BHF-BANK appoints Citibank as Clearing Agent in London; BHF-BANK becomes Citibank's First German-based SETS participant client.

LONDON--(BUSINESS WIRE)--August 3, 1999--

Citibank Worldwide Securities Services (WWSS), a unit of Citigroup Inc.'s Global Corporate and Investment Banking division, today announced its appointment as local clearing agent for BHF-BANK, Citibank's first German-based SETS participant. SETS is the electronic equity order book for trading on the London Stock Exchange (the exchange).

Citibank WWSS engineered the process to support BHF-BANK's clearance and settlement of securities on SETS. Citibank WWSS re-configured its global securities movement and control system to provide an appropriate mechanism to meet the exchange's regulatory requirements.

Giulio Di Cerbo, Head of Citibank Global Clearing Sales and Account Management, noted: "Citibank is pleased to have facilitated BHF-BANK in becoming its first German-based SETS participant customer for clearing. As we have done with clients in other European markets, we worked very closely with the exchange and BHF-BANK to design this new structure which benefits both parties."

Di Cerbo continued, "With all that's changing in Europe, it is critically important that Citibank, as the world's leading securities clearing bank, assists brokers in leveraging all opportunities in the rapidly changing securities trading environment. Every securities market represents unique challenges. It is our job to help clients meet these challenges."

Support of remote on-exchange trading is one of the ways Citibank provides clients efficient access to markets for all instruments. We have been providing clearing and settlement support for "street-side" trading in Europe for decades. Today, Citibank provides access to most EU markets, as well as countries that are potentially the "next wave" to join the union, with the broadest on-the-ground coverage in the euro-zone, as well as presence in all the major European financial centers.

Citibank supports clients directly trading on exchanges in the U.K., Italy, the Netherlands, Spain, and Switzerland, and will do the same in other countries as permitted. It clears and settles trades on electronic trading platforms for all security types, including euro-MTS and will connect to other major trading platforms as they come on line.

Citibank Worldwide Securities Services serves global issuers and investors through the industry's largest proprietary network, spanning 50 countries. It currently provides securities services to more than 2,500 customers worldwide and has $3.4 trillion in assets under custody. WWSS is the industry's premier custodian of cross-border assets, the dominant servicer of global securities and a recognized leader in depositary receipts and agency and trust services.

Citigroup (NYSE:C) is one of the world's most global financial services organizations. It provides a broad array of financial products and services to 100 million consumers and corporate customers through its operations in 100 countries. Among its businesses are Citibank, Commercial Credit, Primerica Financial Services, Salomon Smith Barney, SSB Citi Asset Management, Travelers Life and Annuity and Travelers Property Casualty.