Pacific Income Advisers Appoints Citigroup to be Service Provider for Separately Managed Accounts

Mandate Involves $2.5 Billion in Assets Under Management and 7,000 Retail Accounts

New York – January 24, 2006 – Global Transaction Services, a business unit of Citigroup Corporate and Investment Banking, today announced that it has been appointed by Pacific Income Advisers (PIA) to be the service provider for the investment advisory firm’s retail separately managed accounts (SMA) business.

Initially, this mandate involves 7,000 retail accounts with $2.5 billion assets under management.

“Until now, fixed income account management in the retail SMA space has been a highly manual process. Most vendors lack the ability to scale to the large volumes of SMA accounts and to integrate fixed income manager tools for portfolio decision support, trade order management, pricing and attribution,” says Tim Tarpening, Executive Vice President of Pacific Income Advisers. “When we decided to automate our SMA operations, we sought an operations service provider that had the experience and resources to deliver a solution customized to our specific needs and management style. For the first time, Citigroup is providing a level of automated processing in fixed income management previously unavailable in the SMA marketplace.”

” PIA — a leading manager of innovative fixed income products to the separately managed account marketplace – will be a terrific partner to demonstrate our leading edge fixed income capabilities,” says Andrew Clipper, Product Manager, Asset Manager Solutions, Citigroup Corporate and Investment Banking. “By our automating PIA’s back-office processes and seamlessly integrating industry leading fixed income manager support tools, the platform will enable PIA to rapidly and efficiently take advantage of the accelerating growth in SMA Fixed Income accounts.”

The technological core of Citigroup’s SMA capabilities is Citigroup Asset Manager Solutions for Separately Managed Accounts. This end-to-end operations servicing platform, which standardizes current and disparate processes across all aspects of the industry, allows investment advisors to manage all their accounts, regardless of style of sponsor, very efficiently. Its institutional-quality trading solutions solve burgeoning best-execution issues for both equities and fixed income. It provides real-time access to performance and portfolio data, enables investment advisors to deliver robust statement reporting to clients both in print and via the Web, while allowing them to enjoy considerable cost savings and the capability to enhance profitability and assets under management.

In recognition of its technological innovation, Citigroup Asset Manager Solutions for Separately Managed Accounts was honored as the 2005 “Back-Office Solution of the Year” by The Banker.

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About Pacific Income Advisers
Pacific Income Advisers (PIA) is an independent, employee-owned investment advisory firm founded in 1986 and located in Santa Monica, California. PIA manages over $4 billion in several traditional fixed income styles that span the complete yield curve. PIA is an investment advisor for a broad range of institutional clients that include Taft-Hartley, Endowment and Foundation, Corporate and Public Funds. Additionally, PIA is building a significant sub-advisory business managing client assets for several independent and broker-dealer sponsored wrap-fee programs. Additional information may be found at www.pacificincome.com

About Citigroup
Citigroup (NYSE: C), 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, insurance, securities brokerage, and asset management. Major brand names under Citigroup’s trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney, and Banamex. Additional information may be found at www.citigroup.com.

About Citigroup Corporate and Investment Banking
Our Corporate and Investment Banking group achieves the extraordinary for our clients around the world. No financial institution is more committed to understanding and advancing the goals of its clients - our diverse and talented staff in some 100 countries advises companies, governments, and institutional investors on the best way to realize their strategic objectives. We create solutions for and provide the broadest possible capital and market access to thousands of issuer and investor clients, and no institution better executes the increasingly complex payment and cash management solutions required in today's global economy. Core business lines under Citigroup Corporate and Investment Banking include Global Capital Markets, Global Banking and Global Transaction Services.