Citigroup Expands Presence in Central America through Acquisition

Citigroup announced today that it has reached a definitive agreement to acquire Grupo Financiero Uno (“GFU”), the largest credit card issuer in Central America, and its affiliates. The acquisition of GFU, with $2.1 billion in assets, will significantly expand the presence of Citigroup’s Latin America consumer franchise, enhancing its credit card business in the region, and establishing a strong platform for regional growth in consumer finance and retail banking. The financial terms of the transaction are not being disclosed.

GFU is privately held and has more than one million retail clients representing 1.1 million credit card accounts, $1.2 billion in credit card receivables and $1.3 billion in deposits in Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Panama as of September 30, 2006. This financial services provider operates a distribution network of 75 branches and more than one hundred mini branches and points of sale. GFU will continue to operate under its established brands during the integration.

The transaction, which is subject to regulatory approvals in the United States and each of the five countries, is anticipated to close in the first quarter of 2007 and is expected to be accretive to Citigroup’s earnings in the first year. Citigroup Corporate and Investment Banking was the sole advisor to Citigroup on this transaction.

“Citigroup’s acquisition of GFU is an important strategic step in our ongoing efforts to expand our consumer operations to better serve clients in Latin America,” said Charles Prince, Chairman and Chief Executive Officer of Citigroup. “It quickly and effectively extends our retail distribution capabilities into five additional Central American countries and complements the leading presence we have built in corporate banking in the region during the past 100 years.”

“GFU is an established leader in Central America with an attractive, profitable franchise,” said Manuel Medina-Mora, Chairman and Chief Executive Officer of Citigroup Latin America & Mexico. “It also operates in a market segment that has been growing at approximately 30% annually over the last few years.”

“GFU’s talented managers and employees, together with its extensive distribution network, will position us for continued growth in Central America. We look forward to serving this stable and increasingly attractive region and expanding innovative credit opportunities for consumers in the banking and consumer finance sectors,” Medina-Mora said.

Citigroup has operated in Central America for more than 100 years with a strong corporate investment banking presence in Costa Rica, El Salvador, Guatemala, Honduras and Panama. The company also has a credit card business in Panama.

Citigroup is present in 24 Latin America countries and has a leading position in corporate banking in the region, along with a growing consumer banking presence and strong client recognition and brand loyalty. The company operates more than 1,600 retail bank branches and 500 consumer finance branches in Mexico and Latin America, serving 13,000 corporate clients, 17 million retail bank clients and nine million credit card holders.