Citi Clarifies Office Consolidation Issues

March 19, 2009 -- New York – In response to numerous misleading media reports regarding the office consolidation at Citi's global headquarters at 399 Park Avenue, Citi issued the following points of clarification:

* The consolidation of our executive headquarters at 399 Park Avenue is part of an ongoing global effort to substantially reduce expenses.

* Over the last two quarters, reported premises and equipment expenses are down by $100 million, and Citi expects to realize significantly more savings in 2009.
* Globally, office density will be 120 usable sq. ft. per person by the end of 2009, down from 132 usable sq. ft. per person currently.
* The consolidation of the executive headquarters at 399 Park Avenue is part of the global cost savings initiative and will result in the reduction of space on the executive floors by 50%, going from two floors to one and subleasing the remaining space.
* This consolidation and subsequent costs are for all executive office space at 399 Park Avenue, not just the CEO’s office.
* Citi is doubling the overall occupancy rate on the remaining floor at 399 Park Avenue by creating smaller offices, increasing work station to office ratios, and by utilizing alternative work strategies.
o Occupancy on the remaining floor goes to 177 from 89 currently.
* The 399 Park Avenue office space consolidation, through densification and sublease, is estimated over the life of the lease to net $20 million in savings, an amount well in excess of the project costs. This estimate is based on conservative assumptions regarding the price and timing of the sublease.
* This consolidation is about cost savings and anything reported to the contrary is misleading.

Source: Citi