Associated Banc-Corp and Citibank USA Form Credit CardAlliance.

Business Editors

NEW YORK--(BUSINESS WIRE)--Feb. 24, 2000

Associated Banc-Corp (NASDAQ: ASBC) and Citibank USA, a member of Citigroup (NYSE: C) today announced they have entered into a long-term agency agreement which includes the sale of Associated's $130 million credit

card portfolio to Citibank. Under the agreement, the two companies will offer Associated-branded credit cards to Associated's approximately 300,000 cardholders. Citibank will service the accounts providing Associated cardholders with a host of new services and benefits including Internet account access and travel reward programs.

"We continuously evaluate our product lines to ensure we are providing optimum value for our customers and shareholders," Associated President and Chief Operating Officer Robert C. Gallagher said. "We chose to partner with Citibank, the nation's premier credit card issuer, because of its strength, skill and commitment to service and privacy. The alliance announced today allows us to maximize the value of our card business. It will bring many benefits to our customers, while shareholders will benefit as proceeds from the transaction become available for reinvestment," he said.

At the same time, this new alliance will enable Citibank to build on the reputation and customer relationships enjoyed by Associated throughout its markets in Wisconsin, Illinois and Minnesota.

"Together with similar, previously-announced credit card alliances, this relationship with Associated gives us a strong foothold in very desirable markets in the Mid-West and Mid-Atlantic states," said Thomas G. Anderson, President of Citibank USA. "We are pleased to add Associated to our select roster of alliance relationships and we look forward to serving their loyal customers and providing them with the highest standard of customer service," he said.

The transaction is expected to close early in the second quarter of 2000 and will be seamless for Associated cardholders. On closing, Associated expects to recognize a gain of approximately $12 million.

Associated Bank Visa check cards, business/corporate cards, merchant card services and HomePower(TM) home equity cards are unaffected by the arrangement with Citibank.

Citibank USA is the affinity credit card unit of Citibank, the largest issuer of MasterCard and Visa cards in the United States. Citibank is part of Citigroup, the most global financial services company which provides some 100 million consumers, corporations, governments and institutions in 100 countries with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage and asset management. The 1998 merger of Citicorp and Travelers Group brought together such brand names as Citibank, Travelers, Salomon Smith Barney, CitiFinancial (formerly Commercial Credit), and Primerica under Citigroup's trademark red umbrella. Additional information may be found at www.citigroup.com

Associated Banc-Corp, headquartered in Green Bay, Wis., is a diversified multibank holding company with total assets of $12.5 billion. Associated has more than 200 banking offices and 225 ATMs serving more than 150 communities in Wisconsin, Illinois, and Minnesota. The company offers a full range of traditional banking services and a variety of financially related products and services through other Associated affiliates. More information about Associated Banc-Corp is available at www.associatedbank.com.