HSBC IRAQ ACQUISITION

HSBC Holdings PLC
17 May 2005


         HSBC CONFIRMS NEGOTIATIONS WITH DAR ES SALAAM INVESTMENT BANK


HSBC confirms that it is in negotiations to take a majority stake in Dar Es
Salaam Investment Bank of Iraq.

Completion of the transaction is subject to regulatory and other approvals.

HSBC has been conducting business in the Middle East since 1889 and, through its
subsidiary HSBC Bank Middle East Limited, is now the largest international bank
in the region with branches in Bahrain, Jordan, Kuwait, Lebanon, Oman, the
Palestinian Autonomous Area, Qatar and the United Arab Emirates.

HSBC is committed to playing its part in the reconstruction of Iraq and to
investing in the country over the long-term. In partnering with Dar Es Salaam
Investment Bank, which has been operating successfully for more than five years,
HSBC believes that it can create a leading personal and commercial banking
service.

A further announcement will be made as and when appropriate.

Note to editors:

HSBC Holdings plc
HSBC Holdings plc serves over 110 million customers worldwide and operates
approximately 9,800 offices in 77 countries and territories in Europe, the
Asia-Pacific region, the Americas, the Middle East and Africa. With assets of
US$1,277 billion at 31 December 2004, HSBC is one of the world's largest banking
and financial services organisations. HSBC is marketed worldwide as 'the world's
local bank'.



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