Citibank Launches the CitiFX Benchmark.

NEW YORK--(BUSINESS WIRE)--July 6, 1999--

Citibank today announces the global launch of the CitiFX Benchmark - which provides clients and the general market with a series of 37 independently audited spot foreign exchange rates. These rates are set six times per day in the three major currency trading centers.

Citibank identified a need for a wider and more accurate benchmarking model and decided to develop, test and offer a comprehensive series of benchmark foreign exchange rates that will greatly reduce the uncertainty surrounding where a market is trading at the exact moment of fixing. Guy Whittaker, Citibank Global Head of Foreign Exchange, explained the process: "We researched the strengths and weaknesses of the other currently available benchmarks and developed a system to include many of their advantages, while eliminating weaknesses, thus providing the most accurate spot rate valuations possible."

The benchmarking of foreign exchange rates has become an important aspect of operations within the international corporate and financial communities. Benchmarks are used to keep track of positions, mark these positions to market, evaluate portfolio performance, determine contract pricing and set financial budgets.

To give the new benchmarking model the credibility of a proven history, the CitiFX Benchmark was tested, with the aid of a few clients, against existing known benchmarks such as the Frankfurt Exchange fixing for a full year. The CitiFX Benchmark performed well and demonstrated significantly more precise and accurate foreign exchange rates at the fixing time. A number of clients are already using the CitiFX Benchmark including Royal Dutch Shell who was the first to do so.

The CitiFX Benchmark covers a wide range of spot rates, including emerging market currencies. Key features of Citibank's new benchmarking model include:

-- Coverage of 37 currencies, with further additions as appropriate -- All currencies fixed simultaneously at six set times a day -

twice daily in each time zone -- Rates are fixed using the latest technology to capture the most

accurate market level -- Sophisticated algorithms are used to cross-check rates -- Rates are released within 5 minutes of the six published fixing

times -- Independent verification by international auditors KPMG and the

SIB ensures total transparency 

Citibank is also offering clients the opportunity to execute their foreign exchange at rates based on the Benchmark rates bringing an additional level of transparency and accuracy to clients' foreign exchange transactions. Additionally, Benchmark orders and fills can be transmitted electronically between the client and Citibank via the CitiFX Interactive website, greatly enhancing the ease with which foreign exchange business is conducted. "Transacting over the web reduces our execution time and greatly reduces the risk of errors. This continues to prove the Internet is a great medium for increasing efficiencies," says Mark Mohler, Vice President Treasury at Oracle.

CitiFX Benchmark rates are available on unrestricted Reuters and Bloomberg pages 'FXBENCH'. Online web access including downloadable historical data is available to clients through the CitiFX Interactive Website at HYPERLINK http://www.globalmarkets.citibank.com, www.citifx.citibank.com