Press Release

Prospect Heights, IL - March 19, 2003 - Household International, Inc. (NYSE:HI) announced today that it is commencing the distribution of supplemental proxy materials relating to the special meeting of Household shareholders to be held on March 28, 2003 to approve Household's merger with HSBC Holdings plc (NYSE:HBC). The supplemental materials are attached to this press release.

The supplemental materials explain that, on March 18, 2003, Household agreed to the entry by the SEC of a consent order relating to prior public disclosures that describe certain of Household's restructuring and other account management policies. The SEC's findings in the order, which Household does not admit or deny, include findings that certain prior descriptions of Household's restructuring and other account management policies were incomplete or inaccurate in violation of provisions of the federal securities laws. Under the order, Household has agreed to cease and desist from any further violations of these provisions. The order does not require Household to pay fines or monetary damages. Household will not be restating any of its financial statements.

The SEC investigation is continuing as to others. We can not predict the outcome of such investigation at this time. It is our understanding that this concludes the investigation as to the company.

To provide further clarity on these matters, the supplemental proxy materials being distributed to Household shareholders and attached to this press release include a more detailed description of Household's restructuring and other account management policies.

"We have agreed to the entry of the consent order to resolve the SEC's disclosure concerns relating to Household," stated William F. Aldinger, Chairman and Chief Executive Officer of Household. "We continue to make significant progress towards completing our merger with HSBC, and we remain on track to be able to close the transaction shortly following the receipt of shareholder approvals at the meetings scheduled for March 28, 2003."

Click here to view the Proxy Supplement in .PDF format.

(free Adobe® Acrobat Reader® provided here)

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 website at www.household.com.

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