Citigroup Announces New Partners in Progress Fund for Innovation; Eight New York Area CDCs Receive $3 Million in Below Market-Rate Financing.

Business Editors

NEW YORK--(BUSINESS WIRE)--Nov. 29, 2001

Citigroup (NYSE:C) today announced the first recipients who will receive a total of $3 million in below market-rate financing from the company's new Partners in Progress Fund for Innovation.

The Fund for Innovation will make loans of up to $500,000 at 4% for up to three years to those community development corporations (CDCs) that have been previously awarded grants through Citigroup's Partners in Progress Program. Established by the Citigroup Center for Community Development Enterprise (CCDE) in collaboration with the Citigroup Foundation, the Fund will make loans for the development of affordable and special needs housing, community-based commercial facilities, and supportive services facilities, such as day care, health care, and educational and cultural centers. The Fund also will lend to small business loan funds.

Among the first Fund for Innovation loan recipients are: CDC of Long Island, Fifth Avenue Committee, Greenpoint Manufacturing and Design Center, Hope Community Inc., Renaissance Economic Development Corp., St. Nicholas Neighborhood Preservation Corp., South Bronx Overall Economic Development Corp. (SOBRO,) and University Neighborhood Housing Program.

"As we continue together in the enormous task of revitalizing New York's economy following the events of September 11th, we want to acknowledge the critical role that our local community development organizations are playing in this effort," said Marge Magner, Senior Executive Vice President and Chief Administrative Officer for Citigroup's Global Consumer Business. "We salute those CDCs that have been recognized for their achievements over the past five years through our Partners in Progress Program and look forward to supporting their work further by offering them the Fund for Innovation as a new source of affordable financing."

"Citigroup CCDE is pleased to provide loans from the Fund for Innovation," said Andrew Ditton, Director of Citigroup Center for Community Development Enterprise. "Being able to extend this flexible, early-stage capital strengthens our commitment to help CDCs focused on low- and moderate-income neighborhoods, and we are confident that many wonderful projects will be jump-started with these dollars."

Citigroup CCDE offers nonprofit and for-profit developers and businesses innovative and comprehensive financing packages for their projects in low- and moderate-income areas. As a member of Citigroup, CCDE taps resources and skills from across the company's units. Together, this diverse mix can finance projects, support operations through lines of credit, purchase tax credits, underwrite and market municipal bonds, manage funds, and address insurance needs.

Citigroup created its Partners in Progress Program in 1997 to help established community-based organizations revitalize distressed neighborhoods throughout the New York metro area. In addition to receiving a $50,000 grant, those organizations selected as Citigroup's Partners in Progress can take advantage of resources, such as tailored loan products and technical assistance, offered by Citigroup's subsidiary, Citibank. Recipients also are invited to participate in the Citigroup Community Development Institute, which provides working sessions for nonprofit professionals to assist them in addressing operational issues and developing business plans to improve their organization's efficiency. To be considered for Citigroup's Partners in Progress Program, organizations may contact Brandee McHale at 212/559-4772.

Citigroup (NYSE:C), the preeminent global financial services company with some 190 million customer accounts in more than 100 countries, provides consumers, corporations, governments and institutions 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 red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Travelers. The Citigroup Foundation primarily focuses its grant making in three areas: financial education, educating the next generation, and building communities and entrepreneurs. Additional information may be found at: www.citigroup.com.