Citigroup Completes Sale of 10.1% Equity Interest in Akbank T.A.S

NEW YORK--([ BUSINESS WIRE ])--Citigroup Inc. (NYSE: C) today announced it has sold 404 million common shares in Akbank T.A.S. (Akbank) through an equity offering representing 10.1 percent of the equity interest in the company for TRY5.24 per share. Total proceeds from the transaction are expected to be approximately USD1.15 billion at the current exchange rate, resulting in an after-tax loss of approximately USD243 million in the second quarter. The transaction is estimated to generate approximately 23 basis points of Tier 1 Common capital under Basel III.

On April 30, 2012, Citi entered into an agreement with H.. Sabanc Holding A.. (Sabanc Holding) and Akbank under which Citi committed to hold the balance of its strategic stake in Akbank, approximately 9.9% of Akbank common shares, for a three year lock-up period following such sale, subject to limited exceptions, and Sabanc Holding agreed to waive its right of first offer in relation to the sale of Citias 10.1 percent stake.

In addition, Sabanc Holding and Citigroup have expressed their mutual intention to continue their ongoing partnership and strategic cooperation. Accordingly, one non-executive member of the board of directors of each of Akbank and Citibank A.S., Citias local franchise in Turkey, will continue to be elected from among candidates mutually agreed and nominated by Sabanc Holding and Citigroup, as an indication of the partiesa commitment to their continued strategic cooperation. Citi maintains a very strong and productive relationship with Akbank through a number of products and services and is very pleased with its investment and business partnership.

Citi remains committed to Turkey and to Citibank A.S. Citi has been in Turkey for 36 years serving the financial needs of corporate, commercial and consumer clients through a full range of products and services. Citibank A.S. is recognized as the market leader in securities services having more than 50 percent custody market share of equities held by foreign investors and executing more than 50 percent of the securities clearing and settlement transactions in Turkey. Citibank A.S. accounts for 10 percent of the total value of payments through the local currency payment system.

Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.

Certain statements in this release, including the estimated financial and capital impacts to Citi as a result of its sale of 10.1 percent of Akbank shares, are aforward-looking statementsa within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results and capital and other financial condition may differ materially from those included in these statements due to a variety of factors, including but not limited to the completion of the final analysis of the financial, accounting and capital impact on Citi as a result of the sale. More information about these factors and other factors that may affect Citigroup's future results is contained in Citigroup's filings with the U.S. Securities and Exchange Commission, including without limitation the aRisk Factorsa section of Citigroupas 2011 Annual Report on Form 10-K. Precautionary statements included in such filings should be read in conjunction with this document.

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Citigroup Completes Sale of 10.1% Equity Interest in Akbank T.A.S