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					                                                                                                      Internal Ericsson Wide
                                                                                                      REPORT                              1 (6)
             Uppgjord (även faktaansvarig om annan) - Prepared (also subject responsible if other)    Nr - No.

             KI/ERA/LG/S Ragnar Poijes +46 8 757 17 44                                                LG/S-98:0085
             Dokansv/Godk - Doc respons/Approved                                    Kontr - Checked   Datum - Date   Rev       File

             LG/S Per Sjödén (                       )                                                1998-03-09      A


                                                            CITIBANK AND CITYCORP, A QUICK STUDY



                                                            Attachment.

                                                            1. Copy from a Financial DataBase of an article in the Economist, volume
                                                               343, 1998

                                                            2. North America (N.A.) Directors, Country Corp. Officers and Corp. State
                                                               Officers. List of.



                                    1                       THE REQUEST

                                                            LG/SB is requested to give a short analysis of Citicorp and Citibank, USA.
                                                            and its worldwide activites

                                                            A pressrelease is saying Mr Paul J Collins, vice president of Citicorp and
                                                            Citibank NA, will take a chair in the board of Nokia.

                                                            ERA is interested in working with an international bank conerning mobile
                                                            banking systems.

                                                            It could be interpreted as Nokia has plans on relations with Citicorp for a
                                                            similar purpose.



                                    2                       SUMMARY AND COMMENTS

                                                            It seems Citicorp and Citibank have a clear vision that the competition in
                                                            banking is increasing rapidly and to meet that, the business has to be more
                                                            cost effective and by that using more and modern technology. At the same
                                                            time the service portfolio towards existing and new customers has to be
                                                            extended and with better quality.

                                                            Chase Manhattan Bank, one of Citibank’s hardest competitiors and many
                                                            other banks and finance institutes are focusing on Electronic Banking.
                                                            Citibank is collaborating with CMH in a pilot project with Smart Cards in New
                                                            York.

                                                            To develop the business and the organisation Citicorp has enrolled several
                                                            new competenses to the Board of Directors. Citibank is focusing very much
                                                            on Consumer Business and retail banking.

                                                            Citibank is the largest Bank Card company worldwide with approx. 50 million
                                                            customers. The Board has expressed the goal is to have totally one billion
                                                            customers in year 2010. There is a focus on Asia and emerging markets.
EN/FAD 109
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                                                                                                      Internal Ericsson Wide
                                                                                                      REPORT                          2 (6)
             Uppgjord (även faktaansvarig om annan) - Prepared (also subject responsible if other)    Nr - No.

             KI/ERA/LG/S Ragnar Poijes +46 8 757 17 44                                                LG/S-98:0085
             Dokansv/Godk - Doc respons/Approved                                    Kontr - Checked   Datum - Date   Rev       File

             LG/S Per Sjödén (                       )                                                1998-03-09      A

                                                            Citicorp has approx 90 000 employees end 1997. The plan is to lower it by
                                                            9000 but increase with 1500 persons in new technologies within 3 years.
                                                            Totally a decrease of 7500 persons. It’s in percent more than several of
                                                            Citibank’s bank competitors.

                                                            Citicorp has bought stakes in and/or made multi years agreement with high
                                                            tech companies (sw and hw) within the electronic banking sector. Citibank
                                                            has started trials with Telephone Banking and Smart Card cash handling.

                                                            In Europe, Citibank is involved in electronic banking projects via its branch
                                                            office in Frankfurt, Germany. The focus is on applications based on Internet
                                                            infrastructure and technology. Some of the applications could be for mobile
                                                            telephony and computer users.

                                                            The Citibank branch office in Stockholm is together with Citibank technical
                                                            and system responsible department in Frankfurt developing the intra
                                                            communication infrastructure in the Stockholm office. According to account
                                                            manager Clas Rönnlöv, there is an interest in devoloping wireless and mobile
                                                            bank solutions for entire Citicorp. This could mean Citicorp is viewing an
                                                            advantage in having a footstep in the Mobile Telephony Companies and
                                                            Operators to secure future applications.

                                                            It’s obvious Citibank has an investment plan to secure growth and profitability
                                                            in the future by having a larger customer base and using new telecom and
                                                            banking electronics to reach, communicate, service and keep the customers
                                                            as well as stimulate the customers use of economic and financial instruments
                                                            in the services offered. E.g. a growing part of the Citibank banking in USA is
                                                            to advice and handle securities of their customers. Internet is the
                                                            communication channel.



                                    3                       PRESENTATION

                                                            The Parent Company Citicorp is the second largest Bank Holding Co in North
                                                            America (incl. Canada) with assets of almost 304 billion USD. It’s the largest
                                                            Bank Card company worldwide with banking services in more than 98
                                                            countries. Number of customers is approx. 90 millions end 1997. The goal is
                                                            to have one billion customers in 2010.

                                                            There are two franchises: Global Corporate Bank and Consumer
                                                            Business.The consumer sector is dominated by business with credit cards.
                                                            The credit card handling is to a great extent relying on computer technology
                                                            and data transmission (telecom).

                                                            Citicorp and Citibank employ almost 90 000 persons. Approx. 51 000 are
                                                            outside USA.

                                                            The net profit in 1997 was 4.1 billion USD, an increase of 9 %.
EN/FAD 109
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             D:\Docstoc\Working\pdf\62246f2a-0325-4f23-85d8-b52fb4ca6a54.doc
                                                                                                      Internal Ericsson Wide
                                                                                                      REPORT                          3 (6)
             Uppgjord (även faktaansvarig om annan) - Prepared (also subject responsible if other)    Nr - No.

             KI/ERA/LG/S Ragnar Poijes +46 8 757 17 44                                                LG/S-98:0085
             Dokansv/Godk - Doc respons/Approved                                    Kontr - Checked   Datum - Date   Rev       File

             LG/S Per Sjödén (                       )                                                1998-03-09      A

                                                            According to an article in The Economist, volume 343, 1998: “In International
                                                            Banking, there is only one success story: Citibank. …….. Citi stands alone in
                                                            making itself the bank of choice for wealthy businesmen around the world”.
                                                            Attachment 1.

                                                            15 years ago Citicorp was close to ruin due to the crisis in Latin America.



                                    3.1                     STRUCTURE OF THE CORPORATION

                                    3.1.1                   The Board

                                                            Chairman of Citicorp and Citibank NA is Mr John S Reed. The Boards of
                                                            Directors consists of 14 persons including Mr Reed, whereof 7 seated in 7
                                                            industrial companies, one in University/Institute, one in the US Government
                                                            and remaining in Citicorp and Citibank NA.

                                    3.1.2                   The Management

                                                            The Management comprises Country Corporate Officers from 96 countries
                                                            and Corporate State Officers from 13 US States. Citibank is represented in
                                                            Stockholm under the name of Citibank International PLC. Mr James E.
                                                            Morrow is the Country Officer (director).

                                    3.1.3                   Parent Company and Subsidaries

                                                            Citicorp is Parent Company (Holding) of Citibank. There are numbers of
                                                            affiliates to Citibank.

                                    3.1.3.1                 Decision makers

                                                            The main decision makers are the Board of Directors where a.o. Mr Paul J.
                                                            Collins is member and the Country Corporate Officers as well as the
                                                            Corporate State Officers. Attachment 2.

                                                            Structure and name of decision makers on Middle Management level isn’t
                                                            investigated due limited time resources.

                                    3.1.3.2                 The relations between Subsidaries and the Parent Company

                                                            The main Citibank responsible for new Technology in Europe is Citibank in
                                                            Frankfurt.

                                                            Decisions on economy in Sweden such as more important credit decisions
                                                            are forwarded to Citibank in London. However, the operative freedom is
                                                            relatively high at the individual offices.
EN/FAD 109
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                                                                                                      Internal Ericsson Wide
                                                                                                      REPORT                              4 (6)
             Uppgjord (även faktaansvarig om annan) - Prepared (also subject responsible if other)    Nr - No.

             KI/ERA/LG/S Ragnar Poijes +46 8 757 17 44                                                LG/S-98:0085
             Dokansv/Godk - Doc respons/Approved                                    Kontr - Checked   Datum - Date   Rev       File

             LG/S Per Sjödén (                       )                                                1998-03-09      A

                                    3.1.4                   Ownership

                                                            Citicorp has approx. 52 000 common stockholders. Citicorp is the sole
                                                            shareholder of Citibank N. A. There is no individual owner with more than 5%
                                                            ownership.

                                                            On February 9 1998, Credit Suisse increased the rating of Citicorp from Buy
                                                            to Strong Buy.

                                    3.1.5                   Business development

                                                            The company has shifted from product or geography centered strategy to
                                                            customer centered. They have also “recognized the challenge, risk and
                                                            opportunities of the electronic world”. It should probably be interpreted as
                                                            Citibank is interested in the Electronics as a tool for development and
                                                            improvement of the banking.

                                                            Citibank has so far suffered relatively litte from the turmoil in S.E. Asia

                                                            Citicorp and Citibank is focusing on further expansion outside USA. Countries
                                                            to conquer or increase their presentation in seems to be China and S E Asia
                                                            as well as UK and France and former E. European countries such as the
                                                            Czech Republic, Poland and Hungary.

                                                            W.Europe was 1996 standing for 29% of the Corporate Banking, Asia and
                                                            Pacifics for 25% , N. America for 20% and S.America for 17%.

                                                            Of the Consumer Business revenues emanated in 1996 56% from North
                                                            America, 17% from Europe and Japan, 16% from Asia Pacific, Middle East,
                                                            Africa, Eastern Europe and 11% from Latin America.

                                                            The Revenue of Consumer Business is reported as 49% from Cards, 43%
                                                            from Citibanking and 8% from Private Banking,

                                                            Citibank has announced an agreement to acquire the European Global Trust
                                                            and Agency Services from J.P. Morgan.



                                    3.1.5.1                 Citicorp and Telecoms

                                                            To reach their business goal with very high degree of availability, flexibility
                                                            and cost efficiency, Citibank is securing resources for hich tech electronic
                                                            solutions, mainly in the consumer banking segment. To connect and keep
                                                            together the wide spread “electronic” branches, Citicorp is dependant on
                                                            wired and wireless telecom communications and in the near future probably
                                                            wireless communications such as cordless and mobile telephony and data
                                                            transmission.
EN/FAD 109
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                                                                                                      Internal Ericsson Wide
                                                                                                      REPORT                           5 (6)
             Uppgjord (även faktaansvarig om annan) - Prepared (also subject responsible if other)    Nr - No.

             KI/ERA/LG/S Ragnar Poijes +46 8 757 17 44                                                LG/S-98:0085
             Dokansv/Godk - Doc respons/Approved                                    Kontr - Checked   Datum - Date   Rev       File

             LG/S Per Sjödén (                       )                                                1998-03-09      A

                                                            Deutsche Telekom, DT, has released a portfolio of electronic business and
                                                            multimedia solutions where the ties to IBM are strengthend. IBM is DT’s
                                                            partner for secure payment systems. The new T-mart product line targets
                                                            small and medium sized companies worldwide. DT and IBM has announced
                                                            plans for a pilot project starting in March 1998. Several banks are interested
                                                            and so Citibank in Frankfurt. The system is based on Microsoft Commercial
                                                            Internet Systems (MCIS).

                                                            According to Clas Rönnlöv, account manager at Citibank Corporate in
                                                            Stockholm, discussions are ongoing with Ericsson concerning new telecom
                                                            applications. A MD 110 is under installation at the Citibank office. Mr Rönnlöv
                                                            also mentioned there is an interest from the Stockholm office to develop
                                                            cordless banking systems for the entire Citibank organisation. It’s unclear
                                                            where and at what level in the organisation this ambition is agreed.

                                                            Citibank in San Fransisco, California has a division named Advanced
                                                            Technology and responsible for new electronic systems, according to Mr
                                                            Rönnlöv. They are said to be future minded.

                                                            “Citibank is embracing the Internet and its Web site will incorporate element
                                                            aimed at building one-on-one relationships with clients”, according to an
                                                            article in Bank Technology News, Sept.1997.

                                                            As prominent in a group of six financial services companies Citibank has
                                                            made a 1 MUSD stock investement in Security First Network Bank, the
                                                            holding company for Security First Technologies, a provider of Internet
                                                            banking software. Citibank has also bought an ownership stake in Meca
                                                            Software’s Managing Your Money, which makes Citibank one of six financial
                                                            institution owners of Meca.

                                                            There has been big movements in Internet security according to Josh
                                                            Grotstein, division executive of Internet/intranet at Citibank. It means banking
                                                            via Internet could be an essential part of Citibank’s business.

                                                            Citibank also plans to add chat rooms and discussions groups to its Web site
                                                            to build communities to its customer base. The Web is a phenomenal vechicle
                                                            for building one-to-one relationships, Mr Grotstein has said.

                                                            Citibank has signed a multiyear agreement with Mining Co., a builder of virtual
                                                            communities. Mining Co will build virtual communities over the Internet as a
                                                            way to fostering intense, long lasting relationships with Citibanks customer.
                                                            The services will be rolled out in USA first but is planned to be available
                                                            worldwide later on.

                                                            The analysts Wulff of Jupiter Communication says: “ Every bank’s dream is to
                                                            own their customer. The goal is to insert your brand into many important
                                                            aspects of a customer’s daily life, whether it’s travel, sports or gardening”.

                                                            In the Embarcadero Center, San Fransisco and Northbrook Court Mall,
                                                            Chicago has Citibank opened prototypes of so named “high-tech branches”.
                                                            Next will be New York City’s Harlem. The idea is to provide Citibank with an
EN/FAD 109




                                                            expected low cost means of entry into new markets.
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                                                                                                      Internal Ericsson Wide
                                                                                                      REPORT                            6 (6)
             Uppgjord (även faktaansvarig om annan) - Prepared (also subject responsible if other)    Nr - No.

             KI/ERA/LG/S Ragnar Poijes +46 8 757 17 44                                                LG/S-98:0085
             Dokansv/Godk - Doc respons/Approved                                    Kontr - Checked   Datum - Date   Rev       File

             LG/S Per Sjödén (                       )                                                1998-03-09      A

                                                            Another sideline of Citibank’s recent activities is hiring Kevin Newman, UK, a
                                                            nationwide telephone based direct bank. Some analysts think it indicates
                                                            Citibank is itching to roll out a telephone based bank. According to Citibank’s
                                                            CEO John Reed, the bank is now focusing on higher level of profitability and
                                                            cutting costs. Such a cost reduction could be the centralizing of activities. E.g
                                                            the credit card processing operations in S.Dakota will handle accounts from
                                                            44 countries.

                                                            Smart card for small cash are not yet used in USA by other than closed
                                                            environments like military facilities and similar. However, Citibank and Chase
                                                            Manhattan Bank have started a trial in New York City (1997Q4). 100 000
                                                            Smart Cards will be issued. To play up consumers convenience, Citibank has
                                                            offered a device named personal ATM, which they can hook up to their
                                                            telephones to reload their smart cards.



                                    4                       LIST OF SOURCES

                                                                  Citicorp Annual Report 1996

                                                                  Article: The Economist. 24 Jan 1998 Finance and Economics: Citibank
                                                                   goes for …

                                                                  DB search on Citicorp and Citibank: Bank Techn. News, Sept. 1997;
                                                                   Business & Industry 1998; Wall Street Journal, Oct. 22, 1997; New York
                                                                   Times, Oct.22, 1997; Business Standard, Sept. 16, 1997; American
                                                                   Banker, Oct. 16, 1997; Crain’s New York Business, Sept. 29, 1997; US
                                                                   Today, Oct. 06, 1997; Information Week, Sept. 29, 1997, .

                                                                  DB search on Citicorp and Citibank in First Call, in Investtext and in
                                                                   Dun&Bradstreet with search argument Brokers Reports and news in Dow
                                                                   Jones and Reuters.

                                                                  Citicorp Homepage, www.citicorp.com

                                                                  Citibank, Stockholm. Telephone interview with Mr Clas Rönnlöv, account
                                                                   manager.
EN/FAD 109
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