Citibank establishes American Depositary Receipt program for KPN; The new program reflects the increasing interest among telecommunications companies in using depositary receipts to tap the U.S. capital markets.

NEW YORK--(BUSINESS WIRE)--Dec. 16, 1994--Citibank is pleased to announce that it has established an American Depositary Receipt (ADR) program for Royal PTT Nederland NV (KPN), the primary postal and telecommunications company in the Netherlands.

American Depositary Receipts, which are negotiable certificates that represent shares of stock in a non-U.S. company, trade on U.S. stock exchanges and provide U.S. investors with a convenient and cost-effective way to invest in non-U.S. companies.

The American Depositary Shares for KPN's program, for which Citibank acts as depositary, will trade over-the-counter on the National Association of Securities Dealers Automated Quotations (NASDAQ) electronic system. The program was recently approved by the U.S. Securities and Exchange Commission and can trade publicly along side the company's previously established Rule 144A ADR program, which is available only to Qualified Institutional Buyers (QIBs).

Each American Depositary Share (ADS) issue under the program represents one ordinary share. The ADSs will trade under the symbol "RPTNY" (cusip no.780641205).

KPN offers a wide range of postal and telecommunication services within the Netherlands. The group also provides cable television, car leasing and security services in the Netherlands. Postal and telecommunications services are provided by the company's major subsidiaries, PTT Post and PTT Telecom.

According to its 1994 half year report, issued on June 30, KPN had total operating revenues of 9.09 billion guilders and net income of over 1.01 billion guilders. Total assets were 25.9 billion guilders.

"KPN's new program demonstrates the flexibility depositary receipts offer issuers in meeting a variety of needs, and this is a primary reason why they have become such an important financing tool," noted Citibank Country Corporate Officer Romeo Van Der Borch. ^ So far, 27 telecommunications companies have launched depositary receipt programs, many as part of government-driven privatizations. Besides KPN, telecommunications companies this year who have launched depositary receipt programs include: Nippon Telegraph and Telephone Corp. (NTT), Nokia Corp., Pakistan Telecommunications, Indosat, Empresas Telex-Chile, Tele West Communications, Philippine Long Distance Telephone, Star Paging International Holding Ltd., Tele 2000, Tele Danmark A/S, Telefonica de Argentina S.A., and Thai Telephone & Telecommunication.

Citibank is a leading depositary serving over 500 issuers worldwide. The bank began offering depositary receipt services in 1928 and has been the leading market innovator in recent years. With a local presence in over 90 countries and unsurpassed proprietary on-line information, Citibank is uniquely qualified to support the funding needs of issuers around the world.

Citibank The Netherlands is one of the leading foreign banks in the Netherlands. It was established in 1964 and offers a wide range of commercial banking, corporate finance and securities services to major Dutch enterprises. Securities services comprise, amongst others, custodial services to Dutch and non-Dutch institutional investors as well as depositary receipt programs to internationally known Dutch corporate entities.

CONTACT: Citibank, New York 

             Jarvis Cromwell, 212/657-0195
              or
             KPN, Investor Relations
             Jose Tijssen, 31-50-822683