HFC Acquires Solstice Capital

HSBC Holdings PLC
29 August 2006




                      HSBC FINANCE CORPORATION TO ACQUIRE
                                SOLSTICE CAPITAL

HSBC Finance Corporation, a wholly-owned subsidiary of HSBC North America
Holdings Inc., has reached agreement with the shareholders of Solstice Capital
Group Inc. to acquire 100 per cent of the privately held US-based mortgage
lender.

The transaction is subject to regulatory approval.

Solstice Capital Group, based in Irvine, CA, had gross assets of USD $36.1
million at 30 June, 2006. The firm was founded in 1998 and has 170 employees
based primarily in Irvine, California, with satellite locations in Phoenix,
Arizona, and Las Vegas, Nevada. The company markets a range of mortgage and home
equity products to customers through direct mailing.

Tom Detelich, president of the consumer lending division of HSBC Finance
Corporation said: "Solstice Capital Group is an excellent strategic fit for
HSBC. This acquisition complements our strong bricks and mortar branch network.
We will be pleased to offer customers more choices and build upon the solid
platform that Solstice has established in the direct-to-consumer mortgage
origination market."

HSBC's consumer lending business operates in the United States under the HFC and
Beneficial names. It is the nation's second largest consumer finance company,
with more than 1,300 branches in 46 states, and it provides a variety of real
estate secured and unsecured loans to primarily non-prime customers.

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.

HSBC Holdings plc
HSBC Holdings plc serves over 125 million customers worldwide through some 9,500
offices in 76 countries and territories in Europe, the Asia-Pacific region, the
Americas, the Middle East and Africa. With assets of US$1,502 billion at 31
December 2005, HSBC is one of the world's largest banking and financial services
organisations. HSBC is marketed worldwide as 'the world's local bank'.





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