Citibank Completes Innovative Global Vendor Finance Securitisation for Alcatel.

LONDON--(BUSINESS WIRE)--May 19, 1999--

Alcatel and Citibank, a unit of Citigroup Inc., announced completion of the first global vendor finance securitisation outside of the US.

SVF 1999-A Trust, a Delaware entity, has purchased interests in a portfolio of vendor finance loans, originated by Alcatel, from the proceeds of a global bank syndication that was oversubscribed. Salomon Smith Barney and Citibank were the joint lead arrangers on the syndicated facility. The Trust is currently authorised to purchase up to US$ 500 million of such loans on a blind pool basis.

Jean-Pierre Halbron, Senior Executive Vice President and Chief Financial Officer of Alcatel, stated that: "this innovative transaction should result in enhanced returns to shareholders. The off-balance sheet sale of longer term loan assets improves corporate liquidity and frees up capital for other productive uses." Mr. Halbron added that it also "provides Alcatel with a competitive edge in arranging cost effective vendor financing within the confines of a market based credit discipline."

Eligible loans include those between US$ 1 - 50 million from over 110 countries on six continents. Borrowers may include a wide array of both established operators as well as new entities. Loans may be made to telecom, satellite and submarine cable operators who purchase equipment from Alcatel.

Historically, equipment vendors have had to negotiate with financial buyers on each loan and have been unable to sell of certain loans. Citibank has developed a proprietary approach - the Citibank SVF(TM) Program - that enables vendors to use a portfolio approach together with securitisation and leasing technology to transfer interests in loans from a broader spectrum of credit exposures. This approach results in investors purchasing a higher rated security than if they purchased individual interests in each loan.

Alan S MacDonald, head of Citibank's Global Relationship Banking stated that "this transaction perfectly mirrors Citibank's strengths in providing structured financial solutions to sophisticated multinational customers with complex global financial needs."

Alcatel builds next generation networks, delivering integrated end to end voice and data solutions to established and new carriers, as well as enterprises and consumers worldwide. With 120,000 employees and sales of Euro 21.3 billion (USD 25.0 billion), Alcatel operates in more than 130 countries. For more information visit Alcatel on Internet: http://www.alcatel.com.

Citigroup (NYSE:C), the world's most global financial services company, provides some 100 million consumers, corporations, governments and institutions in more than 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, SSB Citi Asset Management, Commercial Credit and Primerica under Citigroup's trademark red umbrella. Additional information is available at: http://www.Citigroupinfo.com or http://www.Citigroupinfo.com.