New York - February 26, 2008 -- Citi (NYSE: C) and Legg Mason, Inc. (NYSE:LM) today announced a definitive agreement in which Citi Global Wealth Management (GWM) would acquire the overlay and implementation business of Legg Mason Private Portfolio Group (LMPPG), which includes its managed account trading and technology platform. Citi is the industry's top sponsor of Separately Managed Accounts (SMA) and this transaction makes GWM a leading implementation and overlay provider. Roger Paradiso, President and Chief Investment Officer, and Michael Scotto, Chief Investment Strategist, and their team will join Citi in the transaction. Terms of the transaction were not disclosed.

As clients increasingly invest in Unified Managed Accounts (UMA) and other fee-based multiasset class programs, this transaction represents an important strategic capability for GWM. The technology and talent will improve operating efficiencies and increase customization of GWM client portfolios. This transaction brings "overlay" capability in-house at Citi allowing portfolio construction utilizing SMAs, mutual funds and ETFs in a single account structure. In undertaking this transaction, Legg Mason continues its focus on providing asset management services in an open architecture environment. Over the past year, Legg Mason has increased its number of managers in Managed Account structures.

Legg Mason will continue to serve as a sub advisor in Smith Barney's Fiduciary Services program and in the existing Multi-Discipline Account Products (MDAs) it manages today, consistent with current arrangements. As future programs are built, Legg Mason investment managers may participate in Smith Barney's fee-based programs in SMA or mutual fund formats.

Commenting on the transaction for Legg Mason, Mark R. Fetting, President and CEO of Legg Mason, said "This is truly a win-win. At Legg Mason, our goal is always to be among the best in delivering long term investment performance and in providing excellent service to our clients. We believe focusing on investment management services while selling the overlay technology back to Smith Barney, allows us to continue to service Smith Barney and their clients in the most efficient way. As important, we can introduce more flexible solutions for all our distribution partners in this very dynamic SMA market place. As the largest provider of asset management services to Separately Managed Accounts in the industry¹, Legg Mason is committed to remaining a leader in this segment. I want to thank Roger Paradiso and his team and look forward to working with them."

About Citi

Citi, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing 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, and wealth management. Citi's major brand names include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Nikko. Additional information may be found at www.citigroup.com or www.citi.com.

Certain statements in this document are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in Citigroup's filings with the Securities and Exchange Commission.

About Legg Mason

Legg Mason is a global asset management firm, with approximately $998 billion in assets under management as of December 31, 2007. The company provides active asset management in many major investment centers throughout the world. Legg Mason is headquartered in Baltimore, Maryland, and its common stock is listed on the New York Stock Exchange (symbol: LM).


¹ Source: Cerulli, Fourth Quarter 2007 Managed Account Summary.

For further information:

For Citi:
Alex Samuelson
(212) 783-2781

For Legg Mason:
Mary Athridge
Legg Mason
(212) 805-6035