Nearly half of Californians believe 2012 will be better than 2011, according
to the latest Citi California Pulse(R), a sign that the state's residents are
increasingly optimistic about the coming year. Thirty-three percent expect
this year to be about the same as last year, and only 17 percent say it will
be worse.

Additionally, Citibank's latest quarterly survey found that the outlook is
improving among residents regarding the California economy, jobs and their
personal finances. Looking ahead 12 months, 66 percent of Californians say
their personal financial situation will be better, 52 percent say the
California economy will improve, and 51 percent say job opportunities will
brighten. When asked how they feel about the state, 85 percent say they are
proud of California and 63 percent say it is an excellent or good place to
live.

"We are pleased to see this optimism going into the new year and that many
Californians are looking forward to improving conditions in 2012," said
Rebecca Macieira-Kaufmann, President of Citibank California. "Our survey
continues to show the incredible resilience and pride of Californians,
which is a great sign for the state's future."

When asked about California's leadership position in certain industries,
66 percent say the state remains a leader in the Entertainment Industry,
47 percent in Technology, 43 percent in the Green Industry, 43 percent in
Fashion/trend-setting, and 20 percent in Education.

Citi California Pulse(R) Optimism Index

The Citi California Pulse Index of Optimism rose to -4 in the fourth quarter
of 2011, up from -7 in the third quarter. At 0, the index would be on the
exact middle point of all possible scores, which range from +100 to -100.
Among the survey's key findings:
-- 64 percent say they are worried about another recession;
-- 59 percent believe their debt level will be lower in 12 months;
-- 58 percent say more jobs and a rising employment rate would be the best
   signs that the California economy is improving; only 1 percent say construction
   on new housing would be a sign of improvement;
-- 57 percent say the U.S. economy concerns them the most among economies,
   while 28 percent say the California economy is their biggest concern and only
   11 percent say Europe.
Spending and Saving Behavior
The survey showed continuing changes in spending and saving among Californians,
with 64 percent saying the behavior represents a permanent change. According
to the survey:
-- 68 percent have cut down on credit card use;
-- 60 percent have reduced the amount of money they owe;
-- 57 percent have postponed the purchase of a major item, such as a car;
-- 55 percent of those aged 18 to 34 have changed living arrangements to save
   money;
-- 50 percent have taken money out of investments to help pay expenses.
When asked how they feel about retirement, 55 percent of Californians say they
are somewhat or very uncomfortable with their current level of savings; 46
percent of those aged 35-54 have thought about postponing retirement.
Regional Differences
The latest survey again found significant differences among residents of Southern
California and Northern California, particularly in the San Francisco Bay Area,
where residents are much more optimistic than the rest of the state. The
California Pulse Index of Optimism came in at +11 in San Francisco, while it was
--4 in San Diego and -6 in Los Angeles; the total for all other counties in the 
 state was -5.
-- 73 percent in the Bay Area believe their financial situation will be better
   in 12 months, compared to 62 percent in San Diego and 61 percent in Los Angeles.
-- 62 percent of Bay Area residents expect that job opportunities will improve
   in the next 12 months, compared to 50 percent in Los Angeles and 47 percent in
   San Diego.
-- In the Bay Area, 59 percent of respondents say they expect 2012 to be better
   than 2011, compared to 52 percent in Los Angeles and 41 percent in San Diego.
-- 30 percent in the Bay Area say things in California are headed in the right
   direction, compared to 23 percent in Los Angeles and 21 percent in San Diego.
-- Looking at current conditions, 19 percent in the Bay Area call the job
   environment excellent or good, while just 8 percent in Los Angeles and San Diego
   feel the same.