FOR IMMEDIATE RELEASE
November 4, 1999

Citigroup Companies Pledge $7.4 Million to Hartford Housing Revitalization Project

Unique financing package involving Citibank and Travelers builds on the company's long-standing commitment to the community

Hartford, Conn. — Citibank and Travelers Property Casualty today announced a $7.4 million leadership pledge to help revitalize two blocks of lower-income, inner city housing as part of the company's historic community reinvestment program.

          The funding is earmarked for the Mortson/Putnam Heights Project. Plans for the project call for the creation of 70 owner-occupied single and two family housing units through the rehabilitation of existing buildings and the construction of new housing. The plans also call for "streetscape" improvements and a low-interest loan fund to encourage existing property owners to improve their buildings.

          Heidi Miller, Chief Financial Officer of Citigroup, said, "Our support for the Mortson/Putnam Heights Project demonstrates the effectiveness of Citigroup companies working together to play a positive role in the communities we serve. The resources and support of Citibank and Travelers Property Casualty will help make the Mortson/Putnam Heights Project a reality. The success of this project is an important step forward in a city that has the lowest homeownership rate in the country on a per capita basis."

          Ms. Miller said, "Our involvement with this project also demonstrates the value of the federal Community Reinvestment Act (CRA). Citigroup's commitment of $115 billion over a ten-year period for loans and investments in low and moderate income communities and small businesses is helping to bring new life to our nation's cities and the people who live in them."

          Jay Fishman, President and CEO of the Hartford-based Travelers Property Casualty, said, "Travelers has been an active participant in the life of the Hartford community since we first opened our doors for business 135 years ago. Our financial support for the Mortson/Putnam Heights Project is proof of our ongoing commitment to the city we have long called home and builds on Travelers record of community involvement."

          The Citigroup leadership pledge for the project includes a construction bridge loan from Citibank; repayment of the loan through the purchase of historic tax credits by Travelers Property Casualty; and a Citigroup Foundation grant for a low-interest loan fund for the rehabilitation of existing housing in the neighborhood.

          In keeping with urban initiatives included in Citigroup's community commitment, Citibank will also offer competitive mortgage rates to those who buy the new housing units created by this project and Travelers will make available to eligible homeowners an insurance discount program offered under its urban markets program.

          The Mortson/Putnam Heights Project, with an overall development price tag of $10.3 million, will rehabilitate blighted buildings and increase homeownership on two streets -- Mortson Street and Putnam Heights. Each of the streets is one block long. They are located southwest of the State Capitol building near the Pope Park section of the city. The project builds on other revitalization efforts in the area near Trinity College.

          The purchase of tax credits generated from the project by Travelers will make use of The Connecticut Historic Homeownership Tax Credit, approved by the General Assembly in 1999. Under provisions of this legislation, tax credits are made available for the rehabilitation of certain owner-occupied, historic residential structures. The credits will be purchased by Travelers from the developer, Mortson/Putnam Heights Ventures, and applied against taxes owed to the state by the company.

          Mr. Fishman said, "The tax credit legislation represents a creative approach to urban revitalization by the state of Connecticut. These credits will attract the involvement of private enterprises, like Travelers, in the rebuilding of our state's cities. In addition, this project gives us the opportunity to expand our already sizeable presence in the minority homeowners market for insurance."

          Many of the buildings in the Mortson/Putnam Heights neighborhood have been abandoned or destroyed in fires. The buildings to be renovated are the best surviving examples of a signature style of Hartford architecture: the Perfect Six. These three-story brick structures -- built for turn of the century immigrants attracted to Hartford by jobs in expanding industries -- had two apartment units on each floor.

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