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Standard & Poor's To Take Over Smith Barney's Global Equity Indices - With Addition Of Benchmark Series, S&P Emerges As Leading Full-Service Index Provider

Date 13/11/2003

Standard & Poor's, the leading provider of independent investment research, indices and ratings, today announced that it has entered into an agreement with Citigroup to transition over Smith Barney's global benchmark index business (formerly known as the SSB Global Equity Index System) to Standard & Poor's Index Services. The indices, now to be known as the S&P/Citigroup Global Equity Indices, add significant capabilities to Standard & Poor's position as the world's leading index provider, strengthening the ability to offer a comprehensive suite of benchmark and tradeable index products and services. Standard & Poor's existing indices, such as the S&P 500 and those comprising the S&P Global 1200, will not be affected by the transaction and no changes to the S&P/Citigroup index methodology are foreseen.

The S&P/Citigroup indices cover more than 7500 companies in 52 markets around the world and offer free float-adjusted index history back to 1989. The depth and breadth of the S&P/Citigroup index data and the continuation of its rules-based methodology will enable Standard & Poor's to offer institutional investors a comprehensive set of global benchmarks that will meet the needs of both passive and active portfolio managers. The indices will also provide a platform from which Standard & Poor's will expand its investable and custom index capabilities.

"Through the addition of this world-class benchmarking business, Standard & Poor's becomes a full-service index provider, offering the marketplace a wider range of index products and services," said Paul Aaronson, executive managing director, Standard & Poor's. "With the new S&P/Citigroup index series, Standard & Poor's boosts its ability to offer broad market benchmarks as well as custom indices on a global basis, building on the extensive index data, calculation and analytical tools available in both the S&P/Citigroup and investable indices Standard & Poor's has developed over the last 75 years."

"Our decision to work with Standard & Poor's is the result of thoughtful consideration and our utmost confidence that clients will be provided with the seamless transition of quality and service," said Bill Kennedy, Director of Global Equity Research, Smith Barney. "Standard & Poor's longstanding commitment to integrity and excellence makes them a model choice for the operation of these indices. In turn, Smith Barney will use this opportunity to focus on the core areas of its research business."

"Standard & Poor's is already the global leader in tradeable and investable indices and we remain committed to the S&P 500 and the S&P Global 1200 as flagship indices for investors and investment products worldwide," said Robert Shakotko, managing director, Standard & Poor's Index Services. "This expansion into the broad benchmarking arena makes Standard & Poor's a comprehensive provider of indices centered on accuracy, objectivity and integrity and enables us to serve investors' indexing needs globally."

The calculation of the S&P/Citigroup indices will be transitioned over to Standard & Poor's Index Calculation Engine (SPICE), the exclusive operational system Standard & Poor's uses for its investable indices worldwide. SPICE is a fully scaleable, customizable, and dynamic index calculator capable of real-time and historical multi-currency calculations.

S&P/Citigroup constituent issues will be classified according to the Global Industrial Classification Standard (GICSĂ’), bringing the benchmarks in line with globally accepted standards used by index providers and investors worldwide. The indices will also continue to be available to clients under their former sector classification scheme. Index methodology, additions/deletions, and performance data are available to the public through the website www.equityindex.citigroup.com.

Standard & Poor's also announced that as part of the transition, index staff from Smith Barney will join Standard & Poor's in the New York and London offices.

More information about the S&P/Citigroup indices and S&P's family of global investable and tradeable indices is available on the S&P Indices area of www.standardandpoors.com.

Standard & Poor's
Standard & Poor's, a division of The McGraw-Hill Companies (NYSE:MHP), is the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research, data and valuations. With 5000 employees located in 20 countries, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions.