Citigroup’s Investment in Nikko Beans

Nikko Beans
Nikko Beans has been established by The Nikko Securities Co., Ltd. as a securities company dedicated to providing financial services to the retail sector through the e-commerce distribution channels such as the Internet and telephone. Nikko Beans started its operations as from October 1, 1999. Additional information may be found at www.nikkobeans.co.jp.

Nikko Beans is offering: 1) brokerage of Japanese shares; 2) 89 investment trusts managed by 18 fund management companies; and 3) 26 life and non-life insurance products provided by 8 life and 7 non-life insurance companies.

Nikko Beans is currently providing its clients with investment information produced by the following research institutions: Nikko Salomon Smith Barney (equity); FISCO (equity); Standard and Poors IFIS (investment trust ratings); Nikkei Money (investment trust ratings); and Nomura Research Institute (investment trust ratings).

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.


	Printer Friendly Page		FOR IMMEDIATE RELEASE Citigroup Inc. (NYSE symbol: C) November 1, 1999 Citigroup’s Investment in Nikko Beans Strategic Alliance between Nikko Beans and Citigroup Nikko Beans, Inc. (“Nikko Beans”) and Citigroup Inc. (“Citigroup”) announced an agreement with respect to Citigroup’s investment in Nikko Beans and the strategic alliance between the two companies. I. Citigroup’s Investment in Nikko Beans Nikko Beans issued new shares to increase its paid-in capital to Yen 10 bn. from Yen 2.5 bn. This increasingly solid financial base will make it possible for Nikko Beans to strengthen its competitive position, and to make further investment in strategic areas. The payment date was October 27, 1999. Citigroup purchased new shares that account for 19% of the outstanding Nikko Beans shares. This investment made Citigroup the second largest shareholder in Nikko Beans after The Nikko Securities Co., Ltd. (“Nikko”) that owns 71.5%. Nippon Life Insurance Company and Mitsui Trust and Banking purchased the remaining shares for 5.0% and 4.5%, respectively. Citigroup will appoint one non-executive director to Nikko Beans’ Board. Nikko Beans Board will consist of the six members. The current members are as follows: Junichi Arimura, Chairman (also Managing Director of Nikko) Norio Suda, Chief Executive Officer Takehiko Moriyama, Director Shoji Kuwashima, Director (also executive director of Nikko) Timothy McCarthy, Director (also Chief Executive Officer of AdvisorTech Corporation) II. Strategic Alliance between Nikko Beans and Citigroup Nikko Beans and Citigroup, through Citibank N.A., Tokyo Branch (“Citibank Japan”), will enter into a strategic alliance as equal partners in the near future; and jointly pursue providing sophisticated financial services to the Japanese consumers through the e-commerce channel. Purposes of Business Collaboration Nikko Beans and Citigroup will collaborate in such a way that will enable each company to offer improved financial products and services to their respective existing and potential clients to the extent permitted by applicable legal and regulatory restrictions. Nikko Beans and Citibank Japan will seek the way to jointly introduce new marketing programs through the Internet to provide their respective clients with improved sets of products and services. Distribution Channels Nikko Beans and Citibank Japan will continue to operate its own web site for marketing and transaction purposes to their respective customers. Citibank Japan will also continue to provide its banking services and investment trusts through its existing distribution networks in Japan, while Nikko Beans offers equity brokerage, investment trusts, and insurance on the Internet. # # # Nikko Beans Nikko Beans has been established by The Nikko Securities Co., Ltd. as a securities company dedicated to providing financial services to the retail sector through the e-commerce distribution channels such as the Internet and telephone. Nikko Beans started its operations as from October 1, 1999. Additional information may be found at www.nikkobeans.co.jp. Nikko Beans is offering: 1) brokerage of Japanese shares; 2) 89 investment trusts managed by 18 fund management companies; and 3) 26 life and non-life insurance products provided by 8 life and 7 non-life insurance companies. Nikko Beans is currently providing its clients with investment information produced by the following research institutions: Nikko Salomon Smith Barney (equity); FISCO (equity); Standard and Poors IFIS (investment trust ratings); Nikkei Money (investment trust ratings); and Nomura Research Institute (investment trust ratings). 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.