Citigroup Commemorates Retirement of Former Chairman and Co-CEO John S. Reed With $2.5 Million Grant to CERGE-EI Foundation.

Business Editors

PRAGUE and NEW YORK--(BUSINESS WIRE)--June 2, 2000

Grant Endows Professorships and Student Fellowships in First

American-Style Economics Ph.D. Program in Central and Eastern

Europe and the Former Soviet Union

Citigroup Inc. (NYSE: C) today announced it will make a gift of $2.5 million to CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute) Foundation, USA, to support the first American-style economics program leading to a Ph.D. degree in Central and Eastern Europe and the former Soviet Union. The gift commemorates the achievements of Citigroup's former Chairman and Co-CEO, John S. Reed, who retired from Citigroup after a 35-year career at the company this past April and serves on CERGE-EI Foundation's Board of Directors. The grant, which will be made in the form of a Citigroup Foundation grant and distributed over a multi-year period, will endow professorships and student fellowships at CERGE-EI.

"We are pleased to make this special gift in recognition of John," said Sanford I. Weill, Chairman and CEO of Citigroup Inc. "This grant to CERGE-EI is particularly appropriate in light of his leadership in creating what is today the largest and most well-known global banking enterprise in the world, with strong roots in all of the 100 countries in which it does business. We are pleased to support, on his behalf, an educational program focused on preparing a new generation of global economic leaders."

"I am grateful to Citigroup for making this generous contribution to a program that supports the future economic growth of a key emerging market region," said Reed. "CERGE-EI and its highly credentialed faculty have played a critical role in the economic life of Eastern Europe by nurturing home-grown talent and retaining promising students within the region. This grant will support the continued development of this important institution's curriculum and faculty."

"As it enters its second decade, CERGE-EI faces two major challenges," said Jan Hanousek, Director of CERGE-EI. "One is to expand its student body to under-represented regions and the other is to secure financial stability so it can make long-term commitments to senior faculty. This gift from Citigroup will go a long way in helping us to meet these most critical needs."

CERGE-EI's Ph.D. program is complemented by world-class economics research primarily focused on issues related to the ongoing economic transition of the region. The 120 students enrolled in the program are chosen from throughout Central and Eastern Europe and the former Soviet Union. Selection is based on academic merit without regard to a student's financial means. CERGE-EI's faculty includes graduates of Princeton, University of Chicago, University of Minnesota and NYU.

Currently a candidate for U.S. accreditation, CERGE-EI has been recognized for excellence in Ph.D. studies in economics by both the European Union's PHARE/ACE and USAID. In 1999, CERGE-EI was selected to act as the region's coordinating institute for the World Bank's Global Development Network. CERGE-EI also has been cited by the World Bank and others as a model to be emulated in establishing economics training programs throughout the Soviet Union. More information may be found at: www.cerge-ei.cz.

Citibank, a member of Citigroup, supports a range of community activities in the Czech Republic with a focus on education. These include sponsorship of the following organizations: Anglo-American College; Fund for American Studies; Junior Achievement; International School of Prague; and the Center for Economic and Graduate Education, Charles University.

Citigroup Foundation's global giving program focuses on education and community development, along with funding a limited number of programs in arts education, and health and human services. Citigroup (NYSE:C) is the most global financial services company providing 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.