News Release

HSBC Bank USA, N.A. Makes Landmark Earth Day Renewable Energy Commitment

Thirty Percent of Bank's Energy Usage in the United States to Be Replaced by Wind Power

22 April 2005

WILMINGTON, Del., Earth Day– HSBC Bank USA, N.A. is walking the Earth Day talk this year. The bank has taken a lead by making one of the largest ever commitments to renewable energy in North America. The bank will meet 30 percent of its needs for electricity through wind power.

Recognizing the importance of climate change, last December HSBC became the world's first major bank to commit to carbon neutrality and today its US banking unit announced that it has offset a substantial quantity of its carbon emissions by purchasing 45,454 MWh of clean, wind energy certificates. This purchase is one of the largest retail renewable energy purchases ever made in North America.

Electricity production is the leading cause of greenhouse gas emissions that contribute to global climate change. The bank is making strides towards working against climate change with this 45,454 MWh annual commitment which will offset 30 percent of its emissions and will prevent the release of over 36,000,000 pounds of carbon dioxide (CO2), a leading global warming gas. This has the environmental impact of planting over 4,500 acres of forest (7.1 square miles) or removing nearly 3,500 average passenger vehicles from U.S. roadways each year.

"HSBC is helping to build a sustainable planet and a sustainable economy" says HSBC Bank USA President & Chief Executive Officer Martin Glynn. "We want to be the first bank in the world to have zero greenhouse gas emissions and a cornerstone of this effort is powering our branches and offices with 30 percent clean, natural wind power."

HSBC purchased Green-e certified tradable renewable energy certificates (RECs), supplied by 3 Phases Energy Services, from new wind projects in California and Minnesota. Renewable energy certificates (RECs) represent the environmental benefits of clean energy production that serve to take the place of other non-renewable sources from the regional or national electric grid. HSBCs investment will contribute to further the development of new wind energy generation necessary for a clean energy future.

"This sizeable purchase puts HSBC into the ranks of America's leaders in green power purchasing," said Kurt Johnson, director of the U.S. EPA Green Power Partnership. "HSBC is setting a high standard for the financial sector and the broader business community." The Bank has joined the Green Power Partnership, an EPA voluntary program working to standardize green power procurement as part of best practice in corporate environmental management.

This initiative is in keeping with HSBCs announcement on December 6, 2004, that it is to become the first major bank in the world to commit to going carbon neutral. It will achieve this by reducing energy use, buying green electricity and then offsetting the remaining carbon dioxide (CO2) emissions by investing in carbon credit or allowance projects.

HSBCs commitment to the environment is well known. In 2002, the company announced Investing in Nature, a US$50 million, five-year program to support three leading environmental charities Botanic Gardens Conservation International (BGCI), Earthwatch Institute and World Wildlife Fund.

Globally, HSBC was named as one of the top fifty companies in the Climate Leadership Index at the launch of the Carbon Disclosure Project's (CDP) second report on climate change and shareholder value.

By making this landmark purchase, HSBC Bank is showing that Earth Day is not just another holiday, but a call to action.

About 3 Phases Energy Services
In operation since 1994, 3 Phases Energy is committed to promoting and implementing renewable energy options for businesses, utilities, governments, and institutions through Green Direct Access, green pricing support services for utilities, retail and wholesale sales of Green Certificates, and onsite efficiency and solar photovoltaic installation. For more information, visit www.3phases.com.