The Fourth Quarter of 2010 Citi California Pulse™ Survey shows half of Californians
expect 2011 to be better than 2010. Northern Californians and younger residents are
more optimistic. Few Californians plan to increase spending in 2011; most expect to
decrease or spend the same as last year.

Many Californians believe 2011 will bring improvement in both the national and regional
economies as well as in their own personal lives, according to the latest Citi
California Pulse™. Half of those surveyed say they believe 2011 will be better than
2010, while 39 percent say they expect this year will be similar to last year and
only 8 percent say it will be worse. When asked about conditions over the next 12
months, 64 percent expect their personal financial situation to improve and 55 percent
say both job opportunities and the California economy will be better.

At the same time, Californians see little tangible evidence of economic improvement
today, and as a result they continue to take action to improve their personal financial
situation, such as cutting back on spending, and saving or investing more. Citibank’s
latest quarterly survey found that in 2011, a majority of respondents plan to take a
more active role in their finances (61 percent), cut back on everyday expenses (58
percent), save and invest more (57 percent), and make changes to improve their
financial situation (56 percent.)

“Our survey continues to reflect the resiliency of California and its residents,”
said Rebecca Macieira-Kaufmann, President of Citibank California. “The findings
show optimism and hope for the future along with cautious behavior in the present,
as most Californians remain realistic about the current environment but look forward
to a better 2011 and beyond.”

Among the survey’s key findings:
• 91 percent call the economy in California only fair or poor
• 87 percent rate job opportunities in California as only fair or poor
• 60 percent say California is on the wrong track, while 25 percent say it 
   is headed in the right direction
• 48 percent say 2011 will be a good time to buy a home, while 47 percent say
   buyers should wait to see what happens to home prices
• 45 percent say real estate prices will remain about the same in 2011, 28
   percent say prices will increase, and 23 percent say they will fall
• 19 percent say they plan to travel more in 2011 than in 2010; 48 percent
   about the same and 22 percent say less

Spending Outlook – Males More Willing to Open Wallets
Continuing a trend of cautious spending that Citibank’s survey identified over the last
year, few respondents say they will spend more on discretionary items in 2011, with the
majority saying they plan to cut spending or keep it at 2010 levels. For example, only
17 percent say they will spend more on movies or plays this year, 10 percent on eating
out, 9 percent on purchasing watches or jewelry, and 6 percent on gambling. Forty-one
percent say they plan to spend more time connecting with friends or family.

The survey also found that California women are more conservative than the state’s men
about spending; 41 percent of males rate the current environment a good time to buy
big ticket items, such as cars or televisions, while only 29 percent of females agree.
And on all discretionary items surveyed – from sporting events to books and music to
new clothes – male respondents are more likely to increase spending this year than
female respondents.

Regional and Age Differences
The survey found continuing differences among residents of Southern California and
Northern California, as well as among younger and older Californians. When asked about
living in California, 76 percent in the San Francisco area rate the state as an
excellent or good place to live, while 24 percent call it only fair or poor. This
compares to the Los Angeles area, where 59 percent say California is an excellent
or good place to live and 39 percent rate it as only fair or poor. In addition:
• 65 percent in the San Francisco area believe job opportunities will be better
   in 12 months, compared to 55 percent in the Los Angeles area. Similarly 64
   percent over those aged 18-34 believe job opportunities will be better in 12
   months, compared to 49 percent of those aged 35-54.
• 60 percent in the Bay Area believe 2011 will be better than 2010, compared
   to 54 percent in Los Angeles. Among those aged 18-34, 64 percent see better
   times this year, compared to only 43 percent of those aged 35-54.
• And 78 percent of those aged 18-34 are optimistic that their own financial
  situation will improve in 12 months, while 61 percent of those aged 35-54
  feel the same way.