9.07.2001 ET

(CSRwire) I want to keep you updated on the progress we have made to enhance the effectiveness of Citigroup’s Supplier Diversity Program (SDP).

While the program had successfully developed a strong cadre of highly professional minority and women suppliers who provide us with world-class goods and services, a number of areas within the program needed strengthening. The focused efforts to improve these areas, along with the company’s increased focus on SDP overall, reflect our long-standing commitment to diversity and fair and equal opportunity.

First of all, we have expanded the program across Citigroup to include new participants - Primerica and CitiFinancial - as well as new functions such as Marketing, Advertising, Special Events, Dining, Legal and Accounting Firms, and Facilities Services. With this expansion, every Citigroup business is contributing to our SDP efforts.

We are also improving our ability to measure progress by developing more accurate reporting procedures in each business, creating standardized forms that are electronically distributed and building a new supplier database.

These improvements should help us to continue the strong momentum SDP has generated. In the last two years, the program has grown rapidly, as reported spending has gone up from approximately $30 million in the first half of 1999 to approximately $200 million in the first half of 2001. Part of this difference is due to better data capture, but our increased focus has unquestionably produced dramatic improvement.

We have much more work to do, but we’re very proud of the track record SDP has built, a record that garnered for Citigroup a number of awards in 2000 from the National Minority Business Council. We anticipate that SDP will continue to generate new business opportunities for minority and women suppliers as we continue to concentrate on doing even better in the years to come.

To learn more about SDP, please take a look at our newly-created web site at http://www.citigroup.com/citigroup/corporate/supplier_diversity/.