HSBC acq maj share of AM TeK

HSBC Holdings PLC
01 July 2003

                 HSBC SIGNS AGREEMENT TO ACQUIRE MAJORITY SHARE

                      OF ASSET MANAGEMENT TECHNOLOGY KOREA

HSBC has agreed to acquire 82.19 per cent of fund administrator Asset Management
Technology Korea Co., Ltd. (AM TeK) for KRW14.88 billion (US$12.47 million), to
be paid in cash, with a view to reaching an agreement to purchase up to an
additional 8.28 per cent. The acquisition values AM TeK at KRW18.1 billion
(US$15.18 million).

HSBC's acquiring entity, HSBC Asia Pacific Holdings (UK) Limited, will acquire
the equity shareholdings in AM TeK from Daehan Investment & Securities Co., Ltd.
(DI&S), AM TeK's largest stakeholder, and other shareholders. The agreement is
subject to various approvals.

With KRW29 trillion (US$24 billion) of assets under administration at 31 May
2003, AM TeK is the largest fund administrator in Korea's growing unit trust and
mutual fund market. AM TeK's client base includes a number of Korea's largest
investment trust management companies, asset management companies and foreign
fund managers.

Rick Pudner, Chief Executive Officer of HSBC in Korea, said: "The acquisition of
AM TeK represents a unique opportunity for HSBC to acquire a profitable,
experienced and major player in an industry that is expected to grow
significantly over the next decade. We plan to build on AM TeK's established
relationships with domestic investment managers, its large market share,
experienced staff and advanced systems. We see great potential in offering
locally a one-stop shop to both domestic and foreign-owned fund managers."

AM TeK's sophisticated proprietary fund administration and information
management systems will add to HSBC's already renowned, top-quality
Institutional Fund Services (IFS) systems. Through IFS, HSBC provides regional
fund administration, custody, transfer agency and outsourcing services to
clients, which include hedge funds, fund of funds, pension funds and traditional
funds. IFS is the longest established fund administrator in Asia and administers
over US$30 billion of client assets in Hong Kong alone.

Notes to editors:

1. HSBC's Institutional Fund Services

HSBC's Institutional Fund Services, which operates through the oldest trust
company in Hong Kong, has over 55 years experience in the administration of
trusts and funds. Since 1946, it has been providing asset managers with
comprehensive administrative support services in relation to provident and
investment funds. IFS also has fully-fledged administration capabilities in
Singapore and Malaysia and operates through the oldest established trust company
in these jurisdictions. IFS also provides fund administration services to
domestic funds in India, Korea and Indonesia. A leading industry player, IFS was
recently named Best Fund Administrator in AsianInvestor magazine's 2003
Achievement Awards.

2. HSBC in Korea

The HSBC Group's presence in Korea dates back to the late 1890s, when agencies
were established in Chemulpo (Inchon) and Seoul. The Group now has full branches
in Pusan and Seoul and is also represented in Korea by HSBC Insurance Brokers
(Asia-Pacific) Limited and HSBC Forfaiting (Asia) Pte Limited. HSBC in Korea
provides a broad range of banking services including custody and clearing,
trustee services, corporate and commercial banking, payments and cash
management, treasury and capital markets, trade services and personal financial
services.

3. The HSBC Group

The Hongkong and Shanghai Banking Corporation Limited is the founding and a
principal member of the HSBC Group which, with over 9,500 offices in 80
countries and territories and assets of over US$759 billion at 31 December 2002,
is one of the world's largest banking and financial services organisations.


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