CitiCapital to Sell Canadian Fleet Management Operation to GE Capital Fleet Services

    TORONTO & DALLAS--Aug. 31, 2001--CitiCapital, the global commercial leasing business of Citigroup (NYSE symbol: C) today announced an agreement to sell CitiCapital's Canadian automotive fleet management business, Associates Fleet Services, to GE Capital Fleet Services, a unit of GE Capital. This transaction does not include CitiCapital's fleet management business in the United States or the United Kingdom. The total assets being sold to GE Capital Fleet Services through this transaction are valued at approximately US$490 million. Additional terms were not disclosed. The transaction is expected to close in September 2001.
    "We remain fully committed to the fleet management industry and will continue to look for growth opportunities for this business both in the United States and abroad" said Roy Guthrie, President and CEO, CitiCapital. "The sale of our Canadian fleet operation occurred entirely as a result of Canadian banking regulations that prohibit banks from owning more than 25% of any company engaged in automobile leasing. This regulation does not impact our other businesses in Canada." CitiCapital's U.S. based Fleet operation will continue to offer a North American solution for customers.
    Citigroup entered the fleet management business through its acquisition of Associates First Capital Corporation in November 2000, and the commercial leasing division was renamed CitiCapital in March 2001. CitiCapital is a leader in the fleet management business in North America, with more than 360,000 vehicles under management.
    CitiCapital, with a current global portfolio of $35 billion, is among the largest U.S.-based commercial finance businesses, reaching more than 500,000 customers throughout the world. CitiCapital is a market leader in truck, construction, material handling, healthcare and office equipment finance, as well as franchise and municipal finance, fleet and relocation management services.
    Citigroup , the preeminent global financial services company, provides some 120 million consumers, corporations, governments and institutions in more than 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. Major brand names under Citigroup's trademark umbrella are Citibank, CitiFinancial, Primerica, Salomon Smith Barney, and Travelers. Additional information may be found at: www.citigroup.com.