Press Release

Prospect Heights, IL - April 22, 2003 - Household International, a subsidiary of HSBC Holdings plc (NYSE: HBC), announced today that nine community based organizations in Dallas, Hampton Roads, VA and the Tampa Bay area, will receive a total of $1,010,450 in grants from Household International to help the local organizations provide grassroots financial education programs in their respective regions. The grants are part of Household's nationwide effort to better inform and educate young people, senior citizens, and low and middle-income families in developing their banking skills, money and credit management and learning more about homeownership.

"Household is committed to helping people improve their economic future by giving them the opportunity to learn about credit and money management skills. We are in the second year of this grassroots initiative," stated Bill Aldinger, Household chairman and CEO, "and we are very pleased with the results that have been achieved by these community partners."

Household began the financial education program in 2002, awarding over $1 million dollars to fourteen grass roots organizations in Atlanta, Chicago and Los Angeles. This year, thirty-seven applicants in Dallas, the Tampa Bay area and Hampton Roads, VA responded to Household's community outreach, and nine community organizations were selected. The communities were chosen based on the financial education needs of diverse populations and where Household had a significant business presence. They include:

DALLAS, TEXAS

• FAIM Economic Development Corporation ($114,000 over two years): The Ministry will provide a money management and credit education program to 10,000 members of the Friendship West Baptist Church with expansion planned to other area African-American churches and the broader community.
  Contact: Ellis Wamsley, IV - (214) 912-9765



• Texas Credit Union Foundation ($118,000): In collaboration with Jr. Finance and Communities in Schools, a total of 120 children ages 5-14 who live in public housing will be served in this program that focuses on financial education basics. Program components include field trips, a stock ownership simulation for students to manage using a $100,000 portfolio and $100 stipends for participants to open savings and mutual funds accounts.
  Contact: Danette Tidwell - (469) 385-6448



• Vecinos Unidos ($60,950): This organization helps redevelop rundown neighborhoods in West Dallas. Household's grant will support homebuyer education classes for low- and middle-income Latinos. Other services will include instruction on budgeting, credit management, identifying home financing sources and housing inventory. Vecinos Unidos is an affiliate of the National Council of La Raza (NCLR).
  Contact: Alicia Alaniz - (214) 761-1086

• Beacon Light Community Housing Development Organization, Norfolk ($109,000): This program will utilize the National Endowment for Financial Education's "Your Path to Financial Freedom" curriculum to teach money management basics to low and middle-income residents in Norfolk. As an incentive to complete the program, Individual Development Accounts (IDAs) savings accounts will be offered with a portion of deposits being matched by a bank. Three African-American churches are partnering to host the classes and the NCP Community Development Federal Credit Union is also collaborating on this initiative.
  Contact: Tammy Foster-Johnson - (757) 543-2400



• Community Resource Network, Chesapeake ($210,000 over two years): Partnering with Chesapeake Redevelopment & Housing Authority and VA Cooperative Extension, the two-year grant will enable 50 low-income and homeless Chesapeake families annually to obtain money management and budgeting basics through this agency. An incentive to attract and maintain participants is a program feature that will provide $1,000 for either applying toward education, home purchase or debt reduction for each family who completes the program.
  Contact: Ruth D. Hill - (757) 543-3324



• Family Services of Tidewater, Inc., Norfolk ($40,000): This is a joint venture with Tidewater Community College to teach financial literacy basics to students enrolled at their Chesapeake, Norfolk, Portsmouth, and Virginia Beach campuses. Classes will also be open to students' families and the community, including a significant number of military families.
  Contact: Bill West - (757) 625-2227 x113



• F.O.R. Kids, Norfolk ($43,500): This program will assist Norfolk families who are either homeless or living in transitional housing that the organization owns. Program participants will take part in a six-week class to learn money management, budgeting and credit education basics with the intent of leading the families to permanent housing and greater financial stability.
  Contact: Lynanne Gornto - (757) 622-6400

• Catholic Charities Community Development Corporation, St. Petersburg ($215,000): This multi-faceted initiative will offer financial education and homeownership education to more than 500 low and moderate income adults. Additionally, 30 youths, ages 13 -18, will receive financial education that includes budgeting and investing. Students will also manage a hypothetical $100,000 portfolio and receive a $100 stipend to open savings and mutual funds accounts. Partners include the Tampa Hillsborough Urban League, Tampa Neighborhood Housing Services and the Tampa Community Development Corporation.
  Contact: Sheila Lopez - (727) 893-1313



• Local Initiative Support Corporation (LISC), Tampa ($100,000): This Florida chapter of a national coalition that improves distressed communities will offer intensive financial training and credit education to more than 1,000 adults while offering Individual Development Accounts (IDAs) and assistance to help participants benefit from the Earned Income Tax Credit. Other partners include local banks, the FDIC and more than 20 nonprofits serving various low and middle-income populations in two area counties.
  Contact: Diana Kyle - (813) 932-2396

The Financial Literacy Grant Program was coordinated by Household's Diane Jackson, Director of Community Relations and Donna Funk, Director of Employee and Philanthropic Services. They evaluated the applicants based on the program's merits, existing or potential collaboration efforts, effectiveness of outreach, content expertise, delivery experience and overall effectiveness of the nonprofit.

Financial education and economic development are the cornerstones of Household's philanthropy. In 2002, they accounted for nearly 60 percent of Household's overall community investments.

About Household
Household International is a wholly-owned subsidiary of HSBC Holdings plc, one of the largest banking and financial services organizations in the world. Through its businesses, Household is a leading provider of consumer loans, credit cards, auto finance and credit insurance products in the United States, United Kingdom and Canada. In the United States, Household operates under the two oldest and most recognized names in consumer finance - HFC and Beneficial. Additionally, Household is 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.

Contact:
Diane Jackson, Director - Community Relations, Household (847) 291-2165