HSBC: Public Offer

HSBC Hldgs PLC
2 October 2000



           HSBC SEEKS TO INCREASE SHAREHOLDING IN
                    EGYPTIAN BRITISH BANK

HSBC is launching a cash offer to purchase additional shares
in Egyptian British Bank S.A.E. (EBB). HSBC already owns
794,336 EBB shares, or approximately 40 per cent of its
issued share capital, with the remainder held by individual
and institutional shareholders.

The offer price is EGP500 (approximately US$140.7) per
share. HSBC intends to acquire at least a further 226,770
shares, or approximately 11 per cent of EBB's issued share
capital. The offer, which opens on 3 October 2000 and closes on
11 October 2000, will become unconditional if acceptances are
received in respect of at least 226,770 shares. HSBC
reserves the right to withdraw the offer if it does not
receive acceptances for this minimum number of shares. The
offer is also subject to receipt of regulatory approvals.

The consideration payable by HSBC if the offer is accepted
by the holders of 226,770 shares would be approximately
EGP113.4 million (approximately US$31.9 million).

EBB was established in 1982, originally as Hongkong Egyptian
Bank S.A.E.. With assets of EGP3,229 million (US$935
million) at 30 June 2000, it is one of the largest privately-
owned banks in Egypt and provides a comprehensive range of
banking and related financial services through a network of
seven branches. It acts as lead or main bank in Egypt for
many multinational companies directly or through their local
operations. It has a growing personal banking business which
will be developed further should the offer be successful.

The offer is based on recognition of what has been achieved
by the existing management team, which will continue to be
key in the ongoing development of the bank's business.

Andrew Dixon, deputy chairman of HSBC Bank Middle East,
said: 'The time has come to increase HSBC's presence and
visibility in Egypt. The economy has achieved sustained
growth and continues to liberalise. Opportunities for
developing new banking services are likely to increase, and
HSBC is well placed to respond to them.

'In particular we see considerable scope for introducing a
range of HSBC's wealth management services to this important
regional market and EBB, which has performed well, is the
obvious vehicle through which to do so.'

HSBC Investment Company (Egypt) S.A.E. advised HSBC on
developing its strategy in Egypt, and HSBC Securities
(Egypt) S.A.E. will act as nominated broker for all
acceptances.

Notes to Editors

1. The offer
The offer is being made by HSBC Holdings BV, a wholly owned
subsidiary of HSBC Holdings plc and the parent company of
HSBC Bank Middle East.

2. HSBC Bank Middle East
HSBC Bank Middle East is the largest and most widely
represented international bank in the Middle East with 29
branches throughout the United Arab Emirates, Oman, Bahrain,
Qatar, Jordan, Lebanon, and the Palestinian Autonomous Area
including an offshore banking unit in Bahrain. This
extensive regional coverage is enhanced by the HSBC Group's
associate companies, The Saudi British Bank, Egyptian
British Bank and British Arab Commercial Bank. In addition
to its Middle Eastern network, the bank has branches in
Baku, Azerbaijan and in London, UK. It also has a
representative office in Tehran, Iran.

3. HSBC Holdings plc
HSBC Bank Middle East is a principal member of the HSBC
Group which, with some 6,000 offices in 81 countries and
territories and assets of US$580 billion at 30 June 2000, is
one of the world's largest banking and financial services
organisations.