Citigroup Expands Presence in Central America through Acquisition

Citigroup announced today that it has reached a definitive agreement to acquire Grupo Financiero Uno (“GFU”), the largest credit card issuer in Central America, and its affiliates. The acquisition of GFU, with $2.1 billion in assets, will significantly expand the presence of Citigroup’s Latin America consumer franchise, enhancing its credit card business in the region, and establishing a strong platform for regional growth in consumer finance and retail banking. The financial terms of the transaction are not being disclosed.

GFU is privately held and has more than one million retail clients representing 1.1 million credit card accounts, $1.2 billion in credit card receivables and $1.3 billion in deposits in Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Panama as of September 30, 2006. This financial services provider operates a distribution network of 75 branches and more than one hundred mini branches and points of sale. GFU will continue to operate under its established brands during the integration.

The transaction, which is subject to regulatory approvals in the United States and each of the five countries, is anticipated to close in the first quarter of 2007 and is expected to be accretive to Citigroup’s earnings in the first year. Citigroup Corporate and Investment Banking was the sole advisor to Citigroup on this transaction.