Press Release

The grants are part of Household's nationwide initiative to assist consumers in developing their budgeting, saving and credit management skills, and learning more about homeownership.

In addition to the Seattle area, Household in 2004 has awarded over $1 million in financial education grants to nine organizations in Tucson, Phoenix and Columbus, Ohio. Since 2002, Household has distributed more than $3 million in financial education grants to 36 local organizations in 11 U.S. markets.

The need for consumer financial education has never been greater. In 2003, non-business bankruptcy filings in Western Washington hit a record high 29,598, according to the American Bankruptcy Institute, a trend consistent with bankruptcy filings nationally.

Household has awarded 2004 financial education grants to four local organizations:

• Hopelink, based in Redmond, received $75,000 to support its Family Development Program that includes financial education and home-buying classes, as well as case management for low-income residents, most of whom are homeless or in transitional housing.

• El Centro de la Raza, serving the Chicano/Latino community in the Seattle/King County area, received $25,000 to expand the organization’s existing education and debt-management program to meet the cultural and language needs of the community.

• Fremont Public Association received $25,000 to expand its financial education workshops and credit-counseling services for low-income residents in Seattle. Participants also will have the opportunity to open checking accounts.

• First African Methodist Episcopal Church will use its $50,000 grant to provide workshops on credit management and homeownership for its members and residents of the church’s housing developments. A youth financial-literacy program also will give children an opportunity to open savings accounts.

"Knowledge is definitely power and these additional funds from Household will go a long way in allowing us to provide our residents with the information they need to make effective financial decisions," said Cheryl Cobbs, executive director, Fremont Public Association.

"We have a longstanding commitment to consumer financial education – it is critical that families understand how they can control their financial future," said Loretta Abrams, national director of consumer affairs at Household. "Working through these dedicated community organizations ensures that we reach as many Seattle-area residents as possible to help them with ongoing financial education."

Household's financial education program is a $13 million, multi-year investment by the company to educate consumers about how to build a brighter financial future for themselves and their families. Partnering with national organizations and local community groups, Household arms consumers with the tools and knowledge necessary to make informed financial decisions.

For more information about the grant program, contact Household's community relations department at communityrelations@household.com.

About Household International, Inc.

Household International's businesses are leading providers of consumer loans, credit cards, auto finance and credit insurance products in the United States, United Kingdom and Canada. Household is a member of HSBC Holdings plc (NYSE: HBC), one of the largest banking and financial services organizations in the world. 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.

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For more information, contact:

Mark Friedlander
HSBC North America Holdings
(847) 564-6137
mrfriedlander@household.com