News Release

HSBC Finance Corporation Declares Dividends for Holders of Series B Preferred Stock

18 August 2006

Prospect Heights, IL - August 18, 2006 - HSBC Finance Corporation announced today that its board of directors declared the regular quarterly cash dividend on the company's Series B preferred stock of $0.3975 per depositary share payable September 15, 2006, to shareholders of record on August 30, 2006.

About HSBC North America Holdings Inc.

HSBC - North America (NYSE: HBC)  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.

Media Contacts

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