CIT to Acquire Barclays' UK and German Vendor Finance Businesses

CIT Group Inc., a leading global provider of commercial and consumer finance solutions, announced today that it has agreed to acquire the UK and German vendor finance businesses of Barclays Bank PLC. The gross assets of the acquired vendor finance businesses totaled approximately $2 billion (1.1 billion pounds Sterling) as of June 30, 2006, or 12% of the gross assets of Barclays Asset & Sales Finance.

This acquisition represents a significant step for CIT in its strategic effort to increase its presence in key European markets. In addition, the acquisition will significantly leverage CIT’s existing expertise in managing vendor relationships across Europe.

Barclays vendor finance businesses operate within Barclays Asset & Sales Finance, which is the specialist commercial asset finance provider within Barclays UK Business Banking. The businesses to be acquired provide asset finance to customers of industrial equipment and technology manufacturers and suppliers throughout the UK and Germany.

Approximately 60% of the purchased assets of the businesses to be acquired were originated in the UK with the balance in Germany. As part of the acquisition, CIT will also take on the vendor finance sales and administration staff in the UK and Germany. Barclays will retain its controlling interest in Iveco Finance.

“We are very pleased with this transaction as it represents a major growth opportunity within a core business, accelerates our international expansion and solidifies our position as a leading provider of global vendor finance solutions,” said Jeffrey M. Peek, CIT Chairman and Chief Executive Officer.

Naguib Kheraj, Group Finance Director, Barclays PLC, said, “This transaction leaves Barclays Asset & Sales Finance well-positioned for its future development. Significant investment will be focused on its core asset and sales finance business, including the ongoing expansion of its successful direct leasing business. The future strategy of the vendor finance businesses is now best pursued within a specialized leading global provider of asset finance solutions.”

Thomas B. Hallman, CIT Vice Chairman Specialty Finance, said, “This marks an important step in CIT’s European growth by accelerating our position in two of Europe’s largest markets. The first priority of our combined team of industry professionals will be the delivery of high levels of service to our UK and German customers and providing the opportunity to expand these relationships through CIT’s global reach.”

The completion of the sale is conditional upon receiving clearance from the relevant regulatory authorities and other customary closing conditions. The transaction is expected to close at the end of 2006.

JPMorgan acted as exclusive financial advisor to CIT on this transaction.