Statement By Robert B. Willumstad, President, Citigroup, Regarding Settlement of FTC Lawsuit Against Associates First Capital Corporation

FOR IMMEDIATE RELEASE
September 19, 2002

Statement By Robert B. Willumstad, President, Citigroup, Regarding Settlement of FTC Lawsuit Against Associates First Capital Corporation

New York — “We are pleased to resolve the FTC’s lawsuit regarding past lending practices of the Associates and appreciate its recognition of our efforts to raise consumer lending standards. When we bought Associates we found certain unacceptable practices that needed to be changed. We are confident that today’s settlement provides redress to those former Associates customers who were harmed. We’re gratified this matter is behind us.

“Since the acquisition of Associates in late 2000, we have implemented a series of significant best practices throughout our consumer finance operation. These reforms are grounded in our longstanding commitment to providing access to credit to those who need it most while setting consumer protection standards that lead the industry. Some of these, including our discontinuation of single premium credit insurance on real estate-based loans, have driven industry-wide change. We also recently announced enhancements to our sales practices and a substantial reduction in the maximum points on real estate loans made at CitiFinancial branches from 5 to 3 percentage points. This reduction sets us apart from our competitors in the industry.

“These new measures grew out of our experience implementing our initiatives and feedback we’ve received from consumers, community leaders, regulators and legislators. The relationships we forged over the past two years and processes we are continuing to implement will enable us to assure that our policies reflect best practices on an ongoing basis as the industry continues to evolve.”

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Citigroup (NYSE: C), the preeminent global financial services company with some 200 million customer accounts in more than 100 countries, provides 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, Primerica, Salomon Smith Barney, Banamex, and Travelers Life and Annuity. Additional information may be found at: www.citigroup.com.