Citigroup and ACORN Sign Groundbreaking Agreement to Expand Access to Financial Services in Communities Around the Country.

NEW YORK -- Citigroup (NYSE symbol: C) and the Association of Community Organizations for Reform Now (ACORN) today announced a landmark partnership that advances the goals of both organizations to promote homeownership in low- and moderate-income neighborhoods, especially in immigrant communities, increase the availability of affordable credit, and promote financial education. The partnership also reinforces Citigroup's position as a key industry leader in responsible and innovative lending practices.

As part of the partnership, announced today at an event in New York City, Citigroup and ACORN have agreed to collaborate on several initiatives, including to:

--Form an affordable mortgage-lending program between Citigroup and ACORN Housing Corp. (AHC) to develop a specialized mortgage product for all AHC's homeownership centers, and make mortgages available to immigrants who have previously been shut out of credit markets.

--Work together to expand access to the Earned Income Tax Credit, and, in immigrant communities, expand access to Citibank's Access Account and low-cost remittance program.

--Expand financial education to assist low- and moderate-income consumers in saving, obtaining credit, and using credit wisely.

--Focus on community development lending to increase affordable housing in areas where the Citibank Community Development and ACORN footprints coincide.

--Provide borrowers with access to the best combination of loan product, price, service, and attributes.

--Establish a net-benefit test for real estate secured loans.

"Citigroup is excited to announce this historic agreement," said Marge Magner, Chairman and CEO of Citigroup's Global Consumer Group. "By joining forces we can make great strides in building stronger communities and helping consumers who have not historically had banking relationships reach their goals and dreams."

"With this agreement, ACORN will be able to expand our mission of strengthening communities by helping low- and moderate-income families, including new immigrants to this country, become homeowners," said Maude Hurd, National President of ACORN.

Through the alliance, Citigroup and ACORN will work together to reach out to low- and moderate-income, underserved consumers across the country. In addition to real estate loans, Citigroup's affiliates are offering their breadth of products and services, including Citibank's Access Account, designed as a starter account for consumers who have not traditionally had banking relationships; Citipro, the bank's complimentary financial needs checkup; free online banking; and affordable money remittance services, among others.

For three decades ACORN has worked on behalf of its communities and constituents, and this agreement is a testament to its efforts. As a result of the agreement, ACORN communities will benefit even more from some of the best loan products, lending terms, and sales practices in the industry.

Among the changes made over the last three years, Citigroup's consumer finance unit, CitiFinancial, has halted the sale of single premium credit insurance on real estate secured loans, eliminated balloon payments on loans, and capped points on real estate loans originated through the CitiFinancial branch network at three points. CitiFinancial also agreed with ACORN to remove prepayment penalties after the third year of a real estate loan and to reduce the amount of the prepay penalty in the second and third years of the loan; CitiFinancial already offers borrowers the option of a loan without a prepayment penalty.

"This is another strong step in Citigroup's responsible, fair, and innovative leadership in the industry," said Kevin Kessinger, Executive Vice President of the Global Consumer Group and President of Consumer Finance North America. "By working together, Citigroup and ACORN can use the power of both organizations to improve the lives of our customers and create stable, healthy communities for the long term. This is the beginning of what we believe will be a long and successful relationship."

About ACORN

The Association of Community Organizations for Reform Now is the nation's largest community organization of low- and moderate-income families, with over 150,000 member families organized into 750 neighborhood chapters in 65 cities across the country. Since 1970 ACORN has taken action and won victories on issues of concern to its members. Priorities include better housing for first time homebuyers and tenants, living wages for low-wage workers, more investment in communities from banks and governments, and better public schools. ACORN achieves these goals by building community organizations that have the power to win changes - through direct action, negotiation, legislation, and voter participation.

About Citigroup Inc.

Citigroup is the preeminent global financial services company with some 200 million customer accounts in more than 100 countries, which 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 Life and Annuity. Additional information may be found at: www.citigroup.com.