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Salomon Smith Barney Enhances Its World Government Bond Index.

Business Editors

NEW YORK--(BUSINESS WIRE)--March 22, 2000

Salomon Smith Barney today announced enhancements to its World Government Bond Index(SM) (WGBI) and its Eurodollar, Eurosterling, and Euroyen Bond Indexes. These changes reflect a number of developments in the European fixed income market, particularly a trend toward larger issue size across all fixed income products.

In constructing benchmarks, Salomon Smith Barney tries to fairly represent the portion of the overall bond market in which an institutional investor can reasonably participate. Also considered are those segments that are of most interest to the investment community. The following enhancements are largely based on the fact that most government issuers have increased the size of individual bond issues or reopened existing issues in order to increase liquidity.

Introduction of the Greek Government Bond Index

Salomon Smith Barney in April will introduce the Greek Government Bond Index. Initially, this Index will track the performance of the Greek Government bond market as an Additional Market Index, but Greece is expected to enter the WGBI in July 2000. The Index will include all outstanding Greek Government bonds that meet the following criteria: Composed of sovereign debt denominated in the domestic currency; Carry a fixed rate; Has bullet redemption feature; Has at least one year remaining to maturity; And has a minimum amount outstanding of GRD300 billion. Below is the profile of the Greek Government Bond Index as of March 2000:


----------------------------------------------------------------------
 Greek Government Bond Index -- Profile Statistics as of March 2000
----------------------------------------------------------------------
 Number Par Amount Market Market Yield To
 of (GRD Value(GRD Weight Maturity Maturity Duration
 Issues billions) billions) (%) (%) (Yrs) (Yrs)
----------------------------------------------------------------------
Greece 12 11,669 12,591 100.00 6.34 7.0 5.01
------------
1 - 3 Years 2 1,454 1,546 12.28 6.23 1.9 1.72
------------
3 - 7 Years 5 4,220 4,549 36.13 6.22 4.6 3.71
------------
7 - 10 Years 3 4,260 4,691 37.26 6.42 8.3 5.94
------------
10+ Years 2 1,735 1,804 14.33 6.53 13.7 8.65
----------------------------------------------------------------------

Increased Minimum Amounts Outstanding for Bond Inclusion in the WGBI

 Beginning this July, the minimum amount outstanding required for
bonds to be included in the WGBI will be increased. The minimum
amounts for inclusion are described in the table below:

----------------------------------------------------------------------
World Government Bond Index and Additional Market Indexes -- Minimum
Amount Outstanding for Individual Bond Inclusion Effective July 2000
----------------------------------------------------------------------
Sector Changing New Minimum Amount Old Minimum Amount
 Outstanding Outstanding
----------------------------------------------------------------------
 Canada CAD1 billion CAD250 million
 Denmark DKK10 billion DKK1.5 billion
 Japan JPY500 billion JPY200 billion
 Norway NOK20 billion NOK5 billion
 Sweden SEK10 billion SEK1 billion
 Switzerland CHF1 billion CHF200 million
----------------------------------------------------------------------
 Sector Not Changing Current Minimum Amount
 Outstanding
----------------------------------------------------------------------
 Australia AUD250 million (net of LCIR amounts)
 EMU Countries EUR1 billion
 New Zealand NZD100 million
 United Kingdom GBP400 million
 United States USD1 billion public amount outstanding
----------------------------------------------------------------------

Implementation of Investment Grade Requirement for WGBI Components

 In the future, components to the WGBI will need to satisfy
minimum credit criteria for local (internal) debt of BBB-/Baa3 by
either Standard & Poor or Moody's. This rule will have no immediate
impact on the components of the Index, but is intended to be an
important guideline going forward.
 Presented below is the pro forma profile statistics of the WGBI
given the increased minimum amounts outstanding and the likely
inclusion of Greece in July:

----------------------------------------------------------------------
 Par Amount (Billions USD) Market Weight (%)
 ------------------------- -------------------------
 New Old Diff New Old Diff
----------------------------------------------------------------------
World Govt Bond 5,816.5 5,967.7 -151.2 100.00 100.00 0.00
 Index (WGBI)
Non-US WGBI 4,141.3 4,292.5 -151.2 71.65 72.45 -0.80
Non-Japan WGBI 4,421.7 4,397.9 23.8 75.81 73.30 2.51
Non-Euro WGBI 3,787.3 3,938.5 -151.2 65.55 66.52 -0.97
----------------------------------------------------------------------
United States 1,675.2 1,675.2 0.0 28.35 27.55 0.80
Canada 167.8 174.6 -6.8 3.00 3.06 -0.06
Australia 32.2 32.2 0.0 0.57 0.55 0.02
Japan 1,394.8 1,569.8 -175.0 24.19 26.70 -2.51
EMU Govt Bond 2,029.2 2,029.2 0.0 34.45 33.48 0.97
 Index (EGBI)
- Austria 60.9 60.9 0.0 0.98 0.95 0.03
- Belgium 143.8 143.8 0.0 2.57 2.49 0.07
- Finland 39.2 39.2 0.0 0.70 0.68 0.02
- France 444.3 444.3 0.0 7.70 7.49 0.22
- Germany 478.6 478.6 0.0 7.95 7.72 0.22
- Ireland 18.8 18.8 0.0 0.28 0.27 0.01
- Italy 488.0 488.0 0.0 8.26 8.03 0.23
- Netherlands 150.5 150.5 0.0 2.55 2.48 0.07
- Portugal 28.0 28.0 0.0 0.46 0.45 0.01
- Spain 177.2 177.2 0.0 3.00 2.92 0.08
Denmark 65.7 66.3 -0.6 1.14 1.12 0.02
Greece 33.7 0.0 33.7 0.59 0.00 0.59
Sweden 75.1 75.1 0.0 1.33 1.29 0.04
Switzerland 24.0 26.5 -2.5 0.40 0.43 -0.03
United Kingdom 318.8 318.8 0.0 5.98 5.82 0.17
----------------------------------------------------------------------
Additional Market
 Indexes
New Zealand 6.9 6.9 0.0 0.00 0.00 0.00
Norway 14.6 14.6 0.0 0.00 0.00 0.00
----------------------------------------------------------------------


Changes to the Eurodollar, Eurosterling and Euroyen Bond Indexes

A recent review of minimum amounts outstanding in our Eurobond indexes resulted in the changes as outlined below. Please note, all changes are effective with the July 2000 index profile construction and will not affect the euro-based Euro Broad Investment-Grade Bond Index(SM) and Euro Broad Investment-Grade Bond Index(SM):

Eurodollar Bond Index - The amount outstanding required for entry into this Index will be increased to US$250 million from US$150. Issues already in the Index with amounts below US$250 million will be removed.

Eurosterling Bond Index - The amount outstanding required for entry into this Index will be increased to (pound)150 million from (pound)100 million. Those issues already in the Index with amounts below (pound)150 million will be removed.

Euroyen Bond Index - The amount outstanding required for entry into this Index will be increased to (Y)50 billion from (Y)40 billion. Those issues already in the Index with amounts below (Y)50 billion will be removed.

Salomon Smith Barney is a global, full-service investment banking and securities brokerage firm. The firm's 11,400 Financial Consultants located in approximately 476 offices across the United States, service over 6.6 million client accounts, representing over $950 billion in client assets. Salomon Smith Barney is a subsidiary of Citigroup.

Citigroup (NYSE:C), the most global financial services company, provides some 100 million consumers, corporations, governments and institutions in 100 countries with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage and asset management. The 1998 merger of Citicorp and Travelers Group brought together such brand names as Citibank, Travelers, Salomon Smith Barney, Commercial Credit (now named CitiFinancial), and Primerica under Citigroup's trademark red umbrella. Additional information may be found at: www.Citigroup.com.
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