Citigroup Funding ELKS 8.50% Chesapeake Energy Corp. due 4/4/2008 (ECC)

Citigroup Funding Inc., 8.50% ELKS (Equity LinKed Securities) based on the common stock of Chesapeake Energy Corp. (NYSE: CHK), due 4/4/2008, and issued at $10 per ELKS. The ELKS pay a total of $0.8642 in cash composed of $0.5157 in interest (5.0727% per annum) and $0.3485 in option premium, which is payable on 10/4/2007 and 4/4/2008 to holders of record at the close of business on the third business day prior to the payment date. At maturity the holder will receive either 0.32510 common shares of Chesapeake Energy if the price of Chesapeake Energy's shares at any time during the term of the ELKS is less than or equal to $24.61 (80% of the initial share price of $30.76 on 3/23/2007) or $10 in cash. The holder also has the right to elect to receive the cash value of the shares due at maturity. The ELKS are NOT principal protected and at maturity the holder could receive common shares or cash whose value is less, and possibly significantly less, than the original investment in the ELKS.