Citigroup is a diversified global financial services holding company whose businesses provide a broad range of financial services to consumer and corporate customers. Citigroup has more than 200 million customer accounts and does business in more that 100 countries. At 31 December 2006, the Company had approximately 300,000 employees. In 2006, Citigroup generated revenues of $86.9 billion and net income of $21.5 billion. As at 31 December 2006 its net assets were $119.8 billion.

Citigroup represents a special situation, in which a privately negotiated investment was made in 1991 in new preferred shares at a time when Citigroup's predecessor, Citicorp, was in financial difficulty. KHC identified Citicorp as an undervalued company with a strong brand name and considerable upside potential. By negotiating an investment at a time when Citicorp was facing considerable difficulties, including under-capitalization and difficult market conditions KHC was able to acquire Citicorp shares at a significant discount to the market price.

The investment helped renew market confidence in Citicorp and, in the two weeks following the investment, Citicorp was able to raise an additional $600 million from a secondary set of international investors. Through his subsequent support, Prince Alwaleed remained a core shareholder through a period of corporate transformation for Citicorp, as it acquired Travellers, Smith Barney, Salomon and Schroders.

Citicorp proved to be one of KHC’s most successful investments. KHC’s stake is currently worth more than $9.2 billion based on Citigroup's closing price as of 30 March 2007. As of that date, the investment has yielded a lifetime internal rate of return of 27.4 percent per annum across several full economic cycles.

KHC continues to seek opportunities to expand its relationship with Citigroup. It is currently contemplating a number of co-investment partnerships with Citigroup, including a potential joint venture to provide securities and banking services within Saudi Arabia.