Press Release

Prospect Heights, IL - October 24, 2002 - Household International, Inc. (NYSE:HI) announced today the successful completion of a number of transactions that will significantly strengthen the company's capital base. As a result, the company is very confident that its key capital ratio of Tangible Equity to Tangible Managed Assets will be well in excess of the recently announced target of 8.50 percent.

These actions include:

• Issuance of 18.7 million new common shares, with net proceeds of $400 million;
• Issuance of mandatory units, with net proceeds of approximately $500 million;
• Reaching agreements in principle to sell $3.2 billion of loans and $4.3 billion of thrift-related deposits.

Commenting on these actions, Bill Aldinger, Household's chairman and chief executive officer said, "Today's actions reflect our unwavering commitment to maintaining our debt ratings and assuring our fixed income and equity investors that Household will continue to have full access to the capital markets."

With regard to the company's previously announced preliminary agreement with the national group of state attorneys general and regulators, Aldinger added, "I am also extremely pleased to report our understanding that 46 states so far have indicated their intent to join in the settlement, giving us a high degree of confidence that we will be able to finalize the agreement in the near future."

About Household
Household's businesses are leading providers of consumer loan, credit cards, auto finance and credit insurance products in the United States, United Kingdom and Canada. In the United States, Household's largest business, founded in 1878, operates under the two oldest and most recognized names in consumer finance - HFC and Beneficial. Household is also one of the nation's largest issuers of private-label and general purpose credit cards, including the GM Card® and the AFL-CIO's Union Plus® card. For more information, visit the company's web site at www.household.com.

CONTACTS:
Craig A. Streem, Vice President - Corporate Relations & Communications, (847) 564-6053,
or Celeste M. Murphy, Director -- Investor Relations, (847) 564-7568,
both of Household International