News Release

CIT commercial services acquires U.S. factoring assets of HSBC Bank USA

31 December 2003

CIT Group Inc. announced today that its Commercial Services business unit has acquired substantially all of the U.S. factoring assets and liabilities of HSBC Bank USA. The acquired assets approximate $1 billion before assumed liabilities with net assets acquired of approximately $270 million. Terms of the deal were not disclosed.

“This transaction reflects CIT’s corporate strategy to pursue growth opportunities that are synergistic with our core business lines and meet our return on equity targets,” said Jeffrey M. Peek, President and COO of CIT Group Inc.

“HSBC’s decision to exit the domestic factoring business was made as a result of our new strategic plan’s emphasis on our core U.S. businesses,” said Martin Glynn, President & CEO of HSBC Bank USA. “We were very pleased to be able to reach agreement with CIT, as their proven expertise as a leading provider in the industry is widely acknowledged.” HSBC Securities (Canada) Inc. advised HSBC Bank USA on this transaction.

CIT’s Commercial Services business has been providing accounts receivable and inventory financing solutions to commercial businesses since the 1920s. “This addition to our existing portfolio reinforces CIT’s commitment to the various industries that sell into retail channels of distribution,” added John Daly, President, CIT Commercial Services.