News Release

Two Businesspersons Appointed
to Board of Los Angeles Fed

Branch zone with over 25 million people encompasses Arizona, Southern Nevada, and Southern California

Mr. Goldsmith is CEO and chairman of City National Bank, the premier private and business bank headquartered in Southern California. After graduating from law school, Mr. Goldsmith began his career practicing entertainment law and eventually founded his own practice. Subsequently, Mr. Goldsmith was chief operating officer of Lorimar, Inc., and chairman and CEO of Republic Pictures Corporation. He serves on the board of directors of the Los Angeles Public Library Foundation, the board of trustees of Harvard-Westlake School, and the board of governors of Cedars-Sinai Medical Center.

Mr. Jones is president and CEO of San Diego-based CityLink Investment Corporation, an enterprise that acquires, develops, and manages real estate ventures and helps to renew urban areas. After graduating from Harvard Business School, Mr. Jones was an executive with Prudential Realty Group. Mr. Jones served on the San Diego City Council in the mid-1980s. Prior to his elected service, Mr. Jones served as a legislative aide and chief of staff to a San Diego city councilperson. He is the founder and a trustee of the "Project I Believe" scholarship program, which mentors and financially supports the academic pursuits of an elementary school class. He is also a trustee of the University of San Diego, his alma mater, and serves on the board of directors of Sempra Energy (the new entity created by the merger of Enova Corporation and Pacific Enterprises).

Mr. Goldsmith and Mr. Jones were appointed for three-year terms on the seven-seat L.A. branch board, replacing, respectively, Stephen Carpenter, former chairman of California United Bank in Encino, and Anne Evans, chairman of Evans Hotels in San Diego. Mr. Carpenter served a three-year term. Ms. Evans served more than six years on the Los Angeles branch board and was chairwoman during the last two years. Mr. Goldsmith was appointed by the board of the Federal Reserve Bank of San Francisco (the Los Angeles office is one of four branches of the San Francisco Fed). Mr. Jones was appointed by the Fed's Board of Governors in Washington, DC. Their service begins on January 1, 1999.

Incoming Chairman Kane said, "Russell Goldsmith and William Jones will be part of a board team responsible for one of the Federal Reserve System's largest operations. The work of our Fed branch is vitally important, and the appointment of quality directors like Mr. Goldsmith and Mr. Jones further ensures that the Fed is receiving broad input on the local economy and staying in touch with the opinions of the zone's various communities."

The Federal Reserve, the country's central bank, is a safeguard of the nation's financial system. It manages U.S. monetary policy, protects consumer rights, and provides wholesale financial services. For example, the Fed controls the amount of money circulating in the economy, requires lenders to disclose loan terms to customers (i.e., ensures that there is "truth in lending"), and provides currency and check clearing services to banks. There are 12 district banks in the Federal Reserve System. The Federal Reserve Bank of San Francisco is the district bank that serves the nation's nine westernmost states. Information on the Fed can be obtained at Web site address www.frbsf.org.