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Citi Successfully Completes Tender Offer for Majority Stake in Nikko Cordial


New York – Citi announced today the successful completion of its tender offer to become the majority shareholder of Nikko Cordial Corporation. The tender offer period expired on April 26, 2007, with about 541.2 million shares tendered and accepted. Following the settlement of the tender offer for approximately $7.7 billion in cash on May 9, 2007, Citi will own a total ownership stake in excess of 60%.

“We are very pleased to now fully pursue our alliance with Nikko Cordial, a premier Japanese financial institution with whom we already have a strong relationship. Citi has operated in Japan for more than 100 years, and we are committed to deepening our client relationships and expanding our capacity to provide existing and new clients with best-in-class solutions in a key growth market for us,” said Charles Prince, Chairman and Chief Executive Officer of Citi.

“The successful completion of the tender underscores our focus on seizing opportunities to grow internationally both organically and through targeted acquisitions,” Mr. Prince continued. “The combination of Nikko’s local expertise, deep talent pool, strong brand, and extensive countrywide distribution network with Citi’s global reach and innovative products and services will benefit our clients and help drive future growth of both franchises.”

This alliance builds on the strong relationship that Citi and Nikko Cordial have forged over the past eight years and the success of their existing joint ventures, including Nikko Citigroup Limited, one of Japan’s leading investment banks and a strategically important part of Citi’s global capital markets and banking business.

“The strategic alliance immediately brings Citi’s Japanese businesses to scale and enables us to leverage new capabilities, including Nikko’s leading brokerage operation,” said Douglas Peterson, Chairman and CEO of Citibank Japan. “We will have the ability to access Nikko Cordial’s large network of corporate clients and capitalize on increased acquisition activity in Japan. The alliance will also allow clients to benefit from world-class global services that Nikko Cordial does not currently offer, such as Citi’s loan products.”

“We are very pleased that Citi’s tender offer has been successful. This strategic alliance is a significant step in positioning our company for future growth, helping us meet the evolving needs of our retail and corporate clients through our collaboration with Citi,” said Shoji Kuwashima, President and CEO of Nikko Cordial Corporation. “Nikko Cordial looks forward to strengthening our long and effective business relationship with Citi.”

Citi and Nikko Cordial, under the direction of a joint steering committee, will be identifying a wide range of opportunities to leverage their respective retail businesses, capital markets and banking businesses, technology and administrative services, asset management, principal investments, organizational structure, and employees and management in Japan.

For Citi, the transaction is expected to be neutral to earnings per share in 2007 and accretive in 2008 and thereafter.


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