Citibank N.A. To Acquire European American Bank From ABN AMRO For $1.6 Billion.

Business & Finance Editors

NEW YORK and UNIONDALE, N.Y.--(BUSINESS WIRE)--Feb. 12, 2001

Citibank To Become Leading Bank in Long Island Market in Deposits

Strengthen its Presence in Metropolitan New York Area

Citibank N.A. will acquire European American Bank (EAB), one of Long Island's largest banks with operations throughout metropolitan New York, from ABN AMRO Bank N.V. for $1.6 billion plus the assumption of $350 million in preferred stock, the companies announced today.

Headquartered in Uniondale, Long Island, EAB is a state-chartered bank with $11.5 billion in deposits, $15.4 billion in assets and 97 branches, including 67 in Long Island's Nassau and Suffolk counties and 30 in the five boroughs of New York City.

The transaction, which upon completion will be immediately accretive to Citigroup's earnings, is subject to customary bank regulatory approvals. It is expected to close in mid-2001.

"EAB has a great management team, excellent locations throughout Long Island and metropolitan New York, strong roots in its communities and, importantly, a tremendous reputation for customer service and great, long-term customer relationships," said Marge Magner, head of Citigroup's domestic retail operations. "We couldn't think of a better acquisition partner through which to expand our presence in this region.

"The acquisition brings with it several strategic benefits. It will make Citibank the leading bank in terms of deposits on Long Island - one of the most appealing banking markets - where we now have 27 locations. It will also strengthen our position in diverse local communities throughout New York City's five boroughs, where we currently have 96 branches. The combination will enable us to leverage our existing franchise and infrastructure to serve a broader customer base in the region," said Magner.

"From both a geographic and business standpoint our businesses complement each other," continued Magner. "The acquisition extends our physical presence, since there is little overlap between EAB's branch network and our own. EAB also brings to Citibank a very strong small- and middle-market commercial lending business and a solid leasing business. Citibank, as a result of its efforts to transform its branches into true financial service centers, can offer an expanded array of financial products and services to EAB's retail customers, assisting them with a full range of financial needs. Further, we are delighted that Ed Travaglianti and Brendan Dugan will be joining our management team."

EAB Chairman and Chief Executive Officer Edward Travaglianti commented, "We are pleased to join forces with Citibank to build a banking presence on Long Island and in New York that represents the best that both our companies have to offer. We couldn't think of a better organization to team up with and, in this way, to become part of the leading bank in terms of deposits on Long Island. Furthermore, Citibank understands and values the great relationships we have with our customers and communities over the years, and at the same time is able to offer a wider range of products and services designed to help our customers realize their financial goals and objectives."

"It has been a difficult decision to sell a part of our bank with a solid track record like EAB," said Joost Kuiper, Member of the Managing Board of ABN AMRO. "We had to come to the conclusion, however, that the real scope for growth and synergies for ABN AMRO in the U.S. lies in the Midwest, building from an already leading position in that region. These opportunities for profitable growth are stronger for us than those in the New York metropolitan area, which in our U.S. network has a somewhat isolated geographical position."

Following the merger, EAB locations will be converted to Citibank financial centers bearing the Citibank brand name. The transition is expected to begin immediately after closing.

Following the transaction, Mr. Travaglianti will join Citibank N.A. as President of the newly created Citibanking Commercial Markets Group. Brendan Dugan, currently EAB's President and Chief Operating Officer, will become Chief Operating Officer of Citibanking Commercial Markets Group. The Citibanking Retail Distribution Group will continue to be run by Maura Marcus, who along with Mr. Travaglianti, reports to Ms. Magner.

Citibank N.A. is the North American banking arm of Citigroup, (NYSE:C), the preeminent global financial services company. Citigroup provides some 120 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. Major brand names under Citigroup's trademark umbrella are Citibank, CitiFinancial, Primerica, Salomon Smith Barney, and Travelers. Additional information may be found at: www.citigroup.com.

Netherlands-based ABN AMRO Bank N.V. is one of the world's largest banks and is organized into three autonomous strategic business units, each with a clear responsibility for managing a distinct client segment. Wholesale clients, which brings together investment and corporate banking servicing the needs of large corporate, institutional and public sector clients internationally. Consumer and Commercial Clients focussing on consumer and SME clients in a number of key markets worldwide. Private clients and asset management encompassing the asset gathering of private banking and fund management business, combining them in an integrated global business. It had total assets of approx. USD 500 billion and more than 3,500 locations in 70 countries and territories.

In North America, ABN AMRO is headquartered in Chicago and has USD 171 billion in assets and more than 20,000 employees with wholesale banking offices in 13 cities in the U.S, Canada and Mexico. Major North American subsidiaries include ABN AMRO Incorporated, an investment banking, advisory and brokerage firm; ABN AMRO Asset Management (USA) LLC; LaSalle Bank in Chicago and Standard Federal Bank in Michigan. In November 2000, ABN AMRO announced the acquisition of Michigan National Corporation, that after closing of the transaction, is planned to be integrated with Standard Federal.