Court of Appeals Decision in California Federal Bank v. United States.

SAN FRANCISCO -- Contingent Litigation Recovery Participation Interests (NASDAQ:CALGZ); Secondary Contingent Litigation Recovery Participation Interests (Pink Sheets:CALGL)

Citibank (West), FSB, as successor to California Federal Bank (the "Bank"), in California Federal Bank v. United States (Civil Action 92-138), is the plaintiff in a breach of contract claim against the United States Government. In June 2003, the Bank filed an appeal of the December 17, 2002, decision of the United States Court of Federal Claims (the "Claims Court") that denied the Bank's claim for expectancy damages in the form of lost profits and its claim for prejudgment interest on the $23 million that the Claims Court had previously awarded the Bank as damages. The United States Government cross-appealed the Claims Court's liability decision. On January 19, 2005, a three-judge panel of the Court of Appeals for the Federal Circuit denied both the Bank's and the United States Government's appeals and affirmed the decision of the Claims Court.

Citibank (West), FSB is a member of Citigroup (NYSE:C). Citigroup, the preeminent global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing 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, Smith Barney, Banamex, and Travelers Life and Annuity. Additional information may be found at www.citigroup.com.