HSBC Scrip Dividend

HSBC Holdings PLC
24 May 2006



                               HSBC HOLDINGS PLC
                        FIRST INTERIM DIVIDEND FOR 2006
                           SCRIP DIVIDEND ALTERNATIVE

On 2 May 2006, the Directors of HSBC Holdings plc declared a first interim
dividend for 2006 of US$0.15 per ordinary share payable on 6 July 2006 to
shareholders on the Register on 19 May 2006. The dividend is payable in cash in
United States dollars, sterling or Hong Kong dollars, or a combination of these
currencies, with a scrip dividend alternative. The "Market Value" for the issue
of new shares under the scrip dividend alternative is:

                         US$17.5938 for each new share

The "Market Value" is the United States dollar equivalent of £9.346 being the
average of the middle market quotations for the ordinary shares on the London
Stock Exchange as derived from the Daily Official List for the five business
days beginning on 17 May 2006 (the day on which the shares were first quoted
ex-dividend).

Dividends payable in cash in sterling or Hong Kong dollars on 6 July 2006 will
be converted from United States dollars at the forward exchange rates quoted by
HSBC Bank plc in London at or about 11.00 am on 26 June 2006. These exchange
rates will be announced to the London, Hong Kong, New York, Paris and Bermuda
stock exchanges.

Particulars of the dividend arrangements will be mailed to shareholders on or
about 1 June 2006, and elections must be received by the Registrars by 22 June
2006.

R G Barber
Group Company Secretary
HSBC Holdings plc



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