Investments in luxury goods are not a luxury anymore!

Athens, March 15, 2007.

Citibank makes luxury affordable to all, by providing an opportunity to invest in the equities of the most famous luxury goods companies, with a minimum amount of 2,000EUR or USD. The new 3-year Luxury Notes combine the benefit from the possible rise of luxury goods’ equities with 100% capital guarantee at maturity, while the highest possible return may reach 39,99%. The Luxury Notes will be available from Citibank branches up to 29th March.

The Luxury Notes invest in a basket of the following 5 European luxury goods equities:

• Burberry Group Plc
  
• Compagnie Financiere Richemont AG: Cartier, Van Cleef & Arpels, Dunhill, Chloé, Baume & Mercier, Piaget, Panerai, Vacheron Constantin, Jaeger-LeCoultre, IWC, Montblanc, Montegrappa
  
• Hermès International
  
• LVMH Louis Vuitton Moët Hennessy SA: Moët & Chandon, Dom Pérignon, Louis Vuitton, Celine, Fendi, Donna Karan, Kenzo, Acqua Di Parma, Guerlain, Tag Heuer, Zenith, Sephora
  
• Julius Baer Holding AG – Ελβετικός οίκος υπηρεσιών private banking

The new Luxury Notes are addressed to those investors who believe that the luxury goods industry is today one of the fastest growing sectors and that the luxury goods and services business will continue to increase their profits. The prospects of the sector are supported by the following factors¹:

• The inelastic demand for luxury goods, which shows that luxury goods prices are rising at an extraordinary pace, while demand for luxury goods tends not to be affected.
• The historical out-performance of luxury goods equities. Since 1976, the prices of luxury goods have increased at double the rate of inflation.
• The increasing demand from emerging markets of Asia and Russia, where the luxury goods clientele grows at a fast pace.                       

If the basket's performance is positive over the investment period and as long as the performance of the basket remains below +40% at any time during the investment period (continuous observations), investors will receive 100% of their initial investment amount plus 100% participation in the positive performance of the basket. The maximum return on the Note is therefore 39.99% (13,33% annual return). If the basket's performance is equal to or above 40% at any time during the investment period (continuous observations), investors will receive 100% of their initial investment amount plus a coupon equal to 16% in EUR (5.33% annual return) and 21% in USD (7% annual return). In any case, even if the basket’s performance is negative over the investment period, investors will receive 100% of their initial capital, since it is protected by the issuer, Citibank International plc.

¹Source: Citigroup Research March and September 2006