Citibank Taps NCR to Build Next-Generation ATMs.

LOS ANGELES--(BUSINESS WIRE)--Aug. 28, 1997--

-- Assignment Expands Alliance Between the Two Companies --

Under a newly reached agreement, Citibank today announced that NCR has been selected to construct the Bank's next generation of proprietary ATM machines.

A Master Alliance Agreement between the two companies calls for NCR to assume hardware design and production of Citibank's new line of ATM's, based on a model created at the Citicorp Development Center (CDC), Citibank's customer technology center in Los Angeles. NCR will also assume maintenance and sustaining support for most of Citibank's current model of Citicard Banking Center ATMs.

The original Citibank ATM, known as the Citicard Banking Center, was first introduced 20 years ago. It is widely credited with revolutionizing ATM banking for consumers by providing a much greater degree of functionality and convenience than had previously been available. Today, customers conduct transactions on Citibank ATMs in 42 different countries around the world.

The most notable difference between the new unit and the older version is the external appearance. While the current generation of machine was designed as a traditional wall unit, the new generation will be a free-standing unit requiring a significantly smaller amount of floor space. Nevertheless, it will still feature the same distinctive, branded look and complete range of features that have traditionally characterized ATMs designed, owned and operated by Citibank.

Both generations of the Citibank ATM provide broad functionality, enabling customers to pay mortgages, loans and even third-party bills; transfer funds; buy and sell stocks or mutual funds; and make deposits and withdrawals. Both generations also feature Citibank's unique ATM operating platform, which includes a fast, Pentium chip- powered, Windows NT operating system; a patented touch-screen user interface assuring ease of use and privacy; and a one-time-dip card- reader, meaning the user never has to let go of his or her card during an ATM session.

The master agreement is non-exclusive and will have an initial five-year term. Said Jeroen Tas, head of the Citicorp Development Center's Business Development group, "We expect this alliance to grow as we continue to engage in open and mutually beneficial activities. For some years now, NCR has been a valued development partner for Citibank in the area of ATMs, so we look forward to working closely with them in this new endeavor."

"This is a very significant partnership for both NCR and Citicorp today and into the next millennium," said Per-Olof Loof, senior vice president of NCR's Financial Systems Group. "It brings together one of the most famous names in banking and a world leader in bank technology solutions, and allows both to concentrate on their core competencies. We showed NCR could be flexible enough to accommodate Citibank's unique requirements. Our additional strengths include NCR's worldwide maintenance coverage and the fact that Citibank's existing ATMs already use several NCR modules."

The Citicorp Development Center has served as the assembly site for Citibank's ATM devices since they were first developed there twenty years ago. As a result of this master agreement, production will gradually be scaled back, and eventually eliminated, at the Los Angeles facility.

Mr. Tas said the Center would continue to develop Internet-based technologies that provide a Citibank-branded, interactive customer experience in self-service and remote banking services, as well as for other products and services such as PC banking, the Internet, smartcards, global funds transfers, and product solutions for corporate and consumer banking customers.

"This is a step we've taken in response to an evolving competitive and technological environment," explained Mr. Tas. "In this day and age, assembling ATM devices can no longer be considered core to Citicorp Development Center's competencies. Instead, we now have to focus our resources and efforts on product design, software development, and system integration, and incorporate the leading-edge technologies that will provide marketplace excitement and a competitive edge in the future, much as the broad distribution of our ATMs did twenty years ago."

Citibank is a global financial services organization. It serves individuals, businesses, governments, and financial institutions through more than 3,400 locations (including branches, representative offices, and subsidiary and affiliate offices) in 98 countries and territories around the world.

NCR supplies banks and other financial institutions with Banking Solutions in the Age of the Consumer. NCR Corporation's computer systems, store automation, banking systems, consulting and support services are used by customers in more than 130 countries around the world.

CONTACT: John Skelly 

Citicorp Development Center

310/302-3253

Mark McCall 

NCR

312/240-2640