HSBC buys Neiman Marcus cards

HSBC Holdings PLC
13 June 2005


        HSBC TO ACQUIRE NEIMAN MARCUS PRIVATE LABEL CREDIT CARD ACCOUNTS

HSBC North America's Retail Services Division is to acquire the private label
credit card accounts and related assets of The Neiman Marcus Group Inc., the
US-based prestige retailer, and its subsidiary Bergdorf Goodman Inc.

Subject to regulatory approval HSBC will pay the net asset value of the assets
acquired, which is estimated to be approximately US$527 million, based on a
final valuation of the credit card book and related assets. HSBC will also
assume or repay approximately US$113 million of Neiman Marcus' securitisation
liabilities.

Under the agreement, Neiman Marcus will receive payments for a five year period
for services to be provided to HSBC Retail Services based on performance of the
credit programme. Neiman Marcus will continue to handle core customer service
functions like new account processing, transaction authorisation, billing
adjustments, collection services and customer enquiries.

HSBC and Neiman Marcus expect to close the transaction by July 31, 2005.

Joseph Hoff, chief executive officer of HSBC Retail Services, said: "There are
few names in retailing as well respected as Neiman Marcus. Helping our partners
grow through enhanced customer relationships is what drives us at HSBC, and we
are looking forward to reinforcing and extending the Neiman Marcus and Bergdorf
Goodman brands through every aspect of the private label card programme. Our
marketing, database analytics and CRM expertise, combined with our investments
in technology, allow us to support a positive customer experience across all the
critical interactions that the Neiman Marcus Group has with its customers."

HSBC North America includes all of HSBC's U.S. and Canadian businesses,
including the former Household businesses, and has more than US$300 billion in
assets. The company's businesses in North America serve more than 60 million
customers in five key areas: personal financial services, consumer finance,
commercial banking, private banking and corporate investment banking and
markets.

HSBC's Retail Services business is a leading issuer of private label (merchant
branded) credit cards in the United States. It provides customized credit card
solutions for the world's premier retailers and manufacturers and has more than
60 active merchant relationships, including Best Buy, Levitz Furniture and Saks
Fifth Avenue. Financial products and services are offered under the HSBC, HFC
and Beneficial brands. For more information, visit: www.hsbcusa.com.

Notes to editors:

HSBC Holdings plc
HSBC Holdings plc serves over 110 million customers worldwide through
approximately 9,800 offices in 77 countries and territories in Europe, the
Asia-Pacific region, the Americas, the Middle East and Africa. With assets of
US$1,277 billion at 31 December 2004, 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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