Acqn of Card Portfolio

HSBC Holdings PLC
14 June 2006





             HSBC ACQUIRES MUSICIAN'S FRIEND CREDIT CARD PORTFOLIO


HSBC Retail Services, a business unit of HSBC North America Holdings, Inc., has
acquired the credit receivables, and is managing the ongoing credit card
programme, of Musician's Friend along with those of the retailer's boutique
brands, Musician.com and Giardinelli.

HSBC Retail Services, through HSBC Bank Nevada, N.A., purchased some 
US$40 million in receivables and, under the terms of the five year 
agreement, paid a premium of approximately US$200,000.

Musician's Friend is one of the world's largest direct marketers of musical
instruments and related equipment, selling more than 36,000 products through 
its website and mail order catalogue. Musician.com sells instruments and 
equipment for professional musicians, while Giardinelli carries a full range of 
band and orchestra instruments.

Under the new HSBC credit card programme, Musician's Friend, Musician.com and
Giardinelli cardholders will benefit from a convenient form of payment, receive
previews of new product offerings and enjoy exclusive financing offers.

Musician's Friend is owned by Guitar Center, the number one retailer of guitars,
amplifiers, drums, keyboards and professional audio equipment products in the
US. In July 2005, HSBC extended its long-term agreement with Guitar Center to
continue managing the company's Preferred Player credit card.

1. Musician's Friend
One of the world's largest direct marketers of music gear, Musician's Friend
sells more than 36,000 products from its website and mail order catalogue,
including guitars, keyboards, sheet music, books, DJ gear, videos, strings,
drums and recording, lighting and audio-visual equipment. Musician's Friend was
founded in 1983 and was acquired by Guitar Center, Inc. in 1999.

2. HSBC Retail Services
HSBC Retail Services is a leading issuer of private label (merchant branded)
credit cards in the United States. This business provides flexible, customised
credit card solutions for many of the world's premier retailers and
manufacturers and has more than 60 active merchant relationships. For more
information, visit www.hsbcretailservices.com.

3. HSBC - North America
HSBC - North America comprises all of HSBC's US and Canadian businesses,
including the former Household 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.

4. 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'.






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