Sallie L. Krawcheck to Become Chairman and CEO of New Independent Citigroup Business Providing Equity Research and Private Client Brokerage Services

For immediate release
Citigroup Inc. (NYSE symbol: C)
October 30, 2002

Sallie L. Krawcheck to Become Chairman and CEO of New Independent Citigroup Business Providing Equity Research and Private Client Brokerage Services

Equity Research Will Be Independent from Corporate and Investment Banking and Underwriting

New Business to Operate Under “Smith Barney” Name

New York, NY — Citigroup (NYSE:C) announced the appointment of Sallie L. Krawcheck, 37, as Chairman and Chief Executive Officer of a new business unit which will include the company’s equity research and Private Client brokerage operations.

“This structure, under Sallie’s leadership, will help assure that all equity research at Citigroup will be independent of corporate and investment banking and underwriting. The unit will include the Global Private Client Group, with over 12,500 financial consultants, as well as Global Equity Research. It will operate under the Smith Barney name,” said Sanford I. Weill, Citigroup Chairman and Chief Executive Officer.

Sallie L. Krawcheck, who will report directly to Mr. Weill, will join Citigroup’s Management Committee and Business Heads Committee. Previously, Ms. Krawcheck was Chairman and Chief Executive Officer of the independent research firm Sanford C. Bernstein. Thomas Matthews, head of the Global Private Client Group and John Hoffmann, head of Global Equity Research, will report directly to Ms. Krawcheck. John, who announced his plans to retire at year-end, will work to ensure a smooth transition. Smith Barney will continue to be part of the SSB legal entity.

“This organizational change, with Sallie at the helm, is a giant step forward for Citigroup’s continuing effort to rebuild investor confidence and provide our clients with the highest quality service. As I have said, our Board and management team share my commitment to lead in raising the industry’s standards and are determined to take new initiatives to restore credibility among individual and institutional investors,” Mr. Weill said. “Over the last several weeks, we have been working closely with our regulators and have been considering a number of ways to address the issues challenging the industry. Our new structure is consistent with the goal of assuring the impartiality of research, which we share with our regulators. Our constructive conversations with regulators will continue and we will quickly implement any additional changes that are part of the revised regulatory framework.”

“I am delighted Sallie Krawcheck has agreed to join us and lead this new operation. Sallie is a strong advocate for research quality and independence. She is ideally qualified to establish the new business model for the Smith Barney research function, fully and solely focused on the needs of our retail and institutional clients and financial consultants. Her commitment to independent, high quality research will benefit not only our retail clients, but our institutional clients as well. Her talent, drive and unwavering focus on the customer will be great assets as we continue to build our Private Client brokerage franchise, already the most productive in the industry,” Mr. Weill said.

“I am excited at the prospect of continuing to develop what is already one of the world’s largest investment firms into a model for our industry. Delivering high quality, independent research is the right thing to do for our clients,” Ms. Krawcheck said. “Just last week, Salomon Smith Barney’s research unit was once again rated number one by Institutional Investor and we will build on the strength that we have with professional investors. Our objective going forward is to increase faith in the integrity and impartiality of the product. This will be accomplished through ever higher standards of performance, professionalism and independence. As we succeed, we will demonstrate that independent and unbiased research can profitably contribute to the overall value of a full service institution.

“I have spent years working in and analyzing the financial services industry from an investor’s perspective and I couldn’t have more respect for Sandy or Citigroup. I was particularly impressed with his commitment and seriousness about leading the industry and developing a new model for the industry. I am excited and grateful to have this opportunity. One of Sandy’s great loves is the Private Client business and I couldn’t have asked for a more determined or informed partner,” concluded Ms. Krawcheck.

In addition to her positions with Sanford C. Bernstein & Co., LLC., Ms. Krawcheck is Executive Vice President of its parent company, Alliance Capital Management, L.P. From 1999 to 2001, Ms. Krawcheck was the Director of Research at Sanford C. Bernstein. Prior to this, she was a senior research analyst covering the securities brokerage industry; her coverage also included life insurance. Before joining the firm in 1994, she was an associate in the Corporate Finance department at Donaldson, Lufkin & Jenrette and a financial analyst in Corporate Finance at Salomon Brothers Inc. Ms. Krawcheck was ranked number one in coverage of securities brokers by Institutional Investor from 1997 to 1999. She earned a B.A. from the University of North Carolina at Chapel Hill and an M.B.A. from Columbia University.

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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.