HSBC PRIVATE EQUITY

HSBC Holdings PLC
18 March 2003

                             HSBC RESTRUCTURES ITS

                        EUROPEAN PRIVATE EQUITY BUSINESS


HSBC Holdings plc (HSBC) has sold a majority stake in its European private
equity business, HSBC Private Equity Limited, to its existing management team.

Under the terms of the agreement, HSBC has reduced its shareholding in HSBC
Private Equity Limited from 100 per cent to 19.9 per cent and management has
acquired the majority 80.1 per cent stake. HSBC Private Equity Limited had net
assets of £304,295 at 17 March 2003.

This change in shareholding structure follows a review by HSBC of its European
private equity investment strategy. This concluded that by becoming a minority
shareholder HSBC, and HSBC Private Equity Limited, will both obtain greater
flexibility in the future development of their respective businesses.

Upon completion of the transaction, HSBC Private Equity Limited changed its name
to Montagu Private Equity Limited. It will remain HSBC's principal vehicle for
investing in European private equity opportunities.

Notes to editors

1. Montagu

HSBC Private Equity Limited was previously named Montagu Private Equity Limited
between May 1994 and February 1996.

The Montagu name derives from the stockbroker Montagu & Samuel formed in London
in 1853 by Samuel Montagu. Midland Bank acquired a one third share in the
Montagu Trust in 1967 and 100 per cent ownership in 1973. Midland Bank was
subsequently acquired by HSBC Holdings in 1992. HSBC discontinued use of the
Montagu brand in October 2000.

2. HSBC Private Equity

HSBC Private Equity has over £1.2 billion under management and offices in
London, Manchester, Paris, Dusseldorf and Stockholm. It has supported more than
400 businesses over the last 30 years, and in 2002 arranged four transactions
with a total investment of £207 million. In 2002 the company closed a new fund
totalling £1.2 billion.

3. HSBC Holdings plc

HSBC Private Equity is the European private equity arm of the HSBC Group. With
over 8,000 offices in 80 countries and territories and assets of US$759 billion
at 31 December 2002, the HSBC Group is one of the world's largest banking and
financial services organisations.


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