Press Releases

Citigroup Global Corporate And Investment Banking Group To Acquire Lava Trading, Leading Independent Provider Of High-Performance Trading Solutions

Joins Lava's Sophisticated and Robust Electronic Trading Capabilities with Product and Geographic Diversity of Global Financial Services Leader

Lava to Operate as Wholly-Owned, Independent Subsidiary of Citigroup

July 2, 2004

New York - Lava Trading Inc., the largest independent provider of high-performance trading solutions to the financial services industry, will become a wholly-owned, independent subsidiary of Citigroup Inc. (NYSE: C) following the closing of the transaction, the companies announced today. Terms of the transaction were not disclosed. The transaction is expected to close in the third quarter of 2004 and is subject to customary closing conditions.

Lava provides Citigroup with a state-of-the-art product offering in the rapidly expanding channel of electronic execution and in sell-side order management systems. Lava's patented technology consolidates market data from electronic communication networks (ECNs) and exchanges to help its clients realize best execution via a low-cost, high-speed, multi-broker electronic trading platform to clients. Lava's clients include most of the top 20 U.S. investment banks, market makers, hedge funds and institutional investors.

"Today, equity execution requires leading edge technology, and by joining with Lava, we are poised to offer our institutional clients the benefits of the most sophisticated and robust electronic trading system in the market with technology that complements and enhances our existing platforms and product suites," said James Forese, Managing Director and Head of Citigroup Global Equities. "With this move, we will catapult to a leading market position in electronic execution which currently accounts for a significant and growing portion of total trading volume.

"The combination of Lava's trading solutions and Citigroup's product diversity and global breadth is unmatched, enabling us to offer an expanding array of electronic execution capabilities across multiple product lines and geographies. We look forward to working with Lava's co-founders, Richard Korhammer and Kamran Rafieyan, and the entire Lava team to maximize the potential of this transaction," Mr. Forese said.

Richard Korhammer will remain Chief Executive Officer of Lava, reporting to Mr. Forese. In order to maintain strict confidentiality of all client trading data, Lava will be operated independently of Citigroup from Lava's Morton Street headquarters in New York City with strict firewalls.

"As we continue our efforts to advance technology leadership in the financial services industry as it relates to speed, intelligence, and reliability, we could not have a better partner than Citigroup with its global footprint and unmatched capabilities," Mr. Korhammer said. "With the resources of Citigroup behind us, our opportunities to move into new product areas and expand our services to meet global demand for electronic trading and execution capabilities are unlimited."

About Citigroup

Our Global Corporate & Investment Banking Group is a leading force in the world's capital markets and consists of three business lines: Global Banking, Capital Markets, and Transaction Services. We provide more industry-leading solutions to more clients in more countries than any of our competitors. No other company serving the capital markets offers Citigroup's geographic reach, local presence, product scope, expertise, and high standards.

Citigroup (NYSE: C), the preeminent global financial services company which has 200 million customer accounts and does business in more than 100 countries, provides 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, Banamex, and Travelers Life and Annuity. Additional information may be found at

Certain statements in this document are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in Citigroup's filings with the Securities and Exchange Commission.