Citigroup and Sears, Roebuck and Co. entered into an agreement on July 15 that would allow Citigroup to acquire Sears' $29 billion portfolio of private label and bankcard credit card receivables for a 10% premium or approximately $3 billion at closing.

The acquisition will also include Sears' Financial Products business and credit card facilities with approximately 8,300 employees (5,800 full-time employees). In addition, the companies signed a multi-year marketing and servicing agreement across a range of each company's businesses, products and services. The acquisition will provide sustained value and growth opportunities for both Citigroup and Sears.

Sears' credit card business includes 59 million total accounts, of which 25 million are active. This portfolio represents the 8th largest in the United States and includes the largest remaining in-house private label portfolio.

Both companies said that there will be no immediate changes to the Sears card programs or operations. Customers will be provided with uninterrupted service and should continue to use their cards in the same manner they do today.

Sears, Roebuck and Co. is a broadline retailer with significant service and credit businesses. In 2002, the company's revenue was $41.4 billion. The company offers its wide range of apparel, home and automotive products and services to families in the U.S. through sears stores nationwide, including approximately 870 full-line stores. Sears also offers a variety of merchandise and services through its Web sites, www.sears.com, www.thegreatindoors.com and www.landsend.com, and a variety of specialty catalogs.

Citigroup, the preeminent global financial services company with some 200 million customer accounts in more than 100 countries, provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage, and asset management. Major brand names under Citgroup's trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Travelers Life and Annuity. Additional information may be found at www.citigroup.com.