CitiStreet Partners with Citigroup's Cash Management Business To Offer Consumer Directed Healthcare Product

New York– April 27, 2006 — Global Transaction Services, a business unit of Citigroup Corporate and Investment Banking and CitiStreet, announce that they are partnering in the marketing and distribution of the Citibank HSA. Citistreet is a joint venture between Citigroup and State Street Corp. that is one of the largest benefit delivery firms in the country.

Health Savings Accounts (HSAs) are being hailed as the next generation of consumer-directed health care. The "triple tax-advantaged" accounts are established specifically for qualified medical expenses and sold in conjunction with a High Deductible Health Plan (HDHP). HSAs also act as an additional retirement benefit because the unused funds can roll over from year to year, much like a 401(k).

"We believe that the combination of HDHPs and HSAs are going to be the vehicle of choice going forward in the consumer directed health care market," said Paul Galant, Citigroup's Global Head of Cash Management. "Our solution provides great value by allowing consumers an opportunity to take control of their healthcare expenses and we look forward to working with CitiStreet, a leader in the employee benefits industry."

"Having a trusted name like Citigroup behind the product has great significance in the marketplace," said Jim Murphy, CitiStreet president and head of its Total Benefits Outsourcing division. "This offering complements the full spectrum of health and welfare administration services we provide today and answers our client requests to continually expand the benefit administration services we offer."

CitiStreet will market this HSA program to its clients. CitiStreet administers benefit plans for more than 10 million employees and former employees, including health and welfare plans that cover more than 1 million people.

Citibank HSA has developed a turnkey marketing program that will make it easy for corporations to educate their employees about the benefits of the product and enroll them in it. "The winners in the HSA world will be the institutions that are leaders in the financial services marketplace, like Citigroup. Corporations are relying on high enrollment in this product to reap the maximum financial benefits for their businesses and their employees. Citigroup's brand name and reputation will help drive enrollment among employees," said Paul Galant.

To qualify for an HSA, individuals must have a high-deductible health plan (HDHP), a form of health insurance that includes a deductible of at least $1,050 (single) or $2,100 (family). HDHP premiums are generally 15 percent to 45 percent lower than the cost of traditional plan premiums and HDHP premiums are growing at a much slower rate than the premiums of traditional plans.

Employers can set up HSAs like 401(k)s, giving employees the option to deduct funds from payroll pre-tax and route it into a savings account. The funds can then be used by the employee to pay for approved medical expenses or to offset a health insurance deductible. Since HSA balances are not forfeited at year-end, an account owner may continue to fund the HSA year after year. The unused funds will continue to accumulate and earn interest in a savings account.


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

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.

About CitiStreet:
CitiStreet, one of the largest global benefits delivery firms in the United States, is headquartered in Quincy, Mass. CitiStreet has 3,000 employees at offices in Somerset, N.J., Jacksonville, Fla., Lewiston, Maine, Boston and field offices around the nation. It also has a division, CitiStreet Australia, with offices in Sydney, Brisbane and Melbourne. CitiStreet serves more than 10 million participants and administers approximately $200 billion in assets in the United States for defined contribution, defined benefit and health and welfare plans of corporate, government, health care, Taft-Hartley and not-for-profit organizations. It also serves more than 1 million participants and administers about $15 billion in assets outside the United States. CitiStreet is a 50/50 joint venture between State Street Corp. (NYSE:STT) and Citigroup (NYSE:C). For more CitiStreet information, visit the Web site at