News Release

HSBC and Yahoo! Enter Strategic Agreement to Allow Worldwide Person-to-Person Payment

Customers Can Send and Receive Payments Easily and Securely via Email Using Yahoo! PayDirect with HSBC; HSBC to Promote Products and Services Across Yahoo!s Network

30 July 2001

NEW YORK; LONDON; HONG KONG; AND SUNNYVALE, Calif. – Yahoo! Inc. (Nasdaq: YHOO), a leading global Internet communications, commerce and media company, and HSBC Holdings plc (NYSE: HBC) one of the world's largest banking and financial services organizations, today announced a strategic relationship.

The two companies plan to deliver a co-branded, person-to-person payments system called Yahoo!® PayDirect with HSBC, to Yahoo! consumers and HSBC customers around the world. The co-branded product is expected to launch later this year.

Additionally, HSBC will mount a comprehensive online and offline marketing program to make their products and services available to Yahoo!s 200 million consumers. Yahoo! will similarly market its services to HSBCs 28 million customers.

Financial terms of the agreement were not disclosed.

Through this agreement with HSBC, Yahoo!® PayDirect (http://paydirect.yahoo.com) will allow consumers to send and receive money, at home and overseas, via e-mail by linking their credit cards, debit cards or bank accounts to their secure Yahoo!

PayDirect account at HSBC. Consumers will be able to sign up for, and use, Yahoo! PayDirect across HSBCs online services and the Yahoo! network. It means Yahoo! and HSBC are removing the barriers to online commerce transactions for the companies loyal consumers around the world. It will also be possible to use Yahoo! PayDirect to electronically send money as a gift to family and friends, to collect contributions to group or charity events, and to pay for shopping and auctions purchases. The service adds to the features that make online commerce fast and easy, and gives buyers and sellers an additional option for settling the payment process.

Subject to certain regulatory approvals, Yahoo!® PayDirect with HSBC will commence later this year starting in the United States. Thereafter, and throughout 2002, the service will be extended to other countries and territories in which HSBC and Yahoo! operate. Existing users of Yahoo! PayDirect will be able to continue the service and maintain their accounts with HSBC.

Yahoo! and HSBC also aim to make the Yahoo! PayDirect technology available to other companies to enable commerce and person-to-person payment capabilities.

We are delighted to be working with Yahoo!, the Internets leading global consumer and business services company with the largest and most engaged Internet audience in the world, said Roberta Arena, HSBCs head of Global e-Business. The evolution of payments is a critical component of e-commerce and essential for the industry to meet its promise. This partnership is a natural, as we share a global footprint and a proven commitment to first class customer service. Complementing HSBCs expertise in global online payments are Yahoo!s strong core assets including its established presence in 24 countries, unsurpassed brand name, and active audience.

With this agreement, HSBC becomes our global financial partner, helping ready us for our next phase of growth and further extending Yahoo!s leading financial and commerce services, said Greg Coleman, executive vice president, North American operations, Yahoo!. We are thrilled to be working with HSBC to enable more consumers on a worldwide basis to transact on the web.