Citigroup announces integration of its corporate business, With Michael A. Carpenter and Victor J. Menezes as Co-Chief Executives.

NEW YORK--(BUSINESS WIRE)--Nov. 1, 1998--

Deryck Maughan becomes Citigroup Vice Chairman

Jamie Dimon announces plans to leave

Citigroup Inc. today announced that it is integrating the activities of its Salomon Smith Barney unit and the corporate banking activities of Citibank to form the world's strongest combined global investment and corporate bank. The combined entity will be headed by Michael A. Carpenter and Victor J. Menezes, reporting to John S. Reed and Sanford I. Weill.

Deryck C. Maughan will become a Vice Chairman of Citigroup, reporting to Mr. Weill and Mr. Reed. He will have responsibility for advising on the development and implementation of Citigroup strategy, including the integration of the investment and corporate banking client relationships worldwide and the group's overall activities in Japan.

Jamie Dimon, who had been President of Citigroup and Chairman and Co-Chief Executive Officer of Salomon Smith Barney, announced his decision to leave the company.

Sanford I. Weill, Chairman and Co-Chief Executive Officer of Citigroup, said of Mr. Dimon: "Jamie and I have enjoyed a remarkable relationship that has helped drive the growth of our company from its beginning, creating a company that is impressive in scope and accomplishment as well as solid value for all our shareholders. I am extremely proud of his many strengths and contributions, and although we will miss him, I expect nothing but good things for him moving forward."

John S. Reed, Chairman and Co-CEO, added: "I join with Sandy in recognizing Jamie's many contributions. I have come to know and admire his energy and abilities, which have been important to the company."

Mr. Dimon said: "My years with Sandy Weill have been a unique learning experience for me, one for which I will always be grateful. Moreover, as I look back on what has been built over the years we've been together, I feel pride of accomplishment. I know Citigroup is well poised for growth, so this is a perfect time for me to leave and regenerate with some new opportunities."

In a joint statement, Mr. Reed and Mr. Weill said:

"Today we are integrating the activities of Salomon Smith Barney and Citibank corporate banking and have named Mike Carpenter and Victor Menezes to lead the combined operation, the world's strongest integrated global investment and corporate bank.

"Mike and Victor are very talented managers who bring exceptional experience and capabilities to the opportunities before us. We have a base of private clients and corporate customers around the world who demand the highest levels of creativity and reliable access to liquidity to meet their funding and investment needs. With our dedicated professionals, including more than 10,000 Salomon Smith Barney Financial Consultants, as well as our broad product platforms and continuous commitment to technology, we will be the leaders in every category in this competitive business.

"As Co-Chief Executives jointly heading the integrated customer and product organizations, Mike and Victor will for efficiency have areas of primary oversight. Victor will have primary responsibility for Global Relationship customers and the Emerging Markets, as well as the transaction banking platform, including cash management, trade products and worldwide securities services. Mike will have primary responsibility for the Salomon Smith Barney Private Client activities, as well as investment banking and the capital markets product platform, including equities, fixed income, foreign exchange and derivatives.

"The corporate business, with annual revenues of approximately $20 billion, has built a product and customer franchise across the globe that has earned the respect of customers and competitors alike. Its 1998 third quarter was very disappointing, but with a clear priority to focus its activities in response to the changed market and outlook, the business is committed to deliver solid shareholder value in 1999 and beyond.

"To achieve that success, the combined organization needs to offer superior service to our investment banking, emerging markets, global relationship banking, and SSB clients. Mike and Victor will see that the strengths of both organizations are blended and that teamwork will be the hallmark of the business. Both Mike and Victor have a strong customer focus and broad experience - Mike managed lending and investment banking at General Electric before his success in leading our insurance operations, and Victor managed corporate banking and strategic activities in Asia and Latin America, in addition to heading Citibank's consumer business in Europe and serving as Citicorp CFO. They have a strong management team already in place in the businesses, with great breadth of experience. This pool of talent and energy gives us great confidence in their ability to achieve the full potential of the new integrated business -- to be the lead international bank for global customers, a leading global investment bank and securities firm, and an embedded bank in each of the emerging markets."

Citigroup Inc., which was formed by the merger of Citicorp and Travelers Group Inc. on October 8, 1998, provides a broad array of financial products and services to 100 million consumer and corporate customers through operations in 100 countries.

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