SWIFTNet™

Update: December 2004

Citigroup is pleased to announce that we are live on SWIFTNet™ FIN and are offering each of the new SWIFTNet facilities to our customers: FileAct, InterAct, Browse, and Closed User Groups.

The global implementation of SWIFTNet and the migration of FIN to SWIFTNet FIN continues the enhancement and integration of SWIFT's family of messaging services into Citigroup's own products and services. With strategic implementation of SWIFTNet's features, Citigroup will be able to provide IP based facilities including more interactive client access, file transfer messaging and secure browsing capabilities. In addition, SWIFTNet extends the use of the SWIFT network to the corporate community.

Citigroup, led by their predominant corporate SWIFT user, Global Transaction Services, is committed to migrating to SWIFTNet FIN and adopting the new SWIFTNet facilities best suited to all participating parties. All affected Citigroup business units and their supporting technology and operations groups will participate in the definition, design, development and migration to SWIFTNet FIN and the strategic deployment of the new SWIFTNet products and services. Most importantly, client solutions adopted in one location will be available in all locations. We know our clients want consistency and a common platform. SWIFT is an ideal way to meet that client requirement.

Citigroup SWIFTNet Global Project Team
Citigroup formed a Global Project Team staffed with experienced business, technology and operations professionals, all with SWIFT based experience, to manage the migration and the ancillary opportunities within SWIFTNet. Many of these people participated in the complex migration of the Securities business's systems and transactions for 15022. Others are currently involved in the migration from the 7775 MT100 to the 15022 MT103.

In meeting the SWIFT mandated migration deadline of December 2004, we have leveraged that experience, as well as our inherent product, service and operation acumen to determine and execute a strategy that maximizes the opportunities provided by FileAct, InterAct, Closed User Group and Browse, concepts. There are two distinct elements of SWIFTNet:

• SWIFT FIN to SWIFTNet FIN
• SWIFTNet Facilities

SWIFT FIN to SWIFTNet FIN
The first, and perhaps most critical for continuity of business, is the migration from the SWIFT FIN network, SWIFT's store-and-forward financial messaging service that users access over an X.25 connection, to SWIFTNet FIN, a secure Internet type network. All current users of the FIN network are required by SWIFT to migrate to SWIFTNet FIN no later than December 2004.

Unlike both the Securities MT 500 series migration to 15022 and the Cash migration of the MT100 to the MT103, there is no need to dovetail readiness to each individual client in the FIN migration. This is primarily a technological migration.

SWIFTNet Facilities
Based on the profound difference in the new technology, SWIFT is now able to offer valuable new services through SWIFTNet including FileAct, InterAct, Closed User Group and Browse.

Testing and Implementation
FIN
Citigroup is already live with a number of SWIFTNet facilities in terms of connectivity to Market Infrastructures, including CLS®, the Bank of England and BIREL. Others are being implemented as necessitated by the dictates of each local market. We have also purchased a Closed User Group and have 7 active customers.