Citigroup's Center for Community Development Enterprise Provides Comprehensive $30.1 Million Financing Package for Major Affordable Housing Project in San Francisco.

Business Editors

NEW YORK & SAN FRANCISCO--(BUSINESS WIRE)--July 5, 2000

Orlando Cepeda Place to be First Affordable Housing Built

in Mission Bay Redevelopment Project -- the Largest

Redevelopment Effort Undertaken in San Francisco's History

CCDE Draws Resources from Across Citigroup Businesses to Provide

Orlando Cepeda Place with a $30.1 Million Letter of Credit,

Bond Underwriting and Marketing Services, and a $15,000 Grant

Citigroup's Center for Community Development Enterprise (CCDE) will provide a comprehensive financing package to support the development of Orlando Cepeda Place, the first affordable housing to be built as part of San Francisco's Mission Bay Redevelopment Project. Orlando Cepeda Place will include 100 one-, two-, three- and four-bedroom apartments for very low-income residents, a child care center for 40 children, 15,000 square feet of common space, and a community room/computer education center. CCDE's financing package will include: letters of credit for $30.1 million from Citibank, N.A., bond underwriting and marketing services from Salomon Smith Barney, and a $15,000 grant from Citigroup Foundation.

"We are pleased to strengthen our commitment to low- and moderate-income communities by taking a leadership role in Mission Bay's Redevelopment Project," said Andrew Ditton, Director of Citigroup's Center for Community Development Enterprise. "This multi-faceted package is representative of how we at CCDE can offer our community development partners a 'one-stop financial shopping' approach. By drawing from numerous resources within Citigroup, CCDE has unparalleled capacity to innovate cost-effective and responsive financing to meet a broad range of community development needs."

"The long-term successful relationship we have enjoyed with Citibank as a permanent lender has helped MHDC to accomplish some difficult community development goals," said Carlos Romero, Executive Director of the Mission Housing Development Corporation in San Francisco. "Over the years, we really appreciated the fact that Citibank has been willing to work with us on some very hard to finance projects. We are pleased and excited at the prospect of taking that relationship to a new level by working with Citigroup to arrange the financing for Orlando Cepeda Place."

"Mission Housing is one of California's most seasoned and experienced affordable housing developers, and among our most valued customers," added Steve Hall, CCDE's Director of Community Lending in California. "Orlando Cepeda Place is a perfect example of the type of neighborhood-based development we intend to support with the financing tools now available through Citigroup's Center for Community Development Enterprise."

Orlando Cepeda Place will be developed by the Mission Housing Development Corporation, a not-for-profit organization noted for taking a holistic approach to community development by working to empower residents to improve their own living conditions. MHDC will be partnering with various agencies to provide on-site services such as: the Home Link After-School Mentor Program, On-Site Child Care, and San Francisco City Car Share.

Citigroup's CCDE financing package for Orlando Cepeda Place includes:

-- A $16 million Letter of Credit issued by Citibank, N.A. to

enhance tax-exempt bonds that will be issued by the San

Francisco Redevelopment Agency for construction of the

project. After construction, Citibank will issue a Letter of

Credit for approximately $14 million to enhance the tax-exempt

bonds for a longer period, both to bridge the equity

commitment of the limited partner and to provide long-term

financing.

-- Bond underwriting and marketing services provided by Salomon

Smith Barney, the nation's number one-ranked municipal finance

underwriter.

-- A $15,000 grant to assist with pre-development costs from

Citigroup Foundation.

The formation of Citigroup's Center for Community Development Enterprise was announced in 1998 as part of a commitment to lend and invest $115 billion over 10 years in low- and moderate-income communities and small businesses. CCDE is a business unit that harnesses the resources and skills of Citibank, Salomon Smith Barney and Travelers to help satisfy broad lending and investing needs. Working together, Citigroup's units can: 1) provide construction and term financing; 2) underwrite and place taxable and tax-exempt bonds; 3) make venture capital-like investments in small businesses and equity investments through funds; and 4) handle routine and specialty insurance needs. For customers, this can mean a single streamlined process and often better products and pricing.

CCDE's primary focus is affordable housing with consideration also given to community retail and special needs facilities. In addition, CCDE provides loans and operating lines of credit to non-profit organizations that provide important services to economically depressed neighborhoods. Markets served by CCDE include: California, Connecticut, southern Florida, Illinois, Nevada, New Jersey, the New York City metro area, Buffalo/Rochester, New York; Puerto Rico, South Dakota, and the Washington, D.C. metro area. Comprehensive financing packages are currently being developed by CCDE for projects in several of these markets and will be announced soon.

Citigroup's Center for Community Development Enterprise is a unit of Citigroup (NYSE:C), the most global financial services company, which provides some 100 million consumers, corporations, governments and institutions in 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. The 1998 merger of Citicorp and Travelers Group brought together such brand names as Citibank, Travelers, Salomon Smith Barney, CitiFinancial and Primerica under Citigroup's trademark red umbrella. Additional information may be found at: www.citigroup.com.