News Release

HSBC Mortgage Services Cuts Ribbon on New Headquarters

6 July 2006

PROSPECT HEIGHTS, Ill. - HSBC Mortgage Services, a subsidiary of HSBC North America Holdings Inc., will hold a ribbon cutting ceremony today in Fort Mill, S. C.  This event marks the relocation of HSBC Mortgage Services' headquarters to a new one million square foot corporate office park.  The event is being co-hosted by Lauth Property Group.  State and local leaders are participating in the event.

"We are excited to see the completion of this visible symbol of our company's continuing expansion," said Gary Esposito, chief executive officer of HSBC Mortgage Services.  "Our team is ready to move in, start working in this beautiful new facility in South Carolina, and continue delivering excellent business operations and customer service."

The move comes as a result of major employee growth within HSBC Mortgage Services.  More than 650 current employees will move into the facility this summer, with expansion planned in the coming years. 

In keeping with HSBC's commitment to the environment, the new facility is designated Class "A" and will be Leadership in Energy and Environmental Design (LEED) certified.  Being LEED certified means the facility has environmentally friendly features including indirect lighting and occupancy-sensored lights, computerized heating and cooling, centralized rooms to reduce heat and dust in the work area, higher ceilings and high energy efficient glass.  HSBC is helping to tackle one of the world's largest environmental challenges, climate change, by becoming the first major bank to go on carbon neutral.  Our carbon neutrality plans are being implemented worldwide.

Construction for the project was completed by Lauth Property Group.  The 182,000 square foot facility is located in the EdgeWater Corporate Center, near the intersection of South Carolina routes 521 and 160, in Lancaster County, South Carolina.  HSBC Mortgage Services headquarters is the first anchor building in this 90-acre business park.

"Lauth welcomes HSBC to its new headquarters and we are pleased to have this building as part of our master-planned development," said Robby Kirby, vice president of Lauth Property Group.  "It is a well-designed building that will accommodate HSBC's growing needs."

About HSBC - North America Holdings Inc.
HSBC - North America comprises all of HSBC's U.S. and Canadian businesses, including the former Household International businesses.  The company's businesses serve nearly 60 million customers in five key areas: personal financial services, consumer finance, commercial banking, private banking and corporate investment banking and markets.  Financial products and services are offered under the HSBC, HFC and Beneficial brands.  For more information, visit www.hsbcusa.com.

Lauth Property Group
Since 1977, Lauth has been building facilities for clients to lease or own throughout the United States.  Lauth's years of solid experience, coupled with completed projects worth billions, make it a leading national development and construction firm.  Lauth delivers virtually any type of facility including healthcare, industrial, office, or retail from offices nationwide.  Additional Lauth information is available at www.lauth.net.      

Media Contacts

• Diane Soucy Bergan
• diane.soucy.bergan@us.hsbc.com
• HSBC - North America
• 847-564-6761