MOODY'S  CHANGES  OUTLOOK  FOR IDS  LIFE  AND  SUBSIDIARIES'  RATINGS  (Aa3  FOR
INSURANCE FINANCIAL STRENGTH) TO NEGATIVE FROM STABLE

New York, September 06, 2002 -- Moody's Investors Service has changed the
outlook on IDS Life Insurance Company's (IDS Life) Aa3 insurance financial
strength rating to negative from stable. This outlook change has also been made
for IDS Life's two subsidiaries, IDS Life Insurance Company of New York and
American Enterprise Life Insurance Company which are also rated Aa3. The changes
in these outlooks have occurred as part of Moody's assessment of its current US
life insurers' ratings given the increasingly harsh environment in which the
industry is operating (discussed in a separate press release).

All three companies are core parts of American Express Financial Advisors
(AEFA), the financial planning arm of American Express Company (American
Express, A1 senior debt). The rating outlook for American Express remains
unchanged at stable.

In changing IDS Life's rating outlook to negative from stable, Moody's cites the
heavy equity market-orientation of AEFA's overall business mix. AEFA's
profitability has come under considerable pressure as declining equity markets
have reduced fee revenues to the company on equity based products.

In addition, IDS Life has been required to incur additional costs where it has
guaranteed minimum death benefits on variable annuity contracts, thus impacting
earnings.

AEFA has absorbed substantial credit losses in early 2001, primarily related to
extensive weakness in its speculative grade securities in its investment
portfolio. While AEFA has since substantially repositioned its portfolio to
decrease its risk profile, Moody's expects that a difficult credit environment
will cause AEFA to incur further future credit losses, albeit at a more modest
pace.

The negative outlook indicates that if these trends continue or worsen, Moody's
believes IDS Life's rating may have to be adjusted downward as it currently does
not incorporate the diminished levels of earnings and capital formation that are
likely under an adverse scenario.

IDS Life benefits from AEFA's financial advisor field force with favorable
retention, from its good profitability and low expense structure, and from its
affiliation with American Express, which provides cardmember cross-marketing
opportunities and financial support as necessary.

IDS Life is headquartered in Minneapolis, Minnesota and at March 31, 2002 had
approximately $45 billion in statutory assets and $2.2 billion in statutory
capital. As of the same date, IDS Life Insurance Company of New York had
approximately $2.7 billion in statutory assets and $222 million in statutory
capital, and American Enterprise Life Insurance Company had approximately $5
billion in statutory assets and $292 million in statutory capital. American
Express, which is based in New York, had approximately $146 billion in GAAP
assets and $13.3 billion in shareholders' equity as of June 30, 2002.

Moody's insurance financial strength ratings are opinions of the ability of
insurance companies to repay punctually senior policyholder claims and
obligations. For more information, visit our website at
www.moodys.com/insurance.