News Release

Energy Smart Consumer Loans Available Through HSBC Bank USA

10 April 2002

HSBC Bank USA has expanded its participation in the New York State Energy Smart loan program to include consumer loans. The low-interest loans, which feature a 4.5 percent interest rate reduction, are designed for qualified improvements to 1-4 unit dwellings in New York State. Loans are available from $500 to $25,000 for a maximum term of 60 months. HSBC has been offering Energy Smart commercial loans since November 2001.

"As a company that has made a strong commitment to protecting the environment, its important that we help our customers conserve valuable natural resources by making their homes more energy efficient," said Kathleen Whelehan, executive vice president, HSBC Bank USA. "Energy conservation is one of the easiest ways that we can preserve our environment. Additional benefits may include cost savings as well as a more comfortable living environment."

In order to qualify for the program, applicants must be a customer of one of the following utilities: Central Hudson Gas & Electric, Consolidated Edison, New York State Electric & Gas (NYSEG), Niagara Mohawk, Rochester Gas & Electric Corporation, or Orange and Rockland Utilities. The loan must be used for planned improvements that result in increased energy efficiency and meet the New York State Energy Research and Development Authority (NYSERDA) minimal energy requirements. Eligible improvements include:

Cooling/heating systems including furnaces
Energy Star® -- or equivalent windows, doors, and skylights
High-efficiency electric water heaters
High-efficiency home appliances
Insulation, duct sealing, and weather stripping
Under the terms of the program, NYSERDA will "buy down" the personal loan interest rate by 4.5 percent for qualified loans. For example, if a loan carries a 10.75 percent interest rate, it would be reduced to 6.25 percent.

As of April 1, 2002, consumers interested in obtaining more information about Energy Smart loans can visit their local HSBC branch or call 800-975-HSBC, option 2. Information is also available on the banks Web site.