Press Release

Statement on Consumer Notification by States Attorneys General

5 August 2003

We are pleased that the settlement administration process with the attorneys general has passed another milestone as consumer notification begins.

Household has lived up to both the letter and spirit of our October 11, 2002, settlement. For a number of months, we have taken aggressive steps to continuously improve our consumer lending practices to the point where our standards now lead the industry.

Negotiating and implementing the settlement has been a complex task, as we have been working closely with the attorneys general and the appropriate regulators from all 50 states and the District of Columbia. Because all of the parties involved contributed a significant amount of time and effort, the implementation of the settlement represents further good news for Household and Beneficial consumers.