Telocity and Citi f/i Sign Affinity Marketing Agreement; Online Virtual Bank from Citibank and Citicorp Investment Services to Market Telocity Broadband Services to Citi f/i Customers

Business Wire, May 9, 2000

Business Editors/High-Tech Writers

CUPERTINO, Calif.--(BUSINESS WIRE)--May 9, 2000

Telocity, Inc., (Nasdaq:TLCT), a nationwide provider of broadband services to the residential market, and Citi f/i, the online virtual bank from Citibank and Citicorp Investment Services, announced today an affinity marketing agreement whereby Citi f/i will offer broadband services from Telocity to current and new Citi f/i customers. The affinity program -- the first of its kind for Telocity -- will be marketed by Citi f/i through traditional and online means, including direct mail and Internet banner advertising.

"Our partnership with Citi f/i reflects a shared philosophy to offer our customers innovative, differentiable services," said Regina Wiedemann, Sr. VP of Business Development for Telocity. "We are excited about the opportunity to provide the technology that will enable Citi f/i customers to access their financial relationships via our ultra-fast and secure service."

Under the terms of the agreement, current and new Citi f/i customers will be offered up to three months of Telocity service at no charge -- subsidized by both Telocity and Citi f/i. Upon expiration of the trial period, Citi f/i customers will have the opportunity to continue their Telocity service at the base rate of $49.95 per month. Free activation will be offered to both current and new Citi f/i customers.

"Telocity is a natural fit for our customers who have embraced the Internet to enhance and manage their lives," said Jerri DeVard, Citi f/i's VP, Customer Acquisition and New Business Development. "We believe our customers will benefit from Telocity's always-on, high-speed service."

Through Telocity, Citi f/i customers will be able to surf, shop and communicate over the Internet at speeds up to 50 times faster than with a traditional dial-up Internet service provider (ISP). Telocity's end-to-end service comes bundled with its self-installable Residential Gateway, high-speed DSL access, and multimedia-rich services, content, and communications customized for high-speed connections. Telocity subscribers begin their broadband experience through the co-branded Telocity / NBC Internet (Nasdaq:NBCI) user-interface. Telocity's strategic partnership with NBC Internet and its subsidiaries XOOM.com and Snap.com, provides for the joint development and design of future co-branded services and is intended to bring subscribers the best media, entertainment and electronic commerce services and content on the Web.

Citi f/i is a full-service, virtual bank that allows customers to perform daily banking and investing activities over the Internet or telephone. Customers have the convenience of 24-hour banking, featuring state-of-the-art security and around-the-clock customer service. Citi f/i customers can transfer funds, pay bills, place stock orders and customize financial reports. In addition, they receive low monthly fees and low minimum balance requirements to avoid fees, higher interest rates on CDs and insured money market accounts, free online bill payment and ATM reimbursement for cash withdrawals at other banks. Additional information may be found at www.citifi.com.

Citi f/i expects to begin marketing the Telocity service by the latter half of 2000 in select metropolitan areas throughout the U.S. where Telocity service will be available.

About Telocity

Telocity is a leading provider of residential broadband services. Telocity improves today's dial-up, or narrowband, experience through faster and reliable services that enhance Internet surfing, shopping, and communications. Telocity intends to expand its broadband services to packaged value-added services that may include secure telecommuting, home monitoring and automation, voice bundling, and entertainment and gaming services. Telocity currently provides high-speed broadband services through digital subscriber line (DSL) technology. As Telocity expands its services nationwide, the company intends to choose the most reliable, flexible and cost-effective broadband access technologies (including DSL, cable, and wireless) available in each local market. Telocity's current broadband footprint covers over 115 major U.S. Metropolitan Statistical Areas (MSAs) across the United States. For more information, contact Telocity at phone 408/863-6600; fax 408/777-1451; www.telocity.net, or mail at 10355 N. DeAnza Blvd.; Cupertino, CA 95014.

About Citibank

Citibank is part of Citigroup (NYSE:C), the most global financial services company, which provides some 100 million consumers, corporations, governments and institutions in 100 countries with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage and asset management. The 1998 merger of Citicorp and Travelers Group brought together such brand names as Citibank, Travelers, Salomon Smith Barney, CitiFinancial, and Primerica under Citigroup's trademark red umbrella. Additional information may be found at www.citigroup.com.