Citigroup Acquires Affordable Housing Debt Business of Capmark Financial.

NEW YORK -- Citigroup Corporate and Investment Banking announced today that it would purchase the assets of the Affordable Housing Debt Business of Capmark Financial Group Inc. (CAHD). CAHD is a boutique underwriter specializing in the affordable multifamily housing sector. Terms of the transaction were not disclosed.

The acquisition combines CAHD, the nation's leading affordable housing banker and underwriter with approximately $1.2 billion of assets, with Citigroup Corporate and Investment Banking, whose Municipal Securities Division consistently leads the industry as an underwriter of state and local government debt as well as a leading counterparty in the municipal secondary market. CAHD and its predecessor companies have led the industry in the number of tax-exempt multifamily properties financed 15 out of the last 16 years.

"We are excited to acquire Capmark's strong affordable housing business and work with the company's seasoned professionals," said Ward Marsh, head of the Municipal Securities Division within Citigroup Corporate and Investment Banking. "Affordable multifamily housing offers significant growth opportunities, and we look forward to deepening our client relationships and extending the benefits of our industry-leading municipals franchise in this important market sector."

"As a franchise long devoted to serving state and local issuers with financing for the affordable multi-family housing sector, we are delighted to join forces with Citigroup, whose municipal finance business is second to none. Our developer clients and the thousands of families whose housing needs are served each year by the properties CAHD finances will be the principal beneficiaries of this newly formed, energized municipal finance platform," said Hal Kuykendall, President of CAHD.

CAHD is one of the leading providers of tax-exempt affordable housing financing and consists of four businesses: Investment Banking/Originations, GSE Affordable Housing Finance, Conduit Bond Finance, and Bond Remarketing.

The acquisition of CAHD also enhances Citibank's Community Development ("CCD") franchise, which will benefit from increased construction lending origination brought by Capmark's banking team, and an expanded product suite.

Citigroup (NYSE: C), the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Major brand names under Citigroup's trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney and Banamex. Additional information may be found at www.citigroup.com.