Dividend - Scrip Alternative

HSBC Holdings PLC
24 March 2004



                               HSBC HOLDINGS PLC
                        THIRD INTERIM DIVIDEND FOR 2003
                           SCRIP DIVIDEND ALTERNATIVE

On 1 March 2004, the Directors of HSBC Holdings plc declared a third interim
dividend for 2003 of US$0.24 per ordinary share payable on 5 May 2004 to
shareholders on the Register on 19 March 2004. 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$15.0552 for each new share

The "Market Value" is the United States dollar equivalent of £8.16, 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 March 2004 (the day on which the shares were first quoted
ex-dividend).

Dividends payable in cash in sterling or Hong Kong dollars on 5 May 2004 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 April 2004. 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 30 March 2004, and elections must be received by the Registrars by 22
April 2004.


R G Barber

Group Company Secretary

HSBC Holdings plc

Date: 24 March 2004


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