WEST DES MOINES, Iowa--(BUSINESS WIRE)--May 31, 2007--American Equity Investment Life Holding Company (NYSE:AEL), today announced that it will repurchase up to 350,000 shares of its outstanding common stock in open market transactions. Such purchases will be made by AEL's NMO Deferred Compensation Trust (the "Trust"), and will be used to fund AEL's obligation under its NMO Deferred Compensation Plans (the "Plans") to distribute shares of common stock to the principals of its key marketing organizations. The Trust has previously acquired shares in private transactions and now owns approximately 2.6 million shares. The repurchase of shares by the Trust will reduce the number of diluted shares outstanding on a one-for-one basis.

ABOUT AMERICAN EQUITY

Founded in 1995, American Equity Investment Life Holding Company is a full-service underwriter of a broad line of annuity and insurance products, with a primary emphasis on the sale of fixed rate and index annuities. The Company's headquarters are located at 5000 Westown Parkway, West Des Moines, Iowa, 50266. The mailing address of the company is: P.O. Box 71216, Des Moines, Iowa, 50325.

    CONTACT: American Equity Investment Life Holding Company
             Debra J. Richardson, Sr. Vice President, 515-273-3551
             drichardson@american-equity.com
             or
             John M. Matovina, Vice Chairman, 515-457-1813
             jmatovina@american-equity.com
             or
             D. J. Noble, Chairman, 515-457-1705
             dnoble@american-equity.com
             or
             Julie L. LaFollette, Investor Relations, 515-273-3602
             jlafollette@american-equity.com

    SOURCE: American Equity Investment Life Holding Company