Citicorp Finances TGV Trains With Innovative Tax Lease.

NEW YORK--(BUSINESS WIRE)--September 29, 1999--

Citicorp Global Equipment Finance announced today it has completed an equity investment in a $300 million U.S. leveraged lease for Societe Nationale des Chemins de Fer Francais, ("SNCF"), the French national railway company. The cross-border lease provides US dollar-based financing for SNCF's used and rebuilt TGVZ 2300 and TGVZ 3300 high speed trains.

The leveraged lease was structured as a "Service Contract After Lease Expiry" transaction, ("SCALE"), and provides an innovative cross-border financing solution to the French national railway. "We are really excited about SCALE," said Eric Press, Managing Director of Citicorp Global Equipment Finance, and a lead transactor. "This structure is a unique integration of our rail equipment and market expertise with tax and accounting solutions. It is a very attractive financing alternative to the structures eliminated by recent tax rule changes."

With a global portfolio of over $10.5 billion, Citicorp Global Equipment Finance, a business unit of Citigroup, is the second largest U.S. bank-owned leasing company and a leader in global asset and equipment finance. Citicorp Global Equipment Finance provides a broad range of funding solutions to customers in transportation, material handling, technology, power and energy, construction, energy management, quick-service restaurants, automotive services, telecommunication, and other industries throughout the world. For more information about Citicorp Global Equipment Finance, visit the company's web site at http://www.citicorp.com/gef.