Citibank Alliance

A ssociated Banc-Corp and Citibank USA have entered into a long-term agreement which includes the sale of Associated’s $130 million credit card portfolio to Citibank. Under the agreement, the two companies will offer Associated-branded credit cards to Associated’s approximately 300,000 cardholders and Citibank will service the accounts.

Associated President and Chief Operating Officer Robert C. Gallagher said, “We chose to partner with Citibank, the nation’s premier credit card issuer, because of its strength, skill, and commitment to service and privacy. The alliance allows us to maximize the value of our card business,” he said.

The transaction is expected to close early in the second quarter of 2000. On closing, Associated expects to recognize a gain of approximately $12 million.

Citibank USA is the affinity credit card unit of Citibank, the nation’s largest issuer of MasterCard and Visa cards. Citibank is part of Citigroup, which provides some 100 million consumers, corporations, governments, and institutions in 100 countries with financial products and services. Additional information may be found at http://www.citigroup.com

Associated Banc-Corp., is a diversified multibank holding company with total assets of $12.5 billion. Associated has more than 200 banking offices and 225 ATMs serving more than 150 communities in Wisconsin, Illinois, and Minnesota. More information is available at http://www.associatedbank.com.

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