Citigroup Smith Barney Working Wealth Poll - February 2007 - Investment Outlooks, Real Estate & Home Remodeling.

Conducted by Greenwald & Associates and Synovate 

NEW YORK -- Citigroup Smith Barney has announced the results of its latest monthly poll of affluent investors. The poll was conducted with investors who have at least $100,000 in financial assets (excluding real estate and employer retirement plans), a definition that describes approximately 25% of all U.S. households. Investors with $1 million or more represent 44% of the interviews.

All results are specifically from those investors interviewed for the Citigroup Smith Barney Working Wealth Poll between January 10 and January 28, 2007. The poll does not reflect Citigroup Smith Barney predictions or recommendations.

Working Wealth Poll Highlights

Affluent investors in this Citigroup Smith Barney Working Wealth Poll provided their perspectives on trends in the investment climate and their personal finances. The poll also focused on real estate ownership and investments in home remodeling.

"In an environment of continued optimism about their portfolios, many affluent investors feel that now is a good time to put money in stocks and that real estate is still a good investment for the long term," says Craig Pfeiffer, Executive Vice President of Smith Barney.

* Half of all affluent investors believe that the investment climate is better today than it was a year ago; only 14% feel that things have gotten worse for investors. The wealthiest group (those with at least $1 million in assets) is even more optimistic, with 57% describing the investment climate as better than it was a year ago.

* Six in ten report that their investments performed better than expected last year, including 10% who describe their investment return as much better than expected.

* Positive views of the present are carrying over to optimism about the future performance of the economy. Nearly two out of three believe that the investment climate will continue to be good for at least the next six months. Nearly two-thirds overall, and more than eight out of ten among millionaires, anticipate that their own investments will meet or exceed expectations in the coming months.

* Investors continue to believe that now is a good time to invest in stocks or other equity based investments. At the same time, the number who feel it is a good time to put their money into bonds or other fixed investments has dropped by seven points over the past month.

* Last year's concerns about energy prices are abating -- while two-thirds of affluent investors expect that energy prices will be higher come next year, this result is down ten points from last month. The number of investors who expect energy prices to have a negative impact on the investment climate has also declined in the past month.

* Concerns about interest rates are also declining. Only 38% believe interest rates will rise in the coming months, which is lower than any scores from 2006 and only half of what affluent investors forecasted at the start of last year.

* Four out of ten overall, and more than half of those with $1 million or more, still consider real estate to be a good investment, even though three out of four expect the housing sector to remain weak or grow even weaker over the next twelve months.

* Nearly all of the investors in this poll own some type of real estate investment (typically accounting for one-third of their portfolio) and most report that the value of their real estate investments has increased over the past year. In particular, at least seven in ten who have money in a Real Estate Investment Trust (REIT) say the value of that investment has increased in recent months.

* Most of the affluent investors who own their own homes have undertaken major remodeling projects within the past two years. Those who have undertaken remodeling projects are twice as likely to have done so to upgrade the look and feel of their homes than they are to say that their goal was to fix an existing problem or head off future problems.

* While investors report having spent an average of about $17,000 on their recent home remodeling projects, they believe that the value their project added to their home is far greater ($34,000 on average). A kitchen remodeling is widely seen as having the greatest potential to add to the value of a property.

Background and Methodology

Greenwald & Associates and Synovate conducted the Citigroup Smith Barney Working Wealth Poll January 10 and January 28. Interviewing was conducted online with 575 investors who are members of the Synovate Consumer Opinion Panel. In order to qualify for participation, panel members had to have at least $100,000 in financial assets (excluding real estate and employer retirement plans), a definition that describes approximately one-quarter of all U.S. households. Survey results include 172 interviews with households that have $100,000 to $499,999 in savings and investments, 152 interviews with those in the $500,000 to $999,999 asset range, and 251 interviews with investors who have $1 million or more. Survey results have been weighted by age and asset level to reflect national population norms. The results of the Citigroup Smith Barney Working Wealth Poll have a maximum margin of sampling error (at the 95% confidence level) of plus or minus four percentage points.

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Mathew Greenwald & Associates, Inc. is a leading full service public opinion and market research firm that has been conducting customized research for our clients for over 20 years. Specializing in serving the research needs of financial services organizations, Greenwald & Associates has earned a reputation for extensive research knowledge, industry expertise, and commitment to serving the needs of our clients. For more information about Mathew Greenwald & Associates, call [phone] or visit www.greenwaldresearch.com.

Synovate, the market research arm of Aegis Group plc, generates consumer insights that drive competitive marketing solutions. The network provides clients with cohesive global support and a comprehensive suite of research solutions. Synovate employs over 5,000 staff in 107 offices across 50 countries. More information on Synovate can be found at www.synovate.com or call [phone].