After more than 22 years of successful operations in Hungary, Citibank Zrt. will be converted into a branch of Citibank Europe plc (CEP) based in Ireland effective January 1, 2009. The branch conversion to be implemented in the form of a cross-border merger has been approved both by the Irish and Hungarian financial regulator and the name of the new vehicle will be Citibank Europe plc Hungarian Branch Office.

Batara Sianturi, Citi Country Officer for Citibank Hungary said, "This legal step is part of a global strategic effort to rationalize the organizational structure within Citi, a process that started three years ago in our region and it will result in the establishment of an enhanced legal vehicle with European presence. Our physical presence in the country and services provided to our clients will continue unchanged and will improve in various areas. As Citibank Europe plc Hungarian Branch Office we will remain a member of Citi, the world's leading financial services group and will continue to offer our global products and services as well as leading with our innovations to bring the best financial solutions for our clients in Hungary."

"As a branch of CEP, we will be part of a European entity with a larger balance sheet and a greater lending capacity that will make us an even stronger partner for our clients in Hungary and will allow us to expand more effectively in the market", added Mr. Sianturi.

Citibank Europe plc is a fully licensed bank based in Ireland, regulated by the Irish Financial Services Regulatory Authority and is rated Aa3 by Moody's external rating agency. CEP had a balance sheet size of EUR 6.8 billion and a capital base of EUR 1.4 billion at year-end 2007.

All client contracts and relationships will automatically transfer to the new legal entity pursuant to a legal succession between Citibank Zrt. as the current service provider and Citibank Europe plc as general legal successor of Citibank Zrt., clients will not need to do anything. All existing client bank account and bank card numbers will remain unchanged.

The new entity will continue to have the same IBAN, SWIFT-code and bank account number after the merger, however it has received a new tax number and company registration number.

As required by European Union rules deposit and investment protection for customers will be governed by the Irish laws. Details of the enhanced Irish Deposit Protection Scheme can be accessed through the official website of the Irish Financial Services Regulatory Authority and all information relevant to customers will be posted on Citibank Hungary's local website.

Citibank Europe plc Hungarian Branch Office will remain under the supervision of the Hungarian Financial Supervisory Authority (PSZÁF), especially in the area of consumer protection, and the National Bank of Hungary, in accordance with the Hungarian legislation. In addition, the new branch will be primarily supervised by the Irish Financial Services Regulatory Authority, which supervises the whole Citibank Europe plc including its branches.

Further information about the branch conversion and the new legalentity are available on the local website at www.citibank.hu.