Citigroup Global Wealth Management Division and Pacific Alternative Asset Management Company Announce Joint Venture; Citigroup's High Net Worth Investors Gain Access to Institutional Alternative Asset Management Services

Business Wire, May 18, 2005

NEW YORK -- Citigroup Global Wealth Management (Smith Barney and The Citigroup Private Bank) and Pacific Alternative Asset Management Company, LLC, a leading independent fund of hedge funds investment firm, announce a joint venture entity (Global Hedge Strategies, LLC) to provide custom hedge fund of funds portfolio management services to ultra high net worth investors. The joint venture seeks to serve the substantial demand for alternative investments among affluent investors and formalizes and enhances a five year long portfolio advisory relationship between Pacific Alternative Asset Management Company and The Citigroup Private Bank.

According to Todd S. Thomson, CEO of Citigroup Global Wealth Management, "There is an ever-growing demand among our high net worth clients for sophisticated alternative investments. Increasingly, our clients are moving beyond basic funds of hedge funds to hedge fund portfolios tailored to their specific needs. This joint venture with Pacific Alternative Asset Management Company allows us to offer Citigroup Private Bank and Smith Barney clients access to some of the industry's sharpest minds and best tools for creating customized portfolios of hedge funds."

According to Jane Buchan, CEO of Pacific Alternative Asset Management Company, "We are delighted to further partner with Citigroup Global Wealth Management to offer our investment capabilities to a select group of ultra high net worth investors. The establishment of a fully and separately staffed entity in this venture allows us to focus on what we do best which is building custom portfolios for sophisticated investors. We see this as a partnership between two flagship brands where clients get the best of both partners."

Citigroup Global Wealth Management has more than 560 private bankers and 12,000 financial consultants overseeing more than $1.2 trillion in asset under management.

Pacific Alternative Asset Management Company has over $7 billion under management and a current client mix of large public and private pension plans, foundations, endowments, and financial institutions.

Global Wealth Management is a business of Citigroup Inc. and comprises The Citigroup Private Bank, Smith Barney Global Private Client Group, and Smith Barney Global Equity Research (Smith Barney is a division of Citigroup Global Markets Inc., Member SIPC). Citigroup and the Umbrella device are trademarks and service marks of Citicorp or its affiliates and are used and registered throughout the world. The Citigroup Private Bank, one of the largest private banking businesses in the world, provides personalized wealth management services for clients in more than 30 countries, including a full range of portfolio management and investment advisory services from Citigroup Asset Management, structured lending and banking services, as well as the expertise of Citigroup's Global Corporate and Investment Bank. Smith Barney offers a full suite of investment services, including asset allocation, private investments and lending services, hedge funds, cash and portfolio management, as well as retirement, education and estate planning. Smith Barney Global Equity Research covers companies representing 90 percent of the market capitalization of the major global indices. Additional information may be found at www.citigroup.com.

Citigroup (NYSE: C), 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, insurance, securities brokerage, and asset management. Major brand names under Citigroup's trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Travelers Life and Annuity. Additional information may be found at www.citigroup.com.

Pacific Alternative Asset Management Company, LLC is a research-oriented, institutional fund of hedge funds management firm based in Irvine, California. It constructs, monitors and manages diversified portfolios of hedge funds and provides investment services to institutional investors globally.

Pacific Alternative Asset Management Company, LLC was founded in 2000 and is headquartered in Irvine, California. In 2003, Pacific Alternative Asset Management Company established a subsidiary in London (Pacific Alternative Asset Management Company Europe, LLP). As at 1 May 2005, it had over $7 billion in assets under management globally. Pacific Alternative Asset Management Company has a global staff of over 50 and is owned by the firm's senior professionals.

Pacific Alternative Asset Management Company is registered with the SEC and the CFTC, and Pacific Alternative Asset Management Company Europe, LLP is registered with the FSA. Additional information can be found at www.paamco.com.