8 Beginning May 31, 2008, the assets and liabilities of the Crescent Real EstateEquities Limited Partnership were included in the Company`s consolidatedresults. 7 The cost of the replacement deferred compensation awards was fully allocatedto Citigroup and included in the net income / (loss) applicable tonon-controlling interests on page 8 of the Company`s financial supplement thataccompanies this release. 6 For the quarter ended June 30, 2009, real estate losses are reported in theInstitutional Securities ($0.3 billion) and Asset Management (negative revenuesof $0.2 billion and non-interest expenses of $0.2 billion) business segments. 4 Source: Thomson Reuters – for the period of January 1, 2009 to June 30, 2009. 5 Includes traditional, hedge funds and fund of funds asset management. 3 Net income for the first six months of 2009 and 2008 includes the operatingresults of MSCI Inc.

and gains related to its secondary offerings, as well asthe operating results and gains / losses related to the disposition of certainproperties previously owned by Crescent Real Estate Equities LimitedPartnership, a real estate subsidiary of the Company This activity is reportedin discontinued operations. For the quarter ended June 30, 2009, anegative adjustment of $0.2 billion was reported in other sales and tradingwithin Institutional Securities, reflecting the improvement in Morgan Stanley`sdebt-related credit spreads on certain debt related to China InvestmentCorporation`s investment in the Company in December 2007. 2 Improvement in Morgan Stanley`s debt-related credit spreads negativelyimpacted fixed income sales and trading and equity sales and trading by $1.3billion and $0.8 billion, respectively. Collectively, theseamounts reduced earnings per diluted common share by approximately $1.22.

1 Includes a negative adjustment of $850 million related to the acceleratedamortization of the issuance discount on the Company`s Series D Preferred Stock,a negative adjustment of $202 million related to the partial exchange of theCompany`s Series C Preferred Stock issued to MUFG for common stock and otherpreferred dividends and related adjustments of $353 million. For a discussion of additionalrisks and uncertainties that may affect the future results of the Company,please see “Forward-Looking Statements” immediately preceding Part I, Item 1,”Competition” and “Supervision and Regulation” in Part I, Item 1, “Risk Factors”in Part I, Item 1A, “Legal Proceedings” in Part I, Item 3, “Management`sDiscussion and Analysis of Financial Condition and Results of Operations” inPart II, Item 7 and “Quantitative and Qualitative Disclosures about Market Risk”in Part II, Item 7A of the Company’s Annual Report on Form 10-K for the fiscalyear ended November 30, 2008 and other items throughout the Form 10-K and theCompany’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Financial, statistical and business-relatedinformation, as well as information regarding business and segment trends, isincluded in the Financial Supplement. Both the earnings release and theFinancial Supplement are available online in the Investor Relations section at. # # # (See Attached Schedules) The information above contains forward-looking statements including statementsrelated to projected cost savings.