CitiStreet Year Marked By Growth in Sales and Services; New Services Include TRO Platform and Human Resources Contact Center.

QUINCY, Mass. -- CitiStreet grew its business in all segments in the past year, a period also marked by major administration technology developments in human resources and total retirement outsourcing.

CitiStreet's institutional customers grew by 12 percent, and advisor-sold business increased 9 percent in the under $50 million defined contribution marketplace.

"We had a very good year, and we are well-positioned to grow in the future," said Phil Lussier, CitiStreet chairman and CEO, who took office a year ago. "As always, our success will stem from our customer partnerships as we continue to expand and improve to meet the needs of their plan participants."

Among the firms making new selections of CitiStreet services were Aetna Inc., the state of Missouri, Snap-on Inc., Superior Essex Inc., MasterCard International and American Family Insurance.

CitiStreet also was chosen to provide education for the federal Thrift Savings Plan's recent offering of lifecycle funds for its 3.4 million plan participants. It also added large health and welfare customers to its existing base of nearly 900,000 participants.

In serving American Family, CitiStreet employed its new, adaptable Total Retirement Outsourcing (TRO) platform for the administration of defined benefit and defined contribution services, along with integrated health and welfare services. The single-platform technology allows CitiStreet to offer a TRO solution to a broader array of customers; previous industry offerings have mainly limited such combined services only to the very largest institutions.

"The integration of benefit servicing, which allows sponsors to consolidate outsourcing and reduce costs, will be a significant part of our business going forward," said Sandy McCarthy, CitiStreet president of retirement services. "All of our business springs from tying our growth strategy directly to our customer needs."

CitiStreet's selection by Aetna to provide DC and health and welfare services also included certain human resources services. The human resources partnership marked the first time that CitiStreet had expanded its technology and services to include human resources contact center support.

"This is another example of CitiStreet's customer focus and solutions orientation. CitiStreet invested in the development of this new service offering as a solution for Aetna and to meet growing customer needs for this type of human resources outsourcing model," said Jim Murphy, CitiStreet president and head of total benefits outsourcing.

The year also saw the sale of CitiStreet Associates, a division of CitiStreet LLC that distributed annuity products and retirement plans to the education, healthcare, and not-for-profit markets, to MetLife. CitiStreet Associates, which was part of the New Jersey division, then became part of MetLife Resources, a division of MetLife similarly dedicated to providing retirement plans and financial services to the same markets.

The transaction was finalized shortly after MetLife, Inc. acquired Travelers Life & Annuity, with whom CitiStreet Associates has had a long relationship. CitiStreet will continue to be the record keeper for the CitiStreet Associates business that moved to MetLife Resources after the acquisition, making that firm one of its largest customers.

"We are delighted that MetLife Resources will now be a very significant customer of CitiStreet, and we look forward to growing this relationship," said Bill Valentine, executive vice president.

CitiStreet, which does significant small market 401(k) business through Citigroup intermediaries and the financial advisors of Smith Barney, a division of parent Citigroup, expanded that distribution when Smith Barney took on Legg Mason's broker-dealer business. That relationship came via a swap with Legg Mason for Citigroup's asset management unit.

To underscore the importance of participants as the focus of all its efforts, CitiStreet set forth a long-term philosophy of providing Direction-for-Life(TM) through its full array of services that guide participants from their earliest working years into retirement.

Also during the year, CitiStreet surpassed the 50 percent participation mark for customers its investment advice and managed account service through CitiStreet Advisors, LLC. CitiStreet noted that the advisory services that it offers directly have led to significant increases in retirement savings among participants using the service (140 percent more than those of unadvised participants), improved diversification and an overall increase in plan satisfaction. And the data show that participation in advice doubles on average from about 15 percent the first year the service is offered to nearly 30 percent by the end of the third year.

Overall customer satisfaction was in evidence when CitiStreet surveyed its large institutional customers and 91 percent of them said they were pleased with CitiStreet's service.

About CitiStreet

CitiStreet, one of the largest global benefits delivery firms in the United States, is headquartered in Quincy, Mass. CitiStreet has 3,000 employees at offices in Somerset, N.J., Jacksonville, Fla., Lewiston, Maine, Boston and field offices around the nation. It also has a division, CitiStreet Australia, with offices in Sydney, Brisbane and Melbourne. CitiStreet serves more than 9 million participants and administers approximately $200 billion in assets in the United States for defined contribution, defined benefit and health and welfare plans of corporate, government, health care, Taft-Hartley and not-for-profit organizations. It also serves about 1 million participants and administers about $9 billion in assets outside the United States. CitiStreet is a 50/50 joint venture between State Street Corp. (NYSE:STT) and Citigroup (NYSE:C). For more CitiStreet information, visit the Web site at www.citistreetonline.com.