CitiStreet Reports Sales Growth in All Markets; Large Corporate Client

    Business Editors

    QUINCY, Mass.--(BUSINESS WIRE)--April 14, 2005--CitiStreet grew its business across all market segments last year, from several large corporate and government entities such as AON Corp., OfficeMax Incorporated and Montgomery County, Md., to hundreds of small- and medium-size sponsors, it was reported today.
    "The growth reflects our commitment to personalized service, constant technology enhancements and our strong focus as solely a benefits administrator," said Philip Lussier, chairman and CEO of CitiStreet.
    Large institutional clients added $7.6 billion to defined contribution assets under CitiStreet's administration, and the addition of more than 500 small- and mid-size plans brought in $525 million, the company reported. The new business brought total assets under administration to $216 billion for an 11 percent increase for the year. CitiStreet also significantly grew its defined benefit and health and welfare administration business with several expanded contracts and the addition of new clients.
    CitiStreet Australia, meanwhile, opened a new office in Melbourne to accommodate its growing business in that country, adding to offices in Sydney and Brisbane. It also entered an agreement to provide outsourcing for Watson Wyatt Australia Pty Ltd. clients.
    Lussier said he anticipates CitiStreet continued annual growth of 10 percent to 12 percent over the next five years.
    Significant growth, he said, is expected to come in the areas of small- and middle-market clients as CitiStreet increases its focus in those areas.
    He noted that continued enhancements in technology by CitiStreet now allows companies of 3,000 to 5,000 employees to be brought upon a sophisticated platform that once served mainly large institutions with 10,000 and more employees.
    With the push into the middle- and small-size markets in mind, CitiStreet recently re-aligned by combining the former Institutional Division in Massachusetts and the 401(k) business serviced out of New Jersey and placing them under the direction of Lussier.
    "This will allow for economies to fuel our growth," Lussier said. "The re-alignment also will allow broader leveraging of the strengths of our parent corporations, Citigroup and State Street."

    About CitiStreet

    CitiStreet, one of the largest global benefits delivery firms in the United States, is headquartered in Quincy, Mass. CitiStreet, with 3,000 employees, has offices in Somerset, N.J., Jacksonville, Fla., Lewiston, Maine, Boston, MA, and field offices around the nation. It also has a division, CitiStreet Australia, with offices in Sydney, Brisbane and Melbourne. CitiStreet serves more than 9 million participants and administers approximately $215 billion in assets in the United States for defined contribution, defined benefit and health and welfare plans of corporate, government, health care, Taft-Hartley and not-for-profit organizations. It also serves about 1 million participants and administers about $9 billion in assets outside the United States. CitiStreet is a 50/50 joint venture between State Street Corp. (NYSE:STT) and Citigroup (NYSE:C). For more CitiStreet information, visit the Web site at www.citistreetonline.com.

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CONTACT: CitiStreet Sandy McCarthy, 617-376-9100 President, Retirement Services smccarthy@citistreetonline.com or Michael Bezdek, 781-792-2700 mbezdek@getpress.com

KEYWORD: MASSACHUSETTS INDUSTRY KEYWORD: BANKING SOURCE: CitiStreet

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