Press Release

LOS ANGELES, Nov. 10, 2003 - The Hispanic Scholarship Fund (HSF), the nation's leading organization supporting Hispanic higher education, today announced it has received a $300,000 grant from Household International, Inc. for the HSF/Household Scholarship Program aimed at financing the college education of 51 Hispanic students for two years.

During a ceremony in Los Angeles last week, Donna Funk, director of philanthropic services for Household, presented a check to Julia Juarez, director of HSF's Southern California Regional Office in Los Angeles.

The HSF/Household Scholars will be chosen from a national pool of applicants to HSF's College Scholarship and Community College Transfer Scholarship programs that closed on Oct. 15. Students selected will receive a $2,500 scholarship to be awarded during the 2003-2004 academic year and, if the selected students maintain required grade point averages and academic standing at their schools, they will receive an additional $2,500 award for the following academic year.

"Household's investment in HSF is an illustration of the corporate leadership that we need to ensure opportunities for our children to get a college education and become skilled professionals, informed consumers and contributors to our community," said Sara Martinez Tucker, president and CEO of HSF. "An educated Hispanic population is fundamental to the future productivity and growth of the country's economy."

As the Hispanic population in the U.S. continues to dramatically increase, studies show a startling discrepancy in the educational attainment of Hispanics. According to the National Center for Education Statistics, Hispanics have the highest dropout rates at 28 percent, of any major racial or ethnic group (ages 16 to 24), compared to 7 percent for Whites and 13 percent for African Americans. In 2000, Hispanic students accounted for 7 percent of students enrolled at 4-year institutions. U.S. Census numbers show that just over 11 percent of Hispanic adults have a bachelor's degree, compared with 29.4 percent of non-Hispanic Whites.

For this reason, HSF established its current mission to double the rate of Hispanics earning their college degrees to 18 percent by 2010 and break the cycle of under-education in the Hispanic community through financial support and intensive outreach programs to inspire and inform Hispanic students and parents that college is attainable and affordable.

"Household's investment in the Hispanic Scholarship Fund is an investment in the future of the Hispanic community," Funk said. "Through this scholarship program, we are showing students that we think their education is important to the future of this country."

An independent study found that 97 percent of HSF Scholars have completed a bachelor's degree, while 43 percent seek graduate degrees. In addition, more than 88 percent of HSF Scholars earn more than the national per capita median income, almost 60 percent earn at least double the Latino median income, and two-thirds are engaged in volunteer community work.

About Household International, Inc
Household International, Inc., based in Prospect Heights, Ill., is a wholly owned subsidiary of HSBC Holdings plc (NYSE: HBC), one of the largest banking and financial services organizations in the world. Household's businesses are leading providers of consumer loans, credit cards, auto finance and credit insurance products in the United States, United Kingdom and Canada. In the United States, Household companies operate under the two oldest and most recognized names in consumer finance - HFC and Beneficial. Additionally, Household's businesses are some 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 www.household.com.

About the Hispanic Scholarship Fund
The Hispanic Scholarship Fund (HSF) is the nation's leading organization supporting Hispanic higher education. Founded in 1975, HSF's vision is to strengthen the country by advancing college education among Hispanic Americans, the country's largest minority population. In support of its mission to double the rate of Hispanics earning college degrees, HSF, a 501(c)3 not-for profit organization, provides the Latino community more college scholarships and educational outreach support than any other organization in the country. Headquartered in San Francisco, HSF has opened regional offices in Southern and Central California, the Northeast, the Southeast, Midwest and Texas. In addition, HSF launched the Washington, D.C.-based Hispanic Scholarship Fund Institute to generate public partnerships in support of its work. During its 28-year history, HSF has awarded more than 61,000 scholarships in excess of $115 million to Latinos from all 50 states, Puerto Rico and the U.S. Virgin Islands who have attended more than 1,700 colleges and universities.

Media Contacts:
Miguel Salinas, Hispanic Scholarship Fund, (415) 808-2352, msalinas@hsf.net

Mark Friedlander, Household International, (847) 564-6137, mrfriedlander@household.com