Citibank Mortgage Completes Acquisition of Source OneMortgage Services.

ST. LOUIS--(BUSINESS WIRE)--May 3, 1999--

Purchase Vaults Citigroup Unit into Top Tier of Mortgage Lenders

Citibank Mortgage, the St. Louis-based mortgage banking business of Citigroup, announced today that it has completed its previously announced acquisition of all of the assets

"The combination of Citibank Mortgage and Source One establishes a strong new player in the top tier of lenders," said David Lowman, Citibank Mortgage's president and chief operating officer. "Together, we offer a comprehensive spectrum of products and services that fit the individual needs of homeowners and prospective homeowners. In addition, our strong financial base provides us with the resources necessary to build this business for the future."

In 1998, Citibank Mortgage and Source One originated mortgage loans totaling more than $27 billion, and serviced or sub-serviced a $70 billion portfolio with nearly 900,000 accounts as of December 31, 1998. Source One has an established presence and expertise with low- to moderate-income borrowers, which Citigroup views as an important customer segment. With this acquisition Citigroup will broaden its product line significantly, underscore its commitment to those communities where it does business, and dramatically expand its retail presence via Source One's existing network of approximately 160 sales offices, 300 brokers and 200 correspondents.

"Both Citibank Mortgage and Source One have strong retail, correspondent and broker origination channels, and excellent experience with conventional loans," says Mr. Lowman. "Citibank Mortgage also brings an expertise in originating Jumbo loans and portfolio products as well as alternative retail channels, including corporate relocation and direct to consumer sales. Source One, on the other hand, has been one of the nation's leading FHA/VA lenders. This capability will allow Citibank Mortgage to better serve low to moderate income and first-time homeowners. The two operations complement one another extremely well with very little overlap."

Source One is based in Farmington Hills, Mich., and operates a nationwide network of retail lending offices. The company also has a sub-prime lending unit based in Poughkeepsie, N.Y. and a Sacramento, Calif.-based subsidiary, Central Pacific Mortgage.

Citibank Mortgage is part of Citigroup, the world's most global financial services organization. Citigroup's consumer businesses cover a broad range of financial services in 57 countries - retail and private banking, credit and charge cards, mortgage lending, consumer lending, personal financial planning, personal insurance and investment brokerage and counseling. These services are marketed through Citibank, Commercial Credit, Primerica, Travelers Life & Annuity and Travelers Property Casualty. Together, these consumer businesses earned $2.8 billion in 1998, representing 58 percent of Citigroup's core business income.