Citibank and Salomon Smith Barney Join UPromise To Encourage College Savings.

Business Editors & Personal Finance Writers

NEW YORK--(BUSINESS WIRE)--Feb. 5, 2001

Allow Contributions From Card Purchases to be Invested in

Section 529 College Savings Programs

Citigroup Companies Become First Financial Services 

Partners In UPromise Network

Citibank and Salomon Smith Barney today announced that they have joined a groundbreaking network designed to help American families meet the daunting challenge of saving for college. The two companies, both members of Citigroup, are the first financial services providers to link with UPromise, Inc., a revolutionary savings network connecting some of America's leading corporations with families saving for college.

Citibank credit cardmembers can enroll in the UPromise service, which will allow 1% of their net card purchases to be contributed to a UPromise member account. The funds in the UPromise account may be contributed to a participating tax-advantaged, state-sponsored Section 529 college savings program. Salomon Smith Barney is the first 529 program manager to join the UPromise network.

"Citi Cards is very pleased to join UPromise as a cornerstone partner in this unique effort to help families save for college," said Peter Knitzer, Managing Director for Citi Cards. "This relationship is another example of Citigroup's commitment to helping our customers meet their personal financial goals. Now, simply by using their cards for everyday purchases, Citibank cardmembers can save towards the future cost of college." For more information, cardmembers can go to www.upromise.com.

"Citibank and Salomon Smith Barney have made an important commitment to helping their customers realize their dreams of a college education for their children," said Michael Bronner, Chairman and Chief Executive Officer of UPromise. "Together with Citibank and Salomon Smith Barney, we will change the way America's families save for college."

UPromise members can elect to have their contributions invested in "Scholar's Choice," the section 529 program sponsored by the state of Colorado and managed by Salomon Smith Barney and Citigroup Asset Management, the money management arm of Citigroup. Money invested in a 529 plan grows on a tax-deferred basis, allowing for attractive compounding of earnings, until the money is withdrawn. In the case of withdrawals used to pay for qualified education expenses, earnings are taxed as ordinary income at the beneficiary's rate, rather than at the account owner's rate. In many cases, the beneficiary will be subject to a lower tax rate than the account owner.

"Families continue to struggle to save for both their children's college education and other life goals, such as retirement," said Andrea Feirstein, Director of College Savings Plans at Citigroup Asset Management. "These Section 529 programs are one of the best options for building up a college nest egg. By joining with UPromise, we hope to encourage more and more Americans to take advantage of these programs."

The Scholar's Choice program is open to any U.S. resident and account assets can be withdrawn on a tax-favored basis to pay for expenses at any eligible public or private, two- or four-year college, university, graduate school, or vocational/technical school in the U.S. Any U.S. resident can establish an account on behalf of any beneficiary; they do not need to be related.

Salomon Smith Barney is a global, full-service investment banking and securities brokerage firm. The firm's 12,127 financial consultants are located in approximately 513 offices across the United States, and they serve more than 7.3 million client accounts, representing $977 billion in assets. Salomon Smith Barney is a subsidiary of Citigroup.

Salomon Smith Barney is a registered service mark of Salomon Smith Barney, Inc.

Citigroup Asset Management is comprised of the substantial resources that are available through its primary asset management business platforms: Salomon Brothers Asset Management, Smith Barney Asset Management, a division of Salomon Smith Barney Inc., and Citibank Global Asset Management. SSB Citi Fund Management LLC, a unit of Citigroup Asset Management, is the manager of Smith Barney Mutual Funds. The Citigroup Asset Management companies offer institutional, high net worth and retail clients a broad range of investment disciplines from global investment centers around the world. Products and services offered include mutual funds, closed-end funds, separately managed accounts, unit investment trusts, college savings plans and variable annuities (through affiliated and third party insurance companies). Aggregate assets under management totaled $401 billion as of December 31, 2000.

Investments in the Scholar's Choice program are not insured by the Federal Deposit Insurance Corporation, any other state or federal governmental agency, are not deposits or any other obligations of Citigroup, Inc. or any depository institution. Investments are not guaranteed by the State of Colorado, the Colorado Student Obligation Bond Authority, any other state or federal governmental agency, Citigroup, Inc., or Salomon Smith Barney, Inc., and are subject to investment risks, including the loss of the principal amount invested. Please see the program disclosure statement for the Scholar's Choice program for more information, including fees and expenses and a description of the risks associated with an investment in the program.

Citigroup (NYSE:C), the preeminent global financial services company, 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.

Citibank credit cards are issued by Citibank (South Dakota), N.A., a member of Citigroup.

The maximum amount of Citi card purchases eligible for UPromise Service for Citibank Cardmembers contributions is $30,000 per calendar year. UPromise contributions are available on all purchases, excluding card membership fees, balance transfers, cash advances, returned purchases, Citibank convenience checks and finance charges. The annual fee is $24.95 a year. See membership information for additional terms and conditions.