MLHSBC integrated into HSBC

HSBC Holdings PLC
Merrill Lynch & Co. Inc.
17 May 2002


The following is the text of an announcement issued jointly by HSBC Holdings plc
and Merrill Lynch today.


                       MLHSBC TO BE INTEGRATED INTO HSBC


HSBC and Merrill Lynch have agreed in principle that their joint venture
company, Merrill Lynch HSBC (MLHSBC), will be integrated into the HSBC Group.

MLHSBC was formed as a 50:50 joint venture between HSBC and Merrill Lynch in
April 2000 to provide direct investment and banking services over the internet
to mass affluent investors outside the US. The company currently operates in
Australia, Canada and the UK.

In the past year, MLHSBC has been ranked first in Europe for 'Usability' by
BlueSky International, and 'Most Consumer Friendly Online Broker' by Investor's
Week magazine. In Australia, the company was named 'Online Broker of the Year'
and 'Best Online Broker for Experienced Investors' by Personal Investor magazine
and by yourbroker.com.au respectively. The Globe & Mail in Canada ranked MLHSBC
a close second to the country's market leading broker.

However, notwithstanding the progress made, economic conditions and low online
investor volume have created a difficult trading environment for the joint
venture and business expansion plans have been postponed for the time being.
Following a strategic review of the joint venture, it was considered that the
business could be developed more effectively if integrated within the HSBC Group
rather than remaining as a joint venture. The decision also reflects Merrill
Lynch's review of its international retail operations in the light of changed
market conditions.

Going forward, MLHSBC will enjoy more direct access to the resources of HSBC. It
is intended that the business will continue to use Merrill Lynch as part of its
name and clients will still have access to Merrill Lynch research, for 21/2
years. Merrill Lynch will also continue to provide trading and settlement
services for a transition period.

Keith Whitson, HSBC's Group Chief Executive and Chairman of MLHSBC, said: "HSBC
remains confident in the long-term prospects for MLHSBC's business. We are
pleased that the new structure allows for a continuing relationship with Merrill
Lynch, including access to Merrill's research for MLHSBC clients."

Michael Marks, Executive Vice President of Merrill Lynch and Chairman of Merrill
Lynch Investment Managers and International Private Client Group, commented: "We
are very pleased to have reached this agreement with HSBC, which has resulted
from a strategic review of all our business operations in the light of changed
market conditions."

Merrill Lynch does not envisage a material impact to its financial results for
the 2002 second quarter or future periods as a result of this agreement. As at
31 December 2001, the net asset value of MLHSBC was US$109 million.



Notes to editors:

The HSBC Group (NYSE: HBC)

Headquartered in London, with assets of US$696 billion as at 31 December 2001,
the HSBC Group is one of the largest banking and financial services
organisations in the world. HSBC's international network comprises some 7,000
offices in 81 countries and territories in Europe, Asia-Pacific, the Americas,
the Middle East and Africa. For further information on HSBC, please visit
www.hsbc.com

Merrill Lynch (NYSE: MER)

Merrill Lynch is one of the world's leading financial management and advisory
companies, with offices in 38 countries and total client assets of approximately
US$1.4 trillion. As an investment bank, it is a leading global underwriter of
debt and equity securities and strategic advisor to corporations, governments,
institutions, and individuals worldwide. Through Merrill Lynch Investment
Managers, the company is one of the world's largest managers of financial
assets. For more information on Merrill Lynch, please visit www.ml.com

The foregoing statements may include forward-looking information subject to
risks, uncertainties and other factors that could materially affect actual
results. These are described in Merrill Lynch's 2001 reports on Forms 10-K, 10-Q
and 8-K and in the 2001 Annual Report on Form 20-F of HSBC Holdings plc, which
are available at the SEC's website, www.sec.gov


                      This information is provided by RNS
            The company news service from the London Stock Exchange