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DTCC Creates Seamless Settlement Solution for Foreign Ordinary Share Trading

Agreement With Citibank Supports Hong Kong Equities

New York, NY, September 10, 2001 - The Depository Trust & Clearing Corporation (DTCC) today announced that it will offer its participants a way to settle foreign ordinary trades in certain equities listed on The Hong Kong Stock Exchange. This new service will be extended through an agreement with Citibank N.A., Hong Kong, and will be available for trades executed in U.S. dollars and settled at DTCC's depository.

Up to now, these transactions had been available for comparison and nettingat DTCC's clearing subsidiary. However, settlement of the securities occurredin the local market and the money payment took place in the U.S. in dollars.Without a simultaneous exchange of securities and money, known asdelivery-versus-payment (DVP), the cost and risk of settling these types oftransactions is significantly greater than trades of U.S. securities.

With this new solution, Citibank's Hong Kong branch will hold the shares onbehalf of The Depository Trust Company (DTC), a subsidiary of DTCC. Participantswill then be able to move shares from their current overseas location into DTC'saccount at Citibank. Once the position is on DTC's books, the participant willbe able to settle trades by book-entry DVP, the same way U.S. securities settle.

"This initiative in Hong Kong is a major step forward in DTCC'sinternational strategy," said Jeffrey H. Smith, Managing Director of DTCCInternational Services, "For the first time, we'll be able to extend thebenefits of our infrastructure to help our customers settle these foreign equitytrades as quickly, easily and efficiently as U.S. equities. This is the first ofmany agreements we plan to establish in overseas markets to optimize thesettlement of foreign ordinaries for our customers."

"We're extremely pleased that Citibank's extensive clearingcapabilities around the world can be leveraged to help improve the efficiencyand stability of international stock settlement," said Vira-AnongChiranakhorn, Securities Country Manager for Citibank Hong Kong's WorldwideSecurities Services.

"With the increase in global equity trading," continued DTCC'sSmith, "our customers have voiced their concerns about the potential riskand operational issues associated with U.S. dollar settlement of foreignordinaries."

The solution is an extension of a service provided by DTCC's clearingcorporation subsidiary since 1988, called the Foreign Securities Comparison andNetting System (FSCN). The system standardizes and automates the comparison andnetting of non-U.S. equity transactions, similar to the process forover-the-counter U.S. equity transactions. While FSCN provides advantages bynetting trades on a bi-lateral (participant-to-participant) basis and generatingreceive and deliver instructions, delivery of securities and funds still occursoutside the system and is left to the trading parties.

"This solution will eliminate what's been a very cumbersome settlementprocess for us," said Jeffrey Bernstein, Senior Managing Director, Bear,Stearns Securities Corp. "Now, we'll be able to settle these foreignordinaries at a lower cost and with less risk."

About DTCC: The Depository Trust & Clearing Corporation (DTCC), with operating facilities in multiple locations in the U.S. and overseas, is a holding company for six subsidiary businesses - a depository and five clearing corporations - as well as the co-owner with Thomson Financial of a global joint venture called Omgeo. Through its subsidiaries, DTCC provides clearance, settlement and information services for equities, corporate debt, municipal debt, government securities and mortgage-backed securities in the U.S., and emerging markets debt trades globally. It is also a leading clearinghouse for mutual funds and insurance products, linking funds and carriers with distribution networks. In addition, DTCC provides custody and asset servicing for more than two million securities from the U.S. and 84 other countries. For more information on DTCC, see www.dtcc.com.

Citibank
Citibank Worldwide Securities Services (WWSS) serves global issuers, investors and intermediaries through the industry's largest proprietary network, spanning 52 countries. It currently provides securities services to more than 2,500 customers worldwide and has over $4 trillion in assets under custody. WWSS is the industry's premier custodian of cross-border assets, top ranked global clearer and recognized leader in depositary receipt services, and agency and trust services. The local presence of WWSS, supported globally by Regional Service Centers, ensures clients of consistent transaction processing worldwide, proprietary control of clearing cycles and reduced risk in all cross-border securities transactions.

Citigroup (NYSE:C), the preeminent global financial services company,provides some 120 million consumers, corporations, governments and institutionsin more than 100 countries with a broad range of financial products andservices, including consumer banking and credit, corporate and investmentbanking, insurance, securities brokerage and asset management. Major brand namesunder Citigroup's trademark umbrella are Citibank, CitiFinancial, Primerica,Salomon Smith Barney, and Travelers. Additional information may be found at: www.citigroup.com.