News Release

HSBC – North America to Offer Payment Flexibility, Waiver of Fees for Customers Affected by Hurricane Katrina

Company to continue paying displaced employees, contribute to relief efforts

2 September 2005

PROSPECT HEIGHTS, Ill. – HSBC – North America today announced extensive disaster-relief efforts for the company's customers in regions of Louisiana, Alabama and Mississippi who were affected by Hurricane Katrina.

The company will enable customers who live in FEMA-designated Individual Assistance disaster areas resulting from Hurricane Katrina to delay their payments for 30 days. HSBC – North America also will waive late and over-limit fees or other penalties that might normally be assessed. This payment delay will not be reported to credit bureaus as a delinquency. HSBC – North America customers are those served by HFC, Beneficial, HSBC Mortgage Services, HSBC Auto Finance, HSBC Bank USA N.A.and HSBC Mortgage Corp., and individuals who hold HSBC-issued retail cards and the HSBC Bank, Household Bank and Orchard Bank credit cards.

Consumer customers do not need to call the company in order to avail themselves of this additional payment flexibility. The company encourages customers who can call to do so so that the company can work with them on an individual basis.

In addition, these customers with HSBC-issued credit cards will receive waivers of cash-advance fees and may be eligible for emergency credit line increases. Customers of HFC and Beneficial may also be eligible for emergency lines of credit. Decisions will be made on a case-by-case basis.

The company will continue to evaluate the needs of its customers and employees in the coming days and will amend its policies as appropriate.

In addition, HSBC – North America will continue to pay employees who work at the company's nine Louisiana and two Alabama HFC and Beneficial lending offices that have been closed. The company also is providing hotel accommodations in Houston for employees and their families who have been impacted. HSBC employs nearly 1,000 people in Louisiana, Mississippi, Alabama and the Florida panhandle.

"The well-being of the people impacted by Hurricane Katrina is foremost in our thoughts," said Bobby Mehta, chief executive officer of HSBC North America Holdings Inc. "We will continue to support our customers, employees and the communities in which they live and work, and will monitor developments in the coming weeks to ensure that we contribute to a platform from which individuals and families can rebuild."

HSBC also has announced an immediate, initial $250,000 contribution to the American Red Cross Disaster Relief Fund to support ongoing rescue and cleanup efforts, and is matching dollar for dollar the individual contributions of the company's employees. Meanwhile, nearly 900 employees in seven HSBC call center facilities across the country volunteered their time to accept contributions on behalf of the American Red Cross during the American Red Cross "A Concert for Hurricane Relief" Sept. 2 event. The company donated call-center resources in New Castle, Del.; Chesapeake, Va.; Elmhurst, Ill.; Sioux Falls, S.D.; Tigard, Ore.; Las Vegas and San Diego, collecting thousands of contributions on behalf of the nonprofit organization.

Additionally, employees of HSBC Bank USA N.A. in Buffalo volunteered to accept telephone donations at the studios of Buffalo's NBC affiliate WGRZ-TV.

Meanwhile, HSBC employees who work at HFC and Beneficial branch offices in Texas are collecting clothing and supplies to aid individuals and families at the Houston Astrodome, and employees in Jacksonville, Charlotte and other areas of the country have launched fundraising events as well.

Media Contacts

• Rahsaan Johnson
• rahsaan.a.johnson@us.hsbc.com
• Group Public Affairs
• HSBC – North America
• (847) 564-7946