Citi Prepaid Services

1. Citi Prepaid Services An overview to delivering better, electronic payments

2. Agenda • Introduction to the Prepaid Industry • Prepaid Solution and Key Benefits Overview • Prepaid Solutions for State and Local Governments • Case Studies • Questions and Answers

3. Introduction to the Prepaid Industry

4. Prepaid Program Types

5. The Prepaid Market • Network branded solutions (open loop) had an overall increase of +44.5% in 2007. • Growth for network branded solutions is projected to reach $101.4 Billion in 2010 and $124.6 Billion in 2011.* • Open Network Branded Prepaid, 2007 growth**: • Public Sector +1,000% • State Unemployment +115% • Payroll +21% • Consumer Incentives +87% • Employee & Partner Incentives +81% • Mercator Advisory Group predicts that Network Branded solutions will continue to increase their penetration of market segments at the expense of Closed Loop solutions. *Source: Mercator, “Prepaid Market Forecasts 2007 to 2010”; October 2007 **Source: Mercator, “5th Annual Network Branded Prepaid Market Assessment”; August 2008

6. About Citi Prepaid Services 12 years prepaid experience as industry pioneers Manage prepaid programs for over 1,400 public and private sector clients Millions of prepaid debit cards issued globally Forecasting model and infrastructure enables scale for any volume Introduces streamlined workflows to organizations with improved tracking and communications Citi is the leading provider of Visa and MasterCard prepaid debit card programs

7. Citi Prepaid Solution and Key Benefits Overview

8. Public Sector Payment Challenges Streamlining cumbersome, inefficient processes for issuing paper checks Reducing payment production, distribution and management costs Providing a solution for all beneficiaries, including the underserved Mitigating issues around fraud and payment security Easing the management of lost and stolen checks Avoiding check delivery disruptions (e.g. weather, strikes, etc.) Enhancing the tracking and auditing of payments With constricting fiscal environments, agencies are facing payment challenges like: • State agencies can significantly impact their budgets by converting paper checks to more cost-efficient electronic alternatives.

9. The Citi Prepaid Solution Custom Visa®/MasterCard® prepaid card Re-loadable and re-usable Good everywhere Visa/MC debit cards are accepted Zero Liability Protection PIN and Signature Enhanced communications portal Custom branded website Real-time account information (IVR/online) Account activity alerts (text message/email) Dedicated areas for agency communications Turnkey solution Custom cardholder Welcome Kit Card issuance and account maintenance Marketing communications support 24/7/365 multilingual Customer Service 90% cost reduction

10. Key Program Components Reporting • Operational • Business Reports Infrastructure and Security • Redundancy • Scalability Implementation Methodology • Speed to Market • Focus on Quality • Training and Education

11. Prepaid Benefits for the Agency Better Financials Lower cost delivery Improve funds management Fraud Protection Payment Reversals Reduce required payment resources Reduce costs for the taxpayer Streamlined Operations No lost/stolen checks Eliminate administration associated with checks/cash Eliminate escheatment handling Powerful reporting, better auditing capabilities Powerful Communications Tool Comprehensive communication/notification package Ongoing communication with recipients

12. Prepaid Benefits for the Recipient Greater Convenience No checks to deposit or cash Funds available immediately Universal Visa/MasterCard acceptance Worldwide ATM access No lost or stolen checks “Zero Liability” fraud protection Better Communication and Service Detailed payment history online 24/7 balance updates (phone, online) 24/7/365 support (email, IVR, live reps) Email/text message alerts Special transfers Improved financial management No need to carry cash Online account management Robust payment tracking No need to spend money cashing checks

13. 131.4 282.3 541.3 Underserved Population in the US • 80 million consumers in the US without a traditional deposit account or with limited access to credit. • These consumers received almost $1 trillion in payments from employers, states, government entities, insurance companies and others • Over $1.5 billion in fees are paid to cash checks Approximately 80M “Underserved”… (Population in Millions) 9.0 27.1 Underserved Consumers 44.8 Unbanked (no banking relationship) Underbanked (low/ no credit score) Recent Immigrants ..with almost $1T in Income ($ Billions) Source: Study commissioned by Visa and performed by Bearing Point in 2006-2007

14. Cardholder Satisfaction Responding to publicity regarding cardholder fees on State Unemployment Debit card programs, we deployed an online survey for a State client to gather feedback from their claimants: 97% of claimants say receiving benefit payments quickly to their debit card (rather than by check) is important. 93% of claimants find it easy to use their debit card. 90% prefer receiving their UI payment to their debit card, rather than via paper check. 82% find it easy to access their debit card funds without any fees.

15. Prepaid Solutions for State and Local Governments

16. State and Local Prepaid Programs Replace existing check, voucher or cash payments with a more efficient, effective, secure and convenient prepaid program. • Payroll • Unemployment Insurance • Pension Payments • University Payments • Financial Aid & Payroll • Law enforcement • Juror, witness stipends • Worker’s Comp • Food Stamps & WIC • Child Support & TANF • Wellness Programs • Catastrophe/ Disaster recovery claims

17. Unemployment Insurance - Overview • What • Provide unemployed with prepaid debit card • Unemployed use card at ATM, point-of-sale or teller; ordirect deposit funds to bank account • Account enables all users to monitor deposits and access payment details (e.g., remaining # weeks on unemployment) • Benefits to State • Significant cost and efficiency savings; fraud reduction • Streamlined payment process – utilize one file to send all payment types • Central communications channel – one package with card usage and direct deposit instructions mailed to all recipients • Outsourced fulfillment to one of the world’s largest full service financial institutions • Benefits for Claimants • Flexible choices for how to receive payments • Accounts are FDIC-ensured; cards come with Zero Liability fraud protection • Instant online access to payment and spending history • Automated text alerts • Eliminate check-cashing fees; accommodates the unbanked • 24/7 multilingual customer support

18. Payroll & Pension Payments - Overview • What • Citi provides multiple ways to achieve 100% paperless pay for all recipients (banked and unbanked): • Payroll card for employees/retirees without bank accounts • Direct Deposit for those with bank accounts • Electronic Paystubs accessible via web, IVR, live rep, or fax back • Benefits to Employer • Eliminates over 75% of payroll processing costs • Pay all employees/retirees electronically; compliance with “free & clear” access to funds • Faster, more efficient and guaranteed payments, even during natural disasters or other emergencies • Outsourced fulfillment to one of the world’s largest full service financial institutions • Benefits for Employees/Retirees • Accounts are FDIC-ensured; cards come with Zero Liability fraud protection • Convenient options for accessing pay (spend, ATM, Pre-Check, cash advance) • On-time pay without need to travel to pick up or cash checks • Instant online access to payment and spending history • 24/7 multilingual customer support

19. Higher Education Refunds & Research – Overview • What • Automate all refund and research payments to banked & unbanked • Universities send payment instructions to Citi to manage payments to prepaid cards or bank accounts • Flexible withdrawal options for recipients to access funds • Benefits to University • Significant cost and efficiency savings, as well as fraud reduction • Faster, more efficient payments • One process to manage refund and research payments • Facilitated processing of each semester’s refund payments to card • Greater visibility to program metrics • Benefits to Recipients • Convenience of debit card for PIN-based and signature purchasing, ATM or teller cash access • No need to pick up check at bursar’s office • Eliminated check-cashing fees and reduce risk of carrying excess cash • Instant online access to payment and spending history • 24/7 multilingual customer support

20. Emergency Relief - Overview • What • Supply instant issue card supply to organizations in preparation for emergencies • On demand, organization can load payments and issue cards through online ClientZone tool or by integrating existing systems into Citi’s API • ClientZone management tool enables reloads and program tracking • Benefits to Entity • Payments are at the ready without the risk of holding large sums of cash for emergencies • Fully automated tool requiring minimal to no client integration • Portable, role-based online tool that is accessible at emergency sites and corporate headquarters • Benefits to Recipients • Quick, flexible access to funds via PIN-based and signature purchasing, ATM or teller cash access • Eliminate risk of carrying excess cash • 24/7 bilingual customer service support • Instant online access to payment and spending history

21. Case Studies

22. State of Maryland DLLR: Unemployment Benefits • Challenge • $450 - $900 million historically paid annually in UI payments • Payments made 100% by check, depleting the State’s financial and administrative resources • Unemployment rate at 7.5% in 2009, highest in 12 years and climbing • Citi Solution • Replace unemployment benefit checks with a custom reloadable stored value card • Comprehensive outsourced 24/7 cardholder support • Results • Migrated payment process to fully electronic platform • Increased convenience, delivery speed and access flexibility for claimants • Achieved cost savings of over $1.00 per check preplaced by an electronic payment • 67% reduction in payment inquiries to customer service

23. National Guard: Incentive/Reward • Challenge • Optimize recruitment program across all 50 states through referrals and recommendations • Reduce program costs • Enhance program tracking and visibility • Citi Solution • Replace paper checks with a custom stored value card for recruitment referrals • Results • Increased program referrals more than 35%, among most effective in U.S. National Guard history • Reduced program costs by more than 40% • Created direct communication channel to recruits

24. Chicago Parks Department: Payroll • Challenge • The Chicago Park District (CPD) is responsible for enhancing the quality of life throughout Chicago. • CPD wanted to decrease the payroll expense related to delivering checks and reduce the expense for employees to access their pay • Citi Solution • A customized Citi Prepaid Program helped the CPD significantly reduce employer costs associated with payroll expenses, as well as reduce banking expenses for the employee. • Results • “From the start, we had confidence in Citi’s ability to implement the solution. Citi assured us that implementation and adoption of their payroll card program would be transparent – not only was Citi able to seamlessly work with our existing Oracle payroll system, the pay card implementation did not create additional or extensive work for the payroll manager or our employees.”

25. Questions Thank you. Doug Haines N.A. Market Manager, Citi Prepaid Services Doug.haines@citi.com