2006 marked an important milestone in the history of Citibank Zrt. as the financial institution celebrated its 20^th anniversary of serving its clients and the community in Hungary. Over the past two decades it has built a reputation for innovation, bringing the opportunities of Citi's global network and cutting-edge services to bear for its clients in Hungary. As well as growing organically through innovation, the bank has made strategic investments, including selective acquisitions to develop its network and extend its product offering and knowledge base. In parallel to its business commitment, it continues to invest in the community in Hungary. Citi is committed to making a responsible contribution to the social and cultural fabric in Hungary and strives to make the communities better because it is there.

2006 was a successful business year for the franchise. Total assets grew from HUF 458.8 billion to HUF 597.8 billion, a 30 percent increase and before-tax profits increased by eight percent from HUF 16.2 billion to HUF 17.6 billion. The total loan portfolio at the end of 2006 was HUF 182.9 billion, recording a 14 percent growth over 2005 and deposits were at HUF 319.6 billion, recording a 7 percent increment over 2005. Return on equity (ROE) continued to be high at 38.50 percent, and return on assets (ROA) was at 2.54 percent for 2006. The shareholder decided to retain the earnings of 2006 in the country to allow sufficient capital to promote the bank's ambitious business plan.

Corporate and Investment Banking

Global Transaction Services (GTS) Hungary was an outstanding performer throughout 2006 achieving record revenues in the history of the franchise and significant growth in assets under custody and transaction volumes. This spectacular performance was achieved across every product line within GTS: Cash Management, Trade Services & Finance and Securities & Fund Services.

The franchise continued to grow in terms of new clients during 2006 with GTS acquiring a significant number of new clients across the different client segments: multinationals, financial institutions, top tier local companies and medium size enterprises. Securities & Fund Services maintained its market-leading position in the international client base and won market share in the local segment by winning service mandates from several investment funds and pension funds.

The commitment to increase service levels and enhance technology was recognized by clients through record high client satisfaction results in client and industry surveys. These include wins for Best Cash Management Bank in Central & Eastern Europe by Euromoney, Best Corporate/Institutional Internet Bank in Hungary by Global Finance for the second consecutive year; Global Investor magazine's European Clearing Survey ranking GTS number one in the "Best Bank for Settlement - Fixed Income" category and gaining "Top Rated" status by Global Custodian magazine's Agent Banks Emerging Markets Survey. This recognition from the clients and the market is supported by the unique relationship management approach and service through the different coverage groups for corporates and financial institutions in combination with an outstanding performance by CitiService, the exclusively dedicated customer service representatives team. Putting clients first at all times is the priority of the team and will continue to be the basic principle of their approach in the years ahead.

2006 was another successful year in the Treasury department that offers a wide range of Treasury products to clients with special attention to identification of their operational risks and offering tailored hedging solutions to reduce their risks. The Treasury department managed to maintain its leading position in derivatives trading on the local market.

The SME client base was serviced by both the Commercial Banking and CitiBusiness units.

The Commercial Banking unit, a growing part of the Corporate and Investment Banking segment, provides services to clients with an annual net revenue ranging from HUF 450 million to HUF 10,000 million. This business offers tailor-made account packages and financing solutions to clients in this segment. Its business philosophy is to build long-term relationships based on in-depth knowledge of its clients' activities and the sector. In addition to the relationship managers who are working closely with the clients to serve their financial needs, each client is also assisted by a dedicated CitiService representative, who is part of the unique telephone customer service. As a result to this structure and the flexible risk management, the Commercial Banking unit developed significantly its acquisitions in 2006.

Consumer Banking

2006 has been a spectacular year for growth and financial performance for the Consumer Business as well, the total consumer customer number increasing by close to 45,000.

It was an extraordinary year for the cards business as it introduced three unique credit cards on the Hungarian market: the Citibank Platinum Card in February, the Malev-Citibank co-brand card in August and the Shell MasterCard from Citibank in November. Platinum Credit Card holders enjoy a wide range of enhanced product benefits and exclusive platinum privileges through the Citibank Platinum Club, which allow customers to shop in extra style and comfort. Cardholders also enjoy a 24-hour Assistance Service, which includes providing information on cultural and other entertainment programs, arranging for gifts delivery, assistance with car and handyman services, among others.

The Malev-Citibank co-brand credit card is a unique reward based product that offers all the benefits of a Citibank credit card including security and flexible payments with the opportunity to collect Bonus Points for the Malév Duna Club Frequent Flyer Program. Whenever cardholders use their card for everyday purchases, fly with Malév or other partner airlines they accumulate Points and can then obtain bonus air tickets at Malév and partner airlines for destinations throughout the world.

The new Shell MasterCard from Citibank merges the convenience of paying with the credit card with a generous rebate program. The rebates collected on Shell fuel purchases in Hungary and abroad as well as on all other purchases at any outlet in the world accepting MasterCard are credited towards future purchases at domestic Shell stations.

Last January the bank introduced a virtual keyboard login system to the Citibank Online internet banking platform that prevents the customers' password being captured by any key logging software accidentally downloaded to the computer. The bank also launched a new fund transfer process that allows customers to initiate fund transfers exclusively to those beneficiaries that are included in the customer's Payee List within the Citibank Online system. As a result of this innovation the bank can now offer an online platform that while highly secure, is also user friendly, convenient, and fits the lifestyles of the customers. Global Finance magazine has awarded the bank with the Best Integrated Consumer Site and Best and Best Information Security Initiatives in Central and Eastern Europe Awards.

The CitiGold segment continued its dynamic development in 2006, the number of customers reached 4,200, a 28% growth compared to the end of 2005 and in terms of the total client assets portfolio the business reached a 22% expansion, surpassing HUF 141 billion by the end of the year. The bank's professionals are confident that their CitiGold Executives and the concept of CitiGold Wealth Management have provided significant help for the clients in adapting to the changing tax environment. The CitiGold proposition has been further built by introducing new products to the clients including new offshore mutual funds, structured investment products and the launch of the Platinum Credit Card, exclusively available to CitiGold clients.

In 2006 the Wealth Management business showed significant growth both in respect of products and client portfolios. The funds invested increased by 64% and the number of investment customers increased by 74%. The business has introduced Premium Savings, customers could subscribe to 12 different structured notes and 5 closed-end guaranteed funds. The mutual funds palette has grown with 16 mutual funds, out of which 15 was offshore, increasing the number of available mutual funds to 42.

CitiBusiness, which is housed in the Consumer Business segment, provides services to small and medium sized enterprises (SME) with an annual net revenue of up to HUF 450 million. CitiBusiness serves as a full service solution delivery partner to customers in this segment. In 2006 this business added a significant number of new customers to the CitiBusiness portfolio through offering enhanced relationship management and several new financing options such as the Welcome and Loyalty Loans and new collateralized schemes, attractive customer promotions and further improving the service delivery to customers. A key highlight of this was the repositioning of the 24 hour phone banking platform to enable the SME customers to perform a complete range of services and conduct complex transactions through dedicated customer service officers within the CitiPhone Banking.

Sponsorships and CSR Programs

Arts enrich lives of the communities. Strong cultural institutions and flourishing artistic expression are essential to the vitality of every community. That is why the bank has long supported arts and cultural programs in Hungary, and why it was proud to be key sponsor for The New York Photo Exhibition of the world famous photographer Tamás Révész in the KOGART House of Arts and for the Rembrandt 400 and Rembrandt and Us exhibitions in the Museum of Fine Arts in 2006.

Citibank Zrt. volunteers in Budapest joined more than 40,000 Citigroup volunteers in 100 countries for the company's first "Global Community Day." Around 100 volunteers of Citibank Zrt., including employees and their families and friends, worked on Saturday, November 18 to provide support to five institutions of Education and Childcare in Budapest and its surroundings.

With a grant of USD 160,000 from the Citigroup Foundation the bank continued the Citibank Financial Education School Program bringing economics, finance, mathematics and English-language teaching materials and books for 15,000 students in 36 elementary schools, three SOS Children's Villages and four Youth Home Facilities across Hungary.

The bank continued its Citigroup Corporate Finance Chair Program, supporting the Corvinus University of Budapest in its endeavor to increase the level of financial education and to offer its students access to the most up-to-date information and trends in the financial markets. This support is a result of a grant from the Citigroup Foundation and local Citigroup volunteers giving presentations and lectures to the students of the Department of Enterprise Finances.

Thirty secondary school students and 30 Economics teachers took part in the annual Economics for Leaders Summer Program in Hungary, which was also sponsored by the Citigroup Foundation.

Within the framework of the Habitat for Humanity House Building Employee Volunteering Program, four groups of 30-40 employees helped build affordable houses for families in Szarvas. The Citigroup Foundation supported the program with a grant of USD 40,000.

Additional community programs include support of integrated studies for blind students, Pecs Children's Hospital, and the Friends of Franz Liszt Music Academy.

Major financial data for Citibank Zrt.
(as of December 31st, 2006, according to Hungarian Accounting Standards)

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Credit card general APR: 41.75%. The APR has been calculated considering the actual terms and the effective laws; in case of the change of these terms the APR may also change. The APR does not reflect the interest risk of the credit. The Investment Products are subject to investment risks. Investment products are not bank deposits, are not government insured, are not an obligation of, nor are they guaranteed by Citibank/Citigroup or its other affiliates. Citibank Zrt. H-1051 Budapest Szabadság tér 7, Cg. 01-10-041029, Metropolitan Court acting as Court of Registration, PSZÁF III/41.048-9/2002, 20th December, 2002, a member of the Budapest Stock Exchange. www.citibank.hu

Media Contact:

Eva Hencz, Vice President, Public Affairs Officer, Citibank Zrt.
Tel: +36 1 374-5307, Mobile: +36 30 250-7473, Fax: +36 1 374-5378

About Citi
Citi, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Major brand names under the trademark red arc include: Citibank, CitiFinancial, Primerica, Citi Smith Barney and Banamex. Additional information may be found at www.citigroup.com or www.citi.com.