Settlement Allows Investors to Access Funds Frozen in Auction Rate

                                 Securities



    HARRISBURG, Pa., Aug. 7 /EMWNews/ -- The Pennsylvania Securities

Commission is pleased that as a result of an agreement in principle entered

into by Citigroup, the United States Securities and Exchange Commission and

state securities regulators represented through the North American

Securities Administrators Association (NASAA), many investors whose funds

have been unavailable as a result of the discontinuance of support for

auction rate securities (ARS) auctions will be able to recover their frozen

assets.



    Citigroup has offered to repurchase all ARS sold to its retail

customers who held those securities on February 12, 2008 (when the auctions

ceased to function), no later than November 5, 2008. This will mean that

individual investors, businesses with account values up to 10 million

dollars and all charities will receive their invested funds. Citigroup has

also consented to engage in an arbitration process to resolve claims of

consequential damages by its retail investors.



    Citigroup will pay a penalty in the amount of 50 million dollars to the

states as a result of issues raised by state securities regulators

concerning marketing of ARS and the unavailability of Citigroup records.



    Pennsylvania and other members of the task force are continuing their

investigations of other companies involved in selling ARS product to

investors.



    The Pennsylvania Securities Commission has been a participant in

NASAA's special task force created to provide remedies for investors. The

investor funds are tied up in ARS which had been offered as the liquid

equivalent of cash but were suddenly frozen when the auctions ceased

earlier this year.



    While the Citigroup settlement only affects customers who purchased ARS

through Citigroup, the settlement represents a potential breakthrough for

all investors who are similarly situated. Whether they were individuals,

corporations, or charities the loss of liquidity represented by these

investments has imposed great hardship.



    "In difficult economic times, state securities regulators are doing all

in their power to uphold the trust of investors in the securities

marketplace," said Chairman Lam. "Resolution of remaining ARS issues will

go a long way toward restoring investor confidence."