Citibank Completes Approvals for Full-Service Branch in Israel.

JERUSALEM--(BUSINESS WIRE)--October 31, 1999--

Citibank today announced that it has completed the regulatory process to operate a full-service branch in Israel.

Completion came with the approval of the Federal Reserve Bank of New York, which followed approval from the Bank of Israel on October 13. The branch, which will be in Tel Aviv, will serve corporate customers.

Citibank, a subsidiary of Citigroup, has been operating in Israel since February 1996, when it became the first major international bank to open a representative office. Citibank now is expected to be the first major international bank to open a full-service branch in Israel. Another Citigroup subsidiary, the Salomon Smith Barney investment bank, has been active in Israel for many years, serving Israeli clients out of New York, London and a representative office in Tel Aviv.

Today's announcement was made by Citigroup's chairman and co-chief executive officer, Sanford I. Weill, at a meeting with the Governor of the Bank of Israel, Jacob Frenkel. Also attending were William R. Rhodes, Vice Chairman of Citigroup and Citibank; Ron Braverman, Country Corporate Officer for Citigroup in Israel; and Dr. Itzhak Tal, Supervisor of Banks - Bank of Israel.

Mr. Weill said: "Citibank's decision to open a full-service banking business in Israel reflects Israel's continuing macroeconomic progress and our confidence in the future growth of trade and commercial flows to and from Israel and other parts of the Middle East."

Mr. Rhodes said: "Our Israel branch is part of our strategy to serve our customers globally and represents our vote of confidence in the Israeli economy. We see major opportunities here and look forward to introducing advanced technology and international banking skills while building new relationships with the Israeli corporate community."

Citibank's full-service corporate-banking branch will be managed by Mr. Braverman, who has been with Citibank in Israel since it opened and has headed the representative office since January 1999.

Mr. Braverman said: "Full branch status will enable Citigroup to provide on-the-spot advice and assistance to multinational subsidiaries, local companies and international investors who require the services of an international bank. We expect that the branch will initially have strong demand for its global financial services, in particular cash management, treasury and trade finance, where Citibank has a global reputation for expertise and innovation. Between Salomon Smith Barney and Citibank, Citigroup will be able to offer our clients a full range of corporate- and investment-banking products and services."

Citigroup (NYSE:C), the most global financial services company, provides some 100 million consumers, corporations, governments and institutions in 100 countries with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage and asset management. The 1998 merger of Citicorp and Travelers Group brought together such brand names as Citibank, Travelers, Salomon Smith Barney, Commercial Credit (now named CitiFinancial), and Primerica under Citigroup's trademark red umbrella. Additional information can be found at: www.citigroup.com