Question: What is "Excess SIPC" and how does it differ from the standard coverage?
Answer: Account protection applies when a SIPC member firm fails financially and is unable to meet it's financial obligations, but it does not protect against the rise and fall in the market value of investments, and does not cover all assets. The amount of the additional protection provided to clients by Citigroup Global Markets, Inc. through certain underwriters at Lloyd's of London ("Excess SIPC") is subject to an aggregate loss limit of $600 million for eligible securities and a per client loss limit of $1,900,000 for cash. This coverage is in excess of the SIPC limit of $500,000 of which $100,000 can be for cash.

Question: When will this change become effective?
Answer: At the transaction closing, currently expected to be October 31, 3005

Question: When does SIPC get involved?
Answer: If a member firm were to fail financially and the Trustee appointed in bankruptcy finds that the assets available for distribution to customers is less than what the customers are entitled to receive, the Trustee would call upon SIPC to allocate funds, up to $500,000 per customer account, to make up that difference.

Question: Specifically, what does SIPC cover and what is not covered?
Answer: SIPC covers securities on deposit up to a limit of $500,000, of which $100,000 can be for cash. Commodities, futures contracts, currencies and certain other investments contracts are not covered.

Question: How does SIPC coverage compare with FDIC insurance?
Answer: The Federal Deposit Insurance Corporation (FDIC) protects deposits up to $100,000 in most, but not all U.S. banks and savings associations in the event that the institution becomes insolvent. FDIC does not cover securities, mutual funds or similar types of investments.

FDIC Insurance: In the event that federal deposit insurance payments become necessary, payments of principal plus unpaid and accrued interest will be made. The client may be required to provide certain documentation to the FDIC and Smith Barney before insurance payments are made, for example, if the client holds deposits as trustee for the benefit of trust participants, the client may be required to furnish affidavits and provide indemnities regarding an insurance payment.

SIPC Coverage: SIPC is a non-profit membership corporation created by the Securities Investor Protection Act of 1970, funded primarily by its member securities brokerage firms registered with the U.S. Securities and Exchange Commission. SIPC provides protection to clients of securities brokerage firms like Citigroup Global Markets Inc. (Smith Barney) in the event such firms become insolvent. Unlike FDIC insurance, SIPC does not insure against the failure of the issuer of a security. SIPC protects each client's securities account at an insolvent brokerage firm. Money market funds are considered to be securities for SIPC purposes.

For more information on FDIC insurance, please refer to www.fdic.gov or 877-275-3342. For more information on SIPC insurance, please refer to www.sipc.org or call 202-371-8300.

Question: What are the differences in coverage between the existing Legg Mason excess SIPC program and the new excess SIPC coverage to be provided by Citigroup Global Markets?
Answer: The two programs are extremely similar in intended function. Both are designed to provide a supplemental level of protection against the financial failure of an SIPC member institution. This account protection applies when a SIPC member broker/dealer firm fails financially and is unable to meet it's financial obligations, and it does not protect against the rise and fall in the market value of investments, and does not cover all assets.

In both programs, the Excess SIPC coverage becomes effective only once the maximum limits of SIPC coverage are exceeded. SIPC provides total protection per client of up to $500,000 (including securities)with up to $100,000 in cash. For SIPC asset protection purposes, money market funds are considered securities and not cash.

The two programs have different underwriters. Existing Legg Mason coverage is provided by CAPCO, a captive insurance company owned by its member firms. Citigroup Global Markets employs certain insurance company underwriters of Lloyd's of London to provide their coverage. CAPCO provides "Total Net Equity" coverage, meaning the per client coverage for eligible securities and cash is limited only by the total resources of CAPCO and there is no limit to the coverage on a per client level. Citigroup Global Markets' coverage also has no individual client limit for eligible securities, but does have an aggregate excess loss limit of $600 million for eligible securities at the firm level and a per client loss limit of $1,900,000 for cash.