Citigroup and WorldGate Communications Forging Groundbreaking Alliance To Provide Financial Services to Cable TV Industry.

NEW YORK--(BUSINESS WIRE)--Dec. 2, 1998--Citigroup's e-Citi unit announced today that it intends to form a strategic alliance with WorldGate Communications whereby Citigroup would become the exclusive financial services provider for the WorldGate(SM) Internet/television platform. This pioneering arrangement would enable WorldGate to offer cable operators and, in turn their subscribers, instant access to Citigroup's electronic financial services, featuring banking, brokerage and insurance products.

WorldGate's Internet TV Over Cable(SM) service provides cable TV operators a unique headend server approach to supplying subscribers fast, easy and inexpensive Internet access, E- mail and Channel HyperLinking(SM) through a standard advanced analog or digital cable converter, a wireless keyboard and a TV set. The subscriber does not need a computer, modem or phone line and there is no equipment to purchase.

Cable subscribers would have instant click-through access to these Internet-based electronic financial services through a Citi "button" on the WorldGate home page, together with a branded presence in other heavily trafficked WorldGate financial content areas. WorldGate's technology will allow cable operators who use this service to present Citi's "button" in a way that suits the branding and information needs of local subscribers. This level of customization will provide an important marketing tool for cable operators to promote their services across different franchises and geographic regions. In addition, the parties intend for e-Citi to perform as the electronic clearinghouse for all transactions conducted on the WorldGate platform, including bill payment and presentment, and merchant acquisition processing.

The WorldGate alliance represents another in a set of strategic alliances with leading communications companies that are helping to propel Citigroup's pursuit of a multifaceted distribution strategy, which complements the company's expansion of consumer access options through electronic channels. As Citigroup continues to expand its global customer base, new distribution channels will play a significant role. This relationship with WorldGate marks an important step towards reaching an attractive customer base of 69 million U.S. cable TV households in their living rooms via a familiar cable television environment.

"Our goal is to ensure that customers can conveniently access Citigroup whenever and however they want. We intend to provide that choice by pursuing relationships with important distribution channels that complement our PC-based electronic banking efforts," said Ed Horowitz, Corporate Executive Vice President at Citibank. "By starting to work with WorldGate and its innovative technology to offer access through the familiar cable TV environment, we have taken another important step towards enhancing Citi's service offerings and expanding our customer base."

"We're very pleased that this relationship with Citigroup will bring WorldGate system customers additional value and a new level of utility," noted Hal Krisbergh, Chairman and Chief Executive Officer of WorldGate Communications. "We see this step as another important milestone for WorldGate, the development of e-commerce and the evolution of cable television's role in the provision of financial services."

Background

Citigroup's e-Citi unit is driving the electronic delivery of Citigroup's banking, investment and insurance products and services to consumer and corporate customers. The e-Citi team is creating a suite of electronic products and services to meet customer needs in the evolving global economy. These solutions are designed to support the new electronic way of doing business. They offer content, access and choice as Citigroup continues to create a distinctive, global customer-driven, multi-purposed electronic experience.

Citigroup formed on Oct. 8, 1998 by the merger of Citicorp and Travelers Group Inc., consists of businesses that produce a broad range of financial services - asset management, banking and consumer finance, credit and charge cards, insurance, investments, investment banking and trading - and use diverse channels to make them available to consumer and corporate customers around the world. Among its businesses are Citibank, Commercial Credit, Primerica Financial Services, Salomon Smith Barney, SSBC Asset Management Group, Travelers Life & Annuity, and Travelers Property Casualty. For more information, please visit www.citigroupinfo.com

WorldGate Communications, Inc. provides cable subscribers with a fast, easy, inexpensive Internet/television experience using advanced analog or digital cable converter boxes and a television set. The WorldGate service enables full Internet access and e-mail, along with a new technology called Channel HyperLinking that allows instant connection from a television program or advertisement to a related Web page with the push of a single button on a remote control. With over 70 Channel HyperLinking television networks, WorldGate continues to receive enthusiastic support for its new technology. Interested parties can obtain more information by visiting the company's web site at www.wgate.com or by calling 1-800-796-9120.