Federated Announces Strategic Credit Alliance with Citigroup

"We are very excited to be joining forces with a leader in the credit card business through this new alliance with Citigroup," said Terry J. Lundgren, Federated's chairman, president and chief executive officer. "We are exceptionally proud of the credit operation at FACS and pleased with the value that has been created in this business as a result of those efforts. We now look forward to working together with Citigroup to continue to enhance our relationship with our very best customers, while also building on our success in the credit business by capitalizing on Citigroup's great expertise and commitment to the credit business."

Marge Magner, chairman and chief executive officer of Citigroup's Global Consumer Group, said: "With nearly 140 million accounts worldwide, Citigroup is a global leader in credit cards. This relationship is part of our continuing effort to leverage our core strengths in partner alliances in the credit card market. We look forward to applying out innovative, world-class capabilities to help assure the ongoing success of the Federated and May retail partner programs and drive sustainable growth within our business."

"Federated and May credit card customers will be prime beneficiaries of this new partnership," added Steven J. Freiberg, Chairman and Chief Executive Officer, Citi Cards NA. "As the global leader in credit cards, Citigroup brings comprehensive, innovative and proven capabilities in a broad spectrum of the cards industry and by joining these with the expertise of Federated and May, we look forward to further enhancing the growth and performance of their credit card program and increasing its appeal to new and existing customers. Federated and May are recognized leaders in the department store sector and we look forward to working with its management to expand the success of their overall franchise."