Bank of Bermuda acquisition

HSBC Holdings PLC
22 September 2004


           BANK OF BERMUDA ACQUIRES BOE FUND BUSINESS IN ISLE OF MAN

Bank of Bermuda (Isle of Man) Limited, now owned by HSBC Holdings plc, has
acquired the offshore fund administration and management business of BoE with
the purchase of the entire share capital of BoE International Fund Services
Limited and BoE International Fund Managers Limited.

The value of net assets acquired from BoE is £500,000.

BoE International Fund Services in the Isle of Man administers 50 funds with
approximately £1.2 billion of assets under administration and employs 17 staff.
Following the acquisition of The Bank of Bermuda Limited by HSBC in February
this year, the Global Fund Services division has become the Alternative Fund
Services arm of HSBC Securities Services. The combined business of BoE and
HSBC's Alternative Fund Services in the Isle of Man will be the largest fund
administrator on the Island.

Caroline Cornish, Head of HSBC Securities Services in the Isle of Man comments:
"Working closely with BoE's parent, Nedcor Wealth Management, and HSBC we were
able to complete the purchase very swiftly. We are experiencing rapid expansion
in our business worldwide and securing an established fund administration team
together with a quality client base will contribute significantly to our
continued success."

Paul Smith, Global Head of HSBC's Alternative Fund Services, said: "We have a
strong team in the Isle of Man and a good client base. I am delighted that the
BoE acquisition will add strength to both. One of the great attractions of this
deal was the opportunity to acquire the high quality of staff that BoE bring to
us. Being part of one of the world's largest financial institutions enables us
to maximise the services offered by other parts of the HSBC group to the benefit
of all our clients."

Alan Smith, Global Head of Marketing and Strategy for HSBC's Alternative Fund

Services added: "We have been looking at BoE's offshore fund administration and
management business for some time and this deal further demonstrates HSBC's
commitment to our core business and to the Isle of Man as a centre for fund
administration."

Commenting on the sale, Andrew Lodge, Managing Director of Nedcor's asset
management business in the Isle of Man said: "To be successful in the fund
services business requires a global presence and state-of-the-art technology.
Following Nedcor's acquisition of BoE, it was clear that BoE Fund Services was
not a core offering of our International Wealth Management Division and a sale
would be the preferred option to provide clients and staff with the correct
environment in a growing business.

"Nedcor continues to have a strong presence in the Isle of Man spanning fund
management through NIB International Asset Management Limited, an offshore fund
supermarket, Nedcor International Fund Xchange, and private banking through
Gerrard Private Bank. We will continue to be a major client of the BoE Fund
Services business and we wish it every success under its new ownership."

Notes to Editors:

HSBC Securities Services
HSBC Securities Services, a division of Global Transaction Banking in HSBC's
Corporate, Investment Banking and Markets, provides comprehensive global,
regional and domestic services, for independent and institutional clients,
including global custody, traditional and alternative fund administration,
corporate trust and loan agency and custody and clearing. Alternative Fund
Services forms part of HSBC Securities Services and provides administration
services for hedge funds, fund of funds, emerging market funds and private
equity funds.



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