income from continuing operations</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>3.45</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>2.98</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>2.48</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>(Loss) Income from discontinued operations</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(0.03</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.08</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.55</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net income</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>3.42</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>3.06</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>3.03</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><B><FONT face=serif size=2>Earnings per Common Share &#151; Diluted:</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Income from continuing operations</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>3.39</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>2.92</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>2.43</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>(Loss) Income from discontinued operations</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(0.03</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.07</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.54</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net income</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>3.36</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>2.99</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>2.97</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Average common shares outstanding for earnings per common share:</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Basic</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>1,173</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>1,212</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>1,233</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Diluted</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,196</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,238</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,258</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=1>See Notes to Consolidated Financial Statements.</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%">&nbsp; </TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=1>68</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>CONSOLIDATED BALANCE SHEETS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%"><FONT face=serif size=2><FONT size=1>December 31, <I>(Millions, except share data)</I></FONT></FONT><I><FONT face=serif size=2></FONT></I></TD>

<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2006</FONT></TD>
<TD noWrap align=right width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0><B><FONT face=serif size=2>Assets</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Cash and cash equivalents</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>11,737</FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>5,306</FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Accounts receivable</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Cardmember receivables, less reserves: 2007, $1,149; 2006, $981</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>38,923</FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>36,386</FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Other receivables, less reserves: 2007, $36; 2006, $35</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>3,082</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2,279</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Investments</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>15,864</FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>17,954</FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Loans</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Cardmember lending, less reserves: 2007, $1,831; 2006, $1,171</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>52,674</FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>42,135</FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Other, less reserves: 2007, $45; 2006, $36</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>762</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>981</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Land, buildings and equipment &#151; at cost, less accumulated depreciation:</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>2007, $3,453; 2006, $2,980</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,692</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2,350</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Other assets</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>7,349</FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>6,526</FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Assets of discontinued operations</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>16,747</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>14,412</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%"><FONT face=serif size=2>Total assets</FONT>&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>149,830</FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>128,329</FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0><B><FONT face=serif size=2>Liabilities and Shareholders&#146; Equity</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Customers&#146; deposits</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>15,397</FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>12,010</FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Travelers Cheques outstanding</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>7,197</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>7,215</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Accounts payable</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>7,674</FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>8,676</FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Investment certificate reserves</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>5,299</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>6,058</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Short-term debt</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>17,762</FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>15,236</FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Long-term debt</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>55,285</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>42,747</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Other liabilities</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>13,959</FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>11,931</FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Liabilities of discontinued operations</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>16,228</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>13,945</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Total liabilities</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>138,801</FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>117,818</FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0><B><FONT face=serif size=2>Shareholders&#146; Equity</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Common shares, $.20 par value, authorized 3.6 billion shares; issued and outstanding</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>1,158 million shares in 2007 and 1,199 million shares in 2006</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>232</FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>240</FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Additional paid-in capital</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>10,164</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>9,638</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Retained earnings</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>1,075</FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>1,153</FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Accumulated other comprehensive (loss) income</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net unrealized securities gains, net of tax: 2007, $(6); 2006, $(61)</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>12</FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>92</FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net unrealized derivatives (losses) gains, net of tax: 2007, $40; 2006, $(16)</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(71</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>27</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Foreign currency translation adjustments, net of tax: 2007, $7; 2006, $22</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>(255</FONT></B></TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(222</FONT></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net unrealized pension and other postretirement benefit costs, net of tax:
2007, $56; 2006, $210</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(128</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(417</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Total accumulated other comprehensive loss</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>(442</FONT></B></TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(520</FONT></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Total shareholders&#146; equity</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>11,029</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>10,511</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="88%"><FONT face=serif size=2>Total liabilities and shareholders&#146; equity</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>149,830</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>128,329</FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%"><FONT face=serif size=1>See Notes to Consolidated Financial Statements.</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR></TABLE><BR> <P align=right><FONT face=serif size=2><FONT size=1>69</FONT></FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>CONSOLIDATED STATEMENTS OF CASH FLOWS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><FONT face=serif size=1>Years Ended December 31, <EM>(Millions)</EM></FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>2006</FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>2005</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><B><FONT face=serif size=2>Cash Flows from Operating Activities</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=2>Net income</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>4,012</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>3,707</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>3,734</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Loss (Income) from discontinued operations, net of tax</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>36</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(96</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(672</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=2>Income from continuing operations</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>4,048</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>3,611</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>3,062</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Adjustments to reconcile income from continuing operations to net cash provided by operating</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp; &nbsp;&nbsp; <FONT face=serif size=2>activities</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Provisions for losses and benefits</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>4,527</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>3,021</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>2,771</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Depreciation and amortization</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>648</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>608</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>567</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Deferred taxes, acquisition costs and other</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>(738</FONT></B> </TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(378</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(266</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Stock-based compensation</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>276</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>275</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>232</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Accounts receivable</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(912</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(296</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(682</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Other operating assets</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>(139</FONT></B> </TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(511</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>533</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Accounts payable and other liabilities</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,005</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2,507</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,190</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>(Decrease) increase in Travelers Cheques outstanding</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>(22</FONT></B> </TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>47</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(79</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net cash (used in) provided by operating activities attributable to
discontinued operations</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(209</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>121</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>717</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><FONT face=serif size=2>Net cash provided by operating activities</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>8,484</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>9,005</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>8,045</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><B><FONT face=serif size=2>Cash Flows from Investing Activities</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=2>Sale of investments</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>4,901</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>5,416</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>3,374</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Maturity and redemption of investments</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>7,100</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>11,067</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>6,479</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=2>Purchase of investments</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>(10,332</FONT></B> </TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(15,850</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(10,539</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Net increase in cardmember loans/receivables</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(18,903</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(15,096</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(13,012</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=2>Proceeds from cardmember loan securitizations</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>5,909</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>3,491</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>5,386</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Maturities of cardmember loan securitizations</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(3,500</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(4,435</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(4,463</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=2>Loan operations and principal collections, net</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>25</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>107</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>100</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Purchase of land, buildings and equipment</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(938</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(832</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(584</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=2>Sale of land, buildings and equipment</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>55</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>78</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>239</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>(Acquisitions) dispositions, net of cash sold/acquired</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(124</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>779</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(136</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=2>Cash spun-off to Ameriprise</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>&#151;</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(3,678</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Net cash (used in) provided by investing activities attributable to discontinued operations</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(1,287</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>70</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(427</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><FONT face=serif size=2>Net cash used in investing activities</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>(17,094</FONT></B> </TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(15,205</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(17,261</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><B><FONT face=serif size=2>Cash Flows from Financing Activities</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=2>Net change in customers&#146; deposits</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>3,361</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(1,876</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>4,309</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Sale of investment certificates</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>3,427</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>4,670</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>5,728</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=2>Redemption of investment certificates</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>(4,219</FONT></B> </TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(5,554</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(4,296</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Net increase (decrease) in debt with maturities of three months or less</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>5,338</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(3,054</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(345</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=2>Issuance of debt</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>27,353</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>29,339</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>14,195</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Principal payments on debt</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(18,390</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(14,741</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(14,280</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=2>Issuance of American Express common shares and other</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>852</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>1,203</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>1,129</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Repurchase of American Express common shares</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(3,572</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(4,093</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(1,853</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=2>Dividends paid</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>(712</FONT></B> </TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(661</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(597</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Net cash provided by financing activities attributable to discontinued operations</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,028</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,345</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2,473</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><FONT face=serif size=2>Net cash provided by financing activities</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>15,466</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>6,578</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>6,463</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Effect of exchange rate changes on cash</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>166</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>264</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(10</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=2>Net increase (decrease) in cash and cash equivalents</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>7,022</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>642</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(2,763</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Cash and cash equivalents at beginning of year includes cash of discontinued</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>operations: 2007, $2,940; 2006, $1,464; 2005, $2,728</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>8,246</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>7,604</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>10,367</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=2>Cash and cash equivalents at end of year includes cash of discontinued</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="84%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>operations: 2007, $3,531; 2006, $2,940; 2005, $1,464</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>15,268</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>8,246</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>7,604</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=1>See Notes to Consolidated Financial Statements.</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=1>70</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="75%"><FONT size=1>&nbsp; </FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%"><FONT size=1>&nbsp; </FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%"><FONT size=1>&nbsp; </FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%"><FONT size=1>&nbsp; </FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="3%" colSpan=2>&nbsp; <FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>Accumulated</FONT> </FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%"><FONT size=1>&nbsp;&nbsp; </FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%"><FONT size=1>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"><FONT size=1>&nbsp; </FONT></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"><FONT size=1>&nbsp; </FONT></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>Additional</FONT> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=1>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%" colSpan=2><FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>Other</FONT> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=1>&nbsp; </FONT></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%"><FONT size=1>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"><FONT size=1>&nbsp; </FONT></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>Common</FONT> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=1>&nbsp; </FONT></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>Paid-in</FONT> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=1>&nbsp; </FONT></TD>
<TD noWrap align=right width="3%" colSpan=2><FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>Comprehensive</FONT> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=1>&nbsp; </FONT></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>Retained</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="75%"><FONT size=1><FONT face=serif size=1>Three Years Ended December 31, 2007 </FONT><I><FONT face=serif size=1>(Millions, except per share amounts)</FONT></I></FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2>&nbsp; <FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>Total</FONT> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=1>&nbsp; </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2>&nbsp; <FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>Shares</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=1>&nbsp; </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2>&nbsp; <FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>Capital</FONT> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=1>&nbsp; </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2>&nbsp; <FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>Income/(Loss)</FONT> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=1>&nbsp; </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2>&nbsp; <FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>Earnings</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%" bgColor=#c0c0c0><B><FONT face=serif size=2>Balances at December 31, 2004</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>16,020</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>250</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>7,316</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>258</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>8,196</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Comprehensive income</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net income</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,734</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>3,734</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Change in net unrealized securities gains</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(607</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>(607</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Change in net unrealized derivatives gains</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>275</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>275</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Foreign currency translation adjustments</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(81</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>(81</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Minimum pension liability adjustment</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(2</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>(2</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Total comprehensive income</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>3,319</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Spin-off of Ameriprise</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(7,746</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>18</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(7,764</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Repurchase of common shares</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(1,853</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>(7</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(209</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>(1,637</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Other changes, primarily employee plans</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,405</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>5</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,545</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(145</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Cash dividends declared</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="75%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Common, $0.48 per share</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(596</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(596</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%"><B><FONT face=serif size=2>Balances at December 31, 2005</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>10,549</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>248</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>8,652</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>(139</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>1,788</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Comprehensive income</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net income</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>3,707</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>3,707</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Change in net unrealized securities gains</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(45</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>(45</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Change in net unrealized derivatives gains</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(116</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>(116</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Foreign currency translation adjustments</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>178</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>178</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Minimum pension liability adjustment</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(2</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>(2</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Total comprehensive income</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,722</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Adjustment to initially apply SFAS No. 158, net of tax</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(396</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>(396</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Repurchase of common shares</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(4,093</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(15</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(534</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(3,544</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Acquisition of Harbor Payments, Inc.</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>147</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>147</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Other changes, primarily employee plans</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,274</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>7</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,373</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(106</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Cash dividends declared</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="75%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Common, $0.57 per share</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(692</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(692</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%"><B><FONT face=serif size=2>Balances at December 31, 2006</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>10,511</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>240</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>9,638</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>(520</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>1,153</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Comprehensive income</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net income</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2><STRONG>4,012</STRONG></FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2><STRONG>4,012</STRONG></FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Change in net unrealized securities gains</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>(80</STRONG></FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>)</STRONG></FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>(80</STRONG></FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>)</STRONG></FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Change in net unrealized derivatives (losses) gains</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2><STRONG>(98</STRONG></FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2><STRONG>)</STRONG></FONT> </TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2><STRONG>(98</STRONG></FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2><STRONG>)</STRONG></FONT> </TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Foreign currency translation adjustments</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>(33</STRONG></FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>)</STRONG></FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>(33</STRONG></FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>)</STRONG></FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net unrealized pension and other post retirement benefit</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>gains</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2><STRONG>289</STRONG></FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2><STRONG>289</STRONG></FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Total comprehensive income</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>4,090</STRONG></FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Repurchase of common shares</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2><STRONG>(3,572</STRONG></FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2><STRONG>)</STRONG></FONT> </TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2><STRONG>(12</STRONG></FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2><STRONG>)</STRONG></FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2><STRONG>(494</STRONG></FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2><STRONG>)</STRONG></FONT> </TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2><STRONG>(3,066</STRONG></FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2><STRONG>)</STRONG></FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Other changes, primarily employee plans</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>867</STRONG></FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>4</STRONG></FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>1,020</STRONG></FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>(157</STRONG></FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>)</STRONG></FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Adoption of FIN 48</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2><STRONG>(127</STRONG></FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2><STRONG>)</STRONG></FONT> </TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2><STRONG>(127</STRONG></FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2><STRONG>)</STRONG></FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Cash dividends declared</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="75%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Common, $0.63 per share</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2><STRONG>(740</STRONG></FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2><STRONG>)</STRONG></FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2><STRONG>(740</STRONG></FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2><STRONG>)</STRONG></FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="75%" bgColor=#c0c0c0><B><FONT face=serif size=2>Balances at December 31, 2007</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>11,029</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>232</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>10,164</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>(442</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,075</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="75%"><FONT face=serif size=1>See Notes to Consolidated Financial Statements.</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR></TABLE><BR> <P align=right><FONT face=serif size=1>71</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p>
<A NAME="f"></A><P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><FONT face=serif>CONSOLIDATED FINANCIAL STATEMENTS</FONT></P>
<P align=justify><B><FONT face=serif size=1><FONT size=2>NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</FONT></FONT></B></P> <P align=justify><B><FONT face=serif size=1>THE COMPANY<BR></FONT></B><FONT face=serif size=2>American Express Company
(the Company) is a leading global payments, and travel company. The Company&#146;s principal products and services are charge and credit payment card products and travel-related services offered to consumers and businesses around the world. The
Company&#146;s businesses are organized into two customer-focused groups, the Global Consumer Group and the Global Business-to-Business Group. The Global Consumer Group offers a range of products and services including charge and lending (i.e.,
credit) card products; consumer travel services; stored value products such as Travelers Cheques and prepaid products. The Business-to-Business Group offers business travel, corporate cards and other expense management products and services; network
services and merchant acquisition and merchant processing for the Company&#146;s network partners and proprietary payments businesses; and point-of-sale, back-office, and marketing products and services for merchants. </FONT><FONT face=serif
size=2>The Company&#146;s various products and services are sold globally to diverse customer groups, including consumers, small businesses, middle-market companies, and large corporations. These products and services are sold through various
channels including direct mail, on-line applications, targeted sales forces, and direct response advertising.</FONT></P> <P align=justify><B><FONT face=serif size=1>REPORTABLE OPERATING SEGMENTS<BR></FONT></B><FONT face=serif size=2>During 2007, the
Company&#146;s segments were realigned within the two major customer groups. Accordingly U.S. Card Services (USCS) and International Card Services (ICS) are aligned within the Global Consumer Group and Global Commercial Services (GCS) and Global
Network &amp; Merchant Services (GNMS) are aligned within the Global Business-to-Business Group. The Company has reclassified the prior period amounts to be consistent with the new reportable operating segments.</FONT></P> <P align=justify><B><FONT
face=serif size=1>DIVESTITURES AND ACQUISITIONS<BR></FONT></B><FONT face=serif size=2>The Company announced or completed the following divestitures during 2007, 2006, and 2005.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>AEB and
AEIDC</STRONG><BR></FONT><FONT face=serif size=2>On September 18, 2007, the Company entered into an agreement to sell its international banking subsidiary, American Express Bank Ltd. (AEB) and American Express International Deposit Company (AEIDC),
a subsidiary that issues investment certificates to AEB&#146;s customers, to Standard Chartered PLC (Standard Chartered) for the approximate value of $1.1 billion, subject to certain regulatory approvals. Standard Chartered will pay the Company an
amount equal to the net asset value </FONT><FONT face=serif size=2>of the AEB businesses that are being sold at the closing date plus $300 million. At December 31, 2007, this would have amounted to approximately $819 million. The Company also
expects to realize an additional amount representing the net asset value of AEIDC, which was also contracted to be sold to Standard Chartered 18 months after the close of the AEB sale, through a put/call agreement. As of December 31, 2007, the net
asset value of that business was $232 million. This value is expected to be realized through (1) dividends from the subsidiary to the Company and (2) a subsequent payment from Standard Chartered based on the net asset value of AEIDC on the date the
business is transferred to them.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>For 2007 and all prior periods presented, the operating results, assets and liabilities, and cash flows of AEB (except for certain components of AEB
that are not being sold) have been removed from the Corporate &amp; Other segment and reported within the discontinued operations captions in the Company&#146;s Consolidated Financial Statements. AEIDC will continue to be included in continuing
operations within the Corporate </FONT><FONT face=serif size=2>&amp; Other segment until such time as AEIDC qualifies for classification as a discontinued operation, which will occur approximately one year prior to its transfer to Standard
Chartered.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The operating results, assets and liabilities, and cash flows of AEB are presented separately in the Company&#146;s Consolidated Financial Statements. The Notes to the
Consolidated Financial Statements have been adjusted to exclude discontinued operations unless otherwise noted. Refer to Note 2 for further discussion of AEB as a discontinued operation.</FONT></P> <P align=justify><FONT face=serif
size=2><STRONG>Divestitures with GNS Network Arrangements</STRONG><BR></FONT><FONT face=serif size=2>On May 31, 2007, the Company completed the sale of its merchant-related activities in Russia to Russian Standard Bank (RSB), for approximately $27
million ($18 million after-tax) net gain in the Global Network &amp; Merchant Services segment. </FONT><FONT face=serif size=2>$23 million ($15 million after-tax) of the gain relates to the merchant-related activities sold and is reported as a
reduction to other, net expenses in the Company&#146;s continuing operations. $4 million ($3 million after-tax) of the gain relates to the issuance of the Global Network Services (GNS) license and is reported as other revenue in the Company&#146;s
continuing operations.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>During the third quarter of 2006, the Company completed the sale of its card and merchant-related activities in Malaysia to Maybank, and its card and
merchant-related activities in Indonesia to Bank Danamon for combined proceeds of $94 million. The transactions generated a gain of $33 million ($24 million after-tax), and are reported as a reduction to other, net expenses in the Company&#146;s
continuing operations ($23 million in the International Card Services segment and $10 million in the Global Commercial Services segment).<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>On June 30, 2006, the Company completed the
sale of its card and merchant-related activities and international banking activities in Brazil to Banco Bradesco S.A. (Bradesco), for</FONT></P> <P align=justify><FONT face=serif size=1>72</FONT></P> <HR align=center width="100%" noShade SIZE=2>
<PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><FONT face=serif
size=2>approximately $470 million. The transaction generated a net after-tax gain of $109 million. $144 million ($131 million after-tax) of the gain relates to the card and merchant-related activities sold and is reported as a reduction to other,
net expenses in the Company&#146;s continuing operations ($91 million in the International Card Services segment, $28 million in the Global Commercial Services segment, and $25 million in the Global Network &amp; Merchant Services segment). A $48
million ($22 million after-tax) loss related to the sale of the Company&#146;s international banking activities to Bradesco is reported in discontinued operations for banking activities the Company exited in
Brazil.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company will continue to maintain its presence in the merchant-related businesses within Russia and in the card and merchant-related businesses within Malaysia,
Indonesia, and Brazil through its Global Network Services arrangements with the acquirers and its retention of agreements with multinational merchants. </FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Ameriprise, TBS and Other
Divestitures</STRONG><BR></FONT><FONT face=serif size=2>On September 30, 2005, the Company completed the spin-off of Ameriprise Financial, Inc. (Ameriprise), previously known as American Express Financial Corporation, the Company&#146;s former
financial planning and financial services business.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>In addition, the Company completed certain dispositions including the sale of its tax, accounting, and consulting business,
American Express Tax and Business Services, Inc. (TBS). The operating results, assets and liabilities, and cash flows related to Ameriprise and certain dispositions (including TBS) have been reflected as discontinued operations in the Consolidated
Financial Statements. </FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Acquisitions and Other Transactions</STRONG><BR></FONT><FONT face=serif size=2>On September 30, 2007, the Company purchased all the outstanding common shares of AMEX
Assurance Company (AAC), a subsidiary of Ameriprise, for $115 million. During the third quarter of 2005, the Company recorded a $115 million liability related to the share purchase agreement with Ameriprise to purchase all of the shares of AAC,
within a period not to exceed two years from the spin-off date of September 30, 2005. The Company had previously consolidated AAC as a variable interest entity within the U.S. Card Services segment since the spin-off of Ameriprise and therefore
there is no impact on the Company&#146;s Consolidated Financial Statements from this 2007 acquisition.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>On December 31, 2006, the Company acquired Harbor Payments, Inc. (Harbor Payments)
for approximately $150 million, which was paid primarily in the Company&#146;s common stock. Harbor Payments is a technology provider that specializes in electronic invoice and payment capabilities. The acquisition is reflected in the Global
Commercial Services segment.</FONT></P> <P align=justify><B><FONT face=serif size=1>PRINCIPLES OF CONSOLIDATION<BR></FONT></B><FONT face=serif size=2>The Consolidated Financial Statements of the Company are prepared in conformity with U.S. generally
accepted accounting principles (GAAP). All significant intercompany transactions are eliminated.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company consolidates all voting interest entities in which the Company holds a
greater than 50 percent voting interest. Entities in which the Company&#146;s voting interest is 20 percent or more but less than 50 percent are accounted for under the equity method. All other investments are accounted for under the cost method
unless the Company determines that it exercises significant influence over an entity by means other than voting rights, in which case the entity is accounted for under the equity method.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif
size=2>The Company also consolidates any Variable Interest Entities (VIEs) for which it is considered to be the primary beneficiary. The determination of whether an entity is a VIE is based on the amount and characteristics of the entity&#146;s
equity. In general, an enterprise is required to consolidate a VIE when it has a variable interest and it is deemed to be the primary beneficiary (meaning that it will absorb a majority of the VIE&#146;s expected losses or receive a majority of the
VIE&#146;s expected residual returns). The Company&#146;s involvement with VIEs is limited, and primarily comprises investments in affordable housing partnerships and its cardmember receivables securitization
trust.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Qualifying Special Purpose Entities (QSPEs) under Statement of Financial Accounting Standards (SFAS) No. 140, &#147;Accounting for Transfers and Servicing of Financial
Assets and Extinguishments of Liabilities&#148; (SFAS No. 140), are not consolidated. The Company utilizes QSPEs in connection with cardmember lending securitizations within the U.S. Card Services
segment.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Certain reclassifications of prior period amounts have been made to conform to the current presentation. These reclassifications did not have an impact on the Company&#146;s
financial position or results of operations, and&nbsp;primarily includes those described in the Company&#146;s previously filed current reports on Form 8-K dated November 1, 2007, and March 30,
2007.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In addition, beginning prospectively as of July 1, 2006, certain card acquisition related costs were reclassified from other expenses to a reduction in net card
fees.</FONT></P> <P align=justify><B><FONT face=serif size=1>FOREIGN CURRENCY<BR></FONT></B><FONT face=serif size=2>Assets and liabilities denominated in foreign currencies are translated into U.S. dollars based upon exchange rates prevailing at the
end of each year. The resulting translation adjustments, along with any related qualifying hedge and tax effects, are included in accumulated other comprehensive (loss) income, a component of shareholders&#146; equity. Translation adjustments,
including qualifying hedge and tax effects, are</FONT></P> <P align=right><FONT face=serif size=1>73</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><FONT face=serif
size=2>reclassified to earnings upon the sale or substantial liquidation of investments in foreign operations. Revenues and expenses are translated at the average month-end exchange rates during the year. Gains and losses related to non-functional
currency transactions, including non-U.S. operations where the functional currency is the U.S. dollar, are reported net in other revenue or other, net expense, depending on the nature of the activity, in the Company&#146;s Consolidated Statements of
Income. Net non-functional currency transaction gains amounted to approximately $27 million, $11 million, and $5 million in 2007, 2006, and 2005, respectively.</FONT></P> <P align=justify><B><FONT face=serif size=1>AMOUNTS BASED ON ESTIMATES AND
ASSUMPTIONS<BR></FONT></B><FONT face=serif size=2>Accounting estimates are an integral part of the Consolidated Financial Statements. These estimates are based, in part, on management&#146;s assumptions concerning future events. Among the more
significant assumptions are those that relate to reserves for cardmember losses relating to loans and charge receivables, asset securitizations, Membership Rewards, and income taxes, as discussed below. These accounting estimates reflect the best
judgment of management, but actual results could differ. </FONT></P> <P align=justify><B><FONT face=serif size=1>REVENUES NET OF INTEREST EXPENSE<BR></FONT></B><FONT face=serif size=2>The Company generates revenue from a variety of sources including
global payments, such as charge and credit cards, travel services and investments funded by the sale of stored value products, such as Travelers Cheques. </FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Discount
Revenue</STRONG><BR></FONT><FONT face=serif size=2>The Company earns discount revenue from fees charged to merchants with which the Company has entered into card acceptance agreements for processing cardmember transactions. The discount generally is
deducted from the payment to the merchant and recorded as discount revenue at the time the charge is captured. </FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Net Card Fees</STRONG><BR></FONT><FONT face=serif size=2>Card fees are
deferred and recognized as revenue on a straight-line basis over the 12-month card membership period, net of deferred direct card acquisition costs and a reserve for projected membership cancellations. </FONT></P> <P align=justify><FONT face=serif
size=2><STRONG>Travel Commissions and Fees</STRONG><BR></FONT><FONT face=serif size=2>The Company earns customer revenue by charging a transaction or management fee for airline or other transactions. Customer-related fees and other revenues are
recognized at the time a client books travel arrangements. Travel suppliers pay commissions on airline tickets issued and on sales and transaction volumes, based on contractual agreements. These revenues are recognized at the time a ticket is
purchased. Other travel suppliers that pay commissions on hotels and car rentals generally are not under firm contractual agreements, and</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>therefore, revenue is not recognized until
cash is received. </FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Other Commissions and Fees</STRONG><BR></FONT><FONT face=serif size=2>Other commissions and fees include foreign exchange conversion fees and other card-related
assessments, which are recognized primarily in the period in which they are charged to the cardmember. Fees related to the Company&#146;s Membership Rewards program are deferred and recognized over the period covered by the fee and included in
deferred card fees and other, net of deferred acquisition costs, as discussed above.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Securitization Income, Net</STRONG><BR></FONT><FONT face=serif size=2>Securitization income, net
includes non-credit provision components of the net gains from securitization activities, excess spread related to securitized cardmember loans, changes in the fair value of the interest-only strip, and servicing income, net of related discounts or
fees. Excess spread, which is recognized as earned, is the net positive cash flow from interest and fee collections allocated to the third-party investors&#146; interests in the securitization after deducting the interest paid on the investor
certificates, credit losses, contractual servicing fees and other expenses.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Other Revenue</STRONG><BR></FONT><FONT face=serif size=2>Other revenue includes insurance premiums earned from
cardmember travel and other insurance programs, revenues arising from contracts with Global Network Services&#146; partners including royalties and signing fees, publishing revenues, and other miscellaneous revenue and fees. </FONT></P> <P
align=justify><FONT face=serif size=2><STRONG>Contra-revenue</STRONG><BR></FONT><FONT face=serif size=2>The Company regularly makes payments through contractual arrangements with merchants, Corporate Card Clients and all other customers. Payments to
any customer are classified as contra-revenue unless a specifically identifiable benefit (e.g., goods or services) is received by the Company in consideration for that payment and the fair value of such benefit is determinable and measurable. If no
such benefit is identified, then the entire payment is classified as contra-revenue, and included within revenues net of interest expense in the Consolidated Statements of Income in the line item where the related transaction revenues are recorded
(e.g., discount revenue, travel commissions and fees, and other commissions and fees). If such a benefit is identified, then the payment is classified as expense up to the estimated fair value of the benefit.</FONT></P> <P align=justify><FONT
face=serif size=2><STRONG>Interest Income</STRONG><BR></FONT><FONT face=serif size=2>Cardmember lending finance revenues are assessed using the average daily balance method for receivables owned. These amounts are recognized based upon the principal
amount outstanding in accordance with the terms of the applicable account agreement until the outstanding balance is paid or written-off. </FONT></P> <P align=justify><FONT face=serif size=1>74</FONT></P> <HR align=center width="100%" noShade
SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Other interest income primarily relates to the Company&#146;s performing fixed-income securities. Interest income is accrued as earned using the effective interest method, which
adjusts the yield for security premiums and discounts, fees and other payments, so that the related security recognizes a constant rate of return on the outstanding balance throughout its term. These amounts are recognized until these securities are
in default or when it is likely that future interest payments will not be made as scheduled.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Interest Expense</STRONG><BR></FONT><FONT face=serif size=2>Interest expense includes interest
incurred primarily to fund cardmember lending, charge card product receivables and general corporate purposes. </FONT></P> <P align=justify><B><FONT face=serif size=1>EXPENSES </FONT></B></P> <P align=justify><FONT face=serif
size=2><STRONG>Stock-based Compensation</STRONG><BR></FONT><FONT face=serif size=2>Effective July 1, 2005, the Company adopted SFAS No. 123 (revised 2004), &#147;Share-Based Payment&#148; (SFAS No. 123(R)), using the modified prospective
application. The adoption of SFAS No. 123(R) requires entities to measure and recognize the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The adoption of SFAS No.
123(R) did not materially impact the Company&#146;s Consolidated Financial Statements since the Company had been expensing share-based awards granted after January 1, 2003, under the provisions of SFAS No. 123, &#147;Accounting for Stock-Based
Compensation&#148; (SFAS No. 123). The Company recognizes the cost of these awards on a straight-line basis over their vesting periods.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>If the Company had followed the fair value
recognition provisions of SFAS 123(R) for all outstanding and unvested stock options for the period from January 1, 2005, through June 30, 2005, pro-forma stock&#150;based compensation would have increased by $9 million, net of tax, and
correspondingly pro-forma basic and diluted earnings per common share would have decreased by $0.01.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Marketing, Promotion, Rewards and Cardmember Services</STRONG><BR></FONT><FONT
face=serif size=2>These expenses include the costs of rewards programs (including Membership Rewards, discussed in the other liabilities section below), protection plans and complimentary services provided to cardmembers, and advertising costs,
which are expensed in the year in which the advertising first takes place.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Other, Net Expense</STRONG><BR></FONT><FONT face=serif size=2>Other, net expense includes general operating
expenses, gains (losses) on sale of assets or businesses not classified as discontinued operations, and litigation and insurance costs or settlements.</FONT></P> <P align=justify><B><FONT face=serif size=1>BALANCE SHEET </FONT></B></P> <P
align=justify><FONT face=serif size=2><STRONG>Cash and Cash Equivalents</STRONG><BR></FONT><FONT face=serif size=2>The Company has defined cash equivalents to include time deposits and other highly liquid investments with original maturities of 90
days or less.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Accounts Receivable</STRONG><BR></FONT><I><FONT face=serif size=2>Cardmember receivables<BR></FONT></I><FONT face=serif size=2>Cardmember receivables represent amounts due
from charge card customers. These receivables are recorded at the time a cardmember enters into a point-of-sale transaction with a merchant. Cardmember receivable balances are presented on the Consolidated Balance Sheets net of reserves for losses,
discussed below, and includes principal and any related accrued fees. </FONT></P> <P align=justify><I><FONT face=serif size=2>Reserves for losses &#151; cardmember receivables<BR></FONT></I><FONT face=serif size=2>Reserves for losses relating to
cardmember receivables represent management&#146;s best estimate of the losses inherent in the Company&#146;s outstanding portfolio of receivables. Management&#146;s evaluation process requires certain estimates and judgments. Reserves for these
losses are primarily based upon models that analyze specific portfolio statistics and reflect management&#146;s judgment regarding overall reserve adequacy. The analytic models take into account several factors, including average write-off rates for
various stages of receivable aging (i.e., current, 30 days, 60 days, 90 days) over a 24-month period and average bankruptcy and recovery rates. Management considers whether to adjust the analytic models based on other factors, such as the level of
coverage and recent trends of past-due accounts, as well as leading economic and market indicators, such as the unemployment rate, consumer confidence index, purchasing manager&#146;s index, bankruptcy filings, concentration of credit risk such as
based on tenure, industry or geographic regions, and the legal and regulatory environment.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Cardmember receivable balances are written off when management deems amounts to be
uncollectible and is generally determined by the number of days past due. Receivables in bankruptcy or owed by deceased individuals are written off upon notification, while other accounts are written off when 360 days past due. </FONT></P> <P
align=justify><FONT face=serif size=2><STRONG>Investments</STRONG><BR></FONT><FONT face=serif size=2>Investments include debt and equity securities and are classified within both the Available-for-Sale and Trading
categories.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Available-for-Sale investment securities are carried at fair value on the Consolidated Balance Sheets with unrealized gains (losses) recorded in accumulated other
comprehensive (loss) income, net of income tax provisions (benefits). Realized gains and losses on these securities are recognized in results of operations upon disposition of the securities using the </FONT></P> <P align=right><FONT face=serif
size=1>75</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><FONT face=serif
size=2>specific identification method on a trade date basis. In addition, realized losses are recognized when management determines that a decline in value is other-than-temporary, which requires judgment regarding the amount and timing of recovery.
Indicators of other-than-temporary impairment for debt securities include issuer downgrade, default, or bankruptcy. The Company also considers the extent to which cost exceeds fair value, the duration and size of that gap, management&#146;s judgment
about the issuer&#146;s current and prospective financial condition, as well as its intent and ability to hold the security until recovery of the unrealized losses.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Trading investment
securities are carried at fair value on the Consolidated Balance Sheets, and changes in fair value are recorded in results of operations.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company obtains fair value of investment
securities primarily from third party pricing vendors engaged by the Company. When available, quoted market prices are used to determine fair value. If quoted market prices are not available, fair values are estimated using pricing models, where the
inputs to those models are based on observable market inputs. The inputs to the valuation models vary by the type of security being priced but are typically benchmark yields, reported trades, broker dealer quotes, and prices of similar assets.
Pricing models generally do not entail material subjectivity because the methodologies employed use inputs observed from active markets. In limited cases observable market prices and input may not be readily available or availability may be limited
due to market conditions. Internal models may be used in these situations to determine fair value. This represents less than 0.1 percent of the Company&#146;s total assets.</FONT></P> <P align=justify><FONT face=serif
size=2><STRONG>Loans</STRONG><BR></FONT><I><FONT face=serif size=2>Cardmember lending<BR></FONT></I><FONT face=serif size=2>Cardmember loans represent amounts due from lending product customers. These loans are recorded at the time a cardmember
enters into a point-of-sale transaction with a merchant or when a charge card customer enters into an extended payment arrangement. Cardmember loans are presented on the Consolidated Balance Sheets net of reserves for cardmember losses, discussed
below, and include accrued interest receivable and fees as of the balance sheet date. The Company&#146;s policy is to cease accruing for interest receivable once a cardmember loan is more than 180 days past due.</FONT></P> <P align=justify><I><FONT
face=serif size=2>Reserve for losses &#151; cardmember lending<BR></FONT></I><FONT face=serif size=2>The Company&#146;s methodology for reserving for losses relating to cardmember loans is consistent with reserving for losses relating to cardmember
receivables, with the exception that cardmember loans (other than those in bankruptcy or owed by deceased individuals) are written off when 180 days past due.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Asset
Securitizations</STRONG><BR></FONT><FONT face=serif size=2>The Company periodically securitizes cardmember receivables and loans by transferring those financial assets to a trust. The trust then issues securities to third-party investors, and these
securities are collateralized by the transferred assets. The Company accounts for its transfers of these financial assets in accordance with SFAS No. 140.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In order for a securitization
of financial assets to be accounted for as a sale, the transferor must surrender control over those financial assets to the extent that the transferor receives consideration other than beneficial interests in the transferred
assets.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Cardmember loans are transferred to a QSPE, and such transactions are structured to meet the sales criteria. Accordingly, when loans are sold through securitizations, the
Company removes the loans from its Consolidated Balance Sheets and recognizes both a gain on sale and retained interests in the securitizations.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In contrast, cardmember receivables are
transferred to a special purpose entity, a trust that does not meet the requirements for treatment as a qualifying sale. Securitizations of cardmember receivables are accounted for as secured borrowings.</FONT></P> <P align=justify><FONT face=serif
size=2><STRONG>Land, Buildings and Equipment</STRONG><BR></FONT><I><FONT face=serif size=2>Land, buildings and equipment<BR></FONT></I><FONT face=serif size=2>Buildings and equipment, including leasehold improvements, are carried at cost less
accumulated depreciation. Costs incurred during construction are capitalized and are depreciated once an asset is placed in service. Depreciation is generally computed using the straight-line method over the estimated useful lives of assets, which
range from three to eight years for equipment. Buildings are depreciated based upon their estimated useful life at the acquisition date, which generally ranges from 40 to 60 years.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif
size=2>Leasehold improvements are depreciated using the straight-line method over the lesser of the remaining term of the leased facility or the economic life of the improvement, which ranges from five to ten years. The Company maintains operating
leases worldwide for facilities and equipment. Rent expense for facility leases is recognized ratably over the lease term, and is calculated to include adjustments for rent concessions, all non-market based rent escalations, and leasehold
improvement allowances.</FONT></P> <P align=justify><I><FONT face=serif size=2>Software development costs<BR></FONT></I><FONT face=serif size=2>The Company capitalizes certain costs associated with the acquisition or development of internal-use
software. Once the software is ready for its intended use, these costs are amortized on a straight-line basis over the software&#146;s estimated useful life, generally five years.</FONT></P> <P align=justify><FONT face=serif size=1>76</FONT></P> <HR
align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><FONT face=serif
size=2><STRONG>Goodwill and Other Intangible Assets</STRONG><BR></FONT><I><FONT face=serif size=2>Goodwill<BR></FONT></I><FONT face=serif size=2>Goodwill represents the excess of acquisition cost of an acquired company over the fair value of assets
acquired and liabilities assumed. Goodwill is included in other assets on the Consolidated Balance Sheets. The Company assigns goodwill to its reporting units for the purpose of impairment testing. A reporting unit is defined as an operating
segment, or a business one level below an operating segment. The Company evaluates goodwill for impairment annually and between annual tests if events occur or circumstances change that more likely than not reduce the fair value of reporting units
below their carrying amounts. In determining whether impairment has occurred, the Company generally uses a comparative market multiples approach for calculating fair value. </FONT></P> <P align=justify><I><FONT face=serif size=2>Intangible
assets<BR></FONT></I><FONT face=serif size=2>Intangible assets, primarily customer relationships, are amortized over their estimated useful lives of 2 to 14 years on a straight-line basis. Intangible assets are included in other assets on the
Consolidated Balance Sheets. The Company reviews intangible assets for impairment quarterly and whenever events and circumstances indicate that their carrying amounts may not be recoverable. In addition, on an annual basis, the Company performs a
complete impairment evaluation of all intangible assets based upon fair value generally using a discounted cash flow approach. An impairment is recognized if the carrying amount is not recoverable and exceeds the asset&#146;s fair value. </FONT></P>
<P align=justify><FONT face=serif size=2><STRONG>Other Liabilities</STRONG><BR></FONT><I><FONT face=serif size=2>Membership Rewards<BR></FONT></I><FONT face=serif size=2>The Membership Rewards program allows enrolled cardmembers to earn points that
can be redeemed for a broad range of rewards, including travel, entertainment, retail certificates, and merchandise. The Company establishes balance sheet reserves which represent the estimated cost of points earned to date that are ultimately
expected to be redeemed. Also, these reserves reflect management&#146;s judgment regarding overall adequacy. A weighted average cost per point redeemed during the previous 12 months is used to approximate future redemption costs and is affected by
the mix of rewards redeemed. Management uses models to estimate ultimate redemption rates based on historical redemption statistics, card product type, year of program enrollment, enrollment tenure and card spend levels.</FONT><B><FONT face=serif
size=2> </FONT></B><FONT face=serif size=2>During 2007, management enhanced the ultimate redemption rate models by incorporating more sophisticated statistical and actuarial techniques to better estimate ultimate redemption rates of points earned to
date by current cardmembers given redemption trends and projected future redemption behavior.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The provision for the cost of Membership Rewards points is included in marketing,
promotion, rewards and cardmember </FONT><FONT face=serif size=2>services and the balance sheet reserves are included in other liabilities. The Company continually evaluates its reserve methodology and assumptions based on developments in redemption
patterns, cost per point redeemed, and other factors.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Derivative Financial Instruments and Hedging Activities</STRONG><BR></FONT><FONT face=serif size=2>All derivatives are recognized on
balance sheet at fair value as either assets or liabilities. The fair value of the Company&#146;s derivative financial instruments are determined using either market quotes or valuation models that are based upon the net present value of estimated
future cash flows and incorporate current market data inputs. The Company reports its derivative assets and liabilities in other assets and other liabilities, respectively, on a net by counterparty basis where management believes it has the legal
right of offset under enforceable netting arrangements. The accounting for the change in the fair value of a derivative financial instrument depends on its intended use and the resulting hedge designation, if any, as discussed below. </FONT></P> <P
align=justify><I><FONT face=serif size=2>Cash flow hedges<BR></FONT></I><FONT face=serif size=2>A cash flow hedge is a derivative designated to hedge the exposure of variable future cash flows that is attributable to a particular risk associated
with an existing recognized asset or liability, or a forecasted transaction. For derivative financial instruments that qualify as cash flow hedges, the effective portions of the gain or loss on the derivatives are recorded in accumulated other
comprehensive (loss) income and reclassified into earnings when the hedged cash flows are recognized into earnings.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>The amount that is reclassified into earnings is presented in
the Consolidated Statements of Income with the hedged instrument or transaction impact, primarily in interest expense. Any ineffective portion of the gain or loss, as determined by the accounting requirements, is reported as a component of other,
net expense. If a hedge is de-designated or terminated prior to maturity, the amount previously recorded in accumulated other comprehensive (loss) income is recognized into earnings over the period that the hedged item impacts earnings. If a hedge
relationship is discontinued because it is probable that the forecasted transaction will not occur according to the original strategy, any related amounts previously recorded in accumulated other comprehensive (loss) income are recognized into
earnings immediately. </FONT></P> <P align=justify><I><FONT face=serif size=2>Fair value hedges<BR></FONT></I><FONT face=serif size=2>A fair value hedge is a derivative designated to hedge the exposure of future changes in the fair value of an asset
or liability, or an identified portion thereof that is attributable to a particular risk. For derivative financial instruments that qualify as fair value hedges, changes in the fair value of the derivatives, as well as of the corresponding hedged
assets and liabilities are</FONT></P> <P align=right><FONT face=serif size=1>77</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><FONT face=serif
size=2>recorded in earnings as a component of other, net expense. If a fair value hedge is de-designated or terminated prior to maturity, previous adjustments to the carrying value of the hedged item are recognized into earnings to match the
earnings pattern of the hedged item. </FONT></P> <P align=justify><I><FONT face=serif size=2>Net investment hedges in foreign operations<BR></FONT></I><FONT face=serif size=2>A net investment hedge in foreign operations is a derivative used to hedge
future changes in currency exposure of a net investment in a foreign operation. For derivative financial instruments that qualify as net investment hedges in foreign operations, the effective portions of the change in fair value of the derivatives
are recorded in accumulated other comprehensive (loss) income as part of the cumulative translation adjustment. Any ineffective portions of net investment hedges are recognized in other, net expense during the period of change. </FONT></P> <P
align=justify><I><FONT face=serif size=2>Non-designated derivatives and trading activities<BR></FONT></I><FONT face=serif size=2>For derivative financial instruments that do not qualify for hedge accounting, are not designated as hedges, changes in
fair value are reported in current period earnings generally as a component of other revenue, other, net expenses or interest expense, depending on the type of derivative instrument and the nature of the transaction. </FONT></P> <P
align=justify><I><FONT face=serif size=2>Derivative financial instruments that qualify for hedge accounting<BR></FONT></I><FONT face=serif size=2>Derivative financial instruments that are entered into for hedging purposes are designated as such when
the Company enters into the contract. For all derivative financial instruments that are designated for hedging activities, the Company formally documents all of the hedging relationships between the hedge instruments and the hedged items at the
inception of the relationships. Management also formally documents its risk management objectives and strategies for entering into the hedge transactions. The Company formally assesses, at inception and on a quarterly basis, whether derivatives
designated as hedges are highly effective in offsetting the fair value or cash flows of hedged items. These assessments usually are made through the application of statistical measures. Prior to 2006, the Company only applied the &#147;short
cut&#148; method of hedge accounting in very limited cases when this method&#146;s requirements were strictly met. Beginning in 2006, the Company discontinued using the &#147;short cut&#148; method of hedge
accounting.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In accordance with its risk management policies, the Company generally structures its hedges with very similar terms to the hedged items; therefore, when applying the
accounting requirements, the Company generally recognizes insignificant amounts of ineffectiveness through earnings. If it is determined that a derivative is not highly effective as a hedge, the Company will discontinue the application of hedge
accounting.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Income Taxes</STRONG><BR></FONT><FONT face=serif size=2>The Company, its wholly-owned U.S. subsidiaries, and certain non-U.S. subsidiaries file a consolidated federal income tax
return. The Company is subject to the income tax laws of the United States, its states and municipalities and those of the foreign jurisdictions in which the Company operates. These tax laws are complex, and the manner in which they apply to the
taxpayer&#146;s facts is sometimes open to interpretation. Given the inherent complexities of the business and that the Company is subject to taxation in a substantial number of jurisdictions, the Company must make judgments in assessing the
likelihood that a tax position will be sustained upon examination by the taxing authorities based on the technical merits of the tax position.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>The amount of benefit recognized is
based on management&#146;s best judgment of the most likely outcome resulting from examination given the facts, circumstances and information available at the reporting date. Interest and penalties relating to unrecognized tax benefits are reported
in income tax provision.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Deferred tax assets and liabilities are determined based on the differences between the GAAP financial statement and tax bases of assets and liabilities using
the enacted tax rates expected to be in effect for the years in which the differences are expected to reverse. A valuation allowance is established when management determines that it is more likely than not that all or some portion of the benefit of
the deferred tax assets will not be realized.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company does not provide for federal income taxes on foreign earnings intended to be permanently reinvested outside the United States.
</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Restricted Net Assets of Subsidiaries</STRONG><BR></FONT><FONT face=serif size=2>Certain of the Company&#146;s subsidiaries are subject to restrictions on the transfer of net assets under
debt agreements and regulatory requirements. These restrictions have not had any effect on the Company&#146;s shareholder dividend policy and management does not anticipate any impact in the future. Procedures exist to transfer net assets between
the Company and its subsidiaries, while ensuring compliance with the various contractual and regulatory constraints. At December 31, 2007, the aggregate amount of net assets of subsidiaries that may not be transferred to American Express&#146;
Parent Company (Parent Company) was approximately $7 billion (this includes restrictions on the net assets of Discontinued Operations of $1 billion).</FONT></P> <P align=justify><B><FONT face=serif size=1>RECENTLY ISSUED ACCOUNTING STANDARDS<BR>
</FONT></B><FONT face=serif size=2>The Financial Accounting Standards Board (FASB) has recently issued the following accounting standards, which are effective beginning January 1, 2008. The adoption of the accounting standards listed below will not
have a material impact on the Company&#146;s financial position or results of operations.</FONT></P> <P align=justify><FONT face=serif size=1>78</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <UL style="TEXT-ALIGN: justify"> <LI><FONT
face=serif size=2>Statement of Financial Accounting Standard (SFAS) No. 157, &#147;Fair Value Measurements&#148; (SFAS No. 157), defines fair value, establishes a framework for measuring fair value and applies broadly to financial and non-financial
assets and liabilities reported or disclosed at fair value under existing authoritative accounting pronouncements. SFAS No. 157 also establishes a multi-level hierarchy that prioritizes the inputs to the valuation techniques used to measure fair
value. In addition, SFAS No. 157 expands disclosure requirements regarding the methods and inputs used to measure fair value and the effects on earnings.</FONT></LI></UL> <P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT
face=serif size=2>On January 1, 2008, the Company adopted SFAS No. 157 for its financial assets and liabilities only. The corresponding required disclosures will be included in the Company&#146;s March 31, 2008, quarterly report on Form 10-Q.
</FONT><FONT face=serif size=2>FASB Staff Position FAS 157-2 &#147;Effective Date of FASB Statement No. 157&#148; permits for the deferred effective date of SFAS No. 157 for non-financial assets and liabilities until January 1, 2009. The Company
elected this deferral option for its non-financial assets and liabilities.</FONT></P> <UL style="TEXT-ALIGN: justify"> <LI><FONT face=serif size=2>SFAS No. 158, &#147;Employers&#146; Accounting for Defined Benefit Pension and Other Postretirement
Plans &#150; an amendment of the FASB Statements No. 87, 88, 106, and 132(R)&#148; (SFAS No. 158) requires the measurement date for the benefit obligation and plan assets to be the Company&#146;s fiscal year end for years ending after December 15,
2008. The Company currently uses a September 30 measurement date. In order to facilitate this change, the Company will use the September 30, 2007 valuation to estimate pension and other employee benefit plan cost for 2008 and will perform an
additional valuation as of December 31, 2008. The change in the measurement date will result in a one-time adjustment to retained earnings and accumulated other comprehensive income in the fourth quarter of 2008.<BR>&nbsp;</FONT> <LI><FONT
face=serif size=2>SFAS No. 159, &#147;The Fair Value Option for Financial Assets and Financial Liabilities-Including an amendment of FASB Statement No. 115&#148; (SFAS No. 159), provides companies with an option to report selected financial assets
and liabilities at fair value. SFAS No. 159 allows entities to irrevocably elect, on a contract by contract basis, fair market value as the initial and subsequent measurement for certain financial assets and financial liabilities. The Company does
not plan to elect the option to fair value any financial assets or financial liabilities under SFAS No. 159.<BR>&nbsp;</FONT> <LI><FONT face=serif size=2>Emerging Issues Task Force Issue No. 06-11, &#147;Accounting for Income Tax Benefits of
Dividends on Share-Based Payment Awards&#148; (EITF 06-11), clarifies when income tax benefits for dividends paid on employee share-based payment awards should be recognized in equity or the income statement.</FONT></LI></UL> <P align=justify><FONT
face=serif size=2>In addition to the above, the FASB has recently issued the following accounting standards, which are effective beginning January 1, 2009. The Company is currently evaluating the impact of these accounting standards.</FONT></P> <UL
style="TEXT-ALIGN: justify"> <LI><FONT face=serif size=2>SFAS No. 141 (revised 2007), &#147;Business Combinations&#148; (SFAS No. 141(R)), requires the acquiring entity in a business combination to (1) recognize all assets acquired and liabilities
assumed generally at their acquisition-date fair values; (2) record those assets and liabilities at their full fair value amounts even if there is noncontrolling (minority) interest; (3) include noncontrolling interest earnings through net income;
(4) expense acquisition-related transaction costs; and (5) disclose information needed to evaluate and understand the nature and financial effect of the business combination. SFAS No. 141(R) is effective for the Company for any acquisitions
occurring in 2009 and years thereafter.<BR>&nbsp;</FONT> <LI><FONT face=serif size=2>SFAS No. 160, &#147;Noncontrolling Interests in Consolidated Financial Statements&#148; (SFAS No. 160), which is to be retrospectively applied, requires entities to
include noncontrolling (minority) interests in partially owned consolidated subsidiaries within shareholders&#146; equity in the consolidated financial statements. SFAS No. 160 also requires the consolidating entity to include the earnings of the
consolidated subsidiary attributable to the noncontrolling interest holder in its income statement with an offsetting charge (credit) to the non-controlling interest in shareholders&#146; equity.<BR>&nbsp;</FONT> <LI><FONT face=serif size=2>EITF No.
07-1, &#147;Accounting for Collaborative Arrangements&#148; (EITF 07-1), which is to be retrospectively applied, defines collaborative arrangements as those that do not involve a separate legal entity and in which the participants are actively
involved and are exposed to significant risks and rewards that depend on the ultimate commercial success of the endeavor. EITF 07-1 also clarifies that the equity method of accounting should not be applied and requires the disclosure of the
Company&#146;s accounting policies regarding income statement characterization, the amounts and income statement classification of the arrangements and information about the nature and purpose of the arrangements.</FONT></LI></UL> <P
align=right><FONT face=serif size=1>79</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS <BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><B><FONT face=serif
size=2>NOTE 2 DISCONTINUED OPERATIONS</FONT></B></P> <P align=justify><FONT face=serif size=2>On September 18, 2007, the Company entered into an agreement to sell AEB. The transaction is expected to close in the first quarter of
2008.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Following the completion of the sale, the Company will have continuing obligations for certain on-going costs related to the remediation of regulatory and legal matters that arose
prior to the sale. Further discussion on the details of this transaction are included in Note 1.</FONT><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>On June 30, 2006, the Company completed the sale of its card and merchant-related
activities and international banking activities in Brazil for approximately $470 million. The international banking portion of the transaction generated an after-tax loss of $22 million reported in discontinued operations for banking activities the
Company exited in Brazil. These banking activities previously were reflected in the Corporate </FONT><FONT face=serif size=2>&amp; Other segment. Financial results for these operations, prior to the second quarter of 2006, were not reclassified as
discontinued operations because such results are not material. Refer to Note 1 for a discussion of the impact of the sale of the Brazilian card and merchant-related activities, which are included in continuing
operations.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>On September 30, 2005, the Company completed the distribution of Ameriprise common stock to the Company&#146;s shareholders in a tax-free transaction for U.S. federal income
tax purposes. The Ameriprise distribution was treated as a non-cash dividend to shareholders and, as such, reduced the Company&#146;s shareholders&#146; equity by $7.7 billion as of December 31, 2005.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT
face=serif size=2>Also during 2005, the Company completed certain dispositions including the sale of TBS for cash proceeds of approximately $190 million. These dispositions resulted in a net after-tax gain of approximately $63 million during the
third quarter of 2005. During 2007, the net after-tax gain was reduced by $14 million upon settlement of certain matters in accordance with the TBS purchase agreement and other adjustments.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif
size=2>The operating results, assets and liabilities, and cash flows of discontinued operations are presented separately in the Company&#146;s Consolidated Financial Statements. Summary operating results of the discontinued operations included AEB
(except for certain components of AEB that are not being sold), as further described in Note 1, as well as Ameriprise and businesses disposed of in previous years. Results from discontinued operations for the years ended December 31, were as
follows: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%"><I><FONT face=serif size=1>(Millions)</FONT></I> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2006</FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2005</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%" bgColor=#c0c0c0><FONT face=serif size=2>Revenues net of interest expense</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;<STRONG>$</STRONG></FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>759</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>770</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>6,571</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="83%"><FONT size=2>Pretax (loss) income from</FONT> <FONT face=serif size=2>discontinued operations</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>(34</FONT></B> </TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>121</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>885</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%" bgColor=#c0c0c0><FONT face=serif size=2>Income tax provision</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>2</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>25</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>213</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="83%"><FONT size=2>(Loss) Income from discontinued</FONT> <FONT face=serif size=2>operations, net of tax</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>(36</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>96</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>672</FONT> </TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>Assets and liabilities of the discontinued operations related to AEB, at
December 31, were as follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><I><FONT face=serif size=1>(Millions)</FONT></I> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2>&nbsp; <B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2>&nbsp; <FONT face=serif size=2>2006</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Assets:</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Cash and cash equivalents</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>3,531</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>2,940</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Investments</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>3,080</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,036</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Loans, net of reserves</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>8,283</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>7,319</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Other assets</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,853</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,117</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total assets</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>16,747</FONT></B> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>14,412</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Liabilities:</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Customers&#146; deposits</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>15,079</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>12,935</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Other liabilities</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,149</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,010</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total liabilities</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>16,228</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>13,945</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Net assets</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>519</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>467</FONT> </TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>Accumulated other comprehensive loss, net of tax,
associated with discontinued operations at December 31, was as follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%"><I><FONT face=serif size=1>(Millions)</FONT></I> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2006</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2>Accumulated other comprehensive loss,</FONT> <FONT face=serif size=2>net of tax:</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Net unrealized securities losses</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>(15</FONT></B> </TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(10</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Foreign currency translation adjustments</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(28</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(25</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2>Net unrealized pension and other</FONT><FONT
size=3> </FONT>postretirement benefit costs</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>2</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(2</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="88%" bgColor=#c0c0c0><FONT face=serif size=2>Total accumulated other comprehensive loss</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(41</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(37</FONT> </TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>Goodwill of approximately $27 million was included in
AEB&#146;s assets as of December 31, 2007 and 2006. </FONT></P> <P align=justify><FONT face=serif size=1>80</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS <BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><B><FONT face=serif
size=2>NOTE 3 ACCOUNTS RECEIVABLE </FONT></B></P> <P align=justify><FONT face=serif size=2>Accounts receivable at December 31 consisted of: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp; &nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2>&nbsp; <B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2>&nbsp; <FONT face=serif size=2>2006</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%" bgColor=#c0c0c0>&nbsp; &nbsp;&nbsp; <FONT face=serif size=2>USCS</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp; </FONT><STRONG>$</STRONG></FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>21,418</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp; </FONT>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>20,586</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>ICS</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp; </TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>6,616</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>6,013</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>GCS</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>11,411</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>10,297</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>GNMS</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>627</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>471</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Cardmember receivables, gross</FONT><SUP><FONT face=serif size=2>(b)</FONT></SUP>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>40,072</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>37,367</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><FONT face=serif size=2>Less: Cardmember reserve for losses</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>1,149</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>981</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Cardmember receivables, net</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp; </FONT><STRONG>$</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>38,923</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp; </FONT>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>36,386</FONT> </TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Other receivables, gross</FONT><SUP><FONT face=serif size=2>(c)</FONT></SUP>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp; </FONT><STRONG>$</STRONG></FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>3,118</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp; </FONT>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2,314</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><FONT face=serif size=2>Less: Other reserve for losses</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>36</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>35</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Other receivables, net</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp; </FONT><STRONG>$</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>3,082</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp; </FONT>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2,279</FONT> </TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)</FONT></TD>
<TD vAlign=top noWrap><FONT size=1>&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
<TD vAlign=top width="100%"><FONT face=serif size=1>Includes receivables primarily related to certain of the Company&#146;s business partners and International Currency Card portfolios.</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(b)</FONT></TD>
<TD vAlign=top noWrap><FONT size=1>&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD vAlign=top width="100%"><FONT face=serif size=1>Includes approximately $12.4 billion and $10.9 billion of cardmember receivables outside the United States as of December 31, 2007 and 2006, respectively.</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(c)</FONT></TD>
<TD vAlign=top noWrap><FONT size=1>&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD vAlign=top width="100%"><FONT face=serif size=1>Other receivables primarily represent amounts due from the Company&#146;s travel customers, third party card issuing partners, accrued interest on investments, and other receivables due to the
Company in the ordinary course of business. For 2007, other receivables also includes $1.13 billion related to the Company&#146;s litigation settlement with Visa Inc., Visa USA and Visa International (collectively Visa) which is expected to be paid
by March 31, 2008.</FONT></TD></TR></TABLE> <P align=justify><FONT face=serif size=2>The following table presents changes in the cardmember receivable reserve for losses: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="81%"><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2>&nbsp; <FONT face=serif size=2>2006</FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2>&nbsp; <FONT face=serif size=2>2005</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>Balance, January 1</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>981</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$ 942</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp; 806</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%"><FONT face=serif size=2>Additions:</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp; </TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp; </TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Cardmember receivables</FONT>&nbsp;<FONT face=serif size=2>provision</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,140</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>935</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,038</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%"><FONT face=serif size=2>Deductions:</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp; </TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp; </TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Cardmember receivables net</FONT>&nbsp;<FONT face=serif size=2>write-offs</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(907</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(810</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(820</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="81%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Cardmember receivables</FONT>&nbsp;<FONT face=serif size=2>other</FONT><SUP><FONT face=serif size=2>(b)</FONT></SUP>&nbsp;
</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>(65</FONT></B> </TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(86</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(82</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>Balance, December 31</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,149</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$ 981</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp; 942</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)</FONT></TD>
<TD vAlign=top><FONT size=1>&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
<TD vAlign=top width="100%"><FONT face=serif size=1>Represents write-offs of charge card balances consisting of principal (resulting from authorized and unauthorized transactions) and fee components, less recoveries of $203 million, $177 million,
and $159 million for 2007, 2006, and 2005, respectively.</FONT></TD></TR>
<TR>
<TD vAlign=top colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(b)</FONT></TD>
<TD vAlign=top><FONT size=1>&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
<TD vAlign=top width="100%"><FONT face=serif size=1>Primarily includes other adjustments to cardmember receivables such as waived fees.</FONT></TD></TR></TABLE> <P align=justify><B><FONT face=serif size=2>NOTE 4 INVESTMENTS </FONT></B></P> <P
align=justify><FONT face=serif size=2>The following is a summary of investments at December 31:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2006</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Available-for-Sale, at estimated fair value:</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>State and municipal obligations</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>6,761</FONT></B> </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>6,863</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>U.S. Government and agencies</FONT>&nbsp;<FONT face=serif size=2>obligations</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>5,110</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>5,075</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Mortgage and other asset-backed</FONT>&nbsp;<FONT face=serif size=2>securities</FONT><SUP><FONT face=serif size=2>(b)</FONT></SUP>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>79</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>3,051</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Corporate debt securities</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>282</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,948</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Foreign government bonds and</FONT>&nbsp;<FONT face=serif size=2>obligations</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>53</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>23</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Other</FONT><SUP><FONT face=serif size=2>(c)</FONT></SUP>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>929</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>994</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total Available-for-Sale, at estimated </FONT></FONT>fair value</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>13,214</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>17,954</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Trading, at estimated fair value</FONT><SUP><FONT face=serif size=2>(d)</FONT></SUP>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,650</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>&#151;</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%"><FONT face=serif size=2>Total</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>15,864</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>17,954</FONT> </TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)</FONT></TD>
<TD vAlign=top><FONT size=1>&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
<TD vAlign=top width="100%"><FONT face=serif size=1>U.S. Government and agencies obligations at December 31, 2007 and 2006, included $970 million and $716 million, respectively, of securities loaned out on an overnight basis to financial
institutions under the securities lending program described on page 83.</FONT></TD></TR>
<TR>
<TD vAlign=top colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(b)</FONT></TD>
<TD vAlign=top><FONT size=1>&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
<TD vAlign=top width="100%"><FONT face=serif size=1>At December 31, 2007, $79 million represents Fannie Mae securities and does not include the Company&#146;s subordinated securities tranche that is discussed on page 85.</FONT></TD></TR>
<TR>
<TD vAlign=top colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(c)</FONT></TD>
<TD vAlign=top><FONT size=1>&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
<TD vAlign=top width="100%"><FONT face=serif size=1>Consists primarily of short-term money market and state tax exempt securities (totaling $833 million and $891 million at December 31, 2007 and 2006, respectively) as well as investment of
subordinated securities from securitizations ($78 million at December 31, 2007).</FONT></TD></TR>
<TR>
<TD vAlign=top colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(d)</FONT></TD>
<TD vAlign=top><FONT size=1>&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
<TD vAlign=top width="100%"><FONT face=serif size=1>Refer to page 83 for additional discussion regarding the Trading investments.</FONT></TD></TR></TABLE> <P align=right><FONT face=serif size=1>81</FONT></P> <HR align=center width="100%" noShade
SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS <BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><B><FONT face=serif
size=1>AVAILABLE-FOR-SALE INVESTMENTS <BR></FONT></B><FONT face=serif size=2>The following is a summary of investments classified as Available-for-Sale at December 31:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="56%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="21%" colSpan=12><B><FONT face=serif size=2>2007</FONT></B>&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="20%" colSpan=12><FONT face=serif size=2>2006</FONT>&nbsp;&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="56%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Gross</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Gross</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD noWrap align=right width="4%" colSpan=2></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Gross</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Gross</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Estimated</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="56%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Unrealized</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Unrealized</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Estimated</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Unrealized</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Unrealized</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Fair</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="56%"><I><FONT face=serif size=1>(Millions)</FONT></I> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Cost</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Gains</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Losses</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Fair Value</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Cost</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Gains</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Losses</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Value</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="56%" bgColor=#c0c0c0><FONT face=serif size=2>State and municipal obligations</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>6,795</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$102</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><B><FONT face=serif size=2>$(136</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>6,761</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>6,678</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$195</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp; (10</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>6,863</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="56%"><FONT face=serif size=2>U.S. Government and agencies obligations</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>5,034</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>76</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%"><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>5,110</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>5,080</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>10</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(15</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>5,075</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="56%" bgColor=#c0c0c0><FONT face=serif size=2>Mortgage and other asset-backed securities</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>79</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><B><FONT face=serif size=2>(1</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>79</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,102</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>5</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(56</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,051</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="56%"><FONT face=serif size=2>Corporate debt securities</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>285</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>1</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="4%"><B><FONT face=serif size=2>(4</FONT></B> </TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>282</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>1,987</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>3</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(42</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>1,948</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="56%" bgColor=#c0c0c0><FONT face=serif size=2>Foreign government bonds and obligations</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>51</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>2</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>53</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>21</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>&#151;</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>23</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="56%"><FONT face=serif size=2>Other</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>929</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>929</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>993</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>2</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(1</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>994</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="56%" bgColor=#c0c0c0><FONT face=serif size=2>Total</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>13,173</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$182</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><B><FONT face=serif size=2>$(141</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>13,214</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>17,861</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$217</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$(124</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>17,954</FONT> </TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>The following tables provide information about
Available-for-Sale investments with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2007 and 2006:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="99%" colSpan=14><FONT face=serif size=1>As of December 31, 2007</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%"><I><FONT face=serif size=1>(Millions)</FONT></I> </TD>
<TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%" colSpan=5><FONT face=serif size=1>Less than 12 months</FONT> </TD>
<TD noWrap align=center width="1%">&nbsp;</TD>
<TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%" colSpan=5><FONT face=serif size=1>12 months or more</FONT> </TD>
<TD noWrap align=center width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Estimated</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Gross</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Estimated</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Gross</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Fair</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Unrealized</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Fair</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Unrealized</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="78%"><FONT face=serif size=1>Description of Securities</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Value</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Losses</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Value</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Losses</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=2>State and municipal obligations</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,680</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$(120</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$195</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$(16</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%"><FONT size=2>U.S. Government and agencies</FONT> <FONT face=serif size=2>obligations</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT size=2>Mortgage and other asset-backed</FONT> <FONT face=serif size=2>securities</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>20</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(1</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%"><FONT face=serif size=2>Corporate debt securities</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>110</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>(2</FONT></B> </TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>116</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>(2</FONT></B> </TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT size=2>Foreign government bonds and</FONT> <FONT face=serif size=2>obligations</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>20</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="78%"><FONT face=serif size=2>Other</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><STRONG><FONT size=2>&#151;</FONT></STRONG> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>10</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=2>Total</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,790</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$(122</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$361</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$(19</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1pt solid" width="99%" colSpan=14>&nbsp;</TD>
<TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="100%" colSpan=15><FONT face=serif size=1>As of December 31, 2006</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%"><I><FONT face=serif size=1>(Millions)</FONT></I> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%" colSpan=5><FONT face=serif size=1>Less than 12 months</FONT> </TD>
<TD noWrap align=center width="1%">&nbsp;</TD>
<TD noWrap align=center width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%" colSpan=5><FONT face=serif size=1>12 months or more</FONT> </TD>
<TD noWrap align=center width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Estimated</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Gross</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Estimated</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Gross</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Fair</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Unrealized</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Fair</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Unrealized</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="78%"><FONT face=serif size=1>Description of Securities</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Value</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Losses</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Value</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Losses</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=2>State and municipal obligations</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp; &nbsp;818</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$(10</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&#151;</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%"><FONT size=2>U.S. Government and agencies</FONT> <FONT face=serif size=2>obligations</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>1,520</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(3</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>1,536</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(12</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT size=2>Mortgage and other asset-backed</FONT> <FONT face=serif size=2>securities</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>229</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(1</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2,056</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(55</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%"><FONT face=serif size=2>Corporate debt securities</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>232</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(3</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>1,502</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(39</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT size=2>Foreign government bonds and</FONT> <FONT face=serif size=2>obligations</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>6</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>&#151;</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>&#151;</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>&#151;</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="78%"><FONT face=serif size=2>Other</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>&#151;</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>&#151;</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>16</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(1</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=2>Total</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$2,805</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$(17</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$5,133</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$(107</FONT> </TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>The Company reviews and evaluates investments at least
quarterly and more often as market conditions may require to identify investments that have indications of other-than-temporary impairments. The determination of other-than-temporary</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif
size=2>impairment is a subjective process, requiring the use of judgments and assumptions. Accordingly, the Company considers several factors when evaluating securities for an other-than-temporary</FONT><B><FONT face=serif size=2> </FONT></B><FONT
face=serif size=2>impairment, including the extent to which amortized cost exceeds fair value, the duration and size of that difference, and the issuer&#146;s credit rating. Key metrics in performing this evaluation are the ratio of fair value to
amortized cost and the determination of the extent to which the difference is due to increased default risk for the specific issuer or market interest rate risk, and with respect to market interest rate risk, whether the Company has the intent and
ability to hold the securities for a time sufficient to recover the unrealized losses. </FONT></P> <P align=justify><FONT face=serif size=1>82</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS <BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><FONT face=serif size=2>The
following table summarizes the unrealized losses of temporary impairments by ratio of fair value to amortized cost as of December 31, 2007:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="66%"><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="10%" colSpan=6><FONT face=serif size=1>Less than 12 months</FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="10%" colSpan=6><FONT face=serif size=1>12 months or more</FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%" colSpan=5><FONT face=serif size=1>Total</FONT> </TD>
<TD noWrap align=center width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="66%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Estimated</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Gross</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Estimated</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Gross</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Estimated</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Gross</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="66%"><FONT face=serif size=1>Ratio of Fair Value to</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Fair</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Unrealized</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Fair</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Unrealized</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Fair</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp; </TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Unrealized</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="66%"><FONT face=serif size=1>Amortized Cost</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Value</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2><FONT size=1>Losses</FONT></FONT> </TD>
<TD noWrap align=right width="1%">&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Value</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Losses</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp; </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Value</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Losses</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="66%" bgColor=#c0c0c0><FONT face=serif size=2>90%&#150;100%</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,738</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$(116</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$346</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$(16</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>3,084</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$(132</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="66%"><FONT face=serif size=2>Less than 90%</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>52</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>(6</FONT></B> </TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>15</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>(3</FONT></B> </TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>67</FONT></B> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>(9</FONT></B> </TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="66%" bgColor=#c0c0c0><FONT face=serif size=2>Total</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,790</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$(122</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$361</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$(19</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>3,151</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$(141</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B>&nbsp; </TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>The securities with a fair value to amortized
cost ratio of less than 100 percent consist primarily of state and municipal securities and do not contain a concentration of any one security.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Unrealized losses may be caused by
changes to market interest rates, which include both benchmark interest rates and credit spreads, and specific credit events associated with individual issuers. Substantially all of the gross unrealized losses on the securities are attributable to
changes in market interest rates. The Company has the ability and the intent to hold these securities for a time sufficient to recover the unrealized losses and expects that contractual principal and interest will be received on these
securities.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Supplemental information about other revenues which includes gross realized gains and losses on sales of securities, as well as other-than-temporary losses on investments
classified as Available-for-Sale, follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="82%"><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2006</FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2005</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Gains</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$ 16</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$89</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><SUP><FONT face=serif size=2>(a)</FONT></SUP> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$15</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="82%"><FONT face=serif size=2>Losses</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>(38</FONT></B></TD>
<TD noWrap align=left width="1%"><STRONG><FONT size=2>)<SUP><FONT face=serif>(b)</FONT></SUP></FONT></STRONG> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(1</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(4</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Total</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$(22</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$88</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$11</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)</FONT></TD>
<TD noWrap><FONT size=1>&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
<TD width="100%"><FONT face=serif size=1>Includes $68 million of gains related to a rebalancing program in the fourth quarter of 2006 to better align the maturity profile of the Travelers Cheque and Gift Card investment portfolio with its business
liquidity needs.</FONT></TD></TR>
<TR>
<TD width="100%" colSpan=3><FONT size=1>&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(b)</FONT></TD>
<TD noWrap><FONT size=1>&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
<TD width="100%"><FONT face=serif size=1>Primarily due to the rebalancing of AEIDC portfolio resulting from the announced sale of AEB to Standard Chartered.</FONT></TD></TR></TABLE> <P align=justify><FONT face=serif size=2>Contractual maturities of
investments classified as Available-for-Sale, excluding Mortgage and other asset-backed securities and Equity securities, follows: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="89%">&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="4%" colSpan=2>&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Estimated Fair</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Cost</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>Value</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Due in:</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%"><FONT face=serif size=2>2008</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>2,294</FONT></B> </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>$ &nbsp;2,299</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>2009&#150;2012</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>4,184</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>4,262</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%"><FONT face=serif size=2>2013&#150;2017</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>358</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>365</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>2018 and beyond</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>6,214</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>6,165</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%"><FONT face=serif size=2>Total</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>13,050</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>$13,091</FONT></B> </TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>The expected payments on mortgage and other asset-backed
securities may not coincide with their contractual maturities because borrowers have the right to call or prepay certain obligations. Accordingly, these securities, as well as equity securities, are not included in the maturities
distribution.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Under securities lending agreements, the Company lends certain investment securities on an overnight basis to financial institutions. These lending arrangements are
collateralized by an amount equal to at least 102 percent of the fair market value of the investment securities lent. Collateral received by the Company can be in the form of cash or marketable U.S. Treasury or government agency securities. The
Company may only retain or sell these securities in the event of a borrower default. The Company&#146;s loaned investment securities are classified as investments on the Consolidated Balance Sheet, but are considered restricted and pledged assets.
In accordance with U.S. generally accepted accounting principles, the marketable securities received as collateral are not recorded in the Consolidated Balance Sheet, as the Company is not permitted to sell or repledge these securities absent a
borrower default. Fees received from the securities lending transactions are recorded as interest income-other. At December 31, 2007 and 2006, approximately $970 million and $716 million, respectively, of investment securities were loaned under
these agreements.</FONT></P> <P align=justify><B><FONT face=serif size=1>TRADING INVESTMENTS<BR></FONT></B><FONT face=serif size=2>In 2007, the Company reclassified the AEIDC investment portfolio of $3.5 billion from the Available-for-Sale category
to the Trading category resulting from the AEB sale agreement&#146;s impact on the holding period of these investments.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>During 2007, the net unrealized holding loss of the Trading
securities amounted to approximately $9 million. In addition, there were $15 million in net realized losses related to the sale of approximately $775 million Trading securities in 2007. There were no Trading investments in 2006 and
2005.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The following is a summary of investments classified as Trading at December 31:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%"><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT face=serif size=2>Mortgage and other asset-backed securities</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,576</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%"><FONT face=serif size=2>Corporate debt securities</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>982</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%" bgColor=#c0c0c0><FONT face=serif size=2>Other</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>92</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="94%"><FONT face=serif size=2>Total Trading, at estimated fair value</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>2,650</FONT></B> </TD></TR></TABLE><BR> <P align=right><FONT face=serif size=1>83</FONT></P> <HR align=center width="100%" noShade SIZE=2>
<PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS <BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><B><FONT face=serif
size=1>EXPOSURE TO ASSET-BACKED SECURITIES<BR></FONT></B><FONT face=serif size=2>The Company&#146;s asset-backed holdings are classified as follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%"><FONT face=serif size=1>Classification </FONT><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Market Value</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT face=serif size=2>Trading</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;</FONT></B> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$1,576</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%"><FONT face=serif size=2>Available-for-Sale:</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%" bgColor=#c0c0c0>&nbsp; &nbsp;&nbsp; <FONT face=serif size=2>Continuing operations</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>79</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Discontinued operations</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>838</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="94%" bgColor=#c0c0c0><FONT face=serif size=2>Total asset-backed holdings</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$2,493</FONT></B> </TD></TR>
<TR>
<TD noWrap align=left width="99%" colSpan=4>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="99%" colSpan=4><FONT face=serif size=2>The following is a summary of the Company&#146;s asset-backed</FONT>&nbsp;<FONT size=2>holdings at December 31, 2007:</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%"><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Market Value</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT face=serif size=2>Mortgage-Backed Securities</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Government Sponsored Entities (GSEs)</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>$1,070</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Non-GSE</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Prime</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>258</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Alt-A</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>468</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Sub-prime</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>140</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Total Non-Agency</FONT>&nbsp;
</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>866</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%"><FONT face=serif size=2>Total mortgage-backed securities</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>1,936</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT face=serif size=2>Other asset-backed securities</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>198</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%"><FONT face=serif size=2>Commercial mortgage-backed securities</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>359</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="94%" bgColor=#c0c0c0><FONT face=serif size=2>Total asset-backed holdings</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$2,493</FONT></B> </TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>Of the securities backed by residential
mortgages, 99 percent are rated AAA and the remaining 1 percent are rated AA.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>There were no holdings rated below AA backed by residential mortgages. More than 55 percent of the
securities backed by residential mortgages, or $1.0 billion, were primarily guaranteed by three GSEs: Fannie Mae, Freddie Mac or Ginnie Mae.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>These consisted primarily of
pass-through securities in which a mortgage pool&#146;s cash flows support one class of securities.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>The remaining non-GSE securities backed by residential mortgages consisted of
securities in structured transactions, or Collateralized Mortgage Obligations (CMOs). Of these securities, 97 percent are rated AAA; the remaining 3 percent are rated AA. The $140 million of subprime mortgages represented underlying assets within
AAA-rated classes of asset-backed structures whose cash flows are given priority over other classes and thus offer greater protection from credit deterioration in the underlying assets. The cash flows the Company is currently receiving from these
securities exceed the coupon amount and the excess amount has been retiring principal. The $198 million of other asset-backed securities were backed by assets other than first-lien residential mortgages, including auto, student, lease and credit
card loans. Of these securities, 98 percent are rated AAA.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total gross unrealized losses remaining in accumulated other comprehensive income (loss) related to those asset-backed
holdings classified as Available-for-Sale amounted to $11 million ($10 million related to discontinued operations) at December 31, 2007.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Valuations of asset-backed holdings will
continue to be impacted by external market factors including default rates, rating agency actions, and the prices at which observable market transactions occur. The Company&#146;s future results may be impacted by the valuation adjustments applied
to these holdings. </FONT></P> <P align=justify><B><FONT face=serif size=1>EXPOSURE TO FINANCIAL GUARANTORS<BR></FONT></B><FONT face=serif size=2>Approximately 73 percent of state and municipal securities owned by the Company classified as
Available-for-Sale are insured by financial guarantors. Financial guarantors guarantee timely payment of interest and ultimate payment of principal on insured obligations. Certain private sector financial guarantors, the so-called monoline bond
insurers, have recently experienced credit downgrades and difficulty obtaining cost effective capital due to the insurers&#146; exposure to mortgage related product guarantees. As of December 31, 2007, approximately 98 percent of the Company&#146;s
state and municipal securities insured by financial guarantors were rated AAA, the remaining were rated AA. The ratings of these securities will depend in part on the ratings of the financial guarantors as well as in part on the underlying
issuers&#146; ratings without respect to the guaranty, among other factors. The Company has not, to date, incurred any significant losses in the value of its holdings as a result of the financial guarantors&#146; credit problems. Continued
deterioration in the ratings and investor confidence in the claims-paying abilities of the financial guarantors, or their inability to pay guaranty claims, could result in declines in the values of these securities.</FONT></P> <P
align=justify><B><FONT face=serif size=2>NOTE 5 LOANS</FONT></B></P> <P align=justify><FONT face=serif size=2>Loans at December 31 consisted of: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2>&nbsp; <B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2>&nbsp; <FONT face=serif size=2>2006</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>USCS</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp; $</FONT></B> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>43,318</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp; $</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>33,596</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>ICS</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>11,187</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>9,710</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Cardmember lending, gross</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>54,505</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>43,306</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><FONT face=serif size=2>Less: Cardmember lending reserve for<FONT size=3>&nbsp;</FONT>losses</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>1,831</FONT></B> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>1,171</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Cardmember lending, net</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp;$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>52,674</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>42,135</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%"><FONT face=serif size=2>Other loans, gross</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>807</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>1,017</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Less: Other reserve for losses</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>45</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>36</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%"><FONT face=serif size=2>Other loans, net</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>762</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=serif size=2>981</FONT> </TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)</FONT></TD>
<TD noWrap><FONT size=1>&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
<TD width="100%"><FONT face=serif size=1>Other loans primarily represent installment loans, revolving credit due from U.S. Card Services&#146; customers, and loans to airline partners. At December 31, 2007, there were no airline advances or loans
outstanding.</FONT></TD></TR></TABLE> <P align=justify><FONT face=serif size=1>84</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS <BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><FONT face=serif size=2>The
following tables present</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>changes in the reserve for losses: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="81%"><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2>&nbsp; <B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2>&nbsp; <FONT face=serif size=2>2006</FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2>&nbsp; <FONT face=serif size=2>2005</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>Cardmember lending reserves</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%"><FONT face=serif size=2>Balance, January 1</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>&nbsp; $</FONT></B> </TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>1,171</FONT></B> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>&nbsp; $</FONT> </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>996</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>&nbsp; $</FONT> </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>972</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>Additions:</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Cardmember lending</FONT>&nbsp;<FONT face=serif size=2>provisions</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP>&nbsp; </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp; </TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>2,615</FONT></B> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>1,507</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp; </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>1,227</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="81%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Cardmember lending other</FONT><SUP><FONT face=serif size=2>(b)</FONT></SUP>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>146</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>116</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>122</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="81%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Total provision</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>2,761</FONT></B> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>1,623</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>1,349</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>Deductions:</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Cardmember lending net</FONT>&nbsp;<FONT face=serif size=2>write-offs</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP>&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp; </TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>(1,990</FONT></B> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp; </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(1,359</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp; </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(1,155</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="81%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Cardmember lending other</FONT><SUP><FONT face=serif size=2>(b)</FONT></SUP>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(111</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(89</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(170</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="81%"><FONT face=serif size=2>Balance, December 31</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>1,831</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>1,171</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>996</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)</FONT></TD>
<TD vAlign=top><FONT size=1>&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
<TD vAlign=top width="100%"><FONT face=serif size=1>Represents cardmember lending balances consisting of principal (resulting from authorized transactions), interest, and fee components. Net write-offs for 2007, 2006, and 2005 include recoveries of
$295 million, $187 million, and $124 million, respectively.</FONT></TD></TR>
<TR>
<TD vAlign=top colSpan=3><FONT size=1>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(b)</FONT></TD>
<TD vAlign=top><FONT size=1>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD vAlign=top width="100%"><FONT face=serif size=1>Primarily represents adjustments to cardmember lending receivables resulting from unauthorized transactions and other items such as waived fees.</FONT></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="82%"><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp; </FONT><STRONG>2007</STRONG></FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2>&nbsp; <FONT face=serif size=2>2006</FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>2005</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Other reserves</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="82%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Balance, January 1</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%"><STRONG><FONT size=2><FONT face=serif>&nbsp; $</FONT>&nbsp;&nbsp;</FONT></STRONG></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>36</FONT></B> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>&nbsp; $</FONT> </TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>39</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>&nbsp; $</FONT> </TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>19</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="82%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Provisions</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>16</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>16</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>18</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="82%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net write-offs and other</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>(7</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>(19</FONT> </TD>
<TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>2</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Balance, December 31</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><STRONG><FONT size=2><FONT face=serif>$</FONT>&nbsp;&nbsp;</FONT></STRONG></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>45</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>36</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>39</FONT> </TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)</FONT></TD>
<TD vAlign=top><FONT size=1>&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
<TD vAlign=top width="100%"><FONT face=serif size=1>Net write-offs for 2007, 2006, and 2005 include recoveries of $7 million, $4 million, and $4 million, respectively.</FONT></TD></TR></TABLE> <P align=justify><FONT face=serif size=2>Individually
&#147;impaired&#148; loans are defined by GAAP as larger balance or restructured loans for which it is probable that the lender will be unable to collect all amounts due according to the original contractual terms of the loan agreement. An analysis
of total impaired loans follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;2007</FONT></B> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=2><STRONG>&nbsp; &nbsp;</STRONG><FONT face=serif>2006</FONT></FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=serif size=2>Loans requiring allowance for losses</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp; $</FONT></B>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>41</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp; $</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>67</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><FONT face=serif size=2>Loans expected to be fully recoverable</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>104</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=serif size=2>Total impaired loans</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>41</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>171</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="90%"><FONT face=serif size=2>Reserve for losses</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>$</FONT></B>&nbsp; </TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>21</FONT></B> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>31</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=serif size=2>Average investment during the year</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>61</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>252</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="90%"><FONT face=serif size=2>Interest income recognized while impaired</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>$</FONT></B>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>3</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=serif size=2>1</FONT> </TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>Loans amounting to $769 million and $498 million at December 31, 2007 and
2006, respectively, were past due 90 days or more and still accruing interest. These amounts primarily relate to cardmember lending for which the Company&#146;s policy is to cease accruing for interest receivable once a related cardmember loan is
more than 180 days past due.</FONT></P> <P align=justify><B><FONT face=serif size=2>NOTE 6 ASSET SECURITIZATIONS </FONT></B></P> <P align=justify><B><FONT face=serif size=1>OFF-BALANCE SHEET SECURITIZATIONS<BR></FONT></B><FONT face=serif size=2>The
Company periodically securitizes cardmember loans through the American Express Credit Account Master Trust (the Lending Trust). The following table illustrates the activity in the Lending Trust (including the securitized cardmember loans and
seller&#146;s interest) for the years ended December 31:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%"><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2006</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT face=serif size=2>Lending Trust assets, January 1</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp; $</FONT></B> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>34,584</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp; $</FONT> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>28,854</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%"><FONT face=serif size=2>Account additions, net</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>5,932</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%" bgColor=#c0c0c0><FONT face=serif size=2>Cardmember activity, net</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,610</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(202</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%"><FONT face=serif size=2>Lending Trust assets, December 31</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>36,194</FONT></B> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>34,584</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT face=serif size=2>Securitized cardmember loans, January 1</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>20,170</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>21,175</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#ffffff><FONT face=serif size=2>Impact of issuances</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=right width="3%" bgColor=#ffffff><B><FONT face=serif size=2>6,000</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>3,500</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%" bgColor=#c0c0c0><FONT face=serif size=2>Impact of maturities</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(3,500</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(4,505</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%" bgColor=#ffffff><FONT face=serif size=2>Securitized cardmember loans,<FONT size=3>&nbsp;</FONT>December 31</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#ffffff></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><B><FONT face=serif size=2>22,670</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#ffffff></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>20,170</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT face=serif size=2>Seller&#146;s interest, January 1</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>14,414</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>7,679</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#ffffff><FONT face=serif size=2>Impact of issuances</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=right width="3%" bgColor=#ffffff><B><FONT face=serif size=2>(6,000</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>(3,500</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT face=serif size=2>Impact of maturities</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>3,500</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>4,505</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#ffffff><FONT face=serif size=2>Account additions, net</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=right width="3%" bgColor=#ffffff><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>5,932</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%" bgColor=#c0c0c0><FONT face=serif size=2>Cardmember activity, net</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,610</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(202</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="88%" bgColor=#ffffff><FONT face=serif size=2>Seller&#146;s interest, December 31</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#ffffff><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#ffffff><B><FONT face=serif size=2>13,524</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>14,414</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>The Company, through its subsidiaries, is required to maintain an undivided interest in the transferred cardmember loans
(seller&#146;s interest), which is equal to the balance of all cardmember loans transferred to the Lending Trust (Lending Trust assets) less the investors&#146; portion of those assets (securitized cardmember loans). Seller&#146;s interest is
reported as cardmember lending on the Company&#146;s Consolidated Balance Sheets.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company also retains subordinated interests in the securitized cardmember loans. These interests
may include one or more investments in tranches of the securitization (subordinated securities) and an interest-only strip. The following table presents retained subordinated interests for the years ended December 31:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2006</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=serif size=2>Interest-only strip</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp; $</FONT></B> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>223</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp; $</FONT> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>266</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><FONT face=serif size=2>Subordinated securities</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>78</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>&#151;</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=serif size=2>Total</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>301</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>266</FONT> </TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>The subordinated securities are accounted for at fair
value as Available-for-Sale investment securities and are reported in investments on the Company&#146;s Consolidated Balance Sheets with unrealized gains (losses) recorded in accumulated other comprehensive (loss) income as of December 31, 2007. The
interest-only strip is accounted for at fair value and is reported </FONT></P> <P align=right><FONT face=serif size=1>85</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><FONT face=serif size=2>in
other assets on the Company&#146;s Consolidated Balance Sheets.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>The fair value of the interest-only strip is the present value of estimated future excess spread expected to be
generated by the securitized loans over the estimated life of those loans. Upon adoption of SFAS No. 155 &#147;Accounting for Certain Hybrid Financial Instruments &#150; an amendment of FASB Statements No. 133 and 140&#148; (SFAS No. 155), as of
January 1, 2007, the Company records any changes in the fair value of the interest-only strip in its securitization income, net. Prior to the adoption of SFAS No. 155, the Company accounted for the change in the fair value of the interest-only strip
in other comprehensive (loss) income.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The following table summarizes the activity related to securitized loans reported in securitization income, net for the years ended December 31:
</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%"><I><FONT face=serif size=1>(Millions)</FONT></I> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face=serif size=2>2006</FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2005</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Excess spread, net</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,025</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>1,055</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>811</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><FONT face=serif size=2>Servicing fees</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>425</FONT></B> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>407</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>412</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Gains on sales from securitizations</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>57</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>27</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>37</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="87%"><FONT face=serif size=2>Total securitization income</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>1,507</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>1,489</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>1,260</FONT> </TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)</FONT></TD>
<TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD width="100%"><FONT face=serif size=1>Excess spread, net is the net positive cash flow from interest and fee collections allocated to the investors&#146; interests after deducting the interest paid on investor certificates, credit losses,
contractual servicing fees, and other expenses. In addition, excess spread, net includes any changes in the fair value of the interest-only strip.</FONT></TD></TR></TABLE> <P align=justify><FONT face=serif size=2>At the time of a cardmember loan
securitization, the Company records a gain on sale, which is calculated as the difference between the proceeds from the sale and the book basis of the cardmember loans sold. The book basis is determined by allocating the carrying amount of the sold
cardmember loans, net of applicable credit reserves, between the cardmember loans sold and the interests retained based on their relative fair values. Such fair values are based on market prices at the date of transfer for the sold cardmember loans
and on the estimated present value of future cash flows for retained interests. Gains on sale from securitizations are reported in securitization income, net in the Company&#146;s Consolidated Statements of Income. The income component resulting
from the release of credit reserves upon sale is reported as a reduction of provision for losses from cardmember lending.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company retains servicing responsibilities for the
transferred cardmember loans through its subsidiary, American Express Travel Related Services Company, Inc., and earns a related fee. No servicing asset or liability is recognized at the time of a securitization because the Company receives adequate
compensation relative to current market servicing fees.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Management utilizes certain estimates and assumptions to determine the fair value of the retained subordinated interests,
including subordinated securities and the interest-only strip. These estimates and assumptions are based on projections of finance charges and fees paid related to the securitized assets, expected credit losses, average loan life (i.e., monthly
payment rate), the contractual fee to service the transferred assets, and a discount rate applied to the cash flows from the subordinated retained interests which is commensurate with the inherent risk. Changes in the estimates and assumptions used
may have a significant impact in the Company&#146;s valuation. The key economic assumptions used in measuring the retained subordinated interest at the time of issuance during 2007 and 2006 were as follows (rates are per annum):</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>2006</FONT> </TD>
<TD noWrap align=right width="2%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT size=2>Weighted average <FONT face=serif>loan life </FONT><I><FONT face=serif>(months)</FONT></I></FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>4</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>4</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%"><FONT face=serif size=2>Expected credit losses</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="5%"><B><FONT face=serif size=2>2.63%&#150;4.32</FONT></B> </TD>
<TD noWrap align=left width="1%"><FONT size=2><STRONG>%</STRONG></FONT><FONT size=3> </FONT></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>2.60%&#150;3.37</FONT> </TD>
<TD noWrap align=left width="2%"><FONT size=2>%</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="88%" bgColor=#c0c0c0><FONT size=2>Residual cash flows <FONT face=serif>discounted at</FONT></FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>12.0</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><STRONG><FONT size=2>%</FONT></STRONG> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>12.0</FONT> </TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1.5pt solid" noWrap align=left width="2%" bgColor=#c0c0c0><FONT size=2>%</FONT><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3> </FONT></TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>The following
table presents quantitative information about delinquencies, net credit losses, and components of securitized cardmember loans on a trust basis at December 31:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="87%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=1>Principal</FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>Amount of</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>Net</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>Total</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>Loans 30</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>Credit</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>Principal</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>Days or</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>Losses</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>Amount of</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>More Past</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>During</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%"><I><FONT face=serif size=1>(Billions)</FONT></I> </TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=1>Loans</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=1>Due</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=1>the Year</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><FONT face=serif size=2>Cardmember loans managed</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>$77.2</FONT></B> </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>$2.4</FONT></B> </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>$2.8</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Less: Cardmember loans sold</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>22.7</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>0.6</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>0.8</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%"><FONT size=2>Cardmember loans on-balance <FONT face=serif>sheet</FONT></FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>$54.5</FONT></B> </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>$1.8</FONT></B> </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>$2.0</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>2006</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><FONT face=serif size=2>Cardmember loans managed</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>$63.5</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>$1.7</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>$1.9</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Less: Cardmember loans sold</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>20.2</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.5</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.5</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="87%"><FONT size=2>Cardmember loans on-balance <FONT face=serif>sheet</FONT></FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>$43.3</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>$1.2</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>$1.4</FONT> </TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=1>86</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P
align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><FONT face=serif size=2>The
three key economic assumptions and the sensitivity of the current year&#146;s fair value of the interest-only strip to immediate 10 percent and 20 percent adverse changes in these assumptions are as follows: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="96%" colSpan=10>&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face=serif size=1>Cash Flows</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="83%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%" colSpan=2><FONT face=serif size=1>from</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="83%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%" colSpan=2><FONT face=serif size=1>Interest-</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="83%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%" colSpan=2><FONT face=serif size=1>only</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="83%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Monthly</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Expected</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%" colSpan=2><FONT face=serif size=1>Strips</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="83%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Payment</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Credit</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%" colSpan=2><FONT face=serif size=1>Discounted</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%"><I><FONT face=serif size=1>(Millions, except rates per annum)</FONT></I> </TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Rate</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Losses</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face=serif size=1>at</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face=serif size=2>Assumption</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>24.7</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><STRONG><FONT size=2>%</FONT></STRONG> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>4.3</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><STRONG><FONT size=2>%</FONT></STRONG> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>12.0</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><STRONG><FONT size=2>%</FONT></STRONG> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%"><FONT size=2>Impact on fair value of <FONT face=serif>10% adverse change</FONT></FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>(14</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>(22</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>(0.4</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="83%" bgColor=#c0c0c0><FONT size=2>Impact on fair value of <FONT face=serif>20% adverse change</FONT></FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(28</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(43</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>(0.9</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>This sensitivity analysis does not represent
management&#146;s expectations of adverse changes in these assumptions but is provided as a hypothetical scenario to assess the sensitivity of the fair value of the interest-only strip to changes in key inputs.</FONT><B><FONT face=serif size=2>
</FONT></B><FONT face=serif size=2>Management cannot extrapolate changes in fair value based on a 10 percent or 20 percent change in all key assumptions simultaneously in part because the relationship of the change in one assumption on the fair
value of the retained interest is calculated independently from any change in another assumption. Changes in one factor may cause changes in another, which could magnify or offset the sensitivities. The table below summarizes cash flows received
from the Lending Trust for the years ended December 31: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><I><FONT face=serif size=1>(Millions)</FONT></I> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2006</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT size=2>Proceeds from new securitizations <FONT face=serif>during the period</FONT></FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>5,909</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,491</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%"><FONT size=2>Proceeds from collections reinvested in <FONT face=serif>revolving cardmember securitizations</FONT></FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>63,714</FONT></B> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>62,411</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Servicing fees received</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>425</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>407</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%"><FONT size=2>Other cash flows received on retained <FONT face=serif>interests from interest-only strips</FONT></FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>2,407</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>2,517</FONT> </TD></TR></TABLE><BR> <P align=justify><B><FONT face=serif size=1>ON-BALANCE SHEET SECURITIZATIONS<BR></FONT></B><FONT face=serif
size=2>The Company&#146;s securitizations of cardmember receivables are accounted for as secured borrowing, rather than as qualifying sales, because the receivables are transferred to a non-qualifying special purpose entity, the American Express
Issuance Trust (the Charge Trust). The Charge Trust is considered a variable interest entity, which is consolidated by American Express Receivables Financing Corporation V, LLC, its primary beneficiary, which is in turn consolidated by the Company.
The cardmember receivables securitized through this entity are not accounted for as sold and the securities issued by this entity to third-party investors are reported as long-term debt on the Company&#146;s Consolidated Balance
Sheets.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The following table summarizes the total assets and liabilities held by the Charge Trust at December 31:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"><I><FONT face=serif size=1>(Billions)</FONT></I> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>2006</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face=serif size=2>Assets</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>$9.0</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>$9.6</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="93%"><FONT face=serif size=2>Liabilities</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>3.1</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>1.2</FONT> </TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>These receivables are available only for payment of the debt or other
obligations issued or arising in the securitization transactions. The long-term debt is payable only out of collections on the underlying securitized assets.</FONT></P> <P align=right><FONT face=serif size=1>87</FONT></P> <HR align=center
width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><B><FONT face=serif size=2>NOTE
7 CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) </FONT></B></P> <P align=justify><FONT face=serif size=2>Changes in each component of accumulated other comprehensive income (loss) for the three years ended December 31, were as follows:
</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="60%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Net</FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Net</FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Unrealized</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Unrealized</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="5%" colSpan=2></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Gains</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Foreign</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Pension</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Minimum</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Accumulated</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Net Unrealized</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>(Losses)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Currency</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>and Other</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Pension</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Other</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%"><FONT face=serif size=1>Three Years Ended December 31,</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Gains (Losses)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>on</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Translation</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Postretirement</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Liability</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Comprehensive</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="60%"><FONT face=serif size=1><I>(Millions), net of tax</I><SUP>(a)</SUP></FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>on Securities</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Derivatives</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Adjustments</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Benefit Costs</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Adjustment</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Income (Loss)</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%" bgColor=#c0c0c0><B><FONT face=serif size=2>Balances at December 31, 2004</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>760</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(142</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(344</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&#151;</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(16</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>258</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%">&nbsp; &nbsp;&nbsp; <FONT face=serif size=2>Investment Securities</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net unrealized securities losses</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(158</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(158</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Reclassification for net realized gains</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>(7</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>(7</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Other losses<SUP>(b)</SUP></FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(10</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(10</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Derivatives</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net unrealized gains on cash flow hedges</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>300</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>300</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Cash flow hedge gains reclassified to earnings</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>(44</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>(44</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Foreign currency translation adjustments</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Translation losses</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>(64</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>(64</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net losses related to hedges of investment in foreign</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>operations</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(6</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(6</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Pension and other postretirement benefit costs</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Minimum pension liability adjustment</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(2</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(2</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="60%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Discontinued operations<SUP>(c)</SUP></FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>(432</FONT> </TD>
<TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>19</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>(11</FONT> </TD>
<TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>(424</FONT> </TD>
<TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net change in accumulated other comprehensive</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>income (loss), excluding the spin-off of Ameriprise</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>(607</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>275</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>(81</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>(2</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>(415</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="60%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Spin-off of Ameriprise<SUP>(d)</SUP></FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(16</FONT> </TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>10</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>25</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(1</FONT> </TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>18</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net change in accumulated other comprehensive income</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="60%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>(loss)</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>(623</FONT> </TD>
<TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>285</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>(56</FONT> </TD>
<TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>&#151;</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>(3</FONT> </TD>
<TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>(397</FONT> </TD>
<TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%" bgColor=#c0c0c0><B><FONT face=serif size=2>Balances at December 31, 2005</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>137</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>143</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(400</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>&#151;</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(19</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(139</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Investment Securities</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net unrealized securities gains</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>11</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>11</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Reclassification for net realized gains</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>(54</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>(54</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Other gains<SUP>(b)</SUP></FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>44</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>44</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Derivatives</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net unrealized gains on cash flow hedges</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>42</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>42</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Cash flow hedge gains reclassified to earnings</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>(158</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>(158</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Foreign currency translation adjustments</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Reclassification to earnings due to sale of foreign entities</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>110</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>110</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Translation gains</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>215</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>215</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net losses related to hedges of investment in foreign</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>operations</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>(221</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>(221</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Pension and other postretirement benefit costs</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Adjustment to initially apply SFAS No. 158</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>(415</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>19</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>(396</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Discontinued operations<SUP>(c)</SUP></FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(46</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>74</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(2</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>26</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="60%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net change in accumulated other comprehensive</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="60%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>income (loss)</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>(45</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>(116</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>178</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>(417</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>19</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>(381</FONT> </TD>
<TD style="BORDER-BOTTOM: #ffffff 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=1>88</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P
align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="67%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Net</FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Net</FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="67%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Unrealized</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Unrealized</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="67%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Gains</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%" colSpan=2><FONT face=serif size=1>Foreign</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Pension</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%" colSpan=2><FONT face=serif size=1>Minimum</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Accumulated</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="67%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Net Unrealized</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>(Losses)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%" colSpan=2><FONT face=serif size=1>Currency</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>and Other</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%" colSpan=2><FONT face=serif size=1>Pension</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Other</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="67%"><FONT face=serif size=1>Three Years Ended December 31,</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Gains (Losses)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>on</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="3%" colSpan=2><FONT face=serif size=1>Translation</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Postretirement</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%" colSpan=2><FONT face=serif size=1>Liability</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Comprehensive</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="67%"><I><FONT face=serif size=1>(Millions), net of tax</FONT></I><SUP><FONT face=serif size=1>(a)</FONT></SUP> </TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>on Securities</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Derivatives</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face=serif size=1>Adjustments</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Benefit Costs</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face=serif size=1>Adjustment</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Income (Loss)</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="67%" bgColor=#c0c0c0><B><FONT face=serif size=2>Balances at December 31, 2006</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>92</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>$<FONT size=3> </FONT></FONT></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>27</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>(222</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>(417</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>&#151;</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>(520</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="67%">&nbsp; &nbsp;&nbsp; <FONT face=serif size=2>Investment securities</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="67%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net unrealized securities losses</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT size=+0><FONT face=serif size=2>(76</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT size=+0><FONT face=serif size=2>)</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT size=+0><FONT face=serif size=2>(76</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT size=+0><FONT face=serif size=2>)</FONT> </FONT></B></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="67%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Reclassification for net realized losses</FONT><SUP><FONT face=serif size=2>(e)</FONT></SUP> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="1%"><B><FONT size=+0><FONT face=serif size=2>48</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="1%"><B><FONT size=+0><FONT face=serif size=2>48</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="67%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Other losses</FONT><SUP><FONT face=serif size=2>(b)</FONT></SUP> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT size=+0><FONT face=serif size=2>(47</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT size=+0><FONT face=serif size=2>)</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT size=+0><FONT face=serif size=2>(47</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT size=+0><FONT face=serif size=2>)</FONT> </FONT></B></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="67%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Derivatives</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="67%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net unrealized gains on cash flow hedges</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT size=+0><FONT face=serif size=2>(68</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT size=+0><FONT face=serif size=2>)</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT size=+0><FONT face=serif size=2>(68</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT size=+0><FONT face=serif size=2>)</FONT> </FONT></B></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="67%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Cash flow hedge gains reclassified to earnings</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="2%"><B><FONT size=+0><FONT face=serif size=2>(30</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%"><B><FONT size=+0><FONT face=serif size=2>)</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="1%"><B><FONT size=+0><FONT face=serif size=2>(30</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%"><B><FONT size=+0><FONT face=serif size=2>)</FONT> </FONT></B></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="67%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Foreign currency translation adjustments</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="67%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Reclassification to earnings due to sale of foreign entities</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="1%"><B><FONT size=+0><FONT face=serif size=2>3</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="1%"><B><FONT size=+0><FONT face=serif size=2>3</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="67%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Translation gains</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT size=+0><FONT face=serif size=2>347</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT size=+0><FONT face=serif size=2>347</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="67%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net losses related to hedges of investment in foreign</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="67%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>operations</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="1%"><B><FONT size=+0><FONT face=serif size=2>(380</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%"><B><FONT size=+0><FONT face=serif size=2>)</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="1%"><B><FONT size=+0><FONT face=serif size=2>(380</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%"><B><FONT size=+0><FONT face=serif size=2>)</FONT> </FONT></B></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="67%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Pension and other postretirement benefit costs</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="67%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Annual valuation adjustment</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="1%"><B><FONT size=+0><FONT face=serif size=2>239</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="1%"><B><FONT size=+0><FONT face=serif size=2>239</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="67%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Curtailment impact</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT size=+0><FONT face=serif size=2>18</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT size=+0><FONT face=serif size=2>18</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="67%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Amortization of prior service cost and net actuarial loss</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="1%"><B><FONT size=+0><FONT face=serif size=2>28</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="1%"><B><FONT size=+0><FONT face=serif size=2>28</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="67%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Discontinued operations</FONT><SUP><FONT face=serif size=2>(c)</FONT></SUP> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0><B><FONT size=+0>&nbsp;</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT size=+0><FONT face=serif size=2>(5</FONT> </FONT></B></TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT size=+0><FONT face=serif size=2>)</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#c0c0c0><B><FONT size=+0>&nbsp;</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#c0c0c0><B><FONT size=+0>&nbsp;</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#c0c0c0><B><FONT size=+0>&nbsp;</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT size=+0><FONT face=serif size=2>(3</FONT> </FONT></B></TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT size=+0><FONT face=serif size=2>)</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0><B><FONT size=+0>&nbsp;</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT size=+0><FONT face=serif size=2>4</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT size=+0>&nbsp;&nbsp;</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT size=+0>&nbsp;</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0><B><FONT size=+0>&nbsp;</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT size=+0><FONT face=serif size=2>(4</FONT> </FONT></B></TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT size=+0><FONT face=serif size=2>)</FONT> </FONT></B></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="67%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net change in accumulated other comprehensive income</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="67%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>(loss)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"><B><FONT size=+0>&nbsp;</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT size=+0><FONT face=serif size=2>(80</FONT> </FONT></B></TD>
<TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><B><FONT size=+0><FONT face=serif size=2>)</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%"><B><FONT size=+0>&nbsp;</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><B><FONT size=+0><FONT face=serif size=2>(98</FONT> </FONT></B></TD>
<TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><B><FONT size=+0><FONT face=serif size=2>)</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%"><B><FONT size=+0>&nbsp;</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT size=+0><FONT face=serif size=2>(33</FONT> </FONT></B></TD>
<TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><B><FONT size=+0><FONT face=serif size=2>)</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"><B><FONT size=+0>&nbsp;</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT size=+0><FONT face=serif size=2>289</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><B><FONT size=+0>&nbsp;</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT size=+0><FONT face=serif size=2>&#151;</FONT> </FONT></B></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"><B><FONT size=+0>&nbsp;</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT size=+0><FONT face=serif size=2>78</FONT> </FONT></B></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="67%" bgColor=#c0c0c0><B><FONT face=serif size=2>Balances at December 31, 2007</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>12</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>(71</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>(255</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>(128</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>(442</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)</FONT></TD>
<TD vAlign=top noWrap><FONT size=1>&nbsp;&nbsp;&nbsp; </FONT></TD>
<TD width="100%"><FONT face=serif size=1>The following table shows the tax impact for the three years ended December 31, for the changes in each component of accumulated other comprehensive income (loss):</FONT></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=left width="85%"><I><FONT face=serif size=1>(Millions)</FONT></I> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" colSpan=2><FONT face=serif size=2>2006</FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" colSpan=2><FONT face=serif size=2>2005</FONT> </TD>
<TD align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Investment securities</FONT> </TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp; $</FONT></B> </TD>
<TD align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>(52</FONT></B> </TD>
<TD align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(2</FONT> </TD>
<TD align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(81</FONT> </TD>
<TD align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)<FONT style="BACKGROUND-COLOR: #c0c0c0" size=3> </FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="85%"><FONT face=serif size=2>Derivatives</FONT>&nbsp; </TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=left width="1%"></TD>
<TD align=right width="2%"><B><FONT face=serif size=2>(56</FONT></B> </TD>
<TD align=left width="1%"><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=right width="2%"><FONT face=serif size=2>(61</FONT> </TD>
<TD align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=right width="2%"><FONT face=serif size=2>139</FONT> </TD>
<TD align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Foreign currency translation adjustments</FONT> </TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>17</FONT></B> </TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(28</FONT> </TD>
<TD align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>30</FONT> </TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD align=left width="85%"><FONT face=serif size=2>Pension and other postretirement benefit costs</FONT> </TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=right width="2%"><B><FONT face=serif size=2>152</FONT></B> </TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=right width="2%"><FONT face=serif size=2>(209</FONT> </TD>
<TD align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=right width="2%"><FONT face=serif size=2>&#151;</FONT> </TD>
<TD align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Minimum pension liability adjustment</FONT> </TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>10</FONT> </TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(2</FONT> </TD>
<TD align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)<FONT style="BACKGROUND-COLOR: #c0c0c0" size=3> </FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="85%"><FONT face=serif size=2>Discontinued operations</FONT><SUP><FONT face=serif size=2>(c)</FONT></SUP> </TD>
<TD align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="2%"><B><FONT face=serif size=2>(3</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #ffffff 1pt solid" align=left width="1%"><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="2%"><FONT face=serif size=2>14</FONT> </TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="2%"><FONT face=serif size=2>(234</FONT> </TD>
<TD style="BORDER-BOTTOM: #ffffff 1pt solid" align=left width="1%"><FONT face=serif size=2>)<FONT size=3> </FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Total tax impact</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp; $</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>58</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(276</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(148</FONT> </TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1.5pt solid" align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)<FONT style="BACKGROUND-COLOR: #c0c0c0" size=3> </FONT></FONT></TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(b)</FONT></TD>
<TD vAlign=top noWrap><FONT size=1>&nbsp;&nbsp;&nbsp; </FONT></TD>
<TD width="100%"><FONT face=serif size=1>Other gains (losses) primarily related to the impact of changes in the fair market value of the interest-only strip for year 2005 and 2006. In connection with the initial adoption of SFAS No. 155,
&#147;Accounting for Certain Hybrid Financial Instruments &#150; an amendment of FASB Statements No. 133 and 140&#148; (SFAS No. 155), as of January 1, 2007, the Company recognized a gain of $80 million ($50 million after-tax) related to the fair
value of the interest-only strips, which was recorded in other comprehensive income (loss) in previous periods. Changes in the fair value of the interest-only strips subsequent to the adoption of this standard are reflected in securitization income,
net.</FONT></TD></TR>
<TR>
<TD width="100%" colSpan=3>&nbsp;</TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(c)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD width="100%"><FONT face=serif size=1>Relates to the change in accumulated other comprehensive income (loss) prior to the dispositions of AEB and other businesses (including TBS) and the spin-off of Ameriprise.</FONT></TD></TR>
<TR>
<TD width="100%" colSpan=3>&nbsp;</TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(d)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD width="100%"><FONT face=serif size=1>Relates to the ending balance of accumulated other comprehensive income (loss) of Ameriprise at the time of the spin-off and certain other dispositions (including TBS) which is shown as a separate component
on the Statement of Shareholders&#146; Equity.</FONT></TD></TR>
<TR>
<TD width="100%" colSpan=3>&nbsp;</TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(e)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD width="100%"><FONT face=serif size=1>Includes the impact of transfer of Available-for-Sale securities to Trading securities. The transfer resulted in a gain of $2 million after-tax ($3 million pretax) and loss of $35 million after-tax ($54
million pretax) reclassified from other comprehensive income to earnings.</FONT></TD></TR></TABLE> <P align=right><FONT face=serif size=1>89</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><B><FONT face=serif size=2>NOTE
8 OTHER ASSETS </FONT></B></P> <P align=justify><FONT face=serif size=2>The following is a summary of other assets at December 31:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="91%"><I><FONT face=serif size=1>(Millions)</FONT></I> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp; &nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face=serif size=2>2006</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=serif size=2>Deferred tax assets, net</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,411</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>1,640</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="91%"><FONT face=serif size=2>Goodwill</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>1,508</FONT></B> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>1,469</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=serif size=2>Prepaid expenses</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>618</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>662</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="91%"><FONT face=serif size=2>Other intangible assets, at cost</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>204</FONT></B> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>156</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=serif size=2>Other investments</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>314</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>320</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="91%"><FONT face=serif size=2>Restricted cash</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>276</FONT></B> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>332</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=serif size=2>Other</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,018</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>1,947</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="91%"><FONT face=serif size=2>Total</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>7,349</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>6,526</FONT> </TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)</FONT></TD>
<TD vAlign=top noWrap><FONT size=1>&nbsp;&nbsp;&nbsp; </FONT></TD>
<TD width="100%"><FONT face=serif size=1>Includes the interest-only strip assets, pension plan assets, derivative assets, and other miscellaneous assets.</FONT></TD></TR></TABLE> <P align=justify><B><FONT face=serif
size=1>GOODWILL<BR></FONT></B><FONT face=serif size=2>The changes in the carrying amount of goodwill reported in the Company&#146;s reportable operating segments were as follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="63%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="4%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Global</FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="6%" colSpan=2><FONT face=serif size=1>Global Network</FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="63%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%" colSpan=2><FONT face=serif size=1>U.S. Card</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>International</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Commercial</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="6%" colSpan=2><FONT face=serif size=1>&amp; Merchant</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%" colSpan=2><FONT face=serif size=1>Corporate &amp;</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="63%"><I><FONT face=serif size=1>(Millions)</FONT></I> </TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face=serif size=1>Services</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Card Services</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Services</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%" colSpan=2><FONT face=serif size=1>Services</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face=serif size=1>Other</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face=serif size=1>Total</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="63%" bgColor=#c0c0c0><FONT face=serif size=2>Balance at January 1, 2006</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>168</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>542</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>631</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>104</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$17</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>1,462</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="63%"><FONT face=serif size=2>Acquisitions</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>&#151;</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>&#151;</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>104</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="4%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>2</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>&#151;</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>106</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="63%" bgColor=#c0c0c0><FONT face=serif size=2>Dispositions</FONT><SUP><FONT face=serif size=2>(b)</FONT></SUP> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>&#151;</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>(27</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(5</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(1</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>&#151;</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(33</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="63%"><FONT face=serif size=2>Other, including foreign currency translation</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="4%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="63%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>and reclassifications</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>&#151;</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>3</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>10</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="4%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>(78</FONT> </TD>
<TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>(1</FONT> </TD>
<TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>(66</FONT> </TD>
<TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="63%" bgColor=#c0c0c0><FONT face=serif size=2>Balance at December 31, 2006</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>168</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>518</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>740</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>27</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>16</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>1,469</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="63%"><FONT face=serif size=2>Acquisitions</FONT><SUP><FONT face=serif size=2>(c)</FONT></SUP> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>7</FONT></B> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>19</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="4%"></TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>26</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="63%" bgColor=#c0c0c0><FONT face=serif size=2>Other, including foreign currency translation</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>1</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>12</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>13</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="63%"><B><FONT face=serif size=2>Balance at December 31, 2007</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>175</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="4%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>519</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>771</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="4%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>27</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>$16</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>1,508</FONT></B> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)</FONT></TD>
<TD vAlign=top noWrap><FONT size=1>&nbsp;&nbsp;&nbsp; </FONT></TD>
<TD width="100%"><FONT face=serif size=1>Approximately $100 million related to Harbor Payments. See Note 1 for further discussion.</FONT></TD></TR>
<TR>
<TD width="100%" colSpan=3>&nbsp;</TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(b)</FONT></TD>
<TD vAlign=top noWrap><FONT size=1>&nbsp;&nbsp;&nbsp; </FONT></TD>
<TD width="100%"><FONT face=serif size=1>Relates to the disposition of the card and merchant-related activities in Brazil, effective June 30, 2006.</FONT></TD></TR>
<TR>
<TD width="100%" colSpan=3>&nbsp;</TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(c)</FONT></TD>
<TD vAlign=top noWrap><FONT size=1>&nbsp;&nbsp;&nbsp; </FONT></TD>
<TD width="100%"><FONT face=serif size=1>Includes approximately $18 million related to the acquisition of a travel services business.</FONT></TD></TR></TABLE> <P align=justify><B><FONT face=serif size=1>OTHER INTANGIBLE ASSETS<BR></FONT></B><FONT
face=serif size=2>The gross changes in the carrying values and accumulated amortization related to other intangible assets, which are all definite-lived and primarily represent customer relationships, were as follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="61%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="16%" colSpan=10><B><FONT face=serif size=1><FONT size=2>2007</FONT></FONT></B> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="19%" colSpan=10><FONT size=2>2006</FONT> </TD>
<TD noWrap align=center width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="61%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Gross Carrying</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Accumulated</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Net Carrying</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Gross Carrying</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Accumulated</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Net Carrying</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="61%"><I><FONT face=serif size=1>(Millions)</FONT></I> </TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Amount</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Amortization</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1>Amount</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Amount</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Amortization</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" colSpan=2><FONT face=serif size=1>Amount</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="61%" bgColor=#c0c0c0><FONT face=serif size=2>Balance at January 1</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>341</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(185</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>156</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>267</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(158</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>109</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="61%"><FONT face=serif size=2>Acquisitions</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>93</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>93</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="4%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>108</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>&#151;</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>108</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="61%" bgColor=#c0c0c0><FONT face=serif size=2>Amortization</FONT><SUP><FONT face=serif size=2>(b)</FONT></SUP> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>&#151;</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>(47</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>(47</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>&#151;</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(60</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(60</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="61%"><FONT face=serif size=2>Other</FONT><SUP><FONT face=serif size=2>(c)</FONT></SUP> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>(110</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>112</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>2</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="4%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>(34</FONT> </TD>
<TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>33</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>(1</FONT> </TD>
<TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="61%" bgColor=#c0c0c0><FONT face=serif size=2>Balance at December 31</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>324</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>(120</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>204</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>341</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(185</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>156</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)</FONT></TD>
<TD vAlign=top noWrap><FONT size=1>&nbsp;&nbsp;&nbsp; </FONT></TD>
<TD width="100%"><FONT face=serif size=1>Intangible assets acquired in 2007 and 2006 are being amortized, on average, over 16 years and 6 years, respectively.</FONT></TD></TR>
<TR>
<TD width="100%" colSpan=3>&nbsp;</TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(b)</FONT></TD>
<TD vAlign=top noWrap><FONT size=1>&nbsp;&nbsp;&nbsp; </FONT></TD>
<TD width="100%"><FONT face=serif size=1>2005 amortization expense was $49 million.</FONT></TD></TR>
<TR>
<TD width="100%" colSpan=3>&nbsp;</TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(c)</FONT></TD>
<TD vAlign=top noWrap><FONT size=1>&nbsp;&nbsp;&nbsp; </FONT></TD>
<TD width="100%"><FONT face=serif size=1>Primarily includes the write-off of fully amortized intangible assets.</FONT></TD></TR></TABLE> <P align=justify><FONT face=serif size=2>Estimated intangible amortization expense for the next five years is as
follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><I><FONT face=serif size=1>(Millions)</FONT></I> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp; &nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>2008</FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>2009</FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>2010</FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>2011</FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>2012</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Estimated amortization expense</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>$51</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>$41</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>$33</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>$22</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>$16</FONT></B> </TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=1>90</FONT></P> <HR align=center width="100%"
noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><B><FONT face=serif
size=1>OTHER INVESTMENTS<BR></FONT></B><FONT face=serif size=2>In 2006, the Company acquired a non-controlling interest in the common stock of Industrial and Commercial Bank of China (ICBC) for $200 million. The Company is restricted from
transferring 50 percent of the underlying shares until April 2009 and the other 50 percent of the underlying shares until October 2009. As a result of this restriction, the Company accounts for this investment at cost until 12 months before the
transfer restriction expires (April 2008 and October 2008 for each 50 percent investment tranche, respectively), at which time the applicable investment tranche will be accounted for at fair value (approximately $375 million and $360 million at
December 31, 2007, for each tranche, respectively, considering the impact of any remaining transfer restriction period).<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company has $114 million and $120 million in affordable
housing partnership interests at December 31, 2007 and 2006, respectively. The Company has variable interests in affordable housing partnerships for which it is not considered the primary beneficiary and, therefore, does not
consolidate.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>For these variable interests, the Company is a limited partner and typically has a less than 50 percent interest and receives the benefits and accepts the risks
consistent with its limited partner interests. In the limited cases in which the Company has a greater than 50 percent interest in affordable housing partnerships, it was determined that the general partner acts as the Company&#146;s agent and the
general partner is most closely related to the partnership as it is the key decision maker and controls the operations. These partnership interests are accounted for under EITF No. 94-01, &#147;Accounting for Tax Benefits Resulting from Investments
in Affordable Housing Projects,&#148; and the related accounting guidance of Statement of Position No. 78-9, &#147;Accounting for Investments in Real Estate Ventures&#148; and EITF Topic D-46, &#147;Accounting for Limited Partnership
Investments.&#148; The Company&#146;s maximum exposure to loss as a result of its investment in these partnerships is represented by the carrying value.</FONT></P> <P align=justify><B><FONT face=serif size=2>NOTE 9 SHORT- AND LONG-TERM DEBT AND
BORROWING AGREEMENTS </FONT></B></P> <P align=justify><B><FONT face=serif size=1>SHORT-TERM DEBT<BR></FONT></B><FONT face=serif size=2>The Company&#146;s short-term debt outstanding, defined as debt with original maturities of less than one year, at
December 31, was as follows:</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="73%"><FONT size=1><I><FONT face=serif size=1>(Millions, except percentages)</FONT></I>&nbsp; </FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="11%" colSpan=7><FONT size=2><B><FONT face=serif size=2>2007</FONT></B> </FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="11%" colSpan=7><FONT size=2><FONT face=serif size=2>2006</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="73%">&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=1>&nbsp; </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Year-End</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=1>&nbsp; </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Year-End</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="73%">&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=1>&nbsp; </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Year-End</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Effective</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=1>&nbsp; </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Year-End</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Effective</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="73%">&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=1>&nbsp; </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Stated</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Interest</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=1>&nbsp; </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Stated</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Interest</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="73%">&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1>Outstanding</FONT> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Rate on</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Rate with</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1>Outstanding</FONT> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Rate on</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Rate with</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="73%">&nbsp; </TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1>Balance</FONT> </FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Debt</FONT><SUP><FONT face=serif size=1>(a)</FONT></SUP> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Swaps</FONT><SUP><FONT face=serif size=1>(a)(b)</FONT></SUP> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1>Balance</FONT> </FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Debt</FONT><SUP><FONT face=serif size=1>(a)</FONT></SUP> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Swaps</FONT><SUP><FONT face=serif size=1>(a)(b)</FONT></SUP> </FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Commercial paper</FONT>&nbsp; </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <STRONG>$</STRONG></FONT> </FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>10,490</FONT></B> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <STRONG>4.36</STRONG></FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <STRONG>4.33</STRONG></FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$</FONT> </FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>5,782</FONT> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>5.23</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>% </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>&#151;</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="73%"><FONT size=2><FONT face=serif size=2>Borrowed funds</FONT><SUP><FONT face=serif size=2>(c)</FONT></SUP>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>3,566</FONT></B> </FONT></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT size=2><STRONG><FONT face=serif>4.99</FONT></STRONG> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=2><B><FONT face=serif size=2>4.99</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>2,609</FONT> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.96</FONT> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>% </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.95</FONT> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>% </FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Bank notes payable</FONT>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>3,243</FONT></B> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><STRONG><FONT face=serif>5.18</FONT></STRONG> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>&#151;</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>6,100</FONT> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>5.31</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>% </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>&#151;</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="73%"><FONT size=2><FONT face=serif size=2>Other</FONT><SUP><FONT face=serif size=2>(d)</FONT></SUP>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>463</FONT></B> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT size=2><STRONG><FONT face=serif>1.88</FONT></STRONG> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT size=2><B><FONT face=serif size=2>&#151;</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>745</FONT> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>2.41</FONT> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>% </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>&#151;</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="73%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Total</FONT>&nbsp; </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>$</FONT></B> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>17,762</FONT></B> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><STRONG><FONT face=serif>4.57</FONT></STRONG> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>$</FONT> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>15,236</FONT> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>5.08</FONT> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>% </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)</FONT></TD>
<TD vAlign=top noWrap>&nbsp;&nbsp; </TD>
<TD style="TEXT-ALIGN: justify" vAlign=top width="100%"><FONT face=serif size=1>For floating rate debt issuances, the stated and effective interest rates are based on the floating rates in effect at December 31, 2007 and 2006, respectively. These
rates are not indicative of future interest rates.</FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(b)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD style="TEXT-ALIGN: justify" vAlign=top width="100%"><FONT face=serif size=1>Effective interest rates are only presented if swaps are in place to hedge the underlying debt at the respective year-end.</FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(c)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD style="TEXT-ALIGN: justify" vAlign=top width="100%"><FONT face=serif size=1>Included in borrowed funds is $313 million and $187 million in 2007 and 2006, respectively, of short-term debt that relates to borrowings with a discontinued operation
(AEB).</FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(d)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD style="TEXT-ALIGN: justify" vAlign=top width="100%"><FONT face=serif size=1>Includes interest bearing overdrafts with banks of $463 million and $706 million at December 31, 2007 and 2006, respectively.</FONT></TD></TR></TABLE> <P
align=justify><FONT face=serif size=2>Unused lines of credit to support commercial paper borrowings were approximately $8.2 billion and $8.1 billion at December 31, 2007 and 2006, respectively.</FONT></P> <P align=right><FONT face=serif size=1>91
</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><B><FONT face=serif
size=1>LONG-TERM DEBT<BR></FONT></B><FONT face=serif size=2>The Company&#146;s long-term debt outstanding, defined as debt with original maturities of one year or greater, at December 31, was as follows:</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="68%"><I><FONT face=serif size=1>(Millions, except percentages)</FONT></I>&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="15%" colSpan=9><FONT size=2><B><FONT face=serif size=2>2007</FONT></B></FONT> <FONT size=2></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%">&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="12%" colSpan=7><FONT size=2>2006 </FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="68%">&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=1>&nbsp; </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=1>&nbsp; </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Year-End</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=1>&nbsp; </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"></TD>
<TD noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Year-End</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="68%">&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=1>&nbsp; </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=1>&nbsp; </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Year-End</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Effective</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=1>&nbsp; </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Year-End</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"></TD>
<TD noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Effective</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="68%">&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=1>&nbsp; </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=1>&nbsp; </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Stated</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Interest</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=1>&nbsp; </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Stated</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"></TD>
<TD noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Interest</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="68%">&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=1><FONT face=serif size=1>Maturity</FONT> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1>Outstanding</FONT> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Rate on</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Rate with</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1>Outstanding</FONT> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Rate on</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"></TD>
<TD noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Rate with</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="68%">&nbsp; </TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=1><FONT face=serif size=1>Dates</FONT> </FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1>Balance</FONT> </FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Debt</FONT><SUP><FONT face=serif size=1>(a)</FONT></SUP> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Swaps</FONT><SUP><FONT face=serif size=1>(a)(b)</FONT></SUP> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1>Balance</FONT> </FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Debt</FONT><SUP><FONT face=serif size=1>(a)</FONT></SUP> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT size=1><FONT face=serif size=1>Swaps</FONT><SUP><FONT face=serif size=1>(a)(b)</FONT></SUP> </FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="68%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>American Express Company</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="68%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT size=2><B><FONT face=serif size=2>(Parent Company only)</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="68%"><FONT size=2><FONT face=serif size=2>Fixed and Floating Rate Senior Notes</FONT> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp; 2009&#150;2033</FONT></B> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <STRONG>$</STRONG></FONT> </FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>5,996</FONT></B> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=2><B><FONT face=serif size=2>5.40</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=2><B><FONT face=serif size=2>&#151;</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $</FONT> </FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>5,244</FONT> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.04</FONT> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>% </FONT></TD>
<TD noWrap align=right width="2%"></TD>
<TD noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>&#151;</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="68%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Subordinated Debentures</FONT><SUP><FONT face=serif size=2>(c)</FONT></SUP>&nbsp; </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>2036</FONT></B>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>750</FONT></B> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>6.80</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>&#151;</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>750</FONT> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>6.80</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>% </FONT></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>&#151;</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="68%"><FONT size=2><B><FONT face=serif size=2>American Express Travel Related</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="68%"><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><B><FONT face=serif size=2>Services Company, Inc.</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="68%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Fixed and Floating Rate Senior Notes</FONT> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>2009&#150;2011</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>2,000</FONT></B> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<STRONG>4.93</STRONG></FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<STRONG>4.98</STRONG> </FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>2,000</FONT> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>4.95</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>% </FONT></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.98</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>% </FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="68%"><FONT size=2><FONT face=serif size=2><STRONG>American Express Credit</STRONG> </FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR>
<TD noWrap align=left width="68%">&nbsp;&nbsp;&nbsp;&nbsp; <STRONG><FONT size=2>Corporation</FONT></STRONG></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="68%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Fixed and Floating Rate Senior Notes</FONT> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>2008&#150;2017</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>19,118</FONT></B> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>4.99</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>4.98</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>19,037</FONT> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>5.10</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>% </FONT></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>5.10</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>% </FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="68%"><FONT size=2><FONT face=serif size=2>Borrowings under Bank Credit Facilities</FONT> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>2012</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>3,146</FONT></B> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=2><B><FONT face=serif size=2>7.34</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=2><B><FONT face=serif size=2>7.09</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>2,753</FONT> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>6.69</FONT> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>% </FONT></TD>
<TD noWrap align=right width="2%"></TD>
<TD noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>6.49</FONT> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>% </FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="68%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>American Express Centurion Bank</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="68%"><FONT size=2><FONT face=serif size=2>Fixed and Floating Rate Senior Notes</FONT> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>2008&#150;2017</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>11,099</FONT></B> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=2><B><FONT face=serif size=2>5.25</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=2><B><FONT face=serif size=2>5.14</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>7,541</FONT> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>5.33</FONT> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>% </FONT></TD>
<TD noWrap align=right width="2%"></TD>
<TD noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>5.34</FONT> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>% </FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="68%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>American Express Bank, FSB</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="68%"><FONT size=2><FONT face=serif size=2>Fixed and Floating Rate Senior Notes</FONT> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>2008&#150;2017</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>9,909</FONT></B> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=2><B><FONT face=serif size=2>5.23</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=2><B><FONT face=serif size=2>5.13</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>4,000</FONT> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>5.38</FONT> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>% </FONT></TD>
<TD noWrap align=right width="2%"></TD>
<TD noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>5.27</FONT> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>% </FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="68%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>American Express Receivables</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="68%" bgColor=#c0c0c0><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><B><FONT face=serif size=2>Financing Corporation V LLC</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="68%"><FONT size=2><FONT face=serif size=2>Floating Rate Senior Notes</FONT> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>2010&#150;2012</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>2,976</FONT></B> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=2><B><FONT face=serif size=2>5.19</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=2><B><FONT face=serif size=2>&#151;</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>1,116</FONT> </FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>5.38</FONT> </FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>% </FONT></TD>
<TD noWrap align=right width="2%"></TD>
<TD noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>&#151;</FONT> </FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="68%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Floating Rate Subordinated Notes</FONT> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>2010&#150;2012</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>144</FONT></B> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>5.67</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>&#151;</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>84</FONT> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>5.66</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>% </FONT></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>&#151;</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="68%"><FONT size=2><B><FONT face=serif size=2>Other</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp; </FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="68%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Fixed and Floating Rate Notes</FONT><SUP><FONT face=serif size=2>(d)</FONT></SUP>&nbsp; </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>2008&#150;2014</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>147</FONT></B> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>6.53</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>&#151;</FONT></B> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>222</FONT> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>6.83</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>% </FONT></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>7.59</FONT> </FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>% </FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="68%"><FONT size=2><FONT face=serif size=2>Total</FONT> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="3%"><FONT size=2>&nbsp; </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>55,285</FONT></B> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT size=2><B><FONT face=serif size=2>5.30</FONT></B> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2><STRONG>%</STRONG> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>$</FONT> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>42,747</FONT> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>5.30</FONT> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2>% </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)</FONT></TD>
<TD vAlign=top noWrap>&nbsp;&nbsp; </TD>
<TD style="TEXT-ALIGN: justify" vAlign=top width="100%"><FONT face=serif size=1>For floating rate debt issuances, the stated and effective interest rates are based on the floating rates in effect at December 31, 2007 and 2006, respectively. These
rates are not indicative of future interest rates.</FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(b)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD style="TEXT-ALIGN: justify" vAlign=top width="100%"><FONT face=serif size=1>Effective interest rates are only presented when swaps are in place to hedge the underlying debt at the respective year-end. </FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(c)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD style="TEXT-ALIGN: justify" vAlign=top width="100%"><FONT face=serif size=1>The maturity date will automatically be extended to September 1, 2066 except in the case of (1) prior redemption or (2) default related to the
debentures.</FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(d)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD style="TEXT-ALIGN: justify" vAlign=top width="100%"><FONT face=serif size=1>This balance includes $90 million and $92 million related to a sale-leaseback transaction as of December 31, 2007 and 2006, respectively, as described in Note
14.</FONT></TD></TR></TABLE> <P align=justify><FONT face=serif size=2>As of December 31, 2007, the Parent Company had $750 million principal outstanding of Subordinated Debentures that accrue interest at an annual rate of 6.80 percent until
September 1, 2016 and at an annual rate of three-month LIBOR plus 2.23 percent thereafter. At the Company&#146;s option, the Subordinated Debentures are redeemable for cash after September 1, 2016 at 100 percent of the principal amount plus any
accrued but unpaid interest. If the Company fails to achieve specified performance measures, it will be required to issue shares of its common stock and apply the net proceeds to make interest payments on the Subordinated Debentures. The Company
achieved the specified performance measures in 2007.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>As of December 31, 2007, the Parent Company had $2 billion principal outstanding of unsecured, Floating Rate Senior Notes due 2033
(the Senior Notes). The Senior Notes accrue interest at an annual rate of three-month LIBOR plus 11.435 basis points and may be put to the Company at par on June 5, 2008. Contingent interest payments up to 4 percent are required if the Senior Notes
are not rated at certain levels by rating agencies. At December 31, 2007, the Company was not in violation of any of its debt covenants.</FONT></P> <P align=justify><FONT face=serif size=1>92</FONT></P> <HR align=center width="100%" noShade SIZE=2>
<PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Aggregate annual maturities on long-term debt obligations (based on final maturity dates) at December 31, 2007, were as follows:</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="65%"><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=2><FONT face=serif size=2>2008</FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=2><FONT face=serif size=2>2009</FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=2><FONT face=serif size=2>2010</FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=2><FONT face=serif size=2>2011</FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=2><FONT face=serif size=2>2012</FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=2><FONT face=serif size=2>Thereafter</FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=2><FONT face=serif size=2>Total</FONT>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="65%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>American Express Company (Parent Company only)</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>&nbsp;$</STRONG></FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>&#151;</FONT></B></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;$</FONT></B></FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>500</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp; $</STRONG></FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>&#151;</FONT></B></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp; $</FONT></B></FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>400</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp; $</STRONG></FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>&#151;</FONT></B></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp; $</FONT></B></FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>5,846</FONT></B></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp; $</FONT></B></FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>6,746</FONT></B></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="65%"><FONT size=2><FONT face=serif size=2>American Express Travel Related Services</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="65%">&nbsp; &nbsp;&nbsp; <FONT size=2><FONT face=serif size=2>Company, Inc.</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>&#151;</FONT></B></FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>800</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>&#151;</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>1,200</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>&#151;</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>&#151;</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>2,000</FONT></B></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="65%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>American Express Credit Corporation</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>7,411</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>5,634</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>2,515</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>1,554</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>4,738</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>412</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>22,264</FONT></B></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="65%"><FONT size=2><FONT face=serif size=2>American Express Centurion Bank</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>1,645</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>4,777</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>2,204</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>&#151;</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>1,177</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>1,296</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>11,099</FONT></B></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="65%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>American Express Bank, FSB</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>2,715</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>3,265</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>1,055</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>&#151;</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>1,577</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>1,297</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>9,909</FONT></B></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="65%"><FONT size=2><FONT face=serif size=2>American Express Receivables Financing</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="65%"><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face=serif size=2>Corporation V LLC</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>&#151;</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>&#151;</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>1,560</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>&#151;</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>1,560</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>&#151;</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>3,120</FONT></B></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="65%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Other</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>44</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>13</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>&#151;</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>&#151;</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>&#151;</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>90</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>147</FONT></B></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="65%"><FONT size=2><FONT face=serif size=2>Total</FONT>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>11,815</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>14,989</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>7,334</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>3,154</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>9,052</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>8,941</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>55,285</FONT></B></FONT></TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>As of December 31, 2007 and 2006, the
Company maintained total bank lines of credit, including lines supporting commercial paper borrowings, of $12.4 billion and $11.6 billion, respectively, of which $9.0 billion and $8.9 billion were unutilized as of December 31, 2007 and 2006,
respectively.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company paid total interest primarily related to short- and long-term debt, corresponding interest rate products and customer deposits of $4.3 billion, $3.2 billion,
and $2.4 billion in 2007, 2006, and 2005, respectively (including amounts related to discontinued operations of $0.6 billion, $0.4 billion, and $0.4 billion in 2007, 2006, and 2005, respectively).</FONT></P> <P align=justify><B><FONT face=serif
size=1><FONT size=2>NOTE 10 OTHER LIABILITIES</FONT></FONT></B></P> <P align=justify><FONT face=serif size=2>The following is a summary of other liabilities at December 31:</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=2>&nbsp;</FONT> <FONT size=2><B><FONT face=serif size=2>2007</FONT></B></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=2><FONT face=serif size=2>2006</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Membership Rewards liabilities</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $</FONT></B></FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>4,785</FONT></B></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG> $</FONT></FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>3,760</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="90%"><FONT size=2><FONT face=serif size=2>Employee-related liabilities</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>1,887</FONT></B></FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>1,893</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Deferred card fees, net</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>1,126</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>987</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><FONT size=2><FONT face=serif size=2>Other</FONT><SUP><FONT face=serif size=2>(b)</FONT></SUP>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2>&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>6,161</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>5,291</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="90%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Total</FONT>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>13,959</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>11,931</FONT></FONT></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)</FONT></TD>
<TD vAlign=top noWrap>&nbsp;&nbsp;</TD>
<TD style="TEXT-ALIGN: justify" vAlign=top width="100%"><FONT face=serif size=1>Employee-related liabilities comprised principally of employee benefit plan obligations and incentive compensation.</FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(b)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD style="TEXT-ALIGN: justify" vAlign=top width="100%"><FONT face=serif size=1>Other consists principally of rebate accruals, advertising and promotion, minority interest in subsidiaries, client incentive accruals, and dividends
payable.</FONT></TD></TR></TABLE> <P align=justify><B><FONT face=serif size=1>DEFERRED CARD FEES<BR></FONT></B><FONT face=serif size=2>The carrying amount of deferred card and other fees, net of direct acquisition costs and reserves for membership
cancellations as of December 31 were as follows:</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT size=2><B><FONT face=serif size=2>2007</FONT></B></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT size=2><FONT face=serif size=2>2006</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Deferred card and other fees</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $</FONT></B></FONT></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>1,410</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG> $</FONT></FONT></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>1,252</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="90%"><FONT size=2><FONT face=serif size=2>Deferred direct acquisition costs</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT size=2><B><FONT face=serif size=2>(159</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2><B><FONT face=serif size=2>)</FONT></B>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>(145</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>)</FONT>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Reserves for membership cancellations</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>(125</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>)</FONT></B>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>(120</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>)</FONT>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="90%"><FONT size=2><FONT face=serif size=2>Deferred card fees and other, net of direct</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="90%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>acquisition costs and reserves&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT size=2><B><FONT face=serif size=2>1,126</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT size=2><FONT face=serif size=2>987</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR></TABLE><BR> <P align=justify><B><FONT face=serif size=1><FONT size=2>NOTE 11 COMMON AND PREFERRED SHARES</FONT></FONT></B></P> <P align=justify><FONT face=serif size=2>The Company
has a share repurchase program to return equity capital in excess of business needs to shareholders. The share repurchases both offset the issuance of new shares as part of employee compensation plans and reduce the number of shares outstanding. At
December 31, 2007, the Company has 105 million shares remaining under the share repurchase authorizations. Such authorizations do not have an expiration date, and at present, there is no intention to modify or otherwise rescind the current
authorizations. The Company retires shares upon being repurchased (except for approximately 500,000 shares held as treasury shares at December 31, 2007), and are excluded from the shares outstanding in the table below. There were no shares held in
treasury as of December 31, 2006 and 2005.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The following table shows authorized shares and provides a reconciliation of common shares issued and outstanding:</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><I><FONT face=serif size=1>(Millions, except where indicated)</FONT></I>&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>2007</FONT></B></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>2006</FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>2005</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2>Common shares authorized <EM>(billions)</EM><SUP><FONT face=serif size=2>(a)</FONT></SUP>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>3.6</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>3.6</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>3.6</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT size=2>Shares issued and outstanding at <FONT face=serif size=2>beginning of year</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>&nbsp;&nbsp; 1,199</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2><STRONG>&nbsp;&nbsp;</STRONG> 1,241</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2><STRONG>&nbsp;&nbsp;</STRONG> 1,249</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Repurchases of common shares</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>(60</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>)</FONT></B>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>(75</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>)</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>(34</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>)</FONT>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT size=2><FONT face=serif size=2>Acquisition of Harbor Payments</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>&#151;</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>2</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>&#151;</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Other, primarily stock option exercises</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>19</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>31</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>26</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="84%"><FONT size=2><FONT face=serif size=2>Shares issued and outstanding at end of year</FONT>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>1,158</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp;&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>1,199</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp;&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><FONT face=serif size=2>1,241</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)</FONT></TD>
<TD vAlign=top noWrap>&nbsp;&nbsp;</TD>
<TD style="TEXT-ALIGN: justify" vAlign=top width="100%"><FONT face=serif size=1>Of the common shares authorized but unissued at December 31, 2007, approximately 151 million shares were reserved for issuance for employee stock, employee benefit and
dividend reinvestment plans.</FONT></TD></TR></TABLE> <P align=justify><FONT face=serif size=2>The Board of Directors is authorized to permit the Company to issue up to 20 million preferred shares at a par value of $1.67 without further shareholder
approval.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>At December 31, 2007 and 2006, no preferred shares had been issued.</FONT></P> <P align=right><FONT face=serif size=1>93</FONT></P> <HR align=center width="100%" noShade
SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><B><FONT face=serif
size=1><FONT size=2>NOTE 12 DERIVATIVES AND HEDGING ACTIVITIES</FONT></FONT></B></P> <P align=justify><FONT face=serif size=2>The Company uses derivative financial instruments to manage exposure to various market risks, such as changes in benchmark
interest rates and foreign exchange rates. These instruments enable end users to increase, reduce, or alter exposure to various market risks and, for that reason, are an integral component of the Company&#146;s market risk and related
asset/liability management strategy and processes. The value of these derivative instruments is derived from an underlying variable or multiple variables, including interest rate, foreign exchange, and equity indices or prices. Overall market risk
exposures are monitored and managed by the Market Risk Committee, guided by Board-approved policies covering derivative financial instruments, funding, and investments.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>For the
Company&#146;s charge card and fixed-rate lending products, interest rate exposure is managed by using fixed-rate debt and derivative instruments, primarily interest rate swaps, to achieve a targeted mix of fixed and floating rate funding. The
Company&#146;s strategy is to lengthen the maturity of interest </FONT><FONT face=serif size=2>rate hedges in periods of low interest rates and to shorten their maturity in periods of high interest rates. For the majority of its cardmember loans,
which are linked to a floating rate base and generally reprice each month, the Company uses floating rate funding. The Company regularly reviews its strategy and may modify it based on market conditions.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT
face=serif size=2>Credit risk associated with the Company&#146;s derivatives is limited to the risk that a derivative counterparty will not perform in accordance with the terms of the contract. To mitigate the risk, counterparties are required to be
pre-approved and rated as investment grade. Counterparty risk exposures are monitored by the Company&#146;s Institutional Risk Management Committee (IRMC). The IRMC formally reviews large institutional exposures to ensure compliance with
Enterprise-wide Risk Management Committee guidelines and procedures and determines the risk mitigation actions, when necessary. Additionally, the Company may, from time to time, enter into master netting agreements where practical.</FONT></P> <P
align=justify><FONT face=serif size=2>The following table summarizes the total fair value, excluding interest accruals, of derivative product assets and liabilities at December 31:</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%"><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=5><FONT size=2><B><FONT face=serif size=2>2007</FONT></B></FONT><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=5><FONT size=2><FONT face=serif size=2>2006</FONT></FONT><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=serif size=1>Assets</FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=serif size=1>Liabilities</FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=serif size=1>Assets</FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=serif size=1>Liabilities</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Cash flow hedges</FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<STRONG>$</STRONG></FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>11</FONT></B></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<STRONG>$</STRONG></FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>122</FONT></B></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$</FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>64</FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $</FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>21</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%"><FONT size=2><FONT face=serif size=2>Fair value hedges</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>114</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>&#151;</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>&#151;</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>13</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Net investment hedges</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>62</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>2</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>5</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>14</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%"><FONT size=2><FONT face=serif size=2>Derivatives not designated as hedges</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>61</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>46</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>25</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>13</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="88%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Total fair value, excluding interest accruals</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>248</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>170</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>94</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>61</FONT></FONT></TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>The following table summarizes the
income effects of derivatives for the years ended December 31:</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%"><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;<STRONG>2007</STRONG></FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT size=1><FONT face=serif size=2>&nbsp;&nbsp;2006</FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;2005</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Cash flow hedges, net of tax</FONT><SUP><FONT face=serif size=2>(a):</FONT></SUP>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%">&nbsp; &nbsp;&nbsp; <FONT size=2><FONT face=serif size=2>Ineffective net (losses) gains</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2><STRONG>$</STRONG></FONT></FONT></TD>
<TD noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>(1</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2><B><FONT face=serif size=2>)</FONT></B>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>(1</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>)</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;$</FONT></FONT></TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>2</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face=serif size=2>Gains (losses) on forecasted transactions no longer probable to occur</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><STRONG><FONT size=2>$</FONT></STRONG></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>&#151;</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>4</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>(1</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>)</FONT>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%"><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face=serif size=2>Reclassification of realized gains (losses) from other comprehensive (loss) income</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>30</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>158</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>44</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR>
<TR>
<TD width="100%" colSpan=13><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Fair value hedges, net of tax</FONT><SUP><FONT face=serif size=2>(a):</FONT></SUP>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%"><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face=serif size=2>Ineffective net gains</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><STRONG><FONT size=2>$</FONT></STRONG></TD>
<TD noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>&#151;</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>(1</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2><FONT face=serif size=2>)</FONT>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2>$</FONT></TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>&#151;</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR>
<TR>
<TD width="100%" colSpan=13><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Net investment hedges, net of tax:</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="88%"><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face=serif size=2>Reclassification of loss from cumulative translation adjustment as a result of sales of
foreign entities</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>(3</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2><B><FONT face=serif size=2>)</FONT></B>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><STRONG><FONT size=2>$</FONT></STRONG></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>(110</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)<SUP>(b)</SUP></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>&#151;</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp; </FONT></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)</FONT></TD>
<TD vAlign=top noWrap>&nbsp;&nbsp;</TD>
<TD style="TEXT-ALIGN: justify" vAlign=top width="100%"><FONT face=serif size=1>There were no (losses) gains due to exclusion of any component of derivative instruments from the assessment of hedge effectiveness for 2007, 2006, and
2005.</FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(b)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD style="TEXT-ALIGN: justify" vAlign=top width="100%"><FONT face=serif size=1>Represents the sale of Brazil and certain other dispositions.</FONT></TD></TR></TABLE> <P align=justify><FONT face=serif size=1>94</FONT></P> <HR align=center
width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><B><FONT face=serif size=1>CASH
FLOW HEDGES<BR></FONT></B><FONT face=serif size=2>A cash flow hedge is a derivative designated to hedge the exposure of variable future cash flows attributable to a particular risk of an existing recognized asset or liability, or a forecasted
transaction. The Company hedges existing long-term variable-rate debt, the rollover of short-term debt and the anticipated forecasted issuance of additional funding through the use of derivative instruments, primarily interest rate swaps. These
derivative instruments effectively fix the interest expense for the duration of the swap.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In the normal course of business, as derivatives mature, the Company expects to reclassify $79
million of net pretax losses on derivative instruments from accumulated other comprehensive (loss) income to earnings during the next 12 months. In the event that cash flow hedge accounting is no longer applied (i.e., the Company de-designates a
derivative as a hedge, a hedge is no longer considered to be highly effective, or the forecasted transaction being hedged is no longer probable of occurring), the reclassification from accumulated other comprehensive (loss) income into earnings may
be accelerated and all future market value fluctuations of the derivative will be reflected in earnings.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Currently, the longest period of time over which the Company is hedging exposure
to variability in future cash flows for forecasted transactions is approximately two years, which is related to bank notes. </FONT></P> <P align=justify><B><FONT face=serif size=1>FAIR VALUE HEDGES<BR></FONT></B><FONT face=serif size=2>A fair value
hedge is a derivative designated to hedge the exposure of future changes in the fair value of an asset or a liability, or an identified portion thereof that is attributable to a particular risk. The Company is exposed to interest rate risk
associated with its fixed-rate long-term debt and fixed-rate corporate debt securities. The Company uses interest rate swaps to convert certain fixed-rate long-term debt to floating rate at the time of issuance. From time to time, the Company may
enter into interest rate swaps to hedge its exposure related to fixed-rate corporate debt securities. </FONT></P> <P align=justify><B><FONT face=serif size=1>NET INVESTMENT HEDGES<BR></FONT></B><FONT face=serif size=2>A net investment hedge in a
foreign operation is a derivative used to hedge future changes in currency exposure of a net investment in a foreign operation. The Company designates foreign currency derivatives, primarily forward agreements, as hedges of net investments in
certain foreign operations. These derivatives reduce exposure to changes in currency exchange rates on the Company&#146;s investments in non-U.S. subsidiaries.</FONT></P> <P align=justify><B><FONT face=serif size=1>DERIVATIVES NOT DESIGNATED AS
HEDGES<BR></FONT></B><FONT face=serif size=2>The Company has derivatives that act as economic hedges and that either do not qualify or are not designated for hedge accounting treatment. Foreign currency transactions and non-U.S. dollar cash flow
exposures may from time to time be partially or fully economically hedged through foreign currency contracts, primarily forward contracts, foreign currency options, and cross-currency swaps. These hedges generally mature within one year. Foreign
currency contracts involve the purchase and sale of a designated currency at an agreed upon rate for settlement on a specified date. From time to time, the Company may enter into interest rate swaps to specifically manage funding costs related to
its proprietary card business.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>The following table provides the total fair value, excluding accruals, of these derivative products assets and liabilities as of December
31:</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%"><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=5><FONT size=2><B><FONT face=serif size=2>2007</FONT></B> </FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=5><FONT size=2><FONT face=serif size=2>2006</FONT> </FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%">&nbsp; </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=serif size=1>Assets</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=serif size=1>Liabilities</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=serif size=1>Assets</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=serif size=1>Liabilities</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Foreign currency transactions</FONT>&nbsp; </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <STRONG>$</STRONG></FONT> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>32</FONT></B> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <STRONG>$</STRONG></FONT> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>38</FONT></B> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $</FONT> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>13</FONT> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $</FONT> </FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>3</FONT> </FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="88%"><FONT size=2><FONT face=serif size=2>Interest rate swaps</FONT>&nbsp; </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>29</FONT></B> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>8</FONT></B> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>$</FONT> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>12</FONT> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>$</FONT> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>10</FONT> </FONT></TD></TR></TABLE><BR> <P align=justify><B><FONT face=serif size=1>NOTE 13 GUARANTEES</FONT></B></P> <P
align=justify><FONT face=serif size=2>The Company provides cardmember protection plans that cover losses associated with purchased products, as well as other guarantees in the ordinary course of business that are within the scope of FASB Financial
Interpretation No. 45, &#147;Guarantor&#146;s Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others,&#148; (FIN 45). For the Company, FIN 45 guarantees primarily consist of card and travel
protection programs, including those that (1) cancel and request replacements of lost or stolen cards, and provide for fraud liability coverage (Credit Card Registry); (2) protect eligible purchases made with the card against accidental damage or
theft for up to 90 days from the date of purchase (Purchase Protection); (3) provide account protection in the event that a cardmember is unable to make payments on the account due to unforeseen hardship (Account Protection); (4) protect cardmembers
against billing disputes with the merchant, primarily for non-delivery of goods and services (Merchant Protection) (e.g., usually in the event of bankruptcy or liquidation of the merchant. In the event that a dispute is resolved in the
cardmember&#146;s favor, the Company will credit the cardmember account for the amount of the purchase and will seek recovery from the merchant. If the Company is unable to collect the amount from the merchant, it will bear the loss for the amount
credited to the cardmember.); and (5) indemnify cardmembers against losses due to lost baggage while traveling (Baggage Protection).</FONT></P> <P align=right><FONT face=serif size=1>95</FONT></P> <HR align=center width="100%" noShade SIZE=2>
<PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The following table provides information related to such guarantees as of December 31:</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="87%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=5><FONT size=2><B><FONT face=serif size=2>2007</FONT></B></FONT><FONT size=2></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=5><FONT size=2><FONT face=serif size=2>2006</FONT></FONT><FONT size=2></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><FONT size=1>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%" colSpan=2><FONT size=1><FONT face=serif size=1>Maximum</FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=1>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%" colSpan=2><FONT size=1><FONT face=serif size=1>Maximum</FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=1>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><FONT size=1>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%" colSpan=2><FONT size=1><FONT face=serif size=1>amount of</FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%" colSpan=2><FONT size=1>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%" colSpan=2><FONT size=1><FONT face=serif size=1>amount of</FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%" colSpan=2><FONT size=1>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><FONT size=1>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%" colSpan=2><FONT size=1><FONT face=serif size=1>undiscounted</FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%" colSpan=2><FONT size=1><FONT face=serif size=1>Amount</FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%" colSpan=2><FONT size=1><FONT face=serif size=1>undiscounted</FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%" colSpan=2><FONT size=1><FONT face=serif size=1>Amount</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><FONT size=1>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%" colSpan=2><FONT size=1><FONT face=serif size=1>future</FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%" colSpan=2><FONT size=1><FONT face=serif size=1>of related</FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%" colSpan=2><FONT size=1><FONT face=serif size=1>future</FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%" colSpan=2><FONT size=1><FONT face=serif size=1>of related</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><FONT size=1>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%" colSpan=2><FONT size=1><FONT face=serif size=1>payments</FONT><SUP><FONT face=serif size=1>(a)</FONT></SUP></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%" colSpan=2><FONT size=1><FONT face=serif size=1>liability</FONT><SUP><FONT face=serif size=1>(b)</FONT></SUP></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%" colSpan=2><FONT size=1><FONT face=serif size=1>payments</FONT><SUP><FONT face=serif size=1>(a)</FONT></SUP></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%" colSpan=2><FONT size=1><FONT face=serif size=1>liability</FONT><SUP><FONT face=serif size=1>(b)</FONT></SUP></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%"><FONT size=1><FONT face=serif size=1>Type of Guarantee</FONT></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT size=1><I><FONT face=serif size=1>(Billions)</FONT></I></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT size=1><I><FONT face=serif size=1>(Millions)</FONT></I></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT size=1><I><FONT face=serif size=1>(Billions)</FONT></I></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT size=1><I><FONT face=serif size=1>(Millions)</FONT></I></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Card and travel operations</FONT><SUP><FONT face=serif size=2>(c)</FONT></SUP>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <STRONG>$</STRONG></FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>77</FONT></B></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <STRONG>$</STRONG></FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>67</FONT></B></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $</FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>75</FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $</FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>119</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%"><FONT size=2><FONT face=serif size=2>Other</FONT><SUP><FONT face=serif size=2>(d)</FONT></SUP>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>1</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>48</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>1</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>34</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="87%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Total</FONT>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>78</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>115</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>76</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>153</FONT></FONT></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)</FONT></TD>
<TD vAlign=top noWrap>&nbsp;&nbsp;</TD>
<TD style="TEXT-ALIGN: justify" vAlign=top width="100%"><FONT face=serif size=1>Calculated using Management&#146;s best estimate of maximum exposure under the hypothetical scenario that all eligible claims (out of total billed business volumes)
occur within the next 12 months. The Merchant Protection guarantee is calculated using Management&#146;s best estimate of maximum exposure based on all eligible claims as measured against annual billed business volumes.</FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(b)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD style="TEXT-ALIGN: justify" vAlign=top width="100%"><FONT face=serif size=1>Included as part of other liabilities on the Company&#146;s Consolidated Balance Sheets. The decrease in the liability from December 31, 2006 to December 31, 2007,
results substantially from a reduction in merchant-related reserves primarily related to the airline industry.</FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(c)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD style="TEXT-ALIGN: justify" vAlign=top width="100%"><FONT face=serif size=1>Includes Credit Card Registry, Merchandise Protection, Account Protection, Merchant Protection and Baggage Protection. The Company generally has no collateral or other
recourse provisions related to these guarantees.</FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(d)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD style="TEXT-ALIGN: justify" vAlign=top width="100%"><FONT face=serif size=1>Other primarily relates to real estate, tax, and Visa settlement indemnifications as well as contingent consideration obligations, among other guarantees provided in the
ordinary course of business.</FONT></TD></TR></TABLE> <P align=justify><B><FONT face=serif size=1><FONT size=2>NOTE 14 COMMITMENTS AND CONTINGENCIES</FONT></FONT></B></P> <P align=justify><FONT face=serif size=2>The Company and its subsidiaries are
involved in a number of legal and arbitration proceedings, including class actions, concerning matters arising in connection with the conduct of their respective business activities. The Company believes it has meritorious defenses to each of these
actions and intends to defend them vigorously. In the course of its business, the Company and its subsidiaries are also subject to governmental examinations, information gathering requests, subpoenas, inquiries and investigations. The Company
believes that it is not a party to, nor are any of its properties the subject of, any pending legal, arbitration, regulatory, tax or investigative proceedings that would have a material adverse effect on the Company&#146;s consolidated financial
condition or liquidity. However, it is possible that the outcome of any such proceedings could have a material impact on results of operations in any particular reporting period as the proceedings are
resolved.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>On November 7, 2007, the Company announced that it entered into an agreement with Visa Inc., Visa USA, and Visa International (collectively Visa) to remove Visa and certain of
its member banks as defendants in the Company&#146;s lawsuit against MasterCard International, Inc. (MasterCard), Visa and their member banks. The lawsuit alleges MasterCard, Visa and their member banks illegally blocked the Company from the
</FONT><FONT face=serif size=2>bank-issued card business in the United States. The agreement has been approved by Visa USA&#146;s member banks.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Under terms of the settlement agreement
reached with Visa, the Company will receive an aggregate maximum payment of $2.25 billion. The initial amount due March 31, 2008, of $1.13 billion ($700 million after-tax) was recorded as a gain in the fourth quarter of 2007. The remaining payments,
payable in installments of up to $70 million ($43 million after-tax) per quarter over the next four years, are subject to achieving certain quarterly performance criteria within the U.S. Global Network Services business the Company is optimistic it
will achieve.</FONT><B><FONT face=serif size=2></FONT></B> <FONT face=serif size=2>Given the performance criteria associated with the installment payments, the Company will recognize these payments in income when the performance criteria is
achieved. Related to the settlement, the Company recognized litigation expense of $74 million ($46 million after-tax). Both the Visa settlement gain and the related litigation expense are included in other, net expenses within continuing operations
in the Consolidated Statements of Income and within the Corporate &amp; Other segment.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company also has contingent obligations to make payments under contractual agreements entered
into as part of the ongoing operation of the Company&#146;s business, primarily with co-brand partners. The contingent obligations under such arrangements were approximately $4.3 billion as of December 31,
2007.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company leases certain facilities and equipment under noncancelable and cancelable agreements. Total rental expense amounted to $300 million, $297 million, and $353 million in
2007, 2006, and 2005, respectively. At December 31, 2007, the minimum aggregate rental commitment under all noncancelable operating leases (net of subleases of $28 million) was:</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%"><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="4%" colSpan=2>&nbsp; &nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>2008</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $</FONT></B></FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>247</FONT></B></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%"><FONT size=2><FONT face=serif size=2>2009</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>232</FONT></B></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>2010</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>199</FONT></B></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%"><FONT size=2><FONT face=serif size=2>2011</FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>162</FONT></B></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>2012</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>150</FONT></B></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%"><FONT size=2><FONT face=serif size=2>Thereafter</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2>&nbsp;&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>1,688</FONT></B></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="94%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Total</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>2,678</FONT></B></FONT></TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>Obligations under capital
leases or other similar arrangements entered into by the Company are not material.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>During 2005, the Company completed sale-leaseback transactions on several of its owned properties
which were sold at fair value. These transactions are included in total operating lease obligations. For 2005, the proceeds totaled $172 million, and pretax gains, net of closing costs, were $46 million. The pretax gains have been deferred and are
amortized over the ten-year term of the operating leasebacks as a reduction to rental expense.</FONT></P> <P align=justify><FONT face=serif size=1>96</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif
size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>A 2004&nbsp;sale-leaseback transaction has been accounted for as a financing because of certain terms contained in the lease agreement. The $95 million in proceeds from this
transaction has been classified as long-term debt, and the balance was $90 million and $92 million as of December 31, 2007 and 2006, respectively. At December 31, 2007, the Company&#146;s minimum aggregate rental commitment under this transaction is
approximately $6 million per annum from 2007 through 2012 and $13 million thereafter.<BR></FONT><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>There were no sale-leaseback transactions in 2007 or 2006.</FONT></P> <P
align=justify><B><FONT face=serif size=1><FONT size=2>NOTE 15 FAIR VALUES OF FINANCIAL INSTRUMENTS</FONT></FONT></B></P> <P align=justify><FONT face=serif size=2>SFAS No. 107, &#147;Disclosures About Fair Value of Financial Instruments&#148;,
requires the disclosure of the estimated fair value of financial instruments. A financial instrument is defined as cash, evidence of an ownership in an entity, or a contract between two entities to deliver cash or another financial instrument or to
exchange other financial instruments. The disclosure requirements of SFAS No. 107 exclude leases, affiliate investments, pension and benefit obligations, insurance contracts, and all non-financial
instruments.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The following table discloses fair value information for the Company&#146;s financial instrument</FONT><B><FONT face=serif size=2></FONT></B> <FONT face=serif size=2>assets
and liabilities, included in the scope of SFAS No. 107, as of December 31:</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%"><FONT size=1><I><FONT face=serif size=1>(Billions)</FONT></I>&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=5><FONT size=2><B><FONT face=serif size=2>2007</FONT></B></FONT><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=5><FONT size=2><FONT face=serif size=2>2006</FONT></FONT><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%" colSpan=2><FONT size=1><FONT face=serif size=1>Carrying</FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%" colSpan=2><FONT size=1><FONT face=serif size=1>Fair</FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%" colSpan=2><FONT size=1><FONT face=serif size=1>Carrying</FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%" colSpan=2><FONT size=1><FONT face=serif size=1>Fair</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT size=1><FONT face=serif size=1>Value</FONT></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT size=1><FONT face=serif size=1>Value</FONT></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT size=1><FONT face=serif size=1>Value</FONT></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT size=1><FONT face=serif size=1>Value</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>Financial Instrument Assets:</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Assets for which carrying values equal or approximate fair <FONT face=serif>value</FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <STRONG>$</STRONG></FONT></FONT></TD>
<TD noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>71</FONT></B></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <STRONG>$</STRONG></FONT></FONT></TD>
<TD noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>71</FONT></B></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $</FONT></FONT></TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>63</FONT></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $</FONT></FONT></TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>64</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2>Loans</FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>53</FONT></B></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>54</FONT></B></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>43</FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>43</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><FONT size=2><B><FONT face=serif size=2>Financial Instrument Liabilities:</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT><FONT size=2>Liabilities for which <FONT face=serif>carrying values equal </FONT><FONT face=serif>or approximate fair
</FONT><FONT face=serif>value</FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>59</FONT></B></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>58</FONT></B></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>53</FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>53</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%"><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2>Long-term debt</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>55</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>54</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>43</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>43</FONT></FONT></TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>The fair values of these financial instruments are
estimates based upon market conditions and perceived risks as of December 31, 2007 and 2006 and require management judgment. These figures may not be indicative of their future fair values. The fair value of the Company cannot be estimated by
aggregating the amounts presented.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The following methods were used to determine estimated fair values.</FONT></P> <P align=justify><B><FONT face=serif size=1>FINANCIAL INSTRUMENT
LIABILITIES FOR WHICH CARRYING VALUES EQUAL OR APPROXIMATE FAIR VALUE<BR></FONT></B><FONT face=serif size=2>Financial assets for which carrying values equal or approximate fair values include cash and cash equivalents, cardmember receivables,
accrued interest, and certain other assets. For these assets, the carrying values approximate fair value because these are short-term in duration or variable rate in nature.</FONT></P> <P align=justify><FONT face=serif
size=2><STRONG>Investments</STRONG><BR></FONT><FONT face=serif size=2>Investments are recorded at fair value on the Consolidated Balance Sheets with unrealized gains and losses recorded in accumulative other comprehensive income (loss) or earnings
depending upon the classification of securities as Available-for-Sale or Trading. The recognized gains and losses are recognized in the Consolidated Statements of Income upon disposition of the securities or when management determines that a decline
in value is other-than-temporary. See Note 4 for carrying and fair value information regarding investments.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Derivative Financial Instruments</STRONG><BR></FONT><FONT face=serif
size=2>Derivative financial instruments are recorded at fair value on the Consolidated Balance Sheets, with gains and losses recognized in the Consolidated Statements of Income or Consolidated Balance Sheets based upon the nature of the derivative.
See Note 12 for fair value information regarding derivative financial instruments.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Interest - Only Strip</STRONG><BR></FONT><FONT face=serif size=2>The Interest-only strip is also recorded
at fair value on the Consolidated Balance Sheets, with gains and losses recognized in the Consolidated Statements of Income. See Note 6 for additional information regarding the Interest-only strip.</FONT></P> <P align=justify><B><FONT face=serif
size=1>LOANS<BR></FONT></B><FONT face=serif size=2>For variable-rate loans that reprice within one year and for which there has been no significant change in counterparties&#146; creditworthiness, fair values approximate carrying values. The fair
values of all other loans are estimated using a discounted cash flow analysis, based on current interest rates for loans with similar terms to borrowers of similar credit quality. For collateral-dependent loans with significant credit deterioration,
fair values are based on estimates of collateral values.</FONT></P> <P align=justify><B><FONT face=serif size=1>FINANCIAL INSTRUMENT LIABILITIES FOR WHICH CARRYING VALUES EQUAL OR APPROXIMATE FAIR VALUE<BR></FONT></B><FONT face=serif
size=2>Financial liabilities for which carrying values equal or approximate fair values include accrued interest, customers&#146; deposits, Travelers Cheques outstanding, investment certificate reserves, short-term debt, and certain other
liabilities. For these liabilities, the carrying values approximate fair value because these are short-term in duration, variable rate in nature, or have no defined maturity.</FONT></P> <P align=right><FONT face=serif size=1>97</FONT></P> <HR
align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><B><FONT face=serif
size=1>LONG-TERM DEBT<BR></FONT></B><FONT face=serif size=2>For long-term debt, fair value is estimated using either quoted market prices or discounted cash flows based on the Company&#146;s current borrowing rates for similar types of borrowing.
For variable-rate long-term debt that reprices within one year, fair value approximates carrying value.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>See Note 13 for discussion of carrying and fair value information regarding
guarantees.</FONT></P> <P align=justify><B><FONT face=serif size=1><FONT size=2>NOTE 16 SIGNIFICANT CREDIT CONCENTRATIONS</FONT></FONT></B></P> <P align=justify><FONT face=serif size=2>Concentrations of credit risk exist when changes in economic,
industry or geographic factors similarly affect groups of counterparties whose aggregate credit exposure is material in relation to American Express&#146; total credit exposure. The Company&#146;s customers operate in diverse industries, economic
sectors and geographic regions.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The following table details the Company&#146;s maximum credit exposure by category, including the credit exposure associated with derivative financial
instruments, at December 31:</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"><I><FONT face=serif size=1>(Billions, except percentages)</FONT></I>&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT size=2>&nbsp;</FONT> <FONT size=2><B><FONT face=serif size=2>2007</FONT></B></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT size=2>&nbsp;</FONT> <FONT size=2><FONT face=serif size=2>2006</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>On-balance sheet:</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="93%">&nbsp; &nbsp;&nbsp; <FONT size=2><FONT face=serif size=2>Individuals</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>86</FONT></B></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>74</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face=serif size=2>Financial institutions</FONT><SUP><FONT face=serif size=2>(b)</FONT></SUP>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>16</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>10</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="93%"><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face=serif size=2>U.S. Government and agencies</FONT><SUP><FONT face=serif size=2>(c)</FONT></SUP>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>12</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>12</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%" bgColor=#c0c0c0><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face=serif size=2>All other</FONT><SUP><FONT face=serif
size=2>(d)</FONT></SUP>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>13</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>13</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"><FONT size=2><FONT face=serif size=2>Total on-balance sheet</FONT><SUP><FONT face=serif size=2>(e)</FONT></SUP>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>127</FONT></B></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </STRONG>$</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>109</FONT></FONT></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1pt solid" width="93%"><FONT size=2>&nbsp; </FONT></TD>
<TD width="1%"></TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%"></TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp; &nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="93%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Unused lines-of-credit-individuals</FONT><SUP><FONT face=serif size=2>(f)</FONT></SUP>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>265</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>220</FONT></FONT></TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD width="100%"><FONT face=serif size=1>Individuals primarily include cardmember loans and receivables.</FONT></TD></TR>
<TR>
<TD colSpan=2><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(b)</FONT></TD>
<TD width="100%"><FONT face=serif size=1>Financial institutions primarily include debt obligations of banks, broker-dealers, insurance companies and savings and loan associations.</FONT></TD></TR>
<TR>
<TD colSpan=2><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(c)</FONT></TD>
<TD width="100%"><FONT face=serif size=1>U.S. Government and agencies represent debt obligations of the U.S. Government and its agencies, states and municipalities, and government sponsored entities.</FONT></TD></TR>
<TR>
<TD colSpan=2><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(d)</FONT></TD>
<TD width="100%"><FONT face=serif size=1>All other primarily includes cardmember receivables from other corporate institutions.</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT size=1>&nbsp;</FONT></TD>
<TD width="100%"><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT size=1>(e)</FONT></TD>
<TD width="100%"><FONT size=1>Certain distinctions between categories require management judgment.</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT size=1>&nbsp;</FONT></TD>
<TD width="100%"><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT size=1>(f)</FONT></TD>
<TD width="100%"><FONT size=1>Because charge card products have no preset spending limit, the associated credit limit on cardmember receivables is not quantifiable. Therefore, the quantified unused line-of-credit amounts only includes the
approximate credit line available on cardmember loans (including&nbsp;both on-balance sheet loans and loans previously securitized).</FONT></TD></TR></TABLE><BR> <P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>At December 31,
2007, the Company&#146;s most significant concentration of credit risk was with individuals, including cardmember receivables and loans. These amounts are generally advanced on an unsecured basis. However, the Company reviews each potential
customer&#146;s credit application and evaluates the applicant&#146;s financial history and ability and willingness to repay. The Company also considers credit performance by customer tenure, industry, and geographic location in managing credit
exposure. The following table details the Company&#146;s cardmember lending and receivables exposure (including </FONT><FONT face=serif size=2>unused lines-of-credit on cardmember lending) in the United States and International, at December
31:</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%"><I><FONT face=serif size=1>(Billions, except percentages)</FONT></I>&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=right width="2%" colSpan=2><FONT size=2><B><FONT face=serif size=2>2007</FONT></B></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=right width="2%" colSpan=2><FONT size=2><FONT face=serif size=2>2006</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>On-balance sheet:</FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%">&nbsp; &nbsp;&nbsp; <FONT size=2><FONT face=serif size=2>United States</FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $</FONT></B></FONT></TD>
<TD noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>71</FONT></B></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </STRONG>$</FONT></FONT></TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>60</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%" bgColor=#c0c0c0><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face=serif size=2>International</FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>24</FONT></B></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>21</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%"><FONT size=2><FONT face=serif size=2>On-balance sheet</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>95</FONT></B></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>81</FONT></FONT></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Unused lines-of-credit-individuals:</FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%"><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face=serif size=2>United States</FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD align=right width="1%"><FONT size=2><B><FONT face=serif size=2>215</FONT></B></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD align=right width="1%"><FONT size=2><FONT face=serif size=2>180</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%" bgColor=#c0c0c0><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face=serif size=2>International</FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>50</FONT></B></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>40</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="94%"><FONT size=2><FONT face=serif size=2>Total</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%"><FONT size=2><B><FONT face=serif size=2>265</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><FONT face=serif size=2>$</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%"><FONT size=2><FONT face=serif size=2>220</FONT></FONT></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)</FONT></TD>
<TD vAlign=top noWrap>&nbsp;&nbsp;</TD>
<TD style="TEXT-ALIGN: justify" vAlign=top width="100%"><FONT face=serif size=1>Represents cardmember loans to individuals as well as receivables from individuals and&nbsp;corporate institutions as discussed in footnotes (a) and (d) from the
previous table.</FONT></TD></TR></TABLE> <P align=justify><B><FONT face=serif size=1>EXPOSURE TO AIRLINE INDUSTRY<BR></FONT></B><FONT face=serif size=2>Many industry analysts and some carriers have indicated that there could be significant
consolidation in the airline industry in 2008, particularly in the United States. The Company would not expect consolidation to have any significant effect on its merchant relationships with the airlines. However, airlines are also some of the most
important and valuable partners in the Company&#146;s Membership Rewards program. If a participating airline merged with an airline that did not participate in Membership Rewards, the combined airline would have to determine whether or not to
continue participation. Similarly, if one of the Company&#146;s co-brand airline partners merged with an airline that had a competing co-brand card, the combined airline would have to determine which co-brand cards it would offer. If a surviving
airline determined to withdraw from Membership Rewards or to cease offering an American Express co-brand card, the Company&#146;s business could be adversely affected. The Company has multiple co-brand relationships and rewards partners. The
Company&#146;s largest airline co-brand partner is Delta Air Lines (Delta). American Express&#146; Delta SkyMiles Credit Card co-brand portfolio accounts for approximately 5 percent of the Company&#146;s worldwide billed business and less than 15
percent of worldwide cardmember lending receivables.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Historically, the Company has not experienced significant revenue declines when a particular airline scales back or ceases
operations due to a bankruptcy or other financial challenges. This is because volumes generated by that airline are typically shifted to other participants in the industry that accept the Company&#146;s card products. Nonetheless, the Company is
exposed to business and credit risk in the airline industry primarily through business arrangements where the Company has remitted payment to the airline for a cardmember purchase of tickets that have not yet been used or &#147;flown.&#148; In the
event that the cardmember is not able to use the ticket and the Company, based on the facts and circumstances, credits the cardmember for the unused ticket, a potential credit exposure is created for the Company. This credit</FONT></P> <P
align=justify><FONT face=serif size=1>98</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><FONT face=serif
size=2>exposure is included in the maximum amount of undiscounted future payments disclosed in Note 13. Historically, even for an airline that is operating under bankruptcy protection, this type of exposure has not generated any significant losses
for the Company. The Company&#146;s goal in these distressed situations is to hold sufficient cash over time to ensure that upon liquidation, the cash held is equivalent to the credit exposure related to any unused
tickets.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>As part of Delta&#146;s decision to file for protection under Chapter 11 of the Bankruptcy Code during 2005, the Company lent funds to Delta as part of Delta&#146;s
post-petition, debtor-in-possession financing under the Bankruptcy Code. At December 31, 2006, the remaining principal balance under this facility was $176 million. Delta received final approval for its reorganization plan and emerged from
bankruptcy on April 30, 2007, and repaid the entire principal and interest outstanding at that time.</FONT></P> <P align=justify><B><FONT face=serif size=1><FONT size=2>NOTE 17 STOCK PLANS</FONT></FONT></B></P> <P align=justify><B><FONT face=serif
size=1>STOCK OPTION AND AWARD PROGRAMS<BR></FONT></B><FONT face=serif size=2>Under the 2007 Incentive Compensation Plan and previously under the 1998 Incentive Compensation Plan (the Plans), awards may be granted to officers and other key
individuals who perform services for the Company and its participating subsidiaries. These awards may be in the form of stock options, restricted stock awards or units</FONT><B><FONT face=serif size=2></FONT></B> <FONT face=serif size=2>(RSAs),
portfolio grants (PGs), and similar awards designed to meet the requirements of non-U.S. jurisdictions. The Company also has options that remain outstanding pursuant to a Directors&#146; Stock Option Plan that expired in
2003.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>For the Company&#146;s Plans, there were a total of 52 million, 66 million, and 71 million common shares unissued and available for grant at December 31, 2007, 2006, and 2005,
respectively, as authorized by the Company&#146;s Board of Directors and shareholders.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company granted a special stock option award to its Chief Executive Officer (CEO) in November
2007 that has performance-based and market-based conditions. This option award is separately described in the Stock Options with Performance-Based and Market-Based Conditions<B><FONT face=serif size=2></FONT></B> section below<B><FONT face=serif
size=2></FONT></B> and is excluded from the information and tables presented in the following paragraphs.</FONT><FONT face=serif size=2><BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>A summary of stock option and RSA activity as of
December 31, 2007, and changes during the year are presented below:</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="80%"><FONT size=1><I><FONT face=serif size=1>(Shares in thousands)</FONT></I>&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%" colSpan=5><FONT size=1><FONT face=serif size=1>Stock Options</FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%" colSpan=5><FONT size=1><FONT face=serif size=1>RSAs</FONT></FONT><FONT size=1>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="80%"><FONT size=1>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"></TD>
<TD noWrap align=right width="1%"><FONT size=1>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1>Weighted</FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"></TD>
<TD noWrap align=right width="1%"><FONT size=1>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1>Weighted</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="80%"><FONT size=1>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"></TD>
<TD noWrap align=right width="1%"><FONT size=1>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1>Average</FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"></TD>
<TD noWrap align=right width="1%"><FONT size=1>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1>Average</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="80%"><FONT size=1>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"></TD>
<TD noWrap align=right width="1%"><FONT size=1>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1>Exercise</FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"></TD>
<TD noWrap align=right width="1%"><FONT size=1>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1>Grant</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="80%"><FONT size=1>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=1><FONT face=serif size=1>Shares</FONT></FONT></TD>
<TD noWrap align=right width="1%"><FONT size=1>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1>Price</FONT></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=1><FONT face=serif size=1>Shares</FONT></FONT></TD>
<TD noWrap align=right width="1%"><FONT size=1>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1>Price</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="80%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Outstanding at December 31, 2006</FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>97,310</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>37.60</FONT></B></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>8,474</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; $</FONT></B></FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>45.87</FONT></B></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="80%"><FONT size=2><FONT face=serif size=2>Granted</FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>8,520</FONT></B></FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>57.93</FONT></B></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>3,232</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>57.89</FONT></B></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="80%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Exercised/vested</FONT></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; (17,996</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>)</FONT></B></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $</FONT></B></FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>34.80</FONT></B></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; (3,502</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>)</FONT></B></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>41.91</FONT></B></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="80%"><FONT size=2><FONT face=serif size=2>Forfeited/expired</FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>(2,628</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2><B><FONT face=serif size=2>)</FONT></B></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>46.71</FONT></B></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>(681</FONT></B></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2><B><FONT face=serif size=2>)</FONT></B></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>51.07</FONT></B></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="80%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Outstanding at December 31, 2007</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>85,206</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>39.93</FONT></B></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>7,523</FONT></B></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>52.38</FONT></B></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="80%"><FONT size=2><FONT face=serif size=2>Options exercisable at December 31, 2007</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>68,880</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><B><FONT face=serif size=2>$</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>36.82</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="3%"><FONT size=2>&nbsp;</FONT></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)</FONT></TD>
<TD vAlign=top noWrap>&nbsp;&nbsp;</TD>
<TD style="TEXT-ALIGN: justify" vAlign=top width="100%"><FONT face=serif size=1>At December 31, 2007, stock options outstanding and stock options exercisable had exercise prices ranging from $24.04 to $60.95 and $24.04 to $58.62,
respectively.</FONT></TD></TR></TABLE> <P align=justify><B><FONT face=serif size=1>STOCK OPTIONS<BR></FONT></B><FONT face=serif size=2>Each stock option has an exercise price equal to the market price of the Company&#146;s common stock on the date
of grant and a contractual term of 10 years from the date of grant. Vesting provisions relating to stock options are as follows:</FONT></P>
<TABLE style="LINE-HEIGHT: 14pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="25%"><B><FONT face=serif size=1>Grant Year</FONT></B>&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp; &nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="74%"><B><FONT face=serif size=1>Vesting Provisions</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="25%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>2003 and after</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="74%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Generally vest ratably at 25 percent per year beginning with the first anniversary of the grant date</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="25%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>2002</FONT>&nbsp;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="74%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Generally vest ratably at 33 1/3 percent per year beginning with the first anniversary of the grant date</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="25%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>2001</FONT>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="74%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Generally vest ratably at 33 1/3 percent per year beginning with the second anniversary of the grant
date</FONT></FONT></TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>The weighted-average remaining contractual life and intrinsic value (the amount by which the fair value of the Company&#146;s stock exceeds the exercise price of the
option) of the stock options outstanding and exercisable as of December 31, 2007, were as follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face=serif size=1>Outstanding</FONT></B></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face=serif size=1>Exercisable</FONT></B></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT size=2><FONT face=serif size=2>Aggregate intrinsic value</FONT> <I><FONT face=serif size=2>(millions)</FONT></I>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$</FONT></B></FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>1,077</FONT></B></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$</FONT></B></FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><B><FONT face=serif size=2>1,047</FONT></B></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%"><FONT size=2><FONT face=serif size=2>Weighted-average remaining contractual life</FONT> <I><FONT face=serif size=2>(years)</FONT></I>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>4.3</FONT></B></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=2><B><FONT face=serif size=2>3.4</FONT></B></FONT></TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>The intrinsic value for options exercised
during 2007, 2006, and 2005 was $463 million, $661 million, and $455 million, respectively</FONT><B><FONT face=serif size=2></FONT></B> <FONT face=serif size=2>(based upon the fair value of the Company&#146;s stock at the date of
exercise).</FONT></P> <P align=right><FONT face=serif size=1>99</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS <BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The fair value of each option is estimated on the date of grant using a Black-Scholes-Merton option-pricing model.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif
size=2>The following weighted-average assumptions are used for grants in 2007, 2006, and 2005, the majority of which were granted in the beginning of each year: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face=serif size=2>2006</FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=serif size=2>2005</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Dividend yield</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>1.0</FONT></B> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0><STRONG><FONT size=2>%</FONT></STRONG> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>0.9</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT size=2>%</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>0.9</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><FONT face=serif size=2>Expected volatility</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>19</FONT></B> </TD>
<TD noWrap align=left width="2%"><STRONG><FONT size=2>%</FONT></STRONG> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>23</FONT> </TD>
<TD noWrap align=left width="2%"><FONT size=2>%</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>24</FONT> </TD>
<TD noWrap align=left width="1%"><FONT size=2>%</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Risk-free interest rate</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>4.8</FONT></B> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0><STRONG><FONT size=2>%</FONT></STRONG> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>4.3</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT size=2>%</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>3.6</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="85%"><FONT size=2>Expected life of</FONT> <FONT face=serif size=2>stock option </FONT><I><FONT face=serif size=2>(years)</FONT></I> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>4.7</FONT></B> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>4.6</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>4.5</FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Weighted-average fair<FONT size=3> </FONT>value per option</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>13.39</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>12.76</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>12.59</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>The dividend yield assumes that the current dividend payout will continue with no anticipated changes. The expected volatility is based
on weighted historical and implied volatilities of the Company&#146;s common stock price. The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may occur. </FONT></P> <P
align=justify><FONT face=serif size=2><STRONG>Stock Options with Performance-Based and Market-Based Conditions</STRONG><BR></FONT><FONT face=serif size=2>On November 30, 2007, the Compensation and Benefits Committee of the Board of Directors (the
CBC) approved and granted to the Company&#146;s CEO a special</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>non-qualified stock option</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>award with
performance-based and market-based conditions. The grant is for 1,375,000 shares with an exercise price per share of $58.98 and a contractual term of 10 years from date of grant. The grant consists of four separate components, each allocated 25
percent of the total shares granted that individually cliff vest at the end of 6 years based on a specified performance-based or market-based metric being achieved for each component. Each component may individually pro-rata vest between years 4 and
6 if the Company&#146;s CEO retires during that period and the specified six-year performance or market metric is subsequently achieved.</FONT></P> <P align=justify><I><FONT face=serif size=2>Performance-Based Conditions<BR></FONT></I><FONT
face=serif size=2>Three of the stock award components have performance-based conditions that individually vest based on Company performance measured by revenue growth, earnings per share growth, or return on equity performance over the vesting
period. Compensation expense for the fair value of each of these three components will be recognized over the six-year vesting period when it is determined it is probable (as defined by SFAS 123(R)) the specific performance metric for the component
will be achieved.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The fair value of each performance-based option is estimated at the date of grant (November 30, 2007) using a Black-Scholes-Merton option-pricing model with the
following assumptions:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="91%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="5%" colSpan=2><B><FONT face=serif size=2>November 30,</FONT></B> </TD>
<TD noWrap align=left width="2%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="91%">&nbsp;</TD>
<TD noWrap align=right width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD noWrap align=left width="2%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=serif size=2>Dividend yield</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>1.2</FONT></B> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0><STRONG><FONT size=2>%</FONT></STRONG> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="91%"><FONT face=serif size=2>Expected volatility</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>23</FONT></B> </TD>
<TD noWrap align=left width="2%"><STRONG><FONT size=2>%</FONT></STRONG> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=serif size=2>Risk-free interest rate</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>4.0</FONT></B> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0><STRONG><FONT size=2>%</FONT></STRONG> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="91%"><FONT face=serif size=2>Expected life of stock option </FONT><I><FONT face=serif size=2>(years)</FONT></I> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>8</FONT></B> </TD>
<TD noWrap align=left width="2%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=serif size=2>Fair value per option</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>18.37</FONT></B> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="91%"><FONT face=serif size=2>Aggregate fair value </FONT><I><FONT face=serif size=2>(millions)</FONT></I> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>18.9</FONT></B> </TD>
<TD noWrap align=left width="2%"></TD></TR></TABLE><BR> <P align=justify><I><FONT face=serif size=2>Market-Based Conditions<BR></FONT></I><FONT face=serif size=2>The fourth stock award component has a market-based condition that vests based on the
</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>Company&#146;s total shareholder return as compared to the S&amp;P 500 Index. Compensation expense for the fair value of this component is fixed and is recognized ratably over the
six-year vesting period irrespective of the probability of the market metric being achieved as required by SFAS 123(R) for awards containing market-based conditions.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The fair value of
each market-based option</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>is estimated at the date of grant (November 30, 2007) using a Monte Carlo Valuation model with the following assumptions:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="92%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face=serif size=2>November 30,</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="92%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT face=serif size=2>Dividend yield</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>1.2</STRONG></FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>%</STRONG></FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="92%"><FONT face=serif size=2>Expected volatility &#150; Company</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2><STRONG>27</STRONG></FONT> </TD>
<TD noWrap align=left width="1%"><FONT size=2><STRONG>%</STRONG></FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT face=serif size=2>Expected volatility &#150; S&amp;P 500 Index</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>16</STRONG></FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>%</STRONG></FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="92%"><FONT face=serif size=2>Risk-free interest rate</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2><STRONG>4.6</STRONG></FONT> </TD>
<TD noWrap align=left width="1%"><FONT size=2><STRONG>%</STRONG></FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT size=2>Expected life of</FONT> <FONT face=serif size=2>stock option </FONT><I><FONT face=serif size=2>(years)</FONT></I> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>8</STRONG></FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="92%"><FONT face=serif size=2>Fair value per option</FONT> </TD>
<TD noWrap align=right width="2%">&nbsp;</TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2><STRONG>$</STRONG></FONT> </TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2><STRONG>17.25</STRONG></FONT> </TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="92%" bgColor=#c0c0c0><FONT face=serif size=2>Aggregate fair value </FONT><I><FONT face=serif size=2>(millions)</FONT></I> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>5.9</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>On January 31, 2008, the CBC approved and granted to the Company&#146;s CEO a second special grant of non-qualified stock
option</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>award with performance-based and market-based conditions. The number of shares underlying the option award, terms, and performance-based and market-based conditions are the
same as the option</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>award granted on November 30, 2007, except that the exercise price per share is $49.13.</FONT></P> <P align=justify><B><FONT face=serif size=1>RESTRICTED STOCK
AWARDS <BR></FONT></B><FONT face=serif size=2>RSAs granted in 2003 and thereafter vest ratably, substantially all at 25 percent per year, beginning with the first anniversary of the grant date. RSAs granted prior to 2003 generally cliff vest 4 years
after the grant date.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The aggregate intrinsic value of outstanding RSAs as of December 31, 2007, was approximately $391 million. The total fair value of shares vested during 2007, 2006,
and 2005 was $203 million, $176 million, and $290 million, respectively.</FONT></P> <P align=justify><FONT face=serif size=1>100</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS <BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><B><FONT face=serif
size=1>PORTFOLIO GRANTS<BR></FONT></B><FONT face=serif size=2>The Company awards cash-settled PGs that earn value based on the Company&#146;s financial performance and the Company&#146;s total shareholder return versus that of the S&amp;P 500 Index
(for PGs granted prior to 2006, the S&amp;P Financial Index was used).</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>These awards vest after a three-year performance period and are subject to adjustments and approval by
management and the CBC. The PGs are classified as liabilities and, therefore, the fair value is estimated at the date of grant and updated quarterly and recognized over the performance period. Cash paid upon vesting of PGs was $55 million, $56
million, and $66 million in 2007, 2006 and 2005, respectively.</FONT></P> <P align=justify><B><FONT face=serif size=1>SUMMARY OF STOCK PLAN EXPENSE<BR></FONT></B><FONT face=serif size=2>The components of the Company&#146;s pretax stock-based
compensation expense (net of cancellations) and associated income tax benefit are as follows: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="86%"><I><FONT face=serif size=1>(Millions)</FONT></I> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face=serif size=2>2006</FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face=serif size=2>2005</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="86%" bgColor=#c0c0c0><FONT face=serif size=2>Restricted stock awards</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>135</FONT></B> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>137</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>129</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="86%"><FONT face=serif size=2>Stock options</FONT><SUP><FONT face=serif size=2>(b)</FONT></SUP> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>78</FONT></B> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>80</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>77</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="86%" bgColor=#c0c0c0><FONT face=serif size=2>Portfolio grants</FONT><SUP><FONT face=serif size=2>(c)</FONT></SUP> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>62</FONT></B> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>54</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>24</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="86%"><FONT face=serif size=2>Performance/market-based stock<FONT size=3> </FONT>options and other</FONT><SUP><FONT face=serif size=2>(d)</FONT></SUP> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>1</FONT></B> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>4</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>2</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="86%" bgColor=#c0c0c0><FONT face=serif size=2>Total compensation expense,<FONT size=3> </FONT>pretax</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>276</FONT></B> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>275</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>232</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="86%"><FONT face=serif size=2>Income tax benefit</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>96</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>96</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>81</FONT> </TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD width="100%"><FONT face=serif size=1>As of December 31, 2007, the total unrecognized compensation cost related to unvested RSAs was $241 million. This cost is recognized on a straight-line basis over the weighted-average remaining vesting period
of 2.4 years.</FONT></TD></TR>
<TR>
<TD colSpan=2><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(b)</FONT></TD>
<TD width="100%"><FONT face=serif size=1>As of December 31, 2007, the total unrecognized compensation cost related to unvested options was $132 million. This cost is recognized on a straight-line basis over the weighted-average remaining vesting
period of 2.5 years.</FONT></TD></TR>
<TR>
<TD colSpan=2><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(c)</FONT></TD>
<TD width="100%"><FONT face=serif size=1>2005 expense represents PG expenses subsequent to July 1, 2005, when as a result of the adoption of SFAS No. 123(R), these awards were accounted for as stock-based compensation. PG expense for the first six
months of 2005 was $23 million.</FONT></TD></TR>
<TR>
<TD colSpan=2><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(d)</FONT></TD>
<TD width="100%"><FONT face=serif size=1>As of December 31, 2007, the total unrecognized compensation cost related to performance-based and market-based options was $18.9 million and $5.8 million, respectively.</FONT></TD></TR></TABLE> <P
align=justify><B><FONT face=serif size=2>NOTE 18 RETIREMENT PLANS </FONT></B></P> <P align=justify><FONT face=serif size=2>The Company sponsors defined benefit pension plans, defined contribution plans and defined benefit post-employment benefit
plans for its employees. The following table provides a summary of the total cost related to these plans:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="86%"><I><FONT face=serif size=1>(Millions)</FONT></I> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face=serif size=2>2006</FONT> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face=serif size=2>2005</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="86%" bgColor=#c0c0c0><FONT size=2>Defined benefit pension plan </FONT><FONT face=serif size=2>cost</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>28</FONT></B> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>124</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>112</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="86%"><FONT face=serif size=2>Defined contribution plan cost</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>173</FONT></B> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>106</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>109</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="86%" bgColor=#c0c0c0><FONT size=2>Defined benefit post-<FONT face=serif>employment </FONT></FONT><FONT face=serif size=2>plan cost</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>31</FONT></B> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>39</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>35</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="86%"><FONT face=serif size=2>Net periodic benefit cost</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>232</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>269</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>256</FONT> </TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD width="100%"><FONT face=serif size=1>Amendments to the U.S. defined benefit and defined contribution plans were effective in the third quarter of 2007. These amendments are further described in the next paragraph.</FONT></TD></TR></TABLE> <P
align=justify><FONT face=serif size=2>In January 2007, the Company approved amendments to the American Express Retirement Plan (the Plan) and the Supplemental Retirement Plan (the SRP) effective July 1, 2007, which provided that active participants
immediately vested in their accrued benefits, but no longer accrue future benefits other than interest credits under the plans. As a result of this action, there was a net reduction in the projected benefit obligation of $91 million and a related
curtailment gain of $63 million ($39 million after-tax) on the date the plan amendment was approved. As a result of these changes, the Company has modified the existing defined contribution plan in the United States to provide for greater Company
contributions as further described in the &#147;Defined Contribution Retirement Plan&#148; section of this note.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The following sections provide additional information relating to each
of these benefit arrangements.</FONT></P> <P align=justify><B><FONT face=serif size=1>DEFINED BENEFIT PENSION PLANS <BR></FONT></B><FONT face=serif size=2>The Company sponsors the Plan for eligible employees in the United States. The Plan is a
noncontributory defined benefit plan and was amended effective July 1, 2007. The Plan is a qualified plan under the Employee Retirement Income Security Act of 1974, as amended (ERISA). Under the Plan, the cost of retirement benefits is measured by
length of service, compensation and other factors. These benefits are funded through a trust and the Company&#146;s funding of retirement costs complies with the applicable minimum funding requirements specified by ERISA. The funded status of the
Plan on an ERISA basis for the years ended 2007 and 2006 was 120 percent and 113 percent, respectively. The Plan is a cash balance plan and employees&#146; accrued benefits are based on notional account balances, which are maintained for each
individual. Employees&#146; balances are credited daily with interest at a fixed-rate that is updated each January 1 and is based on the average of the daily five-year U.S. Treasury Note yields for the previous October 1 through November 30. The
interest rate varies from a minimum of 5 percent to a maximum equal to the lesser of (1) 10 percent or (2) the annual maximum interest rate set by the U.S. government for determining lump-sum values. Prior to the amendment as of July 1, 2007, these
balances were also credited each pay period with an amount determined by an employee&#146;s age, years of service, and compensation as defined by the Plan (primarily base pay, certain incentive pay and commissions, shift differential, and overtime).
Employees and their beneficiaries have the option to receive annuity payments upon retirement or a lump-sum payout at vested termination, death, disability or retirement.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
Company also sponsors an unfunded non-qualified SRP for employees compensated above a certain level to supplement their pension benefits that are limited by the Internal Revenue Service. The SRP is a supplemental plan that was also amended as of
July 1, 2007, and its terms generally parallel those of the </FONT></P> <P align=right><FONT face=serif size=1>101</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS <BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><FONT face=serif size=2>Plan
but the SRP&#146;s definition of compensation and payment options differ.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Most employees outside the United States are covered by local retirement plans, some of which are funded,
while other employees receive payments at the time of retirement or termination under applicable labor laws or agreements. The Company complies with the minimum funding requirements in all countries.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT
face=serif size=2>Effective July 2006, the Company amended its U.K. pension plans. Employees who were participating in the existing U.K. defined benefit plans were given a choice between remaining in the plans and making contributions toward their
benefits or moving to the new defined contribution plan. Participants who chose to move no longer accrue benefits under these plans as of July 1, 2006. There was no gain or loss as a result of this change and the overall impact to the projected
benefit obligation was minimal.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company measures the obligations and related asset values for its pension and other postretirement benefit plans as of September 30th of each year.
SFAS No. 158 requires the measurement date for the benefit obligation and plan assets to be the Company&#146;s fiscal year end for years ending after December 15, 2008. The Company will implement this change in 2008 by using a September 30, 2007
measurement date to estimate 2008 pension and other employee benefit plan costs and will revalue the benefit obligation and plan assets at December 31, 2008 for year-end 2008 reporting purposes. </FONT></P> <P align=justify><FONT face=serif
size=2><STRONG>Accumulated Other Comprehensive Loss</STRONG><BR></FONT><FONT face=serif size=2>Upon adoption of SFAS No. 158 at December 31, 2006, the Company recorded additional liabilities of $39 million in other liabilities, a reduction of
pension assets of $416 million in other assets and a $310 million charge to shareholders&#146; equity, net of a deferred income tax benefit of $145 million, related to its defined benefit pension plans which resulted in the net funded status of the
Company&#146;s plans being recorded on the balance sheet. For each plan, the funded status is defined by SFAS No. 158 as the difference between the fair value of plan assets (for funded plans) and the respective plan&#146;s projected benefit
obligation. The projected benefit obligation represents a liability based on the plan participant&#146;s service to date and their expected future compensation at their projected retirement date. The $310 million charge to shareholders&#146; equity,
net of tax, represents all previously unrecognized amounts (e.g. unrecognized gains and losses and prior service cost) which were reflected in accumulated other comprehensive income </FONT><FONT face=serif size=2>(loss) in the one-time cumulative
effect adjustment described above. Changes in unrecognized gains and losses and prior service cost occurring subsequent to adoption of SFAS No. 158 are recognized in other comprehensive income, net of tax, in the periods in which they occur.<BR>
</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The following table provides the items comprising the amount in accumulated other comprehensive loss, which are not yet recognized as a component of net periodic pension benefit cost as of
December 31:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%"><I><FONT face=serif size=1>(Millions)</FONT></I> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face=serif size=2>2006</FONT> </TD>
<TD noWrap align=left width="1%"><SUP><FONT size=2>(a)</FONT></SUP> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Net actuarial loss</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>123</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>472</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><FONT face=serif size=2>Net prior service cost</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>2</FONT></B> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>13</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Total, pretax effect</FONT> </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>125</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>485</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%"><FONT face=serif size=2>Tax impact</FONT> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>(32</FONT></B> </TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B> </TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>(156</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Total, net of taxes</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>93</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>329</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD width="100%"><FONT face=serif size=1>2006 includes the $310 million charge to shareholders&#146; equity as a result of the adoption of SFAS No. 158.</FONT></TD></TR></TABLE> <P align=justify><FONT face=serif size=2>The estimated portion of the
net actuarial loss and net prior service cost above that is expected to be recognized as a component of net periodic pension benefit cost in 2008 is $20 million and nil, respectively. For 2007, excluded from the table above is $(2) million of net
change in accumulated other comprehensive income related to AEB discontinued operations.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The following table details the amounts recognized in other comprehensive loss in
2007:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="95%"><I><FONT face=serif size=1>(Millions)</FONT></I> </TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif size=2>Net actuarial loss:</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="95%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Reclassified to earnings from equity</FONT> </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>(40</FONT></B> </TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Gains in current year</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>(297</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="95%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Recognized as a result of settlements</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>6</FONT></B> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Recognized as a result of curtailment</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>(18</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="95%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Net actuarial loss</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>(349</FONT></B> </TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif size=2>Net prior service cost:</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="95%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Reclassified to earnings from equity</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>(2</FONT></B> </TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Losses in current year</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>2</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="95%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Recognized as a result of curtailment</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>(11</FONT></B> </TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Net prior service cost</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>(11</FONT></B> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="95%"><FONT face=serif size=2>Total, pretax</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>(360</FONT></B> </TD>
<TD style="BORDER-BOTTOM: #ffffff 1.5pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B> </TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2><STRONG>Plan Assets and Obligations</STRONG><BR></FONT><FONT
face=serif size=2>The following tables provide a reconciliation of the changes in the plans&#146; projected benefit obligation, the fair value of assets and the net funded status for all plans:</FONT></P> <P align=justify><FONT face=serif size=2>102
</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS <BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="87%"><I><FONT face=serif size=2>Reconciliation of Change in Projected</FONT></I>&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><I><FONT face=serif size=2>Benefit Obligation</FONT></I>&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%"><FONT face=serif size=2><FONT face=serif size=1><EM>(Millions)&nbsp;</EM><FONT size=3>&nbsp;</FONT></FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1><FONT size=3>&nbsp;&nbsp;</FONT><STRONG><FONT face=serif
size=2><STRONG>2007</STRONG></FONT></STRONG></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1><FONT size=3>&nbsp;&nbsp;</FONT><FONT face=serif size=2>2006</FONT></FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Projected benefit obligation, October</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>1 prior year</FONT>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,619</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2,349</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><FONT face=serif size=2>Service cost</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>93</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>115</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Interest cost</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>138</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>126</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><FONT face=serif size=2>Benefits paid</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>(52</FONT></B></TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(54</FONT></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Actuarial (gain) loss</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(163</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>35</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><FONT face=serif size=2>Plan amendments</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>2</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>&#151;</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Settlements/curtailments</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(185</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(95</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><FONT face=serif size=2>Foreign currency exchange rate</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>changes</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>28</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>143</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Projected benefit obligation at</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="87%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>September 30,</FONT>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,480</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2,619</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD></TR>
<TR>
<TD noWrap width="99%" colSpan=9>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><I><FONT face=serif size=2>Reconciliation of Change in Fair Value</FONT></I>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><I><FONT face=serif size=2>of Plan Assets</FONT></I>&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%"><FONT face=serif size=2><FONT face=serif size=1><EM>(Millions)&nbsp;</EM><FONT size=3>&nbsp;</FONT></FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><STRONG><FONT face=serif
size=2><STRONG>2007</STRONG></FONT></STRONG></FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><FONT face=serif size=2>2006</FONT></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Fair value of plan assets, October 1</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>prior year</FONT>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,383</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2,122</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><FONT face=serif size=2>Actual return on plan assets</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>304</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>231</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Employer contributions</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>29</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>44</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><FONT face=serif size=2>Benefits paid</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>(52</FONT></B></TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(54</FONT></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Settlements</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(93</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(95</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><FONT face=serif size=2>Foreign currency exchange rate</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>changes</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>22</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>135</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Fair value of plan assets at</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="87%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>September 30,</FONT>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,593</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2,383</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR>
<TD noWrap width="99%" colSpan=9>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><I><FONT face=serif size=2>Net Funded Status</FONT></I>&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%"><FONT face=serif size=2><FONT face=serif size=1><EM>(Millions)&nbsp;</EM><FONT size=3>&nbsp;</FONT></FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><STRONG><FONT face=serif
size=2><STRONG>2007</STRONG></FONT></STRONG></FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><FONT face=serif size=2>2006</FONT></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Funded status at September 30,</FONT>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>113</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(236</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%"><FONT face=serif size=2>Fourth quarter contributions</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>4</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>4</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Net amount recognized at</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="87%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>December 31,</FONT>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>117</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(232</FONT></TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp;</TD></TR>
<TR>
<TD noWrap align=left width="98%" colSpan=8>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="98%" colSpan=8><FONT face=serif size=2>The following table provides the amounts recognized on the Consolidated Balance Sheets as of December 31:</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR>
<TD noWrap width="99%" colSpan=9>&nbsp;&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%"><FONT face=serif size=2><FONT face=serif size=1><EM>(Millions)&nbsp;</EM><FONT size=3>&nbsp;</FONT></FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><STRONG><FONT face=serif
size=2><STRONG>2007</STRONG></FONT></STRONG></FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><FONT face=serif size=2>2006</FONT></FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Other liabilities</FONT>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(199</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(256</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%"><FONT face=serif size=2>Other assets</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>316</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>24</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Net amount recognized at</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="87%" bgColor=#c0c0c0>&nbsp; &nbsp;&nbsp; <FONT face=serif size=2>December 31,</FONT>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>117</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(232</FONT></TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp;</TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2><STRONG>Benefit Obligations</STRONG><BR></FONT><FONT
face=serif size=2>The accumulated benefit obligation is the present value of benefits earned to date by plan participants computed based on current compensation levels as contrasted to the projected benefit obligation, which is the present value of
benefits earned to date by plan participants based on their expected future compensation at their projected retirement date. The unvested portion of the accumulated benefit obligation is minimal.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT
face=serif size=2>The accumulated benefit obligation for all pension plans was $2.4 billion at September 30, 2007 and 2006. The accumulated benefit obligation and fair value of plan assets for pension plans where the accumulated benefit obligation
exceeds the fair value of plan assets (primarily unfunded international plans and the SRP) was $205 million and $22 million, respectively, as of September 30, 2007 and $205 million and $17 million, respectively, as of September 30, 2006.&nbsp;<BR>
</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The projected benefit obligation for all pension plans was $2.5 billion and $2.6 billion at September 30, 2007 and 2006, respectively. The projected benefit obligation and fair value of
plan assets for where the projected benefit obligation exceeds the fair value of plan assets was $224 million and $22 million, respectively, at September 30, 2007 and $1.5 billion and $1.2 billion, respectively, at September 30, 2006.</FONT></P> <P
align=justify><FONT face=serif size=2><STRONG>Net Periodic Pension Benefit Cost</STRONG><BR></FONT><FONT face=serif size=2>SFAS No. 87, &#147;Employers&#146; Accounting for Pensions&#148; (SFAS No. 87), provides for the delayed recognition of the
net actuarial loss and the net prior service cost remaining in accumulated other comprehensive income (loss).&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Service cost is the component of net periodic benefit cost which
represents the current value of benefits earned by an employee during the period. Net periodic benefit cost also includes the estimated interest incurred on the outstanding projected benefit obligation during the
period.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>A plan amendment that retroactively increases benefits is recognized as an increase to the projected benefit obligation and a corresponding charge to other comprehensive income,
net of tax, at the date of the amendment. The related costs (prior service costs) are amortized as a component of net periodic pension benefit cost on a straight-line basis over the average remaining service period of active
participants.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Actuarial gains and losses that are not recognized immediately as a component of net periodic pension cost are recognized as increases or decreases in accumulated other
comprehensive income, net of tax, as they arise. Cumulative net actuarial loss included in accumulated other comprehensive income (loss) which exceeds 10 percent of the greater of the projected benefit obligation and the estimated market value of
plan assets are amortized over the average remaining service period of active participants.</FONT></P> <P align=right><FONT face=serif size=1>103</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P
align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The components of the net periodic pension benefit cost for all defined benefit pension plans are as follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="81%"><FONT face=serif size=2><FONT face=serif size=1><EM>(Millions)&nbsp;</EM><FONT size=3></FONT></FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>&nbsp; <B><FONT face=serif size=2>2007</FONT></B></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=1>&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>&nbsp; <FONT face=serif size=2>2006</FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=1>&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>&nbsp; <FONT face=serif size=2>2005</FONT></FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>Service cost</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>89</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp;</FONT>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>109</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp;</FONT>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>104</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%"><FONT face=serif size=2>Interest cost</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>126</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>115</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>109</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>Expected return on plan assets</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(155</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(138</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(131</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%"><FONT face=serif size=2>Amortization of prior service</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%">&nbsp; &nbsp;&nbsp; <FONT face=serif size=2>costs</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>1</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>1</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>1</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>Recognized net actuarial loss</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>35</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>36</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>25</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%"><FONT face=serif size=2>Settlements/curtailment (gain)</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="81%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>loss</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>(68</FONT></B></TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>1</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>4</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>Net periodic pension benefit cost</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>28</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp;</FONT>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>124</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp;</FONT>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>112</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2><STRONG>Assumptions</STRONG><BR></FONT><FONT face=serif size=2>The weighted average assumptions used to determine benefit
obligations were:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="92%">&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><STRONG><FONT face=serif size=2><STRONG>2007</STRONG></FONT></STRONG>
</FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><FONT face=serif size=2>2006</FONT></FONT></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT face=serif size=2>Discount rates</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>5.8</STRONG></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><STRONG><FONT size=2>%</FONT></STRONG></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>5.2</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="92%"><FONT face=serif size=2>Rates of increase in compensation levels</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>4.2</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><STRONG><FONT size=2>%</FONT></STRONG></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=serif size=2>4.1</FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>%</FONT></TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>The weighted average assumptions used to determine net periodic pension benefit cost were:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%">&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><STRONG><FONT face=serif size=2><STRONG>2007</STRONG></FONT></STRONG>
</FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><FONT face=serif size=2>2006</FONT></FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><FONT face=serif size=2>2005</FONT></FONT></FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Discount rates</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>5.2</STRONG></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><STRONG><FONT size=2>%</FONT></STRONG></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>5.1</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>5.6</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><FONT face=serif size=2>Rates of increase in compensation levels</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>4.1</FONT></B></TD>
<TD noWrap align=left width="1%"><STRONG><FONT size=2>%</FONT></STRONG></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>4.3</FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>%</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>4.1</FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>%</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Expected long-term rates of return</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0 colSpan=2></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0 colSpan=2></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0 colSpan=2></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT> on assets</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>7.8</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><STRONG><FONT size=2>%</FONT></STRONG></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>7.8</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>7.9</FONT></TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT></TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>The Company assumes a long-term rate of return on assets on a weighted
average basis. In developing this assumption, management evaluates historical returns on plan assets as well as benchmark information including projections of asset class returns and long-term inflation.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT
face=serif size=2>The discount rate assumptions for the Company&#146;s material plans (U.S. and U.K.) are determined by using a model consisting of bond portfolios that match the cash flows of the plan&#146;s projected benefit payments based on the
plan participant&#146;s service to date and their expected future compensation. Use of the rate produced by this model generates a projected benefit obligation that equals the current market value of a portfolio of high-quality zero coupon bonds
whose maturity dates and amounts match the timing and amount of expected future benefit payments.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Asset Allocation</STRONG><BR></FONT><FONT face=serif size=2>The asset allocation for the
Company&#146;s pension plans at September 30, 2007 and 2006, and the target allocation for 2008, by asset category, are below. Actual allocations generally will be within 5 percent of these targets.</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="88%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=1><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Target</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="5%" colSpan=4><FONT face=serif size=1><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Percentage of</FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%">&nbsp;</TD>
<TD noWrap align=center width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=1><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT>Allocation</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" colSpan=4><FONT face=serif size=1><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Plan assets at</FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2><FONT face=serif size=1><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><STRONG><FONT face=serif
size=2><STRONG>2008</STRONG></FONT></STRONG></FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2><FONT face=serif size=1><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><STRONG><FONT face=serif
size=2><STRONG>2007</STRONG></FONT></STRONG></FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2><FONT face=serif size=1><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2>2006</FONT></FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT face=serif size=2>Equity securities</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>52</STRONG></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>%</STRONG></FONT><FONT size=3>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>55</STRONG></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>%</STRONG></FONT><FONT size=3>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>67</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT><FONT size=3>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%"><FONT face=serif size=2>Debt securities</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>40</FONT></B></TD>
<TD noWrap align=left width="1%"><FONT size=2><STRONG>%</STRONG></FONT><FONT size=3>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>27</FONT></B></TD>
<TD noWrap align=left width="1%"><FONT size=2><STRONG>%</STRONG></FONT><FONT size=3>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>27</FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>%</FONT><FONT size=3>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%" bgColor=#c0c0c0><FONT face=serif size=2>Other</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>8</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>%</STRONG></FONT><FONT size=3>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>18</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>%</STRONG></FONT><FONT size=3>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>6</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT><FONT size=3>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="88%"><FONT face=serif size=2>Total</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>100</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2><STRONG>%</STRONG></FONT><FONT size=3>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT><STRONG>100</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2><STRONG>%</STRONG></FONT><FONT size=3>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT>100</FONT></TD>
<TD style="BORDER-BOTTOM: #ffffff 1.5pt solid" noWrap align=left width="1%"><FONT size=2>%</FONT><FONT size=3>&nbsp;</FONT></TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>The Company invests in a diversified portfolio to ensure that
adverse or unexpected results from a security class will not have a detrimental impact on the entire portfolio. The portfolio is diversified by asset type, risk characteristics and concentration of investments. Asset classes and ranges considered
appropriate for investment of each plan&#146;s assets are determined by the plan&#146;s investment committee. The asset classes typically include domestic and foreign equities, emerging market equities, domestic and foreign investment grade and
high-yield bonds and domestic real estate. Given the January 2007 plan amendments described above, 25 percent of the assets of the U.S. Plan were temporarily transferred from equity securities to cash (other) and will be re-allocated to debt
securities in 2008. This decreased the overall amount of assets allocated to equities by 12 percent and increased other by the same amount in 2007.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Benefit Payments</STRONG><BR></FONT><FONT
face=serif size=2>The Company&#146;s retirement plans expect to make benefit payments to retirees as follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="69%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="3%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=1>&nbsp;&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="3%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=1>&nbsp;&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="3%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=1>&nbsp;&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="3%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=1>&nbsp;&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="3%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=1>&nbsp;&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><FONT face=serif size=2>2013</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="69%"><I><FONT face=serif size=2><FONT face=serif size=1>(Millions)&nbsp;</FONT></FONT></I></TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><FONT face=serif size=2>2008</FONT></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><FONT face=serif size=2>2009</FONT></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><FONT face=serif size=2>2010</FONT></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><FONT face=serif size=2>2011</FONT></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><FONT face=serif size=2>2012</FONT></FONT></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT> <FONT face=serif size=2>&#150;2017</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="69%" bgColor=#c0c0c0><FONT face=serif size=2>Expected</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="69%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>payments</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>133</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>145</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>147</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>152</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>161</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>942</FONT></B></TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>In addition, the Company expects to contribute $18
million to its pension plans in 2008.</FONT></P> <P align=justify><B><FONT face=serif size=1>DEFINED CONTRIBUTION RETIREMENT PLANS<BR></FONT></B><FONT face=serif size=2>The Company sponsors defined contribution retirement plans, the principal plan
being the Retirement Savings Plan (RSP) (formerly the ISP), a 401(k) savings plan with a profit sharing component. The RSP is a qualified plan under ERISA and covers most employees in the United States. Under the terms of the RSP, employees have the
option of investing up to 10 percent of their contributions in the American Express Company Stock Fund, which invests primarily in the Company&#146;s common stock, through accumulated payroll deductions. Employees are restricted from transferring
balances into this fund if the balance has reached 10 percent of the employees&#146; total account balance. The RSP held 15 million and 16 million shares of American Express Common Stock at December 31, 2007 and 2006, respectively, beneficially for
employees. In conjunction with the amendments to the Plan and the SRP which occurred in 2007,</FONT></P> <P align=justify><FONT face=serif size=1>104</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif
size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS <BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><FONT face=serif size=2>the
Company amended the RSP effective July 1, 2007.</FONT><B><FONT face=serif size=2></FONT></B> <FONT face=serif size=2>These amendments include an expanded definition of pay which includes more elements of employee compensation (total pay) as well as
an increase in the Company&#146;s matching of employees&#146; contributions to the plan from a maximum of 3 percent of base pay to a maximum of 5 percent of total pay. Additional annual conversion contributions of up to 8 percent of total pay will
be provided into the RSP in the future for eligible employees who were hired before April 1, 2007. The Company also sponsors an unfunded non-qualified Supplemental Retirement Plan (the SRP-RSP) which was also amended during 2007, and its terms
generally parallel those of the RSP.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In 2006, as part of the amendment to the U.K. pension plan, the Company established a defined contribution plan. As a result, expense and
contributions related to defined contribution plans have increased in the current year as compared to previous periods.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The total expense for all defined contribution plans globally was
$173 million, $106 million, and $109 million in 2007, 2006, and 2005, respectively.</FONT></P> <P align=justify><B><FONT face=serif size=1>OTHER POSTRETIREMENT BENEFITS PLANS<BR></FONT></B><FONT face=serif size=2>The Company sponsors unfunded
defined postretirement benefit plans that provide health care and life insurance to certain retired U.S. employees.</FONT></P> <P align=justify><FONT face=serif size=2>Accumulated Other Comprehensive Loss<BR></FONT><FONT face=serif size=2>Upon
implementation of SFAS No. 158 at December 31, 2006, the Company recorded additional liabilities of $140 million in other liabilities and an $86 million charge to shareholders&#146; equity, net of a deferred income tax benefit of $54 million,
related to its other postretirement benefit plans which resulted in the net funded status of the Company&#146;s plan being recorded.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The following table provides the items comprising
the amount in accumulated other comprehensive loss which are not yet recognized as a component of net periodic benefit cost as of December 31:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%"><FONT face=serif size=2><FONT size=1><EM>(Millions)</EM></FONT><FONT size=3>&nbsp;&nbsp;</FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1><FONT size=3>&nbsp;&nbsp;</FONT>&nbsp; <B><FONT face=serif size=2>2007</FONT></B></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2><FONT face=serif size=1><FONT size=3>&nbsp;&nbsp;</FONT><FONT size=2>2006</FONT></FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2><SUP>(a)</SUP></FONT><FONT size=3>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT face=serif size=2>Net actuarial loss</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>66</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>146</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%"><FONT face=serif size=2>Net prior service cost</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>(4</FONT></B></TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(6</FONT></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT face=serif size=2>Total, pretax effect</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>62</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>140</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%"><FONT face=serif size=2>Tax impact</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>(25</FONT></B></TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(54</FONT></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="88%" bgColor=#c0c0c0><FONT face=serif size=2>Total, net of taxes</FONT>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>37</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>86</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=2><FONT face=serif size=1>(a)</FONT></FONT></TD>
<TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD vAlign=top width="100%"><FONT face=serif size=2><FONT face=serif size=1>2006 includes the $86 million charge to shareholders&#146; equity as a result of the adoption of SFAS No. 158.</FONT></FONT></TD></TR></TABLE> <P align=justify><FONT
face=serif size=2>The estimated portion of the net actuarial loss and net prior service credit above that is expected to be recognized as a component of net periodic benefit cost in 2008 is $4 million and $(2) million,
respectively.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The following table details the amounts recognized in other comprehensive loss in 2007:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"><FONT face=serif size=2><FONT face=serif size=1><EM>(Millions)</EM><FONT size=3>&nbsp;</FONT></FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1><B><FONT face=serif size=2>2007</FONT></B></FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face=serif size=2>Net actuarial loss:</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="93%">&nbsp; &nbsp;&nbsp; <FONT face=serif size=2>Reclassified to earnings from equity</FONT>&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>(8</FONT></B></TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Gains in current year</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>(72</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="93%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net actuarial loss</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>(80</FONT></B></TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face=serif size=2>Net prior service cost:</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Reclassified to earnings from equity</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#ffffff>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff><B><FONT face=serif size=2>2</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net prior service cost</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>2</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="93%" bgColor=#ffffff><FONT face=serif size=2>Total, pretax</FONT>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2><STRONG>&nbsp;$</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#ffffff><B><FONT face=serif size=2>&nbsp;(78</FONT></B></TD>
<TD style="BORDER-BOTTOM: #ffffff 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff><B><FONT face=serif size=2>)</FONT></B>&nbsp;</TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>Plan Obligations<BR></FONT><FONT face=serif
size=2>The following table provides a reconciliation of the changes in the plans&#146; projected benefit obligation for all plans accounted for under SFAS No. 106, &#147;Employers&#146; Accounting for Postretirement Benefits Other Than
Pensions&#148; (SFAS No. 106):</FONT></P> <P align=justify><I><FONT face=serif size=2>Reconciliation of Change in Projected Benefit Obligation</FONT></I></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%"><FONT face=serif size=2><FONT size=1><EM>(Millions)</EM></FONT><FONT size=3>&nbsp;</FONT></FONT>&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1><FONT size=3><FONT face=serif size=2><FONT
size=3>&nbsp;</FONT>&nbsp;<STRONG>2007</STRONG></FONT></FONT><STRONG></STRONG></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><FONT face=serif size=2>2006</FONT></FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT face=serif size=2>Projected benefit obligation, October 1</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT> prior year</FONT>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>376</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>$</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>388</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%"><FONT face=serif size=2>Service cost</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>6</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>7</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT face=serif size=2>Interest cost</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>19</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>20</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%"><FONT face=serif size=2>Benefits paid</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>(23</FONT></B></TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>(22</FONT></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="88%" bgColor=#c0c0c0><FONT face=serif size=2>Actuarial gain</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>(66</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>(17</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="88%"><FONT face=serif size=2>Projected benefit obligation at</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="88%">&nbsp; &nbsp;&nbsp; <FONT face=serif size=2>September 30,</FONT>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>312</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=serif size=2>376</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;</TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>The liabilities for the Company&#146;s defined postretirement benefit plans recognized in the Consolidated Balance Sheets as of December 31
are included in the table below:</FONT></P> <P align=justify><I><FONT face=serif size=2>Reconciliation of Accrued Benefit Cost and Total Amount Recognized</FONT></I></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%"><I><FONT face=serif size=2><FONT size=1>(Millions)</FONT></FONT></I>&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><STRONG><FONT face=serif size=2><STRONG>2007</STRONG></FONT></STRONG></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=1>&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><FONT face=serif size=2>2006</FONT></FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Funded status of the plan</FONT>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp;&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(312</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp;&nbsp;</FONT>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(376</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%"><FONT face=serif size=2>Fourth quarter payments</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>5</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>7</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Net amount recognized at</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="87%" bgColor=#c0c0c0>&nbsp; &nbsp;&nbsp; <FONT face=serif size=2>December 31,</FONT>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp;&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(307</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp;&nbsp;</FONT>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(369</FONT></TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp;</TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>Net Periodic Benefit Cost<BR></FONT><FONT face=serif
size=2>SFAS No. 106 provides for the delayed recognition of the net actuarial loss and the net prior service credit remaining in accumulated other comprehensive income (loss).</FONT></P> <P align=right><FONT face=serif size=1>105</FONT></P> <HR
align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The components of the net periodic benefit cost for all defined postretirement benefit plans accounted for under SFAS No. 106, are as follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="81%"><I><FONT face=serif size=2><FONT face=serif size=1>(Millions)</FONT></FONT></I>&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2006</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2005</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>Service cost</FONT>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>6</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>7</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>6</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%"><FONT face=serif size=2>Interest cost</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>19</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>20</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>19</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>Amortization of prior service costs</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(2</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(2</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(2</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="81%"><FONT face=serif size=2>Recognized net actuarial loss</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>8</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>14</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>12</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>Net periodic benefit cost</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>31</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; &nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>39</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>35</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>Assumptions<BR></FONT><FONT face=serif size=2>The weighted average assumptions used to determine benefit obligations were:
</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="91%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>2007</FONT></B></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>2006</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=serif size=2>Discount rates</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>6.1</STRONG></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>%</STRONG></FONT><FONT size=3>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>5.7</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT><FONT size=3> </FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="91%"><FONT face=serif size=2>Health care cost increase rate:</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%" colSpan=2></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%" colSpan=2></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="91%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Following year</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><STRONG>9.0</STRONG></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>%</STRONG></FONT><FONT size=3>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp;<FONT face=serif size=2>9.5</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT><FONT size=3> </FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="91%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Decreasing to the year 2016</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><STRONG>5</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=2><STRONG>%</STRONG></FONT>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT>5</FONT></TD>
<TD noWrap align=left width="1%"><FONT size=2>%</FONT><FONT size=3> </FONT></TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>The discount rate assumption for the Company&#146;s unfunded defined postretirement benefit plan is determined
by using a model consisting of bond portfolios that match the cash flows of the plan&#146;s projected benefit payments. Use of the rate produced by this model generates a projected benefit obligation that equals the current market value of a
portfolio of high-quality zero coupon bonds whose maturity dates and amounts match the timing and amount of expected future benefit payments.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>A one percentage-point change in assumed
health care cost trend rates would have the following effects:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="77%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="9%" colSpan=5>&nbsp; <FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT> One</FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="10%" colSpan=6>&nbsp; <FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT> One</FONT></FONT></TD>
<TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="77%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="9%" colSpan=5>&nbsp; <FONT size=1><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT> percentage-</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="10%" colSpan=6>&nbsp; <FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>percentage-</FONT></FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="77%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="9%" colSpan=5>&nbsp; <FONT size=1><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&nbsp;point increase</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="10%" colSpan=6><FONT face=serif size=2></FONT>&nbsp; &nbsp; <FONT size=1><FONT size=3>&nbsp;</FONT>point decrease</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="77%"><I><FONT face=serif size=2><FONT size=1>(Millions)</FONT></FONT></I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B></TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2006</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2006</FONT></TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="77%" bgColor=#c0c0c0><FONT face=serif size=2>Increase (Decrease) on benefits</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="77%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>earned and interest cost</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="77%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>for U.S. plans</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>1</FONT></B></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>1</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>(1</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(1</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="77%"><FONT face=serif size=2>Increase (Decrease) on</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="77%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>postretirement benefit</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="2%">&nbsp;</TD>
<TD noWrap align=left width="2%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="77%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>obligation for U.S. plans</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>16</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>19</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>(14</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>(17</FONT></TD>
<TD style="BORDER-BOTTOM: #ffffff 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp;</TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>Benefit Payments<BR></FONT><FONT face=serif size=2>The Company&#146;s
other postretirement benefit plans expect to make benefit payments as follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="69%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="3%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="3%">&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="3%">&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="3%">&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="3%">&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2013</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="69%"><FONT face=serif size=2><FONT face=serif size=1><EM>(Millions)</EM><FONT size=3>&nbsp;</FONT></FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2008</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2009</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2010</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2011</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2012</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>&#150;2017</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="69%" bgColor=#c0c0c0><FONT face=serif size=2>Expected</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="69%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>payments</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>23</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>24</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>24</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>25</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>25</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>134</FONT></B></TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>In addition, the Company expects to contribute $23
million to its other postretirement benefit plans in 2008.</FONT></P> <P align=justify><B><FONT face=serif size=2>NOTE 19 INCOME TAXES</FONT></B></P> <P align=justify><FONT face=serif size=2>The components of income tax expense included in the
Consolidated Statements of Income on income from continuing operations were as follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="81%"><FONT face=serif size=2><FONT face=serif size=1><EM>(Millions)&nbsp;</EM><FONT size=3></FONT></FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1><FONT size=3><FONT size=2>&nbsp;<FONT
size=3>&nbsp;</FONT><STRONG>2007</STRONG></FONT></FONT><STRONG></STRONG></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=1>&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2>2006</FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=1>&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1><FONT size=3><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;<FONT
size=3>&nbsp;</FONT>2005</FONT></FONT></FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>Current income tax expense:</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>U.S. federal</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#ffffff></TD>
<TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD noWrap align=right width="3%" bgColor=#ffffff><B><FONT face=serif size=2>1,608</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#ffffff></TD>
<TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>1,082</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>942</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>U.S. state and local</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>246</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>153</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>96</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="81%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Non-U.S.</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><B><FONT face=serif size=2>408</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>302</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>350</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Total current income tax</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="81%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>expense</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,262</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,537</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,388</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Deferred income tax (benefit)</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=left width="3%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=right width="1%" bgColor=#ffffff></TD>
<TD noWrap align=left width="3%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>expense:</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=left width="3%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=right width="1%" bgColor=#ffffff></TD>
<TD noWrap align=left width="3%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>U.S. federal</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(523</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>16</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(313</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>U.S. state and local</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=right width="3%" bgColor=#ffffff><B><FONT face=serif size=2>(22</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><B><FONT face=serif size=2>)</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=right width="1%" bgColor=#ffffff></TD>
<TD noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>(36</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>)</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>(46</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="81%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Non-U.S.</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(199</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>11</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(38</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Total deferred income tax</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=left width="3%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=right width="1%" bgColor=#ffffff></TD>
<TD noWrap align=left width="3%" bgColor=#ffffff></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#ffffff>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="81%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>benefit</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><B><FONT face=serif size=2>(744</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><B><FONT face=serif size=2>)</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>(9</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>)</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>(397</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>Total income tax expense on</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="81%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>continuing operations</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>$</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,518</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,528</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>991</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>A reconciliation of the U.S. federal statutory rate of 35 percent to the Company&#146;s actual income tax rate for 2007, 2006,
and 2005 on continuing operations was as follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%">&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=1><FONT size=3>&nbsp;&nbsp;</FONT><STRONG><FONT face=serif size=2><STRONG>2007</STRONG></FONT></STRONG></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=1>&nbsp;&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><FONT face=serif size=2>2006</FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=1>&nbsp;&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=1><FONT size=3>&nbsp;&nbsp;</FONT><FONT face=serif size=2>2005</FONT></FONT></TD>
<TD noWrap align=left width="1%">&nbsp;&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Combined tax at U.S. statutory</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>federal income tax rate</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp; <STRONG>35.0</STRONG></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>%</FONT></B></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>35.0</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>%</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>35.0</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>%</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=2>Increase (decrease) in taxes resulting</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>from:</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Tax-exempt income</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp; <STRONG>(2.9</STRONG></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(3.0</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(3.8</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>State and local income taxes, net of</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#ffffff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> federal benefit</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#ffffff></TD>
<TD noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp; <STRONG>2.6</STRONG></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#ffffff></TD>
<TD noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>1.5</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#ffffff></TD>
<TD noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>0.8</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Non-U.S. subsidiaries earnings</FONT>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp; <STRONG>(5.1</STRONG></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(3.9</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(3.6</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>IRS tax settlements</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#ffffff></TD>
<TD noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp; <STRONG>(2.2</STRONG></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><B><FONT face=serif size=2>)</FONT></B></TD>
<TD noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp; (0.3</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>)</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#ffffff></TD>
<TD noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>(3.9</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp; &nbsp;&nbsp; <FONT face=serif size=2>All other</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp; <STRONG>(0.1</STRONG></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.4</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>&#151;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="84%" bgColor=#ffffff><FONT face=serif size=2>Actual tax rates</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>&nbsp;&nbsp;&nbsp; <STRONG>27.3</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif></FONT><STRONG><FONT size=2>%</FONT></STRONG></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>29.7</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>%</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>24.5</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=2>%</FONT></TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=1>106</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS <BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><FONT face=serif size=2>The
Company adopted FASB Financial Interpretation No. 48, &#147;Accounting for Uncertainty in Income Taxes &#151; an interpretation of FASB Statement No. 109&#148; (FIN 48) as of January 1, 2007. The initial adoption of FIN 48 resulted in a charge of
approximately $127 million to the January 1, 2007 balance of retained earnings and an increase in the liability for unrecognized tax benefits. The following table presents changes in the unrecognized tax benefits:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%"><I><FONT face=serif size=2><FONT size=1>(Millions)</FONT></FONT></I>&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT face=serif size=2>Balance, January 1</FONT>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp;&nbsp;<FONT size=3>&nbsp;</FONT> $</FONT></B></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,143</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Increases:</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Current year tax positions</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>165</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Tax positions related to prior years</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>95</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Effects of foreign currency translations</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Decreases:</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Tax positions related to prior years</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(164</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="94%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Settlements with tax authorities</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>(126</FONT></B></TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Lapse of statute of limitations</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(2</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%"><FONT face=serif size=2>Balance, December 31</FONT>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2><FONT size=3>&nbsp;</FONT> $</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>1,112</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>Included in the $1.1 billion of unrecognized tax benefits at December 31, 2007, are approximately $597 million that, if recognized, would
favorably affect the effective tax rate in a future period and relates to the Company&#146;s gross permanent benefits and corresponding foreign tax credits and federal tax effects.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
Company is under continuous examination by the Internal Revenue Service (IRS) and tax authorities in other countries and states in which the Company has significant business operations. The tax years under examination and open for examination vary
by jurisdiction. The Company is currently under examination by the IRS for the years 1997 &#150; 2004.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Given the inherent complexities of the business and that the Company is subject to
taxation in a substantial number of jurisdictions, the Company routinely assesses the likelihood of additional assessments in each of the taxing jurisdictions and has established a liability for unrecognized tax benefits that management believes to
be adequate. Once established, unrecognized tax benefits are adjusted if more accurate information is available, or a change in circumstance, or an event occurs necessitating a change to the liability. The Company believes that it is reasonably
possible that the unrecognized tax benefits will significantly decrease within the next 12 months in the range of $0 to $500 million principally as a result of potential resolutions through settlements of prior years&#146; tax items with various
taxing authorities. The items include unrecognized tax benefits relating to the potential deductibility of certain expenses or losses and the attribution of taxable income to a particular jurisdiction or jurisdictions. Such resolutions could include
payments of additional taxes and the recognition of tax</FONT> <FONT face=serif size=2>benefits. Due to the inherent complexities and the number of tax years currently open for examination in multiple jurisdictions, it is not possible to quantify
the impact such changes may have on the effective tax rate and net income.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>During the year ended December 31, 2007, the Company recognized approximately $13 million of interest
and penalties.</FONT><B><FONT face=serif size=2></FONT></B> <FONT face=serif size=2>The Company has approximately $235 million accrued for the payment of interest and penalties.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif
size=2>Accumulated earnings of certain non-U.S. subsidiaries, which totaled approximately $4.9 billion at December 31, 2007, are intended to be permanently reinvested outside the United States. Accordingly, federal taxes, which would have aggregated
approximately $1.1 billion, have not been provided on those earnings.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company records a deferred income tax (benefit) provision when there are differences between assets and
liabilities measured for financial reporting and for income tax return purposes. The significant components of deferred tax assets and liabilities at December 31 are reflected in the following table:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%"><I><FONT face=serif size=2><FONT face=serif size=1>(Millions)</FONT></FONT></I>&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2006</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Deferred tax assets:</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%">&nbsp; &nbsp;&nbsp; <FONT face=serif size=2>Reserves not yet deducted for tax</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>purposes</FONT>&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2><FONT size=3>&nbsp;</FONT> $</FONT></B></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2><FONT size=3>&nbsp;</FONT>3,403</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2><FONT face=serif size=3>&nbsp;</FONT> $</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2><STRONG><FONT size=3>&nbsp;</FONT></STRONG>2,790</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Employee compensation and benefits</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>461</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>558</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Other</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>206</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>54</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Gross deferred tax assets</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>4,070</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,402</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Valuation allowance</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>(60</FONT></B></TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(51</FONT></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Deferred tax assets after valuation</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> allowance</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>4,010</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,351</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%"><FONT face=serif size=2>Deferred tax liabilities:</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Intangibles and fixed assets</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>633</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>585</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Deferred revenue</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>499</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>380</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="87%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Asset securitizations</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>335</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>323</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Other</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>132</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>423</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="87%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Gross deferred tax liabilities</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,599</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,711</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="87%"><FONT face=serif size=2>Net deferred tax assets</FONT>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2><FONT face=serif size=3>&nbsp;</FONT> $</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2><FONT size=3>&nbsp;</FONT>2,411</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=serif size=2><STRONG><FONT size=3>&nbsp;</FONT></STRONG> $</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2><STRONG><FONT size=3>&nbsp;</FONT></STRONG>1,640</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>The valuation allowances at December 31, 2007 and 2006 relate to deferred tax assets associated with non-U.S.
operations.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Income taxes paid by the Company (including amounts related to discontinued operations) during 2007, 2006, and 2005 were approximately $1.8 billion, $1.4 billion, and
$1.7 billion, respectively. These amounts include estimated tax payments and cash settlements relating to prior tax years.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The tax benefit realized for tax deductions from stock
option exercises which are recorded in additional paid-in capital totaled $158 million, $128 million, and $234 million for the years ended December 31, 2007, 2006 and 2005, respectively.</FONT></P> <P align=right><FONT face=serif
size=1>107</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS <BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><B><FONT face=serif
size=2>NOTE 20 EARNINGS PER COMMON SHARE (EPS)</FONT></B></P> <P align=justify><FONT face=serif size=2>Basic EPS is computed using the average actual shares outstanding during the period. Diluted EPS is basic EPS adjusted for the dilutive effect of
stock options, RSAs, and other financial instruments that may be converted into common shares. The computations of basic and diluted EPS for the years ended December 31 were as follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%"><I><FONT face=serif size=2><FONT face=serif size=1>(Millions, except per share amounts)</FONT></FONT></I>&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2006</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2>&nbsp; <FONT face=serif size=2>2005</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face=serif size=2>Numerator:</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="83%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Income from continuing</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="83%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>operations</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>&nbsp; $</FONT></B></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>4,048</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2><STRONG>&nbsp; </STRONG>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>3,611</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2><STRONG>&nbsp; </STRONG>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>3,062</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>(Loss) Income from</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>discontinued operations, net</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>of tax</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(36</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>96</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>672</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net income</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>4,012</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>3,707</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>3,734</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face=serif size=2>Denominator:</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="83%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Basic: Weighted-average</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="83%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>shares outstanding during</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="83%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>the period</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>1,173</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>1,212</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>1,233</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Add: Dilutive effect of stock</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>options, restricted stock</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>awards and other dilutive</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>securities</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>23</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>26</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>25</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Diluted</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>1,196</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>1,238</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>1,258</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face=serif size=2>Basic EPS:</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="83%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Income from continuing</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="83%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>operations</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>3.45</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>2.98</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>2.48</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>(Loss) Income from</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>discontinued operations</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(0.03</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.08</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.55</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net income</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>3.42</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>3.06</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>3.03</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face=serif size=2>Diluted EPS:</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="83%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Income from continuing</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="83%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>operations</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>3.39</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>2.92</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>2.43</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>(Loss) Income from</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>discontinued operations</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(0.03</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.07</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.54</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="83%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net income</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>3.36</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>2.99</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>2.97</FONT></TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>For the years ended December 31, 2007, 2006, and 2005, the dilutive
effect of unexercised stock options excludes 8 million, 6 million, and 14 million options, respectively, from the computation of EPS because inclusion of the options would have been anti-dilutive.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT
face=serif size=2>The Subordinated Debentures, discussed in Note 9, would affect the EPS computation only in the unlikely event the Company fails to achieve specified performance measures related to the Company&#146;s tangible common equity and
consolidated net income. In that circumstance the Company would reflect the additional common shares in the EPS computation.</FONT></P> <P align=justify><B><FONT face=serif size=2>NOTE 21 REPORTABLE OPERATING SEGMENTS AND GEOGRAPHIC
OPERATIONS</FONT></B></P> <P align=justify><B><FONT face=serif size=1>REPORTABLE OPERATING SEGMENTS <BR></FONT></B><FONT face=serif size=2>The Company</FONT><B><FONT face=serif size=2></FONT></B> <FONT face=serif size=2>is a leading global payments,
network, and travel company. The Company&#146;s businesses are organized into two customer-focused groups, the Global Consumer Group and the Global Business-to-Business Group. During 2007, the Company&#146;s segments were realigned within the two
major customer groups. Accordingly, U.S. Card Services (USCS) and International Card Services (ICS) are aligned within the Global Consumer Group and Global Commercial Services (GCS) and Global Network &amp; Merchant Services (GNMS) are aligned
within the Global Business-to-Business Group. The Company has reclassified the prior period amounts to be consistent with the new reportable operating segments.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company considers a
combination of factors when evaluating the composition of its reportable operating segments, including the results reviewed by the chief operating decision maker, economic characteristics, products and services offered, classes of customers, product
distribution channels, geographic considerations (primarily U.S. versus international), and regulatory environment considerations.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>U.S. Card Services issues a wide range of card
products and services to consumers and small businesses in the United States, and provides consumer travel services to cardmembers and other consumers.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>International Card Services
issues proprietary consumer and small business cards outside the United States.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Global Commercial Services offers global corporate payment and travel-related products and services to
large and mid-sized companies.&nbsp;<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Global Network &amp; Merchant Services segment operates a global general-purpose charge credit card network, which includes both proprietary cards
and cards issued under network partnership agreements. It also manages merchant services globally, which includes signing merchants to accept cards as well as processing and settling card transactions for those merchants. This segment also offers
merchants point-of-sale and back-office products, services and marketing programs.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Corporate &amp; Other consists of corporate functions and auxiliary businesses, including the
Company&#146;s publishing business, Travelers Cheques and other prepaid products, and AEIDC and the continuing portions of AEB not being sold to Standard Chartered.</FONT></P> <P align=justify><FONT face=serif size=1>108</FONT></P> <HR align=center
width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The following table presents certain selected financial information at December 31, 2007, 2006, and 2005 and for each of the years then ended.</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" align=left width="67%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=right width="3%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=right width="3%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=right width="3%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=right width="3%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>Corporate</FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=right width="3%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="67%"><FONT size=1><FONT face=serif size=1><EM>(Millions, except where indicated)</EM><FONT size=3>&nbsp;</FONT></FONT></FONT></TD>
<TD align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>USCS</FONT></FONT></TD>
<TD align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>ICS</FONT></FONT></TD>
<TD align=right width="1%">&nbsp;</TD>
<TD align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>GCS</FONT></FONT></TD>
<TD align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>GNMS</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%">&nbsp;</TD>
<TD align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>&amp; Other<SUP><FONT size=2>(a)</FONT></SUP></FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%">&nbsp;</TD>
<TD align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>Consolidated</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="67%" bgColor=#c0c0c0><B><FONT face=serif size=2>2007</FONT></B></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="3%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="3%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="3%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="3%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="3%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="3%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD align=left width="67%"><FONT face=serif size=2>Revenues, excluding interest income</FONT></TD>
<TD align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>&nbsp;&nbsp; $</FONT></B></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>11,838</FONT></B></TD>
<TD align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>&nbsp;&nbsp; $</FONT></B></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>3,540</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>&nbsp;&nbsp; $</FONT></B></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>4,697</FONT></B></TD>
<TD align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>&nbsp;&nbsp; $</FONT></B></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>3,547</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>&nbsp;&nbsp; $</FONT></B></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>519</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD noWrap align=right width="1%"><STRONG><FONT size=2>&nbsp;&nbsp; <FONT face=serif>$</FONT></FONT></STRONG></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>24,141</FONT></B></TD></TR>
<TR vAlign=bottom>
<TD align=left width="67%" bgColor=#c0c0c0><FONT face=serif size=2>Interest income</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>4,866</FONT></B></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,535</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>50</FONT></B></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>3</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>962</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>7,416</FONT></B></TD></TR>
<TR vAlign=bottom>
<TD align=left width="67%"><FONT face=serif size=2>Interest expense</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>2,482</FONT></B></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>744</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>478</FONT></B></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>(314</FONT></B></TD>
<TD align=left width="1%"><B><FONT face=serif size=2>)</FONT></B></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>436</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%">&nbsp;</TD>
<TD align=right width="3%"><B><FONT face=serif size=2>3,826</FONT></B></TD></TR>
<TR vAlign=bottom>
<TD align=left width="67%" bgColor=#c0c0c0><FONT face=serif size=2>Revenues net of interest expense</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>14,222</FONT></B></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>4,331</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>4,269</FONT></B></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>3,864</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,045</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>27,731</FONT></B></TD></TR>
<TR vAlign=bottom>
<TD align=left width="67%"><FONT face=serif size=2>Pretax income from continuing operations</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%">&nbsp;</TD>
<TD align=right width="3%"><B><FONT face=serif size=2>2,730</FONT></B></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>117</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>744</FONT></B></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>1,560</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>415</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>5,566</FONT></B></TD></TR>
<TR vAlign=bottom>
<TD align=left width="67%" bgColor=#c0c0c0><FONT face=serif size=2>Income tax provision (benefit)</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>907</FONT></B></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(174</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>208</FONT></B></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>538</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>39</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,518</FONT></B></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="67%"><FONT face=serif size=2>Income from continuing operations</FONT></TD>
<TD align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><B><FONT face=serif size=2>1,823</FONT></B></TD>
<TD align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><B><FONT face=serif size=2>291</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><B><FONT face=serif size=2>536</FONT></B></TD>
<TD align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><B><FONT face=serif size=2>1,022</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><B><FONT face=serif size=2>376</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%">&nbsp;<B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><B><FONT face=serif size=2>4,048</FONT></B></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="67%" bgColor=#c0c0c0><FONT face=serif size=2>Total Equity</FONT> <I><FONT face=serif size=2>(billions)</FONT></I></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>4.5</FONT></B></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>2.1</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>2.2</FONT></B></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1.2</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1.0</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0>&nbsp;<B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>11.0</FONT></B></TD></TR>
<TR vAlign=bottom>
<TD align=left width="67%"><FONT face=serif size=2>2006</FONT><SUP><FONT face=serif size=2>(b)</FONT></SUP></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=left width="3%"></TD></TR>
<TR vAlign=bottom>
<TD align=left width="67%" bgColor=#c0c0c0><FONT face=serif size=2>Revenues, excluding interest income</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>10,897</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,291</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>4,254</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,059</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>660</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0>&nbsp;<FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>22,161</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="67%"><FONT face=serif size=2>Interest income</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>3,447</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>1,260</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>15</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>4</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>1,007</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>5,733</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="67%" bgColor=#c0c0c0><FONT face=serif size=2>Interest expense</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,724</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>586</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>369</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(281</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>342</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2,740</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="67%"><FONT face=serif size=2>Revenues net of interest expense</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>12,620</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>3,965</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>3,900</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>3,344</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>1,325</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>25,154</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="67%" bgColor=#c0c0c0><FONT face=serif size=2>Pretax income (loss) from continuing operations</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,323</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>312</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>716</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,188</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(400</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>5,139</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="67%"><FONT face=serif size=2>Income tax provision (benefit)</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>1,171</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>(31</FONT></TD>
<TD align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>239</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>409</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>(260</FONT></TD>
<TD align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>1,528</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="67%" bgColor=#c0c0c0><FONT face=serif size=2>Income (Loss) from continuing operations</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2,152</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>343</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>477</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>779</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(140</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0>&nbsp;<FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,611</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="67%"><FONT face=serif size=2>Total Equity</FONT> <I><FONT face=serif size=2>(billions)</FONT></I></TD>
<TD align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><FONT face=serif size=2>4.7</FONT></TD>
<TD align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><FONT face=serif size=2>1.7</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><FONT face=serif size=2>1.9</FONT></TD>
<TD align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><FONT face=serif size=2>1.3</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><FONT face=serif size=2>0.9</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%">&nbsp;<FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><FONT face=serif size=2>10.5</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="67%" bgColor=#c0c0c0><FONT face=serif size=2>2005</FONT><SUP><FONT face=serif size=2>(b)</FONT></SUP></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="3%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="3%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="3%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="3%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="3%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="3%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD align=left width="67%"><FONT face=serif size=2>Revenues, excluding interest income</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%"><FONT face=serif size=2>9,709</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%"><FONT face=serif size=2>3,135</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%"><FONT face=serif size=2>4,013</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%"><FONT face=serif size=2>2,679</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%"><FONT face=serif size=2>449</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%">&nbsp;<FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%"><FONT face=serif size=2>19,985</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="67%" bgColor=#c0c0c0><FONT face=serif size=2>Interest income</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2,410</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,042</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>&#151;</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>965</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>4,419</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="67%"><FONT face=serif size=2>Interest expense</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>1,145</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>457</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>294</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>(211</FONT></TD>
<TD align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>294</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>1,979</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="67%" bgColor=#c0c0c0><FONT face=serif size=2>Revenues net of interest expense</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>10,974</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,720</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,719</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2,892</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,120</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>22,425</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="67%"><FONT face=serif size=2>Pretax income (loss) from continuing operations</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>2,675</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>298</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>594</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>882</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>(396</FONT></TD>
<TD align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>4,053</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="67%" bgColor=#c0c0c0><FONT face=serif size=2>Income tax provision (benefit)</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>938</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(8</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>165</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>309</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(413</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>991</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="67%"><FONT face=serif size=2>Income from continuing operations</FONT></TD>
<TD align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><FONT face=serif size=2>1,737</FONT></TD>
<TD align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><FONT face=serif size=2>306</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><FONT face=serif size=2>429</FONT></TD>
<TD align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><FONT face=serif size=2>573</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><FONT face=serif size=2>17</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%">&nbsp;<FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><FONT face=serif size=2>3,062</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="67%" bgColor=#c0c0c0><FONT face=serif size=2>Total Equity</FONT> <I><FONT face=serif size=2>(billions)</FONT></I></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>4.6</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1.9</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1.7</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1.3</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1.0</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%" bgColor=#c0c0c0>&nbsp;<FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>10.5</FONT></TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT size=1>(a)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD width="100%"><FONT size=1>Corporate &amp; Other includes adjustments and eliminations for the items included in revenues net of interest expense above.</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT size=1>&nbsp;</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD width="100%"></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=2><FONT face=serif size=1>(b)</FONT></FONT></TD>
<TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD width="100%"><FONT face=serif size=2><FONT face=serif size=1>Amounts for 2006 and 2005 include certain revenue and expense reclassifications, as well as changes to the Company&#146;s reportable operating segments in 2007. Additionally, certain
reclassifications of prior year amounts have been made to conform to the current presentation related to discontinued operations as discussed in Note 1. Except for discontinued operations, these items had no impact on the Company&#146;s consolidated
pretax income from continuing operations, income tax provision, and income from continuing operations. None of these items had an impact on the Company&#146;s net income.</FONT></FONT></TD></TR></TABLE> <P align=right><FONT face=serif size=1>109
</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><FONT face=serif
size=2><STRONG>Revenues Net of Interest Expense</STRONG><BR></FONT><FONT face=serif size=2>The Company allocates discount revenue and certain other revenues among segments using a transfer pricing methodology. Segments earn discount revenue based on
the volume of merchant business generated by cardmembers. Within the U.S. Card Services, International Card Services, and Global Commercial Services segments, discount revenue reflects the issuer component of the overall discount rate; within the
Global Network &amp; Merchant Services segment, discount revenue reflects the network and merchant component of the overall discount rate. Cardmember lending finance revenue and net card fees are directly attributable to the segment in which they
are reported.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Expenses</STRONG><BR></FONT><FONT face=serif size=2>Marketing, promotion, rewards and cardmember services expenses are reflected in each segment based on actual expenses
incurred, with the exception of brand advertising, which is reflected in the Global Network &amp; Merchant Services segment.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Human resources and other operating expenses reflect
expenses, such as professional services, occupancy and equipment, and communications, incurred directly within each segment. In addition, expenses related to the Company&#146;s support services, such as technology costs, are allocated to each
segment based on support service activities directly attributable to the segment. Other overhead expenses, such as staff group support functions, are allocated to segments based on each segment&#146;s level of pretax income. Financing requirements
are managed on a consolidated basis. Funding costs are allocated based on segment funding requirements.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Provisions for Losses and Benefits</STRONG><BR></FONT><FONT face=serif size=2>The
provisions for losses and benefits include credit-related expenses and interest credited on investment certificates directly attributable to the segment in which they are reported.</FONT></P> <P align=justify><FONT face=serif
size=2><STRONG>Capital</STRONG><BR></FONT><FONT face=serif size=2>Each business segment is allocated capital based on established business model operating requirements, risk measures, and regulatory capital requirements. Business model operating
requirements include capital needed to support operations and specific balance sheet items. The risk measures include considerations for credit, market, and operational risk.</FONT></P> <P align=justify><FONT face=serif size=2><STRONG>Income
Taxes</STRONG><BR></FONT><FONT face=serif size=2>Income tax provision (benefit) is allocated to each business segment based on the actual effective tax rates applicable to various businesses that make up the segment.</FONT></P> <P
align=justify><B><FONT face=serif size=1>GEOGRAPHIC OPERATIONS<BR></FONT></B><FONT face=serif size=2>The following table presents the Company&#146;s revenues net of interest expense and pretax income in different geographic regions:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="79%"><FONT size=1><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp;</FONT>&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>United States</FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;&nbsp;</FONT>Europe</FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>Asia/Pacific</FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;&nbsp;</FONT>All Other</FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT size=1><FONT face=serif size=1><FONT size=3></FONT>Consolidated</FONT></FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="79%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>2007</STRONG><FONT size=3>&nbsp;</FONT></FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="2%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="3%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="3%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="2%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD align=left width="79%"><FONT face=serif size=2>Revenues net of interest expense<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>&nbsp;&nbsp; $</FONT></B></TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>19,355</FONT></B></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>&nbsp;&nbsp; $</FONT></B></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>3,560</FONT></B></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>&nbsp;&nbsp; $</FONT></B></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>2,259</FONT></B></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>&nbsp;&nbsp; $</FONT></B></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>2,557</FONT></B></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>&nbsp;&nbsp; $</FONT></B></TD>
<TD noWrap align=right width="2%"><B><FONT face=serif size=2>27,731</FONT></B></TD></TR>
<TR vAlign=bottom>
<TD align=left width="79%" bgColor=#c0c0c0><FONT face=serif size=2>Pretax income from continuing operations<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>4,749</FONT></B></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>384</FONT></B></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>162</FONT></B></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>271</FONT></B></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>5,566</FONT></B></TD></TR>
<TR>
<TD width="100%" colSpan=16>&nbsp;&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left width="79%" bgColor=#c0c0c0><FONT face=serif size=2>2006<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="2%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="3%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="3%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="2%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD align=left width="79%"><FONT face=serif size=2>Revenues net of interest expense<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="2%"><FONT face=serif size=2>17,393</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%"><FONT face=serif size=2>3,168</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="1%"><FONT face=serif size=2>1,992</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%"><FONT face=serif size=2>2,601</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="2%"><FONT face=serif size=2>25,154</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="79%" bgColor=#c0c0c0><FONT face=serif size=2>Pretax income from continuing operations<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>4,312</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>292</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>131</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>404</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>5,139</FONT></TD></TR>
<TR>
<TD width="100%" colSpan=16>&nbsp;&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left width="79%" bgColor=#c0c0c0><FONT face=serif size=2>2005<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="2%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="3%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="3%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="2%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD align=left width="79%"><FONT face=serif size=2>Revenues net of interest expense<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="2%"><FONT face=serif size=2>15,506</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%"><FONT face=serif size=2>2,824</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="1%"><FONT face=serif size=2>1,776</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%"><FONT face=serif size=2>2,319</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="2%"><FONT face=serif size=2>22,425</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="79%" bgColor=#c0c0c0><FONT face=serif size=2>Pretax income from continuing operations<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>3,401</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>230</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>103</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>319</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>4,053</FONT></TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>The data in the above table are, in part, based upon internal
allocations, which necessarily involve management&#146;s judgment.</FONT><B><FONT face=serif size=2></FONT></B> <FONT face=serif size=2>Therefore, it is not practicable to separate precisely the U.S. and international services.</FONT></P> <P
align=justify><FONT face=serif size=1>110</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><B><FONT face=serif size=2>NOTE
22 QUARTERLY FINANCIAL DATA (UNAUDITED)</FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=left width="58%"><FONT face=serif size=1><EM>(Millions, except per share amounts)</EM><FONT size=3>&nbsp;</FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=center width="21%" colSpan=13><B><FONT face=serif size=2>2007</FONT></B><B><SUP><FONT face=serif size=2>(a)</FONT></SUP></B></TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=center width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" align=center width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=center width="18%" colSpan=12><FONT face=serif size=2>2006</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="58%"><FONT face=serif size=2>Quarters Ended<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%" colSpan=2><B><FONT face=serif size=2>12/31</FONT></B></TD>
<TD align=right width="1%">&nbsp;</TD>
<TD align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%" colSpan=2><B><FONT face=serif size=2>9/30<SUP>(b)</SUP></FONT></B></TD>
<TD align=right width="1%">&nbsp;</TD>
<TD align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%" colSpan=2><B><FONT face=serif size=2>6/30</FONT></B></TD>
<TD align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%" colSpan=2><B><FONT face=serif size=2>3/31</FONT></B></TD>
<TD align=right width="1%">&nbsp;</TD>
<TD align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%" colSpan=2><FONT face=serif size=2>12/31</FONT></TD>
<TD align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%" colSpan=2><FONT face=serif size=2>9/30</FONT></TD>
<TD align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%" colSpan=2><FONT face=serif size=2>6/30</FONT></TD>
<TD align=right width="1%">&nbsp;</TD>
<TD align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="2%" colSpan=2><FONT face=serif size=2>3/31</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="58%" bgColor=#c0c0c0><FONT face=serif size=2>Revenues net of interest expense<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp;&nbsp; $</FONT></B></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>7,364</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp;&nbsp; $</FONT></B></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>6,945</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp;&nbsp; $</FONT></B></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>6,938</FONT></B></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp;&nbsp; $</FONT></B></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>6,484</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>&nbsp;&nbsp;</STRONG> $</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>6,675</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>&nbsp;&nbsp;</STRONG> $</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>6,265</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>&nbsp;&nbsp;</STRONG> $</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>6,370</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>&nbsp;&nbsp;</STRONG> $</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>5,844</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="58%"><FONT face=serif size=2>Pretax income from continuing<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD align=left width="58%">&nbsp; &nbsp;&nbsp; <FONT face=serif size=2>operations<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>1,129</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>1,417</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>1,409</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>1,611</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>1,187</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>1,311</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>1,437</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"><FONT face=serif size=2>1,204</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="58%" bgColor=#c0c0c0><FONT face=serif size=2>Income from continuing operations<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>839</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,074</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,040</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,095</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>895</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>934</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>972</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>810</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="58%"><FONT face=serif size=2>(Loss) Income from discontinued<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD align=left width="58%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>operations, net of tax<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>(8</FONT></B></TD>
<TD align=left width="1%"><B><FONT face=serif size=2>)</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>(7</FONT></B></TD>
<TD align=left width="1%"><B><FONT face=serif size=2>)</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>17</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>(38</FONT></B></TD>
<TD align=left width="1%"><B><FONT face=serif size=2>)</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>27</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>33</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=right width="3%"><FONT face=serif size=2>(27</FONT></TD>
<TD align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"><FONT face=serif size=2>63</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="58%" bgColor=#c0c0c0><FONT face=serif size=2>Net income</FONT>&nbsp;&nbsp;</TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>831</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,067</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,057</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,057</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>922</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>967</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>945</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>873</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="58%"><FONT face=serif size=2>Earnings Per Common Share &#151; Basic:<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%">&nbsp;</TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%">&nbsp;</TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD align=left width="58%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Continuing operations<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>0.72</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>0.92</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>0.88</FONT></B></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>0.92</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.75</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.78</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.80</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>0.66</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="58%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Discontinued operations<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><B><FONT face=serif size=2>&#151;</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><B><FONT face=serif size=2>(0.01</FONT></B></TD>
<TD align=left width="1%"><B><FONT face=serif size=2>)</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><B><FONT face=serif size=2>0.02</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><B><FONT face=serif size=2>(0.03</FONT></B></TD>
<TD align=left width="1%"><B><FONT face=serif size=2>)</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><FONT face=serif size=2>0.02</FONT></TD>
<TD align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><FONT face=serif size=2>0.02</FONT></TD>
<TD align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><FONT face=serif size=2>(0.02</FONT></TD>
<TD align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
<TD align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%"><FONT face=serif size=2>0.05</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="58%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net income<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>0.72</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>0.91</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>0.90</FONT></B></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>0.89</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.77</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.80</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.78</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>0.71</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="58%"><FONT face=serif size=2>Earnings Per Common Share &#151;<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD align=left width="58%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Diluted:<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD align=left width="58%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Continuing operations<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>0.71</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>0.90</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>0.86</FONT></B></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>0.90</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.73</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.76</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.78</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>0.64</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="58%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Discontinued operations<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><B><FONT face=serif size=2>&#151;</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><B><FONT face=serif size=2>&#151;</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><B><FONT face=serif size=2>0.02</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><B><FONT face=serif size=2>(0.03</FONT></B></TD>
<TD align=left width="1%"><B><FONT face=serif size=2>)</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><FONT face=serif size=2>0.02</FONT></TD>
<TD align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><FONT face=serif size=2>0.03</FONT></TD>
<TD align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%"><FONT face=serif size=2>(0.02</FONT></TD>
<TD align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
<TD align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%"><FONT face=serif size=2>0.05</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="58%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Net income<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>0.71</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>0.90</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>0.88</FONT></B></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>0.87</FONT></B></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.75</FONT></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.79</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.76</FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>0.69</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="58%"><FONT face=serif size=2>Cash dividends declared per common<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="3%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD>
<TD align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD align=left width="58%">&nbsp; &nbsp;<FONT face=serif size=2>share<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>0.18</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>0.15</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>0.15</FONT></B></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>0.15</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%"><FONT face=serif size=2>0.15</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%"><FONT face=serif size=2>0.15</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%"><FONT face=serif size=2>0.15</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="1%"><FONT face=serif size=2>0.12</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="58%" bgColor=#c0c0c0><FONT face=serif size=2>Common share price:<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="3%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="3%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="3%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="3%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="3%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="3%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="3%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD align=left width="58%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>High<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>63.63</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>65.89</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>65.24</FONT></B></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD align=right width="3%"><B><FONT face=serif size=2>61.90</FONT></B></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%"><FONT face=serif size=2>62.50</FONT></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%"><FONT face=serif size=2>56.19</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="3%"><FONT face=serif size=2>54.91</FONT></TD>
<TD align=left width="1%"></TD>
<TD align=right width="1%"></TD>
<TD align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD align=right width="1%"><FONT face=serif size=2>55.00</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="58%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Low<FONT size=3>&nbsp;</FONT></FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>50.37</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>55.50</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>55.34</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>53.91</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>55.00</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>49.73</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>50.92</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>51.05</FONT></TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(a)</FONT></TD>
<TD vAlign=top noWrap><FONT size=1>&nbsp;</FONT><FONT size=3>&nbsp;</FONT></TD>
<TD vAlign=top width="100%"><FONT face=serif size=1>Note 2 provides additional information on discontinued operations.</FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3><FONT size=1>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(b)</FONT></TD>
<TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD vAlign=top width="100%"><FONT face=serif size=1>Diluted EPS from discontinued operations was greater than basic EPS from discontinued operations due to the impact of rounding fractional amounts.</FONT></TD></TR></TABLE> <P align=justify><B><FONT
face=serif size=2>NOTE 23 RESTRUCTURING CHARGES</FONT></B></P> <P align=justify><FONT face=serif size=2>During 2007, the Company recorded restructuring charges of $49 million related to the Company&#146;s business travel, prepaid services,
international payments business, and technology areas. During 2006 and 2005, the Company recorded restructuring charges of $100 million and $188 million, respectively, related to the Company&#146;s business travel, operations, finance, and
technology areas. These charges principally related to the consolidation of business operations, closing of operating sites, and exiting certain businesses.<BR></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Restructuring charges are
comprised of severance obligations and other exit costs. The charges and any subsequent adjustments related to severance obligations are included in human resources in the Company&#146;s Consolidated Statements of Income, while other exit costs are
included in occupancy and equipment, professional services, and other expenses. Cash payments related to the remaining restructuring liabilities are expected to be completed in 2009, with the exception of contractual long-term severance arrangements
which are expected to be completed in 2010 and certain lease obligations which will continue until their expiration in 2012.</FONT></P> <P align=right><FONT face=serif size=1>111</FONT></P> <HR align=center width="100%" noShade SIZE=2> <PAGE><P
align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p> <P align=center><FONT face=serif size=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P> <P align=justify><FONT face=serif size=2>The
following table summarizes the Company&#146;s restructuring charge activity for the years ended December 31, 2007, 2006, and 2005:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><FONT size=1><I><FONT face=serif size=1>(Millions)</FONT></I>&nbsp;&nbsp;</FONT><FONT size=3></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT size=1><FONT face=serif size=1>&nbsp; Severance</FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%"><FONT size=1>&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>Other</FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%"><FONT size=1>&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>Total</FONT></FONT></TD>
<TD noWrap align=left width="1%"><FONT size=1>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Liability balance at December 31, 2004</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; <FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>35</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>8</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>43</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left width="85%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Restructuring charges</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>159</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>29</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>188</FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Payments</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(108</FONT></TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(29</FONT></TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(137</FONT></TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="85%"><FONT face=serif size=2>Liability balance at December 31, 2005</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>86</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>8</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>94</FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Restructuring charges, net of reversals</FONT><SUP><FONT face=serif size=2>(a)</FONT></SUP></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>89</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>11</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>100</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left width="85%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Payments</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>(84</FONT></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>(9</FONT></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>(93</FONT></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Other non-cash</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(2</FONT></TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(6</FONT></TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>(8</FONT></TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="85%"><FONT face=serif size=2>Liability balance at December 31, 2006</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>89</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>4</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2>93</FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Restructuring charges, net of reversals</FONT><SUP><FONT face=serif size=2>(b)</FONT></SUP></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>34</STRONG></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>15</STRONG></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>49</STRONG></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left width="85%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Payments</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2><STRONG>(61</STRONG></FONT></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2><STRONG>)</STRONG></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2><STRONG>(6</STRONG></FONT></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2><STRONG>)</STRONG></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="2%"><FONT face=serif size=2><STRONG>(67</STRONG></FONT></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2><STRONG>)</STRONG></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Other non-cash</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>(2</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>)</STRONG></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>(4</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>)</STRONG></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>(6</STRONG></FONT></TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>)</STRONG></FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="85%"><FONT face=serif size=2>Liability balance at December 31, 2007</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;<B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>60</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>9</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>69</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=2>The following table summarizes the Company&#146;s restructuring charges, net of reversals, and other non-cash items by reportable operating
segment for the years ended December 31, 2007, 2006, and 2005:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="66%"><FONT size=1>&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="3%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%"><FONT size=1>&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="3%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%"><FONT size=1>&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="3%"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="3%"><FONT size=1>&nbsp;&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="4%" colSpan=2>&nbsp; <FONT face=serif size=1>Corporate</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%"><FONT size=1>&nbsp;</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="66%"><FONT size=1><FONT face=serif size=1><EM>(Millions)</EM><FONT size=3>&nbsp;</FONT></FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT> USCS</FONT></FONT></TD>
<TD noWrap align=right width="1%"><FONT size=1>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT> ICS</FONT></FONT></TD>
<TD noWrap align=right width="1%"><FONT size=1>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT> GCS<FONT size=3></FONT></FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT> GNMS<FONT size=3></FONT></FONT></FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT> &amp; Other</FONT></FONT></TD>
<TD noWrap align=right width="1%"><FONT size=1>&nbsp;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT size=1><FONT face=serif size=1><FONT size=3>&nbsp;</FONT> Total</FONT></FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="66%" bgColor=#c0c0c0><FONT face=serif size=2>2005</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="66%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Restructuring charges</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT> $</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>3</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT> $</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>44</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT> $</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>51</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT> $</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>3</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT> $</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>87</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT> $</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>188</FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="66%" bgColor=#c0c0c0><FONT face=serif size=2>2006</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="66%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Restructuring charges, net of reversals<SUP>(a)</SUP></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>17</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>15</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>41</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>7</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>20</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>100</FONT></TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="66%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Other non-cash</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>&#151;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(1</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>&#151;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>&#151;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(7</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(8</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="66%"><FONT face=serif size=2>2007</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="66%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Restructuring charges, net of reversals<SUP>(b)</SUP></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>13</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>12</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>19</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>4</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>49</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="66%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Other non-cash</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>(2</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>&#151;</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>&#151;</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>&#151;</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>(4</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>(6</FONT></B></TD>
<TD style="BORDER-BOTTOM: #ffffff 1.5pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=middle noWrap><FONT face=serif size=2><FONT face=serif size=1>(a)</FONT></FONT></TD>
<TD vAlign=middle noWrap>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD vAlign=middle width="100%"><FONT face=serif size=2><FONT face=serif size=1>Reversals of $20 million ($3 million in ICS, $1 million in GNMS, and $16 million in Corporate &amp; Other), primarily due to higher redeployment
rates.</FONT></FONT></TD></TR>
<TR>
<TD vAlign=middle colSpan=3>&nbsp;</TD></TR>
<TR>
<TD vAlign=middle noWrap><FONT face=serif size=2><FONT face=serif size=1>(b)</FONT></FONT></TD>
<TD vAlign=middle noWrap></TD>
<TD vAlign=middle width="100%"><FONT face=serif size=2><FONT face=serif size=1>Reversals of $17 million ($2 million in USCS, $2 million in ICS, $2 million in GNMS, and $11 million in Corporate &amp; Other), primarily due to higher redeployment
rates.</FONT></FONT></TD></TR></TABLE> <P align=justify><FONT face=serif size=2>As of December 31, 2007, the total expenses to be incurred for previously approved restructuring activities that were in-progress are not expected to be materially
different than the cumulative expenses incurred to date for these programs. Future decisions to initiate new restructuring activities do not represent future phases of previously approved programs. The amounts in the table to the right relate to the
restructuring programs in-progress during 2007 and initiated at various dates between the fourth quarter of 2004 and fourth quarter of 2007.</FONT></P> <P align=justify><FONT size=2>Cumulative Restructuring Expense Incurred to Date on In-progress
Restructuring Programs</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><FONT face=serif size=2><FONT face=serif size=1><EM>(Millions)</EM><FONT size=3>&nbsp;</FONT></FONT></FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>Severance</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>Other</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>Total</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>USCS</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; &nbsp;<B><FONT face=serif size=2>$</FONT></B></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;</FONT> <STRONG>24</STRONG></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;</FONT> <STRONG>$</STRONG></FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;</FONT> <STRONG>5</STRONG></FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;</FONT> <STRONG>$</STRONG></FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;</FONT> <STRONG>29</STRONG></FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=2>ICS</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>41</FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>6</FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>47</FONT></B></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>GCS</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>141</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>25</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>166</FONT></B></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="84%"><FONT face=serif size=2>GNMS</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>11</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>1</FONT></B></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>12</FONT></B></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Corporate &amp; Other</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>98</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>21</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>119</FONT></B></TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="84%"><FONT face=serif size=2>Total</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; &nbsp; <B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>315</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>58</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>373</FONT></B></TD></TR></TABLE><BR> <P align=justify><FONT face=serif size=1>112</FONT></P> <HR align=center width="100%" noShade SIZE=2>
<PAGE><P align=left><FONT face=serif size=2>
<A HREF="#toc">Table of Contents</A></font></p>
<A NAME="g"></A><P align=center><FONT face=serif size=2>CONSOLIDATED FIVE-YEAR SUMMARY OF SELECTED FINANCIAL DATA<BR></FONT><FONT face=serif size=1>AMERICAN EXPRESS COMPANY</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="71%"><I><FONT face=serif size=2><FONT face=serif size=1>(Millions, except per share amounts, percentages, and where
indicated)</FONT></FONT></I>&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2006</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2005</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2004</FONT></TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>2003</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0><B><FONT face=serif size=2>Operating Results</FONT></B><STRONG><SUP><FONT size=2>(a)</FONT></SUP></STRONG>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%"><FONT face=serif size=2>Revenues net of interest expense</FONT>&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>&nbsp; $</FONT></B></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>27,731</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>&nbsp; $</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>25,154</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>&nbsp; $</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>22,425</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>&nbsp; $</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>20,412</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>&nbsp; $</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>18,061</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0><FONT face=serif size=2>Expenses</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>17,824</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>16,989</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>15,614</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>14,438</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>12,437</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%"><FONT face=serif size=2>Provisions for losses and benefits</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>4,341</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>3,026</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>2,758</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>2,229</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>2,309</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0><FONT face=serif size=2>Income from continuing operations</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>4,048</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,611</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,062</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2,630</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2,267</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%"><FONT face=serif size=2>(Loss) Income from discontinued operations</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>(36</FONT></B></TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>96</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>672</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>886</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>733</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0><FONT face=serif size=2>Income before cumulative effect of accounting change</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>4,012</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,707</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,734</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,516</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,000</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%"><FONT face=serif size=2>Net income</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>4,012</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>3,707</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>3,734</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>3,445</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>2,987</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="71%" bgColor=#c0c0c0><FONT face=serif size=2>Return on average equity<SUP>(b)</SUP></FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>37.3</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><STRONG><FONT size=2>%</FONT></STRONG></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>34.7</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>25.4</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>22.0</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>20.6</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>%</FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%"><B><FONT face=serif size=2>Balance Sheet</FONT></B>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0><FONT face=serif size=2>Cash and cash equivalents</FONT>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>11,737</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>5,036</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>6,140</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>7,639</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,778</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%"><FONT face=serif size=2>Accounts receivable, net</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>42,005</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>38,665</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>35,321</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>32,159</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>29,210</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0><FONT face=serif size=2>Investments</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>14,895</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>17,954</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>18,332</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>18,196</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>15,347</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%"><FONT face=serif size=2>Loans, net</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>53,436</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>43,116</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>33,904</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>27,674</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>25,617</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0><FONT face=serif size=2>Assets of discontinued operations</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>16,747</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>14,412</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>12,746</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>99,624</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>93,436</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%"><FONT face=serif size=2>Total assets</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>149,830</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>128,329</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>114,637</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>194,873</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>177,167</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0><FONT face=serif size=2>Customers&#146; deposits</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>15,397</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>12,010</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>13,827</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>10,040</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>9,851</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%"><FONT face=serif size=2>Travelers Cheques outstanding</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>7,197</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>7,215</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>7,175</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>7,287</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>6,819</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0><FONT face=serif size=2>Short-term debt</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>17,762</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>15,236</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>15,711</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>14,498</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>19,573</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%"><FONT face=serif size=2>Long-term debt</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>55,285</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>42,747</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>30,781</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>32,627</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>20,010</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0><FONT face=serif size=2>Liabilities of discontinued operations</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>16,228</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>13,945</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>12,203</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>92,406</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>85,679</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="71%"><FONT face=serif size=2>Shareholders&#146; equity</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>11,029</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>10,511</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>10,549</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>16,020</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>15,323</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0><B><FONT face=serif size=2>Common Share Statistics</FONT></B>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%"><FONT face=serif size=2>Earnings per share:</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0>&nbsp; &nbsp;&nbsp; <FONT face=serif size=2>Income from continuing operations:</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Basic</FONT>&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>3.45</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>2.98</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>2.48</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>2.09</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>1.77</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Diluted</FONT>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>3.39</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2.92</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2.43</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2.05</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1.75</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>(Loss) Income from discontinued operations:</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Basic</FONT>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(0.03</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>)</FONT></B>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.08</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.55</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.70</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.57</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Diluted</FONT>&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>(0.03</FONT></B></TD>
<TD noWrap align=left width="1%"><B><FONT face=serif size=2>)</FONT></B>&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>0.07</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>0.54</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>0.69</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>0.56</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Cumulative effect of accounting change, net of tax:</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Basic</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"><STRONG><FONT size=2>$</FONT></STRONG></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>&nbsp;&#151;</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>&nbsp;&#151;</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"><FONT size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>&nbsp;&#151;</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(0.05</FONT></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>(0.01</FONT></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Diluted</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><STRONG><FONT size=2>$</FONT></STRONG></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp;&#151;</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&#151;</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&#151;</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(0.06</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(0.01</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%">&nbsp; &nbsp;&nbsp; <FONT face=serif size=2>Net income:</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Basic</FONT>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>3.42</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3.06</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3.03</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2.74</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2.33</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Diluted</FONT>&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>3.36</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>2.99</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>2.97</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>2.68</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>2.30</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0><FONT face=serif size=2>Cash dividends declared per share</FONT>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>0.63</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.57</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.48</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.44</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0.38</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%"><FONT face=serif size=2>Book value per share</FONT>&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>9.53</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>8.76</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>8.50</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>12.83</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>11.93</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0><FONT face=serif size=2>Market price per share(c):</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>High</FONT>&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>65.89</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>62.50</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>59.50</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>57.05</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>49.11</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Low</FONT>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>50.37</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>49.73</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>47.01</FONT></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>47.32</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>30.90</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Close</FONT>&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>52.02</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>60.67</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>51.46</FONT></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>56.37</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>48.23</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0><FONT face=serif size=2>Average common shares outstanding for earnings per share:</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Basic</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><B><FONT face=serif size=2>1,173</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>1,212</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>1,233</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>1,259</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=2>1,284</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Diluted</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,196</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,238</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,258</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,285</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,298</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="71%"><FONT face=serif size=2>Shares outstanding at period end</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>1,158</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>1,199</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>1,241</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>1,249</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>1,284</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0><B><FONT face=serif size=2>Other Statistics</FONT></B>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%"><FONT face=serif size=2>Number of employees at period end</FONT> <I><FONT face=serif size=2>(thousands)</FONT></I><FONT face=serif size=2>:</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>United States</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>32</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>32</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>29</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>41</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>42</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="71%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Outside United States</FONT>&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>36</FONT></B></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>33</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>37</FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>37</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>36</FONT></TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="71%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total<SUP>(d)</SUP></FONT>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>68</FONT></B></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>65</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>66</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>78</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>78</FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="71%"><FONT face=serif size=2>Number of shareholders of record</FONT>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>50,216</FONT></B></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>51,644</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>55,409</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>50,394</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>47,967</FONT></TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=2><FONT face=serif size=1>(a)</FONT></FONT></TD>
<TD vAlign=top noWrap></TD>
<TD width="100%"><FONT face=serif size=2><FONT face=serif size=1>In 2007, the Company entered into an agreement to sell its international banking subsidiary, AEB, to Standard Chartered subject to certain regulatory approvals. The results, assets,
and liabilities of AEB are presented as discontinued operations. Additionally, the spin-off of Ameriprise and certain dispositions were completed in 2006 and 2005, and the results of these operations are presented as discontinued operations. Note 2
provides additional information on discontinued operations.</FONT></FONT></TD></TR>
<TR>
<TD width="100%" colSpan=3>&nbsp;</TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=2><FONT face=serif size=1>(b)</FONT></FONT></TD>
<TD vAlign=top noWrap></TD>
<TD width="100%"><FONT face=serif size=2><FONT face=serif size=1>Computed on a trailing 12-month basis using total shareholders&#146; equity as included in the Consolidated Financial Statements prepared in accordance with
GAAP.</FONT></FONT></TD></TR>
<TR>
<TD width="100%" colSpan=3>&nbsp;</TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=2><FONT face=serif size=1>(c)</FONT></FONT></TD>
<TD vAlign=top noWrap></TD>
<TD width="100%"><FONT face=serif size=2><FONT face=serif size=1>The market price per share beginning with the fourth quarter of 2005 reflects the spin-off of Ameriprise as of September 30, 2005. The opening share price on the first trading day
after the spin-off was $50.75.</FONT></FONT></TD></TR>
<TR>
<TD width="100%" colSpan=3>&nbsp;</TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=2><FONT face=serif size=1>(d)</FONT></FONT></TD>
<TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD vAlign=top width="100%"><FONT face=serif size=2><FONT size=1>Amounts include employees from discontinued operations.</FONT></FONT></TD></TR></TABLE> <P align=right><FONT face=serif size=1>113</FONT></P> <HR align=center width="100%" noShade
SIZE=2> </BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-21
<SEQUENCE>6
<FILENAME>dex21.txt
<DESCRIPTION>SUBSIDIARIES OF THE COMPANY
<TEXT>
<PAGE>
                                                                     EXHIBIT 21
                       SUBSIDIARIES OF THE REGISTRANT

    Unless otherwise indicated, all of the voting securities of these
subsidiaries are directly or indirectly owned by the registrant. Where the
name of the subsidiary is indented, the voting securities of such subsidiary
are owned directly by the company under which its name is indented.


<TABLE>
<CAPTION>

                                                                        Jurisdiction
                                                                              of
Name of Subsidiary                                                      Incorporation
<S>                                                                         <C>
I.  American Express Travel Related Services Company, Inc.
     and its Subsidiaries

   American Express Travel Related Services Company, Inc.                   New York
      Amex Canada Inc.                                                      Canada
         Rexport, Inc.                                                      Canada
      Amex Bank of Canada                                                   Canada
      American Express Company (Mexico) S.A. de C.V.                        Mexico
         American Express Servicios Profesionales, S.A. de C.V.             Mexico
      American Express Bank, FSB                                            Utah
         American Express Receivables Financing Corporation IV LLC          Delaware
      American Express Centurion Bank                                       Utah
         American Express Centurion Services Corporation                    Delaware
         American Express Receivables Financing Corporation III LLC         Delaware
      American Express Credit Corporation                                   Delaware
         American Express Capital Australia                                 Australia
         American Express Euro Funding Limited Partnership                  Scotland
         American Express Sterling Funding Limited Partnership              Scotland
            American Express Funding (Luxembourg) Sarl                      Luxembourg
         American Express Overseas Credit Corporation Limited               Jersey,
                                                                             Channel Islands
            AEOCC Management Company, Ltd.                                  Jersey,
                                                                             Channel Islands
            American Express Overseas Credit Corporation N.V.               Netherlands Antilles
               American Express Hungary Finance Company KFT                 Hungary
                  American Express Canada Credit Corporation                Canada
                  American Express Canada Finance Limited                   Canada
         Credco Receivables Corp.                                           Delaware
         Credco Finance, Inc.                                               Delaware
         American Express Credit Mexico, LLC                                Delaware
           Fideicomiso Empresarial Amex No. 232033
            (American Express Business Trust)                               Mexico
      American Express Dutch Capital, LLC                                   Delaware
      American Express Holdings Netherlands CV                              Netherlands Antilles
         Amex Latin American Holdings S.L.                                  Spain
            Swiss  Branch                                                   Switzerland

                                     -1-
      American Express Receivables Financing Corporation II                 Delaware
      American Express Receivables Financing Corporation V LLC              Delaware
      American Express Limited                                              Delaware
        American Express do Brasil Assessoria Empresarial Ltda.             Brazil
                American Express (Malaysia) Sdn. Bhd.                       Malaysia
                American Express Card (Thai) Co. Ltd.                       Thailand
           American Express Finance (Thailand) Company Ltd.                 Thailand
                      Alpha Card SCRL (50% owned)                           Belgium
            Alpha Card Merchant Services SCRL                               Belgium
         TRS Card International Inc.                                        Delaware
            American Express de Espana, S.A.U.                              Spain
               Amex Asesores de Seguros S.A.U.                              Spain
               American Express Entidad Financiera de Credito S.A.U.        Spain
               American Express Foreign Exchange S.A.U.                     Spain
               American Express Viajes, S.A.U.                              Spain
                  American Express Barcelo Viajes (65% owned)               Spain
         American Express International (B) SDN.BHD.                        Brunei
         American Express International Holdings, LLC                       Delaware
            South Pacific Credit Card Ltd.                                  New Zealand
               Centurion Finance, Ltd.                                      New Zealand
            American Express Argentina, S.A.                                Argentina
            American Express Holdings (France) SAS                          France
               American Express France SAS                                  France
                  American Express Carte France, S.A.                       France
                  American Express (Paris) SAS                              France
                  American Express Assurances                               France
                  American Express Services S. A.                           France
                  American Express Voyages SAS                              France
                  American Express Change SAS                               France
         American Express International, Inc.                               Delaware
            American Express Reisebuero GmbH                                Austria
            American Express Swiss Holdings GmbH                            Switzerland
            American Express Payment Services Limited                       United Kingdom
            American Express International (India) Private Limited          India
            Swisscard AECS AG (50% owned)                                   Switzerland
            American Express Hungary Financial Services Ltd.                Hungary
            American Express Hungary Travel Services Ltd.                   Hungary
            American Express Company A/S                                    Norway
            American Express Denmark A/S                                    Denmark
            American Express Locazioni Finanziarie, S.r.l.                  Italy
            Amex Broker Assicurativo S.r.l.                                 Italy
            American Express International A.E.(Greece)(99% owned)          Greece
               Key Tours Ltd. (32.5%)                                       Greece
            American Express International (Taiwan), Inc.                   Taiwan
            American Express Travel Holdings (Hong Kong) Limited            Hong Kong
               Farrington American Express Travel Services Limited          Hong Kong
            ACS AllCard Service GmbH                                        Germany
            American Express Bureau de Change S.A.                          Greece
            AE Exposure Management Limited                                  Jersey,
                                                                             Channel Islands

                                     -2-
            American Express Poland S.A.                                    Poland
            Sociedad Internacional de Servicios de Panama, S.A.             Panama
            American Express Business Solutions Co. Ltd.                    Japan
            American Express International Services                         Russia
            Amex Marketing Japan Limited                                    Delaware
            American Express (India) Private Ltd.                           India
            American Express spol. s.r.o.                                   Czech Republic
            Amex Travel Holding (Japan) Ltd.                                Japan
               American Express Nippon Travel Agency, Inc. (55% owned)      Japan
            Schenker Rhenus Reisen Verwaltungsgesellschaft  GmbH            Germany
            American Express Holding AB                                     Sweden
               Resespecialisterna Syd AB                                    Sweden
               Forsakringsaktiebolaget Viator                               Sweden
               American Express Business Travel                             Sweden
               American Express Commercial Card AB                          Sweden
               American Express Business Travel A/S                         Norway
               American Express Business Travel AS                          Denmark
               American Express Commercial Card AB                          Sweden
            American Express Services India Limited (99.99% owned)          India
               American Express Foreign Exchange Services India Limited     India
            Mackinnons American Express Travel (Private) Limited (30% owned)Sri Lanka
            American Express Superannuation Pty Limited                     Australia
            American Express Wholesale Currency Services Pty. Limited       Australia
            American Express Slovensko s.r.o.                               Slovakia
            American Express Corporate Travel SA                            Belgium
            American Express Australia Limited                              Australia
            American Express Holdings Limited                               England
               American Express Insurance Services Europe Limited           England
               American Express Services Europe Limited                     England & Wales
                  Uvet American Express Corporate Travel S.p. (35% owned)   Italy
                  ICONCARD S.p.a. (50% owned)                               Italy
                  Immobiliare Spagna & Mignanelli S.r.l. (11.42% owned)     Italy
            American Express Travel Related Services
              Pakistan (Private) Limited                                    Pakistan
            Amex Life Insurance Marketing, Inc.                             Taiwan
            Amex General Insurance Agency, Inc.                             Taiwan
            American Express Travel Services Vostok, LLC                    Russia
            Interactive Transaction Solutions Limited                       England
              Interactive Transaction Solutions SAS                         France
            Amex Pre-Paid Card Y.K.                                         Japan
      American Express Publishing Corporation                               New York
      Travellers Cheque Associates, Limited (54% owned)                     England & Wales
      Bansamex S.A. (50% owned)                                             Spain
      Amex (Middle East) B.S.C. (50% owned)                                 Bahrain
         ASAL (American Express Saudi Arabia) (25% owned)                   Bahrain
         Amex Oman LLC                                                      Oman
         Amex Egypt Company                                                 Egypt
      American Express Europe Limited                                       Delaware
      American Express France Holdings I LLC                                Delaware
         American Express Management SNC                                    France
            American Express France Finance SNC                             France
               American Express France Holdings II LLC                      Delaware
           American Express Insurance Services, Ltd.                        England & Wales
                  Cardmember Financial Services, Ltd.                       Jersey,
                                                                             Channel Islands

                                     -3-
      Integrated Travel Systems, Inc.                                       Texas
      American Express Bank (Mexico), S.A.                                  Mexico
         American Express Bank Services, S.A. de C.V.                       Mexico
      American Express Incentive Services, Inc.                             Delaware
         American Express Incentive Services, LLC (49% owned)               Missouri
      American Express International (NZ), Inc.                             Delaware
      Cavendish Holdings, Inc.                                              Delaware
      American Express Business Loan Corporation                            Utah
      Travel Impressions, Ltd.                                              Delaware
      American Express Global Financial Services, Inc.                      Delaware
      Harbor Payments, Inc.                                                 Delaware
         Harbor Payments Corporation                                        Georgia
         Fiware Holdings, Inc.                                              Delaware
      American Express Travel Holdings (M) Company SDN                      Malaysia
         Mayflower American Express Travel Services Sdn Bhd (30%)           Malaysia
      Ketera Technologies, Inc. (20% owned)                                 Delaware
      Amex Card Services Company                                            Delaware
      Belgium Travel                                                        Belgium
      South African Travellers Cheque Company (Pty) Ltd.                    South Africa
      Inveramex Chile Ltda.                                                 Chile
         Amex Immobiliaria Ltda.                                            Chile
      American Express (China) Ltd.                                         Delaware
      American Express Insurance Agency of Puerto Rico, Inc.                Puerto Rico
      American Express Travel (Singapore) PTE Ltd.                          Singapore
      American Express Marketing & Development Corp.                        Delaware
      American Express Insurance Services Agente de Seguros SA de CV        Mexico
      American Express Travel Services Vostok LLC                           Russia
      Rosenbluth International (Russia) Ltd.                                Pennsylvania
         Rosenbluth Holding Company                                         Russia
         Rosenbluth International Travel, Ltd.                              Russia
      Rosenbluth France Holdings, S.A.R.I.                                  France
         Rosenbluth International France, S.A.R.I.                          France
      Rosenbluth International Hong Kong Ltd.                               Hong Kong
      Rosenbluth International, SRL de C.V.                                 Mexico
      Rosenbluth (Germany) GmbH                                             Germany
         Rosenbluth International GmbH                                      Germany
      Rosenbluth International Reisebur GmbH Austria                        Austria
      Rosenbluth International Limited                                      Pennsylvania
      Rosenbluth International (Israel) Ltd.                                Israel


II. American Express Banking Corp. and its Subsidiaries

   American Express Banking Corp.                                           New York
      American Express Bank Ltd.                                            Connecticut
         Amex Holdings, Inc.                                                Delaware
            Amex Cyber International Ltd.                                   British Virgin
                                                                             Islands
               mReferral Corporation Limited (33.33%)                       British Virgin
                                                                             Islands
            American Express Bank GmbH                                      Germany
               American Express FinanzManagement GmbH                       Germany
            American Express Bank (Switzerland) S.A.                        Switzerland
            Amex International Trust (Guernsey) Limited                     Guernsey,
                                                                             Channel Islands

                                     -4-
               Birdsong Limited                                             Guernsey,
                                                                             Channel Islands
               Songbird Limited                                             Guernsey,
                                                                             Channel Islands
               AITG Corporate Secretaries Limited                           Guernsey,
                                                                             Channel Islands
               Nominees One Limited                                         Guernsey,
                                                                             Channel Islands
               Nominees Two Limited                                         Guernsey,
                                                                             Channel Islands
            American Express Bank Asset Management (Cayman) Limited         Cayman Islands
            American Express Financial Services (Luxembourg) S.A.           Luxembourg
            Amex International Trust (Cayman) Ltd.                          Cayman Islands
               Vesey Limited                                                Cayman Islands
               Global Nominees Limited                                      Cayman Islands
            AEBL Uruguay Limited                                            Uruguay
         American Express Bank International                                United States
         Argentamex S.A.                                                    Argentina
         American Express Bank Ltd., S.A.                                   Argentina
         Amex Nominees (S) Pte Ltd.                                         Singapore
         Amex Bank Nominee Hong Kong Limited                                Hong Kong
         The American Express Nominees Limited (98% owned)                  England & Wales
         American Express Bank LLC                                          Russia
         American Express do Brasil Representacoes Ltda.                    Brazil
         American Express do Brasil Consultoriae
          Servicos Internacionais Ltda.                                     Brazil
         American Express Bank Asset Management Company (Luxembourg) S.A.   Luxembourg


III. Other Subsidiaries of the Registrant

      American Express International Deposit Company                        Cayman Islands
      American Express Austria Bank GmbH                                    Austria
      Amex Assurance Company                                                Illinois
      Ainwick Corporation                                                   Texas
      American Express Asset Management Holdings, Inc.                      Delaware
      American Express Investment Management Ltd.                           Cayman Island
      Amexco Insurance Company                                              Vermont
      National Express Company, Inc.                                        New York
         The Balcor Company Holdings, Inc.                                  Delaware
            The Balcor Company                                              Delaware
      International Capital I Corp.                                         Delaware
         International Capital Corp. (Cayman) (Ltd.)                        Cayman Islands
      Acamex Holdings, Inc.                                                 Cayman Islands
         Etisa Holdings Ltd.                                                Cayman Islands
            Empresas Turisticas Integradas, S.A. de C.V. (95% owned)        Mexico
      Rexport, Inc.                                                         Delaware
         Drillamex, Inc.                                                    Delaware
      UMPAWAUG I Corporation                                                Delaware
      UMPAWAUG II Corporation                                               Delaware
      UMPAWAUG III Corporation                                              Delaware
      UMPAWAUG IV Corporation                                               Delaware
      56th Street AXP Campus LLC                                            Arizona
      FRC West Property L.L.C.                                              Arizona

</TABLE>
                                     -5-
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>7
<FILENAME>dex231.htm
<DESCRIPTION>CONSENT OF PRICEWATERHOUSECOOPERS LLP
<TEXT>
<HTML><HEAD>
<TITLE>Consent of PricewaterhouseCoopers LLP</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Exhibit 23.1 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B></B>We hereby consent to the
incorporation by reference in the Registration Statements (Form S-8 No.&nbsp;2-46918, No.&nbsp;2-59230, No.&nbsp;2-64285, No.&nbsp;2-73954, No.&nbsp;2-89680, No.&nbsp;33-01771, No.&nbsp;33-02980, No.&nbsp;33-28721, No.&nbsp;33-33552,
No.&nbsp;33-36442, No.&nbsp;33-48629, No.&nbsp;33-62124, No.&nbsp;33-65008, No.&nbsp;33-53801, No.&nbsp;333-12683, No.&nbsp;333-41779, No.&nbsp;333-52699, No.&nbsp;333-73111, No.&nbsp;333-38238, No.&nbsp;333-98479; and No.&nbsp;333-142710; Form S-3
No.&nbsp;2-89469, No.&nbsp;33-43268, No.&nbsp;33-50997, No.&nbsp;333-32525, No.&nbsp;333-45445, No.&nbsp;333-47085, No.&nbsp;333-55761, No.&nbsp;333-51828, No.&nbsp;333-113768, No.&nbsp;333-117835 and No.&nbsp;333-138032) of American Express Company
of our report dated February&nbsp;25, 2008, relating to the consolidated financial statements and the effectiveness of internal control over financial reporting, which appears in the Annual Report to Shareholders, which is incorporated by reference
in this Annual Report on Form 10-K. We also consent to the incorporation by reference of our report dated February&nbsp;25, 2008, relating to the financial statement schedule, which appears in this Form 10-K. <B> </B></FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="100%"></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">/s/ PricewaterhouseCoopers LLP</FONT></P></TD></TR>
<TR>
<TD HEIGHT="16"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">New York, New York</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">February&nbsp;25, 2008</FONT></P></TD></TR>
</TABLE>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>8
<FILENAME>dex311.htm
<DESCRIPTION>CERTIFICATION OF KENNETH I. CHENAULT, CHIEF EXECUTIVE OFFICER
<TEXT>
<HTML><HEAD>
<TITLE>Certification of Kenneth I. Chenault, Chief Executive Officer</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>EXHIBIT 31.1 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>CERTIFICATION </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">I, Kenneth I. Chenault, certify that: </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1. I have reviewed this annual report on Form 10-K of American Express Company; </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this report; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4. The registrant&#146;s other certifying officer(s) and I are
responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for
the registrant and have: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(a) Designed such disclosure controls and procedures, or caused such disclosure controls and
procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which
this report is being prepared; </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(b) Designed such internal control over financial reporting, or caused such internal control
over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles; </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(c) Evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(d) Disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the
registrant&#146;s most recent fiscal quarter (the registrant&#146;s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over
financial reporting; and </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">5. The registrant&#146;s other certifying officer(s) and I have disclosed, based on our most recent evaluation of
internal control over financial reporting, to the registrant&#146;s auditors and the audit committee of the registrant&#146;s board of directors (or persons performing the equivalent functions): </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant&#146;s ability to record, process, summarize and report financial information; and </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal control over financial reporting. </FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0">

<TR>
<TD WIDTH="44%"></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD WIDTH="51%"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Date: February 28, 2008</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">/s/&nbsp;&nbsp;&nbsp;&nbsp;K<SMALL>ENNETH</SMALL> I.
C<SMALL>HENAULT&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</SMALL></FONT></P></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Kenneth I. Chenault</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="1"><B>Chief Executive Officer</B></FONT></P></TD></TR>
</TABLE>
</BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>9
<FILENAME>dex312.htm
<DESCRIPTION>CERTIFICATION OF DANIEL T. HENRY , CHIEF FINANCIAL OFFICER
<TEXT>
<HTML><HEAD>
<TITLE>Certification of Daniel T. Henry , Chief Financial Officer</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>EXHIBIT 31.2 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>CERTIFICATION </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">I, Daniel T. Henry, certify that: </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1. I have reviewed this annual report on Form 10-K of American Express Company; </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this report; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4. The registrant&#146;s other certifying officer(s) and I are
responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for
the registrant and have: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(a) Designed such disclosure controls and procedures, or caused such disclosure controls and
procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which
this report is being prepared; </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(b) Designed such internal control over financial reporting, or caused such internal control
over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles; </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(c) Evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(d) Disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the
registrant&#146;s most recent fiscal quarter (the registrant&#146;s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over
financial reporting; and </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">5. The registrant&#146;s other certifying officer(s) and I have disclosed, based on our most recent evaluation of
internal control over financial reporting, to the registrant&#146;s auditors and the audit committee of the registrant&#146;s board of directors (or persons performing the equivalent functions): </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant&#146;s ability to record, process, summarize and report financial information; and </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal control over financial reporting. </FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0">

<TR>
<TD WIDTH="44%"></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD WIDTH="51%"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Date: February 28, 2008</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">/s/&nbsp;&nbsp;&nbsp;&nbsp;D<SMALL>ANIEL</SMALL> T.
H<SMALL>ENRY&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</SMALL></FONT></P></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Daniel T. Henry</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="1"><B>Chief Financial Officer</B></FONT></P></TD></TR>
</TABLE>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>10
<FILENAME>dex321.htm
<DESCRIPTION>SECTION 906 CEO AND CFO CERTIFICATIONS
<TEXT>
<HTML><HEAD>
<TITLE>Section 906 CEO and CFO certifications</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>EXHIBIT 32.1 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>Certification Pursuant to </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>18 U.S.C. Section&nbsp;1350, </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>as Adopted Pursuant to </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman"
SIZE="2"><B>Section&nbsp;906 of the Sarbanes-Oxley Act of 2002 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In connection with the Annual Report on Form 10-K of American Express
Company (the &#147;Company&#148;) for the fiscal year ended December&nbsp;31, 2007, as filed with the Securities and Exchange Commission on the date hereof (the &#147;Report&#148;), Kenneth I. Chenault, as Chief Executive Officer of the Company, and
Daniel T. Henry, as Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. Section&nbsp;1350, as adopted pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002, that: </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(1) The Report fully complies with the requirements of Section&nbsp;13(a) or 15(d) of the Securities Exchange Act of 1934; and </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
</FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0">

<TR>
<TD WIDTH="11%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="88%"></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">/s/&nbsp;&nbsp;&nbsp;&nbsp;K<SMALL>ENNETH</SMALL> I.
C<SMALL>HENAULT&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</SMALL></FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="1"><B>Name:</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Kenneth I. Chenault</B></FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="1"><B>Title:</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Chief Executive Officer</B></FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="1"><B>Date:</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>February 28, 2008</B></FONT></TD></TR>
</TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0">

<TR>
<TD WIDTH="11%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="88%"></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">/s/&nbsp;&nbsp;&nbsp;&nbsp;D<SMALL>ANIEL</SMALL> T.
H<SMALL>ENRY&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</SMALL></FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="1"><B>Name:</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Daniel T. Henry</B></FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="1"><B>Title:</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Chief Financial Officer</B></FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="1"><B>Date:</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>February 28, 2008</B></FONT></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section&nbsp;1350, as
adopted pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002, and is not being &#147;filed&#148; as part of the Form 10-K or as a separate disclosure document for purposes of Section&nbsp;18 of the Securities Exchange Act of 1934, as
amended (the &#147;Exchange Act&#148;), or otherwise subject to liability under that section. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act
except to the extent that this Exhibit 32.1 is expressly and specifically incorporated by reference in any such filing. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">A signed original
of this written statement required by Section&nbsp;906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. </FONT></P>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>12
<FILENAME>g66665americanexpress_10k4x9.jpg
<DESCRIPTION>GRAPHIC
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`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
