Citigroup Reports ADR Activity For First Half of 2003

ADR Trading Volume Up While Trading Value and Capital Raisings Decline U.S. Investor Appetite for Non-U.S. Equities Continues to Grow

25 June 2003, New York -- Citigroup today reported that ADR trading volume increased while trading value and capital raisings decreased in the first half of 2003, compared to the same period last year.

ADR trading volume during the first half of 2003 is projected to be 14.3 billion shares (based on April 2003 YTD data), up 4.6% from the first half of 2002. By contrast, U.S. market volume traded (net of ADRs) declined over last year by 11.1%, from 248 billion to 220 billion shares according to Bloomberg.

ADR trading value for the first six months of the year is projected to be $255 billion, down 13% from last year's mid-year level of $294 billion. According to the World Federation of Exchanges, U.S. market value of trading (net of ADRs) declined year over year by 25%, nearly twice as much as ADR trading value, from $6.5 trillion to $4.8 trillion.

Capital raised in ADR form by non-U.S. companies was $421 million through June 13th, compared to $2.9 billion through the same period in 2002. Positive signs of a market recovery are emerging in that 78% of the $421 million in capital raised occurred in the first six trading days of June (Advanced Semiconductor Engineering Co. [ASE Corp], Taiwan, $87 million, June 4th, and Daewoo Shipbuilding and Marine Engineering Co., Ltd., Korea, $241 million, June 9th).

"Overall, the ADR market has been negatively impacted during this period of market uncertainty, but much less so than the U.S. market when comparing trading value," said Sanjeev Nanavati, Managing Director of Citibank Depositary Receipt Services. "Momentum for ADRs has shown signs of improvement in the last four to six weeks, and it looks like a trend that's going to last."

U.S. Investor Appetite for Non-U.S Equities Grows Steadily
From its peak of $2,026 billion in 1999, the level of U.S. investment in non-US equities has declined by $807 billion to $1,219 billion as of 1Q2003. During this time, however, net capital inflows of $250 billion have offset a $1,057 billion decline in asset values, showing that investor sentiment has remained positive during a global downturn.

U.S. Investment in Non-U.S. Equities (US$ Billions)
1999 - 1Q2003

Year/Quarter	U.S. Investment in Non-U.S. Equities	Change due to Capital Flows	Change due to Asset Values	Net Change
1999	2,026	-	-	-
2000	1,832	104	(298)	(194)
2001	1,565	107	(374)	(267)
2002	1,305	19	(279)	(260)
1Q2003	1,219	20	(106)	(86)
Total	-	250	(1,057)	(807)

Inflows to International Mutual Funds Outpace U.S. Equity Funds
Net new cash inflows to (purchases of) international mutual funds were $5.1 billion in 2002, while U.S. equity funds had net outflows (sales) of $24.3 billion. Twenty-six percent of 2002 net inflows to non-U.S. equities came from retail investors through international mutual funds. For 1Q2003, the pattern continued, with net new cash inflows to international mutual funds of $1.2 billion, compared to net outflows of $10.8 billion from U.S. equity funds. In April 2003, the beginning of market recovery was suggested, with net new cash inflows to international mutual funds of $3.3 billion, compared to net inflows of $12.5 billion to U.S. equity funds. International mutual funds accounted for 21% of total equity mutual fund inflows during April.

In summary, April 2003 year-to-date net inflows to international mutual funds totalled $4.6 billion, nearly three times larger than the net inflows to U.S. equity funds of $1.7 billion.

Fund Type	FY2002	1Q2003	April 2003	April 2003 YTD
Emerging Markets	615	(211)	286	75
Developed Markets	5,564	1,825	2,930	4,755
Regional Equity (1)	(1,124)	(393)	115	(279)
Total International Funds (2)	5,055	1,221	3,331	4,551
Total U.S. Equity Funds (3)	(24,345)	(10,810)	12,521	1,711

For additional information about ADR programs visit citibank.com/adr

Media Contacts:

Kevin Heine	New York	212-657-9634
Robert White	London	44-207-500-5196
Shirley Lam	Hong Kong	852-2868-8986

Top Ten ADRs by Trading Volume in 1st Half 2003 (Projected)

Issuer	Country	Exchange	Ticker	Volume (Millions)
Nokia Corporation	Finland	NYSE	NOK	1,305
Taiwan Semiconductor Mfg. Co. Ltd. (TSMC)	Taiwan	NYSE	TSM	684
LM Ericsson Telephone Co.	Sweden	NASDAQ	ERICY	489
Elan Corp. plc	Ireland	NYSE	ELN	441
BP plc	U.K.	NYSE	BP	436
Vodafone Group plc	U.K.	NYSE	VOD	414
United Microeletronics Corp. (UMC)	Taiwan	NYSE	UMC	393
Royal Dutch Petroleum Company N.V.	Netherlands	NYSE	RD	376
Durban Roodepoort Deep Ltd.	South Africa	NASDAQ	DROOY	320
Gold Fields	South Africa	NYSE	GFI	311

Issuer	Country	Exchange	Ticker	Value (US$ Millions)
Nokia Corporation	Finland	NYSE	NOK	19,212
BP plc	U.K.	NYSE	BP	16,866
HSBC Holdings plc	U.K.	NYSE	HBC	15,631
Royal Dutch Petroleum Company N.V.	Netherlands	NYSE	RD	15,476
Teva Pharmaceutical Industries Ltd.	Israel	NASDAQ	TEVA	12,397
Vodafone Group plc	U.K.	NYSE	VOD	7,770
SAP Aktiengesellschaft	Germany	NYSE	SAP	6,279
Telefonos de Mexico S.A. de C.V.	Mexico	NYSE	TMX	6,217
Taiwan Semiconductor Mfg. Co. Ltd. (TSMC)	Taiwan	NYSE	TSM	5,165
Total Fina Elf S.A.	France	NYSE	TOT	4,981

Issuer	Country	Exchange	Date	Value (US$ Millions)
Daewoo Shipbuilding & Marine Engineering Co. Ltd.	Korea	PORTAL	6/9/03	241
Advanced Semiconductor Engineering, Inc. (ASE)	Taiwan	NYSE	6/4/03	87
Telkom SA Ltd.	South Africa	NYSE	3/3/03	42
Kumgang Korea Chemical	Korea	PORTAL	4/22/03	28
Mitsubishi Tokyo Financial Group, Inc.	Japan	NYSE	4/2/03	23
Total				421

ADRs Traded (Millions)	1st Half 2002	1st Half 2003E	% Change
Europe/Africa	9,093	9,723	6.9%
Latin America	2,079	2,003	-3.7%
Asia/Pacific	2,476	2,552	3.1%
Total World	13,649	14,277	4.6%

ADRs US$ Value of Trading (US$ Millions)	1st Half 2002	1st Half 2003E	% Change
Europe/Africa	208,493	192,012	-7.9%
Latin America	41,013	30,020	-26.8%
Asia/Pacific	44,039	33,022	-25.0%
Total World	293,545	255,055	-13.1%

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