It is totally different than PnP rules, where the AC is instead of armor, not additional AC. IN NWN it stacked with normal mundane armor for much uberness. It is still pretty effective in the current form where it is +1 to nat, armor, def, and shield AC.
Improved Mage armor gives +2 to each of these for +8, but typically that character already has +1 bonuses to everything, so it ends up being +5 total because those +1 dodge boots stack with the +2 dodge from Imp Mage Armor.
Don't forget that Clerics can increase AC magically with Magic Vestment, so a 12th level cleric can make their mundane armor and shield +3 each.
Improved Mage armor gives +2 to each of these for +8, but typically that character already has +1 bonuses to everything, so it ends up being +5 total because those +1 dodge boots stack with the +2 dodge from Imp Mage Armor.
Don't forget that Clerics can increase AC magically with Magic Vestment, so a 12th level cleric can make their mundane armor and shield +3 each.

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