Discover Financial Services to Acquire Diners Club International Network

Discover Financial Services (NYSE:DFS) announced today that it has
signed an agreement with Citi (NYSE:C) to acquire Diners Club
International, resulting in a global payments network with increased
transaction volume and worldwide acceptance of Discover Network cards
once the networks are fully integrated.

Discover will purchase the business for $165 million. Under the
terms of agreement, Discover will acquire the Diners Club
International network with more than $30 billion per year in spend
volume outside of North America; its brand and trademarks; its
employees; and agreements with 44 network licensees who issue Diners
Club cards and maintain an acceptance network consisting of more than
8 million incremental merchant and cash access locations in 185
countries worldwide. Citi will remain a significant long-term issuer
on the Diners Club network as part of the transaction.

Discover will not issue cards or extend consumer credit in
international markets as a result of this acquisition.

"We expect this acquisition to significantly improve our
competitive position by giving us global reach and accelerating growth
in our payments network revenues," said David Nelms, chief executive
officer of Discover. "Like Discover, Diners Club International is a
pioneer that built its market position through high quality service,
superior cardholder benefits, and differentiated products and
services. One of its key strengths is the commitment of Diners Club
licensees to the Diners Club International brand in local markets. We
look forward to working with international licensees to leverage the
synergies between our companies to create greater opportunities for
our cardholders, merchants and issuers as we continue to invest in the
Diners Club brand."

Over the next two-to-three years, Discover expects to integrate
both networks to allow Discover Network cardholders to use their cards
at merchants that accept Diners Club cards around the world, and
Diners Club cardholders to use their cards on the Discover Network in
North America. Participants of Discover Network and Diners Club
International licensees are expected to benefit from increased
transaction volume resulting from broader acceptance, while merchants
outside of North America will benefit from the spending of Discover
Network cardholders while traveling.

"Our strategic decision to sell the Diners Club International
payments network to Discover is consistent with Citi´s efforts to
streamline its businesses to focus on what Citi does best. For Citi,
this means growing our card issuing businesses around the world," said
Ed Eger, Head of International Cards for Citi. "At the same time, we
are excited about the opportunity to work with a long-term partner
that has the commitment and experience to expand the acceptance
network of such a highly regarded franchise. We look forward to
supporting the Diners Club International network and to ensuring a
smooth transition for cardmembers and our licensee, merchant, and
client partners."

Diners Club licensees in North America and globally are not
included in this acquisition. Diners Club cardmembers can continue to
use their cards as usual and will maintain all benefits related to
their current card programs. While not included in the transaction at
this time, Diners Club assets and employees in France are expected to
be included shortly.

Diners Club International has a rich, 50-year heritage as a
premium card brand for upscale consumers, frequent travelers and
corporations. Since launching the first general purpose credit card in
1950, Diners Club has grown to attain status as a premier global
payments network. Discover, a leading credit card issuer and
electronic payment services company, has one of the most recognized
brands in U.S. financial services.

The combined company will bring together two respected brands with
experienced merchant acceptance networks that will enable cardmembers
to use their cards in more than 185 countries and territories.

The acquisition is expected to close within 90 days, subject to
required regulatory approvals and customary closing conditions.

A conference call to discuss the firm´s acquisition will be held
at 8 a.m. Central time and can be accessed by dialing 1-800-573-4842
(U.S. domestic) or 1-617-224-4327 (international), passcode 15539168.
The call will be accessible as an audio webcast through the Investor
Relations section of the Web site. For those unable to listen to the
live broadcast, a replay will be available on our Web site or by
dialing 1-888-286-8010 (U.S. domestic) or 1-617-801-6888
(international), passcode 24976865, beginning approximately two hours
after the event. The replay of the conference call will be available
through April 14, 2008.

About Discover Financial Services

Discover Financial Services (NYSE:DFS) is a leading credit card
issuer and electronic payment services company with one of the most
recognized brands in U.S. financial services. The company operates the
Discover Card, America´s cash rewards pioneer, with more than 50
million cardmembers. Since its inception in 1986, the company has
become one of the largest card issuers in the U.S. Its Third-Party
Payments business consists of the Discover Network, with millions of
merchant and cash access locations, and PULSE, one of the nation´s
leading ATM/debit networks. For more information, visit
www.discoverfinancial.com.

This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements are based upon the current beliefs and expectations of
Discover Financial Services´ management and are subject to significant
risks and uncertainties. Actual results may differ materially from
those set forth in the forward-looking statements. The following
factors, among others, could cause actual results to differ materially
from those set forth in the forward-looking statements: the actions
and initiatives of current and potential competitors; our ability to
manage credit risks and securitize our receivables at acceptable
rates; changes in economic variables, such as the number and size of
personal bankruptcy filings, the rate of unemployment and the levels
of consumer confidence and consumer debt; the level and volatility of
equity prices, commodity prices and interest rates, currency values,
investments and other market indices; the availability and cost of
funding and capital; access to U.S. debt markets; the ability to
increase or sustain Discover Card usage or attract new cardmembers and
introduce new products and services; our ability to attract new
merchants and maintain relationships with current merchants; material
security breaches of key systems; unforeseen and catastrophic events;
our reputation; the potential effects of technological changes; the
effect of political, economic and market conditions and geopolitical
events; unanticipated developments relating to lawsuits,
investigations or similar matters; the impact of current, pending and
future legislation, regulation and regulatory and legal actions; our
ability to attract and retain employees; the ability to protect our
intellectual property; the impact of our separation from Morgan
Stanley; the impact of any potential future acquisitions; investor
sentiment; and the restrictions on our operations resulting from
indebtedness incurred during our separation from Morgan Stanley.

These forward-looking statements speak only as of the date of this
press release, and there is no undertaking to update or revise them as
more information becomes available. Additional factors that could
cause Discover Financial Services´ results to differ materially from
those described in the forward-looking statements can be found in the
Company´s annual report on Form 10-K, filed with the SEC and available
at the SEC´s internet site (http://www.sec.gov).