News Release

HSBC Brokerage (USA) Inc. and HSBC Securities (USA) Inc. Merge

11 January 2005

NEW YORK –  HSBC Brokerage (USA) Inc. has merged into its broker/dealer affiliate, HSBC Securities (USA) Inc., a New York Stock Exchange Member firm, and has taken on the HSBC Securities name. HSBC Brokerage historically has served personal clients of HSBC while HSBC Securities served corporate and institutional clients.

"By consolidating the combined talents of both companies, our clients can benefit from the collective strength of each entity," said Anthony J. Murphy, chief executive officer of HSBC Securities (USA) Inc. Managing director and head of private client services Gregory Webster added: "Our personal clients will now have greater access to markets, a broader array of products and improved service efficiencies."

This merger will have no impact on customers' accounts or account numbers, nor will it cause any disruption of service as the HSBC Brokerage operating, trading and clearing platform has not changed. HSBC Brokerage accounts automatically converted to HSBC Securities accounts on January 1, 2005.

About HSBC Securities (USA) Inc.
HSBC Securities (USA) Inc. is a registered broker dealer of securities and a Futures Commission Merchant. It is also engaged in investment banking underwriting, dealing and brokering of debt and equity securities and futures contracts and is a primary dealer in U.S. Government and federal agency securities. HSBC Securities (USA) Inc. is a member of the New York Stock Exchange, National Association of Securities Dealers, Chicago Mercantile Exchange, Chicago Board of Trade and other stock and commodity exchanges.