HSBC sells Argentina ins. op.

HSBC Holdings PLC
30 December 2003



             HSBC SELLS ITS INTEREST IN HSBC SALUD (ARGENTINA) S.A.
                             TO SWISS MEDICAL GROUP

Following the exercise by New York Life Inc. of its put option over 40 per cent
of HSBC Salud (Argentina) S.A. and the subsequent acquisition of this interest
by HSBC, HSBC has agreed to sell the entire issued capital of HSBC Salud
(Argentina) S.A. to Swiss Medical Group. The net negative equity of HSBC Salud
(Argentina) S.A. as at 30 June 2003 (under UK GAAP) was ARS3.6 million.

HSBC Salud (Argentina) S.A. is one of the leading providers of prepaid medical
insurance in Argentina. The company has a network of branches across Argentina
serving over 158,000 individual and corporate clients.

Swiss Medical Group is a leading provider of health insurance services in
Argentina with 300,000 clients and an annual turnover of ARS450 million.

The provision of prepaid health insurance is not a core business for the HSBC
Group and, following the sale of a similar business in Brazil earlier in the
year, it has decided to sell the business in Argentina. HSBC will use the
majority of the sales proceeds to strengthen the capital position of its other
businesses in Argentina.

The sale of HSBC Salud (Argentina) S.A. to Swiss Medical Group is effective 23
December 2003. Swiss Medical Group will take over the 422 employees who work for
the company.

David Budd, CEO of HSBC Argentina, said: "We are confident that this will be a
seamless transaction for our customers who will not be inconvenienced in any
way. The agreement ensures that HSBC Salud customers will suffer no change in
the coverage or the quality standards of the health insurance they are currently
receiving."

Note to editors

HSBC Holdings plc
With over 9,500 offices in 79 countries and territories and assets of US$983
billion at 30 June 2003, HSBC Holdings plc is one of the world's largest banking
and financial services organisations.


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